Cimarusti later on, chef and owner of providence l. A. First, lets take a look at markets. We are down but all of our lows. The s p 500 off by half a percent. The nasdaq is actually up by half a percent. Airlines are the movers as Warren Buffett says he has sold out of all of the four airlines that he has stakese. Lets get a deeper dive into the market with taylor riggs. Track for itsp on Third Straight day of losses. At bank ofrates team america said typically you would not advise investors to follow that seasonality, but it fundamentals match, it could fade that risk rally. Big tech is that they got performer today, led in part by the three trillion dollar companies, microsoft, amazon, apple. Airline serving after Warren Buffett sold his stakes. On a forward pe basis, multiples look higher again. As the denominator of that ratio collapses, investors are rushing into bonds. You can see that inverted yield. You get a sense money is being put back to work in the equity and bond space. You mentioned Warren Buffett. If money is not going into the airlines, hard to believe it will not affect the airline suppliers. If you are bearish on the airlines, you could feel the same way about the aircraft suppliers. Those stocks are lower today as well. , theted to end on j. Crew first major retailer to file for bankruptcy and be a victim of this pandemic. They are in talks with lenders debtnvert 1. 6 billion of into equity. But they will hold onto madewel l, which will remain a part of j. Crew. Vonnie the Texas Railroad commissioner believes the limit output in the Lone Star State will fail and commissioners will not potentially even vote on it tomorrow. This, as demand has dropped drastically in the industry. We spoke with the commissioner earlier. At this point, it looks like the market is bottoming out. Texas producers are shutting in. We have probably missed our opportunity to lead on this. At this point, we are not going to prorate tomorrow. Are you going to support this tomorrow . I know the commissioner, i read his oped in the houston chronicle, and he was firmly against this idea that this process should be managed. Are you going to side with him . I dont even think we are going to take a vote tomorrow. We will see how the other two commissioners want to move. The political process has slowed us down. We have not evaluated waste, done calculations about how proration could positively affect economics. Its been purely a political discussion. We are still not ready to act. It is too late. There is no proposal to make. Preparation is now dead. How much industry pressure was there on occidental, others to agree it should be left to Market Forces . Pioneer was not in agreement, in fact, splinter off from the industry group. How much did the large players impact the reworking of your position . My position has not changed. If you go back in time, six weeks ago, we should have been taking action, we should have been proactive. You would have seen much less industry distraction in the United States. At this point, the major players, the political organizations really slowed process down so much we missed our opportunity. It was not that my position changed, we just got to a point where we could no longer make a difference. Vonnie so it has changed, effectively. If that is the case, if it is too late to do the right thing of course it never is how do you anticipate how this will work out . What do you say to states like oklahoma, and other states . But it may take action, will probably not have a major market move. You say it is never too late to do the right thing. It is interesting in this case, the right thing in weeks ago it is not the same thing as the right thing today. If someone said we have a plan to prorate proactively to respond to current market conditions, i would support it. Since we cannot put that together because of the Political Forces around austin, there is no way to practically take action. I think in another year or two when demand comes back to 90, 90 5 Million Barrels a day, the country with the most loss of Oil Production will absolutely be the united dates. We will have been the big loser. The United States. Forward, think, going given the lesson that will have been learned, if the math works out the way that you say it is likely to, do you think texas, the United States needs to get better organized in managing its output . I dont think its about oil output specifically but how to support our key industries, our most vital infrastructure in the middle of a crisis like this pandemic. The oil industry has been very successful in the United States for the last 50 years. The government, from a management perspective nonregulatory perspective has been fairly laissezfaire. In the middle of this complete meltdown of our global economy, forcannot take zero support the oil business, otherwise, we will lose out. I think there needs to be much more thought given to how we use data and understand impacts to markets, to protect such a vital piece of our economy. I think there needs to be much more thoughtvonnie that was par interview with the Texas Railroad commissioner. Lets get a check on the first word news with Mark Crumpton. Raisedresident trump has the count of americans he expects to die from the coronavirus. Foxnews aent told number could be as high as 100,000. At the beginning of april, the president said he hoped the desolate total 60,000. The desolate total 60,000. The president accused china of trying to cover up the coronaVirus Outbreak. He promised the u. S. Government would come up with a conclusive report on the origins. Onsaid imposing tariffs chinese imports would be the ultimate punishment. The Associated Press reports china covered up the extent of the outbreak so it could stock up on medical supplies. Sixwe coronavirus locked on the supposed to end today but instead has been extended by another two weeks. Some work will be allowed to resume in parts of the country, though, the number of cases amongst the countries population has not fallen. Officials say they have slowed the contagion, buying india time to prepare. 