Election story, and whether the market is saying we want to seek some safety and the dollar is the place to do that. The yen was trading lower against the dollar a little bit earlier on, but eurodollar now trading with a 1. 17 handle. What youre seeing in germany, u. K. , canada, and the United States is quite a sharp curve flattening, pivoting around the tens. The 30s are down quite hard in terms of the yield, so a big bid at the back end of the bond market. Alix all part of that is the virus story you were discussing, so lets get to that. U. K. Chief scientific advisor warning of 50,000 new cases a day by midoctober if urgent measures are not taken. Cases are increasing. Hospitalizations are falling. Deaths unfortunately will follow that, and there is the potential for this to move very fast. At the moment, we think that the roughly is doubling every seven days. If we dont do enough, the virus will take off. If we do not change course, we are going to find ourselves in a very difficult problem. Borisprime minister johnson will address the house of commons tomorrow on the virus, expected to impose additional restrictions. Joining us now for more is Council Chair for the british medical association. Does the u. K. Need a lockdown 2. 0 . We dont need a full lockdown. But we need is some very robust, clear messages, clear protocols, and Decisive Action and enforcement to prevent the virus spreading. Remember, after the first lockdown, we got down the daily new cases to around under 500. Now it is above 4000. So we know it is possible for people to behave in a way to prevent spread. We need to get back to that, and there are some simple but enforceable decisions the government needs to make sure happen in the coming days. I am wondering where the new cases are coming from. There is a huge debate about whether or not we should be sending children back to school, whether people should be going back to their offices, whether or not they should be socializing in the evening. Where are we seeing most of the cases coming from . Chaand in the u. K. , and this is replicated in europe as well, the new cases have originally come from younger people, which is why initially, we saw an escalation in cases, but not an torease in hospitalization any large degree. What is worrying is that how those cases amongst the younger population are spreading to people who have underlying conditions, two older people, and we are now seeing significant increases in patients being admitted to hospital on a daily basis, and also seeing significantly increased numbers who are now on ventilators. That is not the same as the levels we saw during the first peak, but the warning is that if we dont act now, we could start to see a real magnified level of spread and hospitalization. So what we must do, the important point is how do you reopen society in a safeway. How do you allow people to go to work in a safe way . What restrictions should be in place at the moment to prevent spread . The priority really must be to bring down the infections and the spread of infection, and that is what will help the economy to reopen. By having a situation where we have several local lockdowns in the u. K. , what that does is it paralyzes those cities. There are several cities in the u. K. Which are under severe restrictions, basically a local lockdowns, and that is because the infection has been allowed to resurface in those areas to a large degree. What we need are very stringent measures, and that is not the same as a lockdown. I think we need a national lockdown, but we need real enforcement of measures. Alix this conversation makes sense to me in march or april, so i dont understand why this conversation is happening yet again at the end of september, and why different measures would make sense now if no one did them in the last six months. Peopleople bid chaand bid, during the first lockdown, stay at home and did not mix. People are obviously wanting to socialize. The important measures that any government needs to put in place is what the rules around safe interaction with others should look like. We have something in the u. K. That is called the rule of six, that allows members of six different households of up to six people to meet indoors. We know that the more households that meet indoors, the more chance of spread. That should be reconsidered. We dont have a mask policy in the u. K. That is consistent. For example, shops and restaurants and bars do not have to wear masks. We believe that is wrong. We believe that should be mandated and all such settings. There is a call in the u. K. Government to try and encourage people back to work. We believe that if people can stayathome and work effectively remotely, they should be encouraged to do so because the more people mix, the more chance of spread. We also believe we need to have much greater information to the population. I look at the weather every day in my local area. Local populations should be able to see the level of infection in their local area because we believe by having that realtime information, it may result in behavioral change. But also, we need enforcement. It may sound unpopular, but you have to enforce these measures now to make