deaths by october. lufthansa gets a lift. the airline's biggest shareholder says he will back a 9 billion euro government bailout, giving the rescue plan a shot of momentum ahead of a current vote. and david solomon thinks stocks are getting ahead of themselves. the goldman sachs ceo says the equity rally isn't justified by fundamentals. well, good morning, everyone, this is "bloomberg surveillance." tom and francine from london and new york. we look at central banks, the markets, and we also look at a couple of these banks' stress tests, but we also have a great exclusive interview. don: let me tell you about the interview right now. there is no other story in america right now than the virus. it has taken over everything in the news cycle, even jobless claims, coming up at 8:30 today. our jason kelly has sat down his lebron james and

business partners to speak of the future that they see in entertainment and education, which is front and center for mr. james. but also his future in basketball. this is a lengthy article. you will see a special tomorrow on bloomberg businessweek. we will have highlights for you all through the morning. lebron james is something very different. for our international audience, basketball is a shockingly simple game. five players aside, there is a circle at the end 10 feet off the ground with netting, real simple, you put the ball in the basket and you go home. no one has done it like lebron james. i want to make clear, the shock of lebron james is that he is only 6'9". there are many other bigger, taller people in the sport, but no one has executed in the game like mr. james. he is called a power forward,

and that is a big deal for a little guy at 6'9". here is lebron james on his new entertainment venture, springhill. lebron: it stems from my upbringing, from akron. for us, when we talk about storytelling, we want to be able to hit home, hit a lot of homes where they feel like they can be just a part of that story, or they felt like, you know what, i can relate to that story because i am someone going through the same situation. so being authentic to what we do as far as business -- tv, if it is digital, if it is apparel, whatever the case may be, just -- in to hit home on living rooms and families and households, and we have been able to capture that because our stories are very authentic.

anduse we are here in l.a. we use a lot of facilities, that is the correlation with that. but as far as what we do, it is very organic to our upbringing. it is the platform, but when you grow up like lib ron and i did, it is the exposure. when you grow up in places like we are, no matter how talented you are, no matter how good you are at something, if you don't even know things exist, and you are not exposed to them, there is no way for you to even feel empowered because it is like i am confined to this small world. as as my platform and now company we feel like that is our duty, too, a lot of exposure -- through story -- through storytelling, through experiences, through job creation.

there are people from all over the country, all different walks of life. special: king into our conversation with lebron james, this friday at seven a clock p.m. in new york. let's get to first word news with ritika gupta. florida, andornia, texas each set records for new coronavirus cases yesterday. arizona hit a peak in hospitalizations. the new numbers reflect the virus' spread in the united states. a new model predict the death toll will hit 180,000 by october. in the u.k., chancellor of the exchequer is under pressure to open the checkbook. british princes are urging the government to wrap up public --nding to -- british business rate relief and tax deferrals. -- economy has suffered a

the pentagon has unveiled 20 chinese companies that they say are owned or controlled by the military, among them huawei and hikvision. it is largely symbolic since it does not give president trump any new authority. he already has the ability to impose financial sanctions against those chinese companies. congress is in a stalemate over police reform. democrats have blocked senate debate over a republican plan they call inadequate. republicans are refusing to budge from their proposal. the house is likely to block the democratic plan. among other things, it would make it easier to sue or criminally charge police officers. white house says it would veto that measure if it passes. global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in i amthan 120 countries, ritika gupta. this is bloomberg. francine? tom?

francine: -- tom: thank you so much. equities, bonds, currencies, commodities. i want to emphasize it is a nuanced market around the trials and trip of this pandemic. i cannot emphasize enough to the international audience how the virus has become front and center again in the zeitgeist of economics, finance, and investment in america. steven riley of imperial college joins us here in a bit. what i want to focus on his bonds. -- dollar futures strong. gives way lower, the 10 year, and even so slightly the two-year yield as well. that with the curve flattening. francine? francine: i am looking at a similar data check. i would point to gold because it has been quite significant. i will put gold in my next data check, but it is inching toward 1800. if you look at wti -- this is

