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Trump, Carney Upbeat on Trade Deal, Fmr. NJ Gov. Chris Christie on Prediction Markets, Data Centers · Balance of Power

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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  Speaker 1: Bloomberg Balance of Power podcast. Catch US Live weekdays at
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• 0:25
  Speaker 2: Watching the markets for US markets that do not have
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  Speaker 2: to adjust to a new reality of a stricter tariff
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  Speaker 2: regime on one of the United States's largest trading partners,
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  Speaker 2: at the very least not yet. Remember, as of ten
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  Speaker 2: fourteen pm last night, there was a very real chance
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  Speaker 2: that those fifty percent levees on billions of dollars of
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  Speaker 2: Canadian goods would go into effect at midnight. Then at
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  Speaker 2: ten fifteen, the President announces a punt on true social
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  Speaker 2: writing quote, I have paused the fifty percent tariffs against
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  Speaker 2: Canada that were scheduled to kick in tomorrow morning for
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  Speaker 2: a three day period based on the fact. The President
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  Speaker 2: says that Canada and the USA, subject to the finalization
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  Speaker 2: of documents, have a deal. And now the Canadian Prime
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  Speaker 2: Minister Mark Carney is weighing in as well, saying on
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  Speaker 2: X that Canada entered these discussions with the best overall
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  Speaker 2: trade terms. We are now moving towards an agreement that
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  Speaker 2: reinforces that Canadian advantage, including by securing the best terms
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  Speaker 2: in each of Canada's most important strategic sectors, and as
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  Speaker 2: we consider the path toward a final deal in the
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  Speaker 2: next three days. Here we turned to Bloomberg Washington correspondent
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  Speaker 2: Tyler Kendall, who is live at the White House and
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  Speaker 2: had a chance to question the President directly about this
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  Speaker 2: earlier today.
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  Speaker 3: Tyler, what do he tell you?
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  Speaker 4: Well, Kayley, at this point, as you're outlining, we're getting
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  Speaker 4: optimistic talk from both President Trump and the Canadian Prime minister,
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  Speaker 4: but the one thing that we're still missing are those details,
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  Speaker 4: those key details on what is actually going to be
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  Speaker 4: in this agreement that ultimately caused this White House to
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  Speaker 4: stop its intent to impose some really punishing tarrifts up
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  Speaker 4: to fifty percent on nearly twenty billion dollars of Canadian goods.
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  Speaker 4: But as you mentioned, I had the chance to ask
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  Speaker 4: President Trump directly to see if we could glean any
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  Speaker 4: sort of details on what may be in that agreement,
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  Speaker 4: give us any update on the negotiations.
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  Speaker 3: Of Canada for a trade deal.
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  Speaker 5: Yeah, we had a very good conversation with the Prime
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  Speaker 5: Minister last night, and we've come to a deal with Canada.
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  Speaker 5: As you know, the fifty percent tariffs across the board
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  Speaker 5: were going on against Canada today and they called yesterday
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  Speaker 5: and they gave us the points that we had to
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  Speaker 5: have very fair deal.
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  Speaker 6: Football.
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  Speaker 5: It's good for everybody, but our farmers are going to
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  Speaker 5: be thrilled, our manufacturers are going to be thrilled. And
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  Speaker 5: basically we have no tariffs going into Canada any with it.
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  Speaker 4: Killy, there's a few points of context here that we
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  Speaker 4: should provide. One these fifty percent threatened levies, we're going
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  Speaker 4: to be under Section three three eighths, which has never
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  Speaker 4: been used before, but does give the President authority to
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  Speaker 4: issue tariffs up to fifty percent if the US feels
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  Speaker 4: that a country is discriminating against US commerce. But I
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  Speaker 4: will say that perhaps the more stick here part of
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  Speaker 4: trade negotiations between the US and Canada comes down to
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  Speaker 4: those Section two thirty two tariffs over national security concerns
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  Speaker 4: related to autos and lumber. I followed up by asking
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  Speaker 4: the President if we could expect any sort of a
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  Speaker 4: lowering of the rate when it comes to those levees
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  Speaker 4: in particular, and he seemed to no at the fact
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  Speaker 4: that there may be some movement. He said things still
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  Speaker 4: need to be finalized, but that ultimately the US needs
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  Speaker 4: to give some things in a negotiating a negotiation too,
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  Speaker 4: that's how the deal is going to work. So that's
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  Speaker 4: something to keep your eyes out on as we try
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  Speaker 4: to figure out what the.
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  Speaker 3: Agreement is really going to look like. All right, Tyler,
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  Speaker 3: we'll let you go in a minute.
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  Speaker 2: I know you've got to get back into the White
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  Speaker 2: House because an important meeting is going to be taking
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  Speaker 2: place in just about an hour. The President meeting with
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  Speaker 2: a number of tech and crypto executives in particular tell
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  Speaker 2: us what we should expect.
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  Speaker 4: So, Kelly, this is being billed as sort of a
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  Speaker 4: preview to a CFTC summit tomorrow that is going to
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  Speaker 4: focus on some of those top issues related to crypto,
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  Speaker 4: digital assets and also prediction markets. There is reporting that
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  Speaker 4: prediction market CEOs will and attendance for this. It is
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  Speaker 4: going to be more of those CEOs related to crypto.
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  Speaker 4: We're still waiting for a final confirmation list. But Kelly,
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  Speaker 4: I don't need to tell you at this point. We
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  Speaker 4: are closely watching what the Senate is going to do
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  Speaker 4: when it comes to that market Structure bill, the Clarity Act.
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  Speaker 4: September fifteenth is the day that we are expecting that
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  Speaker 4: vote to happen. But it's not a done deal, and
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  Speaker 4: that is going to leave open big questions about regulation
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  Speaker 4: for the industry is going to look like going forward.
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  Speaker 2: All right, well, we'll look forward to your coverage from
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  Speaker 2: this afternoon. President Trump slated to speak at two thirty
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  Speaker 2: pm Eastern time on that Bloomberg Tyler Kendall live at
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  Speaker 2: the White House for us, Thank you so much. Now,
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  Speaker 2: as we were talking to Tyler, we did just get
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  Speaker 2: a red headline crossing the Bloomberg terminal pertaining to the
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  Speaker 2: sixteen billion dollars twenty year auction. We just saw from
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  Speaker 2: the United States Treasury more issuance and as we consider
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  Speaker 2: the takedown, it did draw a slightly higher yield than
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  Speaker 2: the pre sale when issued yield at five point one
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  Speaker 2: nine nine percent, drawing instead five point two oh four percent. This,
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  Speaker 2: of course follows the big announcement from the Treasury depart
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  Speaker 2: earlier today is Scott Bessont, just two weeks after having
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  Speaker 2: released the buyback schedule for this quarter, announced that for
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  Speaker 2: long end yields ten to thirty year duration, they're going
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  Speaker 2: to at least double that, a move perhaps to address
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  Speaker 2: the fact that yields at the long end had been
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  Speaker 2: surging toward multi decade high as we hit the highest
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  Speaker 2: level since two thousand and seven on the thirty year
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  Speaker 2: yield earlier this week. So let's talk more about that
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  Speaker 2: now as we turn to Ira Jersey, US rate strategists
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  Speaker 2: for Bloomberg Intelligence. Ira, as we consider the treasuries move today,
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  Speaker 2: is this simply a tactical one or does it address
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  Speaker 2: the fundamentals.
