Really, all eyes are on the treasury markets today, where ae 10 year yield is at 11 level we havent seen in a while. There was a bit of a joke this morning when we got the mammoth refunding announcement. Crude oil, down 5 . There was a boost after inventories were lighter. Back downown to now at 2330. Disney, moving today after earnings were not as bad as people maybe anticipated. Up one quarter of 1 , they got a boost of about 4 after earnings. Lets get to taylor riggs now, standing by with a deeper dive into todays action. Taylor folding that into Something Else we are doing on the yield curve steepening, between the twos and attends. And the tens. Some of the stimulus programs we have announced, the treasury this morning announced plans to sell twentyyear bonds, you are seeing a steepening of the yield curve as you expect more supply to come. I want to flip up board and talk about technology. Isney, the tech index positive for the year. Its the only sector in the s p 500 back in the green on a yeartoyear basis. Moversis one of the big in the sector, given earnings were better than expected. Other earnings we are following, they are rising on surging pickup sales, giving mary barra a bit of a side really here. Relief in china when it comes to vehicle sales with a scramble to fill prescriptions that is helping cvs. Doing a very good job of filling the online prescription orders as we all stay at home. Finally, when these of course has been shifting a lot of their focus to chicken, given the meat supply disruption. Full but over into beyond meet, up 25 after seeing a lot of growth within the retail and Consumer Division despite the restaurants being closed here. Taylor, thank you for that. Com Infrastructure Company a dot come Infrastructure Company restructuring canadas 19nfield as the covid pandemic continues. Joining us now to discuss this to takeganzi, slated the place of tom barrick. Congratulations. In this era of stayathome and , why was this the right time to do the deal on the Canada Telecom infrastructure writer . Marc good afternoon, thanks for having me back again. Its a unique time for us. To getme we had a chance together, since then, we have been active. The recapitalization of bean field is a good example. The growth in Cloud Computing and applications, with Broadband Connectivity, being field provides that connectivity in toronto and northeast of canada. Us,as a great platform for a chance to grow the asset base and manage our multiasset opportunities for acquisition. A perfect storm, really, for Companies Like yours at the moment. People workingr, from home, the likes of netflix adding subscribers, all of these work from Home Companies depending on your infrastructure at the same time that capital willingare very, very to provide financing. What must it be like to be you . Its up quite early and to bed quite late, but i think the credit markets are telling us that it is open for good stories. Open for companies with a long history of operating strong Growth NetworkCompanies Like ourselves building out the missioncritical infrastructure. You are right, we dont survive without our customers and our job is to enable and support them. Netflix, subscriber growth. Microsoft, adding many users per week. Zoom, up 2 million users. December of 2019, that was only 10 million. Think about whats happening in terms of the explosion of connectivity and have digital will pull us through the pandemic. That said, its a stressful, the opportunities are coming to you on a plate, but if the work from home environment doesnt last or the Consumer Behavior that we see now reverses, will you be in trouble . Marc i dont think so. In a coming back up to the highest level across the digital portfolio, we have had a longstanding leave the dont put a lot of leverage on these businesses. While it was an opportunistic financing for beanfield, we own 23 billion in assets and only have about why. 8 times leverage across the folio. To give you a sense of loantovalue, thats 46 ltv mostthe nearest maturity, of those to 24 and 2025. Thoseto 202 taylor 2024 and 2025. Vonnie it appears that banks are getting more difficult to borrow from. Standards are going up. Where does it end, mark . When does it not make sense anymore to borrow . Marc i think we measure this in a total return environment. We are looking at the total tolerance for risk here. Once again it gets back to retesting assumptions around risk. We are looking at something close to 70 different transactions in our digital business. Not all get to the goal line. Pipeline is in deal flow, so we have to be careful investorscators and have given us their capital to put it to work in digital infrastructure, but not all Digital Deals are good ones. We are finding that we have recalibrated risk. What does it mean for us question mark we have changed the exit multiple assumptions, the costs of the debt, the covenants, the turn assumption, the organic growth, and ultimately we have got to get rewarded for taking the risk. Total returns have to go up. You keep pushing and pulling and ultimately it comes down to being a disciplined buyer in the environment and i think we have managed to do that over the last few months at colony. You have peers and competitors looking at the same deals in the various verticals of your business. Howdy you decide if a deal is priced attractively enough or if you can allow a competitor to come in and make a bid first . For us, most of these platforms are led by great management teams. Dan armstrong is a phenomenal ceo and when we bought the business, we were investing in him and his vision for Broadband Connectivity in northeast canada. Or me as a ceo, when i make thats another management teams and other platforms, its about the people. Looking through it and how they treat their customers and how to providing the service. Look