The dollar index is a strengthening a little bit. The dxy is above 97 today. Decisionmaking the 10 year yield at 70 basis points. Crude oil not going anywhere today. 36. 37 a barrel. Have seen an interesting two days. Equities having their worst day since march and much like march, any day we saw declines of 5 or more, we followed that with a rebound today. A lot of this we have seen play out in the session so far. I want to note that the european closed a few hours ago, we saw stocks fall below yesterday indicate investors taking some a risk off the table as we head into the weekend. See if a similar phenomenon happens at the u. S. Close. He said he is watching very carefully to see the gains on friday and again into monday. Speaking of risk and the willingness to take it, something we have been talking about is the willingness of retail investors. Of thosento some cheaper areas of the market like travel. That has led them to outperform hedge funds. They are more heavily position towards the stayathome stock such as technology and health care. On the chart is relative to hedge funds. We see a similar phenomenon play out in the retail names that are leading the way. Travel stocks some of the best performers in the s p 500. United and American Airlines up 14 . They outperformed in todays session. It is the only stock positive on the day in the s p 500 and the thursday session. Today it is lower by about 1. 7 . Seen some have outside moves this week. The rays of capital by selling stock. It is bankrupt so what is that signaling about the rally . Kailey they want to sell 1 billion more in stocks. They have asked bankruptcy judges to do this. Retail investors are eating it up. Hertz admitted this stock could end up worthless. In bankruptcy shareholders often dont get a lot at the end of the proceedings. Havedoes not seem to investors shy away from this stock. Sure they did yesterday but they are buying it right back today. Over the past seven days hertz is up 250 . Whopping 2. 86 a share. As the nation slowly emerges , bloombergs Erik Schatzker spoke exclusively with josh harris about the Coronavirus Impact he is seeing within his firms investments in the state of sports in the united states. The future of pro sports is bright. Obviously we are at a reflection point in pro sports like other parts of the economy in the world. Happened in the absence of pro sports in todays environment, the lack of inability to play because of safety concerns across the world. Im sure your audience has felt it. I miss watching sports. Sports brings us together as a community. It unites us. It doesnt matter what your color is, your economic background. Obviously we have a crisis going on in our society. In sports, particularly sports andinvolved with the nhl particularly the nba, we have a real role to play in terms of not only speaking out against systemic racism that exists in doingountry, but also something to change what is happening. Erik your players are speaking out. This is a forum for you to speak out. Tell me what you have to say about the issue and tell me about the action. The things you plan to do to fight it. Josh what i need to do is not and itand for that changes some of these systems , it ise and give money incumbent enough to put people of color in leadership positions. To make sure they begin to have the same opportunities as everyone else that is in of color. To eliminate bias in the workplace. Want to be leaders and alternatives, onto be leaders in sports in terms of that. No matter how far franchises go go sports is a racial hierarchy. Whiteingly light owners and mostly black players. With that as the context, how far do you need to go to support player empowerment . 100 support player empowerment. Erik what does that mean . Josh it means encouraging your themselves ess express themselves freely. It is something we believe helps make the world a better place. Leadership, the issue of doing them the courage to speak out. Erik i want to go back to the economics of pro sports at a time of the coronavirus pandemic. Are the economics of pro sports as long as you cant feel arenas and stadiums . It is real. I wont lie, we will take a shortterm hit. When you think about franchise, you look at how much people missed sports and how much they want to watch it and its ability to bring communities together. The ability to highlight the types of issues. Erik given what you have done with the devils and sixers, there are a lot of new york mets fans who would like to see josh harris and David Blitzer come in as an Ownership Group there, have you taken a look at that . We never really comment on things that we are looking at. That is the the mets are a storied franchise. We dont talk about things we may or may not be looking at. Vonnie the exclusive interview with josh harris. Let us get some first word news with mark hilton. Mark larry kudlow says Health Experts are not seeing a second wave of coronavirus infections. Hes echoing other officials and saying the u. S. Economy will not be locked down again. Texas, california, florida, and alabama are among states were actions and hospitalizations are reaching new highs. European union regulators have been given a green light to pursue deals with Drug Companies on developing a new coronavirus vaccine. European commission will be seeking agreements to by hundreds of millions of doses. The Commission Says it will dip into an emergency european pot of more than 2. 3 billion to help finance the vaccine research. Indias surge of 10,000 cases in one day forced them past great britain. They impose lockdown in late march and it is now largely being enforced in highrisk areas. The spike in cases came after india allowed the reopening of shops, shopping malls, factories, and religious places. Olympic organizing Officials Say they lined up about 80 of the facilities needed for next years summer games in tokyo. The games were supposed to be held this summer but were delayed until 2021 because of the coronavirus pandemic. The cost effectively is expected to be between 2 billion and 6 billion. The International Olympic committee has said it will chip in 650 million but most of the tablet be paid by japanese taxpayers. Onbal news 24 hours a day air and on quicktake by bloomberg. Powered by 27 hundred journalists and analysts in over 120 countries, im mark crumpton, this is bloomberg. Is bloomberg markets. Stocks bouncing back to close what has been a highly