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China is doing better than good. We get a nice lift. To your point, i cannot remember a fed meeting where i have been more distracted by other news. Jonathan because the other news matters more. At the moment, the Federal Reserve is basically done when it comes to the framework shift. We have seen that. When it comes to the Balance Sheet, we have seen a huge expansion. Butink there will be tweaks for many people, the most important catalyst is physical. Tom it is physical based on week demand. I can or where i saw this. I will give axios credit. It was a food bank in richmond, automobile, car, by and it looked like field of dreams the line of cars went off into the distance and it was shockingly sad how people were lined up to get food, having that much difficulty. Jonathan could not agree with you more. Were living in two worlds. The old world is struggling. Love the we see our place, particularly in the airline business. Airbus talking about the prospect of more than still to come. The new world, amazon out there kth 100 k buying 100 employees. Two different worlds, polar opposites. Lisa there is a question of how the Economic Data reflects this. Paul donovan said this morning a recent report there is an absurd level of trust that Economic Data data is accurate and there is a failure to challenge with the data is saying and that is a salient point at a time were getting Economic Data and markets dont know how to read it. That is a key concern. There is a question on how the fed will read it as well. Jonathan what is coming up . Lisa we will look at some of that data, u. S. August industrial and manufacturing production. Looking for it to confirm the popular perception that the easy gains have been gotten. 1 00 p. M. , i know tom loves bond options. Tom arsenal pregame. Lisa i know you watch this carefully. People are wondering how much people will be watching the fed pullback as a buyer. Also, the fomc gathering for a twoday policy meeting. Inflation. What, tom . Jonathan what are you complaining about . Ohe isn rumored to take on the mets and Lisa Abramowicz kobe the first base coach. Abramowicz will be the first base coach. What does he need to does he need to do to turn around the sorriest franchise in baseball . Lisa a means to lower pay and increase results. That is the bottom line. They are already losing. They are already at the bottom of the conference and it has been a short season. It is a very expensive team. Tom look at that passion. The show is the wrath. Look at the passion from abramowitz. Lisa no one needs to hear me talk about baseball. Jonathan you know what i love from lisa, she has this one line, she says let me tell you something. Says let me tell you something, it means you are all idiots. Lisa carry on, john. Jonathan you will hear it over the next couple of hours when she refers to tom and me. 07 on the s p. Weakest. I have to say, the range and treasuries has really helped, and not many people think it will break soon. Europedollar approaches 1. 19. Just aalreal this coming little bit. It is not a yield real yield is coming just a little bit. There it is, a lesser negative statistic. Now, janice right joining us right now, jpmorgan strut this is your most recent research about the bond market, where do you get that Downside Protection from . What is the answer . Is a difficult question. With all difficult questions, i think it depends. Say first the underlying trend is a positive one based on fundamental factors. You have surprising earlycycle dynamics. The fed is providing support. The balance of risk on the downside is pretty good. It is a portfolio construction headache in the sense your usual sources of protection are the longer active. The most impressive thing over the last month has been just the fact that bond yields do not move. You had a point where u. S. Equities were down 4 or 5 . 10year treasuries were down two basis points. The negative stockbond correlation is no longer a source of negative balancing portfolios. The question is how do you get that . The answer is you have to assemble a set of more constructive, favorable correlations in your portfolio. One is credit. If you are taking a pro risk view, positions in credit are not correlated and because of the fed put, the implicit and explicit guarantees them a credit have been has been much less expensive. That is one. The second is the dollar. Everyone is talking about how the dollar will appreciate in trend terms. What goes wrong. There is no strong to limit to how strong the dollar can get. Funds thatthe hedge on technologies slept. Slipped. How important is it to go with hedge funds in their belief, or is that contrary into them . Which way does that count . Ben well, average returns for hedge funds over the last 20 years have not spectacular. Maybe you will take that as a contrarian indicator. I think you have to focus on what those directional trends are, and were not looking at that as a singular indicator here. Tom what is your indicator on Technology Funds . Ray dalio coming up