Measures protests in a series of democrat led state, including michigan, a crucial state in 2020. He is going back and forth between whether he is in power or not in power when it comes to these decisions. The main critique for measures he introduced yesterday which will allow states that believe they have it under control to start loosening restrictions is that we still do not have Testing Capacity to catch any outbreaks that might pop up. That is fueling concerns there might be a second wave, either in regions or nationally that would lead us back to having to reimpose shutdown measures. That is the concern right now. Certainly trump once certainly trump wants some states to start moving towards an opening. David the president does not talk that much about testing, but every single Public Health official we saw, that is key. We have to test to know whether we are going too fast too far. We have a sense the white house has their arms around testing and know what testing is available . Do they have a means other under the defense production act or otherwise to ramp up the test kit . Josh their calls from democrats to get them to ramp up testing. We need to expand testing of people we think might have it and people who have met folks that do have it. We are nowhere near having the capacity to do that. There are all sorts of bottlenecks. Some places are short ons walls test, some are short of processing the tests. Another thing we are missing is anybody tests. If you want to bring your workers back into the workplace, you might want and Antibody Test to know who has it. Is there immunity . These are questions we do not have. It is Testing Capacity we do not have. Some employers who choose to open because they will be rolling the dice because they do not know which of their employees have it or which do not. David another place we do not have the capacity is getting money into small businesses. They ran through that 349 billion quickly. Their plans to get it going on capitol hill but that seems to be deadlocked. Vice president mike pence will have a call with democratic senators. Is that about that funding issue . Where does that stand . Josh for republicans, it is a simple issue. They want the ppp money for small business. Democrats say the program is not working. It is skewing towards the bigger of the small businesses. The smallest of the small are complaining they have not been able to access the money. The democrats want changes. Chuck schumer was saying he and mnuchin and Speaker Pelosi are continuing to talk. He says he does not know why they would not be able to get a deal in the next few days. It does look like it will take the next few days. They want changes. Democrats say the program is not working. Republican say the democrats are holding it up and should do a straight top off and deal with other stuff later in a socalled phase four deal. So much to josh wingrove, our White House Correspondent in washington. Now it is time for bloomberg first word news with mark crumpton. Mark more and more u. S. Homeowners are not paying their mortgages. According to a report by black night, nearly 3 million American Home loans are in forbearance plans that allow delayed payments without penalty. The homeowner skipping payments because of lost jobs or income resenting 5. 5 borrowers more than 20 million americans have filed for unemployment in the last four weeks. The British Government wants its money back from coronavirus tests that did not work. Britain spent 20 Million Dollars on more than 3 million Antibody Test at the beginning of april, hoping to find which people had been exposed to the virus. British officials said they hoped the tests could be made available on amazon and at pharmacies. The virus death tolls in the u. K. Has risen to more than 14,000. In spain, the government reports more than 5200 new cases of coronavirus. That is the most in a week. Spain has the worlds second most extensive outbreak. The country is already past the peak. They are starting to focus on how to relax nationwide restrictions. 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 mark crumpton. This is bloomberg. David . David thanks. Coming up, Amanda Glassman from the center of global develop is here to talk about President Trumps decision to stop funding the World Health Organization. That is next on balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Equity markets are uptodate because of their is encouraging news about possible treatments. Whatever the case, Abigail Doolittle is here to explain what the equity markets are doing. Abigail an interesting session for the Financial Markets on this friday. It has a lot to do with those reopening plans for President Trump. What makes it so interesting is stocks in the premarket were much higher. Ow we have the s p buy the rumor,of sell the news. Traders hearing the word snapped up stocks quickly. In terms of those guidelines, there are lots of holes, lots of climbing ahead, and lots of uncertainty. 500 is off the highs of 3. 5 . Now at 1. 4 . Take a look at the nasdaq, now down. 2 . That has been one of the leaders. That tells you some investors are facing uncertainty around this, plus the nasdaq has been up so much more. Profits being taken off. Another interesting idea, take a look at the new york faang index. Reopeninge will be relatively soon perhaps putting a bit of a breather for those stocks. That is an interesting new wants think about. The big story beyond stocks rallying on the day, crude. Wti down 8. 