Bloomberg Audio Studios, podcasts, radio news. You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five pm Eastern on Apple Coarckley and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube.

Bloomberg Audio Studios, podcasts, radio news. You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five pm Eastern on Apple Coarckley and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube.

Thank you for being with us a Friday edition of Balance of Power. You made it to the threshold of the weekend. We do have news from the White House. As we walked you into the Oval Office at the top of the hour. Here Boeing is the winner to create the next the next generation fighter jet here in the US beating out Lockheed. It's moving stocks and it's part of the narrative today in Washington, DC. The Pentagon is in our view, I guess for a number of reasons. As you might have also heard the President and the Secretary of Defense talking about Elon Musk and the story today and the New York Times. They got everybody upset overnight. Elon Musk brought to the Pentagon for a briefing this morning, knowing, of course, he's one of the biggest and most important defense contractors with space X. Knowing as well that he is behind the Doge effort to bring some pretty heavy duty cost cutting. At least he wants to see that. To the Pentagon, the defense hawks don't, and as I said, the blowback was something else. The New York Times says Pentagon scheduled a brief Elon musk get this on the US military's plan for any war that might break out with China. The antennas went up at the White House. Time says briefing includes twenty to thirty slides outlining how the US military would fight China, the plan beginning with the indications and warning of a threat from China, to various options on what Chinese targets to hit, over what time period, what would be presented to President Trump for wartime decisions. Knowing as well that Elon does a lot of business in China with Tesla. So the tentacles are far and wide here in this story, and as I said, the White House wasn't having any of it. This is one hundred percent fake news. Chief Pentagon spokesman Sean Parnell. How disgraceful it is. President Trump said that discredited media can make up such lies. The fake news delivers. Again, said Pete Hegseth, and the narrative just continued there in the Oval office, the President saying they knew the story wasn't true. Talking about the New York Times, nobody believed that story. People want to explore. They laughed when they heard the story. He said, nobody believed the Pentagon was giving him a briefing on what war with China would look like. And we could talk about a lot of things involving Elon Musk. And that's where we start with Lisa Camuso Miller, the former RNC communications director Republican strategist with US right now on Bloomberg. Lisa, I missed you. It's great to have you back. You're no stranger to the Pentagon, the defense contracting business. Here. Does Elon Musk, the CEO of SpaceX, the CEO of Tesla, and the leader of the DOGE have business in that building?

Thank you for being with us a Friday edition of Balance of Power. You made it to the threshold of the weekend. We do have news from the White House. As we walked you into the Oval Office at the top of the hour. Here Boeing is the winner to create the next the next generation fighter jet here in the US beating out Lockheed. It's moving stocks and it's part of the narrative today in Washington, DC. The Pentagon is in our view, I guess for a number of reasons. As you might have also heard the President and the Secretary of Defense talking about Elon Musk and the story today and the New York Times. They got everybody upset overnight. Elon Musk brought to the Pentagon for a briefing this morning, knowing, of course, he's one of the biggest and most important defense contractors with space X. Knowing as well that he is behind the Doge effort to bring some pretty heavy duty cost cutting. At least he wants to see that. To the Pentagon, the defense hawks don't, and as I said, the blowback was something else. The New York Times says Pentagon scheduled a brief Elon musk get this on the US military's plan for any war that might break out with China. The antennas went up at the White House. Time says briefing includes twenty to thirty slides outlining how the US military would fight China, the plan beginning with the indications and warning of a threat from China, to various options on what Chinese targets to hit, over what time period, what would be presented to President Trump for wartime decisions. Knowing as well that Elon does a lot of business in China with Tesla. So the tentacles are far and wide here in this story, and as I said, the White House wasn't having any of it. This is one hundred percent fake news. Chief Pentagon spokesman Sean Parnell. How disgraceful it is. President Trump said that discredited media can make up such lies. The fake news delivers. Again, said Pete Hegseth, and the narrative just continued there in the Oval office, the President saying they knew the story wasn't true. Talking about the New York Times, nobody believed that story. People want to explore. They laughed when they heard the story. He said, nobody believed the Pentagon was giving him a briefing on what war with China would look like. And we could talk about a lot of things involving Elon Musk. And that's where we start with Lisa Camuso Miller, the former RNC communications director Republican strategist with US right now on Bloomberg. Lisa, I missed you. It's great to have you back. You're no stranger to the Pentagon, the defense contracting business. Here. Does Elon Musk, the CEO of SpaceX, the CEO of Tesla, and the leader of the DOGE have business in that building?

Well, not if he doesn't have a security clearance and not if he's not sentate confirmed. He ought not to. But you know, Joe, it's really hard to know what to believe right as it relates to this, But I will say that let me tie the two stories together for you. It was Elon Mutt that said that F thirty five was a gigantic loss leader for the US government, that over and over again we had overspent on technology that was not delivered. And so today's news about Boeing is to should be no surprise because Boeing overall is the better choice for this delivery of this brand new and very sophisticated product in en gat.

Well, not if he doesn't have a security clearance and not if he's not sentate confirmed. He ought not to. But you know, Joe, it's really hard to know what to believe right as it relates to this, But I will say that let me tie the two stories together for you. It was Elon Mutt that said that F thirty five was a gigantic loss leader for the US government, that over and over again we had overspent on technology that was not delivered. And so today's news about Boeing is to should be no surprise because Boeing overall is the better choice for this delivery of this brand new and very sophisticated product in en gat.

So this is.

So this is.

Remarkable work, and remarkable in that it's not a surprise because it was Donald Trump that's said in his original his first administration that he was really impressed by the F thirty five because of the technology and impressed by all of the facets of what the F thirty five promised. But the F thirty five has been a tremendous loss leader. And so do I know what Elon Musk was talking about with the Pentagon today? Now I have no idea, And do I believe anybody's protest because it sounds like everyone's protesting about it. I suspect that that probably caused a big headache in the White House today, But I also know that the president's very excited. It sounds like he's so excited that he's calling it the F forty seven.

Remarkable work, and remarkable in that it's not a surprise because it was Donald Trump that's said in his original his first administration that he was really impressed by the F thirty five because of the technology and impressed by all of the facets of what the F thirty five promised. But the F thirty five has been a tremendous loss leader. And so do I know what Elon Musk was talking about with the Pentagon today? Now I have no idea, And do I believe anybody's protest because it sounds like everyone's protesting about it. I suspect that that probably caused a big headache in the White House today, But I also know that the president's very excited. It sounds like he's so excited that he's calling it the F forty seven.

Yeah, what do you think about that. I guess they'll call it the Trump Jet or something. It's the F forty seven. The stocks are moving, you talk about Boeing's it's back above one hundred and eighty. Here's five percent. Lockheed's moving in the other direction. It's down over thirty dollars a share, about seven percent. I just want to make sure I understand because Elon Musk does not like the F thirty five program. This went to Boeing, And if that's the case, we've heard Donald Truy Trump make fun of Boeing, criticize Boeing for months and months since the door blowout in the jet, right up until recently when Boeing had trouble getting the astronauts home, never mind this whole flapover Air Force one. So does Elon make the call?

Yeah, what do you think about that. I guess they'll call it the Trump Jet or something. It's the F forty seven. The stocks are moving, you talk about Boeing's it's back above one hundred and eighty. Here's five percent. Lockheed's moving in the other direction. It's down over thirty dollars a share, about seven percent. I just want to make sure I understand because Elon Musk does not like the F thirty five program. This went to Boeing, And if that's the case, we've heard Donald Truy Trump make fun of Boeing, criticize Boeing for months and months since the door blowout in the jet, right up until recently when Boeing had trouble getting the astronauts home, never mind this whole flapover Air Force one. So does Elon make the call?

