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tv   Bloomberg Markets Balance of Power  Bloomberg  February 11, 2020 12:00pm-2:00pm EST

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use of the digital dollar? chair powell: that is a good question and it is one we are looking at. a lot would depend on the design of the currency. rep. hill: one thing we also talked about and we have had a lot of discussions in our task force is about europe's approach to this idea of a payment provider license, which is now part of their financial services code. part of their open banking movement. the idea one would have a regulatory license in the united states for being a payment provider, it might be a bank or a non-bank. is that something the fed is looking at as well? chair powell: i would not say we are focused on that, but more toadly, it is a good idea look at the landscape of oversight of our payment system. that would be a piece of that. governor brainard talked about that in another of her speeches last week. rep. hill: last month the chinese regulators bailed out a bank, a $14 billion loan they arranged through one of their
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sovereign wealth funds. arechinese banking assets 47% of world gdp. instability -- does instability in the chinese banking industry pose a threat to the global financial system, is it a virus like they already contributed a physical virus? chair powell: generally, as i am sure you are a where, -- as i am sure you are aware, china has had a high debt to gdp for this stage in the economy. the government has actually been by the central bank to try to control the growth of debt. they stuck to that through the last couple of years, even those -- even though they were challenging years economically. it is something they were addressing. the other thing to say is they have plenty of physical space.
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, they have power to respond to downturns. i would not go so far as to say their debt is a systemic threat to the world economy or anything like that. it is something they need to address. rep. hill: it is something that deserves review. mr. barr talked about their misallocation of resources. an of global gdp seems like over allocation of the banking sector in china and could pose a threat to our system. in your report you talk at length on your financial stability section about the decline in bond yields, particularly in the high-yield market. i was looking at a mutual fund annual report the other day that set of particular concern is the continuing high rate of issuance for triple b bonds, the lowest category of investment grade rated bonds. if the economy stumbles, there could be a flood of fallen angels in this particular mutual fund said they are staying away
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from the lower end of the high-yield market. are you concerned about the high-yield market? chair powell: that is the so-called bbb cliff. the idea is there was a handful of large issuers that would be noninvestment grade and the idea demandedolders are not to hold noninvestment. that is an issue we have been monitoring for some time. with leveraged lending more generally, we are monitoring it very carefully. low compensation for risk taken. you see high leverage, you see a lack of covenants, you see all of that. it is a complicated picture. and paper is held in clo's not a mutual funds or exchange traded funds. those vehicles tend to be stably
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funded in the sense their liabilities are longer than the expected maturity of the underlying instruments. rep. hill: it is still a source of financial concern, and therefore i commend you for noting it in the report and i thank you for your continued attention. i yield back. rep. waters: the gentleman from illinois is recognized for five minutes. >> thank you chairman powell. i appreciate you sticking around to the bottom of the dais. if i get elected eight more times i will have as much experience in this line of work as i do in the energy sector. primarily ashere an energy nerd. i have a concern that we are not dealing with the realities of climate change scientifically. we understand what it means to have rising sea levels, but we have not thought about what it means to have an accelerating
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rate of change. compound interest confuses people and compound changes in the environment, we cannot think about it as well as it should. a couple of data points i hope all of us can appreciate. james watt 240 years ago and ushered in the industrial revolution and 42% of all of the co2 we have amended as a species is since back to the future came out in 1995. if we want to zero co2 tomorrow, we are looking at two feet of sea level rise coming. more realistic trends run at least six feet of sea level rise. there is 23 chilling dollars of economic loss. u.s. property. there are serious systemic risks to the economy if we live -- if
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we leave those unaddressed. i want to understand how you and the fed are thinking about those risks? given the assets exposed to climate change exceed the entire subprime mortgage market prior to the global financial crisis, how is the fed thinking about climate change as a systemic risk to the economy? chair powell: climate change is a very important issue, one that is the province of elected representatives to set the overall direction of society and how we will respond to climate change and its challenges. we have a job to do, and that is potentialbout the implications for the financial system for the economy. i think we are in the very early stages of filling in what that means. in terms of things like particular assets, these are longer-term considerations. we are essentially concerned with business cycle issues, that is what we are focused on,
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issues for the medium-term. climate change is a much longer cycle. rep. casten: part of the concern i have is the actors in this space do not have planning horizons the meshed to the reality that we do. there are people signing 30 year mortgages for properties in miami beach. they may plan on reselling that the number of times, but somebody will be left holding the paper. the insurance industry has a one year holding period. the u.s. is successful at reducing carbon emissions, they're still massive reallocation of capital. have you looked at the transitional risks and thinking about how that starts moving around? rep. casten: those are the things we are at the beginning stages of looking at. as you obviously know, there's a lot going on in the financial markets. there is disclosure happening, and expectations around disclosure will be changing significantly for publicly held
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companies and that will have an effect. that is not what we do. we do monetary policy, bank supervision. , our banks have to be taking into account the risk of severe weather events and potentially of rising sea levels good rep. casten: let me give a specific -- of rising sea levels. rep. casten: let me give a specific one that has been bugging me. if you look at the fossil industries, the oil and gas companies, the debt they hold relative to their assets, if they were to extract all of their fossil fuel reserves, things will be way worse than the $23 trillion i just told you. have you ever considered stress testing to see whether their failure to fully monetize their reserves might effectively make them physically insolvent -- fiscally insolvent. that sounds like a materially
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adverse event. i do not to bet the economy will commit suicide. if i look at the financial statements of a lot of those companies, it is not clear they can monetize those assets. that has a meaningful effect at the risk of money that is held today. $700 billion went to fossil fuel companies. have you considered that as a systemic risk? we. casten: -- chair powell: would be stress testing banks. the bank of england is doing some of that and will be watching to see what they learn. maybe that is the path we will follow. rep. casten: i yield back my time. rep. waters: the gentleman from georgia is recognized for five minutes. >> thank you again for being here. first of all, i want to touch know some have already touched on this subject. several weeks ago, the vice
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chairman gave a speech where he outlined a number of changes that he would like to make to the fed supervisory and regulatory process. being --e intends to to bring transparency to the regulatory regime by bringing transparent standards to firms. my question is at a press conference after last month's federal open market committee meeting, you said you general agree with the vice chairman and what he articulated. i appreciate that. can you give us an idea of when you expect the designation will be confirmed with new tailoring rules? chair powell: i do not have a sense of where that is in terms of the timing of it. at any given time we have a bunch of things, and that is one of them. rep. loudermilk: hopefully
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sooner rather than later. chair powell: i do not want to commit to something. there are a lot of things they're working on at all times. speechigned with the that i expect will be moving forward. rep. loudermilk: that is good to hear. quickly, i would like to touch on the cra. i believe that all three banking agencies need to have a unified cra framework and i know you are hesitant to speak on behalf of the other agencies. fdic andlly, occ and their proposals. if you do not want to comment on that, what are some of your ideas and the fed ideas for cra modernization? let me talk about the process. we agree on the overall goals. the question is how you get after that? try to get to a
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would improvements that lead to more efficient and more effective cra. we are looking at the assessment clearer. in our thinking the retail level there is a separate test for community development and for retail lending. also, the other thing we are seeing is let's make sure it is all grounded in data good we have -- all grounded in data. we have 6000 data sets we look at. we know you make a change in the metrics, what the effects will be. we try to develop our portfolio -- our proposal around that. there are overlaps, but there handful of differences that prevent us from getting to full agreement. rep. loudermilk: do you believe
