US Moves Bombers From UK Airbase as Threats Linger

>> THIS IS "BALANCE OF POWER," LIVE FROM WASHINGTON, D.C. JOE: TONIGHT, DIESEL DILEMMA. THE WHITE HOUSE ALLOWING BROADER USE OF THE FUEL TYPICALLY RESERVED FOR FARMS AND CONSTRUCTION IN ITS LATEST PUSH TO BRING DOWN COSTS AHEAD OF NOVEMBER BUT IT DOES LITTLE TO ADDRESS THE SUPPLY PRESSURES INCLUDING THE ONGOING WAR WITH IRAN. A FORMER ANTHROPIC AND AI RESEARCHER AND WHISTLEBLOWER WARNING NEW YORK CITY LAWMAKERS THAT THE RACE TO DEVELOP AI COULD LEAD TO HUMAN EXTINCTION, AS THE CITY COUNCIL WAYS NEW -- WEIGHS NEW LIMITS. 29 DAYS TO GO, AFFORDABILITY PRESSURES MOVING -- LOOMING LARGE AS FORMER PRESIDENT BARACK OBAMA PREPARES TO CAMPAIGN WITH ABDUL EL-SAYED WE WILL WALK THE LANDSCAPE WITH OUR POLITICAL PANEL THIS HOUR. TO OUR AUDIENCES WORLDWIDE, WELCOME TO "BALANCE OF POWER," I'M JOE MATHIEU ALONGSIDE KAILEY LEINZ. KAILEY: WE BEGIN WITH THE PRESIDENT BACK ON THE ROAD RETURNING TO STATES THE REPUBLICANS WON HANDILY IN THE LAST ELECTION AS THE PARTY FIGHTS TO HOLD MAJORITIES IN BOTH CHAMBERS OF CONGRESS. THE PRESIDENT TOUTING HIS RECORD ON FARMERS. JD VANCE HEADS TO ALASKA TO SHORE UP SUPPORT FOR DAN SULLIVAN. NEBRASKA AMONG 16 STATES WHERE EARLY VOTING WILL BE UNDERWAY BY THE END OF THIS WEEK MEETING VOTERS ACROSS NEARLY A THIRD OF THE COUNTRY CAN SOON CAST BALLOTS. LET'S BRING IN JOSH WINGROVE LIVE AT THE WHITE HOUSE WITH MORE. JOSH, WHAT IS THE MESSAGE PRESIDENT TRUMP IS BRINGING TO NEBRASKA THIS EVENING? JOSH: WELL, WE ARE GOING TO SEE BUT HE HAS BEEN ROLLING IT OUT IN OTHER SAYING STICK WITH US AND THE PLAN IS WORKING, TRYING TO TAMP DOWN CRITICISMS ABOUT THE COST OF LIVING BY POINTING TO INVESTMENTS BUT HE REALLY IS PLAYING DEFENSE IN A LOT OF THESE STATES, NEBRASKA NOBODY THOUGHT THAT WOULD BE ONE OF THE SENATE MAP. GOING TO OHIO. A COUPLE OF DAYS AGO, HE'S GOING AGAIN NEXT WEEK. WE ARE TRYING -- SEEING HIM TRY TO NAIL SOME OF THE FURNITURE TO THE FLOOR. BUT AS PRESIDENT THEY HELP OR HINDRANCE? NEBRASKA IS KIND OF INTERESTING BECAUSE IT HAS THAT ONE COMPETITIVE HOUSE DISTRICT THAT DOES LOOK LIKE IT IS GOING TO FLIP AND PETE RICKETTS IS RUNNING AGAINST DAN OSBORNE WHO CAME CLOSER THAN A LOT OF PEOPLE THOUGHT TWO YEARS AGO. AS THE CURRENT CLIMATE MAKES IT -- MAKE IT EVEN A YEAR AGO -- CLOSER THAN TWO YEARS AGO? AND CAN INDEPENDENT DEMOCRATS WHO ALIGN -- CANDIDATES WHO ALIGN WITH THE DEMOCRATS FLIP SEATS? JOE: THE RED DYE DIESEL THAT IS NOT TAXED, YOU PUT THIS OUT TO THE BROADER MARKET AND THE IDEA WOULD BE TO LOWER PRICES ACROSS THE BOARD. TYLER KENDALL ASKED THE PRESIDENT ABOUT THIS MOVE WHEN HE WAS LEAVING THE WHITE HOUSE EARLIER. >> ARE YOU CONSIDERING EASING LIMITS ON RED DYE DIESEL? >> WE ARE DOING A LOT FOR THE FARMERS, THE FARMERS HAVE BEEN WITH ME SINCE DAY ONE, I'VE MADE THE FARMERS A LOT OF MONEY, WE HELP THEM A LOT, AND THE FARMERS ARE WITH ME ALL THE WAY IN FACT I WILL BE GOING TO IOWA VERY SOON, AND TODAY I'M GOING TO NEBRASKA FOR OUR FARMERS. I WILL BE HELPING OUT WITH DIESEL, YES. JOE: IS HE EXPECTED TO MAKE THAT OFFICIAL? IT WAS HARD TO TELL FROM HIS ANSWER. JOSH: IT IS A LITTLE FUZZY AND LET'S GIVE A SHOUT OUT TO OUR COLLEAGUE JENNIFER DILLOW WE WHO REPORTED EARLIER TODAY ON THIS. THE LATEST IN A SERIES OF STEPS PRESIDENT TRUMP HAS TAKEN TO ADDRESS THE PRICE OF DIESEL. IT WAS REALLY BITING REPUBLICANS PARTICULARLY IN SOME OF THE STATES WE DIDN'T THINK WOULD BE ONE OF THE MAP. WHETHER IT WAS THE CALL IN THE G7 LEADERS -- WERE G7 LEADERS THAT LED EUROPE TO RELEASE DIESEL. IT SPEAKS TO THE POSITION HE IS IN. HE ALSO THINKS LATELY THE UKRAINIAN ATTACKS ON RUSSIA ARE FACILITATING THIS OR ARE MORE RESPONSIBLE FOR THE CURRENT PRICE OF DIESEL THAN IRAN. NOT A LOT OF EVIDENCE TO SUPPORT THAT, BUT INTERESTING TO SEE HOW THAT IMPACTS THE PRESIDENT ON THE CONFLICT IN UKRAINE. JOE: WITH US NOW WITH MUCH MORE ON THIS IN A NUMBER OF OTHER ISSUES TO DISCUSS THIS EVENING IS MARK WARNER, THE TOP DEMOCRAT ON THE SENATE INTELLIGENCE COMMITTEE, GREAT TO HAVE YOU BACK ON BLOOMBERG TV AND RADIO, SENATOR. IT IS WIDELY BELIEVED THAT THESE PRIZES AND DIESEL TODAY IS $6.32 ON AVERAGE, THAT IT IS NOT GOING TO COME DOWN UNTIL THE WAR WITH IRAN AND. WE HAVE HAD QUITE A BIT OF NEWS, AXIOS REPORTING THAT MEMBERS OF THE CABINET GATHERED THIS WEEKEND AT CAMP DAVID. WE KNOW WHAT HAPPENED LAST TIME THEY GOT TOGETHER, IT WAS THE BEGINNING OF THIS WHOLE ACTION. NOW B-1 BOMBERS ARE BEING MOVED OUT OF RAF HEREFORD WITH LITTLE ANNOUNCEMENT. CAN YOU CONFIRM THIS B-1 MOVE AS VICE CHAIR? ARE YOU GETTING FURTHER UPDATES FROM THE ADMINISTRATION AS TO WHY? SEN. WARNER: I MEAN THIS IS WHAT HAPPENS WHEN YOU START A WAR OF CHOICE WITHOUT A PLAN. I HAVE TO ACKNOWLEDGE I WASN'T ALL THAT