they ride by hopes on stimulus and other things. the mark there on the new york stock exchange, which has been opening up to more people today. romaine: everyone is looking for signs of normalization in the economy. on a day like today where you see the small caps underperforming big-time, the russell 2,000 down about 8%. you see financials and materials, a lot of the names that were supposed to benefit from an upswing in the economy, the sentiment today swinging back. we talk about a lot of the names that some of the retail sides have piled into. hertz shares trading at $2 a share. you have nikola and others that people have piled into, and they are now arecessing those bets, taylor. taylor: it is a day where everyone is going back into the dollar.

we are getting out of equities and bonds. they are getting out of crude. they are all just going into dollar, the dollar being another safe haven here. caroline: certainly the dollar remains the haven of choice. it is interesting whether we are talking about an inflationary or deflation area cycle as sherry was pointing out. volumes have been very much on the thin side today, and people have been taking a step back on the risk on and risk off folk us. volumes in the s&p 500 remain. romaine: i am glad you brought up the volumes. that is something we should have talked about a bit more. the price action over the next couple of days may not be completely reflective of economic sentment, but it could cause a lot of problem for folks depending on the side of the trade you are on. caroline: let's take it back out to sherry paul now. sherry, the big expiration as

for the hearing from that coming up. volatility s of and you are saying to remain committed. the dollar remains stronger as taylor points out. is it too am bishes to go further afield? >> yes, i think so for a couple of reasons. just the way our monetary system work, the able of the fed to do whatever they went, whenever they want with however much they want to do it with. that is the stabilizing feature. that combined with the fiscal stimulus, the fed buying congress team to get their act together in terms of putting money in the pockets of people. i think that benefits big companies. you can look at the big cap names. if you are looking for value on a trade in a recovery trade,

you could take a step back into small and mids in the united states. but relative to other parts of the world, europe still debating their packages. very difficult decision-making body. they lagged us by a few years in the 2008-2009 crisis. from a metric standpoint, i would say close into the united states, about see a lot of good kiffin depth security. ovary sector of the s&p 500 is yielding more than a 10-year treasury as a side note. if you are choosing the right sectors and themes, then yes, you want to be in the us also. romaine: the 10-year yield about 72 or 73 basis points. you mentioned the idea of dealing with the prospect of inflation at a time when we are in the middle of deflation. i wonder how you as an investor strategize to deal with what potentially could be that hand-off from a deflation area

environment to an inflationary one? >> well, i think in the fixed income space, then tims would be a natural fit. treasury protected items in the portfolio. and in sectors, you want to continue to own the growth sectors even if you have to hold your nose a little built in terms of p.e. ratios. you are still getting good dividend streams. if you are combining center field those few elements along with some defensive plays that might give you more yield, i think the most crucial thing for individual investors is to have a really strong and clearly well thought-out financial plan to anchor these strategies that will allow portfolio managers like me for the clients that i work for to work the money over a market cycle without there being any fear of the portfolio needing to be distributed for income, purchases or any other kind of debt.

for my client, that is always the first stop, is building their family thesis. and then from there we allocate the appropriate amount of money. this is not a market you want to be in other your skis. the best way to immunize yourself from that is not to have too much money ever llocated in a portfolio. caroline: anyone asking about bitcoin for the inflation trade? >> no. i don't have a lot of clines interested in bitcoin. that is my short answer on that one. you really want to have these plans together so you can move quickly and walk away from these events to move forward. >> sherry paul, thank you for your time. private wealth vizquelor. great to get her thoughts.

that is it for the closing bell. why never being rich on average, the world has never been more angry. ark, co-author of angry-nomics joins us with more.

