Are already financially strapped. These are republican and democrat winners. Republican and democratic governors. Not eager to take over funding the federal government is supposed to be providing. Trump has not had a lot of takers on these offers and right now these checks are not going anywhere until some governors stepped forward. David it does feel like a game of chess. You heard secretary mnuchin say weve already given the money you need to spend, there a much of money youve not spent from the cares act. Craig i do not think the states see it that way. It is funny how the treasury secretary does the at that way. Theres also a game of tit for tat where trump looks at all the states, previously the hardest hit states for the democratic states. Your illinois, new york, california. Now you will have the republican states, florida, arizona. Trump team has been critical of the states handling of the finances, and some of the states budget Balance Sheets are awash in redp you would illinois is known for its pension problems awash in red. Illinois known for its pension problems. Trump does not want to bail out states. If i were donald trump i would be thinking more about the people and less about the politicians. People have been relying on 600 Unemployment Insurance, they are getting zero dollars. Im not sure i would want to be the president of the United States when a lot of people getting those checks see that evaporate. They are looking to the white house for leadership. Trump is trying to punt. I think trump will take the blame. Orid whether it is 300 400, at least it is some money. Do have a sense of how fast he could get to the people . Couldnts there fast, President Trump say congress could not get it done, i saved you . Craig this is the game of chess. Almost a game of chicken. The two cars are speeding towards each other. Right now the democrats are holding their ground, saying what trump did is constitutionally illegally. It is congress who allocates the money. Family trying to put food on the table is not thinking about constitutional law. I think democrats feel like they have the upper hand, and what you can read into that as there were no negotiations at this point. People who have been following ,his, mnuchin and mark meadows wearing a path up to capitol hill, there are no talks scheduled. Everyone has retreated to their corners waiting for the other person to make the first move. No one is making that move. It is adavid complicated game of chicken, better than chess. Thanks to craig gordon. One part of one of those executive orders suspended payroll tax payments until the end of the year, something mr. Trump had wanted to get into the stimulus bill. We welcome mattie doppler, founder and president of Forward Strategies and a senior fellow for policy at the National Taxpayers union. Always great to have you on when it comes to taxes. Explained was how this works, this payroll tax. It is not clear what employers will do. It. Ie you nailed it is not clear what employers will do, and therein lies the problem. The administration only has the problem to work with deadlines when it comes to taxes. They do not have the authority to appeal taxes or prevent people from paying taxes. That is what happened with the deadline for income taxes. The treasurer used its authority to push that deadline back. When it comes to the payroll tax, the question is who is the taxpayer and what is it liable for. If youve ever gotten a paycheck, despite the fact it has come out of your paycheck before you see it, your employer is responsible for making that change in your taxable income. The question for employers is what the date do with the payroll money what do they do with the payroll money the president wants to go directly to workers . Employers are looking at being liable for them at the end of the year. That creates a problem for businesses, particular right now as they struggle for uncertainty in uncertain economic times. David as you say, there are statutes that require fica taxes to be taken out. Does the president have the authority to delay collection . Mattie the delay is not the question, the question is on the impact of people the president wants to impact. This will go to voters making less than 100,000 a year, but the employers are the ones responsible for making that change. If employers will stop withholding the Social Security taxes for workers, that means those employers need to make up that cash somewhere if the Administration Says we deferred those taxes but now the deadline is back on schedule, businesses and the employers in that scenario will be liable for the taxes. If you are a business facing an uncertain couple of weeks and years, what you will do is sit on that cash. Send it youring to workers, you will hold onto it until you know you will not be liable for the Tax Liability at the end of the year. David in a prior life you work on capitol hill. President trump has made no secret of the fact he wants to cut payroll taxes. Does this put more pressure on congress down the road to cut the taxes . Mattie there are a couple of idioms when it comes to tax legislating. What is that inertia does work. When youre looking at the next couple of months, if the deferral is to go into effect, say there is a change in power, change in administration after the election, then there is the onus on the next administration to say what they are going to do with the Tax Liability. No politician wants to be the politician raising taxes in a recession, particularly when they are taxes on workers. The challenge with the payroll tax workers one taken out of their paychecks do not necessarily wanted taken back in. That is in 2008 president bush shopping for stimulus checks, President Trump doing the same in the spring. People tend to see that as free money in their pockets rather than getting a bump up when their payroll taxes are diminished. That will be a question of