think it is that unusual to be concentrated from certain leaders. it's the type of leaders you have to focus on. i do think it's a is -- it is a little one sided with the big tech names put of that doesn't mean they have to do exceptionally poorly for the market to do all right. that was quite a bell. >> yeah. >> the other observation, and i think this is important, is if we do get out right reflationary policy to try to generate inflation taking off, you will do better in industrials and basic materials encyclicals and financials and value in general relative to growth. come,oment, that day may and we will be watching for it. you are at near the three lows of the past 100 years on value relative to growth, so that trade is more than any other

trade in the next year or two. >> we want to run through the closing numbers here. looks like we will settle in around 2798 on s&p 500. 100 right around 86. 64. it was a pretty broad-based rally. -- chipotle,erest pinterest, waiting for more -- that could give us more guidance on what to expect with regards to the potential gain for equities. scarlet: we are waiting for earnings out of a railroad company, but at looking at trading volume, it is a broad-based event. it is interesting on the big updates, we are not getting the level of participation you might expect. there are people waiting if the

bottom has put in here. there is a lot of momentum towards figuring out when the economy will reopen, how it will be open by the treasury secretary todd public he about the getting everything reopened by the end of the summer. i think sometime in august? >> yeah. we should point now, we are getting news crossing the wire with regards to the covid-19 cases in the u.s. they rose to 3.1%, however, that is below the 4.4% average in the past we, so they are still rising, but they are rising at a slower pace, so that is good news. at least as far as this one particular snapshot of the covid cases, scarlet. scarlet: yeah. we also have earnings that have just crossed. reporting with csf, -- csx, reporting a drop, your ago, but higher then i what

analysts have been looking for. revenue is down 5% from the same time last year, but staying in line with what analysts had anticipated. the first quarter numbers is largely irrelevant. morgan stanley says it does not matter in this case. we want to look ahead for what they say in the third quarter. the second quarter is being written off as well. we also have some other headlines coming in. appears toah, this be by u.s. authorities as to whether traders profit off of tips regarding russia and opec. sayswill examine what it are suspicious wagers involving oil futures. we will try to find out more details and see if that has any material effect on the markets. still standing by his barry banister.

barry, let's talk about energy because this has been the big story of the past couple of weeks. energy a much smaller component of the broader market as far as its contribution to the s&p 500. when you consider where we stand right now, $13 a barrel, $14 a barrel for nymex crude oil and when you consider the health of some companies, how much of a factor that could be in the broader market performance over the next few months? barry: one of the things we have been wanting is the front month of the contract of wti had collided with the new supplies coming out of saudi arabia. those ships had been at sea for two weeks, and we knew the supply was coming. not wanting to be left with the expiring contract in supply and having to take physical delivery of oil with no place to store it, the front end collapsed, but if you look out two months, brent oil is six dollars above

the front month, just in august. i feel pretty good that as the economy recovers in the summer, oil prices will go back up, but we do need time for demand to recover. we need the dollar to top, and that would give you the best signal that oil has bottom, but of the stocks are oversold, and so, believe it or not, the strongest sector off the march 23 s&p 500 low has been the energy sector. scarlet: they had been decimated heading into march 23. when it comes to oil prices being this low, by and large, used to be that that was a net positive for the u.s. because consumers would do better with lower gas prices. but our economy has changed so much. is it a wash of lower oil prices, but -- oil prices, or does it actually hurt us? slice outside of a narrow of the taliban,, but most people are having to spend everything

they make and not generating enough savings, so if they save money at the pump, they may have a tendency to put that money into savings, and that doesn't help the economy, so the lower gasoline and oil prices is not helping that much on the consumption side. the shut ins and reduction of capital spending is a negative for the economy because the u.s. is a large oil producer now, and so i was set and declining while prices clearly negative for the market. we need oil to go back up. barry, so great to have you on. we really appreciate it. we wish you well. barry banister over that's the phone. now, thenews, right headline numbers right now appear to be for the fiscal quarters for the company coming out 2.5 percent on year-over-year. the epa -- the eps has adjusted

