We will talk about in a next hour as well. We will be speaking about juneteenth and what companies should be doing to improve diversity and inclusion with vivian hunt from mckinsey. A big event here in the u. S. , lots of events participating in that in the holiday. We will break that down and what it means for renting for u. S. Companies as well. This could be the Third Largest none december exploration on record for Macro Risk Advisors founder. She will be joining us. We also have all this volatility into the squad winching dust into the cour quadruple winching. How does this play out . One of the trends we have seen in Options Market over the last several years that has is that folksated are vying incredibly short dated options, the shortest, as short as one day. Leaderboard is that it expires in one day. It is a unique way of trading. I would not say it is gambling, but it is not exactly investing either. A lot of the stuff rolling off was put on as late as this week. When we looked at the set up in general, what do we see . We see a vix still at 30. I find it really fascinating given where the s p is. It is exactly where it was six months ago. Almost 23 times where it was six months ago, a 5 out of the money put in the s p cost six times what it cost back in december, even though the s p was at the same level. We have this big push and pull between the policy and fred response, then this giant hole of demand. Between the policy and fed response and then this giant hole of demand. Hard to see the economy return in anything close to full speed. What youre left with is how much of the policy response on an ongoing basis is going to offset what is clearly a loss in demand . How will Companies Hold up in terms of profitability . That helps explain why the vix remains elevated even if the s p is only a couple percent down on the year in 2020. Guy you have covered a lot of ground there. Can i backup to the beginning of what you said, which was the shortterm nature of a lot of the call buying in particular. There has been a lot written about the nature of the robin hood rally, driven by retail. How different is this market in terms of its structure and in terms of those participating, from how you would normally see the setup . Dean it is difficult to disentangle all these things. We follow the robin hood, the hertz story is a real head scratcher. There seems to be signs of frost when you look at footcall ratios, for example. There has been a tremendous sponsorship of upside calls in markets. When you break it down, you see that the activity in these upside calls tends to be more correlated with some of the names for which retail is enthusiastic, the Robin Hood Type names. It suggests there is a new element to the market. About narrative. Folks have looked at the stimulus checks and perhaps forbearance on things like mortgage payments and said, is this money coming into the stock market . It is a head scratch or to some extent. Difficult to know because the reality is the fed has done so much, they have done much more than they did even during the entire financial crisis. And the government so far has done a pretty strong job of pushing money out the door to help people. What is interesting in the past few hours, you have golden cross and s p up. Worthless. S kind of can you walk me through what happens for options dealers as contracts roll off and how that may exacerbate price swings which have been distorted by Retail Investors . Dean often times, the overlay of options themselves in the marketplace has impact, because the hedging of these options is a constant work in progress, a moving target. We really saw that accelerate during the march crisis, where the short positions but dealers had and put options clients had bought, very much catalyzed the accelerant to the move down. You are short of put in the market moves down aggressively against you, you actually have to sell more features to get yourself hedged again on a delta basis. That tends to really matter when volatility on a realized basis is very high. Utside of last thursday, we are not seeing that as much. The market is up about 1 . Pretty well behaved. Again, last thursday was an incredible day, down 6 , but outside of that, we are not seeing a lot. I see a lot of this paper rolling off without a lot of implications. I have started to see people look at the july 4 holiday, we are doing ourselve some work ous and asking, as the market tend to get quieter in the week or 10 days before july 4, assuming there is nothing happening going into it . The answer is probably yes. You start to see folks worrying about the time decay of Holding Options over a holiday like july 4. There is actually opportunities potentially to bid on a lower vix the next couple of weeks. Guy ok. Vix. Are short the how long does that environment last four . Ean ice guy how long does that environment last. Degreet depends on the to which folks become concerned again about the virus. Followingcourse states like arizona, florida and texas that it doesnt look good. But it may be the case, and i know that mnuchin made this comment a week or so ago, he said, we are not shutting it down again. It may be something we have to live with. The question i think really is corporate profits. Day, equityf the markets are impacted by a lot of factors. Corporate profits ultimately matter the most. There was clearly a big giant free pass in q2 because we were in no mans land. I think the question about the ability for corporate to generate profits in the new world of, even if you got back to 90 of capacity, what exactly does that mean, where