politics into next year. The inertia will be on the side of taxpayers when it comes to reconciling that deferral. There is no guarantee employers will not be on the hook for payroll taxes when the executive order expires. David that is employers, that his employees, that is President Trump. We should talk about why you had the taxes withheld in the first place. They go for Social Security and medicare. That is third rail. How do you cut the taxes without cutting back on the benefits . Mattie that is right. The benefits are the owners of the Treasury Department. The Treasury Department as the trustee of the Social Security trust fund. The treasury has said benefits Social Security actuaries have told us that because of the downturn even with the downturn in employment, it only creates a little bit of dent in the trust fund solvency, moves the solvency data of six months or so, but we are still looking at years and years and solvency. Benefits are in peril. When it comes to the political argument about the executive order, certainly the president has opened himself up to criticism when youre looking at Social Security taxes. In 2011, when the Social Security tax was cut, an act of congress was used to do that. The general fund was used for a play some of the revenues involved with the tax cut. Expert, do you think people who make 100,000 or less, do you think they will see more money or not . With all of the questions on taxes, it certainly depends. If employers can figure out a way to withhold taxes from employee paychecks, those employees would see more money on their paychecks. The bigger question into elections is whether or not they notice. As we saw with the education of the 2016 tax law, people whose top 20 extra dollars a month in their paycheck did not seem to notice, even though over the course of the year it adds up to thousands of dollars. When it comes to how sensitive taxpayers are to their paychecks and their manipulation because of taxes, that is an outstanding question. When it comes to executive order , the application, particularly because employers are in charge, will be tricky. David always great to have you with us. That is mattie duppler, founder and president of forward strategist and senior fellow at the National Taxpayers union. Coming up, we go through the politics of the executive orders with bloomberg political contributor jeanne zaino. This is balance of power on Bloomberg Television and radio. This is balance of power on bloomberg televion and radio. I am david westin. We turn to Mark Crumpton for first word news. Mark covid19 does not seem to follow the seasonal pattern other viruses do. That is according to the world health organization. Unlike other viruses like the flu that spread mainly in the winter, the coronavirus pandemic is picking up steam in the summer. Demonstrated has no seasonal pattern so far. It has clearly demonstrated that if you take the pressure off the virus, the virus bounces back. That is the reality. You can call that a second wave, second spike, flareup, you can call it anything you like. Take the pressure of the virus, the virus will bounce back. Mark the who is urging countries even where covid19 appears to be under control, such as those in europe, to maintain measures to slow the spread of the virus. In lebanon, the government has resigned over the massive explosion in beirut that killed more than 150 people and injured thousands. It also led to violent protests. The explosion was caused by several thousand tons of material left at the countrys main port despite repeated safety warnings. Violence on the streets of chicago. Hundreds of people smashed windows and battled with police in the magnificent mile shopping district. There was an exchange of gunfire. It is not clear what caused the virus. Antipolice graffiti was seen in the area. More than 100 people were arrested in 13 officers were said to have been injured. In portland, oregon, violent protests continued for another night. Demonstrators used a mortar to large commercial grade fireworks at police, injuring two officers. Protesters managed to get inside the Police Union Building and set afire. The protests in portland have been nightly for 70 days since george floyd was killed in minneapolis. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. David . Reshufflesident trump the political deck in washington on saturday with those executive orders which went around congress. To take us through the politics of the maneuvering, we welcome jeanne zaino, professor of Political Science at ionia college. Last time we talked was friday night. The president said he would do the executive orders. He did it. What does it due to the calculus on capitol hill . Jeanne it was a bizarre weekend because we were told the president would not be making any public statements, and then he came out friday and saturday signing the four executive orders. He hit on four key areas. Because wes happened have seen representatives from the white house unable to come to an agreement or get close. The president said he was going to take these actions. The actions he took raised substantial legal questions, constitutional questions. Then there is the substantive aspect. Will it help the people that need to be helped . There is all kinds of messiness regarding his actions. As you were just talking about, no plans for congress and the white house to meet to strike the kind of deal the American Public needs. You mentioned constitutional challenges. We will get into that. As a practical matter it will take courage from any democrat to sue to keep the money away from the people. Who will bring the lawsuit . Jeanne where he heard nancy pelosi, unable and unwilling to answer the question of whether they would take legal action. The president and his team almost dared them to take legal action. The reality is we are probably going to see legal challenges from somewhere because it does