New york faang index. Of 4. 8 , surging. Amazon is above 3000 for the first time ever. Last week on the better Economic Data continuing into this week. David it is good news and i will take good news, but we are all worried about what you just talked about. Last time the shanghai went up this far this fast, it did not end well. Are we worried about amazon being that far over the 200 Day Moving Average . Abigail terrific point. The last time the shanghai putting a move of this degree, it went longer and further than anybody expected but ended in a 50 crash. Whether or not that happened in the shanghai composite or when it is probably the bigger question. When it gets this frothy, it is difficult to tell. Relative to amazon the stock is the march lows. Unbelievably overextended. This is nerveracking from the standpoint while you have the ultimate stayathome stock doing so well while the recovery sector of energy and financials are in bear markets, it creates the tension. It tells you that at some point, stocks are likely to come back to some sort of technical reality, talking about the 200 Day Moving Average. When . Who knows. Much further and longer than you can ever expect. David very wise. Thank you to Abigail Doolittle for that report on the markets. We have had some tension. It is a tugofwar between a virus that will not go away and on the other hand a stubborn upward moving equity market. To figure out which is winning, we now welcome the head of u. S. Public policy evercore isi. Sarah, what is going on . There does seem to be something of a disconnect between what the markets are telling us and what the economy is telling us. Good the economy had a report last week on the jobs encouraginghat was and good news for the trump administration, at the same time, you are right. We are zika virus raging all over the country in all sorts of new hotspots and we are starting to see some businesses pulling likeand closing back down florida, like texas. Well have to wait and see. The reality is we lost a ton of jobs in the spring. Jobs, thereese good a lot of things close down and people looking for work. At some point i think the market may want to consider some of those factors going forward. David one of the great things about Evercore Isis you look at some any different data points. Very frequent data points, uptodate. What are you looking at right now to get a sense of whether the jobs numbers were right or whether it was a timing issue because it excluded the second half of june. Sarah that is a great question. We have seen the sectors that have the jobs come back, and that some of these were temporary unemployment numbers. People who did believe they were furloughed and were seeing some on some othere parts of the economy. It is a mixed story. We are watching closely when Congress Returns from the july 4 recess, what they do around the next stimulus. We think there are some clips that are popping up like the extra Unemployment Insurance that falls off at the end of july. Real tensions in state and local and a lot of layoffs in the Public Sector that are coming. Looking closely to see if Congress Steps in, as we still think they will and provide another form of relief in august. We think that is critical for the economy and consumers at this point d. In charge of u. S. Public policy. You mentioned the month of july. Theres also a pesky election in november. To what extent is this economy depended on further fiscal stimulus, no matter how nervous is the economy about the about what might happen in november . Arah we are starting to hear lot of investors talk about the implications of a democratic sweep and consider the kinds of things on health care and energy that a Democrat Administration might consider. I would say it is not necessarily causing the anxiety as you might expect. Thee are some who believe some of theth top Health Measures in combating the virus might be effective. It is not a clean story. Certainly investors are starting to look and starting to price in particular factors. The other thing is for the president , the best case he has with voters where we are still seeing a slight advantage to the president , is on the economy. The other thing we are watching is can the jobs numbers keep up and will voters start to transition from the virus and some of the other news we have seen the summer like race there andand focus will President Trump be able to use that to close some of the gaps in the election right now . We think the numbers will tighten to some degree, but obviously there is a long way to go. , theres been a lot of volatility in the marketplace and the economic numbers. They were way down, they have come back. What about the longerterm . Looking at the u. S. Economy, what are the prospects for longerterm damage or potential upside . Sarah i think there are going to be lasting implications in this economy. I think we are going to see unemployment at numbers that may not they sound better right now than what we are up against. When you think about this financial crisis and the great , i think we are going to have real implications. , think for Higher Education urgently in the state budget, for health care in terms of whether or not some of the back, so ian build think there is a