k-shape to recovery. it is absolutely true. those at the bottom are having very hard times. >> there is not clear how you get people to spend their money. >> the market is not as well prepared as it normally is for this kind of downside event. >> central banks and governments together.s >> this is a market that is thinking at some point stimulus is going to happen. >> we need support for the economy both for monetary and fiscal policy. >> this is bloomberg surveillance with tom keene, jonathan ferro and lisa abramowicz. jonathan: from new york and london for our audience worldwide, good morning. this is "bloomberg surveillance." live on bloomberg tv and radio. alongside lisa abramowicz and ferro.ne, i am jonathan counting you down to a debate in nashville, tennessee. tom: it will be exciting in nashville tonight. some real back-and-forth. some news flow. we have that old for you.

the cigarette issue here is the dynamics of the polls. i will be honest, i'm confused. i have people saying it has gone better for joh joe biden in the last 12-18 hours. others saying that. trump has done better in the days.hree or four jonathan: one thing we have not mentioned in the last 60 minutes, and i will mention it right now, tom, nashville. one of us out of the theory has actually played and entertained an audience on guitar and the microphone down in nashville. tom: let me set that up for you. [laughter] belmontthis is university, which is a christian school but has been dis- affiliated a little bit from this history points. it is a spectacular music program that the two candidates defend on.

what is important is not so much the distance to auditorium, the distance to the grand ole opry outside nashville, or even to the acclaimed bluenose café. it is two blocks from the pancake pantry. and that is all that matters. jonathan: that was the perfect what do you call it, sa gooey -[laughter] [laughter] the data command lisa, 90 minutes away. jobless claims will be a big focus. lisa: yes, but before we get to that, if you would like tom keene took him to set with a guitar to prove his experience in nashville. jonathan: i have been asking forever. lisa: on twitter, sent him a love note and maybe we can make it happen. [laughter] let's look at the data. 8:30 a.m., we will be getting jobless claims. the expectation is deceleration in the recovery.

we expect the number of total filings to come down slightly from last week but still at an incredibly high level and there which stimulus.stions about 9:00 a.m., the senate judiciary committee is voting on a timeframe for confirming amy coney barrett to the supreme court. what they are not talking about getting done before the election, or at least seems to be lacking conviction is getting a support bill through congress. 9:00 p.m., there will be a debate, the final u.s. presidential debate. and we will be talking all about tomorrow.utton jonathan: we will, and i will be using it repeatedly, i am sure. [laughter] tom, at least a mention supreme court confirmation of amy coney barrett. that is where the focus has been in the senate. you get a feeling that the blame game is starting between the

administration and speaker pelosi. tom: no question about that. we will see where the stimulus goes. wendy schiller of brown university, was absolutely brilliant yesterday when talking about how beleaguered republicans are playing to a tough primary season two years hence. there is a lot of crosscurrents away from just the simplicity of the moment. jonathan: let's put the moment into the price section of the moment. thursday morning. equity futures are down 7 on the s&p. 0.2% on the bond market. point,are down one basis 0.81%. foreign exchange, turn it all around again. dollar weakness -- euro-dollar is down 1.18. what is the story of the morning so far? a bit of risk aversion with the dollar strength, the bond market bid, and equities a little heavy down. tom: i would go i with that.

gold is also off, just under $1900. it is in the middle. maybe claims here. there is an adjustment here, either good or bad. jonathan: blackrock investment global chief investment strategist is mike pyle. fantastic to catch up with you, sir. do you trade on the debate or off the back of it? how do you go through this comment like? what is the things we have been saying throughout the election season is how stable the polls have been even in the face of historic events of 2020 the united states. as it relates to your question, yes. insofar as it is the last big event before the election, it could matter. but our basic thesis is that the stable.tinues to look

our advice to investors is to look through any volatility the recent -- generates. look to the long-term and fundamentals. on: you were weaned blanchflower economics at dartmouth college. not only what he has done but others in dartmouth. how divided is a nation now, and what does it mean for investors? mike: the nation does look divided across a couple of points. political parlays vision is at historic highs. when we talk about economics and markets, we talk a lot about the k-shaped nature of the recovery and the degree to which, even an aggregate of the economy has a much different experience for people in different parts of the economy. that is why as we look ahead, the question of fiscal stimulus,

