Trump calls for Powell to resign after the Fed renovation report

Trump: Won’t Do Diesel Export Ban. >> THIS IS "BALANCE OF POWER," LIVE FROM WASHINGTON, D.C. KAILEY: TONIGHT, CASE STILL CLOSED. TODD BLANCHE SAYS IN AN EXCLUSIVE INTERVIEW THE JUSTICE DEPARTMENT WILL NOT REOPEN AN INVESTIGATION INTO JEROME POWELL. PLUS, COOLING GROWTH. THE SEPTEMBER JOBS REPORT SHOWED THE U.S. ADDED FEWER JOBS THAN EXPECTED, EASING PRESSURE ON THE FED TO RAISE RATES AGAIN WITH POLICY MAKERS MEETING LATER THIS MONTH. WE WILL TALK ABOUT THE ECONOMY WITH THE MANAGING PARTNER AND FOUNDER OF INTERNATIONAL CAPITAL STRATEGIES. ON THE TRAIL, PRESIDENT TRUMP WILL BE IN MOBILE, ALABAMA, TONIGHT FOR HIS LATEST CAMPAIGN STOP BEFORE HEADING TO THE DAYTON AREA IN OHIO TOMORROW, PART OF HIS INCREASINGLY AGGRESSIVE MIDTERM CAMPAIGNS SWING. FROM BLOOMBERG'S WASHINGTON, D.C., STUDIOS TO TV AND RADIO AUDIENCES WORLDWIDE, WELCOME TO "BALANCE OF POWER." JOE: WE BEGIN WITH AN EXCLUSIVE REPORT FROM BLOOMBERG. ATTORNEY GENERAL TODD BLANCHE TELLING BLOOMBERG TV AND RADIO THAT WHILE HE BELIEVES FORMER FED CHAIR JAY POWELL DID NOT ACT APPROPRIATELY WITH THE RENOVATIONS AT THE FED'S WASHINGTON HEADQUARTERS, THE DOJ IS SATISFIED WITH THE INSPECTOR GENERAL REPORT AND WILL NOT REOPEN A CRIMINAL PROBE INTO POWELL. >> I THINK IT IS PRETTY CLEAR HE DID NOT ACT APPROPRIATELY AS FAR AS OVERSIGHT, AND THAT IS WHAT THE INSPECTOR GENERAL CONCLUDED. MAKING MISTAKES AND NOT HAVING ANY SORT OF OVERSIGHT OVER THE FOLKS DOING BILLION-DOLLAR PROJECTS IS NOT NECESSARILY A CRIME. WE CLOSED THAT INVESTIGATION, AS YOU KNOW, AND WE ARE NOT REOPENING A CRIMINAL INVESTIGATION INTO HIM. JOE: A SIGNIFICANT DEVELOPMENT IN THE OUTLOOK FOR FED INDEPENDENCE. YOU CAN CATCH MORE OF BLOOMBERG'S CONVERSATION AND THE FULL INTERVIEW WITH TODD BLANCHE ON BLOOMBERG THIS WEEKEND ON SUNDAY. FURTHERMORE, WE BRING IN KATE SULLIVAN, WHO IS LIVE AT THE WHITE HOUSE. IS IT CASE CLOSED? KATE: IT'S INTERESTING BECAUSE ALSO IN THAT INTERVIEW, IT IS IMPORTANT TO NOTE THAT TODD BLANCHE DID NOT RULE OUT CONTINUING TO LOOK INTO THIS RENOVATION PROJECT AND ESSENTIALLY TAKING ACTION DOWN THE ROAD. IT'S A SIGNIFICANT DEVELOPMENT THAT BLANCHE IS SAYING IN THIS BLOOMBERG INTERVIEW THAT THEY ARE NOT GOING TO REOPEN THIS CRIMINAL INVESTIGATION INTO FORMER FED CHAIR JEROME POWELL, ESPECIALLY OVER THIS RENOVATION PROJECT AT THE CENTRAL BANK HEADQUARTERS. TRUMP HAS BEEN VERY VOCAL ABOUT THE ISSUE. AFTER THE INSPECTOR GENERAL REPORT CAME OUT THIS WEEK THAT FOUND NO CRIMINAL WRONGDOING, THE PRESIDENT TOOK TO SOCIAL MEDIA AND SAID HE THOUGHT THERE WAS CORRUPTION AND SAID THAT POWELL SHOULD RESIGN IMMEDIATELY. HE ALSO SAID HE SHOULD BE SUED BY THE FEDERAL GOVERNMENT AT THE HIGHEST LEVEL. AGAIN, THE REPORT FOUND NO EVIDENCE OF CRIMINAL WRONGDOING, BUT WHEN JEROME POWELL WAS FED CHAIR, THERE WAS A LOT OF PRESSURE FROM THE PRESIDENT TO LOWER INTEREST RATES. HE REPEATEDLY ATTACKED HIM AND INSULTED HIM. THIS WAS A LONG-STANDING ISSUE, AND WHEN POWELL DID NOT BEEN TO THAT PRESSURE, HE REPEATEDLY CALLED FOR HIM TO RESIGN. KAILEY: THE PRESIDENT HAS MADE A LOT OF REPEATED CLAIMS, INCLUDING SAYING PUBLICLY HE WAS CONSIDERING A DIESEL EXPORT BAN TO COMBAT HIGHER PRICES, AND YET TODAY, HE TOLD REPORTERS THAT WAS NEVER ACTUALLY GOING TO HAPPEN AND CERTAINLY WILL NOT HAPPEN NOW THAT EUROPE HAS AGREED TO RELEASE MORE DIESEL RESERVES. KATE: IT WAS REALLY INTERESTING, A STUNNING ADMISSION BY THE PRESIDENT. WHEN HE WAS TALKING TO REPORTERS AT THE WHITE HOUSE BEFORE HEADING OVER TO ALABAMA FOR A MIDTERM RALLY, HE SAID HE WAS NEVER GOING TO ENACT THIS DIESEL EXPORT BAN AFTER HE PUBLICLY WAS SAYING HE WAS CONSIDERING DOING SO. THERE REPORTEDLY WERE DIFFERENT OPINIONS IN THE ADMINISTRATION, SPLITS IN THE ADMINISTRATION ABOUT IF THIS WAS A GOOD IDEA, AND FUEL PRODUCERS WERE SAYING ANY SHORT-TERM BENEFIT THAT WOULD BE BROUGHT FROM THIS WOULD BE FAR OUTWEIGHED BY HIGHER FUEL PRICES IN THE LONG TERM. THIS IS AS THE WHITE HOUSE IS UNDER A LOT OF PRESSURE TO BRING DOWN DIESEL PRICES, WHICH HAVE SKYROCKETED AMID THE WAR WITH IRAN. KAILEY: THANK YOU SO MUCH. JOINING US NOW FOR MORE IS THE MANAGING PARTNER AND FOUNDER OF INTERNATIONAL CAPITAL STRATEGIES AND A NONRESIDENT SENIOR FELLOW AT THE BROOKINGS INSTITUTION. HE'S WITH US IN OUR WASHINGTON, D.C., STUDIO. IT IS GOOD TO HAVE YOU BACK. WE HAVE A LOT WE WANT TO DISCUSS WITH YOU, INCLUDING DIESEL AND HOW IT FILTERS THROUGH THE WIDER ECONOMY, BUT IF WE COULD BEGIN WITH THIS NEWS ON POWELL, NO CRIMINAL INVESTIGATION BEING REOPENED. HOW INFLUENTIAL DO YOU SUSPECT HE IS AS A FORMER FED CHAIRMAN WHO REMAINS ON THE BOARD RIGHT NOW AND DETERMINING THE TRAJECTORY OF MONETARY POLICY? HOW MUCH DOES HE STILL MATTER? DOUG: IT IS ALMOST AS IF YOU HAVE THIS PRESENCE IN THE ROOM, THAT