is a broader issue coming out of the protests. i think this thisought injustice in society, not just racial, but economic and otherwise. my favorite australian prime minister of a paul keating, always talked about inclusive growth. i think it is true that a society without justice ends up with no peace. we really have to address these issues as a society. romaine: you just heard the closing bell. we started the month two thirds of the way back from that route. a racing $12 trillion. -- erasing $12 trillion. caroline: the retracement is

phenomenal. ist is also phenomenal whether the bond market is speaking the truth. lowyears, near an all-time in the u.s.. it is quite sensational globally where we see european bonds completely negative. this desire for high-yielding assets continues. we want to take it back there for ron temple. just your thoughts on these levels we are seeing not only in stocks, but in the bond market. i do think the really important point back to the fed liquidity, i was looking back at fedweekend of march 25, the balance sheet. we should all be mindful that the fed is decelerating its purchases and that will have an effect in my view on yields and

different parts of the market. we need to be thinking about the supply of financial assets as the u.s. deficit and other national budget deficits grow, there will be a large amount of supply in the sovereign debt markets. in may, we saw a record high issuance of high-yield debt. just that month, not every month. there is a lot of supply out there and people need to be discriminating. in every cycle, there is a point in time that you want to buy those phoenix from the ashes stories. i don't think that time is now. you want to focus on companies that cannot only endure the cycle but when market share, so they have time to go out and invest. romaine: when you talk about the supply, talking about it on the

sovereign side. when you talk about the issues here in the u.s., it has been relatively well received by investors. when you look out into next year and we are still getting these big sales from treasury, and you combine that with the fact that we are anticipating relatively large sales from japan and other nations, where did we get to the point where they push back on some of these bottom of the barrel deals? my expectation is that central banks will play big role in this. i think as you start to see that there is less appetite in private markets for treasuries, i think the fed will have a legitimate reason to come in and accelerate those purchases. my expectation, whether the fed and ecb call it yield curve control or not, they will engage in some form of yield curve control.

that is what i am looking for. we have seen some steepening in the yield curve. i think that is a good sign. i think it implies that people think things are getting better. i don't think the covid story is anywhere near being over yet so i think there is still room for that to head back in the other direction caroline: -- other direction. caroline: we see the 10-year selloff. we thank you, ron temple. that does it for "the closing bell." "what'd you miss?" is next, where we will be looking at those u.s.-china trade tensions. ♪

♪ from bloomberg's quarters in new york, i am caroline hyde alongside romaine bostick and taylor riggs. s&p, andthe dow, the the nasdaq further retracing some of those losses. caroline: take to the streets. in citiesrupted around the u.s. and the world after the death of george floyd at the hands of a police officer in minneapolis. ofna pauses the purchase u.s. agricultural goods. what this means for the phase one trade agreement. shows --igan drugs

what is for more on happening in the markets today, we want to bring in taylor riggs with the breakdown. theme ishe continued the disconnect between some of the economic data we have seen and the continued resilience of this market. it is shown know better than here inside my terminal, which shows the s&p 500 gaining relative to the stocks index, which has been lagging, in parts due to some of the heightened trade tensions. one of the major reasons why it has been one of the big underperformers today, the only major average to end in the red. clearly, the resilience and optimism of the essence be, a big out performer. flipping up the board as we talk about u.s.-china trade tensions. soybeans, corn, wheat, and pork. for the most part, those agricultural products falling after china said they would delay and even cancel some of

these crop purchases. for now, it looks like some of these markets are taking this in stride. they cannot be ignoring some of the trade tensions we continue to see between the u.s. and china. for more on the escalating tensions between asian and washington, i want to welcome a senior fellow at the peterson institute for international economics and an expert on the chinese economy. he is a member of the council on foreign relations and on the editorial board at the china review. great to have you here on the program. why do you think the markets have been so disconnected from some of the heightened trade tensions we have seen? what does china pulling on some of those agricultural products tell you? >> i am not an expert on the market that i think trump used a lot of strong language friday

and the rose garden against china. they were almost inflammatory. but they were very short on specifics. a lot of discussion, we might do this, we might do that. nothing concrete was announced. announcef they do something concrete, there might be a stronger reaction. you are an expert when it comes to hong kong and the ramifications there. i am interested in the latest note you put out, highlighting why, if we move back from special treatment of hong kong, it actually does not mean very much for the hong kong or the chinese economy. talk us through your thinking. nick: one of the things that president trump mentioned was the possibility of taking away hong kong's current trade

status, where it is treated as a separate territory and gets the most favored nation tariffs. subjectat was, we will the hong kong goods to the high tariffs that we charge china come up to 25% on a fairly broad range of goods. hong kong only benefits two-way -- benefits to a teeny extent because they only export a small amount of what they produce to us. hung on busy service economy. of gdp. what we import from china is less than $500. of 1%.ne half imperceptiblean effect on the chinese economy.

