1 00:00:01,120 --> 00:00:04,320 Speaker 1: Why from our nation's all talk here in Washington, d C. 2 00:00:04,559 --> 00:00:08,360 Speaker 1: Turns to President Elect Joe Biden's administration, Historically speaking the 3 00:00:08,360 --> 00:00:10,920 Speaker 1: markets that perform better when there is divided government. The 4 00:00:11,000 --> 00:00:14,600 Speaker 1: biggest pressure for physical stimulus is an off taking cases. 5 00:00:14,720 --> 00:00:19,720 Speaker 1: Bloomberg Sound on the insiders, the influencers, the inside. Biden 6 00:00:19,800 --> 00:00:22,640 Speaker 1: has promised again and again the he will unite the 7 00:00:22,680 --> 00:00:26,159 Speaker 1: country's state government's control elections left in the constitution. I 8 00:00:26,200 --> 00:00:30,120 Speaker 1: think that we can expect a smooth, thoughtful, methodical transition. 9 00:00:30,400 --> 00:00:34,920 Speaker 1: This is Bloomberg Sound On with Kevin Shirley on Bloomberg 10 00:00:36,159 --> 00:00:41,240 Speaker 1: and one oh h D two signed, sealed, almost delivered. 11 00:00:41,320 --> 00:00:45,440 Speaker 1: Congress gets a five thousand, five hundred and ninety three 12 00:00:45,560 --> 00:00:50,200 Speaker 1: page text of the COVID relief bill just hours before 13 00:00:50,240 --> 00:00:54,720 Speaker 1: they are anticipated to vote. Meanwhile, President Elect Joe Biden 14 00:00:54,800 --> 00:00:58,520 Speaker 1: gets the vaccine as states across the country see a 15 00:00:58,640 --> 00:01:02,360 Speaker 1: spike New Jersey. The spike is We've got a lot 16 00:01:02,400 --> 00:01:06,040 Speaker 1: to get through, including my interview with Congressman Dusty Johnson, 17 00:01:06,080 --> 00:01:09,440 Speaker 1: Republican from South Dakota. We begin tonight with sound on 18 00:01:10,760 --> 00:01:14,000 Speaker 1: the vaccine. As President Elect Joe Biden was able to 19 00:01:14,080 --> 00:01:17,040 Speaker 1: receive the vaccine earlier today. Here's what he had to say. 20 00:01:17,160 --> 00:01:20,000 Speaker 1: You know, this is just the beginning. It's one thing 21 00:01:20,040 --> 00:01:25,440 Speaker 1: to get the vaccine out and now is is going 22 00:01:25,480 --> 00:01:29,119 Speaker 1: to be on the road as well. But it's gonna 23 00:01:29,200 --> 00:01:34,119 Speaker 1: take time. It's gonna take time. Meanwhile, almost no time 24 00:01:34,240 --> 00:01:36,640 Speaker 1: left to spare as. The House has released the text 25 00:01:36,640 --> 00:01:39,199 Speaker 1: of a massive five thousand, five hundred and ninety three 26 00:01:39,200 --> 00:01:42,880 Speaker 1: page package of legislation combined worth a total of nine 27 00:01:43,000 --> 00:01:46,800 Speaker 1: hundred billion dollars in financial aid. It's attached to a 28 00:01:46,840 --> 00:01:50,640 Speaker 1: one point for trillion dollar measure to fund government operations 29 00:01:50,640 --> 00:01:55,440 Speaker 1: through the end of the fiscal year. Also included major tax, energy, 30 00:01:55,520 --> 00:01:59,440 Speaker 1: national security policy measures. And while it was a major 31 00:01:59,520 --> 00:02:03,560 Speaker 1: by part is and breakthrough, Republicans and Democrats wasted no 32 00:02:03,720 --> 00:02:06,880 Speaker 1: time in blaming each other for the delay. Here sounds 33 00:02:06,920 --> 00:02:09,800 Speaker 1: on that from Senate Majority Leader Mitch McConnell. With a 34 00:02:09,800 --> 00:02:14,480 Speaker 1: new president elect of their own party, everything changed. Democrats 35 00:02:14,480 --> 00:02:16,920 Speaker 1: suddenly came around to our position that we should find 36 00:02:16,960 --> 00:02:19,440 Speaker 1: consensus from back a law where we agree and get 37 00:02:19,560 --> 00:02:23,799 Speaker 1: urgent help out the door and sentiment art the leader 38 00:02:23,840 --> 00:02:27,919 Speaker 1: Chuck Schumer weight in blaming Republicans. The Republican leaders accusation 39 00:02:28,000 --> 00:02:30,880 Speaker 1: that the blame for this bill's delay lies totally on 40 00:02:30,880 --> 00:02:34,240 Speaker 1: one side is just ridiculous. It's Alice in wonder Land 41 00:02:34,280 --> 00:02:37,040 Speaker 1: thinking it defies all the facts as to what we 42 00:02:37,080 --> 00:02:41,720 Speaker 1: have seen. Stephen Dennis is a Bloomberg Congress reporter. Stephen, 43 00:02:42,000 --> 00:02:44,680 Speaker 1: let's step aside from the blame game and dive headfirst 44 00:02:44,720 --> 00:02:47,960 Speaker 1: into the policy. What is in this nine hundred billion 45 00:02:48,000 --> 00:02:52,320 Speaker 1: dollar aid package. Yeah, so there's a lot here for businesses, 46 00:02:53,000 --> 00:02:56,360 Speaker 1: you know, nearly three hundred billion dollars for another set 47 00:02:56,360 --> 00:03:01,200 Speaker 1: of checks in the paycheck protection program, companys that have 48 00:03:01,360 --> 00:03:04,320 Speaker 1: seen a big dip in their revenue and a quarter 49 00:03:04,400 --> 00:03:06,880 Speaker 1: and this year we'll be able to get a big 50 00:03:07,000 --> 00:03:12,200 Speaker 1: additional check. There's like fifteen sixteen billion more for airlines. 51 00:03:12,280 --> 00:03:16,799 Speaker 1: There's like sixty seventy billion for vaccine distribution and testing, 52 00:03:17,919 --> 00:03:22,520 Speaker 1: eighty billion for schools and universities, like thirteen billion for 53 00:03:23,560 --> 00:03:27,840 Speaker 1: food stamps, and another thirteen billion for farmers. Basically, almost 54 00:03:27,880 --> 00:03:31,520 Speaker 1: everybody got something in this package, including the six hundred 55 00:03:31,520 --> 00:03:35,520 Speaker 1: dollars uh and checks that we'll go to most Americans 56 00:03:36,320 --> 00:03:39,560 Speaker 1: and the unemployed will get three hundred dollar per week 57 00:03:39,600 --> 00:03:44,600 Speaker 1: bonus for eleven more weeks. So both parties had a 58 00:03:44,640 --> 00:03:48,080 Speaker 1: lot of things added to this bill. You know, we're 59 00:03:48,120 --> 00:03:51,320 Speaker 1: still frankly going through it with this five thousand, five 60 00:03:51,400 --> 00:03:55,280 Speaker 1: hundred you know, almost fifty six hundred page bill and 61 00:03:55,360 --> 00:03:58,040 Speaker 1: still finding new things there. There's stuff in here for 62 00:03:58,240 --> 00:04:01,560 Speaker 1: racehorse owners, there's stuff in here for there's a permanent 63 00:04:01,600 --> 00:04:05,600 Speaker 1: beard tax cut. I mean, you name it. There's a 64 00:04:05,640 --> 00:04:09,480 Speaker 1: line in this bill with it. Steven Dennis is with 65 00:04:09,680 --> 00:04:13,160 Speaker 1: us Bloomber Congress reporter. I want to focus right now 66 00:04:13,680 --> 00:04:17,360 Speaker 1: on the pandemic Relief portion, which would provide direct payments, 67 00:04:17,360 --> 00:04:21,120 Speaker 1: as you mentioned, of six hundred dollars to most Americans, 68 00:04:21,440 --> 00:04:26,520 Speaker 1: specifically which Americans Stephen Dennis. Yeah, So if you have 69 00:04:26,600 --> 00:04:31,640 Speaker 1: a Social Security number and you make between you know, 70 00:04:32,760 --> 00:04:36,640 Speaker 1: uh less than seventy five thou dollars for single adults 71 00:04:36,680 --> 00:04:41,360 Speaker 1: and double that for married adults filing jointly phasing out 72 00:04:42,200 --> 00:04:46,320 Speaker 1: at ninety nine thousand, and double that, so you will 73 00:04:46,360 --> 00:04:51,960 Speaker 1: get those six d dollar checks you'll w estentially next 74 00:04:52,000 --> 00:04:54,640 Speaker 1: week for most people, you know, just showing up in 75 00:04:54,640 --> 00:04:57,800 Speaker 1: your bank account, and then other people will get it 76 00:04:57,800 --> 00:05:01,679 Speaker 1: in the mail very shortly because you know, they basically 77 00:05:01,720 --> 00:05:04,080 Speaker 1: did these checks before. So the I R. S is 78 00:05:04,120 --> 00:05:08,280 Speaker 1: already primed and ready to go. So I interrupt for 79 00:05:08,400 --> 00:05:12,680 Speaker 1: kids six hundred dollars per child. Okay, So I just 80 00:05:12,720 --> 00:05:14,240 Speaker 1: want to be clear here because this is a question 81 00:05:14,240 --> 00:05:16,000 Speaker 1: that I've gotten all day today. Is when the money 82 00:05:16,040 --> 00:05:18,240 Speaker 1: will show up. It could show up as early as 83 00:05:18,279 --> 00:05:20,760 Speaker 1: next week, because the Stephen Dennis just reported to us 84 00:05:21,120 --> 00:05:24,520 Speaker 1: they already have that infrastructure in place in order to 85 00:05:24,600 --> 00:05:27,919 Speaker 1: know and realize who should get the check. It also 86 00:05:28,040 --> 00:05:31,880 Speaker 1: might end up uh if you uh in the mail, 87 00:05:32,320 --> 00:05:35,080 Speaker 1: but that will come relatively quickly and as early as 88 00:05:35,160 --> 00:05:37,800 Speaker 1: next week. In addition to that three hundred dollars per 89 00:05:37,800 --> 00:05:41,920 Speaker 1: week and enhanced unemployment benefits through March. So what happens 90 00:05:41,920 --> 00:05:45,640 Speaker 1: in March expiring programs for gig workers and long term 91 00:05:45,760 --> 00:05:49,560 Speaker 1: unemployed also are going to continue elaborate for us Stephen 92 00:05:49,560 --> 00:05:52,000 Speaker 1: Dennis on the three hundred dollars per week and enhanced 93 00:05:52,279 --> 00:05:55,599 Speaker 1: unemployment benefits. Is that in addition to the six hundred 94 00:05:55,600 --> 00:05:58,400 Speaker 1: dollar checks? Yeah, that's an addition of that. You know, 95 00:05:58,520 --> 00:06:00,880 Speaker 1: everybody gets the six hundred dollar checks if you meet 96 00:06:00,920 --> 00:06:04,320 Speaker 1: that income threshold and then you uh, you know. The 97 00:06:04,400 --> 00:06:08,920 Speaker 1: unemployment programs are multiple different ones, including ones for gig 98 00:06:08,960 --> 00:06:14,800 Speaker 1: workers where you get the three checks. Um, now that 99 00:06:14,839 --> 00:06:20,760 Speaker 1: you get basically eleven week extension and after that, uh, 100 00:06:20,800 --> 00:06:23,320 Speaker 1: you know, any one person can have no more than 101 00:06:23,440 --> 00:06:27,479 Speaker 1: fifty weeks uh for unemployment no matter what. Since the 102 00:06:27,520 --> 00:06:30,560 Speaker 1: start of this, you know, and it provided that that 103 00:06:30,600 --> 00:06:33,000 Speaker 1: hasn't run out, they have it. I think until basically 104 00:06:33,040 --> 00:06:36,520 Speaker 1: April five they could get at least some unemployment check 105 00:06:37,080 --> 00:06:39,039 Speaker 1: But after that it's going to be up to the 106 00:06:39,120 --> 00:06:44,200 Speaker 1: next Congress, the next administration to decide whether to extend that. Already, 107 00:06:44,200 --> 00:06:48,320 Speaker 1: Democrats are talking about doing a big new package next year. 108 00:06:49,440 --> 00:06:52,000 Speaker 1: Biden clearly wants to have another big new package, and 109 00:06:52,080 --> 00:06:55,839 Speaker 1: Republicans are once again sort of saying, not so fast. 110 00:06:55,920 --> 00:06:58,159 Speaker 1: We just you know, they're trying to take credit here 111 00:06:58,240 --> 00:07:00,720 Speaker 1: for keeping this thing under a trill in dollars when 112 00:07:00,720 --> 00:07:04,479 Speaker 1: the Democrats wanted two or three trillion. So I think 113 00:07:04,520 --> 00:07:08,440 Speaker 1: the Republican is going to be much more reluctant next 114 00:07:08,480 --> 00:07:13,920 Speaker 1: year to have some an additional big spending package. Um, 115 00:07:14,000 --> 00:07:16,320 Speaker 1: you know, you do have something that expire very soon, 116 00:07:16,800 --> 00:07:20,840 Speaker 1: and this eviction moratorium will expire at the end of 117 00:07:20,920 --> 00:07:23,320 Speaker 1: January instead of the end of this month, so there's 118 00:07:23,480 --> 00:07:26,600 Speaker 1: only a one month reprieve for folks who are behind 119 00:07:26,640 --> 00:07:29,320 Speaker 1: on the rent There's a twenty five billion dollar rental 120 00:07:29,360 --> 00:07:32,920 Speaker 1: assistance program that flows through the States, but it's kind 121 00:07:32,920 --> 00:07:35,360 Speaker 1: of hard to imagine that that's going to reach landlords 122 00:07:35,360 --> 00:07:39,840 Speaker 1: and renters before that eviction moratorium is up. So there's 123 00:07:39,880 --> 00:07:44,640 Speaker 1: going to be a crunch there that Joe Biden would face, uh, 124 00:07:44,720 --> 00:07:47,440 Speaker 1: you know, eleven days after he takes you at the office. 