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<v Speaker 1>You're listening to KFI Am sixty Wake Up Call with

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<v Speaker 1>me Amy King on demand on the iHeartRadio app. It's

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<v Speaker 1>five o'clock straight up, Good morning. It's Monday, Yeah, Happy,

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<v Speaker 1>Happy Monday. The date is June second, so we will

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<v Speaker 1>no longer be referring to all these icky low clouds

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<v Speaker 1>as May gray. It is officially June gloom. Yeah, and

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<v Speaker 1>we have a nice thick layer of it this morning

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<v Speaker 1>in some areas.

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<v Speaker 2>That's okay. It's gonna be sunny this afternoon. It's gonna

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<v Speaker 2>be gorgeous.

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<v Speaker 1>Still hacking away from the remnants of my cold. So

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<v Speaker 1>if it goes quiet for a second, that's why.

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<v Speaker 2>It's not quiet on my end. I'm just who last yet.

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<v Speaker 2>It's a hack, that's all it is.

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<v Speaker 1>It's beautiful, still watching for sunny and Gizmo our eaglets.

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<v Speaker 2>They did not want to fly, so you know.

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<v Speaker 1>Sonny lifted off last week a couple of times actually,

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<v Speaker 1>but they stayed close to home for the weekend.

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<v Speaker 2>So is today the day? We don't know.

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<v Speaker 1>It could happen anytime, anytime right now. I think that

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<v Speaker 1>they just like hanging out with each other. And we

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<v Speaker 1>found out that their sisters they don't know unless they

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<v Speaker 1>actually do DNA testing, but they believe because of there's

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<v Speaker 1>certain things, including their vocalizations and that kind of.

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<v Speaker 2>Stuff, that they are both girls. Okay, sisters, Okay. Anyway,

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<v Speaker 2>here's what's ahead on wake up called.

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<v Speaker 1>LA. Mayor bass Is called for an emergency meeting a

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<v Speaker 1>city hall to evaluate security in LA following what's been

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<v Speaker 1>described as a terror attack on Jewish demonstrators in Boulder, Colorado.

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<v Speaker 1>A man used a makeshift flamethrower to attack a group

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<v Speaker 1>that was demonstrating in support of the release of the

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<v Speaker 1>remaining Israeli hostages.

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<v Speaker 2>Eight people were hurt.

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<v Speaker 1>A man's been rescued from twenty feet up a tree

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<v Speaker 1>in the Hollywood Hills, LA Fire says the man was

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<v Speaker 1>in medical distress yesterday afternoon on North Mount Olympus Drive.

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<v Speaker 1>Firefighters were able to get the thirty year old down

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<v Speaker 1>from the tree canopy.

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<v Speaker 2>He was taken to the hospital.

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<v Speaker 1>Not clear if he was working at the time or

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<v Speaker 1>how he got stuck in the tree. Fire officials investigating

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<v Speaker 1>a fire at an Amazon warehouse near Glendale in which

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<v Speaker 1>eight vehicles were destroyed and two were damaged. The fire

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<v Speaker 1>happened around one thirty yesterday morning on West San Fernando Road.

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<v Speaker 1>All the delivery vans were empty at the time. Ukraine

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<v Speaker 1>may be down, but it's not out. It hit Russia

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<v Speaker 1>and hit hard over the weekend. ABC's Patrick Reevel's going

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<v Speaker 1>to join us in just a couple of minutes to

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<v Speaker 1>give us the latest on that Trump's got a new

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<v Speaker 1>tariff plan for the European Union and it is supposed

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<v Speaker 1>to kick in quick. ABC's Karen Travers has the latest

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<v Speaker 1>on that that's happening at five point twenty. At the

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<v Speaker 1>bottom of the hour, ABC's Jim Ryan is going to

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<v Speaker 1>join us to tell us why now is the time?

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<v Speaker 1>Now is the time to change all your passwords and

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<v Speaker 1>with a razor thin margin for error, some republic and

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<v Speaker 1>Senators continue their pushback against the presidents so called Big

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<v Speaker 1>Beautiful Bill. ABC's Stephen Portnoy will help us sort through that.

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<v Speaker 1>He's so good at helping make sense of these crazy, crazy,

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<v Speaker 1>intricate and complicated deals. Well, say good morning to ABC's

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<v Speaker 1>Patrick reveal Patrick. Ukraine may be down, but they showed

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<v Speaker 1>this weekend that they're not out.

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<v Speaker 2>What happened over the weekend.

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<v Speaker 3>Hi, Ami, Yeah, absolutely, an extraordinary attack took place as

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<v Speaker 3>we can both extraordinary in its results but also in

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<v Speaker 3>how it took place. Basically, Ukraine succeeded in smuggling in

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<v Speaker 3>dozens of.

