that will be an important recapitulation of what you and i nowin davos with him, and evermore so, wea dampened economy that bob prince talked about. jonathan: the end of boom and bust as we know it, a man who made a lot of headlines in davos , switzerland. feels like a lifetime ago now. i am not sure this is the end of boom and bust that he expected. i thing maybe this outcome is a little bit different. tom: we will have to see. you've got to bring up cash's trash. the mail is coming already. you've got to get the bridgewater view will not right now. jonathan: 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 gupt

remember the president's interview with joe kernen at davos.there is some sense that there are factions that are being put to work here amazon being split up is not a new concept. to the extent that there are anticompetitive pressure out there and has been for a long time and amazon has run for a long time not for profit let's be clear they were running for scale and fulfillment and logistics and erp and pushing people out of business >> so i can see both sides i love it as a consumer and i think there's a lot of reason to be frustrated by amazon and feels like there needs to be a little bit of a push out there >> guy >> it's very interesting i'm glad tim brought up that davos interview. i encourage people to go back and listen specifically to what the president said about elon musk and tesla because you can draw your own conclusions, but factually, the stock has done nothing, but gone up since and elon musk is talking and tweeting right now like he has air cover. maybe he does. he's doing things now that lead me to believe he feels he's imperv

a second term in davos the president himself said he's going to cut social security and medicare. the largest cut in medicare. i'd say it on this show. >> there's advice for joe biden from rahm emanuel. sara fagen, how about some advice for president trump and republicans from you. where he's falling short right now, a huge threat, suburban white women who have just abandoned the president. >> well, i agree with what governor christie said. but i'd a third thing that complements for republicans, we need to keep seniors and suburban women as you pointed out, which is to not only draw -- to lead on coronavirus and race relations and all the things that the president needs to step forward on, but also to remind them what they're getting with joe biden. joe biden is not the leader of the democratic party right now, bernie sanders and elizabeth warren are. he put congresswoman ocasio-cortez in charge of his climate policy, these are not things that seniors want to see in america. they may be unhappy with donald trump at the moment but they don't want a green new deal. they don't want m

just before the coronavirus pandemic struck, greta spoke at davos, the meeting of global and political is still on fire. you're in action is fuelling the flames by the hour. you're inaction is fuelling the flames by the hour. and we are telling you to act as if you loved your children above all else. thank you. isn't there a danger that people would listen to you and say, well, all hope is lost, i may as well continue my lifestyle, because there is nothing i can do to make the kind of changes on the kind of scale that greta thunberg says is necessary? there is no point where everything is beyond saving, because there are degrees of how bad it can get. no matter where we are, no matter how dark the situation must look like, it may look like, we must never allow ourselves to give up, because we can always prevent it from getting worse. that is what we need to be doing. and the situation, it is not dark. there is hope. we can change, and these changes do not have to be a bad thing. in a sense, doesn't coronavirus provide us with hope about the ability of people to change, because so many

it is a year and a half pretty much since you went to davos and rather famously lectured a whole bunchxation and the rich paying much more in terms of tax to genuinely redistribute wealth in society. not much has really changed since then. perhaps you think that the crisis and the emergency that surrounds us with coronavirus may be the trigger for some fundamental change that was not on cards before. is that the way you see things? yes, absolutely and i think that actually quite a bit has changed. the window of political possibility has really been moving. people could say, oh, but corbyn lost the election, and sanders lost the election — yes — or the primaries — that is absolutely true and it would be nice if progressives sometime get their act together and win an election for once, i mean, that would be nice. but then, if you look at the kind of ideas that are increasing in power — look atjoe biden‘s tax plan, for example. it is twice as radical as hillary clinton's tax plan of 2016. if you look at his climate plan, it is actually more radical than bernie sanders‘ climate plan of 201

the great reset of 2021 this is obviously an elite gathering that happens annually every january and davos is that moving the needle even further should this meeting be held elsewhere. the only problem with this is that every the changes that we make fundamentally are going to have to come from the bottom up i don't think you can change things from the top you don't change things with your president or your governor you have to change things at the state at the level where people are actually feeling this this shift this change with the police officer for example look i've said this before it's it's as simple as this if you want to take every police department in america starting tomorrow and take every cop and say 2 days a week we're taking away your badge and your gun and we're going to assign you to a playground or a school or a craft area or whatever and we're going to give you a coach's had a whistle or we're going to give you an opportunity to help young men grow and learn about life or we're going to let you do arts and crafts with young small kids or women let you be a counselor it

