uncertainty. binary risks are impossible to hedge. i think buying some treasuries for safe havens makes sense. >> i think we are going to level off in terms of the recovery. >> i would say we are six months into this, another year and a half, i think we will really start to pull ourselves out of it. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: for our audience worldwide, good morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. tom keene, negotiations begin in washington, d.c. tom: there we are last night. we will let much more today. i love one of the coming, i believe from the senator from could. he called -- from kentucky. the legislation from

the democrats "a multitrillion dollar socialist manifesto." jonathan: it is going to be a mess. republicans negotiating with themselves, simultaneously negotiating with democrats. tom: it's got to get to the end of july here. kevin cirilli, we will talk to him through the morning, but the calendar urgency here is extraordinary. jonathan: as this week grows older, this week it's a whole lot busier. lisa: we are heading into the fed meeting today. at 10:00 a.m., we get consumer confidence data for july. very interested to see how much this has been affected by the end in pandemic cases across the country. starbuckst, visa and reporting earnings. 10% of s&p stocks report results today for the second quarter, another eight percent tomorrow, 12% on thursday, so a big earnings week. , hashing out the

stimulus. i am really interested in the mechanics of it. shifting to the house, demanded to take that $200 of additional stimulus the republicans are proposing and adding on the prorated aspect they are going to calculate, given the antiquated systems that was brooke the last time, how is this going -- that almost broke the last time, how is this going to work? jonathan: the s&p 500 down five points, 0.15%. look at the board. we've had this explosive moving gold. we settle at $1928. the calm in the face of a total mess down in washington is pretty impressive. tom: i think you nailed it. that is what i saw yesterday on the tape. there are some flareup points right now. one in turkey, where there is a decidedly weaker turkish lira.

that has euro turkey to record weakness. moments ago, mcdonald's out. to lisa's point on consumer confidence, global same-store sales were down something in be the vicinity of 24%. jonathan: more pain in the quarter to come in the gdp report later this week. looking at the fx market, , the breakdown continues. we finally break out of that range to the downside. tom: you nailed that in your morning note out on twitter. i went the other way and noticed -- birthday with the tots. jonathan: are we really doing harry keynes' birthday this morning? lebovitz,g in david jp morgan global market strategist.

why the calm on wall street given what is playing out on wall street? david: i think there is implicit view among investors that something get done. it will probably happen at the 25th our, at the beginning of august, and get retroactively applied to the end of july. but at the end of the day, neither party wants to be liable for a fiscal cliff given the economy at the current juncture, and that gives economists optimism that a deal will get done. tom: what are you going to change, or what are you thinking about changing within your investment structure? david: there are a couple of things that have happened over the past few weeks making us a little bit more excited about opportunities on the value side of the equity market. when you look at earnings season so far, the bar has been set way .oo low

while there have been some issues reopening the economy, i think the u.s. economy and the global economy is going to continue to grow in the back half of the year. you look at what he market concentration amongst the big growers, this is a positioning issue. it is not a fundamentals issue. but i think you will see some investors begin to take some chips off the table. you are already seeing it in the futures data. view,the cyclical value another way perhaps of saying the banks. i know you like the banks here. are you saying u.s. banks, or go all in on european banks? david: we would continue to lean into the u.s.. these are, for the large part, large multinational institutions. i think the european bank story is a little bit challenging given the level of rates and given some of the structural issues we see on the others out of the pond, but certainly more excited about financials in general then we were a couple of

months ago, and getting more excited, particularly if the court we monetary and fiscal policy really does gain momentum across the continent. that could be a pivotal moment for europe going forward, and i think over time, their financial institutions will benefit. jonathan: we talked about them handling the reopening process in a better way than the u.s. then spain happened, and warnings came from the u.k. and germany and france. are we getting a crackdown this morning? david: i think we need to take a step back and realize it is very challenging to control the virus until we have some sort of solution -- some sort of medical solution. we are much better at dealing with cases of covid-19 when we do -- when they do materialize, but to my mind, this was somewhat inevitable. when you reopen the economy, case growth tends to resume because we don't have a medical way of dealing with the underlying issue.

