Lots of interesting things going on today, but the number one thing without question is a deteriorating take in the last hour, and what is front and center in the United States is a reaffirmation of the first wave of the pandemic. Other issues on the virus worldwide, including in india, for example. Bombay shifting to really grim news out of delhi, a flareup in tokyo as well. Isthe United States, there no other topic than this pandemic. Jonathan totally agree. Claims 30 minutes away as well. We face elevated long unemployment. What we need is a clean reopening so we can bounce back quickly, and hopefully the temporary job losses dont become permanent. From an economics perspective, that is why the pandemic and the fragile data in states like texas is so worrying. Reopeningins the process. If it reverses it, worst case an area, we face a lot of pain for a lot of people. Tom i am going to suggest you put separately the pandemic and claims. I would like them quite closely together, in that there is an assumption in the markets that claims is on a linear path to a better statistic. Who can make that assumption now with the news of the last three or four days . Jonathan nobody can. I think that was the problem with the data in the first few. Eeks of may going into june you cant extrapolate out the bounce. The bounce is mechanical. It is all waste it is almost guaranteed. You got to work out how quickly we can normalize. Quite clearly, it is going to be really difficult to normalize. One of the things i notice, and i think this is really get strongis you bets on certain things. But what i find fascinating is the varied opinions of the yield curve and Interest Rates will price in this concept of inflation to come, and also yield curve control. There are a lot of different opinions out there, arent there . Lisa people arguing for disinflation or deflation, and then out rate inflation, and there is a timing issue. In the near term, there is a disinflationary trend. People are not getting paid. They are getting laid off. The economy is going to be hurt for a long time. Question is, will the government come out was fiscal stimulus that is big enough to inject some inflation into the economy that really hasnt seen it for. Ver a decade in any real sense tom i want to mention our important interview with lebron james. With james speaking on his Business Affairs and the state of this nation. You will see that across bloomberg today and tomorrow night on bloomberg businessweek. H us now, to bastion page with us now, sebastien page of t. Rowe price. Within all of this turmoil in the record uncertainty, how do you reframe for the second half of 2020 . Had our assetjust Allocation Committee meeting, and we will remain neutral for now between stocks and bonds. You were just talking about the key risks with the reopening, and those are all very immediate risks. The pandemic and the reopening risk. The only thing i would say, it , but thatficant risk risk in texas came out this morning with the number of cases themselves. There is interpretation in the data and nuance, but it is a risk. Uncertaintyly, the on the pace of the economic recovery, this is where sentiment matters. What is priced in with respect to what is going to come out . We were just talking about unemployment and claims data. I listen to your show a lot, and every guest on bloomberg who is pessimistic on bloomberg was pessimistic about six weeks ago. Recently, you have seen expectations on the upside. That kind of gives us pause because we tend to lean against the wind. We are willing to take some cyclical exposures in our portfolios for the second half of the year, and we typically take a six to 18 months horizon. We will have slight overweight to small caps and emerging markets, for example. Jonathan what does leaning against the wind mean in an environment like this . Speaking, generally it is very hard to look at valuations because the fundamentals are very hard to estimate. But lets look at emerging markets, for example. Emerging markets, if you look at forward pes, the data is not perfect, but relative to the u. S. , they have essentially never been that cheap if you look at 15, 20 years of data. We are talking 99 percentile evaluations in terms of emerging markets. That is an example of where you could lean against the wind, but in the current environment, it is not just about valuation. It is also about the macro. The macro could be favorable for emerging markets as well. Expecting weaker dollar, and generally speaking, new Business Cycle models coming out of recessions, emerging markets tend to do well. Sentiment could turn favorable if you take the six to 18 month horizon. That is an example of how we would think about leaning against the wind. Look at how extreme some of the valuations are, and then look at the other factors. We are just getting news that macys is planning layoffs that are roughly 3 of the total workforce. , the layoffson will only continue to mount. From your perspective, our official shutdowns positive for sentiment given the fact that it ,ill shore up some confidence or are they negative given the fact that they can spread fear further . They are it is clear negative, and that the news flow is negative because theres so much uncertainty just about the pace of the reopening. If you just zoom out and take a longer time horizon, this is fundamentally more of a temporary shock than other economic shocks weve had. But day today, i dont think there is expectation that we will go back into full nationwide lockdown, but it will be a bumpy road towards reopening. That is definitely negative for sentiment. But if you are a longerterm investor, going back to the