the quality of our guests there, including rebecca patterson of bridgewater, saying complacency into october, ramp it up ritika: . right now -- ramp it up. right now, we welcome all of you. it is simply a monday friend from what we knew friday. jonathan: it is not a quiet start to this monday morning. equity futures down hard. a bid into the bond market. stronger japanese yen. everything you would expect to happen on a risk off monday is happening. when you look to europe and the prospect of tighter restrictions around some of these economies, look no further than travel stocks. break it down sector dissector. travel stocks down 5%. tom: what i find just extraordinary here is it is not just about the future of the

there are thousands of bridgewater employees.ople wonder why are there so many thousands of bridgewater employees because it is a relatively small number of products, macro box type strategies but it is sort of fascinating and shows you how much kind of money is in the firm, is in the business that they can just backstop whatever they feel they need to do to stay in power. >> let me go backwards for a second because i would like your take on this carvana move today. it's a monster stock today but they've had a monster year so i understand why they say we're a big player in this upsurge of players why do you think there's been so much movement here >> a huge bulge in used car buying in general happening. everybody wants to do to a remote basis, you don't want to go out and look for it, and they're a middleman. a $4 billion market cap, it's basically ebay's market cap. ebay has a tremendous business of selling used cars, acting as an auction site for them and has for many years it's fascinating why this market wants to pure play on

he's got some interesting management issues inside bridgewater.ng known as radical transparency where there's open debate on just about everything. and then he is a philanthropist. last year, he entered into with the state of connecticut a partnership called a partnership for connecticut to essentially distribute $100 million of his own fortune coupled with $100 million from the state for education initiatives to provide education for low income students, better their education, provide them with computers. suffice to say, that project didn't end well. it ended very poorly. they barely spent i think something like $20 million of the $200 million promised were spent. liz: is that his fault? why is that his fault? charlie: they fired their ceo, a woman by the name of mary ann schmi schmidtcari who is firing back at them saying she was improperly fired for those mishaps. she filed a defamation suit against dalio philanthropiephil. we did a full write-up on foxbusiness.com which we have the lawsuits. she's seeking $2.5 million in damages. very interes

by the way, bridgewater, big hedge fund, ray dalio just made comments before the new york economic club about china as an investment. i will let you know what he said. >>> get your bets in. the nfl kicks off tonight as an explosion of betting sites battle for your sports gambling dollars. one of the biggest digital sports platforms is expanding its gaming opportunities because it sees a huge mega-billion dollar pie. the ceo and founder of the score is here in a fox business exclusive. less than an hour to the closing bell, let's start "the claman countdown." liz: all right. as we said, breaking news. as soon as president trump gets in front of the podium there, we are awaiting a news conference where we are expected to hear from him at the white house press briefing room. that's a live picture. we will keep you posted. >>> in the meantime, literally the timing was very interesting. just minutes after the gop covid relief bill fell short by eight votes, we heard that the president was going to get before the microphone. all republicans except for rand paul of kentucky voted yes for the b

that's what we see as the dynamics going on, and us at bridgewater, our job is to be like mechanics ofnd how the machine works and really we've had this shift that makes the economies operating more like it did in the 3'30s through the lat '40s than the era most of us are used to. understanding the mechanics of the mondayer it and fiscal policy linked and attempt to achieve a government goal beyond the normal cycle in the economy and that's really what's going on so when we look at the world, we're looking at it through that lens and following those mechanics. >> so you say again, and this goes to what you're talking about here, the biggest cause/effect drivers are degree of speed, the policy response and its effectiveness. so what where does that lead you in terms of bridgewater and how you're allocating assets, and to what assets given this period and the correlation that you're citing to the '30s and '40s, what will do well and what won't? >> yes, if you think about the big things going on, right, you have the policy things you just mentioned and you have the conflict, that's growin

