Salesforce also up higher. A lot of those secondtier tech names also did well. 10, 15 or more. They are looking for what they think will be the next leg up in this market. Taylor we do a lot of analysis here that abd traditional models dont work anymore. But over the weekend, i was reading about the fed model, ifating around an idea that you use the fed model, equities could march higher than where they are right now. That is a note in the midst of some of the optimism, that catches my attention. Romaine jack, lets pick up where taylor left off, specifically around this idea of how you evaluate market and whether some of the core metrics for valuation really matter in the timeframe we are in. Into this next earnings season really paying attention to some of those more traditional metrics . Jack i think some of those more traditional metrics make sense still as long as you compare them to other metrics. I dont know if the core price to earnings ratio on the s p 500 tells me a whole lot at a moment. You also have an earnings number that has completely fallen apart as a result of this unique environment. Can we actually think about valuations as a standalone right now as a particularly useful guide . Towe compare largecap smallcap valuations, that starts to tell a little bit more of a story. Isbe the fed is there and it implicitly supporting assets. Versus the smallcap story, i dont know in and of themselves. But you can see that smallcap stocks are more expensive than largecap stocks. If you are looking for those relatively cheaper names, relatively higherquality names, i think that does suggest u. S. Sayties probably more than, largecap stocks. Caroline devaluation story will be helpful. So is an earnings story. Taylor, i know this is something youre looking at in terms of where earnings is going. Taylor originally, we were concerned that earnings estimates kept falling. Out january,ing february, march. But they have now started to turn positive. This is something, making sure that earnings revisions were not going lower. We are stabilizing and even starting to take up a little bit. Stocks today all about the reopening. Most0 passengers, the since march 20. A double upgrade at wells fargo on the valuation of the athletic brand. Signing aactic private Astronaut Readiness Program for flight to the International Space station. Finally, this is a conversation we have been talking about all morning. It looks like positions on net short are the biggest going back to 2011. Large speculators are taking some of their biggest short positions going back four years. Very interesting some of the divergence, given this volatility. Really, this is something i keep on reading about. Cameron crise is putting it great in the markets live blog. The magnitude of positioning at the moment is really large. That is perhaps why we are able to defy gravity. We can keep marching higher because people are hedging and taking out these short positions. Think you say, you go along with what the fed is doing, you dont fight it, but they are still conscious of the tail risks. Is j. P. Morgan Asset Management global asset strategist jack manley. When you sort of look ahead to some of the other Economic Data we are anticipating, what are you looking for specifically that would give you a little more confidence in economic recovery . Jack durable goods and Consumer Spending numbers. I think both of those will be very important helping to shape what secondquarter growth looks like. Everybody knows that it will be bad, probably one of the worst quarters we have seen. But the data will be coming in. At the end of the day, markets, really more than anything, dont like uncertainty. News iss, bad news, any important. Up,e can clear things crystallize the viewers to what this recession will look like, it helps to make the pain of when that secondquarter growth number comes out a little more palatable. So i think anything we get out there, good news, bad news, just gives us a little bit more of a firm footing, something we can jump off of. I think that in itself is pretty valuable for investors. Caroline just clarity. Jack manley, we thank you for your expertise today. That does it for the closing bell. Whatd you miss . We will be speaking with the first African American woman to hold the ceo position at Unity National bank. This is bloomberg. Caroline from bloombergs World Headquarters in new york, i am Caroline Hyde. Romaine this is whatd you miss . Caroline the nasdaq closes up a percentage point, tech leads the charge. That is even as cases climb. Coronavirus infections rise in numerous states with the government of texas calling it unacceptable. The first africanamerican woman to take the helm. ,e speak with Laurie Vignaud the ceo of unity bank. We will get right to it. What the market managed to shrug off, covid19 numbers. Taylor these are the numbers that the markets have been eyeing so closely. Better than a lot the pecan march when the five day was rising as much as 70 . Nonetheless, eight percent catches our eye. Markets of course decoupling from this as the world index climbing all the way back to the highs not seen since early march. Joining us is the former assistant secretary for health in the obama administration, dr. Howard coble. Great to have you here. Im curious of your thoughts on this. We knew that the numbers would be rising on a reopening. Does it concern you the rate at which numbers are increasing and the fact that there is a lack of federal plan, and states going it alone . We are concerned when we see these numbers because in so many parts of our country, we are seeing rising cases, rising hospitalizations. Society,ying to reopen get businesses going again. We have to track these trends very carefully, especially as fall comes. Youre right, we have, unfortunately, 50 states going in 50 directions. Strategy,national coordinated response, a united plan. The plan is right now the plan