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00:00> > FROM THE WORLD OF POLITICS TO THE WORLD OF BUSINESS, THIS IS "BALANCE OF POWER" WITH DAVID WESTIN. DAVID: FROM BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK TO OUR TV AND RADIO AUDIENCES WORLDWIDE, WELCOME TO "BALANCE OF POWER." CONCERNS OVERFED RATE HIKES AND WHAT THEY WILL MEAN FOR THE ECONOMY CONTINUE THIS WEEK. THE REACTION IN THE MARKETS WE WELCOME ABIGAIL DOOLITTLE. THERE IS REACTION CONTINUING FROM LAST WEEK. ABIGAIL: WE HAVE STOCKS DOWN ON THE WORST SINCE SEPTEMBER OF LAST YEAR. THE DOW AT ONE POINT DOWN 1.6%, THE WORST DAY SINCE THE END OF NOVEMBER. THAT IS IMPORTANT. THIS YEAR IS ALL ABOUT ROTATION. TODAY WE HAVE THE BANKS DOWN BECAUSE GOLDMAN SACHS PUT UP A DISAPPOINTING REPORT. THIS IS EVERYTHING TO DO WITH RISING RATES AND THE EXPECTATION THE FED WILL RAISE. THAT CAUSING A REPRICING RISK. WE ARE SEEING JITTERS, BUT THE YIELD CURVE IS SUPER INTERESTING. THE 530 IS AT ITS FLATTEST GOING BACK TO BEFORE THE PANDEMIC. THAT SHOULD FAVOR STOCKS. ONCE INVESTORS GET THESE JITTERS OUT IT COULD BE A GOOD SCENARIO FOR STOCKS UNTIL THERE IS A DIVERSIONS. DAVID: BONDS ARE UP WELL OVER 1.8%. WE DO NOT MAKE IT TO 2% AT THE END OF LAST YEAR. THE DOLLAR IS NOT RALLYING THE WAY I MIGHT HAVE EXPECTED IT TO. WHAT DOES THAT SAY ABOUT THE U.S. ECONOMY? ABIGAIL: THAT IS AN INTERESTING QUESTION. WHEN I THINK ABOUT A DOWN DOLLAR I THINK OF THE FED AND THE LIQUIDITY. THE FACT THEY ARE BACKING OUT SPEAKS TO YOUR POINT ABOUT THE ECONOMY. FOLKS ARE NERVOUS ABOUT THE ECONOMY. THE YIELD CURVE, THE 5-30 AROUND 50, IF THAT WERE TO INVERT. RIGHT NOW YOU HAVE THE FED IS SITTING IN THE LONG END, SELLING THE SHORT AND THE MIDDLE. IT COULD INVERT. IF IT DOES THAT COULD BE A PRECURSOR OF SOME RECESSION THAT WOULD FIT WHAT WE ARE TALKING ABOUT. THE S & P 500, THESE INDEXES ARE FORECASTING SIX MONTHS OR NINE MONTHS OUT. PERHAPS THERE COULD BE ECONOMIC BUMPS AHEAD. WE HAD DETERMINED AS PERIOD OF GROWTH OUT OF THE PANDEMIC. DAVID: WISH REMEMBER THAT PERIOD OF GROWTH AND HOLD ONTO IT FOR AS LONG AS WE CAN. HOLDING ONTO THE MARKETS AND THE EFFECT ON THE ECONOMY OVERALL BETWEEN INFLATION AND RATE HIKES WE WELCOME ADAM POSEN, PRESIDENT OF THE PETERSON INSTITUTE FOR ECONOMICS. HE EARLIER SERVED ON THE BANK OF ENGLAND MONETARY POLICY. HOW DIFFICULT WILL THIS BE. IT HAS BEEN A LONG TIME SINCE WE'VE HAD THE FED NOT ACTIVELY SUPPORTING THE ECONOMY. NOW THEY WILL BACK OFF. HOW BIG OF AN ADJUSTMENT WILL THAT BE? ADAM: I AM HOPEFUL IT WILL NOT BE TERRIBLE. WE HAVE SEEN A REPRICING RISK BUT IT HAS BEEN GRADUAL AND RELATIVELY MEASURED. THERE WAS AN ARGUMENT THAT THERE WAS SOME EXCESS. A LOW BIT OF REPRICING IS FINE. THE IMPORTANT THING WE NEED FROM OUR POINT OF VIEW AND SHOULD BE IN THE FED WINDOW IS THE AMOUNT OF LEVERAGE IN THE ECONOMY IN THE STATE OF HOUSEHOLDS IN NONFINANCIAL CORPORATE BALANCE SHEETS IS QUITE GOOD. IT WAS ALREADY MUCH BETTER IN 2008. PERHAPS AS GOOD AS 2000 IN 2019 FOR THOSE NOT HIT DIRECTLY BY UNEMPLOYMENT IN 2020 AND 2021. THEY MOSTLY CAME OUT OF COVID WITH A BETTER BALANCE SHEETS SITUATION. IT IS NOT A DONE DEAL. THERE ARE RISKS WHEN THE FED HAS TO TIGHTEN. I AM STILL HOPEFUL WE WILL GET THROUGH MORE PROGROWTH RECESSION THAN A REAL RECESSION. DAVID: HOW IMPORTANT IS HOW THE FED TIGHTENS? WE HAVE BACKING OFF OF BOND BUYING. WE HAVE RATE HIKES. WE HAVE ROLLING OFF THE BALANCE SHEET. WHAT IS THE RIGHT SEQUENCING OF THAT AND DOES IT MAKE A DIFFERENCE WHAT HAPPENS WITH THE ECONOMY OVERALL? ADAM: IT IS A GOOD QUESTION AND SOMETHING YOUR VIEWERS HAVE STRUGGLED -- I AM OF THE VIEW IS NOT QUANTITATIVE TIGHTENING OR TAPERING, IS NOT THAT BIG OF A DEAL. QUANTITATIVE EASING IS MOSTLY ASYMMETRIC. IT IS ABOUT PROVIDING LIQUIDITY TO THE MARKETS. THE WITHDRAWAL OF IT WHEN MARKETS ARE OK IS NOT AS EFFECTIVE. IT IS MOSTLY ABOUT SIGNALING -- IN PRACTICE, IT IS SLIGHTLY MORE COMPLICATED AND SLIGHTLY LESS EFFECTIVE TO HIKE RATES WHEN YOU'RE STILL BUYING BONDS BUT IT IS NOT IMPOSSIBLE. I THINK THE REALITY IS THAT IN MARCH THEY WILL BE DONE BUYING AND THEN THEY WILL BE READY TO START AS SOON AS THAT WITH RATE HIKES. THE ROLLING OFF OF THE BALANCE SHEET IS SOMETHING THEY WILL COMMIT TO OVER A LONG PERIOD OF TIME SO AS NOT TO ROYAL