and, the ceo of bridgewater. what motivated you to write this paper, to renew and sustain economic power now. >> it is honor to be here at hoover and it has been something i'm thinking about for some years. it came out of my time in the government, the national security team, different roles in the white house and the treasury and so forth. over time as i reflected on the changes in the world and the design of our government, questioning with the united states is set up for success, and the number of trends questioning whether america had a strategy for maintaining its economic life which is tied to its national security strategy which says that you wrote that it is national security. those trends and technology that winner take all technology offered huge national advantage, and national security benefits. the economic interdependences of the global economy, we see that with the interdependence and supply chain. the ubiquity and challenges corrected by cyberspace we see, some -- most of what was on their mind wa

ray dalio's bridgewater suffers a drop in the wake of heavy losses at its flagship trading strategy.und giantthe hedge mostly reflect returns rather than client withdrawals. firm got hitd the by coronavirus at the worst possible moment. global news 24 hours a day -- global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. good morning. nejra: trillion dollar measures. the bank of japan increased its estimate of the size of its virus response. ♪ manus: this is "bloomberg daybreak: europe." central banks have got swag today. the rba says the economy will likely need policy support for some time despite improving signs. the central bank released minutes of its june meeting when it left the benchmark rates bond yield target at 0.25%. the boj revise the estimate for the size of its virus response measures to around $1 trillion. the central bank pledged to do more to help if needed. it left rates and asset purchases unchanged. the boe meets on thursday. it is expected to focus on its quantitative easin

i will be catching up with the co-cio at bridgewater, bob prince.t coming up later, starting around 1:00 p.m. eastern time. tom: i would suggest your interview will be interesting to global wall street. the idea of what we heard at davos, the dampening, the slow down, a lassitude to the global economy, and what that will mean for the markets. it is good to get prepared for the bob prince interview by peeking -- by speaking with peter hooper at deutsche bank who leads an acute an interesting set of economists. week howzing each deutsche bank delivers something different, a different thought on the zombie nature of the slow down or an interesting ratio. peter hooper, wonderful to have you with us. bob prince is in the investment world of bridgewater and he would talk about the effect of the zero bound on the markets. from where you sit as an economist, what are the effects of the permanence of the zero bound on our financial system and our markets. peter: good news in the u.s. is the fed is taking the zero bound fairly seriously. unlike a number of ot

of bridgewater. and david joined bridge water in 2009 who previously served as esident and co-c.e.o. before becoming c.e.o. he was u.s. treasury under secretary for international affairs during the global financial crisis and served in senior posts on the national security council and in the department of commerce. rom 19999, he was serving as the c.e.o. and president of two publicly traded software companies, free markets incorporated and prior to that, was a consultant. he is a graduate of the united states military academy of west int and has a p hmp d from princeton university and former army officer and is a soldier and statesman and interviewer and a scholar and -- entrepreneur and it is a real pleasure. we asked david to join us. and slept paper on economic might, national security and the future of the paper he co-authored. and it has a very important .deas that we have to discuss and associated economic crisis stronger and even more competitive. and david, you had a unique advantage on the u

that was the bridgewater co-cio, bob prince, speaking to us.rging market stocks have risen to the highest level since march despite that morning from bridgewater and others that than they -- the virus may have an outsized impact on developing nations. bridgewater's former head of the emerging markets. great to have you with us. we have seen value in the em space compared to the stretch of valuations that we have in developed markets. are the risks increasing as we potentially see this grab for dollar return and dollar strength weighing into things? >> thank you for having me. great to be here. i guess on that point, the first thing i would start by saying, which is pretty key for anybody thinking about em is em -- this may sound funny -- em is not an entity. it is a basket of widely different countries with divergent valuations underneath. if you are talking about a broad-based em equity index, what we are getting is 50% china and china linked. half, youn that other see divergence is left and right. if you think about markets at strategieshat y

of bridgewater. and david joined bridge water in 2009 who previously served as esident and co-c.e.o. before becoming c.e.o. he was u.s. treasury under secretary for international affairs during the global financial crisis and

tom: i want to come off of jon ferro's important interview yesterday with bob prince of bridgewater, which is that we andnow at the zero bound there is a dampening of the economy, and elastic to of the economy. what if we go the other way and start to see a disinflationary curvecy, where the yield control is about two low -- about too low of rates? andrew: we have yield curve control to factor already in a number of places. it seems like there's a pretty high chance you will see this formally on the part of the federal reserve for too long, but looking to anchor the front end of the curve, not the 10 part of the curve like in japan, but the two to three year part of the curve, so that real commitment. it is going to be a long time before they raise policy rates. tom: we talked to anthony chris enzi the other day. what is the efficacy of yield curve control if they can only get about 36 months? -- only go out 36 months? andrew: i think there's only so much yield curve control can do when you have such low levels of yields, and with the shape of the curve we already have, i don't think

