geraldine sundstrom of pimco stays with us. coming up in the next hour, we look at fx with abraham rabaa rahbari.h ebrahim that is 10:00 a.m. in london. the cost changed in europe but not in the u.s., so it is a bit of a quirky week. this is bloomberg. ♪ tom: good morning, everyone. bloomberg surveillance. london, tomqua in keene in new york. worser -- markets that is a sophisticated term? worser. geraldine sundstrom of pimco, we have been talking about the dynamics across assets in particular within the fixed income space. i need to understand -- and this goes back to mr. gross sitting in the basement of the pacific investment management company, putting coupons as his first job with pimco -- this is a few years ago -- i want to go back to the idea come as you stagger into 2021, how you clip a coupon or find total return. how do you do it? geraldine: in terms of fixed income, we favor the high-end u.s.,afe haven, like the australia, or canada, which is a high currency bond with a coupon. probably one place to start. i would

tom: andrew, thanks so much with pimco. see that out on pimco on disruption. dean will join us here on this columbus day on volatility, and things have changed. we finally come in from 29 level. with futures up 13, maybe we'll migrate to eight when he for handle. dean, a path to an 18 vix. stay with us. a nobel prize in economics in our next half hour. this is bloomberg. ♪ ♪ corinna: this is bloomberg surveillance. i'm corinna mitchell with the bloomberg flash. to company is looking resolve lawsuits from thousands of patients. it's vowed to fight claims it vowed to overcome the -- move towards settlement. and it is the biggest takeover this year in the banking industry. todi arabia is bank agree buy it for $15 billion. and that is your bloomberg business flash. francine: thanks so much. coming up, a university professor of anthropology will talk about covid, how we track and trace it and some of the pitfalls that we've seen certain countries do. [indiscernible] a number of infections rise in the u.k., possible sanctions announced by boris johnson -- restri

jack: we just heard from libby cantrill on how pimco preparing for the election. of our, the people we surveyed, 56%, i think, said joe biden would win. last year, four years ago they thought clinton would win, so i don't know if that's a good gude. but are you doing anything to prepare for the election? >> you know, we are holding in the place our positions related to cyclicals over defensives. and in our approach, we want to own technology, industrials, consumer discretionary. and our contrarian pick, financials. when it comes to the economy, we think it's all about -- when it comes to the market, we think it really comes down to you have to look at policy at the federal reserve and economic performance. so we think whichever party wins, we think we're going to have a fairly good market as we get covid in the rearview mirror and we begin to see the processes of moving towards a sustainable economic recovery stateside. jack: you mentioned the industrials. what appeals about that sector when everybody else focused on sexy technology companies? >> jack, industrials

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jack: we just heard from libby cantrill on how pimco preparing for the election. of our, the people we surveyed, 56%, i think, said joe biden wouldin. last year, four years ago they thought clinton would win, so i don't know if that's a good gude. but are you doing anything to prepare for the election? >> you know, we are holding in the place our positions related to cyclicals over defensives. and in our approach, we want to own technology, industrials, consumer discretionary. and our contrarian pick, financials. when it comes to the economy, we think it's all about -- when it comes to the market, we think it really comes down to you have to look at policy at the federal reserve and economic performance. so we think whichever party wins, we think we're going to have a fairly good market as we get covid in the rearview mirror and we begin to see the processes of moving towards a sustainable economic recovery stateside. jack: you mentioned the industrials. what appeals about that sector when everybody else focused on sexy technology companies? >> jack, industrials t

geraldine sundstrom from pimco stays with us. breaking news, france, portugal, and other countries, we understand this is a technical fault, so we will bring you any breaking news when we know this technical fault is fixed, and of course when it will be reopened. for the moment, do not look at any of the trading coming from euronext, because portugal, the netherlands, france are halted today. coming up, we will have more with geraldine sundstrom. we will talk about president christine lagarde in an interview. d rallies as investors take note of more aggressive ecb policies. that is next, and this is bloomberg. ♪ d this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. over the last 15 minutes or so, we were told that euronext was having technical difficulties, meaning some of these stocks were halted. this is true, for example, for all of the euronext stocks. france, portugal, others do not at the moment have live trading. l'oreal and others are amon

jack: we just heard from libby cantrill on how pimco preparing for the election. of our, the people we surveyed, 56%, i think, said joe biden would win. last year, four years ago they thought clinton would win, so i don't know if that's a good gude. but are you doing anything to prepare for the election? >> you know, we are holding in the place our positions related to cyclicals over defensives. and in our approach, we want to own technology, industrials, consumer discretionary. and our contrarian pick, financials. when it comes to the economy, we think it's all about -- when it comes to the market, we think it really comes down to you have to look at policy at the federal reserve and economic performance. so we think whichever party wins, we think we're going to have a fairly good market as we get covid in the rearview mirror and we begin to see the processes of moving towards a sustainable economic recovery stateside. jack: you mentioned the industrials. what appeals about that sector when everybody else focused on sexy technology companies? >> jack, industrials

that is libby cantrill of pimco. o. mark: six people have been arrested and what the fbi says was a plot to kidnap gretchen wetmore -- gretchen whitmer. it involves recruiting michigan militia as part of a plan to overthrow the state government. she was once considered a top contender for a running mate for joe biden, but has become a target for conservatives who said her statewide order's to wear a mask violated their rights. and pushing back the second and third presidential debates by a week, after the president said he would not participate in a virtual event. the binding campaign official p's erratic behavior does not allow him to rewrite the calendar and pick new dates of his choosing." they really propose shifting the debate to october 22 to accommodate the recovery of the president from covid-19, making that the final debate. more than a dozen people were in

