Very much with us. Is greg joining us davis. I want to push you into a realm of speculation about the president or google hope he has a speedy recovery along with the first lady walk me through how you processed this. Ultimately, how soon will we actually got some simple therapeutics and when will a vaccine be available and how will that translate into the economy and allowing businesses to get back to usual. Do you thinkt about the degree to which consumers will engage or disengage in the coming months, given what is playing out in europe and the spark spike in the United States . Gereg when we start to see start to see effective vaccines, you will see a broader reopening of the economy not just in the u. S. But until people get back to facetoface activity and trash traveling and leisure and hospitality, it will be a drag on the economy. We still think the recovery will be relatively slow here when you think about the implementation and availability of the vaccine, it will go to frontline workers first, probably those in nursing homes, and then the older populations. It will take time to trickle through the broader diverse. Jonathan what many people find difficult is getting to december 31 and looking out 12 months through 2021 and hopefully as the year develops, things get better. You have seen volatility into equities. The question weve explored week after week is what little is happening in the treasury market. I want to put together your world in fixed income with the equity side of the is this you have taken on. What do you lean into for that protection your end . Greg we always advocate for the client need for a balance portfolio. 10 year treasuries at 70 basis points and expected to stay well anchored, given the fact there are no signs of inflation right now or expected to develop over the course of the next couple of years. You have a Federal Reserve keeping Interest Rates at zero. We do not expect significant repricing to happen. Whenever you see a significant downward move, when we look at the months where there has been bought about performance in equity, bonds provide that equity to a portfolio. Although you might not get returns given where we are in rates but still provides balance for investors to have protection in their portfolios they can use to hopefully rebalance that equity we still believe there is an Important Role to be in the portfolio even at relatively low yields. Use balanceen you portfolio, the definition, has that changed from what it meant five or 10 years ago . Greg we still believe the of a balanced portfolio is a great way to start. It vice pres. Pence and individual risk tolerance in what the ultimate investing goals are. There has been speculate about how you could advance that given where we are in the Interest Rate environment what we saw a lot of investors do was buying out of bonds into bond like proxies, high dividend yielding stocks and things of that nature. Those are still equities and as you are doing that migration, youre increasing the overall risk level in your portfolio. We believe investors should still have a portion of their portfolio and the more defensive asset class in bonds and cash. Jonathan i want to talk about cash allocation. I wonder if things develop if they get better, how much that will get drawn down and put elsewhere and put to work elsewhere. Do you think that will be a key feature of markets the time being for people who dont have fieldworkte and comfortable giving of cash like look to the portfolio. Greg when youre in an environment where you have money market funds basically yielding zero and picking up 70 basis points in a 10 year treasury, you dont want to take on the additional risk. People are willing to forgive the potential for the loss of 70 basis points, but as investors become more confident in the economic recovery, they start seeing unemployment decline over time and once we have a vaccine that is widely available and lamented, i think you will see people come off the sidelines available in implemented, i think you will see people come off the sidelines. A lot of that was priced in and they couldve missed out on a good opportunity. We encourage our investors to say it fully invested but have of. Uate amount jonathan how would you view credit right now . A lot of people have talked being the sweet spot. How would you push it through credit right now . Greg we are still fans of investmentgrade credit as well as Higher Quality highyield. When you look at where valuations are, they are right around the median. If you look at the highyield space closest to the 60th percentile, we still believe highyield are relatively fair. For a lot of investors that want to pick up incremental yield relative to what is being offered in the treasury market and global government market, investmentgrade and high quality highyield offer a good place for folks to do that in an environment where we think the Federal Reserve and global Central Banks will still be very supportive of Economic Activity and supportive of the market. We believe that is a fair place for folks to take on additional risk. Do you think equity valuations have reached a run a little bit . Some may look at the growth segment and say we are looking at lofty levels even with the correction in the last months or so. What ones do you like at the moment . Greg when we look at equities, if you look where premiums are in the u. S. Relative to the International Markets and we index, the fair value what we see is the u. S. Markets are at the higher end of what we could would consider fair value. Because of the difference in valuations, what is being priced in, we believe the equity markets over the next decade will probably generate better returns than what you will