In short
Bloomberg Daybreak/Business Week Daily episode covering (1) FCC pressure on broadcasters after Jimmy Kimmel’s comments about Charlie Kirk and (2) UN reform and U.S.-China diplomacy, plus (3) market outlook and a White House update.
Guests
Hannah Miller (Bloomberg News Media Reporter). She covers media-industry and regulation dynamics. Annalena Baerbock (Germany’s former foreign minister; President of the 80th UN General Assembly). Walter Todd (President & CIO, Greenwood Capital Associates).
Key claims
FCC chair Brendan Carr’s threats and license “public interest” framing may have pressured ABC affiliates to suspend Kimmel, even though Commissioner Anna Gomez says there’s no basis to revoke licenses for editorial content. Media is more fragmented and social media increases stakes. Baerbock argues the UN must be reformed for efficiency and Security Council failure, but says stopping the UN would worsen humanitarian and security outcomes.
Notable examples
Kimmel’s indefinite suspension; Nexstar/Tegna FCC takeover; UN roles in UNICEF/WFP/COVID response; Trump-Xi call and TikTok deal progress; simultaneous U.S. stock index records; housing weakness in Greenville, SC.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOKimmel's Suspension and Media Relationships
0:00 to 0:56
The hosts discuss the suspension of Jimmy Kimmel's show following comments about Charlie Kirk and its broader implications for media and politics.
“The thing about AI for business, it may not automatically fit the way your business works.”
Kimmel's Suspension and Media Relationships
2:40 to 3:38
The hosts discuss the suspension of Jimmy Kimmel's show following comments about Charlie Kirk and its broader implications for media and politics.
“which got us all thinking about how U.S.”
Hannah Miller on Media Power Dynamics
3:38 to 5:50
Hannah Miller joins to discuss the contentious relationship between the media and the Trump administration, including pressures on media companies.
“There's also been federal cuts to funding for public radio and public television.”
FCC's Role in Media Regulation
5:50 to 8:04
Discussion on the FCC's influence over media content and the implications of government pressure on traditional and social media.
“And then like the affiliates coming in, like, I'm trying to understand, like, do we actually, cause you look at this story, we talk about it so much in the newsroom.”
The Future of Media Under Pressure
8:04 to 10:15
Exploration of how media executives are navigating pressures from the government and public sentiment in a fragmented media landscape.
“We should point out she's been an outspoken critic of the FCC chair and President Trump's attacks on the media.”
David Ellison and Paramount's Media Strategy
10:15 to 11:24
Insights into David Ellison's influence in media and his ambitions for Paramount amid industry changes.
“It's all about David Ellison and the pressure that he faces.”
Reforming the UN for Global Efficiency
14:01 to 17:26
Explore the need for reforms in the UN to enhance its efficiency and impact.
“But all we are talking about is the failure of the Security Council, because as you mentioned, the war in Ukraine going on because a permanent member of the Security Council can just put a veto.”
The US Role in Global Leadership
17:26 to 19:49
Discuss the importance of the US maintaining a leadership role within the UN and internationally.
“take a leadership role here when it comes to the U.N.?”
Climate Change and Renewable Energy
19:49 to 22:26
Examine the role of renewable energy in addressing the climate crisis and its global implications.
“and many partners are smaller countries.”
US Energy Policies and Global Trends
22:26 to 24:36
Insights into the tensions around US energy policies and the global shift towards renewables.
“So I think there is so much investment having spent in the renewable sector that there's no drawback.”
Show all 19 chapters
The UN's Effectiveness in Current Conflicts
24:36 to 26:29
A critique of the UN's effectiveness in light of ongoing global conflicts and humanitarian crises.
“So I would say that also in these countries, there are parallel trends going on and which trends prevails.”
Hope and Diplomacy in Difficult Times
26:29 to 28:00
The importance of hope and perseverance in diplomacy amidst global challenges.
“And always remember, what would you like to do, your neighbor would do?”
Optimism from the U.N. General Assembly
28:00 to 28:34
Leaders from around the world discuss progress and hope.
“General Assembly always creates gridlock in New York City and it gets a little crazy moving around, it always does give me a lot of hope and optimism.”
Trump's New Visa Fee and TikTok Updates
28:47 to 30:26
Discussion on immigration fees and Trump's call with Xi Jinping.
“President Trump adding a new$100 ,000 fee for H-1B visas in the latest crackdown when it comes to immigration.”
The Impact of U.S.-China Relations
30:27 to 33:19
Exploration of the nuances in U.S.-China trade negotiations.
“at least from the details that we have so far, which, as you two noted, came from the Truth Social Post, is that he will meet with President Xi on the sidelines of APEC that will be in South Korea next month.”
Week Ahead: Anticipating Trump’s Actions
33:20 to 35:31
Looking forward to upcoming events involving Trump and the White House.
“And so to try and hash out a trade deal, it doesn't happen quickly and it doesn't happen easily.”
Visa Program Overhaul and Market Uncertainty
35:32 to 36:30
Discussion on the H-1B visa program and economic implications.
“And I think even in the reporting process, if we're trying to figure out what's happening, so much of what we hear is, you know, it's official when Trump says it.”
Market Records: Analyzing Recent Trends
37:37 to 42:00
Insights into the stock market and record highs across major indices.
