BLOOMBERG'S LAURA DAVIDSON AND NICK WADHAMS. WE WILL GET TO
HIM AND WE TALK ABOUT SECRETARY YELLEN AND CHINA.
THE NEWS REALLY COMES FROM JOE MANCHIN.
HE IS THROWING HIS WEIGHT HEINZ MCCARTHY, SAYING WE SHOULD
MAYBE NEGOTIATE AND THROWING SOME SHADE AT THE WHITE HOUSE.
HOW IS THAT LANDING FOR THE HOUSE REPUBLICANS?
HERE IS A STATEMENT NOW. THIS REALLY GIVES HOUSE AND
SENATE REPUBLICANS A LEG UP. JOE MANCHIN IS SAYING I DO NOT
AGREE WITH EVERYTHING IN MCCARTHY'S PROPOSAL BUT WHAT I
DO WANT IS TO NEGOTIATE, COME TOGETHER AND THAT IS SOMETHING
THAT IS POPULAR WITH AMERICANS. WHEN YOU LOOK AT THE POLLS,
PEOPLE WANT THE PARTIES TO WORK TOGETHER.
THAT DOES NOT MEAN THAT THEY NECESSARILY WANT THEM TO
COMPROMISE. THEY WANT THEM TO DO WHATEVER
THEIR POINT OF VIEW IS BUT JOE MANCHIN IS DOING SOMETHING.
HE IS RUNNING FOR REELECTION AND HE IS MAKING A POINT THAT
IS POLITICALLY HELPFUL AS WELL AS FOR MARKETS, THEY ARE
STARTING TO FREAK OUT AND JOE MANCHIN IS PUTTING A PIN IN
THAT, SAYING WE'VE GOT TO MOVE FORWARD WITH SOMETHING IN
MCCARTHY HAS A PLAN AND IS MOVING FORWARD AND THAT IS THE
ONLY BALL GAME IN TOWN.
>> BLOOMBERG NEWS SPENT SOME TIME SPEAKING WITH SENATORS.
SENATOR JOHN WAS AMONG THEM AND HIS VIEW ARE IN TALKS AMONG THE
DEBT CEILING, TAKE A LISTEN.
>> THE HISTORICAL TRADITION OF WAITING TO THE LAST MINUTE AND
CREATING ANXIETY IS WEARING THIN. WE ARE GOING TO HAVE TO
NEGOTIATE THE BUDGET, BUT WE DO NOT HAVE TO HOLD HOSTAGE THE
DEFAULT. SO I THINK WE CAN CHEW GUM AND
WALK AT THE SAME TIME.
>> THEY MIGHT HAVE TO DO MORE THAN THAT AT THE SAME TIME HERE
BY THE SOUNDS OF THINGS. THE FREEDOM CAUCUS IS
REPORTEDLY ASKING FOR ADDITIONAL WORK REQUIREMENTS
FOR MEDICARE AND FOOD STAMPS.
WE KNOW THEY HAD ASKED FOR THE INFLATION REDUCTION ACT TO BE
REVOKED. THIS DOES NOT SOUND LIKE
SOMETHING THAT IS FULLY BAKED. IT DOES MCCARTHY HAVE THE VOTES?
>> HE DOES NOT SO THAT'S CHAOS FOR MARKETS.
REPUBLICANS AND DO NOT AGREE WITH DEMOCRATS.
THIS IS GOING TO BE A MOVING BALL GOING FORWARD AND IT WILL
LOOK LIKE WHAT YOU ALLUDED TO EARLIER, THE SPEAKER DEBATE OR
THERE'S GOING TO BE LAST-MINUTE DEALMAKING CONSTANTLY ADDING
THINGS THAT ARE GOING TO BE NO GOES IN THE SENATE AND THEY
WILL HAVE TO RENEGOTIATE ONCE A GETS ON THE OTHERS OF THE
BUILDING. WILL IT MAKE IT TO THE SENATE?
WHY DOESN'T MCCARTHY -- HE WANTS THEM TO VOTE FOR THIS SO
HE CAN SHOW JOE BIDEN I HAVE MY TEAM TOGETHER TO COME TO THE
TABLE. DOES IT EVEN NEED TO BE A BILL
THAT MAKES IT TO THE SENATE? IT IS DEAD ON ARRIVAL,
SHOULDN'T THEY PUT EVERYTHING INTO BEGIN NEGOTIATIONS WITH
THE WHITE HOUSE?
>> THEY ARE CONCERNED ABOUT MODERATE REPUBLICANS WHO DO NOT
WANT TO VOTE FOR THESE THINGS.
>> THEY DON'T WANT TO PUT THEIR NAME ON IT.
