It is an extraordinary day. We are to have a conversation here on what do you do with your money given what we have seen. The fed upstaged by the bank of england today with actual talk about the process to affect negative Interest Rates. Jon they have stepped up the flirtation, that is for sure. In the last 24 years, the whole thing is relatively ridiculous. Theyre forecasting 4 unemployment for 2020, 2 inflation with rates still going nowhere. If they are willing to tolerate that, rates are going nowhere for a long time. Tom the dissidents of the press conference was some really weak questions. Right near the end, mike mckee stopping traffic with a question about the efficacy forward, the path forward for the fed. It is a mystery. Jon you brought up this News Conference a couple of times. Do you want to vent a little bit . Tom im going to vent. Im doing this with jon, who has real experience in europe. The questions that the ecb and see morengland informed them what we see in washington. Why is that . Jon i think the press go in as a packet the bank of england. If someones question was answered, you could feel it in the room. He felt it was your responsibility to followup and ask the next question. The next person thought it was their responsibility to do the same. I was fined at the Federal Reserve, somebody is writing a story about something and they feel like it is their responsibility to get a quote from chairman powell on that. Im not sure what the public good for that actually is and i find it waste of time. Tom what this means is that lisa was in the press conference, she would be going, mr. Powell, how about those highyield bonds . Lisa i would ask about the oil in my bedroom. Just to defend the press corps a little bit in the u. S. , there is a lack of direction of what more the fed can do. I think that is what you are seeing in the markets as well. They are pushing on a string that is getting thinner. That seems to be the concern a lot of people have. Haw. Need to hedge and if they give specifics, they cant do their job. Unless they say they are going to go negative, which a lot of people say is not in the cards. Tom a quick data check. Futures, 47. A 580 point move from off the press conference yesterday. The vix was in two points when i walked in the door. 27. 90. 12 90 on the two year yield. That is a big difference. The fed has been pegged at the twoyear even with a lower kilt today. Curvee have seen the gilt in the United Kingdom negative all the way out. That is the story now. Embracing the idea negative rates might be coming. Tom jargon free on blooomberg surveillance. Gilts from sea to shining sea. Gilt is a note or bonds. Jon used to get a certificate back in the way with a guilt edge. That was the u. K. Government bond. Tom Eric Freedman joins us right now. Question, you are going to work this week with the clients of u. S. Bank wealth management. What do you advise them to do given the cacophony from the building . Eric thank you so much for having us on. We think the path right now is to just wait and keep optionality in your portfolio. What i mean specifically is that we are not too far away from election, but it also sounds distanced from the vaccine. There is a lot of open questions about just how responsive congress will be. Right now, we are in this period of not really an edge in terms of what i and other investors can forecast. When will a vaccine arrive and when my Congress Take action . Someiewpoint has been own growth, but also recognize we are going to be in some rocky roads. Keep full faith in credit in your bond portfolio and lets see how price really drives action across both fed and congress right now. Lisa given the fact prices will likely go higher, this seems to be the tone across the board, people saying there is going to. E a resurgence at what point do you worry about that, given the fact that the fed is not raising rates anytime soon and is willing to do whatever it takes . Eric one of the things we are really gauging is just a market psychology on what i would call the depriving equity nature of that reflation trade, which simply means there is going to be a bit of a j curve. Markets will probably head a bit lower before they had higher on the reflation trade. When we see things if you look at your bloomberg, s p vix levels one and two, sectors that have not performed well, that is likely going to happen when we have much more clarity on vaccines. For those investors that are not really punch mark aware or care about how my doing versus s p, they can start taking on some of that risk recognizing that is going to be time delayed. For People Like Us that have to invest relative to benchmarks and answer to investors, it may be a bit too early to put that on. We think negative Interest Rates are significant. We think the fed has basically said we are going to keep a very accommodative policy for a very long time, but we need some help either from a vaccine or congress or clarity about the election. Jon just want to get to equity futures. We break down a little bit more. The s p 500 down now 48. You see the epicenter of the pain is not just that nasdaq futures. It was a tough week last week and the week before. Some of that is building once again. Tom dow futures 307. That is a 600 point move from the fed Meeting Announcement yesterday. Why dont you pick it up . Jon i know exactly what you are doing here. Eric freedman, great to hear from you. Lets just start away from the dow and away from the equity market and talk a little bit about Financial Stability. This so been on top of much over the last few months. What is the fed doing here . Is Financial Stability a consideration for them . Eric i think you nailed it in the last hour. The fed is basically waiting for help from others. If