Makers here in new york city. Stephanie is on assignment to date stop you today. You will see her back shortly. There is no better place to go right now than the political earthquake in washington. As you probably already know, eric cantor was shockingly defeated in virginia last night. He was one of wall streets favorite congressman, bankers and bankers and traders believed he understood what they wanted to see happen and were among his Biggest Campaign contributors. His loss has immediate implications for a range of policy issues trickle to the business community. Latest. Ok brings us the and also with us is chuck gabriel, president of alpha partners, which advises Institutional Investors on matters of policy and politics. Hill, you are on capitol every day, and if im not mistaken, you saw eric cantor there yesterday, which had to Say Something about how he felt going into this primary election in virginia. It says a lot. He was at a gop News Conference in the morning. He was taking part in both on the floor as late as 2 30 p. M. In the afternoon. There was a election in his district, and by 7 00 or 8 00 last night, the word came that he had been defeated by a relative unknown, and economics professor from Randolph Macon college. Huge ripple effects, not only on the House Republican leadership, the party itself, but also as you said, the business community. There will be short and longterm ramifications. I talked to peter king of new york about that. Almost anything controversial will be put to the side. Whether it is Immigration Reform or reforms in the bank. Thank out we are not coming up on a debt ceiling or a shutdown. Fortunately, we can keep the government running, but i do not or herthing dramatic chattering over the next several months. The first big impact here, you will see Tea Party Conservatives demand a seat at the table. Maybe eric cantors seat, or even possibly John Boehners seat as speaker of the house. Conversation with alpha,abriel from everyone is scratching their heads, wondering how eric cantor did not see this threat coming, how he allow this to happen, and what this signals for the gop, for the future of the party, for policy, and possibly even the midterm elections. Tell us your thoughts. A danger inhere is reading too much into this. It might be a classic case of an income and becoming a little bit aloof at home in an antiincumbent year. Thes interesting to see contrast that Lindsey Graham was a big immigration supporter and he won hamburg and he won home state of north carolina. Earthquake. T of an it was almost three years ago that the congressmans district was the epicenter of that earthquake. And he was socalled he was one of the socalled young guns. Republican inng the house. What does this mean for at the very least, house leadership in the Republican Party echoed many saw eric cantor as the natural excess or for john boehner in the Republican Party . Because many saw eric cantor as the natural successor for john boehner as speaker. That is a very important question, because it is not clear. And peter may be getting some wins about this doubt on the hill this morning. It is not clear whether the Republican Leadership might not feel the need to send a signal fairly quickly, perhaps one of continuity that john boehner might be willing to stay. Been thoughts that he might leave, this particular particularly if the democrats keep the senate. The readthrough on this is quite interesting. Peter, you mentioned that the tea party is going to want a seat at the table. Many even in virginia may find it hard to believe that as many voters as came out last night in this primary considered eric ,antor too liberal for the gop but that appears to be the message sent in a primary race. This is any idea how going to play out in the next days and weeks . First of all, theres the question of whether virgin you democrats voted in a primary. That is one thing his folks are talking about. But there are already wider implications. Of erdrich the early word leadership scramble, cantor will not resign. There will be more pressure on the leadership to step forward and say how they will handle this, and whether or not john boehner will indeed continue as speaker, and whether or not there will be a challenge. Fiscal conservative, tea party sure, thesebe are three faces that would like a seat at the table, a bigger see than they have now. They may have to satisfy them by moving one of them into cantors position. Chuck, what do you think thosethose three echo three . What are the policy implications going to be, at the very least, between now and november midterms . Ken jordans name is often mentioned, but he would be behind handling as the conservative challenger. Jeb hensarling as the conservative challenger. We could be looking at his abdication from the house i Natural Services committee. There is Financial Services committee. There is a lot of important work that he would be stepping away from. There is a reauthorization and is very important to boeing. But then you get into the next congress and we have just seen what i would call an epic frail what i would call an epic fail of fannie and freddie. The conventional wisdom that has emerged on the tail of that is that we are unlikely to see housing reform until 2016, partially because Jeb Hensarling has had a hard line about not only ending fannie and freddie, phasing them out, but not replacing them. A new chairman might shake that up. Chuck, before we let you run, i need to ask cantor was popular on wall street in part because of his stance on the issues you just mentioned. Who is wall street going to champion now . Well, the important thing is the readthrough for this next republican primary and for this fall. It wont matter a lot with regard to the november Election Results where the senate is particularly in play. But that is a great question. I dont think it will be kevin