people have a home bias. preferred to another area where we are buying the dip. on a relative basis, more expensive than they have been over the past couple of months. ,ut you are looking at that 4% 5% yield. it is a way to build out strong, resilient portfolios. riskine: strong, resilient on view in the market. santander giving a wave at the close. the nasdaq closed up 1.5%. it has been tech and small caps in charge. romaine: some interesting movers today were in the m&a space.

workhorse, variant medical. nikola was up. update., we will get an a lot going on today. the x fl.uying taylor: i wanted to talk about what was moving higher. romaine: tiktok? did we use to own tiktok? caroline: different tictoc. ralor: caroline's downloads buy signal. i want to get more thoughts hear from kristin bitterly. curious how you are thinking about volatility. i have heard some different comments today. that we will get out and then maybe get back in the market on a relief rally after the

election. others are saying they are going to stick through it. how are you thinking about volatility, particularly around some of the election risks. thesejust goes back to anchoring biases that we have. the 20's. in we think of the average historical norm, it is probably between like 15-18. over the past couple of years, obviously, we have seen historic low levels. then historic all-time in the 1980's. -- in the 80's. tohink the opportunity is hedge your short-term risk. we want people to remain invested. if you are pulling out and go to cash, there is no return on that

as an asset. taking advantage of this collapse in volatility that, given the risks on the horizon, whether it is the rising tensions between the u.s. and china, whether it is rising cases, are all risks that you can hedge against. for premiums that are relatively inexpensive relative to what you could have gotten a couple of months ago. build in some of this downside action and take advantage with cheaper volatility. romaine: when you look out on that volatility, you do see more activity surrounding the election and even a little bit beyond that based on concerns of how policy may or may not change.

does that give you any concern that we could be in for a lot of repositioning amongst people trying to decide the future of u.s. policy. >> yes. i think the way to hedge that, when i am talking about hedging short-term risk, it is really for the next month. understanding, if there is a change in regime, what could that mean. the we look out in terms of term structure of volatility, one of the strategies that i should clarify, when we are talking about buying some downside protection, we are not talking about buying it all the way down to zero. one of the strategies we like is basically hedging yourself down 10% and building in almost like 10% tor zone from down

down 30%. you are willing to take a little bit of risk. but understanding that if the markets really did experience extreme volatility, you would be able to monetize that. pullback, ie that think a lot of people are of the belief that there is a technical dip and we will buy that depth. taking advantage of some of that term structure that you mentioned. caroline: news you can use, folks. thank you. as always. let's give you some breaking news. maker,o's the game raising outlook for 2021. it is boosting its forecast, first quarter adjusted earnings-per-share, and expected revenue.

adjustedirst quarter per share, $2.30. a big beat. romaine: we should point out, the shares are still halted. you are a big red dead redemption fan, aren't you, taylor? taylor: that is what i am doing in my free time. you know what else? watching shares of virgin galactic. they are showing again revenue that comes in. our headlines are showing zero. net loss of $63 million compared to a loss of $60 million in the first quarter. keep sifting through this headline to figure out what is going on as shares

kind of fluctuate. i amine: the ceo saying, thrilled to be leading virgin galactic. this is back to a certain extent of a company folding into another. earnings totally loss of $54 million compared to a loss of 63 in 2020. that does it to -- does it for "the closing bell." "what'd you miss?" is up next. is to lapping up? -- where is talapia. this is bloomberg. ♪

bloomberg's world headquarters in new york, i am caroline hyde. what'd you miss is another record for the nasdaq. money piling into technology stocks overall. the market continuing in this risk on feel as some economic dataame in -- economic came in better than expected. president trump says he is looking into the possibility of a second order for stimulus. president trump threatens to ban the chinese backed app tiktok. first, looking at earnings. of grandtion in terms theft auto really helping to

push take two stocks higher. everyone is at home using these games. nba basketball franchise also doing particularly well. taylor: shares of version galactic. , zeroe is unchanged dollars. but they are posting a loss in the second quarter was slightly more than the first quarter. loss per share of about $.30. they do say that they were -- they entered a deposit agreement for orbital spaceflights with 12 customers. i made another chart for both of you. this one comes from neel kashkari, the head of the federal reserve at the bank of minneapolis. said thateekend, he the u.s. savings rate means that

