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- [00:00]
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- [00:28]
Bloomberg Balance of Power Intro Announcer
Bloomberg Audio Studios podcasts Radio news. You're listening to the Bloomberg Balance of Power podcast. Catch us live weekdays at noon and 5pm Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.
- [00:50]
Joe (Host of Balance of Power)
I'm going to have to do some clicking around the dial tonight to find, I guess, Jimmy Kimmel. Not that I've been up that late in the last 20 years, but you know, we could record it and watch it back. The the president would, I'm guessing, be one to watch this, right? You can't see it in Washington, D.C. that local station is owned by Sinclair, I guess. So we're not going to be doing any Channel 7 Jimmy Kimmel here. It makes life interesting. And you know, was this part of the idea to make it even more taboo? We'll find out together a little after 11:30 tonight. Thanks for being with us here at High noon on the east coast. On Balance of Power on Bloomberg Radio satellite radio channel 121 on YouTube. Search Bloomberg Business News Live to watch the radio show on tv. Or maybe you're already on Bloomberg Originals where you can find us every day. These are the two things I got from the United Nations, a bad escalator and a bad teleprompter. The words of Donald Trump as he spoke before the UN General Assembly. Almost an hour long, 56 minutes. And joining me in Washington once again today is Bloomberg's Mario Parker, who's covered a couple of Trump speeches in his tenure. I don't know where to start here. We're going to talk to Tyler, who's actually at the UN Mario. But that was a new level, I feel like for the president. How about you?
- [02:05]
Mario Parker (Bloomberg Reporter)
It was a new level on the global stage, Joe. But indistinguishable from some of his campaign stump speeches. Right?
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Joe (Host of Balance of Power)
Fair enough.
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Mario Parker (Bloomberg Reporter)
Casting migration as an existential crisis to civilization, speaking about America first in some terms as well, defending America and its right to kind of go rogue and go it alone. Y I mean, but to the extent that he broke some of the norms at the UN Name checking some of the countries as opposed to his political enemies as well. That's some new territory.
- [02:38]
Joe (Host of Balance of Power)
Some new territory. And we'll give you a taste of what the president said just a short time ago in front of the green marble in Turtle Bay. Let's watch and listen.
- [02:46]
Donald Trump (President of the United States)
We have reasserted that America belongs to the American people. And I encourage all countries to take their own standards in defense of their citizens as well. You have to do that because I see it. I'm not mentioning names. I see it. And I could call every single one of them out. You're destroying your countries. They're being destroyed. It's time to end the failed experiment of open borders. You have to end it now. See, I can tell you I'm really good at this stuff. Your countries are going to hell.
- [03:21]
Joe (Host of Balance of Power)
That is the takeaway from a 56 minute speech. Your countries are going to hell. Bloomberg's Tyler Kendall is spending the week at the United Nations General assembly and joins us from outside the UN In Turtle Bay right now. Tyler, how did this speech go over?
- [03:36]
Tyler Kendall (Bloomberg Reporter at UN)
Well, Joe, it was really met with silence in the room for many of these countries that were watching. Some moments of laughter. Perhaps you had mentioned the issue with the prompter at the beginning. But as you said to start this segment, it's really hard to know where to start here because President Trump did hit on some moments of real, tangible policy that we can get into. But perhaps we should start by talking about the broader backdrop, this harsh criticism that he levied against the United nations as an institution widely expected that this was going to go this way because we know leading up to this, the US has actually suspended all of its payments to the United Nations. Combine that with past delinquencies from other administrations. Right now, the US is on the hook for more than $3 billion in dues and bills to the United Nations. So this has been something that the administration is actually repeating when it comes to a trend in its rhetoric from the first Trump administration. I know you're going to catch up with Adam, but I will quickly cite our analysts at Bloomberg Economics, which say that the UN with or without the US Was already in trouble. Back in January, we knew that the secretary general had declared a liquidity crisis. Now, even amid this really staunch criticism for the United Nations, President Trump saying that the UN Is only empty words. Actually, it appears that reporters were able to catch up with the president after his speech and he was with the secretary General of the UN and he said, quote, I think the potential of the United nations is incredible, truly incredible. It can do so much. So I'm behind it. I may disagree with it sometimes, but I am so behind it. So perhaps a little bit different, a lesser, a lesser take there than what we heard from President Trump during his remarks in the room.
