Question, which is does equities know what they are doing . We have jobs numbers looking like they will be bleak. Is the very devastating consensus for more than 21 million jobs lost in the month of april. It is interesting because the bulls and the bears have been a little bit of a sideways battle over the last 20 trading days. There all there are higher highs eating that the bulls might have strength, but the s p 500 relative to the big rally out of march really has not done much net. The bulls and bears are looking for more information. If the report comes in better than what is expected, that could help the buyers rake out of the range. For some of the reit if there is some color worse than expected, you could see some test, and it seems like there are a lot of folks on the street that are expecting some sort of downside action. Maybe not on the payrolls report, but at some point. David thank you so very much. Some of the states are starting to open up, although at different times in different ways. This is republican senator mike braun from the state of indiana. Thank you for joining us. You are one of the first people saying we should start opening up, that in different ways at efrin times. Give us a sense of where we are. Can you hear me . Senator mike . Back in indiana that started on friday effective on monday, and our state is a great example. Areave the indy metro basically within a rural state, and we have some counties impacted by chicago and a few Rural Counties that got hit hard by cincinnati. 92 counties, and probably 80 of us were out in a different kind of dynamic. County, cases in my own which is a Regional Center among Rural Counties. They were really ready and roaring to get going yesterday. Dynamic isme kind of across the country, and you can use that analogy statebystate. I never didk, and like the onesizefitsall, and i was a big believer in listen to the experts about tamping down the disease. A critical point will be how we do this. This is more difficult because we have to stay disciplined and be very entrepreneurial so we do not have real supply and demand disruption that makes it tough to recover down the road. Say, there is a fair amount of variation. Map, and wed at the have Marion County where indianapolis is. Lake county where fort wayne is. They have much more hotspots. Can you have really be can you really be as granular granular granular as opening up county by county, because people will just move, wont they . Ok. We will come back from capitol hill after a break when we figure out some of these technical issues. This is bloomberg. David welcome back. I think we have worked out our technical problems and i am delighted to say that senator mike braun has been patient and understanding. We were talking about opening up the state and i was asking if we could do it county by county because there is a variation as you suggest between indianapolis, fort wright fort wayne, and the others. Sen. Braun our governor did a good job of putting the emphasis on the disease early. I do not think that there any businesses that do not know that it is in their own selfinterest interest to Pay Attention to the guidelines and many businesses were determined to be nonessential could have been open all along because they had low traffic and some of those stores, so i think businesses are ready to go and they know it is a new normal. Yes, we need to do this county by county, because as i said, if we do the safest thing only, and you still pay close attention to everything we have learned, you will be dealing with stuff that we cannot see now on an economic basis later. Some of that could be bankruptcies, places not coming back, that is why it is important to prepare to reopen. David there is a risk no matter what you do, at this point. The question is how you manage the risk. Are you confident that you have the testing capability so that you can spot hotspots as they develop . Sen. Braun testing is an interesting question because everybody talks about it and it is almost like you are stating the obvious. I talked to one of the ceos of a Pharmaceutical Company in indiana and he said that has been an example of really entrepreneurial endeavor to get the test, and the reagents. That has been in the works, and we will have a cascade of them available and the governor has been smart and that he will focus them through the places that ive had a flareup, in the hotspots that have had a flareup, the hotspots. We will have enough places that we can do it safely. We have only known the genome of the virus a little more than three months. I think we have done ok, everybody has been harping about it. That are working on it have been doing Everything Possible to get them to the market to be used. David talk to us about the Food Supply Chain, because you have a lot of food provided by indiana. You have a tysons plant that is a hotspot as well. Are we concerned about the Food Supply Chain . Sen. Braun no, when it comes to food supply and the processing of it, the process is more elbow to elbow than process in regular manufacturing. It presents a challenge, but when i talk to the people who run these companies, and the employees that have to feel secure, they have done a lot by putting plexiglass barriers in between and maybe stretching out the line a little bit. Securityld lead feud let Food Security become an issue, it would take a dire situation and make it worse. Again, i see the companies that has to deal with this they are not taking it casually for the sake and safety of the employees and their businesses they know they need to do the right