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Trump Shifts Message to the Economy · Balance of Power

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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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0:25
Speaker 2: We're here in Washington, where, of course we're keeping you
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Speaker 2: updated on what we hear from the administration around the
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Speaker 2: deal with Iran that is in the process of being negotiated,
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Speaker 2: and what we're hearing about that deal from those who
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Speaker 2: are concerned here in DC. That includes Senator Roger Ricker Wicker,
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Speaker 2: who of course heads up important committee in the Senate
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Speaker 2: that oversees the US Armed Forces, who just told our
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Speaker 2: colleagues on Capitol Hill that he doesn't think iron deserves
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Speaker 2: any sanctions relief, having already made clear that he has
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Speaker 2: hesitations about what the US is trying to do here diplomatically,
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Speaker 2: but sank relief is what Iran has already received. We
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Speaker 2: saw the waivers for Iranian energy exports for sixty days
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Speaker 2: the period of course of these negotiations, and now there
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Speaker 2: is discussion on the unfreezing of assets as Iran says
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Speaker 2: it will be having about twelve billion dollars in assets
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Speaker 2: and two tranches unfrozen. President Trump says the US will
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Speaker 2: control that, something that Iran disputes. And here's how the
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Speaker 2: President answer to that in the Oval Office yesterday.
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Speaker 3: If the sanctions go out, money is going to be
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Speaker 3: put into this country. All that money's coming back in
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Speaker 3: the form of purchases of food, which they desperately needed.
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Speaker 4: Can you assure that they're ideas won't use profits from
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Speaker 4: oil sales to three buildings.
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Speaker 3: Those charity, Well, then that's supposed to be doing that,
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Speaker 3: so I will say, but they're supposed to use money
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Speaker 3: to buy.
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Speaker 5: Food for the people.
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Speaker 6: Of course, Iran now says twelve billion dollars in frozen
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Speaker 6: funds set to be released two installments six billion dollars each.
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Speaker 6: That's coming from Iran, not the administration. Of course, that
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Speaker 6: money was supposed to be tied to improved behavior, meeting
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Speaker 6: certain milestones.
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Speaker 5: And that's where we start with.
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Speaker 6: Bloomberg's Tyler Kendall, our Washington correspondent on the north lawn
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Speaker 6: of the White House. Are we hearing anything about this
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Speaker 6: money today from the administration, Tyler, Iran makes it seem
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Speaker 6: like the checks are already in the mail.
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Speaker 4: Well, Joe, at this point, we hadn't gotten confirmation from
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Speaker 4: this White House, including on the amount of Iranian assets
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Speaker 4: that will be unfrozen. President Trump didn't have the chance
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Speaker 4: to talk to press here before he headed out to
2:28
Speaker 4: Pennsylvania because there's a bad weather call due to the
2:31
Speaker 4: rain in Washington, d C. So he just headed straight
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Speaker 4: to Joint Bass Andrews. We didn't get that post though,
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Speaker 4: as you mentioned on truth Social earlier today, where President
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Speaker 4: Trump did seem to indicate that an unfreezing of Iranian
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Speaker 4: assets will be in the pipeline, but that that money
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Speaker 4: will only be tied towards going towards US agricultural purchases.
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Speaker 4: This is something that we heard the Iranian Foreign Minister
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Speaker 4: dispute earlier today, saying that ultimately Iran will be able
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Speaker 4: to quote freely use these assets as they wish. And
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Speaker 4: we should point out that in the text of the
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Speaker 4: memorandum of understanding, it is our understanding that it does
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Speaker 4: designate that the Iranian Central Bank can specify the beneficiaries
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Speaker 4: of these unfrozen funds. It's going to be just one
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Speaker 4: of the threads that we watch moving forward. Here where
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Speaker 4: there seems to be some discrepancy, at least publicly between
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Speaker 4: the US and Iran, as you mentioned. Of course, this
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Speaker 4: White House, though, has maintained that any such financial benefits
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Speaker 4: will ultimately accrue over time. They will be based on progress.
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Speaker 4: That includes this temporary sanction waiver that we are seeing
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Speaker 4: for Iranian crew to hit the market, that is for
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Speaker 4: that sixty day period for this extension of the ceasefire.
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Speaker 2: Yeap, and of course President Trump was pointing out nineteen
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Speaker 2: million barrels of oil flowing out of the straight of
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Speaker 2: Horror moves, Tyler. But there is a major question as
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Speaker 2: to what happens after sixty days with the strait specifically,
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Speaker 2: and whether or not there will be tolls, fees, for
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Speaker 2: administrative costs, whatever you want to call it. I would
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Speaker 2: imagine that's something that the Secretary of State Market Rubio
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Speaker 2: is going to be discussing with other golf states on
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Speaker 2: his trip this week.
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Speaker 4: Definitely, Kaye. Also, when you look at analysis that shows
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Speaker 4: us that if any such tolls were ultimately imposed in
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Speaker 4: the straight over removes, our golf allies would be the
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Speaker 4: ones paying the brunt of them. As we start to see,
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Speaker 4: as you mentioned, these flows tick up. President Trump saying
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Speaker 4: nineteen million barrels crossed yesterday. That is in line with
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Speaker 4: pre conflict levels, closer to about twenty million barrels that
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Speaker 4: used to pass per day before the war began. Secretary
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Speaker 4: of State Mark Rubio has this regional tour. He's going
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Speaker 4: to be in Kuwait, the UAE, and Bahrain, of course,
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Speaker 4: major producers trying to transit through the strait. Just yesterday
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Speaker 4: we had reporting from Bloomberg News that four empty LNG
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Speaker 4: tankers were making their way back to Qatar, in the
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Speaker 4: largest number of such tankers that we've seen transit so
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Speaker 4: far since the cease fire began. Definitely going to be
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Speaker 4: something to watch here. I'll also point out that, of
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Speaker 4: course Kaylee, the Secretary of State, is going to be
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Speaker 4: trying to reassure our regional allies that the US is
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Speaker 4: pushing for those curves when it comes to Iran's nuclear
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Speaker 4: program and the other big headline that we've been tracking
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Speaker 4: today appears to be a discrepancy when it comes to
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Speaker 4: the future of what inspections are going to look like,
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Speaker 4: with Iran disputing that they made the concession that we
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Speaker 4: could see inspections as soon as this week. According to
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Speaker 4: President Trump.
