russell 500. the performer on the day here is the nasdaq, gaining more than 1%. they make a cap tech story continues here. the strong kind of keep getting stronger. groups,4 industry decliners include banks and consumer services. disney one of the big decliners as well, turning around in trading before the company reports second-quarter earnings. it is going to be hit pretty hard with the exception of disney plus. disney pretty much closing the day down after starting off on a high note. romaine: a lot of focus on those earnings. a lot of companies finding some sort of benefit here with the stay-at-home or work from home environment.

one of those names we saw was wayfair, of 24%. today alone, of something like 700%. there is a lot of analyst chatter that some countries like wayfair will see lasting gains from this boost they have been getting. another name also up 7%. saying the gains in this environment could actually end up lasting. one name that we are keeping an arts,, ea, electronic their earnings crossing the wire. the q4 numbers, revenue revenue slightly above the 1.42.te of any sort of insight that they

can give us into how the world will look for a company like electronic arts. scarlet: if any company could benefit, it would be something like electronic arts. ,till with us is olivia engel cio of active quantitative equities at state street global advisors. there is a note out by ubs today, saying that cash on the sidelines has grown to about $4.7 trillion, of nearly a trillion -- up nearly a trillion. do you see any kind of rush to the exits? do you see anybody cashing out, waiting for the right time to enter? if so, what do you think this money is waiting for? >> we are a global firm. we have clients in different

locations of all different sizes. the response has really varied. withve seen some clients large amounts and sticking to developed markets. we have seen some exit out of equity substantially and really go to cash. we have seen some who have invested more and more as the markets went down. i think there is a real good mix andontrarian investors investors going i guess with the overall trend of the negative period. that we areview is pretty much more optimistic than the consensus as to how the economy globally will go through the crisis and come out of it, with 2020 consisting of a gradual healing of the economies andhe back end of the year

a pretty strong rebound we are seeing in 2021. we do still have good exposure to risky assets. high-yieldunities in and investment-grade fixed income. scarlet: some other earnings have crossed, including pinterest, the digital bulletin board reporting a first quarter loss per share of $.25. negative print of $.25 loss per share. revenue for the first quarter $271.9ed year on year to million. there was an adjusted ebit dollar loss in the first quarter loss in the first quarter, still an improvement from a year ago. pinterest, like so many other companies, not providing any kind of guidance for 2020. i guess there had been optimism

that a come -- that a company like pinterest could do better in this kind of situation. still, when it comes to advertising, it always comes back to the fact that companies do not have the kind of budgets they had before and they are very cash conscious. romaine: pinterest at its heart is pretty much reliant on ad dollars. that will be a big part of that narrative going forward. disney, i believe those are crossing the wire right now. scarlet: adjusted eps second-quarter, $.60. the analyst average estimate was $.86. so many parts of its empire are under pressure. is the movie studio, espn and cable networks. it is better than what analysts had been looking for, but those

estimates have been all over the place. , consumerrter, parks experiences, these are the parts that got hit because disney world and disneyland got shut down. -- revenue was 5.5 point 5.54 billion dollars. operating income for that business was $639 million. overall revenue remained $18.1 million. analysts were looking for something in the neighborhood of $17.7 billion. slightly better than expected on the top line but on the bottom line, certainly a big miss. romaine: beyond meet out with earnings. two headlines to read you. the company did say that it saw to foodion in sales service customers. the company of course also

suspending its full-year forecast. we will dive a little bit deeper into that later. bring youe want to another company that also is reporting earnings. activision, full-year outlook, activision blizzard seeing full-year adjusted revenue of $6.9 billion. it previously anticipated revenue for the full year of $6.73 billion. clearly, a lot of people flocking to its product. let me go back to disney. espn plus subscribers, 7.9 million. total hulu subscribers, 32.1 million, an increase from the previous quarter as well. i don't see a number from disney plus but that is something hopefully we will be getting on the earnings conference call. romaine: we will dive into those

numbers a little bit later into the hour. i apologize to our guest, we had to cut her short because of the earnings outlook. we appreciate you being here. that is the senior managing director of state street advisors. that does it for "the closing bell." "what'd you miss?" is up next. this is bloomberg. ♪

