Still down. That is not eating into stocks. The reason why the tech heavy nasdaq is up higher is being helped out by the faang index. At this point the investors who have chosen to invest alongside the fed liquidity efforts and nuanced machinations. They are benefiting with stocks down just a little bit. Some of the stocks are helping out, the stayathome stocks, netflix reports tomorrow. Theyll be interesting to see whether the stayathome companies are benefiting from all of this. Some are making the point people might be at home, but if they are already a Netflix Subscriber it might not boost their numbers. David that is what i was going to ask. How much of this is an anticipation of some of the tech earnings . Abigail i do not they do it is in anticipating, i think it is the momentum for some of the stayathome stocks that they will benefit. One will be that the crisis will last much longer than expected and those stocks are up. Another idea could be the new normal is forever changed and i think this is certainly the case and these are the companies to benefit in the future. Either way, it will be interesting to see whether or not, how much the numbers have actually changed. Our investors have bid these stocks up to record highs in terms of the business they are doing. Tomorrow we will get an early look at that with netflix. David thank you so much to Abigail Doolittle for that report on the markets. One of the essential services so many of us are relying ons are daily deliveries from our ups driver. We turn to the man behind those deliveries, david abney, chairman and ceo of ups. Thank you for being with us. Let me ask you the most basic question. How has your business changed as a result of this crisis. What are you seeing more of and what are you seeing less of . How have the patterns changed . David a. thank you. Glad to be on your program. Industrywide, a lot more health care, ppe and critical shipments like that. I think you are seeing that across the industry. And businesses being closed with people sheltering in place, we see more ecommerce and residential deliveries across the industry. Those would be the two biggest things. The good thing about our flexible Global Logistics network is it allows us to meet s orneeds of government customers. Interesting times, that is for sure. David that is for sure for all of us. Let me pick up on what you just talked about. Flexible logistics. Youve pushed hard on automation and bring the digital age into your delivery system. Will this expedite that . Will that drive it farther and faster than you are doing already . David a. it makes us very thankful we have invested in automation and our transformation initiatives, which were all focused about speed and focused about agility. Of course with the situation we are facing now, that just stresses the importance. Even when this crisis is over, we are living in a time of great change. We think we will continue to build upon that. It is more important now than ever. I do not see that diminishing ons we get through the crisis. Guy on your business david on your business, give us a sense of what is going on business to business as opposed to business to consumer. Business to consumer is probably up somewhat. That is our experience in westchester. ,oes that affect your margins because i believe you have a higher market in on the small to mediums a highermargin on the small to mediumsized company. David a. that is because we have our Earnings Call coming up next week. I will be talking in more detail along those lines then. What i can tell you is from a Macro Economic or industry perspective, with closures there is less businesstobusiness, and with stayathome there is more business to consumer. I will have more information to share about that when i get to the Earnings Call. David fair enough. I do not want to get you in trouble with the fcc no matter what we do. Ups,your experience at does it tell you anything that would be helpful to us about restarting the economy . What do you see shutting down, what you think might come back . David a. i think we can add a lot to that story. I am proud to be a part of the Great American economic Revival Group that the president is leading. Is thing we have to offer that since we have been declared of Critical Infrastructure business, we have been operating through the heroic efforts of our ups drivers and pilots and mechanics throughout this crisis. We have learned a lot. One of the things i will be sharing with other businesses that have had to close down is what we have learned, what we say works and what we would recommend they do and not do. I do believe we would add a lot of value to that discussion. Talk about those employees. What are you doing to make them as safe as possible. What links are you going to . David a. my favorite subject is talking about our employees, especially right now. This is an Amazing Group of people that realize we are a critical business and they have stepped up to the plate like i have not seen. We have Record Service levels now, and i can go back 46 years. I cannot speak for the Company History but i can speak for a good portion of it. The first thing is all about the safety. If we want to be a critical business and if we believe we have to move Health Care Supplies around the