Rebound we had off of the lows and how magnificent it was. You have to put that in context with how fast we sunk into a bear market. That bear market drill down we 500, s p p p 500, that was the quickest drawdown we had on record here to see a bounce like this i guess is not completely out of the realm of expectations given how far and how quickly we fell. Taylor we were member that day clearly. It was march 23. Just at the pace and rate at which you talked about the fall and the rebound. In the middle of this, we talk about a 50 rebound. You are still giving incredible superlatives when you talk about it really has been a risk on. It is Consumer Discretionary materials, tech, they are up 60 since the lows on march. Really interesting that even though the fed has been so involved, the rate sensitive sectors have not been the all performers. Romaine i would like to get amys perspective on the rates market. Treasuries have been the lowflow shower of Financial Markets for the last few months. We have seen rates taking up the last couple of days. What do you make of the move we have been seeing in treasury . Iy it is interesting because would say in the Options Market while we do not trade rate derivatives, all of the impacts that come to goad to gold or the highyield market, feel the effects fully. I thought was interesting is yesterday after we had the move in a rates and the subsequent selloff in gold and silver, the Options Market was doing call buying on all of the precious metals. People are suggests not quite buying it yet. They are ready to reload and this is a longer story with an interim blip in it. Caroline it is one we hope you will have your view on in the future. Now, that is it for the closing bell. Would you miss is up next what did you met is up next. This is bloomberg. Caroline we have some breaking news coming from lyft. It is still a sorry tale. Secondquarter revenue, 339 million, down 61 . That is a small beat. Adjusted net loss comes in at 260 6 million. A smiley smaller lost and had been expected. Active riders down 60 . Rider falling 1. 8 . Almost double where it was this time last year. Romaine zero sells. There is still a lot of optimism. You talk about a company that is not only seen a drop in active riders, but we have also seen a lot of discounting so you wonder how that is going to factor into things with regard to their outlook as well as the regulatory issues they appear to be facing in california. Taylor that will dominate the call. The cfo saying they limited their adjusted losses. A company that is trying to hang on with uber to limit those losses and try to turn profitability. From on this, will bring in mandeep singh. Take the fundamentals aside. You think overshadowing all of this is that california ruling that went into effect last week that could limit their business if they have to convert those employees to be fulltime . Mandeep you make a great point. I think the focus on the call will be on how they are controlling the cost side of things. We know the demand slump is going to be there for a few quarters. For a company like left, which is focused on the ridesharing within the u. S. , it is all about, can they survive this time of four to six quarters . They have to suspend operations in a market like california where exposure could be around 25 of the revenue comes from that market, i think that would be a huge blow. Talkingl be a big point. I think the results are slightly better than expected. When i look at the revenue per ative rider, that is still good trend. It should it goes to show the engagement level was not as bad as everyone thought. I do see some Silver Lining in the result. I think the trend does not seem to be that bad. Caroline the cofounder and ceo saying, we are encouraged by the recovery trends and we are beginning to see rides in july up compared to april. They are starting to see the don of some hopeful signs in terms of people willing to get back in cars. So much is hinged on how the virus is hopefully dampening down around the u. S. And whether or not we see a second wave. What do you think you want to hear out of a call in terms of how they can continue to take costs out of the business . Lyft, you want to see a balance. Because this is a smaller company, do not want to see the growth going away completely. Investors losing trust in this company the important thing is diversification. Delivery,ot in full in food delivery, but they have room to expand beyond ridesharing. Maintaining that growth story as well as controlling cost. If they need both, it is a fine balancing act. I am encouraged by the prince they have given, especially the active riders down 60 . Revenue per active rider was down. They still have a high level of engagement at their rider days. Romaine that is encouraging. What about the Pricing Power . There have there has been some discounting coming out of the pandemic. Is that the type of discounting that would be sticky, that they would continue to do going into the future . Is that something they can safely retain most of the customers that maybe came in on the back of those discounts . Both i do not think uber and lyft have talked about clearing down the subsidies and discounting. The market is a lot more rational now, both on the food delivery and ridesharing side. I do think the Pricing Power is in tact. We have seen that in food delivery that these companies can raise prices marginally. There are restrictions on the restaurant side. Same thing on the ridesharing side. They are not going to raise prices given the demand right now. Romaine the outlook here and for now, it appears investors are pretty happy with what they see. Mandeep singh with Bloomberg Intelligence. Think you for jamming for jumping in as quickly as you did. I want to bring news and on cisco. Coming the fiscal number in at . 80 versus . 74. Theyre giving a one q forecast. It appears to be lighter than expected. 69 to 71 for fiscal one q. The estimate was for . 76. The revenue forecasts trailing estimates. Fiscal shares down 4. 