sure we dont get that spread, and many workplaces , many restaurants, many public settings are operating with people very close to each other, without barriers. It is clear, you dont need to be a scientist to know this infection spreads by people mixing. They need to mix in a safeway. Those are the measures in a safe way. Those are the measures we are calling for. Guy what is your expectation of the trajectory throughout the autumn . Clearly this is going to be affected by changes in behavior, but what we talk on this channel are the Economic Impacts of the virus in various countries. What do you think we are going to see in the u. K. As we go between now and christmas . How much activity to get think there is going to be . Will i be able to return to my office . These are the questions that people who run businesses are trying to figure out right now. What message would you send to them . Chaand i think the way in which our economy will have any sustained ability to resume properly depends upon very immediate measures to drive down the infection. Is not really an argument you should Prioritize Health over economy. The best thing for the economy is to bruising is to bring the infections down. If people can work remotely, theres no need to ask them to mix with others if they can do a perfectly Good Days Work from home. All workplaces need to have the right adaptations to keep people apart. If you have barriers and there is consistent use of face coverings, you will mitigate against the virus spreading. This is what i think should be done not just in the u. K. , but another part of the world. I think governments should invest in and support many businesses who may not otherwise be able to put in place those measures because most workplaces were never designed for people to work two meters apart. So i think there is certainly a need to support businesses to operate, but to do that in the white right in the right way. Others in the high street settings, we called for the of face masks and coverings to be available at the entrance. People should not be put in the position of infecting others. There are plenty of other measures. Restaurants should have probable should have proper separation of tables. I thick is about resuming business in a safeway, and that is a Sustainable Way to bring back the economy. Guy think you very much indeed for your time today. We greatly appreciated. Nagpaul, the chairman of the british medical association. This is bloomberg. Guy live from london, im guy johnson. This is the european close on bloomberg markets. European stocks down over 3 . Joining us now is seema shah, printable Global Investors chief strategist. What do you make of the price action . This wasthink some of in evitable. We just come off of a couple of weeks where investors were already starting to question the evaluation question the evaluations of equities. Theink as we get into virus, things are going to pick up. If you take a look at the last week, but was interesting is the rotation change. You have financial consumer discretionarys selling off, things performing less bad. The rhetoric was we are going to rotate out of tech, get some cyclical names. That is going to cause some churn in the markets. Much of that is playing out here . Seema that has certainly been an element. What you would initially expect is that after recovery continues to firm up, you see that bit of rotation away from tech and into more cyclicals. Unfortunately, because tech is such a heavy part of the u. S. Index. Is still very uncertain. It is still very dependent on the path of covid. From Asset Allocation perspective, how do you put that into actual investment . It just means you need to maintain some of that defensive positioning, which is where Health Care Comes in, were tech still comes in. These are the companies that investors should keep hold of because theyve still got the strong Balance Sheet and the positive cash flow, and there is a secular growth story there. Guy theres been this narrative over the last two or three months that europe is the place to rotate towards, that europe has had a better handle on the virus, that you want to get access to some of the story around the sustainability push that europe is putting in place. Does the virus in the surge we are seeing on this continent undermine that case for rotating money toward zero towards europe . Seema i would say it undermines it a little bit. The reason investors were starting to like europe more wasnt just because of the handling of covid. It was also because of a more , somic and credible ecb people really have confidence that they would do whatever it takes, and the second thing was the eu fiscal framework. Those factors are still there. Materializes,art i think we will have to separate europe and the u. K. Europe could be a lot worse than what we are expecting for the rest of the continent. From a market perspective, it still makes sense to have some exposure from europe, but we have to admit that there are growing question marks over this. Alix nor i norway once the Sovereign Wealth Fund to diversify more into north american equities, saying that will represent better Value Creation for all of the Companies