Weaker byh pound is 9 10 of 1 . Picture withig tina fordham, avonhurst partner and head of Global Political strategies. She joins us from london. States we are 57 days away from the election and still no stimulus insight, even though the senate is back. It does not look like the president and democrats are ao any page that would be considered similao similar. Where do we go from here . Tina i think another round of stimulus should be a foregone conclusion. This haggling we are seeing, Congress Just back from recess, is what you would expect to see. Each side wants to see they are driving a hard bargain. Look at the language used by the two different sides. Republicans say the president wants nothing more then to write checks for american families. Democrats say the stimulus is not just skinny, it is emaciated. But we are going to get there because we have to. Ands a political imperative not just an election year, but with an election coming days nobody wants to pull the plug. Vonnie it is pretty imperative preelection, but also those who are running out of savings and beginning to really feel the pain. At what point will either side cave . Set and has been saidlicans it has been republicans do not like to give money to poor people and democrats do not like to give money to rich people. Era this is going to everyone. I think the democrats have more leverage when it comes to getting a deal and republicans will push a bit longer. But this has to come in days and not weeks. Nobody wants to be forcing a shutdown in this already extremely difficult environment for u. S. Companies and households. Vonnie that is for sure. In the middle of this is an effort campaigning, in some manner, going on. We are less than eight weeks to the election. Where do things stand from your side of the pond . Typesus political analyst tried to caution people that until after u. S. Labor day, which was yesterday, the polls do not have much predictive value. Every pollster will tell you a poll is a snapshot another prediction. From now on it really starts to count. What we also expect to see is whether or not there has been anything in terms of a postconvention bounce. I think the answer is now. We will see if anything comes from the debates, which are an opportunity to watch political theater rather than change peoples minds. Now is when the u. S. Public, those who are not politically engaged, will start to really focus on the election as opposed to the rest of us for whom sifting political news is a sport. Vonnie exactly and it seems like a lot of what has played out is for the connoisseur or person who follows more closely than the average voter. Change not seem to their mind based on any particular story. Do you imagine an individual story will change even a single voters vote . Tina the atlantic story about the president s reported remarks about u. S. Troops during a trip to france during the dday commemorations was a very interesting one and i think it suggests something that is an important change in this election compared to previous ones. That is the democrats are willing to pull the stoxx out stops out and play dirty and away we have not seen in the past. Somebody i no used the expression that the atlantic article twist devoted president trump. Tanked the ads that john kerrys bid. When i said things start to count the idea of an october surprise, what is that going to look like given how tough that the article was . Read byantic is not the person on the street, but people will Pay Attention to the president s attitude on that. Vonnie tina, curious as to your thoughts on what joe bidens strategy should be between now and the debate and at the debate itself. Tina the last time we were together i talked about how biden achieved the best outcome for himself and his president ial bid by not doing any harm during the Democratic National convention. Interpretation of the hippocratic both. Oath. It has been set unkindly that joe biden talks better for him. Well innk he will do debates when they come around, but given the extent of bidens supporters who say they are voting for him that are not president trump, the less specific he is the better. He does not want to alienate those people who are happy he is not trump. Vonnie can we change slightly and moved to brexit . Boris johnson is again in the driver seat and playing the whole thing a little tough. He is willing to break International Law according to the Northern Ireland minister. The ireland question is back on the table. What, apens between quarter left . Tina it has been little time before this one year transition period expires. You have seen the action and sterling this week. Surprising the Prime Minister suggest the u. K. Would negate aspects of the Withdrawal Agreement agreed by theresa mays government, senior legal Government Advisors protest over this. Concerned, the European Union is concerned, in the United States does not like this either given its historic support for ireland. The Prime Minister has set october 15th, which is the date of the brussels summit, as an artificial deadline. There is more time than that, but i think markets are starting to worry that the Prime Minister is willing to do what he suggests and leave without a deal. Vonnie on real. The sterling drop, is it enough to reflect the idea this might happen or is it ignoring Boris Johnson . Tina i think it is pretty modest considering the risk. Vonnie exactly. Tina in percentage terms, it makes headlines, but in terms of the scale of the risk and not just brexit risk that markets are starting to look at. A very real possibility in my view of u. K. Breakup, Scottish Independence referendum looking more and more likely, and there are other u. K. Domestic political risks like tax rises coming from the chancellor which really has not covered itself in glory and terms of the pandemic response. I think all of this will start to figure more prominently in sterling action in the coming weeks. Vonnie we are still trading above 130. Thank you. We will talk to you soon. Tina fordham, avonhurst partner and head of Global Political strategy. Let us get first word news with karina mitchell. Karina Mitch Mcconnell says the senate will vote on a relief bill this week it is expected to feature aspects of a 1 trillion proposal put forward by republicans. 