Results, saying the missing 2. 1 billion euros on its Balance Sheet probably doesnt exist. Shift, the bank of england governor saying he gave officials more firepower in future cases. And no holds barred. Slam hongrass set to kongs National Security law when they hold talks today. We are live in brussels. Just over an hour away from cash trading. Arrows inking at red europe, more than one person , ftse futurescks a little down and dax futures off about 1. 5 . U. S. Futures are pointing higher. We see some slight gains, little gain, really unchanged. S p futures up to tens of 1 and nasdaq almost 3 10 of 1 . Gmm . Have you got on the its interesting we see the divergence in u. S. Futures and european futures, a little bit of catchup and European Equity markets. On a fairly flat session for asian markets, at least overall. Some weakness coming through in hong kong as a result of the security law, some more detail on that from china. A bit of weakness in the hong kong market. Broadly, flat across the asian session. As you pointed out, u. S. Futures point higher and european futures a little lower, having to catch up from friday still to do. There are concerns about a continuation of the first wave or a second wave of coronavirus cases and infections, but they are putting that aside and focusing elsewhere, perhaps on what Central Banks are doing. With that in mind, lets talk about what we heard from the bank of england today. An opinionon with piece written by the governor of the bank of england, who signaled a major shift in the bank of england strategy for removing emergency stimulus. The shift is to remove the stimulus once the time comes. Andrew bailey stressed the need to reduce the institutions Balance Sheet, which has swelled over us almost 700 billion howds, giving a sense of the policy would be enacted. Lets get more details on this with david goodman, who has been looking at the details here. Us, what do these comments mean for policy and do they tell us anything about the shortterm . You have bailey talking about healthy exit would be enacted but he doesnt think the time to do it is now. David thats right. Were at the point where the bank is talking about more stimulus before they start to wind down. Into whereinsight they think firepower for the future currency does lay. The current round of qe completed, and this is really going to get when the time comes. There are a lot of things on the Balance Sheet, qe terms, lending terms. There are a lot of things that they can do there. I think in the past, mark carney always said they would not set up qe until rates hit a certain level. I guess one of the takeaways is this means we can probably expect rates to stay low for some time to come. Bankers are independent as cover for making moves like this, even if they are not politically popular, and bailey says it is important to keep that independence, right . David exactly. Case, the policy has helped the u. K. Government. It has helped the government keep costs low. It is ongoing because of the pandemic. Theyve lost almost 12 million jobs of the stage and there is a huge amount of borrowing to support that. Thegovernment benefits from boe package, but i think the point is that doesnt really matter. Its not like it compromises independence. Casts the government as just one borrower who would benefit from lower Interest Rates. Let me ask you about money market funds, that seems interesting. He says the proper functioning of Financial Markets, he calls for more analysis, i suppose. David yes. This goes along with what other policymakers have said. Markets as a source of vulnerability during the crisis and we saw huge swings in the prices. Markets aree money a key source of liquidity right now, and if not, they need to step in. I think he saying we need to examine this and see what else will happen in the future. David, thank you for joining us. Economyodman, our u. K. Reporter, who wrote a story on this. You can check it out on top. Lets get the first word news. Here are your top stories from the terminal. Disappointing crowds for president Donald TrumpsFirst Campaign rally since the coronaVirus Outbreak. The event in downtown tulsa, oklahoma attracted far fewer supporters than the white house had touted. It was overshadowed by continued criticism of the president s response to the pandemic and his reaction to protests against police brutality. Worriers warriors. Thank you, we had some very bad people outside. We had some bad people outside doing bad things. I sit before you today to declare the silent majority is stronger than ever before. China has confirmed its proposed National Security law would allow beijing to override hong kongs legal system. The announcement sheds new light on a move that threatens the citys status as a top financial center. State media says the proposal will give the Central Government jurisdiction over an extremely small number of National Security cases. Looking at widening its budget deficit again in the wake of the coronavirus. The government plans to focus on Infrastructure Projects such as highspeed rail. It may approve a cut to b. A. T. To stem the pandemic impacts. They are drawing up an ambitious reform plan to lobby the European Union for financial help. Onbal news 24 hours a day air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in 120 countries. Worries,coronavirus stocks mixed as investors keep an eye on rising cases from the u. S. To australia. Gold drives to the highest level since 2002 on concerns over a second wave. This is bloomberg. Anna welcome back to European Market open. European equity market futures, some 50 minutes until equity trades, suggesting weakness for the markets. That contrasts with u. S. Futures, a touch higher. We have a little bit of catchup for european equities. Lets get some Corporate News stories this morning. In germany, two huge stories brewing. We will be covering them throughout the show. The first we talked about in our headlines, the Company Share price could be set to drop by another 50 today after wirecard admitted the nearly 2 billion euros missing from its account probably didnt exist. Stock setansa, the for decimation after opposition to the bailout from a major shareholder and a low sign up to its egm later this week. The lower sign up gives the shareholder more influence over what is happening. More on those corporate stories through the program. Matt some huge corporate stories here. In the u. S. , cases of covid19 are approaching 2. 