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00:00ANNOUNCER: FROM THE WORLD OF POLITICS TO THE WORLD OF BUSINESS, THIS IS BALANCE OF POWER WITH DAVID WESTIN. DAVID: FROM OUR BLOOMBERG -- JOE: FROM OUR BLOOMBERG STUDIOS IN WASHINGTON DC TO OUR AUDIENCES WORLDWIDE, WELCOME TO BALANCE OF POWER IN FOR DAVID WESTIN TODAY. INVESTORS ARE LOOKING FOR THE RELEASE OF THE FOMC MINUTES, FED MINUTES SET TO DROP AT 2:00 P.M. EASTERN TIME. FOR MORE, WE BRING IN MICHAEL MCKEE, BLOOMBERG INTERNATIONAL ECONOMICS AND POLICY CORRESPONDENT. IT IS GREAT TO SEE YOU. WE FIND OUT IN TWO HOURS, WILL THE ANSWER BE SLOWING RATE HIKES OR WILL WE SEE SOME POLICYMAKERS LOOKING FOR A HIGHER TERMINAL RATE? > > PROBABLY A LITTLE BOWS AND THAT WILL BE THE SUSPENSE FOR THE LAST BIT OF NEWS WE HAVE BEFORE THE THANKSGIVING HOLIDAY, SO THOSE OF YOU ON TRADING FLOORS, ALL TWO OF YOU LAUGHED BY THEN, THIS IS WHAT WE WILL BE LOOKING FOR. NOT A LOT. THE REASON WHY IS THIS IS THREE-WE CALL DATA AND WE ARE GOING FORWARD FROM THERE AND EVERYBODY HAS TALKED A LOT SINCE THEN. THE DECISION WAS UNANIMOUS, THERE WAS NO DAYLIGHT BETWEEN ANYBODY ON THE FED ON NOVEMBER 2 AND JAY POWELL CAME OUT IN HIS NEWS CONFERENCE AND SAID EVERYBODY THINKS THE TERMINAL RATE WILL PROBABLY HAVE TO GO UP BECAUSE INFLATION IS PROVING STICKIER THAN WE THOUGHT. MAYBE TIME TO SLOW THE PACE AND THAT IS A MESSAGE THAT HAS BEEN UNDERSCORED BY ALL OF THE FED OFFICIALS WHO HAVE SPOKEN SINCE THEN WHICH IS MOST OF THEM WHO ARE ON THE COMMITTEE AND MOST OF THEM FELT RATES WILL HAVE TO BE HIGHER FOR LONGER. THAT IS THE MESSAGE THAT THEY WILL WANT TO DELIVER IN THE MINUTES TODAY. THE THING ABOUT THE MINUTES, THEY ARE EDITED AFTER THE MEETING AND OVER THE LAST COUPLE WEEKS THEY CAN SHAPE THEM THE WAY THEY WANT AND PROBABLY WANT TO DELIVER THE MESSAGE WE ARE STILL SERIOUS HAND RATES ARE STILL GOING TO BIND BECAUSE LOOK AT WHAT IS HAPPENING TO THE FINANCIAL CONDITIONS INDEX. THIS IS GOLDMAN ' S. THERE ARE A NUMBER OF THEM A BASICALLY FINANCIAL CONDITIONS ARE GETTING EASIER AND THAT IS NOT WHAT THE FED WANTS TO SEE. THE OTHER THING, I ' VE GOT A POINT THIS OUT IS WE HAVE HAD A LOT OF PEOPLE COMPLAINING ABOUT HOW MUCH THE FED TALKS AND SAYING THAT IS REALLY CONFUSING PEOPLE ON WALL STREET. I WANT TO TAKE YOU BACK HERE, THE LITTLE RED DOT, THAT WAS FEBRUARY 4, 1994 WHEN ALAN GREENSPAN RELEASED THE FIRST STATEMENT ABOUT WHAT THE FED HAD ACTUALLY DONE STARTED THE WHOLE FED TRANSPARENCY THING, GOT EVERYBODY TALKING, AND I THINK WALL STREET HAS DONE OK SINCE THEN. JOE: PRETTY INCREDIBLE. MICHAEL MCKEE, THANK YOU. MICHAEL WILL BE HERE AGAIN TO A COPY OF EASTERN TIME WITH THOSE MINUTES AND WE WILL HAVE THAT LIVE ON BLOOMBERG. THANK YOU. TURNING TO POLITICS, THE QUESTION OF WHAT CAN BE DONE IN THE LAME-DUCK SESSION BEFORE REPUBLICANS TO CONGRESS? IN THE NEXT SESSION BEGINS NEXT YEAR. CONGRESSMAN JIM CLYBURN OF SOUTH CAROLINA WHO SERVES AS THE HOUSE MAJORITY WHIP IS WITH US NOW. CONGRESSMAN, IT IS GREAT TO HAVE YOU AND WE THANK YOU FOR BEING HERE THIS DAY BEFORE THANKSGIVING. I WOULD LIKE TO START WITH NEWS OF ANOTHER MASS SHOOTING, SIX DEAD AT A WALMART IN VIRGINIA, ALMOST A WEEK AFTER A SHOOTING THAT TOOK THREE LIES AT THE UNIVERSITY OF VIRGINIA FOLLOWING THE MASS SHOOTING IN COLORADO SPRINGS. CONGRESSMAN, YOU MANAGED TO PASS A LAW THAT INCENTIVIZES STATES TO CREATE THEIR OWN RED FLAG LAWS. WHAT ELSE CAN CONGRESS DO TO PREVENT THESE SHOOTINGS? > > THANK YOU FOR HAVING ME. WE DID PASS THE LAW AND IT SEEMS THAT WOULD HAVE BEEN OPERATIVE IN COLORADO SPRINGS BUT THE LOCAL STATE LAWS THERE SEEM TO HAVE ALMOST NULLIFIED THAT OR MADE IT INOPERATIVE. A LOT HAS TO BE DONE. A LOT ON THE FEDERAL LEVEL, WHICH WE HAVE DONE, IN ADDITION TO THIS BILL THAT WE PASSED, SAFE FOR COMMUNITIES ACT. IT SERVED A LOT OF PURPOSES. FOR THE FIRST TIME WE WERE ABLE TO DO SOME THINGS FOR LAWS BUT THAT HAD NOT BEEN DONE IN 30 YEARS. AND ADDITIONAL BACKGROUND CHECKS. WE ALSO PASSED IN THE HOUSE AN ASSAULT WEAPONS BAN WHICH REALLY WOULD HAVE BEEN OPERATIVE IN COLORADO SPRINGS. BECAUSE OF ALL OF THE STUDIES INDICATE THAT THESE ASSAULT WEAPONS BANDS DRIVE DOWN MASS SHOOTINGS BY 70%. SO WE HAVE DONE A LOT, THEY CAN STILL DO MORE -- WE CAN STILL DO MORE, BUT IT MUST BE COOPERATION BETWEEN FEDERAL LAWS AND STATE LAWS TO BE EFFECTIVE WHEN BEING IMPLEMENTED AT THE LOCAL LEVELS. JOE: LET ME ASK YOU ABOUT THAT ASSAULT WEAPONS BAN, CONGRESSMAN. PRESIDENT BIDEN IS OUT WITH A STATEMENT FOLLOWING THE SHOOTING CALLING FOR GREATER ACTION AND HE SAID -- SPECIFICALLY TALKS ABOUT HAVING REPEATED CLEVIS IS ON THE CAMPAIGN TRAIL ON ACTUALLY GETTING THIS DONE. LISTEN TO WHAT HE SAID NOVEMBER 3. PRES. BIDEN: WHEN I WAS A SENATOR, I PASS THE ASSAULT WEAPONS BAN AND I WILL DO IT AGAIN. JOE: HE ' S PROMISING TO DO IT AGAIN. IS