this afternoon. A blistering article on bridgewater is that the salvation for hedge funds, to go the other way and pile into tech . It raises an important question will Growth Stocks continue to lead. It feeds into the same concept of where his protection in your portfolio. Typically with it about the u. S. Equity market is a highquality return on your equity market. Whenolatility, especially leading, is very much centered around the u. S. Ast that is telling you is you diversify internationally, you are looking a little bit less in the u. S. , and a little more upside for that balance more outside for that balance. Lisa when you say outside, are you looking to china . En you have consumer demand out of the china data, but you see pretty much everywhere. We are not in the blistering fast growth we saw in may and june, but the consumer is in recovery mode. Ou see signs of the inventory cycle is amplifying that. The markets that are leveraged good will do well here. That includes emerging markets, to some extent europe. Think about u. S. Largecap and a combo with europe as your portfolio, that makes sense. Jonathan great to catch up. That final point, really important, manufacturing easy to turn back after the pandemic. The consumer much, much harder to do. What we see in china is important. The switch back on manufacturing and retail sales is where the outperformance was. Thats what we want to see not just across the United States, europe, too. Is difficult to transfer china to any other economic platform, including the net states. Jonathan couldnt agree more. Scotte just talked to stringer, comptroller, running for mayor and he went right to it the spread for jpmorgan and Small Businesses on third avenue has never been greater. Jonathan could not agree more. Let me tell you something here the u. K. Economic kingdom united kingdom, the funniest statistic, deanna plymouth rate will look radically different if they allow it to end in a months time. That is the story at the time struggling to get a read on this economy, not just in the u. K. , but worldwide. Absolutely. You wonder to that point, the fed meeting tomorrow, is this a fed meeting about the united fedes of america, or the banker to the rest of the world . Jonathan lisa might want to weigh in, but the fed is going forecast. Upgrade its the forecast on unemployment is too depressing compared to where we are. The Unemployment Rate is already low. Tom lets go to the depressing want to find out. Lisa . Lisa thanks a lot, tom. Let me tell you something, it is pretty depressing out there. [laughter] lisa the data has not been as surprising as people expected. It is continuing to surprise to the upside. All the pain we see with data is not been reflected to the degree expected. Jonathan you realize you are exposed. People will play a tricky game with this. Lisa if you give me a bottle of wine, i will play it. Jonathan i am happy to see you drunk on bloomberg surveillance in the morning. Then there are two of you. This is bloomberg. News, ritika word gupta, on capitol hill, a long shot attempt to break the deadlock over another Coronavirus Relief bill. A 15member crew will unveil a 1. 5 trillion stimulus package today. It also compromises on the two to state issues, aid and global government and supplemental Unemployment Insurance. Hurricane sally slowed slightly overnight in the gulf of mexico. It has been downgraded to a category one hurricane with winds of 85 miles an hour. Sally will make landfall tonight or early tomorrow. Exactly where is difficult to say. The hurricane warning will extend from new orleans to the florida panhandle. There are fears the hurricane will bring a deadly storm surge and flooding. Bill gates used to think of the fda as the premier authority. Not anymore. The banner discussed politicizing covid19 treatments and vaccines in an interview with erik schatzker. Bill any suggestion that a politician helped create the vaccine or it is faster because of a politician is a very dangerous thing. We saw with the completely bungled plasma statement, when you start pressuring people to say optimistic things, they go completely off the rails. The fda lost a lot of credibility there. Ritika we will have more of that interview with bill gates coming up on bloomberg tv. 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. I am ritika gupta. This is bloomberg. Bill any suggestion that a politician helped create a vaccine or it faster because of a politician is a very dangerous thing. We saw with the completely bungled plasma statement that when you start pressuring people to say optimistic things they go completely off the rails. So, the fda lost a lot of credibility there. Jonathan bill gates there, the microsoft cofounder, trying to separate the politics away from the vaccine effort. A big story over the last several months. For new york city and london, good morning here is your price action. Two hours and 12 minutes away from the opening bell, trying to get away from a twoweek loss from the essence on the s p 500. We bounced back yesterday we continue today. Were up. 07 . Approachingt, euro 1. 