american oil, falling below $38 a barrel. u.s. equities are down, but stocks are inventing as investors are trying to figure out whether this resurgence in the coronavirus infections will cause an appetite for riskier assets. joining us is andrew sheets, morgan stanley strategist. thank you so much for joining us. how do you view this resurgence in certain states in america but also elsewhere in the world? --rew: francine: i don't think we can hear andrew sheets. the pleasure of lockdown sometimes is technical difficulty is that we say. we have not had too many and our team has been doing a great job, but sometimes it does happen. what i would look at also today in terms of corporate use is

lufthansa. the biggest shareholder finally came on board, saying he would support the bailout. tom: there is no question the airlines are really front and center. i go back to qantas a couple weeks ago. folks, international air travel is going to be a struggle, and just in the last 24 hours, what we have seen in the bounce of the virus in international flights, what will the united states do transatlantic, and of course transpacific as well? we have got much, much more for you. i do want to point out our great excitement over our interview with lebron james and bloomberg businessweek. we will give you highlights of mr. james and what he cares about, which is education. what he cares about is the future of his business enterprises. stay with us. this is bloomberg. ♪

>> lebron james and never carter are boyhood friends turned business partners. at the ground under their project has shifted, with the pandemic putting the nba season on hold and protests forcing america to confront issues of racial injustice. i spoke with lebron james and never carter in february, and in june i connected with them again -- and maverick carter in february come and in june i connected with them again. nest for a special bloomberg businessweek, they special conversation with lebron james and maverick carter. on bloomberg television. dani: let's get the deck rick tikka --

ritika: let's get the blueb bloomberg business flash. lebron james and maverick carter have launched spring hill company with a $100 million investments. they spoke to bloomberg businessweek about the company and a number of other issues, one of them the restart of the nba season. forward tom looking the season getting restarted, getting back into a leaker uniform, continuing to push the envelope not only on the court but off the court. like i have been telling a lot of my colleagues and my friends, i will not stop until i see real change for us in the black community both on and off the floor. ritika: you can watch all of the bloomberg businessweek conversation with ron james and maverick carter at seven a clock p.m. new york time -- with lebron james and maverick carter at 7:00 p.m. new york time on friday. the german airlines biggest

investor says he will vote in favor of the $10 billion plan for lufthansa. it comes at the lufthansa special shareholder meeting today. the parent of the chuck e. cheese restaurant change -- restaurant chain has filed for bankruptcy. it was acquired by apollo global management in a buyout. there are more than 600 chuck e. cheese outlets. that is the bloomberg business flash tom? francine? francine: thank you so much. coming up, we talk more about the markets with the chief executive equity strategist. that is at 9:00 a.m. in new york and 2:00 p.m. in london. this is bloomberg. ♪

francine: this is "bloomberg surveillance." tom, we are talking about the economy and the markets. let's get to andrew sheets, morgan stanley chief of cross asset strategist. at the forecast by the a both being downgraded, almost every -- by the imf being downgraded almost every couple weeks, how difficult is it, given the number of infections rising? andrew: i certainly think that this rise in u.s. infections is a serious risk. the u.s. is clearly still in its

first wave of infections and trailing a lot of other developed economies in dealing with the disease, but i also think it is important to step back and realize that i think a lot of what we are seeing in this recession and this cycle is also actually following some quite surprisingly normal patterns that a lot of the developments we saw prior to the recession were very consistent with other late cycle prerecession dynamics like we consumer confidence for the yield curve, the way the markets bottom in march relative washe lows in april expected. economists think the global economy will recover and recover faster than the gse, even with some of these rising infection risks in the u.s. a near-term risks, but i don't think it disrupts the longer-term 12 month story. francine: where do you see the biggest value in markets right now?

