Jonathan of course, by all means, go on. Dir. Kudlow you had a sermon jonathan with all respect, that was not a sermon. Dir. Kudlow there are other ways to do with these problems. Throwing money at them is not the only answer. You have to create Economic Growth and incentive. We are willing to spend money. Thats not the point. The president has endorsed another round of direct mail checks. He has endorsed that. He has also endorsed continued unemployment assistance. The question is, what is the overall policy to make sure that it makes sense that there are incentives to go back to work . We have a very fullfledged plan to do exactly that. We want to reward people and the businesses they work for to go back to work. We will extend the tpt. That is part of our package. Im not going to negotiate, but that is in the mix. We have retention credit for new jobs, we have benefits for reemployment. We should give existing workers a tremendous boost to income. Even in five months it will be 1200 a year or more. People not working can go back to work and realize their aftertax wage is higher than the unemployment. That is a good thing. So weve got to be smart. It is not just a question im not going to see the ground of compassion. Know people. Families, cousins, kids, neighbors who have been damaged by this terrible pandemic correction. We know that. And we have been working on this now for five months at work speed. We are even at the point now where six or seven companies, aided by federal money, large phase threeare in of vaccination testing, which is a huge part of the story. As far as getting the kids back to school, in addition to the masking and the distancing and the hygiene and so forth, we are willing. We have in our negotiated position a good deal of money, well over 100 billion, to get kids back to school. But we are not going to allow a transformation of the economy, whereby the government and its planners run everything. Health care, energy, you name it. We are not going to go down that road. We have tried that in the past and it does not work. You have to be smart, you have to focus on the incentive model of growth, and then we will see the successes. We have had plenty of economic comebacks in this country. Throwing money at every problem is not the best course of action. Lets be smart, lets be efficient, lets provide incentives. Again, if we cannot get compromise the way we did last march, then the president will act with his own executive powers. Let me tell you, it is not a bluff. Jonathan final question because i know i will get in trouble with the white house for keeping you too long. What will happen first sanctions on carrie lam . Dir. Kudlow those are completely disconnected. My not going to respond to that. Jonathan can we get that a little bit later . Dir. Kudlow im not here to talk about those. We have already done an executive order with respect to sanctions on hong kong and china, for their many misdeeds. Not always taking away the freedom of hong kong and breaking a 50your deal. But the chinese have to be held accountable on their bad behavior during the pandemic, their bad human rights records, what they are doing militarily in the south china sea, and we are putting outcome as you probably know, we are going to protect american investors with a much tougher approach with respect to the auditing of chinese Public Companies and the Public Accounting board and the sec. A financial working group. We just published the stuff. We are going to give one year to shape up on the audits and on the working papers behind the adits to see if they deserve listing on american exchanges. We have to protect our own investors, protect our national security. Those are tough, gritty issues, and we are making progress. Those are separate issues from these fiscal negotiations. Jonathan larry, i know you are a man with a good heart, and i appreciate time every first friday when we get the jobs report. I hope for the best a little later as well. Larry kudlow. From new york city this morning, good morning. This was the countdown to the open. This is bloomberg tv. Guy im guy johnson with my t in london, taylor riggs with my host, taylor riggs. The real implication, the payroll report, is what is it going to mean for stimulus talking d. C. And then you have to throw in this raise level of tension between china and the united states. Equity markets are just going sideways. They are trying to digest this and figure out what it all means. Taylor what is also moving sideways is the bond market. There is almost no movement on the full faith and credit. A few things that kudlow said that struck that stuck out to me the payroll, tax cuts, between stimulus and those to mill. And state aid come austerity measures that might be coming are not included in this to millis package. We are joined now with more from kevin cirilli, who is our bloomberg chief washington correspondent, to bring us more reaction on what we just heard from larry kudlow, the house economic advisor, who was just speaking with us. What are your some of your what are some of your Key Takeaways, particularly if we are going to get a deal or not. Kevin larry kudlow suggesting that an executive order is very onn the taelor short