The forecast was 50 4. 8. 67. 6,ders up strongly, point three. 63 the one disappointment, and this is been true throughout the crisis, employment does rise but it is still negative already 6. 4 46. 4. The numbers are better than expected for most of the pmi but in the case of the headline and the new orders numbers, they are up big. That should be good news for the overall economy it will probably lead into some strengthening about what is happening with employment. Alix if you look at eurodollar you are seeing it take a leg lower. Either way, the dollar is getting a slight bid there. What are we looking for over the next data points . Michael to see if they fall below one million if theres any progress of that front. This is not the week of the survey, so it will not have a bearing on friday but it is the latest point that tells us where we are. Mosts have slowed down and of the highfrequency indicators. The jobs report is what everybody wants to see because it was a feeling that the slowdown in july rightly to a contraction in jobs for august for the consensus as we will so get a significant job creation, nothing like what we need to do, but there is a possibility it could be disappointing. This leans against that, but we will see. Terms of how we would normally what normally happens at this time of the year in terms of the seasonality effect, how does this work in terms of the progression from august to september . September is a tricky month for equity markets, how bumpy will it be for the data . Two thingsve happening, people going back to school so teachers and school bus drivers, people like that, going back on the job. That figures into the seasonals, but many of those people were laid off or maybe will not be coming back. You do not need bus drivers for kids who are doing virtual school. And the leisure and Hospitality Industry starts to cut back. This year we will not see as much of that because amusement parks are not open to the extent they had been, and sporting tonts have not reopened spectators. It will be interesting to figure out the effect. Alix thank you very much. The ism is coming in really strong. Now we have art hogan, National Securities chief market strategist. First, we are at the end of august. Tech continues to outperform because those yields are continuing to backup. Art it feels as though this september might have more headwind than tailwind. Markets have been riding on the wave of easy Monetary Policy and policy. Or some fiscal while monte policy has been consistent for this market, getting the cares act out of gridlock seems to be a much heavier left. On top of that, this is the time or people start thinking about the election and what that means for markets. Dayend to focus after labor around the election and what that means. One of the things we think about september which is a tough month for stocks historically, what backtoschool looks like, the experiment that is playing out right now. Will institutions be able to keep the coronavirus under control on campuses or will they fail and have to send the kids back home . I guess is september will have more headwind than tailwind and will not reflect the kind of exuberance around the month of august. Guy do these markets make sense to you right now wish mark the equity market, does it make sense to you . Art it certainly would. In the short term we have gotten very overbought technically speaking. Clearly it is overbought anyway you slice it and if you look at the percentage that the nasdaq is above, that is a record, close to 20 8 . In the short run we have gotten to a place quickly where the market makes sense to me if it is factoring in Stronger Economic growth on the other cited a vaccine and therapeutics. I think the activity that will be released in 2021 will be phenomenal, and i think that market is looking forward to that. It can get ahead of itself and i think that is what weve got. Alix we have to get through the president ial election. The nothing because all the chatter was from j. P. Morgan, a lot can happen in the next 60 days, but currently they believe the momentum in favor of trump will continue while most investors are positioned for a could we see a lot of volatility being played in the options market, might not throughout the rest of the market. How are you factoring the potential . Art post both of the conventions the race has gotten tighter, and we are not good at sorting this out. If you look at the last couple of elections we were not even close, but where we are even worse as an industry is predicting what it means. There are too many variables in my mind to say if biden is in the white house the market has to go down. That has not been true of democratic administrations especially if the Senate Remains in republican hands. The one thing that wall street is looking at is saying that that is the best possible scenario would be a biden win and you do not have massive changes to corporate taxes, but i think it is too early to tell. I think we have a long history of making wrong guesses about elections and what they mean to the markets. Guy lets talk about the dollar. We have a two year low. How much of a tailwind does that give the s p . Is it good or bad for stocks . Good foras been very stocks, certainly for emerging markets with a lot