DAVID: NEW OVERNIGHT, DEFENSE SECRETARY PETE HEGSETH SPEAKS

IN ASIA BUT DOES NOT MENTION TAIWAN IN HIS PREPARED REMARKS.

>> WE ARE CHANGING THE PLAYBOOK. THE ERA OF PERFORMATIVE

OUTRAGES OVER. DAVID: WHAT HE IS SAYING ABOUT U.S.

ALLIES AND THE WAR IN IRAQ, LIVE FROM SINGAPORE. CHRISTINA:

PLUS, WHAT'S IN A NAME? A FEDERAL JUDGE WRITES NO TO

THE TRUMP KENNEDY CENTER, WRITING THE BOARD DID NOT HAVE

THE POWER TO ADD THE PRESIDENT'S NAME. DAVID:

AND THE U.S. PLAN TO QUARANTINE AMERICANS

EXPOSED TO THE EBOLA VIRUS IN KENYA IS ON HOLD AS THE HEAD OF

THE WORLD HEALTH ORGANIZATION TOUCHES DOWN.

A FORMER CDC DIRECTOR JOINS US LIVE TO TALK ABOUT THE RESPONSE.

CHRISTINA: WELCOME TO "BLOOMBERG THIS

WEEKEND," COMING TO YOU LIVE FROM

BLOOMBERG WORLD HEADQUARTERS. I AM CHRISTINA RUFFINI. DAVID:

I AM DAVID GURA WITH LISA MATEO. A HEARTY WELCOME TO OUR

LISTENERS AND VIEWERS ACROSS OUR BLOOMBERG PLATFORMS, RADIO,

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

APP. WE ARE AWAITING WORD FROM THE

WHITE HOUSE. THE PRESIDENT WENT TO THE

SITUATION ROOM, STATED THERE FOR TWO HOURS TIME.

DID NOT COME OUT WITH A FINAL -- CHRISTINA:

CAME OUT BEFORE THAT AND THE DEFINITIVE DECISION HAS YET TO

APPEAR. THEY ARE TRYING TO FIND WHERE

THE CONVOCATIONS ARE. I WAS FILLING IN ON TIM AND

CAROL'S SHOW, SO I AM READY TO TALK ABOUT TECH EARNINGS IN A

WAY I WOULD USUALLY DEFER TO YOU. A HECK OF A GOOD OPERATION

THERE. BUT A BIG WEEK IN TECH. WE ALSO COLLEAGUES AT THIS

IMPORTANT SECURITY SUMMIT IN ASIA.

BUT FIRST, LISA MATEO WITH THE HEADLINES. LISA:

SEVERAL AMERICANS HAVE BEEN INJURED AFTER AN IRANIAN

BALLISTIC MISSILE STRIKE ON A KUWAITI AIR BASE.

IT ALSO WAS SERIOUSLY DAMAGED TWO STRIKE DRONES THAT COST

ABOUT $30 MILLION EACH. SOURCES TELL BLOOMBERG KUWAITI

AIR DEFENSES INTERCEPTED THE MISSILE, BUT FALLING DEBRIS

STRUCK THE AIR BASE. ABOUT FIVE PEOPLE, INCLUDING

CONTRACTORS AND ACTIVE DUTY PERSONNEL, SUFFERED MINOR

INJURIES. NO COMMENT FROM U.S. CENTRAL COMMAND.

THIS COMES AS PRESIDENT TRUMP CONSIDERS A DEAL TO EXTEND A

CEASE-FIRE, BUT STILL NO ANNOUNCEMENT HAS BEEN MADE FROM

THE PRESIDENT AFTER A ROUGHLY TWO HOUR MEETING IN THE

SITUATION ROOM FRIDAY. THE PRESIDENT IS DEMANDING IRAN

ABANDON ITS NUCLEAR PROGRAM AND OPENED THE STRAIT OF HORMUZ.

AT THE DEFENSE OPERATIONS -- CONFERENCE IN SINGAPORE, QATAR

SAID A TEMPORARY TOLL IS NEGOTIABLE AND COULD HELP

RESTORE NORMAL PASSAGE THROUGH THE WATERWAY.

AT THE REAGAN INTERNATIONAL ECONOMIC FORUM IN SIMI VALLEY,

TREASURY SECRETARY SCOTT BESSENT SUGGESTED THE TRUMP

ADMINISTRATION COULD LIFT CERTAIN SANCTIONS ON IRAN

DEPENDING ON HOW THE STANDOFF DEVELOPS.

>> WE PUT MORE SANCTIONS ON YESTERDAY, THE SECTION 32.

AIRLINES, WE HAVE OTHER FINANCIAL TARGETS.

THERE ARE A LOT MORE WE CAN DO IF WE HAVE TO, AND THERE ARE

SOME THINGS THAT WE CAN TAKE OFF TO HELP THE IRANIAN PEOPLE .

LISA: BESSENT ALSO SUGGESTED THE TREASURY WILL MINT A COIN WITH

TRUMP'S IMAGE ON IT TO CELEBRATE THE 250TH ANNIVERSARY.

PRESIDENT TRUMP IS AWAY FROM GENERATION OF THE KENNEDY

CENTER AFTER A FEDERAL JUDGE BLOCKED THE BORDER FROM CLOSING

THE PERFORMING ARTS VENUE AND ORDERING THAT PRESIDENT TRUMP'S

NAME BE REMOVED FROM THE BUILDING.

AND A JUDGE BLOCKED -- FROM THE PRESIDENT'S ALLIES WHO BELIEVE

THEY WERE VICTIMS OF A WEAPONIZED GOVERNMENTS.

A JUDGE SCHEDULED A HEARING FOR ARGUMENTS ON WHETHER TO EXTEND

THAT ORDER. DAVID: WE HAVE CONGRESS OUT UNTIL

WEDNESDAY. WE WILL SEE WHAT HAPPENS WITH

THAT FUND. I KNOW THERE WAS A LOT OF ANGST

AMONG REPUBLICANS ABOUT IT. CHRISTINA: IT IS GOING TO BE AN

INTERESTING TERM. QUITE A BIT ON THEIR PLATE.

AND THE TERMS ARE JUST A FEW MONTHS AWAY.

NEW THIS MORNING, DEFENSE SECRETARY PETE HEGSETH SAYS THE

U.S. IS READY TO RESTART STRIKES IN

IRAN IF THERE IS NO DEAL BETWEEN THE COUNTRIES.

IN A SPEECH, HE ALSO TOOK A SWIPE AT NATO HEADLINES.

HE TALKED ABOUT THE MIDDLE EAST, U.S.

PARTNERSHIPS, AND CHINA'S MILITARY EXPANSION.

>> THERE IS RIGHTFUL ALARM REGARDING CHINA'S HISTORIC

MILITARY BUILDUP AND THE EXPANSION OF ITS MILITARY

ACTIVITIES IN THE REGION AND BEYOND. WE SHARE A CLEAR-EYED

ASSESSMENT OF THAT SECURITY ENVIRONMENT AT A MUTUAL

UNDERSTANDING THAT A PACIFIC DOMINATED BY ANY HEGEMON WOULD

UNRAVEL THE REGIONAL BALANCE OF POWER AND UNDERMINE THE

EQUILIBRIUM WE ALL SEEK TO PRESERVE.

THE DEPARTMENT OF WAR IS WORKING WITH THE UTMOST FOCUS

TO PREVENT ANY SUCH UNRAVELING. WE DO NOT APPROACH THIS

CHALLENGE WITH NEEDLESS CONFRONTATION BUT WITH A

POSTURE OF MEASURED AND DELIBERATE STRENGTH. DAVID:

ON THE SIDELINES OF THAT IMPORTANT DEFENSE OF IS OUR

COLLEAGUE HASLINDA AMIN, A BLOOMBERG EDITOR-AT-LARGE AND A

HOST OF "INSIGHT WITH HASLINDA AMIN."

I WONDER IF YOU COULD SET THE SCENE.

PICK UP ON WHAT THE DIFFERENT SECRETARY SAID AND HOW THAT IS

COLORING THE PROCEEDINGS TAKING PLACE IN SINGAPORE THIS WEEKEND.

HASLINDA: WELL, YOU HEARD FROM HEGSETH

HIMSELF. IT IS A BALANCING ACT.

THE TONE THAT HEGSETH ADOPTED THIS TIME AROUND REFLECTS A

RELATIONSHIP WITH CHINA WHICH IS STILL BEING REDEFINED.

HE TALKED ABOUT HOW RELATIONS ARE CONSTRUCTIVE, THAT CHINA IS

POSSIBLY A PARTNER, AND THAT COMMUNICATIONS BETWEEN THE TWO

SIDES ARE OPEN. IN FACT, THE TWO MILITARIES ARE

IN COMMUNICATION CARE THAT IS WHAT IS INTERESTING HERE.

WHEN YOU SPEAK TO EXPERTS WHO POINT TO HOW RELATIONS BETWEEN

THE TWO, UNTIL NOW, HAVE BEEN LACKING IN COMMUNICATION, AND

THAT HAS LED TO SOME BIG MISUNDERSTANDINGS, PROMPTING TO

THAT RELATIONSHIP ON THE BRINK AT SOME POINT.

CASE IN POINT, BACK IN OCTOBER, WHEN THE U.S.

IMPOSED HEIGHTENED TARIFFS, AND THAT PROMPTED CHINA TO

RETALIATE BY WITHHOLDING CRITICAL MINERALS TO THE U.S.,

BRINGING THE U.S. ECONOMY TO ITS KNEES.

THAT'S BECAUSE OF A LACK OF COMMUNICATION. I THINK THE U.S.

AND CHINA ARE TRYING TO RECTIFY THAT. IF YOU TAKE A LOOK AT WHAT

HAPPENED IN BEIJING TWO WEEKS AGO, WE HAD PRESIDENT TRUMP,

BEFORE LEAVING BEIJING, AFTER THAT SUMMIT, TELLING XI

JINPING, YOU KNOW WHAT, CALL ME, MAYBE, IF THERE ARE ISSUES

BETWEEN THE TWO SIDES. IT IS AN ATTEMPT TO REDEFINE

THAT RELATIONSHIP AND COMMUNICATIONS ARE PRETTY MUCH

KEY. AND IT IS INTERESTING TO NOTE

AS WELL THAT THE PEW RESEARCH RECENTLY STATED WHAT THE

AMERICANS THEMSELVES THINK ABOUT CHINA.

THEY NO LONGER THINK OF CHINA AS AN ENEMY, AS A FOE.

THEY SEE CHINA AS A RIVAL. THEY CAN COEXIST. PERHAPS, THIS

IS THAT DEFINING MOMENT. CHRISTINA:

IT IS SO NICE TO FINALLY GET TO TALK TO YOU -- THIS IS THE

FIRST TIME I'VE GONE THE OPPORTUNITY SINCE JOINING THE

TEAM HERE. I WANT TO ASK A LITTLE BIT MORE

ABOUT HEGSETH BEFORE WE BROUGHT IN OUT.

IN THIS Q&A, HE WAS ALSO ASKED ABOUT FUTURE ARMS SALES TO

TAIWAN AND IF YOU WAS ABLE TO DO THAT.

THERE HAS BEEN REPORTING THOSE STOCKPILES ARE LOW.

IT IS EITHER BEING USED AS A BARGAINING CHIP, AS THE

PRESIDENT SAID, OR IT IS BEING PUT ON HOLD BECAUSE STOCKPILES

ARE LOW AND THE U.S. WILL NEED THEM.

WHAT WAS HIS RESPONSE AND HOW IS THAT PLAYING OUT AT THE

FORUM? HASLINDA:

FIRST OF ALL, I WANT TO SAY THAT TAIWAN IS THE REDLINE IN

RELATIONS BETWEEN THE U.S. AND CHINA.

TAIWAN, CHINA HAS WARNED TIME AND AGAIN, IF IT IS MISMANAGED,

THERE COULD BE SEVERE CONSEQUENCES.

TAIWAN IS THE REDLINE. THE FACT THAT HEGSETH'S SPEECH

DID NOT MENTION TAIWAN AT ALL IS A BIG DEAL.

IF YOU RECALL, BACK IN A SPEECH A YEAR AGO THIS TIME LAST YEAR

IN SHANGHAI, HE TALKED ABOUT TAIWAN, MENTIONED TAIWAN FIVE

TIMES. THIS TIME AROUND, NO MENTION OF

TAIWAN, EVEN THOUGH TAIWAN IS A KEY ISSUE FOR THE WORLD TODAY.

IT WAS ONLY DURING THE Q&A, WHEN HE WAS ASKED ABOUT THE

ARMS DEAL, WHICH CHINA TOOK ISSUE WITH, THAT HE SAID, YOU

KNOW WHAT, PRESIDENT TRUMP WILL DECIDE ON THAT.

THAT, IN ITSELF, IS A REFECTION HOW SENSITIVE HE IS TO THE

TOPIC OF TAIWAN. THE FACT THAT HE REFUSED TO

ANSWER THAT QUESTION SAYS EVERYTHING. DAVID:

YOU ARE WATCHING ALL THE PROCEEDINGS, PARTICIPATING THEM

-- IN THEM AS WELL.

HE SPOKE TO NATO'S -- YOU SPOKE TO NATO'S MILITARY CHIEF.

THE FOCUS IS ON THE INDO PACIFIC ALSO IN EUROPE, AND YOU

ASKED ABOUT THE RELATIONSHIP BETWEEN THE U.S. AND NATO.

LET'S LISTEN TO THE COLLOQUY YOU HAD. HASLINDA:

IN THE SPEECH BY PETE HEGSETH, THE SECRETARY OF WAR OF THE

U.S., HE TALKED ABOUT HOW THERE ARE GREAT BENEFITS FOR ALLIES

THAT HELP THEMSELVES. IT SEEMS TO BE A DIG FOR EUROPE

AND NATO. HOW DO YOU ASSESS WHAT HAS BEEN

RELAYED BY PETE HEGSETH?

>> WELL, THIS IS NOTHING NEW. WE HEARD THE MESSAGE LOUD AND

CLEAR A LONG TIME AGO.

WE HAVE A STRONG COMMITMENT IN THE HAGUE FOR 25% BY 2025.

WE ARE ON THAT PATH.

WE HAVE A NATO DEFENSE PLAN IN PROCESS TO GIVE US THE

CAPABILITY WE NEED, AND WE WILL REQUIRE THAT IN TIME, SO I

THINK WE ARE IN GOOD SHAPE. AND WE, AS A MILITARY SIDE, WE

DON'T HAVE ANY DRAMA GOING ON. DAVID:

ADMIRAL CAVO DRAGONE THERE.

THE FOCUS THERE, PRESIDENT TRUMP'S CALL FOR THESE EUROPEAN

NATIONS TO CONTRIBUTE MORE OF THEIR DEFENSE, HOW MUCH IS

BEING TALKED ABOUT ARBORS THIS FORUM SO FAR? HASLINDA:

THE NATO MILITARY CHIEF WAS PRETTY PLAIN AND CLEAR.

HE TALKED ABOUT HOW THEY ARE LISTENING TO THE U.S., BRINGING

DEFENSE SPENDING UP TO 5% -- IT WILL NOT HAPPEN OVERNIGHT.

BUT THEY ARE GETTING THERE. THEY HAVE LISTENED, AND THEY

KNOW THAT COMMITMENT. THAT IS ONE.

THE OTHER THING HE TALKED ABOUT IS HOW THE RELATIONSHIP BETWEEN

THE U.S. AND NATO IS MATURE, IS A

STABLE, AND IT WILL GO THROUGH ALL THESE CHALLENGES, AND IT IS

ADAPTING TO THE CURRENT CHALLENGES AND THE CURRENT TIME.

I THINK THAT'S KEY. YOU NEED TO DRAW THAT

COMPARISON WITH THE RELATIONSHIP THAT THE U.S.

HAS WITH THIS PART OF THE WORLD, THE INDO PACIFIC, WHICH

IS VERY MUCH RELIANT ON THE U.S. FOR, IN A WAY, FOR LACK OF A

BETTER EXPRESSION, PROTECTION. WITH CHINA'S BUILD UP IN THIS

PART OF THE WORLD, IT IS ONLY A U.S.-LED ALLIANCE, U.S.-LED

RESPONSE THAT CAN COUNTER THAT DEFENSE. IN ANY CASE, THE U.S.

CANNOT DO ANYTHING ALONE. IT REQUIRES NATO IN EUROPE, IT

REQUIRES THE PARTNERS IN THIS PART OF THE WORLD TO ACTUALLY

COUNTER THAT BUILDUP THAT WE SEE FROM CHINA NOW. CHRISTINA:

AN ARGUMENT NATO ALLIES HAVE BEEN MAKING TO THE WHITE HOUSE.

BEFORE WE LET YOU GO, THERE IS NEWS THAT THE NEW YORK TIMES

HAS KICKED OUT -- EXCUSE ME, CHINA HAS KICKED OUT THE NEW

YORK TIMES' LONG-STANDING, VERY ACCOMPLISHED REPORTER, VIVIAN

WHEN, AFTER AN INTERVIEW THEY DID WITH TAIWAN.

HISTORICALLY, CHINA HAS BEEN LENIENT WITH REPORTERS -- DOES

THIS CHANGE AFTER THE TRUMP-XI SUMMIT? HASLINDA:

IT IS REALLY HARD TO SAY WHAT REALLY IS HAPPENING.

IT IS HARD TO SAY WHAT U.S. POLICY IS TOWARDS TAIWAN RIGHT

NOW. I THINK THERE IS A REASSESSMENT

OF HOW THE U.S. OF USE TAIWAN. SOME PEOPLE VIEW THAT COME

UNDER THIS CURRENT ADMINISTRATION, THE TAIWAN

ISSUE IS NO LONGER A KEY ISSUE IN AMERICA'S POLICY TOWARDS

CHINA. THERE ARE OTHER, BIGGER ISSUES

IT NEEDS TO HANDLE. SO IT IS REALLY HARD TO SAY

WHETHER THE CRACKDOWN IS CONTINUING AND HOW THE WORLD

SHOULD BE RESPONDING. THERE IS A LACK OF CLARITY, AND

WE JUST HAVE TO WAIT AND SEE WHAT THE ACTUAL POLICY IS

TOWARDS TAIWAN. CHRISTINA: BLOOMBERG EDITOR-AT-LARGE IN

SINGAPORE HASLINDA AMIN, THANK YOU. DAVID:

DEFENSE SECRETARY PETE HEGSETH WAS ALSO ASKED ABOUT IRAN AFTER

PRESIDENT TRUMP ENDED THE MEETING OF THE SITUATION ROOM

WITHOUT A FINAL DETERMINATION ON A DEAL.

>> I HAVE HAD A CHANCE TO TALK TO PRESIDENT TRUMP THIS MORNING.

HE WANTED ME TO READ HOW PATIENT HE IS, WITH AMERICA

UNDERTAKING THIS HISTORIC ENDEAVOR, ANY DEAL WILL BE A

GOOD ONE, A GREAT ONE, AND HE IS PATIENT AND THE PURSUIT OF

THAT. BECAUSE OF HOW THE IMPLICATIONS

OF HOW THAT SORTS OUT, AND CERTAINLY OUR DEPARTMENT -- WE

WERE IN A CABINET MEETING JUST A COUPLE DAYS AGO, AND THE

PRESIDENT SAID IT WILL BE A GREAT DEAL, AND IF IRAN DOESN'T

WON A GREAT DEAL THAT ENSURES THEY DO NOT WANT A NUCLEAR

WEAPON, THEY CAN DEAL WITH THE GUY ON MY LEFT HERE THAT WAS

THE ONLY TIME I'VE EVER BEEN ACCUSED OF BEING ON THE LEFT.

HE POINTED AT THE WAR DEPARTMENT.

WE ARE SERIOUS ABOUT THAT. OUR ABILITY TO RECOMMENCE, IF

NECESSARY, WE ARE MORE THAN CAPABLE.

OUR STOCKPILES ARE MORE THAN SUITED FOR THAT, BOTH THERE AND

AROUND THE WORLD, BECAUSE OF HOW WE BALANCE EXQUISITE AND

MORE PLENTIFUL MUNITIONS. CHRISTINA:

THE WHITE HOUSE ISSUED A STATEMENT THAT READS PRESIDENT

TRUMP WILL ONLY MAKE A DEAL THAT IS GOOD FOR AMERICA AND

SATISFIES HIS REDLINES. IRAN CAN NEVER POSSESS A

NUCLEAR WEAPON. JOINING US NOW IS LAURA

DAVISON, BLOOMBERG'S DEPUTY WASHINGTON BUREAU CHIEF.

THANK YOU FOR JOINING US. FIRST OF ALL, IT IS A LITTLE

BIT OF DÉJÀ VU ALL OVER AGAIN. I FEEL LIKE WE HAD THIS EXACT

SAME TALK LAST WEEKEND, BUT YOU WERE NOT HERE.

LET'S GET YOUR TAKE ON ALL THIS. YOU HAD THIS PRONOUNCEMENT FROM

THE PRESIDENT, GOING IN, HUDDLING IN THE SITUATION ROOM,

GOING TO MAKE THIS DECISION, AND NOW, CRICKETS.

DO WE HAVE ANY IDEA WHERE THIS STANDS OR WHAT THE HOLDUP WAS?