the question of is there recovery going to become more sustained or will it be a part of the narrative as we go into 2021. lisa: people are believing in higher and longer-term yields based on the idea that we will get some stimulus bill. how high can 10-year yields rise before the fed steps in? mike: we think this is a huge issue. i would say our view on it is that perhaps -- i think we heard from governor brainerd yesterday that the fed intense to act a long -- intends to act along the entire yield curve. we see that as a sign of a long recovery. the fed will be closely watching the nominal curve and not allowing a tremendous amount of steepening. to us, the more compelling reflation dynamic is to expect to see the nominal curve stay more stable. but real rates tipped to rally. even more negative.

that has important implications to the dollar, to risk assets globally. that is a really important dynamic here. jonathan: mike, that makes it profoundly difficult for financials, and makes it even easier to stick with what is working right now. what do you say to the people talking up the rotation in the equity market in america? mike: i would say two things. we have been talking about a type of rotation in the market of growth to value and more large to small. we think the growth dynamics that are reflationary can bring about that type of rotation. in the world, we see real rates lower when we see the path of the dollar potentially lower as well. that is also a pretty attractive world for equities outside the united states. risk assets outside of the united states, including in places like emerging markets. lisa: i am looking at the low of

negative real yields for treasuries, in other words the amount of money you are losing to invest in long-term treasuries. 11 percent inrd -0. september. how low could this go? mike: i think the important point is that if you look at places that have combined a significant ongoing monetary accommodation plus fiscal policy, the place where that has manifested itself in is in real rates. in japan and other places that have brought this combination to bear. that is what we see in the pressure from those two forces coming together. and policy relief manifesting -- policy manifesting itself in markets. jonathan: mike pyle joining us from the blackrock investment institute. mike, if we have negative real rates that go even more

negative, how do you plug that in into the rest of the market? how does that shape your view over the next few years? tom: it changes everything. i thought peter was brilliant this morning from rbc capital markets, laying out the money market fund it impact. he made a huge divergence between the u.s.. it would be clobbered by negative interest rates. versus the united kingdom, that could possibly withstand it. to be clear, he predicts negative interest rates for britain. jonathan: wasn't that a description of your curve control that we just got from mike pyle, your favorite topic, tom? governor brainard has talked about it. the cleveland fed has talked about it, that they will go further out along the curb and just sit on it. tom: is it an outcome or is it a policy? i think that is a fascinating question right now. do you get yield curve control after policy or nonpolicy, order you affect yield curve control and then get the policy and get

the market reaction, modest debate. jonathan: lisa, that debate is happening right now. some people think it is already here. lisa: for example, the fed balance sheet. i always watch for it at 4:30 p.m. on thursdays. last week it rose the most since may. you can see, not necessarily coming in size to the degree of choking up all the extra treasuries, yet there still is a bid. what is the long-term implication for investors? can you be bearish on the economy and bullish on equities and on credit simply because of the amount of liquidity in these assets, because you are ed to goy getting fin into anything else? and what does that do to the economy and productivity? this is what i am struggling with right now. jonathan: lisa abramovitz. 4:30 p.m. on thursdays. [laughter] tom keene, we know what the bears do on 4:30 p.m. on thursdays.

tom: they do. [laughter] lisa: hold on a second. i represent all bears right now? [laughter] jon: i think that is what all bears do at 4:30 p.m. on a thursday. lisa: that is my life. really exciting. jonathan: it is up to 4:30 p.m. on thursdays with lisa abramowicz. [laughter] we know what lisa will be doing. looking at the fed balance sheet. coming up, robert tipp, chief investment strategist. all eyes are on the capital, washington, d.c.. this is bloomberg. ♪ bloomberg. ♪ >> with the first word news, i am ritika good step. the second and final debate is tonight in nashville, one of the final high-profile chances for president trump to change the narrative of the campaign. polls show him losing to joe biden. debate rules have changed. a candidate's microphone will be