the country can afford to support americans laid off during the coronavirus pandemic. what that means is that we don't need to borrow abroad to help finance some of this additional stimulus. he seems to believe that the stimulus and savings rate is enough. in the director of the bar college economics program. professor, it is really interesting, some of the comments you got over the weekend saying that we can afford more stimulus. what is your take for more stimulus at this moment? >> i think the case is strong. the fundamentals are not very good and i think things will get worse rather than better. i found it interesting that neel

kashkari was saying that savings was what we need to go forward with when just a few months ago he argued the federal reserve prints the money, congress has told us to do it, and when we need to pass stimulus or budgets of any kind, we have the financial resources. it means that people are cautious. maybe they are able to pay bills. means lesss rate spending. we need to find those incentives to spend. romaine: there is sort of a fear here that congress and other policymakers will enter this realm of complacency. you get decent data out of ism numbers, maybe the payroll

numbers. i guess the concern here, the argument seems to be that if we do get the kind of recovery a lot of people are expecting, you don't need to put a ton of stimulus into the system right now. the risk is that if you don't have that recovery as expected, the downturn comes longer. aulina: we were talking about v-shaped recovery and it is nowhere to be found. we are still at very elevated levels. right now, we are debating whether congress should renew the stimulus. what that debate is about is removing consistency work. even though the avalanche of job ongoing, we did not see major defaults. people were able to meet their

ongoing financial commitments. now, remove that. we won't get the same kind of support and still businesses are andering loss of sales profits. it does not really give us a true indication of the health of the economy because the longer we stay with loss of sales, higher unemployment, the harder it is to recover. caroline: give us your perfect formula. obviously, this is a stressful time. we know that policymaking has not been perfect, particularly in the eye of the storm in march. paulina: there are no perfect solutions here because we have a public health crisis that has not been brought under control. the principles that remain are the same principles as we

discussed in march. we still need to mobilize, mobilize, mobilize. there are public health concerns that the government needs to address, including providing assistance to states. they are feeling the financial strain and they will do more layoffs. we do need to support small businesses, educational institutions, and people. we do see elevated levels of food and housing insecurity. it means not just more economic pain, but it might mean defaults, evictions, bankruptcies, that we did not see. for me, another round of general stimulus is a no-brainer, but that is the minimum we can do. theome point, when we see

fire put out, we need to figure out how to rebuild it, then we need the federal government to step in. appreciate your thoughts, always appreciate your insights. associate professor of economics and the director of the economics program at bard college. reserve bankl president robert kaplan weighed in, and exclusive interview. >> it is still our view that we will contract for the year at about 4.5% to 5%. it has been our view after a very sharp decline in the second quarter. rebound in the third and fourth quarter is more muted in the united states. it has caused me to think that the unemployment rate, if we don't do a better job managing

the virus, the unemployment rate is likely to be between 9% and 10%. we have moved up our unemployment forecast. i think we have got a rebound but it is much more muted than it was. if we don't do a better job managing the virus, we will have lower growth and a higher unemployment rate. unemploymentxtra bonus and eviction moratorium, they are gone for now. wave ofe expect a defaults that might affect credit markets? >> we have looked at it. is of the things that unusual about this downturn is that incomes is relatively

solid, and one of the reasons is the unemployment benefits. normally in a downturn, you see a drop of incomes. it is still my view that in some extensionill get an in unemployment benefits. i am hopeful that will continue. if it did not, you will see a further weakening in the economy. >> any business people telling you that $600 bonus was keeping people from coming back to the labor force? people werebusiness telling me that. they were telling me that it was challenging to hire people. we have looked at a number of studies. we don't see it as much in the data but i am hearing it from business people. , itever the right answer is think he still are going to need to see extension of unemployment.

