>> you are seeing a lot of divergence within the market in terms of valuation. >> there is a disconnect between what is happening in public equity markets and what is happening on the ground. >> the worse the data looks, hopefully the more impetus for fiscal stimulus. , we got got less supply demand being stimulated, and that should lead to higher prices. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. it is a simulcast on bloomberg radio, bloomberg television. ferro off, somewhere lost in

tuscany. off, somewhere outside toledo. so francine lacqua joins us. that is not toledo, spain. outside toledo, ohio somewhere. i want to get to the data in a moment, with markets moving. futures -21. i would say this has really -- this is really jump circuit by the french pmi numbers. why was this a surprise? francine: i was reading the breakdown. the sharp slowdown is basically driven by services. it shows that the escape from recession won't be flailing like some economists thought. . guess it is partly seasonal i would also point to the fact that infections are rising quite significantly, especially in france, germany, and other countries. leaders are saying they don't

want to go back into lockdown, especially when you look at these pretty terrible numbers in terms of many factoring pmi, but also services pmi. it might also be difficult not to pre-impose measures if the number of people getting infected does rise. so it will be a complicated quarter going into the winter months. tom: a massive difference here is tourism. ? my it is a big deal in the united states. certainly new york city greatly deals, i get it is a big in the united states. certainly new york city greatly affected. but in europe, tourism is everything, and that has been completely disrupted. we've got a wonderful set of conversations through the morning. i want to get to the data check right now. let me do a complete data check, like bloomberg radio's karen moskow. dow futures at -160.

now on the vix, 24.14. substantial yield deterioration, in six basis days. in two we do four digits in our yield call on "surveillance." go, go gold. gold was everywhere a month ago. nce.1 an ou we had some significant dollar strength. even swiss franc with a bit of a. . bid today. . so there's a jumble, a bit of tension in the market as well. brian levitt is with invesco, their global market strategist. we are thrilled he could join us today with a more broad view

from what we have heard from discrete equity strategists. as you right into the weekend from monday morning, what are you thinking about? brian: i am thinking about everything you are talking about, which is to say a few weeks ago, everyone was focusing on this recovery in the markets, and do we move to the more cyclical, deeper value parts of the market, and should we expect a steeper yield curve and further deterioration in the dollar. it seemed up the time that investors may be getting a bit ahead of themselves. given how covid has been playing out, it came with some fits and starts, and as a result, i think getting too far ahead of playing the cyclical recovery was going to be problematic. so we are sort of back to where we were, which is to say investors are looking for growth where they can find it. low rate, low inflation, relatively weak growth environment. tom: let me ask a dumb question for the day. we spoke earlier about aggregate

demand. can equities go up if aggregate demand is not there? brian: it depends on what kind of equities. as we have seen, there are certainly parts of the market that benefit from the structural shift that has now taken place in society as a result. there's certain parts of the market that can do quite well in this environment, as we have seen. the bigger question is can the more economically sensitive parts of the market perform well , and again, over the last couple of weeks, investors seem to be positioning for that. the latest economic data suggests no, we are not going into a deep recession here, but there is some pause taking place , and it is again favoring those true growth companies. brian, what do you see changing depending on who wins the election in november in the u.s.?

will there be a huge shift in taxes if it is president biden? what does that mean for equities? brian: i think that investors overstate what the election is going to mean for markets. i think the starting point for ,ither candidate is the same which is to say it is going to be an intermittent recovery. there's massive policy support, deeper real yields, which should be supportive in the aggregate. with regards to taxes, obviously the last thing you would want to see is tighter policy during a nascent recovery. i think if biden were to be the winner on november 4 -- or november 3, the biden been assertion would probably understand that -- the biden administration would probably understand that. we saw that with the obama administration extending the bush tax cuts during a nascent recovery. i expect tighter fiscal policy

at that stage of the cycle would not be in the cards. do you worry about inflation, rampant inflation because of stimulus and central-bank action? brian: no, i think inflation would still be a high-quality problem. inflation is still a we hope so moment. had massive demand destruction. we saw what was happening to the breakevens. they were plunging in march. the dollar was strong, so policy responded accordingly, and monetary policy has been very effective. ,ou have seen the dollar weaken inflation expectations backup. all of that is, in my opinion, a very good sign. i would say over the intermediate term, you've got very high unemployment, a large output gap in the united states, so both of those together would suggest you would not be seeing inflationary pressures build. over the longer term, there's structural forces against