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  Speaker 7: At It does not address the fundamentals one iota. It
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  Speaker 7: really is I think in just an acknowledgment that, hey,
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  Speaker 7: yields are higher than we want it to be as
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  Speaker 7: an administration, and we only have a few tools that
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  Speaker 7: we can really use, particularly in the short term, in
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  Speaker 7: order to try to stop yields from moving significantly higher.
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  Speaker 7: And so they took their shot. Now, you know what's
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  Speaker 7: interesting about this whole thing is not so much that
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  Speaker 7: they did it, because actually we had thought that there
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  Speaker 7: was the possibility that this would happen. But it's like
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  Speaker 7: you said, they didn't do it at the quarterly refunding
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  Speaker 7: announcement two weeks ago. They did it kind of on
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  Speaker 7: a you know, relatively liquid Midsummer day, right, instead of
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  Speaker 7: instead of a couple of weeks ago, we're waiting to November.
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  Speaker 6: Yeah.
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  Speaker 2: Timing, as they say, is everything, also, of course coinciding
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  Speaker 2: with a day at which they were auctioning off more
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  Speaker 2: debt that falls into this duration category. Sixteen billion dollars
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  Speaker 2: of twenty year bonds sold IRA. Howse should we think
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  Speaker 2: about the takedown?
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  Speaker 7: Yeah, it went okay, and then in fact, we do
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  Speaker 7: this grading system from D all the way up to
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  Speaker 7: eight plus syndicate. We gave it a B plus on
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  Speaker 7: our system, primarily because it had pretty good demand. Now,
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  Speaker 7: you know, compared to where these bonds were issued a
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  Speaker 7: month ago, or when when the new bond was issued
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  Speaker 7: in May, at the least refunding auction yields are significantly higher, right,
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  Speaker 7: So I think the higher yields and now the idea
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  Speaker 7: that maybe there's either going to be less bonds issued
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  Speaker 7: or some bonds bought back, you know, enticed investors to
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  Speaker 7: to come in and.
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  Speaker 6: Buy a little bit.
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  Speaker 7: It wasn't exactly at the one issued, but it was
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  Speaker 7: close enough that that is kind of noise rather than
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  Speaker 7: rather than anything major in terms of thinking about how
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  Speaker 7: this auction was taken down.
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  Speaker 2: Well, of course this was the big event for the
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  Speaker 2: bond market in the one pm hour. I wonder if
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  Speaker 2: anything you expect could be a catalyst in the two
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  Speaker 2: pm hour when we get fed minutes irotypically because the
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  Speaker 2: minutes are backward looking, not so much. But I wonder
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  Speaker 2: if this time may be different under Kevin worsh with
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  Speaker 2: a September meeting and Jacksonville frankly looming.
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  Speaker 7: Yeah, it'll be interesting to see what the discussions were
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  Speaker 7: because you did have you know, descents, and there was
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  Speaker 7: obviously some discussion about you know, a variety of topics
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  Speaker 7: that came up. So so for the treasury market, I
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  Speaker 7: think it's the balance sheet. And then you know, if
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  Speaker 7: there was talk about some of these task forces and
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  Speaker 7: some of the information that they've been trying to you
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  Speaker 7: know that maybe some members want to provide to markets
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  Speaker 7: and to the economy as opposed to Kevin Moosh, who
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  Speaker 7: wants to do less communication and you know, give give
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  Speaker 7: someone less for guideless. So I think any details that
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  Speaker 7: we get on that will be interesting, probably not particularly
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  Speaker 7: market moving, at least not yet. But but you know
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  Speaker 7: that could be pretty uh, you know, pretty telling in
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  Speaker 7: terms of what we might get in the future for
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  Speaker 7: you know, balanceee policy and the leg All.
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  Speaker 2: Right, it's a busy day for a US interest rates strategist.
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  Speaker 2: Iur Jersey doing the hard work for us at Bloomberg Intelligence.
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  Speaker 3: Thank you so much.
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  Speaker 2: And of course, as we consider those FED minutes later
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  Speaker 2: on and what they may signal about how the FED
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  Speaker 2: is viewing the inflation outlook, that inflation outlooked is very
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  Speaker 2: well likely to be shaped by the outlook for energy prices,
• 8:35
  Speaker 2: which in turn are likely to be shaped by what
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  Speaker 2: does or does not happen in the Middle East, because yes,
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  Speaker 2: we are still engaged with Iran in some fashion or
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  Speaker 2: at the very least at a standstill with Iran over
• 8:47
  Speaker 2: control of the Strait of Horror moves, a critical energy
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  Speaker 2: conduit and waterway. Recall yesterday, at this time we were
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  Speaker 2: telling you about the president's declaration that there are no
• 8:57
  Speaker 2: ongoing or scheduled talks with a So where does that
• 9:01
  Speaker 2: leave us and where does it leave the President's foreign
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  Speaker 2: policy overall? That's the question we now pose to former
• 9:07
  Speaker 2: Ambassador Daniel freed Wiser Family distinguished fellow at the Atlantic Council,
• 9:11
  Speaker 2: and he served as US Ambassador to Poland as well
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  Speaker 2: as the Assistant Secretary of State for Europe. He'ce here
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  Speaker 2: with me now in our Washington, d C studio. Ambassador,
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  Speaker 2: welcome back to Bloomberg TV and Radio.
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  Speaker 3: It's good to see you.
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  Speaker 6: Thanks for having me.
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  Speaker 2: If we could just begin on the Middle East in
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  Speaker 2: Iran and the President's suggestion that we're not talking to Iran,
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  Speaker 2: even though we should keep in mind his Peace Envoy
• 9:32
  Speaker 2: Jared Kushner, who was just in the Middle East, suggested
• 9:34
  Speaker 2: that talks were on going.
• 9:37
  Speaker 3: If we're not talking, is there ever going to be a.
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  Speaker 2: Real decisive end, any closure to this ongoing conflict, or
• 9:43
  Speaker 2: will it be status quo indefinitely.
• 9:46
  Speaker 8: I'd keep my expectations under control. That is, the Iranians
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  Speaker 8: have little incentive in the near term to settle with
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  Speaker 8: the United States and allow the Strait to reopen. They
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  Speaker 8: sense they have an advantage because they see Trump basically
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  Speaker 8: thrashing around and they're not interested in some sort of
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  Speaker 8: a deal. Our leverage will probably grow as time moves on.
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  Speaker 8: In the medium and especially the longer term. We do
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  Speaker 8: have certain assets the Iranian economy is hurting, the regime
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  Speaker 8: is not popular.
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  Speaker 6: That's not going to.
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  Speaker 8: Help us in the short term. And if there's one
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  Speaker 8: thing we know about President Trump is his impatience. He
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  Speaker 8: doesn't do long term. But I tend to think that
• 10:34
  Speaker 8: Jared Kushner is right. There are probably some contacts going
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  Speaker 8: on again, though I wouldn't expect anything in the near term.
• 10:43
  Speaker 2: Well, we were told in the near term by the
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  Speaker 2: Treasury Secretary last week that we should be watching, potentially
• 10:48
  Speaker 2: this week for greater economic pressure on Iran, a suggestion
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  Speaker 2: that it was going to be unprecedented in terms of
• 10:53
  Speaker 2: the degree to which it would cut a run off
• 10:56
  Speaker 2: from the global economy. I don't know if we should
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  Speaker 2: still expect that to material be announced. But is there
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  Speaker 2: anything in your mind the US could do pulling economic
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  Speaker 2: levers that we have not yet that would change the
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  Speaker 2: calculus for Tehran.
