of the oil market? can -- right after the bell. so, this is a great indicator of how much expectations and lookty, if you can take a at oil prices just two months distant and delivery, in the futures market, having a theerence in price of 30%, steeper -- the steep curve of recovery, and had remained in the situation where the demand for jet fuel and gasoline is down for levels we have not seen

since the 80's on a week to week basis. if you want to take delivery for crude oil, you can put it in storage but you probably will not have use for it. if you reopen the economy, you , but thisl recoveries is very much what is expected in markets across the board. romaine: we just want to check on the markets. we did get the closing bell. up on the three major indices. stephen mentioned small caps a little bit earlier. the russell 2000 up about 1.2%. thebiggest laggards were big cap tech names. we are awaiting alphabet, also

names like starbucks, ford after the bell. scarlet: in the big cap space, you have health care and communication services leading the decline. the small caps space, downmer and discretionary about 2% on the day. a rare case of outperformance. it has prompted people to start positioning for that recovery. romaine: we are getting alphabet earnings right now. those numbers coming through. q operating income at 7.8 lien. number,, and the operating margin coming in it 19% versus 18%. we will try to get some

comparables to what analyst expectations were. not seeing any forecasts here. believe we are getting more updates with taylor riggs. taylor: let me take you through some of the individual names. between gains and losses. the hardest hit sectors where -- retail companies, homebuilders. take a look at the auto index, also up 1.8%. i want to flip and take a look at crude as you have been talking about, also on a wild ride for the day, fluctuating between gains and losses. to get out of the june contracts

and roll forward into july and august contracts and try to avoid the fiasco we had last week. some of the individual movers, caterpillar for one. pepsi. 3m gaining as well. they are relying on more than just the masks. tripadvisor up more than 2%, cutting a quarter of their staff to retain cash. want to make sure the company is on sound footing going forward. the reaction we are getting from $37le, revenue coming in at billion versus estimates of $32.6 billion. it looks a little bit lower on the year to date basis. given that expectations here were all across the board, we

heard from some analysts that we were looking at a 1% gain in the first quarter in net revenue. thought wey said he could see a drop for the first time ever in ad revenue. they are coming out and saying they have experienced a significant slowdown but we will have to see if that started in march and how deep that was in april. just to follow on what you were saying -- go ahead, romain. romaine: sorry, i was just picking up. getting our wires crossed. i know we are getting some more of those alphabet numbers. was at q revenue number 33.71 the, above the estimate of about 32.6 billion. scarlet: absolutely. the number for revenue, better than what analysts had

anticipated. the revenue numbers for the most part topping analyst estimates. the overall story here is that advertising revenue is going to be a point of pain, not just for alphabet, but for all of these companies that rely on advertising revenue. starbucks has just reported results. they dropped 10% versus a gain of 5% last quarter. nevertheless, the company reporting second-quarter eps of $.32, compared with $.79 the previous quarter. starbucks adds that it has closed about half of its company operated stores in the united states. we are still just getting through some of these starbucks numbers. a little bit all over the place as well.

in, fiscalrd coming year adjusted loss per share. revenue down about 16%. the adjusted loss, $.23. on the revenue side, 31.3 billion. we should point out that ford at the top basically said, we are protecting people, preserving cash, and preparing for recovery. that appears to be this theme for many companies reporting. scarlet: we want to think our , for, stephen wieting joining us today. appreciate you sitting through the earning result. we will have much more coverage of the earnings that have crossed. that does it for "the closing bell." "what'd you miss?" is next. this is bloomberg. ♪ ♪

romaine: broadcasting live from new york to our viewers worldwide, this is romaine bostick alongside scarlet fu. scarlet: stocks finished down with the s&p 500 snapping a two-day advance. make a cap tech names and a lower. of course, alphabet reporting after the close. alphabet shares moving

a little bit higher here. there was a little concerned that a company depended on advertising might not necessarily manage. traffic acquisition costs coming in at 33 billion, slightly above the estimate. the cloud revenue, 2.7 8 billion, up on a quarter over quarter basis. the ceo saying that people are relying on google services. the estimate was for 1035. as expected, no outlook here, but they are saying that other google services are being used here. scarlet: we will give you more recaps as the hour passes. let's look at what the companies are doing right now in the race

to come up with a treatment. company in acap phase one trial. you so good to speak with this afternoon. withus how things stand your odyssey trial. when do you expect treatment of inflammatory lung injury associated with infection? has nowaceuticals initiated a study for hospitalized patients with severe pneumonia. it is a medication that

addresses the symptoms of the --y involved in reducee is that we can hospitalizations and complications as well. romaine: what does it take to sort of get this to a level where we see more widespread testing? how involved are the hospitals that this stage so far? x it suggests that we should be -- but ifistic that you see the comprehensive program, we would need to have medications and treatments. then treathylactic, the infection, then the late infection which we just spoke about.

