DAVID: COMING UP ON "BLOOMBERG THIS

WEEKEND," PRESIDENT TRUMP BACK AT THE

WHITE HOUSE AFTER HIS TRIP TO CHINA.

>> WE MADE GREAT DEALS, GREAT TRADE DEALS, GREAT

RELATIONSHIPS, AND A LOT OF THINGS HAVE HAPPENED THAT YOU

WILL BE HEARING ABOUT. DAVID: WHAT HE IS SAYING ABOUT TAIWAN,

CHIP MANUFACTURING, AND AI. CHRISTINA:

POLLS OPEN FOR PRIMARY VOTERS IN LOUISIANA.

A TRUMP-BACKED MAGA REPUBLICAN IS CHALLENGING THE CHAIR OF THE

-- DAVID: BREAKING OVERNIGHT, WORKERS FOR

THE LONG ISLAND RAILROAD ON STRIKE.

>> MAKE A DEAL THAT INCLUDES THE MTA BUDGET. DAVID:

WHAT WORKERS ARE DEMANDING AND HOW THE MTA IS RESPONDING AS

TRAINS STOP RUNNING ON COUNTRIES BIGGEST COMMUTER RAIL

RUN. CHRISTINA: WELCOME TO "BLOOMBERG THIS

WEEKEND." WE ARE COMING TO YOU LIVE FROM

BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. DAVID:

IT IS SATURDAY, MAY 16. HEARTY WELCOME TO ALL OUR

LISTENERS AND VIEWERS ON ALL OUR PLATFORMS, AND SOME NEWS

BREAKING ABOUT NOT THE TRUMP-XI SOME ABOUT THE NEXT SUMMIT.

CHRISTINA: PRESIDENT PUTIN SAYS HE IS

HEADING TO BEIJING ON THE HEELS OF THE BIG U.S.-SINO SUMMIT.

DAVID: SCHEDULE TO TAKE PLACE MAY 19

AND 20. THE WAY THE KREMLIN IS

DESCRIBING IT IS IT WILL COINCIDE WITH THE ANNIVERSARY

OF THE TREATY OF GOOD NEIGHBORLINESS AND COOPERATION.

CHRISTINA:

I JUST PICTURE THE OLD USSR, CCP ARTWORK WITH THE CHINESE

WORK AND THE RUSSIAN WORKER. DAVID:

A SENSE OF SOVIETISM THERE. LET'S GET TOGETHER HEADLINES

WITH LISA MATEO. LISA:

SERVICE ON THE NATION'S LARGEST COMMUTER RAIL CAME TO A

HALT. WORKERS OF THE LONG ISLAND RAIL

ROAD WENT ON STRIKE.

>> AS OF 12:01 A.M., WE ARE STRIKING THE LONG ISLAND

RAILROAD. AFTER TWO DAYS OF

AROUND-THE-CLOCK NEGOTIATIONS, THE PARTIES INVOLVED WERE

UNABLE TO REACH A DEAL.

LISA: THE MTA CHAIRMAN AND CEO SAYS

IT IS NOT THE RESULT THEY WERE LOOKING FOR.

>> LIKE GOVERNOR HOCHUL SAID, EVERYBODY WANTS TO AVOID A

STRIKE. THE MTA, THE STRIKING WORKERS

THEIR WAGES, AND MOST OF ALL THE PEOPLE WHO RELY ON THE ROAD

EVERY DAY. I AND MY MTA BOARD HAVE BEEN

CLEAR WE CANNOT INCLUDE A DEAL INCLUDES THE MTA BUDGET.

THE TWO -- LISA:

MORE THAN 270,000 RIDERS RELY ON THE RAILROAD.

THIS IS THE FIRST STRIKE SINCE 1994.

PRESIDENT TRUMP BACK AT THE WHITE HOUSE AFTER RETURNING

FROM A THREE DAY TRIP IN CHINA TO MEET WITH PRESIDENT XI

JINPING. ABOARD AIR FORCE ONE, HE TOLD

REPORTERS HE AND XI TALKED A LOT ABOUT TAIWAN.

>> WE TALKED ABOUT TAIWAN. I THINK WE HAVE A VERY GOOD

UNDERSTANDING.

ON TAIWAN, HE DOES NOT WANT TO SEE A FIGHT FOR INDEPENDENCE,

BECAUSE THAT WOULD BE A VERY STRONG CONFRONTATION. LISA:

PRESIDENT TRUMP SAYS HE HAS NOT YET MADE A DECISION ON WHETHER

A MAJOR SALE OF U.S. ARMS TO TAIWAN COULD MOVE

FORWARD. TRUMP'S REPUBLICAN ADMINISTRATION AUTHORIZED THE

SALE.

THE PRESIDENT ALSO SAID HE WEIGHED A POTENTIAL THREE-WAY

NUCLEAR DEAL INVOLVING THE U.S., CHINA, AND RUSSIA.

IN OTHER NEWS, PRESIDENT TRUMP ANNOUNCING LATE LAST NIGHT ON

SOCIAL MEDIA THAT U.S. AND NIGERIAN MILITARY FORCES

KILLED THE ISLAMIC STATE'S SECOND IN COMMAND GLOBALLY IN A

METICULOUSLY PLANNED AND COMPLEX MISSION.

THE PRESIDENT CALLED HIM THE MOST ACTIVE TERRORIST IN THE

WORLD. BIG DAY IN GOLF AS THE PGA JP

SHIP CONTINUES IN PENNSYLVANIA.

-- MAVERICK MCNEALY AND ALEX SMALLEY TIED AT FOUR UNDERPAR.

CATCH PLAY-BY-PLAY COVERAGE. DAVID:

TO MAKE A CLEAR, YOU'RE NOT DOING THE PLAY-BY-PLAY.

[LAUGHTER] CHRISTINA:

TRY TO SAY THE NAME OF THAT GOLF CLUB.

WE APPRECIATE THE EFFORT. PRESIDENT TRUMP WAKING UP IN

WASHINGTON FOLLOWING THAT SUMMIT WITH CHINESE LEADERS XI

JINPING. HE TALKED TO FOX NEWS ABOUT THE

TRIP, CALLING TAIWAN THE MOST IMPORTANT ISSUE.

>> SHOULD THE PEOPLE OF TAIWAN FEEL MORE OR LESS SECURE AFTER

YOUR MEETINGS WITH PRESIDENT XI? >> NEUTRAL. NEUTRAL.

>> HAS A POLICY CHANGED AT ALL?

>> NO, NOTHING'S CHANGED. I AM NOT LOOKING TO HAVE

SOMEBODY GO INDEPENDENT. WE ARE SUPPOSED TO TRAVEL 9500

MILES TO FIGHT A WAR, I AM NOT LOOKING FOR THAT.

I WANT THEM TO COOL DOWN. I WANT CHINA TO COOL DOWN.

>> WHAT YOU ARE WAITING ON APPROVING BILLIONS OF DOLLARS A

WEAPONS FOR TAIWAN. IS THAT MOVING FORWARD?

>> I HAVE NOT APPROVED IT YET. WE WILL SEE WHAT HAPPENS.

I MAY DO IT, I MAY NOT DO IT?

>> WHAT IS YOUR HINGE POINT.

>> I WILL NOT SAY THAT, BUT I MAY DO IT, I MAY NOT DO IT.

BUT WE ARE NOT LOOKING TO HAVE WARS.

I THINK IF YOU KEPT IT THE WAY IT IS, I THINK CHINA IS GOING

TO BE OK WITH IT.

SOMEBODY SAID LET'S GO INDEPENDENT BECAUSE THE UNITED

STATES IS BACKING US. DAVID: PRESIDENT TRUMP DATE INVITE

PRESIDENT XI TO WASHINGTON. JOINING US IS STEPHEN ENGLE IN

BEIJING AND BLOOMBERG WHITE HOUSE CORRESPONDENT COURTNEY

SUBRAMANIAN. STEPHEN, LET ME START WITH YOU.

THE CONVERSATION WITH FOX NEWS. THE REMARKS THAT PRESIDENT XI

MADE ABOUT TAIWAN AND RESONATED OVER THE COURSE OF THE TWO AND

HALF DAYS IN BEIJING. TALK ABOUT HOW BOTH SIDES ARE

SHAPING THE MESSAGE AS PRESIDENT TRUMP MAKES HIS WAY

BACK TO WASHINGTON AND WE BEGIN TO PROCESS WHAT TOOK PLACE OVER

THE SUMMIT. STEPHEN: I THINK IT IS REMARKABLE THAT

THE TWO PRESIDENTS DID TALK AT LENGTH, AT LEAST ACCORDING TO

DONALD TRUMP. THEY TALKED AT LENGTH ABOUT

TAIWAN. KEEP IN MIND, COMING INTO THIS

SUMMIT, AS WE DID A LOT OF PREVIEWS, TALKED TO A LOT OF

PEOPLE IN BEIJING ABOUT WHAT DO WE THINK THE CHINESE SIDE WHO

REALLY WANT, WHAT IS THEIR DELIVERABLE?

WE DEBATED ABOUT WHAT COULD BE THE U.S.

DELIVERABLE, ESPECIALLY WITH THE HUGE 17 TO 18 EXECUTIVE

ENTOURAGE THAT CAME WITH DONALD TRUMP, INCLUDING JENSEN HUANG,

ELON MUSK, TIM COOK, AND OTHERS. ON THE GEOPOLITICAL FRONT, WHAT

DID CHINA WANT? IT BOILED DOWN TO THE THREE T'S.

TRADE, INCLUDING TARIFFS, TECH, INCLUDING ACCELERATORS FROM

NVIDIA, AND TAIWAN. THE U.S. COURTS TOOK CARE OF A LOT OF

THE HOT BUTTON ISSUES ON THE TARIFF SIDE.

TECH WAS NOT REALLY DISCUSSED ACCORDING TO JAMIESON GREER IN

AN EXCLUSIVE INTERVIEW WE HAD IN THIS ROOM YESTERDAY.

HE SAID IT WAS NOT DISCUSSED DURING THE TALK IN THE GREAT

HALL OF THE PEOPLE CARE THAT REALLY LEFT TAIWAN.

CLEARLY, XI JINPING ISSUING HIS MOST BLUNT WARNING, IF YOU

WILL, TO A U.S. PRESIDENT ABOUT TAIWAN, THAT IF

IT IS NOT HANDLED WELL, IT COULD LEAD TO A DANGEROUS

SITUATION AND THAT IS CLEARLY SOMETHING THAT CHINESE SIDE

WANTED TO GET ACROSS FROM THE GET GO.

EVEN BEFORE THE TO ARE NOT OUR BILATERAL FIRST MEETING BETWEEN

THE TWO GENTLEMEN IN THE GREAT HALL OF THE PEOPLE, CHINESE

STATE MEDIA PUT OUT XI JINPING'S STATEMENTS, NOT

GIVING THE U.S. SIDE THE OPPORTUNITY TO GIVE

ANY KIND OF REACTION TO THAT. ALSO, WHEN DONALD TRUMP WAS

FINALLY ASKED ABOUT IT, HE STAYED UNCHARACTERISTICALLY

QUIET ON THE SUBJECT. THERE WAS A LOT DISCUSSED,

THOUGH. CHRISTINA: I THOUGHT THAT WAS INTERESTING,

THAT THE CHINESE PUT OUT THAT STATEMENT STATING THEY HAD PUT

OUT THEIR STANCE ON TAIWAN BEFORE THE MEETING EVEN ENDED.

AND THE U.S. DID NOT REALLY PUSH BACK.

WE DID NOT SEE A COMPETING STATEMENT COME OUT RIGHT AWAY

FROM THE WHITE HOUSE. WE ALSO COME IN THESE

INTERVIEWS, PRESIDENT TRUMP SEEMS TO HAVE RECEIVED THE

CHINESE MESSAGE. IS IT CLEAR THAT CHINA RECEIVED

SOMETHING SIMILAR FROM THE U.S., AND WHAT WAS AMERICA'S

MESSAGE? IT SEEMS THE RESPONSE WOULD

NORMALLY BE TO ISSUE APPROVAL TO THE ARMS

PACKAGE TAIWAN HAS BEEN WAITING FOR THE PRESIDENT'S SIGNATURE

ON CARE THAT HAS NOT HAPPENED. THE PRESIDENT IS KIND OF

HOLDING AS A BARGAINING CHIP. WHY NOT SIGN THE DEAL AND KEEP

IT AS A STATUS QUO IF THAT IS WHAT THE PRESIDENT SAYS HE

WANTS? COURTNEY: THAT IS A GOOD POINT. THE U.S.

HAS BEEN INSISTENT THAT THE STATUS QUO REMAINS IN PLACE,

NOTHING HAS CHANGED IN POLICY. BY THE PRESIDENT'S COMMENTS --

BUT THE PRESIDENT'S COMMENTS WERE REMARKABLE.

HE CALLED IT A CHIP TO BE LEVERAGED.

I THINK THAT SIGNALED HE MAY HOLD OFF ON APPROVING THAT DEAL

UNTIL XI'S VISIT IN SEPTEMBER, WHICH IN ITSELF WOULD BE A WIN

FOR BEIJING. THIS IS SOMETHING THAT ALLOWS

THEM TO BUY MORE TIME AND KEEP THE U.S. AT BAY.

AGAIN, I THINK THAT IS A WIN FOR CHINA. DAVID:

I WANT TO GO BACK TO WHAT WE ARE WAITING FOR HERE, SHAPING

THE MESSAGE OF WHAT UNFOLDED UP THE SUMMIT BUT ALSO FOR ANY

DEALS THAT CAME OUT OF THIS. GET US UP TO SPEED ON WHAT WE

MAY EXPECT. THERE WERE EXPECTATIONS, THERE

MAY BE ANNOUNCEMENTS ON TARIFFS AND TRADE.

WE SAW THE PLANE FULL OF EXECUTIVES, MAYBE THAT WILL

LEAD TO ANNOUNCEMENTS ON TECH DEALS.

THERE WERE WHISPERS ABOUT HOW BIG THE BOEING PURCHASE PLAN

MATE -- THERE WERE WHISPERS ABOUT HOW BIG THE BOEING

PURCHASE PLAN MIGHT BE. STEPHEN: THE WHOLE AI INFRASTRUCTURE AND

BUILDOUT STORE IS A GLOBAL STORY. WHEN JENSEN HUANG GOES TO

ALASKA AND JUMPS ABOARD AIR FORCE ONE TO COME TO BEIJING AT

THE LAST MINUTE AFTER ESSENTIALLY SAYING HE WAS NOT

GOING ON THIS TRIP, BUT I GIVE A LOT OF INDICATION PERHAPS

THERE WAS SOMETHING BREWING ON THE H200 OR THE H20, EVEN, THE

WATER DOWN ACCELERATOR THAT HAS ALREADY BEEN APPROVED FOR SALE

TO CHINA. BUT IT IS CHINA, ESPECIALLY ON

THE H200, THAT HAS COME OUT AND SAID WE DO NOT WANT OUR

COMPANIES BUYING IT NOW. OF COURSE, CHINA IS FOCUSED ON

INDIGENOUS INNOVATION, BUILDING THEIR OWN CHIPS AND THEIR OWN

TECHNOLOGIES FOR THEIR LARGE LANGUAGE MODELS.

BUT CLEARLY THE LLM'S HERE IN CHINA WOULD LOVE TO HAVE THE

H200 OR THOSE CHIPS FROM NVIDIA. BUT AGAIN, NOTHING HAS BEEN

ANNOUNCED. MAYBE THAT IS SOMETHING THAT

WILL COME DOWN THE PIKE LATER ON.

WE THOUGHT MAY BE, BECAUSE ELON MUSK CAME ON THE TRIP, HE HAS

BEEN PUSHING FOR SELF DRIVING TECHNOLOGY IN CHINA.

IT HAS NOT GOTTEN OVER THE REGULATORY HURDLE.

HE WANTS ROBOTAXIS IN CHINA. THAT IS NOT SOMETHING THAT CAME.

WHERE WE HAD DELIVERABLES ON THE DARKER CULTURAL -- LIKE

WHERE WE HAD DELIVERABLES, ON THE AGRICULTURAL FRONT.

SO THE SOYBEAN COMMITMENTS, THERE IS BEEF THAT WILL BE BACK

ON CHINESE TABLES AFTER A 14 MONTH PAUSE BECAUSE OF THE

TARIFF BROUGHT FROM WASHINGTON, AND MAYBE CORN AS WELL.

WE ARE WAITING ON A FEW MORE THINGS.

THE BOEING JET ORDER, ACCORDING TO BOEING AND PRESIDENT TRUMP,

WAS ABOUT 200 PLANES. THE MARKET WAS ABOUT 500, SO IT

SORT OF FELL SHORT. CHRISTINA: THE MARKET VERY UNIMPRESSED

WITH THAT. WE WILL TALK ABOUT THAT MORE

LATER. I WANT TO TALK ABOUT IRAN.

OUR WHITE HOUSE TEAM HAS A STORY SAYING THAT THE CHINESE

FOREIGN MINISTER CAME OUT WITH A STATEMENT THAT IS A LITTLE

STRONGER THAN WE HAVE SEEN FROM THE IRANIANS SO FAR, SAYING THE

STRAIT SHOULD BE OPEN TO SHIPPING AS SOON AS POSSIBLE.

THAT IS SOMETHING A LOT OF PEOPLE IN THE WORLD ARE

COMFORTABLE STAYING -- SAYING. IT IS NOT TAKING A STANCE, IT

IS SAYING IT SHOULD BE OPEN. WHAT DOES PRESIDENT TRUMP WANT

FROM CHINA? I HAVE A BIT OF SOUND WE WILL

PLAY AND THEN I WANT YOU TO TALK ABOUT IT.

>> EVERY TIME THEY MAKE A DEAL, THE NEXT DAY, IT'S LIKE WE

DIDN'T HAVE THAT CONVERSATION. THE HAS TAKEN PLACE ABOUT FIVE

TIMES. THERE'S SOMETHING WRONG WITH

THEM. ACTUALLY, THEY'RE CRAZY. BECAUSE OF THAT, THEY CANNOT

HAVE A NUCLEAR WEAPON -- >> THE PRESIDENT OF CHINA AGREES WITH

YOU ON THAT?

>> HE AGREES WITH ME ON THAT. HE AGREES WITH ME HE WOULD LIKE

TO SEE IT END. BUT WE DON'T NEED HELP.

YOU KNOW THE PROBLEM WITH HELP? WHEN SOMEBODY HELPS YOU, THEY

ALWAYS WANT SOMETHING ON THE OTHER SIDE. CHRISTINA:

THIS IS VERY INTERESTING. THE PRESIDENT HAS BEEN REALLY

HARD ON EUROPEAN ALLIES FOR NOT HELPING IN THE STRAIT.

NOW HE IS SAYING TO CHINA WE DO NOT NEED THEIR HELP.

CHINA PROBABLY DOES NOT WANT A NUCLEAR IRAN, BUT THEY SEEM

RETICENT TO GET INVOLVED. WHAT DID THE WHITE HOUSE WANT,

WHAT COULD TO GET OUT OF CHINA, AND WHY IS CHINA STAYING ON THE

SIDELINES? COURTNEY: THE PRESIDENT, FIRST OF ALL, HE

NEEDS INTERNATIONAL SUPPORT TO HELP REOPEN THE STRAIT.

THAT IS SOMETHING EXPERTS HAVE BEEN CLEAR ABOUT.

HE SAID THAT AGREED -- THAT XI AGREED WITH HIM THAT THE STRAIT

SHOULD BE OPEN. BUT THE TWO MADE LITTLE

PROGRESS ON THAT. HE STOPPED SHORT OF LEANING ON

XI TO ACTUALLY ASK IRAN. BUT HE SEEMED TO THINK THAT XI

WOULD FOLLOW THROUGH ON TRYING TO LEAN ON IRAN.

EVEN WENT AS FAR AS TO SUGGEST THE U.S.

MAY LIFT SANCTIONS AGAINST CHINESE COMPANIES BUYING

IRANIAN OIL AS A MEANS TO TRY TO MOVE THE BALL A BIT ON THIS.

BUT AGAIN, HE WALKED AWAY FROM THIS WITH LITTLE PROGRESS ON

ANY MOVEMENT ON MOVING PEACE FORWARD.

THIS --IRAN LARGELY HUNG OVER THE SUMMIT.

HE SAID THEY TALKED ABOUT IRAN A LOT. THIS WAS SUPPOSED TO BE A

SUMMIT THAT DEALT WITH EASING, STABILIZING ECONOMIC RELATIONS

AND HELPING HIM EASED SOME INFLATIONARY CONCERNS AT HOME.

IT JUST WANT TO SHOW THAT IRAN HAS LARGELY REMAINED A

DISTRACTION, BOTH FOR THE PRESIDENT AND HIS RELATIONSHIP

WITH CHINA ON THE WORLD STAGE, AND I THINK THAT HE DID NOT

REALLY WALK AWAY WITH ANY COMMITMENTS FROM XI ON IRAN.

DAVID: WE WILL HAVE A CONVERSATION IN

A MOMENT ABOUT THIS NUCLEAR ISSUE AND THE RUSSIA-IRAN

RELATIONSHIP, THE CHINA-IRAN RELATIONSHIP.

