Complete decoupling from china. China and the u. S. Really in the focus. Decouplingthink that , interesting to hear out of the president s mouth. Definitely a lot of chatter that that could be the trajectory. We did see, even though we finished flat on the day, we did see some strength. A lot of those stayathome names, the zoom info. We mentioned this a little bit earlier, spotify having a monster day. They have been buying up all of these sort of podcast companies. They now have this deal with dc comics. Everyone has a deal except us. Taylor i will just ignore that entire thing. He did mention the retail investor. That leads me into the next thing that i want to talk about. It is thursday, which means we get that survey from the retail investor. They got spooked last week. Sincergest weekly fall january, down to about 47. 8. Clearly, some of the bears coming back out after seeing some of the bull action activity that we have been increasingly talking about. U. S. Off 13 . 50 million in shares to raise cash. Kroger is one of these staple stocks you were mentioning. It is up 19 . Plus, they pulled their guidance. Some domestic cases rising, but not hurting delta or macys at least for today. I wanted to get back to a conversation we were having earlier with this chart in the terminal, all about earnings revisions. Earnings revisions are getting less and less. We are seeing them decline for four straight weeks. We take a look at companies starting not to revise earnings much lower. Of course coming off the big drop in march. Romaine seeing some companies reinstate some of the forecasts they had before. Lets welcome back in jonathan, Credit Suisse chief equity strategist. The way that you build things and put them in terms that the rest of us can understand. Try to help me understand the improvement in sentiment here and whether investors should be a little bit more guarded ,gainst the potential tail risk or maybe just a slower path toward economic recovery. Moream increasingly optimistic. I am a pretty optimistic guy. This very concerned, when the riseme about, that in unemployment was really going to be an issue. I think what the big story is here, that consumers are flush with cash, number one. Number two, that we are not going to have national shutdowns. We may have spikes in different locations, but the shutdown is going to be something behind us. Bounce isarterm going to be pretty good. If i have a caution, it is just that there is a bit of a ceiling to the level of economic activity. You can open up new york city to get a haircut but if people cant go on a train or a subway, it is going to curtail act to video. The same for airports, the same for a variety of other activities. I think we will very quickly get back up to 90 , then i think it is going to flatten out. At that point, i think you are going to have investors that scratch their heads a little bit more. Caroline is there a ceiling for how far the stock market can go . Think can stay at higher levels. But i do think the economy is not going to get back to 100 , which means corporate profits will take about three years to get back to breakeven. 2019,eans the earnings in we will not see that level of corporate profits until 2022. It does not mean the markets cant go higher, but it does become somewhat of a constraint. This idea that we will have the market crash on us or a second wave that will do us in, i think those fears are kind of moving into the past. That is why people are more optimistic or at least why i am more optimistic. Caroline jonathan golub, Credit Suisse chief u. S. Equity strategist. Whatd you miss . Is next, where we will be looking at the inclusion and equality at large with kevin warren. This is bloomberg. Bloombergs World Headquarters in new york, i am caroline hyde. Volumes lower on the s p 500 for rate second straight day. We managed to close in the green. The nasdaq on a roll for a fifth straight day. People finding solace in tech shares. Sayshile, dr. Fauci football may not happen this year. We discussed. How wef the two can ensure that there are more black executives in Corporate America. All that and so much more coming up. Foremost, diversity in the workplace in the workplace being spearheaded by social Media Companies. Facebook announcing that its Company Leadership will strive in 30 more people of color positions of leadership, talking about more money to be focused on blackowned businesses. 