LAURA: WE DON'T. HE WENT TO THE SITUATION ROOM,

YET AGAIN SET A DEADLINE FOR HIMSELF, SAID HE WOULD MAKE A

DECISION BY THE TIME HE COMES OUT OF THIS MEETING, AND THERE

HAS BEEN NO RESPONSE FROM THE WHITE HOUSE, OTHER THAN TO SAY

THAT THE MEETING HAPPENED, IT CONCLUDED, THAT ESSENTIALLY THE

PRESIDENT'S REDLINES, THE OPENING OF THE STRAIT OF HORMUZ

AND IRAN AGREEING TO GIVE UP ITS NUCLEAR PROGRAM AND ITS

ENRICHED URANIUM STOCKPILE, THOSE HAVE NOT YET BEEN

SATISFIED. THIS CONTINUES TO BE QUITE A

PICKLE FOR THE PRESIDENT. WE HAVE SEEN TRUMP TIME AND

AGAIN TRIED TO GET THIS DEAL COME TOGETHER IN THE MARKETS ON

THE WALL HAVE BEEN BRACING FOR A RESPONSE, BUT IT IS STARTING

TO TAKE THESE PRONOUNCEMENTS WITH A GRAIN OF SALT.

WE HAVE SEEN HIM SET UP A DEADLINE THAT HE THEN

COMPLETELY BLOWS PAST, SO IT WAS EVEN INTERESTING ON THE

TERMINAL YESTERDAY SEEING WHAT READERS WERE READING.

EVERY TRUE SOCIAL POST HE PUT OUT, PEOPLE WERE GLEANING TO

SEE IF THERE'S ANY INFORMATION. INSTEAD, HE WAS TALKING ABOUT

THE KENNEDY CENTER, PUTTING OUT MEMES, NOT ABOUT THE ONE THING

THAT HAS THE WORLD CAPTIVATED, IRAN. DAVID:

LET ME ASK YOU ABOUT WHAT WE HAVE HEARD FROM OTHER

ADMINISTRATION OFFICIALS. WE HEARD FROM SECRETARY SCOTT

BESSENT -- A LOT OF DETAIL ABOUT THE EFFICACY OF THE

SANCTIONS POLICY THAT HAS BEEN PUT IN PLACE IN IRAN.

WHAT DID HE HAVE TO SAY, BESSENT IN PARTICULAR, ABOUT

THE STRENGTH OF THE VICE THE U.S.

HAS PUT ON IRAN AS THE CONFLICT HAS CONTINUED? LAURA:

BESSENT'S COMMENTS CAME AFTER THE LATEST ROUND OF SANCTIONS

AND SAID THERE WAS MORE TO COME, POTENTIALLY ON AIRLINES.

HE ALSO SAID THERE WAS A BILLION DOLLARS OF IRANIAN

CRYPTO THAT HAD BEEN SEIZED THAT U.S.

CYBER FORCES HAVE BEEN ABLE TO SEIZE THAT FROM THE WALLETS

THEMSELVES, PUTTING ADDITIONAL

PRESSURE ON THE IRANIAN GOVERNMENT'S FINANCES.

THE IMPORTANT THING TO REMEMBER IS THAT THE IRANIAN PUBLIC AND

THRESHOLD FOR PAIN IS A LOT HIGHER THAN WHERE THE AMERICAN

POPULACE MIGHT BE. IF IT IS THERE COUNTRY, IF IT

IS AN AUTHORITARIAN COUNTRY, WE DO NOT HAVE A GREAT SENSE OF

WHAT IS GOING ON INSIDE THE BORDERS OF IRAN.

INTERNET HAS BEEN SHUT DOWN FOR THE BETTER PART OF THREE MONTHS

NOW. BUT EVEN WITH HUNGER LEVELS RISING, WITH AN ECONOMIC CRISIS

THAT COULD POTENTIALLY BE BREWING, THERE IS AN

ASYMMETRICAL BALANCE HERE ON WHAT THEY MIGHT BE ABLE TO

WITHSTAND. TRUMP HAS PIVOTED TO MAKING

THIS POINT THAT HE IS PATIENT, WILLING TO MAKE A DEAL, BUT HE

DOES NOT WANT TO RUSH TO THE FINISH LINE IF HE DOES NOT

THINK THE U.S. IS GETTING A GOOD DEAL.

BUT HE IS FACING A MUCH DIFFERENT SET OF CIRCUMSTANCES

WHEN IT COMES THE RISING GAS PRICES. CHRISTINA:

WE WILL HAVE TO LEAVE IT THERE. THANK YOU FOR JOINING US. DAVID:

LAURA DAVISON, OUR DEPUTY BUREAU CHIEF IN WASHINGTON.

COMING UP, LEGACY TECH COMPANIES HAVING THEIR MOMENT

IN THE SUN. MANDEEP SINGH JOINS US STRAIGHT

AHEAD ON "BLOOMBERG THIS WEEKEND ." ♪

LISA: THANK YOU FOR JOINING US LIVE

ON "BLOOMBERG THIS WEEKEND ."

DEFENSE SECRETARY PETE HEGSETH ASSURED PACIFIC ALLIES ABOUT

WASHINGTON REMAINS COMMITTED TO THE REGION.

>> WE ARE ENHANCING OUR FORCE POSTURE AND INVESTING IN THE

RIGHT CAPABILITIES. WE ARE NOT AT THE FINISH LINE

YET AND THERE IS STILL SOME HEAVY LIFTING AHEAD, BUT THE

MOMENTUM IS HEADED IN THE RIGHT DIRECTION. LISA:

HE WAS SPEAKING OUT THE SHANGRI-LA DEFENSE CONFERENCE

IN SINGAPORE. FORMER ATTORNEY GENERAL PAM

BONDI REFUSED TO ANSWER QUESTIONS ON PRESIDENT TRUMP'S

INVOLVEMENT IN THE RELEASE OF THE JEFFREY EPSTEIN CASE FILES.

DEMOCRATIC LAWMAKERS SPOKE OUT DURING A BREAK IN THE

COMMITTEE'S CLOSED-DOOR QUESTIONING.

DEMOCRATIC CONGRESS ROOM WHEN SUMMER LEE SAYS THE FIGHT IS

NOT OVER.

>> WHAT WE ARE COMMITTED TO DOING IS KEEPING THE MAIN STORY

THE MAIN STORY, THAT JUSTICE DOES NOT HAVE A TIME LIMIT,

THAT NO MUCH -- NO MATTER HOW MUCH COMER OR BONDI OR BLANCHE

OR TRUMP FIGHT, THE TRUTH WILL COME OUT. LISA:

-- TO SETTLE A LAWSUIT FROM A RURAL KENTUCKY SCHOOL DISTRICT.

THAT CLAIMS THAT THEIR PRODUCTS ARE ADDICTIVE AND HELPED CREATE

A TEAM MENTAL HEALTH SIZES. META IS PAYING THE LARGEST

SHARE, FOLLOWED BY SNAP, TIKTOK, GOOGLE, AND YOUTUBE.

MORE THAN 1300 OTHER SCHOOL DISTRICT HAVE FILED SIMILAR

LAWSUITS, AND THEY ARE AWAITING TRIAL. DAVID:

IT FEELS LIKE THAT DAM IS BREAKING A BIT. CHRISTINA:

THEY FOUND A STRATEGY THAT WAS MORE EFFECTIVE THAN BEFORE, AND

THAT WILL OPEN MORE -- NEW LOGIC CHAINS.

1990'S NOSTALGIA HAVING A BIT OF A MOMENT IN FASHION AND POP

CULTURE, AND THE ROARING 1990'S ARE BACK ALSO WHEN IT COMES TO

TECHNOLOGY. WE HAVE THE SO-CALLED LEGACY

TECH COMPANIES, DELL, INTEL, NOKIA, AND BLACKBERRY SAW

STOCKS SURGING THIS WEEK AS THEY ARE ALL MAKING TURNS

TOWARDS A ARE. DAVID: THIS IS DIFFERENT FROM THE BOOM

WE HAVE SEEN FROM OTHER COMPANIES LIKE OPENAI AND

ANTHROPIC. MANDEEP SINGH JOINS US NOW,

BLOOMBERG INTELLIGENCE'S GLOBAL HEAD OF TECHNOLOGY RESEARCH.

WALK US THROUGH WHAT IS HAPPENING.

IT FEELS LIKE THERE IS A BIT OF A LAG.

OBVIOUSLY A LOT OF EXCITEMENT FOR THESE NEW UPSTARTS NOW ON

TARGETS OF HUNDRED OF BILLIONS OF DOLLARS IN TERMS OF

VALUATION. BUT WHAT ACCOUNTS FOR THESE

LEGACY COMPANIES HAVING A MOMENT RIGHT NOW? MANDEEP:

ALL THESE COMPANIES WERE GROWING MID TO SINGLE HIGH

DIGIT AT BEST TOPLINE GROWTH.

SUDDENLY, BECAUSE EVERYONE IS LOOKING TO UPGRADE THEIR

INFRASTRUCTURE TO RUN MORE AI WORKLOADS, A COMPANY LIKE DELL

IS GUIDING TO ALMOST 40% TOPLINE GROWTH.

YES, THEY ARE BENEFITING FROM A NEW LINE OF AI SERVERS WHICH

DIDN'T EXIST TWO OR THREE YEARS BACK.

BUT WHEN YOU LOOK AT THE STYLE OF THESE COMPANIES AND THE WAY

THEY WERE GROWING IN THE PAST DECADE AND NOW, SUDDENLY,

EVERYONE IS TALKING ABOUT SUSTAINING THAT DOUBLE-DIGIT

GROWTH, THAT'S WHAT'S DRIVING A RESET IN EXPECTATIONS. DAVID:

DELL POPPING 33% FRIDAY. CHRISTINA: IT IS CRAZY.

WE DID THAT LIVEON TIM AND CAROL'S SHOW, IT WAS INSANE.

THE OTHER STUFF WE TALK A LOT ABOUT IS A SNOWFLAKE.

THE FIRST THING I WANT TO HIT WITH YOU IS TALK ABOUT THE

DIFFERENCE BETWEEN THESE LEGACY, PHYSICAL AI'S VERSUS AI

AGENTS AND WHY YOU ARE SEEING MORE GROWTH IN ONE PART.

ALMOST A BIT OF A SLUMP IN SOME OF AI SOFTWARE AS USERS DECIDE

WHAT THEY ARE ACTUALLY GETTING OR RELY ON. MANDEEP:

ALL THESE COMPANIES ARE TIED UP THE DATABASE LAYER, THEY ARE

HAVING THEIR MOMENT RIGHT NOW, BECAUSE WHEN YOU TALK ABOUT

AGENT DEPLOYMENT, YOU HAVE TO CONNECT YOUR ENTERPRISE

DATABASE , AND IT IS DRIVING MORE QUERIES FOR A COMPANY LIKE

SNOWFLAKE. ON TOP OF THAT, SNOWFLAKE

LAUNCHED THEIR OWN CODING AGENT. WE KNOW CODING AGENT IS THE

REAL BIG CATEGORY OF SOFTWARE THAT HAS EMERGED WITH THE HELP

OF LLM'S. THEY ARE IN THAT RIGHT SPOT.

INITIALLY THE MARKET TREATED EVERYONE EQUALLY IN TERMS OF

ALL THE SAAS NAMES GETTING CLOBBERED.

BUT NOW, YOU ARE FINDING THOSE SPOTS IN THE SAAS MARKET THAT

WILL ACTUALLY BENEFIT WITH MORE AGENTIC AI, MORE USE OF CODING

AGENTS, AND SNOWFLAKE IS PROBABLY ONE OF THEM. DAVID:

LET ME PROVE IT. I THINK THE PARLOR GAME OF THE

MOMENT IS THE DUELING IPO'D'S BETWEEN OPENAI AND ANTHROPIC.

WE SAW ANTHROPIC TAKING THE LEAD, BECOMING THE FRONT RUNNER.

I AM CURIOUS HOW YOU SEE THAT BINARY UNFOLDING AS WE PUSH

AHEAD TO THOSE IPO'S, THE WAY ANTHROPIC IS POSITIONING ITSELF

VIS-À-VIS OPENAI AND VICE VERSA. MANDEEP:

ANTHROPIC STARTED OFF OF THE YEAR AT AROUND A $10 BILLION

REVENUE RUN RATE.

THEY'RE ALREADY CLOSE TO $47 BILLION IN RUN RATE IN FIVE

MONTHS. THE PROJECTIONS ARE THEY WILL

PROBABLY END THE YEAR AT $100 BILLION REVENUE RUN RATE.

IT'S 10X. THEY HAD 10X LAST YEAR AS WELL.

THESE KIND OF HYPER GROWTH RATES ARE REALLY SOMETHING WE

HAVE NOT SEEN PROBABLY IN THE LAST 20, 30 YEARS.

WHEN I LOOK AT OPENAI, THEY HAD THE LEAD.

BUT IT SEEMS, IN TERMS OF GROWTH RATES, THERE IS NO DOUBT

ANTHROPIC HAS THE ADVANTAGE. EVEN SPACEX, THEY ARE TRYING TO

GIVE IT TO A NEO CLOUD. THE ACQUISITION OF CURSOR IS A

HUGE INFLECTION POINT IN TERMS OF SHIPPING XAI TOWARDS GROWTH.

BUT ANTHROPIC IS BY FAR THE LEADER WHEN IT COMES TO THESE

KIND OF GROWTH RATES. THEY SEEM TO BE SUSTAINABLE FOR

THE TIME BEING. CHRISTINA: IT'S INTERESTING YOU ARE SEEING

HARDER INVESTMENT ON THAT HOTTER INVESTMENT ON THE BACK

END OF THIS ON THE PHYSICAL MEMORY SPACE, AND WHILE YOU SEE

SOME HESITATION ON THE SOFTWARE SIDE, DEPENDING WHAT THE

SOFTWARE DOES. AND MANDEEP TAUGHT ME A NEW

WORD. "DISINTERMEDIATION"?

WHAT DOES THAT MEAN? ? DAVID: SIX SYLLABLES, IF I AM COUNTING.

CHRISTINA: AND WHY DOES IT MATTER?

IT IS EASY FOR SOME OF THESE INTEGRATED COMPANIES TO KEEP

THEIR MARKET SHARE, WHEREAS ONES THAT ARE KNOWN OR OUT ON

-- DAVID: LOOK AT YOU. CHRISTINA: MANDEEP TAUGHT ME.

BUT EXPLAIN IT, PLEASE. MANDEEP: OF THE COMPUTING STACK IS

CHANGING. WHEN WE THINK ABOUT LLM'S, THIS

SORT OF LAYER DIDN'T EXIST. THE MODEL, INTELLIGENCE LAYER IS A

NEW ADDITION TO THE COMPUTING STACK THAT WE HAVE BEEN

ACCUSTOMED TO OVER THE PAST 20, 30 YEARS.

FROM THAT PERSPECTIVE, YOU HAVE TO SEE WHAT IS THIS MODEL LAYER

GOING TO DO GOING FORWARD VERSUS HOW THE COMPUTING STACK

WAS ORGANIZED BEFORE. THAT'S WHERE YOU WANT TO MAKE

SURE THAT YOU ARE PART OF THAT MODERN COMPUTING STACK WITH THE

LAYER -- THE LLM LAYER. THAT IS WHERE SOMEONE LIKE

SNOWFLAKE HAS PIVOTED NICELY IN TERMS OF MAKING SURE THAT THEY

ARE NOT TRYING TO COMPETE WITH THE LLM LAYER BUT REALLY

SERVING SOMETHING THAT THE LLM NEEDS TO DEPLOY THAT

FUNCTIONALITY.

THAT'S NOT GOING TO BE THE CASE FOR EVERY SOFTWARE COMPANY.

THE MORE YOU ARE ADJUSTING YOUR BUSINESS MODEL TO MAKE SURE YOU

ARE ALIGNED WITH THE LLM LAYER, THE BETTER PROSPECT YOU HAVE

GOING FORWARD. DAVID: YOU HAVE THE OG TECH COMPANIES,

THE KIND OF BORING, HISTORICALLY BORING TECH

COMPANIES. WE SAT DOWN WITH THE PRESIDENT

AT CISCO -- THE TEASE AN INTERVIEW WE WILL PLAY LATER,

IS WILDLY EXCITED ABOUT THE NEW CISCO AND WHAT IT WILL DO.

WE THINK OF IT AS A NETWORK COMPANY BUT IT SEES AN

OPPORTUNITY WITH AI TO REINVENT ITSELF OR HAVE A RENAISSANCE.

ARE THERE COMPANIES LIKE CISCO YOU ARE WATCHING GOING THROUGH

A SIMILAR REINVENTION OR THINKING ABOUT WAYS THEY CAN

REBRAND OR REANIMATE THEMSELVES BECAUSE OF AI? MANDEEP:

RIGHT NOW EVERYTHING ON THE HARDWARE SEMICONDUCTOR SIDE IS

GOING THROUGH A COMPLETE TRANSFORMATION.

THESE WERE SUPPOSED TO BE COMMODITIZED COMPANIES WITH NO

PRICING POWER. YOU LOOK AT ALL OF THE CHIP

CATEGORIES. WE KNOW HARDWARE IS IN GREAT

DEMAND ACROSS THE BOARD BECAUSE OF THE ENTIRE COMPUTING STACK

IS BEING REIMAGINED. TRADITIONAL CHIPS ARE NOT GOOD

ENOUGH TO RUN THESE MODERN AI WORKLOADS AND THAT IS WHERE THE

COMPUTE DENSITY IS DRIVING THESE MAJOR SHIFTS ACROSS THE

BOARD. CHRISTINA: OUR GLOBAL HEAD OF TECHNOLOGY

RESEARCH AT BLOOMBERGTECHTV. IT WAS SO NICE SPENDING SO MUCH

TIME WITH YOU. THANK YOU FOR MAKING US ALL

QUITE A BIT SMARTER. DAVID: DISINTERMEDIATION.

I AM WRITING THAT DOWN. SPACEX IS ANOTHER COMPANY

PREPARING TO GO PUBLIC AS SOON AS MID JUNE.

THE COMPANY HAS BACKED OFF SLIGHTLY FROM A VALUATION

TARGET OF $2 TRILLION. CHRISTINA: TRILLION WITH A T.

THIS IS A WORD WE SAY NOW. IT COULD RESHAPE MARKETS.

IS WALL STREET RUSHING IN A BIT TOO FAST? DAVID:

SPACEX IS TAKING OFF, AND WE ARE NOT JUST TALKING ABOUT

ROCKETS.

>> WE HAVE NEVER SEEN ANYTHING LIKE THIS. DAVID:

SPACEX'S INITIAL PUBLIC OFFERING IS EXPECTED TO RAISE

AS MUCH AS $75 BILLION, MORE THAN DOUBLE THE RECORD-SETTING

$29.4 BILLION RAISED BY SAUDI ARAMCO IN 2019.

>> THE BIGGEST IPO OF ALL TIME.

>> LOOKING AT $2 TRILLION IN VALUATION.

>> ELON SAID HE DIDN'T PLAN TO TAKE SPACEX PUBLIC, BUT THAT

WAS BEFORE A MERGER WITH XAI AND HE NEEDED BILLIONS TO BUILD

OUT THESE AMBITIONS. DAVID: BUT THIS IS ALSO A TEST. COULD

THE HYPE MAKE IT SEEM LIKE IT'S WORTH MORE THAN IT IS?

>> IF IT IS PREORDAINED IT IS HARD TO PREDICT HOW MUCH OF THE

BUYERS ARE BUYING BECAUSE OF FUNDAMENTALS OR THE VALUATION

AND THAT DISTORTS THE MARKET. DAVID:

INVESTORS ARE BUYING THE DREAM. WE KNOW THE DREAM, BUT WHAT

ABOUT THE REALITY? DAVID: A GREAT DOCUMENTARY.

YOU CAN WATCH THE WHOLE THING AT BLOOMBERG.COM/VIDEO.

THE FAILED LAUNCH OF THE BLUE ORIGIN ROCKET THIS WEEK WAS A

THING TO BEHOLD IN FLORIDA. A CRAZY EXPLOSION ON THE

LAUNCHPAD. IT MADE ME THINK ABOUT THE

CONVERSATION YOU AND I HAD WITH LOREN GRUSH LAST WEEK ABOUT THE

DIFFICULTY OF GETTING THESE MASSIVE ROCKETS INTO SPACE.

WE ARE USED TO DOWN NORMAL THIS IS, HOW PRIVATE COMPANIES ARE

SENDING ROCKETS INTO SPACE, BUT THERE ARE STILL A LOT OF

POTENTIAL DIFFICULTIES. FORTUNATELY THAT WAS AN

UNMANNED MISSION WITH NO HUMAN TRAGEDIES, BUT MANY SATELLITES.

WITH THE TECHNOLOGY A LOT OF IT IS STILL NOT WHOLLY PROVEN.

CHRISTINA: IT HAS BEEN A WHILE THAT THE

COLLECTIVE GLOBAL WE SAW A SPACE RACE.

WE HAVE BEEN IN A COLLABORATIVE SPACE ENVIRONMENT.

DESPITE WHAT IS GOING ON WITH RUSSIA AND THE U.S.

