Putin Says Russia Ready for Talks

>> LIVE FROM WASHINGTON, D.C., THIS IS BALANCE OF POWER WITH JOE MATHIEU AND KAILEY LEINZ. JOE: DAY THREE OF THE RED STATE ROADSHOW. PRESIDENT TRUMP HEADS FOR SOUTH CAROLINA TO STUMP FOR HIS HAND-PICKED CANDIDATE FOR SENATE. I'M JOE MATHIEU ALONGSIDE KAILEY LEINZ. THAT CANDIDATE IS DARLINE GRAHAM , AND THAT RACE WAS JUST RE-RATED BY THE COOK POLITICAL REPORT. KAILEY: AFTER BEING RE-RATED BY THE CRYSTAL BALL AT THE UNIVERSITY OF VIRGINIA LAST WEEK. BOTH OF THOSE RATINGS MOVING AWAY FROM DARLINE GRAHAM, SAYING IT IS LESS LIKELY THIS IS A REPUBLICAN VICTORY. SHE WAS SUPPOSED TO FILL OUT A TEMPORARY BASIS THE SEAT OF HER LATE BROTHER. SHE IS NOW RUNNING FOR ELECTION TO A FULL TERM. THE VISIT IS COMPLICATED BY THE LEGACY OF HER BROTHER BEING A HAWK WHEN IT COMES TO RUSSIA GIVEN SOME OF THE PRESIDENT'S RECENT MOVES. JOE: ONE CAN ONLY IMAGINE WHAT LINDSEY GRAHAM WOULD HAVE THOUGHT TO HEAR STEVE WITKOFF REFER TO VLADIMIR PUTIN AS A GREAT HUMANITARIAN. THERE IS A NEW PEACE PROPOSAL BY THE U.S.. UNCLEAR WHAT IS IN IT BUT THEY ARE HAVING TALKS IN ST. PETERSBURG. THAT IS THE BACKDROP AS WE CONSIDER DIESEL PRICES AND ALL THE OTHER THINGS THAT HAVE CHALLENGED THE PRESIDENT. KAILEY: STEVE WITKOFF SAYING ON SOCIAL MEDIA THAT TRILATERAL TALKS BETWEEN THE U.S., RUSSIA AND UKRAINE WILL CONTINUE. THE QUESTION IS WHETHER OR NOT THEY WILL YIELD ANYTHING AS PRESIDENT TRUMP IS CLEARLY PUTTING ON UKRAINE SPECIFICALLY TO COME TO AN AGREEMENT. WE WILL BE HEARING MORE FROM HIM ON THE RALLY STAGE TONIGHT, A LOT ON THE DEBATE STAGE AS WELL IN SOME OTHER RACES. MICHIGAN AND KANSAS THE ONES THE WATCH. JOE: LOOKING FORWARD TO SEEING. MARSHALL. HE WILL THROW DOWN WITH THE PASTOR. IT'LL BE MANY AMERICANS' FIRST LOOK AT THE COMPETITION. KAILEY: WE WILL HAVE THAT COVERED FOR YOU BUT AS ALWAYS WE COVER THE MARKETS AND WE DO THAT WITH CHARLIE PELLETT. CHARLIE: THANK YOU VERY MUCH. WE HAVE THE DOW, THE S&P AND THE NASDAQ ALL PUSHING HIGHER. SPACEX EARNINGS REKINDLING BETS ON ARTIFICIAL INTELLIGENCE. THE S&P UP .6%. THE DOW UP .4%. NASDAQ UP 1.2%. THE RUSSELL 2000 INDEX AND SMALL-CAP SHARES, UP .5%. THE TWO-YEAR AT 4.7%. SPOT GOLD IS UP .1% WTI NOW AT $96 PER BARREL. A BARREL OF BRENT, 108. BITCOIN BACK ABOVE $84,000. UP NOW BY 2.1%. ELON MUSK IS ENDORSING THE PROSPECT OF COMBINING SPACEX WITH TESLA, UNITING ASSETS FROM ELECTRIC CARS TO AI DATA CENTERS WITH SATELLITE CAPABILITIES. SPACEX EARNINGS UP BY 9.9%. META-PLATFORMS UP BY 2.2%. STOCKS HIGHER, THE S&P HIGHER POINT 6%. THAT IS THE BLOOMBERG BUSINESS FLASH. KAILEY: CHARLIE PELLETT WATCHING THE MARKETS FOR US. EARNINGS SEASON IN FULL SWING. CAMPAIGN SEASON IS IN FULL SWING , AND ITS FINAL STAGES AS WE ARE 13 DAYS OUT FROM THE MIDTERM ELECTIONS. PRESIDENT TRUMP CONTINUING HIS SWING TO STATES ACROSS THE COUNTRY, HAVING JUST BEEN IN NORTH CAROLINA YESTERDAY. HE IS IN SOUTH CAROLINA THIS EVENING TO RALLY ON BEHALF OF DARLINE GRAHAM. WHO WAS IN A PRIMARY TO RUN FOR THAT IN THE GENERAL ELECTION. IT WAS BACK IN AUGUST WHEN PRESIDENT TRUMP HAD TO MAKE A TRIP TO SOUTH CAROLINA IN SUPPORT OF DARLINE GRAHAM. THAT WAS THE FIRST INSTANCE IN WHICH WE HEARD HIM ASK THE AUDIENCE TO PRETEND HE WAS ON THE BALLOT. JOE: IS THAT TRUE? GOOD RECALL. KAILEY: NOW OF COURSE IN THE GENERAL ELECTION, IT IS LOOKING LIKE THIS PREVIOUSLY SEEN SAFELY RED SEAT IS LOOKING LESS SAFE AS WE GET CLOSER TO ELECTION. JOE: THAT IS TRUE AS WE HAVE NOTED OVER THE PAST COUPLE OF DAYS. THE COOK POLITICAL REPORT FOLLOWING IN THE FOOTSTEPS OF THE CRYSTAL BALL, RE-RATING THAT RACE IN FAVOR OF DEMOCRATS. AS THE PRESIDENT ARRIVES, THIS IS ANOTHER STEEP HILL, AND IT IS WHERE WE START WITH OUR BLOOMBERG NEWS WHITE HOUSE CORRESPONDENT, CATHERINE LUCY. THE RED STATE ROADSHOW IS WHAT WE'VE BEEN CALLING IT BECAUSE IT IS, AND HE WILL BE ON STAGE WITH LINDSEY GRAHAM'S SISTER, EVEN AS WE DEBATE LOWERING SANCTIONS ON RUSSIA. THE CROSSCURRENTS ARE TOO MUCH. CATHERINE: THEY THINK HE CAN, OR THEY WOULDN'T HAVE SENT HIM. IT IS PRETTY ASTOUNDING WHEN YOU LOOK AT THE MAP, HOW THIS IS PLAYING OUT IN THE FINAL DAYS. I DON'T THINK ANYONE AT THE BEGINNING OF THE YEAR OR EVEN A FEW MONTHS AGO THOUGHT THEY WERE ON DEFENSE OR EVEN LOOKING TO SHORE UP WHAT ARE PARTICULAR -- WHAT ARE TYPICALLY VERY RED STATES. HE'S IN SOUTH CAROLINA, BUT THEY ARE MAKING TRIPS TO KANSAS, POURING ENORMOUS AMOUNTS OF MONEY INTO TEXAS. A LOT OF REPUBLICANS HAVE DESCRIBED TO ME WHAT THEY THOUGHT OF AS A REDWALL. -- SUSAN COLLINS, BUT ALSO OHIO, IOWA AND ALASKA WHICH ARE STATES TRUMP WON TWO YEARS AGO. IT HAS MOVED SO QUICKLY AND IT SEEMS TO BE JUST SPILLING OVER INTO NEW LOCATIONS. KAILEY: TALK ABOUT THE MESSAGE PRESIDENT TRUMP IS BRINGING WHEN HE GOES TO THE STATES. WHEN HE WAS IN NORTH CAROLINA LAST NIGHT, HE SUGGESTED ROY COOPER IS GOING TO BE THE SENATOR EVEN THOUGH HE IS THE DEMOCRAT NOMINEE. HE SPENT TIME TALKING ABOUT JOHN HUGHES DID, THE NOMINEE IN OHIO. CATHERINE: HE REALLY LIKES PHYSICAL ATTRIBUTES. ONCE HE LANDS ON A LINE OR A RIFF THAT HE LIKES, HE TENDS TO KEEP RETURNING TO IT. HE HAS RELATIVELY COME BACK TO THIS VOTE LIKE I AM ON THE BALLOT IDEA. IF YOU TALK TO PEOPLE AROUND HIM