analysts, companies, strategists, have a great sense of what earnings will be in 2020 or 2021. >> the focus should be on the real economy and let financial markets take care of themselves. >> we are going to be in a slow growth world for a very long time. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york city from our audience worldwide, good morning, good morning. this is "bloomberg surveillance ." we are live on bloomberg tv and radio. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. keene, what a confusing week for u.s.-china relations, ending on a positive note for this equity market. this market is still a glass half-full equity market. tom: i will let you decide if it is glass hat -- if it is glass half-full, half-empty, but it is

decidedly range bound. i guess phase one is back on, but i have zero confidence in that. it is just interesting to see the back and forth, and it is not just the bolton papers. it is the whole back-and-forth between beijing and washington. it is a friday of confusion. jonathan: it is a friday of confusion. a friday of hope over in europe, as well, as leaders discuss stimulus plans. i think the formal negotiations begin right now. they certainly don't in later today. lisa: no they don't, although we might getting some kind as far as who is pushing back and how close they are to agreeing on this 750 million euro fiscal stimulus plan. that is ongoing right now. the other thing i am watching today, i am looking at the baker hughes u.s. rig count at 1 p.m. after will prices have risen 11% so far this week in new york. it will be interesting to see

whether rigs are coming back online. and today we hear from jay powell, eric rosengren, loretta mester, and randy quarles, who is going to be talking stress tests coming out next week, possibly raising questions about whether the fed will push back on some of the dividend payments we have been getting from the big banks. jonathan: haven't we had enough speak? speak -- of fed i think everyone is chair powell 'ed out after this week. tom: one of the most productive dinners i had years ago was with richard bernard at morgan stanley before his treasury public service, and he said to me, don't you just yearn for the days of quiet? [laughter] jonathan: i yearn for the days of wyatt right now -- of quiet right now on the fed front. let's start a conversation with a man who loves the fed speak, darrell cronk, wells fargo

wealth and investment management cio. this market is really impressive given some of the news flow coming from elsewhere. what is your take on that? darrell: it is a great point. good morning, everyone. number one, technicals. you now have the s&p above its 20 day moving average, its 50 day moving average, and it's 200 day moving average. second is liquidity. have by and corporate bonds, getting the main street lending facility going. both of those are pushing ever more liquidity into the market. the third thing is backstopping, just better macro data overall. certainly, a lot of the retail sales numbers, some of the housing data, consumer sentiment has really backstopped, at least prices, andterm,

equities seem to want to go higher. jonathan: expectations go higher , then all, the data can't beat the expectations. are we getting to that point? do you see the inflection points starting to fall? maybeaybe not --darrell: not quite yet, but that is a real risk as we get to q3, q4. right now we are coming off of those week over week, month over month, quarter over quarter lows of the april-may data. i do think in the second half of the year, the likelihood expectations continue to go parabolic lee higher and that i can deliver is a real risk. stabilizes, and it is a tough slog for a while we by no means repaired all of the damage to the labor market and the small business segment of the economy, so equities, there is a

risk equities can get ahead of themselves hear from a price and valuation standpoint. tom: good morning. wonderful to have you on with us. the basic theme for us this week has been strategists walking tout a bridge to 2021, even 2022. what is on that bridge? what is the construction? what are the foundations, the things that allow you or anybody else to ignore 2020 and look out to the future? darrell: it is a great point. we are getting that question a lot. we just launched our midyear outlook. we called it recession recovery and resilience. we think investors have to have resilience into next year. obviously earnings matter, and a lot of people have written off 2020 earnings. we think for the s&p, you will come in somewhere around $115, which is obviously extremely low, 30% contraction from 2019 levels, and probably recover in