the table shortterm. Particularly on Student Loans and unappointed benefits. It will go through middecember. The white house is telling democrats if you are not going to budge in terms of the negotiations, we are going to go around you. The second point, he is saying debate of ideological epic proportions. I thought a key line from larry kudlow moments ago was when he said that he is not willing the white house is not willing passion, as it relates to speaker pelosi. He invoked jack kemp. Thell long history inside beltway with conservative economist and thought leaders in terms of how economic incentives would help to grow the economy. The final point that he made, and the third take away, is that essentially they are prepared to go along. They are prepared to roll up their sleeves, to continue pressing on word onward for these negotiations. Larry kudlow really signaling that they are going to be able to do this for the long term. Thank you very much indeed. We are continuing to monitor what happens in d. C. With kevin and the rest of the team giving us great reporting. It is critical that we get some sort of a deal done at this point. Michelle meyer, bank of america securities, economics, joining us now to give us her take. Lets break it down a little bit and start with what we learned in terms of the payroll report. Everybody has their favorite way of breaking down the payroll report. What did you see in these numbers about what is happening in the u. S. Economy . Unless the labor market continues to heal but it is at a moderating piece. The jobs numbers were stronger than this than last month. About 42 of jobs lost have been recovered thus far. In some of the most sensitive sectors to covid like leisure and hospitality, retail trade, one would think at this point a beenf hiring has exhausted and now it does become difficult. Ofbecomes more a function broad spending, and that is why i think there is so much focus on the fiscal stimulus bill right now because that has been a big source of purchasing power for consumers. If that feeds, what does that mean for the ability to continue to bring workers back . Theor does this take pressure off congress on some of those tougher stimulus measures you were just talking about . Michelle i dont think so. Given the jobs numbers today, there are still 12. 9 Million People out of work, so it is still really high numbers, and if you are digging even deeper into the data and you look into the household survey, people who are answering questions could reporting how they are seeing themselves in the labor market, about 63 percent of those unemployed say they are temporarily unemployed, which means they are still attached to their job, still looking to get back on, which means there is potential labor out there looking to work, looking to be employed, and looking for help in the interim. I think there is quite a lot of pressure in terms of getting additional stimulus to the economy because we have not fully healed yet. Covering theer European Crisis 10 years ago, and austerity was one of the issues that really came to the long timeit took us a to recover from that because of the austerity that was put in place. Require balanced budgets. Local finances have to change and switch on a dime if we do not get a stingless bill that will satisfy them. One impact will that have on the u. S. Economy . What does it do to your models . Exactly right. Re there are different prongs. What do you do for Small Businesses . What do you do for the governments that have to balance their budgets and without additional funding, reportedly they will have to cut back. Bigink that is a really difference views between republicans and democrats right now. If you dont have additional funding, the rainy day funds will continue to be drug down drawn down. They will have to cut back and that will be a source of pain for the economy. We are carefully looking at what happens there. It seems like all the headlines are on Unemployment Insurance, but there is this underreported component which is what happens with government finances. Is withmichael mckee us. Mike, this probably your 10,000 jobs report today. What were some of your Key Takeaways . Mike the general feeling in washington is it was a pretty good report. I would say it is a not bad report. We saw job gains, but they were less than half of what we saw in june. The unappointed rate came down largely because the labor force shrank. So it looks at this point like we were sort of in status quo from june to july, and this only measured to the middle of july, so since then the anecdotal reports we have gotten in the highfrequency data, things have gotten worse, that hiring has stalled out we will not know that until september when we get the september jobs figures. Between now and then, if there is no additional aid to people from washington, you are going to have a real problem with the economy. Maybe michelle has a multiplier she could put on that, but all these people losing that 600 and it is not being replaced by anything, that is a significant amount of money keeping the economy afloat. Some of the people who are still working may lose their jobs and there is not this additional spending on the consumer side. Guy