Transcripts For CNBC Street Signs 20240712

Strong gains we saw yesterday bounce up 2 for the benchmark even higher for some of the major markets like france, germany and italy. All 2 1 2 to 3 the range. Wall street is shot for the 4th of july holiday. Lacking a little more direction, continuing to see a spike in virus cases. We traveled a long way good news on the addition of new jobs to the economy again, and also news around viruses, vaccines to defeat the virus so the markets at this stage just a little bit more nervous around some of the negative news what weve got on those individual boards, this is how it looks for the german stock market, about a 10th of a percent plus thats as good as it gets on the optimism youre seeing on these boards we are down 6 10 on spanish stocks 3 10 on italy and 12 in the u. K. And france it is a reversal in the strong gains we witnessed in the thursday session the sectors, lets xi how its moving about the top has been technology. Retail is positive construction material, utilities, travel, leisure, industrials all marking higher insurance in particular, banking stocks, oil and gas, too, a little bit of weak Energy Basket given weve had a decent bounce in the spot price. Brent has been strong along with w. T. I. More than 5 gains over the course of this week. Lets get into the Airline Space and see how they are fairing easy jet, the bright spots on the board. The weakness in ryan air, lufthansa, air france and you can see British Airways down the most in that session speaking of jobs, the u. S. Added 4. 8 million jobs in june beating estimates a second straight month and marking the biggest payroll in the period. The rate fell more than expected to 11. 1 , the hard hit leisure and Hospitality Industry saw the biggest uptika long with retail and manufacturing. But now the overall unemployment level, that does remain high with 31 1 2 million Americans Still making claims. President trump called the numbers historic adding the u. S. Economy is on track to grow above prepandemic levels we built the greatest economy in the history of the world, and we are now doing it again. And i think well do even better the second time than we did the first time unless somebody comes along and says, lets raise taxes on everybody and theyre raising taxes not only on corporations theyll just go to another country and theyll do just fine but theyre raising taxes on people and middle income people and theyre losing jobs. So you cant allow that to happen that will be all of the incredible job that weve done will go down like that it will be a terrible, terrible sight. It might even be a 1929 situation. U. S. Vice president mike pence also told cnbc exclusively that the increase in jobs was a result of the 660 billion Government Program to give loans to struggling businesses you see the jobs numbers today, nearly5 million jobs created, thats a lot of people that were sidelined and laid off simply because of this pandemic. And we made it possible through paycheck protection for those Small Businesses to find their way through to keep people on the payroll. And now theyre coming all the way back into the work force lets turn to the u. K Boris Johnson has been speaking shortly a short time ago in an interview on lbc radio. These are take away messages you can see the feed coming through. He said were learning lessons the whole time about this virus, which goes to the heart of all the new news we keep learning about coronavirus. The Prime Minister saying we are very much through the worst of the disease so far he says there will be time to look at what we got wrong. My message to people is to enjoy summer sensibly. This as we wait for news around the quarantine being lifted later on today and so far the transport secretary has been talking about those measures, saying that grace will not be a list of quarantine exemptions and the u. S. Will be on the list of highrisk countries. That is a comment around summer and summer travel. Also with the reopening of the economy this weekend, pubs and restaurants will reopen tomorrow so there are concerns people might race out to the pubs and also to restaurants, creating a fresh spike in the virus so warning there from the Prime Minister also around the epstein case, he says his sympathies are with the victims of Jeffrey Epstein he will not comment on Prince Andrew it has to be carried out in the involvement of Prince Andrew investigating the case in the United States. Johnson says no such request has been made from the United States to speak to Prince Andrew. Thats his latest comment on the case lets come back to the conversation and the economy reopening in various parts of the u. K. In particular Callum Pickering joins us. Callum, im not sure youve made plans for the weekend to grab a beer or a meal at a restaurant but were entering this reopening phase now for the u. K. What weve seen elsewhere is concerning a fresh spike in infections, jpmorgan has a tracker where various places where youve seen spending on credit cards for restaurants has followed three weeks later by a spike in infection should we be bracing for that here in the u. K. We just have to