caroline: this is a big valuation debate being brought up by bridgewater.covid, but also the u.s. and china. maybe it is time that people are bringing manufacturing back to the u.s. at the expense of profit margins. i want to shift gears. we want to talk about inclusion and diversity. over the past decade, organizations of all stripes spend billions of dollars trying to get more members of underrepresented of groups to the top highest paying jobs. but, there are currently just four like ceos in the fortune 500 companies. fewer black executives at some of the big banks. how can companies or industries close the racial disparities at the top and potentially further down the hierarchy? let's get the insight from the chief marketing officer at ups. thank you for joining us. talk to -- talk to us about your career path. what do you think helped steer you to be a c-suite level executive at such a significant company? kevin: i was fortunate in that i started my career as an intern, and i did have a degree in finance at georgetown, so i did have some instruction to

we will hear from bob prince from bridgewater associates. this is bloomberg. ♪ >> this is bloomberg: markets. a quick look at the markets. you can see the imf has reduced its global growth forecast and is increasing contraction forecast for this year. , as weighed on stocks early did other states joining the curve steepening in the united states. new york, new jersey and connecticut saying they will have to quarantine before they come in. get back to the blumberg invest global summit which is in the -- which is underway right now. >> fantastic to have you with us at this conference. feels like an absolute lifetime to you and me. we were in the mountains of switzerland and we know they are often detached from the world around us. you said something to me that woke all of us listening. you said the boom and bust cycle as we know it is over. a couple of months later, i wonder how you have reflected on those comments and whether the policy response has summarized that. >> we have certainly transitioned to a new monetary policy regime and the nat

ray dalio's bridgewater is warning of a possible lost decade for stocks. corporate debt set to rise due to the pandemic. coronavirus cases in the u.s. are spiking across the sunbelt as the economy reopens. arizona, texas, and florida have reported highest case numbers yet. from goldmanns us sachs. thank you so much for talking to bloomberg surveillance. when you look at the difference in the market, they started off being worried about a second wave. now they seem to be much -- taking it much more in their stride. is it all about government and monetary stimulus? i think we are having some technical difficulties with christian of goldman sachs, but we will actually fix the line. these things kind of happen when everyone is working from home. i don't know if you can hear me now. i think we have fixed of the line. i hope we can talk about the market. >> yes, i can hear you. francine: fabulous. how do you look at the second wave of infections in beijing and the u.s.? what does that mean for the economies and the market? >> yes, markets have clearly shifted to

you've got to get the bridgewater view will not right now.han: i will bring up all of those issues. don't worry about that. that is tomorrow at the bloomberg best conference. from new york city this morning, good morning to you all. alongside tom keene together with lisa abramowicz, getting you ready for the opening bell. futures, upity about 0.9%. bonds creeping higher as well. 8:30 eastern on bloomberg tv and bloomberg radio, exclusively sitting down and catching up with the st. louis fed president, jim bullard. this is "bloomberg surveillance ." with the first word news, i'm ritika gupta. a warning from infectious diseases chief anthony fauci and other top health officials. they will tell congress today they are preparing for a flu season that will be complicated by the coronavirus pandemic. they don't expect the pandemic to be mitigated by vaccine anytime soon. the cdc has developed a test that can check for both viruses at the same time. is visitingump arizona today and will focus on an issue that was a winner for him in 2016, border sec

jonathan: bob prince of bridgewater, the co-cio come up joining us yesterday.f an tested lineup of guests and interviews over the last couple of days, and a really interesting conversation with one of the top guys at bridgewater. from new york city this morning, good morning to you all. alongside tom keene, together with lisa abramowicz, i'm jonathan ferro. 12 minutes away from initial jobless claims in america. we are down 22 on the s&p 500, down 0.7%. in the words of texas governor greg abbott, we face a massive outbreak across the state of texas. that could constrain the reopening plans for several states across america, weighing on sentiment over the last couple of days. in the bond market, it means lower yields, flatter yield curve. i said this a little bit earlier. as the session grows older, the euro coming in 0.4%. that is a weaker euro, a stronger dollar. tom: i am glad you mention that. texas beleaguered. disneyland will not open in anaheim. the good news is something that may open is the nba, and that would include the los angeles lakers. the is lebr

jon: mark meredith in bridgewater, new jersey.k, thanks as we watch the 757 version of air force one on final approach to joint base andrews, and we'll see if the president has anything to say when he emerges. we will be right back. ♪ did you know prilosec otc can stobefore it begins?urn heartburn happens when stomach acid refluxes into the esophagus. prilosec otc uses a unique delayed-release formula that helps it pass through the tough stomach acid. it then works to turn down acid production, blocking heartburn at the source. with just one pill a day, you get 24-hour heartburn protection. prilosec otc. one pill a day, 24 hours, zero heartburn. my age-related macular degenso today i made a plan with my doctor, which includes preservision... because he said a multi- vitamin alone may not be enough. and it's my vision, my morning walk, my sunday drive, my grandson's beautiful face. only preservision areds2 contains the exact nutrient formula recommended by the national eye institute to help reduce the risk of moderate to advanced a