19. That is what we are right now. The bond market, i had of the fed position, 0. 678 . A snoozer in the equity market. How long will that be the case . Tom the vix has been a remarkable story of the last 10 days. It is the right angle of new jersey, the fifth congressional district, buttressed up in northwestern new jersey. It is a really, really twisted and trusting district that goes moderate, and this is about moderates, those close elections, 52 40 8 , etc. Kevin cirilli is expert at these kevin,ts nationwide, and the Fifth District in new jersey brings us to this erik wasson report today of a 1. 5 trillion moderate stimulus bill. Is it dead on arrival . Kevin this is the ace up the sleeve of treasury secretary Steven Mnuchin who had been referring to a third option related to the stimulus. They are known as a Problem Solver caucus, 15 members, moderates, republicans and democrats both. Erik wasson will be unveiling a 1. 5 trillion stimulus package. It splits the difference on a host of different issues, including the issue of Unemployment Insurance at about 450 million 450 per week, and it is something mcconnell and pelosi could not get their respective camps entrenched on both sides to agree to. We will see if there is a narrow path to agreement. Tom an important point, these moderates are people that really, really, really risk losing in this election. They usually when by close votes. Does mcconnell and policy care about them . Kevin this is an opportunity for congressman scott hammer and congressman reed, a republican from new york, to really throw should they clout be able to secure this monumental political capital. It is also an opportunity rather for the white house to back a moderate proposal that could sell well in the districts. I think from a broader standpoint, many of these democrats, and i am sure they do not want me to say which ones, in the private Problem Solver caucus, are having conversations with senior members of the administration on a host of issues pertaining to stimulus and they have for some time. On the issue of state and local tax reduction, there were key groups on the fun with the white house and meeting with the white house privately in order to alleviate some of their concerns. Tom what happens on the stimulus bill today this moderate hill. What are you looking for the next 24 hours kevin yesterday when i spoke to lawmakers they were skeptical anything could get done before the election, but ultimately the 1. 5 trying dollar price tag on the Problem Solver caucus proposal is something the markets had taken to expectations. So, it is a narrow path. We will see if it gets any pickup. What i will be listening for a Speaker Pelosi and meter mcconnell to see if they will be on board with this. Jonathan lets talk about substance. Unemployment benefits 600. That is what used to be. 450 is what it would be in this bill i am trying to figure angered,ould be more democrats because it is less than 600, or publicans because it is more than 300 . This both sides will say is as good as it gets. This is an opportunity for Speaker Pelosi to say this is not my idea, but the moderates idea and will be able to peel off to any of the progressives that they fought for something more progressive but it ended up at the negotiating table. Lisa kevin, is this the less chance for congress to pass another fiscal report support plan . Kevin this is the last chance before an election. Session, it gets more interesting. There are a handful of benefits that expire at the end of the year. The artificial cliff that exists at the end of the month in terms of keeping the government open, the next artificial cliff is december 31. Lisa politically, wouldnt the president want to pass an additional round of support . Wouldnt the president be trying to push this through or is he of the month the economy is recovering well enough on its own . Kevin i think politically speaking, based on my reporting, there is definitely incentive for President Trump to advance some type of fiscal stimulus. If you go global, if you look at what is happening in brazil with bolsonaro seeing the benefit of fiscal stimulus that has helped him in the polls, there is an example of how the economy has surpassed the issue of the pandemic in a country like brazil. If you go to israel where they reimposed lockdowns for three weeks, that, one can make the case would be politically advantageous to democrats. You have the ability to cover mice with moderates at a time where the president is struggling politically in suburbs that would be one can make the case that was the politically advantageous. Jonathan good to catch up with you. It might be politically advantageous to someone. This could be good news for the economy and people going through some pain. That has to be the big takeaway. 