Wearing, sanitation, ventilation, separation, we are not going to get a handle on this to be able to fully open our economy and our schools in our society. That is what has been ignored by the administration. That is what we must insist upon in this package. It has been another bills but they have not acted upon the resources in a way science would demand. That said come on the subject of the airlines, ive made the case to my colleagues this is a special case because in order for airline employees to return to the workforce, there are National Security concerns, there are concerns about certification and all the rest of that, not somebody leaving a job and coming back to a job, but having to qualified could take a couple of years for a pilot, six months for a flight attendant, six i think we should pay special attention to that. We should not do that and lose all leverage to do Everything Else we have in the bill, which is to crush the virus, honor our heroes, put money in the pockets of the American People, and i have confidence when we are having the conversation with the secretary and we are exchanging paper, it is for a purpose. David are you speaking to the secretary directly . There are reports he raised the possibility of a broader stimulus deal even at this late stage. Are you speaking with him directly. Has he not spoken with you . Rep. Pelosi i had that inference drawn from our conversation, mostly simply last evening late in the day yesterday. Always hopeful. When we are at the table, i said we are at the table. We are not leaving the table. This has to happen. We it cannot happen are legislating. That means we are writing words and need to have the acceptance of the fact we must crush the virus. We have amendments to the words. Show us what that is. They have recognized and not responded to that important part of how we go forward. There is a national plan. It is strategic, it is funded, and it is what we must do according to what the scientists tell us is necessary to crush the virus. It also has funding for vaccines, which would be very important. We hope and pray we have one as soon as possible, not one day sooner than it is safe and efficacious, not one day later. Hopefully that is soon because that is an answer, but for that to happen people have to have trust it was done scientifically, not politically. David in the past you said you do not think President Trump has to be in on the negotiations because you can work with secretary mnuchin. President trump has changed his position quite a bit. You still have confidence, not in them is a person, the secretary, but does he have the ability to speak for the president . It is hard to do a deal if the person you are dealing with does not have the authority to close it. Rep. Pelosi i believe has the authority to do so. The president is in an altered state right now. I do not know how to answer for his behavior. It does not mean we would not try to narrow the difference. A lot of work has gone into it. He would not have committed all of that time time is everything. It is life. We are trying to save lives. We are not going to be enablers of more people dying because we walk away from the table, we are there. Weope we will be there and have no alternative but to work with the secretary. He understands the challenges. Money, a difference in but the difference in language is something we can resolve. It will take compromise, but that is what negotiation is about. I have confidence in the secretary. The president does, too. I cannot answer for the president s behavior. David you talk about the altered state of the president , as you call it, and said the public needs to know the Health Condition of the president. Do you have questions about his capability to serve in his office at this point . Rep. Pelosi what i want to know is the trust we have to place in the executive branch at this time, the trust we have to place in a vaccine that may become , that is if it is scientifically approved, the Clinical Trials as well as the advisory committee, and it is not political. I do not know the motivation of the white house is strictly based on science, they demonstrated in this coronavirus as well as Climate Change and any other issue they have contempt for science. What i said about the president ihat we do not know have quoted others to say there are those who say when you are on steroids and you have covid19 or both, that there may be some impairment of judgment. That is for the doctors and the scientists to determine. Surprising,strange, and i am rarely surprised, when the president took to a tweet and saying he wants the senate to have full focus on the confirmation of the justice and turned attention away, so we are stopping the negotiation. He will do anything in his power to overturn the Affordable Care act, to take away the preexisting condition benefit and all the other benefits contained in the Affordable Care act. We know that. For him to stop the negotiations in order to make the confirmation as fast as possible , for someone to be there for the november 10 oral arguments in the Supreme Court to overturn the Affordable Care act at a time of the pandemic. David i want to come back to something you speak you mentioned which is the situation with the airline industry. You do agree it has to be handled separately, but it has to be part of an overall deal. It does not have to be one bill. It might be possible to do