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00:00> > THIS IS "BALANCE OF POWER," LIVE FROM WASHINGTON, D.C. JOE: FROM BLOOMBERG'S WASHINGTON , D.C., STUDIOS TO OUR TV AND RADIO AUDIENCES WORLDWIDE, WELCOME TO "BALANCE OF POWER." I'M JOE MATHIEU. TONIGHT, THE SECOND WEEK OF A GOVERNMENT SHUTDOWN, AND NOBODY IS BUDGING. > > THE PRESIDENT IS WELL APPRISED OF THE SHUTDOWN ON CAPITOL HILL, AND HIS POSITION IS VERY CLEAR, THERE IS NOTHING TO NEGOTIATED JUST REOPEN THE GOVERNMENT AND WE CAN TALK ABOUT THE IMPORTANT ISSUES FACING OUR COUNTRY. JOE: IT IS DAY SIX, AND LEADERS ON BOTH SIDES OF THE POLITICAL AISLE ARE DOUBLING DOWN ON THEIR CLAIM THE OTHER STRATEGY. -- BLAME THE OTHER STRATEGY. WHEN COULD THE THREATENED LAYOFFS KICK IN? WE WILL HAVE MORE WHEN HOUSE MAJORITY WHIP TOM EMMER JOINS US AHEAD. AMD'S DEAL WITH OPENAI ADDS FUEL TO THE AI FRENZY UNDERWAY. WE WILL HAVE MORE WHEN ROMAINE BOSTICK JOINS US FOR "POWER MOVES." INDIRECT TALKS BETWEEN HAMAS AND ISRAEL TAKE PLACE IN EGYPT DAYS AFTER HAMAS AGREED TO THE RELEASE OF ISRAELI HOSTAGES DEAD OR ALIVE. WHAT IT MEANS FOR A POSSIBLE CEASE-FIRE DEAL IN GAZA AS THE REGION CLEANSED TEST PREPARES TO MARK TWO YEARS SINCE THE OCTOBER 7 MASSACRE -- AS THE REGION PREPARES TO MARK TWO YEARS SINCE THE OCTOBER 7 MASSACRE. ILLINOIS SUING THE TRUMP ADMINISTRATION OVER ITS PLAN TO SEND IN THE NATIONAL GUARD. WE WILL HAVE THE STATE OF PLAY ON THE TENSE SITUATION ON THE GROUND. BOTH SIDES ARE DIGGING AND BLAMING THE OTHER FOR WHAT COULD BE A MAJOR IMPACT ON THE WASHINGTON LABOR FORCE. VOTES TO REOPEN THE GOVERNMENT SET TO TAKE PLACE IN THE SENATE THIS HOUR. THE PRESIDENT REACTING TO THE SITUATION JUST A FEW MOMENTS AGO, SAYING THIS TO REPORTERS IN THE OVAL OFFICE. > > WILL THAT TRIGGER LAYOFFS? PRES. TRUMP: IT COULD. AT SOME POINT IT WELL. THE DEMOCRATS ARE THE ONES THAT STARTED THIS. IF YOU THINK ABOUT IT, IT'S ABOUT HEALTH CARE TO A LARGE EXTENT. WE WANT GREAT HEALTH CARE FOR PEOPLE, WE DON'T WANT TO GIVE THE MONEY AWAY TO OTHER PEOPLE THAT COME POURING INTO OUR COUNTRY, AND THEY HAVE ALREADY POURED BECAUSE NOBODY IS COMING INTO OUR COUNTRY BECAUSE THE BORDER IS CLOSED. SOME VERY GOOD THINGS CAN HAPPEN WITH RESPECT TO HEALTH CARE. JOE: WE FIND BLOOMBERG'S ERIK WASSON LIVE ON CAPITOL HILL. THAT IS IMPORTANT WHAT WE HEARD FROM THE PRESIDENT CAN WHETHER HE MEANT TO SAY IT OR NOT, REPUBLICANS IN TALKS WITH DEMOCRATS OVER HEALTH CARE. WHAT DOES THAT MEAN FOR THE SHUTDOWN? > > I JUST WAS TEXTING WITH A SCHUMER AIDE, SAYING IT IS NOT ACTUALLY TRUE, TRUMP AND DEMOCRATS ARE NOT SPEAKING, BUT SCHUMER WELCOMES TALKS AND IS WILLING TO MEET IF THE PRESIDENT WILL TALK ABOUT THE EXPIRING OBAMACARE SUBSIDIES. A BIT OF MISCOMMUNICATION POTENTIALLY FROM THE PRESIDENT, BUT DEMOCRATS EMPHASIZING IF THEY COULD GET A DEAL ON OBAMACARE SUBSIDIES, THE GOVERNMENT WOULD OPEN STRAIGHTAWAY. WE FEEL LIKE THIS ABOUT TODAY AT 5:30 WILL FAIL, THOUGH. THIS IS THE FIFTH TIME THEY VOTED ON THE SAME EXACT ALBEIT MAYBE POTENTIAL -- SAME EXACT BILL. MAYBE POTENTIAL HOPE ON THE PRESIDENT'S COMMENT THAT THINGS COULD UNFREEZE. OTHERWISE WE ARE LOCKED INTO A LONG SHUTDOWN. JOE: UNTIL THERE IS A DEAL CAN WE ARE GOING TO VOTE EVERY DAY? DOES THAT REMAIN JOHN THUNE'S PLAN AS WE WALK INTO ANY WEEK? ERIK: WE ASKED HIM THAT AND HE SAID THAT IS THE PLAN. IT IS UNCLEAR IF THE SENATE WILL RECESS NEXT WEEK. SOMEONE EXTRAORDINARY. REMINDED DURING THE TRUMP SHUTDOWN IN 2018 AND 2019 THERE WAS ALSO A RECESS WHEN CONGRESS WAS CHANGING HANDS. DEMOCRATS TOOK OVER THE MIDDLE OF THE SHUTDOWN AND IT WAS ENDED BY THE END OF JANUARY. WE COULD BE AN EXTRAORDINARY SITUATION IF THE STALEMATE CONTINUES. WHAT ABOUT A GUARANTEED UP OR DOWN VOTE ON OBAMACARE, SOMETHING MORE SOLID THAN A PROMISE OF TALKS? IMMIGRANTS WILL VOTE ON THAT DAY SHE SAID THAT IMMIGRANTS -- HE SAID THAT DEMOCRATS WILL VOTE ON THAT. -- WON'T VOTE ON THAT. HE WANTS TO SEE INCOME CAPS. WE WILL SEE WHETHER THESE TALKS POTENTIALLY GO. AS OF RIGHT NOW THE STALEMATE CONTINUES. JOE: SOUNDS LIKE THE STORY HAS NOT CHANGED MUCH SINCE FRIDAY. ERIK WASSON, WE THANK YOU FOR THE UPDATE. HOUSE MINORITY LEADER HAKEEM JEFFRIES IS EXPECTED TO SPEAK TO REPORTERS WITHIN THE HOUR FOLLOWING THE VOTING. WE WILL MONITOR FOR ANY NEWS THAT GETS UNDERWAY. SPEAKER OF THE HOUSE MIKE JOHNSON HAD THIS UPDATE. SPEAKER JOHNSON: HERE IS THE ANSWER -- WHY AREN'T YOU NEGOTIATING? THERE IS NOTHING FOR US TO NEGOTIATE. THE HOUSE HAS DONE ITS JOB. HOUSE REPUBLICANS ARE MEETING WITH CONSTITUENTS' NEEDS AND TRYING TO HELP THEM NAVIGATE THROUGH THIS MADNESS. JOE: LET'S TALK STRATEGY ON THE DEMOCRATIC SIDE. JOINING US WITH MORE ON HOW TO NAVIGATE THIS SHUTDOWN AS A DEMOCRAT IS JIM KESSLER, EXECUTIVE VICE PRESIDENT AT POLICY FOR THIRD RIGHT, A DEMOCRATIC STRATEGIST-- THIRD W AY, DEMOCRATIC STRATEGIST AND VETERAN OF CHUCK SCHUMER'S OFFICE. TRIPPED BEHIND THE SCENES -- YOU CAN LIFT THE VEIL ON THIS PROCESS. YOU HAVE BEEN IN TALKS SURROUNDING SHUTDOWNS WITH THE VERY SAME SENATOR WE'RE TALKING ABOUT. A NEW WEEK. DEMOCRATS THINK THEY HAVE THE MORAL HIGH GROUND AND SODA REPUBLICANS. THE STANDOFF COULD LAST SOMETIME. > > IT COULD, BUT WE HAVE SEEN MOVEMENT IN THE LAST COUPLE HOURS WITH DONALD TRUMP SAYING I'M TALKING TO DEMOCRATS ABOUT HEALTH CARE -- JOE: SPEAKING OUT OF SCHOOL? JIM: WELL, HE IS THE PRESIDENT, SO HE CAN'T BE SPEAKING OUT OF SCHOOL. THAT IS THE SIGNAL -- DONALD TRUMP SAID THE SHUTDOWN IS ABOUT HEALTH CARE. -- DEMOCRATS