thisne: there is just general idea, general uncertainty that either doing this in hong kong or mainland navigate the you whether thereout will be some sort of detente, under the current administration or a new administration. errori think this is an ofextorting -- an era extraordinary uncertainty. even with a new administration, a ferry is one, it would take a while for them to decide how they would deal with china, whether they want to pursue the decoupling policy that seems to be the order of the day for the trump administration, or try a different approach. i think it will be a very rough next six months to a year.

lardy, expert on the chinese economy. yield, brookings institute. between with tensions beijing and washington, there are about 1300 american companies operating in hong kong. the american chamber of commerce in hong kong about concerns. >> everybody is starting the week in hong kong feeling somewhat sensitive and concerned. so many questions unanswered. huge cans we had two of were in terms of announcements. first, the national security law being passed by beijing. then, the u.s. saying no longer view hong kong as autonomous enough to merit special treatment. that opens up such a large number of questions on both

fronts. pongis the future of hung going to feel like for businesses. which side of that, the national security law and the uncertain she that brings about? and special treatment for the u.s., if that goes away, what would that mean? >> are they rushing for the exits? a rushe are not seeing for the exits at all. we are seeing people first digesting the news and second of all, looking at their footprint in hong kong, thinking about whether that on to change, reevaluating. first of all, china is a very important market for many american companies. tog pong is also connected southeast asia, which is an increasingly important market. many american companies have been in a hung pong for many

years. it is a positive experience, an excellent place to do work. it is just that in the last year, no one seems to have been able to catch a break between the protests and the growing tensions with china. it will take some time for people to digest the impact. what we really hope is that we will hear more details from beijing on this national security law and what this will mean in terms of specifics. washington,om actual specifics in terms of how this special trade relationship and economic relationship could actually be unwound. it is not like flipping a switch and it is done there are many, many aspects of this special economic relationship. >> is there much consultation going on in hong kong between business and community leaders,

say pro-democracy act invests about whether there could be any confrontation with beijing on how this was implemented? internationalan business community. we will senior member of the government later today with their explanation on how they see the national security law unfolded. it is our job to really advocate for business in hong kong. to go around lobbying , it is a little bit tricky. we don't want to go there. we want to see if there could be any type of action the hong kong government could take.

to bring some more light to what this national security law would. we have not heard anything yet. the hong kong government is simply reassuring people in hong kong or trying to reassure international business that there will not be any changes. but there are no details there at all. romaine: tara joseph, the president of the american chamber of commerce in hong kong. this is bloomberg. ♪ erg. ♪

romaine: protests going on across the u.s. and now really across the world, all sparked by the killing of george floyd in

police custody. kevin cirilli is standing by right now with the senator from minnesota. by senatorre joined tina smith. i want to get to the breaking news because an independent autopsy found that george floyd's death with a homicide. asphyxiation by sustained pressure. what does this mean for the judicial system as charges are brought against the trader of the thing -- the perpetrator of this death. who smith: i think anyone watched the video could see what was happening, and active inhumanity of one person against another. it will add to the evidence we need in order to hold these four former minneapolis police officers accountable. as you know, the state attorney

general, keith ellison, has been tasked to be the prosecutor of this case. i believe that keith will pursue justice relentlessly. that is what we need to do, seek the truth and get accountability. what has been going on in minneapolis, we have seen the scenes playing out across the country, violence playing out just outside of the white house, what has been going on in new york state? -- in your state? had smith: last night, we largely peaceful protests, although we had 150 protesters arrested for breaking their curfew. i have seen in my city, not only in minneapolis but in cities across the state, people peacefully protesting, lifted up their voices, expressing their grief, anger, and demand for change. minneapolis,een in

this dangerous and really destructive rioting and looting. and looting and rioting groceryurning down the stores in the community where people only have one choice. it is burning down these beloved community institutions. putting a stop to that violence has been important. we have had two nights of relative quiet in minneapolis and saint paul. i think that will allow us to move forward the actions we need to take to address the systemic problems in our community. kevin: i was struck by the family members of george floyd, who came out and called for peaceful protest. what role do they play here?

