alix: what do you like?re very: right now we focused on two sectors in terms of what they will be telling us going forward and those are energy and banks. we are focused on what banks are saying because it is the lifeblood of the financial economy. are we going to see loans in deferral status nonperforming, and therefore we see credit, out of the economy overall? and then, from the energy perspective, we are very much focused on the high demands dynamic improving but structurally you have issues going into the election are you have clean energy policy coming to the forefront. those are two sectors we are paying a lot of attention to, but broadly speaking what we are in more favor of is the house communications where you have issuers generating tremendous free cash flow and reducing debt. they have been doing what they lovingly call the tender extender trades when they are taking out high coupon debt. it is good for the long-term balance sheet, and an you are actually seeing some of the mna they have done rea

alix: thank you so much. joining me now to discuss more is erik knutzen of neuberger cioan multi-asset class with 700 $50 billion of assets under management. good to chat with you. who is the question doing better, europe or the u.s. ? is showing that it is recovering more rapidly from the covid crisis. it had an equally severe drawdown in the second quarter gdp numbers as the united states, but now has some tailwinds in terms of aggressive monetary stimulus and evidence of agreement on further integration in terms of fiscal policy, and the recovery from and some ability of support from the south. that provides a tailwind to -- assets.sets read alix: is there more room to run in the euro? erik: there is. we think there is some more room, although at some point makersn monetary policy will start to notice the impact on the recovery. we begin to lead into european equities but focus on quality names rather than cyclical value names. our preferred way to play europe is peripheral debt versus core debt, long ital

alix: all right.reess my question is, they going to take the punch bowl away at some point when earnings can come through. i have to wonder if you have so many retail people in the stock market and there is a huge spot in the stock market that will affect consumer confidence and how much i wind up spending and debt seems to be where the circle of the fed is and they cannot get out. do you think that is a real thing? peter: yes i do and i think it is a mistake. they think of themselves as having to stimulate financial conditions in order to stimulate the real economy. i think that is kind of a trap they laid for themselves. all of these financial conditions correlate the ball. the fed has adopted a lowball target. prevents not mean they volatility as we found her on march. it just means they are suppressing it. i don't think it will work in the long room -- long run. they definitely painted themselves in that corner. alix: what you think the next actual catalyst is going to have to be? it feels like we

alix: fair.ink the rolling, truncated stimulus, like the gop are looking at, little bit now, little bit later, little bit in january, does that move the needle in terms of truly supporting the economy until we get to the vaccine? providedit could, people have reasonable confidence that what is driving it is the desire to protect people, families, households, and businesses, so when they need to that protection it will be forthcoming. problem see an inherent in a rolling program. on the other hand, if a rolling program creates great uncertainty so people say they get a little bit now, that enables me to get to mid-september, and i do not know what will happen then, that kind of uncertainty does hinder economic recovery. alix: and as we end the conversation, i am curious your take on the fed. if we do recover and we see a rise in inflation expectations, is the reaction function of the fed going to be the same as it has in the past, or is it different? michael: that is a very good question. my take

alix: can he?ow does he actually do that this week to make it a more pro-biden vote versus an anti-trump about? christopher: i don't think it will be just his speech, although will be taking -- paying attention to that. it will also be the prior speakers, shell obama, hillary clinton. will they be leading a more progressive democratic party or will they try to frame this moment in a moment where democrats need to look out -- reach out to more centrist, moderate voters? s&p used tolly, the move more in line with president trump because he was perceived as better for the market, less regulations. we have seen a shift in that. what does that mean in terms of how an investor should be looking at these elections? some sense, from an investor point of view, this has been an irrelevant election. rises in the polls, the prospect of higher taxes, capital gains should lead to market bumps. this time around, it has been fed policy, emergence from the lockdown, fiscal policy. new,ve all been expecting large fi

alix: she did. ivan: people are not shopping for apartments, but the supply is very limited in the suburbs. there are not enough homes. i think you will see some price depreciation on homes -- some price appreciation on homes. you are also seeing price appreciation on rental of home. if you have to sell, you're going to do ok. if you are looking for a home, the inventory is very limited right now. alix: that brings us to the commercial world. you are mostly in mortgage, but for the commercial land, how bad is it? ivan: let me give you a little perspective. the industry as a $14 trillion industry, and there are three asset classes doing extra nearly well. rental, as well as industrial. 60% of the asset classes are performing exceptional. clearly, the other asset classes are hit by covid or by other factors. you have hospitality suffering and retail suffering, and then you have offices in the middle. there are certain benefits on the office side. right now there is a boom in offices in the suburbs. we