be very careful that things dont move too quickly too soon so far the u. K. Like other European Countries has managed to ease the restrictions without seeing a second spike. This is good news. Good as you mention now that the leisure industry, treasury stocks, people in a bit closely is the acid test our base case is at least in europe we will continue to get by with local measures and the pandemic will remain largely under control. But the second wave is the big risk to watch. And when i look at markets, we have here a vshaped recovery in equity markets, but its unlikely that we get quite the vshape in the macro even if things go well well probably see more like a tick shape, an initial spike, and then a gradual recovery. The markets dont leave much room for downside surprises in the Economic Data or in viruses. In that sense im a little nervous. There are a lot of variables around the second wave and how it was treated there was a feeling after the lockdowns we saw first time around they wanted to go back to a scenario like that because it may depress economic activity. Economists have come up with evidence, in sweden where there was no lockdown, consumer and behavior dropped aggressively as well to the same tune we saw elsewhere. So it doesnt matter if we dont lockdown in the second wave. Surely were going to get an economic hit if consumers are concerned. I find the swede curious. This is a small economy, highly integrated with the rest of europe and the Global Economy which did have a major lockdown. So its hard to imagine a situation where sweden could have done well given its small size and given how weak its trade partners were. I dont find that a particularly good example what i would focus on is the fact that we do know a bit more about the virus. Hospitals are better prepared. We have better medicine. We know what kind of measures social distancing measures work. We also have better track and trace. So our ability to manage a second wave is probably better than it was at the beginning of the year when the virus was new. But still, the second wave is the big risk and if we did get major countries putting nationwide lockdowns and again, i would very quickly imagine a situation where the world starts to look like it did in march that is, we worry a lot about credit problems. Cash flow problems, and surge in unemployment but so far so good, we dont see much risk of that happening yet. Crunching some numbers this week talking about the use of masks if there is mandatory enforcement of masks in the states in areas where youve seen a spike in infection, you may actually see the economies prove more resilient were talking about, in this particular case, 5 of economic output would be impacted if you had to shut down the economies again. Boris johnson a few minutes ago spoke about how we are learning from this virus. Do you see a mask wearing as simple as it could be some sort of salvation for the economy as we progress from here . Well, im an economist, not an epidemiologist. Of course, we have to listen to the experts. They make a very good case for using masks. Its also intuitive given the way the disease spreads. If we can get to a situation where we can learn to live with the virus and return economies mostly to normal, that is the best Case Scenario while we wait for better therapeutics, while we wait for a vaccine. Otherwise its going to be very uncertain that if we do get these spikes, we need the local lockdowns. And in uncertainty, in an age of anxiety, that is a difficult environment for businesses, for consumers, for governments to make plans for the future. So it would very much feel like we would be on pause before we get the vaccine. So if we can use masks to live with the virus, of course, thats a good outcome. But its not for me as an economist to say whether thats possible or not. Its a strange line of questioning when we talk about how masks influence Consumer Behavior thats where the pandemic has taken us to an extent. I want to ask you about markets. Clearly we are having these conversations behind the scenes about what sort of investments to make based on how the virus unfolds and vaccines certainly made a big difference earlier in the week to the direction of trade. Politics as well what do you do in the second half as you weigh up all these various elements that could bring better markets, but also pose high risk well, i compare two factors the politics and the virus trends in the u. S. We have the uncertainty of the election. We also have worsening virus trends compared to europe. Virus trends are improving the politics is for european standards, fairly calm European Markets havent run quite as far ahead as the u. S. On a regional basis. Probably we see a bit of value there in europe. But the big question for me when it comes to markets is what is really driving the market . It seems to me a combination of improving Economic Data and it is looking fairly good at least over the last couple of months the continued help from Central Banks and governments with their aggressive policy measures, and the fact that markets are basically working on the assumption that a second wave