>> COMING UP ON BLOOMBERG THIS WEEKEND -- >> A LOT OF PEOPLE

DON'T CALL IT A WAR. I CALL IT A MILITARY CONFLICT

BECAUSE IT'S SMALL POTATOES FOR US.

>> PRESIDENT TRUMP DOWNPLAYS THE SCOPE OF THE IRAN WAR AFTER

MONTHS OF CONFLICT AND AMERICAN DEATHS.

AND AMERICANS PAY THE MOST FOR GAS ON A LABOR DAY WEEKEND EVER.

>> FRESH EFFORTS TO REVIVE RUSSIA-UKRAINE PEACE TALKS.

JARED KUSHNER AND STEVE WITKOFF ARE REPORTEDLY ON THE GROUND IN

MOSCOW.

>> MOVE OVER, DR. DOOLITTLE. RAPID DEVELOPMENTS IN

ARTIFICIAL INTELLIGENCE COULD CHANGE THE WAY WE TALK TO

ANIMALS.

>> THE POTENTIAL TO DO WHAT THEY PREVIOUSLY THOUGHT WAS

IMPOSSIBLE.

[INTRO MUSIC]

>> HAPPY SATURDAY, WELCOME TO BLOOMBERG THIS WEEKEND COMING

TO YOU FROM OUR WORLD HEADQUARTERS IN NEW YORK.

I AM CHRISTINA RUFFINI. I AM JEFF MASON IN FOR DAVID

GURA. WELCOME TO OUR LISTENERS AND

VIEWERS ACROSS BLOOMBERG PLATFORMS ON RADIO, TV,

STREAMING ON BLOOMBERG.COM, AND THE BLOOMBERG BUSINESS APP.

CHRISTINA: JEFF MASON, WE HAVE KIDNAPPED

YOU FROM THE WHITE HOUSE.

I HATE READING THE DATE AND I MAKE DAVID GURA DO IT AND TODAY

I MADE YOU DO IT. EXCELLENT WORK.

30 SECONDS IN, WE ARE GOING TO NOW OUR LISA MATEO WILL UPDATE

US ON HEADLINES. LISA: PRESIDENT TRUMP SAYS HE IS

SENDING HIS TWO GREAT NEGOTIATORS TO RUSSIA THIS

WEEKEND. HE TOLD REPORTERS IN THE OVAL

OFFICE THEY ARE BRINGING A PROPOSAL TO INTO THE WAR.

PRES. TRUMP: STEVE WITKOFF, JARED KUSHNER,

THE TWO GREAT NEGOTIATORS COME THEY HAVE DONE A GREAT JOB, WE

SENT THEM OVER TO SEE WHETHER OR NOT WE CAN GET SOMETHING

DONE. LISA:

THE CONFLICT IN THE MIDDLE EAST, THE PRESIDENT SAID HE

AGREED WITH VICE PRESIDENT JD VANCE'S COMMENTS THAT HE WOULD

NOT DESCRIBE HOSTILITIES AS A "WAR." PRES. TRUMP:

I HEARD WHAT HE SAID. IT'S INTERESTING BECAUSE

THERE'S A LOT OF TRUTH. WE ARE NOT FIGHTING RIGHT NOW.

THERE IS NO FIGHTING. WE ARE TAKING A LOT OF OIL.

WE CONTROL THE HORMUZ STRAIT AND WE CONTROL IT VERY STRONGLY.

LISA: TRUMP CALLED IT A MILITARY CONFLICT AND SAID IT IS VERY

INTERMITTENT AND IT IS "SMALL POTATOES"

COMPARED TO THE WAR IN VIETNAM AND AFGHANISTAN.

THE CONFLICT HAS LASTED MORE THAN SIX MONTHS, COST OVER 37.5

BILLION DOLLARS, AND 18 SERVICE MEMBERS' LIVES.

THE WERE ALSO SPIKED ENERGY PRICES FOR AMERICANS.

THE CURRENT PRICE OF DIESEL HAS HAD A RECORD OF HER TIME OF

$5.88 A GALLON AND HIGHER DIESEL PRICES MEANS HIGHER

TRANSPORTATION COSTS FOR A LONG LIST OF EVERYDAY GOODS.

GAS PRICES HAVE ALSO RISEN AN AVERAGE OF FOUR DOLLARS 14

CENTS A GALLON. THIS DRIVER FROM PHILADELPHIA

SAID SHE HAD TO RETHINK HER TRAVEL PLANS.

>> BECAUSE GUESS HAS BEEN SO EXPENSIVE WE'VE BEEN STAYING

HOME MORE. WE HAVEN'T FELT AS COMFORTABLE

TO TRAVEL AS MUCH AS BEFORE. BEFORE COMING YOU KNOW, GUESS

SKYROCKETED THIS YEAR, WE WEREN'T DOING MORE, LIKE,

WEEKEND TRIPS. LISA: MASSACHUSETTS JUDGE DECLARED A

MISTRIAL IN THE MURDER CASE AGAINST LINDSAY CLANCY.

JURORS CANNOT AGREE IF SHE WAS CRIMINALLY RESPONSIBLE WHEN SHE

STRANGLED HER THREE YOUNG CHILDREN IN 2023.

THE MISTRIAL WILL ALLOW PROSECUTORS TO TRY CLANCY AGAIN.

SHE FACED LIFE IN PRISON WITHOUT PAROLE IF CONVICTED OF

FIRST-DEGREE MURDER. MEMBERS OF HER LEGAL TEAM

VALLOW TO PURSUE A CIVIL CASE AGAINST HER MEDICAL PROVIDERS.

>> WE NEED TO MAKE THINGS RIGHT. WE NEED TO MAKE SURE WHEN THERE

IS -- OF THESE DOCTORS ARE NOT LISTENING TO WOMEN.

LISA: CLANCY REMAINS CHARGED WITH

MURDER AND WILL CONTINUE TO BE HELD IN A PSYCHIATRIC HOSPITAL

UNTIL THE CASE IS RESOLVED. CHRISTINA:

REALLY STRONG OPINIONS ON THAT CASE EVEN THROUGHOUT OUR TEAM.

PRESIDENT TRUMP, AS WE MENTIONED, IS DOWNPLAYING THE

CONFLICT. OVERNIGHT IRANIAN NEWS OUTLETS

REPORTED NEW EXPLOSIONS IN OIL PRICES CLIMBED TO WELL OVER $90

A BARREL. DIESEL EXTENDED ITS RECORD

HIGH, NOW AT FIVE DOLLARS 88 CENTS A GALLON, REGULAR GAS, OF

COURSE, IS ALMOST ONE DOLLAR HIGHER THAN A YEAR AGO. JEFF:

HERE'S MORE OF WHAT THE PRESIDENT SAID IN THE OVAL

OFFICE. PRES. TRUMP: THERE IS NO FIGHTING.

WE ARE TAKING OUT A LOT OF OIL. WE CONTROL THE HORMUZ STRAIT

AND WE CONTROL IT VERY STRONGLY. WE DID A HIT ON CERTAIN AREAS

AROUND THE HORMUZ STRAIT, WE TOOK OUT THE RADAR, AS YOU

KNOW, YOU KNOW THAT VERY WELL. WE TOOK OUT SOME AIRCRAFT.

WITH TAKE OUT SOME OTHER THINGS THAT PROTECT FOR THEM -- USED

TO PROTECT THE HORMUZ STRAIT WHEN THEY HAD IT UNDER TIGHT

CONTROL. BUT NOW WE CONTROL IT AND WE

ARE TAKING -- LAST NIGHT WE TOOK OUT A LOT OF BOATS.

A LOT OF SHIPS COME THROUGH AND THEY COME THROUGH EVERY DAY.

JEFF: WITH US IS THE BLOOMBERG MIDDLE

EAST CORRESPONDENT AND BLOOMBERG OIL PRODUCTS REPORTER.

LET'S KICK IT OFF WITH YOU. CAN YOU TELL US, DO WE HAVE ANY

CONFIRMATION OF THE STRIKES NEAR KHARG ISLAND LAST NIGHT?

ABEER: GOOD MORNING, JEFF. PERHAPS WILL CAN SPEAK MORE

ABOUT WHAT'S HAPPENING IN THE STRAIT OF HORMUZ, BUT THOSE ARE

CONFIRMED ATTACKS. EXPLOSIONS WERE HEARD NEAR THE

KHARG ISLAND IN THE STRAIT OF HORMUZ.

THIS IS THE MAIN EXPORT HUB OF IRANIAN CRUDE EXPORTS,

ESSENTIALLY, THAT THE U.S. NAVAL BLOCKADE HAS BEEN

MAINTAINED OVER THE COURSE OF THE PAST SIX MONTHS OR SO.

YOU GO BACK TO WHAT HAS HAPPENED OVER THE COURSE OF THE

PAST WEEK. THAT IS ESSENTIALLY A RETURN TO

MILITARY ESCALATIONS HERE IN THE REGION THAT THE U.S.

-- PRESIDENT TRUMP STARTING ATTACKS AGAINST IRAN BECAUSE HE

SAID THEY HAD ATTEMPTED TO PUT MINES IN THE STRAIT OF HORMUZ

AGAIN. IRAN RETALIATING AGAINST COUNTRIES IN THE REGION,

SIMILAR TO THE ACTION IT HAD CONDUCTED OVER THE COURSE OF

THIS WAR. YOU SAW THE UNITED ARAB

EMIRATES, KUWAIT, JORDAN, 10 MISSILES WERE INTERCEPTED OVER

TOWARD SKIES.

THAT IS WHAT WE KEPT AN EYE ON OVER THE COURSE OF THE PAST

WEEK. THAT RETURN TO KINETIC WARFARE

WAS SLIGHTLY CONCERNING.

THEN YOU SAW A LITTLE BIT OF DE-ESCALATION.

JD VANCE, PRESIDENT TRUMP DOWNPLAYING THE PROSPECT OF

THIS WAR, CALLING IT A CONFLICT, NOT EVEN A WAR.

THAT, WE DON'T KNOW HOW IT WILL SETTLE WITH THE 18 TROUPE

MEMBERS WHO WERE KILLED FROM THE UNITED STATES.

HUNDREDS OF OTHERS INJURED. 35 HUNDRED IRANIAN CASUALTIES,

INCLUDING SOME THAT HAVE DIED OVER THE COURSE OF THE PAST

WEEK. WE ARE SEEING SOME KIND OF ESCALATION IN THE REGION, SIGNS

OF CONCERN, JEFF, AND REALLY, NO END IN SIGHT WHEN IT COMES

TO A RETURN TO THOSE DIPLOMACY TALKS, EVEN WITH THE MEDIATOR

STILL VERY MUCH INVOLVED. CHRISTINA:

WE HAVE BEEN SEEING WHAT I'VE BEEN CALLING INDEFINABLE

OPTIMISM. ANYTIME THERE IS AN INKLING

THAT COULD BE A DEAL OR NEGOTIATIONS WE SEE MARKETS

REACTED OIL PRICES GO DOWN. I WONDER FOR REACHING THE END

OF THAT PATIENCE AND WHY WE ARE SEEING DIESEL ESPECIALLY -- WHY

THOSE PRICES ARE SPIKING SO DRAMATICALLY THIS WEEK AFTER

SIX MONTHS OF THIS BACK-AND-FORTH? WILL:

I WOULD NEVER UNDERESTIMATE INVESTOR'S ABILITY TO BE

OPTIMISTIC. DIESEL HAS BEEN NOT ONLY

BECAUSE OF IRAN BUT WHAT IS GOING ON IN RUSSIA.

UKRAINE HAS BEEN STRIKING REFINERIES.

RUSSIA HAS BEEN AN EXPORT OF DIESEL.

THAT LEAVES ALMOST THE WHOLE WORLD IN A PRECARIOUS POSITION.

THE WORLD BEFORE THIS, TYPE STRUCTURING REFINERY CAPACITY

TO MAKE THE ZOZOS ALREADY A PRECARIOUS SITUATION.

YEAH, NOT REALLY SEEING A STOP ANYTIME SOON AND I THINK

MARKETS HAVE CAUGHT UP TO THE IDEA THAT WE ARE IN A

DISTILLATE CRISIS AS PEAK DEMAND SEASON KICKS OFF IN THE

FALL. JEFF: THE PRESIDENT LIKES TO SAY THE

U.S. CONTROLS THE STREET. IS THAT ACCURATE? ABEER:

THAT IS A GOOD QUESTION. IT IS REALLY NOT CLEAR.

I WAS EXCITED TO ENTER THAT DIESEL QUESTION BECAUSE WE WERE

REPORTING ON IT ALL WEEK. WHO CONTROLS THE STRAIT OF

HORMUZ? IT IS A MIXED PICTURE.

OF COURSE, THE U.S. NAVAL BLOCKADE HAS BEEN VERY

SUCCESSFUL THAT LIMITING DOWN THOSE IRANIAN CRUDE EXPORTS,

BUT IRAN STILL MAINTAINS SOME KIND OF DOMINANCE OVER THE

STRAIT. WE REPORTED THAT DEAL BETWEEN

OMAN AND IRAN OVER THE COURSE OF THE PAST MONTH TO ASSERT

SOME KIND OF DOMINANCE OVER THE STRAIT OF HORMUZ TO START

CHARGING TOLLS GOING FORWARD. IT'S NOT JUST THAT.

IT'S THE THREAT THAT IRAN CONTINUES TO POSE OVER THE

MOVEMENT OF THESE SHIPS AND TANKERS.

WE WERE REPORTING LAST WEEK ABOUT SHIPS BEING

HIT, SUPERTANKERS LINKED TO GULF COUNTRIES HIT BY AN

UNIDENTIFIED PROJECTILE OR THE THREAT OF IRAN ESSENTIALLY

POSING ON THE CRUCIAL WATERWAY WITH THE IRGC CONTINUING TO SAY

THEY HAVE THE ABILITY TO HIT THOSE SHIPS AND THEY WILL DO SO

IF THEY FEEL THREATENED. CHRISTINA:

IF YOU ARE EXCITED ABOUT THESE ALL, I WOULD NEVER STOP ANYONE

FROM TALKING ABOUT THE CELL. IF YOU HAVE MORE ON THAT STORY,

FEEL FREE. I WANT TO ASK YOU ABOUT THE

ISSUE OF MINES, WHICH WE HAVE BEEN TALKING ABOUT SINCE DAY

ONE. THIS IS INVOLVED IN THE RETICENCE OF SOME OF THE

SHIPPING COMPANIES TO SEND SHIPS THROUGH, BUT WE HAVEN'T

SEEN OR HEARD OF MANY INCIDENTS OF THOSE SHIPS HITTING ANY.

SOME OF THEM MAY BE WORD LIVE MUNITIONS, THEY WERE DECOYS, XI

OUT FROM THE IRANIAN GOVERNMENT OR IRANIAN OPERATIVES.

-- A SIGH UP -- PSYOP FROM THE RUNNING GOVERNMENT OR IRANIAN

OPERATIVES. ABEER:

I WILL FOCUS ON THE MINES AND MAYBE THE DIESEL CONVERSATION

LATER. THE MINES, A LOT OF EUROPEAN

COUNTRIES AND GOLD COUNTRY STILL BELIEVE THE THREAT OF THE

MINES EXIST. LAST WEEK WE DID HEAR REPORTS ABOUT THE TWO

SHIPS BEING HIT BY MINES OR HAVING EXPLODED AS A RESULT OF

SOME MINES. OUR OWN BLOOMBERG ECONOMICS

TEAM ESTIMATES THAT THERE IS A LIKELIHOOD OF MINES BEING

COMPLETELY OUT OF THE EQUATION, IT'S NOT VERY LIKELY.

PRESIDENT TRUMP, OF COURSE, THE U.S.

ADMINISTRATION CONTINUES TO SAY THEY HAVE COMPLETELY DE-MI NED

THE STRAIT OF HORMUZ. WHILE THERE IS SOME SUCCESS BY

THE UNITED STATES TO DE-MINE THE ST U.S.

TO KNOW WHERE THE MINES ARE. THE RESPONSE FROM IRAN HAS BEEN

THE ONLY PEOPLE WHO KNOW WHERE THESE MINES EXIST OR SOME KIND

OF IRANIAN OFFICIALS AND THE ECHELONS OF POWER.

IRAN DISCUSSED WITH HIM ON SOME MECHANISM TO INCLUDE EUROPEAN

COUNTRIES TO COME IN AND POSSIBLY DE-MINE THE STRAIT.

WE ARE NOT SURE IF THE STREET IS DE-MINED.

THE THREAT ALONE OF POSSIBLY SHIPS GOING THROUGH THE STRAIT

OF HORMUZ INTO BEING EXPOSED TO THAT RISK, THAT ALONE IS

KEEPING A LOT OF SHIPS, KIND OF, HESITANT TO GO THROUGH.

CHRISTINA: IT IMPACTS INSURANCE RATE.

IT IMPACTS THE RATE YOU HAVE TO PAY SAILORS AND MARINERS TO GET

ON THE BOATS. YOU HAVE ANOTHER QUESTION FOR

WELL. JEFF: WANTED TO TALK ABOUT UKRAINE.

TO WHAT EXTENT IS THE MULTIYEAR WERE IN UKRAINE AFFECTING OIL

AND GAS SUPPLIES? WILL: MASSIVELY AT THIS POINT AND

TIME HERE IN UKRAINE AND RUSSIA WERE NOT THE MAIN STORY FOR A

WHILE. THE WORD IRAN TAKES A LOT OF

PRECEDENCE HERE, BUT BETWEEN ATTACKS ON TANKERS IN AND

AROUND THE REGION BETWEEN THE ATTACKS ON REFINERIES WE WERE

TALKING ABOUT EARLIER, THE CRISIS IS VERY CENTERED AROUND

RUSSIA AND UKRAINE. WHAT'S IMPORTANT TO THINK ABOUT

IS THESE CRISES ARE KIND OF AMPLIFY EACH OTHER.

ONE WOULD NOT BE AS DISASTROUS WITHOUT THE OTHER.

TOGETHER, THEY ARE CREATING THIS IMPACT WHERE WE ARE SEEING

PRICES FOR DIESEL SKYROCKETED, THE PRICE OF CRUDE HIGHER THAN

IT OTHERWISE WOULD BE. A LOT OF REASONS WHY THESE TWO

HAPPENING AT ONCE ARE BAD -- NOT JUST GEOPOLITICALLY, BUT

FOR THE PRICE OF ENERGY. JEFF: I WANTED TO ASK ABOUT OPEC.

THAT CURTAIL IS NOT SEEMING AS DURABLE AS IT ONCE DID.

THEY ARE MEETING TOMORROW. DO YOU THINK THEY COULD DECIDE

TO BOOST OUTPUT TO TRY TO LOWER THESE PRICES? WILL:

GREAT QUESTION. IT HAS BEEN INSCRUTABLE, AND I

WOULD DEFER TO OTHERS ABOUT THE INNERWORKINGS OF OPEC, BUT I

WILL SAY BOOSTING OUTPUT IS THEORETICAL IN LARGE PART RIGHT

NOW. WE ARE GOING TO SAY WE ARE GOING TO BOOST OUTPUT, BUT IF

YOU CAN'T GET THE CARGOS THROUGH THE STRAIT, IF YOU

CAN'T DO THE BYPASSES YOU'VE BEEN DOING, THERE'S ONLY SO

MUCH CAPACITY, PARTICULARLY OUT OF THE MIDDLE EAST. VENEZUELA

IS A SEPARATE QUESTION. RIGHT NOW THESE MEETINGS --

IT'S A GOOD QUESTION AS TO HOW MUCH OF THEM IS ACTUALLY GOING

TO PRACTICE. CHRISTINA: SOME COUNTRIES ARE ALREADY AT

CAPACITY LIKE LIBYA AND OTHERS, THEY CANNOT THROTTLE MORE.

THEY ARE PRODUCING AT CAPACITY. WHO HAS THE ELASTICITY TO

CHANGE THEIR OUTPUT OTHER THAN SAUDI? WILL: GREAT QUESTION.

HONESTLY, I THINK THE ELASTICITY TO CHANGE OUTPUT

RIGHT NOW IS ABOUT PRODUCTION, OBVIOUSLY, BUT IT'S ABOUT

SHIPPING. WITHOUT SHIPPING I DON'T KNOW

WHERE YOU CAN GET THAT ADDITIONAL EXPORT CAPACITY.

JEFF: I WANT TO ASK YOU ABOUT WHAT

THE PRESIDENT SAID EARLIER THIS WEEK REGARDING THE STRAIT OF

HORMUZ. HE SAID IN THE FUTURE IT MAY

NOT BE AS IMPORTANT AS IT IS NOW. IS THAT TRUE?

WE'VE HAD 20% OF THE WORLD'S OIL SUPPLY COMING THROUGH FOR A

LONG TIME. ABEER: ONE WOULD BRING THE QUESTION

OF, HOW MUCH CONTENTION IS GOING FORWARD WITH THE STRAIT

OF HORMUZ OR HOW MUCH INTEREST IS IN THE STRAIT OF HORMUZ

RIGHT NOW? CERTAINLY IN THE NARRATIVE OF

PRESIDENT TRUMP, BUT ALSO A LOT OF THE COUNTRIES IN THE GULF,

HAVE BEEN DOUBLING DOWN ON SECONDARY ROUTES TO NOT PAY THE

STRAIT OF HORMUZ AS MUCH ATTENTION GOING FORWARD.

