DAVID: BREAKING NEWS, PRESIDENT TERMS

TRADE WAR ESCALATES. LAST-MINUTE TALKS WITH CANADA

FELL APART OVER NIGHT IN SPITE OF POSITIVE MESSAGING HOURS

BEFORE. PRES. TRUMP: WE SHOULD BE ABLE TO HAVE A

DEAL WITH CANADA. DAVID: NOW FRESH 50% TARIFFS ARE IN

EFFECT ON BILLIONS OF DOLLARS OF CANADIAN GOODS. CHRISTINA:

THE WHITE HOUSE UNVEILS PLANS TO LOWER BEEF PRICES BUT SOME

AMERICAN CATTLEMEN AND LAWMAKERS HAVE BEEF WITH THE

PROPOSAL. DAVID: THE PRESIDENT WEIGHS IN ON THE

TREASURY DEPARTMENT'S BOND BUYBACKS AND THE POTENTIAL FOR

MORE INTERVENTION. PRES. TRUMP: ANY TIME INTERVENTION, THAT'S

ONE. THE ULTIMATE INTERVENTION IS

OUR MILITARY. [MUSIC PLAYING]

CHRISTINA: WAS THAT YOU GROANING AT MY

BEEF PUN? DAVID: AUDIBLY. CHRISTINA:

COMING TO YOU LIVE FROM OUR WORLD HEADQUARTERS IN NEW YORK,

ON CHRISTINA RUFFINI. DAVID: I AM DAVID GURA, AUGUST 22,

WELCOME TO OUR LISTENERS AND VIEWERS ON OUR BLOOMBERG

PLATFORMS, RADIO, TELEVISION, BLOOMBERG.COM, IN THE BUSINESS

APP. TO RECAP THE TOP OF THE SHOW,

THERE WAS A LOT OF POSITIVE FEELING INTO THE LAST-MINUTE

TALKS BETWEEN THE UNITED STATES AND CANADA IN WASHINGTON, D.C..

THE VIBES WERE GOOD. CHRISTINA: THIS WAS NOT ON OUR RADAR.

DAVID: THAT IT FELL APART.

WE WILL SEE WHAT HAPPENS WITH PROMISED RETALIATION FROM PRIME

MINISTER CARNEY AND THE U.S. TRADE REPRESENTATIVE JAMIESON

GREER INDICATING THE U.S. WILL RESPOND IN KIND. CHRISTINA:

900 BILLION DOLLARS IN BILATERAL TRADE ON THE LINE.

WE WILL GO TO ALEXIS FOR THE HEADLINES. ALEXIS:

IT IS OUR TOP STORY. THE U.S.

SLAPPING 50% TARIFFS ON BILLIONS OF DOLLARS OF CANADIAN

PRODUCTS AFTER TALKS BETWEEN THE TWO LONG-TIME ALLIES BROKE

SLAP -- LATE LAST NIGHT. THE TARIFFS TAKE EFFECT

IMMEDIATELY ON HUNDREDS OF ITEMS INCLUDING PLYWOOD,

LIQUOR, EVEN HOCKEY GEAR. PRIME MINISTER CARNEY PROMISES

RETALIATION SAYING "CANADA WILL MATCH THOSE TARIFFS DOLLAR FOR

DOLLAR TO PROTECT OUR WORKERS AND BUSINESSES."

THE TWO SIDES BLAME EACH OTHER FOR THE COLLAPSE IN TALKS.

SAYING CANADA MADE 11TH HOUR DEMANDS THAT OFFENDED A DRAFT

DEAL MADE EARLIER THE WEEK. PRESIDENT TRUMP WAS IN NORTH

CAROLINA MAKING A LAST-MINUTE APPEAL FOR SENATOR DARLINE

GRAHAM , HIS PICK TO REPLACE HER BROTHER, LATE SENATOR LINDSEY

GRAHAM PEER GROUP PRES. TRUMP: WE ARE GOING TO STOP THE

RADICAL LEFT DEMOCRAT COMMUNISTS IN SOUTH CAROLINA

AND ACROSS THE NATION.

WE ARE GOING TO ELECT SENATOR DARLINE GRAHAM TO FIGHT, FIGHT,

FIGHT FOR SOUTH CAROLINA AND TO ALWAYS PUT AMERICA. ALEXIS:

VOTERS WILL DECIDE TUESDAY IF GRAHAM OR RALPH NORMAN WILL BE

ON THE BALLOT. DON ROBERTS IS ALLOWING THE

WHITE HOUSE TO CONTINUE CONSTRUCTION ON PRESIDENT

TRUMP'S $400 MILLION BALLROOM PROJECT FOR NOW.

ROBERTS SIGNED A TEMPORARY ORDER YESTERDAY ALLOWING WORK

TO CONTINUE ALL THE COURT CONSIDERS AN EMERGENCY APPEAL

FROM A TRUMP ADMINISTRATION. THE LOWER COURT ORDERED A HALT

TO THE PROJECT FINDING THAT IT MUST HAVE CONGRESSIONAL

APPROVAL. U.S. CATTLE RANCHERS AND THE

REPUBLICANS WHO REPRESENT THEM ARE PUSHING BACK ON PRESIDENT

TRUMP'S PLAN TO ALLOW MORE BEEF TO BE TEMPORARILY IMPORTED INTO

THE U.S. TARIFF FREE AND SOLD AT 25%

BELOW CURRENT MARKET PRICES. BEEF PRICES HAVE BEEN SOARING

TO RECORD HIGHS IN A SHORTAGE. THEY WARN THAT INCREASING

IMPORTS COULD HURT AMERICAN RENTERS WHO ARE SEEING RARE

PROFITS THIS YEAR. CALIFORNIA GOVERNOR GAVIN

NEWSOM SAYS HE PREFERS A SETTLEMENT OF THE STATE

ATTORNEY GENERAL'S LAWSUIT OPPOSING PARAMOUNT SKYDANCE'S

ACQUISITION OF WARNER BROS. DISCOVERY "IF IT'S A GOOD DEAL."

HE WEIGHED IN AHEAD OF PLAN TALKS MONDAY HEAD OF PARAMOUNT

AND THE STATE'S CHALLENGING 110 BILLION DOLLAR MERGER.

THE PARAMOUNT CEO DAVID ELLISON IS THREATENING TO MOVE THE

COMPANY OUT OF CALIFORNIA. A BOARD VOTE COULD COME AS

EARLY AS OCTOBER. DAVID: THANK YOU VERY MUCH.

IT IS COSTING MONEY THE LONGER THAT IT DRAGS ON. CHRISTINA:

IT'S THE MERGER THAT NEVER IN SPIRIT WE'VE BEEN COVERING IT

SINCE I STARTED HERE. DAVID: THE TOP STORY, JOINING US IS

JEFF MASON, THE WHITE HOUSE CORRESPONDENT FROM BLOOMBERG

NEWS AND A COLUMNIST FROM BLOOMBERG NEWS THAT FOCUSES ON

U.S. MARKETS AND ECONOMIC NEWS.

THERE WAS A GOOD FEELING TAKING PLACE IN THE STOCKS.

LET ME READ THROUGH THE DUELING STATEMENTS THAT WE GOT AFTER

RELEASED FROM THEM. JAMIESON GREER SAYING CANADA

DECLINED TO FINALIZE THE TRADE DEAL UNDER THE TERMS AGREED TO

EARLIER THIS WEEK DESPITE THE U.S.

OFFERED TO CANADA TO RECEIVE THE BEST TREATMENT OF ANY MAJOR

EXPORTER TO OUR MARKET. LOOKING AT WHAT PRIME MINISTER

MARK CARNEY SAID IN HIS STATEMENT, WE HAVE RECOGNIZED

FROM THE BEGINNING THAT AMERICA HAS CHANGED AND WE WILL NOT

RETURN TO OUR OLD RELATIONSHIP. CANADA HAS WITH THE WORLD ONE

SIDE WE WILL NOT ALLOW ANY NATION TO DETERMINE OUR FUTURE.

WE WILL SET OUR OWN COURSE TO KEEP BUILDING CANADA STRONG FOR

ALL PEER JEFF MASON, WHAT HAPPENED LATE LAST NIGHT? JEFF:

IT SOUNDS LIKE THE OUTLINES OF THE DEAL THEY HAD A FEW DAYS

AGO WHICH PROMPTED PRESIDENT TRUMP TO GIVE NEGOTIATORS A FEW

MORE DAYS TO KEEP GOING COLLAPSED.

THERE IS A LITTLE BIT OF A COMPETING NARRATIVE ABOUT WHY

IT COLLAPSED WITH REGARD TO WHETHER THE CANADIANS DIDN'T

LIKE SOMETHING OR WHETHER THE U.S. SIDE DIDN'T LIKE SOMETHING.

IN ANY CASE IT COLLAPSED. I WOULD TAKE A SECOND TO STEP

BACK AND SAY THIS IS CANADA THAT THE UNITED STATES IS

FIGHTING WITH RIGHT NOW. THE NORTHERN NEIGHBOR THAT HAS

BEEN NOT ONLY A KEY TRADING PARTNER FOR DECADES, BUT A

FRIEND AND A CLOSE, CLOSE ALLY, NOT ONLY HERE IN NORTH AMERICA,

BUT AS PART OF THE G8 OR G-7, WHAT IT'S BECOME.

THIS IS OUR FRIEND, SHALL WE SAY. THE TENSION BETWEEN THE TWO

SIDES ARE NOW I WOULD ARGUE NEARLY AT ALL TIME HIGH.

EARLIER THE PRESIDENT OFFERED/THREATENED/RAISED THE

POSSIBILITY OF MAKING CANADA THE 51ST U.S. STATE.

THAT DID NOT GO OVER WELL. YOU CAN SEE FROM PRIME MINISTER

CARNEY'S STATEMENT THAT HAS PROMPTED ACTION IN THE NORTH TO

STRENGTHEN CANADA'S ECONOMY AND HE SAID EARLIER THIS WEEK WHEN

TALKS WERE STILL GOING THAT THE

FOCUS WOULD REMAIN ON MAKING CANADA MORE INDEPENDENT FROM

THE UNITED STATES AND THAT IS CERTAINLY THE DIRECTION THAT

HIS COUNTRY IS GOING NOW UNDER HIS LEADERSHIP.

THAT'S POPULAR WITH CANADIANS. CHRISTINA:

JONATHAN, WE REFERENCED EARLIER A CHART FROM OUR BLOOMBERG

COLLEAGUES, $900 BILLION IN TRADE ANNUALLY.

IT SEEMS THERE ARE TWO ISSUES, THE POLICY AND THE IMPACT OF

THESE POTENTIAL 50% TARIFFS, BUT ALSO THE IMPACT OF THIS

CONSISTENT UNPREDICTABILITY. I KNOW THAT MARKETS AND

OFFICIALS HATE IT. QUITE TALK TO CANADIAN

OFFICIALS -- WHEN I TALKED TO CANADIAN OFFICIALS DURING THE

LAST ROUND WHAT THEY WERE MOST FRUSTRATED ABOUT WAS NOT

KNOWING WHAT WAS GOING TO HAPPEN.

HOW ARE YOU EXPECTING THE FOLLOW-UP TO GO AS MARKETS OPEN

ON MONDAY AND WE SEE THE IMPACT OF THE TARIFFS THEMSELVES?

>> MARKETS HAVE BASICALLY MOVED ON FROM THE TARIFF STORY.

I'M NOT SURE THAT THAT'S THE RIGHT WAY TO THINK ABOUT IT.

THERE IS A SENSE THAT TARIFF PASS-THROUGH IS OVER, NO LONGER

AN INFLATION STORY THAT DEEP INTO THE CONSUMER BASKET IN THE

UNITED STATES WE SEE WE ARE LIVING WITH MANY OF THE

RAMIFICATIONS OF THE DECISIONS MADE IN 2025.

ONE EXAMPLE TALKING ABOUT A LOT OF AGRICULTURAL PRODUCTS TODAY,

CONSIDER THE 2025 TOMATO TARIFFS. CHRISTINA: SURE, SURE.

JONATHAN: THERE WERE FIRST-ORDER EFFECTS

BUT A LOT OF PEOPLE HAVE FORGOTTEN THAT WE ARE ONLY NOW

LIVING WITH THE SECOND ORDER EFFECTS.

TOMATO TARIFFS GOING TO AFFECT. SO FARMERS ABROAD DECIDE NOT TO

PLANT AS MANY TOMATOES. THE DOMESTIC TOMATO INDUSTRY

SUFFERS A FARIES. ALL OF A SUDDEN, IN THE LAST

FEW MONTHS WE ARE LIVING WITH MAJOR PRODUCE SECTION INFLATION

IN THE UNITED STATES OF AMERICA. WHEN PEOPLE THINK THESE ARE

JUST ON AGAIN/OFF AGAIN DECISIONS, THE FACT OF THE

MATTER IS THERE IS A LONG LAG IN DECISIONS MADE TODAY AND

THEY COULD BE THE INFLATION THAT WE LIVE WITH IN 2027.

DAVID: INFLATION HAS BEEN THE STORY OF

THE WEEK, COMBINED WITH THE STORY.

THE PRESIDENT WAS ASKED ABOUT THAT LAST NIGHT AS HE MADE HIS

WAY TO MYRTLE BEACH, SOUTH CAROLINA DISCOMFORT DARLINE

GRAHAM WHO IS RUNNING FOR SENATE.

LET'S LISTEN TO WHAT HE SAID ABOUT THAT INTERVENTION.

>> SECRETARY BESSENT INTERVENING IN THE BOND MARKET,

WAS THAT YOUR IDEA? PR PRES. TRUMP:

HE HAS A VERY GOOD NATURAL TOUCH.

HE DID THAT.

>> FIELDS HAVE COME BACK UP SINCE THEN.

HAVE YOU TALKED WITH HIM ABOUT ANOTHER TYPE OF INTERVENTION?

PRES. TRUMP: THERE ARE MANY TYPES OF

INTERVENTION. THE ULTIMATE TYPE OF

INTERVENTION IS OUR MILITARY. IF WE HAVE TO USE THAT WE WILL.

DAVID: THE ULTIMATE INTERVENTION IS

OUR MILITARY IN THE CONTEXT OF BOND MARKET INTERVENTION.

I WILL ASK YOU WHAT YOU THINK THE PRESIDENT MEANT BY THAT.

I NOTE HIS COMMENTS ABOUT THE TREASURY SECRETARY HAVING A

GOOD NATURAL TOUCH FOR BONDS AND INTERESTS, THE TREASURY

SECRETARY FLOATING THERE IS MORE IN HIS TOOLKIT YET.

WHAT YOU MAKE OF THE PRESIDENT'S REMARKS AND WHAT

YOU EXPECT THE TREASURY SECRETARY TO ANNOUNCE IN THE

DAYS TO COME? JONATHAN:

THIS IS TREASURY SECRETARY SCOTT BESSENT DOING HIS BEST

IMPRESSION OF THE MEDIEVAL KING WHO MARCHED TO THE SHORE AND

COMMANDED THE TIDE TO STOP. JUST LIKE KING CANUTE TREASURY

SECRETARY BESSENT IS NOT GOING

TO MOVE THE NEEDLE WITH MAY BE 32 BILLION, A QUARTER OF

INTERVENTIONS, IN A $30 TRILLION PLUS BOND MARKET.

IT SEEMS TO ME TO BE A NAKEDLY POLITICAL ATTEMPT TO LOOK LIKE

HE'S DOING SOMETHING LESS THAN THREE MONTHS BEFORE THE MIDTERM

ELECTIONS. AS I SAY, I DON'T SEE THIS

REALLY MOVING THE NEEDLE. THIS IS AN ADMINISTRATION THAT

TIME AND TIME AGAIN HAS TURNED TO GIMMICKS BECAUSE IT SEEMS

PANICKED ABOUT WHAT'S GOING ON IN THE LONG END OF THE BOND

CURVE. WE SAW THEM CHANGE BANK CAPITAL

REQUIREMENTS. WE SAW THEM COME OUT WITH THE

GENIUS ACT WHICH HAD A REAL TREASURY MARKET ANGLE TO IT.

WE SAW THEM JOIN JAPAN IN THE YEN INTERVENTION.

I THINK ALL OF THESE THINGS WERE BASICALLY BACKDOOR EFFORTS

TO ADDRESS THE SITUATION IN THE LONG END OF THE YIELD CURVE OR

AT LEAST PREVENT IT FROM GETTING WORSE. GUESS WHAT.

EACH AND EVERY ONE OF THEM MAYBE BUT YOU AN AFTERNOON.

CHRISTINA: TOMATO TARIFFS AND KING CANUTE

REFERENCES? YOU ARE FITTING RIGHT IN.

IT'S LOVELY TO HAVE YOU. JEFF MASON, THE BAR IS NOW VERY

HIGH. I WANT TO ASK ABOUT THE LARGER

POLICY RAMIFICATIONS BECAUSE THERE IS A QUOTE FROM THE

BRITISH COLUMBIA PREMIER THIS MORNING SAYING "OUR POLITENESS

SHOULD NEVER BE MISTAKEN FOR WEAKNESS. WE WILL ALWAYS DEFEND

OURSELVES. WE DID NOT ASK FOR THIS BUT

WILL KEEP FIGHTING AS LONG AS IT TAKES."

IT SEEMS THERE ARE SO MANY OTHER NONECONOMIC COOPERATION

LANES BETWEEN THE U.S. AND CANADA.

I THINK ABOUT NORAD, THE SPACE FORCE.

IS IS THEY'RE CONCERNED THIS COULD SPILL OVER INTO OTHER

POLICY GOALS AND OBJECTIVES THE PRESIDENT WOULD LIKE TO PURSUE

AND THE CANADIANS MAY SAY NUH -UH. JEFF:

GIVE ME A SECOND, I'M TRYING TO THINK OF ANOTHER REFERENCE

BESIDES KING CANUTE. YOUR REFERENCE IS SPOT ON.

I WOULD RESPOND WITH ANOTHER QUESTION.

AS WE GET THROUGH THE MIDPOINT, NEARLY THE MIDPOINT OF

PRESIDENT TRUMP SECOND TERM, ONE OF THE BROADER QUESTIONS

OBSERVERS WILL BE ASKING IS HOW MUCH OF WHAT HE HAS OFFENDED

WILL BE TURNED AROUND. HOW MUCH CAN BE PUT BACK IN THE

BOTTLE, AS IT WERE? SOME THINGS THAT WORK IN CRETE

FOR EXAMPLE THE EAST WING -- SOME THINGS THAT WERE CONCRETE,

FOR EXAMPLE, THE EAST WING THAT PRESIDENT TRUMP TORE DOWN TO

BUILD HIS BALLROOMS, THAT'S NEVER COMING BACK.

THEIR PHYSICAL THINGS THAT PRESIDENT TRUMP CHANGE IN

WASHINGTON THAT WILL NEVER CHANGE.

ON A POLICY LEVEL CERTAINLY SOME THINGS CAN BE REVERSED,

BUT THE RELATIONSHIP DOESN'T JUST GO BACK.

CANADA HAS MADE CLEAR, BOTH THE QUOTES THAT I WAS REFERENCING

FROM THE PRIME MINISTER EARLIER AND THE ONES THAT YOU WERE

REFERENCING, CHRISTINA, SUGGESTS THAT THIS IS A COUNTRY

AND THE LEADERSHIP OF A COUNTRY THAT DON'T WANT TO RISK JUST

WAITING TO SEE WHO SUCCEEDS PRESIDENT TRUMP AND WHETHER

THAT RELATIONSHIP, WHETHER THAT FRIENDSHIP GOES BACK TO WHERE

IT WAS BEFORE OR WHETHER THIS IS A MORE PERMANENT RIFT.

IN SOME WAYS CANADA IS ACCEPTING/STATING THAT THIS IS

A MORE PERMANENT RIFT AND REACTING ACCORDINGLY WITH ITS

POLICIES. DAVID: JONATHAN CAP ON THE TOOLKITS

THE TREASURY SECRETARY HAS AT HIS DISPOSAL, HE FLOATED HE HAD

ANOTHER WHEN DEALING WITH IRAN -- I WILL READ A TWEET THAT HE

FIRED OFF THIS WEEK QUOTING WITH THE PRESIDENT SAID ABOUT

AN ECONOMIC D-DAY COMING VERY WRONG, SAYING ANY REMAINING

TIED TO TEHRAN WILL HASTEN THE NATION'S ECONOMIC OBLIVION,

WHETHER THAT TYPE BE PURPOSEFULLY CONSTRUCTED OR

WILLFULLY IGNORED. WE ARE WAITING FOR DETAILS ON

INTERVENTIONS FROM THE TREASURY SECRETARY WHEN IT COMES TO THE

BOND MARKET AND DETAIL ON THE WAY THAT THE ADMINISTRATION

PLANS TO TIGHTEN THE SCREWS ON IRAN FURTHER.

HOW DO YOU THINK ABOUT THE RAMIFICATIONS OF ADDITIONAL

SANCTIONS, PRESUMABLY, ON IRAN AND HOW THAT WOULD RIPPLE

THROUGH THE GLOBAL ECONOMY AND WHAT THAT WOULD MEAN IF THE

ADMINISTRATION TOOK A NEW TACK TOWARDS CHINA, WHICH SEEMS THE

ONLY VIABLE PATH THEY CAN USE TO TIGHTEN THE SCREWS? JONATHAN:

WHAT I KNOW DOMESTICALLY AS THIS ADMINISTRATION'S TOP

PRIORITY -- OR AT LEAST WHAT I THINK THE ADMINISTRATION'S TOP

PRIORITY SHOULD BE -- IS AFFORDABILITY.

