I included Newmont Mining because gold is nearing 1800 an ounce. Sovereign yields are also down. The german 30 year yield falling below zero again today. Airlines and Cruise Companies make up four of the five worst performers in the s p 500. That is the flipside of the move to safety. Big will have the carriers are burning through as much as 45 million daylight, which is still very weak. The flipside is the bid for stayathome stocks. Netflix and clorox making new record highs. Netflix extending its gain to six days. 2020, even2 in though it trades at 32 times earning as opposed to credit to 20 times for Consumer StaplesEveryone Needs their clorox wipes. David you can never get enough clorox. Thanks to scarlet fu. Lets talk about the big rally President Trump plant in tulsa. The rally was saturday, but he had 6000 people in an arena set up for 19,000. They thought they would have overflow. They have the reverse. Lets bring in rick davis, our political contributor at bloomberg. They really predicted they would be packed and have overflow. The reverse happen. You do not want to have that happen if youre running a campaign, do you . Rick this was an embarrassing moment for the Trump Campaign and would be embarrassed for anybodys campaign. Not only were there expecting a packed stadium, 19,000 people, but they went out on a limb and said they had over one Million People signing up for the event. They kept raising the stakes. Last night they were in full retreat, claiming the kapok poporters the k supporters and took talkers saying only donald trump fans would defy coronavirus and go to a rally and everybody else seem to think that was a poor decision. David until now seemed like donald trump was Pitch Perfect in understanding his base. Has he lost some of that Perfect Pitch at the moment . It seems like people may be concerned about their safety. What about arizona and wisconsin . You have new rallies coming up. Rick there is a big question as to whether the rallies will happen. There is clear reporting around the fact the campaign is in disarray right now for exactly the reasons you mentioned. Maybe they miscalculated the impact coronavirus is having on their own supporters. As we know, donald trump has been all over the map, including at the rally itself saying all of this will go away. In the meantime, the numbers are actually increasing in many states, and overall in the nation itself. The coronavirus continues to play an incredibly Important Role in this election cycle. Those who try to ignore it and move on are going to be at some peril. Brad pascal, the Campaign Manager for President Trump, is used in any trouble . Rick we know donald trump does not like to admit he has ever made any mistakes. This will get blamed on the campaign. Willnows how much of it breed brad pascals fault how much of it will be brad pascals fault. We have seen good reporting that there is already a good amount of disarray associated with brad pascals leadership, including concerns the president had about how much money brad pascal was making off the campaign. If he cannot deliver a full auditorium, which outside of isial media and television, the only way donald Trump Campaigns, i would suggest would be in for some trouble. Andd is is a larger issue how many people you get to a rally . If President Trump support base is worried about their safety, what does that say for President Trump if he gets to november of things do not turn around . Rick there a couple of different ways to look at it. It takes away one of the only ways he campaigns, which of these big rallies. If he cannot campaign that way, how will he keep his base excited . Mark is a big question there. The campaign is not been willing to alter their plan for the general election, even though it has been delayed, which is these big rallies. I would also say there are tangential issues to Coronavirus Impact on the election. Not just peoples willingness to attend rallies, but peoples willingness to show up on election day and vote. We know there is a big move by states to include more mailin ballot activity, which has been by and large wellreceived by everybody as a way to accommodate peoples interest in democracy. Donald trump has been dead set against it, tweeting out even last night it is a danger to our campaign and it will be wrought with fraud if it happens. There been mailing campaigns as long as there has been a democracy. Not many people are taking it seriously. If his supporters are the kinds that show up on election day and do not trust the male, will they vote at all do not trust the mail, will they vote at all . Rick david that is a big issue. What does it mean for the issues President Trump once you go to the four . Supremeing up to the court and will also rescind visas, pushing back on the immigration buns. Will he go back to some of those issues to distract us . Rick it has been surprising he has not spent more time on immigration is a Central Campaign theme. It was almost the only thing he ran on in 2016. We have not heard much about it. The Supreme Court decision has put in play the discussion more, and you can see that with his followup towards trying to limit h1b visas. The h1b visa was usually exempt from the immigration debate because these are