thing. We need to be careful with food supply because it is the most important component to get through this to where that doesnt get disrupted. We know President Trump invoked the defense production act with respect to some of the processing plants. You say it should also apply to frozen fruits and vegetables. Sen. Braun i think processed fruits and vegetables, generally in a can, would be the foundation for food banks, and when you get down to a food supply that is more transportable, it is probably the basis of, and i thought it needed to be looked at in the same way as poultry, and livestock. I think we need to pay special attention to that part of our economy, and youve got to remember, agriculture was the only stressed sector of the economy going into it, so many of the companies, especially from farmers and producers to the processors did not have that Balance Sheet that allows them to get through as easily, because the farm sector, when we get through this is still dealing with historically high input costs, low commodity prices, and that reverberates throughout the food chain supply. The farm you say, sector was under stress long before the pandemic happened. Part of the relief was supposed to come with the deal with china. You have hopes that the chinese will end up buying close to the amount of Food Supplies that they had committed to . Sen. Braun that has gotten to be such a complicated subject because of the whole discussion of how they handled it there. Authoritarian, some say totalitarian, political system. I think that showed its true colors during all of this. We have got to find a way for them to reconcile themselves with the rest of the world when it comes to the trade component that it looks like we had just gotten through, and then the coronavirus rose in that country. He could put us into a tailspin similar it could put us into a tailspin similar to the cold war. From this, learn liberalize some of their political system so they blended more with the world, and a lot of the burden is on their shoulders. Hopefully they will learn from this because the whole dynamic between us and them is not going to go away. Have been aly, you senator for a while, but you spent a career as a businessman. Give us your best judgment about how well we could do, best case, coming out of this issue. We heard the president talk about phenomenal numbers and he could be optimistic. Realistically, what can we expect . Sen. Braun i think, if we do what i talked about in floor speeches, a really smart, entrepreneurial restart where we take some mitigated risk because so much of what could happen economically we cannot see yet because it would cascade in a way that could swamp it into something tougher than 2008 four 2009. We were the healthiest economy i have ever seen, and we had the ability to not backslide, Pay Attention to what we know works, then yes, we could have a strong resurgence. I do not know if that happens with the speed that the president is looking at, because it will be closer to what he is looking at than the opposite if we stay hunkered down and do not try to maybe protect the most vulnerable a little better, and then have a smart restart and entrepreneurial rebirth of the economy, and yes, i think we can see good things sooner rather than later. David thank you for your time and your patience with the technical challenges. That is senator mike braun. Coming up, we will talk with Michael Froman about what the pandemic is revealing about inequalities when it comes to the financial sector. David welcome back to balance of power. I am david westin. President trump is on his way to arizona and has been getting out of washington and has been eager to visit a plant making the n95 masks. We bring you the iona college professor, jeanne zaino. The president will visit with the plants and native americans. Will this change the political raise . Jeanne i think that the president and the campaign are feeling heat as we look at the numbers. We have seen the bump he enjoyed, brief as it was, has dissipated, and he is underwater in terms of approval, in controlling the crisis, and overall. We see him anxious to get out and it is not a surprise he is visiting one of the key states, the state of arizona, where recent polls have shown joe biden up by three or four percentage points. That signifies that they believe that it is time to get him out there in the swing states and to make sure that he can hold the states. Such an important point, because if you look at the polling it has been going from red into a purple area where it has gotten closer. At the same time the president is picking places where he can say look at some of the good things we are doing. He is trying to put together his case. What it what does he have to do to prevail in november . That theyis latest ad put out is very triumphant and talks about the return of the economy, and we know that his Approval Ratings there are better than the overall Approval Rating in crisis ratings. We want to focus he wants to focus on the fact that america is set to come back. I think that is what he needs to do. I think he does need to focus on the crisis itself, and the fact that he can be trusted to handle it. He is still below joe biden in most of those numbers. Very important is the economy. It will be in the swing states that the campaign focuses on, wisconsin, michigan, and florida. His numbers have dipped amongst the over 65 group in florida. If he does not do well with that group in this in the swing states, he could be in danger of winning the election. The reason he loses the popular