world, then we have to take care of our. Eople these are important things. Emergency paid leave outside of our Union Contracts that we agreed to let our people know, you do not need to come to work sick. If you are feeling any problems, we can give you the paid leave our enhanced cleaning of buildings and our package cars and everything people touch, of course following cdc guidelines and sanitizing supplies and masks. You may was important, have noticed if we delivered to drivers no longer have to acquire signatures. That means the computer is not being passed from hand to hand. We have learned how to make noncontact deliveries, and those are things that have made the us much safer and allowing to continue to function it is due to the amazing efforts of our people. David we certainly see that at our house. You are going through a transition before this crisis. You have a new ceo coming in. You will remain as chairman. Has this crisis changed that transition . We have seen that at other companies. David a. it has not change the timing. It has changed the process a little bit. When we first started together, carol and i, she was shadowing, we were doing things together. Now we have been doing more virtual shadowing. That has changed a little bit. We are still getting her out to meet our people good it is just through virtual means versus in person. The great thing about this is she has been able to see firsthand how we are dealing with this crisis and she will be , and withunning start the questions about what is the economy going to do and the remainder of the year, having someone like carols background and emphasis on the financial side of it, and having lived through the Great Recession in a previous life, it has convinced me more and more she is the right person at the right time. The transition has been different than what we planned, no doubt about it. David everything is different from what we all plan. Thank you very much for spending time with us. Always great to talk to you, but particularly during this crisis. That is david abney, chairman and ceo of ups. Now it is time for bloomberg first word news. For that we go to mark crumpton. Top the nations Infectious Disease affect expert is warning too quickly to reopen the economy could backfire. Anthony found cheek Anthony Fauci tells abc that unless United States against the outbreak under control, a Real Recovery is not possible. Is pushing fauci back against protesters calling for him to be fired over his guidelines. New zealand instituted one of the strongest lockdowns in the world and it seems to have worked. New zealand has about 1400 confirmed and probable cases of covid19. Daily new case numbers have dwindled to single digits. The death toll at 12 is one of the lowest among developed nations. There has not been a day like this in the oil market since 1982. New york crude has lost more than one third of its value and traded below 12 a barrel. Oil inventories have been soaring because of the collapse in demand caused by the coronavirus. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton. Bloomberg. David . David thank you so much, mark. Coming up, we will talk with representative Haley Stevens from the state of michigan. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. They negotiated through the weekend to try to get the neck spending package for the Small Business and for hospitals and testing. We go to one of the people who will vote on that, representative Haley Stevens from michigan, democrat. Great to have you back with us, congresswoman. Give us a sense of what you believe is in the package and when will they be likely to vote on it . Rep. Stevens thanks for having me. I am optimistic we can reach a deal this week. I have always looked at these packages, particularly the first on package we did for relief coronavirus as triage. We are in an unprecedented situation, and we are doing triage so that we can prioritize the health and safety of every american, that is priority number one. Two, so that our economy can see its way through to the other side. The carers act, which was largely dubbed as relief, it was a 2. 2 trillion package, money that went to support hardworking american families, money made available to Small Businesses, and money made available to our cities. We realize we have to keep going. A lot of over prescribed programs, particularly around the payment protection program. Ive been around the clock with our Small Businesses in michigan , our main street businesses, and we have to make sure they are able to hibernate and feedthrough to the other side. David theres a lot of need. The 349 billion went away right quick and will reportedly be replenished. Arehe same side there reports democrats want to handle not just the hospital for testing but also the state and local government. It appears that will be put off. Why is that . Rep. Stevens we have known all along that testing is priority number one. Our first coronavirus package at the top of march, the very beginning of march started to prioritize funding for new treatments, funding for a vaccine, funding for testing. A lot of what you are seeing going on right now in terms of the debate is who is going to be responsible, who bears the administrative responsibility. We know in michigan we are the top covid