A beautiful new york today. Good morning in washington boston. Early good morning out in san francisco, to all of you across this nation on sirius xm. We also say good morning to anna edwards in london. Why are we doing this . It is august. Ferro is off. From whats is off abramowitz is off. I said, i want anna edwards, and here she is. I am going to go optimism here with bob doll any moment, with home depot and walmart and all that. Explain to our american audience the place of Marks Spencer in the United Kingdom psychology, and what it means that one in 10 bodies will be shown the door. This isnt necessarily a very optimistic way to start the hour, but Marks Spencer, a huge retailer that was on every high street in the u. K. It is going to be getting rid of one in 10 of its staff, mostly through retirements and the like, but it is not just about covid19. This is a secular trend that has been affecting the retailers. Not only do they have to deal with the fact that a lot of their customers are migrating online, they have to migrate online, and that means cost. They have to invest at the same time, trying to shore up the revenue. ,om walmart with that headline up 97 on their online with the pandemic and all. Frame amazon because the wall street journal today saying that amazon will expand Corporate Office space in a number of u. S. Cities. Where does amazon fit into that retail mix . Anna huge presence in the u. K. , just like avarua else, i suppose. A lot of talk about whether they team up with any grocers here in the u. K. , but not so just yet. In europe, we are also focused on the virus and the ongoing outbreak. In equities, we are driven by bigger, more global liquidity forces perhaps this august. Tom some Research Notes saying it could be a length of time of the various were in teens various quarantines across many parts of europe as well. Futures are up 4 . Nasdaq futures may be leading the way once again. We has some good bond conversations, and a really smart conversation there. Dollar weaker, a change. Eurodollar really sustained. I mentioned turkish lira. Clearly a battle for the turkish government. I could rounded up to 7. 40, which is not good area that is a week turkish lira. We need to watch that through this hour through this hour of bloomberg surveillance. Robert doll of nuveen is a smart guy on framing the why. Hes one of those people that gives you courage to stay in the market so maybe you can make some money with home depot. Doll, you know that you have a stock, and then they go up off of news or something. How do you identify Companies Like home depot or apple that just, every quarter, seemed to do it, and every quarter seem to go up . Own both thankfully stocks. These are companies that have fedex that are interesting. Second of all, they manage their business well. Third of all, they generate a bunch of cash. If you can find companies to do those three things rather consistent, generally you are going to be in shape on those stocks. The home depot news, the walmart news, they are really good business. Tom i want you to speak to the people who are not robert doll. They dont have your experience. They dont have your sense of history. What do you say to the people who missed the boat . How do you get back on board any ebitda that is not in book we studied . Robert you have to agree that a year from now, the stock market is going to be higher than it is today. That is my view because the economy will be doing better, earnings will be higher, and maybe we have a vaccine area that doesnt we will have shortterm bumps along the way, but people are probably going to be higher a year from now than today. So dollar cost average into those stocks you think are in the stratosphere and you have missed if they have the propositions we just talked about and are not ridiculously valued. Home depot is up a lot, but it is still not horribly expensive. Anna i was reading some Research Today that cites the National Association of investors, talking about those who were previously bearish joining in this was joining in with this rally. Does that match with your bullish view of u. S. Stocks . Robert i am also in the camp that we are a little ahead of ourselves in the short term. Weve come a long way. Weve retraced the entire bear market. Earnings today are nowhere near where they were when stocks were at the alltime high in february. We have an election. We have a bill we cant seem to pass. Valuation levels are not particularly cheap. I can make a cautious case. I dont see big downside, but those who are a little nervous, if you have a ton of cash, youve got to step up and put some in, and my view. If you have been fully invested the whole way and want to dig a prophet or two, im on with that is all. If you want to take a on to or two, im that as well. Anna we talked about the virus ticking upwards in various parts of europe, and yet that doesnt weigh on your story. What do you make of europe . Robert it is the liquidity story for equities overall. The u. S. No longer has the interestrate advantage it had versus the rest of the world, and the u. S. Is the most offensive market in the world. So if you postulate that the globe is going to do a little better economically, nonus markets are probably going to do better. Then you layer on top of that the dollar, and we experience International Stocks do better. It is fairly cheap, and i think we will continue to do better here in the near term. Nuveen is a Venerable Institution looking at the longterm of investment. The leadership of Roger Ferguson is noted. What do you advise mr. Ferguson and others about the actuarial assumption that we are all going to live with . What is our actuarial assumption reality . Well, life spans we know are getting longer. I had a friend who retired recently at 65 and said, i guess i should go all in