THAT PROMISE OR -- IS THAT PROMISEABLE OR REALISTIC? REP. CLYBURN: I THINK IT IS POSSIBLE. THE FIRST STEP IS TO GET THE VOTES WE NEED IN GEORGIA ON DECEMBER 6 IF THE SENATE CAN PICK UP ONE OF THEIR VOTES, WE WILL BE ABLE TO GET BE ON THE FILIBUSTER AND PASS THAT. WE ARE ALREADY PASSING THE HOUSE , NOTE IT HAS TO BE REINTRODUCED AGAIN IN JANUARY, BUT I WANT PEOPLE TO TAKE A LOOK AT THOSE DISTRICTS. ESPECIALLY IN NEW YORK. WE ARE GOING TO BE ABLE TO GET REPUBLICAN VOTES FOR ASSAULT WEAPONS BAN. JOE: WHAT ELSE CAN GET DONE IN THIS LAME-DUCK SESSION OF CONGRESS, CONGRESSMAN? AS A CODIFYING SAME-SEX MARRIAGE, DEALING WITH THE DEBT CEILING, OR WILL LAWMAKERS BE STRESSED TO FIND A WAY TO FUND THE GOVERNMENT ' S MONTH? > > I THINK ALL OF THAT WILL GET DONE. I DO BELIEVE WE WILL PASS THE LAWS. I THINK WE WILL GET THIS APPROPRIATIONS BILL DONE AND WE ARE GOING TO CODIFY SAME-SEX MARRIAGE AND I BELIEVE WE CAN DO SOMETHING, WE MUST DO SOMETHING ABOUT THE ELECTORAL COLLEGE REFORM AND I WOULD HOPE WE WOULD LATCH ONTO THAT, THE VOTING RIGHTS ADVANCEMENT ACT. IF I FOUND OUT ANYTHING IN THIS ELECTION IS VOTERS WANT OUR DEMOCRACY TO BE THERE FOR EVERYBODY, AND GOING FORWARD TOWARD A MORE PERFECT UNION. WE DO NOT WANT TO SEE THIS COUNTRY CEASE THAT TREND TOWARD PERFECTION. JOE: CONGRESSMAN, YOU ARE ONE OF THE MOST POWERFUL DEMOCRATS IN THE U.S. HOUSE AND ON CAPITOL HILL. YOU HAVE INDICATED RECENTLY YOU PLAN TO RUN FOR ASSISTANT DEMOCRATIC LEADER. HAVING SEEN BOTH NANCY PELOSI AND THE OTHER TWO LEADERS IN THE HOUSE, THEY DECIDED TO STEP DOWN AND CONTINUED TO SERVE. WHAT MAKES YOU WANT TO CONTINUE TO BE PART OF THE DEMOCRATIC LEADERSHIP AS OPPOSED TO ALLOWING A YOUNGER GENERATION? > > I DID STEP DOWN. I ' M NOT IN THE TOP THREE. I ' M STEPPING BACK FROM THE TABLE BUT I DO PLAN TO REMAIN AT THE TABLE. I TALKED WITH LEADERSHIP, THE NEW LEADERSHIP COMING IN. THEY WOULD LIKE TO HAVE A SEAMLESS TRANSITION FROM ONE GENERATION TO THE OTHER AND I HAVE A RELATIONSHIP WITH THE BASE OF THE DEMOCRATIC PARTY THAT IS VERY CRITICAL TO US BEING ABLE TO HOLD -- CHECK, HOLD ONTO AS WE GO ON TO TRY TO RETAKE THIS MAJORITY. I BELIEVE STRONGLY UNIVERSITIES MUST PLAY A ROLE IN THAT, THE AFRICAN-AMERICAN FAITH COMMUNITY IS BASIC TO WHAT WE DO AND WE HAVE TALKED ABOUT HOW TO MAKE THE TRANSITION. IT IS UNDERWAY, WE WILL TAKE PLACE, BUT IT MUST BE DONE IN SUCH A WAY THAT WE DO NOT RUPTURE RELATIONSHIPS WITH THOSE PEOPLE WE HAVE TO RELY UPON IN ORDER TO GET US BACK TO THE MAJORITY. JOE: AND I KNOW YOU ARE GOING TO SPEND THE NEXT TWO YEARS LOOKING TO ELEVATE HAKEEM JEFFRIES TO BE THE NEXT SPEAKER OF THE HOUSE. I WANDER IN THIS SESSION, IF YOU WILL VOTE FOR KEVIN MCCARTHY OR HELP TO SEE OTHER DEMOCRATS VOTE FOR KEVIN MCCARTHY A SPEAKER. REP. CLYBURN: I THINK THAT REMAINS TO BE SEEN. WE DO NOT KNOW WHAT WILL HAPPEN ON THE OTHER SIDE AND THESE HYPOTHETICALS CAN GET YOU IN A LOT OF TROUBLE AND DOING -- DURING THIS HOLIDAY SEASON, I ' M TRYING TO STAY OUT OF TROUBLE AND STAY FOCUSED ON WHAT MAKES ME THANKFUL. JOE: WHAT ' S ARE GOING TO BE LIKE SERVING WITH REPRESENTATIVES PELOSI AND HOYER AS RANK-AND-FILE MEMBERS OF THE U.S. HOUSE? YOU WILL OUTRANK BOTH OF THEM POTENTIALLY, CONGRESSMAN. REP. CLYBURN: NO I WON ' T, EITHER. THEY ARE SO MY SUPERIORS, I WILL STILL RECOGNIZE THAT. I ' M JUST TRYING TO MAKE SURE THAT WE DO NOT DO ANYTHING THAT WILL ALLOW THESE WEDGE ISSUES THAT HAVE BEEN A PROBLEM FOR US IN THE PAST NOT TO BE A PROBLEM GOING FORWARD AND THAT IS WHY I HAVE BEEN MEETING WITH HAKEEM JEFFRIES AND PETE AT LOWER AND OTHERS AND WE LOOK FORWARD TO WITH OUR MESSAGING, WE ARE LOOKING TO WORK TOGETHER TO ENSURE THIS TRANSITION IS SEAMLESS. WE ' RE NOT GOING TO TRY TO SATISFY THE HEADLINE SEEKERS, WE ARE NOT GOING TO TRY TO DO WHAT IS NECESSARY TO GET ON TWITTER -- TO GET KIDS ON TWITTER, WE ARE GOING TO TRY TO KEEP TOGETHER AND KEEP FOCUSED ON THE MORE PERFECT UNION. JOE: I WILL TELL YOU WHAT, CONGRESSMAN, YOU ARE WELL AWARE YOU ARE CREDITED WITH ESSENTIALLY SAVING JOE BIDEN ' S PRESIDENTIAL CAMPAIGN IN 2020 WHEN HE GOT TO SOUTH CAROLINA. DO YOU WANT TO SEE HIM RUN AGAIN? > > ABSOLUTELY. I WANT TO SEE HIM RUN AGAIN. I TOLD HIM THAT BUT THAT DECISION IS UP TO HIM AND HIS FAMILY. I THINK IF HE LEARNED ANYTHING IN THE SELECTION THIS NOVAK ' S -- NOVEMBER, PEOPLE OF JOE BIDEN ' S APPROACH AND THEY ARE IN LOVE WITH HIS AGENDA. THAT IS WHY WE WERE ABLE TO DEFY ALL ODDS UNTIL WHAT WE WERE ABLE TO DO IN DEFYING CONVENTIONAL WISDOM. JOE: WHY ARE HIS APPROVAL RATINGS SO LOW IF THAT IS THE CASE? I JUST HAVE TO ASK YOU THAT AND I REALIZED DEMOCRATS OUTPERFORMED EXPECTATIONS IN THE MIDTERM ELECTIONS. BUT SHOULDN ' T JOE BIDEN BE REWARDED WITH A HIGHER APPROVAL RATING OF PEOPLE ARE IN LOVE WITH HIS POLICIES? REP. CLYBURN: YES. THAT MAY BE THE CASE BUT