Spot index down. 75 . That giving a boost equities as well. Within the equity market, the stops outperforming confirm the narrative is about reopening more economic optimism. The best performers are the likes of airlines, travel stops, the Airlines Index and hotel index up 10 or 7 . In the economic front, it is the more growth sensitive sectors leading the pack. Industrials up 4 in todays session. David which is a big change, it seems to me. In the past it was all about tech and health care. Now we are starting to see stocks that only do well if we can get on top of the virus. Is that because we have hope we are getting past it or because theyve gotten beaten down so badly at some point it makes sense . Kailey it is a little bit of both. Financials and energy are the worst performing sectors yeartodate so there may be buying coming into the market given how depressed the valuations are, but the fact that it is the cyclical growth centric stocks that are outperforming. Investors may be convinced about the sustainability of the rally, the efficacy of the measures, the fact that the economy has bottomed out and will start to recover and this was not just a bear market rally. It is something more sustainable. They are starting to come back into some of those value cyclical stocks. David thank you so much. That is kailey leinz reporting on the markets. The market seem to be looking past the china problems with the possibility of a vaccine as we got news about novavax and another contender. We welcome dr. Wilbur chen, professor of medicine at the university of maryland where he works on vaccines. Lets start with novavax, because it is just up the road from you in gaithersburg, maryland. As we get news of the new can testers going to the next phase, how do we evaluate what the likelihood is that one of these will make it . These contenders have to be evaluated separately. I think we are seeing all of these vaccines coming out of the gate. Novavaxst one is the one, but we have heard about a handful of other ones that have come earlier. One had started in march. We are watching them all come out of the gate, they are all racing towards the finish line. At least i myself am cheering not just for one horse, but for all of the horses simultaneously and i am hoping each one of them will be successful because the more vaccines we have successful, the better we are set up globally to be able to meet the need to vaccinate large populations. David that makes good sense. It, there are at least a couple of types of vaccines. One is the traditional one where you have some of the ds itself in it that is more like a polio vaccine, and one is more biotech. You have a one you have a sense of which one is more likely to be efficacious . Dr. Chen not necessarily. There are some that are made with more traditional vaccine techniques and more advanced techniques. The oldfashioned way, the way we make flu vaccines from decades of experience is we take eggs and put the virus into the egg and the virus can replicate in those and then we have large amounts of the virus. We purify it and break it down. It is a purified vaccine but that is how we make large amounts of this vaccine directed against the virus. For the coronavirus, we are using new techniques. The components of that virus, we can programmatically make that in the lab so we do not have to use a chicken egg or some other kind of species to make the vaccine for us. In other instances, we take the known virus, like a common cold virus, and put in the gene segments of the corona and we make a virus vector so that the virus itself, the normal common cold, is expressing the corona on it and it results in a nice vaccine. There are a lot of different technologies being used. A lot of them has shown early success in other types of vaccines, so we are applying all of these principles to be able to address this pandemic now. David the question everyone asks, which is unfair, is when we will get a vaccine, when will that happen . If you go back historically, have there been instances where we have had this many candidates develop this fast or is this different . Dr. Chen this is completely different. Even if you think back to 2009, with the h1n1 pandemic, i was api of the nih national trials. Time we were that making vaccines as fast as possible. We recognize the emergence of a pandemic flu in march and april able toyear and we were go through Clinical Trials quickly in october and november and have the National Vaccines available in november and december and january as they rolled out with increasing manufacture quantities. What i just described is six months or more. We thought that was fast. That is because we were basing it on we knew how to make flu vaccines from year to year. We just took that existing Manufacturer Technology and were able to make vaccines quickly. Now we are talking about presentday coronavirus, a completely new virus. We do not have a vaccine but wele on the shelf, have learned a lot about it. We are taking other technologies and applying it. We do not have the vast amount of experience. For us to go from march or may and to have Clinical Trials being done and people talking licensure, which means we have the definitive efficacy studies performed and the data that allows us to have it licensed by late autumn or early winter, or maybe late winter, we do not know what it is. Or q4 or q1 of 2021, that is very fast timeline. Unheard of before for a completely new pathogen. David does size give anybody an advantage . As we hear about the candidates, some are coming from very big pharmaceutical firms, and others like novavax are relatively small firms. When youre trying to develop a vaccine doesnt matter how big you are and how much money