tuesday. . we opened at a rally at 213 on the s&p 500. this erased all of it is trading below that level now. the dow down about 1%. small-cap indices, the russell 2000 down approximately 2%. some strength in the nasdaq 2000 for the above first time. apple at a record high. caroline: performance year-to-date, we are up almost 11% on the nasdaq. we are not higher on the s&p 500. back about 0.75% to every word that previous time. volumes pretty healthy when you look at the nasdaq. about 20% higher than average. let's get back out to taylor riggs.

taylor: even though we mentioned a little bit of a pullback today, the -- take a look at this chart i am showing inside my terminal. s&phe top, the percent of 500 members trading above the average. the highest on record. at the bottom of the screen, the percent with rsi over 70. the highest since 1991. the general tone continues to be a slow grind higher. 500 toive inside the s&p some individual movers. macy's has opened 450 stores, but that is not enough to give investors optimism. suspendedy company their dividends and said they will not reopen at least 150 of their stores. we move up into some of the luxury names. sales off 52%.

they will keep north american stores shut until july 15. along with jp morgan, the financials mentioned earlier, selling pressure today, facinglarly the consumer banks. short positions are back. this is data as of last week. futures seeing the biggest net short positions since 2015. this is interesting because last week, the put to call ratio was the lowest ever. people were either hedging with options or thinking options were not the way to play it. it makes you wonder whether it is something more. beh this market, that may the bears are back. caroline: people starting to assess the valuations we have

hit, the record runs. no matter -- no wonder you are now starting to see. it still reminds you of the woeful state of the u.s. economy and global economy. when you have the world bank warning us this will be the worst recession since world war ii. amaine: don't forget, relatively critical fed meeting at the moment. you are seeing buying in gold, buying and treasury. it does give you some sense that ab folks are trying to hedge their bets to get a little more clarity over what comes out of monetary policy. david, when you look ahead to tomorrow, the announcement, the news conference, what are you expecting. david: the fed has done a great , driving a significant rally

in credit spreads and equities during the course of that process. tomorrow, i am looking to powell to put up some bands, some porters around what the fed will do going forward. the qe story has been one of they will do whatever they need to do, unlimited purchases, so on and so forth. i would expect powell will begin to telegraph that they have either chosen a monthly cadence topic ofhat is a conversation the effort for. there will come a time when the fed looks at the economy and says, we are not sure that the patient needs to be on life support anymore. also hashat powell seen how the market works and how it has responded to this

stimulus. he wants to avoid the potential downside. i think that this is going to involve into a highly linguistic experiment and the fed will increasingly use the rhetoric to try to manage markets. they established all of these facilities, the alphabet soup of the downturn. the fed has yet to buy a single individual corporate bond. they have bought some etf's but both of those credit facilities remain relatively unused. the credit spread, it is apparent how powerful a central banker's spoken word can be. caroline: jp morgan asset management global market strategist, david lebovitz, thank you for your time. "what'd you miss?" is up next where we will be talking about the protests with stephen baker. this is bloomberg.

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♪ caroline: from bloomberg world headquarters in new york, i am caroline hyde. romaine: this is what you missed. caroline: down day for the s&p and dow jones. we lower on the year. the nasdaq 11% higher for the year. apple its further highs. the protests continue on and democrats in washington look to create concrete legal changes in response to nationwide restrictions for racial justice

and police brutality. jobs plummet in april, reminding us of the poor economic picture. taylor, you have got a look at the all important fed decision. taylor: i specifically picked a chart that was still messing. it highlights how much the fed has jumped into this market. $7 trillion balance sheet. thanks to them, they have also pushed up stocks to almost 40% since the market bottomed out. all is well, right? not particularly. our next guest, tim julie -- tim dewey, joins us from the university of oregon. enough?fed not done fx i think the fiscal -- tim: i

think the fiscal stimulus is important to creating income in the second half of this year. we do not want to dropped off too quickly so they have to create a fiscal cliff and respond to it with a new set of tools. to account for the possibility. stimulus, wefiscal heard from mick mulvaney a little bit earlier, it is going -- with regards to what powell and company can do further here, is there any ability that they have in their proverbial toolbox to provide an economic floor, not necessarily an asset price floor or financial market floor, but a floor for the economy that could

provide a springboard to the economy. >> this is a very interesting question. certainly, we think the fed has or capacity in the toolkit. managing the short-term path of interest rates. -- talk about yield curve control. things, the question for us, to what extent those will be effective. a situation right now where we are kind of still struggling with the aftermath of the pandemic. the economy really has not got its feet under it right now. in that zone, i am not sure that the fed can really push on levers in the short-term that can do a lot in the economy. theye longer term, i think

