Transcripts For BLOOMBERG Bloomberg Markets Balance Of Power 20240712

Times. Nikki haley, some of her experiences, Donald Trumps muscular Foreign Policy at how she managed that as the u. N. Rep. Those were two biggies. Bigother aspect was a presence of africanamericans on the agenda. Walker, tim scott, all spoke yesterday and gave their pitch as to why the Republican Party should receive more support in the black communities. And one of things, thing that was not there, you referred to it at the end of our coverage late last night. There was writing going on after and unarmed black man had been shot by police. He was shot like seven times by a police officer. Was not much mention and he called out the National Guard. Situation and a lot of destruction of property. These are things that were ignored as you point out at the much discussion actsbout restraining these of violence and donald trump being the law and order candidate. Virtually nothing was said by any africanamerican speakers about social justice issues. Different from the democratic convention, they left out a portion of the program. You wonder, where africanamerican speakers trying to recruit black people into the republican fold or just trying to give comfort to the predominately white supporters of donald trump, that they were also ok with this approach to law and order . . Really kind of question what they were after. I thought the night was predominantly focused on the theyand we will see where go from here. Thank you. Tonightbe back with us after our coverage which begins at 10 00 p. M. Eastern time. Concerns were reignited about policing over the country across the country and once again, how things like this can still happen. Goldstein is chair of the Nonprofit Organization advocating for criminal justice. She searched for 21 years on the Police Department and roast the ranks to lieutenant. Give us a sense of how it happens. Policing works. How do we have the incident still within unarmed black man shot seven times in the back . I think it is a situation where Law Enforcement has not learned lessons of how to build relationships with communities. Particular, police communities, because of drug war policy, systemic institutional issues. I watch the video just like with george floyd and it struck me we continue to use state authorized violence to solve problems that police necessarily should not involved in. Further the issue, we do not place thatisms in really deal with aftereffects of the ntsb which goes in and does of a plane crash, and they set what the criminal Justice System could have been done to prevent what was we have only seen that by the time we get there, are we already in the wrong place . Absolute. No doubt from the beginning that Law Enforcement officers lost control of the situation. Regardless what happens for the videotape of the shooting, what happens the actions the officers took were incredibly dangerous. You do not grab someone by their shirt with guns out. He fire seven rounds, which i actuallyt this point, four hit the vehicle it them. It is an incredibly dangerous situation. Is a lack of training restrain people using minimal force necessary. Int sometimes has to occur Law Enforcement. There is a lack of training on communication and a the flipside, you have deadly year with Law Enforcement shootings for the arbery , a former lawenforcement connection, breonna taylor, philando castile, where Law Enforcement has not acted in the fashion training, sanctity of life. We have to upend policing to fix this. Was sending a message to Police Officers that they have to rein themselves in. Chicago has been out of control from time to time into new york, we have so many shootings that you cannot believe it. Is it possible to keep streets safe but also make sure we are not abusing some of the people we are trying to apprehend . Absolutely. Is the milliondollar question. As we have the reallocation of resources into programs that include mental health, and other evidencebased programs we know reduce crime in the harm of the criminal Justice System, we also have to work with all the Public Health safety stakeholders, you still in fact resources a too fast, you will have a policing situation and is i amare still seeing not trying to minimize what is think we have to be more strategic from a policing perspective and take a stand that we are part of the problem, we can be part of the solution, but we have to work with stakeholders. That has been lost in policing for a long time. They believe they are the only experts for how to create Community Health and safety and because of that, they have not been inclusive of stakeholders in the community to see how they want to be policed. A complex situation. We have to invest the money. I want to listen to the father of the girl in parkland, florida. This is what he said. Farleft democrats in the School District made the shooting possible because they implemented what they called Restorative Justice. Policy really just blames teachers for student failures and puts kids and teachers at risk and makes shootings more likely. It was built as a pioneering approach to safety. Across the country. Despite what we heard. Restorative justice has a long you have towhat understand is Restorative Justice is about meeting the and it is based