Is real simple. The economic gloom is tangible and the market brushes it aside. Good morning, everyone. This is bloomberg surveillance. On bloomberg radio, on bloomberg television. The bid keeps coming in. It is not about being up. It is the quality of the up that is so important. Jonathan the last several months, rotation on, rotation off. It was rotation off since june or so. In the last several hours, rotation back on. That means the cyclical parts of the market do better, tech underperforms. The Treasury Curve steeper. Dollar in the mix as well. That is the thing a lot of people were trying to position behind. It didnt quite develop over the last month. It is back on this morning. Betterldman sachs with than good earnings. I have not gotten the appropriate up remotes the appropriate eyebrow, whats amowiczropriate abr briefing. Lisa theres an incredible dissonance between the pessimism we are hearing from the banking chiefs right now and the optimism you hear from a lot of fixed income investors going deeper into risk, plowing into highyield debt after trying to hide out in higher rated credit for most of the year. The tension here, the rising number of bankruptcies, a Record Number of retail bankruptcies in july alone. In health care, in a number of other different industries, how did that pair with yields near their lows . It is hard to understand without the fed and how long the fed backstop is really going to weigh in here. What we are tom going to do here is go to one of the best minds on fixed income, but really vamp it out to the x markets and all we see here. s with one of the most prestigious commendation degrees on global wall street. He is with pgim, their fixed income chief investment strategist. I am going to cut right to the chase, which is what the action will be of corporations given this odd market. Do they issue equity here with . Hese crazy valuations what do you predict the action will be . Robert thank you. I think you have to imagine one of those perspective drawings where all of the points come together way out in the future. Ist the market is imagining conditioning. The growth is going to come up, and what is going to come down, stay above and not hit the zero line is the cash balance. So the corporations have come in and they have funded to get to the other side of this, and that is why, in a world where cash is going to be locked down at zero, youre getting the fed hunkered down. Lyle brainard coming out yesterday, emanating that they will be going to yield curve control if they have to. The corporations are going to try to get to the other side, so for investors that have these huge money market balances and are tempted a little bit out into may be gold or tech stocks, to go out into highquality fixed income over 2 , depending on where and what they are going into, going into highyield at 5 , not necessarily going into the dangerous stuff, but trying to stay clear of that, they are going to end up rounding out their portfolio. I think that is why you are seeing credit spreads do well, as you would expect way in advance of the economy coming up to the zero line. Jonathan what is the dangerous stuff . Robert the dangerous stuff is , anybodymortar retail that doesnt make money at this level of energy costs. Market at the the , of course, there are longer concerns about what real estate will be, given the variety of real estate. You have a lot of stress there that is going to come through in certain areas of structured products. And emerging markets, a lot of emerging markets were struggling before this. Along with the southwestern united states, all of latin america, all of india, they really had their work cut out for them with this virus, and people are going to be dealing with this for a long time. But it really piles on to their problems. Having said that, the opportunity side in fixed income , i am embarrassed to say it, but it is spectacular. Last time i was on, you were pushing me. Why credit . The front end of the curve in the u. S. Is not going to move, but the back end is attractive. The credit product on a diversified basis, whether it is your hard currency em or highyield structured product do well. , theirt of that, europe fixed income is even better supported than u. S. Fixed income. They have less supply, and the ecb is more aggressive across the credit spectrum, and is likely to remain so. And it doesnt stop. We saw this morning lowinflation prince in south africa lowinflation prints in south africa, i think it was. A bad market like this feeding through weaker currencies into higher inflation, higher rates, and a worse economy has been broken. Inflation numbers are staying low. It is what you are seeing in brazil, south africa, a number of these places. Steep curves where you can buy the bonds on a hedged basis, more aggressive portfolios, and capture a lot of rolldown. So you dont want to go crazy. Dont want to dive into any one area deeply. But for diversified fixed income portfolios, depending upon the risk appetites, it is a spectacular environment. Jonathan let me pick out the most boring one, the 30 year at 1. 44 . Did you ever think you would say the long end of the Treasury Curve would be attractive at 1. 44 . Robert it is, and looking at the forward rate, something in the back of my mind, the way demographics and debt are going, ive always said that the neutral fed funds rate is a 0. 