have more to work with. i think it is going to happen that the federal government is going to come through them policy. caroline: how important does that become if we do see a second wave? are you concerned about that? because the market seems to be ignoring it. tim: i am concerned about a second wave. one of the issues -- one of the reasons the market might be ignoring this is i think the lockdowns as we saw are probably behind us. i am not confident that we will lockdownle nationwide again. we will probably see more targeted approaches to whatever the second wave is. i think it is clear what is going on is that the economy has to learn and grow its way around the virus at this point. another reason why we one that

fiscal support in the background. duy, great to gain perspective. bloomberg columnist and university of oregon professor. coming up next, some of the policy choices next there -- choices out there to address police violence. steven pinker will have some thoughts. this is bloomberg. ♪ mberg. ♪

>> what you saw over four weeks from mid march to mid april, the fed added to balance sheet to trillion dollars. to $7lion to $4 trillion

trillion. i think what comes out of tomorrow is they will slow down the pace to about $100 billion per month, coming down from $2 trillion per month. the markets have done their job by normalizing. fixedquidity of that has the liquidity in the system. tomorrow, we will get more violence. -- more guidance. of course, you conduct about the yield curve. the commentsost of will be around the fundamentals in addition to monetary policy. the fundamentals is really all about jobs and gdp. >> we have had a bunch of programs aiming to help companies and may be your job for you in some ways. the default right now is about 4%. what happens next? do we get another leg lower?

do we get more fallen angels? >> that is a good question. when we spoke last comedy high-yield market was 12%, now 6%. $50 billion coming into markets like mutual funds, etf's, and others. record inflows. with that, the markets feel a lot that her. below that market and below the surface are these undercurrents you are talking about. though the markets are somewhat healed now, the real economy is not. there are a lot of problems brewing. what do we expect with default rates? what we have recorded at earth on, since mid-march, 60 bankruptcies in the united states totaling about $100 billion. $400ink that will grow to billion. 18% cumulative, which takes you

to an annual default rate of about 10. before this is all over, the cumulative rate, four times the 4.5% we have already seen, 18%. --it relates to downgrades downgrades are coming ferociously. close to 30 downgrades for every upgrade by moody's, s&p, and rating agencies. that 20, 30 to one ratio is so much greater than what we saw in the financial crisis. in terms of fallen angels, there has been about $200 billion. not quite, about $185 billion thus far. investment grade, we think that number grows to $400 billion as this plays out over the next year, year and a half. what is really ailing in these

companies is really revenue and ebitda. markets should improve because the liquidity gap has been healed in a very big way. trillion gdp.$21 to fed has added $3 trillion its balance sheet. a $21 trillion gdp. if you think about it that way, that is 28%. >> on the bankruptcies for a second, will that be the liabilities on the balance sheet or what will that be? >> in aggregate, we think it is the $400 billion. it is currently $100 billion. we think it is a fourfold increase from here. romaine: we were just listening to bruce richards, speaking a little bit earlier on bloomberg tv. we want to turn to the events of

the past six months, from the return of the covid-19 crisis to the latest social unrest in the u.s. our next guest has researched and written extensively about the progress in society and tug-of-war's that sometimes threaten our advancement. steven pinker joining us now. great to have you here on this program. we have been spending time over the past few weeks talking about what some looked at as i guess unmitigated risk in our society. at the same time, you have a financial market and even folks in the real economy seeing unprecedented opportunity. when you start to square the circle between some of the optimism and pessimism out there, what is the thread that keeps it altogether? >> our perception of the world if it is driven by news is bound to be overly pessimistic.

news is a nonrandom sample of the worst things taking place over the entire planet on any given day. it is inherently biased toward the negative, not only because we all have a lurid fascination with the negative. the journalistic cliche, if it bleeds, it leads. but also, if you are covering something that happens suddenly, it is biased toward the negative. bad things can happen quickly. it is easy to destroy something. that could be a shooting, a war, a terror attack. good things either consist of nothing happening, or things that built up a few percentage points at a time and can compound, but fall below the radar of journalism. there is never a thursday in october where the whole world gets richer. we tend to underestimate

progress. i think people tend to maybe not understand why progress has taken place. they often think, if it occurs at all, it is some kind of magical escalator that makes everything better and better automatically. it could not be that. that would be magic. instead, it is people solving problems. and problems are inevitable. endemic's can always happen. but, over time, we get that are in better at solving the problems that we do phase. course bad that of news can happen quickly. can progress happen quickly? for years, we have seen little to no progress when it comes to the inequality in the united states. we are seeing a very slow burn in terms of what is the pandemic. can we see, from negativity, optimism? protests in the

