Without question, the data, another remarkable day after the remark about turnaround we saw yesterday. Jonathan ferro will give you that data in a moment. Coming up, terrific sets of conversation on economics. Youve got the retail sales data coming out that will be most interesting and important as a sign of the american economy. Jay powell at 10 00. In moments, we are honored to bring you the secretary of labor of the United States after the history made yesterday at the Supreme Court. Jonathan, that was remarkable to see what the Supreme Court announced yesterday, the Immediate Impact of those for and those against. Jonathan making some serious progress on a whole range of issues in this labor market, particularly on discrimination. Weve heard about the social injustice of the last couple of weeks. But we are making progress, and i think that is key. Equity futures are positive 43 points on the s p 500. Treasury yields, the curve is steeper. ChairFederal Reserve navigates that with the Senate Banking committee and how things progress on infrastructure, as we report this administration is looking at a 1 trillion plan. Tom lisa, i thought of you this morning when we figured out another 1 trillion for infrastructure, and Kevin Cirilli making it clear we may not see that, but we begin to buy Corporate Bonds today. Investmentg lqd grade bonds, looking for them to never go down in price ever again . Lisa ive been listening to you for years talk about triple leveraged cash flow triple leveraged cash funds, so i had to follow your lead on that. Theres been conversation on the fiscal stimulus ahead of the retail sales we get and about a half an hour. This comes as mcdonalds reports betterthanexpected sales, only down 5 in may after plunging more than 19 in april. Theres a question, how much of the uptick we are seeing in the data stems from the enhanced Unemployment Benefits that are giving a lot of workers spending power at a time where the jobs picture is still very bleak . Tom let us get right to it. We have a lot here on our simulcast, and we will come out of the. The secretary of labor of the United States, eugene scalia, we are thrilled to have you on after this Supreme Court decision. How will the department of labor adapt and adjust immediately to this historic decision . Sec. Scalia good to be with you. Yes, it is an important decision. The court issued it yesterday. We dont have the primary responsibility for administering that particular law. The equal Employment Opportunity commission is the Agency Charged with administering title vii. But we are certainly reading through the courts decision. The court has ruled, and we will adhere to that. Tom it is very important to understand that you will set the tone, and we would suggest that jean scalia has been doing that that gene scalia has been doing that for years. Theres ideas here of the religious exemption to the normal labors of this country. That businesses can say we digress from this ruling, we are not going to do it. Do you think that will be evident immediately . How should eeoc or labor respond . Sec. Scalia i think that was one of the issues that justice gorsuch, in his opinion for the majority, sidestepped a little bit. People ofedged that faith and religious institutions affectedrly might be more than other institutions by this decision, and he said that is an issue that we will address some other day. I think that was one of the issues the decision potentially addressedat will get by the courts down the road. Dissenters would have liked the court to address that more fully, but the majority didnt. Thank tom tom you for addressing these issues. Tom thank you for addressing these issues. Give us an update on what your micro data sees of a depression level joblessness in america. Tom well, i have to say ash sec. Scalia sec. Scalia well, i have to say the comparison to the depression only gets you so far. We have had very high unemployment. We have had too Many Americans put out of work, and we know the hardship for them and their families. At the same time, we got here by a very different route than we got into the great depression. I think the jobs data we put out suggests we will come out of it by a different route. Trend that isa continuing right now. That data was a month old. Theres been a lot of reopening since then. So i think people are getting back to work. It is important that that happens safely, and that is something we keep an eye on, but i think we are making real headway on the employment picture right now. Jonathan lets talk about that. Do you see any evidence right now whatsoever that the enhanced Unemployment Benefits are holding back rehiring . We hear concerns about that raised anecdotally by a number of employers. The point that they make is that with the enhanced unemployment benefit provided by the federal weeknment, which is 600 a come on top of the state benefit, people can be making and 55,000 on an annual basis on unemployment, significantly more than one see s, and the concern is that they will not return to work. That benefit expires at the end anticipation that we wouldnt be shutting down our economy at that point, that we would want people to go back to work. Lisa when we spoke to you last, you said you do expect those enhanced Unemployment Benefits to expire in july, and we have heard the same from other administration officials. What could meet you chain what could make you change your view . What data would come in weaker than expected that would make you think, even if people are making more than they previously made, it doesnt mean that they , andt going back to work at least they can continue to pay their rent . Sec. Scalia i think those are a couple of different questions. We will look at a variety of data coming in. On july 2, we will put