Talking more stimulus. Then you have the cable rate. A lot of extension for benefits and the u. K. The cable rate does not move. It is a consistently stronger dollar. Same thing for the gilt market in the u. K. As well. Crude also going nowhere. The real action is in the equity market. Lets dig into that top story in europe. U. K. Chancellor of the exchequer rishi sunak planning to rescue millions of jobs at the coronavirus threatens to derail the u. K. Economy. I know people are anxious and afraid and exhausted at the prospect of further restrictions on our economic and social freedom. For at least the next six months, the virus and restrictions are going to be a fact of our lives. I cannot save every business. I cannot save every job. No chancellor could. The government will directly support the wages of people in businesses to face depressed demand the option of keeping employees in a job on shorter hours rather than making them redundant these are radical interventions in the u. K. Labor market, policies we have never tried in this country before. We have so often spoken about this virus in terms of lives lost, but the price our country is paying is wider than that. Alix joining us now is fabrice , chief u. K. Economist over at barclays. What was the message you took . Cant help but feeling a little bit disappointed, even though the message was jobs. We feel the scheme fails to provide a strong incentive for employees to keep people on their payroll. Think about this. If an employee reduces its employer will continue to have to pay more than half of fulltime wage, while he could as well put them on parttime or reduced hours. So i think while the chancellor was maybe trying to balance out to balance out too many conflicting interests, trying to reduce the cost of this job support program, it fails to provide a strong incentive to actually keep those people on the payroll. There are a lot of things we like. You mentioned more loans, and we let that the guarantees are extended from six to 10 years, which would allow Interest Payments to be much lower for businesses. Theike another deferral in payment in several installments. That is very powerful. But purely on jobs, we think something got missed here. Alix i feel like a lot of the reaction i read is the same, that this doesnt do enough. Then there is the other side of paying for it. Can you model how expensive this is going to be . The whole point of ending the Furlough Program to begin with was because it was too extensive. Does this help it on some level . Either youabrice have those people on a furlough scheme, or you have them unemployed. Given how sluggish the recovery is in the u. K. , but also elsewhere, there is just not demand for labor at this point to hire all those people. In the u. K. , we are basically targeting Something Like 9 unemployment if people are not in a Job Retention scheme. If you have a Job Retention scheme, those people might not show up as unemployed, but supported by the schemes. So i think the right question cost,s not so much the but rather the effectiveness in providing confidence to the economy. What is needed right now is to unlock those 2 to 3 involuntary or precautionary saving has been built up during the lockdown, and that makes the difference between a strong and weak recovery. Confidence should be at the end of all of the government action. , thick aboutg france and germany announcing 130 billion of investment programs. We are still missing those in the u. K. Alix how do you unlock that additional 2 to 3 . What could be the additional thing in the coming weeks to give it extra juice . Fabrice at the core of it crisis. The we have seen in the u. K. That the lockdown may have been a bit less stringent than elsewhere, but the shock has been bigger because the sanitary crisis was worse. Point number one, get your health together. That should be a priority. Point number two, protecting jobs is essential, but it is also about creating new opportunities because he acknowledged this morning that he will not be able to save everybody. Those people who are losing their jobs in those sectors which might not be viable as we know them, they will have to try new opportunities to rebound in the future. Talkalk about covid, but also about climate change. Talk about technological transition, talk about industrial policy. By canceling the budget, you are just delaying that kind of good news to come to support confidence by maybe six months or so. Alix can we do anything . We heard also that they are going to extend a funding scheme to allow borrowers to extend the duration out to 10 years, but andrew bailey, the head of the doe, says he is still not ready to make a call on negative rates. Fabrice here again, we are trying to preserve and protect on the downside. The bank of england feels that if this recovery goes off track, they will have to do much more. We are not in a position yet to make a decision. We need data to show that the situation is much worse. But it makes no doubt in my mind that if this recovery goes off track, even if it is because of the second wave or because our forecast is too optimistic, the bank of england will have to