Transcripts For BLOOMBERG Bloomberg Markets Balance Of Power

Since the beginning of september. As investors try to move toward the Health Care Part of the economy, it is creating choppy trading action as we can see with todays mixed action similar to yesterdays big move, lots of volatility. David we have all been fixated with the election, and some with covid19 and the vaccine. You pointed out something that happened in august that may be having ripple effects in the equity markets right now. It seems as though the surface issues, the very important issues, the election and the virus, a huge issue that can change the field. It seems that what we are seeing is a repricing of risk. In august, the feds policy framework shift back in august ,eeping rates lower for longer especially the short end of the curve, but putting the sentiment towards the idea of inflation or healthier economy, that has steepened the yield curve tremendously, again a repricing of risk. This is healthy, but when the yield curve steepens it does cause lots of different Asset Classes to move and is also causing a piece of the sector rotation. As long as this yield curve continues to steepen, right now at its highest levels since 2017, 2018. Goldman sachs saying 2021 will be all about yield curve steepening. It could stay messy for longer than we expect. Stay tuned for more volatility. David thank you so much Abigail Doolittle. It is not just the equity markets that are hesitating. We also have a transition. We have president elect biden moving forward with the transition. It will address the nation today on the Affordable Care act. He is pressing forward with the transition. At the same time President Trump keeps tweeting he will still win this election with the help of a lot of lawyers. For a read on what is going on we welcome bloombergs chief content officer marty schenker. Where are we on this transition . Normally we know by this point. Marty this transition, from joes standpoint is going ahead, even though transitions usually require another side to transition from and there are no signs of any formal transition activity happening. There may be informal activity. David the formal activity takes the place of the administrative General Services administration turning over the keys to offices as well as to money and to open up access. Is there any legal constraint on this woman to actually do that work and she wait until the Electoral College votes december 14 . Marty she could technically wait until the actual state certified their Election Results and turn them over. She could wait until then. That will not happen for a couple of weeks. She is under pressure to declare joe biden as president elect, but so far she does not seem to be budging. She is an appointee of donald trump but she is a career Civil Servant and it remains to be seen if she will do that with the pressure from all sides. David she has the ultimate boss in President Trump who is not settle in signaling what he think should happen. He keeps talking about the lawsuit and had the attorney general he said he did not intervene with the attorney general. His attorney general said it is ok for various u. S. Attorneys to investigate possible voting irregularities without going through the normal channels. What significance does that have . Marty we are trying to figure that out. Bill barr has taken a number of stances, launched investigations after donald trump has criticized the russian investigation, and so far, those investigations have gone nowhere. What bill barr may be playing is a careful game of placating donald trump while not actually producing any results, and it gives him cover. Maybe he is thinking about his legacy. It does give him cover to seem to be doing Donald Trumps bidding without actually having any impact. Precise, as iore read with the attorney general had to say, he said it is ok to investigate this but we will not pursue any frivolous ones. That seems to be one of the big gaps. As much as we hear about accusations of irregularities, there has been little real evidence of any specific instances. Fraud there is no evidence being presented in any of these cases that would overturn the results. Joe biden is ahead by over 100,000 votes in michigan. Even if there was fraud, it might involve hundreds of votes, not hundreds of thousands. It does not seem to be going anywhere. David what might the practical effect of this be. Lets assume the transition does happen but it is delayed. There is not that much time between the inauguration. How much of a disadvantage does that put a Biden Administration at . Biden i would say if joe was a nonpolitician or inexperienced in government, it might have a very significant impact, but he had spent eight years in the government. He has contacts over all over the deep state as we like to call it coming i would suspect they are Informal Communications going on that will give him at least a fair chance at hitting the ground running when he becomes president in january. David always great to get your perspective. That is marty schenker, our chief content officer. Ising up, the Supreme Court deciding whether throughout the Affordable Care act. We get the legal and health care on that next. Power onalance of Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. We turn to Mark Crumpton for bloomberg first word news. Mark President Trump is continuing to fight the results of the election. On twitter the president wrote we will win. He added results will start to come in next week. Mr. Trump has Senate Majority leader Mitch Mcconnell in his corner. Leader mcconnell says the president is within his rights and has no obligation to accept projections based on vote counts that joe biden won the election. Mitch mcconnell has been reelected and will lead Senate Republicans during the next section of congress in january. Chuck schumer will return to his role as the senates top democrat. The question of which man will be the majority leader remains open. Republicans hold a 53 to 47 seat majority in the chamber. After last weeks elections they will likely be left with 50 seats to 48 for democrats pending final race calls in North Carolina and alaska ga. Is posing arm eta threat to oil and natural Gas Production in the gulf of mexico as it gets ready to make a second landfall on the florida coast. The floridadfall in keys is the record 12 storm to hit the u. S. In a single year. Further to the east, subtropical storm theta has become the recordbreaking 29th system of 2020. Two key Supreme Court justices signaled they are not prepared to strike down the entire Affordable Care act. Chief Justice John Roberts and Justice Brett kavanaugh both said they were inclined to leave the rest of the law intact, even of challenges succeeded in invalidating the individual mandate, which requires people to acquire insurance. The Trump Administration has argued the law, known as obamacare, is unconstitutional. David westin will have more on this story in moments. 