On the s p 500, there were a lot of concerns that we would not close that gap overnight. I think we just about closed that gap at the close. Thatine it is interesting you are getting this risk on move in stocks but also seeing yields getting crushed. Taylor it is incredible, the moves we have seen. When is the last time we saw the nasdaq at a record high, gold at a record high . Where do you find value when spreads are already compressed. Caroline lets get back to nancy. Please, onctive, which is speaking your truth. Is it the bond market, or the stock market and sheer liquidity winning out . Nancy i think the bond market is more right than the equity market. Be ague that this will stairstep recovery. Acronymsalphabet soup for how we recover. We saw anarizona, so opening and a partial shot again. States have shut down 30 of gdp. The real concern that the equity market will have after the election is what is a sustainable level of earnings growth. Aile Technology May eke out 1 number for the year on earnings. The rest of the market is really struggling outside of housing and technology. The equity market is responding to massive amounts of liquidity. Romaine others will be crossing the wire. Disney a little later. There is some news on novavax. Early Study Results saying it was well tolerated. We will try to get some more information on that. Taylor really interesting. Some of the key data we were waiting for, the fact that that stock is up 4000 or so year to date is something we were keeping our eye on. You tucked about the bond market seemed to be a little more right than the equity market at this time. Cccs,ple see the perhaps breaking that distressed signal and going back to spreads we have not seen since before the pandemic. Is that not telling you that risk is priced appropriately at this point . Nancy what no one can really estimate is that we have never been in an environment like this before where we had an artificially driven recession not artificial to those lost love ones. But i mean it was an exile ousice event an exogen event. Then we have fiscal policy we have never seen before. Smallcap Growth Stocks outperforming smallcap value. I think half of those companies dont have any earnings. As growth atg it any price for these companies and theya and nikola, are not generating earnings or reasonable revenue growth. Disney is currently breaking at the moment. Coming in with Third Quarter adjusted earningspershare is a beat. This is the fiscal Third Quarter for disney. 11. 8 billion is where the revenue stands. As a slight mess. We are looking at the that is a slight mess. It is all eyes on parks and experiences. 85 ine that is down yearoveryear. Anyone in the entertainment space or any business that requires packing in crowds. The question here, what kind of provide . Does disney right now, these numbers not great. Of course, the street was not really expecting a homerun. Caroline the Cable Network networks are media doing well. We have got earnings coming thick and fast. How much do you expect forwardlooking guidance . Nancy the companies that have provided guidance have done much better than those that havent. I want to see companies starting to give us some insight into thanthey expect rather using the pandemic as an excuse. I do think it is important for management to tell us what they know. The numbers have come in enter than we expected that come in better than we expected, not the street. I think that is what has to happen next for us to break out on the fundamental basis. Caroline update for disney. Subscribers for disney plus below expectations. A bit of a hit. Plusne those espn subscribers, 8. 5 million. Caroline slightly better than expected for espn plus, but not for disney. Nancy, so great to have you with us. That does it for the closing bell. Whatd you miss . Is next. We will be taking a look at those disney earnings. This is bloomberg. Caroline from bloombergs World Headquarters in new york, i am caroline hyde. Romaine this is whatd you miss . Caroline markets closing out another record high for the nasdaq. Money flows into the u. S. Sovereign bond market. Meanwhile, smash and grab. China does not mince words condemning president trumps demands for the viral app tictoc. And, closed restaurants among the hardest hit by covid19. More on now kitchen can stay open and the future of the food business. First, earnings thick and fast. Romaine on the parts revenue, that was down 85 yearoveryear. The studio entertainment business, that was down 56 . Here are the subscriber numbers for disney plus. 57. 5ibers came in at million. Estimate was for 59. 4 million. Subscribers did come in above estimates. Subscribers, 35. 5 versus the estimate of 33. 8. The estimate was for a loss. Taylor shares moving higher, Activision Blizzard beating for a second quarter. Fullyear Forward Guidance looks great. We are on the phone with activisions longtime ceo. This sums it up. For the near term, everything looks on track. Caroline lets turn our attention to the artist formerly known as weight watchers, ww international. Second quarter revenues below estimates. Revenues at 330 million. Notably, we are also seeing earningspershare much below estimates. A 35 y, they are seeing expense related to oprah winfrey. Second quarter earningspershare not a comparable figure overall. Story wenother big have been talking about is tictoc, microsoft. I put together a chart to talk about who could perhaps benefit. Much has been said about snapchat possibly benefiting. Facebook,urse, influencers who might get paid well. Some of said a be they are going back to instagram. About 2. 