come out with a new package, with new powerful measures, and those will likely include all three of the preferred measures , which are toolbox Forward Guidance and negative rates. This brings me back to the u. S. As well because i have been struggling with the idea of what stimulus actually means. Is it a short term stopgap to save the economy, or a multiyear invest in process like we saw in the 1930s to restart longerterm growth . What is the stomach for Something Like that . Say it i am tim to do is not like we have a choice. We had issues preexisting the pandemic which already required a multiyear investment plan. Look at germany. Think about the car industry. Look at the u. K. Think about stagnant productivity over the past seven years. A lot of these issues required government to step in. , andovernment felt it already announced earlier this year quite an Ambitious Program of spending in the u. K. , but we dont have any details on that, and to a large extent, we havent heard anything over the past nine months regarding this program. So definitely we need an industrial policy that mixes more resilient to climate change. We need the Health Care Sector to be put back in shape. Alix can you do that in the middle of brexit, when state aid is the hot button topic now . Fabrice state aid is never really an issue in the sense we are just trying to find a common lending zone that is acceptable for both the u. K. And the eu, but when it comes to investing in new technologies, investing in green energy, that has nothing to do with state aid. When it comes to brexit, we are focusing on a very narrow point of the discussion, but there is so much more that is out there and that can be addressed by governments. Alix i really enjoyed the discussion. Coming up, we will continue the conversation from a market perspective. No fireworks for the pound so far. More on the ethics news and the Dollar Strength on the ethics the on the fx news and Dollar Strength with jane foley of rabobank. Ritika lets check in on the bloomberg first word news. Senate Majority Leader Mitch Mcconnell says there will be an orderly transition of power after the november 3 election. He tweeted today that whoever wins will be inaugurated on january 20. President trump said yesterday the Supreme Court will likely have to decide the outcome of the election. He has refused to agree to a peaceful transition if the democratic nominee joe biden wins the white house. President trump was heckled by protesters who chanted vote him to as he paid his respects lake Supreme CourtJustice Ruth Bader ginsburg today. The president and First Lady Melania Trump stood silently at the steps of the court and looks s cloudginsburg s flag drapedurg coffin. Protesters also chanted honor herwish, a reference to dying wish that the next president choose her with placement to the court. Two cops in louisville, kentucky were shot after they were called to an area downtown. Police in louisville have announced a curfew for the next two nights. The officers injuries were not lifethreatening. Police have made nearly 100 arrests in the city. There were also protests in new york city, chicago, seattle, and atlanta. Britains finance minister has laid out his plan to rescue millions of jobs and businesses as the coronavirus pandemic again threatens to derail the nations economy. Chancellor of the exchequer rishi sunak announcing a plan to subsidize wages of people working parttime. The plan but also extend loans to businesses hit by virus restrictions. Than 150,000 more businesses and help protect 2. 4 million jobs through the winter, i am announcing today that we are canceling the planned increase and will keep the lower 5 rate until march 31 next year. Bleak sunak painted a picture, saying, i cannot save every business. I cannot save every job. Global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Alix the pound going nowhere on that after the chancellor of the exchequer announced that scaled job support. Going to me from london is jane foley, rabobank head of fx strategy. Jane most of the reaction we have seen in cable is because of Dollar Strength. In terms of the news from the chancellor today, a lot of it had already been in the press. We had known for quite a long time that this furlough scheme was going to end. We also know theres been a lot of opposition to extend it, so we knew that whatever we got wasnt going to be as much of a spender at the furlough scheme. I am sure theres plenty of disappointed for a lot of people, and certainly theres clearly theut concern is not really wanting to create room for more Zombie Companies in the mediumterm. Alix is that a good thing longerterm . Jane it depends on your point of view. Theres a massive social cost, and the likelihood is theres going to be an awful lot of people unemployed as a consequence of this. It is very difficult for anyone to judge what is a Viable Company and what is not a Viable Company. Certainly there are plenty of companies that are very viable, and things have changed so much in the Global Economy in terms of demand that things have really swung around. So it is difficult to make that decision, but unfortunately that