1 billion. Also, facebook making news, not only are they out in front of Congress Talking about how to protect the next election, but also a Trump Campaign at being pulled down by facebook violating its policy. Sarah, it feels as though, for you, the key news of the day for facebook really was that they removed a series of ads and post shared by Donald Trumps campaign. Sarah this has been a constant debate within facebook about when and how to act on trumps posts. A few weeks ago, he put out some misinformation about mailin ballots. Facebook did not act on that. In this case, using imagery that was used in nazi concentration with an mark prisoners upside down red triangle, that was a bridge too far for facebook, and it was in violation of their hateful imagery rules. Basically, on facebook, you are not allowed to use hate symbols unless you give some context either denouncing them or explaining why you are using them. Romaine all of this came against the backdrop of this virtual hearing in washington with the executives of facebook and some of the other social Media Companies about fighting disinformation. What is that fight . Repeatede company has some of the same things as before. They have a tighter relationship with each other, tighter relationship with the federal government in finding and taking down foreign manipulation of elections. They have a lot of procedures in place to increase transparency about ads. The ad that was taken down by trump, actually a series of ads, those are all included in the political ad archive. , see anyo, look it up ad on facebook that is political and who it was targeted towards. There is a lot more transparency, a lot more preparation to make sure it does not happen again. However, the congressmen and women were very concerned about broader issues with these platforms, specifically the issue of algorithmic priority for information that is going to rile people up or be divisive, things that have sparked hate or tension in society. So a lot of the questions for Tech Companies were about the structural nature of their products. What are they going to do to make sure they are not causing this constant state of controversy that we are living in. From congress today, who did we learn that might have been the company that was caught most on their back foot and maybe was not taking enough initiative here . Sarah adam schiff started out the hearing by calling out google. He said that google has this reputation for being the least transparent about its policies. And maybe avoiding some of the scrutiny that twitter and facebook have faced because they just dont participate in a lot of the same conversations. A representative from google said that was not true. Then facebook i think got a lot for not going as far as twitter and thinking about the effects of its platform. Of course, during the hearing, the trump post was removed, so they got some questions about that as well. Theine quite a day for social media company. Sarah frier, we will talk to you soon. Lets turn to the european union. Instituting measures that has chinese investors worried that the eu may be closing its doors soon. Maria tadeo spoke a little bit earlier about the Chinese Ambassador to the eu. Working for the international not my job and your job. We cannot do it isolated. As my president announced on the ,ideoconference, china will when we come out with a vaccine, we will take it as a public good. Of course, we will share. Ambassador, i want to ask you about hong kong. This bill has been controversial in europe. There are some institutions including the European Parliament that say they worry that democracy is being removed from hong kong by the chinese authorities. What do you say to that . Kong,n we talk about hong we must keep in mind, hong kong is a special Administrative Region of china. Arehong kong Affairs Chinese internal affairs. Noninterference in Chinese Affairs is a fundamental principle in international law. The European Parliament joined a motion for resolution, or interference in chinas internal affairs. It is not acceptable. So you think the European Parliament, for example, commenting on this, saying that the one nation, two system is the way forward, that is not something that china can fundamentally agree to . This is something just for china to deal with . Upholding country, National Security is the duty of the central government. U. K. Ean countries like the , like france, like germany and others, all have National Security legislation. Yet, in hong kong, there is no such legislation. The legislation aims to close the loophole. We should not look at this issue with double standards. Systems is, two chinas basic state policy. Resolved to fully implement one country, two systems. Safeguarding National Security is a Building Block for sound implementation of the one country, two systems. Kongs ability and prosperity. The legislation will not change system,gs capitalist its high degree of autonomy under the basic law, or the lifestyle of hong kongs residence. Lets talk about trade. Yesterday, the European Commission put out a white paper that does not mention china, but many people interpret it as talking about china. They worry about too much intervention perhaps in european companies. How do you read that . Do you think the investment environment for Chinese Companies has become more difficult now in europe . The white paper. We are studying the paper. That the relevant eu with thewill comply rules. Protectionist creatingd refrain from new trade barriers under the pretext of subsidies. Eu haveeasures taken by got some chinese investors concern, to speak frankly. That the eu is closing its doors. Caroline the Chinese Ambassador speaking earlier with our very own maria tadeo in brussels. Coming up, we will discuss the impact of the pandemic on the Real Estate Market in new york city, right here. The ceo of silverstein and properties. What do we expect from phase two . This is bloomberg. Romaine the new york city metro economy,1. 