explain what is happening, what is the process for verification, and how it goes forward. kevin: as more time goes on. the state of the union tonight, tomorrow the acquittal in the senate, new hampshire on tuesday. will iowa matter? craig:you hours i have had -- tg it -- the busiest 72 hours i have had in my career. iowa matters. pete buttigieg seem to have a good night. bernie sanders seem to have a good night. that will help them in new hampshire's. kevin: they did not get the headlines they wanted. people staying up late did not get the moment to declare someone a winner. that hurts them. i am struck by the biden campaign strategy. it would seem this is a strategy to go process argument and say we are prepared for the long run , so meet us in new hampshire. craig: when you're a politician and you are losing, you start talking about the process. joe biden thought he was at the top of the result, he would be screaming to release them. instead there is jumping on what is the process, what is the count look like? there is a widespread feeling joe biden did not do well and that is what we are seeing. talkingoming up, we are about the policy as well as kevin: from des moines, this is cybersecurity and the president's state of the union address. he is tweeting this is reflectia "balance of power" on bloomberg television and radio. i'm kevin cirilli. larger process for the is set totrump lisa: i'm lisa abramowicz. democrats. i want to ask you about the policy. deliver his third state of the welcome to bloomberg money undercover. here in iowa. union address to a divided ethanol. congress amid a fast approaching general election and a looming show that provides valuable should even one party pullout, it is a significant policy and insight into alternative assets. impeachment trial vote in the senate expected tomorrow. we take you inside the world of economic implications. craig: already the iowa caucus for now, we are joined by our private debt, equity, and real estate. was hanging on by its supreme court reporter from fingernails. washington. it is one of the whitest states i'm really struck by the cash piling up as private equity in the union. pageantry every year of the state of the union. preps for another record year. the democratic party prides chief justice john roberts in all this demand for debt spurring sales typically itself on being a party of diversity. associated with market tops. a lot of african-american that chamber just ahead of this owner falls in love voters, hispanic voters. acquittal vote tomorrow, it will iowa was already under challenge from other states who think it be historic. with an offer he cannot refuse. >> certainly is. should not be first in line. let's get into the burning now when you mess up the caucus, issues. joining me it makes the argument for being we've been watching him for the past several weeks high above back in 2024 much harder. the senate, overseeing the kevin: these iowans take their trial. now he would just be an audience jobs very seriously. member. we are also joined by the former he will shake and with people, executive director director of he will be polite, try to show, the iowa democratic party. what are your former colleagues as much as he did in the saying in the last 12 hours? impeachment trial, almost no expression throughout the i am sure they have not slept. speech. kevin: meanwhile, the politics jean: that is true. i will not deny that the process , here in iowa, or the reporting results did not turn out like we had hoped. we have to separate two things. where they are releasing just before the start of the state of one is how it was reported and the union, most of the results two is the caucus itself. i am never going to be the in the caucus, and then the vote tomorrow. person who will sit in a chair in terms of where this state of and argue against the iowa the union address stacks up with caucus. other addresses for presidents who have gone through the kevin: why? impeachment process, how does it compare? greg: it is certainly remarkable. bill clinton had to do something jean: it is the best process and similar in 1999 with his democracy at work. we have to look at the four impeachment trial. early states as a package. we have iowa, we have new we will see what kind of tone donald trump strikes. will he be combative, go after hampshire, we have south carolina, and nevada, all democrats for bringing up the representing great diversity across the country, all for reasons of building party. the caucuses in the early states impeachment articles in the first place, will he try to move are about building the party forward? process and the democratic party equally in building the strength again, you'll have the supreme court there in the middle of it. of the democratic party in parts of the country. the other branch of congress not this is not about representation really involved in this political struggle but has been in iowa. drawn into it because of the it is about representation impeachment trial, and now the across the country. kevin: i was shocked by this. state of the union address. based on my grassley, and chuck reporting, talking to sources at does the republicans from iowa, the white house, those advising as well as the governor, another republican, released a statement the president on how he will this morning saying we have to communicate his state of the keep this, do not let this mess up with the app take away the union this evening, i'm struck by two things. he is set to be striking an first in the nation status. jean: absolutely. optimistic tone. from a rhetorical standpoint, he will be optimistic. we do take our caucus very seriously. from a policy standpoint, he has one of the reasons it is so beautiful is it is an investment. to combine the political aspects this is people investing their of this and talk to the suburbs. time and their energy and their