will not lead to major lockdowns in the u. S if we violate that assumption, then markets will probably take a turn for the worst but even though markets have run a long way, keep in mind markets are forward looking. They are basically telling us the underlying economy is fine and in the long run, we probably get back to the prepandemic trend. I think thats a fairly sensible assessment as long as we avoid the second wave. In the jobs report yesterday, kallum, back to the u. S. Economy, what does it tell us . We both had the reclosure of communities that weve been talking about. Restaurants opened up and then forced to shutdown do you think the jobs are going to come back quicker than many anticipate the u. S. Is a highly flexible economy. It has one of the most widely regulated markets in the advanced world typically if you find a snap back in spending, it usually shows up in the jobs numbers the economy is behaving as you would expect keep in mind in the u. S. , the big driver of the recovery so far is the very, very generous fiscal handouts, income for the household sector actually increased in april and a little in may. So households now have a little surplus income they were locked down for a while, they couldnt go to the shops. Now they are spending that money. Someone has to produce those goods. Someone has to sell those goods. Thats what were seeing now in the labor market the combination of the flexible economy, the aggressive policy is showing up now in the jobs numbers. We just have to hope that that data, which came before the recent spike in the u. S. , doesnt take a turn for the worst as does the case numbers spike in the next few weeks and months a lot of pressure on the data release. Kallum, thank you very much for joining us thank you senior economist. Banks that do business with chinese officials are implementing the Hong Kong Security law has passed the u. S. Senate the house of representatives voted on the law earlier this week, meaning it will now go to the white house where the president can either veto it or sign it into law the u. S. Government has been critical of beijingslaws and has begun implementing the president s directive to revoke hong kongs special status u. S. Vice president mike pence told cnbc in an exclusive interview that the white house will continue to introduce measures in response to the law. The National Security law that china passed and now is imposing on hong kong is its a betrayalof the International Agreement that they signed and ultimately it is its its unacceptable to freedomloving people around the world. And President Trump has made it clear that were going to be modifying our trading relationship and the trading status with regard to hong kong. And were going to continue to speak out on behalf of the people of hong kong and on behalf of human rights of people within china chinas Services Sector has expanded at its fastest rate in more than a decade, rising to 58. 4 that is up from 55 in may according to junes pmi reading. Export businesses showed growth for the First Time Since january. While prices in the sector were ending six months of discounts were going to squeeze in a quick break. Ahead on the show, well shuffle ahead. The french Prime Minister resigns asthma chron looks to reenergize his presidency. Its pretty inspiring the way families redefined the word school this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. Lets move on to one of the market darlings of covid19s story and that is a delivery here the growth doubled in the Second Quarter as people were forced to stay home amid the pandemic. The german Online Food Delivery company set off after a initial decline in the month of april as lockdown measures took effect. Order growth surged 94 versus the Second Quarter last year incredible spike in orders air phrase klm will present a Restructuring Plan according to multiple reports which suggest the proposal will involve 7,000 job cuts the carrier has received a 10 billion euro bailout from the french and dutch governments as two primary stakeholders the french Prime Minister edoardo phillippe has resigned i didnt know the Prime Ministers beard was a thing, but apparently the French Public have been watching this as a sign of pandemic as its ha grows grown, so, too, his popularity reporter youre right. The handling of the crisis has been positive for the Prime Minister hes been a popular figure to the french he was a relatively unknown figure when he was picked as Prime Minister in macrons presidency hes been by his side during the first reforms and protests so far. Now we have seen the Prime Minister has presented his resignation. A reshuffle had been very much in the cards and rumors going around that it would be imminent so especially on the back of the difficult or bad result they had in the municipal election in march, this weekend we saw this green wave in big cities, very successful, emanuel macrons party had pretty poor results in that election. So reshuffle was expected to give a new impetus to the presidency for the last two years of the mandate of emanuel macron so now whats interesting is that we dont really know who the next