$3.98 versus three dollars 76 estimate by analysts. no guidance that we can tell coming out of the statement. we will keep an eye on this as we get it. scarlet: we have earnings out in las vegas. the casino operator first quarter net revenue of $1.70 billion, drop a 51% year-over-year. when it comes to some of its other properties, specifically project, looking at $67 million, down 92% the same time a year ago. the sands china revenue posted a drop from last year of 814 billion dollars. first quarter adjusted property down 70% year on year. las vegas sands really showing the extent of what the pandemic result -- with a locked on as a result of the pandemic really does to its bottom line.

it's top line and its bottom line. that does it for the closing bell. we will keep an eye on it. up,t'd you miss?" is coming looking at the global impact of political leadership. this is bloomberg. ♪

>> water bloomberg special, coronavirus response.

♪

>> the hope is that the numbers will increase to the next 30 to 40 days, but we don't know yet. you have another that we have a lot of testing in the they are not distributed in a way that allows for us to do broad testing. that testing is sort of the linchpin of all the other public health measures we are putting into place, so we need to ramp up testing, and we need to make sure testing is happening in these hardest hit places. you see the lockdown ending? do we return to normal, or will there be very specific health measures with social-distancing the need to be kept? >> that is a great question. i think everyone is looking

forward to the lockdown ending, but we have to do it carefully, or we will be back in the situation or possibly worse after we reopen everything. testing is going to be critical to ending this lockdown, and with contactk that tracing, access to care, identifying people who had exposure to people sick, and making sure they stay quarantined if they are not sick until they pass a possible window of getting others sick. those are the key measures. expert in you are an emergency medicine, which i learned a long time ago, a process-driven event. you go from step to step to step. steps,rt of the testing plural, is the one that is constrained? what is the thing that makes it so it is so darn hard to get tests done in this pandemic?

lauren: i think basically what happened is we had a not so great strategy, and executed that strategy and a not so great way in a poor way. so, we were starting from behind from the get-go. now, we don't have sort of this systematic approach to testing. it is a patchwork across the united states. and people are making it own decisions. here working with what they have. to get people tested, but it is not systematic, and no one has visibility on the whole system. so, there is a breakdown and where tests are being done, all the pieces that go to wood, the reagents, the swabs, you know, there are small breakdowns in the out of quickly. tom: exactly. i say this point -- i say this with great respect for the exhausted people doing this every day. i hear the clapping in new york city at 7:00 a.m. it is coast-to-coast. where is the cdc and all of

this? when i was in school, it was always cdc to the rescue. shouldn't the cdc with a full force of the majority leader and the president of the united states affect a uniformed test? lauren: i absolutely think so. we are hearing from the federal leadership that there was enough tests, and that might be the true, but because they are not spread out and implemented in that manner, it does not matter. we need leadership from cdc, from asper, from nih, all supported by the administration to rollout a broad and systematic testing program. absolutely. francine: what can we do better in the u.s. to make sure there is enough personal protection equipment? lauren: i think we need to look hard at our supply chain, and we need to be careful about how we are using ppe closely, and one of the pieces figure that is nicking sure we don't reopen too

forkly so that we have time bill for foreign source of ppe again and have time to distribute it against before we see another increasing cases if we do open too quickly. that is key for sure. and then, training people to use it effectively and appropriately continues to be really, really important. as new people come onto work and coming into the health care system, making sure they understand how to use it and how to be safe up putting it on and off. we were listening to lauren sauer at johns hopkins university speaking earlier on bloomberg tv. we want to take you to earnings that have been crossing the wire over the last few minutes here. lam research, the big company that provides the equipment to make chips. they reported earnings that shares were up 12% during regular trading. they are getting back 5% in after-hours training. adjusted earnings coming above