7ok family, billion act of monthly users. Of course, all us all of this comes as Chinese State back to called it quote theft. They, what do you make of tracking by china, now coming back to the u. S. And calling this theft . Shery we are seeing very strong words coming out of china, especially from their editorial, the china daily. Their foreignto ministry, officially declining to comment. They said that they should not openness pandoras box because everyone will be using this to undermine. Even china itself has acknowledged they do not have that much capacity to react. China, objectively against, retaliating chinese companies. We have seen in the past in response coming from china on every u. S. Action being rather proportionate and measured. We have seen each others officials being sanctioned. Tone china has taken has been measured. Romaine a lot of talk about the politicians. What about the executives that bytedance . Are they willing to relinquish control or fight back . Shery the founder said that the u. S. Is not trying to save tiktok, but kayla day off. I t could happen but hill but kill it off. That could happen. Negotiateen bytedance in europe but at the same time, it has received a lot of criticism from chinese medicine chinese netizens. U. S. Tries to go ahead app, thenons this really it opens up a pandoras box. It would not only apply to tiktok, but any Chinese Company that takes mobile information, popular games like call of duty. Thingse talking all gaming at the moment with the earnings coming in. The ramifications are also global and that other companies could follow suit. We have seen india lead the charge, interestingly. What is it about india and how are we seeing geopolitics at play . Shery this is a country that continues to clashed over border disputes. Early in june, they had that deadly conflict in them only as the resulted in 20 himalayas that resulted in 20 indian soldiers dying. Already in june, they have released the blacklist. Tencentre expecting a music video platform to be added to that blacklist. Whenalso coming at a time we are seeing more american interests in india, as well as sectorge growing mobile in india. Over fromnt, taking youtube as the most Popular Video platform. Romaine you can catch shery in a couple of hours on the how to show out there in melbourne. Daybreak australia. And bill gates will be talking with emily chang coming up on bloomberg technology. Caroline lets turn to diversity on wall street. Dedicated to being blacked on wall street. Carlyle group talked about clients. With mostly you are seeing more corporate plants that not only demand to have more diversity, are asking managers to provide diversity statistics as part of the investment program. Manympete for business, pensions are asking managers to provide that background. I get it. Fromther was a retiree eastman kodak. Motherinlaw is a retiree from state teachers. I want to make sure they represent the organization and beneficiaries. Romaine lets start off with disney. Reporting earnings. Kind of a mixed bag. Disney plus subscribers. 57. 5 lien subscribers. That missed average analyst estimates of 58. 4 million. Parks business getting completely decimated. Down 85 yearoveryear. 983 million in revenue. The studio business also down. Of course, the studio business includes much of the theatrical releases. We should point out that while advertising did drop, production costs also fell, which helped it post a pretty significant profit. Caroline lets have a look at beyond meat. Still seemingly delivering in terms of adjusted ebitda. Second quarter net revenue hitting the highest estimate. Their outlook for the year remains suspended until further notice. We are currently off by almost 4 but we were down. Tenderquarter average subscribers up 19 . Romaine way to go, guys. Caroline adjusted earningspershare, . 32. That is below estimates. Overall, 12 growth in revenue. Liking the market is not Activision Blizzard. This is a company that eat on the top and bottom line for the second quarter. Third quarter also looks better than expected. That in oureresting chance here, you are speaking overan executive who has 400 million players. They have doubled the number of subscribers netflix has. The do you make of some of original numbers that, frankly, gaming has done so well for this company. Gaming is doing great. All of the companies that have reported have reported Great Results and basically increased their forecast for the year, 40 current quarter. For the current quarter. Gaming is huge. It is amazing to see how huge it is from activisions numbers. Caroline all of these Gaming Companies are affected by geopolitics. I am just seeing some headlines that china and the u. S. Will