Even home depot, which was great, is lower, as the whats next is the question that we have. With stacy witless, fw retailer advisors president. Also night one of the Democratic National convention saw democrats ripping it up President Trump with tough words from former First Lady Michelle Obama and bernie sanders. Let me be as honest and clear as i possibly can donald trump the wrong president for our country. He has had more than enough time to prove that he can do the job, but he is clearly in over his head. He cannot meet this moment. He simply cannot be who we need him to be for us. But let us be clear. If donald trump is reelected, all the progress we have made will be in jeopardy. And its most basic. This election is about preserving our democracy. Alix joining me now for more is wendy jennison, Bloomberg Politics editor. What was your biggest pic for tonight and how does that set us up for the dnc tonight . The biggest takeaway from last night was the effectiveness of Michelle Obamas beach. Because of the virtual nature of the convention, you cannot do the podium pounding passion that she can really bring to a speech, but from her armchair, she calmly and sort of forthrightly said what she believes about Donald Trumps it means ford what the country. It was interesting that she did not name call or say he is a racist or any of the things you hear about donald trump. What she said is he is in over his head, which is the kind of possible way of putting it. Kindest possible way of putting it. She was sticking with her w they go low, we go high. Joe biden is speaking tonight, so that is the big drama tonight, along with an unusual keynote speech by 17 rising stars of the Democratic Pa rty, who are all fairly moderate, not to progressive left. It will be an interesting evening. Alix we will be looking forward to that, thank you very much, bloombergs wendy benjaminson. Joining us is the former undersecretary of the treasury for National Affairs and the Obama Administration and spent 18 years of the Federal Reserve. Nathan, i love catching up with you. What i am struck by when it comes to this market and this debate in d. C. , some of the data is really good. Starts, really good. Household income is very high. Record highs in the s p, but there is all of this dot dot dot, what if there is no more stimulus . We are seeing a very bifurcated consumer sector. For some households, its essentially normal times. They are continuing to be paid, their 401 k s are doing fine with markets being strong, rates this is prompting some households to say, lets buy a house. You saw that in the housing start. On the other hand, there is another part of america thats really feeling a punch as a result of this episode. These are folks that are very dependent on the fiscal stimulus which congress has not been able to figure out. These are folks that are struggling to pay the rent. They are uncertain about their economic prospect, and we are tensioning this ongoing in the way the economy is evolving. And its generating some good data on the one hand, and we see that also in retail sales, side asarly in the opposed to the services side. But we also see a drop in consumer sentiment, which continues to be quite weak, much weaker than before the virus. Alix i guess the question is when do we feel it . Wee right, wed still dont have a stimulus until we get some kind of truncated version from senate republicans. When does it hurt . Nathan the answer about when the pain comes is how long it takes for us to beat this virus. If we are able to put the number of cases and the number of fatalities on it isdownward project or he in the month ahead and as we move into flu season and our immune systems are attacked, doing that in the next few months is going to be a real challenge. This thing drags on, the higher the probability that we are going to deal of morean aggregate pain. I think it rises proportionally. Weve got to get a handle on this virus. Weve got to do it as quickly as we can. Alix and i am wondering how it stacks up to the rest of the world as well. Yesterday was all about the virus and President Trump, but the underlying details of how we are going to move forward have to do with our relationship with china, our relationship with europe. There is a quote that i want to get your take on, that the covid19 crisis has threatened u. S. Global dominance, and the balance of power that will result is still unclear, but the coming of increasingly greater concern by the day. There is so much more even at stake than just, can we get through covid . Its about how we are able to deal with the rest of the world. Nathan yeah. I think the stark reality is haveother countries managed this virus more effectively than we have in the United States, and i think that our struggles have reflected our political divisions and our governance problems. Consistent with that between donald trump and joe biden, i two veryare seeing different views on what the United States role in the world should be. Donald trump has a vision of a very muscular america, where we have gone it alone, and i think if he is reelected, we will see even more of that. With china, trade wars with europe, ongoing tensions with our allies. On the other hand, i see joe biden as much more in the traditionalist mode, which has, the unite which has the United States in a position of global leadership, working closely with our allies to achieve common object is. I think in