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  Speaker 8: I don't think there's a magic bullet, and I think
• 11:09
  Speaker 8: the Treasury Secretary was engaging in what Trump calls exaggeration,
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  Speaker 8: which means blowing things up and saying.
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  Speaker 9: It for effect.
• 11:20
  Speaker 8: Is there more leverage we could apply against her in
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  Speaker 8: any economy?
• 11:23
  Speaker 10: Oh?
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  Speaker 8: Probably, But I think they've got the workarounds pretty much
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  Speaker 8: in place right now. Our leverage is not great in
• 11:31
  Speaker 8: the short run, it's better in the out years. But
• 11:34
  Speaker 8: that's going to require patients.
• 11:37
  Speaker 2: Well, and as we consider the patients that might be
• 11:39
  Speaker 2: required for this conflict, which of course the President initially
• 11:42
  Speaker 2: said would only take a matter of weeks, he also
• 11:44
  Speaker 2: suggested that ending a separate conflict, the war between Russia
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  Speaker 2: and Ukraine, would be a matter of days, a single day,
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  Speaker 2: if you were re elected. And here we are, obviously,
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  Speaker 2: with that war still ongoing. We spoke about this with
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  Speaker 2: President Biden's national security advisor, Jake Sullivan on this program. Yes,
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  Speaker 2: and here's what he told us about the status of
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  Speaker 2: that war.
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  Speaker 1: Listen.
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  Speaker 11: In the opening days of the war, some of America's
• 12:06
  Speaker 11: foremost bipartisan national security experts came out and said that
• 12:10
  Speaker 11: starting this war with Iran is going to help Putin
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  Speaker 11: because it's going to mean we divert Patriot missiles away
• 12:15
  Speaker 11: from Ukraine. And Putin sees that, and so what's he doing.
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  Speaker 11: He's launching larger and larger salvos of missiles at Ukraine,
• 12:22
  Speaker 11: knowing that Ukraine doesn't have the interceptors to be able
• 12:25
  Speaker 11: to defend itself. We are leaving Ukraine naked to those
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  Speaker 11: kinds of attacks, and this too was very much both
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  Speaker 11: predicted and identified at the beginning of the war.
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  Speaker 6: Is a huge cost.
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  Speaker 2: So when we consider that cost, and to his point,
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  Speaker 2: the relative defenselessness of Ukraine in terms of being able
• 12:43
  Speaker 2: to withstand Russian missile and other barrages of attacks, does
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  Speaker 2: that mean Ukraine right now doesn't have leverage at a
• 12:51
  Speaker 2: proverbial negotiating table, Not that anyone's heading to the negotiating
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  Speaker 2: table eminently.
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  Speaker 8: Ukraine odds of success in its war of national sur
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  Speaker 8: our survival are a lot higher than our chances of
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  Speaker 8: success against Iran. You can see a success materializing. The
• 13:09
  Speaker 8: Russian economy is weak, the Kremlin acts nervous about Russian society,
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  Speaker 8: The Ukrainians are very good at hitting Russian strategic targets
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  Speaker 8: using drones, and yeah, they're developing their own ballistic missiles. Now,
• 13:24
  Speaker 8: you're right, and Jake Sullivan's right that Ukraine is vulnerable
• 13:28
  Speaker 8: to Russian ballistic missile attacks because of the shortage of patriots.
• 13:32
  Speaker 8: But the Ukrainians are going to keep fighting. They're not
• 13:35
  Speaker 8: going to give in because they know the consequences of
• 13:37
  Speaker 8: giving in is basically national extinction. We know the Russian plans.
• 13:43
  Speaker 8: They will eradicate Ukrainian nationhood. They've pretty much said so.
• 13:48
  Speaker 8: The Ukrainians know this, and what frustrates me is that
• 13:53
  Speaker 8: a US success and Ukraine's success would be our success.
• 13:56
  Speaker 8: It would help us a lot all over the world.
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  Speaker 8: We are leaving perfectly good leverage on the table. The
• 14:04
  Speaker 8: sanctions bill, the Graham sanctions Bill on Russia, has its drawbacks,
• 14:08
  Speaker 8: its weaknesses, but it could be a useful tool. It's
• 14:12
  Speaker 8: not perfect, but it's a decent tool. I hope we
• 14:15
  Speaker 8: use it. There is more we could do to help Ukraine.
• 14:18
  Speaker 8: And for God's sakes, we ought to be working with
• 14:20
  Speaker 8: the Ukrainian defendi industry because they're pretty good at this stuff.
• 14:24
  Speaker 8: We need their expertise. They're also a provider of security.
• 14:28
  Speaker 8: So if the US would get a straight position on
• 14:32
  Speaker 8: Ukraine that we want them to prevail and lean into it.
• 14:36
  Speaker 8: It would not be easy, but the chances of a
• 14:39
  Speaker 8: decent outcome, a ceasefire in place with most of Ukraine free,
• 14:43
  Speaker 8: which would be a big strategic defeat for Vladimir Putin,
• 14:47
  Speaker 8: well that's achievable.
• 14:49
  Speaker 2: It is remarkable to hear you suggest that Ukraine, which
• 14:52
  Speaker 2: is making these things in garages and basements in many cases,
• 14:56
  Speaker 2: is in a better position than the American US military
• 15:00
  Speaker 2: forces in the Middle East.
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  Speaker 8: The Ukrainians' lives are on the line, and there's nothing
• 15:06
  Speaker 8: like war time incentive to speed up military technology. There's
• 15:12
  Speaker 8: been a history of the world for a couple one
• 15:14
  Speaker 8: hundred years. War produces rapid results in military technology. The
• 15:20
  Speaker 8: Ukrainians will learned that lesson. We can learn a too.
• 15:23
  Speaker 8: We can help them scale up, they can help us train.
• 15:27
  Speaker 8: This is a win win, and there are people in
• 15:29
  Speaker 8: the Trump administration who understand this, but President Trump himself
• 15:33
  Speaker 8: goes back and forth. We need to focus on success
• 15:37
  Speaker 8: and then the odds of achieving it are much greater.
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  Speaker 3: Just quickly. We're almost at a time, Ambassador.
• 15:42
  Speaker 2: If the House does pass that sanctions bill you mentioned,
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  Speaker 2: how quickly would it have an effect.
• 15:47
  Speaker 8: It could be implemented relatively quickly if the administration wanted
• 15:50
  Speaker 8: to do it. Its effect on Russia's economy will take longer,
• 15:54
  Speaker 8: but the signal will be strong and useful for American interests.
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  Speaker 2: All right, ambassadorcle to see you think. Thank you so
• 16:00
  Speaker 2: much for joining us. As always, Ambassador Daniel Free, the
• 16:03
  Speaker 2: former Ambassador to Poland now an Assistant Secretary of State
• 16:06
  Speaker 2: for Europe. Now Weiser Family Distinguished Fellow at the Atlantic Council.
• 16:10
  Speaker 3: Here with us on Balance of Power.
• 16:11
  Speaker 12: Stay with us on Balance of Power. We'll have much
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  Speaker 12: more coming up after this.
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  Speaker 2: We follow the money in politics, and if you were
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  Speaker 2: following the money in Florida yesterday, you might have thought
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  Speaker 2: that things were favor the retired Lieutenant Colonel Alex Vinman.
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  Speaker 2: As he competed in the Democratic senatorial primary. He had
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• 16:53
  Speaker 2: dollars in the bank relative to the less than one
• 16:55
  Speaker 2: million dollars that Angie Nixon had, and yet it was
• 16:58
  Speaker 2: Nixon who came out victorious, beating Vinman by twelve points.
