Romaine we tuck about the nasdaq being at that record high. 7 , 8 is still about below its previous high that it hit before the drawdown in february. Likell 2000 down something 14 . When you start to sort of look at how this rally has been distributed, there are certainly a lot of areas that can play catch up. We have seen that kind of bottom feeding. Somel traders picked up on of these stocks that they felt were little bit too beatendown. Looking for a bit of a rebound there as well. Still with us, sarah malik. I just want to talk about the support that this market has had from the Federal Reserve. Policy,banks, monetary both what has been implemented and what has been promised. Goinge point, the fed is to have to reckon with this, whether they should pull this back. Do you anticipate that there would be a negative reaction of any significance in the equity markets to the fed starting to unravel . I think they have been pretty clear in the fact that they are going to provide support as long as they have needed. It would be a surprise to investors if they were to pull back in the near term rate i think if they were to pull back, when thebe at a time markets are more stable. The fed should be there, it has , thishere, and really market backing arch, the vshaped recovery we have seen. So eloquent, stimulus, 500 i think you said, the types of stimulus we have seen this year. A mind blowing number. Global capacity, is it all about u. S. , is it time to look further afield . Where part of looking for we can look for investments, there are even areas like brazil, latin america, even places like e. M. , one of the worst performing regions going into the crisis. That could be an area like. Razil in the u. S. , small caps, another area. Europe come i think it will lag a bit of a cyclical trade. Arope for us would be more of shorterterm interest. I think over the long run, europe may continue to struggle given the lack of growth. Caroline always great to get your insights. We thank you for joining us. That does it for the closing bell. Whatd you miss . Is next, where we speak with the amazon head of sustainability. This is bloomberg. From bloombergs World Headquarters in new york, i am caroline hyde. Romaine this is whatd you miss . Caroline on the nasdaq, once again we march higher. Volumes higher, stocks higher. Volumes lower on the s p 500. President trump says not to worry about the china and u. S. Trade deal after trade advisor Peter Navarro signals it could be coming to an end. Over 2 million restaurants around the world fight to keep their doors open. As part of the bloomberg invest global summit, David Rubenstein spoke with Steven Mnuchin, treasury secretary, on a range of topics. Mnuchin theetary president has been clear. We put a lot of money into the economy. Unprecedented response and there is no question that money is having a major impact on the economy. Ppp, whichis the impacted 50 million workers, the direct payments of over 60 million, enhanced unemployment. Left they just Republican Senate lunch and we are beginning to discuss the aspects of what the bill would look like. We want to take our time because, number one, there is a lot of money we still have to put out. And we want to make sure that money Going Forward is much more targeted to the businesses impacted. D do you think it is likely that sometime in july a bill would best both houses . Secretary mnuchin i do. That would be the timing. As of now, would you say the fed has done a good of job as you would like them to do . And can you say whether the president is happier today with the head of the Federal Reserve . Secretary mnuchin i think the Federal Reserve has done a phenomenal job. We speak to them almost on a daily basis. These programs are a combination of the Federal Reserve and treasury. Every single one of these programs is now up and running. Bondve a municipal program, a commercial paper program. A main Street Program is up and running. Corporate primary and secondary. We have a program that lent to with ppp loans. The fed acted in an unprecedented response. I think the president is very pleased with what the fed has been doing. David this quarter, we have slipped into a recession according to the National Bureau of economic research. Do you think, at the end of this year, we might be out of the recession . Secretary mnuchin i do. Metricsitional economic arent really appropriate given that we shut down the economy. First, let me say, there were way too many people who lost their jobs or got laid off. We are not going to be done until we get every single one of those people back to work. Not really focused on the technical issues. I am focused on helping all these Small Businesses and all the workers. That is our job. I think you saw the recent employment numbers. People thought there would be another 8 Million People unemployed. Clearly, this is the ppp working. You saw great retail sales. I think you will see, the economy had a very bad second quarter. I think you will see a spectacular rebound off the bottom and the third quarter. Thed you were one of principal negotiators of the deal with china. Are you confident that they will be able to buy the products they have agreed to . Secretary