andrew: i think that where the markets have been i think quite peculiar is that we have seen a strong bounceback in prices, chai think creates a narrative that markets are pricing in a v-shaped recession or that markets have run ahead of the fundamentals. when you look at what people have been by an, they tended to be buying things that are more defensive, more economically insensitive, and which doesn't suggest that same type of confidence in their recovery. i think where the value exists now is in many places that are usually early cycle winners -- the dollar weakening, u.s. yields rising, the yield curve steepening, and the smaller more cyclical u.s. stocks that usually start to outperform across the trough and growth come and we think they can do that again. tom: andrew sheets, good morning from new york. i want to go to your map abilities and talk about the

asmmetric bet that is known yield curve control. it is widely presumed that chairman powell will place in yield curve control because of fear that interest rates are rising. this morning we see again grinding lower rates and curve flattening. is it going to go the other way, where yield curve control really means trying to control disinflation and deflationary tendencies? andrew: so this is a reason why at morgan stanley we don't think that the fed pursues yield curve control, at least to the extent that the market expects. i think there are a couple of reasons for this. the first is i don't think you can look at the record of yield curve control -- for example, in japan -- and say it has been a particularly effective policy. relative to other types of things that the fed could do in terms of forward guidance or more quantitative easing. the track record of yield curve control is unclear. i also think that there is a

nomenclature issue here, where one powell has been talking about yield curve control, he has been talking about limiting interest rates up over the next three years of maturity in the u.s. i think what investors are thinking about, they will get something much more like you got after world war ii, in the late 1940's, where the fed cap to the curve. that has not been what the fed has been discussing. if the fed locks only the short-end rates, you could still see the longer end rates rise and the yield curve steepen if the market interprets that as more accommodation to the economy, which will lead to better growth later on. tom: you are hugely valued to us because of your london abode. gage for us right now the shock of negative interest rates in the united kingdom and indeed in america. i am going to go to your good competitor, andrew sheets, from

j.p. morgan, who talked about a trajectory down to the 10-year, at the 0% level. are we worried about yield curve control come about negative interest rates, when the answer is yields are grinding down, down, down? andrew: one reason we think yields will rise in both the we. and in the u.k. is that don't think that you will see a negative rate policy pursued. again, i think part of the reason is the track record of negative rates is going to be questionable in terms of the stimulus that it implies. it also creates specific stresses on the banking system, which we think would be counterproductive in the u.s. and the u.k. we do think the bank of england could pursue some longer-term lending to banks at a negative rate, but we will not take the front end rate negative and we don't think the fed will pursue that policy either. disconnects there a

between stocks around the world and fundamentals? that in all, i think broad sense, i would actually think itven though thoug i is tempting to say yes, given the strong bounceback and the economy being still very weak. i think it is normal for the stock market to leave the economy and by quite a bit. i think the way the stock market has been rallying back has actually been a quite skeptical rally, insomuch as it is being led by the larger cap, higher quality, more defensive shares rather than the smaller, more cyclical things that you would think people would buy if they really believed in the long-term recovery. so i think that disconnect is less severe than it appears on the surface. and i think that might even be more true of the credit markets, where we think that the risk reward and credit remains better than on the equities side, and

where it is another asset class that continues to do well -- that tends to do well coming out of recessions, and where there is just extraordinary bank support. policy, central bank policy does a lot. what it doesn't do is actually fix the virus. i don't know how long it takes for animal spirits to come back. monetary policy can help with supply chains, and that is what randy pozner -- that is the point randy made earlier. >> i think central banks and government see is doing -- government policy is doing all it can, intervening far more than it was doing, but it cannot fix the crisis. it is trying to bridge the crisis until conditions normalize, until there is a vaccine, until there is better remediation of measures.

we had morgan stanley are forecasting developed market growth to get back to where it was prior to this recession by the end of next year. so a full 18 months before activity is back to normal. and i think in our conversations with investors and relative to expectations, that is a very optimistic forecast. i do think level setting is important here, that again, expectations that the economy might not be back to -- would only be back to fully normal in 18 months' time -- for a lot of optimistic,t is an better-than-expected outcome. one of the reasons we are more constructive on economic growth globally is we think the bar currently is still really low, making it easier to be exceeded. tom: andrew sheets, timely. thank you so much, with morgan stanley this money.