• 17:03
  Speaker 2: This is noteworthy not just because of the margin of victory,
• 17:06
  Speaker 2: or because of the money factor, but because Nixon is
• 17:09
  Speaker 2: a member of the DSA, she will now be the
• 17:12
  Speaker 2: one taking on the incumbent Republican Senator Ashley Moody in
• 17:15
  Speaker 2: the general election in November. This is how Nixon framed that.
• 17:19
  Speaker 3: Last night, Asley.
• 17:21
  Speaker 13: Moody had a corporate politicians in Washington.
• 17:24
  Speaker 6: They like to label us.
• 17:27
  Speaker 3: It's even trying to make voters afraid of me. That's
• 17:30
  Speaker 3: the band of choice, and they keep making to.
• 17:32
  Speaker 6: Make our lives harder.
• 17:33
  Speaker 9: Right.
• 17:34
  Speaker 13: They look at this movement and they call us extreme,
• 17:38
  Speaker 13: they call us rather, But I think people see through that.
• 17:44
  Speaker 13: I won't let them defind me, and I know you
• 17:47
  Speaker 13: will always know where I'll say.
• 17:58
  Speaker 2: So let's get into that race, and of course the
• 18:01
  Speaker 2: results of the other primary elections that took place last night.
• 18:04
  Speaker 2: As we turned to our political panel, tw Arighi is
• 18:07
  Speaker 2: with me, vice president at Push Digital Group and Republican strategist,
• 18:10
  Speaker 2: alongside Democratic strategist Alison Jaslow, former White House special assistant
• 18:14
  Speaker 2: during the Obama administration. Welcome to you both, Alison. I'll
• 18:18
  Speaker 2: begin with you first, as the Democrat. Heres as you
• 18:21
  Speaker 2: just heard Angie Nixon say, they like to label us.
• 18:23
  Speaker 2: I feel like there might be an argument to be
• 18:25
  Speaker 2: made that she did label herself when she became a
• 18:28
  Speaker 2: member of the DSSA and therefore a socialist. Is she
• 18:32
  Speaker 2: going to be forced to moderate herself if she wants
• 18:34
  Speaker 2: to stand a chance against Ashley Moody in November.
• 18:39
  Speaker 14: I mean that's going to be a personal choice. I
• 18:41
  Speaker 14: you know, advising candidates, they need to stay authentic to themselves, so,
• 18:46
  Speaker 14: you know, to win a general election. I think she
• 18:48
  Speaker 14: should be mindful of the fact that she shouldn't take
• 18:51
  Speaker 14: actions that would also make her vulnerable to not having
• 18:54
  Speaker 14: the best chance to win the race.
• 18:57
  Speaker 9: But you know, this is also a seat.
• 18:58
  Speaker 14: Where the establishment really struggled to recruit a candidate. You
• 19:03
  Speaker 14: might be aware that the gumernatorial nominee is actually a
• 19:08
  Speaker 14: former Republican in Florida right.
• 19:10
  Speaker 3: Now, So.
• 19:12
  Speaker 14: You know, this also was a reached seat for Democrats.
• 19:15
  Speaker 14: So we'll see how things play out from this point forward. Obviously,
• 19:19
  Speaker 14: you know, this is a primary result that surprised a
• 19:23
  Speaker 14: lot of individuals, but I also think that it was
• 19:25
  Speaker 14: a much more complex situation than you see, and maybe
• 19:28
  Speaker 14: some of the top tier seats across the country.
• 19:31
  Speaker 2: Well, So wagh In on this tw if you're Ashley
• 19:34
  Speaker 2: Moody right now, or if you're at the NRSC thinking
• 19:37
  Speaker 2: about where it is strategically you need to spend money.
• 19:39
  Speaker 2: Are you about to spend a lot less of it
• 19:41
  Speaker 2: in Florida?
• 19:42
  Speaker 6: No?
• 19:42
  Speaker 15: And I saw one Florida commentare say, Ashley Moody is
• 19:46
  Speaker 15: prepping to put up Kim Jong un like.
• 19:48
  Speaker 9: Numbers in that race.
• 19:50
  Speaker 15: If you've looked over at one of the Congression of
• 19:52
  Speaker 15: race with Jared Moskowitz, Yeah, he beat his DSA antily
• 19:56
  Speaker 15: and said that at the core DSA is on American
• 19:59
  Speaker 15: These are people who want to abolish prisons.
• 20:02
  Speaker 9: This is the platform of the DSA.
• 20:04
  Speaker 15: Abolish prisons, abolish the United States Senate, free and open borders,
• 20:09
  Speaker 15: et cetera, et cetera. That dog won't hunt in Florida,
• 20:12
  Speaker 15: especially not statewide. This is similar to what happened with
• 20:16
  Speaker 15: the Republican Party in twenty ten with the Tea Party.
• 20:19
  Speaker 15: The Democrats are experiencing that now there are movement candidates
• 20:22
  Speaker 15: on the far end of the party that are winning
• 20:25
  Speaker 15: these primaries and going to fumble some seats that should
• 20:29
  Speaker 15: be competitive. I don't think this Florida race was ever
• 20:31
  Speaker 15: going to be very competitive, but it's playing out in
• 20:34
  Speaker 15: other parts of the country, and that's going to come
• 20:36
  Speaker 15: back and bite them in November. I still think it
• 20:38
  Speaker 15: will probably be a pretty good cycle for Democrats, but
• 20:42
  Speaker 15: they're playing with a lot of fire here.
• 20:43
  Speaker 14: Well.
• 20:43
  Speaker 2: Just as you mentioned Jared moscow Its, he of course
• 20:46
  Speaker 2: faces longer odds after Florida's redrawn map went into place,
• 20:50
  Speaker 2: But do you think he actually has a chance of
• 20:53
  Speaker 2: coming out on top in the Boca area.
• 20:54
  Speaker 9: I think it's going to be tough.
• 20:56
  Speaker 15: Obviously, the redistricting help Republicans quite a bit, but also
• 21:01
  Speaker 15: Florida has been trending redder and redder every cycle that
• 21:05
  Speaker 15: we've seen since President Obama was in office, and I
• 21:08
  Speaker 15: think that will continue. He's clearly trying to moderate himself
• 21:11
  Speaker 15: and he has been doing that on Kapitol Hill a
• 21:13
  Speaker 15: bunch too. He's created a lot of cross aisle friendships,
• 21:17
  Speaker 15: like with Tim Burchett, the Conservative member from Tennessee. So
• 21:22
  Speaker 15: we'll see what happens. But again, Florida isn't I think
• 21:25
  Speaker 15: the focus of where the NRSC or the NRCC is
• 21:28
  Speaker 15: looking coming in November.
• 21:30
  Speaker 2: Yeah, the NRSC might be more interested in spending money
• 21:32
  Speaker 2: in Alaska, which also had its primary last night, Allison.
• 21:36
  Speaker 2: Obviously this one is structured a little differently. The top
• 21:39
  Speaker 2: four candidates regardless of party, advanced to November. But it
• 21:42
  Speaker 2: looks like the top candidate, at least in the primary result,
• 21:45
  Speaker 2: the one who garnered the most support is the Democrat,
• 21:47
  Speaker 2: the former Congressman Mary Peltola, who will be really head
• 21:51
  Speaker 2: to head against the incumbent Dan Sullivan in November, even
• 21:54
  Speaker 2: though others will be on the ballot as well. How
• 21:56
  Speaker 2: much are you heartened by the numbers she was able
• 21:59
  Speaker 2: to put up last night?
