Transcripts For BLOOMBERG Bloomberg Markets Balance Of Power

David an awful lot in this bill. 370 billion dollars to replenish the ppp program, 700 50 billion for hospitals, 25 billion for testing. What is not in the bill that you think still needs to be done . Rep. Pelosi first let me say how pleased i am with what is in the bill does weeks ago the secretary of the treasury called me and said he needed a quarter of a trillion dollars in 48 hours. That would mean that by tomorrow two weeks ago the republican leader went to the floor and said it was 250 for the program and that is it, we are not making any other additions. We objected, the Democratic Senators objected. They made a counterproposal which was resound late rejected by the republicans. Refused tok, there negotiate until last thursday. Then they realized they had no chance to do the 250. There was so much more urgency. In the bill we have pushed the 250, that was what we helped put together. We support our Small Businesses, their entrepreneurial spirit, their optimism, their source of jobs and wealth in our country. There is no question we would be supporting that. It took a longer time than it should have to agree we needed to make sure that even the smallest of Small Businesses would be included in that and that would we would be addressing our health needs because the key to opening our economy, the key is testing, testing. The 25 billion and the 75 billion to our hospital for all of the purposes that serves. Finally, they agreed to a package we put on the floor at the time. We even did more. Now we can move onto the next stage. Does this take care of the rescue part as opposed to the recovery . In the past youve talked about rescue versus recovery and talked about assistance to state and local governments. Do you regard that as part of rescue or recovery and what are the prospects of adding that done . There are three phases, first emergency, that is what we did in the bills we passed in march. We started with testing, testing. Here we are a month and a half later and the administration has not fully implemented it. After this bill, hopefully they will. That was part of recovery. Then we went into mitigation. Mitigation for damage to the economy with the initiative to protect our Small Businesses, to provide more assistance in terms of health care and the rest. Now we have to go further into mitigation to help state and local. State and local means this it means the health care worker. It means police and fire, the first responders, the emergency services, the teachers in our school, the transportation workers who get essential workers to work. Again, it is about the people. These people are risking their lives to help save other lives, now they are losing their jobs. It is essential that for our heroes, i call it the heroes act , we have the assistance to state and local government and to do so in a significant way, to recognize the lost revenue of ahave from a lack stream of revenue because of the economy, and secondly the outlays they make in order to address the coronavirus. We are already working on that bill. Excuse me. David take us through your strategy in agreeing to this approach, leaving out state and local. You got hospitals and testing and protection for some of the smallest companies. Did you run the risk of not getting the state and local anytime soon . Now we have Mitch Mcconnell saying he thinks he is done, even steven mnuchin, your partner in negotiating is saying he is not sure we need more. Are you concerned we will not be able to get the state and local anytime soon . Rep. Pelosi let me remind you, this is Mitch Mcconnell, who sat on the floor of the senate there is no way we will do anything but the 250, now we are up to 480 the democrats were able to for smaller businesses and for the help of the American People. That is an interesting statement. It is not the fact. This is an interim bill. We did not expect to have an interim bill except as the secretarys call. We went from cares one and then we would go on to cares two, and two would have been about state and local. We got everything we asked for on the floor of the senate and more two weeks ago. They shouldve agreed then instead of holding it up to what they agreed to yesterday. In terms of state and local, the president himself has said, he has tweeted out, this was last night, that he is ready to do state and local. He knows there has to be another bill, there are other measures needed to be addressed. It is going to be a major theage that will address needs of the states and localities. That is where much of the Health Care Delivery is in Public Hospitals and the rest, as well as in testing and that is in our bill that will be dispersed to and also thetates, lost revenue. This is a very important point. The lost revenue is something we will have addressed in this next care package to recognize that piece of it and that it has to , and fundsted for given to the states can be used for that because it is all coronavirus related. Everything we do is coronavirus related. It is with great optimism we go forward with this. We are well down the path to do it. It was never intended to be an interim bill because we do not know an interim bill would exist. We are using the bill to make the argument that this needed to be done as soon as possible, and it will. David as you say, it is all coronavirus related, which is terribly important. We have a massive problem and congress has done a lot to try to address it. Are you concerned, and is there anyway to protect against the possibility of politics entering it. There were some reports of the first ppp that there were disproportionate amounts going to some states that tend to vote republican rather than democrat. Can you do anything to make sure this is going to the place that needed the most . Unfortunately our audio is not working. All i heard you here all i heard you say is are you concerned at all. I do not know what the rest was. I am not a person who gets concerned. I see everything is an opportunity and i see this as an opportunity for us to be able to meet the needs of the American People in a way that takes us forward to up our economy very soon. The key to that is testing, testing, testing. The key to that is testing and Contact Tracing and isolation. We know how to get it done good the sooner we do that, science, science is the answer to opening up government and i wish everyone could share that view. There has been a reluctance on the part