We are still fighting for more money. We think the administration is coming in far too low for our heroes. I think we are close in terms of money, we are yielding on that quite a bit. Close on that except we have to see the language. One of the biggest differences is how we put money in peoples act theand in the cares republicans selfishly put in 150 billion for net operating losses benefiting a small percentage of people. Billion, a similar number in this legislation, the for poorer that is families. It is a refundable tax credit, a child tax credit, earned income tax credit. They have zero. 150 for the wealthiest, zero for the others. We are the reverse. 149, which we took down to 54 billion which we took down by shortening the amount of time it applies. As of yesterday they are still at zero. We are hoping they will come up on that, and we have great opposition in our caucus to the tax cut that is retroactive, having nothing to do with the coronavirus. Then we have issues that relate to the language for the election , senses, and the rest. We are understanding our differences, that is progress. We are hopeful. In the meantime, we are proud of our heroes bill we will bring to the floor today. It is the work of all of our committee chairs, it is scientifically, institutionally, academically documented to be what is needed in order to meet the needs of the American People and cut back drastically by cutting the timeframe of putting some of the provisions onto the appropriations bill we are going to be negotiating shortly. Some of us are just waking up to the net operating loss provisions in the cares act and proposed by the republicans. Explain those. As i understand it would particularly benefit Oil Companies and real estate developers. What is the rationale for that and you believe you are a shrewd negotiator do you believe the white house is committed to those net operating losses you say would be 150 billion. Rep. Pelosi that is already in the cares act. Much to our dismay. When the cares act was written it was written on the stimulus on the senate side. We countered with our take responsibility bill, which was a bubble up working families and we came to a compromise. They still had that in the bill. That is in terms of the cares act right now. We have great resistance to it and our ways and Means Committee said we are getting rid of that. Not only that, we are taking away other unfair advantages. 265 of tax breaks we want to take out. The 150 is what directly relates to the cares act, retroactive, everything we are supposed to be doing is supposed to be coronavirus centric. That wasnt. I do not know who benefits from the net operating loss in the administration, but i know the wealthiest people in our country do. Say isnt Something Better than nothing . No. It could be a missed opportunity. Of thes the needs poorest people in our country or the most insecure economically, food insecure, housing insecure, being used to give a tax break to the high end so we can give a small something to the low end. David that makes it sound like that will be difficult for you to go along with. You will have to insist on that. That leads to some of the skepticism that nothing will get done. If it does not get done, what are the issues . I would hope they would definitely come back with a proposal for the tax cuts, the child tax credit, the earned income tax credit refund ability. I would hope they would come back with that. The debate on the other taxes is our leverage. The other is the state and local. This is necessary. You and i would not even be where we are without state and with police and fire, food, transportation, sanitation, teachers, teachers, teachers. Food suppliers, and the rest. They want to nickel and dime our state and local governments, our heroes, people who risk their lives to save lives and how they may lose their jobs. They go on unemployment insurance. What is that . Benefits,tting the meeting the needs of people, fire people, have them on unemployment insurance, instead honore the respect and our heroes. That is the big difference. There are other differences. For example, maybe this is to , butviewers, we have ppp also we have some initiatives for restaurants and venues across the country that for some reason or other do not sit in any of the other categories, and what we are doing is to say these have to be treated differently. We hope Lending Program to have in our discussion some forgiveness of the loans for Small Businesses as well as women and minority owned businesses. That is a discussion. We are well down that path from previous bills. In addition to that, the ,estaurant piece is not a loan it is a grant from the secretary of the treasury, a grant. The Restaurant Business is a community, it affects so much, they are taking a terrible beating. , youif they have a loan can pay the rent and pay the utilities and pay employees. But if you aint got no customers, you aint got no business. This is a much longer grant and i must figure boost to the sustainability and a much bigger boost to the sustainability of the restaurant industry. David there is ground to cover and there is urgency. We had andrew cuomo today saying the number of covid cases is back up to the highest level since may. Every day that goes by we see one company or another announcing tens of thousands of layoffs. Is that putting pressure on either side, on both sides . Rep. Pelosi i would hope it would put pressure on them to do something about crushing the virus. For months and months our first bill, march 4, was about testing, testing. I do not want to go into it. You know the record and history of that. Now we have a big pillar of this bill about testing, tracing, space,nt, mask wearing, sanitation, all of that. Very specific in the language. It is not just the money, it is the language. The way to crush the virus so we can open our economy more broadly and our schools more safely. Matter,the heart of the and one point related to that, one other obstacle to a quicker resolution of this is the osha provisions. We have always needed stronger osha