analysts estimates. revenue coming in at $2.5 billion, up 2.6% year-over-year. says no forward guidance because of the limited visibility, but he does say, customer demand for our equipment remains strong, and scarlet, we should point out that in the chips space, dma came out with their numbers. that was a big disappointment, and we're seeing shares fall. that could have a big effect while we are seeing glam shares going down 5% -- lamp shares going down 5%. scarlet: lamb withdrew its guidance. the railroad company withdrew its forecast, even after -- that wouldn't be an indication of what is to come. we will be waiting to hear more details from csx in a conference call and we're looking at las vegas sands. the ceo says the impact of a covid-19 pandemic on the

business has been unprecedented, and we see that revenue in the quarter was chopped in half. first quarter revenue cut in half down 51% to $1.70 billion. that is a pretty steep drop in the first quarter adjusted loss per-share was three cents. romaine? the one-to numbers are in line, but their projections seem to be giving people concerned they are suspending market supply. they also given outlook for the aluminum shipments saying they are cutting that forecast for 2020 and are curtailing uncompetitive capacity. they say they're continuing to review their asset portfolio, so a whole slew of things coming out of alco, the big aluminum maker. scarlet: a lot of moving parts here as we did through all of these different corporate earnings. the bigger picture, the

geopolitical pictures not much clearer. we do know the imf has predicted this great lockdown recession will be the worst since the great depression. our next guest has seen her share of crises. what makes the impact of covid-19 so unique? let's ask tina fordham. she is a partner and head of global strategy at avon hearst, political and legal advisory boutique in london. thank you for being patient with us as we worked through some of those technical issues. in the u.s. and europe where you are, we are five weeks into the worst of the covid-19 shutdown on the economy. policymakers acted very quickly, especially central banks. in retrospect, do you think policymakers relied on to much of the playbook they used in 2008-20 oh nine by throwing money at the problem first, but or was that the correct response? tina: the important thing has been the swiftness of the central banks' response because that gives national policymakers

to do their thing with fiscal stimulus. and so, i think investors are very grateful to central banks for what they have done, and we have seen some unprecedented scale of stimulus measures coming, but probably, there is still not enough to deal with this, and you know, what i mean playbook,t crisis this is not just a financial crisis. crisis, aconomic financial crisis, but a public health crisis, and i think that means we have to stop talking about a v-shape recovery. many leaders are doing it. and be prepared for a very different part of recovery and different measures to cope. romaine: yeah. tina, i am over the alphabet

descriptions as well. i am curious at what your thoughts on policy fatigue? we have seen in the u.s. some of the cooperation that got the two children dollar package out the door. the cooperation seems to be breaking down. now the discussions aren't really as constructive as they used to be. are we going to get to a point where we start to really need more money, more policy help, there will not be enough political will to get those things done? say ai could certainly lot of us have lockdown 50, so as policymakers are tired, the rest of us are struggling to get through as well. swiftition to the central-bank response, it was pretty remarkable to see legislatures, whether it is u.s. congress or the house of commons here in the u.k. or elsewhere, overcome these partisan differences in the polarization we have all been talking about for years to push these measures

through. think that moment of bipartisan cooperation will last long, when we think about the u.s., you know, there is one truism we can usually rely on, and that is republicans like to give money to four people and democrats alike to give money to rich people. in the future, around the stimulus, which we are undoubtedly going to need, we will see that cooperation start to break down, and also, questions about how much more can be agreed upon when we don't really have a path back to getting the economy working again. and to be honest, that is what worries me the most. thing no one, one is talking about is the cost of all of this age when it comes to national budgets. we hear the opposite that now was not the time to talk about how much of a burden it is going to be, but eventually, it will

be. what is this rising debt burden mean for my kids, your kids? are there historical examples they give us a glimpse of what is in store for them? millennialsi mean, had been hit with one crisis after another in 10 years' time, on top of the debt burden, really is going to alter a lot of things, and that will have implications for everything from consumer behavior to a lot of other trends. andgetting out of this moving into the next stage is going to be -- i think it is going to change our reluctance to a lot of things. a lot of criticism about, you mmt, andetary theory, helicopter money is what we are talking about. it has been remarkable to see certain governments who would have fought tooth and nail against these measures have had

