Markets and across asset analysis, i think a little history is in order. You need to go back to 1933, just before i entered wall street. You need to go back to 1933 to see the 53 day lift that we just saw. Jonathan tom keene in cash since the 1930s, an unbelievable position hes held throughout the last century or so. [laughter] you have not participated in this rally for a long time, tom keene. Jonathan this is tom this is really important. A great strategist at ubs was , and thato hours ago was the distinction he made. This has been a surge without a lot of volatility and without a lot of volume. Volume is missing, and that is something to talk to our esteemed guest about in a moment. Jonathan just a sense of exuberance in the last couple of days. Later this morning, theres a little bit of data we need to look out for. Lisa at 10 00 a. M. , we are getting job openings data from the u. S. Just looking for a sense of how quickly that is coming back online. Also really important, the Senate Finance committee is going to be debating whether they are yapping some of the they are reupping some of the Unemployment Benefits. Chuck grassley saying perhaps the jobs report on friday, perhaps this is a sign that we should slow down and reconsider. Then of course, the fomc meeting does begin today. I am curious on that front, is the fed going to dial back some of the expectations for its stimulus based on the betterthanexpected data, or are they going to give a grim outlook and say we need to do everything we can to bring financing particularly too small and mediumsized businesses . Jonathan i imagine a lot of people are leaning towards the latter. We do get some forecasts. We get a dot plot as well. I am looking to see how far that muchdot comes lower, how they pull that down on the forecast, and where the fed thinks rates will be in the coming years. Tom the key statistic there, i totally agree that is the great mystery of these meetings. We really begin with these meetings 18 months out to consider, i cant believe i am saying this number, when you go back to 1933 like i do, to get up to 2022 is really difficult. But it is sort of a first look at 22. Jonathan with equity futures a little lower this tuesday morning, down 0. 9 on the s p at, down around 28 points the moment after a rally of the last couple of weeks. We are happy to kick off this Mornings Program on bloomberg tv and Bloomberg Radio with bob doll of nuveen management, the chief equity strategist. For every jp morgan, there is a Car Rental Company that has absolutely ripped. I think a lot of people are trying to work out the distention between durable rotation and a speculative rally of the last two months. Which one is it at the moment for you . Bob in the short term, i think the market is a little i had of itself. But remember, the stock market went down 35 and a little more than a month before we got hardly any bad news about the economy. The stock market is a forwardlooking discounting its rides now is telling us things are going to be better for most given the flood of monetary and fiscal policy, the amount of cash sloshing around, the whole fomo argument, that is what is pushing stocks higher. They need a rest. We will see how long that lasts. Tom there is the acclaimed doll meter. What do you see in volume . What do you see in enthusiasm . What does nuveen see in flows about whether this is loved or unloved . Robert it is all mediocre. That is the volume. What we are seeing, if you look inside volume, is upside volume is dominating downside volume. That is encouraging, despite the fact that overall volume numbers arent as strong as we would like. Some of the stocks going up or short covering. A lot of shorts put out there when it looked like this thing was going to go down forever, and they are still covering. Lisa i am struggling with the tina, which and makes sense given that we are seeing an incredible amount of support from the Federal Reserve. Lets spare that with the idea jcpenney surged yesterday. These companies are bankrupt. Can you give us a sense of whether this is perhaps a harbinger of excessively frothy behavior that needs to get blown off a little bit in order to make you confident to go back in . Robert yes. A lot in those three stocks was short covering, no question. That just pushes up because then the sellers step out of the way. But that is a sign in the shortterm that theres a little speculate tatian a little speculation going on. People say, what hasnt moved . Let me buy some of that. You look at somebody buying a stock because theyve done their homework and they like the earnings and the evaluation, not because they just think it is going to go up, so i better get in. Jonathan lets talk about what is fueling the stimulus we have seen. Theres a huge focus on reopening, here in new york city and globally. As you go from shut down to reopen, naturally the data will improve month on month. Macys reporting this morning they have opened stores and they are performing better than anticipated. Are you seeing enough positive surprises outside of the sequential month on month improvement, improvement beyond what you expected . Yes, fasterobert and bigger. I think of lift pops announcements of lyfts announcements last week. Down 70 frombut a year ago. The month over month or the quarter over quarter are going to look phenomena. We will see that for Third Quarter and probably fourthquarter gdp. The numbers be a big bounce from ,here we were, but dont forget but we have not yet found new economic high ground. That is going to be many quarters down the line. Jonathan weve got to appreciate what is the dominant driver of markets right now. Will it be the sequential