Airbnb confidentially filed for , the nasdaq still outperforming. The gloves now have come off in the u. S. President ial election with the Democrat National convention targeting trumps policies and rhetoric. Kamala harris reinforced this last night. We can do better and deserve so much more. We must elect a president who will bring something different, something better, and do the important work. A president who will bring all of us together. Black, white, latino, asian, indigenous, to achieve the future we collectively want. Alix for more on how this battle for the presidency could impact the economy market and by. Reet, im joined to start on politics plus economy, jobless claims with higher delinquencies with housing on the rise, how do you pair that with what we might see in november . Regardless of who is in the white house and how Congress Ends up, there has got to be more fiscal spending. We do have what i would call a fiscal cliff, which is that so far the economy is more resilient. It has kept a buoyancy in Consumer Spending even though it is off significantly, not anywhere near as bad as people thought it could be. I look at what ends up happening in the fall, whoever ends up in the white house, there is going to be massive escort policy that comes off the back of this. Harrish a potential biden administration, you see the potential for higher Capital Gains taxes, higher personal income taxes. How are wealthy investors likely to push back on some of that . Look, weve got to do this somehow. The market has to factor that in. Nobody likes higher taxes, but at the end of the day, weve got to figure out how we are going to get out of this challenge on a federal, state, and local level and taxes is going to be part of the future. The market has to factor that in, and probably already has. When you look at whoever is going to be in the white house, one, there is going to be another fiscal stimulus that comes. I would say definitely increased taxes, and that is going to be something i think the market is already contending with. Really . Im surprised because i thought that would hit tech but tech is still at record highs. Where do you think it has been realistically this time . Theres two things that are counterbalances to that. One, the fed is pushing a risk asset. If you think about the rally that has come off the bottom, at the end of the day, it is hard to fight back, hard to fight the fed. So higher taxes and more monetary stimulus is not something any of us were thinking about in january or february. You have those portions working against one another. Thats why i think right now, the fed seems to be winning, but it is hard to say that the market will undergo some reckoning at some point under a tax revenue. When you look at that reckoning, what is the downtime risk . Isyou think of the s p significantly lower if we see some of these economicspecific things coming out . It certainly could. A simulation on everything that has happened if you had some scenario that looked like the this is not2020, the outcome that would have produced. Where ifving in a time anybody says they have some crystal ball or certainty, they are being realistic. The key that we have been saying to investors, you got to be nimble. One of the things of this year, a lot of companies have taken this opportunity to refinance themselves or put more equity underneath them for whatever the outcome is. Those are healthy things. If you look at the Savings Rates on consumers, that is a really healthy thing. Even the consumer is squirreling away money because of the uncertainty. That is actually a really positive thing in my opinion day,se at the end of the whatever it looks like on the backend, people want to have resiliency and be able to continue to live their lives. Thats what were seeing in the market. And thats what were seeing in individual Consumer Behavior as well. If you are apple youre like, i will save a bunch of cash because why not . More on the fed, john, if markets dislike those comments about yield control so much, it suggests a lot of the money is now resting on the fed coming through with another does of financial repression and allowing inflation to rise, and that echoes what you are talking about. We have seen some money move out of highyield. Do we have an inherent bias to the fed . Always likes to latch onto things with a bit of certainty. Thatctions are something seem really binary, obvious, relative to the uncertainty of how the virus is going to play out or the political climate. The fed is the steadying hand. You will get comments, people will read through them because everybody is focused on the fed, there will be some noise in volatility when they come out. At the end of the day, lets be clear, chairman powell says he will be there with the firehose to ensure that theres ample liquidity and continue to read the Economic Data that he gets. He gets more of it than anybody else in the world. And the fed will react to that data as it needs to do. That is a really powerful message, and i think many investors missed that. People get hung up in the tea leaves, in the minutes a minute, and the reality is if you take a longerterm view, there are a lot of tools in the toolbox, we have seen it before. People take ak lot of comfort in that. Do you think there is going to be a great reinvention in about the role re envisioning about the role of the Federal Reserve . I think we had that last decade. Janet yellen told us all we needed to know. The lesson is that if the fed was unwilling to take prophylactic steps in order to stave off the Global Financial crisis, there were a lot of things the fed could have done that wouldve made the impact of the Global Financial crisis at the end of 2008 a lot less devastating. And so they learn from that. Very quick to pull the trigger here. In march. Is liquid there has been a lot of criticism about bailing out the banks. The