is something happening right now and companies will be judged as a consequent of what is happened. Alix what does all of this mean for the dollar . Are we tapped out . Are we going to roll over . I struggle to understand what the dollar is reacting to. Is it d. C. . Is it stimulus . Is it the election . Jane i think it is a mixture of all of these factors, but they want to start on is probably positioning. Perhaps the upside in the euro over the summer had gone too far. That starting point, and then a number of the factors you have just been talking about, for instance, we have seen stock market are volatile, and the market has taken on board this perception that the covid19 crisis and many of the conditions with it are perhaps going to be with us for longer. So this isnt about a vshaped recovery. This is about adjusting to something which is going to be around potentially in some form for the next couple of years. That has a huge economic impact. Then youve got the election. If got the possibility of a contacted of a contested election. That could create some safe haven buying as well. If you look to europe, it is not tot the u. K. That is had adjust fiscal measures. Theres this whole conversation about a second wave in europe, starting really with the emerging market economies in Eastern Europe and pushing through into other parts of europe. That is possibly weighing on the euro, so another test so a number of different factors coming into play. Alix dollaryen has had a bizarre move. At 1. 05 . Laryen jane if we were to go back five or 10 years, i would have said it is the yen that is the most established safe haven currency, but i think the dollar has began to prove itself since the Global Financial crisis. Think that is linked to the development of emerging markets and growth in emerging markets. The real growth of the dollar as a transactional currency. Charactere safe haven of the dollar is not linked in any way to u. S. Fundamentals. I think it is linked to the use of the dollar, the fact that if you look around the world, it is linked to the amount of dollars in Foreign Exchange reserves. Dollars is a need for once people are feeling risk appetite, and this is why i think the dollar has will proven itself. The dollar is in a bit of a battle for the safe haven, so it is going to be interesting to see which way that windows. Which way this windows. Alix i want to get your take on turkey, having that surprising rate hike today. Do you get the sense that this is a course of real tightening that we have seen out of the turkish central bank, or is it another kind of mirage . Jane it is real tightening because we finally have a move in the repo, and the market is expected to have the stealth tightening. Weve got a real move here, and i think most economists, most people in the market are really willing on the central bank doing this. From a market perspective, this was the right thing to do. Inflation is a problem. Theres concern about the Financial Stability in turkey. They needed to hike Interest Rates, but no one thought that they would. The fact they have done it i think is a really good sign. The question is, will the government, will erdogan really allow the central bank to go further with this move . Alix in theory, they could not have done this without his approval in some way, considering how much pressure he has on the central bank. Jane that is what the market thought, and that is why very few people expected the move today, but i think the proof is going to be if there is any pushback on the government to the central bank in the next few days, the next few weeks. Alix when you take a look at turkey and em, they are battling the inflation issue and the depreciating currency. Any other Central Banks in e. M. Economies that are on the same path, but doing better . Jane it is quite interesting. I think if you go to more stable e. M. , looking at poland or hungary or other countries in that region, perhaps the opposite is true. They would like their currencies to be weaker because they are think and get out potentially winning more businesses, potentially from asia. Weve heard of quite a lot of on shoring in the last few months. If there is more back towards the major market, and those economies really want to benefit from that, and you could argue that for than, there is a little bit more of a currency war. A month or currencies to weaken, and who doesnt want a weaker currency . But turkey has gotten inflation problem. Alix what is your top trade right now as we head towards the election . Fx volatility is fully picking up. Alix i think fx allah jane i think if we have seen a stronger dollar, if we see that coming through more, currencies like the aussie could drop more if we get more of a risk off appetite. Alix great point. Maybe one day we can be onset together again. James foley of rabobank, think you very much. This is bloomberg. Ritika its time for the Bloomberg Business flash, a look at some of the biggest business stories in the news right now. The federal judge who will decide whether to temporarily block President Trump from enforcing a ban on tiktok starting sunday is considering postponing the