[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] caroline: fromberg's world headquarters in new york, i am caroline hyde. taylor: i am taylor taylor. romaine: and i am romaine bostick. caroline: volumes dropped by a quarter of their usual he is levels. energy financials are your worst performers.

the e.u. looks to protect its businesses from potential take-overs by chinese companies, wie suggesting measures. and the year's biggestism p.o. we have the advice chair on equities partial markets. you have to check out the markets. >> very interesting. you are seeing more against ens here for how evaluations are for u.s. companies versus european companies. you are continuing to see european stocks trading only 18 times on the forward p.e. basis. we care about this because more and more chinese corporations are dweering up for cheap buying sprees. they are looking at massive discounts in europe, companies ravaged by the coronavirus and saying now might be a good time to buy these. we are knightonned by jick, -- we are joined by nick.

we are seeing e.u. and u.s. companies start to push back on some of the fournette take-overs they are starting to see? >> yeah. i think absolutely we are, and a lot of it has to do with china. we are ust a reaction seeing among western governments that efforts should have been taken in the past 10 more an oecd into direction. it just hasn't worked. governments are looking at taking a harder line, and we are going to see more of this. romaine: taking this harder line, there have been attempts to do this before, and it always runs into some sort of opposition by business groups who have their eye on that emerging economy, the large group of potential consumers over there in china. do you think that the government efforts here to sort of contain china or to sort of send a message to china is

going to be able to overcome some of the opportunity that businesses want to be able to exercise over there? >> i think those areas in push-back that you rightfully point out didn't rely strycova the massive change in trade policy from the u.s. toward china in past years. we already see some clear we already see some clear signs that governments are becoming more risk tolerant when it comes to putting barriers in place. the e.u. is going to move much more slowly than the u.s., and the mechanisms with which they are trying to address the china challenge are different. we are talking about state subsidies and policies in european companies directly to orestall buy outs from chinese inquirers. that is a different policy in those types of intervention that the u.s. is further behind europe.

caroline: interesting. cue push us forward to the 2020 election and what you are seeing in terms of the ongoing narrative of the u.s. versus china into 2021? >> certainly in the news today were revelations from the john bolton book about trump's trade policy, so i expect we are not talking about this for the next few days. it is pretty clear in the u.s. with the trump administration, particularly after the coronavirus outbreak, has decided that pursuing a harder line toward china is cons tents ith its campaign, a higher likelihood in the re-election campaign this november. but up to a point. i don't think we are talking about a trump administration that is really looking at putting new tariffs in place on china. there is clearly a harder line that the administration is pursuing on the technology side. to be ll trump has

cognizant of the risk to u.s. facility. tracy: the $1 trillion infrastructure plan was floated around, and some of it talking about 5-g. how much of a risk is it to keep china out of the 5-g race here in the rest? >> china is a minimal player in the u.s. to question what is the potential broader fall-out to the relationship and how do other governments, particularly europe, respond to the u.s. efforts not to work with the chinese company. i think it is really interesting, the extent to which there is an actual conversation in the uses now about industrial policies to encourage high tech knowledge re-election manufacturing to the u.s. and direct government subsidies in the u.s. to encourage firms to do . that those are going to be some of the interesting stories to

watch over the next couple of months. romaine: do you see any meaningful economic impact out of all this, particularly on the u.s.? >> you are talking about the technology side or the broader trade story? romaine: the broader issues with china. >> right. we have massive tariffs against the u.s. biggest trading partner right now. it is a constriction on growth for sure. there there is any trajectory change there -- and i don't think so. it would be problematic if trump decides to rasp oat up the tariffs further from now, did you but i don't think that is the outlook here. romaine: nick, good to get your thoughts thrfments let's turn to what is going on with oil. immense volquez tallet. we spoke with alexander novak during a bloomberg future of oil event where he shared that

current opec output curves are justified. take a listen. >> yes indeed. you are right to mention we have made the decision on june 6 to be reserve june costs for the month of july. i think this was the right decision. of the elped a lot of conversation, and to help volatility, we need to come out of the recovery period and preserve the fragile bonds. we have decided to come up with a compromise decision to extend it for one month. as for the future, i would like to remember that during the many years we have been in this for cooperation, we have always said we are flexible. we need to look and study the market. we need to make sure the market is balanced, and we need to be confident of what the pace of recovery is.

