Taking a break yesterday, but we have apple climbing again. Investors want in on this defensive and growthy tech stop. Facebook up 4. 7 after facebook and twitter both blocked President Trump, a video on covid misinformation. Facebook getting a bounce on that considering they had not taken a strong action in the past, something some investors wanted to see. Making it interesting, when we take a look at the vix on the nasdaq 100, it is higher. That tells you going into the payrolls report or some expectation volatility tomorrow could pop. David stocks may not be moving much yet, but there is action on the bond side. My question is how low can the 10 year yield go. We are well into negative territory on the real yield. Abigail this is a great question. We have had this rally for stocks, not just out of the march lows, but more recently as the nasdaq has been carving out alltime highs. Over the last five weeks, bonds have been rallying. A very persistent rally in stocks and bonds. Many folks have been saying the rally in bonds has everything to do with the fed, but since june 8 the fed Balance Sheet has been flatlining, even down a little bit. You have bonds rallying. That tells you some investors are cautious. They are hedging the risk asset portfolio when you see bonds and stocks rally over a longer period of time, it tells you one side is more likely to be right. Tomorrows payrolls report might be one piece of the puzzle, and then the stimulus deal is probably the bigger piece. When does it come through and what are the specifics . David i cannot let you go without asking about gold. Gold went over 2000. What is going on with gold . Abigail gold has been helped out by the weak dollar. The dollar since the march high has been a huge downtrend, and more recently it has steepened. There are signs the dollar may start to strengthen, but gold has been on a tear. It is doing something it did in 2011. It is fairly overbought. It is 30 or more percent over its 200 day moving average. That is typically not sustainable. To 80 , bold went 70 above its 200 day average. This rally may just be starting. Silver technicals suggested may start to cool off. We are looking at these precious metals, the gold and silver bulls can get so excited about the situation. They take it longer and further than you think. At some point did michael off. David thank you so much abigail at some point it might cool off. David lawmakers trying to bridge the gap between republicans and democrats over possible fourth round of stimulus. We welcome senator Chuck Grassley of iowa, chairman of the Senate Finance committee. Always a pleasure to have you with us. Give us your sense of where we are. We have a sense there is some narrowing gap but there is still a ways to go. Sen. Grassley long ways to go. We do not have an agreement on is six figure, which weeks ago is 3. 5 trillion. We table to build 10 days ago at 1 trillion. There has to be some agreement on what we will spend before you get into details. They are going through the details now. All of this stuff is going on at one time. Report onime i had a how Steve Mnuchin and metals were making out with Chuck Schumer and nancy pelosi was late yesterday afternoon. I presume they will reconvene today and i would get a report about 1 00, and by the way, you say i am involved in it, i am involved in it, but there only those four people at the table. , maybe get a report after 2 00 i could tell people more, but right now i think the big holdup is the 600 versus the 200 we have in our bill for the federal enhancement of state unemployment compensation. Concerned, am democrats need to start compromising. As of yesterday, they had not moved off of the 3 trillion figure. Thatkeep saying republicans are not compromising. We have something out there and we are trying to talk to them. Compromise is not onesided. We are working for the american people. We have to deliver. David one of the many reasons we love having you on is youve been through a fair number of these before. Is this the standard par for the course in washington . You take it down to the last second and there is a deal made, or do have a sense this may be in trouble . Markets think therell be a deal within the next week or two. Sen. Grassley i think there will be, but what i do not know is whether or not in the back of the minds of Chuck Schumer and nancy pelosi, if they away with doing nothing, will republicans get blamed for it. If they were certain republicans would get blamed for it, then i do not know whether we would get a deal, because they want to use this issue to win the presidency. That is the big game. Of course, what we are trying to do now as republicans is what we did in march when we passed the first cares act. You can call it stimulus, whatever you want to call it. We did it unanimously. Can you believe that . If there were hundred people there, it was 1000. There was not anybody against it. Why cant we do that again now . It is the same people hurting. It is the same economy the government shut down for the first time in the 240 year history of our country, it is our responsibility to open it up. We had unanimous consent to do that, unanimous consent to fight the virus with the same bill, unanimous consent to help the people who were hurting because they are unemployed, because what the government does, and it has taken a little bit longer. We are planning. This is what this debate is all about. Why cant it be done unanimously . How much is a political calculation, how much is it the democrats that you republicans cannot afford not to have a bill. Look at your