idea of leaning against the wind, it gives you an opportunity to do that when valuations get really stressed. Tom the heritage of t. Rowe price, just one final question, is growth. How do you deal with the mega Growth Stocks right now, the stocks that just go up and up . For us, growth remains a secular winner, but that is the most worrisome value growth decision. Yeartodate, 17 percent. Relative to growth over the last underperformance, value relative to growth. We like the fact that growth are secular winners and investors in Growth Stocks, but if i talk to some of our bottomup portfolio managers, some of the most turning to hedge some of these exposures with more cyclicality, looking at financials and energy stocks, for example. As asset allocators, we are going to be between value and growth. Jonathan sebastien page at t. Rowe price, some very good advice. We talked about this so many times, a moment for humility. There is so much uncertainty out there. Radical uncertainty, i think we could call it. Not only in the equity markets, seeing small caps move, but the whole debate about when to buy value seems to be a critical distinction into the second half of the year. But also, i would look at the yield market. Compressedns spread againnder 48 basis points shows that new tension in the market this morning. Jonathan we discussed at moment reopeningyclical rotation, the steepening coming through in the treasury curve. Those things are really starting to stall in the last week or so. I am struggling with very much so is that if we dont get official shutdowns, you get an ongoing shut down defective by companies. This idea of how long will this drag on u. S. Economic growth in a way that perhaps is very difficult to model, and will continue to create a lot of pain on the jobless front. Jonathan this is why this has been a massive reminder to focus on how difficult normalizing is going to be. We have mentioned improvement in the Economic Data. We had a series of huge upside surprises. Sequential improvement month on month. We can focus on how difficult it will be to normalize in this economy. Corporations will make their and decisions. They will get out in front of this. I totally agree that the corporations will be far more elastic in response to this. I think that is one of Gina Martin Adams core themes that bloomberg intelligence. Jonathan jobless claims around 18 minutes of away in the United States of america. Full coverage here on bloomberg. From new york, this is bloomberg. Worda with the first news, im ritika gupta. A grim milestone for a number of states. California, florida, and texas set records for new coronavirus cases yesterday, and arizona hit a peak in hospitalizations. The new numbers reflect the virus has spread in states that were slow to impose lockdowns or quick to lift them. A new model predicts the death toll will reach 180,000 by october. A new poll shows joe biden leading President Trump in every one of six battleground states. Biden leads by double digits in pennsylvania and michigan, and wisconsin. Pro basketball star bron james has put together his most end dishes deal yet star lebron james is put together his most ambitious deal yet, a Media Company with a 100 million investment. He spoke to businessweek about the company and the restart of the nba season. I am looking forward to the ,eason getting restarted getting back in the laker uniform and continue to push the envelope off the court and on the court. As i have been telling a lot of my colleagues and friends, i will not stop until i see real change for us as a community both on and off the floor, so my mission stays the same. The programs today are by and large sufficient to cover the income gap for about three or four months, starting from april. So we are really talking about an amount of money that gets you through the summer. The problem then is that we are talking about the virus, which has a timeframe of probably 18 to 24 months, so i refer to that as a duration mismatch. Essentially, the timeframe of the virus impact in relation to the timeframe of how long people can last. Jonathan bob prince of bridgewater, the cocio come up joining us yesterday. If an tested lineup of guests and interviews over the last couple of days, and a really interesting conversation with one of the top guys at bridgewater. From new york city this morning, good morning to you all. Alongside tom keene, together with Lisa Abramowicz, im Jonathan Ferro. 12 minutes away from initial jobless claims in america. We are down 22 on the s p 500, down 0. 7 . In the words of Texas Governor greg abbott, we face a massive outbreak across the state of texas. That could constrain the reopening plans for several states across america, weighing on sentiment over the last couple of days. In the bond market, it means lower yields, flatter yield curve. I said this a little bit earlier. As the session grows older, the euro coming in 0. 