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<v Speaker 4>Commercial cord Copter drones into Russia and then launching this

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<v Speaker 4>incredible surprise attack against four of Russia's most important strategic

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<v Speaker 4>air bases across the country, some one up in the Arctic,

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<v Speaker 4>one thousands of miles from Ukraine deep in Siberia, and

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<v Speaker 4>these bases are home to Russia's strategic bomber fleet. These

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<v Speaker 4>are the long range bombers used to launch cruise missiles

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<v Speaker 4>at Ukraine, but are also the same type of aircraft

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<v Speaker 4>that are used for Russia's nucleated terrein These are the

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<v Speaker 4>type of planes that fly to Alaska, for example, and

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<v Speaker 4>force the US to scramble jets. And the damage that

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<v Speaker 4>Ukraine was able to inflict is remarkable. You know, we've

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<v Speaker 4>seen not only videos from the drones over the weekend,

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<v Speaker 4>but also this morning we've seen satellite imagery that suggests

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<v Speaker 4>that at least twelve of Russia's heavy long range bombers

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<v Speaker 4>have been destroyed at just two of these airfields. And

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<v Speaker 4>to put in perspective, there's only a few dozen of

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<v Speaker 4>these aircraft, and they haven't really built many of them

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<v Speaker 4>since the Cold War because they're so expensive and they're

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<v Speaker 4>so difficult to replace, and so basically the equivalent of

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<v Speaker 4>the US is B fifty two's and so to suffer

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<v Speaker 4>this extraordinary attack where you know, a large, significant number

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<v Speaker 4>of them are destroyed just by these very cheap commercial

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<v Speaker 4>drones in this spectacular way, there's obviously a huge psychological

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<v Speaker 4>blow to Russia's air force.

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<v Speaker 1>Okay, so Patrick, I want to look just a little closer,

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<v Speaker 1>because you said they're very inexpensive drones and the way

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<v Speaker 1>that they carried it out was absolutely just amazing that

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<v Speaker 1>they were able to do this. But you're saying that

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<v Speaker 1>they were small commercial drones that were used. So are

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<v Speaker 1>we talking about a drone that's like two feet across

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<v Speaker 1>or is it a larger drone? How big were these drones?

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<v Speaker 4>Yeah? I think actually slightly smaller. Even you know, these

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<v Speaker 4>are basically the sort of these are basically these quad

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<v Speaker 4>copter drones, you know, the four propellers that you would

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<v Speaker 4>see people using just for fun or for filming things

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<v Speaker 4>in the United States, and they of course modified them.

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<v Speaker 4>We believe they did put sort of improved guidance systems

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<v Speaker 4>on them. Possibly there was a use of AI involving them,

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<v Speaker 4>and obviously they put explosives on them. But these ultimately

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<v Speaker 4>are very cheap drones. You know, they're around at most,

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<v Speaker 4>you know, sort of thousand dollars, maybe fifteen hundred dollars,

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<v Speaker 4>and these aircraft are worth hundreds of millions of dollars.

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<v Speaker 4>And you know, as you were saying, I mean, the

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<v Speaker 4>way that they did it was completely extraordinary, and that

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<v Speaker 4>they smuggled the drones in and then they hit them

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<v Speaker 4>inside what were basically mobile homes, you know, wooden sheds

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<v Speaker 4>that were put on the back of trucks, and then

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<v Speaker 4>we believe they were driven by Russian civilian truck drivers

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<v Speaker 4>who probably didn't know what they were carrying. And then

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<v Speaker 4>basically when they got close to these bases, they then

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<v Speaker 4>opened up the roofs of these containers and.

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<v Speaker 3>Then the drones just started flying out. I mean, the

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<v Speaker 3>videos are extraordinary, you know, you see these.

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<v Speaker 4>Truck drivers just amazed as they're watching these things take off.

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<v Speaker 4>And then we've seen the sort at least one example

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<v Speaker 4>where there were truck drivers desperately trying to bring down

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<v Speaker 4>the drones by standing on top of the containers trying

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<v Speaker 4>to hit them with clubs, but obviously just an extraordinary

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<v Speaker 4>intelligence coup as well for Ukraine.

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<v Speaker 1>Yeah, and Patrick, I know you got to run, so

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<v Speaker 1>thank you so much for the information.

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<v Speaker 2>It's just amazing what they they did.

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<v Speaker 1>And I guess they've been planning it for about a

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<v Speaker 1>year and it was incredibly successful. We'll see if it

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<v Speaker 1>makes any kind of difference. But Patrick Reeville, ABC, thank

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<v Speaker 1>you so much.

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<v Speaker 5>That.

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<v Speaker 2>Wow.

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<v Speaker 1>So can you imagine that because it sounds like you've

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<v Speaker 1>got a mobile home on the back of a semi

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<v Speaker 1>truck that you see driving down the road sometimes or

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<v Speaker 1>in the freeway. I see it more in Oregon than

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<v Speaker 1>I do in California. And then all of a sudden,

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<v Speaker 1>the top opens up and all these drones come flying out.

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<v Speaker 2>Craziness. Monday morning. This is your wake up call.

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<v Speaker 1>I'm Amy King. Thanks so much for getting your day

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<v Speaker 1>started with us. Let's say good morning now to ABC's

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<v Speaker 1>Karen Travers. So, Karen, another day, another change in tariffs.

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<v Speaker 2>What is the latest?

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<v Speaker 6>Yeah, so we have a couple things. The President on

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<v Speaker 6>Friday announced that he was going to increase tariffs on

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<v Speaker 6>steel and aluminum imports from twenty five percent to fifty percent.

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<v Speaker 6>He did this when he was out in western Pennsylvania

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<v Speaker 6>and the pitt Berg area talking about how he is

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<v Speaker 6>going to boost the domestic steel industry. He said, this

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<v Speaker 6>means nobody is going to be able to steal your industry.

