London mayor sadiq khan is set to recommend more restrictions. Bruised. Leaked documents related to troop 2 trillion in transactions, showing banks profiting from powerful and dangerous actors, even after the u. S. Introduced penalties. Low inlls to a 25 year hong kong. Plus, pet review. The eu starts an evaluation of a pandemic bond buying program. Policymakers are expected to discuss how long they should continue as well as whether or not they should widen the rules for older programs. Just an hour away now for than the start of from the start of cash equity trading in europe. Lets look at where markets are pointing us futures are pointing us. A drop in asian stocks. Ftse futures off one full percent. Concern of course about further or another renewed lockdown driving that market down further than the others. You see dax futures up 0. 8 . Look at u. S. Futures, not down as much right now. Looking at a drop in u. S. Across the s p, the dow, and the nasdaq, about 0. 5 right now. Anna futures on the retreat. Lets look at the gmm. To the downside dominated the markets overnight. The msci asiapacific pacific down 0. 4 . South korea, china, australia, all looking weaker. We saw a bit of a recovery in trade data. That has taken the edge off the south korean won. The kospi under pressure down by 0. 9 . Crude fairly steady in terms of the picture for commodities. More sizable moves in iron ore and steel. Japan is closed. Keep that and mind looking at treasuries and what we see there. Dollar has a bit of the Asian Session under pressure. It is down 0. 1 on the bloomberg other index. Index. Llar. He ongoing tiktok story questions over stimulus in the United States. A lot to talk about with our colleague in just a moment. Before we talk, lets talk to laura right. Laura . Are mounting the u. K. May need a second lockdown to stop the spread of the coronavirus. Forrest johnson is said to be told today the nation is at a critical point in the pandemic. There are expectations local restrictions could be extended to london. Mayor sadiq khan will recommend tightening rules today. The death of Justice Ruth Bader ginsburg puts the Supreme Court into the political spotlight. Republican leaders are hoping to rush through the replacement with donald trump expected to nominate his pick this week. Democrats are warning of a constitutional crisis if joe biden wins the election but trumps candidate is the confirmed one. Donald trump is threatening the tiktok deal. The apps chinese owner will have an 80 stake. The white house gets a u. S. Headquarters on the promise of new jobs. Isrces tell Bloomberg Tiktok seeking a valuation of 60 billion as part of the u. S. Deal. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Matt thanks very much. Laura with your first word news. Lets get to laura cooper now for a look at markets. Lets start with the story laura finished with. Your question of the day, how will the oracle tiktok deal affect markets . My first thought was i cannot imagine it would. Will read Donald Trumps reaction as favorable . You see this, how do clients see this . Why would markets respond quite significantly to this . The fact we are seeing nasdaq futures in the green this morning is pointing to some signal that maybe markets are taking some reprieve. Ultimately what we are seeing is , this correction in tech continues to expand. That is unlikely to be shaken from this deal. If anything we are seeing a rotation of economic Recovery Efforts away from tech valuations. We should see cyclicals start to catch up if we do see signs of fx recovery in the u. S. Continue to be sustained. I do not think any reprieve on this tension in terms of u. S. China tensions is going to spark a catalyst in terms of providing that room for tech to outperform once again. Are on so many fronts we waiting for the election, building up to it, anticipating trying to work out how that impacts various new agenda items. Let me ask about stimulus in the United States. That is something some guests tell us. The closer we get to the election, the less likely we are to see any fiscal input into the u. S. What are you hearing . Case. Hink that is the the fact we had the death of Ruth Bader Ginsburg over the see bipartisan political frictions. Because the u. S. Economic recovery effort and a lot of the upbeat data we have seen has been predicated on this injection of stimulus to the begins tonce that show true, the fact we are seeing a significant lapse in that, that could begin to weigh on risk assets. I would expect heading into the election we are going to see this period of significant volatility begin to emerge in markets. It has been propped up by stimulus efforts. It is going to be clear this week. We have powell testifying. It will be clear theres going to be this need for fiscal stimulus. Thats going to shine the spotlight on the fact we have this gap. Thats going to be quite precarious for markets going forward. Matt i wonder what you think about the ft report. The ecb is talking about how much longer to go with this extraordinary coronavirus measures. Maybe more importantly, whether the looseningden of the rules to older programs. The report was quite surprising. Indo have this pet Program Place until midnext year. Market consensus is we are likely going to see upsizing in that. Particularly the fact we are seeing this resurgence of virus cases in europe that could require greater stimulus. Like you mentioned, the key takeaway is the fact that if we could see this flexibility itvided in tech purchases, is allowed to deviate from capital keys, if that is extended to the Asset Purchase Program in general, that is quite a significant development. That could suggest this program could be in place for longer. I think this is challenging. It is likely to bring renewed fiction friction. Does point think it to frictions going on within the ecb. It has yet to come through in terms of whats next to their policy path. Laura, thanks very much. If you want to get involved in the question of the day, around oracle, tiktok, or give us your broader thoughts, get in touch. Ib tv is the function to use on your bloomberg. Next, does the rebound have legs , or our valuations too high . We will talk. Anna still over 45 minutes into the start of the trading session. We are expecting a bit of weakness. U. K. Futures and talk of further restriction on daily life spreading in the u. K. , that is putting the u. K. Market under a bit more pressure. Equities have set to start the week on the back foot. Lower. Tocks have been deaths from covid19 approach the 200,000 mark in the u. S. London is on the brink of a second lockdown. We are joined now by the cio of emaar. We wanted to talk to you about the bull case versus the barricades. I look at what you sent me this morning around how expensive u. S. Stocks look at the moment, it makes me worry like it is 1999. How concerned are you around valuations . 