SAID THE SHUTDOWN IS ABOUT HEALTH CARE. DONALD TRUMP JUST SAID THE SHUTDOWN IS ABOUT HEALTH CARE. MIKE JOHNSON SAID THERE'S NOTHING TO NEGOTIATE ABOUT, BUT JON GRUDEN SAID WE TALKING ABOUT HEALTH CARE -- JOHN THUNE SAID WE ARE TALKING ABOUT HEALTH CARE. THAT WAS THE NEGOTIATING POSITION, THAT WAS THE REDLINE. I FEEL LIKE IF YOU ARE A DEMOCRAT NOW, IF YOU ARE SCHUMER, YOU FEEL THIS IS GOING PRETTY WELL AFTER FIVE OR SIX DAYS. JOE: THEY CALLED THIS THE SCHUMER SHUTDOWN. IS THAT FAIR AND ACCURATE? JIM: IF YOU ARE THE LEADER OF THE SENATE, THAT IS THE PRICE YOU PAY. YOU TAKE THE BLOWS, YOU BECOME THE FACE OF THAT. THERE ARE BENEFITS TO BEING LEADER AND THERE IS DRAWBACKS. FOR HIM IT'S FINE. JOE: I WANT TO ASK YOU ABOUT MOTIVATIONS, SPECIFICALLY WITH CHUCK SCHUMER. WE HEAR EVERY DAY THAT THIS GOES BACK TO MARCH, THE SEEDS FOR THE SHUTDOWN REPLANTED THE LAST TIME HE CAVED TO COME AS THEY SAY, AND UPSET A LOT OF PROGRESSIVES. THEN I HEAR HE IS GOING TO BE PRIMARY BY AOC THAT HE IS AFRAID TO MAKE THE MISTAKE AGAIN. IS HE WORRIED ABOUT BEING PRIMARIED? WHAT IS DRIVING HIM IF NOTHING MORE THAN THAT. JIM: LET'S START WITH THAT AND MOVE BACK TO I HAVE NO IDEA IF HE IS GOING TO RUN IN 2028 OR NOT. IF HE DOES RUN, I DON'T THINK HE'S BEAUTIFUL IN A-- BEATABLE IN A PRIMARY. IIF IT WAS A PRIMARY JUST IN NEW YORK CITY, AOC WOULD HAVE A CHANCE. THERE IS LONG ISLAND, THERE IS WESTCHESTER. SCHUMER HAS BEEN VISITING EVERY SINGLE COUNTY, ALL 62, IN NEW YORK CITY EVERYTHING A YEAR SINCE 1998 -- EVERY SINGLE YEAR SINCE 1998. HE SHOWS UP. I DON'T THINK THERE IS A REALISTIC CHANCE HE COULD BE BEATEN IN A PRIMARY. LET'S GO BACK TO MARCH. SCHUMER'S EXECUTION OF KEEPING THE GOVERNMENT OPEN DID NOT WORK WELL. HE DID NOT COMMUNICATE TO HIS COLLEAGUES, HE PAID A PRICE, THE PARTY GOT VERY UPSET. THE MISTAKE ON THAT HAPPENED EVEN BEFORE BECAUSE HOUSE DEMOCRATS DIDN'T BELIEVE REPUBLICANS HAD THE VOTES TO GET IT EVEN OUT OF THE HOUSE. EVERYONE WAS SHOCKED WHEN THEY DID. SO I THINK PART OF THIS IS IN MARCH THEY THOUGHT THERE WAS GOING TO BE BIPARTISAN NEGOTIATIONS. THERE WERE NOT. THIS HAS BEEN BREWING. WE HAVE BEEN SEEING SEPTEMBER 30 AS THE DATE WHEN THET TWO ARMIES WOULD CLASH FOR THE PAST SIX MONTHS, AND THEY HAVE. JOE: LET'S TALK OFF RAMPS. I SPOKE TODAY WITH NICOLE MALLIOTAKIS, HIS COLLEAGUE IN NEW YORK, WHO HE HAS NOTHING IN COMMON WITH, ALTHOUGH SHE TALKED ABOUT BEING OPEN TO EXTENDING OBAMACARE SUBSIDIES. THE 10TH, WHEN FEDERAL WORKERS WOULD MISS THE FIRST PAYCHECK, AND THEN A FEW DAYS LATER IT WOULD BE THE MILITARY. > > MILITARY WOULD NOT BE PAID ON THE 15TH. WE ARE SEEING THE WOMEN AND INFANTS CHILDREN'S PROGRAM WILL RUN OUT OF MONEY. THAT IS VERY IMPORTANT TO MANY OF OUR CONSTITUENTS. YOU WILL SEE DELAYS AT THE AIRPORT AS A RESULT OF TSA AGENTS NOT GETTING PAID, BEING FRUSTRATED. AND YOU WILL PROBABLY SEE A LOT OF OTHER THINGS UNFOLDING. IN THE ECONOMIC IMPACT, THE GDP WILL BE AFFECTED, CONSUMER SPENDING WILL BE AFFECTED. THIS IS COSTING THE TAXPAYERS $400 MILLION A DAY. JOE: WE KNOW THAT SHUTDOWNS COST MONEY, JIM KESSLER, BUT HOW ABOUT THE PAY CYCLE, THE 10TH AND THE 15TH? THAT DOES LARGE ENOUGH DEMOCRATS TO PASS ONE OF THESE CR--COULD THAT DISLODGE ENOUGH DEMOCRATS TO PASS ONE OF THESE CR'S? JIM: I STILL BELIEVE HEALTH CARE AND OBAMACARE WILL BE THE CRUX. WHEN YOU HAVE A SHUTDOWN FROM EACH SIDE TRIES TO INFLICT AS MUCH PAIN AS POSSIBLE ON THE OTHER SIDE. DEMOCRATS HAVE ONLY ONE TOOL, COMMUNICATIONS AND MESSAGING. REPUBLICANS, DONALD TRUMP, HAVE TONS OF TOOLS. THEY CAN DO RESCISSIONS, THEY CAN DO EXECUTIVE ORDERS, THEY CAN BE MISFIRINGS. AND IT -- MASS FIRINGS. AND WHETHER SOMEONE GETS PAID OR DOESN'T GET PAID, YOU CAN WORK THAT THROUGH WITH EXCESS MONEY. REPUBLICANS ARE GOING TO TRY TO EXERT AS MUCH PAIN TO GET DEMOCRATS TO THE TABLE MORE QUICKLY. I THINK HEALTH CARE BILLS SHOWING UP IN NOVEMBER, WHEN PEOPLE START TO SEE WHETHER PREMIUMS ARE GOING TO COST NEXT YEAR, THAT IS GOING TO BE PRESSURE ON REPUBLICANS. JOE: HOW ABOUT MASS LAYOFFS? HOW ABOUT ANY LAYOFFS? YOU SAW THE GRIM REAPER VIDEO? JIM: RIGHT. JOE: DOES THAT POISON THE WELL AND PROLONG THE SHUTDOWN? JIM: POSSIBLY. THE OTHER THING YOU TRY TO DO IS WIN THE BATTLE OF REASONABLENESS AND SERIOUSNESS. DEMOCRATS PUT AN OFFER ON THE TABLE, THAT IS HEALTH CARE. THAT PASSES THE REASONABLENESS TEST. THEY SAID THEY WANT TO NEGOTIATE. REPUBLICANS REALLY MADE A MISSTEP THEY DID SOMBREROS AND MUSTACHES ON DEMOCRATIC LEADERS. THAT IS NOT MESSAGE DISCIPLINE, THAT DOES NOT LOOK LIKE SERIOUSNESS. I THINK ULTIMATELY THERE IS GOING TO BE PAIN, THERE IS GOING TO BE LAYOFFS. YOU JUST HEARD DONALD TRUMP TALK ABOUT HEALTH CARE. YOU HEARD JOHN THUNE TALKING ABOUT HEALTH CARE. THE ANSWER IS HEALTH CARE. THERE IS GOING TO HAVE TO BE SOME SOLUTION ON HEALTH CARE AND THESE OBAMACARE SUBSIDIES. AND IN THE END, THERE IS GOING TO BE A DEAL. I GUARANTEE REPUBLICANS ON THE FAR RIGHT ARE GOING TO HATE IT, DEMOCRATS ON THE FAR LEFT ARE GOING TO HATE IT. THERE IS GOING TO BE PAIN WHEN THERE IS A DEAL, TOO. JOE: WHICH MEANS THEY DID THEIR JOB. IF THAT IS THE CASE AND THEY HAVE A DEAL, IS CHUCK SCHUMER'S STAR RISING INSIDE THE PARTY? I KEEP HEARING A LOT ABOUT GENERATIONAL TURNOVER WITH DEMOCRATS. JIM: YEAH, LOOK, I THINK IT IS A RESET FOR HIM. LOOK, ULTIMATELY THE REPORT CARD IS GOING TO BE THE MIDTERMS. DEMOCRATS FEEL THEY ARE DOING PRETTY WELL, AND CERTAINLY IN THE HOUSE IN THE MIDTERMS. SCHUMER HAS SOME CONFIDENCE IN