Economist poll were expecting 54. 2. So it is well north of that. The jobs number well wait for the details of that tomorrow. Im really curious as to what is happening in the employment picture right now. But over the next few days, well get more employee information on that following last thursdays blowout data. But this is a very, very strong number. How did that translate into perception of what is happening with the economy now while Global Equity markets as kaley said, starting to weaken very strongly. The china data helping out. But some investors despite what were seeing, strategists saying the returns to be limited. The c. I. O. Of hedge fund capital is not particularly optimistic. The economy is in a very troubled place. Frankly, the worlds in a very troubled place. The market is across all Asset Classes, the markets are incredibly volatile. The performance within asset class is incredibly dispersed. Thats going to be with us as the Global Economy is likely to move in these fits and starts as we all figure out how to most safely and responsibly respond to the virus. Guy the data are pretty good and we need to think about that in the context of this session. And let me just repeat, nonmanufacturing is at 57. 1. It is a diffusion index. We have to be aware of that. Its a monthonmonth. It is a mechanical bounceback but it is strong. Joining us now, the president paul richard now joining us on the line. That is a very strong number. How does that factor into your thinking . Its a strong number, guy, but youve still got 17. 8 million unemployed in the u. S. My view on data as regards to earnings and data is still very cautious on anything that we see until the markets settle down and i dont think the data gets to any sense reliable until september. So i certainly welcome good data, but im always a little bit cautious about getting overwhelmed. Although i still continue to believe in this rally. I would note that a week ago, the market was concerned with the data testing 25,000 s p testing 3,000 and here we are, seven days later and weve even got the china media telling us to buy stocks. So i think the markets default is to try and cap this rally. And i think thats the issue. And i think were now seeing from a retail perspective almost a fomo analysis coming through and thats going to continue to very cautiously push markets higher into labor day. And thats when markets have got a wakeup call coming. Kaley so whats the upside catalyst here, paul . Were Getting Better economy data. Yes, weve gotten stimulus but we also have rallied so incredibly far. So what is going to be the driver that pushes us even higher . What the market is waking up to is theyve been so consumed by the covid numbers in the u. S. And the tristate that theyve woken up to the weekend to the fact that if you were to say the tristate, theres a lot of respect about the way the things are being managed the inconsistency in the u. S. Is a big issue. But when you look at the way europe and asia are managing covid, its a lot more consistent and you can see the rewards coming through in their equity markets and even to an extent in their currencies now. So i think the world is saying to the u. S. Look, youve got a problem in your Southern States but the rest of us are learning to live with covid and were very hopeful about a vaccine. There is reason to be constructive on risk. Guy you mentioned the wakeup call, the potentially could come after labor day. Lets talk about the genesis of that wakeup call. Is it simply going to happen because we start to see some of the stimulus bailing out of the system . If that is the case, is there also a growing concern or should we have a growing concern, the its that better data may mean we get less stimulus out of places like washington, d. C. . Paul prelabor day, youve got to clip it on july 31 where is this an Election Year . The republicans and democrats have a very tough negotiation ahead of them. I think its going to be the ones that go on the wire but theyll get it done and they have to and that takes us to labored. And post labored, the labor day and the risk is political. I dont want to ignore the underlying issue of covid because i do think a vaccine at least is some encouraging signs are going to be announced before we go into the winter but the big issue is for the market and i dont think needs to be priced until after september 1 is a possibility of a blue wave. The market is largely starting to price the fact that we have a change in president but i do not think theyre pricing a change in the senate and thats going to take a lot of work. But theres a point where the markets going to have to twining that risk but its probably not until after labor day when youve got 60 days until the election. Kaley lets pick up on that change. J. P. Morgan saying that a biden presidency may not be that bad for the market in that it could mean softer rhetoric. They see this as neutral, even slightly positive. So how big could the upset in the Financial Markets be even if we do get a biden presidency . Paul if you get a biden presidency that with the senates totally controlled by the republicans, this is a market event that the market can live with. Depending on who his cabinets going to be etc. Hes seen as more moderate and the markets can live with that. But if we were to see a blue wave then senate and the white house slip, the markets would seriously have a problem. But theres a lot of work to get to that point. But per your original question, assuming the senate stays as it is, i think the market can live with biden. Guy we just teased a little to china. As you alluded to at the top then chinese authorities are encouraging this rally state media talking about it being healthy. From a u. S. Investors point of view, how much attention should you be paying to what is happening there . Paul well, look, you know, and im from new zealand. Living in the u. S. , the u. S. Is verycentric in the way it looks at