500ll cost between billion and 700 billion. Democrats are expected to block the bill. Has democrats say they will investigate why the postmaster general violated Campaign Finance laws. The Washington Post reports five people who work for him said they were pressured to contribute to republican candidates and reimbursed with bonuses. President trump says dejoy should lose his job. Administration wants to crackdown on china for its alleged repression of the muslim community. It is banning imports from three companies of the chinese region where many live in more sanctions may be added. There is concern some Chinese Companies rely on forced labor. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more then 2700 journalists and analysts in over 120 countries. I am karina mitchell. This is bloomberg. Vonnie this is bloomberg markets. I am vonnie quinn. Crude tumbles in the wake of faltering demand. We go to jessica summers who covers the markets. Any danger that we are going into negative territory like we did on one of those contacts in the summer . Jessica thank you, vonnie. It is great to be with you on a day like this and it doesnt seem we are making moves downward does seem we are making moves downward. We have seen this powerful force of weaker demand from the u. S. To asia, more supplies from opec, and weakness throughout Broader Markets come together and push breath below these key psychological levels. With coronavirus a problem around the World Oil Demand will remain weak through the fall. Will be able to get down to that negative territory. It will be very difficult to be sustained rallies from here. Vonnie technical indicators, what are they showing . Dropping closer to the 100 Day Moving Average and threatening to settle below for the First Time Since june. If we get below, we may see additional selling pressure. Oil investors should watch out for that. I do want to point out brent is quite a ways below the band may be due fort i a bounce back. We will have to look back at the fundamentals and see if demand improves as we move into this fall quarter. Vonnie the weaker demand, what will change that . Will it take for covid to be under control, for a vaccine to appear . Jessica interesting question, vonnie. What really strikes me is Merrill Lynch saying this week it will likely take three years for Global Oil Demand to recover from covid, assuming there is a vaccine or cure. That shows there is a bleak longterm outlook as long as the coronavirus does persist. In general, we are seeing demand weakacross the board across the board. Less demand for crude, and asia demand recovery also stalled, bloomberg did a survey in fact and only four out of 10 asian refiners said they would even be trying to buy more Saudi Arabian crude even after saudi cut pricing. That shows you how weak demand truly is. Vonnie thank you for that. That is bloombergs jessica summers. Time for our stock of the hour. Tesla heading for its worst day in smart, sinking more than 16 . Lets get details from kailey leinz. Lost one third of market value in the past five sessions. Even with the losses we have seen over the past week teslas market valuation is still 343 above where it was at the start of 2020. There is multiple factors involved in this. One is what we are seeing in the Broader Market a selloff out of these higher fly names. Tesla is the poster child for that given it has been the secondbest performer in the nasdaq 100 and posed a market value worth more than toyota, gm, and Fiat Chrysler combined. Some factors include a lot of the rally we have seen was based on investors betting tesla was going to be included in the s p 500 given that it had turned for consecutive quarters of gap profit, which is considered accounting practices. That was not enough. Other stocks were added and it calls into question teslas profitability equation that it is only able to turn a profit because it sells credits to rivals. Speaking of rivalry, another factor today is potentially more competition. Gm taking a 2 billiondollar equity stake in an electric truck maker. That lends credibility for a foothold into the ev market. Today and nikol a up as well. Vonnie thank you for that. That is kailey leinz. Toe Market Analysis speaking global advisors. This is bloomberg. This is bloomberg markets. I am vonnie quinn. Let us get to the volatility we vixseeing above 33 for the and tech shares are down today. Joining us is ben emmons. To what do you attribute the continued selloff . Correcting,ficially maybe smoothing things out valuation wise . I think there is froth in the nasdaq index. A small percentage in april and almost 20 in august. A large part of the index is up in value that you are getting this correction, but you also have to look at it from an economic perspective. We are spending and the economy. Points to a strengthening [indiscernible] markets are signal looking for a pivot towards the end of this crisis. How much is this playing into market moves . I think what played into the markets was people started and started to