A simulcast on an important friday. So many days to the election, 25. Thrilled you are with us on radio, on television across this nation and around the world. I want to look at the markets as we frame up Michael Shaoul to join us in moments. Up 15 in a bid to the market. 3 below record highs. With that, some nice confirmations of good global news. Look at renminbi. Jonathan up on the week by about 3 on the s p 500. On ther chinese currency return from the holiday. The narrative has shifted aggressively, and in a short amount of time, from fears about a contested election to the potential of a blue wave. What we discussed in the previous hour is something we need to discuss in the next hour. How vulnerable is that newmarket market narrative shifting things around . Jonathan the Political Landscape here is most interesting. The president so far quiet on twitter. Hugely active yesterday across media. I guess an 8 00 p. M. Appearance tonight. You wonder what the president would be doing before he gets to tucker over at fox at 8 00 p. M. Lisa hes going to be holding what he calls the largest radio rally in history at 12 00 p. M. Basically, he is holding rallies to sway the polls. The market is really going all in with this blue wave narrative. How confident can we be in these polls that got it wrong in 2016, given how much people are going all in on this narrative . Tom i want to put this directly. This is pretty unusual. I just had a physical. I cant see the president on the set, in the little gown they put you on. Jonathan i just dont want to think about that right now. [laughter] in my head right now, let me tell you tom he will now reprise the move on fox. The president will undergo a medical evaluation from dr. Mark siegel. I want to make clear, dr. Mark siegel is legit. Imagine au just president ial physical on air . Jonathan i can try. Apparently it is going to happen later this evening. Should we talk about it, or should we talk about Something Else . This week has just been so bizarre. Tom it has. Jonathan i should also point out that siegel has had some pretty out there, speculative thoughts on a whole range of things without much evidence for it. I am sure we will all be tuning in with mr. Tucker later this evening. Tom Kevin Cirilli back in washington from the events in salt lake. Andt now, to refirm recalibrate on the markets is Michael Shaoul, at market field asset management. We are thrilled he could join us this morning. You are an expert in accounting. Does accounting matter right now in investment analysis . I think it always does 2020, end, but i think in in this period of great uncertainty, where what has just happened doesnt matter as what may be about to happen, i think at those points, accounting is less important than at other times. Jonathan how durable do you think this new shift is in this market . It just feels like this narrative is flipped. This narrative is still really young. How durable do you think some of the moves are in this market . Michael i still think the market got ahead of itself in august, when the election was not that big a deal. We had a real correction in september. I think you did take a lot of theunhealthy stuff out of market at that time. I think no one quite knows what a Democratic Administration is going to look like, but i think would be happy to have uncertainty behind us. If there is one thing we can say about 2020, we are all sick and tired of the degree of uncertainty we live with on a daily basis. The idea that the election can creditled, and a normal, wave at the end of november is understandably appealing to people. I am not sure whether in the end, a democratic sweep would be that appealing in terms of its legislative slate, but those difficulties would be something the market would start to digest in 2021. Lisa in the meantime, you are going to get a surveillance exclusive. We are going to start a drinking game every time someone say the word rotation, because that is a theme. The rotation out of the big tech names and into the cyclicals. How much further does that rotation have to go for it to be adequately priced in, given the backdrop of the assumed blue wave . Realel i think it is a phenomenon, and it is something we expected to happen fairly early, about five or six months ago. I dont think it is actually being driven by the socalled blue wave. I think the blue wave is perhaps an excuse for people to jump on board something which is already taking place. But i think provided it stays it is, and what i mean is not that large cap tech is correcting hard, but doing more sideways, the relative market cap between a sector such as technology or communications and very small sectors such as materials, but even the industrials sector, which is really quite small, you are effectively forcing a market cap in balance here that can lead to a really quite powerful move in some of these cyclical sectors. So i think it has legs. I think it has legs regardless of the electoral outcome. You may have certain subsectors which do much better with one outcome versus another, but i think this is a real and durable phenomenon, and it should be talked about by many people. Tom what does weak dollar or presumed weak dollar due to u. S. Multinationals and their Equity Ownership . The total think that return of u. S. Equities for nonus investors has been boosted by a strong dollar significantly since 2014. I think that tailwind is going to turn into something of a headwind. I also think that a period of cyclical outperformance is not terrible for the s p 500, but it is not that helpful. I think the odds are that you see more cyclical indexes such as the dax and the nikkei, and some of the large asian emergingmarket indexes like