it is obviously not good from a health standpoint, but investors will focus more on the mortality rate and the ability of the economy to remain open despite a backdrop of rising cases like we have seen in the u.s. jonathan: the stop start economy worldwide, nobody is immune to it, no matter how you reopen. tom: we are seeing at the corporate level, i think it is critical that minnesota mining and manufacturing comes out with whatever it was, it percent whatever -- whatever it was, 8% markdown inorganic growth. then we've got mcdonald's, and there's the whole issue with restaurant. how do you jumpstart confidence in revenue until you get the stop-startrom the that jon ferro is talking about? david: that is the key issue. fiscal policy supports remain

essential to the economy coming back online as smoothly as possible. until people feel confident in their ability to go out and go back to their day-to-day, there are going to be limits to how much revenues can grow. expectations on the earnings front and revenue front were too low this quarter, i think because you are still not seeing companies provide any sort of material guidance. but when it comes to getting that revenue growth back on par with the end of 2019, i think you need to see people more thereent in the idea that is some sort of solution if they get sick jonathan: if you believe in the -- if they get sick. lisa: if you believe in the physical element, do you also believe you're throwing your money will -- you are throwing your money away on a real yield basis? avid: i think the

conversation around portfolio construction and allocation has changed here. you are no longer getting paid to hold that hedge. when we talk to our larger clients about the way they are allocating portfolios, they are increasingly thinking about real assets, infrastructure, real estate, both on the private side as ways of generating income without adding equity to their portfolio. there really is no better hedge relative to equities in our view. jonathan: bank of america said yesterday it is the end of the 60-40 port olio. what do you do with the 40 now? david: i think you take some of that credit exposure and redeploy in alternative invest if you are able, or at least think about a broader array of investment strategies. even for investors who focus on traditional liquid side of the equation, option based

strategies, commodity strategies, there are ways of further diversifying your portfolio and protecting against some of these risks on the horizon, whether it be equity market volatility, inflation. the idea that you can own 60% of is 500 and 40% barclays just not accurate in the current environment. tom: i love what you have done with your house. that is the williams college purple, i can tell from here. [laughter] great decorating job, david. david: thank you. jonathan: david, thank you. i didn't have -- i didn't think i would have to say thank you for your patience this early in the morning. [laughter] david lebovitz of jp morgan. it was said to us yesterday that whenever tom brings up soccer nonsense with me, it's because he doesn't want to talk about the red sox. a quick email, and all that said was post game alert for the

mets. did the red sox really lose to the mets yesterday? what on earth is going on with your baseball team? tom: it was the edge of 1986. i expected them to launch the ball over the monster. jonathan: season over? tom: yeah, but we knew that a week ago. [laughter] jonathan: lisa abramowicz back in the building with us. equities bouncing off the bottom. equity futures down 0.2%, negative just six points. what a week we've got coming up for you. a fed decision tomorrow. that meeting begins today. tech hearings tomorrow, alongside tech earnings thursday. is it one for the market? we will debate that in the next couple of days. yield curve up by a single basis --yield curve off by us in the basis point at 0.61% on 10 year. 0.6%, $1930.

