Trump’s Grip on GOP Slips as Midterm Worry Sets In

>> THIS IS "BALANCE OF POWER" LIVE FROM WASHINGTON, D.C. JOE: TONIGHT ON THE ROAD AGAIN. THE PRESIDENT BEGINS HIS 32 DAYS OF TRAVEL BEFORE THE MIDTERMS WITH STOPS IN OKLAHOMA AND TEXAS. HOW EFFECTIVE IS DEEP RED CAMPAIGN BLITZ WILL BE REMAINS TO BE SEEN. WE WILL DISCUSS IN THE DEBRIEF STRAIGHT AHEAD. APPLYING PRESSURE. AS AFFORDABILITY REMAINS FRONT AND CENTER, EUROPEAN NATIONS ARE HOLDING EMERGENCY DIESEL TALKS AMID PRESSURE FROM THE WHITE HOUSE TO RELEASE FUEL RESERVES. PART OF A PUSH TO EASE PRICES AND HEAD OFF A POSSIBLE U.S. EXPORT BAN. DAN BROUILLETTE JOINS US TO DISCUSS. FOLLOW THE MONEY. THE TOP ECONOMIST RAISING ALARMS OVER WHAT AGENTIC AI COULD MEAN FOR BANKS, WARNING YOU CAN MAKE IT MUCH EASIER FOR CONSUMERS TO MOVE THEIR MONEY IN SEARCH OF BETTER RETURNS. WE WILL TALK WITH FDIC CHAIR TRAVIS HILL ABOUT WHETHER AI CAN POSE A RISK TO THE STABILITY OF THE BANKING SYSTEM. FROM WASHINGTON, D.C. TO OUR TV AND RADIO AUDIENCES WORLDWIDE, WELCOME TO "BALANCE OF POWER." I'M JOE MATHIEU ALONGSIDE KAILEY LEINZ. KAILEY: THE PRESIDENT ON THE ROAD, EMBARKING ON A MULTISTATE CAMPAIGN TOUR WITH HIS PARTY'S PROSPECTS GROWING DIMMER. BOTH TRUMP AND VICE PRESIDENT VANCE ARE MAKING THE ROUNDS. WHILE THE PRESIDENT IS STUMPING FOR CANDIDATES IN THE WEEKS BEFORE AN ELECTION IS NOT NEW, SPENDING THIS MUCH TIME IN REPUBLICAN STRONGHOLDS IS, UNDERSCORING THE DIFFICULT POSITION THE GOP COULD FIND ITSELF IN 33 DAYS FROM NOW. WITH THE PRESIDENT DELIVERING THIS SOBERING MESSAGE TO VOTERS AND MEMBERS OF HIS PARTY JUST YESTERDAY. PRESIDENT TRUMP: YOU HAVE GOT TO VOTE. YOU HAVE TO THINK. EVEN IF YOU DON'T LIKE SOMEBODY SO MUCH, IT DOESN'T MATTER. IT IS A VOTE FOR GOOD THINGS. KAILEY: JOINING US FROM THE WHITE HOUSE IS BLOOMBERG'S KATE SULLIVAN. THE PRESIDENT IS IN TEXAS AS WE SPEAK. HE LANDED A SHORT TIME AGO AND WHEN HE WAS ASKED WHY HE IS VISITING THERE AND OTHER RED STATES, HE SUGGESTED IT IS OUT OF RESPECT. WHY IS HE CHOOSING THE PLACES HE IS? KATE: REPUBLICANS ARE PLAYING DEFENSE RIGHT NOW. THE PRESIDENT IS KICKING OFF HIS CAMPAIGN TRAVEL, GOING TO RED STATES WHICH REALLY UNDERSCORES THE ANXIETY REPUBLICANS ARE FEELING NOW ABOUT ALL THEIR RACES, INCLUDING AN RELIABLY RED STATES. THE PRESIDENT WAS IN TEXAS EARLIER TODAY. HE'S HEADING TO AN OKLAHOMA RALLY LATER TONIGHT. HE IS TRYING TO SHORE UP HIS BASE. THE PRESIDENT IS HEAVILY INVOLVED AND GOTTEN VERY PERSONALLY INVOLVED IN THE MIDTERM ELECTIONS. IT IS UNCLEAR IF REPUBLICAN CANDIDATES REALLY WANT HIM TO. IF EVERY CANDIDATE THINKS THAT WILL REALLY HELP THEIR CANDIDACY, FOR IT MIGHT HURT IT. HE WAS CAMPAIGNING EARLIER WITH KEN PAXTON, HIS PICK FOR THE U.S. SENATE IN TEXAS. THE NEW YORK TIMES REPORTED ON PAXTON MAKING COMMENTS ABOUT HOW TRUMP'S MIDTERM CONVENTION WHEN THE PRESIDENT HELD THIS MIDTERM ELECTION CONVENTION WHERE HE SPOKE BOTH NIGHTS, WHETHER THAT -- SAYING THAT WAS REALLY NOT -- IT HAD HURT HIM AND HURT OTHER REPUBLICANS RUNNING ENCLOSED RACES. THE PRESIDENT APPEARED WITH KEN PAXTON EARLIER TODAY AND THIS IS COMING AT A TIME WHEN TRUMP'S APPROVAL RATINGS ARE QUITE LOW. REPUBLICANS ACROSS THE COUNTRY ARE HAVING DISAGREEMENTS AND THERE'S A BACKLASH WHEN IT COMES TO TRUMP'S HANDLING OF THE ECONOMY, HIS HANDLING OF THE IRAN WAR, HIGH GAS PRICES, IMMIGRATION HAS BECOME A BIG ISSUE. THIS HARD-LINE IMMIGRATION POLICY THAT THE TRUMP ADMINISTRATION IS CARRYING OUT. THE EXTENSIVE DEPORTATION RAIDS. AND ALSO SOMETHING WE HAVE TALKED ABOUT, NEW DATA CENTERS. A LOT TO UNPACK THERE. JOE: THAT IS FOR SURE. AS THE PRESIDENT LIKES TO SAY, THE WAR WITH THE RUN WILL END IMMEDIATELY AFTER THE MIDTERMS. THE UNITED STATES IS STILL PREPARING FOR SOMETHING ELSE IT SEEMS WITH NEWS THAT A THIRD AIRCRAFT CARRIER GROUP WITH SOME 10,000 MEN AND WOMEN ABOARD IS STEAMING ITS WAY TOWARDS THE MIDDLE EAST. THIS IS THE TEDDY ROOSEVELT THAT MAY SOON BE IN THEATER DEPLOYED NEAR RON. CAN YOU TELL US ANYMORE? KATE: THE PENTAGON IS SENDING A THIRD AIRCRAFT CARRIER STRIKE GROUP. THERE ARE ALREADY TWO POSITIONED IN THE REGION AND THIS ONE WOULD ADD UP TO 10,000 MORE TROOPS IN THE REGION, GIVING THE PRESIDENT MORE OPTIONS WHEN IT COMES TO MILITARY ACTION AND MORE FIREPOWER. THEY ARE EXPECTED TO ARRIVE AT THE END OF NOVEMBER. TRUMP SAID HE COULD RESUME STRIKING IRAN AFTER THE MIDTERM ELECTIONS. HE'S MADE THIS COMMENT PUBLICLY AND THIS COMES AFTER TRUMP HAD REJECTED A PROPOSAL BY IRAN FOR A SEVEN-DAY CEASEFIRE. JOE: KATE, THINK YOU SO MUCH. BLOOMBERG'S KATE SULLIVAN. DIESEL PRICES REMAIN HISTORICALLY HIGH BECAUSE OF THE WAR WITH IRAN. FIVE EUROPEAN NATIONS ARE HOLDING EMERGENCY TALKS OVER INCREASING PRESSURE FROM THE WHITE HOUSE TO RELEASE THEIR STRATEGIC FUEL RESERVES IN A BID TO SIDESTEP A BAN ON U.S. DIESEL EXPORTS. ONE REPORT IS CLAIMING ENERGY SECRETARY CHRIS WRIGHT IS ASKING THE EU TO RELEASE 120 MILLION BARRELS OF DIESEL OVER 180 DAYS. U.S. TRADE JAMIESON GREER HAD THIS MESSAGE FOR LEADERS WHEN HE JOINED BLOOMBERG EARLIER. AMBASSADOR GREER: WE KNOW THE PRICES ON DIESEL ARE HIGH. IT'S A ONE-TIME SPIKE. THE EUROPEANS ARE SITTING ON RESERVES OF DIESEL. OUR SENSE WOULD BE THERE SHOULD PROBABLY RELEASE SOME OF THESE IF THEY ARE FEELING THEY ARE HAVING A SPIKE IN EUROPE. THE PRICE IS HIGHER