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tv   Bloomberg Markets Balance of Power  Bloomberg  October 4, 2019 12:00pm-1:00pm EDT

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meets the world of business. on the brief today, carl riccadonna on the u.s. jobs numbers. from the white house, josh wingrove on the impeachment inquiry, and from london, edward evans on johnson's one-week deadline for a brexit exit. let's talk about jobs numbers. they were softer when they had been, but not alarming. carl: we can call off the recession, but still weak enough the fed should continue easing policy later this month and later this year. david: what about wages? what about hours worked? carl: still running on the low end of the spectrum. that continues to signal a risk of a broader pullback. not the stall speed for the economy, but enough to signal a coolness in the underlying trends. you the number tells fed does have a free option to
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continue moving toward more accommodative policy. as richard clara suggested, there is no evidence of an overheating labor market and that gives the fed the option to cut. have seen some slowing in the economy. you are projecting slowing in the growth in the last quarter. we talked to larry kudlow. he said it is going to get better. this is what he said. >> i think the economy is in a turning zone and i think we have had a soft two quarters, but i think now we will be moving into a much stronger economic story. david: that is happy to hear. is there every -- is there any evidence of that? carl: i think we are turning, but i think we may be looking for a tougher slog over the next couple of quarters. we have been conditioned to two plus percent gdp growth. what we will see in q3 and q4 is a lot of engines of economic growth shutting down, with the
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exception of consumers. with consumers muddling through the pace of spending that would be consistent with what we are seeing on the income side of their balance sheet, that tells us the economy is going to be growing at less than 2% growth in q3 and q4. that will feel a lot weaker, and an array of economic indicators, we saw hints of that in the eyes them surveys, we sought showing up in the payroll slow down, you can see it another economic data. david: one of the key cyclical indicators is manufacturing. what did we learn from the job numbers about manufacturing? carl: we saw that over is pulling back. the manufacturing job creation turned negative. importantly, we are seeing a buffer that manufacturing, which is in contraction, is not pulling the broader economy down with it. it is weighing on economic activity, but if you look at goods producing jobs in general, they remain in positive
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territory. if you look at service industries like business services, trade transportation and warehousing, it is still generating jobs. that tells you this is one of those classic episodes we have seen earlier in the cycle where manufacturing slips into a mild contraction but the rest of the economy is able to eke decent, but not great growth. david: always good to have you here to talk economics. that is carl riccadonna. now we go to josh wingrove at the white house. the impeachment inquiry seems to be moving ahead fairly quickly. yesterday we heard from some of the diplomats at the state department that there was talk about had a -- about how to handle ukraine in connection with president trump's call. joshua: those texts are jumping out. whether what your view of this is, you are may be cherry picking different parts. president trump commented, saying one of the text said there is no quid pro quo.
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that is the text he had seen. the text that was responding to was an expression of concern, one guy was saying i am worried we are holding up aid in exchange for a political vendetta, something to that effect. what we have is the president trying to brush off that. he also said he does not know the ambassador, trying to distance himself from the process. meanwhile, the ig is speaking on capitol hill to lawmakers right now. things are inching forward. the next fight will be about whether the white house tries to force nancy pelosi to hold a vote on impeachment. that is unclear. david: the inspector general -- it is the intelligence community inspector general and he is the person who took the whistleblower complaint and said it was credible and urgent. what are we expected to learn from that testimony today? josh: the thing with all the testimony is it is dribbling out and we have reporters outside
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hoping to hear from it. the text that landed late last night where the products of hearings yesterday. we are in an hour to our situation. president trump did dial back his comments a little bit today. forerday he called publicly china it ukraine to investigate joe biden and his son, today he just said that nations should help them in fighting corruption. he insisted this is not about politics, it is about corruption. he spoke a lot about joe biden to the press. this is very much on the president's mind. he struck a less combative tone than yesterday, but they are trying to ride this out, including key figures in the administration like secretary pompeo and mike pence. everyone is circling the wagons around president trump on this issue. republican unity mostly having traction with a couple of exceptions. david: thanks a much for reporting from the white house. that is josh wingrove reporting.