“Something we have not seen in, was it 21 years or something like that?”
Market Analysis Amid Possible Government Shutdown
42:00 to 45:10
Explores the implications of a potential U.S. government shutdown on the economy and investment strategies.
“a short-term stopgap measure was blocked in the House and Senate, if I'm not mistaken.”
Transcript
Automatic transcript. May contain errors.0:00The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand, but by embedding AI across HR, IT and procurement processes, we've reduced costs by millions, slash repetitive tasks and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM.
0:30Carol Massar:Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else. So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person. How you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optum.com. Get the news you need in just 15 minutes. Start your day with Bloomberg Daybreak, the podcast with a global view on the stories that matter.
1:07I'm Nathan Hager.
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1:54The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenevek on Bloomberg Radio. Well, a late night comics continued on familiar terrain last night as they hosted their first shows after ABC suspended Jimmy Kimmel's program over comments that he made about the assassination of conservative activist Charlie Kirk. I still have a show, though, right? OK, yesterday, after threats from Trump's FCC chair, ABC yanked Kimmel off the air indefinitely. That is blatant censorship. We have another fun, hilarious administration compliant show.
2:32Carol Massar:I do know Jimmy Kimmel and he's a decent, funny and loving guy. And I hope he comes back. All right. That, of course, was Stephen Colbert, Jon Stewart, Jimmy Fallon last night, which got us all thinking about how U.S. presidents have long had adversarial relationships with the media, news media, comedians, Hollywood and more, media altogether. Writing about all of this is Bloomberg's Hannah Miller. She's Bloomberg News Media Reporter, and she joins us here in our Bloomberg Interactive Brokers Studio. So Hannah, you know, presidents have had difficult relationships with media. It's the job of a journalist, after all, to hold power to account.
3:09Carol Massar:Is what's happening different? Like what how do we make sense of what's happening right now? Yeah, I mean, this administration has a particularly contentious relationship with the media. Trump is very outspoken about how unhappy he is with the way the media treats him, whether it's news media or late night entertainment hosts. There have been multiple lawsuits of major news organizations. We've even seen settlements come out of some of those. There's also been federal cuts to funding for public radio and public television. It also comes at a time, though, where the media industry is under pressure.
3:47I mean, it kind of feels meta just talking about this in one of the traditional forms of media. But we're also you know, we also embrace new media here. And I think everybody is doing that. This is not, you know, the 1950s or 1960s before the advent of cable, before the advent of the smartphone, where tens of millions of Americans tuned into these three networks every single night. Does that change the story at all? Yeah, I mean, I think part of it is just how fragmented media is. You have people tuning in on social media, sharing clips. People can dash off their thoughts within seconds and have millions of people see them.
4:24That's just up the stakes here. You know, Trump is very closely following all these different trends. We know he's someone very tuned in to what's happening on television, what's happening on social media. So it's unsurprising, you know, that he is making these comments and taking these steps.
4:42Carol Massar:So what does it mean for anybody who's running a media company? Because I do feel like what we've seen are deals done, money paid. I feel like in many ways, the heads of media companies are being pretty quiet in this environment, but actions are certainly being taken. I can only imagine what's going on behind closed doors. What are you hearing? Yeah, I mean, a lot of industry watchers have commented on capitulation, you know, that media execs are they're fearful of standing up to Trump. A lot of them have business stakes at play, even with this recent thing with Jimmy Kimmel. You know, Nexstar, it needs FCC approval for its takeover of Tegna.
5:25And that's, you know, that could be a reason why it put pressure on these ABC affiliated networks to not show Kimmel. So, yeah, that's something that we have to take into consideration, that there are business stakes at play here.
5:40Carol Massar:Do we truly understand the course of events of pressure, Kimmel's comments, Carr, the FCC chair? on the podcast with Benny Johnson. And then, right. And then like the affiliates coming in, like, I'm trying to understand, like, do we actually, cause you look at this story, we talk about it so much in the newsroom. Is it freedom of speech? Is it what Jimmy Kimmel said? Is it folks anticipating kind of getting on the good side of the FCC? Some would say like, do we kind of understand exactly how this all laid out? Yeah, it is. It can be very muddled. And a lot of these business entities will step forward and say, hey, these are two completely separate issues.
6:16We're thinking about this from an economic terms. We're thinking about this from viewership. They cite ratings as the reason why they're making these decisions. What we do know is that Brendan Carr, you know, he is also very outspoken on social media. He does these podcasts and he, you know, implied that something would happen if no steps were taken against Kimmel. You know, one thing that I've thought a lot about in recent days is the power of the FCC and the power of the government when it comes to traditional media versus what happens in social media. And we actually saw during, and this has been reported out, that even tech companies during the Biden administration faced pressure over what they showed on social media when it came to the COVID pandemic, for example.
7:02So even in a world where there isn't necessarily a government agency that is responsible for regulating some sort of medium, there still can be pressure even on tech companies. 100%. So it's not like tech companies, it's not like, okay, well, people are going to flee traditional because of worries about regulations. There's also concerns about impact from government officials on these other companies too, correct? Yeah, this is also very much a tech story. And we've seen, you know, debates about misinformation. You know, who has the right to say what is published on the Internet, what is shared on social media?
