Two economic policymakers appeared to clash over whether to preserve emergency lending programs designed to shore up the economy. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. Im karina mitchell. This is bloomberg. Is 1 00 p. M. In new york. Welcome to bloomberg markets. Here are the top stories we are following. , u. S. Joblessly claims increasing for a second week last week. Incomes downed 0. 7 . The data open to interpretation. We will ask Julia Coronado what she thinks. The economic numbers may not be welcome news to retailers as they enter the important Holiday Shopping season. Later, we speak to mark cohen. And a soccer top of mind with baritone,g of diego we will talk to the ceo of fubotv, which has been booming subscriber growth. Lets take a check of the markets. Lowvolume today, the last session before markets are closed tomorrow and a shortened session friday. The s p 500 improving a little bit. The salesforce lack turned the market around the sales for slack turned the market around. The nasdaq is now up. We have the dollar index below 92, weakening dollar. The 10 year yield at 86 basis points. Crude flirting with 46 a barrel. Bidenentelect joe reportedly picking janet yellen for treasury. Coronado toin julia discuss all of this. First, your reaction to the state out. Jobless claims increasing. Personal income down. How did you interpret the data . Julia i think it shows both that the economy has been resilient, we see consumers continuing to spend and drawing into their savings, which is a sign of confidence, but the fact that we are seeing slower momentum in hiring, slower momentum in income, we are losing the cares act support, that is the key. We built a solid bridge of fiscal support with the cares act and we are seeing it run out in that is weighing on incomes and eventually it will weigh on the spending. Vonnie so far, spending improving more than we were expecting but we will see how long that lasts. How necessary is another round of stimulus and how likely is it now that looks like janet yellen will be treasury secretary . Julia it is necessary to a robust recovery. Doesnt mean we will go into a recession if we dont get any . Not necessarily, but we are going to get stuck in the mud because the pandemic is still oring for the next quarter two until a vaccine is available to the public and people can resume activities. Areout fiscal support, we going to see some backtracking and the economy. I think janet yellen nomination is great, she has a lot of clout on capitol hill. If anyone can get it done, she canberra we still have the Georgia Senate elections to get through she can. Haveve seen we still the Georgia Senate elections to get through. 12 Million People are going to be that is a significant drop. Weeks there may be a few where it is an absolute misery of an existence for some people but if things get turned around in january with a new cabinet and joe biden who might be more interested in doing something quickly, will he be able to, bill janet yellen and a team that is to be announced next force Congress Hand . Julia i think there is hope for compromise. I think there are enough moderate republicans that could convince some additional support. Coming,with the vaccine there is going to be a need to legislate something in the form of us getting that vaccine out there and the support needed for the supply chain and distribution and the administration of the vaccine, that is going to require federal work. While you are in those negotiations, can we get additional aid to small businesses, extended Unemployment Benefits . I think the trick is that so many people are losing their support through Unemployment Benefits, they are running out of ppp funding, and they are going to have to make their Holiday Plans based on that and we know how important this season is for retailers. Sluggishe a pretty Holiday Season, then start the year off on soft footing. All of that delays the recovery, adds to the pain that people are feeling. The fed has been focused on limiting what they call the permanent damage to the labor market, people out of the labor force and lose their connections to employers and networks and scales. The chances of that go up even and skills. The chances of that go up even if we get to the table in february or march. We have this pothole in the economy unless something gets done now and it does not look like anyone is really talking about that. Vonnie we know people are deleting their own savings. A leading indicator for what might happen in the future. What will happen today . Jayhere any onus on powells dont worry about anything given that everything is going to be changing next month . Already let ushe know they were evaluating options of what they can do with their Asset Purchase Program to add another dose of support, not merely of the magnitude they have been doing, but a marginal boost in support to address this fiscal cliff we are going over. I think he will get the details on that in a minute. I think we will get some specifics on options they can lead on if they decide that more support needs to be forthcoming. Be the what would question you would most like to ask the fed chair . Julia i am looking for