mnuchin i have every expectation that they will. They have continued to tell us that they will ever since last week when secretary pompeo met with some of the people who flew in from china. I have that expectation. Having said that, let me just comment on i think the world wants a lot more transparency on covid. How did it start . How did it spread . How did it spread around the world and it did not spread within china . Yes, we have expectations that they will live up to their trade agreements but we also have expectations that they have to have more transparency around the disease. Romaine secretary of the treasury Stephen Mnuchin speaking with David Rubenstein. Dell shares higher after hours. Dell owns a stake in vmware. Dell is examining options including a spinoff, according to people familiar with the matter. Also exploring the possibility of buying the rest of vmware. Caroline lets get back to the u. S. China trade story. Obamas president undersecretary for commerce and international trade. Talk about the confusing statement that came from Peter Navarro. He says he was taken out of context. Hattie you read the tea leaves how do you read the tea leaves as far as where phase i is . Clearly, the comments were conflicting between what navarro said and subsequently the president clarified, saying that the trade deal was fully intact. I think, frankly, it is a reflection of how challenging the relationship has become between the two countries, not moreon the trade side but broadly. Mr. Navarro went on to say that we lack trust in the Chinese Communist party. In response to that, the Foreign Ministry of china came back and said that he consistently lies, has no honesty or trustworthiness. I think that sort of language is obviously extraordinarily unusual among diplomats and leaders, and i think it is a reflection of just where we are as two countries trying to get a trade deal done and dealing with a number of other important issues. What exactly is the relationship . Last week, there was that secret meeting in hawaii that seemed to bear some fruit with regards to china fulfilling its goal. So it seemed a little curious for navarro to come out last night and basically saying the deal was dead. Is the relationship there to make progress on this . Two things. One, the relationship is clearly strained. I would separate that from the issue of the phase one trade causedhich caused all china to increase purchases of u. S. Farm, manufactured, and other goods, off of 200 off of 2017 levels. The was all done before covid pandemic. As a result, i think it was always an ambitious goal but it now be frankly out of reach, just given where their economy is, and the demand and price of those goods to be able to hit those targets. Caroline fascinating. Really putting it into perspective. We thank you. This is bloomberg. Caroline Companies AcrossCorporate America have spent billions of dollars on diversity and inclusion measures yet results continue to fall support. Fall short. How can countries move the needle more effectively. Ww ongrossman, ceo of Bloomberg Radio now to discuss. Well be listening into the moves that company is making it the steps they are taking covid19 breakout, how they are focusing on their workers and indeed the moves the company can make to bring them back. , we welcome Mindy Grossman president and ceo of ww international. She joins us on the phone. We are delighted to have you here with us. Curious to hear how your family is doing, how your corporate family is doing, now that we are 15 weeks into this shut down and starting to slowly reopen so thrilled to be here. We have been up here since march i, so it has been certainly think a surreal time for everyone. But we are doing well. To your point, we entered the year with unbelievable momentum. Ww, we werehed my in the throes of our Digital Transformation, we did a nine touching with oprah, 135,000 people. Arch,all of a sudden, mid the world changed. Pivot, notuickly only for the safety and security of our employees and members, but it was important to us that we kept our Community Together because of our approximately 5 million numbers who are all digital. 25 of them also attended our studios. So, in march, in six days, we had to train 14,000 coaches, we pivoted our whole product and tech team. Simultaneously we launched virtual workshops which, in the first week, we had 15,000, and they are still continuing today. That pivot for us, even though subscriptionsed starting in midmarch, that started really picking up again starting in mid april. Now, our Digital Subscribers are is ourlltime high, as attention. It was no maniacal focus on not losing our community in a world where community and motivation and support are really more important than ever. Just even psychologically for people. We also took the learnings from the tour we did physically with oprah and said, what can we do for people who need this now more than ever . Everynched a fourweek, saturday virtual tour with oprah. And made the decision to make it free globally for everyone because that is really what everybody needed what people needed right now. That is what our brand has stood for since the very beginning. We had just in the first one over