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now we go to edward evans in london. i understand there's a deadline. i have heard it is a week, i've heard 10 days. what is the deadline applicable to? edward: a little over a week to come up with a better proposal for a brexit deal. thatjohnson has offered is britain should leave the eu customs union but northern ireland should stay within the eu single market for goods and services. in practice, that would mean the introductions of custom checks on the island of ireland. what we will see is a period of negotiation and it looks like that is now beginning toward some form of time-limited backstop. that will be staying in the customs union for a limited period of time. we will see whether we can get to that. eu leaders will be meeting on the 17th of october in brussels.
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they want to have a deal on the table by then. they will not have a negotiation. time is running out. it looks increasingly like we are going to some form of extension. david: that was my question. bu described a plan a, a plan , if neither one of those works, do we get an extension or do we get a hard brexit? boris johnson has promised to leave the eu by october 31, do or die. that looks like an increasingly hollow valve. there is a court hearing in scotland where the prime minister's lawyers pledged he , a piecede by the act of legislation introduced in parliament that forces him to seek an extension from eu leaders if he cannot get a deal by mid-october. downing street sources have been clear they are looking for ways around that. the obvious other way around would be to find a deal. that is not looking likely.
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it looks like this is going into an extension or an enormous court battle and the second half of october. david: thank you so much to edward evans. now i want to go to hong kong. we have live pictures. news leigh of bloomberg joins us on the telephone. is this all about the mask band? at is the thing to look how people are coming onto the streets. coming out before carrie lam had finished making the announcement. since then, we have seen a stream of people continuing to protest in the city center and we are looking ahead to protests over the next couple of days. they will be focused on the band and opposition to it. this is something, we have seen violence increase over the last couple of week that culminated on tuesday with the shooting of a protester with live ammunition for the first time since protests broke out in june.
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that represents a massive escalation of the violence to a lot of people. you see the government take this huge step in enacting an emergency ordinance that has not been used in more than 50 years in order to take away the ability to wear masks that has become a symbol of resistance for protesters here. we will be looking at -- what we will be looking at is how does it feel the anger. -- whether iting calms the protests down, or people get angry or less trustful of the government and the police force and come out in fuller force. that is something we will not know for the next couple of days. based on the anger we've seen in the past hour, it is likely to be another weekend of violence and protests here. david: thank you so much. from hong kong that is bloomberg's karen leigh. now let's look at the markets
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with kailey leinz. kailey: all of the average marching toward 1% gains. the payrolls not as bad as some had feared. 10 of the 11 sectors in s&p 500 are higher. the only one down his energy, despite the fact that oil is higher today by .4%. this is the first gain for oil in the past nine days. risk assets by the risk on sentiment. let's take a look at the weekly chart for the four major averages. the pain we saw earlier this in concern in manufacturing is enough to maybe have a negative week for the s&p 500 and the dow. it would be the third consecutive loss for those averages. out a weeklyy eke gain. apple rally off the back of a report that the company is
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looking to expand production by 10% of its new iphone 11 on stronger-than-expected sales. you can see the rally for the stock continuing, year to date up 43%. the stock market cap is above $1 trillion yet again. let's take a look at other positive movers. that is the homebuilder. the longform payrolls number not as bad as the market was expecting, but not enough to take out odds of another rate cut. the market pricing is 75% chance of that right now and lower rates mean lower mortgage rates. homes all higher to the tune of 2%. david: thanks so much. coming up, u.s. jobless numbers week in a bit but unemployment numbers decline. how fast is the u.s. economy growing? we talk about the leader of the organization with growth in its title. david mcintosh joins us next. this is bloomberg. ♪
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david: we turn to mark crumpton for bloomberg first word news. mark: the supreme court will hear its first abortion case with the new conservative majority. the justices have agreed to rule on a louisiana law that requires doctors who perform the procedure to get admitting privileges at a local hospital. the law is similar to a texas measure the court struck down in 2016 before brett kavanaugh replaced anthony kennedy. the trump administration is taking steps to temper criticism from farmers and midwest politicians before next year's election. the environmental protection agency outlined plans to boost demand for ethanol and corn-based biodiesel. the move is designed to make up