JAY POWELL DOES NOT NEED TO SAY ANYTHING, BUT BY BEING THERE, IT MEANS CHAIR WARSH AND OTHERS ARE AWARE OF HIS PRESENCE. IF CHAIR WARSH WANTS TO GO AFTER HIS PET ASSESSOR AND GO AFTER THE MEMBERS OF THE BOARD THAT DEFER TO HIS PREDECESSOR, JAY POWELL IS SITTING RIGHT THERE. IT IS A LOT EASIER WHEN HE IS NOT IN THE ROOM TO PICK A FIGHT, SO I DON'T THINK JAY POWELL HAS TO DO VERY MUCH. HE DOES NOT HAVE TO POUND THE TABLES, NOT HIS STYLE ANYWAY, BUT I THINK HIS PRESENCE ON THE BOARD IN THE FOMC MEETINGS IS A TEMPERING INFLUENCE ON WHAT KEVIN WARSH MIGHT BE INCLINED TO DO. I'M NOT SAYING THERE'S BAD BLOOD, PER SE, BUT I JUST THINK HAVING THE FORMER CHAIR SITTING THERE IS AN INHERENT CHECK ON GOING TOO FAR AGAINST YOUR PREDECESSOR. JOE: KEVIN HASSETT COMPARED THIS TO A CEO LEAVING THE COMPANY OR A NEW CEO COMING IN AND THE OLD ONE STILL SITTING THERE. THIS IS KIND OF LIKE IGER AND CAPEK AT THE FED. HOW LONG CAN THAT ENDURE? DOUG: IT'S INTERESTING BECAUSE I HAVE NOT SEEN EXACTLY WHAT TODD BLANCHE SAID TODAY WORD FOR WORD, BUT I COULD SEE JAY POWELL LOOKING FOR A MEANS BY WHICH TO SLIDE OFF THE BOARD NEXT YEAR NOW THE IG REPORT HAS COME OUT, ETC., BUT I COULD ALSO SEE A SCENARIO IN WHICH HE FEELS MORE COMFORTABLE MAINTAINING THAT "I'M IN THE ROOM." IT'S NOT A HEAVY LIFT. KEEPING THE INSTITUTION ON THE GROUND IS A PUBLIC SERVICE. I DON'T THINK HIS INITIAL INTENTION WAS TO STAY UNTIL THE END OF HIS TERM IN 2028. IT'S JUST EVENTS MAY BE SUCH THAT HE DECIDES TO STICK AROUND. KAILEY: FOR HOWEVER LONG HE IS THERE, HE WILL HAVE TO CONSIDER ECONOMIC DATA, WHICH WE GOT MORE OF TODAY. THE JOBS REPORT SOFTER THAN EXPECTED. 29,000. WE GOT COOLER INFLATION DATA THIS WEEK TELLING YOU ABOUT THE U.S. ECONOMY RIGHT NOW, AND ITS RELATIVE STRENGTH AS THE PRESIDENT CONTINUES TO PUSH THINGS LIKE A TRADE WAR WITH CANADA AND A HOT WAR IN THE MIDDLE EAST. DOUG: IT IS FIRST OF ALL TELLING YOU THAT REVISIONS ARE THE NAME OF THE GAME. KAILEY: DOWNWARD IN THIS CASE. DOUG: YOU'RE SEEING PARTICIPATION DOWN. YOU ARE SEEING DATA ALL OVER THE PLACE. I THINK IT IS INEVITABLE MARKETS WILL TRADE AND REACT TO THE IMMEDIATE RELEASE OF THE DATA, BUT WE HAVE TO ACKNOWLEDGE WHAT IS GOING ON IN THE REAL ECONOMY AND WHAT'S COMING OUT OF AN INDIVIDUAL PRESS RELEASE OR PRINT IS SUBJECT TO REVISIONS THAT SHOULD BE IN BIG, BOLD, RED LETTERS AT THE TOP. IF PEOPLE REACT TO IT IN TIME IS THE QUESTION. I THINK IT SAYS THE ECONOMY IS MOVING ALONG. WE KNOW THAT. WE KNOW THERE'S A LOT OF MONEY CHURNING THROUGH ON THE SPENDING SIDE, ON THE DEMAND SIDE, THE INVESTMENT SIDE, THE BORROWING SIDE. THERE IS A LOT GOING ON. IF THIS IS SUSTAINABLE IS A QUESTION NONE OF US KNOW BECAUSE SO MUCH OF IT IS AI-DRIVEN. AI REMAINS THIS BEHEMOTH IN THE ECONOMY RIGHT NOW, PARTICULARLY THE U.S. ECONOMY, THAT IS UNPRECEDENTED IN ITS IMPACT. SUPPLY, DEMAND-SIDE, EQUITY MARKETS, IPO SIDE. EVEN THE U.S. GOVERNMENT IS BEING CROWDED OUT OF THE DEBT MARKETS. THE DYNAMIC IS SOMETHING WE HAVE NEVER SEEN. IN THE REAL ECONOMY, I THINK IT IS FAIR TO SAY EVERYBODY IS COMFORTABLE WITH THE STATUS QUO. YOU SAW EFFECTIVELY A FLAT JOB MARKET. WAGE PRESSURES NOT BEING SEEN. EVERYBODY IS LIKE, "I'M UNCOMFORTABLE MAKING A COMMITMENT LONGER-TERM." THEREFORE, STEADY AS SHE GOES, AND STEADY AS SHE GOES RIGHT NOW IN THE U.S. MEANS WINGS ARE DOING OK. JOE: DO YOU HIKE RATES BEFORE THE ELECTION? DOUG: THAT'S A DIFFERENT QUESTION. I HAVE BEEN RELUCTANT TO THINK THE FED WAS GOING TO HIKE BECAUSE OF THE PROXIMITY TO THE ELECTION, BUT I WAS NOT HIGH CONFIDENCE ON THAT. I'M STILL NOT. EVERYTHING THESE DAYS IN WASHINGTON IS POLITICAL. THE FED AND THE SUPREME COURT, THINGS THAT USED TO BE APOLITICAL -- JOE: HAS WARSH DONE ENOUGH TO FOSTER CREDIBILITY? DOUG: IT IS EARLY DAYS FOR WARSH, BUT WHAT HAPPENED TODAY GAVE A GOOD EXCUSE TO TAKE THE POLITICS OUT OF IT, FOR THE FED TO NOT MOVE, EVEN IF BEHIND-THE-SCENES, THERE IS AN ELEMENT -- SMALL, MEDIUM, OR LARGE -- ABOUT THE FACT THAT THE MIDTERMS ARE 10 DAYS LATER, AND THAT'S REALLY NOT A GOOD LOOK, SOME PEOPLE WOULD SAY. THIS GIVES AN EXCUSE TO MAKE IT APPEAR THAT IT'S NOT POLITICALLY MOTIVATED, BUT AGAIN, I'M NOT HIGH CONFIDENCE ON THIS YET. KAILEY: LET'S TALK ABOUT SOMETHING ELSE INFLUENCING MIDTERMS AND THE PRESIDENT'S POLICY, AND THAT'S THE PRICE OF GAS AND DIESEL. THE PRESIDENT TOYING WITH AN EXPORT BAN, AND NOW HE SAYS HE WILL NOT GO FORWARD WITH THAT BECAUSE THE G7 COUNTRIES HAVE GOTTEN TOGETHER AND AGREED TO RELEASE MORE OIL RESERVES. DOUG: THERE'S A DIFFERENCE BETWEEN WHAT THE MARKET IS READING AND INTERPRETING AND REACTING TO AND THE CUES. WHAT WE HAVE SEEN THIS WHOLE YEAR SINCE THE IRAN WAR WAS COMMENCED WAS THAT WE HAD THIS HORMUZ-INSPIRED GAS/PETROL PRICES, IS MOLECULES ARE SEPARATE FROM HOW PEOPLE ARE REACTING TO IT. WE SAW AN ANNOUNCEMENT