of this administration to respect science, knowledge, data, evidence and information in fact is how you make decisions. A reluctanceo been to accept the role of government in the solution. If you reject science and you reject government, then you can see why we are in the situation we are in. That is exactly what the president did from the start. It is a hope, reject science, it will magically disappear, reject science, reject governance, and that delay and that denial causes debts. Y concern causes deaths my concern is we are working together in a positive way to support the lives and livelihoods of the American People. David i apologize for the technical difficulties. I will try to speak up. Technical difficulties. Is thestion i was asking need to go for coronavirus, how do we make sure these massive funds are not distributed with any political reasons involved . The ppp, there was some suggestion more funds were going to the states that tend about republicans. Are you confident this is going where it needs to go as to where it might be politically to go. Rep. Pelosi of course not. Abraham lincoln said public sentiment is everything. With that you can accomplish almost everything, and without it nothing. Would haveat they distribute those funds in a way that was not in furtherance of ending this pandemic is totally irresponsible, but not surprising, because they have rejected science and governance, as i said. Have a bright light shining on this, whether it is the panel set up by the cares act in the congress of the or myself tomorrow will be introducing a select committee on oversight for the coronavirus, strictly about coronavirus and how everything functions in the best possible way. Nonpartisan, nonpolitical, sciencebased as we go forward. I might add to that that i do soon, itis not too should have been earlier. We have to get ready for what comes next. How do we open up government and do so in a way that does not contribute to a return of the virus. If we have a vaccine soon, how is that distributed . Not in a political way, but in a way that meets the needs of the American People. That would be simple. It is a challenge and proper preparation prevents poor performance. That is what the boy scout say, i wish the president was a boy scout in that regard and would tothinking ahead, not just look back to some of his statements, but he cannot continue to misrepresent the facts to the American People and expect us to accept the deaths that go with that. David final question. Looking forward the way you say we need to be doing seems right. What you look forward to in terms of an election. You have any sense of what that may look like to make sure people are safe but they get to express their views at the polls . Rep. Pelosi i thank you for that. I do not think anything we are doing now should have everything political. Every bill of past has been strongly bipartisan. Three in march and then this additional bill. As we go forward it will be bipartisan as well. One of the things we want in the new bill is more funding to protect the integrity of our elections. As you saw the Intelligence Committee in a bipartisan way released a report saying that without any question, an investigation into the russian interference into our election was substantiated, it was nonpartisan, it was based on fact. The Intelligence Committee tells us the russians are 24 7 trying to disrupt our election again. We want to protect the integrity of our Critical Infrastructure of elections. We also want to be able to have people vote by mail. Especially at a time of concern about health issues, it is better for them to vote by mail to get their balance their ballots sent to them at home and have sameday registration for those who want to go to the polls and have the demand on poll watchers and the rest be much less. We will be seeking additional funds, 400 million in the first cares act, we need much more than that so that we can guarantee the integrity of our elections. We are talking about the lives of the American People, the livelihood of our economy, and the integrity of our elections, the life of our democracy. This is very important. Now more than ever, more important to be able to vote by mail. Thank youame speaker, so very much for your time. That is nancy pelosi. Rep. Pelosi my pleasure, thank you so much. David coming up, we will talk about the present and the future for real estate with jeff blau. That is coming up on balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. All of business is affected by this pandemic, and certainly real estate is included. We welcome the ceo of related companies, jeff blau, one of the largest real estate companies, the largest landlord in new york city, and has over 3000 employees. Good to have you. Thank you for joining us. Earlier in april you are saying a breakdown between commercial retail and residential in terms of how people are paying their rent, with commercial and residential doing very well but not so much retail. Has that changed . Jeff thanks for having me, david. That holds true. It is midmonth now. As we approach may 1, all of the retail professionals and landlords are wondering what will happen with rent payments. I still believe residential and commercial office will stay strong. Retail is obviously the weaker point, and hotels are not collecting any revenue at the moment. Planning for that reopening and what it looks like. We are working with our Office Building professionals as to what is the Office Building, what is going back to work look like . What will your Office Look Like . How will we go back . How any people will be in the office. What are the protocols for testing or touching the elevator button or signing into a building . We are spending a lot of time thinking about that across all of the Asset Classes. What does it mean to stay in a hotel . Unfortunately i think people will go back to their office much sooner than they start traveling. You will see a delay on the hotel side as to when that comes back online. It is different for each of the Asset Classes and obviously the longer this goes on, the greater the impact on each one of those components. David give us a concrete example hudson yards, big exciting project you just open recently. You have retail, you have commercial, you have residential. What differences are you contemplating in the way you configure . The various businesses, there are prominent businesses. Law firms. How will it look different if i go to work at hudson