Reopening. We will speak with a Lieutenant Governor. She will be joining us. Partner chairman per perspective on the company front. We are getting some data right now. Existing home sales, monthtomonth on month, 9. 7 , that is significantly worse than the market was anticipating. This is the month on month number. The Economist Survey suggested the number could be 5. 6 . Set ofgnificantly worse data coming out of the u. S. Housing market. U. S. Sales coming through at 3. 91 in totality. So, the u. S. Housing market is in a word place. In some ways because of government assistance. We have not seen a collapse in prices. This is transaction. Prices are fairly buoyant. Later on this year, things could get trickier. At the moment, looking at the monthtomonth, that number worse than anticipated. Alix it raises the question, where do people want to live as areas reopen. New york, as we mentioned, and during the second phase. 300,000 more people returning to work today. Outdoor dining, and percent retail, officebased jobs, barbershops and more will reopen. Joining us for her investors take is the Asset Management infrastructure head. It is great to get you, nora, on the program, because as businesses look at restructuring officebased, what does that mean for the Real Estate Market . Ora thank you, it is great to be with you. I am speaking to you from our headquarters in new york city. I am thrilled to see colleagues again. For me with four young children, i appreciate having the separation of work and home. Many ceos across different industries, Technology Companies or Financial Services companies, they are thinking differently about their real estate footprint. For many Office Workers, the last three months have been a revelation. The technology is terrific. They have gotten back community time. For some, they are experiencing a Better Family situation as a result. There is a positive for Office Landlords in the sense we are going to begin a wave of the edification. Some had gone to 100 sky news square feet we had gone to 170 square feet per employee, now that will double. We have to be careful in predicting major changes, while in the midst of a pandemic. Certainly, some companies have cultures that thrive coming together physically. But we need to think about different scenarios for work and the future, it could mean something as simple as more flexibility in working from home. ,t could mean distributing the workforce across more markets particularly the less dense markets. Seeone positive, i do not this getting a lot of air time, but the Flexible Office working, does that bring more women into the workforce . And i would say the impact of this will reach far beyond Office Landlords, it will affect residential values, it will affect street retail, it supports Office Workers, it can affect schools and city budgets. The good news, you have the ability to quickly pivot to reach the suburban Office Locations and invest in the beneficiaries of the additional connectivity from home, the cell towers and data centers. Guy good morning. You talked about decentralization. I am wondering, does that upset the working from home . You are going to bring some people back to the office, but you will need more space for them. Does one offset the other . Nora i think it will have a long tale to it. Housing moves in megatrends. We have been in the dense workspace for a decade. I think it will have a lasting tale. I think in the end, the answer is how to work from home plays out, we do not know the answer yet. I think for the majority of companies, they will keep be similar footprint, but they may distribute it differently, maybe not locate all of it in urban markets, but spread it across more locations. Alix how is the rent faring . Rents, andpay their what is the backup to that . Nora in retail you have talked about the difficulties facing physical retail, the crisis has made that much more difficult. Rent payments continue to be challenged in the retail space, the fact is ecommerce sales have spiked. It is difficult to see how much of that spending ultimately goes back to a store. We are focused on areas that the consumer previously preferred to shop at in person, grocery stores, they have seen an advance in ecommerce penetration. This is quite a consensus view to be negative on retail. And to the extent that you see more suburbanization occurring over the next decade, if that is the next megatrend, that could be a positive for the malls. Those are built to serve the suburbs, the trend of the 1950s, 60s and 70s, so i do not think we can write their death notice cap. Yet. Eir debt notice death notice yet. Guy we have talked about how living, the rv market, the implications of that being a good investment. Thinking about other investments that the pensioners have out there as well, what derivative investments about flow from covid19 in the way that behavior changes one that stood out to me this morning, as i was thinking about new york, was parking spaces. Huge number of people avoiding mass transit, driving their cars into big cities. Am i going down the right track . Are there other investments in terms of the way that property is functioning . Nora that is a good point. I want to talk about the rv resorts that my colleague mentioned. That is the perfect vacation during this time. It is literally drive to, because you do drive in your rv, you do not have to travel on an airplane, stay in a hotel, it is affordable if you have already put cost into purchasing the rv. So there are a couple of those that own the land, the resort itself, where you pay to park. I think the two most positive areas coming out of this are in the Technology Real estate area and the logistics and Industrial Real Estate. Our guiding thesis right now is the pandemic has accelerated years into the future of digitalization