are the winners and losers, what does it mean other aggregate level for s p . I think that will drive markets and volatility. Guy dalio making that kind of point earlier on, his point is Companies Gear up, particularly the ones that are more stressed, the ability to make profit becomes less and less. Dean curnutt, Macro Risk Advisors, joining us on the quadruple winching today. What are we going to do about next . We will talk more about positioning. This time, talking about what is happening when it comes to the hedge funds, particularly the qantas, they have been highly stressed by what is happening particularly the quants. They have been highly stressed by what is happening. That is next. This is bloomberg. Ext. This is bloomberg. Alix happy friday, everybody. I am alix steel in new york, joined by guy johnson in london. We like to look at the flows are to move in the etf world. Abigail doolittle will break that down for us. Abigail hello there. Lets look at the risk rally out of the march 23 low. It is extraordinary. The s p 500 is up 40 . If we look at the flows relative to etfs, not surprisingly, the biggest amount of flows, 19 billion going into voo, vanguard very low cost s p 500 etf. Billion,by lqz, 15 the Corporate Credit etf. Then, the gold etf. Then at the bottom, qqq, still a lot of money going into that tech etf, 13. 1 billion. Lots of money is going into these etfs. Why . Probably the fed, all of that liquidity. If you look at the flows into credit eds this year in may, the most ever on track going over seven years credit etfs. I was just mentioning the fed. One of our favorite charts into the number terminal, what we are looking at in blue is the s p 500. In white, mw, global money supply. As the fed and other global feds have become comfortable with liquidity in the wake of the pandemic, we see the m2 skyrocketing and the s p 500 once again falling. It will be interesting to watch as always. Guy certainly will be. One of the messages i have got from the trading desks is it you see liquidity and Central Banks doing that, purchase equities. Pretty straightforward. Abigail, thank you so much. Incredible credit issue once and amazing flows. Obviously, we are talking about the robin hood rally. That will be a feature of the quadruple witching today. Mark connors is joining us now to talk about what is happening. Great to see you, thanks for joining us today. We have spent a lot of time talking about this robin hood rally, the antithesis of bad is that some hedge funds have been caught flatfooted. What i am wondering from you is, how are they managing risk . These look like pretty treacherous markets. Are they being too cautious . Whenever the fed or liquidity,k opens up you just jump in, or you reset. That is certainly the case. If there is no distinguishing meant, in fact, the names that have higher beta or are riskier usually run more. That has been the case the last couple of weeks. How are hedge funds positioned . Hedge funds still remain core in longs, names that will be able to handle a low growth environment because of their scale. They are largecap and can handle ratios. Year to date, the top five names of the s p account for over 500 of the gains. Since march 23, under the covers, there has been volatility in value. Value in smaller and midcap names, those are names hedge funds tend to be short because over the long run into the full cycle, these value names will experience pain. That is a set up. But we can go into returns and performance if you like as well, because we cant really say all hedge funds are hurting. You see this truly daunting group of hedge funds still logged mid to high singledigit returns year to date. We can get into the details if you want. Alix yes, because we had ray dalio with bridgewater yesterday saying that it is a lost decade for stocks. Than you had someone else say that i was a little too conservative and i should have been more aggressive. There is a narrative that retails investors could end up being a selffulfilling prophecy, because the amount of trades they put on our small but there is a lot of them. Is that a real narrative . Mark the real narrative is that, again, the timeframe. Certainly, hedge funds recently have underperformed in june. 4 ,ay, they were up capturing more than half of the upside in the longshort portfolios. Quant funds were up 1. 5 . May was a good month. June, not so much. We have a cross market contagion indicator, fancy word for we look at 20 etfs globally across every asset, and we are able to divine out of the 21, which two etfs are driving the whole basket. Etf,ne, it was the value the russell 1000 value. And it was treasuries. So, if treasuries rose up value rallied,. That was june. It created a tremendous Short Covering rally, we cant speak to retail, as well as things like retail engagement as well. Guy that certainly seems to be the narrative. , the quant model is probably well set up for this. How quickly where they adjusted, how effectively were they adjusted . Have they been fully adjusted to take account of what is going on . Mark if you talk to, i will not say all, but many quants say, i dont adjust my model, i created it, and in the long run, i will extract alpha. But to answer your question, adjusting the models that are more tactical, they have been the models that performed better. If you look at shorter acting tactical, they are up more than modelsium and longer run because of the odd market we have been in, where there has been more Central Bank Intervention and, shorter acting models have been able to behave in a more advantageous manner. So they are