a bad year for bridgewater. the worst performance in a decade and the ongoing geopolitical tensions. cio tells us why she is not as bearish on tech. we will get her outlook next. this is bloomberg. ♪ on tuesday, gains in technology had size for the s&p 500. despite today's move, our next given today's rules our next guest is not as bearish on tech as some of our peers. great to have you with us. tech coming after two weeks where we saw the immense pressure, given all of the froth and access that we are seeing in the tech sector, has all of that been taken away? how healthy was this recent correction? has allot sure if it been taken away, but i think the correction was healthy, and necessary to get the speculation out of the technology names. what i think is different, and why i am not as beer it -- rs insh as my pee technology is, these companies have positive earnings momentum's an hour on the favorable side of a longer-term trends. a lot of people assume that the so-called work from home trade and these tech n

i would be remiss not to ask you about your firm, bridgewater.firm -- no secret to many people it has had a challenging year. are you confident that the firm can put all of this stuff passed it? whether it's external and internal? and most importantly to your clients return? ray: i don't have a problem with my clients because we have something like one hundred $40 billion of clients that have faith in us, otherwise they would not have us the money. we were the largest hedge fund for a particular region -- reason. it were a lot of people not knowledge -- knowledgeable about that. our weather portfolio is up a couple of percent and the pure out for fun is down about 15%. years, wehe last 20 have never had any significant downturn. nothing. we knew that there will come a day. we missed the pandemic and going down. that's the reality. i want to say that there is a problem sometimes in the media we've had a particular problem with one correspondent in the wall street journal, rob copeland. if you look at the particulars on the case that we went to in

teddy bridgewater to anderson slips a tackle by harris. that is a 75 yard play. 2-point conversion put them in front. the raiders respondent, josh jacobs goes in from six yards out. third touchdown of the game. the defense came up with a big fourth-down. they win 34-30. they open their home stadium next monday night against the saints. the ace in the middle of a grueling stretch. they will play four games in about 60 hours in three different cities. the ace wrapping up a series today against the rangers. it has been tough on oakland this weekend. the ace get a series split. they played to in seattle tomorrow then head to colorado on tuesday. despite that, oakland stays 6.5 days in front of the astros. >>> the giants back at it in san diego after clearing their covid hurdle. johnny cueto on the mound and already down to -0. the padres went on to win 6-0. after two games over 500, giants lost three in a row. the padres opened the series with la tomorrow. a ridiculously crowded leaderboard as the final round got going under smoky skies. shot himself out of the pack

they were susceptible to big plays all last year just like this one 75 yard pitch and catch from bridgewater to robby anderson panthers go up 30 to 27 after a 2 point conversion but. >>the raiders they finished jacobs with his 3rd touchdown of the day. he had a 139 total yards from scrimmage and boom the raiders beat the panthers 34 to 30. right they're great start to week one after the game. jon gruden had some high praise for his second year running back. >>i've seen a lot of running backs for a long time. the dow a little bit like walter payton used to play it was a hot as help. they get beat up early. he is not coming back, he insisted he get the ball as a runner and receiver. the a e special he some national attention hope you guys give it to him. >>that's one thing i definitely miss every day those jon gruden sound bites let's break down jacobs performance a bit more he had 25 carries for 93 yards. and of course those 3 touchdowns he also caught 4 catches for 46 yards that puts him on an early pace to top his goal of 60 plus receptions after having just 20 as a rookie. jacobs had his 4

she brings up the need to issues inside bridgewater, allegations should say, inside bridgewater and brings she is saying in her lawsuit, a sweetheart deal with the state of connecticut where he didn't have to abide by state disclosure rules and i don't know how he got that but he's close there so this is all in the lawsuit. it is fascinating, political angles here, is obviously a legal angle here, she suing for $2.5 million for defamation and wrongful termination so it's fascinating because the first announcements, is announced with great fanfare, is a huge education initiative, one of the biggest in the country targeted for low income students in connecticut and it didn't come off the ground very well, there's controversy and now there will be more controversy as the lawsuit is being trialed. neil: thank you. a new york times story, new york is apparently going to review various vaccines that are getting the attention right now citing politicization of the process. i've not read the full article but we do know is happens on the same day both madrona and pfizer said health and human servic