- [05:21]
Edgar Rinkevich (President of Latvia)
Yeah.
- [05:23]
Joe (Host of Balance of Power)
Fascinating stuff. Tyler, thank you so much for being there for us. Joining us from New York at the UN Tyler Kendall, as we add the voice of Adam Farrer, as promised. Bloomberg Economics Senior Geo Economics Analyst it's great to have you, Adam. I know you were watching and listening along with us. Just stylistically speaking, the impact that this made in a room full of pretty straight faces, what did we just see?
- [05:47]
Adam Farrer (Bloomberg Economics Analyst)
So I think to start with, in many ways what we saw was a highlight reel for President Trump. I think, Mario, you already highlighted a little bit at the beginning that this felt very familiar for those of us who have watched President Trump give speeches, particularly given, for better or worse, this teleprompter issue that he suffered, despite the UN Insisting afterwards that the teleprompter was working. But, you know, looking back to his previous speeches and particularly from his first term, it just, it had a feeling that the room took him more seriously this time, that despite, I think there being lots of reticence about the approach that he and the United States are taking on international politics, trade and engagement in military affairs, that they're unsure of how to approach him and aren't willing to laugh at what they see as big changes in policy or things that even seem laughable in general. Now, in terms of topic areas, what was most interesting to me was that we didn't actually break a lot of new ground. Right. One of the things we were looking for, and as Tyler was just mentioning, was some change potentially in how the United States was going to approach the United nations itself. There's been an ongoing review at the State Department and across the US Government about how the United States will engage with different multinational organizations, including all of the different parts and bodies of the UN and here we just didn't get anything really. You know, certainly we had broad ranging attacks on the United nations, efforts by the president to kind of put himself as the alternative to the United nations, right. Laying out the seven conflicts that he has addressed, he has solved and that the United nations has not. But at the same time, no decision, particularly on funding or specific organizations that the US Might withdraw from.
- [07:28]
Mario Parker (Bloomberg Reporter)
Adam, do we have a sense, and you kind of hinted at it as well. Do we have a sense? I mean, one of the things, one of the notes in the speech was the attacks on coal and climate change, excuse me, defending coal and attacking climate change. Essentially, the way I read it was that he was also signaling that the US Is open for business as well. How much do you think that trade deals will come up on the sidelines of or economic statecraft will come up on the sidelines of some of these bilats?
- [07:55]
Adam Farrer (Bloomberg Economics Analyst)
I think it's at the center of almost everything he's doing in the engagement. And, you know, to the point of what we were talking about before, maybe that was also surprising is that trade in and of itself was a very small portion of this speech with, you know, his own avowed focus when he issued his tweet, or, excuse me, his truth afterwards, that this speech was about energy and migration, not about trade. But when he gets in the room with these leaders, it's going to be all about trade and all about trying to both move forward on the deals that are already on the table, many of which still haven't been signed, and to get new carve outs, new efforts to improve the relationship with the United States. And I think you're right, he tried to make clear that the United States has a model that others should follow, and that is strong borders and, you know, traditional energy sources. But also on trade, it's about, you know, rectifying the balance and the scale. So I think he'll certainly be focused on those issues.
- [08:46]
Joe (Host of Balance of Power)
Looking at some of the folks he is meeting with, it's Milei from Argentina. He's got a Middle east peace conference, as the administration is calling it. The leaders of eight Muslim majority countries, including Saudi Arabia, Turkey, Qatar, but also Volodymyr Zelensky. And I wonder, after what we heard the president say about Vladimir Putin today, if that meeting could bring some progress to ending the war in Ukraine.
