considering ray dalio took to in sayingn -- linked coronavirus came at the worst possible time. is exactly what he said. we had a long tilt in our positions. the good news for dalio and bridgewater is they have a long list of people who want dalio to manage their money. now that their assets are lower they have more capacity to take on new money. they are also open to clients who currently invest with dalio .nd want to put more cash in their assets are low, but it looks likely they are going to get more investors to pump up those again. you.: thank dani thatard from ray dalio's clients have their cash waiting ready to go. what about clients you speak to? are they still willing to keep cash on the sidelines, or are they wanting you to deploy that in more risky parts of the arcade? -- of the market? be used for federal purposes. many of our clients keep some ords for everyday expenses the like. given how low interest rates are, we are looking at solutions to try and increase the return for the money which is not immediately required. there are a number of solutions in terms of mone

ray dalio warns profits could be at risk for the next 10 years. coronavirus cases continue to surgeon the u.s. in the sunbelt while latin america also sees infections climb. beijing cancels flights amid the outbreak. good morning, everyone. i'm francine lacqua in london. a couple things going on in the markets today. we will look at wirecard. we will also look at the leaders of the european union discussing what will happen with the package proposed by the commission. , european stocks are actually rising. offstors are shrugging fears of a second wave of infections that had spurred caution earlier in the week. treasuries holding onto gains. the dollar slipping. if you look at other things we is watching -- i know today also quadruple witching, which usually is the rebalancing of major indices and it can spark some of the busiest trading days of the year. we are also looking at crude oil. we will spend a bit of time hopefully talking about wirecard, simply because it has been in the news significantly. wirecard shares continuing their freefall afte

this is what ray dalio was talking about yesterday. picture conclusion i can draw from the huge amount issuance alix was talking about earlier on? if i am on equity holder, basically, buffett margins are going down. the value of that equity, therefore, should be diminished it will create a giant gap between the haves and have-nots. there will be companies who have entered into this cycle with no debt on their balance sheet. some of the equities, and maybe at the epicenter of the crisis, they literally had no debt. they will not only survive, they will gain market share. in fact, we think you may actually see profit margin expansion in some of those. the companies that have entered into the cycle being over becauseor over borrowed they wanted to do more share buybacks or dividends, they may struggle. the high-yield companies, the over levered ones will struggle. the easiest one i can point people at is, there have been numerous companies that have gotten covenant amendments. backwards to what you think cash flow production will be, it i

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 sales and through surprise indicators. from a growth perspective, the increments should support sentiment. from a policy perspective, we do that if you look at the market volatility toward the end of last week, beginning of this days of volatility. we see the fed coming in and we see the talk about additional infrastructure spending. there is a lot of desire to maintain flexibility. we don't see a huge amount of inflows, especially by institutional clients. clients that we speak to have been complaining about the market run

soybeans, but ray dalio says a reversal of u.s. could see a lost decade for stock markets. the joint debt question. eu leaders open negotiations over there 700 if the billion euro recovery fund today. france and germany push for an agreement next month. afterrd suspends its coo auditors revealed that $2.1 billion in cash has gone missing. the stock plummets as much as 7.6%. european equity market futures pointing to some upside. china is going to stick to the phase i one trade deal with the u.s. and by more agricultural products from the united states, all of that adding to risk asset appetite. that did push stock futures come up as much as 1% as we head into the european trading day. with the trading day in mind, let's see where it is taking us. the u.k. market up i 0.3%. perhaps not seeing some of the gains we might see elsewhere in terms of risk sentiment. the futures market was suggesting we would be up a little bit more strongly than that every it -- then that. see some solid gains coming through. equity futures also up this 0

in march, ray dalio said the firm got hit by the coronavirus at the worst possible moment.is looking at options for its t-mobile shares. the company is considering selling its stake there a possible private placement or public offerings. the japanese company, which has an almost 25% stake in the carrier, added there is no guarantee a final deal will be reached. the move is part of its efforts to sell about $41 billion in assets. that is your bloomberg business flash. we are getting some news out of the korean peninsula we should bring to the viewers. north korea appears to have blown up the injury in office -- office.rean more details are coming but smoke and an exploding sound -- were discovered. separate reports are suggesting north korea detonated the office, citing south korea military but north korea has threatened to abolish the office in some form so that is why that is perhaps a conclusion. the headlines in themselves, lacking clarity as they are, seem to be driving currency markets. the currency complex, according to our markets live colleagues, looking less buoyan

