is something that investors can and should worry about going forward. there you have the closing bell. weromain was reminding us, basically rallied into the close , closing just off our best levels of the session. you have some all caps really leading the way. not so much compared to the nasdaq, but doing better than they had been. for the week, we still see red for the dow, the s&p, and the nasdaq, and trading pretty much in line with what we saw the last trading day, pretty much in line with a five day average as well. no earnings because it is friday but we are getting ready for earnings next week. romaine: a huge week for earnings. we are looking at amazon,

alphabet, apple, companies in the s&p 500. folks are going to get a real snapshot. aey are really going to get much better sense of how these companies view the next couple quarters. it will be interesting to see whether investors are willing to look past those quarters and whatever help they may have for some type of recovery. george, global macro strategist at bespoke investment group. a lot of folks are focusing on the consumer spending side of the equation. once we are all free to move about the cabin, so to speak, we are going to go back to spending money, buying things. the other side of this equation is something that wasn't in good shape prior to covid-19, business spending. do you anticipate any material rebound from businesses sometime

this year? depend on is going to the economy. i can't say there's no chance of a rebound. i think tracking how business investment evolves is going to be somewhat of a challenge. acts isance, oil cap going to fall dramatically. it is a much smaller share than it was a few years ago. mathematically, it has to fall given have low oil prices are. to thegards manufacturers in the united states which tend to be pretty picturet in the overall , our tracking of five different regional manufacturing indices around the country shows an outlook at the lowest levels

since 2009. and heading towards similar lows from early 2009. sign as farainly no as leading indicators go of a turnaround in capital expenditures. really, there's no reason to assume companies will be engaging in an economy where uncertainty is really high. roughly 85% of companies are offering no guidance in the current earnings season. nothing about where the outlook is. that is as high as it has been since we began tracking this in late 2001. the uncertainty, which is such an important piece of the as it couldas high possibly be. these companies are telling us they have no visibility.

meandoesn't necessarily that everything will be bad forever, but in the near-term it is unlikely to see large amounts of capital expenditure. they are just flying blind at the moment. if you put the focus back on macro, how do you think about which data points matter to investors? jobless claims seem to be the premier data point. but regularly we see investors looking past it. it doesn't matter at the end of the day. it also doesn't matter if the data point is better or worse than economists anticipated. think this speaks to what we were talking about earlier. whether you talk about market strategists, people talking about the market with each

other, the way markets are priced, everything is screens. we don't care what happens in 2020. all we care about is the outlook for 2021 and beyond. and i think there is a case to be made for that up to a certain point. at the same time, where we go in 2021 is in large part dependent on what happened in 2019. if collateral damage from the various economic shocks we are experiencing, changes in consumer sentiment and capital expenditure, changes in government spending, if those different shocks continue building on each other throughout 2019, than having a iftained bounce -- sorry, those continue building on each other in 2020, than having a

sustained bounce in 2021 is unrealistic. it is important for investors to understand how enormous the shock to the economy has been in 2020. we are talking about a bigger shock in a shorter time than the start of the great depression. the policy response has been much better, but that doesn't mean that everything is going to be fine when it comes to economic output. one about the credit side of the equation, particularly with companies that were teetering close to some credit issues prior to this crisis? do you think the policy response and the appetite by some investors to invest in companies out there, is that enough to avoid a mass credit event? think a combination of factors are at play.

they are stepping up to make sure credit markets don't freeze entirely. they are to be applauded for that. that is going to have real dividends. see necessarily the 2008,utcome we saw in where you could buy bonds at $.30, $.40 on the dollar. the fed has said they don't want to see an outcome like that. and so you are not going to see those huge declines in credit prices and a snap back. what is far more likely is that you will see the rolling process ,f defaults, of credit stress and generally much stronger performance for corporate relative to the equity side of things.

so, because of a combination of government intervention, the credit side of things looks less dark, although there are companies that are going to default because of covid. that is going to have collateral damage as well. scarlet: george, great to get your thoughts. really appreciate it. that does it for the closing bell. "what'd you miss?" is coming up next and we will be speaking with transportation secretary elaine chao. this is bloomberg. ♪

romaine: broadcasting live from new york, i'm romaine bostick alongside scarlet fu. the question is "what'd you miss?" scarlet: if you look at equities, you missed a rally from 2:00 to 3:00 and we finished solidly higher after a mixed start at the open. we end the week on an up note when we started the week with oil plunging into negative territory. for the week, stocks are down, but it sets us up for an interesting place before earnings next week. when you look at the big measures andfed's trillions of dollars in fiscal relief have helped support the market.