LOOK AT THIS, HE IS TRYING TO DO THINGS THAT HAVE NEVER BEEN DONE. PEOPLE GET ENAMORED IN STYLE BUT I WOULD SAY TO THEM THERE IS NO SUBSTITUTE FOR SUBSTANCE, AND ON SUBSTANCE, JOE BIDEN IS EXACTLY WHAT WE NEED. FOR THOSE PEOPLE WHO ARE MORE ENAMORED WITH STYLE, WITH HIGH SOUNDING SPEECHES AND THAT SORT OF THING, THEY ARE NOT GOING TO BE SATISFIED. WHEN THEY LOOK AT THEIR BANK ACCOUNTS, THEY LOOK AT WHAT IS HAPPENING WITH THEIR FAMILIES AND IN THEIR COMMUNITIES, THEY ARE VERY PLEASED AND THAT DOESN ' T SHOW TOO MUCH AND POINTED. I THINK A LOT ABOUT MY FAVORITE PRESIDENT OF ALL TIMES, HARRY TRUMAN. NO MATTER ABOUT APPROVAL RATINGS TO HARRY TRUMAN. IF PEOPLE LOOK BACK, THEY CALLED HIM ONE OF THE TOP 10 IF NOT THE TOP FIVE PRESIDENTS OF ALL TIMES. THAT IS BECAUSE HE TOOK THE NECESSARY STEPS TO DO WHAT WAS NEEDED TO KEEP THIS COUNTRY TOGETHER, TO BRING DECISIONS INTO THE FOUR THAT WERE UNPOPULAR AT THE TIME BUT OVER TIME HAVE PROVEN TO BE EXACTLY WHAT THE COUNTRY NEEDED. THAT WILL BE THE CASE HERE WITH JOE BIDEN. JOE: SOME OF THE MOST FORCEFUL COMMENTS WE HAVE HEARD SUPPORTING ANOTHER RUN FOR JOE BIDEN, MANY THANKS YOU, CONGRESSMAN, AND I WISH YOU A HAPPY THANKSGIVING. JIM CLYBURN, HOUSE MAJORITY WHIP THUS ON BALANCE OF POWER. CONSUMER SENTIMENT SLIGHTLY HIGHER THAN EXPECTED AND THE UNIVERSITY OF MICHIGAN SURVEY OUT THIS MORNING. SOME CONCERNS ABOUT INFLATION. WE WILL TALK ABOUT THAT WITH MARK ZANDI OF MOODY ' S ANALYTICS NEXT. THIS IS BALANCE OF POWER BLOOMBERG TV AND RADIO. ♪ JOE: THIS IS " BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. I ' M JOE MATHIEU. U.S. CONSUMERS ARE DIALING BACK SHORT-TERM INFLATION EXPECTATIONS ACCORDING TO THE LATEST UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT REPORT OUT A SHORT TIME AGO AND FOR MORE ON THE LATEST ECONOMIC DATA AND WHAT THIS MIGHT MEAN FOR THE FED, WE WANT TO TALK WITH MARK ZANDI, IT IS GREAT TO SEE YOU. THANKS FOR BEING HERE ON THIS DAY BEFORE THE HOLIDAY. INTERESTING IN THIS PIECE, WE CAN TALK ABOUT THE HEADLINE NUMBER BUT WHEN YOU LOOK INSIDE, ABOUT 40% OF CONSUMERS SAY INFLATION IS ERODING THEIR BUYING POWER. HOW MUCH OF A CONCERN IS THIS FOR YOU INTO THE HOLIDAY SHOPPING SEASON? > > WHILE IT IS THE CONCERN, INFLATION IS A BIG DEAL. CPI INFLATION CONSUMER PLACE INFLATION YEAR-OVER-YEAR IN OCTOBER WAS 7.7%. THE FED ' S TARGET IS CLOSER TO 2% SO THAT GIVES YOU A SENSE OF THE ISSUE, JUST TO MAKE THAT POINT EVEN MORE CONCRETE. THE TYPICAL AMERICAN HOUSEHOLD THAT MAKES THE TYPICAL INCOME IS SHELLING OUT $433 MORE PER MONTH TODAY COMPARED TO A YEAR AGO TO BUY THE SAME GOODS AND SERVICES. SO GIVEN THAT, IT IS HARD TO NOT EXPECT THE CONSUMERS HOUSEHOLDS TO BE RELATIVELY PESSIMISTIC AND THAT IS WHAT WE SAW IN THESE NUMBERS. JOE: ON BOTH ENDS OF THE SCALE, LOWER AND HIGHER INCOME CONSUMERS SAY INFLATION IS NOT JUST EATING INTO THEIR BUYING POWER BUT IMPACTING THEIR LIVING STANDARDS. WHAT DOES THAT TELL US HISTORICALLY WHEN YOU SEE THOSE WELL-OFF AND NOT, BOTH SINGING THE SAME SONG? > > IT ' S ONE REASON WHY CONSUMERS ARE BECOMING MORE CAUTIOUS IN SPENDING, CONSUMER SPINNING GROWTH IS SLOWING. FORTUNATELY THEY ' RE NOT PACKING IT IN, THEY ARE NOT CUTTING SPENDING, AT LEAST NOT ACROSS ALL CONSUMERS. IF THEY DID, THAT WOULD BE RECESSION. THAT IS NOT WHAT THEY ' RE DOING. THEY DO HAVE EXCESS SAVINGS. PARTICULARLY MIDDLE INCOME AND HIGH INCOME HOUSEHOLDS DO A LOT OF SAVINGS DURING THE PANDEMIC FOR A LOT OF REASONS AND THEY ARE DRAWING THAT DOWN TO SUPPLEMENT THEIR PURCHASING POWER NOW THAT THEY ARE GETTING A BAHA ' I INFLATION. LOW INCOME HOUSEHOLD, THIS IS WORRISOME, ARE TAKING ON MORE CREDIT CARD DEBT, MORE UNSECURED PERSONAL LOANS TO SUPPLEMENT THEIR INCOME. SO FAR, THEY ARE NOT RUNNING INTO THE BUNKER. THEY MAY HAVE THEIR HAND ON THE BUNKER BUT THEY ARE NOT RUNNING INTO THE BUNKER. THAT IS KEY TO AVOID A RECESSION. JOE: THEIR HAND ON THE BUNKER DOOR, I ' M SURE YOU ARE WAITING FOR FED MINUTES LIKE EVERYONE ELSE TO A CLOCK P.M. EASTERN TIME, MARK ZANDI, DO YOU HAVE A SENSE OF WHAT THE FED ' S RATE WILL BE? HOW DO YOU FIGURE THAT? MARK: CHAIR POWELL DID TELL US IT WOULD BE HIGHER THAN WHAT THEY TOLD US BACK IN SEPTEMBER WHEN THEY RELEASED THAT WITH THEIR FORECAST. I THINK BACK THEN THE TERMINAL RATE WAS SOMEWHERE BETWEEN 4.5 AND 4.3 5 -- 4.5 AND 4.75. MY SENSE IS THAT IT GOES TO FIVE AND 5.5. THAT WOULD BE CONSISTENT WITH MARKET EXPECTATIONS AND WHAT INVESTORS SEEM TO BE DISCOUNTING, AND INVESTED IN STOCK AS IS, CREDIT SPREAD, MORTGAGE RATE, VALUE OF THE DOLLAR. IF THAT IS WHAT IT IS, I DO NOT THINK WE WILL SEE BIG CHANGES AS A RESULT. THEY WILL NOT AROUSE THAT WILL RELEASE -- NOT ANNOUNCE THAT ALL RELEASE PROJECTIONS UNTIL NEXT MONTH BUT HE INDICATED CLEARLY THE TERMINAL RATE, THE HIGHEST RATE DURING THE CYCLE WILL BE HIGHER THAN