start ringing volumes on the s&p 500 about 11% higher than your average. dow jones industrial average versus your usual. for once, they run on the nasdaq is over. we are in the red fight a fw -- red by a few tenths of a percent. google, apple down, microsoft -- google down. microsoft did move higher. abbott labs also rallied. once again, if you don't have that participation from that narrow band of tech stocks. caroline pointed out and you did as well, what happens hit a 150 on the 30 year?

when you get companies like jp morgan, wells fargo up 2%, 3%. i pose this question back to liz ann sonders. talk to me about the health of the consumer. i know that they don't like the extra low rates. , auto loans,s credit card rates at zero, to the banks then get some hope that they could lend to what is a healthy consumer? liz ann: they can still land. the question is the sustainability of the health of the consumer. there were great fears that we inld see a big rolling over consumption. the is probably because of savings cushion.

that was maybe not quite accurate given what happened with the complete shutdown in the economy. 19% or so per that has been near-term. i think that is on the assumption we get a phase four fiscal plan. the concern, during the period receivingloyed were -- the spending was significantly more in relative terms than the spending of the employed cohort. the move down in savings i don't think lasts in patootie, especially if we don't see improvement on the job games front. next several months will be key, especially if we don't get a more formal addition

to the enhanced unemployment. is this why we are starting to see a little bit of uptick in volatility. of theirguess some biggest moves we have seen in quite a few weeks. a growing there is realization that in week over week or month over month terms, we are seeing a v-shaped recovery. that it matters more than level with economic bad, and more than good or when it comes to the stock market. the level of compression in the data was so severe that we had a lot of percentage increase that we had to see. i think what is perhaps

unsettling as well as that unemployment rates have not continued the descent. andink the labor market kind of the choppy pattern here is one of the factors driving up volatility. caroline: we want to thank you, liz ann sonders, chief investment strategist at charles schwab. workforce, a $50 billion company, it is currently announcing it will have a co-ceo joining the ranks of its current founder. the share dropped from 11% after earnings beat expectations. more on markets coverage coming up. close."rg markets: the this is bloomberg. ♪

caroline: "bloomberg markets: the close." the markets have closed. a record high for the s&p 500 once again. estate,inancials, real helped by of course those yields increasing. for once, technology not in charge. one of the biggest decliners, the cosmetics and skincare company down 8%. earnings out of ulta. dismal, down were year-over-year. that was better than expected. the company did post a pretty

decent profit. $.13 pere estimates of share. the company did find a way to control some of those costs. no firm guidance for the year. the company said they will be challenged. taylor: i love our nicknames for each other. we are like one big family. weaking of one big family, -- i like the bond market. investment grade and high-yield spreads are compressing. a lot of this has to do with the fed trying to ease up some of that credit market. we have been stuck in this range. yesterday, i asked a guest, he said no way are we going down to 400, don't fight the fed. , we talk about the

leverage loan default rate. inmbing to about 4.3% august. molly, how are you thinking about these credit markets after jay powell's announcement? >> it seems like green light ahead for credit. this is what everyone was waiting for. we have had a remarkable summer in terms of debt issuance, how they have encouraged this remarkable investing environment. it looks like that will probably continue now as long as the fed is backstopping credit. companies will take advantage of what has been an incredibly attractive funding environment. caroline: this time of year, it is quiet on the bond market. usually, someone like you has a chance to get some rest.

i am sure you are at your desk once again waiting for new issuance. is it still likely to be the and people take some quiet time before we resurrect ourselves later september? >> has been more active. i think we are getting a bit quieter now. shockingly, dealers are still expecting next week. even if this week you thought was unheard of, this -- next week is truly meant to be absolutely nothing for labor day. it looks like september will be pretty robust as well. it is usually a busy month and that looks to be even more so the case now. you don't know what else will be ahead with the election. if there is a vaccine or second wave.

romaine: is there any sense that to market will be willing sort of close the door particularly on some of the lower rated companies now that we have gotten some more clarity and you are starting to see some of those yields start to rise? is, ashigh-yield space far as measure of credit risk goes, we look at the measure of the cost to protect that against defaults. that eased the most versus high yields today. basically, what we are saying is investors are less worried about high yields now. at that level since before the pandemic. helpems that is really high-yield companies the most. the lowest rated junk bonds are no longer in distressed territory.