to agree, and there is no alternative, but it does make real problems for future generations. however, we are not seeing the tea parties ties, the deficit hawks. they are nowhere to be found in this debate at the moment. romaine: yeah. well, there are reasons for that. i am curious then, you talk about the money we're spending now. the idea that we are effectively doing some kabuki version of mmt at the moment, but all of that -- but all of those bills will come down the road. when you look at political leadership and how some of the younger generations look at what they want out of political leadership, do you think that will materially change? right now, it seems people, despite their concerns still seem to be fine with the status quo. mean, if you are thinking about voting behavior in upcoming elections, i was

just looking at trends in the six key battleground states in the u.s. joe biden and president trump are neck-and-neck, but i think we have to remember something. we are a few weeks into this crisis, and it has been a shock. you know? world intalking in our the business and investing world about what the new normal will look like. for a lot of people, i think there is real paralysis about what to do and what, if any, measures they can take next. one of the things that will be really important about what the new normal looks like, how policymakers respond, how consumers respond, and everything else is if this crisis goes on for a long time, meaning these lockdowns are mostded, and and i think of us expect to return to lockdown, we are talking about many months.

even hurst is advising clients that until we have a vaccine in one to two years, we don't expect a return to normal, but i think it is quite hard for people to get their heads around that kind of time horizon, and it is certainly not something policymakers want to talk about. romaine: a lot of short-term thinking despite the fact we are in a long-term crisis. tina, you are wonderful. tina fordham, i appreciate you being patient with us as we worked through those audio issues. that is tina fordham, head of political strategy at avon hers to, a political and legal advisory boutique in london. back in the u.s., american companies are slowing their borrowing as earnings season carries on. citigroup's head of global markets will join us next to talk about that. you don't want to miss that. this is bloomberg. ♪ you doing okay?

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romaine: welcome back. you are watching "what'd you miss?" i'm romaine bostick. let's get to the first word news desk or mark crumpton is standing by. mark? mark: the load of the organization hopes the united states will reconsider funding for its agency. working on to fight the pandemic despite calls for his resignation. lastly, president trump announced a temporary halt of for wuhan from the united states. having awe are

difficult day with audio issues, but we will sure to get mark crumpton back soon enough. mark obviously standing by, ready to give you your national headlines. we are not able to bring you that at the moment. let's recap some of the earnings we have gotten so far. romaine, when i look at the kind of numbers that have come out, it is been a mixed bag, and investors looking ahead to what kind of commentary they will get from ceo's on the conference call, that is not been full of certainty or any kind of clarity because there is not much -- romaine: yeah. automotive with their guidance. this will be on repeat for most of the earnings positively season. sayave heard from ceos that madonna spit hard guidance for 2020. a lot of investors are discounting what they are seeing in 2020 saying we are going to

look for 2021, and maybe we will have clarity or current valuations will somehow catch up with that optimism. scarlet: yeah. we will see how that shakes out. we will bring you all the numbers as a cross. let's take a look at the credit market because u.s. junk bond issue went is fairly robust. $3 billion on tuesday alone. with more on the credit market, we want to turn to our wall street correspondent who was standing by with the key voice in the debt space. >> thank you, scarlett. we have richard zogheb who joins me now. what a time to hear from him. just last week, michael corbat, the ceo of -- says there was a record amounts of issuance coming out. richard, can you tell me a little bit about whether that havecontinue on, or clients gotten liquidity they had been seeking now? bind to we expect