• 22:02
  Speaker 14: Well, I would say as much as you know, the
• 22:05
  Speaker 14: Democratic establishment struggled to recruit in Florida, just the opposite
• 22:08
  Speaker 14: happened in Alaska. I don't know if there's anybody who's
• 22:11
  Speaker 14: more Alaska than Mary Peltola.
• 22:13
  Speaker 3: You'll also notice, of course, you know.
• 22:15
  Speaker 14: Four candidates are going to go into the general election,
• 22:17
  Speaker 14: but Dan Sullivan, who's the incumbent, who also has another
• 22:21
  Speaker 14: Dan Sullivan in the race running against him, and Mary Peltola,
• 22:26
  Speaker 14: there was a lot of focus on him and whether
• 22:29
  Speaker 14: he should be in the race or not, the non
• 22:31
  Speaker 14: incumbent Dan Sullivan. But even if you combine the totals
• 22:35
  Speaker 14: that both Dan Sullivan's got last night, they both together
• 22:38
  Speaker 14: don't beat Mary Peltola, and so I think it's a
• 22:40
  Speaker 14: real bright spot on the horizon, especially you know, in
• 22:43
  Speaker 14: a Democratic primary cycle that has been very unpredictable and
• 22:48
  Speaker 14: challenging for Democrats across the board.
• 22:52
  Speaker 2: So, how are you feeling about Alaska as a Republican
• 22:55
  Speaker 2: right now? Tw seeing what Mary Petola was able to
• 22:57
  Speaker 2: accomplish last night.
• 22:58
  Speaker 9: Yeah, I think Alaska's very quirky state.
• 23:01
  Speaker 15: As i Elson pointed out, four people make it to
• 23:04
  Speaker 15: the runoff. I don't really understand why that's happening. The
• 23:07
  Speaker 15: other Dan Sullivan is clearly trying to be a spoiler.
• 23:10
  Speaker 15: He's propped up by Democratic groups, and in the first
• 23:13
  Speaker 15: in the congressional district, the house seat, there is someone
• 23:16
  Speaker 15: who made the runoff who is currently serving a twenty
• 23:18
  Speaker 15: year prison sentence and has never visited Alaska.
• 23:22
  Speaker 9: That is shocking at its core.
• 23:25
  Speaker 15: Barry Potola is definitely a true blue Lasson was a
• 23:28
  Speaker 15: great recruiting pickup for Democrats. But I would remind everybody
• 23:33
  Speaker 15: that one of the main reasons Mary Potola won her
• 23:36
  Speaker 15: House seat is because of the infighting within the Republicans
• 23:39
  Speaker 15: and Sarah Palin who's a friend of hers playing spoiler
• 23:43
  Speaker 15: in that race Alaska. I still believe Will will trend red.
• 23:48
  Speaker 15: He's a little bit soft on his numbers if you
• 23:50
  Speaker 15: compare them to where they were in twenty twenty, but
• 23:53
  Speaker 15: you have to remember in twenty twenty he won that
• 23:54
  Speaker 15: race by twelve point seven points. Dan Sullivan is not
• 23:58
  Speaker 15: a radical a least, He's pretty well respected.
• 24:00
  Speaker 9: In that state, and I think at the end of
• 24:02
  Speaker 9: the day he'll come out on top.
• 24:04
  Speaker 2: I was speaking yesterday on Balance of Power with a
• 24:06
  Speaker 2: strategists who happened to hail from Alaska.
• 24:08
  Speaker 3: She was born there, lived there a lot.
• 24:10
  Speaker 2: Of her life, and she said, basically, take any affordability
• 24:12
  Speaker 2: challenge in the lower forty eight and it is drastically
• 24:15
  Speaker 2: exacerbated in Alaska, just based on geography and how much
• 24:19
  Speaker 2: has to be imported to Alaska essentially. So I wonder
• 24:24
  Speaker 2: if you see this fundamentally, Allison, as being affordability politics,
• 24:29
  Speaker 2: which are obviously cross country in this midterm cycle, as
• 24:31
  Speaker 2: being even more prominently on display in that kind of state.
• 24:36
  Speaker 14: Well, you know, it's also a state that I think
• 24:38
  Speaker 14: is more globally connected in many ways, given the position
• 24:42
  Speaker 14: of Alaska not being where the rest of us reside
• 24:45
  Speaker 14: here in the contiguous United States, that the economic policies
• 24:50
  Speaker 14: of the current administration I think are applying unique pressure
• 24:54
  Speaker 14: in places like Alaska. That makes it a hard sell
• 24:58
  Speaker 14: if you're a member of the President's party need to
• 25:00
  Speaker 14: have your job back in the United States Senate. So
• 25:04
  Speaker 14: you know, I think a combination of sort of the
• 25:07
  Speaker 14: you know, the brass tax of the fact that people
• 25:08
  Speaker 14: are trusting Democrats more as it relates to the economy
• 25:12
  Speaker 14: and or the individuals who are going to actually be
• 25:15
  Speaker 14: fighting a lower cost but also having you know, a
• 25:18
  Speaker 14: unique candidate in Mary Peltola. You don't see this necessarily
• 25:21
  Speaker 14: in other Senate races, but she is very Alaska. She
• 25:26
  Speaker 14: is uniquely positioned to connect with the people there in
• 25:28
  Speaker 14: a way that I think could be the secret sauce
• 25:30
  Speaker 14: in twenty twenty six for her.
• 25:33
  Speaker 2: I want to talk about another state which didn't have
• 25:35
  Speaker 2: a primary yesterday but does have a runoff next Tuesday,
• 25:39
  Speaker 2: and there was a debate last night, and that's South Carolina.
• 25:42
  Speaker 2: This is the race to fill the shoes of the
• 25:43
  Speaker 2: late Senator Lindsay Graham. His seat, of course, is currently
• 25:46
  Speaker 2: held by his sister, Darlene Graham, who is running for
• 25:49
  Speaker 2: it on a permanent basis. She was debating Congressman Ralph
• 25:51
  Speaker 2: Norman last night in tw She was asked in the
• 25:54
  Speaker 2: debate about Taiwan, the South China Sea and a pretty
• 25:58
  Speaker 2: general question about America's nowational security interest in that region,
• 26:02
  Speaker 2: and this is what she answered. I quote her directly,
• 26:04
  Speaker 2: I'm just going to be honest here. I'm not on
• 26:07
  Speaker 2: national security. I'm not that informed on national security, but
• 26:11
  Speaker 2: I do support the military. Is that credentials for a
• 26:16
  Speaker 2: United States Senator?
• 26:17
  Speaker 9: Well, I am biased here.
• 26:19
  Speaker 15: I worked for Senator Graham, for Lindsay Graham, and I
• 26:23
  Speaker 15: know Darlene personally, and I love and respect Darlene Graham
• 26:26
  Speaker 15: in the entire Graham family.
• 26:28
  Speaker 9: That was obviously a very tough answer.
• 26:31
  Speaker 15: At the end of the day, no one's going to
• 26:33
  Speaker 15: replace Lindsey Graham in terms of foreign policy smarts and experience.
• 26:37
  Speaker 9: Ralph Norman won't.
• 26:38
  Speaker 15: Nobody else will pick a person, So it's big, big
• 26:43
  Speaker 15: shoes to fill. Ralph Norman also doesn't exactly have a
• 26:46
  Speaker 15: record of great foreign policy insights either, so we have
• 26:51
  Speaker 15: to set the playing field where it is. Darlene Graham
• 26:55
  Speaker 15: has been in the Senate two for a handful of weeks.
