For the year. 4 , at a 25 handle after saudi relaxed. The dollar index just below, weaker. In the afternoon u. S. Session, many currencies including sterling and the euro, weaker today. Deeper dive into the Market Action analysis,e equity bond market analysis, two year yield hit a record low, below 14 people flood 13. 8, into the shortterm markets, worried about the Economic Data like jobless claims. Flipside, a steepening of the yield curve. A lot of supply coming online on the long end to fund stimulus measures. Yield hit, to year the intraday record low. You mentioned the tax markets. Thes p 500 tax sector, first to turn positive yesterday for the year. I continued that continue to the day. 10 of theless than record highs going back to february, 2019. Tech continues to be the leader in this market. Individual stocks. As you focus on the latest trends, working from home, buying things online. Rising as people are buying thermal imaging systems, perhaps when people start to return to work. Analysts raising the price target on the potential of a recent acquisition and on a planned acquisition. You. E taylor, thank meantime, as you see, we are waiting for the payrolls report. Not being dragged down by the jobless claims, given that that was expected. The fed bank of minneapolis president boasted about the jobs report saying the unemployment number will probably be Something Like 70 . The real number is probably 24 . It is devastating. Theing us now to discuss,hief Public Policy economist patrick, thanks for joining. Forced pretty much a unEmployment Situation. The cover of Bloomberg Businessweek suggesting this may turn into permanent job loss. What does your analysis show . That is certainly possible. One of the fears we have now is that businesses disrupted shortterm will not survive for long term. The possibility that people will be on temporary layoff but their employers will subsequently fail is very real. A lot of that, the activity or lack of activity, is happening in Industries Like hospitality, eating out, travel, where there will be continuing consumer reluctance to engage until we reach a time when we truly have confidence in a vaccine or curative that will enable people to reengage in those activities. Until that time, a lot of those businesses, which operated on narrow margins, did not have a lot of cash on hand, those kinds of businesses are going to suffer. Vonnie who needs to be thinking about solutions longerterm . We will see Something Like a fifth of the population out of work tomorrow. It is disproportionately affecting minorities and the poor echelons of society. The fed and treasury are doing their best, again, to try and get money out there and keep businesses intact. Let other policy solutions could we come up with what other policy solutions could we come up with . Joseph we are looking at issues now collectively. One of the decisions made the first time around, lets face it, action was taken very quickly by washington standards bold inon was quite terms of the amount of money involved but that having been the decision was to try to ofp people on the payrolls smaller businesses. We are looking at many many Small Businesses that are affected. If you look at the population of businesses that has 100,000 employees or less, or pardon me youreployees or less looking at 5000 businesses. In the financial crisis, you are looking at 5500 banks. Were looking at five times the problem of the number of entities that have to be dealt with. Finding ways to reach those businesses are extremely difficult. Alternatives is to look at trying to support the individual employees, rather than the businesses. We have already taken steps in that regard with respect to very significant liberalizations of Unemployment Compensation programs including the selfemployed, gig workers, in addition to people who were always insured in terms of unemployment but those programs would require businesses lay off workers and so far the effort has been trying to keep businesses to keep employees on payroll. There are real conflicts and real decisions. Vonnie for many workers, there has been delay in accessing a. Not only that accessing aid. Not only that, it ends in july. What is your best forecast for what we will see in terms of unemployment . Poverty, of course, is an annual concept. We wont see any numbers in that regard until really one year from now. Greatclear there is a feel of dislocation and among the issues, the measures tomorrowswill be in Employment Situation report, looking at alternative concepts of unemployment. Include,he measures for example, people on reduced hours, people who are on layoff but may or may not be called back to work. When you add up those numbers, they will be massive. They will be beyond the 20 threshold that some people are looking at for Unemployment Rate itself. There is considerable downside here. It really is an honest. Enormous. Confidence. Umer Business Confidence measures how long will it take for not just say they are competent, for people to act on that . Spend their money and go out . Joseph that is going to take probably a good deal of time. The confidence measures, ironically, will probably show a little bounce because both business and Consumer Confidence in the Current Situation is virtually at zero. As soon