there could be a little bit of room to run but it does not come without volatility. romaine: here comes the highlight of the day, that gigantic bellringing on the stock exchange the dow, the s&p, nasdaq all up very strong. finishing the quarter up about 29% each. quarterup 19% on the come only 1% on the month. we talk about how we came out of a distal q1. into athe fastest plunge bear market. we came out of that, one of the fastest rebounds. been stuck8, we have in a relatively tight range.

basically kind of bouncing around. there is a lot of concern as to where this rally can go based on the fundamentals with the economy and corporate earnings. caroline: the economy, corporate earnings, this is exactly what bloomberg intelligence's gina martin adams has been talking about. the second phase of the recovery will be slower, choppy or. we have real earnings progress to underpin some of these numbers. today, we got a little bit more better-than-expected consumer confidence data. taylor: driving valuations on the s&p 500. one of the first times in a very long time where the s&p trading at a valuation is higher than the stocks index. typically, those chipmakers have been so overvalued. refocusing back here just on the u.s. is really led that market

higher. romaine: when we talk about risk assets, we look at some of the havens. gold at one point today traded above $1800. having one of its best quarters ever. treasuries have been kind of range bound over the last couple of months. year-to-date, 20% gains if you are invested in the long bonds. definitely a flight to some of the havens. taylor: i want to pose that question to brian nick. talk to us about some of the underlying nervousness we are seeing. gold up $1800 per ounce. dollar showing its strength. despite the optimistic tone, you have this feeling that treasuries nonperforming, dollar is outperforming, gold is outperforming. what do you make of some of that

underlying nervousness? >> there is no question that some of what drives gold upwards is panic or nerves. i think the baton has been passed from panic, which is starting to subside will really has subsided from the financial market in terms of liquidity, functionality. what drives gold in perpetuity, what drove it from around 2010 to 2015, a sense that interest rates were low and were going to stay that way. that is really the message on steroids. the fed has done a much more thorough job of communicating the idea that it is not going to be raising rates. back in june of 2009, the market expected the fed would raise rates in six months. this time around, the market is pricing in basically a negative

fend funds rate to 2022. if you're faced with that as sort of a safe haven treasury investment, gold does not look like such an alternative. at 2011,lso look back over the last nine years, you .et a 0% return moree printing a lot treasuries, issuing a lot more treasuries than we ever were before. other countries are doing a huge fiscal expansion. there is still i think not enough supply of this paper to satisfy the growing demand from investors. thoseg as that is strong, safe havens will be probably overvalued.

relative topensive their own history. romaine: fed ex earnings did cross the wire. four q revenue coming in above analyst estimates of 16.3. adjusted eps beating the estimate of 153. beating expectations. a lobar. these numbers are well below what the company earned and reported a year ago. in --did come caroline: revenue, $17.4 billion, it is a heat, but just shy of 17.8 this time last year. we will see how the shares continue to rally in after hours trade. that does it for "the closing bell." "what'd you miss?" is next where we will be looking at uber's potential purchase of food delivery competitor postmates.

this is bloomberg. ♪

♪ caroline: from bloomberg's world headquarters in new york, i am caroline hyde. romaine: this is "what'd you miss?" caroline: was it rebalancing or just risk on? , 3500 is where we sit at the end of the trading day, and of the trading quarter, and of the trading half-year.

the best quarter since 1998. uber is in talks to put this -- to purchase postmates. and, keep the virus in check. fed chair powell highlights how crucial curbing the virus is not just for people's health, but the economy as well. we are of course awaiting a spacex rocket launch, the falcon 9, just in a few minutes. we have a picture live already, one minute, 40 seconds, counting you down. we are going to be watching all thing's to do with this particular launch. romaine: this is a relatively routine launch for spacex now. the last one that we saw, that was when they sent actually people. the first manned mission out into space.

we will keep an eye on this. obviously, this is down at cape canaveral in florida. us of a certain age, we remember these launches, whether they are manned or unmanned, being done by the government themselves. of private companies, whether it is elon musk with spacex, or other rocket withnies, virgin galactic richard branson. caroline: elon musk, always one for a bit of a joke. falcon 9's first stage on the just send instructions space -- landing ship. space vehicle three from cape

canaveral. we can hear the countdown now. three seconds to go as we watch this particular launch. >> left off. go, falcon. caroline: there you have it. gps of course delivering positioning, navigation services. gps three will help ring higher power and more accurate signals that are harder to jam. in this munication's age, which is perhaps what we are more focused on rather than the space race. absolutely majestic. of course, after this thing separates from the engine, that reusable rocket will eventually

have to fall back down to earth. basically a platform in the ocean. not fall but basically be guided down in a controllable manner. in the old days, they would just explode and you cannot reuse them. this is also a way to save money thoseose folks that send very interesting satellites into space. in san francisco, focusing a lot on elon musk, focusing a lot on the space race. it is a lot about making these things more economical. taylor: a lot of the focus recently has been the amazing transformation of the partnership just a few weeks ago, we were talking about spacex in partnership with nasa, launching the first human crew into orbit. before that, it was from a commercial crew to more of a

packaging crew. really interesting to talk about spacex in regards to the company it has become, part of elon musk's brilliant mind that we have continued to talk about. but going forward, what the future of the space race talks about. nasa and the public partnering up with some of these private enterprises here. spacex, whenic and we talk about public-private partnerships, of course that is different from what we are looking at now. romaine: i'm curious as to whether you see a little bit competition here. a lot of the launches we have seen have primarily been spacex rockets. we have not yet seen a sizable presence from blue origin, although they have been involved in some launches. or virgin galactic, which

appears to be focusing a little bit more on manned face -- manned space travel and i guess what could be called recreational space travel. it will be interesting to see how this plays out. we have also seen space agencies and other countries, happened to this private market facilitating a different and potentially more affordable way. taylor: i was just going to talk about what romain was mentioning. commercial space travel is not that far off. i am shocked. astronaut,ng to an ,bout how realistic is it commercial space travel, tourism, saying it is actually not that far off. it could happen in the next decade or so. romaine: did he talk about what that is? whenever i hear about those

idea isissions, the that they go into a sub orbit or go into outer space? taylor: you have to fork up a lot of money. put together some of our file every -- some of our salaries and we will get there. be anot sure if it would loop around the moon, a loop around the planet. caroline: remember, this has , 2004,long time coming the first space tickets for virgin galactic. i'm pretty sure some of them might have thought they had done it by now. huge technological issues. the first and second stage is where they separate the second

stage. getting these pictures, being up there in reality. romaine: this is absolutely brilliant, absolutely fascinating. when you think about this rocket, it is not just the satellites. communications. a lot of the stuff is a lot to help with farmers tracking climate change. obviously some longer-term missions with regards to resources. there is sort of a practical with all combination of these launches, what nasa, areex, and other companies working towards now. caroline: putting satellites in space to ensure communication. ruling like we do they, putting huawei on

risk list. notably, on a day like that, you then have to wonder what will happen to these rural communities, which huawei has considered as a national security threat, keeping equipment to be able to get access to wi-fi, to the internet. what then of access? maybe the future is satellites. putting satellites into interspace. thing, wehe other talk about musk and what his ambitions are, he has talked about getting something mars. that nasa anding

the previous president had talked about having some toition for you go back george w. bush, also an ambition of the obama administration. atting men to mars will be herculean task. but the technology we are seeing on the screen now will help with that mission. joining us, dana hull, the reporter who covers this for bloomberg. where exactly are we in elon musk's vision with elon musk and what he wants to accomplish long-term with this company? -- i am sure if we have not sure if we have dana yet. we talk about the launches, he'd

-- he not only wants to shoot for the moon, but mars and maybe beyond. argue some ofd the short-sellers argued against him. we believe that conversation for another day. caroline, you have been doing a great job narrating us through the past 10 minutes or so. andtioning navigation timing services. it will bring higher power, more accurate signals, which are harder to jama. i will go back to the comments earlier about some more -- i wonder if we are seeing it land? the conversations about public-private partnership. caroline: the falcon 9, first stage, just read the

instructions drone ship in the atlantic. there is the reusable part of the rocket landing safely back. course is a company not really run by elon musk. ceo,nded it over to the lynn shotwell. we are seeing pictures now of the reusable part of the rocket, the focus on recycling went it comes to the space race. safely seen it land back in the atlantic ocean. >> very much so. spacex was designed from the get-go to make spaceflight affordable and reusable. they have now captured the first stage on land and at sea countless times.

honestly, i have lost track. the customer here was the u.s. military. spacex has now flown astronauts to the space station for nasa. it launches satellites from any commercial operators. and it has quite a good relationship with the u.s. military. gpslaunch today was for satellites for the air force. it goes to show that they kind of play in all sectors of the launch market. romaine: in 2004, it was moving toward a model where they would rely on private businesses. spacex, blueh origin. some of the military contractors like lockheed. , what is universe here sort of the longer-term goal? what are we trying to do here other than just send satellites

up into orbit? >> what is spacex's ultimate goal? quitecex was founded explicitly to make life multi-planetary. the revenue stream comes from launches. toy will use that revenue ultimately colonize mars. nasa, they are launching their own satellites to have a space-based internet system up and running, and i think they will start offering service to rural customers in the northern u.s. and canada later this summer. everyone thinks of spacex as this rocket company, with a ceo who wants to go to mars. a big part of their value proposition is to be an internet provider as well.

where next in terms of spacex and the growth, there was another launch canceled on june 26, an entirely different launch. are we expecting that particular rocket to reenter? dana: the launch manifest often switches around based on things like the weather, rain, just the bandwidth. been -- i don't know if there is a scheduled date yet. but it will come back online. i think it is important to remember that spacex launches rockets on a fairly regular basis. so much so that every launch that they do is not always somewhat newsworthy. rocketstinue to launch for their paying clients. that is the business model. i remember when every launch,

people were wondering how things would go. now, it is quite routine. another thing that has happened, astronauts on the space station will come back. that will be a huge moment as well. caroline: dana hull, thank you for putting that all into perspective for us. let's get to the business flash headlines. yetlix, the largest company to pledge -- american companies have rushed to show support for african-americans following the death of george floyd in police custody. an early coronavirus vaccine study. the company is one of the front runners in the race. they say more than 90% of those showed immune response. amazon is targeting military space organizations as potential users of its services.

they are pouring billions into new users. one of the pentagon's biggest contractors, lockheed martin, already us an amazon customer. romaine: let's turn our attention to uber. the foodalks to buy delivery company post mates. this comes as post mates considers going public. joining us with more, bloomberg opinion columnist. thank you for being with us. whatus a general sense of uber is looking for with post mates and whether this is remarkably different than what it was reported to be looking at with grubhub earlier? >> it is not that different. just taking a step back, the food delivery industry as a whole, they have pursued a strategy that has resulted in passive losses. uber eats lost more than $300

million for each of the last three quarters. that game is over. there needs to be consolidation, rationalization of pricing. also, a deal will help them have some cost synergies. caroline: 30% market share in the u.s. delivery market, we understand, basically a triop oly. is there going to be regulatory concern about this? >> i think there will be less concerns. some analysts were saying that the worries of potential antitrust issues were some of the reasons why uber-grubhub issues were worked out. that does not help the consolidation at all because it is a european company buying a u.s. company. the potential combination of uber eats and post mates will be about 30%.

the combination of uber eats and grubhub would have been 45%. and theysmaller number will be more likely to have less of an issue from regulators. herer: is the goal consolidation, that you don't want others to emerge and leave you behind in a highly competitive space? >> exactly. there are economies of scale here. grubhub was really big in new york. the more market share you have in these individual cities, you have much more pricing power and restaurants have to go to you because users are using a specific site in that city. caroline: we will keep a close eye on the delivery wars. from new york, this is bloomberg. ♪

mark: i am a mark crumpton with bloomberg's first word news. america's top infectious disease doctor says he is quite concerned about the increase of covid-19 cases in states like florida, texas, arizona, and california. dr. anthony fauci told a senate health panel today that some states reopened too early and skipped of that work part of cdc guidelines. still, dr. fauci said he was "aspirational he hopeful" that a coronavirus vaccine will be available early next year. leading republican says that

president trump should start wearing a mask at least some of the time. tennessee republican lamar alexander's comments came as he chaired a hearing of the health, labor, and pensions committee. >> the president has plenty of admirers. they would follow his lead. it would help end this political debate. the stakes are too high for this political debate about pro trump, anti-trump masks to continue. around here, senators and staff wear masks because we don't want to make each other sick. mark: cdc director robert redfield said, "it is all critical that we take -- it is critical that we all take the personal responsibility and embrace the use of face coverings." lawmakers of both parties called on the trump administration to provide more information about intelligence that russians put a bounty on u.s. troops in

afghanistan, with democrats questioning why trump has not responded. the new york times reported today that officials had evidence of large financial transfers from russian think accounts to a taliban linked account. secondly, it was reported that the national security agency disputed the pound -- the information about the bounties made by other agencies. a montanaeinstated scholarship program that allows state tax credits for private schooling. justices said-4, the montana supreme court violated the religious freedom because when -- religious freedom clause when it struck down the program. global news, 24 hours a day on air in on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.

caroline: now, more u.s. retail companies saw grossi protection in the first half of 2020. energy filings, oil prices plunged. with chesapeake energy the latest to file for chapter 11 protection, we want to really drill down into the state of credit. marty, your perspective. i guess it is no surprise that we have yet another key player in the energy space filing. how many more will there be? is it an ongoing path to default? >> energy continues to be the focal point for defaults. the market is saying that we will have nearly a 10% default among speculative grade energy issuers over the next 12 months,

and that is based on the distress ratio. a is a measure that has been good indication of what the market is looking for. comparison, the same analysis points to only a 4% rate, right around the historical average. thatne: can you dig into distress ratio and give us a sense of why we care about that more than others? martin: historically, people have tried to get the market expectation of the default rate out of the yield premium company high-yield index's yield minus the high-yield treasury rate. there are a lot of complications to that. that is not a pure measure of default risk because illiquidity of high-yield bonds relative to

treasuries is also part of that spread. measures whatatio percentage of the issues in the high-yield index are at a spread over treasuries of 1000 basis points or 10 percentage points or more. categoryntage in that that defaults varies according to how high that ratio is. when you work it all out, the energy sector's distress ratio is at a recessionary kind of level of 42%. is annenergy, 13% historically average kind of level. the market does look for a lot more defaults over the next 12 months and that energy sector. that creditknow investors care about the default rate. they also care about the

recovery rate. in the event of a default, mi recouping $.10 on the dollar or $.70 on the dollar? youin: during recession, typically have recovery rate in the range of $.25 on the dollar. during expansions, those companies that default tends to have recoveries more in the range of 60, $.65. you see this historical average of 40% but there is almost never a year when you get 40%. expansionither in an or recession. this time around, there is concern that recoveries could be lower, possibly materially lower than in the past recessions when they were in the range of 20, 20 five cents on the dollar. that, without

tripping a covenant that would companies to be forced into bankruptcy and get the recovery then, the company can limp along for a couple more years before it finally keels over. that is a very real concern among investors currently. the new: you talk about flood of issues that have been coming onto the market, i know that you see market volatility come back. but we did see plenty of new issues down into high-yield. have we seen the protection for investors cleaned up somewhat? thein: no, unfortunately, covenant strength, which is tracked by moody's on a scale of one through five, from strongest to weakest, and i do a variation

,hat singles out the impact that series shows a long-term deterioration since it began in 2011. it has resumed its decline. is correlated with the volume of insolence. recordjust completing a month of high-yield volumes thanks to support of the federal reserve and the credit market. awayrs are able to get with more than they can when barding -- when bargaining our is more in the hands of investors. romaine: we have a tracker on the bloomberg terminal.

caroline? caroline: let's get out to what we are going to be looking at in terms of planning a restart. cirque du soleil filing for bankruptcy after being hit hard by lockdowns around the globe. we will talk about the turnaround plans with the ceo, next. this is bloomberg. ♪

caroline: the u.k. has seen less of an economic contraction than expected with the pandemic. however, according to the barclays ceo, the u.k. still not

in the clear. a i think there is sort of gathering storm. the furlough program, quite amazing to watch in how significant the program is in the u.k. and how that has buffered the impact of this incredible medical crisis. but the government has been very strong in terms of putting small business loans out, guaranteed by the government. we ourselves have done over 200,000 small business loans in the past couple of weeks. about 6.5 billion pounds. all the way to major commercial paper programs. we have done over 10 billion pounds of that type of lending as well. been quiten has strong. we stay focused on the financial integrity of barclays. barclays being a very strong, highly capitalized bank, is critical if we are to play our

role in helping the u.k. and the world recover from this virus. we were fortunate, we walked in with the highest level of capitalization in the history of barclays. very liquid. i thing we had the strength of a very strong balance sheet. a profitable underlying business. hopefully we can be a firewall. >> as you look at the deterioration of the u.k. economy, is it worse than expected? contraction inhe the economy is probably less than what we would have expected or anticipated a month or month and a half ago. spend is not down as much as it was a month ago, aided by the government programs, the furlough programs. i do think there is a storm gathering. we have 90,000 mortgage payment

holidays out there. we have given payment holidays to credit cardholders. you have the furlough program. a lot of that will start to end as we come into july and the early part of august. it will be interesting to see what happens with the furlough program. we are not out of the woods yet. i think we have recovered more right now than we would have thought a little bit ago but there is that second storm coming. >> earnst & young is under the gun here. there is clearly a massive missed audit at wirecard as well. i want you to speak to the rigor of auditing at barclays. do you feel there is any mystery on your book in relation to wirecard. do you think the auditing is tight enough on certain things? >> we started taking a conscious approach to wirecard quite some time ago. again, very mindful of -- >> wait, wait, wait -- some time

ago? like last thursday or a few years ago? >> i would say a long time ago. not last thursday. wirecard did have questions before. we have been conservative in how we dealt with them. a very big business in the u.k. as well. it is a very tough situation. obviously, it seems like something big was missed and i think the price -- the markets will pay a price for this. romaine: let's turn now to cirque du soleil. terminatedoronavirus shows around the world, they entered bankruptcy and entered an agreement with shareholders. the president and ceo of cirque du soleil, daniel lamarre, joining us now from montreal to discuss the company's plans to

restart business. obviously, your business was basically shut down because of all the coronavirus lockdowns. can you just start, telling me, what is your outlook to get all of your production up and running? >> first and foremost, we have to be realistic because nobody knows when the society, when the planet is going to be back to normalcy. have based and we our business plans to shareholders to the fact that we will not be able to start bringing back shows before the spring of 2021. that is why we feel very lucky that people are willing to support us for that long period of time without us having any

revenue at all. caroline: i have to say, sort of personal interest for people set at the desk here. my husband proposed to me after ray sir salai event. -- after a cirque du soleil event. romaine used to work putting up tents for sir salai. -- for cirque du soleil. daniel: the fact that we have by ourn protected creditors. shareholders have created a fund of $15 million to help them go through this difficult time. the fact that they are supporting in las vegas. because we think our opportunity will be to first start our shows in las vegas because our cast and crew lives there. for our touring show come april

be much more complicated because our cast and crew -- for our touring show, it will be much more complicated because our cast and crew comes from 50 different countries. taylor: are you willing to perform in front of a crowd that is half-full or do you want to be sold out for the effect and environment that creates? >> we want to go progressively. of ourk we can open some signatureshow -- our show, a breakeven of about 40%. the real key for us is to go back to normality. i have never been so interested about science because when they will be a vaccine or a cure and

we go back to normality, that is when cirque du soleil will be able to rock again. romaine: in the interim, you have to work through the restructuring. there has been some criticism from some of the creditors out there that may the bankruptcy filing came a little bit too quick and there was not enough negotiation in advance with some of the debtholders. daniel: we have 45 days ahead of us where everybody has the opportunity to come to the table with offer. creditors have a key role to play in this. the creditorshat will sit down with our shareholders stakeholders. solution, finalizing it. because there is a proposal on the table, a very serious proposal coming from our

shareholders, i can say to you and all of our employees that the survival of cirque du soleil is guaranteed because our stakeholders want us to go back to business because they know that when we go back to normality, we will go back to profitability. normalitydo you think will be the same as in the past? you think people will change their view on how they want to participate. is it something you can do looking at home entertainment? how are you going to make this business fit for the future if one day sadly a pandemic unfolds once again? i think people are looking forward to going back to human experience.

i believe that the one day we go back to normality, people will rush back to human experience. right now, we are all in the mind frame that we are scared and rightly so, but when we have a cure or vaccine, i think people will be really looking humand to going back to experience. taking: thank you for the time out of your day to speak with us. just a programming note. join bloomberg for our annual broadcast of the boston pops fireworks spectacular, july 4. fourth of july tradition for the orchestra. you can enjoy it this year from the comfort of your own home. that will be at 8:00 p.m. eastern time. you are watching bloomberg. ♪

romaine: normally at the top of the show, we have joe weisenthal in austin, texas but he needed time to rebalance the portfolio, so he is rejoining us at the end of the show. what have you been watching? boston -- joe: a lot of interesting end of quarter rebalancing. for as much as we talk about tech, the story of this quarter was largely in the beaten up sick, having extraordinary rebounds, things related to the real economy, small caps, value. i started watching the small cap restaurants, the restaurants in the s&p 600. hard to imagine a worse sector in q1. buster's, dave and things like that. restaurants you actually have to go to. it is off the highs of early

june but it sort of spoke to how much the q2 rebound was driven in large part by the much depressed areas of the market. caroline: concerns -- i keep on signing it, but bloomberg intelligence saying that from here on out, we are in a recovery phase about earnings, fundamentals. where do we go from here? joe: i think that is right. the fact of the matter is that covid is still with us, arguably worse than ever. we just don't know what the trajectory of the real economy is going to be like. restaurant stocks down 11% since early june. that is kind of the striking thing. the quarter was so incredible. even by the end, we have lost a little bit of momentum i think there is a reality we have to confront. we don't know what will happen

with the next phase of the stimulus. we don't know when we will get the virus under control. it will still be a real drag to economic activity. caroline: joe weisenthal, stay safe out there. joe'srse, don't miss exclusive conversation with paul krugman, tomorrow at 4:30. that is all for "what'd you miss?" technology"omberg is next in the u.s. romaine: this is bloomberg. ♪

♪ emily: welcome to "bloomberg technology." stocks surging on the final day of the best quarter for the markets since 1988. investors assessing better than estimated economic data. this one specifically focused on consumer confidence. also amid concerns of course about rising cases of covid-19 the s&p