Markets. All i have to say is, what a risk on rally we are seeing. The mystic stocks are the big out performers. The russell is outperforming the s p 500 for five straight days. Lift up of 10g a basis points on the 10 year, the highest since march 19. I cannot remember the last time i saw a 90 basis point print on the 10year. Further weakening on the dollar, weaker for seven straight days, nine of the last 10. You wonder what that means for the fed Going Forward. Lets get perspective from kailey leinz. What do you take from this market rally . Kailey i want to start with technology. The nasdaq composite is set for a record close, as is the nasdaq 100. If we can see how that index has performed this year, it is like this a lot never have been. Now 2 above the record close in february. You can bank microsoft, amazon for those gains that we have seen. Positive by now 12. 5 on the year. It is not Just Technology outperforming. It is the more cyclical growth sectors that are leading the way on the back of that blowout payrolls report, and the better economic sense that it gives us. , this is up more than 7 as oil is nearing 40 a barrel. Banks are higher by 5 . Airlines are higher by another 9 . That index is now up 40 on the week. The outlook for travel demand starting to look better, recovery taking shape in those beatendown stocks. But we have to ask the question, how much of this rebound is due to shorts getting squeezed out of those positions . We see the Goldman Sachs most shorted index. Names. Most shorted 45 fromx is up only that index in march, but the 75 ,ed rally has risen really indicating the effect that the short squeeze has had. The 10 year yield of 10 basis points today. Past five days, 27 basis points, the worst ever week for treasuries. Not a lot of demand for safe havens as the economic picture looks brighter. That puts the 10 year back closer to 1 . Taylor breaking out of the trading range that we have been stuck in for two months. Thank you. The labor market unexpectedly rebounded in may. Surprise, that report was received well by President Trump. Goodthink we will have a upcoming few months. This is better than a v. They were talking about, will it be a v, u, l. The only thing that can stop those is bad policy, leftwing policy of raising taxes, green new deals. If you think about it, the greatest comeback in American History but it will not stop here. It will keep going. Taylor joining us to discuss how she reacted to the report is Macropolicy Perspectives president and founder Julia Coronado. Hopefully, you can break down that alphabet soup. First question, how did we miss this . Julia we knew that the data was going to be tremendously noisy during this period, measuring the economy is really hard during a shutdown. In fact, we saw the Response Rate to the Payroll Survey and the Household Survey go way down , particularly for payrolls. Downy see more revisions the road, and we want to be cautious in interpreting anyone months numbers. We always are but especially now. Shows how much of this some of the success of the government stimulus programs, state programs, how much of that plays a role in the positives at least for one month . We see evidence that some of these policies are playing a role. We do think the payroll Protection Program, which incentivized people to bring back their workers, is at play here. That was confirmed by the adp report. It is worth saying, the adp report still shows substantial job losses in may come as well as jobless claims numbers, which are still rising. We want to be careful. I think that we are seeing overall is a bottoming in the labor market. We think some of these jobs are related to the ppp program, so we want to see how much staying power there is over the next 3, 5 months, after those programs expire. It is also worth noting that we saw the jobs come back where we would expect. Jobs that were most affected by the social distancing requirements and shutdowns, like construction, retail, restaurants. Meanwhile, there is more evidence of more structural job losses in energy, state and local governments, which are still seeing record job losses. These numbers are big, the biggest we have ever seen, but we had 22 million job losses over the last couple months. Is a big surprise, but the data will be tremendously noisy during this period. Taylor throughout this noise, provide some clarity. We heard the president talking about the alphabet soup that we have done on this program. Any information from this report, extrapolate out in the future about what an economic recovery may look like . Are we looking at a vshaped recovery at this point . Julia no. That i am pretty strongly convicted in. Million, if you are looking at the level of employment, we are still in a deep hole. The job gains of in may were parttime workers. Again, in the sectors that were most impacted by the shutdowns. There is evidence of ongoing structural reductions going on across industries. That we are in, this is good news that we are maybe bottoming. Growth insequential may, june, july, but to recover what we have lost is still a long road. Our forecast is sort of like the sh, and i still think that is the most likely scenario, a gradual climb out of this hole. Taylor what do you see as the biggest risk to this recovery . Isnt it that some of those stimulus programs expire in a few weeks, months . What happens then . Do you continue to go back to layoffs . Julia exactly. The policy risk is a big one. The policy that was put in place was aggressive, significant in dollar terms. We saw that in some of the consumer income data. The dollar is flowing to businesses and consumers, and it is definitely helping them pay the rent, feed their families, stay current on their loans. A lot of these programs are set to expire. Ppp was 2. 