on new york's economy, looking forward to the conversation with lieutenant governor kathy hochul -- from lieutenant governor kathy hochul. this is bloomberg. ritika: the battle is on over what the next coronavirus stimulus really will look like -- stimulus relief bill will look like. senator mcconnell unveiled the ill.ublican b the plan would reduce extra hasployment benefits, but $1200 payments to most americans. health officials imposed unpopular measures like closing bars and requiring masks. florida reported his fewest new cases in almost three weeks. texas had its lowest total in two weeks. now states wonder whether they can keep infection rates down

until a vaccine arrives. china is buying american imports, but not enough to hit the terms of the trade deal, according to calculations based on chinese customs agency data. in the first half of the year, china bought about 3% of the total purchase target for 2020. purchases have stepped up in the last two months. the european central bank has asked that banks hold off on share buybacks at least until january. that is a blow to lenders who wanted to return to business as usual. the ecb also asked to show moderation when it comes time to hand out bonuses. nissan issued outlook for a bigger than expected loss for the fiscal year. the japanese automaker expects to post $4.5 billion in operating losses at also plans to skip its dividend. the impact from the coronavirus pandemic has forced nissan to speed up cost cuts. 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. ♪

sen. mcconnell: we have one foot in the pandemic and one foot in the recovery. the american people need more help.

they need it to become friends be and they needed -- to comprehensive and they needed to be tailored, and they needed to be-- they need it to made for this crossroads. jonathan: "bloomberg surveillance." looking into reverse on the euro. down a single point on the treasury yield by a basis point. gold down to $1927. negotiations in washington are going to be so difficult. this comes from senator ted cruz. "there is significant assistance to another $1 trillion.

i think you will see a number of republicans expressing serious concern." this is the conversation right now. kevin cirilli, our chief washington correspondent, what happened this morning? kevin: right now, today and in the next couple of days, democrats are meeting behind closed doors in order to hammer out some type of deal. if you are outside of washington , you've got the right saying this is the best they can offer, the left saying it is dead on arrival, but really, this is going according to plan in the sense that this is the timetable. you've got unemployment benefits expiring friday. there is going to be a lot of political theater. yesterday was the opening bid, and now it is time to negotiate. tom: what happens at the table in the room? do they split it down the middle? kevin: i think in terms of where the money goes, especially now that republicans are saying they billion of0 education funding, that is something that, quite honestly,

up until the pandemic, would have made many conservatives balk, but this is the reality they find them selves and. i spoke with a democrat from new york's 11th district. he said there are a contingency of democrats who would be in favor of some tax relief for businesses, provided that those businesses continue to keep employees on their payroll through the end of the year. so that issue we have been covering for quite some time now really gaining some steam, that businesses could get tax relief if they offshore washington that they are not going to have mass layoffs at the end of the year. jonathan: it is embarrassing to think we will get to the end of the week and this expires without it were placement. it is utterly embarrassing has taken this long. surely speaker pelosi is in a position where she has to introduce an interim bill and put something forward, to make a bridge or something to help the

people that face the expiry at the end of this week. kevin: precisely. ,rom the political angle speaker pelosi has to funnel that anger from the far left flank of her party. let's not forget that progressives like congresswoman alexandria ocasio-cortez are really seizing on this moment as the way to really define the future of not just a democratic party, but how business is conducted in washington for progressives as a whole. the backdrop is the biden campaign continuing to unveil some of their economic agenda, so two very different tracks emerging for the democratic party right now. one, the presumptive democratic nominee unveiling these types of economic proposals, but meanwhile, a new contingency of progressive lawmakers saying we are the ones who are going to be negotiating with republicans in the long term.

expiration jon was talking about of enhanced jobless benefits, republicans are talking about bringing that down to $200 and then have states supplement up to 70% of pre-existing wages. how realistic is it that the states will be able to do that, given the mechanics of their system? kevin: it is going to be incredibly difficult. when i spoke with people at the labor department over the past couple of weeks, they have said that the computer systems, just from a practical matter, the computer systems that had a hard filing foreople unemployment, yesterday i spoke with a senior republican consultant that set up to 20 republican senators right now are on the fence about even supporting this, they feel it is too much money. tom: you sound like a guy in the way -- in the beltway. there's 20% unemployment. maybe it is 10% for months from now.