see a signal from it. Everybody was so involved because of this extraordinary environment. That exaggerates the drawdown of gold. Buying gold is a major selloff. [indiscernible] vonnie decoupling the u. S. And china, that is the latest from the president. It is unclear how serious he is or how quickly this will happen, but we are seeing repercussions for cotton, garments, Hair Industries and so on. What does the decoupling mean to you . Mean we would be economically decoupled. Capital flow from the United States to china and back would really reverse. I think that is highly unlikely not only because it is a structural trade balance we have with china. [indiscernible] the fact is becoming part of the campaign, this will play a big role after the election. Decoupling is a negative development. Vonnie what chances would you put on full export controls ever . Ben i do not give it a major chance. Is not an example politically driven and a sense going through legislation and different types of security and get implemented. Implement anynd mean time. It becomes a political environment around it. How are you trading or advising trading in todays environment . We are seeing big moves in yields in europe although that is to be taken a little bit with a grain of salt. We are also seeing moves in equities, not so much in aboutries, but the vix is 33. There must be great opportunities out there. What are they . Ben reopening stocks. The economy was severely hit by covid on the traditional business side. It has seen effort to try and taken revise it. The residence business business, hotel business. There is a lot of opportunity whether you are looking at equity or credit. They are attractive relative to their own values. The Technology Sector will see a demand. The reopening is a very attractive part of investing. Vonnie you are on the west coast. Very briefly, how is it over there with the wildfires, covid, and so many difficulties right now . Ben definitely challenging. The air quality at the moment given the fires, the rolling blackouts, and we still deal with covid. It is not great, but in the case of the environment in los angeles it is one of the situations that is part of our environment. Been, thank you. Ben emmons global macro strategy md. Shares of nicola jump as much as 41 after a deal with General Motors. We discussed the details next. This is bloomberg. I am karina mitchell. Drugmakers racing to make vaccines have come out with a public letter promising to avoid shortcuts on science. The ceo of nine drugmakers signed the letter. President trump is hinting the u. S. Could approve a vaccine in october before the election. South africas economy has sunk deeper into recession with its 51 . Lummeting by largely a result of covid19, one of the strictest lockdowns in the world in response to the outbreak. The Unemployment Rate is at a record high of 30 point 1 . The u. K. And European Union are pointing the fingers at each other for fragile postbrexit trade talks. They are urging the eu to show realism in the discussion. The latest round of discussions london today. London is in a transition period until the end of the year. Is calling onions russia to investigate the reported poisoning of an opposition leader. A fierce critic of Vladimir Putin was wounded flowing to germany after falling ill on a flight to russia. Experts say he was poisoned with a nerve agent. He emerged from a coma over the weekend. 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 karina mitchell. This is bloomberg. Amanda welcome to bloomberg markets. Vonnie i am vonnie quinn. Here are the top stories from around the world. Start your engines. Stake nikola,uity in sending shares higher. The push into canada. We will speak with the impossible food ceo about the expansion. And we will hear from Reed Hastings about subscribers as the streaming wars heat up. And how the company is handling the pandemic. We continue to see equities selling off, perhaps off the lowest mark of the session. The s p 500 showing every group lower today. As you might expect, tech shares are leading the way in declines. Energy is along with it. Negativity out there. Among the big names, only disney is standing to the upside. Just a broadbased of negativity across those moves higher. Financials are weak. The bestperforming group is utilities and it is still negative today. That kind of a day. There is the 10 year. 67. We have seen that yield responding to a flight to quality as we have seen a rotation the last couple of sessions out of that yield. An interesting move. We are watching the price of oil as well. It continues to soften in a way we have not seen in recent weeks. Looking back at when it went negative in april. It does not feel that long ago. The pandemic is changing everything when it comes to time. I am looking at tesla. We saw a divergence today. It was stunning. Tesla was down 18 . Cap of that was the market and so on. Disappointment given that more mandates wont be getting into to buy s p 500 companies. Other things going on as well. At the same time, we have nikola , which has not delivered a truck yet. They saw shares soaring. See. A interesting to investors trying to place their bets on the electric space. All uberng by 2030 vehicles will be electrified. Fleetectrification of the is a question. Are investors to woerle . Vonnie yes. There is a race. I want to bring in david welsh. , needed thenikola partner. I want to do start from the point of view of General Motors. Is this a smart move for gm to hedge its bets . David it is because it does not cost them any money. They give their fuel cell and Battery Technology to nikola. This is really a giant signal