125 00:07:47,560 --> 00:07:52,040 Speaker 1: On January. Our colleagues Christopher Condon and Lara Davison wrote 126 00:07:52,080 --> 00:07:56,680 Speaker 1: a brilliant article earlier today headline stimulus compromise doesn't resolve 127 00:07:56,720 --> 00:07:59,800 Speaker 1: that emergency powers debate. Adam Hodge joins me in the 128 00:07:59,840 --> 00:08:03,240 Speaker 1: next stour. Previously worked in the Obama Treasury Department. I 129 00:08:03,280 --> 00:08:05,840 Speaker 1: know he was eager to talk about this. I spoke 130 00:08:05,880 --> 00:08:08,840 Speaker 1: with some Toomey staffers. Uh. Senator pat to me the 131 00:08:08,880 --> 00:08:12,520 Speaker 1: Republican really in the middle of all of this earlier today. 132 00:08:12,640 --> 00:08:15,360 Speaker 1: Uh for an update, and we'll dive into that coming 133 00:08:15,440 --> 00:08:18,320 Speaker 1: up next. But just in terms, uh, Stephen Dennis, of 134 00:08:18,360 --> 00:08:22,480 Speaker 1: what you can tell us about where the provision with 135 00:08:22,560 --> 00:08:26,040 Speaker 1: regards to the plan and whether or not it prohibits 136 00:08:26,040 --> 00:08:31,080 Speaker 1: the FED from restarting programs supporting corporate bonds, small and 137 00:08:31,160 --> 00:08:35,440 Speaker 1: midsized companies and municipalities a k a. The FED lending facilities. 138 00:08:35,920 --> 00:08:40,359 Speaker 1: I'm told from too me World that this stimulus prevents 139 00:08:40,960 --> 00:08:44,720 Speaker 1: the Central Bank from setting up similar FED lending reserve 140 00:08:44,800 --> 00:08:49,080 Speaker 1: programs uh in Abiden administration, and that the funding that 141 00:08:49,120 --> 00:08:53,880 Speaker 1: they are reallocating back the four hundred plus billion dollars 142 00:08:54,400 --> 00:08:58,000 Speaker 1: is in part how this nine billion dollar plan is 143 00:08:58,040 --> 00:09:01,840 Speaker 1: being funded. I mean, it's kind of funny money because 144 00:09:01,840 --> 00:09:05,040 Speaker 1: it wasn't money going out the door. Um, it wasn't 145 00:09:05,200 --> 00:09:08,960 Speaker 1: scored as deficit money. It was supposed to be lent, 146 00:09:09,280 --> 00:09:12,120 Speaker 1: and you know, the CBO thought that money would ultimately 147 00:09:12,160 --> 00:09:14,600 Speaker 1: be repaid, or at least most of it, you know. 148 00:09:15,840 --> 00:09:18,800 Speaker 1: So I don't know. I mean, the reality is this, 149 00:09:18,800 --> 00:09:22,160 Speaker 1: this package is going to increase the debt substantially. We're 150 00:09:22,160 --> 00:09:26,120 Speaker 1: audience trillion dollars. And I think when it comes to 151 00:09:26,120 --> 00:09:29,240 Speaker 1: the FED, the big the big question was, well, if 152 00:09:29,280 --> 00:09:33,520 Speaker 1: we have a huge new problem, um, you know, say 153 00:09:33,640 --> 00:09:36,120 Speaker 1: this strain in the UK comes over here and we 154 00:09:36,240 --> 00:09:40,240 Speaker 1: end up with a much bigger, tougher problem. Uh. The 155 00:09:40,240 --> 00:09:42,920 Speaker 1: the idea that the FED is going to have some 156 00:09:42,920 --> 00:09:48,480 Speaker 1: some blanket chains that they didn't have before. The cares 157 00:09:48,480 --> 00:09:51,560 Speaker 1: that before all this relief packages, that they were going 158 00:09:51,559 --> 00:09:55,120 Speaker 1: to have some straight jacket was something that Democrats wanted 159 00:09:55,160 --> 00:09:57,480 Speaker 1: to avoid. They think that they've accomplished that that the 160 00:09:57,520 --> 00:10:01,920 Speaker 1: FED will have basically be restored word to their emergency 161 00:10:01,960 --> 00:10:06,240 Speaker 1: powers that they already had. To Me and and his 162 00:10:06,360 --> 00:10:08,960 Speaker 1: folks were trying to say, well, hey, we've made it 163 00:10:09,000 --> 00:10:11,720 Speaker 1: so they can't just restart these programs. I think that's 164 00:10:12,160 --> 00:10:14,680 Speaker 1: the kind of you know, the proof would be in 165 00:10:14,679 --> 00:10:17,920 Speaker 1: the pudding. I mean, if we do up with that 166 00:10:18,000 --> 00:10:20,959 Speaker 1: crisis and the FED tries to set up a facility 167 00:10:21,040 --> 00:10:24,080 Speaker 1: on their own using their pre existing powers, you know, 168 00:10:24,080 --> 00:10:26,040 Speaker 1: it's kind of hard to imagine that somebody we have 169 00:10:26,120 --> 00:10:30,319 Speaker 1: standing to go in And I can't thank you enough. 170 00:10:30,320 --> 00:10:34,000 Speaker 1: Stephen Dennis. The philosophical Fed debate always continues, and it's 171 00:10:34,040 --> 00:10:37,920 Speaker 1: always a fascinating one here in Washington, d C. Stephen Dennis, 172 00:10:37,920 --> 00:10:41,160 Speaker 1: excellent reporting Bloomberg Congress reporter out in front of all 173 00:10:41,200 --> 00:10:44,640 Speaker 1: of these stories throughout the past several months. On this 174 00:10:44,679 --> 00:10:46,840 Speaker 1: fiscal stimulus deal coming up. I check in on the markets. 175 00:10:46,840 --> 00:10:51,360 Speaker 1: I'm Kevin SERELLI. You're listening. It's a Bloomberg. You're listening 176 00:10:51,400 --> 00:10:56,000 Speaker 1: to Bloomberg sound on with Kevin Surrele on Bloomberg and 177 00:10:56,040 --> 00:10:58,320 Speaker 1: one oh five point seven f m h D two. 178 00:10:58,960 --> 00:11:03,839 Speaker 1: I'm Kevin Serelli, chief Washington correspondent for Bloomberg Television and 179 00:11:03,920 --> 00:11:08,240 Speaker 1: for Bloomberg Radio. Just so much news coming up and Uh, 180 00:11:08,320 --> 00:11:10,280 Speaker 1: in the next hour, we're going to continue to talk 181 00:11:10,320 --> 00:11:15,160 Speaker 1: about the fiscal stimulus and what precisely it means for 182 00:11:15,520 --> 00:11:18,880 Speaker 1: the economy, as well as for President elect Joe Biden, 183 00:11:18,920 --> 00:11:22,400 Speaker 1: who of course received along with senators over the weekend, 184 00:11:22,840 --> 00:11:25,880 Speaker 1: that vaccine. But I want to welcome into the conversation, 185 00:11:26,600 --> 00:11:30,240 Speaker 1: uh Mark Summerlin, economist and managing partner of even Flow 186 00:11:30,320 --> 00:11:33,120 Speaker 1: Macro in Washington, d c UH and I want to 187 00:11:33,120 --> 00:11:35,559 Speaker 1: get a check on what happened in the markets earlier today. 188 00:11:35,640 --> 00:11:39,280 Speaker 1: US stocks slumped, joining a global decline as a new 189 00:11:39,360 --> 00:11:42,320 Speaker 1: variant of the coronavirus in the United Kingdom and a 190 00:11:42,320 --> 00:11:46,080 Speaker 1: wave of lockdowns and travel restrictions. Damned spirits. We've got 191 00:11:46,080 --> 00:11:50,960 Speaker 1: sound on that topic from British Prime Minister Boris Johnson HEREUS. 192 00:11:51,000 --> 00:11:54,960 Speaker 1: We looked at where the new variant walls where it 193 00:11:55,080 --> 00:12:01,319 Speaker 1: was spreading and adapted to restricted that the SMP five 194 00:12:01,440 --> 00:12:05,360 Speaker 1: hundred index dipped and it dipped about point four percent, 195 00:12:05,480 --> 00:12:08,800 Speaker 1: dragged lower by losses for Tesla, which fell more than 196 00:12:08,840 --> 00:12:11,200 Speaker 1: six percent on its first day after being added to 197 00:12:11,240 --> 00:12:14,319 Speaker 1: the U S benchmark. The dal Jones Industrial average eked 198 00:12:14,360 --> 00:12:19,439 Speaker 1: out again as Goldman Sachs rallied after regulators approved a 199 00:12:19,559 --> 00:12:23,280 Speaker 1: stock buy back, the yield on ten year treasuries retreated, 200 00:12:23,360 --> 00:12:26,160 Speaker 1: and the dollar climbed. The weakness in the US markets 201 00:12:26,200 --> 00:12:28,520 Speaker 1: was minor compared to the route scene in Europe, where 202 00:12:28,520 --> 00:12:32,280 Speaker 1: the Stock six index slumped the most since October. As Italy, 203 00:12:32,360 --> 00:12:35,240 Speaker 1: the Netherlands, Belgium, and France closed their borders to the UK, 204 00:12:35,840 --> 00:12:39,600 Speaker 1: travel and leisure stocks were hit hard. Mark. I bring 205 00:12:39,640 --> 00:12:42,800 Speaker 1: this all up because this this news of a second strain. 206 00:12:42,880 --> 00:12:48,360 Speaker 1: First of all, there have been so much unfortunately uh 207 00:12:48,720 --> 00:12:53,800 Speaker 1: misinformation spreading on the internet precisely about this second strain. 208 00:12:53,920 --> 00:12:56,640 Speaker 1: It's invoked fear, and it looks like a lot of 209 00:12:56,679 --> 00:13:01,360 Speaker 1: the markets were royaled by that fear. But does does 210 00:13:01,600 --> 00:13:05,800 Speaker 1: does it appear to be smoothing out? Mark Summerlin, Hi, Kevin, 211 00:13:05,840 --> 00:13:08,679 Speaker 1: thank you very much for for having me um. I mean, 212 00:13:08,800 --> 00:13:12,120 Speaker 1: this was definitely a day where Europe was driving driving 213 00:13:12,160 --> 00:13:14,679 Speaker 1: the US UM, which doesn't always happen and we can 214 00:13:14,720 --> 00:13:18,439 Speaker 1: see the you know, the markets from the European countries 215 00:13:18,480 --> 00:13:20,960 Speaker 1: that you mentioned in oil down three percent, that the 216 00:13:20,960 --> 00:13:24,080 Speaker 1: market is taking this pretty seriously. I think there are 217 00:13:24,080 --> 00:13:27,800 Speaker 1: two parts to the story, um, and and one is 218 00:13:27,960 --> 00:13:30,679 Speaker 1: one part is true and one part is not true. 219 00:13:30,720 --> 00:13:33,960 Speaker 1: And so on the good news, UM, there is no 220 00:13:34,080 --> 00:13:38,880 Speaker 1: evidence that the new strain is more lethal UM or 221 00:13:38,880 --> 00:13:41,840 Speaker 1: that the new strain will be able will not be 222 00:13:41,960 --> 00:13:45,320 Speaker 1: helped with the vaccine. I have to I would like 223 00:13:45,360 --> 00:13:48,920 Speaker 1: you to say that again. Yeah, there is no evidence 224 00:13:49,200 --> 00:13:52,480 Speaker 1: that this new strain of the virus is more lethal 225 00:13:52,920 --> 00:13:56,320 Speaker 1: than the current strain UM and in fact, we can 226 00:13:56,360 --> 00:13:59,960 Speaker 1: see in the hospitalization data that it's probably pretty similar 227 00:14:00,040 --> 00:14:03,319 Speaker 1: learn to the existing strain UM. And there is also 228 00:14:03,520 --> 00:14:07,840 Speaker 1: no evidence UM that the vaccine would not also protect 229 00:14:07,880 --> 00:14:14,000 Speaker 1: against this current strain. Precisely, precisely ahead, and I'm breaking 230 00:14:14,080 --> 00:14:16,720 Speaker 1: up the segment to grip people's attentions. If I could clap, 231 00:14:17,040 --> 00:14:18,880 Speaker 1: if I could clap my hands to wake people up 232 00:14:19,080 --> 00:14:20,800 Speaker 1: to listen to what you just said, I would do it. 233 00:14:20,800 --> 00:14:22,600 Speaker 1: And I hope it comes through and is translating in 234 00:14:22,640 --> 00:14:25,680 Speaker 1: my voice, because this is incredibly important. If you're listening 235 00:14:25,760 --> 00:14:27,720 Speaker 1: in your car and you've been hearing the drum drum, 236 00:14:27,800 --> 00:14:30,560 Speaker 1: drip drip, and your social feeds of a second strain 237 00:14:30,640 --> 00:14:34,560 Speaker 1: and the fear and everything, but the but the smart 238 00:14:34,680 --> 00:14:39,160 Speaker 1: person is going to remain steadfast in their hope because 239 00:14:39,200 --> 00:14:41,360 Speaker 1: there is no evidence to suggest that the that the 240 00:14:41,440 --> 00:14:45,000 Speaker 1: vaccine does not work against the second strain. The best 241 00:14:45,040 --> 00:14:47,200 Speaker 1: comparison when I was in my show prep this morning, 242 00:14:47,600 --> 00:14:50,240 Speaker 1: prepping for this is it's it's a different kind of apple. 