>> AND THEY DON'T WANT TO BE UNPOPULAR SO THAT'S A TRICKY
BALANCING ACT. TIME IS NOT ON THEIR SIDE.
TAX RECEIPTS ARE COMING IN LOWER-THAN-EXPECTED WHICH MEANS
THE DEFAULT COULD BE JUNE VERSUS JULY THROUGH SEPTEMBER
RANGE THAT WE BEEN HEARING.
>> PRETTY AMAZING WHEN YOU CONSIDER THE IDEA OF THESE TWO
MEN, THE SPEAKER AND PRESIDENT NOT TALKING FOR 75 PLUS DAYS.
WHAT WILL BRING THEM TO THE TABLE IF NOT A REPUBLICAN VOTE
ON A BUDGET?
>> THAT'S PROBABLY GOING TO BE A THING.
JOE BIDEN SAID I WANT TO SEE ACTION FROM YOU.
I'M NOT NEGOTIATING. THAT WILL BE AN UNTENABLE
POSITION GOING FORWARD, PARTICULARLY AS JOE BIDEN NEEDS
TO LOOK PRESIDENTIAL. THERE ARE RUMBLINGS HE WILL
ANNOUNCE HIS CAMPAIGN AT SOME POINT IN THE FUTURE, SO THIS
BECOMES INTERTWINED WITH THIS DEBATE AS VOTERS ARE GETTING
THE FIRST LOOK AT CANDIDATE JOE BIDEN.
>> HE IS STARTING TO MEET WITH DONORS.
>> NEXT WEEK IN WASHINGTON HE IS HAVING A BIG GROUP OF
DONORS, A GROUP THAT HE HAS LEFT OUT IN THE FIELD AND HE IS
TRYING TO BRING THEM BACK INTO THE INNER CIRCLE.
>> I WANT TO CHANGE GEARS TO A BIG STORY WE ARE FOLLOWING.
JANET YELLEN MAKING SOME NEWS AND SO IS THE BIDEN
ADMINISTRATION. AN EXECUTIVE ORDER WOULD LIMIT
INVESTMENTS IN CHINA. WE HAVE BEEN LIMITING
INVESTMENTS TO SOME EXTENT AND BLOCKING TECHNOLOGY FROM CHINA.
HOW MUCH FURTHER WOULD THIS GO?
>> IT'S A SHOT ACROSS THE BOW. IT'S AN EXTRAORDINARY SITUATION
WHERE THE TREASURY SECRETARY CAN SAY WE WANT TO PUT OUR
NATIONAL SECURITY CONCERNS
FIRST WITH CHINA AND EVERYBODY GOES WOO AS IF THAT'S NOT A
STATEMENT THAT YOU'D EXPECT FROM THE ADMINISTRATION.
PUTTING MEET ON THE BONE OF AN INCREASED UNEASE ABOUT WHAT THE
U.S. DOES IN TERMS OF INVESTING IN
THE ECONOMY OF AN ADVERSARY. AND ALSO WHAT WE DO WITH OUR
SENSITIVE TECHNOLOGY. SEMI CONDUCTORS, AI, QUANTUM
COMPUTING. THE RISK IS ARE WE GOING TO
SEND THIS TECHNOLOGY TO CHINA AND ALLOW THEM TO PIGGYBACK OFF
OF U.S. INNOVATION AND DO SOMETHING TO
THEIR OWN ENDS THAT WOULD PUT THE U.S. AT A DISADVANTAGE.
>> WHAT SHE SAID TODAY, FOR JANET YELLEN AS AN ECONOMIST
WAS EXTRAORDINARY BECAUSE NATIONAL SECURITY INTERESTS SHE
SAID ARE MORE IMPORTANT THAN ECONOMIC INTEREST. >> NATIONAL
SECURITY IS OF PARAMOUNT IMPORTANCE IN OUR RELATIONSHIP
WITH CHINA. EVEN THOUGH THESE POLICIES MAY
HAVE ECONOMIC IMPACT, THEY ARE DRIVEN BY STRAIGHTFORWARD
NATIONAL SECURITY CONSIDERATIONS AND WE WILL NOT
COMPROMISE ON THESE CONCERNS EVEN WHEN THEY FORCE TRADE-OFFS
WITH OUR ECONOMIC INTERESTS.
>> ONE THING SHE DID NOT SAY IT IS SHE IS PLANNING TO GO TO
BEIJING. WE DO NOT HAVE A DATE AND IT IS
NOT CONFIRMED. THEY ARE ALL PLANNING TO GO BUT
NO ONE IS ACTUALLY SAYING THEY ARE GOING. WHY?