half a Million People live. We now have millions of people watch the content. We have been trying to do is use this as an opportunity to accelerate our Digital Transformation, reduce our real estate footprint, be able to add to the ecosystem of wellness. I think now we are seeing or isn ever health and wellness on top of everybodys mind. It is not a luxury anymore. It is a necessity. You mentioned her a couple of times the oprah effect here. What has she done for the brand, especially in this time. It feels almost more important to have that voice for a variety of reasons. She has been such a partner to me since the day i joined the company, certainly as a board member but also as a thought partner, how can we Work Together to really give people the tools, the motivation so they can live their best, healthiest lives. If you look at what we built out in terms of this wellness ecosystem, whether it is novation, mindset relationships, whatever that is, having oprah and her voice be able to amplify it is really our superpower to galvanize people. We saw it on the tour and we also saw it on this virtual tour. She feels, now more than ever, what we bring is going to be more critical for people. As we talked about moving into the broader scope of wellness, we said we would never abdicate our Global Leadership in healthy weight loss, which is so important. If you look at the number one factor in covid deaths, obesity. Diabetes is a huge factor. We are seeing from all of our data in terms of why people are is top ofnd what mind, it is i need to be healthy not just for me, but healthy to others. I need to not get sick to get healthy. I need to prevent what is happening i think covid has really changed the mindset. The other thing it has done is really identify the Health Disparities among communities. Be ank that is going to big focus as well. We have had these conversations with a lot of birds of the medical community we have had. It is a Health Care Crisis but it also speaks to the health of so Many Americans and the difficult spot they are in one thing i wanted to ask you, in terms of what you have seen, the pivot to even more digital because of the shut down, is the virus potentially the catalyst to finally moving to a digitalonly model . I think any company who has not used this as an opportunity to accelerate the Digital Transformation will be left behind. However, we feel that it is not like facetoface will go away completely. We will have a smaller footprint. But even before covid, we had a new product that is going to launch later this year, digital plus Virtual Group coaching. More support in terms of coach motivation once we launch that, we will have a suite of tools that people can look at at decide what is right for them, kind of picking my ww. We have been on this personalization journey, so not only do people obviously take an assessment for what program they want to be on, but now they will have options in terms of what they feel is right for them. , andst started reopening by the end of this month, we will have about 400 studios open. We started obviously safety and security. It started with people could come in and have a oneonone session with their coach. By the end of the month, we will have very strategic, smaller groups based on the size and based on the rules of whatever the location is. But we are really seeing that there are people who feel that accountability, that interaction, and that motivation. There are other people who really just want the support of their digital community. Connect, which is our digital social platform. We also launched connect root for people who were going through specific struggles right now. Young moms. Imagine college students. A lot of them dont even know if they can go back to school or not. But we are trying to do is give people that support and Community New matter where they are or how they want to interact. We are going to hand it over to our colleagues in bloomberg television. We will continue our conversation with Mindy Grossman now. O wonder, in terms romaine we were just listening to carol and jason, speaking with ww ceo Mindy Grossman. Coming up next, amazons commitment to a sustainable future. We will speak with kara hurst, amazon head of worldwide estate ability. Well talk about the 2 billion investment in climate technology. 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. Effort toin an eliminate its Carbon Footprint, amazon is investing 2 billion in Sustainable Land d carbon icing technologies. De carbonizing technologies. We have the amazon head of worldwide sustainability with us, kara hurst. First, we will talk about this fund. 2 billion. Where is it being focused first and foremost . Thanks for having me today. We are very excited about the launch. Really, this is spurred by our commitment to the climate pledge itself. We are going to focus on technologies and products and services where we will where we believe we will have the biggest impacts. You mentioned some of those, transportation and logistics, but we will look at a broad array of technologies and industries across some of those building materials, fuels, agricultural solutions. Romaine when you look at a company like amazon, obviously a