WE HAVE THE PIPELINE IN THE UAE, THE RED SEA PIPELINE,

TRYING TO HAVE NEW ROUTES TO SHIP THEIR PRODUCT.

MAYBE THERE'S SOME TRUTH TO THAT.

MAYBE THE PRESIDENT'S REMARKS ABOUT THE STRAIT OF HORMUZ, OR

EVEN SCOTT BESSENT WHO SAID IN A COUPLE OF YEARS IT WILL JUST

BE A WATERWAY, MAYBE THERE IS TRUTH THAT WE MAY RESORT TO THE

STRAIT OF HORMUZ LESS, BUT COMPLETELY SHUTTING AWAY THE

STRAIT OF HORMUZ IS UNLIKELY. THAT'S WHAT WE'RE HEARING FROM

A LOT OF PEOPLE IN THE UAE AND SAUDI ARABIA.

THE FACT THAT YOU'RE NOT GOING TO USE THE STRAIT OF HORMUZ AT

ALL WITHIN A COUPLE OF YEARS, THAT'S NOT A REAL LIKELIHOOD IS

THE CONSENSUS WE ARE GETTING OUT OF HERE. CHRISTINA:

WHAT ARE YOU HEARING FROM GULF ALLIES?

THERE WERE NEGOTIATIONS BETWEEN IRAN AND OMAN TO COME UP WITH A

TOLLING SITUATION. THAT HAS NOT BEEN FINALIZED,

BUT OUR GULF ALLIES TRYING TO COME UP WITH THEIR OWN PLANS

SEPARATE FROM THE UNITED STATES AS TO HOW TO MOVE FORWARD HERE?

ABEER: FIRST OF ALL, FRUSTRATION.

THEY ARE ALL QUITE FRUSTRATED. WHEN IT COMES TO THOSE PLANS WE

REPORTED A FEW WEEKS AGO THEY MAY HAVE TO RESORT TO THEIR OWN

PLANS WITH IRAN. THEN PERHAPS, CHRISTINA, A

SENIOR PRESIDENTIAL ADVISER HERE TO THE UAE'S PRESIDENT, HE

DID SAY LAST WEEK, ESSENTIALLY, THAT THIS SITUATION OF NO FULL

ON WAR, NO PEACE, IS THE MOST UNSUSTAINABLE FOR THE REGION.

IT'S NOT GOING TO WORK FOR THESE LONG-TERM ECONOMIC GROWTH

PROSPECTS FOR THESE COUNTRIES. THEY ARE QUITE FRUSTRATED.

THEY ARE AT A POINT WHERE THEY NEED A SOLUTION IN THIS

CONFLICT IN THIS WAR -- THIS CONFLICT, ACCORDING TO

PRESIDENT TRUMP, OF COURSE AND JD VANCE. CHRISTINA:

BY ANY OTHER NAME IT IS CAUSING THE SAME AMOUNT OF PROBLEMS.

ABEER AND WILL. WE APPRECIATE YOUR INSIGHTS.

IT IS FASCINATING AND HAS TO BE FRUSTRATING FOR U.S.

ALLIES BECAUSE IS NOT A BIG ENOUGH CONFLICT THAT YOU CAN

GET YOUR ARMS AROUND IT LIKE YOU COULD A CONVENTIONAL WAR

AND IT WON'T STOP EITHER. JEFF: IT'S HARD FOR THE WHITE HOUSE

TO PRESS THE CASE IT'S NOT A WAR WHEN YOU HAVE AS MANY

TROOPS IN THE REGION AS YOU DO AND THE MILITARY TIED UP IN THE

WAY THAT IT IS PICKED CHRISTINA: AND CASUALTIES.

AND ITS IMPACT THE ECONOMIES OF NATIONS CRITICAL TO U.S.

INTERESTS IN THE REGION. COMING UP, APPLE IS DAYS AWAY

FROM ITS NEXT BIG PRODUCT LAUNCH.

PEOPLE ARE LOOKING OUT FOR THIS. IT WILL BE THE FIRST UNDER THE

NEW APPLE CEO. WE WILL GET A PREVIEW OF SOME

OF THE NEW PRODUCTS AND NEW DIRECTION WITH ITS DEVICES.

DO YOU HAVE AN IPHONE? DO YOU HAVE TWO IPHONES? JEFF:

I HAVE ONE IPHONE. I'M CURIOUS TO HEAR ABOUT THE

FLIP. THAT IS A NEW THING. CHRISTINA:

I HAVE TWO IPHONES AND AN ANDROID.

I'M TRYING TO GET THAT DOWN TO TWO DEVICES.

WHAT COULD BE UNROLLING FROM THE APPLE PRODUCT LAUNCH,

STRAIGHT AHEAD ON BLOOMBERG THIS WEEKEND. STAY WITH US.

♪

LISA: THANK YOU FOR JOINING US, LET'S

UPDATE YOU ON TODAY'S TOP STORIES. A SETBACK FOR THE TRUMP

ADMINISTRATION WHEN IT COMES TO HOW MAIL-IN BALLOTS ARE HANDLED

FOR THE CURRENT ELECTION CYCLE. A JUDGE BLOCKED THE POSTAL

SERVICE FROM ENFORCING LIMITS ON MAIL-IN VOTING THROUGH THE

NOVEMBER 3 MIDTERM ELECTIONS AS NORTH CAROLINA BEGINS SENDING

BALLOTS ON FRIDAY AND THE U.S. JUSTICE DEPARTMENT WAS URGING

THE SUPREME COURT TO INTERVENE. THE FIRST JUSTICE DEPARTMENT

PROSECUTION OF A FEDERAL OFFICER FOR ACTIONS TAKING

DURING AN MINNESOTA IMMIGRATION CRACKDOWN LAST WINTER.

CHRISTIAN CASTRO WAS RELEASED FROM FEDERAL CUSTODY ON FRIDAY.

HE IS CHARGED WITH LYING TO INVESTIGATORS ABOUT THE

CIRCUMSTANCES THAT LED TO THE SHOOTING OF A VENEZUELAN MAN.

HIS DEFENSE ATTORNEY SAID CASTRO INTENDS TO PLEAD GUILTY

IN THE CASE AND URGES THE PUBLIC NOT TO PLACE JUDGMENT ON

THE FORMER MILITARY AND IMMIGRATION OFFICER.

>> THAT THE PERSON DO THAT FOR HIS LIFE AND NOT GET THE SAME

BENEFIT OF THESE CONCEPTS THAT WE HAVE COME LEGAL CONCEPTS OF

INNOCENCE UNTIL/UNLESS PROVEN GUILTY. IT'S JUST WRONG. LISA:

TWO WORKERS WERE PULLED A LIGHT FROM A TUNNEL FOLLOWING

MUDSLIDES IN NEPAL. WE ARE GETTING WORD OF ANOTHER.

A CHINESE NATIONAL AND A WOMAN WERE FOUND ALIVE 10 DAYS AFTER

DEVASTATING FLOODS HIT THE COUNTRY.

ABOUT 900 WORKERS ARE MISSING FROM 12 HYDROPOWER PROJECTS

ACROSS NEPAL WITH ROUGHLY 500 BELIEVED TO BE TRAPPED IN

VARIOUS TUNNELS. CHRISTINA: I'M GLAD THEY WERE ABLE TO FIND

SOME OF THOSE FOLKS BUT IT WILL BE VERY LONG. JEFF:

FOR THE PAST 15 YEARS APPLE HAS LAUNCHED CULTURE-CHANGING

PRODUCTS, FOUND A NEW REVENUE STREAMS THROUGH SUBSCRIPTION

MODELS, AND SOLIDIFIED ITS PLACE AS ONE OF THE MOST

DOMINANT TECH COMPANIES IN THE WORLD. CHRISTINA:

NEW CEO JOHN TERNUS WILL TAKE THE STAGE, THE FORMAT MADE

FAMOUS BY STEVE JOBS, TO UNVEIL THE BEGINNING OF APPLE'S

BIGGEST RUN OF DEVICE RELEASES IN HISTORY.

FOR MORE ON ALL OF THIS, WE ARE JOINED BY BLOOMBERG

INTELLIGENCE'S SENIOR HARDWARE ANALYST. WHY IS HE DUMBING IT

THIS WAY? WHAT -- WHY IS HE DOING IT THIS

WAY? THIS THING HAS A NAME, SUNSHINE

SOMETHING. WHY ARE WE CALLING AT THIS?

WOO -JIN: WE ARE DOING IT THIS WAY

BECAUSE THAT IS THE WAY APPLE HAS ALWAYS DONE IT.

IT ALSO MARKS THE TRANSITION OF THE NEW CEO, JOHN TERNUS.

IT'S A GREAT WAY TO INTRODUCE THE NEW PROJECT AND CEO.

CHRISTINA: SURPRISE AND SHINE, NOT

SUNSHINE. ARE THERE ANY HINTS IN THE NAME

OR IS IT JUST A CHEERFUL WAY TO REINTRODUCE SOME NEW APPLE

PRODUCTS? WOO-JON: THERE ARE A COUPLE OF THINGS.

THE RUMORED APPLE FOLDABLE DEVICE, THE IPHONE ULTRA, IS

PROBABLY THE DEVICE THAT A LOT OF CONSUMERS AS WELL AS

INVESTORS ARE GOING TO BE KEEN ON SEEING.

THERE ARE ALSO OTHER PRODUCTS RUMORED TO BE OUT, NEW AIRPODS

AS WELL AS HOME DEVICES THAT APPLE NEEDS TO REFRESH. JEFF:

I'M PRETTY USED TO THE REGULAR IPHONE.

WHAT'S THE DEMAND GOING TO BE -- CHRISTINA: I HAVE TWO PHONES.

JEFF: CHRISTINA HAS MULTIPLE. A DIFFERENT KIND OF FOLDABLE.

WHAT IS THE DEMAND GOING TO BE FOR A FOLDABLE IPHONE? WOO-JIN:

IT DEPENDS ON THE REGION. FROM A GLOBAL PERSPECTIVE, THE

FOLDABLE DEVICE IS ACTUALLY VERY, VERY POPULAR.

BASED ON WHAT WE'VE HEARD ON THE SUPPLY CHAIN, APPLE

ACTUALLY INCREASED THE PRODUCTION VOLUME ASKS TO THE

SUPPLY CHAIN. SO THEY ARE EXPECTING A FAIRLY

HEALTHY LAUNCH. THAT SAID, WE ARE NOT TALKING

ABOUT BIG NUMBERS. THEY WILL PROBABLY COME OUT

WITH 10 MILLION UNITS FOR THIS INITIAL LAUNCH CYCLE. JEFF:

HOW MUCH ARE THEY COMPETING WITH SAMSUNG?

THEY ALREADY HAVE ONE? WOO-JIN: I DON'T THINK IT MATTERS, RIGHT?

APPLE NEVER HAD TO BE FIRST TO WIN THE GAME.

THEY WILL BE COMPETING WITH SAMSUNG, BUT AT THE END OF THE

DAY, IT IS THE ANDROID ECOSYSTEM VERSUS THE APPLE

ECOSYSTEM. YOU'RE NOT GOING TO INITIALLY

SWITCH OVER THE ANDROID PLANS TO THE APPLE FANS.

I WILL PROBABLY BE WIN ON THOSE GUYS ON 5TH AVENUE WAITING IN

LINE TO BE THE FIRST IN LINE FOR THE IPHONE FOLDABLE AS WELL.

CHRISTINA: NO, REALLY? I LIVE NEAR THERE.

WE DO NOT WAIT IN LINE AS NEW YORKERS. WOO-JIN:

CHRISTINA IS PROBABLY PAYING SOMEONE TO WAIT IN LINE FOR HER.

CHRISTINA: I'M NOT, BUT IF I WAS GOING TO

WAIT IN LINE, THAT'S HOW I WOULD DO IT.

JOHN TERNUS HAS PUSHED BACK ABOUT THE IDEA THAT THE IPHONE

IS NEARING THE END OF ITS RELEVANCE.

HE IS TRYING TO REVAMP THE DEVICE.

BUT WE'VE SEEN THE NEW IPHONES COME OUT.

OBVIOUSLY, A FOLDABLE DEVICE IS A PARADIGM SHIFT, BUT ARE

CONSUMERS REACHING THE POINT THAT IPHONE IS DOING WHAT I

NEEDED TO DO ABOUT GOING TO PAY $400 FOR A NEW PHONE?

EVEN EARLY ADOPTERS, THAT IS WANING A LITTLE BIT.

HOW IS APPLE TRYING TO ADDRESS THAT? WOO-JIN:

WE ARE AT THE 18TH GENERATION OF THE IPHONE AND SOME OF THE

FUTURE LAUNCHES ARE PREDOMINATELY ON THE SOFTWARE

SIDE AS WELL AS ON THE CAMERA SIDE.

THE THING THAT YOU CAN BEST DO IS MAKE A BETTER CHIP OR CAMERA.

EVERY ITERATION OF THE IPHONE HAS BEEN LESS AND LESS EXCITING.

I DO THINK WHERE JOHN CAN BRING IN A LITTLE MORE EXCITEMENT

GIVEN HIS HARDWARE BACKGROUND IS TO REALLY TRY TO BUILD

ECOSYSTEM. IF YOU THINK ABOUT WHERE APPLE

HAS WON OVER OTHERS, IT'S TYING TOGETHER -- WHETHER IT'S GOING

TO BE THE SMART PHONE TO THE APPLE AIRPODS TO THE APPLE HOME

HUBS AND APPLE TV -- THERE'S PROBABLY A VISION OUT THERE

GIVEN HOW HE IS A HARDWARE GUY TO TIE AN

APPLE HOME OR EXTENDED APPLE ECOSYSTEM WITH THE SMARTPHONE

AS PROBABLY ONE OF THE MAIN DEVICES. CHRISTINA:

IT DOES BENEFIT FROM MY LAZINESS.

I STICK WITH IT BECAUSE MY DEVICES WORK TOGETHER AND I

DON'T HAVE TO CALL MY BROTHER FOR TECH SUPPORT. JEFF:

CAN I CALL HIM FOR TECH SUPPORT? CHRISTINA: ABSOLUTELY NOT. JEFF:

HE HAS REALLY BIG SHOES TO FILL. WHAT WILL BE DIFFERENT ABOUT

THE JOHN TERNUS ERA AND WHAT VISION HAS HE LAID OUT FOR THE

COMPANY? WOO-JIN: I THINK IT IS A NATURAL

TRANSITION, RIGHT? WE GO FROM STEVE JOBS, WHO WAS

REALLY BIG SHOES TO FILL AS THE VISION MAKER AND INTRODUCING

NEW HARDWARE AND VERY INNOVATION-FOCUSED HARDWARE, TO

TIM COOK WHO WAS THE OPERATIONAL MANAGER.

HE WAS THE RIGHT GUY AT THE RIGHT TIME, BUILDING OUT THE

SUPPLY CHAIN, AND DRIVING GROWTH.

JOHN TERNUS BRINGS BACK THE HARDWARE-FOCUSED VISION.

TO CHRISTINE'S POINT, WE ARE SEEING NEW DEVICES.

WHETHER IT'S WEARABLES, WEATHER IS GOING TO BE SMALLER HOME

DEVICES, SO ON AND SO FORTH.

JOHN TERNUS HAS TOUCHED ON THE MAC, THE IPAD, THE IPHONE, SO

ON AND SO FORTH, AND I'M EXCITED TO SEE WHAT JOHN TERNUS

BRINGS IN TERMS OF THE NEW DEVICES HE WANTS TO BRING TO

APPLE. CHRISTINA: PART OF THE PLAN FOR NEW

DEVICES IS HE WANTS TO USE AI NOT JUST ON THE SOFTWARE SIDE

WITH SIRI, BUT TO HELP IMPROVE PRODUCT DEVELOPMENT.

HOW IS HE GOING TO TRY TO ROLL THAT OUT, AND WHAT IS IT MEAN

FOR THE COMPANY'S GROWTH OVERALL? WOO-JIN:

FROM A PRODUCT DEPTH PERSPECTIVE, I DON'T THINK

THAT'S A SURPRISE. YOU'RE SEEING A LOT OF

COMPANIES USE AI INTERNALLY TO HELP SPEED PRODUCT DEVELOPMENT.

AS WELL AS DIAL IN PRODUCT DEVELOPMENT IN THE SENSE OF

WHAT CONSUMERS WANT. I WOULDN'T BE SURPRISED IF AI

IS PERVASIVE INTERNALLY IN APPLE.

FROM A CONSUMER DEVICE PERSPECTIVE, YOU ARE GOING TO

SEE MULTIPLE FORM FACTORS, AND I WOULDN'T BE SURPRISED IF YOU

SEE SOME EXPERIMENTATION FROM APPLE'S PART TO SEE WHAT STICKS.

JEFF: THE APPLE STOCK IS UP MORE THAN

17% THIS YEAR. IS THERE PRESSURE ON HIM TO

PRODUCE QUICKLY -- OR DOES HE HAVE SOME RUNWAY HERE? WOO-JIN:

I THINK HE HAS SOME RUNWAY.

THEY HAVE DONE WELL FROM A PRODUCT PERSPECTIVE.

WE HAVE TO KEEP IN MIND THAT ALL OF THESE PRODUCTS THAT HAVE

BEEN ANNOUNCED OR WILL BE ANNOUNCED, THE RUMOR MILL HAS

BEEN STIRRING.

JOHN HAS THIS. I DON'T THINK WE WILL SEE A LOT

MORE NEWS COMING OUT OF APPLE FROM THE DEVICE -- FROM THE

EVENT ITSELF. HOWEVER, WHERE HE WILL BE

MEASURED IS THE SUBSEQUENT EVENTS. CHRISTINA:

IS THERE ANYTHING COMING OUT OF THIS EVENT THAT YOU'RE REALLY

LOOKING FORWARD TO? I'M READING THAT THERE MIGHT BE

SMART GLASSES, EXPANDING THE HOME POD SYSTEM, IS THERE

ANYTHING OTHER THAN THE PHONE THAT WE KNOW YOU'RE STANDING IN

LINE FOR THAT YOU'RE EXCITED TO SEE? WOO-JIN:

I WANT TO HEAR HOW ALL OF THESE TIE.

WE HAVE THE MACBOOK SERIES, WE HAVE NOW THE SMART GLASSES.

HOW DOES THE SMART GLASSES TIEBACK TO THE IPHONE?

AND WHERE DO THEY THINK THAT VISION WITH SMART GLASSES ARE

GOING TO GO? IS THERE GOING TO BE AN

AUGMENTED REALITY -- AN AUGMENTED REALITY-TYPE OF

FEATURE IN THEIR? WE WILL SEE. THEY HAD THE VISION PRO.

THAT REALLY DIDN'T STICK WITH CONSUMERS.

IT'S CLEAR THAT WEARABLES IS ON JOHN'S MIND.

MAYBE IT MIGHT BE A THUMBPRINT IN TERMS OF WHAT IT'S GOING TO

BE IN THE FUTURE. CHRISTINA: HAVE A GREAT TIME.

IF I SEE YOU I WILL WAY THAT YOU. HE IS THE BLOOMBERG SENIOR

HARDWARE AND NETWORKING ANALYST. THANK YOU FOR JOINING

US. YOU'RE NOT GOING TO STAND IN LINE? JEFF:

I LOVE THAT WEARABLES IS A TERM. NO STANDING IN LINE.

I LOVE TECHNOLOGY BUT I DON'T HAVE TO BE THE FIRST ONE.

CHRISTINA: DO HAVE AN APPLE WATCH OR OURA

RING? WE SPEND ENOUGH TIME ON OUR

DEVICES. JEFF: HAS SPEND ENOUGH TIME ON MY

DEVICES. CHRISTINA:

I ALSO DON'T NEED MIND DELEGATE ME TO WORK OUT MORE.

GOVERNMENTS FACE HARD TRADE-OFFS.

EXPLAIN THIS TOPIC AND IF THAT CONTINENT CAN ADAPT TO EXTREME

HEAT AMID POLITICAL TURMOIL AND ECONOMIC SCARCITY.

>> THE STORY OF SUMMER 2026. AT LEAST A 16,000 PEOPLE HAVE

SUFFERED HEAT-RELATED DEATHS IN EUROPE.

>> THIS SUMMER'S RECORD-BREAKING HEAT WAVE MAY

HAVE RESULTED IN MORE THAN 2700 DEATHS IN ENGLAND AND WALES.

>> 5000 IN GERMANY AND THOUSANDS MORE IN SPAIN AND

FRANCE.

>> OLDER PEOPLE ARE PARTICULARLY VULNERABLE TO THE

EFFECTS OF HEAT. AROUND ONE IN FIVE RESIDENTS

ARE THE AGE OF 65.

>> MUCH OF EUROPE WASN'T BUILT FOR WEEK AFTER WEEK OF SOARING

TEMPERATURES.