what are you looking for on the policy front? thoughts and their money. greg: in some sense, the kevin: it is a big media thing. jean: absolutely. president is looking ahead to reelection. i'm talking about the volunteer aboutstarting to think efforts and the people who caucus. this is an investment, not just what is he going to be telling pulling a lever. we have remember the caucus is people why i should be reelected. backward just be about the party building towards november. for us, this is about beating trump in november. looking, complaining about what democrats have done. at somewant to talk we are trying to build up the democratic party. point about what he would do as representing the west, the president for the next four years. kevin: meanwhile, in terms of midwest, and the south and the east coast. all of these exercises are about the medicare for all, health care policies we are hearing, november and beating the republicans in november. the president will continue to raise the issue of the kevin: you hear from democrats affordable care act and the repealing of it, and prescription drug prices, as how important it is for them to well as economic policies as it win back the midwest part of the country, states like iowa, which relates to tariffs. the president carried by 10 percentage points. the president will talk to the i also anticipate that we will country tonight and this is the hear a little about the lasting political story of the coronavirus based on my reporting. last 24 hours and america's the stakes for this president on consciousness. the eve of impeachment -- before does this change what the you go -- the states are president has to say? craig: i am sure he will mention incredibly high. greg: they are. it and i am sure he will crow we also have a democratic party about it a little bit. in a bit of disarray after the there is a story in the bloomberg terminal that some people in the market think what iowa debacle, continuing into today. of course, the expected failure happened last night helps donald trump a lot because the of the impeachment vote. democrats look like the gang that cannot shoot straight. they cannot run their own he will have an opportunity, if election. it is the iowa democratic party he wants to, to do a bit of a and they messed it up. , to defendectfully victory lap. this is a president who likes to the former executive director of that sort of thing. kevin: greg stohr, thank you for the i would democratic party, and not to go against you, but joining us. this could have happened anywhere. cybersecurity is so crucial drink conversations -- breaking news, a headline crossing the bloomberg terminal. saudi arabia's public investment cybersecurity is so crucial. fund sold almost all of its conversations are going to have to be had. jean: absolutely. tesla holdings in the fourth quarter. that is according to a filing obtained by bloomberg. since 2000 for the iowa democratic party has been asked for eally more coming up, balance of power information every election cycle continues on bloomberg radio. i'll be hosting from here in des since 2004. moines. each time we have delivered that. for information and faster tune in for our special coverage of president trump's state of whatever monster we need to feed the union address kicking off at for that information. we have delivered. 9:00 eastern time. this is balance of power. where we have not delivered how we wanted to, we have looked at i'm kevin cirilli. ♪ our past mistakes and improved upon those. i have no doubt we will do an examination of what went wrong and we will improve upon that. we have historically improved upon that. iowa is still the best place because we know how to do this. craig: you are in the boiler room in the night of 2004. jean: i was in last night as well. craig: give us the scene. jean: i ran a satellite caucus last night and my caucus went beautiful. it was a satellite caucus at a senior living facility and those people would otherwise not have been able to pockets. kevin: who is in charge of the app? jean: i don't know that. kevin: shouldn't your colleagues know that -- shouldn't people know who the app was. was it tested for the first time last night? jean: i cannot answer that. my guess is it was stress tested. that is what happens. i would wager the i would democratic party stress tested the app. craig: what you think they are doing right now? if the chairman of the iowa democratic party came to visit us, what are they doing? jean: what we are doing right now is what we were doing last night -- taking calls from the precinct chairs and getting the correct data, which is what we want. accurate data. that is what i did when i went in after my satellite papas and i helped the party and then took calls and make sure we are getting the accurate results by hand and getting pictures of the caucus sheets. kevin: this happened in iowa, it could happen anywhere. it is so important. we will talk about the cybersecurity implications nationwide. it is a conversation that has been injected into the american consciousness. jean hesburgh, i very much appreciate your time to walk through this. and to craig gordon, the d.c. bureau chief, appreciated. i know you've had a busy morning. now let's get a check on the markets from abigail doolittle in new york. abigial: a risk on tone on this tuesday. take a look at the major averages along with the stocks in the u.s.. the s&p 500 up 1.7%. the sox outpacing those gains, up 3.1%. these are the best days we have had for the u.s. indexes since last year for the s&p 500 or the s&p 500 since last august. an incredible bounce from last week, which was the worst week for the s&p 500. re-shifting of views around the coronavirus and what it could mean for the global economy. speaking of the global economy, the emerging market index is also bouncing back. net-net since the fears around the coronavirus came out two weeks ago, all of these averages are down. on the day, confirming the risk on mood of investors. take a look at the 10 year yield, up a second day in a row, up eight basis points over the last two days. bonds pulling back the most since december of last year. not pulling back is tesla. let's take a look at a year today chart. 