Lets go to kailey leinz. What ist to talk about leading todays session. It is big tech names like apple. Of course, they are heavy, seen insulated from any kind of virus resurgence. What is second to tech come underneath the surface of the s p, is utilities. Usually we see utilities getting a boost from lower yields that are kind of high dividend stocks. More the story is that it is summertime and things are starting to get hot. We are expecting temperatures over 100 and some parts of the american west. That is good for electricity companies, the likes of dominion higher between 2 and 5 . Stayathome Companies Like wayfair, a big beneficiary over the course of the pandemic. Other big beneficiaries have been range resources and of course oil companies. Wey are up around 200 as have seen oil recover from the negative pricings we saw a few months ago. Moderna as well. Really big news we have seen. We have also seen dramatic moves in the bond market. We have the fed coming in with unprecedented asset purchases. That has left a steeper curve. Are seeing the trade earlier in the session where yields were lower reverse a little bit. Sitting at around 37 basis points right now. Vonnie kailey leinz, thank you. Holding its worldwide conference virtually, preparing to announce it is replacing intel chips with its own processors in met commuters mac computers. Someone taking the stage addressing racism in front of a community of developers. For more of what we can anticipate, lets get to emily chang. Emily, beyond the obvious, what else from this week . This is the first wholly virtual wwdc. We are watching tim cook streaming and an empty auditorium. Normally it would be filled with developers. We would be there, but today it is all remote. He opened talking about racism. We know that tim cook has been fairly out friends on social issues. Entire a memo to the company about apples position on this. Thatderstand and believe apple will announce a full shift from intel chips to apple designed and apple made chips. They need developers to be on board with this. For the hardware to work, developers will have to refresh their apps. Facing pushback from developers for that 15 to 30 cut the apple takes from the app store. , to antitrustnion two antitrust investigations into apple pay. Complainingvelopers about a popular email address apple was removed from the app store. I am eager to hear about tim cook addresses this pushback because they need developers to be on board with the changes. Vonnie it has always been a hypo event. Hype event. It has been a carnivalesque atmosphere. This year, probably different. Are lyingaying people on apple products amid the pandemic. There are the two biggest social forces he has addressed, the George Floyd Killing and the pandemic. And of course, that is good news to Apple Developers that tim cook sees a Bright Future for apple in terms of services revenue. Services, and these developers are what drive those. It is a huge business for apple. Tens of millions going into services. It is what they needed when you are looking at a potential slump as people buy less devices, we are in the middle of our recession. Apple under fire from u. S. Lawmakers as well. We spoke with representative cipollini, chairman of the antitrust committee, which is looking into not just apple but big tech in general. Thusook is the only ceo far that has not committed to testifying. Cipollini told us he would subpoena tim cook and all these ceos if they did not participate. He did not mince words about what he believed to be the duopoly that is google and apple. This is very concerning. The use of the app store, developers are basically being forced to pay a ransom of 30 or they are denied access to that market place. Appledentally, google and arrive at the same thing, 30 . That market power is disturbing. In a competitive market, he might have a percentage as low as 2 , like credit cards. Even the credit card market is not competitive, but it is still 2 . Robbery30 , its highway it is highway robbery. Emily pretty strong words there. I would add that apple just in 14, whichunveiled ios will work across all the mobile devices. We will be looking for some other Software Updates there. Certainly an important moment for apple, so critical keeping people connected as we all work from home but also facing the scrutiny of lawmakers at home and abroad. Is sayings, ian king that tim cook is more animated than he normally is. At live events i guess he has to. All this strain with these antitrust investigations taking place. He is moving quicker than he has in the past. He has already addressed covid19 and also the topic of racism, inequality, and injustice, which is something he says he recognizes. Thanks to emily chang for the rundown. Make sure to tune into Bloomberg Technology this evening for more updates. We will go live to the Bloomberg Global summit. Will have Steve Schwartz talking to us. This is bloomberg. Vonnie this is bloomberg markets. Lets get a quake lets get a check of the markets. We started off a little bit indecisive. We have definitely taken a direction higher. Up. 6 and the other two indices higher. Apple,daq up 1 held by which is having its developers conference. Crude helping as well. It is up 1 , above 40 a barrel. No move for the 10 year yield. Apple moves higher and higher. Stage. He says the u. S. Has to do better on racism. He says it is not living up to the ideals it was founded on. He also talked about the pandemic. He said that apple has helped by the pandemic with the pandemic. He says it is the first time apple has held a Worldwide Developers conference virtually. Moved onto products, talking about the ios, the home screen. Of ios will bets improved and an updated home screen to go with that. Library is apple going to automatically organize the apps come of the first time that that has happened. It will help suggest what apps might be needed. This is where we get into controversy because the u. S. And the eu are investigating apple when it comes to revenue subscriptions for the apps. We will continue to follow the wwd conference. Lets go to the bloomberg invest global summit. Sitting down with Steve Schwarzman, blackstone