Are back down. Yuan a little stronger. Lets get a deeper dive into the Market Action of the day with kailey leinz. Kailey we are in the green by 1 on the major averages. For is the fourth up day the s p this week. Up 4. 6 over the course of the week, the best week for the index in a month. That is in the face of escalating virus cases climbing across the u. S. Those headlines not putting a day per on appetite. One reason why is that the Economic Data is starting to look better. We saw that reflected in a jobs report. 4. 8 million jobs added in june. The u. S. Is far outpacing europe and the rest of the world, although those economic surprises are trending in the upper direction as well. The question becomes do that resurgence is in cases pose a risk . I want to point out a few stocks on the move today related to cars. Is higher by ebits 17 today, after getting an upgrade. Sales have been much more resilient than forecast. About better used car sales lifting a number of auto body shops and dealers. You saw a number of them on the screen. Vonnie some very strange moves all week. Thank you. Four point 8 million jobs recouped by the u. S. Economy, according to the june jobs report, although optimism remains tempered by high lighthouse and the coronavirus surging across the country. Jonathan ferro asked larry kudlow what is next. Everything is on the table, many things are on the table, it is just a question of doing it smart. I thought the original rescue package was smart. I dont know if everything has to apply all over again, we will see. We assess the economy. That is the key point. Vonnie joining us now is the former acting labor secretary under president obama, seth harris. What does this report tell you most . Good the report is a report but it is really a picture of where we were three weeks ago in the United States when the survey data was collected, not where we are now. This data predates the huge serve in infections and theitalizations, predates reclosing of california, arizona, texas, florida, and other jurisdictions. Predates a number of states in the northeast saying that if you visit from one of those high infection jurisdictions, you will be quarantined. The economy has slowed significantly. That was partly reflected in the very high layoff numbers, the initial on employment claim numbers, 1. 40 2 million. That is five times the number that they had in february. I think the report is a good report, nice to see that we have recovered a third of the jobs that we lost in april and may, but i dont think its a predictor for the future. I think the future will be more grim. Vonnie when you consider between the central bank and fiscal authorities, the hit to gdp was shoved back to the economy to reverse some of the medical effects from the coronavirus, at least in the economy, but that will not be enough because we are winding down several of those efforts. Is winding, ppp down, the extra 600 in unemployment going away at the end of the month. Are right. A sizable part of the reason why the economy did not get worse, me downmployment ca in april and may was because of massive fiscal spending in congress and a huge infusion of money into the economy by the Federal Reserve bank. Now we are beginning to see the risk that these expenditures will expire, and especially Congressional Republicans and President Trump will not be interested in renewing that. Amounts ofrow small money at the problem but not enough. That was a problem we made coming out of the great recession. 900 billion stimulus package, that was out all, saved capitalism in the United States, but we didnt spend more to get the economy growing at a rapid clip. Here, the risk is even more grave. Additional do spending, the economy could dip into a recession. Vonnie we saw several groups were much more hit in the june data. Is there anything that can be done to target specific groups in the immediate term . Larry kudlow was talking about reemployment benefits. What do you think the fourth phase looks like . Seth theres a difference between what it will look like, and the idea of what it should like. The reason that people are not working has nothing to do with the economic incentives. One, they dont have a job. They are deeply fearful of going out into the economy because they dont want to get sick and die. Fear is the leading Economic Indicator in the united dates right now. But there is a lot that we could African American and lend as workers in the economy. We see it in the economy. Unemployment among africanamericans is one half higher than among white workers. Lat is tragic. It is also the story of the American Economy, has been for a long time. We need to invest in the jobs that help latinx workers climb into the middle class, the public sector, we need to fight discrimination in the labor market and workplace. We need to ensure guaranteed economic equity, and we also need to address the housing challenge that keeps good jobs away from africanamerican workers. Vonnie we heard from joe biden early on, have not heard