kailey: thank you.e on the pandemic's impact on businesses depend on universities, we have with us now bill bayless, the largest manager of housing apartments in the u.s. it is a crazy time for you, i'm sure. i was talking about my college experience. i shared a bathroom with 24 girls on my floor. how do you facilitate social distancing and safety measures in that kind of environment? bill: this is where what we and createdmpanies have products that are better adapted to managing a pandemic. when you look at our portfolio, 90% of our products are apartment style products that and above,mores residential multifamily apartments with two to four per household with their own private bathroom, where they can quarantine. so modern student housing has helped bring students back to these college towns. on campus, the universities still have about 38% or 39% of their on-campus products that are the older, traditional residence halls that you described. we think coming coming -- we think coming out of covid-19, o

kailey: that is on the u.s.e, but what about the china side at least two of these deals will require chinese approval. how are you thinking about this brewing tech war between the u.s. and china? this is not going to end even with the change in regime in the u.s.. i think you probably should be looking at two completely different things, one driven by the u.s. and one by china. this is the story that will evolve over a long. of time -- over a long period of time. it has real implications. i don't think it has material implications for the u.s. market . i think it has huge implications for china in terms of the amount of influence it attracts. has much greater implications for china and chinese markets and currency than it does for the u.s.. guy: in terms of what it means for -- is we arecture here increasingly seeing a gap between china and the united states. it will be interesting to see where europe fits into all of this. nextill inflation over the three years increase the breakdown between these two -- we con

kailey: in the u.s.seeing bank lending tighten and a time that many consumers need access to credit. are you seeing the same thing in europe? is something the european policy measures have tried to address, the ecb and cheaper lending to the banking industry have really tried to prevent those conditions tightening. it is too early to tell. we will see more over the next three months, but the early implications is clearly this is a concern. kailey: thank you so much for joining us. it is time now for a check on the bloomberg first word news. ritika: it was a record-setting month for joe biden. bloomberg has learned they will report raising more than $350 million in august, the most ever in one month. the trump campaign has not announced its numbers for august yet. a victory for the democratic party's progressive wing in massachusetts. a hotly contested senate primary. aoc.s backed by ofnedy is the first member his well-known political dynasty to lose a race in massachusetts. president trump claims thousan

kailey: how does the boe think about this thursday? they said no deal brexit would prompt them to cut rates to -50 basis points. is that a realistic possibility? vincent: i am not sure in the central bank community there is much appetite for negative interest rates these days. clearly, negative interest rates --e proven they have an effect on the currency that would not be so much a problem for the u.k. in the occurrence of a no deal --xit, but clearly maintain low financing for the economy. rates are an exercise that was warped and europe but has shown its limits. the central bank community has much more of an appetite for yield curve control instead of looking at negative rates. which have a negative side effect in the banking industry and insurance community. this is kind of emblematic of what is happening around the world. we had a conversation about central banks. we talk about the politics and that seems to be an increasingly dominant arc it theme. between now and year-end are we going to see a shift from markets focusing on the

kailey leinz is in new york.'s talk about groceries to the remain for groceries in maine strong. with people stuck at home, and restaurants operating at the minute capacity, kroger benefiting from the situation with sales rising in the last quarter. new pressure on profitability disappointed wall street. joining us now is the kroger ceo rodney mcmullen. nice to see you. thanks for taking time to join us today. i am curious as to what you are seeing -- you are in touch with the consumer. we have seen a tough year. a lot of people forced to stay at home. i am wondering what you are seen as we prepare for the autumn, fall, and into winter. what are you anticipating? case counts are climbing all around the world? . -- all around the world. rodney: i am proud of our associates and what our customers are telling us is they are learning how to cook again and they are enjoying cooking as a family. all of those things are things that we think will be trends that will happen even when we get through covid, and with our ass

kailey leinz has more. kailey: corbett stepping down after being at the helm since 2012.ane fraser will be his replacement. she is the president and ceo of the consumer bank. she was elevated to that second-in-command spot a year ago. the timing of this is a bit surprising, given that many thought michael corbat was stay on for a few years and it's unusual for a ceo to step then in the middle of a crisis such as this one. it is history making giving she is going to be the first female ceo of a major wall street bank. her resume already quite impressive. she has been at citibank since 2004 after leaving mckenzie. it's an important point to emphasize, this is about citi pushing hard into consumer, not just investment banking. their retail banking and credit card units make up about 45% of the revenue. all that said, frazier will face a bit of an uphill climb. citi has struggled to make profitability. is stock is up 43%, but that half of the gains seen by the s&p 500 financials index. we spoke to a bank analyst at wells fargo who closely followed that earlier today from bloo

