hampshire, to our tv and radio audiences worldwide, i'm david westin. welcome to "balance of power" where the world of politics meets the world of business. we are broadcasting live for new hampshire for the new hampshire primary, which starts tomorrow. we want to start with the policy proposals of the current president. joining us from the white house is the acting director of the office of management and budget, russell vought. what are the headlines of the budget proposal? >> it is a very important budget proposal. it balances the budget with four $.6 trillion of deficit reduction. more than any president has proposed in history. we have a 5% cut to nondefense discretionary spending. we keep defense growing. we make reforms where necessary with programs like welfare reform to get people off of the

cycle of dependency and onto economic opportunity. david: let's talk about the deficit reduction. maybe it will not be losing white as much money as we thought we were, but it will still be adding to the deficit. we would end up $30 trillion in the red. this is something president trump said he would turn around. what changed? mr. vought: nothing has changed. what has changed is the democrats on capitol hill have refused to consider the spending reform this president has put forward each and every year. we need congress to enact these important savings reforms. we will continue to propose them. we need things that are necessary for economic growth.

done and enacted immediately. we need prescription drug legislation to be enacted. these are all things we deals nd congress to go along with and enact. the president will keep putting forward ideas and proposals to get a handle on our debt and deficit. david: which is important to all of us, obviously. at the same time, this is the president's proposal, this is not what the democrats are saying. the president's proposal may make the deficit less than it might've been, but it still increase the deficit for the for siebel future, isn't that right? mr. vought: it lowers the deficit each and every year. we have a $1 trillion deficit this year, it would begin to lower it in fiscal year 21 and it would lower it each and every year until he would hit balance in 2015 -- in year 15. we would have balance in the 10th year of the budget window. what assumptions are made about growth in the economy? those would be important about whether we meet those numbers or not. what are we assuming about growth? mr. vought: this is a post policy budget and economic policies assume our budget was enacted. we continue our past practice of

assuming 3% growth. we reflect a little bit of a dip this year as a result of some of the things happening in the economy and the reality that our proposals will take some time to be enacted. we believe we can get 3% growth. we think it is vital for the country to be able to grow at that level. we can also assume interest rates will travel more with blue-chip forecast compared to previous budgets. trump. the bigt tax cut through with the help of congress. that did give stimulus to the economy and got as close to 3%. what will it take this time? we already have the tax cut? mr. vought: it is important the increase in business capital will continue as we passed these trade deals, as we restore some of the hiccups we saw this year in the economy. the economy is going great. jobs and unemployment are at 50 year lows. a tremendous amount of job

growth. all of that will continue. we will continue on the deregulatory initiatives. getting pipelines and infrastructure projects done within two years. there are a lot of things we have in the deregulatory agenda that will help us continue to grow. we need to get some of these policies passed and trade deals done. that is why the phase one with china is important. the passage, the signing of the usmca agreement is so crucial. these are other things we will be working on to be able to continue to grow the economy at 3% growth. david: as i understand, the budget proposal will increase military spending, something the president is proud about. at the same time, it will cut discretionary spending, including to things like medicaid. is that a change in the president's position? in the past he indicated he would not cut things like that. mr. vought: i want to be clear, this budget does not cut medicaid.

it grows medicare 3%. there are reforms within medicaid to have block grant were per capita spending amount for the state. similarly, there is a work requirement for medicaid, for housing, for food stamps. these are good government reforms that do not require any kind of cuts but get people out of dependency and back into the workforce to allow them to grow and be part of the economic move. that is not cut to medicaid. medicaid will grow each and every year in this budget. money and there is also in the proposal for the wall .long the southern border originally, president trump said the mexicans would be paying for that. are we sending them an invoice? mr. vought: this budget continues to fund the wall. providing the miles necessary along the southern border. we have had tremendous success in getting the resources needed to be up to a thousand miles

along the southern border. in terms of our relationship with mexico, they are doing a great amount of work to help us contain our immigration problem along the southern border. putting their national guard to use. helping us with detaining people waiting on some of their immigration. this is an important budget, huge increases for ice in the budget. this is a security first budget as well. a larger there philosophical change in this budget. we are increasing budget and substantially cutting discretionary spending. historically what has happened on capitol hill as we have to have those in lockstep? is the president saying we will delink those? mr. vought: we are saying that and we have said that for the last three budget. we cannot afford to continue to increase defense spending and nondefense spending at the same time. that is why we have proposed to

allow defense to continue to grow. we have a spending increase for nuclear monetization -- modernization. we have 5% reduction for nondefense spending. that includes cutting foreign aid by 21%. over the course of 10 years, we have to begin to identify waste and inefficiencies in the nondefense area and be able to make certain priorities and choices. that is what budgeting is about. that is what the budget does. david: thank you so very much for your time. a very busy day. that is russell vought, the acting director of the office of management and budget coming to us from the white house. president trump spoke just moments ago at the white house while he was meeting with the nation's governors. let's listen to what he had to say. president trump: now we have car plants being built all over the united states and we have expansions of existing plants. it has been an incredible thing. we are doing incredible work and

we are the number one country in the world in terms of the economy. when i was running and long before i was running i had always heard that china -- great respect for president xi and for china -- but that china was going to be the number one economy in the world during 2019. it was 2018 to 2019. you all heard we were going to number two. i will tell you we had our battle. we took in hundreds of billions of dollars in tariffs and other things. you saw that it was just announced the trade deficit is the lowest it has been in years with china. we are now so far ahead of china in terms of the size of our economy that if somebody is smart that has had this position into the future, hopefully after five years, i will not joke by saying nine, 13, 15.

it drives them crazy. even when i joke, it drives them crazy. if somebody smart is in this position, it will never happen when china overtakes us. it will never happen. we are so far ahead of them they're not kicking us for a long time. here, wrong person stands or sits in that beautiful chair ,n the white house oval office 1.5 billion people, we have 350 billion people, but we have a special place in the special country. nobody is going to catch us. you've been clear eight leaders for years -- you've been great leaders for your state and we appreciate you are at the white house. i thought maybe we could take a few questions. if you want, we could leave the press, or we could have them leave and we could talk in a different fashion. you will not have to show the.

guess you will not have to show -- you will not have to show boat. we will leave them here for a while and then will go a different route. any questions? you have budget coming up today -- when do you unveil infrastructure. pres. trump: we are doing a big infrastructure deal. we need the votes of democrats. they have been so focused on something else and wasting a lot of people's time, although my poll numbers have been driven way the hell up, so that is one way to do it. they have been so focused on the impeachment hoax they have not had time to do anything else. we are ready to go with the infrastructure built if they are ready to approve it. we are also ready to lower drug prices substantially. last year was the first time in 51 years drug prices, prescription drug prices went down. the first time in 51 years. to get them really down we have

to do exactly what we are doing. we need the votes of the democrats and they did not have the time to do anything. maybe they will now have the time. we are already to go on infrastructure, on reducing drug prices. we can reduce drug prices unbelievably easily and substantially, but we have to get democrat votes. thank you. >> you had a lot of success with trade. what is next on your agenda for trade? pres. trump: europe has been treating us very badly. was formed tonion treat as badly, so they have done their job. that was one of the primary reasons. there, theys badly treat as bad on nato. nato was going down like a rocketship. our past leaders would go over and make a speech. states was paying everything.

