We are getting out of equities and bonds. They are getting out of crude. They are all just going into dollar, the dollar being another safe haven here. Caroline certainly the dollar remains the haven of choice. It is interesting whether we are talking about an inflationary or deflation area cycle as sherry was pointing out. Volumes have been very much on the thin side today, and people have been taking a step back on the risk on and risk off folk us. Volumes in the s p 500 remain. Romaine i am glad you brought up the volumes. That is something we should have talked about a bit more. The price action over the next couple of days may not be completely reflective of economic sentment, but it could cause a lot of problem for folks depending on the side of the trade you are on. Caroline lets take it back out to sherry paul now. Sherry, the big expiration as for the hearing from that coming up. Volatility s of and you are saying to remain committed. The dollar remains stronger as taylor points out. Is it too am bishes to go further afield . Yes, i think so for a couple of reasons. Just the way our Monetary System work, the able of the fed to do whatever they went, whenever they want with however much they want to do it with. That is the stabilizing feature. That combined with the fiscal stimulus, the fed buying Congress Team to get their act together in terms of putting money in the pockets of people. I think that benefits big companies. You can look at the big cap names. If you are looking for value on a trade in a recovery trade, you could take a step back into small and mids in the United States. But relative to other parts of the world, europe still debating their packages. Very difficult decisionmaking body. They lagged us by a few years in the 20082009 crisis. From a metric standpoint, i would say close into the United States, about see a lot of good kiffin depth security. Ovary sector of the s p 500 is yielding more than a 10year treasury as a side note. If you are choosing the right sectors and themes, then yes, you want to be in the us also. Romaine the 10year yield about 72 or 73 basis points. You mentioned the idea of dealing with the prospect of inflation at a time when we are in the middle of deflation. I wonder how you as an investor strategize to deal with what potentially could be that handoff from a deflation area environment to an inflationary one . Well, i think in the fixed income space, then tims would be a natural fit. Treasury protected items in the portfolio. And in sectors, you want to continue to own the growth sectors even if you have to hold your nose a little built in terms of p. E. Ratios. You are still getting good dividend streams. If you are combining center field those few elements along with some defensive plays that might give you more yield, i think the most crucial thing for individual investors is to have a really strong and clearly well thoughtout Financial Plan to anchor these strategies that will allow Portfolio Managers like me for the clients that i work for to work the money over a market cycle without there being any fear of the portfolio needing to be distributed for income, purchases or any other kind of debt. For my client, that is always the first stop, is building their family thesis. And then from there we allocate the appropriate amount of money. This is not a market you want to be in other your skis. The best way to immunize yourself from that is not to have too much money ever llocated in a portfolio. Caroline anyone asking about bitcoin for the inflation trade . No. I dont have a lot of clines interested in bitcoin. That is my short answer on that one. You really want to have these plans together so you can move quickly and walk away from these events to move forward. Sherry paul, thank you for your time. Private wealth vizquelor. Great to get her thoughts. That is it for the closing bell. Why never being rich on average, the world has never been more angry. Ark, coauthor of angrynomics joins us with more. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] caroline frombergs World Headquarters in new york, i am caroline hyde. Taylor i am taylor taylor. Romaine and i am romaine bostick. Caroline volumes dropped by a quarter of their usual he is levels. Energy financials are your worst performers. The e. U. Looks to protect its businesses from potential takeovers by chinese companies, wie suggesting measures. And the years biggestism p. O. We have the advice chair on equities partial markets. You have to check out the markets. Very interesting. You are seeing more against ens here for how evaluations are for u. S. Companies versus European Companies. You are continuing to see european stocks trading only 18 times on the forward p. E. Basis. We care about this because more and more chinese corporations are dweering up for cheap buying sprees. They are looking at massive discounts in europe, companies ravaged by the coronavirus and saying now might be a good time to buy these. We are knightonned by jick, we are joined by nick. We are seeing e. U. And u. S. Companies start to push back on some of the fournette takeovers they are starting to see . Yeah. I think absolutely we are, and a lot of it has to do with china. We are ust a reaction seeing among western governments that efforts should have been taken in the past 10 more an oecd into direction. It just hasnt worked. Governments are looking at taking a harder line, and we are going to see more of this. Romaine taking this harder line, there have been attempts to do this before, and it always runs into some sort of opposition by business groups who have their eye on that emerging economy, the large group of potential consumers over there in china. Do you think that the government efforts here to sort of contain china or to sort of send a message to china is going to be able to overcome some of the opportunity that businesses want to be able to exercise over there . I think those areas in pushback that you rightfully point out didnt rely strycova