here to bring us up to speed is kailey leinz. kailey: not a good direction at all.ing lots of 2% or more across all three of the major averages. that would put us on pace for the worst day since june. this is a tech underperformance story. 5.5%, the 100 is down biggest drop since june 11. leading the biggest losses. when you look beneath the surface of the equity market, it is the cyclicals holding up better. you have the energy sector higher on the day by .75% and information technology lower by 5%. it seems to be a low bit of profit taking. a lot of these names, very high flying. we have seen an incredible rally off the lows in march. the nasdaq, even with today's losses up 7% over time. tesla,he play out in which is lower for a third day. apple as well. responsible for about 15 of the 100 points the s&p 500 is down at this point. some of the stay-at-home stocks, the traits that have gotten so much traction in the pandemic number unwinding. oton eacho and pel down 9% or 10%. david: may be some of the tech names got overextended. semiconductors are in the news beca

kailey leinz has a closer look.dia is down for a second day in a row, another 6% today, putting it on pace for its worst two day cello since the depths of the bear market in march. we have to keep in mind where nvidia started this decline from. as of wednesday at a record high. through wednesday, it was up 143% this year. we have come off from that point, but the stock has still more than doubled year to date on a fundamental basis and trades at a p/e multiple at 80 times. as for the decline, it may be the launch of their new gaming chip. the last time they went through one of these product cycles at the end of 2019, it didn't go well. they had revenue declines for the two quarters afterward. there may be some concern around that. then you have the china issue. reports that china is starting a five-year program to build up its own mystic semiconductor development and production which poses a risk to nvidia, which gets a quarter of its revenue from that market. then you have the broader tech selloff. profits being ta

that is kailey leinz. toe market analysis speaking global advisors.s is bloomberg. ♪ ♪ this is bloomberg markets. i am vonnie quinn. let us get to the volatility we vixseeing above 33 for the and tech shares are down today. joining us is ben emmons. to what do you attribute the continued selloff? correcting,ficially maybe smoothing things out valuation wise? i think there is froth in the nasdaq index. a small percentage in april and almost 20% in august. a large part of the index is up in value that you are getting this correction, but you also have to look at it from an economic perspective. we are spending and the economy. points to a strengthening -- [indiscernible] markets are signal looking for a pivot towards the end of this crisis. how much is this playing into market moves? i think what played into the markets was people started and started to see a signal from it. everybody was so involved because of this extraordinary environment. that exaggerates the drawdown of gold. buying gold is a major selloff. [indiscernible] vonnie: decoupling the u.

kailey: volume is actually quite heavy, about 40% over the average for the last days.re is conviction into what we are seeing as we head into a long holiday weekend not knowing what could happen over the course of the next three days. maybe investors looking to take risk off the table, although i will see that does not apply to equities. we are seeing selling and treasuries. not a good day for 60/40 portfolios. everybody is selling. david: coming up next, we will go over the jobs numbers and what a president biden would do about it with biden-harris advisor austan goolsbee. ons is "balance of power" bloomberg television and radio. ♪ ♪ ♪ 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. david: this is "balance of power" on bloomberg television and radio. i'm david westin. bloomberg first word news,

. ♪ >> with the first word news, i am kailey leinz.ned that president donald trump is considering a step can -- with an hundred million dollars of his own money. the president had been scrutinizing handy -- heavy spending that failed to push them ahead. thus biden -- plus biden's campaign has outraged the trump campaign. president trump is threatening to curb the economic relationship with china and promising to punish american companies. the president is calling on the firm's from being banned from getting federal contracts and impose tariffs on companies that leave the u.s.. president trump said that if joe biden was elected and -- that china would "own" the u.s.. in california the electricity process has gotten worse. it is expected to cut power to prevent live wires from sparking wildfires. the problem last week was a heat wave and this week it was a high wind off the pacific ocean. kamala harris made her first solo trip as a vice presidential candidate. she went to milwaukee where she appealed to communities of colors -- of color.