this environment, i think many of our allies share our concerns about china. We can work with them to achieve some of the objectives that President Trump has sought to do these are very different views of america and where we should be in the world. Alix is there any asset class that is reflecting that right now . Nathan no. I think where we are seeing these tensions in a most pronounced way is in the Foreign Exchange market, where we have seen a meaningful depreciation of the dollar over the last couple months, and i think part of that reflects that the europeans in particular have responded in a forceful and effective way to the virus. Reflects their economic policies, but it also reflects some of these governance problems and schisms we are having in the United States. It is a strong euro story, but i think its also we are seeing a weak dollar story through these times. Of vicees that mean President Biden wins, we see a stronger dollar . Is it that simple . Nathan what happens to the dollar, if joe biden wins the election, is a very interesting question. I think these factors that i described, i think particularly Foreign Investors would feel much more comfortable with the United States and with u. S. Assets. I think that would tend to support the dollar. On the other hand, we also know that part of the democratic platform is efforts to address inequality, and thats going to require further Government Spending and higher taxes. And those higher taxes could be unsettling to markets. Playw all these factors out if biden is elected and what it would mean for the value of the dollar, i think is a very much open issue. Now, tax later kind of situation. Nathan, you will be sticking with me, im glad to say. Nathan sheets of pgim. We did hit an intraday record high in the s p, but we are now in negative territory. Be sure to tune into Bloomberg Television later today. Night two of our several coverage special coverage of the Democratic National convention, beginning at 2 00 p. M. New york time. This is bloomberg. Im live from new york, alix steel. This is bloomberg markets. U. S. Steel remains that yields remain at record low levels. Thee the really real yields really telling us . H is still with us and so is mike mckee. In your world, what do you see . Nathan that may be the case. Is hard tod it separate stuff out at this point, but we are seeing questions about where inflation is going to go because weve got waits on both sides of the scale on bothup weights sides of the scale on the supply side and on the demand side, we have seen inflation rise a little more than expected last month, and that could enforce the idea that we will see some shortages of goods if we continue to see light chains supply chains interrupted. Where does this economy come out . We are trying to pry sex scenes in there and john is much smarter than me, but the timing try vaccines in there and john is much smarter than me, but the timing is interesting to watch. Equityirst it was markets, now it is real yields. What are you watching . Thean my sense is that real yield is reflecting mediumterm long run medium to long run uncertainties about u. S. Growth. My sense is that demographics are really important and the markets are seeing mats, and they are worried about the strength of demand over the medium term. Vaccine,e to get a would that be a boost to the economy . Absolutely. If that vaccine comes sooner rather than later, are there may be some upside risks to where those real yields are now . I think the answer is yes. I think it is primarily pricing in a soft, longterm outlook for the economy. But there are some upside risks, and a vaccine is one of those. Nathan, im wondering how much you think this recovery is going to track the traditional way of recovering, where certain sectors respond first . We have seen a big rise in Housing Starts and strength in housing across the board. That is what we should expect. Will that be enough . Will that follow a classic pattern or are we in uncharted territory because of the way this thing has happened . Think it is extraordinary from the feds perspective, that given all the uncertainties in this economy that overhang from the virus, that they are getting as much kick out of these lower rates in the housing sector as they are. Find thaty powell very encouraging. My model here for thinking about her recovery, once people start to feel more comfortable about the recovery, once people start to feel more comfortable, i think we are going to see something of a return to previous kinds of spending patterns. Will there be some differences . More on text, less on hotels and movie theaters tech, less on hotels and movie theaters, but is the return to normalcy, the economy recovering broadly on the back of low rates. Get does that mean you inflation, maybe a taper tantrum, deflation into value situations is that a given or not so much . Nathan so this question of will there be inflation is one that is getting a lot of attention right now. With Federal Reserve balance dramatically, with lots of debt and debt issuance out there, it is a reasonable question. When i do the calculus, i put myself back to the end of the Global Financial crisis, when i was hearing the exact same kinds of concerns. In the event we went into a period of disinflation and low inflation why was that, with the structural factors that i was referring to . Demographics, reduced demand, putting downward pressure hence on