5 in nominal terms in the u. S. That is where we have been headed. The crisis has accelerated this process. Rates have been low around the world. Rates havent even fallen in europe because they were already at their effective lower bound. So we have already kind of the point where rates are not where they should be for the environment, but they are not low enough to get accelerating growth in inflation. So this is kind of where i thought we would get stuck. We arent. The problem for the back end is supply, but i think it is somewhat attractive here. Lisa i want to ask a really basic question. It is a spectacular time for credit, you say, and yet companies are selling more of it than ever before into an environment of slowing growth. Youve got carnival selling debt yet again, raising a total of 8 billion in just a couple of months. The bridge to the other side is expensive. The other side is not one of robust growth. What is the risk longerterm that you are not going to get paid back at a time of excess debt and slow growth . Robert i dont want you to think i am a total maniac. I am actually not that amped up to go on a cruise. They have borrowed a spectacular amount, and the issuance is going to be down in the second half. So you are at a point where investors are starting to you know, the whole latter 70 of the way, that maybe the way they should be looking at credit, the supply is now going to go down. Think the issuance has been i think we have done more than last years full issuance volume in the first half this year. This is an environment where capex is going to be diving. Veryu are going to get a positive technical environment here, despite the fact that your defaults are going to be high in these pockets of highrisk we mentioned earlier. Jonathan i would never call you a maniac. Very thoughtful stuff as always. Tip robert tipp thereof pgim. The story you are looking for, the equal weighted start getting off again off the back of the rotation. Nasdaq futures underperforming s p 500 futures. That fades in the last couple of days. Tom i cant concentrate because i think mr. Tipp had a great idea. Should we be doing a bloomberg surveillance cruise, the three of us . Lisa oh my god. Jonathan why dont you go first . Then give us a call. Lisa i will take that. Tom we can leave new york harbor, go up to boston. Jonathan a couple of problems here. One is the cruise itself. Two is a vacation together, which i dont think we are ready for. Tom ok. We could fly into milan, take the cruise. Jonathan i will fly into milan. You have a good time. Report back to us. Tom what do you think am alisa . What do you think, lisa . Lisa you should take a trip. Tom tom i would wear my bowtie is my swimsuit. Jonathan no one needs to see that. Tom, great to be with you as always. Alongside tom keene, together with Lisa Abramowicz, im Jonathan Ferro. In your equity market, we drift higher by 46 on the s p 500, up by 1. 44 . I just got this image now that i really want to get rid of. Coming up on the program, patrick harker, Federal Reserve bank of philadelphia president. The conversation just around the corner, 20 minutes away. This is bloomberg. Ritika with the first word news, im ritika gupta. It is a big victory for apple at the European CourtGeneral Court over an eu order to pay ireland a 14. 9 billion tax bill. The court ruled that the arrangement to pay a lot less was not illegal state aid, a crushing blow to the antitrust chief trying to crack down on preferential deals to selected companies. President trump has moved to punish china by imposing a sweeping National Security law on hong kong. The president ordered an end to hong kongs special trading status with the u. S. And signed legislation that would sanction chinese officials responsible for cracking you down on political dissent in the city. A hong kongears of brain drain are increasing. Would undermine hong kongs appeal to thousands of bankers and other whitecollar workers from the mainland. They could face a tax rate as high as 45 . Bank of japan out with a gloomier picture of the economy. The central Bank Forecast projects japans gdp will shrink 4. 7 in 2020. They left policy unchanged come but indicate unchanged, but indicates they are ready to change stance. Tommy tuberville beat Jeff Sessions in alabamas Republican Senatorial primary. Sessionsdent turned on after he recused himself from the russia investigation. 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. Im ritika gupta. This is bloomberg. The banks will take the income this quarter, and in the Fourth Quarter when they read off the loans, they will deduct money for reserves being established today. That is why the Capital Markets numbers are so important. Jonathan and the Capital Market numbers are better than good at Goldman Sachs. That was Gerard Cassidy of rbc. The big banks really delivering. From new york this morning, good morning. Alongside tom keene, together with Lisa Abramowicz, im Jonathan Ferro. In your equity market, we are at session highs, up 44 points on the s p 500, higher by 1. 37 . Goldman sachs near session highs as well in the premarket, up by 4. 34 . Theres a lift to this market, a rotation into the banks once again. Eurodollar 1. 14. Yields up by two basis points to 0. 