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for waivers exempting small refineries from those mandates. by actions were provoked anger and politically important farm belt states. in japan, questions in parliament about a nuclear payoff sale or delaying shinzo abe's bid to pass a u.s. trade pact. a energy to summon company to parliament on concerns they have been accepting excessive gives. prime minister abe wants to focus on passing the trade deal reached last month with president trump aimed at fending off threats to slap tariffs on autos. in iraq, security forces opened fire on hundreds of antigovernment immanence traders in central baghdad. one protester was killed. global news 24 hours a day, on air and @tictoc on twitter,
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powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david? mark. thanks so much, a sharp downturn in manufacturing and weakening service sector numbers do not seem to of hit jobs very hard, at least not yet. everyone is at least concerned about the growth of the u.s. economy. we welcome david mcintosh, president of the club for growth. great to have you here. the numbers seem to be coming down. we are not continuing the breakneck pace. how concerned are you about the jobs numbers? david m.: i are not concerned with these. i think they showed a steady report. if you look at the annual average, about 160,000 jobs each month. that is 60,000 more than we saw during the obama years, when it was a flat economy. we are still adding jobs. the unemployment rate hit a historic low. in political terms, that is
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helpful to president trump, it gives him leeway on the economy, at least with the average american. for the markets, i think what it did it show everybody we are not on the precipice of a collapse. we saw the bounce up today in the markets. what that means is they will be watching for the federal reserve and a couple months and see how things come out from here. david: go below the top line numbers, particularly in manufacturing. ism numbers have come in week, and the jobs numbers were disappointing. although it is not a huge part economy, it is cyclical economy, it is cyclical and it could be an indicator. david m.: it is a concern, and i think the solution there are policy changes. we have on the table the president's with canada and mexico, the usmca. he will pressure nancy pelosi in the house to pass that, which will then send a signal to manufacturing that they can
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invest, they can hire more people and move forward in a forward in a more robust fashion. david: what you make of the politics? you live in washington and you know this. we have heard various reports. the chamber of commerce was here. they think they will get it done by thanksgiving. david m.: i think it is possible. the question is are democrats committed to just going after impeachment or will they try to get some things done everybody agrees are good for the country? i think nancy pelosi will have pressure from her new members who said they will not join the radical liberals. they need something to take home and say we can work with the president when it is a good thing. if she blocks it, those new freshmen could be in trouble. david: can congress walk and chew gum at the same time? can they proceed with the impeachment inquiry into the same time legislate something as important as usmca? david m.: it is difficult for
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them to do both. it is a very difficult needle to thread for nancy pelosi. the reality is she was reluctant to go forward, but she had tremendous pressure from her far-left and the core of the democratic caucus. -- fought with the ukraine she thought with the ukraine scandal she could have cover with doing that. my thought is it will turn out to be a tempest in a teapot, and at that point she will need something to help her moderates. david: look out into the rest of this year and into 2020 on jobs. we heard from larry kudlow earlier saying he thinks the turnaround is here and we will accelerate. we also talked to torsten slok from deutsche bank. this is what he had to say. think it will continue to slow, jobs going down to 100,000. we think the unemployment rate will go up. we are getting worried trade uncertainties, ism manufacturing
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will begin to show up in the data. david: over and under. which you take? david m.: i am more inclined to agree with larry. they continue to deregulate and that is a sleeper impact on growth and jobs. employers,e cost for the regulatory burden. as they ease up on that in the trump administration, that will help us bring the number back up. david: they certainly tried to continue to deregulate. we hear a lot of reports that if you look at the court challenges, they are losing more than they are winning. it is not that easy to deregulate. david m.: it is difficult and often takes years. it is a signal to the businesses it is moving in the right direction. the other thing that is good news is it is happening under the radar, across the agencies. as they might lose in one case but they will pickup and others, you saw in your report on ethanol. they're making it easier to produce that. david: could the president fix a
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lot by coming to terms with china on trade? david m.: that would send a tremendous signal. he and china have different incentives to reach an agreement not to escalate the trade war. for the markets, that would be a positive signal. david: how disturbing is it that if the president brings china into the question, does that confuse two things? we have a china trade issue and now we are going to talk about buy-in corruption? david m.: i think his goal was to remind people the real issue in ukraine is biden and his son. china happened to be a vehicle. he wants to focus on biden and have the media focus on that. david: great to have you here as always. that is david mcintosh of the club for growth, which he leads. starting on monday, balance of power will be live on bloomberg television and radio at 12:00 noon eastern time, and that will be followed by a radio only "balance of power" at 1:00 eastern time.