something more quickly for the airlines as long as you have agreement on the rest . Rep. Pelosi let me be clear. We want to help the airline workers. We want to help the airline workers. There is legislation we had in the cares act that we hoped we could continue for another six months or so. Oft expired the end september. Separately, but we cannot do that unless there is a big bill. It can be part of a big bill or could be separate from a big bill from a timing standpoint, but if there will not there will not be anything unless we have crush the virus, put money in the pockets of the American People. , and this is what we are told over and over again, the fiscal soundness of the state and local government is important to the soundness of our economy. We are a consumer economy. Putting money in the pockets of the American Workers immediately injects demand into the economy and creates jobs. It is a stimulus. We have a tall order to do. None of it can thrive unless we crush the virus. The president seems to be thinking the vaccine will come along. That is still months away. People will die. We have a plan. We have a plan. Lets get it done. It is not just about more money into the oval office for the president to have at his discretion with no commitment to the science. I am always optimistic. I see everything as an opportunity. Maybe the president seeing the reaction to his walking away from the table is the opportunity we have for him to go back to the table for us to get an agreement. The sooner the better. The president says he wants to wait until after he wins the election. From here to eternity. Even if he were to win the people dying,s peoples lives depend on it. Our economy success depends on it. Our children flourishing in schools depends upon it. This is a tall order for us. People say you will not solve all of the worlds problems in one bill. I know that. This is krone centric, that is what it is this is coronacentric. That is what it is. We will not solidify disparities in communities of disco we will not solidify disparities in communities of color. Wayre going to do so in a that is fair, and we do the vaccine, which i hope is soon, we will do so with ethics and equity in how it is distributed so nobody feels it was just there for those who are wealthy or live in a red state, but there for all americans. As i say that, prayerfully hoping it will be soon. Science, safety and its efficacy. I salute our science for what they are doing in that regard. David you have been abundantly clear that the priority is to crush the virus, and you need the broad stimulus to get that done. Is it your impression or understanding that right now the priorities of the president of the United States and the white house are different from that, that he is more concerned with confirming judge barrett then he is with crushing the virus . Rep. Pelosi that is what he said yesterday. That is what he said yesterday. Not only that, that is what he has been saying this is not a priority for him, starting from the beginning when he said it was a hoax, it was magically going to disappear. It is going to be a miracle. I think a miracle is science. I think science is an answer to our prayers. There is nothing in the president s past behavior that indicates he has the respect or recommendations that scientists have universally proposed to end the spread of the virus. You. thank appreciate your time as always. Speaker of the house nancy pelosi. Thanks to our extra Radio Audience joining us on bloomberg cable. Thank you for joining us. Coming up, frank luntz on who won the Vice President ial debate last night. Ons is balance of power Bloomberg Television and radio. Harris the Vice President of the president were informed about the nature of the pandemic. They knew what was happening and they did not tell you. Pence when i look at their plan that talks about a testing, a vaccine, it looks a little bit about plagiarism. Senator harris respect the American People when you tell the truth and have the purge to speak when you have the purge the courage to speak to people things they do not want to hear. Pence we will have a vaccine and less than a year. If a vaccine emerges during the trump administration, i think is in unconscionable. Two viceat was the president ial candidates mixing it up on the coronavirus in a different debate then we saw between the candidates for president. In the end, we want to know who won. For preliminary reading, there is no one better to ask that question then frank luntz, who specializes in realtime focus groups. He is back with us for what he learned last night. Thank you for being here. You have results and they were a little surprising to me. Frank lets compare the second debate with the first debate, when everybody felt the American People lost. Donald trump lost the most, but neither president ial candidate lived up to what we would have hoped for in this discussion. Turning to the Vice President ial debate, if it was about the language used where the issues , the, both candidates evaluation from the undecided participants was that they both did pretty well. They both articulated their positions effectively. What was the tiebreaker is how they performed as people, how they presented themselves, whether they were president ial or not. On that, it was almost unanimously they chose mike pence. They watch the faceless prussians, the reactions by the california they watched