Small caps. Day fromw up 7 on the the march lows. Energy is now up. It is incredible, the risk rally. David unfortunately, we do ask you to repay your credit card. Is there any hesitation in the bond market because we are ready to go out with Something Like 3 trillion this quarter. Abigail the issuance is incredible, wondering whether or not there will be the demand. We do have a pullback for bonds, but nothing along the lines of what would be stunning to the market. One expert to join us for a bloomberg segment, saying from a technical standpoint it does look like bonds are set to drop. Whether or not that comes on a risk on mode where investors do not want bonds, or if there is something scarier where there is not demand remains to be seen. At some point we will have to pay for this, but right now jay powell is saying dont worry. Lets get out of the crisis. Investors are listening. David thank you so much for that report. That is Abigail Doolittle reporting. One of the things that may be encouraging equities is the report out of moderna that their candidate for a possible vaccine is encouraging in the early stages. We talked earlier today about the ceo about when they go to the next phase. We are finalizing the protocol for phase three, which is last Clinical Study before approval, which we are hoping to start in july of this year. Will be 7000 subjects across many countries. We are finalizing the protocol we speak and we are hoping thed we want to bring in man who covers the Healthcare Industry for us. He is drew armstrong. We all want this to work. But as i understand, it was a fairly small test, not even designed to figure out efficacy. It was mainly for safety . Drew this is good data and it has passed one of the early checkpoints, which is the small early safety study, it will not be the last look at safety. It does not give us a hint of efficacy. It is news you would want to hear. It tells us there are signs this does some of the right things in a test tube against the virus, that it create some kind of immune response, ill be at one that has not been tested in the albeit oneand it that is not been tested in the real world, and it has a safety protocol in line with other vaccines. Did waso be what it it showed it created antibodies. We are not convinced what those might do, right . Drew right. There are a couple of different subsets of things they are looking at. They are looking at did this vaccine create antibodies that go and bind to the virus . Those are called binding antibodies. It is not enough for the antibodies. Those are the reactive parts of the immune system that are created when you are infected with something. To they also neutralize the virus . Lots of caveats. It does appear to neutralize anybodys. The issue is this has not been put out in the thousands of people that will be needed to test this drug in the real world in properw it does reallife handtohand combat with the virus. We do not know that and we will not know that. We also do not know things like how long does this protection last. Is it effective in all groups of people . There are more Unanswered Questions than answers ones from data like this. And youill good news can see the market broadly reacting. On friday we heard from the president about this operation warp speed where they will try to creta vaccine by the end of the year. Effort haveerna anything to do with that . How does it fit warp speed . Drew warp speed is a catchall for a variety of government efforts that are ongoing. It is an umbrella that picks up pieces of things that have been in progress for a long time. The idea with warp speed is to help Companies Developing these partner with government and provide all of the resources they can and eliminate some overlap. It seems likely, and we know mode turner we know moderna has worked closely with the u. S. Government already, it will be part of that accelerated effort. If things continue to look good, that means producing some doses of the vaccine before you know whether or not they work. Set they areas planning on launching the second phase trial imminently and a phase three trial that would give us the final answers on the efficacy in july, with several thousand people. David finally, theres been a growing discussion about when someone gets the vaccine, whom will it be available to. The who has been meeting virtually and president xi said of china gets it, it will be available to everyone. If moderna comes up with vaccine, is it clear it will have to be able to everyone . Drew that is a fantastic question. One of the things policymakers will have to figure out is we will see batches of whatever line in the off the millions, but not enough for everyone to get this at once. What weve heard from most people is the first to get this will be Frontline Health care who are the first to get the infection as well as elderly vulnerable people. You can expect to see a phased rollout of this vaccine. I think theres a lot of pressure to make sure the vaccine is global, but there is a current of vaccine nationalism come in terms of economic protection, population protection, and International Prestige going on. Thank you so much for being with us. That is drew armstrong who is responsible for health care reporting for bloomberg. Coming up, out editor in chief matt winkler will join us to explain why the republicans should not be that worried about helping the blue states. That is coming up next on balance of