that we have in place. Went you were working in the government come you were around for h1n1 and i believe you worked on some of the groups that were there to address that. Are there any sort of parallels are lessons we can learn from our approach to h1n1 versus what we are going through today . Dr. Koh that is a great question. These problems are never easy. We need a one government approach. And federal, leaders working together every day. We need to start with data, science, uniform messaging. And then we need coordination on guidance from what the general public can do, how important it is for every person to contribute to prevention. H1n1 in 2009 and 2010, that was not easy, these crazies never are, but we need more of that coordination now than ever. Caroline it seems like you are baking in a kind of spanish flu learning that the second wave will hit hard. We were hearing about the lack of ppe gear, testing as being necessary, and also Contact Tracing. Where are we in the u. S. On any of those things . As it stands, i dont feel like i am getting contact traced or tested . Dr. Koh that is all a patchwork, unfortunately. The testing numbers are rising, and that is a good thing because we need to define who is infected and get them treated. Again, in 50 states, it is going in 50 directions. Some states have small armies of workers. Other states have barely started at all. We need to coordinate this all as a vaccine might come on the verizon on the horizon. Everyone is talking about the threat of a second wave. But a second wave can only come if the first wave has come and gone. The first wave has come and it has stayed for five months and counting. We need better coordination for the future, summer, fall, and beyond. What does proper Contact Tracing look like to you . Dr. Koh it is interacting with the person who is newly infected , asking them who they have been exposed to in the prior two weeks, tracing those folks and having them quarantined as necessary until they are safe, the exposure period has passed. This requires really working closely with Public Health officials. This is where Public Health is so important. Maximizing prevention for those infection, ande also isolating those who are definitely identified. Romaine i want to ask you about i guess a more practical issue here. In the minds of a lot of people, we are not going to have another shut down economically because the government does not want that to happen. Based on the behavior of a lot of people on the streets today, they will continue to congregate , go to restaurants and other places. We have Contact Tracing programs in many cities that are underfunded, understaffed. Based on that, do you think that we as a country can at least manage our way through another significant outbreak of covid19 without some catastrophic death toll . Dr. Koh the only way to get through this is to do it together and understand that in this crisis, we do not have a cure, we do not have a vaccine. All we have is prevention which can be very powerful and lifesaving. Distancing, Wearing Masks hoping asygiene, i am we move through the summer and fall and beyond, people can take that very seriously and try to put this behind us. Caroline i was very lucky to be in new zealand when the outbreak first happened. I watched this country open up and i watched the Contact Tracing going on. Whenever you tried to enter a shop, you had to put your email address, a number, they noted which table you were sitting at. Are there any states in the u. S. That are trying to adopt best practice that the government can look to for at least an athome . Omestic sort of expertise dr. Koh we have learned a lot from south korea, new zealand, germany, iceland. In the northeast, particularly in new york, new jersey, downchusetts, rates going they used to be very high. It demonstrates to the entire country that Public Health works, social distancing works. Wearing masks can save lives as well. There is more and more data to show that. A broad and in some parts of the country, and we are hoping that every part of the country can adopt this going forward. Romaine dr. Howard coble, the former assistant secretary for health and the obama administration. Right now, a professor at the Harvard School for Public Health. Today, steve jobs walked out on the stage and announced a big partnership. They arem cook said going to be manufacturing their own chips. This is bloomberg. Rg. I want to address the topic of racism, inequality, and injustice, and to recognize the pain being felt throughout our nation. This year, we have completely redesigned the siri experience with a new compact design. Apple watch is the first watch to deliver automatic detection and you start washing your hands. Building up on our years of experience, designing the worlds most Energy Efficient chips. A higher level of performance while consuming less power. The much better performance is reason enough to that is just part of the story. Our scalable architecture that,es many technologies when integrated with our software, will bring even more innovation. With our advanced power management, we will maximize performance better than ever before. Best in class security. Those were just some of the highlights from apples annual worldwide conference. Sell macns to computers with processors created inhouse. Andel is managing director Senior Research analyst, joining us right now. How significant is this switchover to these new chips . Important it is an announcement because it enables apple to control the roadmap. The broaderto strategy around integrating hardware, software, services. At is key to creating value for apples customers and creating value over the medium term. Caroline the ecosystem as it exists, not so much focused on the latest phone but focused on how they can monetize the services part. Therefore where do you see the most opportunity now . Wearablek the opportunity is tremendous and