volatile few months. Systematic traders have been particular cautious. Lets bring in the ceo of panic order panagorda. Managersquantum broadly manage through this period . It conforms to a strategy cycle i often referred to as the five cs. What has been dominant are mega cap stocks. They did not in the past. , it gets copied, then there is a capacity constraint and it begins to move those things up. In march it is the catalyst, covid. There will be a rotation to different types of strategies. The period where there is a major event. It is a dominant strategy. What does that mean for the likes of yourself . The approach tell you to do now . Eric you mentioned quantitative. One big circle called the domain. Another big circle called digital. Computational supremacy. Another one called data. You take all that together and systematic approaches called quant and you get two things out. Improvednique and construction techniques. Be risk parity. S pack to that cap weighted or msci which is dominated by large companies. These schemes are less volatile. They will participate in a 25 rally. They will go a lot of the way but not all of the way. On the downside when the volatility is hurting, they are much safer. The time they perform accumulation of wealth over time. The smallcap paper you have discussed. Talk about that strategy and why you have made out so well . We have expert systems, the decisionmaking process of a truly fundamental investor. Second element of that is smallcap in general. 2000. S like the russell going back 100 years and looking up the 1980s, smallcap stocks as a group outperform. The last 10 years they have underperformed. Something going on dynamically in a macroenvironment. That could change, too. What about the size . At this point you are a 33 billion company. His size and impediment fork strategies . For smallill be portfolios. Once you have a couple billion to trade. Nsive we have multiple billions of dollars, that is lots of capacity without stretching prices or trading problems. It depends on the strategy. Vonnie we are all seeing a lot more embracing of these strategies, talk to us about how mandated money performs differently. When i quit flying jets in the air force in the mid1970s waswent back to academia it alternative. You hire a manager in the institution would raise cash, by box, by stocks. Whats happened over the last 50 years is an increased amount of institutionalization. Some pockets of that are somewhat rigid. We are asked to manage a large cap portfolio, we are constrained to look somewhat like the s p. Which basically prevents you from using all of your valuable tools. That will change over time. Activity efensive Equity Strategies you will see that continue. Vonnie we have to leave it there but fascinating to hear your thoughts on the environment. Ahead, we will speak to jessie singh on the Outdoor Furniture makers trading debut. This is bloomberg. Vonnie this is bloomberg markets. The Outdoor Living company made it trading debut up to. 4 . It surge to over 20 after opening at 27. 50 per share. That maybe youg left a couple of dollars on the table or are you happy with the way things are trading . Be a we are thrilled to Public Company and take the next step. To all of thent hard work of our folks. We are really excited by the longterm opportunity we have as a company. Vonnie one thing youre probably looking to do at some point is turn it profit. You made a loss the last several years despite growing at doubledigit. When do anticipate making a profit . If you look at our historic capital structure, we carried a fair amount of debt. Which is not unusual for a private company. We have raised a fair amount of funds to get the right capital structure. That sets us up for the future. What i would stress is we are a fromy Profitable Company that standpoint. We generate a fair amount of cash flow. Our growth around expanding the they have some secular trends and continue to invest in our recycling. Vonnie im sure they are pleased with the exit. Now you are sort of on your own. How do you change that structure . How much debt will you pay down with this money you have raised and what structure do you want . The shares we issued were all primary shares. The primary use of proceeds is to pay down debt. Being a meaningful impact on our capital structure. Thellows us to invest in market and just as a reminder, 80 of our market is not our types of material and that conversion is accelerating or us. Vonnie you have 1500 employees as of last count. The pandemic affecting everything for you right out from the decision to go public in this environment to being able to continue making the Outdoor Furniture . Just as a macro reminder, you make outdoor decking and living spaces. As you highlight, we manufacture in the u. S. Us, itdemic came upon the priority was the safety of our employees. It allows us to create an appropriate distance between our employees. That combined with a change in the way we do things gives us the confidence in any environment that we can operate safely. We primarily manufacture in the u. S. We manufacture in the u. S. With our supply chain primarily based out of the u. S. Importantly our Customer Base, we deal with contractors on the outside of houses. Our Customer Base as they continue to do construction and operate safely and continue to get safe Outdoor Living spaces. Vonnie thanks for joining and congratulations on the ipo. That is jessie singh. More on the markets next. We will speak with Wells Fargo Securities equity strategist. Later on we will be following all of the top stories of the afternoon. This is bloomberg. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Mark health and human secretary Human Services secretary denies trump is at odds with his advisers as more states open economies. The president has been urging states to open faster. Zar says each governor knows his or her state better. The coronavirus outbreak in brazil might be worse beneficial data suggest. That is according to a new study. They estimate that for every confirmed diagnosis there are six cases that havent been reported. Result has the secondhighest number of cases in the world. In rio de janeiro, where the government tally was 40,000 cases, researchers say up to half a Million People may have been exposed. In hong kong, more than 100,000 protesters shouted slogans and a luxury shopping mall. It marked one year since a clash with parties police