243 00:14:50,440 --> 00:14:52,880 Speaker 1: You've got Granny Smith apples, you've got green apples, you've 244 00:14:52,880 --> 00:14:54,960 Speaker 1: got red apples. It's a different kind of apple. If 245 00:14:54,960 --> 00:14:56,720 Speaker 1: you're allergic to apples, you're still going to be allergic 246 00:14:56,760 --> 00:15:00,120 Speaker 1: to this. Go ahead, Mark Summerlin. Yes, And so the 247 00:15:00,480 --> 00:15:04,680 Speaker 1: and the vaccines are actually they're pretty complex in design 248 00:15:04,880 --> 00:15:08,960 Speaker 1: to work against um different mutations and different levels. And 249 00:15:09,000 --> 00:15:13,240 Speaker 1: so most people, scientists who are pretty are pretty optimistic 250 00:15:13,320 --> 00:15:17,160 Speaker 1: that this this new new variant wouldn't wouldn't be wouldn't 251 00:15:17,160 --> 00:15:20,320 Speaker 1: be a problem for the vaccine. And it's what we 252 00:15:20,400 --> 00:15:23,160 Speaker 1: can see is that it's it's spreading faster, and we 253 00:15:23,200 --> 00:15:25,920 Speaker 1: can see the data in the UK, which had rolled 254 00:15:25,960 --> 00:15:29,760 Speaker 1: over was getting better. On December tenth, started to to 255 00:15:29,920 --> 00:15:33,960 Speaker 1: accelerate dramatically and it's and the normal course of a 256 00:15:34,080 --> 00:15:39,320 Speaker 1: virus is actually to become less lethal and spread faster. 257 00:15:39,480 --> 00:15:42,680 Speaker 1: And that's how how viruses try to survive in general, 258 00:15:43,200 --> 00:15:45,720 Speaker 1: is you want to kill less hosts and you want 259 00:15:45,760 --> 00:15:48,480 Speaker 1: to be able to spread faster. And so it would 260 00:15:48,480 --> 00:15:51,760 Speaker 1: be if this is what indeed has happened, Um, it 261 00:15:51,800 --> 00:15:55,280 Speaker 1: would be it would be fairly consistent and so um, 262 00:15:55,360 --> 00:15:58,280 Speaker 1: yes it might spread faster, but no, it's not worse 263 00:15:58,360 --> 00:16:01,600 Speaker 1: and it might actually be be less lethal when we 264 00:16:01,760 --> 00:16:03,400 Speaker 1: by the time we get all the all the date 265 00:16:03,480 --> 00:16:06,320 Speaker 1: on it. Mark Summerlin's with US managing partner at even 266 00:16:06,320 --> 00:16:09,200 Speaker 1: Flow Macro, which was founded in two thousand and thirteen 267 00:16:09,240 --> 00:16:12,360 Speaker 1: by Mark Summerlin. Previously, he spent ten years as the 268 00:16:12,360 --> 00:16:15,520 Speaker 1: managing director of the Lindsay Group UH and prior to 269 00:16:15,600 --> 00:16:18,360 Speaker 1: that he traveled extensively throughout Asia as well as Europe. 270 00:16:18,800 --> 00:16:21,760 Speaker 1: From two thousand and one to two thousand and two, 271 00:16:22,240 --> 00:16:25,720 Speaker 1: Mark served as Deputy Assistant to the President for Economic 272 00:16:25,840 --> 00:16:30,480 Speaker 1: Policy as well as Deputy Director of the National Economic Council. 273 00:16:30,920 --> 00:16:33,360 Speaker 1: In that capacity, he helped a President Bush at the 274 00:16:33,400 --> 00:16:37,080 Speaker 1: time develop and implement his economic agenda. I say this 275 00:16:37,240 --> 00:16:40,600 Speaker 1: because it was in the aftermath of nine eleven, and 276 00:16:40,720 --> 00:16:44,320 Speaker 1: obviously two thousand and twenty has been its own very 277 00:16:44,400 --> 00:16:49,400 Speaker 1: different type of uncertain as well as anxious year, not 278 00:16:49,560 --> 00:16:53,400 Speaker 1: just for the markets, more importantly for American families. How 279 00:16:53,480 --> 00:16:58,920 Speaker 1: much of a reverberation Mark Summerlin does bipartisan fiscal stimulus 280 00:16:58,920 --> 00:17:02,480 Speaker 1: coming the week of Christmas way on the psychology of 281 00:17:02,520 --> 00:17:07,480 Speaker 1: the American worker. I mean, it definitely helps, and you just, 282 00:17:07,960 --> 00:17:10,439 Speaker 1: you know, a lot of America just needs to know 283 00:17:10,680 --> 00:17:16,600 Speaker 1: that there's action and that the bipartisan members are working together. 284 00:17:17,240 --> 00:17:21,080 Speaker 1: And for the fourteen million people who are on the 285 00:17:21,160 --> 00:17:23,760 Speaker 1: verge of losing their unemployment insurance, the fact that this 286 00:17:23,800 --> 00:17:26,520 Speaker 1: is going to continue for another three months is a 287 00:17:26,520 --> 00:17:29,240 Speaker 1: lifeline that gets us through to the to the other 288 00:17:29,359 --> 00:17:31,760 Speaker 1: end when we've been have enough people vaccinated to be 289 00:17:31,800 --> 00:17:35,239 Speaker 1: able to control the virus better, and so you know, 290 00:17:35,320 --> 00:17:38,440 Speaker 1: the there's always gonna be a lot of critics about everything, 291 00:17:38,680 --> 00:17:43,520 Speaker 1: you know, an individual bill. My estimate of the economic 292 00:17:43,800 --> 00:17:46,120 Speaker 1: damage that's going to be done by this latest wave 293 00:17:46,240 --> 00:17:49,160 Speaker 1: is about two billion. You're going to get more than 294 00:17:49,200 --> 00:17:50,840 Speaker 1: that out of this bill. It's not going to be 295 00:17:50,840 --> 00:17:54,720 Speaker 1: the most efficient thing by definition, because it goes through Congress. Um. 296 00:17:54,800 --> 00:17:57,480 Speaker 1: But it'll it'll, it'll be enough to make a meaningful 297 00:17:57,520 --> 00:18:00,600 Speaker 1: different in most people's lives. Mark. You know that US 298 00:18:00,640 --> 00:18:04,680 Speaker 1: and the Republican Party, there is always a conversation going 299 00:18:04,760 --> 00:18:08,040 Speaker 1: on about how to how to pay off the debt. 300 00:18:08,400 --> 00:18:11,000 Speaker 1: I mean, we've got twenty seven trillion dollars worth of debt. 301 00:18:11,240 --> 00:18:15,920 Speaker 1: And I've interviewed Republicans this year who understand the magnitude 302 00:18:15,920 --> 00:18:21,160 Speaker 1: of the moment, understand that this pandemic really caught Uh, 303 00:18:21,480 --> 00:18:24,720 Speaker 1: it was needed to help people, the assistance, the financial end. 304 00:18:25,359 --> 00:18:28,560 Speaker 1: And yet there's this boiling under the surface tension Mark 305 00:18:29,240 --> 00:18:32,200 Speaker 1: about what to do about twenty seven trillion dollars in debt. 306 00:18:32,240 --> 00:18:35,960 Speaker 1: How does the Republican Party navigate through that? Yeah, I 307 00:18:35,960 --> 00:18:37,600 Speaker 1: mean it's always it's always a little bit of a 308 00:18:37,640 --> 00:18:41,119 Speaker 1: struggle because Republicans are the party of smaller government and 309 00:18:41,240 --> 00:18:44,639 Speaker 1: less debt. Um. What is economically true is that in 310 00:18:44,720 --> 00:18:47,840 Speaker 1: a pandemic, we have a had a massive increase in 311 00:18:47,880 --> 00:18:52,080 Speaker 1: the amount of savings, and that savings provides the funding 312 00:18:52,160 --> 00:18:55,159 Speaker 1: for the debt itself, um, and so we have the 313 00:18:55,200 --> 00:18:58,760 Speaker 1: capacity to borrow this now, um, And once we're out 314 00:18:58,760 --> 00:19:01,119 Speaker 1: of the pandemic, then we'll go into a new discussion 315 00:19:01,119 --> 00:19:05,080 Speaker 1: about what what sort of the best long term UM 316 00:19:05,320 --> 00:19:07,480 Speaker 1: balance and the debt is right now that the net 317 00:19:07,480 --> 00:19:09,960 Speaker 1: addrisk costs are actually lowered this year than last year, 318 00:19:10,000 --> 00:19:13,840 Speaker 1: it's hard to believe with the extra trillion in debt UM. 319 00:19:13,960 --> 00:19:16,680 Speaker 1: And what Republicans will worry about, rightfully is we don't 320 00:19:16,680 --> 00:19:19,359 Speaker 1: know what what's the macro situation is going to be 321 00:19:19,440 --> 00:19:22,000 Speaker 1: five to ten years out and so maybe some of 322 00:19:22,040 --> 00:19:26,120 Speaker 1: those savings investment balances are going to change UM, and 323 00:19:26,200 --> 00:19:28,920 Speaker 1: so we'll go into a new new debate after all 324 00:19:29,000 --> 00:19:31,960 Speaker 1: this is over UM. But for now, an in crisis, 325 00:19:32,440 --> 00:19:35,240 Speaker 1: the just the amount of savings that is that happens 326 00:19:35,320 --> 00:19:39,159 Speaker 1: during a crisis provides you the borrowing capacity for you 327 00:19:39,200 --> 00:19:41,199 Speaker 1: to react and so there's nothing to worry about in 328 00:19:41,240 --> 00:19:44,000 Speaker 1: the in the short term. Mark Summerlin always appreciate it. 329 00:19:44,040 --> 00:19:45,960 Speaker 1: Thank you so much, sir for the time. He's a 330 00:19:46,000 --> 00:19:49,560 Speaker 1: managing partner of even Slow Macro and it was founded 331 00:19:49,600 --> 00:19:53,720 Speaker 1: in by Mark Summerlin. Previously in the Bush administration he 332 00:19:53,840 --> 00:19:56,439 Speaker 1: was the Deputy Assistant to the President for Economic Policy 333 00:19:56,440 --> 00:20:00,399 Speaker 1: and deputy Director but the National Economic Council. Much more 334 00:20:00,400 --> 00:20:02,960 Speaker 1: coming off next, I'm Kevin SURREALI Chief Washington corresponded for 335 00:20:02,960 --> 00:20:19,880 Speaker 1: Bloomberg TV and Radio. You're listening to Bloomberg Why from 336 00:20:19,880 --> 00:20:22,399 Speaker 1: our nation's camera? All talk here in Washington, d C. 337 00:20:22,600 --> 00:20:26,399 Speaker 1: Turns to President Elect Joe Biden's administration. Historically speaking, the 338 00:20:26,400 --> 00:20:28,960 Speaker 1: markets that performed better when there is divided government. The 339 00:20:29,040 --> 00:20:32,639 Speaker 1: biggest pressure for physical stimulus is an off taking cases. 340 00:20:32,760 --> 00:20:37,800 Speaker 1: Bloomberg Sound on the insiders, the influencers, the inside. Biden 341 00:20:37,840 --> 00:20:41,240 Speaker 1: has promised again and again the tables unite the country's 342 00:20:41,320 --> 00:20:44,440 Speaker 1: state government's control elections as in the Constitution. I think 343 00:20:44,480 --> 00:20:48,640 Speaker 1: that we can expect a smooth, thoughtful, methodical transition. This 344 00:20:49,000 --> 00:20:54,280 Speaker 1: is Bloomberg Sound On with Kevin Shirley on Bloomberg and 345 00:20:54,359 --> 00:20:56,560 Speaker 1: one oh five point seven f m h D two. 346 00:20:57,000 --> 00:21:00,760 Speaker 1: President Elect Joe Biden gets the vaccine as a second 347 00:21:00,920 --> 00:21:06,560 Speaker 1: strain in Britain, sends markets royal ing. Meanwhile, lawmakers on 348 00:21:06,680 --> 00:21:11,439 Speaker 1: Capitol Hill agree and release a more than fifty page 349 00:21:11,560 --> 00:21:15,879 Speaker 1: economic stimulus plan bipartisan though, and we check in with 350 00:21:15,920 --> 00:21:19,399 Speaker 1: Congressman Dusty Johnson, Republican from South Dakota, at the center 351 00:21:19,480 --> 00:21:21,800 Speaker 1: of all the negotiations. We begin tonight with sound on 352 00:21:21,840 --> 00:21:26,000 Speaker 1: the vaccination effort as President elect, Joe Biden joined the 353 00:21:26,240 --> 00:21:29,800 Speaker 1: dozens or so Republicans and Democratic senators who have all 354 00:21:29,920 --> 00:21:33,800 Speaker 1: received vaccinations in recent days. The President elect, as well 355 00:21:33,880 --> 00:21:37,360 Speaker 1: as the First Lady and soon to be First Lady, Dr. 356 00:21:37,480 --> 00:21:41,879 Speaker 1: Jill Biden Uh, spoke with reporters about the vaccine earlier today. 