AGAIN, WE SEE THEM TIME AND AGAIN TRYING TO ADDRESS THIS

THROUGH THESE BACKDOOR POLICIES, LITTLE INTERVENTIONS

AND THINGS. WITH THE ADMINISTRATION SHOULD

BE CONCERNED WITH ARE THE LEVERS IT CAN PULL ON.

OBJECTIVELY, ALL OF THESE GEOPOLITICAL ENTANGLEMENTS

TOGETHER WITH TARIFFS ARE ADDING A MODICUM OF UPWARD

PRESSURE TO INFLATION.

IT IS TRUE THERE WAS SOME UNNECESSARY HANDWRINGING ABOUT

HOW BAD THE INFLATION COULD GET AFTER THE TARIFFS AND INITIALLY

WHEN WE SAW THE IRAN CONFLICT BEGIN -- THERE WERE SOME

HYPERBOLIC LANGUAGE AND PEOPLE SAYING NONE OF THAT CAME TRUE.

WOULD WE HAVE TO DO HERE IS WE HAVE TO THINK ABOUT THE

COUNTERFACTUAL. IF WE WERE NOT IN IRAN RIGHT

NOW AND HADN'T DONE TARIFFS, WE WOULD PROBABLY BE LOOKING AT

INFLATION IN THE UNITED STATES OF AMERICA IN THE LOW 2'S.

PROBABLY LONG END BOND YIELDS THAT WOULD BE SAID -- THAT

WOULD BE SUBSTANTIALLY LOWER. IF THE ADMINISTRATION REALLY

WANTS TO ADDRESS THESE ISSUES, THAT'S A GREAT PLACE TO START.

CHRISTINA: THE NATIONAL DEBT SURPASSED $40

TRILLION THIS WEEK. AS WE TALK CONSTANTLY ABOUT

REPUBLICANS TRYING TO SHOW THEY ARE DOING ENOUGH TO BRING DOWN

PRICES AHEAD OF THE MIDTERMS, I WANT TO PLAY SOME SOUND ON THAT

ISSUE.

>> THE NATIONAL DEBT, AS YOU KNOW IT SURPASSED $40 TRILLION.

HAVE YOU BEEN DISCUSSING WHAT TO DO ABOUT THAT? PRES. TRUMP:

I HAVE. IT'S BEEN A PROBLEM FOR 35

YEARS THAT WE HAVE NOW THAT WE'VE NEVER HAD BEFORE.

WE HAD A PRETTY GOOD PIECE OF IT, YOU KNOW.

WE HAD TREMENDOUS GROWTH. THE WAY YOU TAKE CARE OF DEBT

IS WITH GROWTH AND WE HAVE TREMENDOUS GROWTH.

WE'VE NEVER HAD GROWTH LIKE WE HAVE RIGHT NOW.

THE GROWTH WILL TAKE CARE OF THAT VERY EASILY. CHRISTINA:

WILL THE GROWTH TAKE CARE OF IT AND WILL IT TAKE CARE OF IT IN

TIME FOR VOTERS TO GO TO THE POLLS IN NOVEMBER? JEFF:

CERTAINLY NOT BY NOVEMBER BUT THAT HAS BEEN PRESIDENT TRUMP'S

ARGUMENT FOR SOME TIME. IT IS KIND OF A CLASSIC EXAMPLE

OF THE DISAGREEMENT BETWEEN DEMOCRATS AND REPUBLICANS ON

DEBT AND HOW TO DEAL WITH IT.

THE TAX CUTS, DEMOCRATS WOULD ARGUE, PRESIDENT TRUMP USHERED

IN DURING THIS TERM AND DURING HIS FIRST TERM HAVE CONTRIBUTED

TO THAT IN A WAY THAT THEY THINK -- THAT THEY WOULD ARGUE

IS UNSUSTAINABLE. HE HAS ARGUED IN THAT CLIP AND

ELSEWHERE THAT THE TAX CUTS ARE GENERATIVE TO THE ECONOMY, AND

THAT IS ONE REASON WHY HIS POLICIES HAVE FOCUSED ON THAT.

I WOULD STAND BACK AND LOOK AT THAT ANSWER AND TO LOOP IN THE

CONVERSATION WE WERE HAVING ABOUT SEC. BESSENT, WHICH IS

BOTH MEN -- THAT MEANS WRIT LARGE THIS ADMINISTRATION --

ARE LOOKING AT WAYS TO TRY TO UNDO OR OFFSET THE ECONOMIC

IMPACTS OF THEIR POLICIES AND PRESIDENT TRUMP'S POLICIES

BECAUSE OF THE POLITICAL RISKS THAT IT IS CREATING GOING INTO

NOVEMBER. CHRISTINA: WE WILL HAVE TO LEAVE IT THERE.

DAVID: THANKS TO BOTH OF YOU. DON, THANK YOU FOR MAKING YOUR

DEBUT. STAY WITH US. ♪

ALEXIS: THANKS FOR JOINING US ON BLOOMBERG THIS WEEKEND.

LET'S UPDATE YOU ON TOP STORIES. PRESIDENT TRUMP IS PROMISING AN

ECONOMIC D-DAY AGAINST THE IRAN THE WAR DRAGS INTO ITS SIXTH

MONTH END AS THE U.S. FACES DWINDLING STOCKPILES OF

KEY WEAPONS. FORMER U.S.

SECURITY ADVISOR JOHN BOLTON TELLS BALANCE OF POWER THAT THE

PRESIDENT HAS LOST HIS WAY WITH THE WAR.

>> THE PROBLEM WE ARE IN NOW IS THE PRESIDENT DIDN'T THINK

THROUGH WHAT HIS OBJECTIVES WERE, DIDN'T TAKE ADEQUATE

STEPS, HE HAS BEEN ON AGAIN/ON-AGAIN/OFF-AGAIN FOR

MONTHS AND I THINK THE IRANIANS SEE WEAKNESS, THEY SEE HIS

CONCERN FOR THE UPCOMING NOVEMBER ELECTIONS, AND THEY

ARE TRYING TO PLAY OFF THAT. ALEXIS: BOLTON SAYS THE U.S.

SHOULD BRING MILITARY FORCE TO BEAR TO OPEN THE STRAIT OF

HORMUZ. IRAN'S PRESIDENT IS CALLING FOR

AN END TO THE WAR SAYING THAT TEHRAN HOLDS A POSITION OF

STRENGTH AS DIPLOMATIC TALKS REMAIN STALLED.

EIGHT PEOPLE DIED YESTERDAY WHEN A SMALL PLANE CRASHED ON

ITS SECOND ATTEMPT TO LAND IN HEAVY FOG AT A REMOTE MILITARY

AIRPORT IN ALASKA. THE NATIONAL TRANSPORTATION

SAFETY BOARD SAID THE PILOTS COULDN'T SEE THE RUNWAY AND HAD

TO RELY ENTIRELY ON INSTRUMENTS AS THEY TRIED TO LAND 450 MILES

WEST OF ANCHORAGE. TWO ARMY CORPS ENGINEERS WERE

AMONG THOSE KILLED. APPLE IS CUTTING JOBS ACROSS

TEAMS RESPONSIBLE FOR THE SIRI DIGITAL ASSISTANT AND VISION

PRO HEADSET AS THE TECH GIANT FOCUSES ON NEW DEVICES AND

ARTIFICIAL INTELLIGENCE. THE CUTS AFFECT MORE THAN 200

PEOPLE. THE REVAMPED SIRI AI IS EXPECTED TO BE ROLLED OUT IN

SEPTEMBER ALONGSIDE APPLE'S NEW OPERATING SYSTEM AND I'M

LOOKING FORWARD TO A SMARTER SIRI, I HAVE TO SAY. CHRISTINA:

THIS IS WHY I AM NOT REALLY AN ADOPTER OF THESE THINGS. DAVID:

YOU'RE ALWAYS TALKING INTO YOUR PHONE. CHRISTINA:

I AM VOICE TO TEXTING. ALEXIS: MAKE SURE YOU REREAD IT BEFORE

YOU SEND IT BECAUSE THERE ARE A LOT OF TYPOS. CHRISTINA:

I WOULD NEVER SEND TYPOS, RIGHT DAVID?

CHIEF JUSTICE JOHN ROBERTS ISSUED AN INTERIM ORDER,

ADMINISTRATIVE STAY THAT WOULD GIVE THE SUPREME COURT MORE

TIME TO CONSIDER A LONGER-TERM DECISION.

JOINING US TO EXPLAIN IS GREG WHO COVERS THE SUPREME COURT

FOR BLOOMBERG NEWS. THE DECISION FROM ROBERTS, THE

ORDER, IS 64 WORDS. DAVID: CAN CONFIRM. ONE SENTENCE.

CHRISTINA: IN LAYMAN'S TERMS, WHAT DOES

THIS DO? GREG: WELL, I MEANT TO COUNT THE

WORDS, BUT I'M GLAD YOU DID THAT FOR ME BECAUSE I FORGOT.

IT'S REALLY JUST A HOLDING PATTERN.

IT GIVES THE COURT MORE TIME. WE ARE EXPECTING IN ORDER THAT

EITHER THE PRESIDENT CAN KEEP CONSTRUCTING UNTIL THE

LITIGATION IS OVER OR HE HAS TO STOP AT LEAST WITH THE ABOVE

GROUNDWORK. WHO WILL PROBABLY HAPPEN IS WE

WILL GET THAT ORDER BUT NOT UNTIL NEXT WEEK SOMETIME.

FOR THE TIME BEING, THE STATUS QUO PREVAILS, AND THAT MEANS HE

CAN KEEP BUILDING AND BUILDING QUICKLY. DAVID:

TALK ABOUT THE ART IS MADE ON BOTH SIDES.

IT SEEMS LIKE A FLURRY OF PAPERWORK. THE NATIONAL TRUST

= HISTORIC PRESERVATIO OF THE UNITED STATES COME IN A

STATEMENT THEY SAID THEY REITERATED THE ADMINISTRATION

HAS NO UNILATERAL LEGAL AUTHORITY, CONSTITUTIONAL,

STATUTORY, OR OTHERWISE TO BUILD A BALLROOM ON THE SIDE OF

THE NOW DEMOLISHED EAST WING UNLESS CONGRESS EXPRESSLY

APPROVES. EXPAND. WHAT IS THIS ORGANIZATION

ARGUING? GREG:

IT IS ESSENTIALLY ARGUING THAT POWER OVER FEDERAL PROPERTY

BELONGS TO CONGRESS.

UNLESS CONGRESS DELEGATES THAT AUTHORITY TO THE PRESIDENT HE

CAN'T DO THIS SORT OF THING. HE CAN'T BUILD, CAN'T SPEND

MONEY TO CONSTRUCT SOMETHING. THAT IS THE UNDERLYING QUESTION.

THERE ARE A COUPLE OF DIFFERENT STATUTES INVOLVED.

THEN THERE IS ANOTHER QUESTION THAT THE PRESIDENT IS USING TO

SAY THIS

GROUP, DESIGNED TO PROTECT THE COUNTRY'S ARCHITECTURAL AND

CULTURAL HERITAGE, DOESN'T HAVE LEGAL STANDING TO SUE BECAUSE

THEY HAVEN'T BEEN HARMED BY THIS.

THE SUPREME COURT IN GENERAL IS RESTRICTIVE WHEN IT COMES TO

SOMEBODY SAYING WE WANT TO SUE BECAUSE WE DON'T LIKE HOW

SOMETHING LOOKS. THAT IS WHAT THE ADMINISTRATION

SAYS IS GOING ON HERE. CHRISTINA:

IF THE COURT WERE TO DECIDE THEY DON'T HAVE STANDING, ARE

THERE OTHER POTENTIAL LITIGANTS IN THE WINGS WAITING TO REFILE?

OR IS THIS PROBABLY GOING TO BE THE END OF THIS FOR NOW IF THE

COURT DOES GO AHEAD WITH IT? GREG:

IT IS PROBABLY GOING TO BE THE END OF IT.

REALLY, EVEN IF THE COURT -- I MENTIONED THE STAY THEY ARE

SEEKING IS JUST WHILE THE LITIGATION GOES FORWARD.

THE ADMINISTRATION SAID THIS BALLROOM IS 65% COMPLETE.

THEY HAVE ESSENTIALLY SAID IT HAS GONE SO FAR THAT IT WOULD

BE IMPOSSIBLE TO TAKE IT DOWN AT THIS POINT.

CERTAINLY, IF THE SUPREME COURT SAYS YOU CAN KEEP BUILDING FOR

ANOTHER X NUMBER OF MONTHS UNTIL THE LEGAL FIGHT

CONCLUDES, IT IS GOING TO BE SO FAR ALONG THAT IT WILL BE

REALLY, REALLY HARD TO IMAGINE A COURT COMING ALONG AND SEEING

NOW YOU HAVE TO TAKE IT DOWN. CHRISTINA:

IS THAT ALMOST DODGING THE ISSUE, THEM KNOWING THAT WILL

BE THE CASE IF THEY GRANT THE STATE, IT WILL BE BUILT AND IT

WILL BE LIKE, IT IS COMPLETE AT THIS POINT, WHAT ARE WE GOING

TO DO? GREG: THAT IS THE CRITICISM.

THAT'S THE CRITICISM THE NATIONAL TRUST IS MAKING AND

OTHER OPPONENTS OF THE BALLROOM. WITHOUT THE PRESIDENT IS

CHARGING STRAIGHT AHEAD. IN THE ADMINISTRATION'S FILING

THE OTHER DAY THEY SAID, WE ARE BUILDING -- WE HAVE 250 WORKERS

OUT THERE GOING 20 HOURS A DAY, SEVEN DAYS A WEEK.

YES, THAT IS THE CRITICISM THEY ARE MAKING.

SUCH THAT THERE IS NOTHING THE COURTS CAN DO EVEN IF THEY

CONCLUDE THAT THE PRESIDENT IS ACTING ILLEGALLY. DAVID:

IT IS A THING TO BEHOLD. IT HAS BEEN A FEW MONTHS SINCE

I'VE BEEN DOWN THERE BUT I HAVE SEEN FEW CONSTRUCTION SITES

WHERE THEY ARE MOVING WITH MORE CELERITY.

BEYOND, WE GOT THE 2:1 DECISION THAT LED TO THIS COMING BEFORE

THE SUPREME COURT. AS YOU LEAFED THROUGH THAT

DECISION, WHAT DID YOU LEARN ABOUT THE WAY THE COURT

APPROACHED THIS ISSUE? GREG:

FIRST OF ALL, IT WAS TWO DEMOCRATIC OPPONENT JUDGES AND

THE MAJORITY REPUBLICAN OPPONENT JUDGE IN DISSENT.

IT IS ANOTHER ONE OF THESE ISSUES THAT IS DIVIDING THE

JUDICIARY ALONG IDEOLOGICAL LINES.

THAT STANDING ISSUE THAT WE WERE TALKING ABOUT SEEMS TO BE

THE BIGGEST STICKING POINT. THAT IS ALSO SOMETHING THAT

COMMENTATORS HAVE POINTED TO THAT MAY BE IF THE

ADMINISTRATION GETS THE STAY THAT MAY BE THE REASON LESS

THAN A COURT SAYING THEY ACTUALLY HAVE THE AUTHORITY.

CHRISTINA: THERE ARE TWO OTHER ISSUES ON

THE EMERGENCY DOCKET. WANTING THINK IS A LITTLE

COMPLICATED FOR US, BUT I DO WANT TO ASK YOU ABOUT THESE

MAIL-IN VOTING CASES. ALABAMA V CALIFORNIA AND TRUMP

E CALIFORNIA. WHAT ARE THESE ABOUT TO ARE WE

EXPECTING TO GET SOME KIND OF DECISION STAYS, WILL WE SEE

ACTION ON THEM SOON? GREG: I'VE BEEN EXPECTING ACTION ON

THAT FOR ABOUT TWO POINT FIVE WEEKS NOW.

IT HAS BEEN FULLY BRIEFED AND WAITING.

THE EXECUTIVE ORDER THAT YOU MAY RECALL FROM THE PRESIDENT

THAT WOULD USE THE POSTAL SERVICE TO LIMIT THE

AVAILABILITY OF A MAIL-IN BALLOTS, ESSENTIALLY THE POSTAL

SERVICE WOULD COME UP WITH A LIST OF ELIGIBLE CITIZENS AND

WOULD SEND BALLOTS ONLY TO THOSE PEOPLE.

THAT IS ON HOLD BECAUSE OF A FEDERAL DISTRICT JUDGE'S RULING.

WE ARE RAPIDLY GETTING TO THE POINT AND MAY BE PASSED TO THE

POINT WHERE IT IS TOO LATE TO TRY TO PUT THE SYSTEM IN PLACE

EVEN IF THE SUPREME COURT WERE TO SAY IT IS OK.

THE ADMINISTRATION TOLD THE SUPREME COURT WHEN IT FILED

THAT WE NEED TO HAVE THIS SYSTEM UP AND RUNNING BY EARLY

TO MID AUGUST. WE ARE OBVIOUSLY FAST THAT NOW.

EVEN THE THE SUPREME COURT WERE TO GRANT THE ADMINISTRATION THE

STATE IS SEEKING, THERE STILL A BUNCH OF OTHER PROCEDURAL STUFF

THAT HAS TO HAPPEN BEFORE IT CAN KICK IN, INCLUDING THE

POSTAL SERVICE ACTUALLY ISSUING THE RULE THAT WOULD BE ENFORCED

HERE. DAVID: THE MINUTE WE HAVE LEFT, WANT

TO ASK ABOUT WHAT WE LEARNED OVERNIGHT, CAN THE -- THE U.S.

AND CANADA WALKING AWAY FROM TRADE TALKS ARE NOW IN PLACE

THE TARIFFS THE ADMINISTRATION PUT IN PLACE BASED ON THE

SMOOT-HAWLEY ACT OF 1930, WHICH KICKED OFF THE STERLING MOMENT

IN OUR NATIONS HISTORY. WE'VE BEEN THROUGH THE

CHALLENGE OF THE IEP TARIFFS IN THE DECISION FROM THE SUPREME

COURT, WHAT IS YOUR ASSESSMENT THROUGH THE LEGAL FOUNDATION ON

WHICH THE ADMINISTRATION'S MAKING THIS NEXT MOVE? GREG:

THERE WILL BE A CHALLENGE TO THESE TARIFFS, MAY BE MULTIPLE

CHALLENGES. THE BIG THING TO REMEMBER IS

WITH THE SUPREME COURT DECISION THAT WAS A DIFFERENT STATUTE

THAT NEVER MENTIONED THE WORD TARIFFS.

THE QUESTION WAS, DOES THE PRESIDENT HAVE AUTHORITY TO

IMPLEMENT TARIFFS UNDER THIS LAW AND OF THE SUPREME COURT

SAID NO. THIS IS A STATUTE THAT DOES

TALK ABOUT TARIFFS. THE QUESTION IS WHETHER THE

PRESIDENT IS IMPOSING THESE TARIFFS IN THE RIGHT WAY.

IT'S A VERY DIFFERENT LEGAL QUESTION AND IT'S POSSIBLE THE

ANSWER WON'T BE BLACK-AND-WHITE. IT MAY BE THAT SOME OF THESE

TARIFFS THAT HE HAS IMPOSED ARE ALL RIGHT AND SOME ARE NOT.

CHRISTINA: THANK YOU. OUR SUPREME COURT CORRESPONDENT.

WE WANT TO KNOW QUICKLY, WHAT IS THE VENDING MACHINE BEHIND

YOU? DAVID: GOOD FOR ARTWORK, PLANT, WHAT

IS IN THE VENDING MACHINE? JEFF: IT IS ENTITLED SUPREME COURT

JUSTICES, PICTURES OF JUSTICES AS EARLY -- I GUESS LATE --

2000 AND FIVE, BEFORE JUSTICE ALITO JOINED THE COURT BUT

AFTER CHIEF JUSTICE ROBERTS DRAWING TO THE COURT.

I GOT IT FROM A FRIEND AND I'M PRETTY SURE IT IS THE ONLY

GUMBALL MACHINE LIKE THAT. CHRISTINA: I HAVE NO NOTES.

LOVELY TO SEE YOU. DAVID:

JUST A FASCINATING THING TO WATCH.

THE ADMINISTRATION HUNG TO REBUILD THE TARIFFS THEY PUT IN

PLACE AND PICKING UP ON -- THE ADMINISTRATION GOING FORWARD TO

REBUILD THE TARIFF THEY PUT IN PLACE AND PICKING UP ON THE

LITIGANTS THAT HAVE CHALLENGED THESE TARIFFS, SMALL

BUSINESSES, WHO HAVE GONE UP AND TRY TO GET THEM REMOVED.

FASCINATING TO SEE WHAT HAPPENS. CHRISTINA:

WE WILL TALK TO INDUSTRY FOLKS WHO WILL BE HEAVILY IMPACTED BY

THIS. DAVID: LIQUOR IS FRONT AND CENTER.