essentially they were paying close to 100%. i let them know that we have no choice. they are paying more. they paid $130 billion. my biggest friend in the whole world is secretary-general stoltenberg. he says he cannot believe it. for 20 years it went down. it is like a roller coaster. they paid less and less and less good than it got more expensive and more expensive. $130 billion and i raised $400 billion the second meeting. now it is in good shape. we were taken advantage of by a lot of countries and a lot of allies. sometimes allies do a better job than the enemy. the enemy as you watch out for. the next thing could be europe, where we talk to them seriously. because thereo it

has been over the last 10 to 12 years, there's been a tremendous deficit with europe. they have barriers that are credible. i did not want to do them while we were doing china, japan, south korea, i do not want to do the world at one time. does that make sense? that does not work out well, even on trade. we will be starting that. they know that. they are ready for it. we made a good deal with japan. we will do a much more comprehensive deal, but we are taking in $40 billion from japan which nobody expected. we have done great on the trade. it will have a tremendous impact . a lot of people think the virus goes away in april with the heat . typically that will go away in april. we are in great shape. we have 12 cases, 11 cases, and many of them are in good shape now. a very good question. colorado? criminal aliens -- what are

your ideas for the dreamers and the folks that are here that are hard-working and it is tough and they work on our farms and the kids grew up here. how do we do that and also enforce the other side for those who violate our laws? pres. trump: we almost had a deal on that with the democrats. it was done, and then we lost the decision the democrat said trump, who is that? we were close to having a deal on the dreamers with the house and with the senate. it would've been a good deal for everybody. we are looking at that. now we are before the supreme court. i think we win. , that gives the president of the united states unbelievable powers. president obama signed an executive order, and when he signed it he said i do not have the right to do this but i will do it anyway come and he was upheld by a judge.

it will be before the supreme court soon. at some point we will probably make a deal. i do feel that way. questions? gary? how is mitt romney? >> i have not talked to them. you keep him. -- pres. trump: you keep them. we do not want him. doing a great job in utah. >> states generally do not spend more than we take in. you unveil the budget today, i noticed a concern about a growing debt. i know we have had nonpartisan talks saying this will come back to bite us in the future if we do not do something about it. and how can weng reduce the debt? pres. trump: we are putting on a plan today that over that -- over not that long a time brings our budget and our deficit down

to what it should be, which is close to zero. i think people will be very impressed by it. we are not touching medicare. we want to keep medicare, we are not touching social security. we are making our country stronger. we are not decreasing medicaid. we are doing a lot of things that are good, including waste and fraud. tremendous waste and tremendous fraud. we are doing that in terms of certain programs good we are taking good care of our military. we are increasing spending on our nuclear program because we have no choice because of what china is doing, what russia is doing in particular. we have a good number for that. at the same time russia and china to negotiate with us to stop spending billions and billions of dollars on nuclear weapons. the only way until we have that agreement, the only thing i can do is create the strongest nuclear force in the world, which as you know, over the last

few years we upgraded our nuclear. we are buying new, we have the superfast missiles, a number of superfast, we call them superfast. seven times faster than an ordinary missile. we need that because russia has some -- i will not tell you how they got it, they got it supposedly from plans from the obama administration when we were not doing it, that is too bad. that is how it happened. china is doing it. we have a tremendous $740 billion for military. it is also jobs in the united states. everything is made in the united states, proudly. we have the best in the world, we have the best equipment in the world, the best equipment, rockets, everybody wants our equipment. we have to be selective. withll have a good budget a powerful military budget because we have no choice about that.

do you have something about your plan of buying and cutting prescription drugs? you want to tell them what we are doing? >> we had a panel about your ofinistration's approval laws that prior administrations do not utilize to allow drugs to be imported from canada. that is going through the regulatory process. we do work in our old parallel track and if we are looking to buy things like our prison system because the drugs are cheaper. i think it opens up a larger wire wetion about funding the drugs for everyone in the world? thanks for approving the florida program. pres. trump: colorado is doing that also. you can go to certain countries and the exact same pill made in

the same factory from one of the 50%companies will sell for to 70% less than the united states is paying because it is a broken system. one of the things i've authorized is that certain , probablye requested after this everyone in the room will go back, but if we buy from canada we say 50%. that may go up or come down. one thing will happen or another. either the drug companies will raise it and not make it possible, they will raise it in canada, or everyone will go down. you have a middleman in the middle making a fortune. no one knows who these people are, but they're getting rich. we had a broken system and it is about time it gets fixed. a lot of shakeup will take place. if we had the democrats helping us, we could solve the problem in one day, but they do not want to vote. they do not have time to vote. they do not have time to do

anything other than what they do. they seem to be freed up a lot. how about a couple more and then we will let the press go and relax? governor? administration has done a great job with regards to addressing the opioid crisis and aspects about that. the growing problem of fennel, especially fentanyl coming across the southern border. there is information about a lot of that coming from china. what i am curious is the status with regard to the reduction of fennel from china and out -- of tynyl coming from china. pres. trump: i met with president xi and i said you have tynyl coming into the country. david: we've been listening to president trump speaking with the governors on a wide range of

subjects on anything from europe to nato to opioids, including trade. he also said europe may be the next front for a trade deal. let's get a check on how the markets are reacting. kailey leinz is with us in new york. kailey: we are pretty much where we were when the president started speaking. we are looking at an equity market largely shrugging off concerns surrounding the coronavirus. you have the s&p 500 higher .3% after its best week since june. it is a continued story of tech leadership. the tech heavy nasdaq is higher by more than .5%. if you look at other asset classes, it is more of a mixed picture on rest. you are still seeing buying in safe haven assets. the commodity complex is still under pressure, with wti below $50 a barrel, down 1%. no surprise with the move lower, oil and energy is the biggest laggard on a sector basis. the energy sector down 1.25%. some of the worst performers

within the index are energy companies. occidental petroleum as well as the big integrated companies like exxon, lower by 2.75%. the energy pain continues. not just the worst performer on the sector basis today, but also in 2020 and the last 12 months. many thanks to kailey leinz. for the latest on the reason we are in new hampshire, we welcome our chief washington correspondent, kevin cirilli, who is on the scene and a bernie sanders rally in new hampshire. give us an update. kevin: right behind me as one of senator sanders top surrogates, state senator nina turner rallying up the proud. senator sanders expected to take the stage. he will continue with his pitch of what he is describing as economic inclusivity. they are pushing back against the cynicism that his