25 trading days this year of 2020, more than a double, up 118%. a huge short interest on the stock. some of those investors getting burned by the idea the stock was going down. that sends the stock higher. the 2013 parabolic uptrend did last. there is reason to think this will as well. where we have another bounce back on the day similar to equities, a commodity complex higher, not on the highs. the commodity complex had been up more than 1%, now up 125%. keep an eye on the commodity index -- now up .25%. keep an eye the commodities because they are less liquid and more of a town on the consumption. breaking news not so long ago, we had a shares of textron up 5.6%. top -- is inis in thes -- some investors see debt as too high. textron benefiting. kevin: thank you to abigail. the tesla story continues. now the first word news update here is mark crumpton. mark: the i democratic party says delays in reporting the outcome of monday's caucus were due to a coding issue that has now been fixed. the party says it hopes to release results sometime today. officials say they believe the parties reporting systems were secure and there was not a cybersecurity intrusion. candidates left iowa monday night for new hampshire without the outcome of the contest being announced. senate majority leader mitch mcconnell is slamming house democrats drive to impeach president trump as "the most rushed, at least fair, at least thorough in history." the kentucky republican opened the session by calling the impeachment charges constitutionally incoherent. leader mcconnell has dodged questions about whether the president's actions questioning -- pressuring the ukrainian leader to announce an investigation of joe biden were inappropriate. fromresident will pipit impeachment to his drive for reelection. he will deliver the annual state of the union address. the theme of the speech, the great american comeback. he will speak before a joint session of congress tomorrow. the senate is expected to acquit him in the impeachment trial. time, a the second death by coronavirus has been reported outside mainland china. cable television in hong kong says the victim was a 39-year-old man who had an underlying illness. china says the number of confirmed cases is now 20,000. at least 495 people have died. macau is taking steps to stem the threat of the violence. -- the threat of the virus. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. kevin? kevin: thank you, mark. coming up, we will take a look at technical difficulties faced last night and what it means for the coming primaries. tonight, tune in for our state of the union coverage. david westin kicks that off at 9:00 eastern. this is "balance of power" on bloomberg tv and radio. i am kevin cirilli. this is bloomberg. ♪ kevin: this is "balance of power" on bloomberg television and radio. i am kevin cirilli in des moines, iowa. the breakdown in the reporting of iowa caucus results last night has been tied to failures in the mobile app that may not have been ready for debut. for more on what that means is the founder of the national security institute at george mason law and a former senior advisor to the house intelligence committee. he comes to us from washington. thanks for your time and for joining us. what went wrong last night and what can be done to fix it? >> we don't know a lot yet, but we know there is an app the precinct leaders were given to transmit the result back up the county level and then from the county to the state party and at some part of that process broke down. the results did not get there. they were inconsistent. what they have done is as of 3:00 they were sending staff to every county. there were 99 counties in iowa. i was out there in 2004 working on the reelection campaign of president bush, and it is a lot of territory to cover, a lot of individual precincts to collect the individual ballots and the cards and match them up against the totals they have. when they report the results, it will be very late, i'm not sure we will get them today, that there very accurate. we talked earlier about the political ramifications, but fundamentally, if you're outside of the washington bubble, this is perplexing. this is confounding as to how this could happen. it could happen anywhere, could it not? jamil: absolutely. most states have a solid electoral system. they have been using voting machines for a while. in 2000, romero the punchcard challenges and the hanging chad and we thought this would -- we would go to digital ballots. now the challenge is what about the cybersecurity challenge, what about the technical challenge? the caucus is in the middle. they have been doing promises since the 1800s. there is a tradition of doing these things. there is a new technology that did not have the capability to hold up. whether they did not test it right working nose what went wrong. they are saying it was not a hack. if you do not have paper backups, what the challenges might be going forward, particularly as we think about election manipulation efforts going forward by nationstates. we do not know they will come after our votes. they have not done that yet. it is still something to be thinking about and getting ahead of as we look toward the november election. kevin: i think that is a great point, especially through the prism of how the intelligence community is working with the political front. it is a patchwork across this country. local elections are different from state elections, from federal elections. does that lead to confusion at the ballot box, not for