yards . Jeff we are establishing protocols in the Office Building. As you enter the building we will be doing temperature checks, and whether we do those with thermal scanners or the more conventional ones where it is just on your forehead, that remains to be seen based on the quality of those thermal scanners that exists today. All of the employees and the buildings will be Wearing Masks and gloves and there will be procedures for how many people come into the lobby at the same time. One of the things we are working with our tenants are doing staggered shifts, so we expect to be able to have the flow through the lobby decreased substantially based on start times. Another thing we are hearing from our tenants is they will not bring everyone back at the same time. If you remember how we closed down, first it was 50 of your workers had to stay home, 25 , my guess is that will happen in reverse and you will see a slow buildup to occupancy again. Then the big one is testing. We do not know the availability and the efficacy of the testing and whether that becomes part of entering the buildings new protocol or not. David in the meantime, it must be affecting your revenue as well as your cost line. How does that work through . When people will not work cannot pay their rent, what kind of pressure does that put on you and what kind of pressure does it put on the financing structure for Real Estate Developers . Is one of the biggest concerns i see for the commercial real estate sector, orther it is retail or Hotel Residential to the extent landlords are not able to collect rent from tenants. Rent tolords use the pay their own building employees, property taxes, and ultimately debt service to the banks. Once that ecosystem of rent to expenses to interest to the banks gets broken at one point of the chain, ultimately that will become a problem at the banks and we have not yet seen the impact on commercial. Ortgages this will start to occur, specifically on retail and hotel assets. You will see a wave of defaults on commercial and hotel loans, and that has not worked its way through the system. In the short term, the banks have been attempting to solve the liquidity problem with forbearance agreements, whether it is 60 or 90 day waivers, but that quickly will become credit problems as those assets become less valuable and unable to service the debt after the forbearance. To comenk we are soon into that problem in the commercial lending markets. Markets in the see nbs it is more difficult because at least with the Banks Holding Balance Sheet loans, there someone on the other side of the table to talk to. Markets, many have moved their loans into special servicing and it is a much slower process to be able to even allow for forbearance agreements to get done. It is going to be difficult, that is just for existing loans. The question of when does the commercial lending market reopen for new lending is a whole other time and that will require and back to work and things to come back online before that starts to happen. Past 60 days,ut even six months, into the longerterm, are you contemplating the possibility of differences such as people may not need commercial real estate such as they are doing more things from home, or in new york city there are reports people may not be as enthusiastic about working and living in new york city. Do you think it could change longerterm your business . Jeff in the commercial office space i have a contrary view on that. I think what people realized, even with all of the zoom calls and google hangouts, it is not an effective workathome tool i think what people employees as good people are itching to get back to work. Good we have done surveys of our ownthe workathome has not been particularly effective and people want to go back to the office. See as a think we will longlasting change is on the travel side. If you have a meeting, do you need to do that trip to chicago to have that meeting in person or could you use zoom or webex or one of those tools. That will have longterm impacts on the airlines at the hotel sector. I do see some big trends. Interestingly, you mentioned about less office space. I can hear you, but i will interrupt. I apologize. I do not want to let you go without talking about related companies. It is a big corporate system. Give us a sense of what youre doing to help the meantime. Jeff in times like this, we think it is important for all companies that are able to help do that. When our construction teams were shut down, and the governor announced potentially we would need 140,000 beds, we jumped into action to rebuild a closed hotel a closed hospital on first avenue and were able to put online 400 beds in about 10 days in the event it was ultimately needed. I think that has backed off and maybe we will not need any more. The other thing we are doing that has been helpful is if we partnered with world central kitchen and jose andre to set up a food kitchen across from javits at hudson yards, where we are providing free food for Democratic Senators<\/a> objected. They made a counterproposal which was resound late rejected by the republicans. Refused tok, there negotiate until last thursday. Then they realized they had no chance to do the 250. There was so much more urgency. In the bill we have pushed the 250, that was what we helped put together. We support our Small Businesses<\/a>, their entrepreneurial spirit, their optimism, their source of jobs and wealth in our country. There is no question we would be supporting that. It took a longer time than it should have to agree we needed to make sure that even the smallest of Small Businesses<\/a> would be included in that and that would we would be addressing our health needs because the key to opening our economy, the key is testing, testing. The 25 billion and the 75 billion to our hospital for all of the purposes that serves. Finally, they agreed to a package we put on the floor at the time. We even did more. Now we can move onto the next stage. Does this take care of the rescue part as opposed to the recovery . In the past youve talked about rescue versus recovery and talked about assistance to state and local governments. Do you regard that as part of rescue or recovery and what are the prospects of adding that done . There are three phases, first emergency, that is what we did in the bills we passed in march. We started with testing, testing. Here we are a month and a half later and the administration has not fully implemented it. After