2000. there is just so much value still left in these big names. romaine: we hear the closing bell, pretty much ending the day not far off some of the highs. ,ost of the gains on the s&p dow, nasdaq, and russell were pretty much locked in before the fed started speaking. codec obviously one of the biggest gainers money percentage basis. amd up about 13%. l brands up about 30% on the day. can't get out of the barn here. risk,ne: it speaks to the russell out more than two percentage points. it really is this question of where you go with this market.

who outperforms when it comes to the small-cap. taylor: we tech about the theme of the week, theme of the month. back into gold and further out of dollar weakness. i heard you ask that really smart question about the dollar a few institutional banks trying to question that idea. that, thatr told you the dollar is for now still the reserve currency, at least in his lifetime. big picture when we talk about flows, that will be one to watch. romaine: let's bring in linda. we are inthis market right now, at least off some of the record highs of the

industry? is this a market you want to buy and hold or do you become more of a trader in this environment? linda: i don't believe that any of us are particularly any good at being traders. it is an unprecedented time we are living in right now. we still have very high unemployment. we would like to have more belief that the virus is under control. i think powell made that comment to us as well, that the virus is going to decide much of this. bulls on the stock market because we believe this is going to be a temporary thing. our policies are doing the right thing to bridge us through these tough times. idea, ever heard the don't fight the fed, do the math. all around the globe, don't

fight the fed. very dangerous to be a bear in here. taylor: i know you are bringing us from the perspective of an investor, but you are also talking about bonds earlier. thehe fed is in investment-grade bond market, if you can't fight the fed come also have to be in that bond market. linda: we would never suggest anyone has to be completely out of the bond market. are we rooting for yields to go negative? yields are very, very low. it is tough to get bullish about investing in sovereign bonds, particularly for the negative ones out throughout the world. heighteneding for is

inflation expectations which is hopefully what the weakening dollar partly indicates and what goals going up partly indicates. growth back value and forth has been going on, people thinking this is it, this is it. if it really where it, then you want to get seriously bullish on stocks. onoline: seriously bullish u.s. stocks? weakening, time to look outside what has been the winning trait of the decade, staying home? that all one believed around the world we were going to get out of this virus situation. and we feel don't fight the

central banks all around the globe, you have better value. if you believe the dollar is really starting a decline after being up so strongly, even emerging markets look very interesting. it is very bullish for europe, area to such a thick invest in. they are working together in unison to borrow money, to put them in the country that needs the most. that is great news for europe and great news all around. been team usa for at least 10 years now. romaine: always great to have you. linda duessel. earnings crossing the wire right now after the bell. numbers of course, to q coming in above estimates. of $.70.s the estimate

adjusted eps numbers coming in at $86.70. 70 --tion, 86 versus the versus the 70 estimate. the midpoint of analyst estimates was for 113. caroline: fascinating. keeping us on the theme of tech, breaking down the qualcomm numbers. let's say that does it for "the closing bell." "what'd you miss?" is next. we will be getting reaction from other movers and shakers in washington. today is all about the technology leadership. both markwould seem, zuckerberg and the amazon ceo jeff bezos a little bit rattled from some of the democratic question coming from jayapal. a silicon valley lawyer will be

joining us. microsoft, oracle, and the like, he can give us his experience on what he thinks is currently being achieved or not achieved on capitol hill. this is bloomberg. ♪

♪ caroline: from bloomberg's world headquarters in new york, i am caroline hyde. taylor: i'm taylor riggs. romaine: i'm romaine bostick. this is "what'd you miss?" caroline: tech stocks leading higher.

applekes of amazon and the and questioned on the hill but also being able to lead the charge on the s&p 500. the fed stands packed. the central bank leaves rates and guidance unchanged. the path of the economy will shape the source of the virus. has your kitchen become your own workstation? we speak with the ceo of one of the world's largest content delivery platforms. romaine: great narrative going on with akamai and they work from home stocks. qualcomm, of course tied completely to that 5g rollout, they are out with earnings. eps number coming in at $.86 versus an estimate of $.70. they did give a forecast. range, shipments, the

145-165. the company did so to reiterate some of the process on 5g and announcing a huawei license deal. , apple as itsed biggest supplier, up in after hours trading, adjusted eps at 150. not giving guidance but q2 revenue coming in well above estimates at about $155 million. tele-dock, one of those stay-at-home type of stocks that had really gotten a big pop, quarter ebitda for the coming in just above what the street was expecting. not just earnings, but what is happening in terms of lawmaking.