$150.o somewhere around still not to the 2019 highs, but that puts you around somewhere of 21 times earnings for next year. multiples are going to be high as you go through this recovery. 2002, go back to 1992, two thousand nine, all of those experienced exceedingly high multiples when you look forward, simply because of where we were coming off the data. lisa: i want to talk a little bit about the rally we saw in u.s. equities after there was some positive develop meants between -- positive developments between the u.s. and china on trade talks. have these been holding back stock settle? all?lding back stocks at darrell: i'm not sure they have been holding them back. china and taking

a tough stance on china is going to be fodder for this election, and fodder for both sides. president trump will continue to push hard on china, and we think vice president biden will attempt to take a tough stance on china because it is politically palatable for both sides right now. so i wouldn't expect a lot of progress. hopefully very few actions, meaning more punitive actions, because certainly the number one and number two economies in the and forthting back have market repercussions. --lisa: this glass half-full market aptly connect the dots of what we are seeing. we see stocks dipped down a

little bit, then recover. what do you attribute to that? is it all the fed and nothing but the fed? darrell: it is a lot of the fed. the fed backstop is powerful. it's not have any illusions about that. i do think there's a little bit more. people are playing that early cycle recovery. people take a stronger stance on risk assets overall. we are catching a bid in a lot of the credit spread markets. commodity prices have continued to be resilient and moved higher, so it is not just equities. asis the whole risk on trade people believe the worst of the economic data in the worst of the troughs may be behind us now. what do you do with the big companies? we have the developer

conference that starts monday. how does wells fargo position with the wonder stocks? darrell: if you were to say overall, what we like is we still like domestic over international, large and mid-cap stocks over small. we still think the fundamentals are not particularly good for small. within large caps, we still think you've got to have a bias towards growth and some cyclical areas. for example, we still think it is infotech, communication services. we still like discretionary and health care.

materials, industrials, those type of names. growth is going to come at a premium, so people will pay up for growth, even if it is only incremental at this point. we think you will get that in the large-cap space and in those sectors i just referenced. jonathan: great to catch up with you, sir. darrell cronk of wells fargo, thank you. tom: domestic over international, pushing back against the grain. so many people starting to think about europe in a more constructive way because they truly believe this time, european leaders will get their act together and do what is needed for the union. that video conference today is the beginning of an intense month-long set of negotiations to finally try and get something therehe line, and still are four big holdout countries. tom: no question about it. , he really mentioned the intransigence of the netherlands. he circled away from the stars of the debate to what will the netherlands do. jonathan: the approval for pushing back -- the frugal four pushing back. pressure oning

these, but not putting pressure on any fiscal policy makers to do more because they are given this bond market wide open. lisa: this has been the struggle, not just in europe. it is also in the u.s. the more the central bank does, the more the pressure is taken off of some of the fiscal policy makers. there's huge question about any reluctance on the part of fiscal policy makers not limiting further plans, how much that is going to hinder a recovery that people are already pricing in. goodhan: that was the old morning to you all. on thenced by 26 points s&p 500. on this program, we ticket to washington, d.c. to catch up with kevin cirilli as we marked juneteenth. that is coming up next from new york. this is bloomberg. ritika:ritika: with the first word news, i'm ritika gupta. china plans to speed up

purchases of u.s. farm products to comply with the phase one trade deal. beijing will buy everything from soybeans to corn and ethanol. purchases fell behind because of the disruption caused by the coronavirus, and the two countries have been sparring over the origins of the disease, human rights, and hong kong. secretary of state mike pompeo is denouncing a formal national security advisor john bolton is a trader who has damaged america. pompeo says he hasn't read bolton's tell-all book that was sharply critical of president trump, but says that from the excerpts he has seen, bolton is spreading lies and half-truths. today, european leaders opening debate on an $840 billion economic recovery program. germany and france want a deal wrapped up by next month. the eu plan would be financed by joint debt issuance, seen as a sick can step toward economic integration -- a significant

step towards economic integration. that is a sticking point. not every country once to be on the hook for spending by other countries. senator amy klobuchar has taken herself out of the race to be joe biden's running mate. she says the democratic nominee should select a woman of color. a tough on record as crime prosecutor in minneapolis has stirred controversy. tesla is zeroing in on austin, texas for the side of its second u.s. a simply plant. it would build pickups and crossovers there. tesla filed an application in the austin area for tax abatement. a site in oklahoma is also in contention. tesla says wherever it is built, the factory will eventually employ 5000 workers. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