we will not be making any decisions in the future based on supply and demand. i would hike to note we have made the decision we would man torre the state of the market. the next watch will be held tomorrow where we plan to discuss the conformity of the market and what the future holds for us. >> i want to ask about the conformity levels tomorrow as you mentioned. the data you are seeing thus far, are the laggards, notably the likes of iraq, who were supposed to make up for the cuts they failed to comply on, are you confident that these countries are doing so? >> talking about performance evels and preliminary numbers, i can say that conformity is on

high level, closer to 9%, and very encourages. at the same time, there are some others, and we will be discussing this tomorrow as well. i would like to remind back on the 6th of june we have decided that all countries and that everybody has to reach 100% conformity. i just hope that all of our colleagues once again reiterate their commitment to that and to their part, which about will ensure a more stable market. >> i know we are only in the middle of june, but what are you seeing for the first few weeks of june? can you give us some details about how you are come applying early on? >> russia takes its obligations very seriously. one of the indicators that this is the case is our almost

of close compliance to 100% conformity. if you remember before, we have always been reducing production gradually. but now thanks to the summer months, which makes it a simpler task, we have been able to achieve this result very quickly. thus, russia has committed to its obligations, and we will be taking the full obligation. >> just today we saw beijing cancel 2/3 of its flights because of an uptick of virus cases there. there are pockets in the united states that are seeing these trends as well. brazil had thousands of cases just in one day, north of 35,000. where do you see demand right now in the oil market? >> that is a good question, and i think it is a very important

one. demand i would say is probably the most important factor for the market now. bull at the same time, i can stay there are still uncertainties and volatility, particularly if we talk about the pace of the recovery. we have gone through the period where we saw the first part back in april. we have seen the recovery ynamics in may where limitations were starting to lift, and now we are seeing different dynamics. now there are risks of a second wave emerging, although it is still quite uncertain. >> the russian energy minister. now coming up, it is i.p.o. market is coming back with some f the biggest listings among the biomedical companies. we will discuss with our guest. this is bloomberg.

romaine: that come back's we ha in i.p.o.'s we have been talking about here. let's turn it over to our host. she is joined by a special guest. >> joining me now is cully davis, who is the advice chairman of equity capital marks at jeffries. thank you for joining us. you have worked on some of the bigger i.p.o.'s last year in the precoronavirus market. do expectations change for the type of company that can go hub in this type of whipsaw in volatility? >> of course they do, yeah. there's no doubt that the bar is a little different today given the environment. it is a very strange equity market environment, and the bar has changed.

although having said that, there is still a fair amount of activity even right now. >> last year we saw some of these evaluations really skyrocket in some of these markets. i covered some that didn't go public. is silicon valley going to have to come back to earth with the evaluations? >> evaluations are driven by individual company performance. some companies that have exposure to the consumer that have exposure to travel, clearly are suffering a little more given the current environment. there are plenty of companies, including soft wear companies that haven't skipped a beat. in some cases they may be accelerating their activity. those companies, their performance has been strong, maintained or potentially accelerated, i expect the evaluations to remain quite high. >> is there a window these

companies have. we have seen this before in the stock market, partially driven by all of the liquidities pumped into the system. are companies looking to go public faster because of it? >> i think the sentiment maybe two months ago was certainly not the case. but as we for his guard to today, given the -- but as we fast forward to today, given the money inject the into the market, given the rhetoric around infrastructure and other spending bills that may drive a faster recovery, i think that sentiment has changed pretty dramatically. i know a lot of the companies that we are spending time with just a month or two ago were sure thulled put their plans on pause. today they are actually getting a lot more aggressive about preparing and considering to take advantage of this market. the market has recovered i think faster and stronger than anyone expect the. i certainly would have lost a bet back in march if you would have asked me would the market