MARKETS. DAVID: WE HEAR ABOUT POSSIBLE POLICY ERRORS. YOU LOOK AT THE TRACK RECORD OF THE FED IS TRYING TO HAVE A SOFT LANDING, IT IS NOT A GREAT TRACK RECORD. ADAM: IT IS NOT BECAUSE IT IS INHERENTLY DIFFICULT. THE POLICY ERRORS AS THE NOMINEES OF CHAIR AND VICE CHAIR HAVE SAID CLEARLY ARE ALL TILTED TOWARDS BEING TOO BEHIND THE CURVE. I THINK A FEW MONTHS AGO IT WAS PERFECTLY REASONABLE FOR THEM TO BE HOLDING OFF, BUT AT THIS POINT IT IS VERY HARD FOR THEM NOT TO ACT. THE MARKET IS PRICED IN THREE OR FOUR HIKES, 25 BIPS THIS YEAR. THE POLICY ERROR WOULD BE WAITING TOO LONG AND I THINK THERE IS LITTLE RISK OF THAT. SIX MONTHS OR NINE MONTHS DOWN THE ROAD THERE IS A POSSIBILITY WE WILL SEE INFLATION DECLINE RAPIDLY FOR TRANSITORY REASONS, IF I CAN USE THAT WORD. THERE IS A CHANCE THE FED AND THE FOMC MIGHT HOLD OFF ON DOING IT AS MUCH AS NEEDED WHEN THEY GET THAT HEAD FIGHT. THAT IS THE KIND OF -- WHEN THEY GET THAT HEAD FAKE. THAT IS THE KIND OF POLICY ERROR I AM WORRIED ABOUT. DAVID: MAYBE THAT IS YOUR ANSWER TO MY NEXT QUESTION, WHICH IS THE NOTION OF ENTRENCHMENT. WHAT DOES ENTRENCHMENT MEAN? IS IT A MATTER OF EXPECTATIONS? IT IS PRIMARILY A MATTER OF EXPECTATIONS BUT WE ARE NOT IN THE 1970'S. WE DO NOT HAVE WAGE EXPECTATIONS, WE DO NOT HAVE VARIOUS UNIONS. THERE IS A LOT OF DEBATE ABOUT HOW MUCH PRICING POWER LARGE COMPANIES HAVE IN THIS ECONOMY. THAT IS MORE ABOUT THE LONG-TERM DYNAMISM OF THE ECONOMY. THERE IS A LOT OF THINGS THAT SUGGEST THE ONLY WAY INFLATION GETS ENTRENCHED IS EXPECTATIONS GET OUT OF WHACK. I WANT TO STRESS THIS IS THE DIFFERENCE BETWEEN PERSISTENT AND ENTRENCHED. AS YOU KNOW, I'VE BEEN ARGUING, SOME HAVE BEEN ARGUING MORE STRONGLY, THAT INFLATION WILL BE HIGHER AND LAST LONGER THAN THE FED AND OTHERS FORECAST. THAT IS NOT MEAN I THINK IT IS ERODING THE LONG-TERM, THAT DOES NOT MEAN I THINK IT IS AN UPWARD SPIRAL FROM HERE. THAT MEANS I DO THINK WE WILL BE WELL INTO 2023 BEFORE INFLATION RETURNED SUSTAINABLY. DAVID: HAVE WE INVERTED THE PARADIGM? FOR THE LONGEST TIME YOU AND I WERE TALKING AND SAYING PART OF THE FOCUS IS YOU ARE SHOOTING TOO ON INFLATION EXPECTATIONS. YOU THINK 3.5% OR MAYBE EVEN ABOVE THAT, DO YOU THINK WE HAVE TO TURN THAT AROUND, WE HAVE TO GET BACK DOWN TO 2%? ADAM: I THINK WE WOULD STILL WANT THAT, TO BE HONEST. IT IS AN UNPOPULAR POSITION BUT I THINK IT IS THE RIGHT THING. IF THE SOFT LANDING WILL SET 3%, LEAVE IT THERE. I THINK WE WOULD BE GOING OFF -- I THINK WE WOULD BE BETTER OFF GOING INTO THE NEXT RECESSION IF LABOR MARKETS GET OUT-OF-THE-WAY. THE UNPOPULARITY OF INFLATION DEEPLY FELT AND EXPRESSED BY PEOPLE WORKING LOWER INCOME JOBS IS AN IMPORTANT THING. THE WAY PEOPLE HAVE REACTED TO THE INFLATION WE HAVE HAD IS SOMETHING THE FED HAS TO TAKE INTO ACCOUNT. THEY ARE THERE TO MAKE THE CHOICE, EVEN WHEN IT IS UNPOPULAR. THE FACT THAT LOWER INCOME PEOPLE HAVE REACTED THE WAY THEY HAVE TO INFLATION, EVEN WHEN IT IS THE FIRST INFLATION IN FOREVER, EVEN WHEN IT IS ACCOMPANIED BY WAGE GROWTH COME IS THE MESSAGE THE FED SHOULD LISTEN TO. DAVID: IS THERE ANYTHING THE MINISTRATION CAN OR SHOULD DO OR PERHAPS NOT DO? SHOULD THEY SIT ON THEIR HANDS? ADAM: I THINK THAT WOULD BE WISE. IF THEY WERE STILL PUMPING IN FISCAL STIMULUS THEY WOULD HAVE TO LEAN BACK ON THAT. AS YOUR VIEWERS WELL KNOW AND YOU COVER THE ACTUAL FISCAL STATUS NOW COME THE STIMULUS HAS BEEN REVERSED SINCE MIDYEAR 2021. BUILD BACK BETTER IF IT PASSES AS A SMALL THING IN THE SHORT TERM. I WOULD NOT WORRY ABOUT THAT BUT THEY SHOULD NOT BE DOING ANY MORE SHORT-TERM STIMULUS. THE BIGGEST THING THE ADMINISTRATION CAN DO IS MANAGE EXPECTATIONS AND CONTRIBUTE TO THE FED MANAGING EXPECTATIONS. THEY SHOULD BE HONEST AND FORTHRIGHT THAT INFLATION IS UNLIKELY TO COME DOWN QUICKLY. THEY SHOULD BE HONEST AND FORTHRIGHT THE FED IS GOING TO HAVE TO TIGHTEN, AND THEY SUPPORT THAT. THEY SHOULD BE HONEST AND FORTHRIGHT THAT INFLATION IS BECAUSE THE ECONOMY OVERHEATS. THEY DO NOT HAVE TO SAY THE AMERICAN RESCUE PLAN WAS A MISTAKE. THEY SHOULD NOT SAY THEY DO NOT WANT TO DO INVESTMENT. THEY SHOULD RECOGNIZE REALITY AND HAVE FORECAST IN LINE WITH REALITY. IF IT TURNS OUT INFLATION FALLS FASTER -- DAVID: ALWAYS SO HELPFUL TO HAVE YOU WITH US. THAT IS ADAM POSEN, PRESIDENT OF THE