AS A PRELUDE TO THIS, WE SAW THE CHINESE FOREIGN MINISTER

SITTING DOWN WITH -- HELP US UNDERSTAND WHAT CHINA'S

PERSPECTIVE IS ON THIS CONFLICT. IN REAL TERMS, WHAT IS THE

COMMITMENT THEY ARE PREPARED TO MAKE TO CATALYZE AN END TO THE

CONFLICT? STEPHEN: CHINA HAS LONG ESPOUSED THEIR

POLICY OF NONINTERFERENCE IN OTHER PEOPLE'S AFFAIRS.

I CLEARLY SAW THAT THEY DID NOT WANT ANYTHING TO DO WITH THIS

DIALOGUE DURING THIS SUMMIT. THE SUMMIT WAS ABOUT GETTING

THE RELATIONSHIP AND THE U.S.-CHINA TIES BACK ON TRACK

AFTER WHAT HAS BEEN A BRUTAL YEAR OF TIT FOR TAT

RETALIATION, TARIFFS UP 450%, THE LEVERAGE OF RARE

EARTHS, EXPORT CONTROLS. LOTS OF BAD BLOOD.

XI JINPING DID WANT TO HAVE AREAS WHERE THEY COULD FIND

COMMON GROUND. BUT HE KIND OF JUMPED THE GUN

AS FAR AS GETTING THE NARRATIVE OUT THERE.

THAT IS WHY I THINK THEM PUTTING OUT THOSE HEADLINES ON

TAIWAN REALLY CRAFTED THE NARRATIVE AND IT REALLY WAS

VERY MUTED IN THEIR READOUT. ANYTHING ABOUT IRAN, THEY

BASICALLY MENTIONED THE MIDDLE EAST. EVEN THE FRONT PAGE OF

"THE CHINA DAILY" IS MUTED COMMENTARY.

THEY DID NOT GIVE ANY INDICATION THAT CHINA WOULD

HELP THEM EVEN THOUGH DONALD TRUMP SAYS XI JINPING INDICATED

HIS WILLINGNESS TO HELP WHERE THEY CAN. DAVID:

OUR STEPHEN ENGLE IN BEIJING, COURTNEY SUBRAMANIAN JOINING US

FROM WASHINGTON, ONE OF OUR WHITE HOUSE CORRESPONDENTS.

PRESIDENT XI AND PRESIDENT TRUMP SCHEDULED TO MEET IN

WASHINGTON, OPEC -- CHRISTINA: AND PRESIDENT PUTIN WILL MEET

WITH PRESIDENT XI JINPING. OUR NEXT GUEST FOCUSES HER

RESEARCH ON THE ADVERSARY ILLNESS.

LISA: THANK YOU FOR JOINING US LIVE

ON "BLOOMBERG THIS WEEKEND ." THE SUPREME COURT HAS REJECTED

A BID BY VIRGINIA DEMOCRATS TO REVIVE A VOTER-APPROVED MAP

DESIGNED TO FLIP REPUBLICAN HOUSE SEATS.

THE VIRGINIA SUPREME COURT SAID IT WAS IN VIOLATION OF THE

STATE CONSTITUTION.

IT IS A SETBACK IN HOPES OF DEMOCRATIC REDISTRICTING.

MEANWHILE, THOUSANDS EXPECTED TO GATHER IN ALABAMA IN SUPPORT

FOR VOTING RIGHTS. COLORADO DEMOCRATIC GOVERNOR

JARED POLIS REDUCE THE STATE PRISON SENTENCE OF TINA PETERS,

ALLOWING HER TO BE ELIGIBLE FOR PAROLE JUNE 1.

PETERS IS A FORMER COUNTY CLERK CONVICTED OF TAMPERING WITH

ELECTION EQUIPMENT AND HAD BEEN SERVING A NINE YEAR STATE

PRISON SENTENCE. AND MULTIPLE OUTLETS REPORTING

THE U.S. COULD ANNOUNCE A POSSIBLE

CRIMINAL INDICTMENT OF FORMER CUBAN PRESIDENT RAUL CASTRO.

THE INVESTIGATION CENTERS

AROUND THE 1996 SHOOT OF PLANES OPERATED BY THE HUMANITARIAN

GROUP BROTHERS TO THE RESCUE. IT COMES AS PRESIDENT TRUMP

RAMPS UP PRESSURE ON THE ISLAND WITH THE CIA DIRECTOR VISITING

CUBA FOR TALKS WITH TOP LEADERS. CUBA SAYS THE COUNTRY HAS

COMPLETELY RUN OUT OF DIESEL AND FUEL OIL IT NEEDS THE POWER

POWER PLANTS. IT IS PUSHING MUCH OF THE

ISLAND INTO DARKNESS AND SPARKING SOME PROTESTS AS WELL.

DAVID: PRETTY EXTRAORDINARY MEETING

THURSDAY OF THE CIA DIRECTOR AND THE SHOTS OF THE PLANE

GETTING -- CHRISTINA: AND I WAS READING THAT HAVANA

WAS GETTING TWO HOURS OF POWER EVERY DAY. DAVID:

IN AN INCREASINGLY INTERCONNECTED WORLD, NO

CONFLICT, ESPECIALLY THE WAR IN IRAN,.

HAPPENS IN A VACUUM CHRISTINA: IT HAS BROUGHT COMPLICATIONS TO

TEHRAN'S DIPLOMATIC RELATIONS. JOINING US NOWIS NICOLE

GRAJEWSKI, ASSISTANT PROFESSOR

AT THE -- HER BOOK DIGS INTO THAT RELATIONSHIP.

THANK YOU FOR JOINING US. I WANT TO START WITH A NEWS WE

HAVE GONE TODAY. PUTIN ANNOUNCED HE IS HEADING

TO CHINA TO MEET WITH XI. TALK ABOUT THE TIMING, AND ARE

THESE THREE LEADERS INCREASINGLY SEEING THEMSELVES

AS ON EQUAL FOOTING ON THE STAGE? NICOLE:

THANK YOU SO MUCH FOR HAVING ME. PUTIN'S ANNOUNCEMENT OF THIS

TRIP TO CHINA IS NOT NECESSARILY SURPRISING.

YOU HAVE SEEN THE RUSSIANS TALKING WITH A CHINESE YUAN

EITHER COUNTRY DEALS WITH THE UNITED STATES.

AND GIVEN THE RELATIONSHIP WHERE THERE ARE DIFFERENT GOALS

BUT ARE STILL COORDINATED, IT SEEMS LIKE IT IS APT FOR THIS

KIND OF SITUATION FOR PUTIN TO CONSULT WITH THE CHINESE. DAVID:

WE JUST HAD THIS CONVERSATION ABOUT THE WAY CHINA SEES WHAT

IS HAPPENING IN THE MIDDLE EAST, THE DEGREE TO WHICH THEY

WANT TO GET INVOLVED OR NOT, AS THE CASE IS.

WHAT IS RUSSIA'S VANTAGE? WHAT IS ITS ROLE IN FUELING THE

CRISIS WE SEE IN IRAN? NICOLE: RUSSIA'S INVOLVEMENT WAS MUCH

MORE SUBSTANTIAL THAN OTHER ESCALATIONS BETWEEN IRAN AND

ISRAEL OR BETWEEN THE UNITED STATES.

RUSSIA PROVIDED IRAN WITH TARGETING INFORMATION THAT

ALLOWED IRAN TO TARGET U.S. TROOPS AND BASES ON GULF

TERRITORY. AND RUSSIA HAS PLAYED THIS

INTERESTING DIPLOMATIC GAME. IT IS PLAYING OUT NOW AND THE

UN SECURITY COUNCIL, WHERE THERE IS AN ONGOING RESOLUTION

ON THE STRAIT OF HORMUZ, BUT RUSSIA HAS BLOCKED THAT COME UP

PARTLY BECAUSE OF ITS CRITICAL NATURE TOWARDS IRAN.

RUSSIA HAS PLAYED A CRUCIAL ROLE FOR THE IRANIANS,

ESPECIALLY AS A BULWARK AS WHAT THEY SEE AS PRESSURE AGAINST

IRAN. CHRISTINA:

I WANT TO TALK ABOUT THE HISTORICAL CONNECTIONS,

ESPECIALLY SYRIA, BUT IS IT CLEAR, GIVEN THE STATE OR

NONSTATE OF IRANIAN LEADERSHIP WHO EXACTLY IN MOSCOW WAS

TALKING TO WHO EXACTLY IN TEHRAN AND WHAT THE LEVEL OF

COORDINATION IS AT THIS POINT, GIVEN THE UNCERTAINTY IN THE

COMMAND-AND-CONTROL APPARATUS IN IRAN NOW? NICOLE:

THE RUSSIANS AND IRANIAN S HAVE DEEP INSTITUTIONAL TIES THAT GO

BEYOND THE LEADERSHIP. PARTLY BECAUSE OF THEIR

INVOLVEMENT IN PAST MILITARY CONFLICTS.

BUT WITHIN THE IRGC, THERE IS SOME CONTINUITY.

YOU SEE THE RUSSIANS DEALING WITH IRAN PARTLY THROUGH THE

EMBASSY WITH RUSSIAN MILITARY INTELLIGENCE AND ALSO THE

ISLAMIC REVOLUTIONARY GUARD CORPS, WHICH TENDS TO FAVOR

TIES WITH RUSSIA.

AND ALSO THE SPEAKER OF PARLIAMENT OF IRAN HAS

HISTORICALLY BEEN A PROPONENT OF RELATIONS WITH RUSSIA,

MAKING SEVERAL VISITS TO MOSCOW ON A REQUEST BASIS.

THE CONNECTIONS BETWEEN THEM HAS NOT REALLY BEEN SEVERED

BECAUSE OF THE COMPLICATIONS IN IRANIAN LEADERSHIP. DAVID:

THE CHINESE ATTITUDE TOWARDS IRAN HAVING A NUCLEAR WEAPON,

WITH BOTH THESE POWERS, CHINA AND RUSSIA, HOW DO THEY VIEW

THAT? ARE THEY AGNOSTIC? ARE THEY ENCOURAGING?

WHAT IS THEIR ATTITUDE TOWARDS IRAN'S DEVELOPMENT OF A NUCLEAR

WEAPON. NICOLE: IT IS CERTAINLY CORRECT CHINA

DOES NOT WANT TO SEE IRAN HAVE A NUCLEAR WEAPON.

TO SOME EXTENT, RUSSIA ALSO FITS INTO THAT PLACE.

BUT IN RECENT YEARS, SINCE THE WAR IN UKRAINE, RUSSIA HAS

COOPERATED WITH IRAN IN AREAS FAR MORE SENSITIVE IN REGARDS

TO WEAPONIZATION RESEARCH GAVE A FINANCIAL TIMES CAME OUT WITH

A STORY ABOUT RUSSIAN RESEARCHERS PROVIDING CRUCIAL

INFORMATION FOR WARHEAD DESIGN AND WORK ON PARTS OF IRAN'S

NUCLEAR PROGRAM THAT COULD BE USED TO MAKE A NUCLEAR WEAPON.

THAT SHIFTED SINCE THE WAR IN UKRAINE.

PARTLY BECAUSE THE RUSSIANS VIEW THIS AS A CHALLENGE TO THE

UNITED STATES. BUT OVERWHELMINGLY, NEITHER

RUSSIA OR CHINA WOULD FIND A NUCLEAR IRAN DESIRABLE, AND

PROBABLY THAT MEANS IT IS BECAUSE IRAN IS LESS

CONTROLLABLE AND PROBABLY LESS PREDICTABLE. CHRISTINA:

WHAT IS THE STRATEGY FOR PROVIDING THEM AID AND SUPPORT

FOR THEIR NUCLEAR PROGRAMMING? OBVIOUSLY RUSSIA AND IRAN HAVE

A HISTORY. RUSSIA HELPED BUILD OR FINISH

THEIR NUCLEAR REACTOR AND PROVIDE NUCLEAR FUEL FOR THAT

FACILITY. BUT WHEN IT COMES TO THE

WEAPONS PROGRAM, WHY WOULD THEY WANT TO SUPPORT THAT IN ANY WAY?

HOW DO THEY BENEFIT FROM IRAN BEING A NUCLEAR POWER, OTHER

THAN BECAUSE IT JUST ANTAGONIZES THE UNITED STATES?

NICOLE: THE RUSSIANS HAVE DONE THIS

COOPERATION AT A LEVEL OF PLAUSIBLE DENIABILITY.

SO IT HAS NOT BEEN SANCTIONED OFFICIALLY BY THE KREMLIN.

IT IS USUALLY PARTS OF THE RUSSIAN SCIENTIFIC AND

TECHNICAL BASE. THIS IS ESSENTIALLY A HEDGING

STRATEGY. IRAN, IF THEY MAKE THAT

DECISION TO OBTAIN A NUCLEAR WEAPON, WILL DO SO WITH OR

WITHOUT RUSSIAN SUPPORT. BUT THIS AT LEAST PROVIDES THE

IRANIANS WITH SOME SORT OF COMFORT THAT THE RUSSIANS ARE

CONTINUING TO BE THEIR PARTNER. AND RUSSIA NEEDS IRAN FOR THEIR

WAR IN UKRAINE AND THEIR BROADER STRATEGY AND THE

ORIENTATION THEY HAVE BEEN GOING ON SINCE 2022. DAVID:

YOU BRING UP MULTI-POLARITY. IT MAKES ME WONDER ABOUT

RUSSIA'S BANDWIDTH BECAUSE WE TALK ABOUT IT IS INPATIENT AND

THE DIFFICULTY IN THIS WAR THAT HAS DRAGGED ON FOR SOME OF THE

YEARS NOW.

HOW DOES THAT -- IT VIEW THAT -- HOW STRAINED IS RUSSIA, HOW

WILLING IS IT TO INVEST TIME,

ENERGY, ANDNICOLE: RUSSIA WAS NEVER GOING TO PROVIDE TRIPS TO

IRAN. THIS WAS SOMETHING IN THEIR

STRATEGIC PARTNERSHIP AGREEMENTS THEY HAVE HAD IN THE

PAST WHERE RUSSIA WOULD NOT PROVIDE TRIPS ON THE GROUND.

TO SOME EXTENT, RUSSIA IS STRAINED IN THAT THERE WERE

ECONOMY IS UNDER PRESSURE BECAUSE OF THE WAR IN UKRAINE.

BUT THIS WAS NEVER GOING TO BE IN THE CARDS IN THE FIRST PLACE.

HOWEVER, WE HAVE SEEN IN THIS WAR IS DESPITE RUSSIA'S

PRE-APPLICATION WITH THE WAR IN UKRAINE, THEY HAVE BEEN ABLE TO

TRANSFER DISCRETE COMPONENTS OR TECHNOLOGY OR INTELLIGENCE TO

THE IRANIANS THAT HAS HELPED THE IRANIANS.

THEY ARE AN ENABLER BUT THEY ARE NOT GOING TO BE THIS

DECISIVE FACTOR TO INTERVENE ON BEHALF OF THE IRANIANS.

THAT BECOMES IMPORTANT, ESPECIALLY AS THIS CONFLICT

WIDENS OR THERE IS A RESUMPTION OF MILITARY CONFLICT. CHRISTINA:

WE SAW THAT A LITTLE BIT IN SYRIA, WHICH YOU HAD WRITTEN IN

YOUR BOOK. I WAS STALKING YOUR X ACCOUNT

IN READING THROUGH YOUR TWEETS. YOU WROTE THAT WITH THE ASSAD

REGIME, IRAN PROBABLY SPENT $30 BILLION TO $50 BILLION PROPPING

UP THE REGIME, AND THAT WASN'T POPULAR WITH THE AYATOLLAH.

HE WAS AGAINST IT. BUT OTHERS IN THE IRGC

SUPPORTED IT AND THOSE PEOPLE ARE NOW NOT ALIVE FOR HIM TO

SAY I TOLD YOU SO OR FOR ANY OF THEM TO SAY I TOLD YOU SO.

WHY DID THEY WANT TO DO THAT?

WHAT WAS THE DEBATE WITHIN THE REGIME WHETHER TO SUPPORT

SYRIA, AND WHY DID IT ULTIMATELY FAIL?

HOW HAS IT IMPACTED THE RELATIONSHIP BETWEEN RUSSIA AND

IRAN? NICOLE:

IT WAS REALLY CRUCIAL TO IRAN'S AXIS OF RESISTANCE.

SYRIA SUPPORTED IRAN DURING THE WAR IN THE 1980'S AND THEY HAVE

BEEN A CRUCIAL COMPONENT FOR THIS BROADER STRATEGY IRAN HAD

IN THE REGION. PARTLY AS A RESUPPLY LINE TO

HEZBOLLAH. THIS WAS A CRUCIAL NOTE IN THAT

NETWORK. PARTS OF THE IRGC, AND FORMER

HEAD OF HEZBOLLAH WENT TO TEHRAN AND ARGUED IN FAVOR OF

AN INTERVENTION, SAYING IF ASSAD FELL THAT THE ENTIRETY OF

IRAN'S REGIONAL STRATEGY WOULD UNWIND.

EVENTUALLY, BECAUSE ASSAD FACED QUITE A BIT OF OFFENSIVES NOT

ONLY FROM THE ISLAMIC STATE BUT THE SYRIAN REBELS, THE IRANIANS

EVENTUALLY BROUGHT THE RUSSIANS IN FOR AIR SUPPORT.

BUT WHAT THE IRONIC PART OF THIS IS, WHEN ASSAD DID FALL,

YOU SAW THIS COINCIDE WITH THE COLLAPSE OF IRAN'S REGIONAL

STRATEGY. I THINK IN IRAN, THERE IS A BIT

OF DEBATE ABOUT WHETHER IT WAS IMPORTANT TO BE INVOLVED IN

SYRIA OR WHETHER THAT WAS JUST A FIELD STRATEGY TO BEGIN WITH.

DAVID: LETS COME FULL CIRCLE AND COME

BACK TO THAT MEETING THAT WILL TAKE PLACE BETWEEN PRESIDENT

TRUMP AND PRESIDENT XI. WE JUST THROUGH THE SUMMIT WITH

THE PAGEANTRY, THE KIDS WAVING THE FLAGS, THE WALK WITH THE

FICA SAYS. SO MUCH FOCUS ON STABILITY

BETWEEN THESE TWO POWERS. WHAT DOES THIS NEXT SUMMIT LOOK

LIKE? WILL THERE BE THE SAME EMPHASIS?

HOW DOES THIS RELATIONSHIP DIFFER AND HOW WILL THAT

MANIFEST ITSELF IN THE OVERTURES WE WILL SEE FROM THE

CHINESE PRESIDENT TOWARDS THE RUSSIAN PRESIDENT? NICOLE:

THE RUSSIA-CHINA RELATIONSHIP ISN'T JUST ABOUT THIS WAR WITH

IRAN. THEY HAVE FACED COMPLICATIONS

WHEN IT COMES TO ARMS CONTROL AND POTENTIALLY THE U.S.

BUILD UP. ALSO DEFENSE RELATIONS.

BOTH RUSSIA AND CHINA HAVE A PRETTY ROBUST DEFENSE

RELATIONSHIP. RUSSIA IS WORKING ON IMPROVING

PARTS OF THEIR MILITARY AND THE RUSSIANS HAVE BEEN HELPFUL.

ALSO, RUSSIA NEEDS CHINA FOR COMPONENTS OF UKRAINE.

I THINK IT IS LIKELY THE SUMMIT WILL REVOLVE AROUND SOME OF

THOSE ISSUES. WHETHER IT BE CLOSER DEFENSE

COOPERATION OR COORDINATION IN THE PERSIAN GULF, I THINK THAT

WILL BE ON THE AGENDA OF THIS UPCOMING SUMMIT.

OF COURSE, THE PRESS READOUTS WILL LIKELY EMPHASIZE THE

DIFFICULT SOVEREIGNTY, NONINTERFERENCE, WHICH YOU

TYPICALLY SEE WITH THE RUSSIAN AND CHINESE PRESS STATEMENTS.

CHRISTINA: GIVEN RUSSIA'S BANDWIDTH IN THE

WAR IN UKRAINE AND WHAT WE SAW WITH RUSSIA PULLING OUT OF

SYRIA AS ASSAD STARTED TO FALL,

IF YOU WERE INTO -- IN TEHRAN, WOULD YOU CONSIDER RUSSIA A

RELIABLE ALLY? NICOLE: THAT IS A DIFFICULT QUESTION.

I BELIEVE PARTS IN THE IRG, THEY VIEW RUSSIA QUITE FONDLY.

PARTLY BECAUSE IRAN ALSO ABANDONED ASSAD AS WELL.

BUT RUSSIA HAS ALWAYS FALLEN SHORT ON WHAT IRAN HAS WANTED,

WHICH IS FAR MORE EXTENSIVE COOPERATION, ESPECIALLY IN THE

MILITARY REALM. I THINK THE IRANIANS ARE

VIEWING THEIR STRATEGIC SITUATION AS ONE IN ISOLATION,

BUT STILL BENEFICIAL TO HAVE GOOD RELATIONS WITH BOTH THE

RUSSIANS AND CHINESE. CHRISTINA: WE WILL STAND BY TO STAND BY.