bonds. I said, wait a minute. Hes married, and they are both pretty healthy. At least one of you is going to live to 90. Dont run away from equities. Wheres no 25 year period stocks havent beaten up i think. The other actuarial assumption we have to think about is what is the longterm return for the additional for the traditional 6040 blend. It is not going to be what it has been. It is going to be much lower. That is the reality that these longterm Asset Allocation programs will have. The i am setting him up for second question. Bob doll, if that is the reality of a lower actuarial assumption, do you go more diversified or less diversified, or maybe more general . How do you diversify . To haveyou have diversification, but it is not just stocks and bonds. There are alternative assets that have to be considered in portfolios. Tia, big investor in farmland. That is an area for diversification. Within u. S. Equities where i spent my career, youve got to invest in companies that are going to make it happen. So you might want to make a more targeted portfolio in an where the market is not going to lift every boat. Tom robert doll, as always, thank you. He is with nuveen. These are really important changes we see. I could about to that headline i saw last year in the United Kingdom. I figure i was at the net across from our office is having a drink, and there was the my ial assumption over actuarial assumption. Extort mary extraordinary. We are just extending out and setting up. I get messages from a lot of listeners and viewers that trust me. Res never meant plan listeners and viewers, and trust me, there is no retirement plan. Dow futures up 45. The vix to me is a huge story, with a 21 40. Jon ferro has been great on on smallcap,tion international to domestic stocks. All i can tell you is maybe home depot, maybe walmart are the new faang stocks of the future. Just terrific numbers there as well. Dollar weaker. W. E euro, 1. 1905, wo this is bloomberg on radio, on television. Stay with us. Ritika with the first word news, im ritika. Bernie sanders all but begged his supporters to vote for a joe biden last night. Spoke on Opening Night of the Democratic National convention. Sen. Sanders if donald trump gets elected come out of the progress we have made will be in jeopardy. At its most basic, this election is about preserving our democracy. Ritika senders acknowledged that bidens Health Care Plan fell short of his vision, but touted the proposal nonetheless. President trump added a trip to iowa to his schedule today. His support has been slipping in. State he won by 9 when he 16 2016. 9 in the Trump Administration moved tocurb huaweis access chips. Trump says he doesnt want their equipment here because they spy on us. Canadas finance minister has abruptly resigned. That leaves trudeau with a major hole in his cabinet in the midst of a recession. His were place and will not be former bank of England Governor Mark carney, who has been advising trudeau on his economic ever plan economic recovery plan. The Worlds Largest retailer versus strongerthanexpected online sales. 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. I medicaid. This is im ritika gupta. This is bloomberg. Im sure there are republicans and independents who cant imagine crossing over to sapore democrat. They feared to support a democrat. They fear joe will turn left. I dont believe that because i know the measure of the man. Reasonable, faithful, respectful, and no one pushes joe around. Tom virtual Political Tension last night as the general one from ohio comes out for the gentleman from delaware, and support of Vice President biden. I am sure we will see much more of that. David westin and Kevin Cirilli with our coverage. Tonight, i believe that 10 00 p. M. , with continued coverage. Right now we want to see someone not so much in the trenches, but steep in policy and the changes in this nation. Smikle has a phd out of columbia, but hes one of the people that actually does. ,ots of people have a cable tv the hot air of politics, but others are out there doing it. Hes within the chart of hes within the Charter School system in harlem. You are all about the doing. Tell our viewers how the bidenharris team will do when they are elected. Basil that is the open question that i think yesterday did a little bit to answer. There was a lot of conversation about joe bidens character, empathy. What they tried to get across is that joe biden is going to be this empathetic, concerned leader that cares about everybody. That cares about folks across race, ethnicity, class, and of course, political party, in stark contrast to how others, particularly michelle obama, described the incumbent president , donald trump. Last night was a little light on actual policy. The most that you got was from bernie sanders, who talked about health care, and said joe doesnt really agree with some of the proposals i do, but i think we get closer to what we were planning if joe biden is in office. So very light on policy, beenugh i think, ive following him over the course of the campaign, it does look like there are going to be more progressives. But last night was a bit light on some of the policies. Tom so much of policy success is how you delegate within the process. How do you anticipate that widenharris that biden harris and their government will delegate if elected . Basil if you take last night as an example and Pay Attention to whats been happening throughout this pandemic, mayors and governors have had to assume a tremendous amount of responsibility for what they have been doing to address these issues without the federal government. I imagine that a Bidenharris Administration is going to have a better, closer relationship with governors and some mayors across the country then donald trump would. That is part of the message. It has been