In the corporate world office cash and apologies for historic racism. Critics say people want more than just words and serious action is needed. Lets get you a look at the markets. We had a whipsaw session as these comments from jay powell really causing investors to take a step back and consider the amount of risk being put on the table with this record rally weve seen this year. We are seeing on the downside when it comes to trading in u. S. Futures. Down by 4 10 of 1 . Chicago futures, also pointing like a down stock when it comes to trading. Over in tokyo, i should say. In sydney, a downside of 1. 4 . Interestingly, we are seeing that strong rotation from gross into value stocks in the australian market. New zealand, on the downside of. 25 despite rough data that suggests credit card data for may saw a bounce in consumer spending. Story, back to our top the Federal Reserve sent the most dovish signal it could after they didnt. Make a policy change Kathleen Hays is here. She has powerful words from jay powell. What did he say, how was it backed up by his colleagues . Is an interesting bed jay powell, as far as i heard, we will keep the key rate near zero. It is clearly not back on track. The extra strong unemployment report which powell called the biggest prize ever made people wonder, could they start signaling pull away a little bit . When jay powell spoke, when the fed issued its policy statement, it was pretty clear. The fed is not going anywhere for a long time. Going to keep that key rate at near zero until the end of 2022. Lets listen to how powell described it at the press conference. We are not thinking about raising rates. We are not thinking about thinking about raising rates. What we are thinking about is providing support for this economy. We do think this will take some time. I think most forecasters believe that. Kathleen i think thats my new favorite phrase, im not even thinking about thinking about it. Lets look at something from the bloomberg terminal. Plot. The dot we have not seen any dots since the end of last year because the fed skipped them in march when they had emergency meetings to push it down to zero. This is amazing. You have got no change to the unemployment in 20, and then when you get out to the end of 2022, just to out of 17 see some kind of hike in rates. If you cannot have more dovish support from your colleagues on the fomc, i dont know what it would be. Theourse, jay powell said may jobs report sweeps 22 Million People unemployed. Thats why they will be aggressive. Ddp down 6. 5 . Rebounding 25 . You have until also unemployment, falling to nine prepare percent by the end of this year. Down to 6. 5 by the end of next year. That is reasonably optimistic. Powell said more needs to be done as the fed is going to be buying 80 billion worth of treasuries a month, 40 billion worth of mortgagebacked securities. Why . They need to increase their Bond Holdings to keep credit flowing, to businesses and consumers and to having smooth market functioning. Shery the question of racial inequality in the economy has really risen to the forefront in peoples minds. How does powell see feds role in this . Kathleen i would like to remand everybody that he has been clear that the pandemic has hurt those who can least afford it the most. Lowwage workers and proportionately, that has affected women, africanamericans, hispanic most. S the it is interesting that he went out of his way to put something in his prepared remarks. I think this is clear that the fed wants to make it obvious that yes, we too are concerned about racism. I speak for my colleagues when i say, theres no place at the Federal Reserve for racism. There should be no place for it in our society. I think jay powell talked about wealth inequality, income inequality, and talked about if you get caught on the wrong side skills,ng technological if you get caught on the wrong side of globalization and having the right kind of job to keep yours even as other people find they are falling behind, then you are in a tough place. Black and employment at 16. 8 in may white unemployment at 12. 4 . Still a big gap. Staying withen is us peerless get perspective from one of wall streets most accurate observers, ellen zentner. Great to have you with us. Why dont we start with unemployment numbers. The fed did not seem to be singing victory with the may jobs rebound. What is it telling us, the fact that they are increasing their holdings of mortgagebacked securities, as well as treasuries . You thatthink it shows they accurately believe that we are not out of the woods yet. We can be heartened by what we are seeing in the incoming data. It confirmed that there is a bottom in the economy in april. The economy is opening now. So we are seeing a bounce upward and all of the indicators, including states opening up. Businesses are bringing employees back. To some extent, if you are a policymaker, and you are focused on the outlook, what does this you . Term data tell it tells you that structurally, because the economy is opening up, we are bringing jobs back. You,es not ultimately tell does that mean we are on track for the Unemployment Rate forecast that they envisioned . It does not tell you anything about after businesses bring back all the workers in order to meet those requirements for the payroll protections paycheck protection program. Do they keep those workers . Thats a big question mark. When we look at six months from now as government stimulus is stating and businesses are starting to take a closer look at, does the underlying demand really support having brought back 100 of my payrolls . That is where the rubber hits the road. Not just because data is Getting Better because states are opening up. Shery given what we have seen with the Economic Projections showing gdp will not return to normal until at least 2022, does that put a vshaped recovery off the table . So, this is where economists get to antics. If you look if the fed were to give us a quarterly profile of growth, which we dont, we only get an annual profile, then you would see what looks like a ve. It is because you would see a very historically sharp drop into recession. And a big bounce out of it. When you are going to no activity, opening up to a little activity, and you annualize that, it looks v. It would look like a v even in the feds forecast. But what they are sending a message about is there could be dislocation fear, it take some time to work through. We should have a little bit of humility and our expectations of where the economy can go, account for the considerable uncertainty of where the economy could go. That is the reality that the markets needed. It is dangerous for them to get a little too fuzzy about what is going on with the data now just because it is a factor of us opening up. We need to be mindful of what growth looks like on the others have the pandemic. Kathleen i think that is what jay powell said. He put a lot of emphasis, he stressed many times, you still have over 20 Million People without jobs. That will take a long time to work down. I want to come back to this new rate hike, no moving up zero, to the end of 2022. How much is this job learning . Using your words, using Forward Guidance to be a form of stimulus for the markets, for Consumer Behavior and reassure them. And how much is it something that could change very quickly if powell and company, that we get lucky, and it does come back more, into does grow faster, more quickly, then is expected now . Wasn i think today, today a beautiful example of how powerful Forward Guidance can be. And you started at out started it out with that quote, we are not thinking about raising rates, we are not thinking about thinking about raising rates. There is nothing more forceful than that. Dot and, alongside the how you can manipulate Market Pricing just with your communication, which Forward Guidance is an important part, shows you how little room there is for Something Like guilt per capita that would artificially keep markets from pricing in rate hikes over the nearterm. You just dont need that when you have got this kind of guidance. It is really what we saw today. Said at some point, Forward Guidance may not be strong enough. What if the data