>> THEY NEVER WANT TO GIVE THE DATE OF A TRIP UNTIL IT IS SET
IN STONE BECAUSE THERE COULD BE SO MANY REASONS THAT THEY WOULD
UPSET OR CANCELED A TRIP. SO ESPECIALLY WHEN YOU ADD IT
SECRETARY OF STATE ANTONY BLINKEN, HE WAS GOING TO GO AND
THAT HE PULLED THAT DOWN BECAUSE OF THE SPY BALLOON.
YOU CAN SEE THAT OBVIOUSLY THEY WILL BE WAITING TO SEE HOW
CHINA RESPONDS TO THIS SPEECH. IT WAS VERY INTERESTING, SHE
SAID IN THE SPEECH NATIONAL SECURITY CONCERNS ARE PARAMOUNT
BUT WE DO NOT WANT TO DECOUPLE. ONE OF THOSE SEEMINGLY OBVIOUS
STATEMENTS, TREASURY SECRETARY SAYS THE WORLD BIGGEST ECONOMY
DOES NOT WANT TO DECOUPLE WITH THE SECOND-BIGGEST ECONOMY,
THAT IS GOOD. THE GLOBAL ECONOMY WILL NOT GO
DOWN THE DRAIN.
BUT IT APPEARED TO BE AND ALL OF BRANCH.
HEY, WE DO NOT WANT TO GO TO ECONOMIC WAR.
WE BELIEVE THERE'S ROOM FOR COMPROMISE.
>> WHEN YOU START TALKING ABOUT PAYING THE PRICE FOR NATIONAL
SECURITY ESSENTIALLY, HOW MUCH SHOULD WE BE PAYING?
THE COUNTRY IS PAYING A LOT THROUGH INFLATION AS A
BYPRODUCT OF THE STANDOFF TO FUND THE WAR IN UKRAINE.
WHAT SHOULD AMERICANS BE PREPARED FOR?
>> THIS IS EASY TO SAY IN A SPEECH AND IT MADE IT MORE
DIFFICULT WHEN THE RUBBER HITS THE ROAD.
THEY ARE LAYING OUT A BROAD ARCHITECTURE FOR WHAT WILL
GUIDE INVESTMENTS AND I THINK IT IS MORE OF A SIGNAL TO U.S.
COMPANIES.
WHEN YOU PLAN OR THINK ABOUT INVESTMENTS IN CHINA, HERE ARE
THE ROADBLOCKS YOU MAY FACE FROM THE U.S. GOVERNMENT.
IN SOME WAYS THIS IS WHAT YOU'VE SEEN WITH SANCTIONS
TOWARD RUSSIA AND CHINA. THERE IS A SELF POLICING
ELEMENT. WE ARE NOT GOING TO TELL YOU
SPECIFICALLY WHAT YOU CAN AND CANNOT DO YET.
THAT MAY COME DOWN THE LINE BUT WE WILL EXPECT U.S.
BUSINESS TO START MAKING THOSE CALCULATIONS AND RETRENCH A
LITTLE FROM CHINA.
>> SPEAKING OF DECOUPLE EMMANUEL MACRON'S OF THE SAME
THING AND WE HAVE PRESIDENT BIDEN GIVING HIM A CALL TO TALK
ABOUT HIS CHINA TRIP.
WAS THIS THE WHITE HOUSE GIVING ALMOST A TALKING TO TO THE
FRENCH PRESIDENT? GIVEN HIS STANCE IN THOSE
INTERVIEWS HE GAVE FOLLOWING THE TRIP?
>> THERE'S A LOT OF CONFUSION ABOUT WHAT EMMANUEL MACRON
MEANT TO SAY IN THE TRIP. HE MADE A COMMENT ABOUT TAIWAN
ESSENTIALLY SAYING THE EUROPEAN UNION >> SHOULD NOT BE INVOLVED.
>>STRATEGIC AUTONOMY.
>> SHOULD NOT BE INVOLVED IN THE CONFLICT AND THAT WAS
INTERPRETED IN SOME WAYS AS HIM BASICALLY SAYING HE'S GOING TO
LEAVE TAIWAN TO ITS OWN FATE. THE USA HAS BACKTRACKED VERY
STRONGLY AGAINST THAT. SO WHAT YOU ARE SEEING WITH
THAT CALL THERE IS MORE OF WE ARE ON THE SCENE PAGE.
DO NOT WORRY, WE ARE ALLIES. HERE'S WHAT WE WANT TO DO
TOWARD TAIWAN. THE FRENCH STATEMENT DID NOT
REPRESENT A CHANGE IN POLICY. FLIP THE CHANNEL BACK TO
REGULAR PROGRAMMING.