power on Bloomberg Television and radio. David welcome back to balance of power on Bloomberg Television and radio. Time for first word news. We go to mark crumpton. Hek william barr has said does not expect the Justice Department to open a crew investigation into barack obama or joe biden despite plotting to do so by President Trump. The attorney general told reporters at a News Conference he will not allow the Justice Department to be used as a illegitimateum up investigations. Germany in early have agreed to back band for a Recovery Fund to help the european reunion whether the coronavirus pandemic. In a show of unity, Angela Merkel and Emmanuel Macron appeared together in a Virtual Press briefing today amid deep divisions over the Recovery Fund. The biggest obstacles have been bridging differences between richer and poorer nations. More than 108 Million People in northeast china are being plunged back into lockdown positions. A new and growing cluster of Coronavirus Infections has led to the abrupt reversal of the reopening. Train and bus service has been orderedpeople have been to stay quarantined. India recorded its biggest single day surgeon coronavirus cases today. Authorities are largely blaming the jump on the return of hundreds of thousands of Migrant Workers to indias villages after losing their jobs in indias population centers. India has had more than 96,000 cases, the most in a show. Or than 3000 people the most in asia. More than 3000 people have died. 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 mark crumpton. This is bloomberg. David thank you so much, mark. Senate Majority Leader Mitch Mcconnell warns of a possible blue state bailout, the attempt to get support for state and local governments. Bloombergs at her and her and she temer it is bloombergs editor and chief is looking at the facts. We welcome matt winkler to talk about his piece on the bloomberg. Give us a sense of what you found. Look we basically took a at every aspect of Economic Performance of blue states and red states if we go by the 2016 president ial elections where 30 states with voted for trump would be considered red, 20 that voted for hillary clinton, that would be blue. You can drum up on the bloomberg, gross domestic product, personal income, tax revenue, total employment, and the Labor Participation rate, not to mention the meanness of all bond market where blue states have been more coveted in their debt, that is they have outperformed red states in the past five years. Every single category of Economic Performance, the blue states have done better than the red states. I might add that on the Labor Participation rating, it actually went down in the past five years in the red states and went up dramatically in the past five years in the blue states, that people no matter where they were, they wanted a job and they got their job. David im not sure the bloomberg would show you this, but do we have any idea why that might be . Is it possible blue states tend to spend more money on their budgets and tax more and that is an investment that resounds to the benefit of the economy . Matt i think you have set it just right. Is an attitude or policy among democratic governors and legislatures to invest as much as they can in their people, whether it is health care, whether it is infrastructure, and they generally do that. The red states are tax averse and therefore their ability to raise revenue to support things Like Health Care and infrastructure is not nearly as robust. That goes back quite a ways. Policy. Lot to do with same time, Mitch Mcconnell and other republicans have a point where some of the pension obligations of the state. I went back and did research and pew came out with a study last july. It is interesting the states do the best and the worst. Some of the worst include new jersey and illinois, but also kentucky, mcconnells own state. The best include south dakota, tennessee, and wisconsin. It does not seem to break down naturally on red and blue lines. Matt on that very issue, unfunded pensions, for the most part, it is a kick the can down the road policy, whether it is blue or red. Having said that, rhode island, for decade was considered one of the worst, if not the worst for unfunded pension liability. The governor, first as treasurer, and that is governor, fixed it. The way she fixed it is she said we will tax truckers who are going through rhode island between new york and boston. It was a very unpopular tax, like most taxes, but it did make a big difference, and rhode island went from being in the bottom half of u. S. States and Economic Performance before she halflected to the top before her first term ended. She is not alone. Jerry brown did something similar. He simultaneously cut spending and raise taxes. Term ingot to his third 2011 as governor, he served four terms. When he got there, he did the that madehings california an ideal choice for investing. The proof of that is that in the credit default swap market, california outperformed every for theand every state next three or four for the next three or four years of through his third term. David thank you for being with us. That is bloomberg editorinchief of affairs, matt winkler with an important piece in the bloomberg. Coming up, would be talking with lloyd blankfein, former chairman and ceo of Goldman Sachs. That is coming up on balance of power on Bloomberg Television and radio. David welcome back to balance of power