self-described label of a democratic-socialist would not be something that would help him in a general election. jeff weaver, the senator senior advisor telling me they are prepared to call the president and "corporate socialist." beyond that, they are trying to seize momentum. the trio of polls that have come out within the past day shows senator sanders leading the field, but with former south bend mayor pete buttigieg a close second. the on that, amy klobuchar trying to battle ahead of elizabeth warren and former vice president joe biden, regardless of who wins tomorrow, there will be pressure on some of these candidates to drop out of the race. ourd: thanks a much to chief washington correspondent kevin cirilli. manchester.ack to the reason we are here is because of the primary. the president seems to be soaking up a lot of oxygen. here are our bloomberg political

contributors, rick davis. rick has been on several political campaigns and has won every single time in new hampshire, including he was running john mccain's campaign. we also have jeannie say no with us. ino with us.a democrats have been trying to get things going, but the president will not let them. trump is very good at getting in the news cycle. not only did he just stage the little presser he did, but he will be in manchester, new hampshire tonight at a big rally right in the center of all of the activity democrats are doing. just across the street from where we are. some people have been gathering all night long. this raises the question of can any of the democratic candidates raise that kind of enthusiasm?

we did not see it in iowa. jeanne: in iowa the president had a rally 7000 people attended. we are talking that democrats are dispersed, they were not generating a big crowd. it is raining in manchester and our people camped out all night to see the president. it is quite a scene. he is a master at getting free media. his goal is to knock the president off the local and national news as we get into tomorrow's important primary. david: just a passion question. is bernie sanders the only one generating anything approaching that passion? rick: you have to put it in context. donald trump will have 10,000 people at his event. a big event here for the democrats is a couple thousand. we saw a relatively flat turnout in iowa. there was no talk coming out of iowa about anybody's passion. even bernie sanders got beat by somebody else, pete buttigieg,

who nobody expected that to happen in iowa. we can say that now that the results are in. that is the biggest question in this new hampshire primary. are we going to get a big turnout for the primary? jeanne zaino and rick davis will be with us along with the commissioner of the new hampshire business and economic counsel. he will talk about the state of the economy in new hampshire. maybe one of the big issues in the primary tomorrow. this is "balance of power" on bloomberg television and radio. ♪ hi! we're glad you came in, what's on your mind?

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that we can't do, but come in and see what we can do. we're here to make life simple. easy. awesome. ask. shop. discover. at your local xfinity store today. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. and save even more when you say "bring my own phone" into your voice remote. that's simple, easy, awesome. click, call or visit a store today. david: from manchester, new hampshire this is "balance of power" on bloomberg television and radio. i'm david westin. time for first word news with mark crumpton in new york. polls show bernie sanders

with the leader day before the democratic residential primary in new hampshire. pete buttigieg is second. senator amy klobuchar is third. tracking polls show that third of the voters could still change their mind. in ireland, the election has upended the traditional two-party power structure. the former political wing of the ira will feature in coalition talks. it's on track for second place in the number of seats won. keptwo major parties have the party out of the government in the past. british prime minister boris johnson plans to increase spending on infrastructure. he is following through on campaign pledges he made before december selection. spending will focus on northern england. his plan includes money for 5g

wireless networks in rural areas. he also plan to spend more on mass transit. a historic night at the oscars. south korean movie parasite became the first four-legged movie to win the academy award for best actor. picture,on for best director, international movie. no female directors were nominated this year. one study found women make up half of the u.s. population but only 16% of hollywood writers, and 8% of directors. global news 24 hours a day, on-air, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david, back to you in new hampshire. david: thanks.

elections usually come down to the economy, but is that going to be the case this year? we welcome taylor caswell, the commissioner of the new hampshire department of business and economic affairs. thank you for being here. tonk you for welcoming of us new hampshire. give us a snapshot over the new hampshire economy is right now. seeing greate numbers with the labor force, which is key for new hampshire, providing jobs for the workforce that is here. we are seeing a little bit of a decline in terms of the traditional demographics. we have been working hard to be able to develop pipelines of people and workforce for the growth oriented businesses we are seeing come here. rick: fantastic to be back in new hampshire. granite stators have always had a pretty high median income. is that sustaining itself amongst the expansion?

taylor: it is, and it's growing. our labor force per dissipation numbers keep going up, even though unemployment remains rather static, around 2.5%. we have been under 3% since 2015. if you assume that is full employment, we are looking at a continued growth in the ability to provide that workforce for our employers here in new hampshire. the things the president has talked about is this blue-collar boom he has talked about. one of the things that we here in new hampshire and other states is it's been uneven. the poorest cities are still not feeling that boom. is that something that you see here on the ground? taylor: i think it is. maybe not at the scale as other states because we are a pretty small state. manchester to burlington isn't that far. there has been a traditional sense of the middletown's of the

north country, the old forest mills, paper mills, and that is still in the memory of a lot of people. as we transition into a much more advanced, technologically-based economy, that's a trichet -- transition that is a little hard in some some parts of the state. david: what issues are driving people to the polls? what motivates them? climate change, health care, housing is another one. any place where you have a stronger economy, you have tighteneness in the housing market. vacancy rate75% for apartments statewide. it is affecting everything. when i was talking before about how we focus on the human aspect of providing that part of the

capital equation for our businesses, housing comes to the forefront pretty quickly. rick: picking up on the climate issue, we have seen warmer winters that we have had in the past. i know winter sports is a big driver -- taylor: it is february and it's raining. rick: hasn't had a big impact on our economy? taylor: primarily where we see it is in our ski areas. it's been an ok year in terms of skiing. but there is increase in technology, the ability to make snow, but there's also an adaptation occurring. ski areas that were traditionally dark during the summer months are now turning into places what zip lines, mountain biking, hiking, using the infrastructure that is there year-round in order to generate value for those immunities and businesses. jeanne: we hear an awful lot about this, that particularly young people are moving to other

areas, often for job opportunities. what are you doing in new hampshire to keep them here? is the federal government doing helping you in that endeavor? taylor: we are trying to do that and keep them here. using a strong hospitality and resort marketplace to be that entry drug for people. a lot of people that come spend a couple of days, experiencing what life is like in new hampshire. while they are here, they will see we have a strong economy, great jobs, plenty of open jobs. we are within an hour or less to boston. that is a big part of how we can continue to grow, where we see other states like her mom and made going in the other direction. david: has that proximity to boston driven tech here? taylor: yes.

we are about one hour away. traffic is pretty tough in the boston area. but the companies that we see coming into southern new hampshire, a lot of times they have a base in boston or to expand.but need there is no affordable room in the boston metro area, so they are driving up the ways a little bit to find a state with no capital gains tax, and we do providing that access to workforce, a progrowth economy. rick: demographically, how has that worked out? you talk about an aging here,tion, low tax base attraction to people on your borders. it is a small state, so a little bit goes a long way. around 1.4 million people here. over the last five years, have population levels increased? migrationr net

numbers are pretty high compared to other northeastern states. if you look at the net millennial migration by population, new hampshire is in the top 10 right now. strong case of combining those things i was talking about, lifestyle, access to a strong economy, access to good jobs. if you want to start a business in one of our rural communities and left the lifestyle of the mount washington valley, which is a pretty good lifestyle, this is a great place to do that, find the investment, find the workforce, the supportive communities. level oflk about the engagement with people of new hampshire in this primary. taylor: probably as good as i have ever seen it. what people don't often talk about when they talk about the primary, it is so much a part of our ethos. we have 400 state representatives.