constituents, are they saying whatever you have to do we have to get some help . Sen. Grassley if you say republicans have to have a bill, then you are saying republicans should not have a position, we ought to go along with nancy pelosi. This business of legislating is the art of compromise. David youre not getting much compromise from the other side. Let me ask you one specific thing. Pension reform. Is that going to be and whatever bill comes out . Sen. Grassley not unless poulos he negotiates with me. Notwants to get in unless nancy pelosi negotiates with me. She wants to get in just a bailout. We have bailed up pensions before. My approach, and senator alexander is working with me, if we could get democrats to sit down, we would reach a compromise. If we bailout without the reforms, five to 10 years we will be back with another bailout. The reason these multi employer pension systems are in bad shape have note the trustees run in a businesslike manner. We have to put some responsibility on the trustees and people benefiting from the pensions are going to abdicate in a little bit. Taxpayers are going to have to kick in, the employers will have to kick in more. At the same time, we will also help the government pension guarantee program because it is going to go broke in 2025. We need to reform these pensions and have the people that run them do it in a businesslike way. That is what our bill is all about. It is taxpayers helping, it is the employers kicking in a little bit more, it is the retirees who, if they do not do anything and going to the government pension program, they are going to get there pensions because the government does not guarantee up to what most of these people are getting. They have to realize that kicking in 6 per 7 out of the pension now is better than getting cut 75,000. If we do what nancy pelosi wants to do, we will just bailout the whole system, throw more tax money after it, and then five to 10 years from now you will do it again. David as you know so well, the constitution anticipate legislation will begin in congress and will make its way to the other end of pennsylvania avenue. Given what is going on and the refusal of democrats to compromise number to reach a compromise, are you in favor of President Trump taking it into its into his own hands by executive order and doing things like Unemployment Insurance or the suspension of the moratorium on evictions. Sen. Grassley before i answer that question, i have to tell you how i respond to a president , i appreciate he is making a difference in washington, d. C. And i like his leadership and most of his programs. His major problem is he says im going to issue an executive order. The president would be better off if he would say i am going to consult with my lawyers and see what i can do under the constitution and under existing law, and if i have the authority to do it, i will do what congress can do. He cannot just assume because he is president of the United States he can do anything he wants to. Questionnswer to your is along the lines of what i just said. I do not know whether he has the authority to do it, but if he has the authority to do it he ought to do it. David thank you so much. Was a pleasure having you with us. That is senator Chuck Grassley, republican of iowa. Coming up, former fbi director louis freeh is here to talk about his new role and howie is advising and how he is advising clients to navigate the difficult National Security between the United States and china. Power onalance of Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. We turned to Karina Mitchell for bloomberg first word news. Hasna the bank of england raised the prospect of cutting rates below zero but only after the crisis has passed. Bloomberg spoke with andrew bailey. Planning to use them at the moment. We prefer to look at quantitative easing and Forward Guidance as tools, but i would make the point we will go on looking at the toolbox. Nothing is fixed forever. Karina you can catch more of our interview with governor bailey on the bloomberg terminal, bloomberg. Com, and throughout the day on Bloomberg Television. The white house and Congressional Democrats are running up against a selfimposed friday deadline. They promised to strike a deal on a new virus relief package, but despite some progress there is been little sign they were able to resolve fundamental differences. White house chief of staff mark meadows has warned that if there is no compromise soon, President Trump moved to restore Supplemental Benefits and a moratorium on evictions. Will extend beyond tictoc. Mike pompeo urged American Companies to bar chinese applications from their app stores. He says those apps are significant threat to americans data. 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 Karina Mitchell. This is bloomberg. David . David President Trump has made protecting u. S. National security interest a priority of his administration. We welcome someone who is an expert in this area. Louis freeh. He served as the director of the fbi under president clinton and he is the founder of Freeh Group International solutions, which lisa lee merged into alex part which recently merged into Alex Partners. Congratulations on your deal. Lets start with Alex Partners. Explain what this deal is and how it changes your life. Louis thanks very much. Our group was fairly small, about 24 people specializing in complex investigations doing a lot of compliance work for big Global Companies like walmart. We have represented daimler, erickson. Weve done a lot of work in the cybersecurity space. We also do a lot of problemsolving. One of the things we did was oversee the settlement between bp oil and the five attorney generals, the department of justice, the epa, which was an 18. 