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Trump Says Fed Must Cut Rates · Balance of Power

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Speaker 1: Bloomberg Audio Studios.
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Speaker 4: News.
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Speaker 6: The happy Friday perhaps at the White House as well
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Speaker 6: as President Trump celebrates these jobs numbers today. He noted
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Speaker 6: on True Social, great job numbers just announced breaking all estimates.
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Speaker 6: except mine, he says in parentheses, by double and triple,
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Speaker 6: and you haven't seen anything yet. He goes on, quote,
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Speaker 6: lower the interest rates because the USA is a much
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Speaker 6: stronger credit than it was just a short time ago.
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Speaker 6: A strong country means a lower interest rate. It's a
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Speaker 6: better credit. Very simple, the president says. Later on in
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Speaker 6: the post, making a call or perhaps issuing a threat,
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Speaker 6: lower the rate or I'll stop trading with countries with
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Speaker 6: which we have a deficit. So obviously, this is the
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Speaker 6: president's theory of the case. And the director of the
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Speaker 6: National Economic Council at the White House, Kevin Hassett, was
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Speaker 6: asked about this notion that better economic figures should lead
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Speaker 6: to lower rates, not higher ones.
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Speaker 1: This was Mr. Hassett's response.
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Speaker 7: I spoke to the president last night, and his view
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Speaker 7: is that when we get really, really good news like
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Speaker 7: we have. and really, really good news like we have
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Speaker 7: on inflation. He's not giving the Fed policy advice. He's
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Speaker 7: saying it's natural that people would say, oh, well, the U.S.
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Speaker 7: is in a better fiscal situation because it's growing so
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Speaker 7: much it'll have more tariff and tax revenue. And over time,
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Speaker 7: that should affect bond markets.
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Speaker 8: But of course, it just doesn't work that way. And
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Speaker 8: we want to continue the conversation with Skylar Woodhouse, who's
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Speaker 8: at the White House with the president's reaction before we
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Speaker 8: bring in Liz Pancotti. from Groundwork Collaborative. Skyler, White House correspondent,
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Speaker 8: thanks for joining us, Skyler. I guess I'm just trying
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Speaker 8: to figure out what the president's motivations are here. Is
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Speaker 8: he trying to change the way that we in media
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Speaker 8: and the way markets look at this as an economic concept,
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Speaker 8: or is he having trouble understanding it himself?
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Speaker 9: Yeah, Joe.
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Speaker 10: Well, the president does like to say he's an expert
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Speaker 10: across various sectors. So this is not really surprising that he.
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Speaker 1: Is sort of leaning into giving, you.
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Speaker 10: Know, economic advice on what interests— on what should happen to
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Speaker 10: interest rates. Now, he, in one of his true social posts,
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Speaker 10: had alluded that growth does.
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Speaker 1: Not cause inflation.
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Speaker 10: And it's obvious, you know, he really wants to see
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Speaker 10: those interest rates lowered.
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Speaker 1: It's sort of just become this point.
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Speaker 10: Now that he started and it's like he won't give
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Speaker 10: up on it. So he's just going to keep going
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Speaker 10: until we'll see if he gets what he wants with
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Speaker 10: the lower interest rates.
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Speaker 6: Well, even as he has said that he trusts Kevin Warsh,
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Speaker 6: the new man helming the Federal Reserve, to do what
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Speaker 6: he thinks is best, the suggestion that the Fed independence
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Speaker 6: will be respected under the Warsh regime, it's the other members,
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Speaker 6: at least according to his True Social post, that he's
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Speaker 6: concerned with, saying that they need to find their patriotism,
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Speaker 6: to summarize his words.
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Speaker 1: Skylar, I wonder if we'll get more of this.
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Speaker 6: From the president on stage when he takes the stage
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Speaker 6: two nights in a row in Dallas, the RNC confirming
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Speaker 6: that he will be headlining both nights.
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Speaker 1: What's that about?
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Speaker 10: Yeah, Kayleigh, look, next week, this convention, it'll be pretty interesting.
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Speaker 10: It's rather unconventional, the fact that they're pulling this together
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Speaker 10: during a midterm year and not a presidential year, which
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Speaker 10: is when we typically see these large-scale events. So this
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Speaker 10: will be very interesting. You know, the president... sort of
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Speaker 10: pitch this idea and it's something that they have run with.
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Speaker 10: But Republicans who, you know, are still maybe have tougher
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Speaker 10: races are trying to distance themselves from Trump and from
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Speaker 10: sort of some of his policies, especially as affordability, the
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Speaker 10: war in Iran, higher gas prices have really become front
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Speaker 10: and center as the midterms near. So we'll see what
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Speaker 10: the president has in stores next week. But it certainly
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Speaker 10: will be historic, as this is something we traditionally don't
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Speaker 10: typically see.
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Speaker 2: All right.
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Speaker 6: Skylar Woodhouse on the White House North Lawn for us.
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Speaker 6: Thank you so much, Skylar, for the coverage and looking
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Speaker 6: forward to the coverage into next week as well.
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Speaker 1: I myself will be heading to Dallas.
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Speaker 3: See the forecast?
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Speaker 1: Yeah, I've seen the forecast, Joe. Not thrilled about it.
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Speaker 1: It's going to be very hot.
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Speaker 8: I'm not jealous for what you're going to experience, but
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Speaker 8: a lot of indoor, a lot of air conditioning.
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Speaker 6: Yes, I will be in a nice air conditioned studio
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Speaker 6: for a lot of it. Any Republican attendees at this
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Speaker 6: convention who'd like to come by and chat with us
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Speaker 6: on Bloomberg TV and radio, you are more than welcome
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Speaker 6: to our air conditioning.
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Speaker 1: Yes, we very much do.
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Speaker 6: Of course, when Dallas is happening, we also will be
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Speaker 6: getting some pretty important inflation data that day. And I'm
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Speaker 6: wondering how Republicans are going to be messaging on that
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Speaker 6: as well. Of course, depending on what the print is,
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Speaker 6: whether it's hot or cold, is that, of course, could
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Speaker 6: indicate the direction that the Federal Reserve may want to
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Speaker 6: trend in in the next couple of weeks.
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Speaker 1: Thank you, Joe.
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Speaker 6: I thought about that one in advance. Inflation, of course,
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Speaker 6: is one thing to consider. The labor market is another.
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Speaker 6: And the labor market, at least on the surface, when
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Speaker 6: you look at today's report, looks like it's doing pretty well.
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Speaker 6: So let's get more on this with Liz Pancotti, Vice
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Speaker 6: President of Policy, Advocacy and Research at the Groundwork Collaborative.
