Deterioration here. We are suddenly down. 6 having gone negative a few minutes ago. Our bloomberg reporter is suggesting it is chinas response to President Trumps accusation. Safeguarding it will its interest and offer countermeasures after trump sent, a letter to congress a strategic approach. We will see if this continues throughout the afternoon. 500 isow the s p down. 6 . The Boston Scientific is down 5 . Best buy is down 5 , and many other companies. The 10year yield at 66 basis points. Dire Economic Data again today. Justollar index, it was about 99 at the beginning of todays session. Above 34 a barrel now. Higher. Long as it is lets talk about what is happening with the negative rates in the u. K. Replicated over in the United States as well. The eurozone has that experience. Tom withfrancine and the former governor of the bank of england. This was his take. I dont think it is credible to believe a longterm solution to the problems we are facing can be achieved by moving Interest Rates from plus 0. 1 to. 1 . This is not really the issue. The challenge is not the Central Banks. It is the governments. Governments. The data out of the euro zone, out of the u. K. , the pmi data could have been a lot worse. We are starting to see the delta begin to change a little bit. Maybe we are actually start to bottom out when it comes to the Economic Data. The pmis are all negative, well below 50. Maybe there are signs starting to emerge of stabilization. Mike bell is joining us from j. P. Morgan Asset Management. It is built into the market at the moment that this quarter will see the bottom in the economic cycle. The data are going to be worse this quarter thing Going Forward. Are we starting to see confirmation of that . What does that mean for asset prices . Normally once you see a bottoming in the Economic Data you can say with a fair degree of confidence you will then have a multiyear economic expansion ahead of you. The thing going on at the moment is very different to a normal scenario. What caused this recession was health related. Whether april marks the bottom and Economic Data, ultimately it comes down to whether we will successfully and sustainably be able to reopen economies without leading to an increase in infection rates. Im not sure the pmi data tells. Does not tell you whether things are getting worse at a slower pace in may is sustainable. We dont know whether that gradual reopening starting to take place in may will be sustainable. We have yet to see if it translates into the rise and infections. In infections. Luy if you believe it is stil considerable uncertainty, what do you do in terms of asset allocations . Bonds look really expensive right now. Do you buy credit . We see Central Banks buying of credit, but you have seen a significant move in credit. What do you buy if you want to stay defensive continue to take advantage of stabilization . Even if it is marginal improvement. Mike i agree with you. Government bonds look extremely expensive. That is the biggest challenge our clients face at the moment. There is huge uncertainty about the economic outlook. Therefore many people dont want to be overweight risk assets in the form of equities or credit. There could be further uncertainty as to the economy both on an economic and health perspective. If Government Bonds are expensive, realistically there is a limit to how much lower Government Bond yields can go from here. What do you own . The answer has to be being underweight Government Bonds and overweight alternative strategy that has other ways of netting out risk exposure. You look at macro strategies. Job inve done a good portfolios this year. They have managed to buffer portfolios. Toy did that by being able take directional debt and markets and not upping the equities and credit going higher. Being able to net out the exposure. The alternative strategies the defense of alternative strategies are where it makes sense to be overweight to counterbalance an underweight expensive Government Bond. Vonnie would you stay away from anything covid related, whether it is during covid or hopefully post covid sometime . If you were going to buy stuff that is exposed to covid, it needs to have any stream we strong balance sheet. I think of some of the Energy Companies. Oil prices. There are some Energy Companies with Strong EnoughBalance Sheets on the assumption this contained,e day maybe not this month or next month but some point in the next few years we can control this virus and demand the demand for fuel goes back up, if you companies, they will rise from the price in oil. They will have survived this period of lower oil prices. Perhaps that is an attractive trade. What you want to avoid is buying in the businesses, perhaps brickandmortar retailers are restaurant groups that manned up not surviving the recession if we get a second wave of infections and goes on for longer than expected. Claim futuremately profits but also future losses of a business. If those losses go on for too long, some of those businesses may not survive. Vonnie how many of the Asset Management clients are looking to go to cash, to build up cash piles . Did i think some clients that during the selloff. Raised cash levels. Now we are seeing a lot of clients who found themselves underweight, either because they raised cash or because they saw a fall in the equity position and therefore were underweight equities. Now looking not to go overweight risk assets, but thinking maybe i dont want to be underweight risk