Nevertheless, the dollar weakness theme is there. And the german tenyear yield. We are seeing a bid on the bond market. It kind of keeps determining what you want to do next in terms of so many of those asset classes. It is friday. And one of the critical things happening is that sports is back. Being on lockdown without sports was really hard. [laughter] but tonight the english rugby season[laughter] , the premiership restarts. We will talk to the ceo of harlequins. With us if youed have ever seen directly and you want to get a flavor for what it watch this player play rugby and you will get an understanding of just how big a sport it is. Anyway, we will get a sense of where the premiership is going. We will talk to what of the Sports Betting companies. Who we speak to now is david kelly, j. P. Morgan Asset Management. The market has taken a few hits this week. It is trying to. Push higher with equities but failed. What do you make of that . David it is probably too high to start with. We have very easy liquidity. It makes it hard to go into the bond market. The most important sectors of the u. S. Stock market basically on the upside of the earnings season, but there is an awful lot of uncertainty. We shouldnt be knocking on the door of an alltime record high even the uncertainty. I think the market is ripe for april but anyway. Alix what happens if inflation moves higher . David kaplan said he would be ok with a 2. 75 . You look at the 10 year break even, it is higher. What if it is real and sustainable . David it is a dangerous game we are playing here because over the course of a pandemic we ramped up u. S. Federal debt tremendously. About 77 percent of gdp as a debt to gdp ratio year ago to about 108 gdp this time next year. That is an enormous a lot of debt. Interest rates are very low. But if inflation and longterm Interest Rates start to go up, that will put real pressure on the federal budget. There is a real issue there and i think we should take confession seriously. Want the economy i think we should take inflation seriously. Wants the economy starts to recover, we will have to have the discipline to deal with the deficit. Guy what do i buy . A lot of people say you buy gold when you are word about the inflation. I struggle with that, i wonder if there are other assets that are better if you believe in the inflationary environment that is coming towards you . David there probably are. Gold has changed its starts over the years. It used to be great as inflation protection, but then it rallied in a deflationary environment. I think residential real estate. Make sure you on your own house, if you want to invest a little more or by some real estate, i think that is fine. I think also commodities will help. If you have inflation in the u. S. , you will probably have a falling dollar, and a falling dollar will push up commodity prices. Infrastructure real asset you can get into. Value stocks more than Growth Stocks. If value stocks are about here and now, Growth Stocks are about the hereafter. Rising Interest Rates should Growth Stocks more than value stocks. Alix i guess its always up depending on how you see it right now. The data we are getting and where we are at for the rebound or a recovery. I am guessing with a recovery, that trade would make sense. If it is just a rebound, though, is growth still your best bet . David it will take a while to play out. At the moment we are seeing a reinterrupted recovery. A sharp bounce in april, good retail Sales Numbers this morning, but if you look at the highfrequency data, the economy is slowing down again. If we dont get another stimulus bill passed, it will slow down a lot. Im talking about what will happen after a distribution of a vaccine, after a full economic recovery sometime after 2021. Maybe you stay with the growth train for a little bit here while we deal with the pandemic. I am just saying that after the pandemic is over, but is when i would expect a little more inflation and valley to and value to sign relative to growth. Shine and value to relative to growth. Guy i have no idea how the vaccine will be distributed, no idea the economic advantage it will potentially accrue to the economy. How am i pricing that in to my portfolio . David i think there is a regional experts to this. What a vaccine really is is leverage. Have a vaccine that , still, 70 effective if you have backend you vaccinate the whole population, the probability of people who have both been vaccinated of spreading the disease goes down dramatically. Then you have to implement social distancing, maskwearing, contact tracing, and you could gradually across the disease. Meanwhile, most people who are vaccinated will have less severe symptoms going forward. So if you have a population and entirely vaccinated, even with a 70 effective vaccine, you can still go back to normal. I think that will happen during 2021, more in east asia to start, then in europe, then in the United States. So you can look at that sequence invest. Of how to alix it was really interesting what bank of america said, if you look at the vaccine as a performance enhancer rather than a game changer first of all, it