starts running ahead . Communication is still important. If the data is coming in better than expected and markets start to bring forward those rate hike expectations, if the fed this is how they always operate. If the fed does not believe the market has it wrong, then there is no job for them to do. They let it lie and let those expectations bring expectations forward. If they think the market is getting ahead of itself, then you have to get out there and either pound the pavement and pushback on those expectations, or put in Something Like the caps. Kathleen markets are getting ahead of themselves. There were questions about this toward a jay powell p there will continue to be questions when you see stocks plunging ahead. The next thing you know, people are buying like crazy again. It is your concern, if any, about a stock market bubble, people getting ahead of themselves . . If the economy is still this weak and the fed has to signal that the markets are getting ahead of themselves, that is kind of selfdefeating potentially if you are trying to boost confidence and get things going by saying you will not raise rates forever. Ellen yeah. First of all, you are an economist by training just like me. You know that it is dangerous to try to glean from economists that there is a bubble in markets are not. We are very good about how to clean up the mess, we are very bad at saying whether there is an actual valuation justified. I know investors are saying look, 20 20 is a wash. We know 2020 is bad. We are looking ahead. And we are trying to price in what the world looks like ahead one year from now. Case, you are assuming the path of covid means we get a vaccine in the spring. That is when your year on year comps look start start looking very very but favorable. Truly, they discounted what they are looking at. When are they taking into account the proper risk that lingers out there . We could get unemployment down and it stalls because of the dislocation that is evident in the make in the labor market. I really cant say but if you are the fed, ultimately, this is something powell wanted to stress. When the Banking System is wellcapitalized, and you can absorb the bursting of bubbles better than in the past, then it is better to let the economy run youruse you are overarching duty is to get the labor market as tight as possible and get as many folks back to work as possible. And that is your number one priority. And it has to come at the extent of whatever equity market valuations are doing. Kathleen one thing an economist like you does very well is make forecasts. Forecast . Your is the fed going to be able to wait until the end of 2022 to raise rates . Do you think there is a chance that even by next year, the fed will start pulling back some of the stimulus . I certainly think there is a chance that let me preface this by saying, as luck would have it, we only forecast it through 2021. I can tell you through the end of last year, we do not expect the fed to hike rates. That said, at some point, with an Unemployment Rate that we were in the same mindset where we are getting down to around 6. 5 by the end of what of next year. It is above where we were precovid. But that, coupled with core inflation that we believe, nothing least of which is on easy comparison, getting that toward 2 , at least they should be considering communicating reducing the pace of purchases on the balance sheet, thinking about how they can draw that down and come to a basis on their balance sheet. They should be thinking about that on the back half of 2021. We also have an assumption other than a vaccine in the spring with an inflection of growth after that because we are shaking off the last vestige of covid19 as high density Service Sectors are allowed to come back. Strip look at my wrist about, cristobal, i dont think in that scenario, i dont think it would be such an out there function that the fed would already be considering when they might begin to hike rates. Well before that, they will start thinking about raising rates, and they will let us know that there that they are starting to think about raising rates. Powell will be adjusting his language well before that. As of now, based on their forecasts, they see it right now, they are so far from their dual mandate that based on what they think they know right now, there would be no reason to raise rates for the next several years. Shery thank you very much for that crystal ball assessment. And our thanks to Global Economics and policy editor hays. En we will hear from more voices on the fed and the impact on markets as we move through the day, including guests from nuances to securities, jp morgan, and others. Haidi still ahead, the backlash against brands of insensitive remarks on racism and police brutality. Boykintowns. Ren first up, Steve Mnuchins backing cart targeted stimulus to help businesses reopen after the bite the virus. We will get more details out of d. C. Next. This is bloomberg. Is bloomberg. Watchingou are daybreak asia. The oecd says the coronavirus pandemic may cause a global slump of 6 this year, even if infections continue to recede. It says the u. K. Will be hit harder than any other leading nation with a decline of 11. 5 in the last and lost two and a half million jobs. And a second wave could mean a worse worldwide contraction. In global gdpine that we foresee in 2020 is than any we have projected in the 60 years since the oecd was created. Says itmeanwhile, tokyo will simplify next years delayed Olympic Games to take the effect of the virus into account. Organizers say they and the ioc have agreed an approach to make the event more simple. They say more than 200 subjects have been identified as potential candidates for a more straightforward game. They declined to say how much expenditure would be saved in such a move, if any. North korea is ramping up pressure on the west with the state news saying the u. S. Is being told to stay out of in korea issues. The report comes amid rising tension between pyongyang and seoul. The north has refused to answer calls that their shared Liaison Office saying it has cut communications with the south. Oulsngton has rejected se calls of easing of sanctions on pyongyang. 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. Am karina mitchell. This is bloomberg. Shery treasury secretary Steven Mnuchin says the u. S. Needs additional fiscal stimulus, particularly for businesses struggling to reopen from virus related closures, even as he says the economy has started to recover. I think we are going to need legislationrtisan to put more money into the economy. As weve said, we dont want to rush into that because we want to be both careful at this point in seeing how the money is in the economy. And a lot of the money is still not in it. And two, i think we need to be more targeted at this point. Shery Emily Wilkins joins us now. I guess a key question is how much bipartisan agreement have we seen so far when it comes to what will go into the next package . Emily absolutely. That has been something that republicans and democrats have been trying to work out for weeks. Mnuchin gave a couple suggestions. He suggested federal assistance for small businesses, travel, detail and leisure businesses. And also potentially more cash for american families. He discouraged lawmakers from doing a Capital Gains tax. That is laying out a blueprint right there on what we might see. The big question for the next stimulus bill is will there be aid for state and local government . That is something democrats have been pushing for. Republicans have not yet fully been on board with. Haidi we are also hearing that President Trump is planning to resume campaign rallies. How much concern is assigned to worries and the materialization of a second wave of infections in parts of the country . Emily i think trump is going to be doing in these doing these country. Laces of the trump wants the economy to open up. He wants the Strong Economy again to run on. The fact that he is back out there, some people close to him are hoping that signals that things are going back to normal, that our economy is going to rebound. You have seen republicans make a very similar argument in congress for months. Theyve said