the replacement of edoardo phillippe could be not just a front runner. Its a crucial decision here for emanuel macron because the direction, the person he picks will be very important for the next years and the potential reelection in two years for emanuel macron whether hes going to go more towards the left and the green road that was successful at the municipal election this weekend or take a new person, an unknown figure like a few years ago. The key he says he wants to give a new path forward the next two years, a new way with a new team in charge. So we will see he said we will know the new Prime Minister in the next few hours, and then there will be further nomination for other ministries ahead also over the weekend. So well see, but again, a very important decision for emanuel macron which could be crucial for his reelection in less than two years, karen charlotte, thank you so much for this for us. Well watch for the announcement later today. The German Parliament has backed the Bond Buying Program it has passed a resolution saying the central bank provided adequate reasoning for the debt purchases. The requirement set by the german constitutional court. Lets go to annetta for the latest some unlucky person has received a whole bunch of paperwork to read through reporter well, actually, yes. They were receiving all the amendments from the years 2015 until now in order to have look at it and to see that the proportionality, that was the key problem with the ruling of the court. Meaning also the ecb looked at the negative side effects of the Monetary Policy. And they were outweighing the positive effects which were clearly dominating compared to the negative effects that has been taken for granted now. The lawmakers are saying it has happened and thats why the bundes bank Going Forward can participate in the Asset Purchase Program which was first launched in 2015 rather, this also holds true for the path the Pandemic Emergency Program which is in place ever since this year, march, remains to be seen because the p. E. P. Has far more flexibility and can do whatever it takes truly in order to fight the negative side effect of the covid19 pandemic. That remains to be seen. Thats not like here the elephant is not out of the room yet, i would say at the same time, the bundes bank is now more accountable to the bundes tar, a new thing in germany. The president of the bundes has to go to the finance committee to explain Monetary Policy to lawmakers in berlin every three months of course, its not like a direct accountability, but there is now a link to the lawmakers thats new because independence of a central bank was crucial here and still is crucial in germany. With that, back to you yes, annette, i know you read the minutes firsthand from the ecb. Imagine sitting down in lockdown and reading all of them together not exactly high on the reading list, right . Reporter entertainment pure. I really feel sorry for that. Thank you very much, annetta the u. K. Will unveil what countries you can travel to without having to quarantine well discuss what that means for the Tourism Industry right after the break. Welcome to street signs f. Youre just joining, im karen these are your headlines european stocks had sudden gains despite u. S. And asia as virus cases spiked well over 50,000. President trump says 4. 8 Million People on the payroll proves the countrys resilience our economy is roaring back its coming back extremely strong we have some areas where were putting out the flames or the fires, and thats working out well were working very closely with governors and i think its working out very well. I think youll see that shortly. He said the sector rebounds, European Data tops continent mao reopen china expands in its fastest rate in over a decade. Fren french president reshuffles the stoxx 600 sees Food Companies growth nearly double in the Second Quarter. We are waiting for u. K. Services pmi to cross just as the Prime Minister stopped talking and defending the reopening of pubs tomorrow clearly the numbers that we see for the july market are different from the june numbers. Final services pmi has crossed at 47. 1, so still contracting. It is just a nudge higher from the flash number 47 flat so its improved just at the margin the june final composite pmi is at 47. 7, and thats also increased slightly so it is certainly improving sign, but lets just see what happens when we have restaurants and pubs reopen and whether that activity picks up. Boris johnson heavy firing with questioning on the radio hes saying, lets not blow it, folks. A cautious attitude hes taking will be adopted tomorrow well see. The pause has been closed so long it will be fairly busy lets get to the European Market action. This is how we are shaping up in the session. Its been a fairly soft start, ive got to say. In fact, the markets giving back some of the early gains. The dax is the only one positive the fmi giving up the ghost and falling into the red with the rest of the i understandices a third down for italy and spanish stocks falling three quarters of 1 a good bit back from yesterday some of the markets trading 2 off the thursday