mcdonald's just cratered same-store sales. 3m just cratered organic revenue growth. therese guys understand is a whole world out there going under? kevin: from those conservatives who are raising these concerns, the ted cruzes and rand pauls of the world, they are looking at their constituents, and this is the reality of the political moment we find ourselves in in america. the reality of new york city and los angeles is incredibly different than the agricultural sector and rand paul's kentucky. jonathan: who are the key republicans to watch right now? senator graham said other republicans will say no. senator cruz said other republicans will say no. who do we watch for? kevin: i think senator john thune, a member of leader mcconnell's operation in the senate.

i think is someone who is playing an incredibly long game here. is deeply conservative on economic principles, but also someone seen as a bridge for the various contingencies like the rand paul contingency, as well as the mitt romney contingency. and senator romney has legislation in mcconnell's bill that is bipartisan that would allow for democrats and republicans to look in the long term about ways to continue to solve some of the small business problems to allow for there to be micro-targeting to small and medium-sized businesses over the long-term. so a trans partisan mechanism tucked into leader mcconnell's bill. jonathan: kevin, thank you. busy day for you down in washington. the good news, at least they are talking later this afternoon. there was a real fear that house speaker nancy pelosi might just

say, back to you. i would point out that mr. thune is from south dakota, where he took just over 71% of the vote the last time he was up for election. ewednesseness -- the sk of the senate versus the house is just were markable. to your question, who do we watch? lisa: it was always going to be difficult. i think what is disappointing is that republicans waited so long to actually unveil something so the negotiation could start. to push the start of these negotiation's right up against the expiry, it might be good politics in some people's minds. it is bad for this economy. tom: i don't buy the idea that new york city is that much different from little rock, arkansas. in their own ways, they are getting hammered. lisa: that is the thing. it is getting more similar. florida was benefiting, now struggling with tourists coming into summer season. jonathan: coming up on this

program, former philadelphia fed president charles plosser. we will talk about that very shortly. from new york, this is bloomberg. "bloomberg surveillance ♪ -- from new york, this is bloomberg. ♪ ♪

♪ jonathan: a massive week coming up for financial markets worldwide. alongside tom keene and lisa abramowicz, i'm jonathan ferro. this is "bloomberg surveillance ," live on bloomberg tv and radio. two hours out from the opening bell, just a faint scent of risk coverage in this morning. futures down 13. at euro against the dollar $1.1738, down about 0.1%. gold on the back foot a little bit, down by 0.5%. yields in a single point on tenure at 0.61% as the two day fomc meeting commences in washington. the fed: -- tom: meeting tomorrow, look for our coverage with caroline hyde. andhursday, tech earnings, of course, the jobless claims statistic.

right now, i delicate conversation. when you are a member of the federal reserve system as charge plosser -- as charles plosser was at the philadelphia fed, you are delicate even in retirement about the fed. we asked dr. plosser now not to be delicate. you invented real business cycle theory. long came up with the phrase and the theory. there's now a raging debate in your racket over the theoretical qualifications of miss shelton to join the fed as a governor. this theory has been criticized. theory?y shelton have a tom.losser: gee, i don't know. he is verys popular in some circles, not so popular in others. but i have to say that during

the course of history, the board of governors has had many people of many different stripes and perspectives on economics and macroeconomics, so i think that if you think judy shelton is a great economist and going to be a great fed governor, that's fine. if you think that is not the case, my guess she will have little impact overall on the way policy proceeds. i think debate is not a bad thing. i tend to be a little more open-minded about the willingness of the institution to respond to these sorts of episodes. she wouldn't have been my first the, but i'm not sure consequences are terribly serious one way or another. tom: the real business cycle

theory always is that of exogenous shocks. you have been given your exhausted shock with the deficit. what will these trillions of dollars of deficits due to our financial system, and is there a certitude that we will see in flation? dr. plosser: there's never a certitude about anything in the future, but i do think that we've had a very serious shock to the system due to the shutdown and the coronavirus, and i think that the large deficits will have their own set of consequent's. we were already in a situation where fiscal policy being conducted in this country was not disputable, and this is going to make matters even more challenging yet i think there is a real problem. my real problem is not just a fiscal policy, but how the fed response to the fiscal policy