Not sure that Elon makes the call, but I certainly think that the fact that Doge and Elon Musk took a look at the F thirty five and said that's a product that we should take a look at, and we should look for something that's more sophisticated and perhaps one that could be delivered closer to hunt time. I do think it had some impact in the final decision. And look, the president, he doesn't pick winners and losers in that he he picks on everybody, the president. And so the fact that Boeing was the recipient of some criticism, so has every other US company.

Not sure that Elon makes the call, but I certainly think that the fact that Doge and Elon Musk took a look at the F thirty five and said that's a product that we should take a look at, and we should look for something that's more sophisticated and perhaps one that could be delivered closer to hunt time. I do think it had some impact in the final decision. And look, the president, he doesn't pick winners and losers in that he he picks on everybody, the president. And so the fact that Boeing was the recipient of some criticism, so has every other US company.

So don't read into it. What do you make of the Tesla vandalism. I don't mean to bob around too much on you here, but I feel like there's a big connection with the outrage over him at the Pentagon on today to this video. Do you see the video of these Tesla's on fire in Las Vegas. Physical attacks on Tesla cars and dealerships are going up. We're seeing molotov cocktails thrown at cars. You've got the Tim Wallas, the governor of Minnesota, who was of course the Democratic running mate, telling people to is celebrating the stock going down, telling to remove the Tesla logos from their cars. Have you ever seen anything like this?

So don't read into it. What do you make of the Tesla vandalism. I don't mean to bob around too much on you here, but I feel like there's a big connection with the outrage over him at the Pentagon on today to this video. Do you see the video of these Tesla's on fire in Las Vegas. Physical attacks on Tesla cars and dealerships are going up. We're seeing molotov cocktails thrown at cars. You've got the Tim Wallas, the governor of Minnesota, who was of course the Democratic running mate, telling people to is celebrating the stock going down, telling to remove the Tesla logos from their cars. Have you ever seen anything like this?

I mean, I've.

I mean, I've.

Never seen anything like any of what we've seen over the course of the last two months, Joe. But do I think that it's real? I mean, it was Elon Musk who was saying on podcasts before the election was decided that if Donald Trump wasn't elected, that he was done for. What I don't think he expected was that this kind of backlash would be coming for him.

Never seen anything like any of what we've seen over the course of the last two months, Joe. But do I think that it's real? I mean, it was Elon Musk who was saying on podcasts before the election was decided that if Donald Trump wasn't elected, that he was done for. What I don't think he expected was that this kind of backlash would be coming for him.

Yeah, that's a really interesting point. Of course, we didn't have a sense of what the Doge was even going to be at that point, and that that's really what has people upset here. Correct can talk about the salutes and all the weird stuff from the chainsaw, but it's the Doge cuts it. It's the way that employees have been fired that have changed sentiment here, right without question.

Yeah, that's a really interesting point. Of course, we didn't have a sense of what the Doge was even going to be at that point, and that that's really what has people upset here. Correct can talk about the salutes and all the weird stuff from the chainsaw, but it's the Doge cuts it. It's the way that employees have been fired that have changed sentiment here, right without question.

And you know, Joe, the other thing too, is that it's it's a contrast between two narratives, narratives that that that imply that we are trying to get back to a more lean and smart and efficient government, when in the same breath we're hearing about awards being given to Elon Musk for more work, right, so taking money out of the pockets of Americans federal workers, putting them out on the street, and putting more resources into the pocket of a guy who's not even Senate confirmed or an actual you know, government employee himself. So there's so much contrasts here that, Yeah, do I think that it's his brand that's going to take the greatest hit. Seems it seems like the most easy opportunity for the American people to speak up and out or how unhappy they are with Elon Musk and control in the government.

And you know, Joe, the other thing too, is that it's it's a contrast between two narratives, narratives that that that imply that we are trying to get back to a more lean and smart and efficient government, when in the same breath we're hearing about awards being given to Elon Musk for more work, right, so taking money out of the pockets of Americans federal workers, putting them out on the street, and putting more resources into the pocket of a guy who's not even Senate confirmed or an actual you know, government employee himself. So there's so much contrasts here that, Yeah, do I think that it's his brand that's going to take the greatest hit. Seems it seems like the most easy opportunity for the American people to speak up and out or how unhappy they are with Elon Musk and control in the government.

That's a pretty brutal world if you're somebody working at Tesla and you know, putting your life's work into designing these cars, which are pretty cool if you remove the politics from the whole equation here. You know, we've seen polls like this, and I know that you've been in this business long enough as well, Lisa, where you see politics layered over branding and say, okay, liberals prefer Pacifico beer, Conservatives like Miller Lite. Neither of them are drinking whatever this. But we actually project our politics often on our brand decisions, not in a hyper partisan way. This is the most extreme form of this we've ever seen. What does it tell us about the state we are in the country here? And will there be like a liberal version of Tesla that is the blue alternative for electric cars.

That's a pretty brutal world if you're somebody working at Tesla and you know, putting your life's work into designing these cars, which are pretty cool if you remove the politics from the whole equation here. You know, we've seen polls like this, and I know that you've been in this business long enough as well, Lisa, where you see politics layered over branding and say, okay, liberals prefer Pacifico beer, Conservatives like Miller Lite. Neither of them are drinking whatever this. But we actually project our politics often on our brand decisions, not in a hyper partisan way. This is the most extreme form of this we've ever seen. What does it tell us about the state we are in the country here? And will there be like a liberal version of Tesla that is the blue alternative for electric cars.

Perhaps there's also been a backlash against electric cars from the administration right. There's been this pullback on whether or not people and car owners would get the benefit of the you know, the tax break that they would get for buying an electric car. But Elon didn't care because it wasn't going to affect him in his own calculation, at least from the news reports that I've read. So but Joe, there are apps and there are resources all across the country now that give people a sense of where they should be spending their dollars, because spending their dollars can in fact, let not the government, but let the private sector know how they feel about the policies that they stand for. I've certainly seen people make decisions about their prime memberships with Amazon and their decisions about where to shop. So there is a lot of American dollars in the in the consumer space that are being spent more smartly and spent more wisely in a way that they're demonstrating their political voice not just at the polls, but in the in the regular, everyday shopping behaviors of the American people.

Perhaps there's also been a backlash against electric cars from the administration right. There's been this pullback on whether or not people and car owners would get the benefit of the you know, the tax break that they would get for buying an electric car. But Elon didn't care because it wasn't going to affect him in his own calculation, at least from the news reports that I've read. So but Joe, there are apps and there are resources all across the country now that give people a sense of where they should be spending their dollars, because spending their dollars can in fact, let not the government, but let the private sector know how they feel about the policies that they stand for. I've certainly seen people make decisions about their prime memberships with Amazon and their decisions about where to shop. So there is a lot of American dollars in the in the consumer space that are being spent more smartly and spent more wisely in a way that they're demonstrating their political voice not just at the polls, but in the in the regular, everyday shopping behaviors of the American people.

These are some stark images you guys are showing on YouTube here. This is from c the aftermath of these tesla's being burned up. I don't know where you go from here. Just in our final moment, Lisa Camuso Miller we're going to end up having corporations have to hire political strategist, Like you don't know how to advertise then, right.

