Michael mckee is here to help us break it down. Michael good news for those who hope the economy is recovering quickly. Atufacturing pmi comes in 54. 2, and the ism forecast of 53. 6. Take a look at the manufacturing new orders index, up to 61. 5 from 56. 4. At 62. 1,ction number from 57. 3. So a big increase in new orders and production that hopefully will keep the economy going. We heard Robert Kaplan this morning saying he thought things had turned around and slowed down. Manufacturers at least through part of july sam some good news part of july seeing some good news. The one thing we dont have is payroll friday, the ism employment number still comes in pretty weak. From 42. 1. If you incorporate that into your models, it might weaken a little bit what people are expecting for friday. Alix i am glad you said that because in europe, part of the conversation after the positive pmi was the employment and jobs picture doesnt look so good, but we are not quite there yet. I am wondering when we will get a read on that. Michael that is going to be hard to know at this point because companies seem to be doing as much as they can without adding more people because they are not sure what is going to happen. Of course, restaurants have to have people. Anecdotally, we are hearing they all got laid off again in these states that then closed down restaurants and bars. Also, these are sentiment indexes, so they reflect the change from month to month. Maybe july was better than june, but it doesnt mean you add a lot more people. That is one reason we dont have a good handle on friday. Alix and a great interview with kaplan. Nice job. Staying with the economy, more buyers returning to the Housing Market as many escape the city life or the suburbs. We spoke to sheryl palmer, Taylor Morrison ceo, for her take on the housing industry. Supply is very limited today, and it is limited both on the resale in the new home market. Isittle bit of the challenge making sure we have the demand. Alix with us now is ivan kaufman, Arbor Realty Trust ceo. I wanted to start a little broader here because you get frequency reads like today, with the pmi and ism in the u. S. , and yet you still have 17 million, 30 Million People on unemployment. How do these two things play out in your world . Ivan we are mostly only multifamily side and singlefamily build to rent. With the extension of the c. A. R. E. S. Act, people have enough money to pay rent. We are watching very closely. But as you are aware, people have been paying their rent on the multifamily side. Despite this dislocation, it has been an extremely great performing asset. Alix which surprised everybody. I wonder, if we dont get 600 extension of the Unemployment Benefits, when do you think we see the rent deferrals trickle down to you . Ivan i think it could be fairly immediate. Come the fall, theres a large amount of concern. You have to watch that, as well as covid. People go back to work. You have very high unemployment right now, above 10 . If people start to come back to this gets under control, that could possibly mitigate the said equation the situation, but those factors we are watching extremely closely. Alix give us a sense in the area of demographics because the flare up a couple weeks ago in the sun belt states, now new jersey is getting hit again, the rhetoric a couple weeks ago was flee the cities, go to the suburbs. The rhetoric had been flee new york, go to florida. What are you seeing now . Ivan it is clear, all the urban areas are of great concern. People are not going back into cities. Homeownership is the highest right now, approaching 68 , the highest rate since prior to the great recession, so the trend started before covid, and now it has accelerated. People are moving out of the cities for the social factor, the school factor. All of this is leading to be moving to suburbs. Even people renting homes in suburbs is up, so that is completely trend. Alix in a big way. My friend listed her apartment in new york, and its old and like, five days. That brings us to supply. Is there any inventory for all of that movement . Ivan first of all, it sounds like your friend got very lucky. Alix she did. Ivan people are not shopping for apartments, but the supply is very limited in the suburbs. There are not enough homes. I think you will see some price depreciation on homes some price appreciation on homes. You are also seeing price appreciation on rental of home. If you have to sell, youre going to do ok. If you are looking for a home, the inventory is very limited right now. Alix that brings us to the commercial world. You are mostly in mortgage, but for the commercial land, how bad is it . Ivan let me give you a little perspective. The industry as a 14 trillion industry, and there are three Asset Classes doing extra nearly well. Rental, as well as industrial. 