the best and brightest from around the world who want to add to the continuity and prosperity in the United States. May is availed attempt to deal with unemployment issues, which are continuing to haunt the administration as a result of the coronavirus. You definitely see the campaign in a bit of disarray, both with the way they Campaign Around these rallies in the kinds of issues they think they will talk about in the general election. I would remind you it is only four months to the election. The idea that theres is not a more focused campaign is amazing for a party in power. David indeed. Thank you so very much. Always great to have rick davis with us. Coming up, we will have David Mcintosh, the president of the fund for growth. That is next on balance of Power Television and radio. David this is balance of power on Bloomberg Television and radio. President trump came to office promising growth, which he did deliver for the first three years or so. Then we ran into this thing called a pandemic. We welcome David Mcintosh, president of club for growth. Give us your take on what can be accomplished between now and the election on the growth front in this country. David m. i think it is critical we continue to see economies reopen and hire employees and build back on the Small Business sector. That will be what determines whether or not we are able to do this. At the same time, we have to watch the reports on the coronavirus to make sure the curve stays flat as States Reopen and counties and cities come back to normal. I think we see a continued decline in the Unemployment Rate you will see people gradually rehiring over the summer to get back to robust growth, which is what we would like to see. I think it will take further ,fforts at not fiscal stimulus but probably some investment stimulus, letting people free up from some of the government constraints they have to operate under an order to have flexibility, as money will be redeployed, and probably coming back into sectors that were shut down. That will help get back to a more robust level. As we watch this extraordinary recession, it is selfimposed, it has hit disproportionately hard on the less fortunate. Particularly africanamericans and hispanics. Even now with employment coming back, it has hit blacks worse than others. Can we have that growth and be inclusive of the entire population, or will necessarily benefit some of those at the top . David m. i think when the growth returns you will see those groups get the better benefit out of it. Are typically living in urban areas where the economic and down was more extreme, the threat of the coronavirus was more extreme. Step, butecessary unfortunately the minority that live in the inner cities and the suburbs, they lost their jobs first. One of the things we have to make sure happens is the people they turned to to get jobs and be reemployed are able to reopen and restart. When that kicks in, when the urban and suburban areas are coming back to normal, you will see their Unemployment Rates also drop quickly. David there is a debate going on about equal distribution of economic goods and growth on the other hand. People think it is a tradeoff that if you will maximize growth , you necessarily have to have increased inequality, which we have had since the mid70s and early 1980s. Other people think in order to get real growth need to have more equal distribution. What is right . David m. the best way to do it is to have unhindered competition. What i find is the disparity increases when you have more Government Intervention and it who have moree money have more political power and they use the political process to benefit themselves. If you allow a greater degree of freedom and competition, then you will see the disadvantaged have an opportunity to enter in. The common examples are popes who want to start their owns startlks who want to their own Small Businesses. If they have to deal with a lot of red tape and regulations a big company can deal with, but a small entrepreneur that may just finished college tried to open up a Small Business, that can be overwhelming. What we have to be careful about is not to block the opportunities for people to rise above where they are at. That is where you get more equality as people are rewarded for their success. David youve been a student of this for some time, going back a ways. If you look at history, do the facts bear out your thesis . In the 1980s, under president reagan, it was a deregulatory income inequality grew in the 1980s. It continued to grow as regulation came back into vote in the 1990s and 2000. Is there any evidence in history that if you have less regulation you will have more equal distribution of economic goods. David m. the problem with that is if you really wanted to get totally quality, they always level down. What you need to do is have opportunity so everybody can see an increase in be better off. That is what happened in the reagan area. John kennedy expressed it well when he said a rising tide lifts all boats. That should be our goal, not necessarily everybody being totally equal. At that point everybody is worse off. David president has prided himself on cutting back on regulations. Just had an executive order further deregulating