hotspot. You get people who want to get test, who should be qualifying for tests, and are having a hard time accessing those testing capabilities. That is also something we are dealing with as we are reconciling with the economic considerations as well. I am confident we will continue Going Forward here in terms of how we break down the packages. You are looking at the economy. I am a former treasury official. Economic relief, economic triage, it makes sense to make it look exclusive for that subject. If youre going to be doing economic triage, lets do that. If youll be doing health care package, lets focus on that. If we can bring them together into one package, maybe we can do that, or folks want to break it up, that depends. On the Small Business front, we cannot save revenue where revenue does not exist. You talk to your Sandwich Shop owners, your beauty salons, and revenue is not coming in. What we do want to have is the businesses succeed to the other side. Mayors the phone with my and township supervisors every single week, and they are telling me make sure our Small Businesses can survive. That is important for our citys revenue or our township revenue. In terms of reimbursable costs for cities with the personal protective equipment or the testing ability, that also has to come down. We are not here cherry picking, we are doing triage on the economy and on the health, they are inextricable from one another. David michigan is a hotspot. I follow it every day because ive a sister who is a nurse in ann arbor. Your number four on the number of cases as well as the debts per capita. What kind of strain is that putting on the state and local budgets . Rep. Stevens bless your sisters heart and we are so grateful and salute all of our nurses and doctors and respiratory therapist and people who comprise our Hospital System , from the custodial staff to the Food Services staff. There is so much that is happening, so many great actions are happening throughout our community with people contributing food and the like. , there to your question is a lot of uncertainty. There are communities are prioritizing health and safety in a way they never dreamed. Local hospital drinks are designated morgues local hockey ranks are designated morgues. These are suburban districts we are all paying attention to what is happening in detroit. Realealth effects are very just as the economic effects are very real. The symbiotic nature of the two. Just as we are dubbed a covid hotspot and we pray for and support all of the families who have lost a loved one, we want to make sure we do not lost. Ence any more lives we will bring our economy back, we have to do it when we stop the spread, when we flatten the curve. That is why these actions are being taken right now. It is uncomfortable. I have talked every type of Business Owner from the Landscaping Companies to the main street companies. They are being impacted. At the same time, we are seeing this uptick in fatalities due to this disease and we have to reconcile that, we have to push back on that first. Congresswoman, thank you very much for your time. That is congresswoman Haley Stevens, democrat from michigan. Coming up, we will talk about the stock of the hour. It is halliburton, pledging deep cost cuts to help whether the oil storm. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Time for our stock of the hour, halliburton. It has been on something of a roller coaster ride in the face of the oil price collapse. Wti is under nine dollars. At the same time, halliburton says they will cut costs. We turn now to taylor riggs. Taylor like you mentioned, halliburton on a roller coaster ride, as much as 4 higher, now up to 2 to 3 . The longterm trajectory of the stock now down about 70 year to date. Oil now below 10 a barrel. Today they announced specific measures moving the stock. If you flip up the board, i want to dive into some of the costcutting measures. That is what is moving stocks. They did say they would cut capex, they are canceling all planned raises, they are eliminating a layer of management. Halliburton did say it would not increase its debt load. All of this to preserve cash. Flipping up the board, the capex story is interesting. This is the first time the company has had a capex budget of less than 1 billion since oil prices saw a move downward. This comes while they were writing down the value of their assets by 1. 1 billion. Finally, what this means from the humanity perspective is job losses are coming, if they not already being seen. As you can see in this chart, they are going to be furloughing thousands of workers. A lot of this comes within the u. S. Fracking division. This chart is not specific to halliburton. They are seeing the u. S. Fracking demand expected to drop 60 . Here you have alltime fracking in the u. S. Back down to the lows of 2016. Back in 2016, those were alltime lows. From a financial and humanitarian perspective for you today. David thank you so much. That is taylor riggs reporting on halliburton. Takes a lot of courage to be investing in the energy sector. Coming up, we will talk with senator bob menendez of new jersey on the people of another historic spending bill. He has another one after that to help state and local governments. Ons is balance of power Bloomberg Television and radio. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] david this is balance of power on Bloomberg Television and radio. Im david westin. Time now for first word news with mark crumpton. Im sorry, mark is not there yet. Every day, we do reports about the spread of the coronavirus, peaking in some places and not so much others. A new report out of Michael Morgan stanley. Michael zezas is with us to talk about what they presented. A fascinating report. One of the things that struck me is your projection that it may be different in different regions come as we talk about coming back to work, the coast may be ahead of the center of the country. Michael i think thats exactly right. Will largely govern the reopening process, it will be dynamic, it will be in stages. There will probably be feedback loops where the data and testing will dictate how quickly some state will open. Some states will test boundaries more than others, and of course there could be some backsliding. Ultimately, the policy of sickness, testing, whether hospitals have capacity determines who opens quickly and who doesnt. If you broaden that out for the economy, that means we are looking at more of a ushaped recovery, one that will take a bit longer. That is Morgan Stanleys economics forecast right now. David the president has come out with his guidelines, these three phases. You need a decline in a certain set of numbers. What is the most important number, cases, hospitalizations, deaths, all of the above . Michael it seems to be the sum of all the above. Practically speaking, what will be most important to individual is what their individual Hospital Capacity looks like. Health careoes the infrastructure exist so you feel comfortable taking the chances of opening of your economy more, so you can treat people when they get ill . Public policy challenges that the governors are facing. Data that, it is the speaks to this, and will come down to Hospital Capacity. David how do you estimate the extent of testing . Vote for people who have it, but also the serology test, those with antibodies. How much we need, and when we will get it . Michael our biotech analyst did a lot of the work here. His perspective, given what companies are doing, the widespreadavailable, serology testing should be available later in june. You does not mean that if did not have regular testing ahead of that, you could open back up and discover tracing, give you confidence that you are not having spikes. Serology testing will give you testingy a broad enough data so that you can deescalate some of the distancing in a meaningful way. That doesnt mean that you could go back completely to normal, but you could get more people back to the workforce in a closer capacity environment, particularly important for new york, new jersey, california. David that is the testing, what about the treatment, vaccine . What do we see in the treatment, understanding that the treatment will come before the vaccine, in all likelihood. Am deferringn, i to the wisdom of my colleague matthew. The expectation is the different types of antivirals underdevelopment could be widespread enough, both production and acceptable use, by the time you get deeper into the summer, such that part of the overall story, Hospital Capacity it is not just whether there is enough ventilators, but enough treatment to turn people through the hospitals quicker. All of these things come to bear as you get later into june, the summer. The ultimate of what gets you back to normal has to be around immunization. That is not something we are expecting until 2021. From a fiscal policy perspective, we are seeing congress wanting to bring stimulus to bear. The slow ramp up period, as beneficial as these staged robots in the economy are, there is still plenty of risk. Risk. Kslide what can we learn from china, if anything, from their experience . They are ahead of us on this thing. They have some manufacturing back open, even some restaurants. There is only a limited amount we can learn at this point. Some of the stuff is fairly obvious. If you are bringing people back into enclosed places, there needs to be more space between them. Uprefore, the economic ramp will be relatively slow. Said, i think theres enough confusion about the body of data that we have so far globally, it is hard to conclude from chinas experience that we lshaped a v, u, or recovery, particularly when we are talking about different cultural norms. The administration allowing states to dictate things means we will have different policies as opposed to onesizefitsall. There are questions to what extent the u. S. Can do Contact Tracing the way that china does. I hesitate to say that we could learn a lot from china, other than the obvious. As we are testing the waters and reopening the economy, it will termsly be slow going in of putting a lot of people in the same place. A lot of Economic Activity requires that. Finally, given what you have done at morgan stanley, the projections you have made, what information do you have about reopening the economy . That was the big subject with the president and others. What wisdom would you have on when to do it, how to do it . Of the day,the end we need more data. We need a lot more traditional testing, a lot of serology testing would be