4 . That is a weaker euro, a stronger dollar. Tom i am glad you mention that. Texas beleaguered. Disneyland will not open in anaheim. The good news is something that may open is the nba, and that would include the los angeles lakers. The is lebron james of lakers on the season to come and the meaning of sports. I believe that sports in general has done so many great things for communities, for households, bringing people together, and more importantly, like you said earlier, our commissioner and our league has allowed us to express things that are going on in our lives, so with what is going on right now, it gives us another opportunity to continue to talk about social injustice, police brutality, black lives matter, and continue to hit home on things going on that matter a lot as well. But sports has always been something that galvanized and brought people together, and just made people feel very uplifted. I know in my community right now, unfortunately, a beautiful 18yearold girl is just gunned week,n akron, ohio last we kept her graduating high school. ,o just to get peoples minds not saying forget about certain situations, but just to have a breath of fresh air, a sense of love that sports can bring. I know when i get on the basketball court, it can bring a lot of happiness to a lot of households, including my community and my kids. I am looking forward to the season getting restarted, getting back in the laker uniform, and continuing to push the envelope not only on the court, but off the court. Like i have been telling let of my colleagues, a lot of my friends, i wont stop until i see real change for us as a community both on and off the court, so my mission stays the same. Tom jason kelly with lebron james. Right now we move up to jobless claims with our chief International Economic correspondent, michael mckee. What is a distinctive item in this weekly data you will look for here in minutes . Have to you basically look at continuing claims. We want to know whether they are or flattening back out. The problem we have now is this wave going through Southern States is going to distort the figures because we dont know that anybody is getting rehired. That is the kind of data we are getting from opentable, that reservations are going down. In that case, how does that show up in the data . It is really going to be hard to read these numbers today. Lisa it has been hard to read a lot of the numbers. I am wondering what insight we are getting on the composition of jobs getting cut at this point from a wage standpoint. Edge hasthe leading been Service Industry jobs, particularly in the restaurants and leisure category. There are a bunch of people now who work at disney world and disneyland who will not be going back to work right away. Do they go back on benefits . Was there any effort by disney to give them something in the meantime . It is really hard to tease that out. We also get durable goods orders today. They will reflect what we saw with the jobs report last month, but does that mean anything if we see parts of the country potentially shutting down, even if the government dont call for it themselves, self shutting down. Jonathan it raises a really important question of how useful aggregate numbers for the Economic Data will actually be in the coming weeks and months. Michael they are not going to be very useful. ,f we saw a big change down that might give wall street some hope, but it is really all about the virus numbers right now. We cant really look at the data we try to look at the that,requency data like but it is hard to get a fix on where we are. Tom what is the state to state variation in the story you find as you look at each claims on thursday . Where are we now on the mix of the 50 states . Michael oddly, that falls into the same category of hard to tell because you get some states like california that see big declines, and then you realize they only report continuing claims every two weeks, so you have to wait and parts that out. Some of the state numbers are if are lagged. We do know at this point that the states experiencing additional cases are going to be seeing their economies slow down. Jonathan stay close. Six minutes away from the print in the United States. 1. 32 million, jobless claims. Still very elevated, numbers you want to see improve and improve quickly. Tom it is really important to put a gradation on these numbers. I think jon said 1. 3 million is the guesstimate. Normally, it would be 200,000, and we would be all upset if it went up to 200 20,000 or 230,000 to 220,000. Now we are at five times that, a brutal statistic. Jonathan it is brutal for the people who make up those numbers. We will continue to talk the glass halffull, the more optimistic, constructive view. Chetan ahya of Morgan Stanley will be joining us. Initial jobless claims just around the corner. Alongside tom keene, together with Lisa Abramowicz, im Jonathan Ferro. Equity futures down 21 points, 0. 7 . This is bloomberg. Jonathan from new york city, this is bloomberg surveillance. For our audience worldwide, we are live on bloomberg tv and bluebird radio. Alongside Lisa Abramowicz and tom keene, im Jonathan Ferro. Jobless claims drop across the terminal. Lets get the numbers. Michael as a lot of people feared, jobless numbers worse than expected. We have had a surge in the Southern States and the virus and we have a surgeon jobless claims. 1,480,000, that is down from last week. 60,000 lower than a revised level last week of 1,508,000. However, we are seeing totinuing claims down 19,522,000. We will have to wait and see if those move up again if the overall jobless claims numbers are moving up again. Continuing claims come in a week later. The one thing we want to keep an ion is the pandemic assist an eye on is the pandemic assistance. The assistance that goes to people not usually yell about not usually eligible. That goes down. Still 728,000. Almost one point 5 million jobless claims as the economy still struggles to get out from other the virus. Durable goods orders were expected to coming up 10. 5 . They are up 15. 8 . We will have to look at the breakdown and see what pushed them up extra. The number everybody watches, capital goods orders without defense orders and aircraft, up 2. 3 . That was down 6. 1 the month before. The good news is it does not matter. At this point that his old data. If people were able to go back to work, there are orders to be filled. The question is when do people get to go back to work . Data in looking at the the spill over the market, we drop lower in the equity market, negative. 