the facial expression, the reactions by the california senator, and compare that to the tired looking Vice President , capable and unflappable. They thought senator harris try to get under his skin and they fail and they thought he held his own when she came after him. That is why they felt in terms of who won the debate, they would say mike pence overwhelmingly. I think youll find that in the surveys. Just as they felt joe biden one the first debate, for some of the same reasons. In the first debate it was trumps behavior of the public reacted negatively to. In the second debate, the Vice President ial debate, was senator harriss behavior that undecided voters reacted negatively to. David i find that fascinating. Did they react i thought Vice President pence went over time a fair amount, talked of the moderator, would interrupt, things like that. Did they react to that . They did not find that amiss . Frank yes they did. Good for you. Things the public does respond to that. They expect a president ial candidate or Vice President ial candidate to play by the rules, to stick to the time and not go over again and again. That was back. That was bad. The expressions and what i call worse. Ing was all i need to do is take you back to the gore bush debates of 2000, the sign in the complaining about poor during the debates and the complaining of al gore during the debates, how that affected people negatively. It is 20 years later and they still feel that way. A certain to pour them from the candidates a certain decorum and she did not live up to it. Now the news is it does not look like we are going to have a debate as we plan to on the 15th. The Commission Says it should be virtual, President Trump says he will not do that. What is the consequence if we do not have a debate . Who does that help or hurt . Frank lets make some news. I do not see how donald trump catches joe biden without having does go debates. He is far enough behind it enough states he will need two direct encounters to compare his mission to the Vice President s mission, to compare trumps policies to joe bidens policies. Without that debate, i cannot do the math to take him to where he needs to be if he expects to win this election. I think it was an unwise decision, i am honestly privately expecting him to reverse that decision, as he himself does the math. He is trying to pressure the Debate Commission, who will not be pressured. I know them. They are decent and committed to the democratic process. I think trump, if he goes through with this, just determine who wins in 2020. David are there enough undecided voters left to make a difference . Frank that is the whole point. But in my group there were several people i wish i not participated because you start to ask them questions by the way, the polls have it at 10 . My pulling has it at 6 . What i truly believe it is probably 3 of america, that is not enough without a couple more debate for trump to close the gap. David fascinating. Always such a delight to have you on these things. That is frank luntz, pollster and founder of luntz global. We will take a special look at some of the swing states already covered in our series, this one focusing on arizona, north carolina, and ohio. It will air friday evening at 9 30 eastern and again throughout the weekend. We turn to Mark Crumpton for first word news. Mark six people have been arrested and what the fbi says was a plot to kidnap michigan governor gretchen whitmer. Official said the alleged conspiracy involved recruiting michigan militia as part of a plan to overthrow the state government. Gretchen whitmer, once considered of pop eight top contender as joe bidens running mate, has become a target of some conservatives, who said her statewide orders to wear masks violated their constitutional rights. It is looking less and less likely there will be a debate next week between President Trump and joe biden. The president is refusing to take part after the commission that runs the debate says the event would be virtual. Joe biden says he will take questions directly from voters october 15, and is asking the Debate Commission to move the debate to october 22. The president says a virtual faceoff is not what debating is about. Joe biden says the president is trying to evade accountability and does not want to face questions about his failures on covid and the economy. The president says talks on a new stimulus package have been productive. Mr. Trump told foxbusiness negotiations are starting to work out. Mr. Trump rolled his team out of the talks abruptly on tuesday. He then asked for standalone assistance bills for airlines and individual stimulus checks. Nancy pelosi and Steven Mnuchin spoke yesterday about an Airline Relief bill. Indonesia turned violent as thousands of students and workers criticized a new law they say will cripple labor rights and harm the environment. Clashes between rockthrowing demonstrators and bride police broke out near jakarta. The demonstrators say the law will hurt workers reducing severance pay and moving restrictions on manual labor by Foreign Workers and increasing the use of outsourcing. 