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you can watch us and listen to us. live from new york, this is bloomberg. ♪
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david: you are watching "balance of power." i am david westin. time for the stock of the hour. dominion energy is higher by 1% today after the supreme court said it would hear a coast -- a case on its proposed atlantic coast pipeline. kailey leinz is from virginia. she knows this case. kailey: seeing a lot of protests around this case specifically. this is supposed to bring natural gas from west virginia through virginia and north carolina. a lot of environmental groups have opposed this. there has been litigation and delays. the specific case the supreme relates to the
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purview of the national forest service. a lower appeals court threw it out, saying the u.s. forest service did not have jurisdiction and could not approve this. the argument of the lawyers and the trump administration is that because this is a natural forest -- a national forest, the forest service should be able to grant those approvals. that is what the court will hear. our analyst say that the fact that that's supreme court agreed to hear this leads us to believe the lower appeals court was wrong and the odds are stacked in favor of the project. david: the pipeline company one below. the u.s. government said take this case. it is not good if you're opposing this pipeline. what is at stake, depending on the how the court rules? kailey: it could mean further delays. this project has been delayed at again and again. there is costs associated with that. also, the question is what kind of legal precedent could this
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send either way? if you have a court ruling in favor of this, the forest service can do that. it could put potentially other pipeline risks, specifically as a relates to trail crossings, pipelines that want to cross trail such as these, should the court ruled the far service cannot grant permits, it may have to go through congress, which may be a lengthy process. david: president trump says he likes pipelines. kailey: the trump administration is all for this. david: many thanks to bloomberg's kailey leinz. president trump says he was just trying to go after corruption. democrats say he was asking a foreign leader for a political favor. we try to sort it out with our political panel. this is bloomberg. ♪
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david: this is balance of power on bloomberg television. i'm david westin. for bloomberg first word news, we now go to mark crumpton. mark: president trump is
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fighting back against the impeachment inquiry. leftg to reporters as he the white house today, he said his administration is preparing a letter to house speaker nancy pelosi, formerly objecting to the house democrats conducting their inquiry without a formal vote in the house. when asked if he would cooperate with the investigation, the president said "i don't know. that's up to the lawyers." ukraine's top prosecutor today said his office is reviewing several cases related to the owner of a gas company where joe biden's son sat on the board as a part of a review by all the criminal cases closed on his predecessors.he told reporters that processors are "auditing all the cases that were closed or dismissed by former prosecutors, and set of -- including several that are related to the owner of the gas company, who hired hunter biden in 2014."
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the timing raised concerns among anticorruption advocates. there has been no evidence of wrongdoing by either the former vice president or his son. british prime minister boris johnson says he is holding refit.on he tweeted "new deal or no deal, but no delay." earlier, the prime minister had promised to send a letter delaying brexit if he could not get a deal with the european union by october 19. the eu and johnson are set to meet later this month at a summit in brussels, where they hope to be able to sign off on the agreement. in hong kong, the court has decided to not grant a tampa -- temporary suspension of a law that for bid protesters from wearing masks. at ban is due to take effect midnight. protesters responded by calling for a master administration this weekend with everyone wearing demonstration this
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weekend with everyone wearing masks. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. crumpton, this is bloomberg. david? he may haverats say committed unimpeachable offense, but president trump continues to insist that he did nothing wrong in his telephone call with the ukraine president, tweeting this morning "as president, i have an obligation to end corruption, even if that means requesting the help of a foreign country. this has nothing to do with politics." we will see. we welcome a political panel with amy tarkanian, coming to us our other nevada, and --st, a president at college. the president is doubling down, saying i am proud of it, i did it, the president should be against corruption and that is what i am doing. what is wrong with the argument? >> what appears to be wrong with the argument, because they are still investigating, the
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president, with the tweets this morning and going back to the phone call, appears to be sending people out on his behalf -- not just rudy giuliani, but others, to tell our relations in foreign countries that he will play games with them, he will play ball with them if they do something in return for him, which is investigating a political opponent. he said it openly on the white house lawn yesterday about china and on the phone call about the ukraine. in saying it publicly does not mean there is anything -- him saying it publicly doesn't mean there is not anything wrong with that. david: is this political or around corruption? there were internal communications, people who are presumably loyal to the president, saying we think this is political. amy: he said it numerous times this morning in his press conference, this is not a political purpose. this is strictly his duty and his obligation as president of the united states to look into corruption, plain and simple.