those details on what they are going to do in terms of the Asset Purchase Program. I think that is the remaining piece of unfinished business. Powellthat, what chair and all the fed officials we been hearing from heaven saying is we are going to do what we can with all the tools available to us, but fiscal policy is the most effective policy intervention at this time. I think this burden is going to be more on congress and Janet Yellens treasury to get this moving and get fiscal policy in a good place. We know the fed is going to be doing what they can, it is just that their tools are pretty blunt and not exactly what we need right now. Place, do you see any whether it be in the market and any asset class or the Housing Market or parts of the markets that might concern you in terms of i dont want to say a bubble, but things might be overpriced . Julia i think we are seeing that rotation with the prospect of a vaccine middle of next year and beyond. There is hope for the Service Sector to recover and there is more of a balanced composition in spending, so while housing has benefited from pentup tear, thoseust on a may fall back to earth somewhat in the first half of 2021 and later on, we are likely to see some recovery. I dont think we are going to go from zero to one, we are going to see people get more comfortable moving around and going to entertainment, sporting events, travel, we will start to see those sectors recovered. It is not going to be from one day to the next, but over time, as people gain confidence in the effectiveness of this vaccine and the pandemic being behind us , then the other key issue is unlocking some of the restrictions on the labor force. A lot of people have been held back because they need to be with kids, women in particular. If we can get schools operating in a normal fashion that people have confidence in, then they can reenter the labor force and that creates a positive feedback loop. We are probably looking at q3 of next year, when we could really see that. Vonnie i want to ask about texas because we dont often get to talk to an economist based in texas. How is the economy . Do you anticipate an influx of people once this is is over once this is over . Julia we have had a mix of trends here. Oil prices until recently have been weighing on the energy noted, texass you is one of the biggest destinations for the covid relocations that we have seen. Austin has received a lot of new people, as has dallas and houston. From a demographic standpoint, texas is still on a growth has struggled it with the Energy Industry but the texas economy is way more diversified than it used to be. It has become a tech hub so we are seeing the tech sector driving some of that growth and relocation. I think texas is in a position better than a lot of other states and cities that have seen dramatic loss of population and had to grapple with that challenge on top of depleted revenues. Vonnie always a pleasure to speak with you. Coronado, macropolicy perspectives, president and founder. Salesforce report of the in talks to buy slack. This is bloomberg. This is bloomberg markets. Time for our stock of the hour. Salesforce, reports say the Software Giant has asked lord a possible buyout of slack. This would be the largest acquisition by salesforce and a big move into that Corporate Communications space. Onesforce shares are lower this news but look at shares of slack, soaring. Any deal would likely value slack at more than its current market cap of 20 billion. Since june 2019, back when slack since then,poed, his stock has soared. Stock has soared. Salesforce has a knack for closing deals. We crunched the numbers and here is a list of the largest acquisitions it has done. The 95 proposed acquisitions, 93 have been completed and two are pending. None have actually been terminated. There is no guarantee that this deal will go through, reportedly salesforce is looking at other possibilities as well. Of salesforce to that list could help salesforce and slack compete more aggressively with microsoft. Salesforce is one of the Fastest Growing in the tech space. 45 s estimated to grow by by 2023. Vonnie tech already outperforming the market. What do you see leading the charge . We have seen that rotation into the cyclicals lose a little bit of steam today and tech shares back on top. You can see homeoffice stocks where bouncing back today. Bet deal seems like a big on that work from home trade. Vonnie thank you. Still ahead, the state of streaming. The first live tv streaming platform, has been accelerating subscriber growth. We will speak to the ceo next. This is bloomberg. Vonnie this is bloomberg markets. Fubotv signed up more subscribers than expected in the Third Quarter, the company backed by 20 century fox went public earlier this year. With us now with more on the companys growth is david gandler. They for joining. Poignant today given the news of the ergo more adonis passing. Is a very sad day for football, a sad day for sports in general. We will look to add programming this week on the history of him. Vonnie that is something about football, it has become such auniter a uniter. Picking up steam here in america as well. You started with the rights to a lot of football and soccer leagues, but you have since expanded exponentially do all sorts of sports and news and entertainments. You charge more than 50. Is that sustainable . David of course. We have been building our base of customers for the last 2. 