FAMILIAR. RED DYE DIESEL? JOE: I PEOPLE ARE LEARNING FOR THE FIRST TIME WHAT THAT IS. SEN. WARNER: THIS IS BECAUSE IF YOU START A WAR OF CHOICE WHERE MUCH OF THE DIESEL PASSES THROUGH THE STRAIT OF HORMUZ AND YOU HAVE NO PLAN AND YOU HAVE NO ALLIES, WE ARE $6.40 ON DIESEL, FARMERS NOT JUST IN NEBRASKA AND THE WHOLE NOTION, THE PRESIDENT IS IN NEBRASKA AND THE VICE PRESIDENT'S IN ALASKA? THAT SAYS IT ALL. IN TERMS OF THE AIRCRAFT LEAVING THE AIRFIELD TODAY, WE HAVE NOT BEEN BRIEFED. BUT AGAIN, IF YOU ARE GOING TO START A WAR, WOULDN'T YOU BRIEF YOUR CLOSEST ALLIES? IT APPEARS TO ME THERE ARE EVEN PARTS OF THE U.S. GOVERNMENT THAT DID NOT KNOW THESE PLANES WERE LEAVING AND LET ME BE CLEAR WE HAVE TO PROTECT OUR PERSONNEL FIRST AND FOREMOST, BUT THIS KIND OF HURRIED EXIT AT LEAST GIVES IRAN A PROPAGANDA WIN THAT THEY CAN CLAIM WE CHASED THE AMERICANS OUT OF THEIR CLOSEST ALLIES AWAY FROM THE U.K. AIRBASE. THIS HAS BEEN THE AD HOC APPROACH TO THIS WAR FROM DAY ONE AND AS WE HAVE GONE THROUGH ON YOUR SHOW BEFORE AND EVERY METRIC FROM THE REGIME IS WORSE, THEY STILL HAVE DRONES, WE ARE NOT GETTING THE ENRICHED URANIUM , AND I SEE NO SCENARIO WHERE THE IRANIANS, WHATEVER THE PRESIDENT DECIDES TO CLAIRE -- DECLARE VICTORY, WON'T BE EXTRACTING A TOLL ON A PERMANENT BASIS ON OIL, DIESEL, ALUMINUM, AND FERTILIZER FRANKLY, SOME OF THE COMPONENTS OF FERTILIZER COME OUT OF THAT REGION AS WELL. THIS IS NOT GOOD FOR AMERICA. KAILEY: AND WHETHER IT WAS THE THREAT THAT ALLEGEDLY WAS POSED TO AND THWARTED BY THE U.K. AIRBASE OR THE FLY DUBAI INCIDENT, WHETHER IT SPEAKS TO AN ENVIRONMENT IN WHICH THE THREAT LEVEL IS RISING, SENATOR. AS THE INTEL COMMITTEE HAVE REASON TO BELIEVE THE THREAT LEVEL IS ESCALATING, NOT DE-ESCALATING WHEN IT COMES TO NOT JUST DIRECT IRANIAN ATTACKS, BUT THE WIDER NETWORK THEY MANPOWER? SEN. WARNER: ONE OF THE UNFORTUNATE THINGS IS WE ARE NOT BEING BRIEFED ON ANY REGULAR BASIS. DURING TRUMP'S FIRST TERM I DISAGREED ON MANY ISSUES BUT HE HAD VERY GOOD PEOPLE AND MANY OF THESE POSITIONS, WE WERE BRIEFED ON REGULAR BASIS, I'M PART OF THE GANG OF EIGHT, WE ARE SUPPOSED TO SEE EVERYTHING. AS WE KNOW, WE DON'T KNOW ALL THE BACKGROUND ON THE FLIGHT BUT IT APPEARED TO ME HAVE BEEN A LONE WOLF, YOU COULD STILL HAVE THAT KIND OF SITUATION IN AMERICA. I WOULD HAVE EXPECTED MORE BRIEFINGS IN TERMS OF THE FIVE SUSPECTS ARRESTED IN THE U.K., BUT THIS AGAIN GOES TO THE POINT THAT WE STARTED THIS WAR ON OUR OWN WITH NO ALLIES INVOLVED. IN MANY WAYS, OUR EUROPEAN ALLIES SOME OF THEM WOULD HAVE SIDED WITH US, THE IRANIAN REGIME WAS AWFUL, THEY WERE FOCUSED ON THE PRESIDENT'S IDEAS OF TAKING OVER GREENLAND OF ALL CRAZY THINGS. I FEAR MUCH OF THE ANGER ACROSS PEOPLE UPSET WITH THE WORLD ORDER IS BEING MORE DIRECTED AT AMERICANS THAN SOME OF OUR PARTNERS. JOE: WE KNOW THE CYBER THREAT HAS BEEN RISING. WITH REGARD TO AI AND THERE HAVE BEEN A NUMBER OF BILLS ON THIS PROGRAM, YOU HAVE ONE THAT AIMS TO CONTROL THIS DEVELOPING TECHNOLOGY, THE ARTIFICIAL INTELLIGENCE RISK MANAGEMENT AND SECURITY ACT OF 2026. AS WE HAVE ESTABLISHED, YOU ARE KIND OF AN OG WHEN IT COMES TO DATA CENTERS, YOU HAVE BEEN HAVING THIS CONVERSATION FOR A LONG TIME BECAUSE DATA CENTER ALLEY IS IN YOUR DISTRICT. WHEN IT COMES TO THIS LEGISLATION THAT WOULD CREATE YOUR PERMANENT ARTIFICIAL INTELLIGENCE SAFETY BOARD, CAN YOU TRUST SECRETARY LUTNICK OR THE ADMINISTRATION AS A WHOLE TO RUN THIS PROPERLY? SEN. WARNER: I THINK AI IS GOING TO BE THE BIGGEST TECHNOLOGY CHANGE IN OUR LIFETIME. I WAS IN THE TECH BUSINESS BEFORE I GOT IN POLITICS. THIS WILL BE BIGGER THAN WIRELESS OR THE INTERNET. I'M STILL PRO AI, I THINK THERE WILL BE GREAT INNOVATION, BUT I'VE GOT IDEAS ABOUT DATA CENTERS AND KID SAFETY AND AGENT LIABILITY, ABOUT WORKFORCE DISRUPTION. WE SHOULD GET TO ALL THOSE. RIGHT NOW WHEN WE HAVE THE LEADING RESEARCHERS IN THE WORLD SAYING WE OUGHT TO BE SAFE WITH THIS, I THINK YOU WILL HEAR MORE AND MORE BUSINESSES USING THESE TOOLS SAYING OUR BUSINESS COULD BE AFFECTED, LET'S AT LEAST PUT SAFETY PROTOCOLS IN PLACE, A PRETESTING RELEASE. THE IDEA THAT A LOT OF THESE MODELS ARE TESTED IN SANDBOX. THEY OUGHT TO HAVE BASIC CYBERSECURITY. THIS IS NO-BRAINER STUFF. I'VE NOT TALKED TO A REPUBLICAN SENATOR THAT DOESN'T PRIVATELY AGREE. YOU WOULDN'T CLIMB IN ONE AIRPLANE IF YOU THOUGHT IT WAS JUST THE INDUSTRY TESTING THE AIRPLANE. I'M A PRO-BUSINESS, PRO-MARKET GUY, BUT THE IDEA THAT WE ARE GOING TO HAVE THIS MASSIVE INNOVATION WITHOUT SOME LEVEL OF SAFETY TESTING THAT IS BEYOND THE INDUSTRY AND IT NEEDS TO BE MANDATORY, NOT VOLUNTARY. WHAT IS DISAPPOINTING TO ME IS MOST OF THE INDUSTRY LEADERS SUPPORTED THAT MANDATORY APPROACH. THE PRESIDENT MOVED THEM AWAY AND