vote is that he over performs with these popular dust with these groups. Any debt there is a problem for him. Reallyhe has to establish himself as the one who is competent in handling this crisis. Part of that is controlling the message, and specifically we see that they have said nobody from the Coronavirus Task force can answer questions without personal approval of the chief of staff. Is that going to work to control the message . When dr. Fauci went up earlier, it caused a bit of concern. Jeanne i think we see them trying to continue what they did during the impeachment, which seems like so long ago, which is that they are unwilling to go before congress and to handover materials because they feel that, even though it is a republican senate, that every time they have done that it has come back to haunt them. They want to control this message they do not want to these people going before committees and testifying in congress has a right to be frustrated because their role is to engage in oversight, and like it or not, the white house will have to contend with a lot of oversight in this crisis, not just right now, but as we go forward and Congress Tries to figure out where the executive branch went wrong. The piece in the New York Times about the white house not being not honest about the number of deaths that they expect to see is something they will have to answer for to congress at some point. David on that point, the president addressed that as he went to joint base andrews and said that data was without mitigation and we will have a lot of mitigation. He tried to push back against that. One thing they cannot control as the virus. How vulnerable are we to a resurgence as they open up some of the states . Jeanne they are incredibly vulnerable to that, and that is where they have to be cautious. We know from all of the science that that is a distinct possibility. The president is walking a tightrope between being focused on reopening the economy and trying to make sure that the numbers do not go up. We are seeing some push. We saw former governor christie in the press saying that it is time to accept the fact that there may be a lossoflife and that we have to get back to work. The president is sensitive to that and that is the message coming from the right and many of his supporters. At the same time, that lossoflife can be problematic for him politically and many other ways. David it is a tough choice, about it. Ne who teaches at iona college. Now it is the stock of the hour, pfizer, who has a candidate in the race for a vaccine. Abigail they certainly do. Pfizer has announced that they are in experimental vaccine trials with their german partner. We have the stock popping higher, and you can see that the german shares have done well. What stands out the most, a very aggressive timeline, because it was just four months ago or so when they were in preclinical , this for this vaccine experimental vaccine. They are saying that there is some possibility that there could be emergency use bite september. Typically it by september. Typically it takes 10 years for a vaccine to go through clinical stage two approved use. It is also important to see what is promised, the manufacturing amounts, but nonetheless the stock is popping higher. So, unfair question, why pfizer . There are other Drug Companies with candidates in the race . Johnson johnson announced one and we have other candidates. Why is it pfizer . Or is this going around at different times . Abigail it seems like all of the Big Pharma Companies are trying to get a vaccine developed to really solve this covid19 crisis, whether or not that krait that happens, because the ebola vaccine was the fastest one i am aware of. That took five years. The idea that it could happen so quickly is perhaps hard to believe. From a financial standpoint it will not represent too much. Drug,not similar to a big they will not be able to price it at aggressively. Aggressively. They are looking for the saw the star power of solving the problem for these crisis. You have all these companies trying to come up with a vaccine first. The timeline for all of these scenes and grant seems aggressive but one or more will come up with a vaccine sooner rather than later. David it would be an awfully good thing for a brand. One last question which is there are treatments as opposed to vaccines. For example, gilead. Do those stocks get a lift when they get favorable news . David it is puzzling, the gilead list is still up more than 20 last week rallying on the idea that that drug can be used to help. But it lessens the amount of time that a patient is suffering. In that case, by three days. That is not a significant vaccine, cure, or a or something that would change any persons behavior. It does not mean once you are exposed to the virus it will change it in any way. Any mention of a drug or vaccine seems to send some of these pharma and Biotech Companies soaring higher. David that is understandable. Thank you for that report. Pfizer, are stock of the hour. Coming up we caught we talk with the vice chairman of mastercard about their effort to get Banking Services around the world. This is balance of power. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need saving you up to 400 a year. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. David welcome back to balance of power on Bloomberg Television and radio. Im david westin. The pandemic is pointing out problems we have in our society and economy that we knew we had, but it is emphasizing how bad they are. One is in the extreme inequality of the Financial Services available to people. That is something mastercard has been working on. Vicechairman the and president for Economic Growth for mastercard, Michael Froman. Thank you so much for being with us. Give us a sense of what this initiative is. It is an expansion, i understand, of what you been doing. Michael thank you for having me. Have a year ago, mastercard committed to bringing half a Million People who have been exquisite from the Financial System into the system. We decided now more than ever its important that people have access to the digital economy, so we raised that goal to a billion between now and 2025. We have also said its important to bring 50 million micro and Small Businesses into the economy. Because there continues to be a gender gap in Financial Inclusion women tend to lag behind about 9 we will focus on reaching women owned or women run businesses around the world. David give us a sense of the geography. How many of these in the United States, how many overseas . Mastercard, of course, is a global company. Michael there are about 1. 7 billion people in the world who are excluded from the Financial System. Most of them are in developing countries but there are some right here in the u. S. And in , underwho are unbanked banked. Tothe u. S. , estimates of 30 40 Million People that dont have a financial relationship. We have been figuring out how best to reach them. Sometimes it is best through government disbursement programs. For example, millions of people will get their economic payments from the government on one of our cards. Sometimes, it will be working with those that have the capability of bringing people into the Financial System, or partnering with other companies. We have a partnership with a big coffee Trading Group to help put their workers, for example, in mexico, on digital payments. That means the coffee grower is getting 20 more per product than she may have gotten before because we had eliminated the need to go through cash. David you mentioned Small Businesses as part of this. Give us a sense of what youre seeing with mastercard, the sense that Small Businesses are drawn down on their credit, or for that matter, not buying at all, reduced activity . Michael we are certainly seeing an impact here. People are focusing on essential purchases like groceries, pharmacy purchases. Theres a big movement from brickandmortar to ecommerce. Even where there is brickandmortar, where people are going face to face, we see a big rise in contactless payments. 40 growth in people going and just tapping their card because they dont want to handle cash, they dont want to put in a pin number. Being able to tap and go is a safe and secure way of making payments. , as you said,es are particularly hit by this crisis. We have committed 250 million in Financial Services and support to small and Mediumsized Companies to help them digitize, bring them into the ecommerce environment, make sure their transactions are safe and secure from cyberattack and fraud. An area ofe continued focus in the United States and around the world. David one of the questions we are asking, almost all of us now, to what extent is this pandemic changing where he will be . Things beennt have rushed because of this pandemic . Michael i think this crisis has underscored just how important digitization is, for individuals to be able to transact, get payments from their government, for Small Businesses to be able to be in contact with their customers through ecommerce, do transactions in some form other than cash. That trend was already underway but this has accelerated it. Certainly in the United States, which has lagged behind a number of other markets when it came to contactless payments, we have seen an increased demand in contactless. David one of the things we have heard from major banks is reserved for possible that credit. People will have a tougher time paying their cards when the time comes due. What are you seeing an mastercard and what adjustments are you making or that . Thatel i like to say apple is not a fruit, amazon is not a river, and messe mastercard is not a credit card company. We are the infrastructure that makes that have been. Mastercard is committed to being a multirail company. We want to help people pay anyway they can pay. Maybe that is a credit card, debit card, or digitally. We want to make sure that we had the capability we are the company wherel companies can pay with any source. We are certainly doing everything we can to help our customers, and their customers, get through this crisis. David good lesson. You have a Vantage Point into the ecosystem as a practical matter. What actions are using the banks take to protect themselves, whether reducing lines of credit, or how can they confirm that credit cardholders are Still Holding a job . It is a good question for the banks in terms of how they are engaging with their consumers. We are making sure, however that evolves, people can get paid for areucts they have sold, enjoying the guarantee that comes with a credit card payment. We are making sure that we make it as smooth as possible, as banks and merchants make adjustments through this crisis. David last question, and i want to draw from your experience as the u. S. Trade representative, as well as your work and mastercard. Do you have any concern as people are looking around the world, saying globalization went too far, do you think borders could be put up, not just for immigration, but for Payment Systems . Michael we do have a concern that people, countries will resort toward nationalism, nativism, protectionism. Governments have absolute