Performance in the s p 500 right now. Saying ite and fitch weighed heavily on their quarter, down 13 . A little selling in the treasury market today. We will be talking about all that in just a moment. In europe, one of the bigger stories today, italy. Prime minister conte has accepted the mandate from the president to come up with a government, sending the ftse mib up to the best performance in europe. It is up in europe as well, potentially on china comments. The italy 10 year yield currently firmly below 1 right now,. 96 . The except to the exception nokia is the vonovia. Coming up, it is the end of the gso era in credit. We will speak with Bennett Goodman about his departure from blackstone. China indicating it will not immediately retaliate against the latest round of u. S. Tariffs announced by President Trump last week. Beijing instead, beijing is emphasizing ways to deescalate the trade war. For more, we are joined by john ryding, rdq economist and founder. John, looks like theres a bit of a better tone in markets, but is this china really backing down, or is it just playing other card . John theres no way of knowing how this trade is going to go, when it is going to escalate and deescalate. What we do know is in the end, both sides lose if we continue to escalate. If you look at the markets, the equity market seems to want, every time trade deescalate, to go higher. The bond market looks priced for near recession. Its not just trade we are not entirely sure whats happened to. Markets seem somewhat bipolar in terms of how they look at the economic outlook. Vonnie thats the thing thats very confounding. We have Economic Data today that really wasnt bad. Gdp was revised down a tick, but still at 1. 2 . The market is still pricing in more cuts by the end of the year. Why do the markets have so little confidence in this economy . John i think it is because the fed has really signaled it is going to take appropriate action , which means cutting to try and offset trade tensions that Monetary Policy has no ability to offset. Markets have taken this view that the fed is going to give some more. The fed very likely will look to cut again until the all clear is sounded on trade. As we know, that is unlikely to happen very soon. In terms of the gdp report, it was a little more good news in there. If you back out of the private sector and look at what domestic businesses were doing, then the domestic nonmanufacturing sector showed strong growth, 3. 9 yearoveryear. And been tories are taking off inventories are taking off in the gdp number. Trade is an issue. But if you dig down, the private sector seems to be doing quite well given the trade tensions and the problems with tariffs. Vonnie exactly. Theres mixed data out there because if you look at companies reporting, you get another picture. For example, best buy talking about its inventory going from 60 to 40 for those products from china. Abercrombie fitch reporting a terrible quarter. Youve got some of the big Machinery Companies also getting guidance its very concerning. So what you go on . Do you go on ceo comments . Do you go on the hard data that might have a bit of a lag . John i think you have to think picture. Broader the. Private sector is doing well, but what is not doing well in the private sector is Capital Spending. Capital spending growth has stalled out. Being lede sector is by the consumer, and thats a very unbalanced picture in the economy. Theres growth in Consumer Spending over 2 of overall growth in the economy. Inventory is swinging things around because youre trying to get inventory in ahead of tariffs, having supply chain disruptions, so it is hard to get a read on the underlying growth picture. Is what we do seem to see that uncertainty about trade is hurting Capital Spending. In the long run, that is unhealthy. Datakeep the eye on profit , on the Capital Spending data, the things that really tell us where this economy is going to be going forward. Vonnie if the fed does cut by more than 25 basis points or cuts more than twice more this year, would that be a mistake, john . John i think it would be. I feel that we are on track to get them. But to cut more than 25 basis points, look, the signal about cutting is a midcourse correction, 50 basis points is an insurance policy. 50 basis points is trying to head off something more serious in the economy. I think that could undermine risk assets. Bond market,he which seems to be pricing in near recession conditions. If the fed were to resolve the another, that or will have a big impact on risk assets. Vonnie it is one of those things that is floated from time to time, but the idea of an ultra long bond. Would let ever even come into existence . John i dont know if there would be demand. What we hear from some of our clients is that actually a shorter dated long bond, there would be a lot of demand for twentyyear bonds. I think the idea of going out for 100 years, you would probably want to go for 50 or something. 