lot. At some point with eight washington has to reconcile at some point we think washington has to reconcile with some of the debts. We are not there right now. It is about filling some of the holes in the economy and taking permanent strips like infrastructure to make it more resilient. A lot of money has been spent in we think whoever the next president is has a lot of economic in their future. David thanks. That is Sarah Bianchi of evercore isi. Leader oflk to the one of the most influential hotspot centers in the country, that is the Cleveland Clinic. That is coming up next on balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Time for first word news. For that we go to Karina Mitchell. Pandemiche coronavirus is preventing some hiv patients from getting the medicines they need. The who says more than 70 countries are in danger of having drug shortages to treat hiv because of the pandemic. Already have critically low stock. Says Prime Minister joining a white house meeting to celebrate a new regional trade agreement between the nation. President trump and the mexican president are due to meet wednesday. Judo has been conducting Cabinet Meeting on lines instead of in person because of the coronavirus. Pack,u prays the new saying it will help north america emerge stronger from the pandemic. Tosident trump is preparing issue executive orders on a wide range of topics. Mark meadows told foxnews the orders will cover china, manufacturing, and prescription prices. He says it is important for the president to provide incentives 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 thanks so much. Just as we thought we were doing better, covid19 cases are on the rise across much of the country. There is a question whether we open things up too far, too fast. We welcome the ceo and president of the Cleveland Clinic. Thank you for being with us. Let me ask you in the bluntness terms, is it the viruses fault or our fault . Did we gather too quickly without the proper social distancing or is the virus mutating and becoming more contagious . Thank you for having me. The pandemic is still around us and there are a few facts we have to be aware of. The virus is here and the the secondre to stay fact is we do not have a cure, the third is we do not have a vaccine and the fourth is we have to learn how to live with the virus. There are ways. We can minimize the spread. Is masking physical distance, good cough etiquette, and good hand hygiene. David as you looked around on july 4, as far as you could tell , are people obeying the rules or is the government not having the rules tight enough, or people disregarding them . First and foremost, we have responsibility to educate our fellow citizens about what is appropriate in this time of pandemic. Emphasize social distancing and physical distancing. Wearing a mask, avoiding large gatherings, in particular enclosed spaces is important to keep each and everyone one of us space. A real challenge with the pandemic like this, in order for us individually to be safe and people are going to be conscious. Conscious. Cautious. In different parts of the country, and different societal strata, and age groups. What we are seeing today is the result of a relaxation of not fullons and compliance to all of us is reasonable and responsible behavior. Time in latewas a march and early april were a number of us were concerned about overburdening the hospitals, particularly in new york and new jersey. As you look at it now, how is the Cleveland Clinic doing, how are you keeping up with what cases you have, and as we look across the country, how are we situated terms of hospital care . Dr. Milhaljevic we have come along long way since march. We have learned a lot about the virus and a lot about how we as providers need to get organized. The clinic is doing well. We are seeing a mild increase in patients hospitalized. In ohio, the numbers somewhat higher the numbers somewhat higher in florida. This is not a matter of concern right now. Andave equipment enough enough capacity to serve each and every person who needs our service. Cleveland clinic is an organization to serve people and make sure they get healthy and stay healthy. How has this affected the Cleveland Clinic business . Dr. Milhaljevic there are two phases of this pandemic that have had different effects on our business. The first does go to three months, we did the first two to three months we did decrease the number of services we could do. It created capacity for what we anticipated was supposed to be a , a largelux of covid number of covid patients. In ohio that did not happen. As a consequence we had a lot of and suffered significant financial losses. We are seeing the safety of the hospital environment is getting better. For the economy to reserve much better care bill be first for several months. Of our regular precovid activity. David what about testing in Contact Tracing . Early doing enough in this country . It has ramped up a lot. There are things like Group Tracing or Community Testing that might be done. Are there things we should be doing on the testing and tracing front we are not . Doinglhaljevic we are much more testing than we did a few months ago. That has been a tremendous success. Of this is hospitals have