THANK YOU FOR JOINING US. DAVID: IT WILL BE FASCINATING TO WATCH

THAT SUMMIT UNFOLD. BUT I WAS TALKING ABOUT THE

PAGEANTRY, BUT AT THIS MOMENT WHEN YOU HAVE THIS PULLS OF

POWER, IT WILL BE FASCINATING. CHRISTINA:

DOES HE GET THE SAME LEVEL OF POMP AND CIRCUMSTANCE?

OR THIS IS MY REGULAR CASUAL FRIEND THAT I DON'T LEAVE MY

HOUSE FOR? DAVID: WE SHALL SEE AGAIN.

THAT MEETING IS SCHEDULED TO TAKE PLACE EARLY NEXT WEEK IN

BEIJING. IN THE MEANTIME, IT IS PRIMARY

DAY IN LOUISIANA WITH HEALTH A BIG FOCUS.

BILL CASSIDY IS FACING A PRIMARY CHALLENGE.

WE WILL COVER THAT IN A FEW MINUTES. ♪

LISA: THANK YOU FOR JOINING US. LET'S UPDATE YOU ON TODAY'S TOP

STORIES.

GOOGLE, YOUTUBE AND SNAPE HAVE SETTLED A LAWSUIT.

A SCHOOL HAS CLAIMED ADDICTION TO SOCIAL MEDIA HAS DISRUPTED

LEARNING AND CAUSE SCHOOLS TO SPEND A MASSIVE AMOUNT OF MONEY

FIGHTING THE MENTAL HEALTH CRISIS.

THE TRIAL WAS SCHEDULED FOR OAKLAND, CALIFORNIA.

ELON MUSK SAYS HE IS NOT SELLING ANY SPACE X SHARES.

IT WAS IN RESPONSE TO A USER POST SUGGESTING HE DO SO.

IT COMES AS SOURCES TELL BLOOMBERG THE COMPANY IS

LOOKING TO FILE FOR THAT IPO AS SOON AS WEDNESDAY.

REUTERS REPORTING THAT SPACEX WILL LIST UNDER THE TICKER SPCX.

THE SPURS ADVANCED TO THE FINALS AFTER BEATING THE

TIMBERWOLVES. THE KNICKS HAVE TO WAIT FOR

THEIR NEXT OPPONENT. IN BASEBALL, THE YANKEES

DEFEATED THE METS 5-2 IN THE OPENING GAME OF THE SUBWAY

SERIES AT CITI FIELD. THEY PLAY AGAIN TONIGHT, WHICH

COULD BE DIFFICULT FOR THOSE COMING FROM THE EAST WITH THE

STRIKE. THE PGA CHAMPIONSHIP CONTINUES

IN PENNSYLVANIA. MAVERICK MCNEALY AND ALEX

SMALLEY ARE TIED AT FOUR UNDERPAR.

TONIGHT, THE PREAKNESS STAKES UNDERWAY IN MARYLAND.

NOT RUNNING IN THE RACE, GOLDEN TEMPO, DUE TO THE SHORT REST

TIME BETWEEN THE DERBY AND THE SECOND LEG OF THE TRIPLE CROWN.

CHRISTINA: JUST ABOUT AN HOUR, PULSE WILL

OPEN IN THE LOUISIANA PRIMARY. ONE PARTICULAR RACE WILL TEST

PRESIDENT TRUMP'S ENDORSEMENT POWER, AS WELL AS THE POWER OF

THE MAHA MOVEMENT. INCUMBENT SENATOR BILL CASSIDY,

WHO WAS A DOCTOR, FACES A STRONG CHALLENGE FROM

CONGRESSWOMAN JULIA LETLOW, WHO HAS BEEN ENDORSED BY MAHA

ACTION. PRESIDENT TRUMP HANDPICKED

LETLOW TO TRY TO PUSH CASSIDY OUT.

WORTH NOTING, CASSIDY WAS ONE OF THE SEVEN SENATORS WHO VOTED

TO CONVICT TRUMP AFTER THE JANUARY 6 IMPEACHMENT.

JOINING US IS BLOOMBERG ROBIN EHRET -- BLOOMBERG GOVERNMENT

REPORTER. I AM BEING TOLD THIS IS A

JUNGLE PRIMARY. THAT IS AN ACTUAL TERM WE LOSE.

-- WE USE. EXPLAIN WHAT A JUNGLE PRIMARY

IS. YOU'VE GOT THREE MAIN CONTENDERS ON THE BALLOT.

WHAT HAPPENS NEXT?

>> GREAT QUESTION, AND HI. THANKS FOR HAVING ME.

BASICALLY, THEY JUST CHANGED THE SYSTEM.

THIS IS THE FIRST TIME THEY ARE DOING THIS.

AND SO, IT USED TO BE AN OPEN PRIMARY SYSTEM.

SO, ANYONE COULD VOTE IN PRIMARY ELECTIONS.

NOW IT IS MORE OF A CLOSED SYSTEM.

SO, WE HAVE THREE REPUBLICAN CANDIDATES WHO ARE RUNNING, AND

WHOEVER GETS THE TOP -- IF NO ONE REACHES 50% OF THE VOTE,

THEN IT MOVES TO A RUNOFF IN JUNE.

IF SOMEONE REACHES MORE THAN 50%, THEY WIN THE PRIMARY AND

THEY ARE MOVING ONTO THE GENERAL ELECTION.

BUT THAT IS DIFFERENT THAN WHAT IT WAS BEFORE.

BEFORE, WHOEVER WANTED TO RUN WOULD RUN TO THE GENERAL

ELECTION, BASICALLY. THIS IS TOTALLY DIFFERENT.

AND PEOPLE ARE SAYING IT COULD BE A DISADVANTAGE TO CASSIDY

BECAUSE HE MIGHT APPEAL TO SOME MORE MODERATE VOTERS, MORE

MODERATE REPUBLICAN VOTERS, OR EVEN DEMOCRATIC VOTERS WHO LIVE

IN A RED STATE.

SO, NOW HE IS RUNNING AGAINST TWO OTHER REPUBLICANS IN THIS

CLOSED PRIMARY SYSTEM THAT IT MIGHT BE DIFFICULT FOR HIM TO

MOVE FORWARD INTO THE RUNOFF OR TO WIN OUTRIGHT THE PRIMARY, IF

THAT MAKES SENSE. CHRISTINA: WE HAVE SEEN THIS A LOT,

ESPECIALLY IN DISTRICTS THAT HAVE BEEN REDRAWN TO BE MOSTLY

REPUBLICAN OR DEMOCRAT. THIS IS WHY WE ARE HAVING SUCH

A HARD TIME GETTING THE PARTIES TO TALK TO EACH OTHER BECAUSE

IN THE PRIMARIES THEY HAVE TO RUN TO THE SIDES OF THEIR

PARTIES AND IT IS HARD FOR THEM TO COME BACK TO THE MIDDLE EVEN

IF THEY WANT TO IN THE GENERAL. SO MAHA.

IT HAS MORPHED INTO SOMETHING DIFFERENT.

VICTORIA: I WOULD SAY THE MAKE AMERICA

HEALTHY AGAIN MOVEMENT STILL HAS SOME BIPARTISAN APPEAL AND

THAT IS BECAUSE IT IS SUCH A BROAD MOVEMENT.

IT ENCOMPASSES PEOPLE WHO DON'T LIKE PROCESSED FOODS, WHO HAVE

CONCERNS ABOUT VACCINES, WHO ARE ANTI-PESTICIDE.

PEOPLE HAVE A LOT OF DIFFERENT CONCERNS THAT FALL WITHIN YOU

WOULD CALL THE MAHA AGENDA. THERE ARE SOME SECTORS OF

DEMOCRATS THAT DO AGREE WITH SOME OF THAT IN REGARDS TO

PESTICIDES, PARTICULARLY IN FOOD.

I WILL NOT SAY IT IS COMPLETELY PARTISAN.

BUT MAHA ACTION, THE PAC ALIGNED WITH JULIA LETLOW, AS

YOU MENTIONED AT THE TOP, IS TRYING TO ELECT JUST

REPUBLICANS TO CONGRESS AND REPUBLICANS THAT INCLUDE MAHA

AGENDA ITEMS IN THEIR CAMPAIGNS. LETLOW IS REALLY THE FIRST

CANDIDATE THEY ARE PUTTING A LOT OF MONEY AND POWER TOWARDS

AND TALKING ABOUT A LOT. WE WILL SEE IF THAT MAHA

ENDORSEMENT AND MONEY WILL HELP MOVE HER THROUGH.

WHETHER IT REALLY HAS ANY POWER IN THE RACE ITSELF IS A

QUESTION STILL TO BE ANSWERED BECAUSE THERE'S A LOT OF TALK

ABOUT IT BUT ARE VOTERS LISTENING TO IT?

DO THEY CARE ABOUT THAT MAHA ELEMENT AS MUCH AS THEY MIGHT

CARE ABOUT OTHER ELEMENTS? CERTAINLY AFFORDABILITY IS A

HUGE DEAL IN THIS ELECTION SO FAR.

IT MIGHT BE A CONCERN, BUT WILL IT BE ONE OF THE TOP CONCERNS

THAT MOTIVATES VOTERS TO GET OUT AND VOTE IN THIS ELECTION?

I THINK WE WILL SEE AFTER WE SEE THE RESULTS. CHRISTINA:

TALK TO US ABOUT CONGRESSWOMAN JULIA LETLOW. WHO IS SHE?

WHERE DID SHE COME FROM? AND WHAT DOES IT MEAN FOR

TRUMP'S ENDORSEMENT POWER IF SHE WINS OR DOESN'T WIN?

VICTORIA: GREAT QUESTION. SHE, INTERESTINGLY ENOUGH, SHE

IS SERVING IN HER HUSBAND'S SEAT, OR HER FORMER HUSBAND'S

SEAT. HER HUSBAND DIED OF COVID. IT IS KIND OF INTERESTING.

THERE IS THAT HEALTH ELEMENT THERE.

SHE HAS SAID SHE DOES SUPPORT THE COVID VACCINE, BUT SHE

BELIEVES IT IS SOMETHING THAT SHOULD BE DISCUSSED BETWEEN THE

PATIENT AND THEIR DOCTOR. THAT IS A COMMON REPUBLICAN

MESSAGE COMING OUT OF COVID. THEY DON'T LIKE THE IDEA OF

VACCINE MANDATES WHERE EVERYONE HAS TO GET A VACCINE.

THAT IS AN INTERESTING NOTE ABOUT HER.

WHEN I'VE TALKED TO HER IN THE HALLWAYS OF CONGRESS, SHE SAYS

SHE REALLY ALIGNS WITH MAHA A LOT ON THE NUTRITION PRIORITIES.

SHE HAS SOME YOUNG CHILDREN. SHE CARES ABOUT GETTING WHOLE

FOOD, NON-PROCESSED FOODS INTO THEIR BODIES.

I THINK IT IS ALSO INTERESTING BECAUSE BILL CASSIDY HAS BEEN A

SENATOR FOR 10 YEARS. HE IS AN INCUMBENT SENATOR.

CHRISTINA: HE ALSO GETS A LOT OF SUPPORT

FROM PHARMA AND HEALTH CARE FOLKS WHO WILL LOSE A BIG ALLY

ON CAPITOL HILL, PUSHING BACK AGAINST THE VEHEMENT

ANTI-VACCINE STRAINS IN THE PARTY, RIGHT? VICTORIA:

CERTAINLY. I HAVE CRUNCHED SOME OF THOSE

CAMPAIGN-FINANCE NUMBERS AND HE GETS A LOT OF MONEY FROM THE

PHARMACEUTICAL INDUSTRY, FROM THE HEALTH CARE INDUSTRY.

HE HAS THE TOP CHAIRMANSHIP ON ONE OF THE HEALTH COMMITTEES ON

THE HILL, SO IT MAKES SENSE THAT HE WOULD GET A LOT OF

MONEY FROM THESE INDUSTRY GROUPS.

THAT IS HOW CONGRESS WORKS. BUT HE CERTAINLY HAS BEEN

PHARMA FRIENDLY.

HE CAN BE SKEPTICAL ABOUT SOME ANTI-PHARMA POLICIES SOMETIMES.

IT KIND OF DEPENDS. IF YOU LOSE THIS, THEY WOULD

LOSE THAT ALLY POTENTIALLY. THOUGH I THINK ANYONE WHO GETS

INTO A SENATE SEAT WILL THEN HAVE CORPORATE GROUPS WHO WANT

TO COME AND GIVE THEM MONEY. IF THAT CHANGES, IF LETLOW IS

IN THE SEAT OR FLEMING IS IN THE SEAT, THEY WILL PROBABLY

STILL GET MONEY FROM CORPORATE INTERESTS. CHRISTINA:

I JUST WANT TO SAY, CASSIDY IS PRO-VACCINE BUT HE DID GET A

LOT OF FLAK FOR VOTING TO CONFIRM RFK.

THAT WASN'T ENOUGH FOR THE PRESIDENT?

HE STILL ENDORSED SOMEONE ELSE IN THIS PRIMARY? VICTORIA: YEAH.

THAT IS THE CRUX OF ALL OF THIS AND THAT IS WHY EVERYONE IS

WATCHING THIS, BECAUSE WE HAVE SEEN CASSIDY TANGLE WITH HIS

CONSCIENCE. LAST YEAR, IT WAS A REALLY

PUBLIC STRUGGLE. HE LITERALLY SAID IN THE

CONFIRMATION HEARING FOR SECRETARY KENNEDY, I'M

STRUGGLING WITH MY VOTE FOR YOU AND THAT IS BECAUSE OF YOUR

STANCES ON VACCINES. AND THEN WE SAW CASSIDY GO AND

VOTE TO CONFIRM KENNEDY ANYWAYS. AND THAT WAS NOT ENOUGH FOR

TRUMP. AND SO, TRUMP WANTS HIM OUT.

CHRISTINA: WE WILL HAVE TO LEAVE IT THERE

BUT WE WILL TALK TO YOU AGAIN AFTER THIS SHAKES OUT AND SEE

HOW IT WENT. VICTORIA KNIGHT, THANK YOU SO

MUCH FOR JOINING US. DAVID: COMING UP, BTW, BLOOMBERG THIS

WEEKEND. ALSO, BY THE WAY.

THAT IS COMING UP ON BLOOMBERG THIS WEEKEND. STAY WITH US.

CHRISTINA: WELCOME BACK TO BLOOMBERG THIS

WEEKEND, OR BTDUBS, AS I CALL IT. HERE ARE SOME OF THE STORIES

YOU MIGHT HAVE MISSED THIS WEEK. DAVID: I'VE MISSED ALL OF THESE

BECAUSE I WAS ON ASSIGNMENT THIS WEEK. CHRISTINA:

WE MISSED YOU A LITTLE BIT. JUST WAIT FOR THE QUIZ. LISA:

LET ME GET YOU UP-TO-DATE. THESE ARE THE ONES YOU MIGHT

HAVE MISSED. FAMILY BENEFITS. IN THE PAST, IT WAS ALL ABOUT

WHO CAN PROVIDE THEM. BUT IT IS STARTING TO CHANGE.

WHY TWO BIG COMPANIES JUST CUT PAID FAMILY LEAVE. DAVID:

THEY ARE CUTTING LEAVE? LISA: YES. THIS IS DELOITTE AND ZOOM.

THEY SAID THEY ARE CUTTING THE AMOUNT OF FAMILY LEAVE THEY

OFFERED. IT IS IMPORTANT BECAUSE IT IS A

BIG GOAL TO GET WOMEN TO JOIN COMPANIES.

DELOITTE IS ALSO REDUCING FAMILY VACATION TIME,

ELIMINATING FINANCIAL SUPPORT FOR ADOPTIONS, SURROGACY, IVF.

OTHER NICE TO HAVE PARKS, REMOTE WORK.

WE HAVE BEEN HEARING ABOUT THAT. A LOT OF PEOPLE ARE BEING ASKED

TO COME IN. THE REASON THEY ARE SAYING IT

IS NOW THE WORKER IS NOT THE ONE IN CONTROL.

NOW THE EMPLOYER IS IN CONTROL, SO THEY HAVE MORE SAY IN WHAT

CAN BE DONE. THAT IS WHY THEY ARE SAYING THE

WORKERS DON'T HAVE THE UPPER HAND ANYMORE. IT IS TOUGH.

DAVID: YOU MENTIONED TO COMPANIES IN

THE COMPETITIVE MARKETPLACE. A LOT OF COMPANIES OFFERING

BETTER BENEFITS POTENTIALLY WOULD PUT THEM AT A HUGE

DISADVANTAGE. CHRISTINA: IT IS INTERESTING BECAUSE

DELOITTE IS SUCH A BIG NAME IN D.C. AND I WONDER IF YOU HAVE SO

MANY UNEMPLOYED FEDERAL WORKERS THEY FEEL THEY CAN SCOOP UP

WORKERS AND SAY, THIS IS A JOB, TAKE IT OR LEAVE IT. DAVID:

ANOTHER INDICATION OF WHAT THIS MARKET IS LIKE. LISA:

THERE ARE OTHER COMPANIES INCREASING.

STARBUCKS INCREASED THEIR PARENTAL LEAVE.

THIS NEXT STORY, THESE ARE THE EXTREMES THAT BOYS AND YOUNG

MEN ARE GOING TO TO LOOK PERFECT.

THIS IS IN THE WALL STREET JOURNAL.

TEEN BOYS AND YOUNG MEN ARE INJECTING PEPTIDES IN SEARCH OF

PERFECTION. YOU ARE ASKING, WHAT ARE

PEPTIDES? THEY ARE LIKE BUILDING BLOCKS.

I SAW IT IN YOUR FACE. THEY ARE THE BUILDING BLOCKS OF

PROTEINS. THEY PROMISED THINGS LIKE

MUSCLE RECOVERY. GLP-1'S, COLLAGEN PEPTIDES TO

MAKE YOUR SKIN LOOK BETTER. THERE IS A TANNING PEPTIDE.

DID YOU KNOW THAT? ALSO, THE GROWTH HORMONE

PEPTIDES, WHICH A LOT OF PEOPLE ARE CONCERNED ABOUT.

THEY ARE NOT APPROVED BY THE FDA AND THEY ARE SOLD PRIMARILY

ON THE ONLINE GRADE MARKET. AS I'VE KNOWN FROM TALKING TO

MY DAUGHTER, THEY DO NOT TELL THEIR PARENTS AND THEY BUY

THESE THINGS. IT HAS A LOT OF PEOPLE WORRIED.

THESE ARE KITS 13, 14, 15, 16, WHO ARE STILL GROWING.

PARENTS, HAVE THE CONVERSATIONS WITH YOUR KIDS.

YOU WILL BE SURPRISED SOME OF THE THINGS YOU FIND OUT.

BUT IT IS ONGOING AND DOCTORS ARE WARNING ABOUT IT.

IT IS A GOOD THING TO KEEP AWARE OF. DAVID:

BECAUSE SO MANY PEOPLE USING THESE GLP-1'S, THE NOTION THAT

YOU WOULD INJECT YOURSELF WITH SOMETHING IS BECOMING EASIER.

CHRISTINA: IT IS REALLY HARD BECAUSE BACK

IN THE DAY, THE ONLY THINGS YOU HAD TO INJECT YOURSELF IS IF

YOU WERE A DIABETIC OR GOING THROUGH IVF.

THAT WAS SUCH A BIG THING. NOW TO YOUR POINT, SO MANY

PEOPLE ARE USED TO DOING IT, IT IS LIGHT, IT IS NOT THAT BIG OF

A DEAL. I THINK THE THRESHOLD FOR

THINGS PEOPLE ARE WILLING TO INJECT HAVE DROPPED. DAVID:

YOU JUST DON'T KNOW WHAT YOU'RE GETTING. BUT WHO KNOWS.

IT IS NOT APPROVED BY ANY REGULATORY BODY. LISA:

GO SEARCH YOUR MEDICINE CABINETS FOR PEPTIDES.

HOW MUCH WOULD YOU PAY FOR A COCKTAIL? DAVID:

I HAVE PAID $20. BUT IF I HAVE HAD ONE COME OUT

PAYING $20 FOR ANOTHER BECAUSE I'VE HAD THE FIRST COCKTAIL.

LISA: HERE IS A NEW THING.

A $12 COCKTAIL, THAT HAS BECOME THE SMARTEST PLAY IN THE BAR

BUSINESS BECAUSE PEOPLE'S BUDGETS ARE TAPPED, YOU'RE

TRYING TO SAVE, CUT BACK. THEY ARE HAVING ONE DRINK

INSTEAD OF TWO. SO, RESTAURANTS ARE CHANGING

THE GAME PLAN. THEY FIGURE BETWEEN 10 AND $12

IS THAT SWEET SPOT. THAT IS THE PLACE BECAUSE WHAT

THAT DOES IS PEOPLE SAY, IT IS ONLY $10?

LET ME GET ANOTHER ONE. IT STARTS TO ADD UP.

THEN THEY GET PEOPLE WHO ARE HAPPY, THEY ENJOYED THEMSELVES,

THEY COME BACK. DAVID: YOU KNOW WHAT I LOVE?

THE BONUS CARAFE. CHRISTINA: WHAT IS A BONUS CARAFE?

