--:-- [Upbeat music fades out]
--:-- John Bickley: President Joe Biden officially announced on Tuesday that he is seeking a second term.
--:-- Georgia Howe: When I ran for president four years ago, I said we're in a battle for the soul of America, and we still are.
--:-- John Bickley: We discussed the announcement and some challenges the president will face. I'm Daily Wire editor-in-chief John Bickley with Georgia Howe. It's Wednesday, April 26th, and this is Morning Wire.
--:-- Georgia Howe: Letters speak! Letters speak!
--:-- John Bickley: Several protesters were arrested at the Montana Capitol building after activists disrupted House business. We break down the events leading up to the unrest.
--:-- Georgia Howe: And vacant office space has reached the highest level in the country's history. What does it mean for the U.S. economy?
--:-- John Bickley: This generation behind you and me, they're happy working from anywhere else but the office.
--:-- Georgia Howe: Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know.
--:-- John Bickley: As was widely anticipated, President Joe Biden announced his 2024 re-election bid on Tuesday with an early morning three-minute video posted to social media.
--:-- Georgia Howe: Biden made his bid official exactly four years to the day after he launched his successful 2020 campaign for the White House.
--:-- John Bickley: But this comes at a time when polling shows that even Democrats are wary of a Biden run and amid multiple growing scandals.
--:-- Georgia Howe: Here to discuss is Daily Wire contributor David Marcus.
--:-- David Marcus: Hey, Dave. So Biden has entered the fray. Were there any surprises?
--:-- John Bickley: Good morning. I don't think so.
--:-- David Marcus: It wasn't just the date that recalled his 2019 announcement, but also the theme. Back then, he featured the Charlottesville racially motivated violence as his creed decor. That was replaced by images of January 6th.
--:-- John Bickley: Other than that, all very similar.
--:-- David Marcus: In fact, the final line of the video was, finish the job, which is emerging as a Biden 2024 campaign slogan.
--:-- John Bickley: Given the relative success Democrats had in the midterm and the fact that it looks increasingly likely that Donald Trump could again be his opponent, Biden's basically saying, as we used to say on the pickup basketball courts in Philly, let's run it back.
--:-- David Marcus: There are some new headwinds this time, though, not just polling showing voters want another option, but even the New York Times editorial board is arguing that the president's age should be taken seriously.
--:-- John Bickley: Did any of that come up?
--:-- David Marcus: No. When Biden gets confronted with these realities, he tends to say something like, look at the polls, Jack, 92% of Democrats say they'll vote for me.
--:-- John Bickley: And look, that's true.
--:-- David Marcus: Even the Times editorial, which we all looked at and said, wow, isn't that remarkable? I mean, if you take a step back, the gray lady knows that people are worried about the fact that Biden is old enough to have been in the studio audience for I Love Lucy.
--:-- John Bickley: But this is the kind of way of saying, OK, it's an issue, but it doesn't have to be a deal breaker.
--:-- David Marcus: I think the White House throws the aviator sunglasses on Joe and shows him cruising in the Corvette and they hope for the best.
--:-- John Bickley: The Republican National Committee replied with its own ad to his announcement.
--:-- David Marcus: It was rather stark. It showed a future under Biden filled with growing crises.
--:-- John Bickley: Let's give a listen.
--:-- John Bickley: This just in, we can now call the 2024 presidential race for Joe Biden. Watch Federal America This morning an emboldened China invades Taiwan Financial markets are in free fall as 500 regional banks have shuttered their doors Border agents were overrun by a surge of 80,000 illegals yesterday evening. Who's in charge here?
--:-- David Marcus: Does that approach move the needle? Not exactly subtle, huh?
--:-- John Bickley: Look, we could call this Republican pouncing.
--:-- David Marcus: Many observers thought Biden would try to get a higher approval rating before announcing. He's underwater on all these issues, and Republicans are probably wise to poke at them.
--:-- John Bickley: What could be emerging is a very fear-driven campaign, Democrats claiming that the GOP will take away women's and trans rights and refuse to enact gun reform.
--:-- David Marcus: Meanwhile, Republicans will focus hard on those areas like foreign policy, the economy, and crime, where Americans aren't thrilled with their current commander-in-chief.
--:-- John Bickley: This also comes as his son, Hunter Biden's legal woes, may be coming to a head and amid reports that he might actually be living at the White House.
--:-- David Marcus: How does all that play into the timing of the announcement?
--:-- John Bickley: Yes, the New York Post's Miranda Devine has reported on some credible evidence that Hunter, along with his third wife and their child, have been living at the White House.
--:-- David Marcus: They've been seen there quite a bit, as well as traveling with the president and Joe Biden.
--:-- John Bickley: Aside from the hilarious sitcom possibilities, if Hunter is living there, it's alleged that it could be in order to avoid legal filings from a paternity suit involving the prodigal first son.
--:-- David Marcus: What is clear, however, is that Hunter has of late been a much more visible part of the president's entourage, including during that recent trip to Ireland.