chris: mark meredith reporting from bridgewater, mark, thank you.s hud secretary ben carson. mr. carson, i want to start with that terrible incident in atlanta. i assume you've seen the video. rayshard brooks was clearly resisting arrest and then ran away from officers with one of their stunt guns but was it appropriate to use deadly force against someone whose originally offense he fell asleep at drive-thru window at wendy's? ben: chris, my previous career at john's hopkins, when we would have untoward event we would establish internal review board of people who actually knew what should be done and review every aspect of it and then desimilar -- decimate findings to make sure it didn't occur again and this is a situation that's not clear-cut like the callus murder that occurred in minnesota and requires heads of people that know to make judgment. chris: why do you say it's not clear cut? ben: in the case of minnesota there was an officer -- chris: i understand that one, why was the atlanta case not clear-cut? ben: because we don't know what was in

and the water striders subsist bridgewater's are supposed to prevent flooding but the delayed the inevitable in the future 66 meters of rising sea levels. in 75 minutes. on t w. w's crime fighters are back africa's most successful radio drama series continues this season the stories focus on hate speech cholera prevention and sustainable charcoal production. all of his sos are available online and of course you can share and discuss on africa's facebook page and other social media platforms. crime fighters tune in now. it. what do they dream of at night. as cleaners they see the face of horror. their job censoring for the social media industry. in manila there are thousands of so-called content monitors pay for jay they scrub terrifying images from online platforms horrific job for starvation wage. the strain it is enormous and. i quote. i need to stop there something was up to. the cleaners social media's shadow industry starts june 8th on d w. this is d w news live from berlin protests. across the world over the death of george floyd in the us people are gathering at the spot in minneapoli

chris. >> chris: mark meredith reporting from bridgewater, mark, thank you.oining us now, hud secretary ben carson. mr. carson, i want to start with that terrible incident in atlanta. i assume you've seen the video. rayshard brooks was clearly resisting arrest, then ran away deadly force with one of their against someone whose original offense was that he fell asleep in the drive-through lane at a wendy's? >> secretary carson: you know, chris, my previous career as a surgeon at johns hopkins, whenever we would have an untoward event, we would establish an internal review of people who actually knew what should be done and review every aspect of it. and then disseminate the findings led to everyone to make sure it didn't occur again. i think this is a situation that it's not clear cut, like the callous murder that occurred in minnesota, and it really requires some heads of people who actually know what should be done under these circumstances to make judgments. >> chris: why do you say sir it's not clear-cut? >> because in the case an officr who was clearly in

the bridgewater's are supposed to prevent flooding but they only delay the inevitable oblivion the future of 66 meters of rising sea levels from going to existing units on t.w. . terra cina a popular coastal vacation city in italy. but how are things there this year the food i'll tell and restaurant owners are concerned the corona restrictions have led to fewer guests and higher costs it's not the only place on the italian riviera that's facing challenges. some good sunday. 90 minutes w. . every day counts for us and for our planet. global ideas is on its way to bring you more conservation law how do we make citizenry mother how can we protect habitats what's with all our waste. we can make a difference by choosing smart and solutions overstrained said in our ways. global ideas limited series the movement sounds and on the bomb on. beethoven is for me. beethoven is for you. beethoven is for help. beethoven is for. beethoven it is for the. beethoven is for cars. is for the love of. beethoven 2020 the 250th anniversary here on deal there. this is g.w. news a live shot from bell that a fiery

the water striders subsists bridgewater's are supposed to prevent flooding but the delayed the inevitable. move in the future 66 meters from rising sea levels. in 15 minutes on t.w. . the beautiful sparkle is in the ugly secrets. might come from. the natural mineral gives cosmetics missioner. the most of it comes from illegal mines in india. those who extract it are children. didn't learn at all costs to soften. even 90 minutes on. ringback in the height of climate change. africa's most of. what's in store for. the morning and for the future. to come for the major cities to the multimedia inside clear cut or. invention. but can you come to the major issues of our society a. long season of founder sally. bianco kudos to modern day heroes in. inspirational people take on the challenges of the world who with their unique idea. of costume would face off from merriam minds to look at those 2 problems and move from one solution to a new season of sounders valley. starts june 13th on t.w. . this is the line from george floyd. the 1st of thousands of people filed past of the. protests around the