inflation, not the least of which is an aging population globally, so i am not in that camp. tom: which sector benefits from this persistent, almost pernicious disinflation? brian: it is a lot of what has outperformed from 2009 to this moment. if you think there's going to be inflation, then obviously that should benefit commodities, energy, financials, industrials, materials. if you think if it is more of a plotting environment, then it is the businesses that have been performing all along. those that have pricing power. technology, some of the communications services companies. tom: what is so important here is the idea of simple revenue growth. , ex-tech, where is that growth? brian: at least in the developed indices, they tend to be

more cyclical and require that type of activity. for investors investing, valuations are more attractive. you have had pressure on the dollar over the last month, which is an overstatement. you still want to look for true growth companies. you are playing a cyclical recovery that could feel good at some point over the next month, but over the longer term, i suspect we are going back into a slow growth environment globally. we are going to be in a slow growth environment globally, with inflation largely benign, and investors will have to pay up where they can find it. that is in the united states, in china, and in parts of europe. francine: what kind of shifts will we see with supply chains? how big will these shifts actually be? brian: i suspect they probably won't be as big as investors worry. at the end of the day, businesses are still going to have to consider where they can

, andst cost-effective there's only so many parts of the world that we can consider within that. i know that there is this concern, particularly as trade tensions mount, that this is all going to be disruptive and that is going to be inflationary. i think businesses, similar to as we have seen in recent years, businesses will continue to seek out parts of the world that are more cost-effective. tom: brian levitt, thank you so much. we've got a deteriorating tape, really quite something. futures, dow futures at -186, and even nasdaq down. the vix down to big figures. we heard earlier from a guest on the importance of that nominal, current yield. the 10 year yield down four .igits

francine, what do you see in the data over in london? francine: i am seeing a bit of a move in german bunds, and they seem to be tracking treasuries. but overall, we started the morning in europe with stocks fluctuating, and then we see a bit of resilience, mainly on some positive virus vaccine breakthrough, but i think the market is now worried about about brexit, worried a little ,it about the kind of job loss especially after we had that services pmi that was ugly and france. that is putting a weight to markets across the world right now. tom: i went from a six day chart here out to a 12 day intraday on gold. back on august 12, gold down to $1874 an ounce. we are not there yet, but we have a real plunging gold from august 18.

we are looking forward to the republican effort next week with rick davis of stonecourt capital partners. stay with us. this is bloomberg, a simulcast. bloomberg television and bloomberg radio. ritika: with the first word news, i'm ritika gupta. joe biden slammed president trump is a national embarrassment and vowed to end what he called the darkness. biden accepted the democratic nomination for president last night, and said in his administration, there would be immediate change. biden: under president biden, america will not turn a blind eye to russian bounties on the heads of american soldiers. nor will i put up with foreign interference in our most sacred democratic exercise, voting. ritika: bided also cited the coronavirus pandemic and said president trump has failed in his most basic duty to protect americans. president trump warns that he

will impose tariffs on u.s. companies that refused to move jobs act from overseas. at a campaign event in pennsylvania, the president said companies that do move jobs back would get tax credits. it is not clear if the white house is actually developing such a policy. house speaker nancy pelosi is getting pressure from moderate democrats in swing states. they want her to reopen stimulus talks to republicans. so-called blue dog republicans see tomorrow's vote on the postal service as an opportunity to reopen talks. there has been a sustained decline in the number of coronavirus cases in hong kong. reports suggest that hong kong may not ease any restrictions until after a mass testing next month. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i would -- i'm ritika gupta.

this is bloomberg. ♪

pres. trump: we will give tax credits to companies to bring jobs back to america, and if they don't do it, we will put tariffs on those companies and

they will have to pay us a lot of money. tom: good morning, everyone. the president. rick davis, bloomberg contributor, stonecourt capital partner. we welcome all of you. joncine lacqua in for ferro, lisa abramowicz. this is the single guy that trump/spence want to speak to. why is that? george h w bush, bob dole. now rick davis will observe trump/pentz as they move forward to the first two debt -- trump/pence as they move forward in the campaign. . what does president trump need not to do? rick: he's going to have to really try to avoid creating any kind of controversy that takes away from the message that he has. he loves controversy. he literally does it to himself half the time. you will notice the whole biden

strategy last three months has just been let trump talk. i think the managers around donald trump have got to get a hold of the narrative for this convention, and hope that they've got four calm nights where there is not a twitter storm or an out lash. tom: an impolite question, it is rude friday, are there any rick davises telling the president what to do? or is he without rick davis? rick: well, he's got a new campaign team. something dramatic happened about three weeks ago, where he took his old campaign manager brad parscale and replaced him with a rick davis. i wish i were as good as these guys, but they are much more technology focused now that i ever was as a manager. but he is a guy who knows the game. he understands politics very well. he learned it from the rough-and-tumble of new jersey, and that is a pretty good breeding ground for politics.