big logistics company. Transportation is a big component of how you get to all these packages to people like ian caroline. As the Company Continues to grow, how do you get to a level where you can reduce that Carbon Footprint while still growing at some of the growth metrics investors expect you to continue at . Kara this is the opportunity we have in front of us. To use our scale for good. As we continue to grow, we will find ways to d carbon eyes. Bonize. Ecar we have focused on Building Internal systems, Data Collection mechanisms, to understand the business more fully, and to give our operators and Business Leaders more information so that as they are making those decisions about how to grow the business, where to invest, they can make them in a way that is more sustainable. Taylor talk to me about the Business Model behind all of this. Do you one day plan to roll these up into your virtual integration structure . Kara very early days. We expect will make investments across different amounts and different stages of the companies we partner with. Those could be investments on different levels. I think we are mostly interested in making bets that we feel like will have huge impacts on both amazons ability to decarbonize but other companies as well commit to the pledge. I dont think right now we are focused on what the returns will be or what our expectations are other than on impact. So we are mainly focused on obviously a diligence around those investments but on the decarbonizing potential. Caroline it is such a complex and aggressive target you have set yourself. How much more difficult has it become in the age of covid . I look around me. Single use plastics have become front and center once again. You are suddenly seeing so many more packages being sent out, i am sure. How are you tackling this at amazon . Kara it is a great question. I think there is both things we are learning in this moment and things we have always been doing. Packaging, we have been investing in more Sustainable Packaging solutions, eliminating waste in our packaging material, for well over a decade. Lastve taken out over the several years about 33 of our packaging waste. We have eliminated 1. 5 billion boxes. We are doing those things anyway, which allow us to scale up at continue to really reduce the amount of packaging waste that a customer might receive when their order is delivered. We are also seeing potential for innovation in transportation and logistics. We are seeing people really lean into the moment of our interconnectedness, understand what the world looks like potentially when there is cleaner air to breathe. I think there are interesting opportunities and robust conversations people are having romaine i am curious as to sort of the roots of the current initiative. Reporting about amazon employees pushing the executive leadership to do more on this particular topic. Im also wondering whether you are getting pushback or encouragement at all from customer base, order the customers not really care as long as they get their package in a day or two . Kara i think our plans have been in place for a number of years. We started talking about net zero goals in 2016. We had the Packaging Program in place for well over a decade. For us, this is staying the course but accelerating that pace. One of the big motivations for us was looking at the science. The ipcc reporting was alarming. It really shook the sustainability community, the science community. And said, we are on the clock optionis is no longer an for us. We have many employees across the company who are excited about this, motivated by it. Sometimes, the constraints drive really interesting innovation. Taylor analysts on the street love the investments you are making in one day shipping, but then i am getting a box every day unless i say, i will wait until i get one box with all of my items, may be the end of the week. Is the onus on the customer, perhaps me, instead of on you, saying amazon is going to wait and not ship all of your packages in individual boxes . Kara one of the things we learned when we built this carbon system of record, which allowed us to look at different modalities, meaning how we are delivering things, but also different options. A we want to become Sustainable Company on behalf of our customer, i want that to be something that they have when they shop with amazon, not necessarily something they would have to choose. What was interesting when we looked into the granularity of that data around the carbon system, how we are able to look at different ways packages are delivered, the faster delivery speeds that were enabled by some of the newer facilities in our Transportation Logistics actually help us to lower carbon emissions. So, speed in that case is a friend to sustainability. Some of those same day, quicker than sameday, one, two hour ourveries are actually lowest carbon option. Romaine appreciate you coming on here and talking about this program. The amazon climate pledge fund. Kara is head of worldwide sustained ability. Lets get to mark crumpton. Record u. S. Treasury secretary Steven Mnuchin believes that the recession brought on by the coronavirus pandemic will and by the end of the year. I think you saw the recent employment numbers. We put 2. 