65 . A vaccine driven market, but i would also say theres much more going on here than just that. See jp morgan, Goldman Sachs get it done. Citigroup as well. Struggling wells fargo makes it interesting. Abovetures up 537, nicely dow 27,000 right now. Bolu is with us, Autonomous Research analyst. He has particular experience at bernstein and the acclaimed banking black book at bernstein. How did serpent the super regionals reaction to big bank dominance . Do you just presume a banking merger rollup frenzy coming off of the realities of Digital Banking . Christian good morning. Thanks for having me on. See the originals or Capital Market i dont see the regionals looking at Capital Market gains. It is not particularly helpful at times like this when the economy is under stress, and credit sensitive earnings are under stress. That is very helpful for a time at this particular, particularly for stocks like Goldman Sachs come over they have a particular strength in Capital Markets. Aroundu used to walk with neck braces, there was so much whipsaw in Capital Markets. Are they still there . Christian thats a great question, tom. It is still in there, but volatile. Markets are very volatile, but the Business Models have transformed over the last decade. They are far less volatile, much more client driven. The banks take far less credit risk. Much of that risk has been pushed into the shadow banking system. So it is still volatile, just like markets are volatile, but from an earnings perspective, you certainly see a much more consistent and kind driven earnings streams from certain links of the u. S. Investment bank. How peopleties are are increasingly referring to banks. If there are more utilities in the credit offsets affect in the credit loss aspect taken off the table, how much does this become an income gain . Ellison williams of Bloomberg Intelligence was talking about a dividend game more than anything else. Christian it is a great question. I think if i look at Goldman Sachs, for example, in the middle of a fairly steep recession, their posts are close to 9 . That gives you a sense of the resilience, particularly of the players, thefied bigger banking institutions. It is a fair question. I think ultimately, that is more of a regulatory question for the fed. If you look at what has happened recently, the fed has tried to restrict capital returns into a , so it is unclear if the fed will be allowing banks to pay out much more in dividends just because you want that sort of capital buffer in a downturn. I would say fair question. I think what this recession has really proven is the resiliency of the models, relative to what the fed told you. The stress tests come of the banks have performed far better than they are treating some businesses. Lisa looking ahead to the next half of the year, we have been saying that the Capital Markets business come the trading business cannot continue. That was unprecedented with what we have seen so far in the second quarter. Which business in the big Investment Bank sector will lead in the coming months . Christian that theres actually no rea surprise here that in the very early cycles of the end of economic cycle, theres always a lot of demand for Capital Markets activity. Just equity raising, debt , and just moving risk assets around, which tends to drive activity. That is inevitably going to slow down over the next couple of quarters. Goldman sachs put out almost 150 year on year gains in fic. That is unlikely to change. But there could still be some strength going forward. What we would expect is that maybe businesses like m a, which are currently depressed, to maybe start to pick up not so much the back half, but may be over the next few years as we move past the election cycle incorporates gain more confidence to take on election cycle and corporates gain more confidence to take on big decisions. Jonathan thank you for your time this morning. Lisa, you mentioned the other side of the business, the other performing side of the business is the consumer. Youre going to need the weakness, the laggards in these businesses to really pick up in the next coming quarter because we have seen Capital Markets dominate in the previous quarter. Again, a repeat act is going to be a huge lift. You had jpially when morgan, jamie dimon coming out and saying investors do not act as they typically do during a recession. They have been fortified by , asntial federal support well as other stimulus measures. What happens then to all of the consumer loans in that business . Jonathan i dont think they are being pessimistic. I think they are just being honest about the uncertainty in the months and maybe year ahead. Tom no question about it. These guys know they are not virologists. It is all about the vaccine, and today a big lift. Futures up 46 right now. Wet i really want to know, talked about this last week, is the path from furlough to layoff to hiring. Jonathan up next on this program, patrick harker, Federal Reserve bank of philadelphia president come alive on bloomberg tv and radio. This is bloomberg. Jonathan and equity market rally going into the opening val. Equity futures up 43. That is your price action from new york. Alongside Lisa Abramowicz and tom keene, im Jonathan Ferro. With your economic data, here is Michael Mckee. Michael the july report on Empire Manufacturing from new york turns positive for the first time17. 2, a significant ie there. We see new orders, production, and even employment. That is new york. What is happening in pennsylvania . Joining us is patrick harker, the president of the Philadelphia Fed. Good and thanks for joining us. I mentioned new york. What is happening in pennsylvania . We have seen the covid caseload start to rise there. Can you give us a feel for what is happening in your district . Looks like we are having a little bit of trouble with patrick harker. Let me bring in jonathan and we will see if we can get pat with us in just a second. Jonathan we will get back to you as soon as we can get that connection sorted out. Pat harker is standing by quite visibility. The s p up. Mike mentioned the Empire Manufacturing number in new york city for the month of july. A big upside surprise. I wonder how much divergence we are set to see in america given what is happening across the sun belt and the slower and more conservative reopening in new york . Tom you are dead on in that there is such a partition between the challenges in florida and texas. Arizona doing a little better today on the pandemic. The heritage of statistics