bridgewater takes advantage, a 75 yard touchdown pass robbie a panthers take a 30-27 lead after a two-point conversion. but the raiders come my back. josh aiken breaks the tackle, score sister touchdown of the game come that is a career-high for him, gruden looking for a stop. they made the big play when it mattered most. they when 34-30. they are 1-0 in the vegas era. >> a historic one for me, for all of our players and our entire organization. everybody got game balls. i will see if i can get hundreds to pass out to some of the season-ticket holders. like i said when i started, hopefully our fans back home saw something they liked. >>> baseball now, giants are back on the field, in san diego for er. they had a false positive. that is good news. so anxious to get back on he went to the play before, at that, when it was finished. bottom to. ray garcia, to outhit, drives and a pair. they jump out to a 2-0 lead. they match the season-high with allowed. more than enough for that man. he went out and got him at the trade deadline, he threw a to headshot at padres, they take a month six-one, gam

i would be remiss not to ask you about your firm, bridgewater.cret to many people has had a difficult year. firmou confident that the can grow through the stuff passed it and improve returns in your flagship fund? we have something like $140 billion in clients who have faith in us or they would not -- we're the largest hedge fund for a particular reason. there are people who are not knowledgeable about that. we had a bad year so far. our pure alpha leads fund is down 15%. years, we have0 never had a significant -- any significant downturn. nothing. but we knew there will come a , andwe missed the pandemic that is the reality. problemo say there is a in the media, we have had a particular problem, particularly with one correspondent with the wall street journal, and if you the at the particulars on case we went to in terms of misrepresenting what the situation is, that is an issue. that happens. we are transparent. these things come about. i'm not worried about any of that. we are operating in the same way we have always operated. we had so far a

later on bloomberg, we will hear from ray dalio, bridgewater founder and chief executive officer, at 2:30 p.m. in new york, 7:30 p.m. in london. let's get to first word news with ritika gupta. ritika: the west coast wildfires have become a campaign issue. president trump and california state officials sparred over whether climate change is contributing to the blazes. the president insists that poor management is the culprit, joe biden called him a corporate arsonist. mexico, the hurricane has now been downgraded to a category one mexico. sally will make landfall tonight or early tomorrow, but where is difficult to say. hurricane warnings extend from new orleans to the florida panhandle. there he kaine is feared to bring deadly storm surge and flooding. boris johnson's lawbreaking brexit bill has cleared its first hurdle in the house of commons. he plans to renege on part of the divorce deal. if a move has been denounced by members of his own conservative party, they warned it could damage the u.k.'s reputation. citigroup will resume job cuts. its global reduce workforce to 2000 emplo

i would be remiss not to ask you about your firm, bridgewater.secret to many people it's had a challenging, difficult year. are you confident, ray, that the firm can put all the stuff passed it, whether it's external or internal, and most importantly, improve returns in your flagship company? >> i don't have a problem with my clients, because we have something like $140 billion of , where the largest hedge fund for a particular reason. there are a lot of people who are not knowledgeable about that. we've had a bad year so far. portfolio was up a couple percent. , we'vee last 20 years never had a significant, any significant downturn, all positive years. but we knew that there will come pandemic miss the going down, and that's the reality. i want to say there's a problem sometimes in the detail. got a particular problem with one correspondent with wall street journal, and if you look at the particulars on the case that we went to in terms of misrepresenting what the situation is, that's an issue. that happens. we are transparent, these things come

this is according to the director of investment research at bridgewater associates.lly,, what social inequities. where do you see them beginning to inspect markets? karen: ultimately, policymakers intend for whatever they are doing to raise prosperity over time. for most of modern his tree, standard measures like gdp growth and unemployment were pretty good proxies for what was happening with the prosperity. it's what policymakers paid attention to. in the decade or so coming out of the financial crisis, we are seeing this significant diversion. this actually came along with rising inequality and deteriorating health measures and safety measures. as well as infrastructure, housing, just about any quality-of-life measure you could come up with. and then covid came upon us and has brought not only the worst downturn in a decade, but also one that actually is more vulnerable than most. so job losses are greater for minorities. women are more impacted by the need to take care of children who cannot go to school in person. lower income households have a bigger impact on s