seems like you agree, in which case, how much boost we end up getting on gdp, even in asia, where it is going to hit first . David first of all, it reduces uncertainty. I think it will help asia release staff out the virus. The problem is really snuff out the virus. The problem is if you have a rebound in south korea, it may start going down again. It makes it easier to deal with flareups. It still means that 2021 will be a better year perhaps for east asia than the United States in terms of getting back to normal. You still have to take a longterm view thereafter. When other thing that is important is the longer you are in economic misery, the longer you have to ramp up the Budget Office it to protect people, so the u. S. Will end up not only with more people dying from the disease, but also spending a huge amount more money trying to support people while the pandemic rages. Guy it sounds like you are advising people to invest money out of the United States rather than inside. How does that take account the huge position to have got in tech . Both. You can have a lot of people are overweight the u. S. Right now. I am not saying realize a huge amount of Capital Gains off the bat, but if you have money you can move to increase international exposure, i think that is fine. Most be as investors have far more than half of their equity u. S. In the u. S. Most investors have far more than half of their equity money in the u. S. When you look at relative valuations, if you believe that tech deserves higher multiples, than u. S. Multiples should be somewhat higher than overseas, but the gallup between u. S. Multiples and overseas multiples we between the gap u. S. Multiples and overseas multiples is too big. I think you as investors should recognize that. Alix david kelly of j. P. Morgan Asset Management you will be sticking with us. Next, we will hear more from our interview with jimmy lai. He says the future of hong kong following his arrest under the andNational Security law, what it means if you are looking to diversify your investment in china. This is bloomberg. Alix live from new york, im alix steel. With me from new york is guy london. This is the european close. Arrest thisys his week actually took him by surprise, but he has been overwhelmed by the outpouring of support. He also says the National Security law has already had an effect. Jimmy it is very negative to the Business Community here and overseas but i think they want also to send a message to the beenkong people who have rebelling in demonstrations and all that, to show that, yes the will be security law low profile in its execution. Keythey have to solve the of enacting it to show to the hong kong people that anytime we enact it, make sure you behave well. Actually, the law has a very intimidating effect on the hong kong people already. Michael chinese officials talked about this sort of being a threat to make sure that independentminded activists stay in line. How have you changed your activities in the month and a half or so since the implementation of the law . And what does that say to the ty thate retrospectivi is not supposedly allowed under the National Security law . But is not necessarily in the letter of the law support to build it is not necessary in the letter of the law that they are supposed to build cases based on your actions of the past. Here to be honest, people , a lot of them are intimidated. Democratic people have left or are leaving. Are stepping from the movement. I think they have a very effective. We saw from the National Security law. Peopledoesnt mean that who stare, like myself, will not continue to resist. Come out like myself, will not continue to resist. But we still have to be cautious. I dont think the Resistance Movement will just die out. From the emotion of the city since my arrest, i can see that people are very angry. People are very persistent in their will to keep our rule of law and freedom. Even myself, to answer your i will have to be more cautious. I have to do what i have been doing but with a more cautious attitude, because this is going to be a long fight. Guy jimmy lai talking to arrest. G after his the democracy activist and founder of next digital. Bloomberg taking a longerterm look at beijings National Security law and how it is a sickly changing the Political Landscape in hong kong. Part two of our series, hong kong on edge is on this weekend on bloomberg television. Make sure you check it out, this is important for investors. David is still with us. It is an important investment theme. As an investor, do i have to put politics to one side . A lot of people are concerned about the increasing tension between beijing and washington, yet the chinese economy is enormous and growing. Can i be underinvested in it . David everybody has to make their personal decision about how important their political views are in terms of what investments they make, that is a personal decision. In the long term, we have to recognize that our descendents will look back at the 21st century, and say that one of the great themes was the competition between china and the west in economics, and also in terms of ideas. What we