what we do is we set an event every year at the world economic forum at davos where we set up an arctic risk. greta thunberg and her father came to camp with us in 2019. it was very cold. she went into the world economic forum to tell them her message of global risk. what do you feel about this particular moment? wejust heard from her about how she feels in some ways the lockdown and the black lives matter movement, that both of those things have re—energised or possibly can re—energised or possibly can re—energise the climate movement. would you agree? yes, i think it's really clear. the first thing is that the world and governments around the world and the public have woken up to the idea that systemic risk really is a threat and can happen, and that science has an important role to play with regards to what those risks are, and how to deal with them appropriately. i agree with her on that perspective that we must unite behind the science. but on top of that, we can see with things like black lives matter, certainly the power of protest, but also the idea that there are a lot of thing

later today, love talking to her in davos. stacy cunningham later today. stay with us.is bloomberg. ♪ >> bloomberg surveillance. let's get to the first word news. the coronavirus pandemic is racing through the u.s. heartland setting records for hospitalization and forcing businesses to rethink their plans to reopen. florida and texas each hit records for new daily cases yesterday. the virusl predicts will kill 180,000 americans by october. joe biden will not officially accept the nomination in front of thousands of screaming delegates. the party has told delegates to stay home from the national convention in milwaukee this summer. they will conduct their official business remotely because of pandemic. biden will still make an acceptance speech but the audience will be much smaller. california voters will decide on affirmative action in november. they will vote whether to reverse a ban on race and gender preferences. one of eight states to outlaw affirmative action. and his business partner have launched media empire spring hill company with a $100 million investment. he

a good friend from davos.rnment service to the united kingdom, he now works for ubs as a special and senior advisor. wonderful to have you with us. you and i went back and forth on this weekend -- went back and forth this weekend. in a book, -- talks about the courage to go ever greater in negative interest rates. is the united kingdom going to do teensy wayne see -- teensy weensy negative rates? huw: great to join you. i loved the book but i fear that it may not be the right solution to the problems which confront the country. therefore i think the odds of negative rates being introduced are a long way off. we have debated before, the policy is at best weekend andily contested -- weak heavily contested. what concerns me is what does it mean for the financial system, both here or if it spreads to the states or new zealand where it is being debated. it requires real courage to change the regulations for the system to become less fertile and is there the real political cover to make those changes? whilek the the

>> i want to get into sustainability theme very mixed signals the environment was front and center davos was the major theme for managers and coronavirus protecting workers now it feels as though managers are still paying attention to the threat maybe they don't want to be caught out like they had been for the pandemic >> this is one of those megatrends that have been accelerated. what we call real resilience exactly the point you are making we are in a different world than we were. it has been accelerated and it has been pushed at us through the covid-19 crisis. investors are concerned about real resilience. how do you push in the safety in the ford folio and the safeties for the offset of the a&p 500 that's not the simple answer anymore. it really centers around sustainability which gets that really giving the portfolio resilience, whether it is climate change or responses to both of those things in our mind, sustainability plays itself through portfolios through the real resilience. >> asking you about the rise down the track coming back to what central banks do but the concern of deb

he has a really important survey moving on from a survey in davos on trust and the urgency of how, thegaining trust in these tumultuous times. richard edelman next. this is "bloomberg." ♪ >> i have not heard a true official apology to colin kaepernick on what he was going through and what he was trying to tell the nfl and the world about why he was kneeling when he was doing that as a san francisco 49ers. i see that to still be wrong. now they are listening some, but i still think we have not heard that official apology to a man who basically sacrificed everything for the better of this world. james on the trials and tribulations of the united states of america in this tumultuous summer and so much of that relationship between the former quarterback of the san francisco 49ers, his nfl and mr. james is about trust. there is an expert on trust. his name is richard edelman and he is deployed the resources of his public relations firm and staff of digital researchers to trying to measure, trying to gauge trust right now. richard, i've got to rip up the script. what is so important here is

the idea of what we heard at davos, the dampening, the slow down, a lassitude to the global economy, 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 other countries, the fed is not going to be going negative with rates, certainly no time soon judging from everything we have heard. doing so would be painful the financial system, would be painful to banks and for households. households are no

