Transcripts For BLOOMBERG Bloomberg Markets European Close 20240712

Like it is getting down through thursday lows. We are seeing pressure. I love covering the markets. Europe is a snooze fest from an equity market point of view. There is nothing happening. Light volumes. Market trapped in a tight rein from an equity point of view curate we are going nowhere in a hurry. The Energy Sector is reasonably well bid but not spectacularly. The euro is back towards the middle of its risk range. Brent catching a bigger bed. We have the opec note coming out later this week. Reports worth paying attention to. Overnight, we do not see much out of china. You are seeing a little bit in terms of the nasdaq. Alix yes. That is a good point. He saw mike wilsons note at morgan stanley. He came out in the note last week talking about it was a pull forward of demand for tech where sustained acceleration. If there is a pull forward, how much earnings estimates increase can you see in 2021 . You also wonder moving into cyclicals, may be moving into cyclicals and out of the growth trade today. After wonder how much is that regular folio rebalancing . Guy lets try to get an assessment on what is happening. You have the stimulus story, the china story, all of that needs to be factored in and worked out. Steen jakobsen is the cio at saxo bank. He joins us to give us his take on all of this. You travel widely. You have seen this all happened before. Is anything different in washington right now from your perspective . We are approaching election . Everything needs to be seen from that prism . From a market perspective should we assume the base case is the deal gets done . Steen there is no way either the democrats or the gop party can live with themselves going into the election without a deal. I am certain we will end up around 1. 5 trillion, which in itself is a sad story down to the fact that it is not about the future, it is not even about safeguarding the jobs or creating new jobs, it is about the election. Alix no kidding. Welcome to u. S. Politics. Devils advocate, you have the job openings that came out earlier. 5. 9 million if you round up. There are openings for jobs. I guess the argument is how much of a stimulus does the economy neat and what will the boost be in the of the fb market or other markets . Numbers, you these can use them for whatever you want to but they are not an accurate reflection of what goes on in the economy. We have bifurcation in the economy in the sense that if you are online, youre doing great. If youre in the Service Sector you are doing extremely poorly. We are now seeing more and more sectors were not only having a huge burden, but also have to let people go in terms of jobs. As with everything in the market and in society, there is a good story and a bad story. The overall draft of the jobless market is we will see increased unemployment and resources that are unutilized, both in terms of generations, the young people been the most affected, but also in this rich versus poor, unfortunately. Guy what do i do in that scenario . Clearly the economic pain will be felt and it will be substantial, yet the kneejerk reaction continues to be buy stocks. Do i keep buying stocks . More you become slightly selective in this process. On the one hand you realize the Central Banks and the government will go all the way, they will go to infinity and beyond in terms of the support of the market. At the same time you should realize all of these measures, especially the money printing, has a limited impact it on the market. Suggests thembers bigger the support gets to the markets the less it impacts the market because you have the saturation of the impact, and the natural laws of economics dictate the more debt we get, the less velocity we have, and the circle goes on and on again. Your defensively wanting to be long. The antidose of this money printing, which remains technology, cash flow rich and debt light in the shortterm, and overall you want to do last time you want to be long bold, which is the debasement to monetization hedge, and you want to be long volatility and that remains elevated despite the almost alltime levels we see across the globe in stocks. Alix what changes that . We have had 70 headlines between china and the u. S. In terms of sanctions on individuals it does not seem like the markets in the u. S. Blinked. Steen no. That is the story unfold. The passive investment share of the market today means everyone, especially the young people who are the main proponent of this, they are buying the old valuation, nondiscriminatory against what is going on in the world. Trouble, turkey is in south africa, and brazil in terms of the emerging market. You see a number of stockmarkets not reacting, the u. K. Being one. If you want to look for the signs of this not working, you can find it. On the other side, a huge amount of money, which i estimate to be 40 of the overall market that comes from passive. Investment is not discriminating against valuation, against momentum, it is just buying the market, which reduces the amount of cash coming through that increases the volatility because the amount of cash relative to the overall stock market becomes less and less. Up. The risk goes if volatility is increasing, if you can discount to infinity, the risk goes up, and i am wondering at what point that risk becomes real to the average investor . This ise