things. This be an issue in the election . Is this something President Trump to get votes on . It sounds a little bit abstract to a lot of americans. David m. i think youre right. It is the nittygritty behind the scenes. It is necessary. Itll make a big difference in letting Small Businesses open up and rehire people, but it is not the political slogan you take out on the campaign trail. You will see other things dominate that like law and order and the discussion about where we go from there. It is absently necessary to hold back the red tape so the economy can recover, and that is an election issue. People will ask themselves in november, we just went through the coronavirus, we had to shut down our economy as the president got it back and running again. To have a chance that next year will be better . If they can say yes to that, he has a good chance to get reelected. If they say no, we are still held back, people are not allowed to open their business, we have all this redtape and bureaucracy, then people will be frustrated. Isid at the same time, there some regulation we can agree is good and some that is bad . Let me give you a specific example. During this pandemic, a lot of focus on workplace safety. Is this a place is this a time to be dialing back on osha who protects workers as they go back to work . David m. i think what you need to do there are two types of regulation. Theyre the ones that set out a standard to keep people safe. We need those. Osha needs to be enforcing those. They also have a lot of red tape and things they will go in and find a business for not filling out the log exactly right. If you can give people a break on that and say we will not penalize you if you kept people safe and tried your best to do all of our paperwork, then you can see a better result. You are right. Some regulations that are needed for health and safety should be cap. What we found in the pandemic was some of those that were health and safety were holding us back. The famous one being the regulations against telemedicine across state lines. When everything got shut down, that was the only way doctors could talk to their patients. We had to remove that regulation so people could be treated. David always a treat to have you with us. That is David Mcintosh of the club for growth. Now it is time for first word news. We go to karina mitchell. Karina a victory for President Trump at the Supreme Court. Justice is rejected in industry challenge to the president s 25 tariffs on imported steel products. Some countries have negotiated deals to avoid the tariffs they are still in place for much of the world, including china, the eu, and japan. The global economys fragile recovery is facing a fresh hurtle. Coronavirus cases threaten to keep businesses closed and consumers on edge. According to the world health organization, cases of the deadly virus rose for record in a single day. The biggest flareups took place in the u. S. And brazil. India is seeing a spike in new coronavirus cases. The country now has more than 425,000 cases and 13,000 debts. Infections have been soaring in rural areas where Migrant Workers playing big cities have returned in recent weeks. This week in the u. K. , Prime MinisterBoris Johnson will set out more lockdown using plans to outline which parts of the economy will be allowed to reopen in july. Johnson is also expected to relax social distancing rules. That will be a huge boost to the british leisure industry. 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 karina mitchell. This is bloomberg. David . David coming up, our stock of the hour is apple. App store policies have come under scrutiny at the same time it holds its annual developers conference. That is next. Power onalance of Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. The tensions between Silicon Valley and washington may be heating up again. We have a representative saying he would like to hear from the ceo of apple and other big tex companies about how they are dealing with things like the election. We welcome kailey leinz who will take us through apple, particularly as today they are having their annual developers conference. Kailey that is exactly right. Today should be an exciting day for apple. It kicks off its Worldwide Developers conference. This year it is happening virtually. Some of the big things were looking for our details and updates to ios, as well as the move to using its own processing chips in computers replacing intel. There is a big shadow overhanging the event. That is the amplified scrutiny surrounding the App Store Policy and whether they are favored. The eu opening of former aunt a formal antitrust suit into because ofifically apple charging a 30 cut to purchases made in app. The eu is looking at that and that created a flood of developers criticizing the company over these policies. It is an issue that has captured the attention of u. S. Lawmakers. Our very own emily chang spoke to the democrat from rhode island who chairs the house antitrust committee. He has choice words on the issue. We should be able to take a listen to that right now. This is very concerning that the use of the app store, developers were startup are being forced to pay a ransom of 30 , or they are denied access to