IN EUROPE THAN IT IS IN THE U.S. JOE: JOINING US IS FORMER ENERGY SECRETARY DAN BROUILLETTE IN STUDIO TODAY AND WATCHING TERRY. -- IN WASHINGTON. SIX DOLLARS 38 CENTS. HE USED TO HAVE A THREE HANDLE. WOULD THIS DO ANYTHING TO MAKE A DIFFERENCE AS LONG AS THE STRAIGHT IS IN THIS CONDITION? SEC. BROUILLETTE: YOU HAVE TO ADDRESS BOTH OF THAT IS WHAT THE PRESIDENT IS TRYING TO DO. THE STRAIT IS IMPORTANT. WE HAVE TO OPEN THE STRAIT. THAT IS WHY THE THIRD CARRIER GROUP MIGHT BE HEADING IN THAT DIRECTION. THE NAVY IS DOING A GREAT JOB OF ESCORTING SHIPS THROUGH THE STRAIT. IN THE NEAR TERM THE RELEASE OF SOME OF THESE RESERVES COULD BE HELPFUL. EUROPE DOES SET ON A FAIR AMOUNT OF RESERVES AS JAMIESON GREER POINTED OUT. THE U.S. DOES AS WELL. PERHAPS THEY WILL BE LOOKING AT THAT. THE GENERAL APPROACH IS TO LOOK AT EVERY TOOL AVAILABLE AND MAKE THEM AVAILABLE TO THE MARKETPLACE. KAILEY: WE CONSIDER THE SITUATION IN THE STRAIT . WE HAVE SEEN ANALYSIS FROM VARIOUS WALL STREET SHOPS THAT SAY THE FLOWS ARE ACTUALLY GETTING BACK UP TO NEAR PREWAR LEVELS. IF THAT IS THE CASE, HOW ARE WE STILL SEEING THESE ELEVATED DIESEL PRICES? WHAT IS A LAG TIME BETWEEN HAVING FLOWS RESUME AT THAT LEVEL AND ACTUALLY SEEING THEIR REDUCTION IN PRICES AT THE RETAIL LEVEL? SEC. BROUILLETTE: THE NUMBERS ARE TRENDING UPWARDS. NO QUESTION ABOUT THAT. WE WENT FROM FOUR TO 6 MILLION BARRELS A DAY TO 89 OR 10 TO 12. WE HAVE SEEN DAILY SPIKES AS HIGH AS 17 AND 18 OR 20, WHICH ARE PREWAR LEVELS. WHAT THE MARKET IS LOOKING AT IS THAT THOSE LEVELS ARE ACHIEVED WITH THE SUPPORT OF THE U.S. NAVY. IT IS THE ESCORTS THAT ARE PROVIDED THE PROTECTION TO THE SHIPS THAT ALLOWS THEM TO GO THROUGH. THE MARKET SUGGESTS MAYBE THAT CANNOT BE A LONG-TERM SOLUTION. THAT CANNOT BE FOR YEARS AND YEARS ON END. DURATION IS WHAT THE MARKET IS LOOKING AT. ONCE THE STRAIT IS OPEN AND PERCEIVED TO BE PERMANENTLY OPEN, WE WILL SEE PRICES RELAX AND COME DOWN RATHER DRAMATICALLY. JOE: WHEN YOU LOOK AT THE RESEARCH FROM JP MORGAN AND GOLDMAN SACHS POINTING TO NEUTRAL LEVELS HERE, CRUDE OIL PRICES ARE STILL RISING TODAY AS YOU BOTH REFERRED TO BUT THE REFINING BOTTLENECK IS A COMPLETELY DIFFERENT STORY. WHETHER YOU ARE TALKING ABOUT DIESEL, JET FUEL, OR GASOLINE, WE COULD GET CRUDE OLA FLOYD -- FLOWING ALL DAY LONG BUT IT MIGHT MAKE A DENT IN DIESEL PRICES. SC. BROUILLETTE: THERE IS AN IMPORTANT PROCESS THAT SOMETIMES IS MISSED IN THE CONVERSATION. PRODUCTION IS IMPORTANT BUT YOU HAVE TO REFINE THE PRODUCT. IN THIS CASE IT IS DIESEL. REFINING CAPACITY IS CONSTRAINED IN THE UNITED STATES. WE ARE ROUGHLY 98% UTILIZATION RATES. NOT MUCH ROOM TO EXPAND UNLESS YOU BUILD NEW REFINERIES WHICH IS DIFFICULT TO DO. WE HAVE TAKEN RUSSIA OFF WITH UKRAINE MORE. IN THE ANNOUNCEMENTS BY CHINA THEY MAY POTENTIALLY CONSIDER SOME EXPORT BANS A REFINED PRODUCT TAKES EVEN MORE PRODUCT OFF THE MARKET. ALL THE WHILE DEMAND STAYS STEADY, PERHAPS EVEN CLIMBING. THE SCARCITY IN THE MARKETPLACE IS WHAT IS DRIVING THE PRICE OF DIESEL UPWARD. THAT HAS TO BE ADDRESSED. IT'S AN INFRASTRUCTURE PROBLEM. WE HAVE TO BUILD MORE REFINERIES. WE HAVE TO BUILD MORE PIPELINES TO GET THE CREW TO THE REFINERIES. KAILEY: ON THAT SCARCITY AND RUSSIA WHICH ENACTED A BAN ON DIESEL EXPORTS, CHINA LOOKING AT BANS, PRESIDENT TRUMP SAYS UNITED STATES IS TALKING ABOUT THIS. HE'S DISCUSSING IT WITH HIS ADVISERS. IF YOU WERE ADVISING HIM NOW, WHAT WOULD YOU TELL HIM ABOUT THE IDEA? SEC. BROUILLETTE: IT'S A BAD IDEA. THERE'S NO QUESTION ABOUT THAT. I THINK THAT IS WHAT THEY HAVE ARGUED INTERNALLY. THE REASONS FOR THAT IS, YOU KNOW, THE BARREL OF OIL CONTAINS SEVERAL DIFFERENT PRODUCTS. DIESEL, GASOLINE, ASPHALT, ALL THOSE THINGS FROM ONE BARREL OF OIL. YOU CANNOT MAKE GASOLINE WITHOUT MAKING DIESEL. WHEN YOU BAN DIESEL, SURPLUS BUILDS IN THE UNITED STATES, WHICH COULD TEMPORARILY SUPPRESS PRICING LOCALLY BUT AT SOME POINT THE REASON WE EXPORTED BECAUSE WE REFINE MORE THAN WE CONSUME. WHEN STORAGE RUNS OUT WE HAVE A BIG PROBLEM AND THEY START TO REDUCE PRODUCTION HERE IN THE U.S., WHICH RAISES THE PRICE OF GASOLINE. YOU CANNOT MAKE GASOLINE WITHOUT MAKING DIESEL. IF YOU HAVE NO PLACE TO PUT THE DIESEL, WE DON'T PRODUCE ANYTHING AT ALL. JOE: THE TREASURY SECRETARY SAID IT IS TWO WEEKS BEFORE IRAN WENT INTO A HOLE NEW -- WHOLE NEW ECONOMIC REALITY WHEN ALL THE OIL IS SOLD TO CHINA AND NOTHING ELSE IS COMING OUT OF THE PERSIAN GULF. DO YOU AGREE THAT INFLECTION POINT IS REAL? AT THAT POINT DOES THE U.S. HAVE MORE LEVERAGE AT THE TABLE? SEC. BROUILLETTE: I DON'T KNOW WHETHER IT IS TWO WEEKS, THREE WEEKS, FOUR WEEKS. HE'S GOT MORE INFORMATION THAN I DO SO PERHAPS -- JOE: ALL OF THIS THAI LIMES -- TIMELINES ARE BEFORE THE MIDTERM. SEC. BROUILLETTE: I KNOW WE ARE NEAR. THE NAVAL BLOCKADE IS VERY EFFECTIVE IN THE REGIME IS BEGINNING TO FEEL THE EXTREME PRESSURES ON THEIR ECONOMY. YOU LOOK AT THE PRICE OF THE CURRENCY, THE AVAILABILITY OF PRODUCTS. THEIR IMPORTS ARE PROBABLY HALF OF WHAT THEY WERE FIVE OR SIX WEEKS AGO. THE BLOCKADE IS IN FACT WORKING IN FACT WORKING AND IT'S THAT PRESSURE THAT WILL -- JOE: WILL THAT MAKE IRAN MORE DANGEROUS OR MORE MALLEABLE? SEC. BROUILLETTE: I THINK IT IS MORE MALLEABLE, AND THAT IS THE GOAL. KAILEY: THAT IS THE GEOPOLITICAL SITUATION