7:44We've seen also a lot of tech leaders align themselves with the Trump administration, you know, appearing at events, things like that. There have been significant changes to X under Elon Musk's ownership. So it's interesting to kind of see some of that trickle over now to traditional media.
8:00Carol Massar:You know, FCC Commissioner Anna Gomez was on Bloomberg Technology today. We should point out she's been an outspoken critic of the FCC chair and President Trump's attacks on the media. But she did join the gang and we just want to play it out for everybody. Listen up. Yes, we can initiate an investigation based on a complaint that is filed. We can also initiate it ourselves. But let me be clear. There is no basis for revoking any licenses because of the Jimmy Kimmel content or because of normal editorial decisions from a broadcaster. The last time I can think of that we revoked a license was for failure to air a particular broadcaster for more than a year.
8:44Carol Massar:OK, that again was FCC Commissioner Anna Gomez earlier with the Bloomberg Technology B-Tech gang on Bloomberg TV. I do want to point out that the FCC chair, Brendan Carr, has said he's talked about when you've got an FCC license, it comes with an obligation to operate in the public interest. And he likened Jimmy Kimmel's comments to maybe news distortion, which is against FCC's rules for broadcasters. But there does feel like two sides to the coin here. And, you know, and then you throw in freedom of speech. I mean, there's a lot here to be kind of continually unpacked, I feel like. Where do you think this all goes?
9:23Yeah, I actually got to see Commissioner Gomez speak yesterday at a conference, and she was very adamant in what she had to say. And that, you know, these threats are empty, that there's this coercive element here to making these businesses aligned to a single viewpoint. So it's and she's talked about how scary this is and what's happening.
9:45Carol Massar:And I believe she was appointed by President Biden. Is that correct? Or? Yes. So she has to be fair and fully transparent. Yes, she's fully embraced her role. But she said, you know, a lot of the times this is from yesterday. She's in the dark. You know, she doesn't know that car is going to go out there and make these comments. So she sees herself as an opposing voice. Makes me wonder about, again, going back to CEOs who are running media companies, if they feel like they're in the dark. So that's exactly where I want to go. Just the last minute we have with you, because you and Lucas Shaw have this great big takeout for Bloomberg Businessweek.
10:17It's all about David Ellison and the pressure that he faces. just give us 40 seconds on this story. Yeah, this is a really fun story to write. The Ellison family has increasingly become a powerful force in media. We're seeing that with TikTok. We're seeing that with Paramount. We're seeing that, you know, Paramount potentially consider submitting a bid to buy Warner Brothers Discovery. There is so much happening here. So it was very interesting to dive into David Ellison's background, you know, his time at Skydance, building out that company and what he envisions for Paramount going forward. He wants Paramount to be very technologically forward.
10:52He's kind of modeling it, you know, off the Silicon Valley startup culture. He wants to make changes fast, too. So it's going to be exciting to see what he has in store. Friendly with the Trump administration, just quickly. Yeah, I mean, they've been to UFC matches together.
11:05Carol Massar:Okay, so it's just, you know, all kind of fitting together and stuff. Anyway, this is a great read. Highly recommend everybody head to the Bloomberg or Bloomberg.com to read the reporting by Hannah Miller and Lucas Shaw on what's going on at Paramount, all of this stuff. Hannah Miller is a media reporter at Bloomberg News. She rocks. Thank you. Stay with us. More from Bloomberg Business Week Daily coming up after this.
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12:14Carol Massar:Carol Master along with Tim Stenevich live here at Bloomberg headquarters in New York City. Well, the 80th session of the U.N. General Assembly is underway here in the city with the first day of the high-level general debate happening next week. Former German foreign minister Annalena Baerbach was elected president of the General Assembly's 80th session on June 2nd. Her appointment comes as the regional group that includes Western Europe takes its turn at the helm of the world body. And we are delighted to have her here in studio. President Meribach, so nice to have you here with us. It's a shame there's nothing going on in the world to talk about.
12:48Carol Massar:Let's talk about it. And I'm going to give you a little bit of a list, very familiar, I'm sure, to you. Russia's war with Ukraine, now three and a half years old. Recent incident when Russian drones flew over Poland. Israel and Hamas coming up on its second year anniversary. The tech war, the trade war, China, Taiwan, question marks. President Trump saying he had a productive call with President Xi just today. Two largest economies in the world. Top of mind for you as world leaders are gathering here at the UN this week. It's a lot. It's a lot. And it underlines why it needs this world parliament, the United Nations, more than ever.
13:24However, looking around the world, we are not only in shaky times, but this institution is under heavy pressure politically and financially, and therefore we have to reform it. This is the biggest task for this upcoming year. And as well, and this is what I would like to underline as president of this General Assembly and the United Nations, that if we wouldn't have the United Nations, we would have to build it because none of these global challenges you just mentioned could one country face alone or even solve alone. And this is why the theme of this session is better together. What is your priority in terms of reform?
14:00What is the number one reform that you intend to accomplish? It has to be more efficient. It's a very big organization. It does incredible work. But all we are talking about is the failure of the Security Council, because as you mentioned, the war in Ukraine going on because a permanent member of the Security Council can just put a veto. So many are asking, so if you're not delivering on peace and security, why does it still matter? But their institutions like UNICEF, everybody knows, millions of children wouldn't go to school without the UN, UNICEF. 125 million people would have literally starved last year if the World Food Programme wouldn't have supported them.