SAYS THE ANSWER IS LET'S NOT CALL IT AI ANYMORE, LET'S CALL IT SUPER INTELLIGENCE. I'M NOT SURE RENAMING THAT TECHNOLOGY WILL LOWER THE RISK BUT I DEFINITELY BELIEVE WE WILL GET THERE. I'M NOT A DOOMER BY ANY MEANS, BUT WE HAVE SOME INCIDENT THAT WOULD TURN THE AMERICAN PUBLIC UNIFORMLY AGAINST THIS INNOVATION, THAT WOULD BE THE ONLY WAY CHINA WOULD WIN. KAILEY: WELL, THE PRESIDENT AS I'M SURE YOU KNOW ANNOUNCED THE FORMATION OF THE SUPER INTELLIGENCE FORCE LED IN PART BY THE DIRECTOR OF NATIONAL INTELLIGENCE J CLAYTON, WHO I KNOW YOU DID NOT VOTE TO CONFIRM, BUT YOU HAD SOME KIND WORDS ABOUT HIM IN THE PAST. DO TRUST CLAYTON'S LEADERSHIP IN AN EFFORT LIKE THIS? WHAT COULD A SUPER INTELLIGENCE FORCE ACCOMPLISH? SEN. WARNER: I BELIEVE THAT WHEN WE LOOK AT THE RISK/REWARD CRITERIA HERE, WE HAVE GOT TO HAVE A SAFETY REGIME. SOME OF THE CHIP MANUFACTURERS DON'T WANT TO HAVE ANY SAFETY REGIME BECAUSE THEY THINK EXISTING RULES WILL WORK. I DO HAVE FAITH IN J CLAYTON. I WAS DISAPPOINTED WHEN HE WAS UP FOR DNI THAT HE WASN'T WILLING TO ACKNOWLEDGE WHO WON THE 2020 ELECTION. I BELIEVE THAT JAY WILL DO THE RIGHT THING AND I HOPE YOU WILL DO THE RIGHT THING, BUT BOY, WHEN YOU HAVE SOMETHING THAT COULD BE THIS TRANSFORMATIVE BOTH THE UPSIDE BUT ALSO THE DOWNSIDE, I THINK MOST OF US AT LEAST AS PARENTS WOULD AGREE, IF WE PUT GUARDIANS -- GUARDRAILS ON SOCIAL MEDIA MAYBE WE WOULD HAVE HEALTHIER KIDS TODAY. THIS SOCIAL MEDIA IS TINY COMPARED TO WHAT AI WILL DO TO TRANSFORM OUR LIVES, POSITIVE AND NEGATIVE. JOE: A LOT OF PEOPLE TODAY WERE GOOGLING RED DYE DIESEL TODAY. A LOT OF OTHERS WERE GOOGLING PNEUMONIC PLAGUE. THIS IS SCARY STUFF COMING OUT OF RUSSIA WHERE WE HAVE NOTED THE DEATH OF A WORKER AT AN ANTI-PLAGUE RESEARCH FACILITY, I DIDN'T KNOW THEY HAD THOSE EITHER. REPORTS SUGGEST THIS WAS PNEUMONIC PLAGUE, THAT A RESEARCHER DROPPED A VIAL AND DIED SHORTLY THEREAFTER. I REGARDING THE INTEL COMMUNITY BEING ONE OF THE FIRST TO BE TIPPED OFF BECAUSE IT WAS RELATED TO CHINA, COVID. CAN YOU CONFIRM THIS NEWS? SEN. WARNER: AGAIN, I CAN ONLY CONFIRM WHAT I'VE READ IN THE PRESS. I HAVE NOT BEEN BRIEFED. LET'S REMEMBER, PLAGUE'S DON'T UNDERSTAND NATIONAL BOUNDARIES. THESE AI TOOLS DON'T UNDERSTAND NATIONAL BOUNDARIES. IN MANY WAYS ONE OF THE CONCERNS WE HAVE IS THAT AI TOOLS CAN FIND WAYS TO CREATE POTENTIAL BIO HAZARDS. SO LET'S KINDA PUT COMMON SENSE TOGETHER. THIS IS ONE OF THE REASONS WHY THE INTERNATIONAL ORDER IS NOT PERFECT, BUT LORD KNOWS WE ALL KNOW THAT. BUT WE HAVE GONE FOR 70 PLUS YEARS WITHOUT A MAJOR NUCLEAR INCIDENT. WE HAVE SEEN THE WARRING STATES NO LONGER USE POISONOUS GAS. HAVING SOME KIND OF INTERNATIONAL AGREEMENT WHETHER IT IS AROUND PLAGUES OR AROUND SOMETHING THAT HAS AS MUCH POSITIVE BUT ALSO POTENTIAL NEGATIVE AS AI TO MY MIND JUST MAKES COMMON SENSE AND THERE IS A SELF-INTEREST. IF YOU LOOK AT CHINA, AI COULD BE MORE DISRUPTIVE TO THEIR COMMAND AND CONTROL SOCIETY THAN IT WOULD BE IN OUR COUNTRY. TRUST BUT VERIFY, I THINK WE NEED SAFEGUARDS HERE. OUR STRENGTH IN THIS COUNTRY CAME NOT JUST FROM OUR ECONOMY AND OUR MILITARY, BUT WE WERE RESPECTED AROUND THE WORLD, TRUSTED ON THE RULE OF LAW. PEOPLE LOOKED TO US AT THE END OF THE DAY A COUNTRY THAT WOULD DO THE RIGHT THING. I WORRY AT TIMES WHETHER WE STILL CARRY THAT REPUTATION. KAILEY: WELL, SPEAKING OF REPUTATIONS, DO YOU HAVE REASON TO BELIEVE RUSSIA WILL BE FORTHCOMING IN SHARING ABOUT THIS IF IT WERE TO ESCALATE FURTHER? THERE ARE STILL INTERNATIONAL FORA WHERE INFORMATION IS SHARED. AGAIN, THERE IS NO SUCH THING AS ANY KIND OF PLAGUE OR DISEASE, WHETHER IT IS THIS POTENTIAL AWFUL EVENT IN SIBERIA OR FOR THAT MATTER EBOLA IN AFRICA THAT KNOWS NATIONAL BORDERS. I THINK IT IS IN THEIR BEST INTEREST AS WELL, BE SUSPICIOUS, GO BACK TO RONALD REAGAN'S TERMS , TRUST BUT VERIFY, BUT THE IDEA THAT WE WILL SIMPLY LOOK AT THIS ONLY FROM AN AMERICAN PERSPECTIVE, I GO BACK TO THE FACT THAT AI AND PLAGUES DON'T KNOW BORDERS. KAILEY: THANKS FOR JOINING US ON BALANCE OF POWER. NOW WE TURN TO THE MARKETS WITH POWER MOVES WITH HEMA PARMAR JOINING US LIVE FROM WORLD HEADQUARTERS IN NEW YORK. A STOCK RALLY WE SAW, THE BOND YIELDS WERE UP. INTERESTING TO SEE THOSE THINGS HAPPENING AT THE SAME TIME. HEMA: IT HAS BEEN AN EVENTFUL DAY. THE S&P 500 NEARING A RECORD HIGH, THE NASDAQ 100 REACHING AN ALL-TIME PEAK, PUSHED UP BY SOME OF THE WORLD'S BIGGEST TECH STOCKS. LET'S DIG INTO SOME OF THOSE INDIVIDUAL MOVERS. NVIDIA JUMPED 2% TODAY. SPACEX, TESLA, AND MICROSOFT. ALL OF THIS OF COURSE IN THE FACE OF A CONTINUING BOND SELLOFF. THE 10-YEAR TREASURY YIELD CHANGING IN MORE THAN TWO DECADES THE MOST. AND OF COURSE WE ARE GOING TO END ON OIL. BRENT CRUDE EASING BACK $100 A