Eric Cantor Talks US Economy, M&A Deals

Summary

Bloomberg Talks Podcast Summary

Episode: Eric Cantor Talks US Economy, M&A Deals

Date: December 12, 2025
Host: David Westin (Bloomberg)
Guest: Eric Cantor (Vice Chair, Moelis & Co.; Former House Majority Leader)

---

Main Theme

This episode features a candid discussion with Eric Cantor about the current state of the US economy, the surge in mergers and acquisitions (M&A), regulatory shifts under the Trump administration, government intervention in business, inflation, affordability messaging, and what to expect from fiscal and tax policy in the new year.

---

Key Discussion Points & Insights

1. M&A Activity & Market Optimism

• Robust Deal Pipeline:
  Cantor notes strong momentum in M&A activity as 2025 closes, crediting accommodative capital markets and optimism among businesses.

  "We're in the business of advising on transactions. Transactions are a tool for companies to accelerate growth, to figure out how to better position, to gain efficiencies..." (Eric Cantor, 00:50)

• Constructive Deal Environment:
  Both strategics (corporates) and sponsors (PE, VC) are actively engaged, leveraging various financial tools and strategies.

2. Investor Skepticism & Market Nuances

• Pushback on Pricing:
  Despite the optimism, Westin observes investors demanding better terms, as seen in recent deals like Broadcom and Oracle debt.

  "Investors are saying you need to pay up a little bit more." (David Westin, 01:19)
  Cantor responds that while activity is high, strategic planning and capital recycling needs are shaping the market (01:37).

3. Regulatory Shifts: From Biden to Trump Administration

• Changing Regulatory Tone:
  Cantor contrasts the "anti-business sentiment" of the prior administration with today's more constructive, deals-friendly environment.

  "You just don't have this overhang that you had in the prior Biden administration where, you know, there was really an anti-business sentiment." (Eric Cantor, 02:39)

• Ambiguity Remains:
  While regulatory pressure has eased, Cantor warns that unpredictability in Washington persists:

  "There is just sort of an acceptance that you're never really going to know for certain anything because of the way that...things are about in Washington." (Eric Cantor, 02:39)

4. Trump Administration's Approach: State Intervention & Deal-Making

• "New Breed" Trump Republicanism:
  Cantor, a traditional free-market Republican, admits the government's willingness to take equity stakes or impose tolls is unprecedented.

  "It's obviously something very new to me to see that the government wants to take a stake in a business and or a toll if it's an export. That is something that is obviously, and I think for the majority of the members that are in the Congress now, it is something that's very new." (Eric Cantor, 03:59)

• Comparison with Past Bailouts:
  He draws a distinction between the current approach and past bailouts, highlighting lack of clarity on the government's exit strategy:

  "The difference [is] before there was always sort of a path and a known path to an exit. And now not so clear." (Eric Cantor, 05:03)

• Focus on Strategic Sectors:
  Government interventions are concentrated in critical industries like AI and rare earths, aiming to preserve US security advantages over global competitors.

  "If you look at where the administration has been taking stakes, it's really in these industries that are critical to the national security...how do we go and continue to take the lead in these critical sectors vis a vis China and other bad actors." (Eric Cantor, 05:28)

5. Affordability, Inflation, and Political Messaging

• Response to Inflation Pressures:
  After lackluster off-year election results, Cantor praises the administration's nimble move to lift tariffs on 200 food items—including Brazilian beef—to provide holiday price relief.

  "There's a real inflationary pressure in the beef industry in this country. And I think the administration took the steps necessary to provide relief." (Eric Cantor, 06:25)

• Novel Messaging Tactics:
  The administration's talk of a "dividend from the tariffs" is cited as creative economic messaging:

  "He's talking about a dividend from the tariffs...that is something directly related to...how is a president supposed to bring down prices when we're in a free market." (Eric Cantor, 06:25)

6. Fiscal Stimulus, CapEx, and AI

• 2026 Outlook on Tax and Stimulus:
  The anticipated tax bill's benefits include accelerated deductions for capital expenditures, which Cantor predicts will drive infrastructure investment, notably for AI and power:

  "There's a tremendous tailwind we're going to experience from the ability to completely, you know, write off the expense up front." (Eric Cantor, 07:46)

• Expected Outcome:
  He expects an uptick in investment as businesses capitalize on these fiscal incentives.

