sectors like leisure, hospitality, and retail. that thet implies unemployment rate years for the rest of this and next year. which really is a scenario where the fed is going to be slow to raise interest rates again and will be willing to continue these long purchase programs and liquidity measures. so it makes sense to have short-term yields incredibly low. we still think that valuations are a little bit ahead of themselves here. romaine: we just heard the closing bells there. gabriela santos of j.p. morgan asset management. 500 finishingp

strongly in the green on the day. small caps up more than 3% on the day. the nasdaq composite yesterday erased all its losses for the year. now up about 1.7% on the year. gainers today, energy, industrial, and materials. basis, energy, tech, and a couple discretionary names here. we saw a pretty dramatic move on the short end of the u.s. treasury curve. traders still pricing in the prospect that we could hit negative rates in the u.s. it will be interesting to see if that materializes and what that would mean. scarlet: and just a follow-up on what you were pointing out with regards to the different sector performers, energy, the best

performer for the week. week for the major u.s. indexes. and the russell 2000 also doing better than good compared to its large-cap peers. let's bring back gabriella santos. one thing we should mention with energy stocks, we've seen oil prices now put together two weeks of gains. we haven't seen that since february. do you think we've seen the worst in oil, and if so, what does that mean for other asset classes? think, for oil, that is a month where we start to see the production cuts come into effect. and also when we are slowly beginning to reopen economies around the world.

it does make sense to see oil prices rebound. with that said, we are correct in our view that the reopening is going to be slow, including from the consumers like oil. there is a bit of a feeling for oil prices. we find it hard to imagine brent prices closing of $35 a barrel. is still a context where we want to be underweight. we want to be careful with the energy sector. especially in credit. alreadywhere we have started to see defaults in the energy space within high-yield. there is one silver lining, this idea of very low oil prices,

which is that inflation is going to stay low. romaine: i want to go back for a second. you mentioned high-yield and the credit space in general. are there any signs we should be looking for that would maybe give us a little bit of insight into potentially how permanent this rally can be? i think it is really interesting to see what happened in credit markets. april, we had about $23 billion in default within the high-yield space. if we look at where that was concentrated, energy and retail, and within the investment-grade space, that was the month where we had the biggest amount of downgrades ever.

were in these sectors of energy and retail and leisure and hospitality. i think we are seeing stress in those sectors. over theng to remain next six months. weis nice to see a day where have those sectors rallying. we just asked ourselves whether that is sustainable for much longer. go to the want to global market for a moment. how do you want to be positioned in asia, europe, and e.m.? stock is an extremely defensive market, and an equity market that has representation in sectors that are winning here. but one thing that we've been highlighting is that it is not just the u.s. that we should focus on.

even if you have a more cyclical time horizon, it is also emerging asia. where welso an index have high representation of players thatuge are also gaining in this lastly, i don't think it is a foregone conclusion that the united states comes out of this reopening phase the best. a lot ofhere are arguments for countries in asia being much better prepared to have a more sustainable reopening phase. markets, the u.s. is still a preferred market, but so is emerging asia. santos, thankella you so much for your time. have a great weekend. that does it for the closing bell. "what'd you miss?" is up next, where we look at the covid-19

impact on real estate. i'm trying to convince romain to move to the suburbs. this is bloomberg. ♪

romaine: broadcasting live from new york, i am romaine bostick alongside scarlet fu. this is "what'd you miss?" aarlet: let's get you snapshot of u.s. stocks. we had gains in all three major indexes. everything closed at session highs. the backdrop for all this was

some devastating jobs numbers. the u.s. unemployment rate tripled in april to 14.7%. the harshest downturn for american workers in history. >> they actually understate how bad the situation is. scarlet: i think we might be -- >> some of this looks to be temporary layoffs. maybe about three quarters of it. if you look at who is getting hit the hardest, it is the people that can least afford it. reduction in losses in participation among minorities was particularly large. the job before us now is to make them so. romaine: that was a snapshot of