PETERSON INSTITUTE. COMING UP, FORMER SECRETARY TREASURY STEVEN MNUCHIN INVESTS IN A SPAC. WE TALK ABOUT THE NEW DEAL. DAVID: THIS IS "BALANCE OF POWER" ON BLOOMBERG TOLERATION AND RADIO. SATELLOGIC ANNOUNCED A BIG NEW INVESTOR, STEVEN MNUCHIN. WE WELCOME HOWARD LUTNICK AND STEVEN MNUCHIN. CONGRATULATIONS ON YOUR NEW DEAL. LET ME START WITH YOU, HOWARD. TELL US ABOUT THIS COMPANY AND YOUR DEAL WITH IT AND WHY DOES A GOOD INVESTMENT. HOWARD: BE FELT THAT SPACE AND SATELLITES IS AN UPCOMING GIGANTIC MARKET FOR DATA. TO HAVE IMAGES OF THE EARTH, DATA ON THE EARTH, THE AMOUNT OF DECISIONS THAT WOULD UNLOCK AND THE ABILITY AND ECONOMICS OF HOW THAT WOULD UNLOCK IS EXTRAORDINARY. WE FOUND THE COMPANY HAS THE BEST TECHNOLOGY TO REDESIGN EVERY INCH OF THE SATELLITE. IT TAKES 10 TIMES THE IMAGES OF EVERYONE ELSE. 70 CENTIMETERS SO YOU CAN TOWN -- YOU CAN COUNT THE CONTAINERS ON THE SHIP, COUNT THE NUMBER OF WHAT IS WORKING AND WHAT IS NOT WORKING A SOLAR FARM. THIS IS INCREDIBLE TECHNOLOGY. IT UNLOCKS A VAST SEA OF OPPORTUNITY IN MARKETPLACES. THIS WAS THE BEST TECHNOLOGY. GUY: FOR OUR RADIO LISTENERS, WE'VE BEEN SEEING IMAGES OF REMOTE SENSING AND HOW DETAILED IT IS. MR. SECRETARY, WE HAVE TALKED ABOUT THE THINGS YOU WANT TO DO. EXPLAIN WHY THIS WAS SUCH AN IMPORTANT INVESTMENT FOR YOU AND YOUR FUND. STEVEN: IT IS GREAT TO BE WITH YOU AND WE ARE VERY FOCUSED ON INVESTMENTS WHERE NOT ONLY CAN WE BRING CAPITAL BUT WE CAN BRING OUR EXPERTISE. WE ARE FOCUSED ON THE TECHNOLOGY AREA, NATIONAL SECURITY, AND OTHER FORMS WHERE WE CAN ADD A LOT OF VALUE. WHAT WE LIKE IS GREAT TECHNOLOGIES, VERY SCALABLE, VERY AFFORDABLE, AND THE COMBINATION OF HAVING A LOT OF DATA WITH A LOT OF AI WILL ENABLE VERY BIG GOVERNMENT MARKETS AND VERY BIG COMMERCIAL MARKETS. DAVID: IF I COULD, WHEN THE DEAL COMES UP YOU MAKE THE DEAL, BUT RIGHT NOW THERE'S A LOT OF TURMOIL IN THE MARKETPLACE. IS IT GIVE YOU ANY PAUSE WE ARE SEEING WITH EQUITIES A LOT OF TURMOIL BECAUSE OF RATE INCREASES. STEVEN: NOT AT ALL. THE LAST TIME I WAS ON YOUR SHOW I WAS COMMENTING ON RATE INCREASES. WE EXPECT INTEREST RATES TO CONTINUE TO GO UP. WE ARE A LONG-TERM INVESTOR. OUR HORIZON IS FIVE YEARS OR LONGER. WE ARE NOT FOCUSED ON WHERE THE MARKETS ARE. THE OPPORTUNITY IS WITH VAST AMOUNTS OF DATA, WE CAN ANALYZE CLIMATE ISSUES, ENERGY SUPPLY, FOOD SECURITY, SUPPLY CHAINS. WE WILL BELIEVE THIS WILL CREATE ALL NEW TYPES OF MARKETS WITH AFFORDABLE IMAGERY. DAVID: HOWARD, YOU HAVE A LOT OF EXPERIENCE IN THIS AREA. YOU KNOW SPAC'S ARE THE HOT NEW THING. NOT ALL HAVE DONE WELL. THEY HAVE TENDED TO PER HUNDRED -- THEY HAVE TENDED TO UNDERPERFORM. WHY IS THIS DIFFERENT? HOWARD: YOU GOING TO THE WORLD'S GREAT MARKETPLACE, IMAGES FROM SATELLITES. WILL BE ABLE TO END THE CONCEPT OF CLIMATE CHANGE. YOU CAN REMAP THE EARTH EVERY DAY. THIS DATA IS SUCH A BIG MARKET. SPAC'S ARE A WAY FOR PEOPLE TO GO PUBLIC, BUT IT IS REALLY ABOUT THE COMPANY. SATELLOGIC IS THE BEST COMPANY. THEY CREATE VIDEO FROMTHEY CREATE VIDEO FROM SPACE -- THAT OF COURSE -- DAVID: RIGHT NOW THERE A LOT OF PEOPLE GOING INTO SPACE, INCLUDING PRIVATE-SECTOR PEOPLE IN THE UNITED STATES. ALSO WE HAVE CHINA AND THINGS LIKE THAT. HOW DO YOU MAKE SURE THERE IS A MOAT AROUND THIS BUSINESS TO MAKE IT A GOOD BUSINESS? STEVEN: THE COMPANY HAS STRONG TECHNOLOGY AND A SIGNIFICANT MANUFACTURING ADVANTAGE. ONE OF THE THINGS IS THE COMPANY CAN PRODUCE THESE SATELLITES AT VERY ECONOMIC LEVELS. FOR THAT REASON THEY CAN SELL THE DATA AT VERY ECONOMIC RATES. THERE ARE A LOT OF PEOPLE INVESTING IN SPACE. THERE ARE A LOT OF OPPORTUNITIES IN SPACE. WE THINK THIS MORE OF A DATA COMPANY THEN A SPACE COMPANY. DAVID: HOWARD, I CANNOT LET SOMEONE WHO KNOWS THE MARKET SO WELL GO WITHOUT COMMENTING ON THE MARKETS TODAY. THEY ARE DOWN AGAIN. WE ARE LOOKING A VOLATILE 2022 GIVEN WHAT WE TALKED ABOUT ABOUT INCREASING RATES. WHAT YOU MAKE OF THE MARKETS AND WHERE THE OPPORTUNITIES AND THE RISKS ARE. HOWARD: THE MARKETS WHERE'S THE FIT. THE FED WILL RAISE RATES. -- THE MARKET SQUARES THE FED. IT WILL BE A SHORT-TERM ROCKY ROAD. AS SOON AS THE FED GETS OUT THERE AND FINDS WHERE IT IS GOING TO GO, CLARIFIES HOW THE TRAINING IS GOING TO END, YOU'LL FIND A NICE FLOOR. IT WILL BE BUMPY, BUT A NICE FLOOR. FOR