Worsen, suspending imports of australian coal. Disney jumping a late trade on a management shakeup and a focus on streaming through a newmedia unit. We hear from the ceo. Check of howget a the markets are trading. We are seeing u. S. Futures coming online pretty much flat. We saw u. S. Stocks climbing to an almost sixweek high we had a rally. The s p 500 gaining ground. We also had financials pretty strong, gaining more than 1 ahead of earnings season. Jp morgan and citigroup reporting tomorrow. It was really about this years trade that really led the rally. The nasdaq composite gaining more than 2. 5 . Amazon soaring ahead of its prime day. Apple also jumping. The product unveiling but its price target was raised by rbc Capital Markets. Take a look at what oil is doing, reversing some of those losses it saw during the u. S. Session when it fell below 40 a barrel. Gulf operations restarting after hurricane delta. Sourcesention, libya saying we could see output there doubling within 10 days. To see how things are shaping up for the asian market, here is Sophie Kamaruddin in hong kong. Tuesday, futures. 2 gains for u. S. Stocks, looking to extend the rise. Take a look at the ndx. We are seeing a trek upward at a record high ahead of elections. The aussie dollar is holding above 72, but testing its 50 day line which may offer some resistance. Space, we have china trade data and a policy decision from indonesia. On. Currencies, as yuan fell the pbocs move but there could be a bounce back faster than what we saw in september 2017 given the yield differentials that exist. Offshore yuan is Holding Steady this morning. Switching out the chart, the korean yuan was an outlier, climbing to an april high indicating Risk Appetite. Looking to breach a key resistance level at 1150. The bulls will look for the decision. In hong kong, the storm warning signal has been raised to eight. That will cancel the premarket session if it is enforced between 7 a. M. And 9 a. M. Local time. The signal will likely be enforced most of tuesday. We will likely see the morning session for hong kong markets as well. Look at our take a top story in australia this morning. Can i has suspended china has suspended coal imports from australia. Paul allen has the story. No official announcement from either side. This is a move that was potentially well flagged in the months prior. What do we know . Paul china power stations and steel mills have received instruction to stop using Australia Coal. This is to people familiar with the matter. Ports in china told not to offload Australia Coal. This news has hit some of the likestocks in australia whitehaven which closed significantly lower yesterday. Nothing official yet from china. In australia, the trade minister says we are aware of the report and seeking more clarification. As you mentioned, that the first time coal has been targeted. In 2019, when australia banned huawei from the 5g buildout, coal was hit then with a demand not to unload australian coal. Angershen, weve had over calls of the inquiry over the origins of coronavirus. Agricultural products have been targeted. Now coal. China could easily replace the thermal coal imports from other imports and domestic supplies, but the coal that is used for steelmaking will be tougher. Australia accounts for half the imports and the price has been strong recently as well. Shery china also moving ahead with the prosecution of an australian writer who has been in detention for two years. Can we assume a political dimension to this . Paul it is very hard to ignore that conclusion. Although, there is not a direct link. This relates to the case of the writer that has been held in china since january 2019 on suspicion of spying. It was yesterday that the Foreign Ministry says he has been formally charged on allegations of espionage. That is pretty much all the detail we have. Australias Prime MinisterScott Morrison is calling for Greater Transparency in this case. The australian anchor for chinas englishlanguage broadcast being detained. Correspondents for the Australian Broadcasting corporation were forced to flee china last month. Yeah, it does appear to be another symptom of this ongoing political tension. Shery our paul allen in sydney. You can get more on the australiachina tensions and other stories to get your day going in todays edition of daybreak. It is also available on mobile in the bloomberg anywhere app. Lets get over to Karina Mitchell with the first word headlines. Karina President Trump is back on the campaign trail after testing negative for covid19, saying hes in great shape. He is in orlando at the start of four Straight Days of rallies which take him to pennsylvania, tuesday iowa wednesday, and then north carolina. Joe biden has a 12 point lead according to a Washington Post poll, with many voters unhappy about the president s handling of the coronavirus personally and for the nation. Meanwhile, a study of global mortality rates shows a proportion of americans dying from covid19 is the highest in the developed world. The American Medical Association says early on, the u. S. Death