14:41And imagine the COVID pandemic. Even the biggest countries like the U.S., a strong economy like my country, Germany. We could have not fought this virus alone because COVID didn't have a passport. So you can only do it together with the help of the World Health Organization and vaccination going on. But people don't know about these great successes. So make clear that this is all the UN and the money goes to the points where it actually delivers on the people. It's the biggest task and this is why it needs this reform. But it needs also the political commitment of leaders. It needs obviously the funding of member states.
15:22and currently especially the host country is questioning this.
15:25Carol Massar:What can you tell us about funding and where you are and how much it's difficult and what more could you use and what do you need? Well, every country should pay their obligation and the United States has been one of the biggest donors. I'm also always underlining this. Germany has for a long time been the second biggest donors, but it's in the self-interest of every country itself because if we would not have these kind of organization, imagine also like terrorism, how would we fight it together? But at the moment, there have been the announcement by the American administration that they might stop everything.
16:03So we are in the depths of discussion, like peacekeeping. If we want to keep peacekeeping going on, then we need also the funding from the U.S. side. How do you look at the U.S. right now as a partner, if you indeed do look at the U.S. as a partner right now? Well, as a transatlantic, not only friend, but like my country owes to the American people, not only that we could recover after the Second World War, the biggest horror my country did around the world. Actually, also the reason why this United Nations was founded and this is why Germany is so committed. But also lately, reunification, that East and Western Germany came together again.
16:43And we are these countries are all together in NATO. So it's the understanding of one for all and all for one. And this is why I think the transatlantic bond has to be stronger than ever before. But obviously, they are also at these kind of times different views on different topics. And this is why the United Nations comes into play. This is a place where you talk about also disagreements.
17:08Carol Massar:Well, but on that, and I want to kind of pursue the U.S. role. I mean, what would you ask of the United States now? Because, you know, there is certainly pushback. And we've got a president who at times has said we've done a lot as a nation. What more, though, and how important is it for the U.S. to continue to take a leadership role? We've talked a lot about the importance of soft power, too, globally. But how important is it that the U.S. take a leadership role here when it comes to the U.N.? It's one of the biggest countries in the world. It has strong economic interests, like many countries in the world.
17:43And we saw already, not only with COVID when global trade stopped, we saw it also when the Houthis attacked ships in the Red Sea, what it would mean for global trade. We saw it when one cargo ship was turned in the channel a couple of years ago. So the effects also for one of the biggest economic powers like the U.S. without a world of free trade and rules which are based on the U.N. charter on every country having the same rights would be horrible. I mean, it attaches employment, it attaches economic growth. And maybe one of the recent topics, artificial intelligence, like the whole competence lies in this country here, in some other countries around the world.
18:27So the whole setup for artificial intelligence and there's a high interest also from the U.S. administration, this will take place on Thursday, actually, at this high level week. You mentioned when all the tech companies are coming together, together with governments to say, OK, this is a new potential for the whole world. But it obviously also needs regulation, like if we look at deepfake and the dangers for the use. How does the role of the United Nations change in a world where countries increasingly are looking inward? And I speak about the United States, for example, in the America First mentality, in the America First agenda of this administration.
19:05How do you convince this administration that the UN is worth it? Good diplomacy, in my point of view, is not about convincing. And it's not like just speaking with the people who have the same opinion anyhow. Then you can just speak to the mirror, actually. But it's actually taking the people from there they are and try to understand why are they arguing that way. And if I have understood correctly, this administration, this president is very keen about bringing peace to the world. So I invited all heads of states to think about this motto, Better Together. How can we bring peace to this divided world?
19:49You need partners. and many partners are smaller countries. So you need majorities. And coming together and ask themselves, so what could I do for the United Nations so the United Nations would deliver also for me, especially with regard to peace, support the United Nations peace plans around the world. You can only do together if you're also engaging with smaller and other countries around the world. And the president has announced that he will come on Tuesday, that he will speak on Tuesday. And I think this is really the place to be for world leaders at this United Nations.
20:26Carol Massar:We're talking with Annalena Baerbach. She is 80th UN General Assembly President, foreign German, foreign minister, joining us here in studio. You know, we know the division that exists geopolitically. We see it every day. You've been a very strong voice on things like climate diplomacy, human rights. When we have such division, when it comes to trade wars and business wars and tech wars and just plain out wars, how do we move forward on things like climate and climate change, which I feel like it's safe to say we are all seeing it every day in terms of its impact. Human rights violations, which I think now is becoming a discussion here once again in the United States in terms of human rights or free speech.
21:09Carol Massar:So I'm just curious, How do you tackle those and have smart discussions with world leaders about that against the broader backdrop that's troubled? Maybe starting with the climate crisis. Anyhow, I always say if you're not staying positive, you should not be in international politics. Yeah, then you choose the wrong job. But for the climate crisis, for example, I've been at the climate conference in Paris 10 years ago. And this was after failure of failure of climate conferences worldwide. and people said we should just stop. And then 10 years ago, the world agreed, well, obviously climate crisis is happening and it's really touching us, but they didn't dare to say phase out of fossil fuels.
