Trump Campaigns in Red States, Fed Minutes From September Rate Hike | Bloomberg This Weekend

>> COMING UP ON BLOOMBERG THIS WEEKEND. ATTORNEY GENERAL TODD BLANCHE TALKS ABOUT JEROME POWELL. ADDING. >> I THINK IT'S PRECLEARED NOT ACT APPROPRIATELY WITH REGARDS TO OVERSIGHT. DAVID: TREASURY SECRETARY SCOTT BESSENT DOWNPLAYING WORRIES ABOUT RISING YIELDS. >> I CAN CONTROL THE BOND MARKET. WHAT I CAN DO IS TRY TO GET PEOPLE TO SLOW DOWN. DAVID: WHAT TO KNOW BEFORE MARKETS OPEN ON MONDAY. CHRISTINA: TAIWAN'S REPRESENTATIVE TO THE U.S. IS A MESSAGE ABOUT A PLANNED MEETING BETWEEN PRESIDENTS TRUMP AND XI. >> TAIWAN IS NOT ON THE MENU. CHRISTINA: HAPPY SUNDAY WELCOME TO BLOOMBERG THIS WEEKEND LIVE FROM OUR WORLD HEADQUARTERS IN NEW YORK. DAVID: ON OCTOBER THE FOURTH 2026, WELCOME TO OUR LISTENERS AND VIEWERS ACROSS HER BLOOMBERG PLATFORMS RADIO AND TELEVISION AND ON THE BLOOMBERG BUSINESS APP. ENERGY IN FOCUS ON THIS SUNDAY MORNING, MORE FIGHTING IN THE MIDDLE EAST BETWEEN THE HOUTHIS AND YEMENIS AS WELL AS AN OPEC DECISION. CHRISTINA: IN ADDITION TO THAT THERE ARE MORE TANKERS HEADED TO THE U.S. NOW BEEN ALMOST ANY TIME IN HISTORY. ALL THOSE TANKERS TRY TO GET THAT OIL AND EXPORT IT. THAT DOESN'T REALLY HELP THE REFINING CRUNCH IN THE LOAD CAPACITY WHICH IS LIMITED IN SOME OF THESE PORTS SO WE WILL BREAK DOWN HOW THAT PANS OUT. MYLES MILLER HAD AN INTERVIEW WITH ATTORNEY GENERAL TODD BLANCHE. FIRST WE WILL TALK TO LISA MATEO ABOUT THE HEADLINES. LISA: ELECTION POLLS OF OPENED IN BRAZIL. PRESIDENT LULA DA SILVA AND RIGHT WING CHALLENGER FLAW FEEL BOLSONARO REMAIN LOCKED IN A TIGHT RACE. IF NO CANDIDATE RECEIVES A MAJORITY IN THE FIRST ROUND, THE TOP TO ADVANCE FOR RUNOFF ON OCTOBER 25. THE PRESENT CORNELL SPEAKING OUT ABOUT THE ALLEGED GANG RAPE IN 2024 A MORE THAN EIGHT MINUTE VIDEO MESSAGE CALLING THE INCIDENT DEEPLY DISTURBING. >> MY HEART ACHES WHEN I THINK. IT RAISES HEARTBREAKING AND TROUBLING ISSUES ABOUT SEXUAL ASSAULT, DEHUMANIZATION AND ASPECTS OF PARTY CULTURE. LISA: REAFFIRMING HIS COMMITMENT TO SUPPORTING AN INDEPENDENT REVIEW OF CORNELL'S HANDLING OF THE CASE. THE BOARD OF TRUSTEES WOULD ANNOUNCE DETAILS NEXT WEEK. THEY ALSO EXPRESS THE BOARD FROM KATHY HOCHUL'S DECISION OVER TO THE STATE ATTORNEY GENERAL COMMITTING CORNELL SUPPORT TO LEGISLATIVE EFFORTS TO CHANGE NEW YORK'S SEXUAL ASSAULT LAWS. TENNESSEE GOVERNOR BILL LEE SAYS THE HEAD OF THE STATE'S PRISON SYSTEM IS RESIGNING AFTER THE FAILED EXECUTION OF CRYSTAL PIKE. FRANK STRADA SAYS STEPPING ASIDE AS IN THE BEST INTEREST OF THE STATE AND A IS BEING CONDUCTED INTO WHAT WENT WRONG. PIKE'S LAWYERS SAY SHE WAS PLACED ON A VENTILATOR AND WAS UNCONSCIOUS IN THE HOSPITAL. INVESTIGATORS LOOK INTO THE MIND OF THE FED THIS WEEK WITH POLICYMAKERS RELEASING MINUTES FROM ITS LAST MEETING. IT COMES AFTER A SLOW DOWN THE U.S. JOBS MARKET THE DROVE STOCKS HIGHER. THE THOUGHT WITH THE FEDERAL RESERVE WOULD NOT BE FORCED TO LIFT RATES ANYTIME SOON. ATTORNEY GENERAL TODD BLANCHE SAYS U.S. JUSTICE DEPARTMENT IS NOT REOPENING A CRIMINAL INVESTIGATION INTO FORMER FED CHAIR JEROME POWELL. THE SURGING COST IN THE CENTRAL BANK'S BUILDING RENOVATION PRETTY SPOKE WITH MYLES MILLER IN AN EXCLUSIVE INTERVIEW FRIDAY. >> I THINK IT'S CLEAR HE DID NOT ACT APPROPRIATELY AS FAR AS OVERSIGHT. OVER NOT -- NOT YOU KNOW MAKING MISTAKES AND NOT -- HAVING ANY SORT OF OVERSIGHT ISN'T NECESSARILY A CRIME. SO NOT TO TALK ABOUT AN INVESTIGATION FOR TO BE CLOSED THAT AS YOU KNOW. AND THERE'S NOTHING WE ARE NOT LOOKING AN INVESTIGATION TO HIM. LISA: YOU CAN WATCH THAT FULL INTERVIEW ON BLOOMBERG THIS WEEKEND. DAVID: STILL WAITING FOR THIS DOJ INVESTIGATIONS WE WILL SEE HOW THAT DEVELOPS. THE FIRST BATCH OF 100 MILLION BARRELS OF OIL DIESEL WAS SUPPOSED TO BE RELEASED IN THE COMING WEEKS AS THE WORLD'S LARGEST ECONOMIES WERE TO BRING DOWN STEADILY HIGH PRICES THROUGH THE CONFLICT IN THE MIDDLE EAST. >> IT STILL CLOSED ABOVE $100 IS FUTURES OPEN TONIGHT TRADERS WILL BE WATCHING FOR MORE INSTABILITY OVER THOSE SUPPLY CHAINS. JOINING US FROM DUBAI ARE'S ENERGY CORRESPONDENT. ANTHONY I WAS READING ABOUT A COUPLE THINGS SOME -- FIRST I WANTED TO START WITH HOW BIG OF AN IMPACT DO WE THINK THIS RELEASE IS 100 MILLION BARREL RELEASE WILL HAVE IS A JUST GOING TO BE A TEMPORARY? DO YOU THINK IN THE AGGREGATE WE WILL SEE MUCH IMPACT. ANTHONY: A BIG IMPACT IN PRICES BECAUSE THOSE DID TUMBLE ON FRIDAY WHEN THAT RELEASE WAS ANNOUNCED. BUT AS YOU SAY IT'S LIKELY TO BE A TEMPORARY IMPACT. BECAUSE THIS IS A STOCK. SO ONCE THAT STOCK IS PUT INTO THE MARKET AND USED THAT STOCK IS EXHAUSTED AT SOME POINT WHICH MEANS MORE BUYING. ALSO AS DOES HAPPEN WITH STOCKS YOU KNOW THIS IS A MARKET SO WE SEE PRICES GO DOWN WHEN WE HAVE ANNOUNCEMENTS OF NEW RELEASES AND THEN AS WE GET THOSE RELEASES, LEAD TRADERS AND THE INVESTORS WILL START LOOKING AT WHAT ELSE IS IN STOCKPILES AND HOW MUCH IS THERE THAT CAN BE REPLACED IN CASE OF AN EMERGENCY. ONCE WE GET PEOPLE NERVOUS ABOUT THE RISKS OF AN EMERGENCY, LOOK AT THE STOCKPILES DEPLETED AND THAT SOURCE TO EDGE THE PRICES BACK UP. WE CAN LOOK AT THIS IN A POLITICAL CONTEXT SO THIS IS GOING TO BE A TEMPORARY ISSUE THAT IS TEMPORARY THROUGH THE FIRST WEEK OF NOVEMBER. THAT'S WHEN THOSE MIDTERMS ARE IN WE'VE SEEN THE IMPACT OF THIS THE U.S. DIESEL PRICES WHICH SEEMS TO BE VERY FOREFRONT IN THE MIND OF PRESIDENT TRUMP WHEN HE WAS TALKING ABOUT THE POTENTIAL U.S. DIESEL BAND WHICH HE SAYS THE U.S. WILL NO LONGER DO. SO IT IS REALLY THAT THE MEDIUM TERM DECREASE OF THE PUMP PRICES THAT'S SEEMS TO BE THE FOCUS AT LEAST OF DONALD TRUMP'S INTEREST IN THIS WHERE THE EUROPEANS LOOKING TO AVOID EXACTLY THAT DIESEL BAND. SO THERE WILL BE THIS TRANSITORY IMPACT AS YOU SAID IT IS THE ISSUE OF REFINERIES GETTING ENOUGH OF THAT DIESEL TO MARKET THAT STRIVING UP THE PRICES. THAT'S NOT GOING AWAY THAT WILL BE THE ISSUE INTO THE WINTER MONTHS IN THE U.S. AND EUROPE WHERE THAT DIESEL HAS TO BE. >> WHAT WE KNOW ABOUT CHINA'S APPETITE FOR OIL AT THIS POINT IN TIME. WE HEARD A FEW MONTHS AGO THAT WAS A SURPRISE AFTER THIS RUMOR BEGAN THAT THE DEMAND FROM CHINA WAS LESS THAN A LOT OF PEOPLE FEARED IT MIGHT BE. TELL ME ABOUT THAT APPETITE TODAY AND HOW IT'S AFFECTING THE BOND MARKET AT THIS TIME. ANTHONY: ONE OF THE THINGS THAT THEY ARE FOCUSED ON WHEN THE LOOKING AT OIL PRICES AND DEMAND WHAT DOES CHINA RESUMED BUYING. CHINA HAD BEEN SUPPORTING OIL PRICES REALLY GOING UP INTO THE START OF THIS YEAR IF YOU REMEMBER THE END OF LAST YEAR WE TALK ABOUT THIS YOU'RE BEING YEAR OF GLUT WHEN THERE'S TOO MUCH ON THE MARKET AND BRINGING PRICES DOWN. BUYING BY CHINA FOR THAT STRATEGIC SUPPLIES THAT WAS KEEPING THE PRICE SUPPORTED. THEY STOPPED THAT AND THAT'S BEEN ONE OF THE ISSUES THAT ALLOWED PRICES NOT TO SKYROCKET DURING THIS CRISIS BECAUSE CHINA REALLY PULLED BACK ON ITS PURCHASES. SO THEY'RE LOOKING TO SEE WHEN DO THEY RESUME MAYBE THEY DON'T RESUME AT THE SAME PACE AS THEY DID BEFORE MAYBE THEY COME IN A LITTLE SLOWLY. BUT WE'VE ALREADY SEEN SOME REFINERY RELEASES FROM CHINA. THEY HAVE A GOVERNMENT CONTROL SYSTEM OF WHAT REFINERIES CAN RELEASE AND WHAT THEY CAN SELL. THEY'VE KEPT A LOT OF THE FUEL AT HOME DURING THIS CRISIS. THEY'VE ANNOUNCED BUT NOT ALSO. WATCHING THE INTERPLAY BETWEEN WHAT THE CHINESE REFINERIES DO. WHAT THEY WERE POLICE -- PUT ONTO THE MARKET. AND WHAT THEY DO IN TERMS OF THE STOCK BUYING WHICH WILL HAVE AN IMPACT ON THE CRUDE PRICES GOING FORWARD. SO THOSE OF THE BIG QUESTIONS WE ARE WATCHING IN TERMS OF THE CHINA. CHRISTINA: ALSO CHECKING ON THE FIGHT BETWEEN THE HOUTHIS AND THE SAUDI'S. SAUDI MAY BE PLANNING A NEW OFFENSIVE INTO YEMEN TO TRY AND MAINTAIN OR REGAIN CONTROL OF THE RED SEA. WHAT FLUCTUATIONS ON THAT SIDE OF THE PENINSULA MEAN FOR OIL GOING FORWARD? ANTHONY: THAT'S A SITUATION THAT'S BEEN GOING ON OVER THE PAST MONTH OR YOU MIGHT SAY OF PAST SEVERAL YEARS. WE HAD SEEN A CEASE-FIRE BETWEEN THE SAUDI'S AND HOUTHIS THAT CAP THINGS RELATIVELY QUIET SO WE DIDN'T HAVE TO WORRY ABOUT THE RED SEA. IT WAS A BIG EXPORT VALVE AND RELIEF VALVE ABLE TO GET CRUDE INTO GLOBAL MARKETS VIA THE RED SEA. AS WELL AS THAT FOR THE SAUDI'S IS A LOT OF REFINERIES. THAT THEY'VE BEEN SHIPPING INTO EUROPE AND GLOBAL MARKETS. THE INTERRUPTIONS OF THE LAST MONTH HAVE BEEN A BIG ISSUE FOR MARKETS BECAUSE WE HAVE SEEN REFINERS MAKE A MUCH LARGER ROUTE AROUND THE CAPE OF GOOD HOPE AND AFRICA TO GET TO THE MEDITERRANEAN COAST OR INTO THE RED SEA FROM THE NORTH. WE SEEM INTERRUPTIONS TO SHIPMENTS OUT OF THE REFINERIES OF THE PORT AND THAT OF COURSE WE HAD THE EAST-WEST PIPELINE A MAJOR BIT OF INFRASTRUCTURE WAS KNOCKED OFF-LINE BRIEFLY. REPORTED DURING THE LAST WEEK THAT THAT WAS COMING BACK TO PUMPING OIL AND IT REACHED ABOUT 80% OF OUR CAPACITY AS OF ABOUT FRIDAY. THAT WAS COMING BACK ADDING SOME GOOD SUPPLIES TO THE MARKET. AT THE SAME TIME, THE SAUDI'S AND OTHER GULF PRODUCERS HAVE RAMPED UP THEIR EXPORTS THROUGH HORMUZ AS THEY WERE ABLE TO GET THROUGH SOME OF THOSE VESSELS THROUGH THAT CONTESTED STRAIGHT. THAT'S BROUGHT ACTUAL EXPORTS BACK CLOSER TO PREWAR LEVELS. BUT THEN WE STILL HAVE THAT RESTRICTION OF THE REFINERIES ABLE TO TRANSFORM THAT INTO THE FUEL WE NEEDED. SO THAT'S THE RESTRICTION WE ARE HAVING IN THE MARKET OF WHY THAT'S KEEPING THOSE PRICES HIGH FOR THE FUELS IN TERMS OF GROWTH WE ARE SEEING CONTINUED ATTACKS ON VESSELS TRYING TO PASS THROUGH. SO THAT REMAINS AN ACTIVE PART AND THE REMAINS AN ACTIVE RISK. WE HAVE THOSE TWO RISKS TOGETHER , HORMUZ ON THE EXIT OF THE PERSIAN GULF AND THE STREET AT THE END OF THE RED SEA WHICH IS WE ARE SEEING THOSE REPORTS OF THE SAUDI'S OR SAUDI BACKED YEMEN TROOPS AND THE TROOPS WILL BE TRYING TO TAKE THAT BACK FROM THOSE REBELS. AT THE SAME TIME AS THEY CONTINUE TO CLAIM STRIKES WITHIN SAUDI ARABIA YOU MENTION THAT STRIKE ON THE RIYADH REFINERY OVER THE WEEKEND. SO WE ARE FOLLOWING THEM TRYING TO SEE WHAT THE IMPACT OF THOSE ARE AS WE WATCH FOR POTENTIAL FURTHER RISKS DOWN THE LINE. THAT IS THE ISSUE THERE AND LOOKING AT SOMETHING THAT WILL CONTINUE TO IMPACT THE MARKETS. DAVID: ANTHONY, THANK YOU VERY MUCH. CHRISTINA: HIGH ENERGY PRICES ARE ON THE MINDS OF VOTERS IN THIS FINAL MONTH UNTIL THE MIDTERMS CAMPAIGN HAPPENING ALREADY IN OHIO PRESIDENT TRUMP AGAIN PROMISED A $5,000 CHECK FOR EVERY ADULT IN THE COUNTRY IF REPUBLICANS WIN. A PROMISE IT WOULD COST THE COUNTRY AT LEAST A TRILLION DOLLARS. DAVID: ASKING VOTERS TO PRETEND HE IS ON THE BALLOT THROWING SUPPORT BEHIND GOP CANDIDATES. GREAT TO SPEAK WITH YOU AS ALWAYS. LET'S START WITH THAT THE PRESIDENT WAS SAYING LAST NIGHT IN THE WAY DEMOCRATS ARE RESPONDING TO THAT KIND OF RHETORIC. CASTING ASPERSIONS OF DOUBT ABOUT THIS $5,000 CHECK THE PRESIDENT HAS FLOATED BUT YOU SAT DOWN WITH THE MINORITY LEADER HAKEEM JEFFRIES A COUPLE DAYS AGO TO TALK ABOUT THE PATH FORWARD FOR DEMOCRATS BUT WOULD YOU LEARN FROM HIM ABOUT HOW THEY ARE DISTILLING THEIR MESSAGE IN THE REMAINING THREE DAYS TO THE MIDTERMS? >> DEMOCRATS AREN'T SPECIFICALLY CAMPAIGNING ON ANY PIECE OF LEGISLATION THAT THEY PUSH HEADING INTO THE MIDTERMS AS YOU DESCRIBE THE $5,000 CHECKS. WE'LL ALSO SAYING THAT THEY WOULD REPEAL THE PRESIDENT'S TARIFFS THROUGH LEGISLATION IF THEY TAKE BACK THE MAJORITY, OF THE IRAN WAR. THOSE ARE KEY WAYS IN WHICH THEY SAY THEY WILL HELP TO BRING DOWN PRICES WHILE SAYING GENERALLY BUT IT WILL FOCUS ON AFFORDABILITY IN CATEGORIES INCLUDING HOUSING AND HEALTH CARE. SPEAKING TO THE MINORITY LEADER I TRIED TO PRESS FOR MORE DETAILS ON THAT AGENDA AND TRY TO HEAR MORE ABOUT WHAT THEY WOULD DO MORE SPECIFICS AT THIS POINT THEY HAVE THEIR FIVE WORKING GROUPS THAT THEY SAY ARE WORKING ON THESE THINGS SO THEY WILL BE READY TO GO AS SOON AS THE MIDTERMS ARE OVER AND HIT THE GROUND RUNNING. CHRISTINA: WE ARE WORKING ON WORKING SATURATIONS. THERE'S A LOT OF WORKING GROUPS. WHAT I DON'T SEE ARE A LOT OF SPECIFICS EITHER FROM DEMOCRATS OR EVEN THE PRESIDENT. DEMOCRATS THE BIGGEST PITCH OF THE MOMENT SEEMS TO BE HIS VOTE FOR ME I'M NOT THE PRESIDENT AND THE PRESIDENT IS MAKING THE CASE VOTE FOR THEM LIKE I AM BECAUSE I AM THE PRESIDENT. OUR VOTERS REALLY GOING TO BUY EITHER ONE OF THESE? ARE THEY LOOKING FOR SPECIFICS OR WILL THEY JUST GO WITH WHAT IS IMPACTING THE MOST WHICH OF THE MOMENT SEEMS LIKE COST OF LIVING. FRANCESCA: YOU HOUSE SPEAKER MIKE JOHNSON THIS PAST WEEKEND WITH REPUBLICANS WOULD DO AND HE SAID WE WILL KEEP DOING WHAT WE'VE BEEN DOING SO IT'S NOT AS IF REPUBLICANS AT LEAST FIRST SENATE ARE OUT THERE CAMPAIGNING ON SPECIFIC ACTIONS THEY WOULD TAKE AND THE PRESIDENT AS YOU NOTED IS SAYING VOTE FOR ME LIKE I'M ON THE BALLOT PROMISING THESE CHECKS NOT JUST THESE BY THE WAY BUT IN THE LAST COUPLE OF DAYS PROMISED TO GIVE $90 TO SENIORS ACROSS THE COUNTRY. YOU'VE SEEN HIM GIVE OUT THESE OBAMACARE RESIDUAL CHECKS SO PRESIDENT TRUMP IN THE SHORT TERM PUTTING FORWARD THINGS THAT MIGHT HIT VOTERS -- GET VOTERS OUT TO THE POLLS BUT IN TERMS OF HIS SECOND TERM AGENDA WOULD ACTUALLY LOOK LIKE I'M NOT SURE WE HAVE MANY DETAILS ABOUT THAT BEYOND HIM ALSO SAYING HE EXPECTS THE WAR WITH IRAN WILL END IMMEDIATELY AFTER THE ELECTION BECAUSE IRAN IN HIS VIEW IS DRIVING ON THIS WAR INTENTIONALLY HOPING THAT THEY MIGHT GET A BETTER OUTCOME HEADING OUT OF THE MIDTERMS IF DEMOCRATS AT THE HOUSE AND SENATE. DAVID: I WANT TO ASK HOW YOU -- HOW HE CAME TO HER FOR LOOKS OF THE JOB OF EVENTUALLY BEING HOUSE SPEAKER. THE ELECTION STILL A MONTH AWAY BUT A LOOK AT MIKE JOHNSON AND THIS IS BEEN A THANKLESS JOB FOR HIM AS HE'S HAD TO NAVIGATE A CAUCUS THAT'S VERY DESPERATE AND DIVERSE AND IN YOUR VERY GOOD INTERVIEW WITH THE MINORITY LEADER HE RECKONS WITH THAT AS WELL. THERE ARE BLUE DOG DEMOCRATS THOSE ON THE MORE PROGRESSIVE LEFT-WING SIDE OF THE PARTY. HOW WAS HE THINKING ABOUT NAVIGATING THAT PATH GOING FORWARD LOOKING TO BE THE HOUSE SPEAKER IN JANUARY. FRANCESCA: THAT WILL BE ONE OF HIS MOST DIFFICULT TASKS IS KEEPING HIS CAUCUS TOGETHER. WE'VE SEEN MIKE JOHNSON HAS STRUGGLED OVER THE PAST TWO YEARS EVEN WITH A REPUBLICAN PRESIDENT IN THE WHITE HOUSE BEHIND HIM AND HAVING A REPUBLICAN SENATE TO BE ABLE TO MOVE LEGISLATION AT TIMES BEFORE GRINDING TO A HALT REPUBLICANS ABRUPTLY LEAVING WASHINGTON AS A RESULT BECAUSE THEY HAD SOME DEFECTORS IN THE REPUBLICAN PARTY AND HOUSE OF REPRESENTATIVES. HAKEEM JEFFRIES COULD HAVE SOME OF THOSE SAME KINDS OF PROBLEMS IN A DEMOCRATIC MAJORITY WHEN YOU HAVE MODERATES LIKE WHEN YOU'VE SEEN IN RECENT DAYS WHO HAVE VOTED WITH REPUBLICANS AT TIMES THEY WOULD POTENTIALLY HAVE A CROP OF FAR LEFT CANDIDATES WHO BEAT IN, BEEN DEMOCRATS FOR THOSE SEATS. SO POTENTIALLY A MORE PROGRESSIVE CAUCUS, HAVING TO BRING ALL OF THOSE ELEMENTS TOGETHER TO TRY AND PASS LEGISLATION AND THAT IF REPUBLICANS HAVE THE SENATE AND EVEN IF THEY DON'T YOU HAVE TRUMP IN THE WHITE HOUSE, HOW DEMOCRATS WILL ACTUALLY MOVE FORWARD THEIR AGENDA IS A HUGE QUESTION. CHRISTINA: GOING TO BE GREAT, SO GOOD. FRANCESCA CHAMBERS WHITE HOUSE CORRESPONDENT FOR USA TODAY THANK YOU. DAVID: THE WHITE HOUSE FLOATING A NEW AI CZAR. DETAILS FROM TREASURY SECTOR SCOTT BESSENT ABOUT HOW HE'S LOOKING AT THIS ECONOMY AND THE ROLE OF AI. ON BLOOMBERG THIS WEEKEND. ♪ >> THANK YOU FOR JOINING US ALIVE. LET'S OBJECT YOU WANT TODAY'S TOP STORIES. TENS OF THOUSANDS OF PROTESTERS TOOK TO THE STREETS IN MADRID TO DEMAND HELP FOR RENTERS. THEY CALLED FOR A GENERAL STRIKE AND AFFORDABLE HOUSING. IT COMES A DAY AFTER LAWMAKERS REJECTED EMERGENCY MEASURES TO EASE SPAIN'S HOUSING AUTHORITY CRISIS. A FIRE BROKE OUT IN RIYADH YESTERDAY SENDING DENSE BLACK SMOKE INTO THE AIR. IT'S NOT CLEAR WHAT CAUSED THE FIRE AT THE REFINERY WOULD WITNESSES TELL THE ASSOCIATED PRESS AUTHORITIES TIGHTENED SECURITY IN THE AREA. IT COMES AS A SAUDI OIL FACILITIES HAVE RECENTLY BEEN THE TARGET OF MISSILE STRIKES FROM YEMEN'S HOUTHIS. OPEC-PLUS