Great depression. Shares of u. S. Bank stocks looking very weak compared to tech stocks which have been guiyang the which have been buoying the rally. What an incredible rally, the huge losses on the back of jobs numbers which we are getting too used to. Taylor it was incredible, looking at some big losses and in the final hours or so, managing to reverse that and post some of the gains. The only sense of caution is tech is not leading the gains. Tech for one of the first few times has been the underperformer. On the downside in the last two days. The good news is it was not leading the losses. You have microsoft, facebook, being held in a meaningful way. When they are not leading the game on days like this when you would expect to see outperformance, that has people cautious about really the strength of the rally. Quickly, saidere if someone was not watching the stocks already, you should be. If you want to believe in the strength of the rally, you have to see the Big Companies start to be the big out performers. Bigy lets talk about the tech mollermaersk the big tech movers. Netflix has been one of the pandemic winners so far. Now we are seeing content that may have been wayward at this time flying into the hands of netflix. It is buying up stuff that has not been released yet. Talked a lotve not about analyst actions recently. Ratinglix has a new buy from jeffries for the race the target of 520 a share. The total adjustable market is underappreciated and the company has significant runway for continued doubledigit subscriber growth and margins are improving. While there is choppiness in the stock in the near term, they are advising clients to get into stock if you are a longterm buyer. This is one of the by risk stocks, managing to prove its resiliency and that is what is reflected in analyst action. Cells. Ght holds and six sells. Emily talk about the Market Action over the course of the week. We were anticipating jobs numbers, we heard from the president we are not expecting, or he is not expecting to pass new stimulus measures, but there are warnings from the fed. How do we expect to go into tomorrow . Taylor all of the action has come off of the virus and then the claims like this morning. You mentioned at the beginning of the program Goldman Sachs coming out with another unemployment report saying joblessness could be 25 . The jobless claims remained in the millions for the eighth straight week. Above the 2. 5 million that was expected. The only the sad stories that there is a person behind every one of those claims but it translates into the Unemployment Rates we are likely to get. Neel kashkari at the minneapolis fed said it is likely to be 25 and 14 number from april is hiding a lot of the underlying issues, hiding the fact this on implement rate should be higher. Goldman sachs revising their forecast higher as well. No longer do they think 15 is the peak. 25 is the peak, that his depression era like numbers that is depression era like numbers. Sayingsecretary powell not just the on employment but how long it will last. When you have long gaps in unemployment in your career, it can leave longterm career damage. Thank you for breaking it down for us. I want to dig into the jobless numbers now with tom thibodeau. Usnk you so much for joining. Talk to us about how these numbers break down. In the tech market specifically there have been huge layoffs at airbnb, lift. Lyft. Do we know how unemployment is holding up in the Tech Industry . Cyclically when we have these layoffs, they tend to lay off the people who are in sales and marketing operations, finance. They keep the brains of the operations, the tech capable people on the staff, people responsible for uber user maintenance, the different cybersecurity fields. Nobody wants to lose those people during these types of downturns. They are trimming in other ways. Airbnb, which is primarily a Sales Marketing organization, is laying off in big numbers. We will likely see continued laying off, but they are not getting rid of the court technical the core technical brains of the operation. Emily what do you see over the next behemoths . Next few months . Goldman sachs is putting it in the ballpark with a great depression. These numbers are crazy, the jobless claims we continue to see and you talked about Unemployment Insurance and what will happen when the supplements begin to expire as part of the original stimulus package. There will not be as much of an incentive. Companies will be sending people off of payrolls in places where they may not be getting as much as they were as the current stimulus plan provides for very with states loosening up, we saw discussions about whether we will not see this v come back but a switch this swoosh. Comeyees could immediately back into these businesses, minimized by the slow rebound in these areas. It will be interesting in the states which are opening quickly to see how business happens in that area and how business reacts to people. We are likely to see the 25 number could linger for a few months. It is not like they will all go back to work. In the tech sector, the skilled Tech Employee has been integral to keeping the economy going. All of the people that have transitioned to remote, they need cybersecurity specialists and people managing the cloud environment. If you are a tech worker, you are going to be in a good position. Retail, food, it will be tough. Emily what is interesting about these numbers, you have got as many jobless claims filed in the last eight weeks as were filed in 18 months during the financial crisis, so you wonder how long this goes on for amber how deep and pronounced these numbers get. We were goes on for and how deep and pronounced these numbers get. Next february or march the real impact could be felt. Right now you still have people spending money and feeling optimistic and not knowing exactly how long this is going to last. I wonder how long do you think such announced on employment the