Last roughly 12 years or so. Relative to today, stocks are sharply higher. We have crude oil, another risk asset recovering at 21 a barrel. There are some folks thinking that the demand picture is improving, sending the Energy Sector to the top of the list, and that is also helping small cap up 3 from outperformance. A lot of the Energy Companies are on the smaller topside. Itfor the bonds and the fed, has been about the news of more issuance from the treasury. We have the yield curve again steepening, i think four out of the last five days, rising by about 11 bits this week. The is healthy, that is yield curve normalizing, something that the fed wants to see. If it continues to steepen, it will put volatility to the markets to the downside or the notways chop way, that is happening today. Keep an eye on the yield curve. We have the long end selling off in the two year call carving out a record low. David extraordinary, thank you. 20. 5 million jobs were eliminated in the United States last month, but really that was only the beginning. Swonkat we bring in diane. One of the things below the top line what are the things below that topline number that you are looking at . I am sorry, we are getting some other conversation. Numbershat are the below the 20. 5, the other numbers that you are looking at . 20. 5, it really is the the bureau of labor statistics made an attempt to capture the losses related to covid19 by reestimating their burst worth and death rates. Came to am is that it virtual standstill in april, so these numbers are understating the actual estimates on what was lost in the month of april because you could not capture all of those Small Business losses that were out there. That is important. The other issue is the 14. 7 unemployment. Once again, many workers said that they were absent who were likely underemployed. When you add those back, that brings us back up to 20 in the Labor Force Participation rate at its lowest level since 1973, simply stunning as everything from parents having to stay home with children and pull themselves out of the labor market because they do not have daycare, to the fact that you are not looking for a job in an economy that is shuttered. The Economic Statistics were meant for a traditional recession and we allowed people to get Unemployment Insurance because they when they were not looking for a job, meaning that less people were counted as unemployed. We saw the surgeon people having acceptingain almost parttime instead of fulltime work. This is not people getting their our cutback, but fulltime workers being scaled back to parttime. I know many workers and Many Companies that put employees in for 1 50 to cut their wages by 20 to preserve the numbers of jobs that they have in a low cash flowing environment. I think that is important to understand. There was that big headline number of all of the workers that thought this was temporary because they were told they were put on furlough and they would andecalled back in 78. 3 78 point 3 thinking that they will be called back. In a world where we continue to socially distance, it will be hard to ramp up to anything close to what they 100 capacity was. On temporary unemployment may find it to be more permanent into the summer. David talk a little bit about the sectors. People were thinking or hoping that leisure and restaurants and things would be the bulk of it, they got hit hard. It was not limited to that. Health care is a surprise. You would think that would be up, but they lost over 2 million jobs. Diane it was stunning. Hide, evenowhere to professional services had massive layoffs. Losses, justirds Collateral Damage from schools closing. Those losses are interesting because it sort of counterintuitive and a Health Crisis that we would have Health Care Workers laid off. Many doctors offices, people started to pull back. We saw the Largest Health care losses in history in march before we shuts down because people stopped going to doctors offices for fear that they would get contagion. Dental offices were also shuttered and elective surgeries were taken off of the equation to help the hospitals deal with the influx of covid patients, a huge blow to profitability at a time when their costs are escalating. He really did see the Collateral Damage in an area you really did see the Collateral Damage in an area that is risky to reopen. My own dentist, despite easier constraints, he is not reopening and is still paying his staff because he cannot ensure the and clientse staff and keep the social distancing necessary when he is working in peoples mouths. Even in the healthcare industry, some of these job losses could be more lingering than many expect. David i do not want to let you go without talking about the fact that sadly, people who can least afford it get hurt the worst. You saw the average hourly wage go up a lot because the people losing their jobs did not get paid as much and minorities and women got hit hard. Diane exactly. We saw this disproportionate hit among hispanics and blacks, the reduction and losses in participation and also the Unemployment Rate for those less than a High School Degree surged over 20 and that was with reductions in participation in the labor force, so it is higher. When you start making these adjusted adjustments, we are in depression era levels. When you lose the participant Participation Rate among women, reflecting the number of jobs held by women, and also took over more of the parenting responsibilities as children were sent home from school and cannot rejoin the