THERE STILL SCIENCE/TECHNOLOGY COOPERATION.

WE FORGOT IT IS HARD AND WHEN YOU ARE RACING THINGS GET

MISSED. WHEN YOU'RE TRYING NEW TECHNOLOGIES THERE IS A RISK TO

IT. HOW MUCH RISK OF THESE COMPANIES ABLE TO TAKE ON

BECAUSE THEY ARE NOT GOVERNMENT ORGANIZATIONS, AND HOW MUCH

RISK ARE STOCKHOLDERS WILLING TO TAKE ON AS THEY VYE FOR IPOS

AND HOW WILL THAT IMPACT VALUATIONS? DAVID:

A COMPANY THAT SHOOTS ROCKETS INTO SPACE BUT IS MARGIN --

BUT IS MORE THAN THAT WITH AN AI COMPONENT AND SATELLITE

COMPONENT. WHEN YOU BREAK DOWN THE FIGURES

AHEAD OF THE IPO THEY ARE MAKING THE COMPANY MORE MONEY

THAN THE ROCKET PROGRAM. CHRISTINA:

THE INTERNET -- STARLINK. IT COVERS WORK ZONES WHICH A

LOT OF COMPANIES RELY ON. PAKISTAN PLAYING A CRITICAL

ROLE IN THE U.S.-IRAN PEACE NEGOTIATIONS.

HOW THE NATION SEES ITSELF IN THIS MOMENT.

YOU ARE WATCHING BLOOMBERG "THIS WEEKEND."

♪

LISA: THANK YOU FOR JOINING US. LET'S GET YOU UP-TO-DATE.

JEFF BEZOS' BLUE ORIGIN IS ASSESSING DAMAGE TO THE

LAUNCHPAD AFTER THE NEW GLENN ROCKET EXPLODED DURING A TEST

FIRING THURSDAY NIGHT. OFFICIALS WARNING THE PUBLIC TO

AVOID ANY WRECKAGE THAT MAY WASH ASHORE AND CALL 91 ONE.

NEW GLENN IS THE ROCKET THAT BLUE ORIGIN PLANS TO USE TO

LAUNCH LANDERS TO THE MOON FOR NASA.

PIZZA HUT WILL BE UNDER NEW OWNERSHIP. YUM!

BRANDS IS IN EXCLUSIVE TALKS TO SELL THE CHAIN TO LONG-RANGE

CAPITAL. LONG-RANGE REPORTEDLY ENTERED

EXCLUSIVITY WITH YUM!

BRANDS BEATING OUT BIDDERS THAT INCLUDED SYCAMORE PARTNERS.

ANOTHER GREAT KNOCKED OUT OF THE FRENCH OPEN AFTER A

SURPRISE OPENER. NOVAK DJOKOVIC IS OUT OF THE

RUNNING. HE WAS DEFEATED BY THE BRAZILIAN TEENAGER FONESCA.

THE TOURNAMENT CONTINUES AT COLONIAL COUNTRY CLUB IN FORT

WORTH TEXAS. GEORGE SMITH AT 10 UNDER PAR

FOLLOWED BY A FOUR WAY TIE FOR SECOND THAT INCLUDES THREE

AMERICANS.

HELP ME WITH THIS ONE. RYAN GERARD. BRIAN HARMAN.

[LAUGHTER] THE KNICKS WILL FIND OUT WHO

THEY PLAY IN THE FINALS. THE SPURS TAKING ON THE THUNDER.

THE SERIES IS TIED AT 3-3.

HOCKEY -- THE CAROLINA HURRICANES TOPPED THE MONTREAL

CANADIENS A 6-1 MEANING THEY WILL TAKE ON THE VEGAS GOLDEN

KNIGHTS AND THE STANLEY CUP FINALS ON TUESDAY.

CAROLINA -- DAVID: I GREW UP IN CAROLINA IT WAS A

BIG DEAL WHEN THE HURRICANES CAME THERE.

SOUTHEASTERN HOCKEY IS A THING TO BEHOLD.

I LOVE THAT PRONUNCIATION, LISA. ON FRIDAY, SECRETARY OF STATE

MARCO RUBIO MET WITH THE PAKISTAN FOREIGN MINISTER IN

WASHINGTON. CHRISTINA: HE THANKED PAKISTAN FOR THE

ROLE IN "REALIZING PRESIDENT CHARM'S VISION FOR PEACE IN THE

MIDDLE EAST AND ITS MEDIATION EFFORTS WITH IRAN."

AT DAVID AND I CAUGHT UP WITH OUR FRIEND FROM THE ASSOCIATED

PRESS IN NEW YORK. THEIR INTERNATIONAL

CORRESPONDENT. HE TALKS ABOUT EFFORTS TO END

THE WAR IN THE MIDDLE EAST. >> PAKISTANIS ARE REALLY PROUD, TO

BE HONEST, OF THE ROLE THEY ARE PLAYING.

THEY WEREN'T EXPECTING TO HAVE -- NO, NOT NECESSARILY.

IT IS BRAND-NEW. PEOPLE IN ISLAMABAD DESPITE THE

ROAD CLOSURES FOR A LONG TIME ARE STILL VERY ENTHUSIASTIC

ABOUT THE ROLE PAKISTAN IS PLAYING AND ARE CONFIDENT THEY

WILL KEEP THIS ROLE, EVEN IF THINGS HAVE SLOWED DOWN ON THE

DIPLOMATIC FRONT. THEY THINK IF THERE ARE GOING

TO BE -- LET'S NOT CALL THEM PEACE TALKS FOR NOW, BUT

NEGOTIATIONS OR THE SIGNING OF A MEMORANDUM OF UNDERSTANDING,

ANYTHING BETWEEN IRAN AND THE UNITED STATES, THEY THINK THAT

WILL BE IN ISLAMABAD. THERE ARE MORE CANDIDATES, MORE

TRADITIONAL INTERMEDIARIES READY TO JUMP IN IF THEY HAVE

TO, BUT FOR NOW IT IS ISLAMABAD WHERE THE STORY WILL UNFOLD.

THERE ARE REASONS IRAN TRUSTS PAKISTAN A LOT RIGHT NOW.

THE UNITED STATES, THE TRUMP ADMINISTRATION IN THIS CASE,

TRUSTS PAKISTAN AS WELL. WE HAVE SPOKEN ABOUT THIS ON

AIR. PRESIDENT TRUMP LIKES THE PAKISTANIS, HE LIKES THE FIELD

MARSHALL -- CHRISTINA: PERSONALITY DRIVEN.

ONE GUY WHO HAS MADE A HECK OF A NAME FOR HIMSELF.

>> ISN'T IT ALWAYS? HE IS CONSIDERED THE MOST

POWERFUL PERSON IN PAKISTAN WHERE THE ARMY TRADITIONALLY

HELD AN IMPORTANT ROLE AND HE IS STILL LIKE TO BUY PRESIDENT

TRUMP. THAT IS PROBABLY THE MAIN REASON WHY THINGS ARE GOING TO

HAPPEN IN ISLAMABAD WHEN THEY DO.

I'VE APPLIED FOR MY NEXT VISA. WE ARE READY TO GO.

WE THINK IT WILL BE ISLAM MOST LIKELY -- ISLAMABAD MOST LIKELY.

YOU SPOKE ABOUT THE TIME I SPENT THERE.

IT WAS A LOT OF TIME SPENT WAITING AFTER THE FIRST ROUND

OF TALKS AND THEN THE POSSIBILITY OF ANOTHER ROUND OF

TALKS IN THE FUTURE, ROAD CLOSURES REMAINED.

AT ONE POINT WE THOUGHT THE DELEGATIONS, OR ONE OF THEM,

WAS IN THE AIR. THEY WERE NOT. NOW THINGS ARE LITTLE BACK TO

NORMAL OVER THERE. I HAVE MY SOURCES WHO WILL TELL

ME WHETHER TALKS ARE COMING OR NOT. THEY DON'T HAVE TO BE THE

HIGHEST RANKING SOURCES. THEY CAN BE SOMEONE TELLING ME

THE ROADBLOCKS ARE HAPPENING.

AND THEN WE WILL BE HEADING OVER AGAIN. CHRISTINA:

SPEAKING OF MORE TRADITIONAL NEGOTIATORS, BEFORE PAKISTAN

YOU HAD NEGOTIATIONS IN GENEVA WITH THE

OMANIS. TALKING TO OUR SOURCES BEFORE,

THEY WERE TELLING ME IT WAS A SIGNAL THAT THE ADMINISTRATION

WASN'T SERIOUS ABOUT NOT HAVING SOME CONFLICT WITH IRAN, BEFORE

EVERYTHING STARTED, BECAUSE THE OMANIS ARE TRADITIONAL AND THE

THOUGHT AGAIN THIS ADMINISTRATION DOESN'T LIKE

THAT. WE ARE SEEING OMANIS FLOATING

THE IDEA OF GETTING TOGETHER AND TOLLING THE STRAIT.

PRES. TRUMP: THE STRAIT WILL BE OPEN TO

EVERYBODY. IT IS INTERNATIONAL WATERS.

NO ONE WILL CONTROL IT. WE WILL WATCH OVER IT BUT NO

ONE IS GOING TO CONTROL IT. THAT IS PART OF THE NEGOTIATION

WE HAVE. THEY WOULD LIKE TO CONTROL IT.

NO ONE WILL CONTROL IT. IT IS INTERNATIONAL WATERS.

WE WILL HAVE TO BLOW THEM UP. THEY UNDERSTAND THAT.

THEY WILL BE FINE. CHRISTINA: WE WERE CHECKING TO MAKE SURE

THE PRESIDENT DID NOT MISSPEAK. THE STATE DEPARTMENT RETWEETED

IT, CONFIRMING HE DID SAY OMAN, NOT IRAN.

STRUGGLING TO COME UP WITH SOME KIND OF WAY FORWARD, WHAT ARE

THE ODDS THAT YOU SEE MORE

DEFECTIONS FROM THE BLOCK OF STATES NEGOTIATING WITH THE

TRUMP ADMINISTRATION, PEOPLE WORKING OUT THEIR OWN DEALS

WITH IRAN TO GET BACK TO BUSINESS? PHILIP:

OMAN HAS BEEN HIT AS WELL BY IRAN AND THEY, OF COURSE, HAVE

JOINED CONTROL OF THE STRAIT OF HORMUZ.

WE DON'T MENTION OMAN BECAUSE IRAN HAS TAKEN OVER AND IS

MAKING MONEY OFF OF TRAFFIC GOING THROUGH THE STRAIT OF

HORMUZ, BUT OMAN HAS JOINT CONTROL AND HAS BEEN A

NEGOTIATING PARTNER BUT MORE OF AN INTERMEDIARY BETWEEN THE

UNITED STATES AND IRAN. TALKS HAVE HAPPENED IN THE

CAPITAL OF OMAN IN THE PAST, GENEVA AS WELL -- ANOTHER PLACE

WHERE TALKS HAVE HAPPENED. WE HAVE BEEN ASKING OURSELVES

THIS WHILE WE HAVE BEEN REPORTING FROM THE GULF A LOT.

WHAT WILL THE COMPANIES DO AND AT WHAT POINT WILL THEY JUMP

OFF ? THEY WERE IN A PURELY DEFENSIVE

POSITION THROUGHOUT THIS CONFLICT, THE UNITED ARAB

EMIRATES, SAUDI ARABIA, THE OTHER GULF COUNTRIES.

BEING HIT, NOT SUCCESSFULLY OFTEN, BUT RECEIVING A LOT OF

DRONES AND MISSILES AND THEIR AIR DEFENSES HAVE BEEN VERY

GOOD DURING THIS WAR. THEY HAVEN'T BEEN HIT THAT

HARD, BUT THEY HAVE ESSENTIALLY STAYED DEFENSIVE.

WE WILL SHOOT DOWN THESE DRONES, THESE MISSILES, BUT

WANT ATTACK IRAN FOR NOW. THERE HAVE BEEN THE QUESTION OF

AT WHAT POINT WILL THEY BE FED UP WITH THE SITUATION? DAVID:

BRING THIS FULL CIRCLE. IT'S A TREAT TO HAVE YOU IN NEW

YORK BUT YOU'RE TRAVELING COVERING CONFLICTS.

I WONDER HOW MUCH THE NATURE OF THE WORK HAS CHANGED WHEN YOU

LOOK AT WHAT IS HAPPENING IN THE MIDDLE EAST AND UKRAINE?

WE TALK TO EXPERTS WHO TRACK THAT WARNED WE DON'T HAVE A

FRONT LINE IN THE TRADITIONAL SENSE.

HOW IS YOUR JOB DIFFERENT? PHILIP:

MY FAMILY MEMBERS ARE VERY HAPPY THAT I AM NOT COVERING IT

-- I CAN SAY THAT I COVER WARS. I LIKE TO SAY THAT I COVER

COUNTRIES THAT ARE AT WAR, NOT WAR ZONES, IF YOU WILL.

EVEN IF I WANTED TO COME I THINK IT MIGHT BE DIFFICULT TO

GET THERE. MY FAMILY IS PRETTY HAPPY I

DON'T DO WAR ZONES IN THE TRADITIONAL SENSE.

IF YOU LOOK AT THE LATEST CONFLICT WE DISCUSSED, YOU

CAN'T GET INTO IRAN EITHER. SOME CORRESPONDENTS HAVE.

I THINK IT HAS BEEN ESSENTIALLY ONE TV CORRESPONDENT PER WEEK

HAS BEEN ABLE TO GET IN, BUT ALL OF THAT IS HEAVILY

CONTROLLED. THAT DOESN'T MEAN THAT

REPORTERS ARE BEING CENSORED, BUT IT'S DIFFICULT TO GET

INSIDE IRAN. A LOT OF THE WARS -- IT IS

SAFER, BUT WE ARE WATCHING THEM FROM THE OUTSIDE, IF YOU WILL.

LOOK AT THE U.S.-ISRAELI WAR ON IRAN.

MOST OF IT IS THE STRAIT OF HORMUZ.

YOU ARE CLOSE TO THE ACTION, IF YOU WILL.

CLOSE TO SEEING THE EFFECTS OF THE WAR.

THE REST OF IT I HAVE BEEN COVERING FROM DUBAI WHERE

LOCALS TELL ME THEY CONSIDER THIS A FIVE-STAR WAR.

MEANING YOU CAN HAVE A PRETTY LUXURIOUS LIFESTYLE IF YOU LIVE

IN DUBAI AND STILL HEAR THE OCCASIONAL DRONE.

THAT WILL ALMOST ALWAYS BE SHUT DOWN.

DUBAI HAS CHANGED TREMENDOUSLY. NO TOURISTS ESSENTIALLY.

THE HOTELS ARE VERY CHEAP RIGHT NOW BECAUSE NO ONE IS COMING IN.

IT IS A VERY STRANGE SITUATION.

THE LOCALS, WHOEVER YOU PUT IN THAT CATEGORY, EXPATRIATES WERE

LOCAL WORKERS FROM NEIGHBORING COUNTRIES, THEY HAVE LARGELY

REMAINED, SO LIFE DOES CONTINUE. YOU ARE COVERING A WAR FROM A

PRETTY LUXURIOUS PLACE LIKE DUBAI AND TRYING TO MAYBE HEAR

THE OCCASIONAL DRONE OR FIGHTER JET OVERHEAD.

THAT'S KIND OF AS CLOSE AS YOU'RE GOING TO GET THE FEELING

LIKE YOU ARE REPORTING ON THE WAR.

THAT IS KIND OF THE REALITY AND ALL OF THOSE CONFLICTS RIGHT

NOW. CHRISTINA: WHEREVER YOU GO NEXT, IT IS

NICE TO HAVE YOU ON. THANK YOU FOR JOINING US.

♪

CHRISTINA: WELCOME BACK TO BLOOMBERG "THIS

WEEKEND." I AM CHRISTINA RUFFINI, THAT IS

DAVID GURA. WE WILL TALK ABOUT DEREGULATION, ONE OF PRESIDENT

TRUMP'S FAVORITE WORDS. PRES. TRUMP:

WE ARE ENDING HIGH PRICES WITH TAX CUTS, DEREGULATION, AND,

FRANKLY, AGAIN, THE WORDS COMMON SENSE.

MY FIRST FOUR YEARS WE DID MORE DEREGULATION THAN ANY OTHER

PRESIDENT IN HISTORY. THE SINGLE LARGEST DEREGULATORY

ACTION IN AMERICAN HISTORY.

CHRISTINA: ELON MUSK AND VIVEK RAMASWAMY

WROTE AN OP-ED ABOUT IT. PRESIDENT TRUMP SIGNED

EXECUTIVE ORDERS ABOUT IT, AND LAST SPRING HE TOLD FEDERAL

AGENCIES TO FAST-TRACK IT WITHOUT PUBLIC NOTICE AND

COMMENT PERIODS. DAVID: THE WHITE HOUSE PLAN TO CUT

THROUGH REGULATIONS HAS FLOPPED. WE ASKED BLOOMBERG LAW WHY.

ROBERT: THE FIRST ADMINISTRATION HAD

PROBLEMS BECAUSE FEDERAL LAW HAS REQUIREMENTS ON WHAT IT

TAKES TO REPEAL REGULATIONS. A SIMILAR PROCESS TO CREATE A

REGULATION. ONE OF THE SHORTCUTS THAT THEY

WERE HOPING TO USE WAS BASICALLY AN EXCEPTION TO THE

LAW CALLED THE ADMINISTRATIVE PROCEDURE ACT.

THIS IS AN EXCEPTION THAT ALLOWS YOU TO SKIP ALL OF THIS

BURDENSOME RULING AND PROCEDURE. IT IS TRADITIONALLY USED IN

EMERGENCIES OR TO GET RID OF

RULES THAT ARE TICKY TACKY AND UNCONTROVERSIAL.

THE ADMINISTRATION CAME UP WITH A PLAN TO EXPAND THE USE OF

THIS TO SAY, WHEN AN AGENCY DEEMS THAT A RULE IS ILLEGAL,

PARTICULARLY ILLEGAL UNDER ONE OF A LIST OF 10 SUPREME COURT

CASES, THEY CAN GO AHEAD AND DISPENSE WITH THAT SORT OF

LABORIOUS, MULTI-YEAR RULEMAKING PROCESS AND GO AHEAD

AND WIPE IT OUT DIRECTLY. DAVID: THAT WAS THE PLAN.

YOU HAD THE ADMINISTRATION HAMMERING THAT POINT HOME,

DIRECTING AGENCIES TO DO THAT. YOU'VE DONE AN ANALYSIS OF HOW

MUCH THIS HAS BEEN PUT INTO EFFECT.

WHAT DID YOU LEARN FROM THAT ANALYSIS? ROBERT:

WHEN THEY ROLLED OUT THIS PLAN EARLY 2025, WHEN DOGE WAS

RUNNING ALL OVER THE PLACE, IT SEEMED LIKE THE ADMINISTRATION

COULD DO JUST ABOUT ANYTHING NO MATTER WHAT THE LAW SAID.

WHEN I SPOKE TO PEOPLE THEN, THERE WAS A WONDER ABOUT HOW

THIS WOULD LAND.

AFTER A YEAR PLUS, SINCE IT WAS ROLLED OUT, WHAT WE FOUND WAS

IT WAS NOT WIDELY ADOPTED AT ALL.

IT WAS ESSENTIALLY A NONSTARTER WITH AGENCIES.

THERE WERE JUST A HANDFUL OF EXAMPLES.

THEY WERE PRIMARILY CLUSTERED AROUND ANTI-D.E.I.

MOVES WHERE AGENCY CITED THE SUPREME COURT RULING FROM A FEW

YEARS AGO IN WHICH THE COURT BASICALLY GOT RID OF RACE-BASED

AFFIRMATIVE ACTION IN UNIVERSITIES AND USED THAT AS

JUSTIFICATION FOR GETTING RID OF SOME SMALL PROGRAMS THAT

WOULD ADVANTAGE MINORITY-OWNED BUSINESS AND THINGS LIKE THAT.

BUT THE SCALE OF THE EFFORT A YEAR PLUS AGO TO WHAT THE

ACTUAL RESULTS ARE, THERE IS A RATHER WIDE DELTA THERE. DAVID:

DOES THAT TELL YOU THIS WAS NOT EFFECTIVE, THERE WAS CONCERN

ABOUT USING THE LEGAL FRAMEWORK? WHAT CONCLUSIONS CAN WE DRAW

FROM HOW INFREQUENTLY IT HAS BEEN USED? ROBERT:

THE WHITE HOUSE DID NOT TALK TO ME ABOUT THIS, BUT TALKING TO

FORMER GOVERNMENT REGULATORS AND ADMINISTRATIVE LAW EXPERTS

THE CONSENSUS WAS THAT THIS IS EVIDENCE THAT THE

ADMINISTRATION OR AGENCY LAWYERS TOOK A LOOK AT THIS AND

DECIDED IT IS NOT REALLY TENABLE.

NOT -- THE AMOUNT OF LITIGATION THEY WOULD FACE AND THE

PROSPECT OF LOSING JUST DIDN'T JUSTIFY USING THE SHORTCUT.