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Speaker 2: All right, Bloomberg's Tyler Kendall live on the rainy north
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Speaker 2: lawn of the White House on this Tuesday, Thank you
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Speaker 2: so much. And of course, as we consider energy flowing
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Speaker 2: out of the Strait of Horror moves where prior to
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Speaker 2: this conflict a fifth of global energy supplies flowed out
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Speaker 2: of it, of course is really the crux for the
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Speaker 2: direction of oil prices. There was twenty million barrels a day, Joe,
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Speaker 2: as you point out, prior to this conflict, each and
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Speaker 2: every day that was flowing through the strait. And the
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Speaker 2: question is whether or not we're going to be able
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Speaker 2: to sustainably get back to those levels and therefore see
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Speaker 2: the kind of oil prices we saw prior to the launch.
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Speaker 6: Of Operation Every Heart nineteen million to your point, as
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Speaker 6: the President suggested on truth socially, he calls that an
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Speaker 6: all time record, which clearly it's not. The IEA said
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Speaker 6: we were at just over twenty million barrels a day
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Speaker 6: at that point. But I'll tell you what, oil prices
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Speaker 6: once again today are heading lower. We're at about seventy
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Speaker 6: three dollars WTI, just shy of seventy seven for Brent
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Speaker 6: down almost one to little more than one.
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Speaker 5: Percent for both.
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Speaker 6: Despite the news, really nothing has actually changed other than
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Speaker 6: the fact that we can say the Strait is open.
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Speaker 2: Well, yes, and of course that's something that President Trump
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Speaker 2: wants to herald as he points to the fact that
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Speaker 2: oil prices are going lower, as he did in the
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Speaker 2: Oval Office yesterday.
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Speaker 3: The way we're doing it, we have the opposite of
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Speaker 3: a depression. We're doing really well. The numbers are incredible.
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Speaker 3: The oil is at a level that nobody's ever seen before.
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Speaker 3: Oil prices are way down, I think, very comparable to
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Speaker 3: what we're setting records. We have the strongest ecademy we've
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Speaker 3: ever had.
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Speaker 2: So for more on those oil prices specifically, we turn
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Speaker 2: now to the President of the American Petroleum Institute, Mike Summers,
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Speaker 2: who is here with us in our Washington, d C studio. Mike,
6:58
Speaker 2: welcome back to Bloomberg TV and Radio.
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Speaker 5: Great to be with you.
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Speaker 2: ABI just put out a new energy security framework, American
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Speaker 2: Energy Security Framework, and part of this you have in
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Speaker 2: there is working with allies in the Persian Gulf to
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Speaker 2: accelerate opportunities to reduce reliance on the straight of for moves.
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Speaker 2: How quickly can that reliance be reduced or are we
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Speaker 2: already there? Due to the fact that the Strait was
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Speaker 2: effectively closed for months, it is.
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Speaker 7: Not too early for us to start thinking about what
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Speaker 7: we should do after this crisis is over, which is
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Speaker 7: what our American Energy Security Framework is all about. It's
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Speaker 7: about providing resilience for the energy system that clearly needs it.
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Speaker 7: What we've seen over the course of the last three
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Speaker 7: months with the Straight being closed, of course, has been
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Speaker 7: a price hike in oil, But at the same time,
7:43
Speaker 7: it's also shown us that there's a reckoning going on
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Speaker 7: right now between where we get our energy and where
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Speaker 7: we should be getting our energy. So the focus of
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Speaker 7: our framework is really on three things. Increasing supply here
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Speaker 7: in the United States and throughout the world, building infrastructure
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Speaker 7: that the world's going to need to move that energy,
8:01
Speaker 7: and finally, providing resilience to the existing energy structure. So
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Speaker 7: what we're talking about is how do you build out
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Speaker 7: infrastructure not just here in the United States, but also
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Speaker 7: in the Middle East so that we don't have to
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Speaker 7: traverse the Strait as much as we currently do to
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Speaker 7: get the products that Americans need every single day.
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Speaker 6: Okay, Mike, So let's walk through a couple of these,
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Speaker 6: because your timing here is critical as we have just
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Speaker 6: lived through this extended closure of the Strait and it
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Speaker 6: starts here at home. With regard to securing the energy supply,
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Speaker 6: you've got a couple of ideas, including upgrading the Strategic
8:33
Speaker 6: Petroleum Reserve.
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Speaker 5: What do we need to do?
8:35
Speaker 4: So?
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Speaker 7: The strategy to Petroleum Reserve was actually developed in the
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Speaker 7: late nineteen seventies in response to the last Iranian oil crisis.
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Speaker 7: This was Henry Kissinger's big concept and coming out of
8:45
Speaker 7: that crisis, we also formed the International Energy Agency at
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Speaker 7: that time. So the SPR has not been upgraded since
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Speaker 7: the late nineteen seventies ever damaged. It's been damaged. In fact,
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Speaker 7: every time you withdraw oil from the SPR, the infrastructure
8:59
Speaker 7: slowly breaks down. So it is in desperate need of upgrading.
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Speaker 7: And what we're suggesting is we need to upgrade the SPR.
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Speaker 7: We need to get the engineering right. Currently it is
9:10
Speaker 7: supposed to be able to deliver about four and a
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Speaker 7: half million barrels of oil a day from it. It
9:15
Speaker 7: hasn't during this crisis. It's only delivered about a million
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Speaker 7: barrels a day. Because the engineering needs to be upgraded significantly.
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Speaker 2: Well just one more question on the SPR before we
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Speaker 2: move on here. It also needs to be refilled infrastructure aside.
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Speaker 2: It's hit the lowest level in forty three years, and
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Speaker 2: I just wonder how quickly you really anticipate we can
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Speaker 2: do that, and how it's going to compete with demand
9:37
Speaker 2: from other countries who are also trying to rebuild their
9:40
Speaker 2: own stock biles, and with just the daily needs in
9:42
Speaker 2: this country and everywhere else.
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Speaker 3: Well.
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Speaker 7: I'd also remind you that we entered this crisis at
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Speaker 7: very low levels of the SPR because it was used
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Speaker 7: during the previous administration, not because we were in an
9:52
Speaker 7: energy security dilemma, but really because they wanted to lower
9:55
Speaker 7: prices going into midterm elections. So we cannot be using
9:58
Speaker 7: the SPR for political persons. Is it has to be
10:01
Speaker 7: in times of energy security crises, which is what we've
10:04
Speaker 7: seen over the course of the last few months. We're
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Speaker 7: record lows now because of the near nine million barrels
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Speaker 7: a week that we have been withdrawing from it. So
10:13
Speaker 7: it is now is the time, particularly when we're dealing
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Speaker 7: with lower prices, we should start thinking about upgrading reserve
10:19
Speaker 7: and how we refill it in a timely manner.
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Speaker 6: Really interesting that includes as well new offshore leasing, expanded
10:25
Speaker 6: access in the Gulf, and ensuring reliable fuel supply through
10:30
Speaker 6: what you call a functional renewable fuel standard.
