>> people should own what has worked for the past 10 years. people get excited with the disruption type of names. when you look at historical cycles, you have never had a time when that leadership continues into the next cycle. that isthe fact that where the leadership has changed, i think that plays along very closely with what you were just talking about in terms of market performance. romaine: we are speaking with dan suzuki. a very interesting day on wall street what do you make of it?

rising china-u.s. tensions rears its head again. indexes close with a little bit of a swoon toward the close. how are you thinking about china-u.s. tensions? is this something that kind of keeps us locked within volatility and range? dan: it certainly has the risk of derailing the rally. the thing with this rally, one of the drivers has been falling uncertainty. new, we did not know much about it, it was like flying in the dark. more optimism around the treatment and vaccines, that has been decreasing our uncertain. we have a sense of what the lockdowns look like, what the opening is looking like.

that it couldhink add to the volatility. romaine: uncertainty surrounding the upcoming election in the time, it is same hard to be bearish in an environment where most people assume the fed has set a floor under risk assets. it makes it hard to bet against this market. when you think about the concept of the put, it is not a new concept. it goes back at least to the greenspan era. that is where the fundamentals will fundamentally win out. there is only so much that the fed can do to offset weakening

fundamentals. if this gets worse, it is very likely the fundamentals will win out. the fed buying has actually been slowing, so the benefit has weekend. money, injects liquidity, but is that liquidity getting out there to the broader economy. you can question how efficiently that is being spread to the economy. scarlet: will get a jobs report, is it at the end of this week? next week. at the same time, a lot of people say this is backwards looking at priced in. at what point does it become apparent to the market, your tosis that if we go from 100 zero, then back to 80, but a lot

of businesses are not viable at 80, at one point do people start to make peace with that and reconcile that with share prices at the moment? dan: you are probably realistically looking at 2-3 jobs reports out where you are getting more of the information. one of the interesting things that comes out of the jobs report is where they report if they are permanent or temporary layoffs. i like to look at temp staffing trends as a bit of a leading indicator. i think the jobs report will have more in terms of the piece of that trajectory a couple of months back, especially on the of ppp.the expiration eight weeks, once that timeline is up, they have incentive to cut those employees off if they

are not at that high level capacity in their business. romaine: are you concerned about the carry through for consumer spending and some of the other metrics that have provided the impetus for the bull market we have come out of? absolutely. you see the increase in permanent layoffs, business closures. what people are not talking about is what it means to the cut in investment spending. right now, there is a short term view. technology has become a huge part of overall spending in the u.s. most businesses that you talk to will be cutting the spending budget. it is too early for that to float into the data but i think that is something to think about

as you move toward the third and fourth quarter this year. scarlet: until we get to that point, where you want to be in terms of sectors, in terms of regions? dan: you definitely want to have diversification, not all one or the other. the market has clearly been on a tear since late march. you can actually up your quality bet and still not perform and outperform -- still and participate in the rally. verylly, this is theroversial but i do think risk reward is very positive for china. they are treating it like a

40-plus percent discount and there is plenty of room for stimulus. scarlet: dances okie is deputy cio at richard bernstein advisors. that does it for "the closing bell." "what'd you miss?" is next when we will be looking for the prospect for ipo's in the market at large. this is bloomberg. ♪ ♪

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romaine: broadcasting live from new york to our viewers worldwide, i am romaine bostick alongside my cohost, scarlet fu. this is why did you miss. notlet: the s&p 500 did close above its 200 average. there during the trading day. the white house is considering sanctioning chinese individuals, companies, or institutions in a response to their plans to possess a national security law it hong kong. the worst of that the economic pain is behind us. is ipo's asopening well. we have seen warner group set

terms today for what could be a 1.8 dollars share sale. our next guest, kathleen smith from renaissance capital, and she joins us now for more insight. end have you seen on your when it comes to companies ready to go public? kathleen: we are seeing a large pickup in a cavity. that is because the returns on the already treated ipo's have been strong. etf,nage the ipo, renaissance ipo index. 14% sodex has increased far this year, well ahead of the s&p. the ipo performance has been very strong. when that happens, basically, these returns are the fuel that