rate was lower than other hardhit countries including the u. K. , spain and the netherlands. As the country failed to accept Public Health measures, the number of fatalities soared. The congressional hearing into Supreme Court nominee judge Amy Coney Barrett will continue tuesday as republicans try to cement her confirmation before the election. Mondays session was primarily Opening Statements with some lawmakers participating remotely. Itirman Lindsey Graham says is their constitutional duty to confirm barrett as soon as possible. Bts is facingn criticism after one of its members commented on the korean war. The leader spoke of south koreas shared pain over the conflict in the 1950s and his remarks have angered social media users in china. Beijing backed the north and the three year war. Samsung has pulled bts branded devices from its website in china and jd. Com. Global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts. Im Karina Mitchell. This is bloomberg. Haidi . Haidi we will get more on chinas move to suspend Australia Coal purchases with tim buckley. He tells us what he thinks it was always going to happen. Next, u. S. Leading stocks higher. We get the market outlook. This is bloomberg. Haidi u. S. Stocks climb into an almost sixweek high, but our next guest says shes not sure investors are truly pricing in the impact of the failure to extend Coronavirus Relief under the cares act. Shery joining us as spotlight asset group chief Investment Officer shana sissel. Always great having you with us. This comes at a time where we are seeing the s p 500 valuations at record highs. This chart on the bloomberg showing forward p. E. s at the highest in almost two decades. How impactful will the coming earnings season be given that really every dollar below estimate could have such a big impact . Shana i think its very impactful in terms of where the market is going to go. I think the Second Quarter where we saw 84 of the s p 500 companies surprise on the upside is indicative of how low consensus estimates are. And maybe valuations are not really reflective of the earning power of these companies right now. Shery what about specific sectors within the markets . Because we have seen a lot of strength for semiconductors, we saw some dealmaking recently. Is this something that still plays into your portfolio . Shana so, i wish i could say fundamentals were really driving market editions, and the market returns, but its not. So, what weve seen and what we on,today is this, this risk risk off trade which is traditionally always been between fixed income and equities. But now, it is between growth and value. And a lot of that is due to all the stimulus thats in the market through the fed and looking at Overall Economic conditions with rates as low as they are, it really becomes about stability of earnings as well as longterm growth in a slow growth environment. So for me, i want to focus on finding opportunities in names where i think there is a tailwind. You mentioned semiconductors. They are some names in that space that are still trading at attractive valuations that do have that tailwind. Something like a cisco, in particular, it is a stock that is trading well below its peers on a valuation basis that has attractive growth and does have the tailwind of the overall push towards remote working, more online presence, cloud computing, all of those things can be a benefit to some of those sub industries and technology. Thats really what we are seeing. Haidi shana, given some of the positive, i guess, risk you could call for tech coming up. Prime day, going into the seasonal peak when it comes to retail. Apples new iphone. Is there risk for big tech than down . Shana i think there is risk on the upside. People are so focused on trying to compare what tech is doing today with tech in 19992000, where you had Technology Companies trading at basically no multiple because they have no earnings and saying thats what we are experiencing today when its not. These are Technology Companies that have strong earnings, probably the street is underestimating the earnings power. I think there is more upside opportunity in technology and i know i get a lot of flak from people saying i chase returns and i am following the crowd because this is whats worked but the Overall Economic conditions do favor these types of companies to surprise positively, more likely than surprising negatively in the next 12 to 18 months. Haidi what is your approach to hedging risk, a balanced but opportunistic portfolio . Shana my background and my area of expertise has always been in the alternative space, whether that be private funds were liquid funds. In the portfolio for my clients, we are focusing on using liquid alternatives as a way to hedge the portfolios. One of the etfs we have used quite a bit is btal. Neutral. S. Market antibeta fund. That has really played well in this environment. When risk is on and people are going to the value names, energy is outperforming and you see that. The fund does poorly. Today, it was up even though the market was up because it is a play on low