THE SENATE. COMING OUT WINNING ON HEALTH CARE WOULD BE A HUGE VICTORY FOR SCHUMER. JOE: WE GOT A STATEMENT FROM CHUCK SCHUMER ABOUT THIS IDEA THAT THERE HAS BEEN A CONVERSATION UNDER WE WITH -- UNDERWAY WITH DEMOCRATS ON HEALTH CARE. " TRUMP'S CLAIM ISN'T TRUE, BUT IF HE IS FINALLY READY TO WORK WITH DEMOCRATS, WE WILL BE AT THE TABLE." JIM KESSLER, THANK YOU. DEMOCRATIC STRATEGIST AND EXECUTIVE VICE PRESIDENT AT THE WAY. AMD LANDING A BLOCKBUSTER DO WITH OPENAI, PRESENTING A HIGH-STAKES TEST THAT COULD LAND TENS OF BILLIONS IN NEW REVENUE, AND THE CHALLENGE TO NVIDIA, WHICH DOMINATES THE INDUSTRY. HE WAS LISA SU ALONGSIDE THE OPENAI PRISON EARLIER TODAY ON --OPENAI PRESIDENT EARLIER TODAY ON "BLOOMBERG TECH." > > IT IS ABOUT WHO HAS THE MOST COMPUTER AND HOW FAST WE CAN GET IT ONLINE. > > SO MUCH OF THE ECONOMY IS GOING TO BE LIFTED AND DRIVEN BY PROGRESS, I. WE ARE HEADING TO WORLD BY DEFAULT THAT LOOKS LIKE A DESERT, THERE IS NOT ENOUGH COMPUTE TO GO AROUND. WE ARE TRYING TO BUILD AS MUCH AS POSSIBLE. JOE: THIS IS THE NEWS WE WOKE UP TO THIS MORNING. WE TO "POWER MOVES" WITH ROMAINE BOSTICK. THIS WAS AN EXCLUSIVE RALLY. ROMAINE: AN EXPLOSIVE RALLY, AND IT WAS A GREAT STORY IN THE BLOOMBERG TERMINAL ABOUT HOW MUCH OPENAI HAS BECOME THE BIG WHALE IN THIS MARKET. WHEN IT SPEAKS, IT MOVES MARKETS. THEY ANNOUNCED THEY WOULD INVEST IN AMD. THE IDEA THAT CYCLICAL, SIX GIGAWATTS OF AI COMPUTING POWER. BUT THAT IS A BIG DEAL. HALF OF WHAT WE SAW WITH REGARDS TO THE DEAL THAT OPENAI MADE WITH NVIDIA. THIS ALSO CAME ON THE DAY WHEN OPENAI WAS ACTUALLY HOLDING A DEVELOPERS CONFERENCE, COMPLETELY SEPARATE FROM WHAT WAS GOING ON WITH AMD. DURING THE CONFERENCE THEY STARTED TO TALK A LOT ABOUT SOME OF THE THIRD-PARTY SERVICES THAT ARE BEING INTEGRATED INTO A LOT OF THEIR PRODUCTS. MOVED SHARES OF EXPEDIA, THE TRAVEL COMPANY, QUITE A FEW OTHER NAMES AS WELL. EVEN CISCO AND MATTEL GOT BIDS IN THE DAY AS WELL. THE IDEA THAT THIS IS JUST NAI TRADE -- ISN'T JUST AN AI TRADE. IT IS IN OPENAI TRADE AND THAT IS WHAT IS POWERED THIS MARKET TO ANOTHER RECORD HIGH. YOU SAW THAT IN THE S & P 500, THE NASDAQ 100, THE RUSSELL 2000. RECORD HIGHS ALL AROUND ONCE AGAIN LARGELY DUE TO THAT AI TRADE. BUT THERE IS SOME CONCERN OUT THERE -- I THINK YOU SAW THAT REFLECTED IN WHAT WE SAW IN THE BOND MARKET TODAY, JUMP IN YIELDS NOT ONLY HERE IN THE U.S., BUT QUITE FRANKLY, AROUND THE WORLD, CONCERNS ABOUT SOVEREIGN DEBT, CONCERNS ABOUT FISCAL POLICY. THAT MATTERS A BIG DEAL HERE IN THE U.S. ON DAY SIX OF THE U.S. GOVERNMENT SHUTDOWN. JOE: FASCINATING STUFF, ROMAINE, AS WE KEEP OUR EYES ON THE MARKETS. ROMAINE BOSTICK CAN WE THANK YOU FOR BEING WITH US EVERY EVENING ON "BALANCE OF POWER." WE WILL CONTINUE OUR CONVERSATION ON THE GOVERNMENT SHUTDOWN AND WHAT IS NEXT FOR CONGRESS WITH VOTES IMMINENT IN THE SENATE. WE WILL BE JOINED BY HOUSE MAJORITY WHIP TOM EMMER. ISRAEL AND HAMAS BEGIN IN DIRECT TALKS IN EGYPT AS THE TRUMP ADMINISTRATION PUSH BOTH SIDES FOR A DEAL. WE WILL DISCUSS WITH JANE HARMAN NEXT ON "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. ♪ PRES. TRUMP: WE JUST ABOUT EVERY NATION WORKING ON THIS DEAL AND TRYING TO GET IT DONE. SOMETHING YOU COULD SAY 3000 YEARS, IF YOU LOOK AT IT IN CERTAIN WAYS, OR CENTURIES. THIS IS A DEAL THAT INCREDIBLY EVERYONE JUST CAME TOGETHER. NO, ISRAEL'S BEEN GREAT. IF CERTAIN THINGS AREN'T MET, WE AREN'T GOING TO DO IT. I THINK WE ARE DOING VERY WELL, AND I THINK HAMAS HAS BEEN AGREEING TO THINGS THAT ARE VERY IMPORTANT. JOE: IT'S "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. I AM JOE MATHIEU. THE PRESIDENT SPEAKING IN THE LAST HOUR AND PROVIDING AN UPDATE ON INDIRECT TALKS BETWEEN ISRAEL AND HAMAS AS PART OF A RENEWED PUSH TO END THE WAR IN GAZA. MEETINGS BEGAN IN CAIRO. JOINING US WITH HER REACTION IS JANE HARMAN, FORMER DEMOCRATIC CONGRESSWOMAN FROM CALIFORNIA, FORMER RANKING MEMBER OF THE HOUSE AND DILIGENCE COMMITTEE. ALWAYS A PLEASURE TO HAVE YOU IN PERSON. I GO BACK TO A WEEK AGO, BENJAMIN NETANYAHU WAS IN WASHINGTON FOR MEETINGS WITH THE PRESIDENT. THEY HELD A BILATERAL NEWS CONFERENCE TO ANNOUNCE A DEAL. NO QUESTIONS WERE TAKEN THAT DAY. I THINK A LOT OF AMERICANS WERE SURPRISED TO SAY THAT COULD STILL BE REQUIRED. I THOUGHT THIS WAS UP OR DOWN FROM HAMAS ON FRIDAY, THEY SAID THEY WOULD RELEASE THE HOSTAGES. WHERE ARE WE? JANE: WE ARE GETTING CLOSER. BUT THIS IS VERY COMPLICATED, AS THE PRESIDENT SAID IN THAT CLIP. 3000 YEARS OF HISTORY IS A LONGTIME, EVEN OLDER THAN I AM, FOR GOD SAKE. THIS IS WHERE DONALD TRUMP'S SKILLS REALLY MATTER. HE IS THE BIBI WHISPERER. THE BACK STORY ABOUT THAT MEETING LAST WEEK IZZY CAME WITH HIS DEAL AND HE SAID YOU ARE GOING TO AGREE TO THIS, AND ALSO YOU ARE NOT GOING TO -- ANNEX THE WEST BANK. I THINK THESE THINGS HAVE CREATED A BIG START. AS I MENTIONED TO YOU, JOE, I WAS IN SAUDI ARABIA LAST WEEK. I WAS AT A MIDDLE EAST CONFERENCE WITH FOREIGN MINISTERS FROM THE WHOLE ARAB WORLD, AND THEY ARE ALL IN. I THINK THEY ARE THE HAMAS WHISPERER. IF THIS THING KEEPS MOVING, THERE ARE A LOT OF DETAILS THAT HAVE TO BE WORKED OUT. BUT THE END RESULT, IF THE HOSTAGES ARE RETURNED AND THERE IS A CEASE-FIRE, AND THERE IS NEW GOVERNANCE, AND THERE IS A PATH TO TWO STATES, THIS IS ABSOLUTELY HUGE. JOE: THAT'S A LOT TO GET DONE IN A PRETTY SHORT PERIOD OF TIME. THE PRESIDENT SAID HE WANTS THIS DONE QUICKLY, KNOWING THE NOBEL PEACE PRIZE WILL BE ANNOUNCED ON FRIDAY. I DON'T