1999 deed. You cannot make a valuation case. A lot of the floating is particularly u. S. Equities. Function of liquidity. You cannot say it is anything other. You walked into an 11 year expansion. This year, with bullishness by certain analysts. For whatever reason you have a levitating rest stockmarket basis. Corporate debt, your credit havets, states of people continued to plow money into u. S. Equities. Putting a limited number of mega cap tech stocks. Does it make sense to you indexes will underperform in regions that have done a worse job dealing with the coronavirus or that have been hit harder for some other reason . Changes onour today European Equity indexes and i note the ibex is down 25 . The ftse is down 18 . The dax is up 5 . Is that because of the covid implications . I think it is. , you weret was clear going to do better if you did a better lockdown. There is no question that has played out in the market. European equities, people forget they are widely owned externally. It is a largely domestic stock market in the u. S. You have lots of retrading. There is no particular reason to the valuations are miles apart. It is a 70 year gap in u. S. Equity versus European Equity valuations. There will be those that say the u. S. Market no longer reflects the u. S. Economy. That is a fair point. The tangible assets versus intangible assets is 80 tangible. In terms of what is embedded in pricing. Price point. Be a for some of the not necessarily the mega caps. , thises just below them is very 2000 again. Of revenues priced in. These internet disruptors. Now tech stocks apparently. This is what people have to be nervous of. Trading perhaps, but seriously by those who are infused by these things. I think the rest of us can recognize. Annmarie anna helping the bear case is the geopolitical tensions, whether the technology between china and the u. S. , tensions between the u. S. And iran, the u. S. And china over around. Over iran. Are investors going to wait until november and then take stock . A lot of professional , people dedicated to managing money for a career, are fully invested. I think that remains the case. , a very highoblem likelihood of a contested election is starting to come on the radar. People are getting nervous. The biggest trend we see is some parts ofzing , theychnology space should think about whether they should be somewhere else. Uy very cheaply. They are expensive sectors. Make is anvestors logical one of the value, whatever that means. Plain, vanillas stocks. ,asic kind of companies recurring revenue kind of companies. They are expensive. The tech sector is expensive. People are rotating. Part of that is again not the u. S. You can make a strong case regardless of the motivation for the very near term, the tech becauseive has to be they are stunningly expensive by most metrics. Sick with us. We will get more from peter toogood. We will also talk about nikola s founder. The public face of the embattled electrical vehicle startup. It will be an electrical Vehicle Company eventually. Step down as the company is facing an sec probe. Annmarie anna welcome back to the European Market open. Futures suggest downside. Talk about further restrictions in london and more broadly across. The ft reports the central bank will decide how long to continue the scheme and whether its flexibility should be extended to other qe programs. Oogood is still with us. How much of a game changer can these moves be . Corporate debt underpinned by support from Central Banks. Do you see the ecb reviewing this program . How big a fan are you . It is inevitable. Fingers crossed they do. We need all the support we can get. It would be good to see the european to the fullest extent they possibly can. Europes challenge remains the same. You have continuous challenges. And the authorities recognize we are effectively in a set up, the more they can think about supporting the market. The ecb has had a previous track record that is not reacting quickly enough. They realize they need to be on the front foot, which is encouraging. You tend is a longerterm investor to think about im just trying to be realist. Masse going to have participation in a vaccine halfway through next year. The vaccine is not the answer to the question right now. We have to provide as much support as is practical. Big news in the ecb for motivating us. Be concernedwe about the report banks were doing trillions of dollars with they likelyh people knew they should not be dealing with . Or do you think the reports are blown out of proportion . Think that is just profitseeking behavior to be expected . It is a bad look for everybody. The banks are under enough pressure. Regardless of this particular storyline, it is hard to make a case for banks with Interest Rates at zero, the u. S. Economy may be different from japan, but for Interest Rates to be flatlining, it is zero for what amounts to years, the Federal Reserve invited the main banks to the party last week. It is very hard to make a sustainable case right now. I suspectt another nail in the bank coffin to be blunt. Anna on the subject of Balance Sheets, you sent a nice graphic this morning that shows how intangible assets on Balance Sheets are looking pretty high. Sheets, 60 in the mid90s. What does that mean for you . With thethe problem constant argument on valuation. The cheapness of value stocks. We are all using metrics of 20, 30 years ago. The fact of the matter is it is all intangible. What does alphabet to with this Search Engine . What does facebook do with its advertising . Intangibles. The growth and value seems a bit glib. Gdp is whatigh value responds to in global terms. That is not happening anywhere soon thinks to covid. Interest rates are already zero. It is support programs all around. Very hard to jump into value. I will get back to my point again. Valuations coming into the u. S. Were egregious. We have a worse economic environment. That is the real problem investors are facing. On. Have this cycling going markets really not progressing anywhere. Matt thanks so much for joining us. Appreciate your insights. Thanks forod, joining us. Will we see another lockdown in london . Sadiq khan will recommend tighter measures today. Anna futures continue to point to the downside. Investor opinion worsening as we head through the past half hour. Now for our morning call. Goldman sachs say value shares are a better way to bet on a covid19 vaccine then cyclicals. Juliette saly standing by. We know value has been doing so well so far in september after underperforming of late. We see the 1000 value index on track for its best month against the 1000 growth gains since march 2001. Goldman certainly backing this trade saying we start to look toward catalysts for a vaccine, value stocks have short duration cash flows, so will outperform versus cyclicals and defensives which have similar durations on average. Vaccine withof a value. When it comes to some of the semiconductors with retelling of the lowest correlations. In terms of this value trade, tailwind factor is the to value according to strategist. Time for value to shine, perhaps the russell 1000 value index only has about 7 since the end of 2016. The growth gauge has more than doubled in that time. Matt interesting that tobacco has a high correlation with a vaccine odds. You are getting a call from socgen on the pound. What is the story . See this as we start to the likelihood of negative rates coming from the bank of england. Saying the prospect of below zero rates could actually realhe fairweighted tradeweighted value of the pound fall to a record low, suggesting this coupled with a no deal