streets, the art that is felt in terms of the negative news flow and horrendous death of george floyd? steven: sometimes, it requires being more of a -- more aid oriented, more statistics oriented, seeing graphs that you extreme poverty has plunged over the last 30 years worldwide, that more and more people can afford the necessities and luxuries of life. unfortunately, they tend not to happen suddenly enough to make a headline. occasionally, something good happens very quickly. perhaps the fall of the berlin wall. the proof of the efficacy and safety of the polio vaccine in the 1960's. -- in the 1950's. let's say, if there was a breakthrough for covid, that

could start -- that could count as a sudden good thing. but there often tend to be reforms and improvements whose payoff only comes gradually. so we are apt to miss. a lot of people don't know that the clean air and clean water act of 1970 has led to a 60% reduction in the rate of pollution in the united states. it took years. other social programs have led to a huge reduction in poverty among the elderly. even that black poverty has declined steadily since the 1960's, although it is still shockingly high but much better than it used to be. that racism is in decline. again, it does not happen on a friday in february. it creeps up. that is why i have argued that to understand the world you can't let your impressions just be driven by headlines.

because you will get a nonrandom sample of the worst things that take place. anecdotally, there is no doubt about it. anyone who is alive today can look to what their parents went through work their grandparents and sort of dry line from their struggles to where they are today, which is definitely on a much better platform. when we look at the theories out there, the theories you put forth in your book like the blank slate, one of my colleagues, john authers, gave me a book a while ago, which talks about this general idea of thinking a little more optimistically. this idea that progress does come in increments. but there is also this idea that how people feel at the end of the day does end up having a tremendous impact on how they live and what their general status is.

how do you bridge that gap between may be what they should be thinking and what the realities are for them? i try to tell a story with graphs. roseland more effectively than i did. he called his book fact fullness. generally, you do not want to be optimistic in the sense of just expecting things work out. identify -- ao robust public health infrastructure, the best science . pandemics, he warned about. he died a couple of years before the current pandemic, but he was not so optimistic to say that this can't happen. quite the contrary.

was snappedt ebola out before it became a global pandemic. general aren killing fewer and fewer kids every year. so, progress is possible but it is not inevitable. it only takes place if we are good scientists, good humanitarians. caroline: professor stephen pinker, i wish we had more time. coming up, the future of fitness. virtual workouts are booming as a result of the pandemic but will it out last quarantine? this is bloomberg. ♪

caroline: the pandemic has forced many people to change their daily routines, including how they work out, which led to a boom in virtual exercising. well, real exercising, but virtually done. will it be the future of fitness? let's ask nate forster, ceo of neou, a fitness platform with some incredible statistics. 100-plus studios and trainers. 1900-plus workout classes. i have loved working out at home. the competition between my husband and i is real.

but when i speak to colleagues here, they can't wait to get and workoutreal gym routine. how will you ensure that the retention rate is remaining high? nate: i think it is a key point in looking at the future of that old fitness and how we work together with the big brick and mortar business. i think we actually work well. what you will see is a lot of these brick-and-mortar businesses want more of the ability to consider -- to munich it with the consumer. when things start to open back up and the consumer becomes confident and it is a positive experience for them to get back in the gym, they probably won't want to go every day. if they were going four days a week, now they will probably just want to go two or three days a week. what has happened with covid-19 is people have realized they can

get a real workout at home. these big-box gyms realize they need to have a digital presence. digital and brick-and-mortar will work well together. it will help people supplement their fitness and fit more wellness into their life. romaine: is the idea here that you will try to bring in more fitness folks to lead different classes, or is the idea that it all sort of gets created out of ?our own wheelhouse nate: we are a true marketplace. we are helping thousands of trainers, gym owners have a digital business and connect them to the consumer. the way that we do that currently is we do shoot all the content in new york city. we have 20,000 square feet on 5th avenue. what happens in the studio, the

programming, the brand, the ip, that is there. but the quality of the content, the production, we handle all of that to make sure the consumer has a great experience. risk thats the real some of those folks creating the content can just leave, go to another platform, youtube or a social media platforms, and may beget the same sort of traction from their customer base? nate: absolutely. we have seen through covid-19 that using zoom, instagram life, even youtube was more apparent. it was an easy tool. we know that when gyms open back up, a lot of the consumers are going to go back into the brick and mortar. before covid-19, digital at home fitness was growing tremendously. on zoom, onappening