that marketplace. Justwent to that late coincidentally google and apple arrived at the same thing, 30 of the profits. That sort of market power is a disturbing thing. If it were done in a competitive market you have a percentage as low as does door 3 . Even the credit card market as low as two or 3 . This is 30 . This is highway robbery. Kailey highway robbery. Conferenceang on the , especially considering apple need support from its developers to make the changes it will talk about this week. The switch from intel chips to its own processors and Mac Computers requires developers change their programs in order to cooperate with that hardware. Apple needs to keep these guys in their good graces. Developers, needs but developers are making a fair amount of change off of apple. It is a symbiotic relationship, isnt it . If your developer and you look at apple which dominates the Global Smartphone market, you have no choice but to deal with the cost of doing business with this company if you want your apps to be seen. Apple does get revenue. They made 51 billion from the app store commissions since they put them into place. That said, it is still not their bread and butter. That comes from hardware. You still need developers cooperating with you on the hardware front. David does the market react to any of washingtons threat against apple . Kailey it depends on the day. Today is not the case. You have tech up. So much tok you kailey leinz for that report on apple and their issues with the app store. Coming up, the virus does get a vote. Well be joined by a doctor from Washington University about how concerned we should be with the spike in virus cases in places like texas and california and florida. That is coming up next on balance of power on Bloomberg Television and radio. David this is balance of power. Im david westin. New york city takes a big step toward opening up today, even as the number of covid19 cases is spiking in places like florida arizona. And to get a read on whether we have our arms around this disease, we welcome michael kinch, an associate chancellor and a professor at Washington University. He is the author of between hope and fear, the history of vaccines and human immunity. Thank you for being with us. Give us a sense of how you read this spike up in cases. The direction seems to be disturbing in florida, in texas, in arizona. Are we in for trouble . Michael we are, unfortunately. It looks like we are still people keep talking about the second wave. We are still riding the first wave. It is now hitting places where before. Ot hit hard the second wave will not come in until fall in the fact that the numbers are nearing their peaks in march and april is not a good sign. David was the shutdown effective or were there other ways we could have gotten similar results through social distancing and masks . Michael i think the evidence shows that the shutdown was very effective. The problem is we have become very impatient. Understandably so. We have been cooped up for months now. I think that urge to get outside, especially as the weather became nicer, has revealed itself in this rivers in the trends. One positive thing is that we are not seeing a rise in deaths. That is a suggestion that the therapeutic attempts to subvert this disease are starting to work. What give us a sense of the right way to prepare, besides getting protective equipment together, what is the right way to prepare for a possible surge here . We have two different approaches. One is a vaccine that will create immunity. Another is treatment, to really protect people from getting more severe versions. The administration apparently is backing vaccines, the exclusion of treatment. What should we be doing . Michael we need to have a balanced portfolio. That a balanced portfolio unfortunately is something that, from my perspective, is completely lacking. We are placing a lot of emphasis upon vaccines, and thats great in the long run. Im a big proponent of vaccines. But there are a couple of risks. One is that this disease might not be vaccineable. It may be that we cannot develop a vaccine. We have to have we have to be prepared for that possibility. The other thing, and i commented about this a few times now, is that we are putting all of our eggs in one basket, in that the type of vaccine that we are mostter is very much of the companies in europe and the United States are attacking what is known as the spike pretty. With the idea of blocking the ability of the virus to infect cells. Other countries, specifically china, are looking at kill vaccines which has a much Better Success rate. I think the real danger we are looking at is our portfolio is not balanced at all. We should have more inactivated vaccines and fewer technology that are going after these rna and dna vaccines. Im afraid we are not, as a society, looking at the portfolio as broadly as we should. David you make a really powerful point that i suspect people will not want to hear. There are some diseases that you cannot get a vaccine for. You worked on hiv. We never did get a vaccine for hiv, did we . Michael we did not. What we ended up having to do is we instead balanced our portfolio and said, lets go after therapeutics that work that are in the existing set