Between an unfilled gap 3259. That gap needs to be filled with some bullish moments. As you know, we are well above 250 100 day moving average. As you said, those smallcap stocks, big performers. Really beaten up so far. Finally getting we are out with earnings as well. One that you and i have been. Secondquarter revenue seems to eat gnificant significant beat. Revenue coming in at about three and one quarter billion dollars. The Forward Guidance looks strong. That might be why shares are up. And to why the Forward Guidance looks higher, what divisions within that is this are showing strength. That busyness are showing strength. Caroline the companys conservative forecast could add to the fact that it is likely to beat overall. Worried about the global auto sector, industrial gear shipments. The is a notable beat for second and Third Quarter. Maxim last week saying they will be teaming up to take on the likes of texas instruments. Revenue for the Third Quarter looking pretty strong for that business. Lets get the take from gp morgan Asset Management strategist jack manley. Maybe it was time to see many of these companies beat, but it is all about the forecast for the Third Quarter. Texas instruments is one of those sectors that perhaps has not been eaten up not been beaten up as much by the stayathome moves as others. If you are looking perhaps not just within the United States in asia asternally well. Jack earnings, probably the most important thing we are getting this quarter. Unique in quarter is that the First Quarter did not give us a whole lot of guidance. We were kind of left blind out there. We have always said that rockets more than anything hate uncertainty. Clarity is required for a market to perform well. Moving into the Second Quarter earnings season, actually getting some guidance out of these companies, i think is enormously important. It should help to shore up guidance and accurately price these things. I think we will also and up seeing, the technology and adjacent names will be able to weather the storm in some capacity and perhaps on a relative basis beat out what you are seeing in other set your in an that is resilient otherwise turbulent world. At jp your colleagues morgan are looking at an additional 65 million of fallen angels the rest of the year. How were you looking at downgrades from Investment Grade the lowyield, given yield environment . Jack we knew that there was already this risk of socalled fallen angels. Corporate leverage was one of the hottest topics of most of our discussions over the last couple of years. The fact that this persistently low Interest Rate environment allowed for some of these socalled Zombie Companies to pop up, companies that were able really through debt, not establish any profit. These were the companies that were proportionally at a disadvantage when it came to downgrades. What has happened recently with issues,ash flow shutdowns, has exacerbated this issue. The fed has come in with an extraordinary amount of buyer power. A number of different facets of the Financial Market including those socalled fallen angels. I think there is some implicit support for that market. Dipping your toes into credit a little bit could be warranted. Spreads blowout as wide as they were during the heat of the covid crisis in march or april. I think there is a limit to the upside that investors can look for in credit markets. Jp Asset ManagementGlobal Market strategist, jack manley, thank you very much. As we look towards whatd you miss . We will be discussing all things to do with europes unprecedented stimulus push. This is bloomberg. Caroline from bloombergs World Headquarters in new york, i am caroline hyde. What you missed was a faded to the close. Technology stocks, todays under performer. Meanwhile, a massive stimulus deal. Eu leaders agree on an unprecedented 750 billion euro infusion. School is out for the summer, but for how much longer. We speak with the ceo of the National Academy foundation on handling Virtual Education and the impact of the coronavirus. Taylor we are awaiting snap. Spending. Ck in ad again,k that snapchat, and wall street, secondquarter daily active users lagging estimates. Revenue beating estimates. We want to continue to look at engagement. Some of these strong shelterinplace orders. Act of dailymaybe users are lagging. How do you turn that into some of the monetization opportunities and that revenue opportunity . Users, 238 million. Analysts were looking for about 239 million users. Caroline it is like netflix, a stock that has run up so hard. If you are not going to smash it out of the park, you are going to be hit in terms of your share price. A slight mists on daily act of users. There is still that cloud hanging over snap, off by some nine percentage points. Even though secondquarter revenue lived up to ktok, theons, within ti discussion is whether it will not be so prevalent within the u. S. Texas instruments managed to beat in terms of expectations. Helping the share price of intel as well. Third quarter revenue better than anticipated. 3. 25 to 3. 