of dollar denominated debt, certainly great for the commodity complex overall, whether the precious industrialthe materials, acrosstheboard the commodities have benefited from the weaker dollar. Probably hasmove been exacerbated, and i think part of it is focusing on the fact that we have the most aggressive Monetary Policy in the developed world. Part of it is driven by the fact that we have had an uneven reopening process and rick and recovery versus other developed countries. I think the move has been extended and i think the weaker getting to which is the Tipping Point where we could probably see it reverse but not until after we get the election. Alix the weaker dollar is not translating into a flow into european equities. It was not sustained. Why . Art those rotations are really quick. When you think about that National Trade to say we are getting a better bank for our buck so to speak, into european equities, much like the rotations that we have seen into value they last for a hot minute and then we get back to business as usual investing in technology and the things that have kept us moving and sort of forget that rotation. Weakness, ifollar it continues at the same pace that we have seen as of late, then that would make sense. I do not think that will happen. I think the second rotation that we just discussed certainly happens as the data starts to improve, and this report is another piece of that puzzle. Guy thank you for your time, art. Next, rollsroyce motors unveiling its most technologically advanced car to date, and that is also happening during a pandemic and what is it doing for the operations of this company, we will find out. The ceo of leap joining us next. Ceo is bloomberg po the will be joining us next. This is bloomberg. President is the off to wisconsin, because the city has been plagued by violence since the shooting of a black man by police last month. The democratic governor asked him not to come sing the visit might inflame tensions. J. P. Morgan chase says investor should prepare for the chance that the president gets reelected. It take a look at holes and estimates there could be a shift of up to 10 points from democrats to republicans if the perception of protests turns from peaceful to violence. The global Aviation Industry has lost jobs in the last six months in the Research Indicates the losses could approach one half million by the end of the year according to a research group, the overwhelming geordie of the cuts have come at the manufacturing. Manufacturing is followed by airline seven seeing and airline jobs. This Video Meeting Service reported the second largest sale search among nasdaq 100 companies. Quarter they said it was a sign that business ors and consumers keep using zoom in larger numbers. 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. This is bloomberg. Talk to the cfo of zoom later, but this lecture he carmaker rollsroyce has unveiled its newest addition of the ghost, the most technologically advanced car that has ever hit the market. The company must now navigate supply chains in a world of coronavirus and how potentially that will impact demand. Ceo, and joinshe us now in front of the new car. How are you . Talk to me about the car and what kind of demand are you expecting . Torsten great to be with you. Moment. A seminal we are launching a new car and that does not happen too often with rollsroyce as you might now and particular the ghost plays an important role. It used to be the most successful car in the entire history of the brand, and it has been our bestseller worldwide. I must say we are prepared with this launch, thinking carefully about the date here of september and the reason why we are launching today is because i see quite encouraging signals from all over the world in terms of order intake for us. You might know the majority of our clients are Business People running their own businesses, men and women, and they are apparently more confident. We have seen quite an impact from covid, but we are now back on track. Alix does that mean if you like it was demand that was pulled forward, or pent up demand meaning it does not last . Say it was ofld course when covid happened in the beginning we saw quite some sharp drops in many markets worldwide, but they are all recovering. I would say that the order intake is not only for the ghost good but also for the rest of our portfolio. Confident,ason i am cautiously optimistic about the next year. Guy what is the relationship between financial markets, stock markets have roared back, and demand for your cars . Say that we could are a certain indicator for an economy, if i may say so. When our demand picks up, the economy particular stock markets are flying higher and that is the time now again, so there is a certain relation and it is all back to the fact that our clients are Business People, running their own entities and for that reason there is a connection. I would say that that is true for high end luxury goods. Distinction,e a depending on where you are, one area where it is stronger . Saw first pick up in the asian markets. They came back strong for our business after the sharp drop of the covid and probably because of the fact they are they are more used to covid and how to deal with it. Other markets are still on the