Listed globally. Can you fight against that kind of money at the end of the day . Seema that is a very good point. The chemicals the technicals every day are going to be very significant drivers of where we see the market. You should have global diversification. If we have learned anything over the last eight or nine months, it is going to be different waves, different parts of the world doing ok, so diversification should be a part of anyones portfolio. Guy in the notes i read that you sent, you talk about the u. K. Being a value trap. You just referenced u. K. U. K. Assets may look somewhat attractive on a valuation, but Global Investors would do well to avoid this value trap. Why is the u. K. A value trap . Seema i dont even know where to start with the u. K. To me it just looks like a complete basket case. You have the brexit discussions taking such a negative turn at precisely the wrong moment, when Economic Data is starting to lose momentum. You have covid numbers picking up to the point that we may be the only country in the world where we are actually discussing another national lockdown. It just goes to show the kind of problems the u. K. Economy is facing. Yes, from a valuation perspective, maybe it does look more attractive than other parts of the world, but i would say that investors should be very worried because theres a lot of hurdles coming into the u. K. Over the coming months. Alix wheres the safety trade . Trade is stillty mega caps. I understand that these valuations, it is not going to be everyones cup of tea, but you have to look for the companies which are still going to be around in the next year or so. To us, the Technology Story is probably not going to be as strong as the last couple of months and start to fade a little bit, but technology is really a key part of our life going forward. So Big Companies really focused on technology is still our safety trade, and of course, the technical safe havens still have somewhere to go. Treasuries, it is expensive, but we think if times get potentially tougher than this, i think treasuries are still he good bet. Guy how much lower could yields go, do you think . Seema lets just look at germany. Limit . E really a lower if we look for five years ago, what are the key things is you nds atsolutely not buy bu that level, and look at where they got to. It depends on how the covid pandemic pans out. From my perspective, i know the underlying story is still pretty gloomy, but we have to remember that Central Banks are standing very firmly behind markets. Theres a lot of liquidity around the market, which mix it very difficult to see a significant correction in risk assets. To us, it still makes sense to be invested, but of course you have to be very concerning. Alix stick with us. Seema shah of principal Global Investors will be sticking with us. Theing up some steam to downside of the u. S. , dow jones off by more than 3 . S p off by more than two by 5 . More than 2. 5 . 30 year yield on by about four basis points. Gold selling off as well. This is bloomberg. Alix live from new york, im. Alix steel guy johnson im alix steel. Die jensen in london. This is bloomberg markets. Guy johnson in london. This is bloomberg markets. To the ceors spoke and cfo of Mahendra Mahendra. As we look at the auto business, that has been much weaker because of the lockdowns. Consumers have not been buying. We were at 50 capacity of months ago because of various stresses as well. That has gone up to 70 . I think they are starting to come back. Visibility is a little poorer in terms of what we would expect. It will take about three to six months to get anywhere close to normal, and getting to normal may take even longer than that. Our holidays business and hospitality has seen huge demand. Our resorts right now, because of how we need to manage the virus, we are only about 50 of rooms available for the because we keep them vacant for 24 hours but and so on. That is the Mahendra Mahendra ceo. If you want catch more of that, you can do that on Bloomberg Radio a little later today. Lets stick with the travel theme. The travel sector being hit hard today. Bloomberg intelligences Senior Analyst joining us today. Clearly, the virus is one of them. Lufthansa looks like it is accelerating its cuts, just a this view of the world and how downbeat it is right now. There also all kinds of pieces in the weaken paper, one of which talked about escrow accounts for travelers money that the airlines cant access until they actually deliver. The news gets tougher and tougher. How much more of this can the Airline Sector take . Reporter i think we are certainly looking at a multiyear recovery, and frankly, that reality is still settling in. If you look at what the airlines iag, the owner of british airways, just raised 2. 