we need to be back out there, we are also essential workers. And if we are having our constituents go back to work, we should be back to work as well. Shery of course, protests across the United States continue. We heard from George Floyds brother, speaking to congress. Take a listen first. Im tired. Im tired of paying. Pain you feel when you watch Something Like this. When you want your big brother, who you looked up to you for your whole life, die, die begging for his mom . Im here to ask you to make it stop. Stop the pain. Stop us from being tired. He called for help and he was ignored. Shery what is the latest on any Government Action in order to address some of the demands of the protesters . He gave a powerful and moving statement at the house judiciary committee. This is a committee that is going to be marking up the bill that House Democrats introduced earlier in the week that is meant to put certain restrictions at a National Level on policing. Republicans are planning on introducing their own bill. That is expected to be more favorable toward the police. At the same point, you have Senate Republicans who were working on their own bill. I think at this point, i think there is a sense on all sides that something should be done. I think there is a want on all sides to come together and bring together a bipartisan product. This issue is becoming politicized. It is an Election Year and it is difficult to move major pieces of legislation. I think we are still looking to see what can be done in a bipartisan manner or whether both sides are going to be able to come to the center and reach an agreement. Emily wilkins, our bloomberg governor government congressional reporter. We have other big interviews coming up on bloomberg tv including John Wobensmith and the leading global footwear company, alexis nasard. This is bloomberg. Check of theget a business flash headlines. Deutsche bank secondquarter loan provisions will rise to the highest in a decade as a grapples with the economic slowdown caused by the coronavirus. The cfo says that money set aside for bad loans will reach more than 900 million in the three months through through june, the most since the global crisis. L denmarks financial watchdog has reported the bank for our violating rules designed to protect investors from market manipulation. The fsa says the bank entered into agreements to buy or sell Financial Instruments without any change in ownership, and that allegedly happened between 2016 and last year. Coming up next, Commodity Traders having more than a billion dollars amid the mayhem in oil markets. We will discuss the come back next. This is bloomberg. This is bloomberg. They started trading in thursday. Later on Sophie Kamaruddin is tracking the story. What are we expecting from this debut . Sophie the signals are pointing to a decent session at a start with an offer heavily oversubscribed. That triggered the clawback mechanism for the retail trench was which was oversold. That is the best for the city since 2017. That, extended gains up nearly 60 over the past year to about 425. U. S. Is and pays for the 38 listed Chinese Companies which could be eligible for secondary listings here in hong kong. The week, jd. Com is on docket with training to start june 18. Economyntum for new players seeing a foothold here, that is expected to pick up after u. S. Senators green lit a bill in may 2 chinese listings. We have been tracking the Development Since we got wind of more potential secondary january. Back in this after alibaba started things in november with hong kong shares. Chinese stocksed under heavy scrutiny right now. There were big moves overnight in some less wellknown names. What happened . Clear it is not entirely just what specifically triggered some of these big moves, primarily seen in Small Chinese financial stocks. We had china releasing credit growth overnight. The delisting concern, that heavily. Weighing check out the jump in finances. It received a delisting warning from the nasdaq last month. The stock closed 170 higher after jumping over 700 . During the session, 80 are by triple digits, more than 900 on heavy volume. Anthony cautions investors to stay away. They should be trading amongst themselves to boost share prices. Haidi what are we seeing from other companies that are testing those ipo waters in hong kong . Sophie not surprisingly, with the virus top of mind, biotech, health care, they are drawing strong investor interest. The sector is likely to drive secondhalf deal activity here in hong kong, with several listings potentially slated, such as we dr. And tiger met. This week, two Health Companies started marketing in the city. Reportedlyames weighed a secondary listings which some observers have warned could be hard to absorb if liquidity gets hampered. And while hong kong is expected to top other ipo venues this year after lagging last year, turnover, we have seen that being under pressure. Compared to the u. S. , turnover in hong kong is about a quarter of a dollar value as you can see on the chart. Haidi Sophie Kamaruddin there in hong kong. Lets get to oil. As prices include collapsed earlier this year and rebounded, Goldman Sachs Commodity Traders were reaping redemption redemptions. They generated more than 1 billion in revenue. Lets get to our finance reporter who grabbed that scoop for us. And joins us on the line. This used to be the commodity used to be the crown jewel. Is this a comeback we are seeing . It certainly seems like it. Without a doubt, 2020 has been a banner year for the commodity, saying when you have 1 billion in five months, it is understandable why because that is what they have made for the whole year in the last three or four years. The story really has been oil. It has been the biggest driver for them, so you are seeing higher volume, climbing demand. Across the board, you have different pockets within the commodities unit doing really well. The biggest driver, the single biggest driver has been oil. That is evident in the wide swings weve seen in the market. In the First Quarter, when they called it a bearish, they were short on oil. You saw oil drop 70 . Then for all you know, that was the start of it. By april, you had the real taste of it when oil went to 38 a barrel. When the retails and investments on liquidity, some wall Street Investors were wellpositioned to reap big gains. Goldman clearly was in the right place at the right time. Deal foris is a huge goldmans commodities unit. They had a challenging few years. Sridhar without a doubt. It has been quite right for them. As he mentioned, this truly was the crown jewel of the wall street trading juggernaut for Goldman Sachs. Just before the Global Financial crisis and through the crisis, when all the banksss were struggling, Goldman Trading opposition was wearing on also wonders. That was a time when you had the commodities about was pulling in billions a year. In recent years, it has fallen out of favor. It had a rough 2017. For the entire year, it had revenue of just about 300 million or less than that. When you have new management they weren 2018, taking a hard look at each and every line of business. Microsoft a microscope to that business. And they were worried whether it was making enough money or whether there would be a dragging factor. Luckily, they decided to make more make modest cuts, stick with the business, and is volatility has returned, as trading fortune is concerned, they have come forward and gotten to the best side it has on a decade. Shery Sridhar Natarajan with the latest on goldmans commodity unit. Guggenheim says the fed is stuck with being interventionist for now. Its global cio famously called risk asset valuations ludicrous ahead of the market wrap this year. Scott minerd share dashers has outlook for u. S. Markets and the economy. It is a matter of which piece of data you look at. There is a very high level of uncertainty, especially as we reopen the economy. Now arestates experiencing spikes in covid incidents. Those are mostly the states which opened first. That theyey are right are subject to a lot of uncertainty at this point. There is only so much the fed can do through the operation of Monetary Policy to really address the issues other than to make sure that the markets are liquid. Maintainthey basically Interest Rates low enough that it does not interfere with Something Like mortgage rates. Tom keene and here, good morning to you. Global rave reviews and wall street was transfixed by how debt on you were in february decline. You called it the ludicrous season. It has now become a lucas 2020 with this huge and abrupt recovery we have seen. Can you give chairman powell all the credit for this 44 move up in equities, or is there Something Else going on . I think chairman powell probably deserves the majority of the credit. Rallye in the midst of a from the march 23 lows that looked like a correction in a bear market. 