California, florida, and arizona. There are the simple facts that valuations are lofty after 30 rise off the lows. I would notice the cyclical rotation weve been talking about in recent weeks, the flood into cheaper areas of the market has done a total 180. Does the growth sectors stocks it is the growth sectors stocks. That is the worst threeday losing streak since march 18, before we hit the bottom. Dragging the least was the classic safe havens. Consumer staples, communication, tech, they are still down 2 to 3 but that is relative outperformance on a day like today as we are seeing investors flock back towards the stayathome stocks. Kroger up more than 2 . Netflix getting a lift. Butox is flat on the day, it is those virus safety plays investors seem to be interested in. There are a few stocks investors are interested in. Theyre only 11 stocks in the green in the s p 500 at the moment. David thank you kailey leinz for that grim market report. A lot of people focus on washington when it comes to what is going on with the economy. The fed has done what it will do and will keep going as far as it can. A lot of people are asking congress what it needs to do next. For answers, we turn to libby cantrill, head of Public Policy at pimco. Always great to have you. Does all of this news put more pressure on congress to have to step up on the fourth phase of stimulus . Libby that is exactly right. What we heard from secretary mnuchin yesterday on the hill, what we heard from fed chair powell yesterday and his press conference, all pointing to the fact that congress does need to move. Our view has been this is a question of when, not if. The when might be taking a little longer and subject to more partisan rancor than the previous bills. It looks very likely something will get done. It will probably get done by the end of july. There is the exploration of federal Unemployment Insurance that happens at the end of july, and that will be an impetus for policymakers to come together. He question of when, not if certainly the market downturn and some of the reports outofstate with a second wave could accelerate that. David we have that july 31 deadline, we also have a lot of state budget do june 30 and tax payments due july 15. Time is wasting. At the same time we have some sort of ask on what the policy will be. We have nancy pelosi saying 3. 5 trillion. Messages out of the white house and 1 trillion, where is it likely to end up . Libby it will be interesting to hear her perspective. Our view has been it will not be that 3 trillion number that passed the house recently. It is probably going to be closer to 1 trillion, and a mix of policies that are familiar and we have seen in the previous rounds of stimulus, whether it is funding for state and municipalities and an expansion of Unemployment Insurance, maybe more money for the ppp and small businesses, but probably closer to the 1 trillion number you cited, and not necessarily the 3 trillion figure. Has the political dynamic on capitol hill shifted, both because of covid19, but now we have this tragic event with george floyd in minneapolis, and the demonstrations in response to the proposal for Police Reform, has it shifted the weight on capitol hill about reaching out to the less fortunate among us . Mark libby in some ways the killing of george floyd and covid19 in general has underscored some of the fragility and some of our social justice policies and social safety net. That could have serious policy implications, especially in 2021 should there be a switch in power in government. Has givenorm this Police Reform. Not clear where that this has given Police Reform new life. Something more incremental than revolutionary, but also President Trump going into a reelection. His approval numbers over last few weeks have softened. I think the political pressure for President Trump to act on this will likely increase, and it seems like the white house will announce something in the next week or so from a legislative and executive perspective on this. Fortunes his political are dependent on this going into his reelection. David thank you so much to libby cantrill. Always a pleasure to have you on. She is head of Public Policy at pimco. Next, we will talk to Darren Walker, the president of the Ford Foundation about his quest for social justice and what corporations can do to help him. That is next on balance of power. David this is balance of power on Bloomberg Television and radio. When Darren Walker took over the Ford Foundation, he direct did the charity to say lets address the question of social justice. We knew he was right, but we did not know how urgent the need was until the tragic killing of george floyd in minneapolis. Now we are all focused on the question and we welcome Darren Walker back to bloomberg. Thank you for being with us. You are totally right. It is more urgent that it has been in the past. Talk to Corporate America. What can Corporate America do . We have heard a lot of ceos talk about it, a lot of ceos pledge money. Beyond the money, what can we do to change the system . Darren we have to start by throwing out the old playbook for crises like this, which involves a corporation assembling a group of africanamericans on a conference call, issuing