Spell the end of obamacare. Clinton spoke with the bloomberg number commented interview for todays bloomberg equality summit. Having this seat field right now as opposed to waiting until we know who the president is could very well mean the end of the Affordable Care act and the loss of healthcare for millions of americans who have suffered from covid19. Mark secretary clinton calls an unfortunate display of partisan power. C said she would not favor a strategy being discussed by some democrats to increase the size of the Supreme Court to dilute the conservative majority. Step tood that idea a far. You can watch this and more right here on Bloomberg Television and you can listen in on Bloomberg Radio and seymour on bloomberg see more on Bloomberg Live go. 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. Vonnie it is 1 00 in new york and 1 00 a. M. In hong kong. Welcome to bloomberg markets. Here the top stories. It is day two of testimony for fed chair jay powell as he reiterates the need for more government stimulus to lift the u. S. Economy from the recession. Co will join us to talk about the unveiling of the brands suv. Starts latehnson stage human trial of a covid19 vaccine that could work in a single dose. We have all of the details. Lets get a check of the markets. Stocks lower on warnings from the Federal Reserve officials. We have the nasdaq 1 down. It is recovery just a little bit. Crude oil is up about. 8 . 40. 11. Gold keeps deteriorating. It is down to 47 per ounce. I did want to point to the chinese yuan. It is the biggest rally since 2008. They have tried to save the rally a little bit. 680. 91. At warnings from officials on the need for more stimulus to fuel the recovery. Bloomberg spoke with the vice chair. About 11 million jobs have returned but there is still a deep hole. We have a very high rate of unemployment. We have a lot of Small Businesses suffering. Additional support will likely be needed. Vonnie he is one of many this week talking about it. Joining us now, Macropolicy Perspectives president and court cofounder, julia coronado. It seemed like the Federal Reserve is desperately hoping that washington does a fourth round. Julia fed officials have been clear on the limitations of what they can do. They can keep rates at zero. They can continue to support markets with quantitative easing. They cannot address the Public Health issues and they cannot get money directly into consumer and business hands. They have been almost begging for stimulus and meanwhile i think what we are seeing with the death of Ruth Bader Ginsburg only reduces the likelihood we will get additional stimulus and it seems like a remote possibility that we will get legislation before the election. I think officials see the recovery very much in danger right here. Vonnie what exactly happens if we dont get more stimulus . Julia what we have been seeing is the data is in its early days and it is hard to get a gauge on. What they seem to be reflecting is a loss of momentum. We dont seem to be in danger of double dipping right now but we have seen a loss of momentum in both the official and higher frequency measures of spending and hiring and that comes with the fading of the physical support. They are dealing with a lot of support, it was extremely effective early on and then it sort of stopped sometimes and dime. D on a time there losing momentum as chair and vice chair highlighted at a time when we still have millions of people unemployed. Close to double digit unemployment rate. It is not ideal, obviously. The recovery is not selfsustaining. Vonnie the Economic Indicators that show the economy and the consumer in particular are holding off. Now . Re they right Unemployment Benefits have finished, the extra 600 per week. We are not getting any the sheet any additional ppp. Jobs are not widely available right now. Presumably people have been going through their savings. Thandid not even have more 400. That was a Federal Reserve piece of data we have from before the pandemic. Is sort of in the eyes of the beholder. The numbers are still huge, the gowns and the rebounds were so huge that they are hard to put in perspective. If we look at retail sales in august, they were basically flat after huge rebounds earlier in the summer. Hiring lost momentum. Still did numbers, but these are big numbers after almost 25 million job losses so we are still millions down. ,o see that loss of momentum again, we are still waiting for the september report to see where that goes. Some of the measures suggested that hiring is flattening out. Initial jobless claims still continue to be at historic highs suggesting that layoffs are ongoing. These are not shut downrelated layoffs. These are likely to be permanent layoffs. I personally do not look at the whole spectrum of data and say it is rosie. I would say it is relatively resilient. As you mentioned, a lot of that , still supporting things, but it will fade away. The question is is the recovery selfsustaining and we have hunkered down into a socially distant mode of operation in the economy and that limits our ability to restart a lot of things. We are not going to see the Critical Service sector go back to normal until we get the pandemic under control. Efforts havealth been scattered and all over the place. We see that and the difficulties in getting universities and schools up and going in the fall. Some have been very careful and methodical. The university of texas is one of those. Others have had to shut down or go back online because they did not carefully take care of the Public Health aspect. That is the unusual part of this. Public health is front and center and has to be if we want to reopen the economy. Vonnie what is your base case for gdp through the Fourth Quarter and into next year and what is your worst Case Scenario . A big number four q3 is essentially locked in given the rebounds we saw earlier in the summer. We are respecting Something Like 25 to 30 annualized gdp growth in the third quarter. The question is around the Fourth Quarter. Right now our forecast is for a still pretty decent but much slower 4. 