Volume on the s p 500. There was commitment on this rally. Taylor start with the chart i am showing you in my terminal. You asked about hedging activities. Look at this chart, or the lack of hedging. People have an minding bullish call options, but not a lot of bearish put options. They are down very low. Buying puts could have cost you a lot of money. That is why we are seeing this rally. I want to look at the individual movers, American Airlines jumping after a 40 gain yesterday. They are seeing a 70 increase in demand. Suspending in some markets because of demand. It was up 100 at one point earlier. I was chatting with remain, this is a romaine. Typically an equity is worth nothing but if you are optimistic on travel, you are buying the shares no matter what they are worth. Crude approaching 40 a barrel and tiffanys, a stock the three of us continue to talk about, up 6. 5 . For will maintain their bid the jewelry maker, but there is a lot of debate. Lets show you this chart. All of the rally today means the fed Market Participants are no longer expecting negative rates. It is now up. Tablegative rates off the . People might be surprised. Caroline who knew you could break with what europeans have been doing so well for so long. I thought it would catch on and be an international trend. Romaine it still has a way to go. This is a market that has confounded a lot of folks. Tom,ve been talking with managing partner and the head of viewers ne of our we are a realtime network and we are for the people. They have a question for you. They want to know whether you think it is a Short Covering is a major factor in this rally . Is a great question. All realities from the bottom start with Short Coverings. I think that even as recently as a week ago, Short Interest was really high. The moves in the market like today, it is not just Short Covering. It is lot of the dry powder out there because there is 5 trillion of money market cash on the sidelines. Buy 20 of thed s p. I would say there is more money decidingndecided than you know what, the market doesnt look like it will roll over again. Im sitting on too much cash, let me allocate i think that is behind this. Powder, 5ry trillion in the money market, 2 trillion in equity always great to get you on with your data and lots and reaction plots and reaction. Tom lee who has got pretty bouffant hair at the moment. That does it for the closing bell. What did you miss is up next. Our next guest still on the board of Many Companies like uber. She talks about reaction from big business. This is bloomberg. Caroline i am caroline hyde. Taylor i am taylor riggs. Romaine i am romaine bostick. Caroline the jobs report sending us higher by 3 on the dow jones. The s p at its highest since february. The American Labor force rebounding, signaling the economy could be turning around faster than anticipated. Patientcross the facing another week of protests. The need for leadership [indiscernible] ceo ursula burns. We got to get strikes to the number straight to the numbers. Taylor it is the number that is driving the markets, not the reverse. Rebounding unexpectedly in may. Employers adding 2. 5 million workers back to their payroll area the Unemployment Rate falling to 13. 3 , below the expectation of 19 . Flipping up the board, there are serious Silver Linings in this report we need to talk about, one of which is the ratio of black unemployment to white unemployment which has fallen to a record low. This report showing a different picture. Black unemployment rising slightly of course while white and hispanic are falling. Ass shows the mixed picture we discuss inequalities in this country all weekend in the last few weeks. I want to bring in a senior economist and director at the policy Economic Policy institute , to bring us more on this perspective. How surprised were you . Should we have been surprised . I was very surprised. I am not a macro forecaster. I look at what other people are expecting and adopt those numbers as my expectations and everyone missed this. T was surprising in retrospect we should not have been surprised because we knew that many states are using restrictions are easing restrictions. Areine what type of gains we seeing . Are these job gains that will be lasting and enough to drive us back to a healthy labor market, or is there something more structural . Heidi that is the big question. One of the things that is important to keep in the forefront of our thinking about this is the hole we are in is so deep, that even with jobs rebounding quickly, we are still going to be deeply in recessionary territory for a long time. To put numbers on that, by april million jobs in this downturn. We got 2. 5 million of them back. We are still down 19. 6 million jobs. 13. 