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cbs' nikole killion is traveling with the president in bridgewater, new jersey. >> reporter: it was hats to the class of 2020 at west point, which couldn't resist hugs at the end of a celebratory socially distant graduation that included spaced-out seats and salutes from afar by the commander in chief. >> i am here to offer america's salute. thank you for answering your nation's call. >> reporter: president trump touted american military strength and unity, and he only made a brief mention of the covid pandemic and recent unrests sparked by the death of george floyd. >> when times are turbulent, when the road is rough, what matters most is that which is permanent, timeless, enduring, and eternal. >> reporter: the president's appearance comes as his relationship with military brass has become increasingly strained over his handling of protests. a group of west point alums penned this letter ahead of his visit, "sadly, the government has threatened to use the army in which you serve as a weapon against fellow americans engaging in these legitimate protests." ♪ ♪ this as the president respo

this is bouncing off some of the commentary we had from bridgewater recently. if you think there is going to be or there is not going to be a lost decade, you can get involved with the question of the day and reach out to the markets live team and tv team. up next, worse than the dot-com bubble? we will talk with roger jones about why he thinks the risk rally has caused the most severe market dislocation into decades. this is bloomberg. -- in two decades. this is bloomberg. ♪ anna: welcome back to the european market open. still 45 minutes to go until the cash equity trading's -- equities trading day. let's get a bloomberg business flash, focused on some of the top corporate stories we are covering at bloomberg. ing has appointed steven van rijswijk as the new ceo, the chief risk officer and member of the executive board. whoucceeds ralph hamers, left ing to take the top job at ubs. has suspended its outgoing chief operating officer after the company revealed auditors -- jan marsalek was suspended on a revocable basis. he was do set down from the coo role to a

ray dalio's bridgewater suffered a 15% drop in assets under management in the wake of heavy losses forgship fund. assets fell to $138 billion at the end of april. according to bloomberg sources, clients of the hedge fund giant mostly reflect returns rather than client drawls. firmrch, dalio said the got hit by coronavirus at the worst possible moment. cerberus is preparing his next steps after commerzbank. that is after two seats were rejected on the advisory board. it could lead to a full-blown activist campaign. bloomberg, seen by the firm said it would dedicate resources to alternative paths to see changes at the bank. that is the bloomberg business flash. francine? on thee: let's get more prospects for a deal between the e.u. and the u.k. after an hour long video call. boris johnson described the likelihood of an agreement is very good. u.k. prime minister says there is no reason it should not get done by july. isning us now from brussels the ambassador of the european union to the u.k.. thank you so much for giving us a little bit of your very busy daily schedule. when you look at

it was a tough couple of months of ray dalio, the founder bridgewater associates seeing a 15% drop inets under management during march and april because of heavy losses at the flagship's trading strategy. that is the bloomberg business flash. tom? francine? with --: stocks are up stocks in europe are up, u.s. equities are also gaining after looking at corporate desk risks -- debt risk following the most in two months. the pound climbing as much as 0.7% after this positive talk around the frexit negotiation seems to have renewed hope that the deal can be reached by july. tom: now the data check has to do with a better equity market, no question about that. citigroup increased apple price target to $400 a share. wow is a while -- a statistic. stay with us. with anne richards of fidelity international, this is bloomberg. ♪ tom: for the best in conversation, bloomberg surveillance from london. later today, after our powell,tions, chairman a queuing day a with the senate. tomorrow, a q and a with the house. chairman will avoid being as grim as the tone was in the press conference. scott ke

prince in bridgewater, that we will have a dampening of spirits as and central banks are faking yieldve control? or will it actually bring on a new volatility? i would expect, for the time being, that this policy regime, where the frontiers between the central banking and limitedolicy is largely to an environment where we have limited volatility around bond , simply because, as you have suggested, we have governments putting out central banks buying for debt instruments. whether it's an implicit or an implicit form, the reality is that it's this compilation of bonds coming out, issued by the government and being purchased by central banks. which leads to stability for the time being. if we get this, and we have a not pernicious dampening, but a quiet lassitude across the markets. to increasing leverage? or people who have the confidence to leverage up because things are so calm? philipp: it could be. leverages a courageous thing to pursue in an environment where there is so much uncertainty. you can imagine a scenario where things get better. you can continue to have this bond yield r

ray dalio's bridgewater warns the pandemic and the trade war could put profits at risk for the next 10 years. and coronavirus cases continue to surge in the u.s. sun belt, while latin america also sees infections climb. beijing canceled hundreds of flights amid a new outbreak. good morning, everyone, and welcome to "bloomberg surveillance." i'm francine lacqua, here in london. tom keene in new york. we had a stunning headline from christine lagarde moments ago that moved markets, and at the president of the ecb has warned e.u. leaders just convening as we speak in a videoconference to talk about that package, the stimulus package the commission had put together. it needs to be signed off and ratified by each member state. christine lagarde warning e.u. leaders of market risks if they do not sign off on that deal. agree with you, francine. on a friday in june, this is a huge deal. for me, the headline of the week was qantas in australia delaying international flights into october. madame lagarde is on that calendar. i'm sure what she is saying come and much of what we saw in the united

