francine: the united states reports a record number of new coronavirus cases. florida and texas he pronounced spikes. hospitalizations the sore. h&m reports its first quarterly loss in more than a decade since the pandemic. we are speaking to the company's cfo. brexit negotiator sticks to avoid a new deal. we speak exclusively with the

chancellor of the u.k. on how he plans to ensure economic recovery from the pandemic. this is what the markets are , however,n, the virus it appears european stocks are climbing after promised renewed support for airlines. shrugging offo be virus worries that were seen in the u.s. markets and focusing actually on what is happening closer to home. the dollar is strengthening, treasuries edging higher, shares primed in japan and south korea on below average volumes. now let's get to the bloomberg first word news, and wall street regulators are rolling back. changes to the volcker rule means lenders will soon be able to boost investments in venture capital funds. they will also be able to pocket billions of dollars a set aside the backstock trades.

germany is prepared to strike back against the u.s. on nord stream 2. chancellor angela merkel is looking for an eu response on the pipeline, designed to pump gas from russia to germany. may prompttervention a joint response. the u.s. house has passed a sweeping overhaul, but there is little expectation it will break the president's stalemate over reform. the bill was opposed by the white house. president donald trump is accusing democrats of wanting to we can bank the police. eakenmes after -- we ca the police. liverpool has won its first title since 1990, when chelsea beat manchester city, the first club ever to win the championship with seven games remaining. coronavirus restrictions did not

stop fans gathering outside the stadium to celebrate. global news, 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. now let's get back to the markets, and the united states has hit a record number of new coronavirus cases. state health department reported over 37,000 new cases on thursday. that came as texas paused reopening measures come up with houston intensive care wards reaching capacity. joining us now is editor john diamine, who looks at everything health care-related. john, what do we know about health care in the united states? john: good morning. the spike of cases is very concerning. cdc director robert redfield talked for a while with reporters yesterday. he seems to be contribute in a spike in cases, to some degree, to testing.

there is no doubt that in many that thestates now relaxation of the same type of measures we have seen here of social distancing, of lockdown, that is contributing to the increase in cases. john, we have seen local outbreaks in germany, and at the same time, we have seen the german infection rate declining. is the virus truly under control? in europe? john: i do not think you can say it is truly under control anywhere. europe one and lockdowns for weeks without seeing that europe went into lockdowns for weeks without seeing any new cases. the issue is, you know, this is a global virus. it is difficult to keep track of, because asymptomatic people can transmit it.

you can be walking around with this virus, not know it yourself. other people do not know it, spread so that is how we , and i think that is what happened in germany. germany is doing a very good job controlling this. there's a difference between, you know, doing your best to control it and having it completely under control. francine: what is the latest on the race for a vaccine or for an effective treatment of this pandemic? john: well, so, a few days ago, you know, we got pretty good whichbout dexamethasone, is the drug that was tested here in the u.k., shown to treat the virus effectively, contributed to survival. of course, now what we are looking at with vaccines is that a number of new vaccines are going into phase three trials. i talked with dr. fauci the other day. vaccine, along with the oxford vaccine, is one of

the fastest moving out there. that is set to go in stage three trials in july, probably in early july, so we may see results from these vaccines. we may know whether or not they work. they could prevent infection. they may just prevent severe cases, but we may be getting a better idea of that in the coming months, perhaps as early as september. to you know, we are looking a couple of months down the road for very interesting results, i think, from some of these vaccines. francine: john, thank you so much, john lauerman who heads our pandemic covered for bloomberg news. the u.k. chancellor exchequer at 10:00 a.m. in london. this is bloomberg. ♪

lebron: i have not heard a true official apology to colin kaepernick about what he was trying to tell the world about while he was kneeling when he was with the 49ers. now they are listening some, but i still think we have not heard that official apology to a man who basically sacrificed everything for the better of this world. was the: well, that l.a. lakers lebron james on the nfl treatment of former quarterback colin kaepernick. knee during the national

anthem to protest racial and -- racial equality and police brutality. improvebusiness leaders diversity, equality, and inclusion in the post-coronavirus workplace? the world economic forum says as a corporate world emerges from the corporate crisis, they have a unique opportunity to embed social progress and create a new normal. they have launched a new tool kit to highlight the opportunity of the challenges of using technology to promote a more diverse workplace. i am delighted to be joined by saadia zahidi, director of the world economic forum. looking at have been this much more than anyone else. and in the last couple of months, we have had protests in the u.s. come across the world, wanting more diversity and equality.