session dont forget there is a lot of optimism around vaccine hopes, jobs being readded to the u. S. Economy and some of this is offset by the covid cases spike in the United States and elsewhere. Foreign exchange markets, risk is off as you can see. The euro fading along with the pound. The u. S. Dollar making some gains versus the swiss and the japanese yen is a safe haven in risk off moments. It is gaining versus the u. S. Dollar so that is where were perched on the Foreign Exchange markets. Pubs, restaurants, cinemas and hair dressers in the u. K. Will be allowed to reopen this weekend for the First Time Since march. Social distancing measures will also be reduced from 2 meters to just 1 meter plus. But Prime Minister Boris Johnson has warned the country is not quite out of the woods just yet and urged people to act responsibly. This after a recent spike in cases put the city on a full local lockdown earlier this week the u. S. Will be on a wait list of high list countries of travel restrictions plan from the u. K. Government. This is according to transport secretary. Speaking to the b. B. C. , he said greece would also not be on the list of quarantine exemptions. Earlier the minister tweeted that he would today publish a list of countries where brittons could travel without having to quarantine 14 days upon their return we are getting some more flashes from Boris Johnson hes been asked if he will wear a mask the u. K. Prime minister says, i certainly would. I have an ample supply so he seems to have a whole stash of masks in the cabinet. Of course, that is interesting because the Prime Minister having already suffered from covid19 now saying he would still wear a mask. And youve seen many World Leaders rally behind wearing a mask in recent days. The evidence earlier if you were listening was pointing out that perhaps mask wearing, if it were mandatory, could replace local lockdowns in the next phase. If you think about the impact of lockdowns tallied up some of the southern countries southern counties across the United States, but there would be a 5 hit to gdp if there was another lockdown so maybe mask wearing is where were at lets push on and bring in tony wheeler who is from Wheeler Institute for business and Development London Business School tony, we are setting up the next phase here in the u. K. Around travel and entertainment so what do you make of where we stand given the amount of covid cases we still have in the u. K. . I think its amazing that the European Union is taking you all on board i think somewhat of a miracle like all of these things at the moment were waiting to see what happens from day to day. You spent a lot of time looking at the future of travel. What we have also heard from a lot of Business Travelers who would typically be on a plane most of the week, theyre just not going to be traveling like they used to malaysia travelers as well also takingstock of some of their previous habbitts. What do you make of the future in travel, how different it will be look, its going to be different. Theres no question. How its going to differ, i dont know theres been discussions of, you know, will the whole Business Travel thing just shutdown because people can meet on zoom and do things over their laptops, their phones, their tablets. Or alternatively, will there be more incentive to be traveling up in Business Class because youve got more separation from other travelers. I think travel is going to be something for the rich, its going to be expensive, and were not going to be able to afford it were not going to be enthusiastic about it. Tony, i cant disagree with you. Weve seen capacity cuts across the Airline Space, many in the discount end of the spectrum, that surely it does drive up costs. Weve seen in the u. K. When you go to book there is uncertainty whether the air bridges are reopening without quarantine prices have spiked some examples, four to five times higher than what it was. When we look back in history, an escalation in price, oil surcharge, how sensitive is the market when it comes to travel the mass market certainly is as i say, there are discussions about whether this is going to push travel up its going to become something only for the wealthy but every crisis weve had in the past, we did eventually get over it. Whether its terrorism crises the u. K. , there was a mad cow disease. How many years ago was that now . Weve totally forgotten about it but it shutdown a lot of rural towns in the u. K i think people will come out of it but i dont think its going to be the same sort of travel that we had before. Were going to be looking at it in very different fashion. Tony, on the channel weve been talking about the rescue of that number of Different Airlines in europe lufthansa, klm has come into the mix. The hotels group seems to be a little more resill yeient travel and tourism has businesses rebounding, that rely on the overall sector performance. What do you think is going to happen, are there enough assistance for Small Businesses . I think there is going to be a lot of local tourism coming back before anything else. The idea of staycations and driving holidays rather