deadline. U. S. District judge carl nichols said they would ask lawyers to rule on the request. Tiktok has asked for a preliminary injunction, trying to complete a deal with oracle and walmart to keep the Popular Video app operating in the u. S. Goldman sachs economists cutting their forecast and half for u. S. Growth in the fourth quarter. Researchers say they made the decision after it became clear that there would not be additional stimulus this year. Goldman economists now picked the Worlds Largest economy will now expand on a quarterly annualized basis. Is European Central bank given more incentive during the pandemic to issue ultracheap funding. The threeyear targeted loans have become one of the ecbs most important tools during the coronavirus crisis. They carry an Interest Rate as low as 1 , meaning the ecb pays banks to borrow as long as they are used to fund Credit Companies and households. That is your latest business flash. Alix thanks so much. Another banking story i am watching today is wall streets biggest names are shifting some assets from the u. K. Still, European Union operations have a way to go before they can match the assets that are in london. For example, jp morgan is moving about 230 billion to its front for it based subsidiary by the end of brexit, and the head of the unit said banks are going to move even more bankers from london. But they are doing now is just the first wave. Still, wall streets five big firms are keeping three times the equity and more than four times the, have riskweighted assets in the u. K. Subsidiaries been in the eu. The european close is coming up next, a risk off day. This is bloomberg. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Alix we are rounding out the close of trading on thursday in europe. A risk off day in europe. The u. S. Modestly outperforming. Part of that is the diverging stories. Europe reacting to these locked situations like in france we have seen, where what where bars will be closing at 10 00 p. M. To avoid the coronavirus and stimulus programs and the u. K. In u. S. It feels like it is more of an election risk story Mitch Mcconnell saying we will have a victory, we will inaugurate a president january 20. That helped stabilize markets. Two diverging stories. The ftse 100 the underperformer due to the issues in the u. K. , richey sumac unveiling new job health measures. Investors and analysts do not feel like he did the right thing. It did not do enough to support the economy. The cable rate going nowhere, the are going nowhere, the dollar stronger in the u. S. Oil rolling over making energy the underperformer in europe as well along with some mix of travel and leisure stocks in france. We want to get a closer look at some of the big movers. Here is scarlet fu. The stocks scarlet the stoxx 600 resuming its decline. With todays loss it has wiped out the advances and is now a threemonth low. It is headed first worst weekly loss since june and we still have one more day of the week. You highlighted what is happening in the u. K. And france. It is down across all the major European National markets. The only exceptions i could find, i had to page forward on my screen quite a few times. Jack and serbian markets finishing in the group cze ch and serbian markets finishing in the green. Retail and Energy Stocks are leading the way down. The biggest individual loser in the stoxx 600 and the biggest drag on the energy group is a Norwegian Hydrogen tech firm. Nicola is its customer. Alix that makes sense. Scarlet that is down as much as 13 following the down grave the downgrade from dan ives at what bush. A confluence of negative headlines. Much more pessimistic in europe over last few days. In addition to these slowdowns, lockdown light as you like to put it. The pmi data across the region showed a slowdown in services, even as manufacturing improved. That is consistent with what weve been seeing the u. S. The goal to avoid mass lockdowns as Different Countries look to slow the spread of the virus. Youre looking at losses across the travel sector. Travel shares are down 16 since they are high in early june. Iag, british airways, one of the lease decliners off more than 6 . Iata says airlines may need a new round of state support, and other words bailouts, if air traffic continues to stay at current levels. Particle losing 6 and air france down 7 . Alix you have powell and mnuchin testifying at the Senate Banking committee and mnuchin saying President Trump supports more aid for airlines. Different comments. I appreciate that. Lets stay on aviation. Guy johnson spoke exclusively with easyjet ceo. He said governments need to do a better job of supporting the travel industry. There is a case to be made that the situation we are in and the consequences of the government associated policies on the restrictions for travel is a result of the pandemic, which we all accept. It has enormous effects that you cannot expect the industry to be able to cope. Iagainst that support am not against that support. It iss not acceptable is so different and unevenly distributed. If you take easyjet as an ,xample, going to this crisis one of the worlds strongest airlines. Because