americato has failed and has failed the international trading system. i think we have to do things

very differently. i think a number of countries are not treated fairly, but particularly, i think we need fundamental reform. jonathan: robert lighthizer, u.s. trade representative, weighing in earlier this week. what a confusing week for u.s.-china relations. you can throw the bolton papers, as tom keene would call them, into the mix as well. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. getting you in shape for the market action this friday market -- this friday morning. we advanced 25 wings, 0.8% as the team here at bloomberg reports that china is getting ready to step up its u.s. farm, u.s. at purchases once again. phase one is apparently on. the bond market, yields come in, up by a basis point to 0.71%. on the 30 year, up a single basis point 1.49%.

on foreign exchange, the euro unchanged. cable diamond -- cable down by around your .4%. june 19 america, i think we are all happy to see it observed in a much more prominent way across this nation. tom: absolutely. no question about it. so much of us in new york city, the reopening scheduled for monday, but there will be all sorts of events wrapped around her cuomo making juneteenth a state holiday. this all goes back to galveston, 1865, from the events of the american civil war in appomattox to getting the message out across this nation, the final message was for juneteenth, and galveston in june of 1865 area important comment on freeing the slaves. joining us now is our chief

washington correspondent, kevin cirilli. an unfair question, but germane to the moment, are you guessing that june 19 will become a national holiday? kevin: absolutely. there are republicans joining the calls for there to be a national holiday as well. it comes in a week in which had fourelosi portraits removed from one of ,he galleries in the capital former speakers of the house that had ties to the confederacy particulark at this point, yes, it absolutely will be, and within the next couple of years. tom: i must ask one more question of the week, and i know john pop -- i know jon and lisa want to drive forward to this, but your take on the day on the bolton papers and the legal

action. what is your benchmark through this friday to get to a decision book bookease of that -- of that book? kevin: i was struck by secretary pompeo's statement. he referred to bolton as a "traitor." i think the rhetoric from senior administration officials is really ratcheting up. the book is out there. at this point, regardless of whether it is on virtual bookshelves or in brick-and-mortar stores, the book is out there. .e's making his rounds it is in the public domain, regardless of what the judge says. and i would just add, more broadly speaking -- go ahead. aboutwe've been talking how china-u.s. trade tensions are picking up in part because of the bolton papers, because

president trump is trying to show a harder line ahead of the election. it is a game of who can show a harder stance against china. yet, we have a softening of the stance today. which is it? kevin: i think the administration would tell you they have tried to separate the trade talks from the political talks. covid-19, during the height of the frustration of lack of transparency coming from china on covid-19, trade was really a separate issue, so that continues even in the midst of all of this. jonathan: we know what the president loves, and it is a campaign rally. we are 24 hours away from one. what is the focus tomorrow for the president of the united states? kevin: this is the first event of the political season. if you look at the national polls, if you look at swing state polls, has he dug himself

out of political holes before? yes he has, but he is trailing significantly, and this is really day one from the campaign's perspective. it is going to be a massive rally. there are going to be prominent republicans there. thererepublicans will be with the president. it is in many ways a beginning and opening bid to try to get back some momentum. jonathan: get back to normal as well, i imagine. kevin, stay safe. looking forward to reporting over the weekend at the president it's those campaign rallies back together and pushing forward to november. it has been real quiet over the last several months because we have been so preoccupied by this pandemic, but you get the feeling now this weekend is where things start to really ramp up and push forward through the summer and to november. . tom: no question about it, and it begins this afternoon.