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we can remove some of the ambiguity on what projects do and do not qualify? chair powell: absolutely. more transparency as to what qualifies and where, more objectivity, all of that should help to encourage banks to do more. they know what will qualify and what does not. that is constructive. it is about how you implement it. we want to have a -- it is very important law. we want to have a high level of confidence that what we change will have the desired effects. that is what we are focused on. rep. loudermilk: i appreciate that. i would like to see us make changes to where it is not financial institutions just checking boxes to make credit, but investing in projects that help revitalize these communities. as you know the fiscal year 2020 appropriation law directs treasury department in consultation with the banking agencies to study whether any
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changes in bank's capital requirements are needed. if the study concludes that is the case, are you open to modifying regulatory capital requirements accordingly? chair powell: i think we have said that with cecil we will be monitoring carefully what the implementation is showing because of the concerns that have been raised. rep. loudermilk: i thank you. i probably do not have time to get into other questions so i yield back the balance of my time. rep. waters: the gentleman from california is recognized for five minutes. >> thank you. chairman powell, you have frequently spoken about your beliefs and the importance of maintaining the independence of the federal reserve. do you still have that belief? anything changed in the new year? chair powell: no. >> we do not want the fed to be making decisions like where to set interest rates based on any factors other than the best interest of the country. i know you had experience with
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the president publicly and aggressively attempting to lean on you to lower interest rates and i appreciate your continuing affirming the importance of the independence of the fed. it is not just the president. there are a lot of people who would love the opportunity to weigh in on the fed decision. outside of administration officials, what other kinds of people might want to influence you in regard to the fed decision making? chair powell: what other people might want to influence us? potentially a wide range of people. rep. porter: investors, financiers? chair powell: we do not know that people are seeking -- you say might want to influence, the answer is i do not know the answer. many people follow what we do in respect what we do. people often, when i meet them, shy away from giving advice. they do. they feel like they do not presume good rep. porter: you do
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not feel pressure by clinical or special interest? chair powell: no. rep. porter: would you say someone like jeff bezos, one of the richest men in the world, could benefit from having influence over the fed decisions? chair powell: i would not know. rep. porter: what about jared andy ivanka trump? and ivanka trump? do they make different amounts of money based on what the fed does with interest rates? chair powell: yes. rep. porter: what about kellyanne conway? if you have an interest in amplifying the president message? chair powell: i suppose. rep. porter: i will project a picture so the audience can see, but i will also hold up for you. is this you? chair powell: it is. rep. porter: where are you? chair powell: that is a party
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after the alfalfa dinner. rep. porter: where was the party held? chair powell: at jeff bezos's home. rep. porter: when was it taken? chair powell: saturday night after the alfalfa dinner. january,er: the end of 2020? chair powell: yes. rep. porter: can you imagine how attending's a lavish party at jeff bezos's -- attending a lavish party at jeff bezos's home might give off a sense to the public that you are not immune from external pressures? chair powell: i would certainly hope not. rep. porter: what did you talk about at that party with them? chair powell: i did not talk to any of the people you named. rep. porter: can you tell me who you did talk to? chair powell: i mainly escorted my son and his wife and introduce them to general mattis. rep. porter: i would suggest
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that the attendance of this kind of event with these kinds of people is inconsistent with what i would otherwise commend you on for doing a good job of thatirming to the public is counting what the fed is doing. rep. porter: can you name the biggest drivers to making our economy grow since the 1970's? chair powell: the hard work of the american people. what you have seen is tremendous growth in some sectors and less in some sectors and lessen other sectors. the big technology companies were not around 40 years ago. we have seen lots of growth in some areas. other areas, much less so. chair powell: would it surprise you if i -- rep. porter: would it surprise you if i told you women in the workforce are a bigger driver of economic oath and technology companies, and in a span of four decades since the
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1970's, 38 million women joined the workforce and without those women our economy would be 25% slower? when we talk about the health of our economy and gdp growth, what i do not hear about and would like to hear more about is the economic effect of things like childcare availability. in those same four decades in which women grew the economy 25% , the cost of childcare shot up 2000%. do you know how much childcare in america costs today? chair powell: how much it costs today in america? it costs a lot. rep. porter: you are an economic expert. could you put a firmer number. chair powell: my kids are grown up. rep. porter: i will yield back. rep. waters: the gentleman from ohio, mr. davidson, is recognized for five minutes. davidson: thank you for
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the good work you and your colleagues are doing at the federal reserve. just to address comments that came from my colleague recently, is it unprecedented for the chairman of the federal reserve to attend a party or a reception? chair powell: no. it is not the first time a fed chair has attended a party. i am certain is not the first time and it -- a member of commerce -- a member of congress has attended a party. i do not know that we want to say just because you are at an event it is nefarious. you might've talk to a russian on a subway. the way these things are linked for political motives is embarrassingly partisan and bad, and i thank you for resisting all of those pressures. many of them are public. one i am concerned about is the repo market. back home, a lot of people do not though there is such a thing is repo. it is a factor for our economy. some of the warning signs have
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in a blendto the fed between regulatory action and monetary policy to inject a lot of cash into that market. the chairman spoke recently about the need for that to continue for some time. can you explain the process about how the fed is going about reviewing factors that are contributing to this repo spike and what you've learned from the review? isir powell: what happened in early september, there was a spike in the repo rate. the federal funds rate moved slightly outside of our band, our target range for a day urso. -- a day or so. we did not see that coming. we've been asking why is that. one clear reason is the level of reserves which is cash on
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deposit needs to be higher than we had thought. , we set for the plan and executed it and it worked fine to create that. some have called this quantitative easing, but essentially we are artificial injecting cash to produce an outcome the market is not producing of its own accord. i think it is odd that our action is to inject cash from the federal reserve to grow the balance sheet at the fed instead of looking at the underlying regulatory things. what if we talked about and what has the board talked about in ,erms of regulatory factors instead of injecting cash to fix a problem, creating the root cause of the problem and changing the regulatory framework? chair powell: the reason we are injecting the cash is to supply the demand for cash for banks that need to have a certain amount of cash for liquidity purposes. turning to the second issue, we
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also said that without undermining safety, we would look at ways in which regulation and supervision might have interfered with the otherwise free flow of cash to where it is needed. we have done a lot of work on that and the vice chair hit on a broad theme, which i think is important. the idea of making the supervisory treatment of cash the same as that of treasuries for this purpose. you could achieve a better flow of liquidity through the system without affecting the overall level of liquidity in the system, which is just what we are looking for. he broached some ideas for how to do that and that is a profitable line of inquiry. rep. davidson: thank you for that. one of the changes, as libor is going away and market forces are coming, we are talking about replacing the benchmark rate. entities but250
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there is a concern that as you have done this, the best rate is not necessarily being provided. is the fed taking the best proposed rate offered in these repo deals or are we giving it for the special rate top 10 banks? chair powell: i lost track of that. rep. davidson: when the liquidity is injected, going into the repo rate. chair powell: i'm sorry. i missed that. the rate we have been offering on the repos have been settling at a level below iowa we are. that will not -- ioer. rep. davidson: when it is paid out at the high rate, is it paid out at the best available offer the best available customer? chair powell: we do not distinguish. anyone eligible can bid and if you are eligible we will sell.