do you see that? do you hear that among investors? it certainly concerns that people think you throughout too much free money out there and we go back to misallocation of capital and rewarding the wrong people, but i think that is not playing so much of a role here. driven bytly this is the way the central banks are designed. there is a fair bit of constraint. , iyou look at other programs

think it is the behavior of the market itself. market,a rally in the or if you also look at gold the money markets, there are record highs. people are driven by the so-called moral hazard trade. there is an argument rewardat the risk we structure that we normally view the market through, that doesn't necessarily exist in the same structure it used to be. we've heard from investors that have lamented the fact that there are buying opportunities they were looking for that would have the fed stepped to the sidelines and allow prices to collapse and they are not getting that opportunity.

how healthy is it for the markets in the long term if we continually have this backstop and we don't let market forces sort these things out on their own? happened overt the past few weeks, the shutdown , i think that was the purpose of central banks to stop that process. yet that does limit the stress opportunities. but if you think about the risk reward environment, is it really incentivizing risk or is it trying to plug the hole caused by the shutdown? i would say it is more the latter. nevertheless, if you do look at the high-yield market, take

energy, take some of the rental car companies, there is stress happening in other parts of the economy. there is definitely frustration happening in credit markets. maybe some of the stress opportunities are there. scarlet: when i look at how much things have moved, equities measured by the s&p 500 up about 27%. 15%-yield credit up about since march 23. what is driving the different asset classes? you say the rally is driven by different narratives. walk us through the narrative for equities first. >> if we can think about a broad-based rally, we can look at different components. on the one hand we have an you have distribution

in health care and utility and internet companies doing extremely well. that explains one part of the rally. some sectors like leisure and hospitality will see some recovery. lastly i think it is a function of the markets and you want to see an endpoint. you know what the solution is. companies will benefit from that. companies will be part of the rally. drivingtually really the stock market rally. that is how it looks like. to leave ithave

there. great to hear from you. strategy atmacro medley global advisors. coming up next on this program, we are going to head back to washington, where u.s. transportation secretary elaine chao is going to weigh in. this is bloomberg. ♪

hedgedeep it pretty well couldn'tn the hedges stop us from losing some money. but we still have quite a bit, so i'm not crying about it.

kept a large amount of cash or cash equivalents for a stormy day. so i think there's going to be very interesting times ahead and while you have to be extremely careful in this market, and we can discuss that, i think there will be also some good opportunities. i think you may have some big downdrafts. have you found opportunities to make money in this kind of environment, which admittedly isn't that easy? tell me about that. that is a much smaller item. when oil went down -- we own a

refinery. what i think is a very good refinery. we own 70% of it. when oil started sinking like said,i called them up and we've got some storage space. get said, but it is hard to the trade through. but i will say they did a great job. they set it up real quickly. we set up an account. believe it or not, you never see this, we made some money on it, but relatively speaking, nothing x or something like that. but it was fascinating. you will never see that again in history, i don't believe, where they have to pay you to take their oil. it was just an interesting point

in history. again, you've got to look at risk reward. sometimes when you do those futures and they have funds, the same thing again as 2008 or any of these times before the market really breaks, playing in the game, market, in the oil is not for the faint of heart. backt's turn our attention to the coronavirus pandemic. it is wreaking havoc. i mention occidental petroleum. the company is having to pay warren buffett in stock for the financing deal you opposed. that must make you boiling mad. and i'm not it going to belabor it anymore. the board has changed. i can't really freely speak about it.

but i respectfully disagree a little bit with what you are saying. occidental has a lot of great assets. being that said, i can't argue with you that it was one of the most ridiculous deals that i've ever seen. but those days are over. we are working together. think, there are things where i think the shareholders will eventually be rewarded, i think. the risk reward is in your favor, i believe. romaine: we were just listening to carl icahn speaking earlier on bloomberg television. let's turn now to what has been going on in washington. almost $3 trillion in fiscal aid.