3 arkable, the Unemployment Rate, it does underscore how bad things are. That is the worst outside of, aside from april, 13 unemployment is the highest we have seen since the great depression. Caroline it is important context, that this is a terrible set of numbers. It is less terrible than it was before. Rising. Boats are something you are speaking to, not only in certain sectors, state and local government are not improving and not all breakdown in terms of what your race is is helping, whether you are white or hispanic, you have seen a tick up in employment, but not if you are African American. What will we see to ensure all boats rise . Heidi april we saw the black Unemployment Rate and the white Unemployment Rate rise at equal rates. That was surprising. Often the black rate rises more in recessions. There was an avalanche of job loss, and it scooped up white and black people. Once the recovery starts going, who is really going to reap the gains . We are starting to see the inequities in the recovery. White people saw a big drop in their Unemployment Rate in may and blacks did not. One of the key things we need to do this point is to take every action we can to get the labor market back to some semblance of health. It is weird to connect some of these thoughts, but one of the things that will drag on the recovery is the fact state and local governments are going to have to start making massive cuts that will delay the recovery by years and years if the federal government does not step in and fill in budget shortfalls. That is a thing we should do to get the economy back on track. We need to make sure the provisions that are in place provisionsthe relief because of the virus, we cant let them expire at arbitrary end dates. Thanreport was rosier people thought. One of the problems is they will say maybe we dont need any more aid, the economy can take it from here, and that could not be further from the truth. We need to make sure relief stays on while the economy needs it. Romaine we will have to leave it there. Heidi schuerholz, former chief economist at the u. S. Labor department. Larry kudlow, International Policy director in the u. S. , we heard from him here earlier. We have taken some time off from legislation even though we are talking to both parties, Kevin Hassett and i have done bipartisan Conference Calls and there is always conversations among their leaders and our leaders, but we wanted to assess the economic story and to see trillionoriginal 3 package was going to do for the economy and let the Federal Reserve develop and evolve its various lending facilities. We will come back i reckon after july 4. We will have a good session discussion. We need policies that help longterm economic growth. The rescue package was helpful. The Payroll Protection Program probably saved 50 million or more jobs, 510 billion. The story of todays numbers is the temporary layoffs have gone back to work, 3 million. That is partly a direct function of the ppp program and the tax rebates and the unemployment health. I dont want to rush into anything. Neither does the president. He mentioned we would have bipartisan talks. He is sticking to the payroll tax holiday for the workforce which is a terrific idea and we are looking at a number of progrowth options inside the administration. Lets talk about the enhanced unemployment benefits. What is the discouragement concern people would be discouraged from going back into the labor force . We have not made a final decision yet. I cant get ahead of the curve. I would say there was momentum to reform the 600 plus up. There are ways to get away the disincentive around the disincentive problem. He did not show up today, but it is early. We may reward workforce for going back to work. We are looking at a number of options. I dont think todays numbers was a onetime thing. By may 12ss openings was less than 50 small business. The chamber of commerce down here is estimating now in early june nearly 80 of Small Businesses have reopened. That means more and more people who were furloughed will get back into the labor force in june and july and so forth. There has been a lot of green shoots popping up, whether it is the mobility, the driving, the big surge in Housing Price applications and other indicators. I think the economy, the contraction probably trough in mid april troughed in mid april. I think we will have a sharp rebound. You will see it in the second half of the year with 20 economic growth. Jonathan i hope we see serious growth. I dont one to get into the forecast. This economy can make people look stupid quickly. I want to understand, how will you know you have done enough on fiscal stimulus in the next month . What are you going to be looking for specifically to tell you whether you need to do more or not . We will look at the general trends. We try to track every number imaginable, particularly the highfrequency leading indicators. I will not hang my hat on this, but the apple mobility index is widely used on wall street. That is an indicator of people getting out and traveling, looking for directions, most of it is driving. That is not something we would have thought about, but now we are looking at it. I am looking at traditional indicators like Mortgage Applications or new business startups, both of which are rising sharply. The traditional indicators on jobs, income, sales and so forth. We will look at the panoply of numbers to get a feel for what is working and where the trouble spots are. Caroline larry kudlow speaking to Jonathan Ferro on bloomberg. Oil rallying ahead of the opecplus meeting. We will discuss the oil markets. This is bloomberg. Caroline there has been a risk on mood to the market and the week. Commodities are higher. Lor i will start off with hitting the economic recovery. We do that here in the terminal with copper to gold ratio. Copper rises, gold falls. Sincenow the highest march 17. Correlation with the 10year yield continues, seeing the tenure at the highest since march 2019. Pushing forward to the opec meeting