this bill, hopefully they will. That was part of recovery. Then we went into mitigation. Mitigation for damage to the economy with the initiative to protect our Small Businesses<\/a>, to provide more assistance in terms of health care and the rest. Now we have to go further into mitigation to help state and local. State and local means this it means the health care worker. It means police and fire, the first responders, the emergency services, the teachers in our school, the transportation workers who get essential workers to work. Again, it is about the people. These people are risking their lives to help save other lives, now they are losing their jobs. It is essential that for our heroes, i call it the heroes act , we have the assistance to state and local government and to do so in a significant way, to recognize the lost revenue of ahave from a lack stream of revenue because of the economy, and secondly the outlays they make in order to address the coronavirus. We are already working on that bill. Excuse me. David take us through your strategy in agreeing to this approach, leaving out state and local. You got hospitals and testing and protection for some of the smallest companies. Did you run the risk of not getting the state and local anytime soon . Now we have Mitch Mcconnell<\/a> saying he thinks he is done, even steven mnuchin, your partner in negotiating is saying he is not sure we need more. Are you concerned we will not be able to get the state and local anytime soon . Rep. Pelosi let me remind you, this is Mitch Mcconnell<\/a>, who sat on the floor of the senate there is no way we will do anything but the 250, now we are up to 480 the democrats were able to for smaller businesses and for the help of the American People<\/a>. That is an interesting statement. It is not the fact. This is an interim bill. We did not expect to have an interim bill except as the secretarys call. We went from cares one and then we would go on to cares two, and two would have been about state and local. We got everything we asked for on the floor of the senate and more two weeks ago. They shouldve agreed then instead of holding it up to what they agreed to yesterday. In terms of state and local, the president himself has said, he has tweeted out, this was last night, that he is ready to do state and local. He knows there has to be another bill, there are other measures needed to be addressed. It is going to be a major theage that will address needs of the states and localities. That is where much of the Health Care Delivery<\/a> is in Public Hospitals<\/a> and the rest, as well as in testing and that is in our bill that will be dispersed to and also thetates, lost revenue. This is a very important point. The lost revenue is something we will have addressed in this next care package to recognize that piece of it and that it has to , and fundsted for given to the states can be used for that because it is all coronavirus related. Everything we do is coronavirus related. It is with great optimism we go forward with this. We are well down the path to do it. It was never intended to be an interim bill because we do not know an interim bill would exist. We are using the bill to make the argument that this needed to be done as soon as possible, and it will. David as you say, it is all coronavirus related, which is terribly important. We have a massive problem and congress has done a lot to try to address it. Are you concerned, and is there anyway to protect against the possibility of politics entering it. There were some reports of the first ppp that there were disproportionate amounts going to some states that tend to vote republican rather than democrat. Can you do anything to make sure this is going to the place that needed the most . Unfortunately our audio is not working. All i heard you here all i heard you say is are you concerned at all. I do not know what the rest was. I am not a person who gets concerned. I see everything is an opportunity and i see this as an opportunity for us to be able to meet the needs of the American People<\/a> in a way that takes us forward to up our economy very soon. The key to that is testing, testing, testing. The key to that is testing and Contact Tracing<\/a> and isolation. We know how to get it done good the sooner we do that, science, science is the answer to opening up government and i wish everyone could share that view. There has been a reluctance on the part of this administration to respect science, knowledge, data, evidence and information in fact is how you make decisions. A reluctanceo been to accept the role of government in the solution. If you reject science and you reject government, then you can see why we are in the situation we are in. That is exactly what the president did from the start. It is a hope, reject science, it will magically disappear, reject science, reject governance, and that delay and that denial causes debts. Y concern causes deaths my concern is we are working together in a positive way to support the lives and livelihoods of the American People<\/a>. David i apologize for the technical difficulties. I will try to speak up. Technical difficulties. Is thestion i was asking need to go for coronavirus, how do we make sure these massive funds are not distributed with any political reasons involved . The ppp, there was some suggestion more funds were going to the states that tend about republicans. Are you confident this is going where it needs to go as to where it might be politically to go. Rep. Pelosi of course not. Abraham lincoln said public sentiment is everything. With that you can accomplish almost everything, and without it nothing. Would haveat they distribute those funds in a way that was not in furtherance of ending this pandemic is totally irresponsible, but not surprising, because they have rejected science and governance, as i said. Have a bright light shining on this, whether it is the panel set up by the cares act in the congress of the or myself tomorrow will be introducing a select committee on oversight for the coronavirus, strictly about coronavirus and how everything functions in the best possible way. Nonpartisan, nonpolitical, sciencebased as we go forward. I might add to that that i do soon, itis not too should have been earlier. We have to get ready for what comes next. How do we open up government and do so in a way that does not contribute to a return of the virus. If we have a vaccine soon, how is that distributed . Not in a political way, but