---

Notable Quotes & Memorable Moments

• On Regulatory Environment:

  "There is just sort of an acceptance that you're never really going to know for certain anything because of the way that...things are about in Washington."
  — Eric Cantor, (02:39)

• On Government Taking Stakes:

  "It's obviously something very new to me to see that the government wants to take a stake in a business and or a toll if it's an export."
  — Eric Cantor, (03:59)

• On Market Pushback:

  "Investors are saying you need to pay up a little bit more."
  — David Westin, (01:19)

• On Economic Messaging:

  "He's talking about a dividend from the tariffs...that is something directly related to...how is a president supposed to bring down prices when we're in a free market."
  — Eric Cantor, (06:25)

• On Stimulus Tailwind:

  "There's a tremendous tailwind we're going to experience from the ability to completely...write off the expense up front."
  — Eric Cantor, (07:46)

---

Timestamps for Key Segments

• M&A Pipeline & Market Optimism – 00:50–01:19
• Investor Skepticism & Pushback – 01:19–01:37
• Regulatory Environment Shift – 02:20–02:39
• Trump’s Unique Approach to Business-State Interaction – 03:42–05:03
• National Security & Strategic Industry Focus – 05:11–06:07
• Inflation, Affordability, and Political Response – 06:07–07:33
• Fiscal Stimulus & Capital Expenditure Outlook – 07:33–08:18

---

Conclusion

This concise, high-energy conversation showcases Eric Cantor’s perspectives on the dynamic US M&A environment, the uniquely unpredictable yet pro-business regulatory landscape under President Trump, government intervention in strategic industries, and efforts to address affordability through tariff policy. Cantor blends insider insights from Wall Street and Capitol Hill, providing listeners with both macroeconomic context and sharp commentary on current political-economic strategies.

Transcript

[Narrator/Announcer]

Old playbooks won't solve tomorrow's problems. Indiana University is proving how higher education can create solutions with industry. Our partnerships address future talent and workforce needs, support entrepreneurs and local businesses, and create solutions that turn discoveries into dollars. Together, we're building a model for industry partnerships that fuel economic growth. Explore IU's [e-mail] impact.

[David Westin]

Bloomberg Audio Studios Podcasts Radio news Former House Majority Leader Eric Cantor joins us now currently of Mollus and I want to start on the economy and all of these deals that we see going on. I mean, is this just an incredibly robust deals pipeline on the heels of a benign economy and wide open capital markets?

[Eric Cantor]

I think you're right. I mean, I know our bankers are really busy as we come into the very end of the year running through the tape and so there's a lot of dialog. We're in the business of advising on transactions. Transactions are a tool for companies to accelerate growth, to figure out how to better position, to gain efficiencies. And as you say, there are accommodative capital markets right now too. And so we are seeing just a lot of dialogue, a lot of activity and I think a general optimism as we come to the new year.

[David Westin]

What's interesting is in markets right now you're seeing a bit of skepticism, pushback, Broadcom, perfect example of that. We also saw that with Oracle debt, investors are saying you need to pay up a little bit more. As vice chair of Mollus, are you seeing that pushback in any way, shape or form or deals just coming out of the woodwork in ways that they keep even your associates really well?

[Eric Cantor]

You know, I think if you look at the, if you look at the strategic sort of universe, I mean they are and have always had a list of where they're heading in terms of targets and the kind of deals they want to do. And certainly in the sponsor world, there are other sort of forces at work. You know, the need to recycle capital, you know, assets that may need to be to go into a continuation fund. There are all types of different tools available for clients, investors, sponsors, strategics. And as you say, I think overall the framework in the environment is more constructive. Now certainly Washington, when people look to the regulatory impact, we have sort of come out from under this very, very negative regulatory outlook that we had in the prior administration.

[Interviewer]

Talk a bit more about that. So when you're talking to executives about that regulatory environment, how would you describe it? I mean, we see some of these agencies where there's not a full panoply of commissioners. For instance, we heard from the treasury secretary, mayor, there's going to be some new corporate tax policies coming here into effect in the coming weeks. How much of it is still inchoate or clear for you at this point of where it's headed? Regulatory?

[Eric Cantor]

You know, I think with this president and this administration, I think there is just sort of an acceptance that you're never really going to know for certain anything because of the way that, you know, the rapidity that things are about in Washington, the way that President Trump sort of approaches, you know, the power he's got and the position, very unique. But I think on the whole it's a much more constructive regulatory environment and you just don't have this overhang that you had in the prior Biden administration where, you know, there was really an anti business sentiment. And if you just remember like eons ago, but with the likes of Lina Khan and Jonathan Kanter, they were sitting in these spots in the head of the antitrust regulators and they really definitionally said, if you are bigger, that is bad and therefore we're not really inclined to allow you to do it. Whereas this administration, it's not like it was under the Bush administration, but it's certainly much more constructive than they like to do deals.