upward trend and will still take to stash take some time to come back to old levels. When the levels will be reached, hard to predict, but in general trend can be seen worldwide. Guy what has been like managing a car company during this time . Operationally, your base down on the south coast here in the u. K. , what has been going on within the factory, happening within the supply chain . Have you had to lay people off . Do think the company will be smaller or bigger . I can tell you positive news. We shut the company for a couple of weeks after covid at us, but we reopened first in the u. K. With production on the fourth of may. We are also bringing our second shift in next week. We have not laid off a single person, which is unique. We were in the lucky position not to lay anybody off and the reason is order intake looks good, and also i do not want to lose anyone here of course. Alix in terms of the supply chain, the story is different, specifically on continental pit they have announce job cuts this morning. Are you noticing anything on that line where you will see some disruptions in your material available . Torsten not at all. So far it is very stable. We have not seen any disruptions here. We are preparing ourselves of course and have prepared rstar ourselves for potential disruptions. We have stocked up a little bit on parts so we are flexible and weve not seen any distractions here coming from covid regarding the parts. We have managed it well, spoke to suppliers direct. Particularly in the beginning Many Companies shut over some weeks, but we also shut our company here, so that went parallel to each other. After reopening we have handled it in a very proper way. Ay just behind you there is very large Combustion Engine. When will it be electric . What is the current timeline . Are you on track for what you have discussed before . Torsten i think we are well on track. Wei said a couple of times, will bring a fully electrified rollsroyce into the market, and then after that we will elect her alive electrify the full range. Time, and you will see a transition time from Combustion Engine into full electric, but i think we are well placed and prepared because i also want to get it right. We need to get our products right. Our clients have expectations ray regarding what an electrified rollsroyce should be and how it should work. Talk a lot about shortterm disruptions and one is brexit. What contingency plans do you have in place for that . Torsten we have planned and are planning and preparing ourselves. I think weve done that exercise for quite some time, and we are well educated on it. We have talked to all of our suppliers worldwide pit that is my biggest concern, disruption of supplier chains. That is well in hand. I think we also contained it in a way that we have stocked parts. It cannot go on for weeks of course if we would see a dramatic cut in the supply line after that, but i think we are prepared as you can get. There is no decision yet on that. It might even be that we see a , andon very short notice that is something i would love to see of course. Thank you very much. With the cart sector, tune in tomorrow with the ceo of daimler, coming up tomorrow at 8 30 a. M. Eastern time. This is bloomberg. Alix one stock we are watching is tesla. They have a fiveone stock split on monday and then the issue 5 billion to raise cash. Guy basically they are , and this is phenomenal. Why wouldnt you go out and take advantage of this . I have raised cash in the past, but when you have a stock that oing powerball like hyperbolic, tesla might have some bumps down the road. If its going to take the bumps down the road, it is going to need cash. Analystere was one seemingly insatiable and best of demand for clean bagels but it did not sound like a huge endorsement. Guy it does seem as if we are getting issues with that today which is worth bearing in may and bearing in mind. What are we going to talk about next . We will speak to the imax ceo about markets deskthe product you buy td ameritrade. Alix some news on schools here in new york, the mayor says he has come to an agreement with the teachers union. They are pushing reopening until about september 21. It is messy here in the Public School system. There is not enough teachers and there are budget cuts. Now it looks like they will not be starting school until september 20 first. Guy this is a critical moment for governments around the world certainly in north america and here. Schools are starting to go back here, but the government is imploring people to send their kids back to schools because they need to have people back on the work schedule. You wonder whether or not they are pushing against the grain. Alix unions are totally different beast here, but to barclays hadse a great report out that set the childcare requirement plans will reduce gdp growth in the quarter , so there is a massive link between growth and whether not you can go to work because of your kids. Guy absolutely. It is interesting to see how companies are managing this. An upk jp morgan was there childcare programs try to make sure it is easy to find a way around this because corporations understand implications. It is probably almost easier for companies to take action then governments. Alix that is a great point. Thats