muted at times when the other candidate is speaking. the president has complained it is unfair. he said the same thing about the topics and the moderator, nbc's kristen walker. democrats on the senate judiciary committee plan to show their unhappiness with the nominee amy coney barrett they. will boycott today's vote to advance her nomination to the full senate. republicans have a majority on the panel,'s on the move will not prevent the nomination from moving ahead. sunak has., rishi unveiled another bailout for businesses hurt by the pandemic. the latest package is aimed at bars and restaurants struggling under the lockdown. the u.k. also raised job aid, cutting employers' contributions. it was a fifth straight quarter of profits for tesla. the electric carmaker easily beat wall street estimates and the company says it is on track to deliver 500,000 cars this

year. this could add momentum for has less inclusion into the s&p 500 index. global news, 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika good to. -- iambic a group to. this is bloomberg -- i am ritika gupta. this is bloomberg. ♪ ♪

♪ that some confirmed voter registration information has been obtained by iran and separately by russia.

be used by foreign actors to attempt to communicate false information to registered voters. jonathan: that was john ratcliffe, director of national intelligence yesterday evening, going into the final debate this evening and nashville. here is the price action a couple of hours away from the opening bell. we are negative on the s&p 500, down six. on the fx market, euro-dollar is at 1.1827. risk aversion feeding into the bond market. year.on the 10 jon, what do you see on the data coming out of jobless claims? jonathan: whether we will continue to lose the momentum. we have seen it stall in jobless claims and i think there is a worry that going into the

winter, just as the case got starts to pick up in the united states of america, whether we locked down, shut down, the street movement or whatever in the united states, it could lead consumers to disengage and for companies to lose confidence. that is not what you want at this stage of the recovery. tom: no question about that. i will be looking at the revisions on claims. if you are brad paisley, the country giant, you would wonder as a student at belmont university, where he was the best guitar player on the planet, down to the pancake pantry. when of the great morning moments. kevin cirilli will be there after this discussion to get the blanket, $1.03 more than the standard fare. if these two candidates were to shake hands outside the pancake pantry, how would they both be greeted today? kevin: this is a deeply conservative state, and honestly i think it is indicative of the why leaderson

mcconnell is reluctant to pass a stimulus plan. at the center, geopolitics and some bubbling over issues carrying us into tonight's debate. first and foremost, director of national intelligence john ratcliffe hastily put together a press conference yesterday ahead of news reports that iran and russia have hacked into voter registrations. this is no doubt -- i am told by the biden campaign -- go ahead. tom: the news flow is extraordinary. as you know in the papers today, the president is upset at his attorney general, at his fbi director. is he going to translate that into a discussion of foreign policy, and frankly his success in the middle east, or is is this going to be the hunter biden debate. kevin: i think it will be a both. bit of

an opportunity for the president to discuss his success with jared kushner and their geopolitical advancements in the middle east, but i also think you will see the president try to raise new questions against joe biden as it relates to his family's relationship with the ukraine. this is a polarizing time to put it mildly, and a tale of two geopolitical narratives. sense, thisg-term is an opportunity for republicans to raise questions about the democratic party and arguably the standardbearer of , for the short term, the relationship with russia and china. for the democrats, look for joe biden to say that the trump administration has not done enough to protect the integrity of u.s. elections from foreign actors. jonathan: is easy to forget given what has happened in the last month how much of the polls have moved since the last debate. if you look at the recent polls, the quinnipiac poll has texas tied, and the president with a five-point lead a month ago.