on the rehabilitation and the reason it has been successful across the country is because they have the ability to change dramatically, as do adults. What i think we will see in the future is better investments into programs like it Restorative Justice that allows people Second Chances and i am not certain what Restorative Justice has to do with the parkland shooting. But iwere a lot of issues would not blame it on Restorative Justice. It is great to have you with us. The lawair of enforcement action partnership. Theng up, what is president s plan for the economy in a second term . This is balance on Bloomberg Television and radio. David this is balance of power and we turn now to Mark Crumpton for bloomberg first word news. Mark thank you. First Lady Melania Trump will step into the spotlight at the Republican National convention tonight. She will make the case for her husbands reelection from the white house rose garden she just helped to renovate. 2016ech during the convention criticized when pastors were found that were similar to what Michelle Obama said in her speech into thousand eight at the Democratic National convention. A speech writer later took the blame. A second night of violence between police and protesters after a black man was shot sunday by police in an incident incident caught on video. One hundred 25 members of the National Guard were deployed. Federal agencies are increasing tear, took the bullets and other equipment as Racial Justice protests continue around the country. Sincest 28 million for may 25th when in unarmed black man george floyd, in police custody, sparked protests. Soared 114 percent over the same time last year. In spain, the Prime Minister tos is resisting pressure order another National Lockdown and is instead asking regional authorities to come up with a response as Coronavirus Infections surge. It was his first Public Comment in three weeks. A number of daily infections in spain hovered close to a fourmonth high last week, leading a surge across europe. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Tonight marks the second night of the Republican National convention. The chief washington correspondent Kevin Cirilli spoke with Ronnie Mcdaniel earlier about what to expect tonight. The firstl hear from lady tonight, which will be very exciting. Venue changes every day. The overall theme is that this is the greatest country on earth andwe want the opportunity freedoms we enjoy as americans available forever and that is at risk if we choose joe biden or kamala harris. The president is trailing just behind joe biden. We are still a ways out from election day and he is still in striking distance in the polls. President trump according to the wall street journal is up despite the handling of the pandemic. When you look at those two you reconcile that and use it as an opportunity to tell the republican story on the handling of the pandemic . You have seen democrats try to politicize the pandemic and use it as a way to criticize the president and most americans recognize this is never happened in the country. It is a global pandemic. The president took Decisive Action cutting off travel to china early on. He is addressing that. Joe biden said he will shut down america again. Paycheckve paycheck to. Hollywoodob biden celebrities and the political elite want that. On the economy, how will the Republican Party try to make some inroads in the swing districts . Is it law and order . Both and the economy. Law and order and the economy will bring back suburban voters especially when they see joe biden embrace the policies of Bernie Sanders which are very extreme. There is a reason they did not talk about the policies during the convention. Not appeal to do mainstream americans. For those whore come here illegally, meaning it will increase the cost of health care. When they say they will giveaway four year college degrees, that is not true. And i think suburban women, saying joe and bidens policies will bankrupt the country. That will start at 10 00 p. M. Tonight. David republicans are basing much of their case for returning President Trump to office on what he was doing with the economy before the pandemic hit. Raising the question of how much of that was deregulation and how much of it was a massive tax cut. When we started talking to business people, they told us we would rather have regulatory relief for tax cuts. Neednot know that we another tax cut. I believe he thinks we do. And he knows more about it than i do. I know one thing. We do not need a big tax increase right now. David welcome back david mcintosh. Great to have you here. Do you agree with Rudy Giuliani that we do not need tax cuts so much as more deregulation . Rudy pointed out a big contrast. Trump wants to have further tax cuts and biden wants to increase them, which would tank the economy. I think we need both. More deregulation, he is right, we would free up american businesses to get started again, hire people back. If we could trim off a couple weusand, that is more people could hire back factor faster. Particularly the small and they are the ones who will struggle the most in the shutdown to the economy. I think there is a need for both and im glad President Trump is campaigning on both. To terms withming china do a lot of good . If you look