from new york i'm caroline hyde. joe: i'm joe weisenthal. romaine: i'm romaine bostick. stocks up on the day, down on the week, but that massive move in treasury yields providing most of the drama this week. notline: the coronavirus is going anywhere anytime soon. the numbers indicate they just keep increasing. u.s. daily cases exceeding

70,000 for the first time since july. in europe, it is dark. france, italy, along with other countries seeing daily records. today we focused on what this means to your money. there might still be time to find a potential haven. wholee are going to get a slew of economic data next week. the covid numbers, how is that going to affect the future recovery? joe: we had a second wave in the summer if you want to call it that in sun belt states. we are seeing this third wave really hitting the midwest hard. the economy has recovered even as covid has picked up. clearly this has a dampening effect on activity. the longer this goes on, the worse it gets, not good. numbers continue to surge in the u.s. europe looking very bad. than inf cases higher

the spring. this is very much still with us. romaine: and those pmi surveys out of europe provided some potential taste of what is to come for the rest of the world. we saw manufacturing in those pmi surveys. line going is services. that is the concern here. i guess the question is, what type of balance can there be if you have those two areas of the economy going in different directions? back to the u.s., there is some concern that the economy can't weather a downturn like you see on the chart. joe: for more, let's bring in bloomberg columnist matt mason. thanks for joining us. the numbers looking pretty bad in the u.s. a peak numbere to

of daily cases. what is it translating into hospitalizations and deaths? this is the same pattern that we saw over the summer. how the course of the disease works. time for the virus to spread. eventually when you have enough community spread, it hits enough people or breakthrough to more vulnerable populations. we are already there. when you are adding 70,000 cases a day, they are going to take up further. i would be shocked if we don't significantly surpass some of those records of the summer. outbreak,t summer where it was pretty heavily

concentrated in a few states, now you have more than a dozen states with test positivity rates over 10%. way of earlyin the major policy adjustments that are going to bring that under control anytime soon. so further growth is inevitable. caroline: policy adjustments is an interesting theme. we look at the car crash that seems to be going on in the united kingdom with the confusion over tier levels in certain cities and loopholes that seem to allow you to have a decadent business lunch, but trying to meet as a family, you can't go out to a pub. they are trying to support the economy in certain different ways, but it leads to confusion and a continuing spread of the virus. what happens as they look to europe, which seems to be slightly ahead in the wave coming slightly sooner and policy decisions being made? unfortunately, it a lasting

problem of communication and planning. there's been sort of this belief or ingrained or not necessarily pushed back against -- open, it is this easy, need trajectory. when the communication all along should have been that this is going to be something that fluctuates, that if numbers go up, you have to respond. you have to scale back on activity. what i think we are going to end up learning from europe, eventually numbers get bad enough that you have to take that further action. and unfortunately the reality is that there seems to be more targeted measures or more regionally based measures, and while eventually those can work,

they will take longer to show up and have an effect, just because that is the way the virus works when it is sufficiently dispersed in a community. most of the spread is happening at home rather than out in the world. it is going to be a long, difficult road ahead. any faith inou put this idea that this time around, we might see higher rates of infection, but we might also see lower rates of death because hospitals and our health care system are better prepared this time around? >> this is a really fascinating question and one that is surprisingly difficult to answer in a satisfying way. if you compare it in certain ways, it is going to look a lot better than spring. in the spring, there was basically no testing and the disease was spreading

essentially uncontained for weeks in many populations. is just a different comparison. the thing i would say is that there is probably some difference in terms of the relative risk of an individual case because of better treatment, catching it earlier, but it is not so dramatic that anyone should change their personal risk assessment or policy. it is still a deadly virus. you can very easily spread to someone that has higher risk. and the risk of mortality goes up dramatically with age and comorbidities. advancements been in treatment that are going to make a dramatically different -- if we get enough cases, it breaks through to more vulnerable populations, starts

to strain hospitals again, you can get higher mortality rates. i think there is likely some a realut i think on infection fatality rate basis, it may not be as different as people hope. right, great stuff over there at bloomberg opinion. we have to continue this conversation and what it means for investors. we are going to talk about one of those potential havens. crypto, could it be? our next guest has this opinion in a moment. this is bloomberg. ♪

romaine: today we are focused on the recent surge in covid cases and what the reaction from investors could be. joe: absolutely right. for a long time, cryptocurrencies like bitcoin, not doing that great, but they have soared lately. bloomberg spoke earlier with the galaxy ceo. take a listen. don't think bitcoin is going to be used as a transactional currency. bitcoin is being used to store value. people worry that central banks are debasing fiat currencies. even as we switched to a digital dollar, which is coming. facebook has libra coming. lots of coins are going to be issued in the united states and abroad. caroline: such strong glasses. strong comments because he is

saying -- that will be interesting. people aren't using it to buy. they are using it to store value. joe: joining us with more insight, michael. ,t is all about the investment store of value, safe haven, whatever. every time someone is like, what are people going to buy, that is not going to happen, right? >> we are seeing the case for value. as the largest digital currency sellingnager, we are you guys and the investment community empirical data sets that investors are pouring into digital currencies because it is providing them with a different shade of return stream in their portfolio. in many cases, digital currencies are helping insulate their portfolio from shock. whether it was brexit, u.s.-china tensions, and again,

thinking about the resiliency of this asset class, a lot of investors are focusing on it. romaine: i guess the turn we started to see in prices over the last couple of months, do you get a sense that some of the euphoria that was baked into bitcoin a couple years ago, that this time around, there's maybe a little more substance to it that will prevent us from seeing another crash? >> i think we are in a different environment. when you have companies like square adding bitcoin to their balance sheet, you guys were discussing paypal bringing digital currencies to their merchants and users, you are talking about a very different environment that is fraught with amazing infrastructure built by fantastic companies and many more access points. i think it is a very different environment that investors are trying to navigate outside of