WHICH IS OBVIOUSLY A HUGE CONTRIBUTED TO SOME OF THE ISSUES WE ARE TALKING ABOUT WITH ELEVATED PRICES. YOU TOUCHED ON ANOTHER ONE. WE HAVE LIMITED REFINING CAPACITY. MANY PEOPLE POINT THE FINGER AT THE NECESSITY OF PERMITTING PERFORMED TO EASE THE PROCESS AROUND THAT EVER THE ELSE. WE SAW A DEAL STRUCK IN THE SENATE BEFORE THE LEFT TOWN. THIS IS BIPARTISAN. YOU HAVE SHELLEY MORE CAPITAL -- MOORE CAPITO IN THE WHITE HOUSE SINGING THE SAME SONG. SEC. BROUILLETTE: PERMITTING IS A CHALLENGE. ALAN ARMSTRONG IS A GREAT FORMER CEO. LEADING THE EFFORT ALONG WITH THE SENATORS YOU MENTIONED. HIS QUOTE IS THE BEST I'VE HEARD. IF IT TAKES LONGER TO BUILD THE REFINERY THAN THE PRODUCT, WE HAVE A PROBLEM. I WOULD SUGGEST IT IS AN INCREMENTAL STEP TO THE OVERALL PROBLEM. IN THE UNITED STATES WE ARE PROUD OF OUR JUDICIAL SYSTEM. THE CHALLENGE IS IF YOU HAVE A PERMIT, YOU STILL ARE GOING TO GET SUED. YOU MIGHT GET SUED MULTIPLE TIMES. PERMITTING REFORM HAS TO BE ACCOMPANIED BY JUDICIAL REFORMS AS WELL. THAT IS THE ULTIMATE ANSWER. I LOOK FORWARD TO WHAT THE SENATE IS DOING AND I HOPE THEY PASS THE BILL AND MOVE FORWARD AND KEEP CONSIDERING OTHER ELEMENTS. JOE: WE HAVE A DEAL THAT COULD EMERGE IN THE LAME-DUCK SESSION. WHAT HAPPENS IF WE GET MORE PIPELINE? IT WOULD TAKE YEARS TO OPEN A NEW REFINERY, CORRECT? IT DOES NOT CHANGE THE RULES. SEC. BROUILLETTE: THESE ARE NOT SHORT-TERM ANSWERS. YOU CANNOT BUILD A REFINERY IN A WEEK AND WE ARE NOT GOING TO. LET'S NOT PRETEND OTHERWISE. DON'T PRESENT THAT AS AN ANSWER TO THE NEAR-TERM PROBLEM. THE NEAR-TERM PROBLEM IS TO OPEN THE STRAIT OF HORMUZ I GET THESE CHOKEPOINTS UNDER CONTROL AND GET THE OIL FLOWING WHERE IT NEEDS TO GO. IT IS TO SOLVE THE EQUATION BETWEEN RUSSIA AND UKRAINE. ONCE WE DO THAT, THEN YOU START TO SEE THE NEAR-TERM SOLUTIONS. THE LONG-TERM SOLUTIONS STILL REMAIN WE NEED INFRASTRUCTURE. KAILEY: FORMER ENERGY SECRETARY DAN BROUILLETTE WITH US IN OUR WASHINGTON, D.C. STUDIO. THANK YOU FOR JOINING US. IN MARKETS, STOCKS KICKING OUT THE NEW TRADING MONTH ON THE RIGHT FOOT WITH THE S&P 500 SNAPPING A THREE-DAY LOSING STREAK. THE BOND MARKET FINDING ITS FOOTING AMID THE HISTORICALLY TENSE STRETCH. WE TURNED OUT TO POWER BOOST WITH NORAH MULINDA WHO JOINS US FROM WORLD HEADQUARTERS IN NEW YORK. NORAH: -- AS WE LOOK AT THE BOND MARKET. 10-YEAR TREASURY YIELD COMING DOWN FROM ITS HIGHEST SINCE 2002. WE ARE ALSO SEEING THE 10 YEAR AT A 5.4 -- 5.24%. BUT WE DID GET COMMENTARY OUT OF THE FED POSTURE FOR SINCE SAYING THERE MIGHT BE MORE TIME BEFORE ANOTHER HIKE. THE NEXT CATALYST ON THE DOCKET IS TOMORROW, THE MONTHLY JOBS REPORT. MAYBE IT WILL GIVE MORE OF AN INDICATION AS TO WHETHER THE FED NEEDS TO HIKE AGAIN LATER THIS YEAR, OR IF WE HAVE MORE WIGGLE ROOM. WHILE THIS IS GOING ON, THE AI TRADE STILL RUNNING HOT. A COUPLE NAMES I'M KEEPING AN EYE ON MIKE BROADCOM ENDING LOWER BY MORE THAN 2%. WE DID GET NEWS THE COMPANY LETTING IT DROP UP TO 24 BILLION DOLLARS AS A SUPPLIER AND FINANCER. UP HIGHER BY 3%, AND WE SAW A GUIDE COMING OUT OF THIS COMPANY AS IT RELATES TO AI MEMORY DEMAND CONTINUING TO BOOM. THIS STOCK HAS BEEN ON A TEAR UP BY ABOUT 280% AS OF TODAY'S CLOSE. A CENSURE, THIS WAS A BIG GAINER IN THE MARKET. TECHNOLOGY CONSULTING IS IN FOCUS. THE STOCK SEEING ITS BIGGEST DAY EVER, A GREAT GAIN. BOOKINGS BEATING EXPECTATIONS. FEARS ABOUT THE AI DISRUPTION MIGHT BE ALLAYED AS TO WHETHER THE COMPANY IS ABLE TO CAPITALIZE ON SOME OF THE AI OPPORTUNITIES. WE DID GET NEWS AFTER THE POST MARKET. POTENTIALLY THE FACT THE U.S. IS AWARDING BEYOND UP TO 24 POINT $4 BILLION IN A FIVE-YEAR CONTRACT TO PRODUCE STANDARD MISSILE SIX. THIS IS ACTUALLY AN ANTI-AIR AND ANTI-SURFACE WARFARE MUNITION ACCORDING TO THE NAVY. JOE: THANK YOU FOR THE UPDATE, NORAH MULINDA LIVE IN NEW YORK. COMING UP, COULD THE ROAD TO CONTROL OF CONGRESS RUN THROUGH FLORIDA? WE WILL SPEAK WITH THE DEMOCRATIC CANDIDATE LOOKING TO NOTCH A WIN-WIN RETIRED NAVY CAPTAIN DALTON JOINS US ON BLOOMBERG TV AND RADIO. JOE: IT IS BALANCE OF POWER ON BLOOMBERG TV AND RADIO. ALONGSIDE KAILEY LEINZ, I'M JOE MATHIEU. PRESIDENT TRUMP'S HOME STATE OF FLORIDA EMERGING AS A POTENTIAL TROUBLE SPOT FOR REPUBLICANS. DEEP RED FLORIDA. WITH THE COOK POLITICAL REPORT SHIFTING THE GOVERNOR'S RACE FROM LIGHTNING REPUBLICAN TO LEAN REPUBLICAN GIVING DEMOCRATS A POTENTIAL OPENING WITH 33 DAYS TO GO. THE PARTY IS HOPEFUL MOMENTUM COULD EXTEND TO CANDIDATES ACROSS THE STATE. INCLUDING THE DEMOCRATIC CANDIDATE FOR FLORIDA'S SEVENTH CONGRESSIONAL DISTRICT. THE NAVY CAPTAIN AND FORMER NASA CHIEF OF STAFF WHO JOINS US FROM FLORIDA. IT IS GREAT TO HAVE YOU WITH US. THIS IS THE DISTRICT CURRENTLY HELD BY CONGRESSMAN CORY MILLS, WHO LOST HIS PRIMARY TO RYAN ELIJAH, WHO WE HAVE INVITED TO THE PROGRAM, JUST TO GIVE OUR AUDIENCE A REMINDER ON WHERE WE ARE. DID HE MAKE YOUR DISTRICT COMPETITIVE? HOW DOES A DEMOCRAT WIN IT? >> FOR ME IT HAS NEVER BEEN ABOUT ONE MAN. I'VE SPENT MY LIFE IN PUBLIC SERVICE 24 YEARS IN THE NAVY AND NAVY RESERVE, I WORKED FOR BILL NELSON, THE LAST STATEWIDE ELECTED SENATOR, A FOREIGN AFFAIRS AND VETERANS SERVICES -- SERVICES. GOT TO HELP LEAD NASA. 16,000 FOLKS, RESEARCHERS, SCIENTISTS, ENGINEERS, ASTRONAUTS. 