drives the ipo issuance. we are seeing a rush of companies trying to tap the market, and some very big companies including warner music. romaine: i'm curious what you make of the idea here that a lot of companies, it is not so much about the performance or return out of the gate, but some of the market volatility. volatility seems to have subsided pretty substantially from where we were back in march. kathleen: the returns i mentioned are all returns after the first day of trading. these are truly aftermarket trading returns. it is true, the volatility has to be down as well. which hitat the vix, a huge level, 82 in mid-march,

is now down at about 28. ipo's, when they are priced, are priced with volatility in mind. it means that companies have to take an extra discount to account for that. ipo's come out of the gate, they will have businesses that are adaptable to the environment we are in, so we will see covid-friendly more digital companies that tend to be the bread and butter of the digital market -- of the ipo market. scarlet: a lot of that has to do with the work from home phenomenon. we spoke earlier with nelson griggs, president of the nasdaq stock exchange, and we got his outlook. >> we are starting to see new deals pop up. we have a november election. november, a for

the markets to hold, there is a chance we will have a healthy ipo market. scarlet: what do you want to talk about covid-friendly stocks or those work from home stocks, instacart,ordash, all unicorns people have been looking at to go public. when did these guys start coming to market? kathleen: we think we will see those companies come to market between now and the election. $2 billion a potential ipa from a company called royal pharma, a portfolio with $2ty interests billion in revenue. albertson's, the grocery stores have done very well and albertson's has been preparing

to do up to about a $2 billion ipo. i will add to those some companies that are moving forward, zoom info, a sales platform, fast-growing, very profitable. an online car platform. coffee is going to be the largest global ipo for 2020. it will be done in amsterdam. we are seeing large companies. the whole scenario is perfect. said, conditions have to stay, but we have been seeing these increased conditions over the past couple of months for ,ew, fast growing companies

indexes and etf to track those indexes. scarlet: a lot of big names to look ahead to. thank you so much, kathleen smith. great speaking with you. let's take a look at airline related companies. airline related economic troubles certainly persist in europe. we spoke with the ceo of ryanair, who plans to appeal a german bailout plan for lufthansa, saying it would distort the entire market. >> the european commission, they will also be speaking to the swiss government, austrian government, and belgian government, all to lufthansa group, who is running around europe gobbling up state aid like a drunken uncle at the end of a wedding. ryanair, we all

compete with live tensor in the german market. the tens is receiving enormous payroll support. they need another 9 billion, which they can't really justify. but it allows them to buy up more competitors. state aid subsidies. >> i want to point out that i got in touch with a live tons a spokesman and they said, we will not comment on mr. o'leary's statement. >> they won't even defend it. they are too embarrassed to be over enough all -- to be hoovering up all of these subsidies. >> are you reworking your plans for germany in light of this bailout. will you be getting out of germany completely?

>> we continue to compete with lufthansa. the difficulty for us and the other airlines, who are trying to compete in the german market, we don't receive state aid, we don't receive bailouts whenever something goes wrong, but it is grossly unfair that we now face competition over the next five or six years. with lufthansa trying to jump all over us. >> isn't there a tacit understanding that those rules are not seriously in existence to create a level playing field, level competition. this is not that kind of industry, otherwise you would italia, you al would not have a british airways and iberia.

countries need to have their national airlines for security, economic, and employment reasons. anyhey are not receiving you can government money. ryanair is the biggest airline in europe. we can survive through this pandemic. yes, we are receiving the same payroll support, but that is enough. we do not have to have multibillion subsidies showered upon us. i think there is a bigger issue. you have the german government bailing out the tons a, the -- sa, the dutchufthan government bailing out klm, and they are lecturing other companies, you all have to play by the rules. germans are rich,

55% of state aid. it is the german government who lectures every other european union member about complain with the rules. ity break the rules when suits them. people flying across europe in low-cost carriers. it is always late and expensive. romaine: you were listening to michael o'leary, the ceo of ryanair. some breaking nose. -- breaking news. the trading floor in chicago, they say they plan to reopen on june 8, so a little less than two weeks from now. of course, the new york stock

exchange today reopened its floor partially to physical traders for the first time in a few months as well. let's get a check on the latest business flash headlines. microsoft is trying to prove that minecraft is not a one hit wonder. a new version, minecraft dungeon, will be filled with slash and hack action. macy's selling bonds. forproceeds will be used all borrowers. last month, macy's was exploring ways to use its real estate to bolster liquidity. federal workers are concerned their bosses will force them back to the office without proper protection. toy say agencies approaches returning to offices have been a little but uneven. they have told many workers to plan on staying home.