continue throughout second quarter. there is a lot of companies. we have had record issuance on the investment-grade side. we have seen over the last two to three weeks at spillover into the high-yield side with a lot of high yields. we have seen that number companies have been in earning'' blackout, and so, as those companies come out of earnings positively blackout, we specked to see more issuance in may and expect that to continue into june. we are looking for a very busy second quarter, and i think as long as investor demand is there, we will continue to see supply coming across the board in the capital markets. junki: we have seen ig, debt really start to boost up here. what about loan markets, especially leveraged loan markets, where we have not seen that type of rebound yet? what is the expectation? richard: i think the leverage

loan market is going to be probably the last component, the last subsector of the capital markets that we see come back. a number of reasons for that. number one, we are really expecting to be in a low interest rate environment for an extended period of time. the loan market is a floating-rate market, so that market performs best and attracts the most amount of capital when rates are rising because of the floating-rate nature. that is number one. number two, that market was incredibly robust over the last two to three years. and there is a perception that a lot of companies access that market and very favorable terms. not so much lender-friendly terms, and may have pushed the leverage levels up somewhat, and so i think the investor base will watch that market, see how those names that have a high degree of leverage, have some really issue or-philly terms and

see how they perform in the midst of this crisis, and as we come out of the crisis, they will want to see evidence of those companies performing well and doing ok before they jump back in in the leverage loan market. we expect that market cannot come back for a while, and most of that volume to move into the high-yield bond market. i want to talk about that because if it takes a lot for that market to come back, i wonder what it means for the private equity industry? i know you work with a lot of these firms as they are considering a takeover among more depressed assets at this point? richard: i do think they will still have access to financing, but it will be a different type of financing. i think it will have to be much more bond-heavy, and it will have to be combined with some more structured loans. i think you will see the private equity firms, as they start to get comfortable, they we are coming out of the shutdown on the economy is recovering, that i think they will want to get involved quite a bit with buying

some of these assets at these levels. there are a number of auctions that were postponed because of the crisis. those will come back as well. and i think they will be able to finance. it will be a different kind of financing, as opposed to be one that was heavily leveraged loan oriented, it will be capital structures that have a lot more in the way your bonds, and will have a structural component as well, and probably be over equity ties at the outset with a potential ability take that equity out in the future when the loan market recovers. sonali: that is interesting. speaking of deal structuring, i want to bring us back to the investment-grade issuers. as some other retail companies looking to go to market are using will stay as collateral. an interesting time is we will state values are also starting to fluctuate. other concerns about that practice right now? richard: sure. i mean, look, you got to be very

careful when you are investing and lending in companies that are in affected industries. retail has been under pressure for a while. now, having said that, if you look -- if you structure the really stay-type financing with value, there was always a lot of good inventory that retailers have. there are great assets that retailers can fall back on to raise financing. that is exactly what they do in difficult times. i do think those financing that we will see more of those types of financing, and if they are properly structured, they can work for both company and investor. think you have to be on the lookout -- i think you have to heavythe look on going to on the advance written inventory going on in the sector. sonali: last question. i want to know what you think about some of the junk debts exposed to the bad buying program. the ones that are very clearly not going to make it, how are

investors looking at those debts? richard: again, i think the fed program that is buying so-called foreign angels, right? is -- that has done a world of good for those high end markets because that base doesn't have to worry about all of that paper coming into the high-yield market and absorbing all the demand and crowding out the names that were high-yield before march 22. and so, the names that aren't just don't benefit from the fed benefitedf they had indirectly -- they had benefited indirectly. i think investor base is interested in buying that paper. it will be a different type of equation involved. they will have to issue how you yield. you have seen some of that with recent issuances by movie theater companies and the cruise

ships. investors are demanding a higher rate of return in terms of a higher coupon in order to come in into that. richard, thank you for joining us. romaine, back to you. romaine: are thanks to sonali basak. we will be back in a moment. from new york, this is bloomberg. ♪