we are waiting for this weekend, crude almost at 40 a barrel, something we have not seen since march 6. We are joined by ed morris, head of Global Commodities research at citigroup. Do you think the days of 30 a barrel are over . Is that realistic . It is realistic that it will get to that range. The market is floppy at the moment. It is based on a bunch of things that are kind of misleading. A lot of the change in differentials between different price and uplift in the has been china buying. Chinese imports may be touching 14 Million Barrels a day, 3 million more than in april, 2 million more than the record level. They are not consuming much, but they have been eating up oil at a low price. That should let off. We think demand recovery will be slower. We are seeing demand for crude is not back to anything like what it should be. It is 5 Million Barrels a day lower. And we have an unbelievable amount of floating inventory and inventory on land. Frompec cuts and the cuts the u. S. And canada and other countries are real and meaningful. This is too soon. Romaine we focus a lot on what is happening with opecplus, but in a bloomberg story today we quoted people from different places think they are waiting to restored their wells and ramp up production going into the second half. If we see a meaningful ramp up, does this put some of the gains we have made in oil prices at risk . Ed it might, but you have got to look at it in terms of timing. We had a bunch of Healthy Companies that shut production and they are going to bring that back, in the u. S. You mentioned some of them. It is hard to know how much production has been shut. The companies i am talked about, shutting in, that was 2 Million Barrels a day. That is one factor. The second is that drilling has collapsed. 65 . S collapsed more than this week we had oil rigs falling close to 200 rigs. We had 900 rigs in operation looking for oil a year ago. At this rate we have steep declines in u. S. Production. We need a trigger point to get drilling activity going again, bringing back production is not the same as triggering new investments in drilling. We dont think that will happen until we have two good months of 40 oil. Maybe at the end of the year, and it wont come back into the market until the middle of next year. The third is where prices have been and still are we have a large volume of low flow conventional oil in the u. S. , called stripper wells. When they have to go into maintenance, the cost of getting them back is too much. The question is how much of that will be lost permanently. I think it will be half a Million Barrels a day. In the brief 2016 recession and drop in oil prices, we have lost 160 barrels of oil a day. It is vulnerable. We have to wait and see what happens on the rebound. Undoubtedly companies that are healthy particularly in the permian that cut out production will be bringing it back. Caroline talking about the supply side, the measure, but there is always the demand side. Oil and the other commodities you follow, being kind of commodities are you seeing it reflecting the reality of what he economy is telling us . Many say equities are out of whack. They are painting a future looking story. What are commodities painting . Ed it is an interesting question because normally commodities reflect the here and now. We distinguish them between equities which are forwardlooking and commodities which are reflection of current byplay interchange between supply, demand and inventories. As we learned in the market, since the great financial crisis, commodities frequently trade together with equities even though they are not expected to. If we look at copper, which has had a significant runup, that significant runup has been pulled the equity side more than the realities of the copper market. Is some oft there that. There are expectations involved in copper because of what we see in the chinese economy. There is where the real question is, what we are seeing in the chinese economy, is it sustainable, is it a collection of factors we find misleading . We see it across all commodities related to china. It is a bit of weight and say. We know the chinese economy and see. Bit of wait and we know the world will not be in recovery until china and the u. S. Are in recovery. The big jump that pushed the markets today, that we have seen in employment, however significant that might be, is a long way away from getting back to full employment of people in the Services Sector in particular. Caroline thank you so much are spending time with us. Much for spending time with us. We will discuss the latest on the unrest gripping the nation and how companies can divest senior management. This is bloomberg. Berg. Caroline welcome back. I am caroline hyde. Lets get you straight to first word news with mark crumpton. Caroline, thanks. Cities across the u. S. Are bracing for a second week of protests. Between confrontation new york police and a protester has gone viral. The video shows an elderly man lying on the ground with blood pooling from his head after an officer shoved him backward. The city of austrias mayor has ordered an investigation and suspended the officers without pay. Citys mayor has ordered an investigation. The cdc says a startling number using bleach on food or misusing household cleaners to protect themselves from the coronavirus. Cdc said that the more than a third of participants