MEMBERS ARE MEETING VIRTUALLY. THE MOVE IS LIKELY TO KEEP OIL PRODUCTION UNCHANGED. AS OIL FUTURES BACK UP TO THE $100 A BARREL MARK. DIESEL HEADING RECORDS OF THE PUMP DURING THE ONGOING CONFLICT IN THE MIDDLE EAST. PRESIDENT TRUMP WANTS TO MAKE DAYLIGHT SAVINGS TIME PERMANENT. IN A SOCIAL MEDIA POST THE PRESIDENT PRESSURE REPUBLICAN SENATOR TOM COTTON OF ARKANSAS TO SUPPORT A BILL TO MAKE IT HAPPEN EVEN GIVING COTTONS PERSONAL CELL PHONE NUMBER. OPPONENTS SAY IT WOULD LEAD TO DARKER AND POTENTIALLY MORE HAZARDOUS WINTER MORNINGS. DAVID: HE PUT HIS CELL PHONE NUMBER IN THE POST? LISA: BE CALLED TO SEE WHAT HAPPENED, THE VOICEMAIL IS FULL. ALL THE THINGS THE PRESIDENT FOCUSING ON. CHRISTINA: WECHRISTINA: WILL DIG INTO THIS MORE LATER IN THE SHOW. DAVID: ALL RIGHT. CHRISTINA: SAME BECAUSE OF THE DIFFERENT TIME ZONES IF YOU'RE ONE OF THE DAY'S -- TIME ZONES IT'S VERY LARGE. IF THEY DO THIS THE KIDS GO TO SCHOOL IN THE DARK. SUPPORTING ARKANSAS FIRST BRITON -- FIRST. DAVID: A TASK FORCE ASSESSING RISKS BY AI. THE WALL STREET JOURNAL SAYS THE DIRECTOR OF NATIONAL INTELLIGENCE WILL LEAD THE EFFORT EFFECTIVELY BECOMING THE ADMINISTRATION'S FIRST AI CZAR. CHRISTINA: THIS AFTER SEVERAL TECH CEOS GATHER THE WHITE HOUSE AND SIGNED COMMITMENT PROMISING TO BETTER SELF POLICE THERE AI MODELS. HERE'S THE TREASURY SECRETARY BESSENT TOLD AXIOS ABOUT AI. >> I BELIEVE WE HAVE TO BE PREPARED FOR EVERY OCCASION. ON THE OTHERS I THINK THIS ALARMISM WITHOUT SOLUTIONS BY SOME OF THE AI COMMUNITY THAT'S NOT LEADERSHIP. >> IT'S THE CEOS BASICALLY SCREAMING FOR REGULATION. >> THAN THEY SHOULD SLOW DOWN. IT IS KIND OF LIKE HANNIBAL LECTOR STOP ME BEFORE I KILL AGAIN. DAVID: HANNIBAL LECTOR -- WAS NOT EXPECTING THAT. CHRISTINA: JOINING US NOW IS BLOOMBERG OPINION COLUMNIST. TO DAVID'S POINT, WHAT YOU MAKE OF THE HANNIBAL LECTOR QUOTE? IF HANNIBAL LECTOR SAID STOP ME BEFORE I KILL AGAIN I WOULD IMAGINE I WOULD LIKE THE POLICE TO DO SOMETHING ABOUT IT AND NOT JUST EXPECT HIM TO POLICE ITSELF. >> THERE ARE SO MANY PROBLEMS WITH THAT QUOTE. FIRST IS A BIG FAN OF THE MOVIE SOUNDS OF THE LAMBS HANNIBAL LECTOR WOULD NEVER SAY STOP ME FOR A KILL AGAIN. SO THE TRUMP ADMINISTRATION TENDENCY TO GET POP-CULTURE WRONG IS ONE OF THOSE MYSTERIES I DON'T KNOW IF WE WANT TO SOLVE. SO THE BROADER POINT IS JUST THAT LIKE COMPANIES CAUGHT IN A COMPETITIVE DYNAMIC EVEN IF THEY WANT TO DO THE RIGHT THING AND DEFTLY FACE ENORMOUS A MARKET PRESSURES TO DO THE WRONG THING. IF YOU WERE A COMPANY THAT WAS DOING -- OFFERING GAMBLING AND YOU DIDN'T WANT TO SERVE ADDICTED GAMBLERS YOU WOULD STILL FACE PRESSURES FROM WALL STREET TO DO IT BECAUSE THAT'S THE EASIEST WAY TO GOOSE YOUR NUMBERS. SO OF COURSE WILL END UP DOING IT. YOU'LL PUSH IN THAT DIRECTION. THE REGULATIONS OF THESE KINDS ARE ACTUALLY GIFTS NOT BURDENS ON ETHICAL BUSINESS PEOPLE BECAUSE THEY GIVE THEM THE LEG OR SHOULD DO THE THING THEY SHOULD NOT BE DOING. THAT THOSE PRESSURES PUSH THEM INTO DOING. IT'S ON ITS FACE WE THINK ABOUT IT'S KIND OF ABSURD LIKE WE'VE SEEN IN THE FINANCIAL MARKETS WHAT HAPPENS WHEN YOU ALLOW LACK OF REGULATION. 2008 WE LIVE THROUGH WHAT HAPPENED THERE. TO SAY COMPANIES ARE JUST GOING TO DO THE RIGHT THING IT'S NOT A PULLBACK WHEN EVERY FORM OF PRESSURE IN THE OPPOSITE DIRECTION. IT MAKES NO SENSE. >> HOW DO YOU THINK ABOUT THE POTENTIAL EFFICACY OF THIS BLUE RIBBON COMMISSION THE SUPER INTELLIGENCE FORCE IS BEING DESCRIBED BY THE WHITE HOUSE. WE HAVE THIS VOLUNTARY FRAMEWORK THIS MORAL AGREEMENT IS THE WHITE HOUSE CALLED IT DURING THE PRESIDENT AND THESE EXECUTIVES. I NOTE THE SPELL UNITED STATES WRONG MAY BE THAT DOCUMENT CAME TOGETHER. CHRISTINA: MY DYSLEXIC SELF DID NOT NOTICE THAT. WHERE DOES THAT GET US HAVING THAT KIND OF MOMENT AND DO YOU HAVE ANY OPTIMISM THAT THIS TASK FORCE IS GOING TO COME TOGETHER TO GIVE US ANYTHING TANGIBLE? GAUTAM: THEY COULD PICK SOME WORSE THAN JAY LAYTON. SO THAT DID GIVE ME A LITTLE BIT OF A GOOD FEELING. AND DAVID I'M GLAD THAT YOUR SUPER INTELLIGENCE GUY TYPOS ALL THE TIME. I MEAN -- LOOK AT THE PEOPLE ON IT. THE -- DID THEY PUT -- TO THE PUT DAVID SACHS ON IT AND HE'S BEEN VERY OPEN ABOUT THE FACT THAT HE JUST WANTS TO PUSH FORWARD. ON THE EXTREME DEREGULATION SIDE ON THE INDUSTRY. HE IS THE AVATAR OF THE PEOPLE IN SILICON VALLEY WHO ARE BASICALLY SAYING THERE ARE NO RISKS THERE'S MONEY TO BE MADE LET'S GO FORWARD AS MUCH AS POSSIBLE WHICH IS OF COURSE THE VIEW PRESIDENT TRUMP IS EXPRESSED ON MANY OCCASIONS. THEY MAY BE RIGHT OR WRONG BUT THIS ADMINISTRATION TO GET THE IDEA THAT THERE ARE NO RISKS" THE PRESIDENT THE ONLY SAFEGUARD YOUR NEED IS A HIGH IQ PRESIDENT AND WE'VE GOT THAT. I HOPE TO BE RELATIVELY SURPRISED AT WHAT THE COME OUT WITHIN 120 DAYS. CHRISTINA: IF YOU CALL DAVID SUPER INTELLIGENT WILL MORE TIME I SWEAR I WILL WALK OFF THE SET. [LAUGHTER] CHRISTINA: I HAVE A QUESTION ABOUT THE NOMENCLATURE THERE BECAUSE WE HAVE THIS PUSH WITH EVERY THING ELSE GOING ON WITH THE PRESIDENT WHERE HE WANTS TO CALL AI SUPER INTELLIGENCE. BUT THIS ALSO CAUSES A PROBLEM BECAUSE IN THE INTELLIGENCE COMMUNITY THAT IS ALREADY A THING IT REFERS TO MILITARY ARMY INTELLIGENCE SECURITY. IT IS ALREADY A THING THAT EXISTS IN THE SPACES WHERE YOU'LL BE TRYING TO HAVE THESE NATIONAL SECURITY DISCUSSIONS. DO WE THINK HE CAN FORCE THIS ADOPTION OR IS THE PRESIDENT JUST TRYING TO MAKE THAT HAPPEN? GAUTAM: I ONLY USE THE TERM WHEN I'M MAKING FUN OF MY FRIENDS. I ALSO NOTE I'M SURE THIS IS PURELY COINCIDENTAL THAT THE .SI DOMAIN NAME WHEN HE MADE THIS ANNOUNCEMENT IT TURNED OUT A LOT OF PEOPLE BOUGHT THOSE IN ADVANCE. I MEAN I'M SURE THAT'S AN ACCIDENT. IT'S FUNNY OBVIOUSLY IT HAPPENED. LIKE, IT IS JUST THE EXTENT TO WHICH THE MINISTRATION SOMETIMES GOES FROM POLICY TO FARCE. DOES ANYBODY CARE WHETHER WE CALL IT ARTIFICIAL INTELLIGENCE OR SUPER INTELLIGENCE? OR IS THIS SOMETHING THE PRESIDENT HAS GRABBED ONTO AND GONE TO TWITTER AND DID A TRUTH SOCIAL POLL ON? I DON'T CARE WHAT WE CALL IT. I CARE A LOT ABOUT THE FACT THAT THESE COMPANIES ARE DOING THINGS WHERE THEY DON'T SEEM TO HAVE CONTROL OVER THEIR OWN INSTRUMENTS, AND WE HAVE NOT CHOSEN TO MAKE ANY MEANINGFUL REFORM TO TRY TO STOP THAT FROM HAPPENING. THAT SEEMS LIKE THE ISSUE THE PRESIDENT SHOULD BE SPENDING HIS TIME ON. DAVID: LET'S MOVE FROM WASHINGTON TO SILICON VALLEY ON THE PRECIPICE OF ANTHROPIC GOING PUBLIC. WE SAW IT'S PROSPECT IS, AND IN THERE WAS THE TECHNOLOGY POSING A RISK TO HUMANITY. THAT WAS IN THE DOCUMENT ITSELF. MAKES ME THINK ABOUT HOW YOU ARE THINKING THE WAY IN WHICH THE BROADER CONVERSATION ABOUT THIS COMPANY AND OTHERS GOING PUBLIC IN THE YEARS AHEAD. GAUTAM: I GUESS IF CLAUDE DOES DECIDE TO GO ROGUE AND EXTERMINATE THE HUMAN RACE, OUR RETURNS WILL NOT BE -- CHRISTINA: DISCLOSE THAT, YEAH. GAUTAM: CLEARLY THERE IS SOME MARKETING COMPONENT HERE. LET'S NOT PRETEND THERE ISN'T. TO SAY I AM BUILDING SOMETHING SO POWERFUL THAT IT MIGHT END HUMANITY BUT YOU MIGHT MAKE MONEY, OF COURSE THAT IS AN INCENTIVE, BUT THE FLIPSIDE IS THE HISTORY OF ANTHROPIC, EVERYTHING ABOUT THIS COMPANY, IT WAS FOUNDED BY A BUNCH OF PEOPLE WHO LEFT OPENAI BECAUSE THEY SAID YOU GUYS ARE NOT SAFE ENOUGH. RIGHT? THEY GOT HAVE A MARKETING POSITION AND YOU CAN ALSO BE GENUINELY SINCERE IN THEIR BELIEF THESE THINGS ARE EXTRAORDINARILY DANGEROUS. THOSE THINGS ARE NOT IN CONFLICT. INSTEAD OF SPENDING ALL THIS TIME ON IT, WE SHOULD VALIDATE THE ARGUMENTS. IS IT TRUE OR NOT TRUE? LET'S SPEND OUR TIME ON THAT, NOT MOTIVATIONS. CHRISTINA: IN THAT VEIN AND WHAT TO DO ABOUT THE RISK OF SOME OF THIS, THERE IS THIS VERY INTERESTING REPORT THAT CAME OUT IN THE NEW YORK TIMES TALKING ABOUT HOW ANTHROPIC EXECUTIVES ARE MAKING THE KEYS TO RELIGIOUS SCHOLARS, INCLUDING THE POPE, FOR HOW MORALITY AND CONSCIOUSNESS IN THESE MODELS AND WE HAVE SEEN PUSHBACK FROM THE POPE. INTERESTING TIMING IN THE UNIVERSE THAT YOU HAVE A PARTICULAR STUDDED -- YOU HAVE A PONTIFF THAT STUDIED MATHEMATICS. AI DOES NOT HAVE A SOUL. ART GENERATED FROM THESE COMPUTERS IS NOT HUMAN ART. WHERE DOES THIS AND UP, AND OUR THEOLOGIANS GOING TO BE TALKING ABOUT THIS FOR THE NEXT DECADES IN OUR LIVES? GAUTAM: WE HAVE A POPE WITH A TECHNICAL BACKGROUND. IF I WAS CATHOLIC, I WOULD SAY IT SOUNDS LIKE AN ACT OF GOD. THERE IS A REALLY INTRIGUING SET OF DEBATES HERE AND ONE OF THE AREAS IN WHICH YOU REALLY PUSHBACK ON THE AI INDUSTRY IS THE EXTENT TO WHICH THERE IS THIS ASSUMPTION THAT BECAUSE WE HAVE AN ENORMOUS AMOUNT OF SCALABILITY OF THESE TOOLS, WE KIND OF UNDERSTAND EVERYTHING, AND THAT IS NOT TRUE. PHILOSOPHERS HAVE BEEN TRYING TO UNDERSTAND THE QUESTION OF HUMAN CONSCIOUSNESS FOR HUNDREDS AND THOUSANDS OF YEARS. WE HAVE NOT SETTLED THAT QUESTION OF WHAT IS CONSCIOUS AND WHAT IS NOT. THE IDEA A BUNCH OF GUYS IN SILICON VALLEY HAVE OBVIOUSLY ANSWERED THIS QUESTION -- I THINK WE CAN BE A LITTLE MORE THAN SKEPTICAL ABOUT THAT. THERE ARE TECHNICAL AREAS WITH THIS, BUT LLM'S WHILE THEY HAVE BROADER CONTEXT WINDOWS HAVE STOPPED TRAINING. THEY DO NOT LEARN A LOT. THEY DO NOT CHANGE A LOT. THEY ARE KINDA FROZEN. IF YOU ARE FROZEN ONCE YOU ARE IN ACTION, CAN YOU BE CONSCIOUS? CONSCIOUSNESS INVOLVES WITH ENGAGING AND CHANGING OVER TIME. THINGS THAT THOSE ELEMENTS DO NOT DO VERY WELL YET. IT IS REALLY INTRIGUING THAT THEY ARE HAVING THIS DEBATE THE PRESSURE IS IF YOU ARE THE SORT OF PERSON WHO DECIDED YOU'RE GOING TO RAISE HUNDREDS OF BILLIONS OF DOLLARS TO BUILD IN THE MOST EXTREME SENSE BUT ANTHROPIC IN PARTICULAR IS THE ONE THAT HAS THE MOST EXTREME VISION OF WHAT THEY MIGHT ACHIEVE WITH THESE TOOLS, A CYBERNETIC GOD, HUMANITY IS PROBABLY NOT THE FIRST OF YOUR VIRTUES. THAT IS NOT THE ACT OF A HUMBLE PERSON. YOU KNOW, YOU MIGHT CLASH WITH RELIGIOUS FIGURES WHO DRAW ON ETHICAL TRADITIONS GOING BACK TO MILLENIA AND THINKING ABOUT THIS FOR A LONG TIME BUT HAVE A DIFFERENT PERSPECTIVE. IT IS STRIKING TO SEE THE POPE STEP IN, NOT IN A DEEPLY THOUGHTFUL WAY. IF YOU READ HIS MESSAGE ON AI, EVEN IF I DON'T AGREE WITH IT, YOU HAVE TO REALLY RESPECT THE LEVEL OF PHILOSOPHY AND RIGOR. CHRISTINA: KEEPING US ALL HOPEFULLY A LITTLE HUMBLE TODAY. DAVID: FEEL LIKE WE WERE IN A NEW HAVEN SEMINAR ROOM. I LIKE THAT. WE SHOULD DO THAT. WE SHOULD GATHER IN PERSON. CHRISTINA: THAT WOULD BE FUN. I THINK WE WILL COME BACK TO THIS. DAVID: SCOTT BESSENT ALSO WEIGHING IN ON THE BOND MARKETS, DOWNPLAYING CONCERNS ABOUT HIGH-YIELD. HOW HIGH WILL THEY GO? COMING UP NEXT ON BLOOMBERG TV, RADIO, BLOOMBERG.COM, AND THE BLOOMBERG BUSINESS APP. ♪ LISA: THANK YOU FOR JOINING US ALIVE ON "BLOOMBERG THIS WEEKEND ." MORE TECH EMPLOYEES ARE RAISING ALARMS ABOUT THE INDUSTRY. IN AN ESSAY FOR THE ATLANTIC, AN OPENAI EMPLOYEE FOCUSED ON AI SAFETY WITH THE COMPANY WARNED THAT TOP ARTIFICIAL INTELLIGENCE FIRMS ARE NOT DOING ENOUGH TO MITIGATE THE TECHNOLOGY'S RISKS. DAVID ROBINSON SAID OPENAI IS FAILING TO ACHIEVE THE LEVEL OF CARE NEEDED AS IT MOVES QUICKLY FROM ONE LAUNCH TO THE NEXT. IN SPORTS, EIGHT TEAMS ARE BATTLING IT OUT IN THE MLB PLAYOFFS. LAST NIGHT, IT WAS GAME ONE OF THE DIVISIONAL ROUND MATCHUPS. LET'S START WITH THE NLDS. IT CERTAINLY DID NOT FEEL LIKE OCTOBER BASEBALL. THE DODGERS AND BRAVES TOOK THE FIELD IN 100 DEGREE TEMPERATURES. IT WAS THE SECOND HOTTEST POSTSEASON GAME AT DODGER STADIUM. THE DODGERS KEPT THEIR COOL, WINNING 5-3. THE MILWAUKEE BREWERS BEAT THE SAN DIEGO PADRES 3-2. IN THE ALDS, THE RAYS TOOK ON THE YANKEES. A NO-HITTER INTO THE EIGHTH INNING UNTIL AUSTIN WELLS HIT A LINE DRIVE DOWN THE LEFT-FIELD LINE. BUT WELLS WAS THROWN OUT AT THIRD TRYING TO STRETCH AN EASY DOUBLE. IN THE END, THE RAYS BEAT THE YANKEES 1-0. ALSO, THE CHICAGO WHITE SOX BEAT THE GUARDIANS. DAVID: I KNOW YOU WERE WATCHING AND WERE UP LATE. LISA: I KNOW. YELLING AT MY TV SCREEN, IT WAS NOT A GOOD NIGHT. CHRISTINA: I KNOW YOU WERE HOME BY YOURSELF. I LOVE THAT IS YOUR CHOICE TO DO. I LOVE YOUR NIGHT WHEN YOU CAN DO ANYTHING, YOU ARE IN FRONT OF THE SCREEN. LISA: YELLING AT THE YANKEES. CHRISTINA: IT IS THE BEST. DAVID: FIRST GAME. LISA: FIRST GAME, YES. WE HAVE ANOTHER ONE TODAY SO IT IS OK. CHRISTINA: SO THIS IS THE SEASON I HAVE TO STOP ATTENDING I LIKE BASEBALL INSTEAD OF BASKETBALL. LISA: YES. CHRISTINA: I AM ON IT. DAVID: THOUGHTS AND PRAYERS FOR OUR AUDIENCE ACROSS ALL BLOOMBERG PLATFORMS. CHRISTINA: MOVING ON, THIS WEEK WE WILL LEARN MORE ABOUT THE DECISION-MAKING BEHIND THE FED DECISION TO RAISE INTEREST RATES FOR THE FIRST TIME IN THREE YEARS. DAVID: WE GET THE MINUTES FROM THE SEPTEMBER BOARD MEETINGS LIKELY TO SHOW CONCERNS ABOUT INFLATION, RAISING QUESTIONS ABOUT WHETHER WE WILL SEE ANOTHER RATE HIKE THIS YEAR. WITH US IS OUR GUEST FROM BLOOMBERG INTELLIGENCE. BEFORE WE GET INTO WHAT WE ARE SEEING IN THE BOND SPACE, LET ME ASK YOU ABOUT THE IMPORTANCE OF THESE MINUTES. WE SAW THE WAY THE MARKETS REACTED TO THE JOBS NUMBERS FROM LAST WEEK, THE WAY THEY WERE PRICED AND THEY ARE NOT BEING AN INCREASE. HOW DO YOU VIEW THE COLOR, THE ANECDOTAL INFORMATION WE WILL GET FROM POLICYMAKERS WEDNESDAY THIS WEEK? >> ALL OF THE LITTLE INCREMENTAL INFORMATION WE GET IS ALWAYS HELPFUL TRYING TO DETERMINE WHAT THE REACTION FUNCTION OF THE FED IS GOING TO BE. WE GOT THE DOTS AT THE LAST MEETING. SO KIND OF IF YOU FOLLOW THEM, YOU WOULD HAVE TO ASSUME THAT THEY ARE PROBABLY NOT GOING TO GO IN OCTOBER ANYWAY. I THINK THE JOBS DATA ON FRIDAY GAVE THEM THE ABILITY NOT TO RUSH INTO THE NEXT HIKE. BUT THEN AGAIN, I THINK THEY WILL HIKE IN DECEMBER AND ONCE PROBABLY IN THE FIRST QUARTER OF NEXT YEAR AS WELL. CHRISTINA: MY NEXT QUESTION WAS WE ARE SEEING THE JOBS NUMBERS REPORT AS WELL, AND JOBS HAVE KIND OF STALLED OUT. HOW DOES THE FED REACT TO THAT? ARE YOU STILL ACCEPTING THE SAME CADENCE OF RATE HIKES GIVEN THE COOL OFF IN THE JOB SECTOR? IRA: WELL, THE JOBS NUMBERS WERE NOT GREAT, BUT EVEN THE WAGES SLOWED A BIT, YOU GOT AN UPTICK IN THE HOURS WORKED. ON AGGREGATE, YOU ARE ON AN OK TREND. THERE IS A LOT OF PEOPLE WITHIN THE FED THAT THINK THE REPLACEMENT RATE FOR WORKERS IS CLOSER TO 50,000 THAN 100,000. BECAUSE OF THAT, A NUMBER WE GOT LAST WEEK WILL NOT DISSUADE THEM FROM HIKING SLOWLY, ESPECIALLY WHEN INFLATION CONTINUES TO BE ABOVE THEIR TARGET. KEVIN WARSH HAS BEEN EXTREMELY, EXTREMELY HAWKISH COMPARED TO WHAT I THINK EVERYONE'S EXPECTATION WAS FOR HIM. WE HAVE A LARGE LANGUAGE MODEL, A NATURAL LANGUAGE PROCESSING MODEL THAT LOOKS AT FED SENTIMENT FOR ALL OF THESE PREPARED REMARKS, INCLUDING WHAT KEVIN WARSH SAYS PRIOR TO THE STATEMENT AND ALSO FOR THE MINUTES. THOSE TWO HAVE BEEN EXTREMELY HAWKISH. AS HAWKISH AS THE FED WAS BACK IN 2022 WHEN THEY WERE RAISING INTEREST RATES AT 50 AND 75 BASIS POINT A CLIP. SO THE IDEA THAT THEY WILL TURN BECAUSE OF ONE NUMBER I THINK IS PROBABLY A LITTLE SHORTSIGHTED. THE FED WILL REMAIN HAWKISH UNTIL YOU WIND UP GETTING THE PCE DEFLATOR BELOW 2.5%. I DON'T THINK THAT THE FED IS UNDER ANY ILLUSION THEY ARE GOING TO HIT 2% AS THEIR TARGET. BUT FROM A COMMUNICATIONS PERSPECTIVE, KEVIN WARSH KEEP SAYING TO PERCENT, 2%, 2%. THEREFORE, UNTIL HE COULD CLOSE, YOU ARE TRENDING DOWN TO IT, THE FED WILL HAVE TO LEAN HAWKISH, IN THE MARKET WILL CONTINUE TO REFLECT THAT. CHRISTINA: LET'S HOPE I NEVER HAVE A JOB SO CONSEQUENTIAL IT WARRANTS ITS OWN LLM PARSING MY WORDS AND ANALYZING WHAT I'M SAYING IN ALL OF MY SPEECHES. DAVID: THAT MIGHT EXIST. I DON'T KNOW. SOMEONE WATCHING AND LISTENING CLOSELY TO WHAT YOU SAY. THERE WAS AN INTERVIEW THE TREASURY SECRETARY DID WITH AXIOS. TALKED ABOUT A NUMBER OF ISSUES. THE OVERARCHING MESSAGE IS HE WANTS PEOPLE TO SLOW DOWN. USING THAT TALK ABOUT AI, HIS ATTITUDE ON INVESTORS AS WELL. PLAY A BIT OF SOUND FROM THAT. WHAT WE HAVE SEEN THE LAST FEW WEEKS, THE SPIKE IN YIELDS WE HAVE SEEN. SECRETARY BESSENT: I WOULD BE CONCERNED IF WE HAD SOME IDIOSYNCRATIC RISE. IT HAS BEEN A GLOBAL RISE. U.S.