that is your business flash update. scarlet: of course, we need to talk about what is going on here with china and the u.s. bloomberg is reporting that the white house is considering sanctions over china's consideration of the hong kong national security law. tell us what we have learned so far. >> what we know is that the treasury department could impose controls on transactions. businesses,cials, and financial institutions, for implementing the new national security law that is curtailing the rights and freedoms of hong

kong citizens. the trump administration is considering a range of sanctions but has not come to a decision to do that yet. romaine: duke at least have a sense of what options they have on the table? of directre a number sanctions they can announce from the treasury department. the white house could announce executive orders where they start to give hints and sick is that chinese authorities could signals thatnd chinese authorities could be targeted. there is one bill that wants to go much harder on china for this exact reason. so there is a lot of pressure from all parts of washington to take some action. by considering sanctions on chinese officials, it would at least be on people responsible for making the

decisions. there are also some reports that perhaps the white house wants to restrict chinese students and researchers from being able to come to the united states. saleha: it is unclear how much more they can lean into it. did say already that hong kong may not be a financial hub anymore. he is looking to really cripple them where it matters. institutions, businesses, officials, that would be a pretty loud and clear signal to china on how the trump administration feels about this. romaine: thanks. scarlet: all right.

once again, bloomberg reporting that washington, the white house in particular, is considering imposing sanctions on chinese officials, financial institutions, and chinese companies in response to the national security law they meant to impose on hong kong. that gets to how a lot of people were expecting the protest to reignite in hong kong. there is meant to be this mass protest for wednesday. a lot of the bankers and people who work in downtown hong kong now have to get right back into their home offices again. romaine: there was really a big move a while back to really try to tamp this down and encourage the chinese government to consider some sort of compromise. we will see if they speak out against this this time around. scarlet: coming up, we will talk

about oil. we will look at the global energy market with -- ♪

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tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. romaine: we saw oil rise today as opec producers displayed some signs of confidence that the market is stabilizing. for more on the energy market, we want to bring in brenda schaefer, georgetown university professor ford eurasian, russian, and eastern european studies. great to have you. always love to get your thoughts here. a month ago, we were looking at an oil market that was effectively being faced with an unprecedented drop in demand combined with an unprecedented supply of oil.

out?ll that been worked have we put all of that behind us given the increase in prices over the past month or so? >> i think to understand what has happened, we need to think of oil and the economic recovery postlike post-9/11 than recession. we did not have a downturn caused by economic forces. it was caused by policy. once these policies have changed, we have had the opportunity for demand to pick up. economic roadmaps post recession don't really work . whether it is the united states, the opec-plus agreement being

implemented even more than anticipated, production being knocked out in the united states, it looks like oil is recovering and will probably even search in the third and fourth quarters. scarlet: i suppose in terms of news on the supply side, today you had algeria and nigeria lifting the selling prices for their supply. how significant is that and what does it mean for their ability to continue to raise prices? we are seeing this in a variety of places where there is a discount. definitely a sense of confidence from the different producers. romaine: a lot of the dislocations we saw at least this year seem to stem from the breakdown of the relationship between saudi arabia and russia about who should cut, whether

they should both do it together. what is that relationship like today and are we at risk of seeing a disagreement in the near future with regards to these production levels? brenda: he saudi arabian and russian supply trend's really created the supply overhang, but the crisis in the oil prices is really about the demand side. essentially whatever would have happened in terms of production, when you had the level of demand knocked out in terms of the lockdown, it is hard to see oil going anywhere else other than down where it did. likeseems actually again saudi arabia, kuwait, uae, really taking higher cuts than they have committed to in the opec-plus agreement.

steps being taken within russia to make sure that the companies actually follow through with the commitments. scarlet: could you compare and contrast the demand for gasoline versus diesel fuel based on people's willingness to travel, how they are traveling, and what that means for producers and refiners in particular? >> a lot of people who write assessments about what the world will look like post-covid-19 are people lucky to have jobs like yourself, myself. but this will not be the major trend. jobs cannot adapt to working at home. there will be less demand for public transportation as people fear private -- fear public transportation.