♪ with the u.s. house of representatives ready to pass a latest round of stimulus as soon as an pelosi is looking ahead, talking about a major package for state and local governments in the next run of legislation. she was on bloomberg tv earlier

was david westin on balance of power. take a listen on what she had to say. >> we will be able to do and a strong, bipartisan way to pass the legislation. extraordinary of how we will vote. but we will take a recorded vote. in the senate, they had unanimous consent with only a few senators needed to be there. we are 430 members now. we will need a majority to get it passed, but we will. romaine: an awful lot in this bill, like $170 billion to another $25e ppp, billion for testing. what is not in the bill that you think still needs to be done? ms. poulos: first, let me first say how pleased i am with what is in the bill.

two weeks ago, the secretary of treasury called me and said he needed a quarter of a trillion dollars and 48 hours. that would mean that by tomorrow, two weeks ago, the republican leader went to the floor and said it is $250 billion of the program. that is it. we are not making any other additions. we objected. the senators -- democratic senators objected, and we worked with our proposal and made a counter proposal, which was rejected by the republicans. for one week, they refused to negotiate until last thursday. then they realized they had no 250.e, just to do the there was so much more urgency. in the bill, we support the $250 billion. that is what we helped to put together in the cares act. we want to support our small businesses. there is no question that we would be supporting that. but it took them a longer time than it should have to agree

that we needed to make sure that the smallest of small businesses would be included in that, and that we would be addressing our needs of businesses because they are the key to moving our economy. the key is testing, testing, testing. hospitals forn to all purposes that that serves. finally, they agreed to the package we put on the floor at the time. we even did more. next phase,onto the if you wish, now. . david; does this take care of the rescue part as opposed to recovery? talk specifically about state assistance -- assistance to state and local governments. what is -- one of the prospects of getting that done? ms. pelosi: first, emergency, and that is what we did in the first two bills we passed in

march and a strong, bipartisan way. we started with testing, testing, testing. here we are a month and a half later and administration still has not fully implemented it. after that bill, hopefully they will. so, that was part of recovery. then we went into mitigation, to mitigate the damage to the economy with these initiatives to protect our small businesses, to provide more assistance in terms of health care. and now, we have to go further into mitigation. to help state and local. that means this, that means the health care worker, the police and fire, the first responders, the emergency services people, the teachers in our schools, the transportation workers, the essential workers. again, it is about the people. and these people are risking their lives to help save other lives, and now, they are losing their jobs. they are very essential for our

heroes that we have this assistance in the state, county and local governments, and to do this in a very significant way. to recognize the lost revenue they had from a stream of revenue because of the economy, and secondly, the outlays they make in order to address the coronavirus. david: -- romaine: we were just listening to the house of representatives, speaker of the house nancy pelosi speaking with david westin earlier on bloomberg television. time for our chart segment. abigail doolittle is standing by with a chart and something smart. take it over. abigail: i hope we can give you something smart. we are bringing in katie in a moment. we are taking a look at stocks and technology, starting out with the stocks. i'm curious about stocks because we have had a big rebound rally out of the lows, driven by the

chips. be go to the terminal and look at the chart. 40% at that, 40%, more than off the bottom border that pattern, that rising ascending wedge, the fact it is narrowing, tells us the buyers who were enthusiastic at the lows, less and less. yesterday, you can see the bottom of that pattern was dented, possibly setting up on the bottom. chips of nearly 6% back in the rising ascending range. it is unclear whether or not the chip sector will go higher for another apex, or maybe just lower. but either way, it looks like there is deterioration for chips, and the said and some of the leaders in the rebound rally. the talk more about this, i would like to bring in katie. katie, that chart to me looks like there could be weakness ahead. there will be some retesting of the lows for sure, and you have a great chart of the s&p 500

that i believe, if i am reading your signals correctly, may suggest the same sort of action? katie: really, the market is such a down driven -- right now. the comets we make on the s&p 500 can apply to the stocks, and just about anything. we have seen a loss of short-term momentum over the past week or so, and what that is done has reflected a reaction to overbought conditions, which has been in place for a couple of weeks. now we have downturns in those overbought, oversold measures. support aownturn does greater pullback and we saw yesterday. pullback that could be in the range of maybe one to two weeks, and it would be very natural to see that pullback based on the proximity of resistance levels for things like the stocks in the s&p 500, which had come