as that starts to rise, it will look like an improvement. Point, polling results, people say they are not at all comfortable, only 25 of people overall, say they are comfortable in round numbers, gauging things like going out to dinner, going to a bar, going to a theater. There is an extreme degree of anxiety about the health risk involved. Ironically, in those recent polls, there is significant difference in answers between republicans and democrats, which is quite surprising and hard to understand. Engagerall reluctance to in this economy is substantial and we will need some kind of against thisogress pandemic before people become more comfortable engaging in going out to dinner, going out to the theater, flying somewhere. It will take a long time. Vonnie joseph, do keep in touch. Great to hear of your Academic Work at the conference board. Joseph minarik. Lets get a check on headlines. Mark the president and Vice President havemark the presidee president have tested negative for covid19. They are tested regularly. There was added concern after members of the military who work on the white house campus contracted the virus. The white house declined to identify the service members. One was a member of the u. S. Navy, that served as a valet in the white house residence. A member of the Vice President s staff contracted the disease in march and fully recovered. Warning fora European Countries emerging from lockdown. Be ready to reverse course if signs proof that the virus is making a comeback. A second wave could emerge before september. In spain, the number of people who died of coronavirus in the past when he for hours has dropped slightly in the past 24 hours has dropped slightly. Parliament voted to extend the state of emergency for two more weeks. Than 26,000d more deaths. Global news 24 hours a day on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton, this is bloomberg. Vonnie this is Bloomberg Markets, im vonnie quinn. Americas independent restaurants are anxious, employing 11 million workers, struggling to stay solvent. Nn joins us now to discuss the future of new york city dining. Angie, tell us how you have been trying to stay afloat in this uncertain time, where you have to set up shop, oneday day to the next. Absolutely. It has been a struggle, as you can imagine. Restaurantspendent representing 11 million jobs and it is really tough now. We have had to completely pivot business. My restaurant has always been and we reallyow, had to change that. Were going from having that luxurious fine dining restaurant to doing, cooking food i would cook for my family and shifting to take out and delivery, just a barely break even. Vonnie restaurants really only operate with a month operating income at hand, if they are lucky. A successful restaurant, i am sure you are full every night of the week, yet, it is hard to actually stay afloat. Loan . U apply for a pp angie absolutely. Loan. Apply for ppp a lot of people know that went to big businesses that have far over 500 employees that should never have been applying to begin with. I have not heard back on hours. We are still waiting. On ours. I am hoping this round of funding will go to small mom and Pop Restaurants that actually need it. Vonnie you have been working hard, bringing food to essential workers at hospitals and so on. Obviously, you feel this as an employer and citizen of new york city as well. Do you have to make decisions, not just as an entrepreneur and employer, but also a tenant, you have a landlord, and also, you are creative, a chef. How have you found trying to make tough decisions . Have you made some yet . Questions. Uple lets address business first. [indiscernible] obviously, there are some tough decisions we have had to make. I went from having a staff of 54 to reopening for takeout and delivery with seven, including myself. Now, we are getting readyready [inaudible] , for takeout and delivery. Youre talking about seven people total doing the work 54 used to do. As we look to reopening, there will have to be a lot of changes internally we make as well as what the government will have to mandate for Small Businesses like mine to survive. As you said, the Restaurant Industry is very different in terms of the fact that we are required, we have a lot more employees than we do actual revenue. The ratio between employees to revenue is disproportionate, more so than any other industry and a lot of that is because the laws that are put into place, whether it is 8020 or overtime, all these things, it is very antibusiness. We are paying more money. Vonnie there is the potential for a Silver Lining to be some regulations could be changed after this. Again, it is hard to know. I know you are concerned about what reopening looks like. Talk to us about your work for robin hood. They day on monday. Seasonmination of the and robin hood focused on the Coronavirus Impact this year. Angie it is such a fantastic foundation, founded 1988. Pandemic,ays of this they were able to raise 40 million. Such a huge amount. What i think people dont know is that there is 2 million new yorkers going hungry today. The number it was 60 days ago. Codes, theghest zip highest number of coronavirus, covid19, you know, the average customers income is 26,000. There is a huge huge gap. For us to be able to