you have and how many resources you have . Dr. Chen i think it does, in the end, but what im seeing is the landscape of vaccines being developed where Small Companies are teaming with large companies. Academia is teaming with companies. These companies are also pulling together the resources and are or otherded by the nih federal entities or Something Like 70, which is a Large International profit organization. People are coalescing around a lot of these pooled resources. This has been very exciting. David i should say. Lets anticipate success. Talk to us about the manufacturing process. How long does it take to do that . Dr. Chen i am sorry. I cannot hear you. I think im getting interference. David theres some crosstalk. If we could take care of that crosstalk in the control room . It would be great. We could hear kailey leinz voice. Could we cut that out . I will try again and try to speak up. The question i was asking is the manufacturing step. How difficult is that . How long does it take once you find a good candidate . Dr. Chen that is very good. Anyone of these products, even if it is a Large Company that is making a product and it becomes successful and is licensed it 1, 2, 3ey have manufacturing facilities under their own wings. It makes it clear to me we have to have these collaborations with other facilities, other manufacturers that are able to make the vaccine in their own facility so we have a multiplicity affect where, lets haveome large pharma may three facilities. If they team with another company that has two of their own, they have five facilities that can be cranking out vaccines at their Maximum Capacity cumulatively. I think it is a cumulative effect because we will have multiple vaccines coming online at the same time, or around the same time, and multiple facilities at the same time to by this multiplicity affect, have Vaccines Available for the large global population. David one final question. What you hear about international rivalries . We have heard some talk about if china gets one they will keep it to themselves, we had the president of france upset with the French Company because they might give it to the United States. Our people cooperating across borders . Are the pharmaceutical developers cooperating across borders . Dr. Chen i can say as a scientist, we try to stay out of the politics of this. A lot of what you are describing is more on the political level. The Scientific Community has been tremendous in coalescing around each and every one of tose vaccines and trying advance each of these vaccines independently. It has been such a great collaborative effort. In other words, ive been working with other International Folks whove been focusing on the same things to see if we can have synergy where we can basically have Lessons Learned from one product and translate to another product. We are trying to be smart and how we design these studies so we can conduct them faster and evaluate information as fast as possible so we can have the vaccines advanced. What i am describing is that on the scientific level, the scientists are talking to each other, certainly. I do not know on the International Levels between governments or other things that are happening that are certainly out of my range of expertise that are being discussed on the global stage. David we certainly do appreciate your area of expertise. Great to have you with us. That is dr. Wilbur chan at the school of medicine at the university of maryland or he works on vaccine development. Coming up, we will talk about hong kong where their big protests plan tomorrow. We will talk about that next. Power onalance of Bloomberg Television and radio. David this is balance of power on Bloomberg Television radio. We do we go to Karina Mitchell for bloomberg first word news. Experts top Health Warning about being overconfident we are over the worst of the coronavirus pandemic. World Health Organization director told reporters we are still in the first wave and there are many areas of the world where infections are still on the rise. He said there was south america and south asia, and in particular india. In china there are fears are to be a second wave. The city of we want says it tested nearly 7 Million People in 12 days. Based on numbers released by the health commission, 206 cases were reported. Inans lockdown was lifted april but new cases were discovered this month. For the seventh consecutive day, india has reported its biggest jump in coronavirus cases. The Health Ministry reported more than 145,000 new infections , an increase of more than 6500 from the day before. Officials also reported more than 4100 deaths. The virus case road has been climbing as pandemic lockdown restrictions has eased. The British Government minister has quit in protest over controversy involving Boris Johnsons top advisor. Cummings has refused to resign over allegations he broke government lockdown rules. A junior officer says many voters in his district not understand the action and he has decided to step down. 