you and your friends get together, and you can get a seat in congress. that filters through our entire system, when you are talking about planning for a zoning board, or real engagement. it is part of what we are here. that is a real value to the national process. jeanne: i grew up nearby in connecticut. we climbed mount washington many times, it's gorgeous. if you could talk to these candidates, what would you say, particularly democrats, as it pertains to the economy, that you're not hearing out there? taylor: there is so much going on in our economy. period,n a transitional like the rest of the world, transitioning from an industrial age to a digital age. that is a unique aspect, that we are finding a lot of different ways to struggle with, and how you weave together all of the different pieces of what makes

an economy strong into something that reflects the 21st century. that is something that is front of mind for us. that, tocusing on provide an ecosystem for businesses to be highly successful. this is a new age, practice of economic development. we are trying to stay ahead of the game in new hampshire. we have the tools. we would like to see the federal government help us to do that. david: that is taylor caswell. take you for being here. rick davis and jeanne zaino will be staying with us. coming up, one more day. democratic candidates are crisscrossing the state in a final push before the primary. will it be as contentious as past contests? we will be asking christopher galdieri. this is "balance of power" on bloomberg television and radio. ♪ ♪

david: this is "balance of power" on bloomberg television and radio. i'm david westin. we are in manchester, new hampshire where we are reporting on the new hampshire primary. less than 24 hours from now, they will be going to the polls. bernie sanders is likely to win but we will find out. polls have been wrong in new hampshire before. to talk about what he expects, we welcome chris galdieri. also with us are jeanne zaino and rick davis. presser, good to have you here. i was on abc news when we got it wrong in 2008.

we thought obama was going to run away with it but hillary clinton squeaked out a win. the polls have been wrong before. be wrong, especially catching latebreaking developments. if somebody has a great debate, a big gaffe the day before the election, those are things that are not reflected in the polling's. had john mccain in .he league consistently the whole primary was a little bit earlier than it is now. we came out of the holidays and we had this great outcome, 19-point when out of nowhere. that thet the momentum winner of the new hampshire primary can get. it changed the dynamic for us in south carolina. what do you think will happen this time? chris: it depends on who wins and by how much. if bernie sanders wins, which we expect, if the wins by 10

points, that would be great for his campaign. he has been saying that his movement is the future of the democratic party. but in iowa, he was the connect with pete buttigieg. on the other hand, if he is tied with buttigieg again, that doesn't do him as much good as otherwise. if somebody like klobuchar or close third, that changes our understanding of the race. jeanne: we always hear about new hampshire, it is not a closed primary, not an open primary. can you explain that? chris: if you belong to a party, you vote in that party's primary. if you are an undeclared voter, you can go to a polling place tuesday morning and ask for a democratic or republican ballot. this year, there is not much of a republican contest. theoretically, those undecided

voters can vote in democratic contests. seen a lote you ever of people go to the other side and upend? there can be that huge number of undeclared that you have. those 2000 is a year that undeclared voters put a pretty big role in the primary. this year, you are seeing a lot of the more moderate candidates in the democratic field, mayor pete, amy klobuchar, trying to get those independent-minded undeclared voters to vote for them in the primary. .avid: you mentioned moderates you didn't mention vice president biden. was that on purpose? chris: only so much time. ,avid: one of the questions is he was once the front runner but is now struggling. chris: he has had a tough time in iowa, placed in fourth or fifth place.

he had hoped to do better than that. tried to do a bit of a reset on his campaign, trying to figure out a new message. he had a pretty good debate friday night at saint on some. -- anselm. the question is whether he did enough. , youave other moderates have mayor pete, elizabeth warren trying to stake a claim on the race. it is really tough for biden going forward. rick: these independents can important when they move en masse. is there any particular issue that you are seeing within the independents that may drive them toward a certain candidate? chris: i don't know that there is one in particular this year. it's more a question of, you have these undeclared voters,

many of them are not trump voters. folks that would have voted for a john mccain in past primaries, but they are not ready to get on board with bernie sanders or elizabeth warren. for them, trying to boost one of the more centrist options in the democratic primary is pretty appealing to them. what i don't know if any one of them has a particular claim to those voters. jeanne: one thing we didn't talk about out of iowa was the number of young voters. the millennial voting block is now the biggest in history. are you seeing that with the young people here in new hampshire? at least on the democratic side, but on the republican side as well, that they are turning out in larger numbers than they used to? chris: i don't know. getting young people to turn out is just about the hardest thing a campaign can do. new hampshire voting laws at the moment are a bit confusing for an 18 to 21-year-old who has

never cast a ballot before. but they do have large numbers. even a small increase could really benefit the candidate they favor, which in this case is probably sanders. david: you have said the polls can be wrong because of latebreaking news. crying in that diner in 2008 was important. do you see any developments that may move things one way or another for the candidates? chris: there was a latebreaking negative ad campaign from the biden campaign against pete buttigieg. attack that particular may not be a good fit with the image people have of joe biden. i'm not sure that is going to help him. i think there could be a boomerang sort of a backlash from that. david: you agree with that, rick? you say politics is a contact sport. rick: negative advertising

works. the reason that people use it is to try to dig out of a hole. this campaign has been pretty much void of any negativity. so not only is it a negative ad, but it is also one of the first ones. people in new hampshire are pretty sophisticated. it is a very activist population. they will probably look at this and decide for themselves whether they think biden has overstepped. we have had instances in new hampshire where ads have reacted negatively to the campaign that put it up. there is so little information ,bout pete buttigieg out there they may see this as informative. vice president versus mayer is a legitimate contrast. right now for biden, this is probably the only option. jeanne: what are you predicting in terms of elizabeth warren? she has a lot at stake here.

how do the new hampshire voters feel about elizabeth warren? spent a lot of time in the state, not just as a presidential candidate, but working for jeanne shaheen, hillary in 2016. she has a large organization here. her rallies this week have been very large, energetic. she may be poised for a surprisingly strong finish. here, thanks for being chris galdieri. willdavis and jeanne zaino be sticking with us. live coverage of the new hampshire primary results starting at 7:00 p.m. eastern time. this is "balance of power" on bloomberg television and radio. ♪

david: this is "balance of power" on bloomberg television and radio. i'm david westin.