out a report for june. I think that report will show many more jobs added to the economy, but lets look at that report, watch other trends, and see what additional measures may be needed. Going to bek it is continuing that 600 benefit, which was a very important, valuable benefit for American Workers while we were closing our economy, but it was a blunt instrument. It is in light of some real limitations states had in their item limit systems. There unemployment systems. I dont see that as the policy Going Forward. Secretary, are you working with you to permit of transportation on that plan the department of transportation on that plan . Sec. Scalia there are discussions across the administration on what the right steps are for the economy. We certainly appreciate the implication that the infrastructure bill could have throughout the economy on unemployment, and there are things being talked about. Jonathan is infrastructure one of them, a 1 trillion plan . Sec. Scalia there have been different numbers put on it. I will just say that certainly, something being talked about, and there has been interest to sprecher there has been interest expressed in it. One of the things i have said before is one of the marks of the virus is how swiftly things. I think it is important to watch the economy develop, whats the rush ing, and not to a playbook we used in march, for example. Jonathan hopefully we can get you back on soon because this labor market healed quickly, but i am not sure how many think that it will continue quickly. There, the u. S. Secretary of labor come on this labor market and the global economy. This is the key issue right now, the bounce as we reopen. Continue . How much more assistance what we need from washington, d. C. In the months to come . Tom a complete mystery. With 200,000 claims long ago, and we explode to millions. Yes, we are coming back, but i would suggest the next four to six weeks of weekly jobless see a complete and total mystery. Jonathan we see this in some of the big. We see this in some of the big multinationals towards the end of the year. Lisa some of the first cuts were the lowest income employees. Now there are talks about managerial staff being laid off. We are seeing this anecdotally. I am wondering what that will do in terms of the data to keep the economy chugging forward. Jonathan much more to come this morning. In around 19 minutes, we will have u. S. Retail sales. Full coverage of the Economic Data coming up. 90 minutes after that, you will hear from the chairman of the Federal Reserve, Jerome Powell, and front of the Senate Banking committee. Full coverage come alive on bloomberg tv and bloomberg radio. Alongside tom keene, im Jonathan Ferro, together with lisa abramowicz. We will hit the markets with james athey of aberdeen standard investment, the senior asset manager. Equities drift higher on the s p 500. Treasuries lower, the yield up, curve steeper. Risk appetite improves compared to 24 over the ago. From new york, this is bloomberg. Ritika with the first word news, im ritika gupta. The Trump Administration is preparing its latest proposal to get the economy going. Bloomberg has learned the plan calls for spending almost 1 trillion on infrastructure. Most would be set aside for traditional projects like roads and bridges. It would also spend on 5g networks and rural broadband. Fed chair Jerome Powell is expected to give another downbeat view of the u. S. Economy today. Of hearingso days on capitol hill with an appearance before the Senate Banking committee. Last week, fed policymakers held Interest Rates near zero and signaled they would probably stay there through 2022. It is one of the largest provocations north korea has made to south korea in years. Kim jonguns regime has blown up an interkorean Liaison Office on its side of the border , according to south koreas unification ministry. In recent weeks, north korea has issued an escalating series of threats against the south, unhappy that south korea backs the u. S. Led sanctions campaign. The u. K. And European Union believe they are a step closer to a brexit deal. They believe a video call between leadership has injected momentum into negotiations. They suggest that johnson is willing to soften his position, and european officials said they are willing to do the same. It may take a couple of years for Global Oil Demand to recover, according to the International Energy agency. Theiea says fuel use around world will remain 2. 5 percent lower next year than in 2019, largely because of what the agency calls a dire situation of the aviation sector. They also predict that output cuts and shutdowns should put the oil market into deficit next year. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Just announcing the fact of moving forward with individual bond buying suggests that much more of the capacity of the fed has talked about using up to now will get to work and put to work rather soon, and that is an increment of positive an increment of positive. That is a Huge Positive for the credit market over the last several months. Down to the opening bell, one hour and 12 minutes away, with equity futures dancing higher on the s p 500. We advance 55 points, session highs going into u. S. Retail sales on equity futures, in a roundabout an hour and 40 minutes from hearing chairman powell on capitol hill. Lower,ies are softer, weaker. Yields higher by three basis points. That steepness is back in the curve, the cyclical rotation back in the equity market in the second half of yesterday session. Tom just extraordinary. You say second half of yesterdays session. I thought it was just amazing, the gloom that we felt while we were doing this 24 hours ago. ,hen we launch forward launching down the field when the premier league opens here in a bit. You