60 of the Asset Classes are performing exceptional. Clearly, the other Asset Classes are hit by covid or by other factors. You have hospitality suffering and retail suffering, and then you have offices in the middle. There are certain benefits on the office side. Right now there is a boom in offices in the suburbs. We will see what happens in the urban areas. That until the next six to 12 months. Alix the narrative is, forget it. No one is going to go back to work in an office building. But as the narrative a little bit nuanced . Satellite offices, for example, in areas of new jersey so some of them wont have to come into new york. How quickly will that shift . Ivan i think it is too early to tell. You have so many different opinions. Lets not think in the short term. Lets not think about what is going to happen in the next 12 months. Nobody is sure what is going to happen until the virus gets under control. There are a lot of counterbalancing issues. Everybody is saying theres going to be less offices, so you need more space. People are saying not many people are going to go back to the city. I think it is going to be a mixed bag, but clearly there are a lot of people evaluating urban offices and suburban satellites. There will be some shift in behavior, but i dont believe it is going to be as dramatic as people say it is going to be. Alix really interesting perspective. Appreciate it, ivan. Thank you very much. Just recapping that data for you , ism manufacturing coming in strongerthanexpected at 54 to. New orders really at 54 point had at 54. 2. Unemployment coming in sequentially higher, but that remains to be seen Going Forward is that was weaker within the european pmis. We will be breaking that down within the next hour. Coming up right here, stimulus crunch time. What am i saying . Wrapped work on the floor on friday, and they are trying to get a deal done by the end of this week. We will talk to our next guest, who is optimistic we will get a deal, isaac boltansky, compass put research. This is bloomberg. Alix live from new york, im alix steel. This is bloomberg markets. Just 90 days away from the u. S. President ial election, the stakes are getting higher every day. Bloomberg senior markets editor scarlet fu is looking at how the markets will be a factor in november. Scarlet we know President Trump was counting on a strong economy, reflected by a booming stock market, to make his case for a second term. If you look at the s p 500, it has gained more than 50 since he was allete since he was elected. It is almost recovered from the covid selloff completely. Chart, he is a olling at about 40 in 2020, but if we learned anything from 2016, theres a huge gap between what people tell pollsters and what they actually do in the security and safety of their ballot box or polling station. It is the same in the economy. People say one thing, and do something else. President trump was able to get elected last time with a 43 rating. Maybe markets dont matter. But maybe they do. Showsata shows history that Market Performance matters. According to litan, this to clifton, if the s p rises from e on out, the income i the incumbent usually wins. The opposition wins. According to dan clifton, some tipton,ifth dan september 5 is around the time that it becomes clear that the opposition will win. It certainly feels like President Trump is laying the groundwork for legally challenging election outcome. He has questions the safety of mailin votes. He tweeted last week suggesting maybe the election be delayed, even though he doesnt have the constitutional power to do so. The vix curve shows a spike in volatility in october. Incalms down a little bit november, and then picks up in december, possibly reflecting of a contested election. Alix stimulus talks in dcr continuing today ndc arcing in d. C. Are continuing today. Treasury secretary Steven Mnuchin is raising the alarm over growing debt. Sec. Mnuchin we have to balance. Theres obviously a need to support workers, support the economy. People who, through no fault of their own, or shut down because of this terrible disease. On the other hand, we have to be careful about not piling on enormous an ounce of debt for future generations. Alix isaac boltansky, Compass Point director of research, is bullish despite the hold up. Is your bullishness eroding at all here . Isaac good morning. I am reminded of the line that senator kaine used to say, which is senator mccain used to say, which is it is always darkest before it is pitch black. My sense is that these negotiations are probably going to have to take one more step back before they can move forward. But the endgame is the same. There will be a deal, and i think there is going to be a deal because we have this unique, nation of economic necessity, political potency as the election draws near, and the health realities on the ground. The form ofhat take unilateral action by the president . Do a payroll tax cut on your own. Is that what we are going to see . I thinkhink isaac the unilateral administrative action is just part of a broader negotiating tactic. Even secretary