5 years. Fubo is a cable replace in service and it is relatively inexpensive when you think about the cost of cable or satellite. Range is a good Value Proposition for the amount of content we have. We have 50,000 sporting events, 30,000 bod assets, 110 channels in the basic package. We lead with the sports and provide people with entertainment and news as well. Vonnie what can you sustain those kinds of prices, even though you offer a lot for the money . There are a lot of other streaming platforms that mott that might not have as much but maybe a lot cheaper. David our pricing is actually quite good. If you look at the average amount of time people are watching fubotv, it is 120 hours a month. That is a massive amount of hours spent on one platform which suggests people like the user interface, an app that they can better understand across multiple devices. It is working for people. Adds in thef net Third Quarter demonstrates that price is not an issue. Vonnie that is great optimism. . Hat is going to happen next if the price for League Football goes up, how do you counter that . David the difference between sports and entertainment is sports is not fungible. About 60 million americans that really love their sports. It is one of the greatest things that we have in this country and people are willing to pay, they pay bigticket prices for events like the world cup, for football games, it is a form of entertainment that people cant live without. Should prices continue to go up, we will have to think about ways to mitigate that on the customer side, but we are a dual revenue stream. Not only do we make money off of subscription revenue, but we also sell advertising on the platform which allows us to soften the blow in terms of price hikes. Vonnie peacock has started showing a lot of soccer. Has it been a problem for you . David absolutely not. We partner with nbc, we carry nbc, and we are actually aggregating content from all of the major broadcasters, nbc, cbs, abc, and fox, whereas peacock only shows nbc programming. We are believers that customers like the aggregated experience, a single place where you can get all your favorite content. Have inputs from the likes of amc and 21st century fox in terms of funding but you thisdid a merger erred why particular company and what have the proceeds allowed you to do . Playinghe company is three trends. The first and second are decline in television viewing. The third is given the fact that we have some big events, we think there is a sustained opportunity to enhance the entertainment value of our platform. That is what we are focused on. The merger allowed us to add sufficient technology around sports and digital ip and we are still working through the strategy. The keys area are continued some growth, revenue growth, and generating advertisements. Vonnie where are you planning on making more moves . Are there other sports you would like to get into, countries . A hugethe u. S. Is market, as we know. Currently, we finished the quarter with 450,000 eight subscribers. Paid we are still focused heavily on the u. S. , we have an eye out for international and continue developing for when we are ready. Vonnie curious on your numbers for the sports, what are the top two or three sports people are watching these days . David nfl, number one. College football and soccer are very close after nfl. Thanksgiving weekend, it is a big nfl weekend, it is a Big College Football weekend, and it is the start of College Basketball so we are subscribed we are excited with the sports calendar over the Holiday Season and who does not love the macys day parade and specials from our broadcasters . Vonnie has been difficult doing this, making this growth during covid when people cant stay in the office . Pandemic course the has impacted our business, as it has many others, but we have been able to recover relatively quickly. We started sports early on in the Third Quarter. We are thankful of where we are, we are happy to know that sports will continue to play out through the rest of the year and we are hate we are happy that we can provide a service that customers enjoy. Vonnie thank you for joining. Theyd is david gandler, fubotv ceo. Coming up, the pandemic has not stop people spending. More on how bigbox retailers are planning to sustain Holiday Shopping this year. S p 500 down. Nasdaq is up 0. 4 . This is bloomberg. Are you frustrated with your weight and health . Its time for aerotrainer, a more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. Do the aerotrainer super crunch. The prestretch works your abs even harder, engaging the entire core. 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Joe biden has made it clear he wants to calm international relations. He introduced a team of Foreign Policy expert people instant Foreign Policy experts he plans to nominate. The Africa Centers for Disease Control and prevention are discussing covid19 vaccine trial partnerships with china and russia to ensure the nation does not get left behind in the race to acquire a vaccine. They arenot letting not limiting themselves to anyone partner. The u. S. And eu have prearranged to buy hundreds of millions of doses once viable. 