9 when the Federal Reserve announced aggressive policies and relationships to dealing with corporate credit. In the purchase program. Has supportedly the rally. When you look at the correlation between credit spreads relative to u. S. Treasuries and equity prices, that correlation is pretty robust and very tight. I think the fact that the fed has managed to drive credit spreads tighter has basically given the support to the equity market that basically the signal was we are not going to let companies fail, so you may as well jump in and get involved. Im wondering when you look at where the level of stocks are right now a new look at the level of spreads and how the fed brought everything in and they will continue buying at the same rate, is this a little bit like jay powells work here is done and they can be told be on hold at this point . Because they dont really need to do a whole lot more . Scott there are two issues. , the first issue, the fed is stuck being interventionist now. Simply for no other reason because they have to provide enough credit to finance the u. S. Treasury. You asked and interesting question. Is there anything the fed can do . To address the problems . Is stucknk the fed financing the u. S. Government because of the size of deficits. When you look at credit, however, credit spreads now have been wider 40 of the time relative to u. S. Treasuries. They were tighter 60 of the time. That is a pretty normal spread for credit. Is not sure that the fed really finished in terms of what it wants to achieve, in terms of tightening credit spreads. I think the jury is out. One of the big reasons for that is we have yet to buy any Corporate Bonds under the Corporate Bond purchase program. And in time, i think there is so much demand for credit at this point from the investment standpoint that we probably will end up driving credit spreads in and it will be supported by the fed. That was scott minerd there. Coming up next, as protests u. S. , majoross the companies are speaking up and positioning their brands but the responses not only the response has not always been positive. This is bloomberg. Karina this is daybreak asia. The Federal Reserve is pledging to maintain its current pace with debt purchases and sees Interest Rates near zero through 2022. St chairman jay powell is committing to using all the right tools to help the u. S. Economy recover from the virus. The fomc said it would increase its holdings of treasury and mortgagebacked securities assist dana functioning in the market. China is buying soybeans from the u. S. , despite tensions with washington over the coronavirus and the future of hong kong. Sources say state and private organizations bought at least 10 cargoes this month with three in the last way for hours. There are fears that worsening relations could hurt the phase one trade deals. But a leading traders is the deal remains on track. A second wave of coronavirus cases is starting to appear in the u. S. As states emerge from lockdown. Texas reported more than 2500 new infections, the highest one day total since the pandemic struck. Texas has now seen four Straight Days of new infections, while the latest tracker puts the u. S. Virus cases at a fraction under 2 million. More than 112,000 people have died. President trumps top economic adviser says he does not see systemic racism as a problem in the u. S. Larry kudlow spoke after the funeral for george floyd and said the white house is looking at possible reforms of police behavior. The president is expected to address the disparities in america before a fundraiser in dallas on thursday. George floyds brother called on congress to act. 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. Mitchell. A this is bloomberg. Major corporations have moved with unusual speed in recent weeks, a position that brands are messaging over racism brutality. Since may 25, all but a handful of the 50 Largest Companies in the u. S. Have responded publicly to these events. But the response has not all been positive peer to track that steppedy, crossfit ceo down over his controversial tweets. Others have faced a backlash for the racial makeup of their company. And lack of progress when it comes to the culture. Joining us to discuss this is karen boykintowns, senior counselor at a company. It is fascinating. For years, so many of these companies and retail brands have put a lot of effort into curating this middleoftheroad politically neutral stance. But in the past few weeks, it has become very obvious that politically neutral is not what Consumers Want to see. Karen absolutely. It is absolutely breathtaking at the speed of which things are moving. And it is very, very clear that to be silent or to be neutral in the middleoftheroad does not cut it. Not at this time. We have seen a number of companies putting essentially their pocketbooks where their messages. Donating to some of these black lives matters related charities and organizations to provide support to people of color. But is there an issue where the political messaging, the philosophy being conveyed, is at odds with their own labor policy . We have seen amazon coming under fire, we have seen a number of organizations and critics they look, you are saying all of this, but how many people of color make up your executive team, for example . Karen exactly. Social media is really playing a crucial role in this marketing backlash where consumers are really Holding Brands Accountable for what they may see is a double standard. So while brands are making statements in support of black lives matter or blackout upsday, yet they dont own to some of the shortcomings they may have, you see this backlash that is happening. Companieskly, where fall short in the response is really where they are not being honest in assessing the situation that they have. But when you do see ceos owning up to the fact that their numbers are not where they want them to be and that they will be putting policies and procedures in place to make changes, thats fine. But it is just where there is a sense of hypocrisy where you are really seeing whether it is consumers, employees who are speaking out, and or partners. Shery who is doing it right and whos not . I think it depends on the day. Seen somenly, we have pretty striking examples of where it has not gone right. You mentioned earlier in the piece, crossfit. One i found particularly loreal that was criticized after coming out in support of black lives matter, but not really addressing something that happened a couple years ago with the firing of munro bergdahl. The good thing is after she spoke out, they reached out and it seems as though they are going to and if it from her experience by having her on their dni advisory board. Lot that ise is a happening, but i think it is important that Companies Understand that you just cant say you support something when your history has been somewhat different. Unless you are really looking at yourself reflecting and really looking to move forward. What . U know it is for us, the public, to hold them accountable. Shery how do you overcome that discomfort that some Companies May face, that as you say, the rhetoric is there and the support is there, but their management has not gotten to that point where they can actually reflect racially quality . Karen i mean, its a process. Day,nk at the end of the brands are not happy when they are losing reputation credibility. Of things a number and within boards of directors, there are conversations taking place about what are the things that we need to do in which