The nasdaq was lower but it is catching up. And the dowup. 9 up by about as much. The dollar index is stronger. Still below 93. Two of the better performing stocks, brownforman which is the topperforming stock primarily thanks to a surge in spirits and of course, the Michael Jordan news. Rally,g with the equity citigroups Tobias Levkovich recently raising his target on the s p 500 to 3300. He joins us now by phone. Thank you for joining. We are a little bit higher than that right now. There is going to be a leg lower to this market. It is still going to hold up somewhat into the end of the year. We are not going to see a crash according to you. Tobias the best way to put this is the fed is going to prevent it in many respects in terms of policy initiatives where there is this fascinating feedback loop phenomenon where stock prices go down, he will start getting very worried. People will start getting very worried. It will ebb and flow. It is unlikely for the markets of the you about 40 s p 500 names are sitting at 20 or below from their 52 week highs. Back in march, it was 96 . When your stock prices are down, you start saying something bad is happening, we should cut back on investments, maybe trend or workforces cleared there is an maybe trend back or workforces. From thety, leisure, banks, things like that have a negative repercussions and we have a totally buy for kayden market where things are soaring. Vonnie we have been watching that phenomenon for some time. Does that phenomenon change or does everything move lower or higher in concert . Suspect, and i cannot guarantee this, but when we get to a point of comfort to go out and do things the way we did before covid hit, whether that requires a vaccine or therapeutics or things like that, the Growth Potential of some of the stocks that have been suppressed will be expanded pretty dramatically. They can be a lot cheaper to get that growth than some of these larger names that everybody has been excited about as sadly beneficiaries work from home in shelterinplace. All of a sudden, i can buy something cheaper, why am i buying the stuff that is expensive . We can see that transition in the market. Thoseoblem is some of powerful names are very vague weights and it is likely that those pullback in the market cannot get out of its own way almost. Vonnie how big is the danger of the rush to the exits and it becomes a little disorganized . Tobias on an individual stock basis, i think they can get a little tortured just like we see sometimes stocks go up, that does not mean they could go down 40 in one day. The market is harder because of the Circuit Breakers in place today to prevent things like the market crash in 1987. I dont think you have it that bad in the market because at some point it will shut down for today if it was that awful. I think individual names where there has been more speculative activity, these are treacherous places to be. Vonnie given that you are looking at 3304 yearend and 3600 here, what is your best case for a fiscal stimulus because what if we dont get anymore . Assuming that there will be some more. Tobias right now it is caught up in the election politics and positioning. Sadly both sides do not want to compromise enough. We should all get used to that because that is what happens in politics and it certainly happens when you are 8 weeks from an election. I think postelection there will be some meeting of the minds because they will have to do something on continuing resolutions, they will have to fund the government and at that point there will be flexibility, the elections are over, either Party Winning those we have to put some money to work. From what i have read in the press, there were 8 states that the democrats wanted 1 trillion and the republicans dont want to provide it. The republicans want federal legislation to project protect businesses from lawsuits related from related to people coming back to work. Those are the Liability Protections and the data to the states seem to be the biggest stumbling blocks currently aid to the states. Once you are past the elections, you are going to have to do something and fund the government. Vonnie not just because of that, but also at that point people will have been out of work for a very long time and we are getting more and more reports in another airline talking about furloughing 16,000. Riso presumably more than that. The stock market is holding right up there and yet you cannot afford to make your purchases on whatever it may be. Tobias one thing that people have to understand is the market is not necessarily the economy. There is a tendency to think of them as linked. The last recession in 2008, 30 of the s p 500 is cyclicals,f the industrials, materials, energy. Another 30 was comprised of secular companies which would be technology, internet retailing, Media Entertainment and healthcare. 