from him in a long time, but he is the person who should be taking on the president at this time, given we are a few months away from the election. You served in the obamabiden white house. What is his plan to reverse this job loss . Seth i think what he will do is proposing massive jobs strategy. He has already proposed significant Climate Change and infrastructure strategies to create jobs but also to help the economy move to a green future. That will create a number of jobs. His strategy is to put more money in workers pockets, more skills training but also raising minimum wage, expanding over time protections, increasing the number of unions in the United States. If we put money in the pockets of middleclass, lowwage workers, that will drive the American Economy, along with an aggressive jobs strategy. That is where Vice President biden will be. That contrasts with President Trump, who frankly, talks a tremendous amount about jobs but does little to create them. We have had more infrastructure trump then president we have had infrastructure jobs created. Vonnie we will hear about any sort of concrete infrastructure plan from candidate biden. Thank you, seth harris. Lets get a check on the first word news with Mark Crumpton. The President Trump says economy is roaring back from the pandemic. Speaking at a News Conference today, he said junes better than report shows a strong rebound. He predicted a resurgence just before the election. Comments came as spiking coronavirus cases are causing some states too slow or reverse plans to reopen their economies. The senate has approved legislation that would approve sanctions on chinese officials cracking down on dissent in hong kong. The bill heads to President Trump. The house and senate moves quickly to enact the legislation after the Chinese Government imposed a new National Security law in the territory that critics say is aimed at squashing protests against the government and could lead to in some cases life imprisonment. The kremlin is praising the vote twoxtend Vladimir Putins decadelong rule as a triumphant vote of confidence. Putin thanked his voters and said russia needs stability. Saypendent vote monitors there was widespread manipulation and pressure on voters. The vote allows mr. Putin to stay in office until 2036. Socialite going was arrested by the fbi on charges she helped procure underage sex partners for jeffrey epstein. Maxwell, who was a frequent travel companion, facilitated his crimes by helping him recruit, groom, and ultimately abuse girls as young 14. It also said she participated in the sexual abuse. Epstein killed himself in federal detention last summer while awaiting trial on trafficking charges. Maxwell was arrested in new hampshire, where the fbi said it had been keeping tabs on her. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn. Been crucial have in supporting the Global Economy during the pandemic. Says another outcome is that Capital Markets are no longer free. Lets have a listen. Today, the economy and the markets are driven by the and thebanks coordination would central governments. The i mean by that is purchases right now of Financial Assets by the Federal Reserve, or the purchases by the Federal Reserve of government securities , are the drivers of that market. ,o the production of the money if you look at who is in the market so the Federal Reserve, for example, will set an Interest Rate that will, for different types of creditors, based on different objectives. In the old days with the financial crisis, we needed to protect banks because they were moneyically important, market, commercial paper and the like. Now it is much broader than that. The whole economy is systemically important. If they didnt make lending to companies, including what we call fallen angels, those that were just above Investment Grade and fell into Investment Grade, we would lose large parts of our economy. So were in a situation now where they are the market makers. Take a market out, take the central bankers out, and you have a different story. Including what is the value of money . Think about it in europe. To central bank will lend banks at a 1 . So that means you dont have interest payments. Banks will take that debt on. They have a political agenda, not an economic agenda, in which they will determine whether they will be paid back, or when they will be paid back, based on what the economy is doing. In that case, in europe, similarly in the u. S. And japan and very degrees, they will make loans with interest credits zero, and lets say you may not have to pay principal back. It depends on the conditions at the time. Those are markets which are driven by Central Banks, not only their actions, but their desire to be an owner of those assets, and their priorities about that ownership, when they buy and sell, is not the same as the classic free market allocations. As a result, the Capital Markets are not free markets allocating resources in the traditional ways. One of the questions investors are wrestling with is how far Central Banks are willing to go in their effort to reflate Financial Assets to begin with, and hope transmits something to the real economy that would result in growth and jobs. How far our Central Banks willing to go with this power they had discovered they have . Are willing tos go, and need to go, as far as it takes in order to keep the system afloat. Because we are in the late stages where we have a lot of debt, you are going to see sheets banks balance explode because they have to. Vonnie that was Erik Schatzker speaking earlier with ray dalio. Still ahead, we will speak with the founder of operation hope on the widening on employment gap and racial inequality in the United States. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn. I think the most important thing we can do today is continued to encourage the to physically distance masks. R a lot of research is coming out showing that that is working. We all want to move toward reopening, but looking at the growing case count, the cases across the u. S. , its critical to maintain those basic Public Health interventions. It is july 1, back to School Shopping begins in 42 days. Are we going to go back to school . Tot does the pandemic due the classroom of elementary schools, middle schools, those diseaseridden seniors and juniors in high school . Goeveryone wants kids to back to school, parents the most. We have to take a cautious approach to opening. We have more research to do on how kids are affected, transmit the virus. There are a few things that are important in the planning. Understanding how you can keep kids safe in the classroom, get them back safely, and also how you can get the families of the kids and the teachers families safe. You have to figure out ways that you can keep them as safe as possible. That may mean increased testing of kids going back to school, better access to testing more broadly for their families, for in thes, administrators school, everyone involved in the process. What do you think will be the incess when somebody chemistry class in the 10th grade gets the virus, or their father gets the virus, how are we going to do that . It will be hard. Access to testing remains critical to all of these reopening strategies. Thatls are not immune to because it seems like its get less sick or transmit less. There is still a risk. If you have someone at a school symptomatic orbe has asymptomatic family member, you backtrack. You do the things that we know work. Them,fy the kid, i smite pull them out of school, do contact tracing, Symptom Monitoring on the people that came into contact with that person. It is hard work but the only option we have right now, those basic Public Health interventions. Encourage or even force people to wear a mask . Wearing a mask is politically divisive right now and it is challenging, something that we have been doing a lot of work on. Intervention, it is safe, we see data that it works. In the early part of the outbreak, there was a lot of mixed messaging because we didnt have enough masks for health care workers, whether people could use them. We did not educate the public on how to wear them. A lot of people, myself included, were skeptical on their utility. We have seen a lot of data come out showing that it is affected in not only keeping us safe but also a keeping you safe. If we all wear masks, we can get through this a lot more safely with a lot fewer infections and deaths. The Bloomberg School of Public Health is supported by michael, founder of bloomberg lp. It is time for the latest business flash. Aviationoment enthusiasts have long dreaded. Boeing is pulling the plug on its 747 jumbo jet. For runs a half century run the twin engine pioneer. Of 178,000 workers have been exiting spains Furlough Program every week to return to their jobs, a sign that the economic recovery is slowly gathering pace in spain. They are expected to suffer one of europes deepest recessions this year. A london judge had decided with venezuelas opposition leader. Juan guaidoled that should be recognized as the countrys president which means that he gets the gold bullion stored in that country. That is your latest business flash. Lets get a quick check on the markets. We have been rallying all day but we are still up 1 on the s p 500. Above 40 on crude. Diane swonk of Grant Thornton is coming up next. This is bloomberg. 49. 50 i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Xfinity. The future of awesome. Because now you can expewatch all your favorite hulu shows and movies on xfinity. Youre only a voice command away from Award Winning shows like the handmaids tale, to new hits like little fires everywhere. And fx originals you can only watch on hulu. Thats just the beginning of what you can experience with hulu on xfinity. Tv made simple, easy, awesome. Mark im Mark Crumpton with bloomberg first word news. Americas top Infectious Disease expert says America Needs more than one vaccine to tackle the coronavirus. Dr. Anthony fauci tells the bbc having multiple vaccines will be necessary not just to meet the demand but to account for the potential of setbacks or failures. Dozens of companies and academic groups are working to develop a safe and effective vaccine. India is seeing a spike in its coronavirus cases. Country reported more than 19,000 new cases in the past 24 hours, bringing the total to more than 600,000. 