Damaged two that had a key role in handling virus cases. Officials are pushing for a twoweek lockdown to control the pandemic. The french government is sending right police to the marseilles a rate to enforce mask requirements. Has seen scattered incidents of violence from people refusing to wear masks. Is weren 3000 new cave reported sunday, one of the biggest daily spikes since the country lifted its lockdown in may. The japanese Prime Minister shinzo abe visited a tokyo hospital for several hours today. They say it was for a routine avoidanceck but his and public appearances recently has sparked speculation about his health. He has not held a fulllength News Conference since june and has refused call for a new session of parliament to debate issues like the coronavirus outbreak. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Vonnie it is 1 00 p. M. In new york, 6 00 p. M. In london, and 1 00 a. M. In hong kong. Im vonnie quinn. Welcome to Bloomberg Markets. Here are the top stories we are following from around the world. The Democratic National convention getting underway today. We will speak with the former commerce secretary during the obama administration, penny pritzker. She will discuss the plan put forward by joe biden. And we dig into the political firestorm surrounding the Postal Service. Democrats and republicans talking about how to reliably deliver an election during a pandemic. And ill be speaking with matthew harrison, Morgan Stanleys head of biotech research. Lets get to david westin. David we welcome now penny pritzker, former secretary of commerce under president obama, founder of tsp capital partners. Thank you for being with us. Of course, the first day of the democratic convention, and we want to talk about Vice President biden. We know that you have guided his campaign. What should the markets be expecting from a biden presidency . Penny i think joe biden will be a good jobs president , he will help create the conditions where all Business People can create good paying jobs because he will offer readers certainty and stability to our economy, both domestically and internationally. Csa plan last week, for addressing how we plan for the pandemic, how we get an economic recovery going again. He has talked about what we need to do to control and get this pandemic under control, wear masks, contact tracing, massive testing, ppe deployment, strengthening Public Health infrastructure, all of the above. More importantly, he has proposed a Building Back better jobs plan that will include more durable growth for americans. A plan focused on investing in manufacturing, investing in r d, energy, investing in investing in our people. Think joe biden will be good for our economy, good for the country, and frankly, good for our global relations. David at the same time, there are those in the Investment Community who are concerned about tax proposals. Vice President Biden has made no secret that he would increase taxes on the wealthier and the corporates. Now, Kamala Harris says we should have a financial transaction tax. Be concernedreet about the effects on it from a bidenharris regime . No, first of all, Vice President biden understand we need to get our economy going again. The first thing we have to do is address the pandemic, which he did right outofthebox with, harris talking about how they will approach that. Bidens position has been consistent. On taxes will depend on our state of the economy. You have to understand the most important thing we have to do is get people back to work my get our economy humming again. Vonnie does that mean that he would put off taxes while he goes forward with spending programs . What does that say about our deficit . Should we be concerned about that . Order precisely what things occur, i dont know, that is not something i am privy to. , we continuesay is to be in a state of crisis as a country. Successfully, not to get our arms around this pandemic. Hopefully, some of the breakthroughs over the weekend around testing will be useful and helpful. Im a big believer in our scientists, optimistic we will get a vaccine. 2021 will look better economically than 2020. I think the Vice President and Kamala Harris understand the most important thing we have to do right now is get the economy going, and that requires certainty, stability, a clear eyed approach to the economy. Joe biden put out a plan for that. , ast relates to spending you and i have talked about, he has put forward how to pay for the programs that he is suggesting. How Congress Puts together spending and pay forth seems to be disconnected at this point, but lets first get back to more normal economic times, and then we can think about how to get ourselves out of the deficit will we have got. Vonnie as you look forward to the democratic convention, we are mindful that maybe active partlymay be uncertain because of the coronavirus. What do you make of the dispute right now over the u. S. Postal service . Penny this is insane. First of all, we should be funding the Postal Service so it can do its