14 DIFFERENT CENTERS ACROSS THE STATE SHOWING THE WORLD WHAT AMERICA CAN DO WHEN WE WORK TOGETHER. I WOULD LIKE TO SEE US GET BACK TO A POSITION WE CAN WORK TOGETHER. WHAT WE HAVE SEEN HIS FOLKS SENT OUT TO WASHINGTON, D.C. THAT HAVE COMPLETELY FORGOTTEN, MAYBE THEY NEVER EVEN KNEW, BUT FORGOT ABOUT THE PEOPLE WHO HAVE ACTUALLY PUT THEM THERE. THIS HAS NEVER BEEN ABOUT ONE MAN, IT IS ABOUT GOVERNMENT AND POWER THAT HAS COMPLETELY ABANDONED US IN FLORIDA AND THROUGH THE NATION AND CONTINUES TO NOT SHOW MUCH OF A CARE FOR IT. >> DOES IT BECOME A HARDER MESSAGE TO SEND WHEN YOU ARE RUNNING AGAINST AN OPPONENT CURRENTLY IN WASHINGTON WHO IS AN INCOME BUT THAT IS ALREADY PART OF THIS EQUATION? HOW DO YOU RUN DIFFERENTLY AGAINST A FORMER NEWS ANCHOR THAN AGAINST AN INCUMBENT CONGRESSMAN? >> STEP ONE OF GETTING MORE RESPONSIBLE REPRESENTATION IN CENTRAL FLORIDA IS ALREADY COMPLETE. CORY MILLS IS THE POSTER CHILD FOR A LOT OF THIS CORRUPTION AND GRAFT THAT WE SEE, AND HE'S GOT EVERY SINGLE BUCKET FILLED, DOMESTIC VIOLENCE PROBLEMS, BUSINESS ETHICS PROBLEMS, CAMPAIGN-FINANCE VIOLATION PROBLEMS, A PROBLEM TELLING THE TRUTH ABOUT HIS MILITARY SERVICE. BUT FLORIDIANS HAVE NO BETTER CHOICE THAN MY CURRENT OPPONENT IN RYAN ELIJAH. HE'S ALREADY GOT AN ETHICS INVESTIGATION -- ETHICS COMPLAINT ABOUT HIDING HIS FINANCES AND HIS FINANCIAL DISCLOSURE REPORT AS A CANDIDATE. HE'S SIGNED FLORIDA'S CANDIDATE PLEDGE ON WHETHER OR NOT THEY INTEND TO TRADE STOCKS WHILE A SITTING MEMBER OF CONGRESS, IT DOESN'T INTEND TO TRADE STOCKS WHILE SITTING IN CONGRESS. AND PRIVY TO INSIDER INFORMATION. HE'S ALSO SAID THE TARIFFS ARE WORKING. I THINK PEOPLE WATCHING YOUR SHOW KNOW THAT IS NOT TRUE. HE SAID THE ECONOMY IS IN A GREAT SPOT. WE HAVE SEEN IN MR. ELY SHOW THERE IS NO BETTER CHOICE THAN CORY MILLS IN TERMS OF TRYING TO TAKE CARE OF THE PROBLEMS WE HAVE IN CENTRAL FLORIDA. JOE: THE SENATE WASN'T ABLE TO PASS A STOCK TRADING BAND BEFORE LEAVING TOWN LATE YESTERDAY, YOU ARE ARGUING THE BAN ON CONGRESSIONAL STOCK TRADING NEEDS TO BE STRENGTHENED. YOU HIGHLIGHTED YOUR OPPONENT, HOW ABOUT PEOPLE IN WASHINGTON? ARE YOU THINKING ABOUT NANCY PELOSI? WHO IS DOING THE TRADING ON CAPITOL HILL THAT HAS YOUR ATTENTION? >> WE HAVE SEEN THROUGHOUT, THE FOLKS I TALKED TO ARE IN DISTRICT SEVEN FED UP WITH PRETTY MUCH EVERYONE IN WASHINGTON, D.C. THAT CONTINUE TO LINE THEIR POCKETS WHILE PICKING HOURS. INDIVIDUALLY, FOLKS ARE FED UP, THEY SEE FOLKS GO TO WASHINGTON AS SOME SORT OF GET-RICH-QUICK SCHEME AND THEIR PERSONAL WEALTH MAGNIFIES. ADDITIONALLY, WE SEEN FOLKS TRADING ON INFORMATION ON THESE PREDICTION MARKETS. I FOR ONE WAS ABSOLUTELY FLABBERGASTED WE WOULD HAVE PEOPLE BETTING ON WHETHER OR NOT OUR AIR FORCE PILOT AND WEAPONS SYSTEMS OFFICER WERE GOING TO COME HOME ALIVE. THESE ARE PEOPLE BETTING AGAINST AMERICA AND OUR BEST INTERESTS ON THESE PREDICTION MARKETS. THAT HAS GOT NO PLACE IN THE LEXICON OF OUR ELECTED OFFICIALS. I HAVE PLEDGED TO ANY OF MY HOLDINGS I HAVE BEEN ABLE TO BUILD UP THROUGH MY NAVY SERVICE AND OTHER WORK ARE GOING TO GO INTO A BLIND TRUST. THAT IS THE RIGHT OPTION FOR PEOPLE. WE HAVE SEEN CONGRESS IS COMPLETELY INCAPABLE OF POLICING ITSELF. WHETHER TALKING ABOUT THESE INSIDER TRADING ENRICHMENT SCHEMES OR THESE CONTINUOUS ETHICS VIOLATIONS WE SEE. >> LEANING ON YOUR SERVICE IN THE NAVY, WE HAVE LEARNED THAT THE USS TEDDY ROOSEVELT WILL BEGIN STEAMING TO THE MIDDLE EAST, A THIRD CARRIER STRIKE GROUP BEING SENT TO THAT THEATER COULD ARRIVE IN LATE NOVEMBER AFTER THE PRESIDENT SAID HE EXPECTS THE WAR WILL NOT END UNTIL AFTER THE MIDTERMS. DO YOU EXPECT THIS COULD STILL BE A GOING CONCERN IF HE WERE TO WIN AND TAKE THE OATS IN JANUARY? >> ABSOLUTELY, IT WILL BE A GROWING CONCERN AND A CONTINUING CONCERN. WE'VE GOTTEN OURSELVES INTO A FOREVER WAR, WITH THIS ONE IN PARTICULAR WITH NO STRATEGIC VALUE, NO DEFINED END STATE. WE ARE PUTTING OUR SERVICEMEN AND WOMEN IN HARM'S WAY WITHOUT ANY REAL GOAL. OUR SERVICEMEN AND WOMEN DESERVE TO KNOW THEY ARE BEING WELL LED OUT OF THE PENTAGON WITH OUR POLITICAL LEADERSHIP. THEY ARE NOT BEING WELL LED. THE FAMILIES THAT CARE FOR THEM SHOULD BE ABLE TO PUT THEIR FAITH AND TRUST IN THE GOVERNMENT. THEY ARE DOING THEIR JOBS WITH ALL THE MATERIAL THEY NEED. IN THE BROADER PICTURE, MULTIPLE DIFFERENT CARRIER STRIKE GROUPS IN AN AREA OF THE WORLD THAT POSES NO THREAT TO OUR HOMELAND RIGHT NOW WHILE WE ARE LEAVING OURSELVES VULNERABLE TO THE ACTORS THROUGHOUT THE GLOBE WHO COULD REACH OUT AND TOUCH US AND DO US HARM. THE WAR IN IRAN HAS NOT ONLY MADE GAS PRICES GO UP, NOT ONLY SINKING OUR ECONOMY AND PUTTING OUR SERVICEMEN AND WOMEN IN HARM'S WAY WITH NO REAL GOAL OR END STATE, IT IS MAKING OUR COUNTRY MORE VULNERABLE AND LESS SAFE. WE'VE GOT TO GET THIS TURNED AROUND BECAUSE IT WILL NOT END IN ONE DAY. >> DEMOCRATIC CONGRESSIONAL CANDIDATE IN FLORIDA, BAIL DALTON. THANK YOU FOR JOINING US. TO HAVE THE PRESIDENT CAMPAIGN IN YOUR STATE OR NOT? WE WILL GET INTO IT IN THE DEBRIEF WITH MARIO PARKER, NEXT. >> THIS IS BALANCE OF POWER ON BLOOMBERG TV AND RADIO. ALONGSIDE JOE MATHIEU, I'M KAILEY LEINZ. WITH JUST OVER A MONTH UNTIL THE MIDTERMS, PRESIDENT TRUMP IS EMBARKING ON A CAMPAIGN BLITZ ACROSS THE U.S., PUTTING HIMSELF FRONT AND CENTER IN THE REPUBLICAN PUSH TO HOLD CONGRESS. SOME