>> EUROPE IS A TEMPERATE CONTINENT.

PEOPLE HAVE TO REALIZE THIS TEMPLE IS ON THE SAME LATITUDE

AS CHICAGO.

>> MAKING CLIMATE CHANGE HARDER TO IGNORE.

RESPONDING TO THE CRISIS WILL BE EXPENSIVE.

>> THE EUROPEAN COMMISSION SAYS EU MEMBER COUNTRIES NEED TO BE

SPENDING $80 BILLION A YEAR TO ADAPT TO CLIMATE CHANGE.

>> THE $80 BILLION WILL TOUCH EVERYTHING FROM HEALTH CARE, TO

FOOD, TO ECOSYSTEMS WITH INFRASTRUCTURE ALONE NEEDING

MORE THAN $33 BILLION A YEAR.

>> THESE ARE COUNTRIES OFTEN GOING THROUGH A PERIOD OF QUITE

SIGNIFICANT POLITICAL TURMOIL.

>> AS SUMMER ENDS, GOVERNMENTS ARE LEFT FACING INCREASINGLY

DIFFICULT CHOICES WITH SCANT RESOURCES.

FINDING THAT MONEY MAY PROVE JUST AS DIFFICULT AS FINDING

THE SOLUTIONS. CHRISTINA: I WAS READING AN ARTICLE THIS

MORNING THAT THE ITALIANS, AFTER GENERATIONS -- NOT

GENERATIONS, BUT DECADES OF RESISTING AIR CONDITIONING ARE

GIVING IN BECAUSE IT'S GETTING TO THE POINT -- WE BOTH WENT TO

EUROPE THIS SUMMER. I WENT TO LONDON A COUPLE OF

WEEKS AGO AND WAS WALKING ACROSS THE PARKS AND THEY ARE

ALL BROWN BECAUSE OF THE DROUGHT AND PEOPLE ARE TRYING

TO REEVALUATE HOW THEY LIVE. JEFF:

I LIVED IN GERMANY FOR FIVE YEARS AND THEY DON'T LOOK AIR

CONDITIONING BUT IT'S CHANGING. I HAVE FRIENDS WHO PUT

AIR-CONDITIONING IN THE HOUSE BECAUSE OF THE HEAT.

IT'S A NEW WORLD. CHRISTINA: IT'S NOT AS HOT, BUT YOU COULD

NEVER GET RELIEF. THAT'S WHAT REALLY STARTS TO

WEAR ON YOU. JEFF:

IT'S ALSO A HEALTH RISK FOR ELDERLY PEOPLE.

THEY NEED TO HAVE AIR CONDITIONING. CHRISTINA:

OPENAI CEO SAM ALTMAN'S HAS TAUGHT ARTIFICIAL INTELLIGENCE

COMPANIES SHOULD BE BETTER ABOUT COMMUNICATING THE

BENEFITS OF THEIR TECHNOLOGY. MORE FROM HIS INTERVIEW WITH

OUR OWN ED LUDLOW AS BLOOMBERG THIS WEEKEND CONTINUES.

STICK WITH US.

♪

LISA: THANK YOU FOR JOINING US, I'M

LISA MATEO SETBACK TO A NEW APPROACH TO PREVENT

CARDIOVASCULAR DISEASE AFTER A DRUG FROM NOVARTIS FAILED TO

REDUCE THE RISK OF HEART ATTACKS AND STROKES.

A FINAL STAGE TRIAL DID LOWER

LEVELS OF LIPOPROTEIN A, A LARGE GENETIC RISK FACTOR FOR

CARDIOVASCULAR DISEASE, BUT IT DOESN'T HAVE -- IT DIDN'T

TRANSLATE TO FEWER CARDIOVASCULAR DEATHS.

HEART ATTACKS AND STROKES. A WIN FOR ASTRAZENECA AFTER THE

FDA APPROVED ITS BREAST CANCER PILL.

IT HAS THE POTENTIAL TO EVENTUALLY BRING IN MORE THAN

$5 BILLION IN ANNUAL SALES. THE S&P 500 WILL SEE A FEW NEW

NAMES.

BLOOM ENERGY, ILLUMINA AND EVERPURE WILL JOIN THE INDEX.

THEY REPLACE BUILDERS OR FIRST CHOICE AND OTHERS.

IN SPORTS, THE U.S. OPEN CONTINUES AT FLUSHING

MEADOWS. JESSICA GULA, CARLOS ALCARAZ

ADVANCED ALONG WITH FRANCIS TIAFOE.

SERENA AND VENUS WILLIAMS DOUBLES, THEY LOST IN A SUPER

TIEBREAK. ON THE MEN'S SIDE WE HAVE

TANNER FRITZ, ALEXANDER ZVEREV,

COCO GAUFF, AND FRANCIS TIAFOE. CHRISTINA:

HE IS A FUN PLAYER TO WATCH.

OPENAI HAS RELEASED A NEW MODEL THAT IS CALLING GPT 6.

THEY SAY IT IS POSITIONING IT AS A KEY MILESTONE TO BUILD

ARTIFICIAL GENERAL INTELLIGENCE. JEFF:

OPENAI'S CEO AND COFOUNDER SAM ALTMAN SET DOWN WITH ED LUDLOW.

ED: THE WAY THAT OPENAI IS FRAMING

ASTRA IS AN EARLY STEP TOWARDS AGI BUT I THOUGHT WE COULD

START WITH WHAT IS FUNDAMENTALLY DIFFERENT WITH

ASTRA RELATIVE TO PRIOR GENERATIONS OF MODEL. SAM:

FIRST OF ALL, THANK YOU FOR HAVING ME.

IT FEELS LIKE A NEW STEP IN THE PROCESS TOWARDS MODELS THAT CAN

HELP US CREATE VALUE, DO WORK, DISCOVER NEW SCIENCE, HELP

START NEW COMPANIES OR CREATE NEW PRODUCTS.

USING IT SUBJECTIVELY FEELS VERY DIFFERENT THAN ANY MODEL

BEFORE.

ED: WHAT IS THE PRINCIPAL USE CASE

THAT'S DIFFERENT THIS TIME AROUND?

I THINK WE CAN GET INTO THE GENERATIONS OF MODEL THAT WERE

VERY CODING FOCUSED. A LOT OF THE DEVELOPMENT WAS

VERY CYBERSECURITY FOCUSED. TAKING IT AWAY FROM THE

SOFTWARE ENGINEER, WHAT IS THE EVERYDAY PERSON UNLOCKING IN AI

THAT THEY WEREN'T PREVIOUSLY ABLE TO DO. SAM:

ONE THING PEOPLE WILL IMMEDIATELY BE ABLE TO NOTICE

IS IF YOU HAVE AN IDEA, AND YOU WANT TO WORK INTERACTIVELY WITH

AN AI TO GET A COMPLEX WHOLE PIECE OF SOFTWARE BUILT, THIS

IS THE FIRST MODEL I CAN TELL SOMEONE -- JUST GIVE IT A TRY.

THERE'S A GOOD CHANCE IT WILL WORK. I HAVE WATCHED PEOPLE MAKE

COMPUTER GAMES. I WATCHED PEOPLE DO HOME --

SORT OF, ELECTRICAL ENGINEERING PROJECTS.

I WATCHED PEOPLE DO VERY COMPLEX SIMULATIONS FOR SOME

BUTTES OF SCIENCE THEY'RE WORKING ON.

CERTAINLY A LOT OF THE WORK -- SIMULATIONS FOR SOME PIECE OF

SCIENCE THEY'RE WORKING ON. CERTAINLY A LOT OF THE WORK

WHERE YOU DO A POWERPOINT PRESENTATION AND FIGURE OUT HOW

TO MAKE AN INTERACTIVE PIECE OF CODE TO SORT OF TRY DIFFERENT

SIMULATIONS, THAT STUFF IS ALSO DOABLE NOW.

WHAT I HOPE WILL HAPPEN IS -- I THINK PEOPLE WILL BE SURPRISED

AT THE BEGINNING. AS THEY BUILD UP MORE TRUST IN

THE MODEL, IT CAN REALLY DO THIS, JUST START THROWING

HARDER AND HARDER TASKS AND MORE CREATIVE IDEAS AT IT, AND

THEY WILL FIND OUT WHAT THE MODEL CAN REALLY DO FOR THEM.

ED: THE SPECIFICS OF HOW ESTHER IS

BEING RELEASED IS IMPORTANT. A VERSION WITH SPECIFIC

GUARDRAILS, WHAT WAS THE THINKING BEHIND THAT AND WHAT

ARE THE SPECIFIC GUARDRAILS IN THIS EARLY RELEASE?

SAM: THE CHALLENGE OF OUR INDUSTRY

AS WE HAVE MODELS THAT ARE GETTING INCREDIBLY CAPABLE AND

USEFUL THAT PEOPLE WANT TO USE FOR MAKING THEIR LIVES EASIER

AND STARTING COMPANIES, AS THE MODELS GET MORE CAPABLE THE

RISKS WE HAVE TO MITIGATE ALSO BECOME MORE SERIOUS.

THIS MODEL TOOK LONGER TO RELEASE THAT WE WERE HOPING.

I THINK IT WILL BE WORTH THE WAIT.

WE WANTED TO SPEND THE TIME ON THE SAFETY AND SECURITY

ALIGNMENT OF THIS MODEL AND I WANTED TO THINK THAT AS PEOPLE

UNDERSTAND THE POWER, IMPACT, AND CAPABILITIES, THEY WILL BE

HAPPY THAT WE DID.

WE WILL HAVE DIFFERENT TIERS OF CYBER ACCESS FOR THIS MODEL,

FOR CYBER IN PARTICULAR. TODAY WE ARE ROLLING IT OUT TO

TRUSTED ACCESS PARTNERS. IN THE COMING DAYS, ASSUMING IT

GOES WELL, WE WILL ROLL IT OUT MORE BROADLY.

YOU COULD SAY IF THIS MODEL IS, YOU KNOW, IF IT HAS A CYBER

PROBLEM WHY WOULD ANYONE USE IT FOR CYBER?

I THINK IT'S VERY IMPORTANT TO NOTE THAT THE WORLD IS VERY

CLOSE TO A COMPLETE CHANGE IN THE LANDSCAPE OF CYBER ATTACKS.

THE ONLY WAY WE SEE FOR SOCIETY TO COLLECTIVELY DEFEND ITSELF

AGAINST THIS COMING WAVE OF MODELS FROM AROUND THE WORLD

AND OTHER COMPANIES IS TO USE TOOLS LIKE ASTRA TO RAPIDLY

DEFEND AGAINST THESE NEW CYBER THREATS.

SO WE WILL HAVE MULTIPLE PROGRAMS FOR PEOPLE AT

DIFFERENT LEVELS OF VERIFICATION AND TRUST, BUT WE

THINK IT'S QUITE IMPORTANT IN THE WORLD USE THESE MODELS TO

COLLECTIVELY DEFEND OURSELVES. ED:

WHAT HAPPENED IN PRIOR RELEASES IS IMPORTANT.

YOU DETERMINED ASTRA CAN AND DEVELOPED A ZERO-DAY EXPLOITS

WITHOUT ANY HUMAN INTERVENTION. YOU PAUSE TO SOME OF THE WORK

TO STRENGTHEN SOME OF THE SAFEGUARDS.

WHAT SPECIFICALLY WAS IT THAT YOU SAW THAT MADE YOU HIT PAUSE?

I SUPPOSE, THE BEHAVIOR OF THE MODEL? SAM:

IT'S WORTH POINTING OUT THAT THE MODEL WE ARE LAUNCHING

TODAY, GPT 6 ASTRA HAS BEEN DONE TRAINING FOR A WHILE.

THE MODEL WE TALKED ABOUT PAUSING IS A FUTURE MODEL.

WITH ASTRA WE DID HIT CYBER CRITICAL.

THAT REQUIRED UNDER OUR PREPAREDNESS FRAMEWORK A NEW

SET OF SAFEGUARDS TO BE ABLE TO RELEASE ASTRA BECAUSE OF THE

CYBER CAPABILITIES WE TALKED ABOUT. ED:

I HAVE A LOT OF QUESTIONS FOR YOU ABOUT ASTRA AND A CHAIN OF

THOUGHT. I DON'T KNOW IF THAT COMES AS A

SURPRISE TO YOU OR NOT. AS ASTRA BECOMES MORE

AUTONOMOUS OR FUTURE GENERATIONS BECOME MORE

AUTONOMOUS, CAN OPENAI SAY WITH CONFIDENCE THAT YOU SEE AND

UNDERSTAND WHAT THE MODEL IS PLANNING BEFORE IT ACTS?

IN OTHER WORDS, YOU HAVE VISIBILITY INTO THE REASONING

-- THAT BASICALLY USERS OF THE MODEL CAN'T SEE, OPENAI CAN,

FOR OBVIOUS REASONS. CAN YOU GO INTO THAT A LITTLE

BIT? SAM:

WE'VE TALKED FOR A LONG TIME ABOUT THE IMPORTANCE OF

MONITOR-ABILITY OF MODELS. THIS IS ONLY ONE PART OF IT.

THERE IS SANDBOXING. MOST IMPORTANTLY THERE IS

ALIGNMENT. THERE ARE A NUMBER OF THINGS

THAT COME TOGETHER TO BE ABLE TO MAKE THE SAFETY GUARANTEES

THAT WE WANT TO MAKE WITH A MODEL. THE MONITOR ABILITY IS AN

IMPORTANT THING AND WE'VE BEEN TALKING.

FOR WELL OVER A YEAR ABOUT THE IMPORTANCE OF CHAIN OF THOUGHT

MONITORING. AND HOW WE HAVE MADE VARIOUS

DECISIONS THERE THAT HELP US PRESERVE CHAIN OF THOUGHT

MONITORABILITY -- EVEN IF IT MEANS WE DON'T MAXIMIZE

CAPABILITIES WE CAN OTHERWISE GET.

WE THINK THAT'S IMPORTANT, AN IMPORTANT COMPONENT.

WE WANT TO BE CLEAR THAT WE DON'T THINK IT'S THE ONLY

COMPONENT THAT MATTERS. ED: WE ARE LIVE ON BLOOMBERG

TELEVISION AND RADIO SPEAKING TO SAM ALTMAN, THE CEO OF

OPENAI. THERE IS A LOT OF BAD PR IN THE

WORLD AROUND AI AT THE MOMENT. EVERYDAY CITIZENS WORRYING

ABOUT THE IMPACT. ONE WAY I WANT TO PUT THAT TO

YOU IS WHETHER YOU CAN SAY UNEQUIVOCALLY THAT IF ASTRA OR

ANY FUTURE GENERATION MODEL BEHAVED IN A WAY THAT WAS

DANGEROUS THEY WOULD BE ABLE TO DETECT IT AND SHUT IT DOWN? SAM:

THE OBVIOUS HARD PART OF THAT QUESTION IS THAT PEOPLE HAVE

DIFFERENT OPINIONS ABOUT WHAT MODELS SHOULD BE ABLE TO DO AND

SHOULDN'T BE ABLE TO DO. WE THINK THERE ARE SOME THINGS

TO VERY CLEARLY MODELS SHOULDN'T BE ABLE TO DO.

THERE ARE SOME CLEAR RED LINES. WE TALK A LOT ABOUT BEING ABLE

TO DETECT THOSE, BUT WE WILL ALSO HAVE STRONG OPINIONS ABOUT

THINGS WITHIN THE BROAD BOUNDS OF WHAT IS POSSIBLE ABOUT HOW

THE USE AI, HOW THEY WANT TO BE ABLE TO USE AI.

THIS IS GOING TO BE A DIFFICULT QUESTION FOR SOCIETY, BECAUSE

THERE IS NOT GOING TO BE AGREEMENT ON, YOU KNOW, WHAT IS

AND ISN'T AN ACCEPTABLE USE OF AI.

I THINK IT'S VERY IMPORTANT IN THE SAME WAY THAT PEOPLE DO

THINGS WITH THE ELECTRICITY THAT I MAY NOT ALWAYS LIKE BUT

I THINK EVERYONE HAS A RIGHT TO ELECTRICITY.

WE SAY THERE WILL BE SOME RULES FOR SOCIETY.

YOU CAN'T ELECTROCUTE SOMEONE ELSE ON THE STREET.

BUT THIS IS AN IMPORTANT PLATFORM THAT BELONGS TO ALL OF

US WE NEED TO BE ABLE TO USE. THERE WILL BE ONGOING

CONVERSATION, NEGOTIATION IN SOCIETY.

THERE WILL BE SOME THINGS WE AGREE ON THE PEOPLE SHOULDN'T

DO WITH AI, BUT THERE ARE A LOT OF EDGES THAT WE WON'T HAVE TO

FEEL OUR WAY THROUGH. GIVING PEOPLE AUTONOMY AND

FREEDOM TO USE AI IS IMPORTANT

-- ♪

CHRISTINA: WELCOME BACK. I'M CHRISTINA RUFFINI WITH JEFF

MASON. HUMANS HAVE BEEN TRYING TO

SPEAK TO ANIMALS FOR TENS OF THOUSANDS OF YEARS. JEFF:

WE MAY BE CLOSER THAN EVER TO ENTER SPECIES UNDERSTANDING

THANKS TO AI. WE SPOKE WITH THE BLOOMBERG

WRITER.

>> THROUGHOUT HUMAN HISTORY WE'VE BEEN TRYING TO

COMMUNICATE WITH ANIMALS AND I THINK FOR THE LAST FEW DECADES

RESEARCHERS HAVE BEEN SYSTEMATICALLY TRYING TO DO

THIS. FAMOUS EXAMPLES INCLUDE IRENE

PEPPER BERG AND HER 30 YEAR EXPERIENCE WITH ALEX THE PARENT.

THIS IS A CHATGPT MOMENT. SINCE 2020 TWO.

AI HAS BEEN LEAKING INTO THE SPACE SO RESEARCHERS HAVE BEEN

SEEING THE POTENTIAL TO DO WHAT THEY THOUGHT WAS PREVIOUSLY

IMPOSSIBLE. SO, WE ARE SEEING HUGE LEAPS

FORWARD. ONE MAJOR DONOR IN THE FIELD,

PRIVATE EQUITY BILLIONAIRE, SAYS HE BELIEVES TWO-WAY

COMMUNICATION WITH ANIMALS COULD BE POSSIBLE BY 2030.

THESE ARE VERY QUICK TIME LINES. PEOPLE ARE EXPECTING QUICK

PROGRESS. IF THAT IS TRUE, IF RESEARCHERS

ARE ACTUALLY ABLE TO DO THIS, THIS COULD RADICALLY RESHAPE

OUR RELATIONSHIP WITH THE ANIMALS -- WILD ANIMALS,

LIVESTOCK, AND POTENTIALLY OUR PETS. JEFF:

OF ALL OF THE THINGS AI COULD POTENTIALLY DO COMMUNICATING

WITH ANIMALS WASN'T AT THE TOP OF MY BINGO CARD. CHRISTINA:

THIS MIGHT BE THE WAY TO TURN ME AROUND ON AI. JEFF:

YOU SPOKE WITH BIOLOGISTS WHO HAVE BEEN STUDYING CROW CALLS

FOR DECADES AND THEY FEEL THEIR WORK HAS BEEN ACCELERATED.

>> WE HAVE COLLECTED 150,000 VOCALIZATIONS, AN

ENORMOUS AMOUNT OF INTELLIGENCE. AT THIS STAGE WE ARE TRYING TO

CATEGORIZE THE CALLS AND MAKE A RECORD.

ARTIFICIAL INTELLIGENCE IS PROBABLY THE KEY.

>> REALIZING HOW MANY DIFFERENT CALLS THERE ARE THAT WE DIDN'T

KNOW ABOUT -- EVEN IF YOU HAVE BEEN WORKING WITH CROWS FOR 25

YEARS.

AND ALSO JUST TO SEE SMALL DIFFERENCES IN CALLS AND WE

WONDERED IF THEY MEAN SOMETHING OR NOT. IT'S REALLY INTERESTING.

CHRISTINA: WE COULD SEE IF THEY MURDER OF

CROWS IS ACTUALLY HOMICIDAL OR NOT? MORGAN: RIGHT.

WHAT'S INTERESTING WITH THE CROW PROJECT IS THESE TWO

RESEARCHERS HAVE BEEN DOING THIS FOR DECADES.

25 YEARS, 30 YEARS. THEY'VE BEEN STUDYING CROW'S.

THEIR WORK HAS REALLY ACCELERATED.

AI ISN'T A SHORTCUT FOR THEM.

THE THEORY THEY ARE SUBSCRIBING TO IS IF WE GATHER HUGE AMOUNTS

OF DATA ABOUT ANIMAL CALLS COME IN THIS CASE CROW CALLS, YOU

HAVE THE AUDIO OF THE CALLS AND YOU CAN CROSS REFERENCE THAT

WITH THE VIDEOS OF WHAT THE CROWS ARE DOING WHEN THEY'RE

MAKING THE CALLS, AND YOU CAN FEED THIS INTO THE AI, THE AI

CAN SEARCH FOR PATTERNS THAT ARE INVISIBLE TO HUMAN BEINGS.