BARREL SUGGESTING MIDDLE EAST SUPPLY CHAINS ARE GRADUALLY ADAPTING TO THE DISRUPTIONS WE HAVE BEEN SEEING AND WTI CRUDE ALMOST DOWN NEARLY 2% TO $89 A BARREL. JOE:,, THANK YOU SO MUCH HERE ON BALANCE OF POWER. COMING UP, CONFLICT WIDENING IN THE MIDDLE EAST AS SAUDI FORCES STRIKE THE WHO THEISS -- HOUTHIS. THE PENTAGON FORCED TO PULL U.S. BOMBERS FROM BRITAIN. "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. >> THERE WERE SOME THREATS, WE SHOULD CAPTURE THE ENEMY AND BEAT THE ENEMY. WE HAVE MOVED THEM AROUND A LITTLE BIT, NOT VERY FAR. JOE: "BALANCE OF POWER IT IS -- IT IS "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. WE HEARD FROM THE PRESIDENT DISCUSSING THE PENTAGON'S MOVE TO PULL U.S. BOMBERS OUT OF A KEY BASIN BRITAIN OVER THREATS REPORTEDLY TIED TO IRAN AS A NEW THREAT AND SAUDI FORCES LAUNCHING AN OFFENSIVE NEAR ANOTHER KEY CHOKEPOINT FOR GLOBAL ENERGY FLOWS. THE BAB EL-MANDAB STRAIT. WITH MORE, HEATHER CONLEY WHO HAS BEEN WITH US SINCE THE BEGINNING OF THIS CONFLICT. IT IS GREAT TO SEE YOU, HEATHER. YOUR THOUGHTS ON THE REMOVAL OF THESE BOMBERS. SENATOR WARMER -- WARNER SAID HE HASN'T HEARD ANYTHING ABOUT THIS TASTY MOVE. DOES THIS REINFORCE THE IDEA OF A TERRORIST THREAT AGAINST THAT BASED OR IS THERE SOME DIPLOMACY INVOLVED HERE IN MOVING BACK FROM THE FRONT? HEATHER: YOU HAD SECRETARY RUBIO SAY NOTHING TO SEE HERE, WE MOVE PLANES AROUND. THE VICE PRESIDENT SET OUT OF AN ABUNDANCE OF CAUTION, PRESIDENT TRUMP SAYS THERE IS A THREAT. WE HAVE THREE SENIOR LEADERS GIVING US THREE INTERPRETATIONS BUT I WOULD SAY WHAT CONCERNS ME THE MOST IS TIED INTO THE MIDDLE EAST AND BASIS, WE HAVE A PROBLEM WITH FACE PROTECTION THAT IS NOT BEING ADDRESSED. WHAT IS CONCERNING IS HOW QUICKLY WE REMOVED THOSE B-1 ASSETS. IF WE CAN'T PROTECT ASSETS, WE NEED A BIGGER CONVERSATION. IF WE CAN'T MANAGE THIS THREAT, WHICH SEEMED TO ME THIS IS A BIG MOVE AND OF CONGRESS DOESN'T KNOW WHAT THE THREAT WAS, HOW CAN THEY DO THEIR OVERSIGHT? KAILEY: IF THE U.S. IS HAVING TROUBLE DEFENDING ITS OWN ASSETS, IT RAISES THE QUESTION OF HELPING ALLIES LIKE SAUDI ARABIA. WHAT DO YOU MAKE OF THE HOUTHIS RECENT MOVES AND WHETHER THE U.S. CAN HELP SAUDI ARABIA? HEATHER: THIS IS A SAUDI LED OPERATION THAT BEGAN LAST EVENING, EARLY TODAY. IT APPEARS THE SAUDI BACK THE YEMENI GOVERNMENT HAS HAD SOME SUCCESS RIGHT NEAR THE COAST, BUT THE HOUTHIS NOW CONTROL MOST OF THAT COAST ALONG THE RED SEA. WHAT IS CONCERNING IS DRONES CAN STILL ATTACK FROM THE OTHER COASTAL AREAS AND AFFECT SHIPPING, BUT THIS IS A SAUDI LED, WE DIDN'T COME TO THE RESCUE AND THAT WILL LEAD AN INDELIBLE IMPRESSION ON SAUDI LEADERS THAT THE U.S. WAS NOT THERE WHEN THEY NEEDED THEM. THE HOUTHIS SAID THEY WILL ATTACK SAUDI AIRSPACE, FOR EVERY ACTION THERE IS A REACTION, WE WILL SEE HOW THEY RESPOND TO THIS. JOE: AS THE SECOND CHOKEPOINT REEMERGES, WE ARE LEARNING MORE OIL IS GETTING THROUGH THE STRAIT AT A POINT WHERE WE ARE BACK TO PREWAR LEVELS AND THIS IS A BIG OPERATION THAT INVOLVES THE U.S. NAVY OF COURSE, THE WALL STREET JOURNAL REPORTS THAT SAILORS ARE GETTING A $25,000 OWNERS JUST TO RUN THROUGH THE STRAIT. THAT OF COURSE CHANGES THE LEVERAGE POTENTIALLY TO THE UNITED STATES. AS SOMETHING WE CAN USE AT THAT THE DIPLOMATIC TABLE? HEATHER: CRUDE IS GETTING OUT. IT IS REFINED PRODUCTS THAT IS THE PROBLEM. REFINERIES WERE HIT. A CHINESE PLANT IS COMING ONLINE. YOU DO HAVE A -- UKRAINIAN ATTACKS ON RUSSIAN REFINERIES. RUSSIA IS EXTENDING THEIR EXPORT BAN THROUGH THE COMING MONTH. IT DOESN'T MATTER THAT THE CRUDE IS COMING, WE HAVE A REFINED PRODUCT PROBLEM. KAILEY: HEATHER CONLEY, THANK YOU FOR JOINING US. STILL AHEAD, THE PRESIDENT AND VICE PRESIDENT CRISSCROSSING RED STATES TO SHORE UP THE BASE. MORE WITH PATRICK MCHENRY UP NEXT. KAILEY: THIS IS "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. PRESIDENT TRUMP IS BACK ON THE CAMPAIGN TRAIL TODAY IN NEBRASKA BEFORE HEADING TO TEXAS WEDNESDAY AS REPUBLICANS FIGHT TO HOLD THEIR MAJORITIES. THE ECONOMY FRONT AND CENTER WITH TRUMP EXPECTED TO ANNOUNCE NEW RELIEF FOR FARMERS INCLUDING EASING LIMITS ON TAX-FREE DIE DIESEL. THE PRESSURE STRETCHING BEYOND THE ECONOMY WITH REPUBLICAN MONEY SHIFTING AWAY FROM MICHAEL WHATLEY IN NORTH CAROLINA AS THE PARTY WEIGHS WHERE TO SPEND IN THE FINAL WEEKS. JOINING US IS PATRICK MCHENRY, NOW A BLOOMBERG MR. CHAIRMAN, ALWAYS GOOD TO HAVE YOU ON BALANCE OF POWER. CAN WE BEGIN IN NORTH CAROLINA AND THE MONEY THAT IS LEAVING THE STATE, NOT THERE TO SUPPORT MICHAEL WHATLEY. WE HAVE TALKED ABOUT HOW MORE MONEY MIGHT BE ABLE TO HELP HIS CAUSE. WHAT IS HE GOING TO DO IN HIS ABSENCE -- IT'S ABSENCE? PATRICK: THE REALITY IS THAT THE DOLLARS TELL THE TALE. YOU CAN SEE THE SENATE