INSIDE THE PARTY ARE INCREASINGLY WARY OF JUST HOW VISIBLE THEY WANT THE PRESIDENT TO BE, ESPECIALLY IN RACES WHERE HIS PRESENCE COULD PROVE MORE A LIABILITY THAN AN ASSET. THE LATEST POLLING UNDERSCORES THE RISK. A SURVEY FINDS 65% OF AMERICANS BLAME TRUMP'S POLICIES MORE THAN OUTSIDE FACTORS FOR PERSISTENTLY HIGH COSTS. MARIO PARKER IS JOINING ME FOR MORE IN THIS WEEK'S DEBRIEF. THE PRESIDENT SAID HE'S GETTING OUT THERE BECAUSE HE FEELS LIKE REPUBLICANS ARE NOT SELLING THE MESSAGE. DO REPUBLICANS FEEL LIKE THE PRESIDENT IS THE ONE TO SELL IT? >> THE THOUGHT COMING FROM THE WHITE HOUSE CLEARLY IS TACTICALLY, THE ONLY CARD THE WHITE HOUSE HAS TO PLAY IS TO PUT TRUMP ON THE CAMPAIGN TRAIL. STILL, SOME OF THESE ECONOMIC ACCOMPLISHMENTS HE'S BEEN TOUTING IN RECENT DAYS. TO BE FAIR TO THE PRESIDENT AND REPUBLICANS, THERE IS A STORY TO TELL IN TERMS OF THE STOCK MARKET IS AT A HIGH, UNEMPLOYMENT AT HISTORICAL LOWS. HE POINTS THAT OUT AS WELL. ALL OF THAT BEING SAID, AS OF THE POLLING REVEAL, AMERICANS FEEL AS THOUGH HIS STEWARDSHIP OF THE ECONOMY HAS NOT MET THE EXPECTATIONS THAT THEY HAD FOR HIM WHEN THEY SENT HIM BACK TO THE WHITE HOUSE IN 2024. TO ANSWER YOUR QUESTION, IT IS NOT REALLY THAT GREAT OF AN ASSET AT THIS POINT. SOME REPUBLICANS ARE DISTANCING THEMSELVES FROM THE PRESIDENT. >> I WOULD ASK IF THERE IS A DISCONNECT BETWEEN THE WHITE HOUSE FEELS LIKE THE BEST STRATEGY, SENT OUT THE CLOSER VERSUS WHAT OTHERS IN NATIONAL PARTY LEADERSHIP FEEL IS THE BEST STRATEGY, KEEP HIM ON THE SIDELINES OF PISA POPULAR? >> THAT WILL NOT HAPPEN WITH PRESIDENT TRUMP. EVEN THOUGH THERE IS SOME RESIGNATION WITHIN THE WHITE HOUSE OF THIS GRIM POLITICAL MOMENT AND WHAT THEY ARE FACING A NOVEMBER, THAT YOU CAN TRY TO DO YOUR BEST TO STEM THOSE LOSSES. IF IT TURNS OUT TO BE A TURNOUT ELECTION, WE WILL SEE WITH THE PRESIDENT'S SCHEDULE GOING INTO THOSE RED STATES, EVEN THOUGH THERE SHOWS A DEFENSIVE POSTURE, THE THOUGHT IS HE CAN DRIVE UP THE NUMBERS OF THE FAITHFUL. HE HAS BEEN SAYING IN RECENT WEEKS, JUST PRETEND I'M ON THE BALLOT. >> HE'S BEEN SAYING PRETEND I'M ON THE BALLOT AND SUGGESTED YOU SHOULD VOTE FOR A CANDIDATE, EVEN IF YOU DON'T LIKE THEM. WHAT ARE WE LEARNING ABOUT HOW THE PRESIDENT MIGHT BE FEELING ABOUT HIS PARTY'S PROSPECTS? HOW IS HE PROCESSING THE NOTION THERE MIGHT BE SIGNIFICANT LOSSES? >> PROCESSING IS A GOOD WORD. WE HAD A STORY OUT WITH CATHERINE LUCY IN WHICH BEHIND-THE-SCENES WE UNDERSTAND THE PRESIDENT DOES UNDERSTAND THE ROUGH SITUATION THEY ARE FACING AND HAS FLASHED SOME OF THE FRUSTRATION AS WELL. EVEN AS HE'S PRONOUNCED THE POLLS ARE FAKE, HE'S BEEN RESIGNED AND THE FEELING IN THE WHITE HOUSE IS THEY ARE RESIGNED TO A HIGH LIKELIHOOD AT THE VERY LEAST THAT DEMOCRATS COULD BE TAKING THE HOUSE. YOU'VE SEEN HIM HAVE HINTS OF THAT WHERE HE SPOKE WISHFULLY ABOUT THE CHALLENGES THE PARTY IN POWER TYPICALLY HAS. HE SAID I THINK ON AIR FORCE ONE, I DON'T KNOW WHY THE PARTY OF POWER ALWAYS LOSES ONE CHAMBER OF CONGRESS AND THE MIDTERMS, BUT THAT IS THE WAY IT IS. I'M BEFORE THE CONVENTION, WE UNDERSTOOD THEY WERE FEELING PRETTY HIGH AND FLYING PRETTY HIGH, BUT POSTCONVENTION, WE HAVE SEEN THE POLLING. KANSAS, ALASKA, SOUTH CAROLINA, IOWA, OHIO, TEXAS. SOME OF THE GOP BASTIONS HAVE HAD SOME SLIPPAGE. >> IT IS NOTEWORTHY THE TEXAS SENATE REPUBLICAN NOMINEE, KEN PAXTON, ACCORDING TO ALREADY OBTAINED BY THE NEW YORK TIMES, SUGGESTED HIS NUMBERS DROPPED AFTER THE CONVENTION. HE WILL BE IN TEXAS WITH TRUMP TODAY. CURIOUS INTERACTION. >> IT WILL BE. ONE OF THE STRATEGISTS I SPOKE WITH WHO IS RUNNING THESE MIDTERM CAMPAIGNS, HE DID TELL ME THEY FEEL AS THOUGH THE CONVENTION WAS A MISSED OPPORTUNITY, AND WHILE THERE WAS A LOT OF POP, THERE WAS NOTHING TO DISTINGUISH THE CONTRAST WITH DEMOCRATS COMING OUT OF THE CONVENTION. A SCORECARD OF WHAT THE FUTURE WOULD LOOK LIKE UNDER A REPUBLICAN MAJORITY CONTINUING IN WASHINGTON, D.C. AND CREATING THE CONTRAST BEYOND POINTING FINGERS AT THE DEMOCRATIC SOCIALIST MOVEMENT. >> MARIO PARKER. FIND HIS LATEST STORY ON THE TERMINAL. THAT WAS THIS WEEK'S DEBRIEF. JOE: JD VANCE ACKNOWLEDGING THE REPUBLICAN PARTY CONCERNS TODAY, TELLING CROWDS IN FLORIDA WINNING THE RACE IS IN THE SUNSHINE STATE WILL NOT BE EASY. WE JUST SPOKE WITH A DEMOCRAT RUNNING IN FLORIDA, WHICH NOW THE REPUBLICAN STRONGHOLD IS SHOWING SIGNS OF A TIGHTENING RACE FOLLOWING POLLING IN TEXAS, IOWA, AND OHIO SHOWING DEMOCRATS GAINING GROUND. THE MAP FORCING REPUBLICANS TO SPEND HEAVILY IN STATES THEY EXPECTED TO HOLD COMFORTABLY. STRETCHING RESOURCES ACROSS A GROWING NUMBER OF COMPETITIVE RACES AND RAISING STEAKS FOR THE GOP COURT CHALLENGE THIS FALL, GETTING TRUMP VOTERS BACK TO THE POLLS WHILE BALANCING HOW TO WORK HIS PRESENCE INTO THE ELECTION FOR JOINING US, OUR POLITICAL PANEL, MEGAN HAYES, A FORMER ASSISTANT, ALONGSIDE SARAH CHAMBERLAIN, THE PRESIDENT CEO OF THE REPUBLICAN MAIN STREET PARTNERSHIP. THIS STORY HAS CHANGED SO WILDLY AND SO QUICKLY OVER THE PAST MONTH THAT I WANT THE REALITY CHECK FROM BOTH OF YOU. ARE WE SERIOUSLY TALKING ABOUT A BLUE WAVE? RACES IN TEXAS AND OKLAHOMA ARE ACTUALLY BEING CONTESTED BY DEMOCRATS? YOU'RE SUPPOSED TO SAY NO, JOE. >> I TALKED TO THEM REGULARLY, THE FRONT LINERS. I DON'T THINK THERE IS A WAVE, THERE