Yields have been falling all year. The 10year gilts down five basis point the 10 year yield down five basis points. That tells us bonds are falling. The overall context has a risk off tone. When we bring the again into the picture, the yen is down. We have mixed messages. It will be right down to the wire. Weve been talking about the range for the s p 500. The level a lot of traders are looking at, 2775. That was breached. Both are holding right now. Lets see what the day brings. Vonnie when you talk about david when you talk about beatendown sectors, you have to talk about energy. Energy is getting a break. Abigail that caught my eye. Right now we have two sectors higher, the banks and energy. Energy is the worst sector on the year and a huge bear market. The worst year ever on record, but getting a little bit of a bid. Some are saying the reason we have a bounce overall was an unconfirmed rumor President Trump is open to the idea of a fourth stimulus bill around the coronavirus. That may be confirmed. Reuters headline. I am not sure. That is what some sources are saying. What my sources are saying is behind the rally. Really helping out energy and the banks. The Kbw Bank Index all over the map. At one point down for percent, now it is trading higher. The roller coaster goes on. Sectors, somen folks are taking a look at them for the catch up potential because they been doing so badly on the year. David thank you so much. That is Abigail Doolittle on the markets. As abigail said, President Trump has given some indication he may take action against china. We are joined by professor lisa cook, associate professor of economics and International Relations at Michigan State university. She also served in the council of economic advisors to president obama. Give us a sense of how much it might hurt china if the president took some actions so not list their securities on exchanges or we do not invest our federal Pension Plans in Chinese Security anymore . Prof. Cook this would be awful. Tos would take the trade war a very different level, and it , mutual fratricide suicide pact. We need the influx of investment from china, we need china to buy our debt and sustain many Pension Plans around the United States. This would be mutual selfdestruction. David as far as you can tell, because you do International Relations as well as economics, is this negotiating or is the president serious . Yes made sounds like this before and gotten some support from marco rubio who said maybe we should not be investing in securities in china because we do not know about the accounting system. That is a longstanding concern. I do not think that is new. Anything from china that involves data will be questioned. It is not just the accounting system. I do not know what rubios support means. This is not the time to heighten rhetoric. Positionready in a bad. Americans have paid for it. American consumers have paid for the trade war so far with china. Taxes that are paid are paid by us. If this escalates, that will be even worse. We do not have the money to pay. Ofs could be another version assured mutual destruction. I do not know what it means with respect to negotiations because the pattern has been that something very stark has been announced and it does not come to fruition. I do not know where this sits, honestly. Doannot read his mind and i not know what kind of followup there will be. David erased an important point about whether we can afford you raised an important point about whether we can afford it whether our economy we had new jobless loss, just under 3 million, given this increasing barriers, whether it is capital flow were trade, what it can do to our economy . Turn what it could investors and others thought would be a vshaped recovery many of us thought that would not be the case from the beginning, but still, that could turn a vshaped recovery into something that is much flatter and much more reminiscent of the Great Depression or this last recession we had. That is what we want to avoid. Anything that exacerbates a quick recovery should be avoided. A trade war would certainly do that. This is monumental. Enough aggregates to does there are not enough adjectives to describe what is happening and the speed at which it is happening. It is great that our economy is so flexible in so many different ways. This is one of the negative outcomes to being so flexible. Job displacements what happened job displacements would happen, demand would fall incredibly quickly. What needs to be done, as Jerome Powell was putting out yesterday is there has to be help from congress, there has to be help from the administration. The administration has to support it. It has to come quickly. The speed with which the crisis has happened has to be matched by the speed on the reaction side. You cannot be flatfooted like we were, congress cannot be flatfooted like it was in 2008. It has not been so far but this hesitation is what caused the hesitation in 2008 to 2009 this is what caused the prolonged recovery. Especially with respect to andployment for states local entities. I think that has to be paid attention to. He is not exaggerating. Powell is not exaggerating. The magnitude of this crisis has, in the last few minutes. I saw the fed is contemplating not having a june update in its outlook. That is stark. That means there is so much uncertainty that it might not be useful to do so. Ive never heard an announcement ng made in my lifetime never heard such an announcement being made. That means things are