iowa is almost a tie according to the latest monmouth university all. in september that was a six point lead for the president. what happened since then. tomhe lost ground even more so with suburban females and seniors. what can he say to those two groups of individuals in america tonight. things.hree first and foremost, the expectations are so low that he has a much lower bar to clear over nominee biden. secondly as it relates to the incredibly; incredibly close polls that you-- ,eferenced in texas and iowa senator joni ernst has a gap, it on a point to widen mark richt feel emboldened that they are on the cusp of a blue wave -- democrats feel emboldened that they are on the cusp of a blue wave. yesterday i talked with the democratic national committee

chairman. i asked him, what keeps you up night? he said, florida, wisconsin, and michiganp they remember in 2016 feeling like they were on the cusp of another victoryp when have 40 million americans that have already cast their ballots, that never happened before. so it is difficult to predict 40 million are or precisely who they have voted for. lisa: on a practical note, one of the particles being adapted tonight to protect the candidates, particularly joe biden since he has not had the virus. will masks be mandatory; precisely. kevin: masks are mandatory. rapid testing. both candidates have said that they have had regular testing and they have been the biden campaign has been putting out press releases virtually around-the-clock, as their test

results have come. the president for his part says he gets regularly tested. you remember vice presidential nominee kamala harris's two staffers had been diagnosed with covid-19. she said she was not in contact with them and has put out a statement that she has tested negative for covid-19. jonathan: just before we let you go, a final question on covid-19. the first lady, how is she doing, and will she be there this evening? kevin: first lady melania trump is said to have a lingering cough, according to a statement from her office. there has been some questions and reports recently surfaced about whether or not she will attend any political rallies. she was set to introduce president trump at a pennsylvania rally earlier this week. due to that lingering cough, her wide says, out of the

range offer cautions, she set that one out. we will see if we will see the first lady. jonathan: kevin, thank you. always great to catch up. and enjoy your pancakes. tom: pecan pancakes. lisa: that can? [laughter] jonathan: have you not heard that before? butter and syrup or just syrup, tom? tom: it depends. if you are from the northeast, just syrup. there are notable people, probably including kevin cirilli, who do all of that. jonathan: do you know what confuses me with americans, bacon. why the bacon? tom: we have bacon and we also have pigs in a blanket where you have sausage in as well. [laughter] in a full english, what are those things sitting on the edge of the plate next to the

tomatoes. jonathan: the black of the putting? tom.blood, the kind of thing you don't want to think about in the morning. [laughter] lisa: you questioned bacon, though, jon. jonathan: i still do on pancakes. [laughter] pancakes. [laughter]

jonathan: from london and new york, for our audience worldwide, good morning to you all. alongside tom keene lisa abramowicz, i am jonathan ferro. we are a few minutes away from jobless claims in north america. , in the bond market yields are lower, 0.81%. ace rights in. good morning to you. tom keene, using. tom: you don't want me to sing. jonathan: jonathan ferro sounds like he would be a sick bass player. lisa: i am thinking about it. jonathan: that would be a good band. tom: it would be come but lisa will sing, not moi. lisa: i do a pretty sick air drum rendition. [laughter]

jonathan: this conversation died. [laughter] let's get to the fx market quickly. dollar lira, a disappointment from the turkish central bank. not raising interest rates, huge disappointment from the turkish central bank. fromxpectation was 12% 12.25. they leave it unchanged. tom: this is the gamma, which you hear pros talk about. it is not which direction it is but the speed of the movement. is it idiosyncratic? i guess it is, with all the politics. lebanon announcing they are reforming their government today. wallit sobers up global street because they have seen this before. jonathan: a reminder of what can happen even if you expect the central bank to go with theory.nal we have seen this repeatedly out of turkey even when it is expected. back.ave a push

many would argue that the turkish president has been running the central bank for a while now. tom: no question about that. whether it is the family relations, whatever, clearly getting clobbered. again, it is a five, 6, 70 per dollar. now 80 lira per dollar would be as ordinary. you bring it in. you are closer to the real yield, jon. as we get closer to the week, you should bring in robert tipp. jonathan: robert unfortunately couldn't join us on friday. i said, do you want to join another show? he said -- lisa: second choice. [laughter] jonathan: he said, i don't know about that. really? [laughter] lisa: come on! bring him in! jonathan: robert tipp, your thoughts on turkey, please. robert: absolutely. we are in a world where sovereigns are getting a pass.