11 00 a. M. Eastern is when we need to look out for that news conference. Tom we will have to see. The desperation, like lisa mentioned, it is now or never people have been talking about this through all of august. It is the middle of september and now or never is here. Jonathan i think, tom, to be fair, and lisa might agree with us, since we passed the last bill, ever since, waiting to calibrate or recalibrate the next effort. It never came. Lisa it never came. Now the tone shifted and perhaps people are saying it is not as needed to that is what i am watching the data is better than expected, how much momentum is there, is there validity to this, or are people blind to what is coming if we do not get more support . Jonathan let me build on that. The tone is shifting. It is shifting in the sea suite. You have Michael Oleary of ryanair, same as get back to business. Citi resuming job cuts. There was a stigma attached to that language. See suites are feeling bolder. Lets get back to business and get things done. Tom i would say two things but withight, citigroup there are substantial cuts as they bring in risk managers, and the other is money is free. The last hour carnaval is going to try to raise 1 billion in equity, the beleaguered cruise line. Money cost nothing right now. Tom it might cost jonathan it might cost something for the likes of carnival. We will talk about that later. This is bloomberg. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Jonathan two hours away from the opening bell in new york city. Lets get you that price action. 7 . 00, a lift, up a lift yesterday, too. Eurodollar 1. 19. 0. 63 . Rket, in and around 11 . The effective yield now 6 . That gives you an idea how much that note has rallied and how much spreads have come in. And hasbb piece of debt really performed well over the last several months. Tom as my sainted grandfather said, he said you cannot make money in bonds. Think of the price appreciation, from 11 to 6 . Be aifts today, got to good feeling about china and maybe economic growth. Nowave a guest joining us with steve bullock, their chief economist. People stiefel, their chief economist. What is the allin Unemployment Rate . Is a double digit . It could be. The civilian rate has come down to 8. 4 . There has been vast improvement from early all in the pandemic, but we do not know if it is fully capturing what has been happening in the labor market. The true Unemployment Rate is much likely to be closer to the doubledigit range. But as we wait for the fed decision later this week, tomorrow exactly, we think the fed will emphasize that improvement we have seen in the labor market. The further growth we have seen in terms of hiring, declines in the Unemployment Rate, jobless claims, so the federal focus on improvement we have seen with more of the more secondary numbers that suggest a higher level of joblessness in the u. S. Labor market. Tom and we will get to the november 5 fed meeting, which i assume will be a Virtual Meeting with respect to the election. We may not even have results by then. I want you to take us out into december and into 2021. What is the economic run rate right now . Doesght now the economy seem to be improving. Seeing improvement in the labor market, housing market, manufacturing numbers. So it does suggest that the u. S. Economy is rebounding from that extremely low level we saw in the Second Quarter. But i hesitate to say we are in a position for a vshaped recovery. As the fed has pointed out, covid remains the number one risk to the outlet, so we cannot get complacent yet. There is still a tremendous amount of risk that the virus poses to the economy into the outlook. And if we need to, we should remain very vigilant in terms of the safety protocols, in terms of wearing masks, social distancing, in order to give the economy open and continuing to move towards that point of the employment. But i do not think were there yet, and we do run a risk of a second wave of cases, a second round of layoffs which could keep the economy very and the make going into 2021. This is exactly why the fed has said that they are not even thinking about thinking about raising rates at this point. Interest rates are likely to stay in this very near zero range, this very low range, for the foreseeable future, for several years to come. Jonathan talk about how they manage the message tomorrow then, because tomorrow, surely the unemployment forecast has get an upgrade, given where unemployment has come down to. Absolutely. The Unemployment Rate is likely to be lowered in terms of the feds forecast, reflecting the improvement we have seen in the labor market. I would not expect much change around the inflation figure, would not expect much more optimism to be priced in in terms of the gdp forecast. That you are right, the Unemployment Rate, the forecast is likely to come down again, inflecting that improvement. But it is more important what we hear from the chairman during the press conference, and he will be careful to walk that line between patting the fed on the back saying the swift and Decisive Action we took helped the a further downturn and conditions in the Second Quarter could have been much more dire and balancing that against the risks. The virus still remains out there. Businesses have been able to stem that bridge in terms