What is so interesting is where central bankers will be. Mark carney, the governor of the bank of england, it is just out across the bloomberg that he has finally landed. I thought he would be running the toronto maple leafs, but he will join the venerable brookfield of toronto. This is one of the Sterling Companies of canada, 100,000 strong. Esg. E will go all lisa hes going to be leading the environmental and social governance Investment Strategy at brookfield, which is eventually expected to rival the size of its real a structure businesses. The question is, what does this mean . Tom this has clearly been one of the leading efforts of the former governor of the bank of england. Our Francine Lacqua numerous times in interviews on esg as he led the bank of england, i would say more than any other central bank. Maybe i would get a hat tip to the bundesbank as well, but clearly leading on esg. I heard him speak on this at davos as well. This is to me a very natural outcome to see him join brookfield, of course, with all of their Real Estate Properties in the heritage of toronto as well. I also think he just joined to get their seats at maple leafs garden. Lisa will you try to position for some . Tom maybe we could win the canadians are in town. What weve got right now is a churn to the market, looking at jackson hole. Michael mckee with that Esther George interview in the last hour, really setting up the Virtual Conference in the speech tomorrow by chairman powell. Really quickly before we get to dean curnutt, what are you looking at this morning . Lisa im looking at bond yields, trying to understand how much Inflation Expectations ticking up says ahead of the jackson hole conference. Is this a bet that they are going to be successful in igniting inflation . If that is the case, where is it going to come from . Is it just printing money . Tom dean curnutt is at macro risk advisors. He does really sophisticated, fancy stuff around capturing volatility, and what you do is you traded. You buy volatility or you sell volatility, and the trademark and the benchmark for that is the vix that we quote. Curnutt, the vix right now 22 just ints broken celebration of you being with us. Where should the vix be right now . What is your guess on the direction of the vix relative to the market . Dean well, that is a great question, and i think theres a couple of ways to answer it. The simplest way is just to look at the daytoday movement in the s p, what we call the realized volatility. If you look at that over the sot 10 days, its only 7. 3, its just this series of quiet days in the market. Over the last month, it is 10. 3. So the vix at 22 is trading two to three times what the movement in the s p would actually justify. Theres always a little bit of a premium, but really what is happening, i have to say it is one of the most fascinating times to look at volatility in the equity markets because theres an event that has some import in early november that sticks out like a sore thumb in terms of ricin. Market isords, the pricing vix futures so contingent on the end certainty around the election, it is causing some substantial dislocation. So to answer your question, the vix should be much, much lower relative to the movements in the s p 500 then it is, but the election is holding every thing up. Tom how money figures lower should it be . I dont want to take you out to tenths or hundredths, but should be at 19 . Should it be at 15 . Dean you could easily argue the vix should be in the 14 to 18 range. Tom wow. See how i did that . I got it out of him. Lisa for people not necessarily looking at the exact level on the vix, what does this mean in terms of trading volumes, and terms of trading activity . Theres been this feeling in markets that the fed has your back, they are going to suppress volatility, and that is going to make the riskadjusted returns more attractive. Does that hold, even though there is that blip up around the november election . Dean vol and volume tend to be pretty correlated. People change their mind when theres a lot of volatility. So the absence of that is leading to a pretty quiet latesummer, with the notable exception there is quite a bit of activity in upside call options in some of the tech behemoths. As really the only place in the market where you see a substantial amount of volume, is the momentum stocks like tesla, where we are seeing a lot of volume. So it is a quiet period. I think for the folks that use options, it is a bit of a conundrum. As i said, options are expensive. Thinky an option when you insurance that comes with just paying the premium is a good deal. Its really not a good deal. The price of the option relative to the movement in the s p, theres a big disconnect there. But secondly, people be remain worried that the bottom could just fall out of the market. We had just well past the peak of the crisis, on june 11 the market fell 6 in the s p out of nowhere. I think those types of real oneday shocks still linger large in peoples minds area even though options feel like it better sale then to own, people are still worried area so what you see is just kind of a standstill and not that much volume. It is slow on every front. Going forward, what we have seen is volatility, this idea that it can seem like a very calm market, but all of a sudden you that incredible spike, and that is what you were referring to when he said that things could get a little bit more spicy later on. What is the main asset class to look at, the main trigger point that could fuel that kind of vol . Dean theres a couple of things that will cause that. One is positioning itself. Sometimes the market trips itself a. It is not the economy, not something on the geopolitical side. It literally is