IT WAS LAST TIME THEY PRODUCED A FORECAST. JOE: THERE HAS BEEN A LOT OF FED SPEAK AND A LOT OF OFFICIALS TALKED ABOUT THE LAG EFFECTIVE VOLUNTARY POLICY. ARE THOSE LEGS SHORTER NOWADAYS AND IT BRINGS US TO THE CONVERSATION OF OVERSHOOTING. WHAT WILL THIS LOOK LIKE THE BEGINNING OF NEXT YEAR? > > I DON ' T THINK THE LEGS ARE SHORTER. I THINK THEY ARE STILL LONG. IT TAKES TIME. IT SHOWS UP FAST IN SOME PLACES LIKE THE HOUSING MARKET, OBVIOUSLY THAT IS THE MOST RE-SENSITIVE AREA OF THE ECONOMY. IF YOU WANT TO BUY HOME YOU HAVE TO GET A MORTGAGE. IT SHOWS UP IN STOCK PRICES RIGHT AWAY, ALL THOSE FINANCIAL CONDITIONS WE TALKED ABOUT, BUT IT TAKES TIME TO FLOW THROUGH TO THE ECONOMY. WHEN I SEE THAT REALLY THE JOB MARKET IT TAKES TIME. THINKING ABOUT THESE LARGE CORPORATIONS LIKE THE MOODY ' S ORGANIZATION, SIX TO 12 MONTHS AGO EVERYONE WAS HIRING HAND OVER FIST OF UNFILLED POSITIONS AT RECORD HIGHS. YOU JUST DON ' T TURN THAT SHIP AROUND QUICKLY. I THINK WE WILL SEE -- WE HAVE SEEN MODERATION IN JOB THEN WE WILL SEE MEANINGFULLY MORE MODERATION GOING FORWARD. IT WILL TAKE TIME. WE WILL NOT SEE THE FULL EFFECTS OF WHAT THE FED HAS DONE FOR WELL INTO NEXT YEAR. I THINK THAT IS WHY IT IS IMPORTANT THAT ONCE THEY EXECUTE ON WHAT THEY HAVE ARTICULATED IN THE MARKETS SAY FIVE TO 5.2 5%, THEY STOP AND LOOK AROUND AND SEE WHAT EFFECT IT IS HAVING. JOE: TO THE WORST AMERICAN RECESSIONS TOOK PLACE DURING PRESIDENT RONALD REAGAN ' S FIRST TERM. BY 1984, HE WAS RUNNING AND ONE IN HISTORIC LANDSLIDE REELECTION UNDER THE SLOGAN AMERICA IN THE MORNING, IT IS A MORNING IN AMERICA AGAIN IS THE ACTUAL SLOGAN OF COURSE. CAN JOE BIDEN USE THE SAME MODEL? IS THAT WHAT IT LOOKS LIKE WHEN HE IS WALKING UP ON A POTENTIAL SECOND TERM? > > IT ' S POSSIBLE. IT DOES FOR LIKE THE MOMENT OF TRUTH HERE IS DEAD AHEAD OF US ON INFLATION. THE FED WILL DO EVERYTHING AND CAN TO GET INFLATION IN AND THEY WILL SUCCEED ONE WAY OR ANOTHER SO I THINK 2023 WILL BE A PRETTY TOUGH YEAR, CERTAINLY WE WILL SEE JOB GROWTH SLOW, UNEMPLOYMENT WILL RISE, BUT BY THE TIME FOLKS ARE RUNNING FOR REELECTION AGAIN, THAT IS SORT OF THE SPRING/SUMMER 2024. INFLATION SHOULD BE DONE IN ECONOMY SHOULD BE COMING BACK AND THAT IS KIND OF SORTA WHAT REAGAN HAD ADA ' S BACK. JOE: WE ' LL PULL THE STATEMENT FOR YOU. HAPPY THANKSGIVING. MARK: OK. JOE: HAPPY TURKEY. COMING UP NEXT, WE GET A CHECK ON THE MARKETS WITH KRITI GUPTA. THIS IS " BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. ♪ THIS IS " BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. JOE: -- JOE: THIS IS " BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. I AM JOE MATHIEU IN FOR DAVID WESTIN. WE TURN TO THE MARKETS AND GET AN UPDATE WITH KRITI GUPTA. A LOT OF DATA, WE HAVE BEEN TALKING ABOUT MUCH OF IT HOW IT HAS IN PLAYING ON WALL STREET. KRITI: GREEN ON THE SCREEN BUT A LITTLE BIT OF THIS WILL BE LACK OF PARTICIPATION. CHECK OUT THE S & P 500 COME ON LOW VOLUME BUT RALLYING. ON INTRADAY BASIS, YOU ARE STARTING TO SEE TECHNICAL MOVES. WE CLOSED ABOVE 4000 ON THE S & P 500 YESTERDAY SO TO HOLD IT, YOU WOULD NEED A SINCERE CATALYST, NEVERTHELESS A LITTLE THEY HAVE -- A LITTLE BIT OF FADING ONLY TO BOUNCE OFF THE 4000 5000 MARK. THAT WILL BE A KEY TECHNICAL LEVEL BUT VOLUME IS 35% UNDER ITS 20 DAY AVERAGE. YOU SPECIFICALLY MENTIONED THE IDEA OF ECO-DATA AND I THINK THIS IS SIGNIFICANT. IF YOU LOOK AT THE S & P 500, THE MOVERS AND SHAKERS UNDER THE HOOD, A LOT OF THIS IS DEFENSIVE WHICH IS WHERE YOU SEE THE OUTPERFORMANCE COMING FROM THE NASDAQ FOR EXAMPLE. THE RUSSELL 2000 AND THE RED, DOUBT AND THE RED, MORE CYCLICAL STOCKS ARE NOT PERFORMING WELL AND IT COMES DOWN TO THE PMI ' S, SHOWING THE UNITED STATES IS STARTING TO WEAKEN SPECIFICALLY IN THE MANUFACTURING SECTOR. THAT ' S IMPORTANT BECAUSE MANUFACTURING HAS BECOME THIS I WANT TO SAY BEACON OF HOPE ON MOST FOR THE AMERICAN ECONOMY AND IT ONLY MAKES UP 20% OF THE AMERICAN ECONOMY. THE REST IS SERVICES OR GOODS BUT THIS IS SIGNIFICANT BECAUSE IT IS THE ONE KIND OF RAMP SUNSHINE IN AN OTHERWISE SLOWING ECONOMY. EVEN THAT IS COMING TO A LITTLE HALT. JOE: I ' M COMPELLED TO ASK ABOUT OIL PRICES/ENERGY PRICES AHEAD OF THE BEGINNING OF THE DRIVING HOLIDAY SEASON. THIS IS A BIG ONE WITH THANKSGIVING AND THE EU IS PROPOSING A SOFTER PRICE CAP ON RUSSIAN OIL. HOW IS IT MOVING THE MARKET? KRITI: WE ARE LOOKING AT BRENT CRUDE ABOUT $84 PER BARREL. IT IS INTERESTING BECAUSE THIS IS COMING ON THE HEELS OF NEWS COMING OUT OF SAUDI ARABIA AND OPEC. THERE ARE RUMORS THEY ARE NOW STARTING TO LOOK AT AND CONSIDER HIKING OIL PRODUCTION GOING INTO THE DECEMBER 4 OPEC MEETING. SAUDI ARABIA SPECIFICALLY DENIED THAT BUT FOR THIS PRICE CAP, IF YOU LOOK AT WHERE RUSSIAN OIL IS TRADING, AT A DISCOUNT RELATIVE TO THE INTERNATIONAL BENCHMARK, WE