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rep. davidson: thank you. rep. waters: with the gentleman like to ask the witness to provide more answer in writing? rep. davidson: i appreciate the chair suggestion. i would love to see a written answer for how that is working. rep. waters: the witnesses has requested to provide an answer in writing for the record. the gentleman from north carolina is recognized for five minutes. watersk you chairwoman for convening the hearing and thank you chairman powell for your testimony. if the fcic board member voted against the controller's proposal and describing it as a deeply misconceived proposal that would fundamentally undermine and weaken the community reinvestment act, can you comment on the deficiencies of controller partings misguided --empt to chair powell: i feel like our role is not to be commenting on
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the other agencies proposal. the public is doing that. we look forward to seeing the comments they do make. i can talk about how our own thinking about this. it is not for us to be publicly commenting on the other agencies proposal. >> will the federal reserve release its own proposal in the community reinvestment act, one that takes into account the need for low or income communities? chair powell: that was why we undertook this work. we have not made a decision yet about whether or when to make a proposal, but nonetheless the effort was undertaken with a view to creating modernization proposal. -- >> as you: know, the federal reserve has a dual mandate, price stability and maximum employment. will the fed set a goal for wage growth and you are you considering this approach as part of the framework? chair powell: i do not see us
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targeting wage growth as an independent item. it is something we monitor carefully. our goal as assigned by congress is maximum employment and stable pricing. those are the statutory objectives. those are the things we target. i do not see us targeting a particular level of wage growth. adoptingou considered a floor for wage growth, for example once we sent a certain increase in pay, the fed may consider switching to a 2% inflation rate? weir powell: we have said want to make the 2% symmetric inflation goal more credible and we have been missing it and central banks around the world have been missing their objectives for a decade on the low side. we want to resoundingly achieve 2% inflation. that is the objective of this review we have undertaken.
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rep. adams: let me ask a question about the volcker rule. why has the fed decided to support further changes to the volcker rule given that banks enjoy certain benefits, including access to the fed discount window and the rule was intended to limit banks from engaging in risky investment activities that could contribute to future financial crisis? chair powell: we did just put out a proposal on part of the volcker rule and we think the proposal is entirely consistent with both the letter and the spirit of the law. comments, reading the we just put it out, we look forward to reviewing the comments. rep. adams: i understand you collect along number of daily trading metrics from banks subject to the volcker rule yet it has never been made clear exactly how these metrics are used to determine whether banks are complying with the rule, nor
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have any of the metrics been released to the public. is that true? we. adams: -- chair powell: publish the first volcker rule six or seven years ago and very widely regulators and financial institutions founded to be unworkable. simplerut to provide a set of metrics and ways that companies could conduct perfectly legal activity and have more certainty they were doing so without having to prove every single trade, what was in the mind and the heart of every trader. there will be trading activity around legal activities that were not covered by the volcker rule. that is what we are doing. we are trying to make that will more effective and efficient but doing it in a way that is of -- consistent with the letter and spirit of the law. rep. adams: i yield back. rep. waters: the gentleman from
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north carolina is recognized for five minutes. >> thank you. i want to start by thanking you -- your federal staff and for your collaborative work with u.s. state insurance commissioners on solvency regulation. on solvency regulation. wanted to thank you for the pushback against efforts to try to force their system of regulation onto our unique and sound 50 state insurance regulatory regime. notwithstanding the progress achieved to date, many in the industry of tony the europeans are still resistant and they ultimately seek to change our they mirrorso that theirs. given that, will you commit to directly reaching out to your to tell thempe explicitly that the u.s. will not be adopting an international capital standard, and that we have our own rules that work very well? clearly, west say
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have a state-based insurance regulatory system. the federal is what it is. it is not something we are seeking to change. we are committed to that going forward. >> they are seeking to change us. i fear if we are passive, it will migrate toward them. have you had any conversations with any senior european leaders on the international capital standard? have not. >> any reason why not or is that something that has been avoided? >> no, i am not to -- not involved directly in the insurance. >> i would encourage you to continue to press that. we have a great system that continues to work well. as part is the -- as part of the finalization efforts, the effect of raising capital requirements on capital market activities.
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can you discuss views on the appropriate level of capital markets such as underwriting? >> critical activities in the functioning of financial markets and the economy. they do need to be for -- appropriate to capitalize. think, the level of capital in our banking system is not right. i do not see a need to further raise capital. i know we are pushing forward things, the end game but i do not see them as needed to raise overall levels of capital. >> can you share your views on capital requirements and things that market making and underwriting, how they could affect the balance between market finance in the u.s. system? >> to the extent you raise
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capital requirements, they encourage activity to move outside of the banking system into less regulated and supervised entities. >> there has been a lot of discussion in recent months about leveraged loans and others monitoring the market. discuss the issue, they are sometimes i think referencing different things. to help us to get on the same in your opinion, how would you define leveraged loans question mark >> you are right that there are a lot of different ways to think about it. it reasonable ballpark would be something rated -- below triple d. you could also say an amount of leverage. a leverage of maybe six times cash flow. there are different ways to think about it but i think the
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best way is probably noninvestment grade. >> do you think there is a difference in leveraged loans in the banking sector and the nonbanking sector? >> yes. crisis, there the has been an trend over time for leveraged loans to be held by longer-term holders outside and that is accelerated. far fewer of them are on the books of banks with insurance and the safety meant -- safety net, as opposed to collateralized loan obligations or mutual funds or pension funds or hedge funds. that is where the loans are going. become a distribution business as a post which are additional lending business were banks would put it on the balance sheet. that is not really happening. you have a bank performing on behalf of a sophisticated
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investor that is stably funded, we hope. it is something we need to keep monitoring. >> thank you. >> the gentleman from illinois is recognized for five minutes. >> thank you for being here. i would like to return to the topic of climate change for a bit. extreme weather events have had a great impact on the midwest and working class -- working-class communities. .hey are often the hardest hit climate change is a risk to the financial sector. in a discussion last week, it was said that major institutional investors want with fossil fuels because of the concerns about climate change. england decided to insurance companies
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against the risk associated with climate change. the federal reserve develop climate related tests? if we are monitoring what the bank of england is doing. those stress tests are not like ours in the sense of they would have an indirect effect on things like that. they are trying to make an assessment. decision onmade a things like that. >> climate change into the economic forecast will become more important. disasters like hurricane maria in puerto rico, currently labeled transitory risks by the federal reserve. we know events will become more frequent and severe. increasey result is an in economic losses and physical
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risk, the brunt of which to be felt by community -- communities of color. when the fed develops its economic forecast, when should climate change shift from being a transitory factor to a structural factor? forecast -- people like me write-down in the forecast, they are not for the much longer term. what is important is the next two or three years. on ate change operates longer cycle in that. of course, as severe weather becomes more common, and that is connected to climate change, you will see those things in -- entering the forecast period. >> in a recent speech on the economics of climate change, the
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fed governor said by participating more actively and climate related research, the federal reserve can be more effective in supporting a strong economy and a stable financial system. do you agree with the statement? if yes, what more will the fed do in the future to mitigate financial risks of climate change? >> i think it is incumbent on us to do the research and understand and locations of climate change, supervisory , and stability. that is what we are doing. the public will expect that we do that and we need to make sure is financial system resilient. >> do you agree with her statement generally? >> yes. >> big bank mergers and market concentration.