willany trillions more come out of washington? emily wilkins is bloomberg government reporter, joining us to help walk us through this. let's start with the bill president trump signed. this is the billion-dollar small business bill that is largely to restart, replenish that ppp program we have been talking about so much. when did that money start to go out? >> the main focus of the bill that the president signed into , getting is that ppp small business back on track. thatieve the plan is for money to go out as soon as possible. they were held up a bit because democrats said, we can't just do small businesses. we need funding for hospitals, for testing.

democrats also tried to get funding for states and localities. they were not successful in that. that is something we are expecting to be a big battle in future coronavirus stimulus funds. scarlet: a big point of contention especially after mitch mcconnell made some comments about states perhaps should be able to declare bankruptcy and ask for protection from that. talk a little bit about what is in the works in terms of the next step. speaker,osi, the house has basically talked about a wish list the democrats have, but mitch mcconnell and republicans don't seem to want to go anywhere near that. >> more funding for states and localities, certainly for a number of other items. there's been discussion for everything, such as another round of stimulus checks, potentially something with mail

people cano that still to the polls. but you are seeing mitch mcconnell kind of start to pump the brakes. how much are we spending, how much do we want to spend? talk when you guys passed the tax bill? i think we are sort of at the point where lawmakers have pushed out a couple big packages and they might need to be getting into more debate. romaine: quickly want to get your thoughts on what we know about any potential measures to help cities and states. the municipal issues that seem to be getting worse and worse. sniping a little bit of between mitch mcconnell and andrew cuomo about this issue. >> governors are not happy to

hear mcconnell state that states should declare bankruptcy. mcconnell specified that he thinks some states have mismanaged things. just coronavirus. now lawmakers are starting to get into the extent of the policy. how much do we want to change? those are the kinds of things we will see a lot going forward. scarlet: we all knew that bipartisan cooperation had an expiration date. emily wilkins, thank you so much. coming up, we are going to stick with washington. secretary of transportation elaine chao will be joining us next. this is bloomberg. ♪

give you at's snapshot of what happened in trading today. we ended the week on a positive note. u.s. stocks ended up closing higher. gains of at least 1% for the s&p, dow, and nasdaq. the russell 2000 gaining 1.5%. the dow losing 1.9%. it was a dramatic week if you look at what happened in the energy sector. energy, one of the worst performers for the week. energy stocks only gained 0.2%.

they managed to come back a little bit. this would be a five day glimpse. up 1.7% onks closed the week. of questions here about what happens next. demandblem of stagnating , collapsing demand, an oversupply of oil is not going away anytime soon. all the keep in mind interruptions in the energy market. brent crude down 22%. we saw copper move lower in the week. a lot of those soft commodities. i also want to point out, next week is going to be the busiest week of the earnings season as far as large-cap companies. we are going to get amazon, alphabet, apple.

we are also going to get a lot of names like starbucks, mcdonald's, gilead, boeing. we are going to get a close look at how these companies really performed and get a much better description of how these executives view their businesses going forward. some of these businesses have effectively been on shutdown for quite a few weeks. scarlet: we are going to check cirilli to discuss the transportation sector. >> i want to welcome our bloomberg radio and bloomberg television audience as we are joined by transportation secretary elaine chao. i want to start with the airlines and the airports. do you think that more federal assistance is needed in the next round of stimulus to support them? whatchao: let's see happens with the cares act.

about $50 billion to the airline industry, $25 billion to the transit industry, $10 billion to airports, that just went out in the last three weeks. let's see what the impact of the traditional resources will be. look specifically at amtrak, there have been some $700ates of them receiving million loss. they got $1 billion in the last package. what has to be done to ensure that they are going to be ready once things are reopened, for passengers to be safe, but also to make the needed changes within their system to better serve the public. sec. chao: amtrak has never made money. this was going to be the first

year that amtrak was going to make money. they've got a new president now who is just terrific as well. amtrak has experienced unprecedented drop in passenger volume. the regional amtrak train is operational on a reduced schedule. passenger volume has decreased more than 95%. is, ast important thing the economy comes back, that people have confidence and take advantage of amtrak service. kevin: one of the things you worked hard on was making sure that workers, whether in the airline industry or on amtrak, that the workers who are on the airplanes and on the trains, that they have the needed