CHRISTINA: SOMETHING COMPLETELY DIFFERENT,

NORTH KOREA. NORTH KOREA RAKED IN AS MUCH IS

22 BILLION DOLLARS IN FOREIGN EARNINGS OVER THE PAST FEW

YEARS DESPITE GLOBAL SANCTIONS. HOW IS KIM JONG-UN DOING IT AND

WHY IS A RICHER NORTH KOREA POTENTIALLY MORE DANGEROUS?

THAT IS THE SUBJECT OF A NEW BLOOMBERG WEEKLY DOCUMENTARY.

>> NORTH KOREA. IT IS A BIT OF AN ENIGMA.

A SEALED OFF SOCIETY ON THE DOORSTEP OF A GLOBAL SUPERPOWER.

A MINUSCULE ECONOMY, BUT A NUCLEAR ARSENAL THAT COMMANDS

GLOBAL ATTENTION.

AND DESPITE A MOUNTAIN OF INTERNATIONAL SANCTIONS

DESIGNED TO CRUSHI IT, THE KIM REGIME HAS BEGUN TO THRIVE.

>> THE NORTH KOREAN GOVERNMENT IS IN A STRONGER POSITION THAN

AT ANY POINT OVER THE LAST 35 YEARS.

>> FOLLOWING A BRIEF SURGE IN 2016 TRIPLING YOU IN SANCTIONS

AND PANDEMIC LOCKED OUT OF THE ECONOMY INTO A PROLONGED SLUMP.

BY 2020 THREE, SOMETHING CHANGED AND THAT THE REGIME

OVERSAW RAPID GDP GROWTH.

>> NORTH KOREA'S TRADE OVERALL, REGIME REVENUE SOURCES HAVE

SHIFTED SIGNIFICANTLY. A RICH NORTH KOREA HAS THE

POTENTIAL TO BE A MUCH LARGER THREAT.

>> IF THE WORLD SEES KIM JONG-UN AS THE LONELY DICTATOR

OF THE HERMIT KINGDOM, HIS RECENT SCHEDULE TELLS A VERY

DIFFERENT STORY.

>> AN AMAZING COMEBACK STORY.

YOU ARE SEEING HIM MORE POWERFUL ECONOMICALLY,

MILITARILY, POLITICALLY.

>> HIS NEWFOUND CASH IS FUNDING A MASSIVE MILITARY BUILDOUT AND

THE KIM DYNASTY FOR ANOTHER GENERATION, POTENTIALLY IN THE

HANDS OF HIS YOUNG DAUGHTER. HOW DID ONE OF THE MOST

ISOLATED AND HEAVILY SANCTIONED REGIMES ON EARTH PULL OFF A

MULTIBILLION-DOLLAR ECONOMIC TURNAROUND? DAVID:

A FASCINATING FILM. WATCH IN FULL ON

BLOOMBERG.COM/VIDEOS. WE WILL TALK WITH THEM TOMORROW

ABOUT SOME OF THE BROADER ISSUES AT PLAY WHEN IT COMES TO

NORTH KOREA'S INFLUENCE. CHRISTINA:

WE ARE BACK TO NORTH KOREA AGAIN THIS WEEK AFTER THE

PRESIDENT ANNOUNCED THE CANCELLATION OF SOME OF THE

DRILLS AND WHAT THE POLICY MIGHT BE GOING FORWARD. DAVID:

THE U.S. AND CHINA NECK AND NECK IN THE

ARTIFICIAL INTELLIGENCE RACE COMING UP ON BLOOMBERG THIS

WEEKEND, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG.COM.

CHRISTINA: FOR NOW WE ARE NOT AI AND WE

WILL BE HERE WHEN YOU COME BACK. ♪

ALEXIS: THANKS FOR JOINING US LIVE ON

BLOOMBERG THIS WEEKEND, LET'S UPDATE YOU ON TODAY'S TOP

STORIES. PRESIDENT DONALD TRUMP'S 50%

TARIFFS ON SOME CANADIAN GOODS ARE NOW IN EFFECT AFTER THE U.S.

AND CANADA FAILED TO REACH A LAST DITCH TRADE DEAL.

THE NEW TERRORIST TARGET $20 MILLION WITH THE PRODUCTS FROM

HOCKEY STICKS TO WINE. CANADA PROMISES TO MATCH THE

TARIFFS DOLLAR FOR DOLLAR. BOTH U.S.

AND CANADIAN OFFICIALS BLAME THE OTHER SIDE FOR THE TRADE

TALKS FOLLOWING THROUGH. TIKTOK HAS AGREED TO PAY 400

MILLION DOLLARS TO THE U.S. TO END A LAWSUIT ALLEGING ITS

PLATFORM VIOLATED CHILDREN'S PRIVACY.

THE 2020 FOUR LAWSUIT BY THE DEPARTMENT OF JUSTICE ALLEGED

TIKTOK AND ITS PARENT COMPANY BYTEDANCE COLLECTED DATA ON

MILLIONS OF USERS UNDER THE AGE OF 13 WITHOUT PARENTAL CONSENT.

SINCE THE COMPLAINT THE U.S. GOVERNMENT SINCE TIKTOK HAS

UNDERGONE SIGNIFICANT CHANGES TO ITS OWNERSHIP, MANAGEMENT,

AND PRIVACY PRACTICES. THE U.S. OPEN KICKS OFF TOMORROW IN NEW

YORK CITY, BUT THIS YEAR'S TOURNAMENT WILL BE MISSING THE

WORLD'S TOP RANKED TENNIS PLAYER.

ITALY'S YANNIK SINNER PULLING OUT BECAUSE OF A KNEE INJURY.

BUT CARLOS ALCARAZ ANNOUNCED THAT HE WILL PLAY FOLLOWING A

FOUR-MONTH ABSENCE WITH A WRIST INJURY.

THIS YEAR'S TOTAL PRIZE PURSE IS A RECORD-BREAKING $108

MILLION THAT WILL BE SPLIT AMONGST THE WINNERS OF THE

GRAND SLAM TOURNAMENT. I WAS HOPING TO SEE SINNER AND

ALCARAZ GO FOR IT. DAVID: TICKETS ARE VERY EXPENSIVE.

ALEXIS: A LOT OF BACKLASH BECAUSE

TICKETS ARE THE MOST EXPENSIVE THEY'VE EVER BEEN. CHRISTINA:

THIS IS WHY I DON'T DO THINGS. EVERYTHING IS SO EXPENSIVE.

ALEXIS: FREE FAN WEEK STARTS THIS WEEK

AND PEOPLE ARE SAYING IT IS FREE, WHY DO I HAVE TO NEED A

TICKET THAT DOESN'T GUARANTEE YOU ENTRY? CHRISTINA:

THIS WHEN I WILL WATCH. YOU GIVE ME A HARD TIME. DAVID:

THANK YOU VERY MUCH. APPRECIATE IT.

CHINA VERSUS THE UNITED STATES AND THE BATTLE FOR AI, AND IT'S

IN CHINA IS CLOSING THE GAP. WHEN IT COMES TO USAGE AND COST

CHINA IS IN THE LEAD. CHRISTINA: THIS IS CAUSING CONCERN IN WALL

STREET -- IN WASHINGTON, WALL STREET, AND SILICON VALLEY.

OPENAI AND ANTHROPIC ARE CHASING TRILLION DOLLAR

VALUATIONS. A TEAM OF BLOOMBERG REPORTERS

HAVE DONE A DEEP DIVE INTO THIS FIERCE COMPETITION BETWEEN THE

U.S. AND CHINA ON AI AND I WANT TO

DO JUSTICE TO ALL OF THE DATA-DRIVEN RESEARCH YOU DID.

IT IS REALLY COOL. I WANT TO START WITH THIS

CHART, WHICH BASICALLY SHOWS HOW CLOSE THESE TWO COUNTRIES

ARE IN EQUIVALENCIES WITH THESE AI MODELS.

I KNOW YOU BROKE IT DOWN INTO DIFFERENT SECTORS AND TYPES IN

WHICH COUNTRY IS BETTER, BUT CAN YOU GIVE US THE TOP LINES

OF WHAT HE FOUND WHEN YOU DUG INTO CAPACITY AND USAGE OF

MODELS. AND COST. COST IS A BIG ISSUE.

>> OF COURSE. THANK YOU FOR HAVING ME.

AS WE CAN SEE FROM THE GRAPH THAT YOU SHOWED BEFORE, THE GAP

BETWEEN THE U.S. AND CHINESE TOP MODELS HAVE

BEEN NARROWING. IT WAS NARROWED FROM OVER A

YEAR TO JUST A FEW MONTHS ESPECIALLY AFTER THE RECENT

BREAKTHROUGH FROM THE KIMI K3 MODEL RELEASED IN JULY.

WE ARE ALSO SEEING THE USAGE OF CHINESE MODELS AROUND THE WORLD

INCREASING. ONE OF THE DATA POINTS THAT WE

USED WAS FROM ONE OF THE MAJOR AI ACCESS

PLATFORMS, SEEING THE USE OF CHINESE MODELS REACHED OVER 60%

IN JULY. IN THE MONTH BEFORE THE USE OF

CHINESE MODELS SURPASSED U.S. MODELS FOR THE FIRST TIME ON

THE PLATFORM.

IT'S WORTH NOTING THAT USERS DO NOT HAVE TO SEND DATA AT THE

CHINESE OR CHINESE MODELS -- CHINESE COMPANIES TO USE

CHINESE MODELS BECAUSE MOST OF THE CHINESE TOP MODELS ARE

OPEN-WEIGHT, MEANING THAT THESE MODELS CAN BE DOWNLOADED,

MODIFIED, DEPLOYED ANYWHERE NEEDED.

A LOT OF THE USE WE ARE TALKING ABOUT, ESPECIALLY THE USE OF

MODELS IN THE U.S., WE ARE TALKING ABOUT CHINESE MODELS

DEPLOYED IN DATA CENTERS, THE U.S., RUN BY U.S. COMPANIES.

DAVID: YOU'RE PUTTING MODELS THROUGH

THEIR PACES AND MY FAVORITE TEST WAS ASKING THEM TO CREATE

A FICTIONAL E-COMMERCE SITE, COFFEE SITE.

IF FAKE E-COMMERCE COMPANY.

EXPLAIN HOW EACH MODEL APPROACH TO THAT AND THE COST ASSOCIATED

WITH THAT COMPARED U.S. MODELS TO CHINESE MODELS. LUZ:

WE SEE ALL OF THE BENCHMARKS AND RANKINGS AND SCORES, BUT

IT'S DIFFICULT TO SEE HOW ACTUALLY THEY PERFORM.

WE GAPE THIS ONE PROMPT -- WE GAVE THIS ONE PROMPT TO BUILD A

COFFEE SHOP TO SOME OF THE LEADING MODELS.

WHAT WE FIND FIRST OF ALL BUILDING A E-COMMERCE WEBSITE

SEEMS TO NOT BE A DIFFICULT TASK FOR MOST OF THE MODELS.

IT'S NOT CHALLENGING FOR THE TOP ONES BUT IT'S ALSO NOT

CHALLENGING FOR THE LOWER TIER ONES.

MOST OF THEM WE HAVE FOUND ARE ABLE TO BUILD FUNCTIONAL

WEBSITES. WE ARE NOW ALSO SEEING FOR

EXAMPLE THE PRICES ARE QUITE DIFFERENT.

FOR EXAMPLE, FOR ANTHROPIC'S MODEL FABLE 5, IT WAS ABLE TO

DELIVER A VERY SOPHISTICATED WEBSITE WITHIN AN HOUR.

THE BUILD WAS ABOUT $50. THAT'S PRETTY GOOD FOR A

WEBSITE, BUT IF YOU USED CHINA'S KIMI K3 MODEL YOU CAN

BUILD THE SAME WEBSITE FOR A QUARTER OF THE PRICE.

IF YOU WANT TO SACRIFICE AND GRAPHIC DESIGN AND WAIT FOR

LONGER HOURS, YOU CAN GO EVEN BELOW FIVE DOLLARS FOR THE

WEBSITE AND HE CAN STILL WORK. DAVID:

LESS THAN A CUP OF COFFEE. CHRISTINA:

IT SOUNDS LIKE THE SHEIN VERSION OF A WEBSITE BUT THE

SHEIN VERSION IS PRETTY OK. LUZ: IT DEPENDS ON HOW FAST YOU WANT

THE RESULTS OF THE FIRST TAKEN HOW MUCH YOU WANT IT TO BE OUT

HOW MUCH YOU WANT TO PAY FOR THAT PERFECTION AND SPEED.

CHRISTINA: THERE ARE PLACES IT SEEMS LIKE

THE CHINESE MODELS ARE ACTUALLY OUTDOING THE U.S. MODELS.

CAN YOU WALK US THROUGH THE DIFFERENT CATEGORIES?

YOU LOOK AT CODING, FINANCE, BANKING SUPPORT.

WHERE ARE THE CHINESE MODELS EXCELLING? LUZ:

YES, SO IT DEPENDS ON HOW YOU USE IT AND WHICH INDUSTRY IS

MORE ADAPTED TO THE MODELS. I DON'T THINK FROM THE GRAPHICS

THAT YOU SAW IN OUR STORY THERE ARE RANKINGS OF DIFFERENT WAYS.

IF I REMEMBER CORRECTLY ON THE FINANCE SERVICE SIDE THERE ARE

MORE CHINESE MODELS LEADING IN THE TOP THREE.

IN OTHER CATEGORIES ONLY ONE CHINESE MODEL IS IN THE TOP 10.

BUT THEN CHINESE MODELS, IT IS -- IT'S REAL ADVANTAGES IN THE

PRICE BECAUSE THEY COULD BE CAPABLE ENOUGH TO ADDRESS A LOT

OF THE QUESTIONS AND TASKS THAT WE ENCOUNTER IN REAL LIFE AND

ALSO IN WORKING PLACES. SO CAPABLE ENOUGH CAPABILITY

AND ALSO THE VERY LOW PRICE, IT HAS BECOME IRRESISTIBLE FOR A

LOT OF COMPANIES TO ADOPT, INCLUDING SOME OF THE TOP U.S.

TECH COMPANIES, LIKE AIRBNB, DOORDASH AND COINBASE.

DAVID:DAVID: SOMETHING CHRISTINA MENTIONED

THAT THE TOP, THIS IS AT THE CRUCIBLE OF SOME COMPANIES

POISED TO GO PUBLIC. HOW IMPORTANT IS THE METRIC OF

BEING THE BEST IS? SIDE-BY-SIDE THEY ARE BOTH

QUITE GOOD, THE CHINESE AND U.S. MODELS.

HOW IMPORTANT IS IT FROM A BUSINESS PERSPECTIVE AND

FINANCIAL PERSPECTIVE THAT ANTHROPIC AND OPENAI MAINTAIN

THIS VANGUARD POSITION AS THEY GO INTO THEIR IPO'S? LUZ:

YEAH, I MEAN, AS OF NOW, OPENAI AND ANTHROPIC ARE STILL THE

BEST -- BUILDING THE BEST, MOST CAPABLE MODELS.

THERE IS STILL A LOT OF MONEY BEING MADE BY THEM IN THE

CURRENT MARKET. AND ALSO THE DATA THAT WE SAW,

THERE IS NOT A FULL CAPTURE OF ALL OF THE GLOBAL AI USE

BECAUSE THAT IS JUST ONE PLATFORM.

THERE ARE OTHER PLATFORMS THAT OFFER THESE SERVICES AND THE

USE OF ANTHROPIC AND OPENAI'S SERVICE IS NOT TRACKABLE

BECAUSE OF THE COMPANY. I WOULD SAY IT'S HARD TO SAY

HOW, FOR EXAMPLE -- OF COURSE, IF YOU ARE THE BEST IN THE

CATEGORY YOU ARE ALWAYS ATTRACTING MORE INVESTORS.

AT THE SAME TIME THERE ARE OTHER MARKETS TO BE TAPPED.

THOSE COMPANIES, SMALLER COMPANIES, THEY MAY NOT BE ABLE

TO PAY THAT HIGH A PRICE THAT ANTHROPIC AND OPENAI ARE

CHARGING. THEN THEY CAN CHOOSE CHINESE

MODELS WHICH ARE LIKE INCREASINGLY CAPABLE AND OFFER

MUCH LOWER PRICE AND ARE OPEN-WEIGHT SO YOU CAN DEPLOY

IT LOCALLY. THAT'S THE MARKET THAT CHINESE

MODELS ARE TRYING TO CONQUER AND ARE ALREADY SUCCEEDING IN A

LOT OF PLACES. DAVID: THANK YOU VERY MUCH.

I KNOW THAT IT'S LATE IN THE DAY THERE.

WE APPRECIATE YOU JOINING US FOR OUR MORNING IN NEW YORK.

YOU CAN CHECK OUT HER PIECE ON THE TERMINAL AND

BLOOMBERG.COM/BIGTAKE. FASCINATING TO WATCH. CHRISTINA:

I APPRECIATE THE DATA BECAUSE IT BREAKS IT DOWN FOR YOU.

IT IS A GOOD THING THAT YOU BROUGHT UP.

IT IS GOOD ENOUGH GOOD ENOUGH? WHEN IT COMES TO US THERE IS

YOU AND THEN I AM GOOD ENOUGH. DAVID:

I OPENED THE DOOR TO THAT AND I FEEL BAD THAT I DID.

YOU MAY WANT TO TRY LINKEDIN. PROFESSIONALS ARE USING THE

WEBSITE TO LINK UP AFTER THEIR 9-TO-5. BLOOMBERG.COM.

♪

CHRISTINA: WELCOME BACK TO BLOOMBERG THIS

WEEKEND OR BT DUBS. I AM CHRISTINA RUFFINI WITH THE

DAVID GURA AND ALEXIS HAS STORIES YOU MIGHT HAVE MISSED.

ALEXIS: YOU HAVE THINGS GOING WITH BT

DUBS. DAVID: I SAINT W.

PURIST. MORE SYLLABLES. WHATEVER -- I SAY W.

PURIST. MORE SYLLABLES. WHATEVER. ALEXIS:

GHOST JOB ADS ARE GETTING SO BAD LAWMAKERS WANT TO BAN THEM.

DAVID: WHAT IS A GHOST JOB? ALEXIS:

YOU SEE A GREAT JOB, THIS COULD BE AMAZING. YOU APPLY.

YOU DO THE COVER LETTER, THE RESUME SPECIFICALLY FOR THAT

JOB. CRICKETS. YOU HEAR NOTHING. MAYBE YOU WILL SEE THAT AD

REAPPEAR MONTHS LATER. ULTIMATELY YOU FIND OUT THE

COMPANY -- IF YOU ARE ABLE TO FIND OUT -- NEVER ACTUALLY

FILLED THE POSITION. CHRISTINA: WHAT'S THE POINT? WHY POST IT?

ALEXIS: THERE ARE THOUGHTS. SOME SAY THAT IS TO BUILD A

PIPELINE FOR JOBS THAT MAY OPEN UP SOME DAY. DAVID:

MAY IT WOULD LEAD TO SOMETHING? ALEXIS:

OR MAYBE THEY REAL IN THEIR DREAM CANDIDATE.

CYNICS SAY THAT EMPLOYERS ARE POSTING FAKE ROLES TO CONVINCE

INVESTORS AND EMPLOYEES THAT THEY ARE HEALTHY, GROWING, OR,

GET THIS, THEY WANT TO COLLECT DATA, SO THEY PUT JOB POSTINGS

OUT THERE. DAVID: IT IS A DATA GRAB. ALEXIS:

ONE IN FIVE JOBS ADVERTISED ON JOB BOARDS LIKE LINKEDIN ARE

GHOST JOBS. LAWMAKERS IN NEW YORK AND

PENNSYLVANIA ARE PROPOSING BILLS THAT WOULD REQUIRE

EMPLOYERS TO LIST HIRING TIMELINES AND THEN THEY WOULD

HAVE TO REMOVE THAT JOB ONCE IT HAS BEEN FILLED.

TEXAS' ATTORNEY GENERAL IS INVESTIGATING LINKEDIN.

THEY SAY THEY ARE PROFITING FROM THESE FAKE JOB POSTINGS.

CHRISTINA: CHARGE PER POST. THAT'S

INTERESTING. I TELL YOUNG PEOPLE IF THEY ARE

COLD APPLYING TO NEVER JUST SEND IN AN RESUME.

FIND SOMEONE, EMAIL SOMEONE, MAKE A CONNECTION, EVEN IF YOU

CAN JUST MAKE SURE SOMEONE LOOKS AT YOUR RESUME. DAVID:

KNOCK ON THEIR DOOR? CHRISTINA: I'VE DONE THAT. ALEXIS:

SEND TO SOME PIZZAS. CHRISTINA: I'VE NEVER DONE THAT. ALEXIS:

ANOTHER LINKEDIN RELATED STORY FROM THE JOURNAL.

LINKEDIN HAS ACCIDENTALLY BECOME A DATING SITE DESPITE

ITS NO ROMANCE RULES. DAVID: NO ROMANCE RULES?

CHRISTINA: I KNOW IT'S COMING MY WAY, I'M

BRACING. ALEXIS: IT IS A PUBLIC FACING PLATFORM.