last and how deep does it get . Would you have been hearing and what we have been hearing is likely to be the case, something that stretches into next year before those people get back. Will the Holiday Hiring season be anything close to what it has been . That is a lot of people who are in and out of the job market during the Holiday Hiring season, but what will that look like . If that is minimized, youll see the high jobless numbers and Unemployment Rate stretch into next year. One of the other things, companies for the shortterm are allowing customers to reduce payments or to push payments into later parts of the year. If things dont materialize, and the ability to pay bills comes due, that is a big variable. A lot of companies are allowing customers to punt on the due invoices. But if those dont get paid, the dollars will not be there to pay people. We did an anecdotal survey and we are getting shipping, reducing contractors, but these are stopgap measures. Unless things turn around, those measures turn into longterm permanent measures. Emily thanks so much for giving us your sobering analysis. Tom thibodeau of calm say goodbye to earnings season . That could come to pass. This is bloomberg. AuthorSilicon Valley eric read is looking to move away from socalled quarterly capitalism and get companies to focus on the longterm with a new venture called the longterm Stock Exchange. He joins us now with our bloomberg reporter. We know the best from your hit look, the lead start up. Now you have a new book taking on well entrenched exchanges like the New York Stock Exchange and the nasdaq. When do you expect this to kick off and is the middle of a pandemic the right time . Thank you very much. If it was not for the pandemic, we would have been online with our trading platform. I have been with this project coming up on 10 years. Sec toapproval from the be in operation. Things were looking like that would happen around this time except for the pandemic. With Financial Markets the way they are at and with the stress and pressure, both the member banks and the regulators, we did not feel like it was safe to have people trying to launch the exchange now. We are in a holding pattern. The good news is we put long term into the name of the company so everyone knows to be patient. We have a lot of these Companies Across america that when they are thinking of their stakeholders, there are a lot of layoffs. Employees are a major stakeholder. How long are employees going to think about the longterm while they are focused on shortterm margin pressure here . It is interesting timing because that conversation about stakeholders was just starting to take off area when we are in the boom Time Starting to take off area when we are in the boom times, it is easy to have conversations about stakeholders. It is important to note having employees as a stakeholder doesnt mean you will never do layoffs. These are still businesses. Providing secure employment and running a Sustainable Business is part of their obligation. When you are under that pressure, do you treat people with compassion and respect, and are you cut the very things which will enable you to finance the recovery when it does come . I am keeping a close eye on the companys that are cutting companies that are cutting. What kind of power firepower do they have, because the margins are so compressed, do they have any money to think about longerterm plans, stakeholders, environment things around them that are not just as shareholders . This is the time to reaffirm people come first and not have it the an empty mantra. The reason it matters, and this goes to deming in the 20th century, your employees and customers, how you treat them in a crisis is something they will remember for the rest of their lives. Companies that feel they can use this opportunity to squeeze the cut cost, maybe they can get away with it. Everyone is distracted with covid, etc. People are going to remember and it will not be long from now when we will be competing for talent again and Brand Reputation will matter and we will try to grow the margins and share our customer wallets. The moments are coming not long from now and the way we treat people will set us up with the recovery comes area months ago recovery comes. Months ago we were flying high and there was money in corporate in Silicon Valley. A lot of Corporate Governance issues came up. Looking at Silicon Valley now, has that behavior reigned in now the investing environment has changed . It has not been as dramatic as you might think. It is important to see the government governance actions as a reaction to an extreme problem. Founders of these companies are looking for a way to preserve their culture and ability to think longterm while accessing public markets. The solutions for the past, i view as binary. One stakeholder roles over the other. The idea here was to try to paint a better round, a better more principled ground. Some companies did not want to do that because it sets them up to be partners with investors over the life of their company. You have been telling companies to stay lean, with your book the lean startup. Now huge chunks of startups are disappearing. Lyft is laying off 17 . Youre seeing Companies Get leaner than ever and i wonder if you would advise them to stay that way over the longterm and not invest too much in the future when they have so much uncertainty ahead. Lean startup was born in the last financial crisis, what we called the great recession. In those years people used to ask me for advice about how to figure out the level of spending that would make sense. When your investors fresh you pressure you to give back and founders and executives a thousand what is the right level of spending. I would say in good times and bad, we want to invest in those rings that allow us to react with agility, to learn what customers want, to be scientific and responsive to customer needs. If you follow that pattern, you are building