would like to see is a strategic cohabitation by which china a road toward more openness, more free speech and more democracy in exchange for access to the one markets. We are not moving in that direction right now. That is regrettable. I hope in the long run we can do that. As an investor, you have to make that decision. When it comes to dealing with the coronavirus, if you look at china as all as places like taiwan, south korea and japan, they have done better than europe and the United States in dealing with this. The chinese economy is very big and will grow. So with investors, there is money to be made. Whether you invest there depends on other issues other than just investment returns. Alix how does that apply to big tech in the u. S. . We had a report out yesterday from bloomberg saying there was a survey done that said, if wechat was banned from iphones, do you ditch the phone or wechat . About 90 said they would ditch iphones. For a company like apple, how do you deal with it . David what we need to do is recognize a broader question is how do you feel about our tech sector and immigration and engagement with the rest of the world . The United States has an enormous Natural Advantage if we would just embrace it of attracting the smartest Technology Experts in the world and some of the brightest students all over the world. That, if we try to build technology at home by being open with the world, getting away from trade wars, we can be very successful. If we play this titfortat game of trade wars, particularly when it is political rather than strategic i have no problem with a strategic approach toward china. I do have a problem with a titfortat tariff war. That is just negative for everybody. I hope we will again adopt a Strategic Policy toward china, a relationship with china that allows our technology to grow over time. Guy i hear the argument again and again that u. S. Bank stocks and the u. S. Tech sector can grow in any environment and as a result of which you have to be invested. Add extrast rates, fuel to the fire. These are companies that can make money in any environment. Can they make money in an environment where chinese tech is in one sphere and u. S. Tech is in once fear and they are banned from operating and u. S. Tech is in another sphere and they are banned from operating in each others spheres . David i dont think that is a dominant issue. I get that but if you look at our relationship with china overall, we have a very we hadnt relationship a very different relationship under george w. Bush and barack obama. We will see where we are after the election in regards to the longterm business relationship with china. When it comes to particularly the biggest stocks in the u. S. , the s p 500, a lot of which are tech stocks, it is not a matter of whether they can make money. Multiples, at the can they grow those earnings fast enough to justify those multiples relative to the other Stocks Available . There is a legitimate question as to whether the most expensive stock, of the market are overpriced relative to the rest of the market, or relative to overseas markets, even if there is earnings growth. Alix david, all is good to catch up with you. Thank you very much. Happy friday. This is bloomberg. It is time for the Bloomberg Business flash, a look at the biggest stories in the news now. The ceo of incredible help says there is a practical reason for companies to build diverse stocks. We talked with the ceo on bloombergs studio, black leadership matters. There is a concept called diversity death similar to technical death in that it is faster and easier to build a homogenous team, but he will pay for it later because when you want to hire the star black engineer, they are not going to join on allwhite team. Starting early is critical. The rebound in u. S. Retail sales slowed sharply last month after an 8. 4 gain june. That indicates a surge in coronavirus cases and high unemployment is holding back the economic recovery. Mercedesbenz will pay 2. 2 billion to settle diesel emissions issues in the u. S. , but it could have been worse. It cooperated with american regulators in their investigation. Volkswagen officials lied to e. P. A. Regulators for admitting violations. The violations costed more than 35 billion. That is your Bloomberg Business flash. Guy thank you very much. This is really fascinating, it feels like a story from yesteryear but it was not that long ago. It also speaks to the idea that these european carmakers are going through such a massive transition. A few years ago, we were talking about them cheating on the missions standards. Missions e standards, fats like a existential crisis. That triggered a shift in standards, in consumer behavior, and accelerated the process toward diversification. They are having to play catchup and the cash flow is going into the regulators pockets rather than the researchers pockets. It will make it harder to win the battle. Alix it is so expensive to do this whether you are looking at electric vehicles. They have to pair up with how to do it. What i find fascinating is the idea that it will be over now for them, the money and then we can move