reports a record number of new coronavirus cases. florida, california, and texas see pronounced spikes. lone star state pauses its reopening as hospitalizations soar. the federal reserve told the biggest u.s. banks they can increase dividends or resume buybacks for the third quarter after a separate review of coronavirus uncovered a potential risk for lenders. and the u.k.'s chief brexit negotiator rejects a new proposal to avoid a no-deal. we speak exclusively with the chancellor of the u.k., rishi sunak, on how he plans to ensure the nation's economic recovery from the pandemic. well, good morning, everyone. welcome to "bloomberg surveillance." i'm francine lacqua, here in london. tom keene is in new york. the marketing europe are focusing more on the reopening of the economy on some of the bailouts or the help that governments extended to some companies rather than the number of infections rising in the u.s. tom: it is a lot of different stories on this friday. it is a very odd week, and of

course in america we go into the jobs report next thursday because of independence day, a week from today. is viruserica, it front and center. i would agree with you, europe is a different tapestry this morning. francine: it certainly is. watch out for germany because it seems the overall number of infections rose, but there are pockets where it is researching. let's get to first word news in new york city with ritika gupta. ritika: good morning. the u.s. has not seen a day like this since the coronavirus pandemic hit. the country registered its biggest ever jump in cases, and that is leading some governors to reopen their states. -- to pause reopening their states. texas has suspended elective surgeries in big cities. businesses that are already open and operate. there are reduced occupancy limits. the administration has asked -- filed a brief

with the court last night that urges the entire affordable care act must fall, including its protections for people with pre-existing conditions. the supreme court is set to hear the case from around the time of the november election. the federal reserve is playing it cautious when it comes to the biggest bank in the u.s. they have told the bank cannot increase dividend buybacks through at least the fourth quarter. a separate review of the effects of the coronavirus pandemic uncovered potential risks. germany is preparing to strike back against possible u.s. sanctions if president trump follows through on his threat to kill off the nord stream 2 gas pipeline with additional penalties. the pipeline allows russian gas to be pumped directly to germany. global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in i'm than 120 countries,

ritika gupta. this is bloomberg. francine? tom? tom: equities, bonds, currencies, commodities. i will keep this short. we are in a range bound market. what i am looking at, indicators the range oft of the two year yield. it is stock at .18, plus or minus. right now futures a little light. francine? francine: tom, i'm looking at some of the markets here. netherlands,pe -- support for airlines. we will be speaking with a chief executive on that shortly. german infections rates declined, and in all there seems to be more optimism that policymakers will not have to reverse plans to reopen after lockdown, after new cases rise. inre is a bit of optimism

europe this morning. tom: very good. it is a joy to begin this friday for me with a gentleman who flagships the great romance, klm of the netherlands. anis an airline, it has agreement of 14% here, 14% there with air france. but klm is the romance of intercontinental travel of the past. it is not batavia of the 1920's, not even the transatlantic flights i remember as a kid. what it is is klm fighting for its life. there chief executive officer joins us now. peter, thank you so much for joining "bloomberg surveillance ." what do you need to do on this friday and through the weekend, and into july, to right the ship before the airline industry implodes?

facing aviation history and in the last 100 years, the largest crisis we are facing. with that, we are taking every measure to sail the ship through the storm. interesting isd the politics of ownership by the nation of france and by the nation of then evelyn's fine. -- of the netherlands fine. are the governments with you? today theh, i think state announced their support of klm by means of a direct loan and a credit facility, totaling 3.4 billion euros. that is following statements by the french government in supporting air france. it is important for us at klm that we have that loan to start

to have necessary restructuring and ensuring that we will drive through and be able to recover our network and start rebuilding after this covid crisis. francine: do you worry that there is a level of mistrust between the countries? the way it is working, as far as i understand it, is that both countries basically give aid separately and that there is a state agent that is checking whether there is dutch government money that flows to klm and not air france. peter: the situation of course, consolidation, which is very different than the consolidation in the u.s., by definition means that the countries are supporting within the framework of the european commission, are supporting their carriers with loans. since countries have to defend to the public, if you wish, the good spending of taxpayer's money in terms of providing a

loan, it is natural that they want to ensure that this loan is directly into the airline they want to support and that the conditions are attached to that. so we have conditions from the dutch government and air france and conditions from the french government. francine: i understand that, but does it create a level of unrest in the franco dutch company? do you worry that there is a element of distrust about what air france will do with the money? peter: i would say on the contrary, i think it is important for us and we have demonstrated over the last decade that the strength of the air france klm group is in the combination of the two brands, air france and klm, that we run a successful strategy, that also across the atlantic that we have a wonderful and strong cooperation with our friends from delta. today going through this crisis, the fact that both airlines are supported by their governments, i would say is strengthening, rather than increasing the level