an apology to the organization , an apology or statement of solidarity, and making grants to the naacp and the urban league and getting back to business. That playbook will not work on this occasion. On this occasion, ceos and boards will have to look deeply within their own policies and practices. How do weemselves transform ourselves. Transformation is what will be required. That will require incentivizing performance as we do in every other facet of corporate life. Boards to incentivize increase diversity, we do ensure theireos to csuite are diverse. We do that because this is a market. Markets have investors. I am hopeful that investors who have input in the market, investors like blackrock and many of the large fund managers, the Asset Managers, altogether say it is time we do better in Corporate America. That means literally doing what we do with everything else, counting and holding ourselves accountable for delivering on those targets. Definitely need to see some diversity at the top. That is africanamerican and hispanic i know you would agree with that readily i think to this day fortune 500 is only four or five africanamerican ceos. What about some of the policies advocated in washington. What about tax reforms and Capital Gains tax and increasing corporate taxes because doesnt there have to be some redistribution of the assets . Darren we do have to have a conversation about our economy, because as a capitalist, a proud capitalist who believes that capitalism is the best way to organize the economy, i also believe the current kind of capitalism we have in our country is not working for america. Gainsdelivering outside for people like me and you, because we have done incredibly well. If you own assets, if you own securities overlays last years, we have done terrifically. If you are the average working american, you have fallen behind. If you are the average person in the middle class in this country , you have fallen behind. We have to think about the policies, including tax policies, that ensure we have shared prosperity in the country. We are not generating any Economy Today that is delivering on the promise. That promise is essential for this country to survive. Point, and powerful you take this beyond the csuite, which is terribly important to those of us who own assets. As a practical matter, that csuite response to people who own their shares. Are you seeing a movement within Institutional Investors to andnd accountability, transparency of the corporations . Darren i think it is too soon to know. It will be interesting as many of the Asset Managers publish their annual letters, as they speak at conferences about their priorities, it will become clearer whether there is seriousness associated with some of the platitudes that so many have offered. Platitudes are helpful only if they are followed up with concrete action. Sense thatou have a this time may be different . Lets be honest. We have seen other instances where people said we will do better and then people go on and get distracted and go back to their old ways. Is there reason for hope that this time the momentum will continue and increase rather than dissipate as we Pay Attention to Something Else . Darren i am very hopeful today about my country. I am hopeful because i believe the issue of racism, which throughout our history has had the air of deniability, racism after the murder of george floyd on that street in broad daylight , the perpetrator being videotaped, new that he was being videotaped, but assumed he could kill a man, a black man with impunity. Iso not believe racism deniable as an option for white americans. I believe that for most white americans, it was a heartbreaking scene to see that. I do not think for most white americans, a racist country is what we want. I do not think for all of us country that of a is not guided by the principle of justice and opportunity and fairness, that is not a country any of us want. , asant to live in a country the poet Langston Hughes wrote, let america be america. When that happens, when that day comes, we will all rejoice in the idea of a beloved community, one where each and every one of us has an opportunity to get on that mobility escalator, the one i got on. Inm in many ways a believer what is possible in america. I was born in the bottom 1 . Now i am firmly in the top 1 . I do not want to be a unicorn. I believe the life i have had and the privilege of living in this country and dreaming and having the possibility of realizing those dreams, that should be for every american, regardless of our zip code or race. Darren, thank you so much for being with us. That is Darren Walker, president of the Ford Foundation. Later on we will talk with nancy pelosi about the justice and pleasing act she is proposing. Power onalance of Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Goldman sachs has told its employees it will start bringing them back to the office in new york and elsewhere in the united date, which raises the question so Many Employers have how can you do that, how quickly can you do that, and how safely can you do it . Sam palmisano, former ceo of ibm who has been working on tech that could help us do just that. Talk about this app you are working on and how