job. I believe it is a constitutionally mandated job. We need to make it easy for americans to vote, regardless of how they vote. Some states like colorado and oregon where you have been voting by mail, and that is the norm there, that is how they do voting. We need to make this easier for the rest of america in a time of covid, that they can vote by mail or by absentee. There is no difference between the two of them. There is no evidence there is vote byad fraud in our mail or absentee system. What governors are trying to do is make it easier for the populace to have the opportunity to speak out, which is what a democracy is all about, the right and the ability to vote for everyone. Vonnie [no audio] [no audio] david mindful of the fact that you identify with chicago. What is the state of play in chicago right now, what needs to be done . Penny i think our mayor and superintendent of police understand the challenges we have. We had a significant gang challenge. Fundamentally, they understand that what we need to do is prosecute looters and protect peaceful protesters, and recognizing those are two separate groups. It is a complex time for our city. Our south and west sides have been underinvested in four decades. Haveve had policies that not provided the conditions for private investment in many of these communities. We need to address that as well. Turning back not only to our with, who understands this her programs, but also to joe biden and Kamala Harris, who understand we need to have inclusive investment in communities across the country, where everyone is benefiting, not just certain parts of our city or country. David is it asking too much for the federal government to address the situation as we have in chicago right now . Andy the city of chicago the state of illinois can address the challenges in chicago. The mayor and the Police Superintendent came out on friday with additional plans to have more comprehensive monitoring of social media. But i think they are on it. Vonnie thank you so much. David i you being here. This is bloomberg. Vonnie our thanks to david westin, speaking to penny pritzker. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn. Nvidia is due to report and a couple of days. And a less are becoming more optimistic. Shares are up 7 . Abigail doolittle has the story. Abigail shares are up 7 . This stock is up more than 100 this year, more than 170 off of the march lows, and it is a 300 billion cap company. Analysts are excited ahead of the report on wednesday. White we have nvidia, in blue, the average price targets. So, the stock is above the abovee price target, 17 420 three dollars, which suggest maybe the market is a little frothy. Work in have analysts conjunction along these lines, similars it suggests conversations have been had, but it seems like analyst are using this stayathome idea. Most of their revenue comes from gaming. If the percent of their chips come from gaming. 27 is the data center. A lot of pressure for them to in some automated areas. Similar to some Tech Companies this year, i should say, this is the top performance this year. Docusign was up more than 200 this year. Nvidia up by 170 . That is matched by zoom. The nasdaq 100, not too shabby, but up 60 barely makes it. It is a Pretty Amazing context we have seen from these companies, begging the question, is it too much, too fast . If thatwe will see pattern emerges. Lat is also interesting, brands and gm also up, on little news to speak of. Time for our Bloomberg Business flash. The Trump Administration plans to sell drilling rights in the Arctic National wildlife refuge. It has been offlimits for decades. Couldsts say operations endanger caribou and polar bears. This will obviously lead to a battle. L american homebuilders are the most confident they have been since 1988. Record low Mortgage Rates are driving the demand for new homes. It has been a new battleground for wireless carriers. They are used to competing on price cutting david now it is a fight to see who gets the best streaming offers. Lurizon is adding disneys hu and the disney plus through its package offer to customers who sign up for certain plans. Still ahead, questions around coronavirus antibodies, and the race for a vaccine. We get the latest from matthew stanleysrom morgan biotech industry research. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn. To developpush coronavirus vaccines is accelerating with more Companies Moving through stages of vaccine trials. There has also been an antibody debate brewing over the weekend. Joining us to discuss it is matthew harrison, Morgan Stanleys biotech industry head of research. There was a lot of debate and essentially the question is, antibodies, how long do they last . Do we know . Matthew good question. Literature,ntific at this point, we know that you have a spike of on specific antibodies and then a longer tail of specific antibodies. Those are the ones that likely provide protection. In recovered patients, some papers suggest those are pretty stable out to six months now. If you look at the experience s, a coronavirus which is similar, recovered patients had stable antibodies out for a year. Our view is recovered patients probably have stable antibodies for at least a year. Ornie what about antibodies immunity from other things like the flu, other infections we can get throughout the year . Any possibility that you may react differently if you have the flu for example . Matthew i think the question you are asking is about these crossreacted t cells. Your immune system has two sides. One side generates the antibody response. That protects your body from getting infected. Think of the antibody as the first line of defense. Then if the cells inside your body get infected, then your t cells and come into kill those infected cells. Is, when people look at the t cells that have been generated against the ,ommon cold coronaviruse they seem to impact covid19. So does that provide protection from other people that had other cold coronaviruses . It is clear that people had those but it doesnt look like they were protective. You can look at super spreading events. For example, the cdc published something about a choir at a practice where about 80 of the people there were infected. If 50 of those people had these t cells against common coronaviruses, you would think that they would not have been infected. Prison have numerous populations where 60 of the population has been infected. T cells may help to modulate the severity, you may have milder disease. But it is unlikely to be protective. A little bitpose of optimism but not as much as you would hope for. What does that do to the threshold for herd immunity . An we hope that that will be natural occurrence again, or is it just as far away as ever . Matthew my view has been that values, immunity with the values around the 65 to 70 range are probably realistic, but we are far away from herd immunity. Vonnie we have Different Countries coming out talking about their race for a vaccine. Where are we in the process . Given that there are something therapies and vaccines in development, what is the best hope for us right now . Matthew there are three leading vaccines that have entered phase three studies. Theone from extra zeneca, oxford institute, pfizer, and moderna. Moderna started their phase three studies in july. Studiesenner has a few that they are hoping to combine into a bigger study to give to regulators. Are two factors that drive when we get the results. How quickly you can enroll the studies. And number two, how quickly you can get people in those studies infected with covid to see how protective the vaccine is. We have done a variety of simulations on that. The earliest that we think you could get data is in october. That would require the vaccine to be highly efficacious, 85 or more efficacious meeting they would protect 85 more people than placebo from infection. November is our base case assumption. The vaccine would need to protect about 60 of people. Vonnie is it certain that the u. S. Will have the best vaccine first . Russia was making claims of having a vaccine, can we rely on a country like russia to come up with one first . Matthew we dont have a lot of visibility into the data that supports that approval. The broader question is, right now, it looks like the vaccine trials being run in the u. S. Are the ones that will demonstrate safety and efficacy from a broad program. Tell, thei can soonest those vaccines will be tested in a large sample to make sure we dont have a key safety risk. For right now, those large phase 3s are the only ones that i know that are going on globally. Vonnie thank you for keeping us updated, matthew harrison. The head of Morgan Stanleys biotech industry research. Phenomenal in keeping up with the latest of the coronavirus and what we can anticipate. Going in a new direction. Talked about the vision for the company as the torontobased firm looks stateside. Experience the ultimate sports hub. Where you can find games, news and highlights. All in one place, right on your tv. The xfinity sports zone. Use your voice to search every stat and score. Follow the teams you love. And, even get notifications with breaking news alerts and more. With the xfinity sports zone everybody wins. Now thats simple, easy, awesome. Say xfinity sports zone into your voice remote today. Mark im Mark Crumpton with bloomberg first word news. Former Trump National security adviser john bolton at high praise for one of his predecessors. He spoke with bloomberg about brents go croft who died earlier this month. He served under the first president bush. He was really a dominant withe in policy, beginning saddam husseins invasion of liberation of, kuwait, breakup of yugoslavia, breakup of soviet union, collapse of the warsaw pact, and of the cold war. It was busy in those days. He was a very levelheaded guy. Who h w bushmeone knew very well, which is by he made him National Security advisor. Mr. Bolton also said that president bush is an anomaly to the Republican Party and that he is peerless to have been the white house. Wanda vasquez