instagram life, because those user experiences are not great. you are not really creating that community aspect. neou that brings consumers together, gives great quality, allows us to separate ourselves from the zoom. we do know that the consumer wants great quality content and a great user experience to stick around. they may do that content class once or twice but that can get boring, difficult to filter, how do i know if i have a good instructor or bad instructor. with neou, you know what you will get is really good. we are really curating the content and making sure the experience is good. caroline: what is the most popular ones being downloaded at the moment? nate: i think boot camp will always be one of the most popular. it is that high intensity

training. you get some lifting in, get your heart rate up, and you have a lot of fun. we do see dance being popular. even things like toning and sculpting. when covid-19 hit, we saw a lot more people staying at home and working on. finder great point that we in digital fitness is that people like different things. the consumer loves to do a yoga class, boot camp class, then a dance class. get like to jump around and these different experiences. we have all these different options, so we know the consumer is looking for that. romaine: like to keep it mixed up. great to talk to you. neou is the name of the company. the ceo nate forster, thank you for your time. it's get to the first word news. mark: funeral services are being held today in houston, texas for

george floyd, the african-american man whose death while in police custody in minnesota sparked a worldwide of men against racism and police brutality. houston mayor sylvester turner announced he will sign an executive order that banned chokehold's in his city. the sheriff of the county that includes houston said that his county will implement a new duty to report policy for deputies anduse audits of tasers body cameras. today wase eulogizing texas democratic congressman al green. he said that george floyd was not expendable. >> we are going to make sure that those who look through time will know that he made a difference in his time because he changed not only this country, he changed the world. george floyd change the world. mark: european union's top

diplomat says the death of george floyd was the result of an abuse of power and that the 27 nation bloc was shocked by it. he said that, like the people of the united states, we are shocked and appalled by the death of george floyd. the new york stock exchange went silent for eight and its, 46 seconds today. a top world health organization official is walking back her comments that transmission of coronavirus -- that a symptom medic transmission of -- that a symptomatic transmission of covid-19 is very rare. she said she was just answering a question, not stating who policy. the comments on monday revived controversy over how the virus spreads.

a new study finds that we could see more food shortages in the united states. the environmental working group says at least 60 food processing facilities have seen outbreaks with more than 1000 workers infected. dozens of meatpacking workers have died. to virus is spreading processing plants outside the meat industry. derry workers are at risk for the infection. 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. this is bloomberg. caroline: coming up, a green future? stimulus recovery plans being proposed around the world but how greener they? this is bloomberg. ♪

>> three and a half, is that ok? >> sure. >> i can't comment on pricing. what we are thrilled about and theled quite frankly,

enthusiasm, throughout the roadshow itself, it is humbling because it wants it -- it makes us want to work even harder to deliver for our customers and shareholders. we are humbled and happy with the outcome. romaine: what is the general business model. , otherlook at vroom sites like carfax, car vona, they seem to offer at its core the same service. paul: vroom is an innovative e-commerce platform. we built a best in class e-commerce platform next away best in class vehicle operations platform. stitched together on a data science and experimentation platform. what that means for customers, broad selection of cars at

transparent prices delivered to their driveways. now, more important than ever, in a contact freeway. -- contact free way. in a seller, they can load their license plate order vin, get a real-time offer, say yes, dispatch for the car. customers are really leaning in. 150%, nearly 160% in e-commerce revenue in the first quarter. now, since covid, we think there is a tailwind. caroline: let's talk about that change and what the coronavirus -- it must offer a silver lining two. talk to us about how rampant you

see demands. and how you sustain it once people can get back into a showroom? paul: we believe it is a structural change. 40 million units annually. yet it only has between less than 1%. consumers do not want to go back out into the public, back into the traditional dealership model. from the comfort of their own home, they can reach into their own pocket, pull out their phone, do everything you can do in a dealership financing, vehicle warranty extension, have a car delivered. what we have seen, since the global pandemic, is that customers now are significantly more likely to buy a car online. data suggests it has doubled. the market is coming our way and we have a really nice tailwind.

preferencee consumer for potentially avoiding the dealer, that makes sense. what is the trendline you are seeing with regards to overall demand. prior to covid-19, we saw a lot of data that seemed to suggest that car sales growth seems to have plateaued. looking to other forms of transportation other than owning their own vehicle. there were moments in early march when we saw a demand decline. moreas people were doing under orders, we saw demand pick back up into our business. because we are incredibly agile, we were able to move through inventory, sell that inventory at a profit, and come out on the other side of this market and be buyers in an increased price market. that is good news for vroom and vroom customers.