DAVID: TAKE A STEP BACK AND LASTLY GO

BACK TO THE IDEA THAT I BROUGHT UP AT THE TOP THAT IS REFORMING

THE REGULATORY LANDSCAPE. ARE THERE PLACES WHERE THEY

HAVE BEEN MORE SUCCESSFUL? I LOOK AT COMMITTEES AND

COMMISSIONS AND THE FCC NOT FULLY STAFFED WITH

COMMISSIONERS. IT SEEMS LIKE ASIDE FROM RULES

THEY'VE MADE INROADS WITH NEUTERING THE REGULATORY

APPARATUS THE FEDERAL GOVERNMENT HAS? ROBERT:

100 PERCENT. IF YOU ARE TAKING A STEP BACK

AND LOOKING AT WHAT THE TRUMP ADMINISTRATION HAS DONE

VIS-A-VIS THE REGULATORY STATE, YOU'RE TALKING ABOUT RADICALLY

SHRINKING REGULATORY AGENCIES.

SOME AGENCIES DON'T HAVE ENOUGH REGULATORS TO POLICE THEIR

BEAT, SO TO SPEAK. YOU HAVE OTHER INSTANCES LIKE

WITH THE TUMOR FINANCIAL PROTECTION BUREAU WHERE THE

AGENCY -- THE ADMINISTRATION TRIED TO ELIMINATE THE AGENCY

WHEN A COURT STOP THEM FROM DOING THAT THEY SIDELINED OF

THE AGENCY. THEY HAVE REPEALED SOME RULES

GOING THROUGH THE FULL PROCESS THAT ARE VERY MEANINGFUL.

SO, IT'S NOT TO SAY THAT THE ADMINISTRATION HASN'T DONE

THINGS TO IMPEDE THE EFFORTS OF REGULATORS TO POLICE THE BEAT.

THIS SPECIFIC INITIATIVE TO QUICKLY RIP THROUGH THE CODE OF

FEDERAL REGULATIONS WITH A GOOD CAUSE EXCEPTION HAS FLOPPED.

ONE REASON THAT IS FLOPPED IS THINGS LIKE SHIFTING

ENFORCEMENT PRIORITIES, SHRINKING AGENCIES.

THOSE ARE VERY IMPACTFUL. THOSE ARE LITTLE EASIER TO

REVERSE BY FUTURE ADMINISTRATIONS WHERE THE IDEA

OF REPEALING REGULATIONS IS BURDENSOME, COSTLY, TAKES A

LONG TIME.

IF YOU REPEAL A REG AND NO ADMINISTRATION WANTS TO BRING

IT BACK, THEY CAN'T JUST SNAP THEIR FINGERS AND BRING IT BACK.

DAVID: APPRECIATE THE TIME. COMING UP ON 8:00 WALL STREET

TIME IN NEW YORK. CHRISTINA: THE NEXT HOUR OF BLOOMBERG

"THIS WEEKEND" STARTS RIGHT NOW. ♪

>> WELCOME TO "BLOOMBERG THIS WEEKEND,"

LIVE FROM NEW YORK WITH DAVID GURA, CHRISTINA RUFFINI A AND

LISA MATEO. -- CHRISTINA RUFFINI AND LISA

MATEO. 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. WE ARE COMING TO YOU LIVE FROM

BLOOMBERG WORLD HEADQUARTERS. I AM CHRISTINA RUFFINI. DAVID:

I AM DAVID GURA. WE BRING YOU THE LATEST

BREAKING NEWS AND ANALYSIS THIS MORNING AND EVERY SATURDAY

MORNING FROM 7:00 TO 10:00. OUR FOCUS IS ON SINGAPORE WHERE

OVER THE LAST 15 TO 16 HOURS, WE HAVE HAD A PARADE OF DEFENSE

AND SECURITY OFFICIALS TALKING ABOUT THE INDO PACIFIC BUT ALSO

TURNING THEIR ATTENTION TO EUROPE IN THE MIDDLE EAST AS

WELL. -- AND THE MIDDLE EAST AS WELL.

CHRISTINA: WE, TOPIC WISE, ARE PIVOTING TO

ASIA AND SOME OF OUR COLLEAGUES WHO ARE OUT THERE AND COVERING

THIS FORUM. IT'S AN INTERESTING TIME TO BE

THESE COUNTRIES. ESPECIALLY IN THE ASIA-PACIFIC

REGION, THEY ARE UNDER A LOT OF PRESSURE POLITICALLY.

THEY ARE TRYING TO FIND THEIR PLACE BETWEEN CHINA AND THE

UNITED STATES WITHOUT ANTAGONIZING EITHER ONE AND

THEY ARE DOING THIS AT A TIME OF A GLOBAL ENERGY CRISIS.

DAVID: WITH TWO SHOOTING WARS IN THE

MIDDLE EAST AND UKRAINE AS WELL. LET'S GET A CHECK OF THE

HEADLINES WITH LISA MATEO. LISA: SEVERAL AMERICANS HAVE BEEN

INJURED AFTER IRANIAN -- AN IRANIAN BALLISTIC MISSILE

STRIKE ON A KUWAITI AIR BASE. SOURCES TELLING BLOOMBERG THAT

THE KUWAITI AIR DEFENSES INTERCEPTED THE MISSILE BUT

FALLING DEBRIS STRUCK THE AIR BASE.

ABOUT FIVE PEOPLE INCLUDING CONTRACTORS AND ACTIVE-DUTY

PERSONNEL SUFFERED MINOR INJURIES.

NO COMMENT FROM THE U.S. CENTRAL COMMAND.

THIS COMES AS PRESIDENT DONALD TRUMP CONSIDERS A DEAL TO

EXTEND A CEASE-FIRE. STILL NO ANNOUNCEMENT HAS BEEN

MADE FOR THE PRESIDENT -- FROM THE PRESIDENT AFTER A ROUGHLY

TWO HOUR MEETING IN THE SITUATION ROOM ON FRIDAY.

THE PRESIDENT HAS INSISTED IRAN GIVE UP ITS NUCLEAR PROGRAM.

-- BUT ADDED A TEMPORARY TOLL IS NEGOTIABLE AND COULD HELP

RESTORE NORMAL PASSAGE THROUGH THAT WATERWAY.

A PLUME OF SMOKE WAS SEEN RISING OVER NORTHERN ISRAEL IN

THE EARLY HOURS OF SATURDAY MORNING.

FIGHTING BETWEEN ISRAEL AND HEZBOLLAH CONTINUES.

THE ISRAELI MILITARY SAID SEVERAL PROJECTILES WERE FIRED

FROM LEBANON INTO NORTHERN ISRAEL.

NO INJURIES WERE REPORTED. IT COMES AFTER A SIX-MEMBER

LEBANESE MILITARY DELEGATION MET FRIDAY WITH ISRAELI

MILITARY OFFICIALS IN THE FIRST DIRECT MILITARY TALKS BETWEEN

THE TWO COUNTRIES IN DECADES. PRESIDENT TRUMP SAYS HE'S

BACKING AWAY FROM HIS PROPOSED RENOVATION OF THE KENNEDY

CENTER AND RETURNING CONTROL OF IT TO CONGRESS.

THAT COMES AFTER A FEDERAL JUDGE BLOCKED THE KENNEDY

CENTER BOARD FROM CLOSING THE PERFORMING ARTS VENUE AND

ORDERED THE PRESIDENT'S NAME TO BE REMOVED FROM THE BUILDING.

THE RESCUE DIVERS IN LAOS HAVE SAFELY EVACUATED THE FIRST OF

FIVE LOCAL VILLAGERS WHO HAVE BEEN TRAPPED IN A CAVE FOR MORE

THAN A WEEK BY FLOODWATERS. TWO ARE STILL MISSING.

THEY REPORTEDLY ENTERED THE CAVE LAST WEEK TO LOOK FOR

VALUABLE MINERALS BEFORE BEING TRAPPED BY FLASH FLOODING.

ONE VILLAGER ESCAPED AND THE LIMITED THE AUTHORITIES TO THE

SEVEN THAT WERE LEFT BEHIND. DAVID:

THE EFFORTS THEY WENT THROUGH TO GET THOSE, THAT SOCCER TEAM.

>> I REMEMBER COVERING THAT STORY. IT WAS TERRIFYING. DAVID:

IT LASTED FOR WEEKS. CHRISTINA: PLEASE DO NOT GO CAVE DIVING.

THERE ARE OTHER THINGS YOU CAN DO. DAVID: NOTED. CHRISTINA:

TURNING NOW TO ACTUAL NEWS, SECRETARY OF DEFENSE PETE

HEGSETH REASSURED PACIFIC ALLIES OF U.S.

SUPPORT WHILE ALSO REITERATING THE PRESIDENT'S FOCUS ON AN

PEACE DEAL.

>> PRESIDENT TRUMP IS LASER FOCUSED ON A GREAT DEAL.

IRAN HAS THE PATIENCE TO SEE IT THROUGH IN HISTORIC FASHION TO

MAKE SURE THEY NEVER HAVE A NUCLEAR WEAPON.

AT THE SAME TIME, I'M OUT HERE ON HIS BEHALF TO ENSURE THAT

PACIFIC ALLIES KNOW EXACTLY WHERE AMERICA STANDS AND WE ARE

PREPARED TO DEFEND OUR INTERESTS WITH OUR ALLIES.

YOU SEE THAT THROUGH OUR NATIONAL DEFENSE STRATEGY.

WE ARE FOCUSED ON HOMELAND AND OUR HEMISPHERE BUT OUR ABILITY

TO PROJECT TO THE PACIFIC IS CENTRAL TO HOW WE PLAN AND HOW

WE WORK WITH OUR ALLIES AND PARTNERS.

DAVID: JOINING US IS JERRY DOYLE,

BLOOMBERG'S GLOBAL DEFENSE EDITOR.

GREAT TO SPEAK WITH YOU AS ALWAYS.

I WONDER IF YOU COULD SUMMARIZE THE REMARKS WE HEARD FROM PETE

HEGSETH. THERE WAS A FORMAL SPEECH.

HE DID NOT MENTION TAIWAN DIRECTLY OVER THE COURSE OF IT.

THERE WAS A Q AND A THAT FOLLOWED IT.

WE SAW THE COMMENTS HE MADE TO REPORTERS THERE AT THE END.

SUMMARIZE ALL OF THAT. JERRY: I WAS IN THE ROOM FOR THE

SPEECH. AND HEARING THE ENTIRETY OF IT

AND NOT HEARING TAIWAN COME UP AND NOT HEARING IRAN COME UP,

IT WAS A LITTLE JARRING THAT TWO OF THE TOP OF MIND ISSUES

IN SECURITY, GLOBALLY AND CERTAINLY IN ASIA.

HE DID TAKE A QUESTION. ONE ON TAIWAN, AND ADDRESSED IT

BRIEFLY BUT DID NOT MAKE ANY ADDITIONAL COMMENTS ABOUT WHAT

WOULD HAPPEN WITH THE $14 BILLION ARMS PACKAGE THAT IS

BEING PROPOSED FOR TAIWAN.

MANY OF HIS COMMENTS DID NOT DEVIATE VERY FAR AT ALL FROM

THINGS HE HAS SAID PREVIOUSLY ABOUT THE U.S.

WANTING TO PROJECT POWER AROUND THE REGION.

WANTING TO PROMOTE PEACE THROUGH STRENGTH.

ENCOURAGING ALLIES AND PARTNERS HERE IN THE ASIAN, INDO PACIFIC

REGION TO SPEND MORE ON DEFENSE. HE EVEN SORT OF TOOK THE TIME

TO TAKE A BIT OF A SWIPE AT AMERICA'S EUROPEAN ALLIES WHO

HAVE INCREASED DEFENSE SPENDING CONSIDERABLY IN THE LAST TWO

YEARS BUT IN THE MINDS OF THE TRUMP ADMINISTRATION, ARE NOT

DOING ENOUGH. CERTAINLY NOT HELPING IN THE

PERSIAN GULF TO OPEN UP THE STRAIT OF HORMUZ, WHICH IS A

MASSIVE PRIORITY FOR THE ADMINISTRATION AT THE MOMENT.

CHRISTINA: I WONDER WHAT YOU ARE HEARING

IN REACTION TO THE THINGS SAID AND NOT SAID FROM THOSE ASIAN

ALLIES. I THINK SPECIFICALLY ABOUT

VIETNAM, SOUTH KOREA AND JAPAN. THESE ARE COUNTRIES THAT

PREVIOUS ADMINISTRATIONS AND THE PREVIOUS TRUMP

ADMINISTRATION WHEN I COVERED SECRETARY POMPEO, I WENT TO

VIETNAM 3, 4, 5 TIMES BECAUSE THAT WAS AN ALLIANCE THE

ADMINISTRATION THOUGHT COULD BE USEFUL IN THAT REGION.

TRYING TO BREAK DOWN THESE HISTORIC ANIMOSITIES BETWEEN

SOUTH KOREA AND JAPAN AND VIETNAM TO GET THEM IN THE SAME

SECURITY FOOTING, THAT EFFORT HAS NOT BEEN THERE, PARTIALLY

BECAUSE THE ADMINISTRATION HAS HAD OTHER THINGS TO DO.

BUT DO THESE ALLIES FEEL LIKE WHEN THEY REACH OUT FOR THE U.S.

THAT THE U.S. WILL CONSISTENTLY BE THERE?

AND IN LIEU OF THAT, IN LIEU OF HAVING EVEN SPOKEN TO THEIR

SATISFACTION, WHAT DO THEY DO?

>> FIRST OF ALL, ONE THING THAT SEVERAL PEOPLE MENTIONED TO ME

OVER THE COURSE OF THE DAY AFTER THE SPEECH IS THAT THE

WAY THE U.S. SORT OF TREATS ITS ALLIES AND

PARTNERS IN ASIA VERSUS THE WAY IT TREATS ITS ALLIES AND

PARTNERS IN EUROPE MIGHT BE REFLECTIVE OF THE SORT OF

THREAT THAT IT IS SEEING.

RUSSIA IS A PRIMARY THREAT -- INDEED TO YOUR POINT ABOUT

HOW COUNTRIES IN THE INDO PACIFIC SEE THE U.S.

RELATIONSHIP, IT DOES FEEL LIKE

THIS IS SOMETHING THAT IS PERHAPS MORE TRANSACTIONAL NOW

THAN IT USED TO BE.

>> INTERESTING. GERRY: RELYING ON THE U.S.

TO STEP IN AND BE A PARTNER IS SLIGHTLY CONTINGENT ON DOING

MORE OF THE TYPES OF THINGS THE U.S.

WANTS THEM TO, EVEN IF THEY ARE NOT -- DAVID: STAY WITH US.

WE WILL BRING IN DANICA. I WANT TO BROADEN THE

CONVERSATION TO TALK ABOUT WHAT'S GOING ON IN THE MIDDLE

EAST. WE HAVE THE PRESIDENT IN THE SITUATION ROOM FOR TWO

HOURS. WE WERE EXPECTING AND INDICATION OF WHERE THINGS WERE

HEADED. HE HAD TALKED ABOUT THIS ONE-PAGE PROPOSAL THAT WAS

PASSED BACK AND FORTH BETWEEN AFGHANISTAN AND IRAN AND THE

U.S.. HE EMERGED WITH NOTHING BEYOND

THE STATEMENT THE WHITE HOUSE ISSUED OVERNIGHT.

WHAT DO YOU MAKE OF THIS? WE HAVE BEEN DEALING WITH A

FEELING OF DEJA VU, A LOT OF JAWBONING ABOUT A POTENTIAL

DEAL AND NOT SEEING THAT RECIPROCATED BY THE IRANIANS

MOSTLY. WHERE DO THINGS STAND NOW AND

WHAT DO YOU TAKE AWAY FROM WHAT'S HAPPENED OVER THE LAST

24 HOURS? DANICA: LOTS OF MIXED SIGNALS.

THAT IS THROWING A POTENTIAL DEAL IN DOUBT.

PRESIDENT TRUMP MENTIONED -- AS YOU MENTIONED WENT TO THE

SITUATION ROOM. HE WAS SUPPOSED TO MAKE A FINAL

DETERMINATION ABOUT THE PRELIMINARY DEAL.

AND THAT WOULD ESSENTIALLY INCLUDE A CEASEFIRE, EXTENDING

THE CEASE-FIRE FOR 60 DAYS AND THAT WOULD ALLOW THEM TO

DISCUSS MORE THORNY ISSUES LIKE THE NUCLEAR PROGRAM OF IRAN.

WE SAW THEM PLAY THAT DOWN AND TALK ABOUT THE RED LINES.

THAT WE AND THE FACT THAT HE WANTED TO MAKE THIS FINAL

DETERMINATION SENT A STRONG SIGNAL TO THE MARKET THAT THE

DEAL COULD BE ANNOUNCED SOON AND WE SAW A LOT OF MOVEMENT IN

THE MARKET IN THAT REGARD. THAT IS BECAUSE IT CAME AFTER

REPORTS THAT SAID WE AND THE IRANIANS AGREED.

IRAN SAID TO THEIR STATEMENT -- THROUGH THEIR STATEMENT MEDIA

THAT WE HAVE AGREED BUT IT HAS NOT BEEN FINALIZED.

THERE WILL BE SOME BACK AND FORTH AND I THINK IT WILL BE

DIFFICULT TO HONE IN ON A DEAL. PRESIDENT TRUMP IS UNDER

MASSIVE PRESSURE FROM THE RISE OF GASOLINE PRICES IN THE U.S.

AND RISING INFLATION FEARS, REPUBLICANS WHO WANT A BETTER

DEAL AND OF COURSE INTERNATIONAL PRESSURE TO END

THIS WAR AND REOPEN THE STRAIT OF HORMUZ.

HE HIMSELF SAID ONCE THAT HE DOES NOT DO BAD DEALS.

HE IS LOOKING FOR THE OPTIMAL WAY TO GET OUT OF THIS WAR AND

HAVE A DEAL WITH IRAN. CHRISTINA:

ABOUT THE STRAIT OF HORMUZ, I AM INTERESTED.

WE HEARD FROM THE QATARI DEFENSE MINISTER AT THIS FORUM,

SAYING THEY WOULD POSSIBLY BE OK WITH A TEMPORARY TOLD GOING

THROUGH THE STRAIT OF HORMUZ. THIS COMES AFTER WE SAW SIMILAR

OVATIONS FROM OMAN. OMAN ONCE HOSTED THESE

NEGOTIATIONS BETWEEN THE U.S. AND IRAN.

SOURCES TELL ME THEY WERE VERY UPSET ABOUT HOW THAT ALL PLAYED

OUT.

YOU HAVE QATAR SAYING IF IT WAS TEMPORARY AND TO HELP DE-MINING

EFFORTS.

DO YOU THINK YOU ARE GOING TO SEE MORE NATIONS TRYING TO

NEGOTIATE THEIR OWN WAY FORWARD EITHER UNILATERALLY OR IN

SMALLER GROUPS THROUGHOUT THE UNITED STATES? DANA:

I THINK A LOT OF THEM ARE WAITING TO SEE HOW IRAN WILL OR

HOW THE DEAL IS GOING TO FORMALIZE, WHETHER IT WILL

FORMALIZE AT IRAN'S -- FORMALIZE IRAN'S TOLL SYSTEM.

WE SAW PRESIDENT TRUMP SAY TIME AND TIME AGAIN THAT THERE WILL

BE NO TOLLS. ALTHOUGH AS IRANIANS, AS THEY

SET UP THE HORMUZ OF AUTHORITY, THEY HAVE BEEN TALKING ABOUT

MANAGING THE STRAIT OF HORMUZ.

QATAR SAID THEY WILL NOT ACCEPT TOLLS BUT MAYBE A TEMPORARY FEE

THAT WILL ALLOW THE FLOW. THERE HAS BEEN A FLOW OF SOME

SHIPS THAT WE HAVE REPORTED TWO. SHIP OWNERS ARE BECOMING MORE

OPTIMISTIC ABOUT THIS PICKUP IN TRAFFIC THROUGH HORMUZ.

WE SAW TWO MORE VESSELS LEAVING THE WATERWAY WITH THE U.S.

PROVIDING INFORMATION ON THEIR EXIT.

SOME SHIPS THAT CROSSED BELONG TO COMPANIES THAT HAD NOT

TRANSMITTED SINCE THE WAR BEGAN. THE UAE IS SENDING SHIPS

THROUGH THE STRAIT OF HORMUZ.

THE UAE HAS BEEN QUITE HOSTILE TOWARD IRAN AND HOW MANY

ATTACKS THEY HAVE HAD TO ENDURE DURING THE WAR.

IT'S DOUBTFUL THEY WILL -- THEY ARE IN CONTACT WITH THE

IRANIANS TO ALLOW THESE SHIPS THROUGH.

WE HAD DONE A STORY ABOUT THE SAME THING A WEEK AND A HALF

AGO THAT QATAR IS ALSO QUIETLY EXPORTING LNG TO KEEP HIRES --

KEY BUYERS. THERE IS SOME MOVEMENT THAT IS

GIVING A LITTLE BIT OF HOPE. BUT THE STRAIT OF HORMUZ, THAT

IS WHAT MARKETS ARE LOOKING AT. IT IS WHEN IT WILL OPEN AND HOW

MUCH WILL THIS FLOW START COMING IN.