has lost her chance at reelection. Nonvotings former member of the u. S. House of representatives edged her out in an historic gubernatorial primary. The results come one week after delayed in missing ballots led to a chaotic primary that forced a second round of voting on sunday. An encouraging sign today from arizona. The state reported no covid19 deaths today and the number of virus cases continued to decline. New infections, the smallest daily total in more than two months. More than 4500 arizona residents have died since the pandemic began. In europe, schools are reopening within Person Learning and little debate but there are plenty of masks and social distancing. If there are any coronavirus outbreaks, authorities are generally planning to shut down only individual schools or classes, not entire systems. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Live from toronto, im greg panella. Vonnie im vonnie quinn in new york. We are joined by our bloomberg and Bnn Bloomberg audiences. Naye from summer break to fund post office. Of course a new week means a new watch in the s p 500 to see if and get above its alltime closing high and whether it can hold it. Even today we have been flirting with the other side. 3385. 68. At we are not even a full point away from the alltime closing high. Money moving into tech. The nasdaq is up by a percent. But the banks are under pressure today. Berkshire hathaway, 13f filings told us that Warren Buffett trimmed some of his holdings. That could be holding that sector back. The last one on the board, ci financial. Up a percent today. This is the torontobased asset and Wealth Management firm that has been making moves south of the border in some interesting acquisitions recently, under the leadership of their ceo. Lets bring in Kurt Mcalpine on. What is attractive to you, running the shop, trying to transform ci financial with these u. S. Businesses you have been picking up . Shortly after joining the company in september, we rolled out a strategic strategy. Modernizing assets, expanding Wealth Management, and globalizing our company. We are by far the largest of the independent asset and Wealth ManagementCompanies Based in the canadian marketplace. Anyone that is larger than us is owned by a bank or insurance company. The Market Dynamics are very mature. We have a very strong starting point. When you look at those Market Dynamics and rely solely on a market with those characteristics, we believe that is a risky strategy when opportunities exist to complement that with growth in other markets as well. Specifically how did we land in the u. S. Versus other markets . If you are a large Canadian Company looking to expand, there are two markets to consider, the u. S. And europe. To me, it is a clear decision as to which market to prioritize first for global expansion. I would consider both markets to be equally competitive. Both the u. S. And europe. The u. S. Opportunity for the businesses we are in is about four times larger than europe. 10th as complex to operate when you look at all of the exchanges and cultural differences as well. Vonnie a lot to get to here. A lot of competition in the u. S. Some european banks have been competing as well. Hoovering up,been what difficulties have you come across . Kurt we are focused within the registered Investment Advisors segment. We started buying firms earlier this year. We have acquired five firms birectly, done three su acquisitions. Growing rafastest platform in the u. S. , both in terms of number of deals, assets, growth rate in total. I would say our Value Proposition is fairly unique compared to every other firm acquiring, which allowed us to move so quickly from nothing to an 11 billion platform. In terms of the attractiveness of the u. S. Market for the growth of ci you need toould consider the landscape down there, if esther biden takes the white house . It has been suggested that if the Trump Administration remains, a regulation light touch. Mr. Biden may have a heavier touch for your industry. Kurt when i look at the Wealth Management industry, it is centered around one fundamental belief. I feel the role of the Financial Advisor is more important today than at any point in history. Regardless of what happens politically, that statement will be true every year for at least the next 20, as you think about changing from a pension system, People Living longer, more complex lives, things like that. Regardless of the political outcome, regulatory reform, we feel bullish about Wealth Management in the u. S. , specifically through the ra segment. Vonnie are you worried at all about a bubble popping . Becauset in particular we are strategic investors. A lot of the firms we are competing with from an acquisition perspective are financial buyers. They are looking to get in and out. We are a permanent owner of these businesses. Evaluating these businesses, what im specifically interested in is, yes, the markets will go up and down based on a variety of factors. But what does Client Retention look like . Our client staying