5 billion, well ahead of what the market was looking for. Secondquarter revenue also beat. Taylor in the middle of earnings season, we also got that massive stimulus bill coming from europe. Look at eurodollar here. Yesterday, we were talking about some euro strength, the highest relative since january 2019. Your continuing to see some further euro strength here on that package that has been half grants, half low Interest Rate loans. After all these days of tough talk, European Union leaders have agreed on that stimulus package. I do want to bring in some of the leaders on that. Listen to what they had to say. The stakes could not be higher. The differences remain very great, so i cannot predict whether we will reach an agreement. I would say less than 50 but lets be helpful. Dutch man is the real responsible man. The majority of the Member States trying to come closer to four countries but they need to also make an effort. We need to come up with a response to arguably this biggest crisis of the European Union. Historicaltaken steps we can all be proud of. Signal to a strong europe, to europeans, and to the rest of the world. Taylor for more, i want to. Ring in tina fordham great to have you. Talk to me little bit about what you see is the big win for this deal. Is it the fact that you are able to get 27 member countries together and agree to something. Tina it is rare that you will of support the words of politicians who are very prone to congratulate themselves. In this case, lets give credit where credit is due. This agreement is a genuinely historic rate through at both the political level, as we have said with the agreement of Member States, and at the eu integration level. Which has really been the stumbling block for investors to believe in the durability of the eu has a longterm prospect. Caroline do you see this as needing full solidarity . Do you think the existential crisis question is behind us . Tina it is easy to poke holes in this deal. It is less than the Member States wanted. It does not put pressure on hungary and poland for their problems with the rule of law. But it does send a very important signal, first of all to the citizens of eu member. Tates italy and spain, who had been hit hard by the crisis, were becoming euro spectra euro skeptics not because they wanted less europe, but they wanted more europe. And we can see what happened to bond spreads today. It is not quite euro bonds. But i think any german economist you would talked to the past five years would have told you that this sort of agreement was impossible. The skeptics have been proven wrong. I have thought it was possible because the political winds are turning. Taylor is the composition loans rants and should we see more grants since this is a pandemic and no ones fault . Tina it is a really important point. First of all, it is a huge number. It did come down on the side of grants. Ofember the degree conditionality and austerity members that were imposed on the southern Member States really also brought us closer to the populist fears that had preoccupied many politicians and markets for a long time. I think the dutch Prime Minister got some of what he wanted by bringing that number down. The dutch have an election coming up soon. The italians and spanish get what they want given that they dont have to go to the dreaded european stability mechanism, which is regarded as quite onerous. A rejection of those austerity measures that were so unpopular with citizens. Caroline europe took it to the wire, four long days of negotiations. We now turn our attention to the wire that the u. S. Will be treading as well. Hopes that congress can pass further support for the u. S. Economy. How many calls are you fielding in how much do you expect terms of fiscal support on this side of the atlantic . Tina you put your finger on this very important dichotomy at the moment. As an american based in europe for the past 20 years, i spend a lot of time kind of interpreting for investors the idiosyncrasies of u. S. Politics for nonamericans and the other way around. Thepe has defied stereotype. Return to economic , weth and a way out of this can see a second spike where countries have reopened. I was in italy last week. The United States is really facing a perfect storm. Yes, i think there will have to be a further round of stimulus. Is political debate completely different. That some might be used to being on unemployment and it is a disincentive to going back to work. Bear in mind, my focus is political risk, things that can impact election outcomes, environments. The u. S. And europe have both turned on the tap, the big bazookas. I think in the United States, the core Coronavirus Response colliding with elections coming divisions about the best way to deploy these measures. Taylor thank you to tina fordham, avon hearst partner and head of global strategy. We go back into the earnings world. It is what United Airlines is calling the most difficult financial quarter in their history, a net loss of 1. 6 billion, adjusted net loss of 2. 6 billion. Adjusted operating revenues down yearoveryear. More importantly, on the humanitarian perspective, employees took a voluntary separation. Daily cash burn in the Second Quarter was 40 million per day. The cash burn has been a real focus here of analysts. Second quarter operating revenue up about 87 yearoveryear to 1. 5 billion. 9. 31 persing about share, a little bit wider than what analysts had estimated. United airlines posting a bleak picture. Ofthe tech sector, concerns certain environments. Increased their daily active users 17 , increased revenue 70 , but the net loss widened. Shares up so far this year. Fallen 6. 5 , shares have as much as 12 . Pinterest, at one point, down by 5 , now off by 3. 