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 thank you so much. We did have arguments in the Supreme Court on the Affordable Care act, whether it should all be struck down. We welcome our colleague Lydia Wheeler of Bloomberg Government to recount exactly what happened in those oral arguments. Thank you for joining us. The reports are we have some indication they would be able to sever the part of the individual mandate from the rest of the statute. Lydia thats right. Thanks for having me. During arguments, it seemed like two key justices have indicated they were inclined to uphold the Affordable Care act and cut out that one unconstitutional provision, which is the individual mandate, which requires everyone to Purchase Health insurance or pay a penalty. David everybody is fixated on the newest justest on the bench on the newest justest on the bench, amy coney barrett. There was a lot of talk how she could be key in the Affordable Care act. Did we hear anything . Lydia during her Senate Confirmation hearings she set the presumption should rely on severability, so she would think the individual mandate should be severed from the rest of the law. Today she asked what the court should make of the fact that the 2017 Congress Drop the tax penalty to zero but did not actually invalidate or repeal the mandate. It seems like she clearly thinks the individual mandate is no longer constitutional, but seems unclear whether she thinks it should be severed or not. David give us a sense, it is always dangerous to judge where the court is going from oracle arguments. There were signals given, sometimes the signals are right, sometimes they are misleading. What is the time horizon . Lydia we are not expecting a decision until june, and probably not until the end of june. The Supreme Court tends to save the best cases for last am especially cases that are highly controversial. I am not expecting a decision until june in this case. David thank you so much. That is Bloomberg Governments Lydia Wheeler on the Supreme Court hearing of the Affordable Care act case accurate it sounds like they may not throw the whole statute out but what would be in state if they did, if the obamacare case led to the end of obamacare. We welcome dr. Mark mcclellan, founding director of the duke center for Public Policy and also former commission of the fda. Thank you for being with us. It looks like that may not be where the court is headed. For a moment, spend time telling us if they did throw the entire thing out, what would that mean . How Many Americans would be losing their Health Coverage . Dr. Mcclellan with the cap yacht, you said it is unclear with the caveat is unclear they will throw anything beyond the mandate or the standing for the states to bring the case they were harmed by this provision, it could have a large effect. The Affordable Care act not only thated Obamacare Exchanges now provide insurance for millions of americans. It also provided a guaranteed issue and Community Ratings rules that keep people from having to pay more if they have preexisting conditions. It created additional benefits in medicare such as better drug coverage and created a lot of innovative ways of improving medicare and other health care coverage, as well as expansions of the Medicaid Program that affects millions more individuals. It has become part of the fabric of American Health care, which is yet another reason it is unlikely to be fully overturned. David this is one thing i do not understand. Not being an expert at all. Was the health care enacted, my understanding is the individual mandate was thought to be critically important to make sure we had enough people signing up to make it economically possible. They took away the congress because, they took away the penalty because Congress Said you do not have to pay money. Can we drop that out and have the rest of it work . Economically . Has had anan it important impact on part of the market. We got a lot of Different Health care markets in the united states. For people over 65 there is medicare. For low income individuals, especially children and families, there is medicaid. Then people have private insurance through their employers. That provision was most important for the exchanges where people who do not have coverage from their jobs can choose between different plans. The idea was that if healthier people did not sign up for the exchanges come if they did not have coverage through their job, that would mean higher premiums and a less healthy mix of people in those exchange plans. This gets complicated. Plans in theved is exchanges that are fairly expensive because they have a healthy mix of participants, but most of the people who are signing up have big subsidies under obamacare. I do not see much of that cost directly. The people who are most impacted or have relatively higher incomes do not have coverage for their jobs, do not get subsidies if they want to buy insurance on the Obamacare Exchanges. That is partly why president elect biden has talked about providing more subsidies to higher income individuals in the exchanges, but also why it would be good for congress to take a closer look to see if they can make these markets function better and cheaper. David that is what i would like to focus on. Most democrats and republicans have said there is room for improvement of obamacare. What would be an improvement come and talk about the public option, which is something president elect biden embraced, as opposed to medicare for all. Dr. Mcclellan a public option ld give people who are in potentially a bit younger than current eligibility for medicare , 65 data 60 or lower, the option of getting into a public plan. Advocates for this approach argue it would be less expensive and more stable than other alternatives. Controversialvely and has been criticized by republicans and others who want more privately driven Health Care System as potentially andupting the private plans restricting access and innovation. That will be a tough one to get through the early days of the administration that is likely to have a closely divided congress. Maybe some easier steps are incremental