they are back under that threshold. high-yield is still doing relatively well all things considered. finally, in my introduction, we were talking about the leveraged loan market. the default rate up to about 4.3%. does not sound like much, but it is the highest in more than a decade. >> it looks like it will still inpretty slow for loans september. loans have notably lagged when we have been talking about all of this issuance. it has really been coming out of corporate bonds. but there are a couple of meetings set right now for after labor day. it has definitely been a lot quieter. more consistently, we have seen outflows out of funds.

biteems like it will be a more of the same on the loan front. romaine: will have to leave it there. let's get over to mark crumpton. mark: president trump says he will visit the gulf coast this weekend to tour damage from one of the fiercest hurricanes to ever hit the united states. president trump said he would visit texas and louisiana on saturday or sunday to survey the destruction caused by laura. laura slammed gulf coast earlier today. at least four people were killed the world health organization's says theean official outbreak is not going away anytime soon. he spoke to reporters in copenhagen today >> it is a tornado with a long tail and it is a multi organ disease. the virus is attacking lungs but also part and other organs.

people,tage, younger particularly with the winter coming, will be in more close contact with the elder population. states and territories in europe have recorded a 14 day increase of over 10%. he called that definitely an uptick. german chancellor angela merkel is urging germans to refrain from traveling to areas with severe outbreaks of the coronavirus. the list consists of 100 countries including the united states, most of spain, and france. the chancellor says people --iting an area without could miss income. she met with european officials to discuss a recent spike in infections. special envoyions

for syria said talks are picking up today. discussions have been tabled after several of the participants tested positive for coronavirus. the talks are aimed at possibly drafting a new constitution for syria and brain an end to that country's nine-year-old civil war. 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 a mark crumpton. his bloomberg. --this is bloomberg. ♪

>> in terms of china, a lot has been accomplished.

on the enforcement side, we really have been enforcing quite vigorously. you're familiar with the actions we have taken on huawei, on z te, two major telecom companies. most recently, we have been working very hard on the semi conductor part of things. we still have the best software design and the best fabrication equipment for semi conductors. so we are trying to avoid them taking unfair advantage of our technology. technology is really important because while protecting things like steel and aluminum, help take care of today's world, technology is tomorrow's world. very recently, we put on the companies since

2017. awful lot of those are chinese companies. that is because they are the ones that seem to be doing the most to violate sanctions, to violate human rights, and most recently also to create problems in hong kong. that has been a big, big series. then of course, you have the tariffs. tariffs imposed on china. is cumulative effect enormously greater than the long-term cumulative effect of everything done pre-trump. >> speaking of china and tiktokogy, we have the

issue, and i am told microsoft, walmart, and oracle are all interested. which of these if any make sense view?he u.s.'s point of >> the fundamental idea is that we don't want detailed, personal information on all of our teenage children who are the main users we do not want that to become of a -- to become part to use tose database infiltrate our country. that is the principal objective. whether it should be microsoft, oracle, or something else, that is really more for the private sector to decide. the tiktok people are essentially operating in the u.s. and couple of other non-chinese countries. tiktok as i understand it does not really operate in china.

so there will be no particular impact on chinese apps as a result of whatever we do with it. my own personal preference would be to have it acquired by one of these american companies. i think that would have the fringe benefit not only of helping from a national security point of view, but creating more areas ofin the facebook and social media. that is a healthy thing. competition is a very good thing. kind of what makes american industry thrive. romaine: wilbur ross speaking a little bit earlier on bloomberg. cap earnings are out. the owner saying that revenue slipped 18% in the most recent quarter. that was an improvement year-over-year from the fiscal first quarter.

brand, which are very own dave wilson pointed out was the bright spot. if these after-hours gains hold, cap would erase it within a year. caroline: let's fit, because we want to talk about some of the impacts of the coronavirus health crisis. it is not just physical, it is also mental. it is causing an increase in mental health crisis. young adults are getting more depressed, more anxious as the pandemic uproots their life. joining us is dr. lucy mcbride, who has been seeing the increase in patients. the statistics are phenomenal. something like 24% is now how many in the u.s., the national rate of depression, anxiety

similar. one in four, that number shocks me. glad you are shining a light on this important issue. i am seeing patients every day in my office. i have always believed that considering mental health is part of considering our whole health. right now, we are seeing a until health crisis. the coronavirus is a crisis of physical health. but, whether or not you have the coronavirus, you are no doubt experiencing vulnerability, fear, uncertainty, and loss. it is only natural that people would be feeling some level of anxiety. romaine: i'm curious about the lockdown, the shelter-in-place orders. we have seen a lot of anecdotal evidence of a particularly from those folks that are maybe

single or shelter-in-place alone. they seem to be suffering in some cases the worst for me mental health perspective. >> certainly. it is a great point. we are wired for survival and also for connection. we stay healthy as mammals is to connect with others. alonenly, people who are are more at risk for symptoms of depression and anxiety, absolutely. taylor: i think what is most frustrating about this is officials, when they are shutting down the city, no one thought of the effects of those suffering from alcoholism, , who thrive in periods of isolation.