brexit would lead to a 4 fall in the value of sterling against the dollar over the next months. This is a call led by socgen which says negative rates are more likely to scare away investors and soften the low. They say the best way to trade this likelihood as we start to factor in the prospect of negative rates from the bank of england is through gdp and jpy shorts. That is their favorite way of a short sterling trade. Matt thanks very much. Juliette saly in singapore. Lets get the Bloomberg Business flash now. Bankslobal crackdown on does not seem to have curbed specific suspicious activity. Billionn 2 dollars in transactions after the u. S. Penalize them. The files were released by investigative journalists. A whistleblower at boeing is urging aviation regulators to add additional protections to grounded 737 max. He says the proposed fixes do not address multiple hazards. The faa has to review more than 160 comments filed before deciding whether to approve the planes return to service. Theld trump is celebrating tiktok deal despite it falling short of his key demands. The chinese owner will still have an 80 stake in the new company. The white house gets a u. S. Headquarters and the promise of new jobs. Of 60is seeking a billion. Billion. Tion of 60 nikolas founder is ng withng, leavi immediate effect. You have been following this extensively for a long time. Why is he leaving now . According to the company and according to milton it is because he does not want to focus to be on him. He wants the focus to be on ni kola and its lofty ambitions with regard to clean energy vehicles. Bloke bloomberg broken news looking into a short ander which alleged nikola another company had been involved. Company had not really communicated at all until about half an hour ago. Rationale. They want to be focused. A change of leadership allows them to do that. Matt what does this actually change . Leaves, it does not mean they all of a sudden have this proprietary technology everybody wants to get their hands on or experience in building vehicles of any kind. Two answers to that. The first one is that investors and wall street in particular have struggled to keep up with trevor. Lot. S previously tweeted a he takes to instagram regularly. Madee past he has announcements about Companies Technology or strategy or its plans before the company has officially communicated it. He has also made contradictory statements which i have written about over the last month. He has confused investors on the earnings call. Took the opportunity to say what is your communication policy . It is difficult to follow whats going on because of tweets. The other part is that because of this policy of taking to social media, sometimes in a way that contradicts official statements, investors have found it hard to understand the core of business plans. They have all the target data for different vehicles using different technologies. Fuelcell trucks in arizona by 2023. This pickup truck built with. With gm. I spoke with one of the large Institutional Investors and he was making the point that the business is all about hydrogen. Hydrogen fueling infrastructure. The trucks is just a mechanism to bring that to fleets and buyers of commercial vehicles. That has been the story. It has been difficult for investors to understand them. I think the hope is there will be clarity now and a different policy with regards to how the company communicates. Anna thanks for bringing this story. Ed ludlow bringing us the latest on nikola. Next on this program, asking prices in u. K. Property rights the most since 2016. Of support hast gone into this industry, is it sustainable . Anna welcome back to the European Market open. Futures suggesting a weak start to trading. Part of the reason comes to our next story. London could be heading for another lockdown. Recommend local restrictions be extended to capital as england seeks plans to warn Boris Johnson england is that a critical point with data heading the wrong direction. Joining us now is bloombergs edward evers who has been over details. Term thatng to need a is more nuanced than lockdown . Perhaps it will not mean what it meant in march or april. At the restrictions for that england is under already it is not quite like the spring. What do we know . It is not the same. See is aan expect to very strong warning. ,nless people heed the rules more significant restrictions are coming down the line. Recommending tightening up the rules in london. The number of cases is going the wrong way. I wonder what the low hanging fruit is here in terms of controlling the spread. I dont know, but i would guess the tube is not a great place to be, for example, especially if there are other people on it. Are we going to see Public Transportation shut down . Unclear. Between al here is for the medical argument, to keep the economy close, to shut down transports, keep them working from home, and on the others, you have the Economic Cost to doing this. You want to keep parts of the economy open. Do you let down the economy entirely . Do you allow certain sectors to continue . Hospitality is going to be keen to reopen. That will be one to watch. Does the government close that down or put curfews on pubs . We will have to wait and see. Anna thanks very much, ed. U. K. Housing market continued booming this month. Mostg prices rose the since 2016 as buyers sought more space spurred by a tax break on purchases. Tim, given what we have been discussing about the possibility of further local lockdowns, maybe Even National measures, will it be different for the property sector . Has the property sector got the model that will continue through renewed lockdown . At the pounds it depends what the nature of the lockdown looks like. Last time it was a complete shutdown. Not any activity that could take place. Since then we have learned a huge amount, the various participants in the market, buyers, sellers, estate agents, mortgage lenders, someone, so on, they have learned a great deal how to do this safely. If the market is allowed to continue in terms of properties the moment it looks like it seems toousing market be singled out. Allowed to continue. It will be quite different from previous lockdown. Matt is this jump in prices driven by People Living in flats with no outdoor space realizing all of a sudden they need to have a garden in case of a lockdown or placing more emphasis on the importance of having space . I think that is right. We have seen a number of groups come back to the market. With 2019 and brexit uncertainty. We have started to see them coming back. Be peoplehat would who reassessed their living who have usedd every note and cranny of the house as i have to make best use of space. They have realized now is the time to move. Homes,nd four bedroom that is up for a new record. Reflects that desire to get more space for your family or the home working arrangement. Anna are there signs this boom is running out of steam . Pentup demand during initial lockdown. Holiday. From the any sign that has done what it is going to do and things are cooling . Not just yet. At abouteen demand 12. 