at the deal that we did in back in the early part of april where we had an incredible Business Leader who was a thought leader in hyper scale computing and building out massive data centers. First its about looking at the people, looking at their relationships. We do a lot of diligence with those ceos, thats critical. Around the world in many places, coronavirus has been patchy in where it is attacking. What are you seeing from europe . How attractive are the opportunities there, relative to the United States . The entire, latin america is really dynamic. Some of going through the same pressures we went through a few months ago. As the seasons change, the virus will accelerate and you will start to see the ramifications. There starting to see ,ressure with historic levels all the way through buying the Data Center Business and the assets in our platforms. We look at that in late december when we bought the towers in brazil. We like brazil as a thematic. We think what is happening with the conversion to 4g networks and Cloud Computing, the thematic outweighed the currency trade and we picked the right window to enter. Ultimately, the big bet is a lot of growth in brazil right now. We look forward to hearing about other deals as they come up. Ganzi is the incoming ceo of colony capital. From new york, this is bloomberg. The World Health Organization is looking for a new mission to seek the source of the coronavirus in china. Speaking today at a press briefing, a who epidemiologist said that without knowing the animal origin of the virus, its hard to prevent it from again. Ng she took part in a previous meeting in february that found animal based in origin. The u. S. Supreme court is hearing a dispute today over Trump Administration rules that would allow more employers who cite religious or moral objections to opt out of providing nocost of Birth Control to women. It extends from an Obama Health Care law. Because of the coronavirus pandemic, the high court is hearing arguments by form. Ruth Bader Ginsburg is participating from a maryland hospital and has an infection caused by a gallstone. A warning today from the European Union executive arm, they were facing the deepest economic downturn in their history and it threatened the future of Euro Currency if badly handled. The regional economy is set to shrink 7. 7 this year because of the coronavirus outbreak area global news 24 hours per day on air and on quick take by bloomberg. Im mark crumpton. This is bloomberg. Vonnie with global food supply disruptions and lockdowns, restaurants have been the hardest hit according to the cisco ceo. Alix steel spoke with him earlier about how his business is preparing for a post virus environment. [no audio] the first thing we needed to liquidity in the company and we have succeeded in that, for sure. Taked, we needed to germanic expense out of the business, matching outbound customer demand. As communicated yesterday we have taken costs out of our expenses and in q4 we are on a july 1 financial calendar. The third is maximize opportunities in the near term. Fourth is what the future looks like. You know, how do we prepare for a new Business Environment and climate . How do we ask succeed in that climate . Directly tied to your question, as i mentioned earlier we anticipate going back to school. Thats a big business for us. Restaurants will recover and the speed with which they recover all we are prepared for it to take a long time. We hope that it happens earlier and faster than that. We believe the slowest recovery will be in the hospitality sector and we are planning for that as well. Two points i would like to sy unicate by visavis room tohave tremendous grow in a roughly 300 billion business. Even if it were slightly smaller in the future, which we dont believe it will be, but if it were, we have potential tremendous upside potential. We have 30 of customer share bought under strategic conditions, as i was referring to, increasing penetration with existing customers and an opportunity to grow topline profitably in a post covid environment. Alix in an immediate world, can you give me insight into the protein world, when these talking about shifting their marketing focus towards chicken because of beef issues. Where do you see the problems and deflation . A great question. The protein space in particular is under strain at this point in time. We are open for business there across all lines of business and we have access to product. Redundancy and suppliers, strong relationships with those suppliers without significant sources of supply challenges. There have been reports in the industry. When these as you described, has gone public about some challenges. I would submit that they will be timebased and specifically category based. There will be plenty of protein to be purchased in the grocery channel and away from the home. Theyre very well might be a specific kind of meat or product category for a short amount of. Ime, absent supply challenges im confident that we are operating in a safe manner and toing the proper precautions protect the work force. I would say the challenges that we are seeing will be shortterm, not endemic to the industry. Alix final question for you, we have about one minute left, what kind of restaurant will i be eating in in two years . Kevin thats a great question. What is clear is that fast food restaurants with drivethroughs are performing much better, which makes sense, right . They are doing quite well compared to others. The hardest hit have been the locally owned, small restaurants in your community and we are working harder than ever before to help those be successful. We taught them how to keep their head above water, financially, and are doing a campaign right back. Lled takeout to get the hope is that the majority of these restaurants will be successful. We