of pimco portfolio strategies michael plan to thank you both for being here michael i want to start with you today government debt the government data on thursday showed a record setting rebound in economic output as we just said growing at its fastest 3 months ever but this is quite misleading as unemployment is still pretty high and demand is being depressed so how should we interpret this data point at this time. well the unemployment rate is still 8 percent so i'm not going to send skyrockets up about this state a look i'm not a republican i'm not a democrat i'm a libertarian so i'm going to give you the honest truth if an economy crashes because you shut it down in the 2nd quarter and you open everything up in the 3rd quarter guess what you know we're big short rebound where the sharpest rebounds in fact the sharpest rebound in history but you won't hear the republicans talk about how to crash the most in history during q 2 here here's the man we're still down 2.9 percent in g.d.p. year over year and there's a spike and then drinkin over 3 trillion dollars through hell it's not the

of pimco portfolio strategies michael plant thank you both for being here michael i want to start with you today government debt the government that on thursday showed a record setting rebound in economic output as we just said growing at its fastest 3 months ever but this is quite misleading as unemployment is still pretty high and demand is being depressed so how should we interpret this data point at this time when the unemployment rate is still 8 percent market skyrockets up about this state a look i'm not a republican i'm not a democrat i'm a libertarian so i'm going to give you the honest truth if an economy crashes because you shut it down in the 2nd quarter and you open everything up in the 3rd quarter guess what you know we're big short rebound where the sharpest rebounds in fact the sharpest rebound in history but you won't hear the republicans talking about how trashed the most in history during q 2 here here's the man we're still down 2.9 percent in g.d.p. year over year and there's a spike and there's been drinkin over 3 trillion dollars through hell it's not the money and

of pimco portfolio strategies michael plant thank you both for being here michael i want to start with you today government debt the government that on thursday showed a record setting rebound in economic output as we just said growing at its fastest 3 months avar but this is quite misleading as unemployment is still pretty high and demand is being depressed so how should we interpret this data point at this time when the unemployment rate is still 8 percent. skyrockets up about this state a look i'm not a republican i'm not a democrat i'm a libertarian so i'm going to give you the honest truth if an economy crashes could you shut it down in the 2nd quarter and then you open everything up in the 3rd quarter guess what you know we're big short rebound where the sharpest rebounds in fact the sharpest rebound in history but you won't hear the republicans talk about how trashed the most in history during q 2 here here's the man we're still down 2.9 percent in g.d.p. year over year and there's a spike and then drinkin over 3 trillion dollars through hell it's not the money in handing it out

to talk about this, a sovereign credit analyst at pimco. thank you so much for joining us. i don't know how you look at the fixed income space overall. by,hina were anything to go is a recovery going to be quicker than expected? >> i would say yeah, the chinese rebound has been stronger than elsewhere. pathld say china is on a that is probably better than other places for a couple of reasons. china had an effective response to the crisis. they had a very strict lockdown but then they got cases under control relatively rapidly. china is oriented towards production of goods where there has been high demand. think about ppe and sanitary products. all of that glitters is not gold however. if you look at chinese consumer spending, of the recovery has been slow. i do not think we can use china as a barometer for elsewhere. we view a slow recovery elsewhere. which could end up fueling some geopolitical tensions which are already in place if china tends to do better than others. francine: are you thinking about trade wars being back on the horizon and what does that do to central b

pimco writes that can perhaps of stimulus looks very likely dead until january. and the macro picture remains challenged. the latest data shows inflation remains tame despite the feds. best efforts to push prices higher. and the imf says the global recession will be lower than forecast. so in this new normal, you look at what sectors are outperforming and underperforming, the worst three performers are all cruiseship operators in the s&p 500. one of them is trying to raise a billion dollars in bonds. that will dilute existing shareholders. this is crews ships in the u.s. remain docked. delta is leading airlines lower after third-quarter results is appointed, also delaying $5 billion in jet deliveries. wise splash out on increasing supply when demand is still pretty low? david: not good for cruise lines. what about banks? we started with j.p. morgan and citi both surprising with the upside. looks like they are doing pretty well scarlet: they were doing well operationally. people were expecting they were provisioning for bad loans but they were very aggressive in t

tom: i love the idea of pushing against the pimco religion of new normal. what does it mean forward? chris: the old normal, if you like, it is kind of what goes around, comes around. the thing i like about economic theory is it changes all the time. people get stuck on one theory, but the reality is the world changes, and you need to use different theory to address it, which is kind of what we are thinking about in the old normal, going back to where you were. what it means here, it is amazing how much cash has amassed on balance sheets. in some ways it is amazing. it some ways it isn't. we've had amazing transfer from the government to the household sector globally. it has been biggest in the states, where you had the extra $1200 checks. we are going back to that theory of helicopter money. it is clearly in play, isn't it? you've got americans with over $2 trillion now extra cash on their balance sheets, which is really quite something. tom: your research note is extraordinary on that. we are up to our eyeballs in cash. what will be the catalyst for someon

public policy at pimco. it's great to see you. let's just talk about both of these candidates, and specifically their tax plan and what you think it would do to the economy and i think it's important when we talk about the tax plan to also talk about the spending plan on the other end of it, because specifically, at least in the biden case, while there's taxes that are going to go up, there's also going to be a ton more spending and how you as an investor, and how the investment community should think about that >> yeah, yeah, thanks, andrew, nice to be with you. obviously i think that the picture is going to look quite different in biden were elected as it relates to both taxes and to spending. spending, as you mentioned, i think this is one of the reasons why the market has sort of swooned over the last few weeks or so. is there's an expectation for a lot of government spending, a lot of fiscal stimulus not only in kind of a covid relief bill. that's obviously being negotiated right now on capitol hill, but a big infrastructure