The cloud numbers disappointed, if you can believe it they disappointed with 47 yearoveryear growth. Growth is slowing so investors want it perfect. Twitter is popping sharply higher. Up 8. 5 . There ad revenue number slid but what impressed investors is daily user growth, record for the second time in a row, up 34 in the june quarter after growing 24 in the march quarter , telling you that folks in the pandemic want news and entertainment. David fascinating. You mentioned earnings in the tech sector. Lets expand it broader. We are well into the earnings season. You think the markets are encouraged, discouraged, or is it coming and where they thought . Abigail it is neutral. Netflix was a decent surprise. Itself almost a nonevent in some ways. They did put up a gap profit which allows them to be eligible for the s p 500. From a broader standpoint, you were mentioning those jobless claims. Since march, jobless claims have been coming down until this week. During that time period of the s p 500 has been climbing. Make,ek trend does not but if we should see another week or two where jobless claims numbers come in a disappointing way, it could connect some investors and traders with what a few you economists are talking about, that the trickle through effective the pandemic could take much longer to work through the economy and perhaps depressed and already depressed jobs picture, which in turn could cost volatility for stocks. Not happening today, but stocks did react to the downside. Something to keep in mind. David one data point but want to Pay Attention to. Thank you to Abigail Doolittle for that report on the market. Equities have been pushing up despite today overall, although there is some volatility. I would say the bond market has been relatively boring. I hope our next guest will not be offended by that. He is bob michele, head of Global Fixed Income for jp morgan asset management. Welcome. Is it fair to say the bond market is pretty boring . , last look at the 10 year week it varied very little, now just a little below 60 basis points. Bob i am a career bond investor, i love boring. To me that is nirvana. That is what we have. I think the question is why are we here. It is because we have never seen the Central Banks take such control of the bond market as we are seeing today. Rate,ting the fed funds the fed controls the front end of the market, but kiwi they can control out the curve with the ecb, they are buying Investment Grade credit. The fed is buying securitized assets and some crossover. Ighyield securities yields are anything the Central Banks want them to be. David i understand why you as a bond investor would be happy with boring. At the same time, sometimes we like to look at the bond market is an indicator of where the economy is. Have we lost that indicator . As you suggest, maybe the fed is determining where the deals are. We have significant negative. Eal yield on the u. S. 10 year is that telling us nothing much about the economy but rather about the fed . Bob it is telling us a number of things. It is telling us through financial repression the fit is bringing Government Bond yields down to a negative real yield basis to make the cost of the recovery affordable for the federal government. I think that is clear. It is also telling us that investors are not fighting that. We are expecting a period of low inflation, if not disinflation. There is a lot of Spare Capacity in the system, and when you look at the mountain of debt being created across all levels of government, across businesses and households, that is an enormous headwind to inflation going forward. As a bond investor you still want yield. Where you look for yield given the fact that they are so low . Bob right now there are a lot of investors concerned about some of the credit markets because there is a lot of borrowing that has gone into things like cruise lines, airlines, hotels, amusement parks, theater operators, retailers your there is some expectations that default could peek around 10 . The other way to look at it is 90 of the highyield market will not default. When you include it in the investmentgrade bond market, you come out with Something Like default rates across all the corporate borrowing that is occurring around 1 to 2 . There is a lot to dig through. The reality is there are 330 Million People in the u. S. They are generating some sort of spending. We heard from abigail a few minutes ago that a lot of it is going into entertainment. Those are the things you have to roll up your sleeves and look for. Try to find the value. David to what extent does the bond market sensing what is going on with covid19 . We thought a couple of weeks ago maybe we are getting on top of it. It seems to be coming back in several states. The bond yields reflect that . Bob i do not think. We are getting pretty close to the point where that could be the case, and that could bring the 10 year treasury yield down lower. We talked about how it has fallen. 6 and been rocksteady. If there is a real risk off i do not think right now the bond market is all that worried about covid19. I think we have seen the infection rate flatten out. The potential is there for much lower Government Bond yields. The 60 40t is left of investment. You had your Equity Investment with some bonds. If the fed is sitting on the yield on the bonds, is that still reasonable hedge against the equities, which had been pushing up significantly . Bob that is a good question. It is what clients have been asking us nonstop over the last couple weeks. When i talked about the bond market, i have always thought it should protect against a 10 decline in equity prices. It should go up around 10 , which means if you look at the bloomberg aggregate bond index, it needs to fall hundred 50 basis points. The yield on that index is 120 basis points. That is not in the cards. I am thinking