have seen an increase in bankruptcies. Year to 18 months. I would submit that those are for the longterm and many of those people will be getting back into business in a new location. People want to eat in their local restaurant. The trend is locally sourced, farm to table, someone that you know who owns a restaurant and i think of the long term we will get back to equilibrium area equilibrium. Benie still ahead, we will speaking with a Bloomberg Opinion columnist who volunteered herself to be part of human testing for the coronavirus as a part of the process to find a vaccine. Details, next. This is bloomberg. Vonnie this is Bloomberg Markets, im vonnie quinn. For theor a cure coronavirus a race for a coronavirus x seen, coronavirus vaccine, how it is done is you deliberately infected volunteers with the virus. These socalled challenge trials speed up testing and might help us understand the Natural Immunity of those infected. Faye flamm signed up to be one volunteers and joins us now by phone. You are rate human being. Im curious as to what the process was like, how long it you, and how long before knew you would be ok . Faye i havent done it yet, i just signed up. I put my name on a list of people who are willing to try this. Vonnie so, did you receive doctors arem scientists, yet . Do you know anything about what you will be involved with . Faye they dont really know. About 70 are being tested for safety in humans. They are looking for, some people are thinking they might be good to do some shortcuts here because we need the vaccine so desperately. One of the ways they could take a shortcut is to do what they do in animals, but more carefully in humans, exposing people to a small dose of the virus to see if the vaccine works as opposed people,vaccinate in sending them out to the community, which might be a slow process if we are under a lockdown. Vonnie it does seem brave in this case, we dont know much about this coronavirus. It seems to be random in who it attacks and it goes for the most vulnerable. Seemingly the very strong. Who might be a good subject for a back trial . That really was one of the points of the column. One of the First Principles of medical ethics is informed consent. Its more than having people just sign a form. The best subjects will be people with a science background, people who are possibly medical students or scientists themselves, or science journalists who have many sources who are experts. People who can really become extremely wellinformed. If they called on me to say they wanted me to be in one of the trials, i would have the resources to be able to talk to smart experts and say, is there anything i should be really afraid of fear and if they say that this is a smart looking way to do this and the benefits to doing the trial will outweigh the risks, i dont really feel hesitant about doing it. Vonnie scientists are invested enough that they are looking at several different vaccines. Do you get a choice in what you sign up for . Faye i think the way it works is that the vaccine makers will decide what works best for them. If a challenge trial is done, there may be one that is tested and another put into the community instead. There are risks to both approaches. Depend. It will really the important thing is i will have a chance to do research and make sure that this is a reasonably good riskbenefit ratio. Vonnie please keep us updated, faye. This is bloomberg. President trump now says the Coronavirus Task force is just refocusing. On twitter, President Trump praised the task force. This comes less than one day after signaling the task force would be disbanded. Wouldd the task force shift its focus on rebooting the u. S. Economy. Vladimir putin is cautioning Regional Governors not to rush to ease the rock down lockdown. Third contracted by one since lockdowns were in first enforced across the country. Said quote any negligence or haste can turn into a bracket breakdown. Are likely to begin easing the lockdown on monday. Boris johnson says they will unveil specifics on sunday and has unveiled a target of 200,000 virus tests per day. They were slow to react to the crisis. There are more than 200,000 cases and more than 30,000 deaths behind the virus death toll in europe. Global news, 24 hours a day on air, on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Live from toronto welcome to Bloomberg Markets. By ourre now joined audiences. Here are top stories we are following from around the world. Investors are weighing another round little economic numbers as new abp data Shows Companies cut a record 20 million jobs last month. New york city says the Unemployment Rate a triple as the coronavirus ways on the economy with more than 900,000 people losing their jobs. Present trump says americans should start returning to their everyday lives even if it means more people will die. ,isney is at with earnings saying profits plunged by as much as 1. 4 billion. We break down the numbers with a media and entertainment analyst. Ext lets check in on the markets. Shery it has been a bit of a sloppy session that brought us negative and then briefly positive. This broad market is not too bad are showingaknesses up in the yield curve there. Their comments from Steve Mnuchin but the sheer size of is playing with the curve a little bit today as its deepens. Disneykeeping our eye on that reported after the bell. Its yet another company showing a cloudy outlook and the very real costs of covid19. Just on balance, disney obviously has a lot of brick and mortar places that are frozen at the moment. Context, do you make of the quarter . Turned out more brutal than we thought. Here isg to realize that the companies that are going to come out of the other side strong Balance Sheets with good liquidity, as much of the portfolio makes it very vulnerable, there is some Silver Lining we took out of the call. Havingeaming business some tailwinds from this confinement, that all in all, the way that i went about it was that the company has north of 30 billion in total liquidity so there are really no concerns with flexibility here. If we can get through the next few quarters where the pain will probably be more than what we at, youre probably looking orders of magnitude for the june quarter. As we said, there is a Silver Lining here in the new coo has really articulated his vision and investors have taken confidence in that. Thats why you see shares trading down today. Expected disney plus to be the saving grace in these earnings. How well does it perform and compare to others . Growth at a disney plus has been nothing short of explosive. The latest step they gave on the call was 54. 