5 . Coming up, the u. S. Is on track to lose 25 of its restaurants. Even as dining has started to pick up. We are going to discuss that with the ceo of opentable. That is coming up next. This is bloomberg. Caroline he joined carlisle three years ago and has expanded the global credit business to 50 billion. Now, the fed liquidity taking over markets. Howaid to bloomberg covid19 is preparing him to reposition his portfolio. There are two things that have happened through this time. This rapid shift in volatility in the market where you saw a drop off in demand quicker than we have seen before. Then you saw a rapid recovery in the markets because of what the fed was doing in terms of stimulus. That has traded some noise in the marketplace. We are trying to figure out what the longterm trend is. We have been doing two things. One is, as the markets recovered, we have been repositioning the portfolio. We are improving and upgrading the quality of those assets to reposition those. In the illiquid portfolios, we are repositioning our portfolios to higher assets that we think and sustain a portion of the pandemic we are in right now. Side, weivate liquid are looking for opportunities in companies that we think are leaders in the field and sector they are in that are going to survive and they are looking to make acquisitions. We are seeing situations where companies are looking to make acquisitions in their space. They want to increase their position in that market. Or they are looking to make acquisitions with respect to property equipment as they see some opportunities coming out the back end of this recession we are going into. Those are the situations we are focused on as opposed to the stress opportunities people have talked about. I want to get back into stress. You mentioned acquisition financing. That is something we have seen banks play in in a big way. To what extent when you are looking at the market more largely are you seeing banks step back from the market . The banks going into this in march and april, there was something north of 300 billion of revolving lines of credit that were drawn by corporate as a defensive mechanism to bolster low liquidity. That puts a lot of pressure on the bank Balance Sheets. Some of that has been refinanced in the marketplace. There has been north of 250 billion highyield issuance and some 17 of the revolvers that were drawn in the leverage space have been paid back by some of that. Past 10 to 15 the years have actually been exiting the market with respect to extending large amounts of credit and to leverage credit space. If you look at the trends, that has been happening since 1997 where the institutional loan market and a highyield have come out of it. The regulators have regulated a light of that excess leverage off their Balance Sheet. Today, they do not hold as much risk in credit as they did 10 or 12 years ago. That migration was already happening. You are seeing folks in the private markets have less leverage or no leverage on their structures with more Patient Capital looking to make these loans. Banks are looking to the syndicated market where they can distribute loans more broadly to people like ourselves. Haso you think this crisis made them step back in a bigger way given they had taken on such revolver capacity . I think they are not as aggressive as they were prior to the crisis. I think also if you think about what they have not started to realize yet realize in their Balance Sheet but they have permission for his the impact of the consumer side. Consumer credit, autos etc. They have broader issues to think about from an overall Balance Sheet and management perspective. When you are risk managing, you have to think about that. That is going to impact their thinking with respect to how aggressive they are going to be in extending credit. Romaine mark jenkins, head of global credit at carlyle group. Economy. N to the the covid19 induced economic downturn has affected no industry more than restaurants. One in every four u. S. Restaurants on track to go out of business permanently. That is according to a forecast by the restaurant booking service opentable. Debbie sue who just took over of chi over of that company this month joins us to talk about what she has seen in the Restaurant Industry and what is going on with her company. Great to have you on here. I want to get right down to this issue about your business, your Business Model, which is to be a conduit between diners and restaurants during a time when most about are not going out to eat and many restaurants are struggling to make ends meet. What have you seen in your data and your relationships you have with these restaurants about their longterm future . Debby thanks for having me on. We are seeing a lot of trends as restaurants are opening and then having to close as the pandemic is spiking in the region they are in. The good news is that people in the u. S. And canada are dining out again. Conducted a recent survey and 25 sent of those respondents said they are dining out at least once a week. We are seeing outdoor reservations are up 20 yearoveryear. Also, restaurants are spending a lot of time because diners care about safety. So, aching sure their limiting capacity. That they have making sure they are limiting capacity. Contactlesss like pay. That is very top of mind for restaurants and diners. The metric is grim. We are on the front lines of this. 25 or we think that one in four restaurants are not going to survive. We think that might even be conservative. Caroline we are looking at pictures of your app, how you are trying to enhance the support mechanism for these businesses by offering take away. You have helped with that pivot. I am interested by your global province because, how grim is it versus the rest of the world . The u. K. Doing a lot to try to support restaurants. In mexico and australia. How is the u. S. Faring in terms of support for restaurants versus the rest of the world . Debby you are correct that the data looks very different depending on what country you look at. We have all of this data published in our state of the industry report. We see the u. K. And germany actually looking almost flat yearoveryear, which is great to see. In the u. S. As you look at the u. S. As a whole, we are down yearoveryear. Each state and city are so different. You have