improvements in the obamacare markets. Open enrollment, enrollment, better steps to help people who cannot get coverage, and steps to directly address the high prices people in high insurance plans are paying today and to help get costs by get costs down by taking the inefficiencies out of the system. We have heard a lot during the pandemic about how many conditions it is possible to get telehealth. There are more efficient ways of delivering. Digital technology. More emphasis on those kinds of invasions to get improve access during the early part of the administration. David you pointed out that it looks like President Biden will have to deal with the divided congress. The senate will have a majority of republicans. The question becomes of the things you just mentioned, things like changing the Enrollment Period, how much can the executive branch due on its own as opposed to going to congress and say we have to amend things . President trump try to get rid of the Affordable Care act. He cannot get that done himself. Up acclellan putting special Enrollment Period for people whove been affected by covid, although there are already steps to allow people who use who lose their coverage to enroll. Perhaps they take other administrative steps to make the exchanges work a little bit better from a standpoint of a cough for people who have not very big subsidies but have to play high premium. There is a lot the administration can do working with republicans on a bipartisan approach to bring prices down. Outofnetwork charges, lack of transparency, payments more closely linked to Better Outcomes and lower overall costs of care. All of those things could have Administration Action to support them as well as more potential for bipartisan action. David just briefly, i have to ask you about the vaccine. How excited were you when you heard that . Dr. Mcclellan very good news. If it plays out, it means we could have a quite effective vaccine start to be available by late this year. It will be some months before lots and lots of people get vaccinated enough to where we can stop the steps we are implementing now to slow down the spread like masks and distancing. Other vaccines that are coming have similar mechanisms, so it is a good time for them. A manmade version of anybodys that could be given to people at high risk soon after they are infected also help neutralize the virus and prevent hospitalization. That could start providing benefits to people and lowering our hospitalization rates, which are soaring right now. Could start providing help right away. We still have months to go but these are definitely good news. So much to dr. U mark mcclellan. Still ahead, we will talk to the former michigan governor rick scott are, a republican who endorsed president elect biden. Snyder, a republican who endorsed president elect biden. Ons is balance of power Health Care Part<\/a> of the economy, it is creating choppy trading action as we can see with todays mixed action similar to yesterdays big move, lots of volatility. David we have all been fixated with the election, and some with covid19 and the vaccine. You pointed out something that happened in august that may be having ripple effects in the equity markets right now. It seems as though the surface issues, the very important issues, the election and the virus, a huge issue that can change the field. It seems that what we are seeing is a repricing of risk. In august, the feds policy framework shift back in august ,eeping rates lower for longer especially the short end of the curve, but putting the sentiment towards the idea of inflation or healthier economy, that has steepened the yield curve tremendously, again a repricing of risk. This is healthy, but when the yield curve steepens it does cause lots of different Asset Classes<\/a> to move and is also causing a piece of the sector rotation. As long as this yield curve continues to steepen, right now at its highest levels since 2017, 2018. Goldman sachs saying 2021 will be all about yield curve steepening. It could stay messy for longer than we expect. Stay tuned for more volatility. David thank you so much Abigail Doolittle<\/a>. It is not just the equity markets that are hesitating. We also have a transition. We have president elect biden moving forward with the transition. It will address the nation today on the Affordable Care<\/a> act. He is pressing forward with the transition. At the same time President Trump<\/a> keeps tweeting he will still win this election with the help of a lot of lawyers. For a read on what is going on we welcome bloombergs chief content officer marty schenker. Where are we on this transition . Normally we know by this point. Marty this transition, from joes standpoint is going ahead, even though transitions usually require another side to transition from and there are no signs of any formal transition activity happening. There may be informal activity. David the formal activity takes the place of the administrative General Services<\/a> administration turning over the keys to offices as well as to money and to open up access. Is there any legal constraint on this woman to actually do that work and she wait until the Electoral College<\/a> votes december 14 . Marty she could technically wait until the actual state certified their Election Results<\/a> and turn them over. She could wait until then. That will not happen for a couple of weeks. She is under pressure to declare joe biden as president elect, but so far she does not seem to be budging. She is an appointee of donald trump but she is a career Civil Servant<\/a> and it remains to be seen if she will do that with the pressure from all sides. David she has the ultimate boss in President Trump<\/a> who is not settle in signaling what he think should happen. He keeps talking about the lawsuit and had the attorney general he said he did not intervene with the attorney general. His attorney general said it is ok for various u. S. Attorneys to investigate possible voting irregularities without going through the normal channels. What significance does that have . Marty we are trying to figure that out. Bill barr has taken a number of stances, launched investigations after donald trump has criticized the russian investigation, and so far, those investigations have gone nowhere. What bill barr may be playing is a careful game of placating donald trump while not actually producing any results, and it gives him cover. Maybe he is thinking about his legacy. It does give him cover to seem to be doing Donald Trumps<\/a> bidding without actually