5 months of payrolls. Jobless benefits expire at the end of july. That will be a v enough to reduce that unemployment by july. We will still be looking at doubledigit unemployment likely in july. Those programs are still needed, if we want to keep this recovery moving. That reports like this, and the Market Reaction to it, may take the pressure off of ake them more m complacent than they should be. Taylor our thanks as always to Julia Coronado, Macropolicy Perspectives founder and president. Lets get an update on first word news. For that, lets go to Mark Crumpton. You were just alluded to, President Trump is celebrating todays surprisingly strong jobs report. In a rose garden news conference, the president said he expects the u. S. Economy to bounce back from the pandemic faster than previously thought. Onlyresident said the thing that can stop us is bad policy. Left wingued again bad policy of raising taxes and green new deals. The president also criticized governors who are keeping their states on lockdowns. Study of the antidrug that President Trump touted for coronavirus showed it has no benefits for hospitalized patients. Oxford university publish the results of what is being called the recovery trial for hydroxychloroquine. On Research Says and rules any mortality benefit or impact on hospital stay duration from covid19. Drug for italy is seeing an uptick in the number of cases. The country reported 518 new cases, the most in a week. The country says it is also increasing testing. 234,000s had more than confirmed cases of the virus. More than 33,000 people have died. In florida, the number of new cases continues to climb. State Health Officials reported more than 61,000 cases today, up 2. 2 from a day earlier. More than 2600 floridians have died. The state began their phase one reopening on may 4. 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. Taylor the pandemic has hit many industries, but none more than the food industry. However, with Food Service Jobs jumping 20 in todays jobs report, restaurants could be making a recovery. Joining us now is the National Restaurant association ceo tom bene. Anecdotally,if some of your members have been giving you glimpses that this was happening. Have they been slowly started to rehire . Tom thank you for having me today. The news that came out about johnson in our sector is encouraging. With the reopening happening out there, not at the rate that we need today, we are seeing some employees coming back to work. , at thelenge for us is height of this pandemic, we had around 8 million employees laid off or furloughed. We are certainly on the road to slow recovery but there is a lot of uncertainty out there. Taylor are you surprised by some of the nimbleness of restaurants to shift to do takeout and delivery, as many were closed for Indoor Dining . What are restaurants showing you in hell nimble they had them in transitioning throughout this pandemic . Tom it is one of the great things about this industry. It doesnt surprise me at all. One thing that makes this industry great is the creativity and entrepreneurial spirit that has always existed. These folks are always looking at ways to solve problem for their guests, create new experiences. Im not surprised that they have been able to shift quickly to things like delivery and takeout, but other things like alcohol to go, where the industry is nimble, doing things to get themselves back on track. Although we have a long way to go. Taylor you have highlighted it, 8 million jobs lost. While the get a little boost from todays report, nowhere near back to the levels that we previously had. Look at those numbers, how long do you think it will take to recover the old eight in jobs you lost . What are some of the barriers that you are noticing . Couple of things. We think about not only the 8 million jobs, but we anticipate 240 billion in losses will be had in this industry by the end of 2020. Recovery will be important, it will take some time with the uncertainty out there. The biggest thing is the amount of openings that are allowed. We know many communities are at 25 today, some moving to 50 . It is hard for the industry to survive at those levels. We need creativity between state and local governments working with the restaurants, creating an environment where you can get more people back in the environment, albeit safely. We are partnering with local and state governments to do that. But it will take the industry getting back to more capacity. At the current level, it will be difficult for the industry to sustain this. Taylor and also the worry that people will not want to go out until there is a vaccine. What have you heard from some of those state and local governments that have started to open up, how quickly our consumers returning . Tom you hit the nail on the head. The consumer or the guests needs to feel safe. Food safety and safe food handling has always been a hallmark of this industry. You think about the training and Certification Programs in place , iny, have been for decades partnership with the cdc, fda, usda. Those things will help us. We are used to doing these types of things. There are new cleaning procedures, protocols. We will be in partnership with those same organizations. It is giving consumers confidence they can come back in and enjoy a meal come in a safe environment. The good news is we have a huge head start. We just have to reinforce that and remind consumers and give them that confidence. Taylor is your industry pushing for more stimulus money . Tom absolutely. If you think about the ppp program, that was a great step toward a more complete relief package, but this is just a bridge for our industry. We have asked for more focused therts, certainly believe next recovery bill needs to have targeted relief for restaurants. We have asked for 240 billion to support this industry. Its important for everyone to recognize, this is not