than flying places. The intercontinental travel i think is certainly cut off for quite a long phase yeah, its going to be difficult. And i really feel for people in countries where tourism is a large part of the business its one thing if youre in a country where a lot of tourism is domestic. And that, of course, is the situation throughout europe. So much of tourism in europe is local and Domestic Tourism but if youre looking at countries in asia, i think about nepal where people go trekking and there are International Visitors people on safari in africa, theyre International Visitors and that tour sism at the momen is totally dead. What do you think of tackling taxes since the last financial crisis its a good way for governments to claw back revenue to pay down debt in this crisis, were seeing large job losses in the short term particular industries in the consumption side that have been hard hit because of social distancing is it right to rake back over the consumption taxes . I think that for a while, governments are going to have to suffer theyre going to have to accept that theyve got large deficits and hope well, hope that things do turn around and things get better in the years to come. I think for a couple of years, governments are going to have very large deficits to worry themselves about tony, i want to ask you specifically about the cruise ship industry. At the start of this crisis, we saw the spread of covid19 on some of these cruise ships and some of them were blamed for outbreaks in various countries what do you make of the fortunes of this sector it feels you have to be fairly brave to book a seat or passage on one of these cruise ships in future yeah, i must admit im not a cruise ship enthusiast there are places in the world where if you want to go there, you know, i think of antarctica small cruise ships operate there and operate successful they were also hit by the pandemic i think the large cruise ships are going to have a great deal of difficulty getting their business back. And theres also been a dark side to the cruise business. I think theres going to be a lot of people saying, well, cruise ships want to come back and want to be operating theyre going to have to be a little more socially conscious and thinking about the wider world than just keeping their costs down and pack the people in want to pick up on that comment about being socially conscious because theres been a huge focus on emissions from the craft and people decided to cut down on flights. If you look at millennials, many are chasing experiences. They were looking flight after flight on the ledger side. Do you think it will change, do you think the habbitts will be altered, consumer patterns might be altered i think they will, but i think we do focus on aircraft and the Carbon Emissions of aircraft but cruise ships have lots of Carbon Emissions as well they burn a particularly dirty sort of fuel a lot of the time, so there is a dark side to cruise ships there as well basically, if you want to go from a to b, unless you get on a bicycle, its going to burn something. Trains we know are more efficient. If you drive, you put two or three people in a car, its just as bad per person. The thing about going by plane is we go such great distances. Its so easy to get on a plane and go 15,000 miles. 15,000 miles in a car is what we do in a year and a bit it isnt just one trip in one day. Tony, i really appreciate the time today to talk us through the industry and what might be ahead. Thank you for joining us, tony wheeler, Wheeler Institute of development, London Business school a quick look at some of the airlines in trade this morning many of them have been trading weak weve seen in particular reversal for the sector in early trade. Easy jet in the jean, 1. 2 higher whiz air, some of the other Major Players in the sector including those that had bailouts in the past week or so, lufthansa and Air France Klm lets push on to tesla shares closed almost 8 higher after the electric car maker revealed it delivered over 90,000 cars in the Second Quarter, beating estimates phil lebeau has more reporter despite the coronavirus shutting down teslas main plant in california for more than a month, elon musks company sold far more vehicles than expected in the Second Quarter overall, tesla delivered 90,650 vehicles, 18,000 more than estimated. With more than 80,000 being a model 3 or a model y its unclear how many of those models came from teslas giga factory in shanghai. China is the Worlds Largest market for electric vehicles and is expected to be a huge market for tesla. While tesla is on pace to easily surpass last years total sales, it still needs to deliver 322,000 vehicles in the second half of 2020 in order to hit its guidance of delivering a half million vehicles this year challenging, but not impossible. Elon musk has tesla executing at a higher level on wednesday after wrapping up the quarter, musk congratulated tesla employees with a short email, saying, just amazing how well you executed, especially in such difficult times i am so proud to work with you up next for tesla, deciding where to build another giga factory. Possibly