ARE LOOKING AT $60 APPROXIMATELY ACCORDING TO JAVIER, OUR BLOOMBERG OPINION COLUMNIST. IT ' S NOT THAT BIG OF A CHANGE IN PRICE CAP AREA SOMETHING TO KEEP IN MIND MOVING AHEAD. JOE: KRITI GUPTA, THANKS. YOU CAN CATCH HER SHORTLY AND THE 1:00 P.M. EASTERN HOUR ON " BLOOMBERG MARKETS. " COMING UP, RUSSIAN MISSILE STRIKES REPORTEDLY DISCONNECT THREE NUCLEAR POWER PLANTS FROM THE UKRAINIAN GRID. WE WILL TALK ABOUT A NEXT WITH JANE HARTMAN. THIS IS BLOOMBERG. ♪ JOE: -- MARK: KEEPING YOU UP-TO-DATE FROM NEWS FROM AROUND THE WORLD, HERE THE FIRST WORD. IN CHESAPEAKE, VIRGINIA, POLICE A MAN WHO OPENED FIRE IN A WALMART WAS A COMPANY OF LEE. SIX PEOPLE WERE KILLED TUESDAY NIGHT AND FOR OTHERS IN THE HOSPITAL. THE SUSPECTS BODY WAS FOUND IN THE STORE. > > THE SUSPECT IS DEAD FROM WHAT WE BELIEVE IS A SELF-INFLICTED GUNSHOT WOUND. THE CHESAPEAKE POLICE SWAT TEAM EXECUTED THE SEARCH WARRANT AT THE SUSPECTS RESIDENCE AND WITH THE HELP OF THE VIRGINIA STATE POLICE CLEAR THE HOUSE. WE HAVE REASON TO BELIEVE THERE IS NO RISK TO THE PUBLIC AT THIS TIME. MARK: THE SHOOTER WAS A MANAGER WHO OPENED FIRE ON EMPLOYEES IN THE BREAK ROOM. THERE IS A SIGN OF COOLING IN THE U.S. LABOR MARKET, APPLICATIONS FOR UNAPPOINTED BENEFITS ROSE LAST WEEK TO A THREE MONTH HIGH. INITIAL JOBLESS CLAIMS ROSE FROM 17,000 TO 200 40,000, HIGHER THAN THE MEDIAN ESTIMATE. IN THE PAST, RISING JOBLESS CLAIMS HAVE BEEN WARNING INDICATORS OF RECESSIONS. IN UKRAINE, THE CAPITAL CITY KEY WAS RATTLED BY A SERIES OF EXPLOSIVE NAMES TODAY THAT COINCIDED WITH REPORTS OF A NEW BARRAGE OF RUSSIAN MISSILE ATTACKS ACROSS THE COUNTRY. UKRAINE ' S GRID OPERATOR HAS ENACTED EMERGENCY POWER CUTS. THE RUSSIAN MILITARY HAS BEEN TARGETING UKRAINE ' S ENERGY INFRASTRUCTURE. THE TOP JUDGES IN THE U.K. HAVE THROWN OUT SCOTLAND ' S LATEST BID FOR INDEPENDENCE. THE U.K. SUPREME COURT RULED UNANIMOUSLY A SECOND REFERENDUM WOULD HAVE TO BE PROVED BY THE BRITISH GOVERNMENT. THAT WAS NICOLA STURGEON ' S PLAN FOR A VOTE NEXT YEAR. GLOBAL NEWS, 24 HOURS A DAY, ON AIR AND ON " BLOOMBERG QUICKTAKE, " POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN OVER 120 COUNTRIES. I AM MARK CRUMPTON. THIS IS BLOOMBERG. JOE: THANK YOU. AS WE TURN TO JANE HARTMAN, FORMER DEMOCRATIC CONGRESSMAN NOW CHAIR OF THE FREEDOM HOUSE BOARD OF TRUSTEES, AUTHOR OF THE MOST RECENTLY AT LEAST INSANITY DEFENSE, WHY OUR FAILURE TO CONFRONT HARD NATIONAL SECURITY PROBLEMS MAKES US LESS SAFE. JANE, WELCOME BACK. RUSSIAN CHILLING CONTINUES ACROSS UKRAINE WHERE THERE IS TERRIBLY TRAGIC NEWS TODAY AS RUSSIA APPARENTLY HIT A MATERNITY WARD WITH MISSILES LEAVING AT LEAST ONE NEWBORN BABY DEAD. WE KNOW THIS COULD END MAY WELL GET WORSE THIS WINTER BUT THERE IS GROWING PUSHBACK ON SPENDING MORE MONEY TO HELP UKRAINE ON CAPITOL HILL. WHAT WILL A REPUBLICAN MAJORITY MEAN FOR THIS WAR EFFORT IN THE U.S.? JANE: HELLO. LET ME START WITH THE FACT THAT TODAY IS THE 60TH ANNIVERSARY OF THE ASSASSINATION OF JOHN KENNEDY WHEN HE WAS PRESIDENT AND HE IS CREDITED, HIS BIG MOMENT, WITH RESOLVING THE CUBAN MISSILE CRISIS WHICH IS THE CLOSEST WE HAVE EVER CAME TO NUCLEAR WAR. WHEN I HEAR WHAT YOU JUST REPORTED, I WORRY A LOT, NOT THAT THIS IS EXACTLY THE SAME CRISIS BUT ACCIDENTALLY, WHICH MAY NOT PHASE THE RUSSIANS, WE COULD HAVE REPRIEVE IN A DIFFERENT FORM. WHAT TO I THINK ABOUT CONGRESS? I WAS JUST AT THE HALIFAX SECURITY FORM OVER LAST WEEKEND AND SENIOR REPUBLICAN MEMBERS OF CONGRESS IN BOTH PARTIES ATTENDED AND THERE IS NO -- THIS MAY BE CAMPAIGN RHETORIC THERE IS NO FLINCHING ABOUT THE NEED FOR ONGOING AID TO UKRAINE. IT IS NOT JUST ABOUT UKRAINE, AS IMPORTANT AS THAT IS, IT IS ABOUT SETTING UP A FRONTIER AGAINST RUSSIAN AGGRESSION TO THE WEST INCLUDING THIS. THEY DO NOT HONOR AGREEMENTS SO LET ' S NOT TALK ABOUT NEGOTIATION AREA DID LET ' S TALK ABOUT SOME WAY TO ACHIEVE WHAT THE UKRAINIANS DEFINE AND HOPEFULLY WE AGREE OVER THE RUSSIAN ILLEGAL AGGRESSION. JOE: THAT INCLUDES DEFENDING OURSELVES. I KNOW THERE IS A CALL FOR MORE ADVANCED MISSILE DEFENSE SYSTEMS TO HELP UKRAINE CLOSE THE SKIES BUT NATO IS TESTING AIR AND MISSILE DEFENSE SYSTEMS IN ROMANIA. AFTER WHAT WE SAW WHAT HAPPENED IN POLAND LAST WEEK WITH THE MISSILE THAT WAS KNOCKED DOWN, I GUESS A PROJECT OUT FROM UKRAINE ' S OWN DEFENSE SYSTEM, IS LIKELY WILL LANDED IN POLAND. ARE WE DOING ENOUGH FOR FORCE PROTECTION? WE HAVE THOUSANDS OF AMERICAN TROOPS ON THE BORDER. JANE: WE ARE AUGMENTING FORCE PROTECTION. WE HAVE 100,000 U.S. TROOPS IN EUROPE. I THINK THAT IS THE RIGHT NUMBER. WHATEVER IT IS, WE ARE ROBUSTLY ASSERTING OUR PARTNERSHIP WITH NATO. WE ARE CLEAR ABOUT INVOKING ARTICLE FIVE. ONE OF THE SPEAKERS AT HALIFAX LAST WEEKEND WAS LLOYD AUSTIN, OUR SECRETARY OF DEFENSE, AND HE GOT THE PRIZE FOR THE MOST POWERFUL SPEECH AND IT WAS SPECIFICALLY