Manufacturers from foreign competitors. French president emmanuel micron is calling the attack of russian Opposition LeaderAlexey Navalny in assassination attempt. He is calling on russia to launch a transparent investigation. The comments came on a phone call with russian president Vladimir Putin as to more european laboratories found traces of a nerve agent. Navalny is in a hospital and is said to be improving. President trump started a process that could cut u. S. Drug costs. An executive order would tie prices to those paid by countries with National Health systems. Of ander falls short immediate cut the president has said would lower patients outofpocket costs. Global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Vonnie it is 1 00 in new york, 6 00 in london, 1 00 a. M. In hong kong. Here are the top stories on the bloomberg and are in the world we are following. Activity sending u. S. Stocks higher today. Fargo patel from wells Asset Management about how the fed is putting a floor on the market. Todayotable arrangement centers on oracle and tiktok, oracle edging out microsoft for the u. S. Operations of bytedance companies of the bytedance company. As we know, a preponderance of restaurants fighting for pandemic. Uring the Restaurant Owner and chef angie marge joins me to discuss her plans for keeping the beatrice inn in new york city going. Amid the restrictions. A quik check of the markets. It is monday and an up day with the nasdaq up more than 2 for most of the session. We are seeing the nasdaq up. Crude, one of the assets trading off on its own, down by . 10. A little more muted for the vix today, but still up 25. Joining us for more is margie assetswells fargo portfolio manager. Last week. Episode what was it . Is it something that will be sustained . Will it revisit us soon . Margie i think last week, we had a shortterm trading action in the market, but nothing has changed fund mentally. The fed has put a floor under the market by liquidity. They have made a commitment in many ways when they seek to prevent the Financial Markets from having an unwind, which would be precipitated by covid. So there is a floor under the market. And those zeros say to me there is room for pe to expand even though they are focusing on the price today, there is room for expansion because Interest Rates are near zero. Vonnie the fed can take a loss and then some and some more, but they cannot put people back in jobs where people are not typically able to work. Service industries are closed or a quarter capacity and someone. What happens when Companies Just to feel the lack of demand that will presumably happen at some point . Margie well, i am not so sure that will happen, because the feds actions are very stimulative. They provide Unemployment Insurance for millions of people. And come although we could say that job growth is slower than we would like, the fact is could meet month, more and more people are getting jobs. As we work through that, that says there will be more japan more demand to support the economy. And in some segments of the economy are doing well. The Auto Industry has started to rebound. That alone would increase the employment numbers we are seeing. So it looks like we are seeing sustainable uptrend in the economy, and i would expect that to continue even though if we have some ups and downs in the covid situation. The market fundamentals are improving. Vonnie is there even a need at the margin for more stimulus, then . Margie it is hard to say. The fed has done a lot. Treasury rates, except for the 30 year, between practically zero and 75 basis points. They provided liquidity to financial sectors. I think they have done all about about all they can do. Some people are worried we may see inflation pick up and they have been very clear they will be tolerant of inflation going above 2 before they need to act. Thats as the doors are wide open and they are there to support the market in that level from the monetary actions, and that is really all we need. It looks as if companies are beginning to real vitalize are begin to revitalize and selfhealing. Vonnie ok, margie. Hi yields, one of your areas. The spread of the moment. What do you make of it . Margie i think highyield spreads are likely to get narrower. We have had a pickup in defaults, but if you look at where the defaults are, they are in vulnerable sectors, energy, retail, for example, some parts of travel. Away from those sectors come the highyield market looks very good. Buyers are still very receptive to buying higheryielding securities. And Many Companies have been able to finance, in advance of maturity, and providing liquidity on their Balance Sheet in case we have a slowdown in the economy. They can sustain themselves through another bad period, all of which says Balance Sheets are in great shape. We are not going to see defaults away from those vulnerable sectors. Vonnie does that presume the economy does recover in pretty quick time . Margie we are really in pretty good shape. We are certainly better than the bottom of the market in 2008. We fell into a deep hole and gradually consumers are digging their way out. I would say, for the 80 of the economy, of people who are lucky enough to have jobs, things are pretty good. You can see that in consumer spending. I think we will continue to see the market build on strengths. Each month will be a little bit better. And even when we do not have a might give ak that vote of confidence and help the economy have a little bit of acceleration. The bottom line, the economy is in pretty good shape. Typically the economy goes down when the fed tightens. That is not happening either. We are seeing the economy going up. Of a are classic signs good backdrop for Financial Markets. Vonnie i just have to say that i am dumbfounded. You see pretty positive