of distress. i would say it is a positive step. elbers, as you look at the airline business running up against the virus, fromou fly with confidence klm flight 662, from george bush up a flight to houston, from george bush's flight to houston, jam sedan? peter: we are taking every measure we can to make flying as safe as possible. a combination of having the masks on board as mandatory, having reduced services in order to minimize the interference crews and passengers, and to have assistance on board the aircraft to make sure that the ventilation is being

filtered, and with that we have taken every possible measure to make it as safe as possible in terms of flying. fromine: we keep hearing -- he is pretty mad about some of the bailout deals, and he is saying it is a poor deal for a trading nation and it is really bad for competition. how do you respond to that? peter: understand that he says that, but that is precisely why the european commission has established a framework, a clear framework, to ensure there is a level playing field, and we are paying interest on these loans, and these interests are to be endorsed by the european commission. in order to ensure that this does not disturb the level playing field. conditions in are the field of sustainability and labor conditions and other things like that. byit is both the conditions the european commission as well

as the commission supply, but the national government. so it is not a free write. i understand it may serve his words to portray it as a free write, but it is not. francine: thank you so much for joining us today. he is peter elbers, klm chief executive officer. coming up, we speak with rishi sunak, the chancellor of the exchequer. that interview coming up in 20 or 30 minutes, 5:30 am in new york, 10:30 in london, and this is bloomberg. ♪

francine: this is "bloomberg

surveillance. we are delighted to be joined by geraldine sundstrom. thank you so much for joining us today. we saw a number of countries in europe -- i think australia yesterday, selling this 100 euro bonds and aunt went out with little success. how much more will we see these type of insurances that influence come to fruition. how much will it mean to yield? geraldine: in terms of issuance, we would like to see a lot of it because the governments are busy , helping the world in this crisis. yields arese the very low and people are desperate for anything with positive yield. so i suspect that you have to go higher, longer, out on the curve to find those yields. however, there should be some caution around this. the amount of supply is relatively big, and uncertainty remains high.

be in curves,d to where we still get a positive yield without going so far out in the curve, like 100 years, and staying to the tenure part, and that means going to the united states over -- or australia to find relatively attractive yields. francine: i was looking at some by number, analyzed and it is pretty incredible. do you see any value? i know you mentioned treasuries, but do you see value in some of the european bonds? europe, i suppose if you look at, at least from my , you want diversifier something that will give you a relatively substantial capital gains if there were to be negative surprises ahead. and the european duration given

the absolute level of yield, and because negative rates are limited in scope, we prefer to be more neutral, and maybe for those who can take a little risk, thanks to the support of the ecb may be having a little referral bond rather than changing such a long bond with low yield. maybe what we -- sorry, tom. tom: no, please, continue. geraldine: the other question, and one would two given the amount of fiscal stimulus and monetary stimulus out there, not in the short-term but in the medium term, inflation might come back. so going with such long-duration is fraught with risk. if you really wanted to go so far out and so long, it would be

safer to do it with inflation protected securities. optimist, an geraldine, and based off the advice of pimco, i went out and bought the 97-year austrian piece three years ago, and i have seen the year -- the yields come in as all yields have come in, and the price of that long-duration bond has gone from 100 to 190 seven. i feel pretty good about that. but that underscores, if we get even a whisper of inflation, the price erosion that we will see in the bond market -- is the bond market ready for that? and listenerss ready for the bond price erosion we are going to see with any kind of reversal in yields? geraldine: for now we don't think inflation is going to run away. the crisis and the recession, of course keeping inflation low,

and at least for the foreseeable future, central banks are going to make all the effort they can to control the yield curve. the question is up to which tenor, and there are areas of the curve that are more secure than others. it is relatively well priced i the market, and therefore you have to sort of balance -- priced by the market, and therefore you have to sort of balance the issuance with, for now, the lack of inflation and support from central banks. compromise more around the 10 year rather than it going out to 100 because at this level of yield, uncertain horizon, probably take a lot of risk. those horizons are interesting on this friday in the gym. geraldine sundstrom with us from pimco. she will continue with us, and that is a good thing. come up later on a friday,

resetting into the second half of 2020. ferro,, delthan -- mohamed el-erian. ♪

tom: good morning, everyone. frommberg surveillance" london, from new york. on a friday.