talk about reopening other sectors and when his movie leaders. Tenant is the first major movie to be really string the pandemic, and it has grossed over 53 million worldwide. Joining us now is rich gelfond. Good to talk to you give us a perspective of how youre doing . Rich imax is a technology provider, in 80 one countries around the world. We provide technologies to exhibitors on a worldwide basis, so there has been kind of a rolling reopening. China reopened a couple of weeks ago with its first what buster and it did over 100 may dollars, netthen last weekend te reopened around the world. As you say it did 53man dollars. Imax is a healthy portion of the box office, so the takeaway where it is safe to open people want to go to the theater. They seem to be coming not just one time but they seem to be changing their behavior and not all coming on saturday night and friday night, spreading it out a little bit. Guy what is the biggest drag right now in your mind as to what is delaying the Movie Theater story . Is it lack of customers or the lack of movies to go see . Rich i will get back to specifically what youre saying but i think it has more to do with people adjusting. There have been other kind of epidemics not on the scale before and the pattern is usually they come back to some extent but it takes a little while until it comes back fully. When you said impediment, i think people are really coming now but it will take a little time to come back at full capacity. Almost a it is question of who will go first, for the theaters open first, or will the films open first, and there was kind of a place where both were afraid to make the first move. One thing that warner bros. Did that was intelligent, instead of the traditional pattern where you wait for the whole world to be safe and then you open the world, they said there may never be a time that it all works perfectly, so lets do a rolling global opening. It is safe and continue to roll through the world, and right now that seems to be working. The hope is that gives comfort to some of the other studios and other films, and they open in a similar manner. Expect onedo you hundred percent capacity to return . Rich right now capacity is around 50 in most markets. Canada it was only 50 people a theater which is one reason the imax numbers are so amazing. We did almost 10 of the global ox office in this highly capacity constrained way. I think people will put their toe in the water and see how it goes. There have been no cases in the world, even though a lot of theaters have been open for months, where with Contact Tracing it has been traced back to a theater. I think the government want to be certain that there are a lot of safety protocols in place about masks and special cleaning , capacity limitations. You will see those open up, so if not this weekend this enet opens in china, and i think they will be a very strong market. As i said, they are starting to think about more capacity opening, so i do not think it will be a formula, but a casebycase basis as the regulators feel comfortable. Guy what is the shelf life of a movie . Movie,ake the new bond how long can you leave it on the shelf and expect it to deliver decent returns further down the road . That is a great question in terms of the pandemic. Typically the shelf life for imax is twothree weeks and then you move on. In regular theaters it is actually a shorter play but a longer tail up to a couple months. During the pandemic because of the capacity restrictions, what we are starting to see the beginning of is not everybody has to go the first saturday night or the first friday night. Millennials make the cover going to the theaters with more of their friends and more people there on saturday night, but others might say i would rather go wednesday morning. We think the lives will be longer. Chris nolan movies always have long lives historically. But for all movies we think because haver will be different, people will not be back at work, some will not be back in school so you dont have to wait until friday or saturday night. I think you will see a longer life, but when it gets back to normal, i think it will probably go back to the historic norm. On will stream on disney plus. Do you see more of that . Rich on blockbusters, no. I think disney was clear say that this was a oneoff. I think they spent marketing money and had a premier months ago, and i think they could not afford another false start in terms of the money in the audiences. So they did a logical thing for them and they moved it to streaming. They have clearly said this is a oneoff pit we have a lot of movies, traffic movies, marvel movies including black widow and a lot of other things, so i do not think you with the see this again. Guy thank you for your time today. We really appreciate it. President heads to kenosha today and his trip takes place a day after he suggested a man arrested for killing two protesters may have acted in selfdefense. He criticized the killing of one of his own supporters in portland over the weekend. Meanwhile joe biden accused the president of fomenting violence said he was soft on crime. Mark zuckerberg investigating investing three hundred may dollars in election for structure. The money is going to two centers promoting safe and reliable voting. He told the company it is important to have the resources to handle these unprecedented conditions. Russia has become the fourth onetry to confirm more than may in cases of covid19, and a strict locked in the spring help tame the initial surge, but new cases have remained high. Russia averaged more than 5000 new cases a day in august. The United States, india and brazil are the only other nations to top one may in cases. With the First Time Since 2016 Consumer Prices fell, the inflation rate in august came in at minus 2 10 of 1 . A recent rebound in Economic Activity has not managed to onset the epidemic impact the economy. 