-BORN PERFORMANCE SINCE THE PRESIDENT CAME IN HAS BEEN THE BEST IN THE WORLD. WE HAVE NOT SEEN PEOPLE SELL TREASURIES TO BUY JAPANESE BONDS. I CANNOT CONTROL THE BOND MARKET. WHAT I CAN DO IS TRY TO GET PEOPLE TO SLOW DOWN AND THINK. DAVID: GET PEOPLE TO SLOW DOWN AND THINK. THERE IS ALSO A NICE EXCHANGE ABOUT THE COMMENT HE SAID, I AM THE HOUSE NOW. NOT REGRETTING SAYING THAT, BUT INDICATING THE HOUSE DOES NOT WIN EVERY HAND. THE HOUSE PLAYS PERCENTAGES. HOWDY RESPOND TO HIS OUTLOOK? WHAT DO YOU SEE AS THE CHIEF FACTORS DRIVING, DESPITE WE HAVE SEEN THAT THE SPIKE WE HAVE SEEN -- THE SPIKE WE HAVE SEEN? IRA: IT IS NOT ONLY THE U.S. IT IS A GLOBAL PHENOMENON. WE HAVE SEEN IT WAS JAPANESE AND U.K. YIELDS. THOSE HAVE BEEN AMONG THE WORST PERFORMERS IN THE G4 COUNTRIES. THE REASON WHY WE ARE HERE, QUITE FRANKLY THE NUMBER ONE REASON ACCORDING TO OUR WORK, IS BECAUSE GROWTH IS SO GOOD. NOMINAL GDP RUNNING AT 5.5%, 6%, 6.5% TO -- DEPENDING ON THE JURISDICTION YOU ARE LOOKING AT, YOU HAVE TO HAVE A HIGHER LONG YIELDS. BASICALLY, IF YOU THINK ABOUT THE BOND MARKET AND HOW THE BOND MARKET PRICES, WHAT IS YOUR LONG-TERM EXPECTED RETURN IF YOU JUST INVEST IN THE ECONOMY? SO U.S. TREASURIES BEING THE "RISK-FREE ASSET" WILL TRADE A LITTLE BIT BELOW THAT. AND THAT YOU HAVE SOMETHING LIKE EQUITIES, WHICH OVER THE LONGER TERM SHOULD BE A LITTLE BIT ABOVE THE SPEED LIMIT OF THE U.S. ECONOMY BECAUSE THOSE ARE COMPANIES THAT ARE DRIVING GROWTH AND THAT ALSO ARE MORE RISKY. YOU EXPECT A SLIGHTLY HIGHER RETURN THAN THE ECONOMY. IF YOU THINK ABOUT IT FROM THE BROAD TOP-DOWN MACROECONOMIC SENSE, IT IS NOT A BIG SURPRISE WE WILL BE AT 5.5% WHEN NOMINAL GDP IS AT 6%, 6.5%, WHICH IS EXACTLY WHERE WE WERE IN THE FIRST QUARTER. CHRISTINA: WE HAVE ABOUT A MINUTE LEFT, BUT I WAS GOING THROUGH SOME ANALYSTS THIS MORNING. YOU WERE TALKING ABOUT CENTRAL BANK POLICY AS A WHOLE. WHEN YOU ZOOM BACK AND LOOK AT IT GLOBALLY, DO YOU THINK WE ARE IN AN ERA OF NEW -- OF LOOSER FISCAL POLICY WHEN IT COMES TO POLICY DECISIONS? IRA: YES, THIS IS THE GIVE AND THAT TAKE. YOU HAVE GOVERNMENTS THAT HAVE BIG DEFICITS, THAT ARE SPENDING A LOT OF MONEY. THE U.S. GOVERNMENT CONTINUING TO HAVE $1.5 TRILLION DEFICITS IS CERTAINLY GOING AGAINST THE IDEA THAT YOU WANT TO TIGHTEN FISCAL POLICY IN ORDER TO GET INFLATION DOWN SO THEREFORE THE MONETARY SECTOR, THE CENTRAL BANKS HAVE TO RAISE INTEREST RATES IN ORDER TO TRY TO STEM RISES UP INFLATION AND BASICALLY SLOW THE ECONOMY SOMEWHAT. NO CENTRAL BANK WANTS TO BE THE CAUSE OF A RECESSION, BUT SOMETIMES IF YOUR FOCUS IS ON GETTING INFLATION DOWN, YOU MIGHT WIND UP CAUSING A RECESSION IN ORDER TO DO THAT. PAUL VOLCKER DID THAT IN THE LATE 1970'S, EARLY 1980'S BECAUSE THEY WANTED TO GET INFLATION DOWN SO THEY HAVE TO PUT THE BRAKES ON THE ECONOMY. CHRISTINA: TOOK A LOT OF FLACK FOR IT TOO. IRA IS OVER CHIEF U.S. INTEREST RATES STRATEGIST BY BLOOMBERG. THANK YOU FOR JOINING US. DAVID: APPRECIATE IT. THE INTERVIEW WITH SCOTT BESSENT IS ILLUMINATING BECAUSE IT WAS LONG AND WIDE RANGING BUT GETTING HIM TO RESPOND TO THAT "I AM THE HOUSE NOW" COMMENT. CHRISTINA: WAS BRILLIANT. I LOVE WHEN YOU GET TIME TO SIT DOWN WITH FOLKS. THERE ARE QUESTIONS WE HAVE TO ASK, BUT NICE TO ASK THINGS LIKE THAT AS WELL. HERE IS A SCARY THOUGHT. WHAT WOULD YOU DO IF YOU LOST YOUR PHONE AND HAD TO NAVIGATE A BIG CITY, ESPECIALLY A TECH BASED CITY? A SMARTPHONE FREE WORLD FOR TWO DAYS. THAT IS COMING UP NEXT ON "BLOOMBERG THIS WEEKEND." DAVID: LIVE-STREAMING NEWS AND INTERVIEWS, SHOWS, DOCUMENTARIES, ANALYSIS, AND MORE IN ONE PLACE. CHECK OUT BLOOMBERG.COM/VIDEOS. ♪ CHRISTINA: WELCOME BACK TO "BLOOMBERG THIS WEEKEND." ALL RIGHT. IN A DAY AND AGE OF RAPIDLY DEVELOPING AI TECHNOLOGY, IT MAY SEEM IMPOSSIBLE TO LIVE WITHOUT YOUR SMARTPHONE. I KNOW ALMOST EVERYTHING I DO THESE DAYS, GETTING TO WORK IN THE MORNING, SCANNING IN, EVERYTHING IS ON YOUR PHONE FROM TRAVEL BANKING TO SHOPPING. DAVID: IN THE LATEST PIECE, WE ASKED WHAT HAPPENS IF YOU SPEND 48 HOURS WITHOUT A SMARTPHONE IN SINGAPORE, THE CITY OF THE FUTURE? SHE JOINS US TO BREAK DOWN HER EXPERIMENT. GREAT TO SPEAK WITH YOU. IT IS A WONDERFUL PIECE. I WONDERED IF I COULD DO THIS AND FOR HOW LONG. SO LET'S START BY YOU ESTABLISHING THE PARAMETERS OF THE EXPERIMENT. WHAT DID YOU SET OUT TO DO IN SINGAPORE OVER 48 HOURS? >> IT WAS REALLY SIMPLE ACTUALLY. THE EXPERIMENT WAS JUST TO GET BY 48 HOURS WITHOUT ANY SMART DEVICE IN MY POCKET. DAVID: WHAT DID YOU HAVE? NOT HAVING A SMART, WHAT DID YOU CARRY AROUND? WHAT DID YOU ALLOW YOURSELF TO DO? CHRISTINA: DID YOU HAVE SOME SORT OF FAILSAFE? >> I HAD A TINY COMPASS. CHRISTINA: [LAUGHTER] >> [LAUGHTER] THE FIRST DAY I HAD MY WORK PHONE, WHICH WAS A SMART PHONE, BUT IT WAS TO CONTACT ONE PERSON I NEEDED TO FIND. OTHERWISE, I WAS NOT TOUCHING IT. THE SECOND DAY, I HAD NO DEVICE AT ALL. DAVID: NOTHING. CHRISTINA: WHAT WERE THE BIGGEST CHALLENGES? FOR ME, IT WOULD DEFINITELY BE LOST OR FINDING THINGS. I ALMOST NEVER CARRY A WALL ANYMORE. I PAY FOR EVERYTHING WITH TAP WHAT WERE THE THINGS YOU REALLY STRUGGLED WITH? >> I ALSO WAS COMPLETELY NEW TO SINGAPORE. CHRISTINA: GREAT. GOOD. GOOD PLAN. >> ON SECOND THOUGHT, I SHOULD HAVE GOTTEN A PAPER MAP. THAT WOULD HAVE BEEN QUITE HELPFUL. I THINK THE BIGGEST CHALLENGE WAS I KNEW THAT I COULD HAVE HAD THE ANSWER REALLY EASILY AND IT WAS NOT AVAILABLE TO ME, SO I HAD TO RELY ON MY FEET AND MY EYES AND MY BRAIN INSTEAD OF JUST FOLLOWING THE MAP OR THE. AS I USUALLY DO -- THE DOT AS I USUALLY DO. DAVID: I WAS IN SINGAPORE FOR THE FIRST TIME A YEAR AGO AND WAS STRUCK BY HOW RADICALLY DIFFERENT IT IS. NEW YORK HAS A LOT OF TECH BUT SINGAPORE WAS ENTIRELY DIFFERENT -- SINGAPORE WAS DIFFERENT ENTIRELY. A FEW PRESSURE POINTS GIVEN HOW SOPHISTICATED AND TECHNOLOGICAL SAVVY SINGAPORE IS, WHEN YOU FELT ALMOST PANIC, WHEN YOU THOUGHT IT WAS CUSTOMARY TO USE A SMART PHONE AND YOU WERE NOT ABLE TO DO IT? >> BEFORE I GOT TO SINGAPORE, I WAS LIKE, I WILL FAIL, I WILL NOT BE ABLE TO GET IN THE COUNTRY. WHEN I WAS WAITING FOR MY FLIGHT FROM TOKYO, THERE WAS A BIG QR CODE AND I REALIZED I HAD NOT SORT OF DONE THE DIGITAL IMMIGRATION PREP. THE ONLY WAY TO GET THROUGH IT WAS -- AT THAT POINT I PANICKED AND THE EXPERIMENT ONE OF ABLE TO TAKE PLACE UNLESS I CHEAT AT THIS MOMENT, SO I HAD TO USE MY BACKUP PHONE TO SCAN THE QR CODE, FILL OUT THE IMMIGRATION FORM, AND I THOUGHT IN MY HEAD THERE WAS LIKE A PAPER SOLUTION THAT WOULD MAGICALLY OCCUR AT THE LAST MOMENT RIGHT BEFORE IMMIGRATION, RIGHT BEFORE CUSTOMS. THERE WAS NO MAGICAL PAPER SOLUTION, BUT THERE WAS -- THEY DO OFFER TABLETS FOR PEOPLE WHO DO NOT HAVE ACCESS OR WHO DO NOT HAVE THEIR OWN DEVICE. THERE WAS OFTEN SOME KIND OF THING THAT WOULD MAGICALLY EMERGE. IN THIS CASE, IT WAS NOT PAPER. CHRISTINA: BUT IT SEEMS LIKE IT WAS POSSIBLE TO LIVE, EVEN IN SINGAPORE, FOR A LITTLE WHILE WITHOUT YOUR PHONE. I KNOW THERE ARE CERTAIN PLACES -- IN THE DOCTOR'S OFFICE, I REFUSE TO MAKE DIGITAL -- I REFUSE TO DO DIGITAL PAPERWORK. I IMAGINE YOUR EXPERIENCE WAS PROBABLY SIMILAR. IT TAKES LONGER. YOU HAVE TO ASK AND YOU MAY GET A FEW EYE ROLES, BUT IN THE END WE WERE ABLE TO MAKE IT WORK? >> YEAH, I DID. THERE WERE A COUPLE OF MINOR FAILURES IN ADDITION TO THE FIRST BIG PANIC, BUT I OFTEN FOUND THAT IF I WAS PATIENT AND HAD SOME FAITH, SOMEBODY WOULD BE NICE TO ME, BUT IT DID NOT HAPPEN EVERY TIME. AT ONE POINT, I WAS AT A STAND AND WANTED TO GET NOODLES AND I WAS LIKE, CAN I ORDER FROM YOU PERSONALLY? SHE WAS LIKE, NO. [LAUGHTER] CHRISTINA: NOT HAVING IT. NOT HAVING IT. DAVID: PART OF THE PIECE IS WHAT YOU CAN GET BY NOT HAVING A SMARTPHONE. THERE IS A MOMENT AT WHICH YOU ARE AT A TRAIN STATION IN LINE FOR SOMETHING AND A LOT OF FOLKS WERE ON THEIR PHONE PASSING TIME. YOU WRITE ABOUT HOW THESE MOMENTS ARE TEDIOUS AND UNPRODUCTIVE, AND WE HAVE LEARNED NOT TO HAVE MOMENTS LIKE THAT. THIS GIVES US A CRUTCH TO NOT HAVE TO LIVE WITH THEM. HOW DO YOU THINK ABOUT THEM NOW HAVING GONE THROUGH THIS EXPERIMENT, THE WAY WE DEAL WITH BOREDOM THAT WE HAVE NOT IN RECENT YEARS? >> YEAH, I THINK BOREDOM IS VERY IMPORTANT. TO GIVE A BIT OF CONTEXT, IT IS NOT JUST THE 48 HOURS I HAVE BEEN DOING THIS. MY PHONE WAS STOLEN IN JUNE, SO I HAVE BEEN LIVING IT IN MY NORMAL DAILY LIFE WITHOUT A SMARTPHONE. I DECIDED NOT TO GET ANOTHER SMARTPHONE FOR THE TIME BEING. I'VE -- I AM BOARD A LOT -- I AM BORED A LOT. I LOOK AT WHAT THEY ARE SCROLLING. IN THAT SENSE, IT IS INTERESTING. IT HAS MADE ME MORE AWARE OF HOW DEPENDENT WE ARE AND IT IS I HAVE TO SAY. CHRISTINA: DO YOU RECOMMEND HAVING DONE PHONES? IT IS HARD AS A JOURNALIST. DAVID: HARD AS A BLOOMBERG EMPLOYEE TO NOT HAVE THE BLOOMBERG ANYWHERE APP. CHRISTINA: NICE PLUG, AND ALSO TRUE. WE TALKED ABOUT -- WE ARE SHORT ON TIME BUT WE TALK ABOUT BEING STRESSED AND THE MENTAL HEALTH ASPECT OF IT. DID YOU FIND YOURSELF WHILE BEING BORED A LITTLE CALMER? >> DEFINITELY. VALUE BEING BORED. I FEEL I CAN PASS A LOT MORE TIME WITHOUT FIDGETING OR WANTING TO SCROLL THROUGH SOMETHING SO I RECOMMEND SHORT EXPERIMENT IF THAT IS WHAT YOU ARE LOOKING FOR. DAVID: TRY TO REPLICATE IT. THANK YOU FOR JOINING US. GREAT PIECE. CHRISTINA: GOOD LUCK WITH YOUR PHONES OR LACK THEREOF. DAVID: WE ARE COMING UP ON AIRPARK A.M. IN NEW YORK CITY. CHRISTINA: THE NEXT HOUR OF "BLOOMBERG THIS WEEKEND" STARTS RIGHT NOW. ♪ CHRISTINA: COMING UP ON "BLOOMBERG THIS WEEKEND," ATTORNEY GENERAL TODD BLANCHE ABOUT FORMER FED CHAIRMAN JEROME POWELL. >> WE ARE NOT REOPENING A CRIMINAL INVESTIGATION INTO HIM. I THINK IT IS CLEAR HE DID NOT. AS FAR AS OVERSIGHT. CHRISTINA: NOW THE PRESIDENT IS WEIGHING IN. DAVID: TREASURY SECRETARY SCOTT BESSENT DOWNPLAYING WORRIES ABOUT RISING YIELDS. >> I CANNOT CONTROL THE BOND MARKET. WHAT I CAN DO IS TRY TO GET PEOPLE TO SLOW DOWN AND THINK. DAVID: WHAT TO KNOW BEFORE MARKETS OPEN ON MONDAY. CHRISTINA: PLUS, A REPRESENTATIVE TO THE U.S. >> I WANT TO MAKE SURE THAT TAIWAN IS NOT ON THE MENU. DAVID: WELCOME BACK TO "BLOOMBERG THIS WEEKEND." IT IS 8:00 IN NEW YORK CITY. CHRISTINA: BRINGING YOU THE LATEST REPORTS LIVE THIS MORNING AND EVERY WEEKEND FROM 7:00 TO 10:00 A.M. WE WILL START THIS HOUR OVERSEAS, TALKING ABOUT TAIWAN, COMING ON THE HEELS OF THE BIG TRIP OF PRESIDENT XI TO THE U.S., MEETING WITH PRESIDENT TRUMP. A WEEK LATER, HOW THAT IS BEING PERCEIVED IN TAIWAN AND THROUGHOUT ASIA AND WHAT IT MEANS FOR SECURITY THERE AND FOR SECURITY IN AMERICA. DAVID: THE NEXT SUMMIT COMING UP IN A FEW WEEKS TIME, WHEN PRESIDENT TRUMP AND XI ARE EXPECTED TO MEET AGAIN, THE THIRD OF POTENTIALLY FOUR MEETINGS OVER THE COURSE OF THIS CALENDAR YEAR. BUT FIRST, THE HEADLINES WITH LISA MATEO. LISA: CORNELL'S PRESIDENT CALLED THE ALLEGED RAPE OF A STUDENT AT AN -- AT A HOUSE IN 2024 DEEPLY DISTURBING. HE SAID THE SCHOOL IS COMMITTED TO FINDING ANSWERS THE COMMUNITY DESERVES. >> I BELIEVE WE AS AN ADMINISTRATION AND WE AS A COMMUNITY MUST DO BETTER. WE MUST DO EVERYTHING WE CAN TO PREVENT WHAT HAPPENED TO JANE DOE AND EVERYONE BEFORE HER AND ANYONE AFTER HER FROM EVER HAPPENING AGAIN. CHRISTINA: HE REAFFIRMED HIS COMMITMENT TO SUPPORTING AN INDEPENDENT REVIEW OF CORNELL'S HANDLING OF THE CASE AND SAID THE SCHOOL'S BOARD OF TRUSTEES WOULD ANNOUNCE DETAILS NEXT WEEK. HE ALSO EXPRESSED SUPPORT FOR GOVERNOR KATHY HOCHUL'S DECISION TO TURN THE INVESTIGATION OVER TO THE STATE ATTORNEY GENERAL AND COMMITTED CORNELL'S SUPPORT ALLEGES THAT HER TO CHANGE NEW YORK'S SEXUAL ASSAULT LAWS. TENNESSEE'S GOOGLERS -- GOVERNOR SAYS THE HEAD OF THE -- STEPPING ASIDE IS IN THE BEST INTEREST OF THE STATE. REVIEW IS BEING CONDUCTED INTO WHAT WENT WRONG. PIKE'S LAWYER SAYS SHE WAS PLACED ON A VENTILATOR AND IS UNCONSCIOUS IN A HOSPITAL. IN UKRAINE, SEVEN PEOPLE INCLUDING A CHILD WERE INJURED IN A RUSSIAN ATTACK, ACCORDING TO THE STATE EMERGENCY SERVICE OF UKRAINE, WHO SAYS GUIDED AERIAL BOMBS WERE USED. MEANWHILE, THE GERMAN CHANCELLOR ARRIVED IN KYIV TODAY IN A SHOW OF SUPPORT AS RUSSIA INTENSIFIES ITS ATTACKS ON UKRAINIAN CITIES. HE AND PRESIDENT ZELENSKYY PAID THEIR RESPECTS TO FALLEN UKRAINIAN SOLDIERS AND VISITED A DAMAGED BUILDING OF THE NATIONAL ACADEMY OF SCIENCES IN UKRAINE. PRESIDENT ZELENSKYY EXPRESSES ANGER AND RUSSIA AND APPRECIATION FOR THE GERMAN CHANCELLOR. >> ABSOLUTELY, WE ARE NEIGHBORS WITH RUSSIANS. WE HAVE POSITIVE THAT WE HAVE UNITY AND STRONG PARTNERS AND WE ARE THANKFUL. LISA: IN BRAZIL, THE ELECTION POLLS HAVE OPENED. THE PRESIDENT AND RIGHT-WING CHALLENGER REMAIN LOCKED IN A TIGHT RACE ACCORDING TO THREE NEW POLLS. IF NO CANDIDATE RECEIVES A MAJORITY, THEY WILL ADVANCE TO A RUNOFF ON OCTOBER 25. DAVID: WE WILL HEAR FROM OUR COLLEGE IN BRAZIL. MORE ON THAT TO COME. THANKS. APPRECIATE IT. PRESIDENT TRUMP AND PRESIDENT XI EXPECTED TO MEET TWO MORE TIMES BEFORE THE END OF THE YEAR, AT THE SUMMIT NEXT MONTH AND THE G20 SUMMIT IN MAR-A-LAGO IN DECEMBER. THAT WOULD MAKE FOUR MEETINGS BETWEEN THE TWO THIS YEAR AS THEY LOOK FOR COMMON GROUND ON TRADE NAI. CHRISTINA: WHILE THE ISSUE OF TRADE STATUS WAS RAISED LAST MONTH, THE U.S. HAS NOT INDICATED ITS POLICY ON TAIWAN HAS CHANGED DESPITE INTERESTING LANGUAGE IN THE READOUT FROM BEIJING. WE SPOKE WITH TAIWAN'S REPRESENTATIVE TO THE UNITED STATES. >> MANIPULATING WORDS AND SEMANTICS, AND THE STATEMENT THAT THEY ISSUED ACTUALLY WHILE THE CONVERSATION WAS STILL ONGOING BETWEEN THE TWO LEADERS, THEY WERE TRYING TO PORTRAY THE FACT THE UNITED STATES HAS ALREADY ACCEPTED THIS POSITION AND THEY WERE DEVIATING AND THEREFORE THEY SHOULD TAKE THE CORRECT STANCE OF GOING BACK TO WHERE THEY WERE. THAT IS NOT THE CASE. THE UNITED STATES HAS BEEN VERY CLEAR ON THE FACT THAT THERE IS NO CHANGE IN U.S. POLICY TOWARDS TAIWAN AND BASED ON THE ACT AND THE SIX DISTURBANCES -- SIX ASSURANCES, THIS IS A UNILATERAL STATEMENT FROM THE PRC THAT THE U.S. HAS NOT ACQUIESCED OR RESPONDED. BUT THEY MADE IT VERY CLEAR BEFORE, DURING, AFTER THAT THERE IS NO CHANGE IN THE U.S. POSITION ON TAIWAN. CHRISTINA: WOULD YOU HAVE LIKED TO HAVE HEARD THE PRESIDENT REFUTE THAT MORE STRONGLY AND OPENLY DURING THE VISIT? AMB. YUI: WELL, I THINK THE POSITION OF THE UNITED STATES IS VERY CLEAR. AND I KNOW THAT THE UNITED STATES AND PRC, THEY WANT TO TRY TO CHANGE THE CONSTRUCTIVE STRATEGIC STABILITY BASED ON RESPECT, FAIRNESS, AND RECIPROCITY, SO THEY HAVE THINGS TO DO. IT IS ALSO WORTH NOTING THE ISSUE OF TAIWAN WAS NOT PRESENTED ON EITHER SIDE OF THE FACT SHEET. CHRISTINA: RIGHT. AMB. YUI: THAT IS ALSO INDICATIVE THAT THERE WAS NO CONSENSUS, NOT EVEN PUT IT IN THE SHEETS THAT BOTH SIDES SAY THEY WERE THE ACHIEVEMENTS DONE DURING MEETINGS. DAVID: PULL BACK A BIT BECAUSE WE HAVE SEEN THIS EFFORT ON CHINA'S PART TO HAVE OTHER COUNTRIES DROP THEIR RECOGNITION OF TAIWAN, AND I AM CURIOUS HOW WORRISOME THAT IS, HOW IMPORTANT OF AN ISSUE THAT IS FOR YOU AS YOU SEE IT, THE FACT THAT THIS SEEMS TO BE A GLOBAL CAMPAIGN CHINA IS WAGING RIGHT NOW? AMB. YUI: YES. UNFORTUNATELY, SINCE 1949 WHEN THE PRC WAS FOUNDED, THEY HAVE BEEN TRYING VERY HARD TO OPPRESS, TO SUPPRESS, AND TO TAKE THE INTERNATIONAL OXYGEN OUT OF TAIWAN. THAT HAS BEEN THE ONGOING -- THAT HAS BEEN ONGOING IN THE UNITED NATIONS. MY COUNTRY, WE WERE THE FOUNDING MEMBERS OF THE UNITED NATIONS BUT HAD TO LEAVE IN 1979 BECAUSE OF THIS ONGOING STRUGGLE. ACTUALLY, WHEN AFRICAN COUNTRIES AND MANY COUNTRIES WHO USED TO BE COLONIZED WERE BECOMING INDEPENDENT, THAT IS WHERE THE SHIFT CHANGES TO THEIR FAVOR AND WE HAD TO LEAVE. IT HAS BEEN AN ONGOING STRUGGLE. ALTHOUGH THE DIPLOMATIC RECOGNITION OF TAIWAN -- WE HAVE 110 OFFICES THROUGHOUT THE WORLD INCLUDING MANY IN THE UNITED STATES AND OUR RELATIONSHIP WITH THE UNITED STATES WITH EUROPE, WITH JAPAN, WITH MANY OTHER COUNTRIES ARE ACTUALLY VERY SOLID, AND OUR PRAGMATIC RELATIONS, TRADE RELATIONS, INTERACTIONS IN SCIENCE AND INVESTMENTS ARE ACTUALLY DOING PRETTY