AND PEOPLE WORKING THESE CAMPAIGNS, THEY DO THINK ONE THING THEY HAVE TO DO BY ELECTION DAY IS GET TRUMP VOTERS OUT. WE KNOW HE BRINGS IN A LOT OF PEOPLE WHO DON'T ALWAYS VOTE. THEY'RE THINKING IS HE CAN GET SOME OF THESE UNDERPERFORMING LOWER INTENSITY VOTERS TO SHOW UP. BUT HIS RALLIES, THEY ARE COLORFUL AND THEY TEND TO MEANDER THROUGH A LOT OF MESSAGES BEYOND VOTE LIKE I AM ON THE BALLOT. THE LOOKS OF THE CANDIDATES, INSULTS AT A RANGE OF PEOPLE, DISCUSSIONS OF HIS BALLROOM. HE TENDS TO GO ALL OVER THE PLACE AND RUN 90 MINUTES TO TWO HOURS AT THESE EVENTS. JOE: MAYBE HE WILL GET INTO THE SWIMMING POOL. I WANT TO ASK ABOUT THIS. THE NEW YORK TIMES, I DON'T KNOW HOW IT AT TIMES WE'VE HAD TO WRITE THIS STORY OVER VARIOUS ADMINISTRATIONS, SUGGESTING HE MIGHT WANT TO CLOSE THE BRIEFING ROOM, TAKE THE PRESS OUT. BRING IT BACK TO ITS GLORY OF 1930 THREE, WHEN FDR HAD A SWIMMING POOL IN THAT ROOM. IF YOU ARE WITH US ON BLOOMBERG TV, LOOK AT THAT. THE WINDOWS ACROSS THE TOP, THAT IS WHERE CATHERINE WORKS EVERY DAY. AS SOMEONE WHO HAS DRAWN THE FIRE OF THIS PRESIDENT, AND HE SEEMED REALLY ANGRY AT THAT REPORTER. HE WAS BARKING, HE SHOWED HIS TEETH A COUPLE TIMES. IS THIS NEXT? CATHERINE: WE CAN'T REALLY PREDICT, BUT WHEN HE TALKS ABOUT THESE THINGS PUBLICLY, THEY ARE ON HIS MIND. WE KNOW THAT THE TIMES HAVE DONE GOOD REPORTING, HE HAS TALKED ABOUT THIS PRIVATELY. IT IS ALSO SOMETHING HE'S TALKED ABOUT ON AND OFF SINCE HIS FIRST TERM. GENERALLY, PEOPLE HAVE TALKED HIM OUT OF IT. I THINK LOTS OF PEOPLE WOULD ARGUE AND EVIL PEOPLE AROUND HIM, HAVING THE PRESS IN THE BUILDING THE WAY WE DO, SPEAKS TO THE FREEDOM OF THE PRESS AND THE IMPORTANCE E OF THE PRESS IN OUR DEMOCRACY. CERTAINLY IT IS ON HIS MIND AND WE HAVE SEEN THAT HE HAS TAKEN A MORE AGGRESSIVE APPROACH TO MEDIA THIS TERM AND THAT IS DEFINITELY TRUE. KAILEY: AS EVIDENCED BY THE ATTEMPT TO BAN CNN AND THE ONGOING LITIGATION ABOUT THAT. WE APPRECIATE YOU JOINING US. I BELIEVE CNN IS THE POOL TODAY. ARE THEY GOING TO GET TO TRAVEL TO SOUTH CAROLINA? JOE: THEY ARE STILL IN THE COURT. WE WON'T SEE THEM TONIGHT? I DON'T KNOW. KAILEY: AS WE CONSIDER THE TRAVEL TO SOUTH CAROLINA, WE ASSEMBLE OUR POLITICAL PANEL. JEANNE SHEEHAN ZAINO IS WITH US, BLOOMBERG POLITICS CONTRIBUTOR AND DEMOCRATIC ANALYSIS. JOINED BY RAY PUBLIC AND STARTED JUST KATIE FROST, POLITICAL DIRECTOR AND -- JOINED BY REPUBLICAN STRATEGIST KATIE FROST. TRUMP HAS MADE TRACKS -- TRUCKS TO SOUTH CAROLINA ON BEHALF OF DARLINE GRAHAM BEFORE. HE WAS SUCCESSFUL IN CARRYING HER THROUGH THE PRIMARY PROCESS. CAN HE ALSO CARRY HER THROUGH THIS GENERAL ELECTION? HOW MUCH DOES HE AID HER CAUSE? KATIE: I EXPECT HER TO WIN AT THE END OF THE DAY, BUT SHE IS SOMEONE WHO IS RELATIVELY UNKNOWN TO SOUTH CAROLINA VOTERS, SO THEY HAVE TO PUT A LITTLE MORE EFFORT BEHIND HER, TO GET HER OUT IN FRONT OF THOSE FOLKS. THEY VOTED FOR LINDSEY GRAHAM FOR YEARS, BUT DARLINE GRAHAM, DIFFERENT GRAM BUT WE WILL GO TO -- GET OUT THERE AND VOTE FOR HER. THE REAL PERSON PRESIDENT TRUMP SHOULD BE FOCUSING ON IS AMY ANDREWS. SHE IS SOMEONE WHOSE VIEWS ARE NOT ALIGNED WITH SOUTH CAROLINA VOTERS. BUT THEY ARE JUST TALKING ABOUT SUPPORTING DARLENE AND NOT MAKING THE CASE AGAINST ANNIE ANDREWS. ALL OF HER ADS MISREPRESENTING HER ACTUAL RECORD GO UNANSWERED. THAT'S GOING TO BE A PROBLEM. DARLINE GRAHAM IS A NICE LADY, BUT SOMEONE WHO PEOPLE THOUGHT WAS JUST GOING TO FILL OUT THE REMAINDER OF HER BROTHER TERM AS A PLACEHOLDER. NOW SHE IS TRYING TO RUN FOR AN ENTIRE SIX-YEAR TERM. THAT IS SOMETHING THAT IS A DIFFERENT CALCULATION. ULTIMATELY I BELIEVE DARLENE IS GOING TO WIN, BUT IT WILL TAKE MORE EFFORT THAN SOMEONE WHO HAD GONE THROUGH AN ENTIRE CYCLE. JOE: WHERE IS YOUR HEAD ON THIS PARTICULAR RACE, KNOWING THAT THE PRESIDENT LAST EVENING IN NORTH CAROLINA SPENT MORE TIME TALKING ABOUT THE SENATE CANDIDATE IN OHIO, AND BEING ON THE ROAD EVERY DAY, HE'S KIND OF DEVELOPED A NEW SPEECH FOR THE CAMPAIGN TRAIL, EVEN THOUGH HE IS NOT RUNNING. BUT IS IT HELPING ON A LOCAL LEVEL? JEANNE: YOU LOOK AT THE POLLS, IT DOES NOT SEEM TO BE. HIS CLOSING MESSAGE IS A COMBINATION OF COMPLIMENTS OF MEN'S BODIES, AND OPRAH STYLE GIVEAWAYS. IF WE WIN, YOU GET THIS, YOU GET THIS. VERY LITTLE FOCUS ON THE INFLATION, THE COST OF LIVING, GAS, THE LIST GOES ON. WHEN THE NUMBERS ARE THIS BAD, HE DOESN'T HAVE A LOT TO OFFER, SO THIS IS WHAT HE IS DOING. IT IS CLEARLY A FINAL TWO WEEK PUSH TO GET THE BASE OUT, BUT THE PROBLEM THEY HAVE IS THE POLLS ARE SHOWING THAT THERE ARE CRACKS IN HIS BASE, ALMOST FOR THE FIRST TIME. YOU LOOK AT THAT WASHINGTON POST POLL OUT THE OTHER DAY. THEY DO AN INTERESTING SORT OF DIVISION AND CROSS TABS BETWEEN REPUBLICANS WHO ARE REALLY STRONG MAGA STYLE REPUBLICANS, AND THOSE WHO ARE NOT REALLY CRAZY ABOUT IT. HE HAS LOST SO MUCH SUPPORT AMONGST THAT LATTER GROUP. THEY HAVE ABOUT HALF OF THEM DISAPPROVING NOW. THOSE ARE VERY BAD NUMBERS. SO THEY ARE TRYING TO MAKE THIS BASS PLAYER, TRYING TO GET HIM OUT THERE TELLING THOSE FOLKS TO HOLD THEIR NOSE AND VOTE. THEY MIGHT, IN A PLACE LIKE SOUTH CAROLINA. IT WOULD BE STUNNING GIVEN WHAT I READ STATE THAT IS IF GRAHAM DOES NOT PULL