YOU HAVE A CLEAR HEAD SHOTS, VERIFIED, YOU KNOW PEOPLE --

HOW AMBITIOUS ARE YOU? HOW MANY JOBS HAVE YOU CHANGED?

DAVID: SOUND GLORY RANGE. ALEXIS:

ONE IN FOUR PROFESSIONALS FOUND USING LINKEDIN AS A DATING TOOL

CAN BE ACCEPTABLE. DAVID: 25%. I KEEP REITERATING THOSE.

ALEXIS: 22% HAVE RESPONDED TO SOMEONE

ON LINKEDIN WITH ROMANTIC INTENT. CHRISTINA:

CAN CONFIRM, THAT IS SOMETHING THAT HAPPENS. ALEXIS:

THERE IS A DATING COACH IN THIS ARTICLE WHO SAYS IT'S NOT BAD

NEWS TO DO THIS, BUT YOU HAVE TO HAVE SOME DECORUM.

THEY SAY PICKUP LINES TO AVOID. ARE YOU SINGLE?

I HOPE THIS ISN'T TOO WEIRD, BUT -- AND THE ALWAYS CREEPY,

YOU'RE GORGEOUS. CHRISTINA: I'VE GOTTEN MANY "I HOPE THIS

ISN'T TOO WEIRD, BUT --" DAVID: TRULY THERE IS AN AI PROMPT

THAT CAN DO THIS FOR YOU. CHRISTINA:

PEOPLE ARE USING AI PROMPTS TO CHECK ON DATING APPS. ALEXIS:

THAT DEFEATS THE PURPOSE OF GETTING TO KNOW THE PERSON.

CHRISTINA: IT IS GOOD TO KNOW THE PERSON

YOU'RE GOING OUT WITH IS GAINFULLY EMPLOYED. ALEXIS:

THE NEW YORK TIMES. THIS IS THE HEADLINE.

I'VE HIT MY LIMIT. SOME NEW YORKERS OPT FOR FUN AT

HOME TO SAVE MONEY. CHRISTINA: WE WERE JUST TALKING ABOUT THIS

WITH THE 14 BEFORE WE CAME ON. ALEXIS: I'M GLAD I'M WITH THE

ZEITGEIST. A LOT OF YOUNG PEOPLE LIVING IN NEW YORK CITY

-- IT HAS TO BECOME COST PROHIBITIVE TO SOCIALIZE.

ACCORDING TO THE FED, THE BOTTOM 40% OF U.S.

EARNERS HAVE LITTLE TO NO DISCRETIONARY INCOME.

BUMP THAT UP IN NEW YORK CITY. SALARIES HERE ARE NOT KEEPING

UP WITH THE NECESSITIES, NEVER MIND GOING OUT AND HAVING A

COCKTAIL. DID YOU KNOW THAT A SIMPLE BEST

TIME -- A SIMPLE PAST TIME LIKE A BASKETBALL GAME ARE GOING TO

THE MOVIES CAN BE LIKE $40? DAVID: IT CAN BE LIKE A DOMESTIC

FLIGHT IF YOU HAVE A FAMILY. CHRISTINA:

I JOKE THAT IF I STEP OUTSIDE MY APARTMENT IT WILL COST ME

$200 THESE DAYS. ALEXIS: NO JOKE.

THEY'RE CALLING IT HOUSING TANKS.

I DON'T KNOW WHERE YOU ARE GOING FOR $200.

WALKING OUT OF THE HOUSE IS LIKE $40. CHRISTINA:

I HAVE A SHOPPING PROBLEM. ALEXIS:

WHAT DO YOU DO AT A HOUSING HANG? WHATEVER MAKES YOU HAPPY.

BRING YOUR OWN DRINKS AND SNACKS, PLAY BOARD GAMES, BRING

OUT THE CARDS, DO SOMETHING.

DAVID: YATZEE. CHRISTINA:

I WAS IN LONDON, A NOTORIOUSLY EXPENSIVE CITY.

GOING OUT TO EAT AND DRINK WAS SUBSTANTIALLY LESS EXPENSIVE

EVEN WITH THE CURRENCY. YOU CAN GET A GLASS OF WINE FOR

SIX POUNDS TO EIGHT POUNDS, A NICE MEAL FOR 25 POUNDS.

IT WAS A BREATH OF FRESH AIR. IT WAS A SHOCK TO COME.

ALEXIS: A MOTHER/DAUGHTER FROM MAYSVILLE, KENTUCKY TURNED DOWN

AN OFFER TO SELL THEIR FARMLAND, WHICH HAS BEEN IN

THEIR FAMILY FOR 200 YEARS, TO A COMPANY FOR $26 MILLION.

YOU KNOW WHAT? IT IS FOR DATA CENTERS TO FUEL

AI. AND THEY SAID WE ARE NOT GOING

TO DO IT. THEY ARE SITTING TIGHT ON THEIR

FARM LAND.

DAVID: IT ISOLATES THE POLITICAL DEBATE. ALEXIS:

SOME PEOPLE ARE SELLING. WE DON'T KNOW WHO THE PERSON OR

THE COMPANY IS, BUT THIS REPORT SAYS IT IS META.

FACEBOOK'S PARENT COMPANY. CHRISTINA:

THE DEBATE USED TO BE SELLING YOUR LAND TO MINING COMPANIES

OR OIL FRACTURES AND NOW ITS DATA CENTERS. DAVID:

THANK YOU VERY MUCH. BTW AS WE CALL IT HERE -- ALL

OF US -- WEEKLY, SOME OF THE STORIES YOU MAY HAVE MISSED ON

THE BLOOMBERG TERMINAL, BLOOMBERG.COM, AND OTHER SITES.

CHRISTINA: COMING UP ON IT :00 A.M..

THE NEXT HOUR OF BLOOMBERG THIS WEEKEND STARTS NOW.

-- ON 8:00 A.M.. THE NEXT HOUR OF LIMBER THIS

WEEKEND STARTS NOW.

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

WITH DAVID GURA, CHRISTINA RUFFINI AND LISA MATEO.

THE LATEST HEADLINES, KEY ANALYSIS, BIG INTERVIEWS AND

THE STORIES THAT HIT HOME ON YOUR DAYS OFF.

♪

CHRISTINA: WELCOME BACK TO BLOOMBERG THIS

WEEKEND, IT'S 8:00 A.M. IN NEW YORK, COMING TO YOU LIVE

FROM OUR WORLD HEADQUARTERS IN MANHATTAN.

I AM CHRISTINA RUFFINI. DAVID: I AM DAVID GURA, WITH ALEXIS IN

FOR LISA'S MATTEO.

BRINGING YOU THE HOOK LATEST EVERY WEEKEND, 7:00 TO SOME :00.

A HUGE STORY, COMPOUNDING BACK ON THE NEWS WE GOT OUT OF

WASHINGTON LATE LAST NIGHT WITH THESE NEGOTIATIONS TAKING PLACE

BETWEEN THE U.S. AND CANADA FAILING.

CHRISTINA: RATHER UNEXPECTEDLY.

CANADA SAID THAT 50% -- SAID THEY WILL FIGHT BACK IF THE 50%

TARIFFS GO ACROSS. WE WILL TALK ABOUT THE

HEADLINES WITH ALEXIS. ALEXIS: THE U.S.

SLAPPING 50% TARIFFS ON $20 BILLION WORTH OF CANADIAN

PRODUCTS AFTER TALKS BETWEEN THE TWO LONG-TIME ALLIES BROKE

DOWN LATE LAST NIGHT. THE TARIFFS TAKE EFFECT

IMMEDIATELY ON HUNDREDS OF ITEMS INCLUDING PLYWOOD,

LIQUOR, ELECTRICAL EQUIPMENT AND HOCKEY GEAR.

PRIME MINISTER CARNEY PROMISES RETALIATION, SAYING CANADA WILL

MATCH THE TARIFFS DOLLAR FOR DOLLAR TO PROTECT THEIR WORKERS

AND BUSINESSES. THE TWO SIDES BLAME EACH OTHER

FOR THE CLASS IN TALKS. THE U.S. SAYS CANADA MADE 11TH HOUR

DEMANDS THAT UPENDED A DRAFT DEAL MADE EARLIER IN THE WEEK.

PRESIDENT TRUMP WAS IN SOUTH CAROLINA, MAKING A LAST-MINUTE

APPEAL FOR SENATOR DARLINE GRAHAM, HIS PICK TO REPLACE HER

BROTHER, THE LATE SENATOR LINDSEY GRAHAM. PRES. TRUMP:

WE WILL STOP THE RADICAL LEFT, DEMOCRATIC COMMUNISTS HERE IN

SOUTH CAROLINA AND ALL ACROSS THE NATION.

AND WE ARE GOING TO ELECT SENATOR DARLINE GRAHAM TO

FIGHT, FIGHT, FIGHT FOR SOUTH CAROLINA AND TO ALWAYS PUT

AMERICA FIRST. ALEXIS: VOTERS WILL DECIDE TUESDAY

WHETHER GRAHAM OR CONGRESSMAN RALPH NORMAN WILL BE THE

REPUBLICAN NOMINEE ON THE NOVEMBER BALLOT.

SUPREME COURT JUSTICE JOHN ROBERTS IS ALLOWING THE WHITE

HOUSE TO CONTINUE CONSTRUCTION ON THE $400 MILLION BALLROOM

PROJECT AT LEAST FOR NOW. ROBERTS SIGNED A TEMPORARY

ORDER ALLOWING WORK TO CONTINUE WHILE THE COURT CONSIDERS AN

EMERGENCY APPEAL FROM THE TRUMP ADMINISTRATION.

LOWER COURTS ORDERED A HALT TO THE PROJECT, FINDING IT MUST

HAVE CONGRESSIONAL APPROVAL. U.S. CATTLE RANCHERS AND THE

REPUBLICANS WHO PRESENT THEM ARE PUSHING BACK ON PRESIDENT

TRUMP'S PLAN TO ALLOW MORE BEEF TO BE TEMPORARILY IMPORTED INTO

THE U.S., TERROR FREE AND SOLD AT 25% BELOW CURRENT MIKE --

TARIFF FREE AND SOLD AT 25% BELOW CURRENT MARKET PRICES.

RANCHERS WARNED THAT INCREASING IMPORTS COULD HURT AMERICAN

RANCHERS WHO ARE SEEING RARE PROFITS.

AUTHORITIES SAY AT LEAST TWO PEOPLE WERE KILLED OVERNIGHT IN

UKRAINE BY RUSSIAN DRONE AND MISSILE STRIKES A DAY AFTER AN

ATTACK ON THE UKRAINE SHOPPING CENTER KILLED 16 PEOPLE.

RUSSIA HAS BEEN RATCHETING UP ITS BALLISTIC MISSILE ATTACKS

ON KYIV AT A TIME WHEN UKRAINE IS SHORT ON U.S.-MADE WEAPONS.

THE PRIME MINISTER IS CALLING FOR FASTER NEGOTIATIONS NOW

THAT EUROPE IS AT THE TABLE. DAVID:

NEW TARIFFS AS TRADE TALKS BETWEEN THE U.S.

AND CANADA BROKE DOWN LAST NIGHT.

CANADA FACES A 50% LEVY ON KEY EXPORTS LIKE PLYWOOD AND LIQUOR

AND EVEN HOCKEY EQUIPMENT. CANADA VOWS TO MATCH U.S.

TARIFFS DOLLAR FOR DOLLAR. CHRISTINA:

THE BREAKDOWN IN TALKS ESCALATE TENSE RELATIONSHIP -- A TENSE

RELATIONSHIP BETWEEN THE ONCE FRIENDLY NEIGHBORS.

CANADA'S PRIME MINISTER, MARK CARNEY, TOOK A HARD LINE,

SAYING CANADA HAS WHAT THE WORLD WANTS AND WILL NOT ALLOW

ANY NATION TO DETERMINE OUR FUTURE. DAVID:

THIS COMES AMID A CHAOTIC WEEK FOR THE U.S. ECONOMY.

SCOTT BESSENT ANNOUNCED THE TREASURY WOULD MORE THAN DOUBLE

ITS BUYBACKS OF U.S. DEBT IN AN EFFORT TO REDUCE

LONG-TERM BORROWING COSTS.

WE ARE JOINED BY BARRY. GREAT TO SEE YOU.

I WANT TO GET YOUR PERSPECTIVE ON THE SIGNIFICANCE OF THIS

MOVE. CANADA WALKING AWAY FROM THE

TABLE AND THE U.S. WALKING AWAY FROM THE TABLE.

WE WERE TALKING TO JONATHAN LEVEN LAST HOUR AND HE SAID

HE'S ASTOUNDED AT HOW MARKETS SEEM TO BE SHRUGGING THIS OFF.

SEVERAL YEARS INTO TRUMP TERM TO, AFTER THE FIRST TERM, THEY

ARE OPERATING LIKE THIS IS OLD HABIT AND THEY ARE NOT PAYING

AS MUCH ATTENTION TO THESE TARIFFS AS THEY MAY HAVE IN THE

PAST. BARRY: THE IEEPA TARIFFS, THE PRIOR

SET OF TARIFFS, THE A MINISTRATION LOST LITERALLY AT

EVERY LEVEL FROM THE COURT OF TRADE UP TO THE SUPREME COURT.

THERE IS NO REASON TO BELIEVE THE 338 TARIFFS WILL SURVIVE

CLOSE SCRUTINY. THIS IS IN THE CONSTITUTION,

DUTIES, TAXES, LEVIES INCLUDING TARIFFS ARE THE PROVINCE OF

CONGRESS AND CONGRESS HAS NOT DELEGATED THIS AUTHORITY.

SO, WHEN I LOOK AT WHAT CANADA IS DOING, THE ASSUMPTION IS

HEY, WE ARE JUST GOING TO RUN OUT THE CLOCK UNTIL THE SUPREME

COURT GETS AROUND TO STRIKING THESE TARIFFS AS WELL.

I THINK THAT'S WHERE THE MARKETS ARE LOOKING AT YOU ARE

STILL DOING THIS TARIFF STUFF? YOU ALREADY LOST THAT.

CHRISTINA: I FEEL LIKE THIS IS THE

FRUSTRATION I HAVE WITH THE MARKETS AND THE IRAN

ANNOUNCEMENTS WHEN THEY SAY WE ARE GOING TO GET A PEACE DEAL

AND THE MARKETS REACT AND IT FALLS APART. BUT I DIGRESS.

I HATE BONDS, THEY CONFUSE ME. I AM WORKING ON BONDS.

[LAUGHTER]

BUT, YOU HAVE A TREASURY TRYING TO BUY BACK THESE BONDS. U.S.

THAT HIT AN ALL-TIME HIGH. THIS IS A SHORT-TERM SOLUTION

FOR A LONGER-TERM PROBLEM, RIGHT?

IS IT GOING TO WORK AND IS IT GOING TO COST MORE INFLATIONARY

ISSUES FOR THE FED TO THEN TRY TO HAVE TO SOLVE?

>> THERE'S A COUPLE OF ISSUES HERE.

THE DEFICIT AND LONG-TERM DEBT, THEY ARE JUST PART OF THE ISSUE.

THE OTHER ISSUE HAS BEEN THAT WE HAVE HAD VERY PERSISTENT,

STICKY INFLATION, PRIMARILY DRIVEN BY THE COMBINATION OF A

MASSIVE FISCAL STIMULUS DURING THE PANDEMIC, WHICH WE ARE

STILL SUFFERING THAT OVERHANG, AS WELL AS A LOT OF SNAFUS WITH

THE SUPPLY CHAIN. BY THE WAY, ALL OF THE MAYHEM

AROUND TARIFFS ON, TARIFFS OFF, WHAT COUNTRY CAN SEND STUFF

WITHOUT TARIFFS AND WHAT CAN'T, HAS VERY MUCH INTERFERED WITH

THE NORMAL FLOW OF GOODS. AND SO, THAT'S MAKING INFLATION

ALL THE MORE STICKIER, TO SAY NOTHING ABOUT ENERGY PRICES AND

THE WAR. SO, THE QUESTION BECOMES WHAT

CAN THE GOVERNMENT, WHAT CAN THE CENTRAL BANK DO ABOUT IT?

YOU GUYS GOT THE ANSWER ON YOUR OWN.

SHORT-TERM, SURE, THEY CAN HAVE SOME TEMPORARY EFFECT.

BUT, THE BOND MARKET IS A $100 TRILLION GLOBAL MARKET.

THERE IS ONLY SO MUCH ANY ONE COUNTRY CAN DO TO MAINTAIN

YIELD PRICES, BOND PRICES OVER THE LONG HAUL.

THE MARKET SETS THE LONG TERM BOND YIELD, NOT THE FED, NOT

THE TREASURY. SUDAVID:

SUCH A FASCINATING MOMENT WHEN THE TREASURY SECRETARY WAS

TALKING ABOUT THIS. HE THINKS THE MARKETS

MISPLACING THE FUND OF THE BOND MARKET AT THIS TIME.

I'M WONDERING WHAT YOU THINK OF THAT AND WHAT THE TREASURY

SECRETARY HAS UP HIS SLEEVE. A LOT OF INK SPILLED.

MAYBE JUST A BROADER QUESTION I

WILL THROW TO YOU FIRST IS WHAT WE SAW AT THE INTERVENTION SAY

ABOUT SCOTT BESSENT'S ATTITUDE TOWARD THE U.S.

ECONOMY AND HIS APPROACH TO THE JOB AS TREASURY SECRETARY?

BARRY: HE'S DOING WHAT HIS JOB IS

WHICH IS TRYING TO JAWBONE THE MARKET INTO SUBMISSION AND

TRYING TO GET PEOPLE FROM -- KEEP PEOPLE FROM RECOGNIZING

THAT HEY, WE ARE IN A WEIRD SITUATION, BUT WE WILL GET PAST

IT.

THE TREASURY INTERVENTION AND THE YEN INTERVENTION IS A WAY

TO SHOW THAT HE'S IN CONTROL. THERE HAS BEEN THIS HISTORY

WITH THE WHITE HOUSE AND THE FED BEGGING FOR LOWER RATES AND

THE FED HAS A DUAL MANDATE AND INFLATION IS HALF THAT MANDATE.

SO, WHEN YOU HAVE HIGHER THAN EXPECTED PERSISTENT INFLATION,

THEY ARE NOT GOING TO DROP SHORT-TERM RATES IN THE BOND

MARKET IS GOING TO DO WHAT IT'S GOING TO DO.

BESSENT IS DOING HIS JOB. HIS JOB IS TO NOT ONLY JAWBONE

THE MARKET BUT CHEERLEAD THE ECONOMY AND SAY WE ARE DOING

FINE OVER ALL. HERE ARE THE POSITIVES AND

EVERYBODY SHOULD JUST CATCH THEIR BREATH.

EVENTUALLY RATES COME DOWN. THAT WILL HELP SHRINK THE

CARRYING COST OF THE DEBT AND EVERYTHING WILL BE FINE.

HE'S NOT COMPLETELY WRONG WHEN HE SAYS THAT.

THAT'S A LEGITIMATE ARGUMENT.

DAVID: I'M CURIOUS HOW YOU DON'T THIS

WITH THE STOCK MARKET. THERE'S BEEN SO MUCH FOCUS ON

THE BOND MARKET, BUT WHAT DOES IT MEAN FOR THE STOCK MARKET?

ARE YOU SURPRISED WE DIDN'T SEE MORE REACTION STOCKS TOWARD

WHAT THE SECRETARY TREASURY DID? BARRY:

WE ARE WITHIN A FEW PERCENT OF ALL-TIME HIGHS.

THE PAST 10, 12 QUARTERS HAS BEEN VERY CONSISTENTLY SHOWING

INCREASES IN REVENUE, PROFITS AND EVEN MORE IMPORTANTLY,

PROFIT GROWTH. THE RATE OF PROFIT.

AND IT'S NOT JUST LIMITED TO TECHNOLOGY AND AI.

YOU ARE SEEING IT PRETTY BROADLY ACROSS ALL SECTORS.

WE ARE SEEING SIGNS THAT THE HANGOVER IS STARTING TO COME

AROUND AND THE COST OF EXPENSIVE CREDIT IS HAVING AN

EFFECT. YOU ARE NEVER HAPPY WHEN YOU

SEE A COMPANY LIKE WALMART DISAPPOINT AND SAY THEY ARE NOT

SEEING THE GROWTH THEY ARE EXPECTING.

THAT IS TELLING YOU, LIKE YOU GUYS WERE DISCUSSING EARLIER,

THE BOTTOM HALF OF THE ECONOMIC STRATA IS HAVING A HARD TIME.

AND IT'S NOT JUST NEW YORK CITY, IT'S ACROSS THE COUNTRY.

THE ONE AREA WHERE I WILL DISAGREE WITH THE TREASURY

SECRETARY IS THAT NO, THE K IS NOT CLOSING.

IF YOU ARE IN THE TOP HALF OF THE ECONOMIC STRATA, YOU ARE

DOING PRETTY WELL. IF YOU ARE IN THE TOP THIRD,

YOU ARE DOING GREAT. IF YOU ARE IN THE BOTTOM HALF,

YOU ARE HAVING TROUBLE MAKING ENDS MEET.

YOU KNOW, PUTTING FOOD ON THE TABLE, PUTTING FUEL IN THE CAR,

IT'S JUST MORE AND MORE EXPENSIVE.