voters, but for how to count these votes? jamil: i think the main issue is how to get the states to work together with one another and to work better with the federal government to protect the votes when the big election comes up in november. we know the russians are targeting it. we have heard the chinese might be looking to get involved also. what we have to do -- individual state run the elections, as they always have. the problem is individual states do not have the wherewithal just like a single company does not have the wherewithal to defend against nationstates attacks. what you have to do is bring the states together to share information and collaborate on defense. at work with the federal government to defend the nation when it comes to the elections. kevin: i want to read a headline crossing the bloomberg terminal. the iowa democratic party to release most of the iowa caucus tuesday.y 4:00 p.m. on the iowa democratic party to release most of the results in just about five hours from now. that according to the iowa democratic party, the headline crossing the terminal. they said this morning they wanted to get these results out as quickly and efficiently and accu i am struck by this, because that is just a few ahead of president trump state of the union address. iowais not the caucus organizers had hoped for, is it? jamil: that is exactly right. they had hoped to get the results out last night as they have done for the last 30 years. ,t is a black eye for the party they are obviously very unhappy. they will try to get these out as fast as possible. they want to be accurate. the last thing they want is questions within the party about who was the winner, what does that mean for new hampshire and south carolina. it is still highly contested primary season. they are looking against a tough general election opponent, coming off what appears to be an impeachment victory. they want to get this right. they ought not rush to it. if they can get it right by 4:00, that is fine. but i think we will see -- we already saw the buying campaign putting out a letter about the results of the votes. we will see what is to come, especially if biden does not perform as well as they might. kevin: republican should be watching this. if it can happen to democrats, it could also happen to republicans. jamil: there's not a lot of competition for the nomination, but going forward this will be a big issue, whether it is the presidential election in this caucus or the primaries in new hampshire or later on primaries. the issue with ensuring we have ballots and elections are not fair or seem to be fair is a critically important issue. it is an issue in 2016. it is the cause of electoral challenges in our political system. if we have these problems going forward, we will need to get them cleaned up otherwise it will cause washington and our government -- that may be good if you do not want the government regulating, but it may be bad if you want the government doing things that cannot do efficiently. kevin: jamil jaffer, former senior advisor to the house intelligence committee. i appreciate that perspective. breaking news. president trump is weighing an exit to the wto $1.7 trillion pact for government contracts. that is according to a person familiar with the matter. more headlines as they, in. this is "balance of power" on bloomberg television and radio. ♪ kevin: this is "balance of power" on bloomberg television and radio. i am kevin cirilli. now it is time for the stock of the hour. tesla is continuing its search. the stock is up 15%, adding onto yesterday's 20% gain. kailey leinz has more. kailey: the only way to describe tesla's move is parabolic. the stock has doubled in 2020. it has only been a month and it has already doubled in valuation. a lot of this may be short covering. it was a heavily shorted stock. you also have continued optimism after its blowout quarterly report as well as the opening of the factory in shanghai. there is a lot of momentum behind this. if you were to look at the relative strength index, it tells us whether the stock is overbought or oversold. right now tesla is 93 on the rsi, that is seen of gilly overbought, even more overbought in 2017.oin was tesla's value is $160 billion. that is far greater than ford and gm combined. it has left volkswagen in the dust. in terms of market valuation, it is only behind toyota in terms of global automakers. the thing i want to focus on is if you were to take the nasdaq 100 as a guide, that index trades at a price to earnings multiple of 28 on average. if you were to apply that to tesla, that would mean the current valuation would have to have a net profitiof which thes not. kevin: thank you to kailey leinz. up next, a number of countries bracing for the spread of the coronavirus is growing. the u.k. is encouraging all british citizens to leave china such -- shuts its casinos for half a month. ons is "balance of power" bloomberg television and radio. ♪ kevin: this is "balance of power" on bloomberg television and radio. i'm kevin cirilli. here in des moines, iowa. for first word news, we go to mark crumpton in new york. isk: the european union rejecting president trump's proposal for securing peace in the middle east. the eu is also raising concerns about israel's plans to annex more palestinian land. by trump's plan was welcomed israeli prime minister benjamin netanyahu, but the palestinian authority mahmoud abbas insisted it is nonsense. wanty says it doesn't trouble with russia. speaking to reporters on his flight back from ukraine, president erdogan says there is no need for the nations engage in a confrontation. he added turkey has no plan to step back from its s400 missile defense purchase from russia. prosecutors say former pimco ceo douglas hodge should go to prison for his role in the college admissions scandal. they are asking for a two-year sentence. he admitted