on i dont know if that is 100 true. In the annual report, german vehicle regulators said there could be more vehicles equipped with these devices. I wonder at what point can they really put this behind them. Guy i think that probably is kind of why shareholders are acting cautiously. Usually these overhangs generate a positive response. Once you put them to bed, you can move on and focus on what the future looks like. You are not getting the share price reaction today. Daimlerchrysler in some ways is outperforming the market, but you are certainly not seeing a bounce on the back of this. The challenge for this sector is absolutely enormous. But it is interesting as well but you could also see a reaction from the covid crisis, with people getting to cars and not wanting to go on public transport. Alix 100 , i am driving everywhere. Guy and if you are going to do that, you cant have the impact on the environment, you have to get an electric vehicle. The european story today is dominated i airline stocks. They have really taken a hit. We will show you the numbers at the moment. The Bloomberg Markets the european close is coming up. This is bloomberg. S is bloomberg. Guy it is friday at 4 30. European stocks are about to close for the week. Lets look at the data we have and then we will talk about the week that was. The stoxx 600 in negative territory. Light volume, it is august. Nevertheless, it turbulent day driven largely by the travel stocks. The u. K. Extending quarantine restrictions to a number of other countries including france, travel stocks taking it pretty hard. We will hear from scarlet fu with the details in a moment. That is the session. It has been an incredibly bumpy week for stocks particularly in the United States. We have faded as the week has gone on. We were potentially hitting fresh record highs over in the United States, europe as well, then we started to see yields back up again. That has taken the steam out of the stock market story and we have faded. We are still up 1. 3 on the week, so not a bad performance. August, as i say, driven largely by light volume. Lets look at how individual markets performed around europe. The ftses underperformance is down to the pound, not entirely convinced by that, i think travel stocks are in the mix. The cac trading down a similar 100. T to the ftse the dax outperforming but still down by. 7 . We were talking about what was happening with daimlerchrysler. Lets do a breakdown in give you an idea of what has been going on on the bloomberg function, grr from the sector point of view. Every single sector is in positive secretary. The car sector has outperformed. The bottom end of the market is dominated by the travel sector. Lets get the details about what has been happening within that. Sector with scarlet fu scarlet good afternoon. Beis johnson warned he would absolutely ruthless in imposing new rules to keep covid cases from rising at home in the u. K. His government added france, the netherlands, and malta to the list of quarantined countries. Effective saturday at 4 a. M. Local time, everyone traveling from those countries to the u. K. Will have to self isolate for 14 days once they arrive. This comes as the number of covid19 cases rises in france, across europe and in parts of the u. K. As well. The usual suspects are losing ground. Airlines including British Airways or ryan air are saying that customers can change their travel base but they are not offering refunds for the changes. In travel group will probably be called upon to help people scramble for lastminute tickets. France is a popular destination for travel from the u. K. And vice versa because of proximity. No surprise that this stock is declining along with air france. Nd hotels for investors, summer 2020 looks like it right off. The question is what happens in the next 12 months. The verdict for markets is not good. Travel stocks have recouped some of their losses in august, but they remain one of the worst performing sectors are yeartodate along with banks and energy companies, so it will be a long summer winter. Alix what did he say, guy basically like me not being able to new jersey you will not be able to go to paris . Guy not quite the same, is it . [laughter] alix bloomberg scarlet fu, thank you, very much. 213company is raising million in its ipo. They have priced it at 16 a share. Some indications are that it could open at 50. Revac is developing a vaccine. Joining us is the ceo, granzwernerhaas. You priced it at the high end of the range, your stock could open at 50. Did you live money on the table or were you surprised at demand . Granz we priced it at demand. We thought it was an appropriate price and there should be room for improvement. Guy nevertheless, you could be opening at 50. You have raised circa 200 million. You could have raised 600 million. You could have used that money potentially to drive the company further forward. I am curious as to what the conversations you are having with your advisors. They were telling you 16 looks like a reasonable price, yet here we are on friday, 50 could be the opening price. That is a pretty big spread. Granz your absolutely right. We