be where it is today two months after suffering what we did in march. it has recovered quickly. >> what are the limitations here? the biomedical market is a specialties for jeffries. is there a market for everybody? are there limits? >> sure, there are of course limits. biotech is an interesting sector. it is one where we are very strong. we have done more i.p.o.'s this year than any bank. we have done 18 this year. a lot of those are biotech deals. hey enjoy a certain immunity from the macro economic deals. they have a defined medical problem, a defined clinic and confined user proceeds. that clinical trial will happen whether the economy is up or down. those types of stories power

through the macro environment, and they have been some of the boast performing anna:'s in the year. for other stories you really have to kind of dig deep into the actual individual story to understand whether the -- to understand what are the drivers of the business. we are seeing more and more technology companies start to get ready again. these are companies oftentimes that have a sales cycle or sales motion that is focused on the enterprise. oftentimes they are related to sectors that have actually benefited from this work from home environment. things like work communication, the collaboration tools havoc sell rated. we are all at homeworking with zoom and other collaboration tools. >> we have seen a lot of deals here, additional offerings, add-ons and a lot of stacks. are you changing the way you structure your team in any way because of other types of deals

we are seeing? >> no, we are not changing the way we structure the team. i have sympathy. we have a bunch of folks that are working harder than ever given the environment. it is always a little harder to do our job from our respective homes, but we haven't really restructured a team. we have a very senior effort focused on this product, which is another i.p.o. type that has been very active. we have done three of those transactions in the last couple of months. that team hasn't changed at all, but they are quiet busy, working very, very hard. we have health care, tech, consumer. all of our groups are working harder and kind of working more like 7:00 to 7:00 rather than 9:00 to 5:00. >> thank you so much, cully davis. we will be talking to you again soon. caroline, back to you. caroline: what a great conversation. thank you very much. cully davis with us. coming up, we will speck with the co-author of angry-no,

ma'amics. despite never being richer, the world has never seemed more angry. this is bloomberg. ♪

caroline: in a new book, they argue the combination of macro economic and stresses of daily life have combined to produce a world that is increasingly unequal. all of this coming before the pandemic. here to discuss this book is the co-author of angrynomics, mark blyth. he's also the director at brown's center for economic and finance. what a time to talk about this, what a time to put out your book. you argue despite never being richer on average, the world has

never seemed more angry. can you talk to us about how you are looking at the better ways of finding life balance, practical proposals that could be applied to this post covid world? mark: we just missed a huge opportunity to do this. when you think about the covid crisis, investors panicked. when they panic, they dump equities and want to hold safe assets like government bonds. it is 20 years out of the negative rate. imagine if we use that to buy up all those stocks that were dumped and helped create a national investment fund. the 6% compounded you get on equities feeds into funds and we distribute that in the bottom of the ecosystem that does not have those benefits. that is being supported by the dovetail. we just spent another

opportunity to do something like build a national wealth fund that would make a difference in people's lives. scarlet: talk to us more about what you are seeing in this post covid world. you talk about hourly workers, even local governments, all of whom are bearing the brunt of this and that only makes the issue worse. mark: certainly. we consider the united states, it is 18 million hourly workers with no sick pay. they work in sectors such as retail, construction and services such as restaurants and dining. with covid, it is not clear many of those sectors will come back in any form we know. and those young workers who have very limited skills and financial cushions are not going to come back and they are feeling the brunt that has been put on people for the past 20 years. romaine: when we talk about the current state we are in here, obviously, playing off the title of your book, angrynomics, you