100 yearsyears is a long time. An ultra long bond issued right right an ultra long bond now would have to have been issued just after the first world war. Im not sure there is that demand for a 100 year asset, especially if it comes from Pension Funds and so on. That person hasnt yet been born and wont be born for a few decades. I think looking at, say, a 20 year x a lot more sense than looking at a 50 or 100 year. Vonnie looking at the curve, is there any part of the curve that is correctly priced to reflect what is going on in the economy . Ratesi would say interest reflect the fundamentals of the economy far too low. But to reflect what the fed is the market may be pricing into much from the fed. I think we are discounting the risks of not having a little bit of an inflation pick up. We get more tomorrow with monthly inflation data. Weve paid a lot of attention to things like the trimmed mean estimates. Rather than just throwing out food and energy, you throw out the big movers and look at whats happening to the Central Distribution of prices. That hasnt shown the same kind of decline weve seen in core inflation. , think that, looking at that we shouldnt discount that inflation is running may at 2 , maybe picking up a little bit above that. Obviously next week brings a lot more information with the payroll data, a new look at wages. But some measures of Labor Compensation are creeping up towards 4 . That is either going to be a problem for Profit Margins and growth, or it is going to be a problem on the inflation side. And then theres the impact of tariffs that have yet to be fully felt by the consumer. Vonnie john, we have a lot more to talk about. I also want to ask you about the ecb and brexit. John ryding, rdq economics chief economist, stays with us. Lets check in on the first word news with kailey leinz. Kailey dorian is aiming to become the first major hurricane to slam into the florida coast in 15 years with winds of 115 Miles Per Hour and drenching rain. It is already carrying winds of about 85 Miles Per Hour after racing past puerto rico and the u. S. Virgin islands wednesday. 1020 20 democratic president ial hopefuls have qualified for the next debates, but 10 2020 democratic president ial have call if i for the next debates, but for others, it is the end of the line. Kit digital brand is among those who will not take the stage next month Kiersten Gillibrand is among those who will not take the stage next month. The Trump Administration will tighten its policy for children adopted overseas by u. S. Military personnel. Adopted kids will no longer be guaranteed citizenship. Previously, these families were considered to be living in the u. S. Even while stationed overseas. Hong kong police say they have protests fromy the previous organizers of marches, citing public safety. It is a move likely to anger public demonstrators ahead of a planned 13 straight weekend of protests. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Vonnie thank you. Coming up a little later, le tote is buying. The president and cofounder Brett Northart joins us later. More with john ryding next. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Lets get a check on Global Markets with emma chandra in london. Emma we are looking at a risk on sentiment on both sides of the atlantic. All the major indexes in america and europe rising by more than 1 at the highs. Looking at a gain for the s p 500 around 1 . The nasdaq 100, the biggest stocks within the nasdaq rising a good 1. 3 today, really showing how its big tech leading the rally today. This as china says it wouldnt immediately retaliate against new boosted tariffs from the u. S. Of course, investors liking that news. Tech stct on mega cap ocks really showed in the new york faang index. That is moving a lot today, gaining more than 2 . Its really been on the sidelines as of late, but we seen the index advance up 3. 5 this week. That would be the biggest weekly advance for the index since around mid june. Outside of tech, a big day for retail. Best buy slumping after it came out with secondquarter results, down some 9 . Doing better on comp sales, though they still missed. They also lowered their fullyear sales forecast. The concern seems to be around their uncertainty about Consumer Behavior in the second half of the year. Better,tores doing dollar tree and Dollar General both rising. Dollar general up some 8. 6 percent, hitting a new high today, as they boosted their fullyear guidance despite the threat of tariffs. Lets take a quick look at all wheel, arising again. The rally continuing. Oil, risingok at again. The rally continuing. Vonnie thank you. We are back with john ryding of rdq economics. Lets move to mainland europe. You have italys 10 year yield at 95 basis points right now, 69, at nine, germany at 70 right now, and france at 41. Then you have Christine Lagarde telling the European Parliament that the ecb hasnt hit the lower bound on Interest Rates. Where is the lower bound . John who knows . We used to have the lower bound at zero, and that has obviously been broken, but you cant cut Interest Rates to make them to negative. Then people start to take enormous efforts in order not