it may be restructured but i think it is important that we see an extension of it. and while it may have made it hard for certain individual businesses to hire, it helped create jobs because it helped ulster consumer spending. >> a number of your colleagues, joined by neel kashkari, say we nationwider probably lockdown for about four weeks to defeat the virus. >> i probably have a somewhat different view based on my conversations with epidemiologists locally and through the country. the epidemiologists i have spoken with believe that we can manage this economy and the virus and have the economy open

if all of us wore masks. that is first and foremost. then we need a good testing and contact tracing regime. if we all wore masks, they believe it would substantially mute the transmission of the virus, you would not have to do widespread lockdown. that, if youfear did more lockdowns, if you still did not have good following of the virus particles, than the lockdown would be wasted. i think their advice, be very careful about the reopening, enforce a widespread practice of wearing masks, social distancing. caroline: from new york, this is bloomberg. ♪

♪ taylor: with the massive amount of stimulus during the pandemic, there is a renewed focus on debt to gdp ratio. gdpnow forecasting debt to to hit 120% by 2024. they say in the u.s., debt to gdp will be 130% by 2021. we are joined to discuss the key onvers behind the outlook friday. it seems like the stimulus spending was that final thing you had to see. >> first of all, thank you for having me on. with the u.s., we have been making two points consistently for 10 years now. one is that u.s. debt is on a long-term unsustainable trend.

another is that the u.s. has higher debt tolerance than other countries. now, we are facing a big jump in public debt in the u.s. we think that potentially worsens the outlook. we are not saying do this, don't do them. we are not giving policy advice. we are just saying how we see it given the very changed forecast that we now have. a lot of what you guys wrote in your report is something that we have heard from monetary policymakers here in the u.s. however, the market response overall has been recently to continued -- has been a sickly y a decisionbasicall to buy debt. there are a lot of people around the world who are perfectly willing to hold u.s. government

debt. >> i think that speaks very much to u.s. dollar currency status. it means that central banks around the world, other private investors are willing to hold u.s. debt. stillt, u.s. debt is yielding a positive nominal return. stillollar accounts for 62% of global foreign exchange reserves. global at the dollar's importance around the world, if you are looking at trade invoicing, fx transactions, the u.s. dollar is still the most important currency. fedpolicy response by the underlines just how important the dollar's. usoline: charles, what takes

to a cutting in the aaa? is it more than a trillion in terms of stimulus? charles: this is a longer-term outlook we normally keep on for two years. my would guess we don't look at this again until 2021. but of course we could look at it at any time. we are looking at longer-term trends, i think. what interest rates are doing, what debt and mx -- debt dynamics look like. clue the, low interest rates are a key variable. that does make the debt sustainable in the short to medium run. caroline: keeping a close eye on the risk to u.s. economic

dynamism and the reserve currency. this is bloomberg. ♪

romaine: quick earnings recap. will start out with aig. coming in at 674 million. that included covid-19 related losses of 419 million. about 7.9 billion dollar loss for the quarter. caroline: grand theft auto and up nba basketball franchise, after hours as it manages to beat on all fronts. taylor: virgin galactic all over the place.

7% whenly, they were up they said richard branson's first test flight would be in 2021. but now shares falling as they are looking to do a stock offering. romaine: we want to pivot from that to the latest issue of the bloomberg market magazine. a phenomenal cover. when you open up that cover, it is all about diversity. you get all of these voices. article primarily about diversity. got their experiences about what it is to be on wall street. sonali bostick is joining us now. you interviewed several people in that story. thank you for joining

us. we had so many different perspectives here on wall street. one of them surprised me in that, could wall street be a more attractive place to work in the future for more people of color? >> i do think that there is an opportunity for wall street to embrace diversity. one of the reasons why i think there is room for growth is because, as you highlighted in the article, so many us have gone there with the hope of achieving success to then deal with the harsh reality of not being able to reach the levels we are seeing our white

counterparts reach. -- when i came out of college, my goal was to achieve the american dream. pursuing anat in the finance field was my ticket to achieving a certain level of success. but i encountered some issues that held me back. which is why opened up my own ria, harris and harris wealth management. , when youaneilia start off in this industry, you find yourself maybe is the only person of color in the room, not being taken as seriously as you are white counterparts -- as your white counterparts.