7 billion euros. Ryanair raised 400 Million Euros at the beginning of the month. Easyjet did 490 Million Pounds this summer. We are seeing very significant dilutions. Youve got to spread those future earnings across a much wider share base. It is not the money is being used for new business opportunities, m a. It is just being used to survive. Alix what kind of numbers are we talking about in terms of more government bailouts. It is very interesting. The u. K. Government has been pretty stingy with the airlines so far. You have seen them pretty generous support coming from the french government, the german government. Tens of billions of euros being doled out in those countries to help the airlines survive. When we look at the Balance Sheets, we look at how much cash theyve got, when we look at how much total liquidity theyve got, saying how long can they cover their costs, we think there is a good chance the airlines are going to need more capital, whether from the private sector or from the state, if this continues into the next year. Much,ob, thanks very indeed. Rob barnett of bloomberg intelligence. I will be talking to a number of the ceos of Global Airlines here. We will be talking to the united executive chairman, easyjets ceo, lufthansas ceo at the World Aviation festival thursday and friday. We are hoping we will be able to bring you some of those conversations, but just listening about the u. K. Government being stingy, if you talk to easyjet, very unhappy about the way things are being handled. He worried about the longterm economic implications of this, whether or not airlines such as air france or klm may uttentially be running ro economically in the future. The futures are still very much in survival mode. They are trying to figure out what they are going to do next. If you took a look at the Chinese Market, the Chinese Market domestically is kind of back to where it started. Nevertheless, europe feels along whale away feels a long way away from there right now. These are the numbers. They certainly make for bleak reading today. 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. Guy 30 seconds until the end of regular trading in europe. Wrapping up a brutal monday. Let me walk you through the price action and give your idea of what is going on. Extra selling as we have come through into the close in europe. That is the stoxx 600 down 3. 34 . Action. We have seen a bid on the dollar, which has caught a lot of people off guard. A selloff that has happened mid afternoon and then accelerated as weve gone through to the end of the trading story in europe. A weaker euro, but it is true across the board. The dollar is catching a bid even against the yen earlier on. I want to talk about where you are seeing safety coming in. I want to talk about a curve flattening not only in the United States but also in europe. There is the five, the 10, and the 30 in germany. Bid. E more of a the curve flattening, the yield moved dramatic as we see people pushed to the back end of the bond market. Fascinating story developing. Lets talk about what that has meant for equity markets. The German Market down 4. 5 . The cac 40 down 4 , the london market down 3. 46 . U. K. Assets underperforming more than most but the dax moving into pole position on the downside, down 4. 5 . Lets talk about individual names. There are a number of key sectors we are focusing on. Outperformancehe relatively in the defensive end of the market, utilities, health care, food and beverages. The staples doing relatively well. Telecom outperforming. It is banks, it is travel and leisure, it is the car sector, the insurance sector, and the miners coming under pressure. Alix talking about copper earlier on. The miners feeling pressure. Hsbc in the middle of this perfect storm we have been watching. Down 5. 2 . In a Pincer Movement between the u. S. And china, trying to figure out what it does with its u. S. Domicile. Also getting caught up in another Money Laundering scandal that is rippling across the entire Banking Sector, not just hsbc. 12. 37 . T is down time to raise money. There is also talk about escrow account. That money would only be made available. You see this and other sectors. This happened after the banking crisis in the great financial crisis. Then there is hello fresh. We are back to the defensive trade come the delivery story that works so well in march, april, may. Hello fresh back on top. Banks certainly a big side a big downside story in your. Alix no kidding. Lets get more on that. Joining us is bloombergs tom met cap. Tom metcalf. Bankss pointing to big that profited from powerful and dangerous players despite any kind of sanctions, despite any rules and regulations. Walk us through what we learned in this report. Dump of data and relatively unprecedented. Documents which are basically suspicious activity reports that banks file to the u. K. Treasury to the u. S. Treasury when they suspect something is going wrong. It is not definitive, it does not indicate something criminal, but what the report shows is to trillion dollars of transaction happened that were tied to these reports. The Bank Reported it and nonetheless continued with the transaction. That is how the process is meant to work. Is whether the whole antiMoney Laundering process is fit for purpose. Being fraction of these filed. It goes to show the huge volume going through and whether there is any way authorities can capture money launderers. Guy hsbc one of the banks involved. Other names, jp morgan, barclays on the list as well. Lets talk about hsbc. It seems to be in a Pincer Movement between a series of factors driving a data levels we have not seen driving it below the great financial level the great financial crisis levels. Yup the china story and you have potential further u. S. Sanctions. How does management deal with this . Is there anything hsbc can do to try to find a way out of the hole it is in. Tom shareholders are not particularly optimistic. And hong kong shares are back to 19. 