it could address some of the issues facing employer and employee. Sam thank you for having me. It is a critical issue. A lot of the conversations have been about economic recovery. You cannot recover unless you get people back to work. The key is how you do that safely, and how you do it with the workforce . Most of the solution has been restricted. You hear people talking about order to engage of the productivity your workforce, the operations. Manyve worked on this with companies in multiple industries. It has gone from entertainment to sports to construction to academia, i could go on and on. We have learned a lot. We have learned a lot. The learning is there are lots of solutions, perimeter kinds of testing, temperature testing, lesson is you need to have a total enterprise solution. You need testing, you need symptoms coming in travel, maybe Contact Tracing. You have to put that in a policy framework that allows you to permit people to enter your facilities. The key is multiple inputs in the policy engine. How is it work to employee . How do you protect some degree of privacy or do we need to give up some privacy . It isemployees totally private. It could be an employee from a to be a fan, youre the only one to see the actual conditions. The way it works is you take the variables i discussed and you create a qr code. A Health Care Provider would provide a test. The employer does not see any of that information. Ou enter your own symptoms the employer does all of that. If the individual wants the employer to see that because their hr deposit once to help them lineup the test, they have to agree. It is totally private, totally compliant, meets all the standards that are necessary from a privacy perspective. David even if it is anonymous, is there some way for the employer to know if he or she has a problem in someplace . They cannot on the individual level. They can on the category level. They will be able to see the demographics of their workforce and how they are from a wellness perspective, but they can never get to the individuals themselves. If the individuals want to participate, they want to opt in, either for Research Purposes or working with companies as far as making themselves healthier, that is up for them to decide. The employer can only look at large segments, not down to the individual level. It is important because you do not want this to be china. They have apps in china that are very invasive. I do not think they will work in our society here or in europe and those kinds of places. David very important point. Lets expand it out to attack more broadly and what tech can do, are they doing to try to help us fight this covid19. Right now we are seeing an increase in cases in florida, texas, arizona, florida, california. Can tech help us fight against a possible second wave . Sam what tech could do is can project where this thing is migrating and where it will go. When i was working with ibm, our Research Organization did a lot of work as to the migration and the path this will take. There is a lot that can be done for predictive models. There is a lot tech can do from the perspective of the achievements are the vaccines to the markets faster. We have advanced ai capabilities into the analysis and the trials of those things, but also accelerate the ability for treatment as well as vaccines as we get into the future. There is also a basic role for tech. We see it today. As far as interactions is concerned and entertainment, interacting with people. Things like webex resume where there is a role it can bring people together from a work perspective or even enjoying a sport. Look at what was done over resume for the online draft over zoom for the online draft with the nfl. We can engage today in ways we were not able to engage in the past. David you see tech evolving quickly in response to some of the needs in society . Is it changing . Is it investing . Sam it is a great question. The question is are we a transitory moment or are we at a transition . I am glad you asked the question because you can look at a lot of these things that are exploding and say they are transitory. The fact that we have all of these people that need to interact now is a transitory thing. Zoom is way up. They are exploding. What will happen when it is over . , think the lesson in this especially from the investor perspective is it will be the transition. What we have learned is the Tech Companies that were further down digitization are faring better. Obviously you see this every day. Commerce and you see it in health care, but we also see shifts in education. I think with tech, i would forecast, although i could be onng, ive been wrong a lot tech because it moves so that i do believe will do better as we come out of the thing. David thank you so much to sam palmisano, former head of ibm. Coming up next, we will have an exclusive talk with the speaker of the house, nancy pelosi. This is bloomberg. David this is balance of power on Bloomberg Television and radio. Lets go to mark hampton. The top uniformed officer in the United States military has apologized it for taking part in President Trumps church folk photo op last week. Authorities used tear gas and rubber bullets to clear protesters so the president , the general, and others, could walk to the church. In the u. K. K, Officials Say coronavirus contact tracers are off to a rough start. Tracers were given the names of more than 8100 people but about 5400. The team identified more than 31,000 people who came in contact with them and devised about 85 of them to selfisolate. India is seeing a spike in coronavirus cases. The country reported nearly 10,000 new cases over the past 24 hours, the highest since the pandemic began. Than 286,000 more confirmed cases and 8100 deaths. Limitedtes have lockdown 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. I am mark crumpton. This is bloomberg. David we will speak exclusively with nancy pelosi about the justice in policing act. Bloomberg television is presented by mercedesbenz, the best or nothing. David this is balance of power. We turn now to the speaker of the house of representatives, nancy pelosi. Thank you for being back with bloomberg. I want to start with the policing act. There has been an awful lot of anger expressed but one thing that has come about is a lot of momentum toward reform of police. Ae you going to be in position to take advantage of the moment and have structural reform . Pelosi thank you for the question. One thing that contributed to the unrest and the anger of it all was the disparity in the coronavirus. That so many people of color had died in the coronavirus. That aggravated the situation and i mention that because three months ago, there were 38 deaths from the coronavirus. Today, there are over 113,000 deaths in america from the coronavirus. Act we put forward goes right to the heart of the our communities of color and it is part of the answer to some of the injustice that has caused so much anger. The justice in policing act, i am proud of the work of the congressional black caucus, the Judiciary Committee. The black caucus has had these on offer for a long time but the public sentiment is so strong that we believe we have opportunity to get them past. They involve no chokeholds, noial profiling must end, knock warrant in terms of drug cases, issues like that, issues that relate to keeping the data, having a registry of First Responders who have misconduct so theyre not hired again, and another jurisdiction, the list goes on about violations to be banned, about measures to be taken so that we know and we all we are served by First Responders, Public Safety is a requirement that we only American People but the police have to police themselves and we look forward to working with them as we go forward. As we have talked about various fiscal stimulus bills that youve initiated, you have emphasize repeatedly how important it is to be bipartisan bipartisan. There are even reports that the white house is working on maybe an executive order. Is this something where you want to work across the aisle and come up with a joint response . Speaker pelosi always. It is always so much stronger if we can work in a bipartisan way. Nonetheless, a recognition that there has to be some change. To the chair of the congressional black caucus, as well as the chair of the subcommittee of the Judiciary Committee working with jerry nadler. To haveit up to them their actions with republicans in the house as well as the senate, and hopefully with the white house. We do have an issue that relates that immunity doctrine protects some Police Officers found to be engaged in misconduct from any, shall we for exposure from families a lawsuit. That is an area where we will but some differences hopefully on others, we will not and hopefully we can find common ground. The American People deserve and expect that. They are watching. Them, we havew heard you, we see you, we have listened, we have learned how important is this to you, and we will do something about it. That is a question i was asked by George Floyds brother yesterday when he came to testify before the Judiciary Committee in the capital. Said, will this become law . What makes you think so and what is different . Different is the complete public of the injustice of it all and the public outcry for change. David any of us who has seen the video, not just of george floyd but of other instances of lease misconduct, we know there are some instances we have to correct. We have to get rid of them. At the same time, the vast majority of Police Officers are doing a hard drive hard job to the best of their ability. How difficult is it on the one hand to police the police, and also not undermining them and being antipolice . I think mosti Police Officers who are conducting themselves in a way ast could be viewed publicly responsible do not want to be painted with a brush of some bad apples who might be there in the mix. Policing the police is a havensibility that they but i also think we have to recognize there is some races and that has to be addressed in our society, as well as in our Law Enforcement community. When we can rid ourselves of that, it will go a long way to having justice in our policing. David are the police a help or a hindrance in the reform of policing . Speaker pelosi the president of one of the police unions, they put out a very positive statement about our legislation. We did not know what they might say but it was very, shall we