assets. Thatkes some sense to me rebalancing toward folios towards a neutral equity and credit allocation while avoiding being overweight. A quick question for me. You said at the beginning you dont think the yield can go much lower from here. Where do you sit on the negative rate debates . The u. K. At the moment is on the cusp of having negative rates. We are seeing it priced into the market. The government and the bank of england refused to rule it out. It is a live debate in the United States. Why will we not cross the rubicon and the yield cannot go significantly lower . We are seeing it priced into the market. Vonnie we seem to have lost mike. We will get an answer to that question from mike offline. Our thanks to mike bell, j. P. Morgan Asset ManagementGlobal Market strategist. This is bloomberg. Guy you are watching the european close. I am guy johnson in london with vonnie quinn. Lets look at whats happening with the markets. Taylor a little bit of a selloff after earlier gains. It looks like a mixed picture in some. Of the retaliate against ramped up pressure from the u. S. Over President Trump saying it will threaten countermeasures. Their tech is the big underperformer. There seems to be a full back into some of the safe havens. I want to look at a terminal chart. It actually looks relatively risk on. Shares of newly Public Companies are outperforming the russell 3000. This is according to the renaissance ipo index. It closed yesterday at the highest level relative to the russell 3000 going back to its inception in 2009. A few things represent the markets i guys to. Eist. Ite i want to look at the homebuilders. It looks like they are ignoring. They fell to the lowest since 2010. The surprise here is that the rate of home sales did not contract even more. On this point median home prices were up 8. 7 . He said you cant have a Great Depression if home prices are going up. Pumping up the board, its about the hope of the vaccine. Astrazeneca up 11 year to date after they just secured 1. 2 billion to help a vaccine with the university of oxford. The u. S. s backing projects underway by Johnson Johnson and moderna. The funding of operation warp speed. 300 million available as early as october. Taylor, thank you for elaborating on what is going on in the market. We are seeing quite a drop in the s p 500. Now we are down. 7 . Stay tuned. We will definitely ask our next guest about whats going on with the administration and china. We are speaking with senator mark warner of virginia. This is bloomberg. Vonnie live from new york, i am vonnie quinn. This is the european close on bloomberg markets. U. S. Jobless claims their showing thisng us to talk about and whats going on between the administration and china is senator mark warner from virginia. He has proposed the paycheck secured he acted cover wages and benefits lost by employees affected by covid19. Thank you for joining. Sen. Warner my pleasure. Vonnie a lot of people have not managed to get on employment insurance yet and its already the time to start panicking what needs to be fixed immediately . Sen. Warner i believe with 36 million americans now unemployed , literally 40 of folks that make 40,000 or less having lost their jobs, and in the american system often times when you lose your job you lose your health care as well. We have seen a spike of about 25 million additional americans losing health insurance. I think it is a moment to take a pause before we simply refill the plymouth bucket or refill the ppp unemployment bucket or refill the ppp bucket, maybe we should look at different, more efficient ways to deliver direct assistance to americans who are most in need. I will be introducing something called the paycheck security act. Sanders torom bernie doug jones and expands the breath of ideological the ideological threat of the democratic party. It is modeled more after the european model where governments have provided direct support for paychecks of workers who have been laid off. Edit 100 ne of a paycheck up to 90,000 a year. We include overhead spending as well. Mechanism would be more efficient. We havetates so far focused a lot of attention on Small Businesses and airlines. We have done nothing for the middle market. This act would go from the micro business all of you up to large firms in terms of reconnecting those furloughed workers with their employers that would reconnect them with health insurance, but allow people to be brought back quicker. When you run the numbers, if you decrease the amount of expanded unemployment and medicaid, the costs are about the same. This proposal has been endorsed by various groups. The wall street journal and the new york times. They dont agree on much. There are republican colleagues of similar proposals. We are saying lets pause. Lets think about this delivery mechanism. We use the Employee Retention tax credit and a refundable form so there is assistance set up with the irs. It may have a chance to be a new approach. Vonnie what gives you that impression . Anything with Bernie Sanderss name might not go very far. There are competing proposals, why not get on board with one of those . Warner you have to there will be a negotiation. A conservative senator from missouri has a proposal. It was a more progressive proposal introduced in the house of representatives. I think our proposal make it the sweet spot. I think there is a recognition, and you made the comment at the outset that there are still americans waiting to get there expanded unemployment checks because each state had to set up a new system. We clearly heard and read about some of the problems in the ppp program, the shortterm program. 