at the record for the first two years, we were growing at a faster pace and things started trailing off and a lot of that is because of the trade war with china. It affect it affected the markets back and forth. Has thethe president long game in mind and we need to have good trade relationships with china but they need to understand, it will not be a oneway deal. They have to start recognizing intellectual property. They started to open up where foreigners could own corporations. Thee a full partner in world economy, they have got to join into basic structures of free markets, where private property manners, to give up the notion that it is all collected property. That is what trump is pushing for. I think that will be good. Tariffs hurt us. I do not think that is a great tool but i think we need to push china to get to a fair and reasonable trading position. Another thing that came up during the convention, i did not hear much for the first three and a half years of the trump administration, school choice. That is being featured heavily now. Why is that all of a sudden more important . We have been pushing it for about a month. It is the realization that a lot of people are facing a huge over 50 of students and schools that were closed or partially closed this fall, parents where they are both working cannot manage them both. We suggested when schools are not being helpful and not working for people or in the innercity, they are just not safe, to send the money directly to the parents, let the parents choose what works for their kids. If we want to do Distance Learning for Public Schools but hire a tutor, let them do that. If they want to pick a private school, charter school, or religious school, let the parents pick that. What we realized is it is now more than just an innercity issue. That an everywhere issue parents need the resources to deal with schools being closed. Something we will hear a lot more about in the rest of the week. We have pushed hard. Fair enough. We will hear a lot more about it. David mcintosh. Coming up, we will keep talking about the president and Term Economic agenda. This is bloomberg. Experience the ultimate sports hub. Where you can find games, news and highlights. All in one place, right on your tv. The xfinity sports zone. Use your voice to search every stat and score. Follow the teams you love. And, even get notifications with breaking news alerts and more. With the xfinity sports zone everybody wins. Now thats simple, easy, awesome. Say xfinity sports zone into your voice remote today. David this is balance of power on Bloomberg Television. President trumps economic record will be front and center as we move toward the election. To take us through that record, welcome former republican representative from california darrell issa. Congressman, thank you for being here. I know you are a fan. Give us your best argument on why President Trump deserves to be renewed in office. Darrell the fact is when President Trump came in, we had a long period of slow growth. He kicked it up with smart moves, tax moves, regulatory moves, and pushing against unfair trade agreements. What he did was restore americas vitality and growth in the pandemic has taken that away growth. The pandemic has taken that away. This offers an opportunity to restore a new that position of leadership and take it to a higher level. As we come out of the pandemic, if america remains positioned as arelobal leader, we likely to get that Competitive Edge in lots of areas, particularly manufacturing. David if you take a look at the first three years of the trump administration, the economy was growing somewhat faster than it did over the average of the obama years. That rate of growth was slowing down somewhat. Are there concerns that because of trade we were not headed for the 4 President Trump promised us . L when you are hitting 3 growth at the end of what had longest period of Economic Growth in modern history, i think it makes sense to say we were extending the cycle and increasing the cycle. The deal with mexico and canada is now in place and is beginning to bear fruit. Our real advances with china, either driving business out of china or driving china to be more fair or both, it is still in its early stages. Certainly waiting to see how this works out because they have wanted to turn china from an unfair trader to a fair trader, but have not been able to do what President Trump has done, which is engage them straightforward. David at least some of that growth, a fair amount was because of pretty large tax cuts that President Trump got through with congress. In order to restore growth, can we afford that kind of tax cut, particularly after we have spent so much money because of the pandemic . Darrell there is no question that we have increased our debt, and debt service will be with us for a long time. Just as reagans tax cuts kept Economic Growth going for a long time and allowed america to revitalize, we can do the same thing. The fact is you can grow your way out of a deficit or tax your way out of it in hopes that it does not stifle growth. I always favor the former. I dont believe we should always be changing our tax code. Right now, we have a progressive tax code in which the top income producers pay more than they have in a very long