paying bribes of more than $625,000 for getting his children into the university of southern california and torched on university. he'll be sentenced on friday. there have been a number of developments in the coronavirus outbreak. a date has been reported in hong kong, only the second fatality outside of mainland china. there, the death toll has risen to at least 425. beijing is reporting there are more than 20,000 confirmed cases. the u.s. says it is retained for a possible pandemic. -- preparing for a possible pandemic. global news 24 hours a day, on-air, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. thank you, mark. i want to stick with the coronavirus. joining us from hong kong with the latest response to the outbreak is yvonne man. thank you for joining us. what is the latest in terms of how officials are reacting to prevent this from spreading? yvonne: it seems in the last 48 hours we have seen hong kong increase those travel restrictions, have shut on all but three of the border checkpoints around the city. firstk mentioned, the reported death in the city, marking the second death outside of china. when we have learned from this case, this was a 39-year-old man who had an underlying health condition. he traveled to wuhan and returned back to hong kong and showed symptoms. reportedly, during that visit in wuhan, he didn't visit any wet markets are a health care facility, so there are concerns now of this threat of local transmissions, which is something we've been talking about for some time. as we've been talking about, the death toll and the cases continue to shoot up. mark mentioned at least 425 debts, at least 20,000 cases. we see businesses as well shutting down. macau is asking their casino operators to shut down for the next two weeks, which would be significant. 2018haven't done so since 18 when there was that big typhoon. cathay pacific also cutting 90% of their flights to china. kevin: that's exactly where i want to pick things up. my sources in d.c. say this is having a real impact on the u.s. and china trade relationship, and other countries trading with china. ah, and you could say it is adding more strained to the u.s. china relationship, given the response. they banned entry of nonresident travelers from china. that was significant, given the refrain from who adding any travel restrictions on trade and travel. , they haves eyes accused the u.s. of spreading panic in light of this issue. been just the u.s. that has implemented these travel restrictions. we have seen it across the globe as well. way, it may hurt the trait the glaciations going forward in one way. ofin: definitely added a lot volatility to the market, but also how trade officials like secretary mnuchin are able to negotiate with these officials. chart, 20,642 the confirmed cases, and at least 425 deaths now as a result of this particular outbreak. mention about how they are pushing back, about how the u.s. is communicating about this coronavirus outbreak from the worldwide standpoint, but what are they actually doing to prevent this in china from spreading? yvonne: they have done some pretty drastic measures already. of course, the lockdown in wuhan 23, thenanuary expanding to surrounding cities. about 50alking million-plus people being quarantined. in lujan, that hospital they were building, it was built in 10 days, and has 1000 beds. that will help to relieve some of the medical workers and the staff right now trying to work throughout this crisis. have seen those measures, we have also talked about how china has issued a temporary ban on trading wildlife. not a permanent ban, but certainly a significant given the suspected source of this disease was through these wet markets. -- who also talking about perhaps in good news here -- that at this point the virus has not caused a pandemic, i'll know you mentioned the u.s. is preparing for one. they say it has not shown much rotation yet. of infectedber cases continue to go up, but also the number of people that have recovered, that is in the hundreds. about 500 or so people that have recovered from this disease as well. certainly, some good news on that front. yvonne man, thank you so much for getting us up to speed. your reporting has been so incredibly important for the storyline. i'm anticipating president trump will address the coronavirus in his state of the union tonight. now let's get a check on the markets with abigail doolittle. abigail: we have the bulls rushing back into stocks, after last week's big slide on run a virus fears. -- coronavirus fears. the thought that it could impact the global economy as well as the u.s. corporate outlook. today and yesterday, investors one back in on stocks. the s&p 500 up 1.7%. the dow transports have slid because of the airlines, transportation aspect of that index, the idea that it could be hit more on a possible clampdown on world travel. china,lso sensitive to bouncing back up 3%. all of this confirmed that investors don't want bonds for a second day in a row. haven bonds selling off. since the real news of the differents, a bit of news. they declined for the major averages in the u.s., but shanghai composite, down 9% over the last two weeks, heading for its worst quarter now since december of 2018, that is true for the dow transportation index. the possibility that travel could be shut off to some degree on a global basis and hurt some of the stocks in that index. its worst quarter since december 2018. the s&p 500 is bouncing back to some degree but overall still down since the coronavirus fears erected. take a look at oil, another market to track around coronavirus. oil was up 3% at the highs today, after a 50% decline over the last two weeks -- 15% decline over the last two weeks. right now up 1%. key, lesss, very liquid than stocks. china is the world's largest user of natural resources, so a key towel on a market barometer on the