mnuchins comments regarding a oneweek push for an extension is just part of the negotiating leverage phase of these talks, which is why we probably up to take on step back for we can move forward. Unilateral action would be incredibly difficult. It wouldnt have the same Economic Impact as things that we are already starting to see some consensus when it comes to a second round of pvp of ppp money, for example. Theres already consensus, and you need congress for those bigticket items. Alix what does a step back look like . For the markets, based on the price action today, you are right. But what does the step back look like . Isaac i cant tell you exact a what it is going to be, whether it is going to be a tweet from the president or a bad jobs number at the end of the week. I dont know exactly what it is going to look like. I just think negotiators need a little bit of an external push before they can get over that final hump because there are big hurdles they got to clear. That is number one, the unemployment insurance, and number two, state and local funding. There are, tos there are answers to both of those. State and local funding, there trillion spread between democrats and republicans at the moment, and i think you can split the difference on that. I just feel as though negotiators in washington need a little bit of a push. Dont know what that is going to look like, but when it comes, i hope Market Participants are cognizant of the fact that there will be a deal at the end of the day, no matter how bad a civil headline might be. Alix the others and we have learned is this aggressive push against china as well. You had mike pompeo over the weekend saying President Trump has had enough, and we are going to fix it, talking about Tech Companies and chinese exposure here. We have seen the issue with tiktok and microsoft taking it over or not. What do you make of this . Isaac i think there are two stories. The first is whether microsoft will be able to craft a deal for ok. Talk for tikt i think the answer is yes. They are in direct contact with the white house. Their most recent statement had effusiveaise had praise for the president. I add that to the fact that the president is a dealmaker in his mind, so i think that, within the context of him having a zerosum geopolitical and business take on the world, would lead to him being very comfortable with a microsoft deal if it is crafted properly. Alix what do you make of the whole push to look into other Chinese Companies . Is that real, or is that just rhetoric . Isaac i think this is the new sides of theth ideological spectrum in the United States. This episode is really just a chapter in the bigger book about the decoupling of china and america. I can give you a number of different examples, chief of which among my clients is the most recent legislation that would ban Chinese Companies from being listed domestically if they dont meet auditing requirements. There are a number of different chapters, all put together that come to the same story, which is the study decoupling of the two largest economies in the world. Alix what i was also interested over the weekend, kashkari talking about how he thinks another lockdown would need to happen because we just cant keep on spending this much. Shut it down, and if he desires. We are also going to get treasury refunding announcements today. How much can we really afford to issue to support the economy . What do you think is going to happen . Isaac while we are hearing some talk about deficits, my line here is simple. Deficit hawks are still an endangered species on capitol hill, so i think that when push comes to shove, congress will spend when it needs to. Mr. Kashkaris broader point is a right one. Theres only so much the fed can do. Theres only so much congress can do. The fed is not economically omnipotent. As much money as we threw at this problem, it is still first and foremost a health crisis. Someone till we address that, i cannot repercussions will not be satisfied. Alix so for downgrading the outlook friday didnt seem to make you blink that much . Isaac we are not there yet. This is a conversation for the other side of the crisis, and i think that is where most of d. C. Is at the moment. I think they will continue to write the checks until we get to the other side of the health crisis. Alix always great to catch up with you. Really appreciate it. As we were speaking, i should point out that House Speaker nancy pelosi said the 600 extra unemployment benefit was very important during the emergency, that they will be what civil on that boost if unemployment goes down, so it is an automatic stabilizer tying that to Economic Data like the Unemployment Rate, so we will keep you updated if any headlines crossed. Staying on this conversation, starbucks chairman emeritus Howard Schultz is also pitching in, and sent a letter to Congress Asking for help for americas mall businesses. The letter was signed by more than 100 former and