. -- as a tense comfortable tense couple of months for ray dalio.ge fund suffered a 15% drop in assets during march and april. that was because of heavy losses at the firm's flagship trading strategy. that is the bloomberg business flash. this is what markets are telling us. a little bit of focus on the pound after we had positive move -- positive news on the phone call between the -- commission and prime minister boris johnson. continue to rally, as we have been saying all morning, is on the back of the americans to the meal us. -- the american stimulus. gold, 1731.oking at tom: up we go. green on the screen. up 484.res s&p futures up 1.3%. 41 points on the spx. kenneth rogoff of harvard university, stay with us. this is bloomberg. senator scott of florida at noon. this is bloomberg. ♪ francine: this is "bloomberg surveilence." were talking about the world economy, also the u.s. economy with ken rogoff. we are back. i wanted to ask you, professor, about china. how is china changing because of the pandemic and what is going on in hong kong, and the

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 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

overall 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

interesting crosscurrents we are watching, covid-19 cases rising in texas and florida, the comments from ray dalio a lost decade for stocks because of profit margin compression. real estate is the single biggest decline for the broad market s&p 500. in england, we have a move by the bank of england, $100 billion in the asset purchase program. even as the bank is expanding its purchases, it is sounding a somewhat optimistic note, that the green shoots may be real here. i want to welcome win thin of brown brothers harriman. we saw sterling reaction, we saw it on the board. hadhe one hand, we continued expansion of the balance sheet. thate other hand, a sense it may be over sooner than people thought. where do you come done and the bank had to say? win: thank you for having me. i was hoping the bank would go a little bit bigger. we can all agree we are facing unprecedented situations across the world. the fed has led the way, being the most aggressive, opened the door for other banks to be as aggressive. when the announcement came out, it was about expected, sterling rallied as a result. people were

tom: to me, it is what bob prints talked about -- what bob about, and ray dalio.his massive idea of a lost decade, and the optimists pushback. they say, says who? jonathan: coming up next on this program, we will talk about the reopening of this economy in new york city. looking forward to our weekly catch up with the new york lieutenant governor kathy hochul. that is coming up next. this is bloomberg. ritika: with the first word news, i'm ritika gupta. looks like the trade deal between the u.s. and china is back on track. bloomberg has learned china plans to speed up purchases of u.s. farm goods under phase one of the agreement. the shopping list includes everything from soybeans to corn and ethanol. china's purchases fell behind due to disruptions caused by the coronavirus outbreak. more states are seeing a growing number of coronavirus infections. florida, texas, arizona, and california reported one-day records. meanwhile, californians will be required to wear masks in most situations outside the home. that is from guidelines issued by governor gavin newsom. or

because the facts change ray dalio made me feel, well, wait a second, in my 60s i'm listening to ray lio, i'm playing with fire, walking around with all this stock the guys who really got people out were the people who we consider to be the most responsible people there are the guys who kept you in would be the people who are neophytes, but you can stay too long and i think yesterday's reversal said they're staying too long >> interesting you know, another name that sort of fits into this framework is nikola, of course, now a company not troubled by any means, jim, but no revenue and a market cap that now exceeds ford and fiat chrysler, crossing the $30 billion mart inter day yesterday. >> i question nikola on twitter and my wife said, stop looking stop looking at your twitter feed people just -- they just hated me too much. when i did profile that i said, look, it's going to shoot up and then it's going to go down and the fact that i said it was going to shoot up was greeted positivity, but because i said it will cool off and go down i spent another day not on twitter. i've been on t