growth. What is your gdp forecast for next year . Margie as i said, the attractive parts of the market, high yield, will be continue to be attractive for the fixed income investor. Those spreads will narrow because defaults from nonvulnerable sectors will go lower and the equity markets will have a surprise on the upside. There earnings in the Second Quarter actually surprised the market. They were quite strong. I think you will see that trend continue building in the third quarter. Strengths building on strengths should allow the price earnings ratio to expand, in addition to earnings increases. We should have a surprisingly good market, surprising because there are so many naysayers on the economy, thinking we are in something we will never get out of. Vonnie we shall see, and thank you. Patel, Portfolio Asset manager. Tiktok, digging into the details next. This is bloomberg. Vonnie this is Bloomberg Markets right here. I am vonnie quinn. Time for our stock of the hour. Shares rising after the company confirmed it has made a bid for the operations of tiktok in the u. S. , thats oracle. It is a little more convoluted. Lets get to kaylee lines. It will not be in out right sale. Unlike microsoft, which oracle has edged out, it is not trying to by the u. S. Operations are right. This would look more like a partnership, restructuring for the top u. S. Operations of tiktok, with oracle hosting the to, but tiktok being able maintain control of its allimportant algorithm. The issue here is that this is a long way to go. This would require approval by both the Trump Administration those ai,g given algorithmic questions beijing wants to protect. The treasury secretary was speaking on cnbc earlier. He said it will go through a National Security review this week and he will make a recommendation to the president , who has until sunday to decide whether or not to sign off on this deal. China a part of that equation as well. The fact that there is more of a restructuring may make it more attractive to beijing, given that control over the ai, but maybe less so for the Trump Administration, which has been pushing, really, for a sale. Even if this does go through, the question is what does this give oracle . Why did they want these assets so badly . That is a question for analysts today. You have one analyst at citigroup saying they are struggling to find a rationale for oracle focusing heavily on notok, given that would provide a major boost to its cloud operations. It can provide a minor boost, but not enough that oracle will be able to come in and compete with Major Players in the cloud like amazon or microsoft. Vonnie there is another Company Involved and that is walmart. It is specifically looking at one portion of tiktoks operations. Walmart and microsoft were originally partnering in their bid for tiktok. That was a losing bid. But the Chinese Media outlet is reporting that walmart may be partnering with tiktok in the ecommerce section according to people close to bytedances executive. Walmartsgoes to show focus on digital specifically, that ecommerce. We did hear from walmart saying they are interested in a tiktok investment, but they recognize any kind of deal would still have to go through those regulatory hurdles. It is that regulation that remains the key question vonnie. Vonnie great. Thank you. That is kailey leinz with our stock of the hour, today it is oracle. Still ahead, the challenges for the Restaurant Industry with angie mar, executive chef and owner in the village. She is coming up. This is bloomberg. Vonnie this is is Bloomberg Markets. I am vonnie quinn. New york city will reopen Indoor Dining at the end of the month with 25 capacity. But does it come near enough to help the industry . Even if those restaurants are willing to open. We will ask with someone familiar, chef angie mar, owner of the beatrice in in new york city beatrice inn in new york city. We spoke to you toward the beginning of the pandemic. It was very difficult and uncertain. It has been several months now. There is finally a green light for some kind of indoor reopening. Just tell us how you are feeling and how you have navigated the last six months. Angie it is a pleasure. The last six months have been everchanging. The last time we spoke, i told you that i was in the midst of pivoting my business. Going from a fine dining restaurant to doing solely take so overnight, you know, definitely a lot of changes. We have been able to open up for outdoor dining, but even at that regular15 i of our could only 50 of our regular capacity. 15 of our regular capacity. And we have limited operating hours. We were open until 1 00 before. So definitely reduced revenue, but we are very excited that it is 25 dining. It is a step in the right direction, but i still maintain my stance that it is just not enough. Vonnie i mean, just give us some of the details, because it seems to me like 25 capacity means you might even be operating at a loss. Have you had to lay off staff . Will you be receiving ppp funds . Angie yes, we have had to lay off staff. I am operating at not even 50 of the amount of staff that i had before. It is probably about 40 of the staff that we had before. Dining, youw, 25 know, i think most restaurants will be operating at a loss. The industry is a fragile one. And, you know, restaurants run on incredibly tight margins to begin with. So to say we are only able to do 25 capacity and still operate, you know, on a reduced amount of hours, you know. And no bar business. No bar business. That is a huge, huge loss for us. C were not just looking at it when he 5 capacity. So we are not just looking at a 25 capacity. Youre talking but a huge revenue stream. Vonnie restaurants are operating independently, have had to go into their savings to keep things going. At what point do you decide