THROUGH, BUT THE FACT THAT THEY ARE ON THE DEFENSIVE AND SPENDING TIME AND MONEY SAYS AN AWFUL LOT ABOUT WHERE THE GOP IS WITH THIS POINT. KAILEY: AS JEANNIE REFERS TO THE NUMBERS, IF WE POINT TO THE NEWEST POLL WHICH FINDS THE PRESIDENT'S APPROVAL RATING FALLING THREE POINTS SINCE THE SEPTEMBER POLL, TO 34% AMONG REGISTERED VOTERS, THE TIMES DESCRIBES THAT AS HAVING FALLEN THROUGH HIS LONG SUPPOSED FLOOR OF SUPPORT. THE SAME POLL FINDS DEMOCRATS ARE FAVORED ON THE GENERIC BALLOT NATIONALLY BY 11 PERCENTAGE POINTS, 52-41. EVEN IF POLLS LIKE THAT ARE WRONG TO A CERTAIN DEGREE, WAS AN 11 POINT ADVANTAGE -- MIGHT THAT INDICATE SOMETHING DIRECTIONALLY EVEN IF THE MARGIN NOT -- IS NOT QUITE AS LARGE AS THE POLLING IS BEARING OUT? KATIE: I REFERENCE TO THIS EARLIER IN THE PROGRAM, THE PARTY THAT IS OUT OF POWER IN THE WHITE HOUSE TYPICALLY PERFORMS BETTER IN MIDTERMS. THEY ARE TRYING TO COUNTERACT WHAT THEY SEE AS POLICIES THAT THEY DISAGREE WITH. POLLING NOTORIOUSLY DOES NOT CAPTURE REPUBLICAN SENTIMENT VERY WELL. YOU ARE PROBABLY SEEING A LOT OF NEW POLLSTERS JUST POPPING UP, RELEASING NUMBERS AND THEN IT TURNS OUT THEY'VE ALL BEEN FABRICATED. THAT JUST HAPPENED IN MICHIGAN. THERE WAS A PRIMARY POLL FOR THE MICHIGAN SENATE RACE -- ENDED UP DROPPING OUT OF THE RACE AND SHE CUT A STATEMENT TODAY SAYING ONCE THAT POLL CAME OUT, HER FUNDRAISING DRIED UP, HER VOLUNTEERS WERE DISCOURAGED AND CONTRIBUTED TO HER DECISION TO DROP OUT OF THAT PRIMARY. IT TURNS OUT THAT POLL WAS ENTIRELY FABRICATED. WE ARE GOING TO HAVE TO FORMER CRITICAL EYE WITH DATA AND MAKING SURE IT IS CAPTURING THE SENTIMENT OF VOTERS. I DO BELIEVE, YES, THERE IS WIND AT THE BACK OF DEMOCRATS IN CERTAIN STATES. BUT LIKE I SAID EARLIER, DON'T WRITE THE OBITUARY OF THE REPUBLICAN PARTY JUST YET. JOE: THERE IS A LOT OF TALK ABOUT THE NEW ATTACK AT IN THE OHIO GOVERNOR'S RACE, WHICH WE GOT TO IN THE FIRST HOUR, AND ATTACK AD AGAINST AMY ACTON BY VIVEK RAMASWAMY, AND IT GOES AFTER HER CHILDHOOD AND FEATURES HER ESTRANGED MOTHER OVER ALLEGATIONS OF MOLESTATION BY A STEPFATHER. AND IT IS BEING CRITICIZED BY BOTH SIDES OF THE AISLE. SEPARATELY, TODAY, JEANNE, AXIOS IS DOING RESEARCH ON THE FLOOD OF MIDTERM POLITICAL ADS ACCUSING OPPONENTS OF PROTECTING PEDOPHILES AND CHILD SEXUAL ABUSERS. WE ARE ALL INUNDATED BY ADS, IT DOESN'T MATTER WHERE YOU LIVE IN THE COUNTRY IN A CYCLE LIKE THIS. BUT IMAGINE, SINCE THE BEGINNING OF SEPTEMBER, CANDIDATES AND OUTSIDE GROUPS HAVE AIRED $70 MILLION OF TV ADS MENTIONING PEDOPHILIA, JEFFREY EPSTEIN, AND ALLEGATIONS RELATED TO CHILD SEXUAL ABUSE. WHAT DOES THAT SAY ABOUT THIS CYCLE? JEANNE: YEAH, YOU KNOW, IT'S INTERESTING, BECAUSE WE WERE JUST TALKING ABOUT SOME OF THESE MAGA FOLKS WHO ARE STARTING TO SPLIT OR WEAKEN A TINY BIT -- NOT A LOT, BUT A TINY BIT -- FOR T DONALD TRUMP. ONE OF THE ISSUES IN ADDITION TO THE WAR AND THE COST OF GAS HAS BEEN THE FACT THAT THEY DON'T BELIEVE DONALD TRUMP FOLLOWED THROUGH ON HIS PROMISE IN TERMS OF JEFFREY EPSTEIN. JUST AS YOU WERE MENTIONING THAT, JOE, I'M THINKING BACK TO THAT, BECAUSE THE POLLING DOES BEAR THAT OUT. IT IS STILL AN ISSUE IN THE BACKS OF PEOPLE'S MINDS IS A PROMISE MADE THAT IS NOT BEEN KEPT ON THE PART OF THIS ADMINISTRATION. BUT I ALSO THINK IT SUGGESTS THAT YOU HAVE A LOT OF PEOPLE OUT THERE, THEY DON'T WANT TO TALK ABOUT THE ISSUES OF MOST CONCERN TO MOST AMERICANS, WHICH IS NUMBER ONE, THE ECONOMY, JOBS, INFLATION, COST-OF-LIVING. THEY ARE TRYING TO DIVERT ATTENTION ALL OVER THE MAP -- STATES, LOCAL, AND FEDERAL RACES. JUST LOOK AT THE NUMBER OF ADS REGARDING TRANSGENDER ISSUES. THAT IS SOMETHING THAT DOESN'T AFFECT A HUGE NUMBER OF AMERICANS. AND YET THERE IS A OUT THERE ON THAT. SO I DO THINK WE ARE TRYING TO SEE A LOT OF DIVERGENT ISSUES THAT WILL TAKE PEOPLE'S EYE OFF THE BALL. I DON'T THINK THEY WILL BE EFFECTIVE, AND I THINK THE ONLY WINNERS HERE ARE THE STRATEGISTS, CAMPAIGN ADVERTISERS, AND TV STATIONS. KAILEY: KATIE, JUST QUICKLY, WE ARE GOING TO SEE TWO DEBATES TONIGHT, ONE IN MICHIGAN, ONE IN KANSAS. WHO ARE THE STATES HIGHER-- STAKES HIGHER FOR, ROGER MARSHALL OR MIKE ROGERS? KATIE: MIKE ROGERS HAS AN OPPORTUNITY TO CLOSE A STRONG, AND ABDUL EL-SAYED HAS A UNIQUE STYLE WHEN HE IS CONFRONTED THE WHERE THAT COMES TO MIND IS "PUGNACIOUS." HE HAS THIS "HOW DARE YOU ASK ME ANY QUESTION LIKE THAT." MIKE ROGERS HAS TO CLOSE STRONG BECAUSE THEY COULD SEND THE FIRST REPUBLICAN SENATOR FROM MICHIGAN SINCE THE 1990'S. MIKE ROGERS HAS A LOT AT STAKE TONIGHT BUT I THINK IS GOING TO DO A GOOD JOB. IN KANSAS, YOU HAVE A PASTOR RUNNING. I WILL BE FASCINATING TO WATCH AS WELL. --THAT WILL BE FASCINATING TO WATCH AS WELL. JOE: KATIE FROST, JEANNE SHEEHAN ZAINO, I WOULD CALL IT THE PUGNACIOUS PANEL, BUT WE LOVE BOTH OF YOU. THIS IS BLOOMBERG. ♪ CHARLIE: IT IS 1:21 ON WALL STREET. WE DO CHECK MARKETS ALL DAY LONG ON BLOOMBERG. STOCKS PUSH HIGHER. THE S&P 500 INDEX AT THE BEST LEVEL OF THE SESSION, UP .7%. DOW UP BY ABOUT .5%. CRUDE OIL SLIPPING. NASDAQ UP 1.3%. THE NASDAQ 100 INDEX UP 1.5%. SPACEX'S EARNINGS REKINDLED THE BETS ON ARTIFICIAL INTELLIGENCE. THE PHILADELPHIA STOCK EXCHANGE'S SEMICONDUCTOR INDEX UP 2.5%. VIX BELOW 17, WALL STREET'S SO-CALLED FEAR GAUGE. 