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. David this is balance of power on Bloomberg Television and radio. Ibm announced a big structural change, announcing he would separate its hybrid cloud we talked with ceeo Arvind Krishna about what the move entails. Arvind both the announcement, ibm will become over half is a software and solutions company, and a larger number in terms of overall product, and if we look at the energy business, a little over 50 . That is a very Attractive Company that promises a different valuation than the current structure. That is a piece of it, but i think it is more the growth in the Market Opportunity of 1 trillion that i think is driving it. You are closer to that audience than i am in terms of how to think and how they react. David will be the relationship between these companies . Will they be free to contract with other people who might even be a competitor of their Sister Company . Arvind both. Absolutely. Both companies will be allowed to partner with those will be competitors. Certainly with vehicles. Others were competitors of the aggregate may feel reluctant to partner with them. That gets unlocked. No constraints, no restrictions on that side. That said, i think it is likely we are each others biggest customers on day one. They certainly purchase a lot of hardware and software from ibm, ibm certainly purchases services in terms of how we run i. T. Infrastructure and so on. Two companies will have a deep strategic relationship, but that will not constrain both. David what can you tell us about the leadership of the two companies . Who do you expect us to be the leaders . What about jim waters of red hat . Arvind both jim and myself remain with ibm. A lot of the leadership who runs the businesses that ibm will stay ibm. The for Infrastructure Services goes. , theu know, the board governing structure of ibm stays in place because the company is staying in place. We have to create a new board. Once the new board is formed, they will be able to we expect they will select many people from the current management team. As that goes forward, the new board of the company will select with daytoday operations, a lot of the people are in place. They are in Infrastructure Services today and they will continue to do that. David you clearly want to gain growth by freeing up the hybrid services and the ai part of the company. You also run the risk of losing some of crossselling, have companies that can cross sell both sides of your business . Arvind that is a risk that can be managed. The word i would use is i do not have any concerns about it, and that would say of course i will have to work around it and i will mitigate any of the rest in terms of how we work. There are certainly common clients across both sides, but the clients tend to contract separately on a different part of the business already. We have to manage that risk. As i said also, the two businesses will have strategic relationships with each other, that will help mitigate that part of the rest. I think we have unlocked growth youi think there is a risk mentioned can be mitigated. David this is a Big Initiative of ibm. It will take a while to put it together. What you expect the spinoff to be effectuated . Arvind we believe, based on history and others who have done similar spinoffs, it seems to take about a year to get done. A year plus or minus a few months. That takes us into the later part of 2021. We have to get through all of the structural of the new company, we have to file with the sec, we expect that will somewhere early to mid part of next year. You get through all of those approvals, you have to get to final approval board approval. That then allows us to impact all of this. 12 months plus or minus some number of months is probably a good timeline to expect. David you and i both understand that when you have this major structural change, it consumes a lot of executive bandwidth. That probably means you are not looking at other acquisitions or dispositions over the 12month period. Do you see further structural changes coming up for ibm to pursue that relentless desire for growth . Arvind i expect to be completely focused on acquisitions and organic r d and organic ecosystem investment. I dont believe that we will fall in that. We are not planning anything else that is significant. This will take time. You are right, it is major and it must will take a whole set of people to get it done. In the meantime, we are focused on growing both companies, so they will take the appropriate action, whether organic or inorganic acquisitions. Withlly expect to be done all of that. David that was part of my conversation with ibm ceo Arvind Krishna. We continue our look at michigan with a look at the swing state election. We welcome back congresswoman debbie dingell. Give us your sense of where michigan is in this race. Ast time, donald trump got narrow win there. How is it looking this time . Debbie good afternoon, great to be with you. Four years ago, i was one of the lone voices warning people that michigan was more competitive than people thought it was. It is very fluid. Today, im feeling better than i have been a couple of weeks. Began to ago, i almost get the same feelings that i had in 2016, quite frankly. Candidly, the debate, and then the president s handling of himself as he has gotten covid in the last few days, as i have been out several places carefully, you can tell that people are worried. The handling of covid has people thinking long and strong. 