Read the full transcript
21:51They didn't dare to say renewable energy. They just said we had a problem. And now in 2025, actually last year, when the world came together at the climate conference, they said the future is renewable. Yeah, so it was only 10 years time and was kind of a resolution. So you could dislike that, say, I don't like renewable energy. But, I mean, the power goes where the money goes. And the big industry around the world, they have invested into renewable energy. If you want to get into the market around the world, like on the African continent, where still millions are not being electrified, this is only possible through renewable energy.
22:28So I think there is so much investment having spent in the renewable sector that there's no drawback. Not even if by a political decision, because this would be all stranded investments. Yeah. Companies invested into these new trends. So in this regard, kind of the economy has taken over. Doesn't mean that we still have also other ways, obviously, to go. But if already the Gulf countries, I mean, the oil producing countries are saying we are standing on a second leg and this is renewable, then obviously the world has changed in this regard. And I mean, you've seen it here in your own country. No money in the world can protect anybody against the climate effects.
23:10When in California, like the richest neighborhoods were burning, it didn't help that you have money. You can only help together if you do climate protection measures and protection and development around the world.
23:23Carol Massar:So world leaders are continuing to have the conversation. Companies are continuing to spend and you're seeing a movement continuing to move forward when it comes to renewable energy. Yeah, these are two trends. But obviously, this is our world of capitalism. Yeah. The logic goes where the money goes. And if you just see at the numbers of the last years, yeah, where the investment, the big investments went, there's a clear trend. And this clear trend is, sorry, facing out a fossil. Not tomorrow, not the day after tomorrow, but in the next decades. The president of the United States has made his disdain for renewables, specifically wind and solar, well known.
24:03He doesn't like windmills. He likes fossil fuels and oil. And he likes also nuclear power. But we know there are challenges with nuclear power after this. In your view, is the U.S. going to be left behind if we don't invest in renewables? Well, my role is not to commenting on national politics. However, I've been to Texas, actually, as a foreign minister, obviously, also. very strong on fossils, but they showed me there, especially all the wind parts, and they showed me how you make ammoniac carbon neutral, because this is the source for the future with global technology. So I would say that also in these countries, there are parallel trends going on and which trends prevails.
24:46This is a decision of every national state. But if you see the trend worldwide, if you see it in China, if you see it in Europe, But if you see it in Africa, where the population of the future is living, it's crystal clear where the future economy will go. I just want to ask a big picture question. Carol went through this list of the challenging environment that we're in. Russia's war with Ukraine now three and a half years old. Israel and Hamas coming up on its second year anniversary. The challenges between China and Taiwan. You said you want to make the UN more efficient. But what would you say to a critic that says it hasn't been effective in the last few years?
25:26You're right. Not effective enough. But I always turn the question around. Would any country in the world be better off without the United Nations? Because the logic of those who argue, well, it didn't deliver on the good, would be stop doing the right thing. But then evil would prevail. Would any truck of humanitarian aid would enter Gaza if we say UN doesn't work anymore? Would the war in Ukraine would stop if we wouldn't have peace negotiations going on? Not at all. So we have to try harder. This is our job. And we know from history that the most important thing is to keep up hope. And hope is not the conviction that everything will go right.
26:09But hope is a conviction that you do the right thing. And diplomacy is about doing 300 days or sometimes even 3 ,000 days. If you look back in history again, Second World War, it lasted for years and years and years. And then afterwards, we built the United Nations. So it's about not giving up, trying even harder. And always remember, what would you like to do, your neighbor would do? This is what I asked as a European when there was the full invasion of Russia and Ukraine. imagine that this was only eight hours drive away from berlin capital would i not want my neighbors helping me out when we would have been invaded well having said that as a european
26:52Carol Massar:do europeans you know feel like the united states has abandoned it and an important ally and group if you will well you bring me in difficult situations yeah that's great i switched my job no no and i'm speaking now for 193 uh member states but obviously i do have also a national uh identity uh but i mean this is all to democracy yeah uh governments change and therefore policy change but i'm a believer as i said not only an optimist but a believer that deep inside when everybody asks themselves so what do i wish for my own children what i do i wish for my family is like to have clean water and food, to live in peace and security, to go to school and to wish that my friends are helping me out.
27:41And especially between Europe and the US. I mean, this has been the deepest friendship over the last decades. So the motto we had all together, all for one and one for all, I think this is what held us really also the freedom in our different countries. And And I believe that the majorities on both sides of the Atlantic sees it still the same way.
28:04Carol Massar:Well, I have to say, while the U.N. General Assembly always creates gridlock in New York City and it gets a little crazy moving around, it always does give me a lot of hope and optimism. We get an opportunity to talk to leaders like yourself, global leaders who are seeing different perspectives, different views, and just talking about progress and things that are getting done around the world. So it always gives me some hope. So I'm so glad we got some time with you. Good luck this week. Thank you very much and all the best. Take care. Annalita Baerbach, she is the 80th UN General Assembly President, foreign German foreign minister, joining us right here in studio.
28:35This is the Bloomberg Businessweek Daily podcast. Listen live each weekday starting at 2 p.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station.