3 . This is important if we consider a year to date picture of crude oil and the s p 500. Crude oil has been leading the entire way lower. There is a big divergence. It is a barometer of the economy and Risk Appetite could suggest stocks may take a breather from the big rally they have had over the last couple of weeks. David . David thank you to Abigail Doolittle for that report on the markets. President trump criticized the World Health Organization for its handling of the coronavirus crisis. As a result, suspended u. S. Funding for the organization. We welcome Amanda Glassman, the executive Vice President as well as senior fellow at the center for global develop met. Thank you for being here. Give us a sense, does President Trump have a point about the way the who handled this in the early stages . Amanda i dont think so. The World Health Organization relies on officially reported data from its member countries. It has to ask for permission to enter countries and investigate outbreaks. I think they reported to us what they knew and when they knew it. We wish those reports had come out sooner and we wishful reports are available all of the time. The question is whether we want to give the World Health Organization the teeth to go in and investigate when we hear signs of an outbreak. As the World Health Organization going to become like the International AtomicEnergy Agency that can send in inspectors . David i want to talk about possible reform, but on the specific issue about what happened in the early stages, i understand the whos main power is naming and shaming. Some of the things being said is the who did not call out china early enough because they do not let their people get information. Is that unfair . Amanda i think it is unfair. You have to see what is going on on the ground to use data to give a view of what is going on. I think it is off. David give us a sense of what is the significance of the usd funding for a period of time the World Health Organization. What does that do to who operations today . Amanda it is significant good the u. S. Contribution is about 100 million a year. We have a number of voluntary contributions we make through our u. S. Agency for international development. It has ranged from 270 million to 400 million. It is a significant piece of the who budget and will affect their ability to operate, particularly in the low and middle Income Countries which have less capacity to respond to the outbreak. David the who is working on the coronavirus but has a lot of other programs around the world. As a practical matter, what is it doing on coronavirus . Will this interfere with its ability to help the world cope with this pandemic . Amanda it certainly will. It is a very expensive distraction at an important time when all hands should be on deck importantre that interventions like childhood immunizations are sustained. If vaccination rates fall, that means kids will die. The who plays an Important Role in that. They also provide the technical guidance on influence monitoring, on polio eradication. All of those are important for the who. It is just a distraction at a time when we need to focus on the mission . David getting past the distraction, i want to come back to something you suggested, which is possible reform of the who. What are the prospects that coming out of this distraction we might have more teeth given to the who . Amanda as an intergovernmental organization, as you have said, you said they could use their voice to name and shame. It is very difficult for an organization owned by government to name and shame. In the wake of the Ebola Outbreak, the global community, the high Income Countries created something called the global preparedness and monitoring board. The idea was that that independent entity could give some voice and could do the naming and shaming needed when governments did not want to allow an official investigators. I would like to see the global preparedness and monitoring board have teeth and have a budget to investigate these kinds of outbreaks and to callout countries before they are willing to make those official reports. It continues to be a problem. It was a problem in the Ebola Outbreak and it was a problem today. David you know this world so well, particulate the world of global Public Health. Is it possible this may correct itself over time in the sense other countries are now turning their eyes on china in a critical way . Europe has skepticism and tough questions. Might this correct for the future countries behavior such as china . Amanda i think in any kind of autocratic state, you need other ways to be able to understand what is going on than the official panel of reporting. I always think of that pollution monitor that was on the roof of the u. S. Embassy in beijing and how that changed the conversation and also changed chinas policies in terms of what was the air quality in beijing day today. It creates an independent observation. Also in the same way countries have an countries official estimate of gdp, but then banks and other entities assess gdp, they do their own analysis of what gdp should be, what inflation rates should be. We need that in global Public Health. We need the independent monitors that let us know what is going on. David thank you so much, amanda. Appreciate you being here. That is Amanda Glassman from the center for Global Development on the question of the World Health Organization. Twong up, we will hear from president s of the regional fed about what is going on with the u. S. Economy. This is balance of power on Bloomberg Television and radio. David earlier today, mike mckee