10:33
Speaker 7: What is that, Well, currently the Renewable Fuel Standard, which
10:36
Speaker 7: of course is the way we providethol or put ethanol
10:39
Speaker 7: in gasoline. What we've actually proposed is a system where
10:43
Speaker 7: we're no longer providing what are called small refiner exemptions
10:47
Speaker 7: to mid size refiners, which is essentially a bailout to
10:51
Speaker 7: refiners that aren't able to function with the RFS in place,
10:55
Speaker 7: and in exchange for a relook at the the RFS,
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Speaker 7: we're proposing that we actually have E fifteenanol fifteen percent
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Speaker 7: ethanol within the gasoline fleet. So this is a proposal
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Speaker 7: that has made its way through the United States House
11:09
Speaker 7: of Representatives. It's something that the United States Senate should
11:11
Speaker 7: consider it now as well.
11:14
Speaker 2: I would just point out that President Trump just touched
11:16
Speaker 2: down in Pennsylvania, where he'll be speaking later this afternoon.
11:19
Speaker 2: He's gaggling with reporters right now, and if he brings
11:22
Speaker 2: any newsworthy comments, we will bring that to our audience.
11:25
Speaker 2: But of course, this is a president in Pennsylvania, which
11:27
Speaker 2: obviously is a robust energy state. In many ways, it
11:31
Speaker 2: is a president who campaigned in part on drill baby
11:33
Speaker 2: drill and leashing American energy. Cutting regulatory red tape and
11:39
Speaker 2: permitting reform is part of that. It's also one of
11:41
Speaker 2: your ideas here. This is a discussion it feels like
11:44
Speaker 2: we've been having in Washington.
11:46
Speaker 5: Forever for decades.
11:47
Speaker 2: Is this time any different?
11:49
Speaker 7: I certainly hope so. And I give the President a
11:51
Speaker 7: lot of credit for focusing on American production. We're now
11:54
Speaker 7: producing more oil and natural gas than we ever have
11:57
Speaker 7: in the history of this country, and by the way,
11:59
Speaker 7: the more oil and go in any country has ever
12:01
Speaker 7: produced in the history of the world. And a lot
12:03
Speaker 7: of that has to do with the president's policies that
12:05
Speaker 7: he's advanced. But the one big thing that's missing is
12:08
Speaker 7: comprehensive permanent reform done by Congress in a bicameral way.
12:12
Speaker 7: So we're working with both sides of the aisle to
12:15
Speaker 7: get this accomplished. And I will say President Trump has
12:18
Speaker 7: done everything that he can do from the executive branch,
12:20
Speaker 7: and the courts have done everything that they've done with
12:22
Speaker 7: three major Supreme Court decisions. The only branch that hasn't
12:26
Speaker 7: acted is Congress, But we're hopeful that in the month
12:29
Speaker 7: of July, with the negotiators that are at the table now,
12:32
Speaker 7: including Shelley Moore Capito from West Virginia and Martin Heinri
12:35
Speaker 7: from New Mexico and Sheldon white House from Rhode Island,
12:37
Speaker 7: that the Senate can actually finally pass a bill that
12:40
Speaker 7: gets enacted into law.
12:41
Speaker 5: Well, to your point out, for all the talk, that
12:43
Speaker 5: would be quite a moment.
12:44
Speaker 6: Mike's strengthening resilience in supply chains you point out, and
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Speaker 6: I think Kaylee already highlighted this, working with allies in
12:51
Speaker 6: the Gulf to accelerate opportunities that reduce reliance on the
12:54
Speaker 6: Strait of Horror moves. After everything we just went through,
12:57
Speaker 6: what do we need more pipe, more storage or just
13:00
Speaker 6: staying away from that part of the world.
13:02
Speaker 7: Well, here is the key. If it weren't for the
13:05
Speaker 7: infrastructure that the Saudis and the Emioradis put into place
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Speaker 7: in advance of this crisis, we would be in a
13:12
Speaker 7: much different position.
13:13
Speaker 5: Prices would be much higher.
13:15
Speaker 7: Thankfully, they put in a major pipeline, the East West
13:19
Speaker 7: Pipeline through Saudi, another major pipeline through UAE. Both of
13:22
Speaker 7: them are talking about expanding those pipelines right now as
13:26
Speaker 7: lifelines to get around the Strait of Horn moves. I
13:29
Speaker 7: expect that investment's going to continue. What I'm suggesting and
13:32
Speaker 7: what API is suggesting in this plan is that to
13:35
Speaker 7: the extent that they need assistance in building out that infrastructure,
13:37
Speaker 7: the Export Import Bank and other resources here from the
13:40
Speaker 7: federal level should be there because we're still very reliant
13:45
Speaker 7: and the world is reliant on those products that are
13:47
Speaker 7: coming out of the Arabian golf. So that's one idea
13:51
Speaker 7: that we've advanced. But in addition to that, I think
13:54
Speaker 7: we need to really focus on advancing Western Hemisphere energy.
13:59
Speaker 7: That means, yes, ensuring that we have the resources that
14:02
Speaker 7: we need here in the United States and places like
14:03
Speaker 7: Alaska and North Dakota and of course the prolific Permian
14:06
Speaker 7: Basin and the Gulf of America. But in addition to that,
14:10
Speaker 7: they're huge oil plays happening right here in the Western
14:13
Speaker 7: Hemisphere that are very exciting. Exon and Chevron, for example,
14:16
Speaker 7: are in Guyana. Argentina is increasingly becoming an important play.
14:21
Speaker 7: Venezuela that where we were only importing about one hundred
14:25
Speaker 7: thousand barrels a day from Venezuela before we went in
14:27
Speaker 7: to get Maduro. Now we're importing almost five hundred thousand
14:30
Speaker 7: barrels a day. That's where we should focus on the
14:33
Speaker 7: North South alliance, not the East West alliance.
14:36
Speaker 5: I'm glad you can come talk to us about all
14:38
Speaker 5: of this, Mike.
14:38
Speaker 6: This is a critical timing here as we try to
14:40
Speaker 6: figure out the next chapter in this whole story. He's
14:43
Speaker 6: the president of the American Patrollingum Institute. Mike Summers, we
14:46
Speaker 6: thank you as always. With some headlines coming from the
14:48
Speaker 6: President on the tarmac again, he says we will talk
14:51
Speaker 6: voter ID Bill with Republican lawmakers tomorrow, knowing that he
14:55
Speaker 6: is going to be headed to the hill tomorrow on
14:56
Speaker 6: a busy day for the president, adding there is no
14:59
Speaker 6: rush to get inspect on the ground in Iran. Much
15:02
Speaker 6: more to follow here on Bloomberg as we assemble our
15:05
Speaker 6: political panel. Next, stay with us on Balance of Power.
15:08
Speaker 6: We'll have much more coming up after this.