of the bond market as a traditional equity hedge or risk hedge is not there. What you are looking at is a higheryielding liquidity market. Higheryielding money market, so to speak. David at the same time, as we look at remarkable issuance from governments around the world, and certainly the United States government, there seems to be no end to the appetite. What is driving the appetite given that yields are so low . Bob the primary driver are the Central Bank Balance sheets. There is no way we and the bond market could absorb the trillions of dollars of issuance that would come out of federal governments globally. I always have been saying we are coinvesting with the Central Banks at this point in the cycle. I think that continues. There is some appetite to derisk. Cash and some Equity Holdings by sponsorsdings that have longterm liabilities. They are doing some of that. It is mostly just coinvesting with the Central Banks is absorbing a lot of the supply. David thank you so very much for being with us. That is bob michele, jp morgan asset management. Coming up next, we will talk with shelley more capital, the senator from West Virginia, about what the government needs to do to help the economy. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Financial markets are waiting with baited breath as to what comes out of congress with more fiscal stimulus. Something we should know in the next week or two. We bring in someone who will help make that decision, Shelley Moore capito, the senator from West Virginia. Give us a sense of where we are. We have jobless numbers today that were disappointing in that the weekly claims went up for the First Time Since march. Does that add more impetus for the need to have more fiscal stimulus . Sen. Capito i did see those numbers and i was hoping they would go down. I think we have seen with this second wave some reclosing of certain facilities, leading to the higher unemployment. Here is where i think we have done the right thing by waiting a couple of months. I think weve been able to assess where we are, who else needs assistance, who has fallen through the cracks. I think we will target this next recovery package to those kinds of concerns, whether it is schools, whether is more vaccine development, or whether it is Small Businesses still struggling and people still without a job. I feel optimistic we can get there, but seeing what has happened over the last several weeks certainly helps us make those targeted assistance much more meaningful. , congress hassay already done an awful lot, but in doing it quickly it had to be a blanket approach. There was no alternative. You cannot get too subtle. Now that youve had the experience, what are the targets . Talk about small business. Is it the size of the business . How can you figure out which businesses need the help and which do not need it as badly. Sen. Capito what we will probably be looking at is a p program where we will probably lower the number of eligible employers to 300 employees are under, and i think we should be asking them to demonstrate their loss. Lets not blanket approach it. Lets make sure we are pinpointing any kind of loan forgiveness with a successful ppp program to those businesses who are having a severe downturn or who are unable to reopen. That is one of the ways. Small business is the backbone of the country but certainly of a smaller state like mine, ive talked to many Small Businesses that cannot go full bore and they need more assistance. Ofid there is also a lot discussion about that supplemental Unemployment Insurance due to expire at the end of next week. 600 a week. There is some concern that mightve been too big as a flat amount across the country. There are different costs of living. What you think is the right answer on that . Sen. Capito that was a four Month Program we put into practice. Every week would be an extra 600. It resulted in a lot of people making more money than they made in their job. It has provided a disincentive for many people to go back to work. Our smaller employers, our Small Businesses, our restaurants and others are having trouble getting people back. A Small Manufacturer might have the same issue. Im not in favor of extending the 600 a week because of that incentive we are seeing across the country. I do not think we can drop people off of a cliff. I think gradual work down, or working with the Unemployment Insurance commissioners across the state to make sure you will not make any more money on unemployment that he would at your job. We have to get people who are able to go back to work to make sure they do go back to work and are not incentivized by programs we create to stay on unemployment. Schools. U also mention as we are mindful of the need to get back to school in some form, whether virtual or literally in the classroom. What kind of support is required for the School System . That will cost a lot of money for schools across the country to adapt to a social distancing world. Sen. Capito the first bill senator mcconnell is putting forward has approximately 105 billion for schools. K12, and another 5 billion for the governors to make those determinations. As for what i see in the local community, the schools are not set up to be social distant, theyre not set up to be cleaned properly and as frequently and as deeply as they will need to do. We also have the issue with broadband. We have a lot of our students who are unconnected. Can we fix that in 30 to 60 days . Probably not. We can help our schools create portable hotspots, equipment the students can take home with them. I personally think we have to get the schools open. This is where we will get back to life as normal by having our students in place. At the college and university level, you will see a combination of in class virtual, and at that point we have to impress upon the student population it is