He had Health Issues in the past that he has managed well during his tenure as Prime Minister. He resigned abruptly the last time he was Prime Minister in 2007 because of his health condition. David he is the longestserving Prime Minister, but he was quite influential. One of the things bloomberg is concerned about is abenomics. He came in with three arrows. Was that a success . Sheila i think it is a mixed bag. I will leave it to the economist to delve into the details. There two details are two pieces of what he did manage to accomplish. One is structural reforms. He and his government were impressive in agricultural reform, one of the structural impediments to participate in the ttp, the regional trade pact. He tried to increase womens participation in the economy. Some people would have liked to see more women, but he managed to make some strides there. Progress in slight the labor market reforms he tackled, but he did not accomplish what the japanese wanted, which is to see their wages increase. It is a mixed bag. The structural side takes time. His legacy will be he tackled bigger issues and got things started. Choice bywas not by shinzo abe. This is a tricky time, not just for japan but for governors around the world. Sheila here it is. I think the coronavirus derails what is a fairly planned out Succession Process by shinzo abe and leaders. Ofonavirus, this may be one the first casualties of the coronavirus that has broad global impact. He wanted to go out on the successful 2020 olympics, which has now been postponed until next year. Of the Economic Performance indicators were in trouble coming into 2021. Gdp was anemic. This has catapulted japan into a very difficult position in terms of longterm economic growth. Of course what is going on in the Global Economy. This is not a time for japan to sit back and watch. Activist japan is required. This must be personally painful for mr. Abe but it also undermines some of his key ambitions of as leader of japan. Japan is sod geopolitically important. It is also located literally as well as figuratively between china and the United States. Sheila therein lies his legacy. He managed to get important legal reforms that would allow japan to militarily respond to some of the geostrategic shift in the region that were not in japans favor. He has gotten a lot on the docket for japans selfdefense forces that another Prime Minister would not have been able to do. It is important to remember he managed the u. S. Japan alliance very successfully through his unprecedented personal approach to donald trump. That is not a small accomplishment for a country like japan that depends so strongly on the United StatesNuclear Deterrent when you have Nuclear China and also a new Nuclear Power in north korea. David one of the hallmarks of mr. Abes leadership was the coordination between the central bank and fiscal policy. ,as that specific to shinzo abe was that mr. Kuroda, or that be likely to continue in your opinion . Sheila i think it is likely to continue. You saw it mr. Kuroda the culmination of a decade of thinking about the roles of Japanese Central bank, and you saw mr. Kuroda try to take the bank of japan as far as he could in terms of quantitative easing. The inflation rate is 80 indicator. What is going on in the Global Economy will be as influential in terms of japans choices and the policy set by the central bank. David demographics play a large role and a shrinking working population cannot be a good thing structurally. Part of the reason to bring women more into the workforce was to address that need. This is the largest challenge over time for japan. Demographics are not deterministic, but they are major factors in longterm growth prospects. One of the pieces of that structural reform package that was difficult was labor market reforms. If you talk to any economist sitting in the Major Institution in tokyo they say you have to free up the impediments to a Global Labor Market in japan and the structure of japanese companies, lifetime employment. Women was one of the pieces of the puzzle. The second piece is immigration. Unless you open up japan to a free flow of workers and laborers across different sectors, if you do not let that kind of market reform take place , then you are going to have an impediment that the demographics will impact heavily. I think the next Prime Minister and the next Prime Minister after that are going to have to deal with this question of labor market reform. David thank you so very much for your time. That is sheila smith with the council on foreign relations. Coming up, the conventions are over, so let the race really begin. We talk with two renowned clinical strategist, rick davis and frank luntz, about what comes next. Ons is balance of power Bloomberg Television and radio. President trump in a new term as president , we will again build the greatest economy in history, quickly returning to full employment, soaring incomes , and record prosperity. Biden this is a lifechanging election. This will determine what america will look like for a long time. Characters on the ballot. Compassion is on the ballot. Decency, science, democracy. Vice president pence, where we fought for free and fair trade and this president stood up to been and joe biden has a cheerleader for communist china. Do betterrris we can and deserve so much more. We must elect a president who will bring something different, something better, and do the important work. We saw a stark contrast between democrats and republicans you got a taste of. For an initial take on where the sharp differences will take us in the selection, we welcome Bloomberg Contributor rick davis who has been with us each step of the way through the two convention weeks. You cannot have a bigger difference between these two parties and what they have said, but i wonder how it will resonate with the American People and