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not matterd, it did if it was biden or not. this all stems from wanting to find out, where did this whole narrative begin? where does this whole collusion story begin with the russians interfering with the 2016 election? is this all stems from the ukraine, he felt obligated to then ask the ukraine themselves to also help the investigation. he has had be a justice department, the attorney general that he has had the justice department, the attorney general was supposed to be spearheading this, but the president is expressing on twitter, to the public -- who is exhausted and tired of being told one lie after the next -- we deserve transparency. we deserve to find out who did what and when and why. david: i will ask you, jeanne, to what extent and other business go on in washington at the same time this is happening?
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we have the usmca, up for passage, and u.s.-china trade talks. the chinese are coming in next week to negotiate. bloombergow was on television early this morning and claims that they can go ahead and ask the chinese to investigate the bidens and still do a trade deal. this is what he said. the have not spoken to president on that. it does not sound like that is going to have much of an impact, if anything, on the china trade talks. david: how does this work? wethis right, on one hand, have to investigate these people, but let's talk nice about china and trade. jeanne: i hope they are able to talk trade and it doesn't get involved, but i think it already has. if you look at the meeting with the finished president -- with the president, you know how this goes. these impeachment proceedings and inquiries dwarf everything that is going on in washington, d.c. today, including talks as important as the ones coming up on china tariffs.
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we know now and he said publicly that he asked china to investigate the bidens. i agree, a president can ask to investigate corruption, but you are specifically naming your political opponents, joe biden. that does get in the way of those talks coming up next week for all of us, unfortunately. david: we have seen these impeachment inquiries play out in our lifetime more than once, and it comes down to whether the president's party sticks with him or not. we do not have republicans up on the hill going against him, but a tweet todayrom by senator romney, that says by all appearances, the brazen and unprecedented appeal to china and the ukraine to investigate joe biden is wrong. does that mean there is some shaking in the republican senators particularly? amy: senator romney has always been a never trump are. senator romney has always fought against this administration. that bear says enough are in support of this administration.
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as far as dealing with the impeachment inquiry overshadowing everything that needs to be focused on in congress and in the senate, it is a shame and it is disappointing, and it is interesting, because in the daily caller, i happens to catch right before i came on, there is an article -- even aoc is saying she is now bored with this conversation of impeachment and it is time to move on. i think they are now seeing they are getting nowhere. over -- nott has over, but fun raised -- fun raised -- fund raised more than any of the candidates, more than $100,000. enough is enough. david: don't voters have to be a little careful? we do not know what they will find in this investigation. sometimes they take on a life of their own, and if they go out too far on a limb, it could get cut off behind them. and transparency is good.
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the public does deserve to find out all of the facts, and if we do find out that unfortunately, it is not going to go down the right road for this administration, then that would be terrible. but in the meantime, if you are going to have this investigation happen, let it happen. let's move forward to collect correct way, and in the meantime, get back to work. let's focus on other things like border security, veterans issues, usmca and other trade talks. david: investigations have gone on for months and months and even years. it appears speaker pelosi wants this wrapped up at the end of the year. is that doable? jeanne: a very, very quick timeline. and if you look at the romney timeline, it took two years before the republicans stopped staying with richard nixon before the tapes were released. the republicans condemning the statements and activities on
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twitter, this is a problem for them. he must keep those republicans, even the ones he doesn't like, in the house and the senate on his side. david: we will know the answer fairly soon, one way or another. thanks to our panel. coming up, jobs day always raises questions on whether we have the skilled workers we need and whether our education system is producing them. who ranwith the man education for president obama, arne duncan. that's next, this is bloomberg. ♪
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david: you are watching "balance of power," i'm david westin. arne duncan went from playing basketball in the south shy to -- southside of
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chicago to running the department of education under president obama. he has written about this in his book "how schools work: an inside account of fair success." .e welcome arne duncan back he comes to us from chicago. thank you so much for being here. arne: thanks for having me. david: this is jobs day, and one of the questions that always comes up is do we have the skill workers we need to satisfy the jobs desired? someone earlier on bloomberg television who said, if you do not get them down the street, you can get them overseas. take a listen to what he said. >> if i can get low-quality workers to do it at a lower rates, that is what we are competing against in america. it is not a person down the street or the person in a different state. there are qualified people that do a lot of processing