57 for thereak is secular growers and 14 for the deep cyclicals. Weighted tonly almost a four to one ratio in secular growers who do not need the economy to grow. If you cannot go to the store and buy something in store, you will buy it online. Irrespectivewing of the economy and that is what is propelling them. They are viewed as defensive stocks because they are secular growers with free cash flow. The question is at what price point, what evaluation can they start being defensive and become more aggressive. There are a number that i could say pretty easily. Vonnie absolutely. Do we continue to see greater income in equality and at some point to we see higher taxation which may or may not . Tobias the answer is yes. What the feds unintended consequences, people are making money today and people that lost their jobs, they are not. There will likely be something for higher income and wealthy people. Part of that is based on the election. Arounden comments capitalism and higher taxes on corporate and wealthier individuals to help those less fortunate and that has been the progressive tax penalty we have had for years. I would expect that you would see that coming next year. It is unlikely it will come immediately if mr. Trump won reelection. We put out reports and said that we think it is joe bidens to lose right now but i would not count out donald trump either because, particularly today where there is a lot of change in the discussion and usually recollections are about a referendum on the comet incumbent. What the Trump Campaign is trying to do changes into one around socialism versus capitalism or safety and security versus lawlessness. I dont think the Biden Campaign is going to sit there and take it, but that will be dependent on who winds, kind of with the tax policy dependent on who wins. Vonnie thank you so much for your time, we appreciate it. Now lets get to the first word news. Here is Mark Crumpton. Mark chinese diplomats in the u. S. Are facing new limits on travel and meetings. Partyompeo is moving restrictions on american diplomats and costs on for what the u. S. Says is unfair treatment. Secretary pompeo told reporters the administrators is demanding reciprocity. He said the restrictions would be lifted if china removes its rules. In japan, a top aide to shinzo abe has formally announced his bid to replace his boss. Powerful factions inside the Democratic Party and equate indicate that he has enough votes to win. He served as a back room enforcer during Prime Minister abes 8 years in power. Joe biden will outline his plan to reopen schools safely. The president ial nominee will call for a gradual reopening that follows Public Health guidelines. He will contrast that with President Trumps demand for resuming inperson classes quickly. More charges have been filed in the College Admissions scandal. A man in florida and massachusetts has been accused hisaying 200,000 to bribe childs way into an elite university. Nearly 60 people have been charged in the investigation. Last month Lori Loughlin and her husband were sentenced to prison time for putting half 1 million to get their daughters into the university of southern california. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Is Bloomberg Markets, i am vonnie quinn. Thatberg is reporting ackman approached airbnb about a merger. Airbnb reportedly rebuffing him for now seeing it prefers a traditional initial public offering. Airbnb is said to not have completely moved ruled out the merger. No discussions are currently underway according to sources. Endoke with ackman at the of july about a potential target in airbnb. Here is what he had to say. I have always admired the business. , a friend whorbnb makes a large amount of her income by renting out the ground floor of her brownstone and has had an amazing experience with the company. A very attractive, characteristic. We dont require that a company today is cash flow positive on an overall basis. We just require extremely economic attractive characteristics and we can predict with high confidence how those cash flows will grow over the longterm that is the kind of business we are looking at. Vonnie representatives for airbnb and square declining to comment. We will provide more details when we get them. Time for stock of the hour. Draftkings basketball legend uncle jordan is becoming an advisor and investor in the company. Scarlet fu has a look at what may be drawing him as an investor. Scarlet talk about star power. You look at the sale price and it does what you need to know. Michael jordan taking equity stake in draftkings in exchange for providing guidance and onice on how advice marketing. He will be a special advisor effective immediately. We dont know the size of the equity stake. He is the goat of basketball. Six titles, five awards, two olympic gold medals. If you look at draftkings, it is as much a star in the market as Michael Jordan was on the court. Analysts expect revenue to grow 45 to 745 Million Dollars in 2021 and two top 1 billion in 2022. That is tied to the legalization of sports gambling. The majority of states have made it legal or there is legislation in the works. Draftkings began trading publicly in april after a reverse merger and we have seen shares more than doubled during that time. This deal ups the ante on fan to come up with a similar name. Withneuil signed a deal mcafee. He is a sports analyst. He covers football and pro wrestling. Vonnie it is a new type of activist investor, when you get somebody like jordan involved. It will be fascinating to see what kind of strategy he comes up with and ideas of his own. He is majority owner of the charlotte hornets. Any potential conflicts of interest . Scarlet that is a good question. We know football attracts the most wagers, 75 of all sports that followed by the nba. According to the chicago tribune, this deal has the nbas approval. Michael jordan has a long history with gambling. He does not describe it as a problem, he caused a competition problem. He says he has never bet on nba games. Dance,watched the last you can see that he bet on golf, card games, cartoon races with guards,s, with security so he certainly is invested in it emotionally to some extent. Not clear