time, virtually since world war ii. You have the highest true tax the being paid, and yet harrisbiden team wants to dramatically increase it. California wants to add a specific wealth tax. You have a group that wants to increase taxes higher than they ever have been before, versus a president who wants to hold taxes at a rate that we can grow our way out of the deficit. Most americans believe we can grow our way out of it instead of simply saying we are going to stick it to the rich is going to end up with a middleclass paying a bigger share again. The economy will no doubt be front and center this election. We are going to hear from secretary of state mike pompeo tonight. He is going to be coming to us from jerusalem. I expect one thing he is going to talk about is the normalization of relations between israel and the united arab emirates. You know that region well. You have roots in the levent. Darrell i have been going back and forth with leaders for decades there, watching palestinians failed to take opportunities in the past and watching arab leaders failed to engage with israel and grow, theran revitalization under president obama of iran is still being felt. This engagement is to part. It is an engagement with the arab world. It is lining us up against iran in a way in which arab countries have made choices. They can choose to be with us and israel against iran, or they can continue to live in fear of iran. Uae has made this choice, but to ait, saudiut kuw arabia are waiting for a trigger that is going to allow them to weigh in. This is what has been brilliant about the tactic. They know that being aligned with israel really means being aligned with the United States against iran. That is where most of the arab nations want to be. Certainly it is what is going to opportunity to push out the effects of has a hezbollahave of that have captured that country for the last halfcentury. David im going to put you on the spot. You know the region. Who is next . Darrell i believe the statements coming out of lebanon would be true that they would be next if not for hezbollah basically being assassins. It is likely to be in the gulf. Qatar has the easiest path, but i suspect it is just as likely to be kuwait. If they can do a deal, saudi arabia could weigh in. That is the biggest push. David that would be massive. That is fascinating. That is darrell issa, former punishment from california congressman from california. Is poisedicane laura to become a powerful category three storm when it comes ashore along the texaslouisiana coast. Forecasters say it is threatening to inflict 12 billion of damage on the region and potentially shut down 12 of u. S. Refinery capacity for months. Laura will likely bring 115 mileperhour winds as it comes ashore Late Wednesday or thursday. Hundreds of thousands of people are ordered to evacuate. It is a rare reversal for the fda. Commissioner stephen hahn has backed off his claims that an experimental treatment provided benefit for coronavirus patients. Said that blood he says he misspoke. There are no grounds for criminal investigation. He is innate, and a german hospital. Doctors say tests indicate he was poisoned. His allies believe the kremlin is behind the illness of its most prominent critic. Secretary of state mike pompeo is in the middle east, the most senior official to visit sudans last years ouster of its democratic leader, omar albashir. Show u. S. Support for sudans fragile transition to democracy. Secretary pompeo is one of the featured speakers at tonights Republican National convention. Global news 24 hours a day, on air and quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. David coming up, we talk about trump Energy Policy in a second term. This is bloomberg. David this is balance of power on Bloomberg Television and radio. I am david westin. One of the differences between republicans and Democrats Remains Energy Policy with joe biden pledging to move away from fossil fuels. President trump pledging the goal of Energy Independence based on the use of fossil fuels. Committingrged with the trump Energy Policy is dan brouillette. I want to talk to you about trump Energy Policy and the second term, but first, laura looks like it may hit in the gulf of mexico on wednesday. Can you give us an update on the vulnerability of our oil and gas facilities . Dan thank you. But to be with you. We are prepared for this hurricane seemingly moving into the houston area. The houston channel is there, huge refineries down there. Several other important pieces of our oil and Gas Infrastructure are down there. We have a special office at the department of energy that is directed by an assistant secretary responsible for our response. We are working closely with the industry. We feel the industry is well prepared for this type of storm. The president is prepared to make available the Strategic Petroleum reserve. We are doing all we can to ensure we are capable of doing that immediately following the storm. Prepared. Ling we have to watch and wait to see where the storm ends up. David lets move out to california where there have been these brownouts, power going down because it has been very hot. What is going on out there . Is it a fundamental problem . Longcalifornia has a history of getting Energy Policy run. You may recall