lawmakers have been questioning all day the big tex ceos. are all abouts connection and our business model is advertising. we have faced intense competition in both. >> we have fierce competition on the developer side and customer side. it is so competitive, i would describe it as a street fight for market share. vigorous competition, be it travel, real estate. >> we don't have a dominant share in any market or any category where we do business. >> history shows that if we don't keep innovating, history will replace every company here today. four big antitrust battles. gary reback, great to have you with us. they are talking about competition, trying to fend off

the argument that they don't have enough competition. very much part of them coming down on lines of privacy, the alleged liberal bias. are the questions landing today? gary: i think so. the clips you showed were from the opening statements, where they were not questioned as they were given those statements. the questioning started very harshly, in my view, particularly the democratic members of the committee, reading internal documents that they have received and contradicting the ceos. so, it was a very difficult , for thesion, i think ceo of google. then the committee focused on mr. bezos specifically. let's focus on tim cook.

romaine: pramila jayapal, who of course represents the district in seattle that includes amazon's headquarters seemed to have the most pointed criticism during the hearing. evidencethe anecdotal , thatas been out there amazon has in some way taken and usurped their products. is this a line of questioning that could come back to bite amazon? seattlengresswoman from , in the past, they have tried to push her around. she has ended up being a very harsh critic. the chairman.did the gist of the argument is that amazon uses the confidential

data that these merchants provide through their platform. amazon get that information and uses it to make competing products, in effect uses it against the very merchants on their platform. denied thatnally undergrowth. day andad a field denied this. , his position basically was, we are looking at it. he has had months to look at it but that is his position. taylor: you mentioned tim cook receiving less harsh questions. i wonder if that is because tim cook has managed to maintain a positive relationship with d.c., with lawmakers, with the president?

is that impart what is contributing to this or is apple likely to face less antitrust and data concerns that other companies might be facing? gary: i think it is more the latter. you are certainly correct that mr. cook has been out there and has fostered a great relationship with d.c.. -- thethis situation hearings are still going on. of, to this point, the kinds accusations against the other three platforms are not quite the same and not quite as biting as the accusations against apple. argue, iis able to think, that apple is simply preserving quality. he can do that anyway a way that the other platforms have difficulty doing. caroline: at the end of the day, will policymaking change any of this? do the laws need to be

rewritten? do they need to be enforced in a harsher way? is come -- is competition not strong enough and does it need to be tackled by lawmakers? gary: some of us in the antitrust community think that there needs to be better laws, new laws. many others like me think that the first step would actually be some enforcement. as the committee has pointed out, they are violating the laws left and right. they are contradicting what their own documents say. then why hasn't the government sued them to this point? i think they are fearful of a lawsuit because unlike lawmaking, a lawsuit is conducted in the public. the press covers it. the ceo would be cross-examined in an open court. but if you are not going to enforce the existing law,

perhaps the best alternative is to create a new law. romaine: gary reback giving us that halftime report. that hearing of course still going on in washington, virtually at least, at the house committee. atpayments volume coming in $221.7 billion, above the street estimate of about 208. paypal saying this is their strongest courtly performance in their history. we will double check that, of course. we will be back in a moment. from new york, this is bloomberg. ♪

>> we remain committed to using our tools to doing what we can and for as long as it takes to provide some relief and stability, to ensure the recovery will be as strong as possible, and to limit lasting damage to the economy. the path of the economy will depend to a large extent on the course of the virus and measures we take to keep it in check. toont to stress, it is early to say how long that is and how sustained it will be. the effects have been especially severe for lower wage workers, for women, and for african-americans and hispanics. the steps taken so far have made a critical difference to families, businesses, and communities across the country. the federal reserve has also been taking broad and forceful

actions to direct credit in the economy for households, andnesses large and small, state and federal governments. there is lots of uncertainty around the development of therapeutics and vaccines. all of us want them to happen as soon as possible, but we cannot plan on that. powell: fed chair jay speaking there. caroline had an entire fed special without you and me. don't worry, folks, me and the 209 are back here. chief ubs u.s. economist. i guess the tone here was decidedly dovish. we have a fed that will make clear that it will do what it takes to keep the economy and markets going. what more can jay powell and the