important to maintain smart living. Our bars and stuff, that is a problem because College Students have a tendency to congregate there and we want to make sure they are being careful. At least i did when i was in college. I will say that. David having children who now or have been in college, it is hard to control them when they are in college. No question. Youing at West Virginia, say does not necessarily prepared for social distancing. Is it prepared for Remote Learning . What will happen in West Virginia with Public Schools . Sen. Capito it has been a hodgepodge. Hours are run by the county. Some School Systems have been able to move forward and are prepared. Others, particularly in our lower income areas struggled and basically threw up their hands and said we will call it a day on the end of school and start back in september. For other issues that i think are important enough to overlook about getting students into the classroom, many times the teacher is an adult who can oversee the child in other ways besides cognitive learning. Their emotional wellbeing, whether they are getting nutrition or not. Whether their parents can go back to work is another big element for this. I think the physical reopening of our schools in the safest way possible we have to have that as our and game, and hopefully sooner our end game, and hopefully sooner than later. David from your vantage point, when we will have a bill . Will it be one bill or two . Yesterday there were reports we do with unemployment turns right away. Sen. Capito i think if that were the case, it is because the cutoff date is july 31 and we might not get the bill done. I am hoping to have it fully completed by august 7 and on the president s desk. We have a lot of work to do. I think we will see something definitive this afternoon from republicans, and then we will get the reactions. I know secretary mnuchin and chief of staff meadows were making with Speaker Pelosi and the democrat leader here, Chuck Schumer to try to get some kind of compromise language going. We are a long way, but we have worked well together on this particular aspect, and i hope it it is in the political arena, but i hope it does not get so bogged down we cannot complete our task. There are many people hurting who have High Expectations for us. David there are so many people hurting and the question is when will they not be hurting . The virus will determine that. When congress came out with 2 trillion help before, a lot of us thought that will do it because by the time that expires we will have to get the economy going. Will we have this discussion again and again until there is a vaccine . Sen. Capito i am with you. I certainly hope not. I hope we are able to contain and the few hotspots we have we target resources there. That makes perfect sense. We have counties in our state that have singledigit cases that are now all resolved. There is no reason we cannot move forward in a safeway in those areas across the country. I think that is what the governors are advocating and doing. At the same time, we have to make sure the Development Comes as quickly as we are hoping. I heard it could be as soon as january 1. That would be an amazing thing, and maybe more than one. I think that will go a long way. At the same time, we still have to have testing. I think if youve been in a gathering of any kind of people that are socially distant, people are hungry for human interaction. I think we need to loosen the reins so we can do that in the areas where it has proven to be contained. David at the same time, it does not seem to be working in places like florida and texas and california. Did we loosen the reins too much . Sen. Capito those are the determinations the governors are making. Our own governor, we had a hotspot in morgantown and other parts of our state. The governor says you cannot be in a place with more than 25 people. It had been 100. We will close the bars in morgantown because that is where we think a lot of this is being passed on. I think that is what the governors are within their realm to be able to do. We should be following the instructions of Wearing Masks and other things. , we are get the vaccine obviously treating this a lot better than we were before because of the lower hospitalizations, but i still think it is a very looming, and it is on everybodys mind, as it should be. David that is for sure. Thank you so much. Appreciate you being with us. That is senator Shelley Moore capito of West Virginia. Coming up, well be talking with the leader of the largest u. S. Business organization as well as the largest union. That is tom donohue, head of the u. S. Chamber of commerce, and richard trumka, head of the aflcio. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Time for the stock of the hour. It is twitter. Shares are up after it reported secondquarter earnings. Kailey leinz is here for a full report. It is an interesting story for twitter. Ist have the stock up 7 about user growth. They added 20 million typically active users, bringing the total to 186 million, jump of 34 year on year. They said that was primarily driven by external factors like the pandemic. That is well and good, but you have to consider the boost might be temporary. Those additional users are not translating to topline growth. Secondquarter revenue fell 19 . It came in well below analyst expectations, and that is because Advertising Sales fell 23 in the quarter. 25 in the u. S. Market specifically. That is happening as the Companies Pull back on their advertising spending as they try to whether the pandemic. Twitter has to combat this. The company says it is looking at additional business lines to compensate the weaker advertising trend including possible offerings and payrolls. Even outside the context of the pandemic, you have to consider another reason twitter may want to do this is just competition. They are competing with facebook , with snap, with instagram for advertising dollars. David . David thanks for that report on twitter. Coming up, we will talk with tom donohue, head of the u. S. Chamber of commerce. We will ask why he was suing the Trump Administration. I will give you a head. It has to do with visas. Yes i will give you a hint. It has to do with visas. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. It is time for first word news. For that we go to Mark Crumpton. Head of the World Health Organization is slamming secretary of state mike pompeo for what he calls untrue and unacceptable allegations. Comments came in response to reports that secretary pompeo blamed the Health Agency chief and said that he was bought by china. The Trump Administration been critical of the who response to the coronavirus efforts. Has ordered the United States to withdraw from the agency. The white house has backed off of its demand for a payroll tax holiday. Steven mnuchin says it will not be in the Coronavirus Relief bill being put together by the administration and senate republicans. That could make it easier to get the measure passed. On 11expected to include benefits for millions of americans. Michael cohen is getting out of prison. A federal judge claimed the government retaliated against him for writing a book critical of President Trump. Cohen soon, saying the government was violating his First Amendment right. He was one year into a threeyear prison sentence after pleading guilty to finance charges and other crimes. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. David thanks so much, mark. When the Trump Administration abruptly stopped visa programs for employment related visas, americans protested. Now the chamber of commerce joined by the National Retail federation, has sued the administration to stop throwing out those visas. We welcome the ceo of the u. S. Chamber of commerce, tom donohue. Give us a sense of what is at stake here in this lawsuit. Tom thank you very much, david. Problemnot a firsttime in terms of dealing with this administration on the question of immigration. Lawsuitreason for this is we have got to overturn the sweeping and unlawful immigration restrictions that basically put up a sign to people around the world, not welcome here. Engineers, executives, i. T. Nurses, youtors, think about the talent we need to drive this economy, and you know we have to challenge this action by the administration. We had to do the same thing with now grownup,ren, wonderful workers, and we have to do the same thing when they tried to shut down people coming to our colleges, which would put a lot of them at risk. This one is critical. The president has the right to make adjustments in immigration issues, but he doesnt have the right to eliminate the action to the congress in welcoming these people to the u. S. When we need them. There have been various situations in which you have agreed on President Trump on his actions, particularly on economic policy. What has gone wrong here . The president says he wants jobs. A lot of these people help u. S. Growth. Why does he want to keep them out now, is it because of covid19 . Tom no. First of all, there are two issues. You need for economic growth, skilled people and investment of money. We have plenty of investment in cash in the private sector. We need skilled people. Right before the pandemic, we were at the lowest unemployment in america in 65 years. We still need all of those people, those skilled people. The chamber was founded more than 100 years ago. Things,founded for two to represent the American Business community, and to help our government. For all my time here, 23 years, we look for ways to help our government. We have helped of this government on taxes, as you indicated, challenges around the world, getting an agreement done , a lot of things that need attention. I was on the president S Advisory Group on employment with his daughter. We dont have anger with the administration. Our deal is, when you are doing support, we are going to support it as hard as we can. But when you are doing something that we cannot support, we are going to take you on. We never make it personal, never talk about the president , we talk about the administration. Often come upte because it is one way to get clarity, not only for the business community, but the government. I would simply say that what we have done for many years, we will continue to do, and that is support any government activity that helps our country, creates jobs, and strengthens our economy. And we will challenge those issues that seem to go the other way. David lets talk about some government activity that is pending right now, the socalled fourth round of stimulus. One issue is supplemental Unemployment Insurance, 600 a week that is a turn people from going back to work. What is the experience of your members with respect to this supplemental Unemployment Insurance . If not 600, what should it be . It onirst of all, you hit the head as you ended the question. If you are going to pay Unemployed People a significant they would make if they went back to work, that people are not going to go back to work. Arehe same time, people legitimately frightened because of all the press on this thing. We need to assure our workers and we need to listen to the Health Officials and ensure our fellow citizens that we are doing everything we can to control this pandemic. We were the guys that came out with a major proposal that everybody starts Wearing Masks, we contacted every governor in the country, put our muscle behind that. To really make these people comfortable. Then we can go out and look at this fourth issue. Here is what we are looking for. We want to keep support where it is needed. On unemployment for many people is too high. They will find a rational number. Will they cut it in half . What will they do . Not sure. I just got on your news station that the argument about whether we ought to deal with Social Security taxes, that is off the table. So i think we have a little more room here to work on this. We are very concerned that we keepthe things we need to the health care system, the education system, and the percolating systems so we can get this economy back going. I will tell you that i am beginning to feel that we are inoculations,to coming closer to therapeutics, which are medicines that you can , we areyou are sick coming closer to people putting on masks, keeping distancing. Young people have learned it can be them, and they are carriers. I feel like we are doing better. svid from your lips to god ear. Always a pleasure to have you on, tom donohue, ceo of the u. S. Chamber of commerce. Coming up, we will speak to richard trumka, the head of the aflcio, about what he thinks we need to get out of congress. This is balance of power on Bloomberg Television and radio. F power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. The economy going again depends critically on workers being comfortable with going back into the workplace. Yesterday, we spoke with labor secretary Eugene Scalia and ask why we should not have a temporary standard from osha to make sure that workers are protected in the workplace. Osha have not thought an will was necessary. We do have enforcement tools at our disposal, brought several cases against companies that are not taking measures, but what we have done is provide guidance on safety to workers, employers through guidance. Joined now by somebody who really thinks we need that emergency temporary standard, richard trumka, president of the aflcio. Welcome back. Respond to secretaries korea. He says he has the mechanisms he needs, is bringing in enforcement actions. He doesnt need a special rule for covid. Richard he is wrong for two or three reasons. If he has the standard, he has not used them. There have been over 5000 complaints on the covid19 standards, and he has only issued one violation. He has not done anything to force companies who do not use proper ppe. We need that standard. By the way, Companies Want that standard. They want to know what is required of them, not suggestions, which is what the secretary has been making. They need to know what is required of them. What ppe they should get, how they should clean their places, the type of sanitation rules they do. Everybody wins when they do that if you open up a business and to protect the workers, the business will close down again, guaranteed. This standard would help us. God bless virginia. They passed the standard at the state level, and more states are looking at it because they know it is necessary and they know awol during this entire pandemic. David lets go to capitol hill now and the socalled fourth round of stimulus. We had the heroes act passed 69 days ago, and we are getting down to the wire on the supplemental Unemployment Insurance. What do we need out of congress in the next week or so . Richard first of all, they have to pass the heroes act. Would extend Unemployment Insurance, including the extra 600. By the way, if they dont act tomorrow, there will be a gap in that money. Expire that extra 600 would be disaster for ui recipients who would have to drastically cut their spending, and for the economy, which is being held upload by that spending. We estimate it would cost more than 5 million jobs over the next year if they let that expire. In addition to that, the heroes act would also extend, as i said, Unemployment Insurance, would provide help for state and local governments. Local governments are struggling right now with opening up schools. They had to do it in a certain way, you have to have social distancing, and that means they need additional space, guidance. They are not getting that and i dont have the funds to do it. This bill would give them that help. It would also bolster the postal service, aviation industry, keep workers on the payroll and ensure health care and pensions. Millions of workers are losing their health care and pensions, which were in crisis before the pandemic, are really in crisis now because of the pandemic. , 34 milliontion some people rely on that for their income retirement. On the supplemental Unemployment Insurance, does it 600 . O be pretty much everyone agrees that there has to be something but 600 is too much. There is a report that says that 600 a week says a large portion of people are actually getting paid more on unemployment than before. Richard so what . That is a good thing. They can keep the economy going more. That is what that extra 600 has done. They spend it and create demand. It keeps the economy afloat. In that was not spending, if they did not have that 600, we would lose about 5 million jobs in the next year. That is why it so important. The argument that it is a disincentive to work, that is simply ridiculous. There are 14 million more unemployed workers than there are job openings right now. That means millions will remain jobless no matter what they do. If we do not extend the 600, it will actually add to that unemployment by 5 million at the end of the year. David here at the end, there are reports that may be congress may do the supplemental on employment insurance at some level right away and i get to the rest of the stimulus after, so they dont run up against that deadline. Do you favor that . Richard we need a conference of bill because all of these things are important. You have the bill in aviation about to expire. State and local government. If they did a thumbnail, bridge so there was no extension or gap, of course we will look at that favorably. But you cannot just say lets do that and quit. It is far more than that. Right now, the economy is teetering. You are seeing the number of people out of work continuing to