to pay for the privilege of the bank storing the money. When the banks dont past that negative rates along, then they absorb it, and you are taxing the sector you need to drive the economy, and negative Interest Rates become counterproductive. I think, regardless of whatever Christine Lagarde says, europe is within 10, 20, 30 basis points of an effective lower bound of what the central bank can do, which means probably more asset purchases rather than a move to lower rates further. Vonnie shes obviously signaling to the European Parliament that shes going to continue the type of policies mario draghi has been effectuating. She says the precise mix deployed will have to depend on the nature of shocks and outlook on inflation. Are there shocks affecting the outlook for inflation on the horizon . John germany just printed a lowerthanexpected inflation rate. German inflation is at 1 . Germany may, quite likely is, in recession. Is the problem with europe that too much emphasis is being put on Monetary Policy and not on fiscal policy. Germany now has the fiscal space without breaking ecb rules to undertake significant fiscal stimulus. Thats what tax cuts and stimulus in journey would be much more helpful for the european economy then making Interest Rates in germany would be much more helpful for the european economy than making Interest Rates lower. Seen t the data you the data. You seen german gdp come down, running a surplus is the economy goes into potential recession. To me, theres no rational reason not to undertake some kind of fiscal action in germany. Vonnie i have to ask you about britain. Obviously Boris Johnson looks to be suspending parliament now. What happens next, and where does the pound go . What happens to the british economy . John the unfortunate probability of a no deal brexit continues to rise. If that happens, that is going to be short run negative for sterling. The reason is because the legal default is that the u. K. Leaves the eu at 11 00 p. M. London time on halloween, and whatever the Legal Authority, and i think the Legal Authority is there, for Boris Johnson to prorogue gate parliament, it is clear, the intent, to me. It is clear the intent is to prevent action to prevent a no deal brexit. The only thing parliament has been able to agree on in this hold three year or so mess is they do not want to leave without a deal. That is the only thing that we are on course for unless some action is taken. So it is going to be interesting political theater and very constrained political theater. It is no way for a modern country, a large country in the g7, to be running its Economic Future or political future. Vonnie john ryding, rdq economics chief economist and founder, thank you for joining. This is bloomberg. Vonnie york, im vonnie quinn. This is bloomberg markets. Its star wars attraction galaxys edge at disney world in orlando. Plus, a hurricane is threatening the state. Reporter this is the second star wars themed attraction they have opened. They opened one in anaheim in may, and there were some restrictions on the people who could go to these attractions. You could only sign up online, or if you stayed in one of the disney hotels. To make up for that in florida, they are going to be waving those restrictions and hoping that attendance is better. Themeparkese are two expansions costing 1 billion each, and one of the rides isnt even open yet. How much can disney afford to wait for this to gain traction . Do reviews start keeping people away . Reporter one of the attractions is open, one of the rides is not, so i think the demand for star wars and the fans of star wars are sort of insatiable. Disney has made a huge bet on star wars, so i think it remains to be seen just how any people go to this one in orlando. Vonnie attendance is down in the last Earnings Report at team parks. That has been the one place disney could always count on for cash flow. How important is it that this new themepark works . Reporter the themepark business has always been very reliable for disney. On the other hand, theyve got this very big streaming service they are launching right now, so i think they would like the themepark business to remain steady as they make this big transition in their Media Business into the streaming future. Vonnie it always feels like disney has so much confidence in its future that it would open parks like era disney before they are even ready like euro disney, for example, before they are even ready. This streaming service doesnt begin until november, but they are offering a humongous deal to people who sign up and preorder, right . Reporter thats right. They just had their big d23 expo, and people who were part of that fan club, if they signed up for a three year commitment, they could get it for about four dollars a month as opposed to 6. 