pockets or regions where you are seeing almost flat yearoveryear activity and you have other much more populated cities like new york where the dining demand and reservations have tanked. It is great we are a Global Company at it helps us hedge and be in many markets at once, but we are seeing a downward trend everywhere. It is perhaps more pronounced in markets like the u. S. And mexico. Im curious with your involvement with the restaurants you work with, any lobbying going on right now that you are hoping for specifically from a stimulus package from congress . Congress has been the receptive to some of your discussions with them. Debby opentable is very supportive of the restaurants act. We will come out and say that. Any government aid we can be giving to restaurants right now is necessary. And forn this call people listening and watching, the best ways we can be supporting restaurants is dining out, whether that is going to the restaurant or ordering delivery or getting takeout. Any aid that governments can be provided is wonderful. Romaine youre taking over a job, a pretty big job at a pretty Pivotal Moment in your industry and for our economy overall. What is the growth story right now for opentable . What are you looking to do . Much our mission is very the same even during covid. Our mission is to help people experience the world through dining. Reimaginingwe are the way we think about dining or the way we dine out is evolving. Reservations are more important now than ever. Weterms of our relevance, have never been more relevant. We are looking at within restaurant tech, we know this is going to be upandcoming as the pandemic rages on. Ortactless pay or takeout online menus or ordering before you get to the restaurant or paying after your meal on your app, all of those are things that opentable is focused on and those are things we are betting on to help restaurants and diners forge through this. I was targeted with an ad earlier today from google asking me to support Small Businesses by ordering takeout through their platform. You have something in new york that is prevalent. Will we look on competition favorably. We welcome any signs or companies that are coming in and being innovative and thinking outside the box. It pushes us to be better. Taylor i want to end on a diversity note. We are in a time where we are looking to increase diversity not only on the corporate level in the boardroom. You are a ceo in the pandemic. How has it been not only coming into this new row in the middle of one of the toughest recessions we have had but also being a diverse member of the team . It has been really wonderful so far. Prior to opentable was kayaked. It has always been a company that has fostered talent, been a meritocracy and so i felt very supported throughout my career here. Howuld not be more excited opentable and are efforts and our efforts going forward. I am really excited and i tell my husband and anyone who will listen, representation matters. Im thrilled i can do my part in that. Thank you very much indeed. A quick check on the latest headlines. Cpi jumped 6 10 of 1 . The index factors out volatile costs. It is seen as a more reliable measure of price trends. The biggest bonuses on wall street may disappoint. Macro revenue will not mean record bonuses. Result is traders could end up being punched by hedge funds. A billionaire has died. Redstone was a Movie Theater operator who became a media mogul. He controlled his assets through his National Amusements ownership. One of the trustees as his whohter is his daughter pushed for the merger of viacom and cbs last year. Was 97. Edstone this is bloomberg. Caroline welcome back. We are waiting to hear from the president ial democratic president ial candidate, joe biden and his newly appointed california senator, Kamala Harris. Lets talk about the shares of an online car retailer. The ecommerce platform benefiting from the social distancing trend and internet shopping. The Company Launched its 25th spending machine. Explain, the president and chairman. Great to spend time with you today. Talk to us about this vending machine. Towed to us about the mission talk to us about the mission in changing the way people buy cars. The pandemic seems to has come seems to have committed many to your vision. Thank you for having us. We started seven years ago trying to create new way to sell cars to customers to make the experience simpler, to give customers better selection and a with bettererience prices. Youre talking about the vending machine, which has been a big part of that. Dealerships spend a lot of money to attract advertisers and investors. It has been going very well the last seven years prior to this. We have been growing at triple digit rates. Customers have responded to that offering. I think recent changes in the world have led to behavior shifts that are pushing even more customers online more quickly than we would have imagined. That is obviously a positive. Romaine the other day, the talk was about inventory issues that used car dealers and car dealers overall. What is the inventory situation for carvana . Thing that starts the inventory shortfall is new car manufacturing. New car manufacturing has been impacted by everything going on with the pandemic. That leads to excess demand for new, which flows into latemodel intocars, which flows new cars. There is a shortage of inventory. We have an offering of buying cars from customers. As we announced the other day, we bought as many cars from customers as we sold to customers. We pick up the cars and give them a check. That means we have ready access to a lot of inventory. We are in a good spot. The next part of our business is we also spent about thousand dollars in parts and labor on every car to make sure we are delivering to customers the best car they can get anyway. That is a real undertaking. That is a manufacturing process. It is operationally intensive. We believe it is the right thing to do for customers, trying to ramp up as quickly as we have been takes a little bit of time. Taylor i do hear from a lot of people that this is a structural here that is undergoing and it will be a long way before we go back to how it w