say, open to what we are proposing. Ready to have the discussion. Overwhelmingly, Police Officers are there to protect us. Their role as guardians and not warriors. We have to hope for the best in that regard and that they can be part of the discussion. In some places, it is different. Union officials have been very, shall we say, more protected than they need to be of bad conduct. We have to make those distinctions. David if this bill became law, would it have prevented George Floyds is murder in minneapolis . Speaker pelosi it was explosive, pivotal, and inflection point. It has made a tremendous difference. For people to see a person murdered, martyred right before our very eyes, it may have been 46 seconds. It is a larger long time. It was eight minutes and 46 seconds. Numbers thatthe people have turned out again and again across the country, for weeks and across the world, somehow or another, his death was a tipping point. His family misses them very much and they would rather he be here. Nonetheless, they do not want his death to be in vain. We have to be sure our legislation is passed so other lives will be saved. Lets talk about the heroes act that you mentioned a couple of times. We heard from secretary mnuchin that he believes some warm is needed. Where are you in negotiating with the white house, the republicans on the senate side, to get moving on some version of the heroes act . Speaker pelosi we believe the heroes act is a very disciplined and focused and necessary set of provisions. And that everything in there is something standard protection. Republicans have voted on before. The republicans put forth their bills, people say that is the first offer. Bill, theyforth my say why isnt she doing it in a bipartisan way . Their participation but it is absolutely essential. They dont do it, it will cost more. Not only did secretary mnuchin say we need additional bipartisan legislation. The chairman of the fed reiterated what he said before. Power toials have the make decisions about where we go i thinkiety will stop it may require congress to help as people are losing their jobs and many of whom will not get their jobs back. Whether we talk about testing, tracing, treating, isolation, to end this violence to open up the heroes, honoring our healthcare workers, teachers, workers, First Responders, the list goes on, but helping state and local governments, whether it is about putting money in the pockets of American People with Unemployment Insurance and direct payment, with food, food stamps, this is all necessary and all of it voted by the republicans before. More is needed but if we do not we willtesting done, not defeat this virus and we do not have a vaccine now. We pray and we have great minds at work working on it but we do have testing, testing, testing, and the administration should take our Strategic Land to do that and bring kids back to school to get the job done for the American People. What you say about testing and Contact Tracing may be more more than ever. Maybe covid19 is gaining in some locations. We heard from secretary mnuchin saying we will not shut the economy to matter what. Do you agree with him and are we are are we in a position to say we will not shut down . We have to open it up safely because otherwise, we will go back and forth and people will lose their lives. The American People overwhelmingly have said they are more concerned about their than going back to work, though Everyone Wants to go back to work or back to school. That is not even a discussion. How to do it safely is a discussion. Never, nothing, we not doing anything originally. Then they said well, 1 trillion. It is not enough. And then we do not know when we will do it but we need something soon. They have changed their tune on it and the American People will demand, we have bipartisan support across the country for everything we are doing and i will remind you that everything for state and local government to honor our heroes and keep their jobs, cost less than half of what the republicans had in the tax scam to give the tax cuts to the wealthiest people in america. 83 of the benefits going to the top 1 . Its is a stimulus to the economy. Go look at bigger. Gov heroes act and see what this means to you where you live, in your state, in your county, in your city. Again, half of the tax cuts. Thank you. Always a privilege to have you with us. In the meantime, the price of about 9. 5 last checked. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. We heard from jay powell yesterday and he gave us a sober view of the economy, where it is, and where it is headed. The professor of club you Business School but before that, he was chair of the council of economic advisers for president george w. Bush. Always a privilege to have you with us. To add to what jay powell said yesterday, we now have crude down almost 10 today. It is fair to say the economic recovery looks like a night nike sign. In a gradual upturn. Certainly very promising, but i andk it will take months may be a yearandahalf or so to recover the level of gdp and employment. It is not as bad as many may fear, perhaps, but nor is it the recovery. With the price of oil falling, you are seeing structural problems in the oil market supply and