, whatll that accelerate you have been telling the world needs to be done all along? saadia: thank you, francine, and great to be with you here, as always. you are right, in the last three months, three major trends have come together. there is a greater acceleration of the revolution, a lot more use of a lot of the technologies that we have been talking about, and some organizations have been using, they are using them all the time now. the second element is the changes to the workplace itself and the massive disruptions to the job market, including a lot of unemployment. and then of course this wave of protests and this demand for social justice that i think we have not seen with this tenor before. so there's this unique moment for businesses to think, well, is this the moment i start defunding my equity and inclusion budget, or is this the moment that i double down and

realize that the future of creativity and innovation i will need to grow my way out of this crisis, it is only going to come if i have a more diverse workforce? and we surveyed, we brought together for the first time chief diversity and inclusion officers from multiple fortune 500 companies, and we surveyed them, we asked them, which way are you guys going to go, are you supporting this more or less? almost 100% are expecting much more funding will go toward this , so i think we are starting to see there is a fairly positive response coming from the business community. francine: and concretely, what does that mean? this is a toolkit, but, you know, do you have cheap exec this coming to you saying, i want to be more diverse, inclusive, but it is hard to do, or is this about hiring more people? saadia: i think it is the immediate response. where, a lot of corporations have, you know, given their corporate philanthropy to the specifics of a society organization, for example, and that is very important.

it is an important signal right now. fundamentally, what they can do is start tackling their own systemic biases, and to do that, they have to use things like the toolkit, where we are basically saying use some of the industrial revolution technologies in a smarter way. if you rely on some of the big data that underlies, let's say, ai-driven hiring tools, which are based on biased data, then you will end up with negative results. but with some tweaks to the same technologies, you can actually put diversity and inclusion as a key outcome of your talent pool, your selection, and also your employee experience, reward, and development. so that is basically what we are pushing for. i think there's one other element. the key word about changes not just diversity and inclusion, it is diversity, equity, and inclusion, and that is where a lot of people are demanding right now. , who is thevid saadia

head of this? i do not know if you break it down by sectors or region, is it any region or sector that should be a template? saadia: a lot of them are consumer-facing firms, so consumer and retail firms have traditionally been ahead of the firm. a lot of the media entertainment and entertainment relation firms have been ahead of the curve. when we look at the spectral analysis from a couple of years ago, that was the case. i think where the big wins will come from now are two areas. one, there are sectors that are very female-dominated, for example, when it comes to the gender equality end of diversity, equity, and inclusion. changee going to have to their basic wages. those are essential workers. they are going to have to pay people better. there are a lot of companies producing the technologies we are talking about in the toolkit, they are very not diverse, and they need to focus on having people of more genders, having people of more races, having people of more

nationalities, so that the technologies they are developing do not have blind spots and not simply cater to one part of the population. francine: the toolkit cites a lot of research, that well-managed teams perform better than i guess more homogeneous. it seems fairly obvious. why do we still need to point that out in 2020? saadia: you know, there is a moral case can a legal case, an economic case, a business case at a micro level, at a micro level. society is, businesses that integrate more people, more diverse, tend to outperform, and that is here, but i think now we have this unique combination, we have come up to some extent, the social pressures that perhaps were needed to push people toward action, and at the same time, we have all of the possible cases

and tools laid out that any businesses could need, so i do feel quite optimistic that we see a fundamental change. this is not something that can be forgotten and just a couple of years' time. i think this is a change that is here to stay. francine: i meant to ask you, saadia, is this a change that is all happy talk, and then we go back to what we had 2, 3, 4 years ago. who will be holding people to account? how do you measure success on this? saadia: some will depend on the economic outlook and what the job market looks like. are we talking about a recovery that takes us years, or are we talking about a recovery that takes place in 2021? i have spoken to you before about research we are doing on that end, and i think the unique difference now is most businesses, instead of going down the direction that they say, well, we are going to wait until we can afford to do this, instead of that, they are actually seeing that this is the moment for them to invest in