28:50Carol Massar:Just say Alexa, play Bloomberg 1130. President Trump adding a new$100 ,000 fee for H-1B visas in the latest crackdown when it comes to immigration. A lot going on when it comes to the president in the White House. He did also say, the president, that is, that he would meet Chinese President Xi Jinping on the sidelines of the upcoming Asia-Pacific Economic Cooperation Summit and hailed progress toward finalizing a deal over TikTok after a highly anticipated call earlier today. He put stuff out on social, Tim. Here's what he said, quote, I just completed a very productive call with President Xi of China.
29:23We made progress on many very important issues, including trade, fentanyl, the need to bring the war between Russia and Ukraine to an end, and the approval of the TikTok deal. The call was a very good one. We will be speaking again by phone. Appreciate the TikTok approval and both look forward to meeting at APEC, Trump added.
29:41Carol Massar:All right, let's get more on that conversation the week that was a busy one in Washington, although also was over in the UK and elsewhere. So there was a lot going on when it comes to the chief executive of the United States. Let's get to Bloomberg News White House correspondent Lauren Dozenski. She joins us from the Bloomberg News Bureau in the nation's capital. Lauren, where to start? Where to start? The president, let's start with Xi and the president, because two largest economies, what they say, what they do impacts the world. Was it a very productive phone call? Progress, I think, is the key word when we want to look at this phone call.
30:16The details are really scant. The president mentioned some sort of progress with this deal with TikTok, but we have no idea what that means. Truly, I think the most substantive thing out of the phone call, at least from the details that we have so far, which, as you two noted, came from the Truth Social Post, is that he will meet with President Xi on the sidelines of APEC that will be in South Korea next month. Of course, the details are still unknown. We don't know if it'll be before or afterward or specific days, whatever. Obviously, every journalist in town is trying to figure out when exactly that's going to be.
30:48Honestly, every journalist in the world. This is the biggest story in the world, really. And trying to figure out what exactly these two leaders have agreed to, what these means for tariffs, as well as TikTok. We just don't really know yet. So any further details really are is what everyone truly is going to be chasing. Well, we got other details from the Chinese readout of the call. It struck a more measured tone. How is that different than what we heard from President Trump in his social media post? Yeah, I mean, clearly it was a good conversation. It was a productive conversation. But really, both were really scant on details.
31:26The Chinese readout was interesting because it kind of chided the U.S. saying not to pursue unilateral trade or to go back on agreements that had been reached before. Kind of a nod to Trump going his own way. And also, you know, we've seen Trump also on social media kind of pull back on previous agreements with China. So really, I think China is trying to deal with an unpredictable leader to describe Trump. And I think Trump himself, you know, he he is very clear that he doesn't want to telegraph what he's going to do, whether it comes to the war in Ukraine, dealing with Russia, etc. He's not going to say what he's going to do ahead of time, at least in terms of negotiating.
32:06He really wants everyone to be on their toes and to really try and get the best deal, he says, for America.
32:13Carol Massar:Lauren, as long as the two are talking, that's a good thing. Yes, and markets feel that way as well. The idea that the two are working together and, you know, not icing each other out. And we're also not seeing over 100 percent tariffs on goods from China by the U.S. I mean, I think we can all see that as a good thing. And also good, to be fair, right, to acknowledge that anything that goes on between these two nations, as we said, the two largest economies in the world. We've talked about this when the trade and tariff spats started or whatever you want to call it, but that any trade agreement with China is going to be a complicated one, a long one.
32:51Carol Massar:So we have to understand that it's going to be a lot of back and forth before we can kind of say something's a signed deal. Absolutely. And I I think that was kind of the issue, at least initially, when President Trump on Liberation Day 2.0 said that they were going to make 90 deals in 90 days, to a certain extent glossing over the fact that trade deals take years to iron out. There's a lot of nuances there. There's obviously a lot of interest. And that's with any country, much less these two global superpowers being the U.S. and China. And so to try and hash out a trade deal, it doesn't happen quickly and it doesn't happen easily.
33:25And I think any capital anywhere in the world can say that, whether they're trying to get Howard Lutnick or Scott Besant on the phone to hash out details with their own trade deals. Clearly, it's very complicated. And so the idea that the U.S. and China negotiations are ongoing and taking some time, I think, is understandable. Lauren, it's Friday, so maybe we'll do a little week that was when it comes to Washington. An official visit with the U.K., tech agreement with the U.K. involving investments by U.S. companies. The president's turning to the Supreme Court to remove Fed Governor Lisa Cook.
33:58The president's effect on social media. What about next week? What does that have in store for us? Help us push this forward a little bit. Great question. We do know that the president does want to go to the Ryder Cup. He said that he's planned to go to the Ryder Cup. Obviously, President Trump's affinity for golf is well established. It's also in New York. He loves New York. So we'll at least see that. But really, like, not to sound ridiculous, but every week hold something new and unexpected with this president. And he at least will not get his state dinner for the third time. Trump, back in the U.K., very much enjoyed his time with Charles and Camilla, said that it was the highest honor of his life that he was in the U.K.
34:42So while he's onward and upward and headed to the Ryder Cup, there's also—it won't be quite as gilded and full of pomp and circumstances this week was at least.