you have seen these huge budget deficits and debt to gdp ratios, things that would have given ratings agencies pause. so many countries have been fine with that. we have seen emerging-market currencies very strong. two permanent examples in the last handful of market days show the idiosyncratic risk is there. i don't know how many people remember when their colleagues were writing triple digit tickets on turkish t-bill yields. not that long ago, they came down from above 100% to below 100. they lost six digits on the lira which is 1.5 million. this country has seen much more rapid depreciation at times, but they have been flying in the face of market norms. they were widely expected to raise rates by a couple hundred basis points, and they did not it. they have been taken to task.

the other example i would say is the u.k.. bell on across the friday is that sovereigns will be reevaluated in terms of their governance. nudged, that is a country that has not been by any stretch reckless on the fiscal side, ratings agencies will be taking a new approach. markets today as you can see are looking for appropriate responses to the crazy world and they are not getting it on the rate side today with turkey. tom: bring it back to america. i believe that working number is a $3 trillion deficit. how idiosyncratic is america getting? robert: exactly. so these days, what it is all about, it is running a gigantic fiscal deficit and making absolutely sure that you meet the gap in earnings shortfall. and in the u.s., we have been doing that.

stimulus falls short, we will be the two countries that let's not following earlier. i think the markets are displeased with that. gap.nk there will be a we are seeing a gap in the sense that we are at record retail sales. the markets i think are shocked at how strong housing has been, how strong autos have been so fearare us is, ending that of an income drop off and a double-dip in the u.s. because results have been so strong. but i think the risk in there that as stimulus drops off, you in retail sales from the u.s. and you may see it in other countries. so we are in an ironic place where the huge fiscal is a positive for the markets, even if it is reckless. when it falls away, it could be a big disappointment. lisa: can you build on that in strategy, theding

idea that people could be disappointed with momentum in the u.s. economy? how long do we have to wait before there is more fiscal support from the government before you start getting bearish and stepping away from riskier assets? robert: i think the long-term outlook was really positive here. what is really positive here is that we have in general, sequential growth. we dropped down to low levels of production globally. we are seeing sequential growth and the bite out of corporate earnings has been much less than most would have considered by a wide margin. months,at 12-24 disappointment on corporate earnings, the odds of that are fairly low. i think you will get sequentially coverage. losse long-term, i am at a to handicap this. i don't think we will get fiscal stimulus here. it looks unlikely. you will have to wait until after the election. and maybe we are in for a choppy period.

not until you get the results of election day and the smooth transition from election day, that we could be in for some volatility before investors go is policy, wehis are going to get sequential growth anymore normal investor environment. jonathan: let's get to the market call. are you a bear at 30's at 1.60? robert: yes. i think we may have short-term weakness here. the markets are nervous. the picture is not great. , though, the inflation dynamics are very soft and central banks around the world are going to be locked down. you mentioned last time, we are up at the asis basis -- 80 basis point area at tens. that is attractive. could it go up another 20 basis points? it could. but 80 to 100 basis points on

tens is really high. i think you are just reaching into the irrational exuberance mode in terms of the fed being get to lift off and sustainably much higher fed funds rate. i think it will be stuck at a low rate. and as it becomes apparent, you will see yields stay in this zone, and 80 basis points being the top of the range for the 10's. tom: on a portfolio basis, what is the pressure to go outside full facing credit and go into high-yield?redit or robert: i think you definitely need to avoid the hotspots. spreads in many areas, whether you are looking at clo's or european peripherals have recently widened out, there are really good spreads, they are not where they were at the end year, and in many cases,

they probably should be. i think the equity markets valuations are high. their pe's are high. cash balances investors have our high. it has become apparent that you will see investors creeping out the risk spectrum, supporting high-yield and you will have strong outperformance from spread products despite the fact that we have already had a really massive recovery. which brings us to 4:30 p.m. today, which is looking at the latest reports from the fed balance sheet. i have a feeling i am not alone, i have a feeling you look at this, too, right? right. lisa: how high do you think the balance sheet could get? it rose the most since may in last week's report.