crypto, but also they have many more access points and many more options now. caroline: what started this buildup of institutional money manager coming into crypto and making their voices known -- he of course was on air earlier this week talking about how it is like investing in a startup to a certain extent. they might well be crashing. is that just how an investor has to have their mindset at the moment? >> we will always be proponents of the idea that crypto is not something for everybody, but something everyone should at least be considering. it is not going to put more into your portfolio than you could afford to lose. but thinking about crypto as an investment -- this asset wasn't around 10 or 12 years ago, but

the evidence is here. we raised over $1 billion in the past quarter and that is the strongest wretch of inflows we've ever seen. andstors are really engaged the level of education and figuring out where this fits in their portfolio is the conversation now. in 2017, it was kind of a decision around, is this going to be a real thing? joe: here's my question. graday bitcoin and nova said it, bitcoin is to store value, protect against money printing, may be a hedge against brexit, etc. but you look at chain-link, litecoin, a million others -- are you telling me the reason people are buying these coins is because they expect chain-link and litecoin to be good hedges? or is it just something else

going on? >> i think the asset class as a whole is maturing. one of the things we've seen within our investor base is about 40% of them have invested in more than one grayscale product. so they are seeing diversification benefits to owning more than one crypto. and there is this duality between bitcoin versus all coins. people are looking at protocols because they believe as we do that it probably is not a winner take all scenario and the future does hold where there are .ultiple digital currencies outine: but there are a lot there right now competing and it does seem to me -- i'm definitely the novice here, but it seems a little excessive to me. veryr sure, because it is

easy to create a digital currency. over time, most of these probably will not continue to exist. but for a lot of investors, having the ability to be involved in new and exciting aotocols is part of making speculative investment in this asset class. it is early days. it takes us back to 2017 when theyof started to take people's money. we look at paypal for example. i want to ask you the boring old question, where is regulation? do you think it is in the right place now? i think if you rewind three or four years, i would say a lot of my investor conversations were characterized by regulatory uncertainty.

since that time, we've seen bodiese, legislative putting into action -- i feel that there's quite a bit of regulatory clarity around this asset class today and all the businesses that are operating are being held to the same standard as any of the money transmission or money service business. i also don't think that investors should be waiting for an entirely new set of regulations. regulators have been very engaged and continue to take a front row seat. joe: michael, thank you so much for joining us. ahead ahead, we will look to next week's economic data. a barrage that could trigger a sharp rebound in gdp. this is bloomberg. ♪

caroline: today we are focused on just how the recent surge in covid cases globally could affect your investments, your economic recovery. next week, we get a test on how the data shakes up ahead of the elections. joe: unfortunately we are not going to get another jobs report ahead of the november 3 elections, but there is a lot of economic data next week including a gdp report that is probably going to show the fastest growth in the history of the entire measure. that comes on thursday. we also get new home sales, durable goods orders. on friday, personal income and spending. a huge week ahead for data. romaine: and obviously the gdp number, the headline is going to be eye-popping. but there's going to be a lot under the hood.

someone who does a great job tracking that, she's a senior u.s. economist for bloomberg economics. let's start off with gdp. 30%, that is the number. where does that put us relative to our pre-covid levels? >> absolutely. the sharpest rebound in the the level oflead economic activity almost four percentage points below the precrisis peak. the focus has already shifted to gauging the momentum in the current quarter, rising covid cases, and political uncertainty. ishink what we will see already priced into the markets and we are already trying to gauge how much of a slowdown we will get in the fourth quarter. but this is going to be a really robust reading, probably driven

by consumer spending, by a significant rebound in consumer spending, particularly in the goods sector. we saw a significant rebound in the auto sector, in auto sales. that will drive consumption higher, probably in the vicinity of 40%. our focus is for a 32% rebound in the fourth quarter. caroline: what other data are you looking at for a more forward guide? is that something you pay much attention to? >> we are paying a lot of attention on what is happening to the services sector of the economy. it is easier to track. you have retail sales, auto sales, things like that. what is really hurting in the economy, the services sector.

it is much harder to track using personal data. the i'm looking at is personal income and spending report which comes out after the gdp report. personal income and spending data will be out on friday. we have incorporated a lot of information already in the gdp report. the trajectory of personal income and spending, including within services and goods, will be very interesting to see what happens in that particular report. is it steady growth? it will tell us a lot about what will happen going into the quarter. joe: at this point, it looks unlikely that we are going to get a stimulus deal before the election. who knows what is happening

after the election? maybe there will be a democratic sweep but nothing is guaranteed. if there is no more stimulus forthcoming, how damaging would that be, and would we run the risk of a double-dip? >> we don't think that such a scenario is likely. , anyink that in any case type of scenario, the postelection scenario will get some sort of a stimulus. but if we absolutely don't, that would mean probably negative growth in the first quarter of next year. extremely slow recovery after that. the economy will recover on its own, but the biggest elephant in the room is not the stimulus. it is the vaccine, the virus itself. what happens to the effective treatment or the vaccine will define the trajectory going forward. caroline: we thank you.

of course, that is it for "what'd you miss?" this week. joe: bloomberg technology is up next. romaine: have a great weekend, everyone. this is bloomberg. ♪

♪ ♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." next week, earnings for apple, alphabet, and facebook. we talk with dana white bush. compelled toelt email 10 million customers, urging them to vote for joe