you look at the tenuous position we are in right now, we are literally less than 1 away from the intraday lows and futures we saw in nasdaq on both the eighth and 11th. We are at this point where the fed is saying, if price is truth right now, if it is it really and easily for castable event, then we have to keep Financial Stability very high. We have to keep liquidity markets open. The signal liquidity is going to be there for a long period of time. The fed is basically saying, we are going to wait and see if we get help and if we dont, we may have to make this nestle builds bigger. We would rather have others contribute. Tom do we have financial instability . I know you have the 900 million check from citigroup, but where is the financial instability right now . Jon i think we have clear distortions. Economies, one is doing terribly on the other is doing really well, and you set policy for both, do you not think we will have a distortion on one end . Tom absolutely. I dont see Bank Instability here. Jon no. Im not talking about the banks. Eric, in a low growth world, you bid up growth. If the Federal Reserve is sitting there and telling you they are going to stay at zero through 2023, you carry on doing the same thing. Im not talking about Bank Instability, i am talking about distortions. The Federal Reserve is effectively telling some people, keep bidding up risk assets because if anything happens, we will be there for you and if things get better, we wont stop the party. Eric i think that is dead on. I think one of the epicenter to consider his real estate. If you look at real estate in manhattan, you have a real distortion in terms of the difference between where offices are occupied and what the forward path might be. One of the things i think the fed is saying is that amongst all of this uncertainty, we want to make sure that you understand we can do more. Perhaps it has a diminishing effect, but we are going to be there in absence of others. I think that is important for us as investors to hear. It doesnt change our fundamental view, but if they were to consider that inflation is a concern and we may make that nest smaller, that would be a source of financial instability. We have enough opportunities for instability without the fed changing tune. I think that is at least a net positive in something the fed has to carry on. Jon great to catch up. Lets get to the price action at the moment. Stocks, equity futures just rolling over a little bit on the s p 500. 50, down 1. 5 . The bond market, down three. In Foreign Exchange is just a stronger dollar against the bulk of g10 with one exception, the japanese yen. Yen,is a stronger japanese just reflecting some of that diminished Risk Appetite this morning. Breaking out a new weakness. I look at the move in futures, 51. You really wonder about the fed or is it just talk of negative Interest Rates . Jon coming up, helane becker, cowane Research Analyst from new york. This is blooomberg surveillance. A President Trump has fogged out some of his top officials. He contradicting them out in News Conferences saying it Coronavirus Vaccine could be distributed widely to the public by as early as next month. The cdc director told congress the vaccine would be distributed in the second and Third Quarter of next year. The president called those comments a mistake. At least one person was killed and hundreds were rescued after Hurricane Sally came ashore near the floridaalabama line. Pensacola,hit florida and other cities in the region. Sally is now Tropical Storm that could drop up to a foot of rain in parts of alabama and georgia. Barrney general william says the black lives Matter Movement doesnt care about black lives. It wants tor says use African Americans killed by police as props to advance a political agenda. The attorney general also suggested the issue of black on black crime as being overshadowed by Police Killings of minorities. Details of that proposed deal between apple and tiktok are going out. The Administration Still has not signed off on the agreement. It was a stockmarket market debut to remember for snowflake. Shares of the eightyearold Software Company sold as much as 166 on their first day of trading. Global news 24 hours a day on air and on bloombergquint take powered by more than 2400 2700 journalists and analysts in more than 120 countries. I am riddick of lucca. This is bloomberg. Vaccinated,eryone logistically, that is going to be tough. They will be tens of millions of doses available by the end of order. R and in the first as you get to the end of the first quarter, hundreds of millions of doses. Faucihe good doctor, and redfield really under fire from the president. We will see how the president reacts again today. I would say look at their resumes to see their qualifications. At sentiment from holy cross and agenda men from georgetown, a small medical school just outside of washington. Lisa abramowicz and tom keene. We welcome all of you to an exceptionally important conversation that affects all of our listeners, all of our viewers on this simulcast. Helane becker joins us with a zillion years with cowen following the airlines. They observe the Wright Brothers on the beach a few years ago. Are esteemed. Ou as the president going to get the airline trauma solved by the end of september . Are you optimistic there will be aided from washington . Helane not really, no. Is some appetite for it, i think it is going to either go very close to the wire. The chances are that it wont get done in time just based on the way things seem to be going right now. Meantime, airlines are raising record amounts of debt. I believe the total is well over 100 billion for total debt raised this year. Is this the right approach to just raise money to burn . Helane