00:00:02 · S0, Patrick McHenry, Ron Brownstein, Kailey Leinz, David Gura
[00:00:02] S0: Bloomberg Audio Studios. [00:00:04] S1: Podcasts. [00:00:05] S2: Radio. [00:00:06] S0: News. This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world. [00:00:19] S3: It's election night in America. I'm Kailey Leinz alongside David Gura. We've been following the dramatic developments throughout the night. National Democrats proving the polls were right all along. Sweeping the House and Senate polls. taking control of Congress for the final two years of President Trump's second term. Again, both the House and Senate does look like it will be under Democratic control come January. But races were won by Democrats in places that they didn't dream of having a chance just a few months ago. We are talking deep red states like Kansas, like South Carolina, in which Democrats have been able to pull off. Senate victories. You take those two with the number of other battleground states we understood coming in. [00:00:57] S4: The night starting off with an emphatic start in Georgia with Jon Ossoff winning that race there. But as you mentioned, South Carolina, really something sort of sent a sort of charged atmosphere through the room when that happened. That was unexpected as we consider the legacy that Lindsey Graham had in the U.S. Senate and the expectation here that his sister, who was appointed by the president, be able to hold on to that scene.
00:00:57 · David Gura, Kailey Leinz
[00:00:57] S4: The night starting off with an emphatic start in Georgia with Jon Ossoff winning that race there. But as you mentioned, South Carolina, really something sort of sent a sort of charged atmosphere through the room when that happened. That was unexpected as we consider the legacy that Lindsey Graham had in the U.S. Senate and the expectation here that his sister, who was appointed by the president, be able to hold on to that scene. [00:01:16] S3: And of course, control of Congress is crucially important. But gubernatorial victories have also gone to Democrats in a number of critical states, including in Texas and Georgia. Important because those two are two of the epicenters of the data center build out in both of the Democratic candidates campaigned in part on a platform of reining in data centers or at the very least slowing their development until more clear rules to protect the communities into which they are going. are in place. It has major implications, of course, for something that has been a juice of GDP growth in the U.S. as of late and may have contributed to some of the market jitters we saw earlier on this evening as the results started to come in, though, of course, futures have recovered somewhat from the losses we initially saw down just about half a percent now on the NASDAQ 100.
00:01:16 · Kailey Leinz, David Gura
[00:01:16] S3: And of course, control of Congress is crucially important. But gubernatorial victories have also gone to Democrats in a number of critical states, including in Texas and Georgia. Important because those two are two of the epicenters of the data center build out in both of the Democratic candidates campaigned in part on a platform of reining in data centers or at the very least slowing their development until more clear rules to protect the communities into which they are going. are in place. It has major implications, of course, for something that has been a juice of GDP growth in the U.S. as of late and may have contributed to some of the market jitters we saw earlier on this evening as the results started to come in, though, of course, futures have recovered somewhat from the losses we initially saw down just about half a percent now on the NASDAQ 100. [00:02:00] S4: We look at those races in the House that have been called 215 seats for Democrats, 127 for Republicans, so 93 that are outstanding here. But of course, the projection is Democrats are going to substantially control the House of Representatives. Kailey, we heard from Hakeem Jeffries, the presumptive Speaker of the House earlier tonight, talking about the way in which he plans to govern going forward. As we've been discussing over the course of the last hour here, he has a substantial margin now. It's not going to be a difficult row for him to hoe here to try to rally his caucus behind him.
00:02:00 · David Gura, Kailey Leinz
[00:02:00] S4: We look at those races in the House that have been called 215 seats for Democrats, 127 for Republicans, so 93 that are outstanding here. But of course, the projection is Democrats are going to substantially control the House of Representatives. Kailey, we heard from Hakeem Jeffries, the presumptive Speaker of the House earlier tonight, talking about the way in which he plans to govern going forward. As we've been discussing over the course of the last hour here, he has a substantial margin now. It's not going to be a difficult row for him to hoe here to try to rally his caucus behind him. [00:02:26] S3: And let's turn now to our political panel who's joining us here at World Headquarters in New York. Patrick McHenry, former chair of the House Financial Services Committee and House Speaker Pro Tem, alongside Adam Hodge, managing director at Bully Pulpit International and a Democratic strategist. Both of them are Bloomberg contributors. Troy Jackson is making promises about what he's going to do when he takes the oath and sits in this seat in January. Tallarico was doing the same thing. All of these candidates have big hopes for what happens a couple months from now. But we still have to finish out this congressional session before that happens. And Mr. Chairman, I'll come to you first. This lame duck is going to be potentially a very ambitious one for Republicans as they hold on to their last breaths of power, at least for the time being. What realistically can we expect to get accomplished in their remaining time?
00:02:26 · Kailey Leinz, Patrick McHenry, S0
[00:02:26] S3: And let's turn now to our political panel who's joining us here at World Headquarters in New York. Patrick McHenry, former chair of the House Financial Services Committee and House Speaker Pro Tem, alongside Adam Hodge, managing director at Bully Pulpit International and a Democratic strategist. Both of them are Bloomberg contributors. Troy Jackson is making promises about what he's going to do when he takes the oath and sits in this seat in January. Tallarico was doing the same thing. All of these candidates have big hopes for what happens a couple months from now. But we still have to finish out this congressional session before that happens. And Mr. Chairman, I'll come to you first. This lame duck is going to be potentially a very ambitious one for Republicans as they hold on to their last breaths of power, at least for the time being. What realistically can we expect to get accomplished in their remaining time? [00:03:09] S1: Well, I think they're far less ambitious as the night is taking it out of them. [00:03:15] S0: Right. [00:03:15] S1: And on a night like this, the vibes going back to D.C. among Republicans who are in the majority in the House and the Senate. and do have an ambitious agenda, will be of utter dejection. This is not some marginal outcome. This is one where your party's been repudiated. [00:03:31] S0: It hurts.
00:03:31 · S0, Patrick McHenry, David Gura
[00:03:31] S0: It hurts. [00:03:33] S1: And it's very difficult to think clearly when you are in pain and grieving. And so what is on the agenda here for the lame duck is the National Defense Authorization Act that the Congress has passed. every year since Truman was president. I think they'll prioritize that. I think they'll prioritize a continued resolution to punt this into keeping the government open into next year. Mind you, it was a fight with the Democratic Party and President Trump that resulted in the largest government shutdown this Congress. in American history. So I think we're going to see more of that next year. But you'll have a CR, National Finance Authorization, a CR, and perhaps a permitting reform bill that has been prioritized by soon-to-be whip Brian Schatz. [00:04:19] S4: Adam, you gave your props a minute ago to Hakeem Jeffries and the focus that these Democratic candidates had. I noticed that when I interviewed them, affordability was often the first or second word that came out of each candidate's mouth. How does he maintain that focus among his caucus going forward here as he tries to prioritize a policy agenda for them?