to improve the talent in our pipeline and the Diverse Talent within our see suites and within the ranks of the board room. In an environment like this, is it all and all companies and Corporate Leaders to weigh in on this . Karen you know what . I believe so. Because at this point, those who have not spoken out are seen as outliers. The question is, why not . I think we continue to see Companies Come out. Certainly those that came out first were the ones that i think you would normally expect. We heard from some that maybe you had not heard from before. And those that havent, i think they are trying to figure out how to do it but do it right. But i think we are at a time, a moment in time, where it is seen that status quo is not good enough. And things have changed and Companies Need to really get with it as well. Haidi how important is it for that sentiment to be backed up by policy change and by monetary contribution . Does that lend credibility when a lot of what you see on social media, i think if you are being cynical, can be dismissed as the equivalent of thoughts and prayers at this point. Karen [laughter] yeah, i think folks are tired of thoughts and prayers. Seeinglieve that we are that if you dont have change, then there is a problem. People are tired of words. We want to see action. And in seeing action, that means certainly, the statement. That is like the floor. Then you see some donations, and thats nice. But then when you really want to see those companies that are more on the sophisticated side as they go about this is where they are using their platforms for conversations. Managers are seeing that are reaching out to their black colleagues and having those oneonone conversations, or those Smaller Group conversations, to check in and see how they are doing. There are where companies that maybe didnt have diversity officers, looking to bring those in and put in more inclusionersity and practices. Where you see an assessment in terms of where they are, in terms of their diversity within the company, and then saying ok, here is the stark reality of where we are, and setting goals that are measurable that will be reportable in terms of the progress they are making. In this environment, words no longer matter. It has to be backed up by action. When i think what i think we hope to all see is that in three months, six months, a year, while we may have moved on to Something Else, at the end of the day, this will stay front and center and companies will be held at cannibal held accountable for those promises they made. Shery great to have you with us. Karen boykintowns, senior counselor at start of urban and and coand vice chairman of the Naacp National board of directors. We will have plenty more to come on daybreak asia. This is bloomberg. Shery lets get a check of the latest business flash headlines. California theme parks will reopen on july 17 after months of being closed because of the coronavirus. Customers will need to appertain present reservations in advance for the original disneyland in anaheim and disney california Adventure Park. Disneyland in florida will begin a phase reopening next month. Anutch company has agreed in all stock deal to buy grubhub in the u. S. The takeover is expected to complete in the First Quarter of next year. Grubhub is valued at around 5 billion. The deal wilkie will give just a take away a platform in the u. S. To take on uber which has been trying to buy grubhub. Coming up on the next hour of daybreak asia, we will look at the asian markets open. Thats next. This is bloomberg. Good evening, from bloombergs Global Headquarters in new york, im shery ahn. And haidi stroudwatts. Welcome to daybreak asia. Weigh the message that policy will change for the foreseeable future. The rates will remain near zero through 2022. Global virus cases continue as u. S. Infection cases are nearing 2 million. Texas records its highest single day jump since the pandemic first emerged. Preparing and hong kong to debut. Raise 2. 7 billion u. S. Dollars. We get you a check of the markets opening. We are getting breaking news on south korean trade. That picture is looking like we are seeing a rise for the first 10 days of june. Export of 20. 2 that increased year on year chip exports inning by 22. 6 . Getting a push up when it comes to semiconductor demands globally. Its 10 day great daily average falling by 9. 8 year on year. This is the headwinds when it comes to the south korean trade numbers. Bellwether for global trade and how that has been impacted by the pandemic shutdown. Marketet straight to the action to we saw u. S. Markets underwhelmed, getting whiplash from the fed. What are we seeing here in asia . Up for ae are setting down day. Check out the nikkei 225 under pressure, falling below 22,000. We have had signals flashing. The prospect of tokyo easing the virus, we will see whether that can provide. Z yen holding a threeday rise edging towards 107. In increase in yen as the dollar fell to a threemonth low. Lets check in on the reaction markets. Korea the latest export data, the kospi up 7 10 of 1 . Being tested after a nine day gain. Cosby from march. The korean won is holding a fourday advance. They see the currency playing catchup. We are assessing these latest expert data is. These figures showing a rise in 22. 2 20. 2 year on year. 2,000,000,000,001 asset purchase for companies with liquidity. This as policymakers attempt to push in the shortfall from the virus. In sydney, aussie stocks are under pressure, snapping a sevenday winning streak. The aussie dollar is easing off from opening high. Lets check in on u. S. Futures. We are seeing a move lower for s p. We are seeing a move in the treasury build, continuing to climb after the overnight rally on the fed bond buying. Outperforming. He conceded tenure off by one basis point. Check out the hong kong dollar, continuing to hold near the strong end with a gap, still a major driver. We are seeing that peg. To the kong, jumping terminal as we wait on the debut, which raised 2. 7 billion in the secondary listing at 100 2300 hong kong dollars. This was priced at a discount to the u. S. That has gone further as the adx climbed. Certainly a big event we are watching in hong kong. Shery stocks are really under pressure. Not only whats happening in coronavirus headlines, but the Federal Reserves forecast of loose Monetary Policy. A long road to recovery for the economy. We are joined by daniel yoo, head of global investments. Always great having you with us. Let me start with south korea. Now seeing the numbers turnaround. The export data for the first 10 days of this month are looking pretty positive. Is this why we have seen that rally in the korean markets recently, especially in financials and other cyclical stocks . The factors is what you just said. In terms of the economic coverage, korea will show better numbers than other countries in the world. Given the fact that we have a high towards the semiconductor business. Rises in the bio related sector. There is the unkept business or the covid 19 post industries. We are asking quite a bit of market shares in those areas. Clearly that is the reason why we are seeing better economic numbers, and better public performers. Not just that, we are seeing a huge liquidity investment by domestic investors. We are seeing a Huge Customer deposit rise that we are seeing by over 20 billion u. S. Dollars for the past several months. The equitylding into market, its clearly showing other dimensions we are seeing. I think people are looking at the korean story that was always around for about 10 years ago. That happened again at this point in time. You talked about domestic investors, what about Foreign Investors . The gtv chart is showing the korean won gaining ground. This after being one of the worst performers alongside the kospi. Daniel i think that the Foreign Investors have a Significant Impact on the overall price movement. Toertheless, if you go back 2005, 2007 rally, where kospi index went from a financial crisis, it went from around 900 to 2000. We saw Foreign Investors selling by more than 10 of ownership of korean equities. Despite that, we saw a massive rise because domestic investors liquidity matters. We had a lot of