AND OF COURSE, AS THESE ENERGY MARKET EXPERTS LIKE, EVEN THE

EMIRATES, EVEN IF HORMUZ OPENS TODAY, FLOWS WILL NOT RETURN TO

PREWAR LEVELS. THAT'S WHAT THE MARKET IS

LOOKING FOR AND HOW WE ARE GOING TO PRICE OIL FUTURES.

CHRISTINA: ALSO, GOING BACK IN IS A

DIFFERENT PROSPECT THAN THE FEW SHIPS THAT HAVE BEEN ABLE TO

GET OUT.

DAVID: LET ME GO BACK TO YOU, GERRY.

THERE WAS AN ATTACK AT THE KUWAITI AIRBASE.

IT MAKES ME WONDER WHAT THE PRESIDENT AND IRAN ARE

NEGOTIATING OVER. IT'S BEEN AN ODDLY KINETIC

CEASE-FIRE. WE HAVE SEEN THE U.S.

USING A LOT OF MILITARY MIGHT TOWARD IRAN HERE IN THE LAST

FEW DAYS IN PARTICULAR. I UNDERSTAND FROM YOUR

REPORTING, A COUPLE OF $30 MILLION DRONES AFFECTED BY THE

STRIKE THAT TOOK PLACE IN KUWAIT.

JUST GET UP -- GET US UP TO SPEED ON WHAT WE KNOW ABOUT

THAT. THE U.S.

IS -- THE U.S.'S MILITARY CAPACITY, HOW THAT STANDS THE

U.S. AS IT LOOKS TO ASIA HERE GOING

FORWARD. GERRY: THERE ARE CONCERNS THE U.S.

MIGHT BE A LITTLE BIT PREOCCUPIED WITH THE WAR IN

IRAN AND THE CAMPAIGN THERE AND NOT ABLE TO KEEP ITS EYE ON THE

BALL IN THE INDO PACIFIC. PETE HEGSETH WOULD HAVE

ADDRESSED THAT THIS MORNING AND SAID WE CAN DO MANY THINGS AT

ONCE. MORE TANGIBLY, THE U.S. HAS STOCKPILES OF QUITE A FEW

RARE AND VALUABLE WEAPONS AND LONG-RANGE CRUISE MISSILES SUCH

AS AIR DEFENSE MISSILES.

AND THOSE, YOU CAN'T USE WORDS . THEY HAVE TO BE REPLACED.

IN THE MEANTIME, THE U.S. IS GOING TO PRIORITIZE ITS OWN

NEEDS FOR WEAPONS OVER ITS ALLIES.

WE HAVE SEEN THAT REFERRING TO SWITZERLAND.

COUNTRIES OUT HERE ARE OBVIOUSLY CONCERNED THAT

SOMETHING LIKE THAT WILL HAPPEN WITH THEM AS WELL.

IN TERMS OF THE CEASE-FIRE, AND THE WAY THAT THE KINETIC

ACTIVITY MIGHT AFFECT THAT, IT'S REALLY HARD TO SAY.

THERE HAS BEEN A LOT OF SHOOTING SINCE THE CEASE-FIRE

WENT INTO EFFECT IN APRIL. THE FACT THAT THIS PARTICULAR

MISSILE STRIKE INJURED SOME AMERICANS, MAYBE THAT CROSSES

SOME SORT OF A THRESHOLD. MAYBE THAT DOESN'T.

IT'S NOT EVEN CLEAR THAT THE DEAL THAT IS BEING CONSIDERED,

BEING EXTENDED BY 60 DAYS, THE CEASE-FIRE THAT WAS INDEFINITE

ANYWAY, HOW MUCH IS BEING ASKED LATER.

IT'S IMPOSSIBLE TO SAY THE IMPACT BUT THE TIMING IS

CERTAINLY AWKWARD.

AN IRANIAN BALLISTIC MISSILE STRIKE THAT INJURES AMERICANS

AND DAMAGES EXPENSIVE MILITARY HARDWARE, AS THE U.S.

AND TRUMP ARE TRYING TO MAKE A FINAL DETERMINATION ABOUT THE

DEAL. IT IS AWKWARD TIMING.

DAVID: WE APPRECIATE YOUR TIME ON THIS

SATURDAY. INTERESTING TO WATCH THESE

CONVERSATIONS TAKING PLACE.

CHRISTINA: IN AN INTERCONNECTED GLOBALIZED

WORLD, IT ALL MATTERS. COMING UP NEXT, WE WILL TALK TO

THE FORMER CDC DIRECTOR, TOM FRIEDEN, TO TALK ABOUT THE

EBOLA OUTBREAKS AND AMERICA'S RESPONSE.

THAT IS STRAIGHT AHEAD ON "BLOOMBERG THIS WEEKEND."

STAY WITH US.

♪

LISA: THANKS FOR JOINING US. I AM LISA MATEO.

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

PETE HEGSETH REASSURED PACIFIC ALLIES THAT WASHINGTON REMAINS

COMMITTED TO THE REGION.

>> OUR FOCUS IS STRONG, QUIET AND CLEAR.

STRONG, QUIET AND CLEAR. CLEAR ABOUT OUR INTENTIONS,

PRIORITIES AND OUR ABILITY TO DELIVER ON THE ADMINISTRATION'S

GOALS. THIS IS A MODEL OUR ASIAN PARTNERS VASTLY PREFER.

AND HAVE LONG FOLLOWED. LISA:

HE WAS SPEAKING AT A DEFENSE CONFERENCE IN SINGAPORE.

HE TOOK SWIPES AT LONG-STANDING PARTNERS IN EUROPE.

THREE PEOPLE WERE INJURED IN THE WAR IN UKRAINE AND A

RUSSIAN STRIKE IN SOUTHEASTERN UKRAINE. THE STRIKE ALSO DAMAGED

RESIDENTIAL BUILDINGS, CARS, UKRAINE'S AIR DEFENSE SAYS

RUSSIAN FORCES LAUNCHED 232 DRONES AGAINST UKRAINE REGIONS

OVERNIGHT. 217 OF WHICH WERE INTERCEPTED.

CHARRED RUBBLE IS ALL THAT REMAINS AFTER AN APARTMENT

BUILDING IN DALLAS EXPLODED INTO A MASSIVE FIREBALL.

THREE PEOPLE WERE KILLED AND SEVEN MORE WERE INJURED.

INITIAL REPORTS INDICATED A CONTRACTOR HAD DAMAGED

UNDERGROUND GAS PIPELINE. DAVID: THANK YOU VERY MUCH.

APPRECIATE THAT. CHRISTINA: THANKS, LISA.

THE GLOBAL HEALTH COMMUNITY IS TRYING TO CONTAIN A FAST-MOVING

EBOLA OUTBREAK IN THE DEMOCRATIC REPUBLIC OF CONGO.

DAVID: THE U.S. IS SCREENING PASSENGERS FOR

SIGNS OF INFECTION AND KENYA BLOCKED PLANS FOR A QUARANTINE

FACILITY BACK IN RUN BY THE U.S. TOM FRIEDEN JOINS US.

THE REASON I WANTED TO HAVE YOU ON IS WE WERE SPEAKING WITH

JEREMY LAST WEEK ABOUT THIS OUTBREAK THAT HAS UNFOLDED AND

HE SAID BACK WHEN HE WAS RUNNING POINT FOR USAID IN 2014

AND 2015, THIS WAS YOUR FULL-TIME JOB.

HE WAS THE HEAD OF CDC AND HAD A COMPLETE FOCUS ON THE EBOLA

OUTBREAK. I'M CURIOUS, AS YOU LOOK AT THE

RESPONSE THUS FAR, IF YOU HAVE CONFIDENCE THAT SOMEBODY WITHIN

THIS ADMINISTRATION IS DOING JUST THAT, PAYING AS MUCH

ATTENTION TO THIS OUTBREAK AND FOCUSING ON CONTAINING IT. TOM:

I'M NOT DIRECTLY INVOLVED. I CAN COMMENT AS AN OUTSIDER.

I SEE THEM PROVIDING SOME FINANCIAL ASSISTANCE.

I DO SEE MANY, MANY SCIENTISTS, DOCTORS, NURSES AND LAB EXPERTS

AT THE CDC BEING VERY DEDICATED TO STOP THINGS.

-- TRY AND STOP THINGS. WE HAVE TO START WITH WHAT THE

CONTEXT IS. THIS IS GOING TO BE REALLY HARD

TO CONTROL. JUST TO GIVE YOU A FLAVOR OF

THAT, BY THE TIME WE STARTED RESPONDING IN 2014, THERE WERE

BETWEEN 40 AND 50 CASES. BY THE TIME THE WORLD STARTED

RESPONDING THIS YEAR, THERE WERE BETWEEN 400 AND 500 CASES.

CHRISTINA: WHY IS THAT? IS IT PARTIALLY BECAUSE THE

REPORTING STRUCTURE WAS RELIANT ON THINGS LIKE USAID THAT ARE

NO LONGER THERE? TOM: TO BE BLUNT, SOME PEOPLE I

SAYING THAT. THAT IS A KNEE-JERK RESPONSE.

IT MAY OR MAY NOT BE CORRECT. I DON'T KNOW THAT.

THERE ARE PLENTY OF REASONS TO EXPLAIN A DELAYED DETECTION

WITHOUT THAT. AND THERE WILL BE PLENTY OF

TIME TO ASSESS WHETHER OR NOT THAT CONTRIBUTED.

THE POINT RIGHT NOW IS WE NEED AN EMERGENT, IMMEDIATE,

METICULOUS RESPONSE, JUST SO QUICKLY.

I CAN'T EXPRESS HOW IMPORTANT IT IS TO WORK WITH URGENCY.

AND THE REASON FOR THAT IS WITH EBOLA, WHAT WE FIGURED OUT IN

WEST AFRICA, I WENT THERE MULTIPLE TIMES AND WORKED WITH

THE TEAMS AND HAD FANTASTIC STAFF.

WHEN I RAN THE CDC, ALL 158 DISEASE DETECTIVES WENT TO

EBOLA. WE HAD CLOSE TO FOUR THOUSAND

PEOPLE WORKING WITHIN DAYS. WE HAD 50 PEOPLE IN THE FIELD.

WE HAD ON AVERAGE 200 PEOPLE A DAY IN THE FIELD.

400 WORKING IN CDC. WHAT WE FOUND EARLY ON IS IF

YOU GET THERE IN DAYS, YOU CAN STOP IT IN WEEKS.

IF IT TAKES WEEKS TO GET THERE, IT WILL GO ON FOR MONTHS.

AND IF IT TAKES MONTHS, IT MAY GO ON FOR YEARS.

WE NEED TO SEARCH AND SUPPORT, UNDERSTANDING 90% OF THE

RESPONSE WILL BE LOCAL DOCTORS, NURSES AND COMMUNITY LEADERS.

BUT STILL, THEY NEED FUNDS, THEY NEED LOGISTICS.

THEY NEED SOME PARTNERSHIP ON SOME OF THE MORE SPECIALIZED

ELEMENTS OF CARE AND DISEASE DETECTION AND CONTROL. DAVID:

WALK US THROUGH WHAT YOU MAKE OF THE PLAN THAT WAS FLOATED,

IT'S BEEN STRUCK DOWN BY A KENYAN COURT HERE, TO HAVE A

QUARANTINE FACILITY IN KENYA FOR THOSE FROM THE U.S.

WHO HAVE BEEN EXPOSED TO EBOLA, WHAT DO YOU MAKE OF THAT?

I KNOW THERE HAS BEEN SOME PUSHBACK.

IF YOU HAVE BEEN EXPOSED, THERE IS NO WAY FOR YOU TO GET BACK

TO THE U.S. TO GET TREATMENT. WHAT DO YOU MAKE OF THE PLAN

THAT HAS BEEN FLOATED BY THE U.S. GOVERNMENT? TOM:

I DON'T KNOW THE DETAILS OF IT. BUT FUNDAMENTALLY, IF WE ARE

TALKING ABOUT PEOPLE WHO ARE GOING OVER TO FIGHT THE

EPIDEMIC , THAT'S THE EQUIVALENT TO OUR WAR FIGHTERS

WHO WE SEND INTO DANGER. AND IF THEY GET HURT, WE EXPECT

TO RING THEM BACK TO THIS COUNTRY AND TREAT THEM AS THE

RETURNING HEROES THAT THEY ARE.

NOT TO PUT THEM INTO SOME FACILITY SOMEWHERE.

THE OTHER THING TO SAY IS IT IS IMPORTANT THAT PEOPLE GET GOOD

QUALITY CARE AS QUICKLY AS POSSIBLE IF THEY BECOME ILL.

EVEN THOUGH THERE IS NO PROVEN TREATMENT FOR THIS PARTICULAR

STRAIN OF EBOLA, SUPPORTIVE CARE MAKES A REALLY BIG

DIFFERENCE. IT CAN MAKE THE DIFFERENCE

BETWEEN LIFE AND DEATH.

WE STOP THE 2014-20 16 EPIDEMIC WITHOUT SIGNIFICANT

CONTRIBUTION FROM VACCINATION OR TREATMENT.

SO, IT'S POSSIBLE TO DO WITH THE CORE PUBLIC HEALTH

ACTIVITIES. ISOLATING PATIENTS, PROVIDING

SAFE AND DIGNIFIED BURIAL, CONTACT TRACING AND THEN

QUARANTINE AND CARE FOR CONTACTS WHO BECOME ILL.

CHRISTINA: GIVEN WHERE THIS OUTBREAK IS

RIGHT NOW, SECRETARY OF STATE MARCO RUBIO HAS SAID WE CANNOT

AND WILL NOT ALLOW ANY CASES OF EBOLA TO ENTER THE UNITED

STATES. DO YOU THINK THAT'S A REASONABLE GOAL?

AND WAS THAT THE GOAL IN THE PAST FOR THESE KINDS OF

EPIDEMICS? TOM: IT IS CERTAINLY A GOAL.

HOW REALISTIC IT IS IF IT SPREADS WIDELY IN AFRICA IS

VERY QUESTIONABLE.

PEOPLE TRAVEL FOR BUSINESS, FOR TOURISM, FAMILY REUNIFICATION.

PEOPLE HAVE CONTACTS. PEOPLE GO FROM ONE COUNTRY TO

ANOTHER.

THERE IS NO WAY TO KEEP EVERYBODY OUT.

IT'S REASONABLE TO REDUCE THE RISK THAT THERE WILL BE ANY

SPREAD IN THE U.S. AND THERE ARE REALLY GOOD WAYS

TO DO THAT. WHAT WE DID DURING MY TIME

LEADING THE CDC WAS WHEN A COUPLE OF AMERICANS GOT SICK

OVERSEAS, WE HAVE A SPECIAL BIO CONTAINMENT AIRPLANE THAT

PICKED THEM UP AND BROUGHT THEM TO A BIO CONTAINMENT FACILITY.

AT EMORY UNIVERSITY IN ATLANTA. AND BOTH OF THEM SURVIVED.

NOBODY ELSE GOT INFECTED. AND THAT DID NOT SERVE AS A

DETERRENT FOR PEOPLE TO GO STOP THE OUTBREAK THERE,

UNDERSTANDING THAT THEY WOULD BE WELL CARED FOR IF THEY

BECAME ILL. CHRISTINA: I REMEMBER THAT, I REMEMBER

THAT FLIGHT COMING BACK AND BEING LIVE ON THE AIR. DAVID:

LET ME ASK YOU ABOUT THE LONELINESS ABOUT THE WHO

DIRECTOR MAKING THE TRIP TO THE DEMOCRATIC REPUBLIC OF CONGO TO

SEE THIS FIRSTHAND. IN THE PAST, SOMEONE IN YOUR

POSITION MAY HAVE GONE, WE DON'T HAVE A PERMIT OUT OF THE

CDC RIGHT NOW. USE THAT AS A JUMPING OFF POINT

TO TALK ABOUT THE WAY THE WHO, THE GLOBAL HEALTH APPARATUS IS

OPERATING WITHOUT THE COOPERATION OF THE HAND AND

GLOVE RELATIONSHIP WE HAVE SEEN IN THE PAST BETWEEN THE U.S.

PUBLIC HEALTH INFRASTRUCTURE AND GLOBAL PUBLIC HEALTH

INFRASTRUCTURE. TOM: THERE IS A BOTTOM LINE HERE.

FOR ALL OF ITS PROBLEMS AND CHALLENGES AND WEAKNESSES, THE

WHO IS ABSOLUTELY ESSENTIAL. THERE IS NO REPLACEMENT FOR IT.

THERE IS NO WAY FOR BILATERAL ENGAGEMENT TO MAKE THE KIND OF

INTERACTION AND INTERVENTION THAT THE WHO CAN.

AND THE STRONGER WHO IS, THE SAFER WE ARE AS A COUNTRY.

DURING MY TIME AT WHO, MARGARET CHAN WAS THE DIRECTOR.

SHE AND I WERE ALMOST IN -- WERE IN ALMOST DAILY TELEPHONE

FOR MEDICATION. WE PROVIDED DOZENS OR EVEN

HUNDREDS OF STAFF TO SUPPORT AND STRENGTHEN W HO.

IN THE PAST DECADE, WHO HAS GOTTEN STRONGER.

THEY HAVE CREATED A NEW EMERGENCIES UNIT THAT IS MORE

CAPABLE OF RESPONDING TO THINGS LIKE THIS. BUT, THE U.S.

WAS ALWAYS IN THE LEAD ALONG WITH THE WHO AND NOW WE ARE ON

THE SIDELINES. THAT ALSO MEANS THAT WE HAVE

LESS INTELLIGENCE, LESS INFORMATION ABOUT WHAT'S REALLY

HAPPENING. WE HAVE NOT PAID OUR DUES TO

WHO.

WE HAVE PULLED OUT OVERNIGHT, SEVERAL DOZEN CDC EXPERTS WHO

WERE EMBEDDED WITH WHO.

FUNDAMENTALLY, WHEN WE TURN OUR BACK ON AN ORGANIZATION LIKE

THE WHO, WE CAN'T IMPROVE IT AND WE ARE LESS SAFE. CHRISTINA:

TALK TO US ABOUT WHAT THIS VIRUS IS LIKE AND WHAT THIS

STRAIN IS LIKE. IT'S NOT AS CONTAGIOUS AS KOBE.

YOU HAVE TO BE IN DIRECT CONTACT WITH IT BUT THE REASON

IT IS SO SCARY IS THE OUTCOMES CAN BE VERY BAD.

IF YOU ARE IN A FACILITY THAT IS NOT WHAT YOU HAVE IN ATLANTA

WITH ALL OF THE SUPPORTIVE CARE, HOW DO YOU TREAT IT AND

WHAT'S THE BEST WAY TO PREVENT THE SPREAD GIVEN THE RESOURCES

A LOT OF PEOPLE HAVE AT THEIR DISPOSAL ? TOM:

PEOPLE IS A SCARY DISEASE. IT KILLS A PORTION OF THE

PEOPLE AFFECTED. IT KILLS IN HORRIBLE WAYS,

INCLUDING BLEEDING AND LOSS OF BODY FLUIDS.

IT SPREADS THROUGH CLOSE CONTACT.

ESPECIALLY WITH PEOPLE WHO HAVE DIED FROM EBOLA WHO HAVE A HUGE

NUMBER OF ORGANISMS. THAT'S ONE OF THE REASONS IT'S NOT IN THE

CARDS FOR EBOLA TO SPREAD WIDELY IN THIS COUNTRY.

WE DON'T HAVE THE KIND OF BURIAL PRACTICES OR HEALTH CARE

THAT WOULD LEAD TO WIDESPREAD TRANSMISSION.

ON THE OTHER HAND, IT IS CERTAINLY POSSIBLE THAT A

TRAVELER WOULD COME INTO THIS COUNTRY AS ONE DID IN 2014-2015

WITH EBOLA OR WITHOUT EBOLA AND

WITH SYMPTOMS. AND WHY IN THE GENERAL -- AND THAT'S WHY IN

THE GENERAL PUBLIC, THERE IS NO CAUSE FOR CONCERN.

FOR DOCTORS AND NURSES ON THE FRONT LINES, KEEP AN EYE OUT

FOR PEOPLE WHO HAVE TRAVELED. BUT THERE IS ONE ISSUE BEYOND

THIS THAT I THINK IS REALLY IMPORTANT TO EMPHASIZE.

EVEN THOUGH THIS STRAIN OF EBOLA AND THIS EBOLA OUTBREAK

IS NOT GOING TO CAUSE A PANDEMIC, IT'S NOT GOING TO

CAUSE A SIGNIFICANT RISK TO LARGE NUMBERS OF AMERICANS, IT

IS A STRESS TEST. IT IS A STRESS TEST WORLD IS NOT DOING

WELL AT. I WOULD SAY SO FAR, WE ARE

FAILING. AND THAT BODES ILL FOR THE

FUTURE. THAT MEANS THE NEXT TIME THERE

IS A PANDEMIC AND THERE WILL BE A NEXT PANDEMIC, WE ARE NOT

WELL PREPARED. OUR DEFENSES ARE DOWN.

THE WHO NEEDS TO BE STRONGER. THE CDC NEEDS TO BE ROBUST.

WHAT WE SAW IN RECENT WEEKS IS ANOTHER DEADLY BLOW TO THE U.S.