TODAY. IT IS STILL VERY AMBIGUOUS. IS IT JUST DIESEL? IS IT DIESEL AND CRUDE? HOW MUCH OF IT IS MAKING UP FOR WHAT WAS COMMITTED TO THIS YEAR AND ACCELERATING THAT, OR IS IT NEW? WE DON'T KNOW. WHAT WE KNOW AS THE MARKET SAW A NUMBER, INTERVENTION, AND REACTED. WILL THAT BE SUSTAINED NEXT WEEK WHEN THE DETAILS COME OUT? I DON'T KNOW. WHAT I CAN TELL IS THERE WERE A LOT OF COMMITMENTS MADE EARLIER THIS YEAR HAVE YET TO BE FULLY FULFILLED. IN SOME CASES, THEY ARE WAY BEHIND. IF THIS MEANS, OK, WE CAN FINALLY DO WHAT WE SAID WE WOULD FOUR MONTHS AGO, IT IS NOT ADDING ANY RESUPPLY TO THE MARKET. WHEN YOU ARE RELEASING STOCKPILES FROM STRATEGIC PORTFOLIO RESERVES, YOU ARE NOT ADDING SUPPLIER TO THE GLOBAL MARKET BROADLY LONG-TERM. YOU ARE JUST TAKING IT OUT OF STORAGE AND SAYING YOU WILL HAVE TO REPLACE IT LATER. IS THIS A SHORT-TERM FIX? AT BEST, IT IS A SHORT-TERM FIX. AT WORST, IT IS JUST PLAYING WITH AND ACCELERATING SOMETHING THAT WAS ALREADY COMMITTED AND HOPING PEOPLE DO NOT LOOK TOO CLOSELY BEHIND THE SCENES. JOE: WHO SPENT A CAREER AT THE CENTER OF BUSINESS AND POLITICS, SO I'M COMING OUT OF LEFT FIELD ON THIS, BUT I HAVE TO ASK BECAUSE YOU ARE SITTING HERE NOW -- WHEN WE LOOK BACK AT ALL THESE AI EXECUTIVES AT THE WHITE HOUSE WITH PRESIDENT TRUMP, EITHER THE LAST SUPPER PHOTO OR THE GAGGLE THAT TOOK PLACE IN THE DRIVEWAY, REMARKABLE IMAGES THIS WEEK. HOW SIGNIFICANT WAS THIS GATHERING THIS WEEK IN WASHINGTON? DOUG: I THINK IF YOU LOOK AT THE CONSEQUENCES OF THAT, THE PHOTO OP -- JOE: WILL IT BE GOOD FOR THE INDUSTRY? DOUG: IT WAS INDUSTRY MAKING NICE WITH THE PRESIDENT AND VICE VERSA. THE DOCUMENT THAT WAS SIGNED, I THINK THE DOCUMENT WILL GO DOWN AS -- I WAS GOING TO SAY FARCE. I DON'T WANT TO SAY FARCE. I WILL SAY SMALL STEP WITH VERY LITTLE LONG-TERM TRACTION BEHIND IT. IT IS AN ATTEMPT TO CREATE THE ILLUSION OF "DON'T WORRY, WE GOT THIS UNDER CONTROL. WE ARE COLLECTIVELY AGREEING, GOVERNMENT, INDUSTRY, JENSEN HUANG, MARK ZUCKERBERG. DON'T WORRY, WE ARE ALL IN THE SAME BOAT." I DON'T THINK THAT IS A SUSTAINABLE MESSAGE. I THINK THIS WAS A WAY TO PUT EVERYBODY AT THE TABLE, EVERYBODY IN A PHOTO OP, EVERYBODY'S SIGNATURE ON THE PAGE. WILL THIS BE REMEMBERED? NO. I THINK THE STORY OF THE DAY, THE MONTH, THE YEAR IS BOND MARKETS NOW ARE SUBJECT TO THE INFLUENCE OF BOND VIGILANTES. U.S., FRANCE IN PARTICULAR, AND I THINK PEOPLE ARE MISSING IT IF THEY DON'T PUT THAT HIGH ON THE LIST OF THINGS TO TALK ABOUT. JOE: WHEN IS THE 10 GOING TO 6%? DOUG: I THINK THAT DEPENDS ON THE DATA, BUT I'M NOT RULING ANYTHING OUT. JOKE: I KNOW WE WERE TOTALLY UNFAIR TO YOU, WALL STREET FINISHED THE WEEK MIRING TODAY EVEN AFTER TREASURY YIELDS REVERSED EARLY LOSSES. LET’S TURN TO POWER MOVES WITH BLOOMBERG’S NORAH MULINDA IN NEW YORK. NORAH: GOOD EVENING. LOOK AT THE BOND MARKET. BONDS INITIALLY RALLYING BUT ULTIMATELY FADING WITH YIELDS HIGHER. 10-YEAR STILL SITTING ABOVE THAT 5% LEVEL WE’VE BEEN MONITORING BUT THE STOCKS DID LIKE THE REPORT. LOOK AT THE NASDAQ 100, HITTING A RECORD HIGH TODAY. HIGHER BY 1%. THE S&P 500, HIGHER BY ABOUT .7% BUT STILL LOWER FOR THE WEEK AND THIS HAS BEEN AN INTERESTING WEEK. A LOT CAN HAPPEN AND CHANGE IN A WEEK. JUST ON MONDAY WE WERE SEEING A LOT OF TRADERS PRICING IN THE POTENTIAL FOR 70% CHANCE OF A HIKE OUT OF THE FED FOR THE OCTOBER MEETING. NOW WE’RE SEEING THAT COMING BACK AND POTENTIALLY SEEING RATES UNCHANGED FOR OCTOBER SO THAT’S FILTERING IN SOME OF THE OPTIMISM FOR A SLIGHTLY RISK ON RALLY IN THE EQUITY MARKET. A FEW OF THE NAMES THAT REALLY DROVE THE MARKET TODAY. NVIDIA, THE BIGGEST POINT GAINER TOWARD THE S&P 500 TODAY AND SPEAKING OF THE RECORDS WE WERE JUST DISCUSSING. NVIDIA POTENTIALLY FLIRTING WITH THE RECORD DATING BACK TO MAY. ENDING HIGHER BY ABOUT 1.3% ON THE DAY AND FLIRTING WITH THAT $6 TRILLION MARK. SO THAT’S A KEY LIVE WE’LL HAVE TO WATCH AN EYE ON. TESLA IS ANOTHER ONE WE’RE MONITORING IN THE MARKET. WHEN YOU THINK ABOUT A COMPANY THAT HAS BEEN STRUGGLING FOR TWO CONSECUTIVE YEARS OF BACK-TO-BACK YEARS OF SALES DECLINES, THIS IS SOME OPTIMISTIC, GREAT NEWS FOR A COMPANY THAT A LOT OF PEOPLE HAVE BEEN KEEPING THEIR EYES ON. JOE: NORAH, THANK YOU SO MUCH. COMING UP, PRESIDENT TRUMP EXPECTED TO NAME THE FIRST EVER WHITE HOUSE AI CZAR AS THE ADMINISTRATION GOES ALL IN TO SHAPE THE NATION’S FUTURE WITH THIS TECHNOLOGY. DEMOCRATIC CONGRESSMAN DOUG LANCEMAN AMONG THOSE PUSHING FOR GREATER GOVERNMENT OVERSIGHT AND HE’LL JOIN US NEXT. >> I EXPECT IT’S THE SAME OR AT LEAST IT RESONATES IN THE INTELLIGENCE COMMUNITY THAT A S NOT ONLY AN OPPORTUNITY BUT A THREAT. WHEN SOMETHING IS BOTH AN OPPORTUNITY AND A THREAT YOU BETTER GET YOUR ARMS AROUND IT. AI IS GOING TO GREATLY AMPLIFY THAT COLLECTION ABILITY, WHICH AMPLIFIES THE NEED FOR OVERSIGHT ASK