side, talkingion about the changes between approaches. antivirals. be infection side will antivirals.rhaps by we will have to deal with hospitalized patients and the cost of anti-inflammatory will become very useful. scarlet: i am glad you are able to break it down for us like that. i want to step back a little bit here. issuesly, one of the key in the debate over reopening the .conomy is testing we are nowhere close to where we need to be or where we want to be. where should the private

sector's efforts be focused? forld it be on testing antibodies? >> i think we should do everything. have ase, we need to notrehensive plan, but do over index. noteed to be very careful to go after one solution. when it comes to testing, it is extremely important to understand who has been infected immune.also who may be we are hearing things about -- if the antibodies say they had the infection, what does that mean? does it mean they are immune? does that mean they are immune for a short period of time or a

long period of time? romaine: really appreciate you taking time to be with us. folks payinglot of attention to what is going on in your field. that is the vanda pharmaceuticals ceo. up next, the u.s. federal reserve given a lifeline to the junk that market. that is coming up next. this is bloomberg. ♪

are as we at where we come into the second quarter,

the outlook, we did withdraw our guidance. there is too great of uncertainty. we did highlight some of the challenges we were facing. even as we came out of the first quarter, we saw a deceleration both geographically as well as in key markets. we continue to see strong demand and respirators but we saw a slowdown in things like medical procedures and health care. we saw a slowdown in other areas like stationary and office-supply. that continues in q2. while we withdrew guidance, we are going to provide monthly updates in our business. in organic teens growth globally. that is true for the americas and india.

even a little stronger in the americas as we come through the first several weeks in april. that slowdown and some of the actions we are taking to manage our costs. >> we are now getting to the point where a lot of economies, and the president of the united states talking about it, france looking to reopen its economy as well. that process is starting to get underway. do we have the necessary ppe in place to allow this process to happen? visibility do you have about the availability of ppe for people to start going about their business. what can you tell us about what supplies look like and which areas seem most prepared?

>> we have seen unprecedented demand for ppe. the respirators used by health-care workers and first responders on the first -- on the front line. we have been ramping up. we brought our surge capacity online. investedt of sars, we in surge capacity to be ready for crises that come along. the battle here is greater than anything we have seen. we will take the u.s. capacity from 30 million a month to 50 million a month by june. by the end of the year, to be able to produce almost 200 million respirators per month. for us, that is our focus. the demand in the near term is greater than our ability to produce, but we will make this

investment and, as an industry, ramp up as we go forward. economy will be the next aspect of that, something we talk about a lot in our company, how are we expecting to see that. i would say there is a lot of uncertainty about how that will play out. i do know that we will continue to work to double by the end of this year. >> you said on the call this morning that you will never raise prices during a pandemic. will you be able to keep your prices fixed? what about raw materials and the supply chain? toit is critical for us supply the health care workers and first responders. we have to manage the entire supply chain through our production and supply and

logistics as well. onhave had strong support raw materials. we have not seen raw materials price increase. materialse key raw are things that are not unrelated to oil and gas. refiningbyproducts of oil and gas products. we are seeing that stable. the outlook is that we can manage that. romaine: we were just listening to the ceo of 3m. talk about some of the earnings. alphabet reported first-quarter ,evenue rose more than expected 33.7 billion. the company, which does not issue forecasts coveted say that final months could be

critical. they said effectively the kind of expect something in little bit worse as far as ad spending. down 19%.nue was give acare, they did forecast. a little bit worse than what some folks had expected. i think you are taking a look at starbucks. scarlet: starbucks trading lower sales% after comparable in the second quarter fell 10%. forward is also down in after it seesading after second quarter ebit loss of just over $5 billion. romaine: we are going to talk a little about credit right now

and the fed's decision to jump into the high-yield debt market has been talked about a lot. lisa lee was on the byline of a great story on the terminal earlier today. the credit market whale is the federal reserve. >> yes, the federal reserve has become the biggest supporter of credit markets. 9 washey did on april such an aggressive move. in a way, sort of interesting. they in some ways are just dipping their toe in high-yield debt. but that was enough. they said they would buy some of the fallen angels, also buying uncertain levels, certain types of debt. that was not enough because the signaling effect was so