reporting from manchester, new hampshire. it is time for our stock of the hour. amazon is trading at a new record high, up 2%, as the company seeks to challenge president trump in a lawsuit over a pentagon cloud contract. kailey leinz joins us. kailey: this was the jedi cloud contract from the pentagon, worth $10 billion over 10 years. at the end of this, amazon and microsoft were the ones to win the contract. it was ultimately awarded to microsoft in october. suit,ember, amazon filed alleging the department of justice did not really judgethe contracts because of trump''s views of jeff bezos. he views him as an enemy, the owner of the washington post. there has been a lot of contention between the president and jeff bezos.

amazon says that is what is at play. the court filing shows that amazon is seeking to depose the president as well as officials in the pentagon. president trump is directly implicated by jim mattis' former speechwriter who , saying, make sure this thing does not go to amazon. is there a chance this could be overturned? kailey: that is a fair point. given the lucrative scale of this contract, when you look at how this business is actually performing, it is still doing well. they were an early mover in this space, and they are a dominant player, about 40% market share. their largest competitor is microsoft, becoming more of a competitive business. what that means longer-term in their ability to oppose the

president or when the lawsuit is an open question. you can see why this is important to amazon considering aws is responsible for the majority of its operating income. many thanks to kailey leinz, reporting from new york. coming up, balance of power continues on television and radio from manchester. tomorrow night, catch our coverage of the new hampshire primary beginning at 7:00. we will see if bernie sanders can follow through on his promise of winning here, or whether they will be another surprise for us. this is "balance of power" on bloomberg television and radio. ♪

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hampshire, to our audience worldwide, i'm david westin. welcome to balance of power. in manchester, new hampshire for the primary coming up tomorrow night. the polls are showing bernie sanders has a lead, although pete buttigieg is not far behind. the big question is where joe biden comes in. panel jeanneck our zaino and rick davis. stone court capital. set the stage for us. jeanne: they have a motto in new hampshire, always first, always right. we still don't have solid results out of iowa. if they go with bernie sanders or pete buttigieg, doesn't knock somebody like elizabeth warren out of this?

the big question is who comes in third. if it is not joe biden, how much will he be damaged by that? a lot of questions about whether they follow iowa, and how they come in third and fourth year. you have to feel sorry for the democratic candidates because they are coming here and then the president is coming in with another rally. frankly, his presence in this part of town is significantly bigger than the democrats running for the primary that will be 30 hours from now. he is not going to give the democrats a minute of rest. he is going to try and win new hampshire. he barely lost it last time around. his targets may move around over time but you know they will spend time and money here. jeanne: he feels the economy is so strong, he will take responsibility for that. we will hear a lot of that at

his rally tonight. look what i've delivered to new hampshire. now you have to come back for me in 2020, in a way that you did it in 2016. david: we heard in the first hour, the economy is really good here. how can the democrats get any attention at all, the matter which candidate it is? rick: they have been successful statewide. the governor's race has always been tough for the republicans. they have an ability to win elections here, and they did last time around with hillary clinton, who was not very appealing and other states that donald trump won. he have a decent ground game here. ifwill be interesting to see they can nominate a candidate good enough for new hampshire. it is hard to see bernie sanders being the candidate of choice by new hampshire but he is certainly leading the polls now. david: we talk about the

candidates starting to attack one another, nobody is going after bernie sanders. jeanne: it is almost like they have ceded the state to bernie sanders. we heard joe in the debate friday night -- he said, didn't do so well in iowa, probably will not in new hampshire. a stunning admittance for him. i think they feel like they are vying for the second and third place to see who will come after sanders. by over 20 points in 2016. he will not win by that much tonight, but people feel like the energy is on his side. david: energy and momentum raises questions about voter turnout. the turnout in iowa was expected to be strong but it was not. rick: you can argue it was a little bit weak. you can see the secretary of state here starting to ratchet down his projections of turnout. 500,000, it was around

and now it's about 400,000. i don't know if that's an indication that they don't think that they'll have the turn up. part of a unique thing is play.r the independents if they participate in a democratic primary, they will get a boost in the turnout numbers. there isd to imagine going to be a sizable turnabout after what we saw in iowa. david: rick davis and jeanne zaino will be sticking with us. let's learn more about the history of the new hampshire primary and its current significance. charlie pellett filed this report. >> we are going on to new hampshire victorious. hampshire likew to say, i will pick scorn, we pick presidents. the numbers would seem to back up that claim. in 14 of the last 17 new hampshire primaries, the winners went on to be elected president.

in the other three primaries, the second-place finisher ended up in the white house. some democrats say this year, maybe the results could come with an asterisk. bernie sanders is from vermont, elizabeth warren is from massachusetts. joe biden's allies point out that candidates from neighboring states have all done well in new hampshire. biden is downplaying expectations while going after sanders, a self-described socialist. >> we are already seeing what donald trump is going to do with that. >> as of the middle of last month, sanders had spent $3.6 million on ads in new hampshire. warren and body were not even close. perhaps he is counting on the long-held belief that in new hampshire, you win votes in person, not on the air. as a complication that the front runners had not counted on a

week ago, pete buttigieg is now being mentioned with them. >> we are calling out to everybody. aggressive's, moderates, independents, and forward thinking republicans to bring about that better day. almost 40% of democrats are likely to be independents. four years ago, three for something what to bernie sanders. david: we will have more on new hampshire in a moment. first, let's get a check on where the markets are. kailey leinz is in new york. kailey: we are looking at a mixed risk picture as investors assess the potential impact of the coronavirus. some buying coming into the market. the s&p 500 up by a quarter percent. the tech heavy nasdaq is up by .6%. in other areas, you see pressure. futures down 1.5% today.

copper is down as well. bearingmodity complex the brunt of these growth concerns from the coronavirus. leadership.tech it's been the story for quite some time. the s&p 500 reached a fresh record last week. weighted, it has been lacking for some time. the underperformance really has expanded. it continues to be just a few stocks leading the charge here. day,r stocks moving on the i want to start with movers in the retail space. surging a record 53%, after simons agreed to buy it. you also have lyft up 7% on a upgrade on its fundamental ridesharing business looking sound. potentially an attractive pure autonomousfor an

vehicle developer. amd chips are set to be chips.ing pg&e has been mired in his bankruptcy drama for quite some time. the stock at its highest since august of 2019. there is talk that gavin newsom want to take the company private, should the bankruptcy not work out by june 30. david: thank you so much. let's go to mark crumpton now for bloomberg first word news. mark: chinese president xi jinping has made his first appearance since the death of the dr. who sounded the alarm about the coronavirus. xi was seen wearing a mask and having his temperature taken. the global death toll is now at least 910.

a number of confirmed cases now exceeds 40,000. today, tributes and messages of condolencescondolences carpet td outside a shopping mall in northern thailand where 29 people were gunned down over the weekend. dozens of others were injured, some seriously. it is the country's worst ever mass shooting. the gunman, a soldier, was eventually killed by security forces. police say at least three people were shot in a walmart in eastern arkansas early this morning. it happened 85 miles east of little rock. the extent of the injuries is unknown at this time and is not yet been determined whether the suspect has been detained. authorities are working to secure the scene. trumprk is suing the administration over its plans to bar state residents from enrolling in the federal government trusted traveler programs like global entry.