sen. smith: the voices of george floyd's family are voices of such integrity and power right now. brother,t was george's who went to the place where george lost his life on the corner of 38th in chicago, pleaded for peace, pleaded for justice, and said we need to keep his name ringing, which was such a beautiful sentiment. i think that we always need to remember something that might colleague cory booker said, that is not just about getting rid of the violence, it is about having justice. you have to have both of those things. that is what we are seeking in minnesota right now, we are seeking justice. yesterday on cnn, susan

rice made suggestions that there could be foreign actors that are perpetuating some of the violence and that they are organized by groups like antifa. based upon your conversations with local and state law enforcement officials, do you believe that there are other factors at play here besides just the largely peaceful protesters? the public well, officials in minnesota that have been addressing this rash of rioting and looting tell us that there is evidence that there are some number of people from outside of the community that are contributing to this. whether it is on the far left for the far right, that there is a large number of vehicles in our community without license plates or with false license

plates. commissioner harrington of the department of public safety talked about stopping a car with license plates that were expired and the man immediately tried to douse the car with gasoline, which the commissioner said is not a normal pattern of behavior if you are stopped. i think there is no doubt about there being some of that. how much of it, how pervasive it is, i don't think we really know. the most important thing is that we need to be keeping the peace and allowing us to get justice here, and addressing these systemic challenges that have been so pervasive. about theant to talk systemic challenges. there has been so much talk about a potential next round of economic stimulus. do you think it is important that included in that, that there be some type of structure -- structural change here inc.

in that type of legislation? there are things that we must do in congress and also at the state and local level. one thing i have called for is that the department of justice civil rights division should do an investigation of the patterns of practice of the minneapolis police department to root out this culture of violence and excessive force. you are many times more likely to be targeted for -- targeted with excessive force if you are a black person then a white person. it would allow us to get some accountability. we have these challenges in police departments all over the country. senator tina smith, i appreciate your time on what is no doubt a busy day for you and your state again. withine: kevin cirilli

senator tina smith of minnesota. gilead's drug shows a pretty small benefit. shares drop over -- drop after a phase three study shows only a moderate improvement. this is bloomberg. ♪ ♪

taylor: right now, i am taking a gilead, stocksof trading on a lot of hope. today, the company announced that a study showing an improvement in covid-19 patients did not reach statistical says it -- statistical significance. the five day regimen did show some benefit. frankly, a lot of analysts have been critical of what type of opportunity remdesivir could bring to gilead.

makingwould be commercial revenue from the product as soon as the third quarter. on the chart in the terminal. for more, i want to bring in robert, who covers this company for us here at bloomberg news. what did this show us about the efficacy of remdesivir and frankly, the 10 day versus the five day treatment? caroline: i think we have a technical issue here at the moment. taylor, you are taking us through some of these breakdowns in the movement. it is worth remembering the volatility of this stock. brought down the whole of

health care. this is a sector that lurches in one direction to the next. taylor: you are right. i think the markets in general have been focusing on hopes of a vaccine. the stock had shot up when people thought maybe this was it . some analysts on the street have been may be skeptical for lack of a better word about the profit and the opportunities. we hear that may be sales could a billion dollars. they said they would give out some donations. after those donations, you wonder about the opportunities the company could have for sales, for profits. that is where they have been asked, on the opportunity this -- they have been mixed, on the opportunity this could bring for gilead. a lot of questions on the

efficacy of these vaccines and what this looks like. talked to a lot of folks on this program who have talked about just how difficult it is going to be to get a vaccine like this or a treatment out. ae idea here that this takes month if not years under normal circumstances to be developed. again, making sure not only that this stuff works but is safe to work is something that will take time. we saw that investors may have gotten a little bit ahead of themselves with regards to the potential. let's get a quick check of the latest business flash headlines. there could be a change in perception of the therapy remdesivir. it showed only a limb -- only a limited benefit in a large trial. barclays, about 700 workers will

begin returning to their offices in the u.k., the u.s., and in india next month. and of them are traders others who cannot work from home. barclays says the rest of its employees will still work at home until at least the end of september. in new york city, the finance industry may not recover from the coronavirus for six years according to a new study from the software firm think iq. the new york area has lost about 8% of its finance jobs this year alone. that is your business flash update. we are going to go from our business flash to the bloomberg first word news. president trump today urged states to crackdown on protests in the aftermath of the death of a black man at the hands of police in minneapolis. audio of news obtained