powerful. investors in the high-yield bond market, the risk asset classes, have taken that signal has the federal reserve willing to do anything to bail them out. two issuers in high-yield bond markets. berlet: the fed is going to buying the credit of recent fallen angels, but not everyone. nonetheless, when you look at what kind of credit is rallying, the fed has come in and said they will buy all high-yield. they are not really making that distinction right now, are they? lisa: they are not. they have decided, if they are doing this much, they will do more. the fed may never have to buy a single high-yield bond. what it has done is perhaps make it so that the bond market will

provide the liquidity that they never really had to. it could be a positive. what that produces is more hazardous, as we have discussed on tv and elsewhere, that the bond markets have been an area of real concern, even to the federal reserve, for producing leveragedvior, highly products. no covenant protections, to have documentation that can strip away collateral. at the end of the day, if things go bad, the federal reserve will step in. romaine: will have to leave it there. we are running out of time here. that is bloomberg finance reporter lisa lee. stay tuned. david rubenstein he has a

segment here, leadership live. he will interview the ceo of kargil. save hundreds on your wireless bill

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scarlet: after rising fears of a shortage, president trump is ordering u.s. meat plants to stay open during the pandemic. david rubenstein is speaking exclusively with one of the companies at the center of the meat supply. >> economic crisis right now. i always want to know, how are people that are leaders getting through this leadership crisis. we are fortunate to have a number of people willing to let me talk to them. today, we are very fortunate to have someone who has been in the middle of a food price -- food

maclennan.e cargill.he ceo of he has been the ceo for years now. he knows the food world extremely well. welcome to the show and thank you for coming on. largestgill is the privately owned company in the united states, is that right? dave: i believe that is correct, by sales. david: your primary business is food production, food distribution, food trading? food production, also food ingredients, things that go into prepared foods and other foods.

so, that is kind of in a nutshell what we do. david: how did you get into the food business? my first job out of college was in chicago. i got hooked on markets. seeing the traders on the floor, how supply and demand worked up close. i got my mba in finance. i joined at the financial arm of the cut -- of the company. as i got older and became more involved in my career at the company, i thought, this is a food company, not a financial company, so i started developing my career more on the food side. david: how many employees does cargill have around the world? dave: 160,000 employees.

it is probably close to 125 countries. this week, john tyson, the head of tyson foods, said that the food chain was maybe breaking down and we would have to close facility. are you worried that the food chain is breaking down? dave: i would characterize it as the food supply chain is under strain. there are a lot of supply chains under strain. certainly, there been food production facilities insert areas of the country that have had to close because of illness or supply disruption. the ability for us to produce food is still there. there will be momentary closings. momentary is not the right word. we had a facility that was but is now17 days

back up and running. i think the food industry is resilient, the people who work in it is resilient. david: in response to mr. tyson, i think, the president issued an executive order today saying that under the defense production act, he is going to command that food production companies stay in is this and make their workers go to work, assuming they have appropriate protection. are you aware of that executive order and do you think that is necessary to make sure you can produce the food you want in your facilities? dave: i am aware of it. i don't know the details. they will call it a question, keeping the american public fed, keeping food on the shelves, balancing the health needs, the concerns, and the emotional

health. plant have illnesses at a such that you can't run, you don't have a choice. vital functions in the plant that are ill and can't come to work, then you can't run the plant either. the industry has been able to run. supporthad tremendous from the usda with having inspectors on site. the health, physical safety of the workers, and the executive order. for people who don't understand exactly how meat is produced, it is produced in large facilities where people are working closely together. is the problem that you have to make certain that they will not get this virus?

how are you doing that and how will you do that under the executive order? dave: we have taken a lot of steps in the past few months. everyone at our facilities is temperature checked before they come in. if they show any signs or symptoms of covid, they are asked to leave and quarantine for 14 days. everyone has a face mask. no visitors are allowed in the plant. we have appropriate physical spacing in the lunch room. inre are a lot of people these facilities, brave and courageous people who come to work every day. there was a sign on one of our ,lants that someone had written that you are feeding 22 million people a day.