ME, THIS TRANSACTION TODAY IS SO MUCH FUN BECAUSE YOU HAVE A COMPANY WITH GREAT TECHNOLOGY, YOU HAVE A GREAT PARTNER IN SECRETARY MNUCHIN VALIDATING THIS TECHNOLOGY AND HELPING SATELOGIC SELL AND THE CONCEPT OF "TO INTRODUCE A GIANT DATA AND IMAGE MARKET, I DO NOT THINK IT MATTERS IF THE STOCK MARKET GOES UP AND DOWN BECAUSE YOU WILL SEE A COMPANY LIKE THIS PERFORM BRILLIANTLY IN ONE OF THE GREAT MARKETS IN EUROPE, WHICH WILL BE DATA COLLECTING ACROSS THE GLOBE. IT IS AMAZING. IF YOU CAN TAKE AN IMAGE OF EVERY SQUARE INCH OF THE EARTH EVERY DAY, THE COST OF D -- OF BEING ABLE TO GIVE IT TO FARMERS, INSURANCE COMPANIES, CLIMATE CHANGE, VERY LOW MARGINAL COST AND THAT IS AMAZING. DAVID: THAT IS THE KIND OF DEAL ALL OF US WANT, DOES NOT MATTER WHETHER THE STOCK MARKET GOES UP OR DOWN. ONE LAST YOU. WE HEAR A LOT ABOUT A POLICY ERROR AT THE FED AS YOU PREDICTED. WHAT IS THE RISK OF A POLICY ERROR AND IS THE RISK OF GOING TOO FAR TOO FAST OR NOT GOING FAR ENOUGH FAST ENOUGH? STEVEN: I JUST WANT TO CLARIFY, I DID NOT KNOW THEY WOULD DO IT. I PREDICTED THEY WOULD DO IT. WHAT I SAID IS FOR A LONG TIME THE FIT TRIED TO GET TO 2% INFLATION. IT CANNOT. I AGREE WITH CHAIR POWELL'S POSITION. HE SAID WE WILL NOT TARGET 2%, WE WILL TARGET 2% OVER TIME. WE THEN SAW A MASSIVE RESPONSE BECAUSE OF COVID. I THAT WE ARE MOST PROUD OF THE CARES ACT DEALS WE HAVE DID IN THE IMPACT ON THE ECONOMY. NOW WE HAVE BETWEEN 5% AND 6% INFLATION. IT IS OBVIOUS TO BE THE FED HAS TO RAISE RATES. THEY ARE DOING THAT, AND THAT IS A GOOD THING. MANY BUSINESSES AND INVESTORS ARE HURT BY 0% INTEREST RATES. OVER A LONG TIME, IF WE HAVE 3% 10 DAVID: THIS IS "BALANCE OF POWER ON BLOOMBERG TELEVISION AND RADIO. I AM DAVID WESTIN. THEY NEWS IN THE GAMING BUSINESS AS MICROSOFT MOVES TO BY ACTIVISION FOR UNDER $70 BILLION. KRITI GUPTA IS HERE. KRITI: THIS'LL BE THE LARGEST M & A DEAL IN TECH HISTORY. THE BIGGEST ACQUISITION FOR MICROSOFT. A LOT OF RECORD-BREAKING. MICROSOFT AND ACQUISITION -- AND ACTIVISION ARE AMONG THE TWO BIGGEST PANDEMIC BENEFICIARY STOCKS. IT IS CRUCIAL TALK ABOUT THE CASH INVOLVED. HE SAID IT WAS $70 BILLION. $90 BILLION -- $90 A SHARE, ALL CASH. THIS ONLY USED HALF OF MICROSOFT $130 BILLION CASH ON HAND AND THEY ALSO MAKE ABOUT $60.6 BILLION IN FREE CASH FLOW. THIS IS A DROP ON THE MARKET -- THIS IS A DROP IN THE BUCKET. IN TERMS OF WHAT WILL GET HIM OF THE REVENUES WILL BE HUGE. GOING INTO THE MOBILE GAMING SPACE. DAVID: THIS IS NOT A DONE DEAL. WE HAVE SOME ANTITRUST COMING UP. WE JUST HAVE SOME FTC AT THE DEPARTMENT OF JUSTICE SABLE THEY WILL RAMP UP THE MERGER REVIEW. KRITI: THEY REALLY ARE. WE KNOW THEY HAVE BEEN IN THE CROSSHAIRS. THIS IS CRUCIAL WHEN IT COMES TO GAMING. GIVE ANOTHER DEAL, TAKE-TWO AND ZENGA. WE HEARD FROM JENNIFER REE AND SHE SAID THERE WILL BE ANTITRUST ISSUES, YOU KNOW THESE THINGS TAKE YEARS. WHEN IT COMES TO GAMING, THIS IS NOT THE TOP PRIORITY. IT STILL TAKES YEARS FOR IT TO FALL INTO THE CROSSHAIRS. BUT IT DOES COME TO ANTITRUST FOR BIG TECH, IT IS ABOUT THOSE THIRD-PARTY SELLERS, ADVERTISING. GAMING IS IN THE REARVIEW MIRROR. DAVID: THANK YOU SO MUCH TO KRITI GUPTA FOR THAT REPORT ON MICROSOFT AND THEIR BIG DEAL. DAVID: THIS IS "BALANCE OF POWER" ON BLOOMBERG TELEVISION AND RADIO. I'M DAVID WESTIN. FOR BLOOMBERG FIRST WORD NEWS, WE GO TO MARK CRUMPTON. MARK: SENATE DEMOCRATS ARE ON THE VERGE OF HAVING PRESIDENT BIDEN ANOTHER DEFEAT AS THEY TAKE A VOTING RIGHTS LEGISLATION WITH EXTRAORDINARILY LONG IN THE EVENLY DIVIDED CHAMBER. THE LEGISLATION'S FATE WILL BE SEALED IF TWO DEMOCRATS VOTE AS EXPECTED AGAINST CHANGING SENATE RULES TO EASE ITS PASSAGE. THE ISSUE COULD COME TO A HEAD ON WEDNESDAY, THE SAME DAY PRESIDENT BIDEN SCHEDULED A NEWS CONFERENCE. U.S. SECRETARY OF STATE ANTONY BLINKEN IS IN UKRAINE TODAY MEETING WITH PRESIDENT ZELENSKY AS TENSIONS BETWEEN THE U.S. AND RUSSIA ESCALATE OVER A POSSIBLE RUSSIAN INVASION OF ITS NEIGHBOR. THE TRIP FOLLOWS INCONCLUSIVE TALKS BETWEEN MOSCOW AND THE WEST LAST WEEK THAT FAILED TO RESOLVE DISAGREEMENTS OVER UKRAINE AND OTHER SECURITY MATTERS. SECRETARY BLINKEN WILL GO TO BERLIN LATER THIS WEEK. A GLOBAL HEALTH OFFICIALS AS WE HAVE A RESPONSIBILITY TO COME OUT OF THIS PANDEMIC WITH THE NECESSARY TOOLS TO BE READY