5 million global subscribers. If you think about the trajectory in just a little less than six months, it will be nothing short of phenomenal. That said, the segment in the company is still in the heavy investment mode, looking at a billiondollar loss for this quarter. Plus, no question that its going to be wellpositioned for these streaming wars is one of the ultimate winners here. You have cut both fiscal fullyear earnings and 2021 earnings. Is that a reflection of the pandemic . Its a little bit of both. Shanghai disneyland is going to reopen next week but that is only to a relatively limited capacity. Like businesses advertising are taking a major hit as a result of the pandemic. Lines, i told her it would be among the worst hit. It could be ratcheted down the street or even further once we get more visibility as to the potential timeframe for the reopening of the parks. Companies are going to emerge from this at a very strong that could position us to exploit the demand we see, whether it will support viewership or other theme parks or etc. This is really a longerterm play for the next two quarters or so. Of a black hole will espn be until we get live sports back . Thats a great question and it is up in the air, though it is anyones guess at this point. But what i like that they have is work withnterim itself and some original , whether it is the Michael Jordan documentary or the streaming of the nfl draft. Theres really explosive there it is going to be undoubtedly the result of as mass cancellation of college overall, theyre doing everything they can to make sure they stay relevant in the landscape and hopefully the landscape. Shery thank you very much. Amanda coming up, President Trump is saying his Coronavirus Taskforces here to stay with a renewed focus on reopening the economy. Next, we speak with the president and founder of this plant. Of amobi. Amanda welcome back to Bloomberg Markets. Some comments from President Trump is a short while ago from the Oval Office Just a short while ago from the oval office. Tosaid he was responding Public Task Force will be can on monday will reconvene on monday and then exist as long as necessary. He also commented on the high unemployment numbers, saying the spike is artificial, temporary, and that he does not believe anybody blames him. The flipflop on the task force may be a little on reassuring, ofis an interesting question the guidance that this white house has shown on covid19. Do come down on that . Is any of this attached to trump longterm . Sure. We are going to experience the worst economic recession of our lifetime. Even if he were a fantastic lifetime a excellent president executing on everything welcome he would still take a hit, and of course he is not. Takehing he is eager to credit for is that he did shut down travel from china relatively early when others did not. That helps. But he was not on it in terms of helping unified health care and the critical, medical supplies that we need and he has abdicated in terms of a lot of leadership in reopening economies. So finally, he has been strong on the economic side, which is bipartisan. In the fed has a very effective and the fed has been very effective. At best, he has gotten a middling grade in a polarizing environment. Remember, after 9 11 president bush had a 92 Approval Rating. Trumps highest Approval Rating so far was 46. Dynamic, we are now seeing the blame game played out against beijing at well. Pointent trump at one claimed that beijing wanted to damage his reelection campaign. When it comes to the u. S. China relationship, which is better for beijing . President trump is so spontaneous or there is a potential he democratic resident in the white house a potentially democratic president in the white house. It is a controversial question. Feel like u. S. Politics towards china will be more problematic Going Forward irrespective of it is trump and biden. The few issues that you see broad bipartisan agreement for within the United States. Biden is much more focus on human rights issues in hong kong. On trump, you get a much tougher line on South China Sea and security issues. They are both hard line on economic practice, ip theft, and technology. Leaderse where senior come out actually preferring trumps they think that he has so alienated relations with American Allies that it provides more space for the chinese to operate. They wouldnt say that feel strongly about that. Trump says the chinese wanted to lose. Want him to lose. That is purely him posturing. It is purely domestic politics. Shery as you mentioned, how much of an opening does this provide to china . Trying toen them expand influence in places like latin america and africa. Now, are we going to see an ideological battle where these developing nations will be forced to choose between the chinese style of government versus american democracy . Its important you mentioned the developing world. Of course, canada is not looking at that. They have no choice mexico has no choice. Wealthy europeans are largely aligned