KNOW IF IT COULD BE DONE THAT QUICKLY. A COUPLE THINGS NEED TO BE ESTABLISHED, INCLUDING THE ACTUAL RELEASE OF HOSTAGES. WE HAVE SEEN PRETTY HORRIFIC DISPLAYS IN THE RELEASE OF HOSTAGES BEFORE. WHAT FORM SHOULD THEY TAKE? DOES THAT REQUIRE A SEPARATE NEGOTIATING PARTY? BRING US INSIDE THE STOCKS. JANE: I'M OBVIOUSLY NOT INSIDE THOSE TALKS, BUT IT IS GOING TO BE PRETTY CLEAR IS THE --PRETTY GRISLY EXPERIENCE F THERE WILL ALSO BE A RELEASE OF A LARGE NUMBER OF PALESTINIAN PRISONERS, BOTH OF THOSE CONVICTED OF EXTREME CRIMES, BUT SOME PICKED UP DURING THE WAR IN GAZA. THERE IS A FORMULA WORKED OUT FOR THAT. BUT I THINK THESE HOSTAGES WILL BE IN BAD SHAPE. IT IS TWO YEARS TOMORROW. THAT HAPPENS TO BE MY OLDEST SON'S BIRTHDAY. IT IS DIFFICULT TO CELEBRATE THOSE TWO THINGS ON THE SAME DAY. BUT MY POINT IS THAT I THINK WITH THE PUSH FROM PRESIDENT TRUMP PERSONALLY, MAY HE PLEASE CONTINUE TO STAY ENGAGED IN THIS, AND FROM THE SUNNI ARAB STATES ON HAMAS -- REMEMBER HAMAS HAS BEEN HOUSED, MANAGEMENT AND LEADERSHIP, IN QATAR ALL THESE YEARS. AND THE FACT THAT NEGOTIATIONS ARE GOING ON RIGHT NOW ALSO MATTERS. JOE: HAMAS IS ESSENTIALLY BEING ASKED TO ELIMINATE ITSELF AS A POLITICAL ENTITY THE END OF THE STOCKS. THAT IS WHY IT IS TAKING SO LONG. AND THERE ARE QUESTIONS ABOUT WHAT SHOULD REPLACE HAMAS. TO WHAT EXTENT SHOULD THE U.S. BE INVOLVED IN THAT? JANE: WELL, THE U.S. IS INVOLVED, BUT HAMAS IS ELIMINATED AS AN ENTITY. THE SENIOR IDF FOLKS ADVISED BIBI NETANYAHU LAST SUMMER THAT HAMAS DID NOT HAVE THE CAPABILITY TO HARM ISRAEL ANYMORE. BOTH ISRAEL AND WE HAVE BEEN VERY HELPFUL IN DISARMING BOTH THE PROXY GROUPS AROUND IRAN, CREATED BY IRAN, AND IRAN. THIS IS THE MOMENT WHERE THE STARS AND THE MOON ARE ALIGNED. HAMAS DOESN'T HAVE A LOT OF LEVERAGE HERE. IT DOESN'T HAVE CARDS. IF THEY WANT SAFE HAVEN OUT OF GAZA, THEY BETTER BE PAYING ATTENTION HERE. AND THERE IS A CHANCE TO PUT MUCH BETTER GOVERNANCE INTO GAZA AND MAYBE ACROSS THE WEST BANK AND MAYBE CONNECTED THEM, WHICH WAS THE ORIGINAL IDEA. JOE: WE HAVE TALKED ABOUT A POSSIBLE TRANSITIONAL 30 AND 20 BLAIR -- TRANSITIONAL AUTHORITY AND TONY BLAIR AND SO FORTH. THE DISPLACEMENT OF PALESTINIANS MIGHT BE SOMETHING THAT IS REQUIRED, OR AT LEAST THE MOVEMENT TO DIFFERENT PARTS OF GAZA. HOW DO WE ORCHESTRATE SUCH A THING? DO WE BUILD ON TOP OF RUBBLE? DO WE CLEAR IT ALL OUT? JANE: NOT MY STRONG SUIT, BUT THE DISPLACEMENT OF PALESTINIANS OUT OF GAZA IS A NONSTARTER. THEY DESERVE TO LIVE IN THEIR HOMELAND. AND FRANKLY IF THERE WERE GOOD GOVERNANCE AND IMPACT, THEY DESERVE TO HAVE A STATE. NOT TOMORROW MORNING, BUT LIVING IN PEACE SIDE-BY-SIDE WITH ISRAEL IS THE BEST GUARANTEE OF ISRAEL'S SECURITY. ONE THING THAT COULD HAPPEN, JOE, IS TO AGREE TO SOME OF THIS STUFF, BIBI NETANYAHU MAY LOSE A FEW CRUCIAL RIGHT-WING MIN ISTERS. HE MAY BE FORCED TO FORM A NEW COALITION. THAT WOULD BE GOOD NEWS FOR ISRAEL AND BIBI. IF YOU WERE GUARANTEED TO SERVE THROUGH HIS TERM AND MAYBE THERE WOULD BE SOME RESOLUTION TO THESE PENDING CONVICTIONS -- CONVICTIONS -- CHARGES AGAINST HIM, THAT COULD BE HIS PATH TO THE NOBEL PEACE PRIZE. JOE: HOW ABOUT THAT? YOU MIGHT'VE HEARD WE BLEW UP A FOURTH BOAT OUT OF VENEZUELA. EXTENDING THIS STREAK OF BLOWING UP BOATS THAT ARE SAID TO BE COMMANDEERED BY NARCO TERRORISTS TRANSPORTING DRUGS TO THE UNITED STATES, WHICH MAY WELL BE THE CASE. YOU SEE THE LATEST ONE IF YOU ARE WITH US ON BLOOMBERG TV AND YOUTUBE. THERE IS NOTHING LEFT OF IT WHEN WE WERE DONE. BUT THIS QUESTION ABOUT WORK HOURS ON CAPITOL HILL. WE HAVE GOT ABOUT A MINUTE LEFT. TO WHAT EXTENT SHOULD CONGRESS BE INVOLVED? JANE: CONGRESS SHOULD BE INVOLVED IN ALL OF THIS. IT IS CONGRESS'S ROLE TO DECLARE WAR, AND CONGRESS HASN'T PASSED AN AUTHORIZATION TO USE MONETARY FORCE SINCE 2001 -- I VOTED FOR IT -- WELL, SINCE 2002, IRAQ AND AFGHANISTAN. THE IRAQ ONE HAS BEEN REPEALED, THE AFGHANISTAN ONE, THREADBARE ONE, IS STILL USED. THIS MAKES NO SENSE. CONGRESS, BY THE WAY, ISN'T IN BUSINESS THIS WEEK. IN MY TWO SECONDS, CONGRESS SHOULD HAVE AN OPINION ON THIS. WHAT I WORRY ABOUT IS WE HAVEN'T PROVIDED INFORMATION ON HOW WE CHOOSE THESE BOATS, AT A MINIMUM. IF WE DON'T, TO SOME PEOPLE, LOOK A LITTLE RANDOM AND MAY EXPOSE US TO SIMILAR TACTICS BY OTHERS. I THINK THERE IS A STORYLINE. BUT WE HAVE TO KNOW WHAT THE STORYLINE IS. JOE: JANE, GREAT TO SEE YOU. JANE HARMAN, FORMER DEMOCRATIC CONGRESSWOMAN FROM CALIFORNIA. WE WILL SPEAK TO CONGRESSMAN TOM EMMER NEXT ON BLOOMBERG TV AND RADIO. ♪ JOE: THIS IS "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. I AM JOE MATHIEU. THANKS FOR JOINING US ON DAY SIX OF THE GOVERNMENT SHUTDOWN. AT THE WHITE HOUSE THIS EVENING, A BIT OF A REVELATION FROM THE PRESIDENT TELLING REPORTERS THAT LABS COULD BE IMMINENT RIGHT BEFORE SAYING WHAT IS AT THE CENTER OF THE GOVERNMENT CLOSURE. > > IF THE VOTE FAILS IN THE SENATE, WILL THAT TRIGGER LAYOFFS? PRES. TRUMP: IT COULD. AT SOME POINT IT WILL. THE DEMOCRATS ARE THE ONE THAT STARTED THIS. IF YOU THINK ABOUT IT, IT IS ABOUT HEALTH CARE TO A LARGE EXTENT, IT IS ABOUT WE WANT GREAT HEALTH CARE FOR PEOPLE, WE DON'T WANT TO GIVE THE MONEY AWAY TO OTHER PEOPLE THAT COME POURING INTO OUR COUNTRY, AND THEY HAVE ALREADY POURED BECAUSE NOBODY'S COMING INTO OUR COUNTRY ANOTHER WAY OF THE BORDER TOTALLY STOPPED. WE ARE SPEAKING WITH THE DEMOCRATS. SOME VERY GOOD THINGS COULD HAPPEN WITH RESPECT TO HEALTH CARE. JOE: JOINING US ON "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO IS HOUSE MAJORITY WHIP CONGRESSMAN TOM EMMER, REPUBLICAN FROM MINNESOTA. GREAT TO SEE YOU. WELCOME BACK TO BLOOMBERG. IS THE PRESIDENT WRITE ABOUT TALKING WITH DEMOCRATS? REP. EMMER: ACTUALLY, THE PRESIDENT IS THE CHIEF NEGOTIATOR -- AND THANKS FOR HAVING ME. THE ONE THING WE ARE UNITED ON IS YOU HAVE GOT TO REOPEN THE GOVERNMENT TO BE DOING ANYTHING WITH WHATEVER THE TOPIC MAY BE. WHEN IT COMES TO HEALTH CARE, DONALD TRUMP HAS BEEN A LEADER IN THIS AREA. HE WANTS TO MAKE SURE THESE PROGRAMS -- THE INTEGRITY IS MAINTAINED FOR THE PEOPLE THEY ARE INTENDED FOR FULL DEMOCRATS WANT TO PUT ILLEGALS BACK ON TAXPAYER-FUNDED HEALTH CARE. THAT IS A NONSTARTER FOR THE PRESIDENT. GOT TO REOPEN THE GOVERNMENT AND HAVE THOSE NEGOTIATIONS. JOE: JUST TO HAVE A SENSE OF WHAT IS GOING ON, WE HAVE TALKED TO A COUPLE OF SENATORS ABOUT THEIR VERY INFORMAL CONVERSATIONS, SOME OF WHICH ARE HAPPENING ON THE SENATE FLOOR. IS THAT WHAT THE PRESIDENT IS REFERRING TO, OR IS THE LEADERSHIP ENGAGED ON BOTH SIDES OF THE AISLE? REP. EMMER:, NOTE LITERALLY WITH THE NEGOTIATIONS IN THE HOUSE TOOK PLACE IN SEPTEMBER. SEPTEMBER IT WAS NEGOTIATED WE WOULD HAVE A SEVEN-WEEK CLEAN CR, NO PARTISAN RIDERS, NOTHING THAT WOULD CAUSE A PROBLEM, CURRENT FUNDING LEVELS SO WE COULD GET BACK TO A REGULAR WATER APPROPRIATIONS PROCESS. AFTER THAT NEGOTIATION WAS DONE, THE HOUSE DID ITS JOB, SENT THE CLEAN CR TO THE SENATE CAN IN PLENTY OF TIME. I THINK WE SEND IT OVER ON SEPTEMBER 21= PLENTY OF TIME FOR THE SEPTEMBER 30 AT MIDNIGHT DEADLINE. CHUCK SCHUMER DECIDED WITH HIS DEMOCRAT COLLEAGUES IN THE SENATE, BECAUSE THEY HAVE GOT TO GIVE US SEVEN VOTES AT LEAST IN ORDER TO MAKE CLOTURE SO YOU CAN GET THE BILL TO THE FLOOR, DECIDED THEY WEREN'T GOING TO PASS IT BECAUSE THEY WANT ANOTHER .5 TRILLION IN ADDITIONAL SPENDING. THEY WANT TO PUT ILLEGALS BACK ON TAXPAYER-FUNDED HEALTH CARE. THEY WANT TO GUT THE $50 BILLION RURAL HEALTH CARE THAT REPUBLICANS GREETED IN THE WORKING, HIS TAX-CUT ACT IN JULY. THESE ARE NONSTARTER'S. THERE'S NO NEGOTIATION TAKING PLACE IN THE SENATE. IF SENATORS ARE HAVING CONVERSATIONS AMONGST THEMSELVES, I SUSPECT THE CONVERSATIONS ARE YOU GOING TO REOPEN THE GOVERNMENT, YOU GOT TO DO IT RIGHT AWAY BEFORE YOU HURT A LOT OF PEOPLE. JOE: OK, SO IT SOUNDS LIKE THOSE CONVERSATIONS ARE NOT HAPPENING ON THE HOUSE SIDE. IT'S AN INTERESTING SITUATION THAT WE ARE IN WITH THESE VOTES TAKING PLACE DAY AFTER DAY. ARE YOU WORKING ON DEMOCRATIC SENATORS YOURSELF? IS THE WHITE HOUSE LOBBYING DEMOCRATS? ONE OF THESE VOTES -- YOU JUST SAID IT CAN YOU NEED A HANDFUL OF DEMOCRATS TO GET THIS PASSED. HOW DOES THIS END? REP. EMMER: IT ENDS WHEN CHUCK SCHUMER AND THE DEMOCRATS COME TO THEIR SENSES. IN MY STATE, THERE WAS 100,000 WOMEN, INFANTS, AND CHILDREN THAT ARE GOING TO BE HARMED WHEN THE WHIP PROGRAM RUNS OUT OF MONEY, 13,000 NATIONAL GUARDSMEN THAT WON'T GET PAID ON THE 15TH, 33,000 FEDERAL WORKERS THAT AREN'T GOING TO GET PAID. IT ENDS WHEN CHUCK SCHUMER AND DEMOCRATS IN THE SENATE SAY WE HAVE GOT TO REOPEN THE GOVERNMENT AND LET'S GET BACK TO THE TABLE WHERE REPUBLICANS AND DEMOCRATS WERE BEFORE CHUCK SCHUMER SHUT THIS THING DOWN AND LET'S GET THIS DONE, LET'S GET A LONG-TERM FUNDING BILL DONE. JOE: DEFINITELY UNDERSTAND YOUR POINT ON THAT. IF THE PRESIDENT IS TALKING ABOUT A DEAL ON HEALTH CARE, HE SAID VERY GOOD THINGS COULD HAPPEN WITH RESPECT TO HEALTH CARE. YOUR POINT IS THAT IS ONLY AFTER THE GOVERNMENT IS REOPENED. REP. EMMER: I THINK WE ARE ALL UNITED ON THAT. IT IS A VERY SIMPLE PROCESS. I NONPARTISAN CR, SOMETHING THAT CHUCK SCHUMER WAS IN FAVOR OF SIX MONTHS AGO. FORGET THAT FOR A SECOND, IT IS SOMETHING THAT CHUCK SCHUMER AND SENATE DEMOCRATS VOTED FOR 13 TIMES UNDER THE BIDEN ADMINISTRATION. JOE: REPUBLICANS VOTED AGAINST. REP. EMMER: THE ONLY THING THAT IS CHANGE RIGHT NOW IS DONALD TRUMP IS IN THE WHITE HOUSE. THAT IS THE ONLY THING THAT IS CHANGED. THE HOUSE DID ITS JOB. NOW IT IS UP TO CHUCK SCHUMER TO REOPEN THE GOVERNMENT. WE'VE GOT A CONFERENCE COMMITTEE THAT BOTH OF THE HOUSE AND SENATE VOTED ON LAST MONTH WITH REPUBLICANS AND DEMOCRATS WORKING ON THE FIRST THREE APPROPRIATIONS BILLS THAT THEY ARE ALMOST DONE WITH SO THEY CAN MOVE ONTO TO THE NEXT GROUP OF APPROPRIATIONS HILLS. WE HAVEN'T HAD AN INFORMAL CONFERENCE COMMITTEE SINCE 2018. THERE ARE GOOD THINGS THAT ARE HAPPENING UNDER DONALD TRUMP HERE. CHUCK SCHUMER HAS GOT TO GET OUT OF THE WAY AND LET US CONTINUE THESE NEGOTIATIONS. JOE: WE HAVE GOT OUR EYES ON THE SENATE FLOOR AS YOU ARE SPEAKING, AND I KNOW THAT THIS VOTE THAT IS ABOUT TO HAPPEN IS EXPECTED TO FAIL. THE WHITE HOUSE SAYS IF THAT IS THE CASE, IT COULD BE AS SOON AS THIS EVENING WE GET THE REDUCTION IN FORCE ANNOUNCEMENTS, LAYOFFS, THAT COULD TURN FURLOUGHS INTO PERMANENT DEPARTURES FOR GOVERNMENT EMPLOYEES FOR SOME THAT IS NOT JU WASHINGTON, BUT POTENTIALLY FEDERAL -- THAT IS NOT JUST WASHINGTON, BUT POTENTIALLY FEDERAL WORKERS AROUND THE COUNTRY. IS THAT HOW YOU FINISH THE WORK OF THE DOGE? REP. EMMER: ACTUALLY, IT HAS NOTHING TO DO WITH DOGE -- JOE: HOW ABOUT THE LAYOFFS? I KNOW YOU ARE UPSET WITH CHUCK SCHUMER -- REP. EMMER: LET'S BE CLEAR. JOE: I KNOW YOU HAVE BEEN VERY CLEAR -- REP. EMMER: IF YOU LET ME FINISH, THE POINT IS CHUCK SCHUMER AND THE DEMOCRATS SHUT IT DOWN AND OUT THE ADMINISTRATION IS GOING TO HAVE TO MAKE DIFFICULT CHOICES IF THEY'RE NOT WILLING TO REOPEN THE GOVERNMENT. UNFORTUNATELY