WELL. IN THE UNITED STATES, WE ENDED RELATIONS IN 1979, AS YOU MAY KNOW, BUT NOW WE ARE THE FOURTH LARGEST TRADING PARTNER AND WE ARE IMPORTANT PARTNERS IN TECHNOLOGY AND MANUFACTURING. CHRISTINA: WHEN IT COMES TO YOUR DEFENSE AGREEMENT WITH THE U.S., ESPECIALLY ARMS SALES, YOU ARE PARTLY JUST RECEIVED TWO OF THE F-16S YOU BOUGHT FROM THE U.S. ABOUT SEVEN YEARS AGO. THERE IS ALSO THE STALLED ARMS PACKAGE IN CONGRESS. ARE YOU GETTING WHAT YOU NEED FROM AMERICA TO DEFEND YOURSELF? AMB. YUI: THE UNITED STATES HAS BEEN OUR PRINTABLE PROVIDER, SELLER OF DEFENSIVE WEAPONS. THAT IS PART OF THE TAIWAN RELATIONS ACT, WHERE THE UNITED STATES PROVIDES US, MAKES AVAILABLE SOME WEAPONS FOR ADEQUATE DEFENSE. ALSO COMMENSURATE WITH THE THREAT LEVEL WE ARE RECEIVING. THE THREAT LEVEL THAT TAIWAN IS UNDER RIGHT NOW IS ACTUALLY QUITE HIGH. THEREFORE, WE HAVE BEEN INCREASING OUR DEFENSE EXPENDITURES. WE REACHED 3% OF OUR GDP THIS YEAR. IT WILL BE ALMOST 4% BY NEXT YEAR AND 5% BY 2030. CHRISTINA: ARE YOU GETTING THOSE DELIVERIES FROM THE U.S.? IS WHAT YOU ARE PURCHASING ACTUALLY ARRIVING? AMB. YUI: YES. THE PEOPLE OF TAIWAN WERE EXCITED TO RECEIVE AND SEE THE FIRST TWO F-16'S, AND THOSE WILL BE ARRIVING AS THEY ARE MANUFACTURED, BUT WE ARE GETTING WHAT WE HAVE. OBVIOUSLY, THE SPEED COULD BE FASTER, BUT WE BOTH -- THE UNITED STATES UNDERSTANDS VERY WELL THAT THAT WE ARE UNDER AND I AM SURE WILL BE PROVIDING US WITH THE NECESSARY EQUIPMENT. AGAIN, THERE ARE SOME PENDING SALES TO TAIWAN, AS MOST PEOPLE KNOW, BUT I AGREE WITH SOME COMMENTS. FOR EXAMPLE, ONE OFFICIAL SAID IT IS NOT A MATTER OF IF BUT WHEN THOSE WEAPONS WILL BE ANNOUNCED OR SOLD. DAVID: I AM CURIOUS HOW CLOSELY YOU ARE TRACKING THE CURRENT CAMPAIGN COME OF THE MIDTERM CAMPAIGN IN THE UNITED STATES. I KNOW THE RELATIONSHIP BETWEEN TAIWAN AND MEMBER OF CONGRESS HAS BEEN CRITICAL FOR SUCH A LONG TIME. HOW DO YOU SEE THE IMPORTANCE OF THE OUTCOME OF THESE MIDTERM ELECTIONS IN THE U.S. FOR THE RELATIONSHIP GOING FORWARD? AMB. YUI: I MEAN, WE HAVE TO REALIZE AND MOST PEOPLE MAY NOT THINK TOO MUCH ABOUT IT, BUT THE ELECTIONS IN THE UNITED STATES, BE IT FEDERAL OR LOCAL OR STATE, HAS IMPLICATIONS THROUGHOUT THE WORLD. IT HAPPENS IN THE UNITED STATES HAS DEEP IMPLICATIONS. BUT FOR TAIWAN, WE HAVE SOLID SUPPORT FROM EITHER REPUBLICANS OR DEMOCRATS AND YOU CAN SEE THAT SOLIDLY IN CONGRESS, FOR EXAMPLE DURING PRESIDENT XI'S VISIT TO WASHINGTON. THERE WERE MANY VOICES FROM CONGRESS EXPOSING THEIR CONCERNS FOR TAIWAN'S SAFETY. OBVIOUSLY, WE WATCH THE ELECTIONS IN THE UNITED STATES CLOSELY, BUT WE ALSO UNDERSTAND THAT WHICHEVER PARTY IS IN GOVERNMENT OR WHICHEVER MAJORITY IS IN CONGRESS, THE SUPPORT FOR TAIWAN REMAINS THE SAME, VERY SOLID, VERY STRONG. CHRISTINA: YOU HAVE YOUR OWN PRESIDENTIAL ELECTION COMING UP IN 2028. ARE YOU CONCERNED BEIJING WILL MEDDLE IN THE CANDIDATES OR THE OUTCOMES OF THE RACE? AMB. YUI: WELL, I WILL JUST TAKE IT FROM TAIWAN'S EXPERIENCE. THE PEOPLE'S REPUBLIC OF CHINA BESIDES THE MILITARY THREATS CONSTANTLY ON TAIWAN ON A DAILY BASIS, THEY ALSO DO MANY OTHER WAYS -- THEY ATTEMPTED MANY WAYS TO UPEND TAIWAN'S DEMOCRACY, AND THAT HAPPENS BY WAY OF INFILTRATION, INFLUENCE OPERATIONS, RED ZONE TACTICS, AND THAT INCLUDES TRYING TO INFLUENCE POLITICIANS IN TAIWAN, INFILTRATE OUR NATIONAL SECURITY PERSONNEL, AND ALSO MEDIA, CYBERATTACKS, DISINFORMATION. THIS IS CONSTANTLY HAPPENING IN TAIWAN THAT WE HAVE TO FACE ON A DAILY BASIS SO THAT IS THE EXPERIENCE OF TAIWAN. YOU CAN TAKE THAT AS A REFERENCE. DAVID: TALKING ABOUT THE COMMERCIAL RELATIONSHIP BEING REFERENCED A FEW MINUTES AGO, I BELIEVE YOUR FOREIGN MINISTER IS TRAVELING TO ARIZONA THIS WEEKEND TO VISIT TSMC'S FACILITY THERE. IT MAKES ME WONDER ABOUT THE ROLE OF CHIPS IN THIS RELATIONSHIP BETWEEN TAIWAN AND THE UNITED STATES. WHAT IS THE PURPOSE OF THAT VISIT? WHAT DOES THE FOREIGN MINISTER HOPE TO CONVEY ON THIS VISIT TO THE UNITED STATES? AMB. YUI: ACTUALLY, THAT IS THE STATE OF INCREASING U.S.-TAIWAN BUSINESS PARTNERSHIP THAT IS GROWING DAY BY DAY, AND IT IS NOT ONLY JUST AFTER PRESIDENT TRUMP'S LIBERATION DAY ANNOUNCEMENT IN APRIL OF LAST YEAR. ACTUALLY, TAIWANESE COMPANIES HAVE BEEN LANDING IN THE UNITED STATES SINCE YEARS AGO. I SAY THIS VERY FREQUENTLY. 15 YEARS AGO, 85% OF OUR INVESTMENT WAS GOING TO CHINA. THAT IS WHERE OUR FACTORIES WERE. TWO YEARS AGO, IT CAME DOWN TO 7%. NOW ONLY 1% IS GOING TO CHINA. WHERE IS THAT MONEY COMING TO? TO THE UNITED STATES. THERE IS A GROWING INTEREST IN TAIWANESE COMPANIES TO INVEST IN THE UNITED STATES. ACTUALLY, IT IS A COMMERCIAL DELEGATION OF TAIWANESE COMPANIES TRYING TO LOOK FOR OPPORTUNITIES TO INVEST. THAT IS THE DIFFERENCE BETWEEN TAIWAN AND OTHER COUNTRIES. WE NOT ONLY TALK THE TALK. WE WALK THE WALK. WE ARE YOUR FOURTH LARGEST TRADING PARTNER. WE ARE INVESTING HEAVILY IN THE UNITED STATES. NOT ONLY IS TSMC'S PHOENIX PROJECT $256 BILLION, QUITE A REMARKABLE ACHIEVEMENT, BUT THIS YEAR, TAIWANESE COMPANIES HAVE PLEDGED TO INVEST IN THE UNITED STATES SOMEWHERE AROUND $50 BILLION. A PLEDGE THAT WAS MADE. THAT COMES WITH THE AGREEMENT OF RECIPROCAL TRADE WE SIGNED WITH THE UNITED STATES IN FEBRUARY THAT WE PLEDGED TO INVEST 250 BILLION DOLLARS BY TAIWANESE COMPANIES IN THE UNITED STATES, AND ALSO THE GOVERNMENT MAKING AVAILABLE $250 BILLION WORTH OF CREDIT GUARANTEES. THAT IS ALREADY TAKING PLACE. CHRISTINA: QUICKLY BEFORE WE LET YOU GO, I WANT TO ASK, TRUMP AND XI HAVE ANNOUNCED THEY WILL TRY TO MEET TWO MORE TIMES THIS YEAR, MEANING NOVEMBER, DECEMBER. IS THERE SOMETHING YOU ARE LOOKING FOR, SOMETHING YOU WOULD LIKE TO SEE COMING OUT OF THE MEETINGS FROM EITHER THE U.S. OR CHINA? AMB. YUI: WELL, AGAIN, THE FACT THAT THESE TWO, THE U.S. AND THE PEOPLE'S REPUBLIC OF CHINA, THEY ARE TRYING TO ACHIEVE THIS CONSTRUCTIVE, STRATEGIC STABILITY, IT IS A GOOD THING FOR THE TWO SIDES TO BETTER KNOW EACH OTHER AND REDUCE CAUSES OF FRICTION. IT IS IMPORTANT, BUT WANT TO MAKE SURE TAIWAN IS NOT ON THE MENU. I THINK THE UNITED STATES MADE IT VERY CLEAR THIS TIME AS YOU MENTIONED AT THE BEGINNING. CHINA WANTED TO TAKE THE ISSUE BUT THERE WAS NO RESPONSE FROM THE U.S. SIDE, AND THEREFORE, TAIWAN WAS ON NEITHER SIDE OF THE FACT SHEET FROM BOTH SIDES. OBVIOUSLY, WE ARE WATCHING THE MEETINGS THAT MAY HAPPEN IN NOVEMBER AND DECEMBER AND WHETHER TAIWAN IS INVOLVED, BUT QUITE CERTAIN AND QUITE REASSURED BY THE UNITED STATES THAT THERE WILL BE NO CHANGE IN TAIWAN'S POSITION BY THE UNITED STATES EVEN WITH THOSE MEETINGS HAPPENING. CHRISTINA: THANK YOU FOR JOINING US. APPRECIATE YOUR TIME. DAVID: SOME REACTION NOW. WE WILL BRING IN AN ANALYST. GOOD TO HAVE YOU WITH US ON THIS SUNDAY. A LOT TO PICK APART BUT LET ME ASK YOU, WHAT THE RELATIONSHIP IS IN CONGRESS, AND AS WE LOOK AT THE DELAY OF THE WEAPONS PACKAGE, IT LOOKS LIKE PRESSURE IS NOT THERE THE WAY IT WAS BEFORE. HOW DO YOU THINK ABOUT THAT RELATIONSHIP BETWEEN TAIWAN AND CONGRESS IN THIS DAY AND AGE? >> CONGRESS TRADITIONALLY HAS PLAYED A STRONG ROLE IN THE U.S.-TAIWAN RELATIONSHIP. AFTER THE EXECUTIVE BRANCH CUT OFF OFFICIAL TIES WITH TAIWAN, THE ACT HAS BECOME THE FOUNDATION OF THE RELATIONSHIP TODAY. I THINK IT HAS GONE THROUGH SOME EVOLUTIONS AND IN THE CURRENT CONGRESS, THERE IS A REPUBLICAN MAJORITY UNWILLINGNESS TO LOOK LIKE THERE IS ANY DISTANCE BETWEEN THEM AND THE WHITE HOUSE INCLUDING AS IT RELATES TO TAIWAN. THAT IS WHY WE ARE NOT SEEING A LOT OF PUBLIC PRESSURE OVER DELAYED ARMS SALES. I THINK THE OTHER CHALLENGE THAT DOES NOT JUST AFFECT CONGRESS BUT WILL AFFECT POLITICAL OPPOSITES ACROSS THE COUNTRY IS AMERICANS ARE INCREASINGLY CONCERNED ABOUT FOREIGN COMMITMENT, INCLUDING AS IT RELATES TO TAIWAN BUT ALSO ELSEWHERE IN THE WORLD AND WE DON'T HEAR A LOT ABOUT WHY TAIWAN MATTERS SO IT IS IMPORTANT FOR THEM TO UNDERSTAND WHY THE U.S. HAS THIS GRANTED AMBIGUOUS DEFENSE COMMITMENT TO A PLACE SO FAR AWAY FROM THEM. CHRISTINA: TALK TO US ABOUT THE DUELING READOUTS FROM THE XI VISIT AND THE STATEMENT OUT OF BEIJING FOR CHINA TO PUSH THE ISSUE MORE IN THEIR DIRECTION AND IT WAS NOT IN THE U.S. RETAIL, WHICH IS RARE. I HAVE COVERED A LOT OF THE U.S.-CHINA SUMMITS. IT IS USUALLY EITHER AT THE TOP OR BOTTOM. WE REITERATED OUR STANCE ON TAIWAN. THAT WAS NOT THERE. IS THAT SIGNIFICANT? ARE THEY GIVING UP GROUND? JENNIFER: YES. IT IS ABOUT THE ADMINISTRATION BUT IN THE PAST, THEY WERE JOINT STATEMENTS. IF YOU LOOK AT THE STATEMENTS THAT CAME OUT OF PRESIDENT XI JINPING'S LAST VISIT, IT WAS A JOINT STATEMENT, AND THE UTILITY OF THAT IS BOTH SIDES COMMITTED TO THE LANGUAGE AND IN THE FUTURE THEY CAN HOLD THEMSELVES A COUPLE TO IT. THERE HAS BEEN A PATH TO ISSUING SEPARATE STATEMENTS AND IN THIS CASE, THEY WERE WILDLY DIFFERENT. THE TRUMP ADMINISTRATION STATEMENT READ LIKE A LIST OF TRANSACTIONS OR VERY SPECIFIC OUTCOMES FROM THE MEETING WHERE AS THE CHINESE STATEMENT WAS MORE I WOULD TAKE ELOQUENT IN TERMS OF JUST DISCUSSING ISSUES THAT WERE DISCUSSED BUT NOT SPECIFIC ON THE DELIVERABLES. THE CHINESE STATEMENT MENTIONED THE ISSUE OF TAIWAN, PARTICULARLY THE U.S. POSITION ON TAIWAN INDEPENDENCE AS CHINA CALLS IT. THE CHINESE STATEMENT LAYS OUT IT HOPES THE UNITED STATES WOULD UPHOLD THE CORRECT POSITION OF OPPOSING TAIWAN INDEPENDENCE, A SHIFT FROM HOW THE U.S. USUALLY TALKED ABOUT THIS, WHICH IS DO NOT SUPPORT. THAT MIGHT SEEM LIKE A MINOR SEMANTIC DIFFERENCE BUT IT IS A MEANINGFUL ONE, AND THE FACT THAT WE HAVE NOT HEARD THE U.S. IN TERMS OF WHITE HOUSE STATEMENTS OR OTHER WHITE HOUSE OFFICIALS COMING OUT AND CLARIFYING THE U.S. POSITION ON THIS, I THINK IT IS MEANINGFUL. FROM BEIJING'S POSITION, THEY ARE ABLE TO SEIZE THAT RHETORICAL GROUND, REGARDLESS OF WHAT HAPPENED. DAVID: I WANT TO PULL AN AUDIBLE HERE. I SAW THIS PIECE IN THE JOURNAL ABOUT THE BRAKES THAT -- CHRISTINA: ME TOO, YEAH. DAVID: BLOOMBERG HAS NOT CONFIRMED THIS BUT IT RAISES THE HEALTH OF PRESIDENT XI, WHAT THE WHITE HOUSE LOOKS LIKE, AND WHAT WE KNOW ABOUT PLANS FOR SUCCESSION IN CHINA. IT IS NOT SOMETHING THAT A LOT OF TIME IS SPENT TALKED ABOUT IN THE U.S. JENNIFER: I WILL FLAG THAT THERE ARE PERENNIAL CONVERSATIONS HAPPENING ABOUT PRESIDENT XI JINPING'S HEALTH. HE HAS BEEN OUT OF MEDIA APPEARANCES FOR A PERIOD OF TIME, SWIRLING RUMORS OF WHAT IS HAPPENING TO HIM. I WILL SAY HE IS A MAN OF A CERTAIN AGE AND HAS BEEN TRAVELING A HUGE AMOUNT IN THE LAST MONTH, MORE THAN HE NORMALLY DOES. IT IS UNDERSTANDABLE AND IS OFTEN PART OF THE SUMMITS TO BUILD IN TIMES FOR BREAKS IN BETWEEN THESE MEETINGS. THAT BEING SAID COME IN TERMS OF SUCCESSION PLANS, I DON'T THINK ANYONE REALLY KNOWS. PART OF THAT IS BY DESIGN. RESIDENT XI JINPING DOES NOT WANT TO IDENTIFY A SUCCESSOR BECAUSE THE MOMENT YOU DO YOU START TO LOSE RELEVANCE AND NOW SOMEONE CAN BE A THREAT TO YOU, JUST AS PRESIDENT XI HAS IN MANY WAYS GONE AFTER SOME OF HIS PREDECESSORS. IN SOME WAYS, THE SYSTEM IS FAR MORE ROBUST. YOU HAVE A PERSON AT THE TOPIC AND DECISIONS, BUT IN SOME WAYS IT IS FAR MORE VULNERABLE BECAUSE IT IS NOT CLEAR IF SOMETHING UNEXPECTED WERE TO HAPPEN WHAT THE PLAN WOULD BE. CHRISTINA: IT IS INTERESTING TO ME BECAUSE WHEN WE TALK ABOUT THE STRATEGIC ADVANTAGES OF HAVING AN AUTOCRACY LIKE CHINA COME UP WHEN YOU HAVE 20 OR PLANNING AND A CONSISTENT GOVERNMENT AND YOU KNOW WHO YOUR LEADER WILL BE UNTIL YOU DON'T BECAUSE WHEN YOU HAVE THE STRONGMAN GOVERNMENTS, THE REASON THEY ARE ABLE TO MAINTAIN THAT POSITION, SEVERAL PURGES OF MINISTERS IN THE CHINESE APPARATUS. I REMEMBER THE FOREIGN MINISTER WE USED TO SEE FREQUENTLY WAS GONE ONE DAY AND REPLACED WITH SOMEONE ELSE. WHAT IS THE LIABILITY THERE? IS IT NOT A LIABILITY UNTIL IF AND WHEN IT HAPPENS AND THEN IT IS A SCRAMBLE? JENNIFER: IT IS A LIABILITY BECAUSE IT CREATES QUESTIONS ABOUT POLICY. WHEN SO MUCH GETS PERSONALIZED AND IS DEPENDENT ON THE LEADER AT THE TOP, NOT JUST IN TERMS OF THE POLICIES BUT HOW THEY ARE IMPLEMENTING, XI JINPING HAS CHANGED THE GAME IN CHINA. HE HAS BEEN ABLE TO EXTEND CONTROL DOWN TO THE LOCAL LEVEL, WHICH WAS ALWAYS A PERENNIAL CHALLENGE IN A COUNTRY AS BIG AS CHINA. THE SECOND PIECE OF IT IS WITHIN THE SYSTEM, DO YOU HAVE PEOPLE WHO WILL BE IN POSITIONS WITH THE EXPERIENCE THEY NEED TO TAKE OVER AND WILL THERE BE CLARITY AMONG THEM ABOUT WHO IS MEETING? OR WILL YOU HAVE A DEATH OF STALIN BRAWL ONCE THE MAIN LEADER PASSES, ESPECIALLY IF IT IS UNEXPECTED, AND INFIGHTING AS PEOPLE TRY TO JOCKEY FOR THE TOP POSITION? CHRISTINA: JENNIFER IS ALREADY A ECONOMIC CHIEF ANALYST HERE AT BLOOMBERG AND ALWAYS BRILLIANT. THANK YOU FOR JOINING US. DAVID: LET'S GET A CHECK OF THE HEADLINES NOW WITH LISA MATEO. LISA: AS EXPECTED, MAJOR OPEC-PLUS NATIONS HAVE AGREED TO KEEP OIL PRODUCTION QUOTAS UNCHANGED NEXT MONTH. IN A STATEMENT FOLLOWING THE MONTHLY VIDEO CONFERENCE TODAY, A SUBGROUP OF SEVEN COUNTRIES LED BY SAUDI ARABIA AND RUSSIA SAID THEY WILL KEEP TARGETS STEADY IN NOVEMBER. THE PLANS COME AS OIL FUTURES CREEP BACK UP TO THE $100 A BARREL MARK AND DIESEL HITS RECORD AT THE PUMP DURING THE ONGOING CONFLICT IN THE MIDDLE EAST. IN MADRID, TENS OF THOUSANDS OF PROTESTERS TOOK TO THE STREETS TO DEMAND HELP FOR RENTERS. THEY CARRIED SIGNS CALLING FOR A GENERAL STRIKE ON AFFORDABLE HOUSING. IT COMES AFTER LAWMAKERS REJECTED EMERGENCY MEASURES TO EASE SPAIN'S HOUSING AFFORDABLE TO CRISIS. A NEW ARTIFICIAL INTELLIGENCE TASK FORCE WILL RELEASE A REPORT ON THE RISK POSED BY THE TECHNOLOGY AND WHAT RESPONSIBILITY THE U.S. GOVERNMENT SHOULD HAVE. THE WALL STREET JOURNAL SAYS THE GROUP WILL BE LED BY THE DIRECTOR OF NATIONAL INTELLIGENCE, CLAYTON, MAKING HIM THE TRUMP ADMINISTRATION'S NEW AI CZAR. THE FORCE WILL HAVE 120 DAYS TO PREPARE THE REPORT. MEANWHILE, MORE TECH EMPLOYEES ARE RAISING ALARMS ABOUT THE INDUSTRY. IN AN ESSAY FOR THE ATLANTIC, ONE OPENAI EMPLOYEE FOCUSED ON AI SAFETY WITH THE COMPANY WARNED THAT TOP ARTIFICIAL INTELLIGENCE FIRMS ARE NOT DOING ENOUGH TO MITIGATE THE TECHNOLOGY'S RISKS. DAVID ROBINSON SAID OPENAI IS FAILING TO ACHIEVE THE LEVEL OF CARE NEEDED AS IT QUICKLY MOVES FROM ONE LAUNCH TO THE NEXT. DAVID: THANK YOU VERY MUCH. APPRECIATE IT. CHRISTINA: INVESTORS WILL LOOK TO SEE IF THE TECH RALLY CAN CONTINUE AS WE START A NEW WEEK. THE NASDAQ 100 HIT A RECORD ON FRIDAY. NVIDIA ROSE BRIEFLY TO AN ALL-TIME HIGH, RAISING ITS MARKET CAP TO $5.64 TRILLION. DAVID: JOINING US NOW IS OUR GUEST FROM SCHWAB. GREAT TO HAVE YOU WITH US. WE CAN PARAPHRASE TOM. LET'S START WITH THE TECH SECTOR. SAAS APOCALYPSE SEEMS LIKE SO LONG AGO. >> IT DOES. DAVID: WHEN YOU LOOK AT THE TECH SECTOR, WHAT IS ANIMATING IT RIGHT NOW? THE PRESIDENT TALKING ABOUT A SUPER INTELLIGENCE TASK FORCE. ALL OF THAT ANXIETY IS PALPABLE, AND YET -- >> IT IS INTERESTING. TECH SAT OUT A LOT OF THE RECOVERY AND RALLY SO YOU HAVE THE REVERSE EFFECT HAPPENING NOW WHERE IT IS PRETTY MUCH THE ONLY THEME. NOT THE ONLY SECTOR BUT YOU THROW IN EVERYTHING RELATED TO AI, THAT HAS BEEN HOLDING UP THE MARKET BECAUSE UNDER THE SURFACE OF THIS MARKET OVER THE PAST COUPLE MONTHS, THINGS HAVE LOOKED PRETTY WEAK. THE AVERAGE MAXIMUM DRAWDOWN FOR AN S&P 500 MEMBER SINCE THE BEGINNING OF AUGUST IS 14%. THE CAP POINT OF S&P 500 IS OFF BY 1% SO YOU HAVE THIS RESURGENCE IN TECH AFTER GOING THROUGH THIS LONG CONSOLIDATION AND CHARTING PHASE WHERE INVESTORS WERE GETTING SPOOKED A LITTLE BIT BY WHETHER IT WAS VALUATION CONCERNS OR ALL OF THE SOCIAL PUSHBACK AGAINST AI. THAT IS STARTING TO FADE A LITTLE BIT AND NOW BREATHING MORE LIFE INTO THE SECTOR. CHRISTINA: WHEN IT COMES TO INFLATION, YOU WRITE THAT THERE IS NO BAD WEATHER, JUST BAD CLOTHING, CHANNELING YOUR MIDWESTERN SELF OR THIS VERY EUROPEAN THING. WHAT DO YOU MEAN BY THAT? DO WE NEED TO COAT UP AND GET OVER IT? KEVIN: SPECIFICALLY CHANNELING AUSTAN GOOLSBEE WHEN HE TALKS ABOUT INFLATION AND MONETARY POLICY. I THINK THIS IS THE FRAMEWORK WE NEED TO GET USED TO AND USE