this is bloomberg. ♪ alix: live from new york, i'm alix. markets."rg an ally of the light, not the joe biden hat's what said." trump.ging donald mr. biden: the american darkness for much too long. i will be an ally of the light, not the darkness. s president, the first step i will take will be to get control of the virus that's ruined so lives. i understand something this resident has been from the beginning -- will we be the will get racism from our character? i believe we're up to it. ready.ve we're it's long past time, the wealthiest people and the iggest corporations in this country, paid their fair share. we can and we will deal with climate change. only a careers. it's an -- it's not only a crisis, it's an opportunity for in clean energy. ake no mistake, united we can and we will overcome this season america.ss in alix: joining me now, kevin, chief washington correspondent. kevin, did he win over any extra voters with his speech last night? hopes so.sure and that speech was directly playing to the suburbs and the country.ers in this it's a star

alix: thank you.n the u.k., the chancellor of the exchequer is apparently putting 2 million viable jobs in peril by ending is coronavirus jobs support program too early in the number is by lisicki for public policy research. the think tank says it would be risking an unnecessary unemployment crisis. joining us now, bloomberg u.k. reporter, david goodman. we are dealing with it in the u.s., germany -- walk me through what the research report says and what really is at risk. david: yes, i think it proved popular in the u.k. and crested with stopping unemployment when the lockdown started. it had been -- is being removed will prompt job losses. -- there needs to be a restructured in the job market to reflect the reality of the current world. they are saying if you remove this in october, you will be losing 3 million jobs in total, 2 million are viable jobs that could come back. it is things like social distancing and other restrictions mean they will not so aliable in october, support has to go into marc

alix: are people going to get fired?t will be the penalty if the investigation says you did not do enough? benedikt: so far nobody has had to leave. the head of barfing is in hot in is -- the head of baf in hot water. he has made comments as the scandal unfolded. initially said they did everything right, and then he walk that back. the other person potentially in hot water is all actual, because he is ultimately responsible for -- olaf scholz, because he is ultimately responsible. aswill obviously try to put much distance between himself and the scandal, but this is more from a corporate scandal and a tech scandal and a finance scandal into a political scandal , and that is what is being debated in the next 48 hours, and what kind of lessons can we learn? does there need to be harder regulations or additional checks? those are the kind of things people will be discussing in the next 48 hours? alix: what are you hearing about possible regulations? what could be on the docket? benedikt: one of the issues with do with was i

alix: i appreciate that. let's talk more about it with michael kelly of pine ridge investments, global head of multi-assets. he has billions of dollars of assets under management. in terms of how you allocate, what do you do in terms of bonds, equities, and the best balance portfolio in light of what the fed did last week? michael: you do what we have been doing since march, recognizing that early on in a recovery, and this recovery is unusual because it is governed by health care issue, you tilt towards growth assets and away from bonds anyway. everything the fed said last week will continue. they are encouraging risk-taking, they are ofouraging you to move out defensive bonds into more offensive stocks. alix: does that mean you do tech andke buy do what with yields, how do you translate that? michael: as a matter of fed policy, even though they don't want to talk about yield curve control -- they don't want to talk about it because unlike the japanese who owns 70% of their own market and it is easy for them

alix: live from new york, i am alix steel.f ---- it was dated two day two of the democratic national convention. brandolded to joe biden's of centrist schism. they urged for a higher voter turnout to defeat president trump. >> we are going to win this battle for the soul of our nation and joe cannot do it alone. democrats must take back the senate. we will stay united from sanders and warren to mansion and warner. we will bring bold and dramatic change to our country. kevin, theng us is chief washington correspondent. the biggest take, walk me forward. kevin: first and foremost there is no other way to look at this convention as joe biden trying to make a pitch for a big ten party whether it is in colin powell, a republican who electrified the 1992, bob dole republican convention or cindy mccain, the widow of john mccain. coupled with alexandria ocasio-cortez, the freshman congresswoman who inherits the left flank of the socialist wing of the democratic party. democrats are trying to put forward a big tent strategy. however th

alix: sam, so great to catch up with you. fazeli of bloomberg intelligence, thank you very much. european markets trading on the highs of the session as we had to the close that we ha -- as we head to the close. this is bloomberg. ♪ [inaudible] ♪ [inaudible] betterome breaking the -- some breaking news for you. -- the second-largest shareholder seems to be against vetter as the chairman. they have been pushed out to accommodate new blood in the company. cerberus has been very much question.ehind that it is interesting vetter has become chairman. vetter emerged last week to become the leading candidate after supervisory board members led by one of the two government representatives on the board put him forward. it seems he did succeed despite cerberus objections. we are settling out here. it is green across your screen. ftse, allthe cac, the higher on the day. it was industrials, materials, industry that all lead the way. you can see what is playing out there. thequestion for me is dollar having a better day today? or is it a