inflation. Innovation and productivity have had similar kinds of the effects. My feeling is that yes, we could have some bubbles of inflation occasionally, and we saw some in they arecpi data, but shortlived, and i think Central Banks will be struggling to hit their targets in the years ahead. Mike let me follow up here. One thing i want to mention, where we may see some rotation and consumers buying electronics everybody is watching back to school. Buying less clothes, because kids are not going back to school, and more computers. Nathan, i wanted to ask you, in terms of inflation, now that the fed has finished their fame framework review, they are going to change the framework and say they are going to let the economy run a little hot, can they get inflation up . Doesnt matter if they change the framework of inflation stays stubbornly below 2 . Nathan it pains me to say, having worked at the fed for almost 20 years, but i dont know. I think it is an open issue as to whether they can be successful. Of what i also am confident is the Federal Reserve is going to give it everything its got. The fed is going to bring to bear all its tools, all its ammunition in trying to achieve that 2 inflation target. Will they be successful . I hope so. Get Japan Provides a cautionary tale. Time will tell here. Alix if nathan comes on and says i just dont know, we definitely dont know. Michael mckee, thank you for joining me. Nathan sheets, it is a pleasure. Hopefully you will be in the studio once again. Nathan sheets of pgim. Heres the why the u. S. Is suing temne pharmaceuticals over false claims, saying it violated a kickback law, according to a complaint filed by the u. S. , and that they pay 300 million for some copays in u. S. Claims. Down by 2. 5 . Coming up, the race to buy tiktok oracle apparently weighing a surprise bid for the viral video streaming app. Who makes the most sense here . This is bloomberg. Alix its a race to own the favorite app of tweens, tiktok. Oracle poses a threat to microsofts bid. Tiktok is popular with kids. Oracle and microsoft are names we would not associate with the popular with kids. What gives . Thing, it iscle hard to see how they could pay more than microsoft, seeing how they have many synergies with the tiktok business. They have linkedin, which is a acial network, and bing, search engine. Maybe this sense is they could become a stronger pillar to counter the sorts of google and facebook and amazon. There is a strategic market there, it is hard to get your head around oracle. It really is. Regardless of who gets it, oracle, microsoft or someone else, what does the future of tiktok look like . A tiktoksible to have u. S. Owned by one of these companies and in a bubble, and tiktok everywhere else . Is that legit . Alex technically it would be possible. It is hard to do with the appeal of the business would be. I think the u. S. Download business would make some sense, have some appeal. The rest of the World Business is kind of problematic. If you look at places like the u. K. , france, germany and much of europe, there is a symbiosis between content produced there u. S. And consumed e, and content produced in the u. K. And consumed here. That seems to be a problem with the rest of tiktok, the lump of it would remain with byt edance. Alix asides from linkedin and microsoft, wired they getting thrown about in this why and otherster getting thrown around in this . It probably cannot afford it. Twitter is a 30 billion company with Something Like 8 billion net cash. Tiktok is valued between 20 billion and 50 billion, depending on what reports you believe. From an antitrust perspective is not likely to happen, and the same would go for google. That is why the existing social Media Players unlikely will not. Alix this is a fascinating story and i would love to see where this ends up as the clock is ticking here. Alex webb, thank you so much. Up next, home depot, walmart blasting through estimates in the can the second quarter. We will have stacy witliz. Both stocks are rolling over, s, due to kohl tough times to come. Ecommerce sales doubled, and the kohls loss is narrower than by 142d, but it is down now. The dollar is at a low. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . 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. Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Alix live from new york, i am alix steel. My cohost guy johnson is off today. Retail picking off this morning, reports from home depot, walmart, and kohls. We want to go through the numbers with bloombergs senior markets editor. Scarlet, it was the outlook and the warning that dragged down the stocks. Scarlet like Everything Else in the economy, the Retail Industry has become very bifurcated, a split between the haves and the havenots. Those that have had to close during the pandemic are feeling the pain, such as kohls, and the essential businesses did better, talking about walmart and home depot. Both Companies Posted revenue gains. They had the luxury of instore sales,s well as online and home depot in particular, when you look at the numbers, double digit percentage gains in sales, eps, comparable sales, which everyone looks at the retailers, and average ticket prices. But rising expenses did mean flat margins at home depot. I go back to what you said earlier about the cautious ceo of home the depot said we cannot extrapolate the current performance to future performance. What we do know is the