7 higher than last year and year to date. We have talked about are active. Sales start to progress. They are down just 5 yeartodate from where they were last year. Higher england, they are than they were a year ago. There is this continued support from the markets. There has been lots of uncertainty. Maybe people are capable of dealing with that. In terms of supply and demand, i can imagine further lockdown spurring more demand. More buyers getting out there saying, i want to play outside zone one. I cant imagine you would get more supply. A lot more people saying im willing to sell my place with a garden. See that spurring continued move in prices . Certainly it is supported. The good news out of the market right now is there is a lot going on. Garden, youa probably feel good about that. It is something in high demand. Is there any evidence investors are active at this time taking advantage of the tax breaks . We hear anecdotally about people from hong kong putting money into the London Property markets. Is there any of that . Either the Investment Sector in the u. K. Or international . We can still seen the types of properties. First time buyer type properties. There is that as well. It is not just this high level. Up about 4. 2 re year on year. From what we are seeing and anecdotally, there is still interest. Their rentalg for portfolios at the moment, the u. K. Remains in the Perfect Place to split your money. Anna thank you for your time. Tim bannister. Thank you for that story. 10 minutes to go until the start of the European Equity trading session. Concern around further lockdown measures spreading in london. The japanese markets have been closed. European futures point to the downside. U. S. Futures also weaker. Matt we are nine minutes, eight minutes away from the start of cash across europe. Futures pointing down on the percent on concerns about the possibility of a renewed lockdown. Joining us to talk about individual stocks to watch is dani burger. You are starting with the iliad. thats right. The French Telecommunications company it has agreed to purchase a polish telecommunications company. It is a 2. 2 billion euros deal. T is going to help expand the price is about a 39 premium from the closing the closing price. Anna im looking at hsbc. The share price in hong kong down by 3. 7 or so. Thats going to have to read across into london. Whats the backstory . hsbc getting hit from a couple fronts. For one, an investigation naming multiple banks, Deutsche Bank being one of them, standard inrtered, saying the engaged moving suspicious money. Deutsche bank, one point 3 trillion of suspicious money was reported. Hsbc getting hit especially hard because of a report they are going to be added to chinas unreliable entity list, which would give them restrictions on things like investments, visas, and trade. China would designate them a National Security threat which would hamper hsbcs plan for expanding in mainland china. On asianc, 25 year low trading. There is a leisure stock. Dani this is part of the story we have been talking about all day. Perhaps more restrictions coming onto the u. K. With the cases of coronavirus spiking. U. K. s Health Minister plans to speak today saying we are at a critical point. Look out for some leisure names to be especially hardhit. Jd witherspoons. Restaurants, cinemas, these are all stocks that could be volatile. Your dani burger with stocks to watch. We have European Equity markets looking down. Euro stoxx 50 futures down 0. 9 . Ftse futures down 1. 3 . Dax futures around 1 weaker. Iscern around coronavirus one of the things we are dealing with. A lot of other tensions in markets, or questions remaining as to how policymakers deal with coronavirus. The closer we get to the u. S. Election, the more the market is talking less and less about whether we are going to get a big fiscal boost in the u. S. That could have been material. The broaderve geopolitical story today to worry about as well. The u. S. Trying to trigger sanctions, a renewed batch of sanctions for iran. Germany and france are against that idea. So far. The u. S. Is not part of that agreement anymore. In the u. S. There is a lot of focus on whether or not republicans in the senate are going to push through with a new Supreme Court nomination after rbg. Eath of rpg the markets looking at europe and a potential drop of the open. Minute to go until the start of cash equities trading. Here are your headlines. Another lockdown . The u. K. Will sound the alarm on rising infections today. The london mayor is set to recommend more restrictions. Thanks bruised. Documents show banks kept profiting from powerful actions, even after penalties were put in place. The ecb starts an evaluation of its pon pandemic bond buying program. They are set to discuss how long it should continue in the coming months. Matt take a look at futures. We are looking at big drops, especially on londons ftse futures. They are down more than the continental futures, although continental futures are doing a good job catching up in terms of those drops. Take a look at the live cash trade as markets open up. We will pull up the global macro movers screen on the lefthand side, lefthand column, the gmm. You will see the live trade starting to populate. The ftse always the first out of the gate, down 0. 6 . Not only not as bad as the futures, but also not as bad as the percent missed price addicted, although missed price predicted, although we are getting closer to that 1 drop on the ftse. The cac and ibex down 0. 6 at the open. You can see that we are getting the continent down with a little more than half of the losses we see in terms of britains biggest stocks and the ftse continuing to fall, down about 1. 1 . As we see the equity indexes open, none are expected to open in the green. We are going to see continued losses. Milan. Own in mill anna European Markets opening lower. The fx market is sending signal that there is more risk aversion to come. Us is our guest. Morning to you, paul. There are interesting things dragging down the bank sector. We have the banking stocks under pressure. That is the biggest falling sector on the stoxx 600. Away from the details of these investigations, there has been a lot of talk about whether cyclical stocks will catch up with the growth stocks, where we have seen such a surge. Do you see any reason to be interested in banks at this point . Guest good morning, anna. Thanks for having me. We have been watching the derating of these Companies Since the financial crisis, or the middle of the financial crisis. Valuations are very attractive on an optical basis. Low earnings multiples. In the near term, there is not much dividend because much of the dividends have been suspended within the sector due to regulatory pressure. They will be expected to come back. But what we have begun to feel over the last several years, they are entering value trapped territory. It is only some kind of whichionary impulse, could bailout the banks to some extent. We should expect structurally lower returns, so multiples may not be able to progress much above 1 , even if we see some sort of reflation. There is probably value trade, but i think it is a structural longterm hold. They may not be particularly attractive at these levels. Matt these were big concerns in 2009, 2010. What do you see that is different . What differentiates what we are going through now from what we