ray dalio's bridgewater suffered a 15% drop in assets under management in the wake of heavy losses atts flagship trading strategy. assets fell to $138 billion at the end of april. according to bloomberg sources, declines of the hedge fund giant mostly reflect returns rather than client withdraws. in march, the firm got hit by the coronavirus at the worst possible moment, they said. that is your bloomberg business flash. manus. a lot a lot of -- matt: of fascinating stories. one that has the market moving this morning, the term administration is said to be considering nearly $1 trillion for infrastructure project. s&p futures despite to session highs on that news. the plan will focus on building roads and bridges but funds would also be made available to boost 5g and broadband services. we are joined by the chief economist at kpmg. let me get your take on the importance of this. we know the u.s. has some crumbling infrastructure issues, but -- infrastructure projects. we hear from economists. they don't necessarily get speedy help to a damaged economy. howt really just depends on advan

bridgewater warned this week for stockst decade due to shrinking corporate profit margins. even if corporate profits recover from the coronavirus, some companies will die or their shares will devalue along the way. companies are likely to come out on the other side of the coronavirus more indebted. what could that mean for equity markets and overall corporate health? for perspective, let's turn to michelle connell, owner of portia capital management in fort worth, texas. pray to have you with us. this chart on the bloomberg also showing how u.s. earnings are completely disconnected from stocks. morgan stanley saying u.s. corporate earnings have become so disconnected from stock rises that the gap bears watching. we have seen earnings drop in the first quarter by 16%, the biggest decline since 2008. how concerned are you about this? michelle: thank you for having me on bloomberg. i really appreciate that. . am concerned about that people keep talking about the disconnect between the equity and all investment markets versus the underlying situation. year-to-date, nasdaq stock

tom: david rosenberg, our jonathan ferro will speak with our guest from bridgewater oh on interview that-pandemic. there will be talk of dampening of the economy over zero bound and what it does to the markets. will there be more volatility with our trip through the zero bound? david: i think that the bottom line here is that this has nothing to do with the economy. the financial markets have nothing to do with the economy. the stockappened with market in the past few months has zero to do with anything but a v-shaped recovery, it has everything to do that with the fact that you have the central bank. you have fed with an endless pocketbook, that has taken the risk premium down to zero. thanis a different ben anything have seen in the past. i would say that they got totally mitigated volatility in the marketplace, have totally eliminated the risk premium in the marketplace. untiley will continue they are comfortable with the fact that the economy is on a self-reinforcing growth --. it will be three years. it is like powell is the blackjack dealer in the casino handing out chips for free.

estimates and assessment is it is very different for the bearish commentary coming from ray dalio with bridgewater. we expect a decade of double-digit gains in 2020. near-term,e, in the six to 18 months, we would not be surprised to see the s&p trade to 4000 in the next one to two orders. nejra: what i found interesting overnight as we saw u.s. futures take a hit to the tune of as much as 1.6%. european futures have been absolutely resilient through the asian session. should we read anything into that in terms of if the market does get more jittery and concerned over u.s. china tensions, it is the u.s. stock market that is going to take a greater had been europe, which has come back in favor with some investors with the action the ecb has taken and also with recovery fund? extent, what is going on is basically the u.s. market is leading these issues. we have to be cognizant of the fact that everything that has lagged. andmerica, the technology the health care sector makeup 52% of the u.s. market. they have led the rebound since we hit lowe's in march. , theylook at u.s. stocks are much lower than

ray dalio's bridgewater is warning of a possible lost decade for stocks seeing profit margins at risk with levels of corporate debt set to rise due to the pandemic. joining us now is our guest from blackrock. great to have you with us. it looks like we have seen a little bit of risk appetite resume on a weekly basis for global stocks, even if the powerful rally we saw for much of june has stumbled a little bit on the second wave fears. what have you seen in terms of investor appetite for u.s. equities versus the rest of the world? particularly given what ray dalio set the lost decade is coming? >> hi there, good morning. i am going to reiterate our pro risk balance stance at this point. is really for that along a few angles. you just talked about the jobless data yesterday meeting expectations. is that wepicture likely already have seen the worst looking at what has come through for may, april. if you think about containment , theres for the virus second wave will not be as severe for the first wave. from here on, increments will be very strong. we see that coming through in retail sa