positioning. I dont think that right now there is a substantial one sidedness of positioning and things like the vix or the s p that might cause that. In early 2018 when the vix blew up, it was really about that melted down because it had gotten so big. Gold. I would look is in talked about this real interesting dynamic where inflation is rising rapidly. Gold is very negatively correlated to real yield, and as we look for hedges for folks, the market price is the amount. The market kind of sees the debt demand for hedges coming and makes insurance on the s p very expensive, but i would look to gold. I think there are some really interesting opportunities to use options. Nothing crazy, just things like upside calls out to december. I think theres a couple of ways to win. Potential unwelcome reaction to a biden presidency if that the u. S. That he will be less business and Capital Markets friendly. The second, i do think it is a long up at gold is paranoia assets. It does well in chaos. This election is not setting up that well for a clean transfer, and i think that is going to be a worry for people. Tom bobby from x capital just eat amount be just emailed me and said, wheres the capital . We need a change that get going. Into is your gamma september and october . Dean you guys have been talking about the yield curve, but when we look at options, it is on the right side. That is one area where implied volatility is pinned to the floor. It is no wonder Jerome Powell is basically telling us what the playbook is going to look like, which is dont expect any change for years to come. I think if you step back and think, what if things actually go right, it is hard to surmise, but suppose that we get great advancements on the vaccine front, and suddenly the notion that fed policy is stuck at zero for years to come is revisited. What i am saying is the common nation of incredibly low yields out to 2, 3 years, and incredibly low implied volatility come up what we have been telling clients is use optionality to protect yourself not only against bad scenarios, but against scenarios that would be good for the economy, but could potentially derail some aspects of the market if yields move higher very quickly. Tom dean curnutt, thank you so much. I had no idea what he said. It is so fun talking dynamics with dean curnutt. Youve got alpha, beta, delta, gamma, all of these greek. Etters but lisa, gamma is what we are all searching about area. Lisa i think you are trying to relive your fraternity days by talking about gamma. You bring it up every time simply to talk about the greek alphabet. Tom im looking for some chi and some psi in there as well. On the equity markets, up three basis points on yield. ,ean curnutt moving the vix 21. 72. You heard him say 14 to 18 as well. Libby cantrill does not care about gamma. Shes with pimco, next. This is bloomberg. With the first word news, im ritika gupta. A warning today from the National Hurricane center. It now says hurricane laura will rapidly strengthen to a category four storm with winds of at least 130 miles per hour. It is expected to make landfall late today or early tomorrow along the louisianatexas coast, and could bring with it a lifethreatening storm surge with a wall of water 15 feet high. Ed has already disrupted oil and natural gas operations throughout the region. On the second night of the Republican National convention, speakers tried to humanize President Trump and highlight his leadership. First Lady Melania Trump spoke from the white house rose garden. This trump i dont want to use this precious time attacking the other side because, as we saw last week, that kind of talk only serves to divide the country further. I believe that we need my husbands leadership now more than ever in order to bring us back once again to the greatest economy and the strongest country ever known. Secretary of state mike pompeo said the president has made historic progress towards middle east peace. In wisconsin, the governor has declared a state of emergency. There is a third night of violent protests in kenosha over the Police Shooting of a black man. His misses were vandalized and buildings set on fire. Shots were fired in a confrontation between protesters and a group of armed men. Two people were killed, and one was wounded. That trade deal with china may pay off for farmers in the u. S. Area bloomberg has learned that aging is set to buy record amounts of american soybeans this year. Global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Payroll tax cuts for higher wages, income tax cuts for the middle class, Capital Gains tax cuts for investment, productivity and jobs. Held chinaident has accountable for covering up the china virus and allowed it to spread death and destruction in america and around the world. Trump and myms. And who willhave not stop working day and night. Tom there are some of the forces of day to of the Republican National convention. We will have that tonight for you with david westin as well area Vice President pence the key speech tonight. Right now and arguably the interview on the day on what doesnt matter at the conventions, Libby Cantrill joins us, pimco head of public policy. Springs in arkansas are doing well. They are removed from all of this trauma. Then you go to kenosha, wisconsin and the uproar of the last three days, including deaths last night, and in between, theres a huge part of the country desperate for stimulus. Can we get stimulus once this convention is over . Libby good morning, tom. Thatve been talking about additional stimulus was a question of when, not if. That when has taken longer certainly than i thought it was going to. The sort of perennial stumbling blocks around the level of benefit, specifically