no, not really. On the one hand, it is the right approach to raise money to maintain liquidity. Hand, one of the initial restrictions on taking the cares act money was airlines would maintain service to a number of communities. Some of those communities probably dont deserve service, not because they dont deserve it come but because nobody is flying to work from those communities. They are just flying ghost planes, basically burning cash. That is not the right way to manage this business right now. Lisa we are looking at passengers not coming back in the same kind of velocity it says they had been last year. Up to 20 and 25, possibly beyond by other projections. There is a question over whether some of these airlines should have just filed for bankruptcy, restructured and gotten themselves a clean slate. Do you think that is the inevitability anyway as people stop returning to airplanes as tom keene watches the flight path . Helane i dont think that is the right solution because the cost per capital over the past five or seven years has been very low. Their labor costs are not out of line with what they should be, for lack of a better word. Tohink that if they were restructure through the bankruptcy process, their cost per capita would go up. American airlines has earned almost 12 . I would just say on americans balance sheet, their cost per capital is under 3 . Why go down that path of bankruptcy . They gain nothing. Tom you thought we had you want to talk about the airlines. The fact is, lisa and i are dying to go new york to heathrow december 5 for arsenal against tottenham. Lisa you got that right. Tom it is going to be a derby in london. As jon ferro points out, the easy way to fix this internationally is to get jfk to heathrow, newark to heathrow going again. Why cant we do that . Helane we can. We absolutely can. I think that is a big part of the problem is governments are not allowing their people to travel. Over to y over labor day weekend, almost one Million People traveled per day and that was the best we had seen since march which means people want to travel. In the u. S. , newark, new jersey with quarantine roles. London is actually open. The u. K. Is open. You guys can go, you just have to go two weeks prior. Tom come on. The high ground here at cowen. Why cant the airlines and public and private owners of these airports fix this so we can affect normal travel with testing . To me, it is like the easiest thing out there. Why cant we do it . Helane that needs to be done, i agree with you. If the airport industry, airports and airlines get together, get the tests, the 15 minute, you get to the airport the only negative with that is if you get to london and one person on your plane has tested positive, you are all quarantined. Maybe that is not the best solution, but it is a better solution than what we have going on now. Tom never enough time. Thank you so much. I would love to do something with your team, like a joint interview with cowen. This is really important. The symbolism, jon ferro, which is, solve the easy things and you think they could to solve that i need to go to the tea shop between burberry and bottega and heathrow. Jon someone tells my microphone when you started talking about futbol. It has been dead for the last five minutes. For me, i think it is absolutely ridiculous. I think everyone finds a thoroughly depressing. These companies dont want bailouts and dont want to go bankrupt. They just want to operate and people just want to travel. If they sort out testing, we can do that. This is what happens if you go to bermuda. You would get a test 72 hours before you go there and a few tested negative, you go to your hotel, once you get the results, if it is negative, you can go around. You get tested a couple of days later and a couple of days later again and you can move around the island. You can go in and out. New york and london is not an island, but surely, we can test. Think about how much money we have thrown at this issue. Trillions. Where is testing . Front page of the Financial Times today, massive issue in the United Kingdom, how long it takes to get your test results back. If you are positive and you have been Walking Around waiting for the result, what use is it . Intong, here we are going tom if i am a breezes in cambridge beach in bermuda, i can be tested right there at the bar before my return to america . Jon im not sure they will do it at the bar, but im sure we could sort something out for you. I just cant believe that here we are. Money is not the issue. Policy is. That is the problem. Tom i think this is just so important and we can learn from the process of the airlines and bring it over to other parts of the economy. Lisa this is the reason i kept asking about debt. This area has raised so much debt to stay alive. What state are they going to be left in afterwards . We are going to be paying more for everything we do on these airlines in order to keep going at the pace we are normally jon dont worry about that. The front of the plane subsidizes the back. Tom is going to pay up for us. Lisa thank you. Get to london. Jonathan treasuries rallying into the Economic Data in america. From new york city and the city of london, but morning. Equity futures down 47. Yields lower four basis points to 65 2. 