the president's conference with governors and law enforcement. pres. trump: you have to dominate. if you don't dominate, you will be wasting your time. they will run over you and you will look like a bunch of jerks. you have to arrest people and try people and they have to go to jail for long periods of time. the president criticized the governors, saying that most of them are "weak." bloomberg has learned that opec and allies may extend the cutbacks by up to three months. the existing deal calls for curbs to be eased starting in july. prices are now around $35 per barrel, below what most countries need for government spending. the head of the world health organization said he wished the collaboration between the health body and the united states would continue after president trump

said last week that the u.s. is determined -- is terminating its relationship with who. >> the u.s. government and its people's contribution and generosity toward global health over decades has been immense, and it has made a great difference in public health all around the world. romaine: the united states is the largest source of financial and it'so the who, exit is expected to significantly weaken the organization. new york city will have a curfew 11:00 p.m. until 5:00 a.m., starting tonight. this comes after weekend protests over the death of george floyd led to looting in the nation's most populous city. 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'm mark crumpton.

this is bloomberg. ♪

onaine: some breaking news money transfer company western union, apparently making a bid for its much smaller rival, money gram according to bloomberg reporting citing a person familiar with the situation, no final decision has been made. it is also not clear what price has been offered but according to our reporting, western union did actually make a takeover offer. caroline: very different valuations, these two companies.

worth $166only million. casting your mind back to 2017 when the chinese conglomerate tried to buy money gram but got lyrical pushback. --t a rally we are seeing but got political pushback. romaine: money gram, in its previous affiliation was associated with the greyhound company. but they have had sort of diverging paths, diverging fortunes. bear goes into a potential liquidity issues. romaine: what are we doing? there we go. they give me little instructions in my ear. supervisor, backing a $9 billion bailout. the ecb vice president spoke

exclusively with bloomberg about the negative impact. forf course, potential distortion is much bigger when you enter into recapitalization, which is why of course the strings attached are much more serious. bonuses are cut. there is no share buyback program. and of course, potential distortions of competition as such in the market. perceive that the businesses will pay back the bailouts, the loans, however you want to phrase it? what is the vision you have for how they will pay these huge loans back over the years? >> i don't know if anyone knows how the airline industry will develop. i think we will see a lot of innovation in that industry in

order to both get people back to flying but also to green the entire industry. they will come into the recovery with debt. this is of course why also recapitalization comes into the picture. will strengthen some companies, with substantial capital. this is why we need to introduce also remedies to the distortion of competition. slots live tons a case, being made available in both frankfurt and munich. lufthansa deal be seen as a guidepost to remedies you see in other cases when equity is involved? >> that goes without saying. we have an obligation of equal treatment. the the of times a case is the first case of recapitalization.

if he cases more than 250 million euros, in order to look into whether or not competition is distorted, if it is a company with market power. in the lufthansa case, we are indeed talking about a company with significant market. this sets a precedent also in other cases. axt is the state aid almost done deal or do you still have to agree with other things's with the german government? together, in capital 9 billion euros, we have given comfort for them in order to move on, and now we will go through the formalities of the decision. we 100% make sure that understand the capitalization of air france, or the netherlands.

streetat also be conditions like slot divestments? >> the airlines you mentioned, that is a different category. what they get is liquidity. is it lending that will have to come back? if they come back, recapitalization, of course they will be in the same category that lufthansa has been. >> what would you do with alitalia? under what conditions could the government inject liquidity into this company that was bankrupt for the pandemic? >> that is a special case. alitalia was in difficulty already before the corona crisis broke out. that is a very specific case. obviously, we are in close contact with the italian authorities.

vostro -- romaine:. we were just speaking with -- has its best euro monthly advance this year and currency traders have change their tune. cautiously optimistic. joining us, stephen englander. to can the euro continued sustain itself? it is a story of dollar week is today. but, how much is pending on thursday and whether or not we get more stimulus from lagarde? the don't think stimulus is key issue. i think the fact that they committed themselves to fiscal policy, which is very different than they managed to break through the logjam they have had for years. buying more government bonds, we think they will, but they may not announce it. monetary policy is a surprise, what is driving the euro, i