reality is the banks are critical suppliers of liquidity in the market. That is what we learned 2008. I have to praise chairman powell in the fed for doing the things they need to do while this thing plays out. And it is really up to the fiscal policy to take it from there. I do want to bring us back to the election for a second because it is the biggest thing that people will be talking about one a come back from labor day. What is the biggest concern your clients have as we approach november . I think we are talking about it now, weve been encouraging all about employees to try to take a week off. It is really hard because everybody is engaged 20 47. I actually think we are in the throes of it already. How are you not focused on the election now . Listen, i tend to focus on places where theres actually remarkable consistency. Sentiment is embraced bipartisan, so i dont expect there to be a change toward global trade. Domestically, that is both a republican and democratic tenant. Reshoring of jobs, building industries. There may be some disagreement around that but they both want to see jobs. Republicans tend to be focused more on the industrial sector. Democrats tend to be more focused on sustainability. Where we can create new american jobs, highpaying american jobs to focus on Climate Change and other things like that. At the end of the day, there is an intense focus from both parties to do the things necessary to get americans back to work and that is a really positive element i think, regardless. People can focus on the differences, i think they are largely political. There are some very big social differences. But the markets themselves are looking the same no matter who is in the office. Theres going to be increased fiscal stimulus no matter where it goes. I would love to get your perspective on what is your visibility in the back half of the year . Business has been pretty good. As a function of the fact that a lot of our clients have chosen to finance, new businesses have a viable way for a lot of private companies to access markets. Is i can tell people is it an overnight sensation 25 years in the making. More biotech been ipos than any other year, and we have chosen to focus on those. It turns out, those are really as everybody be in is trying to figure out how to finance themselves. I dont see that changing. Dont see it changing whether it is republican or democrat in the white house. At the end of the day, Companies Need to make sure they have the sustainability to execute for as long as this crisis goes on and the best way to do that is get access to capital. We really appreciate your time today, good to catch up with you. Thanks so much. Puttingp, trump pressure on schools, criticizing colleges and universities for promote learning. Were going to talk to Carbon Health cofounder. And uconn football pausing activities after six positive covid cases. This is bloomberg. Trump instead of saving lives, the decision to close universities could cost lives. It is significantly savor for students to live with other young people than to spread the virus to Older Americans at home. Joining me now to discuss more is Carbon Health cofounder and medical director of carbon companya telehealth building one of the first athome coronavirus tests. Youve also been working with some schools to reopen, give me some insight as to how it is going, what is happening . Thanks for having me on. We are seeing that the real difference in whether a school can successfully reopen or not has to do with size and resources. The vast majority of schools in the country dont have adequate resources to open safely. That includes monitoring symptoms but also testing staff, and really having class sizes that are small enough that if there is an outbreak, you can contain the outbreak to a small group of people. Alix when you look at unc chapel hill that closed down after a bunch of cases, uconn also, six cases and theyre putting a hold on some sports activities, is this the right technique, this regional shutdownstart, shutdownstart . No, i think it is completely wrong and it is completely predictable as well. The sad part is that there is no Standard Approach to reopening schools and people often forget thatit is absolutely for younger people are not as affected by the virus, but there are people like staff members, professors, teachers, and cleaning staff who are actually more greatly affected by an outbreak of coronavirus. Is really focused more on student safety but we are not thinking about a holistic system that requires that the student get the education. Alix how do we fix it . You are developing a coronavirus test, there is also talk about opening up travel corridors between different states in the u. S. And certain countries in europe. All of that requiring rapid testing. Actually would not say testing in the case of schools, just because of the resources required to get it done being so great. We really need a National Effort to do adequate amounts of testing to reopen safely. I think the biggest component is education. New zealand was able to get its coronavirus case numbers down but before they had adequate testing, they were testing a lot more than the u. S. Was, but it was not like everyone was being tested. They did it before indexing was available and they did it with a National Shutdown and education around transmission that really controlled the spread. Schools,would say for there should be a National Approach to reopening as the only way to make it work. Testing for individual schools if they are smaller sized, if they have adequate resources is absolutely the right thing. Weve been doing that with Certain School systems around the country, helping to guide reopening, butfe there are intricate protocols needed, we had one school system, for example, where theres a small scale system where students and teachers are all together all day, but the outbreak