on Bloomberg Television and radio. Mark zuckerberg is speaking to the European Commissioner for internal markets. We will join that in progress. Looking forward, this is clearly going to be a very big economic recession and long what weovering are focusing on is helping Small Business around the world. There are more than 25 million Small Businesses. We have a presence online and reach people across facebook and instagram and whatsapp and messenger. A smaller set of those advertise, and that is what makes up our business. Small businesses are the vast majority of our business. We are very aligned with making sure Small Businesses can grow and thrive. Right now they need a few things to make sure they can survive. One is financial support. We launched a 100 million grams program thatants will provide grants to more than 30,000 Small Business around the world, including tried to provide financial support. Is through this period a lot of businesses are lying more and internet tools. A lot of businesses that previously had a physical storefront are coming online for the first time and a lot that had additional storefront before are now finding that is their primary way of selling stuff and reaching customers. We are working on a number of different tools to basically accelerate that. We have a big announcement coming up tomorrow where we have had longterm commerce tools we have been working on building and i did not want to preempt my announcement tomorrow by saying what it is now, but there are a lot of things we have been working on for a while, and since this crisis hit, ive been meeting with our Small BusinessCommerce Team every single day to make sure we can accelerate that work because it could be very helpful to a lot of Small Businesses that are getting to this period and thriving as they come out the other side to do more of their work online. There is certainly a lot of different fronts on this, but i think more business and more life will be conducted online coming out of this and we need to make sure the tools we have built are robust enough to support that and help support the economy and recovery. Phase, and most likely the beginning of the recovery phase from covid19 will coincide with the publication of new European Commission proposals on the regulation of online platforms. Before addressing specific subjects, i would like to relate the first question from the ience, which is addressed the question is the following. Platforms. On a wide range of activities, m social media to facilitating travel bookings. Do you think that regulations should very to take account of these different activities, and if so, how . You mentioned it. Is that we were working on this. It is clear we are working on this. Coming back to your question and back to what mark just said, it we are still describing a lot of habits changing. Online drastically during the crisis. Almost every Single Member state in europe. People are used to it. [indiscernible] when you start to do this, you will use it. It is true i wanted to come back to what we learned during the situation. Add is that we have to invent, we have to future. Ogether our we have to do this. We have been able to invent a way of working together during this period. , we just invented. We were in contact not every day but at least every week explaining the problem we had, finding solutions together. To be able to serve. Just being able to help. Without any other thing behind. That is for me extremely important because those platforms are playing a huge role today and tomorrow. If they want to continue to play these roles, they have to learn how to discuss with us, cooperate with us. Mark put it very well. Business. And your we appreciate your business. Who should adapt ourselves to you, but vice versa. This is the way it has. We are democratic. We are representing 515 Million People and we need to make sure own will continue with our democratic systems. Then we can regulate the platforms. David we have been listening to Mark Zuckerberg of facebook in conversation with the eu commissioner. You continue to listen to that. E< here we will be joined by lloyd blankfein, the man who led Goldman Sachs through the great financial crisis. This is bloomberg. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. David welcome back to balance of power on Bloomberg Television and radio. Im david westin. Blankfeinrs, lloyd served as the chairman and ceo of Goldman Sachs. We welcome them back to bloomberg. When i spoke to you at Goldman Sachs, you said you essentially assessed and managed risks. Do some assessment and management for us now in this crisis. Assessinght we be mis the risk, and mismanaging it . Lloyd there is a lot that is unknown, unknowable, and moreover, no one knows. You can dig and day, but currently, we is are not so much in the realm of forecasting but contingency planning. One of those contingencies you have to plan for it is the surprise. In my former life, surprises were almost always bad surprises. Something would go wrong, we were so big and extensive, there was nothing that can go bad in the world that would not affect us. At this moment, we are seeing that today. Somethingility of highly improbable happening could actually be good for the market. Somebody announces they are making progress on a vaccine. It is a funny situation. I i was watching the news and saw a flash, a surprise coming, im looking forward to hearing it, whereas before it w