fixed control in this convention. the democrats have been planning their convention for months. they had a lot of pretaped video that they can use to try to control the narrative. republicans are going to throw this thing together at the last minute, so it will be interesting to see if they can have that discipline. tom: we heard this from kevin cirilli, david westin leading our coverage -- look for that monday evening -- the president is comfortable with his core constituency. how does he reach out to the ,arginal suburban republican disaffected republican, and true independents? i don't observe that right now. how does he do that? rick: his coalition in 2016 was an interesting mix because he had a republik and base that was pretty healthy in the suburbs -- a republican base that was pretty healthy in the suburbs. what he was able to do was poach

hillary clinton's base, which included white, rural, blue-collar bails. that has now booked -- blue-collar males. that has now become his base. so he is now trying to regain republican votes he has lost. it was particularly obvious in 2018, when those members went for democrats in a big way. the question is if he can't accomplish that, do we see another blue wave coming? francine: rick, good morning from london. without stretching it and making parallels with brexit, one of the conversations i was having this morning was if you look at the brexit vote, people voted for brexit because the opposition was just saying too much negative stuff about what would happen with brexit. is there a danger that the democrats are doing the same? ? is the narrative from the democrats almost two negative, and therefore people won't turn out and vote? rick: i think that is a really good observation. i was shocked, frankly, by

former president barack obama's speech. to say that our entire democracy is at risk by reelecting donald trump i think was overkill. i think it is exactly what you described. you can't attribute every bad thing that has happened in our country in the last four years to donald trump. you've got to be practical about it. i thought the tone of joe biden's speech was calm, relaxed, but also not overkill. i think that if he can maintain that kind of pace as a legitimate complaint against the trump policies, but if they go overboard and claimed that the entire democracy of our nation is at risk by one man, i thing they run the risk of turning people off. francine: is it a risk that because of the polarization right now in u.s. politics, people actually won't vote? i don't know what your expectations for voter turnout is, but could it be even worse than four years ago? rick: four years ago wasn't bad

turnout. barack obama tended to drive bigger turnouts in 2008 and 2012, but all of the indications are in the primaries that we are going to have record turnout. the midterm election i mentioned in 2018 the highest turnout in 100 years. you had to go back to teddy roosevelt to find a bigger per capita turnout. with all the polling data, they ask your intensity when they are quizzing you on your interests, and all of that is at record levels. almost everybody who says they are going to vote say that they are at a 10 on a 10 scale. so i would anticipate a huge vote. the primaries were a really good indication that even though you had covid confusing around about box and where to go to vote, and nowhere near the organization, it was still record turnouts. tom: there's that iconic, wonderful story of john mccain meeting cindy mccain, and they

both lied about their ages. john mccain said he was younger, and cindy mccain said she was younger. there was mrs. mccain at a democratic convention, supporting mr. biden, along with general powell and others. what did you think of that? rick: she's really there supporting her husband, who passed away with a 40 year relationship with joe biden. it wasn't an endorsement, per se. but when she got a call from the biden campaign to help narrate a little story about the relationship between the two of them, she jumped at it because she knew there was a special relationship there. john mccain, when he was in the navy, met joe biden as a navy liaison to the senate, and traveled all over the world. even though ultimately, as a senator they disagreed a lot on policy, they lived in an era where you could do that and still have a cocktail at night. so i think he wanted to honor we don'tage, which is

have to be strictly partisan in everything we do. there are things that are good for the country, and you put that ahead of politics. tom: i thing i hear a dog in the background. no doubt that is lincoln the dog. [laughter] rick davis, thank you so much come with stonecourt capital today. our coverage continues. david westin switches gears on monday with kevin cirilli and others. the republican convention monday night, tonight like p.m. -- monday night, 10:00 p.m. a little bit of a rick davis lift to the markets this morning. -25 on futures, now -18, so a little better. we will set you up for your weekend reading into september. matthew horn back -- matthew horn bok -- matthew hornbach, morgan stanley, as well.