its investments. It is more natural to not invest in the u. S. But were realizing now that particularly if you continue to see a steady weakening in the dollar which is my expectation for the next six months, i think that opportunities with respect to particularly apec and then europe, particularly as this e. U. Recovery funds carry on as were seeing real unity in europe, Financial Advisors are saying there is a market out of the u. S. That can offer them a hedge. So very slowly i can see movement in that money. The problem is that europe has been tempting from investors for the u. S. A long time and tending to disappoint relative to the u. S. But this could be the turning point, particularly i think with the e. U. Recovery fund really gaining a tremendous amount of momentum. Kaley so paul, does that mean all of the money sitting on the sidelines right now, the record amount that is in money market funds, were starting to see some of that come so now does it go to places like china . Paul i think it is going to be very hard to talk people into putting their money outside of the u. S. But very slowly, you will see a small portion of that trading offshore and with that, youll start to see a continued slight deterioration in the value of the dollar. I continue to think that the dollar is going to be weaken but in a very steady manner. As we start to see movement of that money away from the u. S. Into asia and into europe. Guy the one thing that europe doesnt have, paul, is a lot of tag. Does that matter at this point . Would you be lightening up on tech . Paul i dont think investors are necessarily all that worried about it. If i could just change the question a little bit, the one thing thats not on the market would be an upset on brexit negotiations and i think that thats how i feel that the u. K. Is in a less advantageous position as they were as the e. U. Is looking a lot more united and working with merkel and then with macron is a key to that. I think the risk out there that the market has been talking about would be the brexit negotiations going poorly. Theres a lot of optimism. We need to be carele about that one. Its a relevant topic that the markets going to wake up to very quickly. Kaley all right, paul richards, thank you so much for joining us today. Ok. Coming up, new york entering phase 3, put without indoor dining. Were going to speak to the chairman and crowe of the larger Public Transit authority in the u. S. This is bloomberg. The u. S. Supreme court banned robocalls to mobile phones. It is part of the ruling, the court broaden the measure that contains the calls made to collect debt owed to the federal government. A federal court handed the trump Ban Administration a stunning defeat ruling that the oil pipeline must shut down by august 15. A crucial permit americanindian tribes have fought that pipeline project for years. President trump is preparing to issue executive orders on a wide range of topics. White house chief of staff meadows says it will cover immigration and prescription drugs prices. Meadows say it is important for the president to bring back from verseas. This is bloomberg. Kailey . Kailey thanks. As other parts of the u. S. Hastily roll back reopening plans, new york is taking one small step forward. They kicked off phase 3 today. That means nail salons, and tattoo parlors will open for the first time in months. Joining us is pat foye, m. T. A. Chairman and crowe. It is the largest Public Transit authority in the u. S. Pat, phase 3 today and ive look at the most recent data. Were back up to more than a million riders on the subway on a daily basis. But thats still down on 80 yearoveryear. How much material improvement is going to bring in traffic and ridership . Pat thanks for having me. We have about 1. 1 million customers on the subway, slightly over one million on buses. Thats a significant improvement from the depths of the pandemic but pales in significance to the 7. 6 million that we carry on average weekday prepandemic. Thats had a Significant Impact on our resources. Mayor de blasio saying it will dd about 50,000,000 commuters. We are well equipped to analyst hat handle that. We have 100 bus service that are operating at prepandemic 100 levels on subways. Weve added service on Commuter Rail and the Staten Island railway and were fully equipped. Were also disinfecting our cars, our subway stations, our subway cars, Commuter Rail cars and buses frequently during every 24hour period. Weve done everything we can to minimize the Public Health risk to our customers and to our employees. Guy mr. Foye, good morning. Guy johnson in london. Pat good morning, guy. Guy your revenue is downing and your costs are going up. How sort of money are you . Pat well look, i said it on Board Meeting a week or so ago that were in a financial fouralarm fire and i believe thats the case. We received 3. 8 billion plus in the federal government in the first round of coronavirus funding. The house of representatives has passed a bill that provides an the u. S. L 3. 9 billion senate has to act on return of its break. It is fundamental that we get that money. The mid mckinsey, which point of our revenue wash from fares and polls declines and also from declines in a package of dedicated taxes and subsidies at the legislatures given to us together with increased costs, disinfecting that i mentioned with the mid point would be 7. 7 billion in 2020. And obviously, the ridership increases which mckenzie took into account have helped but we are still 3. 