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 karina mitchell. This is bloomberg. Vonnie live from taranto live from taranto, im amanda lane. Vonnie im vonnie quinn. We are joined by our bloomberg audiences. He are the top stories we are following. Black friday shopping will look different this year, we will chat with the ceo we will chat with marco in the red we will take a look at the impact of Climate Change on cranberry farming. America, we will discuss the decision to pay bonuses at last years levels. Lets check in on the markets. We do have some Economic Data that may be weighing on the picture more broadly. Check back in favor, but lackluster performance from the group that had been surging on reopening optimism and a sense that better times are ahead, including energy. Energy, which had been higher, is leading declines today. Industrials, financials also week. Back on top are the consumer discretionarys, tax. Amazon up 2 today. Paypal rocketing higher. Want to of course, i show you the russell 2000 because we have been talking about this pivot moment and this would be a longterm trend reverse of the nasdaq outperforming the smallcap group and we are seeing there is the index on the one year. We are seeing a giveback today for small caps but it is not show up on this chart because relative to the surge we have seen recently, the question is whether as we get more data and optimism about reopening, does this group pick up again . , retaile we will watch sales over this shopping season, it will be a mixed picture geographically based on covid and restrictions, but how will it shape up . We may not see the usual crowds and long lines usually seen on black friday but the digital piece of it is going to be a big part of the equation and some are Getting Started early. Mark cohen, the former sears canada ceo, director of retail studies at the Columbia Graduate School of business, author the thankr being with us you for being without. What do you think this season will be based on everything we know at this moment . Mark this season will be one for the books. Not anything like anyone has seen before. Surgingemic is throughout north america. Worrisome inlarly communities that were not particularly focused on social distancing or the use of masks. Attempt to drive an enormous crowd on a friday morning following thanksgiving is a fools effort, though im sure there will be some people who show up. Retailers have been advertising black friday specials for the better part of the last month, attempting to draw customers to them by ecommerce and for those who have been [indiscernible] for those who are well equipped to Service Customers through the internet, they have been doing ok if not well. Study, how do you see this pandemic playing out . Retailers have had a lot to deal with, amazon has been gobbling up market share all over the place. There is an effort to try to combat that and now this pandemic on top, what would your top three pieces of advice before retailers . Mark first, retailers have to have assortments of product that customers want. The accessory business has been off trend for several years. Particularly so in light of the Lifestyle Changes that most have encountered through covid. People are not going to offices, not going to parties, not going to social events or social gatherings where they would get dressed up. They are not out and about, particularly. They have been increasingly focused on inhome, staying at home, working at home. Change. Big [indiscernible] course, todays customer prepandemic expects transparency between brickandmortar and internet availability and that is ever more important today. The second issue has is you have to have an ecommerce site that works with a myriad of choices that customers make by way of send it to me, to my home, let me pick it up at the curb or pick it up at the store. Is ird issue [indiscernible] work, who areto happy to Service Customers, and to feel safe doing so. There are trends that are simply being accelerated or exacerbated by the pandemic and one of them is the fact that many retailers, especially the large mall oriented retailers, see a value of their real estate something the cash flow operation, the sales business. Yourld rule of thumb is if real estate is more valuable that your retail business, it is time to close your doors. What will change in the picture for some of those retailers try to pivot to ecommerce but is sitting on huge piles of real estate . Mark the problem with real estate evaluation or real estate valuations is there have to be a buyer on the other side of the proposition. It is an enormous amount of excess space, an enormous amount of vacant space, particularly in throughout the United States and canada, but there are not [indiscernible] which is a struggle for the Property Owners who cannot relet the space, have difficulty refinancing the space. This is a crisis that started well before the