investment coming through and resulting into huge amount of equity related funds, and that resulted into such a rise. We think it is a repeat of that. Domestic and vectors domestic and vectors were in there for the last seven years. That has kept the kospi index below 2000 or around 2000 for the last 10 years. Right now we are seeing domestic investors in trex interest rising rapidly, with all of the things happening with covid19. Haidi you mentioned reraising briefly, is that a real soontation we will see in terms of categorizing korea as an advanced economy . You had that massive discount story, but do you have expectations about what happened . I think the speed of that should accelerate. Seeing what we are is happening to the Corporate Governance issues. Some have scrutinized on that. We are seeing improvement of the corporal governance throughout the korean tables. Seeing the dividend payout ratio rising for most of the companies. Clearly, that is one factor that is affecting. But also, korea is one of the countries that is fully open to the Foreign Investors, and the deregulation is to the extent of the level of advanced countries. Hopefully we will see the process accelerate because of the covid19 impact in the occurring level. Does the risk of exporter deflation to korea being exposed, does that potentially pose Downside Risk for equity . Daniel yes. I think that the level of the environment is a concern. But nevertheless, if you look at the overall undervaluation of the equity, based on earnings are the future earnings, and if we compare that countries,vanced korea is at this. Looking at the overall structure of the population, and that the is theate is low, that case for if you look at taiwan, its the same case. Its happening also in china and other countries. Nevertheless, koreas discount is much larger than any other countries because of all the past issues of governments, and other issues of dividend payout ratios. Yes, there is a structural concern, but i think that the concern is much bigger than actual reality. Arehink that these things canceling out each other. If the Earnings Growth comes back, then i think the korean markets can cooperate. Shery now that we have the longer,ing low for will this given extra boost . We have seen the pace of recovery in asian markets accelerate in the last few weeks. Yes, right now, i am recommending, in terms of the asian market, continue to focus on the manufacturingbased taiwan, koreah as and china, maybe even be a mom maybe even vietnam. Any countries that focus on the material levels, we dont really recommend those countries because of the current situation. Any countries with the i. T. s, the buyer industries, any internet related, all these countries with a Strong Manufacturing base are doing much better, given the fact that the industry structures are changing with the industry revolution happening on a global scale. For the asian countries, we are focusing on those countries with a Strong Manufacturing base. Haidi always appreciate your time. With us. O it is debut day in hong kong. We will be discussing the prospects. Coming up next on daybreak asia. Wave. Of a new virus why experts say surges in texas and california are directly linked to the economy reopening. This is bloomberg. You are watching daybreak asia. President trumps top Economic Advisor says he does not see systemic racism as a problem in the United States. The white house is looking at possible reforms of police behavior. The president is expected to address these things in a fundraiser on thursday. George floyds brother called on congress to act. Im tired. I am tired of pain. Pain you feel when you watch Something Like this. When you watch your big brother, who you looked up to for your whole life, die, die begging for his mom. I am here to ask you to make it stop. Stop the pain. Stop us from being tired. George called for help and he was ignored. Is stiller news, china buying soybeans despite tensions with washington over the coronavirus and future of hong kong. State and private organizations bought at least 10 cargoes this month, with three in the last 24 hours. There are fears that it could hurt the phase one trade deal. The leading trader says the deal remains on track. Simplifying the Olympic Games to take the effects of the virus into account. Iocnizers say they and the have agreed a basic approach to make the event more simple could save more than 200 they say more than 200 subjects have been identified for straightforward games. They declined to say how much expenditure would be saved. News, 24 hours a day, on air and by quick take on bloomberg, by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Since the pandemic swept over the world, over seven Million People have been affected and 400,000 have died. Arewaves of infection appearing. Lets cross over to selina wang in beijing for more. This much dreaded second wave is really materializing. Where are we seeing these new hotspots . Even though americas case count has been slowly rising, there is a concern around these local surges. We are seeing rising covid cases in 22 states. Texas, on wednesday, reported 500 new cases. Thats the highest oneday total. Newida reported about 8500 cases. Thats the most of any sevenday period. California is seeing hospitalizations at their highest since may 13. Arizona has spiked in the past two weeks. So, that being said, the correlation between states reopening and a surging cases has been uneven. In some states, including georgia, there has not been an increase in cases as the state has relaxed restrictions. Variations. What is clear is that the pandemic is far from over and increasing in testing in many states are not keeping up with the pace of growth in these cases. I just want to point out Anthony Fauci has called the pandemics worst nightmare, saying this infection will not burn itself out with more Public Health measures, but that we will need a vaccine for the entire world, billions and billions of doses. Shery we have the european russialaming china and for spreading misinformation about the virus, what exactly did it say . Selina in this report, the eu says that these countries are among foreign actors that have trying to tried to undermine democratic debate and spew Misinformation Campaign around covid. And the eu has been increasing pressure on platforms like facebook and twitter to remove misleading content about the their site. And the eu has been making a broader push to more generally fight this information and hate speech online. This report added that misinformation from this pandemic has been feeding on people with basic anxiety, which has been exacerbated by the fact that people are forced to stayathome and resort to social media to access information. In a separate study, this highlighted that they were finding evidence of this coordinated push by official chinese sources to disrupt claims of the pandemic and promote its own response to the virus. They have been amplifying conspiracy theories that link the pandemic to biological warfare, 5g technology, and fueling antivaccination sentiments. Our china correspondent in beijing. Though ecb is the latest to come back come out with a grim assessment of the economy. It is warning growth will contract 6 , and that is the best case scenario. A second wave could mean a 7. 