Flight from siberia to moscow. What we know is he is one of the people that has been writing the most, accusing the government in charge of corruption. T we do not know what was what we dont know is who was behind it. This could be Vladimir Putin cleaning up the place. He had beenow if poisoned, we have to wait but there is speculation out there as it could have implications for investors. Tom one of the stories our team from moscow is looking at as they look west of belarus. Much more. Ritika gupta. Senatorthanks to Kamala Harris has accepted the nomination to run for Vice President. She targeted President Trumps lack of leadership. Lets fight with conviction. Lets fight with hope. Confidence inth ourselves and a commitment to america tobe the america we know is possible. The america we love. Ritika meanwhile, president obama told the Convention President trump has not grown into the job because he cant. The political fight over the post office make clear the way for congress to resume talks on a virus relief bill. Both democrat and Republican Leaders are hinting at compromise. The white house says it is open to democrat demands to increase funding for the postal service. President trump will call on the Un Security Council to restore Nuclear Sanctions on iran, an attempt to kill off the 2015 Nuclear Agreement and force iran back to the negotiating table. Russia, Opposition LeaderAlexei Navalny has been hospitalized with suspected poisoning. Putin politician is in grave condition. Aids believe something was put in his tea while meeting with activists in siberia. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta, this is bloomberg. Tom Stephen Englander out with a note. , thelike Peter SchaffrikMarket Reaction yesterday of fed minutes was way overdone. They look for yields to come back. We see that this morning, lets do the data check. Futures 13. 30 year bond, five basis points. Vix up 23. 92 showing the angst out there. Gold crushed, i think crushed as a technical term. Francine it is. Cfa level three. Stocks are dropping much of the world after the fed continued its concern of the pandemic. That is maybe hurting at the margin level. What i am also looking at is the euro. Slipping on the release of the minutes. I would like to remind everyone that the number of cases of infected with coronavirus is also going up. I want to quickly show you oil in america. 42. 44 after the opec decision yesterday. Tom tonight will be most interesting. By some measurements it has been a 32 year pass for Vice President biden to speak to his party, his nation. Kevin, i look forward to the 10 00 hour tonight, the scheduled speech of the Vice President. Who will he speak to . The country. This is his major opportunity to win over swing voters, rally independent voters to show up at the polls on november 3. Also tonight is chris coons, a democrat from delaware. No doubt a voice that will have a central role and a Biden Administration should biden win. Beyond that, i think more broadly speaking what we saw last night was senator Kamala Harris and barack obama was really about to turn out for the obama coalition. That coalition that propelled former president obama in 2008 and 2016. For joe biden it is about building on that. Tom senator harris speech was scripted. Stay on script or have the ability like obama or clinton to go off script . Tim kevin tonight, he will be largely on script part script. However, what we have seen is that there is not a room nor an audience to play to. There is not a coop scripted moment when hardly any individuals are in the room. The viewership has been trending downward by doubledigit Percentage Points comparatively to the previous election. It is unknown how much of a lasting impression these conventions will have. Can you give us an idea of how we measure turnout . Is there a projection now at how many people will feel the need to vote in november . Kevin that is a great question. When you look at the 2016 polls, particularly in swing states, most polls had Hillary Clinton trailing ahead of President Trump. Trump because the coalition was able to get, reach out to voters who had not showed up to the polls in a long time. They over performed in swing counties in battleground states. When you measure from the gauge ofenthusiasm, more than 90 republicans are standing behind the president. When you look at turnout in terms of democrats, it would seem they have enthusiasm. What we do not know is how the Electoral College turnout the Electoral College map will be comparatively to the popular vote. Francine what do people care about . I know this is a difficult question. Years,ve not voted in 10 what will make me go out and vote . Are the democrats trying to tap into that . Kevin i think democrats are absolutely trying to tap into the soul of the country. All of that is an ethos appeal to voters to shifting the conversation, rallying on issues pertaining to racial inequality as well as more broader inequalities. For republicans, what is motivating them, when you look at what is driving the polls is the economy. Theink that his been one of most fascinating dynamics to watch, especially for republicans. Here, ins go buick ,lint, michigan, obamaromney 57,000 vote obama advantage. The next time around, secretary clinton had a 19,000 vote advantage. Mr. Biden has to get the union vote. The unions votes trump, how is he going to do that . Kevin that is the question he has to answer tonight. I think you will largely be speaking to places like flint, michigan and southwestern pennsylvania, even youngstown, ohio. I think what we have seen from the decline in viewership combined with some of the more viral moments, all of that was designed to tap into the base. Needs to talk to those parts of the country if he wants to win. Tom this is going