raise fundsess on may 11, raise and help our fellow new yorkers, you know, that is a cause that is well worth it. Vonnie we have to leave it there but our thanks to you and the people who work for robin hood, as well, trying to keep your businesses afloat and your employees well being to mind. In new yorksnn west village. The bank of england shows willingness for stimulus. This is bloomberg. Vonnie bank of england held Interest Rates at 1 10 of a percentage point, signaling it is set to boost next month. We spoke with the boe governor earlier. We are keeping options open. I am clear. We are keeping options open. My colleagues want to do more now. Other members thought it was sensible to take in the next meeting, when we may have more info. Are we any closer to negative rates . We are not ruling anything out. It would be unwise to rule anything out. I dont want to say we are near to negative rates but we are not ruling anything out. Francine under what circumstances would beget negative rates . Andrew it is a complicated question. You have to view it in the context of the times and the context of the financial structure. What would be the consequences . I want to caution, we are nowhere near. Francine you assume a recovery in 2021. Why are you more optimistic than the ecb . Andrew we are all using scenarios. I want to be clear. All of us are finding there is a much bigger gap between the judgments and decisions we are having to take, which is by the way, the first time really, and any inflation report, we have published a forecast of such. These are very much scenarios to guide us. I was looking at the ecb scenarios. Its its frankly in the middle ground of what they published. Francine what does it do to thinking if we have a slowdown that is not as severe this year, but then we have a much worse number in 21 . Andrew we would have to reevaluate. There would be a new scenario we would use. You have a gradual lifting of the lockdown, and a certain quarter this year, a further assumption that people wont voluntarily, being quite cautious about the way they reengage. Obviously, if the disease evolves in a different way, we will have to come back to that. Vonnie Andrew Bailey speaking with francine lacqua. Aming up, we will speak with Pharmaceutical Company reporting strong earnings, the ceo, next. Lets have a look at how markets are faring. The nasdaq is positive on the year, about 9000, 1. 7 , on the year, up one third of 1 . The s p close to session highs, being led higher by financials, Paypal Holdings as well, up 14 . The dollar index below 100. The British Pound Sterling just turning positive and the euro. This is bloomberg. Mark im mark crumpton. Lets get to the first word news. U. S. Airport to grady screeners will be required to wear masks. Transportation security administration, the tsa, is expected to make the announcement as soon as today. Have tested positive for covid19, including six that have died, according to their website. The use of masks by employees has been voluntary. California is projecting it will have a budget shortfall of 54. 3 billion because of economic devastation caused by the coronavirus. The announcement today is a stunning reversal for a state that had a 21 billion surplus one year ago. California has been under a mandatory stayathome order since midmarch. The governor calls the numbers jawdropping. More signs at that europe is starting to reopen, the u. K. Said to ease its lockdown on monday with more freedom for people to leave their homes, but no major changes are expected yet for businesses. In germany, restaurants and reopen. Ll be allowed to the netherlands will begin a reopening of business starting on monday. And the u. S. Supreme court is tossing out convictions of two allies of Chris Christie for their role in the 2013 George Washington bridge lane closing scandal. The socalled bridgegate created traffic jams in new jersey to punish the citys democrat mayor for not endorsing Chris Christies reelection bid. 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. Im mark crumpton. This is bloomberg. Vonnie welcome. Amanda sherry we are joined by our bloomberg audiences. Here are the top stories we are following. Ground, withaining the nasdaq on track for its fourth consecutive days of gains. This as u. S. Jobless claims top 3 million for a second week in a row, bringing the total to about 33. 5 million in the wake of the coronavirus pandemic. Top negotiators from the u. S. And china will speak over the phone for the First Time Since a trade deal was signed in january. Sources saying that they plan to talk as soon as next week. Amanda shares of tesla surging after reports that the giant has maintained is 2020 profit outlook, as drug sales rise. We will go through the details in a moment with that ceo. Amanda a look at the Broader Market now. In the context of those numbers, we are also seeing stocks rising across the board with s p 500 led by energy today. Oil moving higher, that has the Energy Subgroup on the move. But every group in the s p 500 is moving higher today. Strength out there for pockets, including financials in materials, all moving higher. It is worth noting that the two year treasury is hitting a record low, close to zero. The fed funds future pricing in negative rates. So we can see the yield