THE IDEAS THAT THEY CAN DEMYSTIFY WHAT THE CROWS ARE

SAYING AND HOW THEY ARE COMMUNICATING.

THIS IS THE THEORY AND THESE TWO RESEARCHERS ARE IN THE

MIDDLE OF THAT PROCESS. JEFF: I APPRECIATED THE HITCHCOCK

REFERENCE. CHRISTINA: ONE FAN. ONE FAN.

JEFF: LET'S TALK ABOUT MONEY. HIS PRIVATE EQUITY BACKING THIS?

MORGAN: A PRIVATE EQUITY BILLIONAIRE IN

THE U.K. IS ONE OF THE FIELD'S MAJOR

DONORS. HE FUNDS A LOT OF DIFFERENT

INITIATIVES WITHIN THE INTER SPECIES COMMUNICATION FIELD.

THERE'S A LOT OF TECH MONEY IN THE FIELD.

I THINK SIR REID HOFFMAN, LAUREL POWER JOBS, THE PERSON

WHO CLAIMS TO HAVE CREATED INFINITE SCROLL IS ONE OF THE

COFOUNDERS OF ONE OF THE MAJOR ORGANIZATIONS IN THIS FIELD.

THERE'S KIND OF A REDEMPTIVE ELEMENT.

ONE PERSON DESCRIBED IT AS FINALLY TECH MONEY CAN DO

SOMETHING GOOD FOR SOCIETY AND PEOPLE ARE PINNING A LOT OF

HOPES ON THIS. THEY ARGUE IF WE CAN BETTER

UNDERSTAND THE INTERIOR WORLD OF ANIMALS, LEARNING WHAT

MOTIVATES THEM, WHAT THEY THINK -- NOT JUST WHAT WORDS OR CALLS

THEY USE TO REFER TO MANGOS OR BANANAS -- WE WILL TREAT THEM

BETTER. WE WILL TREAT THE ENVIRONMENT

BETTER. THAT'S THE HOPE, AT LEAST.

THERE ARE A LOT OF PEOPLE WHO QUESTION IF THAT'S THE WAY THE

TECHNOLOGY IS USED IF IT CAN BE CREATED. CHRISTINA:

THERE'S A HISTORY OF PEOPLE COMMUNICATING WITH ANIMALS AND

NOT DOING GREAT THINGS. LIKE USING SONAR TO BRING

WHALES UP TO BE KILLED -- GIVE OTHER EXAMPLES.

THIS COULD NOT BE A GREAT THING. READ THAT PEOPLE ARE CONFUSED

CONCERNED -- I READ THAT PEOPLE ARE CONCERNED ABOUT INVASION OF

PRIVACY FOR ANIMALS IF WE ARE CERTAINLY LISTENING TO THEM.

MORGAN: I THINK IN TERMS OF THE ETHICAL

CONCERNS, THEY'RE KIND OF TWO DIMENSIONS.

THE FIRST IS, IF WE TAKE THIS IDEA AT FACE VALUE, THAT WE CAN

EVENTUALLY USE AI TO COMMUNICATE OR HAVE SOME FORM

OF COMMUNICATION WITH ANIMALS, WHAT WILL THAT DO WITH OUR

RELATIONSHIP TO THEM? IT COULD RE-CREATE IT FOR THE

BETTER. WE COULD HAVE A BETTER RELATIONSHIP.

WE COULD TREAT THEM BETTER. I DON'T KNOW IF YOU LIVE IN A

COMMUNITY WHERE ELEPHANTS ARE COMING AND CAUSING CONFLICT.

MAYBE YOU CAN SORT THAT CONFLICT OUT BETTER.

FIND A BETTER RESOLUTION. BUT THERE ARE ALSO WAYS THAT

THIS COULD BE MISUSED. PEOPLE WORRY ABOUT IT BEING

USED TO EXPLOIT ANIMALS. IN THE CROW CASE, THE

RESEARCHERS WERE WORRIED THAT YOU COULD USE THEIR FINDINGS TO

TELL THE CROW, COME HERE, IS SAFE, THEN YOU COULD KILL THEM

OR CATCH THEM. BUT IT CAN ALSO BE

MISINTERPRETED. I SPOKE TO SOMEONE ELSE WHO

SAID, SURE, WE HAVE A PRETTY GOOD IDEA THAT CHIMPANZEES HAVE

A VERY RICH SOCIAL STRUCTURE. IF HUMANS BETTER UNDERSTAND

THAT THEY MIGHT RESPECT THEM MORE. BUT WHAT ABOUT 40-DAY OLD

CHICKS IN A FARMING SETTING THAT HAVE BEEN SELECTIVELY BRED?

WHAT IF THEY HAVE BEEN SO SELECTIVELY BRED THAT THEY ONLY

TALK ABOUT FOOD? THAT COULD END UP WIDENING THE

GAP BETWEEN HUMANS AND ANIMALS. [DOG HOWLING]

CHRISTINA: THAT IS ONE ANIMAL I TRY TO

TALK TO FREQUENTLY. TINY RAT DOG BRUTUS HOWLING AT

SIRENS IN CENTRAL PARK. I FEEL THE ISSUE IS NOT THAT MY

DOG DOESN'T UNDERSTAND ME IS THAT HE DOESN'T WANT TO LISTEN.

JEFF: I GOT TO MEET BRUTUS AND WE

EXCHANGED NUMBERS SO WE CAN TALK ABOUT YOU LATER.

AI IS WORKING. CHRISTINA: THE NEXT HOUR OF BLOOMBERG THIS

WEEKEND STARTS RIGHT NOW.

♪

>> WELCOME TO "BLOOMBERG THIS WEEKEND."

LIVE FROM NEW YORK WITH DAVID GURA, CHRISTINA RUFFINI AND

LISA MATEO. THE LATEST HEADLINES, KEY

ANALYSIS, BIG INTERVIEWS AND THE STORIES THAT HIT HOME ON

YOUR DAYS OFF.

♪ CHRISTINA: WELCOME BACK TO BLOOMBERG THIS WEEKEND.

IT'S 8:00 A.M. AT OUR WORLD HEADQUARTERS IN

NEW YORK. I AM CHRISTINA RUFFINI. JEFF:

I AM JEFF MASON, IN FOR DAVID GURA.

WE ARE BRINGING YOU THE LATEST BREAKING NEWS, REPORTS AND

ANALYSIS, LIVE THIS MORNING FROM EVERY WEEKEND -- LIVE THIS

MORNING, EVERY WEEK AND FROM 7:00 A.M. 1010:00 A.M.

-- TO 10:00 A.M.. LISA: PRESIDENT TRUMP EXPLAINED THE

SITUATION TO REPORTERS IN THE OVAL OFFICE.

>> YOU HAVE PRESIDENT ZELENSKYY AND PRESIDENT PUTIN WHO

LITERALLY HATE EACH OTHER. LISA: VLADIMIR PUTIN HAS ORDERED NO

STRIKES ON KYIV FOR THE U.S. DELEGATION VISIT.

AS FOR THE CONFLICT ON MIDDLE EAST, PRESIDENT TRUMP CALLED

IRAN SMALL POTATOES COMPARED TO THE WARS IN VIETNAM AT

AFGHANISTAN. THIS CAME AFTER JD VANCE SAID

HE WOULD NOT DESCRIBE THE ARMED HOSTILITIES AS A WAR.

TRUMP ADDED HE WOULD CALL IT A MILITARY CONFLICT WITH

INTERMITTENT STRIKES. AN IRANIAN OIL TANKER WAS HIT

IN A U.S. MISSILE ATTACK. THAT'S ACCORDING TO A NEWS

AGENCY. THE TANKER WAS STRUCK BY FOUR

U.S.

PROJECTILES IN -- AND AUTHORITIES ARE ASSESSING THE

EXTENT OF THE DAMAGE. A MASSACHUSETTS JUDGE HAS

DECLARED A MISTRIAL IN THE MURDER CASE AGAINST LINDSAY

CLANCY. JURORS COULD NOT AGREE IF SHE

WAS CRIMINALLY RESPONSIBLE. THE MISTRIAL ALLOWS PROSECUTORS

TO TRY CLANCY AGAIN. SHE FACED LIFE IN PRISON

WITHOUT PAROLE IF CONVICTED OF FIRST-DEGREE MURDER.

MEMBERS OF HER LEGAL TEAM CONTINUE TO PURSUE A CIVIL CASE

AGAINST HER MEDICAL PROVIDERS.

>> WE NEED TO MAKE THINGS RIGHT. WE NEED TO MAKE SURE WHEN THERE

IS POSTPARTUM, WE HAVE TO START LISTENING TO WOMEN.

THAT'S NOT WHAT THEY ARE DOING RIGHT NOW. LISA:

CLANCY WILL BE HELD IN A PSYCHIATRIC HOSPITAL UNTIL THE

CASE IS RESOLVED. A SETBACK FOR THE TRUMP

ADMINISTRATION WHEN IT COMES TO HOW MAIL-IN BALLOTS ARE HANDLED.

A FEDERAL JUDGE HAS BLOCKED THE POSTAL SERVICE FROM ENFORCING

LIMITS ON MAIL-IN VOTING THROUGH NOVEMBER MIDTERM

ELECTIONS. THE U.S. JUSTICE DEPARTMENT WAS URGING

THE SUPREME COURT TO INTERVENE. CHRISTINA AND JEFF COME OVER TO

YOU. CHRISTINA: WITH OIL AND GAS PRICES STILL

HIGH AND THE IMPORTANT MIDTERM ELECTION COMING UP FAST,

PRESIDENT TRUMP SAYS HIS NEW DEAL WITH THE INTERIM

VENEZUELAN GOVERNMENT COULD HELP WITH RELIEF AT THE PUMP.

THE DEAL HAS SOME DETRACTORS. EVEN IN THE OIL AND GAS

INDUSTRY. THE CONTOURS OF THE ARRANGEMENT

ARE STILL QUITE FUZZY. JEFF: ALSO FUZZY, WHAT HAPPENS TO ANY

OF THIS IF AND WHEN A NEW ADMINISTRATION TAKES OVER,

EITHER IN CARACAS OR IN WASHINGTON.

JOINING US NOW IS A BLOOMBERG REPORTER AND MY COLLEAGUE AND

JEN OF THE WASHINGTON JOURNAL. TRUMP HAS TOUTED THIS DEAL AS

THE BEST DEAL EVER MADE. THIS IS SOMETIMES HYPERBOLE.

TAKE A LISTEN.

>> THERE ARE THOSE WHO SAY IT WAS THE GREATEST DEAL EVER MADE.

WE WILL SEE WHAT HAPPENS. IT WAS ALSO A VERY GOOD DEAL

FOR VENEZUELA. BECAUSE YOU HAVE THE MOST

POWERFUL AND RICHEST COMPANIES IN THE WORLD GOING INTO

VENEZUELA. WHERE BEFORE, THERE WAS JUST --

THERE WAS UNBELIEVABLE VALUE THAT WAS SITTING THERE.

WE ARE GOING TO BE TAKING THE OIL OUT. JEFF:

YOU HAVE A NEW PIECE OUTCOME AND JEN, THAT SAYS OIL

COMPANIES ARE NOT QUITE AS EXCITED ABOUT THIS AS THE

PRESIDENT IS. TELL US MORE.

>> THAT'S RIGHT. OBVIOUSLY, THE OIL INDUSTRY HAS

SEEN PRESIDENT TRUMP AS AN ALLY. SOME SAY HE'S GIVEN THEM NEARLY

EVERYTHING ON THEIR WISH LIST IN THE SECOND TERM.

THEY ALSO COMPLAIN ABOUT WHAT THEY CALL FRIENDLY FIRE.

THIS IS A GOOD EXAMPLE OF IT. BLOOMBERG SPOKE WITH A NUMBER

OF OIL INDUSTRY FIGURES AND EXECUTIVES WHO SAID THEY FELT

BLINDSIDED BY THIS DEAL. SOME OF THESE FOLKS ARE

INVOLVED IN ACTUAL -- THEY WERE INVOLVED IN ONGOING COMMERCIAL

TALKS IN VENEZUELA ALREADY. AND, YOU KNOW, THIS DEAL WITH

NORTH AMERICAN BLUE ENERGY PARTNERS LEAVES FEWER LEASES,

FEWER FIELDS UP FOR GRABS. IT ALSO BREAKS UP SOME OF THE

POTENTIAL BUNDLES THAT COMPANIES WERE IN TALKS WITH

VENEZUELAN AUTHORITIES AND STATE OWNED OIL COMPANY PAID A

-- PETA BESA OVER. SOME OF THIS HAS A TINGE OF

SOUR GRAPES LIKE FOLKS HAVE LOST OUT.

THE REALITY IS THAT SOME OF THE BIGGEST, YOU KNOW, PROVEN OIL

COMPANIES WITH U.S. EXPERTISE THAT WERE TRYING TO

MAKE A GO OF IT IN VENEZUELA FEEL LIKE THEY ARE ON THE OTHER

END OF THIS DEAL AND THEY COULD BE COMPETING ESSENTIALLY

AGAINST A SUPERCHARGED U.S. GOVERNMENT BACKED COMPETITOR IN

THE LATIN AMERICAN COUNTRY. CHRISTINA:

I WANT TO ASK YOU ABOUT THAT. THIS WAS A NO-BID CONTRACT TO

ONE COMPANY.

THERE ARE -- SICKO HAS BEEN OPERATING THERE -- CITGO HAS

BEEN OPERATING THERE. THERE IS SOME CONTROVERSY ABOUT

HOW THIS ONE COMPANY, WHY THIS ONE INDIVIDUAL GOT THIS

CONTRACT. WHEN YOU WERE REPORTING THIS

STORY, WHAT WERE THE THINGS THAT STOOD OUT TO YOU AS

QUESTIONS THAT STILL NEED TO BE ANSWERED?

>> I THINK PARTLY, THE TIMELINE. ONE OF THE THINGS WE HAVE

REALLY SEEN IS THAT THE PRESIDENT WANTED TO THE U.S.

TO HAVE A MORE DIRECT CONTROL IN VENEZUELAN OIL.

IT WAS NOT ENOUGH TO HAVE THESE COMPANIES GET THESE LONG

TIMELINES AT A SCALE THAT HE DID NOT THINK WAS FAST ENOUGH.

HE WANTED SOMETHING THAT WOULD MOVE REALLY QUICKLY RATE THE

ONLY WAY YOU CAN DO THAT IS TOO HIGH THOSE -- TO HAVE THOSE

KINDS OF CONTACTS. CHEVRON HAS THOSE.

THE VENEZUELAN SYSTEM IS STILL PRETTY SIMILAR TO HOW IT WAS

BEFORE MADURO WAS TAKEN OUT. THEY NEED AN INSIDER, SOMEONE

WHO IS CLOSE TO THE REGIME. SOMEONE WHO CAN GO BACK INTO

THAT MURKY WORLD WHERE THIS INDUSTRY HAS EXISTED FOR THE

LAST 30 YEARS. THAT'S WHERE THEY WENT WITH

THIS GUIDE. SOMEBODY WHO IS PART OF THE OLD

SYSTEM AND WHO KNOWS HOW TO NAVIGATE WASHINGTON AND CARACAS.

TO ME, IT STANDS OUT THAT THERE WERE NOT MANY OTHER OPTIONS IF

THAT'S WHAT YOU WANTED. CRITICS SAY YOU SAY YOU ARE

REMAKING THE OIL INDUSTRY AND WE ARE GOING TO BREAK WITH THE

PAST. WE SAW SECRETARY RUBIO SAY WE ARE GETTING RID OF THIS

CORRUPTION. AT THE SAME TIME, THEY ENDED UP

BASICALLY GOING BACK TO SOMEONE WHO PROFITED AND MADE HIMSELF

RICH OFF THAT SAME SYSTEM. OF COURSE THAT MEANS HE KNOWS

HOW TO NAVIGATE IT. JEFF:

THE NEW YORK TIMES AND WASHINGTON POST HAVE REPORTED

MR. BETANCOURT HAS FACED SEVERAL NATIONAL INVESTIGATIONS

INCLUDING IN SPAIN AND SWITZERLAND.

CNN HAS REPORTING ON THIS AS WELL.

WHY DID THE ADMINISTRATION PICK HIM?

>> HE WAS AN INTERMEDIARY BEFORE , IN TRUMP'S FIRST TERM.

HE WAS SOMEBODY WHO WAS VERY WEALTHY AND CONNECTED ON ALL

SIDES. HE WAS SOMEBODY WHO WAS EDUCATED IN BOSTON AND OXFORD.

HE KNOWS HOW TO MOVE IN THE CIRCLES. I WAS TOLD THAT WAS AN

IMPORTANT PART OF IT. HE DOESN'T FIT THE IMAGE OF A

TRADITIONAL VENEZUELAN SHADOWY OPERATOR, WHO GOT RICH IN THE

SHABBOS ERA. THIS IS SOMEONE THEY MET, COULD

HAVE GONE TO COLLEGE WITH AND TRUSTED.

HE HAD SOME INROADS IN THE TRUMP ADMINISTRATION.

HE HIRED RUDY GIULIANI TO GET OUT OF LEGAL TROUBLE IN HIS

FIRST TERM AND MAINTAINED SOME OF THOSE CONNECTIONS .

OFFICIALS TOLD ME HE PROVED HIMSELF, BY SHOWING HE COULD BE

TRUSTED. HE WAS WILLING TO MOVE AT A

SCALE AND AT A SPEED THAT THE OIL COMPANIES JUST CAN'T.

CHRISTINA: I WANT TO TALK ABOUT THAT SPEED.

I WANT TO PLAY SOME SOUND FROM TYLER KENDALL WHO INTERVIEWED

THE ENERGY SECRETARY A WHILE AGO AND SHE ASKED HIM ABOUT

THIS.

>> THIS IS TO BRING THESE FIELDS INTO REAL COMMERCIAL

DEVELOPMENT. BUT THE SPEED OF THINGS, SO

FAR, WE HAVE GONE AT TRUMP SPEED IN VENEZUELA.

COUNTRY PRODUCTIONS ARE UP 25%. EXPORTS ARE UP 50%.

WE THINK EVEN FROM PRODUCTION TODAY, ALREADY ELEVATED, THAT

COULD DOUBLE BY THE END OF THIS DECADE. CHRISTINA: TRUMP SPEED.

IT HAS THE BENEFIT OF PUSHING THROUGH SOME BOUNDARIES.

WE TALK ABOUT THIS ALL THE TIME IN DIPLOMACY, SOMETIMES TRUMP

SPEED CAN BE USEFUL. IN THIS CASE, WHAT ARE THE

DRAWBACKS OF POSSIBLY GOING TRUMP SPEED WHEN YOU ARE

LOOKING AT SOMETHING THAT IS AS COMPLICATED WITH ONE, MAYBE TWO

GOVERNMENTS THAT WE DON'T KNOW HOW MUCH LONGER THEY ARE GOING

TO BE AROUND IN THIS CURRENT FORM?

>> YOU ARE PUTTING THE RIGHT FOCUS THERE.

CLEARLY, THERE'S A LOT OF QUESTION ABOUT THE DURABILITY

OF THIS DEAL. NOT JUST BEYOND THE PRESIDENT'S

TERM BUT AMID QUITE A BIT OF PEOPLE IN VENEZUELA.

YOU KNOW, WITH VENEZUELA RULED BY AN INTERIM GOVERNMENT.

THERE ARE QUESTIONS ABOUT THE ABILITY OF NORTH AMERICAN BLUE

ENERGY PARTNERS TO REALLY SCALE UP PRODUCTION IN A WAY THAT THE

PRESIDENT ENVISIONS HERE. PRESIDENT TRUMP WAS FRUSTRATED

BY THE PACE OF DEALMAKING.

SINCE THE OPERATION TO CAPTURE MADURO IN JANUARY, HE HAD GROWN

FRUSTRATED WITH THE PACE OF THE TRANSACTIONS.

WE SAW CHEVRON AND GE VERNOVA CUTTING DEALS LAST WEDNESDAY.

HE WANTED TO SEE MORE. WHAT YOU SAW WITH THIS

TRANSACTION WITH BLUE ENERGY PARTNERS IS KIND OF HIT

SOLUTION TO THAT PROBLEM. IT IS A BIG, LARGE ENTITY.

UNPROVEN TIE UP BETWEEN THE U.S. GOVERNMENT AND THIS PRIVATE

CORPORATION NOW THAT, YOU KNOW, DOESN'T HAVE A LONG TRACK

RECORD OF DEVELOPING NEW FIELDS. BLUE ENERGY PARTNERS HAS AN

OPERATING RECORD IN VENEZUELA AS VERA NOTED.

THAT'S WHAT ADMINISTRATION OFFICIALS HAVE BEEN LEANING ON

WHEN THEY DESCRIBE THE COMPANY AS HAVING A PROVEN TRACK RECORD.

WHILE IT PRODUCES SOME 200,000 BARRELS OF OIL A DAY, IT'S

DOING SO LARGELY IN FIELDS THAT WERE OPERATED OR OWNED BY PETA

VESA. IT'S EXPERIENCE IS IN REHABILITATING OLD FIELDS.