having any impact. Precise, as iore read with the attorney general had to say, he said it is ok to investigate this but we will not pursue any frivolous ones. That seems to be one of the big gaps. As much as we hear about accusations of irregularities, there has been little real evidence of any specific instances. Fraud there is no evidence being presented in any of these cases that would overturn the results. Joe biden is ahead by over 100,000 votes in michigan. Even if there was fraud, it might involve hundreds of votes, not hundreds of thousands. It does not seem to be going anywhere. David what might the practical effect of this be. Lets assume the transition does happen but it is delayed. There is not that much time between the inauguration. How much of a disadvantage does that put a Biden Administration<\/a> at . Biden i would say if joe was a nonpolitician or inexperienced in government, it might have a very significant impact, but he had spent eight years in the government. He has contacts over all over the deep state as we like to call it coming i would suspect they are Informal Communications<\/a> going on that will give him at least a fair chance at hitting the ground running when he becomes president in january. David always great to get your perspective. That is marty schenker, our chief content officer. Ising up, the Supreme Court<\/a> deciding whether throughout the Affordable Care<\/a> act. We get the legal and health care on that next. Power onalance of Bloomberg Television<\/a> and radio. David this is balance of power on Bloomberg Television<\/a> and radio. We turn to Mark Crumpton<\/a> for bloomberg first word news. Mark President Trump<\/a> is continuing to fight the results of the election. On twitter the president wrote we will win. He added results will start to come in next week. Mr. Trump has Senate Majority<\/a> leader Mitch Mcconnell<\/a> in his corner. Leader mcconnell says the president is within his rights and has no obligation to accept projections based on vote counts that joe biden won the election. Mitch mcconnell has been reelected and will lead Senate Republicans<\/a> during the next section of congress in january. Chuck schumer will return to his role as the senates top democrat. The question of which man will be the majority leader remains open. Republicans hold a 53 to 47 seat majority in the chamber. After last weeks elections they will likely be left with 50 seats to 48 for democrats pending final race calls in North Carolina<\/a> and alaska ga. Is posing arm eta threat to oil and natural Gas Production<\/a> in the gulf of mexico as it gets ready to make a second landfall on the florida coast. The floridadfall in keys is the record 12 storm to hit the u. S. In a single year. Further to the east, subtropical storm theta has become the recordbreaking 29th system of 2020. Two key Supreme Court<\/a> justices signaled they are not prepared to strike down the entire Affordable Care<\/a> act. Chief Justice John Roberts<\/a> and Justice Brett<\/a> kavanaugh both said they were inclined to leave the rest of the law intact, even of challenges succeeded in invalidating the individual mandate, which requires people to acquire insurance. The Trump Administration<\/a> has argued the law, known as obamacare, is unconstitutional. David westin will have more on this story in moments. 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<\/a>. This is bloomberg. David thank you so much. We did have arguments in the Supreme Court<\/a> on the Affordable Care<\/a> act, whether it should all be struck down. We welcome our colleague Lydia Wheeler<\/a> of Bloomberg Government<\/a> to recount exactly what happened in those oral arguments. Thank you for joining us. The reports are we have some indication they would be able to sever the part of the individual mandate from the rest of the statute. Lydia thats right. Thanks for having me. During arguments, it seemed like two key justices have indicated they were inclined to uphold the Affordable Care<\/a> act and cut out that one unconstitutional provision, which is the individual mandate, which requires everyone to Purchase Health<\/a> insurance or pay a penalty. David everybody is fixated on the newest justest on the bench on the newest justest on the bench, amy coney barrett. There was a lot of talk how she could be key in the Affordable Care<\/a> act. Did we hear anything . Lydia during her Senate Confirmation<\/a> hearings she set the presumption should rely on severability, so she would think the individual mandate should be severed from the rest of the law. Today she asked what the court should make of the fact that the 2017 Congress Drop<\/a> the tax penalty to zero but did not actually invalidate or repeal the mandate. It seems like she clearly thinks the individual mandate is no longer constitutional, but seems unclear whether she thinks it should be severed or not. David give us a sense, it is always dangerous to judge where the court is going from oracle arguments. There were signals given, sometimes the signals are right, sometimes they are misleading. What is the time horizon . Lydia we are not expecting a decision until june, and probably not until the end of june. The Supreme Court<\/a> tends to save the best cases for last am especially cases that are highly controversial. I am not expecting a decision until june in this case. David thank you so much. That is Bloomberg Government<\/a>s Lydia Wheeler<\/a> on the Supreme Court<\/a> hearing of the Affordable Care<\/a> act case accurate it sounds like they may not throw the whole statute out but what would be in state if they did, if the obamacare case led to the end of obamacare. We welcome dr. Mark mcclellan, founding director of the duke center for Public Policy<\/a> and also former commission of the fda. Thank you for being with us. It looks like that may not be where the court is headed. For a moment, spend time telling us if they did throw the entire thing out, what would that mean . How Many Americans<\/a> would be losing their Health Coverage<\/a> . Dr. Mcclellan with the cap yacht, you said it is unclear with the caveat is unclear they will throw anything beyond the mandate or the standing for the states to bring the case they were harmed by this provision, it could have a large effect. The Affordable Care<\/a> act not only thated Obamacare Exchanges<\/a> now provide insurance for millions of americans. It also provided a guaranteed issue and Community Ratings<\/a> rules that keep people from having to pay more if they have preexisting conditions. It created additional