CONTROLS TO PROTECT OUR CITIZENS -- I THINK WE SHOULD JUST RECOGNIZE THAT THAT’S THE CASE. JOE: IT’S BLOOMBERG TV AND RADIO, "BALANCE OF POWER," ALONGSIDE KAILEY LEINZ, I’M JOE MATHIEU. THAT WAS THEN DIRECTOR OF NATIONAL INTELLIGENCE NOMINEE JAY CLAYTON SPEAKING BEFORE THE SENATE IN JULY JUST DAYS BEFORE BEING CONFIRMED FOR THAT ROLE. CLAYTON HAS BEEN WIDELY REPORTED TO SOON BE NAMED THE PRESIDENT’S FIRST EVER AI CZAR. THE NEWS COMING JUST DAYS AFTER THE PRESIDENT MET WITH LEADERS OF SOME OF THE WORLD’S LARGEST TEX COMPANIES, CALLING ON THEM TO POLICE THEMSELVES. MEANWHILE, AI GUARDRAILS IS THE FOCUS WITH A NEW BIPARTISAN PUSH SURROUNDING DATA CENTERS. CONGRESSMAN GREG LANDSMAN IS BEHIND A BILL AS COMMUNITIES FACE A LOT OF QUESTIONS ON THEIR IMPACT ON WATER, ELECTRICITY AND BEYOND. IF THE PRESIDENT DOES, CONGRESSMAN, NAME AN AI CZAR, WILL THAT HANDLE THE PROBLEM? >> NO. [LAUGHTER] WHAT THE AMERICAN PEOPLE NEED ARE PROTECTIONS. REAL PROTECTIONS AND SO ON DATA CENTERS, THESE DEALS HAVE TO BE PUBLIC, WHICH MEANS WE HAVE TO BAN N.D.A.’S, THESE NONDISCLOSURE AGREEMENTS THAT BIG TECH HAS SIGNED WE ELECTED OFFICIALS ALL OVER THE COUNTRY. AS A RESULT PEOPLE HAVE NO IDEA WHAT’S HAPPENING. IT’S FRUSTRATING AND ULTIMATELY COSTS THEM MORE SO THEY’RE ANGRY. THEY WANT ALL THE DEALS TO BE PUBLIC. THEY WANT TO ENSURE THAT THERE ARE FEDERAL PROTECTIONS REQUIREMENTS THAT THESE DATA CENTERS PAY FOR EVERYTHING, THAT AS INDIVIDUALS, THEY DON’T HAVE TO PAY ANYTHING MORE AND THAT THEY KNOW WHAT’S GOING ON WITH THEIR WATER. ON AI, THEY WANT US TO HARNESS IT FOR GOOD AROUND SOME SHARED PRIORITIES AND PROTECT THEM FROM THE HARM AND THAT REQUIRES AN ENORMOUS AMOUNT OF OVERSIGHT WHICH DOES NOT AND WOULD NOT EXIST WITH A CZAR, ONE PERSON. KAILEY: THE SENATE, BEFORE THEY LEFT TOWN, DECIDED LARGELY ON THE BACK OF DEMOCRATS NOT TO ADVANCE THE RATE PAIR PROTECTION ACT THAT YOU AND YOUR COLLEAGUES PASSED IN THE HOUSE. WAS THAT A MISTAKE FOR YOUR CONSTITUENTS IN OHIO? >> THE FACT IS, THAT BILL DIDN’T REALLY REQUIRE THE DATA CENTERS TO PAY FOR EVERYTHING. IT SUGGESTED TO STATES THAT THEY SHOULD, ON A STATE-BY-STATE BASIS, MAKE THE DATA CENTERS PAY BUT THERE WAS NO CARROT, NO STICK. IT DIDN’T HAVE ANY TEETH SO WHAT I HAVE INTRODUCED IS A BILL THAT REQUIRES THE DATA CENTERS TO PAY FOR EVERYTHING AND THEY GET FINED $15 MILLION A DAY IF THEY ARE OUT OF COMPLIANCE AND A IT TRANSFERS THE AUTHORITY IN TERMS OF WHO PAYS TO THE FEDERAL ENERGY REGULATORY COMMISSION. THAT IS A BILL THAT SHOULD HAVE BIPARTISAN SUPPORT AND WOULD ENSURE THAT RATE PEARS ARE PROTECTED. -- RATE PAYERS ARE PROTECTED. JOE: WILL DEMOCRATS FIND RELIGION ON THIS IN THE NEW YEAR OR IN THE LAME DUCK? THIS WAS DIRECTED AT A REPUBLICAN SENATOR FROM OHIO, RIGHT? IT HAD LITTLE TO DO WITH THE ACTUAL BILL IS WHAT WE KEEP HEARING. >> THAT’S A NARRATIVE THAT SOME ARE PUSHING. ON THE HOUSE SIDE WHEN IT CAME UP, MANY OF US VOTED FOR IT BUT THE DISCUSSION WAS IS THIS GOING TO DO ANYTHING AT ALL? AND IS THERE A DOWN SIDE TO SAYING WE’VE DONE SOMETHING WHEN IN FACT IT’S NOT REAL. I THINK THAT WAS MORE OF A DRIVING FORCE THAN ANYTHING ELSE. I DON’T THINK POLITICS WAS THAT INVOLVED. KAILEY: POLITICS WILL BE FRONT AND CENTER WHEN PRESIDENT TRUMP MAKES A VISIT TO JUST NORTH OF YOUR VISIT TOMORROW. DOES HIS COMING TO OHIO HELP OR HURT YOUR OPPONENTS IN THE REPUBLICAN PARTY? >> I THINK IT ULTIMATELY HURTS THEM. HE REPRESENTS THE STATUS QUO. IF YOU WANT MORE OF THE SAME THEN VOTE FOR THE FOLKS THAT CAMPAIGNING WITH TRUMP BECAUSE THEY LIKE WHAT’S GOING ON. MY OPPONENT DOES. JOHN HUSTED DOES. VIVEK VAN SWAMI, WHO’S RUNNING FOR GOVERNOR. THEY LIKE THE TARIFFS. THEY THINK THEY’VE BEEN GOOD EVEN THOUGH MOST OHIO WANTS BELIEVE THE TARIFFS HAVE BEEN VERY BAD FOR THEM. EVERYTHING HAS BECOME VERY EXPENSIVE. THE CANDIDATES THINK THE WAR IS GOING WELL WHEN MOST OHIOANS HATE THIS WAR AND WANT THEIR GAS PRICES BACK TO NORMAL. THE FACT THERE’S NO PROTECTION WHEN IT COMES TO AI OR DADA CENTERS. IT LOOKS LIKE THE POLITICIANS ARE WITH THE SUPER WEALTHY AND NOT THEM. IT’S A REMINDER THAT THERE IS A STATUS QUO THAT THEY HATE, I HATE AND I THINK IT’S GOING TO BE PROBLEMATIC FOR THEM, YEAH. JOE: IF DEMOCRATS, IN FACT, DO TAKE THE HOUSE, HOW WILL YOU MAKE GOOD ON THIS ANTI-DATA SENTIMENT IN THE FORM OF LEGISLATION? >> FEDERAL PROTECTIONS. YOU HAVE TO BAN N.D.A.’S, YOU HAVE TO PASS MY BILL, WHICH IS THE DO NO HARM DATA CENTERS, WHERE THEY ARE REQUIRED TO PAY AND GET FINED DAILY IF THEY ARE NOT PAYING FOR EVERYTHING AND THEN THEY HAVE TO HAVE ENVIRONMENTAL STANDARDS AND ALL OF THAT SHOULD BE BIPARTISAN. KAILEY: DEMOCRATIC CONGRESSMAN GREG LANDSMAN OF OHIO. WE APPRECIATE YOUR TIME. COMING UP, MORE ON ATTORNEY GENERAL TODD BLANCHE’S COMMENTS ON JAY POWELL AND THE D.O.J. INVESTIGATION WITH BLANCHE NOW