austin, texas tesla is also planning its next battery day where the Company Outlines its vision for ev batteries, a key factor behind teslas success. And later this month, or in early august, tesla will report its q2 Financial Results after posting better than expected sales, some analysts are now asking if tesla has a shot at breaking even in q2. Phil lebeau, cnbc business news, chicago. Separately, a reduced pay period was brought into place during the virus pandemic. According to an internal email obtained by cnbc, for more on that, you can check out cnbc. Com ahead on the show, social unrest and a record surge in coronavirus cases in the u. S muddy the waters ahead of the president ial elections well break down how the upheaval may affect the race jpmorgan will reportedly remove terms such as master, slave, and blacklist from its internal Technology Materials and coding amid efforts to address racism within the company. Thats according to reuters. The move would emulate Companies Like twitter looking to eradicate language with racial overtones. It would make jpmorgan the first to do so in the Financial Sector u. S. Unemployment fell in the month of june, but the gap in jobless rates in black and white americans has widened to its largest in five years. Black men facing the highest joblessness since 2011 racial inequity particularly in regards to policing sparked nationwide protests which have continued across the United States since may coupled with a new record surge in coronavirus cases and state reopenings, the country faces a tumultuous path to the november president ial elections joining us now is professor of International Politics at City University jake, nice to have you back on the show thank you i want to start with the polling in recent days at the end of june. You saw the disapproval rating for President Trump start to grow looking at your research in the opening comment, President Trump is in trouble. Tell us why. Well, he was given two political gifts as far as i can see. The pandemic deadly as it has turned out to be was a chance for him to unite the country, to rise above the political kind of factionalism and act as the president of the United States in anemergency he didnt do it and hes in big trouble because of that. His main thing is to try to reopen the economy and on the other front, which is the protests in the wake of George Floyds killing by police, he has failed to actually offer anything in regard to any kind of significant sympathy with the family for the case, and hes actually doubled down and suggested its an issue of rioting and looting and law and order. So i think what hes shown is when it comes to real emergencies, when you need real leadership, he actually doesnt have any of that kind of quality. He talks about the people, but he doesnt appear to know the peoples interests like economic wellbeing and their physical and personal safety. Black lives matter has certainly gained momentum in the United States and President Trump has had some very questionable tweets while the movement has unfolded. What is that going to mean it felt as though he was appealing to the base. Is that going to count come polling day . Will the base carry him across the line or do you think the movement is so great across political lines it will make a difference come polling day in november i think it has already made a difference weve seen in every single state practically every nook and cranny in the United States protests against Police Violence Public Opinion polls for the last few weeks have shown that the majority of americans, including very high proportion of republicans and so on see Police Violence and racism as two really large issues. Whether that will necessarily take them away from voting in november for President Trump thats a different question. But what its done is shaken a lot of peoples support for him. And i think a lot of people are independent. A lot of people are in office in republican states are having to defy President Trump in order to actually sort of safeguard their people and so on so i think it is having a big kind of effect its what its mainly done is mobilized a kind of pent up political grievances which have built up for the last three years or so. And i think, you know, one thing is the personality and so on of President Trump. The second thing is he does have a sort of belief system that the states really ought not be doing too much the state isnt responsible. He isnt responsible in effect, the federal government can step back and the market and other forces can take control. And i would trace that back to Ronald Regans inaugural speech in 1981 when he said government isnt the solution to the problem. Government is the problem. And i think that broad belief that the market is the primary sort of driver of what goes on inside any country, i think that has found grotesque representation or manifestation in President Trump probably the most extreme you could find probably any leader in the United States anyway. You think about even the measures of some of the social media platforms that chase profits have done nothing around some of the policies to stem