mr. wilson dropping by bloomberg later this morning for a new york re-think as well. the data this morning is extraordinary, no question about it. the virus has a major effect on markets, and you can see it dampening in the yield curve. for a cup of coffee, two-year states, the united .1798. jason kelly has an exceptionally interesting interview with mr. james and his colleague, everett carter. we will play some of those -- maverick carter. we will play some of those highlights this morning. this is bloomberg. ♪

hi, everyone, this is "bloomberg surveillance." black lives matter has become the biggest social movement this year with thousands marching in

cities across the u.s. and the world demanding reform. in star lebron james has been a vocal supporter of the event and shares his thoughts an exclusive interview with jason kelly. to say i wasnt anticipating it, i want to say we have always and in this position. we have always had to plan for this moment. it is something i have always had a passion about. having people understand however america and the powers and the creativity in the language and everything and the struggle that we've had so long. we have been through a lot this year. you look at the death of kobe bryant that we had to deal with. with vanessa and the

two dollars here, we have dealt with that as an organization in the city of los angeles. that was a tragic price. you come when the playoffs are almost round the corner and it stops because of a world pandemic and covid-19. we all just had to be at bay and wait around and see what was going on and see what was understood -- what was happening, but understanding the health of every individual is more important at that time than worrying about chasing a bring or a championship because there were lives at risk and no one had an answer to it. then bring us up to speed to the george floyd killing and then seeing that video and seeing how many people were hurt, not only in minnesota, minneapolis, but all over the world -- especially in the black community. because we have seen this over and over and over about police brutality and the things that go on in the inner city when being

racially profiled as an african-american black man or as a black woman. it has been a lot going on in 2020. we are still trying to make the most of it and continue to be powerful and to be heard and using the opportunity for the better of change at the end of the day. i think it is a special moment in the sense that you can be heard. haveism and activists always been around, but people had a closed year and a closed mind and did not want to recognize it, did not want to hear, did not want to be knowledgeable about what they were speaking, where they were coming from, the passion they were speaking with. being heard. people can be heard. black americans, african-americans can be heard. both men and women can be heard what they're passionate about in

their calling for help, calling for we are just tired. i don't want to say activism is something now everyone is doing it, it has always been around. in the case of george floyd and so many other innocent lives being taken away, they put up a stand. now we are being heard and everyone is being heard, not only from muhammad ali was saying in so many that came before him and so many after him, but even the local people, the people in the community. those are the real ones. the people in the community living and walking the streets and being racially profiled to be judged in their cities, they are being heard right now. tom: lebron james, 2 million-dollar can -- contribution in support of that legacy of muhammad ali that was

made in recent years. lebron james is front and center in the culture of america, not only black lives matter and this summer of discontent, but also what americans care about, sport. that makes him an ample topic for jason kelly. jason kelly, you know from bloomberg businessweek and his wonderful work with bloomberg radio, but far more it is jason kelly journalist and his wonderful work over the years on reporting on discontent worldwide for bloomberg news. he joins us in celebration of this interview this morning. jason, this could not have come at a better time. in february when you began this project, you did not know of the summer heat this nation would face. frame for us what lebron james means to multicultural america right now. jason: great question and great to be with you and francine. lebron james was made for this

moment in many ways. what is interesting is when i sat down with him and maverick carter in february, there were talking about a company that there were almost reforming, they were consolidating everything that they had been doing around making content and working to basically give a voice to those whose voice had been either ignored or shoved aside. it was making movies and making shows. this is a media company. it is an apparel company. ms. called springhill. lebron and maverick are the first to say they did not anticipate exactly this moment. i don't think anybody could. and yet they did in some ways. they saw this need. i think what lebron stands for increasingly over the years is -- and he has set it and you alluded to it -- he is the ali of his generation in many ways, transcending the sport he plays.

you can see that through his instagram, through his company, and through things like this new thing he standing up called "more than about." francine: jason, good morning from london as well. is this the first of many? you could have thought seven or eight years ago it would have been pretty unlikely that they ofld have a massive warchest $100 million. does it give it hope for similar businesses? jason: i think so. that is an interesting point because i think one of the things they're trying to do with this company is create a platform for others to come behind them. if you think about the last 10 years of lebron james, you think back to the decision -- this huge controversial tv special he made where he announced he was leaving cleveland and going to miami, they burned his jersey. it was quite a moment in the history of sports and culture. but what that set out was this

moment where lebron come up with maverick carter, said, i'm going to do it my way. i'm going to own this, literally and figuratively. ofset as on this new path athlete empowerment. i don't think you see the voices across the spectrum without lebron. kelly, one more quick question. it is remarkable the similarities here to manny pacquiao in the philippines. does mr. james have any political? aspirations jason: he certainly has flirted with that. he is one of the most popular figures in the world. he is certainly popular back in ohio. he has talked to me and others about owning a team someday, but i would not rule politics out. tom: jason kelly, congratulations. we will be playing highlights of interview.