MAP AND THE HOUSE MAP IN VIVID RELIEF WHERE YOU SEE THE DOLLARS ARE SPENT AND HOW THEY ARE SPENT. THE NORTH CAROLINA MONEY IS BEING SPENT IN TEXAS. KEN PAXTON IS A VERY TROUBLED NOMINEE AND MICHAEL WHATLEY IS NOT ABLE TO GET ENOUGH OF AN UPTICK IN ROY COOPER HAD THIS GENERIC BUT GOOD ENOUGH POPULARITY THAT IT MADE THE CONTEST LOOK MORE FAVORABLE TO THE DEMOCRATS AND THEREFORE SCARE OUT REPUBLICAN MONEY OR FRANKLY ALLOCATED TO WHERE THEY MOST DESPERATELY NEED TO WIN AND THAT WOULD BE IN A RED STATE, A DEFENDABLE RED STATE LIKE TEXAS. JOE: THE AD BUYS OR SOMETHING, TEXAS, WE ARE TALKING ABOUT KANSAS. WHICH PRESIDENT TRUMP WON BY 16 POINTS. OHIO BY 11, IOWA BY 13, ALASKA WHERE JD VANCE WAS BY 13 POINTS. ARE WE IN A WORLD WHERE THERE ARE MULTIPLE LANES POTENTIALLY FOR DEMOCRATS TO TAKE THE SENATE? THEY COULD STILL WIN THE CHAMBER WITHOUT MAINE OR MICHIGAN FOR INSTANCE? PATRICK: YES, THE FIRST THING TO NOTE IS THAT THE SENATE MAP IS VERY FAVORABLE TO REPUBLICANS. THE SENATE MAJORITY FOR REPUBLICANS RUNS THROUGH TRUMP LED -- WON RED STATES. THAT IS THE STORY. THE ENVIRONMENT TELLS THE TALE. REPUBLICANS ARE ON THE DEFENSIVE, ONLY ON OFFENSE IN MICHIGAN AND NO HAMPSHIRE TO DEMOCRATS THAT ARE RETIRING THEIR MAKE FOR AN INTERESTING CONTEXT FOR THE SENATE RACE BUT THE TALE IS THROUGH TRUMP WON STATES. THAT IS WHY PRESIDENT TRUMP GETTING OUT AND DEPLOYING HIS WAR FROM MAGA INC. REALLY MATTER IN AN ELECTION LIKE THIS AND WHEN YOU ARE TALKING ABOUT VERY NARROW ELECTIONS WE WILL SEE FOR THE HOUSE AND THE SENATE, A MULTITUDE OF THEM, EACH LITTLE BIT OF TURNOUT, EACH HALF PERCENTAGE POINT HERE OR THERE WILL MAKE A BIG DIFFERENCE IN THE MAP, MITIGATING ARM IS REALLY WHAT THIS TRAVEL IS ABOUT AND REPUBLICAN SPENDING IS ABOUT, MITIGATING THE LOSSES. KAILEY: LET'S FOCUS A BIT MORE ON THE HOUSE BECAUSE THE MAN WHO HAS YOUR OLD JOB CHAIRING THE HOUSE FINANCIAL SERVICES COMMITTEE, CONGRESSMAN FRENCH HILL, IS ON THE DCCC'S RED TO BLUE LIST, BELIEVING THEY MIGHT BE ABLE TO FLIP HIS SEAT. DO YOU BELIEVE THERE IS A REMOTE CHANCE OF THAT HAPPENING? PATRICK: LOOK, LITTLE ROCK HAS ALWAYS BEEN A COMPETITIVE PLACE THE LAST 20 YEARS, FRANKLY FOR REPUBLICANS AND DEMOCRATS AND HE HAS THAT LITTLE ROCK-BASED CONGRESSIONAL SEAT. I WILL TELL YOU WHAT IS A FOOLS ERRAND. WHAT THE DEMOCRATIC PARTY WANTS TO DO IS EXPAND THE PLAYING MAP TO PUT REPUBLICANS FURTHER ON DEFENSIVE IN THE HOUSE. I THINK THIS IS MUCH MORE ABOUT THE NARRATIVE THEN ABOUT THE REALITY HERE. CONGRESSMAN HILL, MY FRIEND FRENCH HILL HAS DONE A FABULOUS JOB RAISING FUNDS. YOU HAVE NATIONAL MONEY COMING IN FOR THAT RACE ON BOTH SIDES. I THINK THIS IS TRYING TO SHIFT THE NARRATIVE FOR DEMOCRATS AND THEM FOR PRESSING THEIR ADVANTAGE. I THINK FRENCH IS REALLY A WARRIOR WHEN IT COMES TO ELECTIONEERING. JOE: PRETTY REMARKABLE TO SEE THE DCCC GOING AFTER THE TRUMP PLUS 20 DISTRICTS. I WANT TO TALK ABOUT THE WORK OF CONGRESS, GOD FORBID, MR. CHAIRMAN. YOU HAVE A POTENTIAL CR TO KEEP THE GOVERNMENT OPEN AND IT SEEMS TO BE WIDELY EXPECTED THAT WILL HAPPEN SO WE DON'T SHUT DOWN IN THE MIDDLE OF DECEMBER BUT THERE WILL BE A ROBUST DEBATE OVER THE DEBT LIMIT I SUSPECT AND THERE ARE QUESTIONS ABOUT WHETHER REPUBLICANS WILL ACT IN THE LAME-DUCK SESSION. IF DEMOCRATS TAKE THE MAJORITY, TO GET THIS DONE FOR THE REMAINDER OF PRESIDENT TRUMP'S SECOND TERM, DO YOU SEE THAT HAPPENING IN THE FORM OF RECONCILIATION OR ANY OTHER WAY? AND I KNOW HOW YOU FEEL ABOUT A LAME-DUCK, CONGRESSMAN? PATRICK: A LAME-DUCK IS CALLED A LAME-DUCK FOR A REASON, IT IS AN ALMOST DEAD DOCK AND THEY ARE USUALLY PRETTY LAME. WHAT THE REPUBLICAN SHOULD DO IS LEARN THE LESSON OF THE BIDEN ADMINISTRATION WHICH IS WHEN YOU HAVE A TRIFECTA, THE HOUSE, SENATE, AND WHITE HOUSE, YOU SHOULD PASS THE DEBT FAR AHEAD OF TIME OR THE OPPOSITION PARTY WILL LEVERAGE YOU TO THEIR ADVANTAGE. THAT IS WHAT PRESIDENT BIDEN WHEN WE WERE NEGOTIATING WHEN SPEAKER MCCARTHY ASKED ME TO NEGOTIATE AROUND THE WHITE HOUSE -- WITH THE WHITE HOUSE AROUND THE DEBT LIMIT, AT 1.1 A BIDEN STAFFERS LOOKED AT ME AND SAID, WE SHOULDN'T EVEN BE HERE. I SAID, THAT'S RIGHT, WHEN YOU HAD THE MAJORITY, YOU DIDN'T DO IT AND NOW YOU HAVE TO DEAL WITH ME AND YOU HAVE TO DO WITH REPUBLICANS IN CONGRESS. [LAUGHTER] IT ACTUALLY RESULTED IN LAUGHTER BUT IT WAS A PRETTY TENSE MOMENT. YOU HAVE THE POWER YOU NEED TO USE IT TO THE MAXIMUM BENEFIT OF YOUR PARTY AND THE AGENDA AND THE BENEFIT OF THE AMERICAN PEOPLE. IF YOU GOT THE DEBT CEILING OUT OF THE WAY IT WOULD EASE THE DRAMA WHERE THE DEBT CEILING WILL BECOME THE FULCRUM POINT NEXT YEAR FOR THE DEMOCRATS TO LEVERAGE THEIR POLICY INTO LAW OVER THE PRESIDENT'S OBJECTIONS AND MORE DRAMA AROUND A TREASURIES MARKET THAT COULD BE