DAVID: IT MAKES ME FEEL BETTER ABOUT

IT. CHRISTINA: I NEED TO KNOW WHAT BARS YOU GO

TO THAT YOU GET A BONUS CARAFE. DAVID:

COME OUT WITH ME AND TOM KEENE. WE THINK WE KNOW ALL THE RIGHT

PLACES. CHRISTINA: I WENT OUT WITH MY BROTHER AND

HE GOT THOSE SPLASHES. DAVID: YOU FEEL LIKE YOU'RE GETTING

EXTRA, EVEN IF YOU ARE PAYING. CHRISTINA:

EVEN THOUGH THE WIND WAS $29 A GLASS AND IT WAS THE CHEAPEST

ON THE MENU. LISA: YOU GOT TO BE NICE TO THE

BARTENDERS. THIS IS FROM THE WEEKEND.

THE GREAT WEALTH TRANSFER INCLUDES $570 BILLION IN

CLASSIC CARS. IMAGINE GRANDPA JOE'S CLASSIC

CADDY. THERE IS NEW DATA THAT NEW

VEHICLES WILL TRANSFER TO THIS NEW GENERATION OVER THE NEXT 15

YEARS. THAT IS WHERE YOU GET THAT $570

BILLION. BUT IT HAS BEEN CAUSING ISSUES

BETWEEN FAMILIES. THEN THEY ARE STUCK WITH IT.

DO WE KEEP IT, SELL IT? IF WE KEEP IT, ALL THIS MONEY

THEY ARE SPENDING TO KEEP THIS FAMILY HEIRLOOM RUNNING, IT IS

A LOT OF MONEY. DAVID:

I WOULD BE GETTING MAMA GURA'S HYUNDAI ACCORD.

IT IS STILL RUNNING. IT IS A GREAT PIECE.

HANNAH WROTE THAT ONE FOR BLOOMBERG WEEKEND.

DO CHECK THAT OUT. I HADN'T THOUGHT ABOUT THAT.

I AM NOT IN A POSITION TO INHERIT ANY CLASSIC CARS.

CHRISTINA: MY BROTHER DIDN'T INHERIT MY

NON-CLASSIC CAR WHEN I MOVED TO NEW YORK.

HE STILL HAS NOT PAID ME FOR IT. IT'S FINE. DAVID:

SAY IT TO THE CAMERA. CHRISTINA: HE HAS NOT PAID ME FOR IT.

I'M COMING FOR YOU, JOEY. [LAUGHTER] DAVID:

THANK YOU, LISA. GREAT ROUNDUP OF STORIES.

COMING UP, HOW THE WAR IN IRAN COULD IMPACT THE COST OF AN OIL

CHANGE. CHRISTINA: THE NEXT HOUR OF BLOOMBERG THIS

WEEKEND WITH ALL THAT NEWS AND MUCH MORE STARTS RIGHT NOW.

>> WELCOME TO BLOOMBERG THIS WEEKEND LIVE FROM NEW YORK WITH

DAVID GURA, CHRISTINA RUFFINI, AND LISA MATEO.

AND THE STORY THAT HIT HOME ON YOUR DAYS OFF.

CHRISTINA: IT IS 8:00 A.M. HERE IN NEW YORK.

WE ARE COMING TO YOU FROM BLOOMBERG WORLD HEADQUARTERS.

DAVID: BRINGING YOU THE LATEST BREAKING NEWS THIS MORNING AND

EVERY WEEKEND. CONTINUING TO PIECE TOGETHER

WHAT WE LEARNED OVER THE COURSE OF THE WEEK WHEN PRESIDENT

TRUMP WENT TO CHINA AND SAT DOWN WITH PRESIDENT XI JINPING

AND HAVE THOSE WALKS IN THE GARDEN.

WE WILL TALK ABOUT THAT WITH STEPHEN ENGLE IN A MOMENT.

WE ARE LOOKING TO THIS OTHER SUMMIT THAT IS GOING TO TAKE

PLACE BETWEEN PRESIDENT XI AND PUTIN. LISA:

PRESIDENT DONALD TRUMP BACK AT THE WHITE HOUSE AFTER RETURNING

FROM HIS THREE-DAY TRIP TO CHINA TO MEET WITH PRESIDENT XI

JINPING. PRES. TRUMP:

WE HAD GREAT DEALS AND WE HAVE A GREAT RELATIONSHIP.

I THINK IT REALLY WAS A HISTORIC MOMENT. LISA:

PRESIDENT TRUMP HAS NOT MADE A DECISION ON WHETHER A MAJOR

SALE OF U.S. ARMS TO TAIWAN CAN MOVE FORWARD.

THE PRESIDENT SAID THERE IS A THREE WAY NUCLEAR DEAL

INVOLVING THE U.S., RUSSIA AND CHINA AND THE KREMLIN SAYS

PUTIN WILL VISIT CHINA NEXT WEEK.

IRAN'S FOREIGN MINISTER SAYS THAT A LACK OF TRUST REMAINS

THE BIGGEST OBSTACLE IN NEGOTIATIONS TO END THE WAR

WITH THE U.S.. HE SAYS THERE HAVE BEEN

CONTRADICTORY MESSAGES FROM THE U.S. THAT HAVE MADE NEGOTIATIONS

DIFFICULT. ISRAEL CARRIED OUT STRIKES ON

GAZA KILLING HAMAS'S MOST SENIOR MILITARY LEADER

ACCORDING TO ISRAEL SECURITY AGENCY.

THE EMERGENCY SERVICES IN GAZA SAY THE STRIKES KILLED SEVEN

PEOPLE WITH 50 OTHERS INJURED. THE PENTAGON DRAWING DOWN

THOUSANDS OF TROOPS IN EUROPE BY STOPPING UNITS FROM

DEPLOYING TO POLAND AND GERMANY. SEVERAL U.S.

OFFICIALS TOLD THE ASSOCIATED PRESS THAT 4000 TROOPS FROM AN

ARMY BRIGADE ARE NO LONGER IN ROUTE TO POLAND.

THE TRUMP ADMINISTRATION SAID IT WAS CUTTING U.S.

FORCES ONLY IN GERMANY. SERVICE ON THE NATION'S LARGEST

COMMUTER RAILWAY HAS COME TO AN END AS WORKERS GO ON STRIKE.

THE UNIONS FAILED TO COME TO AN AGREEMENT ON RAISES AND ISSUES

LIKE HEALTH CARE CONTRIBUTIONS. ONE UNION MEMBER SAYS IT IS NOT

THE BEST SITUATION.

>> I HAVE FAMILY ON THE TRAIN EVERY WEEKEND TO VISIT AND THIS

IS GOING TO BE DIFFICULT BECAUSE THEY WILL HAVE TO DRIVE

WHICH IS ALSO CHALLENGING. LISA: THAT WAS A COMMUTER WHO SAYS

SHE HAS FAMILY AND SHE TALKED ABOUT THE DIFFICULTIES.

270 RIDERS RIDE BETWEEN NEW YORK CITY AND LONG ISLAND.

THE MTA SAYS THEY WILL PROVIDE THREE SHUTTLE BUSES.

THIS IS THE FIRST STRIKE ON THE RAILROAD SINCE 1994 AND A TWO

DAY SUSPENSION SHUT DOWN THE SERVICE AND BACK THEN IT LASTED

TWO DAYS. DAVID: IT WILL COST $500,000 PER DAY

TO PROVIDE THOSE SHUTTLE BUSES. WHAT A NIGHTMARE FOR COMMUTERS.

IT IS GOING TO BE DIFFICULT FOR A LOT OF COMMUTERS TRYING TO

FIGURE OUT WHERE TO GO TO ROY EVER IN THE CITY.

IT SEEMS LIKE A MESS.

I'M ALSO CURIOUS, IF THIS WERE RESOLVED TOMORROW, WOULD MONDAY

BE FINE? I HAVE NO IDEA HOW QUICKLY THEY

CAN GO FROM A STANDSTILL TO BACK IN MOTION. CHRISTINA:

IT IS GOING THROUGH PIN STATION AND PEOPLE ARE ALREADY STRESSED

ABOUT THE STRAINS FOR THE WORLD CUP STADIUM AND PEOPLE ARE

BEING STRESSED OUT AND WHETHER OR NOT PEOPLE BELIEVE THE NEW

YORK INFRASTRUCTURE CAN HANDLE THAT. DAVID:

ONE OF OUR COLLEAGUES WILL JOIN US IN THE NEXT HOUR TO TALK

MORE ABOUT THIS. IN THE MEANTIME PRESIDENT TRUMP

IS BACK AFTER HIS TRIP TO CHINA, THE FIRST VISIT BY AN

AMERICAN PRISON TO CHINA IN NEARLY NINE YEARS AND PRESIDENT

TRUMP'S FIRST RETURN SINCE HIS HIGH-PROFILE TRIP IN 2017.

CHRISTINA: THIS TIME THE BACKDROP IS

DIFFERENT. A WAR IN IRAN, AND A U.S.

CHINA RELATIONSHIP THAT HAS BEEN STRAINED BY TRADE, TAIWAN,

TECHNOLOGY AND GLOBAL SECURITY. BACK WITH US TO UNPACK ALL OF

THAT FROM BEIJING IS OUR NORTH ASIA CORRESPONDENT STEPHEN

ENGLE. I WANT TO START REALLY BROADLY

THIS TIME AND TALK ABOUT THE DIFFERENT APPROACH FROM THESE

TWO WORLD LEADERS.

I FEEL LIKE SHE'S IN PINK IS VERY STRATEGIC, DELIBERATE AND

MOSTLY STICK TO THE STEPPED -- STICKS TO THE SCRIPT.

PRESIDENT TRUMP MOSTLY GOES OFF OF LIVES.

SOMETIMES THAT WORKS FOR HIM. SOMETIMES IT IS LESS EFFECTIVE.

WHAT ARE YOUR TAKEAWAYS AFTER THIS SUMMIT? STEPHEN:

THAT WAS THE FOCUS OF THE PREVIEW STORY THAT WAS DOING

BEFORE WE GOT HERE AS WELL FOR THIS TRUNCATED 36 HOUR

BILATERAL TALKS BETWEEN PRESIDENT XI JINPING AND DONALD

TRUMP ABOUT THE LEVEL OF PREPARATION THAT THE CHINESE

WERE CONCERNED THAT THE U.S. HAD NOT PUT IN THE REQUIRED

AMOUNT OF TIME AND MUTUAL CONSULTATIONS TO HAVE MUTUALLY

ACCEPTABLE DELIVERABLES. THE CHINESE LIKE EVERYTHING

ORCHESTRATED AND WELL PLANNED OUT AND WELL ILLUSTRATED ON

WHAT THOSE DELIVERABLES WILL BE. MONTHS AND MONTHS IN ADVANCE.

THEY DID NOT HAVE THAT LUXURY THIS TIME BECAUSE OF WHAT YOU

JUST ALLUDED TO. THEY WERE QUITE CONCERNED ABOUT

THE SPONTANEITY OF THE TRUMP ADMINISTRATION AND THE

PRESIDENT HIMSELF.

THAT IS WHY THE TONE WAS THE CHINESE ARE ON THEIR HOME TURF.

THEY GRAB THE NARRATIVE VERY QUICKLY BEFORE THE FIRST

BILATERAL WAS EVEN OVER THEY HAD ALREADY PUT OUT LINES FROM

XI JINPING. THEY WANTED TO GET THEIR

NARRATIVE OUT BEFORE THE BILATERAL AND THE NEWS MEDIA

THAT WAS CONGREGATED FROM AROUND THE WORLD STARTED

PICKING UP ON SOME OF THE ISSUES OF IRAN.

THAT IS SOMETHING THAT THE CHINESE DID NOT WANT TO GO INTO

THAT QUAGMIRE. THEY WANTED TO GET THEIR POINT

ON TAIWAN ACROSS QUICKLY. I HAVE BEEN COVERING CHINA AND

LIVING OUT HERE FOR 36 YEARS AND WHEN DONALD TRUMP SAYS HE

WOULD LIKE TO SEE CHINA COOL DOWN A LITTLE BIT ON THE TAIWAN

ISSUE, THEY ARE NOT GOING TO COOL DOWN ON THIS ISSUE, TRUST

ME. DAVID: LET ME ASK YOU WHAT I MENTIONED

AT THE TOP OF THE SHOW WHICH IS THE AMOUNT OF TIME THESE

LEADERS HAD. WE WERE TALKING TO NICK BURNS,

THE FORMER U.S. AMBASSADOR TO BEIJING AND SAID

THAT IS THE THING TO WATCH FOR. THERE IS A LONG TABLE WITH THE

CHINESE DELEGATION ON ONE SIDE AND THE U.S.

ON THE OTHER SIDE WILL BE NO ROOM FOR SPONTANEITY.

WHAT DID YOU MAKE OF THE GARDEN WALKS, THE NUMBER OF MEETINGS,

THE KIND OF INTERFACE THAT THESE TWO LEADERS HAD? STEPHEN:

I THINK THE BIGGEST TAKE AWAY REALLY IS A CONTINUE TO BUILD

UP OF THEIR INTERPERSONAL RELATIONSHIP BECAUSE THE LAST

YEAR HAS BEEN QUITE BRUTAL IN GEOPOLITICAL RELATIONS AND

COMMERCIAL RELATIONS BECAUSE OF THE TARIFFS AND DISPUTES OVER

NATIONAL SECURITY AND TARIFFS UPWARDS OF 145% AND THE

LEVERAGE THAT EACH SIDE WAS FINDING.

CHINA FOUND THEIR LEVERAGE WITH RARE EARTHS. THE U.S.

TRIED TO WIELD THEIR LEVERAGE WITH THE EXPORT CONTROLS ON

SHIPS AND OTHER AREAS. I GUESS THE BIG TAKE AWAY HERE

IS THEY HAVE HAD A NUMBER OF WALKS IN THE PARK TOGETHER NOW.

THEY WERE IN BUSSAN JUST MONTHS AGO. THE WALK AT THE LEADERSHIP

COMPOUND, THAT COMPLEX DATES BACK TO THE 1100S AND THE 1400S.

XI JINPING REALLY WAS TALKING ABOUT THE HISTORICAL

SIGNIFICANCE OF CHINA'S PAST. AND HE EVEN MENTIONED THE GREEK

HISTORY OF ESTABLISHED POWERS OFTEN TIMES GET DISPLACED BY

RISING POWERS. HE WAS DEFINITELY STEEPED IN

HISTORY. DAVID: THE LUCIDITY STRAP CAME UP.

HE SAID IT. IT WAS NOT ME. CHRISTINA:

STEPHEN ENGLE, THANK YOU SO MUCH FOR DROPPING THAT

KNOWLEDGE AND WE EXPECT SOME OF THOSE PARTS AT SOME POINT.

DAVID: A GROUP OF AMERICANS TRAVEL TO

CHINA WITH PRESIDENT TRUMP AND THEY HITCHED A RIDE ON AIR

FORCE ONE. CHRISTINA:

JENSEN HUANG, ELON MUSK AMONG MORE THAN A DOZEN EXECUTIVES

WHO MET WITH TOP CHINESE OFFICIALS THIS WEEK.

WE SPOKE WITH CAROLINE HYDE ABOUT WHAT THESE BIG TECH

COMPANIES WERE HOPING TO GET OUT OF THEIR VISIT. CAROLINE:

THESE ARE COMPANIES THAT PRESIDENT TRUMP MADE CLEAR WE

WANT TO HAVE A DOOR OPEN FOR THEM TO BE ABLE TO SELL TO THE

CHINESE CONSUMER. APPLE, WE HAVE SEEN THE LEGACY

OF TIM COOK BE THE ABILITY TO NAVIGATE CHINA WHETHER THAT IS

THE CONSUMER OF CHINA, A REAPPLICATION OF THE AMOUNT OF

SALES THEY ARE GETTING OUT OF THE CHINESE CONSUMER.

WE HAVE SEEN IPHONE TO MAN, BACK TO THAT COUNTRY BUT MOST

IMPORTANTLY IS THE SUPPLY CHAIN FOCUS.

A KEY RELATIONSHIP FOR TIM COOK AND NO WONDER HE WAS THERE.

QUALCOMM IS SELLING THEIR SHIPS OVER THERE SO THEY HAD A

REPRESENTATIVE OVER. ELON MUSK, TESLA IS MAKING AN

AWFUL LOT OF CARS IN THE FACTORY THERE.

THE DOMINANCE OF CHINA RARE EARTHS KEEPS BEING THIS FOCUS

IN TERMS OF THE GEOPOLITICAL ANGST THAT WE HAVE WITH

U.S.-CHINA RELATIONSHIP.

TESLA HAS SEEN AN UPTICK OF SALES COME UP 36%.

THAT IS A KEY MARKET FOR THEM TO EXPAND AND GET FDA CLEARANCE

SO ACTUALLY GET FULL SELF-DRIVING IS WHAT HE HOPES

AND REGULATION COULD BE MORE WELCOMING TO THE AUTONOMOUS

FUTURE HE IS BETTING ON. THERE ARE A LOT OF HOPES AND

THE WHIRLWIND APPEARANCE OF THE NVIDIA CEO JENSEN HUANG.

IN MANY WAYS AN EXTRAORDINARY MOVE IN CHINESE CHAIRS. A.I.

RELATED STOCKS HOPING TO GET ACCESS TO THE CRUCIAL CHIPS

FROM NVIDIA. CHINA DOES NOT WANT THEM.

THEY GOT CLEARANCE TO BE ABLE TO SELL TO CHINA BUT CHINA

WANTS TO FOCUS ON ITS OWN SUPPLY CHAIN.

WE ARE SEEING A KNOCK TO NVIDIA SHARES ON THE POSTMATCH

ANALYSIS OF THIS MEETING.

>> I THINK A LOT OF THESE FOLKS WERE HOPING TO GET A BUMP AND

IT HAS NOT FOLLOWED THROUGH INCLUDING BOEING WHO LEFT WITH

A DEAL TO SELL 200 JETS BUT NOT AS MANY AS FOLKS HAD HOPED FOR

AND IT MIGHT NOT BE THE AIRCRAFT THEY WERE HOPING FOR.

CHINESE AVIATION IS A GROWING MARKET BUT THIS WAS NOT AS GOOD

OF A SALE AS THEY WANTED AND YOU HAVE SEEN THAT REFLECTED IN

THE PRICE. CAROLINE:

BOEING HAS MANAGED TO GET AN ORDER FOR 200 AIRCRAFT.

WE DON'T KNOW WHETHER THEY ARE THE 737 MAX.

THERE WERE 500 BEING SPOKEN OF. THIS COMPANY HAS SOLD LESS THAN

40 AIRCRAFT IN THE LAST DECADE TO CHINA.

THIS IS BECAUSE THERE IS THIS ONGOING TIT-FOR-TAT THAT CHINA

WANTS TO START BUILDING ITS OWN AIRCRAFT.

TO DO THAT THEY NEED ENGINES AND OTHER PARTS OF THE SUPPLY

CHAIN TO COME FROM THE UNITED STATES.

UNTIL THEY GET ACCESS TO SOME OF THOSE IMPORTANT PARTS, THEY

ARE LIMITING THEIR PURCHASE OF BOEINGS.

THE HOPE HAD BEEN AS FAR BACK AS A YEAR AGO THAT THEY WOULD

GET A 500 ORDER. WE UNDERSTAND IT IS 200

ACCORDING TO THE PRESIDENT BUT THE PRESIDENT WENT ON TO SAY

THAT MAYBE IT MIGHT GO UP TO 700.

WE ARE AGAIN LEFT WONDERING AS TO REALLY WHAT HAS BEEN AGREED

BUT IT DOES SEEM TO BE SOME SENSE THAT THEY ARE GAINING

MORE ACCESS TO THE CHINESE MARKET ONCE AGAIN.

IT CAN ONLY BE GOOD NEWS IF THE TWO LEADERS OF THESE COUNTRIES

ARE CONTINUING TO TALK. WE KNOW THAT XI JINPING IS DUE

TO COME TO THE UNITED STATES IN AUTUMN. CHRISTINA:

I WANT TO GO BACK TO WHAT YOU SAID.

THEY ARE GAINING MORE ACCESS TO THE CHINESE MARKET BECAUSE

OBVIOUSLY FOR THE PRESIDENT THAT IS HIS PREVAILING SELLING

POINT FOR A LOT OF THINGS IS WE ARE GOING TO BE SELLING

AMERICAN GOODS, BRINGING DOWN THE TRADE DEFICIT.

I WONDER IF FOR THE CEO'S WHO AS YOU POINTED OUT ARE GOING TO

TOW THE LINE UNTIL THEY GET OFF THE PLANE, THIS IS REALLY ABOUT

THAT A LITTLE BIT BUT MUCH MORE ABOUT TRYING TO PRESERVE THEIR

OWN SUPPLY CHAINS AND THEIR OWN ABILITY TO DO BUSINESS IN CHINA

FOR THE U.S. MARKET WHICH REALLY BOTH THESE

ECONOMIES ARE GEARED TOWARD DELIVERING. CAROLINE:

IT CANNOT BE UNDERSTATED THE DOMINANCE OF CHINA AND TAIWAN

WHICH IS OF COURSE THE KEY GEOPOLITICAL ELEPHANT IN THE

ROOM HERE FOR U.S. SUPPLY CHAIN. 90% OF ALL CHIPS OUT THERE ARE

MANUFACTURED IN TAIWAN. 90% OF ALL PROCESSING OF RARE

EARTHS HAPPENS IN CHINA. YOU CANNOT USE A SMARTPHONE.