hate speech. His quite obvious if youre looking for selfregulation, it hasnt happened. I want to ask you specifically around joe biden whether hes done enough to really put himself ahead of the charge when it comes to the markets. They are concerned about him whether he rolls back some of the tax cuts, but also around the movement around black lives matter do you think hes done enough to catch momentum on that side . Well, there are two things. One is President Trump has done a great deal for candidate biden. Candidate biden can almost sit in his arm chair in his basement and reap the ri warewards of President Trumps set of problems in the United States. Second thing on the more positive side, he has reached out across the party, across the opponents he had during the primaries. Hes set up a number of kind of policy or working groups byes whi which has included the left and other parts of the party he has built bridges and moved further to the left or opened the space for the likes of Bernie Sanders and cortez and others and i think their voices are going to be stronger in that administration so it could well be that the markets have something to worry about because there probably will be a greater level of social program but as i mentioned, we go back to president regans speech in 1981 that broad knee owe liberal market consensus has been shaken by the responses of government to the pandemic, which theyve been forced to take. I think the underlying kind of philosophy of the market, i dont think thats been defeated i think it is going to carry on. So i suspect a lot of people are still going to be very unhappy i want to ask you quickly around coronavirus because President Trump at a recent Campaign Rally was saying that weve seen a spike in infections because theres more testing so hes asked them to slow the testing down there was a groan or pause in the audience, not cheering is there encouragement around progression to a final stage and something that suggests we may be getting out of this mess . What does that mean for the fortunes of both candidates . Well, there are so many different labs which are competing we competing with each other if you like to develop a vaccine, and also therapies therapies which can diminish the actual impact of the virus on patients and i think that is going to go ahead. But vaccines, youll know, they take years and years it may well be that there will be something miraculous will develop in the next six to 12 months or so but in the end, i think the number of cases seems to be increasing the economy has been opening up even though some parts of it some states have to roll it back a little bit but i think President Trump has made his bed, and i think in the end he is going to pay a terrible price that price is going to is already being paid by a large number of American People both in terms of their health and in terms of the economy thank you so much for your time today Professor International politics at City University meantime, the number of virus cases in the u. S. Has risen by over 50,000 for a second day in a row. In california, the infection rate has risen 37 , with hospitalizations up 56 over the last two weeks that as concerns grow the long Holiday Weekend will lead to a further rise in cases. We are concerned about the events that are going to play out stateside clearly over the long weekend weve been debating that here in the u. K. As well but to nbc jay gray has the latest that package is coming your way shortly, so reporter a rush to save lives in hospitals across the country as the u. S. Marks another singleday high in new covid19 cases for the first time, over 50,000. States from coast to coast freezing or rolling back reopening plans, businesses and restaurants locked down, many struggling to survive. This is the livelihood of my father who had started with nothing. Came into this country with nothing. And i cannot its too hard to let it go. Reporter beaches are closing for the 4th of july holiday. Summer lines instead stretching from coronavirus testing centers, some for miles. This was all complicated by the fact we have 50 states going in 50 Different Directions we need a national plan, a National Response for this national crisis. Reporter on capitol hill, congressional hearings focus on supplies and a potential vaccine, while President Trump continues to downplay the spike in new infections. The crisis that is all for todays show. Thank you so much for watching im karen cho. Happy friday, everyone enjoy the weekend. On this episode of supercars of the super rich. Check out one mans sterling 20 million collection of wheels that matches his wings. Theyre investments you can enjoy. You cant play with your cocacola stock. Then meet the car dealer whos placing a 5 million bet on this very rare ferrari. I could either make a half a Million Dollars or possibly lose a half a Million Dollars. Next, hop on the superrich toy that takes to the sea like a dolphin and hits the sand like a tank. And get to know the billionaire who loves to drive a 60 million supercar. How could you possibly take that out on the road . The answer is, to me, how could i possibly not