6 plunge. Here is the outlook. Until we have a vaccine, or a medicine, we are in danger. Beiously, the focus has to on accelerating the research in order to get the medicine or the vaccine as soon as possible. In thein the mean meantime, do you worry about deflationary pressures . Angel not the time to worry about inflation. Right now, you throw everything you got at the virus. You hit it, you kill it, you win the war against the virus. In terms oferything finance, in terms of budget resources, in terms of health the sooner youse beat the virus, the less expensive the recovery will be. And also, you will be able to cure the consequences of the virus it self in terms of unemployment. York. D morning from new i am absolutely fascinated with about theid at oecd amount of fiscal stimulus as compared to gdp. The variations are extraordinary. Who is getting fiscal stimulus right . The question is, that in many of these cases, what you call government stimulus, is common to a very great extent, guaranteed. Or liquidity loans, and who will notse become what i call deficit numbers, or they will not become there isficially until some kind of payback, or in some cases, the facilities are built to become deficits to the extent that, for example, the companies can maintain the employment. Those are meant to become, basically taken up by the government. In many cases, in most of the gdp are5 , 30 of the meant to be paid back to the banks, or to the development banks, and they are only guaranteed by the government. The numbers are not comparable in that sense. If you take what i would call the heart expenditure measures, over the changes all place, from very little to very large. You are truly one of the latins in the world on america and the challenges of south america. The pandemic statistics from mexico are horrific, led by le, which is just simply falling apart. What does oecd think needs to be done to assist a greater self america in turning around this crisis . Sec. Gurria first of all, they aware, and that means the leadership has to share these views, they have to act accordingly, and, within the constraints that they have. Within the constraints, this is to then apply measures like confinement, social distancing, etc. The question, again, will not be solved until we have a medicine or a vaccine. But, the problem in latin , and the problem in africa, and the problem in asia is that its very difficult to confine these people. They live in very close quarters. Very close proximity. They have to go out every day in order to make a living. That makes it more difficult. Shery that was the oecd secretarygeneral. Ceo and the leading Global Company ceo will be with us. This is bloomberg. Shery lets get a check of headlines. California theme parks will begin reopening on july 17, after months of being closed because of the coronavirus. Customers will need to obtain reservations in advance for the original disneyland in anaheim. Disney california Adventure Park as well. Disney world in florida will begin a phased reopening next month. Nighttime spectaculars remain postponed for now. Itrbucks fell after saying expects the coronavirus followup to hit sales this quarter by more than 3 billion, with any recovery stretching into next year. Adjusted losss an of . 65 to . 70 a share, with operating income down more than 2 billion. Starbucks is revamping out to stimulate demand as economies reopened. Inreport into this england, saying clubs will hit one billion pounds, 1. 3 billion from the coronavirus. The premier league spin suspended since march has been suspended. Dragare expected to heavily on revenues. The season is to resume in the coming days. Up next, the fed as to the dollar with a greenback near its lowest in three months. Ubs head of commodities Dominic Schnider joins us to discuss. This is bloomberg. When you say what youre in the mood for, the xfinity voice remote will find exactly that. Happy stuff. If the groups happy, im happy. You can even say a famous movie quote and it will know the right movie. Thatll do, donkey youre expecting prince charming . You can learn something new any time. Education. And if youre not sure what youre looking for, say. Surprise me. Just ask what can i say . To find more of what you love with the xfinity voice remote. We are not about raising rates. What we are thinking about is providing for this economy. In this meeting i think they are looking ahead and anticipating multiple scenarios in terms of the evolution of the economy. Probably do not yet have a clear consensus on whether to do, for example, rate caps, or exactly how to express Forward Guidance. Im sure they had a thorough discussion of that. They are in effect pausing for this meeting and perhaps the next before they actually begin to use other tools in their bag. Powell,ems to me jay his former guidance was very clear when it comes to the economy. That Forward Guidance, does that come back to bite them . They did not guarantee it. They basically i think if you powell and others, their policy statements are always conditional. There is a much better outcome in the economy, they will reconsider. Policys no guarantee the rate will be a zero for two and a half years. As they see things now, thats the way they are thinking. We have heard a suggestion just a few days ago. Have a backguage, themselves into a corner where they are not willing to rock the boat from risk assets . Was at the fed, may experience, certainly under jay , i think it is clear they are going to stay on their mandated objectives. They are going to stay on the real economy. They are going to follow the financial economy or the and not makekets policy that is designed to have an effect on asset prices one way or the other. In the press conference today, powell emphasized that. They assured the idea they would undertake policies to affect asset prices. In that sense, policy is a little bit uncoupled from how equity markets particularly are going to go. The concern would simply be Financial Stability if there were an anonymous selloff of some kind. Talk about yield curve control, not just in the u. S. Do you need to put a caps on yields . Because you are issuing so many bonds to pay for all the money, the stimulus you have got to do after you put the lockdowns on. Do you think that is going to guide the fed as well . Is that such a big concern for the fed, that you have to keep yields low because otherwise its going to cost you a lot more money to finance a much bigger deficit. I do not think that is the foremost issue in their minds. I think the consideration of yield curve control relates to maintaining financial conditions across the spectrum of interest adequatelyare accommodative to support the recovery. That is Dennis Lockhart speaking to us earlier. Let us take a look at the asian trading day. The feds warning of a long road ahead. The region snapping an eight days of gains. Despite the improving export picture we saw for june. The kospi is seeing at the decline from samsung and other big names. We have trading looking volatile with june options expiring today. Feds dumbest the decision on treasuries, we are seeing the 10year around 32 basis points. Aussie bonds off nine basis points. Ack below 1 the curve is flattening. Check out that yen trading near a onemonth high reaching the 107 level. The hong kong dollar staying strong with a weight differential for the u. S. Staying wide at 69 basis points. We have news out from jd. Com. Later this morning we are waiting on a trading debut in hong kong. Check out the bloomberg dollar index. Seeing s p off by 0. 4 . Let us get more on the asian reaction to the fed. We are joined by ubs head of commodities and apex with us. Great to see you again. A marketlike this is that wants to sell at the moment. They do not have any reason not to from the fed overnight. Absolutely. The fed is a little bit of a green light that investors can continue to look for a deeper dollar. We are looking for midsingle digit weakness. Basically it gave up all its the second half of 2008, early 2009. That is the template we need to look into. I would not be surprised actually. Inh all the gains we got 2018 and 2019. You see the n outperforming in the asian complex . Know, the yen was a good performer. Havenitial development we had in the first part of the year. Risk on is running against. Is clearly bias Forward Guidance down. 104,ryen heading toward dipping a little bit lower. People refocused on the Interest Rate differential could justify the move toward the hundreds the 100 mark. ,ou also need to be mindful markets are already long yen. I am more worried about the where the canadian, market is on the speculative side still short. Risks to the aussie then . That is through that 70 ceiling, then below it. Political concerns there as well. Do you see that sustained gains for the aussie . At what time to be see the rba drop rates . The rba could still go a little bit more. When we look at our september forecast, it is more of a consolidation. Over time, we still think we are heading towards 0. 73. The aussie enjoys twin support. The argument is the support toward when you think about the great improvement by oil prices, you can even justify aussie going to 0. 