in a way that meets the needs of the American People<\/a>. That would be simple. It is a challenge and proper preparation prevents poor performance. That is what the boy scout say, i wish the president was a boy scout in that regard and would tothinking ahead, not just look back to some of his statements, but he cannot continue to misrepresent the facts to the American People<\/a> and expect us to accept the deaths that go with that. David final question. Looking forward the way you say we need to be doing seems right. What you look forward to in terms of an election. You have any sense of what that may look like to make sure people are safe but they get to express their views at the polls . Rep. Pelosi i thank you for that. I do not think anything we are doing now should have everything political. Every bill of past has been strongly bipartisan. Three in march and then this additional bill. As we go forward it will be bipartisan as well. One of the things we want in the new bill is more funding to protect the integrity of our elections. As you saw the Intelligence Committee<\/a> in a bipartisan way released a report saying that without any question, an investigation into the russian interference into our election was substantiated, it was nonpartisan, it was based on fact. The Intelligence Committee<\/a> tells us the russians are 24 7 trying to disrupt our election again. We want to protect the integrity of our Critical Infrastructure<\/a> of elections. We also want to be able to have people vote by mail. Especially at a time of concern about health issues, it is better for them to vote by mail to get their balance their ballots sent to them at home and have sameday registration for those who want to go to the polls and have the demand on poll watchers and the rest be much less. We will be seeking additional funds, 400 million in the first cares act, we need much more than that so that we can guarantee the integrity of our elections. We are talking about the lives of the American People<\/a>, the livelihood of our economy, and the integrity of our elections, the life of our democracy. This is very important. Now more than ever, more important to be able to vote by mail. Thank youame speaker, so very much for your time. That is nancy pelosi. Rep. Pelosi my pleasure, thank you so much. David coming up, we will talk about the present and the future for real estate with jeff blau. That is coming up on balance of power on Bloomberg Television<\/a> and radio. David this is balance of power on Bloomberg Television<\/a> and radio. All of business is affected by this pandemic, and certainly real estate is included. We welcome the ceo of related companies, jeff blau, one of the largest real estate companies, the largest landlord in new york city, and has over 3000 employees. Good to have you. Thank you for joining us. Earlier in april you are saying a breakdown between commercial retail and residential in terms of how people are paying their rent, with commercial and residential doing very well but not so much retail. Has that changed . Jeff thanks for having me, david. That holds true. It is midmonth now. As we approach may 1, all of the retail professionals and landlords are wondering what will happen with rent payments. I still believe residential and commercial office will stay strong. Retail is obviously the weaker point, and hotels are not collecting any revenue at the moment. Planning for that reopening and what it looks like. We are working with our Office Building<\/a> professionals as to what is the Office Building<\/a>, what is going back to work look like . What will your Office Look Like<\/a> . How will we go back . How any people will be in the office. What are the protocols for testing or touching the elevator button or signing into a building . We are spending a lot of time thinking about that across all of the Asset Classes<\/a>. What does it mean to stay in a hotel . Unfortunately i think people will go back to their office much sooner than they start traveling. You will see a delay on the hotel side as to when that comes back online. It is different for each of the Asset Classes<\/a> and obviously the longer this goes on, the greater the impact on each one of those components. David give us a concrete example hudson yards, big exciting project you just open recently. You have retail, you have commercial, you have residential. What differences are you contemplating in the way you configure . The various businesses, there are prominent businesses. Law firms. How will it look different if i go to work at hudson yards . Jeff we are establishing protocols in the Office Building<\/a>. As you enter the building we will be doing temperature checks, and whether we do those with thermal scanners or the more conventional ones where it is just on your forehead, that remains to be seen based on the quality of those thermal scanners that exists today. All of the employees and the buildings will be Wearing Masks<\/a> and gloves and there will be procedures for how many people come into the lobby at the same time. One of the things we are working with our tenants are doing staggered shifts, so we expect to be able to have the flow through the lobby decreased substantially based on start times. Another thing we are hearing from our tenants is they will not bring everyone back at the same time. If you remember how we closed down, first it was 50 of your workers had to stay home, 25 , my guess is that will happen in reverse and you will see a slow buildup to occupancy again. Then the big one is testing. We do not know the availability and the efficacy of the testing and whether that becomes part of entering the buildings new protocol or not. David in the meantime, it must be affecting your revenue as well as your cost line. How does that work through . When people will not work cannot pay their rent, what kind of pressure does that put on you and what kind of pressure does it put on the financing structure for Real Estate Developers<\/a> . Is one of the biggest concerns i see for the commercial real estate sector, orther it is retail or Hotel Residential<\/a> to the extent landlords are not able to collect rent from tenants. Rent tolords use the pay their own building employees, property taxes, and ultimately debt service to the banks. Once that ecosystem of rent to expenses to interest to the banks gets broken at one point of the chain, ultimately that will become a problem at the banks and we have not yet seen the impact on commercial. Ortgages