600 billion, eight weeks. That did not do anything for middle market firms. 510 thousandperson firms who may not access it. There has been a lot left out. 5000 to 10,000person firms. The notion of direct governmental support may be more efficient and cheaper. If we look at the european friends, we have not seen on appointment number spike to where i think they will be close to 23 at the unit this month. Guy lets focus on what europe has done. Can you be a little bit more specific about what you think the european programs are doing better . There are nuances between where i am in the u. K. And germany, which has a much more established system. What is it particularly you like that is happening that can be replicated over there . Sen. Warner my understanding of is theystem germans, the austrians, the danes have more experience. The american system, we have tried to there is not the history of europe with unappointed programs. We had to direct our assistance toward Small Businesses and one industry particular, the airlines. My understanding of the european system, they have done the direct paycheck support. They bypassed the middleman. We can discuss what percentage payroll ought to be maintained, but the direct support in the whole motion of the states is so important. We have the private insurance system and reconnecting the unemployed workers back with their employer when reconnecting to the Health Care Coverage as well. That theus advantage europeans dont have to grapple with. Guy the problems we are experiencing over here is the duration of the downturn. There was an expectation that this would not last long. Certainly in the u. K. There is a growing awareness that the schemes to provide companies with money to keep workers on board they simply not sustainable. The chancellor of the exchequer is about to bring the complete coverage to an end. Companies will be expected to kick in or out 50 . How sustainable are some of these programs . If you roll it out in the states, how sustainable would it be . Would it take us through to the fall . How much longer would it be expected for the government to help these people on the payrolls Access Health care . Sen. Warner we do feel like we are at the trough of this challenge. Our program is only reconnecting those workers who are furloughed workers. If you are still a productive worker, we will not supplement your payroll. We have a twoquarter program in place that would take us basically through close to the end of the year depending on when it is enacted. There is always going to be a bit of a clip at the end of these initiatives. We will have to learn from europe and figure out here as well what do we do with those firms who may be had 100 employees before the pandemic and reemerge in the new status is only at 70 employees . What you do with those 30 workers in terms of retraining . Such astates we have mishmash of different approaches. Unemployment, medicaid, pvp, dirt ppp, virtually no support for middle market firms. We think in terms of cost and stability. If we can think a good chunk of those 26 million americans and for the next two quarters give them the security that a healthy portion of their paychecks we deliver, we think that would be a good approach. Vonnie we have to leave it there. Thank you for giving us your time today. Senator mark warner from alexandria, virginia. The selloff is getting substantially worse. It is ramping up in the rhetoric between the u. S. And china. This is bloomberg. China. This is bloomberg. Staying connected your way is easier than ever. Youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. Guy 30 seconds until the end of regular trading this thursday in europe. For about three minutes european equities were positive. Now we are quite sharply negative. Over the last 10 to 15 minutes, and i think it probably is to do with the relationship between china and the United States, which seems to be getting frost year by the moment. Equities have turned tail. We are down. 8 . The Banking Sector very much under pressure. We are trading 340 in europe. In terms of the markets, lets take a look at what we are looking at in terms of the breakdown of the ftse, the cac 40, and the dax. The thing i will mention for europe is we are treading on reasonably light volume. Markets are open, but volumes are light. In some ways, that may be accentuating the move or undermining this move. Nevertheless we are seeing it replicated in the states. It looks like a valid move is what i am saying. 6000,se is still above down. 8 . The dax is down 1. 5 . The cac 40 down 1. 2 . Preceptor point of view, a few sectors in positive territory. There are not many, but there are a few. We have the Banking Sector weighing reasonably heavy at the bottom end of the market. Tech not a huge weight in europe but increasing oil and gas, basic resources adding to the downside. The banks have been down for most of the day. The negative rate debate is something we are watching carefully. The retail sectors are both in positive territory. We will talk travel and leisure in more detail in a moment. Some of the individual stocks, a quick look at what is happening. The reasons the cac 40 may be outperforming the dax. Positive news coming through, or goodish news coming through. Im kinda put my finger on what is happening. Astrazeneca getting the big boost from the United States pushing the vaccine, and easyjet trading up 3. 