- [09:07]
Adam Farrer (Bloomberg Economics Analyst)
So Zelensky was in the room. Cameras panned to him during that portion of the speech. I think certainly he had nothing to do. Trump didn't give Zelensky new worries in the speech. We didn't hear anything new there. He did express his deep frustration with President Putin, which, you know, again, is a good sign coming off of what was a whirlwind in August with President Trump meeting Putin in Alaska, having such positive things to say despite any real progress, and then his quick meetings the following week with Zelenskyy and European leaders, where they set out a plan to implement a peace agreement and bring Zelensky and Putin to the table, which so far hasn't happened. But then what Trump pivoted to was this, you know, decision that he would put real tariffs, as he said, real punishment on countries to force Putin back to the table, but only if Europe takes drastic actions to decrease its reliance on oil, which it has already done so far.
- [10:05]
Joe (Host of Balance of Power)
Interesting that he suggested he just found out about European nations buying oil from Russia, which was curious. Mario, Great conversation as always with Adam Farah. Thank you Adam. Bloomberg Economics Stay with us On Balance of Power we'll have much more coming up after this.
- [10:24]
Amazon Business Announcer
How can you free your team from time consuming office tasks? Amazon Business empowers leaders to not only streamline purchasing but but better support their teams. Smart business buying tools enable buyers to find and purchase items fast so they can focus on strategy and growth. It's time to free up your teams and focus on your future. Learn more about the technology, insights and Support available@AmazonBusiness.com youm're listening to the Bloomberg.
- [10:51]
Bloomberg Balance of Power Intro Announcer
Balance of Power podcast. Catch us live weekdays at noon and 5pm Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa.
- [11:06]
Joe (Host of Balance of Power)
Play Bloomberg 1130 on balance of power we're live in Washington on Bloomberg TV and radio live as well on YouTube and Bloomberg Originals and satellite radio channel 121. Thank you for being part of our conversation today as we try to unpack the words of President Trump. That's how we started the broadcast a bit earlier today with President Trump at the United Nations. We're going to assemble our panel next to get their take on a speech that many I guess saw coming. It is President Trump after all, but a thumbing of the nose, for lack of a better phrase, at the globalists he referred to in the room. Here's a taste of the President earlier today in New York.
- [11:45]
Donald Trump (President of the United States)
We have reasserted that America belongs to the American people and I encourage all countries to take their own standards in defense of their citizens as well. You have to do that because I see it. I'm not mentioning names, I see it and I can call every single one of them out. You're destroying your countries. They're being destroyed. It's time to end the failed experiment of open borders. You have to end it now. See, I can tell you I'm really good at this stuff. Your countries are going to hell.
- [12:19]
Joe (Host of Balance of Power)
Going to hell was the message for those in the room. More than 100 world leaders gathered in New York and we play it to the panel now. Bloomberg Politics contributors Jeannie Shanzano and Rick Davis are with us. Rick is our Republican strategist and partner at Stone Court Capital. Jeanne is our Democratic analyst and democracy. Visiting fellow at Harvard Kennedy School's Ashe Center. Rick, what was that? Did the president plan to give the room a middle finger today?
- [12:48]
Rick Davis (Republican Strategist)
Well, for sure, right? I mean, he actually pretty much read the speech that he planned to give, even though there was some veering off script from time to time. And it was clearly a doctrinal speech about America First. The themes he struck on immigration and security and climate all come right out of the America first playbook. And I would say, if you believe in American exceptionalism, if you believe in the fact that America is the greatest country for good in the world and that much of the prosperity and safety that we've experienced since World War II has been because of our leadership around the world, you would have been aghast by the speech today. Big step backwards with the people who believe in that kind of concept for America.
- [13:38]
Donald Trump (President of the United States)
Yeah.