These are some stark images you guys are showing on YouTube here. This is from c the aftermath of these tesla's being burned up. I don't know where you go from here. Just in our final moment, Lisa Camuso Miller we're going to end up having corporations have to hire political strategist, Like you don't know how to advertise then, right.

Well, yeah, in the advertising, also how they position themselves in their messaging and the words that they use as they as they demonstrate how they feel about particular issues. It's for the first time that I can remember in the near term that every single word that comes out of the out of the mouth, whether it's advertising, press statements, or otherwise, have got to go through a very specific filter to make sure that there isn't a backlash and to make sure that isn't affecting the consumer behavior as it relates to brands in the United States.

Well, yeah, in the advertising, also how they position themselves in their messaging and the words that they use as they as they demonstrate how they feel about particular issues. It's for the first time that I can remember in the near term that every single word that comes out of the out of the mouth, whether it's advertising, press statements, or otherwise, have got to go through a very specific filter to make sure that there isn't a backlash and to make sure that isn't affecting the consumer behavior as it relates to brands in the United States.

All right, let me know when the first major retailer reaches you to have this conversation, because I think this is kind of a big deal. Lisa, great to see you, have a great weekend, of course, and come see as soon. Typically on our panel, but we thought we'd take a deep dive and pick the brain of Lisa Camuso Miller, former RNC comm Director, republican strategist, and will assemble our panel next. They're back together today. Rick and Jeanie are on the way right here on Bloomberg.

All right, let me know when the first major retailer reaches you to have this conversation, because I think this is kind of a big deal. Lisa, great to see you, have a great weekend, of course, and come see as soon. Typically on our panel, but we thought we'd take a deep dive and pick the brain of Lisa Camuso Miller, former RNC comm Director, republican strategist, and will assemble our panel next. They're back together today. Rick and Jeanie are on the way right here on Bloomberg.

You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five pm Eastern on Apple Cocklay 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 eleven thirty.

You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five pm Eastern on Apple Cocklay 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 eleven thirty.

Here on Bloomberg Radio on the satellite you know We're always there on XM Satellite Radio Channel one twenty one. Runs right through the day, kind of like our YouTube feed starts early in the morning with Tom Keene straight through the late edition of Balance of Power. Get on YouTube search Bloomberg Business News Live. This is the best pro tip I have for you on this Friday. Okay, you get the live feed, you get the radio show, you get the video. Here in the studio, we'll keep you posted on everything while we have it. This is one hundred percent news, according to the chief Pentagon spokesman, Sean Parnell. The Defense Secretary says, the fake news delivers again. Donald Trump, China will not even be mentioned or discussed. How disgraceful that the discredited media can make up such lies. Echoed again there in the Oval Office, they're all talking about Elon Musk, and boy, the New York Times started a fire with this story last night. At the head of the doge, if we can call him that, and well, as it turns out, the head of pretty important defense contractor named SpaceX incidentally also runs Tesla, had a special appointment this morning at the Pentagon to be briefed on China war plans. This is what The New York Times wrote. This is when things started to get chippy at the White House. Everybody starts kicking out denials and fake news statements. Time said the briefing includes slides outlining how the US military would fight the options presented to President Trump. He actually went to the Pentagon this morning. He was there, they claim, However, he was not briefed on China. But it's raising a lot of new questions about Elon Musk. Politico this morning out with the column We've reached peak Elon. I kind of doubt it, but Democratic calls for his confirmation in the Senate are starting to grow louder again as people wonder exactly how much information he should be exposed to and how many decisions when it comes to procurement at the Pentagon he should be able to make by the way we know, as we just discussed with Lisa Camuso Miller, he was not a fan of the F thirty five project, called it a lost leader, Lockheed Martin. Look at that stock today because Lockheed was not selected to build the new fighter jet, the next generation fighter, the F forty seven. Boeing shares right now up five percent, Lockheed down seven. And as we assemble our signature panel, you know it's Friday when Rick and Jeanie you are back together. Rick Davis, partner at Stone Court Capital or Republican strategist and Jeanie Shanzino or Democratic analyst, senior democracy fellow with the Center for the Study of the Presidency in Congress. Rick, you're no stranger to the defense industry and the conversation that we're having here. This is, of course a project that a lot of defense hawks thought we were behind on getting a next generation fighter to keep up with or at least move beyond China. What do you make of the announcement today in the backdrop of Elon Musk, Yeah, I.

Here on Bloomberg Radio on the satellite you know We're always there on XM Satellite Radio Channel one twenty one. Runs right through the day, kind of like our YouTube feed starts early in the morning with Tom Keene straight through the late edition of Balance of Power. Get on YouTube search Bloomberg Business News Live. This is the best pro tip I have for you on this Friday. Okay, you get the live feed, you get the radio show, you get the video. Here in the studio, we'll keep you posted on everything while we have it. This is one hundred percent news, according to the chief Pentagon spokesman, Sean Parnell. The Defense Secretary says, the fake news delivers again. Donald Trump, China will not even be mentioned or discussed. How disgraceful that the discredited media can make up such lies. Echoed again there in the Oval Office, they're all talking about Elon Musk, and boy, the New York Times started a fire with this story last night. At the head of the doge, if we can call him that, and well, as it turns out, the head of pretty important defense contractor named SpaceX incidentally also runs Tesla, had a special appointment this morning at the Pentagon to be briefed on China war plans. This is what The New York Times wrote. This is when things started to get chippy at the White House. Everybody starts kicking out denials and fake news statements. Time said the briefing includes slides outlining how the US military would fight the options presented to President Trump. He actually went to the Pentagon this morning. He was there, they claim, However, he was not briefed on China. But it's raising a lot of new questions about Elon Musk. Politico this morning out with the column We've reached peak Elon. I kind of doubt it, but Democratic calls for his confirmation in the Senate are starting to grow louder again as people wonder exactly how much information he should be exposed to and how many decisions when it comes to procurement at the Pentagon he should be able to make by the way we know, as we just discussed with Lisa Camuso Miller, he was not a fan of the F thirty five project, called it a lost leader, Lockheed Martin. Look at that stock today because Lockheed was not selected to build the new fighter jet, the next generation fighter, the F forty seven. Boeing shares right now up five percent, Lockheed down seven. And as we assemble our signature panel, you know it's Friday when Rick and Jeanie you are back together. Rick Davis, partner at Stone Court Capital or Republican strategist and Jeanie Shanzino or Democratic analyst, senior democracy fellow with the Center for the Study of the Presidency in Congress. Rick, you're no stranger to the defense industry and the conversation that we're having here. This is, of course a project that a lot of defense hawks thought we were behind on getting a next generation fighter to keep up with or at least move beyond China. What do you make of the announcement today in the backdrop of Elon Musk, Yeah, I.

Think the announcement was highly anticipated. This current has been going on for a couple of years. So folks who follow these kinds of developments have been kind of hot in anticipation seeing what comes out of this. And there's been a general sensibility, at least amongst the people I've spoken to, that Boeing was definitely in the front runner seat on all this. But of course then you get all the atmospherics and I don't know who's running Doge pr actually had to get Stephen Miller's life in the White House. But what a day to not want to go to the Pentagon. I mean, like, his number one competitor in the space business in the Pentagon is Lockey. I mean SpaceX and Lockheed are direct competitors. And he decides to go to the Pentagon the morning Lockheed is going to get beat for this twenty billion dollar contract. I mean, like, who does that? Who says that's a good idea?