5 Million People back to work. Clearly, this is the ppp working. You saw great retail sales. I think you will see, the economy had a very bad second quarter. I think you will see a spectacular rebound in the third quarter. Mark secretary mnuchin made his comments at the bloomberg invest global summit Novak Djokovic tested positive for covid19 two days after an exhibition tour was cut short. Anda criticize the event djokovic himself for embracing few virus restrictions and for holding parties in belgrade. Djokovic says he is displaying no symptoms but will psy felt will selfisolate for 14 days. Dr. Anthony fauci, the u. S. Infectiouss top disease expert testified before a House Committee today about the timeline for the covid19 vaccine. When, and i believe it will be when, not if we get favorable candidates with the results, we will be able to make them available to the american public, as i said to this committee months ago, within a year of when we started, which would put us at the end of this calendar year end the beginning of 2021. 2. 3 the u. S. Has recorded million coronavirus cases and more than 120,000 deaths with rates of infection increasing among states to the south and west. A massive 7. 7 magnitude earthquake hit ask this morning, sending residents of the capital fleeing into the streets and triggering a tsunami warning for the coasts of central america. The u. S. Says the earthquake was centered in oaxaca state. Officials Say Communications have not yet been reestablished. The second president ial debate between President Trump and joe biden will be held in miami. The events original host, the university of michigan at ann arbor, pulled out two concerns. It will be a town hall style debate. The two candidates are also expected to face off september 29 at the university of notre dame in south bend indiana, and in nashville, tennessee. Minutes since the market closed. Take us through what you were looking at in terms of some of the key concerns, the key stories that have been on your agenda. Taylor not all is well in the credit markets. 13 companies filed for bankruptcy protection last week. Weve that over into shares of carnival, no cut to junk by s p. Shares dropping about 2 in afterhours trading. If you look at this chart i am showing in the terminal, we knew that the number of distressed issuers had jumped almost 900 a few weeks ago, all as high yield spreads throughout to 1100 basis points over treasuries. Some of that has calmed down. That not be enough to help these companies prevent themselves from filing for bankruptcy. I want to bring in kate crater, who has been covering restaurant industry. Across assetu look class, this time within the restaurant industry. What are some of these restaurants telling you about some of the hardships they are facing . They are facing impossible hardships. You have read about it and im sure you have walked by so many closed signs, places shut down. They are having to go through three months of no business or such limited business, now theing at 50 capacity in best case scenario, really challenging rate. Caroline we are looking at pictures of people standing outside, taking drinks. There is always a fiesta like feeling when you drive through brooklyn or you are coming up to new jersey or new york. Plan by thents rules as we start to see these open up . I would say, by and large they are not. Not by and large, but a lot of places are not. They are trying to get back to business. Even at 50 , it represents some revenue for them. Peter berenson suggested, a big restaurant where you can sort of socially distance. But if he had a small business, he would may be risky 5,000 fine just to kickstart the engine and put your car in first gear, second gear, and let people know that you are ready to go. Romaine cities out there have allowed people to go back inside restaurants, sit down, and order. There are still limitations on capacity. Around the time that this crisis started, we heard from Restaurant Owners saying that they need to be at 80 , 90 capacity to make a profit. How do you operate to make a profit off of 50 capacity or less . That is the billion dollar question. Danny meyer said it did not make sense for him to do business at 50 . The good thing is, a lot of restaurant tours are so resourceful and they are figuring out ways to make it work. They have put together grocery kits, meal kits, doing these fantastic drinks to go. And a lot of, it is helping them get by. Some of them are seeing between 30 and 50 of the business they have been doing. That allows them to employ some people, so it is something. Businesses,ot these especially the independent businesses, a part of the fabric of our neighborhood. Thank you, food editor at bloomberg pursuits. A programming note, join bloomberg for our annual broadcast of the boston pops fireworks spectacular. Carrying on the orchestras fourth of july tradition. But this time, of course, from the comfort of our own homes. You can watch it on bloomberg television, listen on Bloomberg Radio or at uber. Com. Bloomberg. Com. Among many do well americans because people know him so well. I do think it will be difficult for him to