to understand a difficult situation they are playing with, and yet we are miles away from that at the moment. Financial professionals try to balance risk and volatility. That doesnt seem to be happening at the moment. Steen there are two ways to approach that. What is the theoretical one. This could go on. We know the fed is committed for three years. You could create a program by which you remain long market and then you wait and see what happens. Is to say there is an end game. How is the end game start. What makes the end game evolve. The answer to that question is the saturation of capital, the velocity of money, the fact that printing more money and creating more debt is not working. Anyone who can do a chart can put chip input debt to gdp and overall real growth in any economy and we have a downward sloping growth. Putconcept let me just the nail in the coffin. Everyone talks about the Federal Reserve Balance Sheet expanding. The feds Balance Sheet has been falling for the last two months. No one noticed, no one cares, because the narrative in the media continues to be the same. The Balance Sheet is expanding. It is not. It is decreasing because of the extraordinary Credit Facilities being decreased despite that, the market still goes up on the fact liquidity seems to be increasing. It is not cured the problem is it is not. Ie problem is when facts think this week with the china story breaking, microsoft being involved, and huawei running out of semiconductors, that is one of the risks the market does not like. Chinese media, which already talks about the gang of four in the u. S. Against china, using , i hong kong legislation think all of that, chip by chip, is creating a bad risk reward. Alix that is a good take. Steen jakobsen, you will be stiffing with us. We will have much more with you in terms of how you look at the eu versus the u. S. As an investor. This is bloomberg. Guy i am guy johnson. Alix steel in new york. This is european close on bloomberg markets. Jakobsen, us is steen saxo bank cio. We talked about europe and the fact europe is potentially heading in the right direction. It has a Social Security system that is working. It is managing the covid crisis much more effectively and is starting to invest in technology , i. E. Environmental technology. Since we have had that conversation, european stocks have gone down in u. S. Stocks have gone up. When is the right moment to invest in europe the longterm trade . Steen thank you for putting me on for that one, guy. Obviously the game is you believe there is better cohesion going into the u. S. Election year that will at best be will beus and at worst a starting point for further social unrest in the u. S. Up, but i do not think overall the s p 500 is recovering as well. For me europe remains at a changing point. The budget we have in place shows a commitment from your. Is that enough longterm, but in the short term you created the euro rally to 1. 19, coming back down to 1. 17. People increasingly want to invest money at home, and personally, not because im european, but for me europe is a better place to be invested. I like the upandcoming scene. I like the health care sector, i the clean water sector, like the green transformation sector, and all of these companies are way too small to cater for all of the surplus saving in the world, but as an individual investor is where you want to be because we lead in that and that is where the u. S. Lacks. The u. S. Leads in big tech and will continue to lead for the foreseeable future, but the right time is right now cured alix the right time is right now. Alix how much of that is future looking and how much is what theyve done with covid . Vanke of america had an interesting report that says every country will have a ton of debt. We think europe is better, but we will be hit with covid across the board. That does not mean europe is doing it better . Steen that does not mean europe is doing it better. Steen i do not think europe is doing better better than the u. S. But not better globally. Europe catching up is the main driver for me. That is what our Equity Analyst has written about. Europe is able to release all of applications and ways to do with the world needs right now, which is a green transformation, clean air, clean food, and clean water. That is where europe is doing extremely well. They are extremely small, but they will grow. If you want to look at the next 50 or 20 in terms of the market, it will come from green transportation. I do not know which name it will be, but im certain it is. We knew it was extracting oil from the soil. 20 years from now it will be how we convert and live with nature, not against nature. To talk a little bit about what is happening in china. Just getting a headline that citi and Standard Chartered are looking to sanction chinese chinaals after friday, opposed sanctions on 11 individuals. How do y, as a corporate, manage my exposure to china if i am based in europe or based in the United States, banks like hsbc and Standard Chartered will struggle in this environment. They will be caught between the security law in hong kong. They will be caught with a dealings in china more broadly, yet the chinese economy will be growing and growing strongly over the next few years. We all know that. Even if it is not a bank, it will be nike. Some company has to manage its domestic constituency in the u. S. Or europe