she works with a guy named bob prince at bridgewater associates.eally working -- really looking forward to speaking with ms. patterson about risk parity and its challenges. i know we take a risk with jane foley at rabobank. we have a new prime minister but also an stuck in the water at 104. as many people make a big figure call for strong yen, why hasn't in moved that's why hasn't in moved and what is it signal? jane: and a lot of that move is dollar weakness at this point. i think the yen could be an interesting currency from here on in. we have a new japanese prime minister. the market is assuming that he will follow in the guidelines of abe.ay -- of the new prime minister does not have the experience in foreign policy, and this is where i think the yen and a lot of the geopolitics will be interesting over the next few months if not the next few years. tom: not to interrupt, but this is important. the intuitive feel is that if the prime minister is not up to it, the entered weekend -- should weaken, -- the yen should weaken, but that's not what h

shery: bridgewater founder and co-cio ray dalio speaking air -- speaking to erik schatzker.the latest on the trial of former nissan director greg ghosn's former aide pleads not guilty and denies his involvement in any criminal conspiracy. this is bloomberg. ♪ al conspiracy. this is bloomberg. ♪ shery: less than 20 minutes away from the open. let's get to sophie kamaruddin in hong kong for another check of the set up. sophie: looking like a quiet start with futures narrowly -- narrowly mixed. s&p lower by 2/10 of 1%. in new zealand, we are seeing the kiwi dollar under pressure after a three-day advance while kiwi stocks are adding one third of 1%. this is ahead of the pre-election update due from new zealand later today. switching of the board for some stocks to watch this wednesday, insole, neighbor is on the radar after it led an investment round. $900sel values it at over million. , nneka 229 this on reports that it is looking for exclusive talks for the lion dairy operations in australia. more potential m&a on the horizon. a pickup of that pace going into 2021. in the min

dalio and prince at -- not to talk about bridgewater, but do you suggest that if bonds are not acting normal we could find alternatives to use as derivative hedges he echo john: there are absolutely alternatives. the issue is whether those alternatives are going to behave as they traditionally have in the past. the alternatives are owning yen versus other currencies, dollar versus emerging markets, gold versus dollars. the problem is those hedges did thebehave as reflexively as bond market used to behave when the equity market decline. holding all of them to control for the fact that each of these is imperfect, the fact that they are not as reliable as the treasury market used to be means that the hedge protection available is less than it was in the past. that is problematic. it is just maybe clients should put in less risk than they might. normally they cannot insure against bad outcomes. francine: is there anything you can -- is there anything else badcan ensure against actors? is holding against high-grade credit, the other is on currency debt. central banks are behaving different

bob prince at bridgewater has talked about the duration mismatch.emic will go on a lot longer than the three month mandate fiscal authorities keep applying. we managed to offset the income shock of six months ago. do you think the nature of the slowdown changes if the appetite to acquire another fiscal band-aid is not there? jan: i do. i think there is a strong case for keeping policy on the monetary side and the fiscal side very accommodative. i am on the more optimistic side of the debate as far as the economic outlook is concerned these days, and i do think we are making significant headway. at the same time, we are clearly far away from full employment. the pandemic is not behind us, and the economy still needs a lot of support. on the monetary side, i am comforted by a global central banks willingness to continue to provide support. i think there is a strong consensus that the economy is still needed, but on the fiscal side it is a political decision, especially in a hyper politicized environment as what we have currently, given the impending e