greater diversity and equity and inclusion, because that is what they will need to actually grow their way out of the crisis. and so i think they're starting to see, like, a fourth business case for why they need to be investing in this agenda now. francine: saadia, thank you so much, as always, saadia zahidi, managing director at the world economic forum. coming up, we will talk with the u.k. chancellor of the exchequer, rishi sunak, what he can do to safeguard u.k. economy. that is after 10:30 a.m. in london, and this is bloomberg. ♪

this is "bloomberg surveillance." i am francine lacqua here in london. companies listed on the new york stock exchange traded billions of dollars. that follows offerings and raisings in ipo's. president, stacy cunningham, says more see it as an alternative to the traditional ipo. care she is. stacy: i think it is an innovation in the capital market space, and we are nearing from developers and issuers that they are looking for more choices, so we have been working with the on productively defining the listing paid we have had two today, the cfo of spotify came up with the idea, product to us, we rolled out the

first one. slack was the second company to choose that path for their public listing just over a year ago. and we have been building on that model is to allow for capital raising. what the direct listing really does is it separates the timing, d capital -- decoupled. you can choose to go public but not necessarily raise money at the same time, so the two to date have taken that path. now what we are working on is, what if you would like to raise money, but you like the exchange to determine how the offering gets priced? so that is the phase we are working on with the sec now. we filed the first iteration back in december, and we work productively with questions that they have, so this most recent filings we submitted on monday answered mechanical questions on how the offering would be priced in the morning, how it can get entered into the market as an order, and what measures need to happen to get that live and public, and we have been

advancing that ball so we can continue to work with issuers and investors on having another alternative to the market. stacy, you are in the middle of this regulatory process. none of us know how or when it will come out. from your perspective, it sounds like we have to work it through, it may take some time, but it is not a substantive issue -- he will get there sooner or later. stacy: i think that is right. that is how it worked with spotify, the division of corporation finance, very constructive feedback and dialogue, because their goal is to protect investors, and so they want to make sure they are working with us to develop a process that achieves that goal. it took about a year and a half to get that done. we are working on this iteration, and they are more about how this actually comes to market, how this gets priced, how do investors know what to expect that morning, for my price level, range perspective, and how do we know that that interest gets satisfied?

there mechanical issues we are working on. i do think we will see a direct listing to have the ability to raise capital at the same time of the listing in the not-too-distant future, and there are some companies that have been asking about it, too, because they are interested in pursuing that path. building on the innovation -- we have seen over this period of time that during covid-19, when the markets have been very turbulent, you have seen a permit is number of special purpose acquisition corporations, which are management teams raising money, having toithout business operations yet, but planning to go out and acquire a business. i think the fact that we have seen so many come to market over the past couple of months is really indicative of the fact that there are opportunistic businesses out there, another way to come public, because at the time, the combined entity is now a public company, so that is one path we have been working on. david: stacy, if this all gets worked out properly, how much

difference will this make in your business at the new york stock exchange? more companies will go public, or if they do go public, they will be listed on the new york stock exchange? how material will it be on new york stock exchange? stacy: first, i do not think a direct path will be for every company. we are the first one to ever hold one, right? the fact that we have human beings involved overseeing that discovery process puts us in a unique position to be able to make sure that things are flawlessly executed, not just at a time of ipo but especially when you look at a direct listing. what we see on direct listings to date is those opening options are much larger than the typical opening option for an ipo. both spotify and flat were in the top five sized numbers of shares printed in the number of options come of all opening options in history come among the list of the largest ipo's of all time, even though, as companies, they were smaller than some of those companies, really massive trades, because

so much price discovery is happening. that is why price discovery is such a critical part of the direct listing process, and we are really uniquely positioned to accomplish that. was stacythat cunningham, president of the new york stock exchange. coming up, h&m's first quarterly loss in more than 10 years. we will get details. our interview with the company's chief financial officer is next. then, later on, we also talk with the u.k. economy with the chancellor of the exchequer. that interview is one hour from now. this is bloomberg. ♪ this is bloomberg. ♪

economics, finance, politics. let's get to first word news.