this is bloomberg. ♪ alix: live from new york, i am alix steel. guy johnson is off. finishing up the trading day in europe not as bad as they could have been. -- stocks. lows despite weaker than expected pmi. the cac 40 is down .5%. france pmi was not great on a composite level. job loss continuing. sentiment indicator not great as well. we will talk about travel issues in europe in a second, but spain seeing more of the epicenter of the virus breakout. watching the stock market. switch up the board. the pmi did have a ripple effect within the currency market. euro-dollar down .6%. we were kissing 1.20, now we are back down to 1.17. not as bad as it could have been in the u.k., but you are having a breakdown in brexit toalks. i did want to highlight what is happening in the bond market. we talked about how much debt the government is accruing and the pressure that puts on the furlough program which should end at the end of october and you are still seeing a bit into those markets with yields down one basis points. concernslecting demand , down almost 3%. i want to di

alix: live from new york to miami alex deal, with guy johnson in london -- i am alix steel, with guy johnson in london. yields moving higher here in the u.s., a big move. guy: absolutely, definitely risk-on. equity markets in europe got going first thing this morning. as you can see, the s&p is up .4%. europe is outperforming, up 1.5%. the auto sector is doing well. travel stocks are outperforming. bonds are being sold. gold is off, a 4% moved to the downside now. it could be a bit of vaccine optimism in the markets. we will talk about the russian vaccine in a few minutes time. purring what is s this rally? we will be discussing that. king, next hour, stephen senior economic adviser to hsbc, will be joining us for the latest on what is happening with the vaccine from his perspective and also the employment story. but the biggest story is around the vaccine. that is where we should really start. alix: so let's do that, let's get the latest. the news overnight, russian president vladimir putin saying his country has registered a vaccine that will enable broad use of the shot while phas

this is bloomberg. ♪ ♪ alix: live from new york, i am alix steel.on "bloomberg markets." europe's vaccine relief could supply to 25 million doses to europe as infections flareup -- 225 million doses. more andeed to talk uncertainty and confusion. the murky economic outlook and the fed shakes up markets backing away from yield curve control. let's check in on the markets. it was more of a risk off field, -- feel. full onestocks down a percentage point. it is not that bad in the u.s. in the currency market, it has been choppy action. the dxy has bested since yesterday and it is all over the place. euro-dollar off the lows of the session. the bond market continue to get bids in the u.s. and europe. yieldsdo

alix: nice tan. guy: it was nice. sometime, cannot speak, sometimes the sun shines. alix: vacation. what is that all about? jobless claims, pandemic low. not a lot of action. deadlock in washington on stimulus. tomorrow or do the talks go next week? 4/10 of 1%.p at one point, it seemed boe was taking rates off the table. we will break down the relationship between monetary and fiscal policy. rocket ipo listing today. couldpment on a vaccine upend markets. we just had headlines from president trump which says a vaccine could come around november 3. risk, lori, all of a sudden we get a vaccine and we get a shakeout? sector,u look at tech including internet retail, performance relative to broad s&p trading in lockstep with trends in the new virus case count. as we see that level off you have started to see wobbles in the tech trade which is fighting back and maintaining dominance. rumbling has occurred. worried we might be in a situation where bad news is good news. good news on the virus front could be bad news for the market if it causes anchors to fall. moment --that be the would th

alix: but alaska?y people are like let's go from alaska to new york in the middle of a pandemic? i appreciate that. another stock we are watching is bhp. you had mixed earnings. strong iron ore demand from china that try to offset the impact of the pandemic from the world's largest minor. still dealing with the shift in the commodity market from oil and coal and into cleaner fuels. will break that down in a second. bloomberg's has seen the amin spoke with bps ceo. >> the recovery appears to be underway and appear strong in china. we will see uncertainty in the way the rest of the world recovers. our broader economic forecast is for to take about a year for the world to get back to pre-covid levels of economic activity, and two or three years to get back on the trajectory we otherwise would have been on. that is the broad economic outlook. in terms of iron ore itself, demand remain strong in china. , that appears to be holding up quite well. on the supply side, we will see more supply coming to market f

this is bloomberg. ♪ alix: live from york, i'm alix steel, -- live from new york, i'm alix steel, alongguy johnson in london. this is "bloomberg markets." scarlet fu is looking at precious metals. resuminggold prices its record rally. the price has jumped from the almost $2090. pandemic and geopolitical fears boosting demand, but investors are also seeking an alternative to bond in their portfolios. there's also demand for etf's. the biggest gold etf saw gold holdings climb for 20 straight weeks, and it may break the record set back in 2012. now let's get to barrick gold. , thereported this morning world's number two gold miner clearly benefiting from higher gold prices. revenue and profit beat analyst estimates. 20%sted eps up zero dollars -- up $0.20. barrigenerated 500 -- ck generated plenty of cash. it is returning some of that to shareholders, raising its dividend to $0.08 a share. gold production overall remains constrained. second quarter quarter production down 15%. miners will need to invest to keep production steady. the question is whether need to invest more. we saw what hap

this is bloomberg. ♪ alix: i am alix steel. this is european close on bloomberg markets.one in the room is the title of bloomberg's deep dive and what it means to be black on wall street. they spoke with several men and women who tell their own stories, and one of them is crisply, kkr's head of real estate and the americas, who says there is a lot more pressure on people of color to hit the first pitch out of the park. another company making a push for diversity is carlisle. it has achieved 100% diverse board in the u.s. buyout and its largest fund. joining us is curtis johnson, carlisle managing director, and bloomberg's sonali basak. it is great to get you here. you spoke out for the article. why now. what would be your message that would be different today than it was a year ago? curtis: thank you for having me on. the number of -- that has made its way into. [indiscernible] caryle and others can use their platform as an opportunity to expand voices against racial injustice and come out publicly on our programs to increase diversity. weali: a lot of the people spoke to