real heat here in new york, and headlines that the beaches of the united kingdom, even making a splash here in america. geraldine sundstrom with this right now, making a splash in fixed income with pimco. we are thrilled that she can give us perspective on yield dynamics, and also moving over into the other asset classes as well. geraldine, if interest rates don't work in a vacuum, they buttress off equities to an extent. but i would suggest far more flows of capital, and in the foreign exchange market as well. tell me how you perceive a resilient u.s. dollar from the purview of fixed income. verydine: so that is a good question. even the low level of yield, we need to find other ways to diversify portfolio and protect would to the downside. so there are ways to do it. you can look at gold or you can look at foreign-exchange.

certainly this is an environment gold, you know, we like and the dollar, you know, at least versus certain currencies, is likely to remain supported because of its reserve nature and safe haven nature. thes true now that with pandemic being better in europe versus the u.s., we might see a thele bit more trends on european part. but ultimately what it is -- what is going to dictate the currency that will be more resilient in the medium-term is where the recovery is the most resilient, and that is a live bit early to tell. francine: what do you do with inflationary pressures, geraldine, longer term? i don't know whether they are twelve-month away and whether we will even see inflationary pressures. but do you need to take stock of it now? geraldine: at least gradually,

for sure. we don't think it is coming in the short-term, and that is something for the medium-term. so that is something we have gold.o start looking at of course, equities, the ones that are in the right part of the cyclicality, there is going to be a recovery. what day is hard to tell, but certainly what we have seen with our government, with a very large physical package, that are areas --ted toward two digital and green. and these are the areas that are likely to be supported, and where you want to have equity risk and equity location there. i think it is about yielding a portfolio, a balanced act between caution but also conviction. i would say those areas of conviction is what i call cyclicality 2.0, which is more toward digitalization, clean energy, and automation.

this is what we like to bring up in portfolios. youcine: geraldine, how do look by region? is europe less attractive than asia right now, or than the u.s.? geraldine: when you look at the sectors that i just mentioned, then we take an approach that ,oesn't have the regional bias with companies that have resilient balance sheets are exposed to the right sectors, the right cyclicality to point out. what we have -- the right cyclicality 2.0. what we have found with those companies in the united states, in asia, and japan, in taiwan. there are a few in europe but they are more difficult to find. usually the situation in europe, there is little tech exposure, but there are other things in automation. but if you handicap for the quality of balance sheets, we find it more difficult to find the appropriate candidate in

europe. so defective in our portfolio, europe is carrying much more weight than japan or the united states. tom: geraldine, thank you so much. geraldine sundstrom from pimco, with a friday brief for you. we have much more coming up. mohamed el-erian will join jonathan ferro at 9:00 in the united states. will be joining us from johns hopkins university. and the virus across the sun belt of america. stay with us. this is bloomberg. ♪

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get a $50 prepaid card when you switch. it's the most reliable wireless network. and it could save you hundreds. xfinity mobile. tom: welcome to "bloomberg surveillance." coming up, a conversation of francine lacqua

with the chancellor of the exchequer it is an exceptionally timely interview, not only on the virus, the internal -- the internal policy of the united kingdom, but also -- the internal politics of the united kingdom, but also brexit. the chancellor of the exchequer coming up in moments. right now, the chancellor of medicine for bloomberg news, and that is only one person, john lower men joins us. he is truly our best and brightest at the brightest. is only one question in america underscored by dr. redfield yesterday of the cdc. what is the linkage of expanding cases to deaths three or four weeks down the road, whether it is deli in india, whether it is portugal, or whether it is houston, texas? >> good morning, tom. i think you have to assume that in these cases it is a case of

rain follows the plow, right? if people are getting sick, if we are seeing more cases, these cases tend to take about two or three weeks to play out. obviously not everybody dies, but if you look at the percentage -- if you look at the numbers of cases as they rise, you know, two to three weeks down the road, you do tend to deaths risesr of as well. cases rises asf well. learnedcdotally, i yesterday of a family where the father got the virus, the mother got the virus, and the sun got the virus. the father lived, the mother died, and the 31-year-old son died as well. , doin all of your research we grossly misjudged the effect