65 on u. S. 10 year. With your Economic Data, here is Michael Mckee. Michael we will go with nonseasonally adjusted numbers given the way they have calculated things. Number, that is a decline of almost 76,000. The first bit of good news we have had in a while. The seasonally adjusted numbers, 860,000, that is a decline of 33,000. No matter which data set you look at the news is better. The pandemic unemployment assistance, the assistance for toelancers, drops by 210,000 658,000 during the week. The total number of people who are receiving benefits is up. 29,768,000. That is an increase of 98,000. Caveats. Achts two this is the week labor day was included in the data. We are probably seeing a decline that is not real. It may have declined, but the magnitude probably is not as real. The other thing, people are starting to question the pandemic unemployment assistance , the program set up for freelancers and gig workers, they wondering if the states are not counting correctly or if there is fraud. The question even extends to the Federal Reserve. Jay powell talked about this yesterday. The pandemic unemployment assistance claims, that is a new system that has to be set up. The actual counting of the claims is volatile and it is very difficult to take much signal about the particular level. You want to take signal out of todays numbers because of the holiday and the strange numbers in the pandemic assistance . That is up to the folks on the trading desk. What other number, housing 1,416,000, down 5. 1 . Building permits down. 9 . The first decline we have seen in a while in housing starts. The reasoning housing has been strong has been the mortgage market. Rates, 2. 86 last week. That is the lowest ever. Barstoolefinance his to pay for all of the airlines. By yesterday and closed, closed, close. Ive a question before we get to Michael Gapen. We are forgetting the magnitude. You do a great job on the numbers. 880, 790, wene is are miles from 220,000, arent we . Michael we are. That is something to keep in mind. You look at what the fed said yesterday in their economic projections. We do not get back to the neighborhood of the Unemployment Rate in february until 2023, when they think at the end we will be at 4 . We were at 3. 5 in february. We are looking at a slow labor market recovery, at least from the fed point of view. Tom thank you, and thank you for stopping the press conference yesterday with the important call late in the affair. Right now Michael Gapen with us from barclays. I want to get away from fed policy and talk about where we are in terms of gdp within q4 and then into 2021. I think we have lost sight of the guessing of what real gdp will be. Greatl good morning there has been clear evidence of deceleration in the data this week. We came out of locked and things bounced strongly and that gave a solid momentum into july. The retail sales data yesterday, coming in down on the month, i think tells us there is a lot more momentum as we headed to q4. I know we are all used to every deadline bringing action, but phase four is on life support. If we are not getting any additional benefits for households and the replacement of lost wage and salary income, it does look like the pace of improvement is going to slow. Somewhere in the low to mid Single Digits for growth rates ,n q4 seems to be reasonable which would be a significant deceleration off the roughly 25 that consensus is looking for in q3. I think it is related to two things. The shift where we have all the codes we will buy, and so further growth has to come from services, and we know those are covid affected areas, and fiscal stimulus keeps getting pushed out. Those are the two forces that mean things will decelerate into q4. Lisa is all about jobs. As Michael Mckee was saying, there is increasing concern the jobs data is messy. How much integrity does this data have . Michael it still has some useful integrity. I agree with the need to downplay any signal from the pandemic numbers, and even the initial claims data is something we are paying less attention to. Continuing claims still seems to have a pretty good signal. The direction seems to be one of more modest improvement. This is just one of those periods where it is a data point that has lost some of its relevance. Over time it will become more relevant again. We just down weight some of the signal, but we do not ignore it entirely. Jonathan you have your finger on the pulse of the conversation we had through the summer. So many people expected that late slow down. It did not develop and they capitulated and it breaks the idea that what we are seeing is a selfsustaining operate. Are you saying what we need now is more physical juice more fiscal juice . Ive tried to be consistent in saying we do think another round of assistance for households would be critical in terms of providing a greater bridge and underpinning the virtuous cycle. Lockdown coming out of because households have resources to spend. Personal income in july was 7 above where it was in february. Wage and salary was about 5 below where we were in february. It was the federal assistance that was key in helping to underpin that initial rehiring and therefore improvement in production. I think a little more could break us into year and would be useful. I think a little more to bridge us into year end could be useful. It is not to say the recovery could recover without it, but it would be slower and more uneven. Jonathan is that what chairman powell is waiting for . Michael it sounds to me like the message he said yesterday was we have done what we are going to do and we are implementing flexible average inflation targeting curate will be at zero for the next three to six years. We will be buying assets for the perceivable future. The outlook from here is heavily dependent on fiscal policy and whether or not we get a vaccine. We will have to see how those develop. Tom the president tweeting out vaccines coming very shortly, literally a matter of weeks. I believe the Science Committee would disagree with that. What if we do not get fiscal policy . What does that due to anybodys gdp guess . Michael probably more than a 10th of a percent. Most forecasters have been penciling in 1 trillion or more. They would be bringing down 