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three months ago, the federal reserve improved -- approved a the sixthich created largest bank in the u.s. one of $450 billion in total assets and the federal reserve's own research suggests that the failure of this and the 250 billion would be far worse for the economy than the failure of five separate $50 billion banks. furthermore, the former chair has warned that the fdic would not be able to wind down a bank, without imposing significant on the deposit insurance fund and potentially destabilizing the financial system. can the federal reserve justify its conclusion that this tonsaction would not appear result in meaningfully greater or more concentrated risk to the financialof the
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system? >> yes. i think we can and we did. we evaluated these mergers under a clear statutory framework transparently. public hearings on it, we looked at all of the statutory factors. you have two banks coming to perform a regional bank akin to or smaller than many of the regional banks. batid not appear to me to -- to have significant financial -- at all. tennesseetleman from is recognized for five minutes. >> thank you, mr. chairman, for appearing today. statements in the opening remarks about the coronavirus and the questions you have had today. i noticed this morning in a report that axios quoted from saidlobal tracker and it traffic at u.s. ports is
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expected to climb in february most 13%, 10% year-over-year. assuming those numbers are impact, if any, would that have on the retail sector and what impact would that have on the overall economy economy?mark -- of uncertaintyot outside of china and particularly the united states. we do expect a consistent with that report that there will be some effects. the question will be what will be the size and scope and will it be persistent or something that just passes through? the bottom line question for us is ultimately, does it represent a material change in the outlook, something we should react to with monetary policy question mark that is the question for us.
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it is too early to say. we will monitor it very carefully. that is where we are. lines, they same are quoted from the bank of america security report. they said they surveyed 3000 companies about the global supply chain and many companies around the world are looking at relocating. -- looking at other areas of south asia and india, also north america. i do not know whether you are familiar with the study, the bank of america securities study report, or not. are those numbers, those anecdotal statements, is it
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consistent with anything the fed reserve is seeing? >> i am not familiar with the report and therefore cannot comment. there are a number of channels through which this could have an effect. the second is our ability to export to china is less because exports could go down. chain.tioned supply many u.s. companies by intermediate goods with their final product. supply issues, we do not have theevidence on that financial markets themselves can be a channel, which can affect the economic behavior. it is way too early to say what it will amount to. we will have to wait and see it. to be confident about anyone's assessment and there are a range of assessments. >> i think you -- i know your
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answer but i will ask anyway. the report mentioned a number of reasons. china, but also, automation. an increase in automation, does that sound consistent with lee coel -- relocating supply chains? >> yes. there has clearly been on the part of american companies, a lot of activity moving to other jurisdictions like vietnam in particular gets mentioned quite a bit. i saw a report last week and a number of other companies have had american businesses moving ofduction activities out china into other locations. that has certainly happened. >> including the united states. >> yes. along those lines, i represent part of mensa's --
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memphis and west tennessee's. -- west tennessee. if you's ago, they were locating a new facility there, 1000 jobs. the of had questions on the minimum wage. they will start their wages at least $50 an hour plus benefits. we talked about these new jobs in combination with automation in terms of packing and shipping. you have talked about concerns of automation and the effect that will have on employment in the future. can you see the two coexisting with this amazon plan? over the last 2.5 centuries, we have's see in this technology, there has been a concern that it would replace human labor and that has happened. it has made human labor overtime more productive. current displacement of workers but over time, advancing
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to rising has led incomes. that does not mean there will not be a lot of pain for people in the short term. nonetheless, the process overtime has led to rising incomes. the gentleman from florida is recognized for five minutes. >> thank you. sherman, welcome to the committee. i would like for you to explain past almost three ands, when you are talking on the committee, speaking in terms of how well the economy how we have more opportunities for jobs in the economy, when you start speaking, the dow was up 125 points. while you were speaking, it went down. can you tell me why something
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like this occurs, who is speech, thatyour would cause the dow to go down? how do you explain that? >> i really cannot. i'm not following the market as i answer your questions. >> when you started off, the dow was up and then it went down. to that or does it not mean much to you? do you react to the president's tweet and also about how it went down and the cutting of interest rates? is it just something that happens? and i areeagues
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completely focused on using our tools to support the american people and the achievement of our goals. >> from a staff in point, starting in july, july of last by three different times, the interest rate was cut by one quarter 1%. to stimulate the economy when you made those all the way through october, a quarter percent cut in the interest part of it was to offset global factors. the slowdown of growth has gone on and on. we felt the need to take out the insurance against the effect that might have on the u.s..
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potentialo offset any and take out some insurance. the third reason was we wanted to do what we could against a prolonged shortfall of inflation from our 2% objective. we supported growth to support moving back up. those were the reasons we did those three things. had.is the thinking we correlationre be a between the growing due to the crashes and the slowdown which we talked about a great deal in the last couple of months? many are not able to get homes because of high debt. a high debt to income ratio. could there be a signal that there is a great need to address the mounting student debt crisis?
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>> i would say rising student debt is a concern. there is increasing evidence that students who cannot pay have difficulty having normal economic lives and buying homes. i have not seen any evidence that was suggested as an important factor currently today driving the housing industry. i would say activity in housing has been moving up here over the last seven or eight months as the effect of lower rates and the overall labor market are showing up in more house building and housing sales. my time is about to expire. i have a lot of students in my congressional district and many are coming out of school.
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one thing i'm concerned about is the housing issue. market, howhe job it can best share in the american dream like parents, without getting the help from that, i yieldith back. >> thank you. the chair wishes to remind members we have a hard stop at 1:00 p.m. today. the gentleman from massachusetts will be the final member to ask questions today. mr. hollandsworth is recognized for five minutes. time.ppreciate the in private and public, i have been extremely couple mentor he the work you and your colleagues have done, not only in calibrating conditions to match the current economy, but the current framework by which you make your decisions and how you present that in public. i know a cornerstone of what you are trying to do at the fed is bring more transparency to the fed and some decision-making and the press conferences you have had have added a lot of
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transparency to it. it is hard for me to understand challenges in the capital and the inability to pin especially when 2020 started. youink i sent a letter to signed by every member on the side of the eye on financial feelces, trying to get a for what are the changes, what is the timeline for those who would undertake the stress test, getting those changes. they're trying to make decisions with multibillion-dollar balance sheets, trying to make their plan. the time is now upon us. i feel like they're being bit -- make.