for the stock market that has bought into nikola shares and given it a valuation of more than 18 billion. We are gm and our technology is better than nikolas. They are using gms battery pack, which is for their future electric view vehicles. Investors bought into nikola thinking they had great technology. Instead they are using gms. Gm is up today. Not getting quite the bump nikola is, but investors are taking a look at this. When these companies, a hot startup and an old company, they end up using gms technology. Classf these fuelcell seven trucks cell, gm gets into a market where they are not currently. And if the pickup truck sales, they just get more volume for the plants they will use to make their own vehicles and they get some royalties from that. A lot of possible upside from gm. And they are not spending money to do it. Vonnie can investors say gm did a huge amount of Due Diligence and all of the signs that might be alarm bells such as the founder and so on, the tesla that is all fine because gm is investing and it is the real deal . David that is a big question. When we spoke to be ceo this morning, people were asking what technology they bring to the table. , theyve got an actual truck they are working on. That is the nuts and bolts of auto making. This does keep gm from having to , and a plann truck to do it. Real truck side of it. Gm could help Companies Get to market faster. In terms of technology, it is all gms. Maybe it validates a have tapped into a market and have customers waiting. That is about the extent of it. Where does that leave the other big players . Particularly forward. If gm has partnered with a player, is there room in this race for the other big three to come out with alternative products . Avid right now you have such wide open market. Everybodys trying to find they place other than tesla. One is amazon backed. That is their play. They will develop a truck with them. Chrysler is going to have to find something. Then honda is, General Motors as well. Profits have been hard to come by tesla. Everybody else loses money. You will see partnerships and alliances like this while everybody looks to see how they are going to make money. They will have to form up to get scale and drive costs down. This kind of deal you will see lots more going forward. Vonnie we have to leave it there. David welch. We will be talking to nikolas founder in the next hour. Stay tuned for that. Like it isselling 1999. A look at the tech sector next and whether it is going to be a bubble 2. 0. This is bloomberg. Laying. I am amanda this is bloomberg markets. 100 90 million subscribers, benefiting from the stayathome nature of this pandemic. The question around where goes from here, its cofounder and coceo spoke with emily chang about that and also about the coceo arrangement. The it is dependent on people. It is unusual. If you think of every family, there are generally two ceos running the family. You have to be close. We have been together for more than 20 years. I am confident it will work. Emily the pandemic has played into netflixs hands. You are in a perfect position for this moment. Production has come to a halt. Projects are backing up. It is getting harder to find something new to watch. How do you think the Entertainment Industry looks different when it emerges from this . Reed it is definitely a challenge from the lack of production. In europe we are able to go back to production and in much of asia. In the u. S. It is quite slow and challenging. That is going to have an effect more next year than this year. Not only for us, but for our competitors also. Everyone is figuring out how to their isork, just like a writer strike or other things have happened the last 50 years. In the long term covid is just a blip and historical footnote. Kind of like the 1918 pandemic we read about today. Emily youve said there is space for many streaming services. Youve been impressed by disney, hbo max launched. How many of these services have the potential to reach 100 Million People . Will there be consolidation and who is left standing . Reed there is a difference between disney plus, over 60 million subscribers the first year, and hbo max, which is 3 million or 4 million. One of those is really incredible. I would not have guessed you can get to 60 million in the first year. Theill see, depending on quality of the services. Over time there will be additional consolidation mike fox and disney, which has proven to be great for disney. There will be some more of that. ,onsumers want fewer brands giving a wide range of entertainment. Emily how many years before netflix has to think about something new . At what would that be . Videogames . Social media . Keep an always try to open mind. My First Company we acquired a lot of companies. We have been through that. Mostly we want to make our Service Better. Theres at least 5, 1520 years ongrowth really focused making our Service Better and better. Weve always added new types of programming. Starting in series and expanding into film and nonfiction and now animation. We will continue to expand. Reed hastings speaking to emily chang. You will hear more from the man behind netflix wednesday at 9 00 p. M. New york time. He joins David Rubenstein in the latest episode. Now andstay with tech the potential bubble 2. 