8 trillion rivaling the size of a lot of countries like brazil, canada, south korea. It has been largely shut down since midmarch. Faye is two of the reopening happening on monday. For more on the demand for commercial and residential real estate, marty berger joins us. Residential, hotel, and retail properties, including the new World Trade Center downtown in manhattan. You have got no answer people here that in the next few weeks and few months are going to start trickling back to work, back into those office buildings. However you prepared your business, your building, and your tenants for this return so that people can get back to their normal routine and feel safe doing it . Thank you so much for having me. We have billiondollar assets that never shut down. We always operate these buildings and our building staff has been there every day through this pandemic, even through the shutdown. But we have been taking every step and every protocol to get ready for everyone to come back into these buildings. Some of our buildings have up to 7000 people. During the pandemic, they have been down to maybe 70 or 80 people. Now, we have to prepare for all these people to come back into the building. We have the high touch areas such as the doors of the elevators, the handrails, all of that. Those get cleaned on an hourly basis. We have our cleaning companies go through it constantly. We have glass in front of the concierge folks so that the doormen and concierge folks are protected, and the guests that come in are reregistered, so there is a seamless system of getting people in and out of the buildings. The elevators have blue circles for where people should stand. Our newer buildings have destination dispatch, which means you walk in, use your card key, it tells you which elevator itgo to, use the turnstile, takes you right to your floor so you dont have to touch anything. The air Filtration Systems are cleaned more often than our newer buildings. That is already taken into account. But a lot of it is just awareness and getting our tenants and their employees comfortable. There are signs up that say you cannot enter through this area unless you are wearing a mask. All of our building staff gets temperature tested and they are wearing ppe throughout the day so that all of our tenants know that they will be protected. Thinkne what do you capacity looks like . Given the focus on flexible working, do you think youll ever be at 7000 again . Definitely. I think it will be gradual. I think people will have to be acclimated back into the Work Environment and that will take some time. Phaseday, we is entered two. We heard from the governor earlier in the week and earlier today that phase two will definitely happen, and that is terrific. A onestein will go to third, one third, and one third schedule. If you are b, you are the next two days. Andou are c, you are five six. At any time, we will have one third of our workforce. We are telling all of our employees, between now and labor day, you dont have to come back if you dont feel comfortable. We believe that Public Transportation is safe. If you dont think it is safe, dont come back before labor day. Taylor with some of the commercial tenants that have leases coming up, are they renewing the same Square Footage, or do you see them renewing, just less Square Footage . People still need to be in office space. This work from home thing, while it has been acceptable for the moment, it is not a longterm solution. You cant get the same results working from home. Decimate we have made do with it. Call,oom call or a web collaboration is not the same thing you cant do a pitch for an advertising agency. The example i gave yesterday, the lawyer coming out of law school, if he or she wants to doesom the lawyer she want to learn from the lawyer working from home or in the office . Way,ine i think either this is a new world, dont you think . I am not sure. At morganalysts stanley, blackstone of the world. They are not sitting next to the associates. Caroline we have to leave it there. Coming up, unrest researchers in atlanta after a black man is killed at the hands of police. We get the latest on the situation. This is bloomberg. You say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. Sawithout evenon yoleaving 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. Romaine welcome back. You are watching whatd you miss . Lets get over right now to Mark Crumpton with the bloomberg first word news. Mark a divided u. S. Supreme court today ruled that president the obama erand program that shields 600,000 young undocumented immigrants from deportation. Justices rejected Trump Administration arguments that the deferred action for childhood arrivals program, daca, is illegal. Daca protects people who were brought into the country illegally as children. On twitter, President Trump called the courts ruling horrible and political elite charged. Democratic president ial nominee joe biden is getting ready to unveil his first set of campaign ads. Mr. Biden is spending 15 billion at Million Dollars on advertising. The fiveweek ad campaign will air in six states that President Trump won in 2016. Pennsylvania, wisconsin, michigan, north carolina, arizona, as well as on fox news. New York Governor Andrew Cuomo said he is considering requiring people who visit from florida to quarantine for 14 days. Covid19 cases have been climbing in florida while new york is on the decline. He also said he is signing an executive order that would allow the state to immediately suspend the Liquor License or shut down any bar or restaurant that violates reopening rules. Coronavirus cases are on the rise in california. The state reported more than 4000 new infections today, its biggest ever daily increase. 