17,000 people have died. Many industries and businesses have reopened since the country eased its all down last month. Schools, colleges, and movie theaters remain closed. Talks between the u. K. And European Union over their future relationship broke up today a day earlier than planned. The sides say they are still far apart. Talks will resume in london next week. The signs resume facetoface meetings this week for the first time in three months in an effort to work out a trade deal in britains on a split with the block at the end of the year. A victory for President Trump at the supreme court. Justice is all but guarantee that House Democrats will not get access to confidential materials from Robert Muellers pressure investigation. The court agreed to hear a Trump Administration appeal, likely extending the legal fight into next year. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Amanda live from toronto, im amanda lang. Vonnie we are joined by our bloomberg and bnn bloomberg audiences. Here are the top stories we are following from around the world. More reaction to the june jobs report and weekly jobless claims with diane swonk, Grant Thorntons chief economist. Speak with stew leonard, jr. , the ceo of stew leonards, about their stores reopening, food shortages, and lots more. We are seeing stocks extending the recent gains, some decent Economic Data in the form of the jobs number. That is allowing investors to continue to be enthusiastic. Pretty broad in terms of what is moving higher. All but real estate in the s p 500 is moving higher. Energy leading the way, interestingly, along with materials and industrials not far behind. Some into zs and about the pace of economic recovery, despite the fact that we get negative news on the covid front. Disastrous numbers in florida. Great concern voiced about whether the economy that have already moved to reopen will have to move backward. Diane swonk is the chief economist with Grant Thornton. We have to take the data in two parts. How we are doing so far, that healthy job creation number, against what they happen next. Teado you read those leaves . Hole. Is a pretty deep it is great to see large job gains but this data only went through midjune, when cases of covid were actually at a trough. The surge in cases, we already know from highfrequency data, much of the hiring occurred in late may in anticipation of memorial day. Jobson lost already those as states had to reverse course on things like bars, restaurants, gyms opening, but also the fact that people were afraid and started to pull back as covid faces climb. Traffic atto see malls, stores in general, job postings as well reversing course in the latter part of june, which could set the stage for flat to negative in july. This data really underscores how rapid things change in the covid economy, in a world where the pace of infections is rising again, exceeding previous peaks. , managing the virus is what determines the pace of the recovery. Unfortunately, we have not done a good job containing the virus. Thingsalready triggered that are not as good as this report subjects. Vonnie larry kudlow says that there will be appetite in q4. Thealked about helping restaurant industry, tourism, entertainment industries, also reemployment benefits and bonuses. Do you see Something Like that coming to pass in congress . Diane i Hope Congress moves forward. They have done several programs. They have lost count in washington. I think it is really important that we get more. We also need transfers to the state. Incentives for java reemployment. We are still well in the hole, double the losses of the great recession. I am more in favor of unappointed benefits. They dont have to be of the level they were at but still should be significant. We know that if we fall off that cliff at the end of july and do not expand and extend the benefits that we have offered in some way or another, we could 75 of workers receiving those benefits in their incomes. That is huge when people are already struggling to pay rent. Foodlining up to get because they dont have enough money. This is truly a tragedy. In terms of how we move forward from here, is it possible to see a bigger differentiation from state to state . The federal government could say maybe new york and new jersey dont need the support but maybe texas and oklahoma do. Or is that a nonstarter politically . Diane automatic stabilizers, if you put them in, would change the equation at a state level. You can have them kick in with Different Levels of unemployment per state. We are talking such high levels, i cannot see anyone escaping the need for these benefits. Even as new york and new jersey and connecticut are doing better, have health cases down so far, they are also putting quarantines on people coming in. Whether that can be enforced is another issue, but that will put a damper on tourism in the area, even for those areas doing better. It is important to keep this in context. Although you could see regional differentiation come a you will not see anyone recovering back to a place of being whole anytime soon. That is the Message Congress needs to take into account. There is no state left untouched by covid19. There is not going to be any state left untouched for some time to come. To pretend that is not the case is just putting your head in the sand. Atnie continuing claims 19. 