15:13
Speaker 1: You're listening to the Bloomberg Balance of Power podcasts Ketsas
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15:32
Speaker 2: Before we leave the markets? Do you want to note
15:34
Speaker 2: the red headline that just crossed the Bloomberg terminal. SpaceX
15:37
Speaker 2: set to raise twenty five billion dollars from its debut
15:40
Speaker 2: high grade bond sale. This is after we saw eighty
15:43
Speaker 2: nine billion dollars in demand for this debt offering. Interestingly,
15:47
Speaker 2: SpaceX is rebounding today after a couple of days of losses.
15:50
Speaker 2: The stock right now is up about six percent on
15:54
Speaker 2: the day. But this just underscores, Joe, the massive amount
15:57
Speaker 2: of capital that is going to be required for SpaceX
16:00
Speaker 2: to actually deliver on what it promised investors in that
16:02
Speaker 2: IPO perspectus, this notion of orbital data centers and everything else.
16:07
Speaker 2: You're going to need a lot of money to do
16:08
Speaker 2: that and to finance it. In part, they're obviously tapping
16:11
Speaker 2: the debt market even after raising billions of dollars in
16:14
Speaker 2: their IPO.
16:15
Speaker 6: Asteroid mining is still the part that I'm looking forward to.
16:18
Speaker 6: But yeah, every time we question whether the money is
16:21
Speaker 6: going to be there, the money shows up, and to
16:23
Speaker 6: think that the stock is catching a bid right now
16:25
Speaker 6: is also interesting, up six percent.
16:26
Speaker 5: We'll keep tabs on SpaceX throughout the day.
16:29
Speaker 6: Micron is still hurting ahead of earnings tomorrow, down sharply
16:31
Speaker 6: at ten actually make it eleven percent loss here, which
16:35
Speaker 6: is the reason, one reason at least why we're seeing
16:37
Speaker 6: pretty big losses on the Nasdaq.
16:39
Speaker 5: In Vidia down three percent now too.
16:41
Speaker 2: Yeah, so maybe today is not a day when President
16:44
Speaker 2: Trump is going to be touting record stock markets, although
16:47
Speaker 2: that won't necessarily stop him from doing so. But he
16:51
Speaker 2: is going to talk about the economy in Pennsylvania, where
16:53
Speaker 2: he just touched down. It's an event that is going
16:56
Speaker 2: to be focused in part on affordability and gas prices.
16:59
Speaker 2: I would imagine visiting a Mac trucks y facility, but
17:03
Speaker 2: this is part of the affordability tour, right what the
17:05
Speaker 2: White House promise the President was going to be focused
17:08
Speaker 2: on at the start of this year, a midterm election.
17:10
Speaker 6: Year, President leaving the bubble once again. This is his
17:12
Speaker 6: fifth visit to Pennsylvania, which is remarkable. Mcunjie is the
17:17
Speaker 6: name of the town, a suburb of Allentown where the
17:19
Speaker 6: Mack truck plant is. And yeah, diesel prices are a
17:22
Speaker 6: pretty big deal there, so we'll be curious to hear
17:24
Speaker 6: how he frames affordability, which he has described as a
17:26
Speaker 6: Democrat hoax, having said recently in the Oval Office that
17:29
Speaker 6: he loves the inflation. Of course, he's going to be
17:32
Speaker 6: joined as well by somebody who could use the help.
17:34
Speaker 6: Congressman Ryan Mackenzie, Republican and Lehigh Valley was already speaking
17:38
Speaker 6: at that event.
17:38
Speaker 5: President should be there shortly, Kayley.
17:40
Speaker 6: As we assemble our political panel for their thoughts on
17:44
Speaker 6: the message of affordability today and the impact of everything
17:47
Speaker 6: that we have been talking about with regard to geopolitics.
17:49
Speaker 6: Bloomberg Politics contributors Rick Davis and Genie Shanzano join Rick
17:53
Speaker 6: as our Republican strategist and partner at Stone Court Capital,
17:56
Speaker 6: Genie our Democratic analyst and democracy visiting fellow at Harvard
18:00
Speaker 6: Kennedy School's Ash Center. What will be the message from
18:03
Speaker 6: the President today, Rick, He's been focused on talks with Iran.
18:07
Speaker 6: He's been focused on the Reflecting Pool and other items here,
18:10
Speaker 6: including a UFC fight in Washington and the big MAGA
18:13
Speaker 6: rally this week. He has to come down to the
18:15
Speaker 6: message of affordability once again.
18:17
Speaker 5: However, what will it be today.
18:20
Speaker 8: Well, I would think that the White House would want
18:22
Speaker 8: him talking about the housing bill that's made its way
18:24
Speaker 8: in a by Parson fashion through the House and Senate
18:27
Speaker 8: to land on his desk, should be front and center
18:30
Speaker 8: as an accomplishment of his administration the Republican Party. To
18:34
Speaker 8: get that done by partisanship is not a bad thing
18:37
Speaker 8: to be talking about. In Pennsylvania. It's one of the
18:40
Speaker 8: rare states that still has a split Senate delegation, just
18:45
Speaker 8: a couple left in the country that's not either all
18:48
Speaker 8: red or all blue. And it pretends the kind of
18:52
Speaker 8: district that the President's going to be in today, as
18:54
Speaker 8: you mentioned, you know, Ryan McKenzie, in a tough toss
18:57
Speaker 8: up kind of election, that that could be very very
19:02
Speaker 8: important to the Republican Caucus and the House of Representatives.
19:05
Speaker 8: But look, he's probably distracted. He's going to meet with
19:10
Speaker 8: the Senate leadership and wreck in the caucus tomorrow for
19:15
Speaker 8: lunch and going to be talking about that crazy Save
19:19
Speaker 8: America bill that he's holding the Senate hostage over, and
19:24
Speaker 8: I bet you he makes a case for it today too.
19:29
Speaker 2: Well, yeah, and he talked about that with reporters when
19:31
Speaker 2: he landed the airport Genie talking about the fact that
19:35
Speaker 2: at that luncheon tomorrow with Senate Republicans, he is going
19:38
Speaker 2: to talk about the Save America Act. When we consider
19:42
Speaker 2: the audience that he'll find in Pennsylvania today, how much
19:46
Speaker 2: is that what voters really want to be hearing from
19:49
Speaker 2: the president about. Is that the right message to be
19:52
Speaker 2: bringing in one word?
19:54
Speaker 9: No, And you know, I'm just listening to Rick, and
19:57
Speaker 9: you can see the White House whole team putting the
20:00
Speaker 9: President in a position to say and do all the
20:02
Speaker 9: right things. It's a critical district in a critical state.
