Signs that the economy is on the mend. You have the manufacturing report that showed us back in positive territory. Manufacturing is no longer contracting and it confirms the positive reading we got in last weeks empire manufacturing. Indicators higher than expected on the other hand, jobless claims coming above one million. A waitandseein mode. We have seen the s p 500 go to the nearest peak and then last thursday happened, a sharp drop with a longoverdue pullback. We briefly dipped below 2000 in the s p 500. Recovery once again is the Federal Reserve gave more details on its plans to buy corporate bonds, not just , but individually, which resulted in a 77 point range in the last three days. We can see the dip come back again as a mantra for the markets. Volume has been lighter than average. Perhaps that plays into it. Maybe we will see volume pick up once again after that but we are after memorial day. David i look forward to this. Thank you for that report on the markets. John bolton is causing quite a star with a new book he is trying to bring out talking about his visits to President Trump in the white house. To talk about political consequences, rick davis who managed the late john mccains campaign for president. A fair amount of reporting already. Things the most damaging for the president that you have seen . It runs along two courses. One, the stories that john bolton has been telling in the book that we have seen in some say, the bookou has not been distributed yet to a larger audience. With all of the lawsuits the administration is trying to tie up, maybe we will and may be we will not see it sometime soon. One course is, information we did not otherwise have has made its way into the public domain. We knew the ukraine story. That got vetted out during the impeachment hearing. We did not hear about Donald Trumps conversations was using jinping and his acquiescence to that. That is a news item that i think will generate a lot of interest. If also long in Interesting Campaign theme, where the Trump Campaign has already been trying a message around joe bidens campaign, that joe biden is weak on china. This was a double whammy. News we otherwise did not have. It will get a lot of attention and it undermines trumps assertion that he is tougher on china than joe biden will be. Is there anyone out there, any voter, likely to switch the vote based on what were hearing . Does this really father President Trumps base . Think it will bother his face but there are people who will be scratching their head in the middle of this will stop voters who would swing one way or another, and they may be the supporters of donald trump houses Economic Growth over the last three years. The has been set back by pandemic but there are a group of voters up for grabs who want a liberal economic approach like donald trump has had and would worry that the Democrat Administration under joe biden would usher in more regulation, more constraints, higher tax is, in the could be found middle of the debate wondering whether or not trump would be effective as a manager of the nation and our economy, if he has been dogged by the scandals represented in the book. The book is not the only thing President Trump has to deal with today. A Program President obama had to not report people who have come here as children. He lost that. Will this hurt him politically or help him . About shotgunted blasts to peoples faces, saying you have to vote for me or we will lose second minimum Second Amendment rights. It is definitely a distraction to the message. He spent the better part of his last campaign for president in 2016 talking about the border, and stoppingnce illegal immigration. He threw the daca program under in his first year, saying these were done in a properly. It has been tied up in court ever since. You will notice there has been not a lot of talk about immigration. He has obviously moved off of that is a topic to his reelection campaign, and the Supreme Court decision reminds the American Public and the media that the debate has not ended, that there is still a lively immigration issue that is out there. I do not think it is one that will actually benefit donald trump. Part of what he has tried to convince his base is that he has been effective in building the wall and stopping illegal immigration, even when the facts do not necessarily present that case. Now that the Supreme Court said he was wrong on repealing daca, it will be another strike and i would say in this case, the base may be sensitive to it. He cannot deliver for them, what good is it that he supports it . I think for the purposes of today, he is trying to obviously change the topic. Extremely good at it. It does not matter how low he goes. He will everyone talking about his latest tweets and we will forget the fact that the Supreme Court made a landmark ruling on immigration. A big ruling, no question. Thank you to rick, our political trivia from stone port capital. We will talk with the head of one of the most important investment banks there is. That is next on balance of power on Bloomberg Television and radio. David this is balance of power. We welcome the ceo evercore isi my colleague. A lot to talk to you about. Why dont you get started . Thank you. For the last six years i have covered Investment Banking, we watched bankers leave most major large bank to go to firms like yours. When you talked to investors, you said the industry would be hiring a lot less this year, paying less this year. What is your expectation for where the Investment Banking industry goes . Think first of all, we have continued to hire an already hired two new senior managing directors this year. We have a handful of other conversations still underway. We typically hire 47 deliver year. This year, we will be at the lower end of the spectrum probably. Iso think that the industry recovering, along with the