what they already said they would do? i think you are asking exactly the right question. i think the dangerous possibility is that they are getting close to the limits of what they can do. they have ruled out negative interest rates. they have extended lending facilities. promised toy have keep the federal funds rate at zero on the one hand, and what they do with asset purchases. in billion per month mortgage backed securities. what can they do? the fed models say you ease financial conditions by pushing down longer-term rates. so, maybe they concentrate those purchases just at five years and beyond. funds rate, you

promise to hold it at zero until inflation gets back to 2%. maybe you forecast that inflation will overshoot. these are the things they can do. it is doing a little bit more of what they are currently doing. i don't think there is that much more they can do. caroline: let's push forward to the next six weeks, when we perhaps get that framework to the review. when they do outline potentially some new tools they are willing to pull on. how important will that be dictated by the numbers we get. tomorrow's you think gdp data and the data in terms of jobless claims will paint that picture? seth: i think ultimately -- and i do think chair powell set the stage for the strategic review, it is just not going to be earthshaking.

it is going to be an incremental change from where they are now. partly because they already have the gas pedal floored. partly because, with unemployment much higher than they like, getting back to what they were doing before means, let's be as accommodative as we can. there is not a whole lot of scope for them to change things a lot. i think the data coming in. i agree with chair powell that it does appear things are slowing with the rapid bounce off the bottom. i think it will allow them to get greater consensus within the committee to keep those ischases going until there material progress toward our macroeconomic goals, something like that. some of them are saying, look, we had two months of strong data, maybe we will get back to the pre-covid levels sometime soon.

if we see that data rollover, that will allow him to coalesce, let's be in for the long haul. taylor: let me impress you on that a little bit or. some of the high-frequency data starting to roll over, do they then need to start significant yield curve targeting on the 10, the 30 year? seth: i think that is what they have left to do. i have no doubt in my mind that they have studied that extensively. you can go back to 2011, there is a memo talking about targeting different yields at different maturities. that is very well plowed ground. the reason not to target the 10 year, suppose it is successful. at some point, the market will want to sell off. then they will transfer the entire lot over to defend.

-- over to the fed. i think they can up asset purchases, push them further up the curve. with the 10 year at 57 basis points, it is kind of hard to know just how much further down they will be able to go anytime soon. romaine: do we ever get to a point soon where the power of monetary policy, its effect on the market, that begins to wane? seth: absolutely. the effect on markets, probably. but i will say, yields are very, very low. inflation expectations, the dollar is weakening. you are still seeing some reaction. i think everybody in markets pays a lot of attention to what the fed is doing. i think the real question is, what can they do to the real

economy. caroline: great to have you. this is bloomberg. ♪

romaine: internet traffic has surged as the coronavirus pandemic has kept people at home, making content delivery networks the beneficiaries of all that bandwidth use. the biggest gain coming in clouds security solutions business. there is concern that the pandemic fueled growth might not be sustainable. joining us now is the ceo and cofounder of akamai. tom, thanks for being here today. let's start with the surge in traffic and maybe you can give us a sense of where that surge is coming from. is it coming from all of us

watching hulu and netflix? is it coming from the games, shopping online, zoom meetings, where? tom: all of the above. when it comes to measuring traffic by bits, video is a big cause. and the software updates for the gaming, those are the big drivers of bandwidth usage on the internet. nowuring by transaction, you are looking at e-commerce and work from home. distance-learning also a big contributor. seeline: tom, what do you in terms of the work from home trend, the learn from home trend as well? google has decided to tell it employees they will be working from home until summer 2021. is that what you are prepared for? tom: we are finding it very effective with remote work. we are operating just as

efficiently and in some ways more efficiently. i think that is going to be a trend. we will probably be in a similar situation where we have the option to work from home through the summer next year and a lot of employees will want to do that on a more or less permanent basis. taylor: a lot of analysts are perplexed, citing a disconnect between your valuation and some of your peers. frankly, you look undervalued. what is the market missing? what are these analysts not seeing? tom: there is a little bit of a disconnect. obviously we are doing incredibly well. at akamai, our security solutions is now over $1 billion a year. we are highly profitable. we delivered operating margins of 32%.

share, up 30%er year-over-year. the other companies you are talking about won't be profitable by their own statements for years. in terms of real growth, akamai is doing much better by far. we are the market leaders by a long way. us bee do is helping successful going forward. we are in a position to make investments in capacity and innovation to drive future growth. while,: you guys, for a kind of had this space behind the scenes, enabler of the internet space, for quite a bit. there are a lot of players now.