to be a huge idea. The union vote. The idea how much democrats get back the traditional vote. Thank you so much. Coverage tonight, 9 00. Somehow i think we will go on after that. David westin leading. I am three is i am thrilled to tell you dr. Dean is in the house. Dr. Dean with perspective on his Democratic Party. The gentleman from vermont at 6 00. This is bloomberg. Tom jobless claims at 8 30. An interesting day culminating with the Vice President s speech tonight. We will give you full coverage with david westin. In the equity markets, what to do and what not to do. One of our favorite guests Andrew Slimmon joins us. Ades of purpose spec of decades of perspective on the movements of markets. First do no harm, what should i not be doing . Onrew i think it depends your timeframe. I think the biggest danger is all of the cash that has sat on the sidelines waiting for a pullback because people freak out. They are awaiting. There is so much cash on the sidelines waiting for this elusive pullback to get invested. The worst thing you can do is to not be invested in the market. Dollar cost averaging techniques are still the best idea. Having said that, nearterm markets in my opinion do poor are due for a pullback. I wouldnt lose my head here and suddenly russian the market because i fear of missing out. Tom i want to go back to when you are when you were an analyst. You look at these multiples, price to cash flow, these are not in the textbooks you and i studied, are they . Andrew two things, number one back in thember way late 1980s, someone from that firm said you never buy a Municipal Bond when it yields less than 8 . [laughter] those were different times. I think valuations are pushed higher given the fact where Interest Rates are. I think we are in a permanent higher multiple environments given the rate. Having said that, the stock leadsads the key the economy out of recession. Ultimately the denominator validates the numerator, which is the price down the road. That is all of the danger i see. People say multiples are too highend than then the economy seems to validate the stock market. I hear all the time from investors. There is a disconnect between the stock market and the economy. The disconnect is the stock market is a leading indicator in the economy is a coincident indicator. Ultimately the economy moves toward the stock market. Thatnk we are getting to point, but there is no question given the magnitude of the rally off the low. To economy needs to start kick in here or we are right for a pullback. Somethingis there wrong in the economy we have in seen . Deep becauseis so of this pandemic that frankly we have never experienced before. Unemployment goes up significantly, a lot of companies, even Healthy Companies go bust. Unfortunate commentary is that the stock market does not necessarily reflect those companies, right . You have seen the sounds coming out of some of these big box retailers. Mexican restaurants, they are all reporting great numbers because they are open while the mom and pop pizza parlors are closed. Areck market benefiting at the expense of smaller companies. You are right to the extent that i think the market is vulnerable here given the rally. We are at the point where the economy needs to show up. I do think the stock market is vulnerable. What is the stock market it has never really move like this with bonds, gold is telling us another story, what exactly is the narrative of the market right now . You could argue that given these Asset Classes are not correlated anymore, it is moving in different directions. I think gold is telling you the same thing the dollar is telling you, the same thing emerging cyclicality is telling you. The drawback of unprecedented stimulus is there is inflation out there, we just do not see it in Interest Rates because the fed is an active buyer. I think it is all the same narrative. One of the reasons i think next year is going to be tougher for stocks is because the fed will at some point have to prove it on the signalocus that there is inflation. Tom Andrew Slimmon. We are going to talk about the if this is not enough for you, how about lower equities . Capital markets in the trenches of strategy. Futures 10. There,e bit of stop 23. 76. I have no idea what those phrases mean. London,ncine lacqua in i am tom keene in new york. Stanleylimmon of morgan investment management. Toant to go back diversification was 300 equity shares. Peter lynch revolutionized the landscape, his phrase diversification. Are 23 of the Standard Poors 500 makes up eight 2 trillion apple and the rest of them as well. What do you do about it . You cant tell me you cannot own those, you have got to on those stocks, right . Andrew that is a good question. Never forget that what happened in 2000 was we had high concentration of a few stocks on the s p. , the s p wasbroke down over 20 in 2000. But, the equal rated s p was up. The value in part was up that year. I think the danger is that while people are buying the markets, they are really buying a handful of stocks. The tech bubble breaks. I think you are vulnerable. Look, we were a 20 stock slump and i own one of those stocks but we are having a good ear. I do not buy the argument that if you do not own them you can do well. Research,is a great m. I. T. , when you have a 20 stock portfolio, do you diversify by sector or by individual security . Inherently i think you should diversify by sector. What is most important in any portfolio is you do not have one debt. Even in a 20 stock portfolio, you can have stocks that move under various things. Like some ofll these Asian Technology stocks, but i find some of these in the United States intriguing because commercial real estate may not come back, but there are plenty of areas that could come black that could come