it is make or break time. I may actually end up not doing this anymore. Angie it is different for every business. I can speak from my experience, where i have put a huge amount of my personal savings into this restaurant to keep it going. You know, obviously there is ppp money, but it is just not enough. The real big question is what do we do when the ppp funds run out . You know, so, in addition to using those funds, i put my own personal savings and it. The bigre still question becomes, you know, what is the government doing to navigate the ongoing conversation between tenants and landlords . I think that, you know, in new york city definitely, i think that among the landlords it is very much split. You have a lot of landlords that are new yorkers and really understand the dining industry and the importance of, you know, we are all in this together. And then you have the other half, like my landlord, which are handfoot which are hedge funds based out of california that really only care about the bottom line enter depending and are demanding 100 of the rent. For restaurants like mine, they have landlords like we do, it has been a huge struggle. And i honestly do not know what that is going to do to the landscape of the dining scene in new york. It is tremendously unfortunate. Vonnie it is fascinating, because as another Restaurant Owner told us, it is not like people are lining up to move restaurants in should you move out. It is strange to think there cannot be some kind of medium ground. Our independent Restaurant Association is speaking to washington, d. C. Have you heard back . Any progress on any kind of package specifically aimed at restaurants . Angie i think it is really unfortunate that there has not been more progress on the restaurants act. Independent restaurants need funding and that is the bottom line. And we cannot continue to operate just solely on ppp money, which will run out very soon. And for many of us come it has already run out. Many of us, it has already run out. And operating on limiting capacity limited capacity and having no restrictions on landlords demanding the full rent. This is an industry that generates billions of dollars of revenue a year, and, for the most part, the majority of us feel that, you know, it has been brushed aside by washington. Vonnie angie, are you happening are you happy to open even at 25 capacity . Are you worried about reopening, even just safety wise . Angie i absolutely am so happy to be reopening. You know, it has been really wonderful for us to be able to continue to serve our guests, from take out to delivery to the reopening of outdoor dining, and we are looking forward to opening up our doors because hospitality is what we do. So, for it, there is that aspect to it, but as far as the business end of it, it is going to be a very, very difficult, you know, next year, maybe even two years, because i do believe that is what it is going to take for our industry to recover. Vonnie chef angie, please do keep us posted on the progress. We are all rooting for all of those independent restaurants, including use. Angie mar, chef, owner of the beatrice inn in new york city, thank you. One vanderbilt is located across from Grand Central terminal and many new yorkers are still at home. The buildings owner, green realty, estimates 72 of the space will be occupied by year end, though. We spoke with president Mark Holliday about that. I have every confidence in the world, speaking to believers of the businesses that for my portfolio, that they all want to be back. A lot of tenants are coming in in the month in the next month or two. We have thousands and thousands of employees already back in our building portfolio. They tell us they feel safe, satisfied, good morale, and are happy they are back. Sl greenhat was president Mark Holliday. Coming up, we discuss the latest of oracles pursuit of tiktok. We will be checking markets for you right now. Lets take a look at where we stand. The Dow Jones Industrial average is up about 1. 1 . At 3383. 00 up 1. 3 a big day in terms of the landscape. Also verizon making a deal today, buying the prepaid operations of american mobile, the carlos slim operation in mexico. Verizon is up 1. 25 on that deal. The nasdaq is the leader today, up 1. 5 , off its high of the session. The 10 year yield at 66 basis points. Oil about . 10 lower in the 37 region as well. We will be speaking about tiktok coming up. Also, u. S. Tennis open. Dominic thiem on his way back from austria, winning five sets, including a tiebreaker. Mark i am Mark Crumpton with bloombergs first word news. Global coronavirus cases surpassed 29 million as india, the epicenter of the pandemic, reported more than 90,000 for a fifth straight day. Countries ranging from iran to the Czech Republic are reporting arise in new infections. Gatherings in the u. K. Will be restricted as new cases climb at a pace not seen since may. Israels cabinet has backed a Second National lockdown. The opecplus coalition meets online this week to consider what it can do to rescue the oil market in the midst of the pinned emmett. Allies areand its seeing recovery stall. Prices slipped below 40 a barrel last week for the First Time Since june. Oracle has confirmed it is part of the tiktok proposal submitted to the u. S. Treasury department. The proposal calls for oracle to be the trusted technology for the viral video apps chinese parent bytedance. Phen mnuchin explained the u. S. Ambassador to china is retiring to the campaign trail. Terry branstad is stepping down next month. He is the former governor of iowa. President said branstad would be returning to campaign. Senator joni ernst is an Iowa Republican whose close reelection battle could help determine who controls the senate. Global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journa