80. Fore is broad support polls, something you might want to look into. Fair enough. The rba could be a little bit they could say we dont need to do much, but already compared to other central banks, they are signaling, we are here to help. Seen the rbave moving in terms of the estimate. It is an interesting currency to sell to the downside. Longerterm outlooks targeting 0. 73. Overnight the u. S. Inventories, it worries if prices inch higher, we are going to see more shale players come back. This distantus view the rebalancing act is going to be a bumpy one . Admit, it is not that we did not expect oil prices to recover. We do look for september, somewhere there, but the recovery was too quick right now. As you mentioned, inventory continues to crawl higher. Look at the latest data out of the u. S. You have petroleum inventories, crude heading to 2000 100 Million Barrels. With inventory still grinding higher, gasoline demand is recovering, we were at 5 Million Barrels per day, now we are at 8 Million Barrels. Seen thee have not yet full rebalancing act complete. Intoll look for a pullback lets say one or two months looking for brent heading back toward 32 and wti 29. When the market realizes a lot of the financial flows. Does your view on gold change at all out of everything you heard from jay powell overnight . Anything they said on Inflation Expectations . Absolutely not. We are still looking for gold heading to 1800. For stronger gold price, or at least making sure it investment demand continues , remains if Gold Central Bank Balance Sheets continue to go higher. They are likely to go higher. Second, the fiscal side is still at an unsustainable level. Something one does not look at enough in my view. And then we can think about opportunity cost. If brent stays where it is for longer, if real rates expectations shift to more negatives, conditions are here for gold for going to 1800. Before, dollar should still be a weaker one. The relationship is a little bit more. Gold ns intact and particularly when you are an equity investor. Some moves in the fx space in hong kong. We are looking at the hong kong we sawweakening after intervention from the Hong Kong Monetary authority, increasing their injection to 3. 7 2 billion hong kong dollars into the Banking System after we saw the hong kong dollar return to the stronger end of its trading band. That is according to the hkma. We are seeing that weakening of the hong kong dollar in response. Renewing an attack on the hong kong dollar. One to watch throughout the course of the trading day. Next, debut day for a company in hong kong. We will be getting the outlook on offerings. This is daybreak asia. The second wave of coronavirus cases is starting to appear in the u. S. Than 2500rted more new infections, the highest oneday total since the pandemic started. The latest countrywide virus tracker puts u. S. Virus cases at a fraction under 2 million. More than 112,000 people have died. The oecd says australias leading the selloff. Governments around the globe must institute wideranging reforms. They warned the government not to pull emergency spending too soon, saying more maybe needed. The oecd wants reforms in the labor market and competition. Spending in new zealand surge last month after the locked down, but levels are main below previrus levels. Debit card purchases rose 79 from april following a 46 drop that month and a 3 decline in march. The value of spending was almost 10 lower than in february. North korea is ramping up , with then the west u. S. Told to stay out of interkorean issues amid rising tension between pyongyang and seoul. The north has refused to answer calls with their shared Liaison Office. Washington has repeatedly rejected calls for an easing of sanctions on pyongyang. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Back to you. In hong kong, the launch of two multibilliondollar deals. Ease later today, while jd. Com is expected next week. Mckenzies asiapacific chair. Ive, great to have you with us. The retail description for net ease. What does this kind of reception indicate when it comes to appetites in the offerings in hong kong . A comeback to the market. There was a time initially when covid19 lockdown started, there was a dip during our february until april. , there wasties reassessment of the impact and also operations and all that. The investors also became more cautious at the time. Certainly in may i think it has seemed to slow down due to covid19, that situation. Fundraising has also resumed. We are seeing numbers which supported a comeback of the market as well. Subscriptions, has picked up in may. Actually outperformed january numbers. Certainly very good signs. Are we seeing pentup demand . We had everything come to a stop. You could not do roadshows. You could not do on the ground due diligence. Been ones that have been scrapped because Market Conditions have changed so dramatically from the start of the year . Definitely. In particular in march we saw volatility in the market because everyone was wondering what they have to do. Which, a lotell, of delays, technicalities, people trying to find ways to do the deals. Many of these activities have gone virtual, which i think is a good sign. Aey are still trying to find way to get their deals out of the market. We were seeing facetoface roadshows become virtual. Listings have become virtual, online hitting. First while the Hong Kong Stock Exchange with the 23rd of march, shortly after covid19 was announced as a global pandemic. People are still very keen on pushing the deals. One big caveat is for those which have not started their listing application work, they certainly would encounter delays given that travel restrictions remain. It certainly has delayed for having to list in q3 or q4. I think financials is our biggest problem. Either they got hugely impacted, in which case the financials are only good for six months, if they left that window, they will have to update. Im going to jump in. We are getting breaking news from jd. Com said to be guiding their pricing in their hong kong listing at 226 per share. We are just getting that news now as we continue to talk about the appetite for ipos. The geopolitical damage, we had the nasdaq changes which froze a bill being passed in the u. S. Has that encouraged do you expect this to be a sustained exodus of Chinese Companies coming home . Certainly i think it is the Hong Kong Stock Exchange. Washe past the system impossible. Now it has become possible. That is why we saw alibaba coming home last year. Easier fores it these giants to come over to hong kong by way of listing. Andre seeing netease jd. Com. The possible changes the nasdaq would lay a big part as well. It would make it harder for Chinese Companies to list. Some of them which are already listed may be at risk of being delisted. I think that is why for some of the giants are some of the some of the or currently listed Companies May start thinking about a backup listing, whether that may be beneficial to them. The Hong Kong Stock Exchange or the shanghai Stock Exchange and venues in singapore, taiwan, they may be able to benefit from this as well. Areas ineen growth this space. Really appreciate your time. Ong joining us. Plenty more to come. Re to come. Before we handed over to the china open, we are seeing some downside after the fed gave no new measures when it comes to their monetary stimulus plans and in fact a more dire assessment of the economy. One stock we will be watching when it makes its debut will be netease. These lines from jd. Com. Regarding the pricing of their hong kong listing at 226 hong kong dollars per share. That is lower than the 236 hong kong dollars that was the maximum price and makes it cheaper than the u. S. Traded equivalent. That is it for daybreak asia. We are going to look ahead to the start of trading in hong kong, shanghai, and shenzhen. It is not 00 a. M. In beijing, shanghai and singapore. I am Tom Mackenzie with david ingles. Asian stocks slide as investors waive the feds ultradovish message. Says rates will remain near zero through 2022. Virus cases continue to rise with u. S. Infections alone nearing 2 million