curve getting very, very low at the front end, with the price of gold moving higher. As mentioned, Teva Pharmaceuticals beat expectations in his most recent quarter, part of the reason is that drugs it provides and that is helping with the pandemic. Its ceo and president is visiting us from amsterdam. Thanks for being with us. Kare nice to be here. With a lets start picture of the quarter and how you are affected by covid. Some of the drugs are in Strong Demand. Did you see troubles or disruptions getting supplies to the market for those places that needed your drugs . Kare there were challenges in terms of manufacturing, logistics and so on. I am proud of our company, that we did our best to keep supplies up for the nearly 200 Million People that we serve every day with high quality medicines. We are the biggest supplier of medicines to the u. S. And europe. We have been able to keep all our facilities safe for our workers, but fully operational, so that is the background for the strong results in the first quarter. Obviously, see, Strong Demand for hydrochloric clean, respiratory drugs for hydrochloric clean and respiratory drugs, were you able to have drugs for that . Kare we were able to donate to the u. S. , and countries in europe and asia and so on. We did not donate everything we are asked of, but we made big donations and we worked closely to secure that supplies actually reached the people that needed it. We are not just talking about hydroxychloroquine, we are talking about those medicines in the icus, a whole range of products relevant to this situation. Sherry what about the fact that there has been concern about hydro clock Socorro Quinn and its effects on covid19, whether it is effective or not. Will you continue to provide that even though we see concerns . Kare i am not an expert on the clinical effects. I probably do not see much more no much more about it than you do. It is up to the Health Care Professionals and regulatory authorities in each country to assess whether they are interested in using this very old drug or not. U. S. Youell us, in the have litigation around your opioids, are you going to see any impact on these litigation timelines given that the pandemic is raging at the moment . Kare yes, we have seen that already. Agreement a framework at the end of last year. Then there was a trial that was supposed to start in new york and we are hoping to finalize everything up to the date of that trial, but that has been postponed and it has not been rescheduled yet. And there is a tendency in these kinds of settlements that they only really finished and it gets signed as you move closer to the next action. So for now it is a bit of a standstill. We still have a partial dialogue on the practicalities of our donations of products for people who suffer from drug abuse, and i am optimistic that people will see it is to the better of the american public, and those suffering from drug abuse, that we actually reach in agreement where we can start helping people rather than having hundreds of trials over the next 10 years. One of the questions for a company like yours is the pipeline. What have you got in the pipeline that you have told investors about . Kare right now, the most exciting thing is a project we are doing together with region neuron. Regeneron. It is for a product that will give pain relief for those with arthritis. We expect to get phase three Clinical Results in the coming six months. That is very exciting. It sort of plays into the problems we have with pain medication. There is a risk of abuse with pain medication, but this will be a biological product that you inject once a month or once every two weeks, without risk of those issues. We hope it makes it through the phase three. We will know more later this year. One of the things we have seen in the wake of the pandemic is governments concerned about the supply of available drugs. We can imagine that when vaccines come into play, that will also be an issue. Do you worry about the supply chain and how governments will treat this whole sector . Kare this is a very interesting issue, not the least for the united states. It is a fact that during the last 1020 years, all production of sales have led to the u. S. , and has basically moved to china and india. Now it is a political decision whether you want to secure the stability of supplies based on manufacturing in europe and the u. S. , or whether you will leave it in china and india. It is not something that we as a company can decide on. We have a Strong Manufacturing base in the u. S. With a lot of investments. We also have kept api manufacturing in europe. But if we are going to bring more back to the u. S. And europe, it will take some political reform in order to do so. Sherry the results are showing generic drug sales in north america fell slightly this time around, so given the covid19 pandemic what outlook do you have for generic pricing and sales . Kare the covid19 is not really affecting the pricing or sales. Hydroxychloroquine is a cheap product, and we have donated most of it. We did not make money on the covid19 sales, and we do not expect to do so in the future. We made it clear that we are not taking any list prices increases in connection with covid19, so you should not see this as a major factor