more driving for people. one thing that should be watched is the demand for gasoline seems to be higher than the demand for diesel and jet fuel. those two sectors have not recovered at the same rate as gasoline. that is the trend of the oil prices, a very positive indicator for where the u.s. economy is going. one of the pressures we saw in the oil space pre-covid-19 was the move to electric cars, alternative fuel vehicles, as well as alternative fuel in other parts of our industries. do you see those picking up in a meaningful way that it would affect the trajectory or the outlook? brenda: probably not. unless we get into the area of higher oil prices.

but lower oil prices usually serve as a disincentive for non-oil-based cars and transportation. also, i think there is anticipation that, when oil was down to zero in the united states. that transition taken place. the fact that we had sort of an infrastructure glitch, a temporary mobility lockdown, it does not mean in any way that we have made a fundamental transition away from oil and fossil fuels. shaffer,brenda appreciate your insight. let's head over to karina mitchell and get the first word news. karina: the trump administration is considering a range of sanctions on chinese officials, businesses, and institutions

over efforts to correct down on hong kong. the treasury department could put holds on transactions and freeze assets. it would be in response to a new national security law that would curtail the rights of citizens. new target for coronavirus testing in the u.s. marks a new expansion that would have some states doubling, quadrupling, and for puerto rico, completing five times the amount of tests they did through april. a stronger federal role is required to solve issues like shortages of material. in italy, most of the people who died from the coronavirus were elderly and had other health problems. 96% oft finds more than those who died at other conditions. for a seventh consecutive day,

india has reported its biggest jump in virus cases. 140health ministry reported 5000 more infections, an increase from the day before. officials reported more than 4100 deaths. aseloads have been rising pandemic lockdown restrictions have eased. 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 karina mitchell. this is bloomberg. scarlet: thank you. a programming note. you will want to keep it to bloomberg television tomorrow. exclusivem., an interview with new york fed president john williams. this is bloomberg. ♪

scarlet: canada's largest life insurance company is giving employees an extended weekend next month. the ceo discussed this initiative as well as a timeline for the recovery of the insurance market. priority is the health and safety of our people. our people have done an amazing job to support each other and our customers. we have declared june 19 as the global thank you day. this day is designed to give people a chance to take a day off, relax. we have awarded all of our staff five additional personal days in 2021.

it is a function of the fact that we are seeing people effort in an incredible in incredible circumstances and we want to make sure there health and well-being is a top priority. ask what kind of claims of you getting related to the pandemic and what kind of claims are you getting that are not related to the pandemic? >> as we think about the crisis itself, there are really two orders of impact. the first is primarily around claims and sales. aroundond is revolving interest rates, currencies, equities, and so forth. today, we have not seen significant uptake in claims. we feel that we will be able to

navigate specifically when it comes to claims. still very early days and we want to keep a close eye on how this unfolds. quarterd see your first hit by the pandemic and the capital market disruptions. was there any learning in that in terms of how you were positioned in the market? would you look at it and say maybe you would structure things a little differently? >> one of the things we were focused on as we entered the crisis, was the focus of the last decade to de-risk our business. we put a lot of effort to ensure that we had a strong foundation in place. also, we foresaw this situation. over the last couple of years in particular, we took further steps to strengthen our balance sheet.

highlight, q1 results, we saw solid results given the circumstances. $1.3 billion. sales about 10% lower of last year. solid givens were the circumstances. having said all of that, i expect q2 will be very challenging, very tough. to 18 monthsext 12 will be challenging for our industry. i think the most important thing that organizations like ours need to be focused on is anticipating how this will be involved, making sure that we are prepared to navigate those different circumstances to deliver acceptable business outcomes.

>> what are the challenges that you are most directing -- most dreading? we don't know if there will be a second wave. will it be, that the first wave never went away, or will it be a reigniting of the pandemic? >> that is a great question. the biggest thing on my mind is healthy global economies will rebound and how long it will take to get back to pre-covid levels? we have seen the response be robust. we have seen central banks around the world take significant action to ensure that there is sufficient liquidity available. on that front, we have seen tremendous effort. point forte turning this pandemic will be the at scale deployment of a vaccine.