of staying open for several months, but if we do not see a meaningful way of separating the healthy from the sick or if we do not see additional fiscal stimulus to help bridge that gap for businesses and the american families, it is going to be very difficult to keep the u. S. Economy on this pathway back to a more prosperous and Sustainable Growth level. Lisa there seems to be a divergence between the csuite in america and economists with the csuite saying there is better is this performance across the board, and economists say you see that now podesta fiscal support runs off, you will see it lose a lot of luster. Have economists lost credibility in meaningful way or are they looking at something that perhaps the these we does not seeing . The csuiteerhaps is not seeing . I think most of Corporate America is focused on the nearterm outlook, focused on the minimal improvement we have seen from those low levels at the onset of the pandemic. I think economists are taking more of a longerterm view of where the economy is headed. Remember, the economy was already losing momentum as we were heading into 2020. We had slowed from a 3 growth rate down to 2 , yet Corporate America was still in did with the prospect of continuing the expansion. So economists were already recognizing that loss of momentum, and i think that has carried through and kept the economy in this fragile position, and then you layer on this pandemic and it will be increasingly difficult to get back to a more sustainable, organic level of growth. It could also be the Corporate America has become complacent with the unprecedented support from monetary and fiscal policy. Not get, so we do another fiscal round of support. Where do you see the year ending with respect to the u. S. Unemployment rate . I think it will remain elevated, they percent to 9 level. I do not think 8 to 9 level. I do nothing we go back to doubledigit. But the labor market is under extreme pressure. Payrollseen some new created, but if we do not see additional fiscal stimulus, if we do not see federal funding, if we do not see that vaccine, it is going to be difficult to continue these conditions that have allowed is this new hires or rehire some of those workers who have been pushed to the sideline. We could be seeing a second wave of layoffs or for lows, which could keep the rate hike, the 8 to 9 range. Tom yesterday William Gross talked about a 6 trillion deficit call. Others have come up above that number, as well, talking 1 trillion and 2 trillion is an arguing point. Are we able to find 3 trillion through 6 trillion of new debt for the american Balance Sheet . I think we could. The question is, do we want to . We have to be very careful and make sure were providing enough stimulus in the near term to get the economy back on track. We also did not want to create edges no barriers on the back end when the economy does begin to recover. Are we struggling under this insurmountable amount of debt that creates future barriers for growth and future generations . I think it is a delicate balance. We want to make sure that we get the economy back on track but not just in the shortterm, that were putting it on a longerterm trajectory towards a higher level of prosperity. Jonathan how delicate is that balance right now. I ask that with the yields where they are. Extremely delicate. As we have seen the deficit, the total debt, held by the American Public at record levels. That gdp is the highest level we have seen in the postworld war ii history. We are on an unsustainable trajectory in terms of continuing below to load debt onto the Balance Sheet. That said, there is not much we can do during this unprecedented times. We have to take on edges no debts, but we do not want to be irresponsible about it we have to make sure the programs put into play is going to the businesses that need it to continue to bridge this gap. We do not want fraud or abuse of these programs. That is very important at this point. I think the American Public has a much lower tolerance at this point for any sort of fraud or on this programs given what we. Id see with the first round jonathan i think most people would agree. Great to catch up. Lindsey piegza of stifel. Tom, we do have to reflect on where we were before this pandemic. People came on this program and said we were on an unsustainable trajectory and the next time we got in trouble that this deficit would be a problem, and what happened in the treasury market . It is what always happens. Treasuries, when they see trouble, rally, and yields came in. It allowed the treasury to act counter cyclically, and that is what happened. What are we doing once again . Questioning once again the same thing we questioned before they pandemic. Tom a massive shout out here to paul krugman, the laureate who has relentlessly stated what you just said, that when you get yield down. Up, whatever reasons, whatever the backstory, that is what you have seen. Jon, our twitter account is firing up right now. Think fromails in, i the united kingdom, and he points out my grievous error of saying that