357 00:21:43,160 --> 00:21:45,920 Speaker 1: You know, this is just the beginning. It's one thing 358 00:21:46,040 --> 00:21:51,439 Speaker 1: to get the vaccine out and now is is going 359 00:21:51,480 --> 00:21:54,960 Speaker 1: to be on the road as well. But it's going 360 00:21:55,040 --> 00:21:59,880 Speaker 1: to take time. It's gonna take time. Meanwhile, US stock slumped, 361 00:22:00,119 --> 00:22:02,760 Speaker 1: joining a global decline as a new variants of the 362 00:22:02,840 --> 00:22:06,359 Speaker 1: coronavirus in the U K and a wave of lockdowns 363 00:22:06,440 --> 00:22:10,000 Speaker 1: and travel restrictions damp and spirits. Prime Minister bor and 364 00:22:10,280 --> 00:22:15,680 Speaker 1: Boris Johnson weighed, we looked at where the new variant 365 00:22:15,800 --> 00:22:22,640 Speaker 1: walls where it was spreading and adapted to restricted that. Meanwhile, 366 00:22:22,720 --> 00:22:25,560 Speaker 1: it's important to note that there is no evidence that 367 00:22:25,720 --> 00:22:29,359 Speaker 1: the vaccine does not work against this new variants, and 368 00:22:29,480 --> 00:22:32,920 Speaker 1: all signs indicate that the vaccine does in fact work 369 00:22:33,240 --> 00:22:35,960 Speaker 1: on this new variant, but no doubt it has race 370 00:22:36,040 --> 00:22:39,800 Speaker 1: concerns as a handful of countries restricted travel with the 371 00:22:40,000 --> 00:22:44,679 Speaker 1: u K. Elsewhere on Capitol Hill by partisanship reached from 372 00:22:44,720 --> 00:22:49,359 Speaker 1: Republicans and Democrats on a nine hundred billion dollar economic 373 00:22:49,520 --> 00:22:53,040 Speaker 1: stimulus proposal. The House released the text of a massive 374 00:22:53,200 --> 00:22:56,960 Speaker 1: five thousand, five hundred and ninety three page package of 375 00:22:57,119 --> 00:23:01,200 Speaker 1: legislation that combines pandemic relief with a bill to fund 376 00:23:01,320 --> 00:23:05,760 Speaker 1: government operations just hours before lawmakers were set to cast 377 00:23:05,840 --> 00:23:10,000 Speaker 1: their votes. Senate Majority Leader Mitch McConnell blamed Democrats for 378 00:23:10,080 --> 00:23:13,480 Speaker 1: the delay. With a new president elect of their own party, 379 00:23:13,600 --> 00:23:18,000 Speaker 1: everything changed. Democrats suddenly came around to our position that 380 00:23:18,119 --> 00:23:20,840 Speaker 1: we should find consensus from BACA law where we agree 381 00:23:20,920 --> 00:23:25,280 Speaker 1: and get urgent help out the door. Senate Minority Leader 382 00:23:25,400 --> 00:23:30,760 Speaker 1: Chuck Schumer blamed Republicans. The Republican leaders accusation that the 383 00:23:30,840 --> 00:23:33,960 Speaker 1: blame for this bill's delay lies totally on one side 384 00:23:34,080 --> 00:23:38,120 Speaker 1: is just ridiculous. It's Alice in Wonderland thinking. It defies 385 00:23:38,160 --> 00:23:40,879 Speaker 1: all the facts as to what we have seen. Frank 386 00:23:40,920 --> 00:23:44,159 Speaker 1: Massano as a partner at Bracewell's Policy Resolution Group, he 387 00:23:44,359 --> 00:23:47,920 Speaker 1: is the former Press secretary to several Republican lawmakers on 388 00:23:48,119 --> 00:23:51,600 Speaker 1: Capitol Hill, and Adam Hodge as a senior vice president 389 00:23:51,640 --> 00:23:56,080 Speaker 1: at Ariel Investments, and of course a former Obama Treasury 390 00:23:56,440 --> 00:24:00,399 Speaker 1: Department official, Adam will begin with you, let's sidestep the politics, 391 00:24:00,480 --> 00:24:04,080 Speaker 1: and let's first go into the specifics of what specifically 392 00:24:04,240 --> 00:24:08,480 Speaker 1: is in this piece of legislation. UH. And it includes 393 00:24:08,720 --> 00:24:11,240 Speaker 1: six hundred dollar checks that I'm told could go out 394 00:24:11,640 --> 00:24:16,400 Speaker 1: as early as next week for Americans who qualify who 395 00:24:16,480 --> 00:24:20,000 Speaker 1: earn less than seventy five thousand dollars annually in a 396 00:24:20,160 --> 00:24:23,320 Speaker 1: single income household or less than a hundred and fifty 397 00:24:23,400 --> 00:24:28,160 Speaker 1: thousand dollars annually UH in a couple joint tax filing. 398 00:24:28,560 --> 00:24:31,959 Speaker 1: In addition to that six hundred dollar checks per child, 399 00:24:32,280 --> 00:24:36,399 Speaker 1: What else is included in this measure? Adam Hodge? But 400 00:24:36,560 --> 00:24:40,400 Speaker 1: we also saw an extension of unemployment insurance at three 401 00:24:40,800 --> 00:24:44,320 Speaker 1: dollars UH there, which is down from the six hundred 402 00:24:44,320 --> 00:24:47,320 Speaker 1: dollars that was approved in the first CARES Act. You 403 00:24:47,359 --> 00:24:51,080 Speaker 1: also have two four billion dollars for additional PPP loans. 404 00:24:51,359 --> 00:24:55,560 Speaker 1: An important change and that UH is that it expands eligibility. 405 00:24:55,640 --> 00:24:59,440 Speaker 1: So hopefully some smaller and smaller businesses that were left 406 00:24:59,480 --> 00:25:02,439 Speaker 1: out or didn't get access to the first round actually 407 00:25:02,480 --> 00:25:05,480 Speaker 1: get get fundings and stuff in there for rental assistance 408 00:25:05,560 --> 00:25:08,840 Speaker 1: and vaccine distribution all good stuff. I think this this 409 00:25:08,920 --> 00:25:11,480 Speaker 1: whole week is an example of kind of the good, 410 00:25:11,560 --> 00:25:14,960 Speaker 1: the bad, and the ugly. The good, they passed the bill, 411 00:25:15,119 --> 00:25:19,399 Speaker 1: they got some much needed temporary relief um with I 412 00:25:19,440 --> 00:25:22,200 Speaker 1: wis should add some leadership from the president like Biden. 413 00:25:22,720 --> 00:25:25,440 Speaker 1: Uh bad. Obviously there's no funding for state local governments, 414 00:25:25,440 --> 00:25:28,240 Speaker 1: I think is a huge miss. And then what we 415 00:25:28,280 --> 00:25:30,160 Speaker 1: can talk about the ugly. But just to fight over 416 00:25:30,200 --> 00:25:35,280 Speaker 1: the FED too, We're gonna do a whole block. We're 417 00:25:35,280 --> 00:25:36,840 Speaker 1: gonna do a whole block on the FED because I 418 00:25:36,920 --> 00:25:39,240 Speaker 1: want to really dive into the specifics of the Central Bank. 419 00:25:39,480 --> 00:25:42,040 Speaker 1: But in addition to this, I'm hearing some Frank Maisano 420 00:25:42,080 --> 00:25:43,920 Speaker 1: if I don't know if it's out of Frank, but 421 00:25:44,200 --> 00:25:46,200 Speaker 1: Frank Maisano, just wait in here. What is in this 422 00:25:46,359 --> 00:25:50,200 Speaker 1: nine billion dollar plan from the energy perspective, because I 423 00:25:50,280 --> 00:25:53,040 Speaker 1: know that you are the go to guy for energy 424 00:25:53,119 --> 00:25:55,800 Speaker 1: in Washington, d C. Yeah, well, really, there's a lot 425 00:25:56,040 --> 00:25:57,719 Speaker 1: here in the energy bill. In fact, this is going 426 00:25:57,760 --> 00:26:00,640 Speaker 1: to be one of the first major climate bills that's 427 00:26:00,680 --> 00:26:03,000 Speaker 1: ever been passed. When you consider that they're going to 428 00:26:03,080 --> 00:26:07,719 Speaker 1: pass an HFC HFC phase down, which will you know, uh, 429 00:26:08,040 --> 00:26:11,320 Speaker 1: which has been supported by both industry and environmental groups 430 00:26:11,359 --> 00:26:14,879 Speaker 1: as well as Republicans and Democrats. That will have the 431 00:26:14,920 --> 00:26:18,800 Speaker 1: equivalent of about half a degree celsius of warming UH 432 00:26:19,320 --> 00:26:22,800 Speaker 1: removed from the atmosphere if you implement this phase down. 433 00:26:22,880 --> 00:26:26,520 Speaker 1: So that's one major piece of of of climate legislation. 434 00:26:26,600 --> 00:26:28,560 Speaker 1: On the other hand, you have UM a bunch of 435 00:26:28,680 --> 00:26:30,960 Speaker 1: tax and sentence that are going to be extended for 436 00:26:31,080 --> 00:26:34,560 Speaker 1: wind and solar and off shore um in a number 437 00:26:34,640 --> 00:26:37,440 Speaker 1: of tax credits for bio fuels and things like that. 438 00:26:37,560 --> 00:26:40,600 Speaker 1: And finally, you know, you have a whole host of 439 00:26:40,760 --> 00:26:43,720 Speaker 1: energy provisions that were part of the Murkowski bill that 440 00:26:43,880 --> 00:26:46,040 Speaker 1: was set for February when it kind of blew up 441 00:26:46,080 --> 00:26:48,440 Speaker 1: on the floor because of a disagreement over that that 442 00:26:48,560 --> 00:26:51,920 Speaker 1: same HFC bill earlier that I mentioned, But you know 443 00:26:52,040 --> 00:26:54,280 Speaker 1: that's going to have provisions for the Use It Act, 444 00:26:54,320 --> 00:26:57,800 Speaker 1: which is a bill aimed at CCS carbon capture and 445 00:26:57,840 --> 00:27:01,840 Speaker 1: sequestration issues. It's going to be UH aimed at American 446 00:27:01,880 --> 00:27:04,960 Speaker 1: innovation UH you know, the kind of technologies that you 447 00:27:05,200 --> 00:27:08,680 Speaker 1: that are beyond just UH tests, but trying to drive 448 00:27:08,760 --> 00:27:12,240 Speaker 1: those innovative technologies to commercial development. It's gonna have water 449 00:27:12,320 --> 00:27:14,440 Speaker 1: resources development a lot of other things in it like 450 00:27:14,520 --> 00:27:16,840 Speaker 1: that that really has so it's become kind of a 451 00:27:16,920 --> 00:27:19,639 Speaker 1: catch all on on energy issues. Frank, to follow up 452 00:27:19,680 --> 00:27:23,760 Speaker 1: with you here, Adam alluded to Democrats not being able 453 00:27:23,840 --> 00:27:26,639 Speaker 1: to get the state and local aid that they had 454 00:27:26,680 --> 00:27:31,399 Speaker 1: originally wanted. Republicans were unable to get the liability protections. 455 00:27:31,480 --> 00:27:34,520 Speaker 1: Do you think this now becomes a leverage point for 456 00:27:34,960 --> 00:27:37,879 Speaker 1: Senate Majority Leader Mitch McConnell, even if it's a split 457 00:27:38,000 --> 00:27:41,040 Speaker 1: Senate where he in the next round of stimulus, when 458 00:27:41,080 --> 00:27:44,080 Speaker 1: President elect Biden is sworn in and tries to push 459 00:27:44,160 --> 00:27:48,520 Speaker 1: through another economic relief package, that the liability protections will 460 00:27:48,560 --> 00:27:51,600 Speaker 1: be a Republican leverage point. Well, I think for sure, Kevi. 461 00:27:51,680 --> 00:27:53,480 Speaker 1: I mean, and I think that's also what the Democrats 462 00:27:53,560 --> 00:27:55,880 Speaker 1: have done with. I think the state and local tax 463 00:27:56,000 --> 00:27:58,320 Speaker 1: issue too. It's it's unfortunate that both of those could 464 00:27:58,359 --> 00:28:02,680 Speaker 1: not be in because they're important to achieving um. You know. 465 00:28:02,880 --> 00:28:05,520 Speaker 1: And on the on the business side, some some certainty 466 00:28:05,640 --> 00:28:08,000 Speaker 1: as to as to how you will be treated, uh, 467 00:28:08,720 --> 00:28:12,960 Speaker 1: in response to COVID issues that are that are facing businesses. 468 00:28:13,200 --> 00:28:14,440 Speaker 1: On the same side, there are a lot of state 469 00:28:14,480 --> 00:28:16,760 Speaker 1: and local issues that there there's a lot of pressure. 470 00:28:17,080 --> 00:28:19,040 Speaker 1: So I think both of them see that as an 471 00:28:19,080 --> 00:28:22,000 Speaker 1: opportunity or building block to start the next round. And 472 00:28:22,080 --> 00:28:23,880 Speaker 1: in my mind, that next round is going to take 473 00:28:24,240 --> 00:28:27,560 Speaker 1: a big, big level of infrastructure focus, which will you know, 474 00:28:27,680 --> 00:28:29,920 Speaker 1: have a green tint to it as well. And you 475 00:28:30,000 --> 00:28:32,520 Speaker 1: know you've got a lot of We've done that before 476 00:28:32,680 --> 00:28:35,920 Speaker 1: ten years ago, when Obama was there with Joe Biden, 477 00:28:36,000 --> 00:28:38,320 Speaker 1: when we when we came out of financial crisis in 478 00:28:38,360 --> 00:28:40,680 Speaker 1: two thousand and eight. I think you're gonna see a 479 00:28:40,800 --> 00:28:44,240 Speaker 1: lot of opportunities for common ground between Republicans and Democrats 480 00:28:44,280 --> 00:28:46,920 Speaker 1: when you dig into that infrastructure piece and the state 481 00:28:47,000 --> 00:28:50,800 Speaker 1: and local taxes and the liability piece will will will 482 00:28:50,840 --> 00:28:53,360 Speaker 1: be part of it, I think well, and no doubt 483 00:28:53,640 --> 00:28:55,600 Speaker 1: in terms of what we're gonna hear coming up from 484 00:28:55,680 --> 00:28:59,160 Speaker 1: my interview earlier today with Congressman Dusty Johnson, who's a 485 00:29:00,040 --> 00:29:02,520 Speaker 1: public and from South Dakota member of the Problem Solvers 486 00:29:02,600 --> 00:29:05,320 Speaker 1: Caucus Adam Hodge, I mean, he was really optimistic about 487 00:29:05,320 --> 00:29:09,960 Speaker 1: the potential for more bipartisanship getting done, especially in a 488 00:29:10,040 --> 00:29:13,440 Speaker 1: divided government, on many of the wonkier issues that maybe 489 00:29:13,440 --> 00:29:16,600 Speaker 1: aren't driving the conversations on on the cable networks, but 490 00:29:16,800 --> 00:29:20,200 Speaker 1: really are impactful for Wall Street at Main Street about 491 00:29:20,240 --> 00:29:23,080 Speaker 1: thirty seconds. Adam, No, I think that's right. And what 492 00:29:23,200 --> 00:29:26,040 Speaker 1: you've heard from Vice President Biden, the President ELEC. Biden 493 00:29:26,120 --> 00:29:28,600 Speaker 1: is that this is just the beginning and his whole 494 00:29:28,680 --> 00:29:30,680 Speaker 1: theory of the cases that we can get back to 495 00:29:31,560 --> 00:29:35,320 Speaker 1: bipartisan agreements that actually get things done and help the 496 00:29:35,360 --> 00:29:38,480 Speaker 1: American people. So I think, Um, it's in a down payment. 