Think the announcement was highly anticipated. This current has been going on for a couple of years. So folks who follow these kinds of developments have been kind of hot in anticipation seeing what comes out of this. And there's been a general sensibility, at least amongst the people I've spoken to, that Boeing was definitely in the front runner seat on all this. But of course then you get all the atmospherics and I don't know who's running Doge pr actually had to get Stephen Miller's life in the White House. But what a day to not want to go to the Pentagon. I mean, like, his number one competitor in the space business in the Pentagon is Lockey. I mean SpaceX and Lockheed are direct competitors. And he decides to go to the Pentagon the morning Lockheed is going to get beat for this twenty billion dollar contract. I mean, like, who does that? Who says that's a good idea?

You know?

You know?

Look, I mean president can have anybody he wants briefed on any topic he wants. It has nothing to do with security, clernces, has nothing to do with propriety. That's a presidential option he can exert any time he wants, and he gets advice from whoever he asks for it. And that's the way it should be. But like, really today, the day the Oval Office has a defenser, care to come in and announce that you just had your top competitor beat and their stock goes through the bottom.

Look, I mean president can have anybody he wants briefed on any topic he wants. It has nothing to do with security, clernces, has nothing to do with propriety. That's a presidential option he can exert any time he wants, and he gets advice from whoever he asks for it. And that's the way it should be. But like, really today, the day the Oval Office has a defenser, care to come in and announce that you just had your top competitor beat and their stock goes through the bottom.

I mean, it's just nuts. Wow. Rick Davis puts it together. Genie, I don't even have to ask you a question. What do you think?

I mean, it's just nuts. Wow. Rick Davis puts it together. Genie, I don't even have to ask you a question. What do you think?

Well, you know, I think it was exactly what Elon Musk wanted, And I think what got away from him was the report by the New York Times last night, because the report was very clear he was going there. He was going to go in the tank, he was going to get that information on China and our war plans. And the President was obviously so angry last night when he wrote that truth, denying it, and after that the meeting in the tank was scrapped, but he still went to the Pentagon. So I think that this is exactly the point and exactly what he wanted. But what I did think was telling about what the President said in the Oval Office today was he was very very clear when he said Elon Musk should not have access to this kind of information. And by my that maybe the first time we have heard Donald Trump maybe a little bit walk away from Elon Musk and say he should not have access to information. Now, whether he believes that or not, it's another question, but he said it. And so those words I think are words we should pay attention to because it suggests that maybe he's reading the same polls we are, that Elon Musk may be a drain on him and his administration being this much outfront.

Well, you know, I think it was exactly what Elon Musk wanted, And I think what got away from him was the report by the New York Times last night, because the report was very clear he was going there. He was going to go in the tank, he was going to get that information on China and our war plans. And the President was obviously so angry last night when he wrote that truth, denying it, and after that the meeting in the tank was scrapped, but he still went to the Pentagon. So I think that this is exactly the point and exactly what he wanted. But what I did think was telling about what the President said in the Oval Office today was he was very very clear when he said Elon Musk should not have access to this kind of information. And by my that maybe the first time we have heard Donald Trump maybe a little bit walk away from Elon Musk and say he should not have access to information. Now, whether he believes that or not, it's another question, but he said it. And so those words I think are words we should pay attention to because it suggests that maybe he's reading the same polls we are, that Elon Musk may be a drain on him and his administration being this much outfront.

Well, it's interesting he's going back to a familiar playbook here from the campaign. Rick, it's all Elon all the time today apparently as we walk up on a very important elections, kind of the first it's going to get a lot of talk. Next week, we'll lay down a marker on this right now. Think of it as kind of the first test voter or example of an election since November here, and it's a Wisconsin Supreme Court election that we're talking about. Elon Musk the super pack that he founded to help Republican candidates beginning with Don Trump America Pack. Rick says, it's offering one hundred bucks, it's not a million this time, one hundred bucks to registered voters in Wisconsin who sign a petition in opposition to activist judges or refer others to sign it, spending millions to elect a conservative candidate to the Wisconsin Supreme Court.

Well, it's interesting he's going back to a familiar playbook here from the campaign. Rick, it's all Elon all the time today apparently as we walk up on a very important elections, kind of the first it's going to get a lot of talk. Next week, we'll lay down a marker on this right now. Think of it as kind of the first test voter or example of an election since November here, and it's a Wisconsin Supreme Court election that we're talking about. Elon Musk the super pack that he founded to help Republican candidates beginning with Don Trump America Pack. Rick says, it's offering one hundred bucks, it's not a million this time, one hundred bucks to registered voters in Wisconsin who sign a petition in opposition to activist judges or refer others to sign it, spending millions to elect a conservative candidate to the Wisconsin Supreme Court.

Here.

Here.

That election is the first of April. Remember last time it was like a lottery. You had sign up getting the lottery to win a million dollars. What do you make of thee hundred bucks ahead here? Elon Musk has been a busy man lately.

That election is the first of April. Remember last time it was like a lottery. You had sign up getting the lottery to win a million dollars. What do you make of thee hundred bucks ahead here? Elon Musk has been a busy man lately.

Yeah, it's a bounty to get information, right, So sign this and then we've got your name, your address, your cell phone, your your email. And this is what it's all about, is identifying voters who have a willingness to say yes to the profile that Brad Schimmel has, which is the Republican candidate for the Supreme Court. And then they're going to cross lay that over on all the data they have on voters. And it's a very smart play. There's still a lot of shrugs and scratch into the head to determine whether any of this stuff is legal. This being a state race, it doesn't have anything with federal election laws. It's got state election laws written all over it. And so look, I mean, Elon has the money to do this kind of a technique. And if you're in the data business. Politically, this is brilliant. You're going to capture a lot of names and information.

Yeah, it's a bounty to get information, right, So sign this and then we've got your name, your address, your cell phone, your your email. And this is what it's all about, is identifying voters who have a willingness to say yes to the profile that Brad Schimmel has, which is the Republican candidate for the Supreme Court. And then they're going to cross lay that over on all the data they have on voters. And it's a very smart play. There's still a lot of shrugs and scratch into the head to determine whether any of this stuff is legal. This being a state race, it doesn't have anything with federal election laws. It's got state election laws written all over it. And so look, I mean, Elon has the money to do this kind of a technique. And if you're in the data business. Politically, this is brilliant. You're going to capture a lot of names and information.

That's fascinating. Jeanie, what do you think about this? Elon Musk is a senior advisor to the president. There's nothing illegal here, right, It's just an interesting look. Spending money like this to get someone elected to the Wisconsin Supreme Court.

That's fascinating. Jeanie, what do you think about this? Elon Musk is a senior advisor to the president. There's nothing illegal here, right, It's just an interesting look. Spending money like this to get someone elected to the Wisconsin Supreme Court.

Yeah, not unless it violates a Wisconsin state law. And apparently at this point nobody has suggested it, does.

Yeah, not unless it violates a Wisconsin state law. And apparently at this point nobody has suggested it, does.

You know?

You know?

It is fascinating though most of us go to the ballot box, go to vote, and we see a litany of judges on the ballot and even those of us who follow up politics closely have no clue who many of these people are. But Wisconsin has become a state in which they're going to spend what, one hundred million dollars on a Supreme Court race, and next year they're saying it could go up to two hundred million dollars. I mean, it's utterly astounding, and it really is a battle of the billionaires because Elon Musk on the one side. Then you look at the Democratic side and you've got big spenders there like George Soros, the governor of Illinois. So this is a race where their people are pouring money in and Democrats are really really trying to figure out can they put Musk at the top of every ticket in the midterm and get out the vote that way? And so they're hoping that Wisconsin, and then when we go to the Virginia governor's race, they'll be able to test some of these messages with Elon with his you know, with his you know and all these things he's running around with. Does it get people out? Our Democrats mad enough that Elon must to get out to vote in greater numbers. They have to be careful, though, because we all remember a few years ago abortion did get Democrats out in this same race, and the following year Donald Trump won the state. So it doesn't always work the way Democrats want.