romaine: we were just listening to roy gori. let's get a quick check of the latest is news flash headlines. nasdaq sees improving prospects stocko's as long as markets hold up before the presidential election. ipo'schange has hosted 15 since mid march. six flags will begin reopening its theme parks in the u.s. on june 5. capacity will be limited, there will be temperature checks, mandatory face masks, and lots of physical distancing markers. out hbok, at&t rolls max. classic hbo program and plenty .f stuff from warner media still, there is a branding issue. at&t is trying to leverage an

upscale brand like hbo. time for smart charts. we will go to abigail doolittle where we will take a timely look at the charts with the street's top technicians. >> great to have you with us, katie. the last time we spoke, you were a little bit cautious. now, the technical signals seem to be going the other way. talk to us about your first sentiment chart. >> sentiment is pretty interesting. still quite bearish by a lot of measures. we tend to look at the spread or americanaaii, association of individual investors data, bears and bulls. that spread dips deeply into what we consider oversold territory. it is a contrarian bullish

reading. what he creates is an environment where, if you see the breakouts, that is prone to sort of a performance chase, meaning that investors feel underinvested when markets start going against them on the upside. yourt's now take a look at s&p 500 chart. this is a weekly chart. it looks like from a max d perspective, there is some momentum building that could zone.t some buy signal.d flip to a buy signal that wey had based on that measure was -- it does tend to give way to a couple of months of upside for the major indices. we had short-term momentum

positive from late march until about april or may. now it is becoming more intermediate term. with the breakouts last week, like the retracement level, it does support upside in the coming weeks. we have not yet seen the same from our monthly or longer-term gauges. >> i think we are having a little bit of a technical difficulty. your weekly chart did not pull up. to round it out, if we look at assets, we haden a guest to present today chart on treasury notes. notesea that treasury will start dropping back down. your 10ke a look at year yield chart with that 50 day moving average.

>> we have the 50 day moving average sort of in play for some of the treasury yields we follow. it is right around 0.7%. a couple of closes above that level would mark a short-term breakout in yield terms. behindlso actually treasury yields, so we have what i call a loss of downtown momentum. that does support additional stabilization and perhaps a grind higher with the next hurdle being around 1%. already, we are seeing some of other stocksks and that react favorably. >> certainly very interesting with your commentary, the weakness we have seen in the dollar, it may just suggest that stocks have an additional leg

higher. thank you so much for joining us for smart charts. scarlet: thank you so much. great conversation. starting at 7:00 a.m. eastern time every day, you want to join tom keene, jonathan ferro, and lisa abramowicz for more bloomberg surveillance. this is bloomberg. ♪ ♪

romaine: welcome back. joining us right now is the normal cohost of this program, joe weisenthal. we have a video of you this time, and you are wearing a sport coat. what are you watching today? joe: i was stunned. one of the most jarring data points, new home sales, and

analysts were looking for a decline of over 23%. nobody would have batted an eye. it actually rose in the month of april. obviously it is noisy and everything like that, but this is another one of these data points that is head scratching. it does not fit. takes analyzing the economy very difficult. there may have been people deciding they want to move out of cities. also perhaps that the layoffs have been concentrated among service workers who are largely renters. thinkeless, when you economic crisis and everyone has salestance, a lot of home --

scarlet: she said there might have been collection issues, people had to call others, so perhaps it was not the most accurate examples of data collection we have seen. thatng up this idea perhaps things are on the mend. joe: a lot of this data, you have to wonder the quality of it. itv, ak at an etf like possible -- a home construction etf, it is starting to look like a v. it is not a perfect v, not back up to previous highs, but investors are putting a lot of stock in this. of course, investors may get it wrong. but, nonetheless, it kind of looks like a v in housing. lots of things about this

crisis, not what you would expect. we'll have memories, scars of 2008-2009. this time, it has yet to been hit in a similar way. that goes for other data points such as prices. scarlet: it goes to show that every recession and crisis is hit by different laggards and leaders. looks like housing is in good shape this time, as our banks. joe weisenthal, good to see you again. thanks for putting on a jacket for us and a shirt with a collar. that does it for "what'd you miss?" "bloomberg technology" is next. this is bloomberg. ♪

♪ taylor: this is "bloomberg technology." the s&p 500 trying to close above 3000 but not quite aching it. said top administration be considering a range of sanctions on china over there effort to crack down on hong kong. markets mostly ending up in the green after this memorial day

highlighted the reopening of