Technology companies coming up in front of congress. We know that Mark Zuckerberg will be taking questions and even delaying earnings. Taylor we are speculating here. We dont know why they have not confirmed that but we assume they are those hearings delayed from today. Stock Market Reactions, so priced to perfection. Unless you are revaluing them, the strongest Balance Sheets, because we are in as in a structural change, they are the only Companies Growing 20 with 30 , lets say you get a beat or meeting expectations, the Market Reaction has been a little bit to the downside with some of the smaller Tech Companies. Is Market Reaction post that interesting but a week later we forget about what happens after earnings. Caroline microsoft was down after earnings. Tesla had a big selloff last week. Sherry, we were talking earlier about the weakness of the u. S. Dollar. How much is that starting to have you looking outside of the United States . We had a call for getting into emerging markets. Where are you looking outside the United States . Sherry i think any u. S. Based think long andto hard about international exposure, even if there seems to be a little bit of wind at the back in europe. They are just passing their package, it is a manufacturingbased economy, export raised. They have a lot of work to do. It has not really been instituted yet. That combined with in the United States, if you are an income investor, why take on the currency risk if you can continue to look for Sector Opportunities in the u. S. That will pay you more than a 10 year treasury . Right now, the tech sector is many times the 10 year treasury. The difference with the comparisons from 2000, these companies actually have earnings. They have earnings, they are innovating in pockets of distribution that have been proven. 2000, 2001, a lot of those premiums were based on earnings that were not real. I think that is the big oference here, just a kind dovetail on your previous conversation. I would stick to the u. S. , look for second is that are paying you income. Extended duration. If you are going to buy a 10 year treasury at a half a point, why would you not own a great u. S. Company paying a dividend with a big cash Balance Sheet . Taylor talk about those calls for lower yields for longer on the u. S. Dollar. Jp morgan lowering the forecast to 80 basis points for 30 years. Assuming lower for longer and dollar weakness . Sherry it sure feels that way. We are starting to hear the sword, stagflation. Manager, over the decades, i think you cant rule alphabetletter in the for investors, that means you choosy aboutry where you are putting money in the market. Financial crises get reflected in stock markets. Credit markets caused them that is why the fed has been taking so much time shoring up the credit markets. That is why i think we will see stimulus out of congress so people have money to spend and cover mortgages. Long gains here, lower for longer. It seems very intuitive and common sense. I think we have to move into acceptance and understand how to navigate those waters. Romaine only a little bit of time. Im curious as to your thoughts with the fed. Crisis, financial coordination between the global central banks. This time, it seems like banks are just going on their own. Does it concern you at all that we dont have coordination on a global basis . The idea that we can have Economic Growth in one country but not necessarily another . Sherry it does. My instinct is the reason for this is that last go around, they tried to coordinate and it took so long because our monetary systems are set up differently. The fed can do whatever they want whenever they want with however much money they want to do it. They are not having to come up with a body to vote on a solution. Experience tells me that the fed looks back on that like, we are not going to do that again. We can move quickly and we are going to move quickly. Maybe there is an opportunity for the world to play catchup together. Right now, it kind of feels like everyone is kind of hanging their hat on the backseat. At some point, they will have to coordinate. That obviously affects the political environment as well and global stabilization. Caroline thank you so much for joining us today. Stay well, join us again. That does it for the closing bell. Whatd you miss . Is next, where we will be looking in on the next round of stimulus. This is bloomberg. Caroline from bloombergs World Headquarters in new york, i am caroline hyde. You missed a rally led higher by technology. We offset some of last weeks losses. S p 500 back in the green for the year. Meanwhile, it is a shopping spree. Some of the biggest u. S. Tech pot Tech Companies seeing acquisitions at the fastest rate since 2016. Stimulus showdown. Bloomberg has learned that Senate Republicans could propose cutting Unemployment Benefits to 200. A week first of all, taylor, take us through the moves are particularly dollar weakness. Taylor i am showing the short is a shins, given the futures market on the dollar. Take a look at this. On the right side of your screen, you are seeing six weeks of further dollar weakness. You really wonder how much of or is thereed in, more weakness to, . Ome . O c quick thanks for having me. Nearterm, absolutely. The stars have aligned against the dollar right now. What really got the ball rolling was the feds aggressive easing and Balance Sheet expansion. We saw similar dynamics in 2008 and 2009. Think adding to it now is the fact that it looks like the virus numbers are really going to impact growth in the second half. Everyone is pricing in a rally. Particularly in europe and china. Headwinds, and i think that will hold back the dollar. There is expectations of further fed easing. All of the stars are aligned against the dollar. Romaine when you look at the growth expectations, yield expectations, it does make a compelling