this is bloomberg. ♪

tom: good morning. simulcastsurveillance on bloomberg radio and bluebird television. , lisa abramowicz, tom keene. out, ilisa abramowicz is lost track of where jonathan ferro is. somewhere on a sabbatical. we have francine lacqua with us. part of that was to save her from the tension at the lacqua house. dow futures down. your children are apoplectic about the a-level scandals of the united kingdom. this is a major deal, back-to-school, some schools are virtual, some schools are trying to go back as well. do you go into weekend with your kids going to college calm?

are about 10kids years too young to care about a-level results, but this has a huge repercussion for the government. i do not know how much time you ,ave to talk about the exams but if you cannot sit exams in person, then you have to find a grading system because of covid-19. the grading system the u.k. wanted was to get the teachers to give predicted results. the government thought that would be optimistic and so they found this bizarre algorithm that would great with a number of things the school has performed in the past and things like that. that caused outrage because a lot of students were marked down. now we have seen a reversal. the anxiousness when you speak to students because of this, but also the fact the government has lost the trust of students and

their parents means boris is probably having a bad week. rights thelegraph backbenchers are in revolt. does prime minister johnson have control of his majority party? francine: this is the money question. johnsonook at how boris has handled covid-19, the quick reversal, how we handled brexit going forward, there are questions are how much support. it was only seven months ago he won a landslide victory. it will be interesting when parliament sits in early september and august to see how much support he has from the people in the house of commons. tom: really interesting. i do not think there is an american equivalent. i think about the uproar over ,ats, or the test people take the high school test we take,

the courses we take to skip into college. the ap test, advanced placements. this is nothing compared to the uproar in united kingdom. matthew hornbach took six ap courses in high school and joins us now. matthew hornbach of morgan stanley with us as we look at oddities of the market. i just heard from jonathan ferro in the late afternoon in tuscany and he said asked matthew hornbach about fits in the real yield. tell me what you learned about the real yield this week. matthew: thanks for having me on. apo not remember how many ap courses i took in high school but i definitely took a few. yields, theyeal have probably garnered more attention than they have in the last five years.

i do think the attention was warranted, in part because we are heading into a time when the fed is set to unveil its new monetary policy strategy which should have an element focused on inflation. real yields to react to the prospect for inflation or the lack thereof. i think the market is right to focus on them. tom: this is a huge question. are you suggesting they should be of federal reserve over one year or five years that reverts back to analysis of nominal statistics and not inflation-adjusted statistics? matthew: i think it is a federal reserve that is interested in achieving its will mandate, part of which deals with getting inflation up to a level and then maintaining it at that rate of

growth. 2% is the number. they have not had a great deal of success achieving 2% inflation over any time worth writing home about. that is a challenge for them. they are going to have to face that head on. the question for markets is how committed is the fed to achieving their 2% inflation goal, and what are they willing to do to achieve it? you can be as committed as you want, but if you are not willing to do what it takes to achieve your goal, chances are you're going to have a hard time getting there. francine: good morning from london. is there a danger of treasuries being in short supply? matthew: good morning, francine. i do not think there is any issue with treasuries being in short supply. in fact, if the government in

the united states comes together on another stimulus package, there is going to be even more supply for the market to take down. having said that, the federal reserve, in its attempt to stimulate the economy, has been removing a lot of supply from the market every month, i am talking $80 billion worth of u.s. treasuries a month they are removing from the marketplace. many investors expect that to continue for the foreseeable future. supply, butnty of the fed is removing a decent amount of it. nevertheless, when we look at 2021 across not just the u.s. treasury market but global sovereign markets more broadly, we are going to have a year where the private sector will have to take down more government bonds than they have had to take down in a decade.

year going to be quite the for government bond supply. that is important. if the economic environment continues to evolve as morgan stanley's economists have been predicting, which is a v-shaped recovery, investors are going to have some interesting decisions on their hands. are they willing to take down government bonds. and decide they want to take them down at yield levels that are unprecedented. francine: what does dollar do in this environment? matthew: the dollar has been interesting this year. we had been bearish on the dollar beginning in late march through the july fomc meeting, and then when we got to the july fomc meeting and we heard chair powell discuss the outlook, he did not touch on inflation to the extent i was hoping he

would, especially seeing the fit heading into this new -- the fed heading into this new monetary policy strategy framework review. we decided to invest our clients peel back from a long portion of those dollar short positions we had been recommending. elements tohere are keep downward pressure on the u.s. dollar more medium-term. in the near-term, we need more details from the fed on the level of their commitment to achieving 2% inflation and we in termsee commitment of how they are planning to achieve the 2% inflation. how long is the fed willing to keep interest rates at the effective lower bound in order to encourage inflation to average 2%. that is important. tom: a friday question.