20:06
Speaker 9: The focus has got to be on the economy. And yet, Kaylee,
20:09
Speaker 9: I look at his truth social and I looked about
20:12
Speaker 9: fifteen minutes ago, and the last four posts were about
20:15
Speaker 9: guess what the reflecting pool? And this sort of just
20:19
Speaker 9: summarizes where the president's head is versus where the pole
20:23
Speaker 9: teams people like Rick Davis and you know, voters really
20:28
Speaker 9: want him to be, which is talking about things like
20:30
Speaker 9: the housing bill that is passing, as Rick mentioned, talking
20:34
Speaker 9: more importantly even about the economy, about inflation. And I
20:38
Speaker 9: think we can't forget that this plant he's visiting, same
20:41
Speaker 9: one that Joe Biden visited, is one in which they
20:45
Speaker 9: were hit not just as a result of what's happened
20:48
Speaker 9: in Iran, but also his favorite word, tariffs, and all
20:52
Speaker 9: of that has cost them jobs, and all of that
20:55
Speaker 9: has cost him support, especially among white, non college educated voters,
21:01
Speaker 9: who voted for him by like sixty five percent in
21:04
Speaker 9: the twenty twenty four election. But the latest polls in
21:07
Speaker 9: Pennsylvania show they're now down to about thirty nine percent,
21:11
Speaker 9: which is better than the average American poll, but still
21:15
Speaker 9: a huge problem for Republicans and a huge problem for
21:18
Speaker 9: Donald Trump.
21:20
Speaker 6: Well, so we come back around to the same kind
21:22
Speaker 6: of questions every time he hits the road. Rick, is
21:24
Speaker 6: it more important for Donald Trump to be out and
21:27
Speaker 6: in person, regardless of the message, or would Susie Wiles
21:32
Speaker 6: rather keep him in the White House if he's not
21:34
Speaker 6: going to talk about affordability?
21:36
Speaker 8: Well, I do think Susie Wilds declared at the beginning
21:39
Speaker 8: of this election cycle that no matter what they do,
21:42
Speaker 8: this election is going to be about Donald Trump, so
21:44
Speaker 8: they might as well lean into it and try and
21:47
Speaker 8: influence it. And at that point in time, they declared
21:50
Speaker 8: they would be out talking about affordability, about cost of
21:53
Speaker 8: living every single week, and that was twelve weeks ago
21:56
Speaker 8: and they've been out five times. So I know there's
21:59
Speaker 8: been a lot going on, and you know, you got
22:01
Speaker 8: wars in the Middle East and all kinds of other issues.
22:04
Speaker 8: But at a time when you know Republicans are really
22:07
Speaker 8: down and out in the president's images at one of
22:10
Speaker 8: the lowest levels in history, you would think that they
22:14
Speaker 8: would try to stick to a schedule that keeps the
22:16
Speaker 8: President out and about because I don't think it's avoidable.
22:19
Speaker 8: I think Susie Wilds is right. This is going to
22:21
Speaker 8: be about Donald Trump no matter what they want. And
22:25
Speaker 8: if he's going to go out and sell, he's got
22:26
Speaker 8: to sell. But he can't talk about reflecting pools, and
22:29
Speaker 8: he can't talk about ballrooms, and he can't talk about arches,
22:32
Speaker 8: and he can't talk about all this stuff that voters
22:35
Speaker 8: could not care less about and actually get angry when
22:38
Speaker 8: to hear him talking about it.
22:41
Speaker 2: Well, So, if you're Ryan McKenzie rick, a swing district Republican,
22:47
Speaker 2: is it wise to be aligning yourself with the president
22:51
Speaker 2: in this way headlining an event together?
22:55
Speaker 8: Again, He's stuck, right, he doesn't have any choice. He
22:58
Speaker 8: looks at his numbers and if I don't get the base.
23:01
Speaker 8: MAGA vote out on toast. Mi Glauler did it with
23:04
Speaker 8: Trump the other day. I mean, could not have a
23:06
Speaker 8: more independent Republican in a state that absolutely shouldn't have
23:10
Speaker 8: Donald Trump around him. But you know, he saw the
23:12
Speaker 8: base and he realized if I lose the base, I
23:15
Speaker 8: lose the election. And I think Mackenzie is looking at
23:18
Speaker 8: the same construction. The reality is you can't you can't
23:22
Speaker 8: get any kind of swing voters if you lose your base, right,
23:25
Speaker 8: it doesn't matter. So you got to start with the basics.
23:28
Speaker 8: And that's where we are the summer before the midterms.
23:31
Speaker 8: Is worrying about the basics?
23:34
Speaker 6: Well interesting, I suspect that Ryan mackenzie is also thinking
23:38
Speaker 6: about these numbers today in the Washington Post, Genie, and
23:40
Speaker 6: I'm curious how you're looking at this. An analysis by
23:44
Speaker 6: the Post fines Americans are voting in Democratic primaries and
23:48
Speaker 6: in special elections this year in far greater numbers than
23:51
Speaker 6: we've seen before. Twelve point six million ballots cast in
23:55
Speaker 6: Democratic House primaries versus eight point six million in Republican ones.
24:01
Speaker 6: We don't want to read too far into this, but
24:03
Speaker 6: I'm wondering how you see that playing out in the general.
24:07
Speaker 9: Yeah, I'm so glad you mentioned this, Joe, because this
24:09
Speaker 9: is a critical critical issue in the midterm, which is
24:13
Speaker 9: enthusiasm and turn out Esrick was just talking about, and
24:17
Speaker 9: we are seeing this writ large. The Washington Post story
24:20
Speaker 9: you just referenced today is a really good example. We
24:23
Speaker 9: also saw the latest Maris pol and the latest Maris
24:26
Speaker 9: poll shows that among Republicans, Donald Trump still has large approval,
24:32
Speaker 9: but the strength and the enthusiasm of approval amongst Republicans
24:38
Speaker 9: as it pertains to Trump has declined over twelve points
24:41
Speaker 9: in a year. So it's not that you know, members
24:44
Speaker 9: of the GOP are saying, oh, we don't like Trump
24:47
Speaker 9: and you know we're going to go Democratic, not by
24:49
Speaker 9: any means. It's that you're just not as enthusiastic because
24:53
Speaker 9: what they're seeing around them and the problem for people
24:56
Speaker 9: like in this district in Mackenzie is that they won't
25:00
Speaker 9: be enthusiastic enough to show up. And so that's what
25:03
Speaker 9: Donald Trump really has to work on out there, and
25:07
Speaker 9: he's got to work on it by talking about things
25:09
Speaker 9: that people care about. And you know, I just want
25:12
Speaker 9: to go back to this manufacturing site. This is a
25:15
Speaker 9: place that at its height like the late seventies, they
25:17
Speaker 9: had like nineteen point something million workers in the manufacturing sector.