demand imbalances, along with a feeling that Global Demand might the week for some time. Is the fed doing all it can . It has done a lot. Jay powell indicated he will not take his foot off the accelerator but isnt doing what it should be doing in your opinion . If i can be an economist for the moment, it is doing the right amount, too much, and too little all at the same time. The fed really got on the fast as the pandemic shutdown happened and went into overdrive with traditional monitor policy and with new facilities. Worry it is doing a little too much. We are asking the fed to fix a pandemic, which is a supply shock, as well as some losses from demand, which were better fixed by fiscal policy where i think the fed may be doing a little too little is in standing up the main Street Lending facility, which sounds a good great idea for the Current Crisis given the problems faced a small and ms. Sought midsized businesses. The way the fed is currently structuring the facility, i fear there will not be lenders or borrowers, which is fine if you do not want to lose money but not fine if you want to restart the economy. What is causing that . Lendingasking when the facility is coming and we keep hearing that it will be a matter of days. Is it the statute . Does congress say you cannot cannot afford to lose any money . Quite the upset. Congress and the cares act appropriate 454 billion to the notsury to fed programs, just the main street facility but some of the other fed programs in which the fed might lose money. That is appropriate because the taxpayers need to sign off through congress and the treasury. But the statute did that say that the fed could not lose money. Why would congress have handed the fed so much capital if it did not think it needed it . My fear is the fed is setting up the programs in a way that banks will not find it that appealing and many borrowers who need the money simply will not be able to get it. This is not something they have ever done before and it is hard and isis that that some of the constraints are coming more from the treasury department, which has indicated a conservatism into hesitancy to lose funds. Lets go over the fiscal side. But about congress . Nancy pelosi has 3. 5 trillion. There is talk that the white house is talking about 1 trillion. How did how bad we need from the fiscal side and how big doesnt need to be . At think we need more insurance and fiscal policy. I think the outlook is quite uncertain as chair powells comments suggest. Where i would focus it if we are getting to the number, we need to provide assistance to state and local governments for Health Infrastructure and block rants support to help push the very Large Revenue declines and stop big cuts in state services and state and public employment. We need to continue our support for small and midsized businesses. It is just getting cares act for our other conversation, and we need to reform Unemployment Insurance benefits. It will be unwise for a time in which we are reopening. Says if we were fairly optimistic about a recovery, this is about 1 trillion package. What about the prospect of a second wave . We are seeing an uptick in certain states, south florida, arizona, california. Economists included, are we pricing in the real possibility that we have to shut in again . Something Steve Mnuchin says we will not do not a what . There is always the possibility of a second way. It is hard because of the uneven way that we are testing, it is hard to know what data mean because we know the numerator, people testing positive, we do not know the denominators. We do not know how many people are being tested. But i still think a better tracing and testing i do not think we are going to need to shut down the entire economy again. To haveobably better more efficient strategies by subgroups of the population and parts of the population. If it is a major out rake of the virus, that is different. You have been concerned in the past about demand and permanent damage to the economy. Do you remain concerned about that or are your concerns somewhat alleviated . I remain concerned. I was worried about relationships workers have with her firms, and firms have with their other firms, that they get destroyed in a shutdown and credit markets make it hard to build back up. I remain worried about that. And because possibly a limit rate remains elevated for some time and business failure rates remain elevated. That is an obvious economic challenge and also a major social challenge with politics. David can you do me . Yes. David good. It is clicking in and out. Sorry. Thank you. It is great to have you. Note, tomorrow night, please join us for wall street week. Larry summersby and katie from goldman sachs. Next, we will talk with the head of the Georgia StateDemocratic Party about what went on. That does it for the first hour. This is bloomberg. Welcome to bloomberg markets. Markets ays the s p 500, and pay spirits were state u. S. Jobless claims remain high, underscoring challenges caused by the pandemic. The pga tour resumes play today. We hear from a pga executive on the challenge of restarting after reporting the highest a yet of coronavirus cases in the state. 500 is downthe s p almost 5 . The dow has reached the 5