coronavirus and what it could mean for the economy. finally, some big movers in the u.s., tesla up 17%, more than doubling this year. a bit of a short squeeze as the bears are getting out. other stocks that have been done recently related to the coronavirus, american airlines, wynn resorts, but today a nice bounce back. the bulls in charge. kevin: abigail doolittle, thank you for the update. tune in for our special coverage of president trump's state of the union address starting at 9:00 eastern time. next week, be sure to tune in or the coverage of our new hampshire primary. that kicks off at 8:00 on tuesday. i'm kevin cirilli. this is "balance of power" on bloomberg television and radio. ♪ kevin: this is "balance of power" on bloomberg television and radio. i'm kevin cirilli. now joining me to break down the latest headline as it relates to the iowa caucus is the former political editor of the des moines register. headline crossing the bloomberg terminal that says the iowa democratic party has announced, we will get most of the results of the iowa caucus in just over four hours. 4:00 p.m. central, 5:00 new york time. we will get results a couple hours before the state of the union. >> yes. that is rough. live and breathe for these numbers. the fact is, the campaigns have already gone on to new hampshire. this is really devastating for the iowa democratic party and for all of iowa. i defend the caucuses every four years. i love fights for its first in the nation status. i firmly believe it should continue to fight, but something has to change. there are options. some of which i have a wanted to try this year but the dnc said no. one of those was to have telephonic virtual caucuses, where people could phone income of the absentee. it was mostly to address the accessibility issues. they address that partially by having the satellite caucuses. the reporting issue may have been easier with people phoning in and making their selections on their phones. the dnc sent me are worried that could be had. the democrats could go toward what the republicans do, which is to have a simple straw poll at their caucuses. kevin: i hear this, i'm putting myself outside of our political bottled -- bubble. it almost doesn't make sense, that a process this complex, voting who you want to be the nominee for your party is this complex, and this unsecure. , rightfully so, the iowa democratic party is getting a lot of questions, but this could have happened to any community, any state, no? there'si don't think been any evidence that the process was not secure. they are talking about a glitch in the reporting app. data is good, the reporting is the problem. i don't think there's any real question at this stage that there was a security breach. kevin: i didn't mean to suggest as much, but in terms of the viability. but i hear you. kathie: the process is complex. this process was never designed for today's instant information media environment. this is a slow process, you talk to your neighbors. it is supposed to take a couple hours. the reporting is really secondary. kevin: let's talk about policy. this is a major economic boon for the state of iowa. to lose the first in the nation status, it would be big. kathie: it is not about the money. what it is about is the influence of iowa. there are a lot of costs. kevin: let's talk about the influence. ethanol industry. this is an opportunity to really talk to these candidates. kathie: it is more than just special interests. it's about having the person in the white house understand the state, the people here. policies that come down the pike that hurt s, the white house is more likely to listen to what we have to say. it's about access, influence. money is a side issue. usmca, the china trade deal, should the democrats or anyone candidate or party avoid iowa, what does that say about that party or campaign's notion about the importance of states like iowa? kathie: one of the arguments for states like iowa is candidates have to learn about these issues in the heartland. they can just campaign on the coast, by buying millions of dollars worth of ads. they have to get to know the their issues, talk to regular people on the ground. they have to be able to answer questions from regular people on the ground, not just the media. those skills translate to other states. learn it here because the process is slow, slow, grassroots oriented, and then they can take the two other states. kevin: we were talking before we came on air about how we interact in four years ago. every four years, you see somebody that you met in the caucus before. i remember the last cycle, just how anticipated that des moines register poll was. hows this illustration of funky this caucus was. that poll never came out. what happened? glitch, they was a did not feel like they could be confident in the numbers. they chose integrity over putting something out. in the democratic party, everyone is waiting for the numbers. they are choosing integrity, making sure they get it right, over satisfying the need of getting the information out sooner. in both cases, the party and the des moines register made the right decision, but incredibly hard. at the register, there was a minor glitch at a call center, and they could not stand behind the numbers. kevin: i was talking about this earlier on the program, you will see sticking around for radio as well, but we were talking about this past 72 hours. we have this, state of the union. this has been a momentous year already and it is barely february. with the impeachment, the caucuses, everything going on. write foration that i is only five weeks old. iowa capital dispatch. you are going to stick around for me for bloomberg radio. we will have complete coverage later this afternoon as we get them. of course, the state of the union. i'm kevin cirilli. this is "balance of power" on bloomberg television and radio. ♪