♪ joe: from bloomberg world headquarters in new york, i am joe weisenthal. romaine: i am romaine bostick. caroline hyde is off this week. equities fading as investors weigh the outlook for fiscal stimulus and the path for coronavirus cases. winter is coming. history and science suggest a second winter with the coronavirus would likely be worse than the first.

as the seasons begin to turn, there could be more deaths and of course serious illnesses ahead. city, we saw the new york rate of positive tests at more than 3% for the first time in months. lead to possible lockdowns either officially by the government or unofficially as residents opt on their own to stay home again. the economic data seems to be turning in our favor. we saw data with regards to consumer spending, consumer confidence. it is still a pretty delicate stage right now. joe: there are always concerns people are talking about, the lack of fiscal stimulus, the fact that we might get another wave with the virus. gains inntinue to see consumer confidence. it is hard to see on this chart but it is the biggest one month sequential gain of this headline

measure in 17 years. right now, the arrows are still going up. romaine: if you would to be a glass half-full -- or half-empty, i should say -- you look at the idea that we have not quite recovered from pre-pandemic levels. this is a subsection of that data which shows the amount of people looking to buy consumer appliances. definitely a big rebound. joe: you need to go by a new wine fridge. romaine: washer-dryer. i tried to buy a fridge, you can't even get one. joe: joining us committee chairman of the white house counsel of economic advisers. there continues to be some discussion about the idea of another round of fiscal stimulus. i think market expectations are not particularly high that it

will happen. how confident are you that this recovery is self-sustaining and on a trajectory to get to precrisis levels of activity without further aid? >> the consumer confidence numbers, this is a substantial torease from 106 -- from 86 101.8. we saw a big increase in consumer expectations. is level of that so be index at a higher level than at any point between july 2004 and november 2016. consumers are expressing greater optimism about business conditions and the labor market. there is a long way yet to go. that is why the administration has remained committed to achieving bipartisan legislation that can pass both houses of

congress and that the president can sign into law that would provide a reload of the patient protection program, that would provide some targeted enhanced unemployment benefits for americans, and it would provide funds for schools to reopen. this has been a tremendously fast recovery thus far. i think if you had asked any of us in march or april if we would in this situation today, i think even the most optimistic of us would not have expected that. the nonpartisan congressional budget office, we have really smashed those expectations. romaine: it has been a pretty fast recovery. there are concerns about it stalling out with the idea that with unemployment levels still where they are and the fears, with covid not being beat back not you can see some people

go out and spend money in the ways you expect them to. to encourage that kind of economic activity, beyond the fiscal stimulus, what are you guys talking about in the white house that would create more stimulus? >> we are definitely focused on the things that help schools and businesses safely reopen. fastestl facilitate the labor market recovery. that includes the second round of the recovery program, things to really help this labor market recovery continue. perspective, in four months, we have regained 50% of the jobs lost. took 56 months to

regain. the recovery and aftermath was unprecedented in its weakness. it took 77 months, that is 6.5 years, to regain the employment levels at the peak. that was historically unprecedented. in very good stead right now and focused on what we can do to sustain that fast recovery we have observed in the four-months to date. big difference between this crisis and the last one, these were explicitly temporary in many cases. meanwhile, permanent unemployment has continued to rise, the number of people saying their job losses permitted has not started -- their job loss is permanent has

not started going down yet. the long-term negative effects from business closures, permanent unemployment, rebuilding the full productive capacity that we have. upon aink you touched very important point. estimated 80% of the job losses in march and april are expected to be temporary. that is not accidental. when you have a 3.5% unemployment rate, that means you have some high quality matches. when you have the labor force participation rate of the previous expansion, that means you have a lot of people actively searching for work, so you don't have that atrophy of skills when people fall out of the labor force. the aftermath of 2008-2009.

we focus on the paycheck protection program, employee retention tax credit, eight to small businesses. to make sure we could help firms get through the crisis and retain employer-employee matches so that the layoffs in march and april would be temporary. it is a response to that shock that most of the losses in march and april were expected to be temporary. romaine: later tonight, your boss be on stage making his case for another four years in office. the next fouror years should he win, do we have a sense with regards to the policy positions that the recovery will be equal in measure? i mean that with regards to the differentials we have seen, black-and-white employment, wealth, the gender gap, etc..

excellent an question. i think that when we look at the record of the trump administration, the deregulatory policies, the tax policies which we hope to continue it expand upon. when you look at the record of that agenda, the record is unequivocal. inequality declines during the three years of the trump administration, during the two years following landmark tax reform. anyway you measure it. wage inequality, income inequality, the ratio of income growth from the 90th percentile to the 10th percentile. ishink the economic aid unequivocal that the policies undertaken by the current administration help to attenuate issues of inequality and deliver

real economic gains that we have simply not observed. in one year alone last year, the typical american household experienced real income gains that exceeded that of the previous 16 years combined. i think that is a staggering statistic that has not received sufficient coverage in the past week, we can a half since that report came out. is tylerthat goodspeed, acting chairman of the white house council of economic advisors. tune in here tonight on bloomberg for full coverage of p.m. ont debate, 8:30 bloomberg tv and radio. coming up next, we will continue our focus on the threat that rising covid cases could have on economic recovery. we will look at new york city and the virus positivity rate

rising. this is bloomberg. ♪

romaine: today, we are focused on the potential for a second surge of covid cases globally and what it means for the economic recovery. right here will be are sitting in new york city, the city said earlier that the highest daily positive rate of tests in a number of months. joe: the absolute number of cases in new york and the positivity rate have been low, but it really has been in the last several days that the warnings have got louder about particular neighborhoods, particularly brooklyn and queens. we got the news today, positivity rate well above the seven day moving average.