the mets are terrible, that they are terrible, and we need to bring up the factor that the mets are grossly outperforming the boston red sox. Jon, it is so bad, the red sox may get relegated. Jonathan depends what your benchmark is, doesnt it . I do not know if the red sox are a good benchmark right now. You cannot get relegation. Tom they relegated that to aa ball, the weather playing. Jonathan who would you promote if you could . Tom the rochester red wings, no doubt about it. Jonathan ok, should i get a market check . A lift. The s p 500 positive. And of a Stimulus Program washington, d. C. Coming confusion about where this economy is come police appear lisa that is the key question. You talked about the u. K. And up limit rate being the most fictitious number out there because of these furlough replacement payments. I am trying to understand whether this will be looked at in the realm of history is better than the approach the u. S. Took her worse, and there is a big debate about that, jon. Jonathan just about how you classify them. I think for the people on the ground experiencing it, these statistics do not mean a lot. When they feel right now in the United States of the United States of u. K. Tom i am going to give you the mermaid, great restaurants, three restaurants, they shut down the 2nd avenue location. All you need to nope your jonathan depressing. Yields up ahead of a fed decision, 20 four hours away. This is bloomberg surveillance. Word news. President trump will preside today over the signing of history mimetic deals between israel and the two gulf arab states. The president and his allies hope it will give him a boost ahead of the election. The leaders of israel, or rain, and the United Arab Emirates will sign the agreement at the white house. The west coast wildfires have now become a campaign issue. President trump and california state officials sparred over whether Climate Change is contributing to the blazes. The president insists that poor Forest Management is the culprit. My credit candidate joe biden called the president a climate arsonist and warned against giving him four more years in office. Meanwhile, the Trump Campaign says it has ramped up Television Ad spending by about 50 . A new round of ads will focus on the economy and will run for the most part in battleground states where President Trump is in a tight race with joe biden. In the economic recovery in china sped up last month. Retail sales grows. 5 from a year earlier. Coronavirus picked early in the year. Meanwhile, the Industrial Production and china rose for the first time in 2020. Has aeball, steve cohen deal to purchase the new york mets, reaching an agreement with a firm by the owners. Terms were not disclosed. A website previously reported that the offer value the team at 2. 4 billion. He already was a minority investor. Global news 24 hours a day, onair and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im ritika gupta. This is bloomberg. I did not know if we can never return to what it was, at least that is my perception at this point sitting here in september of 2020. I am not smart enough to prognosticate where we are going to be in a year, year and a half. Jonathan Citigroup Global head of m a. I think we are all trying to figure it out. Good morning. Alongside tom keene and Lisa Abramowicz. You can hear tom clearing his throat, as always. Equities pushing higher. S p 500 up by. 8 . 8 percent. T up 0. 06 yield on the 10year. Eurodollar, 1. 19, up about. 25 . Bit of dollar weakness this morning for the g10 peer tom lets look at remember be, renminbi, stronger 2, 3 days in a row. Strength in china, no question. Jonathan they are tolerating that strength. The Economic Data is improving peer to what if im really interested in the g10, what about rate not about rate differentials so much anymore. All about political differentials between the United States and europe inarguably the politics away from brexit, of course. Back ofbetter off the the fiscal agreement several months ago. That was the move to 120. It was about politics, not about Monetary Policy or about race. Tom there are a lot of other things that are good. One of them is trying to add up in the bloomberg terminal, the mergers and acquisition examine we are seeing, including what we saw in london. You get up to 80 billion, 90 billion, you lose count after 100 billion. A member of jones day, head of mergers and acquisitions command has many decades of experience in all different shades of m a, and were thrilled he can join us again. It has been way too long since you have been on. What is different this time around in the many billions of the m a derby . L differencee biggest the markets have many have focused on the Equity Capital markets, but the debt markets are just mind blowingly supported. Others on your show always talk about how that supports the equity markets, too. But it really is a great bone for m a. And if you stand back over those decades, m a generally tracks what the equity markets do. And i think were starting to see that. Well,lot of people say, yesterday