and the pressures they are going in fiscalr to engage policy and supporting fiscal policy in ways that may be detrimental for the fed and the economy as a whole. tom: what would be the best way for the fed to execute a lessening of the balance sheet? dr. plosser: i think there are a variety of views on that. my preference would be to let them continue to run this thing off, to stop increasing the balance sheet. the increased balance sheet a lot in a financial crisis. they promised exit, and it never happened. now it is 50% bigger than it was after the great national crisis. so i am not sure where this is going. i think they need to declare their independence and regain ,ontrol of monetary policy independent the fiscal pressures they will be under. jonathan: they just don't make

them like you guys anymore in the fomc area do you think they are suffering from groupthink at the federal reserve? dr. plosser: there's always a bit of that at any institution. i am worried that there is not enough pushback on things. into this and and -- back in 2009, 2010 2011, the risk of it being abused by the fiscal authorities and the difficulties we were going to face in getting out of it, and nobody wanted to listen then, and now we are back in the same boat, except it is bigger, and the risks are greater. be wise ofit would the fed, particularly now, to be more articulate about what the exit ramp looks like from all of this and how they will get out the abuse of the fed for fiscal policy purposes

is even larger now than it was, and i am afraid that it is not looking good. i am concerned that the fed doesn't back enough. jonathan: i am interested in the word of use because the federal reserve, a lot of people would consider that they are enabling this to work with fiscal authorities, and not just he said but globally. many are considering that the optimal way of conducting policy right now. why is it not good? can you communicate that really clearly? is notdr. plosser: it good because the fed was granted independence in order to conduct policy for the long run. and to conduct policy of partisan politics. what we see now is when you lose that independence, when you become more susceptible to politicization, than the fed's

decisions will no longer necessarily be about the best interest of the economy, but whoever happens to have political power in congress or the administration. lisa: are we already there when it comes to asset price inflation? you've got fed officials that have been pretty sanguine. dr. plosser: i am worried that the fed is enabling this. maybe not intentionally, but indirectly, they are enabling the ability of this to go on, and encouraging expectations from the marketplace and other parts of the economy that the fed is the rescuer not just of last resort, but of first resort , and congress has used the fed balance sheet to fund the transportation bill. --2015, the used it transportation bill in 2015. they used it during this crisis to do lending instead of the fed doing it.

there examples of how the fiscal authority is abusing the fed balance sheet, and the fed has allowed this to happen without much pushback. there operating regime of this large balance sheet and their unwillingness to shrink it, and the expectations they have set tofor the financial markets back failures in volatility is only part of a play here, as part of the actions that are supporting and encouraging this lack of independence. i think it is very dangerous. jonathan: from a fellow ash lisa: from a phyllis --lisa: from a philosophical perspective, people talk about the dangers of the fed not being independent. what are the negative consequences from the fact that the fed has taken the action it has, perhaps in your view too much in tandem with the treasury department and the

administration? dr. plosser: the dangers are losing control and patient and political independence. of central banking and politics is not a pretty one. those countries were central banks have become arms of the political or administrative authority and used to substitute more sound fiscal policy and encourage money creation, the history is terrible. the empirical evidence is wrought with hyperinflation, and zimbabwe in germany, you can go down the list. argentina. you can go down the list and see what happens when central banks become pawns of the political authorities. tom: but we did not see that. let's be clear here. coming out of the crisis, many look for higher inflation, and it didn't occur. did it just go over on the balance sheet side? did we simply move the dynamics