3 million after a daily increase of 1. 2 on sunday. There are worries of a possible resurgence of the violence in the sun belt states. Onlyhile, beijing has reported nine new infections and assigned that a recent outbreak is coming under control. But we are looking at accelerating concerns in brazil. Here in germany as well. Joining us is Barclays Wealth management cio. I want to start with asking you about the second wave and what it means for investors. I think the interesting thing about this is there seems to be no clear message from how you look at the outbreaks and how they progress, and trying to correlate that between mobility and reopening. Is still being analyzing it is still being analyzed. Beijing is kind of a template for how to deal with it without resorting to a full lockdown. I think thats what everyone is worried about. Anna good morning, well. Will. From investor perspective, do you assume that the bar of a full lockdown is really high and another return to full lockdown is not likely to happen . Will the first thing, governments will feel a little more comfortable with their preparations this time around. Ppeth care capacity, storage better, Testing Capacity is not so significantly lacking. Know howso now economically painful to full lockdown is. So governments will be extremely reluctant to go into a full lockdown again. It is tempting to try and manage the outbreaks in a way that china is managing them and korea and taiwan. Expect economies to slowly start to come back online . Will the Central Banks to every thing they can to support them . Yeah, i think there are number of things that we will see this week no doubt, that people have been following closely. Consumption, other things. Seems to be up and data is telling us the recession ,ot be as sharp as we thought not as dramatic in the historical context. [indiscernible] they jumped 10 from last weeks retail sales. The recession looks shallower in some sense, but the data is telling us the recovery is a little sharper. We also need to be prepared for the fact that we will be running a less efficient economy in the absence of a vaccine. We just have to work out how much economic muscle to divert toward virus spread mitigation, and that will define how efficient the economy is going to be and how far we can recover. That is where a lot of Technology Comes in. It seems plausible to me that you will have a low point to recover to even if you have a sharp retreat. Yes, efficiencies to watch. An interesting way to look at things. What about Central Banks taking japanr example, australian, yield curve buying. Durations along the curve to control Interest Rates at certain duration along the curve , what will that do to Investment Strategy if we see Central Banks in the u. S. Perhaps or u. K. Deciding to target specific Interest Rates . Certainly one of the things to consider in the future. In now, markets are around u. S. In u. K. Certainly a policy consideration but not necessarily top of the policy toolkit at the moment. Duration is not we are underway duration underweight duration. We dont think you will see Interest Rates going that much lower. Matt thank you for joining us today. We want to apologize to viewers, or having some sound issues there which we will try to work on in the future. Will, its been great to get some time with you, the cio of Barclays Wealth management. Coming up, we will talk about another huge drop in wirecard. The shares are indicated open down as much as 50 after the company says the 2. 1 billion it cannot find may not be there at all. We will discuss the once rising star of the german fintech scene. This is bloomberg. Welcome back to the European Market open. We have 40 minutes until the start of the cash equity tradings day. European equity will have to play some catch up to u. S. Counterparts, europe a touch to the downside. Lets get a business flash for you. Lindy of corporate stories plenty of corporate stories. Wirecard says its missing 1. 9 billion euros probably doesnt exist. Its withdrawing its fiscal results for 2019 and 2020. It says it is renegotiating terms for its debt. The scandal has already seen wildcard wirecard shares collapse. Says its aa ceo deal may not pass. Only 30 of shareholders are registered to vote at the meeting taking place on thursday. Needs two the company thirds, and if 50 registered it would only need a simple majority. It could push europes Biggest Airline toward collapse. Pg e has one final approval for its bankruptcy plan, including billions of dollars in damage claims stemming from catastrophic wildfires linked to their equipment. They need a judge to sign off on the plan before the in of the month to qualify for estate wildfire insurance fund. That will help it cover damage claims for future blazes. That is a bloomberg is this flash. Sovereign wealth fund may add to its equity holdings. Holdings if there is another shock in Global Markets because of coronavirus infections. The manager sees opportunity and value in the market pose pandemic. Post pandemic. Even the high equity valuation, we think there might be some limits for the market. To be inbe better another market location for the