of the virus on those under 60 years old? cdc has actually revised a little bit there leastce on this, or at the estimations in this area. they had been saying that people over 65 are at increased risk. now they say that as you get older, the risk increases. i think it is still -- the jury is still out. that is some evidence younger people are protected. there is no question that as you get older, as you get into the 60, 65-year-old range, you are at higher risk. part of that has to be because people at older ages have more underlying conditions. higher rates of obesity, higher disease background lung that is going to make you more vulnerable to these

complications. but there is no denying that there is a risk to people in their 30's, in their 40's, and i think any people misjudge that. francine: good morning from london. we talk about this initially being a respiratory disease, but now every day we hear about other factors associated with it. it is blood clots, it is early heart attacks, things like that. how much do we actually understand what the disease is and how it is morphing? well, we talked not too -- itgo about the effects is a hugely important finding because it underscored the disruption that the virus brings to the body's immune system. that the immune system is flailing around trying to fight this virus, doing everything within its power to kill the virus, and a lot of these

weapons of the immune system get misplaced, and that is why you end up with clotting, you end up with some organ damage in some patients. actually, overnight we had a story that delineated some of the effects on the brain. it is not just strokes, which would result from clotting, but there are also people who incur the behavioral disorders, some altered mental states, confusion, depression, various psychiatric disorders. body is reacting so strongly to this virus that it has never seen before -- i mean, if you get an infection, if you get enough of the virus to get severely ill -- the entire body really rebels. that is why the dexamethasone finding is so important.

there are other drugs coming down the pike that may help us deal with these inflammatory reactions, maybe even better than dexamethasone. because dexamethasone as we know, and the other drugs that are being used to fight the none of these are a cure. anyone who thinks there is a cure out there, there is not one. francine: given what you just explained, we started this in europe with a lot of politicians -- talkingut hred immunity. what percentage of the population could have it in immunity?ave herd is that something we should consider, or should we forget that? john: it has got to -- you cannot just forget about it. herd immunity is something that

comes about as a result of the vaccine. that is why we have herd likeity against diseases smallpox right now because we have vaccines against them. it is not out of the picture entirely. the question is, are we going to actually just get enough people infected? , i thinkomething that there was a hope that perhaps enough people might actually get infected and get antibodies. first of all, i think it is not clear whether we can tell from antibody tests whether people are actually immune. thereer of us are still about herd immunity. francine: john -- tom: john lauerman, thank you so much. right now without first word

news in new york city is ritika gupta. ritika: the race to reopen in the u.s. has now been put in reverse. there has been the biggest ever jump and coronavirus cases, leading governors to put hold -- to put on hold plans to get their economies going again. california, arizona, and texas. the white house will hold its first task force briefing on coronavirus in almost two months. that is an expectation there will be a positive stalemate on policing rules. democrats and republicans are far apart on reliability shielding. several european countries are offering to compromise with the u.s. on a proposed digital -- france, italy, and spain said they could only initially taxed automated digital services. the u.s. has threatened to put tariffs on those countries if

they do so. and a weekly decline in oil, the first since april. heralding the outlook for demand. russia is determined to curb oil output. global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in i'm than 120 countries, her. this is bloomberg. tom? francine: thank you so much. i would pick it up because coming up shortly, we will focus on the u.k. we look at what more can be done to safeguard this economy. we will talk about bailouts, we will talk about furloughs, all of that in an exclusive conversation with rishi sunak, chancellor of the exchequer. that is coming up shortly, and this is bloomberg. ♪

tom: good morning, everyone. "bloomberg surveillance." coming up in moments, francine, after our data checks, a conversation with the chancellor of the exchequer. right now the conversation this simple -- range bound, doldrums, boring. gold right up near 1800. the pulling back nicely at 1770 level. i want to make note that the number one thing i am watching is the u.s. two-year yield ultimate has just breached 0.18%. francine: stocks are edging higher. the netherlands announced new support for airlines, and the german infection rate inclined.

if you look at the dollar, it is put in much steady. i'm also looking at treasuries rising with the yen. coming up, we will also look at guilds, talk about debt, and we will speak with rishi sunak, the chancellor of the exchequer. he is coming up shortly, and this is bloomberg. ♪

ritika: this is "bloomberg surveillance." betsf the single biggest on the aviation industry since it was shuttered by the pandemic, desk capital has agreed to buy collapsed virgin australia. has agreed tol buy collapsed virgin australia. tozon reportedly has agreed by the so -- to buy the self-driving car company zoot. that gives the company control designedartup that has a driverless vehicle to be used in urban areas. shares of nike are falling today.