82 . Cautiously details, come on when it will resume flying. More on the airlines in just a moment. Vonnie exactly. Here in the u. S. , we saw significant deterioration in the last hour or so with the rhetoric ramping up between the u. S. And china. We are off our lows, but the s p 500 is down. 9 . Lets get to the other Asset Classes and come back to the s p. The 10 year yield is 66 basis points, still in that range after yesterdays 20 year option and all of the pandemic data which is the best way to describe it. You have the dollar index up a little bit, 99. 42, probably absorbed that dire data and is moving a bit. Crude oil is helping the dollar. It is not at the highs of the session, we were above 34 a barrel but we are at 33. 59 right now. Charging into the s p 500 easy retailers are doing particularly well, which is interesting. It is a freaky friday day. Everything is reversed. L brands is the best performer in the s p 500. Bet you do not think it would be hearing me say that anytime soon you would be hearing me say that anytime soon. It is closing some of its victorias secret store and that is helping investors see the other side for brand, which is had significantly bad quarters. Norwegian cruise lines is up 8. 5 . It looks like customers are still thinking about going on cruises, maybe not immediately, but they are not looking for refunds. They are just postponing. Two of the stocks on the downside, expedia down for percent and asked by down 4 . There is travel and retail and best by down 4 . Lets continue with the travel theme. Lufthansa is close to securing a multibillion euro bailout deal, theh would make germany largest shareholder, with a 20 direct stake. It might be a little bit more. Lets talk about what this means for lufthansa and what it means for european travel. The associate director of research and managing director at citigroup joins us on the line. Mark, walk us through what we are expecting in terms of the deal to put lufthansa on a more severe on a more secure footing. What is the basic structure of this deal . Very simple. This is german banking crisis part two. This is not the simple deal you referred to. The government being the biggest shareholder in lufthansa. There will be potentially nine billion euros worth of debt associated with the company that even in a good year makes around 2 billion euros. The numbers are very large. There will be a squashing of the equity and effectively you end up with the business, once you aggregate the pension and the existing net debt of the business, the 7 billion of net debt they went into the crisis with, you end up with a total debt pile of 25 billion euros on a business that makes 2 billion euros and on a market cap of 4 billion. The numbers are seismic. The enterprise value of this business remains unchanged and all we have done is swapped equity into debt. Not good for shareholders and you can see why we think the risks are to the downside for our . 50 target price. . 50. We are trading at 812 right now. Why is the market not waking up to this . Why do we not think current pricing is correct . You have a big downside call on this. What you are saying is a publicly traded company, this is a company that does not have an equity story Going Forward, that investors are ultimately going to get washed out of this. Mark what youll see is a lot of what we saw the last crisis. We talked about the commerzbank example. I firmly believe he will see a middle easternization of European Airlines where you get Government Airlines serving government groups with pseudogovernment employees. It be hard to negotiate with your suppliers. Itll be hard to cut costs. It will be hard to negotiate with your airport, which is also government owned. Your ability to make valid economic decisions, and therefore to believe there is a lot of equity left over, that shareholders will get rich, is a fallacy. Vonnie will there be any kind of return for the German Government . Mark what is interesting is the level they are coming in accurate what has been speculated in the article is this notion of where the government is looking to buy at. It is the 256 euros per share number that comes up in the articles of association. That is where they are likely to put their 20 stake. Needless to say there potentially arguing about one euro per share. This is not going to be anywhere near the current share prices guy mentioned in terms of where the German Government will be buying. If someoneestion is believes they need to protect their downside, why doesnt the current share price . In terms of thinking about what the next stage of this is, you touched on an interesting point. I think what happens is we end up with a bundle of debt in this company that needs to be paid down. Of course, lufthansa, if you go back over the last 20 years has struggled twice or three times to make Free Cash Flow in their business. They have been a negative Free Cash Flow story and the last two decades. Therefore at some point, to pay down the debt, when Equity Investors realize the remaining Equity Investors realize that this business will not be able to pay down that debt, that is when the second bigger rights issue comes down the line. We saw that in the german banking crisis, the financial crisis, and specifically with commerzbank. Is this the first of many i do not want to call it an intervention but i guess that is what it is, and will it be an example to