in our sales. The sales we had in the first quarter, it was medicines and products in europe. That was probably the consequence of people getting nervous about lockdowns and buying extra things for their medical care. So we will probably see a reversal of that in the second quarter. There was no major move in the u. S. In terms of our sales. , thank ok, kare schultz you for joining us. He is not an expert on the hydroxychloroquine, as mentioned, but he has been donating the drug. We are getting the latest research in the new england journal of medicine, that this drug touted by President Trump did not cut the ventilatory use or death rate in this study. As tensions between the u. S. And china continue, trade negotiators meet for the First Time Since the deal was signed to try to implement phase one. This is bloomberg. Sherry this is Bloomberg Markets. The Worlds Largest hotel companys ceo says the company is confident for the longterm, but there are uncertainties about how the world will meet the lockdown. We spoke to him about when he sees demand and revenue recovering. It has been an incredibly challenging time for this industry, on president ial as people have said, and i am proud of how we have reacted around the world to look after customers, the safety of our colleagues and work with our owners. As you noted, we had a good start in january and february. 80 down in april. That is a fairly consistent trend around the industry. So clearly it is a challenging time. We have limited visibility Going Forward on what will happen in terms of revenue growth, because it is contingent upon what happens with lockdowns, what happens with hotels being allowed to reopen in many countries, and what happens with travel. But it is a longterm investment you make in real estate and hotels. We have been through challenges in the past, and it is a resilient business. So, we are confident in the longterm. And right now, making sure we are positioning our company to get through the next few months and the next challenging timeframe, working with owners around the world to make sure that they get through this. I want to ask about revenue per available room. You talked about going down in the first quarter. Ubs suggested that rev par will not return to 2019 levels until 2024. Clearly nobody has a crystal ball, but what are your expectations given about what you said when you see Domestic Travel returning for the international . I was on a roundtable on zoom the other day and we said all of our crystal balls are murky at the moment because nobody knows. So, we are not really sure when revenues will recover. We do fundamentally believe, having been through the financial crisis and through 9 11, there was real shock for a period, then the industry did recover. After 9 11, nobody thought they would get back on airplanes, but then we got used to taking our shoes off and the increased security and not meeting loved ones and gates, and then we had a record decade of travel. The same thing happened after the financial crisis. So i think it will come back. It will take time, though. Think about how it will progress, you will have Domestic Travel come back before international travel. You will see a slow growth of meetings and events over time. And then it will ramp back up over the coming years. Somebody asked me the other day, a good friend, is this the end of travel . Is Technology Going to replace this . No, they may replace conference calls, but not replace the big meetings and events, and it will not replace leisure travel. So it will come back over time. Again, we have limited visibility, but we are wellpositioned to get through this for the next few years. That was keith barr the. Trade file saidna and the u. S. Are this because soon as next week about implementing the phase i trade deal. Our u. S. Economy managing editor Peggy Collins joins us. This obviously was of the utmost importance to everybody pretty pandemic, it is still incredibly important economically. So what kind of progress are we hoping for . Peggy that is right. Essentially, we have reported that the top u. S. And china trade negotiators it will speak as soon as next week. So this will be the first time that the chinese vice premier and the u. S. Representative, robert lighthizer, will speak about the agreement signed in january and went into effect in february, and basically on the progress of it. Part of the deal was at they were supposed to talk a couple times a year to get updates on the progress and what we reported at through our reporter Jenny Leonard earlier in the week is that it looks like the purchases, particularly on agriculture and energy of u. S. Goods, are behind, in part because of the coronavirus. Arehat is part of what we trying to continue to figure out, which is how much of the damage from the virus is really going to flow into chinas ability to make the purchases it promised. Sherry what about the willingness of beijing to make this work and abide by their commitments . Peggy china has said repeatedly that they are trying to abide by their commitments. Obviously, the world has changed, as well as both nations, and just a matter of a couple months in terms of industries being shut down and that affecting the ability to purchase goods on a country or individual level. As far as