mr.nsive interview with james and mr. carter on the business enterprises and the state of the nation as we know it. extraordinary thursday, not only jobless claims at 8:30, but the new donning orders of a new and different pandemic in america. this is "bloomberg." ♪

francine: tom: good morning, everyone. mixed markets. there's no question jason kelly's interview with lebron james is a big deal at this moment for this nation. i'm going to be honest, folks, this is the interview today. if you're worried about the

pandemic, whether you are in delhi or tokyo or the united kingdom, steve riley is the definitive viral dynamics guy in the world. he is the esteemed imperial college in the united kingdom. professor, thank you so much for joining us. i want to go to the heart of the worry in america right now. the correlation of increasing future deaths down the road. are they closely linked or can you actually limit death even as cases increase? morning and thank you for having me on to talk today. at some level, they are inextricably linked. the mix of cases can change. because we are all aware of who is more at risk now, we know the

age factor, some pre-existing conditions are factor, not to mention it is understood by the vast majority of people, those cases we are saying may be more among low-risk people. there may be a slightly smaller proportion of debts on the future because it may be lower risk people getting infected. but we don't have any clear, good data. we have to assume that as cases are going up, they're going to become confirmed deaths down the road as has happened in the recent past all around the world. tom: professor riley, own the commanding heights -- illness in new york, ends up in the rural regions. in pairs, in the rural regions of france. right now the disconnect are governors and mayors with real fear in their voices and a washington that seems removed. how does washington reconnect with the mayors and the

governors to provide them assistance? in the u.s. and around the world, each population -- each community is in some sense making their own decisions. and they're not easy decisions. i think leadership in all countries is just going to make the case really clearly that you need to do the absolute most you can as a local leader to reduce transmission. you have your own economic concerns, your own -- your people have their own concerns, but against that you need to be doing everything possible. language has to be about people reducing risk as much as possible. if those places where a case is going up don't change their behavior in some way, cases will continue to go up for a long time. and that is very concerning.

francine: is it -- it is unclear when you look at the various prescriptions how one can safeguard the population. >> is all right. there is not an easy answer. there's a really clear framework we can use now. we need to have fewer contacts with other people rather than more contacts. we can't have no context, but we need for your context. when we meet people, we need them to be as safe as possible. the evidence unmasks is difficult but when you're out of the house, if you're wearing a mask, or protecting those people you are walking past a certain degree. if you have the option of working from home and you can do that effectively and safely, then you're protecting your coworkers are reducing those number of contacts.

unfortunately, it is either by governments or individuals. everyone needs to take a sequence of informed decisions to reduce the number of contacts and then make safe -- make as safe as possible those contacts that they do have. there are no easy answers that i can see beyond that. francine: will we have a vaccine soon or is the virus mutating? there are lots of very promising vaccine candidates but there is no clear timeline i'm aware of. at the moment, the mutation -- the virus changes all the time because that is what viruses do. the question is, will it change in order that can affect measures? i don't believe there is strong evidence that is occurring at the moment but i do know that modern technology lets a strike that more closely than we have

ever been able to do before. looksteve riley, we forward to speaking to you in this pandemic. professor riley is with imperial college. coming up, wonderful half-hour talking about lebron james and moving to professor riley. richard elliman comes by. he has a really important survey moving on from a survey in davos on trust and the urgency of how, the how of gaining trust in these tumultuous times. richard edelman next. this is "bloomberg." ♪