160,000fections now top in california. More than half of the new infections are in los angeles. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Caroline really, i think today has been a day where the markets have been a bit whipsawed by these headlines. On the one side, coronavirus, the counts building in california and texas. On the others, the Economic Data looking pretty woeful in terms of jobs returning but not bad when you are looking at manufacturing. About we talked taylor brought this up a couple of days ago about what we have seen in the citigroup. Again, at near record highs in terms of that. As far as the data, as you mentioned, it is not getting worse. Taylor it is not getting worse, but it is hard to figure out what to look at. Some of it seems really good, some of it seems really bad. It seems the markets are trying to sift through the virus, the Economic Data, the bankruptcies. Jonathan was saying that bankruptcies are not as high as he thought they would be. That is certainly an Interesting Data point. Today is thursday, the rate at which those claims are coming down has been slowing. I think people getting perhaps a little bit nervous that jobs are not coming back as quickly as they went away. Of course, we were not always expecting that. But of course did not want them to be slowing this quickly. What is i think interesting, the volumes for a second straight day. Romaine keep in mind, tomorrow we get sort of the quarter options expiration. You have a big rebalancing coming of the index. We could see volumes pickup in terms of full three positioning, picking up new positions, rolling over to others. Whether that contributes to the markets going up or down, that is yet to be seen. Taylor i am folding over my pages because i have so many market notes. We have to talk about bridgewater, coming out with a warning that it could be a lost decade for stocks as Profit Margins could be at risk in the longterm and the level of corporate debt has been rising as all these corporations have been issuing debt to help get them through the next few months or so. Interesting that you could be talking about a lost decade here for stocks. Profit though could be a little bit concerning, especially as we were talking about evaluations at this moment. Caroline this is a big valuation debate being brought up by bridgewater. Not only covid, but also the u. S. And china. Maybe it is time that people are bringing manufacturing back to the u. S. At the expense of Profit Margins. I want to shift gears. We want to talk about inclusion and diversity. Over the past decade, organizations of all stripes spend billions of dollars trying to get more members of underrepresented of groups to the top highest paying jobs. But, there are currently just four like ceos in the fortune 500 companies. Fewer black executives at some of the big banks. How can companies or Industries Close the Racial Disparities at the top and potentially further down the hierarchy . Lets get the insight from the chief marketing officer at ups. Thank you for joining us. Talk to talk to us about your career path. What do you think helped steer you to be a csuite level executive at such a Significant Company . Kevin i was fortunate in that i started my career as an intern, and i did have a degree in finance at georgetown, so i did have some instruction to prepare me academically. But there are some nuances in navigating Corporate America that even a Business School does not prepare you for. My mom was a teacher, my dad worked in the local government. They were not business people. The nuance of how to play politics, how to dress, where to sit when you go in a room, how to take feedback from your boss, what clubs to join, a lot of those things my white colleagues got through their parents or may be at the country club or dinner conversations, that i had to learn along the way. I was fortunate enough that i had some mentors both africanamerican and white, to give me tools of the trade to help me navigate. But it is still too hard. It absolutely is too hard. The numbers you referenced as far as four africanamerican ceos out of 500. He Start Talking about board of directors, almost 200 of the fortune 500 companies dont have a black director on the board. Clevel isthe underrepresented as well. We have to do some things to make it easier. Because either we feel that talent is favored toward people based on gender or race. Maybe we have to come to the opportunities. Romaine if you go back into the 1980s and 1990s. There seemed to be this