of everything, including ecommerce penetration, telemedicine, virtual doctor visits, to the massive increase in Video Conference for learning, work and exercising. Some of that is temporarily elevated. But much of it will not refer back. That represents demand for data storage, cloud connectivity, so that has been terrific for the data centers. Logistics and Industrial Real Estate is interesting. You have that initial bone for more bump for more ecommerce, but what would be better is the reshaping of global trade. If companies decide to bring more manufacturing closer to home, on shoring. Some companies will decide they need more inventory available. That could have a positive impact on logistics and Industrial Real Estate sectors. Alix camping, he is obsessed with the camping. Gy, i will get you guy, i will have to get you a camper for your birthday. Guy i am upset. Alix are you going to get one . Guy i think this is what youre going to ask. How was the trip to work . What is it like being back in the office . We want to know where this is ultimately going to mean . We want to understand how do good to work, what was it like going up in the elevator . Those kinds of things. Nora i did driving to work. I used at the parking garage. You will see that for some time. We are starting a very slow and gradual reopening at goldman sachs. It is very safe to be in the office. Safe. Personally there are protocols that have been taken in the last few weeks in order to make people feel safe being here. And again, every company is different. For our company and culture, being together is really important for us, so i am thrilled to be back inside here. But we recognize it is not the case for everyone. So, we will see how this plays out over the next few months, as we reopen in new york and in other states as well. Guy it has been great to talk with you. Reedon, in new york city, thank you very much. We are going to talk more about this coming, up on the new york city reopening, we are going to look at how the government is successfulhat a reopening looks like. We will be joined by the Lieutenant Governor of new york. The conversation is next. This is bloomberg. Alix really quick on breaking news. The Supreme Court is narrowing the power of the sec to recoup gains, they are limiting power there. Wind upd that they repainting credit investors, that it will be capped and only used to reimburse those particular individuals that were affected. We will bring you more information as this comes out. This is bloomberg. Here is first word news. Victory for President Trump at the Supreme Court, justices rejected a challenge to the 25 tariff on imported steel products. Some have negotiated deals to avoid the tariffs, but they will still be in place for much of the world, including china and japan. Present trump is urging republicans to oppose a House Democratic bill on Police Reform. The measure is expected to come up for a vote this week. The present says the measure would destroy our police. The sponsor of the bill says the president does not understand it. Senate republicans have their own Police Reform legislation. He will president says consider running for a fifth term in 2024. He argues the hunt for a successor risks paralyzing the government. On july 1, russians will vote on the most sweeping changes to the constitution since it was adopted three decades ago. Putin towould allow stay in office until 2036. And the economy and the world facing a fresh turtle, covid19 threatening to keep consumers on and, according to the World Health Organization. Cases of the deadly virus rose by a record for a single day yesterday, the biggest flare up ok place in the u. S. And brazil. 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. Just a pivot off of that, new york is reopening. I just booked my daughters haircut appointment for wednesday. What does a saved transition main . Is the Lieutenant Governor of new york and joins us now. How did it go this morning . We are expecting 300,000 people to return to work. How did it go when they came in . Kathy from the reports, it is going well. I am excited about people feeling like we are coming out of this self induced coma, that we are getting back to a sense of normalcy, even if that means you are still wearing a mask. That is a small price to pay. New york has reached a significant milestone, going into phase two, where your daughter can get a better haircut. We can all go to the barbershops. 50 of offices can be filled with employees. And outdoor dining, we have to get our restaurant workers back and let them work. So, tremendous progress made in new york city. An amazing turnaround. Guy we were talking to our last tost who drove in to get work. I am wondering how many other people will do the same thing, whether this is a longterm trend for new york city, and whether or not the city can cope with that kind of congestion. Days, people early will be driving their own car. The governor has made sure that our Public Transportation system, the subway, will be spotless. It is sterile. It has been cleaned everything going night for months, making sure to make it a safe environment for everybody said they do not need to worry about contracting the virus from a surface. Social distancing is harder there, but it is something we knew would be a challenge. But people are starting to feel comfortable when they see others wearing masks. I would not go anywhere near anybody without a mask. That makes you at risk. We have reduce the infection rate. The governor announced that we have the lowest infection rate in the nation. And, sadly, we lost more lives yesterday, but 10 people compared to nearly 800 a few months ago. So we want people to feel confident to come back to work, but do it in a smart way, keep wearing the masks, keep washing your hands, stay apart