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you and your colleagues have been a little more hesitant to answer that. >> i cannot give more clarity than exists. we will do that in a way that is timely. >> i have had a general agreement that some of the aspects of this need to be calibrated. we felt like we were doing the right thing in doing so but perhaps we had unintended effects. area wethis wasn't the needed focusing on. some of this require significant recalibration going forward would you reflect current it -- current conditions and what may be adding to significant
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reserves in the institutions the levels of can you tell me how it should reflect that? data.chers that with how me what this means. >> capital levels are much higher. thell agree that during crisis, they were not adequate. are they too high, are they too low? for one.ress tests, is equivalent or maybe a little stronger than what happened during the global financial crisis.
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see, do these institutions have the wherewithal to remain tol-capitalized enough continue to have the confidence , and they do, but not by a giant margin. it does not suggest capital is too high, but just right. stress tests are probably a great test for that. >> you could see how it might be concerning for institutions caught in a bit of a circular logic. tests and the stress that is exactly right, without going back and changing underlying factors. >> you can say it is about right and a matter what the bar is. back and looko under the hood and say, are these assumptions correct? is it the right way to do that? is higher than
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with the stress tests have indicated, but we are not asking the question, is this tests in the right thing and are we doing it correctly and doesn't include the right variables. i think that is what we are looking for and when we can inspect that reveal, handsomely. we had a confidence on the stress tests last summer with experts, internal, external, academics, we doing it all the time. everything we are doing with the stress test is transparent. it is not like we have not adjusted the stress tests. >> i also want to thank the activists in the room who have been organizing. i know it been raised by a rights organizer that activism can be a full-time job. we thank you for taking it on.
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i think the chairman for testifying before the committee today. impactisions you make do how many jobs we have and who has what job. we want prosperity to be widely shared. we need policies to make it happen. well-paying jobs are available even for small time. right thethe financial rewarding job. secured by the 14 amendment. a job to all people who want to work and are able to work.
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dr. king's legacy is often reduced to one speech. the march on washington is also mischaracterized. for jobs and freedoms, in march for economic justice. credit met in boston. i do not think she gets enough the way she -- pushing the fed to adopt a full employment mandate, was actually standing behind president carter as he signed the humphrey hawkins act into law, and that is the reason you are here today. in the interest of time, if you would indulge me an answer as to sync list possible, yes or no, , fullpersistent concerns employment? by full employment, and i mean
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anyone who wants to and can work will have a job available to them. >> thank you for the history. that is our goal. we're never going to a comp push the goal. we certainly made some progress. >> yes or no? >> i do not know enough. >> guarantee a job, the industry i was providing, that anyone who wants to and was able to work, by all indications, the u.s. is it sure that most have seen that well above target while we have a most never seen inflation above target? >> that is true.
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>> meanwhile, black unemployment remains -- of white unemployment. the fed began raising rates in 2016 even though inflation was still below target. when rates go up, unemployment tends to as well. if the fed -- to the fed consider how raising rates would disappoint -- disproportionately impact those already struggling to secure employment, like communities of color, our immigrant neighbors? >> unemployment has continued to go down significantly since we rates at the end of 2016. >> to the fed consider how raising rates would disproportionately impact those already struggling to secure employment? >> our consideration was really that the right thing to do was to get monetary policy back to a place where a flack -- reflected an economy that recovered quite a bit for the benefit of all
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people, including minority people. >> a lot of people still recovering. given interest of time, there have been no signs of the economy overheating, anyone out cutting rates, is it possible you began cutting rates too soon? history will judge that. we have to make decisions in real time. we have learned something since then. >> would you still have rates whenaising the the fed did? >> i did support it. hind -- hindsight is 2020. >> would more americans have jobs of the fed had not increased rates over the past three years? lows, but it year is a fair question. >> thank you.
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>> about three hours now,, he has covered the things he would have expected us to say. he said the economy is basically in shape. he referred to the coronavirus in china and said they are monitoring that carefully. amount on climate. mckee is coming to us from washington. were there any surprises? michael: no surprises. these has become integral market because after every fed meeting, every member of the fed speaks quite often. we have a good idea of what they are thinking at any given time. this was more of a chance for the fed chair to speak of the coronavirus for the first time and he did suggest that yes, the fed anticipates there will be an
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impact in china but how much of that spills over to the united states and the global economy, it is still too early to tell. the fed will continue to monitor. you could not expected to say a whole on was a mat. there were questions on the repo issue but nothing too difficult for him to answer. that a lot of questions about what congress and the fed could do in terms of the next recession. a lot of questions you will talk to people about in new hampshire , to the political sphere. >> jay powell was sending messages to president shumpert the same time he was sending messages right back to jay powell. of theas not a secret fact that he think the government should get the fiscal talks in order. he is worried about the deficit. he was asked specifically about president trump tweeting saying
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the stock markets are going down. >> jay powell answered the way we usually does, saying i did not know he did that and that the markets went down. you could point to the fact the justice department announced an antitrust investigation against big u.s. companies has been recent for the market going down today, powell did what he intended to do no news. california representative katie porter holding up a picture of and black ties standing outside she tried to make something of it. how's that i did not talk to anybody.
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>> if you do, make sure you get a picture taken. >> i do not get invited to either one. thanks so much for joining us. what is going on with the markets, abigail. >> and financial markets more more -- largely, transfers in the u.s., we see gains both up for the second day in a row. the s&p 500 putting together all-time highs. president trump tweeting that the markets are going down. behind the small a lower, it could be the fact the fed , that it is powell too early to measure the impact of the fires and the possibility
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that would be more damaging than the early estimates saying it could take off in the first quarter. we will be taking a look in a moment, and also, we have fonts selling off so overall, moving out of assets, that is why there is a strong risk asset. it has been widely known, crude oil is not fared well. -- has not fared well. there could be a demand problem with the economy shut down to some degree. we're looking at the s&p 500 and -- right now, we have stocks for the first time doing better than bonds because bonds over the time period with the
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s&p 500 going higher, over the course of the coronavirus since we have been tracking it, the s&p 500 is finally doing better. up 73%, sprint. up, on it getting approval for $26.5 billion. the takeover of sprint. very rare to see the acquiring company moving up. it has -- it is up 11%. it tells you how much investors want to deal to come together. about time. a long time coming. thank you so much. first in the nation primary, we welcome the state of new hampshire, chris. rick davis back with us as well. welcome. thank you for joining us. a broad question. give us the state of the state.
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how are you doing? >> we are doing well. businesses and families moving anywhere from the northeast. for families and individuals, that is why economic prosperity and a strong economy is important. it provides more flexibility. it is always a challenge, whether investing in mental health and opioids, whatever it might be. we have a lot of opportunity. >> why would voters be motivated to come out to the polls? it seems like their life is good and they do not want it to change. say yes, we out to are very happy and donald trump will get a lot of voters out. we knew about 100,000 votes today. actress spend money, but spend
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time with folks. some candidates are better at it than others. tonew hampshire, you have look someone in the eye and say, who are you as a person first. then we get out of policy later. a slight what new hampshire is a good litmus test. we are very -- very purple and politically diverse. it really takes someone who spends time with the individual. you kind of earned the vote. responsibility of being the first litmus test for the rest of the company. -- the country. >> you here with the candidates are trying to get out of it.