home has never been more important to the customer. Know, the pandemic has led to a resurgent housing market. People want more space, they are leaving the cities in drov es, and the data really highlighted that, showing Housing Starts and permits rising more than expected. A secondquarter loss for kohls, sales falling 23 . Sales also dropped. Top and bottomline were better than expected, but the company did not offer any guidance. It did say it is planning conservatively for the second half of the year. You are looking at the falcon 9, launching from Cape Canaveral air force station in florida. You are looking at the launch there. This will be the falcon 9 boosters sixth flight. The reason why thats so important, is because its basically the commercialization of space. The point is to create a network that will help provide Internet Services for those that are not connected, provide reliable, affordable internet across the globe and a backdrop for why the falcon 9 and the launch is so important. These are though worlds whichreusable rockets, makes it cheaper down the road, and you can reply the most expensive parts of the rocket. The falcon 9 taking off right there from the Cape Canaveral air station in florida. This is the 11th startlink mission. Get back to retail on the stocks that are moving. Scarlet, thanks for that roundup. Joining me with more is stacy widlitz. Lets go forward with the outlook. I want to hone in on walmart and what they were saying about julys sales. Stacy walmart average ticket was up 27 . That is huge. But they did talk about slowing into july and kohls talked about the same thing. If we think about what has been driving the consumer, retailers have been incredibly clear that stimulus has helped, so if that is taken away and does not a bigar, that is pressure. In addition, lets think about paid their taxes july 15 rather than april 15. All of a sudden their wallets are emptying out pretty quickly, so there is a question Going Forward what the real demand will be. How many levers will Companies Like walmart and home depot have to pull to bridge the gap between stimulus . Going onthink whats here, for walmart, it is very much about onestop shopping. The number does not want to go to a bunch of Different Stores like they used the consumer does not want to go to a bunch of Different Stores like they used to and walmart has access to food. Digitspot, double because people are improving the home i do not think they need help right now, but Going Forward, i think the big thing is that the smaller businesses are struggling and the big guys get even bigger and keep gaining share. By the way, walmart can hold price whereas everyone else they are increasing prices a little bit week of their costs are going up exponentially. Alix what do we know about the stock reaction in terms of what is priced in . You had the surgeon walmart and then it was lower, while kohls was negative from the start. Stacy when these numbers first came out, it was like, this is as good as it gets for home depot and walmart, and they were up. The commentary is like ok, we will post july, moderated. A little shaky. We do not know if we are going back to in many areas back to school in many areas. The reports were much better than expected, but no one likes that commentary. The good news, walmart and home depot talked about less promotion. Kohls, a different story. Alix can you help me understand how the u. S. Retail world backs up what we see in the u. K. Overnight, Marks Spencer cutting several thousand jobs here. What do you make of it . Stacy if you are talking about u. K. Retail i cover Marks Spencer as well, and my analogy, it is the jcpenney of the u. K. Here. A lot of it is selfinflicted on the general merchandise and growth side, not much compared to the competition. If you are not one of the best operators that is positioned for youomline take of store, have a big problem in this environment. Alix i was struck by how big the job cuts were and how late in the cycle it came, which made me think, are we in for another round of these retail job cuts, u. S. Or europe . Stacey i think we absolutely are. Righte about 1000 lost now, and i am expecting 30 to 40 to close. Luxury brand are talking about, this is a great time to right size and bring scarcity back. End, not only at the low but the highend. You will see many store closings and layoffs, and i would also focus on the Small Business the ones that are really getting hurt. The cost of doing business now cleaning, security, Hand Sanitizer dispensing, is immense and the little guys just cant handle it. Alix thats a good point that leaves home depot and walmart in a better position. What are they doing . Are they hiring people . Are they able to control their cost . Stacey what theyve done is quite the opposite. If you look at walmart and home depot, walmart spent 1 billion in the first half of the year spendingroes pay, extra money on cleaning and security and giving their people time off if they are vulnerable, doing all the right things for their employees . Again, this is only something a of significant means can handle right now. They are open and necessity driven. It is amazing to think home depot and walmart, their free clash Free Cash Flow is up 70 eigh yearoveryear. Tomorrowget coming out as well. What is your top pick in the retail space . Stacey my topic is target, coming out tomorrow. We have had a longterm long target, short hold for over