u.s. has hit a new record in daily coronavirus cases. this urge is being led by florida, california, and texas, and the texas governor, greg abbott, is halting the next phase of the state's reopening. if trends continue, cases in the houston area could triple or quadruple by mid july. the federal reserve is banning buybacks through september and canceling dividends. annual stress test -- the review uncovered resist -- dividends will stay at second-quarter levels with the fed saying future payouts will be limited by a formula based on recent earnings. shareholders won approval for a 9 billion euro bailout from the government. it secures -- one controversial aspect of the package was a heavily discounted 20% -- the kovner -- the biggest

shareholder back the deal hours before the vote. global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in .ore than 120 countries on to some corporate news that we have been looking at extensively. h&m has posted its first quarterly loss in more than a decade. that is as the coronavirus is tocing the swedish company close doors. i'm pleased to be joined today by adam carlsen, the chief financial officer at h&m. sson.am karl how are customer flows going where stores have reopened for a while? adam: good morning and thank you for having me. the ark happy to be able to welcome back customers to stores as they open. wet we currently see is that

need to operate those stores in -- with some restrictions, still in compliance with the authorities and the local regulations. happy to welcome customers back, but of course we have some restrictions in the markets. francine: are there any places in the world where you had to reclose some stores again because of covid-19? are you doing that in the u.s.? constantlye monitoring the situation, and i think one of the examples is in asia and china where we can see , taking decisive and immediate action. are always complying with how the authorities are managing the

situation. francine: you have said this morning that you are preparing for a debut bond issue. what is the money raised for? is it for expansion online? at the same time you are closing stores. where do you see opportunities? chiefone of our priorities is that we have financial resilience, and with this program we believe that we will have wider access to capital generally. this is more of a long-term plan ,o widen the access to capital increasing the toolbox. so it is more of a general approach to securing the long-term financial structure. francine: so you don't have any use for it straightaway. would you consider it a safety blanket or to make sure that your french ashley -- financially strong no matter what happens next? adam: we have short term liquidity and now we are redoing our long-term access to capital.

this is part of that plan, to ensure that we have a variety of sources of capital long-term. francine: longer-term, how many stores do you think will have versus selling online? your closing less shops and some of your competitors. adam: the plan is constantly --nging, and the chances are we are working super hard to ensure that we are following how the customer behavior is changing. most likely, we will review the portfolio over time, but it could go either way. in some of the mature markets where it is high density, we will do it one way, and we still have the opportunity in many other markets to meet customer demand in physical channels. francine: how are you approaching inventory reduction? adam: right now come as you saw

in the report, we are taking immediate and decisive action to adjust the stock and purchasing levels. faced withently immediate actions and we are looking to the third quarter where we expect slightly higher markdown levels. as we normally do, continue to manage the buying plans to ensure that we have a relevant stock composition into the autumn. but as mentioned, we are pleased with the immediate work and we need to ensure that we have a good plan to put us where we most likely will have a slightly higher markdown. francine: what do you do with the autumn-winter season? how much are you ordering compared to last year, and how will covid-19 in general change the fashion cycle? adam: from an internal perspective, we have made full use of all of the flexibility

that the supply chain gives us through the spring, and this is what the plan continues to do. so we are in the planning and buying phase for the autumn and this is one of the advantages we have of having such a strong supply chain. we are still in planning and adjusting phase for the autumn, but hopefully we can see the trading recovery as has started right now, and we believe we will have a very strong autumn set up. francine: thank you so much for joining us today, adam karlsson, the chief financial officer at h&m. let's focus on equality. spurred on by the black lives matter protest following the killing of george floyd, tech companies it promises to increase diversity in their workplace. these companies have been making promises for years and little has changed. they are still predominately white and male.