picked up responsibilities for testing and Cleveland Clinic as well. We have increased our ability to test several fold. Into ways toooking test populations. I do believe our ability to test larger populations is increasing very rapidly. I do believe we will be meeting the demand. David that demand may go up in the fall because a lot of us are concerned about schools. Public schools, lower schools, or Higher Education. Do you see a path to going back to school in some form in a safeway, particular as people are concerned there will be a flu season that will exacerbate the problem . The upcomingic flu season, all the measures we are taking into account. Thatery much hoping what we used to see historically. This is the good news. Obviously in the schools in the schools and the opening of universities, we are faced with a new challenge. We believe there is a way to keep the students as well as the requiresafe that will the same measures we spoke of ,efore, more social distancing Wearing Masks and classrooms, simply to memorize the risk of closure. That ourno doubt youngest students coming back to school is really important. Not only from an educational perspective but from a perspective of their social development. Finally, lets talk about one of the aspects that could be the most tragic. That is the greatly disproportionate effect of this disease on minority communities, the black communities, the hispanic communities in the native american communities. Are there things we can do to address that particular problem . Some of those communities have a tougher time with social distancing. They have jobs that require them are there things that Health Care System can do to disproportionally help those people who need it most . Dr. Milhaljevic we can do a lot and we should do a lot. Our entire communities have to be kept safe , in particular those who are most vulnerable. Our minority population across most Health Care Systems are opening up the Testing Capacity as well as homes and neighborhoods that are most affected. The Cleveland Clinic is no exception. We are firmly dedicated to the of those who are most vulnerable. David thank you so very much for being with us. Truly helpful. Mihaljevic,tom president and ceo of the Cleveland Clinic. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television. Two for the price of one. Dominion sells most of its natural gas to Berkshire Hathaway. Scarlet fu is here to explain. Start with Berkshire Hathaway. It has become more of an energy company. Buffettcomes down to is is seen as the ultimate value investor. His ability to sniff out undervalued deals. Buffett was pretty much as inaction, especially in march. He was a visible victim because of his investments. This week, Berkshire Hathaway pulling the trigger, pouncing on this outoffavor area of the market. Buying dominion energies natural gas pipeline right is that Company Looks to shift away from natural gas. It is worth almost 10 billion, fournly sheltered about billion in cash and it is assuming 7 billion in debt. It moves the needle on berkshires exposure. In the 2019 annual report, Warren Buffett called energy the lead dog to berkshires noninsurance business. Inh punch above their weight terms of berkshires bottom line. Energy makes up 8 of revenue at Berkshire Hathaway, but 14 of the bottom line. That gives you a sense of how much power it packs. To the rest of the market, the signals the Energy Sector is undervalued. It is confirmation. This is largest deal this year to buy energy and Berkshire Hathaway is striking when the Natural Gas Market is at or near its lows. Last month was on Natural Gas Prices make a 25 year low. It is still premuch bumping along the bottom. David Warren Buffett does not like to buy he likes to buy cheap. He must have decided it is at a low point. Thank you so much for that report on Dominion Energy and Berkshire Hathaway. Meanwhile, here we will talk with eugene scalia, the secretary of labor, for his views on the state of u. S. Jobs market after those surprisingly strong numbers coming out before the Holiday Weekend. This is balance of power on Bloomberg Television and bloomberg radio. David this is balance of power on Bloomberg Television and radio. Im david westin. For first word news with Karina Mitchell. We start with covid19 numbers. Florida sees record numbers of the virus. Rose 3. 2 percent today, down slightly from the day before. Florida has had more than 60,000 cases in the past week, the highest since the pandemic began. In miami, officials are planning to close businesses that had already reopened to help stem the spread. President trump is suggesting that nascars only black driver should apologize, calling the incident a hoax. The president asked whether Bubba Wallace had apologized after the investigation found the rope had been installed months earlier. Wallace has not been accused of any involvement. The Supreme Court has ruled that states can ask their electors to back their states choice in the Electoral College. The issue stems from losses found by Hillary Clinton electors in Washington State and colorado who refuse to vote for her despite her popular vote win in both states. Im Karina Mitchell with bloomberg first word news. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. David job numbers out just before the Holiday Weekend show unemployment for black and hispanic americans were going down again after a rise the month before, but at the same time, those numbers are still above what we see for White Americans, perpetuating inequality that has been going on for a generation. After world war ii, the United States embarked on a path of a number ofity, as americans lost a share of their wealth or a generation. But the nation took an abrupt turn and how the nation gets its earnings. Levels. Has the highest of wealth inequality amongst all g7 nations. The average salary for the bottom 99 of American Families roughly doubled from 1945 to 1973, while income for the top 1 grew by just a third. But between 1973 and 2007, the bottom 99 saw Income Growth just over 15 , while the top 1 more than tripled. Race plays a large role in economic inequality. If you Research Center found in 2016 a net worth of a typical White American family was 10 times that of a typical black family. The recent economic downturn will likely make things only worse. During the last recession, the median net worth of black families to climb more than that of white families, while white and Asian Americans out her in black and hispanic americans in every rung on the economic ladder. Trends and increasing income inequality are not likely to stop anytime soon. The Congressional Budget Office projects incomes for the wealthiest americans will grow significantly faster than for the poor and middle class through at least 2021, boosting the 1 s she wanted growth to 281 over the past 40 years. We welcome now the u. S. Secretary of labor eugene scalia. Thank you for joining us. You have a powerful position, you cannot control everything, you dont to tax policy, appropriations, but within your jurisdiction, are there things you can do to turn around the growing economic inequality in this country . Eugene good to be with you. Hadally, President Trump done important things to change some of the developments you are describing in his first three terms in office. As you know, we had record low unemployment in february, right before the virus struck. It was at 3. 5 . We created 7 million jobs since the president came in. The projection would be 1. 9 million, but we created 7 million. One of the things the president was proudest about was how particularly good that economy was for groups who historically had difficulties in the work lace. Africanamerican, hispanic, Asian American unemployment. Then on wages, a really good story there. We reversed the trend that we saw during president obamas administration, where the top 10 of income earners saw their wages growing more. We had wage growth across the board. Wage earners in the bottom 10 actually had faster wage growth than those in the top 10 . There was a piece in the wall street journal on month ago, the theline was that it was best job market for africanamericans in history, before the virus struck. The president s policies of tax usmca,rade deals, eliminating regulatory burdens, had actually gone a long way toward helping all americans economically but particularly those who had difficulties in the job market in the past. Was certainly true, but it started in the later days of the Obama Administration and continued into the trump administration. You were doing well with some of the less fortunate segments of the population, but that is then and this is now. Covid19 and economic shutdown minority communities harder than White Americans. What will it take to turn on back around . There is a last hired, first fired phenomenon happening. Report we the jobs put out on thursday, we have seen real progress. We have now created 7. 5 million jobs in the last couple of months, which is so much better than people were projecting. We saw people coming back across a broad variety of industries sweep. O demographic there was concern in may that africanamerican unemployment did not come down, but it did. A number that struck me was the Labor Participation rate, measuring how many africanamericans are out there looking for work. That number went up significantly, more than any other demographic. That Shows Confidence in the job market and a willingness to jump back in. Other things have been at play. The Paycheck Protection Program has been really important for americans employed by small businesses, many of them minorities, obviously. The president has continued to replenish that program. Then we have this substantial unemployment benefit in the cares act, which the president signed, 600 a week. That has been important for americans out of work. Longerterm, what i would say is most important, is what worked before. The president s policies that incentivized business growth, that is what will bring jobs back, when will lead to rising wages. Usmca went into effect last week. Nafta was i should out last week. That will be good for american jobs. No question everyone was happy to see those numbers when they came out on thursday. But we still have a long way to go. We have millions and millions of americans that still do not have a job. At the same time eugene we still have progress to make. David but the numbers you are looking at stock mid june. How confident are you in