5 million settlement. For a long time, punching above our weight, the merger with Alex Partners is a tremendous opportunity for everybody. Are 2500 they are a 2500 person enterprise. They have offices overseas. We have had a couple of overseas offices and a lot of port engagement. The platform is great for us. Well enhance their compliance and their investigations and all of the services they bring, not just through structuring into business improvement, but financial forensics will give a great set of services for our client. Of us,for an awful lot the coronavirus pandemic has changed our lives. Has it changed what you do, your professional life . Do you have a lot of retention to handle things including compliance coming out of the pandemic . Louis is a good question. Weve been busier in the last several months then before. Partners much busier in the restructuring area. Coronavirus,se the unfortunately, besides all of the human suffering it has caused, has impacted Large Companies and Small Businesses, creating a lotto productivity , requiringoductivity internal controls to be strengthened, and the compliance Big Companies use, companies as well as small companies. Test during an economic downturn we are having now. This raises the risks we address, both previously, and alixpartners. David i mentioned the issues around china, particular because of tiktok, cybersecurity issues. To what extent do your corporate andnts have to look at data access of Chinese Companies to data. How much of your business has caught up with that and how you protect data . Louis a lot of what we do in terms of advising boards and ceos, particularly Global Operating companies about securing and protecting data is a universal description. I do not think it is particularly specific anymore to the prc or the Russian Federation or many other countries. If you remember when the economic espionage act was passed, i was in the department of justice then, 1996, the intent of that statute, which is an underutilized statute, unlike the farm growth practices act, much less activity in terms of enforcement. The act the idea of the act was to protect companies, not just American Companies, but companies to make sure they could preserve trade secrets, which prior to that act were only protected under state statutes. Not prcce to clients is china specific. Do with the firewalls and the proactive things, and the training and awareness of people inside the wire about securing and protecting data. From europe and other places around the world, the privacy requirements, the data restrictions have become much more enhanced. General ands pretty pretty prescriptive to everyone. David thank you so much to former fbi director louis freeh. Well be able to talk to him more in the second hour of balance of power about his fascinating work. In the meantime, we will talk later this hour with Donna Shalala of florida about what is going on with coronavirus there. Last time we talk to her she said it was totally out of control. We will get an update. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. President trump has been speaking at the white house. Before he got on the helicopter he spoke to camera. He said he is hopeful we may have a vaccine for the election november 3. That his team is doing a great job. He also said he is seriously considering the executive order if they do not come up with a compromise on the fourth round of stimulus. That is President Trump speaking a few moments ago at the white house. It is time for the stock of the hour. It is Cloud Computing provider fastly. It has flourished in the coronavirus that is having trouble at the moment. Scarlet fu is here to explain. Scarlet the stock gapping lower at the open, falling as much as 21 . It revealed its biggest customer is tiktok, that is clearly a double edged storm. The app made up 12 of fastlys revenue. The backdrop is President Trump is targeting tiktok, he wants to ban it or sell it to microsoft by september 15. This poses a risk to tiktoks thirdquarter guidance. David exactly what does fastly do . Scarlet it calls itself a content delivery provider, but it basically helped speed up tiktok or whatever app or website you are accessing and load everything faster. It does that by cashing data on servers around the world. What that means is it was perfectly positioned during the cobit lockdown and investors pile into the stock. Fastly started the year around 20 a share and got to almost 120 this week. The companies that have been reporting have been reluctant to offer Forward Guidance because they have little visibility. Actually fastly was able to give guidance, but they admit the outlook assumes the status quo for tiktok, but people are not quite sure it can deliver. The analyst reaction to the result is they think it is too costly given how any questions still remain around the outlook. David it has risen an awful lot. It still has a ways to fall. Many thanks to scarlet fu. Coming up next, we will talk with congresswoman Donna Shalala of florida. This is balance of power on bloomberg. David this is balance of power on Bloomberg Television and radio. Im david westin. For bloomberg first word news, we go to Karina Mitchell. Karina there is a sign the labor market may be improving. Applications for on Employment Benefits fell to the lowest since the pandemic started. Million,clined to 1. 2 200,000 less than the median forecast. So with claims over a million, the job market