A big majority for Boris Johnsons conservative party in the general election. The s p hits another record high as the Federal Reserve upgrades outlook for growth. U. S. Stock and bond markets are closed today for thanksgiving. We are less than half an hour to the European Equity market opens lets take a look at how futures are set up. We are seeing risk sentiment hey little bit. Weday, we stop the sox saw the stoxx 600 close one point off a record high. We are dropping from a bit of a high point, weaker on ftse 100, dax, and cac 40 futures. Risk off sentiment we are seeing globally after President Trump signed the hong kong bill. We have had some comments from the Foreign Ministry in terms of retaliation that might be causing extra concern. In terms of the u. S. Market, yesterday we saw the s p 500, dow, and nasdaq all close at record highs for a Third Straight day. U. S. Data perhaps help that along along with the fed beige book. In terms of other markets, looking to gmm. We have had a bit of a weaker session in asia. Some resilience as well. Asiapacific index down. Singapore and thailand also taking a bit of a hit. The indian rupee weakening. We have seen some weakness in the chinese yuan on the offshore as well given the latest on the hong kong bill. The backdrop to that is a stronger dollar generally. Yesterday after that u. S. Data, we saw a seventh straight day of gains for the u. S. Dollar, longest winning streak since march and hitting a more than six week high. U. S. Stock and bond markets are closed today for thanksgiving so not getting a lot of direction from the 10 year treasury yield. The bond markets not showing Much Movement at the moment. Most of the risk sentiment is being shown in equities. Risk sentiment has been soured again by u. S. China tensions. President trump signed a bill into law that supports the hong kong protest movement. Market cranfield, r bloomberg mliv strategist in singapore. Take us through where the real pain points have been in terms of the risk sentiment in markets after President Trump signed the hong kong bill and we have had some comments relating to retaliation from china . We had the usual suspects all come into play. Yen got a bit stronger, the yuan weekend a bit. Ened a bit. Weak the moves are probably a bit subdued given the fact that this is thanksgiving day and some traders are not working today. The main, this is not thing that people are worrying about. It is not a complete surprise that donald trump signed this bill. That was something that was probably going to happen anyway. What they are more concerned about is the strength the threat of these tariffs december 15. There has been no word so far as to whether these will still go ahead or be deferred to next year. That is important to have the discussions go with phase one trade talks with china and whether this action gives china a reason to push back those talks. Those are hypothetical but certainly the things that are concerning traders at the moment. The response has been negative today. Risk off probably would have been worse in more liquid markets. The big question people want to hear his, what happens to those tariffs on december 15 . Nejra the other store that has been in focus in the Asian Session is japans retail sales plunging on the sales tax hike and the typhoon playing into this as well. We are seeing the 10 year jgb yield gaining. Japanese equities being swept up sentiment. Ral risk japan certainly a country that stands to lose as well if the u. S. China trade war escalates. Talk us through the impact of the japan data and how we should read the dynamic in the bond markets. Mark the bond market seems to be looking past that. The numbers were pretty horrible from the retail sales. The sales tax was released increased in october, which rbc affected that which obviously affected that. It was still a very bad set of data. What we have also had is the twoyear option that did not go particularly well by japanese standards. I think a lot of it is they are looking forward to the promise of more fiscal measures from japan. Prime minister abe has a ready set it in motion. He has asked the already set it in motion. The bond market is more concerned about the increase in supply, which we are likely to see next year. There has been sounding out of primary dealers, whether they are ready to have more 40 year bond issues as well. We may not get this 50 year bond some people are talking about but looks like we will get increased supply in the very long end of the japanese bond curve and that is obviously having some impact on the bond curve today. Overall, the volumes have not been that lurch but the skew is going towards a lower jgb market. Nejra lets talk about the pound as well because we have certainly seen sterling gaining yougovoll, the mrp poll that shows the conservative party could get eight 68 seat seat majority. Where people were obviously very defensive, unsure about the election result, they have increased the level of shortterm volatility. We have seen one month volatility rise above threemonth of volatility, which is quite unusual. Only happens around big events usually and we have seen that. Looks as traders are getting a bit more confident. Confident that the election will be a clear result. They want to see one party clearly winning the election so they can start to make up their mind about where to go from there. They probably will not be willing to completely take all risk out of the picture. We might not see volatility come down to normalized levels but certainly there is a little more confidence. They are not quite as scared as they were just a couple of weeks ago. If you go back to sometime in october, we had shortterm volatility up 15 , 16 , around their. People are not quite so fearful were, butrk but they are still waiting. The polls are helping them to be more confident about the pound. The Options Markets telling us anything about whether the sterling upside is capped at the 1. 