not adjusting it. But in their sort of spectrum of funds they have come the shorter acting have certainly done better. Alix so how does that set us up particularlyhalf, on u. S. China trade, for example. E. U. In u. S. Tensions seem to be exploding here. And we have the u. S. Elections. What factors will do well for hedge funds . Mark it is a great point, the fed has tempted down all liquidity concerns and pushed it out, buying single asset credit. That is behind us. Is question is, obviously, the market going to go higher . What is the catalyst. I would say, if you look regionally, the dispersion indices, look at the hong kong versusi versus the sxp, the s p, the u. S. Market has experienced undue volatility, almost as if it has been the u. S. Versus the rest of the world from a volatility standpoint. Whether it be the rates collapse in march, or the volatility spike in factors. It was written about yesterday or the day before, the spike in correlation across all factors. It was all about the u. S. In terms of elections, there will be unique regional volatility and opportunities based on elections, for sure. We have seen it where the risk will go from region to region. In theow the risk is u. S. , less so in europe and asia, believe it or not. And it might be because of the elections0 mark, all is great catchup with you, such great insights. We will get you back. Mark connors, great to see you. Coming up, we will break down wirecard,s missing billions forcing the ceo to step down for just really ugly. This is bloomberg. This is bloomberg markets. I am ritika gupta with a first word news. President trump is not giving up on ending daca, the program that shields 750,000 young undocumented immigrants from deportation. Theweeted that administration will be submitting new arguments to the Supreme Court shortly. Justices said the government failed to consider the hardship recipients. Today, european leaders are opening debate on an 814 billion economic recovery program. Germany and france what the deal wrapped up by next month. It would be financed by joint debt issuance, seen as a significant step towards recovery. Not every country wants their taxpayers on the hook for spending by other countries. 1963,e First Time SinceBritish Government that rose in may above 100 of gdp. Int reflects a big drop economic output and is surge in spending to counter the effects of the pandemic. Borrowingovernments increased more than 124 billion over two months. Plunged. , tax revenues trade deals between the u. S. And china are back on track. Bloomberg learned that 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. Purchases fell behind due to receptions caused by the coronavirus outbreak. Global news, 24 hours a day, on air and quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am ritika gupta. This is bloomberg. Alix thank you so much. One of the stories guy and i are watching today is wirecard, a Digital Payment company. The Company Issued a statement. The ceo resigned today. I read their statement as, we are running out of money, but we are talking to our banks to see if we can deal with our credit line. But yes, we are freaking out a bit. Guy yes, there was also this point yesterday that caught a lot of people. We were talking about it on use of this program. The Company Warns that there was circa 2 billion in loans. Audit was not published that could be terminated if the audit was not published today. The european equities market closes, what is the deadline for that and what does that look like for monday morning . It will be a really tricky weekend for this business. The ceo is gone, chief Investment Officer i is coming in, only just been appointed by the board. Alix if you cant find the money, how do you restore confidence . Take a look at their bonds. One of them is trading at 28 yield. I had to look at the chart four times to make sure i was reading that right. When did talk about insolvency here . Guy i think that will be a risk. I guess that is why the conversation is going on with the lenders. Two banks out of asia earlier on confirming they did not have the company is a client. That was where the money was meant to be. Then you put the loan on top of that, the company doesnt have the liquidity necessary it needs. I dont know what happened. The ceo of 20 years just reported. And there doesnt seem to be in a clarity. I would emerging anybody lending i would imagine anybody lending this Company Money would want transparency. We will see. Next, we will do wirecard a lot in the next hour, i promise you. Next, what is happening in the credit market. We are heading for a lot of issuance this year. That is next. This is bloomberg. You say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. Alix from new york, im alix steel, joined by guy johnson in london. The amount is companies around the world are raising in the bond market. Year,ate note sales this 1. 