provisions, but in light of the coronavirus, that is very important. And it is an opportunity for businesses to get protection for their workers and for themselves if they implement the strong worker safety provision. Right now if you were an essential worker, which im sure you are in your field, but you are at this lower level of employee, you are deemed essential, you must go to work at the meatpacking firm, whatever. Not implemented any osha provisions. You are subjected to catching the virus. If you do, you have no recourse. You take that home, spread it to your family. If you say im an essential worker, i do not want to risk my familys health in mind by going to a place that does not have the proper osha provision, you do not get unemployment insurance. That more make decent. David i want to come back to something you referred to earlier. That is the half a loaf versus the whole loaf. Put aside the question about nap operating net operating losses and some mission that may be done. Are you better off doing some good for the people that need the support . If we do not get it done before the election, we are talking about going into 2021, isnt it . Rep. Pelosi this is not half a loaf. What they are offering is the fuel of the loaf. We have come down 1 trillion, then we came down to hundred billion dollars. Pretty soon we are just having a conversation. We are not meeting the needs of the American People. You cannot just say just take this. It is a missed opportunity. We are in negotiations, we are talking about money, we are talking about values, we are talking about the language to implement it. If youre going into a negotiation and say i will take the path of least resistance with the smallest amount of money that gives tax breaks at the high end, less to those who need it most. You know better than i as i say to you, this is a consumer confidence, these people spend this money immediately and urgently and inject a man into the economy and create jobs. It is a stimulus. Wait ittructs strikes me we listen to the debate and stimulus did not come up at all. Would it help this negotiation if President Trump got involved rather than delegating it to secretary mnuchin . Rep. Pelosi i think secretary appropriately represents the president s views, and when we have a break in our negotiation he is in consultations with the president. That is not unusual. Bush, hewith president would say people did speak for him, they did speak with him and had to go back. We are pretty far down the path of having understanding of where we are coming from on this. I am proud of my caucus because they have all different views, that is what i love about being notader of a caucus that is that we had exuberance, we are not in lockstep and we are not all on one page, and we have that vitality that has a consensus that is strong and sustainable for the american and scientifically, academically, institutionally, putting forth what we can say defensively is needed and will make a difference in the lives of the American People. We have come down far in the negotiations. Not abandoning priorities, but shortening the timetable and putting some things off to the appropriations. 4. 5 months since we introduce the heroes act. 3. 5 months until we are sworn in as a new congress in less than four months until we inaugurate the president of the united states. We are approaching that horizon, and hopefully in doing so we can be well prepared by coming to agreement now on inflation, which we all want to do. It has to be fair. David lets talk about the president ial election for a moment. We need to spend a moment on the debate. Some say it was not a debate, it was more like overall. You had skepticism as to whether the former Vice President should have participated. Would you advise them to go forward on the next two debate . Aboutelosi you are right using the word skepticism here. Just between us, i myself do not think joe biden should dignify a debate with the president , who has no commitment to fact, evidence, data. He demeans the office he holds, and you saw on that stage authenticity on both sides. The president is authentically a bully, joe biden authentically decent. It was a sad occasion for our country, it broke my heart. Ive not slept five hours combined both nights since then because of what it meant for our country to have a president not commit to honoring the peaceful transition of government or condemning white supremacist, abolishing the Affordable Care , ignoring Climate Crisis and talking about clean air and clean water when he degrades the environment almost every day, or at least does go to three times a week with his policies and decisions. It was a sad occasion. People say they should have had a button that turns one microphone off while the other person was speaking, whatever it is. When peopleand done run for president , the president of the united states, joe biden is courageous. I never thought he should not do it because i do not think he do well. I thought he should not do it because Something Like this could happen. David if it were up to you, one and done. Rep. Pelosi one and done. I look forward to the Vice President ial debate next week. David that is the next one. Always a treat to have you with us. Rep. Pelosi thank you, david. David she is nancy pelosi. Coming up, europe is grappling with the surgeon the coronavirus. We talk with the editor of the economist, Zanny Milton Beddoes next en balance of power and radio. David this is balance of power on Bloomberg Television and radio. A fragile european economy is threatened by the spread of the coronavirus with various shutdowns invoked. For a read on the european economy and what is being done, we welcome Zanny Milton Beddoes, editorinchief of the economist and contributor to wall street week at bloomberg. Great to have you back with us. Give us your take on the ground. What is going on with covid19 . It seems to be coming back. Zanny great to be with you again, if on the other side of the break land tech. It is coming back and we are seeing a rise in cases across europe. Particularly across pain. The