25:22
Speaker 9: It's now down to twelve. That has nothing to do
25:25
Speaker 9: literally with Donald Trump and Iran and tariffs in the
25:28
Speaker 9: last few years. These are systemic issues, and one thing
25:31
Speaker 9: the Republicans and Trump and Democrats could do is talk
25:35
Speaker 9: about how you're going to address this in a concerted
25:38
Speaker 9: way in the face of AI and the face of
25:41
Speaker 9: automation and so many other things. We aren't hearing any
25:45
Speaker 9: of that by either side.
25:48
Speaker 2: Just quickly, Genie on this notion around strong Democrat Democratic turnout.
25:54
Speaker 2: If the Save America Act were to pass as the
25:57
Speaker 2: President wants, with voter id with restrictions on mail and balloting,
26:01
Speaker 2: what would the net effect of that be on who
26:04
Speaker 2: gets to turn out or who is driven to turn
26:06
Speaker 2: out in the midterms.
26:09
Speaker 9: You know, I think that it may even out because
26:12
Speaker 9: I think if they pass that, you may see the
26:15
Speaker 9: Democratic base more upset than they already are in turnout
26:18
Speaker 9: in larger numbers despite that, and Republicans may see a
26:22
Speaker 9: drop off because it impacts things like early voting, mail
26:25
Speaker 9: in balloting. That's why so many Republicans in the House
26:29
Speaker 9: and the Senate are scratching their head and saying, no,
26:31
Speaker 9: mister President, please don't this negatively impacts us in an
26:35
Speaker 9: election that's going to be all about turnout. And of
26:38
Speaker 9: course in the end, the American public large lose because
26:41
Speaker 9: this is going to disenfranchise voters and that is a
26:45
Speaker 9: horrible problem.
26:47
Speaker 2: Of course, there is very little likelihood that it actually
26:51
Speaker 2: can pass, as the filibuster in the Senate at this
26:53
Speaker 2: point remains intact. Genie Cianzino and Rick Davis our political
26:57
Speaker 2: panel today, thank you so much, and of course we'll
26:59
Speaker 2: be talking a lot more about that particular push from
27:02
Speaker 2: the President and the push back from Senate Republicans tomorrow
27:05
Speaker 2: when he visits the Hill for lunch with Senators Jill.
27:09
Speaker 6: That should be quite a doozy to be a fly
27:11
Speaker 6: on the wall, as they say, John Cornyn might be
27:15
Speaker 6: thinking hard about his message. We're going to turn back
27:18
Speaker 6: to the markets straight ahead and see how we're faring
27:20
Speaker 6: in the Tuesday trade alongside Katie Lines, I'm Joe Matthew.
27:23
Speaker 6: Stay with us on Balance of Power. We'll have much
27:25
Speaker 6: more coming up after this.
27:31
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch
27:34
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27:38
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27:41
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27:44
Speaker 1: live on YouTube.
27:47
Speaker 6: With another check on the markets here, it's not been
27:50
Speaker 6: a lot of fun if you're in the tech space,
27:51
Speaker 6: although there have been some areas of light software for
27:54
Speaker 6: instances getting a bid But to Amy's point, chips are
27:57
Speaker 6: falling hard, and boy when they go down, they go
27:59
Speaker 6: down fast. Kron is losing now twelve percent one hundred
28:02
Speaker 6: and thirty nine dollars, having run up significantly ahead of
28:06
Speaker 6: earnings tomorrow after the bell. Nvidia also lowered down three percent.
28:10
Speaker 6: There have been some areas of life, as I mentioned,
28:14
Speaker 6: Kaylie McDonald's is getting a bid ge. We're seeing healthcare
28:17
Speaker 6: get some love. But the tech selloff started overnight in
28:21
Speaker 6: South Korea. That's the real story here. We're not trading
28:23
Speaker 6: so much on Iran today. The COSTPI that was a
28:26
Speaker 6: freak out ten percent lower, it's worse to day since
28:30
Speaker 6: March fourth. Look no further than sk Heinez, Samsung, you
28:33
Speaker 6: know where we're going. It's these memory stocks, Kaylee, for
28:36
Speaker 6: better or worse, that seemed to be driving the market.
28:38
Speaker 2: Yeah, certainly so in the negative direction today. So let's
28:41
Speaker 2: get more on this as we turn to Bloomberg TV
28:44
Speaker 2: Markets correspondent Nourra Melinda so Naura. Obviously, we have seen
28:48
Speaker 2: incredible moves in these names. Yes, we saw them to
28:51
Speaker 2: the upside. Now we're seeing it to the downside, it seems.
28:55
Speaker 2: Is this just once again that rotation out of these
28:58
Speaker 2: stocks into more cyclical areas of the market.
29:00
Speaker 10: It absolutely that's what I'm hearing from the sources that
29:02
Speaker 10: I'm speaking with, especially when you think about the performance
29:06
Speaker 10: of a lot of these big themes, these big megacap companies,
29:10
Speaker 10: the biggest winners on the year now turning out to
29:13
Speaker 10: be some of the biggest laggards on the day. Now
29:15
Speaker 10: a lot of people are really concerned about, of course,
29:17
Speaker 10: artificial intelligence. That's really been the conversation here. We're seeing
29:22
Speaker 10: fresh questions really being raised, and you're seeing that sell
29:24
Speaker 10: off really ricocheting from as you mentioned, Korea over into
29:29
Speaker 10: the US. So I'm also taking a look at the
29:31
Speaker 10: Socks Index that tracks a lot of those Philadelphia semiconductor
29:34
Speaker 10: names down about seven point three percent, so many names
29:38
Speaker 10: lower as a lot of investors really rush for the
29:41
Speaker 10: exits outside of this sector.
29:44
Speaker 6: Interesting to see some of the ancillary stocks too, like
29:46
Speaker 6: Caterpillar that was getting a lot of love as it
29:49
Speaker 6: was suddenly considered an AI stock. SpaceX, though, is doing better, Nora,
29:53
Speaker 6: and I'm wondering what you're seeing and hearing about this.
29:55
Speaker 6: The stock catches a bit after actually trading below its
29:59
Speaker 6: debut price. It's now up five percent one hundred and
30:02
Speaker 6: sixty two dollars, and the company is raising billions now
30:04
Speaker 6: in the bond market.
30:05
Speaker 10: Well, we are seeing SpaceX seeking to raise about twenty
30:08
Speaker 10: five billion dollars in its first investment grade bond sale.