9 billion short and that federal funding is desperately needed. Kailey so mr. Foye, with all of that in mind, are you going to have to cut spending and at what point do you have to consider layoffs, for example . Pat well, everything is on the table. Were looking at, first, is reducing nonpersonnel expense. Were going through every consulting contract and contract that doesnt involve personnel. Weve cut 100 million out of our overtime already in tweth. I believe theres more than can be reduced. So were looking at those expenses as a firstorder priority. And we will be reporting to the board and the public on that in a weeks ahead. Guy not everything is on the table, is it . You are not allowed to declare bankruptcy. Is that an advantage or a disadvantage in this situation . Pat theres no scenario in which the m. T. A. Would need to declare bankruptcy, i believe. State law doesnt allow us to do that. Were an Investment Grade credit. Were in cob stant bylaw with the Credit Rating agencies and our bond holders. We will get through this. There will be difficult times. And the m. T. A. Has faced difficult times before following 9 11, following super sandy, etc. But were going to do whatever it takes. Everythings on the table. Were going to do whatever it takes for sure that the m. T. A. Is able to provide Transportation Services for new york city and the region for years and decades to come. Kailey mr. Foye, even if you get through this crisis, how are you thinking about the m. T. A. s role in whats going to be the new normal . When more people are living outside the city, working at home, not as many people commuting or living inside metropolitan areas . Does that mean fewer trains . What does that mean structurally for the m. T. A. . Pat look, ill note this. Our rails have led the entry of performance on subways and buses. Thats not surprising because a significant portion of those workforces from westchester, from long island, from connecticut can work at home and have taken advantage of large firms which have made that an option for white collar workers. The m. T. A. Have done the same thing with respect to many of our management staff. So we have to take into account first. The m. T. A. s role in the recovery of new york city and the new york City Regional economy is going to be fundamental. 70 of our customers, for instance, say that the subway stations are cars have never been cleaner. People are wearing a mask. Cuomosws from Governor Executive Order in. 2021 and 2022, we will take into account to make mass transit as a popular and acceptable and satisfactory to our customers as we can both in terms of service but in terms of minimize being Public Health risk. And we will obviously right size our operations if a significant portion of our riders dont come back. Guy given that, given what you just said and following up on kaileys question though, do you think you are going to shift the way you invest in the future . Investing money is obviously very difficult to find right now but if we start to see the patent shifting toward the suburbs versus the center of the region, do you think thats going to change the way you invest . Pat well, no. Look, if you look at our ridership right now, were moving a million 1. 1 million on subways. One million on buses. The number carried by the Commuter Rails is obviously a fraction of that. And thats a fraction of what they carried on a typical day prepandemic. So the locust and the focus, most of the passengers and most of the Capital Investment capital of the m. T. A. Is dedicated to subways and buses because we carry way more passengers there. The Commuter Rails with fundamental, so are busers. We passed a 51. 5 billion historic capital plan about a year ago. Obviously the capital plan will be affected by the pandemic in what is that well see over the months and quarters to come. Well invest where our passengers are and we will focus on our passengers needs and our customers needs. Guy pat foye, m. T. A. Chairman and c. E. O. We greatly appreciate your time today. Thank you very much. This is bloomberg. Is bloomberg. Kaileym guy johnson with leinz in new york. Our stock of the hour. A little m a in focus. Warren buffett deploying a little bit of money. I say a little bit of money, its a lot of money but its a little bit for him. The company is buying Dominion Energy for 10 billion. Bloombergs scarlet fu has more. Scarlet i love how you put it. Its a little bit of money. A lot of money but a little it bit for him. Hes known for his ability to snuff out good deals when everyone else is holding their nose. He is on Dominion Energy just as it shifts away from natural gas and turns more inwards to focus on becoming a pure place state regulated utility. Dominion and its partner duke energy are scrapping their Atlantic Coast pipeline because of ongoing postponements and cost overruns. This is the biggest deal in four years. Im not sure it qualifies as elephant size. You talk about this 10 billion valuations. Berkshire is sell shelling out 4 billion in cash and assuming cash lion of dominions debt and it does move the needle on birk berkshires revenue holding. Only 43 of its profits in those sectors and in the 2019 report, buffett called energy one of the lead dogs of its noninsurance business. Railroad and energy, burlington have a bigger impact on berkshires bottom line. Energy, 8. 1 of revenue but 14. 4 of its profit. So to the rest of the market, guy, this is confirmation that the Energy Sector is june valued. Berkshire striking when Natural Gas Prices is bumping on to the bottom. Still kind of in that range from last month. Guy . Guy scarlet, thank you very much indeed. Coming up, states that have reopened. Well talk about that next. This is bloomberg. Guy from london, im guy johnson with kailey leinz in new york. This is bloomberg markets. So confirmed cases of the United States now standing at nearly 2. 9 million. Were just getting the data coming through from florida. The cases rising 3. 2 as the previous sevenday average to 5. 1 . So thats good news. Joining us now to discuss some more on what is happening here, dr. Howard koh, former assistant secretary for healthin the obama administration. He is currently a professor at harvard. Professor, thanks for your time today. What we are seeing at the moment is the number of cases in the United States rising quite sharply. Yet at the same time, the number of deaths also