summer,lull in guards were taken down, and starting in early september, cases started rising. It is not happening everywhere, particularly france and spain. The u. K. Also rising fast. Italy looks ok and so is germany, although they are going up your the interesting thing is how countries are reacting. Absolutely nobody wants to go back into full lockdown, but you see countries across europe trying to grapple with what can they do in terms of tightening restrictions that may get this under control without them having to go back into a full on lockdown, which would be devastating for the economy. That tradeoff is being made in different places, different countries. Countries are looking at each other, but it feels grim. It does feel like we are going back into the long haul of the spirit david it is the long haul of this. David it is grim for people locked up in their houses and grim for the economy. At one point we thought you were ahead of us on the rebound. I do not know anymore. Zanny it has been interesting to watch. Right now i would bank on the u. S. Recession being shower. Being shallower. It depends what happens with the u. S. Stimulus, but right now i think it is pointing more towards the u. S. Being back farther. It depends on how countries deal with covid itself. It is hard to have an economic recovery when you have the virus raging. We are also seeing the differential effects of the kind of policy response. The u. S. Had a big stimulus to start with. Now nothing for a while, and with luck that will be sorted out soon, but it followed workers, the Unemployment Rate shot up, the credit creation and mechanism are allowed to work. Europe is taking a different approach. Much more use of furloughs in the european context. There are a lot of people who are still being paid by the government and are attached to their old jobs. Many of those jobs, i think, are not going to come back. , welonger this goes on for will see fairly substantial changes in consumer behavior, which has huge impact on travel for retail. The job losses are still being seen and there is a lot more to come. Europe will take longer to readjust resources. There is a real tradeoff. Europe pushing workers much more in their existing job. The u. S. Taking a different approach. Over time, the one that allows Creative Destruction to happen is one that leads to a more dynamic economy. David we had a massive stimulus, 2. 2 trillion, they are talking about more. 750 billion euro package agreed to across all of europe. It sounds like there may be some glitches in that at this point. Where does that stand . Zanny you are right. There are questions, particularly by germany. The word you have used is appropriate glitches. The Bigger Picture is for the euro area, this was a very big step forward. People talked about it being a hamiltonian moment for europe. I think that is an exaggeration, but you are throughout the euro crisis the germans were very resistant to any notion of mutually issue that, any notion going in that mutually issued debt. That rubicon was crossed this year due to a deal between the germans and the french. While you are right there are going to be glitches turning this into reality, and the e. U. Is a long way from finalizing andi think a symbolic mental rubicon has been crossed in that it will happen in some form, that is a big step forward. David in the united states, it has not been only fiscal stimulus. The Federal Reserve has stepped up with approaching zero Interest Rates as well as bond buying and Lending Programs. The ecb also has stepped up. How do you assess what they have done so far . Is there more they can do . Zanny they have stepped up. I would say the fed has stepped up even more ambitiously. Backstopping everything. The ecb has done a lot. It could do more in its communication as not been quite as clearcut, and i think in europe there is a sense where now that the european government has to do more, maybe the central bank does not do so much. Paradoxically you need to be pushing on both fronts. The ecb is not out of the woods. If you look at the expectations in europe, they are way below its target for the foreseeable future. It is not out of the woods, and the european economies are not out of the woods. David lets come back to jobs. You mention them briefly. What is the situation in jobs . People were kept on the payroll by government subsidies, although those seem to be coming down in places like the united kingdom. As a practical matter with jobs, are we in danger of a jobless recovery . I see pmis reporting zanny it is not even a jobless recovery. We are in danger of seeing a sharp rise in unemployment. Jobs that are no longer real jobs come to an end. Governments are not going to be able to keep paying people to be attached to their old jobs forever. At some point, those jobs will be lost, people will be laid off, we are seeing it. We are seeing firms upon firms laying people off. My worry is we see a large rise in unemployment before we see the jobless recovery. There is a short to mediumterm problem of rising unemployment, and then you have the challenge of how do get unemployment back down and how you get people trained and able to move to the jobs which are going to happen in the areas that are growing. That is where you need the ability to have Public Policy and help people from declining sectors to growing sectors, and europe has not traditionally been terribly good at that. David is there a leader . Is Angela Merkel still the leader . Singlethere is not a one, but Angela Merkel has done remarkably well. Germany has handled this relatively well. She has handled as well. She has stood out. Every time you look at this, a different country appears to be doing relatively better. It is a game of whackamole. That is what it feels like. David exactly. Zanny milton beddoes, editorinchief of the economist. Up next, we continue our look at the swing state of ohio with the democratic tongass men. Congressman steve shabbat. This is bloomberg. Steve chabot. This is bloomberg. David this is balance of power, i am david westin. We go to