9 on the s p 500. In twod market, yields basis points. Not massive moves. We are still struggling to understand the Economic Data and the distortions over what has happened with the paycheck protection program. Can you talk about why it has been so difficult to get a read on the data, especially with the labor market . Michael we do not have good data on the paycheck protection program. We have a rough idea of how many businesses have been affected, but we do not know how to be bill they have hired back we do not know how many people they have hired back. Did people want to go back on payrolls or are they happy with the extra 600 . We do not have a good idea of the search of the labor market back and forth. We get the impression that what we are seeing is still a problem with backlogs of people on unemployment. We do not know with the continuing claims whether or not people are falling off the roles and trying to get back on because there are problems in the computer systems. It is the best data we have, but it is not completely reliable and it does matter if we saw decline below 20 million. There are still 19 Million People getting unemployment insurance. That is going to be a problem for the economy no matter how you slice it. Tom michael mckee, thank you. That complete report always expected and he delivers again. Jonathan ferro, you mentioned the 10 year yield. Even in the two years space with the great fist with the great stability, note how the two year comes in with a lower yield at 0. 18 . What do think about that . Jonathan yields are not going higher anytime soon. We have an elephant sitting on the front end of the curve. The elephant is the federal reserve. The real story is yields cannot go much higher for a long time. Bet is onreat aggregate demand. For is fancy economist talk a wonderful phrase by chetan ahya with Morgan Stanley. I first saw from him. Slow ballization. Trade andwn of world with a staggering unemployment, we see worldwide in this with the we reassess chief economist of Morgan Stanley. Thank you so much for joining us this morning. It was mentioned the slow down yesterday with the imf. You have been way in front of this. How slow is slow going to be . Chetan the most important metric we are looking at is deceit went to the output level outputo see when to the levels get back to precovid levels . We are expecting that to happen by Fourth Quarter of 2020 and to happen by Fourth Quarter of 2021. We think this will be much faster. We are talking about the Global Economy coming back to precovid levels in four quarters versus six quarters during the great financial crisis. It is going to be a sharper recession, but shorter than g fc. Lisa a lot of people questioning the concept of a vshaped recovery where there is so much uncertainty, not only on the medical front, but how the bleed through effects will be as billions of people lose their jobs and stay out of work with the demand shock unlike anything we have seen in recent history. Walk us through how we get to a vshaped recovery. Chetan there are two approaches. I highlighted we are saying things will be better than gfc because of three reasons. This is an exhaustion is shock. We do think deleveraging pressures will be lesser this time, and the policy response has been swifter. It has been strong, coordinated, and aggressive. Those things make a difference and that is what helps the output levels to come back much faster. Additionally, i think what we are seeing is there has been a possibility for various economies to restart and reopen their economies despite us having the virus still with us. It means we cannot go back to precovid levels of output, but it does not mean we stay at the trough levels. That is what we have seen in the last four weeks. Country after country has reopened, and that has lifted the Global Growth aggregate. We think that is what was underestimated by the market and investors, getting around to that one. It is Still Holding back a lot of Investor Community on this front. One thing you mentioned was the employment levels are high. Unemployment levels tend to be high as a trough, but if you go the consumption numbers came back to precrisis levels by Third Quarter of 2010. We came in around eight quarters. Consumption came back much faster in that period. I believe that is because of the physical transfer the government provides. People are underestimating that recovery in consumption. Jonathan given what is happening in places like texas, how do you input that into your forecast . Are seeing a rise in new cases, but we are looking more closely at hospitalizations. There are some aspects of younger people being impacted this time more in places like florida. When you look at hospitalization , it is arizona, florida, georgia, North Carolina and texas. These are the five states which are seeing rising hospitalization. What we are observing is you will see some constraint in Economic Activity in these states. Either they do not continue to accelerate as significantly. The rest of the country does not have that problem of rising hospitalizations, so you should continue to see improvement in Economic Activity in those states, particularly the northeastern states. Their starting point of Economic Activity levels is very small and they cap for about 23 of gdp. A sizable section. That is the one which will see improvement in activity. When you look at the economic picture, look at the aggregate picture. The aggregate picture will show Economic Activity will improve because there is a large part of the