26 days away but i think joe biden is in a stronger position than Hillary Clinton was at this time. David is the covid issue looming larger than the concerns about jobs and the economy . I daresay last time President Trump made a real pitch particularly to michigan voters saying you have lost a lot of jobs and i will bring them back. Is covid more important than the jobs issue . Matter,they both deeply but covid is impacting peoples ability to keep their job, have a job. Unemployment is high in michigan, has been higher than it has been at one point, more than one in four people lost their jobs. The democrats didnt really talk about those issues for years ago. The fact is, under this president , we have lost 50,000 jobs in michigan. Plansown district, two eliminated 50,000 jobs. One of the few major steel plants left in this area announced 1500 jobs were laid off. Most people expect it may, unfortunately. People are worried about both. But i want to make it clear, there are still very strong loyal Trump Supporters here. I think recent activity has taken some people and energized the more than they have been. David we had a debate last night. Industry, auto jobs came up. Here is one exchange between Kamala Harris and Vice President pence. Harris joe biden is responsible for saving americas Auto Industry and you voted against it. The president pence American People deserve to know senator harris was one of only 10 people to vote against the usmca. It was a huge win for u. S. Auto workers, huge win for american farmers, especially dairy in the upper midwest. David there you have it, a pretty stark contrast and what these positions mean for the auto industries. How does it play in michigan . Debbie first of all, when you talk about what happened when the Auto Industry was on the verge of total collapse, it was a bipartisan effort. President bush is the person that began the initial saving of it, and the Obama Administration inherited it. Joe biden was a very handson person in protecting that industry. I will never forget what the boat was in congress, one of the most contentious i have heard. Mike pence was from an auto state and voted against i dont like to call it the bailout, but saving the Auto Industry. That is a fact. I was one of those people that strongly believed that we needed and irite nafta, supported trump in saying that it needed to be renegotiated. The fact of the matter is, the first bill that came forward, democrats demanded a lot of inclusions into what we now call nafta 2. 0. Many from the west coast did not support it because they did not think it was strong enough. I believed we needed anything to keephan what we had, jobs from moving overseas, but we need to work on trade policy improvements. That will always be a priority for me and any president or candidate that talks about it will get people sparked. Here in michigan, we have seen too many jobs shipped overseas. 26 days until the election. Say theyt many people are undecided anymore. What can change in the last few days . It looks like right now the debate scheduled for the president ial candidates next meek mill not happen and it is not clear what will happen on the 22nd. What if there are no more debates . Debbie the only thing i know about the year 2020 is that the predictable is the unpredictable. Anything can happen in 26 days. Its a lifetime. You are doing michigan this week. Who would have predicted the fbi would be talking about avoiding a kidnap online governor on my governor. Notpresident says he will participate in a virtual debate, even open to potential change, as he has a tendency to not say the same thing from time to time. Be full of lots of surprises. Only the first week of october and we have seen a lot of things that many of us would not have written in the script. Am somebody who will not believe this election is over until the polls close in california on election day. A lot of things can happen. We have to make sure people can turn out. People can get disgusted, everyone gets tired of partisan bickering, gets turned off by all politics. Everybody has to make sure that the voters turn out. Democracy matters. Both sides are very focused on turning out the vote. David always a privilege to talk with you, debbie dingell, democrat of michigan. We will have a special look at some of the swing states already covered in our series, airing friday at 9 00 eastern, and again through the weekend. For bloomberg first word news, we go to Mark Crumpton. Mark lifting lockdowns will not give the economy a sustained boost as long as covid19 infections remain elevated, according to the imf, which says people will probably keep avoiding social interactions out of fear of contracting the virus. New Research Shows that while government lockdowns contributed significantly to the global recession, the slowdown was also driven in large part by people abiding by social distancing guidelines. Just 28 of americans say they already have or expect to return to workplaces before the end of the year. A new Conference Board survey says nearly one third of respondents said they would be on coco getting back to offices, shops, and factories, while have set the greatest concern was contracting covid19 at work. Only 70 of employees said they were very comfortable or even wanted to return 17 of employees said they were very comfortable or even wanted to return. The taliban is happy with President Trumps announcement to have troops out of afghanistan by christmas. The tweet made no reference to a taliban promise to fight terrorist groups, a previous prerequisite for an american withdrawal. A taliban spokesperson said the president s announcement was welcome and a positive step. 