right up into its 50 day moving average, and resistance based on a couple of other measures. abigail: yes indeed. i don't think we have been able to pull up that chart quite yet. if not, as you were mentioning, your comments applied to any index. the other chart you are looking at, the s&p 500 chart. you can see the index of the 50 day moving average and that momentum on the bottom perhaps moving back down. and now, if we turn to your ex lk or tech index chart, there is some relative weakness relative to the s&p 500. that could be a problem given that tech is such an engine for stocks for such a long time? katie: right. that is exactly right, and that is something that is differentiating in the current environment from previous environments. we have seen arch capital technology stocks, which are the orgings in this ex lk technology etf. we have seen them outperform on

the upside and downside, but just yesterday, we saw a little bit of a chink in the armor of the large tech arena. that followed some overbought signals late last week and that is led us to look at this comparison of ex lk to the s&p 500 at the bottom portion of the chart, and you can see over the past few weeks, we have a lower high and the ratio between the two, meaning there is no loss of for technologyve to the s&p 500 as both have moved higher. and that does differentiate the current government from previous ones. that tells me we may on the downside when we do see a pullback, whether it happens imminently or later, we may see large-cap technology stocks underperform, and wind that be -- and wouldn't that be a

shakeout we have not expected? that would be the likes of microsoft, apple, netflix, and google. those names have held up relatively well today. i would go: great insights, katy perry people are worried that they had been outperforming. thatrtainly makes the case there could be underperformance. that would be quite a shift. us.e, thank you for joining scarlett, back to you. scarlet: thank you. those charts were very smart very coming up, trump calls out harvard. they said they will not except federal aid. this is bloomberg. ♪ ♪

♪ earmarks 12 u.s. point $5 billion for colleges and universities in that massive stimulus, but that led to a class but in the president and

harvard university. pres. trump: harvard will pay back the money, and they should be not -- and they should not be taking it. , but when i saw harvard, they are one of the largest endowments anywhere in the country, may be the world. they will pay back that money. trump's harvard denied claim, but this afternoon, the school will not accept any of the federal aid. let's bring in janet lauren. janet, just clarify for us here, harvard said initially that it never applied for the aid, that it was something that would've been distributed to the school. explain to us what happened. janet: yes. that is correct. the government came up with a formula that rewarded basically schools that give aid to low income students' pell grants.

recipients made up of 25% of the formula, and the other 25% of the totala looked at student population they did not receive those pell grants. so, schools with very large numbers of graduate students, they qualified to get the money as well. earmarkedd see some to get money,, including harvard, stanford, and princeton woodall said they would not accept the money. and the schools that applied for the money, like the small business program, it was divvied up. the education department use data it already had and said this would be your allocation. janet, once we-- get past the harvard's, the princeton's the stanford's, etc., and you get to the next tier of schools, they will surmise a full semester or two semesters, or they don't have

classes at all, or they have some sort of truncated version of it? janet: well, we don't really know yet what is going to happen, and whatever -- if classes don't resume in the fall, it is going to have a huge impact on colleges because students who are going to be incoming freshman or even sophomores, they are not going to want to do their experience online. it will have a crushing impact on tuition revenue. we know a couple of things. students who are returning will be needy or. many parents have lost their jobs and they don't have the same income they did when they built out the fafsa, so populations are going to be already, schools in the midwest and northeast are dealing with different demographics.d and some schools had to cancel

their summer programs, so they lost additional revenue. scarlet: janet lorna bloomberg news. from new york, this is bloomberg. ♪

♪ >> welcome to "bloomberg technology." i'm emily chang peri--- i'm only chang. -- i'm emily chang. oil rising from record lows. we are standing by for the daily white house briefing. to president expects it start a 5:45 p.m. eastern time. meantime, new york repor