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>> my guess is a lot of pizza places are feeding a lot of campaigns but with pizza at night but there is an economic impact. that as muchk at is the responsibility we have as citizens to be the first. it is a responsibility we take seriously, which is why given what happened in iowa, we just want to confirm with folks, we did it right. we have done it for 100 years. changenot really anything. we have done it 100% reliably 100% of the time. one person, one vote, paper ballot. it is counted and results come out. it is simple. we know how to count. people to be sure understand there is a lot of reliability. because of that, a lot of folks come out and participate. >> we are hoping to get results tonight.
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we will get them from new hampshire. >> we do it on a paper ballot. the only course that come out of those optical standard -- scanners, there is no internet or anything like that. results and they are confirmed publicly. they confirm the results and they are called in. it is pre-simple. >> in terms of the economic front, we hear a lot about the good numbers in the unemployment rate. what are challenges you face in new hampshire? heard about things like a formal housing and infrastructure, a challenge for the rest of the come -- for the country. one is our opioid crisis. we have had a great downward trend of opioid deaths here. the of had to rebuild the structure. the president made a 50 the dollar investment in hit -- in new hampshire and help us get they to completely rebuild system with a lot of wraparound services. mental health.
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you see this transiting all over the country. you do not just put more money into it. you need stakeholder driven solutions to break hope -- break down barriers. access to services more than anything else. i will take roads and bridges over most states. we are doing well here. a lot of snow and things like that, a lot of whether to deal with. the guys are pretty terrific. we are making a huge investment in clean drinking water. a $400 million investment, no taxpayer dollars. the settlement money we got, we are doing it taxpayer free and allowing the dollars to go locally. the idea is not just to spend more. voter in a town meeting can have real control over how the money was spent. that is the difference between new hampshire and the rest of the country. control and low taxes.
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that is what it is all about. >> right now, we will turn to mark crumpton in new york. polls indicatet bernie sanders will win today's new hampshire primary. he has opened up a lead over south bend, indiana, mayor pete buttigieg. , sanders isrren overtaking bryden for the top spot according to a poll. fast track promising tests, drugs, and vaccines to help slow the spread of the coronavirus. a viral outbreak that began in 43na has affected more than thousand people around the world and more than 1000 people have died. cases have been confirmed in more than two dozen countries. thousands of palestinians rallied in west bank today to reject president trump's middle east peace plan. the demonstrators also expressed report -- support for palestinian leadership as a tried to gain support for a
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resolution opposing the planned. mr. trump's middle east plan announced that the white house sides with israel on long most contentious issues of the decades-old conflict. the european union will offer britain unique assets -- access if the u.k. greece to stick to standards, that is from the commission president who dismissed by minister boris johnson passes idea of brokering a loose trade deal with the eu. thesaid she was surprised prime minister even raised the possibility of such an arraignment full -- such an arrangement. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. that to you in manchester. >> thank you. coming up, we will talk about the issue of climate and how it
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affects the state of new hampshire. ♪
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>> people are voting even as we speak in new hampshire. chiefis bloomberg washington correspondent. what do you see out there? kevin: the governor was just here as was lindsey graham. it has been one of the most popular polling stations here in new hampshire. we are tracking to see two main developments. first is turnout. the second is, who will win? is bernie sanders going to be a look to take this thing from pete buttigieg?
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the third-place finish is important. for many candidates, elizabeth warren and amy klobuchar, should they not be able to get their place, they will have a difficult case in terms of how viable their campaign is. former vice president joe biden speaking to reporters earlier today. he is suggesting he is in this for the long haul. he crisscrossed the entire stay within the last 24 hours well into the campaigning late into the evening hours last night. we will know in a few short hours with the finish is. i talked with david on the reelection campaign. they feel incredibly confident about their chances. they are not just looking at enthusiasm, but also economic indicators. just following up on former vice president joe biden
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for a moment. she also said he would not hang out tonight. if you thought it would not go well, would he have hang -- on around question mark is a good point. for south carolina, it is a firewall the biden campaign talked about for months. him, it really is an example of how strong he feels support is within the african-american community and within that particular state. finish strong,g and i've spoken to advisors in the last one for hours who told me they will double down on his , south carolina has a strong military background and a strong military community. he has been running ads in new hampshire talking about his military expense. i would anticipate he will continue to do that in south carolina.
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>> finally, a lot of independence, -- independents. could that break pete buttigieg's way as opposed to bernie sanders question mark >> obsolete. what is interesting here in new hampshire is that independents are able to vote in this election. a lot of people flip-flopped between the parties. they want to know and shake the candidates hand before they make up their mind. they say what are you ready for, i have not met all the candidates yet. >> kevin cirilli reporting from bedford, new hampshire, april -- we're back with chris along with our bloomberg contributors. what about the point about the independents. >> a huge factor. we have more undeclared voters
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than any party. right. the running joke is how to why no? that is the mentality here. a lot of states wait -- a lot of -- thereforentil shall he will not be great for folks like elizabeth warren and joe biden. i think biden will make a big shouldent and could and win still. that should give his campaign a resurgence. to whatbe a wild ride is likely a brokerage and -- convention. >> i noticed that have been it wasand a lot of coming out of republicans. have you seen any migration from the republican party to independents? at the 2016ok
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rolls, we have same-day voter registration. a lot of folks will show up there. then they will move or whatever it might be. you see a national -- natural down cycle and it comes back up voteople reregister to whether through this primary process or the general election. that is the national cycle. there are slightly more republicans than registered democrats. you are a very purple state. we have to work a -- work across the lines. a couple of months in, we negotiated and made it right. to work together. that is why again, it is another reason answer is a good litmus test. for 20 years, a democratic government. i am not the first republican -- that is where it goes. you have to remove votes person-to-person and come up with results. >> i know in your state, there was a change in the residency requirement in the voting law,
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and there was some consternation about that and its impact. have you talked about that at all? >> sure. in 2016, we were the only state in the country where you do not have to be a resident. you can be domiciled here. vermont, you just had to be a resident. we had a funky loophole and we have closed that and said you have to be a resident in those states, then you have to be a resident in this state. a lot of college students are not residents but that means they can vote in their own state. i voted back here in new hampshire. no big deal. our rules are now the same as everyone else's. >> so you will not see a drop off in other words. absolutely. some folks especially in the democrat side might be frustrated because they like the loophole to be open. .here is not a lot of confusion
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>> 2016 in the presidential race, you are slightly blue. taylor clinton won the state by a little bit. you have protected president trump will win this time. what is the change question mark's we are very purple. 2500.y clinton won by the house, the senate, and the governorship. so we are very purple in that way. what you are seeing now and what we think you will see in november is because of shock, saying we will focus on the economy and create economic democrats say what he is from zynga possible and it is. he has done it. those successes are not pie-in-the-sky hopes and dreams but they are what -- what will vote. >> what has he done? we didn't get close to 4% growth. >> tax cuts were phenomenal. hundreds of millions of dollars
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were reinvested in new hampshire -- into new hampshire because of those. the tax cuts we did on a , the usmca,vel huge. like new hampshire on the border of canada, we have a lot of trade with canada. opening that up and doing at the right way so canada and the united states benefit, that is a big win for us. regulatory reform. we have more flexible in terms of how we spend our dollars at the state level and businesses in terms of how they do businesses, it is a huge opener for us. we have gone from being second fiddle to massachusetts to nine after leading the pack in terms of being a pro-business state. the lowest poverty rate in the country got lower. these are big economic successes for us and the president had a lot to do with that, and the governor. >> you have been aggressive in andng to attract businesses
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employees into new hampshire. part of the problem you have's demographics. you could use a bigger population with more and more young people across the state. >> we have more millennials moving into new hampshire now than any other state in per capita. we ranked number one state in the northeast to move into because we look at workforces years and housing. we making a lot of investment in terms of providing a localized tax credit, streaming regulatory processes. build affordable housing. have you back. you are not done yet. great to have you with us. forinue with bloomberg continuing coverage. this is bloomberg. ♪
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>> is his balance of power on bloomberg television and radio.