back. There are plenty of stocks that could come back. The question is how does real estate and Asian Technologies move together . They dont. They are different sectors but also have a very low price correlation. To me, that is the most important, thinking of ideas that do not all move together. What worries about the s p is that it is all about the same concept which is large cap tax. How does u. S. Politics come into this . What exactly is priced in right now . We have people saying it is a second term Trump Presidency that is supporting these stocks. What happens if biden comes in . Biden comes in, taxes go up. I always like to point out that in 2013, barack obama raised taxes and 2013 was the best year we have it we have had in the stock market. Im not sure that the stock market reacts quite as negatively. Find the story line people pursue is based on their politics. Whether they believe the market is going to go down or not. Think my personal view is that people spend way too much time on politics and not nearly as much time on the fed. Look at today. The market is lower because the fed wasnt tom we are running out of time. Andrew slimmon with morgan stanley. We have got to get him back on again. Stay with us, dr. Dean next. This is bloomberg. This is bloomberg surveillance. , harris introduced herself to the nation. Senator embraced her place in history as the first black and indianamerican woman on a major president ial ticket. Harris spoke of her upbringing and what she learned from her mother. I accept your nomination for Vice President of the United States of america. Committed to the values she taught me, to the word that teaches me to walk by faith, and not by sight. Harris largely stayed clear of attacks of President Trump but did say the incompetence makes us feel afraid. President trump failed to criticize qanon. Believe the world is run by satanfollowing pedophiles who are plotting against the president. They will hear arguments over the constitutionality of the Affordable Care act. Democrats want to make health care a central issue in the campaign. It is another sign that north koreas economy has been battered by sanctions, flooding, and the coronavirus. Kim jongun unacknowledged the countrys Development Goals have been seriously delayed. Facesd north korea unexpected and inevitable challenges. Almost 24 hours a day on air and on quick take. I am ritika gupta. This is bloomberg. Francine thank you so much. Perhaps the most high profile determination story in silicon valley. The former pinterest ceo sued the company last week. She claimed she was fired for speaking out about discrimination, paid less than male peers and left out of key decisions despite being the number two executive. Pinterest has faced employee walkouts and calls for change. She shared her story. First coo and i was looking forward to being a force to drive change in a company that cater to women. 70 of the women users were realizedt i ran fairly quickly that while i was giving the keys sit at the table i was not in power to use my talent to drive pinterest forward. If it happened for someone at my level in tech, it happened too many women across organizations. You describe a culture that is demoralizing, secretive, toxic. I would love to hearing your voice how did you experience your that culture describe it. I was not invited to meetings, not involved in management decisions, and i was not even on the ipo roadshow and i had experience being on the ipo roadshow. I was in a company that did not value my perspective. Raise my voice, instead of being applauded for strong leadership, i was criticized for it. I made it to the table, but i was still expected to conform to gender stereotypes and treated differently than my male colleagues. That is what the story is all about. Your description of leadership is damming there was constant backstabbing, gossiping, even though you were the coo and number two, you see the on the only way you could get things done was by hiding things and saying what you really thought was dangerous. What was it aboutbens leadership that you feel was particularly problematic . Francoise i do think to rely on the same group of people and not hearing different voices at the table or when different voices are actually coming forward, not listening to them important it is very that people understand that hiring women is actually not enough. Making a place where they can be candid and share their perspective is even more important than just hiring them. I wanted to make this point because even in 2020, it is still happening. So, that is really what i pinterest and i can only talk about my experience. Emily a pinterest spokesperson told us in a statement we remain committed to advancing our culture to ensure pinterest is the place for all employees feel included and supported, which is why there is an ongoing independent review regarding our culture, policies, and practices. We are reviewing the complaint file. Our employees are incredibly important to us and we take all concerns brought to our attention seriously. Some the things you allege, your schedule was less favorable than colleagues, were paid less than men, yet you drove Company Revenue to over 1 billion from 500 million. You, you say, in aminute video call, saying you are not collaborative. What was going through your head in your heart at that time . Francoise it was a shock. Clearly i did not see it coming, obviously. Timing when wee were trying to figure out how to interact with our workforce [indiscernible]. Yes, it was a shock. Tom emily chang with an important interview there were on pinterest and their former chief operating officer. Features improved. We were negative 12. We are negative nine right now. The vix 23. 