some of the voices we've heard today. we talk a lot about the market moves. so many millions of people now are without a job. the question is, when will those people get back on the payroll? frances donald is chief economist and head of microstrategy, joining us now. when you look at the numbers that we got this morning, and you look at the data over the past few weeks, showing the absolute devastation in this market, what do the numbers tell us about the potential for most of these jobs to be recouped at some point in the near future? is the most important question, the 70% of those who said they were unemployed for temporary reasons going to turn out to be temporarily laid off,

and how quickly could they get rehired? we have to watch nontraditional data points. there is a little bit of a silver lining. it looks like most of the economy, the worst of it probably ended around mid april. that doesn't mean the economy is going to start re-accelerating now. what i am concerned about is that we are heading into a period where the duration of unemployment has been longer and longer. has an almost circular development. you stop spending as much and you see further reduction in activity. all those whoire say they were temporarily laid off, will those individuals go back to spending?

that is the bigger question. what you described is a vicious cycle. one thing that bothers me is that a lot of the pain is not spread evenly. shock isr today, the really aimed at the working class. dramatically lower impact on college graduates who are able to work from home. women were hit harder than men. black and hispanic workers hit harder than white workers. what does that mean for the recovery ahead? it took a while for minority workers to see employment. they were the first to see some of the pain as the economy soured. >> i think you are highlighting what is in some ways the most

shocking, just how uneven they are. how they are targeting the most vulnerable workers. this is unlike every major recession we've seen. typically recessions are caused by manufacturing. this is women. if you look at a chart of unemployment rates between men and women going back to the waitingthis time, it is who have the higher unemployment rate. this means that our policy responses have to be different. we have to make sure that those who have been laid off are not being given the same treatment they have been in past recessions. childcare is one of the most important pillars to restart the economy. this is an entirely different type of recession. it can't be treated the same way

as 2008 or other historical recessions. there is a lot of folks at bloomberg who have crunched the numbers. they've put a lot of great charts. when you break it down by industry, some of the percentage declines were pretty staggering. in transportation. 58% drop in clothing and retail companies. 52% drop in personal services. when you look at those industries, it seems like some of those are industries that may not step back. some of these industries may be the last ones to fully reopen. is it possible that we may have to grapple with the idea that some of those jobs may be gone? >> that is what we have to

contend with. that is going to be difficult not just for those who lost their jobs, but for the stock market. critically, we need to recognize it is going to be incredibly uneven by sector. we are going to reopen services based economies and whether or not those come back online depends on people's ability and willingness to use the economy. if households aren't feeling safe enough to go out, or maybe they have had a hit to their income, they aren't going to use the economy when it is back online. we are watching how individuals tell us how likely they are to use the economy. people want to see the evolution virus before they head

back out. focus on the duration of unemployment. virus before they head back out. focus on the duration of unemployment. the longer people are unemployed, the more frustrated they get, the more policy support they need. when a lot of the extra income is weighing out, we are going to see a lot of people get very nervous. before covid-19, we were looking at the jobs report as the average hourly earnings report. what we did see in april were wage gains. 7.9% jump year-over-year. amazon and walmart did raise wages for some workers. what is your read on whether this is temporary or sustainable? >> this average hourly earnings number is one of these data points that essentially loses its meaning.

let go of the lower income earners within our economy, so the average hourly is looking better on the surface. person, they are not getting 4.7% more. this is just a reflection of the fact that that lower income opponent has dropped out. the income inequality that already existed, the covid-19 shock really disproportionately hurting our lower income workers. in this case, it creates a little bit of a problem and makes the data points less readable. romaine: we only have a little bit of time left. i'm curious how you take today's data and read through to the next reads on things like gdp and other markers for this economy.

what are you looking at? our focus is on the economic data points that are going to drive assets going forward. a -- whatt seem like is going to drive this market forward. these data points are consistent with a double-digit decline in gdp. it is incredibly reasonable. on theket is focused risk of a second wave of covid. rate see that unemployment moving higher? q4focus is where are we in and q1 of next year. we appreciate your time.

global chief economist and head of microstrategy. what do we have coming up here? let's take a look. i think -- scarlet: joe weisenthal. we've got joe coming up. this is bloomberg. ♪

romaine: welcome back. i'm romaine bostick alongside scarlet fu. let's get you a quick check of the latest headlines. we are going to start with apple.