THAT HAS TO DO WITH WORKFORCE AND EVERYTHING ELSE. GOD FORBID THAT THEY DON'T COME TO THEIR SENSES AND PEOPLE GET EVEN MORE HURT. WE HAVE LOST $400 MILLION A DAY BECAUSE OF CHUCK SCHUMER AND THESE DEMOCRATS. QUITE FRANKLY, IF THEY CONTINUE WITH THIS CHARADE, THEY ARE THE ONES WHO ARE GOING TO OWN IT. THEY ALREADY DO. JOE: IF WE DO SEE THE FEDERAL LAYOFFS, DOESN'T MAKE IT HARDER TO REOPEN THE GOVERNMENT? DOES THAT POISON THE WELL? REP. EMMER: WE HAVE GOT NATIONAL GUARDSMEN, TSA, MILITARY SERVICEMEN AND WOMEN. HOPEFULLY CHUCK SCHUMER WILL PUT THOSE PEOPLE IN AMERICANS BEFORE HIS OWN POLITICAL WHIM, TRYING TO PROTECT HIMSELF FROM SOME POTENTIAL PRIMARY IN THE NEXT ELECTION FROM HIS FAVORITE HOUSE MEMBER, MS. OCASIO-CORTEZ. LET'S PUT THE AMERICAN PEOPLE FIRST, CHECK. -- CHUCK. I'M SURE THERE ARE DEMOCRATIC SENATORS THAT ARE GOING TO COME TO THEIR SENSES AND REOPEN THIS THING SO WE CAN GET BACK TO DOING THE WORK OF THE PEOPLE. JOE: IF THAT IS THE CASE, YOU DON'T NEED TO WORRY ABOUT CHUCK SCHUMER. THE WHITE HOUSE IS APPEALING IN SOME CASES DIRECTLY TO DEMOCRATS, IN MANY CASES RETIRING DEMOCRATS, THOSE SERVING IN MORE MODERATE ZONES THAN CHUCK SCHUMER. WHAT WOULD HAPPEN FIRST? YOU DO THIS FOR A LIVING. CAN YOU PEEL OFF A COUPLE DEMOCRATS IN THE SENATE, OR DOES THERE NEED TO BE SOME OTHER DEAL? REP. EMMER: I THINK I WILL START WHERE YOU DID, I DON'T THINK WE DO HAVE TO WORRY ABOUT CHUCK SCHUMER. I THINK CHUCK IS PAST HIS USEFUL LIFE WHEN IT COMES TO LEADING. IT IS CLEAR HE LOST A STEP, THAT HE IS MORE CONCERNED WITH HIS OWN POLITICAL SURVIVAL THAN HE IS WITH HIS COUNTRY. I THINK YOU WILL SEE NEW LEADERSHIP IN THE SENATE AT SOME POINT SOON. AND YES, I DO THINK THERE ARE DEMOCRAT SENATORS WHO REALIZE THIS IS RIDICULOUS, THIS IS FOOLISH, THIS IS NOT A PLACE YOU WANT TO BE, TRYING TO REOPEN THE GOVERNMENT IN RETURN FOR .5 TRILLION IN A NEW SPENDING, PUTTING ILLEGALS BACK ON TAXPAYER-FUNDED HEALTH CARE. THESE ARE NOT WINNING ARGUMENTS FOR DEMOCRATS, SO YES, I DO BELIEVE THERE ARE SEVERAL DEMOCRAT SENATORS WHO WILL ULTIMATELY REOPEN THE GOVERNMENT. JOE: OK, WELL, THERE YOU GO, SOUNDS LIKE WE MIGHT BE MAKING PROGRESS HERE. WILL IT TAKE THE HAND OF THE PRESIDENT AND THE THREAT OF LAYOFFS TO DO THAT? THE CRIES OF SCHUMER SHUT DOWN DON'T SEEM TO BE CHANGING ANY MINES. REP. EMMER: ACTUALLY, THEY SHOULD BE LISTENED TO OUR SERVICEMEN AND WOMEN, TSA AGENTS, FEDERAL CONTRACTORS, FEDERAL EMPLOYEES. THE ADMINISTRATION IS GOING TO HAVE TO MAKE WHATEVER DIFFICULT CHOICES HAVE TO BE MADE AS A DIRECT RESULT OF CHUCK SCHUMER AND SENATE DEMOCRATS RIGHT NOW, REFUSAL TO REOPEN THE GOVERNMENT. THEY ARE THE ONES THAT OW THEY ARE THE ONES THATN THIS CAN END THIS, LET'S HOPE THEY DO IT TONIGHT. JOE: REPUBLICAN CONGRESSMAN TOM EMMER, HOUSE MAJORITY WHIP ON BLOOMBERG TV AND RADIO. HAKEEM JEFFRIES, DEMOCRATIC LEADER IN THE HOUSE, BRIEFING REPORTERS, AS WE WATCH THESE FOLKS TAKE PLACE IN THE SENATE. THAT IS A LIVE VIEW ON BLOOMBERG TV AND YOUTUBE OF LEADER JEFFRIES. OF COURSE THE HOUSE IS OUT OF SESSION THIS WEEK. RETURN TO ILLINOIS NOW, WHERE GOVERNOR JB PRITZKER AND CHICAGO MAYOR BRANDON JOHNSON BLASTED FEDERAL AUTHORITIES FOLLOWING A TUMULTUOUS WEEKEND, AFTER FILING A LAWSUIT TO STOP THE DEPLOYMENT OF NATIONAL GUARD TROOPS IN THE CHICAGO AREA. HERE IS PART OF WHAT THEY HAD TO SAY. GOV. PRITZKER: LET ME BE CLEAR, DONALD TRUMP IS USING OUR SERVICE MEMBERS AS POLITICAL PROPS AND AS PAWNS IN HIS ILLEGAL EFFORT TO MILITARIZE OUR NATION'S CITIES. MAYOR JOHNSON: WE DO NOT NEED OR WANT THE NATIONAL GUARD TO POLICE OUR STREETS. WE WANT TO CONTINUE OUR HOLISTIC STRATEGIES AND PARTNERSHIPS THAT HAVE LED TO THE SAFEST SUMMER IN THE CITY OF CHICAGO IN 60 YEARS. JOE: THE ILLINOIS SUITS SAYS PRESIDENT TRUMP IS USING THE MILITARY TO "PUNISH HIS POLITICAL ENEMIES." THE ADMINISTRATION CLAIMS THE CITY IS CRIME-RIDDEN AND EXISTING WATER ENFORCEMENT AGENCIES ARE INCAPABLE OF PROTECTING FEDERAL POVERTY. JOINING US, BLOOMBERG'S WENDY BENJAMINSON, WATCHING NOT ONLY ILLINOIS, BUT PORTLAND, OREGON, WHICH THE PRESIDENT SAYS IS BURNING TO THE GROUND. YOU ARE SMILING. IF YOU LOOK AT IMAGES FROM THESE CITIES, YOU DON'T SEE FLAMES REACHING TO THE SKY. WHAT IS GOING ON? WENDY: I'M GOING TO QUOTE THE PORTLAND MAYOR -- OREGON GOVERNOR, PORTLAND IS NOT BURNING TO THE GROUND. THESE PEOPLE ARE WAVING FLAGS AND THINGS LIKE THAT. THERE MAY HAVE BEEN SOME SKIRMISHES OR SOMETHING, BUT IT IS NOTHING, ACCORDING TO THE PORTLAND MAYOR AND PORTLAND POLICE, NOTHING THAT THEY CAN'T HANDLE. AND YET THE PRESIDENT AND HIS AIDES ARE TRYING VERY HARD TO GET THE NATIONAL GUARD INTO PORTLAND, THEY TRIED FIRST WITH THE OREGON NATIONAL GUARD. A TRUMP-APPOINTED FEDERAL JUDGES SAID THIS IS UNTETHERED TO REALITY. SO WE TRIED TO GET THE CALIFORNIA NATIONAL GUARD, -- SO HE TRIED TO GET THE CALIFORNIA NATIONAL GUARD, WHICH HAD ALREADY FEDERALIZED IN JUNE IN LOS ANGELES, AND THIS JUDGE SAID YOU CAN'T DO THAT, AND SAID NO TO ANY NATIONAL GUARD FROM ANY STATE GOING OUT. NOW TRUMP IS TALKING ABOUT THE INSURRECTION ACT, WHICH WOULD ALSO BE CHALLENGED IN COURT, BECAUSE YOU WOULD HAVE TO PROVE THERE IS AN INSURRECTION GOING ON, NOT PEOPLE EXERCISING THEIR RIGHT TO FREE ASSEMBLY AND PETITION THE GOVERNMENT. AND NOW HE IS GETTING THE TEXAS NATIONAL GUARD TO GO TO ILLINOIS AFTER GOVERNOR PRITZKER SAID NO TO USING THE ILLINOIS NATIONAL GUARD. SO ALL OF THIS IS TIED UP IN COURT. THE WHITE HOUSE HAS SHOWN NO INCLINATION