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. With coming up, dealing an economic crisis through the lens of Public Health. Cecelia routes gives us her prescription. This is balance of power on Bloomberg Television and radio. On and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. All accounts, the economic rebound is slowing down. We have a long way to go before we reach full recovery. Like the events that gave us the recession to begin with, its all about dealing with the pandemic. Of theome Cecilia Rouse Princeton University dean school of Public Affairs. Thank you for being with us. Give us your take on where the economy is, how far we have to go to get back, and what we have to do with the coronavirus to get there. Is ina our economy crisis because of the coronavirus crisis. I am not a Public Health official, i have read what you all have read, but we understand this is a very Infectious Disease in the best way to keep people safe, keep or tell down is to flatten the curve, implement physical distancing to stay safe. What that fundamentally means in economic terms is we have to stop engaging with one another, which means we have to have a slowdown in Economic Activity. Of thee are in terms economy is completely a consequence of the virus. Where are we . Employmentcent report which came out last week, which tells us about september, tells us that the economy, on a planet rate has fallen from where it had been, now 7. 9 , but contrast that to the Unemployment Rate of 3. 5 in february. This is not an economy and employment rate that we think is something to celebrate. It is still relatively high. If we were in normal Economic Times and this were a normal economic problem, wed be with thinking of this as a recession. Underneath that decrease in the Unemployment Rate were some worrying trends. In the laborease force participation rate. That means an increasing number of people are not even counted among the unemployed because they have given up looking for work. I want to highlight that even among that growing number of people that have withdrawn from the labor force is a large number that would like to be working but they dont think there are any jobs due to the pandemic. They are not being counted. It would be much higher if we counted them as unemployed. In addition, we see the longterm unemployed is increasing. People who are unemployed have been unemployed for longer. We saw a little bit of job growth in leisure and hospitality, restaurants, food services. But i think that is largely because of the warm weather, especially in colder climes. I am here in princeton, new jersey. Restaurants have been able to serve outdoors, we have indoor dining, too, but as it gets colder, they will not have as much activity. David as we look around the country and the world, we are seeing some resurgence is of covid19. Is it because we have opened up too far, too fast . Cecilia i think that is some of what is happening. Again, im not a Public Health expert, but we have always been warned there could be a second wave. Some of that is likely because we are relaxing our own physical distancing. Lets face it, we have to learn to live with this virus until we completely conquer it with a really effective set of therapeutics. Until we get to the other side, we will be taking some risk. I think we need to do that. It is very hard to stay sheltered in place for a year and a half. I am not an Infectious Disease expert but they did warn us a second wave could occur. David you are not an Infectious Disease expert but you are an economist. As you look at economies around the world, can you see any correlation between economy doing better because they did a better job on Public Health . Cecilia we see the on up limit rates in particular are not as high as the United States. Some of this is the way that countries try to compensate people to get through this economic crisis caused by the health crisis. I do believe economies that have kept it better under control have been able to do things such as getting children back to school. When children can go to school with appropriate safety measures, then their parents can work. One of the other phenomena we have seen is women withdrawn from the labor force at very high numbers because somebody needs to be home to take care of the children who are not able to go to school in person. If we look around the world, countries that have the virus better under control have not been suffering as much as we have. The reality is until we have this behind us, everyone will be suffering. David im glad you raised the issue about women participating in the workforce. Largely, they take care of the children. Some difference in the gender between the two. About how this has hit some of those harder, whether africanamericans, hispanics, or women . Im sorry, see my dog. This virus has exacerbated the inequality that already existed in our economy. Ourebruary, when this hit, Unemployment Rate was 3. 