with them regardless of market scenarios . Are they delivering great Financial Advice . As a strategic buyer, that is what i most focused on. Over the long term, despite any shortterm hiccups, we remain bullish on the segment. Talk about the succession crisis and the opportunities for ci financial. Are you finding challenges bringing these shops under your umbrella . They were closeknit shops, and now they are owned by a Canadian Company. Cit when we first started, has phenomenal Brand Awareness in canada, not so much in the u. S. When we entered the marketplace and started to get involved in certain processes, we were tapping into my personal and professional networks in my. Xperience coming here to ci i was able to build relationships. Once we announced a couple of deals, the bank started to take notice toward us as a strategic buyer. Now that we have done so many deals have been so active, we have firms reaching out to us, bypassing the banking process, looking to partner directly. As a starting point, it was Brand Awareness, understanding what we are doing. Now that we have been so active, we have phenomenal momentum. I expect that momentum to continue. Vonnie thanks for joining us today, kurt macalpine. The s p 500 taking aim at a february closing record. We will discuss with Carol Schleif. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn in new york. Climbing toward an alltime high today. Tech shares leading the way for a change. That is a joke. Joining us now is Carol Schleif of abbot downing Investment Advisors. We have had this pattern all year, tech shares leading the way. Every now and then we get a reversal of that trend. The five Major Companies that we talk about all the time are leading the way. Do you see that changing anytime soon . Carol its interesting because if you look at the equal weighted s p 500, it has performed better than headlines would believe you to believe. This has been a Broader Market rally with other industries. Of course, the big five, or even the big 10 or 15 Companies Get all of the headlines. But we have really leaned on their technologies, especially in the last six months. The one thing that is pushing some of the other names in there, too, is the weaker dollar. People are trying to project if that carries on, what tends to perform. That is emerging market stocks, smaller cap stocks, other industries. People are trying to make heads or tails of that. That is some of the indecision you have going on, and just participating in a dead cat bounce with so many of these things beaten up. Greg a bit of a summer slow down. If we do get a new alltime closing high today, and right now it doesnt look like financials are taking part, would i be reading too much into that . Reaching a new post pandemic high without financials taking part . Carol it is unusual. Theory, you cannot have it keep going on without the transports confirming. But when you start poking around the actual fundamentals of a lot of different Financial Companies energy, parts of those industries are pretty broken. Putting them back together again after the pandemic, as we transition to the next phase, is anyones guess as to what they look like. Investors are being discerning about individual companies that have lead into this crisis, figured out how to operate or accelerate plans or take advantage of the need to change their business models. Vonnie we are not getting any positive headlines about new stimulus. It looks like that has been paused for now. What happens if we dont get another stimulus round . Carol im actually really surprised the markets have not taken it harder. It seems like it took the pressure off of all the politicians to move to any deal, because the markets were not throwing a fit about their not being one. I think my people will watch for , economic numbers have been supportive, but they are trailing and coming off of the benefit of everyone going back to work, the reopening in may and june. Now without the stimulus, if the ,conomic numbers start to wane then there would be more concern in the markets. It really has been pretty perplexing, that the markets have not shown more concern to date over the lack of a deal. But i60 seconds left, wanted to ask you about headline risk heading into the fall. All of us have enjoyed the summer, that we can get outside vonnie i am going to say no. I will be watching the economic numbers come in. The back to School Season is new for everyone, everyone is nervous about it. Whatever format everyones backtoschool is income it will become commonplace. One thing to watch is the back to school selling season. It will not be back to normal. Normally, it is the secondbiggest season for retailers, but people will be buying technology, not close, this year clothes, this year. Greg Carol Schleif, thank you for joining us. It turns out the check is not in the mail. Lawmakers being called back to washington to deal with the crisis. We will talk about that after the break. Greg this is Bloomberg Markets. Im greg bonnell in toronto. A proper doctrine missing from