from the empire state out of buffalo. Also, out of philadelphia. I cannot emphasize enough the heritage of manufacturing statistical gatherings of philadelphia. This was before harker and the rest of them. Philadelphia gets a snapshot of Business Enterprise i would suggest is only comparative with chicago. Timely that we have mr. Harker with us. Where didnathan former Vice President joe biden go to deliver that speech on the economy . Scranton, pennsylvania. That will be a huge focus in november. The aggregate numbers for the economy will only tell you so much. We will have a huge fragmentation beneath the surface. What you see playing out in california as they reverse the reopening. In texas you might see consumer and businesses pullback, already evidence Economic Activity is stalling. Will we see a more seamless pickup in new york city and beyond for the state of new york and how far can that go given what is happening elsewhere . Lisa by the time we get this data it is dating. This is a highfrequency era and there is such a shifting environment based on the virus. What you are seeing in the indicators the new york fed put out seeing a decline, highlighting the concern about what is going on with respect to the increase in virus. Jonathan look at the market, up 45 points. We advance 1. 4 percent on the s p 500. The data will be difficult to read as lisa points out. Script will rip up the with the advantage of having Michael Mckee with us. Some technical difficulties with the Philadelphia Fed. Your encyclopedic on this. Tell us what philadelphia does that assists the chairman of the fed and knowledge about traditional manufacturing . Michael it is not just the manufacturing the philadelphia area, it is the longtime Philadelphia Fed survey that gives you a rich database to track changes in the overall economy. Obviously like the rest of the country philadelphia has become more Service Oriented in recent years. It does sound like we now have pat harker with us. Can you hear us . Pres. Harker i can. Good morning. Michael i was just touting the Philadelphia Fed survey. We had the Empire Survey a few moments ago, the first time it is positive since february. I want to ask you how things are going in the pennsylvania area. I know the covid case has risen. Are you concerned you will fall back that same situation we are seeing in the sun belt states . Pres. Harker the tristate region, pennsylvania, new jersey, and delaware, we have seen an uptick in the covid cases, but the governors have taken action to slow the spread of the opening. I am not that concerned. I think generally the virus is wellcontrolled. It is still a tragedy and there still a lot of water to be done a lot of work to be done, but im not that worried for this region. Michael what is your view of the economics of the region . How hard have you been hit . How hard are you going to be . Pres. Harker the Manufacturing Sector has bounced back. We are seeing some good news there. We are particularly the city of philadelphia itself i am concerned not about the large medical institutions that have lost a lot of revenue because of elective procedures being also Rural Health Systems have been hurt badly by this process. Michael what about the overall u. S. Economy. Now that we have seen this flareup across much of the country, are you revising your Economic Forecast or your outlook . Pres. Harker prior to this we saw a pretty big hit in the first half of the year. We thought it would bounce back around 13 in the second half, ending around 6 down on gdp for the year and unemployment around 10 . We are revising it down because with the virus searching in the south and southwest of the country, we are concerned about that. I am concerned about that. This will be a slow recovery. Until we get the virus under control we cannot get the economy back at full throttle. Michael you mentioned education in medicine. You came up as an educator. How important is it to get the schools reopen . Pres. Harker it is very important but we have to do it carefully. We do not want to put people at risk. To start, we know in a childcare business, about half of the childcare institutions, many of them are Small Companies taking care of children. About half of them closed. The remaining ones lost at least 50 capacity remaining open. If people cannot find care for their children or be able to get their children to school they will have a hard time working, and particularly in a knowledge economy where peoples productivity is there knowledge. If they are concerned about their children and that is weighing on their mind, it is human nature they will be less productive. It is important, but we cannot do it in a way that puts children or communities at risk. Michael a lot of risks to the economy that do not seem to be reflected in equity prices. Are you concerned about the level of stocks and whether or not it is sustainable or whether we might be seeing a bubble that could pop and take the economy with it . Pres. Harker the equity market is a measure we look at, but i also remind myself it is not the real economy. For me as a policymaker, i am looking at the signals from the real economy. Employment data, inflation data, and so forth. That is my big concern. Michael you think there is any role for the fed in controlling the rise of equities at this point . Pres. Harker at this point we had to act early and aggressively to help stem the damage from the unprecedented pandemic. We did that. That was job one. Now as we start to climb out of this, hopefully sooner rather than later. We will address other issues. Thead to act to secure economy and help save as much of the economic infrastructure in the country as we could. Michael what more can the fed