again, high interest in the model. and we think that is structural. romaine: the ceo of vroom speaking earlier on bloomberg. governments worldwide have committed $12 trillion to coronavirus recovery. taylor: bloomberg green has launched its first magazine issue, a quarterly collection of stories focusing on business, science, and technology all surrounding climate change. the governments of the world's 50 largest economies, as you can see in the chart, have committed nearly $12 trillion to the coronavirus recovery. billion only about $18 has been targeted as post-carbon economic priorities like developing clean energy or incentivizing clean industries. has set aside the most

money. julian, what did you find out about the intersection of green money and the pandemic money? >> our opening essay in the entire issue is by mike bloomberg. he puts it very simply, that this is not a choice anymore. moving ahead toward post-carbon priorities and fixing the economy. they both answer the same question, which is at we recover from the economic shock of the coronavirus? in our story about stimulus in our first issue, we report on the findings of a survey conducted by some oxford economists, showing that central bankers, economists, finance ministers around the world overwhelmingly favor climate friendly priorities for our

economic recovery. isoline: so basically, this an economic argument. this is not just about the environment, this is about money, right here, right now. the lack of support for pro climate changes from the administration and the u.s., compared to the likes of germany , for example, where they are supporting it from an administration point of view. >> i would not be the person to say whether the u.s. is doing itself a disservice. but when you look at the factors that make investment in climate friendly policies good stimulus, you are looking at huge economic multipliers, huge job creation, and things that are very, very fast. ,ou can employ people quickly

we have a massive solar industry that was built up in large part due to stimulus from our last financial crisis. there was huge investment in the solar industry which made that one of the fastest growing industries in the u.s. whether congress is doing the usa disservice is i think for someone else to say, but it certainly would be a service to the u.s. u.s. citizens, and those finding themselves without a job, to invest in green industries. romaine: you have a lot of great voices in here like nicholas stern at the london school of economics. i wonder, the folks who either wrote for this piece or were quoted in this issue, is there general consensus that the will is there and still there in the midst of this covid-19 crisis,

in the midst of this recession, to continue down this path that seemed to be going well prior to the crisis we ended up in? theian: that is really political question. europe has been at the forefront of this. climatethe eu pushing measures. this was done after we went to press. but germany pushed forward a major slate of clement priorities for its economic -- of climate priorities for its economic recovery. china has said they want to work toward their china goals -- the claimant goals. but we have seen a push toward coal power as an easy means of providing electricity to people. the u.s. has lagged behind that. even in the stimulus bill passed by the house, no climate

priorities. that was a bill that was written by democrats with the understanding that the republican-controlled senate was never going to pass it. measurethis symbolic also contained no money from climate change, which is quite striking. your data is striking, the issue is striking rate go get it, you can get it now. check out the magazine online and across the bloomberg platform. coming up, recession or road to recovery. -- what it means for the future. joe weisenthal, you know he loves data. this is bloomberg. ♪

four welcome back. you are watching "what'd you miss?" joining us right now, joe

weisenthal, just finishing up live in workout, austin, texas. joe: and continuing to watch the labor market. we got the jeweled report. job openings, labor turnover. it is for april. one thing i would like to look at is the rate, a measure of -- the quit rate a measure of how people confident they are in the labor market. if you quit your job, your probably confident. basically the lowest reading since the financial crisis. --d of gives you a sense of granted, it is april, it is also kind of obvious, but more evidence that the labor market really fell off a cliff.

taylor: jeff is running the deadline total return bond fund. he is saying that the fed broke the law by buying high-yield bonds. to idea what he is referring if that is true? i some people saying this at the time in late march and early april, arguing that the fed was not allowed to take on credit risk or intervene in markets directly. i also saw a lot of people saying that that is not the case, that the fed has an obligation of being the lender of last resort and there is broad discretion to do this. fed had gonee beyond its remit. kind of the thing you expect some people to say every time the fed does something extraordinary. this is something we have talked about a lot on the show.

warning about that further waive of white-collar unemployment. then something we saw in the jobs report last friday. even as service workers are coming back, the longer-term higher paid unemployment continuing to creep fire. affectedhat has not this market in obvious ways but it is something we have to pay attention to. caroline: joe, thanks so much. eyecourse, got to keep an on what superman, i.e. the fed, will be bringing us tomorrow. romaine: all eyes on the fed special, you don't want to miss that. i guess really the big question is what more can the fed do now that will encourage investors? caroline: hold onto that thought. we will be with you after the fed special. that is all for "what'd you miss?"

technology"omberg is next. romaine: this is bloomberg. ♪ you doing okay?

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