chairman. We are talking to each other, not wearing ties. Now and the same place. Tell me about the investment environment. How has this been for you . This has been a pretty remarkable environment. Know, around a last year in, if somebody told you we would have the voluntary closing of the worlds economy, with certain exceptions to just keep food moving, and other things, you would Say Something like that could not happened, and if it did, it would result in a global depression. It just was and not on the page. Directionsct, those to almost every country to stop your economy did occur and unemployment has gone of massively has gone up massively, but we have not had depression. We reason for that is that have learned from the past and you have had massive government ofervention, trillions dollars of moneys to people who need it, to in effect replace the lost revenue from shutting down our economies. That first big stimulus bill in the united states, followed by, really, a very, very large followup, the central bank of the united states, the fed, is pumping unprecedented peace time moneys into economies. And in fact, the amount of deposits in banks because money was transferred to people, has exploded. We are awash with liquidity that was necessary to give you some idea. Around 21 billion excuse me, trillion dollars a year. We are sort of missing 6 trillion coming in. Somebody has to fill that hole. That is what all these stimulus bills and the fed are, in effect government in effect, doing in a simple way. The stock market is down. And now it has bounced as if nothing had occurred because of the liquidity and support from the fed. Let me ask you about that. That, if i may, specific point is one i went to understand from your perspective, which is this apparent disconnect with every headline we are reading every day related to virus cases going ,p come of this medical crisis and the stock market, if i look at my own 401 k , has rebounded. Thet just, basically, liquidity that has been pumped into the system . Help me understand this gap. It is mostly liquidity and the system andn also some elements of confidence. You have vaccines in the process of development. 04 130t that we will go 130 seemste 0 for remote. I think people are much more optimistic that that is going to occur on a timeframe that is way different than the development of vaccines was in the past where the fastest one was like 4. 5 years and people have optimism that, within the next nine months, we will have enough positive could be a year outcomes from trials that we will get there within the year to start really producing largescale vaccines. There are other therapeutic breakthroughs that are occurring if you get the virus. The second thing i would say about these cases going up how could one believe that they would not . I do not find that surprising. People have been locked up in their homes for two to three months. When you let them out, they will be more socialization there will be more socialization and people not understand, truly, that this can get them sick. That, in the appropriate government response and the appropriate government response will be to, first, warm people. Democracies, they apparently would like to see bad things happen before democracies respond. I expected this to happen. I think the markets did. That will be put under better control because there is no option. Nobody really wants to get sick, so you will have change in behavior as the number of cases goes up. And eventually, that will be beaten down. See a big v in terms of the economy going up for the next few months because it has been closed. And as people are allowed to go back, the economy will really respond a lot, but there is only so much the economy which is highly complex can respond just because not all things go up equally and it will take quite a while before we sync up and get back to 2019 levels. So steve, when i think about your experience, i know that blackstone is a place where you are always looking at opportunities and new opportunities in many ways. I think back to the turn of this century and the big bet and a lot of investments you made in real estate. I think about the last financial crisis and how heavily you invested into credit. What is something you are doing now . Take us inside blackstone that might help us understand opportunities that exist in this crisis. This one is different. They are always different. The easy things to have been doing was, you know, when you hit that bottom because he did not know it was the bottom, to be banking significant to be making significant investments. Invested in securities and that has had a happy outcome. That, more in addition to and that is the first stage. Each of ourt businesses are seeing interesting opportunities, and, you know, as technology is changing things and people are staying home more, the areas where you would want to invest, whether it is technology or health care, are being modified. Certain older economies that are bound to be disrupted, those types of companies are places where, unless you have a really remarkable management, you would be wanting to stay away from. We can see different parts of the economy opening faster. Some things were closed completely. Interestingly, in the hotel , one hotel in las vegas is completely closed. The first weekend it opened, it was 45 filled. That is an astonishing thing because las vegas is barely open. There will be some surprises. Not all hotels. But as you look at the gradation of places where you can drive will recover much faster. Places where you have to fly will recover much slower. If you have to fly over oceans, those will be the slowest recovery types of investments. Each of our businesses is starting to really put out money. Ouriness lines business lines. And there is a much better tone. To do private investing, there has to be confidence on both sides. The people investing think they are getting fair value and the people who are buying think they are getting their value, so there is an overlap. If you are doing private investing, sellers do not like to sell at bottoms. ,ou can buy liquid securities cmbs and other things that are stacks where