Miami is extraordinary. Francine it is. What we are seeing in the u. K. , ester 10 daysc ago. It seems authorities have a better handling to track and lockdown onng this this city instead of everything. Very different in the u. S. Where cases and deaths are rising and at record highs. Tom amazing to see the acceleration in the death rate in some of these states. For our international audience, it is in america, riveted by this virus. Ritika morning. Coronavirus milestones climbing in the u. S. , new cases climbed over 60,000 in one day for the first time. Florida,lifornia, Record Number of deaths. New york city events requiring permits have been canceled through september. The u. S. Is set to take the next step in a battle with france over taxes on technology giants. The u. S. Will impose tariffs on 700 million in french goods including wine, cheese and handbags. Biden has laid out a plan that will make americas economy better than it was before, he says. To boostdate wants manufacturing and encourage innovation, with a focus on buying american, avoiding bigticket proposals like the green new deal. Agencyernational energy has boosted its outlook for oil demands. Sayss monthly report, iea a collapse in fuel consumption during the Second Quarter was not as bad as originally thought. Global news, 24 hours a day, on air and on quicktake from bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Tom thanks. Equities, bonds, currencies, commodities, extraordinary. Equities, we are depressed, 11, the vix, 29. 87. I want to sit on bonds. Frenzy,more than a bid as the price elevates. 14 , 10 year, yield has plunged. 58 . Moving bond, maturity, down. 1. 25 . All of this, the curve flattening. Fascinating to see this. Francine incredible. A lot of people in the market are expecting record lows will gather momentum in the coming boe rateshe negative grows. Barrel,e trading 39 a european stocks fluctuating, treasuries jumping sending the five year yield near a record low. Tom important conversation. The equity market. I particularly want to look at what we observed, core bank stocks, tech stocks. Good competitor at citigroup, expanded his twoyear 3550, at amazon out to aginormous forecast well into 2022, speaking of the analysis and extrapolation going on right now. Career as arling security analyst before he entered the dark side of portfolio management. We are thrilled. Andrew, you and i have never seen this before. Into 2022 whatng we are seeing into these Technology Stocks . Andrew great question. Expectations in these Companies Moving into nearterm earnings season. I think they are extrapolating out good things, pulling forward info and expectation into currently embedded stock prices, with Earnings Seasons around the corner. Tom right. What is so interesting is the theory we learned in school, the basic idea of price, earnings, flip them, and you get the yields lower right now. Yields go ever lower. Can you live sustained as a Portfolio Manager . Have been in this business a long time. I remember the anxiety of 19992000. You are saying, do i just chase a few stocks going to the moon or do i be responsible to my client base and not own them and therefore lag . It is starting to feel that way again. A few stocks have outrageous valuations and the rest of the market is being left behind. Francine what will accelerate that trend . Andrew we are already in a bubble in the nasdaq but we are levels of the valuation bubble of 2000, when it did burst, but we are getting there. What will accelerate it is the fear of people like me or investors, of missing out. I have to get in. More and more money piles into fewer names which causes the bubble to expand, ultimately, before it pops. The tech sector is more expensive than it has ever been but for 2000. Francine what would make it pop . I know it is difficult to pinpoint. It is the search for yield going on . Is there something that will make Equity Investors realize it cannot go on this way . Andrew if you think back to 2000, ultimately what burst the internet never went away. Ultimately, companies could not deliver on the ever heightened expectations. Ultimately what brought it down was Companies Reported good numbers but they were not good enough. That is one of the ways it could bring it down, ultimately, these companies cannot report the numbers expected. The other way it brings it down, it goes back to the initial okstion is losing money is if you expect in 2022, 10 years out, whatever, you are going to make money and therefore discounted cash flows justify valuations. If Interest Rates were to go up, suddenly those cash flows dont look as attractive. That does not seem to be the case today, as we are seeing with Interest Rates. I think that is because you have this constant bid by the fed. There are signs of inflation percolating. Look at gold, the weakness of the dollar. Off, the rates, do they move higher . Tom i cannot remember if you took the course, chicago or lemmings 101 . Every cfo goes off a cliff. Did Warren Buffett change the dialogue this week . Are we going to see the wall of money out there finally going to an mnf frenzy . An m a frenzy . Andrew i was excited he bought into a sector that was down and out. I thought that might cause the market to say, gosh, maybe we should by more than just these few stocks. You cannot say the market is in a bubble. You can only say the nasdaq is in a bubble. I thought it would cause reevaluation. Gee, maybe we should by the sectors because there could be m a in this area. That has not been the case. Same stocks that have moved this week. I cannot answer that. I am baffled. Tom well, thank you so much, greatly appreciate it. It, though