10-YEAR, 5.10%. 30-YEAR YIELD, 5.40%. GOAL LITTLE CHANGED, UP .1%. WEST TEXAS INTERMEDIATE CRUDE DOWN 1%. 96.89 A BARREL. BRENT DOWN .2%. AT&T LOWER BY 6%, REPORTING FEWER MOBILE PHONE SUBSCRIBERS THAN ANALYSTS EXPECTED IN THE THIRD QUARTER, REFLECTING STIFF COMPETITION IN THE MARKET AHEAD OF THE POTENTIAL ENTRY OF ELON MUSK'S SPACEX. VERIZON, WHICH REPORTS MONDAY, DOWN 2.5%. T-MOBILE DOWN 2.9%. BLACKSTONE AND A UNIT OF APOLLO GLOBAL MANAGEMENT ARE IN TALKS WITH THE NFL TO JOIN THE LEAGUE'S LIST OF APPROVED PRIVATE EQUITY FIRMS THAT CAN TAKE MINORITY STAKES IN ITS TEAMS. BLACKSTONE DOWN .5%, APOLLO UP .9%. SUBSCRIBE TO "BLOOMBERG IS NOW" WHEREVER YOU GET YOUR PODCASTS. THAT IS A BLOOMBERG BUSINESS FLASH. KAILEY: ALL RIGHT, CHARLIE PELLETT IN NEW YORK, THANK YOU SO MUCH. I AM KAILEY LEINZ IN WASHINGTON WITH AN EYE ON ST. PETERSBURG, AN EYE THAT JOE MATHIEU HAS ON RUSSIA AFTER A SPECIAL VISIT BY STEVE WITKOFF TO ST. PETERSBURG TO MEET WITH RUSSIAN PRESIDENT FOR PUTIN, HAVING HELD TALKS WITH UKRAINE'S VOLODYMYR ZELENSKYY. WITKOFF AFTER THE MEETING ANNOUNCED ON X THAT THE DISCUSSIONS WERE CONSTRUCTIVE AND "WE WILL CONTINUE WITH TRILATERAL TALKS WITH THE U.S., RUSSIA, AND UKRAINE AT THE TECHNICAL LEVEL." IN THE ROOM WITH PUTIN, WITKOFF HAD COMPLIMENTS FOR THE RUSSIAN PRESIDENT, CALLING HIM A HUMANITARIAN AND PRAISING HIM FOR RECENT ACTION ON DIESEL. >> YOUR DECISION TO EASE EXPORT CONTROLS ON DIESEL FOR RUSSIA AND SOME NOT JUST TO THE UNITED STATES, BUT TO THE WORLD AT LARGE, WHEN THE MIDST OF THIS ECONOMIC SHOCK, I THINK THAT IS REALLY IMPORTANT, THAT ACT ON YOUR PART, SIR. AND I KNOW THE PRESIDENT IS DEEPLY GRATEFUL FOR IT, AS OUR FARMERS AND TRUCKERS WHO USE DIESEL WHO ARE ADVERSELY AFFECTED BY THIS DIESEL CRISIS, AND PEOPLE ALL OVER THE WORLD. JOE: STEVE WITKOFF IN ST. PETERSBURG. VLADIMIR PUTIN APPARENTLY TAKEN BY ALL OF THIS, AND SAYS RUSSIA, TO KAILEY'S POINT, IS READY TO RESUME TRILATERAL NEGOTIATIONS. WHEN WE SAY THAT, WE MEAN RUSSIA, UKRAINE, THE U.S., NOT THE TRILATERAL RUSSIA, U.S., CHINA NEGOTIATION THAT HAD BEEN FLOODED BY VLADIMIR PUTIN DAYS AGO. IT IS WHERE WE START WITH IAIN MARLOW, WHO COVERS DIPLOMACY AND STATECRAFT FOR US IN WASHINGTON. WE HAVE BEEN DOWN THIS ROAD BEFORE. IS THERE SOMETHING DIFFERENT THIS TIME? >> I DON'T THINK SO. I THINK THE BIG DIFFERENCE IS THE MIDTERMS SORT OF AMPLIFYING THE FLURRY OF POLICIES OUT OF THE WHITE HOUSE THAT SEEMED TO BENEFIT RUSSIA MORE THAN UKRAINE AND ITS EUROPEAN ALLIES. AND IN SOME CASES, EVEN THE U.S., WHEN IT COMES TO THE DIESEL DEAL OR THE SANCTIONS RELIEF, THINGS LIKE THIS. THE TRUMP ADMINISTRATION IS GIVING THINGS TO RUSSIA TO TRY AND ENTICE THEM TOWARDS A SORT OF PEACE DEAL IN UKRAINE. BUT THE REAL ONUS SEEMS TO BE ON PUSHING DIESEL INTO THE GLOBAL MARKET, TRYING TO LOWER ENERGY PRICES AHEAD OF THE MIDTERMS. WHAT WITKOFF SAID IN HIS COMMENTS ABOUT THE ECONOMIC SHOCK, HE DIDN'T NAME IT, THAT ECONOMIC SHOCK IS THE WAR AGAINST IRAN, WHICH DISRUPTED TRAFFIC THROUGH THE STRAIT OF HORMUZ, ETC. IT'S A STRANGE CONFLUENCE OF THINGS WE HAVE HERE. I THINK AS THE MIDTERMS GET CLOSER AND AS THE CADENCE OF POLICIES OUT OF THE WHITE HOUSE THAT SEEMED TO BENEFIT THE KREMLIN INCREASE, YOU ARE SEEING A LITTLE MORE PUSHBACK AMONG SOME REPUBLICAN LAWMAKERS, BUT ALSO EUROPEAN OFFICIALS AND OTHERS, PARTICULARLY THE RIFT BETWEEN TRUMP AND ZELENSKYY. KAILEY: IN PART, THAT RIFT WAS DRIVEN BY ZELENSKYY'S ALLEGATIONS THAT STARLINK ACCESS HAS BEEN SLOWED, WHICH IT RELIES ON FOR INTERNET SERVICES. STARLINK OPERATED BY SPACEX. ELON MUSK SUGGESTED HE WOULD NOT HAVE HAD THE ABILITY TO SLOW DOWN STAR SHIELD SPECIFICALLY, THAT THAT WAS A DECISION THAT THE PENTAGON OR PRESIDENT WOULD HAVE TO MAKE. AND YET "THE WALL STREET JOURNAL" IS REPORTING THAT THE DECISION CAME FROM MUSK HIMSELF. CAN BOTH OF THOSE THINGS BE TRUE, IAIN? IAIN: IT IS VERY CONFUSING BECAUSE THERE IS LIMITED PEOPLE WHO KNOW EXACTLY WHAT HAPPENED HERE. WHAT WE END UP HAVING IS THIS SORT OF BLAME GAME BETWEEN ZELENSKYY, TRUMP, AND MUSK, VERY STRONG CHARACTERS, A LOT OF VESTED INTERESTS, AND A LOT OF HISTORY. PREVIOUS OVAL OFFICE SHOUTING MATCHES, PREVIOUS GRIPES ABOUT STARLINK AND WHETHER IT'S BEING USED OR OFFERED EFFECTIVELY TO UKRAINE, AND ALSO IN SOME CASES BEING USED BY RUSSIAN SOLDIERS. THERE IS A LOT OF CONFUSION AND NOT A LOT OF CLARITY FROM THE WHITE HOUSE. I THINK IN PART THAT COULD BE BECAUSE NO ONE KNOWS EXACT THE WHAT IS GOING ON, WHETHER THE WHITE HOUSE SUBTLY APPROVED OF MUSKA DOING THIS, OR WHETHER MUSK SUGGESTED IT BE DONE. WE DON'T KNOW WHAT THE MOMENT. WE HAVE REPORTED CERTAIN THINGS AND WE HAVE SEEN OTHER PEOPLE REPORT CERTAIN THINGS, AND WE ARE STILL AT A POINT WHERE UKRAINE SAYS IT HAPPENED AND IT HASN'T REALLY HAPPENED UP UNTIL NOW FOR ANY GOOD REASON, GOOD TECHNICAL REASON. JOE: FLOODED MS. LINSKY SAYS U.S. INTELLIGENCE SHARING WITH UKRAINE HAS--VOLODYMYR ZELENSKYY SAYS U.S. INTELLIGENCE SHARING WITH UKRAINE HAS RESUMED. AS WE DELINEATE THESE TWO STORIES, THAT IS AN INCREDIBLY BIG DEAL FOR UKRAINE. THIS WOULD SUGGEST THAT KYIV HAS NOT LOST TO THE TRUMP ADMINISTRATION? IAIN: YOU SAW THAT WITH ZELENSKYY THE OTHER DAY WALKING BACK THIS FEUD WHEN HE WAS IN OSLO FOR THESE TALKS. THERE WAS A LOT OF BONHOMIE INSTEAD OF THIS STRIDENT ACCUSATION YOU HEARD IN EARLIER INTERVIEWS, BOTH WITH BLOOMBERG OVER THE WEEKEND AND OTHER OUTLETS. I THINK IT SHOWS THE NEED FOR UKRAINE TO KEEP TRUMP ON SIDE. IT'S HARD TO BLAME ZELENSKYY FOR HIS FRUSTRATION, GIVEN WHAT THE WHITE HOUSE IS DOING WHEN IT COMES TO RUSSIA. I THINK THE OTHER THING, AS WE TALK ABOUT TALKS, BUT GENTLE NEW--POTENTIAL NEW TAX, ONE THING TO STRESS IS THAT NO ONE FEELS LIKE ANYTHING IS CHANGED IN TERMS OF THE DYNAMICS. EVERYONE KNOWS WHAT RUSSIA WANTS, WHAT UKRAINE WANTS, WHERE THE RED LINES ARE. THE ISSUE IS THE POLITICAL WILL TO GET THERE. I DON'T THINK ANYONE IS SAYING THAT POLITICAL WILL HAS CHANGED, EITHER IN PUTIN'S EYES OR ZELENSKYY'S EYES IN TERMS OF COMPROMISE. RIGHT NOW WE ARE SEEING A LOT OF THINGS MERGING TOGETHER. THE DIESEL DEAL, THIS PRISONER RELEASE JUST TODAY, THE SANCTIONS WAIVER FOR RUSSIA. AND THE WHITE HOUSE IS SAYING, WELL, LOOK, WE ARE DOING THIS AS PART OF A PUSH TO END THE WAR, BUT ALSO WE ARE LOWERING PRICES. THERE ARE A LOT OF THINGS GETTING MIXED UP. SOME OF THIS IS POLITICS. SOME ARE RAW POWER POLITICS. A LOT OF IT IS MESSAGING, TOO. KAILEY: I WOULD IMAGINE THE SAME ARGUMENT COULD APPLY TO ANY KIND OF YOU WITH IRAN, IT DOES NOT SEEM LIKE ANY PROGRESS IS HAPPENING. IRAN TODAY, AT LEAST THE FOREIGN MINISTER SAID IF THE U.S. IS SERIOUS ABOUT RESTARTING THE DIPLOMATIC PROCESS THAT THE NEED TO PULL BACK ON THE NAVAL BLOCKADE WHEN WOULD MAKE THE STRAIT OF HORMUZ OPEN BACK UP AGAIN. WAS THAT NOT THE BASIS OF THE MEMORANDUM OF UNDERSTANDING THEY SIGNED AND SUBSEQUENTLY FELL APART? WHAT WOULD BE DIFFERENT IF THAT WERE TO PLAY OUT A SECOND TIME? IAIN: THIS OP-ED IS SHOWING A COUPLE THINGS. 1, IRAN ACTUALLY REALLY DOES WANT TO GET BACK TO THAT MEMORANDUM OF UNDERSTANDING. IN PART THAT IS BECAUSE THAT MEMORANDUM OF UNDERSTANDING BENEFITED IRAN. A LOT OF THE ANALYSIS, INCLUDING FROM INSIDE OUR SMART C COLLEAGUES LOOK THROUGH THE 14-POINT MEMO -- I'M TRYING TO REMEMBER CORRECTLY -- 11 OF THEM FAVORED IRAN. IT WAS A DEAL THAT BENEFITED IRAN MORE THAN THE U.S. WHAT HE DID WAS OPEN UP HORMUZ AND WOULD LOWER ENERGY PRICES. THE ISSUE HAS ALWAYS BEEN -- YOU SEE THAT IN THE OP-ED TODAY -- SEQUENCING STILL REMAINS AN ISSUE. THEY WANT THE BLOCKADE TO BE LIFTED. A FEW DAYS LATER, GIVE US OUR FROZEN ASSETS, UNDO A FEW SANCTIONS AND HORMUZ IS OPEN. THE U.S. HAS NOT BEEN WILLING -- SINCE THE FIRST TIME THEY SIGNED THE DEAL -- HAS NOT BEEN WILLING TO GO BACK BECAUSE A LOT OF PEOPLE CRITICIZED THE DEAL. KAILEY: IAIN MARLOW OF BLOOMBERG, THANK YOU SO MUCH. FOR MORE ON THE CURRENT SITUATION IN THE STRAIT OF HORMUZ AND THE ENERGY PICTURE IN THE MIDDLE EAST, WE TURN TO AN IMPORTANT CONVERSATION IS ROMAINE BOSTICK SITS DOWN WITH THE CEO OF KUWAIT PETROLEUM. ROMAINE: WE ARE HERE WITH SHEIKH NAWAF SAUD AL-SABAH . TALKING ABOUT DE-ESCALATION OF CONFLICT THAT IS WELL INTO ITS EIGHTH MONTH. THE STRAIT OF HORMUZ SHUT DOWN FOR MOST OF THAT TIME AND NOW WE ARE SEEING IRAN HIT A LOT MORE TARGETS IN THE GULF OF OMAN AND THAT HAS AFFECTED YOUR SHIPMENTS IN AND OUT OF KUWAIT. WHAT MEASURES HAVE YOU TAKEN TO TRY TO FIND ALTERNATIVE ROUTES? SHEIKH AL-SABAH: WE HAVE STARTED SINCE THE BEGINNING OF THE CONFLICT, WE HAVE MADE CLEAR TO OUR CUSTOMERS WE WILL DO EVERYTHING POSSIBLE TO MAKE SURE IN SHIPMENTS CONTINUE TO CUSTOMERS. WHEN THE STRAIT DID NOT HAVE ANY PASSAGE WE USED OUR TRADING ARM AND USED EVERYTHING AT OUR DISPOSAL TO MAKE SURE ALTERNATIVE SHIPMENTS COMMITTED TO OUR CUSTOMERS. NOW THAT SHIPMENTS ARE GOING THROUGH WE ARE COMMITTED TO RAISING PRODUCTION AS HIGH AS WE CAN TO ACCOMMODATE THE REQUIREMENTS OF OUR CUSTOMERS. WE ARE WORKING THROUGH THE STRAIT AND LOOKING INTO THE FUTURE. WE WILL LOOK TO ALTERNATIVES. ROMAINE: THE SHIP TO SHOP TRANSFERS -- SHEIKH AL-SABAH: THAT IS CONTINUING. THAT IS WORKING. WE HAVE MOVED FROM ALMOST NOTHING TO THE HEIGHT OF THE CRISIS TO WELL OVER 2 MILLION BARRELS PER DAY. OUR FIELDS AND FACILITIES ARE RESILIENT. THEY CAN HANDLE THAT. WHAT IS MISSING IS ADDITIONAL SECURITY FOR SHIPS TO TRANSIT THROUGH THE STRAIT SO WE CAN RAISE PRODUCTION TO WHERE IT WAS, 2.7 MILLION BARRELS PER DAY. ROMAINE: WHEN YOU SAY YOU ARE MEETING THEIR OBLIGATIONS, IS THAT 100% OF WHAT IS EXPECTED? SHEIKH AL-SABAH: ON THE CRUDE OIL SIDE, WE ARE EXPORTING BASICALLY WHAT WE DID BEFORE THE WAR BEGAN. WE ARE MEETING THE REQUIREMENTS WITH CRUDE OIL. IT IS ON PRODUCT WHERE SHIPPING IS MORE CONSTRAINED FOR PRODUCTS, THAT IS WHERE WE HAVE HAD TO RESTRAIN SOME OF OUR REFINING CAPACITY. YOU ARE SEEING THAT RESULT IN INTERNATIONAL DIESEL AND JET FUEL PRICES. ONE OF THE BIGGEST REFINERIES IN THE WORLD THAT PRODUCES JET AND DIESEL IS IN KUWAIT. WE NEED MORE PRODUCT CARRIERS TO COME INTO THE GULF TO CARRY THAT PRODUCT OUT. ROMAINE: IS THE MAIN CONSTRAINT ON REFINED PRODUCTS GETTING THE TANKERS YOU NEED, OR GETTING A SAFE ESCORT OF THOSE TANKERS IN AND OUT? SHEIKH AL-SABAH: IT IS BOTH. ONCE YOU HAVE SAFE ESCORT MORE TANKERS WILL COME. WE ARE USING OUR STRATEGIC TANKER FLEET TO SHUTTLE CRUDE