0. Hat is the wrong question instead it should be how much more growth . And how much will we have to pay for that growth . Consumer our electronic analyst. I love how youve posed the question. Where will it come from and technology . Thanks for having me on. That is the question that is more important at this point. Sectors, like commerce or cloud computing, has driven a change in valuation across the sector. Some of the names have outperformed the fundamentals. Not just 2020. Sort of the long term view. Thisied to look into, change is not going to be a step change every year thereafter. Growth look like in terms of internet and ecommerce . You look at that fundamental rate, it is still strong. It will not be as strong as 20 20. I dont think that will be repeated. It is still strong. How much are you paying for the growth is the question. That is where the stories are diverging. Some of the bigger names, you talk about amazon, apple, they seem to have borrowed from the future returns. Netflix. Ad microsoft, pinterest, facebook, reflecting valuations more inline than others. The story is company by Company Versus a broadbased call on the entire sector. That is the key point. The growth rate beyond 2020 would be strong. How much you paid today matters. That is where our study on what happened during 1999 and thereafter gives some light. Amazon is a great example of that. In january of 1999, that is when the evaluation peaked. Fast forward 10 years, amazons revenue grew 30 times. On stocks from that point yielded 25 negative. It is more about what growth youre going to get. Only about 30 seconds. Meantime, do you expect to see momentum because theres so much Retail Investment in this group . It is news in general. We see ecommerce has swung too far on the one side given the step change. It will work against it in the coming year. Expectations and valuations are high. Recovery could work in the favor of advertising. The pendulum will swing and the other direction before it normalizes. That is what will answer that question in terms of how much good news we will keep maintaining. To have you with us. Thank you for that. One company that is pushing into the Canadian Market amid challenging circumstances is impossible foods. We speak with the cfo. This is bloomberg. Amanda this is bloomberg markets. Coming to canada today is impossible foods, bringing its products after expanding into the u. S. And asia. David lee is with us now. Thank you for being with us. I wanted to start with the timing because we do now obviously the Restaurant Business and Food Services have been hit hard by the pandemic. Why now is the right time for you to push into this market . Been acanada has always great market for impossible foods in addition to the United States and asia. Canadians consume Something Like 25 kilograms of beef per person per year. Our mission is urgent. Our timing is urgent to create more opportunities to create new dishes out of the impossible burger, which we are excited to launch today. Vonnie it is a plantbased burger. We should mention that. Important in these times when we see difficulty for people buying food. On the one hand they are getting less healthy and all they can afford is fast food. It is difficult. How are you finding costs . David we are committed as we scale our business we will share our cost savings. You saw impossible foods reduce prices across markets by 15 . Because nine out of 10 of our wesumers are carnivores, have a lot of room to scale the supply for the demand we see. Im glad you mentioned the challenge on food security. Likelyeve health care impossible burger will be embraced by all and today we are committed to increasing that reach by launching in canada. There are sustainability wins when it comes to clientbased meet. That is a big impetus for many. There are concerns about the comparative health of high sodium. Some other questions about how healthy a plantbased product is relative to straight up beef. What is your answer to that . Facts. I go to the an impossible burger has no 75 milligram. Rsus we have less fat. 14 grams of total fat compared to 2x that amount. Less saturated fat and less calories. 10 15 less calories. We think if you make the tradeoff, and i am a meat eate r, we think it is a great choice for your health. The reality is it is better for the world by using the impossible burger. Fractionwater and a from the greenhouse gases. We try to make that choice easy. Vonnie you have factories near shanghai. Any concern this war between the u. S. And china might actually slow some of those plans . David asia is nearly 40 of consumption. Today in singapore and hong kong we have not announced any new plans for production in mainland china. It is an important market and one we will eventually serve. Vonnie david, thank you for joining us. Impossible foods cfo david lee munching in canada. Have you had much plantbased food . Amanda i have. I do like them. They are delicious. Vonnie excellent. York and toronto, this is bloomberg. Im karina mitchell. Government and private industry are taking steps to make sure the white house does not interfere with approving a safe and effective covid19 vaccine. The food and Drug Administration is making sure it staff knows politics should not influence the agencys decision. The commissioner tweeted there will be no cutting corners when it comes to approving a vaccine. President trump made the unsubstantiated claim the deep state was slowing approval of the vaccine. There are encouraging signs the coronavirus outbreak in florida may be slowing down. The state reported 1800 new cases, the lowest since june 15. The number of deaths was the lowest since july. Nearly 12,000 floridians have died since the pandemic began. Senate majority leader Mitch Mcconnell says the senate will vote on a trim down republican coronavirus leave package this week. The bill will feature some of the aspects of a 1 trillion proposal put forward a month ago and is expected to cost between 500 and 700 billion dollars. Democrats are expected to