5 . That is factoring in some of the lost momentum we have seen. We are not expecting a stimulus package before the election. And then whether we get more and what we get will very much depend on the results of the election. The forecast beyond the Fourth Quarter is really uncertain, unusually uncertain and usually as a forecaster i like to say that the economy is far more at noon to to belittle more immune to political development. This time i think there was a direct link between what we get and the outcome of the member election. Vonnie the fed chair and treasury secretary asked about particular sectors of the economy and whether there will be targeted help for sectors. For example, commercial mortgagebacked securities. Do you see any part of the economy or the marketplace getting into trouble . Spots, wel, trouble are watching state and local governments. They have been hit with large budget crunches. There have not been any assistance forthcoming. They would have to engage in a round of belttightening and layoffs and that could really damage that sector of the economy. Chair powell has essentially admitted that it is hard for them to get at that sector through some of their credit facilities. Actually president rosengren today expressed a degree of frustration that the big banks have not signed up for the fed main Street Lending facility which could get at a broader range of sectors. Up withe seen only pick some of the smaller regional banks and very moderate pickup overall. They seem to be signally that if the economy actually does assemble, that facility is wellpositioned to help the sectors who experience renewed distress. Vonnie thank you for that. Much appreciated. Julia coronado, Macropolicy Perspectives president and founder. Coming up, we hear from Hillary Clinton at the bloomberg equality summit. What a rushed seat could mean for the economy. This is bloomberg. Mark i am Mark Crumpton bloombergs first word news. A grand jury in kentucky has indicted one Police Officer on charges related to the death of Breonna Taylor, a black emergency medical worker who was shot multiple officers entered her home using a noknock warrant on march 13. Powell wasn jerome on capitol hill today answering questions from lawmakers over how the fed helped americans versus the markets over the handling of the pandemic. Chairman powell continued his call for more fiscal stimulus. I do think Small Businesses would benefit from more ppp support. There is wide agreement on that. Mark additional congressional stimulus talks had stalled since early august with both Political Parties about a trillion dollars apart in their offerings. New york city mayor bill de blasio is expanding furloughs to save the city 21 million. Andge earlier managerial other employees must take mandatory days off. New york city faces a 9 billion shortfall through june 2020 1 june, 2021. De blasio said we are forced to make these difficult decisions face a massive budget insight. With no help Ruth Bader Ginsburg is back at the place where she spent 27 years. Her casket arrived at the Supreme Court this morning. The remaining eight justices were together for the First Time Since the pandemic began in march. Thousands of people are to pay their respects to Justice Ginsburg as she lies in repose. Aide saysuse President Trump will pay his respects on thursday. Global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Greg fly from toronto, i am greg bonnell. Vonnie i am vonnie quinn. Here are the top stories we are following around the world. Trudeaus economic recovery plan. It the canadian Prime Minister is said to outline the governments primaries priorities. The third annual bloomberg equality summit. Ceo Jim Fitterling and what organizations should be doing to create change. Stagen johnsons late trials. Shares higher as the Company Announces it is beginning phase three trial testing for a oneshot vaccine. The latest. A look at the markets, greg. Greg a bit of a down day out there now. Nothing too dramatic. Money has been made it cheap by global central banks. There is no other alternative but to play in the stock market. But then you get days, as we powelld, with jerome reminding us why he made many cheap. It is the economic challenges the Worlds Largest economy still faces to get out of the whole of the pandemic. The bounceback has been sharp, perhaps sharper than expected, but Jerome Powell warning there is a long road ahead. The s p 500 down about. 