FOR THE NEXT ONE. SPEAKING AT A VIRTUAL EVENT TODAY, THE WORLD HEALTH ORGANIZATION SAID OFFICIALS NEEDS TO CREATE TECHNOLOGY VACCINE HUBS TO PRODUCE MORE DOSES. HE SAYS THE CURRENT SYSTEMS ARE NOT CONDUCIVE TO EQUITY AND DON'T GET VACCINES TO EVERYONE WHO NEEDS THEM. FORMER NEW YORK CITY MAYOR BILL DE BLASIO HAS GIVEN UP HIS RUN FOR THE 2022 NEW YORK GOVERNORS RACE. HE HAD HINTED AT A RUN FOR WEEKS, BUT TODAY, SAID HE WOULD FOCUS INSTEAD ON FIGHTING INEQUALITY IN THE STATE. A NEW SIENA COLLEGE POLL SHOWS KATHY HOCHUL AS THE EARLY FAVORITE WITH ONLY 12% OF NEW YORKERS BACKING DE BLASIO. GIOVANNI WILLIAMS AND TOM'S SWAZI HAVE ALSO ENTERED THE RACE. GLOBAL NEWS 24 HOURS A DAY, ON-AIR, AND ON BLOOMBERG QUICKTAKE, POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN OVER 120 COUNTRIES. I'M MARK CRUMPTON. THIS IS BLOOMBERG. DAVID: THANK YOU SO MUCH, MARK. THE COVID OMICRON VARIANT CONTINUES TO RAMPAGE MUCH OF THE WORLD BUT THERE ARE SIGNS OF IT CRESTING RELATIVELY QUICKLY IN SOUTH AFRICA, BRITAIN, AND SOME PARTS OF THE UNITED STATES. TO TALK ABOUT WHERE WE ARE AND TO PREPARE WHAT IS COMING UP NEXT, WE WELCOME DR. ANNE RIMOIN FROM THE UCLA FIELDING SCHOOL OF PUBLIC HEALTH. GIVE US YOUR SENSE OF WHAT OMICRON IS DOING RIGHT NOW. SOME REPORTS THAT WE MAY HAVE BENEFITED BY IT BECAUSE IT PROTECTS FROM OTHER VARIANTS. DR. RIMOIN: THERE IS SOME GOOD NEWS IN THIS SURGE. WE ARE STARTING TO SEE THE VIRUS START TO PEAK IN PLACES LIKE NEW YORK AND EAST, WHERE IT PEAKED FIRST, WHERE IT STARTED FIRST, HOWEVER, IN PLACES LIKE THE MIDWEST WE ARE SEEING THIS DRAMATIC RISE IN CASES. WE ARE STILL IN THE MIDST OF THIS, I WANT TO MAKE THAT CLEAR. HOWEVER, IT IS POSSIBLE THAT THIS VARIANT COULD PROVIDE SOME LEVEL OF IMMUNITY TO POPULATIONS THAT WILL SERVE US IN GOOD STEAD. THERE IS SOME DATA SUGGESTING THAT PARTICULARLY PEOPLE WHO ARE VACCINATED ALREADY DO ACQUIRE A GOOD BOOST IN IMMUNITY FROM INFECTION WITH OMICRON. BUT THIS IS ALL TO BE DETERMINED. WE ARE STILL LEARNING ABOUT THIS VIRUS. WE HAVE SEEN IT CHANGE COURSE MANY TIMES, WE DON'T KNOW IF THERE WILL BE ANOTHER VARIANT. ALL TO BE DETERMINED. DAVID: I SUSPECT THIS IS UNKNOWABLE BUT I WOULD LIKE ANY HINTS THAT YOU CAN GIVE US. YOU ARE AN EPIDEMIOLOGIST. SHOULD WE JUST BRACE OURSELVES FOR HAVING A NEW WAVE EVERY 6, 9 MONTHS? DR. RIMOIN: IT DEPENDS ON HOW GOOD WE ARE AT VACCINATING THE WORLD. WE SEE VARIANTS ARISING IN PLACES WHERE THE VIRUS HAS THE OPPORTUNITY TO RUN RAMPANT THROUGH A POPULATION. WHEN WE SEE THIS VIRUS START TO SPREAD, IT HAS THE OPPORTUNITY TO REPLICATE. WHEN IT REPLICATES, IT MUTATES. THESE MUTATIONS CAN END UP WITH A CONSTELLATION OF MUTATIONS THAT COULD MAKE UP MORE VIRULENT, DANGEROUS. IT DEPENDS ON WHAT WE DO AND HOW VIGILANT WE ARE IN TERMS OF CONTINUING TO DO THE RIGHT THING AS WE START TO SEE A DECREASE IN CASES. IT IS OUR NATURE TO PULL OUR FOOT OFF THE BRAKE WHEN THINGS LOOK BETTER, BUT WE HAVE TO HAVE A LONG-TERM APPROACH TO THIS. WE NEED TO HAVE CONTINUED FOCUS ON TESTING, VACCINES, THERAPEUTICS, SURVEILLANCE, ALL OF THE ABOVE. IF ANOTHER VARIANT ARISES, WE WILL BE ABLE TO MANAGE IT. DAVID: LET'S TAKE THOSE IN ORDER. TESTING, WHERE ARE WE, AND WHERE DO WE NEED TO BE? HOW SHORT OF THE MARKER WE IN BEING ABLE TO TEST PEOPLE? DR. RIMOIN: TESTING IS A KEY TOOL, GIVES PEOPLE SITUATIONAL AWARENESS, GIVES PEOPLE THE ABILITY TO KNOW ABOUT THEIR POSSIBILITY OF TRANSMITTING TO OTHERS. THIS IS CRITICALLY IMPORTANT. RIGHT NOW, WE DON'T HAVE ENOUGH TESTS IN THE U.S. U.S. HAS NOT INVESTED APPROPRIATELY SO NOW WE ARE PLAYING CATCH-UP. WE WILL GET OVER THIS WAVE, THINGS WILL SLOW DOWN FOR SOME TIME, AND THAT WE WILL PICK IT TO OTHER THINGS, AND THE NEXT TIME THERE IS A WAVE, WE WON'T HAVE THE TESTS. WE HAVE TO CONTINUE TO MARCH FORWARD, HAVE BETTER TESTING WIDELY AVAILABLE SO THAT ANYONE CAN GET A TEST WHEN THEY NEED IT. DAVID: ALL OF US FEEL AN ENORMOUS RELIEF THAT WE HAVE VACCINES. THE BOOSTERS AFTER THAT. WHAT IS THE BEST STRATEGY WITH RESPECT TO VACCINES IN THIS SENSE. SHOULD WE BE DEVELOPING A CUSTOMIZED VACCINE FOR OMICRON AND OTHER VARIANTS, OR IS THE PROSPECT OF A VACCINE THAT CAN HANDLE OTHER VARIANTS COMING ALONG? DR. RIMOIN: THE ONES THAT WE HAVE NOW ARE GREAT AT KEEPING US FROM GETTING SEVERE DISEASE, GETTING