joining us is our bloomberg quicktake reporter who joins us out of new york. good morning to you. what have these companies pledged? jennifer: like you mentioned, these companies have been making these promises that they will push for more diversity for years, so a lot of black tech workers and many people in general are saying enough of the talk. show us what you're actually doing. black workers are still very underrepresented in these tech companies in the executive office and also in technical roles. in particular with facebook this time around, people are stepping up the pressure and want to see more action from facebook. a group of civil rights organizations started this campaign called stop hate for profit. what they are calling on is big brands to stop marketing with facebook for the month of july until facebook cracks down on hate speech and racism on its platforms. so on thursday night we saw verizon come out and say they were joining this boycott, and they joined other companies like

patagonia and rei and eileen fisher and ben & jerry's, and all these companies have really been in solidarity with the movement. they want to put pressure on facebook. they don't what lip service, they want action. these kinds of protests have not always made a big dent in facebook is this overall, but it is getting their attention. they are calling companies and trying to talk to them about the issues they are raising, so it is going to continue to be an issue that is going to be brought up, especially leading into the november elections in the u.s. francine: we have also seen brands in asia make plans on white own sale of products. jennifer: it was interesting to see them make their own statement about how they are tied to the racist past that they have. in particular, we saw the indian subsidiary of linda yet -- of unilever come out to say they were going to remove references

white" onlight, and their product. also their "fair and lovely" brand. johnson & johnson said they are going to take action with their fairness and lightness products. in particular, it has used business. people are buying creams. the fact that they -- people are buying lightning that lightening creams. there is still a lot more to be done. it is a positive step, but it is not the end of the road here at all. francine: thank you so much. we will have more from jennifer throughout the day on some of what we are seeing. our quicktake reporter. the outlook for oil, gains for u.s. crude are slowing amid uncertain demand outlook.

we will discuss with the more -- with the former chief executive, paolo scaroni. this iscoming up, and bloomberg. ♪

francine: this is "bloomberg surveillance." i'm francine lacqua here in london. u.s. crude has rebounded rapidly since futures plunged live zero in april, but the gains have slowed this month and the surgeon virus cases has clouded the demand's outlook again. running is now is paolo scaroni, current chairman of a seagoing. oil you look at demand for and the concern that we are going to see deflationary archers around the world because of the price for oil, does it

make you concerned that the world economy is going to be more depressed than we think? i would hope the economy would cover -- would recover sooner than we expect. reached around $40 a barrel. . to give you a number, last week, demand in the united states has been a 9 million barrel a day -- duringo finding the month of april. with some recovery in demand as well. francine: what makes you worried about the world economy overall? if you look at the price of oil, it is a metric of what is going well and what it is not. except for the opec plus bites that we are seeing here and there. are you optimistic? i do believe that the

demand for oil is around $40 a barrel. $40 a barrel is a good price for opec-plus, russia, and saudi arabia. time, it makes it almost impossible for shale oil in america to continue to go, and quite the opposite. of demandthe amount is lower than before, and demand is picking up. with the price of $40 a barrel, there will be a stronger than usual effect on the economy. not showing up again as it has been doing in the last few months. so in total, i am more in favor of a v-shaped recovery in our economy. thatine: is there a danger

we have to go into a full lockdown again? you're almost right at the center of where covid-19 exploded in europe first. from what you see in milan and elsewhere into reopening, is it a template of what could happen in the rest of europe? you open gradually but you make sure you stay open? we are certainly more prepared to cope, to fight against a new covid zone like what happened in germany last year. it is happening in italy as well . some areas which all of a sudden you have 30, 40 new cases, but there is a machine ready to deal in this. generalnot expecting a covid infection all over italy or all over europe again. francine: when you look at deflationary pressures, i don't know how much time you spend with your rothchild head talking

to other chief executive's about it. is there a danger that we go into this japanese like deflationary pressure? my view is that with the amount of liquidity that there is in the market, in the dollar area, we sterling should expect more inflation rather than more deflation. sometimes, to be a couple or two or three years, but for example food prices are moving up right now, so i am not expecting deflation. i am inspecting very low inflation like in the last few percent,he 1% or top but not inflation. not a japanese scenario. francine: thank you so much. we will be right back with paolo scaroni come and we will also be talking about ac milan and