30:12
Speaker 10: You're seeing some investor appetite here. What's interesting, though, when
30:15
Speaker 10: we think about the sell off that we were seeing
30:17
Speaker 10: in SpaceX over the last couple of days. What I'm
30:18
Speaker 10: hearing from the sources that I'm speaking with is that
30:20
Speaker 10: there were so many people across the globe. If they
30:23
Speaker 10: actually were interested in SpaceX, they've already bought SpaceX. So
30:26
Speaker 10: you are seeing this in a certain way as the
30:29
Speaker 10: seller's market. So today it's interesting to see this rebound
30:32
Speaker 10: as a lot of the market is really digesting what
30:34
Speaker 10: this means, because fears were essentially percolating before about the
30:39
Speaker 10: fact that you know whether or not this company is
30:41
Speaker 10: taking on too much debt, especially as we think about
30:43
Speaker 10: the fact of all these large tech companies just taking
30:47
Speaker 10: on more and more money, taking on more and more debt,
30:50
Speaker 10: and investors are really just thinking about whether or not
30:52
Speaker 10: they're actually going to be able to see some return
30:54
Speaker 10: on investment a product on the other side of this.
30:58
Speaker 2: Well, yeah, it's a good point, Nora, this idea that
31:01
Speaker 2: so many of the hyperscalers of a lot of these
31:04
Speaker 2: AI oriented companies are having to come raise more money
31:08
Speaker 2: in debt markets. Specifically, if the demand is there for now,
31:12
Speaker 2: what sensor are you getting is to how long it
31:15
Speaker 2: is going to be able to hold up and whether
31:18
Speaker 2: this transia of debt offerings that we're seeing is going
31:21
Speaker 2: to be it for a while for that reason.
31:23
Speaker 10: And that's the question here. I mean, you're talking about appetite.
31:26
Speaker 10: We've seen about ninety billion dollars of orders already pouring
31:30
Speaker 10: in as we think about this bond saleforce SpaceX. So
31:33
Speaker 10: the question is whether or not we're going to continue
31:35
Speaker 10: to see this appetite, this fervor all these people coming
31:38
Speaker 10: behind SpaceX, or whether or not we're going to start
31:41
Speaker 10: to see a little bit of attension going toward other
31:44
Speaker 10: companies that are also in the tech space. But for
31:46
Speaker 10: right now, SpaceX certainly has everybody's attention.
31:50
Speaker 5: Noura, thank you as always. She's live in New York.
31:52
Speaker 6: Norm Molinda Bloomberg Markets correspondent with us on balance of power.
31:57
Speaker 6: It's a primary day and everything we're talking about, the
32:00
Speaker 6: wealth effect or a lack thereof, from the stock market,
32:03
Speaker 6: the impact of energy prices gas now back below four
32:06
Speaker 6: dollars a gallon, all playing into decisions that are being
32:09
Speaker 6: made in several states, including New York. And we're going
32:12
Speaker 6: to zero in on some of these races, but also
32:13
Speaker 6: talk about the issues that are driving decisions today with
32:17
Speaker 6: Daniel Squadron, former New York state senator, a Democrat, co
32:21
Speaker 6: founder of the States Project as well.
32:23
Speaker 5: Author of the new book The Fourth Branch.
32:26
Speaker 6: Daniel, it's great to have you with us as part
32:29
Speaker 6: of our conversation today on Bloomberg TV and Radio. And
32:31
Speaker 6: I'd like to start broadly with that issue of affordability
32:35
Speaker 6: that the President's going to be talking about a short
32:36
Speaker 6: time from now. Once again in Pennsylvania, not holding primaries today,
32:41
Speaker 6: but very much important on the map of swing states
32:44
Speaker 6: as we make our way toward the midterms, and then
32:47
Speaker 6: of course twenty twenty eight, when it comes to the
32:50
Speaker 6: impact of gas prices. Energy prices that have been so
32:53
Speaker 6: important in diesel is key to the mac truck facility
32:57
Speaker 6: that the President is going to be speaking at, signed
33:00
Speaker 6: with the wealth effect from the stock market, which is
33:03
Speaker 6: not enjoyed by all Americans. How do we rationalize these
33:06
Speaker 6: two as the billionaire president speaks to a roomfull today.
33:12
Speaker 11: Well, look, I think it's going to be a real
33:14
Speaker 11: challenge because it's no longer a hot take. In fact,
33:17
Speaker 11: it's almost a stale one. That people feel like things
33:21
Speaker 11: cost too much. And the spike and the gas prices
33:26
Speaker 11: is one for folks who are air travelers, it's a second.
33:30
Speaker 11: But of course this goes back to groceries and housing,
33:34
Speaker 11: and the idea that this is a thing where you
33:40
Speaker 11: can ask people to not trust their lying eyes just
33:45
Speaker 11: doesn't work. There's no amount of political rhetoric or conversation
33:49
Speaker 11: that's going to change people's fundamental math, the math that
33:53
Speaker 11: families across America do every two weeks when the paycheck
33:57
Speaker 11: comes in and they try to balance that against their checkbook.
34:03
Speaker 2: Well, so obviously we spend a lot of time talking
34:05
Speaker 2: about how affordability politics are going to play for one
34:10
Speaker 2: party relative to another, Republicans who are currently in power
34:13
Speaker 2: in Washington versus Democrats, And I'm sure that will be
34:16
Speaker 2: on display in some of the swing year districts in
34:19
Speaker 2: New York, like Mike Lawlers, who will learn what Democrat
34:22
Speaker 2: he is up against after today's primary. But for the
34:26
Speaker 2: city where it's just Democrats against Democrats, how is the
34:30
Speaker 2: messaging around these kind of issues differing inside of the party?
34:36
Speaker 11: Well, look in New York City, I'd say gas prices
34:39
Speaker 11: themselves are probably not as central an issue is in
34:43
Speaker 11: some other places, but the impacts of gas prices because
34:46
Speaker 11: people pay extremely high utility bills, it goes into how
34:51
Speaker 11: well and how affordably the mass transit system runs. And
34:55
Speaker 11: of course housing, when you talk about a city like
34:58
Speaker 11: New York where people from around the country want to
35:00
Speaker 11: live there and try to make a life, how just
35:03
Speaker 11: about the highest housing costs are close to it in
35:05
Speaker 11: the country is still a major major issue. I think
35:10
Speaker 11: what is sometimes missed though, is that in primaries in
35:13
Speaker 11: a place like New York, it really comes down to
35:15
Speaker 11: the individual candidate's much more than the national narrative. We
35:18
Speaker 11: try to put on it who has the personal credibility
35:21
Speaker 11: and relationship in that Democratic primary district to convince folks
35:27
Speaker 11: on many of these same issues that are national, but
35:30
Speaker 11: in a very local way.