benefits in medicare such as better drug coverage and created a lot of innovative ways of improving medicare and other health care coverage, as well as expansions of the Medicaid Program<\/a> that affects millions more individuals. It has become part of the fabric of American Health<\/a> care, which is yet another reason it is unlikely to be fully overturned. David this is one thing i do not understand. Not being an expert at all. Was the health care enacted, my understanding is the individual mandate was thought to be critically important to make sure we had enough people signing up to make it economically possible. They took away the congress because, they took away the penalty because Congress Said<\/a> you do not have to pay money. Can we drop that out and have the rest of it work . Economically . Has had anan it important impact on part of the market. We got a lot of Different Health<\/a> care markets in the united states. For people over 65 there is medicare. For low income individuals, especially children and families, there is medicaid. Then people have private insurance through their employers. That provision was most important for the exchanges where people who do not have coverage from their jobs can choose between different plans. The idea was that if healthier people did not sign up for the exchanges come if they did not have coverage through their job, that would mean higher premiums and a less healthy mix of people in those exchange plans. This gets complicated. Plans in theved is exchanges that are fairly expensive because they have a healthy mix of participants, but most of the people who are signing up have big subsidies under obamacare. I do not see much of that cost directly. The people who are most impacted or have relatively higher incomes do not have coverage for their jobs, do not get subsidies if they want to buy insurance on the Obamacare Exchanges<\/a>. That is partly why president elect biden has talked about providing more subsidies to higher income individuals in the exchanges, but also why it would be good for congress to take a closer look to see if they can make these markets function better and cheaper. David that is what i would like to focus on. Most democrats and republicans have said there is room for improvement of obamacare. What would be an improvement come and talk about the public option, which is something president elect biden embraced, as opposed to medicare for all. Dr. Mcclellan a public option ld give people who are in potentially a bit younger than current eligibility for medicare , 65 data 60 or lower, the option of getting into a public plan. Advocates for this approach argue it would be less expensive and more stable than other alternatives. Controversialvely and has been criticized by republicans and others who want more privately driven Health Care System<\/a> as potentially andupting the private plans restricting access and innovation. That will be a tough one to get through the early days of the administration that is likely to have a closely divided congress. Maybe some easier steps are incremental improvements in the obamacare markets. Open enrollment, enrollment, better steps to help people who cannot get coverage, and steps to directly address the high prices people in high insurance plans are paying today and to help get costs by get costs down by taking the inefficiencies out of the system. We have heard a lot during the pandemic about how many conditions it is possible to get telehealth. There are more efficient ways of delivering. Digital technology. More emphasis on those kinds of invasions to get improve access during the early part of the administration. David you pointed out that it looks like President Biden<\/a> will have to deal with the divided congress. The senate will have a majority of republicans. The question becomes of the things you just mentioned, things like changing the Enrollment Period<\/a>, how much can the executive branch due on its own as opposed to going to congress and say we have to amend things . President trump try to get rid of the Affordable Care<\/a> act. He cannot get that done himself. Up acclellan putting special Enrollment Period<\/a> for people whove been affected by covid, although there are already steps to allow people who use who lose their coverage to enroll. Perhaps they take other administrative steps to make the exchanges work a little bit better from a standpoint of a cough for people who have not very big subsidies but have to play high premium. There is a lot the administration can do working with republicans on a bipartisan approach to bring prices down. Outofnetwork charges, lack of transparency, payments more closely linked to Better Outcomes<\/a> and lower overall costs of care. All of those things could have Administration Action<\/a> to support them as well as more potential for bipartisan action. David just briefly, i have to ask you about the vaccine. How excited were you when you heard that . Dr. Mcclellan very good news. If it plays out, it means we could have a quite effective vaccine start to be available by late this year. It will be some months before lots and lots of people get vaccinated enough to where we can stop the steps we are implementing now to slow down the spread like masks and distancing. Other vaccines that are coming have similar mechanisms, so it is a good time for them. A manmade version of anybodys that could be given to people at high risk soon after they are infected also help neutralize the virus and prevent hospitalization. That could start providing benefits to people and lowering our hospitalization rates, which are soaring right now. Could start providing help right away. We still have months to go but these are definitely good news. So much to dr. U mark mcclellan. Still ahead, we will talk to the former michigan governor rick scott are, a republican who endorsed president elect biden. Snyder, a republican who endorsed president elect biden. Ons is balance of power Bloomberg Television<\/a> and radio. David this is balance of power on Bloomberg Television<\/a> and radio. Lets get an update on health care. We have the Supreme Court<\/a> challenge to obamacare as well as president elect biden addressing the nation about an hour and a half from right now. Lets get Abigail Doolittle<\/a> to find out where Health Care Stocks<\/a> are. Abigail we are looking at modest gains for health care at this point. The Health Care Index<\/a> of the s p 500 up. 5 . Earlier it had been down. That fits into the choppy are trading we had been talking about earlier. Relative to the challenge to obamacare and the Supreme Court<\/a>, it is interesting. We were talking to one up i was talking to one of our Bloomberg Intelligence<\/a> analysts and he was saying there are really two scenarios, whether or not is ruled unconstitutional or constitutional. We will not know for four to six months. The inclination is to think it will be rolled constitutional so nothing will change. Health care is a huge industry. 