: alix:. it's good to catch up, thanks a lot. with the, we will talk ceo of an economy developing new technology to purify air. the chief executive of schip ensure will join us next. sure -- the and chief economist of schip and sure environmental will join us ♪ ♪ ♪ on theet's check in bloomberg first word news. ritika: there is a sign the u.s. labor market may be improving. applications for unemployment benefits fell more than expected last week to the lowest since the pandemic started. initial jobless claims declined isabout 1.2 million which 200,000 less than the median forecast. claims are over one million on a weekly basis on the job market is a long way to go to recover. the white house and congressional democrats are running up against a self-imposed friday deadline. they have promised to strike a deal by then on a new virus far,y package but so little they have been able to differences.mental white house chief of staff mark meadows warns that if there is no compromise in, president trum

this is bloomberg. ♪ ♪ alix: live from new york, i'm alix steel.ng down to the european close on bloomberg markets. plans toiconic stable cut over 7000 jobs as restructuring and higher food sales are not enough. and in person talks begin again between the u.k. and the european union, the same sticking points remain with now seven weeks to make a deal. plus, german cases spiked to a four-month high. controlling the virus means controlling the economy. we will check in here on the markets, the big story overall has to be that weaker dollar pushing the euro higher now, we really fix the closing that 120 level, but how much more upside is there for the euro? you have crude up

alix: turnaround wednesday. for two days we got a bigger jump in consumer prices, and i have to wonder how much that is feeding into what we are seeing across assets. s&p up 1%. we are treating again around another record. dollar a little bit weaker. it is the steeper curve that we will be looking out over the next couple of hours. how do you reposition for that, and is it a substantive change? we will be looking at what bidens pick means for d.c. -- biden's pick means for d.c. we will be speaking with congressman jim clyburn, house majority whip. he will be talking about that biden hop -- biden-harris ticket. are also speaking with the general mills ceo. we will be delving into all those angles in the next hour. we start on the market with sarah malic, cio of global equities. she oversees $1 trillion in assets. the backdrop, are we seeing real inflation and rotation in asset classes? >> we don't think it is a permanent rotation in asset classes, because cyclicals are so cheap. markets have been very optimistic

alix: can that last?ould think that at some point that is going to hurt trading confidence, and you may see less volume, or there may not be the further gains to be had. we are certainly very aware of the challenges in the global and the local macroeconomy. probably the have largest number of listed stocks in the emerging markets. we punch way above our weight, relative to the real economy. we also have a bedrock of institutional traders within south africa who -- the funds are contained in the country because of exchange control. there are also important rand hedges. more than 70% of our top 40 derived their income from outside of south africa. uniqueeatures are quite and apart from our real economy. [indiscernible] is over 250%. capitalicipation of the markets in the south african environment. me insightou give into products or new services you might be launching in the back half of the year to capture what is happening within the market to mark leila: -- in the market? newa: we just launched a segment

alix steel is in new york. take it away. alix: i love thursday. you are in london, i am in new york. we are stone throw away from a record high in the s&p. a better-than-expected initial jobless claims, but is hard to figure out if it is better or worse for the market in pushing d.c. towards a stimulus. socgen saying the equity risk and currency risk of the euro are moving in tandem. this wanted to highlight what is happening in yields. the 30-year in particular. we have a lot of issuance at 1:00 p.m. we will see how it does. coming up, we will have part of the interview with robin hayes, warning of weaker global oil demand because of jet fuel demand. and martha pollick on the college's plan this fall. let's get back to the lead story on the economic data front in the u.s.. the number of americans applying for unemployment benefits falling below one million since the pandemic began in march. we are seeing economic recovery getting some traction. joining us is michael mckee. is it good news, bad news? think it'sdon't either. it doesn't show that th

alix: thanks so much.e uncertainty of the pandemic looming over classrooms, back-to-school looks different this year. one school, avenues has campuses located in some of the world leading cities, and is looking to also expanded europe. for now, the school is looking to open this fall. we are joined by the president, jeff clark. you are also opening up a branch in east hampton, to cater to some of the wall street or's or families who have most of best to have moved -- families will have moved there during the .andemic what is on the docket? jeff: we have tried to come up with as many flexible plans as a good for faculty, family, and students, to meet their needs doing this unique time. using our online campus, to as you mentioned, opening the studio campus in the hamptons, options, to digital providing teachers actually in people's homes, we have tried to meet the needs needed right now so that our students, families, and faculty can thrive. guy:'s online education as valuable as an in-person education? can