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Joe (Host of Balance of Power)
We're going to be, by the way, speaking in just a couple of moments with the President of Latvia, and we'll be curious to get his reaction. He's at the UN Right now. Jeannie. The president spoke directly to the organization itself, not only the members who were in the room asking, what is the purpose of the United Nations? All they seem to do is write a really strongly worded letter. Is there some truth to that?
- [14:01]
Jeannie Shanzano (Democratic Analyst)
It's the 80th anniversary of the U.N. i would have liked to hear what the plan for the US Is in terms of seeing the UN into the future. The president is right. Reforms are necessary. But unfortunately, he spent, what, Joe, five minutes talking about how aggrieved he was that over the last 20 years, the UN has failed to take him up on his offer to redecorate and renovate the U.N. i mean, for those of us who watch Trump on a daily basis, none of this was new. But once you got past the teleprompter, the escalator, and the renovations of the U.N. what we're left with is a world that seven, eight months into his administration and is less safe, and the United States place in it is less safe than we were when he started. And that's why what was stunning is not only Nothing on the 80th anniversary, but what about China? He barely mentioned our major competitor in China. Almost nothing on Russia, but a lot of vitriolic language on our closest allies, who he says are going to hell.
- [15:04]
Joe (Host of Balance of Power)
Talked about climate change at length, Rick, calling it the greatest con job ever perpetrated on the world. He said that the Biden administration had lost more than 300,000 children to human trafficking and that Many countries were on the brink of destruction due to their reliance on green energy. You mentioned a couple of years ago this speech would have played very differently for those in the room. Does he not need to back up any of those statements?
- [15:33]
Rick Davis (Republican Strategist)
Well, he won't. I mean, I think we have enough of a track record with Donald Trump to know that he's going to let the fur fly. Right. And it doesn't have to be accurate. You know, he's making a point. He would even say, I'm just, you know, hyperbole is my friend. You know, sometimes I exaggerate. But, you know, look, I mean, this was a speech full of factual inconsistencies. The case on climate today was exceptionally strong from his point of view. I mean, it took up a lot more of the time at the UN Speech than it would have, I thought, been granted by him. And, but full of inconsistency. He loves to rail about China, you know, not having any wind power. Why would we have any? And of course, they're the leader in the world on wind power. So, I mean, unless you put a filter on this, you would look at the world much differently by the kind he described.
- [16:30]
Joe (Host of Balance of Power)
As the President now heads for his meeting with Muslim leaders and a reception of world leaders this evening before heading back to Washington, D.C. it's a great pleasure to be joined by the President of Latvia. President Edgar Renkovich is with us live from the United nations in New York on this important day. And Mr. President, we welcome you to Bloomberg TV and Radio. The President in a news conference just a moment ago, as you were sitting down to talk with us on Bloomberg, said that NATO countries should shoot down aircraft entering their airspace. Of course, referring to the Russian incursions on Polish airspace as well as Estonian airspace. Is your country prepared if that happens?
- [17:16]
Edgar Rinkevich (President of Latvia)
Well, actually Latvia as well as other Baltic states are under the NATO air patrolling mission. So that kind of decision should be taken by NATO command. But I think that President, President Trump and other leaders who have expressed their views on this issue are right. If Russian aircraft keep flying, keep violating our airspace, NATO's airspace, then the only way how to stop them is to show force. And from that perspective, I would say that we are going to push for more stringent NATO policy in this regard.
- [17:55]
Joe (Host of Balance of Power)
Interesting. I'd love if you have more details on those changes and the potential for increasing air defenses along the Russian border. Is there a way to deter Russia from flying these missions?