economy, more rapidly than any of us would have expected. That is probably because of the incredible speed and size of the monetary and fiscal response here in the United States and around the world. Say, whenever peoples worst fears were a month or two ago, we do not seem to be headed toward those right now. Address what is going on across america with protests. It has shined a light on, and diversity especially on wall street with many black executives across the firms. Hows ever are thinking about the issue . Ever core thinking about the issue . A number to support various underrepresented minorities, women, veterans, the lgbtq plus community. In response to the events of the three or four weeks, which of course, only the most recent manifestation of decades and of discrimination and racism, we made the largest charitable contribution we ever made, we set aside half love half of 19 to match our employee attributions to toanizations committed eliminating racism, social injustice, police brutality, etc. That is just a beginning. We, like the rest of society, have an per underperformed in the proportion of people we had in our firm, of color, females, minority to have a huge longterm commitment. This time in america has strong a lot of credit attention to have and havenots in society and how inequality more largely has become a greater part of the discussion moving forward. We are heading into an election cycle. What role will that play heading into november . , up until the covid19 pandemic, we had an 11 Year Economic recovery, which, broadly,touched people it clearly benefited those who and thehe upper strata gap has continued to widen, even with 3. 5 unemployment, it was still widening. I think those of us who have been incredibly fortunate in this country, should individually be prepared to put more of the bill foot more of the bill of taking care of those who are less fortunate. These are from a Health Care Point of view, from a housing point of view, from a jobs and income point of view, so i would there will be somewhat of a difference between the two candidates on taxation people,ighest Income Taxation of Capital Gains for individuals, which has been one of the single most important things, widening the gap between the wealthy and not wealth the not wealthy. Some adjustment upward and corporate taxes to 2528 . My guess would be, my suspicion is whoever is elected, their with highstart unemployment by the standards we have had over the last three or four years and whatever changes , it is vicee President Biden that might be very well advised to face those phase those in over a couple of years celeste to not stump youovery will stop set your business, you are still hiring people and that business maybe coming faster. Talk about how you are doing the business. We tend to think of Investment Bankers as people who visit roughly. When we come out of this, whatever that means, will we do more deals remotely and does interfere with you getting the work done . What does that look like now . Business is m a, and that business has been largely over the last two or three months, and the reason for that is we missing some necessary conditions for a normalized or active m a market. Need Strong Equity markets to support financing for transactions. Marketsreceptive debt because of the actions of monetary and fiscal authorities those have actually pretty much return, as i am sure you report on every day. What is not present yet is a clear direction for the future of the economy. You have seen, for example, hundreds of companies who provide Earnings Guidance normally pull their Earnings Guidance. If a management of a company and fellow shareholders what to expect in terms of revenues and earnings over the next few quarters, how can we possibly expect a buyer to be more prescient or intelligent about that than the manager of the company himself question mark i think we need a little more clarity on the direction of the enough before ceos have confidence to enter into transactions. Clearly, last week, we represented grubhub and sales. There are transactions that have strategic merit that are still underway. Clearly, companies that are not in challenged industry or liquidity challenges are beginning to think more open mind to the about major strategic initiatives. I think there is still a little bit of a way from pulling the trigger on this. I want to thank my colleague for joining us. Stay with us. We will focus on washington. How did may be affecting the marketplace. That is coming up next on balance of power on Bloomberg Television and radio. David this is balance of power. The ever core is still with us. The ceo of ever core is still with us. When the fed started buying corporate bonds, did that really , really blowing up that way . Yes. Say if you go back about there was ar so, liquidity in the debt markets, shortterm and longterm. No companies could finance investment grade. The highest quality companies, when they rolled over commercial, they found difficult to do so. Severe liquidity crisis and the further down the credit spectrum muir, the more severe it was. The interesting thing about what as by being as aggressive as they were, they moree the need for even aggressive action. The fact that they bought treasuries and Mortgage Backed securities initially, they would be involved in from a support point of view to include private sector businesses, municipalities, main street businesses, and certainly the fact that they are there as a ire of last resort, the berkeley ensures that they do not have to use those powers as much as they otherwise would of had to. David does it come a point at some point where it starts to distort the marketplace because it is not the value of the asset but what the fed might do . There is an element of andhing what the fed does certainly, if you are a market trader, a traitor, you do not want to be