talk to cleveland fed president Loretta Mester about why the fed will be investing in highyield etfs. All of theester things we are doing our two fall. We are trying to make sure the markets stay functioning. Some of the efforts the fed has done are geared at market functioning. Some of them are geared to make sure we mitigate the negative effects on households and businesses by making sure we have credit flowing to those businesses. I look at the etf part of that as market functioning. We are continuing to look for gaps to make sure our markets are functioning. I would say some of the efforts we have taken have improved functioning in the markets. There are two things going on. One is making sure and this is the fed responsibility making sure we have markets wellfunctioning so that credit can flow, and do what it can to help shore up the economy and prepare it the recovery. Disagree on what the right way to do that is, but part of what we are doing is to try to make sure we have functioning Financial Markets precisely because those are an essential ingredient for the economy and for any other policies we do can flow through, so theres a transmission to the households and businesses that need those funding. Michael i know at this point the fed is all in doing everything it can to support the economy. When we get to the third quarter, maybe, reopening and it is time to stimulate the economy, is there more you think you need to do or can do and what would that be . Mester we will have to see what it looks like when we get there. I do not think we are up against any contrite on what we can do. I think we acted appropriately, rapidly, in an unprecedentedly rapid way because of the recognition of how deep the shop was. Shock was. The when we get to that point, we will look at our tools, do what we can to support them of the programs the federal government is doing in terms of the paycheck protection program, etc. , and be prepared to use our tools as appropriate. That was cleveland fed president Loretta Mester. Yesterday i talked to the dallas fed president Robert Kaplan and he said they are not done necessarily on their lending facility. President kaplan we are continuing to look for pockets of the economy that have been overlooked and through no fault of their own are under stress. I would say my own mindset would be we should be open minded about continuing to look for areas, whether it is nonprofits, that would be a good example, the example the issue of mortgages, mortgage servicers are under a lot of stress. Our goal is to have appropriate market functioning, and the other thing our goal is is to keep intact businesses and nonprofits that went into this healthy and only are under stress because of the situation. We would like to do what we can to help them come out the other side and continue to function. In that vein i would be openminded about what else we might need to do. David which takes us to a challenging point. The socalled moral hazard. The ones who came in healthy and through no fault of their own and are under stress as opposed to those who came in not so healthy. Are you concerned about the moral hazard and how do we come off of that return to a world where you are rewarded for prudence and offer the opposite . Pres. Kaplan i am concerned about that. That is why on the corporate cutoff ofam we set a march 22 and march 23. If you are Investment Grade on that date, you are in the program. That will include fallen angels. Companies that were Investment Grade but have been downgraded. We have said we will buy highyield etfs, but that will be a relatively small size and is intended to help market functioning. David that was dallas fed president Robert Kaplan. Now we are joined by Michael Mckee who have the conversation with retta mester with retta mester. With loretta it sounds like the fed is not done yet. ,ichael they are not done yet but the programs are designed to put a floor under the economy. You heard mester say we want to open the pipes and make sure the Financial System works so whatever we do to stimulate the economy gets to the economy. What will they do to stimulate the economy . They have already cut rates to zero. They are already doing qe. Is there anything else . We do not know yet. It will depend on how quickly the economy is recovering and what sectors are recovering when we get to grow again. David some of what they have done they have not done yet, like the mainstream lending. It is not up and running yet. How long will it be until they get the money out . Weeksl that will be two to get that started. That will be difficult for everybody to do, even the ppp program. You have to have sympathy for the banks that try to do this as fast as possible. They will start getting money out soon and the fed is lending to companies that have a cash cushion. The question is how long for this virus keep everybody down . Does it keep us locked up for another two months, three months . Or do we start to see businesses getting back and earning money again. Will people spend money . A lot of Unanswered Questions that the fed has to wait for the answers to before they decide what they can do. Questions of the big is when the oversight kicks in. People are already starting to talk about we need more oversight. Michael that will be an issue. There was a lot of strange stuff built into the federal government under the tarp program during the financial crisis. They want to make sure that does not happen again. Everyone will want to know who are you lending money to, what is the actual need. There is cr