SAYING POWELL WON’T BE CRIMINALLY PROKED FURTHER. MORE ON "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. KAILEY: THIS IS A BALANCE OF POWER ON BLOOMBERG TV AND RADIO. ALONGSIDE JOE MATHIEU, I'M KAILEY LEINZ. BACK TO THE BREAKING NEWS FROM THE DEPARTMENT OF JUSTICE. ATTORNEY GENERAL TODD BLANCHE TELLING MYLES MILLER THAT A CRIMINAL PROBE INTO FED CHAIR JAY POWELL WILL NOT BE REOPENED, FOLLOWING THIS WEEK'S INSPECTOR GENERAL REPORT ON THE MORE THAN $2 MILLION BUILDING RENOVATION. BLANCHE SAID HE IS SATISFIED WITH THE REPORT'S FINDINGS. HERE'S PART OF THEIR CONVERSATIONS. >> THE INSPECTOR GENERAL FOR THE FED SPENT MORE THAN A YEAR INVESTIGATING THE RENOVATION AT ITS WASHINGTON HEADQUARTERS AND THE WATCHDOG IDENTIFIED SERIOUS ISSUES WITH WHERE THE PROJECT WAS MANAGED BUT NO MISCONDUCT. THE PRESIDENT HAS ASK YOU TO REVIEW THAT REPORT AND DECIDE WHAT HAPPENS NEXT. WHAT DO YOU THINK IS LEFT FOR THE JUSTICE DEPARTMENT TO INVESTIGATE? >> FIRST OF ALL, I THINK THE INSPECTOR GENERAL DID AN INCREDIBLE JOB. A VERY THOROUGH JOB. I HAVE CAREFULLY READ THE REPORT AND MY TEAM HAS LOOKED AT IT AS WELL. WHAT WAS UNCOVERED IS A LOT OF THINGS THAT LOOK WRONG. WHETHER IT'S MISMANAGEMENT OR NOT UNDERSTANDING WHY THE BILLS ARE COMING IN WAY OVER THE EXPECTED BUDGET, WHAT I EXPECT WILL HAPPEN NEXT, I EXPECT IT WILL BE AN AUDITING PROCESS SO THAT THEY HAVE THE AUTHORITY ACCORDING TO THE REPORT TO GO OUT AND AUDIT SOME OF THE WORK THAT WAS DONE TO MAKE SURE THERE'S NOTHING CRIMINAL. IF THEY LEARN ANYTHING THAT RISES TO ANY KIND OF CRIMINAL MISCONDUCT, YOU BETTER BELIEVE WE WILL INVESTIGATE THAT. WE WERE VERY SATISFIED WITH THE REPORT AND IT SHOWED WITH PRESIDENT TRUMP HAS BEEN SAYING FOR A VERY LONG TIME WHICH IS THAT YOU SHOULD NOT HAVE SOMETHING LIKE THIS HAPPEN IN A CITY WHERE YOU HAVE A BUDGET, A BUILDING THAT IS SUPPOSED TO BE BILLED FOR A LOT OF MONEY AND INSTEAD IS BUILT FOR THREE OR FOUR TIMES THE AMOUNT OF MONEY AND THERE DOESN'T SEEM TO BE ANY OVERSIGHT OR ACCOUNTABILITY BY THE LEADERS, BY THE BOARD ITSELF. THAT'S WHAT PRESIDENT TRUMP HE THINKS THERE SHOULD BE SOME ACCOUNTABILITY BY MR. POWELL, AND WE WILL SEE WHAT HAPPENS IN THAT REGARD. I VERY MUCH BELIEVE THAT MR. HOROWITZ, THE INSPECTOR GENERAL, DID A VERY THOROUGH JOB AND WE APPRECIATE HIS WORK. THERE'S MORE WORK TO DO TO UNDERSTAND WHAT HAPPENED ESPECIALLY WHEN IT COMES TO THE CONSTRUCTION COMPANIES AND THE CONSTRUCTION AND MASSIVE OVERBILLING. WE WILL SEE WHAT HAPPENS. >> AFTER READING THAT REPORT, DO YOU BELIEVE JAY POWELL ACTED APPROPRIATELY AND WOULD YOU CONSIDER CRIMINAL INVESTIGATION INTO JAY POWELL? >> I THINK IT'S PRETTY CLEAR HE DID NOT ACT APPROPRIATELY AS FAR AS OVERSIGHT AND THAT'S WHAT THE INSPECTORS CONCLUDED. NOT MAKING MISTAKES, NOT HAVING ANY SORT OF OVERSIGHT OVER THE FOLKS DOING BILLION-DOLLAR PROJECTS IS NOT NECESSARILY A CRIME. NOT GOING TO TALK ABOUT A CRIMINAL INVESTIGATION. WE CLOSED THAT AS YOU KNOW AND WE ARE NOT REOPENING OF CRIMINAL INVESTIGATION INTO HIM. THERE'S A BIG DIFFERENCE BETWEEN WHETHER HE DID ANYTHING WRONG AND WHETHER HE SHOULD BE FOUND ACCOUNTABLE, AND WHETHER THERE'S ANY CRIMINAL CONDUCT. I THINK THAT AG -- IG REPORT SPEAKS FOR ITSELF ON WHAT THE BOARD DID OR DID NOT DO AND WE SHOULD FOCUS ON THAT SORT OF ACCOUNTABILITY. THAT'S WHAT THE PRESIDENT EXPECTS ME TO DO AND THAT'S WHAT WE ARE DOING. JOE: ATTORNEY GENERAL TODD BLANCHE SPEAKING EXCLUSIVELY WITH BLOOMBERG'S MYLES MILLER. DON'T MISS THE FULL CONVERSATION. THERE'S A LOT MORE WHERE THAT CAME FROM ON BLOOMBERG THIS WEEKEND WITH DAVID GURA, CHRISTINA RUFFINI AND LISA MATEO RIGHT HERE ON BLOOMBERG TV AND RADIO. LET'S ASSEMBLE OUR POLITICAL PANEL, JEANNE SHEEHAN ZAINO IS WITH US, DEMOCRACY VISITING FELLOW AT HARVARD KENNEDY SCHOOL'S ASH CENTER ALONGSIDE REPUBLICAN STRATEGIST AND PARTNER AT STONECOURT CAPITAL AND BLOOMBERG COP -- POLITICS CONTRIBUTOR. GREAT TO SEE YOU BOTH. WE MADE IT TO FRIDAY. A BIG CONVERSATION ABOUT MONEY. RICK DAVIS, REPUBLICANS ARE PULLING BACK IN NORTH CAROLINA AND THEY ARE GIVING TO KANSAS. I WILL REMIND EVERYONE IN NORTH CAROLINA, RUNNING IS THE FORMER CHAIR OF THE REPUBLICAN NATIONAL COMMITTEE MICHAEL WHATLEY. PRESIDENT TRUMP WAS JUST TALKING ABOUT HIM. LISTEN FIRST. >> I HOPE HE WINS. A GREAT LEADER FOR THE WHOLE REPUBLICAN PARTY AND HE WOULD BE A GREAT SENATOR. AS YOU KNOW THE MAN COOPER, HE HAS A LOT OF BAD CRIME NUMBERS. JOE: HE SAID, I'M WORRIED ABOUT HIM, IF YOU COULDN'T HEAR OVER THE CHOPPER. THIS FOLLOWS A COUPLE LINES FROM LAST EVENING WHEN HE WAS SPEAKING IN OKLAHOMA. WE ARE WORRIED ABOUT MICHIGAN, WE ARE WORRIED ABOUT TEXAS, WE ARE WORRIED ABOUT A FEW STATES. WHAT KIND OF TALK IS THIS 32 DAYS OUT? >> PRETTY PRACTICAL. HE'S READING THE POLLS. IT'S PRETTY OBVIOUS REPUBLICANS ARE IN A PLUNGE. THE PRESIDENT'S