75 . The nasdaq down a little more than 1 . Seeing some money move into the u. S. Dollar, a safe haven play. That took off the other day as well. U. S. Canadian as well showing strength, the buck showing some strength against cad. We have our eye on the Canadian Dollar because the trudeau government is going to lay out its legislative agenda. This is how they plan to deal with not only the challenges of covid19 in the here and now but try to support canadas battered economy and get it growing again once we get to the other side of this thing. s get to rebecca yang rebekah young. I want your take on what we could hear. Obviously there has been some hints and rough agendas laid out, but there is anything in there immediately they could move a market . Rebekah i think what we have seen so far in the last couple of weeks has been these policy signals that tend to be very big are not moving markets. It is the actual money, the fiscal numbers, when they are announced, when they are hard, that have the potential to move markets. Onsaw when minister freeman day two came into the job, there was a selloff when she announced almost 3 billion in additional fiscal spending. Signalse been sending since then that more spending is to come and i think we will see more direction, more signal that they are going to spend more, but not hard numbers. I think that will really have to wait for a budget. There certainly will not be any surprises in the sense that markets have already priced in the additional fiscal spending coming on the canadian side. Vonnie will the Prime Minister outline if there are particular sectors that will get more help or targeted help, rebekah . Rebekah we know there will be three themes. The first is continuing to tackle the pandemic. This will focus on the health side. Start agreements with provinces. Those will be protracted negotiations. I think the bulk of the speech will be about what were doing now, but not necessarily big money right away. That will come down the road when provinces are negotiating money for help spending down the road. Health spending down the road. The second package we will hear about our helping canadians. Are helping canadians. That has been a bit of a bias so far. I think the focus today will be on jobs. We already know that the income sir has beenram or expended extended in a bit of a modified form, less generous, but we have a years sideline now already on that. Site line now already on that. What will the Program Look Like as we experiment with this new socalled crb . I do not think we will see sector specific support. They have not really targeted specific sectors yet. The third bucket we will hear about but has been sort of downplayed in the past couple weeks are what they are calling resilience. It has been a rebranding of the Green Recovery that had been touted even as recently as three weeks ago. We will see a whole mishmash of things, infrastructure, retrofitting buildings, support for electric vehicle infrastructure, and that will dovetail well with the announcement we heard coming out of ford this week. Again, we will not see concrete details on that. In a number of those things will involve repurchasing funding that is already in the system. Repurchasing funding that is already in the system. Greg when it comes to the cost, we are in a deficit up to three billion,lion 380 significant for canada. We are in the thick of it. How much more physical capacity do they have . Rebekah canada does have come at the federal level, a relatively enviable net debt position even after covid. It is all a relative game. All companies countries have seen their debt levels jump as a result of covid spending. The latest projections from finance canada have net debt around 49 of gdp. It is likely about low 50s now. We think they could reasonably take it into the 60s, provided that it is reasonable spending, so either strengthening longterm growth or temporary. I think the one area that would be concerning if they allocate too much additional spending would be on creating structural deficits, so ongoing pressures. I think they will be cognizant today, in the speech. Generally, in the speech, you do not see numbers, so we will not expect to see numbers, but when it comes to the budget, that is still months away. At least a few weeks away. A lot can happen in the interim. I think what we are learning even in the last few days is that we still may need more temporary spending in response to a second wave, so we can expect to see some degree of fiscal prudence in the sense that we need to save a bit of our ammunition for tackling a potential second wave. And on that point, vonnie i was curious if there would be a conservative opposition response to whatever the Prime Minister says. Rebekah i think everything will be in there. It will be hard to vote down this speech. In particular, they will really on another party they expect to vote this down. There are things in there that will check the box for the nvp, so i think this will defer any risk of alexion. That will come at budget time, when there will be in expectation to see more concrete details around what is promised in this speech today. Vonnie thank you for that. That is rebecca bank rebekah young, scotiabank. Society has become more polarized and companies have the response ability to set the tone for more civil discourse. Jim fitterling. This is blumberg. Vonnie this is bloomberg markets. I am vonnie quinn in new york alongside greg bonnell in toronto. News on the electronic vehicles space in the past 24 hours with a volkswagen unveiling its all electric suv on top of teslas battery day tesla battery day. Itging into tesla and what means for our company of the hour. Markets are not loving with a herd. The batteryutting pack at the center of the economics of electric vehicles. To 40 ofp around 25 the cost of manufacturing. Well we did get innovations, they want to use things like dry electrodes, as opposed to liquid electrodes, which are more efficient. They want to start manufacturing their own cells. A contributorsuch to the runup of teslas stocks that there was some disappointment because not all of these innovations are things we will see next week. It is all part of a bigger roadmap for tesla toward ha lving the costs of its battery packs. We know they want to make their vehicles affordable to the masses. It is a longstanding ambition of elon musk to make evs