in an online panel were engaging in highrisk haters like inhaling or ingesting cleaners. High risk behaviors like inhaling or ingesting cleaners. The latest study of the antimalarial drug President Trump has touted for battling the coronavirus shows it has no effect for hospitalized patients. Oxford University Published the asults of what is called recovery trial for hydroxychloroquine. Researchers say it rules out any s using itr hospital for duration. The u. S. Said china had violated rights by limiting flights and would only allow two flights per chinese airlines. Chinese airline said that they would limit u. S. Airlines to one flight a week each. Global news trey flowers, powered by more than 2700 journalists and analysts in more than 120 countries. Global news 24 hours a day, powered by more than tweet 700 journalists. I mark crumpton. I am mark crumpton. Caroline we have an exclusive interview about the coronavirus package. Such areaction i saw to bold and i repeat initiative because we are talking about the European Commission will go to the markets and borrow 700 euros, issuing that to finance the recovery confronted with this proposal, Member States reacted in different ways. But i have to say nobody slammed the door in front of this. Not only Member States, but the majority of Member States are in a knowinging position and how the union is in the negotiating position brings, in the end, an agreement. When you look at what the Commission Proposed to refinance requiresment, it again joint taxes, financial transaction taxes, but in the past, it was so difficult to agree on. Why do you think its different . I would say two things. One is the repayment of this financial tool will be, in the the maturity will be very long and repayment will begin in 2028. And in 2058. And you know that we have very cheap money now in the markets. And so, this will not be such an important burden for our finances. We needaid this, yes, to strengthen our own resources and i think we will be able to do this, especially in the. Nvironmental side we have teedo groups two groups of resources. One are the groups discussed at , one on taxation and minimal taxation, and then we have the issues, the commitment to find or at least try to find a global solution. Then we have the Environmental Energy taxation. I think that having the discuss the green deal will have a good effect on this kind of taxation. Francine commissioner, what kind of timeline do you think these proposals will be agreed on . I think its possible that European Council of the Member States will come by july by the way, july 1, we begin presidency of of the council from germany, and this will also, i think, help the agreement. Then we need the approval of national parliaments. Few monthsl take a more. What is clear, being linked to the budgets of the union, it january,he beginning the first of january. Romaine that was our exclusive conversation with the eu commissioner of financial affairs. Coming up, another take interview, ursula burns, the former xerox ceo. We will talk to her about the broader business environment. Thats coming up next. This is bloomberg. Labor data for today surprised on the upside for some. The unemployment for africanamericans coming to the highest since 1984 in may, and is coming as qualms about the socioeconomic inequalities in the u. S. Continue to mount after george floyd in police custody. Here to talk about this, ursula only, still one of the black women to ever home of fortune 500 company. Urszula, its great to have you with us today. Ursula great to be here. Caroline how worrying is it to you they we are seeing the disparities become worse as we go through the coronavirus devastation . Ursula it clearly is at the top of my worry list, the top of my concern list. I entered this discussion, this debate at the start of the , optimistic. Optimistic about may be coming out of this dysfunction time in a better position than we entered. Meaning that people, companies in particular, paid attention to what we now call these essential workers. We start to understand what in essential really is. The guy who delivers food for us. The guy who stocks the shelves. Knowing thathat there are black and brown people who work on the lower end of these is your economic employment ladder, i am hoping that we can use this time, this instruction, pandemic, racial unrest, continued socialeconomic imbalance to reset the whole conversation about how black and brown people assisted on the employment ladder but how Companies View howe essential workers, they pay them and marshal them up the letters. Im hoping that there will be an opportunity. Areline im glad you optimistic. How optimistic are you about statements being made by corporations . Im interested in particular dust you think that they feel authentic across the board as it stands . Many companies, many more than i have seen before, the vast majority are speaking out, many more are starting to about the state of phase. In this they are starting to realize this is fundamentally unsustainable. Its definitely unfair. Comehe tilt is starting to off, its starting to go out of balance. And its really important the rhetoric in the administration, which is generally negative and definitely demeaning, that has to be offset by action, real action, funding groups, changing employment practices, being affirmative and how they actually address their