34:52Carol Massar:OK, yeah. And I was just thinking about kind of the coming week. I mean, it's really we live on things that come out of the White House that come out on social media, but there is still a lot going on. We've got two wars that are still going on overseas, something we're going to talk about with our next guest in just a moment after our break. At the same time, we are still kind of figuring out trade deals and what they mean kind of longer term. I mean, CEOs, we're going to get into a new earnings season and they're going to be talking about that. We saw FedEx talk about that. That's something we're going to talk about in just a moment as well.
35:24Carol Massar:So there's still a lot in terms of those areas to come from the White House. Absolutely. There's, I think, so much uncertainty in terms of how this White House deals with, you know, projecting what they want to do. And I think even in the reporting process, if we're trying to figure out what's happening, so much of what we hear is, you know, it's official when Trump says it. It's official when the president puts it out. And until the official word is coming from the president's lips or truth social, that's when we will then ultimately get certainty. And I think certainly for CEOs and, you know, really anyone who's trying to navigate these markets, it can be a little uncertain.
36:07and obviously having some sort of close eye on the president's true social, but also what he's saying day to day, it really just depends on where his headspace is.
36:18Carol Massar:Yeah, or moments ago when we got the headline that the president is expected to sign a proclamation to overhaul the H-1B visa program requiring a$100 ,000 fee for application, something we will follow through the rest of the day and probably into next week. Lauren, so appreciate it. Lauren Dozenski, she's White House correspondent, Bloomberg News, joining us there from the nation's capital. Stay with us. More from Bloomberg Businessweek Daily coming up after this.
37:05to excel in the markets. And I'm Alexis Christophorus. Listen to us for essential conversations with the smartest names in economics, finance, investment, and international relations. That's the Bloomberg Surveillance Podcast. Subscribe today on Apple, Spotify, or anywhere you listen. CarPlay and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station. Just say, Alexa, play Bloomberg 1130.
37:32Carol Massar:We saw yesterday the S &P 500, the Dow, the NASDAQ 100, and the Russell all hit records at the same time. Something we have not seen in, was it 21 years or something like that? No, I think it was since 2021. Oh, okay. Sorry. I think. Hold on. Hold on. Hold on. Carol, I'm going to get the right information, okay? Because you're putting me on the spot. I have it written down. Yes, we get the knucklehead award. Will you please continue with the introduction, and then I will get you the right information. I think it's in our... I know. I know. I know. I'm funny. Anyway, it's a big deal. And it's made everybody think about to have all of these major averages, including the Russell, the small cap, that in terms of the markets moving up, stocks moving up, it's been much more broad based.
38:14Carol Massar:Over to you. OK, the first time this has happened since 2021. It's only happened on 25 other days. There we go. This century. 25 years. 25 days. It's only happened on 25 other days this century. And that would be the S &P 500, the Dow, the Nasdaq 100 and the Russell 2000 closing at a record simultaneously. It did happen yesterday, but might not happen today with the Russell. Walter Todd is definitely saying, you know, go ahead. Just come on over to me. Yeah. He's like, what are they doing? Help us, Walter. It's just a Friday here at Bloomberg. Hey, Walter Todd is president and chief investment officer of Greenwood Capital Associates.
38:44Carol Massar:Excuse me. He joins us from Greenville, South Carolina. Nice to have you here. I don't know if you're watching Southern Charm. I'm just going to put it out there. I have a bunch of family in South Carolina. It's an area where real estate's been booming. There's a lot of companies that have set up shop over the past few years. You come into the airport, you pass the Boeing planes. It's just a lot happening. How do you see the economy, what you are seeing on the ground, and what you think is happening more broadly when it comes to the U.S.? Great to be with you guys this afternoon. I have a lot of ties to Charleston.
39:22My mom, my sister, my daughter, and my stepson are all down there. I go down there quite a bit. And it is booming. And here in Greenville, this city, this part of the state, and really the whole state of South Carolina and the southeast in general, right, has benefited from a lot of tailwinds. So, you know, the economy seems to be doing well. Anecdotally, I know there's a lot of mixed messages in the national data. And I think you kind of heard some of that confusion in Powell's testimony or his press conference on Wednesday. So, again, I think in general, the economy is OK. I just think, talking about the markets and the new all-time highs that were hit across the board, it just seems like the market's maybe running ahead of the pace of the economy at this point.
40:08That's our thought. OK. So, you said the economy is generally OK. Where are you seeing weakness right now? Yeah. So, we're seeing it in housing. I was talking to some folks in the industry here. They're seeing more existing homes come on the market. They're sitting on the market for longer. They're not getting the asking price. A year ago, a house barely came on the market here in Greenville and it was gone, or it may not have come on the market and it was gone, but now you're seeing houses sit for weeks and months. So we're definitely seeing some pressure in housing. We saw this with Lennar's report last night and their call today.
40:42So rates are definitely impacting that. The service business is very strong. Travel is very strong. South Carolina, big tourist, uh, state destination. So we're seeing good, uh, good business there as well. But I mean, definitely the, obviously the lower tier or the, you know, the bottom 50 % of earners are, you know, I think challenged with the, with the price environment right now. Yeah. I think, look, that's not going to surprise anyone. We've talked a lot about a tale of two different economies right now. And I think anecdotally, and you can even look at the data to, to think about the difficulty that some people are having finding jobs, especially young people.