raise questions, and of course the fact is what the president has proposed to do, even if there are no legal challenges, which is unlikely, it is hard to imagine it works at all for it works in the way he would like it to. We have already heard governors like Governor Cuomo say the states do not have the funding needed to help supplement. The president is saying the fed will cover 75 , states cover 100 or 25 . It is unclear if the governors, even republican governors, will agree to do that. You cannot get into the system unless your governor agrees to that. Then you have to set up a program to get the money to the people. At the very best case scenario, this would be a Long Time Coming for the people on the ground to be able to get this kind of aid. David in the end, does this make a deal on capitol hill more likely or less likely . Who feels more pressure given with the president has done with executive orders . Jeanne it makes a deal less likely at this point. That is the frustration. I wish the president would have spent more of his time he does not own all of this. Democrats cannot come to a deal either. More time trying to big his own Republican Party together. That is where we are at an impasse. If you have many republicans saying they do not want to do this kind of spending, and obviously democrats have been unwilling to come down enough. If the president could get his own caucus to appoint representatives, you could get Mitch Mcconnell to the table, you may have a better chance. None of that seems to be in the offing, at least in the near term. I cannot imagine congress or the president wants to go to the election not having a deal this because people are suffering. David exactly. This is most important for the men and women out of work who do not have money to pay their bills. There are political consequences for the november 3 election. We now have some polls from cbs within the last 24 hours indicating that particularly in wisconsin and pennsylvania, President Trump lagging behind joe biden, consistent with other poles we have seen. Jeanne absolutely. Joe biden is up six points in these two states the president one in 2016 and he must win pennsylvania and wisconsin. Of course, in your home state of michigan, he is down by 11 and it looks like the republicans theall but going to cede state to the democrats. The math in terms of the battlegrounds for the president is shrinking. When we look behind the numbers, a lot of them have to do with covid. The president still gets fairly good marks from voters on the economy as it was before the pandemic, but they are not confident of the independent voters he needs and those states that he is in the best position to manage this in terms of the pandemic. You are seeing people feel more comfortable with joe biden. That is where the president seems to be losing his support in those states. There are wrinkles. You look at a state like pennsylvania and New Hampshire, where we do not have things like College Students returning in as large numbers as we might have to register to vote. The president s team feels like they may be out of pull out of state like New Hampshire for those types of reasons. They are still battling, this is still too early to call. They have to be very frustrated by joe bidens lead in the state and the fact the president does not seem to be able to show those independent swing voters he can manage the pandemic. David to tie it all up, that same poll suggests people are more concerned about how coronavirus is being handled than about the economy. Issues, does pocketbook now people are saying we are mainly concerned about the pandemic. Jeanne it is directly tied into the economy, to education, that is what we are seeing. When you and i talked three or four months ago, six months ago now, the economy usually is number one. As that drops back, that is a problem for the president and his team. They are hoping this vp selection by joe biden turns the page and they can talk about joe biden and not the president s handling of the pandemic. David i want you to stick around for the second hour balance of power on the radio because we will talk about exactly that, bidens vp selection. That is jeanne zaino. This is balance of power on bloomberg televion and radio. This is balance of power on bloomberg televion and radio. I am david westin. Time to check it on the markets. The nasdaq is deciding it is a good day to take some money off the table with the meantime, washington cannot get its act together on stimulus. Here to take us through it is scarlet fu. Scarlet we are seeing a bit of an unwind of recent Market Trends now that the bulk of earnings season is over and we have a political stalemate. What we are seeing today is small caps, which is a proxy for value outperforming, and also industrials represented by the Dow Jones Industrial average doing better than the s p and nasdaq. A dent iny makes a what we have seen so far this year. The nasdaq regularly closing at record highs, leaving Everything Else behind in its wake. We are 90 of the way through secondquarter results and on average s p 500 Companies Posted 11 declines in sales growth, 9 declines in earnings growth. Only two sectors reporting topline and bottomline growth. Tells you the state of the world. David exactly. What about the state of washington . We did have executive orders from President Trump. Are the markets reacting to that . Scarlet people expect washington to come up with something at the 11th hour. They are conditioned to think that will come together at the end. Goldman sachs estimates the president s executive orders by sometime and pushes out the early deadline until september. A lot of analysts make the point a market tantrum is needed before Congress Gets the market together. Matt miller quantifies it as a 7 to 10 back 10 pullback inequities before washington pays attention. Our usual savior the fed is getting back in sync