CDC. IN THE PAST, WE HAVE SEEN 3000

STAFF PUSHED OUT. VIRTUALLY ALL LEADERS OF THE

CDC GONE, ACTING PART-TIME. NOW, WHAT WE HAVE SEEN IS THE

STATE DEPARTMENT HOLD MORE THAN 100 DIFFERENT CONTRACTS THE CDC

HAS WITH DIFFERENT ORGANIZATIONS AROUND THE WORLD

THAT PROVIDE CARE FOR 8 MILLION PEOPLE LIVING WITH HIV AND CAN

SUPPORT FINDING PROBLEMS QUICKLY AND STOPPING THEM SOON.

THAT PLAN IS TO ROLL OUT IN THE COMING WEEKS.

AND IT WOULD RESULT IN THE CDC HAVING TO CALL BACK HUNDREDS OF

DISEASE DETECTIVES, SHUT OFFICES, OUTPOSTS IN COUNTRIES

WHERE WE CAN SUPPORT, COUNTRIES THAT FIND AND STOP OUTBREAKS

FASTER. THIS IS SOMETHING THAT NOT ONLY

WOULD DEVASTATE THE CDC'S GLOBAL HEALTH FOOTPRINT, BUT

MAKE AMERICANS MUCH LESS SAFE. SO IF THE PLAN OF THE STATE

DEPARTMENT IS NOT PAUSED AND RUN IN A CAREFUL, THOUGHTFUL

WAY, WE WILL BE EVEN LESS PREPARED FOR THE NEXT PANDEMIC.

DAVID: THANK YOU FOR YOUR TIME ON THIS

SATURDAY.

NOW WITH THE RESULT TO SAVE LIVES ORGANIZATION.

THE MOST RECENT STATEMENT WE GOT WERE FINANCIAL COMMITMENTS.

BUT ALSO IT NOTED THE U.S., MEXICO AND CANADA HAVE

ANNOUNCED A LINE PUBLIC HEALTH MEASURES FOR INDIVIDUALS COMING

FROM AFRICAN REGIONS AT GREATEST RISK FROM THE EBOLA

VIRUS.

CHRISTINA: THE TEAM IS ALREADY IN EUROPE.

WE WILL HAVE TO SEE. EVERYTHING IS BIGGER IN TEXAS

INCLUDING THE PRIMARY UPSETS. WE HAVE TWO TEXAS EXPERTS TO

TALK ABOUT THE LONE STAR STATE WHEN WE COME BACK.

STICK WITH US. IT IS "BLOOMBERG THIS WEEKEND."

♪

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

ANOTHER TENNIS GREAT HAS BEEN KNOCKED OUT OF THE FRENCH OPEN.

AFTER A SURPRISE UPSET OF JANIK CENTER, -- SINNER, NOVAK

DJOKOVIC IS OUT. HE WAS DEFEATED BY FONSECA.

THE PJ -- PGA TOUR CONTINUES.

JORDAN SMITH LEAVES AT 10 UNDER PART.

FOLLOWED BY THREE PEOPLE TIED FOR SECOND.

THIS FIRST TAKE ON THE OKLAHOMA CITY THUNDER.

THAT SERIES IS TIED AT THREE APIECE.

TO HOCKEY, THE HAIR -- CAROLINA HURRICANES TOPPED THE MONTREAL

CANADIANS, 6-1 AND WILL TAKE ON THE GOLDEN NIGHTS IN THE

STANLEY CUP FINALS ON TUESDAY. -- WHO WILL BE GIVEN THE CHANCE

TO ATTEND THE BIG UFC FIGHT PLANNED OUTSIDE OF THE WHITE

HOUSE. THERE IS ONE CAVEAT. SEEN REPORTING TICKETS WILL

ONLY BE GIVEN TO THOSE WHO MEET MILITARY BODY COMPOSITION --

CNN REPORTING TICKETS WILL ONLY BE GIVEN TO THOSE WHO MEET

MILITARY BODY COMPOSITION STANDARDS.

LAST YEAR, PETE HEGSETH SAID THERE WILL BE NO FAT TROOPS OR

FAT GENERALS OR ADMIRALS IN THE HALLS OF THE PENTAGON. DAVID:

BETTER NOT TO RESPOND TO THAT. IT WILL BE ON JUNE 14,

PRESIDENT TRUMP'S BIRTHDAY. CHRISTINA:

MY DAD DID 20 YEARS IN THE ARMY. AFTER AN EXCEEDINGLY EXPENSIVE

PRIMARY CAMPAIGN THAT ENDED WITH KEN PAXTON DEFEATING JOHN

CORNYN, THE STAGE IS SET FOR WHAT'S BOUND TO BE A BRUISING

AN EXCEEDINGLY EXPENSIVE CAMPAIGN FOR THE SENATE SEAT.

AHEAD OF THE GENERAL ELECTION, VOTERS WILL CHOOSE BETWEEN

PAXTON AND DEMOCRAT JAMES TALARICO. DAVID:

TALARICO HAS A SLIGHT EDGE OVER PAXTON BUT IT IS A LONG WAY

UNTIL NOVEMBER. JOINING US, TWO BUREAU CHIEFS.

JULIE, LET ME START WITH YOU. WE WILL TALK ABOUT THE POLLING

AND THE SOCIAL ISSUES. T THIS UP FOR US.

LET'S START WITH HOW EXPENSIVE THAT PRIMARY WAS AND WHAT THAT

PORTENDS FOR THIS GENERAL ELECTION CAMPAIGN.

>> THIS GENERAL ELECTION CAMPAIGN, EXPECT IT TO BE WELL

OVER $100 MILLION. I WANT TO TAKE YOU BACK TO 2018

WHEN BETO O'ROURKE AND TED CRUZ, BETWEEN THE TWO OF THEM,

THAT WAS 120 MILLION DOLLARS IN 2018. I EXPECT THIS TO BE MORE

EXPENSIVE WHEN IT WAS ALL SAID AND DONE.

REPUBLICANS SPENT A LOT OF MONEY GOING AFTER EACH OTHER IN

THE PRIMARY. SO NOW THEY HAVE TO GET READY

FOR A GENERAL ELECTION. WHEREAS JAMES TALARICO HAS HAD

PLENTY OF TIME TO FUND RAISE. HE HAS RAISED $3 MILLION SINCE

THE PRIMARY RESULT ALONE. EXPECT THIS TO BE A LOT OF

MONEY. CHRISTINA:

DAVID, I WANT TO ASK ABOUT THESE KIND OF DUELING

NARRATIVES SINCE WE HAVE DUELING BUREAU CHIEFS.

OBVIOUSLY, CAN PAXTON HAS QUITE THE HISTORY.

HE HAS ETHICS CONCERNS AND HIS PERSONAL LIFE IS A BIT MESSY.

REPUBLICAN VOTERS IN THE PRIMARY SEEM TO NOT BE BOTHERED

BY THAT. I WONDER IF YOU GO INTO THE

GENERAL, IF THAT WILL BE MORE OF A CONCERN.

I AM HIGHLY AMUSED AT THE SWIPES SOME REPUBLICAN

OPERATIVES HAVE BEEN TAKING AT TALARICO INCLUDING ACCUSING HIM

OF BEING A VEGAN. HE IS NOT, FOR THE RECORD.

AND ACCUSING HIM OF HAVING A SECRET VEGAN GIRLFRIEND.

WHAT'S GOING ON AND WHAT OUR BOAT IS REALLY GOING TO CARE

ABOUT?

>> ATTORNEY GENERAL KEN PAXTON HAS WON SEVERAL STATEWIDE

ELECTIONS IN TEXAS WITH HIS BAGGAGE KNOWN TO THE VOTERS.

ONE OF THE CHALLENGES FOR DEMOCRATS WILL BE MAKING THOSE

ISSUES SALIENT AGAIN.

THIS ARGUMENT THAT CAN PAXTON -- ATTORNEY GENERAL KEN PAXTON

IS NOT FIT FOR THE JOB, JOHN CORNYN TRIED THAT IN THE

PRIMARY AND IT DID NOT WORK AT ALL WITH REPUBLICAN VOTERS.

IT MAY NOT WORK HERE WITH GENERAL ELECTION VOTERS EITHER.

BUT THAT'S WHAT JAMES TALARICO IS FOCUSED ON SO FAR FOR HE

BELIEVES THAT KEN PAXTON HAS NOT RUN A GENERAL ELECTION

SINCE 2022.

SOME OF THESE -- HE MAY BE MORE VULNERABLE THAN IN THE PAST.

WHAT PAXTON IS TRYING TO DO IS SEEM NOT TEXAN OR AS IN OTHER

TO THE VOTERS.

-- AN OTHER TO THE VOTERS. HE'S DONE THAT BY USING THE

VEGAN WORD. SAYING THIS CANDIDATE IS

OUTSIDE OF WHAT A TEXAN IS. ATTORNEY GENERAL CAN PAXTON

MOVED HERE FROM ELSEWHERE. THEY ARE BOTH TEXANS NOW BUT

THE QUESTION OF WHAT IT MEANS TO BE A TEXAN IS AT THE CENTER

OF THIS RACE. DAVID:

I'M CURIOUS HOW MUCH THIS IS STICKING WITH THE TEXAS

ELECTORATE. COULD THIS BE SOLVED IF YOU

WENT TO LOCKHART AND SMITTY'S AND USED WHITE BREAD TO EAT THE

BARBECUE? IS THIS SOMETHING THAT IS

LIKELY TO STICK AS WE MOVE TO NOVEMBER OR COULD HE GET THIS

OUT OF VOTERS MINDS PRETTY QUICKLY?

>> I THINK THIS IS SOMETHING YOU WILL SEE UNTIL NOVEMBER.

YOU TALK ABOUT GOING TO A BARBECUE, JOINING AND DOING

THAT KIND OF THING, HE WILL HAVE OPPORTUNITIES TO DO IT.

THE QUESTION IS IS THIS ALL GOING TO BE PERSONAL ATTACKS

AND WHO IS MORE TEXAN AND WHO HAS DONE THIS OR THAT OR DO

THEY GET DOWN TO THE ISSUES OF AFFORDABILITY?

CERTAINLY, THERE IS TIME AS MY DUELING BUREAU CHIEF KNOWS.

IT'S A LONG TIME IN POLITICS UNTIL THE GENERAL ELECTION.

I EXPECT THESE THEMES TO COME UP BECAUSE THEY WERE SO

PREVALENT DURING THE PRIMARY.

CHRISTINA: JULIE, IS THERE ENOUGH BARBECUE

TO BE EATEN? WHEN YOU LOOK AT THE NUMBERS,

THIS IS NOT A PLACE THAT HE LIKES DEMOCRATS, EVEN AT A TIME

WHEN THERE ARE A LOT OF FOLKS, BASED ON POLLING, THAT ARE

UNHAPPY WITH THE WAY THINGS ARE BEING RUN WITH THE REPUBLICAN

MAJORITY. AS DAVID REPORTS, THE

KRYPTONITE OF KEN PAXTON'S PROBLEMS, IT'S OLD.

VOTERS EITHER KNOW IT OR DON'T. ARE THE NUMBERS THERE, NO

MATTER HOW WELL TALARICO DOES, TO PULL OUT A VICTORY?

>> DAVID SAID IT PERFECTLY. A LOT IS ALREADY KNOWN.

JOHN CORNYN REALLY TRIED TO GET THAT OUT MORE.

BUT THIS HAS BEEN KNOWN FOR A LONG TIME AND HE CONTINUES TO

GET REELECTED. SO, YOU HAVE TO KEEP THAT IN

MIND. TEXAS HAS NOT ELECTED A

DEMOCRAT TO STATEWIDE OFFICE SINCE 1994.

JAMES TALARICO IS REALLY GOING TO HAVE TO APPEAL TO MODERATES

AND GET MORE PEOPLE REGISTERED TO VOTE.

THAT IS SOMETHING THAT BETO O'ROURKE TRIED TO DO BUT ONLY

CAME WITHIN THREE. DAVID: WE WOULD LOVE TO SEE THESE TWO

MEN ON STAGE, HASHING IT OUT AND MAKING THEIR PLATFORMS

KNOWN. TRADING BARBS WITH ONE ANOTHER.

WHAT'S THE LIKELIHOOD OF THAT HAPPENING BETWEEN NOW, MAY, AND

NOVEMBER?

>> I WOULD SAY IT IS CLOSE TO ZERO THAT THAT SCENARIO PLAYS

OUT.

I THINK BACK TO 2014 WAS THE LAST TIME HE WAS IN SOME KIND

OF ON STAGE DEBATE. PART OF THE REASON IS HE HAS

NEVER HAD TO DO THAT. HE HAS ALWAYS BEEN A POLE

POSITION IN HIS RACES. HERE AS WELL, I THINK IF WE SEE

A DEBATE, IT WILL BE BECAUSE REPUBLICANS ARE QUITE WORRIED

THAT THEY ARE NOT GETTING THEIR MESSAGE ACROSS AND THAT JAMES

TALARICO IS APPEALING ACROSS PARTY LINES.

AT THIS POINT, I CAN'T IMAGINE A SCENARIO WHERE HE DOES AGREE

TO A DEBATE. BUT I THINK IF WE SEE ONE, IT

IS A SIGNAL THAT DEMOCRATS ARE CLOSER THAN REPUBLICANS WANT

THEM TO BE. CHRISTINA: WHAT HAPPENS TO THE CORN AND

VOTERS? WE HAVE A POLL THAT SAYS MOST

OF THEM SAID THEY WOULD CHOOSE PAXTON, 23 PERCENT UNDECIDED.

DO YOU THINK TALARICO CAN GET ENOUGH OF THEM?

>> THAT'S WHAT DEMOCRATS HAVE BEEN TRYING TO DO HERE FOR

YEARS. A LOT OF THIS DEPENDS ON HOW

MUCH IS ON PERSONAL ISSUES AND HOW MUCH HE REALLY DOES GET

DOWN TO THE ISSUES THAT MATTER TO VOTERS.

IT'S A STEEP ROAD FOR ANY DEMOCRAT.

AS DAVID SAID, THERE -- THEY WILL CERTAINLY BE TRYING.

BUT IT WILL TAKE A SERIOUS AMOUNT OF EFFORT AND YOU WILL

HAVE TO WORK TO PULL THOSE VOTERS OVER.

MANY OF THEM, LIKE YOU POINTED OUT, SAID THEY WILL VOTE FOR

KEN PAXTON WHEN THEY WERE PLANNING ON VOTING FOR JOHN

CORNYN. DAVID: TWO TEXAS BUREAU CHIEFS ON THE

SHOW, A FIRST FOR US.

JULIE FINE, R TEXAS BUREAU CHIEF -- OUR TEXAS BUREAU

CHIEF, BASED IN DALLAS. DAVID GOODMAN, BASED IN HOUSTON.

REALLY FASCINATING. THERE IS TALK EVERY CYCLE ABOUT

THE PURPLEING OF TEXAS. JULIE STARTED US OFF THERE,

TALKING ABOUT BETO O'ROURKE.

IT SEEMED LIKE A REAL VIABLE OPTION FOR DEMOCRATS. CHRISTINA:

IT SEEMS LIKE AN UPHILL BATTLE BUT WE HAVE JUST A LITTLE BIT

OF TIME BEFORE NOVEMBER. UP NEXT, THE NEWEST TREND FOR

MEN AND WHETHER DAVID GURA HAS HOPPED ON THAT BANDWAGON.

LISA WILL TELL US. IF YOU ARE HEADING OUT THE

DOOR, TAKE US WITH YOU. YOU CAN WATCH US WHEREVER YOU

GO ON BLOOMBERG TV, BLOOMBERG RADIO AND ON THE BLOOMBERG

BUSINESS APP. WE WILL BE RIGHT BACK. ♪

CHRISTINA: WELCOME BACK TO BLOOMBERG THIS

WEEKEND, IT'S TIME FOR BT DUBS. LISA MATEO WILL CATCH US UP ON

SOME OF THE STORIES WE MAY HAVE MISSED. LISA:

ARE YOU A FAN OF COLOGNE? DAVID: NO.

I'M NOT. I WOULD LIKE TO PRESENT A

NEUTRAL POSTURE ON THE SHOW. LISA: WE WILL BE SURPRISED.

IT SAYS MEN ARE SPRAYING THEMSELVES 100 TIMES.

IT IS A FRAGRANCE FRENZY. LISTEN TO THIS. CHRISTINA:

WHAT IS HAPPENING? LISA:

THERE IS AN INFLUENCER YOU HAVE TO -- INFLUENCER OUT THERE

TELLING MEN YOU HAVE TO LAYER YOUR FRAGRANCES ALL AT ONCE TO

CREATE YOUR SIGNATURE SENT. EVEN IF IT MEANS SPRAYING

YOURSELF 100 TIMES. HIS NAME IS OVERSPRAY JAY.

CHRISTINA: IS THIS SOMEONE YOU WANT TO BE

LISTENING TO? LISA: HE SAYS IF YOU AIN'T SHINING,

ARE YOU EVEN APPLYING? YOU HAVE TO DO IT BECAUSE

COSMETIC COMPANIES LOVE IT. YOU ARE BUYING MORE OF THESE.

IT'S NOT ONLY THAT, MEN ARE ADDING THE LOTIONS.

MY HUSBAND HAS THE LOTION AND THE SPECIAL DEODORANT.

HE HAS NOT SO MUCH THE COLOGNE BUT THE ACCESSORIES TO GO WITH

THE SPRAY OF COLOGNE. SOME OF THESE ARE HIGH-END.

A BOTTLE OF COLOGNE CAN BE ABOUT $400.

MY SON HAS DECREED ONE THAT IS $400 AND I WAS LIKE SOMEBODY

NEEDS TO PITCH IN FOR THE RENT.

IT'S BECOMING A THING, YOU HAVE TO SPRAY A LOT OF TIMES. DAVID:

WHAT'S THE WORD FOR SCENT S. IT'S KIND OF CRAZY TO APPLY

DIFFERENT TYPES OF COLOGNES AND LOTIONS. CHRISTINA:

I DO APPLY PERFUME SOMETIMES. IF ONE IS TOO FLORAL OR MANLY,

I WILL DO A HALF OF A SPRITZ OF BOTH.

I DIDN'T KNOW IT WAS A THING. LISA: CAN'T DO IT. CHRISTINA:

DO YOU THINK ABOUT WHAT YOUR LOTION SMELLS LIKE VERSUS WHAT

YOU'RE COLOGNE SMELLS LIKE VERSUS WHAT YOUR DEODORANT

SMELLS LIKE? LISA: NEVER. CHRISTINA:

I DO TO THAT -- DO DO THAT BUT NOT TO THIS EXTENT. LISA:

I DON'T WEAR AT WORK. YOU KNOW WHAT TIME IT IS,

GRADUATION SEASON.

YOU HAVE THE

-- YOU HAVE THE ANNOUNCEMENTS. THE WASHINGTON POST SAYS WHAT

TO DO WHEN A GRADUATION ANNOUNCEMENT FEELS LIKE AN

INVOICE. THIS APPLIES TO BABY SHOWERS

AND THE WEDDINGS. WHAT DO YOU DO WHEN YOU GET AN

ANNOUNCEMENT? IT'S NOT ACTUALLY AN

INVITATION, THERE IS NO DAY AND PLACE, IT'S JUST AN

ANNOUNCEMENT. THE WASHINGTON POST SAYS ARE

YOU SUPPOSED TO GET A GIFT OR JUST BE HAPPY?

SOME COME WITH GIFT REGISTRIES TOO.

I DID NOT KNOW THERE WAS SUCH A THING.

DIGITAL PAYMENTS, THERE IS A VENMO SCANNED QR CODE.

BUT THE RULES, IN CASE YOU ARE WORRIED, THE WASHINGTON POST

SAYS TREAT THEM AS COURTESY NOTICES.

THEY DO NOT REQUIRE GIFTS. IF YOU ATTEND A GRADUATION

PARTY, THEN YES, THE GIFT. IF YOU ARE INVITED, BUT YOU

CAN'T ATTEND, THAT IS ANOTHER THING, DO YOU STILL SEND A GIFT?

THEY ARE SAYING YOU DON'T HAVE TO.

CHRISTINA: WE HAVE BOUGHT A HOUSE, WE'VE

RENTED A NEW CAR, WE HAVE DECIDED TO BUY A NEW ARAB

JEANS, THE BAR FOR THINGS THAT PEOPLE ARE ANNOUNCING OR

CELEBRATING -- A NEW PAIR OF

JEANS, THE BAR FOR THINGS THAT PEOPLE ARE ANNOUNCING OR

CELEBRATING -- DAVID: WHO ARE YOU, I WONDER.

>> I DON'T DO THOSE THINGS BECAUSE IT'S MY LIFE CHOICES.

LISA: I HAVE SIX PARTIES COMING UP,

JUST TO LET YOU KNOW. THIS IS FROM THE WEEKEND.

IT SAYS THE WORLD'S BIGGEST SCRABBLE TOURNAMENT IN BANGKOK.

IT'S THE BIGGEST SCRABBLE TOURNAMENT IN THAILAND.