pandemic. The pandemic has expanded the crisis. This crisis will likely extend for the next several years. Vonnie i was going to ask how bad this gets. , realch do we see malls estate discounted, and are we left with literally three stores . Mark [indiscernible] more or less fully tenanted, they do not have a lot of vacancies. When a sears u. S. Or canada disappears, they are able to find an alternative use for the space. Those will prosper because customers will want to shop physically well into the future. I dont think we are going to see the end of brickandmortar retail. Malls, the ones with only two or three anchor to have already lost 1, 2, or sometimes all three of those anchors along with a host of ,enants, if they still are open they are at tremendous risk. They have all the appearance of notmpty restaurant, they do appeal to customers because they do not have much choice. They physically are not appealing. Think of those parking fields placedose anchors were at the end of, they were the portals into the mall, and now those stores are closed. Vonnie thank you for joining us. Mark cohen, former sears canada chairman and ceo. Coming up, it is a thanksgiving dinner, but Climate Change is making it harder for the cranberry to find a place at your table. More next. This is bloomberg. We need support for the economy both for monetary and fiscal policy and Monetary Policy has already done a huge amount. I believe Central Banks need to be independent and need to do everything they can. I do see the sentiment and the push is now going very much in the direction of deregulation , reducing buffers, producing authorities, and i am worried going. Here this is appropriately designed to tax reform could have a favorable effect on productivity. It obviously depends on the details of what you do. We need Public Policyoriented Public Policy oriented towards making a difference on Climate Change. An efficient way to price carbon wherebe to go to the well. Nergy creates Carbon Emissions the tariffs may make goods more competitive. The depreciation of the currency will offset that. Thegarded that as not proper focus, but let me be clear, i think the United States has real issues in terms of its trade relations with china. Expected treasury secretary janet yellen there, speaking about various issues including climate, which leads us to our green segment. Cranberries today. A staple of giving dinner. Productively cold winters, but with Climate Change giving byes to erratic weather patterns, cranberries and the farmers to nurture them are finding it harder to survive. Of the Cranberry Growers association. You do support 7000 jobs in massachusetts alone, responsible for percent of the crop. Tell us how difficult or easy it has been this year things to the pandemic and what type of crop we have. Brian from the pandemic perspective, the impact was fairly minor on the growers, which is the good news. We had a severe drought in massachusetts, which is where most of the cranberries grow, and that caused some major impacts to the crop in the crop is down from the august estimate. As i understand it, because of a delay in the onset of cooler weather, which helps the very turn red, we might see a later picking season. Is the upshot that cranberries are more expensive this thanksgiving . Brian the price is not impacted by what is going on at the farm level. We are seeing other impacts from Climate Change. The harvesting season tends to be delayed because our files are warmer, so midtolate falls are warmer. Our septembers have been warm and the cranberries need to cool nights to bring out that dark red color. There have been warmer winters, so they come out of their winter dormancy too early. Winter is not done yet, so we can have cold weather in march and that could affect the plants as they are starting to come out early. The seasons have been impacted by Climate Change. Say cranberries are priced no matter what happens. Why arent we seeing increased prices . Brian i dont know, im not an economist. From what we have seen, the supply of the cranberries can impact the price that the grover receives from the fruit so when the supplies are tighter, they tend to get higher returns. That does not seem to carry over to the consumer, which is good for the consumer. Those costs are probably picked up the manufacturer. Always suggesting the consumer is paying more than they should. The place will be stable, which is good news for people who are used to paying a certain amount. Is the industry under threat because of Climate Change . Will it have to change practices . Are there concerns about the way this farming is done . On, here inme goes massachusetts, the growers will need to make some adaptations, which they are starting to do, looking longerterm, more challenges probably as the weather warms, probably have more rot coming into the cranberries, there will be different techniques. They are going to be some changes, but it is not dire. The growers are very innovative and able do what they need to do to move things forward but it is going to take time, resources, and growing cranberries for the farmers is not getting cheaper. Costly anding more challenging to deliver the same amount