those numbers given the timing . I have also seen reports that in the surveys you are not getting the same level of response. Are you confident in the numbers . Eugene we are confident in the numbers. We are getting the Response Rate we need in our surveys to stand by the numbers we are putting out. Ask is a question i occasionally, and i am satisfied in that regard. We are seeing rising cases in some locations, in some states. That has to be taken seriously. I see that as a warning for americans across the country that the virus is still out there. We still need to practice social distancing. When that is possible, we need to wear masks. That is being reinforced. Cdc, department of health and human services, federal government are responding quickly, bringing their expertise to bear, to control those outbreaks. I think we can continue to safely we open as long as we are careful, as long as we bear in mind the lesson that we observed in california, arizona, and elsewhere. 900,000 fewertill people employed in health care right now that in february. Those are jobs that ought to come back. Employment in the government sector, much lower than in february. I think those jobs will come back in the weeks ahead. David you talked about ppp, the supplemental Unemployment Insurance. Obviously a big issue right now in washington, another round of fiscal stimulus. Have we made any progress . Do we have any sense of what is appropriate, necessary . Ony 31 is the deadline Unemployment Insurance. Benefitsnemployment and the cares act ends at the end of the month. I want to reinforce the usmca. That will stimulate the economy, job growth. Tax relief will stimulate job growth. That is something that will be talked about toward the end of the month. The president has already emphasized how he wants to take a closer look at eliminating regulatory burdens to free up our economy more. In terms of unemployment benefits, it is clear the 600 a week benefit was a really good thing to do when the economy was down. Shut but i think it looks different in an opening economy, particularly one that is doing so much better than people were expecting in march. We are ahead of where we thought we would be. The 600 benefit, i think it is right that it expires at the end of the month. David thank you for being here. Eugene scalia, secretary for the department of labor. Coming up next, we will be talking with mark kimmitt about bounties oned american soldiers. That is coming up next on balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Press reports last week about possible bounties that russia may have put on the heads of u. S. Servicemen in afghanistan raised a storm in washington, including whether the reports were even accurate. That is something that we asked Stanley Mcchrystal about. Have much of a difference is there between russia providing aid and weapons and bounties . I think its a difference without a distinction. It is not a good thing, particularly if we are going to have good relations with russia, theoretically. At the same time, it is the kind of thing that has been done toric before a long time historically for a long time. Mark we welcome now kimmitt, who served as the assistant secretary in the state department. You heard what Stan Mcchrystal said. Big of a deal, if the russians posted a bounty on u. S. Shoulders soldiers . Mark we know the russians have been arming and equipping the taliban or years, but as he said, whether it is bounties, or arms, it really doesnt make a difference. The russians are actively supporting the taliban. Is not also said, it helpful if we want to have any kind of relationship with the russians. Now that it is out in the open, that perhaps this happened, doesnt make it more imperative for the u. S. To react to that . Wendaries are inflammatory, have to agree on that. Mark i wrote about this recently. When you use the word bounties, you have the image of a guy during a body off of his horse, asking for money from the sheriff. We need to get beyond that evocative terminology and understand what the russians are trying to do. Frankly, no different than what we were doing with the russians from 1979 to 1989. David the larger point that you are pointing to, forget what you call it, clearly, the russians at this point are not our friends. Im not sure if they are rivals. How do we formulate an effective policy to deal with his country, given its stand with respect to us . In fact, russians are making the policy and we have been responding, whether in afghanistan, syria. Look at what we are seeing inside libya. Very aggressive policy on the part of Vladimir Putin and his regime. Our best policy is to try and check him at every location, the way that we did with the soviet union. We cannot let this aggression go unchecked. David how much of that is kinetic . We put economic sanctions on. On. Im not sure those have been effective. What levers do we have at this point . Mark we have all sorts of leverage such as diplomatic informational, sanctions are having an effect, as they are in iran. Notan use diplomacy to push simply the u. S. But all of its allies. Our allies are far more infected infected by russian incursions and influence. We should work as an to pushtion, nation back on russia and what