other governments to think about doing the same . Mark it is not the first of many. We have already had a number of these. Governments are having to make the decision of what is too big to fail. They have drawn the line at different places over the last two years. National carriers do have a ring around them. They do provide a Government Service of bringing allimportant tourism to various nations. Lets not pretend there will not be mass bankruptcies at the state level in terms of National Carrier airlines. That will more likely happen in the middle and tale of this industry where we have equities breaking even and losing money across the cycle. In terms of the next wave of this, what happens next is the melding ice cube may go towards some of the other carriers in the industry who are more borderline in terms of needing money. Ultimately what you get is a recovery and Leisure Travel first, the recovery in corporate those surviving carriers chip away at the nationalized carriers and they take market share over a three to fiveyear period. Do you think carstens for, who runs the business, sticks around, and if he does, what is the priority for him Going Forward . He has a different set of owners to answer to. How different will his job be when it is not to make money . When it is to protect routes and protect employees . How different a job could he be facing and you think he is the right man . Mark it is always difficult when youre running a business where the kpis change. In the Statement Given by the company, you can see it will be two board members, not direct politicians, but in similar veins to what we see where two representatives of the government said on the board. They will want to have their pound of flesh and their say in the direction of lufthansa. Then there will be restrictions on dividends. We have seen that before with any covid state eight references. On top of that you will also the idea of executive management pay restrictions. That ultimately may cause some churn in the business in terms of the type of individual one can higher. I think it will be difficult to manage your business in terms of government roots. This idea of serving the government in terms of the to drive thetes allimportant tourism. One of the most difficult things frankfurt the lack of population around frankfurt has struggled with the business has never existential he sold, and what will make it harder. The idea that the casual barrier frankfurt is so low they will be s,rving frankfurt only route but germany only route. To serve those and not to be able to grow in other areas, i think it will be difficult to focus on accounting profit Going Forward. This will be a business where routes come first, where employees come first, and profit will come second. Guy interesting to see if passengers come first. We have to leave it there. Mark manduca joining us from citigroup. Maybe we will see lufthansa working more closely with deutsche bank. That could be something that from an environmental point of view might make sense. A quick look at where european stocks have settled. As weve been telling you, we have seen something of a selloff , that has continued through the european close. These are the final numbers. We were down on the day. There were light volumes in certain portions of the european market, particularly on the german dax. Well carry on the coverage of the top of the hour and talk about what has been happening in the u. K. We will get you the covid briefing as well as Jonathan Ferro has been talking to the astrazeneca ceo. We will try to bring you some of that interview. That is coming up at the top of the hour. This is bloomberg. Guy from london, i am guy johnson vonnie quinn in new york. This is the european close on bloomberg markets. Lets turn our attention to what is happening in south africa. The reserve bank meeting earlier on. It has cut its benchmark rates by 50 basis points. That is the fourth time this year some people were anticipating we could see a bigger cut. The economy forecast some but now the reserve bank thinks the slump could be even deeper as a result of the coronavirus pandemic. The reserve Bank Governor curbing expectations for further aggressive easing today. We continue to move the South African rand on the upside that has been there over last few days. Obviously the rand has been pummeled over the longerterm, that is the South African rand versus the u. S. Dollar. As you can see, gaining three point 34 . . Ining us to just got 3. 34 joining us to discuss is colin coleman, senior fellow and lecturer at Yale UniversityJackson Institute for Global Affairs joining us from johannesburg. We have not talk to you in some time. Useful to get an update. Do you think the reserve bank is doing the right thing . It seems to be the only game in town when it comes to south africa. It is the reserve bank doing enough. We have seen a number of 100 basis point cuts, 50 point cut today, do you think we need to see more . Colin a pleasure to be on. South africa and the world in general are facing challenging times. The south Africa Reserve Bank is responding strongly with its normal finesse. Obviously south africa faces a contraction as they indicate around 7 . Privatesector economists around 6 . 2022 byng and 2021 or 3. 8 or 4 is there forecast. Is their forecast. The situation is one where there is very limited variables for south africa. The fiscal situation has deteriorated significantly. Deficit of fiscal. 