AND THAT ECONOMIC DEMOGRAPHIC IS HAVING A HARDER AND HARDER

TIME FINDING DISCRETIONARY MONEY TO SPEND.

AND THAT IS HAVING AN IMPACT, AT LEAST IN TERMS OF THE

CURRENT ENVIRONMENT, WHICH ON THE LABOR SIDE, HAS KIND OF

BEEN A NO HIRE, NO FIRE LABOR MARKET.

WE ARE SEEING IT MANIFEST IN RETAIL SALES. CHRISTINA:

BEFORE WE LET YOU GO, I WANT TO ASK WHAT YOUR TAKE IS ON THE

COMPETITION FOR U.S. TREASURIES WITH THESE TECH

BONDS.

IT'S SEEN AS A PRETTY SECURE INVESTMENT AND IT'S GIVING SOME

COMPETITION TO TREASURIES, ESPECIALLY IN THE SHORTER

YIELDS. DO YOU THINK THIS WILL SUSTAIN

AS A I SKEPTICISM GROWS A LITTLE BIT?

BARRY: MY SPIDEY SENSE ALWAYS STARTS

TO TINGLE WHENEVER ANYBODY SAYS IT'S NOT BACKED BY THE FEDERAL

GOVERNMENT BUT IT'S JUST AS SAFE AS TREASURIES.

NO, THESE ARE NOT AS SAFE AS TREASURIES.

HOLD ASIDE ALL THE ISSUES ON THE CIRCULAR FINANCING OR

WHATEVER YOU DON'T LIKE ABOUT AI, IT IS A CORPORATE ISSUANCE.

IT'S A COMPLEX SET OF STRUCTURES.

AND IT IS VERY SUBJECT TO TECHNOLOGICAL DISRUPTION.

THE WHOLE HISTORY OF MOORE'S LAW TELLS US THE CHIPS GET

SMALLER AND SMALLER THE MORE YOU PUT TRANSISTORS ON THEM.

THESE MASSIVE DATA CENTERS THAT ARE DOING THESE 10, 20, 30 YEAR

FINANCING, I DON'T THINK 10 TO 15 YEARS FROM NOW, THE SIZE OF

THE HARDWARE IN THE DATA CENTERS ARE GOING TO BE NEARLY

AS DEMANDING AS THEY ARE NOW. I'M WONDERING IF WE ARE

EVENTUALLY GOING TO OVERBUILD THE FOOTPRINT.

EVERY NEW TECHNOLOGY COMES WITH A WHOLE LOT OF OVER ALLOCATION,

MISALLOCATION AND WHEN YOU COME OUT THE OTHER SIDE OF THAT, YOU

END UP WITH CHEAPER, MORE AFFORDABLE TEXT.

THINK OF FIBEROPTICS THAT BECAME CHEAP AFTER

THE.COM IMPLOSION TOOK ALL THOSE COMPANIES OUT.

I WOULD NOT BE SURPRISED THAT 10 YEARS FROM NOW, WE ARE

LOOKING AT SOMETHING SIMILAR IN THE DATA STORAGE.

DAVID: GREAT TO TALK TO YOU.

ALEX MOORE IS HIS GUEST THIS WEEK.

CHECK HER OUT ON HIS PODCAST. CHRISTINA:

WE WILL TALK TO DEREK. WE HAVE BEEN SURPRISED AT THE

SOLUTION OF THESE TRADE TALKS, WHAT IT MEANS FOR CANADA AND

THE ECONOMY. I WANT TO ASK YOU HOW CANADIANS

ARE FEELING THIS MORNING. I GET THE IMPRESSION THAT WE

HAVE TRIED IT ON THE PATIENCE OF OUR NORTHERN NEIGHBOR QUITE

A BIT RECENTLY AND WE MIGHT BE GETTING SOME PUSHBACK.

>> I THINK THAT'S ACCURATE.

IT'S HARD TO FULLY SUMMARIZE THE NATIONAL MOOD AT 8:15 IN

THE MORNING.

BUT I THINK YOU COULD SAY IT IS FRUSTRATION BUT NOT NECESSARILY

GREAT SURPRISE.

EVERYBODY KNOWS THAT THERE IS A CERTAIN NEGOTIATING STYLE THE

TRUMP ADMINISTRATION BRINGS TO THE TABLE.

BRINKMANSHIP IS OFTEN A PART OF THAT.

WE HAVE SEEN ON A NUMBER OF OCCASIONS BEFORE, TALKS BETWEEN

THE U.S. AND CANADA, SPECIFICALLY ON

THESE ISSUES, GO OFF THE RAILS. LASTLY, THEY WERE MAKING

PROGRESS TOWARD A DEAL THAT WOULD LOWER TARIFFS.

AND THEN ON A THURSDAY NIGHT, PRESIDENT -- THE PRESIDENT

POSTED ON SOCIAL MEDIA THAT ALL THE TALKS WERE TERMINATED AND

HE WAS ANGRY AT THAT POINT. HE SAID -- I DON'T KNOW THAT

THE LEVEL OF SURPRISE HERE IS ALL THAT GREAT. DAVID:

WHAT HAPPENED SO MUCH AS WE KNOW?

AROUND 10:00 LAST NIGHT, TALKS WERE STILL CONTINUING.

DO WE KNOW WHAT THE PARTICULAR ISSUES WERE THAT CAUSED THESE

TALKS TO BREAK APART? IT SEEMS LIKE EACH NIGHT IS

POINTING THE FINGER AT THE OTHER FOR WALKING AWAY.

>> WE DON'T KNOW THE SPECIFICS. WE HAVE KNOWN ALL ALONG THAT IT

WOULD BE DIFFICULT TO SOLVE THE SECTION 232 TARIFF ISSUES.

THOSE ARE THE ONES THAT DEAL WITH U.S.

TARIFFS ON AUTOS AND STEEL AND ALUMINUM.

THAT'S THE BIG STICKING POINT FOR CANADA.

WHAT ARE YOU GOING TO GIVE UP

TO GET THOSE TARIFFS LOWERED , SINCE THE TRUMP

ADMINISTRATION IS NOT GOING TO TAKE THOSE TARIFFS TO ZERO.

EACH SIDE IS ACCUSED OF THROWING NEW DEMANDS OF THE

OTHER AT THE LAST MINUTE. WE DON'T KNOW YET EXACTLY WHAT

WENT ON. BUT WE KNOW WE ARE GOING TO GET

TWO DIFFERENT VERSIONS OF WHAT WENT ON LAST NIGHT. CHRISTINA:

I'M WONDERING IF, ASIDE FROM THIS ISSUE WHICH IS A HUGE

ISSUE, IF THE COMMUNE A CASE IN BETWEEN THE CANADIAN GOVERNMENT

AND WASHINGTON HAS GOTTEN ANY BETTER.

I KNOW WHEN I WAS TALKING TO FOLKS THE FIRST TIME AROUND, I

WAS GETTING CALLS FROM MEMBERS OF THE CANADIAN GOVERNMENT

ASKING ME IF I KNEW WHAT THEIR EFFECTIVE TARIFF RATE WAS GOING

TO BE BECAUSE REUTERS SEEMED TO HAVE MORE INFORMATION THAN THEY

DID. HAVE THOSE LINES OF COMMUNICATION IMPROVED AT ALL

OR IS IT STILL YOU DON'T KNOW WHAT YOU KNOW UNTIL IT IS

ANNOUNCED OVER TRUTH SOCIAL OR IN THE ROOM ? DEREK:

I THINK THE LINE OF COMMUNICATION HAS CHANGED

DRAMATICALLY AND GOTTEN MUCH CLOSER. LAST NIGHT, U.S.

OFFICIALS WERE TALKING TO US AND INDICATED THE TALKS WERE

NOT NECESSARILY ACRIMONIOUS. THERE HAVE BEEN WEEKS OF

MEETINGS AT THE VERY HIGHEST LEVELS.

JAMIESON GREER ON THE U.S. SIDE. DOMINIC, ONE OF THE MOST SENIOR

CABINET MINISTERS IN CANADA RESPONDED TO THE FILE.

THEY ARE NOW TALKING.

THAT IS A BIG CHANGE. DAVID: THANK YOU VERY MUCH FOR THIS

UPDATE ON A SATURDAY MORNING.

I'M DRAWN TO THIS LINE OF THE END OF THE PEACE WE HAVE ON THE

BLOOMBERG TERMINAL ABOUT THE DISSOLUTION OF THOSE TALKS.

THE UNIVERSITY OF CALGARY ESTIMATES THAT IF THESE TARIFFS

REMAIN IN PLACE, CANADA COULD LOSE ALMOST 90,000 JOBS.

CHRISTINA: COMING UP, WE WILL SPEAK TO THE

FORMER HEAD OF BRITISH INTELLIGENCE.

HE WEIGHS IN ON THE FUTURE OF SPY CRAFT.

THAT'S AHEAD ON "BLOOMBERG THIS WEEKEND." STICK WITH US.

♪

ALEXIS: THANKS FOR JOINING US ON BLOOMBERG THIS WEEKEND.

PRESIDENT TRUMP IS PROMISING AN ECONOMIC D-DAY AGAINST IRAN AS

THE WAR DRAGGED INTO ITS SIX-MONTH AND IS THE U.S.

FACES DWINDLING STOCKPILES OF KEY WEAPONS. FORMER U.S.

NATIONAL -- JOHN BOLTON SAYS THE PRESIDENT HAS LOST HIS WAY

WITH THE WAR.

>> THE PROBLEM IS THE PRESIDENT DID NOT THINK THROUGH WHAT HIS

OBJECTIVES WERE. HE'S BEEN ON-AGAIN AGAIN, OFF

AGAIN FOR MONTHS NOW. AND I THINK THE IRANIANS SEE

WEAKNESS. THEY SEE HIS CONCERN FOR THE

UPCOMING NOVEMBER ELECTIONS. AND THEY ARE TRYING TO PLAY OFF

THAT.

ALEXIS: COLTON SAYS THE U.S. SHOULD USE MILITARY FORCE TO

OPEN THE STRAIT OF HORMUZ. TEHRAN HOLDS A POSITION OF

STRENGTH AS DIPLOMATIC TALKS REMAIN INSTALLED.

GAVIN NEWSOM SAYS HE PREFERS A SETTLEMENT OF THE STATE

ATTORNEY GENERAL LAWSUIT OPPOSING PARAMOUNT SKYDANCE'S

ACQUISITION OF WARNER BROS. DISCOVERY, IF IT'S A GOOD DEAL.

HE HEADED TALKS BETWEEN PARAMOUNT AND THE STAKES

CHALLENGING THE $100 BILLION MERGER.

A BOARD VOTE COULD COME AS EARLY AS OCTOBER.

AND APPLE IS CUTTING JOBS ACROSS TEAMS RESPONSIBLE FOR

THE SIRI DIGITAL ASSISTANT AND THE VISION PRO HEADSET AS THE

TECH GIANT FOCUSES ON NEW DEVICES AND ARTIFICIAL

INTELLIGENCE. THE CUTS AFFECT MORE THAN 200

PEOPLE. THE REVAMPED SIRI AI IS EXPECTED TO BE ROLLED OUT IN

SEPTEMBER, ALONGSIDE THE NEW OPERATING SYSTEM IOS 27.

DAVID: TIM COOK GETTING READY FOR THE

LEADERSHIP TRANSITION.

THE FRENCH NEWSPAPER ASKED EUROPE'S TOP SPIES WHICH

COUNTRY HAS THE BEST CLANDESTINE AGENCY.

THE WINNER IS MI SIX. CHRISTINA: HOW HAS THE SPY GAME CHANGED,

IS AI MAKING THE JOB HARDER OR EASIER AND WHERE DOES THE CIA

FACTOR IN? WE SAT DOWN WITH RICHARD DEAR

LOVE, COHOST OF THE ONE DECISION PODCAST.

>>

THE UNITED KINGDOM AND MI SIX HAS, INTERNATIONAL AND WITH THE

DEPTH AND LENGTH OF EXPERIENCE WHICH IS UNMATCHED.

BEARING IN MIND, MI SIX GOES BACK TO 1999.

THERE'S NO OTHER EUROPEAN SERVICE WITH THAT DEPTH.

I'M NOT SURPRISED.

OF COURSE IT'S THE BEST. CHRISTINA: [LAUGHTER]

WHY IS HUMAN INTELLIGENCE SO IMPORTANT?

WHAT MAKES IT SO VALUABLE?

>> YOU FIND OUT THE DETAIL OF WHAT YOU'RE SEARCHING FOR BY

TALKING TO THE PEOPLE WHO HAVE ACTUALLY GOT ACCESS TO THE

DECISION-MAKING PROCESS OF THE FOREIGN GOVERNMENT.

LET’'S SAY THE CURRENT WAR IN

IRAN, I WOULD IMAGINE THAT THEY HAVE HUMAN SOURCES AMONGST THE

IRANIAN LEADERSHIP. YOU, THEREFORE, GET A MUCH MORE

INTEGRATED AND CLEAR PICTURE OF HOW LEADERSHIP OF THE IRGC IS

THINKING. INTERSECT CAN BE VALUABLE.

AND REALLY IMPORTANT.

YOU MIGHT ONLY HAVE A PARTIAL PICTURE AND DATA ANALYSIS

DOESN'T GIVE YOU THAT HUMAN DIMENSION. CHRISTINA:

IS IT GETTING HARDER TO RECRUIT AND TRAIN PEOPLE TO BE

SUCCESSFUL, OPERATIONS AGENCY? DO PEOPLE STILL WANT TO BE

SPIES? IT SEEMS LIKE IN AN ERA WHERE

EVERYBODY WANTS TO TELL EVERYBODY EVERYTHING, IS IT

HARD TO SAY TWICE MARK YOUNG PERSON -- TO SAY TO A SMART

YOUNG PERSON, YOU CAN DO A LOT OF RISKY STUFF BUT YOU CAN PUT

IT SOCIAL MEDIA? RICHARD:

I CAN HONESTLY SAY I WAS IN MI6 FOR 38 YEARS.

AND DESPITE THE DISCIPLINE, THE RESTRAINTS, THE SECRECY, I

PROBABLY NEVER HAD A BORING DAY AT WORK.

SO, THERE IS AN ATTRACTION. I THINK IT REQUIRES A SPECIAL

TYPE OF CHARACTER, SUITED TO DO THE WORK.

OF COURSE, NOT EVERYBODY IS.

CERTAINLY IN THE U.K., IT HAS MAINTAINED ITS REPUTATION.

IN SOME OTHER COUNTRIES, WHERE THE INTELLIGENCE COMMUNITY HAS

BEEN MORE POLITICIZED, I WOULD NOT SAY THAT IS NECESSARILY

TRUE. CHRISTINA: SPEAKING OF, I'M WONDERING WHAT

YOUR ASSESSMENT IS OF THE COOPERATION BETWEEN MI6 AND THE

CIA. YOU SPENT A LOT OF TIME AT LANGLEY AND THE WHITE HOUSE.

IS THAT COOPERATION AS IT USED TO BE AND DOES THE CIA HAVE A

RETENTION AND RECRUITING PROBLEM AT THE MOMENT?

RICHARD: THE LAST OF YOUR QUESTIONS

FIRST, THE CIA DOES HAVE A PROBLEM WITH RECRUITING AND

COMMITMENT. THAT'S LARGELY BECAUSE OF A

PURGE OF SENIOR OFFICERS AND THEIR DEGREE OF LOYALTY TO MAGA

REPUBLICANS. IT SHOULDN'T BE A PARTY ISSUE

BUT I THINK IT'S BECOME SO.

-- SHOULD HAVE FINISHED HIS CAREER IN LONDON.

HE HAS RETIRED, BECAUSE IT WAS

NOT CLEAR THAT HE WAS AN UNCRITICAL

MAGA REPUBLICAN SUPPORTER. THAT'S NOT GOOD AT ALL.

-- THAT'S PART OF THE DISCIPLINE OF BEING A NATIONAL

INTELLIGENCE OFFICER.

I THINK THE CIA AT THE MAINLAND CERTAINLY SEEMS TO HAVE A

PROBLEM. I GUESS THAT WILL PASS BECAUSE

IT HAS A TRADITION OF PRODUCING VERY CAPABLE FIELD OFFICERS.

CHRISTINA: WHEN YOU LOOK AT OTHER

INTELLIGENCE AGENCY OFFICERS INCLUDING THE MI6, DO THEY

TRUST THE CIA, DO THEY TRUST SHARING INTELLIGENCE WITH THE

UNITED STATES?

>> YES, I THINK THEY DO.

I WOULD SAY THAT OVER TIME, THERE HAVE ALWAYS BEEN ISSUES

OF COMPLEXITY IN BOTH SORTS OF

RELATIONSHIP -- THOSE SORTS OF RELATIONSHIPS BECAUSE THERE

COULD BE DIVERGENCE IN POLITICAL AIMS AND THERE CAN BE

PROBLEMS WHICH ARISE.

DURING MY TIME, WE WERE WORKING VERY CLOSE TO THE CIA.

IF YOU GO BACK A STEP, THERE WERE PROBLEMS BETWEEN THE U.K.

AND THE U.S. OVER THE CONFLICT IN THE

BALKANS. AND PROBLEMS AROSE WHICH WERE

MORE OF A POLITICAL NATURE. I WOULD HAVE THOUGHT THAT BOTH

SIDES WOULD BE TRYING TO MAKE THE OPERATION WORK.

BUT, SOMETIMES, YOU HAVE A VIEW IN THE WHITE HOUSE OR MAYBE YOU

HAVE A VIEW WHICH CAN CAUSE PROBLEMS. THESE RELATIONSHIPS

CAN BE QUITE COMPLICATED. AND OBJECTIVE, PARTICULARLY

SHORT-TERM ONES CAN DIVERGE. CHRISTINA:

WOULD YOU STILL RECOMMEND A CAREER IN INTELLIGENCE FOR A

YOUNG PERSON IN WASHINGTON OR IN LONDON? RICHARD:

YES, I THINK I WOULD. IF YOU ARE INTERESTED IN

GEOPOLITICS.

IF YOU ARE COOLHEADED.

IF YOU FEEL AT HOME IN FOREIGN COUNTRIES, AND YOU ARE

COMFORTABLE IN THOSE SORTS OF ENVIRONMENTS.

-- DIFFICULTIES THAT MAY HAVE

ARISEN BETWEEN WASHINGTON AND LONDON -- THESE THINGS COME AND

GO.

THE PRESENT ADMINISTRATION IN THE U.S.

WE WOULD REGARD AS SOMETHING OF AN ABERRATION. CHRISTINA:

MAYBE I MISSED MY CALLING ALTHOUGH I DO LIKE TO TALK.

I'M NOT GREAT AT KEEPING SECRETS. RICHARD:

YOU WOULD HAVE BEEN GREAT. CHRISTINA: THANK YOU.

MAYBE I WILL CIRCLE BACK. SO NICE TO SEE YOU.

THANK YOU SO MUCH. DAVID: I DON'T KNOW ABOUT THAT.

HE SAID HE WOULD BE VERY GOOD AS A CHILD, I'M NOT SURE ABOUT

THAT. CHRISTINA: HE'S A VERY POLITE MAN.

LET ME HAVE THIS. WOULD YOU HAVE MADE A GOOD SPY?

DAVID: I WOULD NOT, BECAUSE OF THE

RESTRICTIONS. I ALSO LIKE TO TALK. CHRISTINA:

I THINK THE OPERATIONS PART ARE SIMILAR TO JOURNALISM, YOU HAVE

TO GET PEOPLE TO TRUST YOU. DAVID:

WHENEVER I WATCH OLD SPY MOVIES OR READ SPY NOVELS, IT SEEMS

LIKE YOU HAD A LOT OF ANONYMITY. CHRISTINA:

I DO WONDER HOW THEY DO THAT. I WAS JUST TRAVELING.

EVERYTHING IS FACIAL RECOGNITION NOW.

EVERY THING IS DIGITAL. I DON'T KNOW IF IT'S EASIER OR

HARDER. BUT, HE WON'T TELL ME. DAVID: SWORN TO SECRECY.

VERY GOOD CONVERSATION. IT'S INTERESTING HOW HE SAID

THE RELATIONSHIP BETWEEN THE U.K. IN THE U.S.

HAS UPS AND DOWNS. CHRISTINA: A SPECIAL RELATIONSHIP OVERALL.

HERE'S SOMETHING I DON'T WANT A SPECIAL RELATIONSHIP WITH,

ROBOTS. IT'S ROBOTS AGAINST THE WORLD

AT THE WORLD HUMANOID ROBOT GAMES. YOU HEARD ME CORRECTLY.

BLOOMBERG HAS A TEAM IN BEIJING. >> ROBOTS THAT CAN SING, DANCE

AND DO KUNG FU. THAT'S AT THIS YEAR'S WORLD

ROBOT CONFERENCE IN BEIJING WHERE THOUSANDS OF COMPANIES

ARE HERE. THIS TIME, WE ARE FOCUSED ON

THE PRACTICAL USES. NOT JUST FOR HOUSEHOLDS BUT FOR

INDUSTRY. I'VE SEEN ROBOTS THAT CAN DO

THE WORK OF THE ASSEMBLY LINE WORKERS WITH MORE PRECISION.