current ceos. They warn that Business Owners face potential financial ruin. They say that congress should provide guaranteed loans that are good for more than just the next two to three months, and the hardest hit businesses should be eligible for partial loan forgiveness, and the money must go to all Small Businesses in need, especially those run by people of color. More next. This is bloomberg. Ritika it is time for the Bloomberg Business flash. Im ritika gupta. Producer biggest meat had higher costs associated with protecting workers from the coronavirus, but that was more than offset by surging meat. Ceo. Named its new the parent of snapchat has landed a deal with top music him panisse to add songs to videos. Music companies to add songs to videos. It is a new promotional tool for the music industry. Shares of Security System provider adt are soaring. Google is spending 450 million to buy a 6. 6 stake. The two Companies Plan to create the next generation of smart home security. Googles nest hardware google brings its nest learning hardware nest hardware and machine learning. Alix the japanese owner of 7eleven Convenience Stores is betting and expanded u. S. Footprint will deliver growth in the midst of a pandemic. They agreed to by Marathon Speedway gas stations for 21 billion. Also whats important is what it actually means for marathon, which has quite high leverage within the market at 4. 4 times ebitda. It could be good shortterm, but longerterm, perhaps losing a real stable source of cash with the virus hitting gasoline demand. Coming up, we are 2 3 of the way through u. S. Earnings season. Estimize founder and ceo. This is bloomberg. You say the customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept. 5g, everybody is talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item, corner offices for everyone. We just have to make more corners in this building. Chad . Your wireless, your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch to Xfinity Mobile and save up to four hundred dollars a year on your wireless bill. Plus, get two hundred dollars off when you buy an eligible phone. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Alix live from new york, im alix steel. This is bloomberg markets. Earnings results trickling in this morning. Lets break down where we are with leigh drogen, estimize founder and ceo. So far, the busiest two weeks behind us, was your take so far on earnings season . Leigh coming in, i think the theme was largely the mix of Consumer Spending obviously having gone online versus offline. Fi andand shop a. Hopifys and amazons was that going to be sticky this quarter and in future quarters, or were we going to see a reversion in consumer behavior, which would mean maybe the multiples for those tech stocks were too high . That is not what we have seen. We saw margins for companies becausezon go crazy that additional revenue associated with the behavior has all just gone to the bottom line. We dont see that changing anytime soon because now in the out quarters, we are seeing estimates continue to rise for future quarters for those same names instead of coming back down to on trend growth from before the pandemic. If those revenue and eps growth rates stay elevated, the multiples for these stocks may be reasonable. Alix such a great point, that we are not going back to normal in 2021, but actually increasing their estimates. Does the virus or what happens in d. C. Over the next week or so change any of that in your estimate . Leigh it will. Obviously, a lot of this is dependent on the fact that consumer pocketbooks have been pretty flush because of all of the transfer payments. If we rip those away from the market, it doesnt matter whether it is online or offline. You will see all of those numbers fall apart. Some will be stickier than others, but on the whole, it is not going to be a good story. The other thing that has happened is we are at historically high rates for the market, so the estimize consensus, in a normal quarter,bout 53 will be eps numbers about 54 will be wall street numbers. We have crazy hyphae rates. Obviously, especially on the eps are, those growth margins low. To down too alix the other sides of the margins are cost cuts and utilization optimization. Do you get a sense of which industries are barebones at this point . They have nowhere else to cut their costs, and they need that underlying growth . Leigh industrials is the one we worry about the most because theres really nowhere else left to go. On the good side, obviously in terms of growth margins, health care has been incredible, especially the insurers. Unlike some of the auto insurers, they are not getting back the money associated with the payments that didnt get used in terms of health care this quarter. Seeing,ctually interestingly, in the out quarters, the expectations for the margins associated with those Companies Continue to be elevated, meaning that analysts are expecting that the utilization of health