30 COUNTRIES COMPETING. YOU HAVE BLOOMBERG'S THAILAND

REPORTER, RANDY, TALKING ABOUT WHY THIS BOARDGAME IS SO

POPULAR IN THE SOUTHEASTERN ASIAN COUNTRY. LISTEN UP.

>> PART OF THAILAND'S SUCCESS CAN BE TRACED BACK TO THE

CLASSROOM. ENGLISH TEACHING HAS LONG BEEN

CRITICIZED FOR FOCUSING HEAVILY ON MEMORIZATION AND EXAMS. LOTS

OF WORDS AND GRAMMAR BUT NOT MUCH CONVERSATION.

THOSE EXACT SKILLS TRANSLATE SURPRISINGLY WELL TO SCRABBLE.

THERE IS ALSO A BROADER PATTERN HERE.

THAILAND HAS LONG PUNCHED ABOVE ITS WEIGHT IN SPORTS LIKE

BOXING.

AREAS WHERE SMART TRAINING CAMP OUTWEIGH THE ADVANTAGES OF

BIGGER NATIONS. SCRABBLE HAS BECOME ONE OF

THOSE ARENAS. THE GAME WAS INTRODUCED THROUGH

HIGH SCHOOLS IN THE 1980'S. OVER TIME, IT EVOLVED INTO

SOMETHING MUCH BIGGER. A PATHWAY TO SCHOLARSHIPS AND

ELITE UNIVERSITIES.

DESPITE RANKING RELATIVELY LOW IN GLOBAL ENGLISH PROFICIENCY,

THAILAND HAS PRODUCED MULTIPLE WORLD SCRABBLE CHAMPIONS AND

REMAINS THE ONLY ASIAN COUNTRY TO EVER DO SO.

AND NOW, A NEW GENERATION IS

EMERGING AMONG THE YOUNGEST COMPETITORS

THIS WEEKEND OUR NINE-YEAR-OLD THAI TWINS.

AT THE HIGHEST LEVEL, SCRABBLE ISN'T JUST ABOUT KNOWING WORDS

ARE HAVING GOOD MEMORY. IT'S ALSO ABOUT STRATEGY AND

PSYCHOLOGY. AND SOMETIMES PURE LUCK IN THE

DRAW OF THE TILES.

>> I LOVE ME A GOOD SCRABBLE GAME. I GET COMPETITIVE.

I GET NASTY. CHRISTINA: SHOUT OUT TO RANDY.

HE SHOT AND THAT WHOLE THING ON VERY LITTLE NOTICE.

I AM DYSLEXIC SO I AM NOT PLAYING SCRABBLE. DAVID:

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

STAY WITH US. THE NEXT HOUR OF BLOOMBERG THIS

WEEKEND STARTS RIGHT NOW. ♪

>> WELCOME TO "BLOOMBERG THIS WEEKEND"

LIVE FROM NEW YORK WITH DAVID GURA, CHRISTINA RUFFINI, AND

LISA MATEO. THE LATEST HEADLINES, KEY

ANALYSIS, BIG INTERVIEWS, AND THE STORIES THAT HIT HOME ON

YOUR DAYS OFF.

DAVID: WELCOME TO "BLOOMBERG THIS

WEEKEND." I'M DAVID GURA.

CHRISTINA: I'M CHRISTINA RUFFINI AND WE

ARE HE WOULD LISA MATEO. WE HAVE A LOT OF NEWS TODAY

FROM A VARIETY OF PLACES. SOME COLLEAGUES WHO HAVE BEEN

TRACKING EVERYTHING AT THE DEFENSE SUMMIT IN ASIA.

TOPICS DOES YOUR ARE MAYBE NOT BEING SAID BY SOME AMERICAN

OFFICIALS. THINGS THAT HAVE BEEN SAID AND

WE HAVE BEEN TRACKING WAS GOING ON WITH THE RON.

THE PRESIDENT HUNKERED DOWN AND SAID HE WOULD COME UP WITH A

DECISION. DAVID: IT HAS NOT HAPPENED.

WHAT'S HAPPENING IN THE MIDDLE EAST IS THROUGH THIS SECURITY

AND DEFENSE SUMMIT TAKING PLACE IN SINGAPORE, THE SHANGRI-LA

DIALOGUE. WE WILL RECAP WHAT HE HAD TO

SAY AS WE LOOK AHEAD TO WHAT HAPPENS WITH THE CONFLICT IN

IRAN. LET'S GET A CHECK OF THE HEADLINES WITH LISA. LISA:

AND IRANIAN BALLISTIC MISSILE STRIKE HAS INJURED SEVERAL

AMERICANS. IT DAMAGED TWO REAPER STRIKE

DRONES. KUWAITI AIR DEFENSES INTERCEPTED THE MISSILE BUT

FALLING DEBRIS STRUCK AN AIR BASE. FIVE PEOPLE, INCLUDING

CONTRACTORS, ACTIVE-DUTY PERSONNEL SUFFERED MINOR

INJURIES. NO COMMENTS FROM CENTRAL

COMMAND. PRESIDENT TRUMP CONSIDERS A

DEAL TO EXTEND A CEASE-FIRE BUT STILL NO ANNOUNCEMENT AFTER

ROUGHLY TWO HOUR MEETING IN THE SITUATION ROOM ON FRIDAY.

THE PRESIDENT IS DEMANDING IRAN ABANDONS ITS NUCLEAR PROGRAM,

GIVE UP ITS Y ENRICHED URANIUM.

IN SINGAPORE, QATAR'S DEPUTY PRIME MINISTER SAID THEY OPPOSE

TOLLS THROUGH THE STRAIT OF HORMUZ.

AT THE REAGAN NATIONAL ECONOMIC FORUM, TREASURY SECRETARY SCOTT

BESSENT SUGGESTED THE TRUMP ADMINISTRATION COULD LIFT

SANCTIONS ON IRAN DEPENDING ON HOW THE STANDOFF DEVELOPS.

>> WE PUT MORE SANCTIONS ON YESTERDAY.

WE SANCTIONED THEIR AIRLINES. WE HAVE SOME OTHER FINANCIAL

TARGETS. THERE IS A LOT MORE WE CAN DO

IF WE HAVE TO. THERE ARE SOME THINGS WE CAN

TAKE OFF TO HELP THE IRANIAN PEOPLE. LISA:

HE SUGGESTED THE TREASURY WILL MAKE A COIN WITH TRUMP'S IMAGE

ON IT TO MARK THE NATION'S 250TH ANNIVERSARY.

PRESIDENT TRUMP SAYS HE'S BACKING AWAY FROM HIS PROPOSED

RENOVATION OF THE KENNEDY CENTER AND RETURNING CONTROL OF

IT TO CONGRESS. IT COMES AFTER A FEDERAL JUDGE

BLOCKED THE KENNEDY CENTER BOARD FROM CLOSING THE

PERFORMING ARTS VENUE IN ORDER TO THE PRESIDENT'S NAME REMOVED

FROM THE BUILDING. IN ANOTHER SETBACK, A FEDERAL

JUDGE HAS TEMPORARILY BLOCKED PAYMENT FOR ANY CLAIMS TO A NEW

$1.8 BILLION SETTLEMENT FUND FOR THE PRESIDENT ALLIES WHO

BELIEVED THEY WERE VICTIMS OF A WEAPONIZED GOVERNMENT.

THE JUDGE SCHEDULED A HEARING FOR WHETHER TO EXTEND THAT

ORDER. DAVID: THE ADMINISTRATION ACTING LIKE

IT'S A DONE DEAL BUT WITH THE COURTS AND CONGRESS THAT IS NOT

LOOKING LIKE IT'S GOING TO BE THE CASE. CHRISTINA:

EVEN A PUSHBACK FROM SOME OF THE PRESIDENT STRONGER ALLIES.

IT MAKES PEOPLE HAVE A BIT OF PAUSE. DAVID:

LISA, THANK YOU FOR THE HEADLINES.

PRESIDENT TRUMP LEAVING THAT SITUATION ROOM MEETING WITHOUT

A DECISION ON A PROPOSED PEACE PLAN WITH IRAN.

WE SAW THE ATTACK OF A BALLISTIC MISSILE STRIKE ON A

KUWAITI AIR BASE TO LEFT SEVERAL AMERICANS WITH MINOR

INJURIES AND DAMAGES TO U.S. DRONES. CHRISTINA:

EXPENSE OF U.S. DRONES. BACK WITH US IS UAE BUREAU

CHIEF DANA KHRAICHE AND WEAKEN SENIOR EDITOR WENDY BENJAMINSON.

WENDI, I THINK I KNOW THE ANSWER BUT HAVE WE HEARD ANY

SIGNS OF LIFE OR UPDATE OR MOVEMENT FROM THE WHITE HOUSE

AS WE ARE STILL AWAITING SOME FORM OF IF NOT RESOLUTION,

MOVEMENT ON A DECISION FROM THE PRESIDENT AND WHETHER OR NOT

THERE IS ANY KIND OF A SHORT-TERM DEAL? WENDY:

THE SHORT ANSWER IS NO. WE HAVE NOT HEARD ANYTHING YET,

ALTHOUGH WE ARE EXPECTING WE WILL HEAR FROM HIM THIS MORNING.

PARTICULARLY AS HE WAKES UP OR WAS INFORMED OVERNIGHT ABOUT

THE INJURIES DAVID MENTIONED TO A HANDFUL OF AMERICAN TROOPS AT

A U.S. BASE IN KUWAIT. GIVEN THE FACT HE APPARENTLY

WAS NOT READY TO SIGN THIS AGREEMENT AFTER THE DISCUSSION

IN THE SITUATION ROOM, I DON'T THINK THIS EVENT WILL PUSH THEM

ANY CLOSER TOWARD THAT FACT. TOWARD HIM BEING WILLING TO

SIGN AN AGREEMENT WITH IRAN GIVEN THE FACT THERE ARE

ALREADY ALL THESE STICKING POINTS.

HE HAD A BAD DAY YESTERDAY. A NUMBER OF RULINGS WENT

AGAINST HIM.

I THINK HE'S NOT GOING TO BE IN A MOOD TO DEAL WITH THIS TODAY.

DAVID: LET ME ASK ABOUT WHAT MOVEMENT

WE HAVE SEEN. A LOT OF THIS IS NOT BEHIND

CLOSED DOORS BUT THE PAPERS SHIFTED BACK AND FORTH VIA

PAKISTANI INTERMEDIARIES. WE KNOW WITH THE RED LINES ARE.

OPENING THE STRAIT OF HORMUZ, SURRENDERING ITS URANIUM AND

ENDING ITS NUCLEAR PROGRAM. WE KNOW THAT WELL.

WE NOTE IRAN HAS PUSHED BACK AGAINST THE NUMBER OF THOSE

ITEMS. WHERE IS THE ROOM FOR COMPROMISE AND ARE THERE ANY

SIGNS FROM THE RESPONSE WE HAVE GOTTEN THROUGH SEMI-OFFICIAL

NEWS AGENCIES OF WHERE IRAN MIGHT BE WILLING TO BUDGE ON

THIS ONE PAGE DOCUMENT ON THESE PRINCIPLES?

DANA, I WILL START WITH YOU. DANA: THANK YOU.

FROM IRAN PERSPECTIVE THEY ARE NOT BUDGING ON THE ONE THING

FROM WHAT WE HAVE SEEN RECENTLY TODAY FROM STATE RUN AGENCIES

THAT THEY ARE NOT BUDGING ON THIS HORMUZ TALK.

A LAWMAKER SAID THAT THERE IS A BILL IN PARLIAMENT.

IT WILL BE FINALIZED AND IT'S ON TRACK TO BE PASSED INTO A

LAW.

HE SAID ONLY IRAN AND OMAN CAN DECIDE ON THE MANAGEMENT OF THE

STRAIT OF HORMUZ AND SAYING OMAN HAS ALREADY GIVEN

PRELIMINARY APPROVAL. THE IRANIANS WANT TO OPEN OR

REOPEN THE STRAIT OF HORMUZ BUT THEY WANT TO HAVE SOME SORT OF

SUPERVISORY ROLE OVER THE STRAIT.

THE WAR REALLY OPENED IRAN;'S EYES ON THEIR LEVERAGE.

ONCE THEY DID BLOCK THE STRAIGHT THEY UNDERSTOOD HOW

MUCH LEVERAGE THEY HAD, NOT JUST OVER THE U.S.

BUT THE GLOBAL ECONOMY. IT IS HARD TO SEE THEM

ABANDONING THIS ROLE THAT THEY WANT TO PLAY. THAT IS ONE.

TWO, FROM WHAT ANALYSTS ARE SAYING AND STATE RUN MEDIA HAS

BEEN SAYING, THIS IS A WIN FOR IRAN NO MATTER WHAT BECAUSE THE

U.S. IS CONCEDING TO THEIR DEMANDS.

THAT IS NOT WHAT PRESIDENT TRUMP OR THE U.S.

ADMINISTRATION ONCE THE IRANIANS -- WANTS THE IRANIANS

TO THINK. THIS HAS EMBOLDEN THEM SO MUCH

AND THEIR CAPABILITY WITH STANDING ALL PRESSURE, ALL

SANCTIONS, AND THE NAVAL BLOCKADE.

A LOT OF ANALYSTS ARE SAYING IRAN CAN PLAY THIS OUT AS LONG

AS IT CAN AND THIS IS ANOTHER LEVERAGE FOR THEM.

ON THE NUCLEAR SIDE, IRANIANS HAVE SAID WE CAN SIGN AN MOU.

IT IS FINE IF WE FREEZE IT BUT THERE'S NO ABANDONING OF THE

NUCLEAR PROGRAM. CHRISTINA:

MIXED MESSAGING ALMOST IMMEDIATELY AFTER LIGHT

REPORTING AN MOU WAS IN THE OFFING WITH THE U.S.

SIDE SANK NUCLEAR ISSUES WILL BE INCLUDED AND IRAN SAYING NOT

SO FAST, WE HAVE NOT AGREED TO THAT.

THAT WILL BE A SEPARATE ISSUE. I WANT TO BROADEN OUT A BIT.

WE HAVE BEEN TRACKING NEWS OUT OF THE SHANGRI-LA CONFERENCE IN

SINGAPORE. THE SECRETARY OF DEFENSE IS

THERE AN PETE HEGSETH HAS BEEN DELIVERING INTERESTING MESSAGES

TO ALLIES.

>> THEY BELIEVE THEY CAN FREE RIDE ON THE GENEROSITY OF THE

AMERICAN TAXPAYER. HEAR US NOW. THOSE DAYS ARE OVER.

ALLIES WHO REFUSED TO STEP UP AND CARRY THEIR OWN WAIT FOR

OUR COLLECTIVE DEFENSE WILL FACE A CLEAR SHIFT IN HOW WE DO

BUSINESS. CHRISTINA: WHO IS HE SPEAKING ABOUT?

IS THERE A SPECIFIC TARGET? EUROPEAN ALLIES WHO THE

PRESIDENT WAS FRUSTRATED WITH ABOUT NOT DELIVERING THE

TARIFFS ? ASIAN ALLIES? HOW WAS THAT MESSAGE GOING TO

LAND? WENDY:

IT WAS LARGELY AT A EUROPEAN AUDIENCE.

NATO IS NOT DOING MUCH FOR THE U.S.

AND THEREFORE, IN THEIR MINDS, WHY SHOULD WE BE PAYING SO MUCH

FOR IT? TRUMP DID SUCCESSFULLY GET MANY

NATIONS TO UP THEIR CONTRIBUTION TO NATO AT THE

TIME. HE'S ALSO SPEAKING A LITTLE TO

THE ASIAN ALLIES. JAPAN FOR INSTANCE.

FOR THE LAST 70 YEARS THE U.S. HAS BEEN PROVIDING A GREAT DEAL

OF DEFENSE AID TO THEM AND NOW THAT WE ARE PAST WORLD WAR II,

THE SENSE IS THAT JAPAN WANTS TO HAVE MUCH MORE OF A MILITARY

OF ITS OWN. IT NEEDS TO SPEND SOME OF THAT

MONEY AND STEP UP. IT IS MOSTLY AT THE EUROPEAN

ALLIES BUT THERE'S ALSO LITTLE

BIT OF A, A ASIA, ARE YOU LISTENING, MODE. DAVID:

WE HAVE TALKED ABOUT THE TIME AND EFFORT THAT WENT INTO

NEGOTIATING THE FIRST IRAN DEAL MANY YEARS AGO.

WE ARE TALKING ABOUT THE PROSPECTS OF A 60-DAY EXTENSION

OF THIS TENUOUS CEASE-FIRE THAT'S BEEN IN PLACE.

I'M CURIOUS HOW YOU SEE THAT PLAYING OUT.

SAY BOTH SIDES AGREE TO THIS. WHAT DOES IT MEAN FOR THE

PROSPECT OF THE STRAIT REMAINING OPEN?

I COULD ENVISION A FUTURE IN WHICH IRAN SAYS WE WILL DO THIS

AND THEN 60 DAYS LATER DECIDES, NO, WE WILL RENEGE ON THAT AND

THINGS WILL GO BACK TO THE WAY THEY ARE PRESENTLY.

HOW SUFFICIENT IS THE QUESTION I HAVE THAT 60 DAY EXTENSION?

WHAT DOES ALLOW BOTH PARTIES TO DO IN TERMS OF NEGOTIATING

GOING FORWARD? DANA: I THINK THIS IS TO GIVE TIME TO

DISCUSS THE NUCLEAR ISSUE. THIS IS THE THORNIEST ISSUE,

THE CRITICAL ONE FOR THE U.S. AND FOR PRESIDENT TRUMP.

HE SAYS THE JCPOA, THE DEAL THAT PRESIDENT OBAMA SECURED

WITH IRAN, IT WAS NOT A GOOD DEAL.

HE WANTS TO NEGOTIATE THIS. I THINK THE OBAMA DEAL TOOK

OVER A YEAR TO SECURE.

60 DAYS MIGHT NOT BE VERY SUFFICIENT TO NEGOTIATE WHAT TO

DO WITH THE NUCLEAR PROGRAM. THIS IS QUITE CRITICAL FOR

EVERYONE INVOLVED. WHEN IT COMES TO HORMUZ, WE

HAVE SEEN WHAT COUNTRIES LIKE THE UAE HAVE STARTED TO DO.

THEY HAVE ACCELERATED A SECOND PIPELINE TO EXPORT THEIR OIL

OUTSIDE OF HORMUZ. IF THAT PIPELINE GOES INTO

EFFECT, WHICH THEY SAY IT WILL START OPERATING IN 2027, THEY

WOULD NOT NEED HORMUZ TO EXPORT THEIR OIL.

YOU HAVE SEEN SAUDI ARABIA HAS THE EAST-WEST PIPE THAT GOES TO

THE RED SEA. THEY CAN EXPORT THROUGH THERE.

COUNTRIES ARE THINKING OF WAYS TO BYPASS HORMUZ.

EVEN IF IRAN HAS A TOLL SYSTEM, IT MIGHT NOT MAKE A LOT OF

MONEY OUT OF IT. THERE ARE COUNTRIES THAT COULD

HAVE IT MORE DIFFICULT LIKE KUWAIT OR IRAQ AND QATAR.

WITH THE UAE IS DOING WITH THAT SECOND PIPELINE SHOWS YOU A LOT

OF COUNTRIES ARE LOOKING FOR ALTERNATIVE WAYS.

THEY DON'T WANT TO USE HORMUZ EVENTUALLY.

LIKE YOU SAID, EVEN IF THE 60 DAYS EXPIRE WITH NO AGREEMENT,

WE ARE BACK TO SQUARE ONE, BACK TO THIS FROZEN WAR LIKE WE HAVE

SEEN WITH WHAT HAPPENED WITH THE KUWAITI -- THE U.S.

BASE IN KUWAIT. IT IS NOT JUST IRAN TARGETING

THE GULF COUNTRIES. IT IS THE IRAQI MALICIOUS.

THEY COULD BE BEHIND -- MILITIAS.

THEY COULD BE BEHIND THIS, AS HAS BEEN THE CASE BEFORE.

TWO WEEKS AGO, UAE BLAMED THEM FOR ATTACKING ITS OWN NUCLEAR

POWER PLANT IN ABU DHABI. IT'S ALL VERY FLUID AND THERE

IS NO CERTAIN SITUATION THAT AFTER THAT 60 DAYS, IF THEY

DON'T COME TO AN AGREEMENT ON THE NUCLEAR ISSUE OR COULD

RESUME. ISRAEL CAN BE SEEN AS A

WILDCARD HERE BECAUSE THE NUCLEAR PROGRAM IS SEEN AS AN

EXISTENTIAL THREAT TO THE ISRAELIS.

THEY MIGHT NOT LIKE A DEAL THAT THE U.S.

ORDER ONE COULD COME TO. THERE ARE SO MANY MOVING PARTS

HERE. 60 DAYS MIGHT NOT END THE WAR

AS WE SEE IT. CHRISTINA: THE PENTAGON SAID THEY ARE

READY TO RESTART IF NEEDED AT THE CALL OF THE PRESIDENT.

THERE IS REPORTING AROUND WHAT THIS CONFLICT HAS DONE FOR U.S.