MUCH MORE SIGNIFICANT THAN IT WAS IN MAY 20 23 WHEN WE NEGOTIATED THE DEBT CEILING. LAST. KAILEY: WE ARE ALREADY SEEING DRAMA AND THE TREASURY MARKET WITH YIELDS AT THE HIGHEST LEVEL SINCE 2002. WHERE DO YOU SEE THE DRIVER OF THAT PRIMARILY BEING? IS IT COMING FROM HERE IN D.C. OR IS THIS SIMPLY A GLOBAL STORY HAVING TO DO WITH CHALLENGES GOVERNMENTS ARE FACING BROADLY, NOT JUST HERE AT HOME? PATRICK: THIS IS A GLOBAL STORY OBVIOUSLY OF THE FIRST WORLD HAVING DEBT AND DEFICITS WAY TOO HIGH AND UNSUSTAINABLE. IT IS A GROWTH STORY OF ALLOCATING RESOURCES. INTO THE AI INFRASTRUCTURE BUILD IS CERTAINLY INTO THIS. ON CAPITOL HILL, TREASURY AND THE FED ARE DRIVERS OF THIS CONVERSATION AND THEY ARE TRYING TO HAVE A NEW REALITY FOR HOW THE TREASURY AND THE FED WORKED TOGETHER, HOW THEY MESSAGE TO THE MARKETPLACE AND THEY ARE A BIT CHOPPY IN THIS A GO OF IT AND I THINK THAT IS HAVING ANOTHER EFFECT AS WELL. JOE: GOOD TO HAVE YOU BACK, MR. CHAIRMAN, THE FORMER HOUSE FINANCIAL SERVICES CHAIR AND FORMER SPEAKER PRO TEM, PATRICK MCHENRY. WE TURN TO THE SUPREME COURT WITH JUSTICES HEARING ARGUMENTS IN A CASE FOR THE ENERGY INDUSTRY. CONSIDERING WHETHER BOULDER, COLORADO, CONSUME EXXON AND SUNCOR ENERGY -- CAN SUE EXXON AND SUNCOR ENERGY FOR THE EFFECTS OF CLIMATE CHANGE. WHAT DID YOU LEARN, GREG? GREG: IT'S COMPLICATED. [LAUGHTER] THE BASIC QUESTION IS THEY ARE TRYING TO SUE UNDER COLORADO STATE LAW AND THE ENERGY COMPANIES SAY YOU CAN'T DO THAT BECAUSE THIS IS A FEDERAL ISSUE. THE CONSTITUTION DOESN'T LET YOU SUE LIKE THAT AND IT IS AN INTERNATIONAL ISSUE THAT GETS IN THE WAY OF THE PRESIDENT'S FOREIGN AFFAIRS POWERS. THE SUPREME COURT HAS A LOT OF OPTIONS, THEY COULD KNOCK OUT JUST THE BOULDER SUIT. THEY COULD KNOCK OUT THE DOZENS YOU TALKED ABOUT. THEY COULD DO IT IN DIFFERENT WAYS. SOME SKEPTICISM OF THE SUIT. KAILEY: OF COURSE IT'S IS JUST THE FIRST CASE THEY ARE HEARING IN THIS NEW TERM SAW --SO WHAT OTHER ONES ARE WE EXPECTING? GREG: ONE VERY HIGH-PROFILE ONE WILL BE OVER ASSAULT WEAPONS, SEMI AUTOMATIC WEAPONS THAT ARE IN WIDESPREAD USE. THE SUPREME COURT IS GOING TO CONSIDER WELL -- WHETHER THE CONSTITUTION SECOND AMENDMENT PROTECTS THOSE. LOWER COURTS ARE GENERALLY SAYING STATES HAVE THE ABILITY TO BAN THEM. ABOUT 11 STATES DO THAT, BUT THIS IS A COURT THAT IS VERY PROTECTIVE OF SECOND AMENDMENT RIGHTS. KAILEY: BLOOMBERG'S GREG STOHR COVERING THE SUPREME COURT WITH US. THE WHITE HOUSE CHIEF OF STAFF SAYS MONEY CAN'T FIX A RACE IN TEXAS. WE ARE JUMPING INTO IT ON "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. >> AT THE END OF THE DAY YOU HAVE TO THINK REPUBLICANS ARE NOT GOING TO SWITCH OVER TO VOTE FOR A DEMOCRAT. THE QUESTION IS ARE THEY GOING TO SHOW UP TO VOTE AT ALL? I'M SURE A LOT OF REPUBLICANS ARE GOING TO VOTE FOR PAXTON WHO SAY THEY ARE NOT GOING TO. THERE IS PROBABLY NOT ENOUGH MONEY TO FIX KEN PAXTON. KAILEY: I'M KAILEY LEINZ ALONGSIDE JOE MATHIEU AND THAT WAS THE FORMER ACTING WHITE HOUSE CHIEF OF STAFF IN THE FIRST TRUMP ADMINISTRATION MICK MULVANEY WEIGHING IN ON THE RACE IN TEXAS. PRESIDENT TRUMP IS HEADING BACK TO THE LONE STAR STATE WEDNESDAY AS REPUBLICANS DO EVERYTHING THEY CAN TO BOOST REPUBLICAN NOMINEE KEN PAXTON. PAXTON FORCING FRUSTRATION WITH HIS OWN CAMPAIGN, SAYING HE HAS NEVER BEEN IN A RACE WHERE HE HAS FELT LESS CONTROL. JAMES TALARICO SHOWN TO HOLD A SIX POINT LEAD OVER PAXTON AMONG LIKELY VOTERS ACCORDING TO NEW YORK TIMES/SIENA PAUL. JULIE, MICK MULVANEY DOESN'T THINK THERE IS ENOUGH MONEY TO FIX THE KEN PAXTON PROBLEM BUT CERTAINLY THERE IS A LOT OF MONEY FLOODING INTO TEXAS THAT IS TRYING. JULIE: THERE IS SO MUCH MONEY FLOODING INTO TEXAS. IF YOU WATCH A FOOTBALL GAME, IF YOU'RE WATCHING NEWS IN THE EVENING ALL YOU ARE GOING TO SEE OUR AD'S THAT RACE. ONE THING THAT DID STICK OUT TO ME THAT MICK MULVANEY SAID IS THERE WILL BE REPUBLICANS WHO WILL NOT SAY THEY ARE VOTING FOR KEN PAXTON, BUT THEY WILL STILL VOTE FOR KEN PAXTON. SO DON'T COUNT THAT NUMBER OUT AS YOU LOOK AT THE POLLS IN THIS RACE. JOE: IT IS ANOTHER DAY AND ANOTHER AUDIO RECORDING OF THIS CANDIDATE, JULIE. THE PRESIDENT WAKES UP AND SEEMS PRETTY FREQUENTLY TO DIRECT QUOTES FROM PAXTON SAYING THINGS AREN'T NECESSARILY FLATTERING TO HIM INCLUDING THE RNC, THE MIDTERM CONVENTION YOU COVERED WITH KAILEY ACTUALLY HURT HIS CAMPAIGN. NOW IT IS APPARENTLY BEING RUN BY WASHINGTON. HE SAID IT COMES DOWN TO YOUR MATCH -- MESSAGING WHICH IN A FEDERAL RACE COMES DOWN TO OTHER PEOPLE A LOT OF TIMES WHICH YOU DON'T CONTROL. IS PAXTON OUT OF CONTROL OF HIS OWN CAMPAIGN? JULIE: I WILL TELL YOU WHAT IT APPEARS HE IS NOT IN GOOD CONTROL OF WHICH IS PEOPLE ATTENDING HIS EVENTS. AFTER THE FIRST TIME YOU WOULD THINK THEY