Donald Trumps white house, according to former National Security advisor john bolton. We talked with him earlier on Bloomberg Radio. Dominant really a , beginning with saddam husseins invasion of kuwait in 1990, liberation of the people in kuwait, breakup of yugoslavia, soviet union, collapse of the warsaw pact. It was busy back in those days. He was a very levelheaded guy. Who george hmeone w bush knew well, which is why he made him National Security advisor. Are you confident that either party can get back to the grace oft after a trump era . It is harder and harder to do, which is for the first time in my adult political life, im not voting for the republican nominee. I think we can correct what can happen after one trump term, but after two, perhaps not able to correct. How hedont even know would react to the way it is today. What does joe biden need to do to make it a one term trump . I am not going to vote for biden either, which i think we may have discussed her. In the remaining days of the campaign, if he projects evenhandedness, steadiness, courtesy, a sense of humor, a lack of vindictiveness you know, being a normal guy, would go a long way. People crave that. Even many republicans have spoken to will vote for trump because they fear the left wing of the democratic party, they are not happy about that either. I thing many of those people may yet vote for biden if he says are are my ideas, and we going to pursue them in what we used to think is a more civil fashion. Vonnie john bolton on Bloomberg Radio earlier. Cuts to the Postal Service sparking accusations of sabotage over mailin voting. Speaker nancy pelosi suspended the house for summer recess to debate legislation to shore up the post offices resources. Our congressional reporter eric watson joins us now. The democrats are going to put in 25 billion. The republicans and the white house have offered 10 billion. What is the next step in this particular issue . I think this is really a political moment. There is a real sense that the Postal Service is very popular, outrage even among moderate democrats. It will be a tough vote for republicans to take. Billionfunding, 25 dollars, but also a statement that services should not be cut back but maintained at january levels. Itrepublicans against that, becomes a political headache. Also, no signs that Mitch Mcconnell will bring back the senate. He talked about today the post office being just fine. As far as getting a deal on this funding, they are still far apart. Behind closed doors, they seem to be getting closer to a 10 billion figure. If there is wide agreement on the stimulus, that could end up getting done. Think of the u. S. Postal service, i have always considered it one of your bedrock institutions in the united states. We are seeing a partisan divide over the post office . It boggles my mind a bit as an outsider. Ik the president has been raising questions about mailin voting, saying that it is right with fraud, but he is absentee voting in florida. Just had breaking news a few moments ago that the House Oversight committee, which requested that the new postmaster general, and talk to them next monday, has now agreed to do that. That will be a highprofile hearing for chairwoman Carolyn Maloney of new york and others to ask the postmaster general, who is a major donor to the goingcampaign, why he is through these cutbacks, the rationale behind the, and the effect on the election. Vonnie we know some of the services have been impacted by taking away some postal boxes. That has been stopped. Timeout here that will last as long as november, or is there still a real threat to the services . President trump is still talking about the usps losing money not that that is relevant here. Erik there was an issue about post office boxes being moved in western states and there is a temporary moratorium on that, but overall there have been cutbacks on overtime and other staffing, reports on mail sorting machines. There is no sign that they are backing off of this costcutting endeavor at this point, which is why democrats feel it is very urgent. It is hard to get good data on it. Our colleagues are looking into how widespread these delays are. We have anecdotal evidence that here in the washington, d. C. Area, some neighborhoods have not seen mail in weeks. Out, there proves it is a real serious concern, not just for voters, but people who get medicine in the mail as well. Vonnie it is serious stuff. Erik wasson, thank you. This is bloomberg. Caroline it is 2 00 in new york, this is Bloomberg Markets the close. I am caroline hyde. Romaine i am romaine bostick. Taylor i am taylor riggs. Caroline u. S. Stocks climbing toward alltime highs with a rally in big tech. Goldman boosts the s p target by 20 . Postal problems. Democrats accusing President Trump of sabotaging the Postal Service to crypto votebymail. An exclusive interview with the carnival ceo. More coming much up. Romaine a lot more to look at on this day. Record highs again. We did flirt with the closing record high on an intraday basis. We did