We get additional fiscal stimulus. Our guest is from morgan stanley. It feels like from the last 23 months, we have been turning the volume up and down and gone nowhere. Are we starting to change the track a little bit . Are we making progress around the fiscal talks . Only question that matters right now, Mitch Mcconnell does he have the votes to pass a 1. 8 trillion package . Think the Senate Majority leader needs all 53 senators to vote for this package. Choice is, the between getting something done ahead of the election or waiting until after the election seeing the outcome then making decisions about the stimulus package. Markets most importantly, the question is not necessarily whether it gets done ahead of the election but whether it gets done at all. Upsaw elements of that show in the minutes from earlier this made it clearfed that if there wasnt a stimulus in the next several months, if it gets done in a timely manner, the fed will be pleased as will the market. Jonathan couple of weeks ago, it was about a contested election and no stimulus. What underpinned the shift . Back,ouple of weeks around the time of the meeting, some stars aligned around that time. You had peak expectations for fed dovishness. Peak uncertainty around the outcome of the election and whether or not it would be contested. Then you also had peak doubt around fiscal policy at that time. Over the next couple of weeks, some of those ins uncertainties have moderated. I expect they will continue to moderate through the end of the year. That sets up markets for an interesting trade around the selection. Uncertainty passes us, we will see let me just say that there is plenty of cash to put to work. There is over 5 trillion in money market funds. Its not earning very much. That money is not going to stay in the money market funds very long especially when the uncertainty is reduced. Cast assuming that cash is a new mitigation strategy. Maybe thats where it stays. Point, money some will find its way into a variety of fixed income Asset Classes then eventually, it might seep into riskier Asset Classes. Treasuryy, devaluations are not attractive for any type of cash. We have been quite negative on the treasury market for the past several weeks. We think there are a couple of things that you can do against this. One of them is to put money into the german bund market where the supply market favors those over u. S. Treasuries. We are recommending that. Jonathan it is a trade that has become popular. Would you walk us through it . In terms of the supply dynamics, it is clear we are discussing another very big round of fiscal stimulus in the u. S. Almost certainly, that will allow the u. S. Treasury to increase coupon issuance. Even if we dont get a stimulus package ahead of the election, we are expecting the u. S. Treasury to increase coupon sizes in november. You have a supply tailwind to higher yields in the u. S. Opposite that, you have reduced supply in germany and other parts of euro area like italy. We remain bullish on recommending are [indiscernible] where we think the supply dynamic favorite higher yields in the u. K. As well as the u. S. Thethan lets deal with german bund treasury spread. Treasury yield has started to move back out. The range 5090 basis points. For me, what is interesting about the long end of the yield curve is when the cleveland fed starts to make friends and gets. Ccrued together on the fomc you have chop have some wood to before we get serious about the fomc pushing back on higher yield levels. Bear in mind, the fed thinks the neutral policy rate is at 2. 5 and right now, the 30 year long bond is 100 basis points below the longer line neutral rate. From the feds perspective, treasury yields are extremely low and very supportive of easier financial conditions. I would venture to say that if the 30 year long bond got above 2 , you start to see some eyebrows get raised at the fed. The 10year treasury yield which is almost 200 basis points below the fed longer run, you have to get well north of 1 before you started to hear a belt going off at the fed. Jonathan interesting stuff. That was our guest from morgan stanley. Time for the final spread the week ahead. Coming up, bond markets closing monday. Plus Christine Lagarde is speaking on tuesday. The imf promising its economic outlook. The fed vice chairman speaking on wednesday. On friday, u. S. Retail sales numbers. Us, we will see you next time. This was bloomberg real yield. Welcome to bloomberg markets. We will follow the latest headlines out of washington and other states including progress on a potential stimulus deal. President trump proposed a 1. 8 trillion stimulus package. Steven mnuchin will discuss it with nancy pelosi today. Plus, a stellar guest lineup. Blake griffin joins us to talk about his latest tech investment. Ahead to thek Supreme Court hearing that began next week. Lets get a quick check of the markets. We have been hearing from various logicians all morning. Optimistic, s p 500 but it is not the president announced he would be willing to reopen talks. We got a spike before 12 00. Since then, waiting for more movement. The offer is up to 1. 8 trillion. Its not clear if Mitch Mcconnell is on board. We will get to one of our white house correspondents. Who is in agreement with home . Is this anything more than an opening salvo . Now it seems the administration is in agreement with itself and nothing beyond that. What larry kudlow came out and mnuchint he and steven and the president had agreed on out 1. 8 trillion offer that they are going to take to nancy pelosi whose offer still stands at 2. 