YOU CANNOT HAVE A MAGNET THAT GOES INTO BASICALLY EVERY

CONSUMER ELECTRONICS DEVICE YOU HAVE EVER USED UNLESS WE HAVE

ACCESS TO THOSE RARE EARTH FROM CHINA.

YOU ARE SEEING MANUFACTURING IN THE UNITED STATES TRYING TO BE

BROUGHT ON SHORE AND MATERIALS, GETTING STAKES BEING BUILT BY

THE U.S. GOVERNMENT IN THAT COMPANY TO

BUILD UP THE ABILITY TO PROCESS IN THE U.S.

BUT IT IS GOING TO TAKE YEARS. FOR NOW CHINA AND TAIWAN

REMAINED A LINCHPIN IN THE SUPPLY CHAIN QUESTION AND THAT

IS THE LEVERAGE THAT CHINA KNOWS THAT IT HAS. CHRISTINA:

TALK ABOUT THAT, ESPECIALLY AT A TIME WHERE THESE MASSIVE

PROCESSING CHIPS ARE SO CRITICAL TO ALL OF THESE A.I.

COMPANIES AND EVERYTHING THAT THEY ARE TRYING TO DO.

THE LANGUAGE COMING OUT OF THE TAIWAN DEBATE WAS NOT REALLY

INDICATIVE OF A PRESIDENT THAT IS WILLING TO TAKE ON THAT

CONFLICT. WE HAVE VERY STRONG MESSAGING

FROM THE CHINESE SIDE THAT THEY SAID THAT THIS IS A REDLINE FOR

THEM.

WE HAD A STATEMENT BEFORE THAT MEETING HAPPENED MAKING IT

CLEAR THAT THEY HAD DELIVERED THAT MESSAGE AND NOT EQUAL

PUSHBACK FROM THE ADMINISTRATION.

ARE THESE BUSINESS LEADERS NERVOUS ABOUT THAT AND ARE THEY

SAYING THAT TO THE ADMINISTRATION WHEN CAMERAS ARE

NOT ON AND HOW BIG OF AN IMPACT COULD THAT HAVE ON

MANUFACTURING AND CHIPMAKING? CAROLINE:

THIS WILL SIGNIFICANTLY STIFLE A.I.

COMPUTE BUILDOUT IF WE DON'T REMAIN ACCESS TO TAIWAN.

YES, TSMC, THE KEY CHIP

FABRICATOR TO THE WORLD, TAIWAN SEMICONDUCTOR, IS BRINGING

MANUFACTURING POWERS HERE TO THE UNITED STATES IN ARIZONA.

THAT TAKES TIME AND TALENT AS WELL.

IT NEEDS TO BE BUILT HERE IN THE COUNTRY.

ON EVERY SINGLE TECH LEADER'S MIND AND EVERY CONSUMER'S MIND

HOW IMPORTANT THE RELATIONSHIP IS WITH TAIWAN AND WHAT CHINA

REALLY WANTS OUT OF TAIWAN AND WHAT SO-CALLED POTENTIAL

CLASHES THAT XI JINPING ARTICULATED MIGHT REALLY MEAN

IN THE LONGER TERM. WHEN PRESIDENT TRUMP SAID WE

REMAIN NEUTRAL, HE WAS ON FOX NEWS TALKING ABOUT THE FACT

THAT THEIR VIEW ON THE RELATIONSHIP WITH TAIWAN HAS

NOT CHANGED. BUT WHAT DOES THAT MEAN IN

TERMS OF POTENTIAL CHANGES COMING AFTER?

WE HAVE THE COFOUNDER OF

ADNRUIL AND HE SAYS THERE COULD BE A SIGNIFICANT WRAPPING

UP OF ESCALATION BETWEEN CHINA AND TAIWAN AND WHAT DOES THAT

MEAN FOR THE RELATIONSHIP WITH UNITED STATES.

THIS HAS TO BE SOMETHING THAT EXECUTIVES ARE TALKING ABOUT

BEHIND CLOSED DOORS. CHRISTINA: THE CISCO CEO DID NOT GET ON

THE PLANE WITH THE REST OF THE KIDS AND GO ON THE FUN FIELD

TRIP. THE COMPANY STOCK ACTUALLY SAW

A HUGE JUMP THIS WEEK PARTIALLY DUE TO A.I. AND SOME JOB CUTS.

DO YOU THINK SOME CISCO -- DO YOU THINK CISCO CAN COMPETE

WITH THESE HUGE A.I. NAMES THAT ARE FAMILIAR IN THAT

SPACE? CAROLINE: THERE WAS A MISTAKE THAT WAS

MADE. INITIALLY HE WAS GOING TO BE

GOING AND WE WERE ALL SCRATCHING OUR HEADS SO JENSEN

HUANG IS GOING BUT CHUCK IS NOT. HE ASKS OF TALKS WITH INVESTORS

TO BE HAVING. WE SAW THE BIGGEST MOVE UP IN

THE STOCK THAT WE HAVE SEEN IN DECADES.

ONE DAVE LIMP INTRA-DAY HIGH

17% MOVE -- ONE DAY AN INTRA-DAY HIGH 17% MOVE.

HE HAS A GROWING PART OF THE BUSINESS ALL ABOUT

CYBERSECURITY. THIS GOVERNANCE OF ALL THESE

A.I. AGENTS THAT PEOPLE ARE SPITTING

UP WITH WHATEVER THEY ARE DOING AT HOME BUT MORE BROADLY AGENTS

ARE BECOMING A REALLY IMPACT TO THE WORKFORCE.

WE NEED TO BE ABLE TO ENSURE THAT THAT IS SAFE SO THIS IS

THE NEW ERA OF CISCO, THEY ARE LEANING INTO PRODUCING THEIR

OWN SILICONE THAT WILL GO INTO THOSE DATA CENTERS FOR THE

NETWORKING THAT THEY ARE BUILDING OUT BUT IT MEANS THEY

HAVE TO REALLOCATE RESOURCES. 4000 JOBS COULD GO, 85 PERCENT

OF THE BUSINESS. THESE ARE HUMANS, JOBS AND

LIVELIHOODS. IT IS HAPPENING MORE AND MORE

AT THE MOMENT IN TERMS OF A.I. VERSUS LABOR AND HAVING TO

REDEPLOY INVESTMENT TRYING TO WIN THE CASE THAT THEY ARE THE

FUTURE OF A.I., A STORIED COMPANY THAT CAN WIN IN THIS

CURRENT ERA OF COMPLETE DISRUPTION. DAVID:

CAROLINE HYDE OF BLOOMBERG TECHNOLOGY WITH AN UPDATE.

THOSE TECH EXECUTIVES GOING TO BEIJING.

KEVIN WARSH HAS BEEN CONFIRMED AS THE NEXT CHAIR BUT JEROME

POWELL IS NOT GOING ANYWHERE. WE HAVE MICHAEL MCKEE WITH WHAT

IS NEXT FOR THE FED COMING UP ON "BLOOMBERG THIS WEEKEND." ♪

LISA: LET'S GET YOU UP-TO-DATE ON

TODAY'S TOP STORIES. THE SUPREME COURT HAS REJECTED

A BID BY VIRGINIA DEMOCRATS TO REVIVE A VOTER APPROVED MAP

DESIGNED TO FLIP REPUBLICAN APPROVED HOUSE SEATS.

THE VIRGINIA SUPREME COURT DECIDED THAT THE MAP WAS

ADOPTED AS A VIOLATION TO THE CONSTITUTION.

THE RULING IS A SETBACK TO THE DEMOCRATIC HOPES OF COUNTERING

REPUBLICAN REDISTRICTING AHEAD OF THE MIDTERMS. THOUSANDS WILL

GATHER IN MONTGOMERY, ALABAMA TODAY IN SUPPORT FOR VOTING

RIGHTS. JARED POLIS HAS REDUCED THE

STATE PRISON SENTENCE OF TINA PETERS ALLOWING HER TO BE

ELIGIBLE FOR PAROLE ON JUNE 1. SHE IS A FORMER COUNTY CLERK

CONVICTED OF TAMPERING WITH ELECTION EQUIPMENT AND HAD BEEN

SERVING A NINE YEAR PRISON SENTENCE. THE DECISION FOLLOWS A

MONTH-LONG PRESSURE CAMPAIGN FROM PRESIDENT TRUMP.

MULTIPLE OUTLETS FOR REPORTING THAT THE U.S.

COULD ANNOUNCE A POSSIBLE CRIMINAL INDICTMENT OF THE

FORMER CUBAN PRESIDENT IN THE COMING DAYS.

THE INVESTIGATION IS AROUND THE 1996 SHOOT DOWN OF PLANES THAT

WERE OPERATED BY A HUMANITARIAN GROUP CALLED BROTHERS TO THE

RESCUE. PRESIDENT TRUMP IS EXPECTED TO

DROP HIS LAWSUIT AGAINST THE IRS. ABC SAYS IT WOULD BE IN

EXCHANGE FOR THE CREATION OF A $1.7 BILLION FUND TO COMPENSATE

ALLIES WHO COMPLAINED THAT THEY WERE WRONGFULLY TARGETED BY THE

BIDEN ADMINISTRATION. DAVID: THANK YOU VERY MUCH.

HEADLINES CROSSING THE TERMINAL ABOUT THE SUMMIT WILL BE

WAITING FOR INDICATIONS ABOUT WHAT DEALS MIGHT HAVE BEEN

AGREED TO. CHRISTINA: ACTUAL DELIVERABLES. DAVID:

IT SEEMS LIKE WE ARE GETTING HEADLIGHTS RIGHT NOW BUT CHINA

AT REDUCED TARIFFS ON A CERTAIN RANGE OF PRODUCTS AND THE U.S.

AND CHINA HAVE REACHED ARRANGEMENTS ON BUYING U.S.

PLANES. THIS IS SOMETHING WE WERE

TALKING ABOUT JUST A FEW MINUTES AGO, A CERTAIN NUMBER

OF PLANES FROM BOEING. UNDERWHELMING THE MARKET.

CHRISTINA: STILL WAITING FOR SPECIFICS TO

BUY MORE SOY THAT IS VERY IMPORTANT TO THOSE FARMERS.

NO SPECIFICS ON THAT YET. A COUPLE OF OTHER THINGS THE

PRESIDENT TALKED ABOUT ON FOX THAT WE NEED TO SEE DETAILS.

WE WILL WATCH FOR THAT THROUGHOUT THE MORNING. DAVID:

THE FEDERAL RESERVE NAMED JEROME POWELL THE INTERIM

SUCCESSOR UNTIL KEVIN WARSH IS SWORN IN. CHRISTINA:

JAY POWELL HAS VOWED TO STAY ON AS GOVERNOR, A RARE MOVE THAT

HAS DENIED PRESIDENT TRUMP A MAJORITY ON THE BOARD.

WE TALKED TO MICHAEL MCKEE ABOUT THE REASONS FOR THE DELAY

IN GETTING KEVIN WARSH INSTALLED. MIKE:

PRESIDENT TRUMP SIGNED A COMMISSION FOR HIM AND THAT

MAKES HIM OFFICIALLY ABLE TO BE SWORN IN.

THE PRESIDENT HAS BEEN IN CHINA SO IT HAS BEEN PUT OFF FOR A

FEW DAYS. IT DOES NOT REALLY MATTER.

JAY POWELL IS STILL THERE IF THE WORLD SHOULD COME TO AN END

AND THEY NEED TO PUT QE IN FOR A FEW HOURS BEFORE WE

DISINTEGRATE. KEVIN WARSH COULD BE SWORN IN

THIS WEEKEND OR MONDAY. BASICALLY IT IS A DONE DEAL.

WE ARE JUST WAITING FOR THE CEREMONIAL ASPECT. CHRISTINA:

THIS IS A PRESIDENT WHO LIKES TO SIGN THINGS.

HE DOES NOT LIKE THE AUTO PEN. OTHER KEY HOUSES WOULD'VE HAD

THAT DONE REMOTELY. WHAT HAPPENS WHEN WARSH BECOMES

CHAIR AND HOW LONG DO YOU THINK HE WILL STAY?

HE SAYS HE WILL STAY UNTIL THIS INVESTIGATION DOES NOT COME

BACK. DOES HE EVER HAVE A GUARANTEE

THAT IS THE CASE? MIKE: HE CAN STAY UNTIL JANUARY 31 OF

2028. THAT IS THE END OF HIS TERM AS

A FED GOVERNOR. DOES HE WANT TO STAY THAT LONG,

NO. BUT DOES HE TRUST THE DEPARTMENT OF JUSTICE? NO.

SO HE WANTS TO MAKE SURE THAT WHEN THE INSPECTOR GENERALS

REPORT COMES OUT, EVEN IF HE IS CLEARED, THAT THE JUSTICE

DEPARTMENT IS NOT GOING TO FIND A PRETEXT AS THEY SEEM TO HAVE

DONE WITH JAMES COMEY TO TRY TO

BRING HIM BACK INTO THE LEGAL MESS.

HE WANTS TO STAY THERE BECAUSE IT GIVES THEM LEVERAGE OVER THE

PRESIDENT DONALD TRUMP WANTS THEM OUT AND HE IS NOT GOING TO

LEAVE UNLESS HE HAS NO GUARANTEE THAT DONALD TRUMP IS

NOT GOING TO PUT HIM IN JAIL. UNTIL THAT IS SETTLED, HE IS

STILL GOING TO BE THERE. CHRISTINA:

THEY DID MOVE A LITTLE BIT AND SAYING FOR NOW THEY HAVE

CONCLUDED THIS INVESTIGATION THAT ALLOWED JAY POWELL TO STEP

DOWN BUT ARE YOU SENSING ANY MOVEMENT ON SOLIDIFYING THAT

INTO SOMETHING THAT WOULD BE ACCEPTABLE TO JAY POWELL TO

FEEL LIKE HE HAS A GUARANTEE TO STEP AWAY?

WHAT WOULD THAT LOOK LIKE, AN IMMUNITY PROMISE? MIKE:

IT COULD BE SOMETHING LIKE AN IMMUNITY PROMISE OR THE JUSTICE

DEPARTMENT DROPS ALL INVESTIGATIONS WITH WHAT THEY

CALL PREJUDICE WHICH MEANS THEY CANNOT VIOLATE.

WHAT WE HAVE HEARD FROM JANINE CARROLL, THE U.S.

ATTORNEY IN WASHINGTON, D.C. IS THAT SHE IS NOT GIVING UP.

THE PRESIDENT HAS SAID WE WILL SEE WHERE THIS GOES.

NOBODY IS SAYING IT IS OVER. AND THAT IS WHAT THEY NEED TO

DO TO GET JAY POWELL TO LEAVE. CHRISTINA:

SO YOU HAVE STEPHEN MIRAN WHO EITHER RESIGNED OR DID NOT

RESIGN, WE WILL COME BACK TO THAT.

BUT HE HAD SOME INTERESTING THINGS TO SAY ABOUT MAKING ROOM

FOR KEVIN WARSH TO ALL IN HIS TENURE WITHOUT JAY POWELL --

YOU CANNOT HAVE TWO LEADERS IN CHARGE. LET'S LISTEN.

>> TRANSITIONS ARE IMPORTANT AND I THINK THAT IT IS HELPFUL

TO HAVE SOMEONE THERE TO GIVE ADVICE BUT I STILL THINK IT IS

IMPORTANT THAT IT IS A TRANSITION BECAUSE YOU WANT

LOYALTIES UNDIVIDED AND YOU WANT THERE TO BE ONE CHAIRMAN

AND YOU WANT TO HAVE A PLACE WHERE THERE IS NO QUESTION

ABOUT WHO IS IN CHARGE AND THERE IS NO TALK OF RIVAL

FACTIONS AND THINGS BEING SPLIT. CHRISTINA:

WHAT IS YOUR TAKE ON THAT? THERE DOES NOT SEEM TO BE A

REAL QUESTION OF WHO IS IN CHARGE BUT THERE COULD BE RIVAL

FACTIONS AND A SHADOW GOVERNMENT DEPENDING ON HOW

PEOPLE FEEL. IS THERE A RISK WITH HIM

STICKING AROUND? MIKE: THERE IS DEFINITELY A RISK.

JAY POWELL HAS BEEN CHAIR FOR EIGHT YEARS AND HAS BEEN ON THE

FED SINCE 2012. EVERYONE KNOWS HIM AND HAS

WORKED WITH HIM. YOU COULD SEE RIVAL POWER

CENTERS IF JAY POWELL WANTED TO PUSH THAT BUT JAY POWELL HAS

MADE IT CLEAR HE IS NOT GOING TO DO THAT.

HE IS GOING TO BE AS LOW-KEY AS POSSIBLE.

I WOULD BE SURPRISED IF HE EVEN MAKES A SPEECH BECAUSE THERE IS

NOTHING TO BE GAINED FROM THAT. HE COULD MAKE HIS VIEWS KNOWN

AT THE FED MEETINGS BUT IF HE STARTS SPEAKING OUT AND IF

THERE IS ANY DISTANCE BETWEEN HIM AND KEVIN WARSH, PEOPLE

WILL SAY WHICH ONE REALLY HAS THE INFLUENCE ON THE OPEN

MARKET COMMITTEE.

I DO NOT THINK JAY POWELL WANTS TO GET INTO THAT KIND OF

SITUATION BECAUSE HE IS SUCH AN INSTITUTIONALIST, THAT WOULD BE

BAD FOR THE FED. CHRISTINA: HE DOES SEEM TO WANT TO PROTECT

THE INSTITUTION. CAN HE BE HELPFUL TO THE

TRANSITION AND DO YOU THINK HE WILL HELP HIM? MIKE:

I THINK HE CAN BE. IT IS A LITTLE BIT LESS THAN

SOME PREVIOUS TRANSITIONS BECAUSE KEVIN WARSH HAS BEEN ON

THE FED BEFORE BUT THAT WAS 15 YEARS AGO.

HE CAN STEER HIM THROUGH SOME OF THE NEW THINGS.

I WOULD BE SURPRISED IF KEVIN WARSH GETS INVOLVED AT ALL IN

THE PUBLIC ASPECTS OF THIS BUILDING INVESTIGATION.

BUT AS THE CHAIR OF THE BOARD OF GOVERNORS HE NEEDS TO KNOW

ABOUT IT. POWELL CAN WALK THEM THROUGH

ALL OF THAT. BASICALLY THEY HAVE MODERNIZED

AND REMODELED THE FED BUILDING SINCE HE WAS THERE LAST SO HE

CAN SHOW HIM WHERE THE BATHROOM IS. CHRISTINA: THAT'S HELPFUL.

EVERYONE WORKING TOGETHER. I WANT TO TALK WITH YOU ABOUT

MONETARY POLICY BECAUSE WE GOT CPI AND PPI FOR APRIL SHOWING

INFLATION IS STILL STUBBORNLY HIGH. IT IS ABOUT THE FED'S 2%

TARGET. DOES THIS ADD MORE PRESSURE FOR

A RATE CUT NEXT MONTH? MIKE: NO. IT TAKES THE PRESSURE OFF.

IT PUTS OFF A RATE CUT FOR QUITE SOME TIME BECAUSE

ANALYSTS HAVE BEEN SAYING ON FRIDAY THE MARKET STARTED TO

BELIEVE THEM THAT THIS IS GOING TO BE THE CASE THAT WE ARE

GOING TO SEE HIGHER FOR LONGER INFLATION.

THE GULF IS STILL CLOSED, THE STRAIT OF HORMUZ IS STILL

CLOSED. WHAT THEY SAY IS EVEN IF IT

OPENED TODAY, IT WOULD TAKE A MONTH OR MORE TO GET OIL BACK

INTO THE PIPELINES AROUND THE WORLD. WE ARE GOING TO SEE THESE

PRICES MAINTAINED. AND THERE IS NO WAY THAT

MEMBERS OF THE OPEN MARKET COMMITTEE AND NO WAY THE

MARKETS WOULD PERMIT YOU TO START CUTTING RATES NOW.

SO THE BEST THAT KEVIN WARSH CAN DO IS KEEP THINGS WHERE

THEY ARE AND NOT CUT RATES OR RAISE RATES.

THERE IS A CASE BUILDING IN THE FUTURES MARKETS THAT THEY

SHOULD RAISE RATES. BUT THAT WOULD NOT DO ANY GOOD.

CHRISTINA: THE PRESIDENT WOULD NOT ENJOY

THAT. MIKE: RAISING RATES WOULD NOT OPEN

THE STRAIT OF HORMUZ. AT THIS POINT THEY ARE STUCK.

CHRISTINA: INFLATION IS NOW OUTPACING WAGE

GROWTH. WHAT DOES THAT MEAN FOR CONSUMERS IN THE ECONOMY AS A

WHOLE? WE KEEP BEING TOLD IS OK. IS THAT STARTING TO SHAKE

CONFIDENCE SLIGHTLY? MIKE: IT CERTAINLY IS STARTING TO

SHAKE CONFIDENCE AT THE LOWER LEVELS, THE WHOLE K-SHAPED

ECONOMY. CHRISTINA: THE FAVORITE PHRASE, EVERYBODY

DRINK. MIKE: IT WAS SAID THAT THIS IS A REAL

THING.