improvement we see in macys and other companies, or the limits of normalization . In the shortterm, it is certainly the former. I think the question is when it starts to rotate to being the latter. How do you see that playing out . Robert i think it is both. Then when you overlay, we talked before about the most gargantuan and quickest policy response to times, even modern since tom has been around. He hasnt seen this before. It is just gargantuan. You put that altogether, it is very powerful. See you are getting both of those data elements. Lisa we are going to be hearing from the Senate Finance committee, debating reupping some of the enhanced Unemployment Benefits. A lot of people saying that the market is pricing and that there will be an extension. What kind of disappointment to you expect, or upside surprise, if the senate acts one way or another on these Unemployment Benefits . Robert i think the market is expecting another build, including those benefits you just mentioned. Needless to say, the unemployment report of last friday has to call into question, do we need another stimulus package . But i think nancy pelosi told us that a month ago with the 3 trillion trial balloon, and the presidencies november coming up all too quick, and he wants a bill as well. Maybe it is a smaller bill, smaller than we might have gotten otherwise, but theres going to be some stuff from both sides. We will get some extension of the Unemployment Benefits, and my judgment. We will get some litigation help from the republican side, and some state and local aid from the democratic side. It will be a little bit of a Christmas Tree bill, but there will be a lot of loggerheads between here and there. Jonathan bob, always great to catch up with you. My best to you end of the team. Bob doll of nuveen. On policy as well, we will catch up with Olivier Blanchard a little later. The bond market returns with a bid. Yields coming in around four or five basis points on the 10 year. 24 hours out from that policy decision from the fed. Tom no question about that. I want to go beyond june 10 to the window dressing is going to be done on june 30. I cant fathom the pressure for active managers who are behind this market surge. The pressure in june two constructively, to begin to catch up as they go into yearend in this truly historic and difficult year. Jonathan one of the worst quarters we have ever seen, followed by one of the best quarters we have seen since the 1930s, i think. It has been absolutely remarkable. I think a lot of people envy us who didnt participate in this rally. We had quite a run on the s p 500. At the close yesterday, erasing the losses of 2020. Today, reminded the stoxx can move lower as well. , wety futures this morning are lower by 28 points on the s p, down 0. 9 percent. Ngside tom keene con alongside tom keene, im jonathan ferro, together with lisa abramowicz. This is bloomberg surveillance. Ritika with the first word news, im ritika gupta. U. S. Attorney general william barr has publicly contradicted President Trump. He told foxnews the secret service told the president to go to a bunker in the white house during a large protest. President trump has denied similar reports, saying he merely went to inspect the bunker. House and Senate Democrats have proposed a Sweeping Police Reform bill. Before presenting the legislation, Party Leaders knelt for almost nine minutes to honor george floyd. His death at the hands of Minneapolis Police has sparked several weeks of protests. The democratic bill would change the definition of criminal misconduct for police. Senate Majority Leader Mitch Mcconnell has not ruled out republican support for some sort of police reform. As minty as 25,000 stores in the u. S. Could close permanent this year, almost three times as many as last year. Of thea firm says most closures are expected to occur in malls. The coronavirus pandemic has devastated an industry where mallbased retailers were already struggling. North korea is shutting off communications with south korea. Kim jonguns regimes says the south Korean Authority carried out hostile acts. Leaflets were attached to balloons and floated across the border by antinorth korean activists. U. K. Prime minister Boris Johnson will set out his plan today for easing the lockdown. Last month, johnson said that nonessential retailers could if the threat of the virus continued to reseed. Recede. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. I think in the very near term, the pain trade is up rather than down, but fundamentally, id valuations close to 23 times any realistic estimate over the earnings, i think you are already in pretty stressed territory, so we would not be entering the equity market. Jonathan that was the chief strategist over at ubs on the pain trade in this market. It has been painful if you havent participated in the rally of the last couple of months. From new york city, good morning to you all. Alongside tom keene, im jonathan ferro, together with lisa abramowicz. We are live on bloomberg tv and radio. The price action set up as follows on the s p 500. We are negative on s p 500 futures, down 30 points, and up by 0. 9 after erasing all of the losses for 2020. Just a touch lighter on the benchmark this morning. In the bond market, curves steeper, yields higher. Flip it and reverse it. We are flattered. We have yields lower. 0. 