find in the u. S. Markets. T is difficult internationals have underperformed in the last decade. But because of were starting valuations are, we believe the returns in the market will be greater in what we would see in the u. S. Markets. Jonathan we would like to get you on the show again. I appreciate catching up. Greg thanks a lot. Jonathan the week ahead, coming on mondayer coming from the United States. Fed jay powell speaking on wednesday. And a Vice President ial debate. On thursday, jobless claims. Weekend,go into the our thoughts are with the president and the first lady. For new york and london, this was bloomberg real yield. This is bloomberg. This is bloomberg. Im vonnie quinn. Welcome to bloomberg markets. President trump and the coronavirus diagnoses along with that of the first lady. We will speak with an emergency medical physician at Columbia University about the health risks the trump space. Meanwhile, slowing, highlighting the struggles of american workers. We will get a read on the numbers. Plus the plight of u. S. Restaurants. My conversation with eric ripert , and executive chef. Lets check on the markets. The s p 500, this is a twoday board. Lower at the opening this morning after President Trump tweeted out that his test returned positive. We knew there was a risk of that tested senior aide was a senior a tested positive. Is possibly having something to do with the stimulus talks which may or may not be ongoing. Nancy pelosi asked the u. S. Airlines American Airlines to hold off on firings for the moment. Thats get to dr. Dara kass of Columbia University. I will not ask you to talk about a patient that is not yours, but do let us know how long for do we need to watch other people becoming positive . Testing do weof need for joe biden for example to take to know that he didnt get infected perhaps that debate night or somewhere else . Dr. Kass is also more, cater than debate night and reaches further than the Vice President or chris wallace, who were in the debate many venue. At the seeing people rose garden for the Amy Coney Barrett announcement and there were balls will people testing positive, which puts the time about a week of incubation appropriate, meaning it may be true that everybody who was at that event should be in isolation for 14 days on that event last saturday and certainly from 14 days in quarantine from the nearest time they were near 70 positive. Senator mike of utah Just Announced he is also positive and we know he was with the Supreme Court nominee last tuesday. There will be a lot of people in quarantine for 14 days after their exposure. Vonnie isolation means you have been diagnosed in quarantine means you have been in touch with somebody diagnosed. Headline from the washington post, right now saying that Amy Coney Barrett has been diagnosed with covid19 this summer and has recovered. This is new information we are getting from the washington post. The nominee for justice Supreme Court has already had covered and recovered. If the president continues to have mild symptoms, does that automatically mean he will not be doing any kind of campaigning if he was listening to the advice of doctors. He would be on phone calls are interacting with anyone, even in a virtual way. Dr. Kass any patient who is positive, even the president , should be in isolation for 10 than theythe onset or tested positive. I can tell you as someone who has had the virus myself, it is exhausting, and the president think elderly and being obese is at risk for complications and really should make sure he takes care of himself. Although in isolation you can do things like zoom meetings and phone calls, it would be recommended that he take care of himself and give hims health give himself a chance to recover. Vonnie the Vice President has tested negative so far. Fori ask you if that is ok him or could you potentially test positive . Dr. Kass there may be a couple of days ago he was with the president under and unmasked. Is any time you are in a closed space indoors, unmasked, less than six feet for 15 minutes, you are considered a highrisk exposure. If the president and Vice PresidentWork Together in that environment two days ago, than the Vice President should be in quarantine for 14 days from that exposure to make sure he doesnt develop symptoms for a positive test. Vonnie joe biden is traveling to michigan today should he be . Dr. Kass it is unclear we dont know exactly the exposure risk to him. We know the podiums were 12 feet apart and they were unmasked and it would be up to his advisers and physicians knowing full well the exposure he had and knowing the Vice President regularly does wear a mask when he is moving from a singular space. The fact that he tested negative now, his visors will have to tell him his advisors will have to tell him what to do. Wouldwas exposed, we recommend that he quarantine. But it does not seem like he was exposed due to the distance of the podiums and that he was wearing a mask. Jonathan we appreciate all of that information. That was dr. Dara kass of Columbia University. We are going to be talking jobs. Eric ripert we are going to talk with we are going to talk with Eric Ripert Lebernardin executive chef and coowner. This is bloomberg. Covid19 will take a financial toll. There is already damage to young people that will take a decade to reverse. Vonnie the news of president continues toosis show efforts to contain the virus. I spoke with the coowner and executive chef of lebernardin for what out it means for restaurants. Bec we were very happy to able to reopen, even at 25 percent capacity. Our client was very happy. We have a very strict protocol to protect the clients and the team as well. It went really well. Were wanting to celebrate pee wee had a fantastic night. Jonathan the outlook from here are you getting booked up to the 25 capacity. Will it be a problem to try to give people confidence that it is safe to return to Indoor Dining . We are booked at the end of october at 25 capacity. Saturdaystuesday to and tonights we open with tworvations and two and nights we opened up reservations. You worked out what the margins will be for you now . Are they narrower . Eric we lose a little bit of money. We are not making profits. 