• 26:57
  Speaker 15: Has got a lot done in that short period. If
• 27:00
  Speaker 15: she's a bright woman, a capable woman. That was an
• 27:03
  Speaker 15: unfortunate answer, and I don't really think reflective nor appropriate
• 27:06
  Speaker 15: for that answer. For that response, there is nobody who's
• 27:10
  Speaker 15: going to run for the Senate who isn't already in
• 27:12
  Speaker 15: federal office handling foreign policy or have a military background
• 27:16
  Speaker 15: that's going to be an expert on the self China.
• 27:19
  Speaker 9: See unfortunate answer.
• 27:20
  Speaker 15: Wish it went differently, But I do think she's a
• 27:23
  Speaker 15: capable woman who would be a good senator.
• 27:24
  Speaker 2: Well, I wonder your take on this, Allison, because it's
• 27:28
  Speaker 2: one thing to be honest about areas in which you
• 27:31
  Speaker 2: are not as well informed. It's another to say, either way,
• 27:34
  Speaker 2: you should still elect me to be one of one
• 27:36
  Speaker 2: hundred members of the United States Senate.
• 27:39
  Speaker 3: Was this disqualifying?
• 27:42
  Speaker 14: I mean, Charleston is home to a significant military population
• 27:47
  Speaker 14: and is very important to our national security, especially our navy,
• 27:53
  Speaker 14: And you know, I think that South Carolina deserves a
• 27:56
  Speaker 14: senator who really gets that.
• 27:59
  Speaker 3: You know, her brother.
• 28:02
  Speaker 14: Certainly was very proficient when it came to national security
• 28:07
  Speaker 14: issues and matters of you know, world affairs and I think,
• 28:11
  Speaker 14: you know, disqualifying is something that the voters of South
• 28:14
  Speaker 14: Carolina are going to have to decide, you know. I
• 28:16
  Speaker 14: think the more unfortunate story here is it looks like
• 28:20
  Speaker 14: she will probably maintain her seat in the United States Senate.
• 28:23
  Speaker 14: And are we our country that wants to hand down
• 28:26
  Speaker 14: Senate seats you know, from family members to other family members,
• 28:31
  Speaker 14: or are we the you know, the country of the
• 28:34
  Speaker 14: American dream where anybody can find their way in the
• 28:36
  Speaker 14: US Senate.
• 28:39
  Speaker 2: Of course, we've seen a few political dynasties in our
• 28:41
  Speaker 2: day here in the US. Will leave me their tw Allison,
• 28:44
  Speaker 2: thanks for joining us on this political panel on Balance
• 28:46
  Speaker 2: of Power on Bloomberg.
• 28:48
  Speaker 12: Stay with us on Balance of Power. We'll have much
• 28:50
  Speaker 12: more coming up after this.
• 28:54
  Speaker 1: You're listening to the Bloomberg Balance of Power podcast ketches
• 28:58
  Speaker 1: live weekdays at noon and five Pmstern on Apple, Cockway
• 29:02
  Speaker 1: and Android Auto with the Bloomberg Business App. You can
• 29:05
  Speaker 1: also listen live on Amazon Alexa from our flag Tip
• 29:08
  Speaker 1: New York station just Say Alexa played Bloomberg eleven thirty.
• 29:13
  Speaker 2: President Trump gets set to huddle with the executives from
• 29:15
  Speaker 2: big crypto companies and associated lobbying groups as part of
• 29:19
  Speaker 2: the kickoff for the CFTC's new Innovation Advisory Committee, which
• 29:24
  Speaker 2: will hold its first official meeting on Thursday. It's looking
• 29:27
  Speaker 2: at the agency's efforts on tech and finance and ways
• 29:30
  Speaker 2: in which to guide and regulate those industries. Yet perhaps
• 29:34
  Speaker 2: those not included in this meeting are just as notable
• 29:37
  Speaker 2: as the ones that are. The crypto CEOs will be there,
• 29:40
  Speaker 2: the CEOs of prediction markets will not. This, of course,
• 29:43
  Speaker 2: is as the CFTC is trying to establish itself as
• 29:46
  Speaker 2: the main regulator for prediction markets. A bit of jockeying
• 29:49
  Speaker 2: happening here between federal and state authorities. And I'm joined
• 29:54
  Speaker 2: now by someone who knows this very well and certainly
• 29:56
  Speaker 2: has an opinion on these prediction markets. The former governor
• 30:00
  Speaker 2: New Jersey, Chris Christy, is here with us now on
• 30:02
  Speaker 2: Bloomberg TV and radio. He's an advisor to the American
• 30:05
  Speaker 2: Gaming Association.
• 30:07
  Speaker 3: Governor. Welcome to balance of power.
• 30:09
  Speaker 2: And I do want to get into the policy here
• 30:11
  Speaker 2: with you, But can I just start by asking you first?
• 30:12
  Speaker 2: Are you glad to see that the prediction markets executives
• 30:15
  Speaker 2: are not included in this White House meeting? In this
• 30:18
  Speaker 2: Innovation Advisory Group.
• 30:20
  Speaker 6: Well, Kaylee, thanks for having me on.
• 30:22
  Speaker 10: I wonder why they ever were, why President Trump would
• 30:25
  Speaker 10: ever want to sit with these folks who now have
• 30:28
  Speaker 10: been found to be operating illegally in states all over
• 30:32
  Speaker 10: this country. They've lost eighty five percent of the court
• 30:35
  Speaker 10: cases that have been brought against them, and so you know,
• 30:39
  Speaker 10: the fact is that these are folks that are not
• 30:42
  Speaker 10: going to contribute to the conversation the potential success of
• 30:45
  Speaker 10: the crypto legislation. They're trying to get through their drag
• 30:49
  Speaker 10: on it. And I don't know why, between that and
• 30:52
  Speaker 10: the President's teleprompter scandal that all was predicated on stuff
• 30:58
  Speaker 10: that was on these markets, I don't know why you'd
• 31:01
  Speaker 10: want them there in the first place, and I'm glad
• 31:02
  Speaker 10: he decided not to have them there.
• 31:05
  Speaker 2: And before we talk more about this, I just want
• 31:07
  Speaker 2: to mention the breaking news just crossing the Bloomberg terminal.
• 31:10
  Speaker 2: As we are considering a deal on trade between the
• 31:12
  Speaker 2: US and Canada. People familiar with the matter now telling
• 31:15
  Speaker 2: Bloomberg that the US is set to cut in half
• 31:17
  Speaker 2: the tariffs on Canadians steel and aluminum as part of
• 31:20
  Speaker 2: this trade deal. That they caution that that deal is
• 31:23
  Speaker 2: still not yet finalized and will continue to track that
• 31:25
  Speaker 2: for you here on Bloomberg. I'm sure there are bets
• 31:28
  Speaker 2: somewhere out there on CALSHI or Polymarket Governor about whether
• 31:31
  Speaker 2: or not there will be a trade deal between the
• 31:34
  Speaker 2: US and Canada. To your point on what we saw
• 31:36
  Speaker 2: with the teleprompter operator, you could point to the member
• 31:38
  Speaker 2: of the United States military that was involved in the
• 31:40
  Speaker 2: raid in Venezuela and was able to reap financial reward
• 31:44
  Speaker 2: on that before he faced charges. When we think about
• 31:47
  Speaker 2: issues like that, is that actually lending to the argument
• 31:51
  Speaker 2: that maybe you do need to see federal oversight over
• 31:54
  Speaker 2: these markets and who can do what how they can operate,
• 31:56
  Speaker 2: rather than it being on a state by state basis.