taiwan and korea are going to be able to post returns that are very competitive, particularly on a currency adjusted basis. Your to date, that is already the case. Gap on a the currency adjusted basis is pretty small at this time. Jonathan would love your thoughts on another trade related to a lot of this stuff. Right now, market short treasuries can get long bunds. What are your thoughts on that . Michael you probably have a currency headwind. I do think that if we have a breakout in global yields, it looks to me as if it will be given yields that lead the way. But i think generally, if u. S. Yields start to pay out, some of those yields will start to go with it. In general, i thing it is a good time to be cutting longduration positions in sovereign debt. I think that [no audio] tom jon, can you explain simply of ouri think so much audience, the greek yield is a complete mystery. What is the why of price up and yields stunningly down . Jonathan the new Asset Purchase Program at the ecb this year allowed it to buy greek debt as well, so peripherals are being crushed. Think the more important element of this is the redenomination risk that diminished a couple of months ago. Just taking a few steps towards further for fiscal integration in the euro zone, enough to reduce redenomination risk. But the difference between repricing redenomination risk on the continent, peripheral yields lower, and repricing the recovery in europe, i think the latter point is really what is being tested right now with the new Covid Response from spain, from france as well. Tom the differential on inflation vector, i dont think i have ever seen, where the u. S. Is gently upward, higher inflation. Theres just a rollover disinflation in europe. Jonathan that plays into the trade. Now,ar in germany right 54 basis points. Think about that. 54 basis points, inline with the depot rate. In line with the policy rate at the ecb. Is 12 basis in germany. That whole curve negative, and deeply depressed. That is the outlook for growth and inflation in europe. What you see in italy is something different. It is redenomination risk and a lot of qe bringing yields in. What you see in germany is a market that does not have a great outlook for growth and reflation compared to the united states. I think that is why people are getting comfortable with that trade in the last few weeks. Treasury yields can climb higher. Bunds can remain strengthened. Tom what do i do if i own italian bonds . Jonathan youve got a lovely capital gain. Do you want to hold onto it . Just recycle it back into that triple leveraged cash fund . Tom francine and i are doing a remote from gucci garden in florence. Jonathan serious conversations right here on bloomberg surveillance still to come, with Michael Zezas of Morgan Stanley. This is bloomberg. Ritika with the first word news, im ritika gupta. The Nobel Peace Prize has been awarded to the World Food Program. The United Nations agency was honored for its effort to combat hunger and Food Insecurity around the globe. Last year, the World Food Program helped close to 100 Million People in 88 countries. The white house is once again shifting its position on a stimulus package. Treasury secretary Steven Mnuchin told House SpeakerNathan Pelosi the administration now once an agreement on a largescale relief bill. Earlier this week, the president pulled negotiators from talks on comprehensive legislation. President trump will go on fox news tonight and get a medical evaluation. The doctor will be mark siegel, a fox contributor. He has previously speculated without evidence that joe biden is using drugs before debates. He has also said that House SpeakerNathan Pelosi should stop pontificating about the president s health. Louisiana is bracing today for hurricane delta. The storm is now a category three, with winds up to 120 miles per hour. It is expected to slam into an area of louisiana still recovering from hurricane laura. The hurricane has forced Energy Companies to shut down almost all of the Oil Production in the gulf of mexico and most of the gas output. 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. Im ritika gupta. This is bloomberg. Rep. Pelosi there is legislation that we had in the c. A. R. E. S. Act, which we hoped that we could continue for another six months or so. That expired at the end of september. Separately, but we cannot do it unless there is a big bill. Jonathan for negotiation continues area House Speaker nancy pelosi there, working on the latest negotions. Live on bloomberg tv and radio, this is bloomberg surveillance. Alongside tom keene and Lisa Abramowicz, im Jonathan Ferro. Getting you prepared for the market open, one hour and 12 minutes away. Equity futures adding just a little bit more weight to the rally of the week, up about 3 on the weekly s p 500, the biggest weekly gain going all the way back to august. Dollarchina gets your attention overnight. China tolerating a stronger currency. In the bond market, yields at record lows, greece, italy. In the u. S. , the 10 year yield 0. 