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we go down to mark crumpton in new york. mark: the latest polls indicate that bernie sanders will win today passes and enter primary. he has opened up a lead over mayor pete buttigieg, joe biden, and elizabeth warren. a new national poll has sanders for the topiden spot. senate majority leader mitch mcconnell is urging senators to reject the measure that will restrict president trump has is billy to take military action against iran without congressional authorization. a group of republicans have joined with democrats to rein in the president after expressing frustration with the administration's justification generaling iran's soleimani. , theirphilippines president plans to scrap the military agreement with the
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united states. that was likely since a six-year term that began in 2016. it is it's better to bring the filkins closer to china. he has been unhappy with the u.s. since he canceled the visa of a man who oversaw his deadly drug war. weinstein's harvey rey trial will not hear from the mogul himself. its casese rested without calling weinstein to the stand. the decision came a day after the defense got a boost from two witnesses who cast doubt on two of weinstein's alleged victims. maintained that any sexual encounters were consensual. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm am mark crumpton. this is bloomberg. back to you in manchester.
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david: thank you. we are here in new hampshire for the primary. report on the importance of new hampshire. >> we are going on to new hampshire victorious. >> paper in -- people in new hampshire like to say that i will picks scorn and we pick presidents. backumbers would seem to up the claim. in 14 of the last 17 new hampshire primaries, the winners went on to be elected resident. the other three come the second-place finisher ended up in the white house. some democrats say this year, maybe the result should come with an asterisk. from vermont, is and elizabeth warren is from massachusetts. joe biden's allies point out that candidates from neighboring states always have done well in new hampshire. biden is downplaying expectations while going after sanders, a self-described socialist.
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>> he calls himself a democratic-socialist. we have already seen with donald trump will do with that. spent three .6 million dollars on tv and radio ads in new hampshire. warren and biden were not even close. warren spent 5 billion -- $5 million on ads in florida. belief capitalize on the that a new hampshire, u.n. votes in person and not on the air. the complication the front 1 -- front runners had not counted on , pete buttigieg is with them. pete buttigieg: we are building a coalition calling out to everybody, grasses, moderates, , to bring about the better day. >> the race could be decided by voters were not even registered democrats. 40% of them are likely to be .ndependents watch her years ago, three fourths of them went to sanders. that turned a tight race with hillary clinton a landslide. >> we welcome the former chair
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of the new hampshire democratic party, now a columnist with the new new hampshire union leader and a committee member of the democratic party of new hampshire. she is cap three sullivan. you voted but you have been out for other races. what are you seeing? >> i am seeing some excitement. people are holding and waving signs and thing to come in. places may quiet. you see a lot of excitement. people are steadily coming in to vote. between 5:00 and 7:00. nashua, our second-biggest city, closes at 8:00 p.m. and not
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7:00. a lot depends on how many people show up to vote at the end of the day. if there are long lines, if you are in line at 7:00 or in nashua that 8:00, you can vote. they put a policeman at the end of the line exactly 7:00 and exactly 8:00 in nashua. you could be in line for a half hour in still vote. we might not get votes until close to 9:00 and 10:00 in some locations. isthe issue of turnout highly debated since iowa. it was flat. your secretary of state has predicting and predictions are just that. voters90,000 democratic showed up to the polls. a slight improvement, 30 south -- 30,000 since 2016. withd trump shows up 15,000 people at his event left eye. what are you seeing on the ground for democratic activists wouldn't heand why
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be more excited for what you have competing in new hampshire? probably saw bernie sanders last night at the university of new hampshire about 7000 people, the events that, elizabeth warren or amy klobuchar, pete buttigieg, thousands of people have, to see the candidates. not people from out of state like last night with president trump, and if you read some of the stories of how many people were not from after. which is great, come spend money, we love it. there is a lot of excitement. ybor looking forward to finally cast their vote today. out atnder if you look what happened to iowa and some to take responsibility, what is on how much that to endty is
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the first in the nation caucus? >> i hope not. understand, the caucuses themselves went great. everyone was happy. it is when apple failed, that was a problem. happen, thehing to backup plan, to: results, that of a problem in part because republicans posting a phone number and calling in an interfering with the backup plan. i wish with the dnc would focus on is, what i would do if it were me, i would say, mistakes were made, the party takes responsibility for that. but we will not point fingers and we will not accuse anyone of anything. we want to focus on promoting our candidates in the upcoming events, talking about the great things they're doing and great plans they have. ron withix what when iowa and we will investigate to
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find out what went wrong. let's stop with the discussion of who did what and all of the rest of that. it is not helpful. the most helpful thing is to say, let's move on and take responsibility as a national party. i take responsibility. i was on the rules and bylaws committee. a lot of responsibility is out there. let's take it, admits that mistakes are made, and move on. let's stop with figure pointing that i have seen coming from some folks unfortunately. plans doden, the great not include staying in new hampshire tonight. is that a statement of what he expects to happen in new hampshire? benefitd think he might last minute. >> yes, he does not expect to have a good finish here. before the polls close. >> i am sad about that because a lot of people support him and
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are out cheering for him and he would -- it would be a nice for him to thank them on his behalf. i guess he felt the need to move on and learn from new hampshire and move on. i think what has happened is the other votes that might have gone to him are going to other candidates. i think there are a lot of reasons. theye have spoken and said liked him a lot and think he is great but they worry about, age is sometimes a factor. they worry about his ability to move forward. change is something people like to talk about. lecture years ago was a real change election. as much as much is everyone loves joe biden and barack obama, there is some stuff they would still like to continue to see some change going forward. >> one big question i have had, n this primary wo
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by 60% quadra years ago. he has spent a lot of time there from then and now. but he is only pulling lesson .5%. what happened to his support question markwest with half decided to look for somebody else. >> where did land? quite i think a lot of it has gone to elizabeth warren and some of it has gone to other candidates, even those who say they are moderate. we have heard about the intensity level of bernie's rose -- bros. >> it was not all about bernie. -- ie to say it because it love hillary clinton. a lot of it was a desire for change and devote for someone who is not hillary clinton. >> rick davis and genie will all stay with us here. this is balance of power on bloomberg television and radio. ♪
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>> we are back with kathy sullivan, former chair of the democratic party. we have davis and jeannie. we have a national poll now, not new hampshire today. quite a few pulls out have their -- bernie sanders really breaking out. it is with 21%. of mr.g out well ahead biden, who is down 14%. is this where things are going question mark is the party headed toward bernie sanders? said and nothing we can say that.
