The week. Vix below 30. We have a stronger euro today. Europe definitely doing better on the coronavirus front. The 10year yield holding at those lows of 64 basis points. Kicking off this week. Investors awaiting report from the largest u. S. Banks. Lets get to brian levitt, invesco Advisors Global strategist. It seems there is more optimism than pessimism on the earnings front. Why should that be . Brian i think it is largely not investors view the Second Quarter as being priced in by the markets. 35 in 20 was down days, pricing in a bad secondquarter, and a big hit to earnings. From there, you assess whether things start to get better as the year progresses. Investors are largely looking out beyond the Second Quarter as there has been resumption in , as mobilityvity has improved, conditions have improved. It is largely a look at things getting better, rather than taking the Second Quarter will be anything but pretty ugly. Vonnie it seems investors will be cheered by anything. If you say the second is already priced in but will not be pretty , why would they have priced in positively . The market priced in a bad outcome. When you have is obviously a massive policy response on the fiscal side and the monetary side. You have seen reopens go well in many parts of the world, as well as the new york tristate area. That if people exhibit the right behaviors, you can resume economic activity. Now are there some hoax around therapeutic sand vaccines driving markets forward. It is a combination of things working to support markets. But we should be realistic. The composition of the market has changed. We have moved from a few weeks ago when everyone was talking about the breadth of the market and the early cyclicals, going back to the True Companies driving the market. It is not as if there is a , all businesses are participating, the early cyclicals are winning. We are not there yet. Buy . E are banks a brian banks are attractively priced. The challenge with banks is we are likely to persist in a low Interest Rate world, low inflation world for some time. To me, that would suggest a fairly flat yield curve, which usually is not conducive for banks to be the big winner. You would need to see reopenings go better in the u. S. You would need to see a more resumption in economic activity, really acceleration, in order for banks to take over the leadership of this market. Given that cases are rising, some states are talking about becoming more stringent in terms ofctivit i wld thi its an activity that favors more of the growth oriented businesses rather than early cyclical businesses, like financials. Vonnie is there a headwind that checks those growth stocks, weather conflicts with china, the election, or otherwise . So far there doesnt seem to be any headwind to check that growth. Headwind would probably come in the form of investors becoming concerned about the valuations although that has not seem to emerge or if there are concerns that the elections could lead to concerns about checks of monopolistic powers of these businesses. Anbably something that administration probably wouldnt want to do during the recovery. For now, if you are focusing on it from an investment practitioners point of view, in a slow growth world with rates staying relatively low, with inflation still weak, its an environment where you want to own growth. Vonnie if we get another round do you then begin to get worried about inflation . When should we start to get worried about inflation . Brian certainly not now. I think of inflation as the we hope so moment. We are still battling inflationary forces. Tips break at the even, it is at the low end of the feds comfort zone. Would really need to see it is not just the money being put into the system. You need to see the velocity of the system pick up. Right now it is quite weak. I dont think inflation is a nearterm concern, or in it or intermediate concern. There are Structural Forces weighing against inflation. Your forces weighing against inflation, the ongoing hit to demand as a result of us not fully engaging with the economy, and then Structural Forces weighing against inflation, which is aging population globally. I dont have inflation as a concern right now. I suppose if we get there, we view that as a good thing, meaning money is moving, demand is picking up. Central bankers would have to respond accordingly. I would have to give fiscal stimulus as something bringing inflation to the fore. Vonnie in terms of your global outlook, where else would you be looking, anticipating looking soon . Brian investors should be looking for growth wherever they can find it. That is not only in the u. S. But around the world. One of the interesting things that comes from this is, it seems to be breaking what had been a prolonged dollar cycle. Global. Came out of the financial crisis better than most. We are set to be the country where Interest Rates were going to rise sooner. That was strong dollar. That made it difficult for investors, especially dollar earners, to be in other parts of the world. With the fed now likely accommodating well into the future, big deficits, during a new dollar regime of stable or starts tolar, which have money start to flow into soer parts of the world, when i say on the slow growth world, look for growth, it is not only the united states. It is also going to be other parts of the world. In particular, parts of the world that seemed to be coming out of this on a stronger footing than the united dates is right now states is right now. Vonnie thank you for that, brian levitt. Now lets get a check on the first word had lines with Mark Crumpton. In the National Football league, washingtons team will no longer be known as the redskins. It is dropping the name after coming under pressure from sponsors and retailers. Principal owner dan snyder and coach ron rivera are coming to working to come up with a new name. Its a big reversal for snyder, who said in the past, that the name would never change as long as he owned the team. If you are black in america, the coronavirus is more likely to kill you, and the disparities have gotten worse as cases have begun to surge across the country. Where residents are mainly black, the death rate is 3. 