legitimate concerns and interests about privacy, wanting to make sure they have the best possible financial infrastructure in the country. One thing this crisis underscores, for example, is just how important there is that there are robust systems with cybersecurity, antifraud protections, and that you can see trends in data across countries. Whether it is the imf, world bank, or other institutions, can then take action for those that are most horrible. Having a global payment gullibility that capability, having access to multiple countries allows that to happen. We are committed to working with governments through this crisis, we are helping a lot of them through our data analytics, understanding the impact of the covid crisis, and through our payment capabilities, helping them to disperse funds. We will continue to work with them as we come out of this crisis. Im sure they have strong and secure Payment Systems in each country. So much for you spending time with us today. Michael froman, vice chairman of mastercard. Now it is time for bloomberg first word news. President trump says the top u. S. Infectious disease expert, dr. Anthony fauci, was blocked from testifying to the house on the coronavirus this week because the chamber is controlled by democrats. Speaking to reporters as he left for arizona, the president said the house is a set up, the house is a bunch of trump haters. Last week, the white house said it would be counterproductive while they are working to that of the outbreak. Are warningficials about a second wave of coronavirus infections. Health officials are calling for steppedup efforts to identify possible new victims, monitor symptoms, and trace contacts. More than 4 million italians went back to work on monday. Italy has more than 211,000 cases. More than 29,000 people have died in italy. Hong kong will soon ease social distancing measures. All but maintained the virus. Schools will resume some classes at the end of the month. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. David coming up, we talk with the man who now heads logistics for the city of los angeles. Gene seroka will be right here on balance of power on Bloomberg Television and radio. David gene seroka has been the executive director for the port of los angeles, the biggest container port in the country. The chief logistics officer for the city of los angeles. Thank you for joining us. Tell us what this new job is. Gene about a month ago, mayor garcetti asked me to take on the role of chief logistics officer concurrently while i man is a largest port in the nation. The idea was to get these personal protective equipment supplies to our frontline medical folks and the hospitals. We thought we had three opportunities here. One was to speed the products through the port and lax along with our domestic distributional network. Second was to find alternative manufacturing, not to step on hospital orders, but to find other folks that could supply us these important ppes. Third, working with manufacturers especially in california, who wanted to convert their facilities to manufacture goods going to the hospitals, medical communities, and health areas. David tell us about this first big win you have. 24 million n95 masks . Gene we were scouring leads around the world, and the work that we did with honeywell yielded 24 Million Masks over a 12month period. These are the n95 masks that will go straight to the medical workers. David did you have to bid against other cities, states . Sometimes we hear it is going to the highest bidder. Gene what i can tell you is in the first several weeks of taking on this logistics role, we looked at the entire marketplace, flooded with middle people and sales reps. Prices are going through the roof, orders falling through. Five orders that never materialized for various reasons. We decided the best formula was to go straight to the manufacturer and develop those relationships. This was the first step in a larger plan to do just that. David part of it was going straight to the manufacturers. Another part of it is the last mile, how you get this ppe to the hospitals who need it. Gene right. Most of the folks in and around los angeles already have great relationships with their transportation providers. We are going to try and piggyback on that infrastructure. Where it is needed, we have this port, airport, and Distribution Network that can help the small and middle sized hospitals as well. David you are the chief logistics officer for the city of los angeles. How does that fit within the state of california . As a city employee, the idea was to help right outofthebox through the mayors vision, but we quickly found they were broader needs in the county and in the region. So we are working with all folks throughout Southern California to see how we can make a difference. We are not the answer to everyones problems right now with inventory, but we can put a dent in it. Workaround, we have to help ourselves, and we have to build that stuff found that hospitals can count on, not only now but into the future. We are in a triage phase right now, trying to get any type of products we can to our medical workers. Second, as we begin to curb this illness, we will have to replenish that inventory. We are ready for that. Longerterm, the medical supply chain is broken. We think we can add value and bring people together with Information Technology as well as the procurement capacity that the city of los angeles alls today. David we hear reports that the state of callup on you will start to open up parts of its economy. How does this fit into that overall plan . Gene the port of los angeles has been running at 80 normal volume thus far in 2020. The simple difference is in a you and i are not out shopping, dining, buying goods outside. California is slowly entering phase two, which would begin the pickupsof curbside and for florists, music stores, Sporting Goods outfits. This will slowly move people in a direction where commerce can begin again. We have plenty of cargo in our warehouses. Southern california has the largest warehouse and Distribution Center in the world , at more than 1. 