time being. We are more cautious. In the long run, we think the market will come back but for the time being, we have a waitandsee position. What do you think the next downturn or uptick in this market will be driven by . Obviously most markets will be affected, maybe the second a if we can prevent second wave of the virus, if it is prevented by a vaccine, then markett prevent a second but i believe due to the policies, we can we dont know when the right time is that we are happy about current market changes. You made major changes to your investor strategy since the start of the pandemic . Overweight equities compared to fixed income that is our strategy. If there is a second wave, obviously we would consider our allocation. If there is another market shock , there might be for the rebalancing with equities. You might see other potential in the equity markets. That was the chairman of Korea Investment corp. Talking to bloomberg earlier. Coming out, the vanishing billions. Wirecard offers a new exclamation on the money missing from its Balance Sheet. We will discuss the latest developments in a scandal that has devastated the german dock long under a dark cloud. The stock is slumping premarket in thealready wiped out last few days of trading. This is bloomberg. Matt welcome back to this is bloomberg. Welcome back to bloomberg market the european open. Futures are down in europe, more than 1 . Partly because, the wirecard scandal has taken a new turn. The company is saying the 2. 1 billion missing from its Balance Sheets may not exist. It is the latest in a dramatic fall from grace for the firm, which was once considered the fintech, though it has been under a dark cloud of scandal for a year. For more, bloombergs tech reporter joins us on the phone. So, the missing money they say probably doesnt exist. What happened to it . That is the milliondollar question. This story gets crazier and crazier by the day. The Payments Firm said overnight shat the 1. 9 billion euro doesnt exist so they have to go around looking through the orders to see exactly what happened but there are bigger problems the company is facing right now. It has withdrawn its recent results and said previous protested the transactions on wirecards behalf were not correct, so shares in bonds have collapsed. The cheek and chief executive has departed, leaving a massive to do list to the interim ceo. Anna good morning to you. Lets talk about who leads the business because james was made interim ceo after the resignation. What is on his to do list . How honor does he get control here . Sarah there was a statement the wirecard talking about news that had been coming out of the last few days and the latest executive member of the executive board, further to become interim ceo but his to do it iss very strong, extensive, but he does have some relevant experience. That his First Priority would be to work with the companys lenders to demand more clarity and return to the extension of almost 2 billion wirecarding after breached terms on the loan. Negotiations about the next steps and wirecard said it is in constructive talks with lenders. Matt ive noticed since i moved over here the big state regulators really like to ban shortselling. They dont feel it is helpful in the markets and he did just that, specifically with wirecard when journalists at the Financial Times started to scandal. Has that helps to hurt investors even more than they would have been . Sarah the story really is astonishing. There is a real negligence on behalf of germany across many different levels. That comes from the regulators. Theyve from often targeted management, it targeted the journalists behind the critical reports from the Financial Times and unnamed hedge funds. Conspiracy theorists went crazy during this period. It had done nothing to take or do dueegulate diligence with the company at a lot of that has to do with germany being so keen for so long to create further tech u. S. , tomilar to the facebook. The longer standing tech business they have, i think they were finally excited there was a Financial Technology institution that was going to put germany on the map, but thefacebook. The longer standing tech business they negligence did not just come from the regulator. It came from politicians, the media, analysts. I think there is a real failure on the part of many levels in germanys system. Matt yeah, the case could be made it goes beyond negligence because they disallowed shortsellers to accurately price the shares. This is the point of having shortsellers in the market, right . Happens. See what the stock can collapse 50 , 70 in one day. Is there someone looking in now regulator as to why it was doing this . . Hat are the connections sarah i cant say for sure, but i think it is something that is probably being discussed somewhere. Sure, will be taking a close look at itself and the way it has conducted itself in the wirecard situation, but i think serious questions need to be answered about germanys banking regulator and the rolet had to play in cash roll it had to play in pandering to this tech giant. , bloombergsyed tech reporter for europe with the latest on a fascinating goingson at wirecard. Ofminutes until the start the trading day and we look to see what kind of loss in sure price we will get this week and in todays session after 90 losses last week. Europes concern, a new security law is likely to be the center of contention at the digitally euchina summit taking place today. We will get the latest next from brussels. This is bloomberg. This is bloomberg. Matt welcome back to bloomberg market the european open. From the minutes away start of cash trading across europe and in the u. K. Futures are pointing lower by more than 1 . Lets get the first word news. You are todays top stories for you at the terminal. Disappointi