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work, and even legal work and i.t. work that can be done across the globe. david: talk about the united states as a competitor for skilled people around the world. are we losing that competition? concerned very, very about it. that is a great point he made. a great military is our best defense, but a great education system is our best offense. we live in a global economy, as iu know better than i, and desperately wants to keep those good jobs in our communities, states, and the nation. if we don't compete, if we don't educate or innovate, we will find those high skilled, high china, india,s in singapore and japan, wherever it might be. we have to continue to get better. our overallt education system, david, on the early childhood side, we rank 28th, 29th internationally,
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which i think we should be ashamed of that. on k-12 education, we are somewhere between 10th and 15th in reading and math scores, and higher education, we rank about 12 in the world. so we are top 10 in nothing. there is nothing democratic or republican or liberal or conservative about this, we should have some nationbuilding goals to be the best educated workforce on the planet and keep those high school jobs here in america. -- high skilled jobs here in america. david: and you say, it is not for a lack of raw material. brains and talent are not distributed according to zip code. it is not like there are people out there who, if they are y, weoped the right wa can't have skilled workers. what do we need to do that we are not doing? arne: it is a lot. i start with high-quality, early childhood education. i i had one more tax dollar, would put that behind giving another child a chance to get off to a great start in life. proud k-12 side, we were
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through the obama administration to get high school graduation rates to historic highs of 84%. the goal as a country should be to get that to 90%. i wish the current administration was more focused there. in higher education, we should be focused on leading the world. a generation ago, we were first in the world. it is not that we have dropped, we have flatlined, stagnated, and other countries have out innovated us, out educated, out invested. so leading the world in high-quality pre-k, trying to raise our high school graduation rate, because none of our high school dropouts have a chance to work in those high wage, high skilled jobs, and trying to make up commitment -- make a commitment to lead the world in college completion. if we did those things, our families, communities, and nation would be that much stronger. david: at the risk of emphasizing liberal arts education, graduate education,
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to your education, too much and going through trade schools? unemployment is still higher than the norm, but just over 4% for people with a high school degree. are: in education, these often false choices, a false dichotomy. it is nether either/or, it is both/and. we need a lot more people with liberal arts degrees and a lot more people with in vocational and technical skills. it is not about going in this direction or this direction, the goal is figuring out for every single young person, what is their genius? what is their passion? what are they excited about doing and providing them with those skills to be successful? lot more liberal arts graduates and people with more vocational and technical skills to go right to the workforce, and let young people themselves choose. and let workers come back. retrain and retool in those technical areas and let them get back out there and help their families. we are all concerned,
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certainly in new york, in the financial markets in business right now about whether there is softening in the u.s. market and a slowdown in growth. when you talk about preschool education, it sounds like we are generation, 18, 20, 40 years before we see the effects in the economy. is that right? arne: yes and no. it is interesting. a nobel prize-winning economist at the university of chicago has any the long-term impact of assets to high-quality pre-k, and he has found over 20, 30, 40 years, a seven to one return on investment. for all the businesses you look at and study, that is a pretty good return. there are very view places where you can put a tax dollar behind something and get $10 back. less teenage pregnancy, less dropouts, less incarceration, more people becoming productive citizens and taxpayers and giving back. it is absolutely a long-term investments, the best investment we can make. david: we are getting a question
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from a viewer, and it is a pretty good question i want to ask you -- why do we educate the kids the same way we did 100 years ago, in boxes and uberrooms in this age of and amazon? and it is longer than 100 years, goes back to the late 19th century, doesn't it? arne: it is a very good question. i had the fortune of visiting hundreds and hundreds of schools around the country during my time working for president obama, and i saw amazing, innovative, creative schools, and some that were very traditional -- to traditional, quite frankly -- too traditional, quite friendly. i think we need to move away seat time and towards competency. if you can learn algebra in three months, you should move on. i think we need to rethink the american education system. we the past 100 years, basically had compulsory high school and for a long time, that drove the booming middle class and economic road here in the