18 , inr it was about 2018 it was about 18 of the overall gdp, more than doubling over the last 50 years. No change would perhaps be a good thing for this industry. Basis,. , on a per capita spends far more than other countries on health care. On the other hand, if there is some sort of change around obamacare, our Bloomberg Intelligence<\/a> analyst was telling me that could create tremendous strain for hospitals and managed care. On the year, we are looking at gains for those insurers and the managed care companies. The idea is if not much changes it could be good news for the Health Care Companies<\/a> at this point. David we need to be strong, given the coronavirus. Thanks to Abigail Doolittle<\/a> for that report. Up next, our series on the next four years turns to the future of the Republican Party<\/a> with the former governor from michigan, rick snyder, a republican who supported president elect joe biden. Ons is balance of power Bloomberg Television<\/a> and radio. David this is balance of power on Bloomberg Television<\/a> and radio. Im david westin. With the 2020 election pretty much over, all the litigating, it is time to look at not only when a Biden Administration<\/a> would do but also what President Trump<\/a>s loss would mean for the Republican Party<\/a> over all. Former governor of michigan, republican rick snyder, who served on the Steering Committee<\/a> for republicans and independents for biden. Assuming this goes the way it is clear it will go, what happens to the Republican Party<\/a> post donald trump . Richard i appreciate the question. No one knows for sure but there is an opportunity to get the Republican Party<\/a> back on a more positive path. If you look at it, it became the party of trump. He is the divider in chief in our nation, and it is not constructive for any of us. The challenge is, donald trump will not just go away. The being issue out there that the Republican Party<\/a> needs to look at is how active or inactive is donald trump going to be in terms of continuing to ora bully, dividing people, let us get back to the principles of what the party stands for, which actually came election. L in this state legislatures, house, senate, republican did pretty well, and that was really a repudiation of everything that trump stands for. David it does strike me that although President Trump<\/a> lost, a lot of people with him won. The house of representatives, the senate may remain in the hands of republicans. You didnt have the blue wave that we expected. He got 70 million votes after all, people back him. Richard this is where there is a lot of this information in terms of what biden would present. Lost . E elections won or its about people in the middle. If you look down ballot, republicans still look good. At the top of the ticket, trump didnt look good. Hopefully that sends a message to republicans to say lets look at reforming our party, look at how we can win together. The biggest problem i had with donald trump, he was just taken care of the people that supported him. He didnt think about representing all americans. If you heard president elect bidens message, its about bringing people together, and thats a great asset, whether you are republican or democrat. I am a proud republican. Our message needs to be how we need to win together as americans. People would appreciate that. That is why there are important bipartisan issue that i hope get on the agenda fairly quickly. David the one thing nobody can deny is the level of enthusiasm of Trump Supporters<\/a> for President Trump<\/a>. By the way, the president did a heck of a job out on the stump gathering that support. Can you expand the base without turning off too many of those people that are diehard Trump Supporters<\/a> . Richard i think thats a great question, and i think you can. I dont think its an easy thing to do and will take time. Matter, how do you relate government policy to making someones life better . Ultimately, it is not a lot of the issues that are talked about to any particular person or voter, it is how you make their life better. Right now, we have a lot of people suffering from covid, from the health issues, Economic Issues<\/a>. If we can find Common Ground<\/a> issues between democrats and republicans, we can improve the quality of life. That is how you expand the network of who will be in your base, who will participate. David another thing we saw is that we are divided country. Going forward, you can either govern from the middle and bring it together or go to your respective corners. How important will it be what happens in congress and specifically with Mitch Mcconnell<\/a> if he is the majority leader in the senate . Thus far, there has been no indication that he wants to work with democrats. Richard i think that would backfire terribly, and voters would recognize that. The challenge is, it may take two years to see the impact of that. I hope he gives people a chance. Go back to when trump was elected. I was hoping that he would do something. The obvious issue he should have jumped on was infrastructure, looked to do bipartisan support, but instead he gave an inaugural address about him and his supporters. I know president elect biden will talk about bringing all voters together. This is a chance for republicans to say, here are some dividing issues that we think are important, workforce development, education. Get back to Economic Issues<\/a> as well as the pandemic issues. Those are strong Republican Issues<\/a> about how we create more and better jobs for people. Sweet have things in that spot on reasonableness, it should be embraced by people and show republicans can make a difference still. David pretty soon, we in the media will be talking about the first 100 days of joe biden as president. Give him your advice right now. What is the thing that you would like for him to do first . Richard i will give youtwo answers. The first part is, on the policy side, its about the pandemic, covid, the medical, health issue, and the economic issue. The other thing that he should do, and in particular, Vice President<\/a> elect harris, get on the road and go to the