the massive change in trade policy from the u. S. Toward china in past years. We already see some clear we already see some clear signs that governments are becoming more risk tolerant when it comes to putting barriers in place. The e. U. Is going to move much more slowly than the u. S. , and the mechanisms with which they are trying to address the china challenge are different. We are talking about state subsidies and policies in European Companies directly to orestall buy outs from chinese inquirers. That is a different policy in those types of intervention that the u. S. Is further behind europe. Caroline interesting. Cue push us forward to the 2020 election and what you are seeing in terms of the ongoing narrative of the u. S. Versus china into 2021 . Certainly in the news today were revelations from the john bolton book about trumps trade policy, so i expect we are not talking about this for the next few days. It is pretty clear in the u. S. With the Trump Administration, particularly after the coronavirus outbreak, has decided that pursuing a harder line toward china is cons tents ith its campaign, a higher likelihood in the Reelection Campaign this november. But up to a point. I dont think we are talking about a Trump Administration that is really looking at putting new tariffs in place on china. There is clearly a harder line that the administration is pursuing on the Technology Side. To be ll trump has cognizant of the risk to u. S. Facility. Tracy the 1 trillion infrastructure plan was floated around, and some of it talking about 5g. How much of a risk is it to keep china out of the 5g race here in the rest . China is a minimal player in the u. S. To question what is the potential broader fallout to the relationship and how do other governments, particularly europe, respond to the u. S. Efforts not to work with the chinese company. I think it is really interesting, the extent to which there is an actual conversation in the uses now about industrial policies to encourage high Tech Knowledge reelection manufacturing to the u. S. And direct government subsidies in the u. S. To encourage firms to do. That those are going to be some of the interesting stories to watch over the next couple of months. Romaine do you see any meaningful Economic Impact out of all this, particularly on the u. S. . You are talking about the Technology Side or the broader trade story . Romaine the broader issues with china. Right. We have massive tariffs against the u. S. Biggest trading partner right now. It is a constriction on growth for sure. There there is any trajectory change there and i dont think so. It would be problematic if trump decides to rasp oat up the tariffs further from now, did you but i dont think that is the outlook here. Romaine nick, good to get your thoughts thrfments lets turn to what is going on with oil. Immense volquez tallet. We spoke with Alexander Novak during a bloomberg future of oil event where he shared that current opec output curves are justified. Take a listen. Yes indeed. You are right to mention we have made the decision on june 6 to be reserve june costs for the month of july. I think this was the right decision. Of the elped a lot of conversation, and to help volatility, we need to come out of the Recovery Period and preserve the fragile bonds. We have decided to come up with a compromise decision to extend it for one month. As for the future, i would like to remember that during the many years we have been in this for cooperation, we have always said we are flexible. We need to look and study the market. We need to make sure the market is balanced, and we need to be confident of what the pace of recovery is. We will not be making any decisions in the future based on supply and demand. I would hike to note we have made the decision we would man torre the state of the market. The next watch will be held tomorrow where we plan to discuss the conformity of the market and what the future holds for us. I want to ask about the conformity levels tomorrow as you mentioned. The data you are seeing thus far, are the laggards, notably the likes of iraq, who were supposed to make up for the cuts they failed to comply on, are you confident that these countries are doing so . Talking about performance evels and preliminary numbers, i can say that conformity is on high level, closer to 9 , and very encourages. At the same time, there are some others, and we will be discussing this tomorrow as well. I would like to remind back on the 6th of june we have decided that all countries and that everybody has to reach 100 conformity. I just hope that all of our colleagues once again reiterate their commitment to that and to their part, which about will ensure a more stable market. I know we are only in the middle of june, but what are you seeing for the first few weeks of june . Can you give us some details about how you are come applying early on . Russia takes its obligations very seriously. One of the indicators that this is the case is our almost of close compliance to 100 conformity. If you remember before, we have always been reducing production gradually. But now thanks to the summer months, which makes it a simpler task, we have been able to achieve this result very quickly. Thus, russia has committed to its obligations, and we will be taking the full obligation. Just today we saw beijing cancel 2 3 of its flights because of an uptick of virus cases there. There are pockets in the United States that are seeing these trends as well. Brazil had thousands of cases just in one day, north of 35,000. Where do you see demand right now in the oil market . That is a good question, and i think it is a very important one. Demand i would say is probably the most important factor for the market now. Bull at the same time, i can stay there are still uncertainties and volatility, particularly if we talk about the pace of the recovery. We have gone through the period where we saw the first part back in april. We have seen the recovery ynamics in may where