30 level until after the election . Interestingrk mark interesting. The top site is pretty light. Most of the op shines options are below the current spot price. If you look at where the spread of the expirations are, it is easier for the pound to rise than to fall, because the size of options is not particularly big, the distribution is pretty wide. If the pound has a reason to rally, it would be easier from an option point of view than it is for it to go down. If you get increasingly positive sounds about the clear result december 12 election, the pound has an easier path of the Options Market upwards then downwards. Nejra Mark Cranfield, great to have you with us. Thank you so much. You can join the debate on todays question of the day, which is, how long can stocks diverge from economies . Reach out to us and that mliv team under bloomberg on your bloomberg. Bloomberg radio is live on your mobile device or on dab Digital Radio in london. This bloomberg. This is bloomberg. This is Bloomberg Markets european open. We are just over 15 minutes away from the start of cash equity trading. We are little bit on the back foot after the stoxx 600 close within 1 of a record yesterday. We saw some gains in europe and fading those a little bit today judging by the futures. Risk sentiment being pulled back because of concern after President Trump signed the hong kong bill and that is causing some concerns over the direction of u. S. China trade talks. Lets have a look at what you should be watching out for the rest of the week. U. S. Markets closed for thanksgiving today, plus the iday shopping kicks off on black friday with ecommerce expected to stay strong. Lawmakers are looking set to confirm the governments balanced budget for 2020 on friday. In the u. K. , figures from the seven Major Political parties will take part in a live gmttion debate at 19 00 on bbc. China is speeding up the issuance of its one trillion bond sale. Orderings locally local governments to accelerate the sale of debt earmarked for Infrastructure Projects so the proceeds can be invested early in 2020 to help shore up the slowing economy. There were no details on one the over 140 billion bond sale will actually begin. The u. S. , canada, and mexico are meeting to push for a final agreement on nafta 2. 0. They have not yet reached a deal but there are signs of progress. There is also progress on the homefront for President Trump. We have learned the administration and House Democrats have ironed out a number of differences. Amazon is doubling its Holiday Hiring to 200,000 people. The worldsal Biggest Online retailer expects a strong fourthquarter. Amazon is in the hiring growth to the increased range of its logistics operations. U. S. Shoppers are expected to spend a record amount online in the final two months of this year. Over to japan. With the retail sales plunging in october after a sales tax hike and a typhoon kept shoppers at home. The fall of a 14. 4 is the worst on record. Economists forecast to a decline of just over 10 . The government will now need to consider this as it look at the size of a possible spending package. Citigroups new president is bonus. A 12. 5 million citi is looking to retain the likely successor to the ceo. He will get half of it in cash and half in stock. Both will be invested in annual years. Ments over four global news 24 hours a day, onair and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Nejra thank you so much, leighann gerrans in london. In two weeks, the United Kingdom will go to the polls for the third time since 2015. Prime minister Boris Johnson pushed for the election in the hope of gaining an outright majority for the conservative right. The campaign has already seen him debate Jeremy Corbyn while otherare a range of contenders with the various views on the key dividing line of brexit. Johnsons conservative party could be on track to win its biggest majority in more than three decades at the december 12 election. The poll is forecasting a 68 seat majority for the conservative party. Nationwideg, published a report on u. K. House prices. It says they have increased at their fastest pace in more than a year this month. How will the election affect you cairo state . Joining us now is andrew coombs, Sirius Real Estate ceo. Lets kick off with that question. How will these latest developments affect you cairo state . U. K. Real estate . Andrew if you look at what has happened since the brexit vote in 2016, a lot of investment that would have come into the u. K. And london specifically is coming to other places in europe, in particular, germany. The biggest affected that has already happened is a lack of investment. What you would hope for Going Forward is a decisive election would lead to an increase in investment in property in the u. K. Nejra how would that impact your business . Andrew our business is headquartered in berlin and we run business parks throughout germany. We benefited from the increased investment since 2016. I think we will continue to benefit from having that money invested and having those parks businesseserman sme and people that very often have a base both in u. K. And germany. Nejra if we get this conservative majority and then brexit becomes more of a certainty and we get a deal by the end of january, are you concerned at some of the positive benefit . I am wondering what gives you the confidence that the positive benefit you have seen so far from the uncertainty around brexit is going to continue if that uncertainty goes away . Andrew i think it will be positive for europe generally, both germany and the u. K. I think that is good for business. What it means is people both in germany and the u. K. Can make decisions and move forward. You have seen recently the decision for the tesla factory and the research and development to be based in germany. That is a positive. The certainty of brexit will really help that. Nejra in the u. K. , we