Vladimir Putin is trying to do. Its also important to understand that russia, at its. Ore, is a week country it has a declining birthrate, constantly declining age of its citizens, the economy is weak, primarily dependent on petroleum. While it is a threat, we need to tnderstand it is not the sovie threat of the cold war but an aggressive nation with a leader who knows how to play his cards well. Think aboutdo you the reports i have seen, declaring the gru, the Russian Military a terrorist organization. Is that constructive . Probably, especially the unit that was responsible. , the modernday version of the kgb, has been responsible for not just these kinds of working onave been targeted assassinations around the world. We ought to take action against that organization. I had some rather radical suggestions. As a practical matter, you have dealt with these issues for many years. R. O. E. Inadvertently are we inadvertently encouraging getting putin by not more involved . Mark this notion that we have not been involved is a bit of a stretch. We have not been as strong as we should. Bedidly, the president may more soft than he is with other leaders, but im often reminded of an airplane running out of gas. That is Vladimir Putin and the soviet union. Sooner or later, it will fall out of the sky. He cannot sustain this level of activity, whether it is military , intelligence activity, he just cannot maintain this over time. But we should be working hard to accelerate the demise of the putin regime so we can get back to normalized relationships with a postputin russia. David twoputted pointedly, does pulling our troops out of germany to sanction russia because of a pipeline, is that a way to put pressure on Vladimir Putin . Mark i think there were other reasons that we did that pulling out troops out, but lets also be candid, 10,000 is a drop in the bucket. 0,000 troops in europe in the 1980s, and even then it was clear it was not enough to stop an invasion from the soviet union. There is a lot of symbolism in terms of us repositioning those soldiers to poland, but as a practical effect, it doesnt have any practical military value at all. David thank you for being with us, mark kimmitt. He will stay with us for the second hour of balance of power, talking about u. S. Relations with the world in a time of donald trump. In the meantime, the Supreme Court is winding up its term. We will speak to greg stohr about the decisions they have brought down today. This is balance of power on Bloomberg Television and radio. Ision and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Aboutpreme court is just to end its term this week and came out with two Big Decisions today which could affect the elections. We turn to our reporter greg stohr. Lets talk about faithless electors. It sounds so juicy. This is part of our complicated president ial election system here in the u. S. Wen we go to the polls, think it one candidate wins the states popular vote, automatically that candidate gets the states votes in the Electoral College. It turns out, there was question about whether the people who actually cast those votes in the Electoral College have the ability to vote as they please. Today, the Supreme Court said they do not, and the state could penalize or even remove them if they try to cast their vote for someone other than the person who won the statewide vote. David the Supreme Court didnt have much question. The other thing is about robo calls. They can still ban robo calls to our cell phones. Greg the court broadened the ban. There was an exception for calls to the collect debt owed government. They say that would favor government speech over other speech, including political speech. The court said we are going to get rid of that exception, so we still have this federal ban on robo calls to mobile phones. It now applies when someone is trying to collect a Government Debt as well. David and goodness knows it applies to election calls because otherwise we would be inundated. Greg the room that was challenging this was a group of initical consultants Washington State and oregon, they were looking for the ability to make more phone calls. Get a vote, but im in favor not to be harassed. Thank you so much to greg stohr. Coming up in the second hour on radio, we are talking to the former secretary of labor under president obama. This is balance of power on Bloomberg Television and radio. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Vonnie it is 1 00 p. M. In new york, 6 00 p. M. In london, and 1 00 a. M. In hong kong. Im vonnie quinn. Welcome to bloomberg markets. Here are the top stories we are following from around the world. Manhattan home sales plunged 54 in q2, the most on record. We mostly to Jonathan Miller on the latest data. U. K. And eu negotiators meet in london this week as the two sides continued to sketch out a future relationship. We get the view from tony gardner, former u. S. Ambassador to the european union. Global coronavirus cases reach 11. 5 million. In the u. S. , we see more reopenings and rolling back. The latest from crystal watson from Johns Hopkins school of public health. We are seeing markets higher. The nasdaq is the leader today. The s p is up 1. 5 , following china overnight. The vix