20 21 growth forecasts markedly. The vaccine would push things in the other direction. We actually put in a relatively small phase four package, we put it in in our forecast in march, it was 750 billion. Billions are not trillions. I would say we have less adjusting to do on that front, but i think youre talking more percentage points, not tenths of a percent if we are not getting phase four spending or something beyond the election. Lisa how worried are you about scarring on the labor market, particularly with younger workers who have some of the highest Unemployment Rates ever . Michael at the moment i have mild worried to medium worry, and by that i mean when the Unemployment Rates come down and the level of unemployment has come down, but underneath that, the number of unemployed workers being classified as permanently out of work, that number is rising. It was a little over 4 million last employment report. The bad news is it is rising. The reason i would not say im extremely concerned is after 2008 to 2009, that number was over 8 million. There is some evidence scarring and labor markets is happening, but on a relative basis it is only about half as bad as we thought after 2008 to 2009 and we will see where the number goes. No vaccine means the number will get higher. If we do get a vaccine widely available around the middle of next year, that should limit the degree of labor market scarring. Jonathan always love catching up with you. Generous with your time. Michael gapen of barclays. A touch on the price action as we count down to the opening bell 15 minutes 50 minutes away. Equity futures breaking down overnight and we stay there. , deeper the s p 500 into negative territory on the nasdaq. We take a look at foreignexchange and talk about it the exceptions to that rule is the japanese yen reflecting that risk aversion. Market, a bit into the long end of the treasury curve, bull flat, the young end the long end rallying curate down five basis points on 10. That is the market story. You have to talk about the politics. I know youve been on top of it all morning in a blast when he four hours. There is a real debate over the vaccine and when the vaccine will be available and widely distributed. The president has made several comments on that this morning alone. Tom part of studying microbiologys you learned very quickly how dumb you are and how gifted the scientists are. Forget about any opinions. It is an outrage how simplistic the debate is as compared to the complexities of the science. This is complex stuff. They raced to try to end this horrific pandemic. Jonathan the other thing we need to think about is human psychology. How many people want to get this given the way it is played out . We touched on this earlier this week. Tom let me make this clear. There are all these billionaires about this that, and the other thing. Bill gates is hugely qualified to speak on vaccines with what he and his family did in africa. You could hear the fury in mr. Gates. Says, what peter baylor ence. Wtf sci jonathan what does that stand for . What does that stand for . Lisa really, jonathan. Jonathan should i look it up. Ive been trying to get tom in trouble for years. It is a place you land on an airline. Wtf. It is where you land. Jonathan ok. I am sure. This is bloomberg. With the first word news, i am ritika gupta. President trump is moving closely to a bipartisan plan for more stimulus spending. The president says he likes the compromise one point 5 trillion dollar proposal from a Bipartisan Group of house members. He urged Senate Republicans to go for the higher number. There has been a monthlong deadlock over another Coronavirus Relief bill. Laid a keyon has concession on his controversial brexit plan. He has agreed to give the house of commons veto power over whether his government and override parts of the brexit divorce treaty. Members of his own conservative party have threatened to rebound. Threatened to rebel. , the is harder to solve coronavirus pandemic or climate change. Erik schatzker put that question to bill gates. You can catch that full conversation at 2 00 new york time plus more throughout the day from the bloomberg green festival. 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. Am ritika gupta this is bloomberg. To consumerirect has been the key takeaway, whether they go direct to consumer with their own stores, it is important that brands control their future. Jonathan robert burke. , 1. 5 . Utures down 51 in a moment tom will go find a new purse. Before we do that, in about 10 minutes i will catch up with troy gayeski. You enjoy yourself. You are excited. Tom is a great person from a great new york city, troy gayeski will be wonderful. These markets are certainly on the move. As we talked robert burke earlier, new York Fashion Week and what it means for our audience on global wall street, you can go back to a girl who showed up in new york and said i am here when she was 18 years old. She stopped traffic years ago with a tshirt on the tonight show, and that was Rebecca Minkoff. Of aoins us on the state collapsing fashion industry. Rebecca minkoff, wonderful to have you with us. How will you make it to the other side. Youve been resilient more than anybody i know. How do you get to 2022 . Rebecca we get there by being , and you, innovative have to go back and flex your entrepreneurial skills. This is the cast this is the test for any entrepreneur. Nothing short of a miracle keeping our company together. Tom i cannot imagine when he first walked into Robert Burkes and sawyer product on the first floor or the fifth floor. Years in three two or three years, will people like you have product in Department Stores or are you done . Rebecca we are not done. The pandemic has changed everything and overnight 