it is very early innings. Thinking back to when the watch was launched, there was a lot of skepticism when it arrived. What we have seen in fitness and health care is significant. App, emergency calling, there is now sleep monitoring, handwashing. These applications, the ability to monitor this is important. It helps save lives in some cases, it enables people to live healthier lives. Taylor it is interesting, in the middle of all of this you go analystspacex, and an says, it is hard to bet against apple in the middle of a 5g upgrade cycle. While we are excited about the wearables and services revenue, at what point are you going back to basics and taking a look at an iphone and saying, that alone could become could propel this company further . Importantone is an piece of the story. The iphone franchise is durable. The installed base is growing. Iphone,arly with the 5g it will be this integration of software and services that differentiate. We all appreciate that there are 5g devices in the market now. But what the market is waiting for, and i think we will see ais in the fall and in 2021, 5g iphone. That will likely help apple attract new users and get the installed base to upgrade. Thes this broadening of revenue drivers. Iphone, services, wearables. There are a lot of pieces that are interesting and exciting. Romaine we cant let you go without asking about this rift we have seen between apple and some of its developers. There is this eu probe over how it administers in app purchases. Do you think this will be a big enough deal that it will fracture in any significant way the relationship apple has with these developers . We all appreciate that the majority of the apps are free. The platform allowing developers to gain access to its community of users. So, apple has done a lot of good that thereappreciate is concern around apple perhaps using its position in a way that some dont feel is appropriate. But i think there are a couple of things i am looking for. One, to increasingly provide more transparency around how it makes decisions. The second thing, apple explaining to users and developers how some of this is aimed at providing better security. Apple is trying where it can to help users safeguard its privacy and security. Overall, the benefits of their application ecosystem in the app store i think is positive. Yourine fantastic to get insight today. Some breaking news. Softbank is of course monetizing some of its stake, they are going to be selling 134 million shares or thereabouts. Some pressure potentially on the shares after hours, down by 1. 4 . They look to raise funds as an dispose of certain assets. Coming up, food inequality in america. Sound peak to the the founder and ceo of every table on his mission to bring healthy foods. He is looking to speak to improve the health of those in l. A. 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. Now, the food inequality crisis is worsening in the u. S. Roughly 17 million more people are set to be food insecure in 2020, bringing the total to 64 million people, a third of those being children. We want to welcome sam poke, every every table founder. You once upon a time were , tradingtrading floor distressed debt. For myself and our viewers who are ignorant or naive to the problem out there, can you paint the picture for us on the streets of l. A. . Sam there are many neighborhoods in los angeles and americajor city in where people dont have access to fresh, healthy foods. There are very few grocery stores. The only real restaurants are. Ast food because of this, a kid born in a neighborhood like South Los Angeles will live, on average, 11 years less than a kid born in a more affluent neighborhood. Theres a lot of reasons for ist one of the main ones access to healthy food. Romaine with regards to people signing up for this program, is the idea that they would go to an access point to pick up the food or is it going to be delivered directly to them . And are there any challenges in getting the food to the customer . Businessytables main is that we open healthy, fast food restaurants in more affluent neighborhoods and where we sell healthy food for less than the price of fast food. The way we have done that, we have restructured the standard restaurant model so that instead of every restaurant having its own kitchen, we have a single kitchen in los angeles that supports all of our restaurants. Romaine that means there would be an access point in those communities for people to get their food . Sam that is true for our standard restaurant but now everytable is delivering over 100,000 meals per week directly to peoples homes. The reason for that is because there are so many vulnerable, low income Senior Citizens who are basically trapped in their for them it is unsafe to be going out in the world. So the city and county of los angeles has come to every table and contracted with us. Taylor curious to dive deeper into the Business Model. Fema for example pays you for a of the deliveries. As more and more of those budgets become constrained, have they hinted at all to you that you might not receive funding . Morehappens as more and city and local budgets become constrained . Sam it is a great question and a huge problem. Somehave unlocked emergency relief budgets at the beginning of this. But, those budgets are sort of funny monthtomonth basis and it is not clear whether they are going to continue. That the is clear is need is not only can it continue, but it will keep growing and growing. That is because, not only is this coronavirus pandemic continuing, but the economic shock that has hit los angeles as well as every major city, is continuing to grow. Caroline you are mission driven, clearly, but also for profit. Im curious to hear if you think this will be a Business Model adopted by others out there. You look to the Restaurant Business that you build before, serving the same food but one at a slightly higher