THERE ARE BIG QUESTIONS ABOUT ITS ABILITY TO RAMP UP

PRODUCTION IN NEWS SITES AND THE DURABILITY LONG TERM OF

THIS ARRANGEMENT. JEFF: WE BOTH HEARD PRESIDENT TRUMP

AND OTHER ADMINISTRATION OFFICIALS SAY THIS DEAL IS

GOING TO BRING GASOLINE PRICES DOWN BEFORE THE MIDTERMS. IS

THAT REALISTIC? IS THIS GOING TO HAVE A

POLITICAL IMPACT BEFORE NOVEMBER?

>> ALMOST CERTAINLY NOT.

THE REALITY IS CHEVRON HAS BEEN WORKING TO BOOST ITS OWN

PRODUCTION IN THE COUNTRY AND HAS BEEN ABLE TO BRING ON SOME

INCREMENTAL ADDITIONAL OUTPUT OVER THE LAST FEW MONTHS.

BUT, IT WILL TAKE TIME. THESE FIELDS ARE, YOU KNOW,

WHERE THERE IS INFRASTRUCTURE, IT IS BADLY DAMAGED.

SOME THINGS HAVE TO BE DEVELOPED FROM THE VERY

BEGINNING UP. THE VERY GROUND UP.

IT'S NOT SOMETHING THAT'S GOING TO HAPPEN IMMEDIATELY.

WE HAVE TALKED CERTAINLY WITH A NUMBER OF FOLKS IN THE INDUSTRY

WHO SAY WE ARE TALKING ABOUT GRADUALLY RAMPING UP PRODUCTION

OVER THE NEXT FIVE YEARS. NOT SOMETHING THAT'S AN

IMMEDIATE SILVER BULLET. NOT SOMETHING THAT IS GOING TO

PRODUCE A WAVE OF NEW REFINED GASOLINE, HITTING PUMPS BEFORE

THE ELECTION IN NOVEMBER. CHRISTINA:

THERE'S ALSO ANOTHER PUMP -- PART OF THIS AGREEMENT, WHICH

IS PROFIT SHARING ON TOP OF THE ACTUAL PRODUCTION CONTRACT.

THAT'S BEING ADMINISTERED BY DOD OR THE DEPARTMENT OF WAR,

DEPENDING ON WHICH NOMENCLATURE YOU ARE USING.

THEY WERE ASKED WHY THE DOD WAS ADMINISTERED AND GOT.

THIS IS LIKELY TO BE CHALLENGED IN COURT.

>> TO ANSWER YOUR SECOND QUESTION, IT WAS LED BY THE

STATE DEPARTMENT. IT'S LIKE THEY STARTED -- THE

WAY IT WAS DESCRIBED TO ME IS THEY WORK BACKWARDS FROM

TRUMP'S PROMISES THAT THIS DEAL WAS GOING TO BENEFIT AMERICANS.

WE ARE GOING TO MOVE VERY QUICKLY.

THEY WERE SEARCHING FOR A FINANCING MECHANISM.

BECAUSE THIS HAS NEVER BEEN DONE BEFORE, THERE WAS NOT AN

EASY WAY TO DO IT. THEY COULDN'T DO IT THROUGH THE

STATE DEPARTMENT. THEY TRIED SOME OTHER THINGS.

LATE IN THE PROCESS, THE SUMMER, THEY BROUGHT IN THIS

LITTLE-KNOWN PENTAGON OFFICE THAT A LOT OF PEOPLE INVOLVED

IN THE DEAL TOLD ME THEY HAD NEVER HEARD OF, WHICH WAS

CREATED BY HUNTER BIDEN, TO FOCUS ON NATIONAL SECURED

PRIORITY'S. IT HAD NEVER FOCUSED ON OIL

BEFORE. IN TERMS OF THE PROFIT SHARING,

THAT'S A QUESTION WE'VE BEEN ASKING.

WE SAW THE VICE PRESIDENT MAKE AN INTERESTING CLAIM AT THE

PODIUM EARLIER THIS WEEK WHEN HE SAID THE AMERICAN PEOPLE

WOULD RECEIVE ROYALTIES DIRECTLY.

WHICH, YOU KNOW, IS NOT WHAT IS WRITTEN IN THE TEXT THAT HAS

BEEN SHOWN TO US. THEY ARE REALLY STILL FIGURING

IT OUT. I THINK THE MOST IMPORTANT

THING YOU CAN TELL FOR THEM IS TO REALLY SHOW THE AMERICAN

PEOPLE ARE GOING TO BENEFIT DIRECTLY.

WHETHER IT IS CHEAPER GAS PRICES OR THEM SAYING YOU ARE

GOING TO GET SOMETHING DIRECTLY IN -- THE BOTTOM LINE IS YOU

ARE GOING TO SEE SOMETHING GREAT FROM THIS VENEZUELA DEAL.

THERE IS NO EVIDENCE THAT IS TRUE.

THE PENTAGON HAS TAKEN A 35% STAKE IN THIS COMPANY.

EVERYTHING ELSE, WE DON'T KNOW WHAT THAT'S GOING TO LOOK LIKE.

THE INFRASTRUCTURE BUT HAS NOT BEEN DONE.

I THINK THEY REALLY DO WANT TO SHOW UP ON THE DOMESTIC

MESSAGING FRONT.

-- DOMESTIC MESSAGING FRONT THAT THE AMERICAN PEOPLE ARE

GOING TO BENEFIT AND PROFIT. TO THE EXTENT THAT HAPPENS, WE

DON'T KNOW. WE HAVE SEEN U.S. OFFICIALS DESCRIBE IT

DIFFERENTLY EVERY TIME WHEN THEY ARE SPEAKING DIRECTLY TO A

U.S. AUDIENCE, AS WE HAVE MENTIONED

AHEAD OF THE MIDTERMS. JEFF: JARED KUSHNER AND STEVE WITKOFF

ARE IN RUSSIA AND GOING TO GO TO UKRAINE THIS WEEKEND.

WHAT'S THE SIGNIFICANCE OF THIS TRIP?

>> THIS IS A TRIP THAT IS, BY ALL ACCOUNTS, AIMED AT JUST

SEEING IF TALKS CAN PROCEED AT REVIVING TALKS?

-- AT REVIVING TALKS. THERE IS NO EXPECTATION OF SOME

KIND OF GRAND DEAL. IT'S ABOUT TESTING THE WATERS

AND SEEING WHERE WE GO FROM HERE.

THAT'S THE SIGNIFICANCE AT THIS MOMENT.

KUSHNER AND WYCOFF ARRIVED IN MOSCOW THIS MORNING.

-- STEVE WITKOFF ARRIVED IN MOSCOW THIS MORNING.

THEY ARE EXPECTED TO GO TO UKRAINE TOMORROW.

VOLODYMYR ZELENSKYY HAS SAID THAT.

THEY ARE ARRIVING AND COMING INTO THESE TALKS WITH PEACE

EFFORTS THAT HAVE BEEN STALLED FOR MONTHS.

WITH RUSSIA INTENSIFYING ITS ATTACKS ON KYIV AND OTHER

CITIES. AND REALLY KIND OF TAKING

ADVANTAGE OF THE LACK OF AIR DEFENSE SYSTEMS THAT UKRAINE

HAS RIGHT NOW.

THIS IS A BELLWETHER MOMENT FOR THE TALKS THAT TRUMP HAS BEEN

TRYING TO SUPERCHARGE OVER THE LAST YEAR AND A HALF. CHRISTINA:

WE HAVE ABOUT A MINUTE LEFT. I WANT TO ASK ABOUT THIS NEW

YORK TIMES REPORT THAT THE PENTAGON HAS SUBJECTED ROUGHLY

50 MILLION -- 50 MEMBERS OF THE JOINT STAFF TO POLYGRAPH TESTS

TO DISCOVER LEAKERS. IS THAT STANDARD PRACTICE?

HOW ARE PEOPLE FEELING ABOUT THAT?

>> IT'S NOT. IT HAS BEEN AN ONGOING PATTERN

WITH THIS DEFENSE SECRETARY BUT IT SHOWS AN EXTRAORDINARY LEVEL

OF DISTRUST BETWEEN THE DEFENSE SECRETARY AND SENIOR STAFF,

SENIOR COMMANDERS, SENIOR MILITARY OFFICIALS IN THE

MIDDLE OF AN ACTIVE WAR. AND HOW MUCH IT IS REALLY

DRIVING HIM CRAZY THAT THESE LEAKS KEEP COMING OUT ABOUT

MUNITIONS AND OTHER THINGS HE SAYS ENDANGERING NATIONAL

SECURITY GROUP IT'S UNUSUAL AND CREATING AN ENVIRONMENT OF FEAR.

CHRISTINA: THANK YOU BOTH SO MUCH FOR

JOINING US. WE APPRECIATE IT.

IT'S INTERESTING. WE WERE TALKING ABOUT HOW THEY

ARE CLAIMING THE LEAKS ARE FAKE NEWS BUT THEN GOING AFTER THE

LEAKERS. THERE IS SOMETHING THERE THEY

DIDN'T WANT TO GET OUT. JEFF: ABSOLUTELY.

THE PRESIDENT HAS A LOT OF THOUGHTS ABOUT THE MEDIA BUT

HE'S ALSO SOMEONE WHO TALKS A LOT TO THE PRESS.

NOT ONLY IN PUBLIC BUT ALSO ON THE PHONE.

NBEFORE HE BECAME PRESIDENT OF THE UNITED STATES, HE WAS A

LEADER HIMSELF. HE'S ALSO SOMEONE WHO HAS

SIGNED NONDISCLOSURE AGREEMENTS. IT'S ALL WITHIN HIS WHEELHOUSE.

CHRISTINA: HAVING COVERED THE LAST

ADMINISTRATION, THIS PRESIDENT TALKS TO THE PRESS MUCH MORE

THAN THE LAST ONE DID.

NEW DETAILS ON THE TIMING OF ANTHROPIC'S HIGHLY ANTICIPATED

PUBLIC DEBUT. STREAM US WHEREVER YOU LISTEN

TO PODCASTS AND ON BLOOMBERG RADIO. WE WILL BE RIGHT BACK.

♪

CHRISTINA: THANKS FOR JOINING US LIVE ON

BLOOMBERG'S WEEKEND. I AM LISA MATEO. LISA:

OFFICIALS IN NEPAL SAY RESCUERS SAVED A WOMAN FOUND ALIVE 10

DAYS AFTER DEVASTATING FLOODS HIT THE COUNTRY.

ABOUT 900 WORKERS ARE MISSING FROM 12 HYDRO-POWERED PROJECTS

ACROSS NEPAL WITH ROUGHLY 500 BELIEVED TO BE TRAPPED IN

VARIOUS TUNNELS. IS THE FIRST JUSTICE DEPARTMENT

PROSECUTION OF AN OFFICER. CHRISTIAN CASTRO WAS RELEASED

FROM FEDERAL CUSTODY FRIDAY AFTER APPEARING IN COURT.

HE'S CHARGED WITH LYING TO INVESTIGATORS ABOUT THE

CIRCUMSTANCES THAT LED TO THE SHOOTING OF A VENEZUELAN MAN.

THE DEFENSE ATTORNEY SAID CASTRO INTENDS TO PLEAD NOT

GUILTY IN THE CASE. IN COMPANY NEWS, A SETBACK TO A

NEW APPROACH TO PREVENT CARDIOVASCULAR DISEASE.

AFTER A TRUCK FROM NOVARTIS FAILED TO REDUCE THE RISK OF

HEART ATTACKS -- DRUG FROM NOVARTIS FAILED TO REDUCE THE

RISK OF HEART ATTACKS AND STROKES.

IT DID NOT TRANSLATE INTO FEWER CARDIOVASCULAR DEATHS, HEART

ATTACKS AND STROKES COMPARED TO THE PLACEBO.

A WIN FOR ASTRAZENECA AFTER THE FDA APPROVED ITS BREAST CANCER

PILL. IT HAS THE POTENTIAL TO

EVENTUALLY BRING IN MORE THAN $5 BILLION IN ANNUAL SALES.

WALL STREET IS NOT SO OPTIMISTIC ABOUT IT.

THE VENICE FILM FESTIVAL CONTINUES.

GEORGE CLOONEY AND MAGGIE GYLLENHAAL TOOK TIME TO STOP

FOR PHOTOS ON THE RED CARPET. THE FESTIVAL RUNS THROUGH

SEPTEMBER 12. CHRISTINA: SHE HAS SOME SASSY COMMENT

ABOUT WHY THERE AREN'T MORE WOMEN DIRECTORS. LOOK THEM UP.

JEFF: THANKS, LISA. STOCKS ENDED LOWER FRIDAY

FOLLOWING A SURPRISINGLY STRONG AUGUST PAYROLL REPORT.

SHOWING TRIPLE THE NUMBER OF EXPECTED JOBS ADDED IN THE U.S.

CHRISTINA: THAT'S RIGHT. THE REPORT WITH INFLATION STILL

HIGH IS ADDING TO EXPECTATIONS OF A FED RATE HIKE.

WITH US NOW, WE HAVE JONATHAN, THE MANAGING DIRECTOR AND CHIEF

EQUITY'S TRAGEDY -- STRATEGIST AT SEAPORT PARTNERS.

YOU THINK THE MARKETS ARE CORRECT.

IT'S 50-50, MARKETS ARE BETTING WHETHER OR NOT THEY ARE GOING

TO HIKE. YOU ARE FORESEEING A HIKE IN

THIS JOBS REPORT.

>> THE JOBS REPORT IS BETTER THAN WE WERE STATING WITH THE

PAYROLL NUMBERS.

YOU ADJUSTED UP THE PRIOR PERIOD NUMBERS.

THIS WAS A GANGBUSTERS REPORT. AND IT REAFFIRMED WHAT WE

ALREADY KNOW, THAT THE ECONOMY IS REALLY QUITE ROBUST. AND SO,

THE MARKET IS CORRECTLY ASSUMING THAT THE FED IS GOING

TO RAISE RATES. WARSH TOLD US THAT IF THINGS

LOOK STRONG, HE IS INCLINED TO RAISE RATES.

AND I THINK THAT IS WHAT THE MARKETS EXPECT.

SO, YOU ASK WHAT WOULD THE MARKET DO WHEN IT COMES TO

FRUITION. NOTHING, BECAUSE IT ONLY

RESPONDS WHEN IT IS SURPRISED. AND IT WON'T BE SURPRISED.

>> THE PRESIDENT FEELS VERY STRONGLY ABOUT THIS ISSUE.

HE MADE THE CASE YESTERDAY THAT THIS WAS BASICALLY A SIGN OF A

STRONG ECONOMY. CHRISTINA: THROUGH TRUTH SOCIAL.

JEFF: AS HE NORMALLY DOES, AND MADE A

CASE FOR WHY THE FED SHOULD CUT INTEREST RATES.

THE VICE PRESIDENT DID THE SAME THING THE DAY BEFORE.

HE'S OBVIOUSLY PUT IN WARSH AS THE NEW FED CHAIR.

BUT THE PRESSURE IS ON. WILL THAT HAVE ANY IMPACT, DO

YOU THINK? JONATHAN:

WHEN YOU STUDY MARKETS, IT'S A LOT ABOUT INCENTIVES.

SO, DOES THE PRESIDENT HAVE AN INCENTIVE FOR LOWER INTEREST

RATES AS WE MOVE INTO THE MIDTERMS? SURE.

DOES WARSH HAVE AN INCENTIVE TO BE SENSITIVE TO DEMAND?

CHRISTINA: I WAS GOING TO BE MY QUESTION.

-- THAT WAS GOING TO BE MY QUESTION. JONATHAN: ALSO YES.

IT'S NOT IRRATIONAL AND NOT UNEXPECTED.

IT WILL KEEP YOU GUYS BUSY WITH NEWS HEADLINES AND CONVERSATION.

BUT, WE CAN SAVE THE TIME. THEY ARE LIKELY TO MOVE AND THE

PRESIDENT WILL YELL AND IT WON'T MATTER.

CHRISTINA: -- AND REVISED IT TO A GAIN.

I'VE COVERED THESE QUITE A BIT. I DON'T REMEMBER SEEING ONE OF

THOSE RECENTLY. DOES THAT CONCERN YOU THAT THE

NUMBERS WERE THAT OFF LAST MONTH?

OR IS IT, I KNOW AUGUST IS A HARD MONTH IN GENERAL. JONATHAN:

THERE'S ALL KINDS OF WACKY SEASONALITY THINGS WITH PEOPLE

GETTING JOBS OVER THE SUMMER. CHRISTINA: ALSO, THE WORLD CUP.

JONATHAN: AND TEACHERS GO IN AND OUT AND

THERE'S ALL KINDS OF THINGS LIKE THAT.

BUT NO, THESE NUMBERS GET REVISED.

THE BEST WAY TO LOOK AT THEM IS LOOK AT THEM ON A THREE MONTH

ROLLING AVERAGE. IF YOU LOOK ON THE BLOOMBERG

TERMINAL, THEY LOOK QUITE JUMPY. IF HE SMOOTH THEM OUT, YOU DO

SEE A TREND. THE MOST IMPORTANT THING -- IF

YOU SMOOTH THEM OUT, YOU DO SEE A TREND.

THERE'S NOT A LOT OF NEW PEOPLE ENTERING THE LABOR FORCE.

WE ARE PROBABLY ABSORBING EVERYBODY WHO WANTS A JOB. JEFF:

IS THERE ANYTHING CONCERNING IN THE REPORT TO YOU OR TO

ECONOMISTS? JONATHAN: THERE ARE THINGS I AM CONCERNED

ABOUT. I AM PRETTY OPTIMISTIC. THERE ARE THINGS I AM ALWAYS

CONCERNED ABOUT IN THIS JOBS REPORT WAS NOT ONE OF THEM.

CHRISTINA: FAIR ENOUGH. WE ARE NEARING THE END OF THE

EARNINGS SEASON. YOU SAID YOU HAD A LOT TO SAY

ABOUT THAT. IT WAS A GANGBUSTERS EARNINGS

SEASON. MAYBE NOT SO MUCH. TALK US THROUGH WHAT YOU ARE

SAYING -- SEEING. JONATHAN:

EARNINGS GREW YEAR-OVER-YEAR BY ABOUT 55%.

JUST TO PUT IT IN PERSPECTIVE, A TYPICAL EARNINGS SEASON GROWS

YEAR-OVER-YEAR BY 9%. THE ONLY TIME WE HAVE SEEN

ANYTHING LIKE THIS IS WHEN YOU'RE LEAVING A RECESSION AND

YOU ARE COMPARING THIS V-SHAPED POUNDS WITH THE ECONOMY IS

IMPROVING AGAINST A REALLY LOUSY QUARTER OF A YEAR AGO

BECAUSE WE WERE IN THE MIDDLE OF A RECESSION.

IT WAS AN ACCOUNTING CHANGE WHICH BASICALLY FORCES THESE

TECH COMPANIES TO REALIZE THE GAINS ON THEIR PASSIVE

POSITIONS IN ANTHROPIC OR, YOU KNOW, SOME OF THESE OTHER

COMPANIES. AND AS A RESULT, FIRST, THAT

ALONE WAS 55% GOES INTO THE LOW 30'S.

THAT WAS 2.5 EARNINGS SEASONS WORTH OF EARNINGS.

BY THE WAY, IT'S NOT LIKE -- IT WAS IN THE PROFITABILITY OF

THESE COMPANIES -- WASN'T THE PROFITABILITY OF THESE

COMPANIES. WE HAVE TARIFF REFUNDS.

IT'S REALLY HARD TO KNOW EXACTLY HOW MUCH THAT PLAYS

THROUGH. BUT, I AM GUESSING 3% OF -- 3%

OF 55 DOES NOT SOUND LIKE A LOT. BUT IF A TYPICAL EARNINGS

SEASON IS 9%, THAT'S A THIRD OF THE EARNINGS SEASON FROM TARIFF

REFUNDS.

LET'S SAY, JEFF, YOU ARE NVIDIA AND CHRISTINA, YOU ARE META AND

YOU SELL CHRISTINA A CHIP. YOU REALIZE THE REVENUE ON THAT

IMMEDIATELY. BUT CHRISTINA DOES NOT QUITE

REALIZE THE EXPENSE BECAUSE SHE HAS TO WAIT UNTIL HER DATA

CENTER IS BUILT AND THEY DEPRECIATE OVER FIVE YEARS.

THERE IS THIS REVENUE RECOGNITION AGAINST EXPENSE

RECOGNITION THAT, NORMALLY, IS KIND OF A SHOULDER SHRUG.

BUT RIGHT NOW, IT IS A HUGE, BIG DEAL. JEFF:

DID I GET THE BETTER DEAL? CHRISTINA:

I FEEL LIKE THIS IS GIRL MATH. JONATHAN:

YOU GOT THE MONEY BUT YOU ARE NOT SEEING THE OTHER SIDE OF IT.

YOU NORMALLY THINK THAT HIGHER OIL PRICES ARE GOING TO BE A

BAD THING. BUT THE U.S. IS AN OIL EXPORTER.

AND THE ENERGY SECTOR, EARNINGS WERE LIKE 140%.