didnt know this yesterday, of course. I think what we have, we reevaluated what we happen what i think we are in very good shape. Alix we are obviously still waiting for the stock to trade. There were reports that you are in talks with potential partners on producing a vaccine. Can you give us the details . Granz of course. A few weeks ago we signed a major agreement a platform agreement with glaxosmithkline one of the world leading Infectious Disease companies to develop electric vaccines but also protective antibodies to vaccinesrophylactic but also protective antibodies. That is pretty broad. With thehat we are company. Guy you are in phase one. You are going to brief the markets in a little while about how the phase one trial is going. Messenger rna is not something that has been done before. Can you give us an update on the progress you are making . Is it going well . Lets start there. Granz mrna has been in the clinics for a while. It has different indications in oncology and also in vaccines. We have been working on vaccines since 2011. We started the first Clinical Trial in 2015. What we see here in the covid19 vaccine candidate that we are all, weng is, first of had to do clinical studies to find the best candidate to go with. Low dosage vaccine. We are waiting to see the optimal dosage to be defined somewhere in the end of september and beginning of october. It looks pretty safe. It should generate virus mutilating to get protection. Alix curevac is now indicated to open at 35. 45. We will keep you updated as we go. It takes a lot of money to make these vaccines. Talk to me about the relationship with the German Government. Who is buying the vaccine already . How much money will you need to develop it and how will you disperse it . How do you think about a profit in that sense . Granz to start with the investment to put into the accelerator. Due to the pandemic outbreak, unsolicited development of the vaccine accelerated the vaccine cost quite a bit of money. You have to go international to go where the virus is. Then you have to recruit thousands of human subjects to be vaccinated. All of this costs a lot of money. Governmentst is the who are at the end of the day your customers. You see this with other Pharma Companies as well, signing demand purchase agreements advance purchase agreements to secure dosages. Into curevac by the German Government is an Equity Investment to develop other things. The oncologyg in also in the protein therapy space, and on top of that, upscaling manufacturing, because this is what you need when you are working on a protective vaccine. You should be in position to have a broad availability, which means manufacturing. Then you come to the point of distribute and allocate. Guy dr. Haas, how do you think about what is happening now . Is it a race to be first . Does that matter . He spoke to the russian producer of a vaccine earlier this week. The russians certainly seem to have decided that it is a race and you need to be first. Doesnt matter being fast . Is it a race . There you think people will pay more for a more effective vaccine . Granz it is definitely a race a race not that much against the competition of other vaccine producers out there, it is always a gust of the virus, aires a guest time it is a race against the virus and a guest time. Here. Fast is key you need to be safe and efficacious with this vaccine. But to be the first on the market does not mean your cap market. Ng the entire you have to have a vaccine available, that is one thing. The other thing is you need to have a protective vaccine. As it is on the virus, nobody knows what kind of level of protection you need to generate. You need to be protected on the one side, and how long you need to be protected. Therefore, we have been optimizing our rna to come from a low dosage. Therefore, there are plenty of vaccine players. Hopefully, plenty of those will do it. At the end of the day, we will see which works best. It is all depending on data. Guy it looks like it is going to be quite the open when we finally do get the price coming through as alix said, at the moment, indicated at 35. 45 after pricing at 16. Thank you very much for your time today. We look forward to hearing more, the ceo of curevac. Lets look at where european stocks have settled. We are heading into the break. A negative day, delivered largely on the back of disappointing news from the travel sector. We will carry on that conversation and analyze what the european trading week is looking like at the top of the hour on dab digital radio. Jonathan ferro in new york, i will be joining him here in london. This is bloomberg. Back. Ill come you are watching the european close. The european close is pretty negative today. We saw some pretty bad numbers from the travel sector. Lets talk about the weekend, though. Guy johnson is live from london, alix steel over in new york. Break, theemonth Premiership Rugby season kicks off again today with harlequins taking on another team in front of empty stands. Nothing has compared to the blow delivered by the pandemic, with pay cuts across the board. Joining us is the harlequins ceo, laurie dalrymple. Thank