supplies to keep safe. workersassure municipal and transportation workers around the country that they are going to have the masks they need once things get up and running again? sec. chao: the safety of passengers and crews everywhere is our concern, as is job security. billion that was given to the airline industry, the travel agencies, the ground crews, primarily goes to payroll. most of the $25 billion that goes to transit is for payroll. we are concerned about workers' jobs and safety. with this money, they can by atd sanitizer, clean more the facilities, the trains, the airlines, the airplanes

themselves, and also just maintain operations. maskslly the provision of which is so important, we are working on that issue along with state and local authorities which have jurisdiction over the transit agencies. kevin: secretary chao, taking a break from amtrak and the airline industry, americans have woken up to just how dependent they are on trucking and truckers who have been crisscrossing the country to deliver amazon packages and the like. team hasand that your been working with the trucking industry to allow them to be able to move more quickly. what specifically have you done for the trucking industry? about new let me talk american heroes. nobody used to talk about supply chains. very few people used to think

stocksow their grocery get stocked. supplies andical equipment are being transported on trucks. i want to give a big shout out to america's truckers. they are truly american heroes. for the trucking industry, we are providing necessary regulatory relief. some drivers licenses that will expire, obviously they can't be renewed if the dmv is closed, so we are giving a waiver of 90 days for people to renew their licenses. also, truck drivers and trucking companies are supposed to have training for alcohol and drug testing every three years. vigorously this is not a good time so we have given an extension for 90 days.

we've also had an emergency declaration for hours of service. this is very technical. but they understand how important this is. doing commoning on sense things that will allow the trucking industry and truckers to do their job to keep america's economy going. be remiss if i didn't ask about unemployment numbers. given your previous job as labor secretary. ,s you look at these numbers unemployment filings and the like, it is cause for concern. are you optimistic that this might be sorted out or might be back on the upswing mid-summer or the end of the summer? sec. chao: the numbers are devastating, but they are seemingly decline.

in terms of unemployment insurance applications being filed. i have never seen these kind of numbers when i was secretary of labor. that is why the president last thursday talked about getting the economy back. assistance, the best thing to do is to get the economy back, and do so at the discretion of each state's governors. it is not a one-size-fits-all solution. but there is a three-phase recovery. economic milestones based on that will be very clear to governors and other leaders and how do you turn the economy back?

because not everywhere our hotspots. we have parts of the economy that can return in a deliberate and thoughtful way. secretary elaine chao of transportation, thank you so much for joining us on bloomberg television. coming up, much more market reaction. this is bloomberg. ♪

most nonessential businesses still closed, the retail sector getting hit hard. our next guest has been investing in this space and sees around 20,000 physical stores in the u.s. disappearing over the next few years.

currently he the founding partner of innovation global capital. he joins us to discuss how technology could be a saving grace here. with a lot of stores shut down here, a lot of warehouses either shut down or at least having their activity curtailed, how long do you anticipate that some of the more traditional retailers can continue in this type of environment? chao just said, this is devastating. operating companies for the last 15 years. i've even experienced viral epidemic before. but this is unprecedented. with the small businesses and medium businesses

of america. they are the heart of america and yet they are not seeing the kind of support that larger companies are seeing. we are concerned that we are not going to see a quick recovery. is secondary see infections coming back. offight have on and sheltering in place. that could really challenge the balance sheet of many companies. marcus is going to have to go into bankruptcy. that is very sad. there are employees who could lose their jobs. one of the challenges for the department store sector has been industry realignment has been pushed off for almost two decades, but at some point, perhaps this crisis is going to cause that to happen.

consequence, they have to be realigned. how do we support employees who are unemployed? scarlet: one question i have for you, you mentioned south korea. the kind of changes we are going to see in consumer behavior and psychology, i bring up south korea because they had to go through mers and hong kong went through sars 18 years ago. how much does that serve as a template for what changes we might anticipate here? thingse are a number of that are very relevant. general, everyone cold masks when they get a or feel it coming on. it is socially acceptable to wear masks in public.