of price over to asset inflation? dr. plosser: perhaps, but really what happened was when people said the fed was printing money, but mostly what he did was put reserves in the banking and that's at their. part of the problem and the puzzle, and one of the things i think is problematic for the supply in that money circulation after the great financial crisis, all of that stuff the fed printed, sat in the banks. it didn't circulate very much. so there was no big and is in money supply. they haven't answered this question yet, but if you look at what happened the last three months, unlike the great financial axis when the fed blew up its balance sheet, and this episode there has been a huge increase in money. i am not sure whether it is going to lead to a different outcome are not area kind of depends on what the fed does but i think that is part of the

puzzle, and part of the thing that the fed hasn't really addressed in its review of what their new strategy is going to be. after much criticism to get inflation up to 2%, or claimed they were, with zero interest rates for seven years almost, and inflation didn't rise. now they are talking about planning on overshooting inflation. they haven't been able to get 2%, so what's wrong? that's the elephant in the room here that the fed needs to address, not some refined view of inflation averaging versus inflation targeting or whatever. i think they need a more fundamental thinking about what their policies may be. all of those things impact how monetary policy work. jonathan: i know one thing for sure, chairman powell is happy

you are not in that fomc today is that meeting begins. we are going to leave it there. always fortunate to speak to you. charles plosser, former philadelphia fed president. can you imagine this fomc with charles plosser at the table, virtually speaking, of course? very different conversation to the one that is going to play out over the next 24 hours. tom: it is somewhat generational. we mentioned judy shelton. there has been controversy at the fed, and everyone, particularly those working at the bank of england, would say that is really good to have that debate the fed. it is really important. jonathan: the two day meeting begins down in washington, d.c.. the week really ramping up. coming up on the program, new york lieutenant governor kathy hochul. from new york this morning, this is bloomberg. ritika: with the first word news, i'm ritika gupta.

senate majority leader has to do more than battle democrats over coronavirus relief postal. -- relief proposal. it calls for reducing unemployment benefits to $200. speaker pelosi says she will try to five common ground yet it is likely to be a combative hearing when attorney general william barr testifies today. in a prepared statement, barr says the president has not tried to interfere injustice apartment business. he also argued that the president was a victim of wrongdoing by the obama administration and by anti-trump forces in the fbi. hisident trump spending nearly all of his advertising money to keep states won in 2016.

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. ♪

>> we are facing a fiscal tsunami, a once in a 100 year fiscal to numb a commode has left our infrastructure intact,

but demolished 40% of our revenues. we exhausted on friday the last of the cares dollars that we got several months ago. jonathan: mta chairman and ceo. everybody seemingly looking to washington, d.c. for the next move. good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. here's your price action as we count down to where the opening bell in new york. just a little bit weaker, with a different smelter yesterday. equity futures down 0.4%. $1.1712.ar, after that huge move in the gold $1930.spot gold back to no drama after an explosive rally through this year. tom: i am looking at turkish lira right now, on to new week and particularly record weakness on euro-turkey. right now, a serious conversation, but we must digress at the top with the

lieutenant governor of the empire city. kathy hochul is the pride of buffalo, and she knows quite well that nothing really matters except for the movie "the natural," filmed in buffalo. it was a hugely important and emotional vision of old baseball parks. then buffalo went on to build a jewel of minor-league baseball, pilot field, which is now where the toronto blue jays will play. "bloomberg surveillance" of course sent a note to toronto saying, you've got to be kidding me, how to -- kidding me, hochul has to throw the first pitch. lieutenant governor, would you throw the first pitch for the blue jays? lt. gov. hochul: absolutely. i am not good at it, but i take it very seriously. i watch videos of other first pitchers. i just don't want to bring a shame to my state. beingh stop, you are