price point. Is that something that others can adopt . I think it is no secret that there is gold at the bottom of the pyramid, by which i mean the Biggest Food Companies in the world are those who have figured out how to sell food profitably to the masses. The restaurantof companies over the last 10 years have focused in the fast casual sector on the 1215 dollar high luxuryury highend salad consumer. The real opportunity in our opinion is replacing the six dollars fast food meal with a six dollar healthy, freshly prepared, made from scratch meal. That is why everytable has not only got investment from impact investors and foundations, but also pure venture capitalists who see that this can be a massive investment opportunity. Romaine looking for some new and innovative ways to approach Food Insecurity issues. Lets get over to the bloomberg first word news where taylor is going to do her best Mark Crumpton impression. Taylor u. S. Health agencies preparing for a flu season that will be complicated by the coronavirus pandemic. Dr. Anthony found she will testify before house lawmakers tomorrow. He is expected to say that coronavirus activity is likely to continue for some time and could place what he calls a tremendous burden on already stressed health care systems. Fauci is also saying that he has been mistakenly painted as an obstacle to the nfls upcoming season. He said he only gave advice after they asked about ways to keep players safe during the pandemic. He said last week that the leaks season may not be played unless players are essentially kept in a bubble, isolated from others and essentially tested every day. Tolddent trump reportedly faucher that he had nothing to do with football. Arizona has more than 100,000 confirmed kate florida has more than 100,000 confirmed cases. 23,000 cases in the past seven days, the highest level ever. 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. I am taylor riggs. This is bloomberg. You will also see a big v in terms of the economy going up for the next few months because it has been closed and as people are allowed to go back, the economy will really respond a lot. Much re is only so the economy is highly complex. All things goot up equally. Whilel take quite a before we sync up and get back to 2019 levels. When i think about your experience, i know that lack stone is a place where you are always looking at opportunities, and new opportunities in many ways. I think back to the turnofthecentury, a lot of the investing you made in real estate. The last financial crisis, how heavily you invested into credit, distress through gs so and other means. What is something you are doing now that might help us understand the opportunities that exist in this latest crisis . This one is different. They are always different. The easy things to have been doing was, when you hit that bottom, to be making significant investments. We recorded at the end of the First Quarter that we had billion in1 securities, and that of course had a very happy outcome. We did more in addition. That is sort of the first stage. Businessesh of our are now seeing interesting opportunities. Changing things and people are staying home or, the areas where you would want to invest, whether it is technology or health care, are being modified. Certain boulder economies that are bound to be disrupted. Those types of companies are places where, unless you have a really remarkable management, you would be wanting to stay away from. Different parts of the economy opening faster. Some things were closed completely. In las vegas,otel completely closed the first weekend it opened. It was 45 filled. That is an astonishing thing because las vegas is fairly open. There will be some surprises. Not all hotels. But as you look at the gradation , places where you can drive, much faster. Places where you have to fly much lower, and having to travel over oceans, that will be the slowest recovery type. Each of our businesses is starting to really put out money. Our business lines. And there is much better tone. To do a lot of private investing, there has to be some confidence on both sides. Sellers have to believe they are getting fair value and the people who are buying have to think they are getting fair value. Typically what happens, if you ,re doing private investing sellers dont like to sell at bottoms. You can buy liquid securities. Securities, cmt bs and other things that are stacks, you can find the security where you think it has the most upside, even if it has gone up halfway from where it started. Some of these will continue to go up. Outs an issue of figuring which of the underlying businesses are going to return to health. Caroline bloombergs jason kenny and steve schwarzman, Blackstone Group chairman. More than a month ago, Unity National bank, the only blackowned bank in texas, met with members of the trumpet ministration to make more money available the Trump Administration to make more money available to minority owned institutions. Thank you for joining us today. Given that it has been about a month since your team has met with mike pence, i am wondering, as we fastforward to today, where are we now . Have you seen more assistance made available to minority communities and these programs . Laurie thank you for having me on the show today. We appreciated the opportunity to share concerns and suggestions with the Vice President regarding primarily of ppp program and the means minority owned depository institutions. We included suggestions like simplifying the program for all customers taking advantage of the program. We asked them to consider creating a covid19 reserve fund. Of ours an estimated 40 black businesses forecast to default on their loans. Because of the pandemic. To continueg them to together capital. Also asking them as you know, there are only 19 black banks in america right now. The minority deposit it. Itution was part of we still remain very hopeful