of cranberries. Vonnie a lot of your farmers are parttime, they need to be, it is a necessity for them. Also, it is difficult to raise capital. What are the conditions like for that . Is there the suggestion that some private Equity Company or something bill come in and buy out farms . Possible and a lot of the farmers in massachusetts are smaller so there are some that are parttime farmers, but everyone, they struggle with capital. These infrastructure changes that they need to make our expensive and if the prices they are receiving through the fruit ability toeir between the capital is challenging. We have been living with that for a few years. We are starting to see an uptick in the prices growers are receiving so we hope that trend continues, which will allow them to have more opportunities to get some loans to help them get the infrastructure they need. It is possible that other companies could come in who look to invest in cranberries. In massachusetts, all the growers are familyowned, small farms. Pretty ones. Ery great to have you with us, appreciate your time. Thanks. Friday mberg green catch the bird green on friday. Bank of america traders are up in arms about what they see in their bonus pool. This is bloomberg. Amanda this is bloomberg. Rkets some bank of america traders are not happy with they see with what they see in the bonus pools. Lets start with b of a and what is traders can expect. Expect,the traders can what we are hearing is that managers are trying to set expectations that the bonus pool for this year is going to be pretty much flat, even though the traders and salespeople have had a 20 jump in revenue. There is a little bit of dissension in the ranks as people want to be compensated for their contributions to profits they have made and i think they are going to be disappointed. Vonnie is this an opening gambit at is bank of america expecting a clash expecting backlash . That is a possibility. We make sure in the story to say that this is a preliminary discussion. The compensation has to go through a lot of reviews and negotiations. Managingn early stage of expectations but it is significant to us that the expectations have been set pretty low. Bank of america is a consumer bank, not just a wall street trading house. Competinga lot of things that have to do with the bank looking at Broader Society and the fact that the economic environment is poor, at the same time as there traders are doing well. For a you reward people few quarters of good performance when the rest of the economy and maybe the rest of the bank is suffering . Do we assume that we will see more of this echo is this more of this . This isyes, and i think a reality check for the street. The banks look at each others compensation and are comparing who gets paid what and this is an earlystage discussion among bank of america, but of course, its competitors will look to see what signals they can expect to send their staff. Is this a way to gain a Competitive Edge by paying people more or does this cover for other institutions to also be a little less forthcoming with bonuses . Vonnie just as it is a race to the top, when one bank decides it is going to make it a race to the bottom, the others are free to follow suit. There,talent that is might they jump ship . Lananh across all banks, people want to falter talent and make sure that they keep their key performers so it is going to be a balance between keeping the whileeople happy subsidizing maybe other areas that did not perform as well. Definitely, there is going to be weighing talent versus shunting parts of the bank that people are not as that dont produce as much. A strange year because we have the pandemic in the context of a real economic pain and misery and the economy while at the same time, this bonanza in trading. The bank is having to walk a fine balance in all of the banks will have to do that because their top revenue producers will want a lot more and it is hard to justify that at this stage. It is a fantastic story. Thank you for joining. You can follow up on bloomberg. Com or under bloomberg. Happy thanksgiving to all in the United States. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Wannits timeight and for aerotrainer. A more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. It allows for over 20 exercises. Do the aerotrainer super crunch, push ups, aero squat. It inflates in 30 seconds. Aerotrainer is tested to support over 500 pounds. Lose weight, look great, and be healthy. Go to aerotrainer. Com. Thats aero trainer. Com. On capitol hill, lawmakers have reached an agreement on spending levels for the bill needed to avert government shutdown. The deal between the senate and house chairs increases the chance that the bill will pass before the deadline. President trump plans to pardon reichel flynn according to a flynn. Michael putin says vaccines are safe and effective. But a criminal inspects and says dont expect him to get a job anytime soon as the treatment is still uncertified. Testingrs say initial so it is 91 effective. One of the best soccer players ever has died. Heartfered a hard tack after undergoing brain surgery earlier this month according to an argentinian newspaper