think, is the prospect of fiscal policy. inrdly enough, that will, 2021, when there is expectation that the economies will be rebounding anyway and this will be on top of that. look at when you relative strength in the euro, obviously we have been here before. he reach that 110 level. but it always has turned out to be a little bit of a head fake. i wonder if we see this peel back relatively quickly once we get a little more clarity? the last 18 times we eurotried to buy into strength, we did have rates at zero for as far as the eye could see. fed in sorthave the

of asset buying spree that would shame any em countries. the policy orientation really shifted. the u.s. is no longer the out performer. in terms of policy stances, it is actually kind of aggressive in a way that, risk asset usually scares the market, lots of fiscal and monetary at the same time. >> really interesting looking at the bloomberg today, we have seen outperformance in the g10. but the british pound up there as well. stephen, i want to get your take which brexit cliff edge, edges ever closer once again. we are distracted of course by more important immediate concerns of covid and ramifications on the populations. but what are euro versus the pound and what you see with that

relationship? steven: the pound, in terms of the short positions left in the market, short found is one of the biggest ones out there. even as the short euro position is being eroded. i don't think that the risks have any and tension of ofmitting -- any intention committing political suicide. will come tothey some sort of arrangement. it may be messy. i think ultimately they will come to some sort of arrangement. romaine: with regards to the broader asset space, once you get beyond just the euro of the dollar, and i guess some of the more common pairs, is there something you have been keeping your eye on to give us a sense of i guess what market sentiment is and what the pace of economic

recovery is? of timei spent a lot looking at how much the federal government is putting out on unemployment. that seems to have leveled off. to suggest that maybe a little bit more stability in labor markets, inflows and outflows. as a short-term indicator, that is one of the ones i looked at. obviously, like everyone else, continuing claims is one i look at very closely. caroline: what about just straight up the bloomberg dollar index. will we continue to see this stretch, for the remainder of the week, for example? will risk is sentiment change on the dollar, do you think, particularly with this sort of tension in the streets of america and indeed globally? steven: i think there are

certain things that the market is paying attention to. european fiscal policies, the global stimulus being put in place, both fiscal and monetary. the market is not paying much attention to the u.s.-china disputes and they are certainly not paying much attention to the social tensions in the u.s. that may turn out to be a mistake. but so far, the market has been -- sideh focused on the of things. vostro always great to -- romaine: always great to get your insights. we will be back in a moment. this is bloomberg. ♪

for caroline'sow favorite segment, where we check in with joe weisenthal down

thereon 6th street in austin, texas, checking out all the nightclubs. what have you been keeping your eye on? joe: i have been doing channel checks on the degree to which people are returning to life is normal here. in the meantime, it is going to be a really busy week of data. the first week of every month is a busy week of data. the jobs report on friday. in the meantime, ism today. it was not great. employment, ism 27.5 last month, up to 32.1. but the important thing to remember is that anything below 50 is contraction. thessentially, the state of economy in may, at least according to the surveys, was contraction at a slower rate, which i guess is something.

on the other hand, the economy is still shrinking and had very depressed levels. reasone: i guess not a to start ordering in those frozen margaritas that i hear they deliver so well in austin to your home. the worldwideut viewpoint here as well. in eurozone manufacturing, still well submerged but starting to see signs of growth. do you think in any way the economic hopes underpinning the market shrugging off tension in the air, whether it is on the streets of the u.s., streets of the world, between the u.s. and china? europe atu mentioned, a low but also well above last month. something to bear in mind about the amount of numbers or any of

these survey data, they can resemble a v. but you get a situation where the live look is straight up, and that means worse less severely, not really what people are looking for when they hope for a recovery. still pretty mediocre overall. but if you look at the economy, there was this point about a month ago were a lot of people were saying, everyone sees a v but i don't see one. people are clearly thinking that something resembling a v-shaped as possible. the economy has been reopened. and, we have not really seen like a second meaningful breakout of the spread of the virus anywhere that is open. the hope is that, ok, we can do this at least for a month, month

and a half without a major spread, then maybe we can continue to open up the spread without a second wave. caroline: really good point and context to keep in mind. that is all from "what'd you miss?" technology" is next in the united states. romaine: have a great evening. this is bloomberg. ♪ [ sigh ] not gonna happen.

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a kohler walk-in bath provides independence with peace of mind. ask about saving up to $1500 on your installation. to "bloomberg technology." rattle theprotests united states, markets rally, showing the disconnect between wall street and main street. despite some businesses and communities in ruin. go intocurfews will effect in many major cities across the united states in preparat