Is the US Moving Toward State Capitalism?

Watch on YouTube ↗  |  January 31, 2026 at 15:01  |  12:13  |  Bloomberg Markets
Speakers
Sarah Bauerle Danzman — Associate Professor of International Studies at Indiana and Senior Fellow at the Atlantic Council's Geoeconomics Center
Steve Rattner — CEO, Willett Advisors
Michael McKee — International Economics & Policy Correspondent, Bloomberg

Summary

Bloomberg examines the Trump administration's direct equity stakes in private companies, including Intel, MP Materials, Lithium Americas, Trilogy Metals, and U.S. Steel. Guests Steven Rattner and Sarah Bauerle Danzman debate whether national security justifies state capitalism, warning about market distortions, political pressure, and corruption. Rattner highlights political retaliation risk for companies, while Danzman sees the U.S. Steel golden share as a narrower political workaround.

  • Trump administration has taken equity stakes in Intel, MP Materials, Lithium Americas, Trilogy Metals and a golden share in U.S. Steel.
  • Government says national security and supply-chain resilience justify the interventions.
  • Critics warn state ownership distorts capital allocation, competition, and innovation.
  • Rattner calls the interventions ad hoc and prefers less government ownership.
  • Danzman says Chinese oversupply may require coordinated policy responses in some sectors.
  • Rattner warns companies fear political retribution from an administration that rewards friends and punishes enemies.
  • Both guests discuss corruption risk and the need for congressional oversight.
Ideas
Sarah Bauerle Danzman Associate Professor of International Studies at Indiana and Senior Fellow at the Atlantic Council's Geoeconomics Center 4:24
U.S. Steel merger fine despite politics.
The U.S. Steel/Nippon Steel merger was politically controversial but not a genuine national security issue because steel is globally available and not a strategic commodity; the golden share is a clever political workaround that does not involve ownership and is unlikely to be exercised, so the deal should be viewed as fine.
U.S. Steel HIGH
Steve Rattner CEO, Willett Advisors 11:44
Exxon faces political retaliation risk.
The most worrisome economic risk from state capitalism is that companies fear an administration that rewards friends and punishes enemies. After Exxon's CEO called Venezuela uninvestable, President Trump threatened to exclude Exxon as a partner in Venezuela oil, illustrating company-specific political retaliation risk.
XOM MED
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This Bloomberg Markets video, published January 31, 2026, features Sarah Bauerle Danzman, Steve Rattner discussing U.S. Steel, XOM. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Sarah Bauerle Danzman, Steve Rattner  · Tickers: U.S. Steel, XOM