we cannot answer we will continue with andrew this morning. A lot coming up, important conversation, fiscal stimulus. China maybe . U. K. Definitely. U. S. , more coming. Thenderful time to speak to International Monetary fund. Yields lower this morning, stay with us. This is bloomberg. Francine this is bloomberg surveillance, tom and francine from london and new york. Portfolio atr morgan stanley, i am looking at gold and the fifth weekly 1800 perovering near ounce mark. What does that tell us . Either it is uncertainty with risk assets leads people to aboutr it is something what is going on in the currency markets, debasing the currencies. There is a combination right now. Gold was going up when the equity markets, risk on assets were going up. I dont think it is just a risk off trade. I think it has more to do with the dollar weakening. The dollar has weakened against other currencies. This is why you are starting to see asian equity markets break upside. To me, it is all the same play. Strengthening. Ld your started to see signs inflation is picking up. We are not seeing it in the bond market yet. Tom will we see it in the Business Plans of multinationals . Not that they are pricing gold minute by minute but im fascinated if we get a renaissance of multinationals. Everyone is betting against globalization now. Do we actually go the other way where the multinationals prosper . Question. Od it makes for great headlines about deglobalization. At the end of the day, Global Growth is coming back. Ism numbers around the world are starting to recover. That will help multinationals. I am dubious of headlines. I think stocks will recover because we are in a recovery phase. Never lose sight of the fact that you have extraordinary Central Bank Stimulus going on. That will help economies and companies. Francine andrew, thank you so much. Shortly, the Eurasia Group head of research, we will talk europe and china and u. S. Elections, next. This is bloomberg. Francine this is bloomberg surveillance, tom and francine from london and new york. The upcoming u. S. Election, reopening the economy and controlling the virus, at the forefront of political uncertainty. Markets awakening to a different reality of leadership as joe biden lays out his economic recovery plan. The polls are interesting. Meredith, great to have you on the program. The policies we are starting to see from joe biden, in terms of foreign affairs, and i dont know whether anyone will care on november 3 but what does it mean for pivot to asia, the middle east, europe . Meredith good morning and thanks. We are calling the election now for joe biden. How he is thinking about reconstitution of u. S. Leadership in the world. He is a longtime Foreign Policy and. I worked alongside him in china. He knows what he is doing internationally, given his longtime and the Senate Foreign relations committee. The challenges that the world has moved on from u. S. Hegemony alone. This is a different world than six months ago. His approach will be tested by major shifts in u. S. Politics and the geopolitical order. He will have to work harder, including with partners and allies, he will be looking to europe, as well as new partners in emerging market economies to try to hobble together and impacth that will have globally. An approach that will have impact globally. Francine what would joe biden as president mean for the people in the middle east . Would it be a significant shift . Meredith there would be more attention paid but not as much as in past u. S. Administrations. U. S. Energy independence and an administration focused on green energy will limit and deepen involvement in the middle east. He has broader ambitions of a u. S. Iran dialogue. His priorities will be working with iran to put the Nuclear Issue back in a box but also, stabilizing israel and palestine as a secondary top priority. Go ahead. Tom good morning from new york. I have been dying to talk to you about a vice presidency of susan rice. You are saying joe biden will win. I am not willing to go there yet. I am willing to say picking the Vice President ial candidate is critical. The mayor of orlando, etc. You work with these people. Can susan rice reach out and have a domestic voice as a Vice President ial candidate for mr. Biden . Meredith susan rice can certainly make that domestic case. Given her time, with president obama, she was focused externally. For most americans and abiding campaign, when you hear them talk about rebuilding ties with europe and what they can do to and u. S. Asia traditional allies and partners, you are hearing two things. , domestic sources [indiscernible] they need to make american foreignpolicy work for a domestic populist highly uncertain, concerned about future livelihoods and the resiliency of the u. S. Domestic economy. With susan rice as Vice President or any of the Vice President ial picks joe biden might pick, what youre going to see is a focus on rebuilding at home and making a stronger case for why having a strong Global Presence and global relationships, including in trade and investment will be critical to building a pandemic resilient economy that has a solid growth trajectory moving forward. That has never really been done very well in recent political memory. This will be a key challenge for that administration. And thisinating to me, is a richard haas kind of question, he has linked our fiscal temperament to our Foreign Policy. Sumteraffect a foreignpolicy given trillions of dollars of deficit . Meredith we will have to start somewhere. I think what you will see in the u. S. , if you have a Joe Biden Administration, and you are right to not count the president