somehow catch up to President Trump in terms of his subscriber count or social media following, so he should lean on people who already have preexisting followings. Americans get their information from many different sources. I believe joe is poised to compete and win in the fall even if his youtube subscriber count does not quite catch up to President Trump. Emily what do you think biden needs to do to continue to gain momentum, especially at a time when you are in the middle of a pandemic . Andrew what is interesting, i think this current landscape is favoring joe. Of trump, thee worse he seems. Joe is just rising steadily we are familiar with him. The fact is, if joe reaches out to you and says, will you work with me on this, most everyone will say yes because most people are very eager to see trump out of the white house in the fall. Emily you championed ideas in your campaign such as diverse a versatile basic income. We are seeing bidens policy team come together and it is more centrist. What is your take on that . Ofrew there are now dozens legislators who are championing emergency cash relief during the pandemic. We know that this will extend for months and years. I am optimistic that joe and his team are openminded about Different Solutions to help us get out of this deep, dark hole we are in. Tens of millions of jobs are gone for good. Back, whichcoming would still leave us in a hole Something Like two times as deep and dark is the great recession. When i talked to joe and his team, they are openminded about Different Solutions. Often do you talk to his team . Is it at the point that if you won, you think you might have a job in the administration . Andrew our teams are in touch. I talked to joe a couple of weeks ago on his podcast. He is supposed to come on mine. I try not to bombard joe myself because i know what it is like to be the candidate. You have a lot on your plate, especially in his case because we are all relying on him to win in the fall. Pandemic, we in a have protests against Racial Injustice around the country. How does that all play into who he should pick for his vp . You hit the nail on the head that we are in the midst of what some coffee omni crisis. I dont have any inside info, but i know that, laras that Kamala Harris is one of the front runners. A lot of it is about joes chemistry with the person because he will have to govern with that person for four or more years. He knows that chemistry better than anyone having served with vp served as vp himself. Romaine we were just hearing from former president ial candidate andrew yang. You know who else interviewed andrew yang . Joe weisenthal, way back when when no one knew who he was, joe snagged a great interview with andrew. I dont want to talk to you about andrew yang. I know you are eager to. But i want to talk about the pmi numbers we got this morning out of europe. Not only did the headline eurozone numbers come in pretty hot, but we saw france, that composite number coming above contraction level. Joe i am happy to talk andrew yang. We could do a full show on him sometime. But understand we have to get on the key news of the day. European pmi, very interesting. A lot of other data recently. They clearly came in better than expected. Even in the case of france, above 50. That means expansion. That is good. But if you look in the details, there are still some concerns. Biggest,ne of the overall, there is still job shedding. Even with the recovery, the reopening, firms on net through the month of june so far have been cutting jobs. I find that to be worrisome. You would hope to see at this point rehiring, payroll expansion. Not seeing that yet. I want to be excited, optimistic about the betterthanexpected numbers, but caroline so we need more data when it comes to europe, and the u. S. As well. Some numbers to hang our hat on in terms of this week. What are you looking at in terms of the next key data point to be sifting through . Get personalwe income and spending numbers for the month of may. I think that is going to be really big. Remember, last month we got that huge unexpected 10 surge in personal income. Nobody saw that coming. But it was because of the efficacy of those checks that they cut. But the check was a onetime thing. We had the brief period where there was a cap between wage income, which obviously collapsed, and total income, which surged. Now, we are in this situation where people are coming back to work but Household Incomes could be down. Imagineange, hard to another period in history when people were gaining jobs but incomes were going down. Caroline i know you have been tweeting out all the credit card spending that is still happening even though we have got concerns about covid and there is a rapid rise in cases. People still willing to flex the plastic, it would seem. Taylor Bloomberg Technology is up next in the u. S. Romaine have a great evening. This is bloomberg. Emily welcome to Bloomberg Technology. Twitter puts up yet another warning on a tweet from President Trump. This time, the president tweeting that if protesters in washington, d. C. Try to set up an autonomous zone, they will be met with serious force. The president posted the same message on facebook