the blackouts and brownouts from 2001. There was a market issue in that point in time where people were manipulating the market because of the wrong policies california chose to implement. We are seeing some of that replay today. California has decided to move to a 100 Renewable Energy generation world. The challenge with that, when the wind is not blow and the sun does not shine, people want electricity, and it is not there. Their strategy is to borrow or buy electricity from neighboring states like arizona and nevada. The challenge with that strategy is when it is hot in california, it is also hot in arizona and nevada. They may choose to keep their electricity because they would like their hospitals to run and airconditioning to work. There is nothing to sell to california. The leaves california in position of having to turn off the lights in certain portions of the state to meet their energy needs. David that leads us to the fork in the road between democrats and republicans versus renewables on the one hand and relying on fossil fuels. The pew center did a study in june that said 60 of americans are concerned about climate. It heavily skews towards democrats. Can we have a bipartisan Energy Policy in this country . Dan sure. Natural gas is a very clean source. We are developing technology to make it cleaner. We are developing technologies to make carbon intense fuels like coal cleaner. We have had Nuclear Power for the last 70 years, which is entirely emissions free. You can have a renewable base and a Carbon Emissions they slowed. That is the fundamental problem in california. They focus too heavily on Renewable Power like wind and solar at the exclusion of some of the baseload power, which you need in todays world to ensure you have the energy you need when you need it. David President Trumps administration has done a fair amount in trying to reinforce Energy Independence in the United States, relying on fossil fuels. What is left to be done in a second term . Dan we need to continue to build infrastructure. As we have discussed in the past, we have done a great job in america of increasing our production, relying on new technologies like horizontal fracking horizontal drilling and fracking, which have allowed us to increase production of these resources. Our challenge today is getting these products to market, building Pipeline Infrastructure to get into the oceans, the coastline. It is building export facilities to make this available to the rest of the world. We will continue to use these fuels for the foreseeable future, as many as 40 years out. It is important as we do this that we maintain our posture in the world as the number one producer of oil and gas. Policys us foreign options. The notion that we are able to for instance, the secretary of state traveling to sudan today, normalizing relations between sudan and israel, those things could not have happened 40 years ago because we would have been afraid of the reaction in the middle east, and we would have endangered our National Security by putting our oil supply at risk. The fact that we are independent pursue theseus to types of Foreign Policy options. David energy is important for all sorts of reasons, but it is also the source of a lot of employment. One place where republicans and democrats seem to be ships passing in the night is how we are going to create more jobs. We heard Vice President biden say he is going to create millions of jobs by saying he is going to green energy. Which is it . Arent we adding more jobs and Renewable Energy than traditional . Bidensannot comment on campaign. When we look at the technologies that have put us at top of the world in terms of energy production, hydraulic fracking. The u. S. Chamber of commerce tells me if we were to do away with that, we would lose 19 million jobs in the next few years. It is not a question of retraining those people and putting them into renewable technologies. You can do that, and people may be forced to do that if you do away with that technology. The challenge is that the salaries according to the unions we have talked to, the salaries in the oil and gas business are twice what we are seeing in the Renewable Energy space. Suggest youing to might retrain people, but you are also giving them a 50 pay cut. David give us some sense of the investments you are making in new technology. Dan it is enormous. We spent about 16 billion a year in basic science, basic research that leads to these technologies we just discussed. Im excited about what is just over the horizon in terms of advancements for reactors. Smallern the cusp of reactors, higher density Energy Sources connected to microgrids, but also moving beyond Decision Energy Fission Energy to Fusion Energy. David is there a real prospect of Fusion Energy . Dan we have made real progress. We have turned around some of the Management Issues around large facilities in france, but we also have private Sector Companies in the u. S. That have made tremendous advances, general atomic and several others. David thank you so much. That is dan brouillette, the United States energy secretary. Former new york mayor Rudy Giuliani has long supported President Trump, even serving as his lawyer. Last night, we caught up with him for his views on china and the pandemic. Monthshe