♪ romaine: broadcasting live from

new york to our viewers worldwide, i am romaine bostick. this is "what'd you miss?" scarlet: we saw a gain in u.s. stocks overall but we did see indexes pare some of the advance. tensions with china certainly top of mind for investors. economies around the world and around the u.s. are slowly reopening. at the same time, we are getting more results out of companies, anecdotal evidence about how the pandemic is affecting them. let's start with disney. from theme parks to leave dashed movie studios, to espn. missing the consensus estimate of $.86. revenue overall higher-than-expected. disney has quantify the impact on itsd-19 as $1 billion parks business and up to $1.4

billion on continuing operations pretax. pinterest has skipped is full-year forecast even as it reported a jump in revenue and user growth. clearly, a lot more people are engaging with the digital bulletin board. it does not change the fact that companies do not have as much cash to spend and they are pulling back on spending as well. romaine: two videogame companies going in opposite directions. electronic arts down in after hours trading. revenue did come in slightly above estimates. activision moving in the opposite direction, up about 5%. the company raising its full-year outlooks, not only maintaining, but raising it here. tousted revenue up from 6.7

6.79 billion. the main headline, activision is raising its revenue outlook for the year. scarlet: we will continue to keep an eye on all the earnings that cross. i want to go back to one of the themes, the rise in tensions between the u.s. and china. president trump of course taking an aggressive stance toward beijing and promising conclusive evidence on the chinese origins of the coronavirus. lovely,us, very professor of economics at --acuse university it syracuse university. it is great to speak with you. i guess what i want to start with, why now? why are both washington and beijing ratcheting up tensions? orit for domestic audiences is it to send a signal to each

other? y: we are seeing a ratcheting up on both sides. the stakes are very high. for china, the rest of the world is worried about the handling of the endemic early. for the united states, it has been the failure to act promptly when we knew that the virus was there. and then, of course, to adequately fight the virus once it arrived. in both cases, each country has a lot at stake for its domestic audience. but also, for the world, thinking about who will lead. there is a feeling that both have failed in leadership roles. romaine: we talk about the relations between the u.s. and china, which obviously were not great for covid-19. there was some hope that we

might be on a path to something resembling normalized relations. is all hope lost for that right now? mary: it definitely seems like we might be on a different path. it was a world where we maintain very high tariffs on each other. the united states still has tariffs on two thirds of its imports from china, average tariffs of about 19, 20%. china, similar rate of tariffs on our goods. nonetheless, there was a big sigh of relief from markets and people around the world that at least the chill was there but the hot rhetoric was over. it looked like the trade war had settled down. now we see that this piece is

this peaceere are -- is lasting a very short period. we have seen more attempts by the trump administration to push a technology decoupling with china. over the long-term, one has to think that this particular type of low level conflict will persist. i hope that it won't turn into something more active or more dangerous. back to i want to go that idea that the u.s. is blaming china for the spread of the coronavirus. the world health organization responding to the claim that the outbreak began in a lab who on. anye have not received specific data or evidence from the u.s. government relating to the purported origin of the virus. from our perspective, this

remains speculative. like any evidence-based organization, we would be very willing to receive any information as to the origin of the virus. the origin of the virus is a very important piece of health information. scarlet: we do know that china was not fast when it came to informing the rest of the world about the virus. i want to contrast that with what taiwan did. taiwan has been successfully covid-19, much fewer deaths than i must say, new york state, which has a similar population number. taiwan, its global profile is therefore on the rise and it is seen as a beneficiary. how much will china let that happen and how much will taiwan become a sticking point between the u.s. and china?

mary: china will only let taiwan's profile move so far, as we have seen with the who. again, back to the united states, it is, where is the united states going to be on this? is fixated the u.s. on basically sending unsubstantiated stories about where this virus began rather than waiting for the scientific community and the investigation to proceed, it becomes harder for other states to rally around this. romaine: we will have to leave it there. mary, we appreciate you taking the time to speak with us. professor of economics at syracuse university maxwell school of citizenship and public affairs. next, we will break down the

disney earnings that have just been crossing the wire. plus.parks, disney this is bloomberg. ♪