serious. They do not want to alarm the public, they want to get a handle on the data before they announce anything or print anything. David finally, it is alarming and uncertain. We have already appropriated 3 trillion. The democrats are proposing another 3 trillion. How much confidence do we have that would prevent some of the permanent damage to the economy that fed chair powell talked about just yesterday . I think it would go some way. All of this is adding up. It might minimize, not prevent, but minimize his bankruptcies. If we can keep people afloat and keep the economy afloat so people can buy take out, even though they are locked down, we can keep a lot of Small Businesses open. That would prevent the wave of bankruptcies. If we can keep them paying rent, it would prevent a lot of mortgage defaults. If we can keep them paying their mortgages, it could prevent a lot of mortgage defaults. That the economy stays on lifesupport is critical. Stopping right now is a death wish. We are learning much about the virus every day, and we have to keep learning and we have to make sure we react in a way that is appropriate. Appropriate for people to come back and stay alive and for the economy to come back. David ok, professor, we really appreciate you being with us. That is professor lisa cook of Michigan State university. We have breaking news. Mitch mcconnell has set senator burke will step down as chair senator burr will step down as chair of the intelligence committee. The fbi has seized his cell phone. There are allegations as to whether he may have had Insider Trading based on information. He sold some stocks. Mitch mcconnell is saying senator burr will step down as chair of the intelligence committee. Coming up, we will talk about illinois struggle with the coronavirus. We will have Lieutenant GovernorJuliana Stratton to talk about exactly what illinois is doing. That is coming up on balance of power on Bloomberg Television and radio. David welcome back to balance of power on Bloomberg Television and radio. Time for blumberg first word news. We go to mark crumpton. Mark President Trump cannot get a lawsuit accusing him of illegal profiting from his Washington Hotel dismissed. That is the ruling from a federal Appeals Court reversing an earlier win for the president. The attorneys general of maryland and washington at accused President Trump of violating the constitution emoluments clause. The hotel became a hotspot for lobbyist and foreign officials effort reopened in 2016 shortly before president. The European Commission has suspended the delivery of 10 million chinese masks to Member States in britain after countries complained about their poor quality. Officials say the masks did not meet medical standards. The masks were purchased from a chinese provider. The eu had planned to distribute them to Health Care Workers in weekly installments over the next six weeks. In germany, mixed news on the coronavirus outbreak. The country reported the highest number of new cases in five days. The infection rate drops below a key threshold. Angela merkels government has been gradually lifting restrictions on daily life. The International Energy agency sees the oil market improving. The iea says demand is strongerthanexpected. In the meantime, supply has been reined in by a brutal price crash. Oil production is on track to decline this month to the lowest level in nine years. 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 . Illinois has 85,000 cases of the coronavirus. That is the thirdhighest valley in the nation. We welcome the Lieutenant Governor of illinois, Juliana Stratton. Give us a sense of where the virus is right now in illinois and is the curve starting to taper down . Lt. Gov. Stratton we are certainly making progress in illinois in terms of the governor relying on the experts and following the data and the science, took Decisive Action early to slow the spread of covid19 in an attempt to save as many lives as possible. I can say that just yesterday we had 192 deaths in a 24 hour period, which was the highest number of deaths. That is why when we talk about this phased in plan, which we call restore illinois, this phased in plan is because we are still in the phase of trying to flatten the curve. We have a regional approach we are taking to make sure we can follow the experts, follow the science, and make sure we do this thoughtfully and guided by science and data so we do not bow to the pressure to open too soon, but do so in a way that considers we are still not out of the woods. David following that science and data, in illinois and elsewhere, there is an indication people of color are particularly vulnerable. We have spoken with dick durbin, your senior senator from illinois, who pointed out theres a significant issue with africanamericans, but even more , perhaps, with latinos. What are you doing about that . Lt. Gov. Stratton we are seeing the disparity in the data, and im grateful that in our Illinois Department of Public Health we are sharing the statistics and the data related to health disparity. Specifically as a relates to covid19. It goes back to your original question about where our week and the path we are on and why it is so important to follow the science and the data. We know that if we open too soon, it will be people of color impacted the most. It will hit our communities first. Percentdies say updated up to 80 of essential workers are of color and are not able to stay home. They are in grocery stores, they are city workers, their