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Speaker 6: Welcome back to Bloomberg TV and Radio. Liz, the president
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Speaker 6: clearly happy with these numbers. He thinks they're great. The
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Speaker 6: economy's doing well. Therefore, rates should be going down, not up,
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Speaker 6: because we're a better credit. Is his thinking right?
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Speaker 11: You know, I think the president took to Truth Social
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Speaker 11: after the jobs report this morning. Good that he did
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Speaker 11: it after the jobs report rather than before, because we
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Speaker 11: had a couple mishaps where he kind of scooped the
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Speaker 11: BLS numbers. But this morning's print of 160,000 jobs added
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Speaker 11: is kind of a noisy one in my mind.
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Speaker 1: Last month we had 12,000 jobs.
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Speaker 11: Taken away from the economy, revisions have that actually flipped
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Speaker 11: to positive. Things are pretty noisy in the economic data
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Speaker 11: right now. But I think the two big things that
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Speaker 11: jumped out to me this morning are one, about a
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Speaker 11: third of jobs were added in food and restaurant service
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Speaker 11: sector jobs. We know that those are typically lower wage jobs.
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Speaker 11: And so as we think about affordability, we're losing jobs
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Speaker 11: in white collar fields like IT and financial services, gaining
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Speaker 11: jobs in food service. Something that looks maybe a little
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Speaker 11: bit like the 2010 to 2012 job sector.
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Speaker 1: So keeping an eye on that.
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Speaker 11: The other thing is that we have seen wage growth
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Speaker 11: slow once again for an additional month. And as you mentioned,
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Speaker 11: we've got CPI coming next week, which will tell us
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Speaker 11: if those gains were actually wiped away for price increases.
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Speaker 11: I think all accounts point to that being the case,
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Speaker 11: a difficult thing for the Fed to manage at its
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Speaker 11: meeting later this month, though the president has weighed in
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Speaker 11: and said if they don't cut rates, he will go
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Speaker 11: back to Liberation Day and cut off all trade with
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Speaker 11: countries with which we have a surplus.
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Speaker 1: So a big two weeks, I think, to keep an
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Speaker 1: eye on.
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Speaker 8: Okay, so I want to explore this a little bit
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Speaker 8: more with you, abstract as it may be. A strong
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Speaker 8: country means a lower interest rate, in all caps. It's
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Speaker 8: a better credit. Park that and listen to what he
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Speaker 8: said on August 19th in an effort to try to
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Speaker 8: make the same point.
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Speaker 3: Here's the president.
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Speaker 4: Now when we announce good numbers, the better they are,
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Speaker 4: the worse it is for interest rates. We could have
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Speaker 4: a GDP of 10, 12, 15 times if they just
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Speaker 4: leave us alone.
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Speaker 1: Let the rates go down.
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Speaker 4: We should pay the lowest interest rates. You know, every
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Speaker 4: point of interest is $ 600 billion.
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Speaker 1: Think of that.
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Speaker 4: When our country does well, interest rates should go down.
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Speaker 8: Okay, I don't know if you're following that, but he's
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Speaker 8: looking at this as someone seeking a loan and would
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Speaker 8: receive a lower interest rate based on his good credit.
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Speaker 8: Would you still fail him in your economics class for
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Speaker 8: making that point?
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Speaker 11: I think that the issue with the president is he
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Speaker 11: approaches this job as the same way he approached the
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Speaker 11: job when he was a real estate mogul. He's looking
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Speaker 11: at how much it's going to cost to build his
8:12
Speaker 11: archway and his ballroom and not how much it's going
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Speaker 11: to cost for the American people to buy a house
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Speaker 11: or afford groceries, which is really the mandate voters have
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Speaker 11: given him. unfortunately for the president, if he would like
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Speaker 11: lower rates, there's a very easy way to get them.
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Speaker 11: And it's to stop his war in Iran and to
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Speaker 11: reverse his tariffs, which will bring prices down.
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Speaker 1: It's very simple.
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Speaker 11: And he has instead proposed doing the opposite, which will
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Speaker 11: send rates even higher.
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Speaker 6: Well, so your point is he needs to address the
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Speaker 6: inflationary pressures that exist. He also argues growth does not
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Speaker 6: cause inflation. Can that not at least sometimes be true,
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Speaker 6: that you can have growth that isn't inflationary.
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Speaker 11: That's true, completely. I think we have a couple issues
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Speaker 11: with that right now. One, we don't have great growth.
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Speaker 11: We've seen pretty sluggish growth that is almost entirely driven
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Speaker 11: by the AI data center build out over the last
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Speaker 11: 18 months. When we look at the sectors that the
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Speaker 11: president promised to really deliver a boom to, manufacturing, construction.
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Speaker 11: Those sectors aren't seeing the rebound that he has suggested
9:11
Speaker 11: they will. We are importing a lot of those data
9:14
Speaker 11: center materials. And he continues to press forward with tariff
9:17
Speaker 11: regimes like the new tariffs on Canada, which will affect
9:20
Speaker 11: the auto supply chain, where we saw actually a pretty
9:22
Speaker 11: sizable drop in employment in the automotive sector last month.
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Speaker 11: So I don't think that those are incompatible on face value.
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Speaker 11: In fact, the last year of the Biden administration, we
9:32
Speaker 11: saw a lot of progress on inflation.
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Speaker 1: And very high GDP growth. I think that's possible to have.
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Speaker 11: It is not, however, possible to have massive sweeping tariffs,
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Speaker 11: a war in Iran, stoking global supply chain pressures, very
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Speaker 11: slow GDP growth, a labor market that is whiplashing, and
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Speaker 11: stable prices.
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Speaker 6: Well, on this tariff notion, our colleagues Mike McKee and
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Speaker 6: Isabel Lee spoke earlier today with the chair of the
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Speaker 6: Council of Economic Advisors at the White House, Christopher Phelan,
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Speaker 6: about tariff and the pricing pressures that they cause. This
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Speaker 6: is what he told them.
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Speaker 12: I think the important thing is... The Trump administration has
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Speaker 12: specifically said they want manufacturing to come back to the
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Speaker 12: United States. We are saying to companies, either pay a tariff,
10:17
Speaker 12: somebody pays the tariff, or produce it in the United States.
10:20
Speaker 12: And we are seeing a good fraction of them saying, okay,
10:25
Speaker 12: we'll make it in the United States. The manufacturing boom,
10:28
Speaker 12: the non-residential construction boom is real, and it's showing up
10:34
Speaker 12: in the data. It's showing up in the data for
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Speaker 12: capital expenditures. It's showing up in the jobs data.
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Speaker 6: But you're saying, Liz, that that boom is not real
10:42
Speaker 6: if you take out data centers from the equation.
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Speaker 11: I think that is unequivocally true from the GDP data
10:48
Speaker 11: we have seen over the past year and a half.