497 00:29:38,840 --> 00:29:41,840 Speaker 1: It's certainly temporary, but the hope is I think I 498 00:29:42,000 --> 00:29:45,720 Speaker 1: agree with um, with Kevin Frank, that we can we 499 00:29:45,760 --> 00:29:49,800 Speaker 1: can actually get more of this type of letters lading 500 00:29:49,840 --> 00:29:52,760 Speaker 1: done and once President ele Biden this warning. I don't 501 00:29:52,800 --> 00:29:54,400 Speaker 1: know if any of you got to listen to Paul 502 00:29:54,480 --> 00:29:56,720 Speaker 1: McCartney's new album over the weekend, but I'll let you 503 00:29:56,760 --> 00:29:59,080 Speaker 1: listen to a little bit of it here. The song 504 00:29:59,200 --> 00:30:01,480 Speaker 1: that I liked to would find my way off of 505 00:30:01,560 --> 00:30:03,840 Speaker 1: McCartney three much more. Coming up next, we talk about 506 00:30:03,880 --> 00:30:07,000 Speaker 1: the Central Bank. I'm Kevin Cerelli. You're listening to Bloomberg 507 00:30:07,120 --> 00:30:31,600 Speaker 1: Night and nine one Give Give. I'm Kevin Cereli, chief 508 00:30:31,680 --> 00:30:37,080 Speaker 1: Washington correspondent for Bloomberg Television and for Bloomberg Radio. Wishing 509 00:30:37,200 --> 00:30:41,000 Speaker 1: you and your family's a very safe, happy, and yes 510 00:30:41,120 --> 00:30:45,680 Speaker 1: healthy holiday season this week. Joining me on the All 511 00:30:45,760 --> 00:30:49,480 Speaker 1: Star panel, Frank Massano, partner at brace Well's Policy Resolution Group, 512 00:30:49,720 --> 00:30:54,000 Speaker 1: Adam Hodge, senior vice president at Ariel Investments, and of 513 00:30:54,080 --> 00:30:58,800 Speaker 1: course a former Obama Treasury Department official, Adam. I want 514 00:30:58,840 --> 00:31:03,240 Speaker 1: to sides up the personality thodder that has been in 515 00:31:03,360 --> 00:31:05,680 Speaker 1: some of the press over the past couple of the 516 00:31:05,760 --> 00:31:09,280 Speaker 1: weeks with regards to if FED Chairman j Powell's getting 517 00:31:09,280 --> 00:31:12,840 Speaker 1: along with Secretary Manution and and all of that back 518 00:31:12,880 --> 00:31:14,280 Speaker 1: and forth. And I want to bring it to the 519 00:31:14,360 --> 00:31:19,160 Speaker 1: policy with the FED lending facility programs and the funding 520 00:31:19,920 --> 00:31:23,840 Speaker 1: that has been an issue here. And the senator who 521 00:31:24,000 --> 00:31:28,160 Speaker 1: quite honestly is really driving this is Senator Pat Toomey, 522 00:31:28,680 --> 00:31:31,960 Speaker 1: a Republican from Pennsylvania, and while he has said publicly 523 00:31:32,000 --> 00:31:36,600 Speaker 1: that he will not be up for reelection, he is 524 00:31:36,640 --> 00:31:40,160 Speaker 1: in line if Republicans hold the Senate majority, to be 525 00:31:41,240 --> 00:31:44,720 Speaker 1: the Senate Banking Committee Chairman, which of course would have 526 00:31:44,880 --> 00:31:50,600 Speaker 1: oversight over the confirmation process of Janet Yellen, the former 527 00:31:50,680 --> 00:31:53,200 Speaker 1: FED chairwoman who President elect Biden is tapped to be 528 00:31:53,240 --> 00:31:58,120 Speaker 1: Treasury Secretary. I give you all that backstory, folks, because 529 00:31:58,760 --> 00:32:01,840 Speaker 1: the FED lending facil ailities program that was in the 530 00:32:02,520 --> 00:32:08,400 Speaker 1: last round of massive economic stimulus had about four hundred 531 00:32:08,440 --> 00:32:13,480 Speaker 1: plus billion dollars worth of money left over. They wanted 532 00:32:13,520 --> 00:32:17,280 Speaker 1: to keep it for their FED lending facilities. The Republicans, 533 00:32:18,440 --> 00:32:22,760 Speaker 1: backed by too me another mccott leader McConnell secretary minution, 534 00:32:23,440 --> 00:32:26,200 Speaker 1: we're urging that that money be returned to pay for 535 00:32:26,400 --> 00:32:30,760 Speaker 1: the nine hundred billion dollars worth of funds that they've 536 00:32:30,800 --> 00:32:34,280 Speaker 1: now since agreed on. I spoke with a couple of 537 00:32:34,360 --> 00:32:38,840 Speaker 1: staffers earlier today, senior staffers in Senator Toomey's office, Adam Hodge, 538 00:32:39,360 --> 00:32:42,320 Speaker 1: and what they told me was they were nervous that 539 00:32:42,480 --> 00:32:45,560 Speaker 1: if they didn't get this language in this round of 540 00:32:45,600 --> 00:32:50,640 Speaker 1: economic stimulus, that the FED, as a lender of last resort, 541 00:32:51,280 --> 00:32:55,240 Speaker 1: would become a lender of first resort. What is the 542 00:32:55,360 --> 00:33:01,200 Speaker 1: democratic perspective and likely Secretary Yellin's perspect active on this issue. 543 00:33:02,920 --> 00:33:08,760 Speaker 1: I think the biggest concern was about tying Vice President 544 00:33:08,840 --> 00:33:13,920 Speaker 1: Biden and President Biden and Secretary nominee Yalen's hands to 545 00:33:14,040 --> 00:33:18,800 Speaker 1: respond to a future crisis. And I think what really 546 00:33:19,800 --> 00:33:21,520 Speaker 1: got people up in arms is that it seemed like 547 00:33:21,640 --> 00:33:25,120 Speaker 1: also center to me, moved the goalpost a bit from 548 00:33:25,200 --> 00:33:29,920 Speaker 1: his earlier position on UM whether the legislation, whether the 549 00:33:29,960 --> 00:33:33,640 Speaker 1: Fed and Treasure would be able to UM to extend 550 00:33:34,320 --> 00:33:38,240 Speaker 1: UH lending to state and local governments and small businesses 551 00:33:38,880 --> 00:33:41,720 Speaker 1: in the new government to just barring their ability to 552 00:33:41,880 --> 00:33:46,040 Speaker 1: do that full stop. And so that was the real fear, 553 00:33:46,080 --> 00:33:51,360 Speaker 1: and it seemed a bit so pennywise and pound foolish 554 00:33:51,440 --> 00:33:55,120 Speaker 1: to help limit the program and the authority for the 555 00:33:55,200 --> 00:33:57,240 Speaker 1: FED that helped prevent us from going into a great 556 00:33:57,240 --> 00:34:00,360 Speaker 1: depression in the first place. And so we should be 557 00:34:00,440 --> 00:34:03,240 Speaker 1: trying to go the opposite way and find smart solutions 558 00:34:03,640 --> 00:34:07,120 Speaker 1: that help state and local governments and small businesses get 559 00:34:07,160 --> 00:34:10,640 Speaker 1: through this pandemic and in the future crisis be able 560 00:34:10,680 --> 00:34:13,480 Speaker 1: to step in and help those folks stay aflow. So 561 00:34:13,719 --> 00:34:16,360 Speaker 1: one of the so what you're essentially saying is the 562 00:34:16,560 --> 00:34:21,919 Speaker 1: clone clause that Republicans pushed for in this nine plus 563 00:34:22,280 --> 00:34:29,120 Speaker 1: billion dollar package. It restricts the incoming administration from being 564 00:34:29,239 --> 00:34:36,160 Speaker 1: able to create replicate FED lending facility programs correct UM. 565 00:34:36,760 --> 00:34:40,080 Speaker 1: And so as a result of that, Democrats, what I'm 566 00:34:40,160 --> 00:34:43,640 Speaker 1: gleaning from you, Adam had viewed that as a potential 567 00:34:43,800 --> 00:34:48,960 Speaker 1: ability to pay for a to state and local governments. 568 00:34:49,080 --> 00:34:53,600 Speaker 1: Correct that that the FED could lend money to stay 569 00:34:53,640 --> 00:34:57,120 Speaker 1: in state and local governments. Correct, And Um, I think 570 00:34:57,440 --> 00:34:59,319 Speaker 1: you look at the whole we were just talking about 571 00:34:59,360 --> 00:35:03,320 Speaker 1: with state local there's clearly a need and there's for 572 00:35:03,719 --> 00:35:07,080 Speaker 1: the state local governments are laying off tens of thousands 573 00:35:07,080 --> 00:35:11,440 Speaker 1: of Americans across the country. It is a hurting our 574 00:35:11,480 --> 00:35:14,239 Speaker 1: ability to recover from the crisis. We should be thinking 575 00:35:14,320 --> 00:35:17,960 Speaker 1: about ways and thinking creatively about ways that we can 576 00:35:18,040 --> 00:35:23,000 Speaker 1: help those folks UM stay afloat and keep those books employed. 577 00:35:23,200 --> 00:35:26,400 Speaker 1: We're talking about teachers, first responders, the folks who were 578 00:35:26,440 --> 00:35:29,320 Speaker 1: really on the front line of this this crisis. Rank Massano, 579 00:35:29,440 --> 00:35:33,239 Speaker 1: is this all just financial services in the wank weeds? Well, look, 580 00:35:33,280 --> 00:35:36,400 Speaker 1: I think talking about yeah, to me, you know this 581 00:35:36,600 --> 00:35:39,160 Speaker 1: is this is to me and some of the more 582 00:35:39,239 --> 00:35:43,160 Speaker 1: conservative members UM trying to set guard rails for where 583 00:35:43,280 --> 00:35:45,399 Speaker 1: we may go in the next round. In the next round, 584 00:35:45,719 --> 00:35:49,759 Speaker 1: I think what we've seen is people trying in an emergency. 585 00:35:50,520 --> 00:35:53,640 Speaker 1: Earlier and early on the first round, certainly an emergency. 586 00:35:53,719 --> 00:35:56,560 Speaker 1: You could tell that they all bets were off on 587 00:35:56,880 --> 00:35:59,600 Speaker 1: on where we were going. Hardly anybody was raising concerns 588 00:35:59,600 --> 00:36:01,920 Speaker 1: about the costs because we were in such desperate states. 589 00:36:02,320 --> 00:36:06,480 Speaker 1: We're still in a challenging environment of very challenging environment, 590 00:36:06,520 --> 00:36:08,680 Speaker 1: and you know, who knows if we're coming out of 591 00:36:08,719 --> 00:36:10,879 Speaker 1: it yet or not. But I do think what you're 592 00:36:10,920 --> 00:36:15,759 Speaker 1: seeing here is some members just trying to make sure 593 00:36:15,840 --> 00:36:18,840 Speaker 1: that money stays in silos and that we don't start 594 00:36:19,080 --> 00:36:21,840 Speaker 1: using it for other purposes, and basically just getting some 595 00:36:21,960 --> 00:36:25,320 Speaker 1: guardrails on the process so that you know, when we 596 00:36:25,440 --> 00:36:28,279 Speaker 1: come back to this the next time around, those you know, 597 00:36:28,360 --> 00:36:32,040 Speaker 1: those those moneys haven't been spread all over into other places. Well. 598 00:36:32,120 --> 00:36:34,959 Speaker 1: And it was quite remarkable, I mean, just to see 599 00:36:35,880 --> 00:36:40,600 Speaker 1: former Fed Chairman Ben Bernankee to come out with the statement, uh, 600 00:36:40,760 --> 00:36:44,360 Speaker 1: and in which he really wanted to make sure that 601 00:36:44,800 --> 00:36:47,840 Speaker 1: there wasn't anything that was threatening the federal reserves independence. 602 00:36:47,880 --> 00:36:51,520 Speaker 1: I mean, so many top former FED officials like Bernanke 603 00:36:51,719 --> 00:36:54,000 Speaker 1: and Yelling, who has now of course been tapped for 604 00:36:54,200 --> 00:36:57,520 Speaker 1: democratic administration. So it's looking at it through much more 605 00:36:57,560 --> 00:37:02,719 Speaker 1: of a political prism, but largely UH, independent individuals coming 606 00:37:02,760 --> 00:37:05,120 Speaker 1: out weighing in on this is something out of Hodge 607 00:37:05,160 --> 00:37:07,839 Speaker 1: that you know from your time a treasury is rather 608 00:37:07,960 --> 00:37:11,800 Speaker 1: unheard of it is, and I think there's anything that 609 00:37:11,920 --> 00:37:17,440 Speaker 1: that threatens the feds independence rightly gets people nervous and concerned. 