the lawsuit against the department of homeland security was filed today in manhattan by the new york attorney general. and governorjames cuomo, trump is seeking to punish the state for its policies. global news 24 hours a day, on-air, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. back to you in manchester, new hampshire. david: coming up tomorrow, special coverage of the new hampshire primary results. covered starts at 7:00 eastern time. this is balance of power on bloomberg television and radio.

david: this is "balance of power" on bloomberg television and radio. i'm david westin. we are here in new hampshire for the new hampshire primaries. one thing on the mind of voters is trade. her, formerow is president of the u.s. export import bank. still with us are jeanne zaino and rick davis. good to have you here, like iowa. you don'tou said think about trade so much, but it is quite important. one of the new hampshire? fred: it is quite important. a lot of trade not somewhat with china, more with canada, germany. it's an important trade state.

when i chaired the export import bank, we did a lot of work here. david: have the disputes with china, canada heard any people here in new hampshire, like the farmers in the midwest being hurt because of these disputes? fred: i met with some business people over the weekend. the move away from fossil fuels has certainly hurt some businesses. a company that we worked with, boyle energy, they would to the power plants. with the move further away from fossil fuels, that has hurt their business. some are having to adjust, whether it is with china or fossil fuels, climate change, but that is the nature of being in business. rick: we are hearing more run the president's budget he submitted. past month, we have heard about after brexit, we are going to do a bilateral arrangement with great britain.

now it seems the president has taken on the eu, wants to renegotiate a treaty with them. do you have any insight into that? this president likes to pick fights. it is unusual to pick fights with your allies. we have a good relationship with the eu. we tried to do the transatlantic trade partnership. you can never use the phrase free trade in a trade agreement again, because that is apparently a four letter word. we have a good relationship with europe. i will say, the europeans are much more protectionist about their companies. sometimes, they think it is a little uneven dealing with the united states. i expected outng of the state of the union was the president talking about the phase to deal with china. we didn't hear about that. do you have any insights on

where we are heading with that, is that playing into voters minds? clear if it is going to happen or when. of course, the president will say it will happen after i'm really it. it is like that reality tv, stay tuned for next week. that is one of the techniques going on. also thrownrus has things off in terms of what china will be focused on. shows,ng about the virus we are all interconnected. whether it is the environment, trade, health. the idea of going about it alone is not a very effective strategy, whether it has to do with trade, health, or the environment. david: depending on who comes out on top tomorrow, is there a larger issue about why anyone would vote for them over president trump?

the economy here is doing well, unemployment is low. what is the argument democrats have? china, everything over he got a deal done, the world did not blow up. fred: frankly, the state of the union was a clear kickoff of the campaign. i am a clear democrat but he makes a case that will be hard to rebut. the economy is doing well. frankly, his popularity would be higher if you did less reading dis-liting and is not as kable as he is. let's add one thing. we were creating more jobs in the last few years of president obama in the first two years of president trump. this is a continuation of that recovery. that, whatwing along are the risks to the economy now?

we have heard about what is positive. when you see this kind of growth , where do you see stumbling blocks in the future? fred: there is always the unknown, like the coronavirus. sars years ago. things like that can throw off projections in a major way. one thing that is always challenging is uncertainty. people don't invest when the outcome is uncertain. that is one of the things that brought agreement with china. all the uncertainty of the trade war made it harder for china to do business, seek investment. that was a reason for them to want to put this to bed. have been hearing bernie sanders on the campaign trail trying to fight this argument about socialism. part of what he's been talking about is that the president is a corporate socialist. the you think that is a perspective lane for bernie sanders to go down, does that resonate with voters? fred: i don't think it does.

i went to all the rallies the last few days. jeanne: lucky you. fred: somehow, greed and corruption are somehow all of our ills, and if we got rid of them, everything would be fine. first of all, hard to do. politically and emotionally charged word, greed. like ourevel, we would fair share and have a better life. is that greedy? certainly, one thing about president trump, it is much more about status, in terms of wanting to put a finger on the scale. what companies are exempt from tariffs, what products are back from china. that is very much at all from republican thinking, from a free market economy that we have flourished under. david: one less thing on the coronavirus. trade is good in most

cases for a lot of people. that it willsk affect trade over the long-term, not just in the first three months, but globalization overall? fred: when i look at the coronavirus, i think a little bit about chernobyl, the impact it had on the soviet union, and d theme ways, weakene soviet union. china is not quite there but this is a huge risk internally, in terms of a government not protecting those people, and going after those that discovered the virus. that poor doctor died a few days ago. there are some longer-term risks to china, and frankly, that is a risk to the global economy. china has been one of the engines to the global economy. david: many things to the former

president of the u.s. export import bank, fred hochberg. ahead, even here in new hampshire, the spread of the coronavirus is big news. we get the latest from our correspondent in hong kong. this is "balance of power" on bloomberg television and radio. ♪

david: this is "balance of power" on bloomberg television and radio. i'm david westin. reporting from manchester, new hampshire. let's get the latest on the coronavirus, which is a global story. climbed tooll has 910 people. xi jinping appeared in public for the first time since the physician,prominent wearing a mask and having his temperature taken. joining us now is sophie.

give us the latest in china. >> there was little rush-hour traffic, as thousands returned to work after the extended holidays. as you noted, president xi jinping making an appearance under scrutiny given the pressures to contain the outbreak. we have businesses and factories reopening. we are seeing plenty of people still opting to stay at home, so that has seen foxconn resuming some of its operations. a number of workers not returning from their break, so the company is assessing how to contain the potential for exposure as well as manage the disruptions. the chinese government looking to soften the impact, spending $10 billion. they say it is still too early to call this the peak of the outbreak. they are monitoring 10 provinces.

they are seeing a pickup in some places. david: we have the situation and mainland china, but also warnings about what is happening outside china. with athat situation conference in singapore that may have led to more cases. how much of a concern is that, what is happening outside of china? is warning about the potential transmission. when it comes to that singapore conference, where we saw several said it is too early to call that a super-spreader fears that. but authorities are on high alert. singapore has reported about 25 cases. we are seeing the u.k. as well raising the alarm here, saying the virus is an imminent threat, heightening its rules as the total number of cases increases to eight. the uae also confirming a

case. david: a lot to monitor. thank you very much, sophie kamaruddin. focust, we will turn the back here to new hampshire and its primary. we will look at what pocketbook issues will play a role in tomorrow's election. we will speak to somebody who understands the new hampshire economy and business, and how business is reacting to this economy. this is "balance of power" on bloomberg television and radio. ♪

david: from manchester, new hampshire, this is "balance of power" on bloomberg television and radio. i'm david westin.