95. It is that. It is not one issue. It is many. Hsbc has staked its claim on being a global bank and a gateway to asia. It needs the connection between the u. S. And asia to make that strategy work. Today not only have they come out of china. Questions over how friendly hsbc,g is looking towards but then you realize the complexity of this bank and how open it is to any number of risks, and then you have the a key driverch was and a lot of the downward share price movement. It is right in the crosshairs of a number of these downward trends, and that is what you are seeing in the share price. Are we going to see hsbc picking sides . It appears to be in the crosshairs of the u. S. And china. It is domiciled after the u. K. Is the current structure sustainable and you think investors would be happy if it went one way or the other end is that a choice they will make . Tom management executives have said for decades hsbc has walked this tight rope, and that is the source of the strength and how it managed to grow into one of the great banks of the world, blackandwhite and how they view the world. It may be simpler if you do not have to deal with all of these things going around. Then the question is where does that leave hsbc if it moves away from its global role . Where is the value it is adding and what is how it will sell at shelf cell itself to shareholders. On bloombergs tom metcalf the trouble facing European Banks. Still with us is seema shah of principal Global Investors. Economy that relies on its Banking Sector. The transmission mechanism works via the banks. If you take a look at what is happening with European Bank shares, if you were to extrapolate, you would assume the european economy is in a particularly good place. Do i make that connection between europes bank and the underperformance we are seeing in what is happening with european economy . Seema we do have to make some connection. The one thing we have seen over the last couple of months, we tell clients we like the macro, we think the macro environment in europe is improving. We like the fiscal side and the monetary side. The question is where you put your money . This is a real problem europe has. Not only have European Banks been undermined over the recent , they are also very tied into the growth aspect. Any there is bad news on covid thatrs, and then on top of , with yield staying lower plus this new report about potential Money Laundering, they cannot catch a break. It is a real problem for investors at this stage. Alix a report talked about how tcp officials are talking about a longerterm qe program. Lifting the capital restrictions, not worrying about the rating of debt, all that could be longerterm. How does that play into a mediumterm outlook for banks . It is a tough one. Whatever happens with monetary stimulus, that will only keep the pressure on the bund yields. That almost balances out. As weve seen in the u. S. And anywhere there is a pressure of margins, the Banking Sector will struggle. Until the Banking Sector in europe can do better, europe as a market will struggle to outperform the u. S. Guy we are starting to see consolidation. Ubs apparently has a plan for credit suisse. To the bigger banks in europe mean better banks . Investors have talked about the need for consolidation. If it does not come with Balance Sheet repair, does it deliver the benefits that consolidation should come with . Seema that will be a struggle. The need for consolidation across the financial industry is very clear. , allve so many competing losing market share. The price is not just any market cycle. This is something that will keep coming through and sizes everything in this situation. That will be the case going forward. Alix what would have to happen for you to want to buy European Bank stocks . What is the perfect scenario . Seema you need to have a much stronger European Economic outlook, which i think it is better than it was nine months, but are you still seeing followthrough from the covid pandemic. You also need to see a steeper yield curve. The way it looks going forward, that is not coming. Until we see that, i think the European Banking sector does continue to struggle. Guy a flatter curve today. A very much flatter curve, certainly in the german bund markets. It does not look like that is happening. We will have to leave it there. Always appreciate your commentary. Seema shah of principal Global Investors. Lets check where european stocks have settled. Selling into the close. These are the final numbers, down 3. 4 in london. The dax down 4. 5 . The cac 40 down 3. 7 . Banks down, travel stocks down every single sector in negative territory. Do not forget, you can tune into more coverage for what is happening in europe. Jon ferro and me taking you dabugh on the cable show on digital radio. This is bloomberg. Ritika this is the european close. Coming up, an exclusive interview with Federal Reserve bank of st. Louis president James Bullard at 6 30 in new london. 