cclaget to james bevan, investment management officer. when you look at what markets are looking at, is it all about inflation, or do they still rely on earnings? james: i think there is a considerable reliance on earnings. shifte are seeing is a come expecting a v-shaped -- aift, where we were expecting v-shaped recovery to now a u shaped recovery. i expect $120 of earnings. the s&p 500 in the current year, and $150 at the end of 2021. inspecting 140 for this year and 170 for next year. if it is correct we will only see $150 in 2021 earnings, i struggle to anticipate that we will see the u.s. s&p 500 sustaining levels much above 2900 points in the current calendar year. and hence getting back to money now looks entirely appropriate. francine: what are you looking at that the market isn't he? do you worry about a second lockdown? do you worry about come in he's going bust, or do you worry about something else? -- about companies going bust, or do you worry about something else? ensco there is a material lockdown in demand, and this -- jame

let's turn to james bevan. seem -- first, welcome to the program, thank you for joining us. it does seem to be a bit of a monday. what does that 02? why does the investor looking to buy risk assets question mark james: -- assets? james: the fall to -2% is encouraging people to take extra risks, on the basis that they cannot find adequate return and fixed increase -- interest. so they are having return free risk rather than risk free return. matt: why does it make sense to buy u.s. assets right now? if i look at the wei on my bloomberg to see the moves in equities, the big drops that we have seen in europe to date are astounding. 25% is the year to date drop. 8.5%.p 500 is down it looks like investors will continue to bid up u.s. assets, why? james: if we look at prior periods where we have low real yield, we see higher valuations of good quality companies. in previous growth bubbles we have seen price-earnings move between 45% and 65 and adjusted 31 times. people would say isn't that really very low? rates,s very low cash and those marks are reasonable. we're also thinking a

coming up on the european close, i will be speaking with james bevan, ceo of ccla investment management here in berlin, welcome back to the special memorial day addition of bloomberg markets. closedd u.s. markets are on this holiday commemorating the fallen servicemen of america. let's check in and see how those indexes that are open are doing right now as they close. are showingthe cac some decent gains. , closing at around 11,350, i wanted to point out gaining,ee s&p futures and we see dow jones futures gaining as well. see we were going to have an open and the u.s., we would see this possibly carrying through into asia. let's