it will be amazing to see what the tops can do against man u. i think the defense looks really good. i am so psyched to start the weekend before we look to tulsa. jonathan: can i just translate for everyone who might not be familiar with tom keene and english football that tom keene thanks spurs, tottenham, is called the tots? we can leave that pretty quickly. i thing what is really important at the moment, the market participants increasingly is starting to move up the page. it is in the bottom paragraph now, but slowly starting to come up a little more. the headwinds, the risks around the election, and the composition of congress, people thinking about those tax cuts we had a couple of years ago and what is in store a couple years ahead. lisa: and we aren't talking that much about deglobalization except for bridgewater putting out a report yesterday saying that they expect that to

potentially eliminate corporate profitability over the next decade, and how there seems to be consensus on republican and democratic sides that there needs to be some sort of amplification of the trend we have already seen. that is a big headwind, and i am trying to get my hands around exactly how people are factoring this into their models. jonathan: one element ahead of november. the other that i think we really have to focus on, and this is a pure observation of the fact of the moment, for market participants, it is not just about the white house. it is about the senate. that is the big hedge for market is offense. if the senate stays republican, that will be perceived as market positive. if that is threatened, we have a very different equation to think about come november. tom: you see that right now, and you see that within the analysis. the cook report looking at montana. montana, of all things. montana is out west.

grizzly bears. jonathan: is it? i will have to look at the map. tom: great coffee. jonathan: i'm surprised you are going with a nonalcoholic beverage in one of your favorite states. from new york, this is bloomberg. ♪ bloomberg. ♪

♪ jonathan: from new york city, this is "bloomberg surveillance ." we are live on bloomberg tv and bloomberg radio. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. from the opening bell this morning. equity futures advance, looking to add to the gains. 0.9%.p 500 up 27 points, in the bond market, muted sessions of hartford treasuries. yields up just a couple of basis points on the long end, so just a little bit of mild curve steepening. the 10 year up to 0.70%. equip snapshot at g10 for you. euro-dollar going nowhere. table down 0.4%. that is a weaker pound against the stronger dollar. that is the price action this morning. this market increasingly focused on some of the fragile pandemic

data we are getting in several states across america. want to bring in bloomberg's abigail doolittle for the latest there. abigail: good morning. the global virus numbers continue to stun. it really seems that state-by-state restrictions are ending in mixed results at this point. if we take a look at what is happening around the world, as of yesterday, there were 8.4 million cases globally. exceeddeaths now 454,000. nearly 26,000 new cases in the u.s. yesterday, pretty amazing. california saw a record one-day increase. texas hospitalizations rose for a seventh day. these are big numbers. ,s for more qualitative updates vaccines have started human trials. quarantines order on visitors from florida. new jersey malls can open june

29. american airlines will ban any passenger without a face mask. that is sure to create some headlines in the future. jonathan: abigail doolittle, thank you very much. some real disparity state to state on the process, how we reopen, the rules around how we reopen, and what happens next. we used to be on the same page across america area it last too long. --: no, it really didn't across america. it didn't last too long. tom: no, it really didn't. there's no question that there is a massive disparity out there statistically, and we may have a completely different look, monday. it will be fascinating to see if arizona can put a pause on it, and just as importantly, to the monday opening in new york, if new york can sustain the good news. right now, we have good news, and that is torsten slok of deutsche bank, he and peter

huber have been doing absolutely spectacular work on a global basis, thinking about where we are and thinking about the ramifications of all of these actions by central banks. wordf them is the overused zombie. the idea of a zombie company, a zombie nation, or even a zombie global economy. dr. slok joins us this morning. what is the coach of distinction when you address the word zombie -- the deutsche bank distinction when you address the word zombie? torsten: a zombie company is a company that simply has so much debt, so much leverage, that they do not have enough office to pay for their debt servicing costs. the problem is that since the financial crisis of 2009, interest rates were very low. it incentivized to the corporate sector to go out and borrow. it incentivize to increasing leverage among the financial sector, so debt levels have gone