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<v Speaker 6>Think very much pun intended there. Of course, there is

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<v Speaker 6>big pushback on this. The European Commission says that they

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<v Speaker 6>strongly regret this increase because it's going to undermine efforts

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<v Speaker 6>right now taking place to negotiate a trade deal, and

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<v Speaker 6>they said they're going to have counter measures retaliatory tariffs

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<v Speaker 6>put in place. Canadian steel workers are pushing back, saying

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<v Speaker 6>that this should spark an immediate and forceable response from

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<v Speaker 6>the Canadian government. We haven't heard yet if they are

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<v Speaker 6>going to do that. But it also comes as the

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<v Speaker 6>President is accusing China of renegging on the commitment made

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<v Speaker 6>in Geneva a couple of weeks ago that led him

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<v Speaker 6>to reduce tariffs and Chinese goods from one forty five

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<v Speaker 6>to thirty percent. China insists that they have not renegged

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<v Speaker 6>on that agreement and that the president is making baseless accusations.

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<v Speaker 6>But apparently, according to his top economic advisors, he is

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<v Speaker 6>going to speak with China's president this week, So a

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<v Speaker 6>lot on the agenda for them to get to in

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<v Speaker 6>that phone call.

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<v Speaker 2>Wow. So, like I said, another day, another change.

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<v Speaker 1>It's just like how do you keep up with the

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<v Speaker 1>bouncing ball as you've called it.

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<v Speaker 6>Lots of documents open.

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<v Speaker 2>Yes, So Karen, here's the question.

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<v Speaker 1>He's saying, Okay, we're raising these and this one is

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<v Speaker 1>a pretty quick turnaround. It's not like it's happening in

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<v Speaker 1>ninety days. He's saying it's happening in two more days

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<v Speaker 1>this week.

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<v Speaker 6>Now more days.

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<v Speaker 1>Is that because or do we have any inkling or

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<v Speaker 1>indication that it's because the trade negotiations are not moving

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<v Speaker 1>along as he wants them to.

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<v Speaker 2>So he's basically pushing the envelope.

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<v Speaker 5>Yeah.

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<v Speaker 6>I think it could be a part of that in

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<v Speaker 6>you know, they've acknowledged that they have not reached trade agreements.

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<v Speaker 6>Of course with countries, we would have known about it

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<v Speaker 6>by now. They keep saying that they're close, but they're

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<v Speaker 6>also acknowledging that, you know, things are not great in

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<v Speaker 6>the conversations with China, which is why they want to

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<v Speaker 6>get him on the phone sheet this week. I think

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<v Speaker 6>another part of this is when you look at what

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<v Speaker 6>happened last week with the three judge panel that said

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<v Speaker 6>the President exceeded his authority on tariffs and put them

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<v Speaker 6>on hold. Then the appeals court said, well, we'll let

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<v Speaker 6>them stay in place while it plays out in court.

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<v Speaker 6>The steel and aluminum tariffs aren't a part of that.

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<v Speaker 6>They were allowed to continue. So perhaps it's like the

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<v Speaker 6>President looking at this and say, well, that's the one

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<v Speaker 6>thing I can still work with and I can increase,

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<v Speaker 6>I can change, I can use this as a leverage

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<v Speaker 6>negotiating tool. And so they did it on Friday.

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<v Speaker 1>Okay, and this is specifically on steel and aluminum.

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<v Speaker 2>Do we make enough of it here?

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<v Speaker 5>That is a question.

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<v Speaker 6>I have gotten masked a couple times this morning, and

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<v Speaker 6>I don't know the answer to that. Like ten companies

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<v Speaker 6>suddenly just say great, we're going to shift then to

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<v Speaker 6>domestic steelmakers. And will the supply be there if they

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<v Speaker 6>do that, I don't know the answer to that. We're

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<v Speaker 6>the world's largest steel importer, so clearly we are getting steel,

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<v Speaker 6>a massive amount of steel from other countries around the world. Now,

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<v Speaker 6>the criticism is because it's cheaper, and the idea than

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<v Speaker 6>is to make it more expensive so that these companies

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<v Speaker 6>here have to buy American made steel, gotcha.

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<v Speaker 1>I was just I was curious about it because when

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<v Speaker 1>we're talking about the car making and that kind of stuff,

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<v Speaker 1>they would physically have to build plants. But we do

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<v Speaker 1>have steel plants in the US.

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<v Speaker 6>We do, so it'd be interesting to see Kyle production exactly.

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<v Speaker 6>And that's not something that can be done overnight, you know,

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<v Speaker 6>it's really difficult.

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<v Speaker 1>Well, I'm sure we're going to be talking again this

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<v Speaker 1>week because we have two days until those tarriffs are

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<v Speaker 1>supposed to kick in, and who knows what's going to

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<v Speaker 1>happen between now and then.

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<v Speaker 6>Stay tuned a lot of conversations, I'm sure.

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<v Speaker 1>All right, Thank you so much, Karen Travers with ABC.

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<v Speaker 1>Have a great Monday.

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<v Speaker 5>Thanks.

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<v Speaker 1>And did you see those little angels? Okay, the Eagles

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<v Speaker 1>are up this morning. Of course we're waiting for them

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<v Speaker 1>to fledge. We're on Fledge Watch now instead of Pip Watch,

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<v Speaker 1>and they could fly at any time. And as we

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<v Speaker 1>were telling you, Shannon and I and obviously Gary and

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<v Speaker 1>Shannon were on the air and one of the eagles

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<v Speaker 1>took off and Shannon and I just lost it.

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<v Speaker 2>I started crying. It was wonderful.

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<v Speaker 1>It was beautiful, and then he got blown back into

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<v Speaker 1>the nest and she hasn't tried to leave since, so

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<v Speaker 1>it'll be interesting to see that could happen anytime. Maybe

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<v Speaker 1>she was just gaining her confidence. But we'll be watching.