this has become a much more visible industry. whether it is the actual behind the scenes stuff or cloud security, things like that. do you worry that maybe it becomes a critical mass for competitors? tom: i don't think so. we've had a lot of competitors for over 15 years. sharetinue to grow our against that competition. if you look at our growth on the revenue, just the top line, we've grown more revenue than most of those companies have in total. so, and that is because we are continuing to innovate and we have solutions that are

market-leading. if we were sitting on our laurels, you would be in real trouble. we are continuing to lead the market on innovation and products. if you look at security, that is the lead driver for sales today. caroline: you are basically painting the picture of a field that you can play in openly and we are watching the ceo's of amazon,facebook, and some of them using your products, some of them competing. do you feel that more regulation is needed to level the playing field? companies include some of our biggest customers, biggest partners. we've competed against those companies for a long time. it is hard competing against a company like that with tremendous resources. the way we've done it

successfully is through innovation and market-leading solutions and great attention to our customers. i do think there is a role for government, to make sure that when companies get to that scale and have that much market power, that it is not being abused. , allne: all right, akamai the remote work going on, a big part of that. appreciate you coming on with us. let's get over now to mark crumpton with the bloomberg first word news. mark: a grim milestone in the united states. according to a tally from johns hopkins university, more than 150,000 people have now died from coronavirus in the united states. it is the highest official death toll in the world. bothda and california

recorded a record number of daily fatalities today. texas congressman louie gohmert was tested positive for covid-19. the eight term congressman at times wears a bandana. attorney general william barr will be tested after coming into contact with the congressman during tuesday's hearing. u.s. defense leaders have announced plans to withdraw troops from germany, some brought home and others shifted to other countries. the pentagon plan will cost billions of dollars and take years to complete. >> the current plan will reposition approximately 11,900 personnel from germany. enhancener that will the deterrence of russia and the 11,900, nearly

5600 service members will be repositioned within nato 6400ries and approximately will return to the united states. mark: president trump signaled the move was largely about punishing germany. the president has said germany and other nato partners should increase efforts to meet the goal that all members spend at least 2% of gdp on defense. federal agents will begin pulling out of portland, oregon. agents will begin leaving tomorrow. they process tested -- protested police killings and infuriated local officials who did not ask for federal deployment. global news, 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

i am mark crumpton. this is bloomberg. ♪

caroline: let's have a look at the world of earnings. paypal came out with better-than-expected earnings. consumers really flocking to online sellers. surge to theending tune of some 30%. topping what the average analyst had said. we are up 1.8% on the back of that. let's dig into the numbers.

currently has a buy rating on the stock. i guess we were always anticipating e-commerce firing on all cylinders. are you impressed? >> yes. is the 21mber for us million net new actives that paypal added. they indicated they thought they might do 15 to 20. they beat that handily. just to put that in perspective, that is about three times higher than what net new actives were running prior to the pandemic. that gives a sense for how much of the servers we've seen in online buying. they are not just going to buy one. this is to drive sustained growth. romaine: with regards to adoption by the actual companies , areelves that use paypal

we seeing greater adoption by them as well? >> i haven't seen the number yet, but i'm guessing, going into the corner, they indicated they might add 1 to 1.5 million new merchants. so you are seeing both sides of it. businesses are rapidly having to shift their businesses. lisa, within the paypal family, i'm wondering how much you need to see them start to monetize venmo. and with the acquisition of honey, how do they bring that on board? >> venmo is a little bit of a tricky issue with paypal.

they haven't done a great job has that asset, while glare done a fantastic job building the cash app product, which is a competitor to venmo. i wouldn't view venmo as essential to paypal. 90% of profits is driven by the paypal checkout button. it is more like opportunity cost. it is sort of an asset that so in they haven't figured out terms of monetizing it. caroline: that speaks to paypal in general. they were so into the market and they seemed to drop the ball a little bit. away theted to take eighth of from them. , theg what happened braintree acquisition that we arnie -- areal,

they now firing on all cylinders? >> they are firing on most cylinders. even prior to the pandemic, the paypal checkout button continues to take share of checkouts. the backdrop is e-commerce, like in this quarter , it is running something like 20% to 25%, whereas the paypal checkout button is running 30%. that is an indication that they have done a good job. they were first to market. 500 are on 80% of the top retail sites and apps in the united states and the u.k. job of done a good maintaining that. as they try to expand into other venmo, honey,ee,

that is sort of putting a lot of and seeing which ones pan out. taylor: lisa ellis, thank you as always for your time. gains indicting slow operations this year and the next after the coronavirus pandemic battered results. david westin spoke to the ceo about how this impacted earnings and what he sees for the future. >> i would say that the second order played out fine. certainly challenging our aviation business, our health care business. two of our best and better cash generators.