up over the last 10 years. this was a problem even before the pandemic arrived in march. therefore, what was the answer from the pendant owns the virus came? the answer was -- from the policymakers once the virus came? the answer was substituted my debt,at -- by more across-the-board and board in commercial paper, and therefore we have if i these problems we already had -- we have magnified these problems we already had, even before the virus came along. tom: we've got to clear the markets. are we simply afraid to go bankrupt? is wen: the problem here started looking at this a few years ago, and simply updated what they have done. if you look at a number of companies on exchanges in the u.s., and look at the share of those that have higher debt servicing costs than they have profits before interest payments, that means the

interest coverage ratio for those companies is low -- is below one. so now all of those companies are not able to service their debt, and this is something that becomes more problematic because the bigger share you have of companies that don't have enough revenue, the more it will hold down the potential growth rate of the economy. the more it will weigh on the outlook for the economy over the next few years. jonathan: this is the key question, whether we are sacrificing long-term higher growth, higher productivity for stability now in the near-term. as we repeat that again and again, every time we come across a contraction, a pandemic, a recession, whatever it might be, doesn't make it more difficult to make the opposite decision? torsten: that is exactly right. it is a trade-off between the short run. it did save the financial system. it did save financial markets.

but it has come with a number of side effects, and one side effect is exactly this issue, that the lack of revenue, when they were no dollars coming into the bottom line, companies turned around to borrowing markets, and basically started borrowing in corporate, ig and high-yield and commercial paper markets. that was a problem we already had going into the virus, so this is increasing the share of companies area this is not only u.s. this is also germany, france, u.k., around the world. the fear is that we will look like japan in the 1990's, were you also had high debt in the corporate markets. there is a significant amount of leverage that is now being accelerated upwards because of the response from the federal reserve. lisa: there's an irony baked in here, where the more that prices

-- more that asset prices are kept up in these companies are kept afloat with respect to higher debt loads, the more people can have confidence in investing in these, even though growth is slowing. do you expect that paradigm to continue, for these zombies to be kept alive and not go bankrupt, allowing the asset prices to continue to climb despite the lack of growth? tom: --torsten: you are right, lisa. what has triggered the lift in the companies that are zombies, that was triggered by low interest rates. now not only do we have low interest rates, but we also have actively buying fallen angels. that means they have also incentivized even further more credit extension and more leverage increase in the corporate sector. corporate financials in particular have therefore added on more debt. somewhat ironically, we have

exactly, as jon just said, maybe some trade-offs in the short run, but we still have this very important problem that we need to look at the fundament of structure of the corporate, and the comparisons before was all about inflation. that is still a debate. but now there are more parallels with japan that are coming into the radar screen. that becomes very important when you are thinking about if this is all in the s&p, or are there very important sector differences in terms of this leverage increase we have seen in some sectors and not another's. -- and not in others. jonathan: this is not capitalism. what is this? torsten: it might sound very academic, but i would say this is interfering with the process of creative destruction. creative destruction is that some companies go under, some companies open up. every day on a normal day, there's about 1600 companies in the u.s. that go out of business .

artificially ig spreads have been narrowed and credit spreads has been narrowed and the cost of capital has been lowered, which makes sense from the fiscal perspective, that begins to open a lot of questions. what does that mean for the process of companies going under and companies starting, and what it means for how dynamic the economy is? it is normally the most dynamic economy in the world. how is thatlem now, process looking going forward if you have a share, and a rising share, of the corporate sector that is not able to do those significant advances in innovation and productivity that we have seen for all of these years? jonathan: fascinating conversation, and one that we will have to continue for a long time to come. torsten slok of deutsche bank. just a remarkable conversation. these are the kinds of things you need to see happen.

the issue with this is that this was a pandemic. i think the way the federal reserve has approached it is the belief that no one deserved to go under because no one could have seen this coming. not my personal view whether that is the wrong or right approach come about that seemingly is the approach from policymakers worldwide. tom: that a claimed deutsche bank chart that everybody put out, i know zero edge featured it a few days ago, of the zombification of this economy, is extraordinary. all this comes down to is a new kind of capitalism. i love your short question there. what is this? we don't know yet what this modern form of capitalism is. jonathan: i am not even sure whether we can call this modern capitalism. i have no idea what we should be calling this for the years to come. lisa: my question is, honestly, we have a situation where people who own assets are seeing price gains. people who work at these companies being i with more debt are keeping their jobs.