have a lot of anger and a lot of pressure that seems to be building on government. but at the same time, there seems to be a situation where government can still kind of set the agenda, if you will, without necessarily dealing with the underlying complaints that a lot of people have. i'm wondering when you see this populist rhetoric being used by the major political parties on both sides of the aisle, so to speak, what ends up being the outcome? do you get positive change out of this or do we march down to a place that i think a lot of us don't necessarily want to go? mark: i don't think it is inevitable we get to that place, but we need politicians that actually take response ability. that is true on both sides. it is all fine and well standing behind national symbols and how you care, but let's talk about what's happened so far in the covid crisis. thankfully, we decided to support asset prices by falling all the falling assets weekend. that means those assets that are

protected. meanwhile, everyone else if they are lucky enough to be in a european country. states, younited are lucky if you are receiving a check every three months. the asymmetry in terms of who is bearing the cost and getting the benefit, that's what generates it. government have to get much more serious about addressing this. caroline: you mentioned a wealth fund. you also talked about digital dividends, helicopter money. we have been pushing evermore to some sort of universal basic income being deployed in the u.s., but realistically, how do you see a digital dividend being put out as we do see a shift to automation being sped up by the covid pandemic? mark: that is one side of it. think of a meat plant, a place that is primed for automation. but all processes can be automated. we have been waiting for self-driving car's for 10 years. what is really important when we

talk about policies is how far we have come already. you are talking six month ago that boris johnson would be doing unlimited helicopter money to support workers through the financial crisis, i would have bet the house against you but here we are. that goes to show you what is possible is much brighter than what we thought was possible. romaine: a lot of people would have taken that bet alongside you. when we look to the future and into the outcomes of the next cycle, political elections here, is there a sense here that the angrynomics will then turn into something a little happier? mark: well, i certainly hope so, but it depends on politicians rising to the challenge. people are fond of going back to the 1930's to look for tragedy. but we also saw on the crisis in the 1980's were politicians saw we really need to do something. actually stop talking and building new institutions.

let's try new policies and get us out of this rut. now we have a bunch of people that are happy to check in and speak to their based on both sides and that is not helpful. romaine: i wish we had more time. mark blyth came to a lot of people's attention a few years back when he wrote a great book about the dangers of austerity. his new book is angrynomics about the dangers of some of the inequality we have in our society. brown university professor. let's get to mark crumpton with the bloomberg first word news. mark: according to the new york times, former national security advisor john bolton writes in his new book that president trump asked china's president xi jinping to buy u.s. agricultural products to help him win farm states in this year's election. bolton says mr. trump was "pleading with xi to ensure he would win." the times says that bolton writes the house in its impeachment inquiry should have igated president

trump not just for ukraine, but a variety of instances when he sought to intervene in law enforcement matters. trump campaign spokesman says the claims are absurd. the european parliament observed a moment of silence today in the memory of george floyd, as issues of racism in the european union took center stage. european commission president addressed lawmakers. >> we should join forces at all levels. the europeans, national, regional, local, public and private. business and civil society. and each of us individually as citizens to build a europe that is more equal, more humane, more fair. and let me be very clear, in our union, there is no place for racism of any kind of discrimination. this is for sure.

wek: she continued, relentlessly need to fight racism and discrimination. visible discrimination of course, but more subtle racism and discrimination in our unconscious biases. the event a officer who shot and killed rayshard brooks in the back after the fleeing men allegedly pointed a gun in his direction is being charged with felony murder and 10 other crimes. fulton county district attorney says the officer kicked brooks while he lay on the ground and the officer with him stood on brooks' shoulders as he struggled. fired andeady been the other has been put on administrative leave. he's being charged with aggravated assault and other crimes. 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 mark crumpton. this is bloomberg. ♪

>> the limiting factor is not our own manufacturing capacity. that is relatively easy to save. for example, when we build a factor in the u.s., that was done in a few months and that was not done in a particularly high pace. our own production facet is not the big issue here. as a matter of fact, the bigger issue is the supply chain and getting hold of components. a couple of to months or so to get components. we have already built inventory

of those components because we learn from the semiconductors supply in 2018. well prepared. of course, a massive change in supply, we would have some months of lead time. but i do not think it is particularly a big question. the other interesting part of this whole conversation is the role of the u.s. government within erickson. there was talk of u.s. institutions or governments taking a stake in the company. would you ever want that? under what conditions would that be appealing? >> i think we are a private enterprise. i believe in private enterprises. when you operate outside of the government control, i think you are the most innovative, most efficient.