as it relates to unemployment insurance, local and state funding, a big issue for democrats. They got very little in the c. A. R. E. S. Act, 150 billion dollars for states and cities. Democrats want more in this next round. And then funding for usps, these are the obstacles really to getting a deal. I think the Inflection Point will likely be the end of september. That is when congress has to come together to pass a funding bill to avoid a government shutdown. So we may have to wait until then, and again, we thought it was going to happen sooner, but some of these partisan issues have gotten in the way. Mentioned abramowicz american airlines, taking down 40,000 with early retirement. Our politicians in your world moved by actual firings . Libby i think if you talk to folks on the hill, there is an acknowledgment that certainly, the economy needs another shot in the arm. I think these headlines certainly underscore that, so i think there is broader acknowledgment that the Political Risk in particular going into the election without having additional stimulus, speaking to your point, just the headline risk of going into the election, companies announcing more firings is just too great for politicians. So i think it will come together to pass something. It is just taking longer than what we expected. Much we are not hearing noise out of washington other than the rnc and the dnc, and yet every week, they say there is a hurt to the economy due to the lack of extension with this program. How do you help them gauge the risk of a prolonged negotiation process . When can they expect some kind of deal to get done, and what are the consequences of the delay . Libby the earliest at this point, given that folks on the hill are out for their usual august recess, really is going to be the middle of september at the very earliest. That is when they come back, so that is really predicated on a deal being struck before then, but probably, as i said, late september. That is when congress has to come together to pass the funding bill to avoid a government shutdown, and it looks very likely that these things are combined. From an economic perspective, we are seeing some states apply for that added benefit that the president authorized under his executive order. There are some issues with that, and of course, that benefit is about half of what we saw under the c. A. R. E. S. Act, and it only lasts for four to five weeks. , obviously. A risk we are seeing some of the consumerry data, confidence lagging. You are seeing other data metrics that the economy is once again slowing. So theres a broad notion on the hill that something needs to be done. It is just a question of how they get there. Lisa is it underpriced risk that it will take a while . Libby the market does seem to be pricing in some additional stimulus, so certainly that is a tale risk. If everything parts apart if everything falls apart and we dont have a deal, folks will be campaigning for the election, and then it does look area unlikely that we get something until after the election. Risk. Ertainly is a tail it doesnt seem that markets are necessarily focused on that. Tom in your world, is there a middle ground, a middle democrat, a middle republican . Do they had a voice now and r . Ter novembe libby there are certain ce constituencies on capitol hill. Theres the Problem Solvers Caucus aimed at that demographic you talk about. This will obviously be predicated on the election outcome, but something i think is very important, especially for the markets to keep in mind, if there is a democrat sweep, if joe biden is elected to president , democrats control the house and win back control of the senate, you have to make remember, those are from purple districts or even read districts or red states. A moree will be moderating force within the democratic already who are probably going to be more inclined to start reaching across the aisle. I dont think centrism is totally dead, but obviously over the last decade or so, our politics have become so polarized. Gerrymandering i think has exacerbated this, lack of earmarks has exacerbated this. Tom Libby Cantrill, thank you so much. I want to make some clarification on the hurricane. We had an official headline of rapidly moving towards a category four hurricane. That has changed. Moments ago, we have a headline according to the nhc that hurricane laura becomes a category three major hurricane. I want to make clear, that is still an abrupt change from where we were two or three days ago when the hurricane was below cuba, so it is a tense morning down on the texas and louisiana border. I really cant say enough about the need for the stimulus from where we sit. I know we are biased within the threes it codes we live in, but the immediacy of need for stimulus, we are hearing that from toomey economists. Lisa we saw that last week at the unlemon claims that were above one million again, expected to be about a million yet again this week. Still so much going on out there that indicates further job cuts to come. Tom we will see that throughout the day, and of course, Kevin Cirilli im sure well get right with others on the Stimulus Team as well. Geography between houston and new orleans. Borderhe texaslouisiana , that northsouth demarcation, forever identified with Galveston Texas and port arthur. They await a storm. Coming up, peter hooper of Deutsche Bank. This is a simulcast. Its bloomberg. 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. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Tom bloomberg surveillance, a simulcast. Bloomberg radio and bloomberg television. Jonathan ferro is on a well deserved sabbatical. Lisa abramowicz and tom keene giving you the data. This is beneath the headlines, but it is important to look at durable goods and camp goods, nondefense exiphone, examazon and exminecraft. Michael mckee with our economic report that matters to the pros. 11. 