ofsay, i will leave instead trying to get to the top in that space. zaneilia: i am pretty outspoken. when you take the approach of, ok, is this a battle that i want to forge ahead and address a situation that occurs in a certain way. when you go back and forth in your head as to, i am going to take this approach and i am going to take it to a higher level, or management, to see if it can be addressed. receive ao, if you lot of pushback or dismissal of what you are experiencing, after a while, you think, why not continue pushing forward? you want to, again, succeed.

but when you receive pushback or dismissal order mile -- dismissal or denial on what you are experiencing. that is why many people have made the decision, that is not the path for me at this particular organization and they look for opportunities elsewhere or start their own. caroline: you did start your own. what would it have taken for you to stay? the voices coming from wall street at the moment: for change, do you think it is authentic? in alia: i live predominately black community. when i look around, i don't see representation from all street -- wall street there. they have come into my community. they did not stay long. they did not work within the

community. and they left. i wanted to serve my community. i wanted to be active in my community. builtwanted to see wealth in my community. so, do i feel that what i am hearing from wall street and right now amongst companies, whether they want to support us, help elevate us so that we can , whate a level of success would make that authentic for me leveling at the executive , people of color represented. 500e know, the fortune companies have no black women as ceos. one of the things i have heard over the years, there is not a pipeline. in my community, i see a

plethora of highly educated african-americans who are -- whous, were resilient are resilient, who want to make the difference. there is a pipeline. that is number one. i want to hate on that pipeline issue for a second. how do firms start to look outside of the schools they usually recruit from? do you have any advice of how they can get out of their habits of going to the same place over and over. zaneilia: i graduated from an historically black university, so that is one place. people transitioning into other opportunities. aisleways feel like we always go back to getting people out of college.

at the executive level. how about only people from other industries that have the leadership skills that can be transitioned easily? i think it needs to be a twofold recruitment not just from college students but also from upper-level management. those are the things that i think should be connected. romaine: great to get your thoughts here. ofeilia harris, president harris and harris wealth management. of course, we want to thank sonali basak, part of the great reporting in the newest issue of bloomberg markets. some people hopeful about what is going on on wall street and other people taking elsewhere.

something i would recommend a lot of folks check out. caroline: meanwhile, let's take a look at the first word news. the nation's top infectious disease expert's warning against opening schools and hotspots. dr. anthony fauci said today that the default should be that children rumored -- return to school. president trump is threatening to hold back federal money in school districts that do not bring their students back into school. has stoppedernment allowing cruise ships for the next 14 days. officials said that they should have notified after the first case was reported. president trump says tiktok will

have to close its u.s. operations unless there is a deal to sell the network. trump says he is ok with microsoft buying tiktok in the u.s. he also says the federal government should be paid "a substantial amount of money" as part of the deal. 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. this is bloomberg. ♪

for tech the fight dominance. president trump saying earlier that tiktok will have to close in the united states by september 15 unless there is a deal.

our next guest believes that we may be in the early innings of a tech cold war. of one, what does that end up looking like? if it becomes a tit-for-tat, and we have already seen china shot out most technology companies from the u.s. what then happens if we start to shut the chinese giants out of the u.s. as well? >> this is going on since 2010, the started to get more in 2015. u.s.,ection here in the emotions of both sides, the u.s. and china populations are fairly polarized. the early part of what i call the current century tech cold war.

lastedt cold war we had 50-plus years. it is accelerating as we speak. we did a machine learning based covid, it spiraled higher. headed toe world is what we call a tech wall, which in twoivide the world halves. whether companies will have to comply to operate. attacks, a higher cost for companies to operate. rise, we had a sectorrecently, the tech , a staggering $3.5 trillion.

romaine: what has been the net effect on the technology industry? a big part of the growth in technology has been the cross-border sharing not only in supply chains but also in customers and talent. how do you continue to have technological progress? >> absolutely. the tech sector has benefited the most from globalization. this supply chain which china has assembled over the last 40 years has done a lot of work and has networks that are hard to replicate. if you wanted to relocate that to parts of asia, it would take five, 10 years. to relocate that would cost the sector a trillion dollars. signalre a lot of

effects that would and of hurting tech more than helping. techr: we know that u.s. could not play in china unless they play by their rules. now, at least in the case of tiktok, china tech cannot play here unless they play by our rules. his china having to rethink their strategy? interesting. huawei was a more strategic asset. in terms of tiktok, of course it not thetant but it is same on the strategic perspective as huawei. basically, china believes that it is its rightful place in the world to be a tech superpower. u.s., forced transfer.