83 . Pushing the haven currencies, the swissie and the japanese yen, outperforming in g10. No surprise that on the day the equity market a race to the losses on the s p 500 for 2020, the National Bureau of Economic Research confirmed that the recession officially started in february. In the united states. For this market. , it has been a short, sharp reversal. Tom no question about it. To be clear, that is normal for the nber to come out months after the start. They dont really know it is there, and they have to bring out the data and all of that. Between the highs we are seeing, there we are. What we are going to try to do today on the simulcast, we welcome you all on radio and television, we want to talk about the markets, as we do with bob doll. Olivier blanchard scheduled to be with us, with the peterson institute. On cycle research, this is really important, economists have an immense respect for it, and it is so different from the way most economists look at the achuthan is lakshman of ecri. Right now you are seeing up aaron. How big is the you are seeing an upturn. How big is the upturn . Akshman theres no doubt about it. I think they had to do it because the end of the recession is already in sight. They had to really get off their seat and take the peak. The stock price upturn is completely consistent with the economys cyclical fundamentals. This was a super deep recession. In early april, 10 weeks ago, we put out a piece publicly. It is a nasty, short, and bitter recession. The end is happening this summer , and it is just because we had such a sharp incline sharp decline that even a partial opening of the economy is going and we us off those lows are going to begin to have a recovery. It does not mean we are recovered. We have a long way to go. Jonathan lets talk about that. You are an economic historian as well. I wonder what the parallels are for extrapolating too far far too quickly. Lakshman you dont have to be much of a historian. Just think about this century. Everybody is hoping that it is 2009, 2010, when we had a cyclical recovery that was pretty selffeeding. We had two or three steps forward, one step act, but generally, it was a continuing recovery. Recoverythat to the out of 2001. People may forget that the recession began before the 9 11 attacks. It began a couple of quarters before. Lows thatfter the were seen in the market in september of 2001, the market really took off. The recession ended by november. We had a 20 rally. Ok, pretty good. Consistent with an end of recession. But then, and here is where it gets to the little where it gets a little nuanced, while the recovery technically continued, the economy began to decelerate again. It is what we call a growth rate cycle slowdown. The market excels, perhaps related to the valuation, when onto a new low in october of 2002. So right now, it could go either way. A 20012003till be scenario, which would still be a Business Cycle recovery, but a lot riskier for market participants. Hallmark of this entire period has been insecurity, whether it is someone who has lost their jobs, or for economists seeing their projections absolutely shattered. I am wondering how insecure you are about projections, and frankly about the Economic Data coming out, with huge miss on friday with the jobs were, and just how instructive this data is. Do you have confidence in these figures . Lakshman on direction, yes. As tom said in the lead in, we are different from a lot of economists. I know theres a warning label on all Economic Data that is produced. Market prices are what they are. Survey data are what they are. You see some of the things going on with the unEmployment Data. Recovery in employment, but it is hardly recovered. It is just a little bit off of the lows. When we look at the nature of this recovery, those cyclical indicators, i have High Conviction that this recovery is taking shape. Theres a whole bunch of other dynamics on the positive side, with the industrial cycle having bottom globally, which are going to help. And on the negative side, you were alluding to some confidence , i think that is going to weigh wille pace of recovery, as the nature of the job losses area the vast majority of job losses are inservice is area that is a completely different cyclical dynamic in services. That is a complete we cyclical dynamic. Achuthan onkshman the recovery we have started to see. Will we see the data this week validate the vast improvement in the jobs report, it jobs report that has an asterisk next to it because of the difficulty of collecting this data. That is the focus this week. Tom theres no question about fed will how the interpret that. I go back to this weekend with economists, that we have made back 15 of the employment collapse. If we add another 15 next month, i believe 15 plus 15 is 30 . That gets you in the proper direction. At this if we continue rate, sure. I am not sure how many people are confident that we will. Later today, we will catch up with Olivier Blanchard of the peterson institute. As new yorkl gapen and cities across the world slowly reopened. This is bloomberg surveillance , live on bloomberg tv and Bloomberg Radio. Savings from new york from new york city, this is bloomberg surveillance. We are live on bloomberg tv and radio. Alongside tom keene, im jonathan ferro, together with lisa abramovitz. Good morning to you all. Lets get you that price action. Equity futures erasing the gains of the last few weeks just a little bit. We are down 30 points on the s p 500, 0. 9 . Ofare positive at the close yesterdays session for 2020, off the highs of the middle of february. Elsewhere in foreign exchange, the risk aversion supporting the swissie, the japanese yen. Those haven currencies stronger against the dollar. Just a day away from and rates decision. Yields start to come in a bit. Your 10 year yield down by five basis points. 0. 83 . Down to 0. 83 coming down from 0. 