care in the out quarters wont be as high as it normally is, and that continues along the trend of the virus isnt going away, and we are kind of stuck with this new normal for a while. We are not getting back to the way things were for a while. Alix what i was also struck with is if i take a look at the factor waking factor weighting for last month, those that did well were ones that had high leverage. You see today, bond market white of an off the board. Ccc has been swept up in the rally as well. What have we learned from companies on Conference Calls about how they are taking their debt . Fed has basically backstopped everything. Theres a bit of a crazy environment right now going on. The market is obviously giving the benefit of the doubt to companies who want to lever up, and we have seen Companies Issue a considerable amount of debt because of prices. Until the market starts to punish that behavior, i dont think we are going to see anything different. Alix what about the dollar, and how companies are handling what is happening with the dollar and the volatility we may see . The dollar really getting killed in the last month. Leigh the companies that export , obviously the falling dollar is helpful here. Say that theyould travel and entertainment stuff overseas would be the stuff that would be getting hit, but then again, that has all been crushed anyway. That component of the numbers doesnt really factor in as much. Tech,uff especially in where there is a considerable amount of overseas revenue, that is good, obviously. Alix it is like one more catalyst for tech. I cant let you go without asking your response on microsoft and the tiktok thing. You had navarro saying Microsoft Might not be a good suitors. Others saying it makes a lot of sense. What do you make of all about . Make of all of that . Leigh oh god. It is a mess. It is a ridiculous football right now, considering the platform a couple of years ago, and it is now front and center. Microsoft has not been particularly successful in the social media space, but they have made some shrewd acquisitions. Linkedin has been a success. If they can get this thing for what seems like an undervalued if the billion dollars relative to its size and adoption, i ofieve look, in terms lyrically, i think hes betting that he wont have to deal with this administration past six months from now. Alix i also have to wonder if microsoft can make a successful social media platforms like, literally, can they . Leigh on their own, definitely not. But they have managed their acquisitions really well. I think if they can get this done at 50 billion, investors will reward them because he is shown a great track record of being able to integrate these things. Alix always great to catch up with you. Leigh drogen, estimize founder and ceo. Coming up, for some companies, it is smooth sailing in the face of the pandemic. Ceo of theak to the leading manufacturer of boats and sea equipment. This is bloomberg. Alix ritika lets check in on the first word news. The white house is exploring whether President Trump can act on a virus relief plan without the approval of congress. On friday. Pired democrats and republicans have been unable to reach an agreement on a new stimulus package. Microsoft is trying to salvage a deal to buy the u. S. Operations of tiktok. The ceo spoke to President Trump about how to secure the administrations blessing to by the popular but besieged chinese music video app. Bloomberg has learned the white house has given the company 45 days to hash out a deal. If youre released by the People Research lab says in regions that benefit less from air conditioning, protective infrastructure, and eldercare will die from extreme heat at a much higher rate. 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. Alix thanks so much. Friday, the u. S. Jobs report is the main event of the week. Federal reserve bank of dallas president Robert Kaplan spoke with michael mckee, and he is still concerned. It is still our view that we will contract for the year at about 4. 5 to 5 . It has been our view after a very sharp decline in the Second Quarter. We had a very healthy rebound in the third and fourth. I think that rebound is more ,uted in the United States now and it has caused me to think that the Unemployment Rate, if we dont do a better job managing the virus, the Unemployment Rate is likely to be above 9 , between 9 and 10 . So we have moved up our unemployment forecast, and so i think weve got to rebound, but it is much more muted than it was. If we dont do a better job managing the virus, we are going to have lower growth and a higher Unemployment Rate, so i have been spending a lot of my time talking more about the anything else because it is so critical to the recovery. Michael the extra unemployment bonus and Eviction Moratorium are gone now. Has your staff modeled the impact of that on the economy . Should we expect a wave of defaults that might affect credit markets . We have looked