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<v Speaker 1>They're up and they're flapping around this morning, so.

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<v Speaker 2>We're saying both girls. Yes, yep.

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<v Speaker 1>The friends of Big Bearrett Valley now considers or has

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<v Speaker 1>estimated or guestimated that they are both girls. So Sonny

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<v Speaker 1>and Gizmo are sisters. When we come back, now is

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<v Speaker 1>the time to change all of your passwords. I know

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<v Speaker 1>it's going to be a pain in the butt, but

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<v Speaker 1>ABC's Jim Ryan's gonna tell us why and what could

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<v Speaker 1>happen if you don't. We'll be talking about passwords and

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<v Speaker 1>changing them in just moments.

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<v Speaker 2>Let's say good morning now to ABC's Jim Ryan. Morning,

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<v Speaker 2>Jim Baby, how are you.

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<v Speaker 1>I'm good, but apparently I got to run home, go

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<v Speaker 1>to my computer and change all of my passwords.

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<v Speaker 7>Now, you know what, you should probably just do it

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<v Speaker 7>during the next spot break. You need to get in

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<v Speaker 7>there and shout because yeah, massive data breach one hundred

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<v Speaker 7>and eighty four million online accounts have been compromised, They've

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<v Speaker 7>been discovered. There's this guy, this internet researcher, Jeremiah Fowler,

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<v Speaker 7>who spends all day and all night looking for things

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<v Speaker 7>like this, and he found a big one, this massive

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<v Speaker 7>that all this data, these hundred and eighty four million files,

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<v Speaker 7>these online accounts were being housed in a hosting service. Right, so, Apple, Facebook, Googled,

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<v Speaker 7>the others contract with these hosting companies to hold on

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<v Speaker 7>to that data and presumably to keep it all safe.

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<v Speaker 7>But even that huge file, that that cache of data

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<v Speaker 7>was not password protected. What so yeah, yeah, there was

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<v Speaker 7>no two step authentication to get into that. There wasn't password.

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<v Speaker 7>It was essentially open file. And whoever it was, I

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<v Speaker 7>don't know if it was even hacking since it was

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<v Speaker 7>apparently so easy to get hold of and now it's

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<v Speaker 7>out there. The hosting company is trying to shut it down.

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<v Speaker 7>It's trying to do what it can. But for the

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<v Speaker 7>rest of us, it's just a matter of trying to

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<v Speaker 7>protect ourselves individually by changing your passwords.

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<v Speaker 2>Okay, so is it too late?

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<v Speaker 1>I mean, if they have the information or once the

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<v Speaker 1>passwords change, then your accounts are safe again.

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<v Speaker 7>Well yeah they should be, yes, So let's say your

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<v Speaker 7>bank account information is in that huge amount of data,

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<v Speaker 7>your password, your user name before they can use it

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<v Speaker 7>for some the various cause, or you need to go

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<v Speaker 7>in and change your passwords so that it's protected again,

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<v Speaker 7>use a password generator, use some method that you don't

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<v Speaker 7>have to sit there and remember all your passwords at

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<v Speaker 7>the same time. Use two step authentication, which I think

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<v Speaker 7>is pretty handy. Facial recognition is or really good on

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<v Speaker 7>my bank is my account is tied to that within

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<v Speaker 7>the phone app, right, So instead of remembering passwords for

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<v Speaker 7>that or for some others, just look at your phone

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<v Speaker 7>and the facial recognition will will open up the account

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<v Speaker 7>for you. Nobody else can get into it, okay.

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<v Speaker 1>So if I have the facial recognition or the two

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<v Speaker 1>step authentication, am I okay?

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<v Speaker 2>Or should I change it anyway?

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<v Speaker 7>You should be good. You should be good. But again,

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<v Speaker 7>you know, better safe than sorrow. Even with the facial recognition,

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<v Speaker 7>you can tie that to a new password, right, so

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<v Speaker 7>you go into the once you look at the phone

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<v Speaker 7>and it opens up the account, go in and save

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<v Speaker 7>that change that password anyway, because it's still based on

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<v Speaker 7>a password even though facial recognition is there. So change

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<v Speaker 7>the password, maintain the facial recognition, and you should be

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<v Speaker 7>good to go there. But it's all sorts of data Apple, Facebook, Google,

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<v Speaker 7>that includes Google Gmail. And here's the other thing that

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<v Speaker 7>he recommends, Jeremiah and Jeremiah Fallard, quit using your email

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<v Speaker 7>as a cloud storage device. Right, So deep within your email,

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<v Speaker 7>and I'm guilty too. Deep within that email is potentially

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<v Speaker 7>your tax return because you send it to your account,

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<v Speaker 7>or you send it to somebody or got it back

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<v Speaker 7>from them, so your tax return is in there. Potentially

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<v Speaker 7>medical records, could be your work contract, a list of

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<v Speaker 7>passwords that you thought would be safe within your email,

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<v Speaker 7>well it's not. You know, all of that could be

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<v Speaker 7>part of this huge data breach.

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<v Speaker 1>Amy all right, I'm going home to change my passwords.

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<v Speaker 1>But better safe than sorry, right, Jim Ryan.

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<v Speaker 7>Exactly protect yourself, you know, it's all we can do.

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<v Speaker 7>And make sure your phone is updated. You know, if

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<v Speaker 7>it says update, go ahead and do it. Don't bother

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<v Speaker 7>in waiting till tonight. Go ahead and do it now.