who is going to push back? long-term, it is theoretical that it creates the type of long-term destruction that creates dynamism in society, but in the here and now, it doesn't seem up there is any political will to push back against the ongoing zumba fixation -- ongoing zombification. jonathan: you sacrifice longer growth for short-term stability. you have to be willing to except a vicious contraction, a vicious amount of bankruptcies. for me, that is a really difficult decision. in more you put that off and an economy heavily financial iced like this 1 -- heavily financialized like this one, i don't think you could ever make that decision unless the decision is made for you. tom: to me, it is what bob prints talked about -- what bob about, and ray dalio.

it is this massive idea of a lost decade, and the optimists pushback. they say, says who? jonathan: coming up next on this program, we will talk about the reopening of this economy in new york city. looking forward to our weekly catch up with the new york lieutenant governor kathy hochul. that is coming up next. this is bloomberg. ritika: with the first word news, i'm ritika gupta. looks like the trade deal between the u.s. and china is back on track. bloomberg has learned china plans to speed up purchases of u.s. farm goods under phase one of the agreement. the shopping list includes everything from soybeans to corn and ethanol. china's purchases fell behind due to disruptions caused by the coronavirus outbreak. more states are seeing a growing number of coronavirus infections. florida, texas, arizona, and california reported one-day records. meanwhile, californians will be required to wear masks in most situations outside the home.

that is from guidelines issued by governor gavin newsom. orange county rescinded its mass quarter after its top health official received death threats. the trump administration goes to court today to try to stop the publication of former national security advisor john bolton's tell-all book. it is a last-ditch effort. the book is set to be released next week, and excerpts have already appeared in newspapers. the justice department argues that the book contains classified information. bolton says the government is trying to stifle free speech. in australia, prime minister scott morrison's warning of a cyberattack. various industries have been targeted. he did not reveal the source, but blames them on what he called state-based actors. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪

when he 19 --back

back to where we were in 2019. we will have made it up by the first quarter of 2021. jonathan: larry kudlow, the chief optimist in washington, d.c., who we catch up with off and on this program and across this network. from new york city, good morning to you all. the most optimistic i have seen has got to come from morgan stanley, who things we can recoup a lot of these losses by the end of 2021. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. your price action shaping up as follows. futures up around 30 points, 0.9%. a lift going into the opening bell this friday morning. tom: there's no question. as theely framed that economics and may be the financial discussion of a morgan stanley or other optimists out there. but then there is the reality of opening up, and no one wants to open up with the agony that we

have seen down south of large gatherings, which may be lead to potential infection. the lieutenant governor of the empire state has provided leadership on this with governor cuomo to open up in a response of way. lieutenant governor kathy hochul joins us as morning -- joins us this morning. i want you to give us one anecdote of what it is like to open up state that people in the bigger cities can understand. what is one of those tension points that has been instructed for you? -- that has been instructive for you? lt. gov. hochul: thank you for having me on the show again. i have been all over upstate. i will tell you what i see. i have seen business owners who understand the gravity of the situation. they have been shut down. they have lost their income for three and a half. in order for them to survive, they know they need to create an environment that is safe, that you walk in the door and that you're six feet apart from other

customers, that everybody wears a mask or you don't walk in the door, and there is disinfectant on the counter. i have seen this everywhere. we are all aligned in our interests. governments, those of us who have been leading this charge. governor cuomo wants to make sure we are getting this right. does this owners want to be sure we are getting this right -- business owners want to be sure we are getting this right. they do not want to be in the news as being a hotspot or be seen as violators. so the interests are all aligned to get it right. i saw countless examples walking down these streets, business is proud to put up there open for business signs, welcoming people back, and they are being smart about it. that is all it takes. this is not a complicated concept keep doing what we've been doing, a slow, well-thought-out, methodical opening, and it works here. jonathan: we hope it continues to work, but we all know the hard work of the state can be