IT MIGHT BE 4% OF THE S&P PER 140% IS SUCH A BIG NUMBER.

THERE'S EVEN MORE -- LIKE EVERYTHING COULDN'T GET BETTER,

THE BANKS ARE DOING THIS ENORMOUS AMOUNT OF LENDING AND

IPO'S AND THEY ARE MAKING GOBS OF MONEY.

AND FOR SOME REASON, THE ESTIMATES WERE THAT THAT WAS

NOT GOING TO HAPPEN. IT WASN'T IN THE NUMBERS.

I COULDN'T UNDERSTAND WHY THE ESTIMATES WERE HIGHER.

EVERYTHING WORKED IN FAVOR OF THESE NUMBERS. CHRISTINA:

BUT DOESN'T ANY OF THAT WORRY YOU?

IT SEEMS LIKE A LOT OF NUMBERS. IF YOU TORTURE THE NUMBERS

ENOUGH, THEY WILL CONFESS. JONATHAN:

YOU DIDN'T HAVE TO TORTURE THESE. CHRISTINA:

WE ARE TALKING ABOUT CIRCULAR CREDIT, PRIVATE CREDIT CRUNCHES.

WE ARE TALKING ABOUT THESE VALUATIONS AND HOW REAL THEY

ARE AND WHETHER THEY CAN PUT UP PROFITABILITY TO JUSTIFY WHAT

THEY ARE GOING OUT AS AN IPO. YOU DON'T WORRY THAT THIS IS

COMING FOR A CRASH DOWN OR A LETDOWN NEXT SEASON OR IN THE

FUTURE? JONATHAN: I WANT TO TAKE ON TWO OF THE

THINGS YOU SAID. ONE WAY OR ANOTHER, YOU

UNDERESTIMATING THE OTHER. THE VALUATIONS ARE REALLY LOW.

AND YOU CAN'T GO -- IF THE STOCK GOES UP FROM 10 TO 20,

ITS VALUATION DOESN'T GO UP, ITS PRICE WENT UP.

IF THE EARNINGS WENT UP FOUR FOLD, THE VALUATION WENT DOWN.

THE VALUATION ON TECH COMPANIES IS BELOW THE LONG-TERM AVERAGE

NOW. IF THERE IS ANYTHING EXPENSIVE,

IT IS NON-TECH STUFF, BECAUSE THE EARNINGS AREN'T COMING

THROUGH. THERE IS AN ISSUE AND YOU KIND

OF HIT UPON IT. WE HAVE TO RAISE AN ENORMOUS

AMOUNT OF CAPITAL TO FEED THE BEAST. AND IT WOULD BE ONE

THING IF WE WERE JUST RAISING CAPITAL FOR DATA CENTERS AND AI

COMPANIES AND ALL THIS TYPE OF STUFF. BUT, WE ARE, ON ONE HAND,

RECORD LEVEL OF CAPITAL RAISES. SOME OF THAT IS DIRECT BANK

FINANCING AND REVOLVING LINES OF CREDIT.

THERE IS A MILLION DIFFERENT BUCKETS BUT IT'S ALL FINANCING

THIS STUFF. WE ARE ALSO SEEING THE LARGEST

INCREASE IN GOVERNMENT SECTOR BORROWING, BECAUSE WE HAVE

DEFICIT PROBLEMS. AND THEY ARE COMPETING WITH EACH OTHER.

AND YOU HAVE TO ADD THOSE TOGETHER.

AND IT REALLY DOES MEAN THAT THERE IS -- WE ARE LIKELY TO

SEE HIGHER 10 YEAR BOND YIELDS. IF YOU ASKED ME IF WE ARE

CONCERNED ABOUT THE FED, 25 BASIS POINTS, THAT DOESN'T

MATTER. BUT THE FACT THAT YOU COULD SEE

THE LONG END OF THE CURVE MOVE UP MEANINGFULLY, THAT I THINK

IS SOMETHING TO BE CONCERNED ABOUT. JEFF:

ONE OF THE THINGS THAT'S STRIVING EARNINGS FOR A LOT OF

COMPANIES IS AI. THIS WEEK, NVIDIA ACQUIRED

HUGGING FACE FOR NEARLY 3 BILLION.

WHAT DOES A MOVE OF THIS SIZE SIGNAL ABOUT THE AI TRADE GOING

FORWARD? JONATHAN: FIRST THING IS I THINK THEY

PAID 80 TIMES REVENUES. JEFF: SEEMS LIKE A LOT.

JONATHAN: RIGHT. I THINK YOU HAVE TO STRIP IT

BACK. AS A STRATEGIST, I AM LESS FOCUS ON WHAT DOES THIS

SPECIFICALLY MEAN FOR THE IPO OF THE COMPANY OR SOMETHING

ELSE, BUT WHAT'S THE BIG STORY HERE?

IT NUMBER ONE IS -- THE FIRST THING IS THESE COMPANIES ARE

GENERATING GOBS OF CASH FLOW.

THEY HAVE TO USE IT SO THEY CAN RETURN IT TO SHAREHOLDERS OR

MAKE INVESTMENTS THAT SUPPORT OTHER THINGS. WHAT WOULD YOU DO?

CHRISTINA: THIS IS NOT A PROBLEM I HAVE

HAD, GOBS OF MONEY. THIS IS NOT A CONCERN THAT

PLAGUES ME ON A DAILY BASIS. JONATHAN:

IT'S ONE MONTH OF NVIDIA'S CASH FLOW.

SO, IT DOESN'T -- AND THERE'S BENEFITS TO THEIR ROLE IN THE

ECOSYSTEM. THE INFORMATION THEY GET FROM

IT. I'M NOT EVALUATING WHETHER THIS

WAS A GOOD OR BAD TRANSACTION. BUT I THINK YOU HAVE TO PUT IT

IN THE BROADER CONTEXT. BY THE WAY, IF YOU LISTEN TO

ALL OF THE OTHER PLAYERS IN THE SPACE, THEY ARE ALL INVESTING

IN A VARIETY OF THESE THINGS AND THEY ARE VIEWING IT AS AN

ECOSYSTEM IN A BASKET THAT THEY WANT TO EXPOSE THEMSELVES TO.

JEFF: WE SHOULD KNOW THE DEAL INCLUDES BILLION AS A

RETENTION PLAN TO KEEP EMPLOYEES AT HUGGING FACE.

CHRISTINA: WE SHOULD NOT KNOW THAT. JEFF:

I FELT BETTER BEFORE I KNEW THAT TOO. CHRISTINA:

ANTHROPIC IS UPPING ITS CREDIT LINE TO 5 MILLION.

THAT IPO MIGHT NOT HAPPEN UNTIL OCTOBER.

IS THAT A SIGN OF ANYTHING OR IS THAT JUST TIMING? JONATHAN:

I'M NOT SURE. FIRST OF ALL, IT'S NOT CRAZY

THAT YOU WOULD SEE INVESTMENT BANKERS POSTURING FOR AN IPO.

IT'S A SIGN OF THE EXACT STORY WE ARE TALKING ABOUT WHICH IS

THERE'S A LOTTA FINANCING NEED IN ALL OF THIS ACTIVITY.

AND THIS IS JUST PART OF IT. SOME OF IT IS ON BALANCE SHEET.

SOME OF IT IS THROUGH LINES OF CREDIT OR THINGS LIKE THAT.

CHRISTINA: IF ANYONE YOU NEEDS TO KNOW --

IF ANYONE YOU KNOW NEEDS TO PARK A COUPLE MILLION, I AM

HAPPY. -- I AM HAPPY TO HELP.

THANK YOU SO MUCH FOR MAKING A SMARTER ON ALL OF THOSE THINGS.

JEFF: COMING UP, A NEW PODCAST FOCUSING ON THE INTERSECTION OF

POLITICS AND CULTURE IN SMALL-TOWN AMERICA.

WE WILL TALK TO THE HOST OF "OUR TOWN,"

NEXT ON "BLOOMBERG THIS WEEKEND."

LISA: THANK YOU FOR JOINING US LIVE

ON BLOOMBERG THIS WEEKEND. I AM LISA MATEO.

NVIDIA'S PARTNER CLIMBED 52% THANKS TO AI SERVER MOMENTUM.

THEY CAME IN AT JUST OVER 29 BILLION DOLLARS.

THE TAIWANESE COMPANY'S MONTHLY SALES ARE SEEN AS A CHECK IN

FOR THE AI SECTOR AS CONCERNS GROW ABOUT OVERCAPACITY, RISING

DEBT LEVELS AND FIERCE COMPETITION.

HON HAI ALSO KNOWN AS FOXCONN.

BLOOM ENERGY, ALUMINA AND EVERY PURE -- EVERPURE ARE JOINING

THE S&P 500.

PAWS STARTED AND TAILS WAG FOR

THE CITY'S FIRST DOG PAWTION SHOW.

IT IS DESIGNED TO CELEBRATE CREATIVITY WHILE PROMOTING

RESPONSIBLE PET OWNERSHIP. IN CASE YOU ARE WONDERING, IT

REFERS TO THE TRADITIONAL FILIPINO CLOTHING.

INCLUDING STYLES WORN BY FILIPINO MEN AND WOMEN.

FOR THOSE OF YOU ON RADIO, YOU ARE MISSING IT.

YOU NEED TO SEE THIS VIDEO. IT IS FANTASTIC.

THE COSTUMES ARE GREAT. WE HAVE TO GET ONE FOR BRUTUS.

CHRISTINA: WE ABSOLUTELY DO. LISA, THANK YOU SO MUCH.

I WANT A PAIR AS WELL. JEFF: WE ARE LESS THAN TWO MONTHS

AWAY FROM THE MIDTERM ELECTIONS WITH VOTERS IN CITIES ACROSS

AMERICA DECIDING WHETHER TO CHANGE THE BALANCE OF POWER IN

WASHINGTON. CHRISTINA:

A NEW PODCAST FOCUSES ON A SMALL TOWN IN TENNESSEE.

IT HAS JUST OVER 1000 RESIDENTS WHERE A BATTLE FOR IDENTITY IS

SPREADING FAR BEYOND THE CONFINES OF THIS COMMUNITY.

>> OUR HOMETOWN IS NOT A TEST TUBE.

>> THE BATTLE FOR THE FUTURE OF AMERICA PLAYS OUT IN ONE SMALL

TOWN.

>> DEVELOPERS WITH RIGHT-WING THAIS HAVE PURCHASED HUNDREDS

OF ACRES OF LAND.

>> WE NEED CITIES ON A SHINY HILL.

>> THIS IS "OUR TOWN," A PODCAST ABOUT WHAT HAPPENS

WHEN A TOWN BECOMES THE SITE OF A SOCIAL EXPERIMENT AND FIGHTS

BACK. CHRISTINA: WE SAT DOWN WITH THE HOSTS.

THANK YOU SO MUCH FOR JOINING US. HOW DID THIS HAPPEN?

HOW DID YOU TWO CONNECT, HOW DID YOU FIND THE STORY AND HOW

DID IT END UP AS A PODCAST?

>> I'M BASED IN NASHVILLE, THIS IS 80 MILES AWAY.

I, LIKE THE TOWN ITSELF, WATCHED THE FIRST KIND OF TV

NEWS STORY ABOUT IT. A PRETTY SHORT PIECE, AND I WAS

REALLY STUNNED AND I WAS CURIOUS AS TO WHAT WAS GOING TO

HAPPEN NEXT. I'VE BEEN COVERING POLITICS AND

STUFF ON THE GROUND IN TENNESSEE FOR 10 YEARS.

A LOT OF THIS FELT VERY FAMILIAR.

BUT ALSO, IT FELT REALLY FERTILE FOR EXPLORING WHAT

HAPPENS WHEN A SMALL TOWN IS FACED WITH A BIG, AMBITIOUS

PLAN BY SOME DEEP-POCKETED OUTSIDERS THAT HAVE JUST REALLY

BIG IDEAS FOR IT. THERE WAS A LOT OF BUSINESS

TIES. THERE'S VENTURE CAPITALISTS

INVOLVED. THERE IS REAL ESTATE DEVELOPERS.

AND THEN THERE IS THIS SMALL TOWN OF 1000 PEOPLE.

ALL THAT COMBINED, IT FELT LIKE IT WAS A GREAT STORY FOR

BLOOMBERG. I WAS LUCKY ENOUGH TO CONNECT

WITH SUSAN. HAVING TWO REPORTERS ON THIS

WAS REALLY GREAT. BECAUSE, IT IS A PRETTY FAR AND

WIDE NETWORK.

>> YEAH. AND I WOULD SAY THAT, YOU KNOW,

WHEN I FIRST HEARD ABOUT THIS AND TALKED ABOUT IT WITH THE

EDITORS HERE, I THINK WHAT EVERYONE PICKED UP ON WAS THAT

THIS WAS, SURE, A SMALL TOWN, 1000 PEOPLE IN THE APPALACHIAN

FOOTHILLS. BUT, IT REPRESENTED, AND THEY

WERE FIGHTING FOR AND AGAINST A LOT OF IDEAS THAT WERE

CIRCULATING ALL AROUND THE U.S. CHRISTINA:

WE WERE TALKING BEFORE WE CAME ON. I SAID WAIT, IS THIS THE

COMMUNITY OF WHITE SUPREMACISTS I HEARD ABOUT TRYING TO DO THIS

THING AND IT WAS LIKE OH NO, THAT ONE WAS IN ARKANSAS.

AND THEN THERE IS ANOTHER ONE IN NORTH DAKOTA.

THIS IS MORE COMMON ACROSS THE COUNTRY THAN I REALIZED.

>> YEAH. UNLIKE SOME OF THOSE, THIS IS A

GROUP OF PEOPLE THAT WERE BUYING UP LAND AND TRYING TO

BRING PEOPLE FROM ALL AROUND THE COUNTRY TO THIS LITTLE TOWN

THAT ALREADY EXISTS. THE PEOPLE WHO LIVE THERE LOVE

THEIR TOWN. THIS IS NOT A BLANK SLATE.

JEFF: IT'S ALSO PEOPLE WHO COME IN

WITH DIRECT CONNECTIONS TO THE TRUMP ADMINISTRATION.

PETE HEGSETH I THINK IS ONE OF THEM.

TELL US A LITTLE MORE ABOUT THAT.

>> YEAH, SO THERE IS A WHOLE NETWORK AND LIKE THE TENTACLES

OF IT, AS YOU FOLLOW THE MONEY AND YOU GO OUT FROM THIS VERY

SMALL TOWN, YOU REALIZE THAT THESE ARE IDEAS THAT ARE

CIRCULATING AMONG REPUBLICANS, AMONG FAR RIGHT CONSERVATIVES,

WHICH INCLUDE THE MEGA-DONORS, WHICH INCLUDE IDEOLOGIES THAT

GO ALL THE WAY TO PETE HEGSETH AND THE TRUMP ADMINISTRATION.

AND THAT THERE IS THIS SORT OF NETWORK OF INDIVIDUALS WHO TALK

TO EACH OTHER, OR WHO SHARE IDEAS AND THAT THE IDEAS, WHILE

THEY FLOW UP TO THE ADMINISTER RATION, THEY ARE ALSO FLOWING

DOWN INTO THIS TINY LITTLE TOWN -- ADMINISTRATION, THEY ARE

ALSO FLOWING DOWN INTO THIS TINY LITTLE TOWN.

ALL OF THESE BIG ISSUES WE ARE GRAPPLING WITH ABOUT WHAT

AMERICA IS, WHO WAS AMERICAN, WHAT'S THE FUTURE OF THIS

COUNTRY AND ITS VALUES, THEY ARE ALL BEING WORKED OVER AND

BATTLED IN THIS TINY LITTLE TOWN. CHRISTINA:

ONE OF THE OTHER THINGS I THOUGHT WAS INTERESTING IS THEY

REALLY THOUGHT THIS WOULD BE THE PERFECT PLACE FOR THIS.

THIS IS, YOU KNOW, TENNESSEE IS A RED STATE.

GAINSBOROUGH AND THE AREA AROUND IT VOTED 81% FOR

PRESIDENT TRUMP. IT'S IN THE FOOTHILLS OF

APPALACHIA. THEY ARE CHRISTIAN CONSERVATIVES BUT APPARENTLY

NOT THIS KIND OF CHRISTIAN CONSERVATIVE.

>> YEAH. AND I THINK FOR A LOT OF

LISTENERS, IT MIGHT BE A LITTLE BIT SURPRISING.

YOU HAVE TO RECALIBRATE YOUR EXPECTATIONS.

IF YOU LOOK FROM THE STATISTICS, YOU MIGHT EXPECT,

AS I THINK THE FOLKS AT BRIDGE RUN OR THE PROPERTY DEVELOPMENT

DID. CHRISTINA: AND FRANKLY IF YOU ARE GOING IN

WITH A STEREOTYPE -- >> YES, THAT THIS WAS GOING TO BE A

WELCOMING PLACE FOR THEM. THERE ARE PEOPLE WHO MAY HAVE

VOTED FOR TRUMP OR VOTED REPUBLICAN WHO ARE

CONSERVATIVE, WHO ARE CHRISTIAN, WHO GO TO CHURCH BUT

WHAT THE IDEOLOGY AND THE CHRISTIAN ETHOS THEY ARE TRYING

TO BRING THEIR IS -- T HERE IS NOT ACTUALLY ALIGNED.

THEY BELIEVED THEY WERE MOVING TO A PLACE WITH ALIGNED VALUES

AND THAT'S NOT THE CASE. I THINK I WAS A REALLY BIG

SURPRISE FOR THE DEVELOPERS. -- THAT WAS A REALLY BIG

SURPRISE FOR THE DEVELOPERS. JONATHAN:

TELL US ABOUT THE DEVELOPERS -- CHRISTINA:

TELL US ABOUT THE DEVELOPERS. CHRISTIAN NATIONALISM IS A

THING. TO WHAT EXTENT WAS THAT INFUSED

WITH THE DEVELOPERS? JONATHAN:

IT'S DEFINITELY PART OF THE BIGGER NETWORK AND IT IS A

REALLY IMPORTANT IDEA. NOT EVERYONE WHO WE TALK ABOUT

IDENTIFIES AS A CHRISTIAN NATIONALIST. SO I WANT TO BE

CAREFUL ABOUT THAT.

WHAT WE DISCOVERED IS RIDGE RUNNER IS RUN BY A GUY NAMED

JOSH, WHO HAS MOVED TO GAINSBOROUGH.

HE GREW UP IN TENNESSEE AND ATTENDED HARVARD LAW SCHOOL.

STARTED THIS PROPERTY DEVELOPMENT COMPANY AND

CONNECTED WITH A VENTURE CAPITAL FIRM CALLED NEW

FOUNDING, RUN BY SOMEONE NAMED NATE FISHER OUT OF TEXAS.

AND WHAT THEY WANT TO DO IS CREATE COMMUNITIES, AS THEY ARE

DOING IN GAINSBOROUGH. AND ALSO, START BUSINESSES.

FOUNDING VENTURE CAPITAL, THEY INVEST IN A LOT OF DIFFERENT

BUSINESSES. ALL CENTERED AROUND AN IDEOLOGY

THAT THERE IS SORT OF A SUPERIORITY TO THE CHRISTIAN

WAY OF LIFE, TO CHRISTIAN VALUES AND THAT THOSE NEED TO

BE EXPRESSED MUCH MORE STRONGLY THAN THEY ARE CURRENTLY BEING

EXPRESSED IN THE UNITED STATES. THE EXTREME VERSION OF THAT IS

CHRISTIAN NATIONALISM. CHRISTINA:

WHEN I FIRST SAW THIS PODCAST POP UP IN ALL OF OUR STUFF, I

WAS LIKE THAT'S A GOOD STORY BUT WHAT A BUMMER.

BUT IT'S NOT A BUMMER OF A STORY.

THIS IS A SPUNKY LITTLE TOWN THAT REALLY DID BELIEVE IN THE

BEST ATTRIBUTES OF THEIR CHRISTIANITY AND KIND OF PUSHED

BACK. TALK TO US BEFORE WE LET YOU GO

ABOUT THE REDEMPTION ARC OF THE STORY AND WHAT ENDS UP

HAPPENING.

>> THAT WAS ONE OF THE BEST AND MOST SURPRISING THINGS WE CAME

ACROSS. THIS IS A STORY FILLED WITH

HOPE. IT'S A STORY ABOUT A SMALL TOWN

THAT DECIDES TO STEP INTO THE DEMOCRATIC PROCESS TO STEP INTO

CIVIC ACTION IN ALL OF THESE REALLY INTERESTING WAYS.

A SIT IN AT THE DAIRY QUEEN. TAKING OUT BILLBOARDS, SAYING

WE LOVE EVERYONE, ALL ARE WELCOME.

AS MUCH AS IT IS A STORY ABOUT THESE BIG FORCES AT PLAY IN OUR

COUNTRY, THAT SOME PEOPLE FEEL ARE VERY THREATENING, IT'S ALSO

A STORY ABOUT A COMMUNITY FIGURING OUT WHAT ITS TRUE

VALUES ARE AND ACTING ON THOSE VALUES AND STEPPING INTO THE

PROCESS OF BEING ACTIVE CITIZENS.