3 million. What is the problem with continuing to give people cash, unemployment benefits, given that for many of them, there are no jobs to go back to . Is providing enormous support to the economy, has been very important to provide those. Some of the claims data is really messed up, i have to admit. I know bloomberg looked into it as well. But it is important to understand continuing claims are still at high levels. If you dont continue to provide those benefits, you will fall off a cliff and youll have no support as the economy is trying to ramp up, and maybe hitting another pothole as we deal with these covid cases. It is really important to keep in mind, we dont want to fall off that cliff. Vonnie thank you so much, diane swonk, Grant Thorntons chief economist. For bloomberg best saturday an annual broadcast of the boston pops spectacular. 8 00 eastern on Bloomberg Television and bloomberg. Com. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn. Alongside amanda lang in toronto. The overall Unemployment Rate in the u. S. Was 11. 1 in june, but black unemployment specifically is at 15. 4 . Mens unemployment at 16 point or percent. Joining us now is john hope bryant, ceo of operation hope. There are several statistics that we could go into, including youth underemployment, which is tragically a third of those black unemployment is at 15. 4 . What can you do to narrow the disparity between the general unemployment level and black unemployment . John you need massive increases in internships, something called the new marshall plan, which your viewers can search under my e, where ive prescribed revitalization of our American Economy in addition to 2 gdp. The latter is broken basically. You have all of this stimulus, these on a planet numbers look impressive but it is really stimulus driven. 4 trillionpumping into the investor economy, those that watch bloomberg job connected. U in going to be a soft his recovery hitting in the fourth quarter. Hourly workers, high school educated, no relationship capital. That is disconnected. We need to reconnect the wiring. That is massive internships, apprenticeships, massive focus on k through College Associate education. We cannot have happened the Country High School educated. There are more poor whites in his country than anybody else, by the way. Economies,gging the giving us from our best selves. Basically to answer your question, we need massive Small Business creation among black and brown communities in which creates jobs. 70 of our jobs have 100 employees. 90 of small black businesses ppp. Mall employers who got amanda it is easy to feel weptical, even though want to be optimistic. A will to make a difference in terms of minorities and advancement. Can you capitalize on this moment . You have already got your marshall plan. How do you make sure that folks really Pay Attention to it . John we are in a moment of history right now. 1960s, the Civil Rights Movement was led by the private sector. Cola demanding that the Small Business community in atlanta on her dr. Honor dr. King. Townse way to the small where the Business Leaders took down the whites only signs. The mayor saying this is hurting our reputation around the world. We need to knock it off in terms politics, race baiting, this divide and conquer. Look at what bank of america did. Look at what paypal is doing, walmart. Encouraged by the legitimate desire to correct this with a 10year plan. New marshallur plan, you have a lot of ideas, including an earned income tax credit for those making 60,000 or less. Plenty to chew on on the milk and website. More than half of the senate has signed on to a bill that would make juneteenth a holiday, a third of the house. Those numbers are interesting. Juneteenth, this was the response that we saw from many corporations, consumer facing brands embrace the idea of a holiday on june 15. Great. But what our corporate American Companies doing concretely to protect their black employees, make sure that if they lose their jobs, if their job happens to be furloughed in this pandemic, that they come back somehow . Moment, they are just trying to get a plan. Said white mine America Needs to catch up on 40 years of american history. We are ill in a catchup mode. The main street ceos are like, this is a problem . But they are still trying to catch up. I see a lot of reasons