• 31:59
  Speaker 2: Is the CFTC actually the right party to handle this.
• 32:03
  Speaker 6: They're absolutely the wrong party to handle it. And here's why.
• 32:06
  Speaker 10: First off, any of these other issues that we've just
• 32:08
  Speaker 10: talked about, while they're serious as individual cases, they're a distraction, Kayley,
• 32:15
  Speaker 10: because between eighty to ninety percent of what the predictions
• 32:19
  Speaker 10: markets do is sports betting, and they are sports books,
• 32:24
  Speaker 10: that's what they are. And these other things are a
• 32:27
  Speaker 10: distraction that allow them to make an argument. But in
• 32:29
  Speaker 10: the end, these are the folks who, as we're getting
• 32:32
  Speaker 10: ready to send our kids back to college, they market
• 32:36
  Speaker 10: directly to college students and call what they do investments. Well,
• 32:41
  Speaker 10: you know, a bet on the NFL is not an investment.
• 32:45
  Speaker 10: And so while these other things as individual things, that
• 32:48
  Speaker 10: teleprompter case or the military matter, our series individual cases,
• 32:54
  Speaker 10: that's not why Calshi, Pollymarket and others are in business.
• 32:58
  Speaker 10: They're in business because eighty to ninety percent of their
• 33:01
  Speaker 10: business comes from sports betting. They're sports books that are
• 33:05
  Speaker 10: regularly evading state regulation, and they've been found to be
• 33:10
  Speaker 10: operating illegally in many states. In fact, they're operating in
• 33:13
  Speaker 10: a state like Texas, who doesn't allow sports betting of
• 33:15
  Speaker 10: any kind. So these are legal actors, and this other stuff,
• 33:20
  Speaker 10: while important for those individuals, is a distraction to the
• 33:23
  Speaker 10: overall issue in my view.
• 33:26
  Speaker 2: Well, of course, you're familiar with the legal fight over
• 33:28
  Speaker 2: sports betting and getting more states to allow it. That
• 33:31
  Speaker 2: fight went all the way to the Supreme Court, and
• 33:33
  Speaker 2: I wonder if you expect this one too as well,
• 33:36
  Speaker 2: and given the Court's current composition, if you feel like
• 33:39
  Speaker 2: the Court would actually be on your side on this one.
• 33:42
  Speaker 10: Look, you know, I was the person who bought Christy
• 33:45
  Speaker 10: versus the NCAA, which established the right for states to
• 33:49
  Speaker 10: permit sports gambling if they if they chose to do so.
• 33:53
  Speaker 10: That was a six year fight. I think this one
• 33:55
  Speaker 10: will be shorter, and I believe when you look at it,
• 33:58
  Speaker 10: eighty five percent, Kayley, of the cases, as I said before,
• 34:02
  Speaker 10: that have been brought the prediction markets have lost, and
• 34:05
  Speaker 10: I don't expect that that losing streak will do anything
• 34:08
  Speaker 10: but continue. If they go up to the United States
• 34:11
  Speaker 10: Supreme Court on this, and if that's what the States
• 34:13
  Speaker 10: need to do, that's what they should do, because let's
• 34:16
  Speaker 10: face it, they've already cost the States one point three
• 34:20
  Speaker 10: billion dollars in revenue, in tax revenue that would have
• 34:24
  Speaker 10: come otherwise to the states that's being siphoned off by
• 34:28
  Speaker 10: the activities of these prediction markets, that serious business in
• 34:32
  Speaker 10: these states.
• 34:33
  Speaker 6: I could tell you.
• 34:33
  Speaker 10: As a governor, losing big revenue like that means either
• 34:37
  Speaker 10: programs have to be cut or other taxes have to
• 34:40
  Speaker 10: be increased, and that's only happening because of the selfishness
• 34:43
  Speaker 10: and the illegal conduct of these markets.
• 34:47
  Speaker 2: I'd like to talk Governor if we can, about another
• 34:49
  Speaker 2: issue that could end up before the Supreme Court. It's
• 34:52
  Speaker 2: the Assistant Attorney General for Civil Rights, Hermie Dylan, told
• 34:55
  Speaker 2: me this week that she'd be willing to take it
• 34:57
  Speaker 2: that far. This fight over the DOJ trying to get
• 34:59
  Speaker 2: access to states voter roles, and she pointed specifically to
• 35:03
  Speaker 2: the state of New Jersey. Of course, the current governor,
• 35:06
  Speaker 2: Mikey Cheryl, disclosing that there had been thousands of individuals
• 35:09
  Speaker 2: misregistered asked citizens and therefore as potential voters in New
• 35:14
  Speaker 2: Jersey's systems. And this got to the overall question of
• 35:18
  Speaker 2: non citizens voting. This is what Hermeat Dylan told me, Governor,
• 35:21
  Speaker 2: and then I'll have you respond.
• 35:23
  Speaker 16: I think the scope is actually much larger of non
• 35:26
  Speaker 16: citizen voting. And these are people who flagged themselves according
• 35:30
  Speaker 16: to New Jersey, Hi, I'm not a citizen, and then
• 35:32
  Speaker 16: they went ahead and voted. And so we don't know
• 35:36
  Speaker 16: the scale of this problem because two thirds of the
• 35:38
  Speaker 16: states are refusing to cooperate with the Department of Justice's efforts.
• 35:42
  Speaker 16: We would love for all the states to cooperate with us,
• 35:44
  Speaker 16: but in the states that have cooperated with US, there
• 35:47
  Speaker 16: are hundreds of thousands of dead people on the voter roles,
• 35:50
  Speaker 16: and there are tens of thousands of people who are
• 35:52
  Speaker 16: not citizens on the voter rolls.
• 35:55
  Speaker 2: And I'm wondering, Governor, if you saw evidence of this
• 35:57
  Speaker 2: in terms of non citizen voting activity while you leading
• 36:00
  Speaker 2: the state of New Jersey, and if you were still
• 36:01
  Speaker 2: there in the Governor's mansion, would you be cooperating with
• 36:04
  Speaker 2: the DJ on this Well a few things.
• 36:06
  Speaker 10: First off, No, because the system that has helped to
• 36:09
  Speaker 10: create this problem where people are automatically registered to vote
• 36:14
  Speaker 10: when they go to get a driver's license in the state,
• 36:17
  Speaker 10: didn't happen when I was governor for two reasons. One,
• 36:20
  Speaker 10: I didn't let non citizens get driver's licenses when I
• 36:25
  Speaker 10: was governor. In two, we didn't permit that type of
• 36:28
  Speaker 10: automatic registration to vote. And the reasons at the time
• 36:32
  Speaker 10: that I stated were because you could have errors like
• 36:35
  Speaker 10: what's happened here in New Jersey subsequently when those laws
• 36:38
  Speaker 10: were permitted. So I think they were bad decisions by
• 36:41
  Speaker 10: my successor, Governor Murphy, and I think Governor Cheryl is
• 36:44
  Speaker 10: now paying the price for it. I think the good
• 36:47
  Speaker 10: news is that Governor Cheryl has hired my former attorney
• 36:50
  Speaker 10: general and former United States Senator Jeff Kieza, a Republican,
• 36:55
  Speaker 10: to lead the investigation in the state into whether there
• 36:58
  Speaker 10: are more people who are non state this is where
• 37:00
  Speaker 10: registered to vote and to fix the problem. And I
• 37:03
  Speaker 10: have complete confidence in Senator Kisa that he'll lead that
• 37:07
  Speaker 10: investigation with integrity and honesty and disclose it. But I
• 37:11
  Speaker 10: am also, as a former governor, very jealous about the
• 37:15
  Speaker 10: rights of the states unvoting. These are not federal issues, Kayley.