about creating an environment where operators are profiting. This is simply creating an environment where they can survive. An importantre part of all of these communities that we live and work in. Its important to get this part of the industry back on its feet. Taylor there are a lot of restauranteurs who say frankly, there is nothing appealing about serving in a mask and gloves. It takes away from the experience. Is that true . Tom back to what is important, we need the guests to feel comfortable, and we need employees to feel comfortable and safe. It is more about creating the environment where everyone has that comfort. If having a mask on, having the thatr wearing a mask, and helps the customer feel more comfortable, we are ok with that. Its about creating the environment where everyone feels safe and comfortable. Restaurant thanks to National Association ceo tom bene. We will have much more next. This is bloomberg. Taylor there is no doubt zooms popularity grew during the coronavirus lockdown. To the companyke ceo about growth and future projections. We were really happy with the demand we saw in q1. Customer growth over 350 . Into q2, weving continue to see strong demand, not at the same levels that we saw in q1, but what this does is build a broad base of customers now that we have the opportunity to sell more products into as e, ourlike zoom phon cloudbased system, as well as an increased demand for our webinar products. As we see companies around the conferences moving to a virtual space, as opposed to in person. I really think that will continue for the foreseeable future, even as we see a deepening of shelter in place restrictions, it will probably a while before we all gather. The way that nvidia has been integrated into our lives, i expect a hybrid approach. Forecasting 500 million for the next quarter. You think the next couple of quarters will be consistent with that. Meanwhile, several companies are pulling their guidance. This has been a go to in the pandemic. What gives you certainty when there is so much uncertainty still . We added 500 customers in the up market with greater than 100,000 of annual recurring revenue in q1. Typically commit to multiyear agreements. We have greater visibility than other kind of these Companies May 2 with our future revenues. Wet said, we have said that could be flat going into q2. Half of our Customer Base were mostly on contracts. There is potential volatility around those customers, uncertainty around how long this pandemic last, is the Economic Uncertainty . While we are seeing great news today, it is uncertain what the longterm economy looks like, and that is why we are guiding to flat between q1 and q2. Lets say there is a vaccine, and people are tired of not going to school and work, and people are tired of zoom. Do you foresee a point where gloat plateaus or dips because of a pullback . First of all, how could any be tired of zoom . Radiok we have seen communications have been integrated in all aspects of our lives, not just work lives, but social and personal lives. People have seen how efficient and effective it can make them in their day. Sure, maybe you dont want to spend all of your day on zoom meetings, but we will see a mixed approach to that. Waysve all learned right to spend time with our friends and families around the globe, if you cannot be with them in person. We also have many other products and we have this broader Customer Base that we can sell into. We have our zoom phone which is a great match with the meetings. We are looking forward to having the opportunity to sell that to customers. As people think about going back to the workplace, we have our Conference Room solution. That integrates nicely with zoom meeting. Thoset way to connect people working from home, but also having a presence in the office. You are the one that is modeling this out. You only see an upward trajectory . We are very confident in our longterm trajectory. Taylor that was the zoom ceo. Spiking after it was reported that they received interest. Perhaps some consolidating happening in the food delivery space. This is bloomberg. Mark im Mark Crumpton with bloomberg first word news. President trump says he expects the u. S. Economy to recover from the coronavirus outbreak even faster than predict that after todays jobs report showed a surprise gain of millions of jobs. The president made his comments earlier in the white house rose garden. The numbers are great. This leads us onto a long period of growth. We will have the greatest, we will go back to having the greatest economy anywhere in the world, nothing close. I think we will have a very good upcoming few months. The president also sign a bill to increase flexibility in a Paycheck Protection Program. The measure gives businesses more time to use money available and have loans forgiven. Cities across the United States are bracing for a second weekend of protests. A Record Number of National Guard were deployed nationally today. Video of a confrontation between Buffalo New York Police and a protester has gone viral. The footage shows an elderly man lying on the ground with blood pooling near his head, after an officer shoved him backward. The citys mayor has ordered an investigation and suspended the officers without pay. Here in new york city, Health Officials are optimistic this is a major turning point against the coronavirus pandemic. Time since march, the city had no confirmed deaths from the virus. In april, at the peak of the pandemic, new york city saw about 600 fatalities a day. A group of senior lawmakers from eight countries including the u. S. Has formed an alliance to counter what they say is the threat posed by china. The interparliamentary alliance on china says it will focus on what chinas growing influence mean for global trade, security, and human rights. Florida republican senator marc