77 , still around the middle of the range of the last several months. This getting some headlines from the rnc chairman mcdaniel. She tested positive for covid19. She says she is doing well. Goes on to say that the election is tight. Waiting forwe are first comments from the president after an active thursday. There will be fancy conversations today among fancy people in washington. There is no one in washington who covers our policy research inh tangible experience actually getting infrastructure unlike Michael Zezas. Ofs at Morgan Stanley, head u. S. Policy, but more importantly, cut his teeth at georgetown in the municipal finance of actually getting bridges built. I want to go down to the granular here. A great article a year ago or so of the worst bridges in the world, and they go back to the chester nimitz bridge and hullabaloo come up in honolulu, and stagger through the hemorrhage of construction we had in the 1970s, and it is all worn out. With this infrastructure we are going to see, are those bridges and all the rest of it, is it finally going to get fixed . Michael i think we are a couple of steps away from that. The stimulus package that is on the table, at least when it comes to state and local governments, they are obviously critical to infrastructure. They basically own and finance about 80 of the infrastructure in the u. S. He first round of stimulus, should it come through, is about plugging the holding revenues, not providing incremental infrastructure. If you want incremental on top of that, probably the political configuration you need coming out of the election is a sweep by the democrats. If that is the case, then they would have the motive and the opportunity to pass a large infra structure bill, and you could start plugging some of those holes, a couple of trillion dollars plus throughout the country. Stepseres a lot of before you get there. Lisa so lets not talk about fixing the bridge just yet. Tom will discuss that, perhaps, next year. Lets talk about who doesnt get paid if there is not a near term fiscal support bill passed in washington, d. C. How much can we expect state and local governments to have to lay off some of their employees because they cannot increase deficits the way the National Government can . Michael it is a good question. Lets start with some highlevel numbers here. Statesmate that cumulatively through the end of 2021 are going to be short on revenues about 180 billion. Local governments, about 90 billion, so 270 billion dollars total. How do you close those gaps . Youve got taxing or cutting spending. Youve got borrowing options, including the open market, but fed. The mlf at the here,a bit of a choice and i expect different states will make different choices. Austerity will probably be part of the picture and layoffs will probably be part of the picture, and i think barring will be i think borrowing will be, too. When all of this plays out, i suspect states are probably waiting to see if the stimulus negotiation in d. C. Is successful. Maybe they will even hold on a couple more months to see if the election gets you a configuration that makes it successful. , austerity has to kick in at some point. Jonathan you didnt mention default risk. Where does the dword fit into any of this the dword fit into any of this . Michael i think this was a conversation that was legitimate to have in march and april, but the fed opening up the mlf, which has capacity for about 250 billion of borrowing for states, means that if states effectively wanted to term out their entire revenue shortfall, they could. The fed is right there on the backstop. The revenue shortfall sort of creating a jump to default story i dont think is particularly meaningful here. The fed is basically offering the option to spread this out over a few years if needed. Tom the mix of what lisa was talking about and what i was talking about, what happens if we get sort of the same thing, but flipped . A democratic president , and still a Republican Senate . Then what happens to this huge demand for infrastructure . Michael it is a good question. Our base case doesnt see in that situation that you would get an infrastructure bill. Defund a mental problem on infrastructure has never been that the parties dont see the need for it. It is that they dont agree on how to finance it. Proposals always get twisted up around how do you increase spending without increasing the deficit or increasing taxes, two things you pay sickl you basically cant get a majority of republicans to do. On the democrat side, you would potentially be able to do those things, but in a divided government, you need the other side to agree. I think that infrastructure would just continue to be subject to gridlock. Jonathan Michael Zezas, good to hear from you, sir. Infrastructure week every week for the foreseeable future down in washington, d. C. Tom absolutely. , just read an article literally crossing the river thames in london is the coming sport because a number of those bridges are shut down as well. Stuff is just wearing out, right . Jonathan you can walk across them. The city is pretty quiet. What people are complaining about in the city of london right now, they have cut all the roads down. If you go park lane, it has been cut down to one lane now. Theyve already cut all the roads down to allow for cyclists to go through. If you get into one of the cabs in london right now, they are furious about it. Tom they cant do their famous uturn. Jonathan they cant do that anyway in some places, but they are struggling, and the city has made it harder to made to drive around london. Tom can the bentley get through . [laughter] jonathan what bentley . How about those markets . Or as lisa would say, let me tell you something. [laughter] lisa all right, jon. Jonathan futures up 15. This is bloomberg. Jonathan alongside tom keene and Lisa Abramowicz, im Jonathan Ferro. Stop stop on the week. The s p 500 up nicely stocks up on the week. The s p up nicely. Eurodollar 1. 1798. A firmer euro in the mix. Around, dollar all through g10 and against china as well. The chinese currency doing nicely and the chinese authorities tolerated it. That is the headlight overnight for the chinese currency. Well,otice the vix as 25. 