discuss trade deal compliance. So says dow jones. With phase one of the trade deal between the u. S. And china will be assessed july 15, so says dow jones. Covid butre we seeing also geopolitics . Think across the board, businesses are doing pretty well worldwide. Some other regions of the world are not affected as much or more affected. In lots of the world, people are spending more time playing at home. All the Gaming Companies are essentially seeing Exceptional Results because of that. Romaine these Gaming Companies, they have to have the big games Everyone Wants to play, whether it is call of duty at activision, fifa at e. A. Is the production of updates to these games, new games, has that been affected in any way by the pandemic so far or any regulatory issues . Olga with employees working from home, that is a big concern delaysis would lead to and some of the game releases. Activisionsed to longtime ceo. He says, nearterm, a does not expect work from home to lead to any game delays. I heard the same message from take two yesterday. It is interesting that you are speaking with the ceo and he did say that he is a naturally cautious person. And he doesnt know what will happen in these next six months. Im wondering if that is what is going on with the share price right now, a lot of caution. Activision has always been very cautious in its guidance. In the press release, they mentioned Economic Uncertainty throughout the release. I think that is what is giving investors pause. It is true, we dont know what will happen this fall. With a lot of people losing jobs, they might not be spending as much money on games as the summer or spring. Caroline from new york, this is bloomberg. Taylor we are still on earnings movers. We started with activision lizard. Second quarter bottom line better than expected. Guidance onrward the top and bottom line. Duties those uncertain are of course about uncertainties are of course about the pandemic. 3750 rally yeartodate after their vaccine study just came out of phase one. Huge expectations coming into this and it does seem that scientists in the market are a looksderwhelmed by what like was otherwise optimistic signs from this vaccine. Caroline such volatility around that. Lets look at ww. Used to be known as weight watchers. Rebranded of course. Million, their highest ever. Slightly. Ssed ever so seeing the shares get a bit of a drag. Alsoe also seeking seeing perhaps some oneoff payments made to oprah winfrey. Romaine disney, a lot of eyes were on that. There streaming service, number of subscribers coming in slightly below one the street was looking for. Parks business decimated as you would expect given the covid pandemic shutdown. Lets bring it paul sweeney. He hosts bloomberg surveillance. Before that, he spent a lot of years over at bloomberg intelligence. What is your main takeaway here . Subscribers for a streaming service that has not even been around for a year seems pretty good to me. It is a very healthy number. The number that jumped out at me was 3. 9 billion. That is the covid impact on their income line just for the quarter. Devastated here for the quarter. I think the expectation is that this will probably be the trough quarter. This was just a brutal quarter. I think the focus was, how do how the film and entertainment business will reopen. Focuses on thehe call. Caroline they saw a decline because they were unable to release some of their films in theaters. Also, espn and sports, so many over whethers sports will be played for the rest of the year. The median network did pretty well, rising in terms of profit. Programmingabout costs being lowered . Paul yes. We saw that across networks. They are just not producing a lot of content. They are not incurring any costs of production because production basis is shut down. That is all deferred spending once hollywood cranks up again, they will crank up their production as costs go back up. The question is, how will they monetize the movies they have already made . Taylor in your earlier life, before we stole you away and were one, you are and of the most respected analysts on the street. What is the question you ask the ceo . Do you believe that on the others of this pandemic, that your parks and resorts business can return to its former glory. Will people go back to restaurants, will they resume getting on planes . That will be the big issue, i think, for them. They have the most experience in the industry and i suspect, if they can get it done, they will. Romaine one last question here, and this is really on content. Obviously, disney has a lot of content. Caroline has been running around the office doing the wrap battles all day long. We know that disney has that catalog. Ton did we see them get back refilling that pipeline that i would assume is a little bit bare right now . Paul they have a lot of stuff in the can, which means it is already produced, ready to go. When they can, they will get all that content out there. They will have to ramp up production around the world. They have lots of partners that go into making the movies they have. Once i think hollywood gets cranked up again, hollywood globally making films