country which is fine and will can see continued improvement and activity. Jonathan i have to follow up on that. There is little bit of a delay. The aggregate numbers will improve because we go from shut down to reopen. Those powerful forces will present themselves in the aggregate data. I think the aggregate data will mask the fragility. I wonder how useful aggregate isa will be when all of this mechanical improvements in places like new york. Is it the more useful forward indicator looking at what happens to the economies in the process of reopening in places like texas, california, florida. Chetan there is a nuanced way we read this. The problem with these states was they had taken a very liberal attitude and not followed some of the best practices like Wearing Masks and following social distancing. Low casesey have initially compared to northeastern states, they were aggressive in the way they opened up. If you look at all the other parts of the world, and my sense northeastern states of the u. S. Will follow the european path rather than following the Southern States. You can open without having to go through a research in some cases. I do not think we should use the stage as leading we should use these states as leading indicators that any other states that open will follow the same path. Jonathan always thoughtful. Enjoy your perspective as always. A brighter outlook, more optimistic outlook from Morgan Stanleys chief economist chetan ahya a. That is the constructive view from Morgan Stanley. Tom no question about it. I think there is a lot of people pushing against that. I think the Research Notes of the last 48 hours buttressed around the claims report are extraordinary. Renaissance macro puts out a blistering paragraph saying these claims back to back are not up to snuff. Alpert,es off of dan his wonderful book, the age of oversupply, saying we will see difficult labor statistics into september and october. They are really pushing against dr. Ahyas view. Jonathan dan alpert is looking get distortions coming from the paycheck protection program. It is difficult to reconcile the improvement we have seen with the persistence of the Economic Data that comes from claims. It has been awful and continues to be awful when you look at the claims data. Lisa one. 5 million new jobless is not normal. Nothing about this is normal. More than 40 million jobless claims filed in the past three months. My ultimate question is shut down or not, if you have consumer traffic and Consumer Sentiment not there as a result of spiking virus cases, then we are not going to see the jobs market improve anytime soon in a meaningful way. Jonathan could not agree more. Looking at this market this morning, good morning to you all. Equity futures rolling over a little bit on the s p 500. We are down 20 points. Up by 12 on the nasdaq 100. Up next, the conversations continue. From new york, this is bloomberg. Ritika with the first word news, i am ritika gupta. The coronavirus pandemic is raising through the u. S. Heartland, setting records for hospitalizations and forcing businesses to rethink their plans to reopen. Florida and texas each hit records for new daily cases. A new model predicts the virus will kill 180,000 americans by october. The pentagon has unveiled a list of 20 Chinese Companies it says are owned or controlled by the military. Among them, huawei and hick vision digital technology. Give President Trump any new authority. He already has the ability to impose sanctions against those companies. Lebron james has put together his most ambitious deal yet. He and his this partner maverick cars have launched a Media Company with a 100 million investment. To businessweek about the company and a number of other issues. People in the community. The people in the community, living and walking the streets and being racially profiled and being judged, they are the ones that need to be heard. They are being hurt right now and it is great to see. They being heard right now and it is great to see. We have to make sure we are doing everything and we are diligent and our citizens are diligent. We often have to make sure the virus does not come in on a plane again. A jointnnouncing today travel advisory. People coming in from a state that have a high infection rate must quarantine for 14 days. Jonathan from new york city, that was new York Governor Andrew Cuomo on the situation in the United States of america. How times have changed and they have changed weekly and three months. , i amide tom keene Jonathan Ferro together with Lisa Abramowicz. Three months ago it was all about stopping new yorkers from going into other states and making them quarantine. Three months later it is the opposite story. Tom i think what is so important is i did not hear a lot of spite from governor cuomo. To be blunt, the government officials of the east coast states are so exhausted by the last 14 weeks. I do not think they have the energy to be spiteful. They are just scared stiff of another round of airplane exits that harm the community. Jonathan i would agree. Not spiteful but worried. Looking ahead to the opening bell, we are down. 75 on the s p. We will continue the conversation with Morgan Stanley. I will catch up with mike wilson , the cheap equity strategist. He has been right over the couple of months. The chief equity strategist. I wonder how the last couple of months has tested the optimism of the equity bull over the last couple of days. Tom a lot of distractions with these stories. I am watching the two year yield dipping under 0. 