how do we fix that to ensure that those who are most vulnerable can really get the help that they need? >> i love that question. the pandemic provides us a moment to rethink what it means to be healthy. it is not enough to once a year get your blood work checked and take the boxes. health is all-encompassing, our mental and physical health. healthil we put mental and the doctor's office, we are really not delivering meaningful health care. i hope that as we move forward them as we learn how vulnerable people are, that we will take these lessons and reimagine health care so that we can cure people from the ground up. caroline: it was interesting to me from a cultural perspective, coming from the u.k., perhaps

they don't talk about mental health enough. certainly there is more of culture awareness perhaps of having someone to talk to in the united states. that is something that is a luxury. however we seeing that being able to be inclusive, being not too expensive? >> one thing that is nice, if you will, reimbursements for mental health services with some insurance companies have been relaxed. telemedicine has played a big role. for many of my patients, telemedicine has been a lifeline. i am not talking to people simply about blood plan -- their blood pressure. i am also talking to them about grief. my patient this morning, was grieving the loss of her husband before the pandemic. andhas very real trauma

resulting health consequences that, had i not had access to her, we would have not been able to address. taylor: thank you, as always. it is a conversation honestly that i wish we could have weekly. i think we have all been thinking about the economics of this shutdown and so often, the mental parts spine this are ignored. romaine: not only covid, but of course the economic fallout and social and political issues. a lot of folks are certainly at a position where maybe they can use a little bit of help. the ashes of this crisis, new businesses. maybe potentially a white consumer base but a black consumer base as well. this is something we hope to see a shift in. taylor: here is the good news. joe weisenthal's 14th wedding

anniversary, he is celebrated by joining you next. this is bloomberg. ♪

hike! coming to the green flag, racing at daytona. they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake. he scores! stanley cup champions. touchdown! only mahomes. expect anything different? the big events are back and xfinity is your home for the return of live sports. yeah. this moving thing never gets any easier. well, xfinity makes moving super easy. i can transfer my internet and tv service in about a minute. wow, that is easy. almost as easy as having those guys help you move. we are those guys. that's you? the truck adds 10 pounds. in the arms. -okay...

transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. ♪ caroline: from bloomberg's will headquarters in new york, i am caroline hyde. romaine: let's look at where markets ended today. stocks higher, yield higher, dollar higher. joe: the question is, "what'd you miss?" caroline: let's acknowledge the fed's new framework. sure, it was expected, but it was dovish. jay powell unveiling the new newoach, codifying a

relaxed start to inflation with the hopes that employment can run higher may the question day is -- today is what you missed in the reading of the economy. how it aims to focus on inclusion as the world fights its way back from the pandemic. joe: it is really subtle, the shift. to start with, the fed has had that inflation target for a while now it will target an average 2%. the fed has it consistently below the 2% level. there is a view that that 2% has not been a target, but a ceiling. and perhaps if the third stance is to get an average, that inflation could run hotter.

romaine: this announcement comes on a day when we got that weekly job claims report. a lot of questions as to whether that did not necessarily take into account a broader employment picture it seemed today that they will be an adjusted view of the employment situation which will allow not only inflation to run hotter but potentially let the labor market run a little bit hotter. joe: we are joined by bloomberg's matt bosler. point in- is there a recent history that you can point to that if the fed had this framework as opposed to the old one, maybe policy would have gone in a different direction? matt: i think so. i think you can go back to 2015

when they started raising interest rates. they had not sustainably achieved the 2% inflation target yet. some of the work people have done on average inflation targeting over the past couple of years as this idea has become more popular kind of indicates that if the fed had been following this type of framework for, they probably would not have started raising interest 2018 if at all. it would have probably changed the course of policy over the past decade at least by a couple of years. caroline: it is noticeable how much fed chair powell has spoken to the issue of inequality or making sure that employment encircles even more, that the level of employment can never be too high. how much do you think is