2 , new orders up the forecast was 4. 8 . Last month they were up 7. 6 . A major surprise. X transportation, new orders are up only 2. 4 . I will take a look into the data. It looks like probably cars and aircraft. Transportation equipment orders up 35. 6 . New orders for Motor Vehicles up 29. 9 , and nondefensive aircraft, your boeing number, we do not have a number for that. They did not provided. We know boeing had a loss of 40 three quarters last month and the prior month they were down 467 . That is interesting we did not get that. The number everybody wants to see his capital goods orders and nondefense ex aircraft, the proxy for what goes into gdp per business spending is up one point 9 . Slightly better than expected. The consensus was for 1. 7 . Up about half of what we have in the prior month. Up 4. 3 . An ideas, which give us of what the first month of business spending was in this quarter up 2. 4 . Down from june. Tom these are pretty good numbers. Yields move, and the two year yield moves up almost one basis point. Yields higher. Lisa i am looking at the 30 year yield breaking out. Can you give us a sense of the significance of this data point, the idea that these are the expensive items Companies Invest in over time. What does this indicate about the researching demand and the researching willingness of companies to spend money . Michael giving you the caveat we always get with durable goods , they are volatile and get revised a lot. The it does suggest is Manufacturing Sector ramped up a little bit in july, particularly for autos as the Assembly Lines came back on. We are talking about the seasonally adjusted numbers. Plantsy, weve seen auto shut down in july. We did not get that this year because they had already been shot. That may have had an impact on this because of the headline number. That is why you want to look at the capital goods number. It is ok. We came back a little bit that it is not a barnburner. We had low inventories. If demand comes back, they will have to make more stuff, but at this point is not huge. Tom what you see on thursdays jobless claims . Michael that has become the number and the consensus so far is for one million exactly. Int would be the 23rd week 24 where we saw a million or more. On in thiss marching strange 2020. Michael mckee on durable goods. He will be with us for full coverage tomorrow as well. As we look to jackson hole and the american economy, peter hooper has provided extraordinary leadership at Deutsche Bank to do the hardest thing in economics, which is to put a Team Together where you lean forward. From london to the u. S. Economic team, how has your team adjusted in the last days . Are you marking down q3 and q4 Economic Growth . Peter we have not marked down growth. Slip,yesterday confident the numbers have been coming in stronger. Despite the setbacks on the tous side, we were inclined mark up our second half numbers just a bit in light of data coming in. Had an initial discussion on the fiscal side. If we do not get resolution, we are assuming 1. 5 trillion dollars in fiscal support coming along soon. If that does not materialized, it is a very different picture. Assuming we get the fiscal support, the numbers so far say our 5. 5 Growth Numbers decline for the year may be a little too weak. s durable goods report shaded slightly on that side. About the jobless claims number tomorrow which is expected to be the 23rd reading at one million or more out of the past 24 weeks. Where are you seeing unemployment ending the year at this point given the ongoing announcements of layoffs we keep hearing from Major Companies . Peter we think it will get below 10 , but not by much. Somewhere in the 9 range. This will be a slow process of getting unemployment down. Certainly gdp growth, the level of gdp not getting back to previrus levels until 2022. Onwill be a long slog improving this labor market substantially. Lisa the quote of the year possibly came from Vincent Dillow are in a story from sarah you saw humans cut in droves. What does this say in terms of wage deflation . Peter it depends on the sector youre looking at. There are shortages in some areas. We are seeing increases, but overall in the service sectors, where youve seen a sharp back and demand that will persist for some time until we get a vaccine that is widely available. We are not assuming we will be there until the middle of next year with something widely available and effective. Negative for wage inflation, certainly. Household income has gotten a huge boost on the fiscal side. Youve seen incomes rise substantially. That points to the critical importance of getting something done in the weeks ahead, getting a resolution on this support package. If we do not get it, we are looking at the possibility of a doubledip recession in q4 and q1, and further negatives on wage inflation. Tom this is an incredibly important statement by dr. Uber. Let me explain this by dr. Hooper. Let me explain this. I know it is squishy. The idea of going back into , across theeter country of immense inequalities, how have our politicians not acted so far . We see action in germany, action in the united kingdom, and we cannot seem to get it done to avoid the hooper recession. Recession ifoper we get no further fiscal support. If the vaccine does not materialized until well into next year. We are looking at clear negatives. As i said the data up till now had been more positive, but the slippage on Consumer Confidence and the possibility of former setbacks on covid19 as we go thesehe winter months, all say we are looking at