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<v Speaker 7>It'll be at a commission for just a few minutes.

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<v Speaker 1>Okay, ABC's Jim Ryan, thanks for the tips, appreciate it all.

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<v Speaker 2>Right, Time to get in your.

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<v Speaker 1>Business now with Bloomberg's Courtney Donaho Courtney.

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<v Speaker 2>The big question of the day, how are you good?

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<v Speaker 1>Good?

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<v Speaker 2>Okay?

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<v Speaker 1>So my question of the day is how do you

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<v Speaker 1>say price hike without actually saying price hike?

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<v Speaker 5>Yes, that's what America's retailers are attempting to do, and

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<v Speaker 5>they're coming up with a big old worm salad. So

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<v Speaker 5>this report is sponsored by Total Line and more so

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<v Speaker 5>that's buy in Target. They say they're adjusting prices, not

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<v Speaker 5>raising prices. The footwear company behind Hooka Sneakers is quote

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<v Speaker 5>flexing the pricing power of its brands, that's how they

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<v Speaker 5>say it. And home Gooods owner TJX didn't even mention

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<v Speaker 5>the word price. So listen to this verbal gymnastics that

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<v Speaker 5>they're going through. They said in the call last week,

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<v Speaker 5>if retails do move out there, we will adjust our

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<v Speaker 5>retails to preserve that gap. According to the Wall Street Journal,

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<v Speaker 5>retailers are audition it out in the hopes of not

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<v Speaker 5>scaring off customers or raising the iron President Trump. I mean,

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<v Speaker 5>look at what happened with Walmart when the President said

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<v Speaker 5>eat the tariffs. It's you know, they're coming up with

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<v Speaker 5>different ways to just really not say what's what's ahead

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<v Speaker 5>of them.

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<v Speaker 1>You know what this reminds me of Courtney is I

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<v Speaker 1>was in my pavilions the other day and on the

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<v Speaker 1>end cap they had cereals and I was like, oh, cious,

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<v Speaker 1>which I don't almost ever buy, and it says big box,

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<v Speaker 1>big box, and like it had these big signs on it,

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<v Speaker 1>which again, like you said, it's word salad because it's fake.

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<v Speaker 1>They're saying it's a big box, but I'm like, that's

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<v Speaker 1>smaller than the boxes used to be.

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<v Speaker 2>But they're just saying it's.

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<v Speaker 1>Big, but it really isn't. And that you know, yes,

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<v Speaker 1>that whole shrinkflation thing that I think is still affecting everybody.

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<v Speaker 5>And what they're just hoping in all of this is

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<v Speaker 5>we're going to forget some of these things. But even

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<v Speaker 5>though a lot of companies they do have to come

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<v Speaker 5>up with some sort of way to be able to

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<v Speaker 5>offset the tariffs. But then also not all the tariffs

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<v Speaker 5>are coming through right now, so they also have to

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<v Speaker 5>be able to not say, hey, we're putting through a

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<v Speaker 5>price hike, say the tariff doesn't go through that really

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<v Speaker 5>affects certain products that they have. Then want to be

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<v Speaker 5>able to have the verbal flexibility to be able to

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<v Speaker 5>kind of go back on what they said. But some

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<v Speaker 5>executives have talked to the Wall Street Journal and they said,

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<v Speaker 5>raising prices is the last resort of what they're going

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<v Speaker 5>to do. They're going to try to find other ways.

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<v Speaker 5>Costco last week said, look, we're going to try to

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<v Speaker 5>move things forward. We're going to try to change certain

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<v Speaker 5>seasonal things. We're going to go to different suppliers. We're

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<v Speaker 5>going to have a different product makeup, just so they

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<v Speaker 5>don't have to come in and raise the prices.

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<v Speaker 1>All right, we shall see. So this is something that

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<v Speaker 1>isn't on the way up. It appears to be on

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<v Speaker 1>the way down. And that's oil prices. And how's that

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<v Speaker 1>going to help if I'm going to travel this summer?

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<v Speaker 5>Yeah, so it could mean cheaper airline tickets are on

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<v Speaker 5>the way. According to the International Air Transport Association, there's

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<v Speaker 5>almost a direct correlation between the price of oil and

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<v Speaker 5>the cost of an airline ticket, and the price of

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<v Speaker 5>oil has come down significantly, even though it's higher today.

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<v Speaker 5>Right now it's at sixty three dollars a barrel. But

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<v Speaker 5>lower ticket prices usually fuel a lot of demand. People say, okay,

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<v Speaker 5>prices are a lot lower. I'm going to take my

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<v Speaker 5>family on a vacation. But the trade group says it

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<v Speaker 5>also clearly drives down the overall revenue for the industry.

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<v Speaker 5>So this isn't good for the airlines, because the airlines

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<v Speaker 5>are expected to now earn thirty six billion dollars this year.

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<v Speaker 5>Earlier in December they predicted a much higher number than that.

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<v Speaker 5>But last week, as we heard, some of the airlines

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<v Speaker 5>are coming out and they're already saying we're going to

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<v Speaker 5>have cheaper flights. United being one of them saying, hey,

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<v Speaker 5>we're going to have cheaper flights out of Newark and

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<v Speaker 5>New Jersey. So because a lot of people have been

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<v Speaker 5>avoiding that airport.

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<v Speaker 2>Afleet well because people are almost crashing.