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. Im ritika gupta. We will break down the story with Kelly Steckelberg next. This is bloomberg. Alix coming up live coverage of Steven Mnuchins testimony before the house. Guy live from london, this is bloomberg markets. Soaring, and now that is our stock of the hour. Whether or not people are actually using this service, as it turns out plenty of people were using this platform last quarter. It has been hyper growth, the revenue surging in the three months ending in july, the thirdlargest increase among russell 1000 companies trailing only a pair of biotech firms. Omberg bio and my dharna moderna working out a vaccine. Looking ahead for this quarter and next, zoom sees revenue multiplying and its forecast has the top line almost quadrupling. All of this translates to a fat bottom line a bit with increased hiring, it is becoming more profitable looking at operating arjuns that expanded to just under 42 the second quarter. This higher profile means more security lapses and it makes it a easy target for hackers. The company has been addressing that. Ducking at the share price, i have run out of superlatives. It has been zooming higher, arc it cap now one hundred 34 billion, so if it were in the s p 500, it would be larger than ibm or citigroup or boeing. Of course it is not a member of that group, but its latest quarterly profit would put it in good position for inclusion. For more on zoom earnings his Kelly Steckelberg, and she joins us through zoom. It is good to talk to you read the question everyone is talking about is how much more growth is there . Can you sustain the momentum . I think what we see during this time is that communicating through video is not that bad, for work, for learning or communicating or staying in touch. Can see is that enterprises now realizes this is a way to keep employees safe and productive. Employees want that flexibility, they want to be able to work from anywhere. We have seen this is a great combination, and even if some day when we are able to go back to a more normal environment, there will be a hybrid approach that we have seen how efficient Virtual Events can be, investors conferences, Companies Leveraging our products at those events. I do not think we will ever go back to a world like it was before at the same level of travel. And we it is sustainable will see this be part of our life forever. Guy are you able to keep up the demand . I do not need to tell you about the operational issues that you might be facing in terms of the challenge. Are amazing employees have really stretched to continue to meet our needs of our customers. We have been hiring as quickly as we can. A Record Number of hires in our quarter, and we have amazing partners in terms of meeting the capacity that we needed to support this increased demand. We have been leveraging the public cloud, which has been grout great. I think it just speaks to the reliability of our platform itself, that it has been able to stretch to the demands. You how much more can bring to the conference space . Who do you think are your main competitors . Kelly the great thing about is that it is a consolidated platform of products spirit we have a Court Meeting platform which is the way most people get introduced to us but we also have a webinar product which is seen growth and we have zoom phone which we launched last year, and we also have a Conference Room solution. We have this great opportunity for customers to come to us and get this suite of products. We are excited about the momentum we are seeing. Zoom phone is now available in 40 countries around the globe could we had our largest deal to , and our two q2 largest deals were outside the u. S. , so tremendous traction internationally. On the meeting side we had an amazing deal with exxon mobil which was our largest initial deal to date as well. Really excited about the traction we are seeing. The big picture, we are rebalancing your Engineering Team away from china. To what extent did what is happening with tiktok influence you . Highlight thato zoom and take not tiktok are not similarly situated in that we are American Companies founded and based in the u. S. That i would say what we are doing is looking for opportunities to augment our Engineering Team in china. And weleadership team are looking to diversify the talent of that team by adding resources not only in the u. S. But also in india. That will help us ensure that we support for our customers around the globe. Alix is that a fancy way of saying that we are going to reduce employees in china because of this . Kelly we have no plans to reduce our engineering talent