america start in to do that. hygiene in addition to social distancing are things we should expect to be more widespread in america. two, there are people who say they are pretty critical and negative on retail. we think retail will continue to be critical for years to come. shop, whatw people they buy, will constantly evolve. we need to have that kind of dynamic evolution in the american economy to generate innovation. it, there's asee very interesting phenomenon. that is the shift to remote everything. years, we'veof been investing in companies that

top that secular shift digital technology. we are seeing tremendous amounts of interest increasing revenue. for brands like louis vuitton and nike, they are being proactive of how to adapt if stores are off-line. i want to get your take on some of that more direct model. saw new covid-19, we companies come in with this direct to consumer model, and then we've seen established models, nike shifting its somewhat away from that middleman retailer and moving more direct to consumer. do you see that trend

accelerating? >> yes. you ask a great question. brands werehot structurally not profitable. the companies that went into this recession that were profitable or structurally profitable, they will come out on the others. they had the really tough decision to close down their stores. gears, started to manufacture masks, donating one for every one purchased. weeks, almost 200,000. we have to be adaptive. romaine: all right.

really appreciate it. capital,n global founding partner there, and you probably recognize his name from affiliation with uniqlo. let's go to the first word news with mark crumpton. >> the number of people infected with coronavirus in the united past 24ose 3.5% in the hours. that is according to data compiled by johns hopkins university and bloomberg news. that was higher than thursday's rate but below the average daily increase. more than 50,000 americans have died. president trump now says he was being sarcastic, his comments on injecting bleach to kill the coronavirus sparked concern among experts who called it a ridiculous concept that could damage the lungs. lysol issued a warning that its products should not be use as an internal treatment for the

coronavirus. thursday, mr. trump noted that researchers were looking at the effects of disinfectant on the virus and wondered aloud if they could be injected into people. the president today signed a spending package that includes more money for small businesses devastated by the pandemic. during a signing ceremony, president trump called the bill a tremendous victory. the new law would revive a small business loan program that ran out of money after being overwhelmed by demand. it will deliver tens of billions of dollars in aid to health care providers and expand u.s. testing for the virus. global health officials want to make sure that covid-19 vaccines and treatments are distributed quickly and fairly. the world health organization launched a drive to speed up

development of the coronavirus vaccine. they stressed it should be available to everyone. philippines, the president is threatening to declare martial law. he is accusing communist rebels of killing soldiers who were escorting food and philippines,e president cans deliveries during a coronavirus quarantine. the philippines has reported more than 7000 cases. many believe the actual toll is higher given limited testing. global news, 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪

around the world

fixated on coronavirus infection data bending the curve on the number of deaths but lost in all of that is another data point, the number of lives saved. partnering to change that. it is at madison square garden and it highlights the number of patients who have successfully defeated the virus. creativexecutive director at strawberry frog and he joins us now. great to speak with you. i love this idea. we need something optimistic. how did this idea come about? comes from ajust human truth, which is that everyone, especially here in new york, we are searching for a win , some hope and optimism as we are quarantined in our homes. like you said, we've become a bit obsessed with these numbers

that come out every single day. [inaudible] in the overwhelming figures is the number of lives saved. we really wanted to pay tribute to the successes, the daily wins, and celebrate the people responsible for them. that is what the tracker is all about. forecome a beacon of hope new yorkers everywhere. romaine: this is great. it is not just numbers that you are putting up there. you are putting up the imagery of some of the folks. i live right around the corner from a major hospital in new york city. every day at 7:00 p.m. it is raucous as everyone comes to their balconies and windows and cheers the shift change at that hospital. what has been the feedback to

this just from normal people out there? itself justtracker went live today for the first time. but it is part of a larger effort to really celebrate the health care heroes within northwell and across all medical institutions. so much.is sacrificing say, the 7:00 moments where everyone is having the celebrations, it is wonderful and great, but we also can't and thehe daily wins successes in human life. so that is what we wanted to do in addition to just applauding their efforts and say we are supporting them. they deserve to be celebrated. josh, what a wonderful

idea. everyone should go check it out. josh greenspan is executive creative director at strawberry frog. great way to end the show. that does it for "what'd you miss?" have a great weekend. bloomberg technology is up next. ♪ nowadays you do more from home than ever before.

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we're working to make things a little easier for everyone. download the xfinity my account app today. emily: welcome to bloomberg technology. i emily chang in san francisco. markets ending the day up but the week down. it was another week for the history books with u.s. unemployment hitting 20%. we are standing by for that daily white house briefing. the president now claiming he sarcastic