apple is going to start reopening some u.s. retail stores next week. today it issaying going to implement safety procedures including temperature checks, social distancing, and face coverings for customers and employees. apple recently reopened locations in south korea, austria, and australia. j.p. morgan chase has increased its bet on single-family homes. the parties expanded the joint million.o $625 uplow is prepared to fire business now that americans are spending more time than ever at home. robust search activity shows that house hunters are undeterred by the economic

uncertainty. and that is your business flash update. this is kind of interesting. zillow has started to get this home flipping business off the ground. there was a lot of investor backlash. there's a lot of questions as to how profitable it could be. now it looks like they are going to give this ago. virtuallyefinitely you can look at different properties online. still trying to convince you of the benefits of moving out of the city and into the suburbs. weisenthaltime, joe left the city. he's going out to austin texas. he joins us now. you've been looking at the jobs data. it was devastating as expected.

joe: exactly right. that is one of the extraordinary things investors have been able to overlook. out,hing that really stood we've been waiting years for wage growth. we got this extraordinary wage growth number, but only because devastation in the layoffs was so concentrated among the lower service industry workers. we've been able to fill that hole somewhat through the expanded unemployment insurance and so on. when theens if and layoffs climbed the income ladder and unemployment insurance doesn't do a good job of making people whole, then what happens to gdp?

a lot of people are starting to talk about what is the trajectory of wage growth. there's been some anecdotal evidence that some people are but it isump in pay, not clear how widespread that is going to be. there are anecdotes about some people getting a bump in pay, but many people getting pay cuts. now, just hold onto jobs. preserve employment. tothat people have a place come back to work when the crisis lifts. is fiscale big story action has helped us so far, but does it help if the layoffs expand into more areas of the economy? scarlet: and we are also not

getting clean reads. the march numbers were revised down by a lot. that just puts the idea of a v-shaped recovery more out of reach. 80% of themaybe layoffs were identified as temporary. that still means that a fifth of them aren't temporary. that is millions of jobs that we already are not describing as temporary. joe weisenthal, he is one third of this program. i think i'm 10% of this program. scarlet is the other 60%. i'm glad you wore a sport coat today. hopefully we will see you in a tie one day. as the lockdown begins its third full month, a growing number of

lawsuits are popping up around the country. that is coming up next. ♪

welcome back. a battle brewing in u.s. courts, as a growing number of business owners have filed lawsuits claiming that restrictions aimed at preventing the spread of coronavirus violated their rights. judges aren't necessarily deferring to those requests. joining us is mark, professor of law at harvard law school. thanks for being here. when we talk about this fight between businesses who maybe think they were unfairly forced to shut down, and the government's authority to impose shutdowns, who do you think has a better leg to stand on?

>> in most of the cases that i've run across, the government typically has a much stronger case. the general national constitutional rule is that if the governor or state -- if there are any plausible public health reasons for it, the constitution is satisfied. a legal and there is precedent, isn't there? a supreme court decision. explain to us what that decision entails. is called jacobson versus massachusetts. a quarantine order imposed on businesses. the supreme court upheld the order, saying that when the government asked to promote public health, it has very broad

aboutde to make choices what closures to require, what conditions should be continuing operations and the like. earlier today we heard from mike pence and he was discussing the impact of the coronavirus and basically said churches should reopen and folks should go back to their congregations. fornder about the potential some religious exemption. we've seen the heads of some religious buildings push back on these government restrictions, saying they should be exempted. >> there are two problems that can arise with religious institutions.

one problem arises in some places where the government says we are going to allow essential businesses to operate under appropriate precautions. but it doesn't include religious services. the pastors have a pretty strong case for saying they should be allowed to conduct services. under the same conditions that businesses are allowed to operate. ,ocial distancing requirements and churches can hold services, but only with social distancing requirements. whereher situation is one churches are allowed to open, but they don't want to adhere to the kinds of conditions of other

activities. barbershop, you have to have social distancing, but the churches say, we want our people to be close together. they are entitled to conduct their services under public health restrictions, and if the state doesn't allow them to do that, then they should win. but if they don't want to comply with the restrictions, they don't have a very strong case. scarlet: context is everything. the judges are upholding the governor's orders. at what point does the economic crisis overtake the public health crisis in importance? from a national constitutional point of view, basically never.