It is fascinating though most of us go to the ballot box, go to vote, and we see a litany of judges on the ballot and even those of us who follow up politics closely have no clue who many of these people are. But Wisconsin has become a state in which they're going to spend what, one hundred million dollars on a Supreme Court race, and next year they're saying it could go up to two hundred million dollars. I mean, it's utterly astounding, and it really is a battle of the billionaires because Elon Musk on the one side. Then you look at the Democratic side and you've got big spenders there like George Soros, the governor of Illinois. So this is a race where their people are pouring money in and Democrats are really really trying to figure out can they put Musk at the top of every ticket in the midterm and get out the vote that way? And so they're hoping that Wisconsin, and then when we go to the Virginia governor's race, they'll be able to test some of these messages with Elon with his you know, with his you know and all these things he's running around with. Does it get people out? Our Democrats mad enough that Elon must to get out to vote in greater numbers. They have to be careful, though, because we all remember a few years ago abortion did get Democrats out in this same race, and the following year Donald Trump won the state. So it doesn't always work the way Democrats want.

Well, you set that up perfectly, Genie, And I'm wondering what your thought is, Rick. Are we already giving too much emphasis to this race as some sort of indicator as to the political temperature in the country.

Well, you set that up perfectly, Genie, And I'm wondering what your thought is, Rick. Are we already giving too much emphasis to this race as some sort of indicator as to the political temperature in the country.

Yeah, I don't think we want to get too far over our skis on the idea that this is going to be indicative of any other race, but a statewide Wisconsin, you know Supreme Court race. That being said, there is a message being sent here, and this is we've heard this a lot during the confirmation process that if you don't pull the line on what Donald Trump wants in Congress, you're going to have Elon and the America's pack and the build America pack on your back. And him spending twenty million dollars here is a proof point in that when they get back to Congress and they've got a tough vote, Elon Musk says, I'm going to run people against you. If you don't pull the right trigger on this vote, then then.

Yeah, I don't think we want to get too far over our skis on the idea that this is going to be indicative of any other race, but a statewide Wisconsin, you know Supreme Court race. That being said, there is a message being sent here, and this is we've heard this a lot during the confirmation process that if you don't pull the line on what Donald Trump wants in Congress, you're going to have Elon and the America's pack and the build America pack on your back. And him spending twenty million dollars here is a proof point in that when they get back to Congress and they've got a tough vote, Elon Musk says, I'm going to run people against you. If you don't pull the right trigger on this vote, then then.

You know he means it because he just spent.

You know he means it because he just spent.

Twenty million bucks on a Wisconsin Supreme Court race. And I think that's really the message that's being sent here.

Twenty million bucks on a Wisconsin Supreme Court race. And I think that's really the message that's being sent here.

Just give you a taste of how Democrats are handling their side of the race. This is actually a piece of an ad from Wisconsin Watch.

Just give you a taste of how Democrats are handling their side of the race. This is actually a piece of an ad from Wisconsin Watch.

Attacking social Security, cutting medicaid and child cancer research, dismantling the Department of Education. Elon Musk is out of control and now the power hungry billionaire is unloading millions to buy the Wisconsin Supreme Court.

Attacking social Security, cutting medicaid and child cancer research, dismantling the Department of Education. Elon Musk is out of control and now the power hungry billionaire is unloading millions to buy the Wisconsin Supreme Court.

That's from Wiscy Hansen Democrats, Genie, they found their boogeyman. Is it going to work? We've got one minute.

That's from Wiscy Hansen Democrats, Genie, they found their boogeyman. Is it going to work? We've got one minute.

Yeah, they're hoping, So we won't know until we get these results out of Wisconsin. But already turnout is huge there. They say it was up like one hundred and twenty percent last time I checked, So it may turn people up. But of course turnout, we don't know whether that is for or against the Republicans, so we'll have to see. But Democrats are certainly hoping that this GM's up turnout in a race like this, and they can move that into the midterm. But again, we don't know if Elon Musk is going to be relevant by midterm time.

Yeah, they're hoping, So we won't know until we get these results out of Wisconsin. But already turnout is huge there. They say it was up like one hundred and twenty percent last time I checked, So it may turn people up. But of course turnout, we don't know whether that is for or against the Republicans, so we'll have to see. But Democrats are certainly hoping that this GM's up turnout in a race like this, and they can move that into the midterm. But again, we don't know if Elon Musk is going to be relevant by midterm time.

Yeah, race is April first. We'll be talking more about it with Rick and Genie as we get closer. Isn't it great to have these guys back together again? And it's Friday.

Yeah, race is April first. We'll be talking more about it with Rick and Genie as we get closer. Isn't it great to have these guys back together again? And it's Friday.

You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five pm Eastern on Apple, Cockley and Android Otto with the Bloomberg Business App. Listen on demand wherever you get your pots, or watch us live on YouTube.

You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and five pm Eastern on Apple, Cockley and Android Otto with the Bloomberg Business App. Listen on demand wherever you get your pots, or watch us live on YouTube.

Perfects with the news here On Friday edition of Balance of Power on Bloomberg TV and Radio. A stock moving day here in Washington with the announcement of this new defense contract, the next generation fighter is you just heard from Charlie, it's moving Boeing, it's moving Lockheed. This market does not smack of the Golden Age. However, we were promised by this White House it will take time. According to the headline on Josh Wingrow's great column, Julie, Fine, we do want to dig into the decision making here that went into this defense contract, and it really has a lot to do with the optics. Like we were discussing at the beginning of the hour here, the fact that Elon Musk was at the Pentagon today the President and the Defense Secretary asked by reporters about what's going on today in the White House. Their attempt to frame exactly why he was there.

Perfects with the news here On Friday edition of Balance of Power on Bloomberg TV and Radio. A stock moving day here in Washington with the announcement of this new defense contract, the next generation fighter is you just heard from Charlie, it's moving Boeing, it's moving Lockheed. This market does not smack of the Golden Age. However, we were promised by this White House it will take time. According to the headline on Josh Wingrow's great column, Julie, Fine, we do want to dig into the decision making here that went into this defense contract, and it really has a lot to do with the optics. Like we were discussing at the beginning of the hour here, the fact that Elon Musk was at the Pentagon today the President and the Defense Secretary asked by reporters about what's going on today in the White House. Their attempt to frame exactly why he was there.

And their attempt to frame it was doge. It always seems to come back to doe job Ron muss So that's what they said he was there doing. Josh Windrow, we'd like to bring you in, our senior White House correspondent, Josh, I want to talk to you about your reaction to what you saw there.

And their attempt to frame it was doge. It always seems to come back to doe job Ron muss So that's what they said he was there doing. Josh Windrow, we'd like to bring you in, our senior White House correspondent, Josh, I want to talk to you about your reaction to what you saw there.

I mean It's been an interesting morning here so far. Look Trump reacting angrily but also fundamentally confirming key parts of that story, which is that Elon is at DoD today. So you know, I guess he's just talking about cost cutting, but not about what many Trump allies views the number one adversary of America. So you know who's to say, Well, I'll come out in the wash on that. But right now, it's a dynamic day there. But Trump is you know, has been taking up and down in terms of public profile this week. He you know, has over the last couple of weeks, in particular with what we're seeing in markets. So this his holding court today was the first time, and he's not doing it as often as he used to. I guess is what I'm fumbling at.