case to go short the dollar. I think back to 2018 when we had that downturn in the dollar. That only lasted for a few months. I wonder, given how fast the shift has been to go short the dollar, could we see an unwind of that trade should powell say the magic words . There are so many crosscurrents and so much uncertainty going on. It is very rare, but the european economies are likely to outperform the u. S. It is just going back to the virus, many states reopened too soon. The numbers are going up. Until we get the virus under control, it is hard to imagine how the u. S. Can catch up. That another quarter this virusl we get numbers down. The fed has been the most aggressive, really planting the seeds for a good recovery in the u. S. Interested in what time dollar decides it will be the haven of choice and what time dollar decides it will be under pressure. Today, we are worried about coronavirus but it seems more hopeful about the federal reserve. What could flip us to once again being panicked and wanting to buy the dollar instead of salad. Instead of cell it. That the laste hasral risk off trading been more for the yen, swiss franc, and with gold. Havens could be the ones of choice. Correlations change, relationships change. For now, i dont think the dollar will benefit much as a safe haven. The fed has flooded the world with dollars. Ample liquidity. Taylor you mentioned gold. Lastme you say gold the few weeks, our ears perk up. You talked about correlation against higher inflation. How much of gold is a hedge against weaker dollar, lower rates, and coming inflation eventually if we ever get it . I would downplay inflation. We are just not there yet. We dont see any inflationary impulses. Haven, alays a safe lot uncertainty. It is more of those factors. If you look at breakevens, they are about back to where they were in march. The other thing i would also note, it used to be you had an opportunity cost, giving up yield on a treasury or what have you to hold gold. But with negative rates, you are almost being paid to hold gold. Romaine a lot of allure. Caroline is still in digital gold. I think taylor has been investing in podcaster. This stimulus package, we are waiting to get word later this hour about whether this bill republicans are working on does advance. The basic details so far, it will basically be an extension of the stimulus out there but not necessarily to the fullest. If it gets done, do you think that will be enough to be that bridge from where we are now to the other side . Or do we need to see a little bit more on the fiscal front to get us through this . That is a great question. If you ask me a month ago, i might posit an optimistic may be. Given how bad we bungled this crisis, i think we need much more. Going from 600 a week down to perhaps 200. That is a lot of disposable income that has basically been cut. Tens of millions of people out of a job. My gut feeling is that more needs to be done. Politics come into play, obviously. Congress goes on recess in august, the election comes up in november. So this may be the last package we see before the election. We may be inimid, for more serious headwinds caroline i am interested the adage goes that the dollar goes down, emerging markets benefit. Im interested in how much the brazilian real is up on the day. That is a country that has also been not handling covid well. I am interested whether dollar weakness will always be emerging markets again, or if there is the use with continuing to unravel . Trs page, goyour w to the year to date, and you will see the differentiation. Resilient, brazilian real, turkish lira, they are up there. Some markets are better than others. As this rally goes on and on, i would think investors get more discerning and not just going for high liquidity big place. They have to be very careful going forward. The u. S. Has been part of that Global Growth story. Yes, we are underperforming, but the world needs the u. S. Growing and close to potential to get out of this global rout. That wessing my fingers can get these numbers down. Romaine i think we are all crossing our fingers. Win thin, Brown Brothers harriman global head of currency strategy. A programming note. You can tune in to bloomberg special coverage of the fed decides on wednesday at 2 00 p. M. New york time. Coming up on this program, antitrust scrutiny is not stopping big tech from buying up rivals. The surge in acquisitions this year. That is coming up shortly. This is bloomberg. Romaine you are taking a look at the senate floor in washington, debating what could be the next round of fiscal stimulus. A lot of folks are dependent on the provisions set to expire in the current stimulus. We will get you more on that this hour. It is 97 degrees down there. The biggest u. S. Technology companies. Amazon, alphabet, facebook, microsoft. The number of acquisitions by the five largest out there came ofat half the pace in june 2017. To help us understand why there are so many deals taking place, we want to bring in antitrust reporter david mclaughlin. Thank you for being here. Can you give us a general sense of whether we should be surprised by these numbers . I believe the number of announced deals of these five names, 27 in the first half of this year, up about 30 yearoveryear. David we looked at data through the first half of the year and it shows that the companies are definitely not slowing down there buying. I think it is surprising because these companies, may be with the exception of microsoft qamar under really intense scrutiny of microsoft, are under really intense group. Four of the ceos will be testifying on capitol hill as part of a house investigation that has been going on for a year. Later this summer, we could have a Justice Department lawsuit against google. They have been much more aggressive, but they are looking into apple and amazon. It is surprising