dictated by the social movement that we see? how much do you think targeting 2% will get us to a more picture? employment matt: there has been a lot of criticism that they were cutting things off too early. obviously, we have been focused more on racial disparities over the last several years thanks to a lot of the work that has been done here. minorities remained very high. peak part ofis a this conversation to answer your second question, whether the fed can move the needle there or not , i think that is a question. fed policy, using interest rates to try to incentivize the

private sector to jumpstart economic activity. of management that does not have a big role for fiscal policy makers to go in and try to spend money directly to narrow some of those gaps. extentot clear to what this will change the picture for minorities going forward if we are going to be solely relying framework?or its new romaine: for powell to make this announcement without setting any clear yardstick for what really is going to account for inflation running hot. i'm curious whether there is actual agreement here amongst the fed members about what that yardstick is going to be or how what thatdetermine

yardstick is. >> that is the big question, what are they going to do about their actual foreign guidance. the changes they made today basically say that they are seeking to achieve 2% inflation on average over time. that is a big difference from saying, we will not raise interest rates until we see inflation averaging 2%. that is kind of the more contentious question that is going to be debated in the coming weeks and months as the fed moves toward updating that guidance. it is probably going to be a lot harder to get everyone around the table to agree on a commitment to what they would need to see before raising rates at all. just a broader more overarching whichn policy in general would maybe include some rate hikes if they felt that was the

right thing to do. so i think that will be the thing we will be watching for going forward here. the maybe they take employment mandate more seriously, they think about broader employment. still ahe end, it is handful of people sitting around the table at if they feel like it is time to raise rates, that could happen anytime. there is nothing that binds them. >> this is part of the story we saw play out when they work raising rates. we are all trying to achieve full employment and price stability but we have different ideas on how to get there. i think changes that they made today really leave the door wide open for that debate to continue. to the extent that they want to keep that door open, keep their optionality open, maybe we don't

see such strong pointed forward guidance when they updated it. some people are calling for specific guideposts. we will have to see if they have an appetite to go that far. coming up here, we just told you about the fed side of the story. how, we will dig into fiscal stimulus could reshape the global economy. this is bloomberg. ♪

romaine: welcome back. today, we are focused on reshaping the global economy. governments and policymakers are doing. governments around the world have devoted more than $10 trillion to economic stimulus measures. joe, that is a lot of bitcoin. according to a mckinsey survey, a lot think that that money should be prioritized for climate change. joe: i think all three of us could do something about the economy. the big question, what kind of sustained fiscal stimulus do we see after the acute phase of this crisis? there is a widespread view that maybe one of the is avenues is for infrastructure and designs to mitigate climate change. one area you see all around the

world. brazil,exico, china, and a lot of people think this is an avenue of government spending we could see. caroline: joe is still working on the cv to be the next finance minister of maybe the u.s.. it is interesting, india and mexico. whereas germany -- where is germany? europe seems to be front and center for this as well. talk to us about the focus on green spending. how real is it? it is interesting, it seems to be emerging markets leading in terms of respondents wanting to see change. priority of, the governments all over the world now is lives and livelihoods. infections,ovid

closing in on a million deaths. then you have this economic catastrophe, depending on how you look at it, the worst since the 19th century. mass unemployment taking up. formuestion then is what will your economic recovery take? will we repeat the same mistake collapsehere you had a in activity, suddenly the skies turned blue? 2009, stimulus starts kicking in and we go straight back to where we were before skies turned gray. as the chart you just shows demonstrates very clearly, there consensus.normous

that we have got to prioritize the environment this time around. thesee: when we fall into crises, there is always a tendency for governments and policymakers to think, let's not worry about these big picture issues like climate change. , given theing records we have seen with regards to the atlantic storms, the wildfires in california, whether that makes the visibility of those types of capacities -- those types of catastrophes gives the impetusce -- gives the to push for some of these things. andy: the sort of thinking that you just outlined is so wrongheaded. it is obviously no contradiction whatsoever between the environment and economic covering. in fact, greed stimulus is the

most efficient and most effective means of economic recovery. ofth korea, which poured 80% its stimulus funds post-2008 into green initiatives, actually recorded one of the swiftest recoveries. is opportunity now really around this. bloomberg has calculated the numbers. something like $12 trillion of government stimulus available now for reconstruction. about three times the size of the stimulus in 2009. so far, we are not cna huge and investment.g a huge something in the region of 800 billion plus dollars for what it describes is the biggest green