at it. One of the things that is unusual about this downturn that we just had is incomes have stayed relatively solid, and a big part of the reason is these Unemployment Benefits. Where normally in a downturn you see a drop in incomes, we havent seen that here. It is still my view that in some form, we will get an extension of Unemployment Benefits. I am quite hopeful that that will continue. But if it didnt, you would see a further weakening in the economy, and particular because consumers wouldnt have as much money in their pocket to spend. Michael any Business People telling you that 600 bonus was keeping people from coming back to the labor force . A lot of Business People were telling me that, honestly. They were telling me that it was challenging to hire people. Weve looked at a number of studies. We have done our own work. We dont see it as much in the data, but i can tell you, i am hearing it from Business People. Is,hatever the right answer i think you still are going to need to see extension of unemployment. It may be restructured from the 600, but i think it is important we see an extension of it. I think the increased incomes, while it may have made it hard for certain individual businesses to hire, it helped create jobs because it has helped bolster Consumer Spending. So the net effect still has probably been positive the economy and employment. Alix that was Robert Kaplan speaking to Bloomberg Michael mckee. One area that may have actually added jobs in the boating industry. Increased incomes, lack of travel, going on a boat maybe one way to go. Brunswick is one of the leading manufacturers of votes in the u. S. , and is seeing of boats in the u. S. , and is seeing increased sales around the world. Ceo David Foulkes joins us now. I want to get perspective on who is buying and renting your boats, and where. David thank you for having me. The Second Quarter demand started off fairly depressed, but then accelerated really rapidly through may. It was very strong in june. June is a big month anyway, but it was exceptionally strong. That strength and momentum has carried on into july. In terms of who is buying the boats, in june, about 40 of our boats were purchased by people new to boating, which obviously is significantly higher than normal. Some of it was catch up sales. Those new to boating people tend to be younger, tend to have larger families, and more female. Alix that is really interesting. Did you get a feel of why . Is it sort of like they are buying it because they cant go do anything else, or is this a structural shift in how people are looking at time of . David Outdoor Activities are clearly benefiting, and boating can be completed with social distancing. Boatan boat alone, you can with family or extended family. So i can get fits well in this particular environment. But those new boaters hopefully will stay with boating for a long time, so we expect to have an uplift over time. Alix the video we are playing mix it look very appealing. How much do you sell these four, and how many do you have . Do you have enough to meet all of the demand . David we sell a lot of different types of boats. We have a big portfolio, everything from 16 to 18 foot aluminum boats, up to big boston whalers more than 40 feet. The average cost of a boat we sell is about 14,000, but the spread is quite wide. We have seen that uplift across the board. In terms of field inventory, it is very low. Less than half what it should be this time of year. Pipelines are really depleted. We are hiring as fast as we can to build product, but it will take us some time, at least through this year and probably most of next, to fully rebuild the pipelines. Alix aside from having the actual people to build the boats , where else in your manufacturing chain to you see this . David we were down in the early part of april, but came up again and have really accelerated. The rampup has been extremely strong. I couldnt be happier with our operations and supply chain team. Obviously with our suppliers and channel partners. I would say right now, some suppliers are struggling to keep up with the ramp, but in general, it is not holding us back. Alix when this is all over, lets fastforward six months when trouble opens up a little bit, how sticky are you hearing these consumers actually are . David i think they will be pretty sticky. Boating is a great experience, and once you are in it, part of our job is to give people a great experience. But i think with the breadth of experience we can offer, i hope people will stay, and we will be doing everything we can to help them stay in. We have other ways for people to access boating as well beyond freedom boat club, the biggest boat club in the nation. 