and tv, it will be right at the forefront. What is your best judgment about when you can crank up some of these businesses . Taylor we will get you those answers when we get them. We will be monitoring the call. Our thanks to paul sweeney. Lets get an update on the first word news with mark crumpton. Mark lebanons Health Minister says more than 50 people are dead in that massive explosion in beirut today. Authorities say the blast was caused by material that was flammable at the port. Because Severe Damage to building and shops in the area, including to the home of former Prime Minister saad hariri. Sis swirls upm isia the east coast. Reportednadoes were across maryland, delaware, and new jersey. The storm made landfall in North Carolina on monday. Senate Majority Leader Mitch Mcconnell said he is ready to support a new Coronavirus Relief package, even if he has certain problems with parts of it. People inthe american the end need help. Seems toeling that have been expressed that we would like to get an outcome. I certainly hope that we can. The coronavirus is still not over. It is still an enormous problem. I think the American People would like to see us working together and getting an outcome. Mark another Key Senate Republican said today he supports an increase in the foodstamp benefit. Kansas senator pat robert said agreement on that issue could lead to overall progress on the negotiation. Chief saysnations School Closures because of the coronavirus pandemic has affected more than a billion students worldwide. U. N. Secretary general Antonio Guterres is calling for the reopening of schools once the local transmission of the virus is under control. 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 a mark crumpton. This is bloomberg. Economy is doing all right. Weeksws and last durable goods purchases by households, bailout. The small share of the economy in Services Consumption is down. We dont really know the mix. The basket of things we all by, goods and services, is probably changing rapidly. Areeally dont know how we measuring inflation. Upside, downside, we just dont know. I think this is an example where , butncertain the is acute we are stumbling along here. When it comes to d. C. , in your work, what do you think we need to see in terms of support, and how long . I think i understand the concern of some members of congress. Butding support feels bad, this is the wrong time to worry about it. I worried about being at an Inflection Point where households that have lost jobs will get really anxious. I think it is really important to get that stimulus going now. It is late in the day, but i am hoping that the agreement they reach will give governors confidence to open schools widely. It is about confidence. We are not going to order kids to school. The state is not going to enforce truancy laws. What is really important is to open schools smartly and wisely. That is going to cost money. Sachs has some predictions out yesterday, saying in the second quarter, School Closures took about 2. 2 Percentage Points off of annual gdp. You raise a good point that, no matter what, schools open, people still have to spend money. Is there anything government can do to get people to spend money without a vaccine . We cant order people. It is all about confidence. That is why getting the economy going is so important. I would love to see a switch to the federal Government Spending its money on investment rather than just supporting consumption. But that is for next year and the year after. Onm still more focused continuing claims that what happened in july and the sample period. Justnuing claims are ridiculously high. And locking in households who had a habit of worrying about their job is something we have really got to focus on. Book, depths of despair in the future of capitalism. If we lose that, it appears the economy is in much more trouble than weekly data. Caroline lets talk more about the ramifications of covid on the economy. A new forecast suggests one in three u. S. Restaurants may close permanently this year. Twoing the first time in decades that u. S. Restaurant counts decline. They are calling for urgent action on the bill that would create a grant for independent restaurants. We are joined by the cofounder onthe lobbying group, judge top chef. Operating restaurants in new york, los angeles, and las vegas. Unfortunately, we have just had some technical issues. We will go back to tom. Mixed grill box. Spicy lamb sausages. That is what i want to be ordering right now. The creativity restaurants are bringing up but also why this bill is needed for independent restaurants. Romaine i hope we get him back. Some of the measures restaurants are taking to stay afloat is extraordinary. Restaurants really are the lifeblood of a lot of these cities. Them i doo lose believe we have him back. Caroline great to have you with us. We were just discussing how you formed this lobbying group, you are looking to congress to help with a grant. Talk to us about why this is money well spent, you think. Thanks for having me. . 