a more resilient company, and you dont have to predict the future with accuracy because you are able to respond. You now a lot of regret about having hired folks in a rigid, planning based way that was not true to their start up roots and i hope founders use this opportunity to reset and have a more lean and agile culture where they come through the other side. , will beic ries watching to see when you get the new Stock Exchange off the ground. Thank you, both. The tables have turned. In the midst of the pandemic, movies that were originally slated for prime time, going straight into the arms of netflix. We will discuss that coming up. This is bloomberg. Emily netflix is said to have purchased the movie bad trip from mgm. It was going to come out in theaters but now, going straight into the arms of netflix. We have got lucas shaw, our reporter who covers entertainment. What do we know . You have two competing events, a bunch of movie studios who dont know when they will be able to release their movies in theaters. Mgm has this movie that was in march. O be at sxsw it is starring a popular comedian. It is not a big enough movie, but they could use in fusion of cash. They start to shop it. Then you have streaming Services Like never eggs and amazon like netflix and amazon that are hungry for big names so they will pay mgm enough money they make a profit and are comfortable letting it know. Emily i am excited about this one. We have got hamilton fans excited about the new hamilton movie hitting disney plus in july. This is a year earlier than it was supposed to be. How did that happen . Another situation of a company trying to adapt to how coronavirus has affected their business. Disney plus is unable to produce any new shows. Disney was banking on having marble shows be the anchor tenants in the fall. They take a movie in hamilton which has old in audience and a lot of people like myself who have not had a chance to see it, they can use that later this year to keep people engaged on disney bus and make sure people dont drop off. Disney plus and make sure people dont drop off. A theatricalo have release, but now it will be a streaming movie. If you are aer content creator if you are devastated, or if you are excited, all of us being shut in and limited options means we are discovering new things that maybe would not have broken out if they were competing in a sort of normal environment. If that will lead to sort of new talent and creative discoveries. That is what a lot of these streaming services are banking on, people will go back and rewatch old shows because they are tired of the new thing or they cant find something new. As far as the talent goes, they are having asked emotions. They cant create in the way they would like to. They cannot film a tv show or movie, but it does give them an opportunity to try a new format and to tout their old work. You are seeing all sorts of podcasts and creations around old shows. A captivetainly audience. Lucas shaw, thank you as always for tuning in. 100 million doses of a covid19 vaccine by the end of the year. Is that possible . We will hear from president and novavax. They will give us the progress. This is bloomberg. W . W . Uhiono w . W . Uhiono there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Like welcome back. The race to create a covid19 vaccine. There are at least 100 different vaccine candidates in progress, including from novavax which just received 388 million in funding from the covid epidemic preparedness innovation, the largest ever such grant from this group. Joining us, the president of research and development at novavax. You presented your progress this week. How much progress have you made . First of all, this validation of our technology is really wonderful. It is so enabling. Progress of the race, we see it as a race for a pathogen. We are racing against the virus. This is very enabling for us. Are doingss, we multiple things in parallel. Us to get into manufacturing in a big way. We want to deliver millions of doses. We think we can deliver 100 million doses by the end of the year and more than a billion doses next year. Great witht is so our partner. They enable us financially to get into contracts with very large manufacturers. Thats important. A lot of doses needed. We can now make a lot of doses. Emily you have worked on vaccines for three decades, so you know the reality of how long this can take. How long before a vaccine is broadly available in the United States and then globally . Thehat the fall, the end of year, spring, or longer . Gregory it is looking like it is accelerating. It usually takes a decade. We were hoping maybe 18 months, but the signs im seeing from the funders, from the regulators and policymakers is they are looking for something much sooner. Right now, i think it is possible that these vaccines could be deployed before the end of the year. That is going to depend a lot on the fda, the data we have. I think what we brought to the table is a mature technology. It is not licensed, but there is a lot of experience with humans, with manufacturing it. We know the safety profile pretty well. We are confident about the data we have that i updated this week that will predict the human trial outcomes. And so we need to generate enough data to be assuring, but this is such a big problem that you kind of do the calculation, on thekbenefit, i think whole, it is possible to imagine deploying these vaccines by the end of the year. That would be revolutionary, so it is so important. Compromise on to safety. We are giving vaccines to healthy people, but the outcome of covid is so bad, not just the mortality and the hospitalization, but the suffering. My daughter works in a hospital as a labor and delivery nurse. They got called into the ward. People are alone, dying, trying to breathe. That inefit to prevent think will drive a lot of decisions made to accelerate. I am optimistic that it could be this year. Emily there is so mu