with the United States. But when you talk about core countries, like subsaharan africa, 8 of their external debt is with the chinese so even if they wanted to, there isnt another credible option. China has belt and road in the lead state has nothing comparable. Add to the fact that the chinese supply chain is back up and running this summer, certainly you were going to see more among the worlds poorest countries towards china. Notits because of that, because the chinese are doing so much in humanitarian aid. They have overstated that. Its not because they will lead a bailout of the poorest countries. The imf will still play the biggest role. Amanda i want you to weigh in on a bigger piece of the conversation. That is whether or not inflation will be a thing we have to fear. Not yet, and i certainly think that coming out of this, markets are telling you that they still feel pretty comfortable that you are not going to have that problem nearterm people will still slide to the dollar because they are worried about the competitiveness of other economies. Longterm, with increasing indebtedness and americans out of work and an unwind of globalization unless quality growth, you have to worry about inflation increasing. The debt is going to have to be paid. Whether it is from poor biden, he will have a much more challenging environment into or three years time but i clearly think these relaxations will come against the corporate environment. If you are hoping they will be leaders on the social contract, their challenges will grow. Shery always great to talk to. Talk to you. Coming up, cybersecurity in the age of covid19. This is bloomberg. Shery this is Bloomberg Markets. A top citigroup anchor is resisting the potential future that could make work from home the new normal. Interview, it was said that there may be demand , but theyinteraction may have to prepare for an efinite time of about indefinite time of work from home. Joel joins us now over the phone. Great to have u. S. You with us. When the pandemic hit, everyone was scrambling to get their machines set up to work from home. Is everybody considering cybersecurity . Absolutely. We were lucky enough to have some customers already set up and that was making the move to security medications very easy for them, but the reality was that people were just moving to the first they could get on and security was not necessarily the first consideration at that in time. E shery how does a company like her capitalize on your security strength . We capitalized by being complementary. Had their own Critical Service issues as well. What we do is another chimed of encryption security and that is just something that is not projects where people are trying to have as few number of clicks to get going. There is a bit of a scramble for them to build things into the products to get secure, but the reality is they are very architecturally different. We are able to help and we sit alongside other, less secure projects products and it is a good airbag, if you will, for people driving fast in unsafe cars. And there were some highprofile cases. Do have a centralized server and you were collecting all of this data. That is the Business Model these products were built to have a centralized server and these are not trying to break things and understand where vulnerabilities existed. Companies had all of their eggs in a single basket. Do Something Like we , itand to end encrypted provided Different Levels of security for the enduser and organization. These architectural ships are hard to make and what we will see more is situational use cases. But aftermore glib, hours is great on zoom, but if you are doing something critical to your organization, you need to pick something that is end to end encrypted. Of this changed behavior will persist as we begin to see reopening . What are you planning for . We are planning for it to be persistent. Dour but theres a lot of predictions about what will happen. The Silver Lining here is that some of our customers were prepared for this pandemic and that was mainly because they were in a position where they could measure the efficacy of their Remote Learning efforts. This is not a Service Provided by wicker at all. One thing i would see coming that is important for everyone is to anticipate that there will be another wave. But beyond just Technical Solutions in place, we really have to understand and measure if the workforce is getting things done. Extent, this might lead to people realizing that these huge costs are really not what they need to be looking forward to in the future and they could have remote workforces that are as effective, if not more effective , then into an office space. U. S. we are hearing the and u. K. Warned that covid19 research is under hacker attack. Will we see more in the coming months . Wherek, we are in the age any time anyone has done anything, there will be some sort of adversarial model. I have been tracking the responses on stocks and they are up. Have certainly taken advantage of this remote work. Shery thank you very much. This is bloomberg. It is 2 00 in new york, 7 00 p. M. In london. I am scarlet fu. Romaine i am roaming bostick and this is Bloomberg Markets the close. We want to bring you some headlines. President trump speaking earlier today after meeting with nurses at the white house saying the Coronavirus Task force could be potentially shut down. Trump said it will be around until it is not necessary. He talked about the spike in unemployment everyone is expecting to see on friday. He calls that spike artificial and says the jobs will come back. He touched on a variety of other topics, mainly saying the task force will continue to do its job and he will continue to monitor the economy. High ined out fairly u. S. Equity markets. We have been swinging between gains and losses on t