what is uppermost in their mind. A lot of them are very anxious about where we are economically and with the virus. Which approach will appeal to them more . Rick both of them were talking to one group that is the same and their base. Each candidate did their best to fire up their base. They gave them the red meat they needed. Both did a good job at that. All four candidates did their part to fire up their base. Everybody was focused on white suburban voters as the swing group in this campaign. Joe biden more on those swing whors in the suburbs abandoned donald trump in 2018, and donald trump, who is trying to get some of those back in his speech. A lot of that resonates around the crime issue. Donald trump taking the point of view of law and order, and the Joe Biden Campaign taking the point of view we need to solve the social justice problems wracking our country and pulling it apart. Each of them had a different approach, but they were all targeting the same group. David my question is do we have any sense of where the American People are . Will give you two facts when it comes to law and order, people tend to trust republicans more. When it comes to dealing with the coronavirus, people tend to trust the democrats more. Rick i do not think that is debatable. The question is what are they willing to vote for . Neither candidate gave the same targeted voters particularly good prescriptions for the future. On the case of covid and the solutions for that, donald trump popped as if it was in the rearview mirror. When joe biden addressed it he said it was his number one priority the first day in office and he would create a mast mandate. Is that a solution everyone is working on or is it just reinforcing the notion that one party represents a health party and the other the law and order party . The reality is nobody knows how those suburban splits will happen or how articulate the rest of the campaign will be in fighting things, whether his economics, health care, covid, law and order that will then pull them in the direction of the campaign. A lot of targeted states make the difference of who wins those states. David it is such a pleasure to have you with us. That is rick davis, our bloomberg political contributor. Throughout his career, frank luntz has been the man campaigns in the media turn to to understand the american electorate through interpretation of polls and his focus groups. We welcome him back to bloomberg. Frank, thanks for being with us. Lets pick up with where we were with rick davis. Often elections are as much about the people and where the people are as they are about the candidates. You have a sense of where the American People are right now . Frank yes. They have to make a tough choice. You have 94 of the country, that is a lot, who have made up their minds and they will not change. You have 6 who are truly undecided. This will be a battle between joe bidens agenda and Donald Trumps persona. All you will hear from trump over the next 65 days is why joe biden is too leftwing, socialist, or anarchist, which is the first time we heard that word last night. Willthe Biden Campaign you hear donald trump is a horrible person, he has been a horrible leader, they will attack him for his character traits. You will have two separate focal points of the campaign. One person will be talking policy, the other will be talking character and attributes. I cannot tell you which side the American People choose. David how critical is it to joe biden he find a way to respond to donald trump. There is no question donald trump is a great puncher. The question in my mind is joe biden a good counterpunch or . Since youre doing a boxing analogy on can think of is muhammad ali and George Foreman. Muhammad ali took blow after blow after blow for round after round, tiring out George Foreman , and finally he drops warm and because foremen cannot fight back anymore. He drops George Foreman because George Foreman cannot fight back anymore. I think the key to this is women , married, with schoolage children, who are more concerned about the health and safety of their families than they are with reopening schools and the economy. They are the ones most likely to be undecided. Theyre the ones who do not like either candidate. Those are the people who these timid should be focused on. Who these candidates should be focused on. Up to this point, the character and attributes of a candidate have mattered more. This election may be different because we have a health care crisis, we have a covid crisis, and economic crisis, and a social justice crisis. We have never gone into an election with 70 challenges in the last 50 years. Just maybe this time, policy will trump persona personality. David when you talk about the health and safety of those married women with children, does that make potentially incidents like we have seen in kenosha, wisconsin, before that minneapolis. Does that make that more potentially important on election day . Frank youre correct. The problem with the president is when he talks about joe biden saying nothing, that is powerful. When donald trump communicates law and order, law and order to the average american is a policeman hitting a protester over the head with a stick. That is not with the public wants. They support these protests and they support the police and they oppose defunding the police, but they want police reforms. For trump, it should be called public safety. Dominating the streets, which is trumps language, is not with the public wants. They want safe streets. The problem with the Trump Campaign is it is over caffeinated. They are focusing on the right issues that these swing voters want to hear about, but they are using the wrong language. Andd is ancient history therefore probably irrelevant, but is there an analogy to 1968 when we had the riots and Richard Nixon used it to good effect . Frank he had a 25 