alix: live from new york, i am alix steel with guy johnson in london. it feels like august in the u.s.. the s&p really flat. it is the cyclicals, you have energy, industrials, materials leading the way. it is monday in august. let's trade it. definitely monday. the nasdaq i was a bit surprised about. the nasdaq now down 1.4%. is why weteresting are seeing an incredibly low august volume in europe -- the volume on the ftse 100 is down the nasdaq is trading on a 100 day average basis upon the volume, but down 1.5%, which i think is interesting. the s&p is only down .5%. the u.s. markets are beginning to fade and the nasdaq seems like it is getting down through thursday lows. we are seeing pressure. i love covering the markets. europe is a snooze fest from an equity market point of view. there is nothing happening. light volumes. market trapped in a tight rein from an equity point of view curate we are going nowhere in a hurry. the energy sector is reasonably well bid but not spectacularly. the euro is back towards the middle of its risk range. brent catch

alix: a serious question here.hen sports have opened, they have put dolls in the stand, fans' faces. you can buy a seat and put your face up there. are you guys going to do stuff like that? laurie: it is slightly different for us in the sense that we are hoping we have committed in partnership with all of our other term your ship clubs -- from your ship clubs -- premier fans backwant to get into arenas as soon as is safely possible. so we have not quite gone to that degree, whereas other sports previously have had a long time, in long downtime. so that investment would probably be considered more prudent. what we have done is we have got several banners around our grounds that are both a reflection of the sport from our key sponsors and investors, and thank you to them, and him banner where we have named all of our ticketholders and members named on the banner. we have given them. a specific note of thanks to all of them. because it is a terribly testing time as a consuming fan. you want to remain connected with yo

. -- alix steel. bumpy week and yellow flashing lights when it comes to retail sales and in dust -- industrial production. you can see the market reflective of that. the s&p going nowhere and the euro-dollar able to inch closer. eight street -- straight weeks of gains. what i am looking at and what we will be talking about is the curve steepener and the rise in yields. what that means for asset classes and what it means. is it a better vaccine world or too much optimism priced in. michiganersity of consumer statement is breaking right now. let us get the details with mike mckee. little bit better news. consumer sentiment is up a little bit from last month. the preliminary michigan numbers come in at 72.8. there was an expectation that it would slip given everything that has been going on. we have seen an increase in expectations and the current level. is 80 2882.5 and that -- 82.8 and better than what was expected. level rises, and it had sharply declined last month but people are feeling better about

♪ your i am alix steel. york, i'm alixw steel.ncreasingly driven by tech, that is the real narrative. what does that tell us about belief in what is happening? s&p is up. in europe, we are not faring quite so well. london is partly the reason for that. underperformers in the insurance sector. we are continuing to see movement and bonds. it is fascinating to see what is happening. the numbers are starting to climb back higher in germany in terms of the virus story. it will be interesting to see how that manifests. how are we going to deal these issues? we will talk about the aviation sector. earlier, i talked to a ceo in new york. jetblue is looking to start transatlantic operations. next year,ng about we will see what happens. seeuld be interested to what happens on that first transit linick flight. -- transatlantic flight. the hsbc strategist is joining us now. do you stick with this equity rally? >> i think it does have legs. what does that tell us? that the rally has been so ?arrow, driven by tech if we look at the average stoc

alix steel with guy johnson in london. guy, risk on. take in favor botta the backup in yield in the u.s. has been the longest stretch of higher yield we have seen since june. guy: you wonder how far it is going to go, don't you? you we are seeing a similar -- we are seeing a similar story in germany with yields -44. 54 on the pound. we see terrible u.k. economic data. it is translating into a stoxx 600 up by one point 2%, but being outperformed by the s&p up by 1.32%. what -- we will be discussing that really bad u.k. data. we will be talking to emily dodge, the u.k. shadow 20%.ellor as gdp falls by that is the worst number for a very, very, varied longtime. what does that mean for u.k. asset? strategistnvestment is joining us now. david, the u.k. economic outlook is really bad right now. we have had a bounceback a little bit in the month data, but it makes grim readings. u.k. asset pricing enough in terms of the downside? don't think they are pricing enough bearing it was a truly terrible q2 gdp number. that was expected. at the moment

to lay out this important and difficult issue is alix steel. alix: good to be here. can really see the racial inequality play out throughout the pandemic as well. all of this was addressed by elizabeth warren in massachusetts. sen. warren: our economic system has been rigged to give bailouts to billionaires and to there in the face of everyone else. but we can build a thriving economy by investing in families and fixing what is broken. joe's plan to build back a better include -- includes making the wealthy pay their fair share, holding corporations accountable, repairing racial inequities, and fighting corruption in washington. alix: let's look deeper into that racial inequality. the fed released a copperheads of look at race and the economy, and this truly stood out. these are assets by race and ethnicity. as you can see, whites have a much higher share of that than any others, black or hispanic. real estate and corporal equities and mutual fund shares are very much owned by whites. it also means when you have a 50% rally in the s&p, it will disproportionately bene