I'VE SEEN ROBOTS THAT CAN PICK UP LAUNDRY AND PUT IT IN

WASHING MACHINES. IT'S NOT ALL SERIOUS BUSINESS.

THERE ARE ROBOTS THAT CAN PLAY PING-PONG AND TABLE HOCKEY.

ONE OF THE HIGHLIGHTS AT THIS YEAR'S FORUM IS THE KEYNOTE

ADDRESS.

-- MADE IT CHINA'S FIRST LISTED HUMANOID ROBOT COMPANY.

HE SAID HUMANOID ROBOTS COULD REACH MASS POPULARITY WITHIN A

DECADE AS MANUFACTURERS RESOLVE PROBLEMS THAT HOLD BACK THEIR

USEFULNESS.

HE SAID THE ISSUE COULD TAKE OFF IN TWO YEARS AND 80% OF THE

TASKS COULD BE COMPLETED BY ROBOTS. DAVID: WOW.

WE HAVE A LIVE VIDEO OF THIS. HUMANS, I WANT TO VERIFY THEY

ARE HUMANS IN BLACK SUITS DANCING AROUND THESE ROBOTS.

WOW, LOOK AT THE MOVES ON THAT. IT'S LESS RIGID THAN I WORRIED

IT WOULD BE. CHRISTINA: THE TECHNOLOGY, THE KINETICS.

DAVID: WHAT'S HAPPENING HERE? CHRISTINA:

WE ARE LOOKING AT ROBOTS WITH NO LEGS AND A WHEEL LIKE BASE.

THIS IS A NIGHTMARE. DAVID: FOR OUR RADIO LISTENERS HERE, I

WANT TO EMPHASIZE HOW MANY OF THEM THERE ARE.

IT LOOKS LIKE AN INDOOR TRACK, DOZENS AND DOZENS OF HUMANOID

ROBOTS. THIS IS OUR FUTURE. THE FUTURE IS NOW.

CHINA SEEMS MORE IN TUNE TO THIS THAN PERHAPS WE ARE

BECAUSE I THINK THEY'VE EMBRACED IT. CHRISTINA:

THIS ENGENDERS LESS FEAR THERE THAN IT DOES AT THIS DESK, THIS

TABLE. DAVID: THE U.S.

BOOZE BOYCOTT HAS NO END IN SIGHT.

WE WILL TALK TO THE CEO OF THE AMERICAN WHISKEY ASSOCIATION.

YOU DON'T WANT TO MISS THAT, NEXT ON "BLOOMBERG THIS

WEEKEND." ♪

ALEXIS: THANKS FOR JOINING US LIVE ON

BLOOMBERG THIS WEEKEND. I'M ALEXIS CHRISTOFOROUS.

PRESIDENT DONALD TRUMP'S 50% TARIFFS ON CANADIAN GOODS ARE

IN EFFECT AFTER THE U.S. AND CANADA FAILED TO REACH A

LAST-DITCH TRADE DEAL. THE NEW TARIFFS TARGET $20

BILLION WORTH OF PRODUCTS FROM HOCKEY STICKS TO WINE.

CANADA PROMISES TO MATCH THE TARIFFS, DOLLAR FOR DOLLAR.

BOTH U.S. AND CANADIAN OFFICIALS ARE

BLAMING THE OTHER SIDE FOR THE TRADE TALKS FALLING THROUGH.

TIKTOK HAS AGREED TO PAY $400 MILLION TO THE U.S.

TO END A LAWSUIT ALLEGING ITS PLATFORM VIOLATED CHILDREN'S

PRIVACY. THE 2024 LAWSUIT BY THE DEPARTMENT OF JUSTICE ALLEGED

TIKTOK AND ITS PARENT COMPANY, BYTEDANCE, COLLECTED DATA ON

MILLIONS OF USERS UNDER THE AGE OF 13 WITHOUT PARENTAL CONSENT.

SINCE THE COMPLAINT, THE USS TIKTOK HAS UNDERGONE

SIGNIFICANT CHANGES TO ITS OWNERSHIP, MANAGEMENT AND --

U.S. SAYS TIKTOK HAS UNDERGONE SIGNIFICANT CHANGES TO ITS

OWNERSHIP, MANAGEMENT AND PRIVACY PRACTICES.

JANIK SINNER PULLED OUT OF THE U.S.

OPEN WITH A KNEE INJURY. CARLOS ALCARAZ WILL PARTICIPATE

WITH A WRIST INJURY. THE WINNER OF THE TOURNAMENT

WILL -- THE PRIZE MONEY FOR THIS YEAR'S TERM AND IS 108

MILLION DOLLARS. THE FREEDOM 250 GRAND PRIX

TAKES PLACE IN WASHINGTON, D.C. THIS WE CAN.

IT MARKS THE FIRST INDY RACE AT THE NATIONAL MALL.

IT FEATURES A RACETRACK ZIPPING THROUGH THE NATIONS CAPITAL

LANDMARKS INCLUDING THE WASHINGTON MONUMENT.

DON'T BRING YOUR CAR OUT IN WASHINGTON, D.C. THIS WEEKEND.

DAVID: I THINK REAGAN NATIONAL IS

CLOSING AIRSPACE. WHAT ARE YOUR PEEPS SAYING?

CHRISTINA: THEY ARE NOT HAPPY. GOOD LUCK TO THEM.

AS SOMEONE WHO HAD TO BUY A TIRE INFLATOR BECAUSE ALL OF

THE POTHOLES ARE SO BAD, I HOPE THEY FIXED ALL OF THOSE ROADS

AND I HOPE IT GOES WELL. I'M HAPPY TO BE IN NEW YORK

THIS WEEKEND. DAVID: WE APPRECIATE THE UPDATE.

CHRISTINA: WE ARE SPEAKING THIS MORNING

ABOUT THE SOMEWHAT SURPRISE COLLAPSE OF THE U.S.

AND CANADA TRADE TALKS. THIS TARIFF DEBATE HAS HIT

COMPANIES HARD INCLUDING AMERICAN DISTILLING COMPANIES.

DAVID: HELPING US DISTILL, I'M GROANING AT MY OWN COMMENT,

THIS IS MICHAEL. I WANT TO ASK YOU ABOUT THE

STATE OF PLAY. WE DON'T HAVE TO GO INTO THE

DETAILS BECAUSE WE DON'T KNOW A LOT ABOUT WHAT HAPPENED WITH

THE TALKS. WHEN YOU LOOK AT THE BUSINESS

YOU REPRESENT, WHAT IS -- WHAT HAS THE LAST YEAR PLUS MEANT

FOR THEM, NOT HAVING ACCESS LIKE THEY HAD BEFORE TO THE

CANADIAN MARKET? MICHAEL: WE DIDN'T GET THE BREAKTHROUGH

WE WERE HOPING FOR, FOR AMERICAN WHISKEY PRODUCERS,

THIS REMAINS UNFINISHED BUSINESS.

FOR A YEAR AND A HALF, AMERICAN WHISKEY HAS BEEN SHUT OUT FROM

MOST OF THE PROVINCES IN CANADA. THIS IS SOMETHING THAT AFFECTS

THE AMERICAN WHISKEY SUPPLY CHAIN.

NOT JUST THE DISTILLERS, BUT ALL THE WAY DOWN TO THE GRAY

FARMERS. WE WERE HOPING FOR A BREAKTHROUGH, WE WERE HOPING TO

REGAIN ACCESS TO THE CANADIAN MARKET. AND WE WERE HOPING THE

PROVINCES WOULD ALIGN WITH THE FEDERAL GOVERNMENT AND ALLOW US

TO HAVE -- TO THE SHELVES. WE WERE LOOKING FORWARD TO

RECONNECTING WITH THE CANADIAN CONSUMER BUT THAT'S NOT

HAPPENING. CHRISTINA: HOW BIG OF A PART OF THE

BUSINESS IS THIS THAT YOU ARE LOSING, EITHER IN PERCENTAGE OR

DOLLAR AMOUNT? HOW BIG OF A HUNK OF WHAT YOU

WOULD USUALLY SELL IS NOT THERE? MICHAEL:

ACCORDING TO THE WHITE HOUSE FIGURES, IN 2024, WHEN

PROVINCIAL RESTRICTIONS WENT IN EFFECT, YOU HAD A MARKET THAT

WAS ABOUT $203 MILLION, WHEN YOU MEASURED THAT FROM MARCH OF

2024 AND IT WENT INTO EFFECT IN DECEMBER.

WHEN YOU SEE A YEAR-OVER-YEAR COMPARISON, IT WAS DOWN TO $60

MILLION. ROUGHLY A 70% DECREASE IN U.S.

EXPORTS TO CANADA.

AMERICAN WHISKEY IS ABOUT AN OVER $1 BILLION EXPORT FOR THE

U.S. ECONOMY. AT THE SAME TIME, AMERICAN

WHISKEY EXPORTS GREW BY 2.5% EVERYWHERE EXCEPT FOR CANADA.

TO PUT THINGS IN PERSPECTIVE, IT REALLY HAD AN IMPACT ON U.S.

SPIRITS IN GENERAL. DAVID: I WANT TO ASK YOU ABOUT THE

QUALITY OF CONVERSATION YOU HAD WITH AMERICAN LEADERSHIP,

CANADIAN LEADERSHIP THROUGH THIS.

I IMAGINE MANY GROUPS AFFECTED BY THESE TARIFFS HAVE BEEN

TRYING TO BEND THE EAR TO THE WHITE HOUSE AND THE U.S.

TRADE REPRESENTATIVE, TRYING TO DO THE SAME WITH THE CANADIAN

COUNTERPARTS. HOW ENGAGED HAVE YOU BEEN AND

WHAT HAVE THOSE CONVERSATIONS BEEN LIKE? MICHAEL:

WHAT'S INTERESTING ABOUT THE SPIRITS INDUSTRY IS GLOBALLY,

WE ARE VERY CONNECTED. WE SEE THIS AS ONE ECOSYSTEM.

WE ARE ALL ABOUT FAIR MARKET ACCESS, COMPETITION.

WE WANT THE WORLD'S WHISKEYS TO COMPETE.

WE REALLY DO FOCUS ON MARKET ACCESS AND FAIR COMPETITION.

AS AN INDUSTRY, WE'VE ALWAYS BEEN VERY UNITED AND ALIGNED ON

WHAT WE ARE LOOKING FOR A GLOBALLY IN TERMS OF TRADE

POLICY. YOU LOOK AT THE TRUMP ADMINISTRATION AND OUR

COUNTERPARTS IN CANADA, WE ARE OBVIOUSLY EQUALLY ENGAGED ON

BOTH SIDES.

AND WE ARE ALWAYS TAKING PART IN CONSTRUCTIVE CONVERSATIONS

AND MAKING SURE PARTIES ARE ALIGNED AND THE IMPACT WAS

KNOWN AND UNDERSTOOD ON BOTH SIDES.

THE UNITED STATES AND CANADA, WE ARE PART OF THE SAME NORTH

AMERICAN HOSPITALITY ECOSYSTEM. THIS DIDN'T JUST HAVE AN IMPACT

ON THE U.S. SIDE, IT ALSO IMPACTED THE

CANADIAN SIDE OF THINGS. SO AGAIN, THE INDUSTRY, ALWAYS

CONNECTED, ALWAYS SHARING INFORMATION.

WE ARE ALWAYS FOCUSED ON MARKET ACCESS. FOR THE U.S.

GOVERNMENT AND THE CANADIAN GOVERNMENT, THEY'VE ALWAYS BEEN

ENGAGED. REALLY, LOOKING AT THE TRADE

OFFICIALS AND PEOPLE WHO ARE DOING THE HARD WORK BEHIND THE

SCENES, THOSE LINES ARE OPEN AND COMMUNICATION WAS FLOWING.

WE HAVE RECEIVED GOOD INDICATION YESTERDAY THAT THERE

WAS PROGRESS BEING MADE.

TO HEAR THIS LATE LAST NIGHT OR EARLY THIS MORNING WAS REALLY

UNFORTUNATE. CHRISTINA: IT SEEMS TO ME YOU HAVE TWO

PROBLEMS. YOU HAVE THE POLICY ISSUE BUT THEN YOU HAVE A

BRANDING ISSUE NOW.

ALL OF THE SHOPS ARE LABELING CANADIAN MADE PRODUCTS.

AND THERE IS STILL THIS IMPETUS TO BUY CANADIAN, EVEN IF YOU

GET THESE PRODUCTS BACK ON THE SHELVES, CANADIANS ARE REALLY

ANNOYED. THEY ARE VERY MAD. DO YOU THINK YOU HAVE SOME WORK

TO DO ON THE PR FRONT TO CONVINCE THOSE FOLKS TO BUY

AMERICAN PRODUCTS WHEN THEY ARE FURIOUS ABOUT HOW THIS ALL WENT

DOWN? MICHAEL: REALLY IN ASTUTE OBSERVATION.

WHEN YOU'RE NOT ON A SHOW FOR A YEAR AND A HALF, YOU'RE OUT OF

SIGHT, OUT OF MIND. FROM A MARKETING BRANDING

SCENARIO, THAT'S NOT THE BEST PLACE TO BE IN.

IT'S ONE OF THOSE THINGS WHERE THERE IS A THREE-STEP PROCESS

THAT WE ARE FOCUSED ON. ONE IS GAINING MARKET ACCESS TO

CANADA. AND OBVIOUSLY, THAT'S WHAT WE

ARE HOPING THE NEGOTIATIONS BETWEEN PRESIDENT TRUMP AND

PRIME MINISTER CARNEY WOULD RESULT IN.

WE WERE HOPING STEP TWO WOULD RESULT IN THE PROVINCIAL

AUTHORITIES TO ALIGN WITH THE FEDERAL GOVERNMENT AND GIVE US

ACCESS TO THOSE SHELVES. AND THEN STEP THREE, THE POINT

YOU JUST MADE, IS RECONNECTING AND REUNITING WITH THE CANADIAN

CONSUMER. THAT'S PROBABLY ABOUT 50-50

RIGHT NOW. WE'VE HEARD FROM CANADIAN

CONSUMERS, A LOT OF THE BOURBON INTO THEISTS WHO ARE VERY

EXCITED TO BE ABLE TO GO TO THE STORES THIS MORNING AND

PURCHASE A BOTTLE OF AMERICAN BOURBON OR WHISKEY IN GENERAL.

OBVIOUSLY, THERE IS A GROUP OUT THERE OF CANADIANS WHO ARE

REALLY ANNOYED, DISAPPOINTED AND FRUSTRATED WITH THE

RELATIONSHIP BETWEEN THE UNITED STATES. THAT IS UNDERSTANDABLE.

ALL WEEK AS CORE IS ACCESS TO THE CANADIAN MARKET, ACCESS TO

THE SHELVES AND THE ABILITY TO REUNITE WITH THE CANADIAN

CONSUMER. TO YOUR POINT, WE KNOW THAT

WILL TAKE SOME TIME. CANADIANS SHOULD HAVE THE

CHOICE TO CHOOSE AMERICAN WHISKEY.

WE WANT ALL AMERICAN WHISKEYS TO COMPETE THERE.

THE FACT OF THE MATTER IS WE HAVE NOT BEEN ABLE TO COMPETE

BECAUSE WE BEEN KEPT OUT OF THE COMPETITION ALTOGETHER. DAVID:

LAST QUESTION. CHRISTINA HAS BEEN OUT TO

KENTUCKY TO DO A PIECE ON THE BOURBON INDUSTRY.

SO MANY PRODUCTS ARE SUBJECT TO THESE TARIFFS NOW.

WHY IS IT YOU THINK AMERICAN WHISKEY HAS BEEN SINGLED OUT IN

THE WAY THAT IT HAS? WHY DOES IT CARRY SUCH SYMBOLIC

VALUE IN THE CONTEXT OF THIS TRADE WAR?

>> AMERICAN WHISKEY IS AN ESSENTIAL CANADIAN PRODUCT.

WE LOOK AT GEORGE WASHINGTON, NOT ONLY A GREAT AMERICAN

PRESIDENT, A GREAT AMERICAN DISTILLER AS WELL.

THIS PRODUCT HAS A LONG SUPPLY CHAIN.

IT STARTS WITH AMERICAN FARMERS WHO GROW AMERICAN GRAIN.

THEN IT GOES TO LUMBER. THE INDUSTRY THAT MAKES THE

BARRELS. THEN YOU HAVE THE DISTILLERS.

THIS IS A SYMBOLIC AMERICAN PRODUCT.

WHEN YOU LOOK AT WHAT AMERICA MAKES UP IN THIS LARGER

U.S.-CANADIAN TRADE DEAL, IT'S VERY MINUSCULE. IT'S NOT A LOT.

BUT IT BECAME THE SYMBOL OF TRADE TENSION.

IT BECAME THE SYMBOL OF A DISPUTE.

THERE WAS PERFECTLY GOOD WHISKEY BEING POURED OUT INTO

THE STREETS, WHICH IS A TOTAL FIT IN MY OPINION.

IT BECAME SYMBOLIC BUT I BELIEVE IT CAN BECOME A SYMBOL

OF OUR PREPARATION AND THAT WE CAN GET BACK TO NORMAL. DAVID:

GOOD TO SPEAK TO YOU. CHRISTINA: THANK YOU SO MUCH.

COMING UP, IT STOCKS AND DOMINATION.

WE DIVE INTO HOW DA CHSUNDS HAVE BECOME ONE OF THE WORLD'S

MOST POPULAR BREEDS.

♪

CHRISTINA: WELCOME BACK. I AM CHRISTINA RUFFINI

ALONGSIDE DAVID GURA. IT'S ONE OF THE WORLD'S HOTTEST

DOG BREEDS, MADE POPULAR BY CELEBRITY'S, TICK TALKERS AND

INCREASINGLY TINY LIVING SITUATIONS. IT'S DACHSHUNDS.

DAVID: JOINING US NOW IS OUR BANGKOK

BUREAU CHIEF AND A DIOXIN OWNER. THIS IS AN AMAZING PIECE.

I ALWAYS WANTED A DACHSHUND. HOW DID YOU NOTE THIS TREND

HAPPENING IN THAILAND? THIS IS A GLOBAL PHENOMENON.

>> IT STARTED WHEN I GOT MY DACHSHUND WHEN I MOVED HERE

FROM BANGKOK. THAT WAS LATE LAST YEAR.

AND THEN I STARTED NOTICING MORE AND MORE, I WAS LIKE AM I

IMAGINING THINGS? I STARTED LOOKING INTO IT AND I

STARTED SEEING CELEBRITIES POSTING PHOTOS WITH THEIR

DACHSHUND. AARON JUDGE, THE YANKEES

CAPTAIN HAD ONE.

I'VE SEEN A LOT TIKTOKERS LOCALLY POSTING WITH THEIR

DACHSHUND. I WAS LIKE I'M NOT IMAGINING

THINGS. THEN I STARTED DIGGING THROUGH

THE DATA AND I FOUND THAT ON THE AMERICAN KENNEL CLUB 10

YEARS AGO, THEY WERE THE 13TH MOST POPULAR BREED.

AND THEN OVER THE PAST DECADE, IT'S BEEN GROWING IN POPULARITY

AND REACHED NUMBER FIVE LAST YEAR.

IN THE U.K., THERE IS A SIMILAR THING AS WELL.

OVER THE PAST DECADE, THE

NUMBER OF THE -- RATE HAS DOUBLED.

AND THEY ARE NOW THIRD. CHRISTINA:

I'VE SEEN DACHSHUNDS AROUND NEW YORK AS WELL.

THERE ARE DACHSHUND CAFES. YOU WRITE A CAFE AT A BANGKOK

SUBURB, CUSTOMERS CAN PAY $9.50 TO SPEND TIME WITH SAUSAGE DOGS.

IS THIS A SIDE HUSTLE?

>> I CAME ACROSS THIS CAFE BECAUSE I WAS ESSENTIALLY

REACHING OUT TO DIFFERENT BREEDERS HERE IN BANGKOK.

I WENT THERE AND THERE WAS THIS

-- BECAUSE THEY WEREN'T OFFICIALLY OPEN YET.

THEY OPENED FOR THE FIRST TIME IN JUNE.

IT'S NOW A MUST SEE SPOT BECAUSE THEY ARE SUPER PAC NOW.

ESPECIALLY IN THE EVENING WHERE THEY LET THE DOG RUN IN THE

YARD. THERE ARE 35 DACHSHUNDS THEY

HAVE. CHRISTINA: YOU MIGHT HAVE TO INVESTIGATE.

DAVID: ONE OF MY FAVORITE DACHSHUND

OWNERS BESIDES RANDY IS GARY STEIN GARD.

HE POSTED HIS DOG, BERNIE. HE WROTE DACHSHUNDS HAVE

APPEARED IN ALMOST ALL OF MY NOVELS.

THE TITULAR CHARACTER GETS COMPARED TO A DACHSHUND.

LET'S JUST SAY IT'S THE ULTIMATE COMPLEMENT AS FAR AS

UNCONCERN.