92 , but i know we are under 1 , which means every listener and every viewer is getting absolutely crushed on a nominal and the real yield basis as well. With us right now, Michael Gapen with barclays. Just outstanding work synthesizing the american economy. Very thoughtful essays. I noticed over the weekend that a lot of houses were really trying to reach week two retweak to economic recovery. What did barclays write over the weekend to readjust to more enthusiasm . Did you do that . Michael we did mainly on the path of the Unemployment Rate. What we expected was a violation of voca ands law. We thought that firms would go into this situation with a lot of layoffs, but with the expectation of bringing many workers back in the june, july, and august period, so you would get access firing and then some excess hiring. I think what you learned last week was that the secondround effort of the Payroll Protection Program was really effective at keeping workers on the payrolls or bringing workers back onto payrolls. We are not getting as much access firing as the claims data and other early data pointed to, so we revised that expectation and pulled the Unemployment Rate path lower. We have left basically the rest of the forecast unchanged. Still a big hill to climb in terms of reducing unemployment, but we have a better start given where the may Employment Data came in. Tom i dont like chronology questions, but i am going to give you a when question right now. When in the summer are you going to have the kind of data to know that the job economy is recovering . Michael i still trust generally that from the weekly claims data, theres going to be misses in this environment. I think directionally, we are going there. So give me one more solid employment report. Lets look at early july. And continuing claims suggested trajectory of improvement, then i think you have that. We put together a weekly activities index, the u. S. Weekly activity indicator, where we work with weekly data. We try and extract a signal from that and map it into gdp activity. In may, andbottomed has been rising since then. I think the data is telling you things troughed in april and have turned better in may. So these directory so the trajectory seems clear. Me translate that, jon ferro, for you. What that means is july 10 at 10 00 a. M. Is all clear. Jonathan i am happy we have you here to translate these things for us all. I cant wait until july, michael. I want to talk about the next couple of weeks. What you need to see in the next couple of weeks to validate that the huge upside to price friday wasnt just a big distortion because of the difficulties collecting the data right now . Needel i think we would sequential improvement in the continuing claims data. Do continuing claims continue to ratchet lower . In one week, can we continue to see those move lower . Do initial claims data continue to come down . Both of these would suggest the rate of hiring is coming up in the rate of job separation is slowing. Ift i will also need to see the confidence indicators come in. There is the bloomberg Weekly Consumer Confidence indicator that gives us a weekly read on consumer sentiment. We have the retail sales data that come out on a weekly basis. Is is theed to know consumer emerging from this situation with confidence. We got a very good signal on that front from the may auto sales data rebounding up to 12. 2 million, certainly below precovid rates, but a sign to us that households are retaining confidence and willing to spend accumulated income on balance sheets. So if we get that duel signal that the market is improving and consumers are emerging with some confidence, that can take the economy into the Third Quarter. Just to be clear, i think the on meant report gives us a very clear signal that the nearterm cyclical recovery. All of the nearterm structural issues remain unresolved. That is still largely a question of science and medicine. But i think the data do suggest a cyclical upturn in the Third Quarter is at hand. Lisa given the fact that we are seeing improvement in this data, whether it is auto sales or the jobs report, do you agree with some, including senator chuck grassley, who have said they should perhaps take a pause before we upping the Unemployment Benefits before reupping the Unemployment Benefits . Do you agree . Michael i would say take a short time to think about that, yes. There is no immediate urgency to say get it done by the middle of june. We have until the end of july. The may employment report was an upside surprise and a very desired number. We are very happy to see that number, but theres still 19 Million People that need to be reemployed. The idea that we are going to get all of that done by the end of july seems a high hill to climb. I do think congress should be prepared to extend Unemployment Benefits in some. Additional help will be needed. They just dont necessarily need to take that decision in the next two weeks. See what that july employment report might look like, but be ready to jump in and extend those benefits as necessary. I would also say the states are an important additional factor as well. Tom a question i would ask james bullard, both of you out of indiana university, and it is real simple. As economists, what does this mean stockmarket signal to you . Michael i think that the equity market is a forwardlooking discount and is a, and in general, the equity market is pricing in a recovery for the u. S. Economy. It is not necessarily overly concerned about a second wave point on the coronavirus. Largejust telling me that companies are likely to gain market share and be the general winners coming out of this. We are also a very tech heavy equity index, a sector that is likely to do well coming out of this. I think it is telling