67. Yields not as grim as they were an hour and a half ago. At five basis points on the 30year. Coming up, howard dean. This is bloomberg. Senator harris i have been guided by the words i spoke the first time i spoke in a courtroom , harris for the we can do better and deserve so much more. We must elect a president who will bring something different, something better, and do the important work. Lets fight with conviction. Lets fight with hope. I have fought for children and survivors of sexual assault. I have fought against transnational criminal organizations. Banks andthe biggest helped take down one of the biggest forprofit colleges. I know a predator when i see one. Lets fight with confidence in ourselves and a commitment to each other to the america we know is possible. The america we love. A president who will bring all of us together black, white, toino, asian, indigenous achieve the future we collectively want. I accept your nomination for Vice President of the United States of america. Tom the senator from california, and tonight we will hear from Vice President biden, our special coverage from 9 00 p. M. Until 11 00 a. M. With david westin leaving leading our coverage. We know for certain the gentleman from delaware has to go out and find disaffected republicans, including the republican dean family from years ago where howard dean wandered from the gop to the Democratic Party and had a sterling career as governor of vermont, and former president ial candidate. We are thrilled he can join us. The Vice President has to go out and find disaffected republicans . Howard actually, he doesnt. He is going to do that, but he doesnt. Betteris to do is get a turnout and we are well on our way to doing that. This is a convention aimed at republicans who want to see honesty back in the government and that is why you had to work figures, republican colin powell, cindy mccain, john kasich, giving permission for disaffected republicans to vote for joe biden. I dont think conventions will ever go back to the way they were. Lessconvention was expensive with this format. Tom how do the democrats move forward to get the vote out and get those disaffected republicans . Howard that is why you are seeing so much hassle about the mail system and trumps attempt to disrupt the mail. It will clearly be mailed ballots. In vermont we had the highest turnout in primary history. The primary vote was up Something Like 30 over previous voters. That is unheard of. Voting by mail is convenient. Utah andes, including oregon, at the opposite ends of the political polls, have been doing this for a while. It is very successful in people like it regardless of their party. That will be a critical key to having a post office run and function properly, and that is a big get out to vote total. To vote is it easier by post than in person . Howard it is much easier and the coven epidemic or you have to worry about getting a pretty serious medical problem. It has always been a problem, more recently because the Voting Technology does not work in this have adopted they a system or you cannot reach out. You keep staring at the numbers. Some states do not use that technology. You can see the ballots that get counted by machine, which is the right way to go. Has been a professional voting has been a problem since 2000 the controversial bushgore court case. Francine what is the message that democrats need to make sure people turn out and vote . How do you energize people . Howard trump is the energizer. Elections, when a president is running for reelection, is a referendum on the president. Trump is our best weapon. He is incredibly disruptive, certainly the most dishonest president we have had, and over the years that is quite a statement to make. People will want to vote against trump. They do want decency. One of the great things about bidens candidacy, even though he is 78 years old, he is a dish recent guy. He has empathy, which trump completely locks. There is a huge contrast over personal styles. We always talk about issues, but the real issue is that this person care about people like me, and joe biden does, and trump doesnt. Tom where do you sit with the idea of shocking the nation in october by starting to announce cabinet members . If this is a President Biden that has to delegate authority for whatever the reason, can he or a political playbook and say soandso will be my secretary of state, soandso will be my . Secretary of treasury . Howard that is controversial. I thought about that when i was running. The reason people do not do it, i think, is because there is some concern if you do that it appears you are trading your cabinet appointment for support. I have always heard this. We thought about doing it ourselves. That was an excavation i got from a lawyer. That may have something to do with the fact that candidates just dont do that. Tom what is the best process for the Vice President when he debates President Trump . We saw the debate of trumpclinton . How should biden debate the sitting president . Needs to be himself trump will say outlandish things about conspiracy theories, drinking bleach, and god knows what else, and biden has to be himself. Whatever his position on the political spectrum, he is probably more conservative than i am, he is just a good guy and people would like to have a gnome a president after four years of reality television. If he makes a flub or says something that is out of line or out of wet, yet been doing that 35 years. That just makes him out of whack, he has been doing that for 35 years. It just makes him more human. Francine there has been more googling on conspiracy theories. Andad a story on qanon President Trump did not say it was nonsense. Is it taking ground, with a lot of people believing in conspiracy theories, or is it a small part . Part, but is a small it is bigger than it was