they have disappointing sales in its fourth-quarter -- first quarter, declining 38%. shuttered stores around the world took a bigger toll than expected. why can't -- why cut is accused of fraud. -- wirecard is accused of fraud. over to be in dollars missing. that is the bloomberg business flash. tom? francine? tom: thank you so much. one of the things that we know for certain is that business continues to be done, even though midtown here in new york is shut down, and of course wall street very much shut down as well. life goes on. for the venerable new york stock lesko, ipot is maybe

ipo's. >> while they are in for an everybody, we are hearing from investors that they are looking for more choices, so we have been working with the sec productively on refining the operating of the direct listing. we have had two companies to dates, so barry mccarthy came up with the idea, we rolled out the first one, and that was the second company to choose that company for their public listing just over a year ago, and where we have been building on that model is to allow for capital raising. with a dirt -- what the direct listing does is it separates the timing, so you can choose to go public but not necessarily raise money at the same time. so the two to date have taken that path. now what we are working on is, what if you want to raise money at the same time but you would like the exchange of the process of opening to determine how that

offering gets price? that is the phase we are working on with the sec now. we filed the first iteration in december and we worked addictively with them on questions that they have. so this most recent filing which we submitted on monday answers mechanical questions around how that offering will actually be priced in the morning, how does it get entered into the market as an order, and what measures need to happen that morning to get that life and public? we have been advancing that ball so that we continue to work with issuers and investors on having another alternative. in the middlewere of this regulatory process and you do not know how it will come out. but is it really a mechanical issue? that sounds like we have to work it through and it may take some time, but it is not a substantive issue that you will get there sooner or later. stacey: i thing that's right. that is how it worked with spotify i'm a working a year and a half with the sec, the corporate division of finance,

very constructive dialogue. their goal is to protect investors, so they want to make sure that they are working with us to develop a process and achieve that goal. it took about a year and a half to get that done. we are working on this iteration. they are more about how does this come to market, how does it get priced, how do investors morning,to react that how do we know that that interest get satisfied? they are more mechanical issues that we have been working on. i think we will see a direct listing to have the ability to raise capital at the same time they are listing in the not too distant future. some companies have been asking about it because they are interested in pursuing that path. that was stacey cunningham, the president of the new york stock exchange. let's go straight to the u.k.. almost claims doubled to 3 million. as the country marks major

easing of restrictions next week with the reopening of restaurants, the government is still paying the wages of more than 8 million people. now with the national debt jumping to 100% of economic output for the first time since the 1960's, how should the government boost growth as we come out of the current crisis? i am delighted today to be joined for an exclusive .onversation by rishi sunak thank you for giving us a little bit of your busy day. it has been a baptism of fire for you. you have been forced to turn on -- have you gone as far as you can to bail out the economy? good morning, francine. thank you for the introduction. i think you are actually right. we have done an extra ordinary amount. i firmly believe that was and is the right thing to do. i am glad that independent institutions, the bank of england, and the imf all have said that the situation would be

far worse if we had not acted in the way that we had to provide businesses and individuals, and protect jobs through this crisis. but looking forward, there was to port thing we can do right now is safely reopen our economy -- the most important thing we can do right now is safely reopen our economy. that we should carry on with delivering that plan. francine: chancellor, what more can you do if the economy needs more support? i think the most important thing for the economy theis to reopen and have confidence to return. millions of people work in sectors that have been shut down in retail. the most important is for them to reopen in a safe and measured way, which is what we are doing, and then for confidence to return back into the economy. also balance sheets, consumer credit come all the numbers we have on that are relatively strong and healthy.

what we don't know yet is whether people will have the confidence to get back to doing all those things. i think that is the critical thing we need to make sure is there to help drive the recovery. the government can do things to help with the recovery, and the prime minister would make a speech later as well come outlining further things in the coming weeks. we remain very committed to some of the things we talked about in march, investing in infrastructure. those are all things that we can help and we are committed to those ambitions. francine: what is your priority in the next phase? said, my next phase, as i is to safely reopen those parts of the economy that will drive the economy and help protect those jobs. we already know that there is enormous dislocation in the labor market. i have always been clear that i cannot protect every job and every business, despite the

unprecedented action we have taken. but my priority is absolutely to try to protect and preserve as many of those jobs as possible, help those families return to those jobs and make sure they have the security that they need. and for those who lose their jobs, unfortunately, with what is happening, is to support them in finding new jobs, better jobs come as quickly as possible. francine: chancellor, france is preparing to extend its furlough program by another two years. are there circumstances in the u.k. by which you would look at extending the program here? think our scheme that thestablished was one of most generous and comprehensive in who it covers, and the generosity of how it worked anywhere in the world. from start to finish, it will last for eight months, which i think is a comparative time well into the end of the autumn, and we have also provided direct fiscal support with those