0 and debt to gdp of 80 our overall tax net is somewhat tapped out. We do not have the fiscal power and we do not have the revenue reorganization power that a place like the United States or the developed markets have. Having said that, i think south africa has responded well to this covid pandemic crisis in the sense of a quick lockdown getting in early, and perhaps later than could have been, but getting a fiscal package in place of around 10 of gdp, which is going a long way to provide relief to businesses and individuals. But smaller Mediumsized Companies in south africa employed an awful lot of people. There is a sense that those companies do not have the kind of relief necessary to be able to carry on with employment. As a result, we will see employment skyrocket. It was already an incredibly high level. What can be done to prevent that happening. The lockdown is very severe. Companies are basically shut out at the moment. Is there anything the government can do to finetune this even more to make sure the Employment Situation does not get dramatically worse . South africa cannot afford that. Colin absolutely. The government is negotiating a relaxation of the economic levels and trying to balance the Health Effects with the effect of livelihoods. Clearly we will lose employment. In the Global Financial crisis we lost one million jobs in south africa in the context of only 60 Million People working. That is likely to be worse. We anticipate between one and 2 million jobs being lost in this crisis. Hopefully that will come back after the crisis, but there is no guarantee of that either. What the government has done is negotiated of credit guarantees anm, which effectively is arrangement negotiated between the south African Reserve bank and the National Treasury to provide effective operating costs, financing, operating costs in the lockdown. That is providing some relief to the small and mediumsized businesses that are feeling the pinch the worst. Tourism,ntertainment, the industry where the big job creator is shut down. It is extremely difficult to see how many of those businesses will survive. It is important that the Manufacturing Industrial base is not eroded. I am sure the government will end up looking at other ways of assisting those businesses, the mediumsized and the family businesses, and effectively the listed companies probably will have to go to shareholders who see rots of rights lots of rights issues would be my forecast in the next six months. Vonnie briefly, what can the rest of the world learn from south africas response to covid19 . It has more experiences in these areas than most countries. What should we learn from south africa . Colin i would say what south africa has done is provide a clear guidance on the lockdown, on social distancing, on Wearing Masks and so on and cap strong and regress communication and well. Cience very i think that is a lesson for the world. Right now, the overall picture for africa is that there is only 100,000 infections and 3000 deaths throughout africa, which is equivalent to the country the size of peru, which is the with a population of 35 million. Africa has a population of 1. 2 billion. The jury is out whether that will be sustainable over the next six months. Thatusly we are all hoping south africas track record will maintain in terms of keeping the infection rate low in the debt slope. And the deaths low. Guy thanks for your time. We appreciate it. Stay safe. Colin coleman, senior fellow and lecturer of yell University Jackson institute yale universities Jackson Institute joining us from south africa. Taylor i am taylor riggs. Time for the stock of the hour. Shares of expedia falling to the lows of the session after they saw their first revenue drop in eight years and are seeing some threats to their business from googles advertising business and airbnb. I want to look at revenue growth. Bookings were down 17. 9 billion, including a drop of 90 in the second half of march. Revenue dropped 15 to 2. 2 billion, and the loss per share was much worse than expected. As we take a look at revenue by segment, jeffries had downgraded the stocks because they felt air travel had been near zero in the second quarter. Air was one of the worst hit in the last quarter. Lodging only off 10 or so. The ceo saying some of the improvements we saw were in a company that competes with airbnb. A lot to digest. Certainly expedia not having a good day today. Vonnie absolutely. Taylor riggs, thank you for that. Coming up, u. S. House Speaker Nancy Pelosi joining balance of power with david westin on Bloomberg Television and radio. She will discuss her efforts to get the senate to take up the next virus aid bill. This is bloomberg. David from new york to our tv ready audiences worldwide, this is balance of power, where the world of politics meets a world of business. We will talk to nancy pelosi later this hour. First we want to check it on the markets and see what is going on. Abigail, at the beginning of the day it seemed like they cannot quite decide where to go. Abigail that is exactly the case. It is like the calm before the storm. Then the storm did seem to hit. It has everything to do with the escalating tensions between the u. S. And china, or markets rediscovering this tension. Major averages down. 7 . At the lows, down 1 . Earlier today, we have the tech heavy nasdaq down higher. A bearish reversal, back in the range weve been talking about. One sign it has to do with this escalation of tensions between the u. S. And china, the china