2 trillion. There is still a 400 billion gap. That leaves out the possibility that this would be something appetizing for Senate Republicans who have expressed even less appetite for a new round of stimulus. Ask why is Mitch Mcconnell being so coy . Says that his priority is one and it be to his benefit to allow a stimulus to happen . Was it would possibly benefit the vulnerable members in his conference, there are a number of other Senate Republicans who believe there has already been enough stimulus and they dont want to approve anymore. Mitch mcconnell isnt going to move ahead with something unless his party is unified. You might be wary of intrarepublican fighting leading up to the election in the u. S. In just three weeks. Do we have any idea on when andt all Nancy Pelosi Steven Mnuchin will speak . Where is the political will to get this done . It seems like it has been to the democrats advantage to not have anything go ahead. Mcconnell isnt on board, the only persons who seems to be interested in this is President Trump. We are expecting nancy pelosi and Steven Mnuchin to get together over the phone this afternoon to restart the talks. You mentioned something good which is it does not appear to be a major momentum toward a stimulus agreement before the election despite todays news. Saidays ago, the president he was pulling out of talks. Now, he is leaning back in with a bigger proposal. By pulling out of talks, he diminishes leverage with his own party. There are a lot of republicans who dont want any stimulus at all let alone 1. 8 trillion package. Republicans are asking where is the president s head . That is not the stage that you can be at if you want a big sweeping bipartisan deal. Something that would be unprecedented weeks before election. Vonnie there is confusion as to what will happen next week. The one thing we know that is going ahead is the hearings for Amy Coney Barrett. Will not travel this weekend. Willding to sources, he not travel until at least monday. He has been on social media at least nonstop. What can we anticipate next week from the president . Aides president and his are indicating he wants to get back on the road as early as next week. They are citing a letter approved by the white house physician saying the president could be cleared to travel as soon as saturday. We dont know a lot of key facts which is is he still contagious . Has he tested negative . When was his last negative test for he tested positive . There are still a lot of unknown questions about his health. The president and his aides are painting a rosy picture saying that he is trying to get back on the road possibly as soon as monday. Vonnie thank you. No doubt, the headlines will continue to come. Next, we will speak with professional basketball player Blake Griffin. We will talk to him about his investment in performance recovery company. This is bloomberg. Vonnie this is bloomberg markets. Hyperice is a maker of performance recovery products. From theot 48 million nba and nfl investment arm. Joining us is one of those early investors, Blake Griffin of the Detroit Pistons. Andthis particular company what do you see in terms of the size of the Recovery Market . When i first got involved, recovery was still a newer thing. As people get smarter and they learn more about performance, it trends more to recovery. The better you can recover, the harder you can work out, the better you can perform. That was the reason why i got in so early. I realized this was going to be a trend and this is how its going to happen. Workreally proud of the hyperice has done because they have taken the next step and pushed the envelope when it comes to recovery. Vonnie so many more athletes are getting hip to the idea that they should be involved in their own investments. You are going for a seat on the board. What do you want to accomplish . Really just to help move the company forward. It is already in great hands. Innovation and drive is the reason why i wanted to be involved from the beginning. For me, its about getting the experience and making sure i am available to help the company grow in whatever way possible. Vonnie it is already in 68 companies. Revenue are you looking at for the next five years . Are there other countries that this device could reach into . Were definitely looking to push the envelope. As far as numbers, those are things that are a little bit above what i am working on right now. Is int everybody that executive roles in that company and i am just there should support in whatever way i can. You are no stranger to injury. Have you used this device . Yes i use it almost every day. A lot of the products. Whether it is icing or using the [indiscernible] inhink whatever you need terms of recovery, we sort of have that in our possession now. That is the beauty of this company. It has grown and it has been able to reach Different Levels of recovery. Vonnie can i just ask you, there is so much of the rumor mill grinding out there. There is talk that you might end up at a Different Team very soon. Can you give us any details on what is going on in your life right now . Honestly, i have no clue. For now, i am a Detroit Pistons and when the season starts, i will be ready to play for them. I will let our front office and my agent deal with all that stuff. For me personally, its all about focusing on the team that ammann and thats the Detroit Pistons so thats my only focus. Vonnie i have to ask you who you think is going to win . The bubble has been a wonderful experiment for the nba in particular. Who is going to win . Ive got the lakers. On lebron not to bet james. He is playing extremely well and they have a great supporting cast. They have been a lot of fun to watch. I think its the lakers trophy to lose