THEY'RE GOING TO BACK DOWN FROM THIS AT ALL. JOE: YOU MENTIONED THE JUDGE IN THIS CASE. THIS IS A JUDGE THE PRESIDENT REFERRED TO AS A MAN. THIS IS A WOMAN WHO HAS A DISTINGUISHED CAREER AS A FEDERAL PROSECUTOR, WORKED WITH KEN STARR ON THE CLINTON IMPEACHMENT AND INTERVIEWED MONICA MINSKY. -- MONICA LEWINSKY. WHAT DOES THAT TELL US? WENDY: IT TELLS US SHE HAS READ THE CONSTITUTION -- JOE: BUT HE MAY NOT GET A BREAK FROM ANOTHER CONSERVATIVE. WENDY: WHAT HE DID WITH THE JUDGE ON THE ILLINOIS CASE, SAID SHE WAS FRUSTRATED BY THE LACK OF ANSWERS SHE WAS GETTING FROM THE ADMINISTRATION, SPECIFIC FACTUAL ANSWERS TO HER QUESTIONS ABOUT HOW BAD IT IS IN ILLINOIS. IT IS A BIG CITY AND ARE PROTESTS, PEACEFUL AGAIN, PROTESTS AGAINST THE IMMIGRATION CRACKDOWNS. WHAT SHE SAID WAS GIVE ME A COUPLE DAYS TO LOOK AT THIS AND WE WILL GET BACK TO YOU ON THURSDAY. THAT IS STILL PENDING. SHE URGED THE ADMINISTRATION TO WAIT ON SENDING THE NATIONAL GUARD IN UNTIL THURSDAY. WHETHER THAT WILL HAPPEN OR NOT IS STILL UP IN THE AIR. JOE: INTERESTING TIMING. A NEW SUPREME COURT -- WENDY: ALL GOING TO LAND ON JOHN ROBERTS'S LAP. JOE: THANK YOU FOR THE UPDATE ON THIS. WENDY BENJAMINSON WALKING US THROUGH ANOTHER MAJOR STORY, AND ON DAY SIX OF THE GOVERNMENT SHUTDOWN, WE WERE TALKING TO TOM EMMER. WANT TO BRING YOU BACK TO THE HOUSE OF REPRESENTATIVES CAN WEAR DEMOCRATIC LEADER HAKEEM JEFFRIES HAS STARTED A NEWS CONFERENCE WITH REPORTERS. REP. JEFFRIES: THIS HEALTH-CARE CRISIS IS EXACERBATING THAT. > > OK, I SEE YOU. > > THERE IS A NEW FROM CBS NEWS THAT BASICALLY SAYS THAT AMERICANS BY AND LARGE PRETTY MUCH EVENLY DISTRIBUTE BLAME ON REPUBLICANS, DEMOCRATS, AND THEN 30% BLAME BOTH YOU GUYS. WHY DO YOU THINK THEY ARE NOT BLAMING REPUBLICANS FAR MORE IN THE WAY THAT YOU ARE? REP. JEFFRIES: THE OVERWHELMING BALANCE OF PUBLIC SENTIMENT IS REPUBLICANS CONTROL THE HOUSE, SENATE, PRESIDENCY, AND HAVE SHUT THE GOVERNMENT DOWN BECAUSE OF THEIR REFUSAL TO ADDRESS THE HEALTH CARE CRISIS THAT THEY HAVE CREATED. WE ARE STANDING ON THE SIDE OF THE HEALTH CARE OF EVERYDAY AMERICANS, WORKING-CLASS AMERICANS, MIDDLE-CLASS AMERICANS, AND HARD-WORKING AMERICAN TAXPAYERS, AND WE'RE GOING TO CONTINUE TO STAND ON THEIR SIDE, BECAUSE THIS ISSUE MATTERS. LOWERING THE COST OF LIVING MATTERS. MAKING SURE THAT THE HIGH PRICE OF HEALTH CARE DOESN'T CONTINUE TO ESCALATE IN WAYS THAT IS GOING TO BANKRUPT PEOPLE, THAT MATTERS. THAT IS WHY WE ARE IN THIS FINE UNTIL WE WIN THIS FIGHT. > > [INDISCERNIBLE] REP. JEFFRIES: YES. JOE: THAT IS HAKEEM JEFFRIES LIVE ON CAPITOL HILL. WE WILL LET YOU KNOW IF THERE'S ANY MORE NEWS THAT COMES OUT OF THE CONVERSATION. MORE ON THE ONGOING SHUTDOWN WITHOUT POLITICAL PANEL ON "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. JOE: THIS IS "BALANCE OF POWER" ON BLOOMBERG TV AND RADIO. I'M JOE MATHIEU. THANKS FOR JOINING US, AS WE KEEP OUR EYES ON THE SENATE FLOOR. VOTING ON FUNDING BILLS AND CONTINUING RESOLUTIONS WE HAVE BEEN TALKING ABOUT FOR DAYS. THEY BEEN VOTING ON THEM FOR DAYS AND CONTINUE TO FAIL, EXPECTED TO CONTINUE ON DAY SIX OF THE SHUTDOWN. JOINING US, BLOOMBERG POLITICS CONTRIBUTOR RICK DAVIS, REPUBLICAN STRATEGIST, AND JEANNE SHEEHAN ZAINO, VISITING FELLOW AT HARVARD KENNEDY SCHOOL'S ASH CENTER. YOU HEARD OUR CONVERSATION WITH TOM EMMER. IF YOU HAD A DRINKING GAME INVOLVING THE NAME CHUCK SCHUMER -- RICK: I COULDN'T SIT IN THIS CHAIR IF WE HAD A DRINKING GAME. HE IS ON MESSAGE. OBVIOUSLY CHUCK SCHUMER'S FAULT, AND EMMER HAS A PLAN TO OPEN UP THE GOVERNMENT IF JUST CHUCK SCHUMER WOULD COOPERATE. I THINK IT IS MORE COMPLICATED THAN THAT. BUT IT DOES SOUND LIKE THERE IS SOME MOVEMENT. DONALD TRUMP, HIS OWN PUBLICIST HAS BEEN TALKING IN THE WHITE HOUSE THIS AFTERNOON ABOUT GETTING A DEAL ON HEALTH CARE. THAT TELLS ME ONE IMPORTANT THING, THEY ARE STARTING TO READ THE SURVEYS. DONALD TRUMP STARTS EXTOLLING THE VALUES OF ACA, YOU HAVE GOT YOURSELF A CHANGE IN THE ENVIRONMENT. JOE: ISN'T THAT THE TRUTH? CONSIDERING WHERE WE WERE OUTSIDE CONGRESS ON FRIDAY, I'M TRYING TO GET THE QUOTE, JEANNE, IT'S IMPORTANT. "WE ARE SPEAKING WITH THE DEMOCRATS AND SOME VERY GOOD THINGS COULD HAPPEN WITH RESPECT TO HEALTH CARE." CONGRESSMAN TOM EMMER HAD NO IDEA WHAT WE WERE TALKING ABOUT WHEN I BROUGHT THAT DO YOU SUSPECT THE PRESIDENT IS IN TALKS WITH MEMBERS OF THE OTHER PARTY? JEANNE: I DON'T KNOW IF THEY ARE IN TALKS YET. YOU GUYS ARE HAVING TOO MUCH FUN DOWN THERE, I'M VERY JEALOUS, DRINKING GAMES AND ALL. JOE: COME ON DOWN. JEANNE: THANK YOU. I WAS STRICK AS RICK TALKED ABOUT BY WHAT THE PRESIDENT SAID. I BELIEVE HE SAID SOMETHING ALONG THE LINES OF "I AM A REPUBLICAN AND EVEN I SUPPORT HEALTH CARE." I CAN IMAGINE HOW FRUSTRATED THE REPUBLICANS IN CONGRESS MIGHT FEEL HEARING THIS. AND I WOULD HOPE THE PRESIDENT IS NOT IN TALKS WITH THE DEMOCRATS WITHOUT BRINGING THE LEADERSHIP OF THE REPUBLICAN PARTY ALONG. BUT IT IS A SIGN THAT THERE MAY BE A BREAK AND THERE MAY BE A WAY IN WHICH THESE SITES CAN COME TOGETHER. I THINK RICK IS EXACTLY RIGHT, THE PRESIDENT IS LOOKING AT POLLS WHICH SHOW THAT THIS INCREASE -- PEOPLE GET THESE NOTICES AND IN THE NEXT MONTH -- WOULD BE DEVASTATING FOR PEOPLE IN, AND I DON'T SEE HOW REPUBLICANS ARE THE PRESIDENT ALLOW THAT TO HAPPEN. JOE: AS SOMEBODY WHO WORKED WITH JOHN MCCAIN ALL THOSE YEARS, THIS MUST BE A RICH MOMENT TO SEE THE PRESIDENT ENDORSING THE BENEFITS O OBAMACARE AND LOOKING TO EXTEND SUBSIDIES SURROUNDING IT. HE