Weve already had some great conversations this morning. We drive that forward in this hour, and out to jon ferros the open at 9 00. We are really going to focus on the dominion Warren Buffett transaction, which i find absolutely fascinating. Within all of this is a lift to the market because the government has the back of the financial system. The dominant feature right now is the certitude of 1 trillion here or 1 trillion they to buoy the economy up into the end of the year. Jonathan maybe another 1 trillion this month as well. Theres a huge debate taking place in washington. It is not a matter of when. They will do this. It is not a matter of how big. It will be large. It is a matter of the composition, what they agree on a moment. I am edging there is going to be some pushback down in washington in the next several weeks. Futures up 38, dow futures up 374, so a real lift to the has as aea all of this backdrop dependent. It is really a mixed picture. Theres no russian about that area speaking to the Lieutenant Governor of new york, things are in new york state, but for the rest of the country, there are some real challenges out there. Exactly why wanted to go. We got a Record Number of cases in the United States over the weekend on that daily count. Cases in the sunbelt absolutely surging. It is raising a question about that stimulus bill that will get past. It will be big. It just depends on the composition. It goes to Catherine Manns point. People have cash in their balance sheet, but you have a situation where who is going to go out and spend if people are worried about getting sick . It is increasingly the reality. It will get worse in the fall. Tom no question about it. Im tom. Hes jon, lisa. [laughter] lisa i know you guys are getting matching tattoos this weekend. Tom actually, i got mine. I forgot to tell the Lieutenant Governor. It looks quite good on my arm. It goes next to my tottenham tattoo as well. My tots tattoo, jon. [laughter] it is a spurs tattoo, before they lost. Jonathan carryon. Tom lets go to the news. Our first word news in new york. Heres ritika gupta. Sorry. That was my fault, folks. Im thinking of the way we do things at 6 00 versus the way we do things now. Right now we are going to bring in Alicia Levine. She is wonderful on the equity markets, and really a more holistic view of what to do. You have been absolutely wonderful at bny mellon on the idea of staying in the market nervous. How do you accomplish that to the end of the year . Alicia good morning. Great to see you as always. Nervous, the market that is still our message. T is extraordinary i think we are all stressed the we are all scratching our heads. I listen to the Asset Classes, and that is what they are telling us. Jonathan something you said over the last couple weeks that i think is really important, not about the pace of the recovery. Just about the direction. I think that is something a lot of people have failed to appreciate. The direction of travel has mental left of this market. Has meant a lot to this market. Alicia thats right. With think this summer could be a test in some consolidation, not least of which that the Third Quarter tends to be the worst performing quarter historically, so when you add that with some of the news items you three have been talking about, you can get that here. However, the direction of travel is upward overall, and i dont think this should be shaken out here. And change the sectors you are interested in. Our many sectors that simply have not participated yet. But the direction of travel for the economy is, even if shallower then we hoped two weeks ago. Jonathan the consensus is that this is the bounce, then the recovery starts to slow in late summer. I keep coming back to whether anemic growth the future is sufficient to carry out driving equity gains. Do you think it is . Alicia i think we have to separate what the supports for the market and the economy are versus what the fundamentals of the corporate sector are. In the end, the overwhelming amount of stimulus coming from the fed and from congress, and we do have the fiscal clip and by the way, because the resurgence in cases is happening nexte south, i expect that stimulus bill to be larger than 1 trillion because it is going to hit home for many more people in the senate. Theres an understanding that what has kept the economy going are the transfer payments from to households that have been out of work. The fed has been out there having every single Asset Classes supported. Even if it is a nema gross, markets will be support even if it is in anemic growth, markets will be supported. Lisa Balance Sheets on the consumer side are strong, and their own are flooded with cash. We saw Warren Buffett take a stab over the weekend, and uber said to be agreeing to buy postmates. Uber shares up nearly 8 ahead of the open. How much will consolidation really be the hallmark of the companies lookas for any advantage in this economy . Alicia i think you will see a lot more m a simply because the primary funding markets are open and cash is available, and there are going to be winners and losers. This is the kind of economy and market where relative strength matter more than if you had a decently growing economy. That is positive for the market. I think the Berkshire Hathaway news is also very positive. I think that is the reason you are seeing positives. Lisa when you said you were looking at your outlook and said the economy of 2030 was brought forward 10 years, what does that mean in terms of where you want to invest . Alicia the structural changes we have all been aware of, the kind of Consumer Behavior