kailey: they may always be heated.hat we saw tonight is really unprecedented in american politics. that clip wasn't ticket if of what the entire 90 minutes look like. these candidates stepping over the each other. president trump rarely letting biden finish a complete thought. ayden asked the president to shut up. that's a quote. he calls him a clown, a racist, the worst president america has ever had. president trump questioned bidens intelligence. he talked about allegations surrounding hunter biden. it got very messy right from the onset. as a result of that noise, it was hard to cut through all of that and get to the meat of the policy discussion that the moderator really wanted to have. anna: did we get to any policy? was there anything we could take away on specific policy? where their key messages communicated? kailey: it was few and far between. they talked about the supreme court, the trump nomination to fill ruth bader ginsburg's seat, the implications that would have for the aca. biden talked about health ca

kailey leinz has more. >> they are trading at the highest since march of this year off of those fiscal first quarter results. you have to go pretty far down the income statement to get to the good news. on the top line, revenues fell 20% in the quarter, only $1.5 billion. when you look at comparable sales, those were down 29%. analysts were only expecting a drop of 26%. that underscores the struggle for restaurants right now considering indoor dining has been slow to come back. still a lot of capacity restrictions. was downor restaurants more than 34% saturday from one year ago. darden has been faring better than its peers from a stock performance perspective. whereod news is actually they report profit, beating expectations to the bottom line. earnings-per-share coming in at $.56, more than 11 times the average analyst estimate. it really comes down to the margin. darden has reduced menu sizes, staff, and commercial marketing spending. ebitda level at 17%. there has been a lot of conversation about the lack of stimulus coming from washington, and with the expiration of that additional

that is kailey leinz with our stock of the hour, today it is oracle.till ahead, the challenges for the restaurant industry with angie mar, executive chef and owner in the village. she is coming up. this is bloomberg. ♪ vonnie: this is is bloomberg markets. i am vonnie quinn. new york city will reopen indoor dining at the end of the month with 25% capacity. but does it come near enough to help the industry? even if those restaurants are willing to open. we will ask with someone familiar, chef angie mar, owner of the beatrice in in new york city -- beatrice inn in new york city. we spoke to you toward the beginning of the pandemic. it was very difficult and uncertain. it has been several months now. there is finally a green light for some kind of indoor reopening. just tell us how you are feeling and how you have navigated the last six months. angie: it is a pleasure. the last six months have been ever-changing. the last time we spoke, i told you that i was in the midst of pivoting my business. going from a fine dining restaurant to doing solely take so

dayink they did in 18 hour yesterday, kailey leinz. combinedooking at a total of sleep in the control room of about four and a half hours. jonathan: i am pleased to say, joining us now, lisa shalett, morgan stanley cio. great to catch up with you. you are calling this a policymakers correction. what is a policymakers correction? , it hasas we know really been the policymakers' he that haveforts allowed us to rebound and by septembereven 2, hit new, fresh all-time highs on the s&p 500. but i think it also sets the bar many investors expect them to continue to follow through. september, days of it became very clear that some of the gifts we were given in march, april and may were perhaps going to be a little tougher to procure. that is really around the certainty of what policy is. we've talked about three things. wetalked about the fact that are, quite frankly, shocked that the market isn't more tumultuous given what looks like could be a delay in the c.a.r.e.s. act, but even a materially reduced and water down version -- and watered do

kailey leinz has more. >> we have seen a bit of a rollover.as up 12%, and now we see the rollover in the nasdaq. there was a lot of good news already priced into the stock. rallied more than 200% since the start of the year, investors betting that it would benefit from a stay-at-home world i'm a that would boost demand for peloton's products and subscriptions and they were largely right. in the fourth quarter, peloton has almost 1.1 million subscribers, workouts rose 330%. revenue climbed 172%. these are remarkable numbers. when it comes to the fiscal first quarter forecasts, it beat expectations, as well as the full-year forecast. the street is pretty happy, quickly reacting to the results today. as of the close on wednesday, the average target was $77. today, $106 a share. that is an increase of 37%. one analyst said the growth is extraordinary. others say that peloton is poised to continue their success after the pandemic. muchuestion is how customers they can bring over? bankrupt benefit from 24 hour fitness, other fitness companies, but w