9 trillion the most for any similar period in recent years. What do you do with that . Lets talk to somebody in the market, johcm senior fund manager, Lale Topcuoglu. Central banks continue to pump equity into the system. Corporations are issuing debt and yields are at record lows. Now, what . You highlighted everything, what do you need me for . [laughter] alix ok, goodbye. See you [laughter] lale i think it turns into an entirely a sellers market. If you look at the new issue premiums in the investmentgrade market and even to a degree in highyield, for a company that is having challenges, there is a huge demand on it. It is almost this whole central k push created [indiscernible] so one of the things you can actually see, you look at the cdx loans on the synthetic lines, in both highyield and ig , it is at an alltime high. People want to join the fed bandwagon. The only way you can do it if you cant source paper is you go to the synthetics. The difference between a bbb bond and a bb bond at the moment . I am beginning to struggle with that one. Lale [laughs] not all bbb bonds are the same and not all bb bonds are the same. When people look at averages, there are bbb companies on the path to be done. That pushes the average is up. The bbs are interesting. If you want to hide out in the higherquality, you are certainly not going to get paid for that. What you do is you step a little bit outside your comfort zone and go to the bbs. Financials, the leverage metrics between inequality bbb and equality bb is vastly different. You are talking at least two times the leverage and a significant difference in the ability to generate Free Cash Flow so you can delever and pay the debt back. That gets overlooked because right now, chairman powell uses this analogy, the fed is an elephant stomping over everybody else tried to do fundamental analysis. Said but he specifically he didnt want to be an elephant running to the credit market. So as an investor, what do you do . How do you not by the Overleveraged Companies that have Free Cash Flow because you need to participate in the rally, then . Lale that is the momentum trade. The reason you buy the over lever companies is either you think we are back to a vshaped recovery, or you think anybody can get financing. Your colleague has written extensively about it, there is a lot of restructuring happening. A lot of debt swaps that are happening. A lot of priming transactions where more senior debt is coming ahead of you. Remember, covenants are loose, or nonexistent. There is a lot of things happening in the market. The way we have thought about it is, the fed bandwagon, purchased the highquality companies, but than getting paid zero on treasuries. But the other thing you do is you buy preferreds or banks capital, where we think, given the liquidity and the companys Balance Sheets you still earn something but you are not stretched. Guy we are clearly in a weird world. You have just kind of run through, some real anomalies at the moment. What is clear is that a bunch of companies will become super leveraged. Conclusiony logical from that is that Profit Margins will suffer. This is what ray dalio was talking about yesterday. The big 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 havenots. 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 highyield 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 implies a full turn of leveraging,ng re if not multiple turns of rea leveraging on the balance sheet. You will have problems down the road. It is all about kicking down the canada bit further down the road. People are not focused it is all about kicking the can down the road. People are not focused on it. Alix the fed is not going to let anything fail. They made that clear. The lost decade that ray dalio is talking about might get pushed off decade after decade it is possible. I am a Firm Believer that i dont think you can detract Economic Growth trajectory out of Financial Assets valuations. They need to connect one way or another. So, i have sympathy for his argument, but i am not on that page. Just continuing the theme how much of the money being raised right now is good money . How much of the money is for companies in the first bucket you described, companies that are doing well and as a result will benefit from this . How much of the money being raised currently is effectively going into companies that will just need super low rates to survive, and we kind of talk about them as zombie companies, is it possible to determine that at this point . Lale it is possible. I dont have the numbers for you. Part of the reason why you have seen in investment grade, is that investmentgrade companies under normal circumstances, always have access to the market. On like a highyield company the notion of turning out that a couple of years before, they never get shut out of the market. That is why when the market shutdown, now we have a massive issuance in investment grade, even a aa or singlea company now has a bunch of 2020 or 2021 maturities. They have to clear it out. Good money. On the highyield side, it is different. You have companies turning out that. Increasingly, you have Companies Really struggling during the travel or lodging industry or energy. They really need capital to kick the can further down the road. Alternatively, they are raising capital with that flops. There are numerous examples of this, including movie theaters or retail, where they are actually taking advantage of the market with lower market price securities and basically hosing the investors a little bit because they are pushing with debt swaps. Guy on that note, we will leave it. Interesting point, Lale Topcuoglu of johcm capital. Thank you very much, indeed. Juneteenth,t is which commemorates the effective end of slavery in the united states. We look at the role our places of work have in the push for equality. Vivian hunt from mckinsey will be joining us next. This is bloomberg. Alix live from new york, i am alix steel, with guy johnson in london. Retail,ompanies across finance and other industries are commemorating juneteenth, the day that marks the effective end of slavery in the united states. We bring in scarlet fu. 1865, is the 19, day that connell granger delivered the news in texas, the last state in the confederacy to get word that