8 billion square feet. Today, getting the product out domestically to the interior, our major hubs, is front of mind. We have plenty of capacity in our terminal tarmacs to grow as the economy opens up. Please remember, the port of Los Angeles Moves cargo in and out of each and every one of our 435 congressional districts, so this will be very important for us to have a line of sight to see what is coming in, so we can speed up the marketplace. Gene seroka is the chief logistics officer for the city of los angeles. Im delighted to say that he will be with us in the second hour of balance of power. This is balance of power on Bloomberg Television and radio. David welcome back to balance of power on Bloomberg Television and radio. Im david westin. Holding its annual digital gathering today, but this year is different, in part, because it will be all virtual, and secondly, they will have 80,000 people participate. Howh may reflect just dependent we have all become on computers as we work from home. I spoke to the ceo of ibm. What customers are really seeking from them to make sure all of these Computers Keep working. One of the products we will announce is in the category that we call ai for ig. Cost then i. T. Industry about 265 billion. If you react after the fact, that cost is still there. If we can predict what will go wrong and put that right in the workflow, and fix it even before it happens, that brings huge power, unlocking the potential of ai. That is something that we are excited about, in addition to the other hybrid Cloud Technologies we are bringing out in this conference. Those of us working from home and experiencing the glitches that happen are eager to have those corrected. Will it redeem the situations we have, where our system goes down, really have to reboot . That product is coming out now. We are announcing it in may and people can start purchasing it for deployment in this quarter. That is a great power. Ai, if yout more on look at its impact on covid, something that we are all suffering from right now, and i look at medical research in india, i look at hospitals in and these states, examples go across dozens of countries. We can use intelligent ai out a lot to triage of information that people are looking for. Parents arel case, anxious about their children, can interact with an ai assistant. That way, you can take a thousand calls and take them out of the medical professionals hands, allowing them to focus on much more serious cases. This is serious enough where you should have a person interact. This is a useful example to show i. T. , can go, not just in where we would like all of our infrastructure to stay up all the time, and we believe the tools will help, but also in helping our citizens and government and medical professionals be able to help everyone deal with covid19. You make an important point, mentioning various countries where this could be applied. ,he situation has been global but even before the pandemic, toe countries were trying draw some borders when it came to data, some internet issues. Do you see any indications that the pandemic problem we are having may increase the resistance to lows of data across borders . I will begin with my perspective. Course, nations will always try to advantage themselves. Back, both step global trade and the free flow of data have shown the entire Global Economy gets better, and everyone benefits. It is a false dilemma when people think about a winlose. It is not a sports game. It is a winwin if you can increase the pie for everyone. I acknowledge, that should come with regulations, protections around ip, but the free flow of goods and data is what unlocks the potential for everyone. In the pandemic, im encouraged that people are cooperating more, people are taking advantage of computing capabilities everywhere, sharing has increased. So there is a positive sign among all of the emotions that naturally accompany such a crisis. David that was the ceo of ibm. He will celebrate his onemonth anniversary of being ceo just tomorrow. That will do it for the tv portion of balance of power today. There is a second hour on bloomberg radio. Continue our discussion with gene seroka. We will also speak with the Pennsylvania Attorney general the doordash to serve underserved population in philadelphia. This is bloomberg. Vonnie vonnie it is 1 00 p. M. In new york, 6 00 p. M. In london, and 1 00 a. M. In hong kong. Im vonnie quinn. Welcome to bloomberg markets. Stocks are rising. Crude oil surging as wti has for streak of daily gains in three months. Energy and Health Care Stocks leading the way with the s p 500 hovering obsession highs. This as more economies moved toward easing their coronavirus lockdowns. California and new york unveiling plans to reopen as the rate of new infections slows for now. The global death toll now topping a quarter Million People. The outline for the s p 500 returns to records. Marko kolanovic says he is looking to the second half of 2021 for an alltime high. First, lets get a check on the markets. The s p 500 off of