to be hopeful. The solutions are not here yet, and it they can do now will give the ceo of surveymonkey credit here, he said user balance sheet, your budget. You have a budget. Who is your advertising agent . Who is doing your sanitation, janitorial work, is that a minority vendor hiring minority people . Where are you hiring from . Are you truly making sure that is coming from a broad crosssection of people . Sheet usence your budget in a capitalist environment. That is the most powerful thing that you can do right now. Does that help solve the problem of the disconnect we are seeing . One of the issues we have had since the credit crisis is those with capital do better. Those that have less wages suffer. We have seen this disconnect. Stop markets are rebounding even though the economy has not. How do we make sure that we do not run through the same cycle again . John we have to talk to our motherinlaw. This is Like Fighting with your mother in law and never really making it right. Imagine when you need her, she leaves you because she is resentful. Slight a 400 yearold with your motherinlaw. This is what happened with africanamericans. As others gotrder more. Highly educated blacks today, a net worth that is a percent of their white counterparts. You cannot change 400 years in four months. You can create a 10year plan to address it. The first thing is to acknowledge it, then talk about it. What i am encouraged about, my wife ceos are saying i am feeling that this is not a blaming session about black america. They are saying, i can see it for the first time. It is not the country i want to live in. , or my children to grow up in. Fixing it raises all boats. One of the things in that new marshall plan, all boats rise, gdp increases. Great to have your thoughts on this, john hope bryant, the chair and ceo of operation hope. It is a big holiday week in the u. S. , the fourth of july means lots of Specialty Food buying. Stewll be checking in with leonards ceo, stew leonard, jr. Amanda im amanda lang in toronto. Big holiday week on both sides of the border. For the fourth of july, that means loading up on Specialty Food items. Often a big time of year for supermarket chains. We are joined by stew leonard, jr. , ceo of stew leonards. Thanks for joining us. We are in strange times, so what are you expecting this fourth . Stew we are up around the new jersey, new york area, metro area, and they are cracking down more on restaurants opening, starting to slow that down, as governor murphy mentioned, delaying two weeks. Delaying indoor dining. We are expecting a big fourth of july right now. Our guns are blazing right now. Bigcally, if there is a grill out there, i would recommend everyone make sure that their propane tanks are full. Holiday for hot dogs, hamburgers, we are looking at people buying groceries when they are not buying other things, but the price of meat has been fluctuating. What does this mean for you . John it has fluctuated. Some packing plant in the midwest, tyson even closed. Now, i just spoke to one of our ranchers in montana, and he has tens of thousands of cattle. Meatys things are fine, prices are dropping, lower than memorial day, and people can look for some good prices on the meat shallots this weekend. You do have higher costs as you are still coping with safety measures. How does outlook for you down the road, as you look at the weeks and months ahead . John you are right, the costs wipes, hand, sanitizers, we are giving our team members masks, appreciation pay of two dollars an hour we have given our team members. It has increased our cost, our margin is down, but our volume is up, which makes up for it. We have to adjust. Vonnie do you anticipate all of your Employee Base will come back, customers will come back . We have just been hiring since covid started. Unemployment employment. We have been open, paying our taxes, helping the economy. People on theour front lines right now for what they are doing. Right now, most retailers can say that their business is good, unless you are selling wine to onpremise restaurants in new york. We expect things to stay pretty level. The question is where is it going to settle . Vonnie we have to check in in a few weeks because we also want to know. Looking at your weekly flyer right now for this weeks specials, which looks delicious, includes the new york strip and porterhouse. Stew leonard, jr. , thank you. , this0 p. M. In new york is Bloomberg Markets the close. I am caroline hyde. Taylor i am taylor riggs. Jobs focused on the data. We got focused on the numbers in two june reports with diverging snapshots of the economy. The resurgent cases have tempered plans. And on betterthanexpected june payrolls, the s p is extending the rally but briefly paring gains as infections in florida grow by the most on record. Going public, the more unicorns that are heading to market. We had from two ceos on a companys ipo today. All of that and more, coming up. Between ae tugofwar relatively positive jobs report that we got today, as well