were to behat sustained, that could put school openings back under threat. all kinds of concerns in new york. romaine: this is a global issue. you look at the rate of new infections and how they have been averaging, i guess the one thing that has caught a lot of people's attention, it never really came down. there was a sense that we would begin to plateau and come down. a high rate of flu season typically here in this hemisphere. you would expect that line to start going back up. -- now, the concern is what happens if these cases start to go back up. uptick inve seen an the absolute number of cases in the u.s. over the last number of weeks.

some concern about whether this is a case of a meaningful rise or a function of more tests? what does your reporting indicate on what we are seeing? >> will we talk about the results of tests, for sure, they tell you how many are out there. they do not increase the number of cases, they only increase your view into them. what is immovable is things like hospitalizations and deaths. it is a function of what is actually happening we had seen decline in hospitalizations and deaths even as cases were increasing, but now everything has plateaued, we are starting to see an increase. we know that the virus is going to be worse in the winter when people are indoors and the hot, humid air has settled down. guess a when we talk i

little bit more regionally year, is there an idea that maybe certain parts of the united states would be more susceptible increase in cases versus others? >> we have seen over the past nine months that it is very regional. we saw that first outbreak in the new york area. of course, that was happening when people work inside. then we saw, in the south, as the heat increased, so did the cases. sois too hot to be outside, everyone goes inside and you start to see those increases in rates. people are going back to school, we are starting to see a lot of group planning, fewer masks and social distancing. we are really seeing a roller coaster happened across the country with each area

experiencing different outbreaks at different times based on what is happening locally. joe: let's talk about new york city. the positivity rate above 3%. not good news. it still looks like a lot of people are wearing masks. still a lot of people not going to work in their offices. a lot of people will have antibodies from having gotten it earlier in the year. are these regions to be helpful or encouraged that even during a winter wave, it will not be like it was previously? >> it seems like in new york, he will not be as bad as march and april, if only because we did not know what to expect and many people were not social distancing and wearing masks. we have seen studies that up to one third of people in new york

city and even higher in some areas, do have signs of immunity to the virus. good news about what is happening in new york and new jersey. that being said, there is absolutely concern that whenever we have the opportunity to take action, to get takeout as opposed to eating in a restaurant, to have fewer people, all of those little steps will make it easier to avoid the big steps. joe: rate reporting. i encourage everyone to check out your latest story. coming up, another story you may have missed, one of the biggest tax in the history of crypto. heist thatde the almost brought down the world's second-biggest cryptocurrency. this is bloomberg. ♪

romaine: some breaking news on disney. the company saying it plans to lay off 28,000 u.s. themepark workers. disney saying that most of these folks are still on furlough. disney shares falling a little bit here in after hours. we want to pivot from that over to the world of cryptocurrency, a story that you may have missed. theory,ocusing on a which you know a ton about. which you know a ton about. joe: this year, cryptocurrencies are performing like regular assets. kind of interesting, it sort of shows how much this space has matured. but it has not always been this mature. for more, i want to bring in the author of the new book, "out of and ther: ethereum

heist that almost destroyed it all. that was like the greasy old days. those days, it almost destroyed the whole thing in one act. >> [inaudible] $150 million -- by the time the of 2016, a in june quarter of a billion dollars into contract. everyone around the world was downto watch as it rained piece by piece until about $55 million was stolen.

there was nothing anyone could do about it. having some audio problems. we are going to try to reconnect in a minute. in the meantime, i want to bring you the latest on disney. that company having announced the permanent layoffs of 28,000 people. so many of their parks have had issues, shutdowns and diminished attendance throughout this crisis. perhaps this has dragged on for a while. afterock is now down 1.5% hours. the company sending out this statement about making furloughs permitted. romaine: just a couple of days ago, reporting a bloomberg that california was just waiting to release guidelines on when these parks would open. they have basically been shut down for about six months now here in the u.s. we have the one in california

and of course that gigantic one, walt disney world, in florida. the fiscal debate still going on in d.c. part of the premise of four-month expanded unemployment was the hope was that people would be returning to work. onaine: more breaking news peter thiel's palantir. aterence price being set $7.25 per share. not an ipo. this is a direct listing. basically a way for those investors in this mega uniform -- make a unicorn to find an exit point if they need to. a company that will largely be controlled by peter thiel.

thesee have had a lot of sort of red-hot software ipos. this one is kind of in a different business. wherenot like snowflake it is some superhot cloud amazon web service competitor, it is government tech. it is different. pretty interesting to see how this trades, what kind of multiple it ultimately commands. videoe: did you see the that alex karp, the ceo and cofounder, put out, where he was basically out biking in his spandex? basically, in that pitch, he made the pitch that, if you don't like how odd pelletier is, don't invest in it. joe: they talked about not liking the groupthink mentality

of silicon valley. it will be pretty interesting. in a year when people are valuing software companies extremely hot, it will be really interesting to see how they compare with some of the other hot names. romaine: just remember, if you are an investor in this in the secondary market, you will basically not have any say in what is going on. when you want change has an investor and all of the shares are basically controlled by the founders or the main people running the company, it does not leave you any real options. joe: i still don't get the complaint. just sell your shares. that is the true shareholder democracy. romaine: you sound libertarian. who knew? excitingbeen an conversation but that is all for "what'd you miss?"

joe: this is bloomberg. ♪

chang in sanily francisco, and this is "bloomberg technology." coming up in the next half-hour, pelletier could reshape the path companies take to wall street. we will discuss the direct listing on deck for tomorrow. plus, president trump and former vice president joe biden will take the stage