11 30 in this is bloomberg. Lets check in on the first word news. President says he plans to announce his pick to replace Supreme CourtJustice Ruth Bader ginsburg by friday or saturday of this week. Trump also told fox news he wants to see a Senate Confirmation vote for his nominee before novembers election. Trump has said he will likely pick a woman. Ginsberg died friday at the age of 87. Mike pompeo is planning new sanctions. Sanction as he unveils new sanctions on nations that do business with iran. He also referred to maduro as former president of venezuela in recognition of juan guaido as interim relator as interim leader. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Am ritika gupta this is bloomberg. Alix nicholas shares are shrinking after the founder step down. The company reporting the focus of investors by u. S. Regulators. Joining us is dan ives of wedbush. He has a neutral rating on the stock. This looks bad. The optics are not good. How do you distinguish between the optics and some reality within the short seller accusations . Dan is a black eye for the story, especially trevor has thisthe key visionary and company is trying to execute on a vision that has more wood to chop. For him leaving, especially what we have seen over the last few weeks, now comes down to execution. The Gm Partnership and its execution. No doubt a White Knuckle day for nikola. Guy this is from the prelisting perspective. Manyilton is the source of if not most of the ideas and execution driving nikola. How do you go forward if that is the case . Dan that is a question for investors. There is a lot of execution that needs to happen. There is no doubt trevor not being a part of this story, it is a gut punch for the vision of the story going forward. They have a strong bench, especially with strong board members. Right now for investors, this kind of came out of left field in light of what we have seen over the last few weeks from the bears. It is not what you wanted to see. His morning when you woke up alix nikola has serious investors behind it. Tesla got over the key man risk. Can nikola do the same thing . Has been a key part of the tesla story. In terms of trevor, a lot of what he needs to do is still on the horizon as we going to 2022 or 2023. That is also why the g. M. Partnership is significant. It ises down for them, about executing. For investors, it is in the investor penalty box. You need to prove out strategy. There is a black cloud over the story. You see that in the stock today. Guy do think there is a wider affect, nikola being one of the stocks that has been aggressively bid, do you think their faith in the wider story is shaken as a result of this . The face of the story and has been a huge part of the vision to get here. For investors, it is a major step back. That is why, as youve seen with other stories coming out is also about execution. For them it is a fork in the road. Thinkhat i met was do you there is a wider affect into other stops . Do think investors see this as idiosyncratic or is there something broader that could result from this . Dan i think it is a contained risk. I do not view it as a spread of fact in terms of what we see across tech. I see it as a stock specific issue. Guy thank you for your time. Appreciate it as ever. Wedbush securities managing director. Microsoft is making its biggest videogame purchase ever as they prepare to launch a new generation of xbox consoles in november. It is going to acquire zenimax media, odor of video owner of videogame publisher bethesda softworks. Emily chang is standing by in San Francisco with more. Emily . Huge deal for a microsoft, tied for its Third Largest deal ever. Joining us is phil spencer, head of xbox for microsoft. Thank you for joining us. You, elderive for scrolls, maker of doom, elder scrolls, fallout. Contractuallyill obligated as making content for sony. We have game pass growing fast, we have consuls going to preorder, we have launched x cloud last week into our Game Pass Subscription so people can play our games on their mobile phones, content is foundational to what we do. With this move we double the number of content creators we have inside of xbox, which we think is a great move for the xbox community. Emily once inside xbox, will bethesda then start making games for only xbox and pc and not playstation . This our commitment with move is xbox and pc and people playing on cloud. The collection of bethesda studios will be coming to xbox and xbox game pass. In terms of other platforms, we will make a decision on casebycase basis. This is a move to show the strong commitment to the xbox you community that great games will be coming. Emily as you mentioned, gaming traffic has soared. You have 15 million subscribers on game pass. Some gamers have been disappointed in some of the gaming offerings. How much of this is pull forward demand given the pandemic and what are the quarters ahead look like . Gaming is a strong growth category. It has been for many years. 