610 00:37:17,840 --> 00:37:21,000 Speaker 1: I think where they ended up with the compromise, while 611 00:37:21,239 --> 00:37:23,560 Speaker 1: certainly not where Democrats would would like to be, I 612 00:37:23,600 --> 00:37:25,320 Speaker 1: think we would they would like to make sure that 613 00:37:25,400 --> 00:37:28,000 Speaker 1: the Fed and Treasury has the authority and the flexibility 614 00:37:28,560 --> 00:37:32,720 Speaker 1: to respond to the future weakenings in the crisis, especially 615 00:37:32,760 --> 00:37:35,560 Speaker 1: as you've seen the economic data the last couple of weeks. 616 00:37:35,840 --> 00:37:39,600 Speaker 1: It's brutal. We're really on looking staring into the abysses 617 00:37:39,680 --> 00:37:42,280 Speaker 1: a little bit, and so anything that sort of ties 618 00:37:42,440 --> 00:37:45,720 Speaker 1: Treasury and the Fed's ability to respond to the future 619 00:37:45,760 --> 00:37:49,040 Speaker 1: weakening in the crisis just seemed again just a little 620 00:37:49,080 --> 00:37:51,840 Speaker 1: bit bit bit foolish. And so um glad that we 621 00:37:52,320 --> 00:37:55,120 Speaker 1: are getting the deal, that it wasn't as as bad 622 00:37:55,160 --> 00:37:57,320 Speaker 1: as it could be. And and we'll see how the 623 00:37:57,360 --> 00:38:02,320 Speaker 1: new administration decides to work with Congress or working between 624 00:38:02,520 --> 00:38:04,560 Speaker 1: BED and Treasury trust solve the problem. All Right, we'll 625 00:38:04,640 --> 00:38:07,160 Speaker 1: leave it there for now. Coming up next, Congressman Dusty Johnson, 626 00:38:07,239 --> 00:38:16,040 Speaker 1: you're listening to Bloomberg. If I don't, if I'll wait 627 00:38:16,120 --> 00:38:19,200 Speaker 1: till it feels right, I'll be waiting my whole lot, 628 00:38:20,120 --> 00:38:23,279 Speaker 1: closing my eyes, and how we will go when you 629 00:38:23,400 --> 00:38:28,040 Speaker 1: see me if you need me. BA. That's the way 630 00:38:28,200 --> 00:38:35,080 Speaker 1: it was. That's day by stream. I'm Kevin's really chief 631 00:38:35,160 --> 00:38:40,479 Speaker 1: Washington correspondent for Bloomberg Television and for Bloomberg Radio. Gotta 632 00:38:40,480 --> 00:38:44,080 Speaker 1: give a shout out to my aunt Annette and my 633 00:38:44,239 --> 00:38:47,800 Speaker 1: mother back in Delco, both of whom sent me holiday 634 00:38:47,840 --> 00:38:52,399 Speaker 1: cookies as I called out for see, you get back 635 00:38:52,520 --> 00:38:55,200 Speaker 1: what you what you seek, you attract what you put 636 00:38:55,280 --> 00:38:58,279 Speaker 1: out right. So I got my my Christmas cookies from home. 637 00:38:58,800 --> 00:39:01,920 Speaker 1: I'm very grateful. I've alread eating them all um over 638 00:39:02,000 --> 00:39:06,000 Speaker 1: the weekend. UH and other news. We should also note 639 00:39:06,080 --> 00:39:09,760 Speaker 1: that I finished The Crown on Netflix, the new season, 640 00:39:10,040 --> 00:39:14,120 Speaker 1: and I was reading The Washingtonian and Megan Markel and 641 00:39:14,239 --> 00:39:18,640 Speaker 1: Prince Harry didn't take Washingtonians suggestion that they should move 642 00:39:18,719 --> 00:39:22,160 Speaker 1: to d C. The Washingtonians reports, but the Duke and 643 00:39:22,320 --> 00:39:25,560 Speaker 1: Duchess of Sussex will do the next best thing there. 644 00:39:25,800 --> 00:39:31,520 Speaker 1: Art Well Foundation will fund for community relief centers for 645 00:39:31,680 --> 00:39:39,840 Speaker 1: Chef Jose Andreas's World Central Kitchen organization, Bloomberg reported on Sunday. 646 00:39:40,080 --> 00:39:45,360 Speaker 1: So Megan and Harry are teaming up with chef Jose Andreas. 647 00:39:46,200 --> 00:39:48,960 Speaker 1: It's almost as if the stars are aligning. Space dot 648 00:39:49,000 --> 00:39:52,760 Speaker 1: Com says they are aligning. Watch the winter Solstice Great 649 00:39:52,840 --> 00:39:58,320 Speaker 1: Conjunction of Jupiter and Saturn tonight, where Jupiter and Saturn 650 00:39:58,360 --> 00:40:02,040 Speaker 1: will align in the night sky in an event astronomers 651 00:40:02,080 --> 00:40:05,719 Speaker 1: called the Great Conjunction, and you can watch it online 652 00:40:06,080 --> 00:40:09,160 Speaker 1: uh or with a telescope. Just go to NASA dot 653 00:40:09,239 --> 00:40:11,400 Speaker 1: gov for all of that. The stars are aligning on 654 00:40:11,480 --> 00:40:14,439 Speaker 1: Capitol Hill. I'm trying, folks, I'm trying to fill some time. 655 00:40:15,040 --> 00:40:18,440 Speaker 1: The stars are aligning on Capitol Hill where lawmakers have 656 00:40:18,560 --> 00:40:21,680 Speaker 1: come together, get together for a nine hundred billion dollar 657 00:40:23,200 --> 00:40:26,400 Speaker 1: relief package. And that's where I began my conversation earlier 658 00:40:26,440 --> 00:40:29,880 Speaker 1: today with Congressman Dusty Johnson, a Republican from South Dakota. 659 00:40:29,920 --> 00:40:33,520 Speaker 1: I asked him, point blank, what's in the bill. Well, 660 00:40:33,560 --> 00:40:35,560 Speaker 1: there's a lot of stuff in it, because, frankly, our 661 00:40:35,600 --> 00:40:38,040 Speaker 1: country needs some help. If we want to keep the 662 00:40:38,120 --> 00:40:40,439 Speaker 1: businesses open, if we want to keep the schools open, 663 00:40:40,960 --> 00:40:43,040 Speaker 1: if we want to increase our testing because we're in 664 00:40:43,080 --> 00:40:44,840 Speaker 1: nowhere near the numbers we need to be, and if 665 00:40:44,880 --> 00:40:47,279 Speaker 1: we want to get that vaccine out there, we're gonna 666 00:40:47,320 --> 00:40:49,920 Speaker 1: need to be working um as partners. I mean the 667 00:40:49,960 --> 00:40:53,319 Speaker 1: private sector, states, the federal government. Uh, this has nine 668 00:40:53,760 --> 00:40:55,560 Speaker 1: billion dollars that is going to help us get where 669 00:40:55,600 --> 00:40:59,000 Speaker 1: we need to go. Okay, So specifically, when I was 670 00:40:59,040 --> 00:41:01,320 Speaker 1: looking at the Meers and crunching the numbers on it 671 00:41:01,640 --> 00:41:04,360 Speaker 1: with our Bloomberg team, I mean, it looks like there's 672 00:41:04,480 --> 00:41:07,080 Speaker 1: been some compromise that you were able to reach. And 673 00:41:07,160 --> 00:41:09,080 Speaker 1: I know you're a member of course that the problem 674 00:41:09,120 --> 00:41:12,000 Speaker 1: Solvers Caucus. So especially as it relates to aid for 675 00:41:12,080 --> 00:41:15,160 Speaker 1: state and local governments, is there any aid going there 676 00:41:15,360 --> 00:41:18,279 Speaker 1: or is there aid being directed on the vaccination rolled 677 00:41:18,280 --> 00:41:21,640 Speaker 1: out front? Well, there is some dollars being sent to 678 00:41:21,719 --> 00:41:24,880 Speaker 1: state and local governments, you know, primarily the schools. I mean, 679 00:41:24,920 --> 00:41:27,720 Speaker 1: clearly schools are a major investment in most state governments. 680 00:41:28,000 --> 00:41:31,400 Speaker 1: There is not a broader state and local government aid package. 681 00:41:31,880 --> 00:41:37,000 Speaker 1: That plus a liability reforms for businesses were taken out. Frankly, 682 00:41:37,040 --> 00:41:38,880 Speaker 1: those were the two areas It was just hardest to 683 00:41:38,960 --> 00:41:42,160 Speaker 1: get the votes. The Democrats didn't like the liability to reform, 684 00:41:42,280 --> 00:41:45,239 Speaker 1: some Republicans didn't like the state and local That's not 685 00:41:45,400 --> 00:41:48,000 Speaker 1: to say that those issues won't be tackled. But they're 686 00:41:48,040 --> 00:41:50,040 Speaker 1: not going to be tackled as a part of this now, Kevin, 687 00:41:50,120 --> 00:41:53,359 Speaker 1: I just mentioned one more thing. It's remarkable how much 688 00:41:53,560 --> 00:41:56,759 Speaker 1: this bill that we're voting on today looks like the 689 00:41:56,840 --> 00:41:59,360 Speaker 1: package that I rolled out back in September as a 690 00:41:59,400 --> 00:42:01,560 Speaker 1: part of our bi partisan group, and I gave a 691 00:42:01,640 --> 00:42:04,239 Speaker 1: more remarkable how much it looks like the package that 692 00:42:04,400 --> 00:42:08,160 Speaker 1: eight Senators and eight House members including myself, unveiled just 693 00:42:08,239 --> 00:42:10,759 Speaker 1: a few weeks ago. Um, you know, we don't want 694 00:42:10,760 --> 00:42:13,120 Speaker 1: to counter chickens until they're hatched. But I mean this 695 00:42:13,400 --> 00:42:16,880 Speaker 1: is that, you know, I think our proposals showed what 696 00:42:17,040 --> 00:42:19,800 Speaker 1: the landing zone was going to be. Well, there's no question. 697 00:42:19,880 --> 00:42:22,480 Speaker 1: I mean, this was the basis the bipartisan consensus that 698 00:42:22,560 --> 00:42:25,000 Speaker 1: had emerged and the problem Solvers Caucus, without question of 699 00:42:25,080 --> 00:42:28,279 Speaker 1: really driving force beyond that. I'm looking at the at 700 00:42:28,320 --> 00:42:31,680 Speaker 1: the Bloomberg list here, fifteen billion dollars to reinstate payroll 701 00:42:31,719 --> 00:42:35,160 Speaker 1: reimbursements to airlines. A lot of the airline industry and 702 00:42:35,239 --> 00:42:39,680 Speaker 1: the transportation sector incredibly nervous about what it would mean 703 00:42:39,760 --> 00:42:41,759 Speaker 1: for them if they didn't have relief. So how will 704 00:42:41,800 --> 00:42:45,080 Speaker 1: that money be used? Yeah, very much like under the 705 00:42:45,160 --> 00:42:48,600 Speaker 1: Carre's Act. I mean, I think you saw that the airlines. Frankly, 706 00:42:48,680 --> 00:42:50,840 Speaker 1: they just didn't have anywhere near the kind of volume 707 00:42:50,880 --> 00:42:53,160 Speaker 1: they needed to stay upfloat. And you know, none of 708 00:42:53,239 --> 00:42:55,960 Speaker 1: us want to do any bailouts for large airlines, but 709 00:42:56,040 --> 00:42:59,400 Speaker 1: providing them some liquidity so that they can keep this 710 00:42:59,600 --> 00:43:02,239 Speaker 1: vital use of infrastructural and that makes sense. I mean, 711 00:43:02,280 --> 00:43:05,400 Speaker 1: that's fifteen billion. That is, you know, frankly peanuts compared 712 00:43:05,480 --> 00:43:08,799 Speaker 1: to the much larger investment we're making in small businesses 713 00:43:09,280 --> 00:43:12,520 Speaker 1: under things like the Paychecks Protection Program. But listen, we 714 00:43:12,760 --> 00:43:15,600 Speaker 1: we are going to get through COVID nineteen. And when 715 00:43:15,680 --> 00:43:18,320 Speaker 1: we get through it, we want the major components of 716 00:43:18,400 --> 00:43:21,600 Speaker 1: American infrastructure to be they're ready to get back to work. 717 00:43:22,080 --> 00:43:24,759 Speaker 1: Congressman Dusty Johnson's with us, and he is also a 718 00:43:24,840 --> 00:43:29,120 Speaker 1: member on the Committee of Education and Labor, including UH. 719 00:43:30,040 --> 00:43:32,839 Speaker 1: With regards to education, this for A bill would also 720 00:43:32,880 --> 00:43:36,160 Speaker 1: allocate money for schools. Where will that money be going? Yeah, 721 00:43:36,200 --> 00:43:38,400 Speaker 1: I mean, we've got eighty billion to schools, and it's 722 00:43:38,440 --> 00:43:42,000 Speaker 1: a mix of K twelve and higher education. It's also 723 00:43:42,080 --> 00:43:44,799 Speaker 1: got some dollars in there for childcare. You know, there 724 00:43:44,840 --> 00:43:47,719 Speaker 1: have been a number of studies six or seven that 725 00:43:47,840 --> 00:43:50,960 Speaker 1: have come out just in the last month about how 726 00:43:51,080 --> 00:43:54,120 Speaker 1: much better children learn in the classroom. Surely there are 727 00:43:54,239 --> 00:43:58,920 Speaker 1: some self selected students who thrive under a remote environment, 728 00:43:59,400 --> 00:44:01,680 Speaker 1: but the students are not like that, and we have 729 00:44:01,880 --> 00:44:05,560 Speaker 1: we are are seeing the very unfortunate reality that students 730 00:44:05,600 --> 00:44:09,440 Speaker 1: who are are learning remotely with e learning are falling behind. 