IS A PROBLEM ACROSS AMERICA, BUT I DON'T SEE A BLUE WAVE COMING FOR MANY DIFFERENT REASONS. ONE BEING THERE'S IS NOT A LOT OF SEATS THAT CAN FORCE A 30 OR 40. BUT I WOULD SAY 10 TO 12, IT IS WINTER LOSE AT THIS POINT. THINGS CAN TURN AROUND, BUT IT IS NOT GREAT. >> THAT IS IN THE RANGE OF FIVE TO 15. >> IT IS A SIMILAR RANGE. I WOULD ASK FOR YOUR ASSESSMENT AS WELL AS A DEMOCRAT. >> I DON'T THINK THERE WILL BE A HUGE BLUE WAVE LIKE EVERYONE IS TALKING ABOUT, BUT WE CANNOT UNDERESTIMATE HOW MAD PEOPLE ARE, DEMOCRATS AND REPUBLICANS ARE VERY ANGRY WITH THE STATE OF THE ECONOMY, SO HOW THEY TURN OUT TO VOTE AND IF THEY STAY HOME IS YET TO BE SEEN. IT WILL DETERMINE WHO WINS. I THINK DEMOCRATS WILL TAKE BACK THE HOUSE, BUT WE WILL END UP WITH A FIVE OR SIX ESTATE MAJORITY. JOE: HOUSE MAJORITY BACK IN HOUSE MAJORITY FORWARD. HOUSE DEMOCRATS OUTSIDE GROUPS RAISING $230 MILLION IN THE QUARTER. WE CLOSED IT YESTERDAY SO WE WILL GET A SHOWER OF NUMBERS HERE FROM CAMPAIGNS AND COMMITTEES IN THE NEXT COUPLE OF DAYS. THIS IS A BIG DEAL FOR DEMOCRATS. WE HAVE TALKED ABOUT THE DISPARITY IN FUNDRAISING. IS A STORY CHANGING? >> THERE IS A HUGE DISPARITY. A BIG DEAL DEMOCRATS ARE OPENING THEIR WALLETS AND A HUGE TESTAMENT TO MIKE SMITH, PRESIDENT OF THE HOUSE MAJORITY WHO HAS BEEN POUNDING THE PAVEMENT FOR A VERY LONG TIME TO GET THESE OWNERS TO OPEN THEIR WALLETS AND PROVE THEY HAVE A STRATEGY TO OPEN THE HOUSE. I WOULD LIKE TO GIVE HIS TEAM CREDIT FOR THE WORK THEY ARE DOING. >> WHILE THEY WERE ABLE TO RAISE THIS SUM OF MONEY, REPUBLICANS HAVE MORE OF IT THAN THEY DO. HOW DO YOU PUT THAT MONEY TO WORK IN THE FINAL STRETCH? 33 DAYS LEFT TO GO. HOW MUCH DOES MONEY BITE YOU? >> A LOT STILL. PEOPLE ARE UNDECIDED. A SMALL PORTION WILL DETERMINE WHICH WAY THE ELECTIONS GO. THEY ARE DOING BOOTS ON THE GROUND, PUTTING PEOPLE OUT THERE, KNOCKING ON DOORS, DOING MAIL, TV, SOCIAL MEDIA, THEY ARE DOING ALL OF THE ABOVE. IT IS FOCUSED ON THE 5% OR 6% IN EVERY UNDECIDED DISTRICT. >> YOU ARE MAKING ADS AND WORKING ON HONING MESSAGING. BUT HOW IMPORTANT IS IT FOR YOU TO START RESERVING ADS TO BLOCK OTHER ADS EVEN IF YOU DON'T HAVE AN AD TO AIR? IS IT WHERE YOU'RE AT NOW? >> REPUBLICAN MAIN STREET DOES THAT. AT THE SAME TIME, WE ARE AIRING A LOT OF ADS. WE ARE PERSONALIZING THEM TO EACH OF THE DISTRICTS. THAT IS VERY IMPORTANT, NOT GENERIC FOR EVERY DISTRICT, BECAUSE EVERY DISTRICT IS A LITTLE BIT DIFFERENT. WE HAVE LOCAL PEOPLE TALKING ABOUT HOW MUCH THEY LOVE THEIR MEMBER OF CONGRESS, THAT IS KIND OF MY STRENGTH WE ARE RUNNING RIGHT NOW. >> I WOULD IMAGINE PRESIDENT TRUMP IS TRYING TO CREATE CONTENT FOR ADS AS HE MAKES THESE TRIPS ACROSS THE COUNTRY. AS HE TRAVELS TO TEXAS AND OKLAHOMA, HE'S DOING IT WITHOUT A TELEVISION POOL BECAUSE CNN WAS SUPPOSED TO HAVE THE DUTY AND THEY WERE BLOCKED FROM CONDUCTING IT. DOESN'T MAKE HIS EFFORTS LESS EFFECTIVE IF HE DOESN'T HAVE THIS TELEVISED COVERAGE THE WAY HE NORMALLY WOULD? >> NO, WE ARE NOW SITTING HERE TALKING ABOUT LACK OF TELEVISION COVERAGE RATHER THAN THE CRAZY THING HE THINKS AFFORDABILITY IS A HOAX. I WOULD RATHER TALK ABOUT THAT IF WE ARE BEING HONEST. BUT WE ARE TALKING ABOUT SOMETHING ELSE, ANOTHER PROBLEM HE'S CREATED. I WANT TO GO BACK TO ONE THING THAT WAS SAID. WHEN WE ARE TALKING ABOUT THE ADS PEOPLE ARE MAKING, WHERE IT MATTERS IS DEMOCRATS NEED TO PERSUADE VOTERS, REPUBLICANS NEED VOTERS TO TURN OUT AND DEMOCRATS NEED THAT AD SPACE. THAT IS WHERE THE MONEY WILL COME INTO PLAY. WHEN YOU HAVE TO PERSUADE VOTERS, YOU HAVE TO COMMUNICATE WITH PEOPLE WHO DON'T ALREADY KNOW YOU. THAT IS DIFFERENT THAN TRYING TO TURN OUT YOUR BASE. LACK OF MONEY IS BIG FOR DEMOCRATS. >> DIFFERENT STRATEGIES. AS WE LOOK AT THE AP POLL THAT YOU AND MARIO REFERRED TO, WHEN IT COMES TO HANDLING OF THE ECONOMY AND TRUMP'S HANDLING OF THE COST OF LIVING, LOOKING AT THE RESULTS HERE, APPROVE, 17% DISAPPROVE, 82%. I DON'T KNOW WHAT YOU NEED TO SEE IN TERMS OF HANDLING OF THE ECONOMY AS OPPOSED TO THE COST OF LIVING, THOSE NUMBERS SKEW A LITTLE BIT AS WELL. THIS IS THE WHOLE ELECTION. WHAT IS A MAIN STREET OR SAY IN THE FACE OF NUMBERS LIKE THAT? >> WE TRY AND FOCUS ON OTHER ISSUES, THE TAX CUTS, NO TAX ON TIPS, BUT WE RECOGNIZE IT IS A HUGE PROBLEM AND THAT IS WHY WE ARE PERSONALIZING IT. WHAT HAS YOUR MEMBER DONE? PEOPLE SAYING MY MOTHER HELPED ME WITH THIS AND THAT. THE MEMBER IS ONE OF US. THAT IS WHY EACH DISTRICT AND PERSONALIZING TO THE MEMBER SPECIFICALLY. BUT IT IS TOUGH. IT IS A TOUGH CLIMATE. >> BACK TO YOUR POINT ABOUT PERSUASION, ONE THING FOR A BOATER TO SAY I DON'T APPROVE OF HOW THE PRESIDENT'S HANDLING THE ECONOMY, ANOTHER TO SAY I THINK A DEMOCRAT WILL DO A BETTER JOB. HOW DO DEMOCRATS CONVINCE VOTERS THEY WILL BE BETTER ON THE COST OF LIVING ISSUE OR THEY CAN EFFECTUATE CHANGE WHEN TRUMP WILL BE PRESIDENT FOR TWO MORE YEARS? >> IT IS A TOUGH GO. DEMOCRATS ALSO HAVE A TOUGH GO. THEY REMEMBER WHEN THEY DID NOT THINK THEY WOULD HAVE A GOOD SOLUTION FOR THE ECONOMY EITHER. I THINK THIS IS WHERE DEMOCRATS WILL CHALLENGE AND WHERE IT IS A LOT OF ANTI-INCUMBENCY. IT IS NOT JUST ALL REPUBLICANS THAT WILL LOSE THEIR SEATS. SOME WILL LOOSE TO NEW REPUBLICANS BECAUSE IT IS VERY ANTI-INCUMBENCY CLIMATE OUT THERE. WHEN DEMOCRATS DO TAKE