- [18:09]
Edgar Rinkevich (President of Latvia)
Yes, yes, there is. Actually, we have two issues here. Number one, it's drones that have been flying into The Polish, Romanian, also Latvian territory. Mostly we have seen those kind of incursions as tests and here more anti drone defense is needed. Actually that's a bit also the kind of race when it comes to Technologies. Number two, it's what happened with Estonia. MIGs flying into the Estonia territory. And here as I said, to some extent the Baltic states are in a very peculiar position because we do not have our fighters since we joined NATO back in 2004, there is so called Baltic air policing mission. What has been decided that that policing mission will become a full fledged air defense mission. And then I think that rosa of engagement need also to be upgraded in a way that if Russians continue then yes, indeed, the opening of fire would be an alternative. Can we stop Russians? Yes, we have seen what happened with the Baltic Sea. A couple of months ago we had many incidents with underwater infrastructure when so called Baltic Century missions started. More ships, NATO ships patrolling the Baltic Sea. All of a sudden the pattern changed. The problem with Russians is that they are going to stop incursions in the Baltic or in the NATO airspace if they see show of force. But at the same time they are going to find other ways how actually to test and to challenge the alliance.
- [19:59]
Joe (Host of Balance of Power)
So are you essentially President Reinkevich describing a no fly zone for Eastern Europe, for border nations that NATO would work together on? Is that how you defend the skies?
- [20:13]
Edgar Rinkevich (President of Latvia)
Not exactly. No fly zone. No fly zone would mean that actually we stop flying all aircraft, civilian friendly, NATO aircraft. I'm advocating for much stringent defense policy of the alliance, as we just discussed.
- [20:33]
Joe (Host of Balance of Power)
I want to ask you about the idea of a drone wall. Baltic countries are apparently having this conversation, a system that would take down any drones that cross the border. Are you involved in those discussions? Could that be made reality?
- [20:48]
Edgar Rinkevich (President of Latvia)
Yes, indeed, we are talking about that. Indeed we are learning a lot from Ukrainians, Ukrainian experience. But of course we also see that development of technology at this time is so quick that actually it's quite challenging to find the right approach. But indeed the Baltic nations or eastern flank nations are discussing also the drone wall as well as actually counter mobility measures against any possible Russian incursion if that may happen.
- [21:20]
Joe (Host of Balance of Power)
I'm sure you heard the President's speech earlier, President Trump's speech before the United Nations, Mr. President. He spoke about the potential for secondary sanctions against Russia, but said he would only put them in place if European nations stopped buying Russian oil. What is your reaction to that?
- [21:39]
Edgar Rinkevich (President of Latvia)
I'm absolutely supporting that proposal by President Trump. Actually that way along other countries that are bordering Russia have been advocating for stopping buying Russian oil and gas since 2022. We actually made that decision when the Russians started their full scale aggression back in February 2022. So from that point of view, I do believe that President Trump is right. I do believe that all European nations must stop buying Russian oil and gas and they must stop financing Russian war machines. So from that point of view, there is a point in what President Trump said in his address to the United Nations General Assembly.
- [22:22]
Joe (Host of Balance of Power)
Well, what are you hearing, President, from your NATO allies who are in fact purchasing Russian oil, will they make that commitment?
- [22:32]
Edgar Rinkevich (President of Latvia)
Well, I think that if there is a clear position from the United States, if other EU nations or NATO European allies do stop buying Russian oil and gas and there is no alternative, it's US LNG, by the way, Latvia is buying currently around 75% of the United States liquefied natural gas, then I think that those countries may change their mind. And I think that the position of the United States in this matter is very relevant. So I do hope that all capitals in Europe are hearing the statement from the United States at this point.
- [23:19]
Joe (Host of Balance of Power)
Well, there's a story coming out of the Pentagon here in Washington. The Department of Defense is pulling back on funding for programs on NATO's eastern flank, including the Baltic Security Initiative, which would impact your country. Are you hearing directly from the Pentagon on this and can countries like yours make up the difference?