• 37:21
  Speaker 10: This is for the states to.
• 37:23
  Speaker 6: Take care of.
• 37:24
  Speaker 10: And I don't think the DOJ should be involved in
• 37:26
  Speaker 10: the middle of this, and I don't know what their
• 37:29
  Speaker 10: motivation really is outside of political In the end, the
• 37:32
  Speaker 10: states should be doing this themselves. We did it when
• 37:35
  Speaker 10: I was governor, and I trust that Senator kys and
• 37:38
  Speaker 10: now being brought on board by Governor Cheryl, will expose
• 37:42
  Speaker 10: all this information to the public and then the governor
• 37:46
  Speaker 10: and the legislature will have to figure out how to
• 37:47
  Speaker 10: fix it. But this won't be in the dark anymore.
• 37:50
  Speaker 10: And guarantee you that Jeff Kiezon will bring it to light.
• 37:54
  Speaker 3: Well.
• 37:54
  Speaker 2: To your point, Governor, on states being in charge of
• 37:57
  Speaker 2: their own elections, it's not just the pursuit of a
• 37:59
  Speaker 2: voter in from the DOJ. They're also sending, according to
• 38:03
  Speaker 2: Harmey Dillon or preparing to a thousand election monitors across
• 38:06
  Speaker 2: the country to different voting locations for these midterms. And
• 38:10
  Speaker 2: I know you said you don't know exactly what the
• 38:12
  Speaker 2: motivations are, but do you suspect that this could be
• 38:15
  Speaker 2: gearing up all towards something that could be contesting the
• 38:19
  Speaker 2: results of November.
• 38:21
  Speaker 10: Well, one never knows, Kayley, what could happen in that regard,
• 38:24
  Speaker 10: but I will tell you this, there will be a
• 38:26
  Speaker 10: fight over those monitors being at state polling places as well,
• 38:32
  Speaker 10: because they've got to articulate a reason, a civil rights reason,
• 38:39
  Speaker 10: why to have those folks there. And I can tell
• 38:42
  Speaker 10: you know, I don't see what that civil rights reason is.
• 38:46
  Speaker 10: The DOJI will have to articulate it, because I guarantee
• 38:49
  Speaker 10: you if they try to send in monitors into individual states,
• 38:53
  Speaker 10: and whether they're red or blue states, it doesn't matter.
• 38:56
  Speaker 10: Governors want to run their elections, not turn it over
• 39:00
  Speaker 10: to the federal government. And quite frankly, you know, whether
• 39:03
  Speaker 10: it's been a Republican or a Democratic president over the
• 39:07
  Speaker 10: last number of years, do we really think somehow the
• 39:09
  Speaker 10: federal government would run elections better than state governments. I
• 39:13
  Speaker 10: don't think so, and I think there'll be fights about
• 39:16
  Speaker 10: that as well well.
• 39:19
  Speaker 2: Speaking of a fight not over the vote and the
• 39:21
  Speaker 2: voting systems, but over an issue that people will be
• 39:25
  Speaker 2: thinking about. I would imagine when they go to vote.
• 39:27
  Speaker 2: Data centers the nimby issue of this cycle. Governor, they
• 39:30
  Speaker 2: seem to be. We're seeing more governors, including Josh Shapiro
• 39:33
  Speaker 2: in Pennsylvania just yesterday, taking action to regulate them, put
• 39:37
  Speaker 2: restrictions around them. Others like Kathy Hochele have resorted to
• 39:41
  Speaker 2: just a flat out moratorium. As someone who was a
• 39:45
  Speaker 2: state executive, you've run a state, how would you be
• 39:47
  Speaker 2: thinking about the data center issue right now? How do
• 39:50
  Speaker 2: you balance the potential economic opportunity they present with the
• 39:54
  Speaker 2: challenges communities think they might face because of them.
• 39:57
  Speaker 10: Well, let's call the data center issue what it is.
• 40:00
  Speaker 10: It's an energy issue, Kayley, That's what it is, because
• 40:04
  Speaker 10: they use enormous amounts of energy, and in my state,
• 40:07
  Speaker 10: for instance, energy costs. Electric costs are through the roof
• 40:10
  Speaker 10: and they were the single biggest issue in the last
• 40:12
  Speaker 10: gubernatorial race here in New Jersey, and the current governor
• 40:15
  Speaker 10: is still struggling to try to deal with it, and
• 40:17
  Speaker 10: as someone who receives an electric bill every month from
• 40:20
  Speaker 10: my home, doesn't seem any better to me at the moment.
• 40:23
  Speaker 10: And so what people are really worried about here is
• 40:26
  Speaker 10: that if they're going to be data centers, that they
• 40:28
  Speaker 10: need to pay for the electricity they're going to consume
• 40:32
  Speaker 10: and be able to do it in a way that
• 40:34
  Speaker 10: it doesn't affect negatively the market for homeowners and other
• 40:38
  Speaker 10: small businesses and see their rates go up. And so
• 40:42
  Speaker 10: that's really the issue here more than anything else, is electricity.
• 40:47
  Speaker 6: And the use of electricity in those places.
• 40:49
  Speaker 10: And so what we need to do is to figure
• 40:52
  Speaker 10: out a way how the people who'll be making a
• 40:54
  Speaker 10: profit off these data centers, those companies need to make
• 40:58
  Speaker 10: sure that they absorb the call costs that they put
• 41:01
  Speaker 10: on these communities.
• 41:02
  Speaker 6: And secondly, you know, we can't.
• 41:05
  Speaker 10: Walk away from the idea that there is going to
• 41:07
  Speaker 10: be economic development and job creation by these But as
• 41:11
  Speaker 10: a governor, what I would attempt to do is to
• 41:13
  Speaker 10: make sure that the people who are creating these new
• 41:15
  Speaker 10: market conditions which could raise costs for homeowners and small businesses,
• 41:20
  Speaker 10: that they pay to bring those costs down. And if
• 41:23
  Speaker 10: you want to operate in the state, you need to
• 41:25
  Speaker 10: bring those costs down and then that helps to create
• 41:28
  Speaker 10: that opportunity and then create jobs, which will be good
• 41:31
  Speaker 10: for the state and good for its citizens. But you
• 41:34
  Speaker 10: can't just have the job creation and let electricity prices
• 41:37
  Speaker 10: go through the roof, because if you do, that's going
• 41:40
  Speaker 10: to harm small business and that's going to harm regular
• 41:43
  Speaker 10: citizens who are trying to heat or cool their homes.
• 41:47
  Speaker 6: Those prices are already.
• 41:48
  Speaker 10: Too high because of a whole bunch of things, including
• 41:51
  Speaker 10: the war in Iran and some of the infrastructure problems
• 41:54
  Speaker 10: we have in this country. So as a governor, what
• 41:56
  Speaker 10: I would be doing is trying to make sure those
• 41:58
  Speaker 10: responsible keep the market where it is or even lower
• 42:02
  Speaker 10: for homeowners and small businesses.
• 42:05
  Speaker 2: All right, Governor, great to get your perspective on this
• 42:08
  Speaker 2: and other issues as well, including prediction markets. The former
• 42:11
  Speaker 2: Republican governor of New Jersey, Chris Christy, now an advisor
• 42:14
  Speaker 2: to the American Gaming Association.
• 42:17
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• 42:20
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• 42:26
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• 42:30
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