5 . Coming up, we discussed politics a little bit more. Two controversial trumpet ministration nominees to the Federal Reserve board of governors got approval. This is bloomberg. Taylor President Trumps and the street president Trumps Administration is moving closer to filling two board seats. Tolton was an advisor Trumps Campaign and waller serves as an advisor to the st. Louis fed and is wellknown known for his position against raising rates. Again, the Senate Banking committee, what is the next hurdle . Next, it is onto the floor of the senate, once Mitch Mcconnell can find some time to do all the processing and get a vote of the full senate. Both of these candidates have to get 50 senators to back them because of course if there is a tie, Vice President pence would break it in their favor. That means they can only afford three defections. Chris waller is going to sail through this. He is a pretty well respected economist, something of a maverick. But his views have proved to be quite prescient. He was against raising Interest Rates quite a while ago, said they should not worry about it. That has proved largely correct. He has been, unorthodox, but he has backed that up with research and arguments. Judy shelton come on the other a fight on our hands, or the Administration May have a fight on their hands in the senate. Mitt romney from utah has already said that he has concerns about her nomination. We are not really sure yet how it may turn out. Caroline a reminder, she is pretty unorthodox, pretty controversial. Chris she is highly caroline we have some technological issues with chris. Can you hear me . We will have to discuss a little bit later. He was going on to really discuss how shelton perhaps previously a supporter in return to the gold standard, and now many are worrying about her independence from the Trump Administration if she were to join the Federal Reserve. Lets get a check on the latest headlines. Boeings comeback for 747 max. The agency is satisfied that boeing has completed the software and hardware updates. Theof the few black ceos in yesterdays quit after year on the job. Resigning suddenly after allegations of inappropriate behavior. Isestrys board investigating allegations that he had posed as a photographer years ago in order to lure women into a relationship. Bloomberg,een by robinhood said its efforts would be best spent strengthening corporate businesses in the u. S. That is your business flash update. Lets get back to some of these s. Y earning United Airlines, one of them. Taylor and the press release in the first sentence but this better than i think any of us could say, saying this has been the most fickle financial quarter in our history will posting an 87 decline in operating revenue yearoveryear. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. Touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Caroline the debate on whether to reopen schools in the fall continues to rage on. Down, a as schools shut notforprofit developed a National Network of career academies with a presence in some of the hardest hit states like new york, florida, texas. We are joined by the ceo. Talked with about National Really foundation and you build schools within schools. When schools had to work from home has many did, and now are shut for the summer, how are you , andg a pivot to online how do you help those which are not as well serviced and wifi, coming of it he . Connectivity . Day, ahe end of the school cannot do anything alone. And that was before covid. We decided we needed to open up. So we pushed everything we had online to everyone. Our design is built around the notion of a publicprivate partnership. Schools work with companies to help young people get exposure and experience in the work place. Those companies stepped up around the issue of devices, hotspots, methodologies to make sure we can get an even distribution of content and opportunity to our young people. Stepped up,ep offering hotspots, putting them on buses to take them out to those rural areas that did not have adequate conductivity. At the end of the day, it is about innovating, finding solutions in this moment, not letting our young people fall behind. You sound really optimistic in finding the Silver Linings and what are some really dark clouds when it comes to not only a Global Pandemic but also a global moment of reckoning when it comes to inequality. How do you find your students responding to this and making sure inequality does not accentuate when others perhaps otherset the learning are able to afford . I get to listen to and see our young people, amazing and ability amazing adaptability and willingness to approach this new world we are facing with optimism for our future. I think what is really important for nonprofits, governments, structure a do is Partnership Around young people and make sure some of these new innovating companies are operating in partnership with the young people, not just creating a product they hope someone will buy. I am hopeful because i see people carrying desperately around addressing some of the issues around social justice, covid, wes moment of really are feeling separate. I am worried the most about people not coming together and addressing the challenges of their community together. Taylor the debate has really raged on about whether to open up schools or not. Im curious about what your thoughts or gap that has been created from this pandemic if schools do not reopen, the lack of technology, the lack of a strong leader at home that can oversee some of the homework. Absolutely. I think it is so important that nobody believes there is a onesizefitsall. Every community is different. Around theat leaders country that partner with us. D. C. Before covid, during covid, after covid. They are building plans based on the knowledge of their local communities. They want to make sure that their teachers, employees, and students are safe. I think there is an important moment here for us to acknowledge that local leadership knows best with a situation they are in. Bu