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<v Speaker 5>And stuff like that exactly. But Delta Airlines too, they

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<v Speaker 5>actually came out and they said they're more confident about demand.

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<v Speaker 5>They said CEO ed Bashin, he talked to Bloomberg and

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<v Speaker 5>he expects bookings to tick up after a lot of

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<v Speaker 5>people showed some restraints. Hearing all of these.

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<v Speaker 1>Headlines, all right, well, well we'll be watching, so watch

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<v Speaker 1>those ticket prices. And before we let you go, what's

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<v Speaker 1>going on in the stocks this morning.

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<v Speaker 5>Yeah, so we're looking at a lower open this morning

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<v Speaker 5>because we're seeing the flare up in trade tensions between

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<v Speaker 5>the US and China. There's some mutual accusations between the

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<v Speaker 5>two of breaching a trade deal. DW futures are down

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<v Speaker 5>seventy points. But think about where we are right now.

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<v Speaker 5>It was the best May for the S and P

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<v Speaker 5>five hundred since nineteen ninety. We saw the S and

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<v Speaker 5>P five hundred, after a volatile month, gain more than

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<v Speaker 5>six percent. So sometimes when we hear these tariff headlines

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<v Speaker 5>pulling back, we do see stocks pop hire.

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<v Speaker 2>Okay, we'll be watching them.

425
00:21:34.000 --> 00:21:37.599
<v Speaker 1>That's Bloomberg's Courtney don Hoe Donahoe getting in your business

426
00:21:37.640 --> 00:21:38.119
<v Speaker 1>every day.

427
00:21:38.200 --> 00:21:39.480
<v Speaker 2>Let's do it again tomorrow, shall we?

428
00:21:40.519 --> 00:21:41.319
<v Speaker 5>Definitely we will.

429
00:21:41.319 --> 00:21:41.880
<v Speaker 8>I'll talk to you.

430
00:21:41.880 --> 00:21:42.799
<v Speaker 2>Later, thanks, Courtney.

431
00:21:42.920 --> 00:21:47.640
<v Speaker 1>Okay, let's say good morning now to ABC's Stephen Portnoy. So, Stephen,

432
00:21:47.720 --> 00:21:51.599
<v Speaker 1>the President's so called big Beautiful bills still awaiting action

433
00:21:51.720 --> 00:21:54.480
<v Speaker 1>in the Senate, and with such a small majority of

434
00:21:54.480 --> 00:21:57.319
<v Speaker 1>the Senate can only have like three senators vote against it.

435
00:21:57.920 --> 00:21:59.359
<v Speaker 2>So where does it stand now?

436
00:21:59.599 --> 00:22:02.200
<v Speaker 8>Well, right now, if the bill were put on the

437
00:22:02.200 --> 00:22:04.400
<v Speaker 8>floor of the House today, it would not pass, and

438
00:22:04.440 --> 00:22:06.119
<v Speaker 8>so tweaks are going to have to be made to

439
00:22:06.160 --> 00:22:09.200
<v Speaker 8>get this thing through the Senate. To what extent those

440
00:22:09.279 --> 00:22:11.079
<v Speaker 8>changes will be made, and to what extent they might

441
00:22:11.720 --> 00:22:14.880
<v Speaker 8>threaten the bill's prospects in the House. That's sort of

442
00:22:14.960 --> 00:22:17.880
<v Speaker 8>hanging over all this. The Senate comes back today after

443
00:22:17.920 --> 00:22:21.039
<v Speaker 8>a week off of the Memoriality recess, and you have

444
00:22:21.720 --> 00:22:25.599
<v Speaker 8>varying camps within the Senate Republican caucus. You have fiscal

445
00:22:26.079 --> 00:22:28.599
<v Speaker 8>hawks who are concerned about the impact that this measure

446
00:22:28.599 --> 00:22:30.559
<v Speaker 8>would have on the national debt.

447
00:22:31.319 --> 00:22:31.480
<v Speaker 5>You know.

448
00:22:31.519 --> 00:22:34.519
<v Speaker 8>The White House pushes back strongly against the idea that

449
00:22:34.559 --> 00:22:37.359
<v Speaker 8>it would raise the national debt by three point eight

450
00:22:37.359 --> 00:22:40.200
<v Speaker 8>trillion dollars according to the estimate of the Congressional Budget Office.

451
00:22:40.519 --> 00:22:45.400
<v Speaker 8>The White House argues that that takes into account prospect

452
00:22:45.400 --> 00:22:47.359
<v Speaker 8>that they don't see as realistic, which is the snap

453
00:22:47.440 --> 00:22:50.920
<v Speaker 8>back of tax rates to where they were before the

454
00:22:50.960 --> 00:22:54.400
<v Speaker 8>Trump era tax cuts of twenty seventeen. And so the

455
00:22:54.400 --> 00:22:56.759
<v Speaker 8>White House says that that shouldn't be factored in, that

456
00:22:57.240 --> 00:23:01.119
<v Speaker 8>today's tax rates are where they would if this bill passed,

457
00:23:01.119 --> 00:23:04.359
<v Speaker 8>and so therefore it shouldn't be considered a cost to

458
00:23:05.240 --> 00:23:08.240
<v Speaker 8>the treasury or but that's the way things are viewed

459
00:23:08.279 --> 00:23:10.039
<v Speaker 8>by the Congressional Budget Office. They look at the way

460
00:23:10.039 --> 00:23:12.240
<v Speaker 8>the law currently is before the pass of this bill,