i think as time progresses, there has to be some sort of understanding. it remains to be seen. you might see things change. -- my view caroline: what does that mean for one's investment strategy? >> for the market, it is rallying, tech is making new highs primarily based on liquidity. of the tech risk cold war accelerating and some kind of decoupling. the cost would be staggering certain sectors in tech which have very high exposure to china from demand, supply chain. hardware. think, as the new cycle

accelerates, those might come at risk if things continue to go the way they are. romaine: global head of investment strategy at deutsche bank. let's get a check on the latest business flash headlines. tyson foods posting better than expected profits. with thests associated coronavirus. that was more than offset by a surge in prices. lilly is seeking to test its coronavirus antibody drug in nursing homes. participants in the study will be given one dose of the antibody to see how it can reduce infection rates or treat those already affected. the bankrupt pro football league being bought by a group of investors including

dwayne "the rock" johnson. , theyd capital partners will pay $50 million for the parent company. the league shut down in the first season in the midst of the coronavirus pandemic. i need to get one of those jackets. caroline: i was thinking it was just the guy from "jumanji." stay tuned for more technology news next. we will be talking to the former andbook head of advertising a former c.i.a. officer. you do not want to miss it. this is bloomberg. ♪

romaine: variety of earnings after the bell.

billion second-quarter loss. this is primarily driven by the sale of a stake in a business. bound the core business, $674 million of catastrophe costs. about $400 million or so of that was related to covid-19. caroline: fast entrance to into the world of gaming. grand theft auto can't an influx -- got an influx of new players, we understand. so did nba 2k. taylor: shares of version galactic all over the place. richard branson said spaceflight could have been in the first quarter of 2021, then all of that reversed. the new stock offering said to be traded now august 6. romain w going to space?

romaine: do i get to come back? let's bring in joe weisenthal. bitcoin impresario. twitter kingpin. tiktok fanatic. i hear you are in your rv somewhere, making your way back from austin, texas to new york city. there is a lot of move in bitcoin, or as caroline calls it, digital gold. joe: the real gold has had such a good run. am i not coming through? it seemed weird that bitcoin itself was not surging. it did finally break out over the last several days. 11,400.ttle bit under kind of standard volatility. whenng some love at a time

basically everything else is getting bond. bought.ng taylor: what are some of the bitcoin and where it goes from here? what are some of the more -- about the levels? who tries toanyone put a price target on it is inevitably going to embarrass themselves. there is a lot of optimism that since 2017, there has been a lot of infrastructure built out so that institutional money could access bitcoin, which has been historically difficult for regulated institutions to buy. you look at environments where nothing really yields anymore. portfolio hedges that perhaps

might work in an environment of zero rates. there might be interested in seeing if bitcoin can play a goals like -- gold-like role. caroline: sorry about my technical difficulties earlier. out, a fundme news set up to be bringing new endowments into bitcoin. hoo-ha of jones getting into the space. finally, getting institutional money. are you hearing of anymore proof points? are you seeing it? joe: the institutional money always seems to be right around the corner. i think there is a lot of hype.

get in, maybe they buy a lot of crypto or allocate to small funds. it could be different this time if the vehicles to access it are better, if there is a perception that portfolios need a hedge. maybe it will be real this time and the money will come in. romaine: are you tracking the hurricane, the tropical storm, or whatever it is? said ist you just exactly the extent of my knowledge, that there is this hurricane working its way up the east coast. at the exact same level as your question. caroline: there is a headline. it is getting better organized and expected to make landfall.

himselfenthal, keeping organized and now thankfully back in the great state of new york. that is all for "the closing bell -- that is all for "what'd you miss?" this is bloomberg. ♪ you say the customer's make their own rules.

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♪ emily: leading the rally, pushing the nasdaq 100 to a record. apple hitting an all-time high. microsoft trying to salvage a deal to buy the u.s. operations of the chinese social media an chips -- social media