99. People are really paying attention to the price points of all of these streaming services. Youve got netflix and amazon, and now apple, disney , hbo max. The consumer is probably going to start wondering how many i can actually afford. As these details come out about streaming services, how much they are charging, that is a big thing. For disney to offer a discount, there were reports that the website where you could sign up actually crashed, so the demand for that disney seems to be pretty high even though it hasnt even started yet. Vonnie three years of a very competitive price. Thank you. That is bloomberg gerry smith. It is time now for the latest business stories in the news right now. Best buy delivering slower lowerthanexpected Quarterly Sales and reducing its outlook for the year. It was a rough start for the electronic retailers new ceo, who took the reins in june. Missedles rose 1. 9 , but projections. They also lowered their fullyear sales forecast. The u. S. Economy grew a little more slowly in the Second Quarter than initially reported. Stronger Consumer Spending offset by weaker readings across other categories. Trade actions are weighing a little more, perhaps. Inflation is down from 2. 1 . Blackstone group losing the last of its cofounders. Gso Capital Partners bennett gso, is the g in leaving. He is coming up next, right here on bloomberg television. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Big news in credit today, with a high profile departure from blackstone. Erik schatzker is here with one of wall streets most six x of most successful executives. Erik that would be Bennett Goodman, leaving one of the most successful firms almost three. Why . Bennett a host of reasons. First and foremost, i think the firm is in good shape. Our president has been running the firm day today for the last two years. I think the firm is hitting on all cylinders, raising lots of capital, deploying our funds and smart investments. I think everybody is kind of ready. On a personal basis, ive accomplished what i set out to do, and after 15 years, i think it is time for some new challenges. Erik if theres one mantra or one principal you want to survive after you leave, what would it be . Erik it would be making our lps a priority. They are our ultimate customers. They are the ones that provide us with the capital. I think weve been good stewards of that capital. Very proud of the way we have conducted ourselves in a transparent manner, quite proud of the returns weve been able to generate for them, and i also have great pride in the culture that weve created at gso so that all of that survives me and will continue on. Billiono has some 25 in dry powder right now. It is a tricky time to be deploying capital in credit markets. How would you describe the investing climate as we speak . Bennett i agree, its tricky. Valuations are very high. Lots of competition for deals, so its a time when you want to be cautious, but nonetheless, theres still things to do. Not the ideal time to be reaching for risk, but we see a lot of lower risk things on a relative scale that we are active in, particularly in our direct lending activities, and plenty to keep us busy. Caution,when you say give people a sense of how they should be thinking. If they can take one thing away from all of Bennett Goodmans experience and track record at gso, what youve seen over time, how cautious should they be relative to other points in the continuum of the history of credit markets . Bennett i guess words of caution, dont get caught up in fads. Just because the marketplace is complacent, it is probably a good time for you to be conservative. Just because theres lots of liquidity chasing transactions, good to hit the pause button, reevaluate your investment thesis, ask around, and try to get different perspectives. Lots of different views tend to help come to an investment conclusion. In an environment like this, i think it is particularly important to have a lot of broad perspectives and make sure that your checking and double checking that your checking and double checking what you think goes right and what could possibly go wrong. Erik does that describe what you end white are doing at gso what you and dwight are doing at gso before you step down, not participating in some of the deals we see getting shopped around . Bennett i think it is a balance. In the last 12 months, weve put 10 billion to work, and thats a lot, in what we think are some pretty smart transactions. Things like target resources. We did a large commitment for acura sure for accusure. These are not things that wall street is bringing to us. We are not deploying capital in public markets. We are originating our own deal flow, where we have a point of view and a perspective, and we are deploying capital in those industries behind management teams that we have a lot of confidence in. Erik bennett, weve had limbss of the next credit meltdown. We had weve had glimpses of the next credit meltdown. Big one,selloff, the finally comes, how do you think it plays out . Erik one, i think we will have a selloff. Cycles are not extinct, although we havent seen one in quite a while. I think the next cycle will be driven more about valuation and the recalibration of how risk is priced. I dont see another 2008 recession. I think whatever kind of economic downturn we