were going through in the financial crisis . Guest that is a great question, matt. I think the big difference is the share count is likely to be stable in the making in the Banking Sector. Most of the banks are wellcapitalized. The regulatory regimes, which has come to play in most part of the world, that means that need to raise more equity will not be necessary from a basic equity standpoint, but also from how they run the businesses. Thing that isher change for the banks is the necessity to be a good guy rather than a bad guy will be something that Bank Managers will be looking to do. We have seen the extension of loans to distressed sectors, and maybe loan forgiveness as well. In a sense, it is almost swapping one set of problems for another. But the difference is the main differentiator. Matt in anna in the tech sector, there has been a lot of focus on the rally we saw and the falls afterwards. There is also a lot of focus on the role of the u. S. Government, the chinese government, on the way these two are increasingly treading their own path and tripping over each other a little. Do you see this pushing up the price of tech for consumers . I know you have been focused on the implications of some of the supply and pricing. Is this going to be something that drives inflation . Guest it is possible. Be disruptedl significantly if you take a conservative interpretation of the executive order signed by the Trump Administration to restrict interaction with chinese hardware suppliers. It may take a while to think through. There is always a cycle. Sometimes the timing of that is difficult to ascertain. One thing governments will have to be careful about is in terms of coming down too hard on tech companies, from the hardware supplies, mostly on handsets, but also the service supplies, the companies that do food take out. Those have been a real godsend to consumers over this lockdown period. To vilify them may not be politically smart. I think it may drive both parties into a back route discussion around taxes, and that is another question entirely. In the near term, i dont think we should expect to see the immediate effects, but it could come through over a period of time. Matt we see concerns are different opinions around tax take on tech between the u. S. And europe. Differencesns and of opinion between the u. S. And europe on how to deal with iran. Andhis rift getting bigger, how does that affect your view on investing . There is a sense that the European Union has come into quite a different phase from the point of view of its relationships with foreign parties. It has been significant in the sense as it sees itself as being global looking, a major institutional superpower, which may be something that could be quite advantageous at times. Is, ishe devil of detail the parties with which the European Union may decide to engage rather than step away. Some of those are not seen as being particularly savory or desirable to do business with. That is something where the European Union will have to tread carefully. The standoff between those three big global powers, the u. S. , china, and the European Union, is likely to see different policies put in place. I think there will be a noisy set of geopolitics the next few years. Anna thanks very much. Investmentm, Newton Management portfolio manager. Tiktoks owner retains ownership of the company. Is this a real victory for the president . [laughter] we need to increase the pace of change. We notice a lot that women are given an opportunity when no one else wants to do the job. Them tend to project on baggage that they shouldnt bear. To change the stereotypes about women. It is not only the business of women, but men have to be part of it. We need to get those sexist stereotypes out of our head and give women a fair run for leadership. Women leaders have built up a level of trust. We could come out of this pandemic era turbocharging gender equality for the future. Juliaulia gille gillard. You can catch the interview on wednesday, september 23, as part of the equality summit. Coverage kicks off midday u. K. Time. Talk aboutt to first some Companies Taking big hits in the cash trade. Oneonone drillers, which is a unit of united internet, both german internet Companies Taking a huge hit, losing about 1 5 of their value right now because of cuts in their guidance. Keep an eye on german internet companies. That is 12 million, 13 billion worth of market cap dropping down to less than 10. I also want to point out that nickel shares are down 12 on trade gate versus the close on friday after the Company Revealed the chairman will resign. I want to get away from the Technology Companies and into london pubs right now because we are seeing shares drop. We have paul markham with us from Newton Investment management, level equities portfolio manager. Global equities portfolio manager. Regardless of your possible take on london pubs, we see the shares dropping because the worry of a lockdown coming back, and it will affect far more than jd weatherspoons. Are you concerned . Been yeah, there has press coverage over the weekend that there is about to be some kind of further move to a tighter lockdown situation. It does not appear we are going to something akin to what we had a few months ago. It does look as if something will happen. I think this will be a big concern for equity holders primarily, because the amount of recovery necessary to get these businesses back on track is going to be cut again. I think the question will have to be asked by investors, how many more times are we going to see this happen. I think there is probably a desire among many parts of the easierion to see some path with the disease, but clearly that is difficult. I think you will continue to see pressure on the leisure and hospitality sectors, especially from the perspective of the u. K. Anna the wto over the weekend calling on countries to learn to live with this disease. Is keepingeveryone fingers crossed for a vaccine. Do you think from a markets perspective we quickly move from further restrictions on daily life, which we should point out that we already have heavy restrictions on a fifth of the england population and a bigger population of the scottish population. Should we jump to that to what can we expect from Central Banks, and also from governments, extending furlough schemes, extending Loan Guarantee schemes to businesses, may be further rate cuts, more kiwi from Central Banks more qe from Central Banks . Guest i think it will. We saw in a previous segment that there is a discussion about how long to keep measures in place. I think they will have to continue with that. Negative rates are something that show Central Banks are very wary. It is hard to escape from it. I think they may be fighting shy of those, but we will certainly see continued qe policies. On the government side, that is a varied picture. According to geography, we have already seen some farreaching continuation policies off support in continental europe. Is in a government position of treading a fine line between maintaining support for sectors that need it, but also creating a situation where a few it what hes may not want to get back to work and are just happy to take the money. That is something they are keenly aware of. You may see shorterterm extensions of these policies rather than putting it through to the end of 2021. But i think the chance that the treasury will feel pressure to do something. Matt thanks for joining us. Paul markham is a Global Equities portfolio manager. He will be joining us again on bloomberg radio, so if you want to hear more on his thoughts, join us in london on dab digital. This television program, leaked documents involving about 2 trillion in transactions reveal how some of the worlds biggest banks have allowed criminals to move dirty money around the world, allegedly. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. We are almost 20 minutes into the session and looking at drops of more than 1 across equity indexes. The ftse down 1. 7 on concerns of a renewed knockdown. Told bloomberg in an exclusive interview that there should be another round of federal stimulus to help the u. S. Reach full economic recovery from the coronavirus pandemic. Our Research Team has the United States as down by 4 this year, and next year it will be up by 5 . You had a drop, you are back up to where 95 of the economy is basically restored on a quarterly basis, then we will work out from there. Behind that is a 1 to 2 growth. Going to take a while to grind through that. The reality is every estimate, including what you heard from chair powell yesterday, has gotten better rather than worse. That is because consumer activity stays strong. The fiscal stimulus, the monetary stimulus, the programs the fed had, between the government and the administration, they filled the hole to bring the economy back up to level. Probably need more stimulus for to find places that are in difficulty. Schools, performing events, airlines, and other things. You just cannot have people do it at the rate we have before. Dentist offices are back easier than they have ever been. Consumer spending is up year to year. That is good news. We are seeing it start to grow, finally. It was growing at 10 , it fell, and it worked all the way back to even, and we will see it grow yearoveryear. That is good news for the economy, meaning that amount of activity in our economy is restored. Reporter chair powell says we are better off they we thought we would be, but he also said there is a lot of inser uncertainty. How badly do we need fiscal stimulus . We have an election coming up and there is the coronavirus. We dont really know about a vaccine. Guest this is a health care crisis, and i said it in march and i said it even with you a few months ago in our interview, people cannot forget this. It is a health care crisis. What has happened the last six months, you are seeing the potential for a vaccine, but you are seeing better behavior to keep this thing from spreading as fast. As we are seeing it in the northeast, you have seen it crest over and infection rates are much different than they were early on. We are seeing the infection rates fall. You are seeing the treatment regimens different. Because of personal behavior that people who are highrisk are staying more careful, the impact of the virus is still hugely hurtful to people who get it, but not as bad outcomes. That is good news as we wait for the vaccine, which is some time out there for the next several months. That would be good news. But until that is in everybodys arm, you will still have the drag of will people go back to behavior before . That is the one thing. It is a health care crisis. What we need is pretty straightforward. You need more stimulus for the people. You think about the analogy, we are all on one side of the river, we all needed a bridge. A lot of people are across the river. Sectors thatain are doing even better than they did before the crisis. Other segments are doing just fine. The housing industry is strong, the Construction Industry is strong. Those are across the river, so let them go. Where we need help our restaurants and things like that. The next round of stimulus should be focused on the areas that need the most help. Shoulde next round, there be a second bite at the apple, i think there should be because this went on longer than we thought it would go on. Anna that was brian moynihan, chairman and ceo of bank of america. Leaked documents involving 2 trillion of transactions reveals how some of the worlds biggest banks have allowed criminals to move dirty money around the world. Dani burger has the details of the socalled fincen files. There has been a list of a lack of journalistic activity around this in many places. What do we know about these files . Dani they are called the fincen files because they are filed by banks when they see suspicious activity. They are called suspicious activity reports. They are supposed to file them to the International Crimes network. It is part of the u. S. Department of treasury. They have been concealed from the public, but buzzfeed got their hands on thousands of reports and shared them with the International Consortium of investigative journalists. What they have found is about 2 trillion worth of transactions flagged as possible Money Laundering or other financial crimes. It revealed things like possible profits from drug wars, fortunes embezzled from developing countries, as well as enablement of ponzi schemes. One of the concerns this report highlights isnt necessarily that these exist. The concern is that once they are filed, not much happens to the banks. They can be used by different Law Enforcement agencies, what they stop short of halting Bank Activity with Money Laundering. In some cases, reportedly these banks take years to file these reports. A lot of big names are caught up in this. Deutsche bank, over 1 trillion was flagged between the period that buzzfeed saw possible financial crimes. There are things like a Standard Charter allowing a ponzi scheme sorry, hsbc allowing a ponzi scheme to move more than 15 million. Matt but of course, these red flags were raised by the banks themselves. That is interesting. 2 trillion in 20 years. Hsbc shares are getting pummeled, falling to a 25 year low. How much of that is on this report or otherwise from china concerned . Dani it is certainly somewhat based on this report. China might be considering adding hsbc to a list of companies that possibly threaten National Security. This was a report by the global times. The communist party paper. They will most certainly be added to this unreliable entity list. Anna thanks very much, dani burger. Up next is the brussels edition on our focus of the eu. We bring you an interview with manfred weber. Equity markets moved to the downside. The london market under pressure. Banks falling, down by more than 2 . 30 minutes into the trading session. The Banking Sector under considerable pressure. Here in london, barclays down by more than 5 . Hsbc and a Standard Chartered down by more than 3 . Concerns around these fincen reports that have been released. They are getting a lot of attention. Stocks see more broadly related to leisure and free time under pressure because of talk of further lockdowns coming, certainly in london and possibly other parts of england as well. Weaker, downroadly by 1. 