in chana. We really are adding to it. If you look at q2, you will see the r d as a percentage of revenue was 4 . We really want to be higher than that, continue to invest in resources around the globe to ensure we are able to drive innovation needed for the platform. We went that never to be higher than 4 . The steep, because of increase in the revenue, and as we saw all of the functional areas declined as a function of revenue so we want to add more engineers to continue investing in our platform. Guy why cant you add them in the United States . We are likely to see anything associated with china becoming politicized. Shareholders are having a pretty good ride at the moment. Kelly we are in the process of adding more engineers in the u. S. We announced that we are investing in Technology Centers in both arizona and pennsylvania , so excited about the opportunity to partner with the universities there. We see diversity of talent that we really want to ensure that we have the best minds working on our products. We will absolutely add engineering and resources in other areas of the u. S. Alix are you experiencing any issues in finding applicants here . No. Y i think with the increased awareness of zoom as well as the flexibility that workers have working from home, it seems like it is easy on them to hop on eight zoom interview rather than taking the day off to come in. We have been really pleased with the amazing level of talent that we been able to add to the team. About theceo talked conferences businesses last night and talked about aspirations. What is the aspiration for zoom . What do you talk about when you think about where the company is going, which kind of spaces are you thinking about, conferences look straightforward. I have been on plenty of those. You looking to become kind of the fullservice communication company, and how do you get there . Video is believe that the future of communication across all aspects of our lives, so the way we work from daytoday meetings to Virtual Events. Up ine zoomtopia coming october. Our Marketing Team has been working with the Products Team to ensure that we have the best experiences for all of those attending. And the product for learning, all we have had is very strong foothold in universities but now we are seeing it in k12 as well. We are thrilled that we have the top educational systems in the u. S. As our customers as they are all keeping their students safe by teaching remotely. Other aspects, in terms of health care, nonprofits, all tuning to Video Communications to engage their patients, etc. I am going to a fundraising tomorrow evening and people are getting early creative thinking about how to bring virtual experiences together with in person. Throw night they are sending dinners to the attendees but having us join together through zoom. I think we will continue to see people evolve and leveraging the power of video and combining it with other experiences. Alix how much of that will have to be through a joint venture or acquiring Something Else . Kelly we are always looking for opportunities to augment our amazing team and our product. We keep looking. We did our first acquisition recently and we will continue to look for more opportunities. Very much, thank you indeed for sharing your time. Zoom steckelberg, communications cfo. Alix it is time for futures and oak us. Joining us is abigail delillo doolittle. Abigail all of the commodities out of that march low are sharply higher, so can this risk rally continue higher question mark relative to coppola copper, another driver, if we going to the bloomberg terminal, the bigger driver could be the dollar. This is the one year chart and orange, and in white we have the bloomberg dollar index. Going into the march low for copper and stocks, we see the dollar was at an alltime high right before the full impact of the beds liquidity activity. When the fed was all in, you see the index coming in down 11 from that march hi to today. That has really spurred this risk rally because the commodities denominated in dollar, so up more than 50 percent over that time. Perhaps less of a tell in terms of the economy, and pointing to the idea of the weakness ahead, another chart, this is cftc positioning. Right now a lot of the copper bulls went in on this. , and back in when he 19, net short at the beginning of this year very briefly net long and then down on the bear market. Now close to the record high long position for copper. The copper rally may not continue for so much longer. Very much indeed. Next. Ccormick joins us a bit of a turnaround on the ism number. This is bloomberg. Guy live from london i am guy johnson with alix steel. We are counting you down to the european close. This is what you need to know about europe. The euro hits a twoyear high, inflation in the region turns negative for the first time in four years and pmi data Shows Companies lowering prices. Discussing brexit today and british Officials Say deal as possible. Wellound is trading against the dollar. Inquiry inscale berlin why regulators failed to act. This is what the price story looks like right now. We are seeing quite a difference across the atlantic in terms of equity market performance, particularly ftse 100. They are playing a little catchup. It is down by 4 10 of 1