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 thank you so much. Areong kong, protesters calling for massive demonstration tomorrow as the legislative consul is about to meet on a new piece of legislation protecting the flag. We turned to rosa matheson, Bloomberg International government executive editor. There are two pieces of legislation. We tend to think about the security legislation out of beijing, but there is also one pending in hong kong. Rosalind . That is right and that is related to the flag in hong kong. It is related to a central issue , which is how much and in what way hong kong sees as freedom for people and companies see as essential freedoms they thought were guaranteed with a hand over hong kong to china some years ago and that they feel of been encroached upon. That is a question of how far thea will go to curtail sense that is happening in hong kong. You are seeing the protests plan tomorrow. You can see that is getting quite noisy and possibly quite violent. The question is how much broad support is there behind that group. You see the hardcore activists of tomorrow, but as the rest hong kong truly behind them . The protests could be disruptive. They may be sizable for now. There are still restrictions on the size of protests. More than eight people. What we need to try to understand is how deep is the wellspring of disappointment with china in hong kong more broadly . We saw protests last year. Almost half a Million People. Are we at the point where we would start to see those people coming out again or are they simply worn down by a year of protests, by the Coronavirus Impact on hong kong, by an economy that is clearly in trouble and worn down to the point they decide this is what it is . David exactly. That is why has beijing price this in . They must have known there would be protests. They must have known the United States might impose sanctions. The fact that theyre willing to go forward, does that indicate beijing has taken a look at it and are willing to take the hit with the larger goal they have . Rosalind it seems to be the are number of factors that comment. Come in. There is a possibility the majority would swing. The opposition parliamentarians. They claim they want to get done before that. They also want to get it done while people are still restricted in movement in hong kong and while the world attention is focused on the coronavirus and the issues each country is having with that. Many countries are collapsing with questions many countries are grappling with questions on how to open their economy. That might be a good moment for china to choose to do this. They are banking on the fact that International Condemnation will be there, but the real hit to their country from the u. S. And elsewhere might be limited, and there will not be the appetite to hit them as hard as they could be affected in other times. David finally, since the british gave hong kong back to china, it has been one country two systems. Some people think that may be gone. Is an overstatement . Is beijing on the way to saying it is one country . Pays lip service to the idea of one country, two systems. They need to Pay Attention to other areas, including macau. One thing that has been interesting is china saying they do not need hong kong as much as they did 10 years ago because they had a Strong Financial sector. Any international companies, including banks, operate just over the border. The trait throughput they go through hong kong into china is minimal. China has been saying we do not need hong kong as much as you think we might. Therefore it is less important to us to maintain a pretense of one country, two systems anymore. We can cut hong kong out of the Global Financial system and it does not matter that much. That is very much their thinking. They will at least say publicly that the two systems philosophy remains. It is important for them to say that, at least. The reality is it is less of an issue more and more. David thank you so much. That is our bloomberg colleague rosalind matheson on hong kong. Coming up next, we will talk about homebuilding, which is on the rise today. Ons is balance of power Bloomberg Television and radio. David the stock of the hour is Toll Brothers, which is up more than 4 , the highest it has been since early march on those encouraging numbers about new home starts. We will turn to kailey leinz for a full report. We are building new homes . Kailey we are, indeed, and we are selling them. Toll brothers higher for a third day in a row. Part of this has to do with the broad market rally and optimism about economic recovery. The data was much stronger than anticipated in april after the big plunge we had seen in march. Home sales climbed. 6 at a pace of 623,000. That was well above the 480,000 expected by economists who saw stronger sales in three out of four regions in the u. S. And this suggests the Housing Market is starting to stabilize, aided by the fact that Mortgage Rates are near historic lows and homebuilders have held up pretty ok in that they have gotten aid from local governments and have been deemed an essential industry so they were able to keep ability despite the slow down. That has Toll Brothers not hire, but others are all rallying between 4 and 5 . This is an extension of the recent rally we have seen. Toll brothers hit its low in midmarch. It is up nearly 120 and climbing higher again today. David fascinating. It is new homes. People want shining new homes because maybe there is not as much coronavirus. Thank you to kailey leinz for that report on Toll Brothers and the housing industry. Coming up, memorial day is the time when we see president ial candidates. We saw them out yesterday. One had amassed, one did not. There seems to be a bipartisan split on the coronavirus and how you approach it and how you treated. Well be talking with our bloomberg clinical contributor jeanne zaino who will take us through where we are in the president ial race. This is bloomberg. David this is balance of power. Im david westin. It is time for first word news. City, they have hired 700 contact tracers. They will be ready to get toward by june 1. Health Officials Say dressers are key to stunning the threat of the virus by identifying people who are infected have come into contact with. The city had planned to hire 1000 tracers pay the Spanish Government has declared 10 days of morning for the nearly 27,000 people who have died fro