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Speaker 11: The other issue is if I'm a company looking to
10:52
Speaker 11: onshore my supply chains, I've got to figure out how
10:54
Speaker 11: to build a new factory. There are tariffs on the steel,
10:57
Speaker 11: the aluminum, the cement, the lumber, all of the parts
11:00
Speaker 11: that go into that factory, all of the chips that
11:02
Speaker 11: go into that factory, all of the cooling materials that
11:04
Speaker 11: go into that factory. It is more expensive to onshore,
11:08
Speaker 11: separate from labor costs that differ between countries and kind
11:11
Speaker 11: of all the normal things that companies consider when they
11:13
Speaker 11: decide where to put their supply chains. But right now,
11:16
Speaker 11: if you wanted to onshore operations, it would be more
11:19
Speaker 11: expensive for you to do so. And it's going to
11:21
Speaker 11: take you four years. President Trump called oil execs last
11:24
Speaker 11: week to talk about increasing refining capacity and what he.
11:27
Speaker 1: Could do to do that.
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Speaker 11: And they said, could you please make it easier for
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Speaker 11: us to build? All fine and good, except it takes
11:33
Speaker 11: four to five years to bring on a new refinery
11:35
Speaker 11: or even to fire up an old one. And so
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Speaker 11: I think that the timeline that these actions are on, again,
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Speaker 11: is much less immediate in terms of providing relief than
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Speaker 11: reversing the tariffs and ending the war.
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Speaker 8: With the idea of data centers playing a role here,
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Speaker 8: such a pronounced role, In our economy, there have been
11:53
Speaker 8: questions about the jobs component. There was one example in Virginia.
11:56
Speaker 8: It took 1,500 construction workers to build it and 50
12:00
Speaker 8: to operate it. These massive warehouses are largely empty. humans
12:04
Speaker 8: once they start getting up and running. But we saw
12:07
Speaker 8: the most construction jobs added since January, and people are
12:10
Speaker 8: trying to connect the dots here to data center. Are
12:12
Speaker 8: we finally seeing that come through in the numbers?
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Speaker 11: I think it's true that we need workers to build
12:18
Speaker 11: data centers.
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Speaker 1: You've got to dig a big hole. It's very complicated.
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Speaker 11: I mean, the clean rooms that have to exist on
12:24
Speaker 11: these are very technical. In fact, more than 90% of
12:27
Speaker 11: the plumbing jobs on these job sites are actually union
12:30
Speaker 11: jobs for the politicians who are keeping an eye on that.
12:34
Speaker 11: The big issue is once they're built, the maintenance and
12:36
Speaker 11: servicing of those data centers, the requirements are very small.
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Speaker 11: And it's not like a factory where you've got a
12:42
Speaker 11: bunch of people in there operating machines.
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Speaker 1: They're literally computers. They run on their own. Or it
12:47
Speaker 1: can be serviced remotely.
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Speaker 11: And so I think for communities who are assessing the
12:51
Speaker 11: benefits or lack thereof that these bring, they really are
12:55
Speaker 11: temporary ones, though the effects on electricity bills, on water bills,
12:59
Speaker 11: on noise, those are much more permanent.
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Speaker 2: Mm-hmm.
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Speaker 6: Well, when we consider the timelines here, the Treasury Secretary
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Speaker 6: Scott Besson suggested along the G20 finance ministerial that took
13:10
Speaker 6: place this week that within six months, we could start
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Speaker 6: to see the disinflationary effects of artificial intelligence actually having
13:17
Speaker 6: an impact, that the greater productivity is coming.
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Speaker 1: Does that timeline match with which one is.
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Speaker 6: In your mind?
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Speaker 11: I don't think that's what we've seen in our research
13:26
Speaker 11: or from the street. I think Goldman, Bank of America,
13:29
Speaker 11: lots of firms, lots of macro shops are putting out
13:31
Speaker 11: estimates of this. I think the big issue that everyone's
13:34
Speaker 11: trying to figure out is when will we have an
13:36
Speaker 11: end to the war in Iran? Because if you recall,
13:39
Speaker 11: a couple weeks into the conflict in February, we were
13:42
Speaker 11: all saying, look, if you can end this thing within
13:44
Speaker 11: six weeks, the effects will be short-lived. They'll be max
13:47
Speaker 11: six months. We are now six months into that war.
13:50
Speaker 11: And what we've all been saying for the past six
13:52
Speaker 11: months is the longer it drags out, the longer you
13:54
Speaker 11: see the effects. And so if the AI effects show
13:58
Speaker 11: up in the next six months is really not, I think,
14:00
Speaker 11: the thing I'm keeping an eye on. It's if we
14:02
Speaker 11: can put this war to a close so we can
14:04
Speaker 11: close up shop on those effects within six months.
14:06
Speaker 8: We've got a relative high for gasoline here this late
14:09
Speaker 8: in the season. Diesel's at an all-time high.
14:13
Speaker 3: With that said.
14:15
Speaker 8: What could we see in the final quarter of the
14:17
Speaker 8: year that maybe we've not seen before with the impact
14:21
Speaker 8: of just these gas prices alone?
14:23
Speaker 11: I think we're going to see two things. One, heading
14:25
Speaker 11: into the holiday season, prices are going to be much
14:27
Speaker 11: higher for travel. Prices are going to be much higher
14:30
Speaker 11: for the stuff that goes under the Christmas tree. And
14:32
Speaker 11: that is a combination of both the tariffs that have
14:35
Speaker 11: been flipping on and off switch by the president for
14:38
Speaker 11: the last year and a half. and also from packaging,
14:41
Speaker 11: which is made from petroleum-derived products, so is affected by
14:44
Speaker 11: oil prices. Those shipping rates, I mean, freight shipping rates
14:47
Speaker 11: are through the roof. And so whether you're trying to
14:50
Speaker 11: buy a pint of Ben and Jerry's or a couple
14:53
Speaker 11: of things to put under the Christmas tree, I think
14:55
Speaker 11: parents are in.
14:56
Speaker 1: For higher prices.
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Speaker 8: Can't wait. Liz Pancotti, always great to have you, and
15:00
Speaker 8: on Jobs Day, happy Jobs Day. Thanks for joining us.
15:02
Speaker 8: From the Groundwork Collaborative with Great Analysis... Thanks to Skyler
15:06
Speaker 8: as well from the White House. We're going to play
15:08
Speaker 8: all of this to the panel next as the president
15:10
Speaker 8: gets prepared for Dallas next week and the big midterm convention.
15:15
Speaker 8: Will affordability be on the menu? We'll talk to Rick
15:18
Speaker 8: and Jeannie next, only here on Bloomberg TV and radio.