i go back to william gross of financialthe phrase regression, the harm in the gilt market for retirees. is this financial repression for longer? marketharm in the yield for retirees. matthew: as long as the aggregate demand is insufficient in relation to the amount of supply in order to get 2% inflation, then yes, the federal reserve will have to work overtime with its monetary policy in order to encourage 2% inflation to occur. right now, the aggregate demand in this economy is coming from the u.s. government. tom: let's go back to ra levels as -- let's go back to our a levels. is there any level in your study

where the government can successfully reflate? francine: when we look -- matthew: when we look at modern history, we do not find examples of that at this point in time. perhaps it is because governments have not been trying no. enough to reflate, but we do not see examples in modern history where it happened. that is not to say that will not change in the future. not found examples in the past. tom: matthew hornbach, thank you. that was just like doing the yield curve -- the real yield on bloomberg television. look for that from jonathan ferro when he returned sometime around thanksgiving. it was my first project about -- at bloomberg -- forget about the residual, it is about the nominal minus inflation expectations versus whatever

comes up. the nominal yield is the heart of the matter. .625 is still unimaginable in the u.s. francine: unimaginable, but just two or three years ago we were looking at a 30 year german option with a -0.49. if i had told you that 12 months ago, would you have believed it? tom: in the late marvin goodman making clear so much if you do the fancy theory about negative interest rates, you have to have the courage to go deeper in yields. certainly that courage has not been there you're right we have courage on a friday and radio and television to give you a data check. -14, the data better than it was an hour ago. dow futures at -94. dollar stronger. 93.33 on dxy sterling.

yen 105.87. breaking 1.18, 1.773. a weaker euro. stay with us on bloomberg radio worldwide and on bloomberg television. good morning. joe biden accused president trump of failing in his most basic cutie -- most basic duty to protect americans. last night joe biden accepted the democratic nomination for president and made clear what a biden administration would tackle first. vice president biden: the first step i would take would be to get control of the virus that has ruined so many lives because i understand something this president has not from the beginning. we will never get our economy back on track, we will never get our kids safely back to school, we will never have our lives back until we deal with this virus.

joe biden also said the u.s. does not need a tax code that rewards wealth more than work and said it is time for the biggest corporations to pay their fair share. mike pompeo has formally demanded the u.n. reinstate global sanctions against iran. pompeo also slammed european arrows -- european allies who oppose the move and accused them of a failure to lead and appeasing the iranian regime. president trump says this will be the most fraudulent election in history. the president told foxnews "they are trying to steal the election." he said mail-in voting will lead to widespread cheating, even though there has been no evidence of that in previous elections. former trump campaign group steve bannon is free on a $5 billion bond. -- a $5 million bond. he has pleaded not guilty to -- the former white house chief strategist defrauded hundreds of

thousands of donors. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. am ritika gupta. this is bloomberg. ♪

>> during a major crisis like this, the european system of greater social cohesion gives

better economic out from -- economic outcomes than the united states wild west capital -- wild west capitalism. phrase wild west capitalism got a lot of attention. hannah levitt of our banking team writing on wells fargo and we report that bloomberg -- that wells fargo is beginning substantial job cuts. i love the phrase within the blather, "regular job displacement activity." i have no idea what that means other than a lot of people at wells fargo will be shown the door. 226,000, 10,000 would be 4.4% jobs reduction. hannah levitt reports tens of thousands may be out the door. neverthelesss, but -- not a surprise, but the reality from wells fargo.

francine lacqua in fort lisa abramowicz and jonathan ferro on bloomberg radio and bloomberg television. we will take the wells fargo story to brooke sutherland on industrial america. my head is spinning. i do not know what to make of this. then we have john deere out with pretty good numbers, and yet you have got to believe industrial america will right size. are they going to right size? brooke: they are, and i am glad you brought that up because that is the cap yacht optimism. john deere shares up more than 3% this morning and that is driven by the improved outlook. they are looking for less sharp declines expected in the agricultural and construction segment. part of the reason they feel better about financial statements is the expanding job cuts. "brought employee separation program" however you phrase it, it is not good.