5 times the national average, up from three times several months ago. In places with more than 100 deaths, blacks have made up 23 of them, almost twice their share of the population. Hong kong is taking steps to prevent the coronavirus from spreading. Ands shutting down gyms game arcades for the next several days. All inbound travelers will have to pass a virus test. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn. Maxim being acquired for Analog Devices to create a 600 billion chip behemoth. Scarlet fu has more details. This is a deal to add skill. It brings together the number two and number three players in the chip space to create a star competitor to texas instruments. Considered onee of the more boring corners of the semiconductor market. Realworld signals like temperature and sound into digital data. Sectors tend to be a source of a lot of the man, but they are under pressure given the slow down in the Global Economy. When that happens, orders slow down over all. That is a contrast to a company like nvidia, which makes chips for gaming and the cloud. Analog chips are fairly cheap to make. As a result, they have some pretty fat Profit Margins come around 65 . They are cheap to make, and they have a long shelf life as well. They dont need to be updated on an annual basis. Fascinating deal and they are two of the largest players already. What is the likelihood for any kind of a bidding more . This is one of the biggest deals out there. Whoever comes in would have to be a pretty big player themselves. Identified possible bidders, texas instruments, microelectronics, infineon on technology of germany, these companies could potentially outbid analog, but they say it not likely. Texas instruments coming in is unlikely, but that would run into antitrust concerns. And it is not just u. S. Regulators who would be scratching their heads at this. Regulators in other countries would need to approve as well, diashey did improve nvi purchase earlier, so the thinking is this probably would get the goahead. When you look at what maxim relies on, it does rely on china for a third of its sales. Given u. S. China trade tensions back again, this deal could become a bargaining chip between the countries as they move forward. Theie once you get past first handful, then you get to companies that are much smaller for consolidation. Thank you, scarlet fu. Florida, home to Walt Disney World home parks theme parks, have reported some of the highest numbers of coronavirus cases since march, but still parks are opening. The debts that are happening , there is a lot of trust that we are going to open up in a responsible way. Also the theme park cast members trusting us to communicate with them effectively. I think we have done a really nice job of that. We have been down for four months, we were one of the first theme parks to close, and we are the last to open. We spent a lot of time programming this experience to make sure we uphold our responsibility. You have cases and deaths hitting records highs in florida, people in the hospital who are not happy with your reopening. A lot of people are asking why open now . Why not wait a few weeks or months . This is our new normal. This is the world that we now live in. As i said, we created a really environmentrating where we are in control. We have new safety protocols in place of everything from where face masks to temperature checks distancing to new cleanliness standards, and even a reservation system. If you want to show up today, there is a reservation system in place so that we can control the number of guests in our theme parks. This is the new normal we are operating in, and we feel like we have a way to operate in the new world. We have seen some photos online, one of a line, no social distancing, so can you do all of this . New environment we have created, there is a responsibility for our guests and our operating environment. As we continue to open up, we are modifying where we need to. General, if you were to walk down main street today or look around, you would see a different experience than you ever have before. Would you take your kids to disney world, would you tell your friends and family that now is safe to come . Absolutely. Whether it is right here at Walt Disney World or disney springs, which i recently went to, we just reopened in anaheim, absolutely. You went around and talked to guests, they feel good about being here. If they have concerns, when they are ready to come, we will be ready for them to come and visit us. What about employees . It is one thing to visit wants, but another thing to go in day after day. [indiscernible] employees and cast members who do not feel safe. What do you tell them . I spent a lot of time in the parks yesterday, we had some annual pass previews yesterday, we walked around the animal kingdom. I spoke to hundreds of cast members. This is a big deal for us. They have a lot of trust in us. Its important that we educate them, train them in a new way, demonstrate the safety protocols we have in place. The cast members are feeling really good. From a union perspective, im proud of the relationships we have with our union. We have unions that represent 50,000 cast members here that have reviewed our guidelines and agree with them. It is a big responsibility. Gone abovee we have and beyond to make sure we are creating a solid environment. Vonnie that was the disney parks chairman speaking with emily chang. Just this morning, a disney spokesperson announced Hong Kong Disneyland will temporarily close on wednesday. This comes as hong kong officials tighten restrictions in that region. Still ahead, learning in lockdown. Online learning platforms saw a boom as cities