michelle, what happens if that money disappears . In some ways it has already disappeared and we will learn the effect of this pretty quickly because for most people that money has already run out. Michelle thats exactly right. We will see the month we will see what happens in the coming days as we monitor these highfrequency indicators. As we turn to monitoring other data sources, looking at mobility and movement in the economy and help people and how people are deploying cash, we will know in time how things are the how things are progressing. It is likely we will see pullback connectivity with the expiration of expanded benefits. Expanded benefits went to a large cohort of individuals who have what is called a high tendency to spend because they are there are more budget constraints. Unappointed insurance tends to filter into the economy quickly, so without that you will not see that additional spending, means it could create some challenges for the retail sector. These industries are so sensitive to incoming demand. Absolutelye carefully monitoring that to see what it means in the coming days and weeks. Taylor im curious what your analysis has shown you about the extra 600 a month in Unemployment Benefits versus 400 versus 200, and the trickledown events that you said, back to the consumer. Michelle you can do the math. You have about 30 Million People who are still on Unemployment Insurance, and moving that 600 is, call it about 10 billion a week on aggregate. So you can kind of pass that forward and say for that income, how much goes into savings, how much goes into spending, how does that multiply broadly through the economy . It is fairly straightforward math when you think about how to cut the different numbers. The complicating factor, and this is where there is a debate in washington, what does it due to to the incentive for people in the labor force or out of the labor force . What is the right replacement for Unemployment Insurance . Currently it is running about 100 or so. Precovid it was running 40 . It seems they are candy setting may be around 70 replacement income. That could be the right level where you create incentive for people to enter the labor force but you provide enough to keep spending ongoing. That is the delicate balance they are trying to work out. We are getting to breaking news. The u. S. Is sanctioning hong kongs carrie lam. This was talked about earlier, clearly following news that we had overnight regarding the president s decision on the chinese tech company, and we are still feeling and understanding the reverberations of that. The u. S. Is sanctioning 11 people under the Hong Kong Related designations. That includes carrie lam, u. S. Treasury sanctions on its website, and clearly this is going to be another factor that comes in, the thinking of everybody trying to work out whether to invest their money right now. At the moment you have only got to look at what is happening with the nasdaq and its incredible run to maybe make a conclusion that at the moment, further global tech investors, silicon valley, looking relatively relaxed. Spent a lot of time in california covering this. What are you hearing from people about what is going on here . It strikes me as incredible that everybody seems so completely hugeabout what could be storm for the technology sector. You hit it taylor you hit it right on the head there. Silicon valley and big tech was continuing to think it was business as usual. When you think about the antitrust things that were underway, defining a lot of the antitrust, interesting that we saw microsoft, the one coming in for tiktok, given that we heard some rumors about apple, but most of the big tech guys under that antitrust have stayed out of that. You saw microsoft with its own antitrust issues 20 years ago as some of the ones coming in. It is a busy jobs day, so always grateful for the time with michelle meyer, bank of america security scum and of course bloombergs michael mckee. Both of them have been so patient with us. Much more next. This is bloomberg. Guy before the break we were talking about the fact that carrie lam, the hong kong executive, is going to be sanctioned by the united states. U. S. Actions also hitting the hong kong commissioner of police. Lets bring in from washington nick to bring you context on this. Give us your perspective. We had the news on tiktok, now we have carrie lam and the latest round of sanctions on hong kong. Can you join the dots and give some context . Nick it feels like a day does not go by now where we dont have 1, 2, sometimes three actions by this administration seeking to stick it to china. We had the houston closure, a litany of sanctions, and the hong kong element. We had action on the south china sea. It is safe to say that this administration seize this moment as an opportunity to push every button it cam it can to put china in a corner. There are things it has not done. It feels like they are doing a lot, but at the same time if they really wanted to hit china hard, they could sanctioned the big chinese banks, severing the trade relationship. It is a combination of a ton of action right now, but at the same time we get the sense they are holding off and not going for the jugular. Taylor