you it is still likely to be a main street problem, not necessarily a wall street or big company problem. That is fine. I would just say the s p 500 isnt the entire economy. I am not necessarily worried about where these are versus our economic outlook. Equities will price what they do, and im ok with what that signal is saying. It is a little rich, of course. Jonathan the tomorrow, what are you dialed the Federal Reserve tomorrow, what are you dialed in on . Michael we think we will get Additional Information on asset purchases, their willingness in writing this to provide forward gotten willingness and readiness to provide forward guidance. I think it is time for the fed to give some communication on its monthly purchase rate of treasuries, and kind of repurpose those away from restoring market functioning to helping keep the overall policy stance accommodative. Beyond that, i think it will be mild optimism given what we saw with the may employment report, but still a lot of concern about downside risk, and the fed wilkins clued that it will the fed will conclude that it will continue to use all available tools to support the recovery. Jonathan my best to the team over at barclays. Michael gapen, chief u. S. Economies over at barclays in the united states. With equity futures down 28, that is no doubt the focused over the next few hours. Surely they cant still be talking about market functioning. We have gone way above and beyond market functioning with these programs at the Federal Reserve. Tom im so glad you bring that up. The markets have functioned beautifully. The liquidity identifiers have been absolutely fabulous. But i thought Michael Gapen was fabulous there about, frankly, like President Trump, chairman powell is going to say what can be wrong if the forward markets are voting like the markets are voting right now. All i am looking for tomorrow is the tweaks on 2021 and 2022. Jonathan lisa, i am sure you are pushed back a little bit here. There are some distortions, but wasnt that view objective of said policy, to divorce financial conditions from economic fundamentals . That was the objective of said policy several months ago, and i imagine it still is. Lisa yes, because they want to get financing to companies. The question now is are they doing too much, and perhaps whether congress isnt catching up leading to asset Price Inflation and nothing else . His idea of the widening gap i will build on something Michael Gapen was saying. As far as monthly purchases from the Federal Reserve, the expectation is to announce somewhere between 55 billion to 85 billion per month in purchases going forward. I wonder on the long end of the Treasury Curve whether that will be enough to sustain yields where they are. Jonathan full coverage coming up tomorrow. Do we have a fed special on bloomberg tv and radio . Are you leading that . Lisa i dont know if jonathan i dont know if i am leading it, but i am there. Scarlet fu will lead our coverage with some good guests. We figured if we can do the fed special, maybe we can bring real yield back. Jonathan i had a feeling you might say that just to stir the pot. You and i can talk about that in the commercial break. Good morning to you all. Alongside tom keene, im jonathan ferro, together with lisa abramowicz. This is bloomberg surveillance. We are down 27 points on the s p 500, down by 0. 8 . This is bloomberg. Ritika with the first word news, im ritika gupta. Republicans in Congress Republicans in congress are questioning the need for additional stimulus. They will have to decide whether benefitsthe additional for unemployed americans. The senate takes up the matter today. Joe biden has slammed President Trumps handling of the economy, saying the president inherited recovery in history, but squandered it, accusing President Trump of turning his back on the middle class with an agenda that helped corporations and the wealthy. Bail was set at high as 1. 25 million for the former Minneapolis Police officer charged with seconddegree murder in the death of george floyd. Derek chauvin is expected to enter a plea at his next Court Appearance on june 29. The trader who built retail group into one of the worlds biggest commodity houses has died. Ian taylor joined from Royal Dutch Shell in 1985. He took over as ceo a decade later. The company played a crucial role in energy markets. Sells, and trades crude around the world. Ian taylor was 64. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. We end every other Transit Agency are going to require federal aid to get us through 2020. About half of our revenue is based on fares and tolls. The leaderat foye, of the mta. That is a big question for all of us right now. From new york, alongside tom keene, im jonathan ferro, together with lisa abramowicz. We are counting you down to the opening bell, with the s p futures bouncing off the lows. Talked about this in the last couple of weeks, curves steeper, yields higher. Today, yields lower, curves steeper. In foreign exchange, reflecting that menacing risk appetite, the swissie looks stronger, the japanese yen as well. A little bit of risk aversion, going against the grain of the last couple of weeks. Tom no question a little shift here today. We will see how we get to the market open. One of the great things of working with jon ferro is it is a british view, and the british are clearly stunned at how the u. S. Does depression. Our social policy has been extraordinary. Hasnzie Global Research been absolutely stunning. The depth of their Research Country to country on issues such as poverty and the labor economy, they absolutely own the high ground on this. Susan lund out of northwestern and standard is with