went into lockdown. As cities reopened, we will speak to the ceo of Online Learning school outschool biontec. This is bloomberg. Millions of of students around the u. S. Spent most of the last school year learning remotely due to the coronavirus. With limited resources at home,. Utschool saw a huge increase joining us now is the ceo and cofounder amir nathoo. You say a 30 increase. Tell me how many students use on enrolling in your classes, what you anticipate for august and september. Amir we saw hundreds of thousands of students sign up. We expect that to jump again the going into the fall. Unfortunately, it looks like this years back to school will be nothing like the normal back to schools given the current situation. Vonnie you have 50,000 plus classes. How do you get teachers, what kind of rates to they get, who sets the rates . Classes are live online classes, meeting in small groups, video chats. Its important that they are safe and engaging experiences. Background checks, we also have an application process. Every teacher is approved by our team. Class to makery sure that it is objective and ageappropriate. And we believe the teacher can provide a great experience. Families are responding incredibly well, giving fantastic it back, you can see on our social media even that is a little bit about how we have the teachers. We are grateful to be providing such a useful service for many families who need to occupy their kids. Teachers understand set their own prices, so it is like a bidding war. They pitch their class. How do you prevent a race to the bottom if there is a lot of competition for one particular class . Amir great question. We see teachers setting prices an hour. 0 and 15 its a fantastic rate for classes and teachers. The classes could range from three kids to 10 kids. The nature of small groups means that parents can pay less, and teachers can earn more, as opposed to oneonone teaching. The teachers are typically earning 60 an hour using outschool, and some are earning more. Vonnie i noticed some of the classes are themed. You have pokemon grammar, minecraft architecture. What do you do to boost those teachers that dont have a gimmick but may be extraordinarily brilliant and maybe the kind of teacher that students will remember most but are not getting the engagement because they dont have that ability to attract online . Amir every kid is different and want different things. Not every parent or child is looking for the pokemon glasses. People are looking for different things. Someone may be looking for core academics. We allow teachers to set their profile and differentiate themselves based on reviews, qualifications, the descriptions of why theyre interested in the subject. They record short intro videos so you can learn more about them in their teaching style. There is no one best teacher in the world for any subject. Its all about what works for your kids. That is why we offer those services to teachers taught to let them express themselves. We encourage them to get creative and teach the classes they have always wanted to teach. It turns out that is what families want. Vonnie good luck with the new school year, amir nathoo. We will be looking at educational issues throughout the week. Ceong up later, the walmart joins David Rubenstein for the latest installment of leadership live, today at 4 30 eastern. This is bloomberg. Mark im Mark Crumpton with bloomberg first word news. Wear a face coverings in confined spacious such shops. He added the government would be making an announcement in the coming days and whether they should be mandatory in those settings. The mandatory on public transport, but they have value where youd spaces, are coming into contact with people that you dont normally meet. What has been interesting on the face coverings issue in the last few months is that the scientific evaluation of face coverings, their importance in stopping aerosol droplets, that has been growing. Masks were made mandatory in scotland. Prime minister johnson government will launch a campaign to urge businesses to prepare for the end of the exit brexit transition period. Only a quarter of directors say they are ready. Meantime, british Authorities Say they will spend 890 million on new border infrastructure. China is imposing sanctions on marco rubio and ted cruz over legislation intended to punish beijing for its treatment of ethnic minorities in the countrys far west. Several other officials were also named. The move is largely symbolic. Last week, the u. S. Sanctioned a member of the communist party and three other officials over alleged human rights abuses. Top universities are backing harvard and m. I. T. In their fight against the Trump Administration over student visas. 60 schools have filed a brief in support. Harvard and m. I. T. Are trying to stop the government from him or sing guidelines that would bar some International Students from entering and staying in the country. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. From bloomberg World Headquarters in new york, on vonnie quinn. We are joined by our bloomberg and Bnn Bloomberg audiences. Amanda lang will join us in a moment. Here are the top stories we are following from around the world. Worldl banks around the announce rate decisions and guidance on the world economy. We focus on the ecb and the bank of canada as the governor elites his first full meeting at the helm. With ross speaking generally about his latest venture fund. He says companies are crazy cash burning and will face a reckoning. The biggestrted oneday rise since the pandemic began in the u. S. We speak with dr. Arturo casadevall about his work in recovering covid19 patients donating plasma to treat current patients, and also developing a vaccine. Lets get a quick check on the major averages. The deal helping the nasdaq to gains but its across the board. The s p 500 up 1. 5 . The dow jones up by 2 , led by pfizer. Today. Lar index, weaker a stronger