that they will take our suggestions into serious consideration. Romaine it will be interesting to see what the response is from the trumpet ministration. I am curious, what is the selling point that you give not just the administration but may other folks interested in investing in this space. Is there a need . Can you explain the need, bigger banks such as chase, citigroup, etc. Isrie my bank in particular located in a low and moderate income community. I think one of the reasons why we were acknowledged is because ofhas been noted that a lot minority deposit institutions were actually touching and servicing a lot of the Small Businesses that had been requesting the sba program. We can see the impact, providing capital to Small Businesses, on transforming our communities. Here, a vital ,ource providing access individuals and families that would no longer have access to it. The role that we play is critical. A lot of larger organizations recognize that. I want to acknowledge citigroup and citibank being one of our partners. By leveraging their resources, they allow us to do more outreach. The role of a Minority Bank and a black bank in particular will always be very important. I hope that as corporations at industry are looking at the role we play, they will continue to support us. Caroline citigroup and other banks starting to announce grants for institutions, is that call being heard now, particularly in this time of listening . Me of do you think things are starting to change in a systemic way . Laurie i think it is. I think you have to start with acknowledging that there is a systemic inequity. That is the first step. I think that is the only way we can actually make a more equitable america and the first step in making sure we are putting capital into the hands of minority owned businesses. That is a tangible way for us to be able to feel that progress is being made. I cant think of any other way i am sure there are many other ways we can move the needle. But, to your point, having the conversation come all of us coming together and talking about how we can have a tangible impact. Sonali you had mentioned that there were almost 50 blackowned banks, and now less than 20 in america today. Can you explain some of these challenges . And what can be done to help the expansion of your bank and banks like yours . Laurie let me share another program that has been very successful for unity bank. It was a conversation we had been having with the Treasury Department and secretary mnuchin around the mentor protege program. We are a mentor protege with citibank. We had been working with them prior to the Racial Equity and minority inclusion act. What makes this so important, and why this program is so valuable for minority depository institutions like unity, they allow us to leverage their resources in order for us to have a broader impact in community. For instance, they just allocated up to 50 million to mdi so that we could actually do more lending in the community. By making those funds available, it allows me to free up my Balance Sheet so i can lend more. There are capital restraints on banks on how much we can lend. When we are able to leverage a relationship with city, it creates a vehicle and avenue to be able to do more business. Moreeed is great, and the larger corporations participating in a program allow ando be able to last longer be able to create a level of support and capital to the communities that we need. Without that kind of support, it makes it very challenging. We have to leverage and we have to have partnerships. Caroline hopefully that can help the other less than 20 blackowned banks out there. Think you for joining us, ceo of Unity National bank. Now, a programming note. Be sure to check out our former president ial candidate andrew p. M. Come on at 5 30 eastern time. This is bloomberg. Romaine welcome back. Alongside Caroline Hyde and taylor riggs. Time to check in with Joe Weisenthal in austin, texas. We have been talking a lot about this economic recovery. One sort of interesting thing that has been taking place has been sort of the resiliency in the Housing Market. There has also been some data as of late that shows the Housing Market maybe is not as strong as some of us may think. Joe lets start with the big picture first. You would never expect a massive market crash, unemployment surging into the teens. You would just assume that the Housing Market would follow for cliff. It has not happened yet. Some of the data is outright strong. Newhome sales, mortgage applications, a lot of that looks like a v. Another thing that has not happened yet, the rental market has not collapsed. There is a great quote from the president of the National Family saying, i wasl, expecting the worst, but april survived and may was even better than april. Taylor while we do have got a wave of well we have not gotten a wave of defaults, home sales collapsing again, and more importantly, home prices are also falling. Indication that they are cutting prices to get these out of the door . Joe i think it is a real mix. Part of it has to do with the composition of the market. Obviously, the new home sales market is doing pretty well but a lot of those new home sales may be outside of cities, outside of the most desirable land. Part of it, you have all of these people who wanted to move from their expensive City Property into the suburbs. I think composition is playing a big factor. I think one of the things that is playing a big factor is dependent on what that next round of stimulus looks like. Caroline Joe Weisenthal, we are going to have to cut you off. That is all for whatd you miss . This is bloomberg. Bloombergome to technology. Apple holds its firstever virtual worldwide developer conference, updates across the iphone, ipad, mac, and apple watch. Controversy and antitrust thated the of the 30 cut apple takes from the app store. We will speak to the maker of the pump