IS GETTING DEMOCRATS PUTTING THAT COMES DOWN ON THE FLOOR. DOES THERE NEED TO BE A DEAL, PROMISE FOR A VOTE? WHAT FORM DOES THIS TAKE WHEN WE ARE HEARING TOM EMMER AND EVEN HAKEEM JEFFRIES -- THE WHITE HOUSE HAS GONE RADIO SILENT ON THEM. RICK: IT IS OBVIOUS THAT ALL ALONG DEMOCRATS COULD'VE VOTED FOR THIS, THEY VOTED FOR A CLEAN CR IN THE PAST, BUT ALL ALONG THEY HAVE SAID GIVE ME SOMETHING ON THESE ACA DEALS. EVEN MAJORITY LEADER THUNE AND HIS LIEUTENANTS HAVE BEEN OUT THERE SAYING WE CAN FIX THIS. WE DON'T WANT TO SEE THE EXPIRATION OF THESE ACA SUBSIDIES. BUT WE WANT TO DO IT DURING THE APPROPRIATIONS PROCESS. SO NOW YOU SEE ALL OF THIS,OH, ONE WE JUST SAY THAT. WHY DON'T WE CUT A DEAL, HAVE THAT HANDLED, HERE IS WHAT WE ARE WILLING TO DO, THERE IS SOME TWEAK TO IT, AND EVERYBODY PUTS THE THUMBS ON THE CR? IT HAS NEVER BEEN THAT COMPLICATED. IT IS JUST GETTING TO A POINT WHERE THE PARTIES ARE LIKE, WE ARE TIED WITH THE CHARADE, TIED WITH THE TALKING POINTS -- TIRED WITH THE CHARADE, TIRED WITH THE TALKING POINTS, WE ARE READY TO GO BACK TO BUSINESS. JOE: JEANNE, DO YOU FEEL MORE OPTIMISTIC WITH WHAT THE PRESIDENT SAID? JEANNE: I AM A MORE OPTIMISTIC WITH GETTING THIS RESOLVED, BUT IN THE LONGER TERM, THEY AGREED TO THIS -- THE GOVERNMENT REOPENS FOR SEVEN WEEKS, AND THEN ARE WE BACK AT SQUARE ONE TOWARDS THE END OF THE YEAR? IN THE MEANTIME WE HAVE TO DO THE NDAA. THERE IS A LOT ON THE CONGRESS'S PLATE BETWEEN NOW AND THE VENETO OF THE YEAR. ONE OF THE BIG CHALLENGES IS WILL THE DEMOCRATS TRUST REPUBLICANS TO KEEP THEIR WORD AFTER THE ISSUE OF RESCISSIONS AND EVERYTHING ELSE? I THINK I'M A LITTLE BIT MORE OPTIMISTIC, BUT EVEN IF WE GET A DEAL HERE, WE HAVE A LONG WAY TO GO UNTIL WE GET A PROCESS BY WHICH WE CAN FEEL COMFORTABLE THAT THE GOVERNMENT CAN STAY OPEN BEYOND A FEW WEEKS. JOE: REPUBLICAN SENATOR MIKE ROUNDS SPEAKING A MOMENT AGO ON THE HELP, "I BELIEVE THE PRESIDENT WHEN HE SAYS THAT. DON'T KNOW IF HE IS TALKING -- DON'T KNOW WHO HE IS TALKING TO, BUT THERE IS NO REASON TO SAY OTHERWISE." CLEARLY A LOT OF THEM WANT TO FIX ISSUES THEY ARE EXPRESSING CONCERNS ON I REMEMBER JOHN MCCAIN AS PART OF THE GANG OF SIX SO MANY TIMES OVER. WHEN DOES THIS BECOME INSTITUTIONALIZED? RICK: I GUESS IS THERE ARE A GROUP OF DEMOCRATS DEALING WITH THE WHITE HOUSE, CERTAINLY DEALING WITH REPUBLICAN LEADERS ON THE SENATE SIDE. WE KNOW THERE ARE BEEN CONVERSATIONS EVEN WITH DEMOCRATS AND REPUBLICANS IN THE HOUSE AND SENATE. MY GUESS IS YOU ONLY NEED FIVE OR SIX OF THESE DEMOCRATS TO SAY, OK, WE HAVE HAD ENOUGH, WE HAVE GOT A DEAL THAT WEEKEND WAS THAT. IT IS NOT GOING TO BE THAT HARD. AND FRANKLY, SOMETIMES THE LAST PEOPLE TO THE TABLE ARE THE LEADERS, BECAUSE THEY HAVE GOT THEIR OWN AGENDA POLITICALLY THEY ARE TRYING TO SCORE SETTLEMENTS WITH. I WOULD SAY, THOUGH, THE ONE THING CONGRESSMAN EMMER SAID THAT YOU CAN TAKE TO THE BANK IS THEY HAVE BEEN MAKING PROGRESS ON APPROPRIATIONS DEALS. JEANNE, THE NEXT STEP IS PASSING THREE APPROPRIATIONS BILLS THAT ARE IN A CONFERENCE COMMITTEE THAT WE HAVE NOT HAD IN 25 YEARS. AGRICULTURE, MILITARY CONSTRUCTION, ONE OF THOSE COULD BE THE VEHICLE TO ACTUALLY CARRY A FIXED THE ACA PROBLEM. JOE: FASCINATING. THIS HAS BEEN A PRODUCTIVE CONVERSATION. JEANNE, WILL THIS BE SOLVED BEFORE FEDERAL WORKERS GO WITHOUT PAY ON OCTOBER 10? JEANNE: I DON'T KNOW ABOUT THAT. WHAT IS THAT, JOE, FOUR DAYS, AND THEN THE 15TH DEADLINE? MOST ODDS ARE THAT BY THE 15TH WE MAY SEE THIS THING LIFTED. BUT I AM NOT OPTIMISTIC THAT WE AVOID ANOTHER SHUTDOWN AT THE END OF THE YEAR, AND I WILL TELL YOU, THE DEMOCRATIC BASE WILL NOT BE HAPPY EITHER WAY, BECAUSE FOR THEM, THIS IS ABOUT MORE THAN JUST HEALTH CARE CAN IT IS ABOUT A PRESIDENT WHO IS LAWLESSLY COMMENDING THE UNITED STATES, INCLUDING SENDING TROOPS INTO CITIES THAT ARE BLUE AND STATES THAT ARE BLUE. FOR THEM, THIS IS GOING TO NOT BE REASSURING IF THE DEMOCRATS GO ALONG. I THINK WE MAY SEE A BIG SPLIT IN THE DEMOCRATIC PARTY OVER THIS. JOE: ONLY GOT ABOUT 30 SECONDS. THINK THEY CAN GET THIS DONE BEFORE THE 10TH AND THE 15TH WHEN CHECKS BE ISSUED? RICK: IF THIS COULD BE DONE REALLY QUICKLY, BASIC TERMS AROUND THE ACA FIX, WHAT IT MEANS FOR REPUBLICANS AND DEMOCRATS, REPUBLICANS GIVE SOME THINGS, DEMOCRATS GET WHAT THEY WANT, BY AND LARGE, 80-20, AND THEN BOOM, THEY PASS THE CR, AND THE PROCESS BEGINS OVER AGAIN TO PASS THESE APPROPRIATIONS BILLS, THREE OF WHICH ARE IN THE CHAMBER READY TO GO. CONGRESS CAN LOOK LIKE IT IS MAKING PROGRESS. JOE: YOU CAN SAY IT OUT LOUD, REGULAR ORDER. RICK DAVIS AND JEANNE SHEEHAN ZAINO, MANY THANKS. YOU CAN FIND MORE IN THE WASHINGTON EDITION NEWSLETTER. MEET YOU BACK HERE TOMORROW ON BLOOMBERG. ♪

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Trump in Talks With Democrats on Shutdown | Balance of Power Late Edition 10/06/2025

"Balance of Power: Late Edition" focuses on the intersection of politics and global business. On today's show, Jim Kessler, Third Way Executive Vice President for Policy, discusses President Trump stating he is talking to Democrats about health care suggesting this conversation might help the shutdown not last long. Jane Harman, Former US Rep. (D-CA) talks about the latest on Israel, Hamas talks. Rep. Tom Emmer (R-MN) talks about why he blames Senator Schumer for the shutdown and if federal layoffs and furloughs will happen soon. (Source: Bloomberg)

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