41:17That's certainly a challenge. There's also the challenges when it comes to inflation on certain things, the price of beef and what tariffs on imported meat from Brazil and other South American countries in Australia, too, will do to beef prices. We'll see what happens there. There's also the question about what happens with the U.S. government and the probability of a shutdown. Our producer shared some notes with us. You think that probability is at 56 percent right now. Do you still believe that even after we saw some movement in the House, but things go to the Senate now? Yeah. So that statistic comes from Polymarket.
41:52That's the 56%. So that's probably better than anything to look at a probability. I think both efforts to do a continuing resolution, a short-term stopgap measure was blocked in the House and Senate, if I'm not mistaken. I think that was the headline this afternoon. So it looks like we're at least, as we see here today, more likely that probability has probably gone up. When you said it was polymarket, I went to check, it was at 58%. And then, as you were speaking, it went up to 59 % on polymarket. Yeah. Again, government shutdowns usually don't have a long-term impact on the economy or the market, for that matter.
42:30But given the tensions in Washington right now, maybe this lasts a little bit longer than anticipated if we do get one. And given that the market is priced for perfection in a lot of ways, that could have an adverse effect on stock prices as well. And the one that I'm looking at is, is there going to be a U.S. government shutdown in 2025? That's at 58 % to back down to 58%. And then there's another one, will the U.S. government shut down by October 1st? That's a 52 % chance. So, if that does indeed happen, I mean, we've seen this rodeo before. So, what should investors sit on their hands? No. Again, I don't think you invest around that necessarily.
43:12It's just one of those risks, and there are many out there, that our view is that the market is just not discounting a lot of bad news or any risk at this point. So, again, as I said in my notes to you guys, I think you'd be more tactical right here. You'd be patient, look for opportunities, be opportunistic, because individual stock volatility is very high compared to overall market volatility, which is very low with the VIX sitting around 15. But you get these really dramatic moves up and down with individual names, and we would just advocate for being patient and taking advantage of those.
43:52Carol Massar:All right. So, what I always like to ask people, somebody comes to you, Walter, and they've got some new money to put to work, where do you do it? Because it did sound like you think that the market is ahead of what's going on in the economy. So, I'm not quite sure if you would say, sit on that money, put it in something like cash or cash-like. I don't know. What's the play here? Yeah. So, I have to give the obligatory, you know, every situation is different. I know, I know, I know. I'm your favorite, like, niece, and I come and I say, what do I do with my money, Uncle Walter? What do we do? Yeah.
44:27Yeah. So, we would, again, I think what we would do is just, you know, be patient. I mean, there are names, you know, in our portfolios that we would absolutely take full positions in today. But there are also names that we hold in our portfolio that we'd probably wait for to add full positions. We might take a starting position in the name that's run, but Oracle, for example, we're fortunate enough to own that. It went up 40 % in one day. We actually sold half the position in that. So that's not a name we would go into full bore right here. So again, being a little bit more tactical with how we would put money to work with new money coming in.
45:04Carol Massar:Probably more like your favorite sister-in-law. I'm just going to put it out there. Walter Todd, have a good weekend. So appreciate it. He is president and chief investment officer of Greenwood Capital Associates. Joining us from Greenville, South Carolina. This is the Bloomberg Business Week Daily podcast. Available on Apple, Spotify, and anywhere else you get your podcasts. Listen live weekday afternoons from 2 to 5 p.m. Eastern on Bloomberg.com, the iHeartRadio app, TuneIn, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg Terminal.
45:47Hi, I'm Tom Keen, inviting you to join me for the Bloomberg Surveillance Podcast. It's about making you smarter every business day. I'm Paul Sweeney. We bring you complete coverage of stocks, bonds, commodities, even crypto. all the information you need to excel in the markets. And I'm Alexis Christophoris. Listen to us for essential conversations with the smartest names in economics, finance, investment, and international relations. That's the Bloomberg Surveillance Podcast. Subscribe today on Apple, Spotify, or anywhere you listen.
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Senator Ted Cruz has become the most prominent Republican to criticize Federal Communications Commission Chair Brendan Carr, saying President Donald Trump’s top media regulator resorted to “mafioso” behavior to pressure Disney Corp.’s ABC to remove late night host Jimmy Kimmel.
Cruz, the chairman of the Commerce Committee and a frequent defender of the Trump administration, took to his podcast in the wake of Kimmel’s indefinite suspension this week to describe Carr’s actions as “dangerous.”
Carr earlier in the week implied on another podcast that ABC could face serious consequences from the government over Kimmel’s remarks about the shooting of conservative activist Charlie Kirk. Only hours later, ABC pulled Kimmel’s show.
Cruz said he doesn’t believe the government should punish media companies over political disagreements.
Today's show features:
- Bloomberg News Media Reporter Hannah Miller on President Trump’s comments about pulling broadcast licenses from outlets he feels are covering him unfairly
- Annalena Baerbock, President of the United Nations General Assembly, on the UN’s role in a time of heightened geopolitical tensions
- Bloomberg News White House Correspondent Lauren Dezenski on Friday’s phone call between President Donald Trump and China’s Xi Jinping, and the planned meeting between the two leaders
- Walter Todd III, President and Chief Investment Officer of Greenwood Capital Associates, on whether the bull market will continue
See omnystudio.com/listener for privacy information.