ultimately have will be relatively shortlived. Have will be relatively shortlived. I also believe that theres a lot of capital on the sidelines. We are not the only ones that have a lot of dry powder. I think that repricing of risk will serve as opportunity for people to want to put more capital to work. Erik so risk may be repriced because of all the capital available at a higher level then it might have otherwise been when there wasnt so much dry powder . Bennett no, when things get repriced this time around it will not be because of macroeconomic factors. It will be because of some other event. Whether it is a trade war with china, some kind of conflict in the middle east. The fundamental Economy Today as we see it is actually doing ok. Erik what about liquidity . We seen at least a couple of loans, clover technologies, deluxe entertainment, which suggest the behavior of those repricings suggest maybe there isnt a lot of liquidity out there as some believe. Bennett theres no hiding the fact that we are at the end of some kind of cycle. Those kind of deals in todays types,ment, the ccc, b are having difficulties getting done. I dont think that is surprise. Thatnk people realize highly leveraged transactions with lots of ebitda and a lack of covenants, that has been long gone for quite a while. What precipitates people being a little more discerning in terms of what they put in their portfolios today. Erik we seen five leveraged loan deals pulled this month. Arehat because underwriters trying to foist crappy loans on the market, or because investors are losing their appetite . Bennett more the latter, less the former. Investors are reading all of the press kit livings the press clippings. You would have to be in hibernation not to notice there are a lot of skeptics out there. I think it is more a reflection that these are fringe deals. They probably dont deserve to get done in the public markets. I just think it is normal course type activity. Erik what about distress . There are more bonds trading at distressed levels today then there were in the Fourth Quarter of 2018, and nowhere near as much as in the First Quarter of 2016. To much longer will be open untroubled borrowers . Bennett i think it depends on the borrower. If you are a highly leveled company in an industry going through secular change, that is going to be an issue. Very difficult as a creditor to sort out what is happening in the retailing industry. Very difficult to be able to some of the changes going on in media related businesses, publishing related assets. If there is a company tied to u. K. Activity in the face of a hard brexit, these are risks as a creditor you dont really get paid for. So you are probably just going to pull back and let others try to sort out what the appropriate pricing not to be for transactions like that. Os . what about cl s offer a hedge against rising Interest Rates, does demand keep falling further . Bennett i dont think demand will collapse, although the arbitrage might get taken out of the marketplace. Is a pool of clo leveraged loans. If the cost of the leverage doesnt go down at a time when the price of the assets go up, you cant turn a low doubledigit return on equity, and that is the arbitrage. In todays world, there are tranche,ers of the aaa and while asset prices have moved up, the pricing of those aaa liabilities have not fallen. So i think you will see the ebb and flow of the clo market go up and down. I dont think it is anything permanent. I dont think the efficacy of the clo structure is going to be a cause of some domino impact of cascading defaults and a cause of concern, but i think it is more a question of we wont be able to find new equity that, in todays world, get priced at an 8 return, and historically those clos have yielded 12 to 13 returns. Erik what is the next chapter for Bennett Goodman . Bennett im not sure. It is going to take me some time to sort all that out. But i will say this, i am genuinely excited about my new role at blackstone come january 2020, where i will be a Senior Advisor to the firm. I am going to maintain my chairman role on our bdc and direct lending activities. That is a business near and dear to my heart. I will be able to continue to work on investment committee, continue to source deals for them, and be involved. I am going to start a family office, so i am getting close to signing a lease and hiring a few people. Longer term, if there is another chapter, i would have to identify a sector or an Investment Strategy where i think theres great value, regardless great value. Regardless, whatever i do in my next life will not be at the scale of what i did at blackstone. Erik bennett, thank you for spending time with us here at bloomberg. It must be amazing to look back at your career and thing of what youve accomplished. Bennett thank you, erik. Erik that is Bennett Goodman, as of now still the senior managing director and cofounder of gso Capital Partners at blackstone. Vonnie thank you for that interview. Breaking news now, the ecb says to resume qe. D the market is moving on those