you can find the security where you think it has the most upside, even if you think it is going up halfway from where it started. Some of these will continue to go up. Others have already returned to par. Outs an issue of figuring which of the underlying businesses are going to return to health. Thate taking a basic view it is not particularly interesting to buy, you know, securities in challenged businesses, challenged Business Models. Those things trade it very deep discounts, and at those Companies Make it, that is a good thing, the chance that some of these will recover as nicely as you want is perhaps compromised in this cycle because of the impact of technology and changed behavior of people. We have made a huge amount of money continuing to build our warehouse platform. We are either the largest or the secondlargest in the world. We bought about one billion square feet of warehouses. Why did we do that over the last 10 years . We saw the Online Business exploding and we saw that regular retail was going to get really hurt as consumers changed. The pandemic has accelerated trends that might have taken five years and made it happen in three months. We are very mindful of these ares of changes and investing around those types of changes. So, steve, when you think about how wall street may change out of this, it clearly changed after the financial crisis and, candidly, blackstone was a big beneficiary of that. Your business grew at an enormous rate. How does wall street change on the back of this particular crisis in your estimation . If you take the different parts of wall street, the Banking Community, i think the Banking Community went into this crisis very strong and they are going to come out strong. That is a big change from the last financial crisis. Area, ioneymanagement think the index Fund Business will continue to gain share because it has not been battered all to ben bad at along in equities. By the same token, the alternative class will also continue to attract a lot of money. Managers in the middle were sort of disadvantage. I think their performance will end up being better than people thought. So there will be a little more stability, but basic trends there, Steve Schwarzman blackstone founder and ceo. If you want to follow on, go to the bloomberg terminal. Annualup, apples developer conference underway. We will discuss. This is bloomberg. Welcome to bloomberg markets. Vonnie i am vonnie quinn. We are joined by our audience. Here is what we are following. Apples worldwide developer conference underway. The retail event already making some headlines on social issues and iphone development. The bloomberg invest global summit. We are hearing from the president of the Worlds Largest exclusive shortselling investment firm. That is coming up in a few minutes. Amanda. A check on the markets. We are seeing positive action. S. Are watching the tech waiting to see if there is any reaction from the apple conference. We are seeing positive action. The s p still broadly higher. At 2 move higher for Apple Computers as people focus on some of the new features they are talking about. I want to welcome kailey leinz for a check on the overall markets. Obviously, there has been plenty for these markets to chew on in terms of reopening and fears of second waves and some news on the tech front. Open higher even though futures on the s p 500 pointed to a positive open. That is because on friday, futures fell after the close. That level of resistance is really 3115. At this moment, we are just below that level. We will meet that resistance once again. We are trading around 3113 on the s p at this moment. Investors seem to be not worried about the fact that covid cases in the u. S. Are rising. When you look at the equity market, what is outperforming is really big tech, microsoft and of course apple ahead of that conference. They are seen as more of a hand insulatedmic haven from any kind of negative impact a resurgence could have. You or seen the likes of utilities outperform as temperatures are rising throughout the u. S. , boosting demand for electricity. Retail and apparel leading the economies move towards reopening. Here in new york, phase two. Retail can reopen its doors. I want to focus on the tech rally. Apple, microsoft, amazon keep climbing higher. If we see a second wave of the virus, they are seen as more insulated, perhaps even in higher demand if they have to if people have to stay home. They can better whether a worse they can Better Weather a worse economic outlook. Microsoft and amazon for their 1. 5. Each worth more than vonnie halfway into the session. Nda we are keeping an eye vonnie i was going to bring in david. Lets get to it. He has been following what has been happening on the Worldwide Developers stage. David, thank you for joining. We have had it tim cook address the social issues. Iphoned on to some of updates, giving us a drip by drip news flow from apple. Take what do you make of what you heard . It was striking, the serious way in which tim cook opened the conference by directly addressing the black lives matter movement, talking about a donation apple has made two related issues, and a program for developers, black developers and minority developers. They also explicitly mentioned the covid crisis. They rapidly transitioned to iphone. I have to say, i think the number of little changes in iphone os they have already unveiled are likely to be quite well received by the iphone users. They are addressing some of the areas people have had difficulty with, particularly finding apps, managing the apps they have, figuring out who they are talking to and a text string, which is always a problem. They have simplified that. There is a a lot of interesting things they have announced. In terms of the big things we think they might announce. What are some of the biggest you might be most excited about . Beid most significant would if they played up the move they will definitely make in the near getre on the mac itself to rid of chips from intel and start shipping max with their own chips start shipping macs with their own chips. I will be interesting to hear it will be interesting to hear what they say about maci