congress in washington, get your act together. Charlie evans was the latest beneficial to do just that. You also have neel kashkari, the minneapolis fed president , who takes it one step further. With the start of flu season, he coauthored an opinion piece that suggests the u. S. Consider another hard lock down on a statebystate phases for four to six weeks. It is an idea. In terms of positioning, domestic flows have fallen for the seventh straight week showing investors are reluctant to continue chasing the gains and putting new money to work. Also gold continues to push higher, especially with negative real rates. That is another trend we will keep an ion. David a lot of trends. Thank you so much to scarlet fu. Up next, we will talk about the state of the u. S. Economy following fridays jobs numbers and president s four executive orders. We will talk about that with shawn golhar, barclays head of Public Policy research. This is balance of power on bloomberg televion and radio. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. David this is balance of power on Bloomberg Television and radio. Im david westin. It is time for first word news with Mark Crumpton. The weather is being rolled out a factor for fridays deadly crash of an indian passenger plane. Runway skidded off the and careened down a slope, breaking into three pieces. Bloomberg has learned Visibility Conditions were within safe ranges and pilots were briefed before the crash. The crash killed at least 18 people and hurt more than 100 others. Shut down a newspaper today after it published an interview with a doctor who accused the country of lying about how bad the coronavirus outbreak is. The paper quoted an epidemiologist who said the true number of cases and deaths in iran could be 20 times higher than the official number reported. He also said the virus was detected in one month earlier than it was announced. Nearly one week after tropical saias he say yes i ripped through the new york area, hundreds of thousands are still without power. New york and connecticut have both launched investigations into utility efforts to restore power. Said itated edison expects to restore service to most customers by tonight. Senate Homeland Security chairman ron johnson says he subpoenaed the fbi for documents related to the trump russian investigation. The Wisconsin Republican senator is also defending a separate investigation he is leading into joe biden and ukraine. U. S. Intelligence indicates russia is working to denigrate biden ahead of the november election. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. David thanks very much. Friday we got a read on the u. S. Economy with the job numbers, but things are changing so fast these days, some wonder whether those numbers were out of date even before we got them. To give us a real read on the economy right now, we welcome shawn golhar, barclays capital. Ubli where you feel the economy is heading right now . Absolutely, we saw some positive gains in the economy, 1. 8 million jobs. Down toment ticking about 8. 5 by the end of the year, but there are some mixed signals. By overth will go down 5 , rebounding in 2021. If they fail to get any congressional legislation done on a stimulus package, you could see this two or three Percentage Points off of baseline in the gdp. Republicans and democrats have a very different view about how things are going, and that translates over to whether or not the virus is behind us. 60 of republicans think the worst is behind us, while only 23 of democrats do. That translates over two, do we need more aid . Before we go into the politics, give us some are read on the data other than the monthly jobs numbers. You referred to the difference in the pmi and the market indications. Also the higher frequency things like the jobless numbers are giving people pause because they are coming down. Shawn absolutely. This terrifice highfrequency data they are looking at because things are changing so quickly, and we see some mixed signals on this. By any stretch of the imagination are we of the idea that this is a robust recovery. A lot of these assumptions we are making into this, we are thatputting into there Congress Comes up with a stimulus package. The baseline has been something around 1 trillion with a lot of aid for state and local governments, continuing unemployment. Obviously, those negotiations have had a stumble. David President Trump did his best to overcome, go around those obstacles but those executive orders. Are they a substitute for a real stimulus bill . It does address some unemployment, supplemental payments, also the payroll tax will supposedly get money into peoples pockets. Shawn it buys time for both sides to come together. The policy differences right now are on Unemployment Insurance, aid to state and local. This is real money, willow over 8 trillion in differences of how much is needed. The president s executive orders dubai time. I dont think the impact will be the same as legislation, but it gives both sides the ability to take a break, hopefully come back to the negotiating table. As of right now, it doesnt look like they have any date to continue the negotiations, but keep in mind, there is a major deadline at the end of september when we need another government spent bill spending bill in the form of another continuing resolution. That is where we could see this stimulus package come forward again. David to the extent that the president has bought some time, it depends on whether the money will get out to people. Some question whether employers will pass along to employees, deferral of taxes, that they will have to pay down the road, and whether states will go along with this. They will need to put in 100 for every 300 the federal government does. Shawn a lot of governors are expressing concern about this, how they are going to fund this, with all of the other problems. Payroll tax deferral, that is