8. The beginning of the week, maybe a week ago, 29. We have come in three or four big figures. You get the vix down, it is a different world. Jonathan implied volatility was elevated to year end on the back of this contested election fear, and a lot of these concerns have faded, relatively speaking. Tom an eventful friday to say the least. What we do on friday on radio and on television is get ready for the weekend reading and get ready for the next week. Stephen stanley is an expert. Won everyt he has trophy. What is the distinction . What is the update in your American Economic call . Down. N we are slowing we have gone through the fast recovery phase and gotten back to some percentage of normal. Consumption spending through august was 80 of prepandemic levels. Employment only a little bit only a little bit halfway back. Now we are sending into the next phase, which will be continued recovery but at a slower pace. Theres been a lot of discussion around the stimulus and in my mind, a lot of people are assuming the economy is entirely dependent on another round of stimulus yesterday. Certainly more stimulus sooner iuld push growth higher, but think the economy can continue to recover without it in the near term. What is the tom partition in america among goods producers versus Service Producers . Stephen it is stark. The goods side of the economy is back to prepandemic levels. Goods orders, there are a number of parts of the economy booming might be too strong, but certainly very robust. Even within the Service Sector there are winners and losers and it is a function of the pandemic and the restrictions that have been put in place. You have some sectors that are struggling like restaurants, and than other sectors that are flat on their back. Air travel, hotels. Jonathan that is the story. Everyone is calling this the case shaped recovery. I wonder how extended the legs of the k can get . Stephen that is a function of the virus. If six months from now we have vaccines and effective seems like notch an unrealistic scenario, then you could see a quick revival in some of those sectors having havele, even though they made virtually no progress so far. That is the difficulty we all have in the markets and the fed has. Visibility is not very far. We have a pretty good idea what things will look like in two or three months, but once you Start Talking about six months out, 12 months out, literally the scenario could be anything. Jonathan you think these shifts are covid dependent or is there permanency to them . Stephen there are things taken place that have been permanent. Some structural changes have been accelerated. For example the move to online retailers versus brick and mortar. That is something that has been going on for years and has clearly been accelerated. I think one of the most important things to come out of this will be the move toward work from home. There will be people who continue to work from home or at least work from home some days. Maybe that never would have happened in the absence of the pandemic. Business travel is permanently curtailed to a degree. We will see. Yes, i think there will be structural changes well beyond the point at which the pandemic is a memory. Lisa you think the disruptions will have structural issues for the market . Real estate, people expecting further declines. I talked about regional banks and how much they own. How much will you expect the fed to step in to smooth out any bombs as we go about this recovery regardless of any support from washington . Stephen from the fed perspective, they are feeling better about this crisis than the last one because we are starting with a Financial System in much better shape. They have provided generous support to the market and they stand ready as a backstop in a lot of different places, and thankfully a lot of those facilities have not needed to be used because the markets have recovered quickly. They are there. I do not think they will pay anyone and everyone that needs it, because you have to allow Creative Destruction to take place as the economy evolves, but i think they will be generous about providing a backstop and making sure any adjustments like that that need to take place do not become a structural issue, a systemic issue for the Financial System. Jonathan they have made this lisa they have made this clear. The fomc meeting they talked about how they could use kiwi asset purchases to support the asset purchases to support the economy. How much could suppressing 10 year yields by 10 basis points do to get people to work . Stephen i am sympathetic to that view. It is one i have made the last few years. There was a study that found central bank the world put a lot weight or effectiveness on qe purchases the noncentral bank private academic economists. I think maybe there is a blind spot. The fact is that is the only major button they can push beyond forward guidance. It iso not want to admit maybe not all that helpful. Yields are 10 year around 75 basis points. I do not know there is months there is much marginal benefit to taking them down from here. Us, if youre just joining Stephen Stanley joining us of amherst pierpont. You know politics is about jobs, may be jobs is about politics. What is the true Unemployment Rate in america 25 days to the election . Stephen we have an 8 Unemployment Rate, then another 2 decline in Labor Force Participation from before the pandemic, and some of those folks will not be able to come back until things straightened out, until schools are fully open. Some of these businesses are able to get back to normal. Then you have people only able to work parttime. Probably somewhere in the low double digits. Sharplyrtainly down from what an all in Unemployment Rate would have been at the peak of the lockdown when youre probably talking about something above 20 . Jonathan Stephen Stanley, great to catch