tendency to pull rabbits out of hats, but we place a 60 probability joe biden will win in november given our read of polls. What you will see domestically, the passage of a stimulus deal by the summer recess, thereafter, wariness to bring on more debt. You cannot drive a healthy recovery by just stimulus alone. Conversation if you have to spend more moving forward, rather than just monetary stimulus or sending checks, what are you going to do to rebuild infrastructure . That will be critical. Francine thank you so much. Interview this is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Tom good morning everyone, thrilled you are with us. Good conversations coming up, i believe, further in the bloomberg day, ian bremmer may show up. We are more fortunate. We have meredith sumter, Eurasia Group, kneedeep in research. Meredith, i have been dying to have you on to direct our attention to what is not spoken of in china. Everyone focused on hong kong, on beijing and then there is taipei. I want you to give us an update on the distance across the sea from taiwan to mainland china. What do you foresee that Eurasia Group . At Eurasia Group . Meredith a great deal of unease. On theon is focused consolidation of chinese power over hong kong and this is not missed on taiwan but for beijing, with such a move, they have really risked a lessening of support by those on taiwan for close ties with china. It is quite interesting if you see the way the kmt has been shifting approach domestically, to get space between itself and mainland china. Term, there will be space given to the kmt and taiwan as beijing focuses on trying to further consolidate the position it is holding in hong kong. Tom we are far beyond nixon and kissinger, even farther beyond shouldhanghai, how a Joe Biden Administration or second Term Trump Administration support taiwan . Meredith starting with preparing a relationship with china where you have a Communications Channel and you are able to provide your views of what would be best for stability across the taiwan strait. That is the way you are able to help partners in taiwan elevate their message in beijing. Without that active channel, and to my knowledge now, there is not one at a senior enough level, that will be a challenge for taiwans leader as well as the u. S. In terms of protecting taiwans longterm interest. A Joe Biden Administration is going to have difficulties in quickly shifting its relationship with china. Should you see that administration. That is just because there was little trust before. There is no trust now. Withis coming at a time the u. S. Trying to shift, we see, over the next year, president xi is going to have longerterm challenges that markets are not necessarily baking in just yet. At howe when you look china has dealt with the pandemic and the fallout internationally, will china recover credibility from this or is that just added to all the concerns and fights between the westin china on security law in hong kong, but they are doing with the uighers as well . Meredith great question. You have to separate different sets of issues for china. One, there are these core interests that china [indiscernible] , south china sea, taiwan as well as the state backed system these are core issues xi jinping believes is critical to the longevity of communist party rule in beijing. Second, how is china going to be a great power externally . That is quite interesting. There has been a hit to beijings reputation, in part because of the state backed economy and the economic coercion it employs to try to get countries to allow it to pursue interests the way it wants. You see active thinking in beijing policy circles about what kind of power china needs to be globally. Once we get past [indiscernible] response, i think you will see active thinking about trying to create space for a model different than the classic western backed economic model or liberal model. China will argue this model we have might be more appropriate for emerging markets that dont necessarily want to follow the westin path and we need space the western path and we need space for our models to coexist. That will be the challenge for diplomats under a Joe Biden Administration and the xi jinping government as well. Can they find a way for this to coexist or not . Francine thank you so much, meredith. Lets get straight to the first word news in new york city. A rampageronavirus on through the u. S. Sunbelt, texas, california, florida, paul reported record deaths yesterday. In houston, all the icu beds are filled up last week. A day for the first time. Refused termshas of home confinement, including constraints on talking to the press. He is serving a three year sentence for Campaign Finance violations and other crimes. He was released in may and allowed to return home over fears of catching coronavirus. Breaking with the president. The chairman of the joint chiefs, general mark milley told congress it should look at renaming basis. He called the confederacy an act of treason. The president has threatened to veto legislation that would mandate name changes. Jennifer lopez and Alex Rodriguez are amongst a Group Bidding to buy the new york mets. The group has offered 1. 7 billion for the team. Stephen cohen has made an offer. Prefers ceo is said to the Rodriguez Group if the offer is close to the best bid. Global news, 24 hours a day, on air and on quicktake from bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Tom thanks. Folks, risk off in the equity markets, yields come in, all of this about the pandemic nationwide. We will speak with the gentleman from little rock, french hill, about how arkansas in the sunbelt, attacks the pan