volatility. That is what we are using as a hedge because fixed income really does not have a ton of upside when Interest Rates are read zero. Are at zero. Right, shana sissel, spotlight asset group, thank you so much for joining us. Coming up, President Trump testing negative for covid as he prepares to resume his campaign rallies. But virus cases elsewhere in red states are surging. The latest on the pandemic, next. This is bloomberg. Shery white House Doctors say President Trump has tested negative for covid19 as he returns to the campaign trail. It comes as the pandemic hits rural america. Lets get more from michelle cortez. The president will have at least four Straight Days of political events at a time where we are seeing covid19 surging in red states. Michelle the president s activity, going to some hotspots dakotas, isin, the bringing out his supporters. Often they dont want to wear masks. They are gathering in groups. A lot of chanting and cheering and that is rife for spreading the virus. The challenging these rule areas and small cities, the numbers are still pretty low but health care is very sparse so theres not a lot of hospitals, not a lot of ventilators. You can start seeing these cases really start to increase and there could be crises in areas where President Trump is most beloved. What are we seeing when it comes to the death rate versus the infection rate at the moment with these new waves of cases . Michelle the death rate is still significantly lower than it was earlier in the outbreak in the United States so when we are looking just at the u. S. , the numbers are lower than they were, although they are starting to creep up. The other thing is there has been some reports looking at how different areas are doing compared to each other. When you look at that particular metric, the United States has done worse than any other every other major economy that has a gdp at 25,000 a year or more, at least 5 million people. Even when youre looking at countries like sweden which did very little to control the outbreak, the mortality rate per 100,000 is higher. That has persisted even through may and june if you are looking from that time period onward, which accounts for allowing people to start doing a better job of caring for patients when they are in the hospital and getting people in early. All of these areas where the u. S. Should really have an advantage, none of that has actually played out in terms of saving lives. Shery we also have more virus surges across europe. We are also seeing the u. K. Again tightening restrictions. What do we know . Michelle in the u. K. , they are not going to a mediumhigh, and they are at a high level. In areas like liverpool, they are shutting everything down. Bars and restaurants, they dont want them open unless they are serving substantial meals. In other places like manchester, they dont want households gathering with others even outdoors in order to give the virus under control. They dont want to go to a full national lockdown, but they are taking very tight and aggressive measures in different areas to try to get the virus under control. Haidi michelle cortez, our Health Care Reporter in minneapolis. Disney is embarking on a major structural shakeup as it continues its push to become a global streaming giant and challenge netflix amid the virus outbreak. The company is merging its divisions into one big group, and focusing on its disney plus business. Told bloomberg earlier about the opportunities that lie ahead. Bob i think what we want to do is take a consumer first approach. We want the consumer to guide us on how they want to see content. We have the greatest franchises, the greatest executives steering the direction of our content, the greatest filmmakers. Consumers need to tell us how they want to enjoy our content. We are going to go ahead and take their cues. Right now, they are telling us that they want to see more content on disney plus and hulu. Caroline you are getting learnings from that. You just released mulan, direct to disney plus. You announced that soul, a new production, will navigate away from theaters. What is your gut telling you in the longer term . Is this something just in the pandemic or more and more will you be going straight to disney plus . Bob consumers will have their choices. The pandemic has affected the speed with which we are dealing with things. This move we made today would be happening with or without pandemic. We want consumers to have more choices. We want them to steer the ship. Obviously, we have a lot of great relationships with legacy distributors. Some of them are inside our own company. At the same time, we are going to take our cues from the future and continuing the road we have been on. Caroline this has been i am sure days, weeks, months in the making. Just last week we had an act activist investor basically calling you to focus more on content saying, invest your dividends, roll up together hulu, espn plus, disney plus into one. How much did you take that learning . Do you have an amount in your mind as to how much is going to be going on the