the Mckinsey Global institute. I am thrilled you are on. Is our social theory working . Lock in individual theory in washington, everyone is on their own, we will get through this without being socialized, is that theory working in this depression . Susan i am happy to be here. I wouldnt characterize that as the u. S. Response. I think that we have been staying at home now for two and a half months. We have the c. A. R. E. S. Act, which provided Unemployment Benefits for freelancers and a workers for the first time. And gig economy workers for the first to time. We had direct payments from the government. I think that our response,ouve got to look at it strengthened the social safety net in the u. S. , which is pretty weak. Tom youve got a great global reach on this. Is europe doing it better than us or not . Say, well, i hate to europe is doing it better than us. Europe employs a lot of programs to enable employers to get money from the government not to lay off workers. We have tried to do that in the by. The c. A. R. E. S. Act telling small businesses, for instance, you can access the ppp program, but you cant lay off workers. But europe has had this in place for decades. That is why in the last big financial isis, financial crisis, germany never sides Unemployment Rate skyrocket like we did in the u. S. So we might want to learn in the future that keeps a lot more sense that it makes a lot more sense to keep someone on the job and to pay them to sit at home. 1 3 you pointed out that of all jobs in america may be vulnerable, and about 80 of those are held by low income individuals. I am wondering what the broader effect is by the widening income gap we are seeing going forward, both from an Economic Growth perspective, as well as policy. Susan i think it is a big concern. We know we have had a lot of population, a lot of people working who havent seen real wage growth for decades now. It looks like covid could worsen that. We have also done some recent analysis looking at how many of the workers displaced from covid may ultimately be displaced from automation and ai. Theres pretty significant overlap. For some of these workers, their job a not come back. This may not be temporary, but rather permanent. That just means that u. S. Needs more badly than ever a true coordinated program for helping individuals learn new skills, get into the jobs that are growing, and get out of hospitality service, retail clerks and so on. Jonathan there is some talk of a new industrial policy in the united states. Mr. Bob lighthizer has talked about that. Weveeflected on it as discussed more about repatriating supply chains. Is that the direction of travel you see things going in . Susan i cant believe we would use those words in connection with the u. S. , but whatever you want to call it, i think that is the direction of travel. I think that the concept of what is essential for Economic Security has broadened. It used to mean airplane and tanks. I think now it might mean masks and pharmaceuticals. Jonathan masks and pharmaceuticals are perhaps justified. I think it is elsewhere people are looking to see if this goes beyond just pharmaceuticals and healthcare goods to make sure we dont face this kind of crisis in this way once again. Is it broader than that . That research we had done last year, and indeed we are going to be releasing tuneding in july, so stay for our latest look at what is happening with double supply chains, but our trend has been towards region lysing supply chains in Many Industries anyway. That has been happening for the last 10 years, partly because wages in china have risen, partly because chinese consumers buy a lot. So now a lot of companies in china are just there to sell to chinese consumers. So a bunch of factors that started to put Global Supply chains in play. One big trend was region lysing. That was region allies was regionalizing. That doesnt mean that factories come back to the u. S. But it is possible that coming out of this, beyond pharmacys and ppe, congress may look at things like semi could not or rare earth like semiconductors or rare earths or other strategic goods that they want to make sure the u. S. Would have access to with any Global Economic conditions. Jonathan susan, fantastic to get your thoughts and really important subjects that go beyond the immediate crisis we have been living through. Susan lund, Mckinsey Global institute. Watch this space. There will be lots of work done here in the months to come. Tom that will be interesting to see on policy, particularly wrapped around the election. We have seen the way the backandforth is heating up between President Trump and president biden. You really wonder how they are going to approach their new vision given the tensions with china. Part oft the deciding the election, but it is really going to be interesting to see how they touch upon policy shifts and supply design. Jonathan quickly becoming a key feature of it, that is for sure. We are live on bloomberg tv and on Bloomberg Radio. This is bloomberg surveillance. Equity futures down 24 points for the s p 500, 0. 75 . , yieldsnd market lower. Up next, weighing in on the bond market in america and the Federal Reserve decision tomorrow, Subadra Rajappa of socgen. This is bloomberg. The ecb will, within its mandate, continued to support the recovery with all appropriate measures. Are adapting to what central bankers are doing these days. Imbalances isbout that at some point, they reverse. This is true about income inequality in the u. S. , too. This is bloomberg surveillance with tom keene, jonathan ferro, and lisa abramowicz. Tom good morning, everyone. Bloomberg surveillance. Thrilled you are with us on th