a year now, and that hold, i think target will be the onestop shopping winner. They do amazing in private label. When the higher merchandise ff bounces back, on the they will be on the upside. Post pantrynto the panic part of the retail tree. Alix post pantry panic. That was impressive, stacy. Widlitz of s w retail advisors, thank you. Heres what else is happening in the world. It is a formula working well for americas homebuilders, strong Housing Demand fueled by record low mortgage rates. By 18 andd rose applications to build increased by the most in three decades. China announcing the u. S. Limits Huawei Technology is nothing short of bullying. President trump told fox he does equipment heres because they spy on us. He is also granting a party to susan b anthony. Anthony campaigned for giving women the right to vote. Anthonys prosecution brought National Attention to the suffrage movement. And we have learned that the will berime minister the next finance minister, replacing bill monroe. The negotiation of the north American Free trade agreement with canada and mexico. Global news, 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Coming up next, wills spack take over the ipo world . Thats coming up next. This is bloomberg. Alix coming up later today on bloomberg technology, darius honeywell chairman and ceo, coming up at 5 00 p. M. In new york, 10 00 p. M. In london. Going bigger than public sp c ack a company toor tap the Public Market, but are more expensive than an initial public offering. An Angel Investor joins us as his special Purpose Acquisition Company raises 200 million on the new york stock exchange. Joining the also is shelley bloomberg wall street correspondent. Some people have come out and say they are said they are a total bubble. Not good for investors. What is the pushback on that . N the pushback is happening, unfortunately, but we are looking to reform the industry. We have seen a lot of crazy phenomenon, whether it was the internet being around for decades and legitimizing in the s have, or bitcoin spac been around for decades and where at the top of the first inning. We are not at the bottom of the ninth. Ares just starting, and we trying to reform the states. We are trying to get the economics in line, drive out the carpetbaggers and bring in the ones who want to find great, durable companies who want to grow with them for the long term. Is this silicon valleys way of overthrowing the ipo process they have been frustrated with for so long . Kevin my wife julia went through the ipo process in september 2018, and it was a great experience, to be honest. It was a little distracting, many quarters long and the Management Team had to focus on getting the company public, and it was complex. Alternativeis is an arrow in the quiver of a way to get to Public Market. What is happening is the swing of staying private forever, we are in an average of 12 years of staying private, getting into the Public Market sooner. Kevin, i couldnt help but notice, you have one book runner ceo, it was goldman sachs. Is this a way to lower the fees you pay going public with fewer banks . Kevin goldman is a trusted partner, we work with them through a vent right, and because they are the sole underwriter here through eventbrite, and because they are the sole underwriter here, that launch with a quarter of a warrant. We will reform the economics really in the sponsor. The sponsor, against my own best interests, is an egregious amount of money to be made. We can really make that by holding these shares, finding a Durable Company that is going to be around for decades to come, holding those shares and really being a partner for this company as a shareholder. Longterm shareholder. What are the qualifications for what you are going to buy . Kevin we came out with a 200 million spac, and we really kept it at 200 million. That means we can go after and find a Partner Company that is on the order of 1 billion, and there is a mega spac phenomenon happening in the past 18 months have grown from 400 billion, six hundred billion dollars, 800 billion and beyond, and those are the companies that will be the amazon, microsoft,s and googles of tomorrow. We are looking for companies with solid fundamentals. We are not looking for these moonshot companies. We are looking for those that have fast revenue, highmargin revenue, and really amazing Management Teams in a very unique, contrarian space. Kevin, its hard not to ignore what is going to be one of the biggest ipos of the year. Speaking of investing, you have been an Angel Investor and a lot of Companies Like airbnb. What do you think that will be valued at as it goes public . Kevin it is always good to let the market value these companies. I would just bring it back to, i have been a holder of airbnb for over 10 years and i expect to hold that for another 10, 20, 30 years. It is a great company. So i havent been interested in what the ipo price is, believe it or not. I am interested in, and investors should be interested in what that business is worth 10 years from now. Ofare going to find one those durable companies and hold onto it. My biggest cardinal sin is selling to early, and i have learned that the best thing to old, buy and hold a great company. It is going public at an interesting time, in the middle of a covid19 pandemic. How is that going to Impact Investor demand on the front end, you think, into Public Markets . Great institutional long only