of drugs available to us. What is known as a drug repurpose and. That is what we were doing early covid. Then we discarded then we started to develop drugs for covid and would be better than the first generation. That is where we have to have a fully balanced portfolio. Both overall, comparing vaccines with therapeutics, but then also within the vaccines having different approaches that we use. David we have talked about this before. What do you think the likely time horizon before we know whether we can get a vaccine is or not . Michael it is likely that the yes no answer will be available probably at the end of the year, or midway, sometime between december and june. That will be when we know that we can develop a vaccine. Then the question is going to come to scaling that up and being able to deliver it. Again, when we are talking about giving a vaccine out, we have to have the infrastructure available to not just have the vaccine, but have all of the vials and stoppers and all the syringes. I havent really heard as much conversation about that, the logistics, the fundamental logistics of how you both make the vaccine and distribute it. That would probably, i cant imagine being in full effect before early next summer, perhaps a year after that. David im going to take advantage of the fact that we have an historian. I have read in 1957 there was actually an epidemic. We developed a vaccine quick as i understand it. What happened there . Why is that different from this time . Michael that is a little different because that was a variation on the influenza virus vaccine. The 1957 outbreak was an outbreak of influenza, just a pandemic strain. Aboutwe are not talking modifying an existing flu vaccine. We are talking about having to develop a brandnew type of vaccine for a brandnew type of virus. So if you were advising the president of the United States, besides having a balanced portfolio, pursuing treatment and vaccine at the same time, what advice would you be giving about trying to keep down that transmission rate . Critical, yous want to keep it under one. Michael i think what we need to do is we need to think about hyper localized reactions. What i mean by that is you do not have to necessarily shut down the entire nation. But in areas where there are bad outbreaks, where the curve is starting to move upwards again, we need to have the ability to clampdown on that. That is going to extend beyond president ial power, that is going to require governors to be on board, mayors to be on board. We need to not think nationally, but we need to think locally with all of these outbreaks and quashing them one at a time. David ok, thank you so much. Really great to have you with us. That is michael kinch, associate chancellor and professor of biochemistry at Washington University, and he is also the author of the great book between hope and fear, a history of the vaccine and human immunity. Now it is time for bloomberg first word news. Karina thank you. While the race for a vaccine is on a new york city, phase two of the reopening has begun. Office workers can return to their desks after three months of lockdown. Many will still be working from home. Companies are taking it slow while they figure out the safety issues. New yorkers also can eat at restaurants again, but only at outdoor tables. In florida, the coronavirus pandemic is showing no signs of slowing down. The state has more than 100,000 confirmed cases in nearly 3200 deaths. Florida has had nearly 23,000 new cases in just the past seven days, the highest level ever. Recent travel came to an almost complete standstill in april. At 7 Million Euros in april compared with 544 Million Euros in the same month last year. That is a drop of almost 99 . The economy depends heavily on tourism. After an early lockdown imposed in early march kept coronavirus deaths and serious illnesses at low levels, the country is now reopening to visitors from overseas. 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. David thank you so much, karina. Bloomberg invests is going on today, tomorrow and wednesday. We will have the top voices in the finance world. Today, we will hear from Steve Schwarzman and jim chance. We will bring it to you here on Bloomberg Television and radio. This is balance of power. David this is balance of power. Im david westin. On hello gloria, the secretarygeneral, talked to my colleague Francine Lacqua about what a recovery would look like after covid19. One thatn have a third will be stronger than the second, or the Second Quarter will be like the trough. There is going to be some progress. It is going to look like there is recovery and theres going to be some expectations, some enthusiasm, the only question is that it is going to be a longer slog overall. Why . I believe it will be more like a u. The question is how long is the bottom part of the u, why . Because among other things, there is going to be more government debt, more corporate debt, more household debt. We are going to need a longer runway to take off. In order to reduce to the greatest possible extent the costs, the consequences, the economic and financial consequences of the virus itself, of the Health Pandemic and at the same time, because it will allow you to then set the