PEOPLE AT THE LOWER ENDS ARE SUBSTITUTING THE OLD ECONOMIC

CHOICE AND CUTTING BACK ON WHAT THEY SPEND SO PEOPLE ARE PAYING

MORE FOR GASOLINE NOW. IT IS GETTING TOUGHER AND

TOUGHER. WE SAW THE SAVINGS RATE DECLINE

IN THE LAST MONTH. WE HAVE SEEN CREDIT CARD USAGE

DROP OFF A LITTLE BIT.

IT IS STARTING TO SEEP INTO THE ECONOMY AND IT MAKES PEOPLE

FEEL WORSE. IT HAS NOT SHOWN UP SPECIFICALLY IN A LOT OF THE

CONSUMPTION FIGURES YET. THE CONSUMPTION DATA THAT WE

GET. BUT IT IS SHOWING UP IN THE POLLS.

NOT JUST AN ECONOMIC PROBLEM TO COME, IT IS A POLITICAL PROBLEM

FOR THE PRESIDENT RIGHT NOW. CHRISTINA:

WE HAVE TO LET YOU GO BUT BEFORE WE DO, WHEN YOU WATCH

THE INDICATORS, IS THERE ONE THAT YOU LOOK AT SPECIFICALLY

THAT YOU THINK ALL THE OTHER THINGS WILL START TO SEE SIGNS

OF TROUBLE? MIKE: THE INFLATION NUMBERS ARE RED

LIGHTS RIGHT NOW LOOKING DOWN THE ROAD YOU WANT TO KEEP AN

EYE ON JOBLESS CLAIMS BECAUSE IF THEY START TO GO UP, THEY

WILL GO UP QUICKLY BECAUSE ALL THE COMPANIES WILL HAVE DECIDED

THAT WE WILL LAY PEOPLE OFF NOW BECAUSE DEMAND HAS FALLEN.

YOU CAN TRACK THAT AT THE SAME TIME BY LOOKING AT THE

CONSUMPTION INDICATORS. RETAIL SALES, THE SPENDING

REPORT AND ALL OF THE CREDIT CARD COMPANIES PUT OUT DATA ON

WHETHER PEOPLE ARE SPENDING MORE OR LESS ON THEIR CARDS

DURING A MONTH. WATCH THE CONSUMER AND WHETHER

THEY STILL HAVE JOBS AND IF WE SEE SOME SIGNS OF CUTTING BACK,

THEN YOU KNOW YOU'VE GOT A REAL PROBLEM. CHRISTINA:

THANK YOU SO MUCH. DAVID:

CHATTING -- TRAVELING WITH THE PRESIDENT SUITE IN CHINA WAS

JAMIESON GREER. HE TOLD BLOOMBERG NEWS THAT

CHINA'S EXPORTS OF RARE EARTHS WERE IMPROVING BUT THERE ARE

STILL DELAYS. ERRORS ARE THE BACKBONE OF

MODERN TECH. AS ANGUS BENNETT EXPLAINS,

CHINA HAS CORNERED THE GLOBAL MARKET.

>> IT DOES NOT LOOK LIKE MUCH BUT THIS IS THE PRIZE FOR THE

REST OF THE WORLD IN TRYING TO CATCH UP WITH CHINA.

>> WE NEED RARE EARTHS.

>> CHINA OWNS THEM, PROCESSES THEM, REFINES THEM AND SELLS

THEM. THE ENTIRE SUPPLY CHAIN IS BUILT AROUND BEIJING.

>> NO MATTER WHAT YOU DO YOU ARE BEHOLDEN TO CHINA.

>> RARE EARTHS ARE THE BACKBONE OF MODERN TECHNOLOGY.

>> CHINA IS THE BALLGAME. THEY ARE 80% TO 90% OF

PRODUCTION AND PROCESSING OF RARE EARTHS THAT GO INTO ALL

THE EQUIPMENT AROUND THE WORLD.

>> CHINA HAS SHOWN IT WILL USE THAT DOMINANCE AS GEOPOLITICAL

LEVERAGE.

>> THE USE OF RARE EARTHS IN THESE POWERFUL MAGNETS.

>> CHINA'S CAPACITY FOR MAGNETS IS VAST COMPARED TO THE WORLD.

>> ONE DONALD TRUMP REBOOTED THE U.S.-CHINA TRADE WAR, CHINA

RESPONDED WITH EXPORT CONTROLS ON RARE EARTH THAT EXPOSED JUST

HOW MUCH WESTERN MANUFACTURING STILL DEPENDS ON CHINA'S SUPPLY.

>> THE AUTOMOTIVE INDUSTRY CAME OUT AND NOT SO QUIETLY SAID WE

WILL HAVE TO SHUT DOWN THE FACTORIES IF WE CANNOT GET

THESE PERMANENT MAGNETS.

>> THAT SHOCK SPARKED A SCRAMBLE TO BUILD A NEW SUPPLY

CHAIN.

>> THIS IS A STORY ABOUT NOT LETTING ONE COUNTRY HOLD ALL

THE CHIPS ON WHAT IS A VERY IMPORTANT SUPPLY CHAIN.

CHRISTINA: WATCH THE WHOLE DOCUMENTARY AT

BLOOMBERG.COM AND ON YOUTUBE. THE WAR IN IRAN HAS CRIPPLED

OIL SUPPLIES AND NOW IT COULD IMPACT HOW MUCH YOU PAY TO GET

YOUR OIL CHANGED. NEXT, WE WILL TALK ABOUT NEW

CONCERNS FOR DRIVERS. DAVID: WE WILL CONTINUE TO LOOK AT THE

HEADLINES ABOUT WHAT DEALS ARE BEING ANNOUNCED ON THE HEELS OF

THE SUMMIT BETWEEN PRESIDENT TRUMP AND XI JINPING.

SOME INDICATIONS OF DEALS ON AGRICULTURE AND OTHER PRODUCTS.

WE ARE SEEING THAT CHINA WILL PROMOTE THE EXPORT OF POULTRY

FROM SOME STATES TO CHINA. STAY WITH US.

LISA: LET'S UPDATE YOU ON TODAY'S TOP

STORIES.

YOUTUBE AND SNAP HAVE REACHED AGREEMENT TO SETTLE A LAWSUIT

FROM A KENTUCKY SCHOOL DISTRICT THAT CLAIMS THAT ADDICTION TO

THE SOCIAL MEDIA PLATFORMS HAS DISRUPTED LEARNING AND PUSHED

PUBLIC SCHOOLS THAT HAVE SPENT A MASSIVE AMOUNT OF MONEY

FIGHTING A MENTAL HEALTH CRISIS. THE CASE WAS SET TO GO TO TRIAL

IN OAKLAND, CALIFORNIA. ELON MUSK IS NOT SELLING ANY

SPACEX SHARES IN RESPONSE TO A USER POST THAT SUGGESTED HE DO

SO. IT COMES AS SOURCES TELL BLOOMBERG THE COMPANY IS

LOOKING TO FILE PUBLICLY FOR ITS LONG-AWAITED IPO AS SOON AS

WEDNESDAY.

REUTERS IS REPORTING THAT SPACEX HIS PICK NASDAQ.

THE SAN ANTONIO SPURS ADVANCE OF THE WESTERN CONFERENCE

FINALS AFTER BEATING THE MINNESOTA TIMBERWOLVES AND THEY

WAIT FOR THEIR NEXT OPPONENT. THAT IS DRAGGING ON BECAUSE THE

DETROIT PISTONS FORCED A GAME SEVEN BEATING THE CLEVELAND

CAVALIERS. THE CHAMPIONSHIP CONTINUES IN

PENNSYLVANIA FOR THE PGA.

FOR OUR LISTENERS ON BLOOMBERG RADIO, CATCH THE COVERS TODAY

AND TOMORROW STARTING AT 2:00 P.M. EASTERN.

TONIGHT THE PREAKNESS GETS UNDERWAY AT A NEW LOCATION IN

MARYLAND.

THE RUNNING FOR THE RACE IS KENTUCKY DERBY WINNER GOLDEN

TEMPO.

HE JUST NEEDS A LITTLE REST. IT IS A QUICK TURN AROUND. DAVID:

I DID NOT KNOW THAT THEY WERE MOVING THE PREAKNESS.

DID YOU KNOW, HAVE YOU BEEN THERE? CHRISTINA:

I HAVE NEVER BEEN THERE. DAVID: IT IS ALWAYS A MESSY TIME .

CHRISTINA: IT IS USUALLY RAINY AND WET BUT

A GOOD EXCUSE TO WEAR A HAT. THANKS, LISETTE.

WITH THE STRAIT OF HORMUZ STILL SHUT AND GLOBAL OIL SUPPLY

STUNTED, THE PUMP MIGHT BE THE ONLY PLACE CONSUMERS WILL

EXPERIENCE SUPPLY CHAIN PAIN. THE CONFLICT IS DISRUPTING

SHIPMENTS OF MOTOR OIL. AUTOMAKERS AND DEALERS ARE

WARNING IT COULD BE HARDER TO GET CERTAIN SYNTHETIC OILS THAT

ARE USED IN NEWER CARS. DAVID: SOME SHOPS SAY CUSTOMERS COULD

SEE HIGHER PRICES IF THEY CAN KEEP THE PRODUCT ON THE SHELVES.

JOINING IS THE CEO OF THE INDEPENDENT LUBRICANT

MANUFACTURERS ASSOCIATION HOLLY ALFANO.

GREAT TO HAVE YOU WITH US. CHRISTINA HAS A LOT OF

QUESTIONS ABOUT WHETHER SHE CAN GET HER OIL CHANGED IN HER MINI

COOPER.

LET'S TALK ABOUT INDUSTRIAL LUBRICANTS.

WE ARE DEALING WITH GROUP THREE BASE STOCKS.

WHAT ARE THEY AND WHY ARE THEY SO CRITICAL AND WHY HAVE THEY

GOTTEN SO DIFFICULT TO GET? HOLLY:

GROUP THREE BASE STOCKS ARE THE

OILS USED TO MAKE THE LUBRICANTS FOR THE INTERNAL

COMBUSTION ENGINE. TODAY'S VEHICLES REQUIRE GROUP

THREE BASE STOCKS AND IT IS A FORMULATION OF 75 TO 98% OF

BASE OIL TO ADDITIVE. AS YOU CAN SEE WITHOUT BASE

STOCKS WE CANNOT MAKE THE LUBRICANTS FOR VEHICLES.

CHRISTINA: WHAT ARE WE MORE WORRIED ABOUT?

HIGHER PRICES OR SHORTAGES? HOLLY: REALLY BOTH.

WE HAVE ALREADY SEEN PRICE INCREASES ON BASE OILS.

FORTUNATELY THAT NORMALLY GETS PASSED ONTO CONSUMERS.

WHAT'S GOING ON ACTUALLY IS THAT ONE OF THE WORLD'S LARGEST

SUPPLIERS OF GROUP THREE WAS HIT BY AN IRANIAN MISSILE ABOUT

TWO OR THREE MONTHS AGO SHORTLY AFTER THE WAR STARTED.

AND THAT FACILITY IS GOING TO BE OFF-LINE FOR THE NEXT 12 TO

18 MONTHS. CHRISTINA: IS THAT THE FACILITY IN QATAR

OR A DIFFERENT ONE? HOLLY: CORRECT, THE ONE IN QATAR.

44% OF IT COMES FROM THE MIDDLE EAST. WE ALWAYS HEAR THAT

AMERICA IS ENERGY INDEPENDENT BUT UNFORTUNATELY NOT WHEN IT

COMES TO LUBRICANTS. WE RELY ON PRODUCTS FROM ALL

OVER THE WORLD. DAVID: YOU HAVEDAVID:

RAISED THIS CONCERN WITH THE GOVERNMENT.

THEY HAD A MEETING WITH ENERGY DEPARTMENT OFFICIALS AND YOU

CHARACTERIZED IT AS PRODUCTIVE AND SOBERING. WHAT IS THE TRUMP

ADMINISTRATION PREPARED TO DO TO MAKE THIS LESS OF A

DIFFICULTY FOR AMERICANS AS THE WAR CONTINUES? HOLLY:

THE CONCERNS ARE BEING TAKEN VERY SERIOUSLY.

THEY ARE ELEVATING THE ISSUE WITHIN THE DEPARTMENT.

WE HAVE HAD NUMEROUS DISCUSSIONS WITH THEM IN RECENT

WEEKS AND I THINK THEY ARE DOING EVERYTHING THEY CAN.

UNFORTUNATELY THERE IS NO EASY ANSWER TO THIS SITUATION.

NOT ONLY IS GROUP THREE CONSTRAINED BUT WE ARE SEEING

OTHER ISSUES WITH DIFFERENT TYPES OF BASE OILS THAT COULD

BE SUBSTITUTIONS.

THE WHOLE OIL MARKET WHEN IT COMES TO LUBRICANTS HAS BEEN

DISRUPTED.

NORMALLY WE MIGHT GO TO SOUTH KOREA FOR GROUP THREE BUT SOUTH

KOREA RELIES ON CRUDE FROM THE MIDDLE EAST AND THEY CANNOT GET

IT.

GROUP TWO COULD BE DIVERTED TO MAKE MOTOR OILS BUT RIGHT NOW

THAT IS IN SHORT SUPPLY BECAUSE THE BASE STOCKS FOR THAT IS

BEING DIVERTED FOR DIESEL FUEL PRODUCTION. CHRISTINA:

WHAT DO YOU RECOMMEND? SHOULD PEOPLE GET THEIR OIL

CHANGED NOW? SHOULD PEOPLE STAY ON THEIR

REGULAR SCHEDULE? IS IT GET IT BEFORE IT'S GONE?

IF THE OIL LIGHT GOES ON, WHAT IS THE BEST COURSE OF ACTION?

HOLLY: I THINK PEOPLE SHOULD NOT PANIC. THEY SHOULD GET THEIR OIL

CHANGED AT THE APPROPRIATE TIME WHEN IT IS RECOMMENDED.

AND MAKE SURE THAT YOU USE THE RIGHT PRODUCT FOR YOUR VEHICLE.

LOOK AT THE MANUFACTURERS MANUAL AND USE THE RIGHT

PRODUCT THAT IS RECOMMENDED. THIS WILL BE CORRECTED AT SOME

POINT. IT IS NOT GOING TO BE QUICK.

BUT WE ARE DOING EVERYTHING WE CAN TO MAKE SURE THAT THERE IS

ADEQUATE SUPPLY AND WE ARE WORKING WITH THE ADDITIVE

COMPANIES AND THE BASE OIL SUPPLIERS.

HOPEFULLY CONSUMERS WILL BE ABLE TO FIND THE PRODUCT THAT

THEY NEED. IT MIGHT COST A LITTLE BIT MORE.

DAVID: THE LAST TIME I GOT MY OLD

CHANGED, YOU GET THE QUESTION EACH TIME, REGULAR OR SYNTHETIC.

IT MAKES ME WONDER ABOUT THE CONTEXT.

IS THAT THE SOLUTION, ARE WE SEEING A MOVEMENT TOWARD

INVESTMENT IN LOOKING AT NEW ALTERNATIVE TO TRADITIONAL

LUBRICANTS? WHERE ARE WE IN MOVING BEYOND

LUBRICANTS THAT DEPEND ON THESE ELEMENTS FROM THE MIDDLE EAST?

HOLLY: THERE IS NO SUPPLY COMING ONLINE IN THE U.S.

-- THERE IS NEW SUPPLY COMING ONLINE IN THE U.S.

THERE IS A CHEVRON FACILITY AND THE EXXON FACILITY, THEY ARE

BOTH ADDING GROUP THREE CAPACITY.

THAT WILL BE ONLINE HOPEFULLY TOWARD THE END OF NEXT YEAR OR

SO. WE HAVE ASKED DOE TO LOOK AT WORKING WITH THEM A LITTLE BIT

MORE TO SEE IF THEY CAN EXPEDITE THE CONSTRUCTION OF

THOSE FACILITIES. IF THERE IS ANYTHING TO EASE

PERMITTING TO GET THEM ONLINE SOONER.

THERE IS NO CAPACITY COMING ONLINE.

IT IS JUST GOING TO BE A MATTER OF TIME. CHRISTINA:

IS THERE A SPECIFIC BRAND OR SPECIFIC TYPE OF ENGINE THAT IS

GOING TO BE THE FIRST HIT? I KNOW THERE ARE DIFFERENT

CATEGORIES AND DIFFERENT AMOUNTS OF ADDITIVES TO SOME OF

THESE PREMIUM OILS. I ALWAYS GET YELLED AT BY USING

THE CHEAPEST VERSIONS WHICH IS NOT ALWAYS THE BEST. WHERE WILL

WE SEE THE SHORTAGES FIRST? HOLLY:

TODAY THE MODERN VEHICLE RELIES ON FORMULATIONS THAT ARE MADE

WITH GROUP THREE BUT THERE ARE SOME WAYS THAT THE LUBRICANT

MANUFACTURERS CAN WORK WITH THEIR ADDITIVE SUPPLIERS TO

MEET THE API AND OTHER SPECIFICATIONS.

WE ARE ACTIVELY WORKING AND OUR MEMBERS ARE WORKING ON THAT.

THE MAIN THING IS USE THE OIL THAT IS RECOMMENDED BY THE

MANUFACTURER. YOUR CAR WILL RUN BETTER OR

LONGER AND BE MORE RELIABLE IN THE LONG TERM.

IT'S A MAJOR INVESTMENT SO YOU WANT TO TAKE CARE OF IT. DAVID:

APPRECIATE THE TIME. THAT IS HOLLY ALFANO, THE

INDEPENDENT LUBRICANT MANUFACTURERS ASSOCIATION

TALKING ABOUT THE DIFFICULTIES FACING US IN LIGHT OF FOCUSING

ON DIESEL GASOLINE AND NATURAL GAS. CHRISTINA:

WE ARE STARTING TO SEE SOME OF THE DOWNSTREAM EFFECTS.

IT IS STILL IN THE OIL AREA BUT THE MORE THIS GOES ON, SO MANY

THINGS WE DON'T THINK ABOUT, WE WILL SEE THIS IN MORE AND MORE

SECTORS. THIS IS ONE OF THE FIRST PLACES

WE ARE NOTICING IT. CHILDREN ARE GROWING UP IN THE

SOCIAL MEDIA AGE AND IT IS NORMALLY THEIR PARENTS WHO

DECIDE WHAT GETS UPLOADED. AN IMPORTANT DISCUSSION ABOUT

THE FUTURE OF INFLUENCER KIDS, NEXT. ♪

>> TIFFANY SMITH IS THE MAMA OMAGER.

>> IT SEEMED SO INNOCENT BUT IT WAS NOT INNOCENT AT ALL.

"BLOOMBERG THIS WEEKEND" SOME PICTURES FROM -- DAVID:

SOME PICTURES FROM THE SHOW "BAD INFLUENCING."

INFLUENCER KIDS AND THE COST OF A CHILDHOOD ONLINE.

THE EVOLUTION OF FAMILY INFLUENCING, THE AUTHOR FORTESA

LATIFI JOINS US NOW. GREAT TO HAVE YOU WITH US.

LET'S START FROM AN ECONOMIC ADVANTAGE.

THE GLOBAL INFLUENCER MARKET IS A $32.5 BILLION MARKET.

HOW MUCH IS THIS A FOCUS ON THE LIVES OF CHILDREN IN AMERICA

AND AROUND THE WORLD, A COMPONENT OF THAT?

WHAT KIND OF BUSINESS IS THIS? FORTESA:

THIS IS A MASSIVE BUSINESS. LIKE YOU SAID, INFLUENCING IS A

MULTIBILLION DOLLAR INDUSTRY AND THE TOP STRATA OF MOM

INFLUENCERS AND FAMILY BLOGGERS CAN MAKE MILLIONS OF DOLLARS

PER YEAR. CHRISTINA: THAT IS CRAZY TO ME BECAUSE

THEY ARE DIFFERENT SIDES OF THIS APPROACH.

I HAVE FRIENDS WHO WILL NOT PUT THEIR BABY'S FACE ON THE

INTERNET. THEY PUT THE STAR OVER THEIR

INFANT'S FACE. I LOVE YOUR CHILDREN BUT AT TWO

WEEKS OLD THEY ALL LOOK THE SAME.

YOU HAVE FRIENDS WHO WILL NOT PUT ANY IMAGES OF THEIR

CHILDREN ONLINE AND THEN YOU HAVE OTHER PEOPLE PUTTING EVERY

MOMENT OF THEIR CHILD ONLINE. ARE THERE ANY RULES OR LAWS

ABOUT HOW MUCH YOU CAN PUT OF YOUR CHILD ONLINE AND HOW MUCH

MONEY YOU MAKE FROM THEIR LIKENESS? FORTESA:

THERE ARE A FEW STATES THAT HAVE LAWS RELATED TO CHILD

INFLUENCERS ABOUT THE LAWS ARE MORE RELATED TO THE PROFITS OF

THE KIDS SO IT IS MORE LIKE IF YOU MAKE THIS PERCENTAGE OF

MONEY OFF OF THE KIDS, THEN YOU HAVE TO SAVE THIS PERCENTAGE

FOR A TRUST FUND FOR THEM FOR WHEN THEY TURN 18.