up. Stephen stanley of amherst pierpont. Headlines. Talkingm londons mayor to a Radio Station in london. The new london lockdown restrictions would be inevitable. This coming from sadiq khan. Sadiq khan has been calling on the government to do more to tighten things up in the city. That is the headline coming from the mayor. We have seen what is happening in scotland as they tighten things up through central scotland, including glascow and edinburgh, shutting down the pups. A story we might see copied through england. The lesson in the United Kingdom is a lot of these decisions are being made more locally in scotland and england. What we saw play out in madrid with the Spanish Government and the standoff between local policymakers and the government is something we are trying to reconcile this morning. Tom what is the pathway from hugely increasing cases, the identification of the virus, to the idea you will be at home, too you are in a hospital in than the tragic death that follows . Are the hospital entries increasing as the cases come up . Stephen to make this jonathan to make this simple, some of the cases in some of the countries are as high as they were a couple months ago. Hospital capacity has not been breached in the same way. If you talk to these policymakers, they are alarmed about the acceleration and the trajectory we are on. Youre likely to see more restrictions before you see a fullscale lockdown like we saw in the spring. That is the story in europe. Different countries, different experiences. France and spain struggling. You see that in the Economic Data. The economic story is there for all to see. I do not have you saw the Industrial Production out of italy. Huge upside surprise for august. You can see it plain and simple through europe. If youre struggling with covid19, and Economic Data is not pretty. If you are doing ok, you are doing better relatively speaking , than the data is better. Tom in america, the increased cases in the midwest towards the dakotas and even towards wisconsin. I would not say it is in the battleground states, but is on the cusp of that where increasing cases are front and center. Jonathan you have to have some faith therapeutics have improved, we can deal with this a lot better. That is why do not think comparing the case cap now to the case cant be for is that instructive. Before to the case count is that instructive. Equity futures up 17 on the s p 500. In the bond market, treasury yields getting retention. Today unchanged. Eurodollar, 1. 18. Tom where were you a week ago. Look at that yield. Jonathan it was the story monday and tuesday. Tom i am sorry. I was not here. Jonathan someone was here in a bowtie looking like you. [laughter] lisa when i had my physical tom when i had my physical i kept the bowtie on. Lisa the image. Tom the floor manager just walked off the floor. [laughter] lisa i do not black jonathan i do not blame him. Coming up, colin wittmer. Looks like the on offagain tops for a largescale stimulus bill are back on again. Steven mnuchin told nancy pelosi that President Trump now wants a comprehensive relief package. Earlier this week the president had ended talks and said they would not resume until after the election. President trump he feels really good and hopes to hold a Campaign Rally in florida on saturday. The white house doctor has given him the goahead for Public Engagement starting this weekend. It was a week ago today the president was hospitalized with the coronavirus. President trump will go on fox news tonight and get a medical evaluation. The doctor will be a fox contributor. He has previously speculated, without evidence, that joe biden is using drugs before debate. The doctor has also said nancy pelosi should stop pontificating about the president s health. Michigans governor blamed President Trump for posturing hate groups after an attempt to kidnap her. Gretchen whitmer says the president has given comfort to those who spread fear and hatred. The white house as he condemns all forms of hate. The suspects reportedly stopped out Gretchen WhitmersVacation Home and plan to set off bombs while they kidnapped her. The Justice Department has sued Yell University saying it discriminates against white and asian applicants, saying the school favors lack and hispanic students in application favors black and hispanic students in application. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. Eaton vance has been around for over 90 years. Complementary businesses. There will be very little dislocation. Highgrowth, great businesses. Parametric has been growing very fast. This was a nobrainer. We paid full dollar for it. Jonathan the Morgan Stanley chairman and Ceo James Gorman relentlessly focused 32020 on more acquisitions speaking to smalley bostick. It is to sonali basak. It is the favorite time of tom keene of the morning for me. I leave. Later i will catch it with mohamed elerian. Tom coming out to talk about the new york jets. Jonathan we might get there at the end of the conversation. I do not know if you can watch the new york jets on british tv. I will ask. Tom there is a bar by the tower , the place with the door in the river. Jonathan why am i surprised . Tom it is not a pub, it is a bar. Jonathan name a city, name a town, he knows the bars. Tom Jonathan Ferro moving onto one of his properties. Yesterday was extraordinary, and buried in all of it was a small breakup of a 109yearold company. What is important about dealmaking, we look at the big deals. Most of the knowledge about deals, and i hate that word, comes from people that structured more realistic, more tangible deals with a lot of sweat. Colin wittmer does that at pwc where he is deals leader. The train wreck that is International