The President's Daily Brief - September 29th, 2023: Menendez's FBI Probe, Pentagon's Arms Dilemma, and Auto Industry Showdown

Episode Date: September 29, 2023

In this episode of The President's Daily Brief: Senator Bob Menendez faces indictment and calls to resign as he's accused of leveraging his Senate Foreign Relations Committee role for personal gain. Learn about an intriguing FBI counterintelligence probe into Menendez and his wife. Dive into a financial shortfall crisis at the Pentagon, where they're struggling to replace $5 billion worth of arms sent to Ukraine. With only $1.6 billion left for new contracts, the looming threat of a government shutdown adds complexity to the situation. Get the latest scoop on the auto industry as UAW's Shawn Fain sets a new deadline, raising the specter of further strikes just two weeks after the initial walkout. In our "Back of the Brief" segment, discover how Senate attire gets a formal makeover on Capitol Hill. Please remember to subscribe if you enjoyed this episode of The President's Daily Brief. Email: [e-mail] Learn more about your ad choices. Visit megaphone.fm/adchoices

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Made our way through the work week, and now, here we are, Friday, September 29th. Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. Now, let's get briefed. Today on the PDB, we'll check in on stories that we touched on this week to track their developments in what we call, cleverly, might I add, follow-up Friday. People in the know are already predicting that follow-up Friday will become more popular than Taco Tuesday. Personally, I doubt it. Can't beat a taco. First up, Senator Bob Menendez continues to reject calls to

resign just days after being indicted on charges of leveraging his powerful political position on the Senate Forum Relations Committee for the benefit of several businessmen and don't forget, the government of Egypt. Today, we're learning of an interesting twist in the story as the FBI opens a counterintelligence investigation into the senator and his wife. A little later in the program, we'll dive into a concerning financial shortfall at the Pentagon, which is struggling to replace $5 billion worth of arms sent to Ukraine, with only $1.6 billion left in the wallet for new equipment contracts. And, of course, the looming threat of a government shutdown is further complicating procurement matters.

Plus, we've got the latest on the auto industry as UAW leader Sean Fane sets a new deadline for Detroit's Big Three, raising the specter of more strikes just two weeks after the initial walkout. Finally, in today's back of the brief segment, Senate attire undergoes a transformation on Capitol Hill as a unanimous decision formalizes a new dress code. Discover what prompted this change, and why even Senate Majority Leader Chuck Schumer is on board. But first, today's PDB spotlight. Democrat Senator Bob Menendez pleaded not guilty on Wednesday to three federal charges tied to an alleged bribery scheme. These charges revolve around Menendez allegedly leveraging his political influence to assist the Egyptian government and three

New Jersey businessmen. His wife, Nadine Menendez, also entered a not guilty plea for the three charges against her. Now, Menendez was released on $100,000 bond and had to surrender his passport, while his wife, Nadine, was released on a notably higher $250,000 bond. The disparity in bond amounts is intriguing, and we'll circle back to that shortly. The Justice Department's allegations assert that Senator Menendez and his wife were involved in a lengthy plot during which they purportedly accepted hundreds of thousands of dollars, gold bars, and even a Mercedes-Benz convertible, among other items. Pressure for Menendez to resign has been mounting since this indictment last week. Over 30 Senate Democrats, which constitutes a majority of the caucus, have called for his resignation.

However, Menendez has remained steadfast in his determination to stay in office, because, well, frankly, why would you give up that sort of profitable gig? Here is where the story takes another interesting twist. According to reports, the FBI is now investigating whether Egyptian intelligence services had a role in Menendez's alleged bribery scheme. Sources have revealed that this counterintelligence probe is exploring the possibility that Egypt's intelligence service attempted to gain access to the senator, possibly through his wife. Now, this might shed some light on the discrepancy in bond amounts. It suggests that Nadine Menendez may not only have been an active participant in these schemes,

she may even have been the driving force behind the alleged influence peddling activities of her husband. Menendez is a famously combative figure up on Capitol Hill. Those of you who keep track of D.C. corruption scandals will remember that last time, which was only a handful of years ago, Menendez was also charged with corruption and bribery. His response back then was in line with his current actions, meaning deny, lash out at the accusers, and demonstrate a level of indignation and righteousness that seems unique to politicians on Capitol Hill. All right, after the break, updates on two more stories we've been following closely. First, the countdown to a potential government shutdown is just two days away, with conservatives

pushing for spending cuts and House Speaker Kevin McCarthy's position, possibly on the line. We'll dive into the intricacies of how a shutdown has the Pentagon concerned about a multi-billion dollar shortfall. And later, we'll take you to the picket lines where United Auto Workers are now two weeks into their strike against the Big Three automakers. With more than 18,000 workers on strike and potential escalation looming, we'll explore the latest developments in this labor dispute. I'll be right back. Welcome back to the President's Daily Brief. We're just two days away from a looming government shutdown, slated to kick off at 1201 a.m. Eastern Time this Sunday, if no deal is struck. Now, don't forget