we are not in that desperate need to survive the next week or the next month without being seen as a risk, and the same goes for a number of other companies in the u. K. Where billions has been poured into a number of other airlines. That distorts the market and distorts the competition. That is what i am against. We spoke on bloomberg tv about easyjet receiving a massive handout. On what scale do you think you do need assistance . I am sure you would push back against that strongly. You only have to look at the arithmetic in terms of the amount received by the likes of air france and lufthansa and compare them with what the u. K. Carriers received to see the gulf that exists. On what scale do you need assistance . That is a very illinformed decision. You should not make comments if you do not know the facts. There are number of flagship carriers who receive if you divide the support versus revenue, up to 38 . We received less than 10 . Tohave been getting access the 600 million, which was available for all companies who had a credit rate investment. You would also know there are companies in there that does not pay u. K. Corporate taxes, a couple hundred employees versus easyjet 8000 employees in the u. K. We think it is unfair. We also had the furlough, which has been helpful. The matter is is a difference in the scale that is the concern. What would we be looking for . We would like to see a generous support package for the industry. In terms ofenough the charges. We would also need to have a much more refined quarantine system and need to make sure testing is introduced. That would also bring confidence back. A testing system will not system,the quarantine but if you had a more targeted risk based approach when it comes to the qualities, you could introduce the testing into the highrisk areas and that needs to happen at the same time the support comes in to the industry. We cannot rule out there needs to be specific support coming in to companies. Ceo that was the easyjet speaking exclusively with guy johnson at the World Aviation festival. Here is a followup on that. Some european airports are trying to quit fire coronavirus test hoping to breathe life into the devastated Airline Travel industry. The tests can be carried out in 30 minutes. That could help the industry overcome the travel per that has brought modest traffic to a shuddering halt. Dogs that canwith sniff out the virus. It is not just in europe. United air said they will offer coronavirus test. You flywill cost you if to hawaii but you will avoid the quarantine. Going back to the World Aviation festival, guy johnson asked the jetblue coo if air travel in the u. S. Has been picking up at all. The demand outlook is stabilizing somewhat. It is trending slightly positive. In early june, we saw a bump in demand as new york cases came down, and then in the summer time frame, the south hit an all on case counts. Quarantines were put into place around the United States and we saw increasing pleasure. As we increasing pressure. We have seen demand coming back in our international travel. Think peruvian islands. Some demand coming back in the northeast florida, notwithstanding the fact there is still quarantine in new york, connecticut, new jersey area that prohibits folks coming in from states with a high count to come in without quarantine for 14 days. Guy there seems to be a lot of uncertainty around what is happening in new york. Every couple of days you see a new headline. Has been added to the quarantine. How is the uncertainty affecting things . It is challenging for customers. Customers do not know when to expect. Coming in from a state that is a 14 day quarantine that then comes off, you have to quarantine for 14 days . We are encouraging connecticut has put into place a testing exemption that allows you to risk a negative test within 72 hours of departure or on arrival, and the period of time in which you get that test you do not have to quarantine. The same thing with massachusetts. New york has yet to put one in. From our perspective we are concerned about the impact that will have on economic recovery longerterm. Theres also the view there is widespread compliance with these 14 date or teens, and it is hard to tell whether people are complying. We do see in the case of connecticut, before they put their testing exemption, we saw customers booking around connecticut, booking and other locations and then going to connecticut from airports outside the state. If somebody has to travel for a funeral or a wedding, they will find a way, and we are actively encouraging the governors around the United States to come up with a more cohesive approach to air travel so that customers know what to expect when they come to a destination. We think testing is absolutely the way out. Right now we do not have an adequate Rapid Testing solution. In the absence of that, having an option producing a negative test in 72 hours, that should be the browns to not have to quarantine for an extended period of time, and have that consistent from state to state. Guy a bunch of questions out of that. Do you think it is easier in the United States versus europe to get states