about cooperation and partnership, and that is due in part why you have people like governor andrew omo last night, the governor of michigan as well, talking about andrew cuomo last night, the governor of michigan as well, talking about that. So more cooperation, more funding support, less blaming and fingerpointing. Tom senator schumer now with a headline, talking about immigration. As will be in his speech tonight. You have lived what senator schumer is talking about. Harlemyou get immigrant and the immigrant harlems across this nation to actually shut up and vote . How do you get the turnout you need to win . Basil im a child of jamaican immigrants myself, so theres politics steeped in our household growing up. The truth is, every immigrant household understands this political moment. Theirnderstand that families have potentially been pulled apart. They understand and had come to that wethey understand are coming to this country for opportunities, to build this mrs. And companies. So the attack on them, they understand all too well what is about i think those who have become citizens like my parents are very eager to become part of the process. I dont think there is a family that has come to the country that wants to take art in building this nation that isnt really attuned to the urgency of this moment, so i applied senator schumer so i applaud senator schumer. I believe immigrant families are going to be mobilized in the selection. In this election. Anna good to speak to you today. If we look at the people in the middle of u. S. Society, the democrats are looking to convince them to come over to their camp and possibly stay in their camp. Which are the types of voters that have not yet been targeted, that the dnc and the democrats running up to november need to target to win over to the side . Basil i think there has been some concern in the Latino Community that not enough has been done to really engage those voters throughout this primary process. And i understand the concern about that. I also think the pandemic laid a huge role in that, and that we did really have a full primary season as we would normally have it. There are a lot of latino voters issues which pertain to the tenmunity that have not got full hearing. I think candidates are going to are going to have to look for the vote from suburban, older women, those votes that were in trump in 2016. You saw it in 2018 hopefully there is a replay in 2020. I think some of the republicans that spoke last night tried to address those very three moves. Le, thank you so much. Also want to talk about leadership in school. Futures up five, dow futures up 43. Tonight, david westin with our coverage of the Democratic National convention. It is a virtual convention. Saying hest out now, has real doubts about the modern wasntion, and said even impressed by the cadence of it as well area the cadence of it as well. Dollar with a further breakdown. You see it in dxy. Terling, 1. 3190 Jonathan Ferro is not going to be able to afford wait a minute, hes paid in sterling. Ferro is making out like a bandit. Sterling pushing 1. 32 right now. Ferro is going to be able to buy nation d bloomberg, coming up. Tom bloomberg surveillance. Good morning. Economic data with Michael Mckee. Markets are on the move. Report back from home depot and walmart. The dollar weaker. A new bout of weakness. Considers housing. Michael housing is big today. Overng starts up 22. 6 july. The number of Building Permits up 18. 4 . Low Interest Rates are making of a difference. That is no surprise to anybody. One of the interesting things we are watching is the number of singlefamily home starts. Singlefamily home starts up as well. All of this talk of how people want to move out of the city and get more room because they will be working from home. Much more demand from builders. Its like we are getting the kind of information from the report today. One other number. The new york fed does the empire survey. We talked about that earlier this week. They also do a services survey. This is a Service Economy in the united states. A big drop in the new York Fed Survey down to 17. 1. Businesses more pessimistic in august than in july. That fits the narrative the economy has started to stall again. Tom we welcome all of you. We will pause with Michael Mckee. What you people do not know is Michael Mckee and i met at a seminar at the National Association for business economics. I think nixon was president. We are at a seminar called mean reversion, totally dry statistics. I ask you this with great respect. Can we trust the Economic Statistics . I got the gloom of restaurants closed, bars closed. A great economist at moodys said it is a 14 unemployed america, that i got home depot up, walmart up, 97 and internet sales. These housing numbers that are a boom. They do not fit together, do they . Michael they do if youre looking at numbers like from home depot. People took their stimulus checks and because they were stuck at home decided to do remodeling and fixing up of their houses. There is the narrative that seems to be coming out of this. You can trust the housing data in terms of the story it is telling us. Interest rates, Mortgage Rates plunged to the lowest ever. More people want to buy houses so builders are responding. The question for walmart and home depot and others, now that the 600 extra unemployment payment has gone away, now that the 1200 payment has been spent, do we continue to see retail sales growth. We should get numbers from johnson redbook, the weekly Sales Numbers which gives us some direction this week. Last week they were down 3. 4 . Lets see if americans continue to spend. This is the backtoschool season. If they continue to spend or if your kid is not going back, do you buy her new close to where new clothes to wear. Anna, save me with the question