731 00:44:10,160 --> 00:44:14,279 Speaker 1: This has serious repercussions, particularly for um you know some 732 00:44:14,600 --> 00:44:17,920 Speaker 1: populations that are already disadvantaged from a socio economic or 733 00:44:18,040 --> 00:44:20,640 Speaker 1: educational perspective. So we want to make sure the schools 734 00:44:21,160 --> 00:44:24,839 Speaker 1: have what they need from a staff and perspective, air filtration, 735 00:44:25,000 --> 00:44:28,720 Speaker 1: protective equipment to the extent that they can reopen safely. 736 00:44:29,040 --> 00:44:32,719 Speaker 1: They absolutely should do so. Congressman Dusty Johnson, a Republican 737 00:44:32,840 --> 00:44:35,880 Speaker 1: from South Dakota, grew up in a large working class 738 00:44:35,920 --> 00:44:38,719 Speaker 1: family in central South Dakota. These issues important to you. 739 00:44:39,440 --> 00:44:42,480 Speaker 1: You are previously the president and board member of the 740 00:44:42,560 --> 00:44:46,239 Speaker 1: Abbott House, which serves abused and neglected children. I mean, 741 00:44:46,320 --> 00:44:53,440 Speaker 1: the socio economic distance really between what kids have been 742 00:44:53,840 --> 00:44:56,359 Speaker 1: forced to how the kids have been forced to learn 743 00:44:56,440 --> 00:45:00,160 Speaker 1: this year, it's really remarkable. It's so it's tragic. Well, 744 00:45:00,200 --> 00:45:02,680 Speaker 1: and I think that's why you also see a substantial 745 00:45:02,880 --> 00:45:06,920 Speaker 1: investment in broadband, both from an affordability perspective and an 746 00:45:06,960 --> 00:45:10,520 Speaker 1: infrastructure perspective. It wasn't the homework gap is for real. 747 00:45:11,120 --> 00:45:14,120 Speaker 1: And I see it because before I came to Congress, 748 00:45:14,160 --> 00:45:15,880 Speaker 1: I spent four years as a co owner of a 749 00:45:16,560 --> 00:45:19,160 Speaker 1: broadband engineering firm. We had a few unted employees, and 750 00:45:19,560 --> 00:45:22,439 Speaker 1: we did projects in forty states and you could see 751 00:45:23,000 --> 00:45:26,680 Speaker 1: the potential unlocked in a community for businesses and families 752 00:45:26,719 --> 00:45:29,680 Speaker 1: when you had connectivity. And this is an area where 753 00:45:29,719 --> 00:45:31,320 Speaker 1: I think we we need to oper our game in 754 00:45:31,360 --> 00:45:32,920 Speaker 1: this country. Well, and do you think let me let 755 00:45:32,960 --> 00:45:34,800 Speaker 1: me follow up on this, because based on your experience, 756 00:45:34,840 --> 00:45:37,760 Speaker 1: I mean representing a more rural part of the country 757 00:45:38,000 --> 00:45:42,160 Speaker 1: or more rural communities, that's something that that that cities 758 00:45:42,200 --> 00:45:44,680 Speaker 1: have in common. Is that need for broadband that and 759 00:45:45,040 --> 00:45:48,080 Speaker 1: underserved communities, whether it's because of rural or whether it's 760 00:45:48,120 --> 00:45:50,279 Speaker 1: because other parts of the cities that are that are 761 00:45:50,360 --> 00:45:53,440 Speaker 1: often unfortunately overlooked. Is that is that a way that 762 00:45:53,840 --> 00:45:56,800 Speaker 1: maybe there could be strange political bedfellows, so to speak, 763 00:45:57,000 --> 00:46:00,440 Speaker 1: on opposite sides of the aisle. Absolutely, there are so 764 00:46:00,680 --> 00:46:05,120 Speaker 1: many more similarities between you know, rural poverty and urban 765 00:46:05,200 --> 00:46:10,800 Speaker 1: poverty than we normally uh associate with those things. And 766 00:46:11,280 --> 00:46:15,040 Speaker 1: you know absolutely, I mean both struggle with transportation, full 767 00:46:15,120 --> 00:46:19,200 Speaker 1: struggle with you know, employment opportunities closed by both, struggle 768 00:46:19,280 --> 00:46:23,200 Speaker 1: with being in food deserts, full struggle with broadband connectivity. 769 00:46:23,480 --> 00:46:26,800 Speaker 1: And yes, urban poverty can look different than rural poverty, 770 00:46:27,239 --> 00:46:31,600 Speaker 1: but the underlying causes and the impacts and the challenges 771 00:46:31,640 --> 00:46:35,080 Speaker 1: to the lives of those children are so similar. Do 772 00:46:35,200 --> 00:46:38,120 Speaker 1: you think that even the liability protections wasn't included in 773 00:46:38,239 --> 00:46:40,800 Speaker 1: this go around? Congressman Johnson that it might be a 774 00:46:40,880 --> 00:46:43,560 Speaker 1: point of Republican leverage depending on the outcome of Georgia, 775 00:46:44,080 --> 00:46:47,399 Speaker 1: uh in the in the president elects first one days, 776 00:46:47,400 --> 00:46:51,120 Speaker 1: if he wants to move another economic relief package. Well, 777 00:46:51,239 --> 00:46:53,480 Speaker 1: I do think there is a ton of room for 778 00:46:53,600 --> 00:46:57,239 Speaker 1: common sense reform here. I mean, I think most reasonable 779 00:46:57,360 --> 00:47:01,120 Speaker 1: people understand that, particularly in the earliest days of COVID, 780 00:47:01,200 --> 00:47:05,080 Speaker 1: we were learning so much and that well intentioned employers 781 00:47:05,880 --> 00:47:08,200 Speaker 1: might not have done everything perfectly. To start with, there 782 00:47:08,239 --> 00:47:10,840 Speaker 1: may have been health care facilities, There may have been schools. 783 00:47:10,920 --> 00:47:14,160 Speaker 1: There may have been small businesses that that did their best, 784 00:47:14,320 --> 00:47:16,319 Speaker 1: as that had good faith efforts to try to keep 785 00:47:16,360 --> 00:47:20,440 Speaker 1: their students, their patients, their employees safe. Um. Now, we 786 00:47:20,480 --> 00:47:23,799 Speaker 1: don't want to protect anybody who has been grossling negligent. Um. 787 00:47:23,920 --> 00:47:26,600 Speaker 1: I mean, if you really were cavalier and reckless, then 788 00:47:26,680 --> 00:47:29,280 Speaker 1: let's hold you accountable. That's why we have a court system. 789 00:47:29,640 --> 00:47:32,239 Speaker 1: But particularly in those early days when we were, you know, 790 00:47:32,400 --> 00:47:34,319 Speaker 1: like the rest of the world, learning on the fly, 791 00:47:34,880 --> 00:47:39,000 Speaker 1: let's make sure we're not bankrupting small businesses because of 792 00:47:39,160 --> 00:47:43,719 Speaker 1: lawsuits when they were doing their best. That was my 793 00:47:43,880 --> 00:47:50,719 Speaker 1: interview earlier today with Congressman Dusty Johnson, a Republican. Here's 794 00:47:50,719 --> 00:47:53,879 Speaker 1: what I just learned from the sound on team while 795 00:47:53,920 --> 00:47:57,120 Speaker 1: we were playing that interview, folks, is that South Dakota 796 00:47:57,719 --> 00:48:01,480 Speaker 1: only has one congress person's seat. They only get one 797 00:48:01,560 --> 00:48:05,080 Speaker 1: congressional seat because the population. They are the only state 798 00:48:06,120 --> 00:48:12,520 Speaker 1: that has more Senators then elected congress people because of 799 00:48:12,560 --> 00:48:17,120 Speaker 1: the population. It's interesting Christie Noham was actually in office 800 00:48:17,280 --> 00:48:20,600 Speaker 1: before Congressman Dusty Johnson, and she is now the governor 801 00:48:21,120 --> 00:48:23,640 Speaker 1: of South Dakota, which and she is seen as a 802 00:48:23,800 --> 00:48:27,360 Speaker 1: as a rising Republican star. Governor Noham is uh in 803 00:48:27,560 --> 00:48:29,759 Speaker 1: that state as well. That's facts much more coming up 804 00:48:29,800 --> 00:48:32,319 Speaker 1: next with the panel, What's Next? I'm Kevin SURRELLI you're 805 00:48:32,360 --> 00:48:54,160 Speaker 1: listening to Bloomberg nine one. That's the way that's history done. 806 00:48:55,800 --> 00:49:09,799 Speaker 1: When I lose Tonight everything right, I'm Kevin cur really, 807 00:49:10,200 --> 00:49:14,880 Speaker 1: Chief Washington correspondent for Bloomberg Television and for Bloomberg Radio. 808 00:49:15,600 --> 00:49:20,719 Speaker 1: Bob Dylan winter Lude. I don't think that song gets 809 00:49:20,840 --> 00:49:24,600 Speaker 1: enough credit. Joining us for the panel. Frank Massano, partner 810 00:49:24,680 --> 00:49:27,759 Speaker 1: at brace Well's Policy Resolution Group. Adam Hodge, Senior vice 811 00:49:27,840 --> 00:49:31,200 Speaker 1: president at Aerial Investments, Adam, are you a winter Lude 812 00:49:31,200 --> 00:49:35,360 Speaker 1: Bob Dylan fan? I mean, if he just keeps hits 813 00:49:35,400 --> 00:49:40,120 Speaker 1: the catalog, unbelievable. You know, Well recently got into that 814 00:49:40,560 --> 00:49:45,520 Speaker 1: the new release from uh Dylan and Johnny Cash came. 815 00:49:45,560 --> 00:49:49,160 Speaker 1: I think it was last year. Yeah good. I got 816 00:49:49,239 --> 00:49:51,800 Speaker 1: to play Johnny Cash tomorrow. Frank Massano, are you a 817 00:49:51,840 --> 00:49:54,359 Speaker 1: winter Lude fan? By Bob Danan? You know I love 818 00:49:54,840 --> 00:49:57,439 Speaker 1: music like that, kind of out of the archives music, 819 00:49:57,480 --> 00:49:59,920 Speaker 1: no matter who it is. But as you know, I'm 820 00:50:00,000 --> 00:50:03,160 Speaker 1: a little bit more of a heavy guy right from 821 00:50:03,239 --> 00:50:07,239 Speaker 1: my Detroit the my Detroit roots and uh we're rock 822 00:50:07,320 --> 00:50:09,880 Speaker 1: and we're a rock and roll city, So you know, 823 00:50:09,960 --> 00:50:13,560 Speaker 1: I'm a ted nugent metallica type guy. So even though 824 00:50:13,600 --> 00:50:16,400 Speaker 1: I do like I do like going soft every now 825 00:50:16,440 --> 00:50:20,440 Speaker 1: and then, I just always gravitate back to the hard stuff. 826 00:50:21,200 --> 00:50:24,120 Speaker 1: The next time mull runs our soundboards for sound on, 827 00:50:24,560 --> 00:50:26,920 Speaker 1: the next time Frank's back on, we gotta play some 828 00:50:27,000 --> 00:50:30,879 Speaker 1: Metallica for him. Remind me rufal for the next time 829 00:50:30,920 --> 00:50:35,160 Speaker 1: Frank Christine Moroto just goes, We'll play and understand. All right, 830 00:50:35,239 --> 00:50:38,799 Speaker 1: it's time now for my favorite part of the show. 831 00:50:38,880 --> 00:50:40,880 Speaker 1: And and folks were rebranding, right it's the end of 832 00:50:40,960 --> 00:50:44,800 Speaker 1: the year. We're all about self improvement. It's twenties, just 833 00:50:44,840 --> 00:50:47,320 Speaker 1: a week left, and so we're gonna rename my favorite 834 00:50:47,320 --> 00:50:49,759 Speaker 1: part of the program from what's on your Radar? So 835 00:50:49,920 --> 00:50:52,600 Speaker 1: what's next? Because here a Bloomberg, we're all about what's next, 836 00:50:52,719 --> 00:50:55,120 Speaker 1: what's in the future. Tell me something that's coming, some 837 00:50:55,239 --> 00:50:58,239 Speaker 1: new information. So now I want the panel to tell 838 00:50:58,320 --> 00:51:02,160 Speaker 1: me what's next. Frank Massan know what's next. So right now, 839 00:51:02,239 --> 00:51:04,840 Speaker 1: keV I talked a little bit about the HFC legislation 840 00:51:04,960 --> 00:51:08,680 Speaker 1: that was passed um It's a significant, big climate bill 841 00:51:09,040 --> 00:51:12,080 Speaker 1: that will have a significant impact going forward. It's universally 842 00:51:12,120 --> 00:51:15,200 Speaker 1: supported by Republicans and Democrats. I think what we'll see 843 00:51:15,360 --> 00:51:19,560 Speaker 1: next is that there there is a treaty. We actually 844 00:51:19,680 --> 00:51:22,640 Speaker 1: got the cart before the horse on this one. Usually 845 00:51:22,760 --> 00:51:26,200 Speaker 1: we ratify the treaty and then we come back and 846 00:51:26,719 --> 00:51:31,040 Speaker 1: pass implementing legislation. This