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.

ago,ems like a millennium and we sat in davos and talked about this very issue, and the glimmer in our is the worry about this virus we were hearing about from china. here we are today. when people went to equity ties, there is no question that the easiest way to equity ties was very much focused on the u.s. market. i think if you look long-term, amongi see -- what i see large global investors is converting that into a more active style as they start to decide where they think the true resilience in global economies are, whether it is diversifying away concentration they had in the u.s. in the initial stage of putting some money to work in equities when they saw attractive levels, or whether it was thinking about what the real outcomes are in a long-term perspective of how this pandemic changes behaviors, changes the needs of consumers, and changes things like the way we work or the way health care is provided. those are the long-term trends of demand -- that demand active management. francine: good morning from london. before we come back to longer term trends, what will it take for t

that i clearly haven't figured out but i said couple weeks ago and will say again, the interview from davos really said something in retrospect, elon musk feel it's he has tremendous air cover and the stock has acted in kind and so it's very difficult to bet against this. i have no idea how expensive the options are but every time you mbemba bet against is wrong. so bet against is wrong so path of least resistance >> dan >> not sure it plays well for chinese auto sales you know, to me, this one makes no sense i'm with guy i know you think we're bunch of dummies but things don't have to make sense and you don't have to buy either because this is probably one of the dumbest stories i've seen in my 25 years in stock market. >> let's make it easy, show of hands, pass on tesla, not going to touch it. show of hands if you think tesla is not worth it. keep them up all four of you guys who thinks tesla is a pass down $300 okay >> we go down $300 you pass. >> yes >> oh, so you don't even know. >> i'll play your reindeer game. >> my arm's going to get tired. >> okay. rest rest your arms jeff and tim.

and investing that it's just too hard to do good he's been talking about es fwchlt he has come to davos about it in the last few years he launched this separate fund he just wasn't able to do that alongside the value act hedge fund >> he said the two are die met rickly opposed this idea that, you know, you have these investors that are serving as lps in your specific funds. on one hand they're concerned that, you know, one fund isn't maximizing returns because it's impact investing on the other hand, you have a fund that is seeking to maximize returns and investors are questioning whether those returns are being sought after by complying with all sorts of esg environmental social governance standards he said that, you know, having the two things under one umbrella was essentially problematic. he sought out to achieve that in the new fund >> the slight issue i think with all of this certainly the comments in the article right now and the way they're framed is the way he is suggesting it is either/or one level it's a little bit rich you take the moral high ground today after a couple deca

coming to you live from the world economic forum in davos, switzerland. ♪ ♪ maria: wow, gorgeous. maria: happy halloween, everybody. we are doing the big business of halloween and not just for people, you know. ♪ >> look at that. ♪ maria: one of the famous gloves worn by the king, michael jackson. this has never been on the auction glass, is that right? >> that's right, there's been a lot of gloves in auction but this one was in storage unit that no one knew about and it was over a decade and a half. ♪ [cheers and applause] maria: today is a very special day for me. one year since i brought dusty home into my life. ♪ dagen: you not only have a giant brain, maria bartiromo, for business and everything else and one with huge heart. i love seeing you with dusty. again, a couple of -- i would say the hallmarks of what you've done here are your coverage and identified the russia collusion hoax and also china and our relationship with china and what has really been going on, leading up to the pandemic. maria: yeah. i have been so honored to sit next to you every day for 25 years, dagen.

that's the thing, if you go back to our conversations at davos over the years and even the last timee were together which seems forever ago, the conversation about companies need to serve their stakeholders, all the stakeholders and deliver both the profits for the shareholders, experience for the customers, experience for the teammates and community. you have to deliver for society at large and we run the company to deliver for our core stakeholders and society at large and this is part of that it's very consistent with how we run the company. we've talked about it across the years, and so they are coming at us saying let's put our money with our mouth is and the team design a program we think will have a meaningful impact not enough money we need more money from a lot of people but it's a meaningful change and the trajectory of what we're doing and help with jobs training and skills and small businesses and housing >> brian, thank you for your time and thank you for your leadership on this we really appreciate talking to you today. >> thank you, becky, and thank you for continuing