WOULD MAKE SURE PEOPLE ARE NOT SECRETLY RECORDING WHAT YOU ARE SAYING AND GIVING IT TO NEWS OUTLETS. IN TERMS OF WHETHER OR NOT YOU ARE IN CHARGE OF YOUR OWN CAMPAIGN THAT CAN BE LOOKED AT IN MANY WAYS. ONE OF HIS CAMPAIGN SPOKESPEOPLE SAID THAT HAS TO DO WITH COORDINATING WITH PACS. IT DOESN'T LOOK LIKE THERE IS A TON OF CONTROL IN A CAMPAIGN WHEN THIS NEWS KEEPS LEAKING AND THIS IS WHAT THE ATTORNEY GENERAL KEEPS SAYING. ON TOP OF THAT, EVERY TIME DONALD TRUMP COMES TO DRUM UP SUPPORT FOR KEN PAXTON, HE IS ALSO TAKING SHOTS AT HIM IN THE MEANTIME. THAT MAKES NEWS AND THAT IS WHAT PEOPLE END UP TALKING ABOUT FOR SOME TIME AFTER THOSE EVENTS. JOE: JULIE, WE APPRECIATE IT. JULIE FINE WITH US ON "BALANCE OF POWER." RECALLING THE REST OF THAT QUOTE, I DON'T HAVE THE ABILITY TO CHANGE ANYTHING, SO I HAVE TO LIVE WITH WHATEVER EVER GOD. LET'S PLAY IT TO OUR POLITICAL PANEL, CONTRIBUTORS JEANNE SHEEHAN ZAINO, OUR DEMOCRATIC STRATEGIST, ALONGSIDE REPUBLICAN STRATEGIST RICK DAVIS, PARTNER AT STONECOURT CAPITAL, ALSO A BLOOMBERG CONTRIBUTOR. RICK, I'M NOT SURE YOUR THOUGHTS ON THIS BECAUSE OBVIOUSLY WASHINGTON IS GOING TO DIRECT CERTAIN MESSAGING IN A CAMPAIGN RECEIVING SO MUCH MONEY BUT I DON'T HAVE THE ABILITY TO CHANGE ANYTHING? IS DONALD TRUMP RUNNING THE CAMPAIGN? RICK: IT IS PRETTY CLEAR KEN PAXTON IS NOT RUNNING HIS OWN CAMPAIGN AND WHEN HE WAS IT WAS A DISASTER. SO THIS MAY BE THE BEST THING THAT HAS EVER HAPPENED TO KEN PAXTON'S CAMPAIGN. HE MAY BE THE WORST REPUBLICAN CANDIDATE RUNNING FOR THE SENATE TODAY. WASHINGTON SAYS, WE ARE GOING TO COMMIT HUNDREDS OF MILLIONS OF DOLLARS, WE WORKED HARD TO RESET MONEY AND WE NEED TEXAS SO YOU DO WHAT WE TELL YOU TO DO AND LET US HANDLE THE REST. THAT IS NOT UNUSUAL IN A HIGH-PRESSURE CAMPAIGN LIKE THIS WHERE THE STAKES ARE SO BIG. KAILEY: THE STAKES ARE VERY BIG AND KEN PAXTON'S ESTRANGED WIFE WHO FILED FOR DIVORCE ON BIBLICAL GROUNDS IS NOW OUT IN AN AD THAT SAYS HOLD YOUR NOSE AND VOTE FOR THE REPUBLICAN NO MATTER HOW YOU FEEL ABOUT THAT. HOW DO YOU THINK JAMES TALARICO AND HIS CAMP ARE INTERPRETING ALL OF THIS? JEANNE: I THINK THEY ARE INTERPRETING AT THE SAME WAY WHICH IS WE ARE INCREASINGLY HEARING AND SEEING KEN PAXTON AS REALLY DESPERATE. HE SOUNDS THAT IN THESE VIDEOS. MANY REPUBLICANS ARE JUST DISMAYED. WHEN YOU HAVE $10 MILLION A WEEK POURED INTO YOUR CAMPAIGN AND YOU ARE NOT GOING UP IN THE NUMBERS, THAT IS DEVASTATING. I'M WONDERING AT WHAT POINT DO REPUBLICANS DECIDE, YOU KNOW WHAT, WE ARE WASTING MONEY AND WE COULD USE THIS MONEY ELSEWHERE BECAUSE THIS GUY IS NOT JUST A WORSE CANDIDATE NOW, I THINK YOU ME -- MAYBE IN THE RUNNING FOR THE WORSE CANDIDATE EVER IN TERMS OF MODERN HISTORY IN TERMS OF RUNNING FOR THE SENATE. THE SAD PART OF THIS IS REPUBLICANS KNEW THIS, THEY TRIED TO TELL TRUMP AND HE JUST IGNORED THEM. JOE: THAT WOULD BE QUITE A DISTINCTION. HOW ABOUT WE HEAR THE AD, THIS IS ANGELA PAXTON ENDORSING THE REPUBLICAN TICKET. >> I'M TEXAS SENATOR ANGELA PAXTON. PEOPLE HAVE ASKED MY THOUGHT ABOUT THIS ELECTION AND I HAVE SOME. LET'S TALK ABOUT IN THE ELEPHANT IN THE ROOM AND A GENERAL ELECTION IT IS NOT AS MUCH ABOUT THE INDIVIDUAL PLAYERS ON THE TEAM, IT IS ABOUT GETTING THE WHOLE TEAM ON THE FINISH LINE. EITHER WE HOLD EVERY REPUBLICAN SEAT OR WE HAND THE FUTURE OF TEXAS TO THE OTHER TEAM. THAT'S WHY AM VOTING FOR THE REPUBLICAN TICKET ON NOVEMBER 3. LET'S HOLD THE LINE TOGETHER. JOE: WELL, YOU GOT THE WHOLE THING THERE. I'M TRYING TO REMEMBER WHO IS ON THE REPUBLICAN TICKET. [LAUGHTER] HER ESTRANGED HUSBAND, KEN PAXTON OF COURSE. DOES AN AD LIKE THAT HELP? RICK: WE WON'T GET INTO THE RAILROAD COMMISSIONERS RACE. [LAUGHTER] THEY USED TO HAVE ONE TICKET VOTING WHERE YOU PULL THE LEVER AND YOU SET I'M A REPUBLICAN AND YOU VOTE FOR ALL THE REPUBLICAN CANDIDATES. THAT WAS I THINK 2016 OR SOMETHING LIKE THAT SO THIS IS NOT UNUSUAL, IT IS NOT CRAZY TO THINK JUST VOTE FOR THE TICKET. JOE: AND DIVORCING ON BIBLICAL GROUNDS? RICK: IT IS RIGHT OUT OF WHAT WOULD JESUS DO? WHEN IS THAT AD GOING TO SHOW UP? JOE: HE WOULD HAVE GOTTEN DIVORCED APPARENTLY. RICK: I THINK EVERY TIME SHE IS ON TV IT REMINDS PEOPLE OF A FAILED MARRIAGE AND DIVORCE ON BIBLICAL GROUNDS. THAT IS THE MESSAGE YOU GET FROM THAT AD. STOP RUNNING THE AD. [LAUGHTER] KAILEY: I'M NOT SUPER EXCITED TO TALK ABOUT THE AD. [LAUGHTER] IT HAS MADE THE ROUNDS ON SOCIAL MEDIA, FOR OUR AUDIENCE ON RADIO I'M GOING TO DESCRIBE THIS, STEVE HILTON, THE REPUBLICAN NOMINEE FOR GOVERNOR PUTS OUT AN AD, TWO YOUNG WOMEN SITTING ON THE BED, ONE ENCOURAGES THE OTHER TO TRY SOMETHING AND IT IS SPECIFICALLY TRYING TO FILL IN THE BALLOT FOR STEVE HILTON. HERE IS A PART OF IT. >> I CAN'T BELIEVE I'M DOING THIS. >> DON'T