35:33
Speaker 6: Sink your teeth into the twelfth Congressional district. Then for
35:37
Speaker 6: us Daniel, this is a doozy. It's a big personality contest,
35:40
Speaker 6: you could argue, and I realized that there are some
35:42
Speaker 6: other elements, including AI spending, which is a really interesting
35:45
Speaker 6: factor here. But you've got a Kennedy and Jack Schlossberg,
35:49
Speaker 6: You've got George Conway, a star from cable news, all
35:53
Speaker 6: vying to replace Jerry Nadler. Here, Alex Boris is the
35:57
Speaker 6: one that has drawn that AI money as he's calling
35:59
Speaker 6: for additional regulations. How much of a personality contest is
36:03
Speaker 6: this versus a policy one?
36:05
Speaker 11: And of course you have a SEMMING member Micah Lasher,
36:07
Speaker 11: who has a career of public service working for the
36:10
Speaker 11: former mayor Bloomberg, Governor Hockel and others. You know, I
36:14
Speaker 11: think it is really interesting to see how in part
36:18
Speaker 11: certainly when you talk about a SEMEN member Boris, it's
36:21
Speaker 11: become a proxy war for large AI companies you have
36:26
Speaker 11: some in favor, some opposed. And you know, my hope is,
36:31
Speaker 11: as a New Yorker and as someone who really believes
36:33
Speaker 11: in representative democracy in a relationship between elected officials and
36:37
Speaker 11: the voters, is that that proxy war isn't what defines
36:41
Speaker 11: the out company. What defines the outcome I would hope
36:44
Speaker 11: would be how well, in this marquee district in America,
36:48
Speaker 11: each of these candidates is seen to represent their constituents. Certainly,
36:52
Speaker 11: the future of AI regulation, ais impact on jobs, the
36:56
Speaker 11: siting of data centers are all important public policy issues.
37:01
Speaker 11: But in New York City, as I talked about before, housing,
37:04
Speaker 11: public transit, safe streets, better schools aren't as well, and
37:08
Speaker 11: there's no national proxy war on that stuff. But I
37:11
Speaker 11: do hope that's what the voters end up focusing on.
37:15
Speaker 10: Well.
37:16
Speaker 2: And of course it was messaging around those issues to
37:20
Speaker 2: voters that ultimately got Zaron Mumdani elected as Mayor of
37:23
Speaker 2: New York as a Democratic socialist. And he is a
37:26
Speaker 2: player in this game today, having endorsed against incumbents in
37:30
Speaker 2: the tenth district and the thirteenth district. And I just
37:34
Speaker 2: wonder how you're viewing this test, Frankly, of his power
37:39
Speaker 2: in New York as he goes up against the man
37:41
Speaker 2: who could be the next Speaker of the House in
37:43
Speaker 2: Hackeen Jeffreys.
37:45
Speaker 11: Well, look, first of all, you win a big election
37:48
Speaker 11: like mayor of New York City, I don't think there's
37:50
Speaker 11: actually anything that surprising about the fact that you would
37:54
Speaker 11: then go and try to get some more allies in office.
37:59
Speaker 11: I think what's going to be really interesting here is
38:02
Speaker 11: if it's a confusing outcome where you know, some of
38:07
Speaker 11: the incumbents, when some of the folks endorsed by the mayor,
38:11
Speaker 11: when as I said, in the twelfth district, you know,
38:13
Speaker 11: I think you could write thirteen different stories about how
38:16
Speaker 11: it comes out. My fear is that it gets oversimplified
38:20
Speaker 11: into some national narrative, because that really isn't how we
38:23
Speaker 11: should be looking at primaries within a party. We should
38:26
Speaker 11: be looking at it as a temperature check on what's
38:28
Speaker 11: happening with the base of the party first. But second,
38:31
Speaker 11: and I think more important, and this.
38:32
Speaker 5: Is why I focus all of my time on states.
38:35
Speaker 11: It's really a way to look at how well folks
38:38
Speaker 11: are representing their communities. General elections are about the large
38:43
Speaker 11: partisan conversation often, but these primaries are really about these individuals.
38:51
Speaker 6: Your book, as we mentioned, the Fourth Branch, How State
38:54
Speaker 6: Government Can Save Our Union, incidentally forward by Sarah Jessica Parker.
38:59
Speaker 5: Is that true? She the audiobook for you, Yes.
39:02
Speaker 11: The incredibly paled actor and book Johge.
39:07
Speaker 5: Yes.
39:07
Speaker 11: Really honored to have worked with her job Jesus engaged
39:11
Speaker 11: in this as I think everyone should be.
39:14
Speaker 6: Well, I'll tell you, Daniel, the thesis in the book
39:17
Speaker 6: is fascinating. And I wonder what you make of the
39:20
Speaker 6: current argument here in Washington about AI regulation, because we
39:23
Speaker 6: have found great passions on both sides of this debate
39:26
Speaker 6: whether there should be a federal standard or a state
39:29
Speaker 6: by state sort of patchwork of AI regulations that critics
39:33
Speaker 6: say would in fact hold the technology at bay and
39:37
Speaker 6: might cause the US to lose the so called AI race.
39:41
Speaker 6: Is artificial intelligence the biggest challenge to the fourth branch?
39:47
Speaker 11: Well, it's certainly not the biggest challenge, and I think
39:50
Speaker 11: it's actually something that has been anticipated when you talking
39:52
Speaker 11: about the power of states in a lot of ways.
39:55
Speaker 11: What's one thing we know about AI You've been talking
39:57
Speaker 11: about it all morning is people watch them markets? Is
40:01
Speaker 11: a lot is still unknown? You're going to need a
40:03
Speaker 11: dynamic policy making framework as this develops. Now, Look, I
40:09
Speaker 11: am a Democrat, as you said, I think that federal
40:12
Speaker 11: action is appropriate and warranted. We just don't get a
40:16
Speaker 11: lot of it. And so if the federal government steps
40:18
Speaker 11: into this arena and says we've got it, what that's
40:22
Speaker 11: going to mean is a lot of stagnation as the
40:25
Speaker 11: world changes faster than maybe we've ever seen before. The
40:29
Speaker 11: great thing about our federal system we have fifty one different, independent,
40:35
Speaker 11: powerful jurisdictions, obviously in a fast moving time, knowing that
40:43
Speaker 11: government catching up to the private sector can sometimes be
40:46
Speaker 11: a challenge. There's no perfect answer, but I'm really excited
40:50
Speaker 11: that in this country we have fifty one different chances
40:53
Speaker 11: to get AI regulation rate.
40:55
Speaker 5: All right.
40:56
Speaker 2: The author of the new book, The Fourth Branch and
40:58
Speaker 2: former state Senator in New York, Daniel Squadron, thanks for
41:01
Speaker 2: being with us on this early edition of Balance of Power.
41:05
Speaker 6: Thanks for listening to the Balance of Power podcast. Make
41:09
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41:12
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41:14
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41:18
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