do . It was suggested yesterday that you let the economy run hot and explicitly say you will let inflation rise. Is that a strategy on the table . Pres. Harker weve been saying for a long time the 2 inflation goal is symmetric, which means we should overshoot it. We are having a difficulty time doing that. I support the idea of letting inflation get above 2 before we take any action with respect to the fed funds rate. Michael you think the fed can do a lot to stimulate the economy or is it up to washington . Pres. Harker there are things we can do. We continue to land and we have that authority. I think the main issues we are facing tend to be on the fiscal side. I would agree with that. Michael what is the most important thing to come out of id . Hington, what kind of a where is the economy the weakest . Pres. Harker i do not want to l Congress Want to do but there is a need to get back to work and people want to get back to work but we cannot just cut it off. If we cut it off people stop spending and that will be a hit on the economy. Second, we are seeing the same kind of cliff effect for state and local governments. If they start laying off lots of people we talk a lot about anchor institutions. One of the big anchor institutions are state and local governments. They need help. Those are two that are important. About,rd, that i worry is Small Businesses. How to maintain the strength of Small Businesses, particularly for minority communities. The National Bureau of Economic Research put out a report saying it is about 40 of black Small Businesses are closed during this pandemic. This is not only decimating to those businesses, but to the communities they serve. Michael what can the fed do . They are banking supervisors. Yesterday you were critical of the paycheck protection programs that focus more and banking relationships rather than needs. How can you design that and where would the fed act . Pres. Harker i was not saying was critical, what i was saying is these micro enterprises, and we have lots of those around the country, they do not have banking relationships. For a lot of reasons they do not trust the institutions. That is a group problem. We have to solve that problem. I do not accept the fact people do not have a banking relationship as the status quo and we should accept it. We should work on that. We should bring people into the system so they can have access to things like ppp programs and lower fees and better services. Michael i want to ask you how you are following the economy. We have had two better than reports. You think we get the same thing for july and doesnt natter . Matter . Oes it pres. Harker with the resurgence in the virus, i am skeptical we will see as good a jobs report. It all comes down to controlling the virus. The health of the virus is dependent on the health of all of us. Until we get the virus under control, we will not get the economy back to where we want it to be. Michael you mentioned we are coming up on the fiscal cliff in july. At the end of september we will have a lot of your lending programs expire. Do anticipate they will continue . Pres. Harker it will depend on what the state of the economy is at that time. Michael thanks very much to patrick harker, the president of the Philadelphia Fed. Thanks for joining us. Jonathan ferro is with us. Jonathan brilliant work as always. Always enjoy your conversations with fed officials. Quite clearly there will be a big focus on forward guidance. There was a line from president harker supporting letting inflation rise above 2 before liftoff. We have heard this many times before, how you formalize that and cemented and doubled down with forward guidance, that will be the key effort. Tom we can go into a clinic with michael on rules of discretion in the track of inflation, but the answer is we are miles away from any inflationary impulse. Jonathan and given the extent of time we have been below capacity, the consensus view is a world of disinflation for developed market economies. In this market we drift higher. The rally continues. The rotation of the last 24 hours gets a little bit more oxygen off the vaccine optimism. Off the back of that, futures up 1. 4 . The dollar weaker, the euro stronger. Next,p next, i con up the irish finance minister live on bloomberg tv and radio. This is bloomberg surveillance. Jonathan this is bloomberg surveillance live on bloomberg tv and radio. Your equity market drifting higher. I will step away to bloomberg tv to get you up to speed on the opening bell. We will catch up with tony dwyer. The week is all about europe as the week rose older. It begins this wednesday in dublin, ireland. Tom a major shout out to mr. Dwyer and people like Gina Martin Adams who have stayed in this market. It is about ireland and the bombshell announcement on apple can. What is wonderful about this is we have with us the finance minister of ireland. Paschal donohoe. What is so interesting of mr. Donahoe is his track from Trinity College in dublin to corporate work in the United Kingdom for procter gamble. He has lived the multinational lness of the United Kingdom and ireland. Finance minister, we are thrilled to have you with us. Were you surprised for this huge win for your nation for tim cook . Minister donohoe i always believed such an outcome was possible. Ireland has been very clear for many years that we do not make special agreements with any company, baker small in our country, and all taxpayers are treated equally. We value the relationship we have, like we value the relationships we have with all employers in ireland. We do not do special deals for them. This move is a recognition of that. Michael you have lived this with tom you have lived this with png years