because trump promotes these conspiracy theories. He has energized what i call the crackpot right and it is a problem because people believe this kind of stuff. You have two americans that died poolse they drink swimming cleaner because trump recommended that is how you are going to get rid of coronavirus. I hate to say this i dont hate to say it, it is true. I think trump is crazy. I think he is mentally unbalanced and he has been mentally unbalanced most of his life. Tom we did not have you want to talk politics. We need to get medicine out of the way. We have a new solution for the virus a derivative called oleander the president has not endorsed it, but said we will look at it end look at it. Can you speak to our audience about the pathology on these easy solutions to a virus . Howard the pathology is there are no heating solutions. Our fantastic scientists in many countries around the globe. Globe. There are hundreds of vaccines, several of them will work. I think the most furthest along investors on at Oxford University in the u. K. That appears to be far advanced and the drug company will do an unusual kind of test, a challenge test, and they are to take theng doses risk of making something that is not going to work. I think it will work. It certainly is not going to be there by the election, but it is possible it will be there by january, and it will make a difference, and it will make a difference right away because there are 7 billion the world and at least 60 or 70 have to be vaccinated to get heard immunity. These crackpot theories the president theshould keep his mouth shut, but that is clinically impossible. Tom howard dean, to appear Vice President biden speaking to the nation and to his Democratic Party. Jason farley of Johns Hopkins. We do that next. This is bloomberg. Futures 10. Is bloomberg surveillance. Tom and francine from london and new york. Bloomberg has developed a partnership with a leading authority on covid 19. Johns Hopkins University has been at the forefront and we bring you insight from Infectious Disease and Emergency Preparedness pet im delighted to be joined by jason farley, Johns Hopkins nursing professor. I know Johns Hopkins and you specifically are looking at research and trials. If there are two things you would like to know about the virus that would help in the vaccine or help in treating patients information we need in the next three to four weeks, what would that be . Neede continue to be more data on broadly neutralizing antibodies and its responsiveness and the durability of the broadly neutralizing antibody. We continue to get more trickles of immunological studies that suggest that patients are even with mild disease producing these antibodies, which is a good thing. The durability is the question. That is number one pet we also need more data from convalescent plasma and the utility. We have some mixed studies. Some showing great benefit, other showing possibly no benefit at all. Convalescent plasma is another area where we need more details. Francine will the fda be very prudent in approving it given some of the things what treatments work, and if the fda is taking all the precautions to make sure people are safe, given the conspiracy theories and all the things going on out there about what works and what doesnt work . Jason importantly, we saw the fda rush to approve the emergency use authorization for hydroxychloroquine, which ultimately proved in, that Clinical Trials and safety studies not only be ineffective, but have increased risk of toxicity, as was anticipated by the medical committee. With convalescent plasma data that is emerging, the group, along with dr. Fauci and dr. Collins, the head of the nih, wanted to express their concerns about being too optimistic and wanting this to have strong evidence before we massively rollout a treatment that is yet unproven. There are signals that it is of benefit. Those signals do not translate into true, Clinical Trial evidence, which is our gold standard. Jason, what are the would ask a school to decide whether you would send your kids back or not in september . Jason that is a great question. I have nieces and i have been having the same conversation with my brother and his wife. His wife is a schoolteacher herself. They are both grappling with the fact that he works at home, has worked at home even before covid, and as a school teacher, her School System has chosen to go back to work, and they are debating their inability to leave their sevenyearold at home and do homeschooling, so they are thinking about things new the incidence of infection in our community, how well can they social distance at school, how much can they teach and coach their sevenyearold to wear their mess, wash their hands, and keep this math, wash their hands, and keep their distance . Distant parents r a difficult place. School districts have to be vigilant. We have seen schools that have opened and closed. We have seen this across college campuses. My own alumni francine jason france jason farley there of Johns Hopkins. Thank you. Alibaba falls 4 . We are seeing a lot of divergence within the market in terms of valuation. One where youe is have a partnership, a monetaryphysical partnership. We got less supply. Weve got demand being stimulated. That should lead to higher prices, otherwise known as inflation. If you have a ton of cash, youve got to step up and put some in. This is bloomberg surveillance with tom keene, jonathan ferro, and Lisa Abramowicz. Tom good morning, everyone. Simulcast on bloomberg radio, bloomberg television. Lots going on here, including jon ferro and Lisa Abramowicz out, and only one person can replace the two of them. That is anna edwards in london. We are thrilled she is with us today. Off of the fed minutes, the markets adjust, and they reju