4 . Sector is under pressure today, so we got that in the mix. We also have travel and leisure stocks not doing well. Insurance, auto parts also weaker. Health care, utilities, and technology are the three doing the best, although they are also in negative territory. Get a bloomberg first word news update. Laura concerns are mounting that the u. K. May need a second lockdown to stop the spread of the coronavirus. Prime minister Boris Johnson is set to determine if the nation is at a critical point of the pandemic. There are expectations local restrictions could be extended. Is expected ton impose rules today. The death of Justice Ruth Bader thoughg has thrust Supreme Court in the spotlight. Republicans are hoping to rush through arrow placement, but democrats are warning of a constitutional crisis. If joe biden wins the election. The european is reportedly launching a review of its pandemic bond buying program. According to the financial times, it is looking at how long it should continue for and if flexibility should be extended to all programs if flexibility should be extended to all programs. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna, matt . Matt thanks very much. Laura wright in london. Eu leaders are meeting this thursday to discuss issues, including industrial strategy and tensions with turkey and russia, of course. The head of the summit, lets go to brussels, where our reporter was standing by with an important guest. Reporter what is really top of the agenda is the situation in the mediterranean. This is the gas drilling that is going on that has unleashed tensions between turkey and greece. We are joined by manfred weber, head of the European Peoples Party. We are really happy to have you on the show. I have to ask you, your views on turkey are clear. Turkey does not qualified to be a member of the European Union. Times blackmailed the European Union, and there needs to be a response coordinated between all members state. What does a unified political response look like to you by the end of the week . Are there more sanctions . Guest hello, good to see you. My message to turkey is they delivered in the last year very aggressive approaches toward the European Union. Year, theof this greek Prime Minister became [indiscernible] we saw the religious tensions. We saw the breach of International Law in syria. That is what we experienced, and that is why europe has to stay together. The greek interests are the european interests. We are a union. That is why for me the most important signal from thursday this week is europe has to stay together, has to unify, and has to send a clear signal to erdogan. We want to have a partnership, but please stop your aggressive behavior. Reporter based on what i am hearing you say, sanctions may not be needed if we do see a clear deescalation from erdogan. What does that deescalation involve . We have a positive signal in the shift about illegal gas drillings in the Mediterranean Sea was stopped by erdogan. It was a positive step of deescalation. I believe they both can agree on talks and understanding how to use the gas. If not, if they cannot agree, they have to respect the International Law. Hopefully, erdogan is ready to do so. The list is long, and that is why we need to discussions. My party, we dont think that turkey can join the European Union. We need a fresh start of the general relationships between europe and turkey, and there is a lot to discuss about the Economic Development in turkey. There are the excesses of the European Market. We also talk about visas. We want to open the discussions about the strong future relationship, if erdogan is ready for such substantial talks. When you talk about substantial discussions between the European Union and turkey, at this point, the eu does pay good money to turkey t for migration. Does that need to be revisited, the fact that we are paying erdogan . At times, that relationship does not seem easy, and we do see he uses that as political leverage. Is it time to rethink whether the strategy is working, and to pull away some of the funding . Guest the European Union and the European Peoples Party are ready for a new start of the agreement on migration. It was in the interest of both sides, so we find that the education of the children in the camps in turkey are desperate. That is good for both sides. But again, it is only one piece of the relationships between turkey and the European Union. Do wehave a partner or have someone who is challenging us . That has to be answered. If europe is united, then we can be strong. That is what we want to see on thursday. I take it your views on turkey joining the European Union potentially one day have not changed. You still believe it can be a partner but not a member state . Guest exactly. I think they will have to show us that the approach [indiscernible] that is why we have now a very difficult relationship, and we think it is needed to make a general restart of the relationships. We are ready for partnerships. We are ready for cooperation, but everyone has to show he is ready to do the same. Reporter the other big talking point is belarus, what to do there. We know the European Union has said they believe the election was rigged, and that there is going to be a list of sanctions put forward at some time. We dont know when. But i have two questions on that. When do we get to see this list, and will lukashenko be featured in it . Guest lukashenko will not be on this list. It is not understandable for ordinary citizens to impose sanctions against individuals. We have to do it. It is a question of credibility. We have to see how strong and firm and how convinced are the citizens of belarus. Every weekend out in the street, fighting for democracy and freedom. It is not only a question for the belarusian people, it is also a geopolitical challenge for us because people went out in budapest and fought for democracy and freedom. 10 days ago, it was in ukraine, then in minsk. People have the fundamental will and wish to achieve democracy and a free people. That is what is at stake. Europe must be on the side of democracy and freedom. It is our fundamental ideal of europe. That is why the people in dollars have to see that we are on their side that is why the people in belarus have to to see that we are on the side. Viewter so it is your that lukashenko must be on the list. Guest exactly. I would even go one step further because belarusian development, the interference from russia. Lukashenko gets a lot of money from putin, and probably we also see activities from officials, from police, even the military side in belarus. That is why we have to send a clear signal to russia, and the signal must be dont intervene in belarus. People in belarus to decide their future. We expect moscow to do the same. We must send a clear signal. It is clear the russian system has to fight against the position as well. Our signal must be, dont intervene. Reporter manfred weber, head of the European Peoples Party, thank you for joining us on bloomberg tv. This is coming ahead of the crucial meeting that is happening between heads of state and european leaders later this week in brussels. Anna, matt . Anna thanks very much. Marie out with that interesting interview maria with that interesting interview. European equity markets sliding to the downside this morning. Next, a european freight business and the berlinbased startup begins rapid expansion across europe. We speak with the ceo. That conversation is next. This is bloomberg. Anna welcome back to the European Market open. 43 minutes into the trading session and things look bleak. European stocks down. The ftse 100 and the dax and the ibex down. All the other indexes are not far behind. Lets talk about m a in europe. Uber is selling its european freight business to the berlinbased startup sennder. Bloomberg has learned the deal values the unit at around 1. 