to set your alarms. You'll want to wake up, pour a beverage, and raise a glass to the dysfunction that is Capitol Hill. I'm not saying it'll be as exciting as New Year's Eve, but the upside is you don't have to wear a party hat and strangers aren't going to try to kiss you. House conservatives are driving for hefty spending cuts, a tough sell in the Democrat-controlled Senate, and they're even putting pressure on Speaker Kevin McCarthy's position. One of the hot topics among some conservatives is ending arms shipments to Ukraine in its struggle against Russia, or at least putting a break on the degree of spending. Now, as we reported earlier this week, a government shutdown won't immediately impact

these shipments to Ukraine. The Pentagon has given the program a pass from any shutdown effects. However, there's a bit of a caveat to that story that we're learning about today. The Defense Department reports that a shutdown could hamper the process of replenishing the weapon's stockpiles sent to Ukraine. You see, the president is using what's called drawdown authority to supply Ukraine with the critical and much-needed weaponry, which means that much of the equipment that we're sending is coming directly from DOD stockpiles. And here's the crunch. Despite having the congressional green light to send Ukraine an additional $5 billion in weapons and gear from existing supplies,

the Pentagon has only $1.6 billion left in the tank to secure contracts and replace that equipment. Now, for those of you who don't math well, and frankly I'm in that category, that's a $3.4 billion shortfall, which, I'm told, is a lot. So while Ukraine is assured of receiving its weapons, there's no guarantee we can foot the bill to replace them, potentially leaving the U.S. short on equipment down the road. The Pentagon Comptroller underscores the situation, telling Bloomberg that procurement is already slowing down due to the looming shutdown, with the DOD taking a prudent approach to avoid ending up, quote, dead pro, as they put it. All right, let's head to the picket lines

where members of the United Auto Workers are now two weeks into their strike against the Big Three automakers, and the UAW is poised to escalate its strike today if substantial progress isn't made on new contracts by noon. As of this morning, more than 18,000 workers at three plants and 38 parts distribution centers are on the picket line. On top of that, GM and Stalantist announced this week that they're laying off more than 2,000 additional workers. While both the UAW and the Big Three have been tight-lipped, reports suggest that some progress is being made.

The United Auto Workers have reportedly revised their initial pay-rise proposal. They're now aiming for at least a 30% raise, which is a bit lower than the initial 40% to 46% that they proposed to the automakers. However, it's still much higher than the 20% increase initially offered by a Ford. So, obviously, there's still some ground to cover. The big question is, which locations might join the strike next? If it reaches plants producing full-size pickup trucks, the most lucrative vehicles for these companies, things could get even more intense, and that move would signal that the UAW could be going

all in for a fight. Now, what does all this mean to the economy? Well, estimates put together by the Anderson Economic Group suggests that in the first week alone of what is now a two-week strike, economic losses totaled over $1.6 billion. That's just the first week, factor in the second week and the shutdown of parts distribution centers, and we could be at losses totaling $5 billion or more currently. As we've discussed previously on the PDB, a growing lengthy strike is going to impact a wide swath of the U.S. population.

It's like throwing a rock in a pond. The initial impact is on the auto workers and automakers, but you quickly get the ripples or concentric circles encompassing a variety of sectors, service providers, vendors, and small businesses that support the auto industry. The economic and political ramifications of an extended strike could be severe. All right, coming up in today's back of the brief segment. We'll provide an update on a story that we covered last week. Senate Majority Leader Chuck Schumer stirred controversy with his efforts to relax the dress

code on Capitol Hill. But now the U.S. Senate has unequivocally expressed its position by unanimously endorsing a new business attire rule for the Senate floor. I'll be right back. Welcome back. In today's back of the brief segment, we've got an update on a story we covered just last week. Senate Majority Leader Chuck Schumer caused quite a stir

when he told the Senate's sergeant-at-arms to lay off enforcing their unwritten dress code, seemingly for the benefit of Pennsylvania Senator John Federman. Federman, as you know, okay, maybe you don't know, is recognized for his keen sense of fashion an ability to layer t-shirts with hoodies, and of course, accessorized with just the right pair of shorts.

Well, it seems like the rank-in-file senators weren't too thrilled with Schumer's casual approach to Senate attire. The U.S. Senate has now put its collective foot down, passing a resolution that makes it official. Business attire is the new dress code for the Senate floor, and it was a unanimous decision, which, frankly, doesn't happen particularly often. This bipartisan bill brought forward by Democrat Senator Joe Manchin of West Virginia and Utah Republican Senator Mitt Romney lays it all out. For the guys, it's a coat, tie, and slacks. No exceptions.

And yes, I said slacks. You could also say trousers or pants. As for the ladies, well, the bill is a bit vaguer, simply stating business attire without diving into specifics. What's surprising is that even Schumer himself, supported the measure, saying, quote, though we've never had an official dress code, the events over the past week have made us all feel as though formalizing one is the right path forward. See, they can get things done. So, there you have it, a little more formality on Capitol Hill. After all, showing some respect for the institution by dressing appropriately really isn't asking too much of our senators.

And that, my friends, is the President's Daily Brief for Friday, 29 September. If you have any questions or comments, reach out to us at PDB at thefirsttv.com. I'm Mike Baker. I'll be back on Monday. Until then, stay informed, stay safe, stay cool.