i think we have a fairly good ownership team to push ahead on that. leaned too much to one country could have other implications. i believe as long as the owners think this is a good ownership structure, i think it is great. >> what did you make -- today announced that durable take a more robust approach to china and potentially other countries looking to take stakes or buy european technology. do you welcome that? -- it's a geopolitical question. i think the government's and the politicians should deal with that. but i think as an enterprise, what you can expect from the regulators or the politicians,

the legislatures is to provide a good environment for the companies to operate in, to invest in. take for example the situation in europe.5 what is going to happen with rollout and countries. what is going to happen, etc. those are much more important to fix for the regulators to create a certain investment environment. then, we are going to see operators invest and then we can drive the companies as well. i think whether they should be involved in taking ownership, i actually think i would not have them involved but to create a good investment climate for the company and good investment environment for the companies. now i think the political system

is not doing european enterprises a big favor actually. romaine: that was ericsson speaking earlier on bloomberg television. a quick check of the latest business flash headlines. we will start with morgan stanley. pushing back against the claim by its former head of diversity that there is systemic racial discrimination at the bank. marilyn booker says the bank leadership refused to adopt her plan to address racial bias and was fired. morgan stanley strongly rejects the claims and will vigorously defend lawsuit. pepsico will change the name of its on jemima brent. the chief marketing officer of quaker foods says "we recognize aunt jemima's origins are based on a racial stereotype and we will do away with the name and imagery beginning in the fourth quarter. a new name will be announced at a later date." reed hastings and his wife donating 120 billing dollars to

scholarships that historically black colleges. the couple is giving it to three different institutions. hastings says that historically black colleges and universities have been little-known gems for black education. that is your business flash update. caroline: amazing stories. now time for smart shots where topics.a look at abigail: thanks. joining us today for smart chart is dan. it has been sometime since we have talked. i understand you are bullish. your motto right now is do not fight the fed. talk to us more broadly of what markets.eeing on the thanks for having me. it is great to be back on the show, hopefully back in the studio soon.

i think the structure of the price trends off of the march 23 loves for the s&p 500 is bullish and you have a combination thang me. it is great to be back on of fiscal and monetary stimulus to thank for that, in addition to some of the economic numbers we have been seeing of late coming in better than the draconian scenario that some have been anticipating. with that as a backdrop, i think it is conceivable for the market, s&p 500 to continue to work harder. abigail: that is interesting given the fact you think we are going to remain in some sort of a slow growth period perhaps after this jump we have seen. one of the big debates is whether or not we are seeing a rotation into value out of growth. let's take a look at your first you think this is trend yet, is that correct? dan: that is true. to me, right now it looks like t correct?

nothing more than a mean reversion rally where some of the more cyclical areas of the market and value came deeply oversold into those march lows and what we see now is a snapback rally. if you go back to last week, fed chairman powell told us he was going to keep rates at zero through the end nothing more than a mean of 2022. to me, that is an indication from him that the fed anticipates a slow growth and in that environment, i think it makes sense for growth to continue to outperform. in the first chart we are looking at, the russell 3000 growth. stocks against the value stocks and you can see after a quick pull back to the rising 50 day moving average, growth subsequently rebounded rather tickly to value and is on the verge of making a new high while remaining above the steadily increasing 200 day average rate of it has been our view for a while that in a slow or slowing

growth environment from an economic standpoint, investors are likely to pay up for what is actually growing. and we think that staying the course with growth over value from a strategic standpoint is the way to go. abigail: the next time you join us, we will have to pop that first panel of growth out about 20 years or so because it looks similar to going into 2000. too much outperformance. that does not necessarily mean it has to be a bearish situation. but your next chart here is something we have not looked at in quite some time, the copper to gold ratio. this makes your slow growth case. dan: exactly. the way i see it is copper is an industrial metal widely used throughout the economy globally. whereas gold is a precious metal turn to in times of uncertainty. if we look at the ratio of the

two, it has been declining since 2006. more recently, it undercut the lows that were put into place in 2016 in addition to the lows that were put in place in 2008-2009 within the depths of the financial crisis. the ratio has tried to rally back with this snapback rally in value and some of the more cyclical met sectors of the market but that is a lot of overhead supply to get through for that ratio. world,n a slowing growth i would expect copper to continue to underperform gold. that further bolsters my bullish view on favoring growth over value. abigail: an interesting chart and suggests copper could be in a world of hurt for a while. dan russo, thank you for joining us. this is bloomberg. ♪

romaine: welcome back. we continue to get these updates on covid-19 cases around the country. jumping 3.4%, above the 70 average. we have seen this kind of data come out on a daily basis over the last week or so. joe weisenthal joining us right now in austin, texas. we talk about these daily numbers and we have seen an uptick in cases off of a very low base for places like texas and florida. at the same time, we are seeing a market that seem to shrug this data off. joe: we are seeing a market that shrugs some of this data off. it is getting a lot of attention now that in some of the aggressive reopening states, we are seeing a really meaningful pickup in the number of cases. of course, you can always pick apart the data and say it is due to this or that but eventually,

you start to think, this really is meaningful. i know in texas, it seems to be skewing younger so perhaps it is a little bit less deadly. nonetheless, i think the next thing that we should be watching his some of the high-frequency data as it comes out of these estates. i was closely watching it. i think i may have mentioned it yesterday or earlier in the week but if you look at arizona restaurant activity and we can track that on the bloomberg looking at the open table data, you could arguably start to see signs that is rolling over. that the recovery back to normal is starting to fade. so much hinges on the idea that we will return back to normal in a short period of time. i think it is especially worth paying attention to all of the states, like when is the feedback mechanism where people start to be aware of the rising cases and once again start altering their behavior.

one thing that is so important to remember, the lockdowns followed people's behavior. people started sheltering in place and she's also distancing -- and social distancing before governments mandated it. if that is how people are going to react when the case counts pickup, the economic effects could be similar. taylor: what is the tone on the ground in austin? joe: well, i don't know. i don't go outside. no, i go outside a little bit but only to stretch my legs because i don't want -- it seems like where i am, austin is full of a lot of work from home, educated yuppies who probably read the internet that says to wear masks and they do. it is hard to extrapolate what i see in my neighborhood to the rest of texas but i can tell you for sure, i was on a driving couple of weeks and -- a couple likeekends ago and it felt

, ok, this is what life returning to normal looks like. life returning to normal with a virus out there means a pickup in cases. caroline: very short on time but are you calling this the second wave or just the first wave? joe: here's the thing. the absolute levels have never gone that high so i do think it is probably more accurate it to characterize them as the first wave greeted it is low and still low. 2000 people have now died in texas from covid which is a lot, but compared to what was the peak daily death toll in other states like new york, it is still very low as per capita of the entire state. but on tension is rising an extremely low base when you consider what a big state this is. caroline: joe weisenthal on the ground from austin. that is all. taylor: stay tuned because bloomberg technology is up next in the u.s. romaine: have a great evening. this is bloomberg.

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♪ emily: welcome to bloomberg technology. i'm emily chang. u.s. stocks fall amid concerns of a resurgence of covid-19 cases in the world. infections on the rise in china, brazil. iran saying it may need to go back into lockdown. texas reporting a surge in hospitalizations as well. the former national security advisor john bolton's book. hit the press the trump