the amount of production out of one facility is substantial. presumably, the people of the united states are eating the same amount of food as before but they are eating indifferently and in different places. people -- having to, say, not produce as much food in certain areas because restaurants are not open or places like mcdonald's do not have as much traffic as they used to. dave: it has been a significant shift from food service to retail. all of the different categories have been significantly impacted by stay-at-home orders. that the impact of food service back to march 1 showed declines. there has been subtle increases

in the last three weeks. getting used to whether it is curbside, home delivery, take out, consumers are getting used to it and getting more comfortable. whether it is uber eats, doordash, one of the services. sometimes the restaurants are delivering themselves. the shift from food service to retail has been substantial. people eatingre the same amount of calories staying home versus going out? going to restaurants, portions are significant. larger ins tend to be food service. the nature of the way americans consume their food absolutely as

changed dramatically. read thathink i just the average person in the united states eats roughly five meals a week outside of their home historically. now it is just one or two. i guess you are cooking more at home. is it a different type of packaging you need, producing food for people eating at home versus restaurants? it is. you are selling more in smaller packaging when eating at home as opposed to mcdonald's or the restaurant. packages of bigs. -- of eggs. -- we had closed

our facility and we ramped up capacity in the past few weeks as we have seen demand coming back as i referred to. the packaging that you might buy at a restaurant called the , you are not going to see that in home cooking, obviously. david: at some point, these animals are going to be killed. theythe reports are that are being killed earlier than normal because there is not as much demand for their meat. pigs, there is not as much demand for pork as before. it is starting to show up. it is two pieces.

mentioned demands, i food service, people could not go out to eat, the demand for curbside delivery and pickup. indeed, demand has come down on the food service side. in minnesota, a report described a chicken farmer who raised chickens, and they had to euthanize over 25,000 chickens. on the component of pork and beef, i think more of that is about plants. nots technically demand but at the consumer level. it is the fact that plants have had to close to process beef and pork, so there is a backup in the supply chain. david: one phenomenon i have

been watching is the enormous amount of cars lined up for food in the united states at food banks or their equivalent. are you surprised there is so for people for food who cannot buy it at normal prices? david: i think what it is highlighting is that the people are the most vulnerable are the hardest hit. it is unaffordable or inexpensive. i think one of the things we are doing it many companies are doing, supporting food shelves, kind withdonations in meals. seeing, it does not surprise me, to be honest. david: in the food world, you are at the top. i presume you are doing reasonably well financially.

you have not had to disclose your earnings. can you say you are doing ok or it has impacted you financially? have we are private, so we released our earnings. we have the unusual circumstances just by virtue of runs june fiscal year 1 to may 31. we are basically in the middle of our fourth fiscal quarter. the first quarters world pre-covid. if you look at march 1 come to pick a date. certainlyrth quarter, a pickup in retail has been helpful but there is also been demand. i would say we are doing ok. david: when you look at the stocks, the stocks that have been hard-hit in the food area have been restaurants and things

like that. the ones that are doing well, packaged food products. , thatt a surprise to you he of them doing better than before? dave: it is not. people were eating away an average of five meals per week, now it is down to one or zero. our family is cooking at home. we are cooking at home more than we ever have. conagra, cambrils, people are buying packaged foods and shelfstable foods. in some cases, there has been examples of panic buying and forwarding where people don't know how long this will last. i think there is some accelerated demand. ,verall, people buying things

whether it is familiar brands, but it is a replacement. david: panic brian -- panic buying was prevalent a few weeks ago but it seems to be leveling off. is there going to be enough food for everyone? should i go out there and panic buy tonight? david: it will depend on where you are. it will depend on the proximity to where the food is produced and the demographics and buying profiles of the stores. there is enough in the system. you will see temporary shortages, like perfection is down. -- pork production is down. i went to my grocery store last night it the meat shelves were fully stocked. what was not there, still, two

of the paper. nothing,ups, there was people have been buying up shelfstable products. there is enough in the system. animal instincts kick in and people get afraid. whether it is the executive order, plants coming back online as people get healthy again, the food supply chain is resilient, as i mentioned. of cargill the ceo goes into a food store, does anyone run over to service you, or do you get any discounts? david: a few years ago, we make a turkey called honeysuckle white, i was checking out the turkeys. a guy came over and said, i know you are. i said, i was just checking out

the turkeys. i went in last night and i wore a mask. nobody recognized me. i was perfectly happy to do it that way. they: farmers, are losses?g are they going to go out of business, will there be bankruptcies among farmers? dave: i am very concerned about the farmer community. as you alluded to, work your way back on the supply chain. plants that go down because of illness or supply disruption, that means the livestock starts to back up. change theiru can diets and slow down the growth, so there is probably less euthanization. they are also eating products,