we really came into this thinking this was an opportunity. even though the near-term pressures were going to be acute, we wanted to take full advantage of the situation. if you look at the pace at which our new leaders have assimilated into the business, the adoption of principles across more broadly to serve customers, there are a host of examples. but i think when the dust settles, we will see that we did accelerate the transformation of this company. >> does it change the emphasis? you mentioned aviation was going to lead the way. terriblyre really is important. think the businesses in the

near-term will play different roles, but on the operating model, it is really a bottoms up approach. the way it all adds up in 2020 or 2021 might be different than what we thought, but what we are doing doesn't really change. we are having to make adjustments. we talked about the cost and cash action there. 2 billion of cash saves in progress. departureking at the over the next couple quarters of probably up to a quarter of our team. relative to what we want to do in the other businesses, that work continues. their progress in the short-term term is more important to us. >> does it also change the ark

of that? you sell jet engines and you have maintenance. as you talk to boeing, airbus, does it change the emphasis between the one and the other? >> not really. what i've really been so thrilled to be part of is what has been a multi-decade leadership on the part of aviation in the industry broadly. we want to continue to lead this industry. how do we do that? technology. do, we've been able to service our engines often over decades and in close proximity with our customers. that is a great set up. to be so close with our customers. lesse going to see aftermarket activity.

airbus, we will be talking about a different trajectory over the near-term. that is all right. we remain confident that we will see a return in time to commercial aviation activity levels. chairman and ceo there. coming up, kodak moments. more than 79,000 robinhood traders. we will discuss with our own joe weisenthal. this company has seen more than a 2000% increase. this is bloomberg. ♪

romaine: welcome back.

joe weisenthal joining us now in austin, texas. all the talk today is about kodak. at some point, i think it became a crypto company. now apparently it is a pharmaceutical company. it is -- joe: it is kind of perfect. you have the ticker symbol and the underlying company can be whatever is hot. they were even going to do their own coin. now it is a pharma company and they got this loan. in the last two days, the stock is up 16 fold. all in all, typical 2020 story. caroline: they just need to become a cannabis company and a meat free company and then they have the trifecta. it still a that, is desperation that you want to get in, and even though we are seeing them gaining, they are

not managing to play them much? so they are gaming on stocks? joe: i don't think there's any other way to describe this. they are getting a $765 million loan. it is not like they are getting some big sale of goods to the government. generic medicines is not the highest margin business in the first place. on the other hand, maybe there's a business now that there wasn't before. taylor: the retail favorite stocks continue to outperform. since march 23, when the market bottomed out, these retail stocks are up 60%, 70%. hedge funds are only 50% or so. they really have been retail

focused stocks that have been the big out performers. i wonder if this is a situation where you all pile in but don't understand the risk. joe: that is a high possibility. but it is a tough time. stocks are going to rally until the virus flareup happens again. ok. stocks are going to keep rallying until it is clear that there is no stimulus deal to replace the lost unemployment. no deal, stocks keep rallying. it is one of these markets that is very good for the people that don't think about it much and very bad for people that try to be sophisticated. romaine: definitely a life lesson. they didn't ask about some of the market bubbles or whether the fed cares it is a bubble. what did you make of that? joe: interesting that there was

not much question about that. what is striking is how much he's convinced the market that they are on hold for years to come. the yield curve and other measures. any news really make today during the press conference. there is nothing to say anymore. caroline: always a breath of fresh air. pulse of all things millennial and powell. i think he gets older every time. i think i'm still a millennial. taylor: i am definitely a millennial. caroline: that is all for "what'd you miss?" taylor: stay tuned. bloomberg technology up next. romaine: have a great evening, everyone. ♪

emily: welcome to "bloomberg technology." i'm emily chang. a fiery hearing on capitol hill still underway. we are going into the fifth hour of the ceo's being questioned by the house committee on a range of issues. the ceo's making the case that competition