WHAT IS IT ABOUT THE DACHSHUND? YOU WERE ENTRANCED BY THE

BEAUTY OF THIS SMALL DOG. AS YOU TALK TO OTHER OWNERS,

WHAT IS IT THAT DRAWS THEM TO THE DACHSHUND? CHRISTINA:

THIS OTHER SMALL YUPPIE DOGS. I HAVE ONE AND IT'S NOT A

DACHSHUND. WHY DID YOU WANT ONE? >> I'VE HEARD IT DESCRIBED

SEVERAL TIMES WITH DIFFERENT OWNERS.

THEY SAY THAT THEY ARE BIG DOGS AND A SMALL BODY.

WE ARE IN A SMALL LIVING SITUATION AND A LOT OF PEOPLE

DON'T HAVE SPACE FOR A BIG DOG. BUT THEY STILL WANT THAT BIG

DOG PERSONALITY. SO THE DACHSHUND IS PERFECT.

THEY ARE A BIG DOG PACKED IN A LITTLE TINY BODY.

THEY WOULD BARK AT THINGS. THEY ARE ALSO VERY LOVING.

THEY JUST WANT TO BE CLOSE TO YOU. I HAVE TWO DOGS.

MY FIRST ONE IS A PALM SKI. HE JUST WANTS TO CLIMB INTO MY

LAP. OR AT LEAST SOME PART OF HIS

BODY NEEDS TO BE TOUCHING ME. WHEN I'M WATCHING TV OR WHEN

I'M IN BED OR GOING TO THE BATHROOM, HE JUST WANTS TO BE

THERE, TOUCHING ME ALL THE TIME. ON THE OTHER HAND, HE JUST

WANTS TO BE NEAR ME AND DOESN'T WANT TO TOUCH ME.

SEVERAL OWNERS HAVE DESCRIBED THE SAME THING TO ME THAT THEY

ARE THE MOST LOVING BREED THAT THEY HAVE EXPERIENCED.

FOR A LOT OF DACHSHUND OWNERS, THEY SAY ONCE YOU HAVE ONE, YOU

WANT TO KEEP PETTING IT.

THE OTHER THING IS DACHSHUND OWNERS TEND TO HAVE A TECHNIQUE

OF UNITY. I'VE SEEN SEVERAL GROUPS OF

DACHSHUND WALKS OR DACHSHUNDS MEET UPS.

THERE IS AN EVENT, WORLD DACHSHUND DAY IN JUNE, AND I

WENT TO THAT ONE AS WELL. CHRISTINA:

WHO DOESN'T LOVE A SAUSAGE DOG? THEY HAVE HEALTH CONCERNS.

I KNOW PEOPLE HAVE TO HAVE THESE STAIRCASES EVERYWHERE

BECAUSE THERE LONG SPINES TEND TO LEAD TO SLIPPED DISCS.

IS THAT A CONCERN, IS THAT SOMETHING PEOPLE SHOULD WORRY

ABOUT AND ADDRESS? WE ONLY HAVE 30 SECONDS.

>> THAT'S A CONCERN BECAUSE ONE IN FOUR DACHSHUNDS MAY

EXPERIENCE THAT.

WE CAN HELP THAT BY NOT LETTING THEM JUMP UP AND DOWN TALL

PIECES OF FURNITURE. AND JUST TAKE EXTRA CARE OF

THEIR BACKS AND HOLD THEM AND SUPPORT THEIR ENTIRE BACK AND

DON'T ROUGHHOUSE THEM. CHRISTINA:

I COULD USE SOME HOLD AND SUPPORT ME AND DON'T ROUGHHOUSE.

I THINK THAT'S GOOD ADVICE. DAVID: THANK YOU VERY MUCH.

WHAT BREED IS BRUTUS? CHRISTINA: HE'S ALLEGEDLY A YORKIE.

BUT YOU KNOW. DAVID: HANDSOME IN HIS OWN WAY.

CHRISTINA: HE'S SAD NOT TO BE HERE THIS

MORNING. WE ARE COMING UP ON 9:00 A.M..

THE NEXT HOUR OF BLOOMBERG THIS WEEKEND STARTS NOW.

♪

DAVID: BREAKING NEWS. PRESIDENT TRUMP ESCALATES.

LAST MINUTE TRADE TALKS WITH

CANADA FALL APART OVERNIGHT DESPITE POSITIVE WORDS BEFORE.

NOW, TARIFFS ARE SET TO GO IN EFFECT ON BILLIONS OF DOLLARS

OF CANADIAN GOODS. CHRISTINA: SOME AMERICAN CATTLEMEN AND

REPUBLICAN LAWMAKERS HAVE BEEF WITH THE PROPOSAL. DAVID:

THE PRESIDENT WEIGHS IN ON THE TREASURY DEPARTMENT'S BOND

BUYBACKS AND THE POTENTIAL FOR MORE INTERVENTION.

>> WE HAVE MANY TYPES OF INTERVENTION.

THAT'S ONE PAID THE ULTIMATE INTERVENTION IS OUR MILITARY.

-- ONE. THE ULTIMATE INTERVENTION IS

OUR MILITARY. ♪ CHRISTINA: THE ULTIMATE

INTERVENTION IS OUR MILITARY. WE ARE GOING TO TALK ABOUT THAT

IN JUST A SEC. WE ARE COMING TO YOU LIVE FROM OUR WORLD

HEADQUARTERS IN NEW YORK. I AM CHRISTINA RUFFINI. DAVID:

I AM DAVID GURA. ALEXIS IS IN FOR LISA MATEO.

WHAT'S BEEN HAPPENING WITH THE BOND MARKET IS FRONT OF MINE

FOR ALL OF US ON THE SATURDAY MORNING.

BUT OF COURSE THE NEWS WE'VE BEEN TALKING ABOUT OVER THE

LAST COUPLE OF HOURS, A SURPRISING DECISION BETWEEN THE

U.S. AND CANADA TO WALK AWAY FROM

TRADE TALKS. A VERY REAL SITUATION, 50%

TARIFFS ON MANY GOODS. CHRISTINA:

WE WILL GET TO ALL OF THAT IN A SECOND.

LET'S GET TO ALEXIS WITH THE HEADLINES. ALEXIS: THE U.S.

SLAPPING 50% TARIFFS ON $20 BILLION WORTH OF CANADIAN

PRODUCTS AFTER TALKS BETWEEN THE TWO LONG-TIME ALLIES BROKE

DOWN LATE LAST NIGHT. THE TARIFFS TAKE EFFECT

IMMEDIATELY ON HUNDREDS OF ITEMS INCLUDING PLYWOOD,

LIQUOR, ELECTRICAL EQUIPMENT AND EVEN HOCKEY GEAR.

PRIME MINISTER CARNEY PROMISES RETALIATION, SAYING CANADA WILL

MATCH THOSE TARIFFS DOLLAR FOR DOLLAR, TO PROTECT WORKERS AND

BUSINESSES. THE TWO SIDES BLAME EACH OTHER

FOR THE CLAPS AND TALKS. THE U.S.

HAS CANADA MADE 11TH HOUR DEMANDS THAT UPENDED A DRAFT

DEAL WORKED OUT EARLIER IN THE WEEK.

PRESIDENT TRUMP WAS IN SOUTH CAROLINA YESTERDAY, MAKING A

LAST-MINUTE APPEAL FOR SENATOR DARLINE GRAHAM, HIS PICK TO

REPLACE HER BROTHER, THE LATE SENATOR LINDSEY GRAHAM.

>> THIS NOVEMBER, WE ARE GOING TO STOP THE RADICAL LEFT

DEMOCRAT COMMUNISTS HERE IN SOUTH CAROLINA AND ACROSS THE

NATION. AND WE ARE GOING TO ELECT

SENATOR DARLINE GRAHAM TO FIGHT, FIGHT, FIGHT FOR SOUTH

CAROLINA AND TO ALWAYS PUT AMERICA FIRST. ALEXIS:

VOTERS WILL DECIDE ON TUESDAY WHETHER GRAHAM OR RALPH NORMAN

WILL BE THE NOMINEE ON THE REPUBLICAN BALLOT.

SUPREME COURT JUSTICE JOHN ROBERTS IS ALLOWING THE WHITE

HOUSE TO CONTINUE CONSTRUCTION ON PRESIDENT TRUMP'S $400

MILLION BALLROOM PROJECT, AT LEAST FOR NOW.

ROBERTS SIGNED A TEMPORARY ORDER YESTERDAY, ALLOWING WORK

TO CONTINUE WHILE THE COURT CONSIDERS AN EMERGENCY APPEAL

FROM THE TRUMP ADMINISTRATION. LOWER COURTS ORDERED A HALT TO

THE PROJECT, FINDING IT MUST HAVE CONGRESSIONAL APPROVAL.

U.S. CATTLE RANCHERS AND THE REPUBLICANS WHO REPRESENT THEM

ARE PUSHING BACK ON PRESIDENT TRUMP'S PLAN TO ALLOW MORE BEEF

TO BE TEMPORARILY IMPORTED INTO THE U.S., TEAR FREE AND SOLD AT

25% BELOW CURRENT MARKET PRICES. BEEF PRICES CLIMBED TO RECORD

HIGHS AMID A CATTLE SHORTAGE, STRONG DEMAND AND LIMITS ON

CATTLE COMING FROM MEXICO. RANCHERS WARNED INCREASING

IMPORTS COULD HURT AMERICAN RANCHERS WHO ARE SEEING RARE

PROFITS THESE DAYS. AUTHORITIES SAY AT LEAST TWO

PEOPLE WERE KILLED OVERNIGHT IN UKRAINE BY RUSSIAN DRONE AND

MISSILE STRIKES. IT COMES A DAY AFTER AN ATTACK

ON A UKRAINE SHOPPING CENTER KILLED 16 PEOPLE.

RUSSIA HAS BEEN RATCHETING UP ITS BALLISTIC MISSILE ATTACKS

ON KYIV AT A TIME WHEN UKRAINE IS SHORT ON U.S.-MADE PATRIOT

MISSILES THAT WERE MEANT TO SHIP DOWN THOSE MISSILES.

CHRISTINA AND DAVID?

>> THANKS, ALEXIS. DAVID: THE MAJOR STORY HAVE TO DO WITH

THE TALKS DISSOLVING BETWEEN THE U.S. AND CANADA. CHRISTINA:

WE GO TO BLOOMBERG CORRESPONDENT JEFF MASON AND

OUR SENIOR EDITOR, CHRIS. JEFF, I WANT TO START WITH YOU.

WHAT HAVE WE HEARD FROM THE WHITE HOUSE ABOUT WHETHER OR

NOT THEY WILL GO BACK TO THE TABLE?

I KNOW IT'S EARLY AND WE MAY NOT HAVE HEARD YET.

BUT WHAT'S THE APPETITE FOR GOING BACK TO THE TABLE OR DOES

THE PRESIDENT WANT TO SEE WHAT HE CAN GET AFTER LEVYING THESE

TARIFFS? JEFF: IT'S HARD TO SAY. IT'S ONLY BEEN A FEW HOURS

SINCE THE NEW TARIFFS SET IN. THE PRESIDENT MADE CLEAR LAST

WEEK THAT HE WAS READY AND DID GIVE AN EXTENSION TO THE TWO

SIDES BECAUSE HE THOUGHT THAT THERE WAS PROCESS -- PROGRESS.

TO THE BROADER POINT OF YOUR QUESTION, I THINK IT'S

IMPORTANT TO NOTE THAT HE'S THE ONE THAT PUT THESE TARIFFS ON

IN THE FIRST PLACE. IN A RELATIONSHIP THAT, AS WE

WERE DISCUSSING A COUPLE OF HOURS AGO, HAD BEEN ONE OF THE

STRONGEST ALLIES THAT THE UNITED STATES CAN HAVE ITS

NORTHERN NEIGHBOR. AND THAT TENSION THAT HAS COME

IN SINCE THE PRESIDENT STARTED THE BEGINNING OF HIS SECOND

TERM, REFERRING TO CANADA AS THE POTENTIAL 51ST STATE HAS

ONLY INCREASED WITH THIS LATEST SET OF TARIFFS.

WHETHER OR NOT THERE IS APPETITE TO GO BACK AND TALK,

PROBABLY.

IT SEEMS CLEAR THAT IT IS IN NEITHER SIDE'S INTEREST FOR

THIS TIT FOR TAT TO GO ON AND ON AND ON.

BUT THE TENSION IS HIGH AND THAT'S GOING TO IMPACT WHETHER

OR NOT THEY GET BACK TO THE NEGOTIATING TABLE QUICKLY OR

NOT.

DAVID: BLOOMBERG.COM/NEWSLETTER, I

WANT TO PUT THAT PLUG IN. CHRIS, WHEN YOU SIT DOWN AND

WRITE IT, HOW WOULD YOU THINK ABOUT WHAT'S HAPPENING HERE

OVER THE COURSE OF THE LAST 24 HOURS?

ONE OF THE ECONOMIC EFFECTS OF THESE TARIFFS LIKELY TO BE?

CHRIS: THE OTHER BIG STORY OVER THE

PAST SEVERAL DAYS WITH REGARD TO WASHINGTON ECONOMIC

POLICYMAKING HAS BEEN TREASURY SECRETARY SCOTT BESSENT'S

INTERVENTION AT THE BOND MARKET. WHEN I SEE THE CANDIDATE NEWS,

THE FIRST THING I THINK ABOUT IS A 50% TARIFF RATE ON A SWATH

OF CANADIAN IMPORTS SOUNDS INFLATIONARY TO ME.

AS WE KNOW, INFLATION IS NOT GOOD IF YOU ARE A BOND INVESTOR.

THE FIRST THING I THINK ABOUT IS WHAT'S GOING TO HAPPEN TO

THE 10-YEAR TREASURY YIELD, WHEN IT STARTS TRADING IN ASIA,

AS THEY START ABSORBING THIS

NEW, INFLATIONARY IMPULSE, WHICH IS GOING TO BE AFFECTING

THE U.S. ECONOMY.

CHRISTINA: WE HEARD THE SOUND EARLIER OF

THE PRESIDENT SAYING WE ALWAYS HAVE OPTIONS, WE HAVE THE

MILITARY OPTION. WHAT? WHAT DID THAT MEAN? JEFF:

I DON'T HAVE A GOOD ANSWER FOR YOU ON THAT, QUITE FRANKLY.

IT DOES NOT MAKE SENSE. IT DOES NOT MAKE SENSE AT ALL,

THAT ANSWER.

I WANT TO GIVE A SHOT OUT TO MY COLLEAGUE, ADRIANA, WHO WAS

ASKING THOSE QUESTIONS ABOUT THE BOND MARKET.

THOSE WERE SPOT ON. HIS FIRST ANSWER MADE A LITTLE

BIT OF SENSE. HE SAID HE WAS NOT THE ONE WHO

DIRECTED SECRETARY BESSENT TO DO THE INTERVENTION AT THE BOND

MARKET. WHEN SHE FOLLOWED UP BY ASKING

HIM IF THEY WERE CONSIDERING WAR AND HE GAVE THE ANSWER

ABOUT THE MILITARY, WHICH MAY BE HIS HEAD HAD GONE TO IRAN,

IT'S UNCLEAR. BUT THERE'S OBVIOUSLY NO

MILITARY OPTION FOR THE BOND MARKET.

I WILL STEP BACK AND SAY IT'S INTERESTING TO ME THAT BOTH ON

THE BOND MARKET, IRAN, ON MULTIPLE THINGS THAT THE

PRESIDENT HAS -- AND HIS ADMINISTRATION ARE FACING

CHALLENGES WITH A HEAD OF THE MIDTERM ELECTIONS, NONE OF THEM

HAVE EASY, QUICK SOLUTIONS. AND THAT ALL OF THEM ARE

POTENTIAL THINGS THAT VOTERS WILL PUNISH REPUBLICANS FOR,

BECAUSE THIS IS THE PRESIDENT'S ECONOMY.

THIS IS THE PRESIDENT'S BOND MARKET, YOU COULD ARGUE.

AND IT'S THE PRESIDENT'S WAR. AND THOSE CREATE POLITICAL

CHALLENGES FOR HIM, WHETHER HE'S GIVING ANSWERS THAT MAKE

SENSE ON THE BOND MARKET OR NOT. DAVID: CHRIS, IT'S A BIG WEEK.

WE ARE LOOKING AHEAD TO THE JACKSON HOLE SYMPOSIUM.

KEVIN WARSH WILL GIVE A SPEECH THAT WILL BE HEAVILY

SCRUTINIZED. OFTEN THE CASE WHEN A FED

CHAIRMAN SPEAKS AT THIS YEAR'S -- AT THE PRESS CONFERENCE BUT

THIS YEAR ESPECIALLY SO, GIVEN WHAT HAPPENED AT THE LAST FED

MEETING. I WANT YOU TO DOVETAIL THAT

WITH WHAT WE SAW LAST MEETING. WHAT WE SAW FROM THE TREASURY

DEPARTMENT TO THE BOND MARKET AND WHAT WE SAW THE TREASURY

SECRETARY DOING WAS YIELD MANAGEMENT, WHICH CUSTOMARILY

OR HISTORICALLY HAS BEEN IN THE PURVIEW OF THE FEDERAL RESERVE

CHAIR. TALK ABOUT HOW THESE COUNTERVAILING APPROACHES STAND

TO COMPLICATE THINGS FOR THE FED IN PARTICULAR AND KEVIN

WARSH, GIVEN HOW HE THINKS MONETARY POLICY SHOULD BE

EXECUTED. CHRIS:

IT WOULD BE REALLY FASCINATING TO BE A FLY ON THE WALL OF THE

WEEKLY BREAKFAST BETWEEN TREASURY SECRETARY BESSENT AND

FEDERAL RESERVE CHAIR KEVIN WARSH OVER THE PAST MONTH OR SO.

BECAUSE THEY'VE BEEN EACH TAKING ACTIONS THAT HAVE

AFFECTED THE OTHER IN THE KIND OF UNHELPFUL WAYS.

REMEMBER THAT ONE OF THE REASONS WHY BOND YIELDS HAVE

BEEN RISING OVER THE PAST SEVEN MONTHS OR SEVERAL WEEKS HAS

BEEN THE REACTION TO KEVIN WARSH'S PRESS CONFERENCE AT THE

END OF THE LAST FED MEETING, WHERE HE FAILED TO EXPLAIN

REALLY WHY THEY KEPT INTEREST RATES UNCHANGED.

FAILED TO INDICATE SPECIFICALLY THAT THEY WERE PREPARED TO

RAISE INTEREST RATES IN ORDER TO TAKE INFLATION IN.

AND THERE WAS A LACK OF CLARITY ABOUT HIS WHOLE SO-CALLED

REACTION FUNCTION ABOUT HOW HE READS THE ECONOMY.

HE EVEN SUGGESTED THEY MAY SWITCH THE INFLATION GAUGE THEY

ARE LOOKING OUT FOR THEIR TARGET EARLY NEXT YEAR.

THE MARKET TOOK THAT AND THOUGHT OH MY GOSH, WE ARE

REALLY UNSURE ABOUT WHERE THE WARSH FED IS HEADING, IT TAKES

YIELDS HIGHER AND THE TREASURY SECRETARY COMES IN AND

INTERVENES AND INDICATES THAT HE THOUGHT THAT BOND YIELDS

WERE OUT OF WHACK. REMEMBERING IN THE PRESS

CONFERENCE THAT THE PRESIDENT SAID -- I'M SORRY -- THE FED

CHAIR SAID THE BOND MARKET WAS ACCURATELY READING THE ECONOMY

AND HE APPLAUDED THE FACT THAT THEY WERE PLAYING THE BALL AND

NOT THE REFEREE OF POLICYMAKERS IN WASHINGTON.

SO, THEY REALLY DO SEEM AT CROSS PURPOSES AND WE WILL BE

FASCINATED TO SEE WHAT THE FED CHAIR HAS TO SAY ABOUT THE

OUTLOOK ON FRIDAY. CHRISTINA: LISTENING TO CHRIS, I'M

WONDERING WHAT YOU MAKE OF ALL OF THIS.

IT SEEMS TO ME LIKE ONE OF THE PLACES PRESIDENT TRUMP DOES

LISTEN TO PUSH BACK IS ON THE MARKETS.

AND WE SAW THAT WITH HIM GETTING INVOLVED IN THE FED.

PEOPLE REACTED VERY STRONGLY. HE DID MOSTLY BACK OFF FROM

THAT. IS THE LESSON WE LEARN FROM

THAT, WE HEARD HIM TELL THE COLLIE NOT THE ONE WHO

INSTRUCTED BESSENT TO DO THE BUYBACK.

IS HE TRYING TO GO AT THIS A DIFFERENT WAY NOW?

AND WHAT WILL THE REACTION BE IF THE FED DOES HAVE TO RAISE

INTEREST RATES? THIS IS HIS GUY. HE DOESN'T WANT TO RAISE

INTEREST RATES. HE'S MAKING THAT HARDER NOW.