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united states. we were way ahead of other countries. i think that high school diploma, while important, is insufficient. i think we have to move from a k to 12 system to a pre-k to 14 system, where every expectation, children have access to pre-k, they can enter kindergarten with the academic and social skills to be successful. while a high school diploma is important, it is not enough to get a good job. so community college, somewhere beyond, grades 13 and 14. we knew a new system that goes from pre-k to 14, not k to 12. david: in this world of digital, and particularly artificial intelligence, what guilt, if any, can we teach them that will still be necessary, or are we eliminating a lot of jobs period because artificial intelligence will replace most of us, certainly me? arne: i think you are doing pretty well. i think there are skills that
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are always going to be needed. what is the nature of work today, david? can we solve problems? there is no shortage of problems in the world for us to solve, so the real question you are asking is, what are the skills necessary to solve those problems? there are a couple -- the ability to think critically, the ability to articulate your ideas and viewpoints both in writing, on paper and verbally. team,ance to be part of a feel confident in diverse teams. if people had the skills to think, process, share information and work as part of a team, those general skills will help people forever, regardless of how the economy changes, what happens with automation and ai. david: arne, always great to have you with us. secretary of education arne duncan. i am delighted to say that we will have more with arne duncan, coming up on bloomberg radio at 1:00 p.m. eastern time. live from new york, this is bloomberg.
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♪ bloomberg. ♪
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david: this is "balance of power" on bloomberg television, i'm david westin. white house hopefuls are starting to review revealed their third -- revealed their third-quarter fundraising totals, and bernie sanders is in the lead. our reporter joins us from washington with what we know so far in today's update. bill, welcome. who was the big winner? bill: aside from bernie sanders who has the top numbers of any democratic candidate running, is elizabeth warren, bringing in $26.1 million. like bernie sanders, she is using an all small dollar donor strategy with online donations. it does not take a lot of time to raise this money. she is a little behind sanders, but the two of them are the top of the heap in raising money. david: and showing a tweet from
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senator warren right now, making now, making a point at 300,000 plus of the donors are giving for the first time -- that is remarkable -- and in -- an average contribution of $26, which shows the breadth and the depth of her fundraising. bill: one of the things about that, when you have -- i think we know there are a lot of small dollar donors, sanders' average is $18 in the third quarter. even joe biden, who iseven joe g much more large dollar fundraising, his average is around $40. candidates are trying to make that small dollar donor appeal, and one thing to bear in mind about where we are in this cycle, joe biden just raised $15.2 million. people are saying this is a disappointing number for him after raising almost $22 million in the second quarter, the opening quarter.
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the third quarter falls in the middle summer, and a lot of the third quarter falls in the middle summer, and a lot of people rely on -- if you rely on these big-ticket fundraisers to raise money, it is harder to do it in the summer. meantime, we have the former vice president joe biden -- in the polls, i do not know if he is slipping, but it looks like elizabeth warren is catching up or passing him of it. how is he doing it -- a bit. how is he doing in the fundraising? bill: a lot of people are saying that was a disappointing number, the $15.2 million he raised in the third quarter. that is down from $22 million in the second quarter. some political professionals are saying look, these top four candidates in the forefront, -- being mayorat pete buttigieg, at $19.1 million, if you look at what they need to get through iowa and new hampshire, they will have plenty of money. it is interesting that biden, who has never been a great fundraiser -- he raised more in this quarter than he did in his two previous presidential
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-- he hadcombined been the front runner in the polls for so long, but the fundraising is not really matching that. david: bill, really great to have you with us. that is bloomberg's bill allison reporting from washington. an important programming note -- starting monday, balance of power will be live on bloomberg television and radio at 12:30 p.m. eastern time, and followed by a radio only interview our at 1:00 p.m. eastern time. and sign up for the balance of power newsletter to get the latest on global politics in your inbox every day. also check us out on the terminal. live from new york, this is bloomberg. ♪
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>> i'm jonathan ferro. -- were real yield "bloomberg real yield" starts right now. coming up, a decent payrolls --ort helping to root reduce reduce investor and site he after a round of weak economic data puts investors on edge, making treasuries lower and pushing high-yield spreads wider. does a decent jobs report change anything at all? >> it didn't change anything in terms of the assessment. >> it wasn't as bad as it could have been. >> this is a muddled


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