>> one of the products that has been announced in the category called ai for i.t.. outages for i.t. because the -- cost the industry. but, if you react after the fact, that cost is still there. what can go wrong and fix it before it happens. are really,thing we

really excited about in addition to the other hybrid cloud technology we are also bringing out. >> those of us working from home that experience some of the glitches are eager to have those corrected. when will that product be available and will it redeem some of the problems we have when our system goes down? >> that product comes out now. people can start purchasing it now for deployment in this quarter. that is a great, great. if you look at ai and its impact on covid, when i look at medical research in india, i look at governor services in poland, hospitals in the united states, and these examples go across dozens of countries. we can all begin to use intelligent ai assistants to

triage out a lot of the information people are looking for. parents who are anxious about their children can interact with .i assistants you can take calls out of the medical professionals hands, to allow them to focus on more serious cases. this is serious enough that you should actually have a person interact. i think these are examples to justhow ai can go, not that we would like our infrastructure to stay up all the time, but also in terms of helping our citizens, government, and medical professionals be able to help everyone deal with covid-19. importante a very point, mentioning different countries where this could be applied. at the same time, even before were someic, there

countries trying to draw some borders. are you concerned or do you see any indications that the pandemic problems may increase the resistance to flows of information across borders? quince i will start with my perspective. of course, economies and nations will always try to advantage themselves. when we step back, both global trade and the free flow of data have shown that the entire economy, the global economy gets better and everyone benefits. people think about a win-lose. cans a win-win if you increase the size of the pie for everyone. that should come with regulations, with protections around ip, but the free flow of goods and data unlocks the potential of this for everyone. in this pandemic, i am

encouraged that people are cooperating more, taking advantage of computing capabilities everywhere. signsare some positive amongst all of the emotions. the ceo of ibmas speaking with david westin. disney shares moving higher in after-hours trading after the company reported second quarter profit that plunged by more than half as various businesses were hit the pandemic and the lockdown. sweeney, bring in paul bloomberg radio cohost and a former analyst on disney. when you look at the different businesses, the different results, what catches your attention first? ask a lot of the main core businesses of disney were impacted significantly, most

notably, as we expected, the parks businesses. they estimate the hit from the virus just in the quarter was over a billion dollars. really hit hard as parks were forced to close. film,if you look at the entertainment business, most movie theaters around the world are closed. film and television production has ground to a halt. one bright spot that continues to be in the company's favor is the streaming business. plus,ood growth in disney espn plus, and hulu. the big three streaming platforms, kind of the silverlining of forcing people to stay home, they are streaming more media, and that is a good thing for disney. romaine: the espn plus numbers

doubling year-over-year. , disneyresting thing actually broke down the numbers revenue it has got in from each of those streaming services on a sort of average revenue per subscriber. it was relatively low for disney plus. paul: there was a lot of promotion going on when they launched this product. the question, can they get a lot of these functional -- promotional subscribers into paying subscribers. that will drive their average revenue per user higher. the pricing for disney plus, a discount for many of the competitors. that was indicative for companies really wanting to go for orchid share initially. -- for market share initially. romaine: paul sweeney, the host of bloomberg surveillance on bloomberg radio. stay tuned to bloomberg

television. today at 5:30 eastern time, h-share -- an interview with the ceo spotify technology. this is bloomberg. ♪

scarlet: it is likely to be a slow recovery to the global economy as a result of covid-19. lawrence boone spoke earlier today about the response she has seen to the crisis. >> it is clear we are entering into some kind of phase two after this economic episode. across theonfinement globe. now, we are seeing many countries reopening. but, i would warned that this is going to be very gradual, with some activity that will not reopen for a long time.

you may think about restaurants, accommodation, travel, airlines. it is going to be very slow and not the bounceback to where we were before. >> the stimulus measures we have seen thus far, how helpful have they been? could they have been better? a proactiven response from governments. they supported business liquidity needs, guaranteed credit, so they have done the maximum i think that they could do in this phase one of the pandemic and the economic shock that goes with it. enter aare going to more difficult phase where support has to become more targeted for the reallocation of peoplend capital, so

that have been sleeping for a long time into a sector where there are labor shortages. we also should have entrepreneurs that restructure where they have to restructure, start a business. >> despite all of those actions taken by governments and central banks, are you concerned about permanent scarring to the global economy? if so, what are the scars that you think of? >> i think that is a very good question. -- close in social relationships. accommodation, and so on. thealso travel, because

pandemic is everywhere. if you want to move freely across countries, it needs to be controlled in every part of the globe. these aspects will likely be for a long time. the other thing, we will see in those set there's where life will be changed, employment will drop, there will be losses in debt. for all of these, we need prompt action. especially because this can happen in emerging market economies, which is unique in the history of economic crisis. you were listening to the chief economist at oecd. let's look at where we stand with the business flash headlines. pfizer has started u.s. trials of its experimental coronavirus vaccine. they have been working with regulators to speed up times.