- [23:41]
Edgar Rinkevich (President of Latvia)
Well, we are in discussions with our colleagues in the United States Department of War. And at this point I would say that we are very grateful to the United States for all the assistance the country has provided to Latvia since the establishment of our independence. But we are also working with the Congress and I do hope that we are going to find the solution where we are going to continue this cooperation. Let me say that actually when it comes to the US Aid in this regard, then we are mostly buying the US Equipment and also we are then financing that purchase also not only from US Funds, but also Latvian or the Baltic funds. So this is where we are in the process. So I can't confirm that the kind of final decision has been made. And I do understand the push from the United States when it comes to more financing. But let me remind the viewers of Bloomberg also that countries like Latvia currently spend almost 5% on defense of GDP because we understand what capabilities we need. And I do hope that also this message is going to be heard in US Government as well.
- [24:56]
Joe (Host of Balance of Power)
Spoken like the president of a frontline nation sharing a border with Russia, certainly. I'm curious, Mr. President, what your thought was on the message today from President Trump, he spoke to the room, he said, your countries are going to hell. Was that the message that you needed to hear today?
- [25:18]
Edgar Rinkevich (President of Latvia)
I think that the United nations is great place where different opinions, different views are being expressed. And I think that sometimes, frankly, I'm attending those UNGA meetings in different capacities as the foreign minister before I became president since 2009. And sometimes you will probably need to get kind of very strong language to wake up. But definitely, I hope that we are going to find common language with everyone in the room when it comes to the critical issues of the global development, be it climate change or be it other issues. However, I think also that one. One thing that is currently an issue here with the United States is that this organization needs reform, Be it UN Security Council. We see that when it comes to the war in Ukraine or it used to be Syria a couple of years ago, this organization was not capable to deal with challenges that actually it was created for.
- [26:27]
Joe (Host of Balance of Power)
That's a very diplomatic answer, Mr. President. President Trump referred to many countries on the brink of destruction. Well, that's true. Due to their use of green energy. Does he have the wrong or the right idea there?
- [26:44]
Edgar Rinkevich (President of Latvia)
I think that this discussion about climate change and what should we do is now developing. And, you know, from time to time, we get into extreme. Sometimes we get into extreme that we are all going to die immediately. And then we do some policies that hindsight seem to be not so clever, and then we probably change the tone. In my own country, we have now that debate as well. What should we do and are we exaggerating? So from that point of view, I think that the climate change is real. The issue is how you deal with that, whether those policies we are agreeing are the right ones, whether windmills are the right answer. Back home, we have the same debate. I would actually be happy to continue that discussion. And probably in this kind of clash of opinions, we can probably find the right policy as well.
- [27:41]
Joe (Host of Balance of Power)
Yeah. Interesting. Before you leave us, Mr. President, and get back to your meetings at the U.N. i want to get back to where we started, and that is the looming threat from Russia and specifically from Vladimir Putin. What is the message from your country, from you to Vladimir Putin as he considers pushing the line, as we've been referring to it in countries like Latvia, if he decides to fly into your airspace, if he sends drones or aircraft, what would be your warning ahead of that decision?
- [28:14]
Edgar Rinkevich (President of Latvia)
My warning would be learn from history. Because pushing the envelope, crossing the line at one point means that you are losing everything. And I think that the message that we are hearing from NATO allies, from President Trump, from President Erdogan, from other leaders of the alliance are very, very clear messages. So don't even.
- [28:38]
Joe (Host of Balance of Power)
President Edgar Zrinkovich, the President of Latvia, with us live from the United nations, the General assembly underway now in New York. Mr. President, thank you for the insights and for spending time with us today on 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 D.C. at Noontime eastern@bloomberg.com.
- [29:02]
Amazon Business Announcer
How can you free your team from time consuming office tasks? Amazon Business empowers leaders to not only streamline purposes purchasing, but better support their teams. Smart business buying tools enable buyers to find and purchase items fast so they can focus on strategy and growth. It's time to free up your teams and focus on your future. Learn more about the technology, insights and Support available@AmazonBusiness.com Every business has an ambition.
- [29:29]
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