mccarthy. Tom price is an interesting name, one that peter mentioned earlier. But that has to be sorted out, no question. Thank you very much, chuck gabriel. Hang on, peter. We may come back to you. For the moment, i need to thank you gentlemen. Im not sure whether we will be able to continue the conversation. We have some important reaction to bring you to eric cantors primary loss. This is coming to us from the president of the u. S. Chamber of commerce, tom donahue. He is standing by with our own alix steel at the Goldman Sachs north American Energy conference in lower manhattan. Alix steel, over to you. Thank you. The explosive news of the day, cantors lost the primary, what is your reaction . I think cantor is a very serious person who was working on some challenging and controversial issues, and who was in the leadership. I think he provided a lot of help and balance and we will miss him. Do you think it was a vote against the chamber of commerce at the end of the day . O, come on. We have been in 12 primaries since we started this. We have not lost one yet. We were not in that primary. The headline is sort of interesting. Your headline, the headlines in the press the tea party eats cantor. The tea party had nothing to do with it. They did not have any money or people there. It was an attractive professor in a very, very conservative district in virginia. Everybody was surprised. But he was definitely the guy on the outside. But is everybody on the outside a tea party person . Not necessarily. But eric cantor had millions from wall street banks. What does that tell you about the state of business when it comes to getting elected . Should look at what happens throughout the primary process, which is a recognition with half of the voting population. They are having primaries in both parties. Iny ought to put people place who have a chance at being elected, and if they are elected, will go in and try to do things to create jobs, to drive the economy, and to put some common sense back into people working together. It seems like a tea party or there will unseat an incumbent, potential to. Stick with has the potential to. Eric cantor did not even see it coming. You didnt see it and i didnt see it, but there are 435 members of congress. I feel badly for eric cantor. He is a very talented guy. But we are not going to fold up our tent and go home and not participate in the boy scout meeting because of one race. I look at what is happening across the whole system and i think people across this country are looking for folks that want to make something happen, that want to bring this country to a point where we create more jobs, where we drive Economic Growth and deal with the problems we have. Of othero you think races where we might see a tea Tea Party Candidate upset and incumbent . I think in mississippi, there were issues. There were highly emotional issues and issues of age and other things. And not many people voted. Now we will see in two weeks from now when they have a real election and two people sitting there going facetoface what happens in that election. Maybe that will make it more instructive. Is the bottom line is, this what the american process is about. And it is, by the way, how do you make money. You have to get a conflict going here. What are the issues that you as the president of the chamber of commerce care about . Like immigration. It seems like that was one of the reasons why he got voted out. That would be old that will be for us to find out. I dont know that is the case. I dont believe immigration is dead. Might have some change in the timing, but there are enough people in the yesterday, anyway who would have easily voted for immigration bill economy need an immigration bill. We needed for four or five reasons. We educate all of these people and send them home. On the lower end, we need these workers to come here, or you will have to go and pick your motherinlaw up at the nursing home and bring her home to live with you. These are trickling issues for the cut Critical Issues for the country. Whether we deal with them now or wait until they get worse. Will we see Tea Party Candidates, or outsiders, taking on leadership positions that disrupt that agenda . I have found over a long time frame that whoever eventually ends up in leadership positions has to do with the possibility of that position. When you are the outside person trying to work your way in, you can say all kinds of things. When you are the person with a responsibility, when the American People look to you to make decisions that affect them, their children, our economy, and our security, leadership all over the place does a better job. But we have not really seen that with the tech part with the tea party. Look at ted cruz and the Government Shutdown. Look at this new at what has happened with the new influx of republicans. There are a lot of serious people who have been nonaided and elected. Ted cruz, by the way, he just had a big deal down at the republican conference in texas. What was he doing . He was more calm and moderate and talking about issues, because he understands that being aggressive while you are noting into the game is exactly what you can be if you want to leave the game. A long time at this in this country and were going to stay at it and you will do, more often than not, what is good for the American People. Whether the Republican Party assimilates the outsiders or not, what does this mean for businesses . I think businesses are doing fairly well. Even though they just lost an ally in cantor . We have lots of allies. You can try to make this the story of the year, but it will not last very long. We have the elections coming up in two weeks. We have other activities that we all have to deal with around the world. Have serious questions about what we are going to do about jobs and growth and yes, immigration. We have serious questions about