whether that will be a problem down the road. Vonnie extraordinarily competitive. Scarlet, thank you so much. He is willing to change his strategies when necessary so that is interesting for the company that might need to depending on what happens with the future of sports. Time for look at some of the biggest business stories. United Airlines Cutting more than 15,000 jobs next month. They are responding to decline in demand for travel caused by the coronavirus. Octoberoughs take place 1. That is the expiration of a six month restriction on job cuts imposed as a condition for government aid. Orrida is cutting 1400 jobs about 5 of its workers in the u. S. As part of a reorganization to help the automaker reverse its declining fortunes. Florida ford is offering buyouts. First four your launch in a decade. There is a sign the labor market rebound remains gradual. U. S. Companies added fewer than expected jobs in markets. Byiness payrolls rose 428,000. Fewer than half of the median forecast. The government jobs report is out on friday. That is the latest Bloomberg Business flash. Ahead ford, what is the markets as cities face mounting deficits and bankruptcy potential even. This is bloomberg. This is Bloomberg Markets, i am vonnie quinn. Investing 2. 7 billion in the market along with insurance funds. The copresident talked about the new deal. Have a listen. We live in a world right now where the world is short long dated high quality yield and we had an opportunity with some great partners. We have been active for a decade plus and found an opportunity on and great critical assets through a Great Partnership of sourcing, analyzing and structuring solutions, we were able to solve their needs about capital and freeing up capital on some assets but also for our structuringsets, long dated capital is critical to us. It was a real winwin. We are excited to be doing business in the region with some great partners. That is the key to it in terms of great critical assets and long dated yield. And were in a 0 world will be here for a long time. What kind of yields have you been offered to get in a deal . A lot of our assets are investmentgrade. When you think about when we were able to structure, we have counterparty, a highquality counterparty and we did so in a return that is a nice premium to what one would get on an investmentgrade asset long duration. We are very excited when you look at the investmentgrade yield which are pretty scarce, we have a nice premium that is appropriate for both parties. Assets thatoup of you have done the deal, there are some pretty prime assets. Anymore key assets in there . The term we would use his poor infrastructure and critical assets the we would use is core critical assets. That is how we would characterize that. You talk about the challenge of yields. Politically,anging they are changing economically. E . At is the draw for ua we have had a Longstanding Partnership with a variety of investors in that region and around the globe. As you might know, we have a nice jb on large cap origination which got some of the city a few months ago. It is part of our ongoing critical level of dialogue. They had a need, we had a need and we were able to put something together. We feel very comfortable about the area and the region. Some great partners. Highquality counterparty in terms of ratings and fiscal stability. We are excited. Does this mean more in the region . Certainly we are excited. This is a well trodden path. Rsny of our wellrespected pee made nice investments. 5. 5aluation on this is billion. You are the lead. What portion are you in for on the 2. 7 billion . We are the lead investor in terms of apollo and affiliated balance sheets. We did bring some other wellregarded similar insurance and other investors around the globe in the transaction as well. Of partnersortium that the leadership are pleased to be partnering with. Was manus cranny. Joe obannon joe biden is giving new remarks right now. He is contrasting his ideas for reopening with those of president donald trump. 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For one thousand dollas off your walkin bath plus a free kohler bidet seat with purchase. Mark i am Mark Crumpton bloombergs first word news. President trump is campaigning in the battle current of North Carolina today. He won North Carolina by 3. 6 Percentage Points in 2016, but polls are showing a close race taking shape in a state that generates 15 electoral votes for the winter. Mike pence will follow wednesday in raleigh. Moderators have been chosen for the upcoming debates between President Trump in joe biden. Chris wallace will moderate the first debate on september 29. Steve scully will moderate the town meeting debate on a tober 15 in miami. On the october 50 debate in miami. Kristin welker will hold moderate the third debate. Health officials are signaling their may be a new phase in the countrys fight against coronavirus. New cases are declining in recent hotspots, but spiking in places like iowa and south dakota. Likeials say Events College or he openings into the sturgis motorcycle rally might be playing a key role. It also might be a sign americans are living their guards to down their guards down. Cases top 6 million. 75 years ago today, world war ii ended. Nightmare the global that left as many as 85 Million People dead. The department of Veterans Affairs said about 300,000 veterans were still alive. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Live from toronto, i am greg pennell. Vonnie i am vonnie quinn. We are joined by