because, despite all of that scrutiny, they are just buying away. That has been one of the concerns about these companies. Caroline buying away, but we have not had such a pinup deal such as facebook eyeing whatsapp yet. Are these smaller deals . Ared most of these deals smaller. They are deals that the values have not really been disclosed to investors. In some cases, it is hard to know exactly how much money they are spending. You are right, these are not like the headline grabbing deals. But they are still, for some people, these deals are still becauselly concerning there has been a lot of worry that the Big Companies have been able to buy small startups that represent future competition. Some economists, lawyers, they say, have been able to use these deals to stop competition before it becomes serious. Taylor i think what is so interesting i just spent six months in San Francisco and no one said this explicitly but big tech was going to do big deals because they dont care about the regulators. To the regulators not care they are making these acquisitions and does big tech not care what regulators think about these deals . Good point. Is a i think big tech, probably from their point of view, there might not be much of a reason to stop doing deals. Essentially none of their deals ever have been stopped or challenged in a significant way. The other side of this, despite all the criticism, the scrutiny, eu Justice Department and have not tried to stop any of their deals. There is plenty of criticism in the u. S. In the eu, regulators need to do more to challenge these deals. We are seeing currently an interesting move from facebook. The battle goes on not only of the u. S. But also across the borders. On a programming note, chief executives at facebook, alphabet, amazon, and apple are set to testify at a rescheduled hearing before the house. Live coverage on wednesday on thursday at on wednesday at noon eastern time. More on thursday, because that is basically when they are all going to be giving us their earnings. Facebook postpones the Earnings Release because zuckerberg will be giving evidence. Romaine when you get into those earnings on thursday, and a lot of secondtier tech empties reporting that day. When you have this kind of run up in shares and forward valuation, you have to wonder if they will back that up taylor one thing we heard from sherry paul is that it is different from 19992000 because you dont have these companies that dont really have profitability, that are not sure what the these are companies with real shares growth, real earnings growth. We will stay with that as we continue. This is bloomberg. Leadere Senate MajorityMitch Mcconnell is expected this hour to release a pandemic relief proposal. It will aim to expand Supplemental Benefits supplemental Unemployment Benefits, a new round of stimulus checks, and funding for schools if they reopen. Something to finally be debating. A faroff number the 3. 53. 5 met trillion or so proposed by the house. Senate majority leader Mitch Mcconnell left the floor a moment ago. He basically came out and made an opening bid. He is talking about cutting supplemental Unemployment Insurance benefits from 600 to 200 per week. There is talk of another round of direct payments of 1200 to consumers. Billion to schools and universities. He is sort of framing this as kids, jobs, and health care. One foot in the pandemic, one foot in the recovery. Basically the opening bid. Treasury secretary Steven Mnuchin and nancy pelosi of the house will meet at 6 00 p. M. To hash out the democrats approach on this. Romaine it is interesting that they wait this long. The last 600 unemployment checks have already gone out and if they dont do something by the end of the week, a lot of folks could have a gap before they get their next check. The timetable on this seems very tight. Of hurdlese a number to clear. Not the least of which is selling this with the republican party. Senator ted cruz told reporters that there will be a lot of opposition from Senate Republicans, who dont want to see the Government Spending more money. Senator mcconnell and the republicans, they need the democrats to get this over the finish line. Agreement,come to an we dont know, but it is clear there will be fire coming from all quarters. Taylor one of the real hangups has been how much the extra Unemployment Insurance has disincentivize workers to come back to work. A study from yale shows that 600 per week does not make americans work last. Anecdotally, state and local governments are saying their Small Businesses are having a hard time bringing workers back to work. What are you hearing about the debate within 200 per week and 600 per week and if that is truly the amount that will get americans to go back to work . Of debate on lot this. Saying they cant come back because they are making more money at home there is also concern from those workers that they dont want to get sick. They are staying at home because they are making more money, or are they wary of contracting covid19 and that is one of the reasons why they are staying home there is a lot of sort of conflicting data on that. What is clear is that democrats do not like what the republicans are proposing they do not want to see supplemental unemployment go from 200 per week to 600 per week. We will find out after the secretary of the treasury Steven Mnuchin and House Speaker nancy pelosi meet at 6 00 p. M. Tonight. Caroline we have senator schumer perhaps speaking some words of concern about the proposal from the republicans. I am intrigued about the timeline and how much the race has been really on. Nancy pelosi has been playing hardball, saying she does not want to see in the interim deal struck because it takes away from her leverage. That is definitely her position and the democrats position. There is a side deal out there to extend supplemental <