comments. We are back to flat. The german 10 year yield moving just a little bit, still at 69 basis points negative. Once again, the dutch central saysgovernor at the ecb the euro area economy is not we purchases. Me bond now to deals news in the retail industry. Retails bay selling operations to closing rental Subscription Company le tote. 100 million is the price tag. Joining us for an exclusive interview is le totes president and cofounder Brett Northart, along with bloombergs emma chandra. Im actually going to jump in and ask you about the origin of this 100 million deal. Gotten to know the lord taylor and hsbc, and what we felt like we could bring to the table to really complement what lord taylor has done well. Theyve built an extremely Loyal Customer base. They are the longest standing clothing retailer in the United States at 193 years old. Theyve been slower to end of eight on the technology front, and that is something we felt like we have done a particularly good job of and have invested a lot of time, money, and resources in building le tote. Vonnie at one point, we might you been asking when are going to sell to hudsons bay, and then we got a report suggesting that barneys might sell itself too far fetch. Why is it that online retailers like yourselves and rental Subscription Companies are able to find the financing to do deals like this . Brett retail today is sort of the have and havenots. Opportunity tof raise capital. I think the cost of capital is significantly lower for the startups. And abate of Companies Startups and Innovative Companies then it is for older companies that have fallen on hard times. Emma emma chandra here in london. Thanks so much for joining us. We just wrapping up retail earnings season, and its been a particularly tough one for department stores. Why get into brickandmortar, and particularly this segment . Brett it is a really interesting trend weve seen over the past few years. Our friends at bonobos really kicked off the trend of going into the retail brickandmortar space. People want to touch and feel, be able to try things on, so you see more of these digitally native startups that begin online and move into the retail world. So we dont believe people are singlechannel shoppers today. People are shopping across ecommerce, online, and offline, as well as doing things like rental, which are new to the market but give people unique ways to consume that didnt exist before. We see a large opportunity to interact with this extremely Loyal Customer base that lord taylor has built up, but give them interesting new ways to consume. We really want to be the onestop stop shop for getting dressed for all of our customers. Emma but you are not getting into small stores. Youre getting into some Big Department stores here, with some serious square footage. How do you plan to utilize all of that space . Brett were definitely going to take the stores as they exist today, largeformat boxes in the northeast, but our vision is to turn lord taylor into a nationally recognized, innovative really taylor innovative retailer rather than a regional player as it exists today. The boxes give us an interesting experiment to try new formats, but in the future i think you will see smaller format boxes. We are definitely excited about taking this model across the country. We are based in san francisco, and we would love to see a lord taylor store in our backyard. We would love to expand to the midwest and the south as well. I dont think the 150 thousand squarefoot box is going to be the Retail Experience of the future. That is what we are working with today. But i think as we grow and evolve this business, it will look significantly different than it does today. There ceo is getting a board stick. What will they asked ash a board stake. A board stake. What do they expect from you . Is to its our Mission Start expanding at get back into growth mode, we would love to have a partner like richard on our board who can help us think about expansion in a thoughtful and judicious way. I think what they are looking for from us, obviously they want to see their equity stake grow, but also to see what innovative things we are doing that they can bring back to the hbc model. It allows them to focus more on and hbc. Maybe we can teach them about the technology side, and we are really excited to learn from them about the physical retailing side. Vonnie youre in the process of financing. Is it going to be a problem getting it . Brett this is a deal weve been working on for a long time, so weve got great relationships with banks out west, as well as in new york. Conversations are ongoing, but we are confident we can get this secured in the next 30 days or so. Emma final question for me in london. Your business is subscription retail, a very crowded space. How is this deal going to help you stand out in the subscription retail side of things . Brett we are the first digitally native company to go and acquire a big offline retailer, so we are excited to be the first to try Something Like this. I think this also gives us an immediate plug into a much larger Customer Base. Lord taylor has built a lot of trust with their customers over the last 200 years, so with a start up, youre obviously id be you are obviously always fighting anonymity, so this gives us a Customer Base that has a lot of trust and nostalgia for this brand. Our Mission Going forward is to revitalize what people think of lord taylor and expand the Addressable Market for that brand. Totee Brett Northart, le president and cofounder, thank you for joining us. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Joining us from the cme is ira epstein of lynn associates. A lot has gone on the last few days, not least the backandforth between the u. S. And china. That is getting reflected in some commodities. What are you doing to take profits when you can down there . Ira heres the issue right now. We are in the labor day period, so you get thinner volume and these moves that dont carry. Today was nice in that it appears that china will come in september for facetoface meetings. It will probably have the same result as the other meetings, which is we dont go anywhere. Therefore, what happens is this is a profit taking opportunity in commodities that have rallied on this type of news, and then you step back into those commodities when the disappointment comes in, which im very confident is going to happen. Why would the chinese suddenly change tack on everything that the president is demanding . It doesnt make sense just yet. That doesnt mean it is not good to walk back from that line the way that happened at the g7, but i think getting overly optimistic. No. As we get towards the European Central bank meeting and then our meetings on september 17, it is going to be more easing of financial conditions, and you probably want to own the bonds and notes at that point again. Vonnie the dollar index keeps strengthening. What do you do about that down there . Are you looking for continued strong direction for the dollar, or are you betting another way . Ira i think what we have to watch is the title shift as to what happens on this next round between the European Central bank meeting and our central bank meeting. If the European Central bank does enough, traders might say they are doing enough, or maybe that currency starts gaining against the dollar. That would take the yen out of play as a safe haven for a bit, and may be dollar reverses. But that is a big if. If they dont pull the trigger in a big way, i dont think youre going to get a lot done. It is not only the ecb. Germany has to pull the trigger. Germany has to start fiscal spending. They have to get their economy going online here because they are in a recession, and they have to turn that tide. Vonnie well, you are echoing john rydings sentiments from a little earlier on. Our thanks to you, ira epstein associates, joining us from the cme. Bridgewater associates is missing out on the rebound that some macro managers are enjoying this year. Bloomberg has learned losses were fueled by bearish wagers on global Interest Rates. Tesla ceo elon musk says hes gettingen anything built as fast as their new electric car factory near shanghai. He spoke during the opening day of the world ai conference in shanghai alongside alibaba chairman jack ma. I think that the china team has done an amazing job, really mind blowing. Just astounded by how good the job is and how much progress has been made. Is they think china future. Its very impressive. Theie musks presence at conference comes despite demand from President Trump that American Companies find alternatives to doing business in china. South koreas highest court has ordered a retrial of samsungs vicechairman on bribery charges. They are sending the case back to lower courts. Facing aas also been downturn in profits from lower memory chip demand. Close,up on the european we have Algebris Investments Portfolio Manager Alberto Gallo joining us. And i want to point to another headline coming out from the National Hurricane center, saying Hurricane Dorian will become a category four storm in 72 hours. The National Hurricane center saying Hurricane Dorian will become a category 4 storm in 72 hours. Go to your bloomberg to see the path of dorian. Lets check markets now. We are off our highs. S p 500is up 0. 8 , the up 0. 9 , still higher on China Sentiment and the likes of Dollar General. Alsoof the Oil Companies performing well today. This is bloomberg. Vonnie 30 minutes left in the trading day in europe. From new york, im vonnie quinn. This is the european close on bloomberg markets. We are seeing a nice bounce across the globe today. 1. 66 after up conte has accepted a mandate to form a new government. That has italys 10 year yields below 1 again. Moneyard to see why, but flowing into bonds in italy, as well as equities. The dax in germany up 1 . Just a couple of stocks lower in germany throughout the session. One of those, the worst performer today, vonovia, germanys largest landlord. Theres a potential rent freeze coming to berlin, which has investors just a little scared. In the u. S. , also seeing a nice bounce