have seen a bit of a change in sentiment favoring mixeduse development. Is that something you have seen in germany as well . Is that something that in your business is kinda given you an impact on your yield . Andrew yes, it is. We have seen the decline of retail, the high street in the u. K. Has led to his investment alternative property. I think what we are witnessing at the moment is a fundamental change in the way people shop, which then changes the profile of investing in retail, which leads to investment going into other Asset Classes in terms of property overall. Nejra is that in any way changing sort of the balance of your portfolio in terms of assets you might want to hold, or sell . For peopleis helping who want to invest in sirius. Are investing its company in a company that is growing its turbines and has covered its dividend. A lot of companies are paying dividends in excess of their own. Nejra coworking, is that something that has spread to germany . Andrew we do have a coworking offer. Coworking is particularly popular in berlin. We have seen the growth of it. I think that is something that is here to stay. I think it is a bit of an overused word because i think a working has been going on for a long time. We have seen a much younger market really come into the coworking space. Nejra i just want to ask you about negative rates as well. There is a discussion we have in the context of many markets constantly on this show. Switzerland sent property yields tumbling. Do you expect that in germany . Andrew we have taken out some bank lending at less than 1 for 4 years. We typically purchase properties at a gross yield of 7. 5 . Negative yields are clearly forcing down the rate at which you can borrow money at. Actually, that is appearing to be quite good in terms of the overall effect on yields and property. It is quite interesting, because if you look three years ago, we were borrowing at 3. 5 and borrowing at 8 . The spread is actually better now than it was then. Nejra andrew coombs, welcome to the show and thank you so much for joining us this morning. We are just minutes away from the cash equity market open. Next, we will take a look at the stocks you want to watch at the open, including telefonica. They have announced a sweeping operational reorganization to push for more deals. This is bloomberg. Nejra we are about seven minutes away from the cash equity market open. Lets get your stocks to watch from around the newsroom. Annmarieing hordern is looking at virgin money. Lets kick it off with you. Is the market likely to take the numbers from remy badly . We missed estimates on some of them. Absolutely. Not only did we miss estimates, but those were already lowered expectations after a difficult second quarter. The negative impact from the hong kong protest was expected but what was not expected was a big increase in central cost. That will be taken badly. The company also lowered its 4 year guidance. We will see further downgrades and we will keep an eye out on any potential impact on peers. Back to you. Nejra lets talk about telefonica, because they late yesterday announced a sweeping operational reorganization. Will investors take this well after an almost five year slide in the shares . Charles yes, good morning. We had some big news last night from telefonica. They announced this big reorganization, as you say. They have calmed down there latin american business, excluding brazil. A commitment to focus on their big markets and have created new units and an Infrastructure Division and technology division. I think the comment we have seen so far is positive. I think analysts are saying that this is telefonica accepting reality, taking a pragmatic approach. The tone has been, they also like the idea of derisking in latin america. The tone has been positive to this news from last night. Nejra annmarie, might not be so positive for virgin money. Spending the dividend in light of ppi charges. Investec thinks we could see relief. Will be interesting to see how it opens. Nejra great to have you all with us. Thank you. You can get all the latest stock stores by going to first go on your bloomberg. This is bloomberg. Nejra we are one minute from the open of cash equity trading here in europe. We see a little bit of a risk obsession after President Trump signed the hong kong bill into law. 0. 2 . Ci asia pacific down the flip side is some resilience. Cable gaining again, extending gains from yesterday, where we hit a oneweek high following a yougocv poll. U. S. Stock and bond markets closed for thanksgiving today. We saw the s p 500, nasdaq, and dow hit records for a Third Straight session yesterday. The beige book perhaps feeding into that sentiment. Oil on the back foot after inventories data for the second day. 0. 5 . Own stoxx 600 close less than 1 from a record high yesterday. We count down to the open with futures on the back foot. As we get going, we will see whether that risk of sentiment in the Asian Session reflected in the futures comes through in europe. Looks like we see a bit of weakness come through on spains ibex and the ftse 100. Ftse 100 down 0. 2 or 0. 3 . Spains ibex actually trading pretty much unchanged. They are not being hit too hard by the risk sentiment. You have to factor in with the u. K. , down 0. 4 on the ftse 100. Some Pound Strength might be impacting that. Germanys dax down, the. 25 . Rlands open down 0 the cac 40 opened a lower, down 0. 25 . You see that risk off and the red spread across pretty much all of the european indices. Will it spread across Industry Groups . You are definitely seeing more red than great on the Industry Group screen. In terms of what seems to be underperforming the most, you are seeing tech stocks underperforming. That tells you something about the fact that it could be sentiment around trade tensions. Often, you see those tech stocks underperform when what is driving the risk sentiment tends to be that. Constructio