we will hear from others like david solomon and bridgewater. this is balance of power.mberg television and radio. ♪ david: this is balance of power. we have been watching the markets closed for the entire hour because they have been selling off on news of the coronavirus kaylee is here to take us through what we are seeing. >> we are off the lows of the session we are still down on the major averages and i could point to a number of reasons why. you have the fact that valuations have gotten lofty, you have renewed fears of tensions on trade. that was true when i came in this morning, when we really sought the selloff deepening was when we saw headlines about the surge in coronavirus cases. houston area intensive care units were set to be at 97% capacity in the announcement quarantines, all of that seems to be rattling investors, shaking the resilience you have seen. they are very optimistic the crisis is nearing its end they are hoping the economy will recover more quickly than indicated. in cases of resurgence may be throwing a little bit of cold water on that. as a pr

mark meredith is live in bridgewater, new jersey with more.rter: arthel, good afternoon. the president had a chance to really show his support for the military service members, both before those that were serving prior, those that are serving now and those that will come. this year the ceremony looked different at west point. like the rest of the country, it's been dealing with the coronavirus pandemic. the cadets that were there today, they were able to celebrate. they had to maintain their social distance. family and friends were not allowed to witness part of the ceremony because of course the coronavirus. but that did not stop the president from celebrating their achievements and also praising those men and women that have a lot of service still ahead of them here to the country. >> what has historically made america unique is the durability of its institutions against the passions and prejudices of the moment. when times are turbulent, when the road is rough, what matters most is that which is permanent, timeless, enduring, and eternal. >

hear from bridgewater .ssociates' co-cio this is bloomberg. ♪ paul: singapore will hold an election on10 as the government seeks a new mandate with the coronavirus pandemic as the city state enters the second phase of lockdown easing following two months where schools and most workplaces were shut. let's cross over to our chief southeast asian correspondent. what does this have to do with the timing of the election? it's not far away. haslinda: that's right. it is into -- it is in two weeks. parliament has to be dissolved by january. elections need to be called by eckel 2020, so the government was running out of time to hold this election. in an address to the nation yesterday, the prime minister said he is trying to seize this period of virus stability to hold the election. instability as to when we will see the end of this pandemic, so he is really andg this year's virus stability to hold the election. as you said earlier, we are in the second of a three-phase emergence from the complete lockdown. in terms of timing, he said that we need a strong mandate right now to give a strong te

jon and i had a legendary issue with the people at bridgewater at davos, and it was a huge issue.o you get a dampening function in fixed income as you go down to the zero bound? we get an update from matthew ubs and credit strategy. do we get a dampening and markets? -ness becauseeaden we are going zero bound out for the next two years? matthew: i think what you have seen is the fear of missing out, and certainly the reach for yield has intensified. in credit broadly, high yields and inflows have been best example of that. we have gone to pre-covid levels, up about 40%. from our perspective, it is really portfolio rebalancing acceleration. to us onen a surprise the high-yield side. you had equities dip pretty significantly and lost a couple hundred million in high yield fund outflows, but the money came right back. really, what we are seeing is a pretty aggressive reach for yield as we sit at zero, and that is expected to sit at zero for several years. our house view calls for yield curve control later in september, all of that feeding the grab for some type of income and annuity.

alix: yes, because we had ray dalio with bridgewater yesterday saying that it is a lost decade for stocksan you had someone else say that i was a little too conservative and i should have been more aggressive. there is a narrative that retails investors could end up being a self-fulfilling prophecy, because the amount of trades they put on our small but there is a lot of them. is that a real narrative? mark: the real narrative is that, again, the timeframe. certainly, hedge funds recently have underperformed in june. 4%,ay, they were up capturing more than half of the upside in the long-short portfolios. quant funds were up 1.5%. may was a good month. june, not so much. we have a cross market contagion indicator, fancy word for we look at 20 etfs globally across every asset, and we are able to divine out of the 21, which two etfs are driving the whole basket. etf,ne, it was the value the russell 1000 value. and it was treasuries. so, if treasuries rose up value rallied,. that was june. it created a tremendous short covering rally, we can't speak to retail, as well as things like retail en

lisa: and we aren't talking that much about deglobalization except for bridgewater putting out a reportesterday saying that they expect that to potentially eliminate corporate profitability over the next decade, and how there seems to be consensus on republican and democratic sides that there needs to be some sort of amplification of the trend we have already seen. that is a big headwind, and i am trying to get my hands around exactly how people are factoring this into their models. jonathan: one element ahead of november. the other that i think we really have to focus on, and this is a pure observation of the fact of the moment, for market participants, it is not just about the white house. it is about the senate. that is the big hedge for market is offense. if the senate stays republican, that will be perceived as market positive. if that is threatened, we have a very different equation to think about come november. tom: you see that right now, and you see that within the analysis. the cook report looking at montana. montana, of all things. montana is out west. grizzly bears. jonathan