limitations were starting to lift, and now we are seeing different dynamics. Now there are risks of a second wave emerging, although it is still quite uncertain. The Russian Energy minister. Now coming up, it is i. P. O. Market is coming back with some f the biggest listings among the biomedical companies. We will discuss with our guest. This is bloomberg. Romaine that come backs we ha in i. P. O. s we have been talking about here. Lets turn it over to our host. She is joined by a special guest. Joining me now is cully davis, who is the advice chairman of Equity Capital marks at jeffries. Thank you for joining us. You have worked on some of the bigger i. P. O. s last year in the precoronavirus market. Do expectations change for the type of company that can go hub in this type of whipsaw in volatility . Of course they do, yeah. Theres no doubt that the bar is a little different today given the environment. It is a very strange equity market environment, and the bar has changed. Although having said that, there is still a fair amount of activity even right now. Last year we saw some of these evaluations really skyrocket in some of these markets. I covered some that didnt go public. Is Silicon Valley going to have to come back to earth with the evaluations . Evaluations are driven by individual company performance. Some companies that have exposure to the consumer that have exposure to travel, clearly are suffering a little more given the current environment. There are plenty of companies, including soft wear companies that havent skipped a beat. In some cases they may be accelerating their activity. Those companies, their performance has been strong, maintained or potentially accelerated, i expect the evaluations to remain quite high. Is there a window these companies have. We have seen this before in the stock market, partially driven by all of the liquidities pumped into the system. Are Companies Looking to go public faster because of it . I think the sentiment maybe two months ago was certainly not the case. But as we for his guard to today, given the but as we fast forward to today, given the money inject the into the market, given the rhetoric around infrastructure and other spending bills that may drive a faster recovery, i think that sentiment has changed pretty dramatically. I know a lot of the companies that we are spending time with just a month or two ago were sure thulled put their plans on pause. Today they are actually getting a lot more aggressive about preparing and considering to take advantage of this market. The market has recovered i think faster and stronger than anyone expect the. I certainly would have lost a bet back in march if you would have asked me would the market be where it is today two months after suffering what we did in march. It has recovered quickly. What are the limitations here . The biomedical market is a specialties for jeffries. Is there a market for everybody . Are there limits . Sure, there are of course limits. Biotech is an interesting sector. It is one where we are very strong. We have done more i. P. O. s this year than any bank. We have done 18 this year. A lot of those are biotech deals. Hey enjoy a certain immunity from the Macro Economic deals. They have a defined medical problem, a defined clinic and confined user proceeds. That Clinical Trial will happen whether the economy is up or down. Those types of stories power through the macro environment, and they have been some of the boast performing anna s in the year. For other stories you really have to kind of dig deep into the actual individual story to understand whether the to understand what are the drivers of the business. We are seeing more and more Technology Companies start to get ready again. These are companies oftentimes that have a sales cycle or sales motion that is focused on the enterprise. Oftentimes they are related to sectors that have actually benefited from this work from home environment. Things like work communication, the Collaboration Tools havoc sell rated. We are all at homeworking with zoom and other Collaboration Tools. We have seen a lot of deals here, additional offerings, addons and a lot of stacks. Are you changing the way you structure your team in any way because of other types of deals we are seeing . No, we are not changing the way we structure the team. I have sympathy. We have a bunch of folks that are working harder than ever given the environment. It is always a little harder to do our job from our respective homes, but we havent really restructured a team. We have a very senior effort focused on this product, which is another i. P. O. Type that has been very active. We have done three of those transactions in the last couple of months. That team hasnt changed at all, but they are quiet busy, working very, very hard. We have health care, tech, consumer. All of our groups are working harder and kind of working more like 7 00 to 7 00 rather than 9 00 to 5 00. Thank you so much, cully davis. We will be talking to you again soon. Caroline, back to you. Caroline what a great conversation. Thank you very much. Cully davis with us. Coming up, we will speck with the coauthor of angryno, maamics. Despite never being richer, the world has never seemed more angry. This is bloomberg. Caroline in a new book, they argue the combination of Macro Economic and stresses of daily life have combined to produce a world that is increasingly unequal. All of this coming before the pandemic. Here to discuss this book is the coauthor of angrynomics, mark blyth. Hes also the director at Browns Center for economic and finance. What a time to talk about this, what a time to put out your book. You argue despite never being richer on average, the world has never seemed more angry. Can you talk to us about how you are looking at the better ways of finding life balance, practical proposals that could be applied to this post covid world . Mark we just missed a huge opportunity to do this. When you think about the covid crisis, investors panic