places where they are not expected to go. Get outside of the metro areas in michigan, get out to middle america. Talk to the people that didnt vote for you and let them see your humanity, let them see that you care. This is how you have to help heal this. The soapbox part of being in office, show people how they can bring people together and give people a chance. Not everyone will listen at first, but youll find people listening if you care. David always a pleasure to have you with us, former governor rick snyder. Many within the Republican Party<\/a> are not ready to move on from donald trump, with legal efforts around the country to turn things around. For his perspective, we bring in mark smith of the da vinci group. Give us your sense of what comes next. Mark thanks for having me. Next,k what has to happen and i agreed to some extent with what Governor Snyder<\/a> talked about and he did a very good job of healing michigan in his two terms there. With the probability that joe biden could be in the white challenges,t legal you have to look at what the election has given us. Uncertainty perhaps at the top of the ticket but a great deal of certainty, sort of a red wave that produced a blue dot in statehouses, at the gubernatorial level, certainly in the house and senate. Ups is below sea will end with a six, maybe eightseat majority in the house. We have seven or eight pickups now, looking to an additional three or four. Senate, at a republican the race in North Carolina<\/a>, alaska will bring us to 50. Then we have the runoffs in georgia, likely 51 or 52. Likely an all or nothing proposition in georgia. There is a centerright policy agreement that needs to come through all of these bodies, house, senate, and white house, to move the economy forward and ovid simultaneously. David can you get there with President Trump<\/a> the head of the party . He shows every sign that he is not going away, he wants a substantial say. Inferencepossible that the electorate did not reject his policies, but did not go with him as a person . In some instances, thats correct. When you look at places like georgia, michigan, to some extent pennsylvania, perhaps even arizona. But in the rest of the country,. T is still quite red it went from the top of the ballot to the bottom of the ballot, shows policies that a lot of americans find more compelling. Some of those are jobs and the economy, public safety, and the dealingand certainly also with the covid response. Because anyt over election in the general is a contrast between one or the others policy. People on stage talking simultaneously. Someave seen this in Democrat Members<\/a> in the house, that we cannot talk about socialism anymore, cannot talk about defunding the police, negativehat did have a impact, rural, urban, suburban, etc. That gives both parties an opportunity to say, where did we get it right, where did we get it wrong, how to remove together at the federal level . As we move into the 2021 cycle, with the republican and democrat governors, you will have redistricting as an issue. That is something republicans and democrats will deal with simultaneously throughout 2021 going into the midterm cycle to see what happens in the 2022 cycle as well. Not to jump two years ahead david to come back to now for the moment, everyone agrees President Trump<\/a> has every right to pursue all legal avenues available to him. At the same time, you are to find any legal scholar who says that there is anything there. Apart from what he is entitled to do, is it good for the Republican Party<\/a> him to keep pressing the legal challenges and refuse to give in . Richard i think it is good in terms of continuing to support those 71 Million People<\/a> who supported the president , but at the same time, exhausting the legal remedies the pennsylvania case is a fairly broad set of circumstances. Whether that ends up including georgia, michigan, etc. , we will see. It could be florida 2000 on that theyor it may be did their best and the Supreme Court<\/a> simply was not convinced that there was as much voter fraud as alleged. Think the opportunity is for democrats and republicans to come together and define policies and push those forward in the white house to heal the country. We are, indeed, a divided country. David thank you so much, mark smith. Great to have you with us. , next, we are talking to joyce beatty from the state of ohio about what is going on in her state as she runs for leadership of the black caucus. I beg your pardon, for first word news, we are going to Mark Crumpton<\/a>. Mark joe biden is moving more forcefully to make a transition to the white house. Thelans to speak today on Affordable Care<\/a> act, the same day that the Supreme Court<\/a> is taking up the case. Mr. Biden is also likely to name a chief of staff this week. Doctors have another weapon in their arsenal against the fight against coronavirus. The fda has approved eli lillys antibody therapy for mild to moderate cases on an emergency basis. We spoke the ceo who said the development of a vaccine will not change anything for his company. We will still need medicines like our antibody therapy to help those who get sick, hopefully at a much lower rate as we approach Something Like<\/a> herd immunity, but you will still have endemic disease. There are many examples where this is true, including common respiratory viruses like rsv. Has beenomberg speaking with the ceo of Morgan Stanley<\/a> about the Election Results<\/a>. James gormansked about the battle for the control of congress. We dont know if republicans will hold the senate, we assume they will, with the georgia reelections in january. We dont know if President Trump<\/a>s many legal claims will prevail. I assume they dont. Mark 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<\/a>. This is bloomberg. Turn froming up, we the republican side of the aisle to the democrats for a look ahead, with congresswoman joyce beatty of ohio. This is balance of power on Bloomberg Television<\/a> and radio. David this is balance of power on Bloomberg Television<\/a> and radio. Im david westin. Biden may have won the election but we didnt see the blue wave somehow talked about. With the senate likely to go to the republicans, the democrats losing seats in the house. Bringing to question what the democrats can do in the next four years. We welcome joyce beatty, who is throwing her own hat into the ring to become the head of the congressional black caucus. Tell us about this chairmanship of the congressional black caucus. You would not seek that if there was