the potential for a more negative picture than is built into the market at this point. Lisa one of the confusing points for me is we talk about the potential for a doubledip recession and yet the support we have seen from the federal reserve, from easing of credit standards, we are seeing a tightening in lending standards by banks and this comes from goldman sachs. They put out a report showing the fastest pace of tightening in loans to businesses over the past couple of months, going back to the last recession. Does this concern you . Is this the banks seeing something the rest of the market is not . Peter it is interesting. Those lending standards have been tightening, as you would expect when the Economic Situation deteriorates. At the same time, the default rate, which normally catches up to these kinds it has not moved that much. The aggressiveness of the fiscal response we saw initially and the support through ppp and the feds main Street Lending facility waiting in the wings it has not been a factor yet, but we do expect it will become more important all of these are leading to a disconnect between this tightening of standards and the eventual fallout in terms of what will happen as the credit crunch hits businesses. Tom peter hooper with Deutsche Bank, greatly appreciate it. Look forward to your thoughts on jackson hole. Head of their economic research. This is an absolutely historic headline for anybody who studied europe. Allng out of world war ii, the trials and tribulations of europe, avoiding the memory of world war i and world war ii. Germany will use funds from the European Union to trim a modest 18 billion of their new debt. Lisa, there are many people that never ever thought you would see that headline. Lisa the increasing integration of the European Union. It has been one of the themes of the 2020 era, which has been so strange and part of what has been giving the euro a boost. The idea that the eu is coming together and this headline seems , with germany and the eu being that much more intertwined. Tom the euro weaker, perhaps office headline, 1. 1781, a weaker euro over the last 20 minutes. Market doldrums, maybe. Tech is green on the screen. Off durable goods, yield surge. David rubenstein of Carlyle Group and his wonderful interview series coming up next. Looking today at the dollar, stronger. Getting some highstrength to the u. S. Dollar. 1. 1779, again 106. 43. Ony with us, the simulcast radio and television. Ritika with the first word news, i am ritika gupta. Hurricane laura is taking aim at the texas louisiana coastline. The National Hurricane center warns it could be a lifethreatening category four storm with winds of 130 miles per hour. It is expected to make landfall late today or early tomorrow. The hurricane has already disrupted oil and Gas Production in the gulf of mexico. It could see some of americas biggest refinery shut for months. Mike pompeo highlighting President Trump leadership in his speech to the Republican National convention. He says the president has pulled back the curtain on the predatory aggression of the Chinese Communist party. China president has held accountable for covering up the china virus and allowing them to spread debt and economic destruction in america and around the world. He will not rest until justice is done. He has ended the logistic the ridiculously unfair trade relationship with china that is punched a hole in our economy. Those jobs are coming back home. Ritika pompeos speech appeared to violate state guidance that prohibits political activity while on state travel. U. S. E united nations, the has lost its bid to reimpose sanctions on iran. The president of the council neglect rejected the trump administrations demand. All but one of the Security Council members said the u. S. Proposal was illegal. 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. I think there is a lot of unique opportunities available to people who are creative, who have a vision for the future. Years we will look back and there will be World Class Companies created by people we are thinking are crazy right about now. Tom the gentleman from pittsburgh, mark cuban. University of pittsburgh and on he went to huge prosperity, including invigorating enthusiasm without an should be in sports with his dallas mavericks. An interesting interview with David Rubenstein made interesting by David Rubenstein. How do you prepare for mark cuban interview . s book, i read that. He has a lot of press. I read all of the articles about him. He is a person that is very smart. If you do not know him you might think he is a bombastic person who spouts out things at basketball games. He is a very smart person. He built a company way ahead of the technology revolution, sold it at a big price, and managed to make certain the prophets did not go away when the tech bubble burst occurred. He has made a lot of money but he is very thoughtful. I think the interview was much more impressive than i thought it might have been. Gaugingve been good at politicians to be. There is discussion of mark cuban entering american politics. Any indication of that . David like a lot of people who make a lot of money and do not know what to do after that they say why not run for president of the United States . This idea has occurred to a couple of people. Mark cuban actually was a friend of donald trump, and donald trump when he was running for president talked to mark because he thought mark was supporting him but ultimately mark decided not to. Mark looked at running for president and concluded he would not get very far. His family was not in favor of it. He is still only 62 years old and could run again. Lisa do you expect mark cuban 2024 . David there will be a lot of people in 2024. The idea that a wealthy business person who has a lot of money to spend could run for president of the United States and win is not as ridiculous as it once was. I would not rule anything out. Mark is creative. What he has done with the mavericks is impressive. He bought them for 280 million and it is probably worth 2. 