BE NERVOUS. IT'S NOT THAT BAD. >> I'VE JUST NEVER DONE ANYTHING LIKE THIS BEFORE, WHAT IF MY DAD FINDS OUT? >> JUST TRY IT. CLOSE YOUR EYES. NOW DO ALL THE WORK. SEE? >> I THINK I LIKE IT. JOE: WOW. SHE WAS FEELING -- KAILEY: CIRCLING THE STEVE HILTON SECTION OF THE BALLOT BUT THERE ARE SOME SUGGESTIVE UNDERTONES. DOES THIS DO ANYTHING FOR STEVE HILTON? WHAT WAS HE TRYING TO ACCOMPLISH? JEANNE: I THINK IT'S BAD WHEN THE CANDIDATE COMES BACK AFTERWORDS AND ASKS VOTERS FOR GRACE. HE SAID, I WOULD LIKE GRACE AND UNDERSTANDING FROM THE VOTERS FROM CALIFORNIA FOR THE CAMPAIGN METHODS. THE CAMPAIGN METHODS ARE IMPORTANT, THEY ARE USING YOUNG WOMEN ENDED DESPICABLE WAY, IT IS ALSO CREEPY AND WEIRD. I CAN'T EVEN IMAGINE WHAT THEY WERE THINKING. [LAUGHTER] BUT THIS IS NOT THE WAY. WHATEVER HAPPENED TO THE REPUBLICAN PARTY OF THE PAST WHICH TALKED ABOUT FAMILY VALUES? THIS IS STUNNING. THEY SHOULD APOLOGIZE AND TAKE IT OFF THE AIR IMMEDIATELY. JOE: I'M GLAD WE DIDN'T PLAY THE PART WITH A LICK THE ENVELOPE. CREEPY AND WEIRD AS THE HEADLINE IN THE NEW YORK TIMES. YOU HAVE MADE A LOT OF ADS, THEY GOT US TALKING, IS THAT THEY WORK? RICK: THIS IS A COLLEGE REPUBLICAN TACTIC. [LAUGHTER] WE USED TO PUT SIGNS AROUND CAMPUS, GREAT SEX, COME TO OUR MEETINGS. THEY WOULD COME TO OUR MEETINGS AND SIGN UP. JOE: JEEZ. RICK: I THOUGHT SOME COLLEGE REPUBLICAN WROTE THIS. JOE: THE POINT IS TO GET PEOPLE TALKING. RICK: YOU WANT THEM TALKING ABOUT THE RIGHT THING, YOU DON'T WANT THEM SAYING, THE GOVERNOR, OR STEVE HILTON THE CANDIDATE FOR GOVERNOR IS TOTALLY OUT OF TOUCH WITH REALITY HERE. FOR WHAT AN OBNOXIOUS AD, TAKE IT DOWN PLEASE RIGHT AWAY. THAT DOES NOT GET YOU VOTES. [LAUGHTER] IT MAY FILL THE ROOM FULL OF PEOPLE BUT YOU ARE NOT GOING TO GET THEM TO SUPPORT IT. JOE: THAT IS CALLED TWO THUMBS DOWN. KAILEY: OK. ROTTEN TOMATOES. NOT A GOOD ONE FROM RICK DAVIS AND JEANNE SHEEHAN ZAINO. PRESIDENT TRUMP IS GOING TO BE TAKING THE STAGE JUST ABOUT AN HOUR FROM NOW IN PART TO RALLY SUPPORT FOR SENATOR PETE RICKETTS WHO IS FACING DAN OSBORNE WHO CAME CLOSER THAN YOU WOULD EXPECT TO DEB FISCHER IN THE LAST ELECTION CYCLE. WHAT IS THE MESSAGE PRESIDENT TRUMP NEEDS TO DELIVER TO NEBRASKA TO MAKE SURE THE SUPPORT OF THE BASE IS STILL THERE? JEANNE: WHAT HE NEEDS TO DELIVER HIS GET OUT TO VOTE BECAUSE WE ARE GOING TO FIX THE ECONOMY, WE ARE GOING TO ADDRESS THE PROBLEM WITH TARIFFS, GET US OUT OF THIS ENDLESS WAR, BRING DOWN COSTS. HE NEEDS TO FOCUS ON THE ECONOMY AND COST OF LIVING WHICH IS KILLING REPUBLICANS BUT BASED ON WHAT HE DID IN OHIO OVER THE WEEKEND I'M NOT SURE HE IS GOING TO DO THAT. IN FACT I TAKE THAT BACK, I'M QUITE SURE HE IS NOT GOING TO DO THAT AND THAT IS THE PROBLEM. JOE: HE IS BACK IN FARM COUNTRY, HE HAS A GOOD STORY TO TELL IF IN FACT HE PUTS THIS EO FORWARD ON THE RED DYE DIESEL NOT OF THAT IS A HOUSEHOLD TERM. THE FACT OF THE MATTER IS YOU WOULD LOP A QUARTER OFF THE PRICE OF DIESEL THAT HAS DOUBLED IN THE LAST SIX MONTHS, IT'S NOT GOING TO MAKE MUCH OF A DIFFERENCE FOR THE FARMERS. WILL THEY STARE VOTE FOR HIM? DESK OF FOR HIM? RICK: IT'S A TALKING POINT TALKING ABOUT ISSUES AROUND THE KITCHEN TABLE, TALKING ABOUT AFFORDABILITY AND COST OF LIVING. THIS IS A CORE ONE FOR FARMLAND. I THINK IT IS GREAT. I'M ACTUALLY, I THINK IT HELPS OFFSET SOME OF WHAT HE SAID ABOUT BEEF. HERE HE IS IN OMAHA, NOT IN OMAHA, BUT IN NEBRASKA, AND THE BIGGEST ISSUE FOR THEM ARE THE DECISIONS HE MADE TO IMPORT CHEAP FOREIGN BEEF. SO, ARE YOU OFFSETTING THAT? NO. YOU NEED SOME KIND OF CONCERTED MESSAGE THAT IS CONSISTENT IN FARMLAND TO GET THEIR ATTENTION OTHERWISE THEY THINK YOU ARE JUST SORT OF BRASHING AROUND TRYING TO MAKE ONE GROUP HAPPY IN THE SUBURBS WHILE THE FARMLAND SUFFERS AND VICE VERSA. KAILEY: THIS IS THE SAME REASON MONEY IS FLOODING INTO KANSAS AND SENATOR ROGER MARSHALL IS VULNERABLE. YOU THINK PETE RICKETTS IS VULNERABLE? RICK: LOOK, PUBLIC POLLS RIGHT NOW ARE USUALLY ALL WRONG. IT IS A TWO-POINT RACE. YOU ARE THE THE POLLS OR YOU DON'T BELIEVE THE POLLS. I AGREE WITH YOU, I THINK YOU FOLLOW THE MONEY. THERE IS A REASON TENS OF MILLIONS OF DOLLARS ARE GOING INTO KANSAS AND IT IS NOT THE POLLING, IT IS THE RACE ITSELF. THERE IS A REASON THE PRESIDENT IS IN NEBRASKA. RICKETS SHOULD BE A PIECE OF CAKE AND IT IS NOT. JOE: REMARKABLE MOMENT WE ARE IN. KAILEY: INDEED. FOLLOWING THE MONEY IN FOLLOWING THE ADS WITH JEANNE SHEEHAN ZAINO AND RICK DAVIS. FOR MORE COVERAGE, CHECK OUT THE WASHINGTON EDITION NEWSLETTER ON THE TERMINAL AND ONLINE. JOE: TOMORROW IS ONE MONTH, RIGHT? KAILEY: FOUR WEEKS. JOE: UNTIL WE ARE TALKING ELECTION RESULTS WITH RICK AND JEANNE. WE WILL SEE YOU BACK HERE TOMORROW ONLY ON BLOOMBERG TV AND RADIO.