Business machines, it hasarly the spin, been painful, it has been slow. Have you been surprised how long it took for ibm to get the message out . Colin i think less about that transaction and more what is happening in the market. We see a tremendous amount of activity around divestitures. It is time for companies after a long bull run to look at what they have purchased, what they have in their portfolio and see if there something that could be better in somebody elses hands, something that might be growing faster. Red hat is that excitement for ibm. If that is the case, is that a catalyst from the Financial Office saying the Financial Flexibility is so great it may not be there in 12 months . Colin lets step back and take a look at what is happening in the market. If you look at deal volume in q3 it is up 25 over q2. Maybe not that impressive because q2 was the most anemic quarter we have ever seen for deals since the dot com. 3 over the prior year. Deal value in the Third Quarter was almost 500 billion and there were 19 megadeal spirit what is driving people to the megadeals is what you are talking about. Caps on balance sheets, private equity drive power, and how well the stock market has been doing, a lot of the deals were done with a mix of cash and stock. One of the things to think about with the megadeals is it is a drive for scale. Eight of the top 10 deals were horizontal deals. They were to acquire competitors in new markets and nine out of the top 10 were done in the same industry. Semiconductors and health care and biotech. Lisa and we started with that Morgan Stanley talking about the apposition of eaton vance. Anymore megadeals in the Banking Sector in particular . Colin the Banking Sector will be hot. Health care will be hot. We are expecting more megadeals. I was surprised at the number of 19, which is pretty impressive, but we think with the availability of capital we think m a will lead us out of this recession and recover quicker than the overall economy. The system is awash with capital and people are searching for scale to transform their. Usiness after covid lisa there is a question of regulatory pressure, and particularly the tech sector there has been called by democrats to break up some of the big tech leaders. Those are probably going to get through but they could potentially stymie other acquisitions. Do expect some of those kinds of deals to dry up based on that pressure . Colin i do think regulatory pressure will always be there and it will put pressure on the sector. I think theyll be something tech will have to deal with in the near future. Tom i want to talk about defensive transactions. I am not sure if that what mr. Gorman did yesterday or others, but it is selling to or boards plural that we have to do this because if we do not do it the other guy will do it. Is that game theory in play . Colin i see that and i hear that garrett the race for scale i see that and i fear that. The race for scale. Tom we have to leave it there. ,olin wittmer, busy week wonderful to finish strong with you. Colin wittmer with pwc. We set up. Futures continue to advance, up 15, now 22. Dow futures up 59. Lisa the idea that is interesting to me is the data does not matter. Even though we see the virus spreading in europe and frankly spreading in many places in the united states, people are mapping out a time beyond the pandemic. Im struck by the fact, how do we do this when so much of peoples reticence to go out depends on the virus, not any official policy. How do we look past this . Tom it is friday evening on the pacific rim if i get my time zones right, i have to think through that. The remember the breaching seven solidly. We have a 6. 6997. 6. 70 remember the. It is amazing to see the pacific rim strength that china favorite Leland Miller was talking about. Lisa Leland Miller also talking about a certain point the chinese officials will not like this. Some of the economic powers they have gotten has come from their imports which have surged. Successfulrro and i at boxing Lisa Abramowicz out. No talk of ig or highyield. What did they do . Lisa they got huge inflows and did very well. One of the biggest weeks in a long time for flows into these funds. People looking at this as the alternative. A little bit of a cushion given the fact people are expecting inflation to pick up. This is all predicated on the idea of recovery and the idea that companies are going to be in much better shape in the next six months to 12 months. Tom back to benjamin lately or at tower hudson, he says money is going out of equities, maybe he sought going into highyield. This has been an extraordinary week. We will move the discussion forward. So much of the discussion will be on politics. Kevin cirilli in washington and david westin at 12 00 driving the conversation forward. Maybe we will hear from the two candidates through the day. On Bloomberg Markets this afternoon, scott minerd of guggenheim. This is bloomberg radio. This is bloomberg television. Good morning. From london and new york for our audience worldwide, good morning, good morning. The countdown to the open starts right now. Equity futures nicely positive. We are up 20 points. We advance. 6 . We begin with the big issue. Playing headline roulette, the white house signaling nest to largescale stimulus after Speaker Pelosi pushed back on individual measures. Speaker pelosi there is legislation we had in the c. A. R. E. S. Act we hoped could continue that expired at the end of september. We can do that separately, but we cannot do it unless there is a big bill. Jonathan the president telling foxbusiness the stimulus tops are starting to work out, saying we started talking again and we are talking about airlines