APPROVAL RATINGS HAVE GONE WAY SOUTH OVER THE LAST YEAR. HE WAS AT PLUS 13 IN TEXAS, PLUS 16 IN KANSAS WHEN HE WON REELECTION AND NOW HE'S UNDERWATER IN EVERY ONE OF THOSE STATES. OTHER THAN KANSAS AND ALABAMA WHERE HE IS BASICALLY BREAKEVEN. THE FACT THAT THEY ARE COMPETITIVE ON A STATEWIDE BASIS RIGHT NOW IS A REALLY BAD INDICATION OF THE KIND OF CONDITION THESE CAMPAIGNS ARE IN AND THEY HAVEN'T BROKEN OUT. HE SOMETIMES LOOK AT, MAYBE THE CANDIDATES WILL BE REALLY GREAT AND THEY WILL BREAK OUT FROM THE CURRENT TRAJECTORY THE REPUBLICANS HAVE, BUT THEY ARE NOT DOING THAT. THERE'S NOT A CANDIDATE OTHER THAN MAYBE JOHN SUNUNU IN NEW HAMPSHIRE, AND IN MAINE WHERE THE REPUBLICAN IS HOLDING ITS OWN REGARDLESS OF THE PRESIDENT'S NUMBERS IN THOSE STATES. KAILEY: AS WE CONSIDER THE MONEY MOVING AROUND WITH THIS RECOGNITION, AS JOE POINTED OUT, THE SENATE LEADERSHIP FUND IS PULLING MONEY OUT OF NORTH CAROLINA AND SENDING IT TO KANSAS. DOES THAT MEAN DEMOCRATS NEED TO DO THE SAME THING? ROY COOPER HAS GOT THIS, GIVE MORE MONEY TO HAMILTON? >> I THINK ROY COOPER IS HOLDING HIS OWN AND PART OF IT IS WHAT RICK WAS TALKING ABOUT. WATLEY HAS PROVEN NOT TO BE SUCH A GREAT CANDIDATE, AND OF COURSE ROY COOPER HAS TWO TERMS BEHIND HIM, HUGE NAME RECOGNITION. WHAT DONALD TRUMP IS TALKING ABOUT IS ABSOLUTELY RIGHT. THEY ARE IN TROUBLE. THAT IS WHY HE AND THE VICE PRESIDENT ARE SPENDING TIME IN THESE RUBY RED DISTRICTS AND STATES ACROSS THE COUNTRY. I DO THINK THAT DEMOCRATS ARE RIGHTLY INVESTED IN ALL OF THESE RACES AND NOW THAT KANSAS IS A POTENTIAL PICKUP, THEY ARE RIGHTLY INVESTED THERE. IF YOU ARE DEMOCRATS, YOU KEEP DOING WHAT YOU'RE DOING BECAUSE YOU WANT THE REPUBLICANS TO BE FORCED TO DEFEND STATES WHERE YOU HAVE REPUBLICAN INCUMBENTS AND STATES THAT SHOULD REALLY BE IN THE POCKET ALREADY WERE DONALD TRUMP WON BY DOUBLE DIGITS. THE FACT THAT DEMOCRATS ARE COMPETING THERE IS A HUGE BOON FOR DEMOCRATS. A COUPLE OF THE STATES RICK JUST MENTIONED, MAINE AND NEW HAMPSHIRE, THOSE ARE MORE WORRISOME FOR DEMOCRATS. BUT THE IDEA THAT YOU'VE GOT SOME OF THESE OTHER STATES THAT SEEM TO BE GOING THEIR WAY IS A HUGE BOON WHEN THE MAP DID NOT LOOK GOOD A YEAR AGO. JOE: THE SENATE LEADERSHIP FUND ALREADY SPENT MORE THAN $30 MILLION ON MICHAEL WATLEY. WHAT DOES THIS MEAN FOR A CAMPAIGN WHEN THE ESTABLISHMENT TURNS AWAY LIKE THAT? IS IT EFFECTIVELY LOST? >> FIRST OF ALL, IT'S A HORRIBLE NEWS STORY. YOU CAN IMAGINE WITH THE NEWS IN CHARLOTTE IS TODAY, THE REPUBLICAN BAIL OUT OF WATLEY'S CAMPAIGN AND THAT IS HARD TO OVERCOME. BY THE WAY, THAT INFLUENCES ALL THE DONORS. THE SENATE COMMITTEE NOT PUTTING MONEY, WHY SHOULD I? I WILL FOLLOW THEM TO A COMPETITIVE RACE. THE IDEA IS TO USE MY MONEY TO WIN, NOT TO LOSE. THAT USUALLY INCLUDES. SO HE'S GOING TO WAKE UP A WEEK FROM NOW AND REALIZE HE'S GOT NO MORE FUNDRAISING. SO WHATEVER HE HAS IN THE BANK IS THE ONLY THING HE HAS LEFT TO SPEND. KAILEY: SO MICHAEL WATLEY MAY NOT HAVE MUCH MONEY COMING IN BUT DEMOCRATS HAVE A LOT OF IT. ACT BLEW OUT WITH NEW NUMBERS, $833 MILLION RAISED FOR DEMOCRATIC CANDIDATES FROM FEDERAL TO LOCAL ELECTIONS. THE BULK OF THAT IS 600 MILLION DOLLARS. WHAT DO DEMOCRATS NEED TO DO WITH THAT NOW? >> THEY CAN USE EVERY BIT OF IT BECAUSE THAT HAS BEEN ONE GREAT SPOT FOR REPUBLICANS IN AN OTHERWISE DIFFICULT CYCLE THAT THEY HAVE HAD MONEY TO SPEND. OF COURSE WE'VE TALKED ABOUT DONALD TRUMP'S MAGA SUPER PAC HAS NOT SPENT AS MUCH AS REPUBLICANS WANT. BUT DEMOCRATS HAVE BEEN ON THE BACK FOOT AND THIS SHOWS AN ENORMOUS AMOUNT OF ENTHUSIASM PARTICULARLY AMONGST SMALL DONORS ON THE DEMOCRATIC SIDE. GOOD NEWS BEGETS GOOD NEWS IN THESE THINGS. PEOPLE ARE LOOKING AT THE SAME POLLS WE ARE IN THE SAME POLLS DONALD TRUMP IS. THE SAME POLLS STEVE DAINES IS. YESTERDAY HE'S TALKING ABOUT THE FACT THAT THIS MAY BE A REPEAT OF A BIG RED WIPEOUT IN 2006. THEY KNOW THEY'VE GOT A SHOT HERE SO THEY ARE FEELING GOOD AND DONATING. THIS IS GOING TO GO TO CANDIDATES ACROSS THE BOARD WHO ALL NEED THE SUPPORT. I THINK WE CAN'T FORGET THE MAP IN THE SENATE STILL WORKS AGAINST DEMOCRATS AND MANY OF THESE RACES ARE RAZOR THIN, SO THEY NEED THIS FUNDING AT THE FEDERAL, STATE AND LOCAL LEVELS. JOE: 115 PERCENT INCREASE FOR FEDERAL CANDIDATES, THE BIGGEST HOLE IS NOT A SHOCKER. CALIFORNIA, NEW YORK, AND YES, TEXAS. THIS WILL BE THE MOST EXPENSIVE RACE I PRESUME OF THE CYCLE. WHAT WILL BE THE LESSON LEARNED HERE WITH MONEY DOWN THE DRAIN POTENTIALLY FOR KEN PAXTON? >> THE FIRST LESSON IS THERE'S PLENTY OF MONEY IN THE POLITICAL SYSTEM. THIS QUARTER WAS A BIG RECORD FOR ACT BLEW, BUT THE PREVIOUS RECORD WAS LAST QUARTER. THEY ARE SETTING ALL KINDS OF NEW PRESIDENTS FOR DEMOCRATS AND THERE'S NO QUESTION THAT DONALD TRUMP IF HE'S KNOWN FOR ONE THING POSITIVELY FOR THE REPUBLICAN