time because the President wasn't too 847 00:51:31,120 --> 00:51:34,440 Speaker 1: keen on the treaty which was signed in by the 848 00:51:34,480 --> 00:51:38,600 Speaker 1: Obama administration. Again with this universal supportive industry and environmentalists 849 00:51:38,640 --> 00:51:42,080 Speaker 1: and things like that. UM, we'll we'll see. I think 850 00:51:42,160 --> 00:51:46,160 Speaker 1: Biden submit that treaty alongside his talk about going and 851 00:51:46,239 --> 00:51:49,719 Speaker 1: re engaging on Paris. So that's really what's what's next 852 00:51:49,800 --> 00:51:51,800 Speaker 1: for me. We're going to see that. Uh. You know, 853 00:51:51,880 --> 00:51:54,960 Speaker 1: we have to approve that treaty, UH to you know, 854 00:51:55,120 --> 00:51:58,439 Speaker 1: to stay involved in this issue internationally in global book 855 00:51:58,520 --> 00:52:02,560 Speaker 1: on Global Competitiveness Nature and uh an industry is ready 856 00:52:02,600 --> 00:52:04,440 Speaker 1: to do it, Republicans are ready to do it, and 857 00:52:04,800 --> 00:52:07,200 Speaker 1: Democrats are ready to do it along with environmentalists. So 858 00:52:07,680 --> 00:52:10,400 Speaker 1: it's a it's a it's a common ground thing, and 859 00:52:10,480 --> 00:52:11,960 Speaker 1: I think we're going to see it early on in 860 00:52:12,000 --> 00:52:17,600 Speaker 1: the next and the next administration. Let me follow up here, justified, May, 861 00:52:18,239 --> 00:52:23,919 Speaker 1: what's the expectation from your sector? Frank Massano on when 862 00:52:24,000 --> 00:52:27,400 Speaker 1: a Biden administration the timetable for the climate for the 863 00:52:27,440 --> 00:52:31,160 Speaker 1: Paris Climate Accords. Well, you know, re entering the Paris 864 00:52:31,239 --> 00:52:34,600 Speaker 1: Climate Accord isn't a big deal. It Um, it's a 865 00:52:34,640 --> 00:52:38,279 Speaker 1: big deal symbolically, it's not a big deal action wise, right. Um. 866 00:52:38,680 --> 00:52:42,560 Speaker 1: We many many Republicans, I think we're disappointed the President 867 00:52:42,640 --> 00:52:45,480 Speaker 1: pulled us out of the Climate Accord because it was 868 00:52:45,560 --> 00:52:48,280 Speaker 1: a way to engage the international community and stay involved 869 00:52:48,680 --> 00:52:51,759 Speaker 1: in you know what are always contentious discussions. So I 870 00:52:51,800 --> 00:52:55,040 Speaker 1: think on day one he will rejoin. The question is 871 00:52:55,400 --> 00:52:57,960 Speaker 1: what does that mean and what does it do in 872 00:52:58,160 --> 00:53:00,399 Speaker 1: terms of the policy moves that we may And that's 873 00:53:00,400 --> 00:53:03,279 Speaker 1: a longer term question and probably one that won't be 874 00:53:03,360 --> 00:53:05,560 Speaker 1: resolved early on because we're going to be focused on 875 00:53:06,080 --> 00:53:09,360 Speaker 1: infrastructure and green infrastructure. We're going to be focused on recovery, 876 00:53:09,560 --> 00:53:11,360 Speaker 1: and we're going to be focused on dealing with this 877 00:53:11,520 --> 00:53:14,759 Speaker 1: COVID challenge. So those three things really are priorities for 878 00:53:14,840 --> 00:53:18,879 Speaker 1: this administration, and I think it's gonna set back any 879 00:53:19,040 --> 00:53:23,000 Speaker 1: real significant action that we take to start moving beyond 880 00:53:23,160 --> 00:53:26,080 Speaker 1: just re entering the Paris engagement. I think you'll see 881 00:53:26,160 --> 00:53:29,839 Speaker 1: something sometime around December, when the u N usually has 882 00:53:29,880 --> 00:53:33,560 Speaker 1: their meetings. They're going to hopefully have another meeting in Glasgow, Scotland, 883 00:53:33,600 --> 00:53:36,160 Speaker 1: which they did not have this year, and I think 884 00:53:36,239 --> 00:53:39,160 Speaker 1: that's probably where you'll start to see some more significant 885 00:53:39,520 --> 00:53:44,880 Speaker 1: movement forward. Fascinating UM. That's really interesting, especially the timetable, 886 00:53:45,120 --> 00:53:48,040 Speaker 1: and especially as as the world comes out of the pandemic, 887 00:53:48,120 --> 00:53:51,759 Speaker 1: as the vaccine begins to work and we all reach 888 00:53:51,800 --> 00:53:55,759 Speaker 1: her immunity. Once there's a global meetings are back on 889 00:53:55,920 --> 00:54:01,680 Speaker 1: the calendar. Adam, what's next, basically what's next for a 890 00:54:01,920 --> 00:54:06,640 Speaker 1: whole I think it's just an increase push around board diversity. 891 00:54:06,800 --> 00:54:10,680 Speaker 1: You saw some news last last couple weeks from NAZDAC 892 00:54:10,760 --> 00:54:13,480 Speaker 1: about UM how they're looking to help help to their 893 00:54:13,840 --> 00:54:17,320 Speaker 1: companies optify. There's been a lot more attention on this 894 00:54:17,440 --> 00:54:23,920 Speaker 1: issue after George Floyd and the reckoning over the summer, 895 00:54:24,680 --> 00:54:27,879 Speaker 1: and I think you've seen some leadership also from from 896 00:54:27,880 --> 00:54:30,120 Speaker 1: Goldman Sachs a few other members in the financial sector 897 00:54:30,200 --> 00:54:31,839 Speaker 1: saying that they're not going to be part of any 898 00:54:32,280 --> 00:54:35,520 Speaker 1: I p O s that take any companies public if 899 00:54:35,520 --> 00:54:38,239 Speaker 1: they don't have diverse boards, and so there's a real 900 00:54:38,280 --> 00:54:40,000 Speaker 1: opportunity and I think you're going to see a lot 901 00:54:40,040 --> 00:54:43,560 Speaker 1: more leadership in corporate America, And I think, frankly, you'll 902 00:54:43,560 --> 00:54:47,480 Speaker 1: probably see a lot more leadership from the government, from 903 00:54:47,520 --> 00:54:53,799 Speaker 1: state and local and federal leaders trying to pass legislation 904 00:54:53,920 --> 00:54:59,239 Speaker 1: that encourages companies to have diverse boards. Um. And what 905 00:54:59,400 --> 00:55:02,640 Speaker 1: we've seen over time that companies that are more diverse, 906 00:55:02,719 --> 00:55:05,480 Speaker 1: that have more diverse boards, tend to outperform companies that 907 00:55:05,520 --> 00:55:08,400 Speaker 1: aren't diverse. And so UM, I think that's that's a 908 00:55:08,520 --> 00:55:10,960 Speaker 1: key opportunity and a key place where you'll see some 909 00:55:11,000 --> 00:55:12,920 Speaker 1: real girls change next year. Who do you think is 910 00:55:12,960 --> 00:55:18,399 Speaker 1: gonna be Commerce Secretary Adamage? Oh? Just between us, Yeah, 911 00:55:18,640 --> 00:55:21,239 Speaker 1: that's I'm kidding. Everyone's listening to our team. That was 912 00:55:21,560 --> 00:55:24,840 Speaker 1: a joke. That was That was a reporter joke that 913 00:55:25,160 --> 00:55:29,080 Speaker 1: the reporters always say that sources to suck me into things, 914 00:55:29,120 --> 00:55:32,480 Speaker 1: to give me all all that the gossip. I don't know. Um, 915 00:55:32,800 --> 00:55:35,840 Speaker 1: I think it'll be interesting to see who that that 916 00:55:35,920 --> 00:55:37,839 Speaker 1: pick is. But I think what you've seen so far 917 00:55:37,920 --> 00:55:40,200 Speaker 1: is that Biden it said he'd have one of the 918 00:55:40,239 --> 00:55:43,640 Speaker 1: most diverse cabinets in history, and that has certainly borne 919 00:55:43,640 --> 00:55:45,719 Speaker 1: itself out in the picks that he's made so far 920 00:55:45,920 --> 00:55:51,040 Speaker 1: so the most and there's rumors flying around CAP that 921 00:55:51,120 --> 00:55:53,719 Speaker 1: it may be a Republican that I don't know that's 922 00:55:53,760 --> 00:55:57,200 Speaker 1: a Republican. Based on my reporting, I think that. Okay, Frank, 923 00:55:57,239 --> 00:55:59,319 Speaker 1: I'm gonna I'm gonna love. Actually, let me ask the question. 924 00:56:00,160 --> 00:56:02,200 Speaker 1: Do you think that that is just a news cycle 925 00:56:02,360 --> 00:56:05,640 Speaker 1: to appease moderates that the buying trans just transition team 926 00:56:05,760 --> 00:56:08,160 Speaker 1: likes that they can inject into the narrative that they 927 00:56:08,280 --> 00:56:11,120 Speaker 1: considered a Republican, know what I mean. I think he's serious. 928 00:56:11,239 --> 00:56:13,200 Speaker 1: I really do. I think he's serious. There's lots of 929 00:56:13,560 --> 00:56:16,960 Speaker 1: African American and women business leaders at Curly Feriny others 930 00:56:17,280 --> 00:56:20,320 Speaker 1: who could who could take that position, a Meg Whitman 931 00:56:20,400 --> 00:56:22,759 Speaker 1: that could take that position and um, you know and 932 00:56:22,920 --> 00:56:25,400 Speaker 1: do and do good work with it. Um. So I 933 00:56:25,680 --> 00:56:28,520 Speaker 1: don't think he's I don't think it's uh, it's fluff. 934 00:56:28,600 --> 00:56:30,960 Speaker 1: I do think they're serious. I mean they were serious 935 00:56:31,000 --> 00:56:35,360 Speaker 1: about having Dev Holland and Michael Reagan for the e 936 00:56:35,480 --> 00:56:38,279 Speaker 1: p A and the interior spots. Um, the first you know, 937 00:56:38,440 --> 00:56:42,960 Speaker 1: Native American woman to be potential cabinet official and an 938 00:56:42,960 --> 00:56:45,920 Speaker 1: African American male leading the e p a UM. So, 939 00:56:46,080 --> 00:56:48,200 Speaker 1: you know, I think they're serious about what they say, 940 00:56:48,239 --> 00:56:51,560 Speaker 1: and I think he's serious about having a Republican as 941 00:56:51,600 --> 00:56:53,880 Speaker 1: part of that, just as Obama was when with with 942 00:56:54,040 --> 00:56:56,359 Speaker 1: Bill Cohen and and you know, and I don't think 943 00:56:56,440 --> 00:56:58,920 Speaker 1: that Tom Steyer is a good fit for that spot, 944 00:56:58,960 --> 00:57:01,839 Speaker 1: although I know everyone in the progressive side really likes him, 945 00:57:01,920 --> 00:57:03,560 Speaker 1: so I do. I do think he's serious, and I 946 00:57:03,640 --> 00:57:07,040 Speaker 1: think we'll see. I think what you said about the 947 00:57:07,239 --> 00:57:11,160 Speaker 1: business leaders who are a political is as close as 948 00:57:11,200 --> 00:57:13,239 Speaker 1: it will get. Based on a conversation I had today. 949 00:57:13,600 --> 00:57:17,520 Speaker 1: I think that meshes with my reporting. A political business 950 00:57:17,600 --> 00:57:21,000 Speaker 1: leader type lesser known, I think they have more of 951 00:57:21,080 --> 00:57:24,400 Speaker 1: a shot than someone who is known as a Republican, 952 00:57:24,480 --> 00:57:27,000 Speaker 1: if that makes sense. That's based upon some reporting I 953 00:57:27,120 --> 00:57:29,200 Speaker 1: did today. Here's what's on my radar, that hack, that 954 00:57:29,360 --> 00:57:30,880 Speaker 1: cyber hack, and I do want to play for you 955 00:57:30,960 --> 00:57:33,320 Speaker 1: what Attorney General Bill Barr had to say about it, 956 00:57:33,400 --> 00:57:35,720 Speaker 1: saying that it was the Russians. Here is earlier today. 957 00:57:36,240 --> 00:57:39,720 Speaker 1: From the information I have, uh, you know, I agree 958 00:57:39,840 --> 00:57:46,120 Speaker 1: with Secretary Pompeio's assessment. It's certainly appears to be the Russians. 959 00:57:46,640 --> 00:57:49,920 Speaker 1: He was answering questions at the Department of Justice earlier 960 00:57:50,040 --> 00:57:53,200 Speaker 1: today saying that that massive hack attack on the US 961 00:57:53,280 --> 00:57:56,600 Speaker 1: government agencies was widely blamed on the Kremlin. At that 962 00:57:56,720 --> 00:58:00,600 Speaker 1: message meshes with the intelligence at the Apartment of State 963 00:58:00,640 --> 00:58:02,520 Speaker 1: as well as from the Department of Justice. My thanks 964 00:58:02,600 --> 00:58:05,360 Speaker 1: to Frank Massano, partner at Bracewell, and of course to 965 00:58:05,400 --> 00:58:09,360 Speaker 1: Adam Hodge over at Aerial Investments. I'm Kevin Cerelli, chief 966 00:58:09,400 --> 00:58:14,680 Speaker 1: Washington correspondent for Bloomberg TV and for Bloomberg Radio. Thanks 967 00:58:14,720 --> 00:58:16,280 Speaker 1: for listening to Bloomberg nine nine one.