5 . Over all it was doing well, but there was inequality, cracks in the system. Not everyone was doing as well as others. This virus has exacerbated those inequalities. Unemployment rates for africanamericans and hispanics and even women have not come done as quickly. To, of it, as you alluded and households, often women are more likely to take care of the children. It may also be that the woman has a lower paid job, so when the decisionmaking is made about who will stay home to help the kids, she is the want to make that sacrifice. This has exacerbated this inequality. Many of the essential workers are some of our lower paid workers, those delivering our packages, our first responders, they may be working in the police force, emergency rooms. They are delivering our food for those of us that can stay home. They are more at risk, they dont have as much health care, many of them are more vulnerable, living in more precarious housing. So they have really taken the brunt of the pandemic. David we heard from fed chair jay powell who said, to get a full recovery, we need more fiscal stimulus. Anyn economist, is there doubt in your mind that we need more fiscal stimulus . Cecilia i completely agree with chairman powell. I am actually quite stunned that congress has not passed another bill. I like to think of it as relief. In some ways, we dont want to fully stimulate the economy, we want people to be able to be distanced, stay home if they need to, or if there is not a job available, they need to pay their bills. But in paying their bills, that is keeping our economy afloat. If someone is not able to pay rent or buy food, that is money not going back into the economy. We understand these kinds of fiscal stimulus measures, when there is no other Economic Activity, helps to keep the economy afloat. Many people worry, our federal debt and deficit is so high. That is true, but remember there is a denominator. Think about how much federal debt there is compared to the size of the economy. Onpeople are unable to spend rent, food, other essentials, or even things that they just want to spend money on, then our Economic Activity gets smaller and we cannot carry the debt that we have. The fastest way to recover is for the federal government to step in. Interest rates are extremely low. We have critical needs that we will need to eventually take care of. We want to reduce the suffering, help people stay in their homes, buy food, take care of their families, which will have a multiplier effect. David it is great to have you with us. Thank you for your time, dean Cecilia Rouse, dean of the school of Public Affairs at Princeton University. This is balance of power on Bloomberg Television and radio. Elevision and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Time to get a check on the markets. We turned to abigail doolittle. I think we have a new favorite word, jittery. I have heard it more than once in the last few days. Abigail it goes along with uncertainty, and that is what we are seeing with the volatility. A relatively small the move than what we have had over the last few days, but it has been a case of up, down, up. Today we are up about. 7 on the s p 500. Investors really reacting, kneejerk reactions, to the headlines coming out. Today, of course, we had the speaker of the house, who you interviewed earlier today. Say therehat, she did was not going to be a skinny airline stimulus deal unless there is a broader stimulus deal. President trump yesterday said that there are not negotiations, but it seems there are some negotiations here. With stocks trading higher, it seems traders probably think that at some point stimulus will get past. A point to be made around the airline deal, broader stimulus deal. There is a big different between . 5 billion targeted toward one industry and lets just call it 2 trillion. That is in the middle of where the republicans and democrats are for the broader deal, and that is probably why there was a kneejerk reaction to the down and backup. Bonds are rallying, so investors are little bit nervous, even as stocks are higher. David it feels like the equity markets reacted immediately to what nancy pelosi or Steven Mnuchin said, but they dont react much, and it does not stick. They are concerned about stimulus but not that concerned. Abigail i was looking at that just before going on air. Since july 31, the s p is up about 5 . That is when we first saw stimulus put into play. Two and half months since that. So overall, traders are optimistic that something will get done. I would agree, kneejerk reaction but pretty small. And to speaker of the house treasury secretary mnuchin, relatively small. It seems investors and traders have their mindset that stimulus will get done, even if the road is bumpy. David this is balance of power on Bloomberg Television and radio. Mark im Mark Crumpton with bloomberg first word news. The fbi says six people have been arrested and with the bureau says was a plot to kidnap michigan governor gretchen whitmer. Officials say the alleged compared see involved in recruiting michigan militia as a plan to overthrow the state government. Once considered a top contender for joe bidens running mate has become a target of those who say that wear masks is a violation of their constitutional rights. That is according to the International Monetary fund which says people will probably keep avoiding social interactions out of fear for contracting the virus. New imf Research Shows that while government lockdowns contributed significantly to the global recession, the slowdown was also driven in large part by people abiding by social distancing guidelines. It is looking less and less likely that there will be a debate next week between President Trump and joe biden. The president is
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