AND PRODUCT THROUGH THE STRAIT. ROMAINE: YOU HAVE TAKEN SOME DAMAGE TO SOME OF YOUR TANKERS BECAUSE OF THE WAR. HAVE YOU BEEN ABLE TO REPAIR AND REPLACE THOSE IN AN EFFICIENT MANNER? SHEIKH AL-SABAH: WE ARE DOING EVERYTHING WE CAN TO MOVE THE SHIPMENTS OUT. THAT IS REPAIRING THE TANKERS THAT HAVE BEEN HIT. SOME OF THOSE ARE BACK IN SERVICE. OTHERS ARE IN THE PROCESS, GOING THROUGH DRY DOCK. ROMAINE: HAVE YOU ASKED THE U.S. MILITARY FOR MORE HELP? SHEIKH AL-SABAH: THE U.S. MILITARY HAS BEEN FANTASTIC SUPPORTING US ALL THE WAY THROUGH. IT HAS BEEN CLEAR THERE IS NOTHING 100% EFFECTIVE. WE WILL ABSORB SOME HITS. IT IS A RISK WE ARE TAKING. WE ARE ASKING THE INTERNATIONAL COMMUNITY, ASKING OUR CUSTOMERS TO BEAR A GREATER PORTION OF THAT RESPONSIBILITY AND MOVE SHIPS TO WORK WITH US ON THE RISKS WE ARE TAKING. ROMAINE: WHY HAVE WE NOT SEEN THAT YET? SHEIKH AL-SABAH: YOU ARE STARTING TO SEE THAT. OUR CUSTOMERS ARE COMING INTO THE GULF, SUPPORTING US WITH SHIPPING AND COLLECTING PRODUCT FROM KUWAIT. ROMAINE: ARE THESE PRIMARILY CUSTOMERS IN EUROPE AND ASIA? SHEIKH AL-SABAH: ASIA. WE ARE ASKING EUROPEAN CUSTOMERS TO DO THE SAME. THEY ARE WORKING WITH THEIR GOVERNMENTS TO ENSURE THEY CAN COME THROUGH THE GULF. ROMAINE: I KNOW YOU ARE NOT INVOLVED IN PEACE NEGOTIATIONS BUT THERE HAS BEEN A RUMOR OF DE-ESCALATION. ARE YOU AWARE OF ANY PROGRESS ON THAT FRONT? SHEIKH AL-SABAH: I'M NOT AWARE OF THAT. WE ENSURE THAT WE CAN GET AS MUCH OF OUR SHIPMENTS OUT TO OUR CUSTOMERS AND WE LET THE POLITICIANS SORT OUT THE REST. ROMAINE: IF THERE WAS A DEAL, HOW QUICKLY COULD YOU RAMP UP PRODUCTION AND DELIVERY OF THAT PRODUCTION BACK UP TO THE 2.6 BARRELS WE SAW PRIOR TO THE WORK? SHEIKH AL-SABAH: IMMEDIATE. OUR FACILITIES ARE READY TO WORK, OUR FIELDS ARE MORE RESILIENT. THIS IS A TESTAMENT TO NOT ONLY KUWAIT'S, KPC'S ABILITY TO PRODUCE. THE ONLY THING THAT IS MISSING IS AN EXIT ROUTE FOR PRODUCT. ROMAINE: YOU HAVE TALKED ABOUT REFINED PRODUCTS BEING AT CRITICAL LEVELS. THERE HAS BEEN SOME RELIEF THAT KUWAIT HAS TAKEN CREDIT FOR WITH REGARD TO GETTING SOME PRODUCT BACK TO MARKET. HOW INVOLVED WERE YOU WITH GETTING THAT DIESEL AND REFINED PRODUCTS OUT? SHEIKH AL-SABAH: WE ARE PRIORITIZING GETTING THESE PRODUCTS INTO THE MARKET, ESPECIALLY BECAUSE DIESEL AND JET FUEL IS FACING A SEVERE SHORTAGE. A LOT OF THE SHORTAGE IS DUE TO HAVING 6 MILLION BARRELS OF CAPACITY INSIDE THE GULF. MUCH OF THAT IS BEING RESTRAINED BECAUSE OF THE IN THE ABILITY TO MOVE IT SAFELY OUT. THE PIPELINES THAT EXIST THROUGH SAUDI ARABIA AND THE EMIRATES. IS CRUDE YOU ARE SEEING A RELATIVELY MUTED REACTION ON CRUDE PRICES BUT THERE IS NOT ENOUGH PRODUCT MOVING INTO THE MARKET. ROMAINE: YOUR INVOLVEMENT ALLOWED FOR THE EUROPEAN RELEASE OF THEIR RESERVES. HAVE YOU BEEN ASKED TO DO MORE BY THE UNITED STATES TO GET MORE REFINED PRODUCTS HERE? SHEIKH AL-SABAH: WE ARE WORKING WITH OUR U.S. PARTNERS TO MOVE AS MUCH AS WE CAN. THE POINT REMAINS THAT THERE IS NO SUBSTITUTE FOR SAFE TRANSIT THROUGH THE STRAIT OF HORMUZ. THAT NEEDS TO BE RESTORED AS QUICKLY AS POSSIBLE. ONCE THAT HAPPENS YOU WILL HAVE PRODUCT MOVING AT A MUCH BRISKER PACE. ROMAINE: LONG-TERM THERE HAS BEEN TALK ABOUT FUNDING ALTERNATIVE TO THE STRAIT OF HORMUZ. THERE HAS BEEN A LOT OF TALK ABOUT STUDYING EXPORT PIPELINES THAT YOU HAVE VENTED WITH SAUDI ARABIA AND THE UAE. ALL STOCKS STILL GOING ON? SHEIKH AL-SABAH: ABSOLUTELY. WE ARE MAKING A LOT OF PROGRESS. PIPELINES CAN ONLY CARRY CRUDE. YOU CAN SOLVE FOR ONE PORTION OF THE PROBLEM BUT CANNOT SOLVE FOR 20% OF THE WORLD'S CRUDE GOING THROUGH THE STRAIT OF HORMUZ -- YOU CAN DO PIPELINES BUT NOT FOR THE PRODUCT THAT IS MISSING, 6 MILLION OR MORE BARRELS OF REFINED PRODUCT THAT GO THROUGH. THEY ARE MISSING 20% OF THE WORLD'S LNG NEEDING TO GO OUT THROUGH SHIPS. IT NEEDS TO GO THROUGH THE. STRAIT1/4 TO 1/3 OF THE WORLD'S FERTILIZER COMES THROUGH THE STRAIT. THAT IS JUST FROM THE ENERGY SIDE. THERE IS NO SUBSTITUTE FOR SAFE PASSAGE THROUGH THE STRAIT OF HORMUZ. ROMAINE: WITH REGARDS TO CRUDE IN THE PIPELINE, IF THERE WAS A CONCRETE DEAL BETWEEN THE IRAN AND THE STRAIT OF HORMUZ, TO THOSE PIPELINE PLANS GET PUSHED TO THE BACK BURNER? SHEIKH AL-SABAH: OF COURSE NOT. WE WOULD PURSUE THE PIPELINE PROJECTS BECAUSE YOU HAVE TO PLAN FOR THE FUTURE. WE HAVE MULTIPLE PLANS FOR CONTINGENCIES. ROMAINE: THERE IS AN OPEC+ MEETING AT THE BEGINNING OF NEXT MONTH. ON THE DEAL FRONT, IF THERE WAS A DEAL DO WE SEE THE QUOTAS BASICALLY BECOME MOOT? ? WILL YOU BE IN PRODUCTION WITH EVERY OTHER PRODUCER? SHEIKH AL-SABAH: AT THIS POINT, PRODUCTION ALLOCATION FROM OPEC IS OF LIMITED USE BECAUSE THERE IS A SHORTAGE IN THE INTERNATIONAL COMMUNITY FOR PETROLEUM PRODUCTS. WE WILL PRODUCE AS MUCH AS WE CAN. I THINK EVERYONE ELSE IS DOING THE SAME. THERE HAS BEEN A STRATEGIC DRAWDOWN FOR RESERVES AROUND THE WORLD. IT WILL TAKE A LOT OF TIME TO CLEAR UP THAT SHORTAGE. WE ARE NOT REALLY CONCERNED ABOUT LIMITATIONS ON PRODUCTION. WE WANT TO GET AS MUCH CRUDE AND AS MUCH PETROLEUM PRODUCTS OUT INTO THE MARKET. ROMAINE: GIVEN THE DISRUPTIONS, IS THERE ANY CONCERN AT KPC ABOUT HAVING LOST CUSTOMERS PERMANENTLY? SEVERAL HAVE LOOK