HOSPITALIZED, AND DYING. IT DOES PROVIDE A MEASURE OF PROTECTION IN GETTING IT AND SPREADING IT, BUT WE CAN DO BETTER. THERE WILL BE MEDIUM AND LONG-TERM CHANGES TO THE VACCINES. WE ALWAYS SEE SECOND, THIRD GENERATION VACCINES. EVENTUALLY, WE WILL SEE A VACCINE THAT WILL DO WELL AGAINST MULTIPLE VARIANTS. THAT IS THE GOAL. BUT CERTAINLY, NEW VACCINES COMING UP IN THE MEDIUM-TERM WILL BE LIKELY AFFECTED AGAINST THE VARIANCE THAT WE KNOW ABOUT. DAVID: AS YOU SAY, WE CANNOT KNOW WHAT COMES NEXT, AND WE HAVE BEEN SURPRISED A COUPLE OF TIMES ALREADY BY THIS CORONAVIRUS. LET'S ASSUME WE HAVE ANOTHER VARIANT SIX MONTHS DOWN THE ROAD. WHAT SHOULD WE BE DOING TODAY TO GET READY FOR THAT NEXT WAVE COMING OUT? DR. RIMOIN: WE JUST HAVE TO CONTINUE TO DO THE THINGS THAT WE KNOW WORK. EXCELLENT DISEASE SURVEILLANCE, INVESTING IN THIS, MAKING SURE WE HAVE ENOUGH SEQUENCING GOING SO THAT WE ARE AWARE WHEN WE SEE NEW VARIANTS OCCURRING. WE NEED TO HAVE MORE TESTING. WE NEED TO BE ABLE TO ENSURE THAT OUR VACCINES CONTINUE TO BE ROLLED OUT, THAT PEOPLE ARE AWARE THAT GETTING A BOOSTER IS IMPORTANT, GETTING VACCINATED IS CRITICAL. I SPENT MY ENTIRE CAREER WORKING ON EMERGING INFECTIONS IN PLACES LIKE THE DEMOCRATIC REPUBLIC OF CONGO. WE SEE THIS WITH EBOLA. PEOPLE DO EVERYTHING THEY CAN TO STAMP OUT AN EPIDEMIC AND THEN EVERYTHING GETS LOOSENED UP, AND WE WERE CONSTANTLY CHASING THE VIRUS. WE NEED TO GET IN FRONT OF IT. EVEN IN TIMES WHERE WE SEE LOW RATES OF TRANSMISSION, WE HAVE TO CONTINUE TO MOVE FORWARD. DAVID: GREAT TO HAVE YOU WITH US, DR. ANNE RIMOIN OF THE UCLA FIELDING SCHOOL OF PUBLIC HEALTH. COMING UP, THE HAVOC THAT OMICRON HAS WREAKED ON OUR SCHOOLS, WITH FORMER SECRETARY OF EDUCATION MARGARET SPELLINGS. THIS IS BLOOMBERG. DAVID: THIS IS "BALANCE OF POWER" ON BLOOMBERG TELEVISION AND RADIO. I'M DAVID WESTIN. SCHOOL SYSTEMS AROUND THE COUNTRY ARE STRUGGLING TO TRY TO STAY OPEN FOR IN CLASS LEARNING, EVEN AS ABSENTEEISM OF STUDENTS AND TEACHERS SOARS. MARGARET SPELLINGS HAS DEVOTED HER CAREER TO EDUCATION, SERVING AS THE SECRETARY OF EDUCATION UNDER PRESIDENT BUSH AND SERVING IN THE NORTH CAROLINA EDUCATION SYSTEM. YOU POINTED ME TO A SURVEY DONE THAT INDICATED A LOT OF PARENTS ARE NOT HAPPY WITH THE WAY THAT SCHOOLS HAVE HANDLED COVID. WHAT DO YOU MAKE OF THAT? MARGARET: A COUPLE OF THINGS, THEY HAVE BEEN HOME WITH THEIR STUDENTS AND THEY SEE MAY THEIR ACADEMIC PROGRESS HAS BEEN THWARTED. THEY ARE NOT READING WELL, THEY ARE AT A LOSS OF HELPING THEIR STUDENTS GET BACK ON TRACK. FURTHER, THEY SEE SCHOOLS STRUGGLING TO STAY OPEN, AFFECTING THEIR ABILITY TO MANAGE THEIR FAMILY LIVES. THERE HAS BEEN AN OVER RELIANCE ON PARENTS AND FAMILIES TO RESPOND TO THESE AUDIBLES THAT OUR SCHOOLS ARE MAKING. DAVID: WE HAVE A PROFOUND SENSE THAT WE HAVE LOST SOMETHING WITH OUR KIDS ACROSS THE COUNTRY IN EDUCATION, THE SOCIAL EMOTIONAL SUPPORT. DO WE KNOW HOW BAD IT IS? MARGARET: EARLY RETURNS ARE THAT KIDS ARE AS MUCH AS TWO YEARS BEHIND, ABOUT SIX TO NINE MONTHS SEEMS TO BE THE NORM. READING IS WORSE THAN MATH. IT HAS REALLY TAKEN A TOLL. IT IS SOMETHING -- AND I LOVE THAT WE ARE DOING THIS SEGMENT AFTER THE SESSION WITH THE DOCTOR FROM UCLA. WE HAVE TO PLAY THE LONG GAME HERE. OUR KIDS HAVE SUFFERED SEVERE CONSEQUENCES, AND YES, PUBLIC HEALTH, THEIR HEALTH IS IMPORTANT, BUT THEY ARE STRUGGLING MIGHTILY WITH MENTAL HEALTH AND ACADEMIC LOSSES. DAVID: WE SEE THE CONTRAST BETWEEN CHICAGO WHICH CLOSED DOWN, AND NEW YORK, MAYOR ADAMS SAYS HE WILL TRY TO KEEP IT OPEN BUT HAS A BACKUP PLAN. TEACHERS AND STUDENTS ARE NOT SHOWING UP. MARGARET: IT IS THE SAME ISSUES THAT WE SEE IN OUR HEALTH CARE SYSTEM COUPLED WITH THE GREAT RESIGNATION. AS MANY AS ONE THIRD OF OUR TEACHERS, MANY SCHOOL ADMINISTRATORS ARE JUST DROPPING THE MIC. IT IS HARD TO BE A TEACHER THESE DAYS. IF COVID WAS NOT BAD ENOUGH, THERE ARE THE POLITICAL TENSIONS THAT PLAY OUT IN OUR SCHOOLS, PUBLIC SQUARES AROUND CRITICAL RACE THEORY, BOOK ISSUES, CURRICULUM, ON AND ON. IT IS A TOUGH TIME TO BE AN EDUCATOR. NOT THE LEAST OF WHICH IS KEEPING YOURSELF AND YOUR FAMILY SAFE SO THAT YOU CAN SHOW UP TO WORK. DAVID: WHAT CAN WE DO TO ADDRESS THAT? PARENTS FEEL STRONGLY ABOUT THE EDUCATION OF THEIR KIDS, AND YOU SEE THIS IN STATE AFTER