our reporting has shown, china is saying it plans to continue to abide by the rules of the deal and trying to purchase at the amount of goods they said they were going to over the next couple years. Amanda peggy, thank you. Sherry that was the latest on chinau. S. Trade. Sources telling bloomberg now the dow is exploring the sale of on the u. S. Gulf coast, and six railway hubs as it refocuses on chemicals. Withve seen dow pressured the outbreak of covid19. They had been downgraded several times this week already, including by ubs. Now, we are hearing the company has tappe a Financial Advisor tod. Toy move across the industry focus on manufacturing chemicals. We are seeing them extend gains after exploring the sale of some assets. Coming up, states across the u. S. Start to reopen businesses. And they are scrambling to properly clean and disinfect their locations. We will discuss with the ceo of service channel, a Company Serving more than 400 brands 500 brands worldwide. This is bloomberg. Amanda im amanda laying lang in toronto. As retailers look to reopen across north america, the complexities are daunting. The city of montreal has been delayed. The problems of getting back to business are Good Business for servicechannel. The ceo is with us now. Tom, in terms of what you do to help businesses this is a huge prospect, because you help people start with new locations. And they are basically starting them all at once here. Thomas first of all, thank you for having me on. This is no small task. We are a Technology Platform that helps retailers, restaurants and Grocery Stores manage and maintain operations. We serve about 600 brand name customers that you know and love and to shop at every day across almost 400,000 of their locations, so we have a pretty good groundlevel perspective on the reopening process. It is a daunting task. Amanda in terms of what you can do to help retailers, one major aspect is that the safety piece of it, like tracking. How can you help a retailer get back to business faster . Thomas think about the magnitude of what they are dealing with. In a good year, they will open pero 10 of new locations chain, now we are talking thousands, millions of locations with a moving target and less staff, because they have let go or furloughed folks. We provide them a platform to help them be flexible and manage and measure the cleaning aspects, as well as other aspects at those locations. He used to clean the clean locations, now you have to clean the disinfect. You have to redesign spaces to make sure that you have good social distancing, squeeze guards, reconfigure the dressing rooms, and you have to protect employees. We provide a playbook for customers to be able to do that. Is flexible it is flexible because there is no blueprint. Our motto is cool heads, warm hearts and clean hands. Sherry that is great. Explain a little bit more about your playbook, because we want to know how will a post pandemic world change the way that these stores operate. Tom exactly. I will give you a good piece of data. We are tracking the reopening in georgia, as an example, and we believe much like the testing for covid19, the answer lies in the data. We are showing locations that will be opening in georgia have increased a very cleaning and disinfecting by 110 over the last year, more than double the instances of cleaning and disinfecting. But we have challenges, because the number of work orders that independent contractors have been unable to fulfill because of they are being stretched has also doubled. So customers are being asked to reopen to Higher Standards with less people to help them. It is quite a challenge. Sherry we have seen on the retail side of things how there was a shortage of disinfecting wipes and supplies. What are you seeing on the business level . Tom well on the business level in terms of, being able to service those stores, there is sn expected spike in folk needing to come out and clean those locations and a shortage of technicians to do that. We can see quite a bit of constraint in terms of people getting out there to do the timely disinfecting that these institutions need in order to reopen. Sherry thank you for joining us today. That was thomas buiocchi. We continue to see the market rally at the moment with s p 500 gaining 1. 5 . This as there is a little bit more optimism about the u. S. And chinese trade negotiations starting as soon as next week. From new york and toronto, this is bloomberg. These days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. 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. It is 2 00 in new york, 7 00 p. M. In london. I am scarlet fu. Romaine and i am romaine bostick. This is Bloomberg Markets the close. Another interesting day on wall street. A solid rally across all three major indices. A little bit of optimism with the Global Economy reopening. Thattle bit of optimism the fed could take rates below zero providing a backstop to risk assets. Then you have the reconnecting line between u. S. Trade negotiators and china. You add that up and get a risk on sentiment. This comes against the backdrop of the day where we saw 3 million more people in the u. S. Added to unemployment rolls, taking the number two 33. 5 million since the coronavirus shutdown began midmarch. Tomorrow, we will