this time, looking at both safety and the immune system response from those experimental shocks. marathon petroleum took a $12.4 million charge in the first quarter, reflecting the coronavirus pandemic. the company cutting spending by about 30%. finally, there was a famous commercial for wendy's that asked competitors where's the beef? now, beef items are in short supply in some locations. one analyst said that 18% of wendy's restaurants were out of beef last night. that is your business flash update. beef, i speaking of know you were talking about beyond meat' is earnings a little bit earlier. even though the revenue number was better than expected for the quarter that ended, shares falling in after-hours trading. i guess this also goes to some

bad timing in terms of strategy, where the company really focused on restaurants, perhaps shifting away from retail and toward grocery stores. romaine: that was a big part of the strategy. we spoke to ethan brown when they went public last year. this was a key part of the strategy. you start off and restaurants, then they want to buy it in the store and cook it at home. they are losing a big part of their revenue stream with no real sign of widespread reopening. it will be interesting to see how they adjust to this new post covid-19 world. shares still up here in after-hours trading. we will be back in a moment. this is bloomberg. ♪

scarlet: we are seeing disney shares bounce around as conference calls begin. reporting second quarter adjusted eps, missing the consensus estimate by $.16. thee parks, espn, also movie business all getting it. disney saying that the impact from covid-19 works out to about a billion dollars on its parks and experiences business.

romaine: the coronavirus pandemic, how it is affecting supply chains. our next guest has a pretty tremendous view of what is going on with regards to these supply chains. the ceo and chairman of a big firm that has a lot of warehouses, logistics as well. with what you are theng with regards to supply chain. >> obviously, the u.s. supply chain was unprepared for a shock of this scale. it took a while for the supply chain to be able to react. been impressed by companies being able to keep operations going so that we have not had disruption of supplies

in a few categories. by and large, the industry has done a good job of responding to a hundred year storm. butlet: no interruptions surely there have been changes and adaptations. how do you see the goods flowing through warehouses changing as a thelt of the endemic -- of pandemic? hamid: i really think of the effect as immediate. aftermath,te actually increase in demand from e-commerce players that pretty much had to lease every square inch of space to meet the surging demand. grocers,e players, medical supply companies, etc..

on the other hand, as we went along, there were other categories that were not doing well like brick and mortar retail, the hospitality business, etc.. inentory started piling up their warehouses. on the slow end, demand as well. our leasing volumes for the last month, month and a half, have been ahead of the same period last year. medium-term, once that surges over, i think we would have pulled up demand by a couple of quarters. then you will see the effect of firms that are not doing well coming through. toexpect demand this year decline from about 250 million square feet to about 100 million

square feet. long term, i think this bodes very well for demand for logistics. i think we have learned the lesson that designing the supply chains for maximum efficiency means that we have to sacrifice resilience. i think people will build slightly less efficient and more resilient supply chains with places alongmore the way. think you see a little bit more holding of inventory than what would normally happen. the amazons in the world, fedex, curious as to whether there is a competitiveness here for new competitors, who did not see much of a need for your services

that right now might be reevaluating their online presence and logistics presence, thinking maybe this is a service that will benefit us down the road. we are a provider of the real estate, not the service. your point still holds. it was happening anyway. it has been happening for the last 10 or 15 years. were not inple that the normal demographics of online shopping have been forced to explore online shopping. share ishe shift in just going to accelerate. were 1.5 to 2% online. now they are in the teens. i think basically a lot of the

trends that were in place before, including the shift to e-commerce, will get accelerated by this shock. they would have happened anyway, it just would have taken longer. scarlet: i like what you set about choosing between resilience and efficiency. what is the cost of that shift? what does it mean for expenses and therefore roof margins? -- growth margins? hamid: you have to have more of your capital invested in a sickly things that are sitting around, so that is not super efficient. if you think about all the lost margins because of the disruption in supply chain, the shortages that you see, the margin loss in missing those sales overwhelms the slightly increased inventory.