PARTY, IT IS THAT HE CAN RAISE ENORMOUS AMOUNTS OF MONEY FOR CANDIDATES IN THE REPUBLICAN PARTY. THAT'S NUMBER ONE. ARE WE AT THE POINT WHERE WE ARE SATURATING THE POLITICAL SYSTEM WITH CATCH -- CASH? DO WE NEED REFORM? I AM ON THE REFORM SIDE. TWO, IS MONEY REALLY WORTH IT? WE WERE TALKING ABOUT WATLEY'S CAMPAIGN AT $30 MILLION AND HE DID NOT GO UP A SINGLE PERCENTAGE POINT. SOMEONE HAS TO LOOK AT THAT AND GO, WHAT IN THE WORLD IS GOING ON UP THERE? NORMALLY WE CAN MOVE ON -- NUMBERS IN A STATE LIKE NORTH CAROLINA WHERE WE ARE COMPETITIVE. WHAT HAPPENS WHEN YOU REALIZE WE ARE SPENDING HUNDREDS OF MILLIONS AND NOT GETTING ANYTHING FOR IT? KAILEY: AS YOU SAY, TRUMP IS A GOOD FUNDRAISER. HE OFTEN DOESN'T NEED IT TO GET ATTENTION. HE THE KING OF FREE MEDIA. WHEN HE'S TRAVELING TO TEXAS AND OKLAHOMA, YESTERDAY ALABAMA, TODAY OHIO, NEBRASKA MONDAY, HOW MUCH WILL HE BE ABLE TO ACCOMPLISH? >> THERE'S NO QUESTION THE GUY DOMINATES THE NEWS MEDIA WHENEVER HE'S IN THE STATE. HE WILL BE IN ALABAMA AND GEORGIA WILL GET THAT NEWS, MISSISSIPPI WILL GET THE NEWS AND LOUISIANA WILL GET THE NEWS. HE DOES DOMINATE. BUT PART OF THE THING THAT'S HAPPENING NOW IN TRUMP WORLD IS THAT HE USED TO MOVE THE NUMBERS POSITIVELY. NOW THERE'S EVIDENCE HE IS MOVING THEM NEGATIVELY. WHEN HE GOES TO THESE LOCATIONS IN TEXAS AND ALABAMA, AND OHIO AND KANSAS AND STARTS TALKING ABOUT THE BALLROOM OR A REFLECTING POOL, IT IS REALLY HURTING OUR CANDIDATES AND HE CAN'T HELP HIMSELF. THESE ARE THE THINGS HE LOVES AND HE THINKS EVERYBODY SHOULD KNOW ABOUT THE THINGS HE LOVES. SO THERE IS GOING TO BE A TIME AND I THINK IT'S HAPPENING RIGHT NOW WHERE CANDIDATES ARE GOING, PLEASE DO NOT COME INTO MY DISTRICT. [LAUGHTER] I DON'T WANT ANYBODY SPENDING THE DAY TALKING ABOUT BALLROOMS. JOE: YOU WONDER IF THEY LISTEN WHEN THAT PHONE CALL TAKES PLACE. AT THE ALABAMA EVENT, THE PRESIDENT IS ROLLING OUT OR TOTING A MORE THAN $3 MILLION BRIDGE PROJECT. IT WAS A STEEL PLAN FOR IOWA AND LNG DEAL FOR ALASKA. HE IS STILL PROMISING THE $5,000 CHECKS. DO THESE TYPES OF PROMISES WORK IN A POLITICAL ENVIRONMENT LIKE THIS? >> THEY MAY HAVE A SHOT IF HE COULD FOLLOW THROUGH. BUT I SAW ONE TRACKER ABOUT THE NUMBER OF TIMES DONALD TRUMP HAS PROMISED THE AMERICAN PEOPLE MONEY, CASH, GOODS, AND NOT FOLLOWED THROUGH. SO IT STARTS TO FALL ON DEAF EARS. IN THE CASE OF ALASKA, HE STOOD THERE WITH DAN SULLIVAN AND SAID THEY HAD AN AGREEMENT WITH SOUTH KOREA. IT WAS LIKE 24 WAS LATER SOUTH KOREA SAID NO DEAL. SAME THING WHEN YOU'RE TALKING ABOUT THE STEEL MILL. AND NOW HE'S IN ALABAMA. YOU CAN KEEP TRYING TO DO GIVEAWAYS, BUT THE THING HE SHOULD BE DOING IS TALKING ABOUT FIXING THE ECONOMY AND HE SIMPLY REFUSES TO DO THAT. HE IS IN TEXAS YESTERDAY, ONCE AGAIN AFFORDABILITY IS A HOAX. THEN TALKING ABOUT THE FACT THAT HE CAN TAKE EITHER STAIRS OR A RAMP. HE SAID THAT OVER AND OVER AGAIN. THIS IS THE KIND OF JUNK THAT JUST DOESN'T HELP PEOPLE WHEN THE ECONOMY IS THIS BAD. JOE: THE OPRAH-IZATION OF POLITICS, I LIKE THAT. KAILEY: BACK TO YOUR POINT, THESE ARE NOT THE THINGS CANDIDATES WANT HIM TO TALK ABOUT. IF YOU ARE JOHN HOUSTON IN OHIO TOMORROW HAVING JUST FAILED TO ADVANCE A RATEPAYER PROTECTION ACT THAT YOU WERE HOPING WOULD BE A LAST-MINUTE HAIL MARY TO SIGNAL TO YOUR CONSTITUENTS THAT YOU ARE NOT WITH DATA CENTERS, WHAT DO YOU NEED THE PRESIDENT TO ACTUALLY HELP YOU? >> WE WOULD LOVE THE PRESIDENT TO SAY WE NEED HIM IN THE SENATE TO PASS THE RATEPAYER PROTECTION BILL THAT I WILL SIGN INTO LAW BECAUSE HE'S DOING THE RIGHT THING. BUT WHAT CHANCE DO WE THINK THAT WILL HAVE? THE PRESIDENT JUST DOESN'T LIKE POLICY. I THINK IN JOHN HOUSTON'S CASE, HE'S RELYING ON THE REPUBLICAN PARTY IN OHIO AND NEEDS THE PRESIDENT TO JUICE HIM UP. THE MORE WE CAN TALK ABOUT THESE CORE, LOOK WHAT I DID ON THE BIG BEAUTIFUL BILL AND ALL THE TAX ISSUES, THINGS THAT PEOPLE LIKED ABOUT THE TRUMP ADMINISTRATION. THAT’S A GOOD THING. WE’LL SEE. JOE: THANK YOU BOTH. HAVE A GREAT WEEKEND. COMING UP, ELECTION SEASON IS NOT JUST HERE AT HOME. WE’LL TAKE YOU TO WHERE BRAZIL WHERE VOTERS HEAD TO THE POLLS. PLUS, THE U.S.