I mean It's been an interesting morning here so far. Look Trump reacting angrily but also fundamentally confirming key parts of that story, which is that Elon is at DoD today. So you know, I guess he's just talking about cost cutting, but not about what many Trump allies views the number one adversary of America. So you know who's to say, Well, I'll come out in the wash on that. But right now, it's a dynamic day there. But Trump is you know, has been taking up and down in terms of public profile this week. He you know, has over the last couple of weeks, in particular with what we're seeing in markets. So this his holding court today was the first time, and he's not doing it as often as he used to. I guess is what I'm fumbling at.

It's been an interesting time for Elon Musk and the way the White House has tried to embrace him ever since the Tesla's were lined up in the driveway there. Right, you've got Howard Lutnik telling people to buy Tesla's stock, the Commerce Secretary, of course, Elon told his workers to hang onto their stock for a better yesterday. Now you've got him over at the Pentagon and the Defense Secretary with a full throated as you heard in the Oval Office, Defense said, this is a great patriot and someone who is actually helping the United States of America defend itself. But you can't deny the inherent conflicts of interest here.

It's been an interesting time for Elon Musk and the way the White House has tried to embrace him ever since the Tesla's were lined up in the driveway there. Right, you've got Howard Lutnik telling people to buy Tesla's stock, the Commerce Secretary, of course, Elon told his workers to hang onto their stock for a better yesterday. Now you've got him over at the Pentagon and the Defense Secretary with a full throated as you heard in the Oval Office, Defense said, this is a great patriot and someone who is actually helping the United States of America defend itself. But you can't deny the inherent conflicts of interest here.

I mean this has been an animating issue throughout the course of Elon.

I mean this has been an animating issue throughout the course of Elon.

Says anything louder than this one of the CEO of SpaceX who doesn't like Lockheed Martin in the building at the Pentagon the day Boeen gets a major contract.

Says anything louder than this one of the CEO of SpaceX who doesn't like Lockheed Martin in the building at the Pentagon the day Boeen gets a major contract.

I mean, the calls that are loudest for Elon are coming from fans of his companies. I mean we saw that in one of the stories on the terminal today. It's advocates of Tesla saying that he's being pulled into many directions, and Elon himself last night telling Tesla employees, look, I feel like I have seventeen different jobs. Now I only have one job. Joe. You feel like you have a couple, Julie. God knows how many you have, but Elon says he's got seventeen. And the pressure it seems to be building more from that side, because if you're a Tesla evangelist, you've seen this tock come down what fifty percent in the last couple of months, and so you are thinking that this is just too many directions that he's being pulled into Trump. You know, when he starts a sour on, someone signs bubble up. You know, he starts kind of riffing, and you know he takes the off ramp on a tangent here and there. We haven't seen that with Elon. There's not a lot of sign that Trump is distancing himself. On the contrary, you mentioned the Tesla display on the South Lawn. So I think, if anything, Trump loves Elon being around.

I mean, the calls that are loudest for Elon are coming from fans of his companies. I mean we saw that in one of the stories on the terminal today. It's advocates of Tesla saying that he's being pulled into many directions, and Elon himself last night telling Tesla employees, look, I feel like I have seventeen different jobs. Now I only have one job. Joe. You feel like you have a couple, Julie. God knows how many you have, but Elon says he's got seventeen. And the pressure it seems to be building more from that side, because if you're a Tesla evangelist, you've seen this tock come down what fifty percent in the last couple of months, and so you are thinking that this is just too many directions that he's being pulled into Trump. You know, when he starts a sour on, someone signs bubble up. You know, he starts kind of riffing, and you know he takes the off ramp on a tangent here and there. We haven't seen that with Elon. There's not a lot of sign that Trump is distancing himself. On the contrary, you mentioned the Tesla display on the South Lawn. So I think, if anything, Trump loves Elon being around.

What's interesting about this, Josh, and we've talked about this in the past, is you do see him souring on people. You see it, You've seen it in twenty sixteen, you're seeing it now in the second term. However, there's something there about Elon that gives him staying power right now that other people were not able to achieve.

What's interesting about this, Josh, and we've talked about this in the past, is you do see him souring on people. You see it, You've seen it in twenty sixteen, you're seeing it now in the second term. However, there's something there about Elon that gives him staying power right now that other people were not able to achieve.

Yeah, Trump likes celebrities, Trump likes a fellow business people, and he thinks that there's waste and fraud in the government. One of the things I think is flown under the radar is Elon keeps like backtracking on some of the saving that they're booking, right, and a lot of this is simply a savings exercise ahead of these congressional talks. They want to book savings and they want to make the math work on the budget reconciliation package. But a lot of that is just evaporated. They post things, they take it down, they change it. In some cases have overstated the savings by you know, several times. And so right now, I think the Trump is there because he thinks Elon is helping sort of break stuff that Trump wants to break. I think tension always comes in the Trump world. And I'm not saying that's happening yet. When things start breaking that Trump does not want to break. And when that happens, we'll see where it goes. We have seen elements of that. I will note on things like staffing cuts with Trump holding cabin meetings say actually we're not going to just get rid of everyone. Don't cut with an axe, cut with a scalpel. Keep the good people. Of course, better said than they're, easier said than done.

Yeah, Trump likes celebrities, Trump likes a fellow business people, and he thinks that there's waste and fraud in the government. One of the things I think is flown under the radar is Elon keeps like backtracking on some of the saving that they're booking, right, and a lot of this is simply a savings exercise ahead of these congressional talks. They want to book savings and they want to make the math work on the budget reconciliation package. But a lot of that is just evaporated. They post things, they take it down, they change it. In some cases have overstated the savings by you know, several times. And so right now, I think the Trump is there because he thinks Elon is helping sort of break stuff that Trump wants to break. I think tension always comes in the Trump world. And I'm not saying that's happening yet. When things start breaking that Trump does not want to break. And when that happens, we'll see where it goes. We have seen elements of that. I will note on things like staffing cuts with Trump holding cabin meetings say actually we're not going to just get rid of everyone. Don't cut with an axe, cut with a scalpel. Keep the good people. Of course, better said than they're, easier said than done.

We've only got about a minute left. I want to ask you about this great piece you have on the terminal and at Bloomberg dot Com sharing the byline with Hadriana Lowen Kron, Trump says promised us golden age, take time. It gets us back to the no pain, no gain idea that the market really doesn't seem to be buying at the moment.

We've only got about a minute left. I want to ask you about this great piece you have on the terminal and at Bloomberg dot Com sharing the byline with Hadriana Lowen Kron, Trump says promised us golden age, take time. It gets us back to the no pain, no gain idea that the market really doesn't seem to be buying at the moment.