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todayl have new hampshire and it will gone on for a while. states and early then super tuesday where all hell can break loose. and these and texas other states. there is a lot of campaigning to be done between now and then. only 80 -- 80% of democrats are looking for somebody besides bernie sanders, it does not mean they will end up with them, but is looking. i think it is way too early to make those protections as to who will end up being a nominee. >> the buzz we are around thecratic circles is, relatively non-decisive iowa, new hampshire looks to be close across the board. maybe two tears. pete buttigieg and sanders at the top and the rest of the bottom. his slugging fest in south carolina and a massive 14 states
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in one day. tobe no one is going accumulate. five candidates and seven with tom steyer. maybe all of these guys will wind up at the convention in a brokered convention. all of the pundits love brokered conventions. >> i do not like that idea. historically, if only one party goes beyond the first ballot or brokered convention and the other party only has one ballot, the party with the broken convention usually loses. that.d rather not see so again, political history does not seem to mean anything anymore. iybe it will be a great thing don't know. i would rather go into milwaukee -- milwaukee unified under one candidate. i think pennsylvania is later on. there are fairly large states after super tuesday, later in the process.
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it would be funny for the states that moved up because they want all of that influence a minute is actually new york which stayed late. >> an important point. someone told me it will not help candidates to remember early states but it may will help candidates to -- when the last few states. >> we care a lot about electability and we understand very sanders seems to be in the polls. how are democrats in new hampshire measuring the issue of electability as far as you can tell, and do they see bernie sanders as electable nationwide, broader than new hampshire, particularly in apricot -- an economy this good? isthe issue of electability driving us all crazy. people have been undecided our own minie strategists trying to figure out the vessel and to support. forget electability.
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low for the person you like the best. it is probably the most electable person. we do not know a november at this point, we do not know what will happen between now and then. let's focus on who we like the best, you will feel good when you walk out of the polls. if we get caught up trying to figure out who the american people will want to vote for months from now, we just do not know. we have to focus on why the plans are so good and what donald trump is doing that is so bad. exactly. you have to beat donald trump. you have anybody on that basis who can beat donald trump? basically said the majority of voters think he will be elected. the majority think he should not be. at theink two things same time. that he will be and that it is only a plurality. >> my job in the job of democratic activists out there is to get pumped up and say we
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will beat him. is trying to put a dampening, almost -- on people in the country. governor inad your here as you know. in terms of unemployment and growth and things like that, there is a story like that. saying i am doing well for you, ?hy pick the next person look what he is doing on environmental regulations? companies,wing coal waters, we are throwing out clean air standards. he is talking about cutting back on social safety net programs, things that are not good for the country. at some point, you have to look at the whole picture and figure out what is good not just for me today, but for my kids and grandkids. democratsat we as
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have to do. get people excited and work hard to elect a new president. >> it is a real treat to have you today. that is the former chair of the new hampshire democratic party. our special coverage of the new hampshire primary which will be kicking off tonight at 7:00 p.m. eastern time. this is bloomberg television. ♪
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>> this is balance of power and i am david westin. it is time now for the stock of the hour. it was largely dependent on dish creating a new mobile carrier to create competition. dave wilson is looking at how dish plans to achieve that. dish networkny
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have been buying up wireless frequencies for the better part of the decade and a half. .here was always an assumption dealst july, they made a with sprint and t-mobile. pretty paid -- a a prepaid carrier. they get more out of it. they will in essence take the role sprint has now. they have seven years use of t-mobile's network and already have a head start in terms of giving boost mobile the 9 billion figure. that this company has been struggling with their main satellite television business because they have been affected as much as cable companies and the directv unit has. the good news is that seems to
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be turning around a bit and is important in terms of the context of the wireless business because they have already got a spectrum. it is a matter of building out a five g network. they figure they will spend $10 billion doing that. you have to have the money from somewhere. to the extent it is coming from the satellite business, they will be in a better position to finance this expansion. at can see you are looking three companies that are in the cell phone tower business. they stand to benefit from customer.s the last one builds the network. that may mean more business for them as dish moves forward. it is looking like a real plus for the wireless business. >> thank you to dave -- to dave wilson. rick davis and jeannie. ?hat are we looking at
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>> mostly, can new hampshire do from what i will is not able to do? i think it is an open question. and can theyrs keep up with excitement four years later. with pete buttigieg and amy klobuchar, she is obvious a trailing a little on the polls. >> is an important for the democratic party to narrow the field? what about republicans. how long until they narrow the field? >> there was a decent field of candidates all the way through april and at some point in time, people ran out of money or right now, the most
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notable campaign is vice president biden, who is running out of money. a super pac asking the donors, please give map -- give now. we are in a crisis mode. he has left early in new hampshire, conceding a defeat before they even finished voting to go down and try and resurrect his campaign. me is,gest question for where are the independents going to go today? 40% who will vote in the new hampshire primary will be independent. they make a big difference if they gravitate toward one candidate. right now, they are buttigieg seems -- pete buttigieg seems to be the candidate to appeal to those independent voters. >> probably more moderate than progressive. to choose between centers and buttigieg, they may as well go to buttigieg. >> to they go to, say, amy klobuchar, or warren?
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biden has -- the super pac's warning and some headlines the doomsday scenario with biden. .t is looking very bad >> she has got some energy. be a recipient -- recipient of independent votes. it will be interesting to see how it all spreads out as they are voting right now. >> many thanks to our panel. back with us here .n the new hampshire primary this is balance of power on bloomberg television and on radio. ♪
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>> i'm mark crumpton with bloomberg's first word news. the world health organization is turning do outside experts to fast track promising tests, drugs and vaccines to help slow the spread of the coronavirus.
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a viral outbreak that began in china has infected more than 43,000 people around the world. and more than 1,000 people have died. cases have been confirmed in more than two dozen countries. egypt's fast-growing population hit 100 million today according to official statistics. that's up by a staggering seven million since the last census was published in 2017. the egyptian capital, cairo, has become so congested and overpopulated that the president's government has decided to build a vast new administrative capital in the desert. critics say that will further drain resources in a country already at the risk of drought. the european union will only offer britain unique access to its vast single market if the u.k. agrees to stick to the block standards. that from european commission president who dismissed british prime minister's boris john's idea of b

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