tapering off. If you go under the surface, i can tell you in my own professional circles, there are relatively a lot of black highlevel executives but they dont have as quick a trajectory as what was expected coming out of that period in the 1980s and 1990s. I wonder what changed when we saw this stagnation . Kevin i dont think the talent level changed. I think it starts at the board of directors and really what sort of quote unquote risks the boards are going to take as far anleaning in and appointing africanamerican ceo or even a csuite member. People feel sometimes there is this thing called unconscious bias where they think they are being fair but they are not aware that they feel more comfortable with people who look like them. I think the commitment to diversity that we had post 1960s and 1970s, that kind of waned as well. That we havenate gone backwards. Taylor we have talked a lot about the gender pay gap. I curious how you think we can now change the minority pay cap . Pay gap . Isin it really matters who sitting in the room and around the table as decisions are being made. I will give you an example of how this can play out the right way. I am proud of the company i top 11to ups, and of the executives, six of the 11 are either women, africanamericans, and we have an hispanic american as well. When we decided what we were going to do in response to the civil unrest, you had a couple of africanamericans along with a woman, the ceo, sitting at the table. One of the things we said was we were going to do an audit or survey to make sure that we had fairness and pay throughout the company. More diversity you have, i think it starts in the board room, then certainly in the csuite. Then it is about what are you going to do to make sure that your feeder base or your pipeline is improving. There is an Organization Called the executive leadership council, which im a member of, and the whole mandate is blacking the pipeline of executives from midlevel, to see level, to board members. Caroline you spent a lot of time at xerox, which of course has a black female leader, one of the only black female leaders of a fortune 500 business. She has been talking about how now it is the time for corporates to lead the change because perhaps we are not getting the leadership that many Corporate Leaders would want to see. Have you seen the role of ups when perhaps federal, local level cant lead . Ursula, not only was she the first africanamerican woman ceo of a fortune 500 company, but xerox at that time was the First Company that had a woman to woman ceo succession. Clearly, that was a value of that company. It is also a value at least when i was there, i cant speak to now. But it was also a value of ups, which is one of the reasons i joined them two years ago. There is a responsibility for corporations to step up when he Start Talking about the trust index, corporations score higher than ngos, than even the media. In almost every organization. So, our voice has to step up and lead. Ups, we are very committed to doing that. One of the ways is to really leverage our assets. Political assets, making sure that we support the antilynching act nationally, as well as locally come our home state of georgia, making sure that we are pushing this hate crimes bill. Of volunteerunt hours. About 20, 25, to invest in areas that are most effective. Game. E raised our support for organizations like the naacp, historically black colleges and universities. Thethen, also investing in national africanamerican museum of history and culture in washington, d. C. , to be able to end of tell the story of racism and raise awareness. So, corporations have vast assets. We need to use them, use them boldly, and now it is time for all of us to act. Romaine kevin, we appreciate you taking your time to share your thoughts on that. Kevin warren, a long career in Corporate America, now chief marketing officer at ups. This is bloomberg. Is a National Service program that allows Young Americans to spend a year in service to our country through a local nonprofit, earn some money for college, a living stipend, and get health care for that year. Currently, there is 75,000 people serving in every american state and territory. We would double the size of that. We would increase the living stipend, bump it up just a little, and increase how much they earn for college. I think at this moment when we have had 44 million americans apply for unemployment and that has hit most heavily those that are younger and in particular black and brown communities, this pathway toward opportunity would put 150,000 people into service to help with response to the pandemic, the recession, growing hunger. I am thrilled that we have got republican senator roger wicker as my lead cosponsor but it also has support from senators like marco rubio, lindsey graham, john cornyn, and others. Is another pipeline for young people during this downturn to find an opportunity to help the country. It is a chance to serve, to get to know each other from different backgrounds, to contribute to the country, and to earn money for a college opportunity. There is a lot of talk about whether or not more economic stimulusd an