THERE IS NOTHING ABOUT WHAT YOU CAN AND CANNOT SHARE SO THERE

ARE NO PRIVACY PROTECTIONS PER SE. CHRISTINA:

THE OTHER PART ABOUT THAT IS HOW DO YOU DIVVY THAT UP

BECAUSE IF YOU ARE A FAMILY INFLUENCER, COULD YOU MAKE THE

ARGUMENT THAT THE POST IS ABOUT ME AND MY KID JUST HAPPENS TO

BE IN IT SO I DON'T HAVE TO SAVE THAT MONEY FOR THEM?

FORTESA: IT IS REALLY COMPLICATED TO

LEGISLATE THIS INFRASTRATE -- INDUSTRY AND IT ALSO HAPPENS IN

THE HOME. WHEN YOU TALK ABOUT KID ACTORS,

THEY ARE GOING TO A SET SO IT IS CLEAR THE DELINEATION

BETWEEN WORK AND HOME BUT FOR CHILD INFLUENCERS, THE PARENT

CAN SAY IS THIS REALLY WORK FOR THEM?

I AM JUST FILMING THEM AS THEY GO ABOUT THEIR DAILY WORK.

DAVID: AS YOU TALK TO FOLKS WHO DO

THIS, I AM CURIOUS ABOUT HOW THEY START OUT.

SOME OF THEM CAN MAKE MILLIONS OF DOLLARS.

HOW MANY OF THEM ARE MAKING THAT?

THERE IS LIKELY A DEGREE OF ASPIRATION THAT YOU CAN MAKE

MONEY BUT HOW OFTEN DOES THAT COME TO PASS?

HOW DO PEOPLE GET INTO DOING THIS? FORTESA:

IT IS HONESTLY WE ARE ALL PLAYING THE VIRAL LOTTERY EVERY

DAY IN AMERICA WHERE YOU ARE PUTTING UP CONTENT.

IF IT HITS, YOU CHASE THAT HIGH AND KEEP TRYING TO ACCOMPLISH

THAT AGAIN BUT IT IS PRETTY RARE TO GET UP INTO THAT TOP

STRATA BUT I THINK IT FEELS PRETTY DEMOCRATIC ANYWAY.

-- IN A WAY. LET'S SAY IN THE PAST IF YOU

WANTED TO BE A REALITY STAR, YOU HAD TO GET CAST. YOU HAD TO

GO THROUGH ALL OF THESE DIFFERENT THINGS OR IF YOU HAD

TO BE A CHILD ACTOR, YOU HAVE TO AUDITION FIRST. BUT THIS IS

LIKE IF YOU HAVE A PHONE, YOU HAVE A SHOT. CHRISTINA:

THAT IS GRATIFYING AND ALSO TERRIFYING.

WE TALK ABOUT KIDFLUENCERS AND THE ASSUMPTION IS THEIR

FOLLOWERS, ESPECIALLY IF IT IS A SOLO KID ACCOUNT, THE

FOLLOWERS ARE GOING TO BE OTHER KIDS BUT THAT IS LARGELY UNTRUE.

THE WALL STREET JOURNAL INVESTIGATED INTO THE FOLLOWERS

OF KIDFLUENCERS. THEY FOUND THAT FOLLOWERS ARE

OVERWHELMINGLY ADULT AND ADULT MEN. THE WALL STREET JOURNAL WHO

FOLLOWED ONE TEENAGE GIRL WHO STARTED OUT POSTING DANCE

PICTURES AND TO YOUR POINT, THEY WENT VIRAL AND HER

FOLLOWERS WERE 92% OF ADULT MEN. WHAT IS THE RISK FOR

EXPLOITATIONS? DO THESE PARENTS CARE AND DO

THEY CARE ENOUGH IN YOUR OPINION ABOUT THE RISKS

INVOLVED? FORTESA: THERE IS A REAL RISK AND WE

KNOW THAT BECAUSE OF SUCH INCREDIBLE REPORTING BY THE NEW

YORK TIMES AND THE WALL STREET JOURNAL OF PREDATORS WATCHING

THIS CONTENT. WHEN I TALK TO PARENTS THEY NOT

ONLY ACKNOWLEDGE THE RISK BUT THEY KNOW THAT IT IS A REALITY

BECAUSE THEY ARE GETTING MESSAGES, COMMENTS, EMAILS,

SOMETIMES LETTER IN THE MAIL WITH THIS PREDATORY INTENT.

YES, THEY ARE THINKING ABOUT IT. DO I THINK IT IS CHANGING THEIR

BEHAVIOR, NO. I WILL NEVER FORGET THIS

CONVERSATION I HAD WITH A MOTHER WHO HAD A SEVEN-YEAR-OLD

DAUGHTER WHO WAS IN DANCE COMPETITIONS AND SHE SAID THAT

SHE REALIZED THAT SHE GOT MORE OF THESE MESSAGES AND HER

VIDEOS GOT MORE SHARES WHEN HER DAUGHTER WAS IN THESE REVEALING

OUTFITS. I ASKED HER WHAT SHE DID WITH

THAT KNOWLEDGE. SHE SAID I ONLY SHARE IT A FEW

TIMES A YEAR NOW. THAT WAS DIFFICULT FOR ME TO

UNDERSTAND AS A PARENT IF YOU KNOW PEOPLE ARE LOOKING AT YOUR

CHILD WITH PREDATORY INTENT, THAT YOUR ANSWER IS NOT I AM

NOT GOING TO SHARE THIS ANYMORE BUT I WILL JUST DO IT A FEW

TIMES OF YEAR. DAVID: YOU TALKED ABOUT THE DIFFICULTY

OF REGULATING THIS FROM A LEGISLATIVE LEVEL.

WE HAVE SEEN THESE SOCIAL MEDIA TRIALS IN CALIFORNIA AND

ELSEWHERE. IS THAT LIKELY TO CHANGE WHAT

PARENTS ARE ALLOWED TO DO AND WHAT IS ALLOWED TO BE POSTED?

FORTESA: I DON'T THINK SO BECAUSE I

THINK IN THE UNITED STATES WE PRIZE PARENTAL RIGHTS ALMOST

ABOVE ANYTHING ELSE. IT IS REALLY DIFFICULT TO GO

INTO SOMEONE'S HOME AND SAY THIS IS NOT SOMETHING YOU CAN

DO WITH YOUR CHILD. PARENTS CONSENT TO ALL KINDS OF

THINGS THAT CHILDREN CANNOT CONSENT TO AND THIS IS AN

OUTGROWTH OF THE INHERENT NATURE OF THE PARENT-CHILD

RELATIONSHIP. DAVID: THAT IS FORTESA LATIFI, AUTHOR

OF THE BOOK "LIKE, FOLLOW, SUBSCRIBE, INFLUENCER KIDS AND

THE COST OF A LIFE ONLINE." ALSO AS YOU POINTED OUT, VERY

STARTLING AND SOBERING ASPECTS OF WHAT IS HAPPENING.

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

THE NEXT HOUR OF "BLOOMBERG THIS WEEKEND" STARTS RIGHT NOW.

DAVID: COMING UP ON "BLOOMBERG THIS

WEEKEND," PRESIDENT TRUMP BACK IN THE

WHITE HOUSE AFTER HIS TRIP TO CHINA.

>> WE HAVE GREAT RELATIONSHIPS AND A LOT OF THINGS HAVE

HAPPENED THAT YOU WILL BE HEARING ABOUT. DAVID:

WHAT HE'S SAYING ABOUT TAIWAN, CHIP MANUFACTURING AND AI.

CHRISTINA:

A TRUMP BACKED MAHA REPUBLICAN IS CHALLENGING THE CHAIR. DAVID:

WORKERS FOR THE LONG ISLAND RAILROAD ON STRIKE.

>> MAKE A DEAL THAT INCLUDES THE MTA'S BUDGET.

>> WHAT WORKERS ARE DEMANDING AS TRAINS HAVE STOPPED RUNNING

ON THE BUSIEST COMMUTER RAILROAD.

DAVID: WELCOME TO BLOOMBERG THIS WEEKEND.

WE ARE COMING TO YOU LIVE FROM BLOOMBERG'S HEADQUARTERS IN NEW

YORK. CHRISTINA: I AM CHRISTINA RUFFINI.

WE ARE HERE WITH LISA MATEO. SOME BREAKING NEWS.

WE GOT SOME HEADLINES TALKING ABOUT SOLIDIFICATION OF

PROMISED AGREEMENTS COMING OUT OF THE TRUMP-XI JINPING SUMMIT.

DAVID: STILL LOOKING FOR GRANULAR

DETAILS ABOUT WHAT ALL OF IT MEANS.

THERE IS INDICATION THAT THERE WILL BE LESSENING OF TARIFFS

PUT IN PLACE AND PRESSURES TO BOOST EXPORTS.

ALL OF THESE ANNOUNCEMENTS WE HAVE BEEN WAITING FOR SINCE

THIS TRIP CONCLUDED. WE KNEW IT WOULD TAKE SOME TIME

TO GET THE FORMAL ANNOUNCEMENTS. CHRISTINA:

WE WILL UNPACK ALL THAT SHORTLY BUT FIRST WE WANT TO CATCH UP

ON THE HEADLINES WITH LISA MATEO. LISA:

PRESIDENT TRUMP IS BACK AT THE WHITE HOUSE AFTER A THREE-DAY

TRIP TO CHINA TO MEET WITH XI JINPING.

HE SPOKE TO REPORTERS ABOUT TRADE DEALS.

>> WE MADE A LOT OF GREAT TRADE DEALS, INCLUDING OVER 200

PLANES FROM BOEING WITH A PROMISE OF 750 PLANES.

IT IS GENERAL ELECTRIC, ALSO.

APPROXIMATELY 400 TO 450 ENGINES.

AND A PROMISE OF UP TO 750 IF THEY DO A GOOD JOB. LISA:

CHINA'S COMMERCE MINISTRY, BEIJING AND WASHINGTON ROLLED

OUT A SERIES OF MEASURES. TO THE CONFLICT IN THE MIDDLE

EAST, WHERE ISRAEL HAS CARRIED OUT STRIKES ON GAZA CITY,

KILLING HAMAS'S MOST SENIOR MILITARY LEADER.

THAT'S ACCORDING TO THE ISRAELI DEFENSE FORCES AND SECURITY

AGENCY. THE STRIKES KILLED AT LEAST

SEVEN PEOPLE WITH MORE THAN 50 OTHERS INJURED.

THE PENTAGON STOPPING THOUSANDS OF UNITS FROM DEPLOYING.

4000 TROOPS FROM AN ARMY BRIGADE ARE NO LONGER IN ROUTE

TO POLAND THIS WEEK. THE TRUMP ADMINISTRATION HAD

PREVIOUSLY SAID IT WAS CUTTING U.S. FORCES ONLY IN GERMANY.

SERVERS ON THE NATION'S LARGEST COMMUTER RAILROAD -- SERVICE ON

THE NATION'S LARGEST COMMUTER RAILROAD HAS COME TO A HALT AS

WORKERS ON THE LONG ISLAND RAILROAD HAVE GONE ON STRIKE.

THEY FAILED TO COME TO AN AGREEMENT ON HEALTH CARE.

DUANE O'CONNOR SAYS IT'S NOT THE BEST SITUATION.

>> I FEEL TERRIBLE. THIS WILL HURT THE ISLAND AND

THE CITY. ALL WE ARE ASKING FOR IS FAIR

WAGES. LISA:

MORE THAN 270,000 DAILY RIDERS RELY ON THE TRAVELING SERVICE

BETWEEN NEW YORK CITY AND LONG ISLAND.

>> I HAVE FAMILY THAT COMES OUT ON THE TRAIN ALMOST EVERY

WEEKEND TO VISIT. THIS WILL BE DIFFICULT BECAUSE

THEY WILL HAVE TO DRIVE, WHICH IS ALSO CHALLENGING. LISA:

THE MTA SAID IT WILL PRODUCE FREE SHUTTLE BUSES.

THIS IS THE FIRST STRIKE ON THE RAILROAD SINCE 1994 WHEN A TWO

DAY SUSPENSION SHUT DOWN THE SERVICE.

LOUISIANA VOTERS TAKE PART IN A BOAT TO REVAMP AND STRIP DOWN

THE PRIMARY TODAY. -- THAT INCLUDES JOHN FLEMING

AND JULIA LETLOW, WHO WAS ENDORSED BY PRESIDENT TRUMP IN

JANUARY. DAVID: CHINA AND THE U.S.

AGREED TO LOWER SOME LEVIES ON PRODUCTS BILATERAL TRADE.

THIS COMES AFTER PRESIDENT TRUMP TRAVELED BACK TO

WASHINGTON FROM BEIJING. CHRISTINA:

JOINING US IS COURTNEY. BACK AGAIN TO BREAK DOWN WHAT

WE WERE SAYING ABOUT WAITING FOR THESE DELIVERABLES.

WE ARE SEEING DETAILS ABOUT DETAILS.

HAVE WE HEARD ANY SOLIDIFIED AGREEMENTS FROM THE WHITE HOUSE

OR U.S. SIDE AND WHAT ARE WE WAITING

FOR IT STILL TO GET SOME DETAILS ON?

>> CONCEPTS OF A DEAL.

WE ARE STARTING TO HEAR FROM THE CHINESE.

THEY DID AGREE TO LOWER TARIFFS ON A CERTAIN RANGE OF PRODUCTS.

THEY REFERENCED THE AGRICULTURAL SECTOR.

THEY DID CONFIRM THE PLANE DEAL, ALTHOUGH THEY DID NOT

GIVE SPECIFICS THAT THE PRESIDENT REFERRED TO YESTERDAY

ON THE WAY BACK FROM BEIJING. WE ARE STILL WAITING TO HEAR

FROM THE WHITE HOUSE, A BIT MORE.

AGAIN, THE DETAILS REMAIN SCANT HERE.

I THINK UNTIL WE HAVE MORE, WE CAN'T REALLY BREAK DOWN HOW

MUCH ECONOMIC COOPERATION THERE IS HERE.

SOME OF THIS IS SIGNALING, OF COURSE. DAVID:

IT'S A QUIET WEEKEND FOR THE PRESIDENT.

HE HAS EXECUTIVE TIME TODAY AND TOMORROW BUT NOTHING ELSE ON

THE OFFICIAL SCHEDULE. HOW'S THE WHITE HOUSE

CONTEXTUALIZING THE OFFICIAL TRIP?

THEY HAVE MOUNTED TO THE FACT THERE HAS BEEN THIS INVITATION

FOR PRESIDENT XI JINPING TO COME TO THE STATES IN SEPTEMBER.

HOW MUCH EMPHASIS ARE THEY PLACING ON THESE DELIVERABLES

AMID SOME CRITICISM THAT MAY THE NUMBERS WEREN'T AS BIG AS A

LOT OF PEOPLE, ESPECIALLY ON WALL STREET, THOUGHT THEY WOULD

BE. AND THERE WAS NOT KIND OF A DIALING BACK OF THE TARIFFS

THAT WERE PUT IN PLACE TO THE EXTENT A LOT OF PEOPLE EXPECTED.

-- EXPECTED?

>> I THINK THERE WAS HUGE EXPECTATION GOING INTO THIS

THAT THIS WAS GOING TO LARGELY FOCUS ON STABILIZING TRADE,

TALKING ABOUT IRAN AND ANY COOPERATION THE U.S.

COULD GET WITH CHINA THERE IN TERMS OF INTERNATIONAL SUPPORT.

BUT, I THINK THE WHITE HOUSE HAS, SO FAR, FRAMED THIS AS A

HUGE SUCCESS. WE HEARD FROM THE PRESIDENT

YESTERDAY. HE HAS PRAISED IT AS A

FANTASTIC VISIT. HE VERY MUCH WAS REGALED BY ALL

OF THE POMP AND PAGEANTRY THAT XI JINPING HAD ROLLED OUT FOR

HIM.

A LOT OF THIS, AS YOU SAID, WE SAW SCOTT BESSENT AND JAMIESON

GREER LAY THE GROUNDWORK FOR SOME OF THE DEALS THAT WE HAVE

HEARD ABOUT SO FAR, TALKING ABOUT SETTING UP A BOARD OF

TRADE TO OPEN UP INVESTMENT IN NONCRITICAL SECTORS.

AGAIN, WE HAD EXPECTED, WITH THE CADRE OF U.S.

CEOS ATTENDING THIS SUMMIT THAT THERE WOULD BE MORE DEALS ON --

OPENING UP CHINA'S MARKET. WE HAVE YET TO SEE THAT.

I THINK THERE WERE HUGE EXPECTATIONS THAT AI WOULD BE A

HUGE TALKING POINT, WITH THE LAST MINUTE ADDITION OF

NVIDIA'S JENSEN HUANG, WHO JUMPED ON AIR FORCE ONE IN

ALASKA. NONE OF THAT SEEMED TO COME TO

FRUITION. WE WILL BE WATCHING IN THE DAYS

AHEAD TO SEE IF ANY OF THOSE DEALS, ANYTHING ALONG THOSE

SORT OF DEALS MIGHT MATERIALIZE FROM THE WHITE HOUSE. CHRISTINA:

WE WANT TO BRING IN JENNIFER WELCH, BLOOMBERG ECONOMICS

CHIEF GEOECONOMICS ANALYST. THE OTHER THING I FEEL LIKE WE DID

NOT HEAR AS MUCH ABOUT AND WERE EXPECTING TO WAS MORE

COOPERATION ON CRITICAL MINERALS.

CHINA HAS THE LOCKDOWN NOT ONLY ON THE ACTUAL MINERALS

THEMSELVES BUT ALMOST ALL OF THE REFINEMENT NOW IS DONE

THERE IN THE PROCESSING. DO WE MAKE -- DID WE MAKE ANY

PROGRESS THERE? IS THERE ANY INCLINATION THIS

WAS DISCUSSED TO A SIGNIFICANT AMOUNT?

IF NOT, WHAT DOES THAT MEAN?

>> THAT WAS THE ELEPHANT IN THE ROOM, THAT CHINA WIELDS THIS

MASSIVE LEVERAGE OVER CRITICAL MINERALS.

IT WAS A SHOWDOWN BETWEEN THE U.S.

AND CHINA AFTER THE PRESIDENT HAD TARIFFS.

EVEN THOUGH THERE IS LICENSING TO ALLOW THE FLOW OF MINERALS

TO RESUME IN THE UNITED STATES, THERE WERE STILL STIPULATIONS.

THAT IS A CONCERN THAT THE UNITED STATES WILL NEED TO

BRING BACK STOCKPILES. ALSO, THIS -- THESE LINGERING

QUESTIONS THAT SEEM TO BE AIMED AT FRUSTRATING ANY EFFORTS BY

THE U.S.

OR ITS ALLIES TO DE-RISK AND TO DEVELOP -- AWAY FROM CHINA.

BUT DID NOT SEEM TO COME UP IN THE MEETING.

THERE IS NO INDICATION IF THIS WILL GO ANY FURTHER ON THE

CHINESE SIDE OR IF THIS WILL BE A FOCAL POINT OF TENSIONS.

DAVID: YOU'VE PAID ATTENTION FOR A

LONG WHILE TO THE SUPPLY CHAIN INVOLVING SHIPS. -- CHIPS.

WE SAW PRESIDENT TRUMP TALK MORE ABOUT IT ON THE HEELS OF

PRESIDENT XI JINPING'S COMMENTS ALTHOUGH THERE WAS A DELAY IN

TERMS OF THE U.S. RESPONDING TO WHAT THE CHINESE

PRESIDENT HAD TO SAY. IN AN INTERVIEW, THE PRESIDENT

WAS ASKED ABOUT THE CHIP SUPPLY CHAIN AND HERE'S WHAT HE HAD TO

SAY.

>> I'D LIKE TO SEE EVERYBODY MAKING TRIPS OVER IN TAIWAN,

COMING TO AMERICA. IT'S A HEATED SITUATION.

THERE IS NO QUESTION ABOUT IT. AS YOU KNOW, WE HAVE MASSIVE

AMOUNTS OF CHIP COMPANIES OUT FROM TAIWAN, ALREADY COMING IN.

WE EXPECT TO HAVE 40% TO 50% OF THE WORLD'S CHIP BUSINESS BY

THE END OF MY TERM. I THINK IT SHOULD BE EVEN MORE

THAN THAT. I THINK ALL OF THOSE CHIP

COMPANIES, IF THEY ARE SMART, THEY WILL START HAVING TARIFFS.

DAVID: THAT'S GOING TO SOLVE YOUR

PROBLEM. SITUATE THAT IN THE BROADER

CONVERSATION SURROUNDING TAIWAN, THERE ARE A LOT OF

LAWMAKERS WHO WERE STARTLED BY THE FACT THERE WAS NOT A MORE

FORCEFUL MESSAGE ABOUT TAIWAN AND THIS WEAPON STEEL AND THEN

YOU HAVE HIM EXPANDING QUITE A

BIT ON THIS ONE COMMERCIAL SIDE. YOUR THOUGHTS ON THE

RELATIONSHIP AS IT STANDS?

>> I THINK HEADING INTO THE SUMMIT, THERE IS A LOT OF

CONCERNING THINGS.