kailey leinz has been looking into it. >> 2020 has been the year of lots of things, including the yearf what may have been, including mega cap tech stocks. but we2% at this point have to consider the role of mom and pop in all of this. because we are in the middle of the pandemic and people are at home, maybe entertaining themselves by betting on the stock market. we have evidence that proves this. if you look at the daily average trades, each reach, charles schwab, they have picked up in a large way this year, notably for schwab, the white line on the chart. when you look at it through an account linens, sites like robin hood have added 3 million accounts this year and post over 13 million active retail accounts. to 14.3schwab now up million. according to bloomberg intelligence, retail traders make up 20% of equity trading, up from 15%. we know that retail has been favoring in large part these highflying mega cap tech stocks, apple, amazon, tesla meant that we have seen rally so far this year, retailers are credited of playing a role in that, not just because they have been buying the

vonnie: kailey leinz with the stock of the hour. appreciate it. u.s.yers grappling with the issue of how to bring employees back to the office. davidphabet ceo tells rubenstein that innovation is fostered when people work together flexibility is key. have a listen. >> we look forward to having people back in the office. what we are looking at is the productivity you get as people work from home sundays and be in the office with the rest of their team. if you can save people commute time, you have better access to talent because you are solving what people want in their personal life that will result in a better outcome. what that means for real state, we are still figuring out. vonnie: catch the whole episode on the david rubenstein show at 9:00 eastern. still ahead, will the federal reserve move lower will make it that latest summary of economic projections in the next hour. just 40 minutes away. we will discuss. this is bloomberg. ♪ ♪ this is "bloomberg markets." after announcing its new framework, the fed is expected to follow through with updated g

. ♪ kailey: time for the -- ritika: time for the bloomberg business flash. some of the biggest business stories in the news. the u.s.new homes in unexpectedly advanced for a fourth month in august to the highest level in almost 14 years. record low mortgage rates continuing to entice buyers and a market with ever shrinking supply. up 4.8% to an annualized pace of one million following a 4.7% surge in july. after all of the trauma, the u.s. oil industry has been through, for production cuts to mass layoffs and a string of bankruptcies, many producers say they are still prioritizing output overproducing debt. 19 producers in the latest energy survey said keeping production flat is a primary goal over the next six months. 16% said growing output is their top priority while another 16% prioritized reducing debt. that is the latest business flash. thanks so much -- alix: thanks so much. that wraps it up for me on bloomberg markets. the dollar is rolling over. s&p highs of the session. coming up on "balance of power" with david westin, he will be speaking with the

jonathan: joining us is kailey leinz. it is tech versus everything else.

i came in this morning in the first person i saw was kailey leinz who is helping out asia with theiretation of this debate. lisa: you're making our office sound like a sweatshop. tom: david westin with the coverage and was basically incoherent after a spirited evening. lisa: he nailed it. kevin, if you're listening, you nailed it. tom: kevin cirilli nailed it. we look for the vice presidential debate in a number of days. and then october 15 they do it again. dow futures -48. ferro.up, jonathan paul sweeney and i will assist you on bloomberg radio. good morning. ♪ ♪ jonathan: from new york and london for our audience worldwide, good morning, good morning. "the countdown to the open" starts right now. equity futures recovering. down just four on the s&p 500. we begin with the big issue. fight night in cleveland. president trump: you can never have done the job we have done. biden: you should get out of your bunker and get out of the sand trap. president trump: this is not going to go well. mr. biden -- man.you shut up, trump: ukraine with a billion of dollars. mr. biden: that is not tr

attorney putting this out, then the white house and kailey mack nay knee. have you ever seen this?ink the really key point here is to put an eye on the big picture. there is six million ballots in a state race like this and nine -- i don't want any voter to be treated wrongfully or to be disenfranchised because every voter should have the right to vote. but how do we tell whether an election has served its purpose, it is whether collectively the result is the genuine choice that the voters as a whole want. and so every election has some blemishes or flaws. you like to reduce it to zero. so there is a lot about this particular incident that we still don't know. and a lot of questions to be asked. but i think what we know so far means that we should still be focussed on the main question, which is does this affect the integrity of the election as a whole? >> that's very well put, professor. that was really, really illuminating. i'm looking forward to having you back again. thank you. >> thank you. >>> still ahead, we're now learning more about the lasting damage the coronavirus can d