the civil war had ended. It became a nationwide celebration in the 20th century. This year with the black lives matter movement, it has regained dominance. Corporate america is taking notice. Target, jcpenney, nike, twitter, even the nfl have made it a paid holiday. Jp morgan is having a shorter holiday hour as well. This these are all customer facing companies. Paid holidays are not exactly a huge compromise considering the hard work of fixing institutional racism and discrimination. Companies are paying more attention as well. There is a great story, where Raphael Bostic, the first black fed president in history talks about his experience with racial profiling. He told Steve Matthews that the power dynamic in society can be exposed in ways you dont think you have to worry about. He called on policy makers to take more action to address inequality. Inequality joins up shows up in the latest jobs report. Even though the markets hand the jobs report for showing improvement, black unemployment rose while white unemployment declined. Not in the direction you want to see it moving when it comes to certain segments of the population. Fed chief jay powell also talked about how Central Banks should consider minorities and women, blacks, latinos, asians, when setting policy. You can see that when you look at wage growth. We have a chart showing the average Weekly Earnings of blacks relative to whites. It only started to rise in late 2018, the late stage of economic expansion. That is likely moving backwards now given the latest reports, and what we have seen during the pandemic, how africanamericans were disappointment we hit by the lockdowns. Both Raphael Bostic and chairman powell say the federa can only do so much, that is congresss jo. Congress needs to do more to turn diversity into actual economic inclusion, alix. Alix thanks a lot, wonderful setups, scarlet fu, bloomberg senior markets editor. For more on Corporate Diversity initiatives, we are joined by dame vivian hunt from mckinsey. Great to have you here. That was the nice micro set up on her economic level. But you talk to companies all the time. Its nice to have the rhetoric. What are some tangible Actions Companies are doing right now that actually matter . Dame hunt you look at the evidence based in or recent reports which scarlet referred to in her commentary, a fiveyear report of companies in 15 countries looking at the impact of gender diversity and ethnic and cultural diversity, it is clearly a positive correlation. We see that companies that perform well are all more diverse on representation, all more diverse in terms of skill sets, and they also proactively manage their workforce with more inclusive practices. Every single one of them in every sector and every country. We are pretty convinced of the correlation with stronger performance and stronger diversity. We also see similar correlations when we look at holistic purpose, so taking into account, Covid Recovery for your companys execution plan, more perfect initiatives that impact the community or your supply chain, or your employees, those companies also have higher performance. So the evidence is strong that it does make a big difference. That said, Many Companies dont yet do it. Only one third of the companies in no a data set have made significant progress in the last five years. Two thirds of them still have a long way to go. Even just in representation numbers, never mind some of the supporting efforts, like acknowledging juneteenth day, more Flexible Working practices, or, indeed, antibias and inclusion training. The good thing is that what companies can do concretely is pretty clear in hiring, retention, leadership appointments and inclusive culture. The companies that have done that have seen better results. Guy how do companies that have a history, or a historical problem, dame vivienne, deal with it . A number of u. K. Companies over the last 24, 48 hours have put out statement lloyds of london is one, companies that slavery. Story with i am wondering how you would advise these companies to deal with that legacy, and what the correct posture should be, what the correct communication should be, and whether or not ultimately this could affect their ability to higherquality candidates going down the road as well. How do they manage that history . Dame hunt first is the confidence that the initiatives on inclusion and diversity are not only the right things to do from an ethical or personal perspective, but that it actually impact your business process. That is why the work we are doing at Mckinsey Global institute, the Block Economic institute we are setting up their, so that companies are leaders can look at both the economic and also the social and other factors that matter. The ceos and leaders have to be courageous. You have to look at the history of your company in full. Some of those parks may not always be that some of those mays some of those parts not always be favorable. We live in a different time. Some of the companies who were investing in the triangle trade, obviously, it was ethically wrong and human rights abuse. Today is different. I would encourage, one, awareness. And transparency on your own history. We cant be afraid of our history, we certainly cannot change it. Being upfront with your employees. Engagement and awareness is a first step. Secondly, concrete initiatives where you are engaging with black and other historically disadvantaged groups in any way. Way. In a new for example, a statement at the Business Leaders roundtable, or the Canadian Council of Business Leaders, or here in the u. K. , the cbi