18 , that gets my attention. Right now we digress to one of the great train wrecks of the last couple of years. Im not talking about wirecard in germany. We are all familiar with wework. I made a joke of it. Yet, it is a crushing need within american business. That is office space quickly. Industrious does that. James hodari joins us. He is trying to move forward and pick up the debris of the industry after wework. Wework,of talking about give one best practice that wework did that you can Carry Forward. What is a thing wework got right you can Carry Forward . Gots the thing wework right is company should be buying their employees Workplace Experience as a product from an expert provider instead of doing it themselves. That is what they did over the last 20 years with logistics, with manufacturing, with data storage. If you look at any fortune 500 company, the dominant trend has been pick something you are not an expert at that is a major component of your business but is not your core competency and hand back to ups, hand that amazon, handout to box con. The office is the last domino to fall on that front. They got that more right than anyone realized they were first growing. Is howow the question you package a virus solution to companies trying to plot a return to the office. What are you hearing from Companies Looking to do this in terms of what they are willing to spend at a time when they do not know how many of their employees will ever return to the office . Contextor one second of , we are the largest premium workplace provider in the country. We have more than 100 locations across 50 cities. The specific question, what does a safe return look like, is what we spent the last three months, almost 100 focused on. When you talk to Large Companies and then midsized companies, there is a growing realization that outside of the very Largest Companies in their hq or very largest offices, it will be hard to deliver all of the new protections necessary, which is part of why expert providers are helpful. The more you did in, i think the first month was all about the physical protections. Filtration. Physical distancing. Enhanced sanitization. What i would say is that for most american businesses, there has been almost an aha moment where they said all that matters, but what matters as much is how employees feel. Giving them the choice of whether they want to work from home or want to come into the office. A lot of the focus on businesses is not on the baseline of physical safety requirements, but about how to put in place programs that empower employees to decide whether they are coming to the office at all, or local no commute options. That is where a lot of the conversation is. That is a cheaper conversation to have because you do not have to reoutfit your workplace in a way to prevent further infection. How much are using businesses sit on their hands and not take jigger there composition of the number of people who will come back to the workplace until there is a vaccine . Jamie i think most companies we have worked with are being relatively responsible about this. Comeof the cost lines that out and some of these reports, i do not think there is a lot of scientific basis for. There appears to be a lot of scientific basis for filtration in the ac systems, which is expensive but not ungodly expensive, and most of the Additional Solutions are around behavior, around protective equipment, around distancing. They are more about employee behavior and specific physical interventions that would be outside the means of most companies. Maybe i am being optimistic, but ive not seen a lot of evidence of companies shirking their responsibilities to their employees. One good data point on that a statisticaln program about sentiment around the work place. If you look at what workers are concerned about, the number of workers concerned the behavior of their colleagues put them in danger is much higher than the number of employees concerned their employer will not take the necessary steps to protect them. That is where a lot of the worry is right now. Tom thank you so much for being with us. I would love to get you back on again. I would love to do a mark constructive conversation about how industrious does moving forward. Jamie hodari is with industrious , an important story across the nation. Larry kudlow out with the headline before his monthly conversation with Jonathan Ferro. The National Economic advisory recovery still there. This on foxbusiness right now. Lisa, there is mr. Kudlow being very v. Lisa this expectation we are going to see a resurgence in the economy, not the virus count. I am struggling with this idea that even if there are no official shutdowns, the bulk of what we have seen in terms of Economic Activity waiting has come from a lack of confidence in individuals to spend. How do you get that confidence back . Tom futures 20. I will go right to the yields. I can do that the terminal on my phone. Yields coming in. Stay with us. This is bloomberg. Good morning. Jonathan from new york city for audience worldwide, good morning, good morning. The countdown to the open starts right now. Complacency turning to real concern. We begin with the words of Texas Governor greg abbott. Outbreakis a massive of covid19 across the state of texas. Today we have more than 5000 people test positive, as well as more than 4000 people hospitalized because of it. There are some regions that are running tight on Hospital Capacity that may necessitate a localized strategy to make sure hospital beds will be available. Jonathan that is the policymakers response. Here is the corporate response. Apple saysopen do current covid19 conditions, we are temporarily closing stores. We take this step with an abundance of caution as we closely monitor the situation and we look forward to having yo