on the same page because there is the overlay of the federal government . Think 72 hoursu is too long . There is talk of getting it down to within an hour. Do you think 72 hours is unrealistic and that is part of the problem . I will start with your first question. There has been a lot of challenges around coordination across the state and the federal government has not taken as active a role as it needs to to ensure coordination on things the government should be stepping into such as testing, whether it is temperature testing, whether it is covid testing, there are things uniquely situated for the navigate, andhelp that has not happened in a cohesive way. Alix that was guy johnson speaking with the jetblue coo at the World Aviation festival. We want to check in on where european stocks have settled. A risk off day. The ftse the underperformer. Disappointment when it came to the unveiling of more job support. Most economists feel to not go far enough to save the jobs. The dax off the lows of the session, but it was the energy, consumer staples, and materials, and recovery trade that got hit the hardest. ,eal estate managed a tiny gain up. 2 . This is bloomberg. Ritika this is the european close. I am life in the principal room. Coming up, United Wholesale mortgage ceo at 1 00 new york. This is bloomberg. Lets check it on the bloomberg first word news. China is preparing to ease its restrictions on foreigners entering the country. The move comes following a monthlong blanket suspension covering most visitors. People entering the country must undergo two weeks of quarantine. China reported seven new coronavirus cases today, all of them imported. It has been 30 nine days since the country has reported a case of domestic covid19 transmission. Israel is tightening lockdown restrictions again to try to rein in a surgeon covid19 cases. The cabinet voted to close all nonessential businesses. Prayers and political demonstrations would be limited to open spaces and no more than 20 people. The measures set to going to force friday and have the weekly sabbath and the jewish holy day of yom kippur. Astrazeneca says it is still waiting to hear from u. S. Regulators about whether it can resume testing its potential coronavirus vaccine. The british drugmakers global trials have been halted over concerns about a participant who became ill. Astrazeneca is one of the front runners in the race to find a safe and effective vaccine. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am ritika gupta. This is bloomberg. Alix for more on the race to control the pandemic is martin landry, university of oxford professor of epidemiology and one of the lead investigators of the recovery trials, treatments for patients hospitalized for covid19. Great to have you on the program. What you know so far from your recovery trial . Martin we started the trial and by june we had results. The headline result was we discovered a cheap, widely available drug reduces the risk of death in the patient. That is a great news. We got two other answers. Hydroxychloroquine which had been widely promoted and widely used turns out not to be effective. The same is true for a drug normally used for hiv, also not effective. That is one very definite positive. Those two important negatives, that means those treatments do not get given and we turn our attention to the new round of treatment s. Alix are these given to people in the icu, or can these be given to patients who show modest incomes . Martin all of our trials were in patients that have got to the hospital, relatively sick patients. In the u. K. , among the patients they go to the hospital in the last six months, about one in four die. The treatment is for those where the disease has got so bad the lungs were being affected. They needed oxygen and some of them needed ventilators. In those patients that seem to work surprisingly well. Widely available treatments already being used around the world. Guy alix when we talk about it worked well, does that mean they are able to stabilize and get better and do not die, or does it mean they can make a full recovery . Something we keep learning about this disease is parts of it can stay with you for so long. What do the treatments do . Martin number one is you do not get longterm symptoms if you do not survive. Survival has to be the number one objective. The drug improves your chances of getting out of hospital alive. That is a good start. The second thing is among the patients not yet on ventilators , it reduces the chances of them needing to go on to ventilators. The third thing is, among the itients in hospital, reduces the length of time there in hospital. Too early to know how that plays out in terms of longterm symptoms, but it a great start. Good news around the world. Alix how is it to manufacture, easy access, distribution, cost . Martin if you wanted to choose a drug to give you those benefits, you would choose one which has the biggest effect on the sickest patients that cost in the u. K. Five pounds and in the u. S. 10 widely available on the who potential medicines risk and premuch available in every pharmacy around the world. Manufacturer supplies are