FOR ALTERNATIVE SOURCES OF BOTH CRUDE AND REFINED PRODUCTS. SHEIKH AL-SABAH: NO, NO, NO IRAN WE HAVE A CUSTOMERS WORK WITH US FOR 50 YEARS OR MORE. THEY HAVE BUILT REFINERIES THAT ARE DESIGNED TO TAKE KUWAIT EXPORT CRUDE. IT IS NOT EASY FOR THEM TO MOVE TO ANOTHER SOURCE OF CRUDE. AT THE SAME TIME THEY KNOW WHEN THEY FACE TROUBLE, WE HAVE ALWAYS STOOD BY THEM AND BEEN HELPFUL. WHEN WE ARE FACING THESE CONSTRAINTS THEY ARE STANDING BY US AND WORKING WITH US. WE ARE ENSURING THEY HAVE THE CRUDE THAT THEY NEED. OUR CUSTOMERS ARE STANDING BY US AND WE ARE NOT CONCERNED ABOUT CHANGES. ROMAINE: LONG-TERM, YOU ARE STILL TARGETING 4 MILLION BARRELS OF CAPACITY BY 2035, INVITING A LOT OF FOREIGN COMPANIES TO COME IN TODAY AND INVEST IN KUWAITI INFRASTRUCTURE AT A TIME WHERE THE MILITARY BACKDROP IS NOT NECESSARILY CONDUCIVE TO THAT. HOW RECEPTIVE IS THAT PITCH TO THOSE FOLKS? SHEIKH AL-SABAH: THEY ARE ABSOLUTELY ON BOARD. WE ARE COMMITTED TO REACHING 4 MILLION BARRELS A DAY CAPACITY BY 2035. THE UPSTREAM OPENING WE HAVE NOW WHERE WE ARE INVITING INTERNATIONAL PARTNERS TO DEVELOP FIELDS. WE DRILLED THREE WELLS OFFSHORE IN OUR HISTORY. ALL THREE HAVE BEEN MASSIVE SUCCESSES. EVERY DROP OF OIL WE HAVE PRODUCED OVER THE LAST 80 YEARS HAS BEEN ONSHORE. WE ARE MOVING OFFSHORE. THAT WILL ALLOW US TO REACH 4 MILLION BARRELS A DAY PRODUCTION CAPACITY. ROMAINE: WITH REGARDS TO THE OFFSHORE, IS THAT PRIMARILY GAS? SHEIKH AL-SABAH: IT IS OIL AND GAS. PRIMARILY OIL. IT IS EXACTLY WHAT WE NEED BUT THERE IS PLENTY OF GAS, AS WELL. WE ARE DOING THAT OFFSHORE, AS WELL. THE REACTION FROM THE INVESTMENT COMMUNITY HAS BEEN FANTASTIC, ESPECIALLY OVER THE PAST SUMMER. WE SIGNED WITH THREE INFRASTRUCTURE FUNDS, A MAJOR $16 BILLION JOINT VENTURE FOR PIPELINE LEASING IN KUWAIT. IN THE MIDST OF IRANIAN ATTACKS AND MISSILES, IT IS A TESTAMENT TO THE FAITH THAT THE INTERNATIONAL INVESTMENT COMMUNITY HAS IN KUWAIT AND KPC TO WEATHER THE STORM. IT IS NOT OUR FIRST TIME GOING THROUGH A CRISIS LIKE THIS. WE HAVE BEEN THROUGH MUCH WORSE AND ALWAYS COME OUT MUCH MORE RESILIENT. ROMAINE: WE ONLY HAVE 30 SECONDS LEFT. YOU ARE HERE IN THE UNITED STATES, PRIMARILY FOR AN EVENT TAKING PLACE IN WASHINGTON. CAN YOU FILL US IN ON THAT? SHEIKH AL-SABAH: ON SATURDAY WE WILL INAUGURATE THE DESERT SHIELD AND DESERT STORM MEMORIAL ON THE NATIONAL MALL. IT WILL BE A MEMORIAL RIGHT NEXT TO ALL THE OTHER MEMORIALS ON THE MALL, COMMEMORATING THE GULF WAR THAT HAPPENED IN 1991 UNDER U.S. LEADERSHIP. FOR THAT WE ARE ETERNALLY GRATEFUL TO THE UNITED STATES, OUR PARTNERS IN ALMOST EVERYTHING WE DO. THAT IS A RELATIONSHIP THAT HAS CONTINUED FROM GENERATION TO GENERATION. ROMAINE: YOUR RELATIONSHIP RIGHT NOW WITH THE U.S. GOVERNMENT IS STILL HEALTHY? SHEIKH AL-SABAH: ABSOLUTELY. ROMAINE: WE APPRECIATE YOU JOINING US. KAILEY: BLOOMBERG'S ROMAINE BOSTICK WITH THE CEO OF KUWAIT PETROLEUM CORPORATION. A GREAT CONVERSATION. WE GO BACK TO THE MARKETS FOR A QUICK CHECK OF HOW WE ARE TRADING. CHARLIE: THANK YOU VERY MUCH. WE BEGIN WITH CRUDE. WEST TEXAS INTERMEDIATE CRUDE TRADING LOWER, $97.06. A BARREL OF BRENT, $108.81. S&P UP 53, .7%. THE DOW UP .5%. THE NASDAQ AND THE NASDAQ 100 BOTH HIGHER. NASDAQ UP 1.2%. NASDAQ 100 OF 1.3%. WE HAVE TESLA, AND META PLATFORMS. JOE: CHARLIE PELLETT, THANK YOU. HE WILL BE BACK AT THE TOP OF THE HOUR AS WE KICK OFF BLOOMBERG BUSINESSWEEK DAILY. GETTING BACK TO POLITICS IN WASHINGTON. ALONGSIDE KAILEY LEINZ, I AM JOE MATHIEU. WITH 13 DAYS TO GO AND TWO IMPORTANT DEBATES. TWO CRITICALLY IMPORTANT SENATE RACES. THE PRESIDENT IS IN SOUTH CAROLINA. DARLINE GRAHAM. WE WILL WATCH DEBATES IN MICHIGAN AND KANSAS WITH ROGER MARSHALL AND PASTOR HAMILTON. THEIR FIRST OPPORTUNITY TO SQUARE OFF BEFORE VIEWERS IN AN ACTUAL OFFICIAL DEBATE. IT IS WHERE WE START WITH BILL WHO HAS BEEN COVERING THE DEBATES FOR US. THEY HAVE BEEN MOVING DOZENS OF SEATS IN THE DIRECTION OF DEMOCRATS. YOU LOOK AT 13 DAYS AND SOME 13 MILLION PEOPLE ALREADY EARLY VOTING, WHAT IS THE POINT OF A DEBATE? BILL: YOU ARE STILL CATCHING 70% OR MORE OF THE ELECTRIC. A LOT OF THESE STATES, 25 PERCENT OR SO OF THE TOTAL VOTE NUMBER IS ALREADY COMING IN. THAT STILL LEAVES A BIG GROUP OF PEOPLE WHO WAIT UNTIL LATER. SOME OF THOSE MAIL-IN BALLOTS GET MAILED ON ELECTION DAY. IN THE STATES THAT DO COUNTING FOR WEEKS AFTERWARDS, THAT WILL PLAY A PART. YOU ARE REACHING SOME OF THESE VOTERS THAT ARE EITHER UNDECIDED OR HAVE NOT GONE OUT. WHAT WE ARE SEEING IS A LOT OF REALLY, REALLY TIGHT RACES. I THINK WE WILL SEE AN INCREASING INTENSITY IN THE NEXT 13 DAYS OF THE PRESIDENT TRAVELING, PEOPLE LIKE JD VANCE OUT ON THE ROAD TODAY, AS HE IS IN OHIO, TRYING TO CLOSE THE GAP. YOU HAVE FIVE OR SIX JUMP BALLS WHERE THE POLLS SHOW 2-3-POINT GAPS. KAILEY: THE LATEST POLL SHOWS EL-SAYED UP BY TWO OR THREE POINTS. HOW MUCH CAN WE RELY ON A POLL IN A STATE LIKE MICHIGAN? BILL: EVERY ELECTION HAS BEEN A TEST OF THE WHOLE PULLING INDUSTRY. IT IS A HARD QUESTION TO ANSWER. THERE IS A CONSISTENCY TO A LOT OF THESE POLLS. WE KNOW THEY HAVE CHANGED THEIR METHODS. EVERYTHING WE KNOW SHOWS THESE ARE FAIRLY TIGHT RACES. I THINK EL-SAYED KNOWS WHAT SOME OF HIS