economic will come whether it is and of july, early august, or in the fall. What can you tell us about another timeline . I am really surprised that we are not right now negotiating the final details of the next round. When the fed chairman yesterday was testifying and the secretary of the treasury last week was testifying that we absolutely need another round. Today, i am introducing a bill with several of my colleagues that would take what is left of the money in the Paycheck Protection Program and would prioritize it, take 25 billion specifically for the very smallest companies, and the rest of it for those employing below 100. It would expedite the review and approval process for a second loan for those that have completed a first successfully. I think there is frustration among those leaders of incredibly Small Businesses that they dont know where to go to get information, dont know where this money is going to come from. How do Small Businesses get access to that in this fog of pandemic economic war . I have done lots of calls in delaware with Small Businesses, chambers of commerce in smaller towns, larger cities, and make sure that information is on our website. We have engaged a lot of lenders. Really theit was largest lenders. Community development, financial institutions, all of them have been given better training, better direction, better resources. Whereuld be in a place the very smallest businesses are able to access loans. The Small Business administration has also partnered with some finTech Companies to make ppp loans available on your cell phone. Beyond that, it comes down to data for where the money is going, tracking the money so that if one sector or one portion is not getting enough, that you are able to see that. Satisfied with the administration being transparent in allocating these resources . I am not. Ist week, we had a meeting pressed about the lack of full transparency about what companies have what size are getting what grants. If 2. 3 trillion dollars has gone out the door just in the cares act, we owe it to the american taxpayers to deliver on transparency. We put robust provisions into bills provide for transparency and mainly we have seen either obstruction or foot dragging. In some areas, there has been transparency but in this program, i am concerned there has not been enough. Caroline democratic senator chris coons from delaware. This is bloomberg. Berg. Faucie dr. Anthony pouring cold water on some football fans hope of seeing some action this year. Genteel, a in rick former executive producer of cbs sports. Thanks for joining us. They are actually showing pictures for some reason of my great chicago bears, who have not been great for a long time. But for those of us who have been deprived of sports for the past few months, what do you think the chances are that these sports leagues will be able to find a model where they can come back and not only get the players on the field but potentially get the fans in the stadium safely . Very differentwo questions. As we see in the newspapers, doom then gloom, then doom again. The nba, do they play in their bubble. Major league baseball, 60 games, 70 games, whatever . Leagues willthat come back. Whether fans are in the stands or not, that would be hard to imagine at this point. Caroline looking across the pond what is happening in the u. K. , we have seen a resuscitation of what i call football, soccer for you guys. They trying to make are piping in music to recreate the feeling of fans being there. I think everybody is looking at the way to broadcast these empty stadium games. Theoretically, it would not impact the play on the field as much, although that is doubtful given that homecourt advantage, homefield advantage has always been a big thing in sports. I think tv broadcasters are looking very hard at ways to compensate for the lack of fan engagement. I have heard anything from music kingg piped in to mi players, using effects mics more. Football, hearing the plays get called. So, i think broadcasters are looking for different ways. The one way that i frankly hope they never go to his piping in a noiserack, fake crowd like you are watching a sitcom, a bad sitcom. But there is talk of that as well. Audio guy on whether or not the fans would be cheering loud right now. Romaine caroline can talk about english premier and track bottoms all day. For the real sports here in the u. S. , getting back and getting under this faster than others . Rick we saw golf start last week. There is a perfect example. I like toen consider european football real sports, but we have seen them come back. Anf came back and cbs aired event in fort worth. As i said before, the very first thing that came on the air when they came on the air i guess it was last thursday. Caroline rick gentile, great to have you with us. This is bloomberg. Welcome to bloomberg technology. Im emily chang in san francisco. Stocks higher despite concerns about fresh outbreaks of covid19 across the country. Byntime, a landmark ruling the Supreme Court blocking the Trump Administrations attempt program for a young immigrants in the united states. We will get to that along with facebook taking down