-CANADA TRADE FIGHT HITTING THE LIQUOR AISLE. WHAT NEW RICINGS MEAN FOR AMERICAN DISTILLERS. ON "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. KAILEY: THIS IS "BALANCE OF POWER" ON BLOOMBERG TV ASK VIDEO. ALONGSIDE JOE MATHIEU, I’M KAILEY LEINZ. IN BRAZIL VOTERS WILL SELECT THEIR NEXT PRESIDENT AND THE FUTURE OF THE COUNTRY’S CONGRESS THIS WEEKEND. PRESIDENT LULA LOOKING FOR A THIRD TERM FACING FLAVIO BOLSONARO IN A RACE TOO CLOSE TO CALL. WHEN YOU LOOK AT THE POLLING IN THE PRESIDENTIAL CONTEST THAT ARE LITERALLY NECK AND NECK IN THE POLLS. OF COURSE PRESIDENT TRUMP IS HOPING THAT THE SON OF BOLSONARO IS GOING TO BE THE RUN WHO YOU WILL PULLS THIS OUT. JOE: A FRIEND OF THE PRESIDENT. WE’LL BE TRACKING THIS OVER THE COURSE OF THE WEEKEND AND WE SUGGEST AS WELL WHAT YOU TUNE INTO BLOOMBERG THIS WEEKEND FOR MORE. SATURDAY AND SUNDAY, WE’LL BE UNPACKING THIS ON MONDAY. THE TRADE STANDOFF BETWEEN THE U.S. AND CANADA ENTERING A NEW PHASE AFTER A U.S. BAN ON MANY CANADIAN IMPORTS TOOK EFFECT. PLUNGING 70%, AMERICAN EXPORTS TO CANADA. THE INDUSTRY IS WARNING THAT THE BACK AND FORTH COULD TAKE A BIGGER TOLL. WE TURN TO THE PRESIDENT AND C.E.O. OF THE DISTILLED SPIRITS COUNCIL OF THE UNITED STATES AND A MAN ABOUT TUNE HERE IN WASHINGTON, D.C. ON SEPTEMBER 29 THE U.S. BARRED IMPORTS OF CANADIAN WHISKEY. THIS IS AN INTERESTING CONVERSATION BECAUSE THE LAST TIME UP YOU WERE WITH US, YOU MADE CLEAR THAT THIS WAS BAD FOR BOTH SIDES, THAT THE TRIP EXPERIENCE AND, OF COURSE, THE BANNING OF LIQUOR IS NOT A ZERO SUM GAME. HOW DO YOU SEE THIS LATEST DEVELOPMENT FOR AMERICAN LIQUOR? >> UNFORTUNATELY, REALLY, OVER THE PAST SEN. OR EIGHT YEARS, GIVEN THE ICONIC NATURE OF DISTILLED SPIRITS, BRANDS AND MARKETS AROUND THE WORLD, WE’VE BECOME A TARGET AND IT’S GOING TO BE IMPACTFUL ON THE AMERICAN HOSPITALITY ECONOMY, THE CANADIAN HOSPITALITY ECONOMY. THE U.S. REPRESENTS 93% OF THE CANADIAN SPIRITS INDUSTRY SO IT’S GOING TO HURT BUT IT’S BEEN A YEAR AND A HALF SINCE MANY OF THE PROVINCE LABOR UNLESS CANADA DECIDED TO TRY TO USE BANNING AMERICAN PRODUCTS ON THE SHELVES IN CANADA AS A LEVERAGE POINT AND WE APPRECIATE THE ADMINISTRATION’S EFFORTS TO TRY TO GET IN RESOLVED. WE’RE MANY IN HIGH HOPES, ENCOURAGING BOTH ADMINISTRATIONS TO GET AMERICAN SPIRITS BACK ON THE SHELVES AND CERTAINLY WE DON’T WANT A BAN OF CANADIAN PRODUCTS AS WELL. YOU CAN ONLY MAKE CANADIAN WHISKEY IN CANADA. SAME WITH AMERICAN WHISKEY. SAME WITH TEQUILA IN MEXICO. IT’S GOING TO BE HARD ON THE AMERICAN ECONOMY AND FOR CERTAIN DEVASTATING ON THE CANADIAN ECONOMY. KAILEY: THE PRESIDENT SAID HE WANTS TO ACHIEVE BRINGING MORE INDUSTRY HERE. DOES THAT WORK IF THEIR PRODUCTS ARE WELLIVELY CHEAPER? >> SURE, YOU WOULD THINK IN CANADA FOR A BAN FOR A YEAR AND A HALF, I THOUGHT THEY THOUGHT THIS WOULD HELP CANADIAN SPIRITS. BUT THEY’VE LOST REVENUE AND CANADIAN SPIRITS HAVE NOT THRIVED. WE LIKE TO COMPETE BY SIP AND TASTE AND OUR INDUSTRY THRIVES WHEN THERE ARE NO TRADE BARRIERS AND ZERO TO ZERO TARIFFS. OUR INDUSTRY HAS THRIVED AS A RESULT OF THAT. IT’S BEEN AN UNFORTUNATE YEAR AND A HALF AND WE HOPE IT GETS RESOLVED SOONER RATHER THAN LATER. JOE: WE TALKED TO DOUG FOREST A COUPLE OF MONTHS AGO AND HE SAID HE WOULD BE WILLING TO RESTOCK CANADIAN SHELVES WITH AMERICAN LIQUOR AS SOON AS THERE WAS A GREATER DEAL SO WE KNOW THAT THIS IS POSSIBLE. BUT UNTIL THEN, THESE ARE TOUGH TIMES FOR DISTILLERS. NOT ONLY THE TARIFFS, YOU’RE DEALING WITH G.L.P.-1’S. >> IT’S BEEN A ROUGH TIME IN TERMS OF PREINDICTABILITY. -- PREDICTABILITY. IN ADDITION TO PROVINGSIAL BANS AND NOW DEALING WITH THE BAN OF CANADIAN EXPERTS COMING INTO THE UNITED STATES. IT’S GOING TO AFFECT BARS ON BOTH SIDES OF THE BORDER AND THERE’S A LINE OF ONE. THERE’S NO LIGHT BETWEEN US AND THE SAME APPLIES FOR US AND OUR EUROPEAN OR MEXICAN OR IRISH COUNTERPARTS. THIS INDUSTRY IS UNIQUE BECAUSE OF OUR DISTINCTIVE PRODUCTS AND WE’RE GOING TO DO EVERYTHING WE CAN TO GET IN RESOLVED AND ENCOURAGE GROWTH BOTH GOVERNMENTS. THERE ARE PLENTY OF OPPORTUNITIES. IN INDIA THERE’S BEEN AN HISTORICAL 150% TARIFF ON THE AMERICAN SPIRITS AND WE KNOW THE ADMINISTRATION IS NEGOTIATING WITH THE INDIAN GOVERNMENT ON THAT AND THAT COULD BE A BIG LONG-TERM OPPORTUNITY BUT IN THE SHORT TERM AS WE LEAD INTO THE HOLIDAY SELLING SEASON WHICH IS PRIMARY, PRIORITY FOR THE INDUSTRY THIS IS GOING TO BE HURTFUL SO WE HOPE IT GETS RESOLVED SOON. KAILEY: JOE MENTIONED G.L.P.-1’S BUT I HEAR THAT YOUNG PEOPLE AREN’T DRINKING ALCOHOL ANYMORE. WHAT ARE THE OVERALL OUTLOOKS FOR LIQUOR LONG TERM? >> IT’S BEEN A CONTRACTING MARKET. WHETHER IT’S GLP’S. YOUNG PEOPLE AREN’T DRINKING THE WAY THEY USED TO. INFLATIONARY CHALLENGES BUT THE DISTILLED SPIRITS INDUSTRY, WE LEAD WITH THE GREATNESS OF OUR PRODUCTS AND INNOVATION AND SPIRITS-BASED READY TO DRINK PRODUCTS ARE THE FASTEST GROWING SEGMENT IN BEVERAGE ALCOHOL. WE’RE FLYING THROUGH TURBULENCE. WE’RE GOING TO NAVIGATE THROUGH THERE STORM BUT NO DOUBT IT’S BEEN A CHALLENGING COUPLE OF YEARS. JOE: ARE YOU BOURBON OR RAI? JOE: KENTUCKY BOURBON? >> BUT I HAVE THE HONOR OF REPRESENTING ALL CATEGORIES. IT’S A GREAT INDUSTRY. KAILEY: A PERFECT ENDING TO OUR FRIDAY SHOW. DISTILLED SPIRITS PRESIDENT AND C.E.O. CHRIS SWONGER. THAT WILL DO IT. THANK YOU SO MUCH FOR THE WEEK BUT IT WILL BE A BUSY WEEKEND WITH PRESIDENT TRUMP ON ROAD. JOE: DID HE BRING SAMPLES? WAIT, DON’T LET CHRIS LEAVE THE STUDIO YET. THANK YOU FOR JOINING US ON "BALANCE OF POWER."