not the major issues. The challenge is that the one drug that has some effect is not enough. Still patients are drying are dying from covid, still patients in need of ventilators, we need more and we need different treatments. Move how about when we from treatments to plasma and antibodies. Where are we in your research . Martin studying both of those as treatments. Convalescent plasma taken from those who have the infection. Largestdy have the round of convalescent plasma in the u. K. Through the recovery trial, but it is not big enough to know what the results are. I do not know the results. Nobody knows the results. We will keep playing that out. The epidemic is on the rise in the u. K. , and i do not anticipate getting answers towards the end of the year. The same goes with the neutralizing antibodies, we are ernon. The one made by reg that will go into the patient by the end of the month, and we will study large number of those people to get a clear answer. We have to know whether the have a goode work scientific basis behind them actually translate into real benefits for patients, reduce the time in hospital, reduce the need for ventilators, improve survival. Guy how does this play into the alix how does this play into the race for the vaccine . Does this help bridge the gap until we get the vaccine in the sense if you do get sick there is hope. Does it help with herd immunity, does that help with not going into severe lockdown . Martin with or without a vaccine, one will always want treatment because there will still be people who do not get the vaccine for a variety of reasons or who get the vaccine and over time the effects wear off. Patients who get covid will need treatments now and in the future so we need treatment. With regard to how does this help with lockdown, one of the things that drives lockdown here and around the world is the concern about the sickest patients. If this was a disease like the common cold, which everybody gets, but nobody ended up in hospital and those in hospital to just find, we will not have problems. If we can turn covid from being a disease if youre unfortunate enough from going to hospital, you have a one in four chance of dying, if you turn that into a disease which has much less headroom forgives the future scaling back of the lockdown type measures. Alix i appreciate it. Martin landray, university of oxford, professor of medicine and epidemiology. Here is another fallout. Fewer students choosing to attend college in the u. S. Because of the risk for covid and the prospect of online classes. New data shows undergrad employment has dropped 2. 5 . The steepest decline was among international students. Enrollment dropped more than 11 even the most sought after are feeling the impact. Harvard universitys undergrad enrollment fell almost 20 . I wonder what their enrollment will be for the following year when there is a vaccine. May be overloaded with freshman applications. This is bloomberg. Kailey time for the ritika time for the Bloomberg Business flash. A look at some of the biggest business stories in the news. The u. S. New homes in unexpectedly advanced for a fourth month in august to the highest level in almost 14 years. Record low Mortgage Rates continuing to entice buyers and a market with ever shrinking supply. Up 4. 8 to an annualized pace of one million following a 4. 7 surge in july. After all of the trauma, the u. S. Oil industry has been through, for production cuts to mass layoffs and a string of bankruptcies, many producers say they are still prioritizing output overproducing debt. 19 producers in the latest Energy Survey said keeping production flat is a primary goal over the next six months. 16 said growing output is their top priority while another 16 prioritized reducing debt. That is the latest business flash. Thanks so much alix thanks so much. That wraps it up for me on bloomberg markets. The dollar is rolling over. S p highs of the session. Coming up on balance of power with david westin, he will be speaking with the Johnson Johnson chief scientific officer. Happy thursday. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. More voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music david from bloombergs World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. Welcome to balance of power, where the world of politics meets the world of business. We want to start with a check on the markets. Joining us is scarlet fu. Intraday seems to be all over the place. Scarlet all over the place is a great way to call it garrett after opening the red stocks seem after opening in the red stocks seem to have found their footing. Futures are not providing much of a direction. What turn things around quench mark what turn things around . Mitch mcconnells tweet about an orderly transition of power. Steven mnuchin said once the Senate Passes a bill passes the bill to present to prevent the government shutdown, he and nancy pelosi will resume their talks on fiscal stimulus if you look at the sectors performing the best, technology is dominated by apple and microsoft. Consumer discretionary is amazon. You have the safe havens back in play and the nasdaq 100 up 1. 2