occurred and a staff member that was cleaning different rooms at different times. So we have to identify where it is blind spots are before we even try to reopen. Then i guess the question becomes if it is not testing, there just doesnt seem to be the appetite for that anymore. Take a look at what is happening in spain or portugal or even france. We are not going to see a National Shutdown again. There is a more targeted will to stay home and isolate and i wonder if that is where we are headed, so then what happens . I think that there is no no one wants another shutdown, Everyone Wants their kids back in school, but the real decision we should realize we are making is, shary going to have a smoldering Virus Outbreak where just like fires, there are smokers in some areas and then it fires up in others, and we try to react to that . Four do we kind of take all the pain at once, shutdown for a certain time, typically two or three months, make sure everything is under control, and then we open in a systematic way. We really need a National Policy around School Reopening and we cant have a topdown approach where the Administration Says you have to reopen or youre not getting funding. That is the exact opposite of what schools need, schools need more funding to be able to adequately reopen and to do it safely. Otherwise, we are already seeing communities impacted by this. You mentioned uconn earlier today, unc, notre dame. There are so many colleges that are having to shut down. This isnt sustainable. Are you going to feel comfortable letting her children go to school, and the answer should be no at this stage. Alix does that mean that europe is still handling it better than the u. S. . Now with the original virus flareups in europe, that seemed to have changed but from the description you played out, it seems like youre a still firing on all cylinders. Is that true . I think europe is doing a atter job because they have much more National Approach to how they are reopening, which businesses are being opened again. Has many, many. More times the resources of europe. I have the highest confidence that the u. S. Will eventually get there once he decides to. Airportsn it comes to and airlines, we know that after 9 11, we changed the course of this country in terms of andening for terrorists terrorism, on average, worldwide accounts for about 20,000 desperate here. This can then it alone has artie curtailed 172,000 americans, close to 800,000 people worldwide. I think if the will were there, we could really change the course of this pandemic if we put our resources toward it. Frankly, there is a course forward, we just need a National Policy to get there. Alix really great to get your perspective, and you so much for that. And thank you so much for that. Here is Something Else i caught my eye, if you dont want to stream movies on the couch anymore, moviegoers can now actually go to the theater as of today. Amc will reopen 100 locations in the u. S. , but they are limited to 30 capacity. Amc did announce they were partnering with clorox. In new york, andrew cuomo said movie theaters may be the next part of the economy to reopen in the state. This is bloomberg. This is bloomberg markets. I want to continue on a theme that we have been watching, gender equality in the work. The former chief operating officer of pinterest is setting for aicon valley reckoning. When i tried to raise my voice instead of being for leadership, i was criticized for it. Conformill expected to than my male colleagues differently than my male colleagues. Alix the company says it wants to ensure that pinterest is a place where all employees feel included in supported and of course, action is much harder. We have seen it all across wall street in Silicon Valley and will break that down in next segment your we will be talking about Impact Investing with the group had of Impact Investing. We will break all of that down, particularly relevant as we head into the election season here in the u. S. In the markets, the s p cant really go anywhere, you got claims arising a little bit, but not as much as you would expect. The nasdaq still catching a bit. The dow also stronger on the day of the money keeps flowing into the bond market. But the money keeps flowing into the bond market. This is bloomberg. Live from new york, im alix steel. This is bloomberg markets. Businesses typically those in the Financial Sector can have an enormous impact on the climate movement. Financial institutions create standards for companies to identify and disclose the potential impact of their business on the environment. Wall street is submitting into the space. You have the founder of value asked watching a fun. Group tois starting a develop employee potential. ,oining us now is megan starr Carlyle Group head of Impact Investing. Been in this industry for a long time. What are you noticing and how are your Impact Investing performing and what the interest is among investors . Megan thank you for having me. I think the real story is what you see is a case for management excellence. We really saw this throughout the crisis where we had management teams focused on agility, forward thinking and health and safety. They were every able to weather the crisis well. That skill is important to think a climatehis is crisis, for example. Alix there has been a lot of focus on diversity, hiring more minorities, there has been a lot about how you treat workers. Does it translate into higher returns . Megan that is what building better businesses is about. We have done a lot of research. One of the benefits of being private is we have regular data on our Portfolio Companies from a financial perspective. We found that our companies that workers. Rse what we see is that the market is not valuing in factors that are indicative of management excellence and diversity is critical. Alix does that help you on the risk side or the return sid