of course, it is a case-by-case analysis. significant negative than paying more inventory costs. scarlet: thank you for joining us and giving us a glimpse into your business and how it is responding to the crisis. this is bloomberg. ♪

romaine: the u.s. senate is back in session after a month away. the big order of business, the next response to the covid-19 pandemic. our chief washington correspondent kevin cirilli is standing by right now with a key player in the center of that debate. by senatorre joined marsha blackburn, a republican from tennessee. legislationroduced

that takes direct aim at the communist party of china. what would it do? would empower: we american citizens that have been impacted by covid-19 to be able to sue the chinese communist party in u.s. court. there is a law, the foreign sovereign immunities act, and we would place covid-19 as a biological agent in that act so that people would have a form of recourse, a way to seek compensation for the damages done. used beforehas been by the 9/11 families. it was used by families impacted by the beirut bombings. itin: in order to classify

as a biological -- essentially to classify it biologically, when you need more intelligence, more investigations into what beijing new, when they knew it. how do you have that investigation when china has denied any malicious attempt by this and has refused to allow international investigators into china to investigate? sen. blackburn: you are correct that china has refused to allow the scientists into the wuhan lab of virology. that china has lied. xi said that he had known for several days. they allowed people to fly wuhan but world from

they would not let them fly to different parts of china. we know that they were fully aware of the infectious nature of this virus. thisse of this, we can use legislation to allow u.s. citizens to seek damages. -- kevin: do you think this is something that president trump would get behind? sen. blackburn: we have used this before with 9/11, beirut. we have a group out of israel sovereignsed immunity. there are different components, different ways to do this. the president has spoken out several times about the need to hold china accountable. the other thing i would highlight is other countries, whether italy, france, spain,

they are considering ways that seek compensation or relief for this. a course, senator cotten has similar piece of legislation in mind. you also have the discussion of having china waive the right to payment on u.s. debt that they hold. there are others looking for other ways to hold them to account. several of us have bills that are focusing on a way forward, like my legislation that would ring pharmaceutical manufacturing back to the u.s., incentivize that. kevin: i have two more questions

for you. on the issue of big pharma, what is the appetite in congress to actually get that will that you have introduced passed? to make some of the drugs manufactured internationally more domestic and potentially have jobs in the u.s. as opposed to overseas. sen. blackburn: my legislation is joined by senator menendez at the lead democrat cosponsor. we feel that as we look forward ,o other pieces of legislation moving that manufacturing not only of pharmaceuticals but other potential components of our supply chain back to the u.s. this is something that democrats , healthblicans favor

ppe, electronics, made only inre china. grants,lion in organizations of higher learning that want to partner with pharmaceutical companies to look for advanced manufacturing concepts and platforms that enable us to quickly respond to form acute -- to pharmaceutical production as necessary. kevin: do you think that any of these policies you described could get past before election day of this year? sen. blackburn: i do. in bringingerest

manufacturing back to america. making america manufacturer again is something we hear. a lot of the rust belt states are very interested in this. be aare saying this may of to bring manufacturing pharmaceutical ingredients into their community to bring jobs that have been lost. forn: thank you very much diving into the weeds for us on policy. scarlet: i will pick it up from here. thank you so much, kevin cirilli. let's turn to mark crumpton for first word news. mark: the white house is considering disbanding president trump's coronavirus task force. vice president pence confirmed that to reporters today. he said the white house plans to transition the government's response to fema.

the vice president portrayed the task force as having accomplished its goal. he said, "we have slowed the spread, flatten the curve." the u.k. has the ranking of the most coronavirus deaths in europe. there are more than 29,000 confirmed deaths with thousands more expected. -- houses more suspected. boris johnson issued a lockdown at a later stage than other countries and abandon efforts to track and trace coronavirus in the community. a top official is expressing regret over the lack of early testing. the french president emmanuel macron is facing pushback over his plans to gradually reopen schools next week. more than 300 mayors in the capital region including the paris mayor urged macron to delay reopening of schools scheduled for next week. they called the timetable untenable and unrealistic.

global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm a mark crumpton. this is bloomberg. scarlet: thank you for that update. just want to let you know that the disney earnings conference call is still taking place. a headline that disney will opening shanghai disneyland on may 11. some of the disney theme parks getting back to some sense of normalcy. obviously, no word yet on when the u.s. parks will be reopening. that is something investors will be keeping an eye on. that does it for "what'd you miss?" this is bloomberg. ♪

♪ emily: welcome to "bloomberg technology." i am emily chang, currently sheltering in place in san francisco. markets ending in the positive territory for a second day despite cautious comments on the fed. more countries around the world taking small steps toward reopening. after hourss down after reporting second-quarter results. disney exposed on multiple fronts with theme parks closed around the world.