investors will look for quality. It will come back. We are already seeing a lot of Global Travel happening on brite is seeing a big dislocation from covid, but people will gather together, people will travel, and we are seeing the future push forward faster through covid. One of the small Silver Linings of that, whether it is food delivery, communications, technology is taking a broader role and we want to help facilitate these great founders and ceos, get there companies publicompanies into the light, and builds durable businesses with this opportunity. Alix what company would you have invested in nine months ago versus now . We mentioned zoom, online video i do not think that would have been sexy nine months ago. Meetings,hink remote being able to do this now, i would take our roadshow. This spac phenomenon is fueled by the future coming quickly. We did two dozen roadshow meetings in a day, which would normally have taken weeks to travel around the country and sometimes the world. This actually fuels the spac phenomenon and why we think there going to be many more opportunities in great spacs coming to market. This is why we think is the here and now. Investors,s asked of why is this startup going to win and grow over time . This is the why now for spacs. Alix 12 investor meetings in a day . That sounds terrible. It,n hartz, we appreciate one cofounder and ceo. Coming up, hedge funds turning bearish on the dollar. The dollar is at a twoyear low. Whats next . The future is in focus. This is bloomberg. Alix the dollar continues to get pummeled, hedge funds are in tworish, the most years. Time for futures in focus. Joining me now is a former fx and rates trader. Instant, good to chat. How much lower can the dollar go . How much more upside is there for the euro . Vincent we could see the euro on a 120 handle or so at a big psychological level. I would not expect it to jump past that. See some option people move in. That is where we get some barrier defense and things of that nature. Throughar has broken 11. 70 on the dollar index. We would like to not see it go too much lower, but this is driven by the euro and sterling, and they have some serious coming up as we head into october, some not so sure they can continue to carry the day so easily. Alix what about dollaryen, 1. 05 . Risknt it is playing a on, risk off game. I am not sure the boj is going to like the dollaryen much more than 1. 04. From the boj and propped it up a little more. It was drivennt, by certain currencies. What i am also struck by is how we have not seen emergingmarket currencies react as much to that weaker dollar. Of its e. M. Has a lot own problems. As you head into the election, stimulus conversation, its that for, a lot of what drives e. M is a positive economic tone. We have a situation in washington now where the democrats and republicans cannot even agree on the price of the stamp. They cannot get past the postal situation. How they are going to get past fiscal stimulus will be a more difficult conversation. Blokes these pelosis birx pelosis spokesperson coming out saying we need to move forward, republicans and democrats need to compromise. That is not a conversation republicans are having right now, so there is a big separation between where the two parties are and where a stimulus plan needs to be. Of a stamp is a 25 billion or 10 billion . Hard to say. Expensive stamp. We also want to get your take on how the dollar relates to other asset classes, we saw a lot of investors now coming into the triple seat part of the mark part of the market, the junk bonds. Can we continue to get a flow into u. S. Assets and not the dollar . Vincent thats a really good question. A lot of it depends on how people come into those flows. They are not always hedge,d so , we doe is a hedged flow see the dollar supported. If we see it continue under price are, those flows can be borrowed and unhedged. You dont necessarily have to into the u. S. Ng dollar to necessarily support dollar assets. The 101 markets think of the trends, and the trend is lower than the dollar. You might see folks taking an interest in buying some outside protection in the options space against the dollar to protect those incoming flows against fixed income. Alix i finally [indiscernible] i feel proud of that. Good to hear your voice. You can catch vincent all the time, 24 hours a day. Coming up, absolute strategy researchs chief strategist will be joining us. What do you do with brexit, lets again once again ramping up. The nasdaq holding onto its gains, but barely higher. The dollar pretty much goes nowhere and yields where do you go with yields . A bit into the bond market, lower yields on the 30, reaching key levels there. Is the upside actually steeper . We will break that down. This is bloomberg. Alix live from new york, im alix steel. We are counting down to the european close on bloomberg markets. Plans toiconic stable cut over 7000 jobs as restructuring and higher food sales are not enough. And in person talks begin again between the u. K. And the european union, the same sticking points remain with now seven weeks to make a deal. Plus, german cases spiked to a fourmonth high. Controlling the virus means controlling the economy. We will check in here on the markets, the big story overall has to be that weaker dollar pushing the euro higher now, we really fix the closing that 120 level, but how much more upside is there for the euro . You have crude up