things are getting better for some of these industrial businesses. you cannot say they are trending in the right direction when so many of these sectors are coming out with job cuts and they are being labeled permanent. tom: are they rightsizing off of challenging organic revenue growth? organic revenue growth is an industrial america statistic about the axonal -- the axonal -- the actual revenue growth in the future business of the company. are they locking in a diminished organic revenue growth? brooke: yes. when i say it is improving, they are still looking for sales to decline. it is not as bad as they thought things would look in may, but they are still looking for a 10% decline in global sales of agricultural equipment, construction equipment could be down 25% globally. on the construction side that compares to make, down 20%.

this is getting better but you are still seeing declines. john deere talks about how they want to make the company leaner and more agile. that gets back to the idea of manufacturing companies see this as an opportunity to hold on to higher profit margins and keep those, even when we do start to see stronger signs of a recovery. brooke, a number of manufacturing jobs in the u.s. have been lost. how many of those lost jobs will come back once the pandemic gets better? brooke: i am skeptical all of them are going to come back. i think it is striking when you talk about this idea of re-shoring which keeps coming up , these companies are not re-shoring to hire americans, they are reassuring with the help of automation. bank of america was out with the

report talking about $1 trillion to bring back export activity from china to the u.s.. all of the participants they talked to were looking at using automation, not looking at hiring more people. when companies are talking about job cuts being permanent, talking about being more agile, they will not turn around and want to hire more people. there is a real risk these manufacturing jobs will never come back. , much of the supply chain changes means activity will come back to the u.s.? have we seen the bulk of the changes given trade wars and the pandemic, or is there more to come? brooke: i do not think we have seen a lot of it. a lot of it is still the ideas phase. the tariffs were part of it. when i talked to manufacturing companies they say the pandemic has pulled these discussions

forward. we do have some concrete advantage -- examples, stanley black & decker is talking about re-shoring. i think you will see more and more of this. i go back to it is telling a lot of the comments are coming up from the companies themselves, but from the automation companies, companies like rockwell automation, which are seeing demand for that automation equipment to make the rate possible. tom: brooke sutherland, thank you so much. greatly appreciate it on industrial america and the wells fargo story from anna levitt. moments ago carl weinberg and his team got out in front of the weekend and the reading into monday morning. they state a week of revelations coming. that is how important they look at the economic data, to see if it will be some form of recovery, some form of stability , or the challenges we saw early morning in france. week we also have

july trade data for china. i think that will be especially interesting to see how they are recovering from the pandemic and whether there is a read of cross for our countries in europe and the u.s.. a lot of focus will be on europe given that if you look at market sentiment, there has been churned to the market do to the bad economic data we saw pmi figures in france. a lot of traders thought the recovery in your would be smoother. andave a number of cases the numbers point to a not even recovery and a much more uncertain recovery. tom: the key question in all of our conversations, did you survive the surveillance? francine: it was fun? did we have a bet on who would survive it better? well caffeinated.

key to success. tom: thank you so much. rumor has it that jonathan ferro or lisa abramowicz will be back monday. no idea which one. francine lacqua, thank you so much, and i should say to anna edwards for her assistance through the week as well. it has been an extraordinary week. neverthan 1998, there has been in august like this. i'm not even sure we are ending on august yet. let me do a data check. earlier,20 something now -12. maybe that is in august churned to a 23.57 on the vicks. -- on the vix. .60 266.ar gilts 266.e 10 year yield .6 thank you to matthew hornbach from morgan stanley for giving us wisdom on the real yield. , louis dejoy, u.s.

postmaster general. the most interesting conversation as he testifies to the senate. stay with us through the day on bloomberg radio and bloomberg television. ♪

♪ from new york city for

our viewers worldwide, i am taylor riggs in for jonathan ferro. it is a friday morning and the countdown to the open starts now. a stalling recovery sending investors back into the sectors seemingly impervious to the pandemic. >> tech has been the shining star. >> redefining what is safe. >> there is still a fair amount of uncertainty. >> i think it will be a real struggle. >> labor force participation is declining. the labor market as a whole is in dire straits. >> the earliest sign of trouble you will see investors walked back into those defensive growth names. >> we are relying on one sector right now. >> we are at the top end evaluations. >> that does not affect the state of the u.s. economy. taylor: joining us is abigail doolittle. we are getting high