[Interviewer]

As you've watched that parade of executives going through the Oval Office, some of whom are giving up equity stakes to the US Government, what are you thinking as a lifelong Republican, this kind of new, new breed of Trump Republicanism that involves, again, it's not dirigism, but it's sort of like the state is having a heavier hand in the way that these countries.

[Eric Cantor]

Well, it was mine. You know, David, I still remain a lim the government free market, Republican and conservative. So it's obviously something very new to me to see that the government wants to take a stake in a business and or a toll if it's an export. That is something that is obviously, and I think for the majority of the members that are in the Congress now, it is something that's very new. But I do think it's much more in keeping with what President Trump is about and what his career has been about. It's all about deal making. And I think if you look at sort of the intel situation and what happened there, it was more of a response to the disdain that the White House had for the CHIPS act and just giving away monies and instead say, hey, we need to do something for the taxpayers. Now, where I have an issue is the governance rights, you know, that is, you know, it's not as if the federal government has not stepped in before. I mean you and I were down there when the great financial crisis happened and, and we're allowed a lot of bailouts. You look at the airline industry, you look at the GSEs, I mean there's a lot of history.

[Narrator/Announcer]

History.

[Eric Cantor]

But the, but the difference this before there was always sort of a path and a known path to an exit. And now not so clear.

[David Westin]

Well, this is sort of the concern is that right now if you're putting an emphasis on dealmaking, deregulation and potentially jawboning the Fed to cut rates more aggressively at a time that the economy is still chugging along, at what point are you setting up the risk of that kind of scenario once again in 2027 or 2028?

[Eric Cantor]

Well, listen, I think this President has been very consistent in his message of growth and he wants growth. And that is the way, and that is where sort of the, the, the, the more traditional sort of conservative Republican can come along with the agenda because it is, we've always been about real growth comes from the private sector. And if you look at where the, the administration has been taking stakes, it's really in these industries that are critical to the national security. It is about AI related, it is about the rare ear. It is all about how do we go and continue to take the lead in these critical sectors vis a vis China and other bad actors.

[David Westin]

How do you think this administration has done with respect to messaging around affordability? This is something that has been dogging the administration quite a bit. Now we're talking about dolls and Christmas presents, but there is this issue of people aren't feeling great even though the economy is chugging around. What do you think, what do you think that Congress should be doing? How do you think the President should be messaging this?

[Eric Cantor]

Well, you know, it's interesting after the off year elections, one of which was in my state of virgin and the party didn't fare well, the President was fairly nimble and 10 days later turning around and taking the steps he did in lifting the tariffs on 200 food items and which directly impact people when they go into the grocery store to look to prepare for the holiday meals, including not just the things that we don't grow here, but like beef, right. And Brazilian beef. And there's a real inflationary pressure in the beef industry in this country. And I think the administration took the steps necessary to provide the relief. So I think you're going to see a lot more accommodation in terms of that as we head into the new year. And look, the president's also, this is something also very novel. David, back to your original point about the kinds of things this administration is doing. He's talking about a dividend from the tariffs. I mean, but that is something directly related to, to the issue, Lisa, you bring up, and that is how is a presence supposed to bring down prices when we're in a free market, don't.

[Interviewer]

Have a whole lot of time left. But I want to ask you about the prospect of the fiscal stimulus in the new year from the tax bill. I mean, the president talks about so much, maybe he hasn't been focused enough sort of on the potential benefits of that for ordinary Americans. How do you see that playing out in the year ahead?

[Eric Cantor]

Look, the what's going on with AI and with CapEx now necessary to bring about this infrastructure, not just in the data center piece and all that, but on the power end of things. I mean, there, there is a tremendous tailwind we're going to experience from the ability to completely, you know, write off the expense up front. So, you know, I do think, and I think most economists will say there will be an uptick in terms of what that will do to increase people's willingness to go and put capital to work.

[David Westin]

Vice Chair Erica Kanter of Mullis and Company, also the former House Majority Leader, thank you so much for being with us this morning.

[Eric Cantor]

Happy holiday.

[Narrator/Announcer]

This podcast is brought to you by FedEx the new power Move. Hey, you know those people in your office who are always pulling old school corporate power moves? Like the guy who weaponizes eye contact. He's confident, he's engaged, he's often creepy. It's an old school power move. But this alpha dog laser gaze won't keep your supply chain moving across borders. The real power move? Having a smart platform that keeps up with the changing trade landscape. That's why smart businesses partner with FedEx and use the power of digital intelligence to navigate around supply chain issues before they happen. Set your sights on something that will actually improve your business. FedEx, the new power move.