you for taking time to join us ahead of the big game today. How big of a challenge hasnt been to get the club back to this point . Lori good evening. Good evening. It has been a big challenge. Obviously, we were five months. Paused. At the start, we had to shut it down. Circa 45 elite athletes that we had to try it that had to stay home. We had an obligation and a duty of care to keep their fitness levels to the standards that would get them back as quickly as possible, which can be difficult particularly when have got 130 kilo athletes that dont have that sort of weight or equipment at home that can keep them to the levels they need to be operating at. So it has been difficult. It has been the not knowing in one sense, not having the visibility on when things will be immature we start. To become fully honest with you, those nuances and complexities with the fi physicality and the level of contact, it makes us probably one of the hardest sports if not the hardest sports to get back into competition. It has been long. It feels like it has been a long road to get to this point. We have been committed, excellent members of our team have worked around the clock to get the boys back in physical condition, not just in this club, but all clubs to be fair. With theorked association to get the sport back. Guy how different is the game going to be . Obviously, as you say, it is a contact game. The sport has had to think about that. Broadly, a sport is not being played in front of live crowds. How different is it going to be and when do you expect things to get back to normal . Laurie it will be really different. Example, from a financing and funding perspective, we are in the entertainment space and both teams thrive off the connection and connectivity you have with the individuals within the stadium. So it will take some adjustment from both sets of players. Obviously, we are on the home side tonight. It will be different when. We run out. But we have been trading in the stadium periodically to get used to it. The boys have been watching a lot of national football, and we have had visibility on how the sport responded. I guess it is just one of the that they will have to psychologically to put themselves in the best space to compete. It will be probably the teams and the individuals that manage the absence and the extra challenge the best, they will probably be the ones that come through successfully. But we have got a hugely connected set of fans at the club. We will miss them terribly tonight. But the focus of the team does not diminish. They are there to do a job, they are ready to do a job and they look forward to it. Alix a serious question here. In asia when sports have opened, they have put dolls in the stand, fans faces. You can buy a seat and put your face up there. Are you guys going to do stuff like that . Laurie it is slightly different for us in the sense that we are hoping we have committed in partnership with all of our other term your ship clubs from your ship clubs premier fans backwant to get into arenas as soon as is safely possible. So we have not quite gone to that degree, whereas other sports previously have had a long time, in long downtime. So that investment would probably be considered more prudent. What we have done is we have got several banners around our grounds that are both a reflection of the sport from our key sponsors and investors, and thank you to them, and him banner where we have named all of our ticketholders and members named on the banner. We have given them. A specific note of thanks to all of them. Because it is a terribly testing time as a consuming fan. You want to remain connected with your club. You want to be on the ground supporting everybody and it is difficult to do that, so we hope they will watch us on tv. Thankfully, our league managed to negotiate a positive partnership with our main broadcast partner that everyone can have access to all of our games. Without everyone in the crowd. We thought this is the best gesture that could happen. Guy we are a business channel. You in some ways are in business in many ways. How is it how has it been financially. You talk about the tv rights, about people turning up or not being it will turn up at the stoop. How has it changed your outlook and your financial position in terms of being it would to develop the club from here . Laurie that is a really good hasion, and it definitely provided us with a significant challenge. It is often easy to look at disassociatemost and say it is the mechanics of running a business. But really we are a business like any other. We have revenue and cash inflow and we havent outflow. As you can imagine. Are driven by minimum standards and compliance a lot of our costs are driven by minimum standards and compliance and they did not diminish even though Revenue Streams were not coming in. It was a challenge even before the pandemic struck and we were working hard to find ways to commercialize our club in our business going forward. Honest, that is one of the other frustrations, because we clearly identified what we wanted to achieve in the next 13 years as a club, how we needed to do that. And that