461
00:23:12.279 --> 00:23:14.599
<v Speaker 8>because there's a chance it won't pass, and then the

462
00:23:14.640 --> 00:23:16.759
<v Speaker 8>tax rates would snap back, and that would be revenue

463
00:23:16.799 --> 00:23:18.759
<v Speaker 8>that's coming in. So the fact that that wouldn't happen

464
00:23:18.839 --> 00:23:21.920
<v Speaker 8>has to be in the mind of the CBO factored in. Plus,

465
00:23:22.160 --> 00:23:25.480
<v Speaker 8>the White House also argues that it will spark economic growth,

466
00:23:25.799 --> 00:23:31.599
<v Speaker 8>and that CBO consistently underestimates the growth at least sparked

467
00:23:31.599 --> 00:23:36.720
<v Speaker 8>by Trump policies, And so the White House and Speaker

468
00:23:36.799 --> 00:23:39.119
<v Speaker 8>Johnson are saying that people should pay no mind to

469
00:23:39.200 --> 00:23:41.599
<v Speaker 8>the CBO score. Republicans and the Senate, on the other hand,

470
00:23:41.640 --> 00:23:44.680
<v Speaker 8>they're like, a not so fast. They do trust the CBO,

471
00:23:44.759 --> 00:23:46.599
<v Speaker 8>or at least they're more inclined to trust it now.

472
00:23:46.640 --> 00:23:48.599
<v Speaker 8>So that's the concern of the fiscal haughts. Then you

473
00:23:48.640 --> 00:23:51.279
<v Speaker 8>have the moderates who are concerned about the Medicaid changes.

474
00:23:51.559 --> 00:23:56.279
<v Speaker 8>There's the enhanced requirement for at least searching for work

475
00:23:56.400 --> 00:24:00.400
<v Speaker 8>or performing some sort of volunteer task. You have to

476
00:24:00.440 --> 00:24:04.759
<v Speaker 8>be looking for work, and some Republican senators say that

477
00:24:04.839 --> 00:24:07.279
<v Speaker 8>they're not certain that their own states will be ready

478
00:24:07.319 --> 00:24:10.640
<v Speaker 8>to ramp up some sort of a verification requirement in time.

479
00:24:10.839 --> 00:24:14.759
<v Speaker 8>So you have that. Then you have the concerns about

480
00:24:15.440 --> 00:24:18.039
<v Speaker 8>some of the tax implications and the Medicaid changes, a

481
00:24:18.079 --> 00:24:22.000
<v Speaker 8>provision that aims to freeze state taxes on Medicaid providers

482
00:24:22.240 --> 00:24:24.960
<v Speaker 8>as a means of paying for the healthcare coverage. There's

483
00:24:25.000 --> 00:24:28.359
<v Speaker 8>also a concern about new copays for Medicaid recipients, what

484
00:24:28.599 --> 00:24:32.039
<v Speaker 8>Senator Josh Hawley is calling a sick tax. This idea

485
00:24:32.079 --> 00:24:33.759
<v Speaker 8>that people who are on Medicaid will have to actually

486
00:24:34.400 --> 00:24:38.400
<v Speaker 8>share some of the costs by paying copays. Hawley doesn't

487
00:24:38.400 --> 00:24:44.480
<v Speaker 8>want that. So you have a difficult high mountain for

488
00:24:44.559 --> 00:24:47.559
<v Speaker 8>the Republican senators to climb before this thing gets back

489
00:24:47.559 --> 00:24:49.759
<v Speaker 8>to the House to be sent to the President's desk.

490
00:24:49.799 --> 00:24:50.680
<v Speaker 8>We'll see what happens.

491
00:24:51.039 --> 00:24:53.160
<v Speaker 1>Okay, So Steve and I have a question for you,

492
00:24:53.200 --> 00:24:56.240
<v Speaker 1>because you perked up my ears when you were talking

493
00:24:56.279 --> 00:25:00.920
<v Speaker 1>about the Medicaid work requirement or volunteer requirement. Do you

494
00:25:01.079 --> 00:25:04.440
<v Speaker 1>know how many people are on Medicaid?

495
00:25:05.000 --> 00:25:06.720
<v Speaker 2>Do you have an idea you know? I actually don't.

496
00:25:07.119 --> 00:25:08.640
<v Speaker 8>I'm sure I could google it and get back to

497
00:25:08.680 --> 00:25:08.880
<v Speaker 8>you on that.

498
00:25:08.960 --> 00:25:11.720
<v Speaker 1>Okay, I was just wondering because if I mean, like,

499
00:25:11.799 --> 00:25:13.640
<v Speaker 1>on the surface, it sounds like a good thing, Like

500
00:25:13.640 --> 00:25:16.000
<v Speaker 1>if you're getting all this free money from the government,

501
00:25:16.039 --> 00:25:17.559
<v Speaker 1>why not have to work for it a little bit?

502
00:25:17.599 --> 00:25:19.680
<v Speaker 1>But if you're looking at millions of people, I'm just

503
00:25:19.680 --> 00:25:23.880
<v Speaker 1>talking about practicality right now. If you're looking at twenty

504
00:25:23.880 --> 00:25:25.799
<v Speaker 1>million people, and I think it's more. But if you

505
00:25:25.839 --> 00:25:28.839
<v Speaker 1>look at twenty million people, how with a low unemployment rate,

506
00:25:28.839 --> 00:25:30.119
<v Speaker 1>how are you going to get all those people to

507
00:25:30.160 --> 00:25:32.880
<v Speaker 1>actually work or volunteer. That's a lot of people to

508
00:25:32.960 --> 00:25:34.000
<v Speaker 1>have that requirement there.