ago. I want you to explain to those of palmetto europe and those worldwide that appropriate tax policies is not a theft from the general taxpayer. Minister donohoe i believe it is absolutely imperative that Big Companies are taxed effectively and they are taxed fairly. I also believe that for very big digital companies, how we are going to tax them in the future is going to change. What was so important about this particular issue is an allegation was made that we were treating apple differently to other taxpayers in ireland. The matter ended up in the General Court of the European Union and it has been settled in the way you have now described. The message for me is a finance minister in europe is that companies, whether they are from europe, america, or anywhere else in the world have to be tasked effectively and fairly. This was an important issue for our tax code in ireland. Lisa moving from taxing to spending. You are the head of a group of 19 finance ministers that will all get together this weekend for the European Commission meeting where they will be speaking about the trillion euro budget as well as the 750 billion euro plan that has been proposed. How much pushback are you hearing from the frugal four on what has been proposed in bringing the stimulus down. Minister donohoe there is a diversity of debate in relation to this particular project within europe and inside the eu. Very broadly, the point i would make to you and all of your viewers is this is a signature deepening itsope economic architecture and deepening the foundations of the euro. We are doing that to strengthen the ability of our own economies in europe to respond to the economic shock culvert. Because this is such a big project, of course there are different views. I believe that within the European Union we Reach Agreement on the matter. There is concern for my colleagues and friends on how in some countries regarding the scale of the bond and how this money can be used effectively, i believe we are free creating an aagination where we will find way of reaching agreements. Tom i want to go back to apple. The sovereignty issue is absolutely critical going back to Trinity College and elizabeth i and the formation of liberty in ireland. What this decision is about, pulling into all of the different eu meetings, is about sovereignty of nations to make their own laws. What does it mean for brussels to see this victory by you today . Inister donohoe actually, believe in the building of sovereignty and i believe in the sharing of sovereignty. Supporter ofate the european process and a deep believer in the process of european integration and the need for a look at how we can strengthen it in the future. I would regularly make the case in ireland and across europe and across the world that the european project, both economically and politically, is an extraordinary achievement that i want to protect, i want there are always a number of particular areas in terms of how decisions are made and how they are implemented that are always going to matter to individual nations. From our point of view the reason this is so important is it creates the inference that we used our National Sovereignty to give favorable treatment to a company. That was not the case. I may cause the case and i make that argument in the context of somebody who as a european politician believes in the eu and the sharing of sovereignty. Inside that architecture, countries still have roles and responsibility. That is why this hearing was so important. Michael tom thank you so much for joining us this morning. Paschal donohoe is the irish finance minister after the extraordinary ruling out of doubling on apple computer. This has been an extra ordinary day. Dow up 557. 9, the the bid continues. There is no end in sight from the ramp up we have seen this morning. Lisa we are talking about the dollar weakness. The euro has been strengthening and is currently the strongest since early march. A lot of it has hinged on what the irish minister is saying. People believe there may be some agreement on the trillion euro Financial Plan as well as the 750 billion euro fiscal stimulus , and my question is what is the liability if it does not come to pass. A key issue heading into the weekend. Some of this bid is the reaffirmation of sovereignty over brussels. This is a huge deal for apple computer. Mr. Cook will speak on it. Emily chang will have coverage. All of Bloomberg Technology today. It has been extraordinary to see that bombshell announcement this morning. Well continue our coverage of the equity markets with Jonathan Ferro on television. Paul sweeney and i will be on the radio to drive forward a big dow opening. Coming up later, the Lieutenant Governor of california. That will be most timely and most interesting. Challenges in the pandemic across the california. Stay with us. This is bloomberg. Jonathan from new york city for our audience worldwide. Im Jonathan Ferro. The countdown to the open starts right now. 30 minutes away from the opening bell with ebony features of 48. We begin with the bait issue equity futures up 48. Tech underperforming in the Treasury Curve steeper. Fueled by renewed vaccine hopes. Buffered by a huge quarter for Investment Banking and Capital Markets. Those earnings coming with a csuite reality check and many words of caution. Jamie dimon saying this is not a normal recession. The recessionary part you will see down the road, just not right away because of it is all the stimulus. Joining me a scarlet fu. It is a tugofwar between reality and hope and hope this morning is coming out on top. Scarlet it has been that way for a couple months. This is not a normal recession. It was induced and depends on a medical solution