labor force, that will be a hard nut to crack. Because those workers who can least afford childcare will be left out and unable to come back to work which is a major hurdle. Remember, womens participation coming back was one of the reason we saw the Participation Rate improved so much that was driving the gains since 2015. David we really appreciate you being with us. She is the chief economist at grant thornton. The second hour of balance of power we will talk to Eugene Scalia, the Labor Department secretary. In this hour, we will be talking with the ceo of carrier, having a tough First Quarter. This is balance of power on Bloomberg Television. David this is balance of power, and i am david westin. Overob numbers were bleak, 20 million jobs lost and we talked with the National Economic council direct air, larry kudlow, about those numbers and his hopes for the future. , but this is a tough time it is a tough time for everybody. There is no question about it. Wherever you work or do not work as a tough time. This report is for love heartbreak, hardship, and i believe that it will prove to be temporary, because i think that the pandemic contraction or the contraction in the economy caused by covid19 will prove to be temporary, and that we are coming down the homestretch in terms of reopening the economy. It is a rough number, no question about that. Some of this looks to be temporary layoffs, maybe about three quarters of it. That still does not necessarily make it better. People expect to return to jobs. Vice president trumps leadership and Vice President pence put together and a norm us rescue package an enormous liquidity,age, payroll protection. I was adding it up. Includingrillion now, the Federal Reserve and what we have done on fiscal policy in the budget. Some of this may have worked and we may have cushioned the decline. That may be part of the story inside these difficult numbers. We will see how it works, and we will see whether we have to go back. Let us talk about president ial policies in a few moments because i believe the second half of this year according to the private forecasters, the second half is going to have very significant bounceback in the economic growth, and that will head into 2021 which could be a fantastic economic recovery. I want to understand, and i know you were optimistic, whether you have done Contingency Planning for a second wave and another shot down . Shut down, are you doing that now . Larry that is a subject that comes up. We will not go into detail, that is outside my lane. You will have to talk to dr. Fauci and Vice President and president trumps terrific team. I will tell you this, one of the senior people in that group, i asked that person what happens right now the virus numbers are flattening out, that is a good thing. That means we cannot reopen this economy that means we can reopen the economy. I asked the person what happens if we get a jump up, and response was, we will not have to reshuts down, because we know more, we have more experience, and second of all, we are better equipped. Are you rethinking your relationship with the chinese connie communist party . Larry first of all, from reports today, ambassador lighthizer, and secretary mnuchin met with the vice was a verychina, it constructive meeting. The printout, the communique is very positive, china continues to tell us that they have every of meeting the requirements and implementations of the deal that was signed last winter. It seems like 1000 years ago but it was only a couple months. They are a little bit behind on commodity purchases which might be a function of market and economic additions. They said they are pledged to continue, including remedies for intellectual property theft and related measures. Those talks seems to go well and were constructive. The chinese relationship is complex, and we know that the virus originated in china, and we are investigating, the u. S. Government and intelligence agencies, state department, etc. , are carefully investigating what happens and what did not happen. What may have happened and what actually happened. China has not been transparent. A lot of people are concerned. The g7 video teleconference meeting a couple of meeks ago weeks ago and the other World Leaders feel the same way. They will be held accountable when the final studies are in. David that was larry kudlow speaking from the white house with jon ferro. Coming up, we will talk with the ceo of carrier, david gitlin, about what lies ahead for his company. This is balance of power. David welcome back to balance of power. Earlier today, the ceo of engineering huge company, spoke about the future and the fact that they were withdrawing their 2020 guidance. I am happy to see that the market is responding well to what we have been saying. Obviously, siemens has been very early in restructuring the company to a resilient portfolio. It is health care, Industrial Automation and actions we have taken on the industry side. We are right on plan with our spin up, so we will have financing, and a very focused company portfolio, so i think that is what they are looking at. Of course, times are turbulent and complicated, and very hard to deal with because there is so much uncertainty from other partners and areas, but the fact of the matter is that there will be a time after corona, and that is what we look at to prepare for the upswing and how we will benefit from that in a proper way, and i always say to my people, the nights darkest before the dawn. Think about the future without