IT REQUIRES REALLY CAREFUL, DELICATE LANGUAGE.

PRESIDENT TRUMP IS KNOWN -- WHAT HE SAID TO REPORTERS WAS

NOT THE WORST CASE SCENARIO FOR TAIWAN BUT IT WAS FAR FROM A

DEFENSE OF U.S. POLICY TO SUPPORT TAIWAN'S

DEFENSE AND THE IDEA OF DETERRING CHINA FROM EVER

TESTING THAT PROPOSITION. I THINK THERE IS A COUPLE OF

REASONS FOR THAT. TRUMP HAS ALWAYS BEEN SKEPTICAL

ABOUT SUPPORTING TAIWAN AND PARTNERS.

THAT IS SOMETHING THEY HAVE REPORTED ON FOR YEARS.

HE'S COGNIZANT OF CHINA'S LEVERAGE OVER CRITICAL MINERALS

AND PROBABLY HEARD NOT JUST THE REMARKS BEFORE THE MEETING

BEGAN BUT PRIVATELY BEHIND CLOSED DOORS ABOUT HOW THEY ARE

CONCERNED ABOUT ARMS SALES. ESPECIALLY THIS $14 BILLION

PACKAGE THAT IS WAITING ON PRESIDENT TRUMP'S SIGNATURE.

HE WAS NONCOMMITTAL ON WHAT HE WOULD DO WITH THAT PACKAGE ONCE

HE GETS BACK IN WASHINGTON. THAT ALONE IS A DEVIATION FROM

U.S. POLICY, TO SUPPORT TAIWAN'S DEFENSE.

CHRISTINA: I WANT TO ASK YOU ABOUT THE

DEFENSE COMING ON THE HEELS OF THIS VISIT WHICH IS PRESIDENT

PUTIN HAS ANNOUNCED HE WILL BE HEADING TO BEIJING FOR A VISIT

AS WELL. THERE IS THIS THEORY AND PUTIN

HAS ALLEGEDLY BEEN A PROPONENT OF THIS THEORY OF SPEARS

INFLUENCE. HIS THEORY IS RUSSIA SHOULD GET

FREE REIGN IN UKRAINE AND EASTERN EUROPE AND CHINA SHOULD

GET FREE REIGN IN ASIA AND THE AMERICANS CAN HANDLE OUR OWN

HEMISPHERE. THIS IS AN ARGUMENT THAT

DEPENDING ON THE DAY, THE PRESIDENT SEEMS TO BE AMENABLE

TO IF NOT ALL IN SO FAR. WHAT DOES IT SAY TO YOU THAT

PUTIN WILL MEET WITH XI JINPING, TWO PEOPLE WHO WOULD

LIKE THE U.S. TO STEP BACK, AND I WONDER WHO

YOU THINK THEY WILL BE TALKING ABOUT WHEN THEY ARE IN THE ROOM

TOGETHER.

>> THE OBVIOUS ANSWER IS DONALD TRUMP.

THIS IS SOMETHING PRESIDENT PUTIN SAID HE WAS WATCHING

TRUMP'S VISIT VERY CLOSELY. IT SHOULD COME AS NO SURPRISE

THAT HE WOULD WANT A FOLLOW-UP WITH A VISIT TO XI JINPING TO

MAKE SURE THEY ARE COMPLETELY ALIGNED.

TO YOUR POINT ABOUT THE SPHERES OF INFLUENCE, THAT IS SOMETHING

THAT THE U.S. LARGELY AGREED WITH IN THE

NATIONAL SECURITY STATEMENT THEY RELEASED LAST YEAR IN

WHICH THEY WANTED TO REASSERT U.S. DOMINANCE IN THE WESTERN

HEMISPHERE. THEY HAVE, OF COURSE, SEEMINGLY

GOT A LITTLE DISTRACTED IN IRAN. BUT THIS IS SOMETHING THAT DID

NOT COME AS NO SURPRISE TO ME TO SEE, TO HEAR THAT VLADIMIR

PUTIN WOULD BE TRAVELING TO CHINA ON THE HEELS OF DONALD'S

VISIT. DAVID: YOU'VE TAKEN US RIGHT WHERE I

WANTED US TO GO. AM GOING TO ASK YOU ABOUT THE

BROADER STRATEGY THE U.S. HAS TOWARD CHINA.

LET ME PLAY A LITTLE BIT OF SOUND FROM THE FORMER PRESIDENT

OF SINGAPORE. LET'S HEAR WHAT HE HAD TO SAY

AND HOW MUCH SUCCESS THE U.S. COULD HAVE KEEPING CHINA AT BAY.

>> IT'S NOT WISE POLICY OF THE UNITED STATES TO STOP THE RISE

OF CHINA. CHINA CAN NO LONGER BE STOPPED.

AND THE ONLY WAY TO STOP CHINA IS TO ASK THE CHINESE

GOVERNMENT TO STOP IMPROVING THE LIVELIHOOD OF ITS OWN

PEOPLE. RIGHT? THAT'S THE ONLY WAY CHINA WILL

STOP GROWING. BUT CHINA STILL HAS A LONG WAY

TO GO. ITS PER CAPITA INCOME IS WAY

BEHIND THAT OF THE UNITED STATES. IT HAS A LONG WAY TO GO.

DAVID: THE FORMER SINGAPOREAN DIPLOMAT.

AS CHRISTIE AND TALKS ABOUT THESE SPHERES OF INFLUENCE, HOW

MUCH TIME -- CHRISTINA TALKS ABOUT THESE SPHERES OF

INFLUENCE, HOW MUCH TIME DOES -- HAVE TO STOP?

>> THE ONGOING WAR IN THE MIDDLE EAST IS PULLING TIME,

RESOURCES AND ENERGY OUT OF THE INDO PACIFIC AND DIRECTING THEM

TOWARD THE MIDDLE EAST. INCLUDING MISSILE DEFENSE

SYSTEMS THAT, FOR EXAMPLE, OUR ASIAN ALLIES VERY MUCH DEPEND

ON. AND WHAT THAT IS SYMBOLIC OF IS

SOMETHING THAT HAS BEEN A TREND TO U.S.

POLICY FOR OVER A DECADE, WHICH

IS A DESIRE IN THE WORLD'S MOST DYNAMIC ECONOMIC REGION, HOME

TO CRITICAL SUPPLY CHAINS AND YET CONSTANTLY GETTING PULLED

IN OTHER DIRECTIONS AND DISTRACTIONS.

THAT CONTINUES TO BE A THEME, EVEN THOUGH PRESIDENT TRUMP

JUST MADE THIS TRIP TO CHINA, HE DIDN'T STOP ANYWHERE ELSE

ALONG THE WAY. THAT IS A DEPARTURE.

NORMALLY PRESIDENTS MAKE A CHINA TRIP PART OF A LARGER

TRIP IN THE REGION. IN THIS CASE, THAT WAS A MISSED

OPPORTUNITY. DAVID: CHRISTINA, YOU ARE THERE WHEN

TRUMP WALKED ACROSS THE BORDER INTO NORTH KOREA. CHRISTINA:

THAT WAS A MULTI-PART TRIP. EVERY TIME WE WENT TO ASIA, WE

STOPPED IN VIETNAM EVERY TIME AND WE HAD DIFFERENT PLACES THE

U.S. WAS TRYING TO GET AGREEMENTS

WITH. QUICKLY BEFORE WE LET YOU GO,

WE HAVE PIVOTED TO ASIA. THE PRESIDENT DOING EXECUTIVE

TIME, WHAT'S NEXT UP ON THE AGENDA AS FAR AS FOREIGN GOES

WITH THE PRESIDENT?

>> I THINK WE WILL BE WATCHING TO SEE IF THE PRESIDENT FOLLOWS

THROUGH WITH A CALL TO TAIWAN'S PRESIDENT.

HE SAID HE NEEDED TO SPEAK TO THE PERSON WHO WAS RUNNING

TAIWAN, WHICH APPEARED TO BE A REFERENCE TO PRESIDENT MAI.

WE WILL SEE IF THAT PHONE CALL HAPPENS.

THAT PHONE CALL WOULD DRAW CHINA'S BUYER.

I EXPECT WE WILL HEAR FROM REPUBLICANS WHO ARE

TRYING TO SHAPE WHAT HAPPENS NEXT. CHRISTINA:

THANK YOU BOTH FOR MAKING US A BIT SMARTER THIS MONEY. DAVID:

THE U.K. PRIME MINISTER FIGHTING FOR HIS

SURVIVAL AFTER A BRUTAL ELECTION.

THE LATEST IN THE A POLITICAL -- IN THE POLITICAL UNREST FOR

AMERICA'S CLOSEST ALLY.

YOU CAN FIND THIS AT BLOOMBERG TELEVISION, BLOOMBERG.COM, THE

BLOOMBERG TERMINAL AND THE BLOOMBERG APP.

MORE TO COME HERE ON "BLOOMBERG THIS WEEKEND." ♪

LISA: THANKS FOR JOINING US LIVE ON

BLOOMBERG. I AM LISA MATEO. LET'S GET YOU UP-TO-DATE ON

TODAY'S TOP STORIES. THE SUPREME COURT HAS REJECTED

A BID BY VIRGINIA TIM ACROSS -- DEMOCRATS.

THE VIRGINIA SUPREME COURT HAS DECIDED THE MAP WAS ADOPTED IN

VIOLATION OF THE STATE CONSTITUTION.

THE RULING IS A BIG SETBACK TO DEMOCRATIC HOPES OF COUNTERING

REPUBLICAN REDISTRICTING IN OTHER STATES AHEAD OF THIS

YEAR'S MIDTERMS. MEANWHILE, THOUSANDS ARE EXPECTED TO

GATHER IN MONTGOMERY, ALABAMA IN SUPPORT OF VOTING RIGHTS.

JARED POLIS HAS REDUCED THE STATE PRISON SENTENCE OF TINA

PETERS, ALLOWING HER TO BE ELIGIBLE FOR PAROLE ON JUNE 1.

SHE WAS CONVICTED OF TAMPERING WITH ELECTION EQUIPMENT AND HAD

BEEN SERVING A NINE-YEAR STATE PRISON SENTENCE.

THE DECISION FOLLOWS A MONTH-LONG PRESSURE CAMPAIGN

FROM PRESIDENT TRUMP. MULTIPLE OUTLETS REPORTING THE

U.S. COULD ANNOUNCE A POSSIBLE

CRIMINAL INDICTMENT OF RAUL CASTRO IN THE COMING DAYS.

IT CENTERS AROUND THE 1996 SHOOTDOWN OF A PLANE THAT WAS

OPERATED BY BROTHERS TO THE RESCUE.

THIS COMES AS PRESIDENT TRUMP RAMPS UP PRESSURE ON THE ISLAND

WITH JOHN RATCLIFFE VISITING CUBA.

THE COUNTRY HAS RUN OUT OF THE DIESEL AND FUEL OIL IT NEEDS TO

KEEP POWER PLANTS RUNNING. PLUNGING MUCH OF THE ISLAND

INTO DARKNESS AND SPARKING PROTESTS.

CHRISTINA: BRITISH PRIME MINISTER KEIR

STARMER SAYS HE PLANS TO GET ON WITH GOVERNING AFTER HIS PARTY

SUFFERED BRUTAL LOSSES IN THE LOCAL COUNCIL ELECTIONS LAST

WEEK. EVEN THOUGH THE RESULTS OF THAT

RACE DON'T HAVE A BEARING ON PARLIAMENT, PRESSURE IS

MOUNTING WITHIN HIS OWN PARTY FOR HIM TO STEP DOWN. DAVID:

JOINING US TO EXPLAIN HOW HE GOT HERE AND WHAT HIS ODDS ARE

FOR KEEPING HIS JOB IS THE EXECUTIVE EDITOR AND FRANKLY,

OUR BOSS. CHRISTINA: NO STRESS HERE, WHATSOEVER.

DAVID: THE MAYOR OF MANCHESTER OUT FOR

A RUN, WEARING A SHIRT FROM THE 202210 K HE RAN.

A LOT OF INTEREST IN -- 2022 10 K HE RAN.

A LOT OF INTEREST IN HIM. AS HE MAKES THIS BID OR WE

ASSUME HE WILL, WHAT'S HIS BRAND OF POLITICS?

>> THAT'S WHAT EVERYONE IS ASKING.

HE'S BEEN A POLITICIAN FOR A LONG TIME.

HE WAS IN TONY BLAIR'S CABINET BACK IN THE DAY.

HE'S BEEN THE MAYOR OF MANCHESTER FOR THE LAST FEW

YEARS. THE KING OF THE NORTH IS ONE OF

THE NICKNAMES HE LIKES TO BOUNTY AROUND.

THE CITY OF MANCHESTER HAS BEEN BOOMING ECONOMICALLY.

HOW MUCH IS THAT ATTRIBUTABLE TO HIS POLICIES, THAT CAN BE

DEBATED. HE'S POPULAR AS POLITICIANS GO.

NOT MANY ARE POPULAR. WHEN YOU LOOK AT THE RANGE OF

OPTIONS, AFTER THIS DISASTROUS LOCAL ELECTIONS RESULT, HE

SEEMS TO BE THE PERSON EVERYONE THANKS MIGHT HAVE THE BEST

CHANCE OF BEATING THESE PARTIES. YOU HAVE REFORM AND THE RISING

GREEN PARTY. THEY ARE EATING BOATS FROM THE

LEFT AND THE RIGHT AT THE LABOUR PARTY.

THIS IS JUST TWO YEARS.

NOT EVEN TWO YEARS AFTER A HUGE LANDSLIDE VICTORY FOR THE

LABOUR PARTY. THIS IS ONE OF THE THINGS ABOUT

BRITISH POLITICS.

EVEN WITH A HUGE LANDSLIDE, THE POSITION HAS BEEN QUESTION.

CHRISTINA: LET'S GO BACK FOR A SECOND, HOW

DID WE GET HERE?

HOW LONG ARE WE TALKING LIST TRUST -- LIZ TRUSS HEAD OF LEAD

INSTALLATION?

>> STARMER IS SAYING HE WILL STAY IN POST. I RECOMMEND GOING

TO BLOOMBERG.COM.

THERE IS A TAKE CALLED HOW KEIR STARMER IMPLODED.

IT TRACES US BACK TO THE LANDSLIDE VICTORY IN JULY OF

2024, WHEN HE SUDDENLY SEEMED TO HAVE ALL OF THIS POWER AND

VERY QUICKLY, THROUGH A SERIES OF MISSTEPS AND DECISIONS, HIS

AUTHORITY HAS BEEN -- AWAY. CHRISTINA:

KIND OF SOME CELL PHONES. -- SELF OWNS.

>> BLOOMBERG INVESTIGATION REVEALED HIS TIES WITH EPSTEIN,

JEFFREY EPSTEIN, HAD CONTINUED AFTER EPSTEIN'S CONVICTION AND

THE GOVERNMENT KNEW MORE ABOUT THAT THAN THEY LET ON WHEN THEY

POINTED HIM AS AMBASSADOR TO THE UNITED STATES.

THAT CAUSED A HUGE SCANDAL IN BRITAIN AND WAS THE MOMENT

WHERE EVERYONE FELT THIS CAN'T REALLY GO ON AND HIS AUTHORITY

HAD BEEN UNDERMINED. THAT WAS SEVERAL MONTHS AGO.

CUT TO LAST WEEK, WHERE THINGS REALLY KICKED INTO GEAR.

WE HAD THE HEALTH SECRETARY RESIGNING FROM THE CABINET ON

THE DAY -- FROM THE CABINET WAS LEAKED ON THE DAY OF THE SPEECH.

HE'S GONE AND SAID THE SITUATION IS LESS SUSTAINABLE.

THEN YOU HAVE HIM STANDING TO GET BACK.

THERE WILL BE A BY ELECTION IN BRITAIN.

IF HE WINS THAT, THAT IS A BIG IF, BECAUSE HE HAS TO WIN THAT

SEAT AGAINST A VERY POPULAR REFORM PARTY CANDIDATE, THEN

THERE WILL BE A CONTEST, WE ASSUME.

WE HAVE A SLIGHTLY COMPLEX SEQUENCE OF EVENTS AND KIND OF

AN UNPRECEDENTED ONE.

THIS SPECIAL ELECTION COULD POTENTIALLY DECIDE WHO THE NEXT

PRIME MINISTER IS. I DON'T THINK WE'VE BEEN HERE

BEFORE. DAVID: WHAT'S HIS APPETITE FOR THIS?

IS HE BEING COY ABOUT THIS?

A CABINET MEMBER DOING ALL OF THAT.

AS WE SEE STARMER ADAMANT HE IS STICKING WITH THIS.

IS ANDY BURNHAM OUT FRONT, SAYING HE WANTS THIS TO BE THE

CASE? ARE THE KNIVES OUT?

>> THE KNIVES HAVE NOT BEEN QUITE OUT.

THEY ARE STILL KEPT IN THE SHEETS AT THIS POINT.

YOU HAD THEM SAYING THINGS LIKE WE NEED OUR BEST PLAYERS ON THE

PITCH. ANDY BURNHAM HAD A GO AT GETTING A SEAT A FEW MONTHS AGO

AND IT WAS BLOCKED BY KEIR STARMER'S ALLIES WHO RUN THE

LABOUR PARTY. YOU CANNOT -- SAYING YOU CAN'T

DO THIS BECAUSE IT WAS SEEN AS TOO MUCH OF A RISK.

NOW THEY ARE SAYING FINE, YOU CAN GO AHEAD.

IT SHOWS EVEN MORE THAT HIS POWER AND AUTHORITY HAS BEEN

LEACHED IN A WAY. MAYBE IN PUBLIC HE WILL SAY

HE'S GOING TO KEEP FIGHTING. BUT IN PRIVATE, PERHAPS, IF

HE'S ALLOWING ANDY BURNHAM TO COME BACK IN, THERE MIGHT BE AN

ACCEPTANCE THAT MAYBE IT IS TIME. CHRISTINA:

IS THERE A RISK THAT THIS NOT QUITE OUT IN THE OPEN

INFIGHTING COULD GIVE MORE MOMENTUM?

>> THAT'S EXACTLY THE POINT.

WHEN THEY WON THIS BIG LANDSLIDE, KEIR STARMER SAID

THE PSYCHODRAMA OF THE TORY PARTY IS OVER.

WE ARE THE ADULTS IN THE ROOM.

LOOK WHERE WE ARE, TWO YEARS LATER, IT IS A CARBON COPY.

IF YOU ARE NIGEL FARAGE, YOU SAY THEY ARE ALL THE SAME.

LABOR, TORY, THEY ARE ALL DEAD.

COME TO US, WE ARE THE PARTY TO BRING REFORM.

THEY STOLE COUNCILS FROM THE LABORS AND THE TORIES.

IT IS KIND OF A LOSE-LOSE FOR KEIR STARMER, THIS SPECIAL

ELECTION. IF ANDY BURNHAM WINS, OK, MAYBE

LABOR CAN DEFEATSTARMER IS PROBABLY TOAST. IF THEY LOSE,

NO ONE CAN BE REFORM AND THERE'S A HUGE AMOUNT OF

EXISTENTIAL ANGST IN THE LABOUR PARTY. DAVID:

LET ME GO BACK TO THE SPECIAL RELATIONSHIP AND THE TIKTOK YOU

MENTIONED ON THE BLOOMBERG TODAY. A PERSON CLOSE TO STARMER

BLAINE TRUMP AS RESPONSIBLE FOR THE FAILURE OF HIS PREMIERSHIP.

"THE INTERNATIONAL CRISES THAT FULL ADMIT IT WAS IMPOSSIBLE

FOR THE PRIME MINISTER TO FOCUS ON THE DOMESTIC PRIORITIES OF

VOTERS." WHAT HAS CHANGED?

WILL THE NEW CIRCUMSTANCE BE THE SAME?

THE WHIMS AND EFFORTS OF PRESIDENT TRUMP STAND TO

SCUTTLE ANY DOMESTIC POLICYMAKING OR PRIORITIES OF

PRIME MINISTER WOULD HAVE? DAVE: IT IS EASY TO BLAME DONALD

TRUMP. IT'S A BIT OF A STRETCH.

KEIR STARMER HAS DEPARTED FROM THE NORM OF BRITISH PRIME

MINISTERS IN THE LAST DECADES IN NOT JOINING THE AMERICAN

ADMINISTRATION IN A CONFLICT. TONY BLAIR, IRAQ WAR.

CAME OUT AND WAS QUITE VOCAL THAT IT COST OF HIS JOB.

HE SAID YOU HAVE TO FOLLOW AMERICA. IT IS TOO IMPORTANT.

IT WAS UNPOPULAR WITH THE BRITISH PUBLIC.

KEIR STARMER TOOK A DIFFERENT TACK.

I WOULD ARGUE THAT SHORT OF HIS STANDING WITH THE -- SHORED UP

HIS STANDING WITH THE BRITISH PUBLIC.

DONALD TRUMP VERY UNPOPULAR IN BRITAIN.

TAGGING YOUR POLICIES TO HIM IS A PATHWAY TO SUCCESS.

YOU CAN BE SURE THAT ANDY BURNHAM, WHO IS EVEN MORE LEFT

OF THE PARTY, I DON'T THINK HE'S GOING TO BE TACKING ANY