particularly helpful. Is that data that will be helpful to decisionmakers, so they can do something closer to what is considered normal before hand. There are a lot of cultural challenges on how you collect that data. Maybe not everyone is ready for the type of Contact Tracing that would be acceptable in other countries, the there are probably other way to get the data by having a massive scale testing regime. One way or the other, we have to reduce the number of unknowns in terms of how pervasive the sickness is, so that people can have confidence, employers can have confidence to bring people back to work. It all boils back to getting more data. David thank you so much, michael. Really helpful report. Michael zezas, head of Public Policy at morgan stanley. Coming up, we are speaking to of newendez o jersey. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Reportedly, we are about to get another spending bill out of the congress dealing with Small Businesses are replenishing that ppp program, as well as replenishing hospitals and testing, but leaving for another day state and local aid. Bob menendez has a plan that he announced earlier today, along republican senator cassidy from louisiana, about what we should do about state aid. Thank you so much for joining us. Five hundred billion dollars, three tranches. Clean your plan. Sen. Menendez thank you, david. Our plan is bipartisan. It is called the statement is simple 84 tradition and recovery. 150ilds upon the existing billion set aside in the cares act but expands eligibility to counties and towns of populations of 50,000 or greater. It breaks it down into three different trudges. Billion based on population size. Another 106 is 6. 6 billion based on infection rates. 166. 6 based on revenue losses. We need to help the states and minutes of holidays minutes of holidays meet the challenge at a time of dwindling revenues but demanding services. Upon the call of the bipartisan National Governors association, republican and democratic governors alike. They put that figure out there, and we came up with a formula that we think is fair to all, and addresses were the greatest needs are based on infection rates. Substantialave a issue with the coronavirus in your home state of new jersey. I want to come back to that in a moment. How much conversation did you do with Governor Phil Murphy in new jersey . He says they really have a problem. If they dont get money, they may have to cut back essential services. Mur menendez governor phy is someone that i admire in these difficult times. Constant conversations on how we can get ppp resources to Small Business, getting protective gear to our frontline hospital workers, how we deal with essential state services at a time when new jersey and other states are losing an enormous amount of revenue but having an enormous amount of expenditures. Certainly, the experiences of new jersey have helped inform me. Senator cassidy of louisiana, the thirdlargest state in terms of facing covid19 consequences. The information has really informed me, as well as Conference Calls i have held h states [indiscernible] it is a tough time. Hold on, we are having some difficulty holding you. Hearing you. We are going to go to break and then we will come back for more with senator bob menendez. This is balance of power on Bloomberg Television and radio. N and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Earlier today, president trumps chief Economic Advisor larry kudlow spoke with bloomberg, talked about the new proposed spending bill coming out this week, as well as how the existing spending package is working. I dont think the rules were bad to begin with. There may have been some glitches here and there. Secretary mnuchin has done a terrific job at treasury working with sba. I guess nothing is perfect in life. But on the whole, judging by how fast that original 350 billion went out the window, i think it is a good program. You, we are stepping up into the mediumsized area, and that has been done principally through the Federal Reserve lending facility. Of course, there will be some assistance to large, Important Companies that have hardships, obviously the airlines are one of them. It is a pretty solid program. There are always tweaks here and there, but the fact that it went so quickly is a testimony to its success. I agree, i thought there would be trouble getting money out the door. I except that. I was wrong about that. But if a 1 billion company can get access to the Paycheck Protection Program designed for small companies, we have a bit of a problem. Is that part of the agreement . Things up a tweak little bit, so a company like shake shack does not get access to those funds for Small Businesses . Look, i have not really follow the shake shack story. Apparently, there were some issues there. They may be able to seek financing through the Federal Reserve loan facility. I dont want to go there. There will always be tweaks. We have talked about this. We just want to stabilize, put enough cash, liquidity into the economy to get it through the right . Uple of weeks, all that is the whole purpose of this. Small businesses and those who work for Small Businesses. The unemployment numbers are very bad, although there is some evidence they may be slightly less bad. But it