know thats got to happen. Does that mean we have james athey of Aberdeen Standard Investments with us . Are you going to bring in the fans from london with us . Tom every six weeks, we are required to have a spurs fan. Mr. Athey joins from aberdeen stamford. It is from aberdeen standard. It is incredibly loved market. The cliche is walls of worry. How higher those walls right now . It is just is it just the resurgence of able market based on worry of a bull market based on worry . James ive probably got more conviction speaking about spurs then i do about this equity market. Interesting one of the interesting questions to the fed in equities. You talked about how quickly jobs come back, how much demand weve lost, how much mediumterm damage there is, how much companies, individuals are forced to pay down debt as opposed to spending and hiring. All of that stuff is very difficult to analyze. What we got from the fed yesterday didnt seem to come at a time when any new information was available with respect to the economic outlook, but the one piece of realtime information was that risky assets have been having a bad couple of days. It did seem to have already found a base, and we got the fed seemingly trying to goose markets a little higher. Is that a reflection of how sensitive the fed and other Central Banks are going to be . It is very difficult to believe that there isnt a longer period of risk on for asset markets, in spite of how crazy that looks compared to the real economy. Jonathan they are dammed if they do, dammed if they dont. They would have been criticized heavily at the end of february for not stepping up and stepping in when it was clear this economy was breaking down in a significant way. As they step in even more and start to carry on saying that this is about market functioning , at what point does that impair market functioning from doing this much . James already think it is impairing market functioning, and i think it has for many years. When using about market functioning, one of the primary functioning of markets is accurate pricing of risk and the role of allocated capital in a sufficient manner, making capital go where it is going to be the most positive, in terms of returns, but also in use of that underlying capital. Markets should not be esoteric casinos. Connectedd still be to drive that valuation. I think we are in that place where it is continually impeding the true function of markets. If there a point at which all of the central banking is no longer able to push prices up, where markets just start to say this sentiment . Ing the price beginning to the unlikely mess. At the moment, it doesnt seem so. The question is that there are certain investor types, investor styles within markets that dont really care about fundamentals. There either they are very much about price moves, and they could keep the market supported for a long time. Correct, ift is there is a point where Central Banks run out of room to prop up not just buy the riskiest securities and watch the prices rise . James i think people are doing just that. It is really anecdotal, and we try not to use anecdotes to drive an investment thesis for obvious reasons, but some of the anecdotes around retail in the most beaten. P names, that is concerning in days and weeks simply because the narrative around that firm is popular. All of this stuff is indicative of exactly that sort of behavior where people really are throwing out the textbook as to what it is exactly they are buying, and just latching onto narrative and sentiment and momentum in the most aggressive way possible. That can be a very successful strategy. We know from other experienced investors that participating in a bubble is not necessarily rational, but you just need to make sure you get out before things start heading in the other direction. Where that point comes is difficult to say. It is lightly to be collective psychology rather than something fundamental or even related to policy. Jonathan looking forward to catching up with you soon. James athey of Aberdeen Standard Investments. Equity futures at session highs, up 57 points, 1. 9 . We are five minutes away from getting the u. S. Retail sales, as we await prepared testimony from fed chair jay powell as well, and equity futures rallying into the event. Tom theres no question, it is more than a rally. Call it. , you can acceleration like your automobile, jonathan. Just extraordinary to see what weve done not only in the last 24 hours, but in the last 20 hours from that bombshell at the fed yesterday. Jonathan questions for chair powell . I thick its got to be about fiscal. I have no doubt some people will be criticizing what they do on the monetary side, but we are really trying to figure out the next fiscal steps, arent we . Lisa and how much he is going to push for additional stimulus from the federal government. I am wondering what he is going to say when it comes to taking on credit risk and backstopping companies against bankruptcy, a key question. Jonathan the Economic Data five minutes away. Equity futures up 1. 9 . Live on bloomberg tv and radio, this is bloomberg surveillance. Jonathan from new york city, this is bloomberg surveillance. For our audience worldwide, we are live on bloomberg tv and bloomberg radio. Alongside tom keene i am Jonathan Ferro together with lisa abramowicz. We wait jay powell in front of the senate, tomorrow in front of the house. Retail sales. Lets head to michael mckee. Retail sales, up 17. 7 . More than the decline in the month of april, 16. 4 down in may. , up 17. 7 if you drop from a higher number any rebound, you are still below where you work. That is where we are at this moment. Autos up 12. 4 . The forecast is up 5. 5 . Gas Motor Vehicles and parts up 44 during the month. There were almost n