FOR INFLATION IN THIS ENVIRONMENT BECAUSE WITH SO MUCH OF THE SUPPLY SHOCKS DOMINATING THE HEADLINES, THINGS THAT CENTRAL BANKS CANNOT CONTROL ESPECIALLY RELATED TO OIL AND THE END PRODUCTS RELATED TO FUEL, THERE IS VERY LITTLE A CENTRAL BANK CAN DO AND RATE INCREASES CAN DO TO COMBAT THAT. I THINK AT SOME POINT LOOKING AT WHY THE FED TURNED HAWKISH AND LOOKING AT THE INFLATION BACKUP ITSELF, THE ONLY TOOL THEY HAVE RESPONDING TO THE PRICE STABILITY MANDATE IS INTEREST RATES. THE IDEA YOU HAVE TO GO THROUGH THE CYCLE, WHICH MAY NOT BE AS AGGRESSIVE AS WE LEARNED FROM KEY OFFICIALS THIS WEEK, ESPECIALLY FROM THE VICE CHAIR AND JOHN WILLIAMS. IT IS SORT OF A NEW FRAMEWORK FOR THIS ENVIRONMENT TO SEE HOW THINGS HAVE CHANGED WHERE THEY ARE NOT NECESSARILY RESPONDING TO DEMAND DRIVEN INFLATION. DAVID: FED SPEAK HAPPENING. THERE IS A PIECE ON BLOOMBERG TALKING ABOUT THE ROLE JOHN WILLIAMS? THERE IS A LACK OF FORWARD-LOOKING INFORMATION OR ARE THESE GUYS FILLING IN THE GAP? KEVIN: YES, I THINK THEY ARE FILLING IN SOME OF THE GAP BUT AFTER COURSE CORRECTING FOR CHAIR WARSH HIMSELF FROM THE JULY CONFERENCE, THEY HAVE GOTTEN PSEUDO-FORWARD GUIDANCE FROM HIM IN TERMS OF WHAT HE LOOKS AT. WE LOOK AT THE BREADTH OF CPE COMPONENTS AND THE RISE AT A PARTICULAR PACE. MENTIONED SOME OF THE COMMODITY PRESSURES HE IS PAYING ATTENTION TO, SO WE HAVE A GOOD SENSE NOW OF HOW HE THINK ABOUT IT. EVEN IF WE DID NOT, WE WOULD HAVE A GOOD SENSE OF HOW THE MAJORITY OF THE COMMITTEE IS LOOKING AT IT SO YOU ARE STACKING UP A COUPLE OF KEY VOICES ESPECIALLY THE CHAIR AND VICE CHAIR AND NEW YORK FED PRESIDENT. NOW YOU ARE GETTING A BETTER SENSE OF HOW THEY ARE THINKING ABOUT I THINK THE PACE OF THIS CYCLE, WHICH I THINK IS THE BEST CASE SCENARIO RIGHT NOW IF THEY ARE GOING TO GO EVERY OTHER MEETING. I WILL BE THE BEST CASE SCENARIO FOR THE MARKET BECAUSE IT IS NOT THIS CYCLE WHERE THEY ARE TRYING TO GET GROWTH TO SLOW SIGNIFICANTLY OR TRYING TO HIT THE LABOR MARKET. THAT DOES NOT NECESSARILY SEEM THE CASE. DAVID: YOU LIKE THE CADENCE? KEVIN: I THINK SO. ESPECIALLY IN THIS ENVIRONMENT WHERE INFLATION IS ELEVATED BECAUSE OF THE SUPPLY CONSTRAINTS. I THINK THEY WANT TO MAKE SURE THEY ARE APPROACHING THIS THE RIGHT WAY AND NOT TRYING TO TARGET DEMAND TOO MUCH BECAUSE IT IS AN INDIRECT WAY OF DOING SO. I DON'T THINK THE JOBS REPORT WAS AS BAD AS THE HEADLINES SUGGESTED, BUT I THINK THERE IS STILL THIS DESIRE ON THE PART OF THE FED RIGHTLY SO TO NOT TRY TO STUNT THE RECOVERY BECAUSE IT HAS BEEN A CHOPPY AND UNEVEN RECOVERY OVER THE LAST YEAR. CHRISTINA: I'M WORKING ON IT. WITH THE JOBS REPORT. YOU WROTE THE ECONOMY AND INFLATION CANNOT CRACK UNTIL THE GLOBAL MARKET CRACK'S. TIMING ON THAT WHAT YOU LOOKING FOR? KEVIN: AS WE'VE LEARNED IN THE PAST WEEK WITH THE SPENDING DATA WE GOT FOR AUGUST IT WAS A SIGNIFICANT BEAT RELATIVE TO EXPECTATIONS. 6% MONTH OVER MONTH STRONG AS WE'VE SEEN A COUPLE OF YEARS. IT'S BACK TO THE IDEA AND THE SIMPLE WAY OF LOOKING AT THE LABOR MARKET OF WE WILL FIGURE OUT TO ADJUST THEIR SPENDING BUT BROADLY. CHRISTINA: WAGES AREN'T KEEPING UP SO WILL THEY SPEND MONEY? KEVIN: I'M NOT SURE HOW MANY PEOPLE ARE ACTUALLY INFLATION ADJUSTING SPECIFICALLY OFF THESE. IT'S A NOMINAL NUMBER. PEOPLE THINK IN TERMS OF THIS WHAT I HAVE TO SPEND ON NECESSITIES FOR DISCRETIONARY. BILL ADJUST IT I THINK OF SOME OF THE STAPLES UP IN PRICE. DAVID: AND PAYING MORE FOR GROCERIES. KEVIN: THE DRAWDOWN IN THE SAVINGS AND HOLDING UP SO WELL OVER THE PAST SEVERAL YEARS. I THINK BOTH OF THOSE FORCES HAVE BEEN STRONG ENOUGH TO KEEP THAT CONSUMER ENGINE GROWING. WE'VE GONE THROUGH A RECORD STRETCH OF THIS SPLIT BETWEEN INFLATION-ADJUSTED SPENDING AND INFLATION ADJUSTED INCOME GROWTH. A LOT OF IT'S BEEN EXPLAINED BY THE DRAWDOWN WE'VE SEEN IN SAVINGS PARTICULARLY DOWN THE LOWER END. DAVID: BACK TO COMPANIES AND HOW ARE THEY HELPING THE CONSUMER NAVIGATE I THINK OF THE BIG-BOX RETAILERS WHO HELP THE PUBLIC TO ABSORB THE IMPACT OF TARIFFS FOR INSTANCE. THEIR GOAL IS TO GET PEOPLE IN THE STORES WE ARE LOOKING TO THE HOLIDAY SEASON. LOOKING AT RETAIL WHAT YOU SEE WHEN YOU LOOK AT THAT SECTOR? KEVIN: YOU HAVE SOME BIG BOXES THAT ARE TRYING TO ASSIST BUT AT THE SAME TIME WE'VE HAD A FLURRY OF PRICE HIKE ANNOUNCEMENTS RECENTLY. I THINK I WILL BE AN INTERESTING THING TO LOOK AT FROM THE INFLATION SIDE PARTICULARLY FOR SEPTEMBER IT HAS TO BE SUCH A SERIOUS INCREASE IN DIESEL FUEL PRICES OF 13% JUMP EXCLUDING SOME OF THE BIGGER SWINGS IT IS PRETTY EXTREME RELATIVE TO HISTORY. HOW THAT FILTERS THROUGH DOWN TO END PRODUCTS WILL BE CRUCIAL BECAUSE NOW YOU ARE GETTING INTO DESHA STARTING TO GET CLOSE TO THE HOLIDAY SEASON. CHRISTINA: I'M ALREADY GETTING TEXTS ABOUT WHICH HOLIDAY IN COMING HOME FOUR. DAVID: ALL OF THEM. CHRISTINA: IF YOU'RE A BIG RETAILER YOU'VE PLACED THOSE ORDERS SO THE DEEPER HEDGING ON CONSUMER APPETITE FOR THE END OF THIS YEAR WERE THEY PLANNING ON A BIGGEST SPEND OR WERE THEY PLANNING ON PEOPLE SPENDING LESS. WE WILL HAVE TO SEE EVERYBODY IS. KEVIN: I THINK TO THE POINT WE WERE JUST TALKING ABOUT AROUND SPENDING AND PEOPLE HAVE JOBS I THINK ONE OF THE LARGE CAP CORPORATE AMERICA HAS NOT SUCCUMBED TO AND REALLY HAS NOT PARTICIPATED IN IS A LARGE LAYOFF CYCLE AT THE AGGREGATE LEVEL. THEY ARE KEEPING THIS LABOR MARKET IN SECTORS REALLY WITH THE FRIDAY JOBS REPORT STILL THE ONLY MAJOR IMPACT IN SECTORS RIGHT NOW HAVE BEEN ESPECIALLY IF YOU LOOK AT AI SPECIFIC HAVE BEEN THE INFORMATION INDUSTRY WHICH IS ESSENTIALLY TECH AND IN SUMMONSES FINANCIAL SERVICES. EVERYTHING ELSE HAS BROADLY BEEN IN THIS RECOVERY MODE EVEN IF YOU WENT THROUGH A SLOWDOWN IN HIRING LAST YEAR WE HAVEN'T GONE THROUGH A SIGNIFICANT LAYOFF CYCLE EVIDENCED BY INITIAL JOBLESS CLAIMS REMAINING SO LOW. THE PEOPLE WHO ARE HAVING A HARDER TIME FINDING A JOB THAT IS OVER TO THE LOWEST SINCE 2023. THERE IS THAT ENGINE THERE IN TERMS OF ACTIVITY AND ESPECIALLY MOVING UP THE CAP SPECTRUM THEY ARE THE ONES I'VE BEEN LARGELY KEEPING THAT IN PLACE BY HOLDING ON TO THEIR LABOR EVEN IF THEY HAVEN'T GONE THROUGH A MASSIVE HIRING SPREE SPRING -- SPREES. DAVID: EARNINGS HAVE COME IN BETTER THAN EXPECTED, A HUGE PART OF THE PICTURE HERE. LOOKING CYCLICALS OR QUARTERLY WHAT YOU THINK HAS BEEN ONE OF THE FOUR QUARTERS. KEVIN: SOMEONE SAID AT SOME POINT IT'S CAP X SEASON. THAT'S THE NUMBER EVERYONE FOCUSES ON. I THINK FROM AN EXPECTATION STANDPOINT WITH A LOT OF THESE MEGA CAPS AND HOW MUCH THAT NUMBER HAS BECOME CRUCIAL TO THE CIRCULAR NATURE OF FINANCING AND EARNING CYCLE IF YOU DO GET ONE MISS THEIR AND BUDGETS GET PARED BACK I THINK THAT'S WHERE YOU SEE SOME DISRUPTION IN THE EARNINGS PICTURE WE STARTED THIS YEAR AT 15% FOR THE S&P. THERE ARE NOW UP TO 35%. DAVID: GREAT TO SEE YOU. CHRISTINA: ONE OF THESE WEEKENDS IT'S CAN HAPPEN. DAVID: IT IS ELECTION DAY SOUTH OF THE EQUATOR. WHAT'S AT STAKE IN BRAZIL'S PRESIDENTIAL RACE. WE CATCH UP WITH OUR COLLEAGUES IN SAO PAULO COMING UP ON BLOOMBERG THIS WEEKEND. BLOOMBERG RADIO, A BLOOMBERG.COM IN THE BLOOMBERG BUSINESS APP. LISA: THANKS FOR JOINING US ALIVE LET'S UPDATE YOU ON THE TOP STORIES. PRESIDENT TRUMP MADE IT OFFICIAL AND HIS SOCIAL MEDIA POST HE ANNOUNCED THE FORMATION OF THE SUPER INTELLIGENCE FORCE. ENSURING AMERICA CONTINUES TO LEAD THE WORLD IN THE ARTIFICIAL INTELLIGENCE AND "WILL PROTECT THE INTERESTS AND IMPROVE THE LIVES OF ALL AMERICANS." THE PRESIDENT SAID IT WILL BE LED BY JAY CLAYTON AMONG OTHERS. IN SPORTS THE PGA TOUR CONTINUES IN UTAH TOPPING THE LEADERBOARD ON THE FINAL DAY IS AUSTEN'S MOTHER MEN AT 23 UNDERPAR FOLLOWED BY DOUG HIM 22 UNDERPAR. TRACE CROWE AND BEN JAMES ARE TIED. LET'S GO TO EIGHT TEAMS BATTLING OUT IN THE MLB PLAYOFFS. GAME ONE OF THE DIVISION ROUND MATCH UPS. LET'S START WITH THE NLD ASPIRATED OCTOBER BASEBALL LOS ANGELES DODGERS AND ATLANTA BRAVES TOOK THE FIELD IN 100 DIFFERENT TEMPERATURES. THE SECOND HOTTEST POSTSEASON GAME IN DODGER STADIUM WITH THE DODGERS KEEPING IT COOL. ALSO THE MILWAUKEE BREWERS THEY BEAT THE SAN DIEGO PADRES 3-2. A PITCHING DUEL IN TAMPA BAY. THE RAYS TOOK ON THE NEW YORK YANKEES. RASMUSSEN CARRIED A NO-HITTER INTO THE EIGHT INNINGS TILL A LINE DRIVE DOWN LEFT FIELD. WELLS WAS THROWN OUT AT THIRD TRYING TO STRETCH AN EASY DOUBLE. THE RAYS BEAT THE YANKEES 1-0. THE WHITE SOX BEAT THE CLEVELAND GUARDIANS. DAVID: ARE PRONUNCIATIONS OF THE YANKEES PLAYERS. CHRISTINA: FUNNY HOW THAT WORKED. PEOPLE HAVE DIALECT COACHES. >> GOLF AND TENNIS PLEASE. DAVID: POLLS ARE OPEN IN BRAZIL FOR THE FIRST ROUND OF THE COUNTRY'S GENERAL ELECTIONS. LULA DA SILVA OF THE WORKERS PARTY FACES RIGHT WING CHALLENGER FLAVIO BOLSONARO. CHRISTINA: THE MATCH REMAINS CLOSE WITH LULA EXPECT TO RECEIVE 47% OF THE FIRST ROUND COMPARED TO BOLSONARO'S 44%. BACK WITH US IS BLOOMBERG'S BRAZIL COUNTRY CHIEF. IT IS SO GREAT TO SEE YOU. WE GET TO FINISH FROM YESTERDAY. POLLS ARE FINALLY OPEN UP FOR YOUR TRACKING ALL OF THIS. IS TURNOUT IMPORTANT TO ONE CANDIDATE OR THE OTHER, WALK US THROUGH WHAT YOU ARE SEEING? >> TURNOUT IS EXTREMELY IMPORTANT. AS YOU SHOWED POLLS ARE OUT LAST NIGHT WITH THREE MAJOR POLLS THAT CAME OUT OF THE END OF THE DAY WHICH ALSO A VERY SIMILAR SCENARIO. PRESIDENT LITTLE HAS A VERY SLIGHT ADVANTAGE WHEN YOU LOOK AT THE FIRST ROUND WHICH IS WHAT WE ARE VOTING FOR TODAY BUT THEN OF COURSE WE DO NOT EXPECT THIS RACE TO ACTUALLY END TODAY. MOST PEOPLE WE TALKED TO THINK THAT WE WILL HAVE TO GO BACK TO THE POLLS IN THREE WEEKS. AND THAT IS WHEN IS IMPORTANT TO UNDERSTAND HOW THE CAMPAIGN WILL HAVE MOVING FORWARD AND WHAT EXACTLY THE CANDIDATES WILL DO IN ORDER TO TAKE ADVANTAGE OF THE PEOPLE THAT ARE NOT VOTING TODAY WILL BE CONVINCED TO COME BACK TO POLLS IN THREE WEEKS. IT'S IMPORTANT TO REMEMBER IN BRAZIL IS MANDATORY TO VOTE IF YOU'RE OVER 18 YOUR CHECKS TO GO TO POLLS. OTHERWISE YOU HAVE TO EXPLAIN WHY YOU DIDN'T. AND PAY VERY SMALL FEE EQUIVALENT TO ONE DOLLAR. DAVID: THIS IS A WIDER POOL THAN JUST THE TWO OF THEM. THERE WAS THIS COMMENT FROM BOLSONARO GOING IN SAYING VOTE STRATEGICALLY, TALK A LITTLE BIT ABOUT THAT. WHAT THE POOL HAS BEEN IN THE WAY THESE TWO LEADING CANDIDATES WILL PLEAD THEIR CASE TO VOTERS WHO MIGHT BE INTERESTED IN SOME OTHER CANDIDATE BUT MIGHT THINK STRATEGICALLY. FILIPE: IT'S A VERY GOOD POINT. WE HAD BOTH CANDIDATES BOTH VOTED. FLUFFIER VOTED IN RIO AND PRESIDENT LOU IN SAO PAULO. -- FLAVIO VOTED IN RIO AND PRESIDENT LULA VOTING IN SAO PAULO. MOST OF THE THREE CANDIDATES THAT HAVE VERY SMALL REPRESENTATION IN POLLS SO FAR MOST OF THEM ALIGNED WITH THE RIGHT WING. MOST OF THEM ARE ACTUALLY LET'S SAY MUCH CLOSER WHEN IT COMES TO ECONOMIC OR EVEN CONSERVATIVE VIEWS AS BOLSONARO HAS. SO WHEN HE MEANS VOTE STRATEGICALLY, HE WILL BE TRYING TO CONVINCE THOSE VOTERS TO ACTUALLY VOTE FOR HIM AND AVOID A SECOND ROUND. IT IS VERY HARD TO TELL WHETHER THIS WILL BE POSSIBLE. POLLS ARE STILL NOT REFLECTING THIS SHIFT EVEN THOUGH THEY HAVE CHANGED OVER THE PAST WEEK OR SO. WHAT WE HAVE SEEN OVER THE PAST THREE WEEKS IN BRAZIL IS THE PERCENTAGE, THE DIFFERENCE BETWEEN THE TWO CANDIDATES HAS NARROWED A LOT. THREE MONTHS AGO WE WOULDN'T EXPECT THIS RACE TO BE SO TIGHT AS IT IS RIGHT NOW. SO IT IS VERY IMPORTANT TO KNOW AFTER POLLS CLOSE AT 5:00 P.M. BRAZIL TIME. WHAT THE DIFFERENCE WILL BE AND WHAT EXACTLY WILL BE THE ADVANTAGE OF WHOEVER IS IN FIRST PLACE. CHRISTINA: THIS WAS KIND OF THE REMIX OF THE 2020 TWO RACE, SAME LAST NAMES. FLYWHEEL BOLSONARO IS -- FLAVIO BOLSONARO IS THE SON OF JAIR BOLSONARO WHO IS SERVING TIME FOR ATTEMPTING A COUP AFTER THE LAST. HAVE YOU SEEN ANY CONCERNS REGARDING SECURITY SO FAR? FILIPE: A VERY GOOD LINEUP OF WHAT COULD BE A GOOD NETFLIX SHOW SOME SORT. LATIN AMERICAN POLITICS. CHRISTINA: LET'S DO IT WE WILL WRITE IT. FILIPE: BOLSONARO IS THE SON OF THE PRESIDENT WHO WAS PRESIDENT. HE IS ACTUALLY IN JAIL RIGHT NOW, CONVICTED LAST YEAR FOR ATTEMPTING A COUP SO FLAVIO WAS HIS CHOSEN CANDIDATE TO RUN THIS YEAR. THE FIRST TIME HE'S RUN AGAINST THE SEVEN-TIME PRESIDENT LULA, A WELL-KNOWN NAME IN BRAZIL. A VERY STRONG MOVE TO THE LEFT WHILE FLAVIO BOLSONARO IS A REPRESENTATION OF THE RIGHT. IT IS MUCH MORE ALIGNED WITH THE U.S.. TRUMP IS ALREADY INDICATED HIS LET'S SAY INTENTIONS IN SUPPORT TO FLAVIO EVEN THOUGH HE IS NOT SAID THAT PUBLICLY OVER THE PAST FEW MONTHS DURING THE CAMPAIGN. YOU MENTION SECURITY. IT'S FAIR TO SAY THAT EVERYTHING IS FINE IN BRAZIL RIGHT NOW THERE'S NO CONCERN PEOPLE ARE NOT AFRAID TO GO OUT OR VOTE. YOU DON'T SEE ANY PARTICULAR SECURITY SCHEME APART FROM THE ONE YOU WOULD EXPECT FOR A DAY LIKE TODAY WHEN THE ENTIRE COUNTRY'S VOTING AT THE SAME TIME. WE HAD AN ALERT BY THE U.S. AND THE AUSTRALIAN COUNSELOR SERVICES AT THE EMBASSY IN BRAZIL AND THE BOTH HALT THEIR OPERATIONS CITING SECURITY CONCERNS. THE BRAZILIAN FEDERAL POLICE SAID THEY WERE WORKING WITH THE AUTHORITIES BUT THERE WAS NEVER A CLEAR INDICATION OF WHAT EXACTLY THEY WERE TALKING ABOUT. WHAT WE HAVE SEEN IN THE PREVIOUS MONTHS IS PRESIDENT L ULA THAT THERE COULD BE EFFORTS TO INFLUENCE THE ELECTION HERE. RIGHT NOW WE HAVEN'T SEEN ANYTHING THAT WOULD INDICATE THIS IS HAPPENING BUT THERE IS THE CONCERN PRESIDENT LULA WAS IN NEW YORK AND MENTIONED HE WOULD NOT ACCEPT ANYONE INTERFERING IN BRAZIL USE -- BRAZIL'S ELECTION. HE DIDN'T MENTION ANY LEADER PET HE DID NOT TALK TO TRUMP DURING HIS VISIT TO THE U.S. BUT WE KNOW THIS IS A VERY IMPORTANT TOPIC, IT'S A HUGE TOPIC FOR THE COUNTRY TODAY. I CAME FOR MY APARTMENT THAT'S VERY CLOSE TO THE OFFICE, THE CITY IS CALM. ALL OF HER BRAZIL EVERYONE IS ACTUALLY VOTING AND WE DON'T SEE ANYTHING IT WOULD BE ALARMING AT THIS POINT. DAVID: I SHOULD SAY A HUGE PART RUNNING THIS TOPLINE BLOG WHICH I ENCOURAGE EVERYONE TO FOLLOW TODAY. FIND THAT ON THE TERMINAL YOU CAN FIND IT ON A WEBSITE AS WELL . LIVE UPDATES THROUGHOUT THE DAY. CHRISTINA: I REALLY LIKE WHEN WE DO THOSE. IT'S REALLY FAST IT'S EVERYTHING YOU NEED TO KNOW. WHEN WE COME BACK, BTW WITH LISA AND ONE STORY ABOUT A VERY -- DAVID: YOU CAN LISTEN TO US ON BLOOMBERG RADIO, STREAM MUST LIVE ON THE BLOOMBERG BUSINESS APP, FIND US AT BLOOMBERG.COM AS WELL. DAVID: WELCOME BACK TO BLOOMBERG THIS WEEKEND. STORIES YOU MAY HAVE MISSED THIS WEEK. CHRISTINA: LISA I GOT A FRESH COFFEE I'M HERE AND READY TO LEARN THINGS. LISA: DO YOU GUYS GO TO THE SELF CHECKOUT LINE? DAVID: OFTEN THERE'S NO CHOICE. NOW IT FEELS LIKE YOU HAVE TO. CHRISTINA: I HATE THE SELF CHECKOUT. LISA: IT'S A BATTLE. THAT'S WHAT THIS IS ABOUT. THE WASHINGTON POST. -- IT STRESSES ME OUT I DON'T LIKE IT I ALWAYS BUY MORE STUFF THAN I THINK I HAVE. I JUST WANT TO HAND IT TO SOMEBODY. DAVID: DO YOU EVER JUST MISSED THE SCAN AND PUT IN THE BAG. CHRISTINA: FIRST OF ALL I WOULDN'T ADMIT THAT ON TV BUT NO I DON'T WORRY ABOUT -- BUT I DO WORRY ABOUT THAT AND IT STRESSES ME OUT. LISA: PART OF THE PROBLEM IS BECAUSE OF THEFT SOME OF THESE COMPANIES AND RETAILERS ARE PUSHING BACK. THIS IS THE WASHINGTON POST. SUPERMARKET CHECKOUTS ARE A BLESSING AND A CURSE. SHOPPERS ARE SPLIT KIND OF LIKE OVER HERE. SOME FIND IT FRUSTRATING AT TIMES WHEN YOU GET TO THE PRODUCE AND YOU ARE LIKE WHAT IS THIS. AVOCADO. DAVID: THEY DON'T KNOW IF THEY ARE ORGANIC. >> THAT I HAVE DONE. >> THERE YOU GO. DAVID: IT ALL LOOKS LIKE A BANANA TO ME. >> I'M JUST DOING MY BEST. LISA: IT'S BECAUSE OF THINGS LIKE THAT SO SOME RETAILERS TRADER JOE'S LOVES THE IN PERSON. THEY DON'T DO THE SELF CHECKOUT THEY GO BY THAT BUT YOU HAVE OTHERS WHO WANT TO IMPROVE IT WITH TECHNOLOGY YOU OTHERS WHO ARE CUTTING BACK MAY BE ONLY FIVE ITEMS NOW INSTEAD OF 12 THERE USED TO BE. BUT IT'S CHANGING KIND OF THE DYNAMICS OF WHO'S WORKING THERE. LET'S SAY THE WORKERS IN A DOING THE REGISTER BUT NOW THEY MAY BRING IN THE CART OUT TO THE PEOPLE WHO ARE DOING THE PICKUP IN THE PARKING LOT. JOBS ARE CHANGING. DAVID: SOME OF THE FIGURE THAT OUT. CHRISTINA: THE LIGHT STARTS FLASHING. DAVID: HITTING THE TEAR BUTTON. CHRISTINA: ANNOYED AND ALSO THAT'S PARTIALLY TRUE. UNIQLO THEY HAVE THIS HIGH TECH THING WHERE YOU DUMP IT IN THE BIN ALL AT ONCE AND IT TELLS YOU. AT THE SAME TIME IF YOU NEED TO GO I WAS ONE WITH A LOT OF TOURISTS WHO DIDN'T UNDERSTAND THE TEST SYSTEM. THEY ARE -- LIKE A COMPLETE -- SO CONFUSED WHY THEY WANT HELP. I THINK IT CUTS DOWN ON THE IN PERSONAL RELATIONSHIP. DAVID: IT CAN. LISA: DON'T YOU GO FOR AMAZON AT THE CART. CHRISTINA: THERE WAS A THING WHERE PEOPLE ARE WATCHING THE CAMERAS AND DOING THAT. DAVID: NEXT. LISA: PUREBRED DOGS CAN COST A PRETTY PENNY. AS YOU MAY OR MAY NOT KNOW. [LAUGHTER] LISA: HOW ABOUT THIS. LATE $30,000 SHEEPDOGS PUTTING TINY U.K. TOWN ON THE GLOBAL MAP. THIS IS IN NORTH ENGLAND TOWN FOR THE PAST THREE DECADES THEY HAVE AUCTIONS FOR WORKING SHEEPDOGS. THEY CAN GET AS MUCH AS 30,000 DOLLARS THAT DOESN'T INCLUDE THE TRANSPORTATION TO GET THE DOG BACK. BUT BUYERS FROM AROUND THE WORLD THEY GO BACK AND GET THEM AS PUPPIES OR FULLY TRAINED AND -- DAVID: FULLY TRAINED? LISA: THE FARMERS LOVE THEM. THEY WORK THE FIELD AND DO BETTER THAN A REGULAR EMPLOYEE. THEY LOVE THE SHEEPDOGS. CHRISTINA: YOU WATCH THE VIDEOS OF THE PUPPIES WHERE THEY GIVE THEM A BALL AND AUTOMATICALLY START HURTING IT, --HERDING IT. IT'S CRAZY. LISA: THEY HAD DRONES TRYING TO REPLACE THEM AND THE SHEEP SAID THEY WOULDN'T. DAVID: CHRISTINA: OUR MARKET GETTING BULLIED BY AI IS SHEEP? DAVID: THAT'S A JOB REPLACEMENT. LISA: YOU GUYS JOKE WITH ME ABOUT WHAT I EAT IN THE MORNING AND WHAT I EAT ALL THE TIME. PROTEIN PANCAKES AND PROTEIN GREEK YOGURT. HERE'S A STORY FROM THE NEW YORK TIMES HAVE WE REACHED PEAK PROTEIN? >> THE ANSWER IS YES. LISA: YOU HAVE THE BARS IN THE PROTEIN POWDERS AND ALL THAT BUT NOW YOU ARE SEEING PROTEIN CANDY PROTEIN CHIPS AND CRACKERS AND PIZZA, PROTEIN WATER. AND THE PROBLEM IS YOU'RE GETTING THE BIG NAME BRANDS COMING IN BUT YOU HAVE CHEERIOS PROTEIN CEREAL POP TARTS PROTEIN WHATEVER THOSE ARE. I DON'T EVEN KNOW. MAC AND CHEESE LIKE DORITOS PROTEIN. IT IS GETTING OUT OF CONTROL. CHRISTINA: AND THERE'S A SHORTAGE AS YOU TOLD US. LISA: DOCTORS RECOMMEND THE GLP-1'S SO THEY WANT TO INCREASE THE AMOUNT OF PROTEIN. BUGONIA WITH 10 GRAMS OF PROTEIN IS A DOUGHNUT. DAVID: LISA IN THE BACK WHEN I REACH FOR A PRODUCTION LINE CHRISTINA: ONE PARTICULAR UNHEALTHY SNACK UPSTAIRS. HE GETS MAD AT ME EVERY TIME I EAT THEM. CHRISTINA: THEY'RE NOT EVEN PROTEIN. MAYBE THAT'S THE SOLUTION. DAVID: SPICY. LISA: TALKING PROTEIN I'LL GET TO THIS LAST ONE. WALL STREET JOURNAL FIT WOMEN WANT TO SHOW OFF THEIR BICEPS. LET'S GO. DAVID: LET'S GO. LISA: IT'S BECAUSE THIS IS ACTUALLY THE MOVIE THE ODYSSEY IT'S CALLED THE ODYSSEY EFFECT. MATT DAMON'S ARMS IN ONE SCENE OF THE ODYSSEY OF THIS 35-YEAR-OLD WOMAN. IT'S HER ARMS. >> SOMEONE DROPPED THE MAP BY SUBROUTINE SOMEONE SAID THAT SHOT THAT THEY TWEET IT IS A WOMAN. SO THAT KIND OF SPARKED ALL OF THIS. WOMEN WANT TO GO OUT THERE AND SHOW IT OFF. IT SHOWS HOW STRONG THEY ARE. IT'S EASIER LIKE YOUR ARMS TONE FASTER THAN YOUR GLUTES OR YOUR ABS. BUT IT'S JUST A -- CHRISTINA: LISA WANT TO SHOW OFF THE ARMS. >> I'M LEAVING MY BLAZER ON. DAVID: ALWAYS POPULAR. LISA MATEO THANK YOU VERY MUCH. 9:00 IN NEW YORK CITY. DAVID: THE NEXT HOUR BLOOMBERG THIS WEEKEND STARTS NOW. >> WELCOME TO BLOOMBERG THIS WEEKEND LIVE FROM NEW YORK WITH DAVID GARRE, CHRISTINA RUFFINI AND LISA MATEO. THE LATEST HEADLINES, KEY ANALYSIS, A BIG INTERVIEWS AND THE STORIES THAT HIT HOME ON YOUR DAYS OFF. CHRISTINA: WELCOME BACK TO BLOOMBERG THIS WEEKEND, AND YOU LIVE FROM OUR HEADQUARTERS IN NEW YORK. DAVID: IT IS SUNDAY, OCTOBER 4 WHICH MEANS WE ARE LESS THAN ONE MONTH AWAY FROM MIDTERM ELECTIONS WITH EARLY VOTING UNDERWAY IN SEVERAL STATES. A CRITICAL ELECTION THAT WILL DETERMINE CONTROL OF CONGRESS. CHRISTINA: THE TRUMP ADMINISTRATION HAS MADE ELECTION SECURITY A TOP PRIORITY ON MAIL-IN VOTING AND PLANS TO DEPLOY HUNDREDS OF FEDERAL ELECTION MONITORS ACROSS THE COUNTRY. WE ARE HEARING FROM ATTORNEY GENERAL OF THE U.S. TODD BLANCHE IN AN EXCLUSIVE INTERVIEW WITH MILES AT BLOOMBERG. HE ASKED ABOUT THE ELECTION TALK OF USING THE INSURRECTION ACT AND THE INSPECTOR GENERAL'S REPORT AND RENOVATIONS OF THE FEDERAL RESERVE. >> I WANT TO START WITH THE MIDTERM ELECTIONS. THEY ARE ABOUT A MONTH AWAY AND PRESIDENT TRUMP HAS MADE ELECTION INTEGRITY A MAJOR FOCUS OF THIS ADMINISTRATION AND THE JUSTICE DEPARTMENT HAS BEEN ANNOUNCING NEW ELECTION CRIME CASES MOST EVERY WEEK. BLOOMBERG NEWS ANALYZED ABOUT 30 FEDERAL ELECTION CRIME RELATED MATTERS FROM 20 21 THROUGH ABOUT 2026 AND WE FOUND A SHARP CONCENTRATION OF THOSE CASES IN THE PAST TWO YEARS. MOST OF THE CHARGING DOCUMENTS ALLEGE INDIVIDUAL ACTS RATHER THAN A COORDINATED SCHEME AND SEVERAL OF THEM INVOLVE ALLEGED VOTING FROM ELECTIONS THAT WERE YEARS EARLIER. HELP ME PAINT A PICTURE HERE, WHAT EVIDENCE OF YOU UNCOVERED ABOUT ALLEGED NONCITIZEN VOTING AND WHY DO YOU FIND IT IS A SIGNIFICANT PROBLEM IN THIS UPCOMING ELECTION? AG BLANCHE: YES SO YOU'RE RIGHT THIS IS A PRIORITY OF PRESIDENT TRUMP IN THIS ENTIRE ADMINISTRATION SO WE'VE CHARGED NEARLY 100, 96 INDIVIDUALS WITH SOME SORT OF ILLEGAL VOTING WHETHER THEY ARE HERE ILLEGALLY IN VOTING OR EVEN IF THEY HAVE STATUS HERE BUT THEY'RE NOT CITIZENS OF THE NOT ALLOWED TO VOTE AND YOU POINTED OUT THE FOCUS OF THIS ADMINISTRATION DURING THE BIDEN ADMINISTRATION THERE WERE 13 CHARGE OF THE COURSE OF FOUR YEARS. SO WE HAVE MADE IT A PRIORITY. YOU ARE ALSO RIGHT THAT WHAT WE ARE DOING RIGHT NOW IS CHARGING INDIVIDUALS SO THESE ARE MEN AND WOMEN WHO WE CAN PROVE WE BELIEVE BEYOND A REASONABLE DOUBT HAVE ILLEGALLY VOTED. IN THE CASE WE ANNOUNCED SOME OF THEM VOTED AS RECENTLY AS THIS YEAR AND THE PRIMARY ELECTIONS IN 2026 AND SO THIS IS A PRIORITY. DOES THAT MEAN THERE ISN'T A LARGER EFFORT WERE INVESTIGATING ORGANIZED GROUPS TO TRY AND EITHER -- GET PEOPLE ON THE VOTER ROLLS WERE NOT ELIGIBLE OR OR TO DO OTHER THINGS TO IMPROPERLY INFLUENCE OUR ELECTIONS, YES WE ARE INVESTIGATING THAT AS WELL. AND BY THE WAY YOU -- THAT'S PRESIDENT TRUMP'S ADMINISTRATION PRIORITIES BUT WE ARE NOT MAKING THIS A PARTISAN ISSUE. THE PEOPLE WE HAVE CHARGED WITH ILLEGALLY VOTING I DON'T KNOW -- WHETHER THEY VOTED FOR REPUBLICAN OR DEMOCRAT, THE POINT IS YOU -- YOU CAN ONLY BE A CITIZEN AND VOTE YOU CANNOT BE HERE ILLEGALLY YOU CANNOT -- AND SO THAT'S A BIG FOCUS OF WHAT WE ARE DOING AND WE WILL KEEP ON DOING IT AND WE ARE PARTNERING WITH DHS AND THAT'S SOMETHING THAT WE'VE BEEN DOING SINCE WE STARTED AND WE WILL CONTINUE TO. >> LET'S TALK AT THE SCALE OF THE PROBLEM. YOU SAY AND LOOKING AT SOME OF THESE CASES IN THE CASES THE DEPARTMENT HAS BROUGHT, HOW MANY OF THESE BALLOTS DOES DOJ ALLEGE WERE UNLAWFULLY CAST BY NONCITIZENS, ALL NONCITIZENS, TALK ABOUT THE SCALE OF IT? PEOPLE HERE ABOUT THIS AND AS YOU WERE TALKING ABOUT SO MANY INVESTIGATIONS INTO WHETHER THIS IS WIDESPREAD. PAINT A PICTURE OF HOW WIDESPREAD YOU FIND THIS IS. AG BLANCHE: -- WE HAVE THOUSANDS OF INVESTIGATORS. THAT DOES NOT MEAN THAT THERE ARE THOUSANDS AND THOUSANDS OF MEN AND WOMEN THEY'RE GOING TO BE INDICTED BECAUSE FOR EACH ONE OF THESE CASES WE HAVE TO PROVE THE INDIVIDUAL WE BELIEVE VOTED WHOSE REGISTERED TO VOTE AND WE BELIEVE THEY ARE HERE ILLEGALLY OR NOT ELIGIBLE TO VOTE WE HAVE TO PROVE THAT SO THAT TAKES WORK AND FEDERAL AGENTS, DHS WORKING CASES. IT'S A BIG PROBLEM. WHAT FRUSTRATES ME IS WHEN THE MEDIA SAYS YOU ONLY ARRESTED 10 PEOPLE OR CHARGE 96 PEOPLE. LET'S BE CLEAR WE HAVE NOT CAUGHT EVERYBODY. AND SO -- AND EVEN IF WE ONLY CHARGE ONE PERSON THAT SHOULD BE SOMETHING THAT MATTERS TO THE AMERICAN PEOPLE. SO HOW WIDESPREAD IT IS IS A TON OF CASES AND THERE'S MORE TO COME AND WE WILL KEEP ON INVESTIGATING AND ELECTIONS ARE OFTEN DECIDED BY VERY SMALL PERCENTAGE A FEW THOUSAND VOTES. IT'S SOMETHING THAT'S A CORE PART OF OUR DEMOCRATIC FUNCTION AND WE WILL KEEP ON DOING THAT. YOU HAVE OTHER TYPES OF VOTING CHALLENGES A FORMER POSTAL WORKER LAST WEEK WHO WAS CAUGHT THROWING AWAY MAIL AND IT INCLUDED SEVERAL OTHER MAIL-IN BALLOTS. AN INDIVIDUAL IN THAT DISTRICT WHO DIDN'T POTENTIALLY -- POTENTIALLY DIDN'T VOTE BECAUSE THEIR BALLOT WAS THROWN AWAY AND SO THAT IS ALSO ABOUT VOTER INTEGRITY. THAT SOMETHING WERE NOT LOOKING AT BUT ALL SORTS OF CHALLENGES WITH THE SYSTEM AS IT EXISTS. AND LET ME TELL YOU SOMETHING THAT'S WHAT WE TALK ABOUT THINGS LIKE VOTER ID AND AND SOME -- INTEGRITY AROUND MAIL-IN VOTING TO MAKE SURE THAT YOU CAN MINIMIZE THE CHANCE OF FRAUD AND PEOPLE NOT BEING ABLE TO VOTE. >> WE SET DOWN WITH YOUR ASSISTANT ATTORNEY GENERAL WHO IS VERY FOCUSED ON CIVIL RIGHTS AND SPECIFICALLY TALKING ABOUT SENDING 1000 ELECTION MONITORS OUT ACROSS THE COUNTRY TO MONITOR THE SELECTION. WHERE DO YOU PLAN ON SENDING THEM? AG BLANCHE: ALL KINDS OF -- VIRTUALLY EVERY JURISDICTION AND BY THE WAY THAT'S NOT UNIQUE TO THIS DEPARTMENT OF JUSTICE AND A AG DILLON IS DOING A GREAT JOB AND SHE'S ABSOLUTELY RIGHT THAT'S WHAT WERE GOING TO DO. EVERY SINGLE DEPARTMENT OF JUSTICE IN MODERN HISTORY HAS SEND PEOPLE TO ELECTION POLLING PLACES TO MAKE SURE THAT ELECTIONS WERE BEING DONE CONSISTENT WITH THE LAWS AND SO WE ARE NOT LIMITING TO A PARTICULAR STATE OR A PARTICULAR JURISDICTION, WE DON'T -- WE WANT TO MAKE SURE EVERY ELECTION WHETHER IT'S A DEMOCRAT STATE OR REPUBLICAN STATE THAT DOESN'T MATTER. WE WANT TO MAKE SURE ELECTIONS ARE BEING DONE TO THE LAW AND SO -- I SEE A LOT OF REPORTS AS IF THERE SOMETHING NEFARIOUS ABOUT THE FACT THAT WE ARE SENDING -- THAT WE ARE SENDING FEDERAL EMPLOYEES TO MONITOR AND MAKE SURE THINGS ARE BEING DONE RIGHT, THAT'S THE SAME THING THE BIDEN DOJ DID THE SAME THING THE OBAMA DOJ DID THE SAME THING WITH THE BUSH DOJ ID SO IT SHOULDN'T BE A SURPRISE. IT SHOULD BE AN EXPECTATION BY THE AMERICAN PEOPLE BUT WE THAT. >> IN ADDITION TO MAKING SURE PEOPLE ARE ABLE TO PRACTICE THEIR RIGHT TO VOTE IN A SAFE AND A WAY THAT IS IN LINE WITH THE TEACHINGS OF THIS COUNTRY, DO YOU ALSO THINK THAT YOUR MONITORS WILL LOOK FOR SUSPECTED NONCITIZEN VOTING AS A BIG PRIORITY OF THE ADMINISTRATION? AG BLANCHE: THEY ARE LOOKING FOR ANYTHING THAT -- ANY IRREGULARITY SO I'M NOT SURE HOW A MONITOR CAN NECESSARILY KNOW THAT SOMEBODY IS ILLEGALLY VOTING FROM JUST OBSERVING BUT I WOULD EXPECT THAT ANYBODY WHETHER IT'S A FEDERAL EMPLOYEE OR EVEN SOMEONE WHO WORKS FOR THE COUNTY, THE CITY WHERE THE ELECTION IS TAKING PLACE WOULD DEFINITELY RAISE THEIR HAND IF SOMEBODY IS VOTING WHO SHOULDN'T BE AND IT DOESN'T MATTER WHO THAT PERSON IS THAT OBSERVES THAT IT SHOULD BE BROUGHT TO THE INTENTION OF LAW ENFORCEMENT RIGHT AWAY. IT IS BECOME A PARTISAN ISSUE. IT'S NOT A PARTISAN ISSUE THE IDEA THAT WE IN THIS COUNTRY AND THOSE CITIZENS ARE ONLY VOTING ONCE AND SHOULD BE NODDING IN VIOLENT AGREEMENT THAT IS THE RIGHT THING TO DO. SO YES WHEN MONITORS GO OUT TO MONITOR POLLING PLACES ARE LOOKING FOR REGULARITIES AND MAKING SURE THAT EVERYTHING IS BEING DONE ACCORDING TO THE LAW AND THAT'S WHAT I THINK I EXPECT OUR FOLKS TO DO IN ABOUT A MONTH IN NOVEMBER. >> THE PRESIDENT WAS ASKED SPECIFICALLY ABOUT THE MIDTERM ELECTIONS AND THE INSURRECTION ACT. IN THE PRESENT WAS CLEAR NOT RULING OUT USING THAT AS A RELATES TO THE MIDTERM ELECTIONS. DO YOU FIND THAT IS SOMETHING DOJ IS LOOKING AT FOR THESE UPCOMING ELECTIONS IS THAT NECESSARY AT THIS POINT? AG BLANCHE: NO WE ARE NOT LOOKING AT THAT. THAT'S FEAR MONGERING FROM DEMOCRATS AND THEY KNOW THAT THAT'S NOT HAPPENING. PRESIDENT TRUMP YOU SEE HIM OUT TALKING TO THE AMERICAN PEOPLE VIRTUALLY SEVEN DAYS A WEEK OUT OF THE COUNTRY HE'S OUT TRAVELING DOING THE SAME THING FROM THE OVAL OFFICE AND THAT'S WHY -- THAT'S WHAT EVERY ONE OF THE POLITICIANS WHO ARE RUNNING REPUBLICANS DEMOCRATS ARE DOING THEIR OUT MAKING THEIR TASTE OF THE CITIZENS IN THEIR DISTRICTS AND STATES AND THAT'S WHAT DEMOCRACY IS ALL ABOUT. SO THAT'S WHAT WE ARE DOING. WE HAVE TO HAVE FAIR, SAFE AND ACCURATE ELECTIONS AND SO THERE'S A BIG DIFFERENCE BETWEEN SAYING GETTING OUT YOUR VOICE AND GETTING OUT THE MESSAGE AND TURNING A BLIND EYE WHEN YOU KNOW THERE ARE PEOPLE VOTING WHO SHOULD NOT, YOU CAN DO BOTH SEEK AND TRY TO PUT OUT A MESSAGE THAT IS CONSISTENT WITH YOUR VIEWS BUT ALSO EXPECT THERE WILL BE ELECTION INTEGRITY AND THAT'S WHAT -- THAT'S WHAT PRESIDENT TRUMP EXPECTS IN THE ATTORNEY GENERAL MAKE SURE HIS HAPPENS. BUT IT SOARS THE AMERICAN PEOPLE THE BATTLE WE WILL DO AS WELL. >> I KNOW YOU'VE DONE BATTLE IN SOUTHERN DISTRICT. SO I HAVE TO ASK MORE DEFINITIVELY CAN YOU RULE OUT USING THE INSURRECTION ACT DURING THE ELECTION? AG BLANCHE: WELL -- -- WE'RE TALKING ABOUT HYPOTHETICALS. I'VE NO IDEA THAT WOULD CAUSE THAT TO EVEN COME INTO PLAY BUT IT'S HARD TO IMAGINE THAT HAPPENING AND -- WILL I'M NOT CAN EVER SAY ABSOLUTELY POSITIVELY NOT A SHOULDN'T DO THAT BECAUSE WE TALK ABOUT HYPOTHETICALS. I THINK THE AMERICAN PEOPLE SHOWED TWO YEARS AGO THAT THEIR VOICE CAN BE HEARD AND HEARD LOUDLY AND THAT'S WHY YOU SEE PRESIDENTIAL ON THE CAMPAIGN TRAIL TRYING TO GET EVERY AMERICAN TO LOOK AT THE GREAT THINGS THAT ARE HAPPENING IN THIS COUNTRY AND THAT'S -- THAT'S THE WAY DEMOCRACY WORKS. >> LET'S TALK ABOUT FOREIGN INFLUENCE IN THE U.S. ELECTION JUST AS WE SET ABOUT A MONTH AWAY AS THE U.S. DETECTED A FOREIGN EFFORT TO INTERFERE WITH THE MIDTERM ELECTIONS? AG BLANCHE: THAT'S SOMETHING WE ARE ALWAYS INVESTIGATING NOT JUST US BUT EVEN THE BIDEN ADMINISTRATION AND SO THERE -- THERE ARE CERTAINLY ALL THESE EFFORTS BY FOREIGN ACTORS TO INFLUENCE OUR ELECTIONS NOW. THAT SHOULDN'T SURPRISE ANYBODY. WE ARE ACTIVELY WORKING WITH DHS AND THE FBI MAKING SURE THAT WE ARE INVESTIGATING AND STOPPING THAT. SO ASIDE FROM OUR USUAL INVESTIGATIVE WORK THAT WE ALWAYS DO. WERE NOT SEEING ANYTHING UNUSUAL OR SOMETHING THAT IS OUT OF THE ORDINARY WHEN IT COMES TO THAT SPACE BUT IS SOMETHING LIKE THE ELECTIONS WERE STILL THE MONTH TO GO SO STILL MAKING SURE WE ARE LOOKING AT THE MONITOR. >> ANOTHER EXTRAORDINARY STEP YOU TOOK FILING A MISCONDUCT AGAINST SEVERAL FEDERAL JUDGES IN MINNESOTA AFTER THIS BOOK TO THE NEW YORK TIMES ABOUT WHAT THEY SAID HAPPENED INSIDE THEIR COURTROOMS. OF COURSE THESE JUDGES WERE APPOINTED BY THE PRESIDENT OF BOTH PARTIES. WHAT EXACTLY DID THEY SAY THAT YOU BELIEVE VIOLATED JUDICIAL EVIDENCE? AG BLANCHE: SO -- YOU ARE RIGHT THIS IS AN EXTRAORDINARY STEP THE DEPARTMENT OF JUSTICE TALK AND IT WASN'T SOMETHING WE DID THAT WE TOOK UPON EASILY. BUT WHEN YOU HAD HERE IS TO JUDGES WHO WENT ON THE RECORD AND SEVERAL WHO APPARENTLY SPOKE OFF THE RECORD BUT STILL SPOKE TO THE NEW YORK TIMES ABOUT ONGOING LITIGATION AND CASES IN THEIR COURTROOMS. IT DID NOT MATTER WHETHER THE THEN CHIEF JUDGE WAS APPOINTED BY REPUBLICAN PRESIDENT OR SOME OF THE JUDGES WERE APPOINTED BY DEMOCRATS THAT HAD NOTHING TO DO WITH THE REASON BUT IT HAD EVERYTHING TO DO WITH THEIR JUDICIAL CANDIDATES THAT ARE THERE FOR GOOD REASONS THE JUDGES SHOULD NOT TALK TO THE PRESS ABOUT ONGOING CASES IN LITIGATION AND -- YOU CAN SEE WHY AND SOME OF THE THINGS THE JUDGES SAID WE VERY MUCH DISAGREE WITH. SOME OF THE THINGS THE JUDGES SAID THEIR APPEALS COURT HAS DISAGREED WITH. SO JUDGES ARE SUPPOSED TO -- THIS IS SO IMPORTANT TO OUR JUDICIAL SYSTEM SO IMPORTANT TO THE RULE OF LAW THAT EVERY PARTY HAS AN UNBIASED JUDGE WHO IS GOING TO HAVE THE LAW AND THE FACTS. WHAT WE SAW IN THIS NEW YORK TIMES ARTICLE QUOTING DIRECTLY QUOTING JUDGES FROM THAT COURTHOUSE IS THAT NOT ONLY WERE THEY VIOLATING JUDICIAL CANS -- BY TALKING BUT THEY WERE SHOWING EXTREME AND INAPPROPRIATE BIAS AGAINST THE DEPARTMENT OF HOMELAND SECURITY AND ICE AND SO WE HAD NO CHOICE BUT TO ACT, WE HAD NO CHOICE BUT TO FOLLOW THE PROCEDURES THAT ARE SET OUT BY FILING A COMPLAINT WITH THE EIGHTH CIRCUIT AND WE WILL SEE WHAT HAPPENS BUT THIS IS AN