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. Vonnie this is bloomberg markets. Im vonnie quinn. As state start lifting their lockdown orders, restaurants are among the first businesses to allow reopening. Restrictions like cutting the number of seating in half for servers with masks. It will create a new normal across the country. Eur michaelrant cimarusti, owner of providence, joins us now. Talk about when you anticipate reopening providence, assuming that you will. Michael well, we are definitely going to reopen. The question of when is sort of up in the air. Although our governor in california, gavin newsom, has ease, us a bit of a t saying an announcement of restrictions could be announced this week. What that date will be, but we know news is coming this week. Vonnie how are you preparing for reopening . We are looking at pictures in texas that showed some restaurants reopening but when distance between our seats, booths closed. Do you have a plan for the reopening of confidence . Providence. . Michael businesses thrive when at capacity. It seems in this new normal, we will not be able to fill our restaurants at capacity. That causes us to look at our budgets, reforecast our sales. Those are the types of calculations we are making right now. Vonnie what will employment look like, given that you will have fewer covers every night, and given that Raw Materials may not be easy to come by, could be more expensive. The supply chain is messed up at the moment. Do you imagine it will be a smaller restaurant at the end of the day . Michael i think it will. Mandated capacity will be much lower than our actual capacity, so we will have to adjust for that. Of supply chain, i dont anticipate too many problems. Especially at providence, we deal with ingredients that are out there, these are not commodity ingredients in high demand in the first place. We deal with a lot of boutique farmers, partition all fishermen, craftspeople. The ingredients that we need will be ready for us once begun open again. Vonnie there has been a lot of program,ith the ppp independent, small restaurants trying to access it. Do you have any updates on how it is proceeding, how your colleagues have been managing . There has definitely been an issue with that. I have friends that run the gamut in terms of size of the restaurant that have been able to get ppp loans. With the program, the loan origination date begins the date you are funded. You have eight weeks from that moment to spend that money come in order for it to be forgiven. The problem is, if you live in a city or state where you are forced to be closed, what good is the money . Certainly, it is good that you can keep your employees on the payroll, but there is a possibility that for many they will not be able to reopen their doors before that eight weeks of cash runs out. Then you are back to square one. Vonnie how viable will it be as an industry if youre looking at increased cost for protection for employees, rent may be the same, each individual restaurant can organize a deal with his or her landlord, what does the future of the industry look like, what are you most concerned about . Michael everything that you just mentioned. I believe the future is not as bright as it had been at one point. Especially here in los angeles, we were in the middle of a restaurant boom. Many places, including our own, had some of the best years we had had recently. Clearly, that forecast is changed greatly, and not for the better. It will definitely be a difficult road back. Providence has been in business nearly 15 years, we survived the economic collapse of 2008. Clearly, the situation is more dire, but i think we have the skill set and the support out to bringng angelenos the restaurant back. There are all sorts of restaurants out there that are in the same boat as we are. I feel like angelenos, especially i can stick to that because this is where i live. Everyone i have spoken to is itching to get back out there once it is safe to do so. I feel there will be support for the industry. Vonnie i think that goes across the country. I was reading earlier, people spend 50 of their food budget out. That would make it seem that people would want to replace that have it going forward. Only so much that you can eat at home. From able to eat meals chefs like yourself is a treat. Of course, that being said, will prices go up . That remains to be seen. For commodity products, there will be a strain on the supply. Those prices will probably go up. In terms of the ingredients we use, im not quite sure. Farms wethese boutique deal with, they have product that they really cannot sell at the moment. It is actually in surplus. Restaurants are sort of their lifeline for success. We are a key part of their supply chain, we are their end market. When we are able to reopen, we will find that some of our prices will remain as they were, some will probably rise. Vonnie take us inside the thought process. Extraordinarily difficult to decide when to reopen, who to call back in terms of employees, who wants to come back, particularly when you , that within the administration, suggesting that the number of deaths could double by early june. How do you decide this is the date, and we are going to reopen . All, we havet of to wait for guidance from our governor. When that announcement is made, myself and my partners, we will sit down and assess, decide if we feel not only the climate in terms of our ability to keep our employees and our guests safe, but also, is the role that we , a opening up into restaurant that can only be seated at 50 capacity, isnt worth opening up, or should we wait longer until it is more safe and restrictions are lifted . ,onnie awardwinning chef Michael Cimarusti of providence. Thank you for joining us. With President Trump pushing to reopen the United States, wayne the competing interests of the economy and public health. We will speak to dr. Amesh adalja from the John Hopkins Bloomberg school of public health. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. We just go to Michael Cimarusti about the business side of opening up the u. S. , he is caught up in this tugofwar between economics and science. To the science side of the conversation now, lets welcome dr. Amesh adalja. His work is focused on emerging Infectious Diseases and pandemic preparedness as well as bio security. Im sure you saw the report out a little while ago, internal documents from the administration suggest there could be a doubling of deaths in early june. Can you react to that report and whether it seems possible . We decreasehat as social distancing, we will get more deaths. That is a simple fact. Vaccine, without a highly effective treatment, debts will continue. The question has always been, will the hospitalization rate, the people needing hospital level care, one that exceed capacity . That is the issue we have been struggling with. Flattening the car was about preserving hospital capacity. These debts were going to occur, and they will occur at a faster rate once we get back to normal economic activity. This should not be a shock to people, but the way it is presented to the general public has been bad from the beginning of this pandemic. Vonnie that is a terrifying thought. It suggests that at least we have the beds, so if you get sick, there is a potential bed. Should stay to reopen then, doctor . Dr. Adalja states need to look at what is happening on locally. Do they have the capacity to care for these people, do they tracing,nostic testing, and then they can start to remove social distancing. It is not an all or none proposition. Mass gatherings will not be safe to have. But the fact is, we will have to come up with a way to deal with this number of cases and deaths until we get a vaccine. That is why it is so important to focus on vaccines and antivirals. The virus does not change its behavior, it will still act the same as we open up. States have to be careful about what they do. There are some places where it will be more difficult to get back to regular activity. But we should not paper over the fact that we will be getting deaths from these cases that will occur. That is what this virus will do. This is a societal discussion we have to have over what is the right talents to strike here, because this virus will continue to act the way that it does. Getting worde just in texas, eight hundred 84 fatalities in the last 24 hours. The cases have risen 2. 5 to 32,332. Individual businesses are taking measures in texas, making sure there is social distancing in place for the most part, although im sure some feel they dont have to. Are we guaranteeing that fatalities will rise because of states reopening . Given what you said, it seems that is a fact. Dr. Adalja i do think it is a fact, something we have to accept it will happen. With texas, for example, i would not necessarily look at the depths right now and say this is an example of the reopening. , so there is a danger in trying to attribute the cases right after the opening. Really, that is what happened two weeks ago. But i do think that as people interact, they will get the virus, and viral people will be infected, and some of them will die. You have to balance what goes on in the economy. Keeping the economy completely locked down will lead to other asts, as well as deaths well. Cancer screenings are going down, vaccinations are going down, chemotherapies are being delayed. There is this tradeoff we have to deal with. The beginning of this pandemic was managed so poorly in the United States, we are now in this situation we are in. Vonnie thank you so much, dr. Amesh adalja, johns Hopkins Bloomberg school of public health. Mark im Mark Crumpton with bloomberg first word news. After weeks of unprecedented restrictions, most governments in europe are now taking steps to reopen their economies. The worst hit countries on the continent, italy and spain, removed some curves today as the Virus Outbreak showed continued signs of receding. More than 4 Million People were cleared to return to work in italy. Spain, which recorded a second day of deaths under 200, allowed people out to exercise for the first time in seven weeks is weekend. New York Governor Andrew Cuomo reported 220 six more fatalities in the state from coronavirus, the lowest onedate figures since march 28, down more than 70 since early april. But Governor Cuomo cautioned, the decline from the mountain is not as steep as the incline. He says he will consider opening up in regions where there are fewer than five deaths a day. He didnt say whether new york city would be held to the same standard. Congress will focus on negotiations for more stimulus funds this week. Democrats are pushing for more than a trillion dollars in additional spending, adding to the 3 trillion allocated to pandemic relief. It comes amid objections from republicans and demand from President Trump. To state and local governments. Lawmakers are using opposition to that proposal. Benjamin netanyahu is facing a litmus test. Israels top court is considering challenges to his bid to secure a Coalition Government with benny gantz. The opposition government argues a unity government which yield netanyahu in a corruption trial. Netanyahu was indicted in november on bribery and fraud charges. If the court finds against him, it will likely trigger a snap election, the fourth since 2018. 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 bloomber