JEFF: INDEED. IF WE LOOK BACK ON HISTORY, I

DON'T THINK PRESIDENT TRUMP WILL REACT WELL TO A RATE

INCREASE EVEN IF IT'S HIS GUY. HE'S BEEN SUPPORTIVE OF WARSH

SINCE HE CAME IN. THIS WAS HIS HAND, HAND-PICKED

LEADER OF THE FED. TO YOUR POINT, THAT HE BACKED

OFF A LITTLE BIT FROM HIS THREATS WITH REGARD TO THE FED,

IT'S TRUE. HE NEVER ACTUALLY FIRED JAY

POWELL. BUT, HE DOLLED UP RHETORIC

PRETTY HIGHLY AGAINST JAY POWELL WHEN HE WAS STILL IN

CHARGE. AND REMEMBER, JAY POWELL WAS

ALSO HIS PICK. SO, IN THE SAME WAY THAT

MEMBERS OF PRESIDENT TRUMP'S CABINET FOR INNER CIRCLE CAN

NEVER REALLY BE SAFE FROM A POTENTIAL TURNAROUND IN

PRESIDENT TRUMP'S AFFECTIONS, I THINK THAT APPLIES TO THE FED

AS WELL. DAVID:

LET'S TALK ABOUT THE TREASURY SECRETARY'S TOOLKIT AS HE PUT

IT, WE TALKED ABOUT WHY THAT DID NOT RESULT IN A LONG-TERM

CHANGE TO THE VALUE OF THAT CURRENCY.

WE HAVE A TRANSIEN -- TREASURY SECRETARY REVEALING -- IT DID

NOT MAKE A LASTING IMPACT.

WHAT TOOLS DOES HE HAVE AT HIS DISPOSAL?

IS IT MORE INTERVENTIONS OF THIS SIZE?

DO THEY HAVE TO BE BIGGER, DO THEY HAVE TO BE MORE FREQUENT?

WHAT OPTIONS DOES HE HAVE LEFT? JEFF:

YEAH, THERE ARE A FEW THINGS.

AS YOU SAY, HE CAN BUYBACK MORE OF THE LONGER DATED SECURITIES

THAT HAVE THOSE HIGHER YIELDS. THERE IS, IT'S NOT FREE.

HE HAS TO PAY FOR THAT SOMEHOW. AND SO, THEY ARE GOING TO BE

SELLING MORE TBILLS AT THE SHORT END.

MONEY MARKET FUNDS HAVE A BIG APPETITE FOR TBILLS.

AND SO, THERE'S PROBABLY SOME RUNWAY THERE TO EXPAND THAT

WITHOUT SENDING T-BILL RATES UP. AND, THEY CAN ALSO, YOU KNOW,

GIVE SOME INDICATION ABOUT ISSUANCE OF LONGER DATA DEBT

OVER THE LONG TERM.

A COUPLE OF WEEKS AGO, THE TREASURY RELEASED ITS QUARTERLY

DEBT ISSUANCE POLICY STATEMENT IN WHICH IT OPENED THE DOOR TO

THAT POSSIBILITY, SAYING THAT GOING FORWARD, THEY WOULD LOOK

AT CHANGING POTENTIAL CHANGES IN ISSUANCE ACROSS THE CURVE.

SO, THAT'S ANOTHER THING, THEY COULD JUST SELL FEWER OF THESE

TENS, 20 AND 30 YEAR TREASURIES. THEY COULD POTENTIALLY WORK

DOWN THERE CASH PILE A LITTLE BIT.

THEY MAINTAIN IN EXCESS OF $900 BILLION OF CASH THAT IS JUST

SITTING THERE. PARKED AT THE FEDERAL RESERVE.

THEY COULD WORK THAT DOWN A LITTLE BIT AND CUT BACK ON

ISSUANCE A LITTLE BIT. THERE IS A POTENTIAL COST HERE,

DAVID. THE TREASURY FOR DECADES HAS

HAD THIS BASIC PRINCIPLE OF BEING REGULAR AND PREDICTABLE

ABOUT ITS DEBT ISSUANCE. THE CONCLUSION OF U.S.

TREASURY OFFICIALS AND MARKET PARTICIPANTS, OVER A LONG

PERIOD OF TIME, HAS BEEN THAT IT DOESN'T MAKE SENSE FOR THE

TREASURY TO TRY TO TIME THE MARKET TO TRY TO MANIPULATE

THINGS ON A WEEK BY WEEK BASIS. BUT, TO BE REGULAR AND

PREDICTABLE. EVERYBODY KNOWS OVER THE NEXT

QUARTER, THE NEXT SEVERAL QUARTERS, HERE IS WHERE WE ARE

GOING. AND SO, IF YOU START KIND OF

MIXING THINGS UP A LOT, YOU MAY START LEAVING INVESTORS WITH

DOUBTS ABOUT HOW, IF I WANT TO SELL MY 10 YEAR SIX MONTHS,

WHAT'S THE MARKET GOING TO LOOK LIKE AT THAT TIME? I DON'T KNOW.

MAYBE I NEED TO DEMAND A HIGHER PREMIUM TO BUY THAT THING NOW.

CHRISTINA: SPEAKING OF MIXING UP, I WANT

TO TALK TO YOU ABOUT BEEF IMPORTS. WE HAVE AUDIO FROM THE

PRESIDENT.

>> SOME RANCHERS AND REPUBLICANS ARE ASKING YOU TO

DELAY THAT.

>> WE WANT TO GET THE BEEF PRICES DOWN.

WE WILL GET THEM DOWN A LITTLE BIT.

THAT'S WHAT PEOPLE WANT, THAT'S WHAT THE VOTERS WANT AND THAT'S

WHAT I WANT. THE RANCHERS ARE GREAT.

THEY ARE MY PEOPLE. I LOVE THE RANCHERS.

THEY HAVE DONE A FANTASTIC JOB. THEY ADMIT THAT WE NEED A

LITTLE HELP, IN ORDER TO GET THE PRICES DOWN.

THAT'S WHAT WE ARE DOING. CHRISTINA:

JEFF, YOU WROTE ABOUT THIS. WHAT'S GOING ON WITH THIS

CHANGE IN POLICY AND WHY IS IT CAUSING BEEF WITH SOME RANCHERS

AND SOME REPUBLICANS, I KNOW DAVID HATES THE REPUBLIC --

HATES THE PUN BUT I'M GOING WITH IT. JEFF:

THE BROAD ANSWER IS THE PRESIDENT IS TRYING TO BRING

PRICES DOWN AHEAD OF THE MIDTERM -- MIDTERMS. HE AND HIS

ADMINISTRATION ARE SENSITIVE TO THE FACT THAT AFFORDABILITY HAS

BEEN AN EFFECTIVE ARGUMENT FOR DEMOCRATS WHEN THAT WAS THE

ARGUMENT HE RAN ON WHEN HE RAN FOR PRESIDENT SUCCESSFULLY IN

2024. SO, BEEF IS ONE EXAMPLE. THEY ARE TRYING TO BRING THIS

DOWN BY ALLOWING SOME IMPORTS IN , WITHOUT HAVING TO PAY

TARIFFS. AND HE SAID HE SECURED A DEAL

THAT WOULD RESULT IN THAT BEEF BEING SOLD FOR 25% LESS.

AND THE REASON THAT'S CREATING ISSUES WITH RANCHERS IS IT'S

UNDERMINING THE U.S. DOMESTIC MARKET.

HE RECEIVED CRITICISM FROM THE SENATOR OF MONTANA, FROM

NEBRASKA, I BELIEVE. BECAUSE RANCHERS ARE UPSET

ABOUT THIS. AT A TIME WHEN THEY ARE

STRUGGLING WITH THEIR BUSINESS BECAUSE OF DRONES AND OTHER

ISSUES TO MAKE MONEY. SO, THIS UNDERMINES THEM AND

THAT IS A POLITICAL PROBLEM AS WELL AS AN ECONOMIC PROBLEM.

DAVID: YOU CAN FIND THE LATEST PIECE

AT BLOOMBERG.COM AND THE BLOOMBERG TERMINAL. CHRISTINA:

COMING UP, PRESIDENT TRUMP PROMISED AN ECONOMIC D-DAY FOR

IRAN. WHAT DOES THAT MEAN? THAT IS STRAIGHT AHEAD ON

"BLOOMBERG THIS WEEKEND." ♪

ALEXIS: JOINING US LIVE ON BLOOMBERG

THIS WEEKEND, I'M ALEXIS CHRISTOFOROUS.

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

PRESIDENT TRUMP IS PROMISING AN ECONOMIC D-DAY AS THE WAR

DRAGGED INTO ITS SIX-MONTH. FORMER U.S.

NATIONAL SECRETARY ADVISOR, SECURITY ADVISOR JOHN BOLTON

TELLS BLOOMBERG'S BALANCE OF POWER, THE PRESIDENT HAS LOST

HIS WAY WITH THE WAR.

>> THE PROBLEM WE ARE IN NOW IS THE PRESIDENT DID NOT THINK

THROUGH WHAT HIS OBJECTIVES WERE AND DID NOT TAKE ADEQUATE

STEPS. HE'S BEEN ON-AGAIN, OFF-AGAIN

FOR MONTHS NOW. AND I THINK THE IRANIANS SEE

WEAKNESS, THEY SEE HIS CONCERN FOR THE UPCOMING NOVEMBER

ELECTIONS AND THEY ARE TRYING TO PLAY OFF THAT. ALEXIS:

BOLTON SAYS THE U.S. SHOULD USE MILITARY FORCE TO

OPEN THE STRAIT OF HORMUZ. HE'S CALLING FOR AN END TO THE

WAR, SAYING TEHRAN HOLDS A POSITION OF STRENGTH AS

DIPLOMATIC TALKS REMAINED STALLED.

GAVIN NEWSOM SAID HE'S PREFER -- SHE PREFERS A SETTLEMENT OF

THE STATE ATTORNEY GENERAL'S LAWSUIT OPPOSING PARAMOUNT

SKYDANCE'S ACQUISITION OF WARNER BROS. DISCOVERY.

HE HEADED TALKS, CHALLENGING THE 110 BILLION DOLLAR MERGER.

PARAMOUNT'S CEO, DAVID ELLISON, IS THREATENING TO MOVE THE

COMPANY OUT OF CALIFORNIA. A BOARD VOTE COULD COME AS

EARLY AS OCTOBER. THE TRUMP ADMINISTRATION IS

AUTHORIZING AN EARLY SHIFT TO THE SALE OF WINTERTIME GASOLINE

BLENDS. IT'S AN EFFORT TO BOOST DOMESTIC GAS SUPPLY AND GIVE

AMERICANS RELIEF AT THE PUMP. ACCORDING TO AAA, THE AVERAGE

GALLON FOR -- THE AVERAGE PRICE FOR A GALLON OF REGULAR IS

$4.10 FOR REGULAR. A YEAR AGO, IT WAS $3.14.

DAVID: THANK YOU VERY MUCH. CHRISTINA: THANKS, ALEXIS.

YOU ARE EITHER WITH US OR AGAINST US, THAT'S SCOTT

BESSENT'S MESSAGE TO U.S. ALLIES AHEAD OF A PRESS

CONFERENCE ON MONDAY IN WHICH THE TREASURY SECRETARY HAS

TEASED HE WILL ANNOUNCE DETAILS OF A NEW ECONOMIC OPERATION.

DAVID: AS BLOOMBERG ECONOMICS POINTED

OUT, IF 47 YEARS OF SANCTIONS HAVE NOT BROKEN TEHRAN'S WILL,

MORE OF THE SAME IS UNLIKELY TO PRODUCE A DIFFERENCE.

KIM JOINS US. GREAT TO HAVE YOU WITH US.

I WANT TO ASK YOU ABOUT HOW YOU THINK ABOUT THE POTENTIAL

EFFICACY OF HEIGHTENED SANCTIONS, DIFFERENT KINDS OF

SANCTIONS, TIGHTENING OF THE SCREWS AND THE WEIGHT -- IN THE

WAY IT SEEMS THE TREASURY SECRETARY HAS TEASED.

CUSTOMARILY, HISTORICALLY, A COUNTRY WOULD START WITH SEVERE

ECONOMIC SANCTIONS, RATCHET THEM UP AS THEY CAN AND THEN GO

TO THE MILITARY ALTERNATIVE. NOT THE CASE HERE AND I'M

WONDERING WHAT DIFFERENCE THIS COULD MAKE IF ANY.

>> GREAT TO BE WITH YOU. GREAT TO BE ON BLOOMBERG.

THANKS FOR HAVING ME. I WANT TO REMIND YOU THAT THERE

WAS AN EFFORT TO PUT PRESSURE ON IRAN, ECONOMIC PRESSURE ON

IRAN LAST YEAR AND AT THE BEGINNING OF THIS YEAR, WHICH

CRASHED THE IRANIAN CURRENCY AND PUSHED PEOPLE INTO THE

STREETS OF TEHRAN AND TO THE REST OF THE COUNTRY.

I'M NOT SAYING IT WAS PART OF A PLAN.

I'M NOT SAYING THAT IT WAS PART OF A CORRECT SEQUENCING OR THEY

THOUGHT THIS THROUGH WITH THE TRUMP ADMINISTRATION, I WROTE A

PIECE IN THE FINANCIAL TIMES SAYING THERE IS NO GRAND PLAN

ON IRAN BUT IT'S IMPORTANT TO KNOW THE TRUMP ADMINISTRATION

HAS BEEN TRYING DIFFERENT THINGS AND THIS PRESSURE ON

TEHRAN HAS BEEN THERE FOR A WHILE.

YES, THEN THEY WENT TO WAR AND THEY EXPECTED A QUICK COLLAPSE

OF THE REGIME. PEOPLE FLOODING INTO THE

STREETS TO TOPPLE THE ISLAMIC REPUBLIC. THAT DID NOT HAPPEN.

NOW, THEY ARE BACK TO ECONOMIC PRESSURE.

BUT ALSO, TRYING TO NEUTRALIZE IRAN'S LEVERAGE BY BYPASSING

THE STRAIT OF HORMUZ. WE ARE SEEING ALL THESE

DIFFERENT PLAYERS WORKING TO BYPASS THE STRAIT OF HORMUZ.

I WANT TO SAY ONE THING, BECAUSE I'VE THOUGHT A LOT

ABOUT IRAN AND THE U.S. AND THE RELATIONSHIP BETWEEN

THEM OVER THE LAST 47 YEARS. IT'S TRUE, THAT IF IF SOMETHING

HAS NOT WORKED FOR 47 YEARS, WHY WOULD IT WORK NOW?

BUT, THE CIRCUMSTANCES ARE SLIGHTLY DIFFERENT.

AND THAT'S WHY IT'S POSSIBLE THAT IT COULD LEAD TO A

DIFFERENT RESULT. I'M NOT PREDICTING THE COLLAPSE

OF THE ISLAMIC REPUBLIC, OR PERHAPS AN IMPLOSION BUT IT

COULD LEAD TO SOMETHING DIFFERENT THAN WE'VE SEEN OVER

THE LAST 47 YEARS BECAUSE THERE ARE DIFFERENT ELEMENTS TO THE

EQUATION. NAMELY, THE SEVERE WEAKENING OF

HEZBOLLAH IN LEBANON.

AND, THE WEAKENING OF IRAN'S REGIONAL ARCHITECTURE THAT IT

HAS BUILT OVER THE LAST 47 YEARS , INCLUDING MOST

IMPORTANTLY, THE COLLAPSE OF THE ASSAD REGIME IN DAMASCUS AT

THE END OF 24 OR 2025. SORRY. MY TIMELINES ARE ALL OVER THE

PLACE. CHRISTINA: WE ALL UNDERSTAND THAT.

>> BUT IT'S IMPORTANT TO KEEP IN MIND THAT IRAN TODAY IS

OPERATING AND TRYING TO SURVIVE A VERY DIFFERENT ENVIRONMENT

THAN IT HAD ENJOYED OVER THE LAST 47 YEARS. CHRISTINA:

WITH THAT IN MIND, WHEN YOU LOOK AT THE LANDSCAPE OF WHAT

COULD POSSIBLY BE SANCTIONED AND YOU ARE TRYING TO IMPACT

THE PROXIES, THE REGIONAL NETWORK, IF THAT'S WHAT YOU

THINK THEY COULD BE EFFECTIVE, CAN YOU WALK US THROUGH SOME

SPECIFICS OF WHAT THEY MIGHT TARGET AND WHAT THE RESULT

MIGHT BE? AND IN THE SHORT RUN, DOES THIS

MEAN LIFE GETS WORSE FOR THE AVERAGE PERSON IN TEHRAN?

>> LIFE ALWAYS GETS WORSE AND FIRST FOR THE PEOPLE, RIGHT?

IN IRAN, IN LEBANON, WE HAVE SEEN IT AGAIN AND AGAIN.

SANCTIONS ARE A BLUNT TOOL. NOT AS BLUNT AS MISSILE

STRIKES, BUT VERY BLUNT. THEY CANNOT BE APPLIED IN A

VERY TARGETED WAY. THEY AFFECT PEOPLE GENERALLY,

THE 66% INFLATION IN IRAN AT THE MOMENT, THE CURRENCY HAS

COLLAPSED. THERE IS MILLIONS MORE PEOPLE

UNEMPLOYED SINCE THE BEGINNING OF THE YEAR.

AND WE HAVE SEEN THESE REPEATED PROTESTS IN IRAN.

WHETHER IT'S ABOUT FREEDOM'S, AS WE SAW IN 2022 WITH THE

MAHSA AMINI PROTESTS OR ECONOMIC CONDITIONS AT THE

BEGINNING OF THIS YEAR. IF THERE IS A WELL THOUGHT

THROUGH PLAN, WE WILL FIND OUT ON MONDAY FROM THE TREASURY

SECRETARY. I SUSPECT IT WOULD BE FURTHER

TIGHTENING ECONOMIC TIES BETWEEN IRAN AND THE REGION.

WE HAVE ALREADY SEEN THE UAE ANNOUNCING ITS CUTTING ALL

TRADE AND TIES WITH IRAN. THAT I THINK WE'LL HAVE A BIG

IMPACT. WE ARE LOOKING AT THE SANCTIONING OR THE DETONATION

OF HEZBOLLAH IN LEBANON .

THERE IS A TIGHTENING OF HEZBOLLAH AND LEBANON

FINANCIALLY AND MILITARILY AND WE CAN TALK ABOUT THAT AS WELL.

CRUCIALLY, TRYING TO FIND WAYS TO CUT OFF THE UNOFFICIAL WAYS

THAT IRAN STILL IS ABLE TO FINANCE -- I'M THINKING ABOUT

THE CENTRAL BANK IN IRAQ, THE MILITIAS IN IRAQ, TRYING TO

FIND ALL THOSE DIFFERENT ROUTES THAT IRAN STILL USES TO FEED

ITS PROXIES AND ALLIES IN THE REGION.

THE IMPACT ON THE IRANIAN NOT ONLY ECONOMICALLY BUT THEY

HAVE BEEN THROUGH MONTHS OF WAR THIS YEAR AND YEARS OF

OPPRESSION BY THIS ISLAMIC REPUBLIC. DAVID:

LET'S PIVOT TO LEBANON. 11 PEOPLE KILLED IN TWO ISRAELI

STRIKES LAST SATURDAY. YOU MENTIONED THE NEWS GETTING

TIGHTER AROUND HEZBOLLAH.

THERE WAS A LOT OF TALKS THAT TOOK PLACE BETWEEN ISRAEL AND

LEBANON.

I AM CURIOUS WHERE YOU SEE ALL OF THIS HEADED AS SOMEONE WHO

HAS PAID SUCH CLOSE ATTENTION TO THIS COUNTRY IN PARTICULAR.

KIM: SEVERAL POINTS TO MAKE HERE.

FIRST OF ALL, ISRAEL IS NOT GOING TO MAKE CONCESSIONS.

THE PRIME MINISTER IS NOT GOING

TO MAKE ANY CONCESSIONS, ANY TANGIBLE CONCESSIONS BEFORE THE

ISRAELI ELECTIONS ON OCTOBER 27. WHATEVER HAPPENS, BENJAMIN

NETANYAHU WILL NOT GIVE GIFTS TO ANYONE, INCLUDING THE

LEBANESE GOVERNMENT WHICH IS A PROBLEM FOR THE TRUMP

ADMINISTRATION WHICH IS TRYING TO HAVE A SUCCESS IN THE MIDDLE

EAST AND THEY KIND OF ARE FOCUSED ON LEBANON NOW.

MARCO RUBIO IS HOPING LEBANON CAN BE A SUCCESS OF NEGOTIATION

OF COUNTERING IRAN'S INFLUENCE OF NEUTRALIZING IRAN'S ABILITY

TO SUPPORT GROUPS LIKE HEZBOLLAH IN LEBANON.

WE ARE SEEING ISRAEL TURN SOUTHERN LEBANON, 6% OF THE

TERRITORY, 67 VILLAGES, 270,000 PEOPLE MADE HOMELESS.

THAT 6% OF THE TERRITORY ALONG THE BORDER BETWEEN LEBANON AND

ISRAEL IS NOW UNINHABITABLE. I BELIEVE IT WILL REMAIN SO FOR

THE FORESEEABLE FUTURE EVEN IF THOSE NEGOTIATIONS BETWEEN

ISRAEL AND LEBANON COME TO A POSITIVE OUTCOME LIKE A

SECURITY AGREEMENT OR A PEACE AGREEMENT. WE ARE FAR FROM THAT.

ISRAEL IS CREATING A DEPOPULATED BUFFER ZONE ALONG

ITS BORDERS IN GAZA AND LEBANON AND OUTSIDE OF THE TERRITORY IT

OCCUPIES IN THE GOLAN HEIGHTS IN SYRIA.