point eight coming out of the two convictions conventions. On election day, nixon won by less than 1 . Hubert humphrey was able to convey to the public that he had empathy and heart. I believe with the American People want now is a hub. They got that from Melania Trump and ivanka trump, not from donald trump. You have two messages the republicans are using. They are not in competition but they are not necessarily on a parallel track. David youre such an expert when it comes to polls. One of the things we have talked about is how soon do we start to look at the polls. Maybe too early right now. When will it be time to pay attention, in which polls will you be focused on . Frank i do this every single day. Once you get within 100 days it is close enough. Over the labor day weekend, traditionally, is when a lot of americans make up their decision. ,hey decide about the economy about the past, present, and future. I would tune in about labor day. The poll i uses real clear politics, which is a poll of polls. What i do is throughout the pole that is most positive for the is mosts, the poll that positive for the republicans, and then i do an average. One more thing, we do not win or lose based on popular vote, we win or lose based on the electoral college. Four years ago and over the last few months, donald trump does about two points better in those swing states that he does nationally. Trump could lose the National Vote by 3 or 4 and still win the election. David it worked for him in 2016. Is that his strategy as far as you can tell . Frank it may be his strategy, but obviously the Biden Campaign will not make the same mistakes as Hillary Clinton. Joe biden is not as controversial as Hillary Clinton was. I am glad you raised that. The challenge for biden is if he starts talking about policy, then he loses the progressives in a state like michigan or wisconsin. If he moves too much to the center, he loses to the left. If he moves too much to the left to win those progressives in a state like florida, then he loses people on the right. Is about, the more personality, the better he does. For trump, the more it is about issues, the better trump does. David thanks. To see you in addition to hearing you. Great to have you. That is frank luntz. We turned to Mark Crumpton for bloomberg first word news. Mark residents across the gulf coast are cleaning up and taking stock of the devastation today. Hurricane lara, the most intense storm to hit the northwestern gulf coast since 1856 will result in as much as 12 billion worth of damage to real estate. That is according to estimates from corelogic. Laura has been downgraded to a tropical depression moving through arkansas overnight. President trump heads to New Hampshire tonight after accepting the republican nomination for president. Mr. Trump narrowly lost New Hampshire to Hillary Clinton in 2016. He is trailing joe biden in opinion polls in New Hampshire and nationwide. The president plans to travel extensively in the coming months to boost momentum for his reelection bid. Warning herl is country that the coronavirus pandemic will get worse before it gets better. In our annual summer address, she said the fallout will test germanys finances for months, if not years to come. While Angela Merkel has been praised for her handling of the pandemic, cracks have started to appear. She has struggled to get state leaders aligned on response measures as infection rate surge. The European Union is urging turkey to stop its drilling activities in contested waters in the mediterranean. The eu is also trying to speed up sanctions against turkish officials involved in energy exploration. Tensions are growing between turkey and greece over turkeys Drilling Work near the mediterranean island of cyprus, which light breeze is an eu member country. 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. Bloomberg. David this is balance of power on Bloomberg Television and radio. I am david westin. While we have been focused on the convention, the equity markets are reaching new record highs. Scarlet fu is here for an update. Scarlet it is more of the same. That is the message from the Federal Reserve when it comes to lower rates and that is what we are seeing in terms of price action. The s p rising for a seventh straight day. The dollar weakening versus g10 currencies. Treasury bouncing back from yesterday selloff, but the fiveyear part of the yield curve is steepening and gold is rising on the feds willingness to tolerate higher inflation ripples across asset classes. Oldschool tech is leading the most. Hp and western digital, which makes hard drives, are rising on increased demand for remote work and school. I mentioned the ecodata. Readings on personal income and spending our topping estimates. That is helping to lift cruise ship operators, airlines, resorts, we also have good news on floridas count case continuing to slow down. David ecodata trumps conventional data. At the same time markets do not like uncertainty. This looks like a pretty uncertain election. Scarlet absolutely. Youve been talking about that with your guests. The range of possibilities is endless. You could have extended counting , a blue sweep, a red sweep, the vix has been grinding lower since march but these are vix futures contract and they show a lot of anxiety. The october futures contract, the white line, is higher than september and november. The october reflects expectations for volatility from october 21 to november 21. This covers the election. The spread between the october contracts and the other contract are higher than the past three president ial elections. A lot could happen. I suppose investors are bracing themselves for any kind of scenario. David including it might not be over november 3. We may be counting mailin ballots until december. Thank you so much to scarlet fu for that report. Up next, President Trump talked a