at this point. Vonnie for those putting money down, does it end tonight . I would say yes. Vonnie a little bit of a reaction here in the studio. Talk to me a little bit more about players and investment. Who do you take advice from when it comes to your money . I mean from the players and athletes, not people taking fees from you. Theres a lot of different guys. When i first came to the league, there were older guys who had figured out, a lot of people had heard the Horror Stories of athletes in general not just basque ballplayers but athletes making a lot of money then going broke. The next generation of players were much smarter. With rateuntless guys investments going on, a lot of stuff off the court. Its not hard to find great advice from my colleagues. You have to think about lebron and people like that. Is there anything that sticks in your mind, a moment that said this is something for me to remember down the line when i get these paychecks . Getting in early on. A lot of guys as athletes, i came to the nba at age 20. You have the idea in your mind you going to play forever. Its never too early to start setting the groundwork for your second career. That doesnt mean you dont care about basketball. I put everything i can into basketball. A great career in the nba is 15 years. Its smart to be forward thinking and make sure you have different avenues and Different Things set up. People, allger athletes are so young these days, do they come to you asking for advice . Best piece of advice is to make sure your desk you know where your money is going. That sounds simple, but its something that a lot of people overlook. Sure you have checks and balances, that you know where every account every penny is going and make sure you have an eye on. I have heard a lot of Horror Stories about guys who have lost a Million Dollars or 200,000 or whatever because they werent necessarily locked in on all of that. Really, staying on top of your money. Vonnie i have to ask you finally, coming to the end of the season, would you do it again in a bubble . Was it a good idea . Did you guys have fun . Was a great thing. They dider, the nba, in unbelievable job of putting this together and showing that it can be done and making sure the players were comfortable and healthy. Hopefully, this isnt a situation that we ever have to visit again. Being able toto play or not, it could definitely be done again. Vonnie thank you for joining us today on hyperice the company. Just to remind everybody, he called it for the lakers and it will happen tonight. You have to tune in to your games from 9 00 p. M. Thanks again to Blake Griffin of the Detroit Pistons. Up, a canada strategist. Lets look at the markets. We continue to get headlines out of washington and the promise of a conversation between nancy pelosi and Steven Mnuchin later today with congress apparently working all weekend on the next round of stimulus. President trump has offered 1. 8 chilean dollars. Lets see who takes him up on. This is bloomberg. Mark i am Mark Crumpton with bloombergs first word news. President trump will not be traveling this weekend. The president will not be Holding Events in florida and pennsylvania as he hoped. Sources tell bloomberg the president will not travel at least until monday. The white house is increasing its fiscal stimulus offer to Congressional Democrats to 1. 8 trillion. This comes three days after the president pulled his team from negotiations. Larry kudlow said mr. Trump had approved a revised economic treasuryoffer and that secretary Steven Mnuchin would be discussing that plan with nancy pelosi later today. It is unclear whether democrats who passed a 2. 2 trillion package in the house last week will accept the new offer. The Spanish Government is set to declare a state of emergency for madrid, ramping up its efforts to contain the spread of the coronavirus. About 40 of the countrys new cases are in the capital. A state of emergency would give the Prime Minister extraordinary powers to order restrictions on movement. Broadway fans will have to wait longer for shows to resume. No exact date has been determined, but broadway shows are offering refunds and exchanges for tickets purchased for shows through may 30. Broadway theaters abruptly closed on march 12, knocking out all shows. Broadway grossed 1. 8 billion last season and attracted a record 15 million people. Global news 24 hours a day on air and on quicktake powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Amanda welcome to bloomberg markets. Bloombergre joined by and bloomberg be in audiences. Cannot add more jobs than solid september employment report that shows the Unemployment Rate falling. The globalof consumer, we will look at expectations for Holiday Shopping this year with the International Council of Shopping Centers ceo. Plus, a preview of next weeks Supreme Court hearings. Nominee Amy Coney Barrett appears before the senate next week. We will discuss with the president of the National Womens law center. Are movingkets higher today. Not the bump you would expect based on renewed optimism around stimulus talks which leaves open the question of whether investors have already assumed the stimulus packages coming or are discounting what they are hearing until there is something official. Either way, we did get a bit of a move when President Trumps proxy larry kudlow made statements that were pro stimulus. We do know Speaker Nancy Pelosi will meet with Steven Mnuchin. There are doubts whether the stimulus package comes before the election. The decliners today are the gainers yesterday. Techs are holding their own. We are seeing some gains. Stimulus remains one of the big focal points abou