making of content . Bob this has been in the works for many months. We see the trend is a first choice for consumers. As it pertains to our investors, we really like to hear from our investors and any thesis they want to forward. At the same time, we have to do what we believe is right for our business. In this case, we agree that direct to consumer is a great opportunity for the walt disney company. To do that, we will have to make huge increases in investment in our content. We are ready, willing and prepared to do that but i will not comment on any decision that our board will do in terms of a dividend going forward. Caroline what about the amount you are spending . Netflix spends about 15 billion a year on content. Are you looking at that magnitude . Bob i will not comment on any specific number but i will say we will have something new virtually every week on our platforms, across all of our franchises between pixar, disney, marvel, lucas. We have got some really great content. Our guests love it. There is so much story to be told, somebody avenues to do it in. How do we take those content Creation Centers inside the company, those franchises, and catalyze them across all our Distribution Channels but especially direct to consumer channels. Aroline you were previously chairman of disney parks, experiences, products, that mustve hurt a lot to have to announce 28,000 job cuts last month, a quarter of the themepark workforce. Talk to was how difficult it is to make such decisions at the moment and how optimistic you are about possibly returning to growth . Bob our cast members are the center of the magic at our parks. Every single castguest interaction is an opportunity for us to make magic. For us to make a decision like we did is certainly painful. We are looking forward to a more optimistic future where we can welcome our guests beyond a particular limit every day in the park, to keep that sixfoot social distancing, to open up our cruise ships. And to really move forward with our business so we can employ as many cast members as possible and bring the magic back to our guests. Shery Disney Ceo Bob Chapek speaking to caroline hyde. Lets get a quick check of the latest business flash headlines. Ford surged on optimism on its recent leadership shakeup and the redesign of the f150 truck. Shares climbed to an eightmonth high after benchmark raised its rating to buy from hold. The new team and good thirdquarter earnings will provide a boost. British airways is replacing its ceo weeks after highlevel changes at its parent company. Alex cruz is leaving the carrier having been passed over in january for the top job. He will be succeeded by sean doyle. Southwest aims to buff the industry trend of cutting flights by opening up in chicago and reviving its presence in houston. It sets up a clash with united and american as the Airline Travel demand edges up. Southwest left Bush International in 2005. Coming up, we will discuss the impact on Energy Markets, chinas australian coal ban with tim buckley. This is bloomberg. Hope it doesnt cost too much. I hope my insurance pays for it. Can you tell me how much this will be . [cashier] 67. Sorry. Wait, have you heard about goodrx . Goodrx finds free coupons to help you save up to 80 on your prescriptions. Wow, i had no idea. [announcer] goodrx, stop paying too much for your prescriptions. Karina you are watching daybreak australia. We begin with our top story. Hopes of a stimulus in washington are fading. How slim makers told not to it house lawmakers told not to expect any move this week. President trump is urging the gop to cut short the Supreme Court hearings to focus on vaulting the economy. Even if the two sides can bridge the differences, theres almost no chance of a vote before the election. Consumer inflation and india accelerated more than expected. Cpi rose 7. 3 from a year earlier. Led by higher food prices and more expensive fuel. Rising home prices helped push the rate to its highest level since january. The Modi Government announced measures worth more than 6 billion to stimulate consumer demand. North korea is launching a new work drive ahead of the january congress of the workers party. The 80 day Campaign Began with a massive rally in pyongyang just hours after a military parade showcased a new ballistic missile. Kim jongun was absent from the rally as leaders urged people to work harder to bolster the fragile economy. A similar drive was announced in 2016. A rare pink diamond on shell in hong kong ahead of an option that macy had fetched 40 million. The spirit of the roses set to go under the hammer in geneva next month. The gem is remarkable for its color and clarity, and should be in great demand as an alternative investment. In a rather workmanlike praise, it is being described as being wearable. Global news 24 hours a day on air and donned bloomberg. Quicktake im Karina Mitchell. This is bloomberg. Shery time now for morning calls as we count down to the asian trading day with sophie in hong kong. We are seeing Risk Appetite creeping back into the market. Strategists see ingredients coming together for a risk on break that would provide upside for the aussie yen cross if risk events unfold as markets hope. Some of the catalysts would be trump approving a large relief bill and a blue suite at election which will see stronger global growth. Anz betting the yen. 78, 40 and a stop at 75. 