SO, IT'S JUST -- IT HAS SO MUCH HOPE. CHRISTINA:

YOU CAN LISTEN TO THE FOUR PART PODCAST "OUR TOWN,"

ON IHEART RADIO, APPLE TUNES OR WHERE YOU GET YOUR PODCASTS.

UP NEXT, IT'S BTW. STICK AROUND. WE WILL BE RIGHT BACK. ♪

CHRISTINA: WELCOME BACK TO BLOOMBERG'S

THIS WEEKEND OR "BTW." JEFF: I'M GETTING IT. CHRISTINA:

CONTROL ROOM SAID W-2. I'M CHRISTINA RUFFINI.

THAT'S NOT DAVID GURA. IT'S JEFF MASON.

YOU KNOW WHO ELSE IS HERE? LISA MATEO WITH SOME OF THE

STORIES WE MAY HAVE MISSED. LISA: YOU KNOW HOW THEY SAY THE

YOUNGER GENERATION IS NOT DRINKING AS MUCH.

APPARENTLY THEY ARE DRINKING BUT THEY DON'T LIKE THE BUBBLES.

LET'S GET TO THIS. CHRISTINA: THEY DON'T LIKE THE BUBBLES?

LISA: GEN Z'S DISTASTE FOR BUBBLY

BOOZE REMAKES CANNED COCKTAIL MARKET.

WE ARE TALKING ABOUT VODKA WATER.

THINK ABOUT THE BUBBLES, THE CARBONATION.

TEQUILA BEING MIXED WITH WATER AND SODA.

IF YOU WANT IT, THERE -- THERE'S SURFSIDE, STATESIDE AND

SON CRUISER. A LOT OF THESE BIG NAME ALCOHOL

BRANDS ARE INTRODUCING THEM. I'M A BIG FAN OF THE STATESIDE.

JEFF: I MAY HAVE TO TRY THAT AT SOME

POINT. LISA: IT'S A LITTLE EARLY BUT IT'S

NEVER TOO EARLY.

THE REASON THEY DON'T LIKE THE BUBBLES IS THEY SAY YOU DON'T

FEEL SO FULL WITHOUT THE BUBBLES.

THE BUBBLES MAKE THEM FEEL FULL. PEOPLE WHO HAVE ACID REFLUX

DON'T LIKE IT BECAUSE THE BUBBLES DON'T HELP THEIR

DIGESTIVE SYSTEM. GEN Z IS VERY HEALTH CONSCIOUS.

CHRISTINA: IT'S THE SAME GENERATION

KEEPING SELTZER COMPANIES IN BUSINESS LIKE LACROIX AND

WATERLOO AND THEY ARE DOING GANGBUSTERS. LISA:

IT'S STARTING TO DECLINE. THE BUBBLY WATER SALES ARE

DECLINING TOO. IT'S NOT JUST ALCOHOL, ITS

BUBBLY WATER SALES. THEY JUST DON'T LIKE THE

BUBBLES ANYMORE. JEFF: I'M SURPRISED TO SEE THEM

DRINKING AT ALL. LISA: THEY DO, APPARENTLY. CHRISTINA:

ARE YOU A SELTZER GUY OR DO YOU STILL DO SPARKLING? JEFF:

I DO BOTH. CHRISTINA: I AM TRYING TO CUT DOWN ON MY

BUBBLE WATER. IT'S EXPENSIVE AND IT'S A

LITTLE HEALTHIER TO DRINK REGULAR WATER. LISA:

IT'S THE BUBBLES AND THEY LIKE IT BECAUSE IT'S LESS SUGAR ON

TOP OF IT. WE ARE NOT DONE WITH GEN Z.

WE HAVE ANOTHER STORY ON TOP OF IT. THESE ARE MY KIDS.

THEY ARE SAYING THINGS OUT LOUD LESS AND THAT HAS LED TO THIS

NEXT STORY. THE GINS THE STAIR AND THE

DECLINE OF SAYING THINGS OUT LOUD.

THIS IS AN ANALYSIS THAT FOUND AMERICANS AND PEOPLE IN SEVERAL

OTHER COUNTRIES, YOU ARE SPEAKING ROUGHLY 300 FEWER

WORDS A DAY WITH EACH PASSING YEAR. THIS IS CRAZY.

THE DROP, ESPECIALLY SEEN IN PEOPLE YOUNGER THAN 25.

IF YOU GO ON TIKTOK THERE'S VIDEOS WHERE KIDS DON'T -- THEY

GO TO THE COUNTER AND THE OTHER KID POINTS.

THE KID HANDS THEM THE THING AND THEY NOD BACK AT EACH OTHER.

THEY ARE NOT TALKING. THEY ARE JUST DOING THE WHOLE

EXCHANGE BACK AND FORTH. AND IT'S BECAUSE YOU ARE

TEXTING, YOU ARE ON SOCIAL MEDIA, YOU'RE DOING THINGS --

CHRISTINA: AND THEY WERE IN COVID AND THEY

DIDN'T GO OUT. I NOTICED IT IN ELEVATORS A LOT.

NOPE HE LIKES TO TALK IN ELEVATORS BUT IT'S MUCH LESS

AWKWARD IF YOU GO HEY, WHAT FLOOR, HAVE A NICE DAY.

THAT'S WHAT WE DO. THERE'S A COUPLE OF YOUNG GEN

ZERS IN MY BUILDING AND I WAS LIKE WHAT IS THEIR DEAL AND

SOMEONE ELSE IS LIKE THEY ARE YOUNG, THEY DON'T TALK IN THE

ELEVATOR. FOR ME, IT'S MUCH MORE AWKWARD

THAN BEING LIKE HEY.

NO, THEY JUST STARE AT THEIR PHONE FOR THE EXCRUCIATINGLY

SLOW RIDE AND THEY GET OUT AND I SAY HAVE A NICE DAY AND GET

NOTHING IN RESPONSE BECAUSE I'M THE OLD LADY IN THE ELEVATOR.

JEFF: YOU SURE YOU'RE NOT GIVING THEM

THE DEATH STARE? CHRISTINA: THAT'S JUST MY FACE. [LAUGHTER]

LISA: THEY SAY IT'S A LARGER TRANSFORMATION ON HOW WE

EXERCISE OUR BRAINS BY INTERACTING WITH EACH OTHER.

WHEN YOU PRODUCE A SENTENCE, IT REQUIRES YOUR BRAIN TO PERCEIVE

THE WORDS. YOU HAVE TO COORDINATE THE

MUSCLES TO DO THIS THING AND YOU HAVE TO FORMULATE THE

RESPONSE PRAY THESE THINGS ARE HAPPENING IN A MATTER OF

SECONDS. SINCE THEY DON'T TALK AS MUCH,

THEY ARE NOT GETTING THAT KIND OF EXERCISE.

IT'S KIND OF CONCERNING. JEFF: THAT'S FASCINATING THEY HAVE

RESEARCH ON HOW MANY FEWER WORDS THEY ARE SAYING. LISA:

THEY HAVE A LOT OF TIME ON THEIR HANDS. CHRISTINA:

LISTENING AND REACTING IS A BIG PART OF PREVENTING DEMENTIA.

IF THAT CONTINUES, THAT COULD BE A CONCERN AS WELL. JEFF:

THEY MENTIONED THAT IN THE ARTICLE TOO. LISA: THE U.S.

OPEN, YOU KNOW I LOVE TALKING ABOUT IT RIGHT? SO MUCH.

HERE'S WHAT I LOVE TALKING

ABOUT MORE, IT'S ABOUT DRINKS. CHRISTINA:

THIS IS A BOOZE HAPPY SEGMENT. LISA: THE U.S.

OPEN IS A FOOD FESTIVAL WITH A SIDE OF TENNIS.

THE HONEY DO'S, $23, THAT'S THE PRICE OF IT.

-- HONEY DEUCE, IT'S $23, THAT'S THE PRICE OF IT.

IT'S THE FOOD TOO THAT YOU ARE TAKING A LOOK AT.

YOU HAVE ALL OF THESE DIFFERENT THINGS.

THERE IS 00 GLUTEN-FREE CHICKEN NUGGETS WITH CAVIAR ON

TOP. CHRISTINA: I SAW GREEN BEANS AND A THING

THAT LOOKED LIKE FRENCH FRIES PRAYED I LOVE EATING GREEN

BEANS LIKE FRENCH FRIES. THAT WOULD MAKE ME VERY HAPPY.

LISA: YES, IT'S VERY SALTY. JEFF: I WENT TO THE U.S.

OPEN ONCE. PRESIDENT TRUMP, I SAW EVERYONE

WALKING AROUND. AND I WAS LIKE WHAT ARE THESE

MELON DRINKS? I DIDN'T TRY ONE BUT THEY

LOOKED AMAZING. LISA: THE HONEY DEUCE.

IT GOES DOWN VERY SMOOTHLY. JEFF: IT LOOKS LIKE IT DOES.

LISA: THEY SOLD OVER 700,000 OF THEM

LAST YEAR. THEY ARE DEFINITELY THE POPULAR

DRINK. CHRISTINA:

ARE WE GOING TO THE U.S. OPEN THIS YEAR? JEFF: I'M NOT.

LOTS OF PEOPLE WERE IN TOWN FOR IT. CHRISTINA:

THE TRAINS WERE BOOKED. VERY EXPENSIVE OR FULL.

I SAID PEOPLE WERE COMING UP FOR THE U.S.

OPEN, ESPECIALLY FROM D.C.. WE CAN BOUNCE THE VERBAL BALLS

BACK AND FORTH HERE.

JEFF: I'VE GOT NO MELON BALLS IN MY

WALLET. CHRISTINA: IT'S NOT QUITE AS GOOD.

WE ARE COMING UP ON 9:00 A.M. IN NEW YORK.

AHEAD IN OUR NEXT HOUR, WE WILL SPEAK TO E.U.

AMBASSADORS TO THE U.S. AND MARK ESPER.

THE NEXT HOUR OF "BLOOMBERG THIS WEEKEND," IS COMING UP NOW.

♪

>> COMING UP ON "BLOOMBERG THIS WEEK IN."

-- "BLOOMBERG THIS WEEKEND."

>> PRESIDENT TRUMP DOWNPLAYS THE SCOPE OF THE IRAN WAR AFTER

SIX MONTHS OF WAR AND 18 AMERICAN DEATHS.

AMERICANS PAID THE MOST GAS ON A LABOR DAY WEEKEND EVER.

>> PRESIDENT TRUMP'S ENVOYS, JARED AND STEVE WITKOFF ARE

REPORTEDLY ON THE GROUND FOR MOSCOW, HEADING TO KYIV FOR THE

FIRST TIME.

>> THE DUTCH CENTRAL BANK IS MOVING BILLIONS OF DOLLARS OF

COAL OUT OF -- GOLD OUT OF THE UNITED STATES.

WHAT'S BEHIND IT AND WILL OTHER COUNTRIES FOLLOW SUIT?

♪ CHRISTINA: WELCOME BACK TO "BLOOMBERG THIS WEEKEND,"

I'M CHRISTINA RUFFINI. JEFF: I'M JEFF MASON IN FOR DAVID

GURA. IT IS SATURDAY, SEPTEMBER 5.

CHRISTINA: WE ARE GOING TO TALK ABOUT

EUROPE, THE PENTAGON AND TIME AND HOW GOVERNMENTS AND

BUREAUCRACIES CAN KIND OF WASTE YOUR TIME, INCLUDING SOME

GOVERNMENTS WHO HAVE DONE A LOT TO FIX THAT.

CAN YOU IMAGINE A FIVE MINUTE GOVERNMENT INTERACTION DOING

YOUR TAXES? THIS IS A THING THAT EXISTS.

ANOTHER THING THAT EXISTS, LISA MATEO.

SHE IS AN EXCELLENT REPORTER AND SHE'S GOING TO BRING US OUR

HEADLINES. LISA: WE ARE GOING TO START WITH THE

CONFLICT IN THE MIDDLE EAST WHERE THE PRESIDENT SAID HE

AGREES WITH VICE PRESIDENT JD VANCE'S COMMENTS THAT HE WOULD

NOT DESCRIBE THE HOSTILITIES AS A WAR.

>> EVERYBODY SAID, IT WAS INTERESTING BECAUSE I THINK

THAT IT HAS A LOT OF TRUTH TO IT.

WE ARE NOT FIGHTING RIGHT NOW. THERE IS NO FIGHTING.

WE CONTROL THE STRAIT OF HORMUZ. WE CONTROL IT VERY STRONGLY.

LISA: TRUMP WENT ON TO CALL IT A MILITARY CONFLICT AND SAID IT

IS VERY INTERMITTENT. ADDING IT IS SMALL POTATOES

COMPARED TO THE WARS IN VIETNAM AND AFGHANISTAN.

THE CONFLICT HAS LASTED MORE THAN SIX MONTHS AND COST OVER

$37.5 MILLION AND CASH 37.5 BILLION DOLLARS AND 18 YOUR

SERVICE MEMBERS LIVES. ACCORDING TO LATEST FIGURES

FROM AAA, THE CURRENT PRICE OF DIESEL HAS HIT A RECORD.

THE AVERAGE IS FIVE DOLLARS 88 CENTS A GALLON.

HIGHER DIESEL PRICES MEANS HIGHER TRANSPORTATION COSTS.

GAS PRICES HAVE ALSO RISEN, NOW AT AN AVERAGE OF $.14 A GALLON.

THIS DRIVER FROM PHILADELPHIA SAID SHE HAS HAD TO RETHINK HER

TRAVEL PLANS.

>> BECAUSE GAS HAS BEEN SO EXPENSIVE, WE HAVE BEEN STAYING

HOME MORE. WE ARE NOT FELT AS COMFORTABLE

TO TRAVEL. GAS SKYROCKETED -- BEFORE GAS

SKYROCKETED, WE WERE DOING WEEKEND TRIPS. LISA:

A MASSACHUSETTS JUDGE HAS DECLARED A MISTRIAL IN THE

MURDER CASE OF LINDSAY CLANCY. JURORS CANNOT AGREE WHETHER SHE

WAS RESPONSIBLE FOR THE MURDER AS SHE STRANGLED HER CHILDREN

IN 2023.

THE MISTRIAL ENABLES THE PROSECUTION TO TRY HER AGAIN.

>> WE NEED TO MAKE THINGS RIGHT. WE NEED TO MAKE SURE THAT WHEN

THERE IS POSTPARTUM, WE START LISTENING.

THAT'S NOT WHAT THEY ARE DOING RIGHT NOW.

>> CLANCY REMAINS CHARGED WITH MURDER AND WILL BE HELD IN A

PSYCHIATRIC HOSPITAL UNTIL THAT CASE IS RESOLVED. CHRISTINA:

WE HAVE A NEW STORY CROSSING THE TERMINAL THIS HOUR AS WE

HAVE REPORTS THAT STEVE WITKOFF AND JARED KUSHNER HAVE LANDED

IN MOSCOW.

THIS IS A PEACEKEEPING NEGOTIATION MISSION.

THEY ARE GOING TO RUSSIA FIRST AND THEN KYIV.

-- THE KREMLIN SPOKESPERSON, DIMITRI, CONFIRMED THE KREMLIN

RECEIVED INFORMATION THAT KYIV WOULD HALT FIRE AND THE

UKRAINIANS ARE GOING TO RECIPROCATE AS POTENT PLANS TO

MEET -- PUTIN PLANS TO MEET WITH STEVE WITKOFF.

EXPECTATIONS ARE NOT HIGH. JEFF: NOT HIGH.

STEVE WITKOFF HAS BEEN TO MOSCOW MULTIPLE TIMES AND MET

WITH PRESIDENT PUTIN MULTIPLE TIMES BUT THEY HAVE NOT BEEN TO

KYIV.

IT IS ALSO A SIGNAL FROM THE WHITE HOUSE AND FROM PRESIDENT

TRUMP'S ADMINISTRATION THAT THEY ARE REFOCUSING ON THIS

CONFLICT AFTER SPENDING A LOT OF TIME IN IRAN OVER THE LAST

SIX MONTHS. CHRISTINA: THE WHITE HOUSE WOULD BE

ARGUING THAT THE HARD ONE TO PERSUADE HIS PUTIN, THAT'S WHY

THEY ARE GOING THERE FIRST. BUT EVERYTHING METALS IN -- MATTERS

IN SOMETHING LIKE THIS. BIDEN WOULD HAVE MADE IT A

POINT TO VISIT KYIV FIRST. IT IS FRANKLY A MORE ARDUOUS STOP.

IT TAKES A LONG TIME TO GET THERE. THOSE ARE CONCERNS.

I DON'T KNOW IF THAT CHANGED BECAUSE THEY ARE PAUSING THE

STRIKES. I DON'T KNOW IF THEY ARE STILL

GOING TO GO THE SAFE ROUTE INTO KYIV. BUT THAT IS SOMETHING THAT

MATTERS IN DIPLOMATIC CIRCLES. YOU SIGNAL SUPPORT BY WHO YOU

VISIT FIRST. AND IT IS CERTAINLY GOING TO MATTER IN

EUROPE AND IN UKRAINE THAT THEY WENT TO MOSCOW INITIALLY. JEFF:

THERE HAVE BEEN MIXED SIGNALS ABOUT UKRAINE IN THE BEGINNING.

WE REMEMBER THE CONTENTIOUS MEETING PRESIDENT TRUMP HAD

WITH PRESIDENT ZELENSKYY IN HIS FIRST YEAR.

THE PRESIDENT HAS MADE IT CLEAR SINCE HIS FIRST TERM ON THAT HE

VALUES HIS RELATIONSHIP WITH PRESIDENT PUTIN, EVEN THOUGH

PRESIDENT PUTIN HAS NOT GIVEN HIM ANY OF THE THINGS HE HAS

ASKED FOR. THIS IS SOMEONE WHO CAME INTO

OFFICE, REFERRING TO PRESIDENT TRUMP NOW, SAYING HE WOULD

SOLVE THE CRISIS, FIX THE WAR IN A DAY OR TWO AND THAT HAS

NOT HAPPENED. CHRISTINA: WE HAVE SOME SOUND FROM

PRESIDENT TRUMP ON THIS ISSUE THAT WE ARE GOING TO PLAY FOR

YOU GUYS.

>> MOST OF THEM WERE SUPPOSED TO BE, IN MY OPINION, MORE

DIFFICULT THAN RUSSIA-UKRAINE. THERE IS A PERSONALITY PROBLEM

IN RUSSIA-UKRAINE. PRESIDENT ZELENSKYY AND

PRESIDENT PUTIN TRULY HATE EACH OTHER. DO YOU KNOW WHAT HATE IS?

THEY HAVE SERIOUS HATE.

I SENT STEVE WITKOFF AND JARED KUSHNER, TWO GREAT NEGOTIATORS.

THEY HAVE DONE A GREAT JOB. WE SENT THEM OVER TO SEE

WHETHER OR NOT WE CAN GET SOMETHING DONE.

AND THERE MIGHT BE A GOOD CHANCE WE WILL DO IT. JEFF:

JOINING US NOW IS THE EUROPEAN UNION AMBASSADOR TO THE UNITED

STATES. THANK YOU SO MUCH FOR JOINING

US. I WOULD LIKE TO START WITH A QUESTION FOR YOU ABOUT THE

VISIT OF STEVE WITKOFF AND JARED KUSHNER TO MOSCOW AND

UKRAINE. WHAT'S EUROPE LOOKING FOR IN

THIS MEETING AND HOW DO YOU INTERPRET THE ORDER OF THE TWO

STOPS?

>> WELL, I THINK THAT THE DIPLOMACY ACTUALLY WORKS AND WE

HAVE TO TRY TO MAKE SURE THAT WE HAVE TO TALK FIRST TO THOSE

WHO ARE OUR ALLIES. BECAUSE MOSCOW HAS NOT CHANGED

ITS WARRING. THERE ARE BOMBINGS EVERY DAY.

THE CIVILIANS ARE TARGETED. FOR US, FOR EUROPEANS, THE TOP

PRIORITY IS TO GIVE UKRAINE EVERYTHING IT NEEDS TO DEFEND

ITSELF. I HAVE TO SAY, OUR MEMBER

STATES JUST MET AGAIN WITH FOREIGN MINISTERS AND THEY ARE

STEPPING UP TO PROVIDE THE AIR DEFENSE INTERCEPTOR FOR UKRAINE.

I THINK THAT WE HAVE TO DO AT MOST TO EXTEND ALL THE AID,

WHAT WE CAN. AND ON THE OTHER SITE, THE

DIPLOMATIC SIDE, WE HAVE TO STOP RUSSIAN MISSILES.

ALSO, THERE ARE THE BOMBINGS IN THE UKRAINE.

THERE'S A LOT OF OTHER THINGS TO DO, PUTTING SANCTIONS AND

STUFF, SUPPLYING ALL OF THE PARTS.

AND COMPONENTS THAT RUSSIA IS USING FROM THE WESTERN

COUNTRIES, FROM OUR PARTNERS IN ORDER TO BE PREVENTED FROM

MAKING THOSE MISSILES WHICH FLIES OVER UKRAINE. CHRISTINA:

YOU SAID RUSSIA HAS NOT CHANGED ITS OBJECTIVES.