stage for the recovery in the medium and long term. Now, you also mentioned other questions. Competence. Confidence. That is very important. The recovery of confidence will not happen immediately. Then the question of investment. How long will investment take . We already had remember francine, you and i talked several times, we already had a very high cost for the World Economy because of the trade tensions. In we were paying uncertainty and the uncertainty was generating lack of investment and the lack of investment was killing growth. That is before the covid. And then came the covid. That has not moved. In fact, one of the things that was not done is to say ok, lets remove the trade restrictions. Lets remove the trade tensions. The cooperative spirit of saying what can we do together in order to create more confidence, everybody is focused on their own country. Everybody is focused on the trillions and trillions and trillions and billions and hundreds of billions that we are throwing at their own economy, at their own economy, that is fine. But the more mutually reinforcing measures and some confidence Building Measures like the removal of some of the trade restrictions would have been very important. And then, you mentioned some sectors. ,avid that was angel gurria the oecd secretarygeneral speaking to Bloomberg Television. We had a drama over the weekend. The attorney general tried to replace the Southern District of new york, mr. Berman. He did not tell him that he was losing his job. He ran into a bit of difficulty. We welcome greg farrow, Investigative Reporter for bloomberg. It is a little embarrassing, trying to get the head of the sec in. He didnt mention to mr. Berman that he was out of a job. Greg yes. Everybody knows the broadbrush facts of the story that you outlined. Rre weird thing is that ba made an announcement that berman had resigned and that was incorrect. That is not a good look for the attorney general of the United States. The had been battling back and forth with the council of what happened in Lafayette Square if you weeks earlier. The way this was handled, even if theres no suspicion about what is going on and whether there is any coverup, it is a badly handled bungling of a replacement of the u. S. Attorney in the Southern District. David it is interesting, there are some sensitive issues pending before the u. S. Attorney in the Southern District of new york. One might jump to the conclusion that some democrats think, but he is like a golfing buddy to the president. , inhas done a terrific job my view, as the sec chairman. Greg there are a couple things going on. Yes, the Southern District of new york, under berman, who is not only a trump appointee it was never confirmed by the senate, who met with trump as part of the interview process. And that caused a lot of people to be concerned about whether berman would be able to be independent. He certainly has. He recused himself from certain investigations. Particularly one into michael cohen, who was convicted of campaignfinance violations, on behalf of trump. So theres that, there is an investigation that involves a couple piles of rudy giuliani. And number of other things that have been below the surface. But is easy enough for congressman and democrats to glom onto that and assume that there is some kind of a coverup going on. On the other hand, clayton, yes, in an administration which has had lots of turmoil throughout different departments, clayton has been a breath of fresh air. Someone who has been noncontroversial, he is wellregarded, the problem now is with his name in the mix for this, it looks like if you take a negative view of it, that he is being set up to be brought in to oversee an office with the Conspiracy Theory which is that nothing bad will happen to the president. It is almost like he is in that position. Even if it went ahead and his name was submitted to the senate, he would have difficulty getting confirmed this fall during an election season and it already looks tainted. That is an unfortunate byproduct of this. Jay clayton ends up being thrust in this position where someone who might have been a nice promotion or appointment for him, now it is a very different Public Relations meaning, if you know what i mean. David that is a tough job no matter what. Going into these circumstances, really challenging. Thanks so much to greg farrell. United states and russia will be back at the bargaining table this week over arms negotiations. We welcome the former ambassador of russia. Thats next. This is balance of power on Bloomberg Television and radio. Oomberg television and radio. David this is balance of power. Im david westin. Russia and the United States return to the bargaining table in vienna this week to talk about arms control, something they have not talked about any while. To get any perspective, we welcome ambassador Thomas Pickering. He has been ambassador to the united nations, russia, india, israel, among other countries. He holds the rank of career ambassador which is the highest rank in the u. S. Foreign service. Thank you for being with us. Set the table for it. What is on the agenda for this negotiation and what realistically can the United States expect to accomplish in these negotiations . Amb. Pickering thank you, david. Most logically, in the most important event on the agenda, has to be whether in fact the u. S. Will go along with a very deep russian interest in extending for another five years a very important agreement called new start, which sets overall limits on the number of delivery vehicles that each side equationin the nuclear between them. A treaty which is based on a tough negotiation, very favorable inspection arrangements for the United States. Were it to go, we would see the disappearance of the last arrangement coming through and beyond the cold war, to provide inse elements of stability u. S. Russian nuclear relations, clearly very badly needed in large measure as a result of how close we came to misuse of Nuclear Weapons, if i can phrase it that way, back in cuba. Where they sent Nuclear Weapons and delivery weapons to cuba. It was a harrowing and very challenging experience. And one that almost all of us who think very clearly, i hope, about u. S. Russia relations would not like to see repeated. The reason there is an opportunity to renew, mr. Putin says he is ready to do so with no preconditions for another five years. It is an important way for the president to chalk up a win, if he is interested in a win. The real problem of course is that this was in an agreement reached under mr. Obama, and as a result, carries that burden, if i can phrase it that way, with the president who does not seem to be interested in building on anything that is out there that was put in place by somebody like mr. Obama. But really, an unfortunate approach to the question of strategic stability, something that we all ought to be interested in, even in the midst of the covid virus which has sucked most of the ether out of a discussion of other issues. David it is not just a matter of reluctance to build upon, but also to take away from. There is a history here between President Trump and president putin involving intermediate range Nuclear Forces treaty where the u. S. Pulled out of that. It is not a pretty one. Are those two separate or could one spill over into the other . The two areng separate. On the other hand, what we do that it, the inf treaty covers delivery vehicles between 500 and 5000 kilometer range for Nuclear Weapons, was going to be a test case. Could we continue it or not . In that treaty, each side argued the other side was violating it. And most of us who have spent time thinking about it saw that there was a path through those particular questions, including changes in posture in places where violations were either charged or where they could be dispelled by changes in posture on both sides. The new start agreement does not require any of that. It is merely a treaty that is working very well, that provides us a great deal of reassurance about the Russian Nuclear posture, and something in the absence of it, are generals who are in charge our generals who are in charge [indiscernible] david we are having some technical difficulties there. Lets see if we can get ambassador pickering back. This is is this is a digital breakup that we are listening to. We will see if we can get ambassador pickering here. I apologize. We have certain digital challenges working from home here. That was ambassador Thomas Pickering who knows international negotiations. One of the questions beyond the relationship between the United States and russia is also, does china need to be brought in . The treaty was enacted at a time in a different world then we have now where we have china, a resurgent china moving forward. Not just in trade, not just economically, but geopolitically. The South China Sea and elsewhere and has a significant Nuclear Arsenal itself. One of the questions is cam the parties come together in vienna without china having some role at the table . Something that has been suggested in the past is necessary. There is a whole range of issues facing President Trump as we look toward the november elections. Certainly some of them are Foreign Policy, not just with a Nuclear Arms Limitation talks in vienna, but also of course with china, the South China Sea that i mentioned. Korea, a very difficult challenging situation that President Trump thought he was moving forward on. It appears he is not making progress. Kim jongun is getting more and more belligerent toward the United States. We certainly have not approached the direction that President Trump really longsought, which is to have them denuclearize, peninsula. And a lot of Foreign Policy issues as well as domestic issues that President Trump is confronting. We will see the extent to which that affects the election. That doesnt it for the first hour of balance of power. We will continue in the second hour on radio. This is bloomberg. It is 1 00 in new york, 6 00 in london. Im vonnie quinn. Here are the stories we are following. Apple plus development apples conference. The you and u. S. Investigating how the Company Makes money. We will hear from steve anotheran and from person. All of the apple headlines as they cross that conference just beginning. A look at where we are into the trading day. Broadly higher start after starting the morning on a little bit of a down footing. The dow up. 5 . S p up. 6 . The nasdaq up. 9 . Crude