employment means, being affirmative in hiring black and brown people, ring affirmative being affirmative in how they assess the company at the board level. Without that passion and that drive, i think the companies are starting to realize more and more, they are not making progress. Its not sustainable. The good news is theyre going to have to do something. This is not enough. If we get enough of a crescendo of voices, maybe we can keep the action on. This is not the first time a black man has been killed by a policeman. Its not the first time. It happened before that and before that and before that. I am hoping that the sacrifice does not gon unrequited, unpaid back. It is important that company stand up and say we have solutions. Romaine you mentioned, you alluded to the fact we have been here before in this country with the killing of a black person at the hands of police. What makes it seem different to you that the outcome of this is going to be different and more positive than it was in the past . Because the number of the broadbased coalition that is now starting to speak littledont get my optimism as overjoyed optimism. Dont get me wrong. I do not believe i am hearing today will actually involve actually mean change. Involved and stay involved. All of the news media, the corporate voices in america will have to stay involved to see true change. The reason i am optimistic is people are getting fed up with the current state of play. Cannot anyeople who longer sit back and say we will go back to the way it was. The way it was was blown up with the pandemic. We have the ability to build a new way. I am hoping we take this opportunity to start thinking about that. Fix everything. We will not fix inequality in america. But we have seen it very clearly in front of our eyes now. But we have also seen the impact of disregarding the inequality. I am hoping that we are smart enough to understand we have to change this rhetoric to get a better outcome. The administration also, in some ,razy way that would be hidden the rhetoric out of this administration is so negative, so out of tune with a lot of americans it is causing them to sit up and listen. Thats not the way we want to actually think about our future and our world. Thats not the way we want to be engaged in society. , people arey starting to get unsettled with the status quo and start to engage in, to know that they are responsible. Its not only governments like and do this. Its not only business that can do this. Who can of us absolutely work together. The fact that more black and brown people are unemployed is not surprising at all. The fact that more black and brown people are killed by police is not surprising at all. We dont have to be reminded of that. What we have to do is change it. I am hoping that business now starts to lead the way. Businesses with localities in cities localities and cities and states. I am not sure how much action we will get out of the federal level, but i know that cities and states are interested in having a better life for their citizens. So im hoping they can get this kind of articulation, debate, and discourse that we need to come to a better solution. Now, i am engaged. And im hoping a lot of other ceos are engaged as well. If we dont lose that energy i think we can get some positive play on this. Romaine there is a lot of energy. Are you worried that if you dont have the u. S. Government working in concert with some of those ceos to make these improvements and to an extent ill say this very bluntly may actually be working against it we go back to other crises we have had, even Republican Administrations come in next and, bush, reagan, you your government pushing for the same changes that we heard from the public. It does not appear we have that right now. It terrifies me. It terrifies me. I was thinking, too, i was speaking to ceos i was speaking to marketing. This is not the way it is supposed to be. I cant tell you i am happy with the way that we clearly have, its on was like a cancer. We are fighting against ourselves. Bodies isin our fighting against ourselves. We seem to be in the state were fundamentally, the u. S. Administration doesnt, is not in harmony, up more than not in harmony. Doing counter purpose to progress in this area. I kind of understand where the president is coming from. He has been there forever. Little surprised by the Republican Administration and how they are letting it happen and letting the fabric be worn apart. And this nation has been around 278 years. Ears we are better than this. We are better than this. We cannot have a country where 60 of the people dont participate. Dont participate. It just does not work. We are not a dictatorship. We are not we are not communism. We are not, a robber baron nation. We are america. The whole point of this country is we work together. America, where you make your way up. But you can have a block at birth. We are blocked at birth and we are brutalized by the very people who are supposed to be protecting us and serving us. Not all of them, but enough. It makes it very difficult for me to send my daughter and son out i send them out with the normal African American training. Be careful, guys. If you run into a police person, make sure you do what they say, whatever it is. What kind of thats the nation we live in. Where companies have to start to speak up. They have to say, thats not