BACK THE HOUSE, AND THEY ARE IN THE MAJORITY, AND I DON'T THINK THERE WILL BE IN THE MAJORITY IN THE SENATE, BUT IF THEY WERE, THEY NEED TO RUN ON SOLUTIONS. UNDERSTAND OVERSIGHT AND FIGHTING BACK CORRUPTION, BUT THEY NEED TO WALK AND CHEW GUM AT THE SAME TIME OR IT WILL IMPACT THE 2020 CAMPAIGN AND THEY WON'T HAVE A CHANCE BECAUSE VOTERS WILL NOT TRUST THEM. THEY ARE SAYING WE ARE THE BETTER OPTION, IF YOU'RE NOT GOING TO DO SOMETHING, YOU ARE NO LONGER THE BETTER OPTION. >> THE SPENDING IN THE TEXAS SENATE RACE HAS BEEN STAGGERING. JAMES TALARICO BEING OUTSPENT BY GROUPS SUPPORTING KEN PAXTON BY 5-1. IN ONE CASE, A NEW TEXAS PACK SPENT $131 MILLION IN JUST 17 DAYS TO BOOST KEN PAXTON. IF YOU BELIEVE THE POLLS, HE'S STILL LOSING. IS THERE A LIMIT TO WHAT THE PARTY AND AFFILIATED GROUPS WILL SPEND, OR IS THE SEAT THAT IMPORTANT THAT IT IS NOT? >> HE STILL DOWN FIVE, THAT IS ON THE INTERNALS AND EVERYTHING. THERE SHOULD BE A TIME WERE WE SAY WE ARE NOT GOING TO SPEND ANYMORE. THE PROMPT -- PROBLEM IS TRUMP HANDPICKED HIM. I THINK EVERYONE WILL GO TO THE END, DUMP HUNDREDS OF MILLIONS OF DOLLARS MORE INTO THE RACE BECAUSE TRUMP KIND OF CREATED THE PROBLEM. IF CORN AND WAS HERE, WE WOULD NOT BE TALKING ABOUT TEXAS. BECAUSE KEN PAXTON IS, IT IS A PROBLEM. A LOT MORE MONEY BEING DUMPED IN. IT WILL COST MAINE AND OHIO AND KANSAS, THE MONEY WILL NOT BE AT THE LEVEL IT SHOULD HAVE BEEN. >> WAS KEN SPECHT AT -- KEN PAXTON SPEAKING THE TRUTH IN THE LEAKED VIDEO THAT THE CONVECTION HURT, NOT HELPED? >> WE DID NOT SEE THAT IN OUR POLLING. I DID NOT SEE THAT. BUT HE CLEARLY DID OR HE WOULD NOT HAVE SAID IT. >> HE DID SEEM LIKE HE WAS BEING HONEST. AS THE PRESIDENT SAYS, HE'S THE BEST ATTORNEY GENERAL AND IN THE HISTORY OF AMERICA. DOESN'T DRESS OUR TALK TERRIBLY WELL. WANT TO WEIGH IN ON THAT? >> I THINK KEN PAXTON IS JUST AS CORRUPT AS DONALD TRUMP AND THAT IS A HUGE PROBLEM. I DON'T THINK DONALD TRUMP GOING ANYWHERE WILL HELP ANYONE IN A FRONTLINE DISTRICT. THAT IS WHY YOU SEE HIM IN OKLAHOMA AND NOT OHIO OR IOWA. >> HE WILL BE IN OHIO SATURDAY. >> OUR POLITICAL PANEL, THANK YOU FOR JOINING US. COMING UP, BORROWING COSTS ON THE RISE AS THE RULES FOR AMERICA'S BIGGEST BANKS ARE BEING REWORKED. THE FDIC CHAIRMAN JOINS US ON PRESSURES FACING CONSUMERS, BUSINESSES IN THE U.S. ECONOMY. THIS IS BALANCE OF POWER ON BLOOMBERG TV AND RADIO. HOUSEHOLDS, AND COMPANIES. THE TOUGHER BACKDROP IS PUTTING FOCUS ON THE SAFEGUARDS DESIGNED TO PROTECT THE FINANCIAL SYSTEM JUST AS THE FEDERAL RESERVE MAKES BIG CHANGES TO A STRESS TEST FOR THE NATION'S LARGEST BANKS. JOINING US TO DISCUSS THIS AND MORE IS THE CHAIR OF THE FBI SEE HERE WITH US IN OUR WASHINGTON, D.C. STUDIO. IT IS GOOD TO SEE YOU. WHEN WE CONSIDER THE OVERALL LANDSCAPE, THE STRESSES THAT APPEAR IN THE BOND MARKET, AT LEAST THE GOVERNMENT BOND MARKET WHERE YIELDS ARE THE HIGHEST THEY HAVE BEEN IN DECADES, DO YOU SEE A REASON FOR CONCERN? DO YOU LOOK AT WHAT IS HAPPENING AND GET NERVOUS? >> IT IS GREAT TO BE HERE. I THINK WHEN WE LOOK AT BOND YIELDS AND THE INTEREST RATE ENVIRONMENT, IT IS WORTH LOOKING BACK WHAT HAPPENED IN 2022 AS A DISTINCTION FROM WHERE WE ARE TODAY. LEADING UP TO THE FAILURE OF SILICON VALLEY BANK, THE FED FUNDS RATE WENT UP HIGH AROUND 500 BASIS POINTS OVER ABOUT ONE YEAR. BY COMPARISON, 10 YEAR YIELD UP ABOUT 130 BASIS POINTS SINCE EARLIER THIS YEAR. FED FUNDS RATE A SMALLER AMOUNT. SO I THINK IN TERMS OF THE OVERALL MAGNITUDE, THE INCREASE IN RATES IS A FRACTION OF A FEW YEARS AGO. AND WHAT WE ARE SEEING NOW IS LONGER ARE GOING UP BY A LARGER MAGNITUDE THAN SHORTER TERM RATES. BANKS ARE GENERALLY IN THE BUSINESS OF BORROWING SHORT AND LENDING LONG. THAT IS USUALLY A POSITIVE STORY FOR THE BANKING INDUSTRY. IN COMPARISON IN 2022 RIGHT SIDE OF A SUDDEN AND DRAMATIC INTEREST RATE SHOCK. >> WE WANT TO TALK ABOUT AI, PART OF OUR CONVERSATION EVERY DAY. WHEN IT COMES TO BANKING, IT IS UNIQUE, THE INDUSTRY THAT I THINK, CORRECT ME IF I'M WRONG, HAS ADOPTED AI AND INTEGRATED AI MORE THAN ANY OTHER IN THE NAME OF EFFICIENCY. NOW THERE IS A WORRY THAT THESE AI AGENTS IN THE AGE OF NEWS COULD CREATE A DISRUPTION THAT WOULD ALLOW PEOPLE TO MOVE THEIR MONEY FROM DAY TO DAY, BASED ON WHO'S GOT THE BIGGER RETURNS. IT COULD BE A DEPOSIT FLIGHT BASED ON THE REAL CONCERNS. WE TALK ABOUT RULES OF THE ROAD TO PROTECT CONSUMERS. DO BANKS NEED RULES CREATED TO PROTECT THEMSELVES? >> IT IS WORTH RECOGNIZING AT THE OUTSET FOR CONSUMERS OR BUSINESSES TODAY THAT WANT TO MAXIMIZE YIELD ON THEIR DEPOSIT ACCOUNTS, THAT IS VERY EASY TO DO. THERE'S A LOT OF WEBSITES OR YOU CAN SEE ALL SORTS OF HIGH-YIELD ACCOUNTS IN DIFFERENT BANKS. A NUMBER OF SERVICES YOU CAN GIVE FUNDS TO THEIR SERVICES AND THEY WILL PLACE IT IN A HIGH-YIELD ACCOUNT FOR THE CUSTOMER. THERE ARE MANY CONSUMERS AND BUSINESSES THAT DON'T DO THAT FOR A VARIETY OF REASONS. ESPECIALLY TALKING ABOUT BUSINESS ACCOUNTS WITH SIGNIFICANT AMOUNTS OF FUNDS WHEN YOU LOOK AT THE OVERALL BANKING INDUSTRY. OFTEN TIMES VARIOUS SERVICES THEY ARE GETTING, THERE'S A BROADER RELATIONSHIP. A LOT GOES INTO THE DECISION OF WHERE TO PUT FUNDS. I THINK IT IS WORTH HAVING THAT PERSPECTIVE THINKING ABOUT THE FUTURE OF SUPER INTELLIGENCE AND THESE TYPES OF TOOLS. >> YOUR