alix: the big question i have, and this dovetails with bp -- if bp is getting rid of 40% of their hydrocarbon business, i'm wondering what kind of supply gap creates, which leads me to

we will get more details from alix steel in a few minutes. amanda. vonnie, markets across the u.s. are certainly focused on the vaccine front as well as stimulus. it seems as though optimism about reaching an agreement is playing its part in assets. we are not seeing massive momentum, but the s&p 500 tracking a fourth day of gains. it is doing the broad market better than the narrow leadership of tact. industrials leading the way and trillion potentially dollar stimulus package the u.s. dollar is weakening and gold holding above $2000 on the spot. both of those a factor of mounting debt and deficits. we are keeping our eye on disney today. that stock up 9% after earnings and streaming data. we have been talking a lot about the enthusiasm for vaccines and whether or not there will be any single silver bullet. this seems to be that may not be the case. in an exclusive interview with david westin the top infectious disease expert, anthony fauci, says while he hopes for an advocacy rate of 70% even 50% would be helpful. >> in the sense of truly putting i

alix: don't you still need $60 oil to make this work?d with the distribution policy reset is what we wanted to do is consistent with strategy and this decision was rooted in strategy. we want to become an integrated energy company. we need to invest into the transition. to do that, we want to be able to do it at a range of prices, and what we set out yesterday is a framework, a financial framework that has a balance point of $40 oil so we can do these things at $40 oil and by the way, if oil is less than $40, we will take actions to preserve that. what we've laid out is a very resilient distribution policy that enables us to invest into the transition while giving shareholders a fixed dividend and the potential for at least 60% of buybacks if there is excess cash flow. matt: that was bloomberg's alix steel speaking to bp's ceo bernard looney. is our fx and rates strategist richard jones. richard, i kid, but you got work experience in banks across continents and now you are here with us in berlin. we are seeing something that is historic.

alix: all of that leads to hash burn, etc. -- to cash burn come etc..utting some workforce. how many levers left do you have to make it through until there is a vaccine? >> we did raise over $4 billion, so we felt good about that. we are feeling comfortable in terms of wherever balance sheet is. we have no problem getting through this crisis. that being said, what will the other side of the pill look like? what is going to change in terms of the industry? you were mentioning business travel. business travel does provide a lot of revenue to some of the big chains, and certainly the front of the airplane is where those airlines are paying those big fares. what is going to happen? will people go on those business trips the way they did in the past? from our point of view, where much more leisure oriented. there is a silver lining for us because when there is a lack of demand, those people on the supply side are more interested in working with adjuster like us to fill that empty seat on a plane or empty room in a hotel. that is unfortunately a little helpfu

that was kevinsneader speaking with alix steel.ade prospects may look shaky and south korean experts for august. while the recovery seen across asia, most pmi's have wallowed in contractionary territory. in australia, the rba is expected to keep the key rate .nd main policy on focus from japan, the child -- the jobless rate is expect good to have risen to 3% as the virus curbs job offers in services. haidi: coming up, we are speaking to carrie greg who is looking beyond the august stock rally. bringing a business perspective to abe's successor. tesla nine youd as the companies split their stocks. exclusive'sl have coverage of the tech summit in hong kong. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. 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

alix steel is out for the rest the week. , the momentum keeps rolling. kailey: fresh record high for the s&p 500 yet again this morning. u.s.-china trade optimism. on the up 1/10 of 1%. the cyclicals are leading meditech is lagging. i want to point out the risk appetite. the g10 space weaker by one quarter of 1%. you're seeing yields higher across the global market. the tenure of four basis points. keeping an eye on crude, the storm in the gulf barreling toward the coast could make landfall as a category three. that has crude prices up one and a half percent. another thing i am watching as the rnc tax policy. toer this hour, we are going look at taxes and how they play into wealth inequality. we are going to do that with dorothy brown november university. first, economic data. confidence, 84.8, the market was looking for 93. ist is a week number -- that a weak number. this tell us something about the stimulus debate, the employment market in terms of the present situation. that has weakened significantly from the 94.2. the expectation number has weakened

alix seel hs t wk of. we re cunting ydown to teuropean close. we tking at tfed and t n aproach t sing policy. powell, hw de g every f >>we a s a round trip. it is the 1% outperforming up a full point. 75 10 year yeild nearing basis points out of safe haven treasuries. .2%.ollar up approach torelaxed inflations. >> we will seek to achieve inflation that averages 2% over time. will achievecy some time.r prof, what do we still need to know? >> it was powerful and important. not trying to .low the ecomony down experienceecade of unemployment. we will take more of a back seat. it even overshoot inflation? fed wills where the go. before weation down get to the 2%. is hot? that is what they aren't going to tell us. they don't want to be constrained. rt japan.ference countries acted too quickly. of gdp and is% going much higher. thatdon't want to get in situation. thatwant to go higher and means we will get to the 2% average, which might mean target.n above the 2% are you concerned valuations are getting too extended? the fednk some of it, liquidity sup