ABOUT THIS. NO FLINCHING. THIS IS A FRONTIER THAT CANNOT BE CROSSED. JOE: THERE ' S A LOT OF WORRY ABOUT THIS WINTER IN UKRAINE AND FOR A LOT OF DIFFERENT REASONS HERE, NOT ONLY THE CIVILIAN POPULATION WITHOUT POWER AND HEAT BUT RUSSIA ' S GAS PROBLEM IS NOW KIND OF UPPING THE ANTE, ACCUSING UKRAINE OF HOARDING GAS TRAVELING THROUGH PIPELINES, A CLAIM THAT HAS BEEN DEBUNKS. RUSSIA IS USING THIS AS A FALSE PRETEXT TO THREATEN CUTTING OFF GAS FROM EUROPE. WHAT CAN WE DO ABOUT THIS IN THE MONTHS AHEAD? JANE: WE CAN WEAN OURSELVES OR EUROPE IN PARTICULAR, I THINK WE HAVE DONE THIS, FROM DEPENDENCE ON RUSSIAN OIL AND GAS AND EUROPE IS DOING A GREAT JOB AS THE COLD WINTER APPROACHES. IT IS SO SAD TO SEE IN UKRAINE THEY MAY HAVE TO GO BACK TO A COUPLE CITIES BECAUSE THEY DO NOT HAVE THE INFRASTRUCTURE, ESPECIALLY THE ENERGY INFRASTRUCTURE, TO PROVIDE HEAT TO THEIR PEOPLE WHO WILL FREEZE TO DEATH. THAT IS WHAT RUSSIA WANTS. CAN YOU IMAGINE HOW CRUEL IT IS TO KILL A NEW BABY IN A MATERNITY WARD, SOMETHING YOU JUST MENTIONED? AND HOW THE WHOLE IDEA NOW BUILDING MORE DRONES AND RUSSIA ' S DESIGNED SPECIFICALLY TO HURT THE UKRAINIAN PUBLIC. IT IS A TRULY CATASTROPHIC SITUATION AND ONE THAT WE HAVE NOT SEEN IN RECENT YEARS. JOE: WHEN YOU CONSIDER THE PROSPECT OF THE WINTER, THE INHUMANITY, ATTACKS ON CIVILIAN INFRASTRUCTURE, PEOPLE FREEZING TO DEATH AS YOU SUGGESTED, HOW DO WE SIT HERE AND WATCH THIS? I KNOW THIS IS NOT AN EASY QUESTION TO ANSWER AND I KNOW JOE BIDEN PROMISED NOT TO PUT AMERICAN OR NATO FORCES ON DIRECT CONFLICT WITH RUSSIA BUT THAT IS BASICALLY WHAT WE ARE TALKING ABOUT, RIGHT? SEND CHECKS AND WEAPONS OVER AND WATCH. JANE: I THINK THAT ' S A LITTLE UNFAIR. WE ARE NOT WATCHING. AMERICAN HUMANITARIAN AID IS FLOWING IN. WE HAVE AMERICANS ON THE GROUND IN UKRAINE NOT JUST OBSERVING, WHICH IS A GOOD THING, THANK YOU FREE PRESS, BUT ALSO HELPING THESE HOLLOW POPULATIONS IN ALL OF THESE CITIES. A BIDEN IS DOING IS BEING CAREFUL. ANOTHER LAND WAR, WE DESCENDED TWO IN THE MIDDLE EAST AFTER TWO DECADES AND CERTAINLY DID NOT END WELL. HERE WE ARE TRYING TO, IT SEEMS TO ME, LIMIT THE CONTOURS OF THIS WAR BY LINING UP EUROPE AND COUNTRIES AROUND THE WORLD TO BE A UNITED FRONT AGAINST THE ILLEGAL RUSSIAN AGGRESSION. I GIVE EVERYONE HIGH MARKS, NOT JUST BIDEN BUT I THINK THERE IS BIPARTISAN SUPPORT FOR KEEPING ON, KEEPING ON. JOE: I THOUGHT YOU MIGHT SAY INTELLIGENCE IS THE ANSWER. OUR INTELLIGENCE IN THE U.S. IS MORE VALUABLE THAN SOME WEAPON SYSTEMS, WOULD YOU NOT AGREE? JANE: I WOULD SAY IT IS THE SECOND MOST VALUABLE TOOL. IT HAS BEEN SPECTACULAR IN OUR DECISION TO DECLASSIFY A LOT OF THIS INTELLIGENCE SO THE WHOLE WORLD KNOWS WHAT IS GOING ON. I THOUGHT THAT WAS A SPECTACULARLY GOOD DECISION. THE MOST IMPORTANT WEAPON IS THE UKRAINIAN HEART. YOU SHOULD HAVE HEARD ZELENSKYY AND HIS SENIOR LEADERSHIP ON VIDEO IN HALIFAX LAST WEEKEND TALKING ABOUT NOT ONLY WHAT THEY ARE GOING THROUGH BUT THE FACT THEY WILL WIN AND THEY ARE PREPARED FOR ANYTHING AND THIS IS THEIR HOMELAND. AND IT IS THEIR HOMELAND. UNDERSTAND ONE OTHER THING, IN 1994, UKRAINE GAVE UP NUCLEAR WEAPONS TO REMIND US, COME HEARTENING BACK TO JOHN KENNEDY AND WHAT HE DID, THEY GAVE UP NUCLEAR WEAPONS IN EXCHANGE FOR RUSSIA AGREEMENT THAT IT WOULD RESPECT THEIR NATIONAL SOVEREIGNTY. NOW LOOKING BACK IF THEY HAD, MAYBE WE HAD NOT BEEN IN THIS PICTURE BUT THE POINT IS YOU CANNOT TRUST RUSSIA AND YOU CAN TRUST UKRAINE AND UKRAINE IS FIGHTING FOR ALL OF US. JOE: JANE HARMAN, THANK YOU FOR POINTING US TO HISTORY HERE TO HELP HER UNDERSTAND THIS TIME WE ARE IN. HAPPY THANKSGIVING AND THANKS FOR TALKING WITH US. JOE: YOU -- JANE: YOU TOO. JOE: COMING UP, WE GO INSIDE OF THE ARROW SPACE MUSEUM WITH HIGHLIGHTS FOR MY CONVERSATION WITH THE MUSEUM ' S EXECUTIVE DIRECTOR COMING UP NEXT ON BALANCE OF POWER ON BLOOMBERG TV AND RADIO. ♪ JOE: THIS IS " BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. I ' M JOE MATHIEU. THE SMITHSONIAN NATIONAL SPACE MUSEUM HAS JUST REOPENED ON THE NATIONAL MALL IN WASHINGTON, D.C. HAVING BEEN COMPLETELY SHUT DOWN FOR MASSIVE RENOVATIONS, ABOUT HALF THE JOB IS DONE WITH NEW EXHIBITS AND EMPHASIS ON THE DIVERSE VOICES THAT HAVE HELPED ADVANCE AIR AND SPACE EXPLORATION. I SAT DOWN WITH THE DIRECTOR, CHRISTOPHER BROWN, AARON SPACE MUSEUM EXECUTIVE DIRECTOR AND FORMER TOP GUN PILOTS, TO LEARN MORE ABOUT THE PROJECT AND GET AN UP-CLOSE LOOK AT THE JOB UNDERWAY. IT ' S KNOWN AS A SANCTUARY, ICONIC DISPLAYS, SENSE OF HISTORY THAT IT BRINGS. WHAT IS SCARIER, LANDING AN F-14 ON THE DECK OF AN AIRCRAFT CARRIER AT NIGHT OR RE-ENVISIONING ONE OF THE MOST BUSY MUSEUMS IN THE WORLD? CHRISTOPHER: I THINK THE BIGGER TASK QUITE FRANKLY IS RE-ENVISIONING THIS NATIONAL TREASURE FOR THE FUTURE. WE KNOW ITS IMPACT, YOU SAID IT INFLUENCED YOU AND I CAME HERE IN 1977, I WAS 19 YEARS OLD. I WAS REALLY STRUCK BY THE D.C. THREE ABOVE US BECAUSE I WAS AN AIRCRAFT THAT I HAD FLOAT IN AS A CHILD AND THAT LED TO MY PROFESSIONAL LIFE IN AVIATION. NOT AS SCARY AS LANDING A NIGHT ON A SHIP BUT VERY IMPORTANT. CHRISTOPHER: THE LEVEL OF STRESS MIGHT BE APPROACHING THAT. IT IS INTERESTING TO THINK THIS WING HAS BEEN CLOSED SINCE BEFORE COVID. 