STATE. A BIG ISSUE IN THE VIRGINIA GOVERNOR'S RACE. IT IS A LOCAL ISSUE LARGELY. MARGARET: IT ABSOLUTELY IS. HE WHO HAS THE GOLD MAKES THE RULES. MOST OF THE FUNDING COMES FROM STATE AND LOCAL GOVERNMENT. THAT WILL CONTINUE TO BE TRUE AS THEY DEAL WITH VACCINE MANDATES, MASK PROHIBITIONS, THOSE ISSUES AS WELL. THIS IS MAKING FOR AN INTERESTING MOMENT FOR THE SCHOOL CHOICE MOVEMENT, AND THAT IS TO SAY, A LOT OF PARENTS ARE OBSERVING THAT PRIVATE, PAROCHIAL SCHOOLS ARE STAYING OPEN, THESE SMALLER LEARNING COMMUNITIES. I THINK THERE IS SOME REAL MOMENTUM AROUND SCHOOL CHOICE WITH APPARENT'S ABILITY TO VOTE WITH THEIR FEET GAINING SOME TRACTION. DAVID: LET ME ASK YOU A SENSITIVE QUESTION. A VIEWER ASKED A VERSION OF THIS, AND IT IS A TOUGH ONE. IS PART OF THE PROBLEM THAT PEOPLE MAKING THE DECISION ARE OLDER AND DON'T HAVE YOUNGER CHILDREN, SO THIS IS A GENERATIONAL DECISION, WE WILL PROTECT US OLDER FOLKS EVEN THOUGH WE ARE SACRIFICING TO SOME EXTENT OUR CHILDREN. MARGARET: THERE ARE A LOT OF THEORIES ABOUT THIS. I THINK THAT WE ARE ALL NOW COMING TO TERMS WITH A LONG GAME. WE HAVE TO KEEP OUR KIDS IN SCHOOL, HAVE SUPPORTS AND TRIAGE, TUTORS, OTHER WAYS OF DOING BUSINESS. YES, BRIEF PERIODS OF REMOTE BUT WE CANNOT SUSTAIN THIS NATION AND OUR STUDENTS AND THEIR ACADEMIC PROGRESS WITH THESE FITS AND STARTS, ESPECIALLY AROUND UNDERDEVELOPED OFTEN REMOTE OPTIONS, EITHER BECAUSE OF BROADBAND OR A LACK OF TECHNOLOGY, OTHER REASONS. IT IS JUST NOT A LONG-TERM STRATEGY THAT WILL MAKE FOR SUCCESS FOR OUR KIDS. DAVID: WHEN WE TALK ABOUT EDUCATION, I'M NOT SURE WHY BUT WE FOCUS ON K-12. YOU HAVE A FOCUS ON THAT BUT AS WELL AS HIGHER EDUCATION. TALK ABOUT THAT IN RESPECT TO COVID. MARGARET: ENROLLMENT FOR THE MOST PART IS DOWN OVERALL. I THINK THERE ARE A LOT OF THEORIES ABOUT THIS AS WELL. MINE ARE, PEOPLE DON'T SEE THE VALUE BEING REMOTE, PAYING FOR TUITION, WHEN THE EXPERIENCE WITH THAT FACULTY AND OTHER STUDENTS REALLY HAS BEEN VERY CHALLENGED. NUMBER TWO, THERE ARE A LOT OF ECONOMIC OPPORTUNITIES FOR PART-TIME AND FULL-TIME JOBS. PEOPLE ARE TRYING TO PLAY THE SHORT GAME, SURVIVE, KEEP THEMSELVES AND THEIR FAMILY HEALTHY, PUTTING OFF HIGHER EDUCATION BECAUSE THERE ARE JOB OPPORTUNITIES THAT DON'T REQUIRE THOSE THINGS IN THE SHORT TERM. THIRDLY, WE ARE SEEING THE VALUE OF HIGHER EDUCATION QUESTIONED IN THE SHORT TERM. THAT WILL NOT BE TRUE OVER THE LONG-TERM. WE ARE STILL A KNOWLEDGE ECONOMY WITH MOST OF THE OPPORTUNITY BEING FOUND WITH JOBS THAT REQUIRE POSTSECONDARY CREDENTIALS, BUT WE ARE IN A CRUNCH TIME HERE AS WELL. HIGHER ED HAS DONE AN OK JOB OF TRYING TO MANAGE THROUGH THE SITUATION BUT WE HAVE CONSUMERS WHO ARE QUESTIONING THE VALUE. DAVID: ONE MORE LARGELY ON K-12. IS THERE AN OPENING FOR MORE COMPETITION WITH RESPECT TO PUBLIC SCHOOLS? IN THE WAKE OF HURRICANE KATRINA, WE SAW CHARTER SCHOOLS RISE TO THE FORE IN NEW ORLEANS. SOME ARE NOW SAYING THAT WE NEED OTHER ALTERNATIVES SO THAT WE ARE NOT JUST ESSENTIALLY A MONOPOLY FOR PUBLIC SCHOOLS. MARGARET: THAT IS THE BIG TAKEAWAY THAT WE WILL SEE SHOW UP IN POLICY AS LEGISLATURES CONVENE AGAIN. CHARTERS, SCHOOL CHOICE, TUTORING, SUPPORT FOR HOMESCHOOLING. THIS ONE-SIZE-FITS-ALL ENTERPRISE IN A PHYSICAL PLANT IS BEING CHALLENGED. I THINK WE WILL SEE ALL MANNER OF MODELS AND RESPONSES, ONLINE, OFF-LINE, CHARTERS CHOICE, ALL OF THIS BEING DEBATED IN THE NEXT YEAR OR TWO. DAVID: SUCH A NEW SET OF TOPICS. HIS FORMER EDUCATION SECRETARY MARGARET SPELLINGS. COMING UP, THE SENATE PREPARED TO TAKE UP THE QUESTION OF VOTING RIGHTS. THIS IS "BALANCE OF POWER" ON BLOOMBERG TELEVISION AND RADIO. DAVID: THIS IS "BALANCE OF POWER" ON BLOOMBERG TELEVISION AND RADIO. I'M DAVID WESTIN. SENATE MAJORITY LEADER CHUCK THE PROCESS THAT IS SUPPOSED TO LEAD TO VOTES ON TWO PIECES OF WOOD LEGISLATION DESPITE THE ODDS BEING AGAINST HIM. WE TURN NOW TO ANNMARIE HORDERN. WHAT IS THE THEORY BEHIND WHAT CHUCK SCHUMER IS DOING RIGHT NOW? EVERYONE SAYS HE WILL NOT GET IT BUT MAYBE WE ARE ALL WRONG? ANNMARIE: IT LOOKS LIKE THEY WILL NOT BE VICTORIOUS IN THESE TWO SEPARATE LEGISLATIONS. ONE BRINGS THE VOTING RIGHTS ON DEBATE. SENATOR SCHUMER SAYS IT IS OPEN FOR DEBATE. EVEN IF THEY CAN GET THE DEMOCRATS TO VOTE ON THAT, THEY WILL NOT GET THE 10 REPUBLICANS