that we are slowly happening in creating some shakeout now have been turbocharged. So whatever you thought the economy was going to look out 2030ok like and 23 v in , we are getting it now. You have already seen certain kind of businesses that can simply not survive this Going Forward. Consumer behavior will not change entirely, but it will on the margins. I think the Health Care Sector is a huge place to invest here. You will see so much money and investment coming for both biotech and largecap pharma to deal with some of the data issues that you need to get health care right. That is all going to be accelerated. Will corporate behavior change . Is the thing that we are missing here that we are going to see an m a boom like we have never experienced before . Alicia this is the interesting question, and i think this is where politics comes in. I think you will see an m a boom. Theres not a lot of time left to get these deals done before the election. Own, theret to their has to be some eye to what the regulatory picture is going to look like a five november going to look like after november. Cash is plentiful. Levine, lovecia getting you on the program. Thanks for your time this morning. I think the point she was trying to make, and forgive me if i am wrong, but is that come november, a new administration is maybe not likely to allow some of the big m a that we have seen over the last years. Tom no question about that. That is part of the reason i am moving the question forward, and it works off of this 9. 7 billion transaction of mr. Buffett this morning. I will agree with that. You get out front and political , mr. Trump has a viable path to reelection if he chooses. Jonathan what was it about the past week using get some important now . Tom i think the democrats are a little bit in chaos. A lot of this will be clarified with Vice President bidens Vice President ial pick. We talked about that earlier. I think it is really front and center. And it is a conventionless election, which is really remarkable. Jonathan that campaign for him really hasnt started in a traditional sense. From new york city, good morning to you all. Alongside tom keene, together with lisa abramowicz, im jonathan ferro. Your equity market pushing higher come on the s p 500 come on this be s pushing higher, on the s p 500, i 30 points. Nonism manufacturing coming up. This is bloomberg surveillance. Ritika with the first word news, im ritika gupta. For the 27th day in a row, the u. S. That a coronavirus record. New cases reached another high yesterday. India noweekend has the thirdlargest number of coronavirus cases in the world. Only the u. S. And brazil have more. India failed to suppress the virus despite implementing one of the worlds most expensive lockdowns at the end of march. President trump sounds as though he is changing his position on masks. The president will hold a rally saturday in New Hampshire and face coverings are strongly. Couraged the u. K. , it is injecting 2 billion in an attempt to rescue the countrys arts and culture sector from the brink of collapse. Chancellor of the exchequer rishi sunak tweeted, the show must go on. He is trying to protect jobs from being lost. Uber is expanding its food Delivery Business. The Delivery Business has agreed to buy postmates in an all stock takeover. Uber recently failed to complete the takeover of another food delivery service, grubhub. 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. Gupta. Ika this is bloomberg. In the United States, we spend 3 trillion now. That is good. To keep that level of stimulus up next year, you not only have to replace the 3 trillion, but add more on top of that. I think theres a reality check here that in order to give the Public Sector pushing the economy forward, there has to be more and more amounts of money, and i dont know if it is finance of all. Jonathan Carl Weinberg on bloomberg surveillance earlier this morning. We will face another test a little later on this month, may be later into the summer, when washington is another push for another fiscal package. From new york city, good morning to you all. Alongside tom keene, together with lisa abramowicz, im jonathan ferro. This is bloomberg surveillance , live on bloomberg tv and Bloomberg Radio. 40 points higher on the s p 500, up 120 5 . The message from Alicia Levine i thought was plain and clear. If buffett is back in, it cant be that bad. Tom absolutely. I am frankly in that camp at that gives a general lift to positive construction to the day forward. The best article over the weekend on the virus was from the wonderful William Booth of the washington post, writing on the science of vaccines. Not behind their, not the political debate not the hot air, not the political debate, but actual scientists sitting in labs working. Weve made every effort at bloomberg surveillance to speak to these experts. Of baylor was in the article, and of course, deborah fuller of the university of washington, one of the worlds experts in how you test vaccines. How you do it in people, how you do it in primates. Deborah fuller joins us now. Dr. Fuller, we are to the testing season. Will this be a normal testing for vaccines, or will this time be different . Dr. Fuller this is a very different season for testing vaccines as it has accelerated much quicker than we have ever seen any vaccine tested before. Most vaccines would take between five to seven years to go through Clinical Trials, and what we are looking at here is an accelerated timeline that is 18 months to two years so you can weaken so we can get these vaccines up to people as quickly as possible. We are looking for