15:21
Speaker 8: Stay with us on Balance of Power. We'll have much
15:23
Speaker 8: more coming up after this.
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Speaker 6: We close out the trading week on Wall Street and
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Speaker 6: the week here in Washington. And of course, it's going
15:51
Speaker 6: to be a very busy week next week for everyone.
15:54
Speaker 6: We have CPI data coming, but we also have the
15:56
Speaker 6: Republican Midterm Convention being held in Dallas, Texas on Wednesday
16:01
Speaker 6: and Thursday. Just so happens that those are also the
16:04
Speaker 6: days of the first two games of the NFL season.
16:06
Speaker 6: And President Trump himself will be providing the counter-programming to
16:09
Speaker 6: the Super Bowl rematch on Wednesday.
16:12
Speaker 1: It wasn't initially the plan.
16:13
Speaker 6: It was supposed to be J.D. Vance's night to speak,
16:15
Speaker 6: and he Still will. But President Trump, according to the RNC, Joe,
16:19
Speaker 6: is also going to be speaking that night. Then again
16:21
Speaker 6: on Thursday, as they try to rally his base in
16:25
Speaker 6: a year.
16:25
Speaker 1: In which he is not himself on the ballot. That's right.
16:28
Speaker 8: Look, we remember it was the first time we ever
16:30
Speaker 8: saw the nominee show up. Every night of their convention,
16:36
Speaker 8: right when we were in Milwaukee, typically there's a big unveiling.
16:40
Speaker 8: It's almost like seeing the bride before, you know, they
16:43
Speaker 8: come out of the big. The president was up there
16:46
Speaker 8: hugging the flag, waving. It was in the box, remember,
16:48
Speaker 8: with the bandage on the ear tonight. This time he'll
16:50
Speaker 8: be actually speaking on both nights. I thought that J.D.
16:53
Speaker 8: Vance was headlining the first of the two. Does that
16:55
Speaker 8: not happen now?
16:56
Speaker 1: Or maybe he just tees up.
16:58
Speaker 8: Opens for the press. We want to get into all
17:01
Speaker 8: of this. Kayleigh is going to be in Dallas with
17:02
Speaker 8: special coverage, and we'll let you know that. Texas Radio
17:05
Speaker 8: and the Big Beat right here on Bloomberg TV and radio.
17:08
Speaker 8: Julie Fine, our bureau chief, will be there. They're putting
17:10
Speaker 8: the whole band together in Texas. And, of course, we're
17:14
Speaker 8: 60 days out from the midterm election, so there are
17:16
Speaker 8: big questions about what impact this would have, if any.
17:19
Speaker 8: We'll find out from Rick and Jeannie, Bloomberg Politics contributors.
17:22
Speaker 8: Rick is our Republican strategist. Of course, partner at Stonecourt Capital.
17:26
Speaker 8: Jeannie is our Democratic analyst and Democracy Visiting Fellow. at
17:29
Speaker 8: Harvard Kennedy School's Ash Center. You know, Jeannie, there's so
17:32
Speaker 8: much that's going to be on TV. Are Democrats going
17:34
Speaker 8: to try to counter-program Republicans? I mean, there's not going
17:36
Speaker 8: to be any eyeballs left, are there?
17:39
Speaker 13: No way they're not going to counter program, Joe. The
17:42
Speaker 13: one thing that Democrats agree on Donald Trump with is
17:46
Speaker 13: more Donald Trump. So they are not going to counter program.
17:49
Speaker 13: They hope there are more eyeballs on Donald Trump. You know,
17:53
Speaker 13: I keep thinking, you remember how when Rush Limbaugh used
17:55
Speaker 13: to be so popular with liberals and Democrats because just
17:59
Speaker 13: listening to him would.
17:59
Speaker 9: Get them angry?
18:01
Speaker 13: This could be counterproductive for Republicans where you get the
18:05
Speaker 13: only people who listen and get angry are really frustrated
18:08
Speaker 13: lefties who just, you know, that Donald Trump just gets
18:12
Speaker 13: them mad and gets them out to vote.
18:13
Speaker 9: So, no, no counterprogramming. Let him rip. Do two nights.
18:17
Speaker 9: Do more.
18:18
Speaker 13: Democrats will be happy. And Kayleigh, 100 degrees. I hope
18:21
Speaker 13: you're bringing a fan.
18:23
Speaker 1: Wow. Yeah, I am still not happy with the weather forecast.
18:31
Speaker 6: And it does raise the question, Rick, if anyone really
18:35
Speaker 6: wants to be in Dallas, of all places, ahead of
18:38
Speaker 6: the midterms next week, not just because of the weather,
18:40
Speaker 6: but because they have races to run at home, not
18:43
Speaker 6: in Texas in the vast majority of cases. Are they
18:47
Speaker 6: going to be able to fill the American Airlines Center
18:50
Speaker 6: with enough people?
18:52
Speaker 2: You know, there's lots of tactics that you can use
18:55
Speaker 2: to fill a convention hall like that. I put on
19:00
Speaker 2: a lot of national conventions. In fact, I was involved
19:03
Speaker 2: in the last convention in Dallas, Texas. I ran all
19:07
Speaker 2: the delegate selection and political operation on the floor of
19:09
Speaker 2: the convention for Ronald Reagan. And that was the last
19:13
Speaker 2: time we had a Republican convention in Dallas. And so
19:17
Speaker 2: this is the follow-up to that. And sure, I have
19:20
Speaker 2: no doubt they will have what is going to be
19:23
Speaker 2: looking like a full and enthusiastic convention hall. I mean,
19:27
Speaker 2: this is actually what they do well. I mean, Donald
19:31
Speaker 2: Trump has presided over three conventions that he's been the nominee,
19:36
Speaker 2: a record, I might add. And they've all been good, right?
19:41
Speaker 2: They've all started and stopped on time. They've used the
19:45
Speaker 2: time to attack Democrats and promote their agenda and as
19:50
Speaker 2: you pointed out, Joe, Donald Trump in the last convention
19:54
Speaker 2: in Milwaukee got lots of time on air. And I
19:58
Speaker 2: think this will just be a recitation of that. And look,
20:02
Speaker 2: I am shocked, frankly, that the Democrats aren't doing anything.
20:06
Speaker 2: I mean, this is a chip shot. I mean, you
20:09
Speaker 2: get free airtime to promote your own politics. campaigns and candidates.
20:15
Speaker 2: You don't have to attack Donald Trump. Do whatever you
20:17
Speaker 2: want to do, but you're giving that up because you
20:20
Speaker 2: don't want to be in the narrative this campaign season
20:23
Speaker 2: and let Donald Trump have two days. I see lots
20:26
Speaker 2: of them are going to watch the football game, which is,
20:28
Speaker 2: of course, what most of America will do.