how much do you expect it to client given the expectations of the market, given where valuations are through the end of the year -- how much do you expect it to climb? robert: i think the fed is doing a good job, but they are not going anywhere near the rate of the ecb. the fed's pace of a key relation is say $1 trillion a year. they are focusing on the front end of the curve. the ecb is going at double that pace. the u.s. market is holding in pretty well given how low as a percentage of that federal issuance that tom alluded to, hell know those purchases are. i think the fed has a lot of buyde to accelerate, longer duration. if the economy slows down, i think they will keep this pace. jonathan: good to see you, robert tipp from p jim. thank you. this headline from the united kingdom.

prime minister johnson and chancellor rishi sunak will hold a news conference at 11:00 eastern. this from a white house aide to the president, the white house is optimistic on a stimulus deal. they'll go of the most frustrating stories to follow in the last couple of weeks, tom. speechless. far more important is that in 50 minutes, we will get jobless claims. that will talk about the labor economy and the nation. you hope we would get off all the silliness, where tonight they have a cogent discussion about the capitalism that is prospering in this nation, and completely separate from it, all the hardship we are seeing. could we even get two minutes of debate tonight that is actually policy-based? jon you get the look of minutes of speaking without interrupting, tom. tom: they have the mute button. they have both gone tough farro

training. nice, jon. i am glad you did that. jonathan: i am trying, tom. i don't think it went well for the president last time. not my opinion, you see it in the polls. tom: that is true. jonathan: let us see if we get a different approach this evening. coming up, and emmanuel rosner, deutsche bank economist here on bloomberg heard. on bloomberg radio and seen on #2 veep. this is bloomberg. ♪ and seen on bloomberg tv. ritika: with the first word news, i am critic of both the --perate to cap look to president trump's advisers are said to have told him trade his aggressive demeanor for a lower-key style. the president trails in the polls and the debate is one of the last high-profile chances for him to turn things around. former president obama has made his first in-person campaign

appearance for joe biden. he ripped into president trump at i an event in philadelphia. >> i get that this president wants full credit for the economy he inherited and zero blame for the dynamic he ignored. but you know what, the job does not work that way. tweeting at the things.on doesn't fix ritika: the former president will campaign for biden in florida on saturday and next week. the u.s. is bracing for a -- europe is bracing for a surge of coronavirus cases to hit hospitals. during the first wave of the pandemic, clinics came up with airbags and governments pushed manufacturers to make ventilators and facemasks. still, a shortage of doctors, nurses, and technicians is putting healthcare services to the test. global news, 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more

than 120 countries. i am rithika gupta. this is bloomberg. ♪

>> we don't think we lack for desire for our products, but we do lack for affordability.

we have to improve the affordability of our products so they are not out of reach of people, and also improve our cost of production. jonathan: elon musk there, the tesla ceo, in a better mood after decent numbers. the stock up around 5% in early trading. elsewhere in the market. we look like this. on the s&p 500, drifting around the negative territory. 42 minutes away from initial jobless claims in america we are down six points. really mild risk aversion being reflected in that stronger dollar. 1.1813.lar is at bond market yield, 81 basis points on the 10 year. tom: on autos, on tesla, if you feel it is an auto company or not a technology company. emmanuel rosner joins us from deutsche bank. he is a very --a very financial

view and acuity of numbers across the financial industry. i want to cut to the chase. it is for doing electric cars, it came in higher than it takes your gross margin on tesla up about 400 basis $.27 on the3%, dollar. is that sustainable into the future? emmanuel: good morning and thanks for having me. look, absolutely, the regulatory credit was larger than expected. may have actually been down from what it was the last couple of quarters, but certainly larger than expected. we view them as sustainable for a number of years. as you know in multiple markets there is a focus on reducing emissions. other automakers are struggling with it. the reason it is better than expected is more automakers are knocking at tesla stores and saying we need to those credits. so i would say they are good for a few years. certainly not in perpetuity.