last three before the pandemic were the strongest ever. Our economy is always good to be cyclical. It is going to do well. Sometimes it will do even better. Right now, the stock market is remarkably doing very well. When i was impressed with was what he was able to produce in the area that the last 20 years we have had real concerns like jobless recovery, recovery with wages not going up. Finally we were getting a recovery that have a lot of jobs and very good wages. The problem with china is going to be one that we either are going to be able to fix, or we may have a longterm issue in straightening out the whole relationship with them. I think we do not emphasize enough, they seem to have been very much behind this whole covid spreading around the world. It certainly originated there. They certainly did not give us the information they should have been giving for the first month and a half, not just to us, but the rest of the world. That is a serious problem. It may be that we are in a chinese regime that is different than we are used to. We thought it was a regime that wanted peaceful rising. We may be involved in a regime that wants world domination. We have got to make a choice as to how we are going to do with that. There may be some economic consequences to that, but you cannot be blind to the fact that this Chinese Government seems different than the Chinese Governments we negotiated a lot of these agreements with. There seemed to be a strong nucleus that wanted to have a peaceful rise. A lot of commentators have said president xi seems to have been more assertive than his predecessors. ,m not aware of any evidence are you, that there was malice of forethought . Rudy i am not aware of any evidence. I believe it originated by neglect. Covid19 has not gone away, although it seems to be quieting down in the United States. There is a lot of concern about a second wave. You have managed difficult circumstances, including in 9 11. That do not to the vaccine people have promised, how is the best way to manage that problem for the United States Going Forward . Rudy i think we have learned a lot from the last four or five months. For example, joe biden said he would follow the science and close down and shut down the country if he had to. If you understand the facts and the science, there would be no reason to close down the entire country, even if it came back. We probably did not have to close down the entire country. Peoplethe impact was on 60 years and older. The idea of closing schools was unnecessary. By focusing on the entire population because we did not know what the real impact was going to be, i think we lost more older people than we should have. Said if you just look at the record of donald j. Trump, he would not have much trouble getting reelected, but there are other aspects in the way he expresses himself. You are close to President Trump. There are other advisors that are very smart that talk to him. Surely you must have said that if you just tone it down, you would do a lot better. Why doesnt he do that . Rudy i worked for president reagan. I remember when he lost the first debate to mondale. Mrs. Reagan said let ronnie b ronnie. At first i used to get nervous about the tweeting, but now i realize that even though every single one of them does not work, this is a remarkable opportunity for him to communicate with his people. Since he isnt i think i am understating this the most beloved by the press, i dont think he gets a fair interpretation. The only way he can overcome that is by direct communication. He is the president who has directly communicate with the public more than anybody else. He has opened a new way for leaders to communicate with their people. David that was part of my interview with Rudy Giuliani, who went on to be a close adviser and supporter of President Trump. Coming up, we will talk with a former democrat who was a senator from alaska, former republican who was a senator from montana. We will talk about the issues we will see tonight. Tonight at 10 00 eastern time, we will be bringing you live coverage of the Republican National convention. We expect to hear from the first lady, melania trump, as well as secretary of state mike pompeo coming to us from jerusalem to talk about that normalization of relations between israel and the united arab emirates. That is all coming up in the next hour. This is balance of power on Bloomberg Television and on bloomberg radio. With firstk crumpton word news. On the second day of their Convention Republicans are expected to speak out on abortion, cancel culture and other issues they believe separate them from the democrats. President is expected to make an appearance. Among the speakers, mike pompeo as well as two of the president s children, eric and tiffany. Iran is promising to cooperate with nuclear inspectors weeks after failing to provide access to two sites. Visiting talks with inspectors were very constructive and a start of a new era. Iran began ignoring limits of its uranium enrichment after President Trump withdrew the u. S. From the landmark 2015 nuclear deal. Hong kong will relax social distancing role starting friday. People will be allowed to eat at restaurants in the evening and they can remove masks when exercising outdoors. Reopened. Ters will be hong kong