football. therell has returned, but are no signs of fans returning to the stadium. we'll talk about how to start sports safely during the pandemic. that is coming up next, and this is bloomberg. ♪

ebron: i believe sports in general has done so much for the community, for households, for bringing people together. or importantly, our commissioner and our league has always allowed us to express what is going on in our lives, so for us to be together as a league once again, along with what is going on right now, it gives us another opportunity to talk about what is going on with social injustice, police brutality, black lives matter, and it continues to hit home on things that are going on that matters a lot as well. sports has always been something that galvanized and brought people together, and just makes people feel very uplifted.

i know in my community right now, unfortunately a beautiful 18-year-old girl was just gunned week,n akron, ohio, last a week after graduating high school. --just to get peoples minds not saying forget about certain situations, but to just have a breath of fresh air, to have a breath of a sense of love, with what sports can bring. i know what i can do on the basketball court can bring a lot of happiness to a lot of households, including my own and including my community and my kids, so i am looking forward to the season getting restarted, adding back in a laker uniform and continuing to push the envelope not only on the court but off the court because like i have been telling a lot of my colleagues, a lot of my friends, i won't stop until i see change, and i mean real change for us as a community, as the black community both on and off the floor.

so my mission stays the same. francine: that was basketball star lebron james speaking as closely to bloomberg about restarting professional sports. in the u.k., the football season managed to restart with liverpool having a long awaited last night. are ending in a dramatic fashion with fans not allowed to be in stadiums. how to reopencuss sports safely is ac milan chair paolo scaroni. dot are clubs going to concurrently to actually combat racism in european football? issue,this is a major and i will say it is a major issue in football. with ac milan are fighting

specific initiatives on the stage, on the web, to fight the race phenomenon. now, of course, now that we are doors, behind closed there is no way to show racism, start opening again our stadiums -- francine: how important is it for clubs to increase famed playersfor -- andhing and in verio managerial positions? will concrete steps be taken? paolo: i think it will. executive, for him,

this is really a very important situation and i'm sure we will make great progress. we know that football broadcasting rights generate billions for the premier league and so on. could this all changed due to the pandemic? it should change for the better, i think, because seria is not seeing the amount -- we are having offers from private equities in the last few weeks which value seria much higher than what we have been getting in the last couple of years. so we are reviewing as a league all our strategy because we need to improve the revenues coming

internationalnd -- we had a meeting last week to discuss the specific issue. you worry that subscriptions to watch live tv will fall over the longer term? paolo: well, they might fall in europe, but they should increase in asia, in latin america, even in the united states. i believe that football has a long way to go in order to and we willmarkets, work on that in those countries. but people are eager to see football in china, in india, in pakistan, in indonesia. ,o we have markets to conquer which is exactly what we are planning to do. francine: when you look at when fans can go back to the

stadiums, do you have a timeline of whether that could happen? if they don't go back to the stadium, is there a danger that fans actually fall out of love football?all ech has been a long fight that we had, even with the italian government, to allow us to play football again. it started 10 days ago everybody is watching on tv. matchescourse, to see without the public is a little sad. it would not last for a long time. you so much,nk paolo scaroni of ac milan, vice chair ed rothschild. that's vice chair at rothschild. ♪

francine: the united states

reports a record number of new coronavirus cases. florida, california, and texas see pronounced spikes. lone star state pauses its reopening as hospitalizations soar. the federal reserve told the biggest u.s. banks they can increase dividends or resume buybacks for the third quarter after a separate review of coronavirus uncovered a potential risk for lenders. and the u.k.'s chief brexit negotiator rejects a new proposal to avoid a no-deal. we speak exclusively with the chancellor of the u.k., rishi sunak, on how he plans to ensure the nation's economic recovery from the pandemic. well, good morning, everyone. welcome to "bloomberg surveillance." i'm francine lacqua, here in london. tom keene is in new york. the marketing europe are focusing more on the reopening of the economy on some of the bailouts or the help that governments extended to some companies rather than the number of infections rising in the u.s. tom: it is a lot of different stories on this friday. it is a very odd week, and