word news,rg first we go to mark crumpton in new york. president trump's new 4.8 shall in dollars election-year budget calls for spending billions more on defense. it would also cut social programs while adding a trillion to the debt. the fiscal plan was unveiled today. the president's budget is more of a political document. congress has to appropriate the money and lawmakers are not likely to finish work on the budget until after the election. a leader of german chancellor angela merkel's union confirmed that she will step down as the party leader and not seek higher office, creating controversy over germany's political future. i will not run as a chancellor candidate. just as i have announced this, i am leading the process to come to a chancellor candidate for the cdu, the union. remainstressed she would

in the role as defense minister in merkel's cabinet. merkel says she will cooperate with her during the transition. in his first tour in his first foreign trip of 2020, pope francis will visit the island of malta. the trip is scheduled for the end of may. the maltese arch visit says he expects the visit to highlight the need for multiple to welcome migrants despite its small size. the pontiff is also planning trips to indonesia and east timor in the second half of 2020. global news 24 hours a day, on-air, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david, back to you in manchester. thank you. candidates are making their last pitches to voters in new hampshire ahead of the primary tomorrow night.

joining us to discuss what voters want out of their economy .s dr. alan beaulieu also with us are rick davis and jeanne zaino. good to have you here. if you are a new hampshire businessman or woman, what are you looking for out of the economy? you do every day, certainty. if we know what the rules are, if we know what the opportunities are in new hampshire, across the country, we take maximum advantage of them to the benefit of everybody. david: if you follow president trump's twitter account, there are a fair number of unknowns, but the economy is doing pretty well here in new hampshire. the economy is doing pretty well, but it is slowing down. you look at the trajectory of gdp, the number of dollars is getting larger, but the right has been bleeding since 2018.

on a deflated basis, the rate is the lowest in about 31 months. the economy has been slowly unwinding, just a little bit. industrial production, which is manufacturing, is in decline. when i hear people say the economy is booming, i wonder what metric they are looking at. the usually quote the stock market, which is not the economy. rick: you just mentioned the manufacturing offsets. new hampshire used to be known as the textile capital of the region, a lot of mills shutting down, less employment. yet, we have heard there has been an increase in areas like tech. but those are two different kinds of jobs. how has the state managed to offset the losses in manufacturing, and what have you done with those workers employed in the mills? alan: the ones you are talking about either aged out or left a long time ago. exportedight, we have

a lot into transportation, computers, electronics, chemicals. the old textile mills are gone. now they are just like office space. right now we are in an old mill. jeanne: you say uncertainty is the enemy of business. what uncertainty are small business owners facing at this point? are they voting on that uncertainty in your estimation, or are those two things separate in your mind? alan: i don't know how they are voting, we are an apolitical firm, we don't tend to ask how they are voting. but in the past it has slowed down the process. not the hiring, but investment. investments have slowed down dramatically. a lot of that is because of what will happen, what is coming next. leading indicators say it will all pick up speed soon.

indicator rateg of change-based company. picking up capex speed in the second half of the year. once that uncertainty goes away, people will start to feel better about the future, orders are picking up, and they start spending more themselves, which helps to pick up the economy in general. that b2b is 18% of the gdp. david: one of the things i have heard is some ceos are seeing the stock markets are up, asset values are up, but the growth is not there, and that makes me nervous. until i can figure out how those two things are squared, i don't want to make a big investment. alan: it is funny that you mention that, we have been tracking that as well. corporate profits are up, but a lot of buybacks going on, but that is not a firm ground on which to build a stock market

rally that is sustainable. when will come down is not my call. if i could time the market, i would probably be doing something else. acquisitions, you are right, they have been picking up. the multiples are up probably more than they should be, foruse money is looking something to do. sellers are able to get their price. rick: changing pace a little bit, granite stators have avoided what a lot of people have been affected by, the ipo at crisis. how has the opioid crisis affected productivity and growth here in new hampshire? alan: it has made it tough on the labor market, which impacts the ability on companies to grow. it's been an extremely serious epidemic here in new hampshire. it is lessening slowly through time, we hope. a lot of work being done on it. but it is a cultural crisis that will not dissipate easily.

the more that we become adjusted to it, the more we are tracked a workforce in new hampshire, which is a bigger problem, in my opinion, the better off we will be. we are light on millennials and gen z. motherheavy on boomers we are leaving the workforce, not entering. that will make it tough on manufacturers, distributors, businesses. thene: we hear a lot about good on appointment numbers in new hampshire and across the country. we always hear that is the be-all, end-all about how people should think about the economy. you are talking about a potential slowdown coming down the pike. how would you square those two things? alan: looking at the unemployment rate is the same as looking in your rearview mirror in your car and thinking you can see the next turn. it is a perfect lagging indicator.

it has nothing to do with tomorrow, only what has been. when you look at business itrimism, we have our own leading indicator that looks months into the future. that is what we are looking at. the slowdown will be here, it will and in the next quarter. whoever is elected will inherit a strong economy. willer is elected take credit for it, but we will all know that it started before hand. rick: much like president trump benefited a growing economy, and . beaulieu, thank you. rick davis and the jeanne zaino will be staying with us. this is "balance of power" on bloomberg television and radio. ♪

david: this is "balance of power" on bloomberg television and radio. i'm david westin. reporting from manchester, new hampshire, where we are for the primaries tomorrow. we are dark -- back with dr. alan beaulieu. also with us are rick davis and jeanne zaino. you are interested on a dislocation, who may be left behind. democratic candidates are all over the state today making their case, and they say not everybody has benefited from the boom over the last five years. how has that impacted new hampshire? , again, as most states. we are not so big. those small towns i used to have an industry, where the industry is no longer there, the factory is gone, distribution center is

gone, but they are feeling left behind and left out. in the old days, you would move to are the jobs are, but in our culture now, you expect the jobs to come to you. that is why they feel disaffected. they don't want to be a part, they don't want to be part, and it is viewed as a gift. in the you mention previous segment that new hampshire is an aging population, a lot of boomers. millennials and generation z is either moving out or not coming to the state. what is the new hampshire government doing what cut the federal government do to change that? i'm from new york, and it's a problem there as well in upstate new york as young people move and look for opportunities. alan: i don't think there's anything the federal government can or should do. i'm a business economist. business like ours, we have to

attract millennials. 70% of our workforce are millennials. we like to attract people that like the white -- like the lifestyle but we paid boston wages. we attract the folks that like outdoors, skiing, hunting, that sort of thing, or don't mind driving an hour to the sox game. jeanne: patriots. alan: those folks, too. the business has to attract them. it has to show a wage scale and lifestyle. else, we, like anybody had to be able to show personal development, we care about what is going on in the world, and that is how you attract business. it is not a government issue but a business issue. david: one of the things the president emphasized in the state of the union was how lower wages are going up faster, particularly focusing on african-americans and women.