70 of our business was shut down, but we are seeing Stores Coming back, it will be slower, it will be different, the relationship will change but we are getting requests for orders we cannot fill from these stores. Lisa where are these stores . In big cities or is the location changing . Rebecca we have had requests from our past stores, whether it is the nordstroms opening back up or as these things get allowances, they are in the bigger cities. I do not know if you will see a huge resurgence with Department Stores in smaller cities, but we are seeing specially stores around allowed to reopen are also requesting products. It brings back certain staff that are wholesale only because we cannot service these clients as well as we need, but we are bringing back staff we had furloughed to service those clients. Lisa how do you compete with sweat pants in an area of working from home . Rebecca we have a popular sweatshirt we have had for several months that we cannot keep in stock. We have a sweatsuit coming this holiday season. You will get a hoodie, you will get address. We are listening to our customer and giving her fashion that is very comfortable. Tom i want you to talk about how youre going to branch out. It was one story and youve gone so far beyond. Minkoff,mowicz needs there is no question. The creative survival, where is the product discrimination going , what is your vision of how you will parse brands over the next 24 months . Rebecca we are seeing a complete fashion resetting. We were all on a hamster wheel. One of the things we did with launching little minkoff is inventory list. 95 biodegradable and theres almost zero weight. They print the pattern on the fabric. We are expanding that to women. We see a woman is becoming more conscious about weight, about fashion, and its harm to the environment and workers, and so we are embracing that and utilizing everything we can to grow that segment. Greene. Lled rm that launches endoscope weeks, in addition to the little minkoff which is already there. Lisa as an entrepreneur, is amazon the enemy . Rebecca today there is a big divide, many divides, but i think that right now we are selling on amazon. Wentntire business offline. We need to be able to find partners that were nimble and rick, and so we have an incredible partnership. As long as you can set the rules and they are followed, there is a fantastic place to be. Tom i look at the tax structure you have to deal with. You have politicians looking for the rich people buying Rebecca Minkoff stuff. What kind of support do you need from politicians . Rebecca i think they need to turn their sites elsewhere. They should worry more about equality, they should worry more about making sure people who are not with jobs and who need more financial help get that support. We elect these politicians and they should be worrying about the people that need help the most versus crushing businesses that are trying to survive and contribute to the economy. Tom very good. Rebecca minkoff, too short a business. Congratulations getting through 2021. Rebecca minkoff. One of the lines is little minkoff for ages four through 12. A perfect accompaniment, lisa abramowicz, to the autumnal season. Lisa yet am null season is the political season, and i think the autumnal season is the political season, and i think the focus shifts to washington and the state legislature. New jersey talking about raising taxes on millionaires. There is a question of how you rebuild state and cities with money you do not have while also not chasing people away from said cities. This is the dilemma, and we heard yesterday from kathy hogle, they do not want this to be a high tax state. What is the other option. Tom what is the other option . Case whether every it is bloomberg nationwide on sirius xm, it is all the same, you have to grow your way out. That is the solution in europe. The new jersey governor chiming in with others with massive fiscal issues. The market this morning, futures 53, but the bond deterioration is tangible, and the surprise on this morning is the two year yield comes in. Lisa i am watching the 10 year and the 30 in. A repudiation of what fed chair powell was saying yesterday, which is they will do whatever it takes to get inflation. The market was saying you will not get inflation. This highlights the fear. What more can be done without fiscal support and what more can washington do with such a heated political season . Tom i would suggest the backdrop with the president this morning. I believe the president was on fox sports as well with a wide set of tweets getting out on the vaccine, on north korea as well, but also previous tweets early this morning on his belief in what we will see on the election. What you need to know in the markets, futures deteriorating on Bloomberg Radio and bloomberg television, more coverage of these challenges. Futures 60. Good morning. This is bloomberg. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Jonathan from new york and london for our audience worldwide, good morning, good morning. This is the countdown to the open and that starts right now. Your equity market breaking down 58 points on the s p 500. 1. 7 percent and we begin with the big issue. Zero rates through 2023. The dovish tone of the fed will continue through the end of 2023. I was little surprised. Powerful forward guidance. No increase for the next five years. Takes off the table the idea of negative Interest Rates. They have not completely ruled out negative rates. The fed has more ammo. I have learned to be humbled by how many rabbits the fed can pull out of a hat. They can be very constructive and creative when they need to be. Clearly chair powell is worried they are running out of rabbits. There is a requirement for this fiscal st