IMPORTANT ISSUE TO ME PERSONALLY AND I WANT TO PROTECT OUR PROSECUTORS AND OUR LAWYERS AND PROTECT DHS AND ICE. SO THEY ALWAYS HAVE A FAIR SHAKE. >> WE HAVE TO TURN TO THE FEDERAL RESERVE. THE INSPECTOR GENERAL FOR THE FED SPENT A YEAR INVESTIGATING AND THE WATCHDOG IDENTIFIED SOME SERIOUS ISSUES WITH THE WAY THE PROJECT WAS MANAGED BUT NO CRIMINAL MISCONDUCT IN THE PRESIDENT'S ASKED YOU TO PERSONALLY REVIEW THAT REPORT. WHAT DO YOU THINK IS LEFT FOR THE JUSTICE DEPARTMENT TO INVESTIGATE? AG BLANCHE: FIRST OF ALL I THINK THAT THE INSPECTOR GENERAL DID AN INCREDIBLE JOB AND A THOROUGH JOB. I'VE CAREFULLY LOOKED AT THE REPORT AND MY TEAM IS LOOKED AT IT AS WELL AND YOU ARE RIGHT WHAT WAS UNCOVERED IS A LOT OF THINGS THE LOOKS LIKE WENT VERY WRONG WITH HER ITS MISMANAGEMENT OR NOT REALLY UNDERSTANDING THE REASON FOR THE BILLS COMING IN OR WHY THEY WERE COMING IN WAY OVER THE EXPECTED BUDGET. WHAT I EXPECT WILL HAPPEN NEXT I EXPECT THERE WILL BE AN AUDITING PROCESS SO THEY HAVE THE AUTHORITY ACCORDING TO THE REPORT TO GO OUT AND AUDIT SOME OF THE WORK THAT WAS DONE TO MAKE SURE THERE WAS NOTHING CRIMINAL THAT SOME OF THESE FOLKS DID. IF THEY LEARN ANYTHING THAT RISES TO ANY KIND OF CRIMINAL MISCONDUCT YOU BETTER BELIEVE WE WILL INVESTIGATE THAT. BUT WE WERE VERY SATISFIED WITH THE REPORT AND THAT IT SHOWED WHAT PRESIDENT TRUMP HAS BEEN SAYING FOR A VERY LONG TIME WHICH IS THAT YOU SHOULD NOT HAVE SOMETHING LIKE THIS HAPPEN IN THE CITY WHERE YOU HAVE A BUDGET ABILITY THAT SUPPOSED TO BE BUILT FOR A LOT OF MONEY AND INSTEAD IT'S BUILT FOR THREE OR FOUR TIMES THE AMOUNT OF MONEY AND THERE DOESN'T SEEM TO BE ANY OVERSIGHT OR ACCOUNTABILITY BY THE LEADERS, BY THE BOARD ITSELF ENOUGH OF PRESIDENT TRUMP HAS SAID IT THINGS THAT SHOULD BE ACCOUNTABILITY BY -- BY VISTA POWELL AND AND WE WILL SEE WHAT HAPPENS IN THAT REGARD -- BUT I VERY MUCH BELIEVE THAT MR. HOROWITZ THE INSPECTOR GENERAL DID A VERY THOROUGH JOB AND WE APPRECIATE HIS WORK AND I THINK THERE'S MORE WORK TO DO TO UNDERSTAND WHAT HAPPENED ESPECIALLY WHEN IT COMES TO THE CONSTRUCTION COMPANIES AND THE FOLKS INVOLVED IN THE MASSIVE OVERBILLING WENT SO WE WILL SEE WHAT HAPPENS. >> DO YOU BELIEVE JAY POWELL ACTED APPROPRIATELY AND WOULD YOU CONSIDER A CRIMINAL INVESTIGATION INTO JAY POWELL? AG BLANCHE: I THINK IT'S PRETTY CLEAR HE DID NOT ACT APPROPRIATELY AS FAR AS OVERSIGHT AND OF THE INSPECTOR GENERAL CONCLUDED OVER NOT -- YOU KNOW NOT MAKING MISTAKES AND HAVING ANY SORT OF OVERSIGHT OF THE FOLKS DOING A BILLION-DOLLAR PROJECT ISN'T NECESSARILY A CRIME SO I'M KNOCKING TALK ABOUT AN INVESTIGATION. WE CLOSE THAT AS YOU KNOW. AND THERE'S NOTHING WE ARE NOT REOPENING A CRIMINAL INVESTIGATION INTO HIM BUT THERE'S A BIG DIFFERENCE WHETHER HE DID ANYTHING WRONG AND WHETHER HE SHOULD BE HELD ACCOUNTABLE AND WHETHER THERE'S ANY CRIMINAL CONDUCT. I THINK THE IG REPORT SPEAKS FOR ITSELF ABOUT WHAT THE BOARD DID AND DID NOT DO. I THINK WE SHOULD FOCUS ON THAT SORT OF ACCOUNTABILITY AND I THINK THAT'S WHAT THE PRESIDENT EXPECTS ME TO DO. >> FEDERAL TRADE COURT PRESS THE DEPARTMENT OF JUSTICE THIS WEEK TO LOOK AT THE PRESIDENT'S USE OF SECTION 301 TO IMPOSE FIRST LABOR TARIFFS ON DOZENS OF TRADING PARTNERS AND BUSINESSES AND STATES ARE CHALLENGING THOSE. THEY SAY FORCED LABOR IS BEING USED AS AN EAGLE VEHICLE TO SUPPORT SWEEPING TARIFFS AFTER THE COURT REJECTED THOSE EARLIER ONES. WHAT IS YOUR ANSWER TO THAT? AG BLANCHE: WELL -- FIRST OF ALL IT'S UNDER LITIGATION SO I WANT TO BE CAREFUL TALKING OUTSIDE OF WHAT WE SAID IN COURT IN OUR BRIEFS. WHAT WE SAID AND WILL BE ARGUED TO THE COURT IS THIS IS A WHOLE DIFFERENT TARIFF THAN THE SUPREME COURT SAID WE COULDN'T DO. SO WE WILL SEE WITH THE COURT DOES. THE BOTTOM LINE IS THE PRESIDENT OF THE UNITED STATES HAS EXTRAORDINARY AUTHORITY GIVEN TO HIM BY THE CONSTITUTION AND BY CONGRESS AND STATUTES TO RUN THIS COUNTRY INCLUDING IN THE RIGHT CIRCUMSTANCES TO IMPOSE TARIFFS AND SO -- WE VERY MUCH BELIEVE WE ARE EXERCISING YOU KNOW WHAT WE ARE DOING IS A PERFECTLY PROPER EXERCISE OF PRESIDENT TRUMP'S AUTHORITY AND AND WE WILL SEE WHAT THE COURT SAYS, BUT YOU ARE KNOCKING TO SEE THE PRESIDENT STOP DOING WHAT HE'S BEEN DOING TO TRY AND HAVE SOME SORT OF A QUALITY BETWEEN THE UNITED STATES AND OTHER COUNTRIES WHEN IT COMES TO TRADE AN IMPORTANT EXPORTING SO WE WILL SEE WITH THE COURT SAYS. I THINK THEY'VE DONE A GREAT JOB AND WE CERTAINLY THINK THAT WE SHOULD WIN ON THE MERITS OF THIS CASE. >> THANK YOU FOR TAKING TIME TO SPEAK WITH US TODAY. SEE YOU BACK ON BLOOMBERG. >> THANKS A LOT, GOOD BEING HERE. CHRISTINA: MYLES MILLER IS HERE WITH US ON -- IN STUDIO. I WANTED TO POINT OUT THE PRESIDENT DID TRUTH SOCIAL POSSIBLY ABOUT THIS INTERVIEW SEEMS TO BE LOCKED INTO SOME OF THESE COMMENTS SAYING THE ATTORNEY GENERAL CLEARLY STATED THE JUSTICE DEPARTMENT WILL INVESTIGATE ANY AND ALL EVIDENCE OF WRONGDOING AT THIS WEEK'S REPORT DETAILED THE PROJECT IS DUE HUNDREDS OF MILLIONS OF DOLLARS ABOVE -- OVER BUDGET. YOUR TAKE ON HAVING THE PRESIDENT MOSTLY REACTING TO YOUR INTERVIEW AND WHAT IS THE FUTURE OF THIS INVESTIGATION? WHAT ARE THE POSSIBLE RAMIFICATIONS FOR JAY POWELL? MILES: IT'S GOOD TO KNOW THE PRESIDENT ENJOYS THE TERMINAL. MANY PEOPLE ENJOY THE TERMINAL AND BLOOMBERG GOVERNMENT. IT'S CLEAR THE JUSTICE DEPARTMENT HAS SAID THE CRIMINAL FOCUS OF THIS IS DONE WITH. BUT THERE MAY BE SOME OTHER RAMIFICATIONS. THERE WAS BIG INVESTIGATION INTO THE GSA IN 2011 AND POSSIBLE MALFEASANCE. RECOMMENDING ALL OF THESE REQUIREMENTS AND CHANGES IN THOSE COULD BE IMPLEMENTED. IT LOOKS LIKE FROM LOOKING AT THIS INSPECTOR GENERAL REPORT THIS CRAZY COST OVERRUNS AND IT IS WILD TO SEE THAT WHEN THE FEDERAL RESERVE HAS TAKEN AN AUSTERITY PUSH. TO SPEND ALL THIS MONEY ON HEADQUARTERS. WHEN YOU'RE IN THE WHITE HOUSE MAKING HER WAY BACK LIKE YOU DO PRETTY OFTEN IF CONSTRUCTION SEEMS TO HAVE GONE ON AS LONG AS CONSTRUCTION. CHRISTINA: WE WERE TALKING ABOUT THAT, THAT'S BEEN UNDER CONSTRUCTION SINCE HAVE COVERED THE STATE DEPARTMENT WHICH I NO LONGER DO AND IT'S STILL THERE. MILES: IT IS A SIGH OF RELIEF FOR JEROME POWELL. THE PRESIDENT OF COURSE WHEN THIS REPORT CAME OUT LAST WEEK WAS STILL SAYING THERE SHOULD BE RAMIFICATIONS FOR HIM. BUT TODD BLANCHE I THINK PUT COLD WATER ON THAT AND BASICALLY SAID IT LOOKS LIKE HE WASN'T MONITORING WHAT WAS GOING ON BUT IT SEEMS LIKE CASE CLOSED ON THIS. BUT YOU KNOW I THINK THE COLD WATER ON THAT FIRE, OF THE FIRE IS PRETTY MUCH OUT. DAVID: YOU PRESSED HIM ON THE WAY THE DOJ IS LOOKING AT THE ELECTIONS. COMING OUT OF THAT REPORTING ON THIS, YOUR SENSE OF WHAT THEIR POSITION IS GOING TO BE. I THINK WHAT PEOPLE WONDERING ABOUT IS WHAT'S HAPPENING IN THE DAYS THAT FOLLOW. MYLES: DOJ WANTS TO MAKE THE CASE THAT IT'S IMPORTANT SPECIFICALLY IN PLACES WHERE THEY FEEL LIKE THERE MAY BE ISSUES WITH THE ELECTION. WE PRESSED HIM ON WHETHER THESE MONITORS WILL BE LOOKING FOR FOLKS WHO WOULD BE VOTING ILLEGALLY SO I THINK HE WAS CLEAR AND HAD CANDOR AND SAID OUT WE KNOW THAT WOULD BE HAPPENING DAY OF. SO YOU KNOW IT IS INTERESTING IT'S BEEN A BIG PUSH TO THE TRUMP ADMINISTRATION NONCITIZEN VOTING, BASICALLY SAYING WE LOOKED AT THESE CASES, WE WERE IN BLOOMBERG AND WENT THROUGH THE SPECIFIC STATUTE IS NONCITIZEN VOTING OR VOTING BY ALIENS AS WITH THE U.S. GOVERNMENT CALLS IT. THERE WEREN'T THAT MANY CASES BUT THERE WERE MANY INVESTIGATIONS GOING ON. BUT IF YOU HAVE 100 CASES THAT DOES NOT YOU KNOW MATCH THE MILLIONS OF PEOPLE WHO VOTE. WHAT HE IS SAID AND WHAT THE ASSISTANT ATTORNEY GENERAL SAID IS ONE NONCITIZEN VOTING REALLY DOES YOU NO STRIKE AT THE HEART OF WHAT VOTING IS REALLY SUPPOSED TO BE ABOUT. IT WILL BE INTERESTING TO SEE THE ELECTIONS. ALSO KEEPING IN CONTACT WITH SECRETARIES OF STATE FROM AROUND THE COUNTRY AND PLAYING A BIG PART IN THE SORT OF THE -- I.T. INFRASTRUCTURE OF THESE ELECTIONS AND MAKING SURE THERE'S NO FOREIGN INTERFERENCE. DOESN'T SEEM LIKE THEY HAVE MUCH THERE AT THIS POINT. WE SEE THESE THINGS HAPPEN ALL THE TIME. IT MAY NOT JUST BE IN THE VOTING BOOTH BUT COULD THEY ATTACK A CRITICAL INFRASTRUCTURE WHETHER THAT BE POWER JUST TO SO FEAR AND SOMETIMES THEY DO IT ONLINE. WE SEE INSTANCES IN WHICH CHINA AND OTHER COUNTRIES HAVE GONE ONLINE AND TRIED TO SKEW PEOPLE TO DIFFERENT -- DIFFERENT CANDIDATES. SO IT IS VERY INTERESTING TO SEE WHAT HAPPENS THIS ELECTION. DAVID: SENIOR NATIONAL REPORTER JOINING US ON SET WITH THAT INTERVIEW. ESPECIALLY WITH REGARD TO THAT POWELL INVESTIGATION. THANK YOU VERY MUCH. CHRISTINA: WE ARE LESS THAN ONE MONTH OUT FROM THOSE MIDTERM ELECTIONS AND PRESIDENT TRUMP SPENT LAST NIGHT IN OHIO RALLYING FOR REPUBLICANS IN COMPETITIVE RACES FOR SENATE AND GOVERNOR. A STATE THE PRESIDENT WON BY MORE THAN 11 POINTS IN 2024. A NEW NEW YORK TIMES CNN POLL HAS DEMOCRAT SHERROD BROWN EDGING OUT INCUMBENT SENATOR JOHN HUGH STEAD BY THREE POINTS. DAVID: THE PRESIDENT SAYING TO PRETEND THAT I'M RUNNING. KATE SULLIVAN TRAVELED WITH THE PRESIDENT JOINS US THIS MORNING. ALSO JOINED BY RON BROWNSTEIN. GREAT TO HAVE YOU WITH US. KATE LET ME START WITH YOU AND GET A SENSE OF THE FEEL LAST NIGHT IN OHIO WITH THE PRESIDENT COMPLAINING ABOUT THE COVERAGE THIS TOOK PLACE IN A HIGH SCHOOL GYMNASIUM IT'S NOT THE KIND OF ARENA WE ARE ACCUSTOMED TO THE PRESIDENT SPEAKING IN. PUT THAT IN A LARGER CONTEXT. THE PRESIDENT HAD BEEN TRAVELING IN RED STATES OF THE LAST FEW DAYS WHICH A REMAKE OF THE RECEPTION. KATE: ABSOLUTELY. AS SOMEONE WHO I COVERED EVERY SINGLE ONE OF THE RALLIES IN 2024 AND I WAS STRUCK BY THE SIZE OF THE VENUE. IT WAS A MUCH SMALLER VENUE THAN I WAS USED TO IN THE 2024 CAMPAIGN AND IT WAS VERY CLEAR THAT THE CROWD THERE WAS VERY ENTHUSIASTIC. BUT IT WAS A SMALLER VENUE AND IT IS CLEAR AT THIS MOMENT THAT REPUBLICANS ARE WORRIED ABOUT THE MIDTERMS, AND REALLY PLAYING DEFENSE RIGHT NOW AND YOU CAN SEE THAT WE TALK ABOUT THE PRESIDENT REALLY STARTING OFF THIS MIDTERM CAMPAIGN BLITZ GOING TO RED STATES, TEXAS AND OKLAHOMA AND NOW HE IS IN OHIO WHICH IS A BATTLEGROUND STATE BUT IT WAS INTERESTING TO SEE THE THINGS HE TALKED ABOUT IN THE THINGS HE DIDN'T TALKED ABOUT. THERE REALLY WASN'T MUCH MENTION OF THE WAR IN IRAN. HE DID SAY IRAN CANNOT HAVE A NUCLEAR WEAPON BUT IT WAS NOTABLE AT THIS TIME THIS HAS GONE ON FOR SO LONG AT THIS POINT FOR SEVEN MONTHS THAT THERE REALLY WAS BARELY ANY MENTION OF THAT. ANOTHER THING TO OHIO BUT HAS BEEN A REALLY IMPORTANT POLITICAL ISSUE ACROSS THE COUNTRIES IN STATA CENTER'S. THE PRESIDENT DEFENDED DATA CENTERS HE'S BEEN TALKING SO MUCH ABOUT ARTIFICIAL INTELLIGENCE AND THE NEED FOR THE U.S. TO BE A REAL LEADER ON THAT. AT THE TIME SO CONCERNED ABOUT IT VOTERS ARE REALLY FEELING A LOT OF ANXIETY ABOUT WHAT THIS COULD MEAN FOR THE JOB MARKET AND WHAT IT COULD MEAN FOR A VARIETY OF ISSUES. THE PRESIDENT IS REALLY DISMISSIVE OF THOSE ANXIETIES AND CONCERNS SPENDING A LOT OF TIME TOUTING THEM AND TALKING ABOUT THEM AND PRAISING THEM. DAVID: LOOKING AT THAT NEW POLL, MOST VOTERS SAY THEY ARE OPPOSED TO DATA CENTER CONSTRUCTION OF THE TINES NOTES ONLY 3% OF VOTERS IN OHIO SAY DATA CENTERS OF THE MOST IMPORTANT ISSUE DRIVING THEIR VOTE. CHRISTINA: RON I WANT TO ASK A MORE SERIOUS QUESTION BUT I'M DYING TO TALK ABOUT THIS FIRST. IN ADDITION TO THE PRESIDENT RUNNING ON TRUTH SOCIAL ABOUT HIS RALLY AND HOW EXCELLENT IT WAS THERE WAS A GIANT TRUTH SOCIAL WE HAVE IT HERE AND IT REQUIRED IS BUILDING A COUPLE DIFFERENT PAGES OF GRAPHICS. THIS IS THE PRESIDENT BEING EXTREMELY UPSET THAT ALLIED PUBLIC AND TOM COTTON DID NOT BACK IS DAYLIGHT SAVINGS PLAN BILL IN CONGRESS AND JUST GOING ON AND ON ABOUT WHY THIS IS IMPORTANT. I DON'T THINK WILL PUT THIS UP HE DID THEN TWEET TOM COTTON'S ACTUAL CELL PHONE NUMBER. WE CALLED IT, THE VOICEMAIL BOX IS OF COURSE FULL. IT GOES TO STRATEGY. THE PRESIDENT HAS A LOT OF ADVISORS AROUND HIM WHO WANT HIM TO DO SPECIFIC THINGS. THEY WANT TO STAY ON MESSAGE TALK BUT IT'S THE ECONOMY. HOW DIFFICULT IS IT TO GET THIS PRESIDENT TO FOCUS AND IS THE LACK OF STRATEGY GOING TO HURT HIM AS DEMOCRATS SEEM TO BE GETTING SOME MOMENTUM HERE? RON: THERE'S A FAMOUS QUOTE FROM THE NEW YORK TIMES PROFILE IN 1991 WITH GEORGE H. W. BUSH USED TO SAY IF YOU'RE SO SMART HOW COME YOU'RE NOT PRESIDENT. I THINK TRUMP FEELS THAT WAY. AND CERTAINLY IN 2016 HE DOESN'T REALLY HAVE TO LISTEN TO ANYONE. THE PROBLEM IS A PRESIDENT -- TRUMP IS CERTAINLY AS UNBOUND AS ANY PRESIDENT I THINK WE HAVE SEEN IN MODERN TIMES THAT'S NOT AN UNMITIGATED GOOD FOR HIM AND HIS PARTY. ONE THING THAT'S CONSISTENT FOR VOTERS ACROSS THE IDEOLOGICAL SPECTRUM WHETHER THEY LIKE TRUMP OR DON'T LIKE TRUMP AN OVERWHELMING MAJORITY OF AMERICANS DO NOT BELIEVE HE IS SUFFICIENTLY FOCUSED ON THE PROBLEM THEY ELECTED HIM TO SOLVE WHICH IS THEIR COST-OF-LIVING. TODAY THAT CBS YOUGOV POLL. 75% OF AMERICANS SAY HE IS NOT FOCUSED ENOUGH ON THE COST OF LIVING. HE SEEMS FOCUSED ON HIS OWN PERSONAL OBSESSIONS. TO ENRICHING HIMSELF WITH CRYPTO SCHEMES, THROUGH ATTACKING FELLOW REPUBLICAN SENATORS OVER THE DAYLIGHT SAVINGS BILL. SO I THINK LIKE ALL OF THIS KIND OF FILLS IN FOR MOST AMERICANS BUT TRUMP IS SIMPLY ON HIS OWN WAVELENGTH AND IS NOT SUFFICIENTLY WORRIED ABOUT THEIR PROBLEMS AND THAT IS A BIG HEADWIND FOR REPUBLICANS EVEN IN THE REDDEST OF STATES. THOSE NEW YORK TIMES POLES HE WAS AT 41% OR BELOW IN FIVE RED STATES WHERE HE WON 55% OF THE VOTE OR MORE. YOU DO THE MATH. A 14 POINT SHORTFALL BETWEEN THAT AND THE CURRENT APPROVAL PUTS A LOT OF STATES IN PLAY AND THAT'S EXACTLY WHAT WE ARE SEEING. DAVID: OFTENTIMES YOU DON'T TALK ABOUT ALASKA BUT YOU'VE BEEN FOCUSED ON IT GOING BACK TO THAT POLLING FROM THE NEW YORK TIMES. NEARLY THREE QUARTERS OF VOTERS SAID THE STATE ECONOMIC CONDITIONS WERE FAIR OR POOR. TELL US ABOUT THIS RACE BETWEEN MARY PELTOLA AND HER RACE AGAINST DAN S, NOT DAN J, SULLIVAN. KATE: ALASKA SELECT -- RON: ALASKA SELECTED FOR DEMOCRATIC SENATORS SINCE IT BECAME A STATE. ONLY ONE OF THOSE SINCE 1980. IT'S EXTRAORDINARY WE ARE DISCUSSING IT AT ALL. IT'S THE INDICATION OF WHAT WE ARE TALKING ABOUT HERE. THE ELECTION IS BEING FOUGHT OUT PRIMARILY IN RED TERRAIN. THERE WERE ONLY EIGHT REPUBLICANS EVEN AFTER -- ALMOST ALL OF BOTH PARTIES ARE FIGHTING OVER SEATS THAT VOTED FOR TRUMP. IN THE SENATE YOU KNOW SUSAN COLLINS-- SUSAN COLLINS IS THE ONLY REPUBLICAN IN A STATE VOTING FOR KAMALA HARRIS. THERE IS ENOUGH DISCONTENT THAT THESE PLACES ARE NOW WITHIN REACH. IF YOU ARE A DEMOCRAT, YOU HAVE TO WORRY THAT THE DNA IN A PLACE LIKE ALASKA IS PRETTY RED. AND YOU HAVE TO WORRY, OR OHIO EVEN, YOU HAVE TO WORRY ABOUT A REVERSION TO THE MEAN. BUT AS THE DAYS TICK BY ON THE CALENDAR AND IT DOESN'T HAPPEN, OBVIOUSLY THERE IS MORE CONCERN FOR DEMOCRATS. MARY PELTOLA IS A VERY UNUSUAL CANDIDATE. SHE MAY HAVE MORE CROSS PARTY APPEAL THAN ANYONE ON THE BALLOT THIS YEAR OTHER THAN SUSAN COLLINS IN MAINE. I THINK SHE WILL BE VERY HARD FOR THE REPUBLICANS TO OVERCOME IN THE FINAL WEEKS. CHRISTINA: YOU'VE WRITTEN ABOUT TRUMP'S FOREIGN POLICY AND HOW HIS FOREIGN POLICY AGENDA IS IMPACTING NOT ONLY REPUBLICANS NAMES ON THE BALLOT BUT VOTERS ARE WATCHING THIS TOO. WE ARE TOLD TIME AND TIME AGAIN, AMERICAN VOTERS DON'T VOTE BASED ON FOREIGN POLICY. BUT THIS TIME, FOREIGN POLICY IS MORE TIED INTO KITCHEN TABLE ISSUES THAN IT HAS BEEN IN THE PAST. HOW ARE VOTERS REACTING AND WHAT ARE YOU SEEING AROUND THIS CONVERSATION? >> 100%. I THINK THAT WE HAVE SEEN POLL AFTER POLL SHOWING THE MAJORITY OF AMERICANS ARE REALLY DISAPPROVING OF THE PRESIDENT'S HANDLING OF THE ECONOMY. AND THAT IS ALSO TIED TO HIS HANDLING OF THE WAR IN IRAN. I THINK FOREIGN POLICY IS DEFINITELY PLAYING A LARGER ROLE RIGHT NOW. I THINK THERE ARE PEOPLE WHO ARE VERY CONCERNED BECAUSE OF THE EFFECT THAT IT IS HAVING ON GAS PRICES, THE COST OF LIVING ANXIETIES. I THINK THIS IS SOMETHING THAT KEEPS COMING UP, BECAUSE