staff at bridgewater associates, de shaw are unlikely to be back until next year.wn buildings, but hedge funds usually work in shared locations with less control over how the lobby and elevators are managed. u.s. orders for durable goods increased in august at a slower pace than expected. the commerce department says bookings for durable goods or items meant to last at least three years rose 4% from the .rior month they were restrained by declines in orders for cars and military equipment. in the western u.s., many can't find face masks to make it easier to breathe. the coronavirus pandemic decimated supply, and stores have had a hard time sourcing in 95 masks since march. fires marked the beginning of one of the worst wildfire seasons in history. that is your latest business flash. alix: thanks so much. we are going to take a look at gold, sitting right around its 100 day moving average. you get dollar strength, i one point today hit its lowest levels since late july. joining us now, scott bauer, prosper trading academies ceo. longer-term, i think it is a buy here

associates speak of the hedge und, bridgewater associates, largest in the world, hit quartered here are very much a part of this effort. and a number of other firms, and you've seen the list, that are very engaged in this work. and i anticipate more engagement and looking at financial issues and economic disparities, i'm very optimistic about the level of commitment that i'm seeing from these participants. towards bringing their intellectual and financial capital to the table, to address these issues >> shawn, wish you the best of luck in that effort. we appreciate you coming on to talk about that and much more. shawn wooden is the treasurer for the state of connecticut thank you. >> thank you, sarah. >>> after this break, never return another online clothing purchase again we're going to talk to the company 3d scanning customers to find their perfect fit that's nt "ua oth reet."sqwkn e t-mobile's new offer on iphone 11 pro is even better on our most powerful signal. switch and get two new lines of unlimited for only $90 and 2 iphone 11 pro's on us. only at t-mobile. with the icon t

there is a spectacular article out by catherine martin of bloomberg news on the underperformance of bridgewateriates. ray dalio is a class act. he will appear on bloomberg this afternoon with our erik schatzker. cannot say enough about the importance of that interview. futures advance, up 30. stay with us, this is bloomberg radio. this is bloomberg television. ♪ ♪ ♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save $400 a year on your wireless bill. plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g. ♪ jonathan: from london and new york for our audience worldwide, good morning, good morning. with 30 minutes until the opening bell, equity futures punching through 3400 on the s&p. we advance .9%. we begin with the bait issue. hostage by u.s. politics. >> the risk of the fiscal cliff. >> the if and when questions on fiscal stimulus. >> policy is front and center. >> a maximum cushion around the business cycle i

prince of bridgewater is bonds are an anchor, a dampening of volatility for sophisticated lios, and thattfoas vaporized with these low nominal yields on the 10 year. jonathan: what do you replace it with? lisa brought up the story of cash. is that the new treasury? you don't have the allocation like you used to. but it is doing well. you missed out on the risky set of the portfolio, but on a serious note, many people brought this up in the last few weeks, got we -- few weeks, that we got a test this month. the bond market really hasn't done much at all. tom: tomorrow, jobless claims. michael mckee saying it is simply still a mystery the actual unemployed in america. we will go through that data on 8:30 on friday. beneath the headline data in cleveland, kevin cirilli in .ashington -- kevin cirilli thrilled he can be with us. how does president trump spin his way forward? how does the vice president regroup after a good sleep last night? kevin: vice president joe biden is headed on a train tour of parts of ohio, as well as southwestern pennsylvania, battleground portions. that was what you sa

an article we have talked about, at bridgewater, thinking about the strategy where you bet on low volatility assets, like sovereign debt. they say it is obvious with interest rates near 0%, bonds can provide neither returns or risk reduction. what do you think about that? it is a shift in how you think about the bond market. brian: there is no question generating income is harder. the idea we could have a rally of a couple hundred basis points to protect you in risk off is silly. they can rally, no mistake, but we tend to agree that you should not chase assets. again, we do not have the same problem or momentum as the equity market, but we would agree that taking chips off the table thinking you can diversify a way by owning credit is probably not the right answer. guy: where do you make of where the dollar is? have we run out of room in the rally? other central banks are paying attention. what does that mean for fixed income? brian: if cuticular long-term view of the dollar, the fed is likely to cheapen more and other central banks do not like that. they would like inflation and weaker curr