20:31
Speaker 3: Yeah, indeed.
20:32
Speaker 8: Well, look, of course, no one will even be nominated
20:35
Speaker 8: at this thing. Jeannie, the problem is those who were
20:39
Speaker 8: nominated in Missouri.
20:42
Speaker 8: Aren't going to know what district they're running in unless
20:44
Speaker 8: the Supreme Court steps in. I'm very confused about this
20:47
Speaker 8: whole situation. The Missouri Supreme Court is blocking the new
20:52
Speaker 8: Republican drawn congressional map, the one that was used for primaries.
20:58
Speaker 8: Unless the Supreme Court, the U.S. Supreme Court steps in,
21:02
Speaker 8: how do we figure out who's running where?
21:06
Speaker 9: That is going to be up to Missouri. And it
21:08
Speaker 9: is a conundrum.
21:09
Speaker 13: But it's important to remember why we're in this conundrum.
21:13
Speaker 13: Republicans wanted this redistricting. They pushed for it.
21:17
Speaker 9: They got it.
21:18
Speaker 13: When 300,000 Missourians stood up and said, wait, we should
21:22
Speaker 13: have a say in who.
21:24
Speaker 9: In how our districts are drawn.
21:25
Speaker 13: The Secretary of State in Missouri sat on that until
21:29
Speaker 13: just a few weeks ago.
21:31
Speaker 9: Then he denied the petition.
21:32
Speaker 13: And now the Missouri Supreme Court, made up of mostly
21:35
Speaker 13: Republican appointees, has said not so fast.
21:38
Speaker 9: And they are right on that.
21:40
Speaker 13: Now, of course, we know Missouri will appeal to the
21:42
Speaker 13: Supreme Court. We don't know if the Supreme Court will
21:44
Speaker 13: take it. Their emergency docket, shadow docket, is pretty full
21:48
Speaker 13: these days. This is really an issue about Missouri state law,
21:52
Speaker 13: Missouri referendums.
21:53
Speaker 9: It should, I think, be left up to Missouri, but
21:56
Speaker 9: they could step in.
21:57
Speaker 13: But, you know, this is the problem of trying to
22:00
Speaker 13: engage in mid-decade redistricting. And just look at Politico's report
22:04
Speaker 13: out of Florida the other day. You've got Florida operatives saying.
22:07
Speaker 9: We might lose at least a few.
22:10
Speaker 13: Of these seats, these four seats we tried to redistrict.
22:13
Speaker 13: We talked about this before. It was really risky for
22:17
Speaker 13: Republicans to engage in this, and they are seeing it
22:19
Speaker 13: now in Missouri.
22:22
Speaker 6: Well, so when we consider Republicans' efforts to draw themselves
22:25
Speaker 6: into more safe seats, could they potentially have the new
22:29
Speaker 6: map backfire on them, not just given this development in Missouri, Rick,
22:33
Speaker 6: but like Jeannie was talking about, if you look at
22:35
Speaker 6: Texas or Florida, for example, how likely is it in
22:39
Speaker 6: your mind that this could come down to just the
22:42
Speaker 6: majority of the House comes down to the case of
22:46
Speaker 6: just a few redrawn or not redrawn seats?
22:49
Speaker 8: Yeah, two things are at play, right?
22:52
Speaker 2: If there's a blue wave, if Democrats, like the current
22:55
Speaker 2: polling indicate, have a congressional ballot advantage of six points
23:00
Speaker 2: or more, then, yeah, it could wipe out a lot
23:04
Speaker 2: of these House seats that have been redrawn and watered
23:08
Speaker 2: down in order to get rid of Democratic districts. If
23:14
Speaker 2: it's not a blue wave, then it's going to probably
23:17
Speaker 2: be more of a state-by-state knife fight between Republicans and Democrats.
23:22
Speaker 2: And those seats will be the target of Democrats to
23:27
Speaker 2: try and throw out those Republicans who are a more
23:30
Speaker 2: vulnerable position because they added Democrats in.
23:33
Speaker 1: To those districts.
23:35
Speaker 2: So honestly, it could wind up backfiring on Republicans, probably
23:42
Speaker 2: be more of a state-by-state impact, not something universal. But
23:48
Speaker 2: I'm watching the macro issue. If it's a blue wave,
23:51
Speaker 2: a lot of these guys are going to go bye-bye.
23:54
Speaker 8: Rick, as someone who's run campaigns, what do you do
23:57
Speaker 8: in a world like this, though, when the Supreme Court
24:01
Speaker 8: in Missouri drops the hammer, do you just suspend all spending?
24:06
Speaker 8: Or you could be advertising and door knocking in the
24:08
Speaker 8: wrong places.
24:10
Speaker 2: Yeah, this is especially problematic because they really did redraw
24:15
Speaker 2: these districts substantially, right? They weren't just a couple of
24:18
Speaker 2: streets and things like that. You know, thousands of residents
24:21
Speaker 2: were moved from one district to another. But look, I mean,
24:26
Speaker 2: most of it is like things like TV. You're still
24:29
Speaker 2: going to run TV in Kansas City. And that TV
24:33
Speaker 2: is going to cover all these districts. So you're just
24:35
Speaker 2: going to pound away at that. The door-to-door stuff is
24:38
Speaker 2: going to be more complicated. Hopefully they get a definition
24:41
Speaker 2: of that before you run out of time to do that.
24:44
Speaker 2: But a lot of the social media and things like
24:47
Speaker 2: that can be broadly delivered to any district. And so
24:53
Speaker 2: a lot of it is generic, running against the Democratic Party.
24:57
Speaker 2: You don't need a district to label on it. So
25:00
Speaker 2: there are plenty of things you can do.
25:01
Speaker 3: I mean, obviously, it's.
25:02
Speaker 2: Not optimal for campaigns to have to steer through this stuff,
25:08
Speaker 2: but it does seem to be more and more litigious
25:10
Speaker 2: in the campaign realm. And so these are becoming more
25:14
Speaker 2: typical than not. In the past, you never saw situations
25:17
Speaker 2: like this.
25:20
Speaker 6: Well, and so late in the game, too, it's multiple
25:22
Speaker 6: situations that are arising. Jeannie, you have this in Missouri,
25:26
Speaker 6: then in North Carolina. They're supposed to start sending in
25:29
Speaker 6: or sending out mail-in ballots to those who want them
25:31
Speaker 6: in the state today. Well, there's still a pending question
25:33
Speaker 6: around the U.S. Postal Service and mail-in ballots. before the
25:37
Speaker 6: Supreme Court, or at least the DOJ has asked the
25:39
Speaker 6: Supreme Court to come down on this. What are state
25:41
Speaker 6: election officials, what are postal workers supposed to do in
25:46
Speaker 6: this situation? What do you do if you're a voter
25:48
Speaker 6: in North Carolina? Can you trust that if you send
25:50
Speaker 6: your ballot in, it's gonna count?