are you experiencing that in a state of new hampshire? alan: i don't know. when i was listening to the speech, i actually made a note, check this out. it struck me as worth checking out. david: i wonder if that is happening here. alan: i don't know. rick: what about wage rates among the blue-collar workers? the president talks about the blue-collar boom. are you seeing them get a ketchup in the economy? alan: my twin brother and i are the principles of itr economics. if you want to know what he looks like. you don't. [laughter] wages adjusted for inflation are doing well across a whole lot of industries. i just dove into welders, carpenters, plumbers, and their wages are doing well. in most states, you can make a nice living, you will not have to borrow $100,000 to go to

school, you can put money in your 401(k), retire nicely. it's a good place to be. one of our problems in business is we don't promote the trades enough. we talk about college instead of education, and is a difference between the two. jeanne: you said you don't expect anything out of the federal government, state government, but what about issues like education, retraining. doesn't the government have a role in helping us adjust to this new economy? should that be totally up to corporations? alan: you are right. government has a place there. i used to teach, it's a great space to be in. but businesses need to be involved in the process. helping with the curriculum, the output, getting the workers they need, as opposed to the workers at the government thinks they need. it is actually a good relationship that produces a good workforce. david: to what extent is the

economy dependent on integrated exports, imports, also services? alan: it is integrated as the nation is. is made up ofp the export of goods. nationally, it is 8%. so it is very important what goes on in the world, we are very integrated in a high-tech way. what happens in china makes a difference here. what happened in canada, mexico is very important here. they are bigger trading partners than china, so it matters. that was a trade deal that certainly helped. domesticving the

content of automobiles would be good for canada, major trading partner. what helps them is good for our economy. it was a good deal. most companies that do business will benefit. in all cases, there always winners and losers, just let exit. some win, some lose. i cannot buy from china, can i buy from poland? if i source from poland, i don't have to worry about chinese tariffs. it is a winners and losers world. david: thank you for being with us. a president and principal of itr economics. along with his twin brother we have learned. shares of cruise line companies continue to fall as fears of the coronavirus continue to grow. this is "balance of power" on bloomberg television and radio. ♪

david: this is "balance of power" on bloomberg television and radio. i'm david westin. here for the primary tomorrow. right now, it is time for the stock of the hour. norwegian cruise lines. an analyst at nomura says conditions could worsen with the coronavirus. we have more from new york. not sure how much worse they can get, but you will tell us. >> this is the second day of declines for norwegian. anyone they decided holding a chinese, hong kong, or macau passport would not be a will to go on their cruises. anyone who has been to a chinese airport in the past 30 days, even if just as a transit passenger, they will not be able to go on cruises either. it is a matter of the restrictions being ratcheted up in an effort to try and avoid the kind of issues we have seen

with the ship that was docked in new jersey, you had four passengers taken off and brought to the hospital. that was anthem of the seas. royal caribbean, there's an issue in japan, a carnival cruise line. 135 people affected by the coronavirus. they are trying to avoid getting into that same position. you can imagine what china made to the cruise line business. substantial. beyond the u.s. and the rest of the world, it is definitely a key area. you can see the follow-through on these stocks. backparticular table looks two weeks. the last two days, you have seen most of those declines to lace. it is a little bit of a ketchup in a sense for norwegian. its shares have not been hit as hard, at least this year, as those of royal caribbean and carnival.

what we are seeing now with the greater restrictions, it is definitely having an effect on the stock. david: you have to feel bad for holders of the stock. you cannot fear nearly as bad for those people stuck on that ship. that sounds pretty bad. many thanks today wilson. a few final thoughts from jeanne zaino and rick davis before we turn to the primaries tomorrow. rick, you have run these campaigns, you have won everyone that you have done here in the state. is it big ten, are people going to vote the way they are going to vote? rick: you are trying to stage a couple of good rallies, town halls to punch out or get out the vote operation, you have been training your staff to know where to get the vote out. really make your final arguments. why am i the month that you should be supported tomorrow morning. there is really not much left. uptight,here you get

nervous. you cannot buy new ads, deploy new resources. you are left with the campaign you came with. david: there is at stake for the democratic candidates. i wonder how much is at stake for new hampshire? we saw iowa stumble, and it could affect their future role in a primary nomination process. what about new hampshire? we hear so many of the successful candidates have come number one or two, but is there a chance that may not happen this time? jeanne: there is a chance. we have seen several people say maybe new hampshire should not be the first to vote. it has been similar to iowa. there is a law in place. we have a secretary of state also in office. it is a precarious time for the new hampshire primary, just like iowa. of course, it is not a caucus. hopefully, we will have results tomorrow night.

but they do want to get it right. that is their motto, we are first and we are right. we will wait to see if that holds true. david: doesn't make sense to have a state that is 1.30 5 million people, a pretty small, homogeneous state, does it make sense to give them an outsized say on who the nominee should be? rick: you have to start somewhere. that tradition has been to go to places where you can create retail political success. new york, california, these dates are so big, you will not see the candidates interacting with voters. new hampshire prides itself well on being able to pick the right winner. they run you through your paces. there are all sorts of wonderful jokes. john mccain walk into a barbershop during the election and he said, hi, i'm john mccain. they said, we know, we were laughing about that this morning. they are tough year.

somebody has to kick the tires. david: what do you tell your students about the way the process works? some americans will say it doesn't make sense to us. does it make sense over time? jeanne: in this round, it doesn't make sense for the democratic party to do it this way. they have invested and an ornament -- an inordinate amount of time and money in states that will not decide in november. that is a big problem for the democratic party, let alone for democracy as a whole. i do think there are a lot of challenges with the way the parties run the nomination process. good point, how much the democratic party has at stake. a lot of controversies. i was stumbled. how much does the democratic party have to lose here? an important state, even though it is not always targeted, it may be this year.

that is why donald trump is showing up for a big rally tonight. he wants to claim his stake for the election. the demographics don't fit in these states for the democrats. has beenthe party that more successful reaching out to minorities, not rural white men. these are tuesdays that don't really look like the democratic party, but they will have to find votes. whether they like it or not, there will be a vote tomorrow. david: which vice president biden keeps saying, this doesn't look like the rest of the country, so don't hold it against me. our thanks to rick davis and jeanne zaino. they will be with us tomorrow night for our special coverage of the new hampshire primary results. coverage starts at 7:00 eastern time. this is bloomberg. ♪

you would have an increase in distress debt unless the bank injected liquidity. i am mark crumpton with first word news. for theilestone coronavirus, the death toll is at 900 10, more people than died

during the sars epidemic 17 years ago. china says the number of people infected has surpassed 40,000. president trump says the united states is weathering the outbreak well. the virus, amp: lot of people think it goes away in april with the heat, as the heat comes in. typically that will go away in april. we are in great shape. we have 11 cases. many of them are in good shape now. mark: hong kong is investigating six more cases, two our extended family members of a previous patient. other cases are in the same family. polls show bernie sanders has the lead a day before the presidential primary in new hampshire. south bend, indiana mayor pete buttigieg's second in amy klobuchar's third. a third of the