25 efore we cannot sustain a very long time like that. We can survive a few months like this, after that, we have to go to 50 capacity. Because theo open, rates will be the same in january or march in terms of dealing with covid19 and also by having the restaurant closed, we lose money also, so why not open and start to train the well the understand protocol and someone. And so on. Restaurantsmany less well endowed will be able to see this through. What i see are a lot of restaurants that are closed now and do not look like they are going to reopen anytime soon. I believe it will be the vast majority of restaurants in new york city that will not be able to reopen. Jonathan that was chef eric ripert. F lebernardin lets get to scarlet fu. Scarlett an interesting night in markets. There is a history of october surprises in this one fit the bill. 1 00 a. M. Newore york time. President trumps tweet and the s p 500 sunk as much as 52 points within the first hour. The september jobs report was turned into an afterthought. Numbers disappointing on the heels of solid data from jobless claims. Teachers took another leg down futures took another leg down. Stocks ofe airline more than 1 and clearly a big diversions between big tech and the rest of the market as evidenced by the s p come up a 10th of 1 . That activity picking up in tech names. These tend to be longer options. Something to keep in mind as we see tech move. In the broader market, energies, industrials, and materials leading the way. Vonnie has been talked about the growth in the runoff up until today. Scarlet looking at a note from j. P. Morgan, he said that are not changing outlook for asset classes. It remains they were outperformed growth under any election out from. Airlines cashing in and continuing to see rotation into value stocks. We have nine weeks of influence into value stocks. There is no bleaker bigger cliche in 2020 or today, clearly nobody knows anything right now as the white house undertakes the mother of all Contact Tracing. Along with thely 2020 average good when you look at the vix futures, investors pricing elevated volatility passed november 3. We know that even before his diagnosis, President Trump hinted he would perhaps delay the election or challenge the outcome. There is a precedence for stocks falling on a long, drawnout conclusion. The s p lost 10 around that time. In. Ie im going to break i push eight the update. The Vice President has cut his voter events today in michigan. That is the latest on the campaign trail. Mike pence decided not to complete the events today. More,. This is bloomberg. Mark i am Mark Crumpton with first word news. What house chief of staff mark meadows says President Trump very energetic with mild symptoms from the coronavirus. Meadows says he himself has tested negative along with other close trump ag aids including jared kushner. Close trump aids including jared kushner. The American People can rest assured that we have a president that is on the job and will remain on the job, and im optimistic that he will have a quick and speedy recovery. Mark First Lady Melania Trump wrote in a tweet that she has mild symptoms but overall is feeling good. She was also diagnosed with coronavirus. Senate minority leader Chuck Schumer is calling on the white house to immediately begin Contact Tracing after the confirmed Coronavirus Infections of the president and first lady. Senator schumer is also urging thorough testing and isolation for those who were exposed to the risk of infection. He says those guidelines should be followed for all white house Staff Members who came into contact with the president and eight hope hicks, also confirmed with the coronavirus. Following presence up a trump; to show up at the polls to watch the party plans to use 50,000 volunteers in that President Trump is actively encouraging supporters to sign up to be a trump election poll watcher. As part of the army for trump. That has raised concerns about potential voter intimidation or clashes at pulling sites. Secretary of state mike pompeo is promising washington will remain engaged in the falklands were china and russia have been gaining clinical and economic influence. Secretary pompeo spoke in the croatian adriatic sea resort on the last leg of his European Tour that also included stops in greece, italy, and the vatican. He praised the white house economic agreement last month between serbia and its breakaway former province of kosovo. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i am markountries, crumpton. This is bloomberg. Amanda i am amanda lang. This is bloomberg markets. Vonnie quinn in new york city. We will have a guest in a few moments about what could be a stolen labor economy. President trumps covid diagnoses meanwhile will be speaking will with tim obrien about his latest column and how the president failed to protect the country, and then failed to protect himself. The jolt of volatility following the revelation by twitter overnight that he tested positive. We will speak with brian belski. A couple more headlines to tell you about. Two more covid positive diagnoses, according to cnn. One white house staffer and one journalist. As we know, there are many tests taking place today. Cnn is reporting we h