back several months with bob prince of bridgewater, he talked about the length of the episode, the pandemica very long two, and the band-aid of three months fiscal policy makers would apply to it. the willingness of policymakers to continue to offset income diminished greatly. in the united kingdom, the approach is shifting. what is and what is not a viable job? that is going to be the discussion. what is a permanent shift in an economy, and what is temporary because of the pandemic? the policymakers are not waiting around. they are answering that question already. but what is different, is the same across this pandemic world is the sox to service sucks to-- the service industry. amobi of us is tuna cfra. how bad is it kathy: tuna -- how bad is it? the hospitality has been in the eye of the storm. this is something that no one could foresee. are as we speak, they pointing to still very difficult challenges on the potential road to recovery, that we see several hotels going about in trying to navigate this unprecedented disruption. of everything else, i think there could be those companies t

a blistering article on bridgewater -- is that the salvation for hedge funds, to go the other way and pile into tech? it raises an important question -- will growth stocks continue to lead. it feeds into the same concept of where his protection in your portfolio. typically with it about the u.s. equity market is a high-quality return on your equity market. whenolatility, especially leading, is very much centered around the u.s.. ast that is telling you is you diversify internationally, you are looking a little bit less in the u.s., and a little more upside for that balance -- more outside for that balance. lisa: when you say outside, are you looking to china? en: you have consumer demand out of the china data, but you see pretty much everywhere. we are not in the blistering fast growth we saw in may and june, but the consumer is in recovery mode. .ou see signs of the inventory cycle is amplifying that. the markets that are leveraged good will do well here. that includes emerging markets, to some extent europe. think about u.s. large-cap and a combo with europe as your portfolio, that

in oakley a 143 acres located on bridgewater road near the antioch bridge.s where they used to be a chemical plant there will be 5 buildings in this complex. it will be done in the next 4 years. and when it is finished the oakley mayor says that new amazon center is going to be a major economic engine for all contra costa county. the battle over the next coronavirus relief package continues on capitol hill. democrats are renewing calls for their multi-trillion dollar package. they say it's the only way washington dc correspondent raquel martin has more. >>we have a massive problem and that country democrats are digging their heels in deeper to get a nearly 2 trillion dollar coronavirus stimulus bill passed than 8 have only grown our small businesses are devastated. schools cannot safely reopen more than 195,000 of our fellow americans have tragically died illinois democratic congresswoman lauren underwood says for democrats there's no more room for compromise america cannot afford another day of republican inaction we came down a trillion dollars. we asked t

the chancellor rishi sunak has visited the emma bridgewater ceramics factory in stoke—on—trent to meet furloughed. he spoke to our economics editor faisal islam, who asked him about the calls that have been made to extend the furlough scheme. it's clear that the furlough scheme has worked at protecting millions of people because my jobs, has worked at protecting millions of people because myjobs, but i wouldn't be bonus with people if i pretended that it was always going to be possible for people to return to be possible for people to return to thejob to be possible for people to return to the job they have —— wouldn't be honest. i don't think the right thing to do is to endlessly extend furlough. as you can see talking to people here, people don't want to be at home. they want to be in work, and that's why our plans to forjobs are so and that's why our plans to forjobs are so important because they provide people with new opportunities going forward. but protecting people's jobs, opportunities going forward. but protecting people'sjobs, creating newjobs remains top of my mind, and i'm

we will hear from amelia in west bridgewater, massachusetts. caller: good morning. say that donald trump, in my opinion, has been the divider and chief since day one, since he came down the escalator, really, talking about immigrants. today, talking about blue states and red states. i have republican friends, and we live in the united states of america, and it is disturbing the president cannot see that we live in the united states. he supports people with guns shooting into crowds. it's disturbing. host: to california, a trump supporter. richard, hi. caller: i support donald trump. twice ind i only voted my life. i do not get involved in politics, but kamala harris -- you were talking about these people going from different she isto riot, promoting money for these people. fracking, joere biden was talking about no more fracking and a lot of democrats are talking about the unrest, it will not stop. let it be hurt. -- heard. host: connie, go ahead. caller: good morning. thanks for letting me have a moment. i used to be an independent. proudily in general was that our