Yeah, I should pay tribute to Adrianna for sharing her byline with me. What a colleague we have that nice No, No, she's doing good. It's a great story. If I can humbly say, we have been waiting for to see when Trump really wraps his arms around this economy, because, if anything, that'll be a sign that he thinks that it's going in one direction. Right. He has been waffling on that, and his aids have been sort of distancing themselves and say, hey, when does he own this? When is it no longer the sort of Joe Biden. What they argue is to Joe Biden sort of hangover economy, when does it become the Trump economy? And they're saying six to twelve months, Q three, Q four. One aide telling us, look, it depends on the policies. It'll be the Trump economy if we get our policies enacted, including in Republicans pass that tax bill. But all this is sort of, you know, not what Trump promised on the campaign trail, right He promised literally a miracle. He promised a golden age. And so right now the question is like, what are we seeing the Every president in the history of times takes credit for the economy. The difference is that the threat to the economy right now, the thing that's weighing on sentiment is Trump's own policies. It's a tariff question hanging in the air. We'll have a lot more clarity on that in April. Second. If it's narrower than expected, then markets will be happy. If it's wider than expected, then who knows for sentimental cover Right now, we heard it from J. Powell. The thing that's weighing on markets, the thing that it's making Donald Trump not really want to wrap his arms around it is, of course Trump himself and his policy's on trade.

Yeah, I should pay tribute to Adrianna for sharing her byline with me. What a colleague we have that nice No, No, she's doing good. It's a great story. If I can humbly say, we have been waiting for to see when Trump really wraps his arms around this economy, because, if anything, that'll be a sign that he thinks that it's going in one direction. Right. He has been waffling on that, and his aids have been sort of distancing themselves and say, hey, when does he own this? When is it no longer the sort of Joe Biden. What they argue is to Joe Biden sort of hangover economy, when does it become the Trump economy? And they're saying six to twelve months, Q three, Q four. One aide telling us, look, it depends on the policies. It'll be the Trump economy if we get our policies enacted, including in Republicans pass that tax bill. But all this is sort of, you know, not what Trump promised on the campaign trail, right He promised literally a miracle. He promised a golden age. And so right now the question is like, what are we seeing the Every president in the history of times takes credit for the economy. The difference is that the threat to the economy right now, the thing that's weighing on sentiment is Trump's own policies. It's a tariff question hanging in the air. We'll have a lot more clarity on that in April. Second. If it's narrower than expected, then markets will be happy. If it's wider than expected, then who knows for sentimental cover Right now, we heard it from J. Powell. The thing that's weighing on markets, the thing that it's making Donald Trump not really want to wrap his arms around it is, of course Trump himself and his policy's on trade.

We're going to talk to Mackenzie Egland in a moment from the American Enterprise Institute about this contract being awarded today. Did he come up with the F forty seven?

We're going to talk to Mackenzie Egland in a moment from the American Enterprise Institute about this contract being awarded today. Did he come up with the F forty seven?

That's a great I was laughing, laughing device.

That's a great I was laughing, laughing device.

Serious, let us know if you find it.

Serious, let us know if you find it.

I mean Space Force seemed like it was a riff. And here we have a Space Force now as well, all these years later.

I mean Space Force seemed like it was a riff. And here we have a Space Force now as well, all these years later.

So there was no F forty five. I mean we got to go back.

So there was no F forty five. I mean we got to go back.

I mean it couldn't. Yeah, maybe they'll settle on that as a compromise. Find forty six I think is out though.

I mean it couldn't. Yeah, maybe they'll settle on that as a compromise. Find forty six I think is out though.

Find Haydriana how true and Josh's story on the terminal is great to see you. Thanks, right from the White House to your TV and radio. I'm Joe, Matthew and Washington. As we do prepare to add Mackenzie Eagland's voice to the equation, Let's bring you back to the Oval Office for this important announcement today.

Find Haydriana how true and Josh's story on the terminal is great to see you. Thanks, right from the White House to your TV and radio. I'm Joe, Matthew and Washington. As we do prepare to add Mackenzie Eagland's voice to the equation, Let's bring you back to the Oval Office for this important announcement today.

After a rigorous and thorough competition between some of America's top aerospace companies, the Air Force is going to be awarding the contract for the next generation air dominance platform to Boeing, as you know, was highly competed for. There was a lot of competition.

After a rigorous and thorough competition between some of America's top aerospace companies, the Air Force is going to be awarding the contract for the next generation air dominance platform to Boeing, as you know, was highly competed for. There was a lot of competition.

The President a short time ago behind the resolute desk. As we bring in Mackenzie Eagland, Senior fellow American Enterprise Institute, McKenzie, it's great to have you with us here on what is a breaking news story. We finally got the contract and we have a sense of the contours of this program. We even know it's called the F forty seven. Is this money well spent?

The President a short time ago behind the resolute desk. As we bring in Mackenzie Eagland, Senior fellow American Enterprise Institute, McKenzie, it's great to have you with us here on what is a breaking news story. We finally got the contract and we have a sense of the contours of this program. We even know it's called the F forty seven. Is this money well spent?

It's necessary money to spend. It's an expensive aircraft. But the Pentagon doesn't buy enough gail. So when you buy very few of some thing, of course it costs more money.

It's necessary money to spend. It's an expensive aircraft. But the Pentagon doesn't buy enough gail. So when you buy very few of some thing, of course it costs more money.

You know.

You know.

Obviously this was sought after.

Obviously this was sought after.

Why Boeing.

Why Boeing.

So Boeing, you know, they have a long history of terrific military products, albeit in some cases behind schedule and with some difficulty when they cross over to their commercial lines. But this is a program that's not joint with the Navy, but sort of in partnership with the Navy, and Boeing built the Navy's air Superiority fighters, and they have a role in other different aircraft programs as well, across the defense and aerospace accounts. And so it's the right it's the winner. Lockey dropped out. It came down to Boeing and Northrop, and they were chosen for a variety of reasons that will not become public for you and I to know fully, except that it was the right combination of cost and that meets the threats that depending on is looking at interesting.

So Boeing, you know, they have a long history of terrific military products, albeit in some cases behind schedule and with some difficulty when they cross over to their commercial lines. But this is a program that's not joint with the Navy, but sort of in partnership with the Navy, and Boeing built the Navy's air Superiority fighters, and they have a role in other different aircraft programs as well, across the defense and aerospace accounts. And so it's the right it's the winner. Lockey dropped out. It came down to Boeing and Northrop, and they were chosen for a variety of reasons that will not become public for you and I to know fully, except that it was the right combination of cost and that meets the threats that depending on is looking at interesting.

This is an aircraft that won't be in service until the twenty thirties. Mackenzie. What war is this preparing for? Is this an answer to China's next generation fighter that it recently unveiled, or at least we saw images of.

This is an aircraft that won't be in service until the twenty thirties. Mackenzie. What war is this preparing for? Is this an answer to China's next generation fighter that it recently unveiled, or at least we saw images of.

In part, But it really so. The US Air Force is the only branch of any military in the world that can hold Chinese targets in the mainland China at risk. If you want to continue to be able to do that, to have that unique capability on planet Earth, you have to have a new bomber kind of shuts you know, opens the door for the fighter to come in behind it, the air superiority fighter and clear you know, the air of enemy air defenses, anti access and area denial capabilities, other long range strike assets. So the bomber and the fighter and some space assets work together to keep that unique position in the United States of America's military and so and yet another reason why you need to invest in it and why it's verys.

In part, But it really so. The US Air Force is the only branch of any military in the world that can hold Chinese targets in the mainland China at risk. If you want to continue to be able to do that, to have that unique capability on planet Earth, you have to have a new bomber kind of shuts you know, opens the door for the fighter to come in behind it, the air superiority fighter and clear you know, the air of enemy air defenses, anti access and area denial capabilities, other long range strike assets. So the bomber and the fighter and some space assets work together to keep that unique position in the United States of America's military and so and yet another reason why you need to invest in it and why it's verys.

What's interesting about this, As President Trump said, the plane will travel with drones. He said, quote as many drones as you want. Is this a fighter jet?