predictions for some of the earliest vaccines to be available and into the population as early as and early into 2021. Tom you say there is no silver bullet. Do we assume that there will be a vaccine, and then booster shots were booster vaccines along the way . Number of theres a vaccines being developed, i think greater than 150 current vaccines in various stages of the pipeline. Some are in Clinical Trials. Some will enter Clinical Trials very soon. Theres a lot we dont know about this infection yet. Dont know what kind of immune responses we need. There are studies to suggest that theres not just atibodies, but potentially piecemeal response. As different vaccines begin to roll out, we start to see how well they work. Some vaccines may not work as well, for example, in the elderly. It is known that most vaccines dont work as well in older people. Yet, we have a lot of different strategies Going Forward, so you might see some gun scenes some vaccines work that are work better, some are able to be produced at mass doses. The first ones that come out may not be the best ones we have, so as we begin to see additional ones, we might see populations taking booster immunizations that raise their immunity and sustain their protection from the infection. Lisa defective, there is an ash this isut de facto, nature according to a number of poles. How concerned are you around the push around that to convince americans this is safe . Dr. Fuller there is quite an accelerated timeline, but one of the things to keep in mind is for all of these Clinical Trials, they are still checking. Ll the boxes not skipping any of the safety print. The safety criteria required to release a vaccine into the population. So if we have a vaccine first available in late fall, it is important to note that that is not going to be available to all 5 billion people in the world. They are going to roll those out in hundreds of millions of doses populations,tain what highrisk, say in areas where theres a lot of infection going on. First responders and the like. This is going to actually have quite an important impact in helping to slow and moderate the pandemic, even as we are starting to scale up and bring anyone that would be able to offer globally to the population. Jonathan on the outside looking in, it seems like theres a term in this amount of confidence that we can develop a vaccine and that we can do it a whole lot more quickly than we typically would take. Take us in your world. What underpins the confidence that we can do this on a much tighter time for time frame . We were quite a bit in preclinical studies, where we. Nvestigate we have seen a lot of promising data to indicate that the vaccines are inducing the kind would expect to provide protection. With that said, we wont for sure until it is actually in efficacy trials, where it is. Oing to you compare it to people who get placebos to see whether or not it is truly efficacious. We dont know until we actually see human trials whether or not antibody response, which is the primary immune a response we are targeting with our vaccines, are really going to be sufficient to provide protection. How durable is that antibody going to be . If you vaccinated population, you can just have antibodies around for 30 days and expect that to protect. It is going to have to be sustained, at least for six months during a season. So theres a lot we dont know yet. Jonathan we appreciate your time this morning. Hopefully you can come back soon and keep us uptodate on everything. Deborah fuller, microbiology professor with the university of Washington School of medicine. We cannot normalize this economy until we get a view on dependent. He joins the program next. In your equity market, up 41 on the s p. Add some weight to the rally last week. It is a Global Equity market rally, ones of the Chinese Media fully endorses overnight, with the shanghai composite is delivering a major gain. This is bloomberg. 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. This is bloomberg. 120 countries. This is bloomberg. The best tv experience just got better because now you can watch all your favorite hulu shows and movies on xfinity. Youre only a voice command away from Award Winning shows like the handmaids tale, to new hits like little fires everywhere. And fx originals you can only watch on hulu. Thats just the beginning of what you can experience with hulu on xfinity. Tv made simple, easy, awesome. Iredefined the wordng thschool this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. Jonathan the equity market rally goes global this monday morning. Good morning to you all. This is bloomberg surveillance. Together tom keene with lisa abramowicz, im jonathan ferro. Equity features of 41 the s p. The shanghai composite up 5. 7 . A reminder of that bubblelicious episode in china. Treasuries and south, yields head north. 69 basis points on a 10 year maturity. Ahead of the Economic Data this morning. Pmis and then at 10 00, nonmanufacturing ism. Your dollars weaker, your euro is stronger. We lets pick up on what have learned since the jobs report in your interview with mr. Kudlow, thinking over the weekend about where are we. I know jonathan wants to talk about the dynamics with our next guest, ethan harris of bank of sophisticatedng economic coverage at the bank. Let me get sophisticated for you. What is the difference between a furlough and a layoff . Any idea . Furlough is what happens before you get laid off permanently. No. A cruel comment. The furlough is where you explicitly expect your job to is morek and layoffs likely the job does not come back. What is happening now is wher