undone by failures elsewhere. what are you doing to protect new york from the out week -- from the outbreaks we are seeing in other states across the country? lt. gov. hochul: the irony of this is incredible, to consider that we were the epicenter of this pandemic, and other states were telling their residence not to come to new york, or if you were a new yorker driving to florida for your vacation, you were told you had to quarantine for 14 days. it is extraordinary come of the turnaround, the fact that we now have the lowest rate of infection. so yes, we are concerned. the governor addressed this yesterday. we have a new york state a lot of new york residents that go down to florida, the become snowbirds, but they come back to their summer homes in the city, the long island area, or upstate. unfortunately, we are starting to see cases where they are bringing the virus now to us.

so the governor is weighing all of his options. he is speaking to experts about what rights we have to protect us because we have suffered too long, and we have come back on a long, slow road to get it right, and we will not take any steps backward because of what is going on elsewhere if we can help it. new yorkers cannot go through this twice. we are continuing to ask people to follow social distancing, wear the mask, and we will not end up like other states. that is psychologically devastating and horrible for the economy. lisa: how close are we to having to actually cut services as a result of the budget deficits in new york state? lt. gov. hochul: it is almost inevitable. the only lifeline we are waiting for is to have congress and the president understand that you cannot have a full economic recovery in this nation without helping out states like new york. we were the hardest hit. we have to get some fuel back

into us. when we get that money and we get that assistance, which we believe should happen -- and don't be playing politics. this is not the time to be talking about red states and blue states. we are an important part of the comeback for the nation. so there would be cut ask, -- there would be cutbacks if we don't get that support from the federal government, but the governor has had conversations with the president, we are speaking with congress, and we hope they get it. we all want this economy to come back. you were talking about the 10 year decline, and it is going to take a long time. we can come back much quicker, and the federal government spending with revenues from europe, but we just need a little help during this time, and we expect to get it. tom: very quickly, i have the clearest memory of the riots of 1964 in rochester, new york. it has been a path with the courage of know can raw -- of

nelson rockefeller and others to provide african-americans in this nation and in this state. are you going to see a national holiday off of what we saw from your governor a few days ago on juneteenth, 2020? lt. gov. hochul: i can only speak to what we are doing in the state of new york, but i tell you many times, when new york leads tomatoes follow. whether it is -- leads, others follow. rights,it is lgbt women's rights, those started in new york, and we are finally getting the recognition that the african-americans deserve to have as an important part of their history, which was the emancipation proclamation only --ng enacted and proclamation finally being enacted in texas. i am so delighted to see more people understanding this history and understanding that the root of racism goes back

centuries, and it is a time to right that wrong and have any knowledge meant of that dark part of our history, but realize that we can come into a brighter era if we become cognizant of that history and why the the remnants of that are still affecting society today, and why systemic racism goes back to that time. jonathan: i think we all hope we can make more progress. fantastic to catch up with you, as always. lieutenant governor of new york, kathy eight, under -- kathy hochul, on the reopening. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. this is "bloomberg surveillance ," live on bloomberg tv and bloomberg radio. as we round down the trading week, equity futures up 30 points on the s&p 500, up around 1%. at the top of the hour, this is a glass half-full market at the moment. just taking the good news and running with it, and shaking off the bad news time and time again.

up next on this program, becoming a little more optimistic. michele of jp morgan next on "bloomberg surveillance." ♪

>> know when at this point, analysts -- no one at this point, analysts, companies, have a great sense of what conditions will be in 20202021. >> let financial markets take care of themselves. >> we are going to be in a slow growth world for a very long time. >> "bloomberg surveillance "bloomberg surveillance this is -- this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. it is a friday in june. for many in this nation, it is juneteenth, as we look to