What's interesting about this, As President Trump said, the plane will travel with drones. He said, quote as many drones as you want. Is this a fighter jet?

Is it really a.

Is it really a.

Platform for drones, you know, explain the concept there.

Platform for drones, you know, explain the concept there.

Sure, this is sort of like a loyal wingman concept. So the F forty seven is a penetrating combat aircraft, but it's a part of a family, and it's also informing other air force acquisition guideposts for the future. We'll talk about that in a moment. But it will fly alongside hundreds of drones called the collab autonomous aircraft called collaborative combat aircraft, and it will also have presumably a stealth tanker capability with it could also be I mean in theory that could also be a drone truck, a fuel drone truck next to it. So it's going to sort of be the mothership to these other loyal autonomous mostly presumably autonomous wings. And then there are some off board capabilities in other parts of the system that of course are not in the air as well.

Sure, this is sort of like a loyal wingman concept. So the F forty seven is a penetrating combat aircraft, but it's a part of a family, and it's also informing other air force acquisition guideposts for the future. We'll talk about that in a moment. But it will fly alongside hundreds of drones called the collab autonomous aircraft called collaborative combat aircraft, and it will also have presumably a stealth tanker capability with it could also be I mean in theory that could also be a drone truck, a fuel drone truck next to it. So it's going to sort of be the mothership to these other loyal autonomous mostly presumably autonomous wings. And then there are some off board capabilities in other parts of the system that of course are not in the air as well.

Well. Sounds fascinating, to be honest, to actually see this in the real world is going to be something McKenzie. What's next? Obviously next generation fighter was near the top of the list here, but we've heard a lot about the rebuilding, the revamping of our navy, the ship building plans that this White House and this Pentagon has Is that next on the list or are we looking somewhere else.

Well. Sounds fascinating, to be honest, to actually see this in the real world is going to be something McKenzie. What's next? Obviously next generation fighter was near the top of the list here, but we've heard a lot about the rebuilding, the revamping of our navy, the ship building plans that this White House and this Pentagon has Is that next on the list or are we looking somewhere else.

I expect there to be a lot of investment in the United States Navy, but moving it towards the same direction the aircraft they excuse me, the air Force is heading, which is more autonomous supplemental capability to sail alongside or undersea with US Navy ships because it takes so long for these manned capabilities to come online, because we demand that, we demand exquisite systems and safety and testing and other things. Since it's for the armed forces, the Navy's going to be moving in the same direction, not just for ships, but what goes on top of the ships or inside the ships, so meaning aircraft, missiles, and munitions, etc.

I expect there to be a lot of investment in the United States Navy, but moving it towards the same direction the aircraft they excuse me, the air Force is heading, which is more autonomous supplemental capability to sail alongside or undersea with US Navy ships because it takes so long for these manned capabilities to come online, because we demand that, we demand exquisite systems and safety and testing and other things. Since it's for the armed forces, the Navy's going to be moving in the same direction, not just for ships, but what goes on top of the ships or inside the ships, so meaning aircraft, missiles, and munitions, etc.

But I also.

But I also.

Think the Golden Dome for America will be another investment that's going to move pretty quickly. With a lot of announcements this year, which we know is a priority for this White House. I'd see these are probably the three marquee baskets of investments for this year for this administration.

Think the Golden Dome for America will be another investment that's going to move pretty quickly. With a lot of announcements this year, which we know is a priority for this White House. I'd see these are probably the three marquee baskets of investments for this year for this administration.

If you're introducing a new billion dollar plane, this is the era of dose, So what do you think will be cut what will change because of all the money going to.

If you're introducing a new billion dollar plane, this is the era of dose, So what do you think will be cut what will change because of all the money going to.

This, which I think is great. Honestly, it's refreshing, frankly to have the largest federal bureaucracy, larger than every other agency combined, shook up and having each program justify its existence, whether that's an organization, a human or a weapons system and capability. So clearly you'll start with other so called legacy systems that don't to meet the threat profile that depending on is looking at, particularly relative to China, and you'll offload those to help reinvest some of the money required for the penetrating combat aircraft program that forty seven. But beyond that, you're going to also try and streamline. Well, you're going to want to move ahead, you know with the stealth tanker. That program has been challenged as well. The Air Force has had a lot of acquisition challenges the last twenty years, so it's important to get the Air Force in sort of a good place, a healthy place with spending. But then you're going I expect other streamlining of other organizations and commands and units and people because really those are the most expensive things the Air Force buys. It's not aircraft, it's bases, places and people and services, so you'll see a corresponding reduction I think in force structure alongside of the investment in this program.

This, which I think is great. Honestly, it's refreshing, frankly to have the largest federal bureaucracy, larger than every other agency combined, shook up and having each program justify its existence, whether that's an organization, a human or a weapons system and capability. So clearly you'll start with other so called legacy systems that don't to meet the threat profile that depending on is looking at, particularly relative to China, and you'll offload those to help reinvest some of the money required for the penetrating combat aircraft program that forty seven. But beyond that, you're going to also try and streamline. Well, you're going to want to move ahead, you know with the stealth tanker. That program has been challenged as well. The Air Force has had a lot of acquisition challenges the last twenty years, so it's important to get the Air Force in sort of a good place, a healthy place with spending. But then you're going I expect other streamlining of other organizations and commands and units and people because really those are the most expensive things the Air Force buys. It's not aircraft, it's bases, places and people and services, so you'll see a corresponding reduction I think in force structure alongside of the investment in this program.

McKenzie, you've only got a minute left here watching Boeing shares rise over five percent at the moment. From the investment standpoint, are these old line massive defense contractors still sound investments? Do they have the growth potential that they used to have up against many smaller private companies making drones, making software, reinventing defense.

McKenzie, you've only got a minute left here watching Boeing shares rise over five percent at the moment. From the investment standpoint, are these old line massive defense contractors still sound investments? Do they have the growth potential that they used to have up against many smaller private companies making drones, making software, reinventing defense.

It depends if the pie grows, it's big enough to broaden the industrial base and strengthen the traditional industrial base, although I expect at the end of this presidential administration, you know, there may be one fewer, but otherwise there's a lot of partnership going on between and among them behind the scenes, but there is room for new entrant and disruption. The primes do something that the other companies haven't yet shown that they can do. When they can do it, then maybe.

It depends if the pie grows, it's big enough to broaden the industrial base and strengthen the traditional industrial base, although I expect at the end of this presidential administration, you know, there may be one fewer, but otherwise there's a lot of partnership going on between and among them behind the scenes, but there is room for new entrant and disruption. The primes do something that the other companies haven't yet shown that they can do. When they can do it, then maybe.

It's great to have you with us from the American Enterprise Institute, Mackenzie Eglan. On this day, Boeing lands the big next generation fighter contract. I'm Joe Matthew alongside Julie Fine in Washington, This is Bloomberg. Thanks for listening to the Balance of Power podcast. Make sure to subscribe if you haven't already, at Apple, Spotify, or wherever you get your podcasts, and you can find us live every weekday from Washington, DC at Noontimeeastern at Bloomberg dot com.

It's great to have you with us from the American Enterprise Institute, Mackenzie Eglan. On this day, Boeing lands the big next generation fighter contract. I'm Joe Matthew alongside Julie Fine in Washington, This is Bloomberg. Thanks for listening to the Balance of Power podcast. Make sure to subscribe if you haven't already, at Apple, Spotify, or wherever you get your podcasts, and you can find us live every weekday from Washington, DC at Noontimeeastern at Bloomberg dot com.