this will start to occur, specifically on retail and hotel assets. You will see a wave of defaults on commercial and hotel loans, and that has not worked its way through the system. In the short term, the banks have been attempting to solve the liquidity problem with forbearance agreements, whether it is 60 or 90 day waivers, but that quickly will become credit problems as those assets become less valuable and unable to service the debt after the forbearance. To comenk we are soon into that problem in the commercial lending markets. Markets in the see nbs it is more difficult because at least with the Banks Holding<\/a> Balance Sheet<\/a> loans, there someone on the other side of the table to talk to. Markets, many have moved their loans into special servicing and it is a much slower process to be able to even allow for forbearance agreements to get done. It is going to be difficult, that is just for existing loans. The question of when does the commercial lending market reopen for new lending is a whole other time and that will require and back to work and things to come back online before that starts to happen. Past 60 days,ut even six months, into the longerterm, are you contemplating the possibility of differences such as people may not need commercial real estate such as they are doing more things from home, or in new york city there are reports people may not be as enthusiastic about working and living in new york city. Do you think it could change longerterm your business . Jeff in the commercial office space i have a contrary view on that. I think what people realized, even with all of the zoom calls and google hangouts, it is not an effective workathome tool i think what people employees as good people are itching to get back to work. Good we have done surveys of our ownthe workathome has not been particularly effective and people want to go back to the office. See as a think we will longlasting change is on the travel side. If you have a meeting, do you need to do that trip to chicago to have that meeting in person or could you use zoom or webex or one of those tools. That will have longterm impacts on the airlines at the hotel sector. I do see some big trends. Interestingly, you mentioned about less office space. I can hear you, but i will interrupt. I apologize. I do not want to let you go without talking about related companies. It is a big corporate system. Give us a sense of what youre doing to help the meantime. Jeff in times like this, we think it is important for all companies that are able to help do that. When our construction teams were shut down, and the governor announced potentially we would need 140,000 beds, we jumped into action to rebuild a closed hotel a closed hospital on first avenue and were able to put online 400 beds in about 10 days in the event it was ultimately needed. I think that has backed off and maybe we will not need any more. The other thing we are doing that has been helpful is if we partnered with world central kitchen and jose andre to set up a food kitchen across from javits at hudson yards, where we are providing free food for Javits Center<\/a> Health Workers<\/a> and medical workers. It has been a Great Initiative<\/a> and ive been voluntarily there quite a bit. David thank you so much. That is jeff blau, ceo of related companies, and this is bloomberg. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] david welcome back to balance of power pickup i am david westin. For first world is the go to Mark Crumpton<\/a>. thank you very much. Mark thank you very much. Has told the military to destroy iranian gunboats. Federal Health Officials<\/a> are confirming the coronavirus killed two people in california in february suggesting the illness was circulating in the United States<\/a> weeks earlier than was originally thought. Officials say to people who died in Santa Clara County<\/a> in february. At the time, there were only 11 known cases. President trump says the u. S. Will open National Parks<\/a> amid the outbreak speaking at an earth day event today. He said, you have a lot of land to open up. He did not say when the parks would start to reopen. Diede u. K. , 759 people from the coronavirus in the past 24 hours. That is down from the day before. They are prepared to start human trials for a vaccine. Government Officials Say<\/a> they are increasingly confident the country is passed the peak. They continue to warn of the possibility of a second peak. 134,000. Is more than confirmed cases and 18,000 have died. Global news 24 hours a day. Powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton<\/a> and this is bloomberg. David michigan is one state that has been hit the hardest. We are joined by Lieutenant Governor<\/a>, garlin gilchrist. Thank you so much for joining us. Give us a sense of where the virus is in michigan. How bad is it . Are you still on the rise of cases and deaths . Time. Nk you for the people have worked to stay home and stay safe. We have not been able to see the curve plateau and even the hardest hit parts like detroit we believe we are trending in the right direction but are going to be mindful and make policy decisions that maximize the reduction of the virus. David i am glad you raised the issue of detroit and surrounding counties. His michigan, in terms of coronavirus, a tale of two states . Is it different than in the rest of the state compared to detroit . It is difficult to say definitively because we are still working very hard to ramp up Testing Capacity<\/a> across the detroit has seen the highest number of confirmed cases and deaths. Lost 16ly, i have people in my life to covid19. We all know we need to Work Together<\/a>. This is everybody versus covid19 in the state of michigan. Distancing, weal issued orders to make people are doing that. David sorry for the loss of people in your life. That is a big issue. Give us a sense to the extent you may be believe detroit has 75 of the population is africanamericans. There is evidence africanamericans are being hit harder by this disease. The state of michigan remains one of the few states in the country to report test results and deaths along racial lines. We know there have been Health Disparities<\/a> in our communities for generations. Trend weoticed this decided to step up and take action. Michigan became a leader on racial disparities. We want to address several things. The fact there are environmental factors that contribute to increased rate of infection whether that is low air