1 billion. Uber will acquire a Minority Stake in sennder. Joining us is the ceo of sennder. Great to speak with you, david. You have been doing a lot of deals. You have done deals in spain and france, now this one for a business that is not that old. Are you concerned you are taking on a bit too much, too quickly . Guest thank you, anna. Milestone, and it is an important part of our objective. Two year, we already had big deals. The 100 million joint venture. Ofis part of a strategy bidding upscale in volume to leverage our technology to bring efficiencies in this very oldschool and inefficient industry. Matt can i ask about scale . Rounds for 16 million in 2017, 18 million a little bit later, and then you do the uber deal, which is a 1 billion deal. How do you scale up that quickly . How do you manage to finance a deal like that . Guest it was definitely a very exciting year for us. Sure to havemaking the right process and partnering up with the right teams is one of the sources of our success. We anticipate that for the next year. We will also look into additional m a production, now focusing on startups or young companies, or more established players where we can bring our technology into the set up where there is already significant scale so we can optimize that as well. Anna how does the deal with uber come about . West from the beginning, had positives in road freight specifically. We would see continental champions. Comparing notes with the ceo and founder of uber freight, we decided the best strategy in europe would be to join forces and to team up. Through aallows Us Corporation agreement to further develop technologies that are applicable to continents as well as solutions for global shippers that operate in north america and europe. Matt but you are focused on europe, is that right . Or do you have ambitions beyond the continent . Guest we focus on europe. It is a 350 billion market. There are a lot of inefficiencies and opportunities. We are the fact that focused confirms the hypothesis we have that there will be continental champions with uber freight, mostly in north america, and we will focus on europe. Anna i understand margins can be quite low in this particular sector. Do you think m a is one way to drive those margins up . Guest absolutely. The question is, how do we drive margins up . If you look at our technology, we need a certain Critical Mass to be able to really optimize. I just want to give you one example, load efficiency. The average for trucks today is 80 . Trucks 20 to 25 of all drive completely empty. Technologies, we combined loads of different shippers so the average utilization increases. In order to do this efficiently, we need scale. Particularly is attractive for us because we can quickly scale and quickly reach Critical Mass to truly optimize our network. Matt what about on the financing side . I thought it was interesting, the ceo of snowflake said after their hugely successful u. S. Ipo, this is a milestone for us. It is not an endpoint. Certainly, they are taking advantage of that to raise funding for further growth. Can you see an ipo in your nearterm future as a means to finance more gross . Guest finance more growth . Guest absolutely. We plan an ipo for the next three to four years. We will likely raise another round. We are thinking about doing this does the markets as the markets are currently very liquid. Fore is a strong appetite players that require funding. Matt david, thanks very much. Talking with us about the incredible growth and scale of his logistics business. Take a look quickly at what is going on with bancshares because we have been telling you about this fincen report. That may be one of the big reasons you see these drops. Ing downdown 6. 3 , more than 7 . Deutsche bank off, hsbc off 3. 8 . To the lowestown level we have seen since 1995. Bancshares have been getting hit quite hard. Anna you add to that concerns around for their lockdown measures in europe and things do not look great in European Equity markets. We are looking at live pictures of a panel. Annmarie hordern is currently moderating the panel. Lets listen for a moment. The United States has just come out from the u. S. Fed chairman. That is already an indication we may well see new pronouncements and discussions of Interest Rates. He talked more about that. Other Central Banks have done it. But it is also fiscal policy uncertainty. Lots of countries are supporting the recovery, and i think this presents opportunities. Spent leads tois support. The one way [laughter] anna welcome back to the European Market open. The trading session looks negative. The markets are down by 2 . Joining us is our markets editor. We have this fincen story around the Banking Sector, and that seems to be having a big impact. They are talking about lockdown measures. Are these things driving Risk Appetite and causing investors to not to want to take any risks this morning . Some of these losses are quite substantial. Reporter we talked about this over the last few weeks. The pieces are in place for a substantial downbeat narrative. The bears have a lot of ammunition. They dont need a lot to latch onto. When you see these down moves, you see all these stories falling through the cracks, and people can latch onto them because there is a lot to be worried about in the world economy, particularly with the increase in infection rates in europe. Matt what does that mean for copper prices . What does that mean for i saw recently that jet fuel is so cheap that shippers are using it on boats instead of their usual diesel. What does this mean for the world of commodity that you cover . Reporter the commodities world is really interesting. We are seeing commodities pulling in very different directions. Copper is the one standing out. It is the best performer. Is still up today even slightly while oil in the others are falling. I think copper is giving a false signal at the moment. I think the reason is people are buying into electrical demand. People are buying on green demand, not the immediate recovery. Matt sorry. Eddie, thanks very much. Eddie vander wild from the mliv team. You can find him by typing mliv. Anna European Equity markets on the back foot. Interesting talking about commodities with eddie. I noticed the axe goldman ceo was talking about how now might be the time to invest in commodities. It is a bleak picture for london, and that is just the weather. The stockmarket down by 2. 6 here. This is bloomberg. Leaked documents related to more than 2 trillion. Banks kept profiting even after the u. S. Introduced penalties. Lockdown two point oh. The u. K. Will sound the alarm on rising infections today. Weeks to go into the u. S. Election, the Supreme Court has emerged as a critical battle after the death of st