>> i have not heard a true official apology to colin kaepernick on what he was going through and what he was trying to tell the nfl and the world about why he was kneeling when he was doing that as a san francisco 49ers. i see that to still be wrong. now they are listening some, but i still think we have not heard that official apology to a man who basically sacrificed everything for the better of this world. james on the trials

and tribulations of the united states of america in this tumultuous summer and so much of that relationship between the former quarterback of the san francisco 49ers, his nfl and mr. james is about trust. there is an expert on trust. his name is richard edelman and he is deployed the resources of his public relations firm and staff of digital researchers to trying to measure, trying to gauge trust right now. richard, i've got to rip up the script. what is so important here is right now trust is shattered across all of digital europe wildcard fiasco. this is a perfect example of where you have to earn trust or think it's shattered. how do they earn back the trust in digital europe? >> look, tom, i think our study is important because it basically says that brands have

a predominant role in establishing trust for business. in fact, two thirds of consumers say they will buy or boycott a brand based on whether the brand speaks up and stands up on racism and also on protecting them from covid. and by 41, they will give more trust to a brand that does speak up. that is a complete change from before when brands were supposed to tell you about nice things and make you happy. now people want the real story. edelman does richard advise firms locked in a pass -- yes, it has changed -- what is the to do to begin to establish that kind of trust across black lives matter's? across the african-american experience in america? is, fixirst step

history. whether you are the cream of wheat or uncle ben's or whatever, you got to update on the basis of today. you can't have packaging and branding that reflects something from 1890. that is completely old stuff and not going to work. then you have to actually make sure your house is in order. you have to make certain you cetera,cks, hispanics, that reflect in numbers the proportions of the u.s. -- by the way, in europe as well. third, you have to be willing to step into the conversation, to stand up and speak up. of over the weekend for its men's brain, ran a lovely piece -- doe ran a piece over the weekend for men who were not able to celebrate father's day because they were in prison. the means by which people get put there. that is new and important because it makes the brand relevant for today.

is important but if we're going to do some meaningful changes is the only way to incentivize chief executives across the board to link their pay to actually the number of representation of diversity that they have in their staff and on their boards? >> that is an interesting idea. is at to go back -- this big incentive for brands and for companies to wake up to the reality that their products will only be bought or boycotted if in fact they do stand up and speak up. today we have a new phenomenon believe driven by brand democracy. that means people use their wallets to reflect their views. and their views -- this is especially true of millennials and women, by the way -- it is clear that they want brands to stand for them.

brands have more power than the individual and collectively people are forcing the brand to move in a direction that they believe is going to change the world. and that is a big news for business. i am rarely aard, skeptic, but the concern is that you have a nice bottle on tv or a pr exercise or you post a black square on instagram and the company does not change. to make an informed decision, how to get the data? how much transparency do companies have to show consumers about what they're doing concurrently instead of just the happy time? new thing for business. people will buy brands based on your treatment of your employees . are you protecting them with ppe in a return work situation for covid? are you setting up a new standard for how you set up your restaurants, etc., to protect

the workers? areaspect is that brands the new corporations. that is how people feel they can affect change. in the consumers pushing business to deflect this new reality. thank yourd edelman, so much and congratulations for multiyear project, the edelman trust barometer. much more coming up. extraordinary day here with the markets moving. we have claims that 8:30. i don't want to underplay that. i think jobless claims today, whichever way it goes, continuing claims will be incredibly important. i want to draw your attention to the guest that we will be speaking to today lead by jason kelly's conversation when lebron james and maverick carter, his business association. yes, it is about the business of lebron james, but far more is mr. james' comment on this most difficult summer for america. next hour,n the

maybe we are front running barons always trump on saturday morning with the stockpicking at mario gabelli. we will get an update from mario gabelli. i want to talk to him about the efficacy of share buybacks, evaluation levels. we will talk to mario gabelli about individual stocks as well. what i'm watching this morning, bonds grinding lower, curve flattening. please stay with us worldwide. this is "bloomberg." ♪

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not to control. that is the question with walls of worry, pandemic, yields grind ever lower, curves flattened, testing the patient's of the new theories of chairman powell and the fed. wind is yield curve control begin? the math is brutal. death increases, following increasing cases. moving apartment to apartment to the rigor of his i promise school for lebron james, there was one and only one thing in life that matters, education matters. good morning, everyone, "bloomberg surveillance." i am in my house in new york. was a good morning. queen victoria street in london, francine lacqua. "bloomberg surveillance." lots today on the turning of the economics, finance, investment. francine, truly the thing that has engulfed america