what you said that stuck out to me is that the administration sees this as the right time. Is this sticky, or if things change in november, two a lot of things become unwound . Nick i think that question is at the heart of this administrations strategy right now. You are seeing at attempt by the Trump Administration to lock in these punitive measures against china now, under the expectation het joe biden, while he says recognizes a lot of the concerns about china would not take nearly so hard a line, it serves the dual purpose of locking in tough actions. But at the same time, if joe biden seeks to unwind them, the response could be joe biden is weak on china, so it is a perfect storm of elements where you have the president looking to exploit this moment with the election coming up, dropping all his restraints because of the coronavirus and blaming china for that, and then also this real hardline group of advisers at the state department, trade advisor navarro, pushing these policies. Taylor thank you to bloombergs nick wadhams. Focus stocks that are winning on this news, you take a look at the russell 1000, smallcap stocks away from multinational is where youre seeing a lot of strength. Yours you are seeing 10 year yield come up just a little bit. And im looking here for bloomberg Dollar Strength to see if that is continuing on this news as chinese tech continues to sell off much more than the u. S. Tech stocks. Coming up, papa johns delivers growth among the lockdown. We will speak to joe lynch on the earnings and hiring. All of that next. This is bloomberg. Guy im guy johnson. Taylor riggs in new york. Alix steel has the day off. This is bloomberg markets. Lets talk about one of my favorite subjects. Papa johns shares up this morning, the company posting a in americanump sales second quarter. Is this sustainable, particularly if we see the stimulus checks this appearing . , thedent and ceo rob lynch Growth Numbers are strong, you are growing really well, you are doing the best you have been doing in years. You have change a lot of things with the company, and you have the big macro factors working in your favor. Ive got a simple question. Thatuch of the 600 a week people have been getting from the government do you think has been spent on pizza, and if that number were 400, do you think the profitability numbers would be lower . Has been always resilient in terms of economic distress. Some customers trade up, some trade down. Stimulus checks are helping the economy as consumers have not felt the full effect of the economic challenges that we face, and if those go away, we think we will persevere pretty strongly. We think customers that are currently able to afford to spend more on feeding their families at home are doing so, and as those pockets get tighter, we will be there. Value. S a great inherent you can feed a family of four for 15 and we think we will sustain through these changes. Taylor what is the background of this pandemic doing to the unappointed picture . What are you telling employees about layoffs, furloughs, bringing people back, bringing up a rising cases, having to furlough people again . How is your own unemployment situation . Rob we have not had to furlough anybody. We have hired 20,000 people in the last four months. Our sales have been up 28 in the last quarter. 30 in the last month in july. It had huge demand for services and we have needed people. We are able to help out our communities right now, where we had the highest unemployment we have seen in a number of years. We are able to ease that burden a little bit. We came out last week and announced we are hiring for 10,000 more jobs. We have been helping to the communities. To take it a step further, have increased the Health Care Benefits for all employees. We have offered telemedicine, telehealth all our employees and their families, and we have increased our College Education benefits for them, too. So we are trying to give back to the communities that we serve helping out with employment. Guy where are those people coming from, rob . Are they coming elsewhere from the hospitality sector or from outside the hospitality sector . What kind of people are you employing . You talk about the big numbers. Im curious. Rob we are they are coming from everywhere. We have teachers, people coming from restaurant and foodservice background. The pandemic has had people in a lot of unique and different ways, and our jobs are flexible. You can make a pretty good wage delivering pizza, believe it or not. We have attracted a lot of people. We are operating fully staffed in the restaurants for a first for the first time in a long time, as we used to do with record levels of record low unemployment. It was hard to staff our restaurants. Today we have been able to offer a lot of jobs. Transactions are up 15 in the second quarter, 15 more business coming through the door, coming into our restaurants, and we have needed those people to handle all that. Taylor talk to me about the changes that you have made, the Delivery Business contact list that contactless livery and some changesther related with gloves and masks. Willys changes be structural, or when we go get a vaccine, will these things go back to normal . Every