neglecting what needs to be done now in a very severe global crisis. In the sense of the Balance Sheet and how you prepare it, you have recently secured another 3 billion euros in credit line. Do you have concerns around liquidity . Joe we do not. But we are endless, mindful about our cash position and we have a experienced and strong cfo who puts things together well. Earlye had our hem february, and we paid out the dividends which were up 10 from the prior year. We are done with that one. By the end of september we will past e Siemens Energy to the market as a spinoff, which means this is a dividend in kind of material size, meaning that there will be shareholder value associated with that for fiscal 2020. On the liquidity side, we did secure a 3 billion loan, but that is supposed to transfer to the energy asset so that they are wellfinanced and in a good position for a successful start into their Public Company environment by the end of september. Id that was seamans see siemens ceo. Meanwhile, carrier spun off in the middle of a pandemic. David gitlin has managed to do it and has his First Quarter earnings report. I am glad to have you with us, i am sorry for technical problems. Give us a quick synopsis. David thank you very much for having me and apologies for the technical difficulties. The First Quarter was very informative for us. What we saw was the pandemic started in china and our experience in china was very much a v shape. Andaw orders go down 50 down 40 for the First Quarter overall. The good news is that the snapback was just as steep. 29 e back in april at 2019 levels of orders. As it migrated west, it did hit us in europe, orders were down 10 in the First Quarter, and they accelerated the decline into april down 30 , and then, it migrated to the United States where we saw orders in the First Quarter down 5 and down 25 in the month of april. It has moved its way. I do not expect a recovery in the u. S. And europe to be as steep as what we saw in china. Recovery, a shallower but i am confident we will recover. David have you been able to learn anything about the thesis of your spinoff through this process . What is the advantage and upside . As is the advantage as an investment carrier, independent carrier, you can make your own calls. The conglomerate, it is main company that decides the direction. Independentdo as an carrier, make the cause focus of the priorities, which is profitable growth. Number one is focus on the growth agenda that we have laid out, and number two, we can become a more agile and innovative company, a very fast company that is focused on our customers growth. We are starting to see that with our team, and certainly going public on april 3 was not ideal timing, but in many respects a broader Team Closer Together and brought out the new culture of being very agile in this current state. About feel very strong our investment thesis and laid out three pillars of growth funded by aggressive Cost Reduction programs and all are getting great traction. David just quickly, if you will allowthink hbhc your business to grow, are you thinking about acquisitions or mergers, or is it too soon . David g. right now, no. We are focused on implementing our execution plan. We have said we will take a clinical look at the current portfolio that we have, and if there are things that we think are better with another company or things that do not fit our Strategic Priorities or financial criteria, we will look for we will look at making sure we have the right portfolio. If we decide we should divest something, we well. And furthermore strategic kind of transformative plays, the way we look at that is that we have a lot of port for leo optionality but not a lot of imperative. We will haven we will keep an i on those opportunities as we come forward. Will youwiki keep your cost cut goals . You might have to add costs to avoid the future of the pandemic . David g. we are actually going to take out an additional 400 million of costs beyond what we originally thought. Onare being very aggressive the 2020 20 Cost Reduction targets, and then longerterm, we said that carrier 600 is a cost takeout out of 600 million over six years. We are over on track to beat that number. I am confident in the current program. The key for us will be growth. One of the opportunities arising from the pandemic is for us to be part of the new normal, especially when we think about things like indoor air quality. David we will certainly be thinking about air quality going forward. Thank you and congratulations on spending off despite the pandemic. Coming up, Gene Sperling. He has a new book called economic integrity. This is bloomberg. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need saving you up to 400 a year. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. David welcome back to balance of power on Bloomberg Television and radio. Im david westin. It is time for first word news with mark crumpton. Mark bloomberg has learned a white house aide has tested positive for coronavirus infection. The second person working at the executive residence who contracted the virus this week. Earlier in the week, a member of the military who works on the white house grounds tested positive for the virus. President trump and Vice President pence said that they are each now tested daily for the coronavirus. Democrats on the Senate ForeignRelations Committee plan to introduce legislation today to restore u. S. Funding for the world health organization. Earmark 9ant to billion to support International Efforts