has been paused because we havent had our sport. So that obviously starts tonight ways. Y but that is still going to take a huge amount of time to reengage and reestablish. In the here and now, it is a huge challenge. We havent been able to, on the most part most of our revenuegenerating activity has been paused for five months. In any sector, that is meant to provide a great degree of challenge. The physical pressure and the fragility of the club, and the business is amplified significantly in the past few months and will continue to do not able toare operate. Gets timeout that we supporters back in and friends back in consuming our sport and fans back in and consuming our sport. Our supporters are the lifeblood of how we operate our business. It will definitely be tough, but we are fortunate that we have got some very invested shareholders who are committed and remain committed in the long term as well. Guy good luck tonight. We are looking forward to seeing the game, certainly in my household, by boys and i are looking forward to seeing chris play. Laurie dalrymple, ceo of harlequins. Lets look at what it means for the Sports Betting industry. Draftkings shares are falling after releasing the results. In landmark irs memo indicating taxable,d have been which could have an effect on the bottom line of draftkings. Ceo,ompanys chairman and jason robins is joining us now. Lets talk about where we are right now. We will talk about the talks story in a moment the tax story in a moment. Everybody is trying to figure out which sports will be played and which ones will not be played. You are able to sustain yourself through this period of volatility with so many sports kind of petering in terms of whether or not they will be on or off . Jason i think right now, we are really benefiting from a lot of pentup demand in sports. I think there is a lot of real great work that has been put in to planning for starters like the nfl so we are confident have taken the appropriate Safety Measures and will have a strong season. That said, we feel like we can weather any set act. If you look at. Setback. In june, we were able to grow 20 plus percent yearoveryear, despite the fact any sports were being played. The pga tour was really good, esports,. Good and our company has shown that we can pivot and create a different types of offerings and engage customers. Hopefully we will not have to do that as much in the fall, but we are prepared to do so if we need to. Alix there is a narrative in the market that a lot of guys that can bid on cant bid on. Ports go to robin hood jason if you look at our numbers from q2, we had a great quarter so it does not seem that it is occurring. One without any sports being played. The pentup demand for starters israel especially now that is real especially now that you are seeing the return of basketball and baseball. Recordsetting numbers since july. Guy the irs has deemed that entry fees are taxable at the point of entry. That is going to have a big impact as you work your way down the p l to the bottom line. Can you give us your reaction to ruling, thal bloomberg is reporting and what impact it will have on your finances . Laurie just to the irs did noty deemed that, there was a memo issued but for those who have any sort of interaction with large government agencies, there. Re many memos that get issued sometimes they end up having impacts. Most of the time there is a lot more that goes on in the process, that ultimately affect the end. We have been working with the irs on an audit for years now. We feel it is clear based not only on our own assessment of the facts and the data, but also dozens of state legislatures and courts around the country have come to the conclusion of, that Fantasy Sports is distinct from wagering. Daily Fantasy Sports is not wagering. Our opinion is that the memo got it wrong, and we look forward to working with the irs to help educate. This isnt the first time we have experience to that. Time when people are new to our industry, they dont facts. L the generally speaking, historically, it has always led to the same conclusion that Fantasy Sports is distinct from wagering. Alix we will catch up with you again and circle back on that. Jason robins, good to see you, draftkings ceo. That is it for guy and i. Balance of power on Bloomberg Radio and television. They will be speaking to Jared Kushner on the deal between the uae and israel. This is bloomberg. S is bloomberg. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. York, im from new taylor riggs. Power. To balance of legal right to abigail doolittle. We feel like this value from growth rotation is underway. Are we seeing a little of that this morning . Abigail the truth of the matter is we are looking at a slow simmer friday. Not a lot of action. A lot of investors have checked out on the beach maybe. Not a lot of movement. We have a little bit of cyclicalm toward the sectors, industrials, energy, financials among the top sectors. That is showing with the dow and s p 500 up a little bit. The nasdaq is down a little bit. There is a bit of a bit of play going on we had the 10 year down, bonds rallying. The yen rallying