--:-- John Bickley: Right. It might seem counterintuitive, but right now, Team Biden is leaning into and embracing Hunter, possibly because Joe Biden comes off looking like a loving dad.
--:-- David Marcus: Republicans, of course, are going to keep questioning whether the loving dad is also the big guy who takes 10% from influence peddling schemes.
--:-- John Bickley: They certainly will.
--:-- David Marcus: Final question. This announcement wasn't made at a big speech or rally, but is that something we could still see?
--:-- John Bickley: Joe Biden won in 2020 from his basement, and basically his people think he can do that again.
--:-- David Marcus: I don't think we should hold our breath for big, exciting events. This is a president who doesn't do a lot of interviews or press conferences, so finishing the job may well include staying out of the limelight.
--:-- John Bickley: All right. Well, David, thanks for joining us.
--:-- David Marcus: Thanks for having me.
--:-- Georgia Howe: That was Daily Wire contributor David Marcus.
--:-- John Bickley: Montana's House Speaker canceled Tuesday's session after protesters shut down the state house the day before over the censure of Democratic Representative Zoe Zephyr.
--:-- Georgia Howe: Zephyr is the first transgender lawmaker in the history of Montana's legislature.
--:-- John Bickley: Daily Wire reporter Tim Pierce is here to tell us more.
--:-- Tim Pierce: So, Tim, Zephyr has now been barred from speaking for several days now. Why?
--:-- John Bickley: That's right. Zephyr's mic was cut on Thursday last week over what Republicans called a breach of decorum.
--:-- Tim Pierce: During debate over a bill to ban medical transition treatments for minors, Zephyr said that Republicans have blood on their hands.
--:-- John Bickley: Here's what that sounded like.
--:-- Tim Pierce: If you are forcing a trans child to go through puberty when they are trans, that is tantamount to torture. And this body should be ashamed.
--:-- John Bickley: And if you vote yes on this bill and yes on these amendments I hope the next time there an invocation when you bow your heads in prayer you see the blood on your hands
--:-- Tim Pierce: Provocative comments like that aren't new for Zephyr.
--:-- John Bickley: Last week after the gag order was put in place Zephyr was blocked from speaking against a bill that would create a legal definition for man and woman based on biology.
--:-- Tim Pierce: Earlier this year, Zephyr did speak out against a bill that said misgendering or deadnaming a trans-identifying person is not discrimination under state law.
--:-- John Bickley: So Zephyr was silenced on the floor due to an alleged lack of decorum. And then as a result, just a few days later, there were protests inside the Montana Statehouse building.
--:-- Tim Pierce: What happened there?
--:-- John Bickley: Yes, seven protesters were arrested and charged with misdemeanor criminal trespass.
--:-- Tim Pierce: They refused to vacate the house gallery after police ordered them to, so they were arrested and let out by riot squad officers.
--:-- John Bickley: The protest began as a rally outside the state capitol building in support of Zephyr.
--:-- Tim Pierce: Republicans have effectively banned Zephyr from speaking on the floor and said the lawmaker won't be allowed to speak again until an apology is made and Zephyr takes back the comments.
--:-- John Bickley: On Monday afternoon, Zephyr tried to speak in opposition to a bill and was blocked from doing so.
--:-- Tim Pierce: Protesters then shut down the house for about 30 minutes with various chanting.
--:-- John Bickley: A crowd of protesters stood outside while the arrests were taking place and they cheered as several suspects were hauled away.
--:-- Tim Pierce: The crowd also scolded one of the law enforcement officers involved for misgendering the person he was arresting.
--:-- John Bickley: Here's what that sounded like.
--:-- Tim Pierce: So I brought her down. She's been exceptionally nice. Okay, sorry about that.
--:-- John Bickley: Zephyr put out a statement in support of the protesters and told reporters that it would be a top priority for the lawmaker's office to see all those arrested set free.
--:-- Tim Pierce: A fund was launched almost immediately for those arrested, though it's not clear how much of that will be needed.
--:-- John Bickley: All those arrested were booked and then released.
--:-- Tim Pierce: Now, what was the GOP response?
--:-- John Bickley: Republicans were more critical.
--:-- Tim Pierce: GOP leadership put out a statement condemning the violence by far-left agitators.
--:-- John Bickley: And they also said that they stand firm in their commitment to decorum, safety, and order.
--:-- Tim Pierce: All right. Well, Tim, thanks so much for reporting.
--:-- John Bickley: That was Daily Wire reporter Tim Pierce.
--:-- Georgia Howe: The number of empty office buildings in America has now reached its highest point on record, as the commercial real estate sector has been rocked by the largest downturn in decades.
--:-- John Bickley: Here with more on the city's hit the hardest and what it means for the health of America's economy is Daily Wire senior editor Cabot Phillips.
--:-- Cabot Phillips: Cabot, not the sort of record you want to see broken. What's going on here?
--:-- John Bickley: Yeah, when talking about the real estate market, it's easy to focus only on the residential side, but the commercial real estate sector is a hugely important aspect of our nation's overall economic health, and it's in serious trouble.