POINT IS UNDERSTOOD THE INFORMATION IS THERE, THE CONCERN WOULD BE AI AGENTS WOULD BE ABLE TO ACCESS IT MORE QUICKLY AND DO IT WITH MORE VELOCITY. THE CHIEF ECONOMIST AT APOLLO PUT OUT A NOTE THAT SAID IF EVERY HOUSEHOLD USED AI AGENTS TO OPTIMIZE RETURN ON CASH BALANCES, BANKS COULD LOSE A LARGE SHARE OF THE CHEAP DEPOSITS THEY RELY ON TO MAKE LOANS, WHICH WOULD BE A PROBLEM FOR THE ENTIRE FINANCIAL SYSTEM. HIS NOTE WAS ENTITLED IS AN AGENTIC BANK RUN COMING. CAN YOU RULE IT OUT? >> WE ARE NOT IN THE BUSINESS OF RULING OUT ANY RISKS. I THINK THAT REQUIRES A DRAMATIC MOVE IN TERMS OF PEOPLE, PRIORITIZING IN THEIR LIVES, AND DELEGATING THAT DECISION-MAKING AUTHORITY TO THESE TYPES OF TOOLS. WHAT WE SEE TODAY IS A LOT OF CUSTOMERS VALUE OTHER THINGS WHEN THEY DECIDE WHERE TO PLACE THEIR BANK DEPOSITS. >> TO YOUR POINT ON DELEGATING ON THESE TOOLS, WOULD YOU ADVISE ANY DEPOSIT OR TO SHARE THAT INFORMATION WITH AN AI MODEL OR NAI AGENT? >> THAT IS NOT FOR ME TO ADVISE CUSTOMERS ON. I THINK THESE TYPES OF TOOLS HAVE TREMENDOUS PROMISE AND TREMENDOUS VALUE. BUT WHY DO PEOPLE REACH A POINT FEELING COMFORTABLE GETTING THAT KIND OF DECISION-MAKING AUTHORITY, THAT WILL HAVE TO BE UP TO INDIVIDUAL CUSTOMERS. JOE: WE WONDER IF THERE WILL BE A DAY OF PRODUCTS LIKE THESE AND MAYBE WE WILL GET THERE. BUT I HAVE TO GO BACK TO THE BANK FAILURES FROM A COUPLE OF YEARS AGO WHICH WE WILL ASSOCIATE WITH KAILEY LEINZ TRIUMPHANT RETURN TO WASHINGTON, D.C., YOU CAN REMIND ME OF ALL OF THE NAMES. FIRST REPUBLIC. THERE WAS A QUESTION ABOUT FDIC BANK INSURANCE. I THOUGHT THAT 250,000 DOLLARS MIGHT BE A BIT POINT. AT SOME POINT, WE WERE TALKING TO LAWMAKERS ABOUT RAISING THAT NUMBER. IT NEVER HAPPENED IN THE AGE OF INFLATION. SHOULD IT? >> OVER THE COURSE OF THE FTSE HISTORY, CONGRESS HAS REVISITED THAT DEPOSIT INSURANCE LIMIT MANY TIMES. IT HAS BEEN ALMOST 20 YEARS SINCE THE LAST TIME CONGRESS RAISED IT. WE HAVE BEEN ENGAGED WITH VERY OFFICES ON CAPITOL HILL ABOUT POTENTIAL DEPOSIT INSURANCE REFORM. THERE'S A STRONG CASE TO BE MADE FOR EITHER EXPANDING COVERAGE THROUGH RAISING THE RATE OR CONSIDERING A CATEGORY OF DEPOSIT ACCOUNTS THAT WOULD HAVE A HIGHER RATE. THERE ARE LOTS OF DIFFERENT ALTERNATIVES ON HOW TO DO THAT. IT IS SOMETHING WE CONTINUE TO ENGAGE WITH CAPITOL HILL OFFICES ON. JOE: WILL YOU ENSURE CRYPTO WALLETS? >> I DO NOT THINK WE INSURE BANK DEPOSITS, AND IT SHOULD STAY THAT WAY. >> I WONDER WHAT YOU HEAR FROM BANKS AT THIS POINT OF THE ADMINISTRATION WHICH CAME IN PROMISING DEREGULATION HAVING DELIVERED ON A GREAT DEAL OF THAT AS WE CONSIDER THE DIFFERENT CAPITAL REQUIREMENT STRUCTURE PUT FORWARD BY THE FED, OR RULES YOU HAVE ACTED ON AROUND M&A AND TRYING TO MAKE THAT PROCESS EASIER. WHAT ARE BANKS ARE STILL ASKING OF YOU? WHAT IS LEFT ON THE LIST? >> WE HAVE A LONG AND ALWAYS GROWING LIST OF RULES WE WANT TO MODERNIZE AND FIX. FROM OUR PERSPECTIVE, WE ARE FOCUSED ON WHAT WE THINK IS RIGHT FOR THE BROADER ECONOMY AND THE BANKING SYSTEM AND CONSUMERS AT LARGE. WE HAVE A LOT OF THINGS WE'RE WORKING ON, FINALIZING OUR CAPITAL RULES WE HAVE PROPOSED EARLIER THIS YEAR, POTENTIAL CHANGES TO THE LIQUIDITY RULES, THE NEW PROPOSAL WE AT THE FTSE ISSUED ON THE BANK MERGER REVIEW PROCESS. WE ARE LOOKING AT VARIOUS THINGS RELATED TO DEPOSIT INSURANCE ASSESSMENT RULES. WE HAVE A LOT OF THINGS WE CONTINUE TO WORK ON, BUT ALL OF IT IS AN EFFORT TO STRIKE THE RIGHT BALANCE BETWEEN ENSURING A SAFE AND SOUND BANKING SYSTEM, BUT ENABLING BANKS TO DRIVE ECONOMIC GROWTH. >> DO YOU THINK THE WORK GETS HARDER IF DEMOCRATS ATTAIN MAJORITIES IN THE HOUSE AND SENATE AFTER THE MIDTERMS? >> I DO NOT. WE HAVE AN AGENDA WE THINK WILL WITHSTAND THE TEST OF TIME. I THINK WE WILL CONTINUE TO PURSUE THAT REGARDLESS OF THE ENVIRONMENT WE ARE IN. >> GOOD TO HAVE YOU WITH US, DON'T BE A STRANGER. THE CHAIRMAN OF THE FDIC, TRAVIS HILL WITH US LIVE. I'M JOE MATHIEU ALONGSIDE KAILEY LEINZ. THANK YOU FOR SPENDING PART OF YOUR THURSDAY WITH US. YOU ARE ALMOST AT THE WEEKEND. AS WE GET CLOSER, CHECK OUT THE WASHINGTON EDITION NEWSLETTER ON THE TERMINAL AND ONLINE. A LOT TO FOLLOW UP ON AS THE PRESIDENT GETS BACK ON THE ROAD. IT IS WHERE WE STARTED OUR COVERAGE AND WHERE WE FIND HIM NOW. OKLAHOMA TODAY. >> LATER. HE'S IN TEXAS, AND OKLAHOMA LATER TONIGHT. THEN OHIO SATURDAY, HE WILL BE IN NEBRASKA. HE PROMISED THE TOUR, IT IS UNDERWAY. AS HE TAKES THE STAGE, HE'S CALLING OUT THE REPUBLICAN SENATE NOMINEE, KEN PAXTON, SAYING I'M REALLY HERE FOR PAXTON, WE NEED HIM SO BADLY. I GUESS HE'S PUTTING ASIDE PAXTON'S LEAKED AUDIO COMMENTS ABOUT THE PRESIDENT AND REPUBLICANS. JOE: I GUESS THE PRESIDENT HAS BEEN KNOWN TO TAKE -- TAKE THINGS PERSONALLY, BUT SOMETIMES THAT IS NOT ALLOWED. LOOK AT THE MAP WHERE THE PRESIDENT WILL BE HEADING. RUBY RED ROAD TOUR UNDERWAY ON BEHALF OF THE PRESIDENT. THANK YOU FOR JOINING US. WE WILL HAVE A LOT MORE TO TALK ABOUT TOMORROW. AND THAT WILL BE FRIDAY. >> NOT JUST ANY FRIDAY, A JOB STAY WITH CRUCIAL ECONOMIC DATA AS WE LOOK AHEAD TO A FED RATE DECISION LATER THIS MONTH, BECAUSE IT IS NOW OCTOBER. HAPPY OCTOBER, EVERYONE. RABBIT RABBIT. HE SAID IT FIRST THING THIS MORNING. JOE HAS BAD LUCK. THANK YOU FOR BEING WITH US. WE WILL SEE YOU TOMORROW ON BLOOMBERG TV AND RADIO.