WEAKNESSES ARE. HE IS TRYING TO REACH OUT OF TO VOTERS WHO WERE NOT WITH HIM IN THE PRIMARY AND HE'S BRINGING OUT A BIG GUN NEXT WEEK WITH FORMER PRESIDENT OBAMA COMING IN FOR A BIG RALLY IN DETROIT. KAILEY: OBAMA IS GOING THERE AND TRUMP IS COMING THERE BUT IN OF THE WEEK. SUNDAY IS THE PRESIDENT'S TRIP TO MICHIGAN. BILL, THANK YOU SO MUCH. AS WE THINK ABOUT THE POLLS AND THE RACE RATINGS THAT ARE TIGHTENING AS WE GET CLOSER TO ELECTION DAY, WE WANT TO TURN TO THE CRYSTAL BALL, WHICH MOVE 28 HOUSE RACES IN THE DIRECTION OF DEMOCRATS. KYLE KONDIK FROM THE UNIVERSITY OF VIRGINIA IS BACK WITH US ON BLOOMBERG TV AND RADIO. IT IS GREAT TO HAVE YOU BACK. TO SEE ALMOST 30 RACES MOVING IN THE SAME DIRECTION IS CERTAINLY SOMETHING. ARE THESE UNIQUE TO EACH INDIVIDUAL SEAT, OR IS THIS JUST SOMETHING INDICATIVE OF A WAVE HAPPENING? KYLE: IT IS MUCH MORE THE FOREST THAN THE TREES. THE OVERALL ENVIRONMENT IS TO MAKE A LOT OF CHANGES. WE HAVE MOVED A LOT OF THINGS THAT ARE RATINGS TO WORK DEMOCRATS. SINCE LABOR DAY A LOT OF US WERE WAITING TO SEE WHAT WOULD HAPPEN AFTER THE SUMMER, THE START OF THE TRADITIONAL CAMPAIGN SEASON. THE START OF CAMPAIGN SEASON GOES WAY BEFORE LABOR DAY THESE DAYS. WHAT WE SIDE LABOR DAY WAS THE PRESIDENT'S APPROVAL KEPT GETTING WORSE, OR STAYING IN A REDUCED POSITION, IN THE DEMOCRATIC LEAD IN POLLING TICKE D UP A FEW POINTS. WE HAD SOME PROMINENT ONES COME OUT. NEW YORK TIMES WAS D PLUS 10 OR 11. THAT IS WHAT WE SAW IN 2018. I THINK THIS IS MUCH MORE ABOUT THE OVERALL ENVIRONMENT AS OPPOSED TO RACE BY RACE DEVELOPMENTS. THERE WILL BE EXCEPTIONS TO THE RULES. BRIAN FITZPATRICK IS A REPUBLICAN IN THE PHILADELPHIA AREA. HE MIGHT SURVIVE, EVEN THOUGH HE IS ONE OF THE FEW REPUBLICANS -- THAT IS MORE THE EXCEPTION THAN THE RULE. IN THESE SWING DISTRICTS YOU WILL SEE DEMOCRATS DO QUITE WELL. JOE: STICKING WITH THE FOREST, 28 AT LEAST LEANING TO DEMOCRATS PAST 218. DO YOU TAKE A STAB AT A NUMBER OF SEATS THAT WILL FLIP? KYLE: I HAVE BEEN THINKING MAYBE 230-235. 235 IS A LANDMARK NUMBER. I DO NOT KNOW IF I QUITE THINK DEMOCRATS WILL GET THERE BUT THEY CERTAINLY COULD. WE ARE STILL KIND OF FINALIZING EXACTLY WHERE WE WILL PLACE ALL OF THE RACES AFTER WE MOVED OUT OF THE TOSS-UP COLUMN. WE WILL MISS A SOUND BUT WE THINK WE WILL GET A LOT OF THE RIGHT. LAST THREE CONGRESSES HAVE BEEN SMALL. 222 WAS THE BIGGEST MAJORITY IN THE LAST THREE. I THINK DEMOCRATS WILL GET BEYOND THAT AND HAVE A MORE WORKABLE MAJORITY EVEN IF IT IS NOT HUGE. KAILEY: I NOTE AS I'M GOING THROUGH THE LIST OF THE 28 RATINGS CHANGES YOU MADE THAT TWO OF THE MOVES FROM TOSS-UP TO DEMOCRAT ARE SEATS IN IOWA. ZACH NUNN IS A VULNERABLE REPUBLICAN. HOW MUCH DO YOU EXPECT HOUSE RACES IN A PLACE LIKE I WILL WILL AFFECT THE SENATE RACE. IS THE FATE OF ASHLEY HINSON TIED TO THE FATE OF ZACH NUNN? KYLE: NOT NECESSARILY. IOWA HAS FOUR HOUSE SEATS BUT THREE ARE COMPETITIVE. DEMOCRATS COULD END UP WINNING ALL THREE SEATS. DEMOCRATS WON ALL THREE IN 2018 BUT KIM REYNOLDS WAS STILL REELECTED GOVERNOR IS REPUBLICAN. THREE OF THE IOWA HOUSE SEATS ARE LESS REPUBLICAN THAN THE STATE AS A WHOLE. THERE IS A WORLD IN WHICH ASHLEY HINSON WINS BUT REPUBLICANS WIN THE GOVERNORSHIP AND MAYBE TWO OR THREE OF THE U.S. HOUSE RACES. THERE IS SOME RECENT PRECEDENT FOR THAT BASED ON HOW THE DISTRICT LINEUP COMPARED TO THE STATE. JOE: BILL WAS TALKING ABOUT JUMP BALLS ON THE SENATE SIDE. WE HAVE SOME BIG DEBATES TONIGHT. ON LOOKING AT YOUR OVERALL RATINGS FOR THE UPPER CHAMBER. 49 LIENS D, 46 LIENS R, FIVE TOSS UPS. ARE YOU TAKING A STAB AT WHO CONTROLS THE SENATE AFTER THIS? KYLE: I THINK IT IS UP IN THE AIR. IF YOU TAKE THE POLLS AT FACE VALUE, THE DEMOCRATS ARE FAVORED. I DO NOT KNOW IF WE SHOULD LOOK AT IT THAT WAY. THE LEADS ARE QUITE SMALL. MAINE IS REALLY CLOSE. DEMOCRATS ARE LEADING BY 3-4 POINTS IN OHIO AND TEXAS BUT THAT IS NOT SOME INSURMOUNTABLE LEAD FOR REPUBLICANS TO OVERCOME, PARTICULARLY IN STATES THAT ARE GENERICALLY REPUBLICAN LEANING. KAILEY: KYLE, CRISTOBAL MOVED FIRST ON THIS LAST WEEK. A SHIFT IN THE SENATE RACE IN MINNESOTA AWAY FROM DEMOCRATS. EVERYTHING WE ARE TALKING ABOUT IS DIRECTIONALLY TOWARD THE DEMOCRATS. CRYSTAL BALL IN THE COOK REPORT MOVED MINNESOTA AWAY FROM THE DEMOCRATIC PARTY TOWARD THE REPUBLICAN, MICHELLE TO FOIA. WHAT IS GOING ON? KYLE: THERE IS A LACK OF GREAT INFORMATION ABOUT MINNESOTA. PEGGY FLENNIKEN, THE DEMOCRAT, SHE WAS THE MORE LEFT-WING OPTION. THE DEMOCRATS OPTED TO NOMINATE HER. FLANAGAN'S LEADS HAVE BEEN SOFT. EVEN AMY KLOBUCHAR, HER LEADS HAVE BEEN SOFT. SOMETIMES IN A BLUE-ISH STATE, THE DEMOCRATS ARE UNDERSTATED. REPUBLICANS IN RED STATE RACES. MICHELE TAFOYA, THE FORMER NFL'S SIDELINE REPORTER IS RUNNING AS A REPUBLICAN CANDIDATE. I WANTED TO FLAG THAT ONE, IT DOES NOT SEEM QUITE AS FOREIGN AS TO OTHER PLACES. THE POLLS HAVE BEEN SOFT FOR DEMOCRATS IN MINNESOTA. GOVERNOR TIM WALZ IS REALLY UNPOPULAR. THE SOCIAL SERVICES SCANDAL HAS BEEN A PROBLEM FOR DEMOCRATS. SOMETHING TO WATCH. I THINK FLANAGAN IS STILL FAVORED. JOE: KYLE KONDIK, GREAT TO HAVE YOU BACK WITH US. 13 DAYS TO GO. MANAGING EDITOR OF CRYSTAL BALL THAT THE UNIVERSITY OF VIRGINIA.