stimulus in history. joe biden's plan goes beyond that. he has a $2 trillion stimulus plan over four years which will inolve huge investments transport, sustainable power, as well as buildings. the i wanted to talk about europe concept. for years, there has been reluctance to do fiscal stimulus. the germans have been reluctant to do it. on the other hand, governments do seem to be very serious about climate. does green stimulus allow spending to essentially become more politically palatable? maybe governments would not be inclined to spend but under the sort of green ideals, there is a little more willingness to go for it. that is exactly

right. i think what you are seeing everywhere is the state's back. big government is back. beyond this $12 trillion stimulus that will be showering down, the ability governments now have two reshape entire industries. you have people like mark carney arguing that bailout funds for airlines should be contingent on them going carbon neutral. offsetting progress -- offsetting projects like for a station. governments are getting into the business of investing directly in companies. don't forget, one of the biggest beneficiaries of the 2009 bailout was tesla. ofht now, there are legions elon musks all over the world, eagerly snatching up these

stimulus funds, investing in apps,l apps, health care carbon capture technologies. get anming up, we alternative take on trends we are seeing in the economy right now. a data scientist joins us next. this is bloomberg. ♪

♪ today throughout the show, we have been focusing on how the global economy would be reshaped by a change in the month -- in the monetary policy and the future of fiscal spending. first, you've got to get a read on where the economy actually is. , aor research and trading key fund that has kind of an

alternative way to gauge. they are looking at google searches. joe: google searches giving real-time look at what is going on in the economy because people don't like to the google search box. ther data much better in low risk states than the high risk states. doingl, recovery trends ok, still improving. but definitely, the virus seems to be having an impact still with the labor market. romaine: will be interesting when we get to a stage where it sort of balances out, where you have recruitment activity in up and people who either left the labor force willingly or were booted out because of the crisis come back in. let's bring in a data scientist with arbor research. what exactly are you seeing in the data that you look at right

now that would give any insight into whether we are going to see or get anytime soon a balance in the labor market? ben: sure. what happened in june and the early portion of july was a stagnation and plateau. , stillit in job postings about 21% or so below where we expect them to be. search activity also plateaued. areuitment, how many people searching about job interviews and time-full-time employment. we have seen things improve. within high risk states, there has been a rebound from more tepid growth. search activity for recruitment below what we 17% would expect based on averages. states,these lower risk

search activities rebounded remarkably. when we get these stretches in recruitment relative to the degree of jobseeking, we tend to see healthy job again. our own estimates for payroll this august remain around 1.3, with $4 million. not too far from economist estimates coming in at the moment. consumerckground, the healthyso remains quite as evidenced by a job market that might be coming back online. joe: i wanted to ask if there is withnteresting data consumption. it has now been about a month or maybe a little longer and there were a lot of fears that we would get this big drop off in demand. what are you seeing in the data that talks about consumer demand

for goods and services. >> we have seen a larger amount of dispersion since mid june. anytime we expect the consumer to see a setback, we have seen growth improve. back to school, a few look at clothing, parole for children, that has fallen somewhat off the map. on the flipside, you have spending potentially increasing with the back-to-school season. up 27%r electronics, versus our baseline expectation. line for on the anything related to the housing market. with housing so strong, that begets further purchases. still running 16% above trend. kitchen appliances running 13%

above trend. you can go down the line across anything you need. we were joking on twitter about vacuum cleaners. any of these items are still well above baseline. it is a ubiquitous situation across the country. highers, a little dispersion. , wewithin the home space are seeing nearly all metros have similar search activity at home improvement somewhat rates supreme. caroline: literally just purchased a new vacuum. i am on trend. what can i say? talking about the debates you look at, how granular does it get? and the fact that the labor market has not been going towards the low income in particular. how much can you see that inatification and difference

perhaps gender but also income? obviouslyata is anonymous. we can drill down into certain metros, municipalities, cities. inton't drill down necessarily gender and get a perfect sense of inequality. , i was lookinge at today some of these favorite consumer items to search for. beauty and fitness to urban transportation and so on. there is a relationship right now with metros that have a higher degree of hourly wage earners. they are seeing diminished activity, typically around five, maybe 10% below the more dense, high wage metros like new york city, chicago, san francisco.

caroline: that is all from "what'd you miss?" technology" is next. romaine: this is bloomberg. ♪

emily: welcome to "bloomberg technology." i'm emily chang in san francisco. the record-breaking rally continuing for u.s. stocks. the s&p 500 reaching the all-time high for the fifth day. this after jay powell reiterated the federal reserve will remain accommodative. the last day of the republican national convention. president trump speaks tonight.