138 different locations where people can go and use a boat without actually owning it. So lots of different ways to access boating across purchase and shared access options. Alix tell me more about that. Is it like a timeshare option for boats . David not quite. It is really like a club. You get access to a fleet of onts, and you can book them an app. You can book them for a day or multiple days. You can book them in advance. It is so large that we have reciprocal membership arrangement. If you are a member of a club in new york and you go on the kitchen to florida, you cannot medically use the closest club on vacation in florida, you can automatically use the ptosis club use the closest club. It is a very convenient option for a lot of people. Alix that is what i am talking about. At boats are quite expensive 40,000. You said they are younger people. Who are they that are really interested in buying this . I would think of it as a ceo type of privilege, but it really is not that much. David not at all. Our average boat fire earns about boat fire earns boat buyer earns about 100,000 a year. Some are more extensive than that obviously, but we try to offer something for everybody. Many boats start at about 15,000, so very accessible to a broad range of people, and a broad range of people are buying them. Alix you mention hiring as we look ahead. What is your biggest hurdle in hiring people . David there are some specific things to overcome in the covid environment. Fairs have to be either virtual or very carefully planned. But ultimately we have been extremely six for. We are hiring across all the u. S. And in europe, and being pretty successful. So i am happy with the way things are going. We would like to get as many boats out as we can. We certainly want as many people on the water as we possibly can. Alix in the u. S. , do you get a sense of what the biggest and pediments . Theres a lot of ash the biggest impediment is the biggest impediment is . Theres a lot of pushback that the Unemployment Benefits are keeping people from going back to work. David we are seeing premiums in certain locations. We need to get people back to work, and we will do whatever is reasonable to do that in this circumstance. Alix david, it was really a pleasure to talk to you. But really, 100,000 . Its excessive to maintain about. I just got to ask to maintain a boat. Ive just got to ask. David fishing is something that gets passed down generation to generation. They will have it in a launching a lookalike. Often, what you see is the ocean boating, the bigger boats, but actually, the number of people boating is across many lakes and rivers in america, and that is more typical. Alix really great conversation. I know my coanchor is going to be devastated he missed this. Foulkes, much, david ceo of brunswick. This is bloomberg. Ritika it is time for the Bloomberg Business flash. Im ritika gupta. Eli lilly is beginning to test its coronavirus antibody drug and nursing homes. It is a treatment that has the potential to protect vulnerable groups that vaccines may not cover. Goldman sachs and bank of america have been left off an upcoming ipo in hong kong. They have kicked off lands to go public in offerings that could beat saudi aramcos record ipo. The oldest u. S. To part and store chain is seeking bankruptcy protection u. S. Department store chain is seeking bankruptcy protection. Lord taylor filed for bankruptcy after a turnaround plan failed. That is your Bloomberg Business flash. Alix thanks so much. We did get some information about covid cases in florida. Cases rose 1 yesterday for this is yesterday versus the seven day average of 2 , so a little bit lower. There is a hurricane headed towards florida as well, so that will interrupt any testing facilities, etc. Based on the stimulus plans we have not heard from congress as they are moving towards vacation come friday, nancy pelosi says she is hosting a meeting with chuck schumer, mark meadows, and treasury secretary Steven Mnuchin. Hopefully they will be able to come up with some kind of deal. On the flipside, the white house on this news as it comes up. Also want to point out that house gop lawmakers are requesting a classified briefing as microsoft is still looking into buying its u. S. Operations. Coming up in the next hour, we are going to be looking at some positive data out of europe today with the berenberg chief economist. Officer on chief hr structural changes and work from home. This is bloomberg. Alix live from new york, im alix steel. Counting you down to the european close on bloomberg markets. Youve got a gloomy outlook from hsbc. Youve got some wrinkles in some pmis here in the u. S. And in europe, but the market doesnt seem to care. We have a solid move on our hands. Take a look at what is happening in the market. Outperforming here in the u. S. , moving higher. Tech, energy, and industrials leading the way as the euro takes a break from its record rally. We will dig into the markets and the Economic Data, and also talk diane gherson, chief of Human Resources over at ibm, on the structural shift happening within the work from home market. I want to break down the pmis in china, europe, as well as the u. S. We are joined by michael mckee,