in the other side of the investment but you would want to be short things that they are interested in buying. That thei do think confidence provided by the fed has allowed more normalized and to get aturn real twoway flow in markets fundamental to the support of our economy. The irony is in this particular institutionscial are in as strong a position as they have ever been. So the fed supporting the liquidity of the market were Financial Institutions did not themselves provided a really important boost to the real economy and to the markets. Does what the fed is doing affect some of the deals you might be looking at . It is driving up all asset prices, almost to the Underlying Company strength. Ralph the hardest transactions to do right now are transactions where a significant amount of cash is involved. Transactionle, the the grubhub transaction, you have to do diligence on both companies prospects. The buyer has to do that on the seller and the seller because of shareholders, are taking the buyers stock, also has to do due diligence. When you have two securities that have been roughly, buying thisffective case the actions of global itetary and fiscal policies, is an easier transaction to get done. I do not think we have greater certainty about the direction of the economy that you will see any large mergers at this point. The ceos you have talked to have any sense we might get a greater certainty about the economy . Isi think the real question that we are clearly in the midst snappedtty significant back in the economy. View is thatceos the damage to the economy is suggestedan would be by this recovery. Weebody described it as could have a check for publicly with a steep decline. Solution nike swoosh. Of deltathe ceo airlines. This is bloomberg this is bloomberg. David this is balance of power on Bloomberg Television and radio. Im david westin. Earlier today, i spoke with ed bastion, ceo of delta airlines, about what the pandemic has done to his business and back. Ed we are in the process of ever covering, no question about it. It will take some time but there are clear signs, the momentum we have is meaningful, and it is continuing to build. We bottomed out in midapril with only 5 of our normal customer load. Today, it is closer to 15 . The optimism is we have tripled over the last couple of months that we have a long way to go yet. I expect that number to get up to 20 in the coming weeks, adding more flying in july and august, 1000 flights a day each month added over the next couple of months. By the end of the Third Quarter, we are hopefully back to 30 of our loads. We are being very disciplined, taking care of our people and customers on the journey, but the recovery has started. David how much visibility do you feel you have beyond that Third Quarter . Does it keep riding at rising at a steady pace or is there a plateau . When will you be back to essentially full usage . Ed there has never been more uncertainty with what we are addressing given the pandemic, economic impacts, changes in Business Travel patterns will also impact the industry. Crystal ball is murkier than normal, but right now, the vast majority of our Customer Base is leisure. There are some good bargains in the air and on the ground, as hotels and theme parks and casinos are offering opening. Most areas are largely closed, big corporate businesses. As they open after labor day, you will see an improved mix of revenue flow, and that will be the next stage of the recovery. David a key element for all businesses seeking to reopen is the confidence of customers that they will be saved. What are you doing, the operational changes you are making to reassure travelers they will be ok on your aircraft . Ed that is our most important task, protecting the safety and welfare of our people and customers. Safety is in our dna. We sell safety in the sky. We have added another dimension to that, safety from the virus, with the hygiene on board our aircraft. For those of you that have not been traveling, you will see a lot of changes and significant improvements in the experience going forward. Masks are required in the airport, as you board, on the plane. I get a lot of questions about masks. They are there not just to protect you but others. One of the most important players of protection me can have is using masks throughout society today. We had distancing protocols in place. We will not board planes more guaranteesll, which the seat next to you, every seat, is open. There are no middle seats being sold. Input electrostatic fogging place before every flight takes off. We have also added considerable amount of time and attention to focus on the Filtration Systems on board. Filters, the highest quality that one can find, the ones that are used in hospitals in clean room environment. Completelys recirculated air every two to four minutes, with 50 of that air coming from outside of the cabin. They are you are breathing is changed out throughout the entire journey. Planenitors on board our that tests the quality of the air, it is the purest air quality that you will find anywhere. It is 10 times better than a building environment or retail. It is really phenomenal. David that was ed bastian, the ceo of delta airlines. We now go to brendan case, who covers airlines. He thinks that by next spring we will be at a breakeven situation. Is that realistic, and how does that compare to other airlines . Brendan it is realistic if you upbeat view of what will happen with the pandemic. If there is a sense that it is coming more under control, you could certainly see continued. Nd substantial gains in flying on the other hand, if you think there could be a second wave currently, we are not necessarily even out of the first wave. But if things were to get worse, you could see people going right back into the shell they were in earlier this year. Time, whathe same little i know a