California Governor Gavin Newsom | Bloomberg Newsmaker Event

Summary

California Governor Gavin Newsom spoke with Bloomberg Businessweek Editor Brad Stone at a Bloomberg Newsmaker event in San Francisco. The conversation ranged from federal immigration enforcement and political conflict with the Trump administration to California's economy, energy policy, the proposed billionaire wealth tax, and AI. Newsom opposed the state wealth tax, defended California's economic record, discussed PG&E regulation and grid regionalization, and gave a nuanced long-term view on AI. He also took audience questions on AI, federal law enforcement, and pending California legislation.

• Newsom criticized federal immigration enforcement in Minnesota and California, warning about politicization and erosion of democratic norms.
• He defended California's economy, citing its rank as the world's fourth-largest, Fortune 500 growth, manufacturing and agriculture strength, and leadership in AI, robotics, fusion, nuclear, and quantum.
• He opposed the proposed 5% California billionaire wealth tax, arguing it would cause wealthy taxpayers to leave and reduce long-term state revenue.
• He said PG&E is improved under AB 1054 and he is not convinced the state should break up the utility monopoly or enter the utility business.
• He discussed California energy policy, including a western grid regionalization deal expected to save about $1 billion annually and support clean energy exports.
• He declined to take a binary view on AI, saying a boom-bust cycle could still leave durable infrastructure and a new platform, with near-term winners and losers.
• He commented on federal policy risks, including HR1's fiscal impact, tariffs, and mass deportations, while taking audience questions on AI investment and state legislation.