THE PRESIDENT, BACK WHEN THE U.S. LAUNCHED THIS WAR IN FEBRUARY, SAID THIS WOULD BE A SHORT TERM, FOUR TO SIX WEEK EXCURSION. HE WAS LYING. NOW WE ARE SEVEN MONTHS INTO THIS WAR AND I THINK PEOPLE ARE FEELING THE EFFECTS OF IT. AND THERE ISN'T REALLY A CLEAR END. THERE HAVE BEEN NO DIPLOMATIC BREAKTHROUGHS. IT'S HARD TO SEE ANYTHING COMING AROUND THE CORNER WHEN IT COMES TO ANY KIND OF RESOLUTION TO THIS WAR. YOU ARE RIGHT. THIS IS SOMETHING THAT IS PLAYING A BIG ROLE IN THESE MIDTERM ELECTIONS. DAVID: I WANT TO ASK ABOUT WHAT DEMOCRATS DO IN THIS MOMENT. WE LOOK AT THE -- THE APPROVAL RATING FOR THE PRESIDENT, A WARNING SIGN FOR REPUBLICANS. YOU HAVE WRITTEN ABOUT THE CHALLENGE FOR DEMOCRATS, CONVERTING REPUBLICAN VOTERS TO BECOME DEMOCRATIC VOTERS. I WANT TO ASK YOU ABOUT THE DEGREE TO WHICH REPUBLICANS ARE CALCIFIED IN THEIR POSITION AND HOW DIFFICULT THAT WILL BE FOR DEMOCRATS AND WHAT IN YOUR ESTIMATION THAT TREATY SHOULD LOOK LIKE TO DRAW THEM OVER, TO DROP REPUBLICANS OVER IN LIGHT OF THE SATISFACTION WE'VE BEEN TALKING ABOUT ON SO MANY ISSUES. RON: THE PRESIDENT HAS BECOME THE SINGLE MOST IMPORTANT FACTOR IN THE OUTCOME OF THE MIDTERM ELECTION. IN THE FIRST -- IN 2020, 93%. EVERY DEMOCRATIC CANDIDATE EXCEPT FOR THE CANDIDATE RUNNING , SUSAN COLLINS IN 2020, EVERY DEMOCRATIC SENATE INCUMBENT OR CHALLENGER WON 89% OF VOTERS WHO DISAPPROVED OF TRUMP IN THE FIRST TERM. THEY ARE IN THE LOW 80'S, LOOKING AT GENERIC NATIONWIDE BALLOTS OR TESTS OR SENATE RACES. THE CHALLENGE REPUBLICANS HAVE IS TRUMP'S DISAPPROVAL HAS REACHED A POINT WHERE DEMOCRATS CAN WIN A LOT OF THE STATES, ONLY CAPTURING SOMEWHERE AROUND 83% TO 85% TO 86% OF PEOPLE WHO DISAPPROVE OF HIM, WHICH IS VERY MUCH WITHIN THE RANGE OF PRESIDENTS GOING ALL THE WAY BACK TO BILL CLINTON. GENERALLY 85% OF PEOPLE WHO DISAPPROVE OF A PRESIDENT VOTE FOR THE OTHER SIDE CANDIDATE. THE KEY FOR DEMOCRATS IS TO KEEP THE FOCUS ON THE ECONOMY AND NOT BE SUNK BY A CULTURE WAR ISSUES THAT HAVE A LOT OF RESIDENCE IN THE PLACES WE ARE TALKING ABOUT. THESE ARE PLACES WHERE REPUBLICAN CULTURE WAR ARGUMENTS HAVE A LOT OF BITE. BUT I THINK THE EVIDENCE IS PRETTY CLEAR THAT VOTERS, EVEN IF THEY AGREE WITH REPUBLICANS ON QUESTIONS LIKE WHETHER TRANSGENDER KIDS SHOULD BE PLAYING IN HIGH SCHOOL SPORTS, THEY ARE SIMPLY NOT A SALIENT -- AS SALIENT THIS YEAR AS THEY WERE IN 2024. THERE ARE PROBABLY PLACES WHERE THAT MAY REVIVE SOME REPUBLICANS BUT ULTIMATELY THEY NEED MORE OF AN ANSWER ON THE ECONOMY AND IT'S HARD TO SEE WHAT WOULD PRODUCE THAT LESS THAN A MONTH BEFORE THE ELECTION. DAVID: THANKS FOR YOUR TIME AS WELL. CHRISTINA: WITH OCTOBER COMES THE START OF A NEW SUPREME COURT TERM. WHAT'S ON THE DOCKET AND WHAT WE ARE HEARING FROM JUSTICE SAMUEL ALITO ABOUT THE FUTURE OF THE COURT. IT IS "BLOOMBERG THIS WEEKEND. " STAY WITH US. LISA: THANK YOU FOR JOINING US LIVE ON BLOOMBERG THIS WEEKEND. I AM LISA MATEO. PRESIDENT DONALD TRUMP HAS MADE IT OFFICIAL IN A SOCIAL MEDIA POST. HE ANNOUNCED THE FORMATION OF THE SUPER INTELLIGENCE FORCE. HE SAYS IT ENSURES AMERICA CONTINUES TO LEAD THE WORLD IN ARTIFICIAL INTELLIGENCE AND WILL PROTECT THE INTERESTS AND IMPROVE THE LIVES OF ALL AMERICANS. THE PRESIDENT SAID IT WOULD BE LED BY DIRECTOR OF NATIONAL INTELLIGENCE J CLAYTON AMONG OTHERS. THE PRESIDENT OF CORNELL IS SPEAKING OUT ABOUT THE ALLEGED GANG RAPE OF A STUDENT AT A FRATERNITY HOUSE IN 2024. IN A MORE THAN EIGHT MINUTE MESSAGE, THE PRESIDENT CALLED THE INCIDENT DEEPLY DISTURBING. >> MY HEART ACHES WHEN I THINK OF WHAT SHE EXPERIENCED. IT RAISES HEARTBREAKING AND TROUBLING ISSUES ABOUT SEXUAL ASSAULT, DEHUMANIZATION AND ASPECTS OF PARTY CULTURE, ALCOHOL AND DRUG USE. LISA: HE REAFFIRMED HIS COMMITMENT TO SUPPORTING AN INDEPENDENT REVIEW OF CORNELL'S HANDLING OF THE CASE AND SAID THE SCHOOL'S BOARD OF TRUSTEES WOULD ANNOUNCE DETAILS NEXT WEEK. HE ALSO EXPRESSED SUPPORT FOR THE NEW YORK GOVERNOR, KATHY HOCHUL'S DECISION TO TURN THE CASE OVER TO THE STATE ATTORNEY GENERAL AND COMMITTED CORNELL'S SUPPORT OF LEGISLATURE TO CHANGE NEW YORK SEXUAL ASSAULT LAWS. THE TENNESSEE PRISON CHIEF RESIGNS AFTER THE FAILED EXECUTION OF KRISTA PIKE. FRANK STRADA SAID STEPPING ASIDE IS IN THE BEST INTEREST OF THE STATE. A REVIEW IS BEING CONDUCTED INTO WHAT WENT WRONG IN THAT CASE. DAVID: TOMORROW, THE SUPREME COURT BEGINS ITS NEW TERM AND AS ALWAYS, THEY WILL BE DECIDING SOME BIG CASES. THIS TIME ON CLIMATE CHANGE, RELIGION, SEMI AUTOMATIC WEAPONS , JUST TO NAME A FEW. BOULDER COUNTY IS SUING SUNCOR ENERGY AND EXXON FOR CONTRIBUTE INTO CLIMATE CHANGE. CHRISTINA: YOU SPEND SOME TIME THERE. WITH US NOW IS OUR SUPREME COURT REPORTER, GREG. I KNOW WE ARE LOOKING FORWARD TO THIS NEW TERM. I WANT TO ASK YOU, THE EMERGENCY DOCKET HAS KIND OF JUST EXPLODED IN THE LAST YEAR. IS THE START OF THE NEW TERM AS SIGNIFICANT AS IT USED TO BE? IT ALMOST SEEMS LIKE THIS IS A PERPETUAL CYCLE WITH THESE CASES NEEDING TO BE DECIDED AT THE LAST MINUTE. GREG: THAT'S A REALLY GOOD QUESTION. WE'VE HAD SOME 40 APPLICATIONS FILED BY THE TRUMP ADMINISTRATION ALONE SINCE HE TOOK OFFICE. THOSE ARE INCREDIBLY IMPORTANT ISSUES. WE HAVE HAD SEVERAL OF THEM RESOLVED BY THE SUPREME COURT RECENTLY, INCLUDING A BIG -- CASE. THERE'S NO REASON TO THINK THIS IS GOING TO LET UP. WE HAVE OTHER ISSUES OUT THERE LIKE THE BALLROOM AND THE IRS AGREEMENT THAT THE PRESIDENT HAD . AND, YOU KNOW, -- DAVID: GREAT, LET'S TALK ABOUT THE SUN COURT CASE THAT CHRISTINA MENTIONED COMING OUT OF BOULDER, COLORADO. TELL US ABOUT WHAT'S AT STAKE IN THAT CASE. I KNOW JUSTICE SAMUEL ALITO WHO HAS A BOOK COMING OUT, RECUSED HIMSELF OF THOSE ARGUMENTS WITHOUT A LOT OF EXPLANATION AT LEAST IN THE BEGINNING. WHAT DO WE KNOW ABOUT THE RECUSAL AND WHAT'S AT STAKE? GREG: LET ME START WITH THE RECUSAL. I TALK WITH JUSTICE ALITO. HE SAID HE'S STEPPING OUT OF THE CASE BECAUSE OF STOCK HOLDINGS HIS WIFE HAS IN OTHER OIL COMPANIES. HE THOUGHT AS A MATTER OF PRUDENCE, HE SHOULD AT LEAST OVER THE POSSIBILITY OF A 4-4 SPLIT. LET ME TALK ABOUT WHAT THE CASE IS ABOUT. IT'S THE LATEST IN A SERIES OF CASES TRYING TO HOLD OIL AND GAS COMPANIES ACCOUNTABLE. [INDISCERNIBLE] WHERE THE SUPREME COURT SAID YOU CAN'T SUE UNDER WHAT'S KNOWN AS FEDERAL COMMON LAW. COMMON LAW IS A JUDGMENT OF THE LAW. THIS IS A CASE WHERE A BOULDER CITY AND BOULDER COUNTY ARE TRYING TO SUE UNDER STATE LAW. THEY ARE SAYING THIS IS LIKE ANY CASE WHERE YOU CAN SUPER THANKS. LIKE NUISANCE AND TRESPASS'S OR TRADITIONAL STATE LAW CLAIMS. THE QUESTION IN THE CASE, EXXON AND SUNCOR ARE ARGUING YOU CAN'T DO THAT BECAUSE FEDERAL LAW CONSTITUTION PREAMPS THAT COME UP PREVENTS THAT STUDENT -- LAWSUIT FROM GOING FORWARD. WHEN THE STATES JOINED THE UNION, THEY GAVE UP CERTAIN RIGHTS INCLUDING THE RIGHTS TO DEAL WITH INTERSTATE AND FRANKLY INTERNATIONAL MATTERS. THAT'S THE CORE QUESTION. IF THE SUPREME COURT DOES DIVIDE 4-4, THE LAWSUIT WILL GO FORWARD WITHOUT SETTING A NATIONWIDE PRECEDENT. THAT WOULD BE GOOD NEWS FOR THOSE TRYING TO SUE THE OIL COMPANIES. CHRISTINA: THERE'S BEEN A LOT OF CONVERSATION OVER THE LAST YEAR OR TWO ABOUT TERM LIMITS ON THE SUPREME COURT, RULES FOR RECUSAL AND THINGS LIKE THAT. ENFORCEMENT OF ETHICS LAWS. HAS THERE BEEN ANY TRACTION ON ANY OF THAT? IS THERE ANY INDICATION THAT SOMEONE LIMITS OR RULES FOR SOME OF THESE SUPREME COURT JUSTICES AND HOW THEY DEAL WITH CONFLICT OF INTEREST IN SOME OF THESE CASES WILL GET CODIFIED AT ANY TIME? GREG: THERE'S NO MOVEMENT YET BUT WATCH THIS SPACE BECAUSE THERE'S AN ELECTION COMING UP. WE WILL HAVE ANOTHER ELECTION TWO YEARS FROM NOW. AND IT'S THE DEMOCRATS WHO ARE DOING MOST OF THE CALLING FOR THOSE SORTS OF CHANGES, BECAUSE OF THE [INDISCERNIBLE] SEVERAL PRESIDENTIAL CANDIDATES OR POTENTIAL PRESIDENTIAL CANDIDATES, KAMALA HARRIS AND PETE BUTTIGIEG ARE SAYING WE NEED TO IMPOSE TERM LIMITS OR ADD SEATS TO THE COURT. WHILE POLITICALLY EXPLOSIVE, CONGRESS COULD DO THAT ON ITS OWN. EVERYBODY AGREES THAT THE SUPREME COURT DOES NOT HAVE TO BE NINE PEOPLE. THAT WOULD REQUIRE A PRESIDENT TO SIGN THAT. THERE'S GOING TO BE, IF DEMOCRATS TAKE OVER CONGRESS AS IT SEEMS POSSIBLE IN NOVEMBER, -- DAVID: YOU SPOKE TO JUSTICE ALITO. HE WAS SPEAKING TO JAN CRAWFORD OF CBS. WE HAVE A BIT OF SOUND OF HIM TALKING ABOUT THE PROSPECT OF HIM RETIRING AND THE CHANGE THAT MIGHT PORTEND FOR THE COURT. LET'S PLAY A LITTLE BIT OF THAT AND WE WILL TALK TO YOU ON THE OTHER SIDE. >> YOU'LL BE KIND OF RECONSIDERING THIS PROBABLY, EVERY YEAR. >> YEAH, I THINK I HAVE TWO. >> WHY DOES THAT NOT RISK ALL OF THE WORK YOU'VE DONE AT THE COURT? >> I THINK IT'S TOO HARD TO PREDICT. IT'S TOO HARD TO PREDICT HOW, FOR ANYBODY, PARTICULARLY WHEN YOU REACH A CERTAIN AGE, WHAT YOUR SITUATION WILL BE A YEAR FROM NOW, TWO YEARS FROM NOW AND SO FORTH. IT'S TOO HARD TO PREDICT WHAT THE POLITICAL SITUATION WILL BE AND WHAT ANY PRESIDENT WILL DO WITH RESPECT TO A REPLACEMENT. DAVID: JAN CRAWFORD MENTIONING THE PARALLEL TO JUSTICE GINSBURG. THERE WAS A REPORT THAT WAS RETRACTED SHORTLY AFTER INDICATING THAT JUSTICE ALITO WAS INTENDING TO STEP DOWN AT THE END OF THE LAST TERM. HOW HAS THE THINKING CHANGED ON THIS? WHAT STOOD OUT TO YOU FROM THE COMMENTS HE HAS MADE ABOUT WHEN HE INTENDS TO HANG UP HIS HAT AT THE COURT? GREG: IN THE NONJUDICIAL SPHERE, THAT IS PASSED WHAT PEOPLE THINK OF AS A TYPICAL RETIREMENT AGE. NO SIGNS HE IS SLOWING DOWN OR UNABLE TO DO THE JOB. SO, IT'S NOT SURPRISING THAT HE'S SPEAKING FRANKLY. THE POLITICAL DYNAMIC IS REALLY THERE. IF REPUBLICANS TAKE OVER AND KEEP THE SENATE IN NOVEMBER, I THINK WE WILL ALL BE TALKING ABOUT THIS AGAIN AT THE END OF THE TERM IN JUNE. WILL JUSTICE ALITO OR PERHAPS JUSTICE THOMAS RETIRE SO PRESIDENT CAN NOMINATE A SUCCESSOR AND BE CONFIRMED BY THE REPUBLICAN -- DO THINGS A DEMOCRATIC-CONTROLLED SENATE WOULD CONFIRM A CONSERVATIVE NOMINEE BY DONALD TRUMP. SO, THAT IS GOING TO BE SOMETHING THAT JUSTICE ALITO OR JUSTICE THOMAS IS GOING TO HAVE TO THINK REAL HARD ABOUT. WHEN I RETIRE, THERE MAY NOT BE A SUCCESSOR WHO CAN BE CONFIRMED. DAVID: THAT IS GREG STOHR, OUR SUPREME COURT REPORTER. HIS PEACE COMES OUT LATER. LOOK FOR THAT AT BLOOMBERG.COM AND THE BLOOMBERG TERMINAL. GREG, GREAT TO SPEAK WITH YOU. JUST TO REITERATE A FONT OF CASES COMING TO THE COURT BEFORE THIS TERM, THERE IS ANOTHER CASE COMING FROM LITTLETON, COLORADO. ST. MARY'S CATHOLIC PARISH WANTS TO GET STATE FUNDING FOR PRE-K BUT THEY DON'T WANT TO ADMIT KIDS WHO ARE LGBTQ. CHRISTINA: THAT'S GOING TO BE AN ISSUE OVER AND OVER AGAIN. ESPECIALLY AS MORE STATES ARE CONSIDERING VOUCHERS FOR PRIVATE SCHOOLS, WHETHER THEY CAN GO TO RELIGIOUSLY AFFILIATED SCHOOLS, BECAUSE IT IS PUBLIC FUNDS. WITH A CONSERVATIVE COURT, THERE'S MORE LATITUDE THERE, WHICH IS WHY THEY ARE TRYING TO GET THOSE CASES IN FRONT OF THEM AS FAST AS THEY CAN. DAVID: WHEN WE COME BACK, THE BLOOMBERG WEEKEND BOOKMARK. SOME OF OUR FAVORITE STORIES OF THE WEEK THAT WE ARE GOING TO SHARE WITH EACH OTHER AND WITH YOU. STAY WITH US. IT'S "BLOOMBERG THIS WEEKEND." ♪ DAVID: WELCOME BACK TO BLOOMBERG THIS WEEKEND. NOW TO A NEW SEGMENT, BOOKMARKED. A COUPLE OF STORIES WE ARE READING THIS WEEKEND. INSPIRED BY BTW. LISA: WE ALL GET TO PICK ONE. I WILL START IT OFF. HAVE YOU GUYS SEEN THE TRAILER FOR DIGGER? DAVID: I HAVE. LISA: IT'S A TOM CRUISE MOVIE. HE PLACED A BILLIONAIRE OIL TYCOON AND GETS INTO AN ENVIRONMENTAL DISASTER. IT ONLY MADE $8 MILLION SO FAR. THE NEW YORK TIMES SAID IT'S ON TRACK TO LOSE ABOUT 125 MILLION DOLLARS. CRITICS HAVE BEEN BASHING IT. IT'S A DIFFERENT LOOK FOR TOM CRUISE TOTALLY. YOU ARE USED TO HIM IN AN ACTION ROLE. NOW HE'S IN A FAT SUIT AND USING PROSTHETICS. IT'S A DARK COMEDY, A DIFFERENT ROLE FOR HIM. IT WAS BIG. THEY SPENT 100 MILLION DOLLARS IN MARKETING. TOM CRUISE ONLY FLIES PRIVATE SO THAT GOES INTO THE BUDGET TOO. THERE'S A LOT BEHIND IT. WARNER BROS., THE MOVIE STUDIO, HAS NOT BEEN DOING SO GREAT AS FAR AS THEIR MOVIES. NONE OF THEM REACHED ABOUT 100 MILLION DOLLARS SO FAR. IT'S NOT THE BEST. I DON'T KNOW IF I'M GOING TO SEE IT EITHER. DAVID: IT'S THE LAST BEFORE THE BIG MERGER TOO, RIGHT? LISA: YES. IT'S THE LAST BEFORE THE PARAMOUNT MERGER. PEOPLE HAVE NOT BEEN TALKING HIGHLY ABOUT IT. NOT EVEN THE AUDIENCE, FORGET THE CRITICS. CHRISTINA: I HAVE A FRIEND WHO SAW IT AND POSTED GUYS, IT'S NOT THAT BAD, I KIND OF ENJOYED IT. EVERYBODY NEEDS TO CALM DOWN. PEOPLE DON'T LIKE IT WHEN YOU ARE TRYING TOO HARD FOR AN OSCAR AND IT SEEMS LIKE HE'S TRYING -- YOU CAN'T JUMP OFF BUILDINGS FOREVER AND YOU HAVE TO FIND A SECOND ACT AND MAYBE HE NEEDS TO BE MORE THOUGHTFUL. LISA: I MAY WAIT FOR IT TO STREAM. CHRISTINA: I'M GOING TO WAIT FOR IT TO STREAM. I'M NOT GOING TO PAY FOR THIS. WHEN WAS THE LAST TIME EITHER OF YOU WENT TO A DINNER PARTY? DAVID: LONG TIME. LISA: IT'S BEEN A WHILE. DO HOLIDAYS COUNT? CHRISTINA: NO. I'M HAVING FRIENDS OVER, NO OCCASION, WE ARE HAVING A DINNER PARTY. DAVID: DO YOU DO THIS? CHRISTINA: I USED TO DO IT QUITE A LOT IN MY 20'S. THERE IS THE DEATH OF THE DINNER PARTY, TALKING ABOUT HOW PEOPLE DON'T DO IT ANYMORE. I WENT TO ONE FOR THE FIRST TIME IN YEARS, SINCE BEFORE THE PANDEMIC. I USED TO DO THEM ALL THE TIME AND WE DON'T DO IT ANYMORE. I CAN COOK. THE SHARE OF AMERICANS WHO DID ACTIVITIES 12 TIMES IN THE PAST YEAR IS GOING DOWN. THAT INCLUDES CHURCH, DINNER PARTIES AND PICNICS. AND THE SHARE OF PEOPLE HAVING DINNER PARTIES IS DISAPPEARING. IT IS SUCH AN ESSENTIAL PART OF WHO WE ARE, MAKING FRIENDS, IT'S A CONCERN. DAVID: I FIND THEM STRESSFUL, IN TERMS OF THE PREPARATION AND THE EXECUTION. THEN YOU ARE HAVING TO DO ALL OF THIS STUFF. CHRISTINA: THAT IS TRUE. LISA: I DON'T KNOW. I MEAN, I LOVE HOSTING AND THINGS LIKE THAT, BUT YOU DO GET THE MIX. YOU ARE NOT IN THE MIX OF EVERYONE ELSE'S CONVERSATIONS. TRUE, CATER IT. DAVID: ORDER FROM A RESTAURANT. CHRISTINA: WE JUST STAYED FOREVER. THAT'S THE OTHER THING, PEOPLE DO STAY FOREVER. DAVID: THAT ALSO MAKES ME ANXIOUS. CHRISTINA: AND WHO CLEANS THE DISHES? I ALWAYS DO THEM THE NEXT MORNING. DAVID: IT'S ABOUT WHO THE AUDIENCE IS FOR TOYS IN 2020 SIX. SOMETHING IS HAPPENING CALLED THE GREAT REGRESSION. A LOT OF ADULTS, PEOPLE OUR AGE, I'M NOW -- ARE NOW BECOMING THE MAIN MARKET FOR BUYING TOYS. IT'S EVERYTHING FROM THESE KIND OF POCKMARKED STATUETTES TO STUFFED ANIMALS, TO BUILD A BEAR, THEY ARE BUILDING BEARS. THE CENTERPIECE IS A GROUP OF WOMEN IN THEIR 50'S AND 60'S WHO GO TO MANHATTAN AND THEY EACH DESIGN A BEAR FOR THEMSELVES. THE CEO OF BUILD A BEAR SAYS IT IS A $50 BILLION BUSINESS. NOW, ADULTS PLAY A CRUCIAL ROLE HERE. AND IT'S GIVEN IT A SECOND WIND. YOU ARE A SKEPTICAL PARTY. LISA: WE HAVE THE BILL TO BEARS. BUT NOT FOR ME. I WOULDN'T GET ONE FOR ME. DAVID: I MIGHT GET ONE FOR YOU. CHRISTINA: I KNOW WHAT EVERYONE IS GETTING FOR CHRISTMAS. THIS IS NOT COLLECTORS, NECESSARILY. DAVID: IT'S COLLECTORS. I THINK IT IS COLLECTORS. BUT IT'S PART OF INFUSING FUN INTO YOUR LIFE. ACQUIRING POP FIGURES, YOU CAN GET A BUNCH OF THEM AND THERE'S AN INFINITE AMOUNT THEY CAN MAKE. AND THERE IS SCARCITY AND RARITY AND ALL OF THAT. I'M GOING TO PUT MY ARMCHAIR PSYCHOLOGY ON IT AND SAY I THINK IT'S AN OUTLET FOR FUN. CHRISTINA: I DON'T HAVE A HUGE PROBLEM WITH IT. UNLESS YOU ARE SPENDING A HUGE AMOUNT OF YOUR FAMILY'S MONEY ON IT. DAVID: MAYBE YOU ARE, LIKE BEANIE BABIES. THAT WAS AN INVESTMENT BACK IN THE DAY. CHRISTINA: I THINK THAT'S FINE. IF IT'S SOMETHING THAT BRINGS YOU JOY, WHATEVER, GREAT. DAVID: THE LEGOS ARE INSANE. NO CHILD OF MINE WOULD BE ABLE TO ASSEMBLE THESE 3000 PIECE LEGO CREATIONS. CHRISTINA: THEY DO LEGO FLOWERS. YOU CAN GET A LEGO BOUQUET. SOME WOMAN WAS UPSET THAT DAVID BROUGHT A LEGO BOUQUET BOX. THAT WOULD BE THE BEST DAY EVER. DAVID: ADULTS CAN ACTUALLY PAY FOR TOYS. IT'S LIKE KIDS ARE HAVING TO BEG THEIR PARENTS FOR IT. BEING ABLE TO TAP INTO THAT MARKET. CHRISTINA: