caroline: as the bell starts to ring, it has been a good day for markets. now back in the green for the year, up 0.3%. really, it is all about tech. 70% year to date. -- 17% year to date. romaine: it will be interesting tuesday and wednesday because a lot of people may pause ahead of that fed meeting. today, a pretty good day. a lot those tech stocks up. tesla up 8.5%. to the downside, hasbro, no one is buying toys. down 7%. caroline: i have been buying way too much plastic fantastic for the garden. keyd of some of the

technology companies coming up in front of congress. we know that mark zuckerberg will be taking questions and even delaying earnings. taylor: we are speculating here. we don't know why they have not confirmed that but we assume they are those hearings delayed from today. stock market reactions, so priced to perfection. unless you are revaluing them, the strongest balance sheets, because we are in a's -- in a structural change, they are the only companies growing 20% with 30%, let's say you get a beat or meeting expectations, the market reaction has been a little bit to the downside with some of the smaller tech companies. is market reaction post that interesting but a week later we forget about what happens after earnings.

caroline: microsoft was down after earnings. tesla had a big selloff last week. sherry, we were talking earlier about the weakness of the u.s. dollar. how much is that starting to have you looking outside of the united states? we had a call for getting into emerging markets. where are you looking outside the united states? sherry: i think any u.s.-based think long andto hard about international exposure, even if there seems to be a little bit of wind at the back in europe. they are just passing their package, it is a manufacturing-based economy, export raised. they have a lot of work to do. it has not really been instituted yet. that combined with in the united states, if you are an income investor, why take on the currency risk if you can

continue to look for sector opportunities in the u.s. that will pay you more than a 10 year treasury? right now, the tech sector is many times the 10 year treasury. the difference with the comparisons from 2000, these companies actually have earnings. they have earnings, they are innovating in pockets of distribution that have been proven. 2000, 2001, a lot of those premiums were based on earnings that were not real. i think that is the big oference here, just a kind dovetail on your previous conversation. i would stick to the u.s., look for second is that are paying you income. extended duration.

if you are going to buy a 10 year treasury at a half a point, why would you not own a great u.s. company paying a dividend with a big cash balance sheet? taylor: talk about those calls for lower yields for longer on the u.s. dollar. jp morgan lowering the forecast to 80 basis points for 30 years. assuming lower for longer and dollar weakness? sherry: it sure feels that way. we are starting to hear the s-word, stagflation. manager, over the decades, i think you can't rule alphabetletter in the for investors, that means you choosy aboutry

where you are putting money in the market. financial crises get reflected in stock markets. credit markets caused them that is why the fed has been taking so much time shoring up the credit markets. that is why i think we will see stimulus out of congress so people have money to spend and cover mortgages. long gains here, lower for longer. it seems very intuitive and common sense. i think we have to move into acceptance and understand how to navigate those waters. romaine: only a little bit of time. i'm curious as to your thoughts with the fed. crisis, financial coordination between the global central banks. this time, it seems like banks are just going on their own. does it concern you at all that we don't have coordination on a global basis?

the idea that we can have economic growth in one country but not necessarily another? sherry: it does. my instinct is the reason for this is that last go around, they tried to coordinate and it took so long because our monetary systems are set up differently. the fed can do whatever they want whenever they want with however much money they want to do it. they are not having to come up with a body to vote on a solution. experience tells me that the fed looks back on that like, we are not going to do that again. we can move quickly and we are going to move quickly. maybe there is an opportunity for the world to play catch-up together. right now, it kind of feels like everyone is kind of hanging their hat on the backseat. at some point, they will have to coordinate.

that obviously affects the political environment as well and global stabilization. caroline: thank you so much for joining us today. stay well, join us again. that does it for "the closing bell." "what'd you miss?" is next, where we will be looking in on the next round of stimulus. this is bloomberg. ♪

caroline: from bloomberg's world

headquarters in new york, i am caroline hyde. you missed a rally led higher by technology. we offset some of last week's losses. s&p 500 back in the green for the year. meanwhile, it is a shopping spree. some of the biggest u.s. tech pot -- tech companies seeing acquisitions at the fastest rate since 2016. stimulus showdown. bloomberg has learned that senate republicans could propose cutting unemployment benefits to $200. a week first of all, taylor, take us through the moves are particularly dollar weakness. taylor: i am showing the short is a shins, given the futures market on the dollar. take a look at this. on the right side of your screen, you are seeing six weeks

of further dollar weakness. you really wonder how much of or is thereed in, more weakness to,? ome?o c quick -- >> thanks for having me. near-term, absolutely. the stars have aligned against the dollar right now. what really got the ball rolling was the fed's aggressive easing and balance sheet expansion. we saw similar dynamics in 2008 and 2009. think adding to it now is the fact that it looks like the virus numbers are really going to impact growth in the second half. everyone is pricing in a rally. particularly in europe and

china. headwinds, and i think that will hold back the dollar. there is expectations of further fed easing. all of the stars are aligned against the dollar. romaine: when you look at the growth expectations, yield expectations, it does make a compelling case to go short the dollar. i think back to 2018 when we had that downturn in the dollar. that only lasted for a few months. i wonder, given how fast the shift has been to go short the dollar, could we see an unwind of that trade should powell say the magic words? >> there are so many crosscurrents and so much uncertainty going on. it is very rare, but the european economies are likely to

outperform the u.s.. it is just going back to the virus, many states reopened too soon. the numbers are going up. until we get the virus under control, it is hard to imagine how the u.s. can catch up. that another quarter this virusl we get numbers down. the fed has been the most aggressive, really planting the seeds for a good recovery in the u.s. interested in what time dollar decides it will be the haven of choice and what time dollar decides it will be under pressure. today, we are worried about coronavirus but it seems more hopeful about the federal reserve. what could flip us to once again

being panicked and wanting to buy the dollar instead of salad. >> -- instead of cell it. that the laste hasral risk off trading been more for the yen, swiss franc, and with gold. havens could be the ones of choice. correlations change, relationships change. for now, i don't think the dollar will benefit much as a safe haven. the fed has flooded the world with dollars. ample liquidity. taylor: you mentioned gold. lastme you say gold the few weeks, our ears perk up. you talked about correlation against higher inflation. how much of gold is a hedge against weaker dollar, lower

rates, and coming inflation eventually if we ever get it? >> i would downplay inflation. we are just not there yet. we don't see any inflationary impulses. haven, alays a safe lot uncertainty. it is more of those factors. if you look at breakevens, they are about back to where they were in march. the other thing i would also note, it used to be you had an opportunity cost, giving up yield on a treasury or what have you to hold gold. but with negative rates, you are almost being paid to hold gold. romaine: a lot of allure. caroline is still in digital gold. i think taylor has been investing in podcaster.

this stimulus package, we are waiting to get word later this hour about whether this bill republicans are working on does advance. the basic details so far, it will basically be an extension of the stimulus out there but not necessarily to the fullest. if it gets done, do you think that will be enough to be that bridge from where we are now to the other side? or do we need to see a little bit more on the fiscal front to get us through this? >> that is a great question. if you ask me a month ago, i might posit an optimistic may be. given how bad we bungled this crisis, i think we need much more. going from $600 a week down to perhaps $200. that is a lot of disposable income that has basically been

cut. tens of millions of people out of a job. my gut feeling is that more needs to be done. politics come into play, obviously. congress goes on recess in august, the election comes up in november. so this may be the last package we see before the election. we may be inimid, for more serious headwinds/ caroline: i am interested -- the adage goes that the dollar goes down, emerging markets benefit. i'm interested in how much the brazilian real is up on the day. that is a country that has also been not handling covid well. i am interested whether dollar weakness will always be emerging markets again, or if there is the --use with

continuing to unravel? trs page, goyour w to the year to date, and you will see the differentiation. resilient, -- brazilian real, turkish lira, they are up there. some markets are better than others. as this rally goes on and on, i would think investors get more discerning and not just going for high liquidity big place. they have to be very careful going forward. the u.s. has been part of that global growth story. yes, we are underperforming, but the world needs the u.s. growing and close to potential to get out of this global rout. that wessing my fingers can get these numbers down. romaine: i think we are all

crossing our fingers. win thin, brown brothers harriman global head of currency strategy. a programming note. you can tune in to bloomberg special coverage of the fed decides on wednesday at 2:00 p.m. new york time. coming up on this program, antitrust scrutiny is not stopping big tech from buying up rivals. the surge in acquisitions this year. that is coming up shortly. this is bloomberg. ♪

romaine: you are taking a look at the senate floor in

washington, debating what could be the next round of fiscal stimulus. a lot of folks are dependent on the provisions set to expire in the current stimulus. we will get you more on that this hour. it is 97 degrees down there. the biggest u.s. technology companies. amazon, alphabet, facebook, microsoft. the number of acquisitions by the five largest out there came ofat half the pace in june 2017. to help us understand why there are so many deals taking place, we want to bring in antitrust reporter david mclaughlin. thank you for being here. can you give us a general sense of whether we should be surprised by these numbers? i believe the number of

announced deals of these five names, 27 in the first half of this year, up about 30% year-over-year. david: we looked at data through the first half of the year and it shows that the companies are definitely not slowing down there buying. i think it is surprising because these companies, may be with the exception of microsoft qamar under really intense scrutiny -- of microsoft, are under really intense group. four of the ceos will be testifying on capitol hill as part of a house investigation that has been going on for a year. later this summer, we could have a justice department lawsuit against google. they have been much more aggressive, but they are looking into apple and

amazon. it is surprising because, despite all of that scrutiny, they are just buying away. that has been one of the concerns about these companies. caroline: buying away, but we have not had such a pinup deal such as facebook eyeing whatsapp yet. are these smaller deals? ared: most of these deals smaller. they are deals that the values have not really been disclosed to investors. in some cases, it is hard to know exactly how much money they are spending. you are right, these are not like the headline grabbing deals. but they are still, for some people, these deals are still becauselly concerning there has been a lot of worry

that the big companies have been able to buy small startups that represent future competition. some economists, lawyers, they say, have been able to use these deals to stop competition before it becomes serious. taylor: i think what is so interesting -- i just spent six months in san francisco -- and no one said this explicitly but big tech was going to do big deals because they don't care about the regulators. to the regulators not care they are making these acquisitions and does big tech not care what regulators think about these deals? good point.is a i think big tech, probably from their point of view, there might not be much of a reason to stop doing deals.

essentially none of their deals ever have been stopped or challenged in a significant way. the other side of this, despite all the criticism, the scrutiny, eu justice department and have not tried to stop any of their deals. there is plenty of criticism in the u.s.. in the eu, regulators need to do more to challenge these deals. we are seeing currently an interesting move from facebook. the battle goes on not only of the u.s. but also across the borders. on a programming note, chief executives at facebook, alphabet, amazon, and apple are set to testify at a rescheduled hearing before the house. live coverage on wednesday -- on

thursday at -- on wednesday at noon eastern time. more on thursday, because that is basically when they are all going to be giving us their earnings. facebook postpones the earnings release because zuckerberg will be giving evidence. romaine: when you get into those earnings on thursday, and a lot of second-tier tech empties reporting that day. when you have this kind of run up in shares and forward valuation, you have to wonder if they will back that up taylor: one thing we heard from sherry paul is that it is different from 1999-2000 because you don't have these companies that don't really have profitability, that are not sure what the -- these are companies with real shares

growth, real earnings growth. we will stay with that as we continue. this is bloomberg. ♪ ♪

leadere: senate majority mitch mcconnell is expected this hour to release a pandemic relief proposal. it will aim to expand supplemental benefits -- supplemental unemployment benefits, a new round of stimulus checks, and funding for schools if they reopen. something to finally be debating. a far-off number the $3.53.5 met -- trillion or so proposed by the house. >> senate majority leader mitch mcconnell left the floor a

moment ago. he basically came out and made an opening bid. he is talking about cutting supplemental unemployment insurance benefits from $600 to $200 per week. there is talk of another round of direct payments of $1200 to consumers. billion to schools and universities. he is sort of framing this as kids, jobs, and health care. one foot in the pandemic, one foot in the recovery. basically the opening bid. treasury secretary steven mnuchin and nancy pelosi of the house will meet at 6:00 p.m. to hash out the democrats approach on this. romaine: it is interesting that they wait this long. the last $600 unemployment

checks have already gone out and if they don't do something by the end of the week, a lot of folks could have a gap before they get their next check. the timetable on this seems very tight. of hurdlese a number to clear. not the least of which is selling this with the republican party. senator ted cruz told reporters that there will be a lot of opposition from senate republicans, who don't want to see the government spending more money. senator mcconnell and the republicans, they need the democrats to get this over the finish line. agreement,come to an we don't know, but it is clear there will be fire coming from all quarters. taylor: one of the real hangups has been how much the extra unemployment insurance has disincentivize workers to come back to work. a study from yale shows that

$600 per week does not make americans work last. anecdotally, state and local governments are saying their small businesses are having a hard time bringing workers back to work. what are you hearing about the debate within $200 per week and $600 per week and if that is truly the amount that will get americans to go back to work? of debate on lot this. saying they can't come back because they are making more money at home there is also concern from those workers that they don't want to get sick. they are staying at home because they are making more money, or are they wary of contracting covid-19 and that is one of the

reasons why they are staying home there is a lot of sort of conflicting data on that. what is clear is that democrats do not like what the republicans are proposing they do not want to see supplemental unemployment go from $200 per week to $600 per week. we will find out after the secretary of the treasury steven mnuchin and house speaker nancy pelosi meet at 6:00 p.m. tonight. caroline: we have senator schumer perhaps speaking some words of concern about the proposal from the republicans. i am intrigued about the timeline and how much the race has been really on. nancy pelosi has been playing hardball, saying she does not want to see in the interim deal struck because it takes away from her leverage. >> that is definitely her

position and the democrats position. there is a side deal out there to extend supplemental unemployment insurance, that $600 per week, keeping that at weeks,vel for 2, 4, 6 enough time to get that larger bill or some other proposals through. right now, there is no indication whether that is moving one way or another. but that has been floated out there. we should know more over the next few hours, or next few minutes really. senators will be coming to the floor and really unveiling their part of the package. that is kind of healthy cares act -- kind of how the cares act came together earlier this year. we may get a better sense of what some of the bigger priorities or more long-term priorities are, and whether there is a side deal that can be

worked out. romaine: the inner of the u.s. congress, not always fun to watch. dan, things for is that update. let's get over to mark crumpton with the blumberg first word news. mark: the body of the late congressman john lewis returned to the u.s. today, where the georgia democrat, widely praised as the conscious of congress -- conscience of congress, lied in state. congressman lewis will lie in state for just a few hours. a public viewing will be held on the capitol steps. among those honoring congressman lewis today or house speaker nancy pelosi. pelosi: here congress, john was revered and loved on both sides of the aisle on both sides of the capital. we know that he always worked on

the side of the angels and now we know he is with them. we are comforted to know that he is with his beloved lillian. mark: the congressman was a widower. his wife died a few years ago. diagnosed ins december with pancreatic cancer, was 80 years old. they bag found with rifle magazines during a peaceful protest turned into an intense confrontation earlier this morning. federal agents fired what appeared to be teargas, flashbangs, and pepper balls before don to clear demonstrators from outside of the courthouse in portland. demonstrations also turned violent in richmond, virginia, austin, texas, and aurora, colorado. the democratic convention will feature speakers from around the

country broadcast in prime time. the televised version will include live speeches and produced videos broadcast from cities and landmarks around the country. the convention will be held from august 17 through august 20. the pandemic continues to spread around the world. the world health organization says the number of cases globally has doubled over the past six weeks. there have now been more than 640,000 deaths worldwide. the head of the agency said today, "we are not prisoners of the pandemic. every single one of us can make a difference per coping -- make a difference." 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. ♪

romaine: we are awaiting word from washington, the senate specifically, about that gop stimulus bill. they are debating it in congress. that is democratic senator chuck schumer weighing in. we have already heard from senate majority leader mitch mcconnell that the stimulus proposal will focus on health care, economic assistance, liability protection, and schools. there is still debate about

whether some of the provisions from the last bill will be proverbial -- will be preserved in full. , stanford university professor and hoover fellow, joins us now. lastt to go back to the stimulus bill. there was a general consensus among democrats and republicans that something big needed to be done and need to be done fast, and the long-term consequences did not necessarily need to be debated in that moment. this time around, you have some of the fiscal conservatives a little more concerned about the deficit spending. even on the democrat side, you have a lot of folks in the democratic party pushing certain items they were not able to get done in the first round. do you think we will get the kind of consensus we had on the first couple of bills? lanhee: i do not.

i don't think the consensus will be broad. i think we will end up with a narrow package that addresses some matters of immediate concern. the last package was a function of the sort of severe economic crisis that we were in. it was a function of the fact that people felt on capitol hill that they need to work together to get this done. where we are now is in a different place. i think people feel that they have a little bit or breathing room -- little bit more breathing room. you are seeing democrats saying, we want a bigger package, more spending. you have republicans saying, we don't want unemployment insurance to extend in a way that will prohibit people from going back into the labor force. those things are playing a bigger role. caroline: how much is the election playing a role?

lanhee: it is huge. we are 100 days away from the november election. the political factor of the democrats wanting to play it to their advantage, the republicans wanting to play it to president trump's advantage, those are factors. that is why at the end of the day, i think we will end up with a limited approach. that is roughly where mitch mcconnell's head is at. it will be tough to get there. taylor: every guest we have on talks about stimulus. i have been asking this question to kind of get a gauge about where we stand within small businesses. it has been tough to get workers back to work because they are incentivized to stay home given that many make war on $600 per week -- make more on $600 per week than $200 per week or so. what is your research telling versusut $600 per week

$200 per week, or let's say in the middle. there is a political challenge here because democrats are saying, you have people who are still unemployed, we need to support them. the republicans are making a more nuanced argument, saying they want to support them but make a pathway back to work. that is not a campaign slogan you can put on a bumper sticker. substantively, i think republicans' heads are in the right place, can we transition down to an amount that will force states to put in place a more sophisticated unemployment system, that is hard to explain. republicans may be pressured into accepting more than they want. i think republicans are in a tough clinical position on this argument.

romaine: you have worked on campaigns so you sort of understand why people vote. this pandemic and the recession that came out of it, it exposed a lot of gaps in our policy in the united states. our voters in tune to that? policyy in tune to those mistakes enough that they will vote on that issue? lanhee: i think they are voting on the perception of competency. not on how elegantly solution is or whether we have liability protection, although those are important things for job creators. what voters are focused on is who seems to be getting the job done? right now, there is a case to be made that both sides are falling down on the job. both republicans and democrats can blame the other side.

at the end of the day, what hurt president's polling numbers over the past few weeks is the perception that he has not handled this crisis in a competent fashion. caroline: particularly as it has been republican states of late that have been hit so hard by the ongoing wave of covid. i am interested in any optimism you have for compromise here. we have chuck schumer, live pictures of him basically blasting this plan. he is speaking about how they for offer piecemeal ideas stimulus. they must pass the democrats stimulus plan overall. he feels that, with that, you will continue to see poverty made worse. what hopes do you have for nancy pelosi saying they will find common ground? lanhee: i think this will follow the very typical washington

playbook. both sides will continue to posture, both sides will make remarks that seem broadly disingenuous. we are not passing the democrats plan through the senate in the same way that democrats are not going to agree to mitch mcconnell's plan. both sides will posture, it will go down to some kind of a deadline, most likely when congress leaves town again, then they will get something done that is very limited. that will probably include something around unemployment, something around liability protection, that might even be it. maybe something around state aid. we are not going to have some grand bargain here. taylor: keeping us updated on the latest, as always, lonnie chan. thank you. let's get a quick check on some of the latest business flash headlines of what else is making

news. mark zuckerberg set to tell congress that facebook's success is patriotic. he will testify wednesday before the house antitrust subcommittee. joining him will be the heads of amazon, google, and apple. he will tell lawmakers that hindering american technological innovation only helps china. ipo of software units. it acquired the company less than two years ago to compete with salesforce. s.a.p. will keep a majority interest. forecast says that u.k.'s unemployment rate will peak at the end of this year and will not be as bad as the u.s.. according to goldman sachs, the british unemployment rate will hit 9.5% in the fourth quarter before declining. they predict a 13% unemployment rate here in the u.s.

goldman sachs ceo david solomon was back in action over the weekend, but not on wall street. he was in hampton where he was on stage for an hour for his alter ego d-sol, the dj. going toy you one it see you dance as your alter ego dj. caroline: you know they are $10,000? i am taking that. but those pictures may have been last year. those are socially distanced. taylor: of course. romaine: have you listened to his music? caroline: dubstep? the best music that any ceo of goldman sachs can bring about, i am sure. makeure we would all pretty ok djs. i feel like romaine would have the best collection.

coming up, more reaction as we await the stimulus bill. joe weisenthal joins us. this is bloomberg. ♪

go down to want to joe weisenthal in austin, texas. 94 fahrenheit, winds to the northwest at about five miles per hour. hotter than a dj d-sol party. i guess we want to start off on this stimulus bill. i want to read a quote. the proposal that the republicans put out there is this sort of wage replacement where you take the $600 and peg it. a lot of states said they don't really have the capacity to do this. in a bloomberg news story, mark butler, bloomberg labor commissioner, and he is a republican, and he said this is

the dumbest idea ever. are they going to get this done? of: i think the idea targeting unemployment insurance as a percentage of prior wages is not a horrible idea in theory but in practice it is essentially impossible. that is the whole reason that put in inxpansion was the first place. are byzantine,ch complicated, built off of programming language from the 1970's, are not enough to do targeting wage replacement. the averageing worker up roughly to parity. i don't think, in the end, given this challenge, that there is likely to be a complicated formula. 70% is not that complicated, but relative to our state capacities, it is apparently

extremely complicated. caroline: it is all going to come down to certain numbers in the end, but it will all come down to the pressure. the hardest hitting states at the moment are the republican ones in the sunbelt. how much do you think this will change the usual political dynamics or is it all eyes on the election? joe: i think it is all eyes on the election. i really think if you look at the republicans who want to vote for it, it is candidates who are up for reelection and recognize that cutting people's unemployment insurance is probably not a great look several weeks out from the election, even more than red states or blue states, per se. i think there are a lot of republican senator's were very much of the view that the one thing holding back the economy

are these expanded checks, that is the reason people are going -- are not going back to work, and that is a reason to vote against expanded spending. that is a widely held view within the congress and any deal will have to overcome that ideological opposition. caroline onet bet bitcoin to see her alter ego. bitcoin is that $10,000. where does it go from here? joe: i was surprised the past few months, everything was rally , plenty of stocks, robinhood, special purpose vehicles that don't have a company, electric vehicle companies that don't have a product until 2050, and i aren't people buying bitcoin? dj on the deck with

us. that is all for "what'd you miss?" "bloomberg technology" is next. romaine: this is bloomberg. ♪ hey, kids!

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emily: welcome to "bloomberg andnology," i'm emily chang san francisco. market ending in positive territory as we wait for republicans to unveil the next round of their stimulus plan, likely involving producing when it benefits significantly. there you are, you can see the senators continuin