5 billion now. The biggest problem he has in his life, i said everything seems to work perfectly for you, what problems do you have . He said i have a teenage daughter and managing a teenage daughter is more problems. Tom that would be true as well. Time for a surveillance correction. I mentioned the pittsburgh affiliation of mr. Cuban. Emails said he went to Indiana University. Pick it up from there. David he grew up in pittsburgh, but Indiana University had a Business School he could afford. He is from a jewish family. His name was changed somewhere on ellis island and he went to indiana and made a fair amount of money as a bartender and so forth and then moved to dallas because the weather was good, he said the women were beautiful, and he wanted to have a nice lifestyle and there were some jobs. He started a number of businesses and he has done quite well over many years. Everything he touched has worked out well. Lisa when he was talking about the nba he was saying he would welcome a jewish player or any player, even from mars, if they could win. Talking about all of that money mark cuban has, what is he buying . David interestingly, he has been a longtime owner of netflix shares and amazon shares, and he would say a large part of his net worth is the money he has invested in those companies. He has been a stock trader, he knows a lot about tech stocks, but he says right now there are not many tech stocks to load up on the good ones. Tom this is important. I want to rip up the script. It is so important. You mentioned something important. Guys entrepreneurial and maybe like Carlyle Group with private equity, but so much of the wealth construction of these people, including mr. Buffetts very successful apple investment , is making conventional Share Investments. Do we underestimate that in the media, that that they just make sound traditional Share Investments . David the tradition has been that if you make private investments, you can add value to them and the return will be greater, the return has been good in the private equity world. If you bought amazon, netflix, apple, those companies five years ago or three years ago, six months ago, they wouldve done spectacularly well. If you take those companies out of the stock market index, the indexers are not doing as well. It was my big mistake after the ipo that i sold my shares in amazon. Tom that is ok. I was in triple leveraged. That is how well i did. One of the opportunities with all of this cash sitting around, the trillions of dollars of cash on the sidelines. David it depends on what youre interested in. I think the public shares are pretty high right now. I would be a little leery, and i think that after the election, whoever wins, youll probably see some softening of the market. I think the federal government will probably not be able to put that much money in the economy compared to what it has already done. In the private equity world, i think there are some opportunities, but nothing is cheap. It used to be you buy a company in a private setting for 89 times cash flow, today they are 14 or 15 times cash flow. You have to accept it or you will not be buying anything. Tom David Rubenstein. Thank you very much. Mark cuban, peertopeer conversation, tonight at 8 00 p. M. Before our Campaign Coverage with david westin. These guys do this or do that, but they are just like everybody else, they are trying to find shares to buy and sit on. Lisa and find the right shares. Right now the right shares have been anything tax, anything part of the new economy. There was a headline that caught my attention that is related to big tech. Mike pompeo speaking about china and continuing with some of the rhetoric we have heard, saying until chinal act discontinues the behavior it is engaged in in the south seas, saying it will continue to restrict visas on those tied to the South China Sea issue. Interesting to see this at the same time we see china pledging to increase its soybean purchases and some sort of agreement on trade. A lot of cross winds leading to ongoing tensions. Tom i would agree. What has changed in the last half hours we have seen the 1. 02. Eld breakdown, not a big deal, but the trend this morning off durable goods and durable goods reversion better has been a steeper yield curve, and with the nominal yield where it is in Inflation Expectations of real yield. We will give you more on that as we can. This will be fun. Salesforce. Of out of a small apartment years ago. He is now a dow component. Lined up with emily at 5 00 tonight. Marc benioff on the Dow Jones Industrial average. This is bloomberg. Good morning. From new york city for our viewers worldwide, i am taylor riggs in for jonathan ferro. The countdown to the open starts right now and we are 30 minutes until the opening bell, trying to extend some of the record highs we got yesterday. Better than expected orders. That does not seem to be moving the market much. You are catching a selloff on the 10 year yield. 71 basis points catches my attention. That is near the high end of the trading range we have seen in the last few months. We begin with the big issue. Markets at a standstill ahead of the fed jackson hole summit. The risk rally at searching for a spark. It is a big week for central bankers to speak. Mr. Powells comments. A chair powell will have framework of Monetary Policy. The new Monetary Policy framework. There is no rush for forward guidance