the kind of policing we want. There are a lot of people who do it well. Governors have to speak it speak up. Cities have to speak up. They have to say, what we want is a real nation here. A more perfect union. Thats what we all want. Its not impossible. We are getting best we were getting closer and we seem to be sliding way back in just a couple years. A nation thatalso has more than four black ceos running fortune 500 companies. See it, you cant be a. Interestingly, you were on the exxon mobil board, i believe they were issuing a statement. How much can you help drive change on the board where you sit and him we see more executives in these positions of leadership who look like you . Ursula one of the great things about being who i am is when somebody wants me to be on the and they are about to say no, they say yes. On, all ofrds i am the organizations. Along with the others on the board for diversity and inclusion, true d and i. Big i. Bog d and think about this. There are 4, four, africanamerican ceo of ceos. i am a product of a diverse board. Werner jordan literally was instrumental. We know how this works. Vernon jordan. Its not easy. It will take affirmative action. Not affirmative action the old policy, governmental program, but affirmative action by companies. Topanies that put their mind do it and they will have to continue to help drive the companies to be more diverse the ridge just like they are trying to do with women. Just like they are trying to do with gays and lesbians. Diversity in presence. We have to continue to push. Part of my job, part of my role on the boards i am on, all of them, is to make sure they hear both sides. , if it does not go to balance, i will not be on the board anymore. Have seen a lot of companies with these Diversity Inclusion initiatives. A lot of companies have made the data from these initiatives public. We have seen an increase in hiring, but one thing as well, some of the companies have had trouble retaining some of these hires, whether they are talking about blacks, hispanics the idea is they can get these people in the door some of the environment they walk into is not necessarily enough to keep them there. That is where the inclusion part of that diversity and inclusion comes in. Tos, if you dont know how get outsiders, it will be hard to start doing it. Get organizations that will help more thanunderstand just getting them and bringing them in the door, but how do you create an inclusive environment . Why i bring diversity to diverse city and inclusion. While they stay . Why dont they stay . They dont stay because they dont feel they belong. I have said this for a long while. Companies are made by white men. But when you walk in the building you see desks, you see all the stuff that you see, but a malel what you feel is environment. We have to change a very white male environment. Inclusion is about rounding some of those edges and making it more possible for people to be who they are in the Company Versus having to become like everybody else in a company that is generally white men. That is why inclusion. Big i. Nd i will say it with every company. If you are trying to do it alone with no help, you will fail. Its like trying to learn french with no french teachers. If you have no idea about inclusion, you should get some experts to help you. There are individuals who can help you. Pay attention. We have companies that say, yes, we got the men. This is good. And they are leaving after a while. They are leaving because they dont really belong. Aty were never made to feel home. That is where inclusion is. I wish we had more time with you. Its fantastic to speak with someone who is willing to use their time, their platform to make this place a little bit better for everyone. Quite a long and storied history. The first black woman to head up and s p 500 cap company. Caroline, a lot to digest here. Caroline a lot to digest. She has had a storied career and is not right there still only 4 black ceos in fortune 500 companies. It is not right that female ceos of color ended with her leaving. But also, with the administration being able to impact with policy he was saying, perhaps my federal level, but at the city level right now she was saying, perhaps at a federal level, but at the city level right now. Romaine you talk about women, 5 of the s p 500 being headed by women. Theres a real sense, caroline, something we have talked about a lot this week its not just the feeling people have. Its the feeling things are going backwards. That we made a lot of progress executivemen into numbers, but getting black people into those executive numbers theres a sense that we are sliding back to a place where most people understand we dont want to be. Caroline progress is what we want to see and data. Such an interesting point by you, that we are starting to get data, data can bring us clarity and that certainly something we are starting to do at bloomberg, shine a light on how numbers talk. Now, a reminder after that that has got to make the podcast. What a conversation with ursula burns. Subscribe to our podcast. Whatd you miss . Emily welcome to bloomberg technology. I am emily chang. Some good news. Unemployment actually dropping to 13. 3 . That is still shockingly high and if you break it down, the last highest point in more than a decade, it dropped for white americans. The highest Unemployment Rate among lati