ray dalio believes that corporate sentiment set to rise because of the pandemic.his and all with belita ong in santa monica, california. thanks so much for joining us. that is a question of the day, who wins in a lost decade such as this? hope ray dalioy is incorrect. i know he gets many things right, but looking ahead for a decade i've fear is beyond my pay grade. but i agree that we are in a market that feels very much like a bubble. the stock market right now in the u.s. is on a completely different path than the economy and that never ends well in this stage of a v-shaped recovery, which i think is highly unlikely. when we compare this particular time in the market to 1987 or 2000, those were bubbles with valuation excesses. neither of those circumstances had an underlying economic crisis, much less the pandemic. other signs such as participation of a huge increase in individual brokerage accounts and the huge rise in daytrading. david portnoy has a huge following among people who watch sports. as you know, sports is not something you can watch on tv right now

ray dalio wrong. the wrong smart hedge fund trade has decimated people >> no, it has. jim, listen, what you just said is what you hear and i hear over and over again people who are perhaps less positive throwing their hands up and simply saying it is all about the fed. maybe it's as simple as that you just can't fight it and until that condition changes, i can't expect perhaps that much of a different market response that said, to your point, when we look at the moves, for example, simon properties. which one has a troubled business for many months ask ye and years to come. not saying it's completely hobbled, but it's not certainly going to be what it was. >> right. >> and so many others. i guess, jim, i come back and say, okay. as i'm sure you had these conversations with asset managers when, what is going to make the difference when are things going to return to some sort of sense of, well, this is really what the business is looking like as opposed to this v-shape >> i think it has to be earnings we're in a period where there is a dearth of information. that dearth

there are a lot of people on the island with ray dalio, and that's not like cbs, the aisle. >> no i understand> those guys, those rich guys scared you out, david. >> they're on pandemic island, yeah >> they're on pandemic island. >> yeah. jay powell is not on that island, no >> no, jay powell is buying bonds today. actually -- >> by the way -- you got to buy the bonds but you want to get through everything, including financing understa water which t back to retailers and how many retailers are actually paying their rent we'll talk about that when we come back. we got to head off >> we solved it in the first ten minutes. >> right if you'd gone to medical school. >> how many people died because they thought it was -- they didn't know it was swelling. >> you just scare the heck out of all of your patients. scare them into life >> i took the drug it didn't work for me but it worked for maybe 200,000 others. >> well, thankfully, you're healthy. that's what we can be thankful for. all right. we've got to take a break. we'll be back, big rally in store when we start trading 18 minutes from now a lot

i think about the twin ray dalio and bill ackman period and the idea of closing america or that america might be finished. it's -- it's off the table now the question is whether it's a vs"v" or a "u. if you say it's a "u" you might be left behind by the stock market itself. it's already well ahead of where we thought it was going to be. i wrote a script for what i was going to ask vice president pence, i ripped it up. i worked on it all night what the heck was i thinking i should have watched the nba. >> we have that press conference now. listen, you have been talking a couple weeks more positively about the market which has been leading the sense of the economic recovery and many people have been questioning it. and continue to, by the way, given today we may be inching closer and closer to being flat on the year for the s&p. it seems virtually impossible not that many weeks ago. we watched the banks turn around in a dramatic way. that seems to be continuing today. the airlines have been another feature, jim i mean, so the market knew that we were going to have a "v" or we may not i co

i'd also throw a little bit of a twist on that which is, you know, we've had ray dalio on this program years who has washed of the possibility of civil unrest in this country and what he has thought would be the economic ramifications of it >> that's right, andrew. thanks for having me on. look, the disconnect in the marketplace with the economy has been big and has gotten huge there were better reasons for it a few weeks ago, and that was the market had a win-win approach you win if you look through the short term and bet on the recovery and you win even if that doesn't happen because the fed will bail you out. what we've seen over the last few weeks and particularly the last seven days is that it is really the second win that drives the market. this notion that it doesn't matter what happens to fundamentals, it doesn't matter what happens to corporate earnings, it doesn't matter what happens to economic growth because the fed will buy what i want to buy. that's the mind set of the market right now and that's why the risk on tone continues i think it's dangerous, not just because it g