90 of every dollar that comes into a Restaurant Goes back out in the form of payroll, rent, we are purchasing in terms of food suppliers, farmers and fishermen and winemakers and cheesemakers. Even the odd musician who comes in works a brunch. You want to take stimulus dollars and pass it through a particular industry, Restaurant Industry is probably good for that. Romaine i am interested, why did we not see more direct support, given not just the importance of restaurants in terms of the social fabric, but the amount of people they employ. And when you look at the supply chain connected to the Restaurant Industry, you are looking at a universe that runs far and wide. You factor in all the fishermen, farmers, what have you, it is probably closer to 20 million people. I think that the government put out ppp, they thought that would help, frankly it did not. It helped your business when you but 30 , 40 depressed, when you were mandated to shut down, ppp did not work. The real good news here is that i think we are up to 27 cosigners in the senate. In the senate, we have john whoyn and Elizabeth Warner cosigned the same bill. Actually create a huge economic incentive. Fore is a Multiplier Effect 1. 75 for every dollar that is spent. Studies have been done that without some sort of help here, about 85 of restaurants will close. Caroline i want you to paint that picture of how difficult it is to be running a independent restaurant right now. Individuals to take action in some way. Spent onion you want independent restaurants. And storm bruce in new york people have to take down the Outdoor Dining they have been investing in, how hard is it . Storm coming, all that material has to come back inside , has to go back outside. A lot of restaurants actually could not afford to purchase that extra equipment. This is what the funding is for. Payroll, pay rent, pay your suppliers. One of the biggest hurdles to opening right now, we owe money to our suppliers. They are not going to start shipping to us unless we pay them. Back in march, the money i was making went to bills from january and february. We have to make that up that is why the restaurants act is actually income replacement. That is what we need. Not only will it give us the ability to pay our bills, pay back rent, but it will give us a runway to open. In manhattan, we are still not opening indoors as well. I have 17 seats outside of a restaurant, doing about 15 of my business. In long island, we are about 6 capacity indoors, i am doing about 30 of the business. We have a long way to go. This is something that is just necessary for so many people. The other thing we are talking about, not only restaurants like my fancy restaurant. You were talking about every single mom and pop out there. We have spoken to a lot of Restaurant Owners who say, frankly, they are not interested in serving in gloves and a mask. Experiencehe new look like for you . I think once we have a vaccine and people are vaccinated, we will get through this. There are other big changes going on like whether this is the time to bring up tipping again. That is a conversation that we all have to have. But in terms of the experience, i think once we are through this, the mask and gloves will come off. People i know are still not willing to put themselves at risk. I think a lot of that will change once we have a vaccine. We will get back to normal. But the new normal will be a very different way of doing business. Ofaine there has been a lot i guess anecdotal evidence put out by restaurants about their profit margins, how many people they need any restaurant on any given day to turn a profit. It is a pretty slim margin. Once we come back from it, it will be sometime before we see restaurant at 100 capacity. Or 60 get by at 70 capacity and still be profitable . I think that depends on what deal you can make with your landlord. Some landlords are not willing to make deals. Others are. I think, right now, the smart play 40 landlord is to look at it as, i am going to be your partner for the next few years, we will work something out. We will have to make it up anywhere weekend. We get some rent relief for a period of time, i think that will be very helpful. Of us are hoping for our local restaurants here to come back as soon and as safely as they can. He owns riverpark here in new york, s , restaurants in l. A. Of course, a chef on top chef. This is bloomberg. Romaine happening right now, disney executives opening their Conference Call after their earnings. The big numbers of rule was focusing on where those streaming numbers. Coming is slightly below what was expected. Still a helpful business. 57. 5 million subscribers. Basically achieving the target they set for 2024 already. 85 drop in the parks part of the business. Taylor they are looking to launch an International Tv streaming service under the hulu umbrella. Caroline much more on this. Whatd you miss . Is over now though. Romaine you are watching bloomberg. Emily welcome to bloomberg technology. Im emily chang in san francisco. Investors today as gauge the outlook for a new stimulus bill. We are standing by for the president to deliver another news briefing at the bottom of the hour. Some more backandforth today about the president s push to force tictoc to sell to