Industry Association have made our steps of progress we have seen. It is a significant gearshift so that companies can see that history, and be accurate and up it but also now take steps to change their hiring and change their appointment process, change to better modern outcomes. Employees are requiring that. Customers and supply chains require that. But also, given the vulnerability of some of these groups, from the covid response, those vulnerable populations, whether it is held or economic vulnerability, need extra better. N to build back companies have an opportunity to really change the narrative, change their actions, and also change their outcomes. They need to be quite concrete in how they do. Alix just wondering how long that those policies for companies last. Now in this social moment, i can see that taking a lot of steam. But as you have to rebrand and put more money into hiring or mentoring or searches for certain executives, it will take time and money if they have to chains, it supply will take also time and money. How will they look at that, the tradeoff between actual profit versus longerterm vision and rhetoric . Dame hunt our traders are just it is not a tradeoff. If you look at the impact of technology as well as the covid impact on black lives and livelihoods in the u. S. , or mobile work on diversity, it suggests it is not a tradeoff. It is about making investments with the aperture of how it impacts those global populations, either in your employee base, customer base, or your supply chain. Making decisions like diversifying your supply chain, having an active set of diverse suppliers. That is not a tradeoff on efficiency, is about working with them to find the right suppliers. Companies, one third of whom in our data set have made progress in the last five years, do those concrete initiatives where the dollars and cents add up in addition to increased inclusion practices. It is not a tradeoff between one of the other. Vivian, i look at what is happening with gender equality and the efforts being made there, or the lack of efforts being made there. Website, all male boards have set back the diversity effort. Something we have been plugging away for for quite some time and making surprisingly little effort. What should i take away from what has happened with gender equality and apply it to Race Diversity . Bold t first, with without bold commitment from Senior Leadership bought in by companies and also endorsed by industry and data, you will not make progress. You have to recognize the problem and commit to make progress. Leadership like a 30 club have started the journey. Secondly, you have specific interventions on hiring, leadership appointments, and inclusive culture. Those are the three biggest interventions a company can make to really affect the diversity and inclusion within their companies. You could also see much more Community Engagements as Many Companies are doing as they look at how to recover from covid. But the companies that have invested in those initiatives linked them to their performance, of actually performed better. Others that have not done that have not moved. It is very interesting when you look at the fiveyear data set. Five years in terms of an Economic Cycle is not that long. It is an achievable goal in a withinble period of time the left him of a ceo or executive team. Secondly, the companies who have the mind to make progress have done so. Measurement helps, if i am honest with you. I really believe that the companies who set the actions and measure them are the ones in our data set who have made the most progress. Is it as much progress as it should be . Of course, not. In gender terms, we should be at parity in every industry, company, and country around the world. It takes time to compensate if there are other adjustments that limit women or black and ethnic minority colleagues from progressing educational differences, differences in support and mentorship, social differences. We have seen those laid bare. You have to factor those in as we build back better. The companies have done that both on Economic Development as well as relative performance have performed better. Guy you cant measure it, you cant manage it. Thanks, dame vivian hunt, thank you very much indeed. Managing partner for the u. K. And ireland at mckinsey. This is bloomberg. Rg. Alix breaking news, you have florida cases for covid up about 4. 4 . Higher to know whether that is comparing in terms of hospitalizations. Feels like the narrative is quadruple witching happening in the markets today. Guy yes, the big stories continues to be what is alix. Ing with wirecard, we continue to monitor it into the close. 30 minutes away now from the european close. We are going to rejoin with our guest. He had a really good setup for us yesterday. We will get an update from him next. This is bloomberg. Neil alix live from new york, this is the european close on bloomberg markets. We are losing some steam. We have florida cases at 4. 4 . We are losing a little bit of steam here. Guy if you look at the traders almanac today is not historically a good day for equities. It has to do with what we have been talking about so much. I guess these other factors are rationing out pressure. You can see if you look at the function on your bloomberg when it comes to european stocks, the volume that we have seen throughout the day as we have seen some of these coming through. The effect that it has on markets. Nevertheless, the s p 500 is still positive as is the stoxx 600. There 30 minutes away from the close. Anticipated, the governor hinting at more to come