2018. HE SAID WHEN THEY REOPENED RECENTLY THE REAL MEASURE OF SUCCESS WILL BE VISITORS RETURN HOME AND SAY YOU MUST SEE THIS. IS THAT ALREADY HAPPENING? CHRISTOPHER: ABSOLUTELY. WE ARE GETTING 5000 VISITORS PER DAY AND WE HAVE HAD GOOD FEEDBACK BOTH THROUGH THE MEDIA AND THROUGH OUR VISITORS. I THINK PART OF IT IS BECAUSE ALMOST 50% OF THE ARTIFACTS IN THE MUSEUM TODAY ARE HERE FOR THE FIRST TIME AND WE ARE ABLE TO EXPAND THE STORYTELLING IN THE WAY THE OTHER MEASURE OF SUCCESS IS WE HOPE EVERYBODY COMING INTO THIS MUSEUM, HOWEVER THEY PRESENT, WHATEVER THEY LOOK LIKE, WHEREVER THEY COME FROM, THEY WILL BE ABLE TO SEE THEMSELVES IN THE STORIES AND ARTIFACTS JUST AS I DEAD IN 19 TO 77. JOE: IT ' S NOT LOST -- IN 1977. JOE: IT ' S NOT LOST ON ME THAT THIS IS A PIECE OF HISTORY LIKE OTHER EXHIBITS ARE. IT SPEAKS TO THE VISION YOU HAVE IN CONNECTING FANTASY WITH INNOVATION. WHAT IS THAT LESSON FOR YOUNG PEOPLE? CHRISTOPHER: IT STARTS WITH AN IDEA AND THERE IS THE MOMENT OF INSPIRATION AND A CAN COME ANY NUMBER OF WAYS. IF YOU GO INTO OUR DESTINATION GALLERY OR RETELL THE STORY OF APOLLO, YOU WILL SEE GAMES AND SOME OF THE THINGS THE YOUNG ASTRONAUTS WERE INFLUENCED BY AS CHILDREN. SO WE KNOW THE ICONIC VALUE OR INFLUENTIAL VALUE OF THESE ARTIFACTS AND I ' VE TAKEN SOME HEAT FOR THE X WINGS. PEOPLE SAID IT HAS NEVER FLOWN, WHY IS IT IN THE SPACE MUSEUM? I REMIND FOLKS BUT WE HAVE 6000 PAINTINGS THAT NEVER FLEW SO IT IS A QUESTION OF MEETING OUR AUDIENCES WHERE THEY ARE. WHAT IS IT THAT CONNECTS TO THEM? THAT RESONATES? WE KNOW THE POWER OF THE X WING FIGHTER DOES THAT FOR A LOT OF OUR AUDIENCE. JOE: YOU HAVE A LOT OF COMPETITION FOR EYEBALLS AND INTEREST. YOU ARE TRYING TO APPEAL TO KIDS ON TIKTOK AND SOCIAL MEDIA AND HAVE THE ATTENTION SPAN OF A 10 SECOND VIDEO. I ' M GUESSING THIS ACTUALLY HELPS TO BRIDGE THE DIVIDE. CHRISTOPHER: IT DOES. I THINK WHAT WE REALLY HOLD DEAR AT THE SMITHSONIAN AND CERTAINLY AT THIS MUSEUM IS A COMMITMENT TO AUTHENTICITY AND ACCURACY. SO THAT WHEN YOU COME HERE, WHETHER IN PERSON OR VIRTUALLY, THIS IS THE REAL DEAL. SO SOMETIMES SOME OF THE OTHER MEDIA AND INFLUENCES IN OUR LIFE CANNOT LAY THAT CLAIM. IT IS IMPORTANT WE HELD TODAY BECAUSE IT IS NOT JUST THE ARTIFACTS AND HOW REAL THEY ARE AND AUTHENTIC, IT IS THE STORIES , THE PEOPLE STORIES BEHIND THEM. JOE: THERE ARE AMAZING STORIES ALL AROUND US INCLUDING THAT OF THE APOLLO MISSION, THE APOLLO 11 CAPSULE IS SOMETHING THAT REMINDS US OF THE HARSH ENVIRONMENT THAT IS SPACE, AS YOU AND I SIT HERE, AN ORION SPACE CAPSULE IS ORBITING THE MOON. HOW MUCH DO CURRENT EVENTS DRIVE YOUR VISION FOR THE MUSEUM? CHRISTOPHER: VERY MUCH SO. FOLKS OFTEN THINK OF MUSEUMS HAVING A RETROSPECTIVE LOOK SO IT BEGS THE QUESTION WHY IS -- WHY DO WE HAVE A CALORIE DEDICATED TO THE APOLLO MISSIONS? WHAT IS ITS RELEVANCE? OTHER THAN THE FACT IT WAS AN AMAZING STORY, THE PRESIDENT A FEW MONTHS AGO I THINK USED THE TERM MOONSHOT. WHAT DOES MOONSHOT MEAN TO A GENERATION TODAY THAT WAS NOT ALIVE DURING APOLLO? THOSE PEOPLE GOING INTO THE GALLERY TODAY WOULD NOT HAVE BEEN ALIVE TO SEE THE LAUNCHES IN THE SATURN FIVE ' S IN THE APOLLO ERA. I THINK THE RELEVANCE AND REASON WE TELL THAT STORY GETS DOWN TO FOUR ELEMENTS, ONE IS TO TAKE ON A BIG CHALLENGE AND SOLVE PROBLEMS YOU NEED A STRONG VISION, SOMETHING KENNEDY ARTICULATED. YOU NEED A COMMITMENT OF NATIONAL RESOURCE, 400,000 AMERICANS, MILLIONS OF DOLLARS WORKING ON THAT PROJECT. YOU NEED A TOLERANCE FOR RISK. YOU HAVE TO BE WILLING TO TAKE CHANCES. THEN YOU HAVE TO HAVE THAT INGENUITY I THINK IT ' S OFTEN UNDERESTIMATED. WHEN YOU PUT THOSE THINGS TOGETHER, WHAT THE APOLLO MISSIONS DEMONSTRATED IS YOU CAN DO INCREDIBLE THINGS. FAST FORWARD, HOW DOES THAT PLAY OUT WITH CLIMATE CHANGE AND CURING CANCER AND SOME OF THESE SEEMINGLY INTRACTABLE PROBLEMS? I WALK THROUGH THAT GALLERY AND SAY WE CAN SOLVE PROBLEM. JOE: A SEVEN-YEAR PROJECT I BELIEVE IN TOTAL? CHRISTOPHER: YES JOE: THIS IS A HUGE UNDERTAKING. DOES IT HAVE A PRICE TAG? CHRISTOPHER: IT DOES. THIS IS AN INVESTMENT BY THE CITIZENS OF THIS COUNTRY, THEIR TAXES PAID FOR $725 MILLION OF REBUILDING THIS BUILDING AS YOU NOTED EARLIER, HAD A LOT OF WEAR AND TEAR SINCE IT FIRST OPENED OVER FOUR YEARS AGO. IMPORTANTLY, THE ACTUAL GALLERIES, THE LOOK AND FEEL LIKE THIS GALLERY IS FINANCED PRIVATELY AND THROUGH OUR CORPORATE AND INDIVIDUAL