lot about what he has done for american jobs, particularly in the Manufacturing Sector. Nick pinchuk of snapon tools is here to give us a report from the factory floor. He is the person who employs those who President Trump cares about so much. That is coming up next on balance of power on Bloomberg Television and radio. Hike coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions. Touchdown only mahomes. Expect anything different . The big events are back and xfinity is your home for the return of live sports. David this is balance of power on Bloomberg Television and radio. Im david westin. Nightent trump last emphasized his record on creating jobs, especially for africanamericans and hispanic americans, and especially in the Manufacturing Sector and said it was largely because of his aggressive trade policies. We talk to someone who runs one of those factories, in the foul ground state of wisconsin no less. Nick pinchuk is the chairman and ceo of snapon. Since you are in kenosha, we have to ask, how is it going, give us a report on how things stand. Nick i am sitting in kenosha right now. These things take on a different tone when you are here. Small town, connected. Traumatized byn the events. The tragic killing on sunday, the horrible killing the last couple of days, the burnings, firebombings, looting. Trauma across the whole community, but we love this town, we are committed to this town, snapon is. We know the people here. Y are hardworking, pit capable, dedicated. Have been the wellspring at snapon energy for 90 years. One of the positive things that comes out of this is that the embers are still glowing and the people in this town are meeting and talking about trying to write the wrongs, remediate, recover, try to restore and build for the future. This is an encouraging thing. It speak to the great people here but also talks about the american spirit, the kinds of things that you need to deal with hurricanes like laura, where we have franchisees in the way, or a fire on the west coast, or any number of other tragedies or setbacks, or even covid, which we are dealing with , to create an economy against the wind in this withering of this great ancient people. David are people willing to make fundamental change . Nick i think so. People are looking at it in terms of, what can they do differently . But also remember, when your can seeburned, and you the smoke, and you worry about being set that, people all over our thinking about that. Trauma is the best way to think about that. There is a hurting but there is an idea that they want to restore. These are salt of the earth people here. As i said, they have been the wellspring of our energy for so long. That is my we are committed to being here. We will make change and come back. Have something called the pandemic going on, we have a recession. How is the snapon business going through this pandemic . Nick let me step back and Say Something about the pandemic. When i hear about the tv, i hear people talk about the recession through the lens of a downturn, recession, but it is not like that. If you look at those recessions, from the factory floor, our parent garages, over one million technicians, factories all over, they look at those recessions that have been brought upon them by wall street. Some kind of inning medic process wrote them down. They dont really know when it will come back. But this downturn is different. Downturn five something we can identify. People are just waiting for the all clear to be able to deal with things so that they can move backwards. What we are seeing in the snapon business, the downturn playing out in three phases. First, the shock. Wow. I was on bloomberg actually in early march. Then i was at a Milwaukee Bucks game, 18,000 people in the arena, i spoke to people in a ballroom the next day. A few days later, people are calling for shelterinplace. Our franchisees and customers and technician didnt know what to do. They while, they parked, didnt know what to do with their customers. Little by little, you could see the accommodation role across the nation. Thisest way to think about Everybody Knows about our va ns. They started out in april, deep in the doldrums, but they accommodated. They pursued their essential task, importing this economy that we love, society that we hold so dear, and bear the risks. We say fear is the destroyer of reason. We will meet fear with vigilance. So by the end of the quarter, they were within a few percent of last years number. You can see that accommodation coming forward. One of the cool things about this, we may see a second or third wave, but we will not get shocked again. David we just had a viewer write in and say, these people are salt of the earth meaning it as a compliment but will people be able to go forward with their business, make orders , if they are not confident that we have our arms on the coronavirus . Nick that is a psychological recovery. I dont know if you feel the same way, but we dont know when it will end, but i think it will keep Getting Better because that is what we see. Yes, maybe a little bit reluctant to make longterm investment until they get confidence, but you today, each week, each month they get better. Our approach to the business is like this we will maintain our strength. We will keep investing in product. We are going to keep supporting our brand. This is one of the greatest brands in the world and we will keep working on it. We have worked hard to maintain our Franchisee Network and our Customer Base by extending credit to them through the shock period. We are by that now and we are going to maintain our people. We think the snapon people are a great advantage, capable, energetic. We have not laid off anybody. What we see coming out of the other side of the recession is people are going to drive more. They will not want to depend on shared transportation. They may not