gillian: happy birthday to the commander in chief, live in bridgewater, new jersey. leland. leland: we bring in cbp commissioner with 30 plus years in law enforcement mark morgan, commissioner, we appreciate it. after the george floyd murder and people watched that video there was a universal feeling of sickness especially by career law enforcement people who could tell and understood instantly how wrong it was. what's your initial view of the video that we saw of the shooting in atlanta? >> leland, completely different. first and foremost any use of force, especially use of force that results in someone's death has to be intensely scrutinized. you're right. you showed viewers right now, mr. brooks, he didn't just resist a lawful arrest, he did so violently. he fought with the police, again and again. he took their weapon, one of their weapons and tried to use it against him. that's a differently complete set of circumstances. i've been there and i've on full on fights before and it's a difficult thing and police officers have to make a split-second decision in that time and

john prince of bridgewater will be with jon ferro tomorrow, the interview of the week for those thingt the zero bound. someone that has to put up with a zero bound is yana barton with eaton vance of boston. of course, they are notorious over the years for wonderful municipal bond work, but she works more in the growth enus -- iness or the lack of growth in the equity market. you are focused on things that have fallen by the wayside. what are you looking at right now that has fallen by the wayside? yana: great to be with you. i think you have correctly noted that the market, while being down 2.5%, there are a lot of companies down significant more. the average stock is underperforming the broader market, and that is what we are focused on. growth continues to be in limited supply. if you are investing for the long-term, there is a time to focus on communication services, consumer and health care companies that have lacked the market -- that have lagged the market. jonathan: we have seen the cyclical rotation fade over the last few we read what do you make of that? yana: i think it just

mark meredith is following the president in bridgewater, new jersey and he joins us now.ark. >> reporter: arthel, good afternoon. president trump is spending part of his 74th birthday in new jersey. he'll head back to d.c. this afternoon. it's possible as he makes his way back to d.c. he could address the officer involved shooting in atlanta. it was a couple days ago that the president said he wanted to see an executive order on what could be done for police reform. we have not seen the exact language of the executive order yet. congress of course is considering its own course of action, that is expected in the next several days. and now we're hearing from the president's hud secretary, dr. ben carson, about how the administration wants to address the police reform movement that's gripping so many american cities. >> i expect that the president and the administration to engage appropriate stakeholders and to look at everything and obviously we do not want to create a situation where the police are under the microscope and that they don't want to do their job, because they

mark meredith is live in bridgewater, new jersey, near where the president has been spending his birthdaynister. >> reporter: it's possible president trump could weigh in on the officer involved shooting in atlanta. it's possible he could talk before getting on of dashboard air force one. the president's hud secretary, dr. ben carson, is speaking out, saying the administration is listening to different groups when it comes to possible reforms for the police department nationwide and he believes the administration will address the situation when it comes to police pretallity and -- brutality and misconduct. >> obviously, we do not want to create a situation where the police are under the microscope and they don't want to do their job because they're afraid. that is not going to be useful. >> reporter: last week the president had a chance to meet with law enforcement officials at the white house. it's unclear if this latest shooting in atlanta will prompt any additional meetings in the week ahead. the president, though, said in a recent interview with fox he is certainly willing to listen.

nbc's kelly o'donnell, my colleague, is in bridgewater, new jersey, outside the president's bedminster property. what are we learning from the president who is trying to balance the calls he's hearing loudly for police reform and his instinct to drill into this idea, as he tweets often in all caps of law and order? >> reporter: that's so right. it's the instinct versus the moment and what is happening in the shift in our culture and society with much broader call for police reforms and more sensitivity on the issues exposed by the death of george floyd and the response we've seen around the country. so the president is not wanting to back off what he thinks is a core part of his appeal to his base, being a law and order president, one of the ways he defines himself, also embracing law enforcement and yet trying to figure out a way to answer this moment. so we saw from the president in dallas where he's talking about some things he could do through executive order, and at the same time we know that congress is looking at way z to do things legislatively that are much more aggressive tha

. >> kelly o'donnell live in brid bridgewater, new jersey. courtney, to you, walk us through your exclusive new reporting on general mark milley. yesterday, his apology creating a bit of a ripple effect through washington, d.c. and across the country. >> that's right. so he gave this speech to the national defense university commencement yesterday, a pretaped video message and in it he says that taking part, his taking part in the photo-op at st. johns church now nearly two weeks ago, he said that was a mistake. he talked about the importance of the divide between the uniformed military and politics, he said by engaging in that photo-op, by being a part of it, he blurred those lines. and he regretted it. so general milley, the reporting that our colleague carol lee and i had out last night, it basically looks at what milley had last week, a pretty rough week. he was -- monday afternoon he was pulled -- called to the rose garden, president trump spoke, and he was taken out over to st. john's, and where he didn't realize he was going, and then