50. Haidi the aussie dollar forecasters expecting the rally to sustain. Why . Sophie that would be jason schenker. Hes been making calls on the aussie without stepping foot in the country for the last 16 years, relying instead on key Commodity Prices and factory activity. He is observing a cooling in iron ore prices and chinese manufacturing, which he says matter more than rba policy. So, those will weigh on the aussie dollar. He is penciling and 73 by yearend and 74 in early 2021. This morning, the aussie dollar Holding Around 72, testing shortterm resistance at the 50 day line. Haidi Sophie Kamaruddin in hong kong. Chinese data and Energy Providers have been told to stop enforcing australian coal. The move as part fears that camera could hit another hit. Lets take a closer look at the implications with tim buckley, the director of energy find in studies at the institute for energy, economics and financial analysis. Great to speak with you this morning. This move was pretty well flagged, and perhaps entirely unsurprising given chinas ambitious environmental goals. Tim yes. I probably would not link the environmental goals which are very ambitious and very topical, and are the absolute key focus. This is more of a geopolitical spat thats been ongoing for six or 12 months between australia and china, and china is depleting this spat according to the trade rumors. It is probable it will have a Material Impact on the shortterm on australian coal exporters. I would say it is a little more of that in terms of global importance to the coal sector. The bigger issue is what the president has announced with regards to his decarbonization strategy and nothing that changes everything. And i think that changes everything. Haidi to what extent is this representative of a death for the industry in this country . Tim very much so. In terms of the long term, i think china is absolutely the world leader in developing these technologies that are driving decarbonization strategy, driving industries of the future like electric vehicles, like solar, all of these decarbonization aspects and the supply chain that goes with it. I think china is certainly flagging, very clearly, they will move aggressively from demand for coal. In particular, thermal coal for our generation, but it is interesting that the rumor includes thermal coal exports from australia because one of the key topics globally and Energy Markets this year has been the emergence of hydrogen as a potential major new industry and will take a decade to occur but when it occurs, the singhas Biggest Issue is it will single Biggest Issue is what will affect the coal industry. It could actually replace coal on a 10, 20 year view. Nowe plans from the chinese have huge implications not just for the thermal coal exports, but also medium to longer term coal which is the far more valuable export and australia is the world leader in. Shery how much of this latest move by china do you contribute to politics given that we have seen in the past coal being a consistent target in trade tensions . Tim thats exactly right. Whenever the Chinese Government wants to put australia back in day,ox, at the end of the australia is a very small player and we need to understand our place. Normally, the Chinese Government targets thermal coal. Sometimes the rhetoric is far less than material than the reality so we dont know how significant this will be. China threatened this a year ago and we saw no Material Impact on the markets, but it could happen, it might not. At the end of the day, there are other customers. As china is highlighting, there are other suppliers. Coal is a commodity so i think the far bigger threat is the decarbonization plan president xi has announced. When i look at china, the biggest Solar Company in the world in china and its share price has gone up 300 this year. That suggests the Financial Markets are backing president xis decarbonization strategy and that will mean china will double down on its solar and wind and decarbonization investments overall. That becomes the longterm death note of the seaborne thermal coal market. Shery how much will it affect chinese steel makers that depend heavily on australian coal . Tim it could well impact, if it goes through, and that is a big if. At the end of the day, china is unlikely to Material Impact its own domestic companies. Australia exports 55 of the worlds seaborne coal. Usually, they hit us on the thermal coal side. They say they will hit us on both. I wouldnt expect that they will be shortly. Ae chinese economy is pulling little bit and china needs to focus absolutely, top priority on maintaining Economic Growth in china. The last thing they want to do is undermine their steel industry. If they cannot source from other markets, this measure could be temporary for australian