509
00:25:34.000 --> 00:25:35.599
<v Speaker 8>And by the way, I just google it real fast.

510
00:25:35.640 --> 00:25:38.720
<v Speaker 8>According to the Center for Medicaid Medicare Services, more than

511
00:25:38.799 --> 00:25:41.599
<v Speaker 8>seventy one million Americans enrolled in Medicaid. Many of them

512
00:25:41.599 --> 00:25:42.079
<v Speaker 8>are children.

513
00:25:42.559 --> 00:25:45.079
<v Speaker 1>You know what, all the volunteer programs in America are

514
00:25:45.079 --> 00:25:46.400
<v Speaker 1>going to be very well staffed.

515
00:25:46.400 --> 00:25:47.920
<v Speaker 2>If that goes through, well, that's it.

516
00:25:47.960 --> 00:25:52.440
<v Speaker 8>Look, this provision would add an eighty hour per month

517
00:25:52.680 --> 00:25:56.160
<v Speaker 8>work requirement, and the idea would be that maybe you

518
00:25:56.440 --> 00:26:00.119
<v Speaker 8>are engaged in childcare for the neighborhood, or you, as

519
00:26:00.200 --> 00:26:03.440
<v Speaker 8>you say, amy, volunteer. The point is, you know, half

520
00:26:03.759 --> 00:26:06.400
<v Speaker 8>of the work days of the month would have to

521
00:26:06.400 --> 00:26:09.119
<v Speaker 8>be spent by you in an eight hour per day

522
00:26:09.559 --> 00:26:12.440
<v Speaker 8>work situation, or maybe four hours per day every day.

523
00:26:13.119 --> 00:26:16.720
<v Speaker 8>And you know that's some moderate Republicans are pushing back

524
00:26:16.720 --> 00:26:18.960
<v Speaker 8>against that. They either think it's too arduous or too

525
00:26:19.000 --> 00:26:22.519
<v Speaker 8>difficult for the states to verify. And you know, I'll

526
00:26:22.559 --> 00:26:25.480
<v Speaker 8>just say that when it comes to how this is

527
00:26:25.480 --> 00:26:28.880
<v Speaker 8>going to be handled, you have to figure out how

528
00:26:28.880 --> 00:26:31.039
<v Speaker 8>to get these votes. There is, as you note, fifty

529
00:26:31.039 --> 00:26:34.880
<v Speaker 8>three Republican senators and they can only afford to lose

530
00:26:34.920 --> 00:26:37.720
<v Speaker 8>three and still have Vice President Vance breaking the tie.

531
00:26:38.359 --> 00:26:40.480
<v Speaker 8>At the moment, according to Senator Ron Johnson, there at

532
00:26:40.519 --> 00:26:43.720
<v Speaker 8>least four Republican knows, so that would be enough to

533
00:26:43.759 --> 00:26:47.680
<v Speaker 8>tank the bill as it's currently constituted. So this is

534
00:26:47.720 --> 00:26:52.160
<v Speaker 8>the process. The White House is maintaining an optimistic view

535
00:26:52.160 --> 00:26:54.799
<v Speaker 8>of this. The deadline Republican senators are set for themselves,

536
00:26:55.160 --> 00:26:58.440
<v Speaker 8>I should say the leadership at least is July fourth,

537
00:26:58.720 --> 00:27:01.440
<v Speaker 8>So there's about a month for Republican senators to dig

538
00:27:01.480 --> 00:27:02.880
<v Speaker 8>into this and see what they can come up with.

539
00:27:02.920 --> 00:27:06.319
<v Speaker 8>But there's also the risk. Remember, you know it was

540
00:27:06.680 --> 00:27:09.440
<v Speaker 8>in the first Trump term there was so much impetus

541
00:27:09.599 --> 00:27:13.359
<v Speaker 8>in the Republican Party to repeal the Affordable Care Act.

542
00:27:13.880 --> 00:27:15.000
<v Speaker 8>They couldn't get it done.

543
00:27:16.359 --> 00:27:18.680
<v Speaker 1>Okay, well we'll be watching it. We got a month ago.

544
00:27:21.440 --> 00:27:23.920
<v Speaker 1>Steven Bortenoy, thanks so much. We'll talk to you again soon.

545
00:27:24.079 --> 00:27:24.880
<v Speaker 2>You bet all right.

546
00:27:25.119 --> 00:27:28.000
<v Speaker 1>Live from the KFI twenty four hour Newsroom, I'm Amy King.

547
00:27:28.200 --> 00:27:29.920
<v Speaker 1>This has been your wake up call, and if you

548
00:27:30.000 --> 00:27:32.319
<v Speaker 1>missed any wake up call, you can listen anytime on

549
00:27:32.400 --> 00:27:35.640
<v Speaker 1>the iHeartRadio app. You've been listening to wake Up Call

550
00:27:35.720 --> 00:27:38.440
<v Speaker 1>with me, Amy King. You can always hear wake Up

551
00:27:38.440 --> 00:27:41.319
<v Speaker 1>Call five to six am Monday through Friday on KFI

552
00:27:41.519 --> 00:27:45.599
<v Speaker 1>Am six forty and anytime on demand on the iHeartRadio

553
00:27:45.680 --> 00:27:46.000
<v Speaker 1>app