--:-- Cabot Phillips: Last quarter, the number of vacant office buildings hit 12.9%, the highest rate on record, exceeding the previous time arc set during the 2008 financial crisis.
--:-- John Bickley: But some cities have been hit harder than others, 29% of office space in San Francisco now sits vacant. That is easily the highest on record for the city.
--:-- Cabot Phillips: Elsewhere, New York City sits at a 16% office vacancy rate. That's also a record high.
--:-- John Bickley: Chicago is just over 20%, another record high.
--:-- Cabot Phillips: The list goes on for cities across the country.
--:-- John Bickley: And that lack of demand is causing prices on commercial real estate to plummet.
--:-- Cabot Phillips: Nationwide office building prices have fallen 25% since the start of 2022 alone.
--:-- John Bickley: Wow, that much. A bunch of unwelcome records there.
--:-- Cabot Phillips: So what does this mean for the economy more broadly?
--:-- John Bickley: Well, it's important to remember that all that empty office space doesn't just impact landlords who are losing money on their buildings.
--:-- Cabot Phillips: It means that local restaurants and shops see fewer customers throughout the day and local governments taking less revenue from property taxes.
--:-- John Bickley: It's also bad news for the banking industry, which has already experienced a year of turmoil.
--:-- Cabot Phillips: Commercial mortgages account for almost 40% of bank holdings in the U.S.
--:-- John Bickley: And while a lot of people might not be too sympathetic towards banks right now, they've now got trillions of dollars tied up in assets that are rapidly depreciating, which could have serious ramifications for us all.
--:-- Cabot Phillips: Here's Elon Musk earlier this month describing the threat posed by a collapsing commercial real estate market.
--:-- John Bickley: Commercial real estate used to be something that was a grade A asset. If a bank had commercial real estate holdings, those would be considered the highest security.
--:-- Cabot Phillips: Some of the safest assets you could have. Now, that is not the case anymore.
--:-- John Bickley: So we really haven't seen the commercialistic shoe drop. That's more like an anvil, not a shoe.
--:-- Cabot Phillips: So what are some of the factors in that downturn?
--:-- John Bickley: So when it comes to empty office space, the remote work revolution has played just an undeniable role.
--:-- Cabot Phillips: It's been well documented that many businesses have struggled to bring their workers back into the office after allowing them to work remotely during the pandemic.
--:-- John Bickley: Here's our friend Kenny Polcari, chief market strategist at Slate Stone Wealth on Fox on what that means.
--:-- Cabot Phillips: You're already starting to see companies defaulting on their debt, and that's only going to start to pile on when you think about companies having to decide, are they keeping us office space, not keeping it? Can they keep it? Do the workers even want to come back?
--:-- John Bickley: In beyond office buildings, brick-and-mortar storefronts have taken a huge hit as well, and e-commerce is largely to blame on that front.
--:-- Cabot Phillips: As millions of Americans have begun doing their shopping online, everything from small storefronts to large shopping malls have become less valuable.
--:-- John Bickley: On that note, the property values of shopping malls have dropped 19% since 2022 and are down 44% since 2016.
--:-- Cabot Phillips: So we're experiencing a revolution in how people shop.
--:-- John Bickley: According to UBS Group AG, 50,000 retail stores will be forced to close their doors in the next five years alone.
--:-- Cabot Phillips: And interest rates have played a role here as well.
--:-- John Bickley: Yes, they have. Anyone trying to buy a home this year has seen just how much higher their monthly mortgage payments are compared to years past.
--:-- Cabot Phillips: And when it comes to commercial real estate, even a 1% or 2% interest rate hike can mean millions of dollars more in costs each month.
--:-- John Bickley: And as more and more leases expire, those higher costs mean that many companies won't be able to afford renewing them.
--:-- Cabot Phillips: Those rate hikes also decrease the value of bonds and other securities, which makes real estate a less profitable option for large companies.
--:-- John Bickley: On that note, according to Green Street Analytics, U.S. property values have fallen 15% since this time last year. A steep drop in one year.
--:-- Cabot Phillips: Are there any positive trends that we're seeing here in terms of commercial real estate?
--:-- John Bickley: Yeah, it's worth noting while office buildings have really struggled, one sector of commercial real estate that's actually thriving right now are data centers and warehouses.
--:-- Cabot Phillips: As more commerce moves online, a growing number of companies are building out their data and cloud computing centers, which requires large amounts of space.
--:-- John Bickley: And that is good news for those trying to sell warehouses.
--:-- Cabot Phillips: And also, while the property values of hotels and apartment buildings have dropped because of inflation, they're now able to charge higher rates, which means they're still largely profitable.
--:-- John Bickley: Well, Cabot, thanks for reporting.
--:-- Cabot Phillips: Anytime.
--:-- Georgia Howe: That was Daily Wire's senior editor, Cabot Phillips.
--:-- John Bickley: That's all the time we've got this morning. Thanks for waking up with us.
--:-- Georgia Howe: We'll be back later this afternoon with more news you need to know.