really just a shortterm note interest loan for qualifying individuals. Things are they legal . You could see challenges in the court. Not that one party or a politician wants to take money away, but there are constitutional issues at play. And moratorium on evictions. These are only for those that have certain mortgages. David from an economics point of view, is there so much uncertainty, whether it is legal challenges, states go along, employers, does that have a dampening effect on the stimulative effect . Shawn absolutely. This will not have the same effect as passing legislation. Memberss does is buys of congress time. If we see new data coming in that is dire, more governors speaking up about the Unemployment Insurance situation, it may cause congress to come back and come to an agreement in august. Right now, we have to see the data. Right now, it seems to have bought us some time politically. On the economic impact, it is not the same as passing legislation. David you mentioned you were hypothesizing 1 trillion for the stimulus bill. That is where the republicans are. Cameemocrats are saying we down from 3. 5 to 2. 5. Is 1 trillion enough as it were . Shawn probably not. If you look at the state and local government component, you are talking at least 500 billion. You could cobble together a stimulus package that is slightly under a trillion that would have an impact, but maybe not enough, but they may also say to themselves, lets wait until after the election to get this done. They may be thinking, while they cannot get this done now at a level that they are comfortable with, get it done now to help the economy through the fall, continue through covid19, and then aim for a bigger package postelection. David always great to have you with us, shawn golhar. Coming up, the path of an erratic virus with dr. Jay bhattacharya of stanford. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. We have now had 5 million cases on covid19 in the united dates, although the number of additional cases these days seems to be leveling off. Bhattacharya, jay professor of medicine at stanford university. Give us your best assessment of where we are right now. There are times that i think we are getting our arms around it, and other times it is changing from day to day. Jay it is confusing to an extent. The key to understanding it is it is not one epidemic in the United States, not a national epidemic, but a collection of different regional epidemics. Different places are different spots in the epidemic. The northeast seems to have had a terrible time early on and it seems like they are mostly through it. The sunbelt has had a rough time of it, looks like they are for the most part improving. Texas, arizona, florida. California, Southern California looks like it is speaking. There are questions as to why. We had a lock on an almost no cases, and now we see a rise again. The pattern of the epidemic follows a similar course in the region where they are. Places that locked down, you dont get rid of the epidemic, you just delay the onset of it. Down, that do not locked you are going to get a huge increase in cases, because of the nature of the infectious disease. The key thing is how will i be protecting the most vulnerable . If we have the epidemic spreading among the older population that we know die from the disease, have severe damage, i think that is a failure. If we are able to protect those vulnerable populations in , i would sayions that is the best that we can do given there is no vaccine yet. Of us who are parents struggle with the news, in the last two weeks of july, 100,000 children contracted the disease, up 40 . That seems like a dramatic number. It is mixed news. I think it is actually more than that. The number of identified cases is not the same as the number of actual cases. Our testing misses a lot of people. The cdc did a study suggesting somewhere between six and 24 times the number of people have the disease, than are identified. The numbers are probably larger. How worrisome should then be . Great question. Two youngerave children, a 19yearold as well. First, it is important to know that the risk to the kids themselves is much, much lower than older people. Especially elderly people. In california, for instance, not a Single Person under 18 has died during a pandemic. Still obviously a serious disease. More kids have died from suicide, the flu, other kinds of things, than covid. Sense, to kids themselves, the epidemic does not pose a huge threat. , what rolestion is do kids play in spreading the disease around . There the information is interesting. Iceland a study in where they looked at a sample of the entire population, they got a sample from every person, and they sequenced the genome of each virus. If i had a virus with a mutation a, and you had i may haveand ab, passed it to you, but you could not pass it to me. They did not find a single case of a kid passing it to an adult. At the same time, there are things like schools opening in israel, and the virus spreading their. There. For the recent case in georgia with summer camp. Kids can certainly spread the disease to one another. Less of they pose much a disease spreading it to others once they have it. Suggestshe Research Kids play a limited role in spreading the disease. If schools take appropriate precautions, social distancing, masks, it can be safe. Course, every district has their own story, you have to see what resources are available, but it can be done safely. Countries around the world have opened up to physical learning. , it lookss opened up like relatively safely. It is possible to do it, it is a question of designing policies right so that we can do it safely. David what can we do better in virus . G this let me focus in on the testing, whether we are doing enough, not enough. President trump says we are doing too much. Bill gates really lashed out at the job that we have done over