not something that you wanted to do if you got it. What did you want to do . Thank you for having me. Im excited to announce that ill be officially running for chairmanship of the black caucus. Justiceour jobs and bill that we have introduced. We also have the joys george floyd policing act. Trumply, president announced that he is stopping all diversity and inclusion training. We know what that means for us, because we know what we have to lose. I have a piece of legislation that reinstates that. Now we have sent to president elect biden and the Transition Team<\/a> a letter asking him to put that on their list. Certainly, that is important to us, but important to all of america. David you have a lot more experience on this than i do. Every election is a bit of a snapshot of the country. What lessons do you think the Democratic Party<\/a> should take away from this . You did lose a few seats in the house. Doesnt look like you captured the senate, despite what the polls said. What does that tell you about the attitude of the country . That weim clyburn says should not be trumpeting too hard defunding the police. We should back off of that. Rep. Beatty i certainly agree with majority whip cliburn. What you have to remember is all politics is local. You have to talk about your district and what the people who voted you in represent. Language is important. It was never a part of our caucus mission to use defund the police. We talked about redirecting funds, looking at social services, training Mental Health<\/a> experts, and a whole host of things. When i came back home and was running hard in my district, when people talked about defunding the police, i talked about the good, the bad, and the ugly. We have a strong message about how we think we can build on and improve on. Certainly you learn from every election. I think people have given us a lot of direction about what they want. One thing that is for sure, they are dancing in the streets democrats are in charge and that president elect biden and Vice President<\/a> elect, Harris Kamala<\/a> harris are at the head of our ticket. David a lot of celebration we saw around the country. Are you concerned that President Trump<\/a> improved his performance among nonwhites, particularly among blacks . Even among black women, he doubled it. It is from 4 to 8 , lets be clear, but he made some inroads. Does that give you any concern . Rep. Beatty im not necessarily surprised. When you are an elected official, you look at all of the numbers, and you never say that you are not concerned. And my overly concerned . Absolutely not. I overly concerned . Lets look at the number of xlack and brown, latin women and individuals who came out, lets look at the great diversity and the democracy and the millions of people the largest number of people who have ever voted for a president in the united states. I think that shows you what the people think about donald trump and his administration, and that trumps everything. David in january, we will have a clean sheet of paper with the presidency and the congress as well. If you were advising President Biden<\/a> and his administration, what would be the first thing you would like to see them act on . Rep. Beatty the first thing they have to do as we bring this country together is deal with covid19. You cannot have 8 Million People<\/a> , the number changes every day, but 200,000 some people dying without making that a top priority. When we deal with that effectively, you listen to scientists, the medical experts, and along will come the economy, note other issues that are second, but more like a 1. 5. There are so many things because of the pandemic, we know it is health care, but we know there is economic turmoil and social justice issues. I think they will do a good job lending that. One thing that im most impressed with with president elect biden, he has already gotten started, put people in place to deal with covid19, announcing a chief of staff, looking at individuals to come into key places to help us build back better this Great America<\/a> that we live in. What about the Voting System<\/a> itself, do you think reforms need to be made there . Rep. Beatty when we look at the Voting System<\/a>, the number of people who voted in the midst of covid19, we ought to be saying thank you to all of those countduals who worked to thousands and thousands of ballots after election day. We learn each time we have a proud witht im very how we treated it, and that president elect biden insisted that we wait. We were also anxious to wake up on wednesday morning to say, yes, we won. But remember, it was this president elect who said to us, be patient. He understands everyday people. He understands when people wait in line and they want to vote, or if they voted early, or if they are overseas, that their vote should count. I feel about every vote counting. David not to mention all of those poll workers who worked through the night. Always a pleasure to have you with us, congresswoman joyce beatty of ohio. This is balance of power on Bloomberg Television<\/a> and radio. N and radio. David coming up, balance of power continues on bloomberg radio. We will speak to Health Care Economist<\/a> Catherine Baker<\/a> from the university of chicago about the fate of obamacare. This is balance of power on Bloomberg Television<\/a> and radio. Nd radio. [ sigh ] not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkinbath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkinbath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkinbath provides independence with peace of mind. Mark im Mark Crumpton<\/a> with bloomberg first word news. The Coronavirus Vaccine<\/a> will be available to all americans by april. That prediction from the health and Human Services<\/a> secretary alex azar v. He outlined what he said would be the distribution scheduled for pfizer and other companies experimental vaccines. Not have been approved yet. Pfizer said that monday its vaccine is over 90 effective in preventing the coronavirus. Acretary azar says pharmaceutical giant is ramping up to deliver 20 million doses monthly by the end of november. President trump is continuing to fight the results of the election. On twitter today, the president wrote, we will win. The president has Senate Majority<\/a> leader Mitch Mcconnell<\/a> in his corner. He says the president is within his rights and has no obligation to accept projections based on vote counts that joe biden won the election. Another shakeup at the pentagon. 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