THEY ARE STILL GOING TOWARD THIS GOAL. BUT, THE U.S.

HAS NOT CHANGED ITS STRATEGY, EITHER.

ESPECIALLY WHEN IT COMES TO NEGOTIATIONS AND SENDING THESE

TWO INDIVIDUALS, KUSHNER AND WYCOFF.

DO YOU THINK THAT IS EFFECTIVE? DO YOU THINK THOSE TWO ARE

EFFECTIVE? DO YOU THINK THE U.S. NEEDS A NEW APPROACH AND

POSSIBLY NEW NEGOTIATORS?

>> IT'S UP OF THE UNITED STATES TO CHOOSE WHO ARE THE PEOPLE

WHO ARE TALKING. WE HAVE SEEN THE SPECIAL ENVOYS

WHO HAVE PUT QUITE A LOT OF EFFORT IN THE LAST YEAR AND THE

BIT. WE SAW THE CIA DIRECTOR TRAVELING.

I THINK WHAT IS IMPORTANT IS TO HAVE THOSE CHANNELS OF

COMMUNICATION. BUT IN PARALLEL, ACTUALLY.

WE HAVE TO BE SERIOUS.

ONE THING THAT ACTUALLY RUSSIAN LEADERSHIP UNDERSTANDS IS THE

POSITION OF STRENGTH. WE HAVE TO PUT ALL POSSIBLE

MAXIMUM PRESSURE ON RUSSIA. WE HAVE THE 21 SANCTION PACKAGE.

THE 22ND ONE IS ON THE WAY.

WE SANCTIONED RUSSIAN SHADOW SHIPS.

WE SANCTIONED RUSSIAN GAS. THE LAST DROP OF RUSSIAN GAS.

COMING IN IN EUROPE ON SEPTEMBER 30.

WE HAVE TO DO EVERYTHING, WHAT WE CAN NOT ONLY TO MAKE SURE

RUSSIA GETS THE MESSAGE, BY NOMADIC CHANNELS, BUT AS WELL

THAT RUSSIA GETS THE MESSAGE THAT WE ARE SERIOUS IN CUTTING

THEIR SUPPLY CHAINS AND STOPPING RUSSIAN -- THE RUSSIAN

WAR MACHINE. JEFF: THERE ARE REPORTS THE U.S.

CIA DIRECTOR WENT TO RUSSIA TO DELIVER A STRONG MESSAGE ABOUT

NOT TESTING NATO AND GOING AND DOING ANY INCURSIONS INTO

EUROPEAN COUNTRIES. FROM THE EUROPEAN PERSPECTIVE,

HOW REAL IS THE FEAR THAT MOSCOW WILL TRY TO TEST NATO

AND POTENTIALLY DO AN INCURSION INTO ONE OF YOUR OWN?

>> WE HAVE SEEN ESCALATION OF THEIR ATTACKS, NEAR OUR BORDERS

IN VIOLATION OF OUR AIRSPACE. THAT IS A CLEAR THREAT TO OUR

TERRITORY.

IT HAS ALL THE HALLMARKS OF STATE-SPONSORED TERRORISM AS MY

BOSS SAID. SO, YOU KNOW, WE HAVE SEEN

SINCE 2022 ACTUALLY, ALL THE RISE OF THE HYBRID ATTACKS FROM

CYBER, ESPIONAGE, IT'S NOT ONLY ACROSS THE EASTERN BORDER OF

THE E.U., BUT ACROSS THE WHOLE EUROPEAN UNION.

AND NATO COUNTRIES.

I THINK THAT -- THE AIM OF THOSE ACTS AND ATTACKS OR

HYBRID THREATS IS TO INTIMIDATE US.

TO DERAIL US FROM OUR LINE AND OUR ENDEAVOR TO SUPPORT UKRAINE.

BUT I HAVE TO SAY THAT IT HAS NOT SUCCEEDED.

AND I THINK THAT WE ACTUALLY, WE WILL CONTINUE IN THE

STRENGTH AS A EUROPEAN RESULT. CHRISTINA:

WITH THOSE HYBRID ATTACKS, IT SEEMS RUSSIA IS NOT ONLY

TESTING EUROPEAN RESULT, IT IS TESTING THE DEFINITION OF

ARTICLE FIVE, THE MUTUAL DEFENSE CLAUSE OF THE NATO

PACKED AND HOW FAR IT CAN GO BEFORE IT IS TRIGGERED.

WHETHER SOMETHING LIKE CYBER TRIGGERS IT.

WHETHER THIS INCURSION TRIGGERS IT.

WHETHER DISINFORMATION TRIGGERS IT. DOES ARTICLE FIVE NEED A

LOOKING AT? DOES IT NEED TO BE REEVALUATED?

AND DO SOME OF THE THREATS AND INCURSIONS YOU HAVE SEEN IN

YOUR OPINION RISE TO THAT MUTUAL DEFENSE THRESHOLD?

>> LUCKILY, I AM THE E.U. AMBASSADOR AND NOT NATO.

I HAVE TO SAY, THERE ARE SPECIAL PARTICLES, HOW NATO

COUNTRIES ACTUALLY DEAL WITH THAT, WE HAVE WITHIN THE E.U.,

WE INVESTED QUITE A LOT IN OUR PART, PROTECTING OUR MEMBER

STATES, ESPECIALLY ON CYBER.

WE HAVE A RAPID-RESPONSE TEAM AMONG THE E.U. COUNTRIES.

AND DEFINITELY, WE HAVE -- THE

WORLD IS NOT -- WE HAVE TO THINK ABOUT OTHER MEASURES.

-- ESPECIALLY, WHEN WE ARE THINKING ABOUT RIGHT NOW.

WE ARE APPROACHING THE 20TH ANNIVERSARY OF 9/11.

AND I THINK, YOU KNOW, THIS WAS

THE ONLY ONE EXAMPLE WHERE -- WAS USED.

AND OUR AMERICAN PARTNERS INVOKED ARTICLE FIVE.

I THINK ON THAT DAY, WE ALL FELT WE ARE NEW YORKERS.

AND I THINK THAT SHOWS HOW DEEP THIS ALLIANCE IS AND HOW MUCH

WE CAN DO TOGETHER.

AND THEN WE SPENT SEVERAL YEARS TOGETHER FIGHTING TERRORISM.

WE ACHIEVED QUITE A LOT. THIS IS WHAT ACTUALLY MATTERS.

AND THIS IS WHAT RUSSIA FEARS MOST. JEFF:

DO YOU FEEL CONFIDENT, DOES EUROPE FEEL CONFIDENT THAT

PRESIDENT TRUMP WOULD RESPECT ARTICLE FIVE IF THERE WERE AN

INCURSION TO EUROPEAN TERRITORY BY RUSSIA?

>> IT'S THERE. WE HAVE TO MAKE SURE THAT WE

OWN ALL OUR SIZE, BOTH SIDES OF

THE ATLANTIC, WE IMPLEMENT OUR COMMITMENTS, BE IT OUR

PREPAREDNESS, BE IT OUR PREPAREDNESS TO ATTACK HYBRID

THREATS. WE HAVE TO DO THE UTMOST TO

MAKE SURE OUR ENEMIES DON'T SLEEP WELL. JEFF:

LET ME ASK YOU SOMETHING ELSE ABOUT COOPERATION BETWEEN THE

TWO PARTNERS.

YOU SOUGHT SECRETARY BEST SINCE ANNOUNCEMENT ABOUT AN --

SECRETARY BESS

ENTS STATEMENT ABOUT --

>> AS WELL, WE HAVE AN ELEMENT OF THE SANCTIONS WHERE WE HAVE

A POSSIBILITY TO GO AFTER THOSE WHO ARE VIOLATING THE FREEDOM

OF LITIGATION. AND IN GENERAL, WE HAVE A HUGE

PACKAGE OF SANCTIONS, WHICH HAS ALREADY BEEN IMPLEMENT IT, NOT

ONLY AGAINST THE REVOLUTIONARY GOLF BUT -- GUARD.

I THINK THAT THERE'S A LOT OF POSSIBILITIES

OFFERED BETWEEN THE E.U. AND THE U.S. CHRISTINA:

SORRY, I DIDN'T MEAN TO CUT YOU OFF. I WANTED TO ASK YOU ABOUT

SOMETHING COMPLETELY DIFFERENT. AND THAT'S THE DUTCH CENTRAL

BANKS, THEY SAY THEY ARE MOVING GOLD BARS OUT OF THE U.S.

AND CANADA AND CLOSE TO HOME. THIS COMES AFTER SIMILAR MOVES,

THE FRENCH HAVE REMOVED GOLD FROM THE U.S..

GERMANY IS ALSO LOOKING AT REMOVING 216 TONS OF METAL FROM

STORAGE LOCATIONS ABROAD. WHY IS THIS HAPPENING?

AND ARE E.U. COUNTRIES CONCERNED ABOUT THE

FINANCIAL STABILITY OF THE UNITED STATES?

>> FIRST OF ALL, IT IS ALL THE DECISIONS OF OUR MEMBER STATES.

I WILL LEAVE THE FINANCE MINISTERS TO COMMENT. CHRISTINA:

I HAD TO TRY. IT'S AN INTERESTING STORY.

WE'VE BEEN WRITING ABOUT IT ON BLOOMBERG. JEFF:

THANK YOU SO MUCH. WE APPRECIATE YOUR TIME TODAY.

CHRISTINA: IT'S ALWAYS AN IMPORTANT

DISTINCTION. NATO IS NOT THE E.U.

BUT THERE IS SO MUCH OVERLAP BETWEEN THOSE COUNTRIES.

IT IS SOMETHING EUROPEAN UNION MEMBERS ARE THINKING ABOUT EVEN

AS THEY TRY TO STAFF UP THEIR OWN DEFENSE.

-- STEP UP THEIR OWN DEFENSE. YOU HAVE NATO MEMBERS TRYING TO

STEP UP THEIR DEFENSE AND YOU HAVE AN E.U. INITIATIVE. JEFF:

PRESIDENT TRUMP HAS PUT A LOT OF PRESSURE TO SPEND MONEY ON

DEFENSE AND IT'S WORKING. CHRISTINA:

THE PENTAGON HAS ORDERED POLYGRAPHS.

FORMER DEFENSE SECRETARY MARK ESPER JOINS US NEXT ON

"BLOOMBERG THIS WEEKEND." ♪

LISA: THANK YOU FOR JOINING US. I AM LISA MATEO.

LET'S UPDATE YOU ON TODAY'S TOP STORIES.

PRESIDENT DONALD TRUMP IS TRYING TO APPEAL TO RANCHERS

ANCHORED BY THE WHITE HOUSE'S PLAN TO BOOST FOREIGN IMPORTS.

>> WE ARE GOING TO GIVE FARMERS AND RANCHERS THE RIGHT TO

PROCESS THEIR OWN FOOD. WE ARE CREATING A PROGRAM WHERE

A SMALL, MEDIUM SIZED AND LARGE RANCHERS CAN SELL THEIR

PRODUCTS DIRECTLY TO CONSUMERS SO THEY DON'T HAVE TO GO

THROUGH THE BIG FOUR PROCESSES. LISA:

THE PRESIDENT MOVED TO REQUIRE LABELING ON FOREIGN BEEF.

THE ADMINISTRATION HAS FOR MONTHS BEEN TRYING TO LOWER

BEEF PRICES WHICH REMAIN STUBBORNLY HIGH AHEAD OF THE

MIDTERM ELECTIONS AMID A SEVERE U.S. CAPITAL SHORTAGE.

A SETBACK FOR THE TRUMP ADMINISTRATION WHEN IT COMES TO

HOW MAIL-IN BALLOTS ARE HANDLED FOR THE CURRENT ELECTION CYCLE.

THE FEDERAL JUDGE HAS BLOCKED ENFORCEMENTS ON MAIL-IN VOTING

THROUGH THE NOVEMBER MIDTERM ELECTIONS.

IT COMES AS NORTH CAROLINA BEGAN SENDING BALLOTS ON FRIDAY

AND A U.S. JUDGE WAS URGING THE SUPREME

COURT TO INTERVENE. OFFICIALS IN NEPAL SAY RESCUERS

HAVE SAVED A CHINESE NATIONAL AND A WOMAN FOUND ALIVE AFTER

10 DAYS SINCE DEVASTATING FLOODS IN THE COUNTRY.

900 WORKERS ARE MISSING FROM 12 HYDROPOWER PROJECTS ACROSS

NEPAL WITH ROUGHLY 500 BELIEVED TO BE TRAPPED IN VARIOUS

TUNNELS. CHRISTINA: SUCH A HARROWING STORY.

THERE IS A GUY WHO WORKS IN A SHOP AND I SAID AREN'T YOU IN

NEPAL AND HE SAID YES AND I ASKED IF HIS FAMILY WAS OK AND

THEY ARE. ALMOST EVERYBODY KNOWS SOMEBODY

WHO HAS BEEN IMPACTED. JEFF: IT'S REALLY SAD. CHRISTINA:

THE NEW YORK TIMES IS REPORTING ON THE INCREASED CONCERN AT THE

PANIC AND OVER THE SHORTAGE OF CRITICAL DEFENSE WEAPONS. JEFF:

50 MEMBERS OF THE JOINT STAFF UNDERWENT POLYGRAPH TESTS.

THE NEW YORK TIMES CALLED THE SCOPE OF THE INVESTIGATION

WITHOUT PARALLEL. JOINING US NOW IS MARK ESPER,

WHO SERVED AS SECRETARY OF DEFENSE DURING DONALD TRUMP'S

FIRST TERM. WHAT DO YOU MAKE OF THIS

REPORTING ABOUT THE POLYGRAPH TESTS?

IS THIS ABOUT TRYING TO PROTECT CLASSIFIED INFORMATION?

OR IS IT ABOUT INTIMIDATION?

>> GOOD MORNING, FIRST OF ALL. I READ THE REPORT THIS MORNING

ALSO. I'VE NEVER SEEN ANYTHING THAT

LARGE. IT SEEMS UNPRECEDENTED WITH

REGARD TO ITS SCALE. NO ADMINISTRATION LIKES LEAKS.

THIS ONE IN PARTICULAR, THERE HAS BEEN A LOT OF CONCERN ABOUT

THE RELEASE OF CLASSIFIED INFORMATION OR ALLEGEDLY

CLASSIFIED INFORMATION. MUNITION STOCKPILING ISSUES

HAVE BEEN OUT THERE FOR SOME TIME.

THEY HAVE BEEN REPORTED ON BY THINK TANKS, JOURNALISTS,

FORMER PENTAGON OFFICIALS, THAT PART OF IT IS NOT NEW NEWS.

WE WILL SEE WHERE THIS EVENTUALLY GOES AND WHAT

HAPPENS WHENEVER THEY REPORT WHAT THEY FIND. CHRISTINA:

IT SEEMS TO ME A LOT OF THE PLACES THESE LEAKS COULD OR

WOULD BE COMING FROM OUR PLACES WHERE THESE CONCERNS HAVE BEEN

RAISED INTERNALLY AND FOLKS FEEL LIKE THEY HAVE NOT BEEN

ADDRESSED WHICH IS OFTEN WHY WE AS REPORTERS GET PHONE CALLS,

BECAUSE PEOPLE WHO REALLY DO CARE ABOUT THE DVD ARE WORRIED

AND THEY THINK THEY ARE NOT BEING LISTENED TO.

DO YOU THINK THAT IS A FACTOR IN THE NUMBER OF LEAKS YOU ARE

SEEING?

>> THAT'S PROBABLY A FACTOR. IN SOME CASES, IT'S NOT LEAKS.

YOU CAN GO INTO THE ANNUAL CONGRESSIONAL JUSTIFICATION

BOOKS WITH REGARD TO APPROPRIATIONS AND SEE WHAT'S

DELIVERED. YOU CAN COUNT HOW MANY TOMAHAWK

MISSILES FOR EXAMPLE ARE PROVIDED IN A SINGLE YEAR.

YOU HAVE REPORTING BY THE COMPANIES THEMSELVES.

ON TOP OF THAT, YOU HAVE DOD DURING THE IRAN CONFLICT,

OCCASIONALLY CAME OUT AND DID A PRESS BRIEFING AND THEY SAID

THEY SPENT ON 800 OR SO TOMAHAWKS.

YOU CAN SEE THERE IS A SHORTAGE WE EXPENDED ON MUNITIONS.

THIS MAP IS AVAILABLE. THERE'S A COMBINATION -- THIS

MATH IS AVAILABLE. THERE IS A COMBINATION OF

THINGS. MAMUCH MORE WILL COME OUT IN

THE DAYS AND WEEKS. CHRISTINA: OTHER ALLIES HAVE SAID THEY

CAN'T GET THEM BECAUSE THE U.S. IS IN SHORT SUPPLY.

THERE ARE MANY DIFFERENT PLACES IT'S COMING FROM. JEFF:

I'D LIKE TO ASK YOU YOUR THOUGHTS ABOUT WHAT SEEMS LIKE

AN INCREASING BRAIN DRAIN AT THE PENTAGON AND THE

RELATIONSHIP BETWEEN MILITARY OFFICIALS WITH SECRETARY

HEGSETH. THE NEW ARMY SECRETARY COMING

IN, HOW DO YOU INTERPRET THAT?

>> THERE HAS BEEN A LOT OF TURNOVER, OBVIOUSLY.

MOST OF IT NOT EXPLAIN. WHAT'S HAPPENING WITH THE ARMY

IN PARTICULAR, SEEING AS I SERVED AS THE ARMY SECRETARY

FOR TWO YEARS, IS PARTICULARLY TROUBLING.

THE FORMER SECRETARY OF THE ARMY HAD BUILT A GOOD

RELATIONSHIP. THEY WERE DOING GOOD THINGS IN

THE ARMY WITH REGARD TO DRONE AND COUNTER DRUM. BOTH ARE GONE.

THERE IS AN ACTING NAME. INTERESTINGLY, THEY SKIPPED

OVER THE OTHER SECRETARY OF THE ARMY.

I ASSUME HE WILL LEAVE AT SOME POINT.

THERE ARE NAMES FLOATING AROUND WITH REGARD TO WHO WILL BE THE

PERMANENT. PAUSE THERE FOR A SECOND.

NEWS COMING OUT THIS MORNING IS THE WHITE HOUSE MIGHT BE

CONSIDERING REPLACEMENTS FOR DEPUTY SECRETARY DEFENSE STEVE

FEINBERG, WHO HAS BEEN DOING A GOOD JOB FOR ALL INTENTS AND

PURPOSES. THIS IS ANOTHER THING OUT THERE

THAT IS HAPPENING. WHAT YOU HAVE IS A SHORT

CONGRESSIONAL SESSION NOW. IT'S HIGHLY UNLIKELY ANYBODY

COULD GO THROUGH THE PROCESS AND GET CONFIRMED IN THE NEXT

THREE MONTHS. THE QUESTION WILL BE WHAT DOES

THE SENATE LOOK LIKE NEXT YEAR FOR NOMINEES COMING OUT OF THE

PENTAGON AND COMING FROM ANY DEPARTMENT OF THE

ADMINISTRATION. CAN THEY BE CONFIRMED?

JEFF: DRISCOLL HAS A CLOSE RELATIONSHIP WITH VICE

PRESIDENT VANCE. I'D BE CURIOUS TO GET YOUR TAKE

ABOUT WHAT THIS MEANS FOR PETE HEGSETH.

PRESIDENT TRUMP HAS BEEN A BIG SUPPORTER.

WILL HE HAVE TENSIONS WITH THE VICE PRESIDENT OVER THIS?

>> THE VICE PRESIDENT WAS OUT THE OTHER DAY, SINGING THE

DEFENSE SECRETARY'S PRAISES. CLEARLY PRESIDENT TRUMP LIKES

HIM, LIKES THE JOB HE'S DOING. THAT'S ALL THAT COUNTS AT THE

DAY. IN THESE SITUATIONS THAT THE

PRESIDENT IS HAPPY. HE'S THE PRESIDENT'S CHOICE.

YOU SEE PEOPLE WEIGHING IN, YOU HAVE OUTSIDE CRITICS AND

REPUBLICANS ON CAPITOL HILL ALSO CITING THEIR CONCERNS.

WE JUST HAVE TO WAIT AND SEE WHAT HAPPENS, PARTICULARLY

AFTER THE MIDTERMS AND AS CONGRESS CHANGES TAKE SHAPE IN

JANUARY OF NEXT YEAR. CHRISTINA: PEOPLE I SPEAK TO ARE WORRIED

THAT THE PENTAGON IS LOSING A GENERATION OF LEADERS WHO GROW

UP AT A DOD WITH THE SEE PHOTOS AND PARTIALITY, SPEAKING TRUTH

TO POWER. AND THE PEOPLE WHO HAVE BEEN

PUSHED OUT ARE THOSE WHO SEEM TO TRY TO GET THOSE MESSAGES

ACROSS. ARE YOU WORRIED ABOUT THE

COMBAT READINESS AND THE EFFECTIVENESS OF MILITARY