the governor has authority from the state legislature and acts in a broadly reasonable manner, it will basically never be the case. as a federal constitutional matter. governorsslatures and will take economic concerns into allow open.eciding how long from a constitutional point of view, that is basically entirely up to them. scarlet: got it. professor, thank you so much. really interesting conversation there. we want to turn our attention now to first word news. mark: president trump says he's

in no rush for congress to pass more stimulus measures to help the economy. commentsdent made the during a meeting with house republicans. the meeting came hours after the labor department announced that 20.5 million jobs were lost in april. the president signed a 2.2 trillion dollar stimulus into law in late march. mr. says that vice president pence's secretary has tested positive for coronavirus. she's the second person working in the executive residence to contract the virus this week. six staffers have been tested and are negative. an administration official tells us that miller has not had direct contact with president trump, but she is married to one of mr. trump's closest aides, stephen miller. scientists are taking a closer look at children suffering from covid-19.

while infections of those under 18 compose a small portion of the worldwide total, they still number in the thousands. reports inalso been the u.s., u.k., and europe of a mysterious condition among children. spain is reporting more than 1000 cases in the past 24 hours, the biggest increase in nearly a week. the country is in the first phase of a plan to relax its lockdown. 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. ♪

earlier this month, we boost demand for disinfectants and cleaning products. the chairman and ceo says output the company continues to add capacity. he spoke exclusively with our ed hammond earlier. >> we have increased our staffing. people hired about 250 since this pandemic started. is inggest thing for us the disinfecting space, where we are seeing the unprecedented demand for disinfecting products and strong demand for other essential products that people enjoy. priority continues to be

getting products to health care facilities. out about 40%g more volume compared to pre-pandemic times. we will continue to add capacity. onere bringing in additional external manufacturer , helping us provide consumers. disinfecting products like hand sanitizer and toilet roll, which has come back to meet the increased demand, your cfo was talking about, you put stuff in the shops and it is sold out within 30 minutes. how do you get to a position where you are able to meet that demand? >> we have sped up our

production line. -- theres by simply are going to be fewer changeovers at our plants. have a series of relationships with companies we cushion manufacturers to add to our capacity. in anstarted to invest increased long-term capacity. we have made strategic investments to add another production line, increase capacity, which will help over the next 12 to 18 months, to be prepared for what we think is going to be a significant increase. what are the retailers telling clorox in terms of what they are expecting?

are the retailers expecting this to last through the summer? conversations the we have at this point is about currency demands. i think it is fair to say that many retailers see that this consumer engagement is going to be higher for the foreseeable future. we are beginning to have conversations with retailers on how we can plan for that. people we can also have go back to retail stores, whether that is physical stores, how we can have the right assortment, the right shelving, to meet those future demands.

expect heightened engagement with retailers and expect the ability to supply the increase in demand in significantly improved ways. romaine: we were just listening to the ceo of clorox. everything about cleaning products has been in the news as of late. the only thing new yorkers love to talk about more is real estate. a little bit of a new normal here. , she is real estate chairman and ceo. allstate is one of the largest brokerages in new york. she is joining us now to talk about what the market will look like. let's start off with what is ,appening in the here and now

specifically with the ability of companies to market homes in this environment. it is extremely difficult. and had theof momentum from last fall of one of our most vibrant markets. buyers were ready to go. interest rates couldn't be better. then we went on instant pause and had to close all 32 offices. we literally could not work. pipelinely we have a and the pipeline, clothing. lots of delays, lots of issues, but these are buyers that wanted to own homes, so that is happening. done evening deals though we are closed.