having said that, the gross margin excluding the credits was 3.7%, two points better than what us in the street were looking for. lisa: i have to say, the business model of tesla getting its competitors to give it money so they can invest to take away their business is genius. there is a question, dan coming out with a price target of $800 tesla.ll case for your target is $500. what do you think could drive the price up in the years ahead? emmanuel: it is a timing thing. especially for us, we are thinking about a lot of positive things for tesla both in the very short, medium and longer-term. i could certainly see it going toward $800 longer-term. i think the big focus will be the u.s. election. in case of a democratic victory, and with the green new deal, i

think there's going to be much extension of the federal tax credit, which could be an even bigger boost to tesla because in the u.s. best tesla in the u.s. and in the stock as well. 2021 is a huge year. we value our $500 price target, based on 2 million vehicles sold. if you want to look into 2030, tesla is essentially talking about 3000 gigawatts hours of capacity. that basically would enable them to make 40 million vehicles. chaz level not be selling 40 million vehicles by then, they will be supplying a lot of other automakers. if you want to look ahead to 2030, there is certainly additional upside to the price target. jonathan: of this stock is up 400% this year? at least market value. the market cap is $394 billion. what do we know in october 22

that we didn't know on january 1? emmanuel: i think quite a few things. on the operational execution side, things continue to impress. every skeptic i speak to throughout the quarter points to competitive dynamics. yes, tesla was first. but now there is competition coming. european carmakers are having electric vehicles. tesla will not be a monopoly forever. will we see tesla selling every single car they make? they are actually running out of inventory. in europe you have to wait for months after you place an order today. so they are performing extremely well. what we have learned, they will aggressively cut prices in order to remain competitive, to make the car affordable and keep beating estimates on growth margins. the other thing we have learned trajectory.term

now it is clear on the back of battery day last month that it is not just about selling vehicles, it is also going to be about batteries much more. they do not need sells for 40 million vehicles, they want to unlock the other market. they confirmed yesterday that the semi is coming next year. all these opportunities a much more real now. tom: much more real right now is it has a lot of cachet. it is cool to drive a tesla. everybody else wants in. are you telling me that bmw, mercedes, they can't compete with elon musk? emmanuel: no, i am not saying this. look, electric vehicle small, theres so is definitely a lot of room for everybody to grow quite fast if you have the right technology. when you look at the competitive landscape and the threat for competition, it has been the bear case for a long time. look at what is coming out. right now in the u.s., it is all

vehicles at the high-end. g.m. just unveiled a h ummer. it is $130,000. there it he thousand dollars version will be in 2024. no one has quite figure it out the ability to give a high-performance car a reasonable enough price where while making a decent enough margin on it. if tesla is successful with the cost byo cut 50% in a few years, the lead will stay there or potentially intensify. i do believe there will be other companies successful in you /v's -- in electric vehicles, it is just that tesla has a substantial lead. jonathan: thank you. great to catch up. i can confirm a little bit of scheduling for you. tomorrow morning at 9:00 eastern, the white house, larry

kudlow, national economic will be stopping by to catch up, to talk about the fiscal package that we might or might not get. tom: jon, everybody is on board. you go through the sunday talk shows, you can hear those on bloomberg radio sunday afternoon. then you are into monday, it is a dash, everyone on board including mr. kudlow. jonathan: and reaction to the debates this evening, lisa. given where the falls have been going, it is the last big chance to make a difference. lisa: yes, although something kevin said sticks with me, 40 million people have already cast their votes. this election is already in the bag for a lot of americans. it raises the question of how much momentum president trump can get from this election should he outperform. and the bar is pretty low. jonathan: you are dead on. many people keep saying it too, 12 days until the election.

it is 12 days until the election finishes. the election started a number of weeks ago for many millions of americans. alongside lisa abramowicz and tom keene, i am jonathan ferro. coming up, geoffrey yu, back of best bank of new york mellon senior strategist joins us. so you're a small business,

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but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. >> people talk about a k-shaped recovery and that's true. those at the bottom are having a very hard time. >> it's not clear exactly how you get people to spend the money and get the economy going. >> the market isn't as well prepared as it normally is for these downside events. >> central banks and governments are in this together. there's one wallet. >> this is a market thinking at some point stimulus is going to happen. >> we need support for the economy, both for monetary and fiscal policy. announcer: this is bloomberg surveillance with tom keene, jon ferro and lisa