is a bad hardship situation, no question. If we can get through the next couple of weeks, as you know, the administrations Health Scientists have given the governors a good roadmap for reopening in several stages. Could be a better transition month, moving into the summer. Contraction will give way to some economic growth. We are trying to set the stage for that, keep folks going with a direct treasury checks, deferral of the payroll tax, deferral of Student Loans and income taxes, on and on. That is what we are trying to do. In this short printer of time, i have to give credit, the operating agency is moving on. Andets move on to tariffs trade. Deferring payments of tariffs on some goods. And you give me the purpose of that . You and i have talked several months about this. Some action overnight. Why are you doing it . Favoredocalled most nations, where there are hardship cases, we will suspend tariffs for three months. We are not rolling back china or other trade deals. But in some cases, the customs duties, the excise tax you pay, the customs duty will be lifted if there are hardship cases. Concerncular, a lot of about retailers and related supply chains getting into the united dates. States. It is a significant action, a way of helping certain industries. It is not an enormous action and does not change the president s trade policies. But, yes, we are deferring, as we have done elsewhere in the recovery plan. That was larry kudlow earlier today talking to Bloomberg Television. Im delighted to say we have back with us bob menendez of new jersey. Sorry for that technical difficulty. We were talking about your proposal of 500 billion in aid that you are making with senator cassidy from louisiana. Can you give us a sense of the prospects for passage of the proposal. . Specifically, is the white house supporting it . Proposalndez this follows the call by the bipartisan National Governors states,ion, all 50 democrat and republican governors alike, who called for this amount of money. Senator cassidy of louisiana has joined me in developing the formula that we have. We have a bipartisan proposal to start out with. I know the conference of mayors, league of cities is also advocating for resources. We think there will be widespread support. I cannot speak to the administrations views yet, but at the end of the day, we think helping the states is critical to reviving the National Economy and meeting the challenges. We think there will be bipartisan support by the time we do covid. David lets come back to your home state of new jersey. There is such a problem with the coronavirus there. Let me ask you specifically about the nursing homes, extended care facilities. There are increasing reports of real difficulties at those facilities. Do you know more about that . Sen. Menendez i know that the governor has demanded realtime reporting on all of our nursing homes. Obviously, we have a vulnerable population, particularly to covid19, those that already have immune deficiencies and other challenges. I know that he has called on all the operators to give in time reporting. The department of health has sent out its inspectors. Tolso know, as it relates our veterans homes, he has engaged the military as well, the Veterans Administration to be responsive there. This is an alarming challenge to an overall incredible set of circumstances where we have lost over 4200 lives in our state. David last week, there was a lot of talk about getting the country getting back to work again. Your governor has been adamant saying lets not go too far, too fast. We dont want to go backwards. On exactly views what we should be doing as a country to get the economy going again . We dont have to want to go back to lockdown. On the other hand, the longer the economy is on its back, the more difficult for everyone. Sen. Menendez i personally believe the nations wealth will only get better with the nations health, which means we have to deal with breaking the back of the spread of the virus. The only way to do that is to do the difficult social distancing measures that take a personal, emotional, and economic toll. But i cannot believe that we will get the economy back to where we wanted if there is not Consumer Confidence that when i go out to a function, restaurant, retail store, or anything else, that i have at least seriously mitigated the risk that i will get infected. Until there is a sense that can happen, we dont fully get the economy back on board. That is why i and others on the call with the Vice President made a very strong case for testing. David that is senator bob menendez. Thank you. Thank you for your patience. This is balance of power on Bloomberg Television and radio. York, it is 1 00 in new 6 00 in london, 1 00 a. M. In hong kong. Im vonnie quinn. Welcome to bloomberg markets. Crude oil prices are getting crushed. Wti is down 73 right now, barrel, as 4. 91 a physical Storage Space rises. Halliburton said it is cutting jobs and salary in this worst ever oil bust. The coronavirus pandemic continues, with deaths in the u. S. Topping 40,000. Some Health Officials embracing Digital Tools to curb the spread. We will get some thoughts from crystal watson. Response to the pandemic and another round of stimulus. We will speak to new jersey representative josh gottheimer