alix steel has the week off. it is friday, he will be back monday. markets, the stocks continue to rise for an incredible week we have had another one, but the dollar is down. guy: that -- kailey: 24 hours to adjust everything we have heard in the fed policy shift yesterday. stocks, record high. s&p 500 up three tents of 1%. seventh up day in a row. weakness on the nasdaq yesterday, but it too is at a record. pay attention to the vix, it is a rare records where equities rise hand-in-hand as they have for three days in a row. vix not too elevated, but something to keep an eye on. maybe some concern beneath this rally. the bond market yesterday saying a bit of buying come back, but not much for printing. 71 basis on the 10 year right now. action pivots over what is happening in the united states. we get to the michigan consumer center. a little stronger than economists seemed to have protected. 74.1, up from 72.8 last time around. 72.8 was what the economists were predicting as well. current conditions, 82.9. that is slightly ahead of expectation which

alix steel is off today. welcome to bloomberg markets. stoxx can't be stopped, it steams. >> happy monday. because a week with pressure dac -- record highs. >> may the easing of china tensions. maybe anticipating jackson hole. the result is a decisively strong s&p 500. up 7/10 of 1%. again you are seeing that tech outperformance with the nasdaq up 9/10 of 1%. we hear the majority of g10 peers down 2/10 of 1%, keeping an eye on crude. we've got not one but two storms heading toward the coast threatening half of u.s. offshore oil production. that has accrued up just a quarter of 1%. the backdrop to this is the republican national convention that kicks off today. we are going to have more on that later on today. ags investments will be joining us. i want to stick with the president and politics. we know the virus is related. yesterday, president trump making an announcement on a has to tracking of convalescent plasma treatment. listen to what he said yesterday. pres. trump: through this study, over 100,000 americans have already enrolled to

alix seel hs t wk of. we re cunting ydown to teuropean close.d and t n aproach t sing policy. powell, hw de g every f >>we a s a

taylor: live from new york, alix steel is up-to-date. we are coming down to the european close on bloomberg markets. friday.s equities are fairly mixed right now. we will talk more about that in just a moment. in terms of what else is going on, there is a focus on what's happening with china. carrie lam is going to be sanctioned in hong kong. s&p is flat right now. there seeing a big move for dollar. it's trading down as you can see. it's a similar story against most major currencies, including the pound. , youlso see a bond market see some a pretty solid data on the industrial front out of germany and france. that points to a v-shaped recovery. we are going to talk to the cio of capital. it with some of the atlantic you want to put your money in? we will talk about that in the united states. u.s. labor market continues to be a big focus. the jobless rate is 10.2%. ofs is quite a bit shutdowns, a lot of hotspots. jonathan ferro talked to larry his take in that. he was raising that point about the hotspots and how good he thinks this numb

alix steel has the day off. this is bloomberg markets. talk about one of my favorite subjects. papa john's shares up this morning, the company posting a in americanump sales second quarter. is this sustainable, particularly if we see the stimulus checks this appearing? , thedent and ceo rob lynch growth numbers are strong, you are growing really well, you are doing the best you have been doing in years. you have change a lot of things with the company, and you have the big macro factors working in your favor. i've got a simple question. thatuch of the $600 a week people have been getting from the government do you think has been spent on pizza, and if that number were 400, do you think the profitability numbers would be lower? has been always resilient in terms of economic distress. some customers trade up, some trade down. stimulus checks are helping the economy as consumers have not felt the full effect of the economic challenges that we face, and if those go away, we think we will persevere pretty strongly. we think customers that are

dominate mainstream media in the west and that's without any facts or even a hint of proof meanwhile alix in the valley is currently in a medically induced coma in the hospital in germany however his condition is non-life threatening from costa ok let's bring in neil clark author and journalist the dissaving good to have you back on thanks neal germany as we heard there is reportedly willing to cooperate with russia on the bounty case what sort of cooperation do you think we could see. what we need to have the fullest possible cooperation really don't we obviously something happened. on the flight we've got the german doctor saying that they believe it was poisoning the russian doctors who looked at him and looked after him after what happened on the flight said there was no evidence of poisoning we got to try to establish together the germans and the russians actually what happened i mean that seems very very important everybody you know and let's sort of ashamed of it to the germans come back and say look we found the substance we're sure he was poisoned. then a criminal investigation i