coal. Coal, as it past for government policy . Is it is rumored it coming from trade sources. They were talking about this a year ago. We saw almost no impact. At the end of the day, covid had a huge impact on the market and i think the inevitable rise of deflationary renewable for any particular solar has a huge impact so it is worth bearing in mind coal prices is down 50 in the last few years and it is essentially rally from the lows below 50 u. S. Dollars and come up to the recent pricing around 58 for australian. Prices have improved a little bit. When i say improved, a month ago , every australian coal producer was losing money with anything they were exporting. Now they are probably operating even. The coal industry is in dire straits because of covid and because of the Global Economic slowdown and the inevitable rise of solar deflation which is the ultimate death note of the industry on a 10 or 20 year view. The International Energy agency coming out tonight with their world energy outlook. 2014. Ast its peak in thermal coal for Power Generation in 2018. We are now in the second Consecutive Year of decline. They now see that as the permanent trajectory. Now the only question is the rate of decline. Will it be down 1 or 5 . Shery tim buckley, it was great having your insight. Thank you very much latest on coal and the australian industry. Director of Energy Finance studies at the institute for energy, economics and financial analysis. Coming up, the big u. S. Banks are set to report. Whalen Global Advisor chairman chris whalen tells us what to expect. This is bloomberg. Haidi big u. S. Banks are preparing to report and not taking chances when it comes to potential loan losses. Analysts are expecting they will set aside another 10 billion for bad loans. Let us discuss that with whalen Global Advisors chairman chris whalen. Loan loss provisions have been steadily what weve been looking at since the start of this pandemic. Have conditions worsened that will see an even more conservative approach on this . This is a different crisis than 2008. Markingd ask me we were Mortgage Securities in all this stuff. This is basic credit on loans and bonds and commercial real estate. It is going to take time for the visibility oneal what the actual costs is going to be. You also have sectors like aircraft leases that are now arguably theres a lot of complexes that a year ago you have looked at and said that as a first rate asset and out it is barely in investment. There is work through this. The good news is it is not about the sector which is the irony. Ofyou know, theres a Lot Companies going public now. So it is a surreal situation. The independent mortgage firms need less, the opposite of banks. When banks worry about credit, Interest Rates fall, mortgage lenders make a lot of money. Haidi on the upside, we are also seeing a staving off when it comes to missed payments. That is a lot to do with the efforts of the fed, the stimulus payments. If another stimulus deal is not struck, does that stability start getting unwound . Chris i think it does in terms of unemployment. Certainly at the consumer level. The uptick of the existing programs has not been 100 so there are still resources there that are going unused. The big question mark is the Public Sector, the large cities. They are in deep trouble. The banks dont necessarily have a lot of exposure to them. Most of that is in the bond market. They certainly have exposure to local economies. Here in new york, multifamily housing, apartment buildings, all of that have seen in exodus of tenants. That implies a reevaluation of those buildings. Across the board, you will have landlords going to cities saying this building is worth half of what it was two years ago, i want my taxes reduced. Attack turn is going to the Real Foundation of cities which is property taxes and fees. The states make money on sales taxes but the localities really depend on property taxes and other fees to get the revenue and that is going to be enormous pressure. Im looking or hoping for something from congress or the fed on municipal finance, because i think the private sector will come back. But the Public Sector could be cut rather dramatically if we dont do something about finances for some of the cities. Chicago, new york, they would have to be restructured. Shery on the private sector side of things, how much positive could we expect on revenue fees . How m as have made a comeback this year. How much positive can you find not only m a fees, but ipo and Capital Market fees as well . Chris for the large u. S. Banks that have a Capital Market component, which is basically jp morgan, citi, goldman, morgan stanley, bank of america and Merrill Lynch it is certainly helpful, mna, obviously. You had a lot of activity with specialpurpose spacs. The bond market has been very busy. We are seeing record securities. Trilliono over 4 which is 100 yearoveryear change. Banks will do well. Unfortunately, most of the large u. S. Depositories pulled back in april. They are still providing institutional financing which is great. They are not making