political. you don't want to do a -- do a fauci. we will leave it at that. [laughter] there are some any serious issues. you're going to get 100 dollars of school aid from the republican -- $100 billion of school aid from the republican stimulus. is that enough? lt. gov. hochul: what a joke. the republicans now have this crisis in their own state get a couple of months ago, they were saying that there would be no blue state bailouts. that was when it was new york, new jersey, connecticut, and california. today, because no one followed the playbooks that governor cuomo handed them on how to manage a pandemic, we have a isis in the red state florida, arizona, texas, etc. to think -- we now have a crisis in the red states of florida, arizona, texas, etc. it is an embarrassment. a $1 even talk about

trillion plan. that is how much should be going to the state and local governments. that is the baseline just for state and local in order to make revenue, 5t billion dollars in additional expenses which continue to climb every day area don't embarrass yourself -- climb every day. don't embarrass yourselves. turn it over to chuck schumer to get the job done. lisa: a lot of economists agree that the states need a pretty big fiscal bailout or some sort of physical support. there is a question about what the states can be doing with respect to lowering back businesses once the pandemic is over. state,are leaving the leaving the city. what economic plans do you have or are you talking about to try to bring businesses and residents back? lt. gov. hochul: normally, the state of new york is very generous in terms of

, and weizing businesses understand that is a part of our job. that is the bottom line to get people back to work if we do not get assistance from the federal government, how are we going to continue funding the economic ?eveloper land that i oversee tom: i don't mean to interrupt, but as you know, there's 12 republicans in upstate new york fighting for their political life area are republicans and democrats in your state on the same page, or frankly, in arkansas, are they on the same page as saying to the elites in washington, wake up? i just don't see the immediacy in washington. lt. gov. hochul: i don't know what planet they are living on. i really don't. they see theif overcrowding in hospitals, searching for ppe that we have

had to go through. tom: what is the unemployment rate in buffalo right now? i don't have a clue. lt. gov. hochul: statewide it is 16%. buffalo is probably closer to 20%. to say they want to cut unemployment insurance, a year ago in new york state we had a 4% unemployment rate. people were working. there's something that people now want to stay home. they are saying other people just want to stay home. people are being lazy. there's no jobs for them. they want to get back to work area. what is the certitude for conservatives that we are going to pay back all of this debt on the road? lt. gov. hochul: our economy will come back and come back roaring if we can get the assistance of the federal government to get a through a 100 year pandemic.

this is not something we asked for on a regular basis, even though we know that new york state since about $30 billion or two what an annually compared to what we get. look at a state like kentucky that is a taker. we are a giver. we are not even trying to settle that score. we are just saying, can you help us out other national governments around the nine planet -- around the planet? don't do that to your states. we need a federal response. we have needed it since the beginning. heaven help us if you are not figuring out a federal response. we have to make sure they are developing it now. invoke defense production act. don't leave it up to every individual company to try to go to market. we needed federal government response or else we will never get our economy back. jonathan: forgive me for keeping this one tight. --, howon't get the

quickly until you go to austerity? lt. gov. hochul: we need that money now so that it can go to schools and ppe, whatever we need to do to get our kids back to school. if our kids don't get back to school, the economy doesn't come back because he was watching the kids when the parents go to work? it always falls on the shoulders of women. senator gillibrand and i toured the state the last couple of days, talking about a childcare isis that is going to hold back our recovery, and federal dollars are needed for that. jonathan: thank you for your time. please come back soon. that is the story for these states. if they don't get the aid, austerity begins almost immediately, and austerity is the last thing you want area. tom: what is so important, i am getting emails off of the bloomberg terminal from conservatives saying they don't support the thoughts of the democrat from new york. this is a raging battle between the elites and everyone else.

jonathan: coming up on this program, more on the equity market. , citit, tobias levkovich chief u.s. equity strategist. from new york city this morning, good morning. this is bloomberg. ♪

>> markets don't like uncertainty and binary risks which are impossible to hedge. i think buying some treasuries for safe haven makes sense here. >> i don't think we are going backwards. we are going to level off in terms of the recovery. >> i would say we are six months into this. another year and a half, i think we were really start to pull ourselves out of it. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. what an interesting tuesday come on the way