BENEFACTORS, PEOPLE THAT HAVE TRUST IN US AND GIVEN US THEIR TREASURE, THEIR DONATIONS FELL -- FINISH THIS PROJECT. THAT EQUATES TO OVER $250 MILLION. JOE: $250 MILLION? SO YOU ARE A FULL-TIME FUNDRAISER? CHRISTOPHER: INDEED. I REMIND MYSELF THAT PEOPLE DON ' T GIVE TO ME TO GIVE TO THE MUSEUM AND THE STORIES WERE TELLING. -- THEY GET TO THE MUSEUM AND THE STORIES WE ARE TELLING. JOE: YOUR CAREER, THREE HUNDRED 15 TRIBES, 15 HUNDRED HOURS FLYING THE F-14 TOMCAT, THIS ICONIC FIGHTER PLANE THAT HAS ITS OWN CULT FOLLOWING NOW. HE WENT ON TO BE THE MANAGER OF DULLES AIRPORT, REAGAN NATIONAL AIRPORT, DIRECTOR HERE AT THE AIR AND SPACE MUSEUM BUT YOU HAVE SAID IN CONVERSATIONS THAT IN FLIGHT SCHOOL, YOU EXPERIENCED SOMETHING CALLED I BELIEVE IT IS A FLIGHT DOWN? CHRISTOPHER: ABSOLUTELY. JOE: YOU ACTUALLY FEEL THE EQUIVALENT OF A CERTAIN EXERCISE THAT YOU NEEDED TO PASS IN YOUR TRAINING. I WONDER HOW MUCH THAT INFLUENCED YOUR APPROACH TO YOUR CAREER OR TRAJECTORY AFTER THAT. CHRISTOPHER: IT IS VERY HUMBLING TO BE TOLD THAT YOU FAILED IN SOMETHING YOU ' VE WORKED HARD AT, BUT I THINK WHAT IT DOES IS IT IS A REAL TEST OF CHARACTER TO DECIDE HOW INVESTED ARE YOU IN WHAT IT IS YOU ARE DOING. WITH JUST EXPLORATION, APOLLO, THESE STORIES, THERE WAS FAILURE ALONG THE WAY AND YOU LEARNED FROM YOUR FAILURES. IT ' S ALWAYS IMPORTANT NOT TO REPEAT THE FAILURES BUT TO LEARN FROM THEM. TO THINK WE WILL DO INCREDIBLE THINGS EITHER AT A LEVEL LIKE THIS MUSEUM ARE LAND A PERSON ON THE MOON OR IN MY CASE LEARN TO FLYING AIRCRAFT ON AND OFF A CARRIER, FAILURE IS PART OF THE PROCESS. JOE: MY CONVERSATION WITH CHRISTOPHER BROWN, THE SMITHSONIAN NATIONAL AIR AND SPACE MUSEUM ' S EXECUTIVE DIRECTOR, FORMER TALK ON PILOT WHO, BY THE WAY, WAS THE DIRECTOR REAGAN NATIONAL AIRPORT ON 9/11. WE CHECK IN WITH UBER TECHNOLOGIES ED LUDLOW ON HOW THE PROTESTS AT APPLE ' S FOXCONN PLAN COULD IMPACT PRODUCTION. " BLOOMBERG SURVEILLANCE ♪ -- THIS IS THIS IS " BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. ♪ JOE: THIS IS " BALANCE OF POWER " ON BLOOMBERG TELEVISION AND RADIO. I AM JOE MATHIEU. HUNDREDS OF WORKERS AT APPLE ' S MAIN IPHONE MAKING PLANT IN CHINA CLASHED WITH SECURITY PERSONNEL AS TENSIONS BOILED OVER AN ALMOST MONTH OF TOUGH RESTRICTIONS INTENDED TO MITIGATE AN OUTBREAK OF COVID. JOINING US NOW IS ED LUDLOW WITH MORE ON THIS. THE VIDEO IS REMARKABLE HERE. WHAT THE HECK WENT ON OVER THERE? ED: OVERNIGHT HUNDREDS OF WORKERS ESSENTIALLY PROTESTED, WITNESSES TOLD BLOOMBERG THAT IT WAS PARTLY OVER UNPAID WAGES. PARTLY OUT OF CONCERN ABOUT THE COVID SITUATION IN JUNGLE. THIS IS FOXCONN ' S PRINCIPAL ASSEMBLY LOCATION FOR THE IPHONE 14 AND IPHONE 14 PRO, HANDSET HAS BEEN SUBJECT TO COVID ZERO CONDITIONS FOR A NUMBER OF WEEKS WITH THE GOVERNMENT LOCALLY AND AT THE NATIONAL LEVEL TRYING TO WORK WITH WORKERS TO KEEP THEM IN DORMITORIES THERE. THE LATEST IS THE SITUATION IS UNDER CONTROL AND THE PLANT IS OPERATING NORMALLY BUT THE CITY IS NOW INCREASING ITS COVID LOCKDOWNS ARE CROSSED EIGHT DISTRICTS THROUGH THE END OF NOVEMBER. SO THE COVID SITUATION IS SERIOUS AND YOU LOOK AT THE REACTION IN OFFSHORE YUAN, INVESTORS CLEARLY TAKING THE COVID SIDE OF THE STORY SERIOUSLY TOO. JOE: ALTHOUGH APPLE STOCK IN THE U.S. DOES NOT SEEM TO BE MOVING A LOT ON THIS. IS THIS SEEN AS KIND OF A ONE OFF BY U.S. INVESTORS? > > I THINK INVESTORS ARE LARGELY SANGUINE, AT LEAST THOSE BLUE BACK UP SPOKEN TO. THE WAY THEY LOOK AT IS IT HAS PROBABLY TAKEN AWAY ANY STOCK -- ANY ROOM FOR THE STOCK TO RALLY. THE IPHONE IS THE CONCERN. THE FACTORY BUILDS FOUR OUT OF FIVE OF EVERY IPHONE 14 HANDSETS BUILT. APPLE ALREADY WARNED US SHIPMENTS WOULD BE AT A LOWER VOLUME THAN EXPECTED IN THE MONTH OF OCTOBER GOING INTO NOVEMBER AT THE END OF THE YEAR. THIS IS A CRITICAL HOLIDAY PERIOD FOR APPLE. THERE IS CONCERN ABOUT VOLUMES BEING DEPRESSED BUT ALSO THE SITUATION SEEMS UNRESOLVED. AUTHORITIES SAYING THEY ARE WORKING WITH THE WORKERS AT THIS PLANT, TRYING TO DO THINGS LIKE OFFER HIGHER WAGES TO GET WORKERS WHO HAD FLED THE FACTORY BACK. WE WANT TO KNOW CERTAINTY WHEN IT COMES TO THE OUTLOOK FOR IPHONE PRODUCTION. JOE: ED, THANK YOU FOR THE UPDATE. CHECK OUT THE BALANCE OF POWER NEWSLETTER ON THE TERMINAL AND ONLINE. COMING UP, BALANCE OF POWER CONTINUES ON BLOOMBERG RADIO. I WILL BE TO THEIR FOR OUR SECOND HOUR AS WE SPENT TIME WITH AN AMERICAN ACTION FORM PRESIDENT, FORMAL COUNCIL OF ECONOMIC VISORS CHIEF ECONOMIST. WE WILL REVIEW SOME OF THE DATA AND GET READY FOR FED MINUTES TO COME OUT.

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Balance of Power Full Show (11/23/2022)

Bloomberg: "Balance of Power" focuses on the intersection of politics and global business. (Source: Bloomberg)

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