from other people and it will be fine. Alex the chairman of the nca was on bloomberg and his said the agency will run out of cash by august unless the Senate Approves more economic stimulus. Can they continue the very strict and specific measures to keep people safe if they run out of cash . Kathy we will not compromise on public safety, that has been the hallmark of our approach to this. The governor has led the nation in making sure that we put health first. So we will not be backsliding on our efforts to make sure that people feel comfortable into safe, and receive the services they need. So we owe that to the public and we will work this out. We are looking to washington to do what is right. This was not a new york problem, this was a global problem and it hit places like new york very hard, and we need the federal government to give us assistance so we can reduce and get back to the revenues that we were at. But also make sure that the cost of dealing with this has been recouped. One cost is the cleaning of the subway and renovations, but we will not compromise public health. In thelf of all states u. S. Advising case counts, as a result of their economies reopening. What are you watching for in terms of the key milestones in this reopening that we are seeing in new york, and is it too early to roll out a second lockdown, a more localized one in its nature, but nevertheless putting back and restrictions . In restrictions . Kathy the numbers are proving that when you follow the signs and facts that lead you to a slowly, phased in rollout that are smart, unlike other states that said we are tired of this, and do what the president says, reopen the economies, those are the states in trouble now. We have the lowest infection rate in the nation. 3. 3 million new yorkers, our infection rate went from 50 of people being tested, being positive, to 1 or less than 1 yesterday. That is extraordinary. We do not have to talk about lockdowns. We are looking for, if the rate of infection stays where it is, we are good. If it goes upward, we can identify if there is a hotspot, is it one workplace, is it a farm in upstate new york, a subway stop . What is going on there. We have contact tracers who cant identify who people came in contact with, isolate them and to stop the spread. That is what we are doing with more success than any other state. We will keep on that path. On that, does that mean that you have rolled out any second lockdown ruled out any second lockdown . If we have a resurgence, is it off the table completely . Kathy we are not ruling anything out. We have seen that the virus is unpredictable. But i was saying that we are not preparing for a lockdown right now. We do not need to right now, but if anything happens that is unexpected, we will have an Early Warning system, watching the numbers, also from testing and contact tracing, and we will know how to address this. We are far better prepared to deal with spikes in cases than we were in march. Now we have the bed capacity. We have ppe. We had no idea how many ventilators and masks we needed. And at the whole idea that we have control rooms around the state. I manage control rooms for western new york. Neede saw early on, if we to isolate, we do that, we test other people, and we can control it. That is why new york is in a different place than other states. We keep making sure that we get it right. The Lieutenant Governor of new york, kathy hochul, good ul, goodhoch good look. We will talk more about the reopening of new york later in the hour. We will look at the corporate angle. We will look at companies as the state reopens. That conversation is coming up later. This is bloomberg. It is time for your Bloomberg Business flash, a look at some of the biggest stories right now. President trump plans to put restrictions on work visas. An estimated 240,000 people seeking to work in the u. S. Across industries from technology to hospitality. The restrictions would include the hb1 program for highest go to workers. Joe biden raised more money than the president and make. The democratic candidate and his allied committees brought in 80. 1. 1 million million. The president burned or three more cash and says continue to sink. He has spent almost 25 million, twice as much as joe biden. The disappointing turnout at his rally in tulsa was the latest warning sign that his campaign was overshadowed by criticism by his response to the pandemic and protests against police brutality. The president has fallen behind in National Polls in surveys for key battleground states. That is your Bloomberg Business flash. Guy thank you. Lets talk about that for a moment. It is going to be interesting to see exactly when the markets start to price in what will be an interesting battle in november. The president certainly seems to be behind at the moment. This is what the data is telling us on the bloomberg terminal, as you can see. Joe biden in blue, President Trump in red. Biden looks to be ahead. But are we starting to see it show up the markets . In the markets . Alex if he was not going to be reelected, it would be negative because of corporate taxes, but the certainty is the problem. Sachsccosted from goldman wrote specifically that they expect the potential threat of a viral second wave, and in the u. S. President ial election, will increase in equity exposure in the nerd term. Near term. The good news is already priced in, now we have to deal with the uncertainty. And that goes for corporate taxes, too. Guy it will be interesting. I guess in the next hour, it will be interesting to talk some the strategy, and why are favoring europe. And that is because it does not have the risk of what is associated with what will happen in that election. This is uber. This is bloomberg. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 15 a month.