25:53
Speaker 13: Yeah, I don't think so at this point. And I
25:55
Speaker 13: think that is the big concern. You know, we've got
25:59
Speaker 13: North Carolina, as you mentioned, is a September 4th date.
26:02
Speaker 13: You've got Minnesota, Virginia, Vermont, Illinois all coming up in September.
26:07
Speaker 13: Then by October, you have 17 states beginning early voting.
26:11
Speaker 13: This is why the Supreme Court has long held with
26:15
Speaker 13: the Purcell principle. You don't change and they don't get
26:18
Speaker 13: involved in changes to voting rules and elections late in
26:22
Speaker 13: the game, as, of course, Rick just talked about.
26:24
Speaker 9: All of that has blown up now.
26:26
Speaker 13: And the concern is this works to the advantage of
26:29
Speaker 13: a president who has long questioned the sanctity of our elections,
26:32
Speaker 13: because if things go bad for the GOP in November,
26:36
Speaker 13: he's going to say, I tried to bring order to
26:39
Speaker 13: this thing. I tried to get the Supreme Court to
26:41
Speaker 13: uphold my EO.
26:43
Speaker 9: They didn't. I tried to get the SAVE Act passed.
26:45
Speaker 9: They didn't. I tried to get them to stop the
26:47
Speaker 9: Missouri Supreme Court. Maybe they don't. If they don't. And
26:50
Speaker 9: so we can't trust these results in which Republicans have lost.
26:54
Speaker 13: Mike Johnson, as speaker in the lame duck, you can't
26:58
Speaker 13: seat these new candidates. And that is the big concern here. And,
27:02
Speaker 13: you know, I am looking for a question by several
27:05
Speaker 13: reporters over time as to what Mike Johnson says to
27:08
Speaker 13: that and how he'll make that decision because it's up
27:11
Speaker 13: to him.
27:13
Speaker 1: All right.
27:13
Speaker 6: Jeanne Shanzano and Rick Davis, Bloomberg Politics contributors in our
27:17
Speaker 6: political panel on this Friday. Thank you so much. Looking ahead,
27:20
Speaker 6: of course, to the convention next week where President Trump
27:23
Speaker 6: is going to be taking the Qatari Air Force One
27:26
Speaker 6: to Dallas.
27:27
Speaker 1: We'll have more next.
27:28
Speaker 8: Stay with us on Balance of Power. We'll have much
27:30
Speaker 8: more coming up after this.
27:35
Speaker 5: You're listening to the Bloomberg Balance of Power podcast. Catch
27:39
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27:42
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27:45
Speaker 5: Listen on demand wherever you get your podcasts or watch
27:49
Speaker 5: us live on YouTube.
27:52
Speaker 8: On this jobs day. That's confounded a lot of folks
27:55
Speaker 8: here in Washington. By now, you've seen the numbers. They
27:58
Speaker 8: tripled expectations. And there's been, of course, a huge debate
28:01
Speaker 8: over interest rates, and it's now clouded by what we learned. 162,000, Kayleigh, 4.1% unemployment.
28:10
Speaker 8: This blows away even the most ambitious expectations. Big jump
28:15
Speaker 8: in leisure and hospitality. And now many are wondering if
28:19
Speaker 8: this will simply be revised again in a month.
28:22
Speaker 6: Well, considering last month, remember when the initial print was
28:25
Speaker 6: for negative 23,000 payrolls, we got an upward revision to
28:28
Speaker 6: positive 21,000 payrolls. So there is a degree of noisiness
28:33
Speaker 6: in the data. that maybe complicates this picture a little bit.
28:37
Speaker 6: And covering the picture for us here at Bloomberg is
28:39
Speaker 6: Reid Pickard, Bloomberg News U.S. economy team leader, who's here
28:42
Speaker 6: with us in our Washington, D.C.
28:44
Speaker 3: Studio.
28:45
Speaker 1: Reid, good to see you.
28:46
Speaker 6: So when we consider these numbers, not the August number
28:50
Speaker 6: in isolation, but the revision in July, what exactly is
28:54
Speaker 6: going on here? Is this an issue with the way
28:57
Speaker 6: in which this data is collected, or is it really
28:59
Speaker 6: just a strong labor market that continually surprises to the upside.
29:04
Speaker 14: This is a great report. There's not a lot to
29:06
Speaker 14: not like about it. Even when looking at where the
29:09
Speaker 14: job gains were, we saw a lot of breadth there.
29:12
Speaker 14: So it wasn't just a rebound in leisure and hospitality
29:15
Speaker 14: jobs and local education jobs, which can be finicky around
29:19
Speaker 14: the start of the school year. But even excluding those,
29:21
Speaker 14: you saw strength in things like manufacturing and in construction,
29:26
Speaker 14: both of which that are benefiting from the AI build-out.
29:29
Speaker 14: And then that unemployment rate, it held steady even though
29:32
Speaker 14: we saw more people join the workforce. So one thing
29:35
Speaker 14: that we've been seeing, for instance, is that the share
29:38
Speaker 14: of Americans that are either employed or looking for work,
29:42
Speaker 14: participation has really fallen this year. And so seeing that
29:45
Speaker 14: come up at the same time was really strong.
29:48
Speaker 1: If I had to nitpick, you know, one of the
29:51
Speaker 1: kind of only.
29:52
Speaker 14: Weaker parts of today's report was you saw this continued
29:56
Speaker 14: wage pressure. So Thinking about the year-over-year increase in wages
30:01
Speaker 14: was the slowest that we've seen in about five years
30:04
Speaker 14: and really kind of reinforces this picture of Americans who
30:09
Speaker 14: are feeling the weight of inflation.
30:11
Speaker 3: Interesting.
30:12
Speaker 8: To Kaylee's point earlier, though, the noise is pretty hard
30:16
Speaker 8: to ignore. Why has it been so much more difficult
30:19
Speaker 8: to capture accurate readings in real time?
30:22
Speaker 14: So a longstanding challenge that the BLS has had that
30:26
Speaker 14: accelerated around the pandemic and has continued to happen is
30:29
Speaker 14: the decline in survey response rates. So in terms of
30:32
Speaker 14: thinking about these data, there's this trade-off between accuracy and timeliness.
30:39
Speaker 14: And the payrolls report is a really timely report. But
30:44
Speaker 14: that comes with the caveat that there may be revisions
30:46
Speaker 14: in the months to come. And in the case of
30:49
Speaker 14: this month, we certainly saw a big revision to the
30:52
Speaker 14: July number, and just kind of a change in what
30:55
Speaker 14: we are seeing and talking about in terms of the
30:58
Speaker 14: labor market. But certainly paints a pretty clear picture for
31:01
Speaker 14: the Fed next week.