Postal Service employees and restaurants and all of these types of facilities that they are putting themselves more at risk, even because a stayathome order exists, not to mention new not to mention due to Structural Racism in the Underlying Health conditions because of barriers put up in communities throughout history. I think it is important to recognize we have to get beyond open too because if we soon people of color will be hit the hardest. That is why we are being careful about this plan, making sure we bring an equity lends to the work we are doing. I am specifically working to bring together Health Professionals of color, both black and latino, to make sure we can think not only about our response to covid, but what should be the action plan as we think about the Recovery Process to make sure these communities meet significant needs that come from the pain of this pandemic. David finally, this is fundamentally an issue of safety and health, but also has fiscal repercussions. We know there are proposals in washington to help the states. The democrats have proposed 1 trillion. At the same time, illinois has become the poster child for the fact that your Pension System means you are paying a lot of money that some people think you should not be paying. I want to give you an opportunity to respond to those who say we should not be giving money to states like illinois because you put too much of a commitment on pensions. Lt. Gov. Stratton i would say a few things. First of all, here in illinois we were on our way to fiscal stability. , we passed a bipartisan balanced budget. We were on track to do the same thing this year. We were making investments we needed to rebuild our hollowed out state government. Like many states around the country, covid19 has set us back. Just like every other state, we need a systems we need assistance, because we know more now than ever before how important these Government Services are. We are looking to the federal government to make sure they can provide assistance to help offset the revenues we have lost due to covid19, to also cover the money states are spending on local programs. That is something that is needed at the state level. Just recognize that is the federal government said, there are households where you have a majority of jobs lost. Today we learned of 36 million over the last eight weeks that have applied for unemployment. Are mostlyy of those from homes making 40,000 or less. These are individuals who are predominantly people of color, and when we think about the needs of our state as a result of this panic of this pain, we will need the federal governments help. The state of illinois contributes to the federal government through the tax structure. We want to make sure our president , just like states all across the nation, that we can get assistant assistance from the federal government to meet the needs of our citizens. David thank you for being with us. That is the Lieutenant Governor of the state of illinois, Juliana Stratton. Coming up, we will talk to steve copperyabout what the what the recovery might look like and also talked to richard trumka, president of the aflcio, about the safety of workers as they returned to work. That is coming up on balance of power on Bloomberg Television and radio. David welcome back to balance of power on Bloomberg Television and radio. It is time to our look at the stock of the hour. We will lose alibaba as a surrogate for the larger issue involving china we talked about earlier with Abigail Doolittle. Abigail,how are the how are the adrs doing . Abigail they are all down. We had some falling on the day, now recovery after President Trump spoke about the idea of looking at those China Companies listing on the nicaea or the nasdaq that are not using u. S. Accounting rules. There could be a delisting situation. He came back just as quickly, saying they could easily go to london so that may not be something they will pursue. It seems like a case of talk rather than walk, but nonetheless we did have a reaction for all of these adrs. Actuallyok at jd. Com, flipping higher. David how have they done on the year . Abigail this is interesting because the chinese adrs on the year and the bloomberg terminal shows they are actually down last than the s p 500 or the china index itself, down 2 . That could have to do with the fact these are some of the stayathome stocks, the big growth stocks. As to why President Trump may not follow through with the little bit of an implied threat about some sort of looking at Big Companies or possibly delisting them, china is the second biggest holder of u. S. Treasuries. That would be something we certainly would not want to unleash. 1 trillion. So much so it is hard to know whether or not there would be a buyer if they would try to sell. Certainly not worth investigating. David one thing for sure, we need people buying our treasuries. Thanks to Abigail Doolittle for the stock of the hour. Coming up, we will talk with steven rattner. He was the u. S. Treasury advisory on the auto restructuring. He will talk to us about a possible recovery. Coming up on balance of power on Bloomberg Television and bloomberg radio. David welcome back to balance of power on Bloomberg Television and radio. Im david westin. Its time for first word news, and for that we go to mark crumpton. North Carolina Republican richard burr is stepping down as chairman of the Senate Intelligence committee. Senator byrd is under investigation for stock trades of the at the head market downtu