thing that we make in our restaurants goes through our 450 degree oven, so food safety has always been a great component of our business model. Our rigorous we have taken our rigorous standards up a level, making sure that all of our drivers and everyone who comes into the restaurant is washing their hands every sickle time when they come in or go out. We have given all of our drivers sanitizing solutions in all of their cars. So we have gone above and beyond to make sure we are taking care not just of our customers but of our employees. I think that is good practice. There is incremental cost, but it is not so significant that we cannot handle it stop if we can take care of our employees with these concerns, i think there will be a tail on consumer and employee concerns moving forward, given the challenges we face that we are now facing on a sustained business. On a sustained basis. We are taking every precautionary measure to take care of our employees and customers. Guy what is happening in the rest of the world, europe has a much better handle on the virus. Restaurants have been able to open in a completely different way. Youre seeing a similar picture in parts of asia as well. I am focused on europe. What is the difference in terms of the demands that you are seeing out of europe and out of the united states, the trajectories they are on, the different patterns in terms of consumption . Rob we operate in 47 countries outside the united states, and every country is very unique. Markets where we have been able to operate at full capacity and stay open, like the u. K. And south korea, we have seen huge demand. In markets where we have seen them locked down or go into curfew situations, like peru and parts of the middle east, obvious are biz obviously our business has been impacted. As the Different Countries have experienced Different Levels of the virus and have seen a wave like motion for the virus, it has not been a linear line. We have seen Different Countries open back up and close back down. You are seeing right now a lot of debates in the u. K. As they have opened back up. There is concern about what is going on there like we have here in the states. China and parts of asia are starting to come out of the deep problems they have had, and we have seen pickup in China Business as restaurants are open. At this point we have our lowest level of closed restaurants across the globe since the onset of the virus. We start off about 200 restaurants in china closing down. At this point globally, we have about 160 restaurants closed. There is confidence that we are getting to a point where we know how to handle what is going on, despite some of the increases in cases in some of these geographies, and things are opening back up. Taylor i admit when i watch football, i. E. Pizza. I think one guy in london watches cricket or soccer, he probably eats pizza when he watches those sports, too. And yet life sports are increasingly going away. Are you worried that that could be a key demographic that you might not be able to tap if we start to see sports not come back the way we thought they were . Rob sports has always been a part of the pizza business. At the onset of the pandemic in march, they canceled march madness. We are very concerned about that. That is a big event for us. The reason why pizza is such a big deal around sports is because pizza is a unique type of food that is almost always eaten in a group setting. Our Company Purpose is bringing people together through better pizza. That is both an aspirationals thing aspirational thing, but it is also a very functional thing because it brings people together. With the risk of the sport leagues opening back up, there are a couple different scenarios. One, they open back up and they dont have any spectators as they are operating right now. That is the best Case Scenario for the pizza business, because the folks going to the arenas and the stadiums will now be watching those games at home and they will be ordering pizza. We see a big opportunity there. If they do open back up and people are going out to the games, we will be there to deliver pizza to them, too. With perseverance through march madness, football season is a huge deal for us. I think we will do just fine as people continue to stay home and spend time together. Guy one final question. Once we start getting a handle on this, once we get a vaccine, do you think people go to your stores less often . Do you think they order pizza take out less often . Assuming the pent up demand to go out and eat in the venue, in is yournts, what expectation for what happens when a vaccine finally arrives and what that will mean for your numbers . Rob in the last three months we have added 3 million new customers. What we have seen through our data and a lot of them are coming in through our loyalty program, so we have purchase behavior, and what we have seen is that these new customers are sticking. They are repeating. They are not coming in one and done, and they are coming back at a higher frequency. Some of that will be driven by the situation that they are in, but our job through this pandemic, is to first and foremost make sure we are taking care of our employers employees and