quality but also the fact that so many on the front lines are nurses and nursing assistants, bus drivers, people at the grocery stores, utility companies. They are more likely to be low income people of color and they are more exposed to the virus because the nature of their jobs. We are working to put interventions on the ground right now to help decrease the risk of infection, increase isolation, so we can stop the spread. We believe that will help decrease the mortality rate among black people. They make up 14 as a whole but 40 of the deaths. It is important we act now. David Lieutenant Governor<\/a> gilchrist, this is obviously about the health and safety of citizens. Theres also economics involved. Detroit is just coming out of bankruptcy. What kind of financial pressure is this putting on detroit . Tremendoustting financial pressure on all cities and states. The Human Services<\/a> cost are going to be a big hit on budgets across the nation. That is why we continue to advocate for more resources. We have to balance the budget and we need to make sure money is not being put in front of peoples survival. We are working hard the state level to support individuals, families, Small Businesses<\/a> but we are going to need more help from the fed. I know this, detroit is a resilient city. I came back here in 2014 and i have seen the amazing beauty and the reality of how much hardworking creativity is in the city. We can get through this by working together. Us who havehose of known detroit, it has come a long way. At the same time, the report on bloomberg today says you are going to be short 350 million you have to come up within 16 months. The state may take over the city. What are the prospects of that . Again, the financial hit coming from the pandemic is something that is unprecedented. We are working to plan for all the scenarios but what is important to know is relief will need to come from the federal government to make sure the state and local governments have what they need. We have a big hole in our state budget. We do not have the answer on any of these questions because we do not know how large the whole is going to be but we are working hard to prepare for a worstcase scenario. Ce to start is go to the Trump Administration<\/a> to make sure we get the resources we need. Starting tore sorry t see some states opening up. Governor cuomo said elective surgeries could be possible in the upstate part away from new york city. Is that possible . Are you starting to look at that for michigan considering there may be a different situation in the southeast date . State . Public health and safety is going to drive because economy cannot come back unless they feel safe when they leave their homes. We really need three things. One, massively ramped up testing in every part of the state. We cannot understand Community Spread<\/a> until we can test enough people including those without symptoms. We need more from the federal government as well as trying to procure it from private sectors across the country and the world. Second, we need the ability to make sure we Contact Tracing<\/a>. We can find out who they potentially exposed so those people can get tested. Third, enabling people to isolate so we can safely contain the virus. We need to make sure those three things are in place across the state before any region can think about coming back. We are working on plans to establish that michigan. We are going to be releasing more details in the coming days those of the principles we are going to follow so we can open up responsibly and not cause a second wave. David we just talked nancy pelosi and she is confident this forged 84 billion package will 484which includes billion package will pass. Will that help with the need for testing . I mean, every resource is going to contribute to getting more. Testing. I appreciate that. It will also go toward the Paycheck Protection Program<\/a> which i helped launch. That ran out of money but that is nowhere near covering all the Small Businesses<\/a>. Worke going to continue to with our delegation to advocate for more. We appreciate any dollars coming into the state of michigan. David thank you so very much for your time. That was garlin gilchrist, Lieutenant Governor<\/a> of the state of michigan. Coming up, talk to the senator of minnesota on the spending needed for thes state of minnesota. This is balance of power. The house isnt about to enact forged 84 billion in spending to cushion us from the coronavirus but many think more is needed. We welcome senator tina smith from the state of minnesota. It is good to have you here. What will this do for minnesotans . Sen. Smith thank you, david. I am happy to talk about what we passed yesterday in the senate. Provide a couple of things that are very important to minnesota and the rest of the country. The first is it replenishes the Small Business<\/a> fund that is giving help to Small Businesses<\/a>. I want to note, we made important additions because we wanted to make sure these Small Business<\/a> forgivable loans are getting down to the small and asses, the hair salon family daycare provider who is really struggling to keep it together. Those Small Businesses<\/a> did not get a lot of the money in the first of this Protection Program<\/a> and we want to fix that. To me, that is important to the proposal we passed. We are going to need to do more but this will be really important to minnesota businesses. Assistance toout local government . That did not make it into the package. Is it needed in minnesota . Sen. Smith it is going to be extremely, urgently needed. Bill included help to hospitals and that will be important but we wanted to get done help to state and local governments that are really bearing the brunt of this. Think about what that means. These are state and local governments that cannot deficit spend, they cannot spend money they do not have in the bank account and i know this because i helped run the city of minneapolis. They are providing essential Public Services<\/a> police and fire and the counties are doing everything they can to find shelter for those who are homeless. These are surfaces we cannot go without. That is why the federal government needs to step in. Encouragingy, it is that though we did not get this done in the package yesterday, there were signals from the president that they intend to move with the democrats and that. S makes me feel better david we just talked with Lieutenant Governor<\/a> of michigan and they