of the coronavirus, he said in a note, this week, that stocks would be on verge of a lost decade bridgewater in march and april, 138 billion dollars from one 53 billion what do you make of what he is saying? >> i think he is right to be very concerned, one of the biggest issues right now, is like i was saying with 20% companies being zombie companies, we have an unbelievable debt load huge burden on economy at federal level unprecedented levels of debt about the at corporate level as well this year alone companies so far issue abouted 57% more debt than they did last year, and that debt isn't being used to invest in future protective capacity it is just meant to keep your headed above water, now what you that means you've got more and more debt that is dragging down future growth, and you are going do have to care that load into the future, means can invest less in the future. dagen: something center of to me pomboy has been talking about a couple years lenore great to see you more "mornings with maria" right after this. >>> the content crackdown facebook movieing dozens ads from president t

nikole killion is in bridgewater, new jersey, near the golf club where the president is spending theeekend. he's been criticized over next friday's rally. explain why. >> well, vlad. >>> african-american lawmakers object to holding this rally on juneteeth, an annual celebration to commemorate the end of slavery. they also object to the location in tulsa, oklahoma, where hundreds of blacks were massacred nearly a century ago. in response to the backlash, the trump campaign says the president has built a record of success for black americans. this as he defends one of his most controversial tweets. >> more than 8 minutes of horror. that's 8 minutes of horror. it's a disgrace. >> reporter: in his first interview since george floyd's death, president trump condemned the incident. but he stood by law enforcement and defended his now controversial tweet in which he threatened the use of the military in minnesota and said, when the looting starts, the shooting starts. >> it means two things. very different things. one is, if there's looting, there's probably going to be shooting and that's

bridgewater's boss out with a note environment warning of a possible lost decade for investors. and we were told earlier this week that it is the fourth real mccoy bubble of his career joining us for more, tom lee, co-founder and head of research at global advisors tom, i'm pretty sure you'll hav the polar opposite view. are you concerned about the spikes and cases we're seeing around the u.s. or were you expecting them and it doesn't draw you away from your positive inequities >> everyone needs to be watching the health care time frame and the time line and case improvements rising cases is not a good thing. i think it's healthy and positive that a lot of cities and states are course correcting and requiring masks. cases are rising and historically cases rose in tandem with deaths and hospitalizations that is not taking place >> what about news today that apple has to close stores in the hot spots? it's not a huge revenue driver or anything like that but psychologically for the market, when you see companies that have been there, done that like apple and starbucks, they did it

arthel: mark meredith live in bridgewater, new jersey with more, hi, mark.l, this morning president trump had a chance to salute west point class of 2020 in his commencement speech he honored those that have served before but also those that are just beginning their career and as you're looking different it was celebration, of course, but social distancing was in place for the cadets as they heard from the president during his speech. the president also praising their sacrifice and service of so many. >> no evil force on earth can match the noble power and gracious glory of the american warrior. i have no doubt that the young men and women before me today will add your names to this eternal chronical of american heros. mark: the president also mentioned the military service right now as the country battles the coronavirus pandemic. he also praised the national guard service members of those people who have been helping during turbulent times. also honor for him to be at the event. arthel. arthel: mark, the president has been eager to get back on the road for

john in bridgewater, north jersey -- it is your turn. you oppose another shutdown.tdown was for the and ashley. my house ineft three months. i am in my 70's. itid not like how they used against trump every day, every night. it was his fault. now, after the protests, it is mask people everywhere -- nobody said anything about don't worry about it. that turned me off. i understand it is politically -- purely political. i do oppose a new shutdown bangse it is only used to trump. host: robert in aurora, indiana. what do you think this morning? i am for keeping it open. they did not worry about it when there was burning, looting, writing in the streets. they did not worry about it then. they are trying to defund the police. i wish the cops would take off for a month and let these idiots know how much we need them. stupidity that we have people out here against president trump, who is trying to get this country straightened out. it is people's fault that do not pay attention to what is going on. host: robert in indiana approaching -- proposing another shutdown. texas repor

brian: yup, mark meredith joins us live with bridgewater, new jersey with details on the president'sey, brian, good morning to you. the president says he wants to do the opposite of defunding the police. instead he says the focus should be on things like community engagement and retraining. the president says soon he is going to sign an executive order really to address this crisis that's facing so many american communities we are dominating the street with come bags because we are saving lives and businesses and saving families being wiped out after working for 20 and 30 years. >> the white house has not unveiled the exact language of this but expected to address economic development in minority communities. confronting healthcare disparities and encouraging limits to meet standards for use of force and renew calls for school choice. tim scott of south carolina is expected town vale his own police reform bill next week and you may remember house democrats introduced their own legislation on monday. it called for a number of changes including a ban on choke holds. former vice preside