want to get on the subways in new york. They may even want to move out of the city, and that will be more driving. When we come out of the recession, and we can see it in shanghai and beijing, people are driving more, we can see that we want our product, brand, our franchisees, customers, and most of all, our people at full strength. David it is pretty clear, snapon and your people are pretty resilient. We heard from President Trump last night about what role he may have had in this. Did President Trump have a substantial role in helping you, particularly in his harsh trade policies . Nick trade has kind of faded away in importance with covid. But we were all trying to get a better deal, level Playing Field out of china. It is one of the greatest markets and American Companies want to take advantage. There were things about intellectual property, leveling the Playing Field with state owned enterprises, and so on. Manufacturers felt, how is that going to change . By asking nicely . So therefore, a little more aggressive policy that President Trump talked about was a good thing. We were very encouraged by the siding last december. Of course, we are further encouraged by the calls that were made and moving forward. We will see how it plays out. But tariffs are something that you manage. Like currency or hurricane events, or even covid. It is our job to manage over these things. This forhe promise of the trade policies in the future, if we get a level Playing Field in china, it is not the immediate effect. Notady, manufacturers are affected by it today. The thing that any president can do that is positive is talk about the actual working men and women, the makers and fixers. Today, if you think about it, you buy a roll of toilet paper in the grocery store. That is delivered by a truck driver, manufactured by a guy in a factory. They cannot work from home. The makers and fixers are the essential people that have kept our society from disintegrating in this period. One other thing about it, i dont think they have gotten the respect. Money,ne thing to give it is one thing to train them, and we trained them. Than 2500 schools supporting this kind of technical training. Kinds ofle view these jobs, truck drivers, mechanics, as being the consolation prize of society, when in fact, this covid has highlighted they are american heroes. President s of any stripe can celebrate that. Then that makes our economy stronger and brings us back, particularly in manufacturing. Tonic,you are a positive no question about it. Nick pinchuk, the snapon ceo. For bloomberg first word news, we go to Mark Crumpton. Mark annex tradition hearing for a 17yearold murder suspect in illinois has been delayed. A judge has postponed Kyle Rittenhouses hearing until september 25. Rittenhouse is accused of killing two protesters and wounding a third during protests over the Police Shooting in kenosha, wisconsin. The teenager, who is being charged and as an adult in wisconsin, faces five lome charges including firstdegree intentional homicide and firstdegree reckless homicide which carries a mandatory life sentence. Capping a week of protests and outrage over the Police Shooting of jacob blake in wisconsin, civil rights advocates are gathering in washington to commemorate the 1963 washington march on washington for jobs and freedom. You are looking at a live picture. There is Martin Luther king jr. The third. Thousands are expected at the steps of the Lincoln Memorial where dr. King levered his historic i have a dream address. Whosev. Al sharpton, organization helped to plan todays events, have assembled the families of black men and women who have died at the hands of police or ordinary citizens. Taylor,loyd, Breonna Ahmaud arbery, eric garner, blake, and others. Calling, shinzo abe is it quits. The longestserving Prime Minister in japans history is resigning to undergo treatment for chronic illness. Sinces been in office 2012. His liberal Democratic Party will pick the next minister. Abe is best known for the program known as abenomics, designed to revive the japanese economy. Sure itsants to make citizens can get a Coronavirus Vaccine as quickly as possible. The u. K. Is changing its laws to allow the emergency use of any safe and effective vaccine before it is fully licensed. The approval process typically takes months. Britain says this is a per cautionary measure and would only be used as a last resort. Thanountry has had more 41,000 covid19 deaths, the highest toll in europe. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. David thank you so much. Coming up, we have been paying a lot of attention to politics the last two weeks, but for the markets, its all about the fed. We get an update from our International Policy correspondent Michael Mckee. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Both the republicans and democrats have been talking a lot about what they would do for the economy, but so far it appears to be what the Federal Reserve that is driving the markets, including speculation about whether it may be closer to giving us Forward Guidance on rates, something that Robert Kaplan told our Michael Mckee today is not all that necessary, at least not yet. It is possible it will take a while to get to 2 . Disruption inbled particular are limiting the Pricing Power of businesses, and inflation has been new did for close to 10 years. Now michaellcome mckee. What Robert Kaplan was talking about was not Forward Guidance but whether they could get to 2 . A really terrific interview today. Mike he did say that he didnt think it was time to do Forward Guidance because the economy is still expanding, although at a slower pace. That is the feds concern right now. Pretty much everyone agrees that what you need to do first is control the virus, then you can get people back outspending. We saw that in the data that came out today. Up,me and spending are both but not by a lot, and its been slowing as we have moved to the summer. This is july data. June, we opened up and saw some gains, but now we have seen a fallback. In july, Unemployment Compensation fell 7. 