have been hard hit. Fourth hardest hit in the union. Minnesota not nearly as much as michigan yet. What do you think accounts for that . Sen. Smith we are experiencing a lot of worry and we still are seeing our case rates going up. I really think it points to what we are doing well in minnesota. Our governor has been very aggressive about early putting shelterinplace orders. I think minnesotans are following those well and that is helping us be responsive. We are seeing that although we have cases in the hospital, we are managing those people so they are not there as long. Wele every Single Person<\/a> have lost in minnesota and around the country is a tragedy, we are grateful you are not seeing the increase as quickly as we are in other parts of the country. Even as i say that we are looking at an outbreak in minnesota. Nobles county is on the iowa border right by worthington, minnesota we have a large meat packing plant. We have over 100 cases in nobles county. This is an example of how nobody is immune from this. We have to be doubly careful even in pretty Rural Counties<\/a> like nobles. David it is clear we cannot let our guard down even for a second. There is some consideration about starting to open the economy. Georgia is going to move on friday even in new york Governor Cuomo<\/a> said elective surgeries upstate. Is it too soon for minnesota to think about whether he might be able to open backup part of the economy . Sen. Smith i think a lot about what dr. Fauci said which i think is for sure right. This is not going to be a light switch that flips on suddenly and everybody goes back to normal. It is hard to imagine what a new normal is going to look like. In minnesota, our governor in the last week has loosened some restrictions around Outdoor Activities<\/a> like golf and fishing and putting docs in the water. That makes sense because it does not require a lot of people being close together. I really worry about this idea that we can just go back to normal. That untilhink about we get on top of what we need to do with testing. I was listening to the litan and governor talking Lieutenant Governor<\/a> talk about adequate testing and the antibody tests we need so we can see who has been infected. What can we learn about if they have developed immunity . What can we do around contracting sorry, Contact Tracing<\/a> . This is where the Trump Administration<\/a> has fallen down on the job and we addressed some of that in the bill we passed yesterday. David a lot of work left to be done. I hope some of that will go toward testing. Thank you so much. That was senator tina smith from minnesota. Coming up, we have more my interview with speaker of the house, nancy pelosi. This as balance of power. Welcome back to balance of power. I am david westin. Earlier i spoke to speaker of the house nancy pelosi and one thing i ask is issue sure they would be able to pass the bill that is coming out of the senate . Soth. Pelosi we will do so in a bipartisan way. Nothing extraordinary about how we will vote. Andill take a recorded vote the senate had unanimous consent. Few senatorsded a to be there. Quorum need to have a and majority to get past but we will. David an awful lot in this bill. Billion toike 370 replenish the ppe program. Andbillion for hospitals 25 billion for testing. What is not in the bill you think still needs to be done . Soth. Pelosi let me just say how pleased i am with what is in the bill and. Two weeks ago the secretary of the treasury called me and said he needed a quarter of a trillion dollars and 48 hours. That would mean, by tomorrow, the republican leader went to 0he floor and said it is 25o million and we objected. We Work Together<\/a> for the counterproposal which was rejected by the republicans. Refused tok, they negotiate until last thursday. They realized they had no chance. There was more urgency and we support the 250 million which together. Put jobs,port their optimism, creation of wealth. There is no question we would be supporting that but it took them a longer time than it should have to agree we needed to make sure even the smallest of Small Businesses<\/a> would be included in that and that we would be addressing health needs. The key to opening our economy is testing, testing, testing. We also have 75 billion to hospitals for all the purposes that service. Finally, they agreed to the package we put on the floor. We even did more. We can move onto the next phase. David does this take care of the rescue part as opposed to recovery . In the past, you talked about rescue versus recovery and talked about state assistance. Do you regard that as part of a rescue or recovery and what are the prospects of getting that done . Soth. Pelosi the first is emergency which is what we did in the bill we passed in march. We started with testing, testing, testing and here we are a month and a half later in the administration has not fully implemented that. After this bill, hopefully they will. That was part of recovery. Then we went into mitigation. Damage to thee economy and protect Small Businesses<\/a>, providing more assistance in terms of health care. Now we have to go further into mitigation. This d local means the health care worker, the police and fire, first responders, emergency services, the teachers in our schools, the transportation workers. Again, it is about the people. These people are risking their lives to help save other lives in their losing their jobs. I call it our heroes act and this is the assistance for state , county, and local government. To recognize the lost revenue they have from lack of a stream of revenue due to the economy and secondly, addressing the coronavirus. David thou speaker of the house nancy pelosi speaking earlier on balance of power. Coming up, the second half of balance of power where we speak with the republican from arkansas. He will oversee the nearly 3 trillion spent by the u. S. Government to shore up the economy. That is coming up on balance of power. I am david westin and this is bloomberg. Vonnie it is 1 p. M. In new york. I am vonnie quinn and welcome to Bloomberg Markets<\/a> pick out. Digesting the latest round of corporate earnings and a recovery might come sooner than expected. Lawmakers prepare another round of stimulus to counter the impact of the pandemic. Passage to a 484 million package. Investors pulling 33 million in hedge funds. They gained ground in q1. Turn to the market to get a quick check. 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