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The governor of California has recently become a podcast host as well, but his choice of guests has drawn criticism from his party. Today, Joshua Green writes about just what Gavin Newsom might be thinking with his right-wing interviews. Plus: Robinhood’s CEO sees a lot of melding in markets, and why “no tax on tips” is popular among the public but not with tax experts. If this email was forwarded to you, click here to sign up.

As a party, Democrats are a pretty dispirited bunch: paralyzed by indecision, saddled with geriatric leaders and uncertain of how—or even whether—to oppose President Donald Trump. During his recent address to Congress, members drew widespread ridicule for holding up little round protest signs, which made them look like overdressed bidders at a cattle auction.

Love him or hate him, California Governor Gavin Newsom has broken from the Democratic pack. Newsom has always had a fondness for the camera. But after Kamala Harris’ presidential loss and his party’s collapse, he’s also started a podcast, unsubtly titled This Is Gavin Newsom, onto which he’s invited a series of edgy, right-wing guests of the sort you won’t find on Pod Save America or other liberal fare.

This week, Newsom hosted former Trump chief strategist and right-wing podcast impresario Steve Bannon. Many Democrats view Bannon as a fascist, an authoritarian or worse. So the friendly interview between supposed political rivals inevitably generated some controversy. Former Republican Representative Adam Kinzinger, a prominent Never Trumper, blasted Newsom’s “stupidity” for hosting Bannon on his show.

But drawing attacks from #Resistance heroes like Kinzinger and shouty liberals seems to me like the whole point of Newsom’s enterprise. He’s trying to stand apart from a Democratic Party that many Americans believe is arrogant, judgy and hostile to those who don’t embrace its increasingly left-wing orthodoxy. For a guy like Newsom, long believed to be eyeing a White House bid, putting some distance between yourself and the party America just rejected isn’t a bad strategy.

Newsom. Photographer: Sarah Reingewirtz/MediaNews Group/Los Angeles Dail/Getty Images

Anthony York, a spokesman for Newsom, wouldn’t go quite that far when I asked him to explain Bannon’s appearance on his boss’s podcast. “The whole idea was to have people on, including people he has deep disagreements with, to try to understand what we as Democrats don’t—and to create a space to have conversations that aren’t cable news shout-fests,” York told me. “He knew he was going to take criticism from people for ‘platforming’ someone like Bannon.”

Another appeal of an edgy podcast, as York noted, is that it theoretically puts Newsom in a space where Democrats don’t get much traction. Almost all the top podcasts and cable news shows are right-leaning or outright conservative. “These are forms of communication where Democrats are behind,” York says. “This is the governor trying to find ways to catch up, and for Democrats to communicate not just with ourselves but people we’ve clearly lost ground with.”

Although it’s doubtful many of the voters Trump flipped in South Florida or the Rio Grande Valley are tuning into the latest episode of This Is Gavin Newsom, the donors, consultants and political chattering class who are already thinking about the 2028 presidential race are paying plenty of attention to Newsom’s gambit.

Bannon is one of them—and happy to offer his own analysis. “He’s tacking to the center, trying to dump all his wokeness,” he says of Newsom. “And he wants to get as far away from the California model as he possibly can, because it’s toxic for Democratic candidates.”

In Brief

Five Questions for a Retail Investing Leader

Vlad Tenev, chief executive officer of investing app Robinhood. Photographer: Timothy Mulcare for Bloomberg Businessweek

Bloomberg Television’s global finance correspondent Sonali Basak recently talked with Vlad Tenev, the chief executive officer of the investing app Robinbood. He’s bullish on the prospects for AI, crypto and Donald Trump. Here’s a sample:

What’s the biggest impact the Trump administration will have on the stock market?
Their intent appears to be to ensure that the US is the best place to do business and the leader in both of the emergent technology industries coming to the fore: crypto and AI. They’ve got smart people thinking through these problems, and so we should expect the bureaucracy to be reduced, more regulatory clarity and hopefully tighter integration with the private sector to make it happen.

Keep reading: Five Questions for Robinhood CEO Vlad Tenev

‘No Tax on Tips’ Is a Tricky Idea

Photographer: Caroline Heinecke for Bloomberg Businessweek; Prop stylist: Alin Bosnoyan

The way Donald Trump tells the story, a young waitress at his Las Vegas hotel restaurant last year mentioned that tax collectors were hounding her “viciously” for tip income. “ ‘You know, sir, you should have no tax on tips,’ she said. I said, ‘What did you just say? Say those words again,’ ” the president recalled earlier this year. “ ‘You just won the election for me.’ ”

“No tax on tips” entered Trump’s stump speech in June, later joined by no taxes on overtime and on Social Security and a host of other generous promises. Each raised questions that the candidate didn’t try to answer in any detail. Now that he’s back in the White House, Trump, along with congressional Republicans, faces the challenge of turning his slogans into sections of the Internal Revenue Code. It won’t be easy. Nothing can set off a chain of unintended consequences quite like revising tax rules.

History isn’t kind to policies that favor one kind of income over another, Ben Steverman writes in a column for Businessweek: How Trump’s ‘No Tax on Tips’ Could Backfire for the Working Class

Brewing Trade War

200%
President Trump is threatening to enact a tariff at that level on European wine and other alcoholic beverages. Shares in European producers fell, including LVMH, which owns Champagne houses Moët & Chandon and Veuve Clicquot.

Content on the Sidelines

“Buying the dip now is like buying discounted tickets to a show without knowing who’s performing.”
Dave Mazza
Chief executive officer of Roundhill Investments
In a few short weeks, Trump has started silencing the buy-the-dip stock traders who set the tone on Wall Street for the better part of two decades. In their place are growing calls to lock in profits and sit on the sidelines.

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