their feet is grown by the -- their feed is grown by the farmers. i am concerned about farmers. prices have been low for a long time. the good news is there is plenty of supply in the system, plenty of storage. but it means that prices are low. i think bankruptcies last year, sir sectors of the tag sector -- of the ag sector. david: should i invest in producers of food, wholesalers, retail, restaurants? what would you recommend? dave: i think the switch from

food service to retail, there will be some permanent level of shift. you can see different prognostications about how many restaurants will reopen? certainly, there are some that were small and will be unable to reopen. i think retailers will pick that up. themnk, i would call healthy ingredients or organic foods, things like probiotics, are going to increase in popularity. , ahave a product we make digestive supplement which has been shown to create greater health. i think those kind of things supplement their diet or at home cooking with, those will do well in the future. david: food trucks all over the

country, they seem to sell food to a lot of people. are you worried that they will go out of business? david: --dave: they are mobile restaurants. it is a form of at home eating, where food trucks can move around to locations as opposed to brick-and-mortar restaurants. be a lot is going to lower obviously with a food truck than with a restaurant. i think that should probably do pretty well in the future. david: you are mostly working out of your home but sometimes you go to your office. is it hard to manage this way because most of your employees are probably at home. how hard is it to manage in this matter? dave: i think we have all adapted pretty well to

communicating, whether it is on zoom, skype, or at home. i miss the face-to-face interaction. i saw a couple of people in the office today and it was almost startling to see other faces other than the ones you are sequestered with. i think part of our culture has been the social relationships developed over our company. could --ing i in today i am in today has capacity for over 2500 people. i don't know if we will ever see that number again. i think people will decide, i like working from home, i can be perfectly effective. but i think there will be some people who will want to continue to have a social interaction. theink that has been one of biggest takeaways.

technology has performed very well. david: the ones who want to stay at home in the future may not be the ones with small kids and dogs. but that is another matter. that some ceos say, i don't need as many ploys as i thought i did before. is that a prevalent view in the ceo community, that you can downsize in the future? minneapolis-st. paul is unique. we have 20 fortune 500 sized companies headquartered. there is a lot of conversation about physical distancing, when to do it. the state of minnesota, our stay-at-home order expires on may 4. i don't think there is any company here that will open the

doors and say, everybody come back. we are all thinking about how we do this kamal we have this,igent -- how we do how we have intelligent sequencing. i have not heard anyone in this community or any of the ceos i have been talking to saying -- i really hope that what has happened changes the e sosa of this country -- changes the ethos of this country into realizing the impact this has had on the most vulnerable, that are suffering the most, and that there is more a sense that -- the phrase that was being used prominently in the past year or two was responsible capitalism. i hope that we don't have to lay anyone off. is thinkingk anyone that way at this point in time.

david: under the trade agreement that the trip ministry should negotiated -- the trump administration negotiated with the chinese, the chinese were supposed to buy a lot of product. dave: certainly, their economy has slowed down, but we are up and running in china. i think the fact of the matter is, 1.4 billion people have to eat. thechinese depend of outside world, on trade, in order to feed their livestock or supply their animal protein for example, or other products. i do believe that they will be able to fulfill their commitments under the trade agreement that was cut. we are -- where better to turn than the united states? it is planting season in north

america. when harvest season comes in late summer and early fall, that is when you might expect to see bulk purchases of commodities going to china. david: where do you see weaknesses around the world? china and south korea, they have had some rebounds. i think southeast asia is probably still dealing with some of the issues. indonesia, philippines, singapore has gone back on quarantine with a spike up in illnesses. western europe is ahead of the curve in more ways than one. they got after it faster. well-publicized in places like germany. italy and spain are starting to come back online. i think south america is a mixed

bag. theably pretty similar to united states. so it is mixed. but when you have over 70 countries in the world like cargill does, it is a diverse portfolio. david: you are in the distribution business. when you distribute food around the world, are you doing it through trains, planes, trucks, boats? are those systems all working as well as they did before? dave: it is mostly rail, truck, barge, and ocean transportation. in any given time, there are about 550 ships on the ocean with a cargill product anytime. scarlet: that was leadership live with david rubenstein. that does it for "what'd you miss?"

bloomberg technology is next. this is bloomberg. ♪

♪ emily: welcome to "bloomberg technology." down,s ending the day dragged down in part by facebook, amazon, netflix, due in part to consumer confidence hitting the lowest levels in six years. alphabet shares up after hours as the company reported stronger-than-expected revenue. i just got off a call with the alphabet ceo. i will bring you