industries most impacted by what is happening. we have cut their business rates, for this entire year, which is a significant part of the cost structure. we have also provided them with direct cash grants for small businesses, which many in this industry are 10,000 or 25,000 pounds, and provided them with extra ordinary discounted loans. over one million businesses have had government-backed guaranteed loans. that represented a considerable amount of support, particularly for those sectors most acutely affected. francine: does that mean your ruling out any kind of program extension? ouri: as i said, we set out plan, and our plan is to run the scheme through the end of autumn. i think there is general agreement actually, it is not sustainable at that scale to be sustained indefinitely. there are other ways we can support the labor market, which is what we will always do.

we have provided direct fiscal support to those particular industries most affected. those are our priorities at the moment, as well as, we set out an ambitious agenda in march to provide government investment and infrastructure, which will generate jobs. our priority is to double down on that commitment to see where we can speed up delivery of those commitments as well to help drive recovery as we come out of this. francine: you talked about other ways to support the economy. what are, concretely, those other ways? cannotwell, as i said, i write future budgets now, but i pass phaseve got to one of this crisis, providing support for businesses and incomes, projecting jobs through the crisis, making sure we maintain as much productive capacity in our economy as possible, and i think we have done a decent job of that through the loans, tax deferrals, the tax cuts, the cash grants, the furloughing

schemes. we are now in phase 2. best thing we can do is to reopen the economy. millions of people work in these sectors and they are particularly lower paid and younger. it is imperative to try to protect as many of these jobs as possible. it requires businesses to reopen safely with guidance that we have prepared and work with them to develop, with these people having the confidence to go back to all of these things, and i think we need to make sure that we are collectively able to support that confidence. and then we will get to phase three as well as some point -- as well at some point. we have to do a spending review or we have to put out spending for the remainder of parliament. that is when we will look down to double down on the commitments. that is about spurring opportunity across the country. you hear us talking about leveling off in government. we believe whether you grow up in the rural southwest or a town in the northeast, you should have the same opportunities as everybody else.

that means investing in innovation and infrastructure around you that allows you to fulfill your potential. those are all the kinds of things that we will look to deliver. two former chancellors tve urged you to bring in a cut. are those things that work in practice? advice, always get particularly on tax cuts, from all sorts of people, so it is hard for me to comment on them specifically. typical economic crisis where incomes are hugely impaired. because of the furlough scheme, protecting incomes, and because we have essentially stopped people from going out, and we have shut down elements of discretionary spend, where we contract the consumer balance sheets and deposits, it is very

strong. deposits increased three times their normal range in april, very significant increase, and when we look at consumer credit, we have seen essentially the largest repayment rather than credit going since the early 1990's. you put that together with other data and you look at what is happening in the u.s. with savings ratios, you can paint a picture of balance sheet's being reasonably in robust shape. it is slightly different, as i have said, the policy response might be different, but the number one thing to focus on his confidence. having people have the confidence of returning to do the things that they were doing a few months ago. this is a very consumption-driven economy come as you know. it is almost 65% of our gdp. that incomely less is the issue and psychology that is more of the challenge. francine: you keep talking about boosting confidence. how do you concretely boost confidence, from where you are sitting? it is actually

people just feeling things that we have not done for three months that we can do again. whether it is taking the cue from the prime minister going out and about, doing things whether it is in their local community, being out. those are all things that we have got to tell people that we have moved to a new phase. people should also have confidence that it is a new normal, it is not the same. they will shop very different than how they did in february and early march. there will be screens, one-way systems, and sanitizers. those are all measures that restaurants and retailers are doing. creating safe environment for us to go out and about again. as people start to see that and recognize that, they will have confidence in the system. they will also have confidence in our ability to manage the virus overall with our new track

and trace operation, our ability to be more nuanced and targeted without response. all of those things collectively hopefully will give people confidence. but it is not going to happen overnight, of course not. francine: a lot of big-name companies are struggling and want some kind of government bailout. what kind of response should they expect on that question? sense, government has always been a lender of last resort. the bar is exceptionally high. it is the taxpayers' money. i should not be sitting here trying to pick winners. it is not something that is an attractive long-term feature for the economy, and if we are in a situation like that, than one would obviously expect financial investors and creditors to significantly share in the burden of