2 . In august, losing that extra 600, we will see incomes drop even further, which is more of a problem for adding the economy going. David at the same time, it is not going as fast as before, but i thought he said some of the highfrequency data was taking back up again. We saw a real decline from july into august. He said mobility data, restaurant reservations were starting to move up again. Of course, he is the central banker in charge of the houston area, one of the hardest hit cities, texas one of the hardest hit states in july, so things are Getting Better. Data point that came out today, the university of michigan sentiment, still rather silly strong, unlike the confidence born data. But you can see there is a big difference depending on what party you belong to. If you look at the far righthand side, while everyone thought things were bad in the early part, it has jumped up a little more for republicans. David two different countries, even when we look at the economy. Much more on the economy tonight on wall street week. Coming up here, more on my conversation with home depot cofounder ken langone. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Investor, philanthropist, home depot cofounder. Ken langone is an unapologetic capitalist. When i talked with him, he emphasized it was not just capitalism that works, but what he calls responsible capitalism. Ken it is happening right now. Sound, solid Business People are going to come to that conclusion. I am bragging about home depot. I have a reason to brag. Quarter, we gave 680 million to our gotciates, fulltime people as much depending on their years they got 12 weeks with pay. They can take the money or they can take the time off. Felt thatople if they they were at risk, they did not come in. We restricted the number of people that could shop in our stores at one time. We have cut store hours. Where we had stores, where we had a high rate of absenteeism, we shut the stores and only allowed for online purchasing. These were all decisions that we made that negatively impacted the bottom line. By the way, that 680 million does not include our success sharing in the program where we have a bonus every six months for each store based on their plan. S relative to that didnt also include store manager bonuses. Again, that is secret to our culture. Sacred to our culture. We did that for two reasons. He could have made more money if we didnt do it, cap stores open. Service would have been bad, but more importantly, our associates and our customers, their risk would have been higher. We took the position that we will do what is right for people, our customers, our associates. Are not complaining, but the point is, we didnt maximize profits. A program where, in the last five years, i believe, we gave somewhere between 250 million and 500 million to various programs. We did that for one reason, it is the right to do. We live amidst these veterans. Many of them are our customers. We made a decision. Had lunch with store managers the other day. Peoplere talking about imitating what we do. He said something that made me feel good. He said the one thing that will be hard to copy is our culture. Look at our results, look at the low turnover of our people. Look at how competitive we are with salaries. Look at the benefit plans we have. Eli lilly did the same thing. Johnson johnson, the same thing. 3m. Google. Microsoft. Amazon. Have made major efforts to share their good fortune with their people, and with societies in which they live and work. We are not back to the old robber barons. We are not back to let them eat cake. That is gone. For a lot of companies, it is not. But to enlighten, forwardlooking companies, they are doing the right thing. Not just some people, but everybody. Those companies that choose to be a modern, vibrant business are making these decisions. And it is for the betterment of everyone. David in your experience, over time and there are always exceptions do nice guys and gals finish first in the Business World . Do we need the government to encourage this kind of behavior, or will it take its own course, and will it spread because it leads to success . Ken based on history, anything the government touches, it screws up. Let the laws of supply and demand home depot does all of these things because it is part of our values. But as we take a step back wow, look at what we did. For example, one of our tenants nobody works for us, they work with us. That is a mindset. The new kid that starts today, he works with us, not for us. We work collectively with the customer. Today, the proudest statistic of all. By the way,ds i say, if you are under 84, you are a kid. I will be 85 the month. We have 3000 kids that started with us pushing carts in the parking lot. Of my that was part interview with ken langone, home depot cofounder. Balance of power continues on bloomberg radio. We will be talking with Richard Trumka and carly fee arena fiorina. This is balance of power on Bloomberg Television and radio. From new york city for our viewers worldwide, im taylor riggs. Bloomberg real yield starts right now. Jay powell paving the way for a lower for longer era. Driving yield curves even steeper after reaching its widest level in two months. And sparking a rally in high yield with the lowest rated bonds leading the way. We begin with the big issue, investors debating the market implications of a policy shift at the fed. Interestr to be hiking rates is so high. Low rates will be with us for longer. This is an important shift. May be more evolution than total revolution. The fed wants a steeper yield curve. We have gotten steeper in the last week. People are seeking that extra yield