the kind of money they could be making in terms of originating and buying residential mortgages. The result this year will be off the scale. This will be the best year in the u. S. Mortgage market since 2004. Unfortunately, mr. Cooper, those sorts of firms which are very much in vogue now are going to be taking a lot of the share of the volume. Financingtill mortgage firms but they are not making mortgages themselves except through their own channels. Top five is u. S. Bank. I expect them because they dont have a wall street component. Youve got to remember, there is good and bad with a Capital Markets part of the business. City makes most of its money on its consumer book, credit cards and things like that but there is still a significant capital. Arket layer that is the thing. Shery we will have to leave it there but chris whalen, whalen Global Advisors chairman peter if you are away from the screen, you can always find indepth analysis and the days big newsmakers on Bloomberg Radio broadcasting live from our studio in hong kong. Softbank on the spac bandwagon. The vision fund teasing plans to form a Blank Check Company. We hear from the ceo. This is bloomberg. Shery Softbanks Vision Fund will outline plans for a Blank Check Company the next two weeks. It is seeking to capitalize on investor frenzy surrounding special purpose acquisition companys, or spacs. More than 100 spacs have raised over 40 billion on u. S. Stock exchanges. Softbank Investment Advisor ceo and the guggenheim global cio told bloomberg about the fundraising vehicle at the milken institutes virtual conference. Hasur problem is the spac to have the right Investment Opportunity in front of it. 15 billion deployed, four and nine months. Public and has gone up 10 times in chinese real estate companies. 75 billion valuation. Generally, we invest 10 billion. The problem is not to come up with financial or sources of capital. It is how do we deploy it right now . Anso, scott, is the spac Investment Vehicle whose time has come . Is it perhaps a little bit of Financial Engineering . Forperhaps, forgive me misinterpreting. It anjust that is Investment Vehicle whose time has come or is it merely a manifestation of speculative assets . Scott i think speculative excess, just like in other areas, is accelerating its growth. Is the spac as a vehicle ultimately going to be transformative for the Capital Market in a way that was similar to highyield bonds and became transformative for the Capital Market. There were lots of fits and starts in the early days. Building the business that he built. Of course, later on, there were a lot of abuses in highyield bonds, of companies that really shouldnt be borrowing money in the Capital Markets getting cash. The like this, you know, history of spacs is a pretty dismal one. Of all the spacs that have been done, over 70 of them are i think that has to do with two things. One is a lot of the money is coming out of the Retail Sector because investors like us would say, wait a minute, this guys going to dilute by 20 and is going got which to dilute us further. What is so special . Bill basically bought and is putting up capital out of his fund where he will make the money on it from his fund shareholders. I think as we devolve, and it becomes more of an institutional vehicle like bill ackman has done versus three guys in a garage with a dog deciding they should do it, i think the quality of the spacs will gain more respect ability with institutional investors. Let me add one final point. Scott put it rightly. Companies raise money from the Capital Markets is changing anyways with direct listing. Direct listing is being allowed to raise capital when you bypass the investment banks which is disruptive and great but why leave money on the table . Spacs will do that. Going tosaid, we are do it ourselves with our own capital as an Investment Vehicle. Inare going to put our money because the company, it is ideal for companies that are ready to go public five months from now. They want to do it with certainty maybe six months earlier. Those are the ones we invest in without em public it is telling the company we are a private investor but we are putting forward 500 million. Scott said, it will be an investment tool. Fund head and guggenheim global cio scott minder. Some live pictures of florida right now. You are looking at President Trump supporters in front of air force one. President trump now emerging from the plane. We know hes going to hold and make America Great again rally. He has at least four Straight Days of political events. He is expected to travel to pennsylvania, iowa and north carolina. This as we watched Trump Supporters now reading the president greeting the president in sanford, florida. He has just recovered from covid19. His doctor saying he has tested negative. Haidi of course, this comes as some of the red states showing the rise in the virus infection curve speed coming up, we will be speaking with Research Affiliate head of equities. The fastest growth coming out of asias emerging markets. 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