what we will do about infrastructure. And then on Social Security, because in just a few weeks we will lose one of the Social Security programs and have to deal with that. The bottom line here is that i feel badly for eric cantor, because he is a great servant to the American People. Have you spoken to him, by the way . Not yet. We are here. But the bottom line is, this is so exciting. Very exciting. Does this affect John Boehners job as speaker . Not if he wants to be speaker. Are you saying that if he does not want to be speaker he is in trouble, or a fee wants to be speaker or if he wants to be speaker he is in trouble . Im sure he wants to be speaker. But his job is not in trouble. Why is his job not in trouble . Because he has enough to get elected. That is how it works. You might have 10 exciting stories you can tell what you think of Jeb Hensarling . What do you mean . Republicanins the leadership, what do you think about him . I would have to think about that. Tohink the congress has choose their own leadership. We have never, ever allow the chamber to get into the business of who they choose as leader. That mistake them up people that it is a bad mistake about people that do that. We have to get good leadership so that whatever comes up to a vote or whoever is in leadership, we have the best people there to get the best possible results. Preference for majority leader . I would never take a preference. That would be a contradiction of what i just told you. But but you will but you want someone that is good for business. You want someone who will work with you. Everybody will work with us. We have 300,000 members. We represent 3 million companies. We have thousands and thousands of chambers all over the country. The opportunity to go and sit down and talk to people about our issues is wide open. What we are concerned about is making sure that they get a fair hearing give a fair hearing to our views and vote according to their conscience. We have been doing pretty well on that for a long time. You are so calm, on the news of the day, so calm. Thank you so much. I will send it back to you in the studio. Terrific stuff. A great opportunity to speak with the u. S. Chamber of commerce, tom donohue, in the wake of eric cantors surprising loss in the gop primary. Peter cook is still with us. It seems to me that alix steel in the hit the nail on the head, Abram Markley called a remarkably calm tom donohue in the face of such a striking development. Tom donohue is one of the most powerful and respected lobbyists in this town for a reason. That was a very professional job by Thanh Donohue Tom donohue, but there is no question that eric cantor is a hit to the chamber of commerce. And a hit to the business community. This is a lawmaker where ceos came to capitol hill to talk about issues, the went to his office first. This is a defeat for the chamber of commerce. They have a lot of allies on capitol hill and are a force to be reckoned with, but they will have to deal with this defeat for eric cantor. It is not something they thought about 24 hours ago. Peter cook, thank you. Overseas, aime, standoff between taxis and is playing out. Are and limo drivers bringing traffic to a standstill, protesting the reach that uber has and the threat it poses to their livelihoods. Are in trafalgar square. Olivia, begin by what you see on the ground there. What is it like echo what is it like . Hear you. Arely there is a ton of noise. Cap drivers have been honking their horns all day long. See we are in trafalgar square. Down there westminster. It is a maze of red. A two mile radius in the center of london where traffic is barely moving. And ambulances trying to make its way. An ambulance is trying to make its way. [siren] [indiscernible] between 10,000 bs per day. Ca ofhas had the affect gridlock in london. As anr is operating but the apper, comes out today. They are not doing their jobs. Uber cannot operate as they are operating now. They are using their smart app as a meter. Cannot private vehicles cannot use a meter, and that is what they are doing. The point is, we are asking them to enforce the op enforce the laws that operate in london. Thank you so much. The issue here in london is that they say uber is operating as a taxi meter illegally. There is much reaction to a very disruptive Startup Technology in what is a very heavily related industry. Olivia sterns in trafalgar square. You can see for yourself how the tests by a london cabbie by london cabbies is bringing traffic to a standstill. You have to ask how this will affect uber in the long run. Is this a blip on the screen, or does this pose a more serious threat . Lets bring in paul kedrosky, managing partner at f k venture partners. And we point that out, because uber is a venture backed company. Does this represent a threat to our business in the long run . Or even possibly in the short run . Give us perspective. Is one of the longstanding reasons why the taxi industries, and Industries Like this has been avoided by venture capitalists. Even though there is a huge opportunity to make dramatic change, you face an industry that is entrenched and deeply politically connected, and protected him anyway in many tos by Regulatory Framework stay in business. We are seeing all of this in the context of european taxi blockade and strikes. This is exactly what you might worry about. I have to say, though, the early stuff im hearing, especially out of the eu with respect to proposals to make it more difficult for uber to enter suggest that uber has a stronger position than many people expect. There is an intent to open up more competition. In london, theres a problem, but that is not what im hearing on the continent. Is this because there is such a long tradition behind the london cabbie . The knowledge that they have to pass that makes them a distinct breed from your typical cabdriver . Right, theyy entr