31:03
Speaker 6: Well, that picture will be further animated by inflation report
31:08
Speaker 6: next week. If the labor market, by all accounts, as
31:11
Speaker 6: you say, this is a good report, there's not a
31:13
Speaker 6: ton of holes that you can poke, and it seems
31:15
Speaker 6: to be fine, does that put the focus squarely on
31:17
Speaker 6: the inflation side?
31:19
Speaker 1: Of the mandate? That's what economists are saying.
31:21
Speaker 14: So, you know, this gives Fed officials to really, the
31:25
Speaker 14: opportunity to look at next week's CPI report. The question
31:29
Speaker 14: will be, you know, the CPI report will be a
31:31
Speaker 14: little bit of a choose your own adventure in terms
31:33
Speaker 14: of thinking about seeing, you know, if we see core inflation,
31:37
Speaker 14: which strips out food and energy, if we see a
31:39
Speaker 14: number around 0.2% of an increase. I've seen some economists
31:44
Speaker 14: say that that would suggest that the Fed should hold rates.
31:48
Speaker 14: And I've seen economists say that that means that they
31:50
Speaker 14: should hike. So how much clarity that we ascertain from
31:53
Speaker 14: that is a little unclear at this moment.
31:55
Speaker 8: That's interesting, because I did hear a number. Look, you
31:57
Speaker 8: can see the odds on the market today. A hike
32:00
Speaker 8: is more likely. But not many economists are saying that
32:04
Speaker 8: this single report will change the Fed's mind on this, right?
32:08
Speaker 1: In terms of today's jobs report?
32:09
Speaker 3: In terms of today's jobs report.
32:10
Speaker 1: That's absolutely correct.
32:11
Speaker 8: You'd have to have a pretty wild number of CPI
32:13
Speaker 8: next week to really.
32:14
Speaker 3: Move the needle on this.
32:15
Speaker 14: CPI is really what the focus is on. And we've
32:17
Speaker 14: heard policymakers talk about how much they're looking to the
32:20
Speaker 14: upcoming inflation numbers, too, to make their decisions. So I
32:23
Speaker 14: think a particularly negative report today could have really complicated
32:27
Speaker 14: the decision. But now all focus is on inflation next week.
32:32
Speaker 6: Well, and on the inflation side, as you point to
32:34
Speaker 6: wages that are still not really keeping pace with inflation,
32:38
Speaker 6: wouldn't indicate that there's going to be a wage price
32:40
Speaker 6: spiral anytime soon. Maybe it cools some of their expectation
32:45
Speaker 6: on the inflation side. On the labor force participation rate, 61.6%. Yes,
32:51
Speaker 6: that is up relative to last month's reading, but it
32:54
Speaker 6: is still fairly low. And do we have a sense
32:56
Speaker 6: of what the driving forces are in the relatively lower
33:00
Speaker 6: participation rate and how much of this has to do
33:03
Speaker 6: with some of those economic pressures and not being able
33:05
Speaker 6: to get a high enough wage to deal with an
33:09
Speaker 6: economic reality that we're in right now?
33:10
Speaker 1: It's a great question.
33:11
Speaker 14: It's something that economists can't really seem to agree on.
33:14
Speaker 14: My colleague, Julia Fanzara, has had a great story on
33:16
Speaker 14: this this week, breaking down the different reasons behind this.
33:21
Speaker 14: So there's some short-term potential factors and some cyclical factors.
33:25
Speaker 14: So on the short term, some economists have pointed to
33:28
Speaker 14: just kind of seasonal adjustment issues. On the longer-term side,
33:32
Speaker 14: we've got an aging population, and we also have President
33:36
Speaker 14: Donald Trump's immigration crackdown.
33:38
Speaker 3: And when.
33:40
Speaker 14: So native-born workers, or I guess foreign-born workers, tend to
33:45
Speaker 14: have higher participation rates than native-born workers. So if those
33:48
Speaker 14: folks drop out of the workforce... then that can push
33:51
Speaker 14: down as well. But the challenge is, though, if these
33:55
Speaker 14: factors are short-term, what you could see is the unemployment
33:58
Speaker 14: rate snap back up in a couple months, which would
34:01
Speaker 14: change the picture of the labor market. But if there
34:04
Speaker 14: are these longer-term trends, then kind of more what you
34:08
Speaker 14: see is what you get in terms of the unemployment rate.
34:10
Speaker 8: A couple of months around here means November, so we'll
34:11
Speaker 8: have to see how that pans out, Reid.
34:13
Speaker 9: Thank you.
34:14
Speaker 8: It's great to have you with us on the program.
34:15
Speaker 8: Reid Pickert, A Bloomberg News economy team leader here as
34:19
Speaker 8: we turn to something a little bit different for us
34:21
Speaker 8: on balance of power. And that's the story about the
34:23
Speaker 8: private equity firm Black Sun, which has raised a billion
34:28
Speaker 8: dollars for its prime investment vehicle called Mega Fund One,
34:32
Speaker 8: targeting a $ 7 billion total here. And it just so
34:35
Speaker 8: happens to be the likely NBA expansion fee as they're
34:39
Speaker 8: looking to ignite a new Supersonics franchise in Seattle. Two
34:43
Speaker 8: important names we want you to be introduced to. One
34:46
Speaker 8: of them you've heard from before. Etan Mohamed, CEO of
34:49
Speaker 8: the new private equity firm Black Sun, is with us
34:52
Speaker 8: alongside former boxing champion Roy Jones Jr. It's great to
34:56
Speaker 8: see both of you gentlemen here on Balance of Power
35:00
Speaker 8: on Bloomberg TV and radio. And Etan, I'm going to
35:02
Speaker 8: start with you. You and your team, including Roy, launched
35:05
Speaker 8: Black Sun here with the specific purpose of changing the
35:09
Speaker 8: nature of private equity. Are you in the business as
35:12
Speaker 8: well of making a profit?
35:15
Speaker 15: Of course, we could not be in business without making
35:17
Speaker 15: a profit. But we believe in the opportunity of being
35:22
Speaker 15: able to create compassionate capitalism where we don't see the
35:26
Speaker 15: difference between the distinction of providing good services for human
35:30
Speaker 15: beings as well as for investors.
35:35
Speaker 6: Well, when you bring in the compassion element and the
35:38
Speaker 6: kind of compassion human side of this equation, if you will.
35:42
Speaker 6: Does that explain some of the people you've brought on
35:44
Speaker 6: board here? Why is it that you turn to politicos
35:46
Speaker 6: like former Obama administration alumni for this effort of time?