grow. One out of every five workers out there right now is on approved foror is unemployment. Then you have a number of people, about a third of that 35 are getting pandemic unemployment assistance, which means under regular Unemployment Insurance they wouldnt. If that expires, 11 Million People would go without anything. David always a pleasure to have you with us, richard trumka. Coming up next, we will speak to the acting chairman of the council of economic advisers at the white house. Balance of power on Bloomberg Television and radio. David balance of power on Bloomberg Television and radio. Im david westin. Claims came out this morning and disappointed because they went up for the First Time Since march, although continuous claims went down. Tyler joined by goodspeed, the acting chair of the council of economic advisers. Does thissense, disappointing number on jobless claims at all in form the pressure to get something through congress right now . Tyler we were certainly hoping for a 16th straight week of seasonally adjusted claims declining. Instead we saw an uptick in initial claims. So this is definitely something we are studying closely, looking at the numbers to see if this was an anomaly or something more concerning. What we saw in the report that that theraging is continuing claims of insured unemployment declined by 1. 1 million workers. This is for the week ending july 11. This is actually the second biggest decline on record, the biggest being the week ending may 16. We were hoping for a further decline. We are studying it closely but we saw some encouraging data. You are an economic historian by training, have written in the area. Can you figure out why it happened . Most specifically, is it because some states have have to shut down again as covid19 cases rise, or might there be another cause . Tyler one of the interesting things we see in the data is that the un adjusted initial 142,000, aine by 9. 4 decline. Ultimately, we are wondering whether the unadjusted numbers may prove to be more reliable as the seasonal adjustment procedure may not be appropriate for levels of initial claims that are several orders of magnitude higher than norms because of factors related to seasonality. I think that is one factor we are considering. The other thing to keep in mind is, over the past nine weeks, insured unemployment has fallen by 8. 7 million, even as initial claims totaled 15. 1 million. This indicates to us that there is still a lot of labor market churn out with positive net hiring, so new hirings are exceeding those claims. David the goal for all of us is to have no unemployment. As you look at the proposals on the hill, and we are up against some deadlines about this new fiscal stimulus, what does your economic training till you would be most effective in getting the economy going, particularly getting employment backup . Great question. Certainly, secretary mnuchin, chief of staff meadows has been working with Senate Leaders on the hill to have a second round of the paycheck protection tax credit,hiring and to make sure we are striking a better balance when it comes to Unemployment Insurance benefits. We want to continue to have enhanced on a plumbing in her to benefits but not excessive implicit tax rates on the return to work. Those are all encouraging elements of the plan that is emerging on the hill. We would have very much preferred to have the president s proposal for a payroll tax cut. David address the payroll tax cut. I understand secretary mnuchin said not this round, maybe coming up, but as a practical matter, if you are not employed, you dont get the benefit of the payroll tax cut. Part of the argument is that it would encourage more employment. How does that work . Tyler you tax something, you get less of it. This is a tax on payroll employment. If you decrease that tax come you get more payroll employment. Is very helpful for jobless americans because it incentivizes hiring. Household income and therefore spending, which is 70 of the economy. Incentivizes the maintenance of employer and employee matches, so we can avoid the longterm scarring that we saw after 2008. David talk about assistance to state and local government, with respect to schools. Something terribly important to President Trump. You agree there has to be a large commitment to the School System so they can socially distance . The president is absolutely right, we need to do everything we can to make sure that schools can open this autumn. Discussions have been moving toward a large package to support the schools of 105n, on the order billion. I think that will definitely be a priority in any final phase for agreement four agreement. David thank you for being with us, dr. Tyler goodspeed, acting chairman of the Economic Council of advisors at the white house. Coming up on radio, we are , aboutg to Carly Fiorina what a biden presidency may look like in terms of taxation and economic policy. Balance of power on Bloomberg Television and radio. Vision and radio. Mark im Mark Crumpton with bloomberg first word news. Tensions between the United States and china continue to escalate. Today, beijing warned washington to carefully think about where the relationship between the two is heading. Aat was in response to question about their trade deal after the closure of the consulate in houston, texas. The spokesperson called the closure a serious sabotage of chinau. S. Relations. In florida, 173 people died from the coronavirus in the past 24 hours, a record, pushing the states total death toll to more than 5500. Florida is seeing on average five times the number of daily deaths it saw one month ago. Mayor of portland, oregon was tear gas by federal agents last night. Mayor ted wheeler was talking. Ith demonstrators it happened during another night of demonstrations. Protesting the presence of federal agents to clamp down on unrest