chief executive speaking with alix steele. disney is leaning harder on its streaming business.unced that "mulan" will go straight to disney plus. joining us to discuss all of this is dani burger. good morning. what is disney's strategy expanding its streaming offering? >> good morning. this definitely seems like a shift in strategy and it is one that is preparing disney for for a new world where people are traveling less to go to theme parks and likely not visiting cinemas as much either. theme parks still the core of their business but they have a lot of safety measures. the "mulan" move is interesting. there had been hesitation from disney to launch this on streaming services instead of straight to theaters but again this really shows they know that the world has changed. perhaps that change will continue. their c.e.o. said view this as a one off but at least for now. they are going to charge $30 to see "mulan" along with the charge of having disney plus and if it works well, don't be surprised if disney continues to make moves like this and continues to release movies to the

bloomberg,n bloomberg markets with alix steel and myself later on, we will be looking at market risk.s gold continues to push on. york, 3:30in new p.m. in london. this is bloomberg. ♪ ritika: let's get the bloomberg business flash. saudi arabia's state run oil giant plans to pay $75 billion in dividends despite a profit 73% drop ina earnings for the second quarter. the company expect its performance and demand for energy will improve over the rest of the year. most of aramco's payout will go to the saudi government, jones 98% of its stock. warren buffett is gambling on better days for berkshire hathaway. spent 1.5haway billion dollars buying back its own stock in the second quarter, and that higher pace may have kept going in july. bircher posted a 10% drop in operating profit, -- berkshire posted a 10% drop in operating profit, slower than some analysts predicted. priceing to reuters, the of close to $5.5 billion is said to be competing with private equity firms. it is a software company focused -- rober is ar software company. that is your bloomberg business flash. guy: thank you ve

alix: but don't you need the oil and gas assets to make that work?ith the reset what we wanted to do is consistent with strategy. this decision was rooted in strategy. absolutely rooted in strategy. we want to become an integrated energy, b. we need to invest into the transition. to do that, we need to do the outer range of prices. what we set out yesterday is a framework, a financial framework, that has a balance point a $40 oil. we can do these things at $40 oil. by the way, if oil is less then $40, we will take actions to preserve that. verywe have laid out is a resilient distribution policy that enables us to invest into the transition, giving shareholders a fixed dividend and the potential for at least 60% of buybacks, if there is excess cash flow. is the ceo of bp. a quick check on the business headlines. revenuefirst time, the has exceeded brought in from the print edition of the new york times." digital millions of subscribers. total revenues fell more than 7%. bankers were the breakout stars in the otherwise gloomy first half. they may not g

brands authentic chairman and ceo james salter speaking with alix steel.murky is to -- murkiest trades. some lenders sitting on trades they say are worth about $250 billion. we are joined by a bloomberg finance reporter, who wrote a book about zombie banks back in the day. talk about these murky trades. they are a little bit harder figures, the these level 3 assets we are talking about, which are the scary things, are not like to be seen on bank ballots sheets -- balance sheets, were much bigger during the last crisis. $1y were almost close to trillion, not just a few hundred billion dollars. so it is not as bad. [laughter] but they still happen. these are the things there is no pricing for so they use their own models to price them. that is why they are not so liked by investors, but they are still around and they really surged during this current crisis. greg: given that, what is the risk? i noticed some of the comments saying forget about market to market. this is markets a myth. that got us in trouble before, a decade ago. >> yes, we were especially pa

. ♪ i am guy johnson, kailey leinz in new york, alix steel off this week.atching "bloomberg markets." let's see what is happening in the crude market and in the gulf. the data from the iea, a drumroll required because that has yet to hit my screen. we are not quite at half past, and when we get those numbers, we are expecting a draw, bigger than anticipated, $4.6 million draw. gasoline draws significantly more than expected. we are getting a little bit of a surprise out of the crude market , but all eyes, brutally honest, focused on what is happening as we await the arrival of hurricane laura, cat three or four. outages forvide months to come. just your quick reaction to the data we are getting out? harry: first of all, on the headlines, it is constructive in the declines in crude and gasoline stocks. we will have to go into detail into what is driving the decline, but it is relatively constructive and largely anticipated. even if the numbers are bigger than what the survey was indicating, directionally, this is more or less in the price. nonetheless, const

alix steel is back monday. we are counting down to the european close. here's what you need to know about europe. speaking of the virtual jackson hole event, andrew bailey, governor of the bank of england says negative rates remain on the table. there are times, he says, when you need to go big and you need to go fast. angela merkel, german chancellor calling on germans to avoid virus at parts of the world like united states. from a press conference, she said there is still a long road ahead. the dutch government has extended its buyers wage support scheme by nine months, continuing what we have seen in germany, but not significantly united states. let's talk about what we are seeing in the markets. what we havey, seen out of japan. we continue to watch what is happening with the replacement for shinzo abe. the pound is big today. we are up by 1%. governor of the bank of england indicating we are going to see the possibility of negative rates. we are, as you can see, seeing a big bid for the yen as well. dollar is down. stoxx 600 is low. s&p absolutely f