35:51
Speaker 15: Well, first, it's always an incredible situation where you can
35:55
Speaker 15: be able to have people who have been in really
35:59
Speaker 15: difficult situations that have managed, you know, at the highest
36:02
Speaker 15: levels of power. Not only that, Nick Ratho, is an
36:07
Speaker 15: incredible human being with amazing insights. And being able to
36:12
Speaker 15: leverage the merger between political and some of the financial
36:17
Speaker 15: insights that we bring to the table, it makes for
36:20
Speaker 15: a perfect marriage.
36:23
Speaker 8: Roy, I want to welcome you to Bloomberg.
36:25
Speaker 3: It's great to see you.
36:26
Speaker 8: You were inducted in the Boxing Hall of Fame in 2022,
36:28
Speaker 8: but I'm pretty sure You haven't had to pay for
36:31
Speaker 8: a beer since the 1980s. Someone like yourself, one of
36:34
Speaker 8: the greatest athletes in the world, could be doing a
36:37
Speaker 8: lot of stuff right now. Why private equity?
36:41
Speaker 16: Well, private equity because they're trying to do things to help.
36:45
Speaker 16: level the field in sports. And one sport that needs
36:48
Speaker 16: to feel leveling bad is boxing. There are so many
36:51
Speaker 16: different situations in boxing where the boxers are not getting
36:54
Speaker 16: taken care of, where the boxers are being the guys
36:57
Speaker 16: who are less fortunate at the end of their careers.
37:00
Speaker 16: And Black Sun wants to step in and try to
37:02
Speaker 16: do something about that. And that's something that I've been
37:04
Speaker 16: lobbying for my entire career. So this was a perfect
37:07
Speaker 16: opportunity to line up with a perfect group of people
37:10
Speaker 16: who see the problem and who want to address the issues.
37:15
Speaker 1: Well, how do you consider that then, Roy?
37:19
Speaker 6: When we consider this climate that we are in, this
37:21
Speaker 6: president in the White House, he hosted a UFC fight
37:24
Speaker 6: on the lawn of the White House, as I'm sure
37:27
Speaker 6: you saw. Talk to us about the collision here and
37:30
Speaker 6: what that does to those kind of sports, combat sports
37:34
Speaker 6: in particular, in the public theater.
37:38
Speaker 3: Brings more attention to the situation at hand.
37:40
Speaker 16: A lot of people that are doing these combat sports
37:43
Speaker 16: are not really caring about the athletes the way the
37:44
Speaker 16: athletes should be cared for. For example, they are now
37:47
Speaker 16: trying to change or kind of almost abolish the Muhammad
37:51
Speaker 16: Ali Act, which was put in place to protect the
37:54
Speaker 16: fighters in the sport of boxing.
37:55
Speaker 3: You can't take that and throw it away now because.
37:58
Speaker 16: who's in charge or who's trying to get involved, we've
38:00
Speaker 16: got to be able to take advantage of those situations.
38:03
Speaker 16: Any instruments that are put in place to help protect
38:06
Speaker 16: foxes is an instrument that is definitely needed and well overdue.
38:12
Speaker 8: Tom, let's bring you back in. There are a number
38:13
Speaker 8: of political alumni inside the ranks of Black Sun, many
38:18
Speaker 8: from the Obama administration. This money could have gone to
38:21
Speaker 8: a lot of things. Why private equity for you?
38:25
Speaker 15: Well, Let's face it, private equity, you know, has the
38:29
Speaker 15: hold on the grasp of power, pretty much every major component,
38:33
Speaker 15: not just in America, but globally. The largest private equity
38:36
Speaker 15: firms hold the majority percentage of most of the major
38:40
Speaker 15: public corporations. And like it or let it alone, they
38:44
Speaker 15: wield an enormous amount of power.
38:46
Speaker 9: And we felt that in order.
38:47
Speaker 15: For us to be able to make an impact globally,
38:49
Speaker 15: There needed to be a change in how traditional private
38:53
Speaker 15: equity is used and how they wield their power, not
38:56
Speaker 15: just for excessive profits to be put in a position.
39:00
Speaker 15: We have to strip away things and be able to
39:04
Speaker 15: limit what can go back to community. We want to
39:06
Speaker 15: find ways of being able to leverage community partnerships. as
39:10
Speaker 15: well as things that can be able to benefit our
39:12
Speaker 15: investors also. So we want the mutual benefit that comes
39:16
Speaker 15: with a compassionate outlook on how we treat capital.
39:21
Speaker 6: Well, and when it comes to the sectors being targeted here,
39:24
Speaker 6: sports appears to be a big one, Roy, and something
39:27
Speaker 6: we talk about a lot here on Bloomberg. TV and
39:30
Speaker 6: radio is the disruption of artificial intelligence and what it
39:33
Speaker 6: means for the future.
39:35
Speaker 1: Is sports, live sports, going to be.
39:37
Speaker 6: One area that is going to be insulated from that
39:41
Speaker 6: for some time to come?
39:44
Speaker 16: I think it is because live sports is one of
39:46
Speaker 16: the biggest things going, one of the biggest betting things
39:48
Speaker 16: they do right now. So live sports is a big thing.
39:52
Speaker 16: It's always going to be a big thing. Boxing is
39:54
Speaker 16: one of the oldest sports around. So live sports are
39:56
Speaker 16: going to be always a thing and it will always
39:58
Speaker 16: be something that everybody can benefit from.
40:01
Speaker 3: But you also got to take care of those who
40:03
Speaker 3: are participating.
40:04
Speaker 16: So for so long, everybody's benefited, but the participants have suffered.
40:08
Speaker 16: And to see Black Sun come in with this new
40:11
Speaker 16: idea of merging it, making it to where now boxers
40:14
Speaker 16: can buy back into something that they were a part of,
40:18
Speaker 16: that's never happened before, never been offered before. Nobody's offered
40:22
Speaker 16: a box to buy back into that situation that helped
40:24
Speaker 16: them get to where they got. You know, it just
40:26
Speaker 16: doesn't happen. in a whole different ballgame. We got a
40:32
Speaker 16: lifetime health care. They got pensions we're going to be
40:34
Speaker 16: able to do now. It's so much that they're adding
40:36
Speaker 16: back to the sport of boxing that boxing has needed
40:38
Speaker 16: for years, but nobody addressed.
40:41
Speaker 1: All right.
40:41
Speaker 6: Roy joins Junior and Atan Mohamed joining us from the
40:44
Speaker 6: private equity firm Black Sun. Thanks for being here on
40:46
Speaker 6: Balance of Power on Bloomberg TV and radio.
40:51
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40:54
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40:57
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41:00
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41:04
Speaker 8: at Bloomberg.com.