customers. Second, to make sure that the customers we are gaining through these challenges, that we are helping our communities persevere through, well stick around for a long time. 3 million customers is a big number for our company, and if we can retain those customers by delivering Better Service and food, they will stick around a long time after the pandemic receipts. Taylor rob lynch, papa johns president and ceo. You watch soccer, not cricket. Jobs sees a, betterthanexpected rebound in the u. S. Stepping ceo of a of a staffing and recruiting company, tom gimbel. That is next. This is bloomberg. Ritika lets check in on bloomberg first word news. The Trump Administration is posing sanctions on chinese carrie lam. Ncluding the sanctions are being carried out under an executive order. President trump signed it last month, seeking to punish china for its moves against defending hong kong. President trumps the internet giant lost 35 billion in market value. Trumps order on wechat came on tiktok. Ar moves tiktok says it is shocked by the executive order, and it is vowing to challenge it. Bill,coronavirus relief negotiations are edging toward collapse. Spoke with larry kudlow earlier, who says the two sides remain far apart. The talks are rather stalemated right now. There was a better tone earlier this week. Through last evening, they have not been any breakthroughs. That is unfortunate. Ritika the main Sticking Point is the topline number. Democrats won 3. 5 trillion of aid, republicans want 1 trillion. Rescue teams are continuing the grim task of uncovering bodies hit lebanonssion capital tuesday. More than 5000 were wounded. It was caused by the ignition of more than 2700 tons of imodium night that was improperly stored. The Ammonium Nitrate that was improperly stored. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more im ritikauntries, gupta. This is number. Guy . Taylor . Taylor back to the jobs report. The u. S. Labor market continues to regain ground. Employers hired almost 1. 8 million workers in july, beating estimates. The jobless rate also down to 10. 2 percent. Joining us is tom gimbel, Lasalle Networks ceo. Less all network is a staffing, recruiting, and culture from. Headline numbers look better than expected. Seeing in terms of trends on the sector basis . Time, so nowmmer it is safe to quote a quote eat outside in the northeast and eatidwest and to outside in the northeast and the midwest. It is better then not having them, but we are not having job creation, we are having job adjustments what happened in march and april. So times are good, but we are nowhere near where we need to be going into the winter time and what is going to happen if there is not a vaccine. Lets talk about those that are permanently unemployed. Clearly they will be seeking new unemployment. Are the people who are on that manently unemployment list do they have Transferable Skills to enter sectors that are less affected by covid19 . Service workers from hotels and all Hospitality Industries and Service Really do not have the whitecollar jobs. We have not seen the huge influx of whitecollar unemployment yet. What will be interesting is the september, october, and november jobs report when the Airlines Start to lay people off assuming travel does not come back. And the hotels that get to lay people off. I think there are a lot more ripples from the coronavirus that are going to happen. I dont think there is transferable skill, and i talked to probably between 50 and 100 , each week. There is hesitancy now more than ever, so Companies Want to wait and see what happens. Then you toss on top of that the election and what happens with what is perceived as an antibusiness in biden or the craziness of the current administration. There is a lot of uncertainty. I dont see jobs bouncing back. We are seeing restaurant correction based on the craziness there was in april. Taylor you mentioned the skills gap. Our companies coming to you looking for a certain set of skills and you are unable to find them, or are they willing to hire and then train their own employees to get the skills that they want . Tom that is the challenge. We have two sides of our business, tempering staff temporary staffing and search. Want to people who certain set of skills and they will pay for that and they find people at other and other companies that have skills. On the temporary side, and let me correct something there are Transferable Skills. What we are seeing now is a huge influx in call centers, in customer service. Meaning people are home more often, whether it is through streaming services, through the credit cards, payment processing, mortgages, what have you, that there are more consumers calling in or online asking for help on how to do things. We have seen those come in, but when you have an influx of unemployment that we had, up to you 16 , 20 unreported, will have competition for those jobs. Its not like you sending your application and you are hired tomorrow. That is not the market we are in. Jonathan with the states that are shut down, the states that are open, with restrictions on travel, can you give us the geographical context about what is happening . You referenced what could happen in the fall, but for