the weekend. Paying billions of dollars to get the most worthless test results. No other country has this testing insanity. A bit harsh, but are we really failing at the testing . Of there has been a lot emphasis on getting many of these pcr tests. The main problem is the delays in testing. You get tested, and it could take a week to get the results back. In that week, you could have spread the virus. What needs to happen is a shift toward tests that may be a little less accurate but more rapidly. And cheaply. So that we can get more actionable information. Six statesou know, have banded together, led by democrats and republicans, and they are working with the rockefeller foundation. Test,re going to antigen which are much faster and cheaper but not as accurate. Is that sensible . Jay completely sensible. You want to be able to tell, im going to school today im a teacher. I want to know if im spreading the virus. Even a slightly less accurate test that i can act on right now would be better than a very accurate test where i learned the result of week from now. In that week, i have spread the disease. I am not saying dont do the more accurate test. That can be a part of clinical management, epidemiological strategy, but that can be a part of it. Allowing slightly less accurate tests with a rapid turnaround is a good idea. Testing . At about pool if you dont have a large incidence, you can do a large group, and if nobody has it, they are clear. Epidemiological study purpose, its a great idea. For individual decisions about whether it is safe to reopen schools, those kinds of things, i am not against it, it just seems like it can have a limited role on day to day decisionmaking. David we spoke with dr. Fauci last week. Away from what he said was, we are working on a vaccine. We may get it soon, but dont count on it being 100 effective. We can use the vaccine, but we still need social distancing and masks. Are we going to have to live with this like a chronic disease for a long time . Jay i have felt that all along. We are going to learn to have to live with this. We learned to live with the flu. We learned to live with many infectious diseases. We will learn to live with this. This is not worse than tuberculosis, not worse than malaria, the flu. In terms of its scope on human history. Elderly people, the flu. Infectious, it will cause harm, but shutting down our world to create this one disease, it creates so many harms, we have to learn to live with it. David can we keep the economy going . Jay to some extent. We see countries around the world. Sweden is a good example. Is less, economic hit and they seem to be on the other side of the epidemic. Countries on the other side of the epidemic appeared to be opening up. A socially distanced economy will be less efficient than not socially distanced, so it will have some economic harm. David by the way, we had that with terrorism as well. We learned to deal with that. Thank you to dr. Jay bhattacharya. We are turning to the lebanese government, who resigned after the horrific port blast. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Lebanons government is about to resign. The public is amending their resignation after that terrible port last in beirut that killed more than 150 people, injured thousands, and displaced hundreds of thousands more. Give us a sense, first of all, politically, what is going on with the government there . The government has been under pressure since the blast. It on years of negligence and corruption. Tons of ammonium nitrate, a highly explosive material, was left at the port, for six years, until the inevitable happened. Blameblic has put the squarely on government incompetence, nepotistic, corrupt systems that god has in this place. Protestse big saturday. The Prime Minister promised early elections in an effort to defuse the anger, but that did not work. Want politicians do not early elections. An increasing number of ministers within his government saying that the easiest thing to do was to do to resign. He is expected to go up to the president ial palace and present that formally shortly. Next . What happens does the president asked someone to form a government, is there a new election . Current team stays in place in a caretaker capacity while the different Political Parties in parliament negotiating who to appoint as the next Prime Minister. Not necessarily a good thing for lebanon. A caretaker government will not be able to conclude bailout talks with the imf, clinch International Aid and support that the country needs, and they will not really be able to implement those important structural and Economic Reforms that the International Community has asked the lebanese government to perform in order to unlock billions in aid. Lebanon, because of the complexity of the government system, agreements can take months and months. In the meantime, there is a catastrophe to deal with. Thank you, lin noueihed. Coming up, in the second hour, the professorwith at the George Washington university of graduate school political management about whether these executive orders that President Trump took our lawful, consistent with the u. S. Constitution. Vonnie it is 1 00 p. M. In new york, 6 00 p. M. In london, and 1 00 a. M. In hong kong. Im vonnie quinn. Welcome to bloomberg markets. Here are the top stories we are following from around the world. Pushback on stimulus orders. President trumps executive actions face criticism from states and potential legal challenges. We will discuss the ongoing standoff in washington and when we may see negotiators returned to the table. Boosts its dividend. The barrick from gold ceo mark bristow. And a record year for retail investing. The no trading app robinhood is outrunning its rivals. Retail investors piling into the market. We have a bifurcated equity market today with the s p 500 up. 2 . The dow is
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