TO SIGN UP. THEN THERE WILL BE A MOMENT WHERE HE WANTS TO CLOSE DEBATE. THAT IS WHERE HE WOULD NEED THAT 60-VOTE THRESHOLD. THAT IS WHERE HE COULD POTENTIALLY HAVE AN AMENDMENT WHERE HE WOULD NEED A SIMPLE MAJORITY, BUT THIS WOULD ALTER THE FILIBUSTER. SENATORS WILL BE MEETING LATER THIS EVENING TO DISCUSS THAT. WE ALREADY KNOW SENATOR JOE MANCHIN AND KYRSTEN SINEMA HAVE ALREADY SAID THAT THEY HAVE A LOT OF ISSUES WITH GETTING RID OF THE FILIBUSTER. ALREADY THE LEGISLATION IS PRETTY MUCH DEAD ON ARRIVAL, BUT MOMENTS AGO, WE HEARD FROM JEN PSAKI. SHE REITERATED WITH THE PRESIDENT SAID LAST WEEK WHICH IS HE BELIEVES THE AMERICAN PEOPLE SHOULD DESERVE TO KNOW WHERE EVERY SINGLE LEGISLATOR STANDS WHEN IT COMES TO VOTING RIGHTS. IT SEEMS THIS IS JUST TO SET THE RECORD STRAIGHT ON WHERE YOUR REPRESENTATIVE STANDS WHEN IT COMES TO VOTING. DAVID: ON THE FILIBUSTER ISSUE, I HAVE HEARD TWO DIFFERENT APPROACHES TO MODIFYING IT. DO WE KNOW WHICH ONE CHUCK SCHUMER IS PURSUING? THERE ARE ALTERNATIVES TO JUST DOING AWAY WITH IT ALTOGETHER. ANNMARIE: THE NUCLEAR OPTION WOULD BE DOING AWAY WITH IT ALTOGETHER. THERE ARE ALSO OPTIONS TO OPEN OR CLOSE DEBATE, GETTING RID OF THE TALKING FILIBUSTER. AT THE MOMENT, WE DON'T KNOW WHICH ROUTE THEY WILL GO. THEY WILL BE MEETING THIS EVENING AROUND 5:00, SO AROUND THAT TIME, WE SHOULD KNOW WHAT ROUTE SENATOR SCHUMER WILL TAKE. DAVID: THEY HAVE THE BUILD BACK BETTER, WHICH I HAVE NOT HEARD ABOUT IN RECENT WEEKS. THEY ALSO HAVE FUNDING OF THE GOVERNMENT, AND STATE OF THE UNION ADDRESS COMING UP. ANNMARIE: THERE ARE A LITANY OF ISSUES. THE GOVERNMENT WILL BE RUNNING OUT OF FUNDING IN ONE MONTH. YOU HAVE THE APPROPRIATIONS COMMITTEE FROM THE SENATE AND HOUSE WORKING TOGETHER POTENTIALLY ON THAT. ALSO, THEY COULD LINK WITH THAT FUNDING MEASURE A POTENTIAL COVID RELIEF BILL AIMED AT BUSINESSES. AS YOU MENTIONED, BUILD BACK BETTER, IT IS STILL BEING DISCUSSED. TIM KAINE SAYS HE THINKS THE LEGISLATION AS A WHOLE PACKAGE IS DEAD, BUT YOU COULD SEE INDIVIDUAL POLICIES COME UP IN CONVERSATIONS AND PASS. THAT WOULD BE A WIN FOR THAT TO BE BACK INTO THE DEBATE ON THE HILL BEFORE THE PRESIDENT ADDRESSES THE UNION. DAVID: THERE WAS A REPORT TODAY FROM A REUTERS THAT PERHAPS THE WHITE HOUSE WOULD GO FORWARD WITH THE ENVIRONMENTAL PROPOSALS IN BUILD BACK BETTER AND LEAVE BEHIND THE CHILD TAX CREDIT. ARE THESE TRIAL BALLOONS THAT WE MAY BE SEEING? ANNMARIE: I THINK YOU WILL SEE A NUMBER OF TRIAL BALLOONS. IT DEPENDS. MANY SENATORS HAVE DIFFERENT PRIORITIES WHEN IT COMES TO, LOOKING AT THE SPECTRUM OF POLICIES IN BUILD BACK BETTER. JEN PSAKI BRIEFING THE PRESS, TALKING ABOUT THE FACT THAT SHE AND THE WHITE HOUSE ARE EXCITED, STILL DISCUSSING THIS. BUT FOR THE PRESIDENT, PIVOTAL POLICIES IN BUILD BACK BETTER WAS CHILDCARE CARE, ELDER CARE, HEALTH CARE. THEY WANT TO SEE ACTION ON THAT WHILE YOU SEE OTHER SENATORS TALK ABOUT POTENTIALLY A SMALLER CLIMATE BILL THAT COULD GET THROUGH. AGAIN, THIS WILL TAKE MONTHS OF NEGOTIATIONS, BUT POTENTIALLY GIVE DEMOCRATS A LITTLE BIT OF FIRE UNDER THEIR BELT AS THEY GO INTO MIDTERMS. DAVID: EXACTLY. WHAT WILL THEY HAVE TO SHOW COME MIDTERMS? THANK YOU TO ANNMARIE HORDERN. CHECK OUT THE BALANCE OF POWER NEWSLETTER ON THE TERMINAL AND ONLINE. "BALANCE OF POWER" CONTINUES ON BLOOMBERG RADIO. WE WILL TALK ABOUT TENSIONS GROWING EVEN MORE OVER UKRAINE. THIS IS "BALANCE OF POWER" ON BLOOMBERG TELEVISION AND RADIO.

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'Balance of Power' Full Show (01/18/2022)

"Bloomberg: Balance of Power" focuses on the intersection of politics and global business. Former U.S. Treasury Steven Mnuchin and Cantor Fitzgerald CEO Howard Lutnick talk about their investment in satellite technology and the latest moves in the markets. Plus, former U.S. Education Secretary Margaret Spellings says lingering learning issues from Covid are resulting in school vouchers getting more momentum. And Peterson Institute President Adam Posen looks at how many rate hikes may be needed to stamp out inflation. (Source: Bloomberg)

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The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Hosted by Emily Chang.
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