is a oneoff thing. Tiktok is political, not an economic event. Deal was kind of for sale because of other issues that softbank has. Yeah, that is true, but there was a lot of other stuff. All the headline deals got, of course, the headlines, but there were many other deals, including a deal for verizon, the new york mets come all sorts of stuff. So it is much more active, no question. Tom that is great. Are we get the point, robert profuse at, where we are seeing transactions so the other guy does not get the company, like steve cohen goes out and takes the mets so larry and cannot them . Erian cant buy are we at that point with m a . M a is a strategic right now. There are a lot of financial transactions. In my personal world, it started to pick up again in august was some private equity deals. But it is mostly strategic. Was not think this deal probably even mentioned yesterday, they verizon deal. Deal, at least by comparison to the others, but it it ismost 7 billion, and designed to build out a part of verizons platform they do not have, the prepaid phone, prepaid cards. Lisa for sure there are a lot of deals that are strategic in a time to buy revenue at of meager growth. But things have gotten political, and i wonder how much tik tock is representative of the politicized m a backdrop versus idiosyncratic affair . No question that nationalism is a factor. You would not have said this before the current administration. But it is not just the u. S. Nationalism is a real issue in terms of crossborder deals, no question about it. And how we deal with this stuff Going Forward could have an impact. Whenever a significant crossborder transaction shows up in the boardroom, you have a lot of directors saying, gee, do we really want to go through this . Because it is a factor. The tik tock deal is unique the tiktok deal is unique. Most deals have some element of that. Well pushit may Bigger Companies to get with Bigger Companies. I know there have been regulatory issues and antitrust issues in washington, d. C. Come around big tech. Europe, it is a huge conversation about whether they should move away and move towards National Champions to european champions i can compete with china and with heavyweights in the United States, and i wonder if that is something that grips the United States, to push forward and allow the big to get bigger through acquisitions so they can compete with chinese companies. How are you thinking about that at the moment . That is an interesting topic for that kind of law school debate. That maybe has more traction in the eu, because the eu is obviously the eu. There have been rumors again recently about ubs and Credit Suisse. Obviously, that would raise regulatory and other issues. But maybe that would be something that would fall under that kind of category. The u. S. Is different. Politics plays a role your it and when the president says something about a deal, the stuff people who deal with these things think about it. But it really works out in a much more granular, technical way in the u. S. It is done by people who are largely apolitical. I know that is hard to believe. But in many cases, these are career staff people who are trying to do the right thing, rather than follow the political news. Great to catch up with you. Robert profusek, jones day, head of mergers and acquisitions. We go back a number of weeks now when we had the tech hearings on capitol hill, and was a facebook argument from mark zuckerberg. We need to be big because we need to compete with china. If you want our values to dominate, then allow us to be as large as we are. A week later, microsoft in the running to buy tiktok. I know that story has changed, but that is the argument from big tech. Allow us to compete with china. Do not break us down. Lisa i think it is a really good point. I think it is great bob brought up the Ubscredit Suisse point, because that is very much to your point, an example of how perhaps the regulators will allow the two behemoths to get together to be more solvent. I do think it is a different story in the u. S. With some antitrust concerns still in the forefront jonathan agree. But did you ever think, tom, we would be talking about ubs and Credit Suisse after the last few months . Down in, i have walked zurich many wonder, does switzerland need this two big banks or should they merge . Jonathan i have walked down e ou late at night. I remember that tom i do not remember it. I did not fall in the lake. That is what i remember. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Classics value we know the longer term is not looking good right now in terms of support for consumption. A lot of the stuff that is priced cheaply right now is a structurally impaired sector that was probably impaired before the crisis it looks even worse now. Dollar is weakening. Rest of the world is recovering faster. That dynamite is inflation. This is bloomberg surveillance with tom keene, jonathan ferro, and Lisa Abramowicz. Tom good morning, everyone. Simulcast on bloomberg

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