3 billion people play games on the planet, half the connected world. Both of those numbers growing by double digits. Gaming is a secular trend in entertainment, people moving from passive entertainment to active entertainment. You see kids playing video games , minecraft, fortnite, it is a strong place for microsoft to make an investment with the transformations we are seeing in the business. King, so ient is have to ask about the tiktok deal. How big of a deal is it microsoft lost the tiktok deal . Phil we were pretty public about how that played out. I do not have anything to say with how tiktok is working, but when i look at our growth aspirations in the consumer space, i think our investments in gaming and reaching communities everywhere will be pulled to our longterm success with consumers. The Trump Administration is now pushing u. S. Gaming companies on their ties to tencent that means fortnite and league of legends, which are hugely popular on xbox. What is microsofts position . What if trump starts cracking down on fortnite and league of legends . Phil we have taken a longterm approach. We think people should be able to play the games they want to play with with the community they want to play with on the device they want. We work with Global Partners to be able to do that and we hope to continue to do that. It is a cornerstone of our strength of reaching food of reaching 3 billion gamers on the planet. Theres a battle between epic games and apple and google. Xbox has its own situation with apples app store. Do you think apple and google are monopolies like epic says . Phil we think gamers on generalpurpose computer devices should have access to service like game pass cloud streaming. That should be available to everyone. We will continue to work with a large mobile operators, we will work with apple and google and samsung, and i think gamers should have choice with the devices they have on the content they get to play. Emily tech markets have been choppy. Microsoft has seen a pretty significant rise given the work from home trend, but shares have been drowned since losing tiktok , shares are down today. What is your take on that reaction in the volatility we are seeing . Always taking a longterm approach for growth opportunities. Gaming is one of those areas that is a strong growing consumer category. It is an area where we have unique strength relative to our tech competitors trying to move in. This deal is a perfect example. Cinemax brought their first consul game ever, elder scrolls, to the original xbox. This is a relationship that has been building for 20 years. When you look at this category moving from device to player control, and our ability to deliver cloud game subscription to every player on the planet, this is a longterm growth category for microsoft and were excited to be able to continue to invest. You have new consuls out, a new acquisition, and a captive audience in the middle of pandemic. What is your outlook on the Holiday Season and how this might be different in years past . Phil a good question. Our preorders for xbox series x and s go live tomorrow. You hit on a point. This is a time where accessibility of gaming is important. We have the most powerful consul on the market the most powerful console in the most affordable consul, and programs like xbox all access, which allows someone to enter this generation of consul for 24. 99, it gives them the content they need. A successful point at a time of a lot of uncertainty for families. Uncertainty for families, indeed. Phil spencer, head of xbox, thank you for taking the time to join us. Huge deal for microsoft in the gaming community. I will send it back to you. Alix bloombergs emily chang with microsoft phil spector. We want to check in the markets. A pretty weak session developing. The dax down 4. 5 . Lower. N stocks 3. 2 the s p down over 2 . Getting a bid on the treasury markets, gold off by 3 . President trump now saying the u. S. Has restored you and sanctions on iran. Lots of different understandings as to whether or not that counts since they pulled out of the iran deal to begin with. The headlines will create whipping action. Watch oil for the as well. Balance of power with david westin is coming up next. This is bloomberg. 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. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. David from bloombergs World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. Welcome to balance of power, where the world of politics meets the world of business. Ruth Bader Ginsburg change the course of american law long before she came to the Supreme Court 27 years ago as a leading advocate before the court and on the court of appeals, she systematically built the body of law recognizing the equal rights of women, something today we almost take for granted. Two years ago her remarkable life and career were chronicled in an awardwinning documentary. A compelling story of a remarkable woman and what made her the legend we came to know. We welcome the codirector of rpg, betsy west. Professor west had a very distinguished career as Long Form Television news and document reproduce or at abc news. Betsy, thank you for joining us. This is their remarkable life. My condolences. I know