some states, the big hit comes with people inside because it is so hot and they need ac . About 600eople talk a week, do people want to go back into the economy and work, or do people want to take money because they are making more from the government than they were when they were working, people are ready to go out and go into an office. It is an interesting position. I live in chicago and used to travel to new york all the time for business. Atm dropping my daughter off Auburn University in alabama, and they are in a different situation geographically. It is a little more casual in the south. But im down here and everybodys wearing masks. They told me you could be fined if you are not wearing a mask inside. In chicago, violence is acting up a little bit in a major metropolitan area, and there is social unrest. If this confluence in the unemployment number with this confluence in the unappointment number, i do not see that getting good in the future. With the sports analogy with the pizza conversation before i came on, we are in the regular season. It is important but not as relevant. When we get the october, november jobs report, that is the playoffs. We will go into a winner that into the winter, and that could be a really long winter. Taylor we are in a moment of reckoning in the u. S. And around the world, where there is a push the bottomty, on levels as well as the Corporate Board and csuite. Whatcompanies come to you, type of diversity are you asking for, are they asking for, and what are you providing to candidates . Tom the good news is i have been doing this for 20 by peers 25 years. Beliefcomplete faith and that Companies Want to have that diversity. Where the real challenge is, so many inner cities and tend tostricken areas be black and brown based. Getting those folks into colleges so we can get entrylevel funnels of people that are of one nordion is really the challenge. We have seen women increase, and i wish i could tell you why we do not see more women in the ceo role or on the boards of directors. I think that is more of a sociological problem, to have a different guest on for that. Companies want to find that push. We have talked to our clients about what you said, and that is you have to bring people in in their early to mid 20s and groomed them so they stay, and then you are going to have middle level, senior level executive management. But a lot of people do not want to wait that long, because it is year play. 5 guy we could talk about this a lot more. We really appreciate your time. Tom gimbel, less sound networks ceo. Salle networks this is bloomberg. Taylor guy, so much of what we have been talking about is about the trade war ramping up, and Central Banks keeping low weights low rates, and what that means for yield protection. They are all going to gold, apparently, in robinhood accounts. That is what we are buying. Get the etf flows for the last week. The gold etf has pulled in 1. 6 billion in just the last week. The s p 500. Youre talking about credit, which is on a massive rally so far this year. If we talk about gold, so much of this hedges against lower rates, a weaker dollar. Rising Inflation Expectations eventually if we ever get one with the massive amount of death deficits it is running, and we were talking about how triple fees came out of that distress level and had compressed relative to triggers below the 1000 basis point level. Basis in here about 997 points, you really see people going into credit to get that extra yield. Yes, a buy everything rally in credit right now. People are seeing that yield pickup. A lot of tourism in that market it will be interesting to see ultimately the gulf story is fascinating, too. We will see if we get a period of digestion after the huge rally that we see. We were talking something that you know well, tech. Money has stabilized after going into the tech etfs, the chinese etfs have had a rally. Againnder whether or not that is going to be sustainable or whether some of that money flows out. You see things with 10 set etc. , overnight. Joining us will be the chief economist joining taylor and i next. This is bloomberg. Experience the ultimate sports hub. Where you can find games, news and highlights. All in one place, right on your tv. The xfinity sports zone. Use your voice to search every stat and score. Follow the teams you love. And, even get notifications with breaking news alerts and more. With the xfinity sports zone everybody wins. Now thats simple, easy, awesome. Say xfinity sports zone into your voice remote today. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Taylor live from new york, alix steel is uptodate. We are coming down to the european close on bloomberg markets. Friday. S equities are fairly mixed right now. We will talk more about that in just a moment. In terms of what else is going on, there is a focus on whats happening with china. Carrie lam is going to be sanctioned in hong kong. S p is flat right now. There seeing a big move for dollar. Its trading down as you can see. Its a similar story against most major currencies, including the pound. , youlso see a bond market see some a pretty solid data on the industrial front out of germany and france. That points to a vshaped recovery