some, we are starting to see some that are absolutely virtual . is a challenge. still a lot of fear and we haven't even opened up. my offices will remain closed until the foreseeable future. there are things happening. scarlet: there's a push to get out of the city, to get to some places with more space. a little mores insight into that? what price point are we talking about? are these initially rentals that have the chance to turn into purchases? >> a little bit of all. in first wave was back

march. we knew we were in the epicenter. especially families, but anyone that could move out of the city easily, either a second home, summerhouse, they could go there. they could rent upstate. that was really fear-based. now we are seeing a second wave. that is more lifestyle. in smalle living quarters in new york. ,ometimes it is parents work inonals trying to space in new york that they didn't plan to buy or rent them. peopleseeing a lot of

needing the space, the feeling of being able to go outside. we are seeing lots of people looking to initially rent in the hamptons or connecticut or new jersey, but a lot of people looking to buy as well. it is a lifestyle change. sometimes a family that would toe put it off, not wanting be away from the children, now saying, we will work some of our time virtually, so we don't feel so disconnected. i am curious., you've worked in this business for a long time. we've gone through other periods where the housing market has

been affected. particularly here in new york. 9/11, there was a lot of gloom and doom about new york and urban centers in general. the effects of this are going to be more lasting than before? 9/11 and that was a fear of new york. there were a lot of people that left. but a lot of those people came back. they didn't think about the lifestyle. they left because of the fear. now the second wave is lifestyle decisions. them are renting, especially the ones that were not sure of that lifestyle

commitment. they are renting to see if it does work. but it may last. this is something that i think will always stay in the back of our minds. fear,e got over the 9/11 it sort of went away. linger,hink is going to to have lasting impact on our psyche. scarlet: great to get your perspective. diane ramirez. looks like romaine might just need to consider leaving the city for the lifestyle reasons that diane just indicated. romaine: if you have a guesthouse, let me know. scarlet: from new york, this is bloomberg. ♪

scarlet: jewel labs is set to

cut its internal valuation by 35% to $13 billion. this is days after the company outlined plans to cut about a third of its workforce. that story is available on the bloomberg. with most movie theaters across the nation still closed, alamo draft house is making some changes. it is launching its curated video service. spearheading the launch is tamely, founder and executive chairman of alamo draft house. explain how this service works and how it is different from romaine being able to look up parasite on the amazon prime and watching it that way. sure.rlet: -- >> this is a function of our community theater. the way it differentiates itself from the other options is, this is a 100% curated platform.

teamody on the programming has to love it for it to end up here. the idea started from this concept that, if we are playing parasite in theaters, once it leaves theaters, there's folks that haven't yet seen it, so this gives us an opportunity to continue that dialogue with our guests in the streaming window. me some sense of the business model. are these movies that you have the rights to, or did you go out and get the licenses to them specifically for this project? >> it is a bit of both. have a bit of a library of films that we have the rights to, but the majority of the content comes from other studios

, from the big studios and directly fromand filmmakers as well. we've licensed out nonexclusive rights. a title that is scarlet would love? [laughter] >> a title that you guys would love? well, right when the theater shut down, there was a movie, one of my favorite movies of the year, portrait of a lady on fire. it was in theaters. now it is available on the platform. that isperiod romance staggeringly beautiful. don't know your taste. i did see the trailer for that and i thought it was interesting. do you think we are going to get more instances like going

straight to video options as opposed to being released in movie theaters? that did pretty well for the at-home audience. i think it all depends on how long folks are at home. be settled won't until there's a vaccine and we return to normalcy. that onceonfident normalcy does return, that people are going to be ready to get out of the house and be together and watch movies in movie theaters. no matter what happens, i'm not going to read into that as the sky is falling. cinemafirm believer in and that when we are past the coronavirus, we are going to love to be together. thank you so much.

tim is executive chairman and founder of alamo draft house. that does it for "what'd you miss?" romaine, are you going to check out truax's world tour from your couch? romaine: maybe. going to have to check it out. scarlet: from new york, this is bloomberg. ♪

emily: welcome to "bloomberg technology." , sheltering ing place in san francisco. markets up across the board. still, 20 million americans lost in april. 33 million have lost their jobs in just the last seven weeks. still, president trump saying he's in no hurry to