MILITARY READINESS OVERALL. AS WE SEE THESE OFFICIALS AND

DIPLOMATS IN ASIA TALKING ABOUT ASIAN SECURITY AND THE DEFENSE

OF AMERICA'S ALLIES, THE TAIWAN AID PACKAGE IS STILL BEING HELD

BACK. PETE HEGSETH SAID WE SHOULD

UNCOUPLE THAT FROM THE TWO -- THE U.S.

HAS THE CAPACITY TO DO BOTH. THERE HAS BEEN A DEGRADATION OF

THE WEAPONS THE U.S. HAS USED IN THE MIDDLE EAST.

HOW DOES THAT IMPACT THE ADMINISTRATION'S SECURITY

PRIORITY GOALS IN THE WESTERN HEMISPHERE FOR THE PRESIDENT

SEEMS TO HAVE AN INTEREST IN EXPANDING THE U.S.

REACH AND ALSO ASIA WHERE THE UNITED STATES NEEDS TO COUNTER

CHINA WITH SOME OF ITS ALLIES? WENDY: ABSOLUTELY.

IT HAS A SPILLOVER EFFECT. THERE IS NOT AN INEXHAUSTIBLE

SUPPLY OF MISSILES. WE HAVE A LOT OF MISSILES BUT

NOT AN INEXHAUSTIBLE SUPPLY. WE HAVE BEEN USING THEM A LOT

IN THE LAST FOUR MONTHS OF THE IRAN WAR, DEPLETING OUR

STOCKPILES. THAT DOES LEAVE TAIWAN MORE

VULNERABLE. IF CHINA WERE TO CHOOSE TO

ATTACK TAIWAN AT THIS POINT, THERE ARE SOME EXPERTS WHO

WORRY ABOUT WHETHER THE U.S. WILL BE ABLE TO FIGURE ASLEEP

-- VIGOROUSLY DEFEND TAIWAN. WE HAVE SEEN REPORTS OF IT IN

THE LAST FEW DAYS OF HOW THE U.S.

WANTS TO HELP GUATEMALA WITH DRUG TRAFFICKING AND IT WANTS

TO HELP HONDURAS WITH DRUG TRAFFICKING IN THE HOPES THAT

MEXICO WILL THEN ASK FOR HELP WITH DRUG TRAFFICKING, WHICH

ALSO MEANS NOT TO TOMAHAWK MISSILES I WOULD HOPE BUT IT

DOES MEAN A LOT IF MUNITIONS AND A LOT OF MILITARY ACTIVITY,

KINETIC ACTIVITY AND A LOT OF DIFFERENT THEATERS AT ONCE.

THE U.S. MILITARY IS LARGELY CAPABLE BUT

THAT IS SPREADING THE COUNTRY THINNED A LITTLE BIT. DAVID:

I WANT TO ASK WHAT IS HAPPENING CURRENTLY IN THE STRAIT OF

HORMUZ. WE HEARD FROM THE CEO OF CHEVRON SAYING TO COMPANY IS

NOT INTERESTED IN PAYING TOLLS. BLOOMBERG IS REPORTING TWO SHIP

OWNERS WHO ASKED NOT TO BE IDENTIFIED SAID THEY WERE IN

COMMUNICATION WITH U.S. OFFICIALS THAT THEY ARE

PROVIDING ADVICE TO COMMERCIAL

SHIPS IN THE STRAIT TO HELP THEM NAVIGATE.

WHAT IS HAPPENING IN THE WATERWAY RIGHT NOW? DANA:

SHIP TRACKING DATA FROM OUR REPORTING IS SHOWING AT LEAST A

QUARTER OF THE NON-IRANIAN SHIPS STRANDED IN HORMUZ SINCE

THE WAR BEGAN BACK IN FEBRUARY HAVE MADE THEIR WAY OUT.

THIS IS SOME HOPE OR MAKING SOME SHIPOWNERS BECOME MORE

OPTIMISTIC THEY CAN PASS THROUGH HORMUZ.

THERE IS SOME PICK UP IN TRAFFIC.

WE HAVE SEEN TWO VESSELS LEAVING THE WHITE AFTER YOU'VE

THE U.S. PROVIDED INFORMATION ON THE

EXIT. SOME SHIPS HAVE BEEN TRANSITED

SINCE THE WAR STARTED AND WERE ENTERING AND LEAVING.

WE HAVE DATA THAT SHOWS SOME ARE COMING AND GOING.

THE UAE HAS SENT SHIPS THROUGH AS WELL.

QATAR IS QUIETLY EXPORTING LNG TO KEY BUYERS FROM OUR OWN

ORIGINAL REPORTING ABOUT TWO WEEKS AGO.

THERE IS SOME TRAFFIC HERE AND THERE AND IRAN ON A DAILY BASIS

IS SAYING 20 SHIPS HAVE CROSSED

THROUGH THE STRAIT. THERE IS SOME MOVEMENT BUT FOR

THE OIL MARKET I DOUBT THIS IS ENOUGH TO BOLSTER PRICES.

CHRISTINA: DANA KHRAICHE AND WENDY

BENJAMINSON, THANK YOU FOR JOINING US. DAVID:

CISCO'S FOCUS ON ARTIFICIAL INTELLIGENCE.

WE SAT DOWN WITH A CHIEF PRODUCT OFFICER.

THAT IS STRAIGHT AHEAD ON "BLOOMBERG THIS WEEKEND"

RIGHT HERE ON BLOOMBERG TELEVISION AND BLOOMBERG RADIO

AND BLOOMBERG.COM AND THE BLOOMBERG BUSINESS APP.

STAY WITH US. ♪

DAVID: WELCOME BACK. CISCO WAS ONE SEEN AS THE

COMPANY POWERING THE INTERNET. NOW I WANT TO POWER THE AI BOOM.

INVESTORS ARE BETTING THE NEXT PHASE OF A I WILL NOT JUST BE

ABOUT CHIPS, NETWORKS, SECURITY SYSTEMS AND INFRASTRUCTURE

CONNECTING THEM ALL. CHRISTINA: CISCO HAS EXPANDED, SAYING THE

FUTURE OF AI DEPENDS ON AI AGENTS OPERATING AT A COMPANY

LEVEL. LISA AND DAVID SPOKE WITH THE

PRESIDENT AND CHIEF PRODUCT OFFICER ABOUT WHAT PART

NETWORKING SYSTEMS WILL PLAY IN THE FUTURE DEVELOPMENT OF AI.

>> WE ARE ON THE VERGE OF A NETWORKING SUPER CYCLE.

YOU CAN SEE IT AND I RESULTS OVER THE PAST FEW YEARS.

THERE'S BEEN A TREMENDOUS ABOUT OF MOMENTUM.

THE REASON IS IF YOU TAKE A STEP BACK AND SAY WHAT IS

HAPPENING IN THE MARKET NOW, THERE ARE TWO MAJOR PHENOMENONS

OCCURRING. THE FIRST ONE IS WE ARE MOVING

FROM CHATBOTS TO AGENTS. THEY CAN CONDUCT TASKS AND JOBS

ALMOST AUTONOMOUSLY. THESE AGENTS TEND TO BE FAR

MORE CONSUMPTIVE IN THEIR PATTERNS OF USAGE ON NETWORK

BANDWIDTH COMPARED TO HUMANS.

WHILE A HUMAN MIGHT USE X AMOUNT OF NETWORK BANDWIDTH, AN

AGENT DOES 450% MORE TO CONDUCT THE SAME TASK.

YOU JUST NEED MORE NETWORK BANDWIDTH THAN WHAT YOU WOULD

HAVE OTHERWISE. THERE WILL BE TRILLIONS OF

AGENTS. THAT'S THE FIRST MAJOR SHIFT

HAPPENING. THE SECOND IS, WE ARE LIVING IN

A WORLD THAT IS POST MYTHOS, THE MODEL ANTHROPIC HAD BUILT

THAT CAN REALLY HELP WITH IDENTIFYING VULNERABILITIES AT

A MUCH FASTER PACE.

IN THAT WORLD, WHICH YOU WILL SEE IS PROTECTING

INFRASTRUCTURE AND HAVING SECURITY AND SAFETY BE

SOMETHING THAT'S ACTUALLY ORGANIZED AT MACHINE SCALE IS A

VERY IMPORTANT THING. THESE DYNAMICS.

THE THIRD IS PHYSICAL AI MAKES NETWORKING AT THE CENTER OF IT

ALL.

INFERENCING IS MUCH MORE, OR JUST AS MUCH MEMORY CONSTRAINT

AS IT IS COMPUTER CONSTRAINED. DAVID:

I WANT TO ASK ABOUT MYTHOS BUT I WOULD ASK ABOUT HOW CISCO IS

TRANSFORMING TO DEAL WITH THE DEMAND, THE SUPER CYCLE YOU ARE

TALKING ABOUT. I IMAGINE THAT MANIFEST IN ALL

THE DATA CENTER DEMAND ACROSS THIS COUNTRY AND AROUND THE

WORLD. HOW ARE YOU MEETING THE DEMAND

IS A COMPANY? JEETU: ONE THING WE HAVE BEEN VERY

FOCUSED ON IS MAKING SURE AS THE DEMAND EXPLODES, WE HAVE

GOTTEN OUR SUPPLY CHAIN IN ORDER.

WE ARE ONE OF THE FEW COMPANIES IN THE WORLD THAT ARE FULLY

VERTICALLY INTEGRATED PLATFORM. WE MAKE OUR OWN SILICON, OUR

OWN OPTICS WHICH IS WHAT COMMUNICATES THE DATA BETWEEN

CHIPS IN THE DATA CENTER OR ACROSS DATA CENTERS.

THAT MIGHT BE HUNDREDS OF KILOMETERS APART.

WE MAKE OUR OWN HARDWARE AND SYSTEMS AND OUR OWN OPERATING

SYSTEM AND SOFTWARE PLATFORMS AROUND SECURITY AND

OBSERVABILITY. YOU HAVE A FULL STACK.

ONE THING WE HAVE TO DO IS GET AHEAD AND MAKE SURE WE CAN

START FORECASTING. IF YOU LOOK AT THE LAST

QUARTER, OUR PRODUCT ORDERS ON THE BASE OF $63 BILLION GREW

35%. THERE IS A TREMENDOUS AMOUNT OF

MOMENTUM IN THE BUSINESS. WE HAVE SEEN THAT REFLECTED IN

OUR STOCK PRICE. I DON'T CHECK IT EVERY DAY BUT

IT'S IMPORTANT TO KNOW WHEN THERE IS THAT MUCH DEMAND

SIGNAL YOU HAVE TO MAKE SURE IT BECOMES A SUPPLY CONSTRAINED

WORLD AND YOU HAVE TO KEEP THE SUPPLY GOING, WHICH IS WHERE WE

ARE FOCUSED ON QUITE A BIT IN ADDITION TO THE TECHNOLOGY

INNOVATION WHICH IS MOVING FASTER THAN ANY COMPANY THE

SIZE BEFORE. LISA:

IT'S BEEN THIS MYTHOS, MYTHOS -- WE WILL FOLLOW YOUR LEAD.

JEETU: YOU CAN PRONOUNCE IT WHICHEVER

WAY YOU WANT. LISA: YOU ARE ONE OF THE COMPANIES

THAT GOT THEIR HANDS ON THIS. WHAT HAVE YOU LEARNED?

ARE YOU MORE WORRIED OR LESS CONCERNED? JEETU:

ONE OF THE THINGS THAT'S IMPORTANT IS AS AI BECOMES MORE

AND MORE PROMINENT -- MYTHOS IS A CATALYTIC EVENT.

IF YOU LOOK IN GENERAL WHAT WE HAVE HAD OVER THE PAST 30 YEARS

IS THIS NOTION WHERE THE ADVERSARY, THE BAD FOLKS ALWAYS

HAVE AN ADVANTAGE OVER THE DEFENDERS, THE GOOD FOLKS.

THE REASON IS BECAUSE THE ADVERSARY HAS TO BE RIGHT ONCE.

THE DEFENDER HAS TO BE RIGHT EVERY TIME.

THIS IS THE FIRST TIME YOU MIGHT ACTUALLY SEE THAT IF WE

CAN COORDINATE OURSELVES AND COMPANIES CAN COORDINATE

THEMSELVES TO SAY I'M GOING TO MAKE SURE MY DEFENSES ARE

MACHINE SCALED RATHER THAN HUMANSCALE AND WE CAN HAVE A

TIME ADVANTAGE, BECAUSE MYTHOS WAS MADE AVAILABLE TO COMPANIES

LIKE US BEFORE IT WAS MADE AVAILABLE TO THE WORLD AT

LARGE, WHICH IS WHERE THE BAD FOLKS GET A HAND ON IT, YOU CAN

START TO SEEK AN ASYMMETRIC MOVE WHERE THE DEFENDERS MIGHT

HAVE AN ADVANTAGE OVER TIME. DAVID:

A BIG QUESTION IS WHAT AI WILL DO TO THE LABOR FORCE.

I SAW PLANS THAT HAVE SOME LAYOFF SOON.

IS THAT TIED INTO THE AI STORY? HOW DO YOU THINK ABOUT THE WAY

AI IS DISLOCATING THE WORKFORCE AND HOW IT MIGHT GOING FORWARD?

JEETU: THE RESTRUCTURING HAD NOTHING

TO DO WITH COST EFFICIENCY. IT WAS AROUND REALLOCATION OF

DOLLARS. WE WANTED TO MAKE SURE WE PUT

DOLLARS AND HIGHER GROWTH AREAS. WE WILL SEE AN INCREASE, NOT A

DECREASE YEAR OVER WE MOVE FORWARD. WE ARE INVESTING IN THE

BUSINESS, NOT TAKING AWAY. AS YOU THINK ABOUT THE JOB

SITUATION AND WHAT PEOPLE HAVE TALKED ABOUT, THE COMMON

CONCERNS IS AI WILL TAKE OUR JOBS.

WE WILL BE STARING AT THE OCEAN AND AI WILL DO EVERYTHING FOR

US. WHAT WE FOUND IS THE OPPOSITE.

WE ARE ONE OF THE LARGEST USERS OF A CODING PERSPECTIVE.

WE HAVE 30,000 ENGINEERS.

THEY ALL USE CODECS FROM OPENAI

TO WRITE CODE AND CLOUD CODE -- CLAUDE CODE.

WE HAVE HALF A DOZEN PRODUCTS BY THE END OF THE YEAR THAT ARE

100% WRITTEN BY AI. NEXT YEAR, 70% OF ALL THE CODE

WILL BE WRITTEN BY AI. THE THINGS WE ARE FINDING THAT

IS SURPRISING AND COUNTERINTUITIVE IS WITH ALL

THE CODE WRITTEN WITH AI WE ARE SEEING MANY MORE HUMAN

BOTTLENECKS THAN NOT. I ACTUALLY THINK MAYBE THIS IS

CONTRARY AND BUT YOU WILL SEE AN INCREASE IN JOBS RATHER THAN

A DECREASE IN JOBS BECAUSE OF AI.

WHAT YOU WILL SEE IS A LOT OF RECONFIGURATION OF HOW JOBS ARE

ACTUALLY BEING DONE.

THAT IS SOMETHING -- THE DELTA BETWEEN SOME AI FLUID AND NOT A

EFFLUENT IS NOT GOING TO BE A 20% GAP OF PRODUCTIVITY.

IT WILL BE 50X. PEOPLE WHO KNOW AI WILL BE IN

EXCEPTIONALLY HIGH DEMAND. THAT WILL PERSIST. I DON'T

THINK THAT CHANGES. LISA: CISCO USED TO GET PAINTED WITH

THE SAME BRUSH AS MEMORY. CYCLICAL. SLOW AND LOW.

WHAT WOULD YOU SAY NOW? IT SEEMS LIKE THAT IS NOT THE

CASE. IS THIS A NEW ERA FOR CISCO. ?

JEETU: WHEN I TOOK OVER THE JOB TWO

YEARS AGO I SAID IN A YEAR YOU WILL SEE CISCO LOOK DIFFERENT

IN TWO YEARS WE WILL BE UNRECOGNIZABLE.

IT HELPS TO HAVE $270 BILLION ADDED TO THE MARKET CAP BUT

FUNDAMENTALLY THE WAY IN WHICH WE ARE OPERATING IN THE WAY IN

WHICH WE ARE INNOVATING, WE LIKE TO THINK OF OURSELVES AS

ONE OF THE WORLD'S LARGEST STARTUPS. IT'S TRULY THE CASE.

WHAT YOU ARE SEEING IS NOT JUST CYCLICALITY.

IT IS A SECULAR SHIFT. WHEN THAT SHIFT HAPPENS, YOU

HAVE A PLATFORM SHIFT OF AI BEING SOMETHING WHICH IS NOT

JUST A TECHNOLOGY ADDED, THESE ARE DIGITAL COWORKERS HAVE

BECOME ADDITIONAL TEAMMATES ON OUR TEAMS WHICH INCREASE

CAPACITY. IT BECOMES A VERY DIFFERENT

KIND OF DYNAMIC. ALL THE ASSUMPTIONS YOU HAVE

AROUND THE INFRASTRUCTURE ARE NOT TEMPORARILY CHANGED.

THEY ARE PERMANENTLY CHANGED. THAT WILL CREATE A SUPER CYCLE

IN OUR MIND. IT'S ALREADY CREATING AN

INFRASTRUCTURE SUPER CYCLE. DAVID:

WE ARE TALKING ON THE PEOPLE OF CISCO LIVE IN LAS VEGAS, A BIG

EVENT FOR YOU AND THE COMPANY. CAN YOU GIVE US ANY SNEAK PEEK

OF WHAT YOU PLAN TO DEBUT THEIR? -- DEBUT THERE?

JEETU: I WAS TOLD I NEED TO GIVE YOU

SOME SORT OF EXPLICIT -- I CAN'T DO THAT.

WE HAVE 25,000 OF OUR CLOSEST CUSTOMERS THAT TEND TO COME AND

ASSEMBLE IN VEGAS. WE TRY TO DO IT ONCE A YEAR.

WHAT ARE THE NEW INNOVATIONS WE ARE COMING UP WITH.

IT IS FOR OUR MOST LOYAL

CUSTOMERS AND THE ONES WHO ARE REALLY FOCUSED ON RUNNING THEIR

BUSINESSES ON US. AS YOU HAVE SEEN THIS SUPER

CYCLE FOR INFRASTRUCTURE, THE WAY IN WHICH ORGANIZATIONS

MANAGE INFRASTRUCTURE HAS NOT KEPT UP.

IT'S VERY COMPLEX TO MANAGE INFRASTRUCTURE.

YOU SHOULD EXPECT TO SEE A FUNDAMENTALLY DIFFERENT WAY

WITH AI AGENTS THAT INFRASTRUCTURE GETS MEN IS FOR

ORGANIZATIONS AND DRAMATICALLY SIMPLIFIES THAT.

THE EXCLUSIVE I WILL GIVE YOU IS WE WILL HAVE A WHOLE NEW ERA

OF SWITCHES AND ROUTERS AND FIREWALLS AND WI-FI ACCESS

POINTS FOR UPDATING THE INFRASTRUCTURE.

UP UNTIL NOW WHAT WAS HAPPENING WAS THAT CONSTRAINTS WERE

LARGELY IN THE DATA CENTER WHERE YOU NEEDED TO DO THINGS.

NOW WITH INFERENCING IT IS NO LONGER JUST CONSTRAINED TO THE

DATA CENTER. DATA CENTERS AND HYPERSCALERS

ARE MOVING AT A FAST PACE. WE ARE GROWING TRIPLE DIGITS ON

THAT SIDE OF THE HOUSE. EVEN PEOPLE SITTING AT THEIR

DESKS THAT HAVE A LAPTOP WILL HAVE A MAC MINI AND 108 IS

DOING WORK. -- 100 AGENTS DOING WORK.

YOU WILL HAVE TRILLIONS OF AGENTS AND THEY WILL CREATE SO

MUCH MORE TRAFFIC AND IT WILL REQUIRE SO MUCH MORE SECURITY

AND INSPECTION THAT WE FEEL LIKE THE ENTIRE NETWORKING

APPARATUS HAS TO BE UPGRADED AND THAT IS WHAT WE ARE

ANNOUNCING. DON'T TELL ME I DID NOT GIVE

YOU THE EXCLUSIVE BUT THAT IS SOMETHING THAT'S ONLY FOR

BLOOMBERG. DAVID: WE WILL TAKE IT.

CHRISTINA: SEE WHAT HAPPENS WHEN I'M NOT

HERE? I DID NOT THINK HE WAS GOING TO

GIVE IT TO YOU FOR A MINUTE. THAT'S A LOT OF TEASE. DAVID:

THESE COMPANIES ARE CHANGING THEIR ATTACK TO EMBRACE IT AI

. HARDWARE AND AI HAVING A BIT OF

A MOMENT WITH ROUTERS LISA: LISA: AND SWITCHES. CHRISTINA:

THEY HAVE A HUGE PARTY. MARIN 5 PERFORMING -- MAROON 5

PERFORMING. DAVID: LISA, THANK YOU. LISA:

LET'S GET TO THE TOP STORIES. WITH NO UPDATE ON A CEASEFIRE,

PETE HEGSETH SPOKE ABOUT THE CONFLICT OUTSIDE A SINGLE

DEFENSE CONFERENCE IN SINGAPORE -- SHANGRI-LA DEFENSE