at the need to be part of china. How do we do that as a corporate . Steen it is interesting you bring that up, especially interesting because microsoft you have two examples of how you deal with china. Microsoft and facebook. In the case of microsoft, they have decided globally to adhere to whatever rules are implemented. They are compliant with the restrictions ways the chinese want them to operate in china. Facebook would take a decision to not do it, and than they were left behind. For all commercial businesses, you operate under the rules in china or not, and you take the decision as a business decision. That can add severe impact in terms of repercussion with the u. S. Increase in the rhetoric. , there is the microsoft way of doing business in china and the facebook on. Andbook is banned in china microsoft remains the backbone of software in the chinese system. You see apple and all of the apps still operating in china. It is binary. You are either fully invested into the rules in china, or you do not. Increasingly people argue that is what the u. S. Is doing to the chinese counterparts in the u. S. The only problem is the u. S. Is a small market, china is a massively growing market. I am not deciding this is good or bad. There only two models, to comply or not comply. Binary, it because more what kind of risk does that help for your europe call it doesnt make eastern asia more appearance and does it make eastern asia more appealing . Steen there are two liars to that question. One is should you do with china or the u. S. , and secondly is the way you conduct your business, taste on the more you sell the better it is. Those are ethics questions very difficult to answer. The fact of the matter is if you look at germany, by far the most successful country in china in terms of exports, they are complying, all the way from their Foreign Service to their business level. U. S. , you have a dictated policy of what you should do and not do, more randomly. You need a strategy of what you want to do. Inside that, you have to take a business decision. Down the line, i am sure most Companies Inside the next five to six years need to decide whether they want to do business in the u. S. Or asia, unfortunately. Guy always appreciate your time. I may have bit i may have been a bit unfair earlier on. If you put it in dollar terms, the dax is up 4. 5 , the s p is up 5 . Maybe the biggest move has been pro europe. The big difference there is the euro has gone up. Cio of saxoen, bank. Thank. This is bloomberg thank you very much. This is bloomberg. Guy welcome back. Within the last few minutes we have learned the lebanese government has resigned. I do not think this will come as a massive shock following the massive blast in beirut. Joining us from to buy from dubais bloomberg executive editor for the middle east and north africa. Now what . We do not know. We are entering the unknown. This government took a long time to form. There was a lot of horsetrading between the different parties. This was supposed to be more of a tecra product government that can attack some of the problems a technocratic government that can solve some of the problems. , the was hyperinflation currency was collapsing. The government was able to take control of the economic situation, and then this blast came in the outpouring of anger in lebanon was unprecedented this morning. Alix is there a fringe party or some kind of smaller Political Party that does have the confidence of the people that can be supported, or are they starting from scratch . It is everyone. There is a slogan that says everyone hates everyone. They want to replace the whole political elite because they have all been involved. Not a government or you have active opposition and elections were different parties takeover. There is always been compromise and deals being made, but these deals are what put lebanon into the trouble zone is in now. There is corruption, there is negligence, the kind of negligence that led to this story of Ammonium Nitrate in the middle of a city. Also, even with this new government, the fact it was not able to act because it still needed to get the agreement to all of the different parties come into the great frustration of the imf it cannot. The imf came without came with a strong statement critical of the government demanding was the lebanese agreed to be a requirement of the imf because the imf said it stands ready, it has the money and wants to help lebanon, but reforms need to happen. This is a country with a vicious history. How do we make sure that does not happen again . This is something from a regional Strategic Point of view we cannot go back to. No. The Global Reaction to what has happened in beirut is telling in their are a lot of powers there are a lot of powers that do not want evan on to slide into the kind of do not want lebanon to slide into the unrest we have seen recently. There is money coming in for immediate aid. The only hope is that these lebanese parties will agree to significant reforms that would allow money to flow in and hopefully lead to further reform. Always appreciate the update. Hank you very much up next, we will show you the european close. That is next. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. More voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music guy welcome back. 30 seconds until the end of equity trading in europe. A fairly quiet session. We are mid august, and as a result volumes have been spectacularly low. We will talk about that in a moment. Let me show you what has been happening. This is the stoxx 600, volatility early in the session, driven by the news china will be sanctioning u. S. Officials. Since then it is polite to say weve been trapped in a tight trading range. Quite warm in europe. Whether that is having a contributing factor . With the majors and in terms of what is going on with the volume, that me give you 90 of what is going on. Me give you let an idea of what is going on. The ftse 100 is trading have normal value. Down thes 40 dax in germany is down in terms of very of normal volume. You can see the volume with the vent that function on your , worth paying attention to as well. You can see that there. As you can see, you normally get a big spike around the close. This is when you get a lot of the passive funds clearing, and as a result the volume tends to come in at that point. We are significantly below where we would normally be. This is not surprising. It is august. To take a mored relaxed attitude towards the volume picture. Seeings of what we are in terms of the sector story today, we are seeing some of the oil stops doing better today and some of the banking stocks doing better today. I do not think theres anything to read into that. The oil stops bouncing back the oil stocks bouncing back. Tech trading lower. Health care trading lower. We are seeing tech underperforming in the United States, particular versus the russell. The midcaps are outperforming. Lets turn to our stop of the hour. Our stock of the hour. Here is scarlet fu. Declinesbig oil posted , and saudi aramco was no exception. Over the weekend, aramco said secondquarter revenue fell almost half from the First Quarter and from a year ago. Net profit dropped 73 . Unlike its rivals, bp or royal dutch shell, aramco is keeping its dividends, committed to paying out 75 billion this year. Wrote 75g columnist billion is equivalent to exxon, chevron, road dutch shell, bp royal dutch shell, bp, and more payout combined. It clearly does not have the cash flow to support that payout. Most of the dividends go to the saudi government. The ceo did say aramco is prepared to borrow or take out loans to keep the dividend intact. One thing i did notice is aramco gave itself a little bit of wiggle room, saying the dividend payout is subject to board approval and market conditions. Market conditions were awful in the second quarter. Oil briefly turned negative in april. Brent fell below 20. It did not go negative but it has since recovered and distilled down 33 this year. Ceot now saudi aramcos said oil demand should continue to improve. Aramco went public in december. It was the biggest ipo ever and the stock has only fallen 6 , partly because of the hefty dividend promised and all of the oil it has in reserve. It has lost the crown as the worlds Biggest Company to apple as investors continue to pile into big tech, often at the expense of the cyclicals. Alix i remember that. I was teaching my kid as oil went negative and had to go on tv at the same time. Scarlet . You are teaching her about oil . Alix now, i was homeschooling. Maybe talking about oil a little bit. Ellen wald, you follow oil closely. Can you tell us what saudi is doing as a company and the government wanting all of its money . That is a major ellen that is a major concern when it comes to aramco. If you look at the company is a company, it is it a great position in terms of profit. It has great assets, incredible agility coming to secure customer base. As a company it is doing very well. There are questions in terms of its relationship to the saudi government, and it is like a weight around event. It has an incredible dividend. Paying that dividend for this quarter will you up all of the profits, all of the free cash flow. It will dip into the cash reserves just to pay that dividend. On top of that, you have to look at. At capex. Aramco had committed to spending 40 billion a year, and that is not happening at all. When you look at it, you have to ask what is being sacrificed in order to maintain this incredible dividend to the public shareholders, most of whom are saudi citizens, and the saudi government. The dividend is a political question. Aramco cannot politically back away from the dividend. , and youoing to give have to look at this in terms of the longterm Expansion Plans of the company. What are they going to be cutting back on . You will see in terms of this longterm Expansion Plan in gas and other areas that will be what it comes down to. How long, politically, do you think we can see this Current Situation sustaining . Clearly a few months after an ipo there is no way the saudi government and the crown prince will tolerate any kind of significant degradation of the dividend and the companys financials. How long does that last . How long does that relationship last . Ellen a lot of that does depend on market conditions. About is very positive the future of oil demand and oil prices. I can understand they are more positive than other Energy Companies because as the ceo said today, 70 to 75 of aramcos crude oil sales go to asia, that is where demand is looking the best for the rest of this year. It is looking not so great in north america and europe, but that represents a minority of aramco sales. I can see where the positivity is, but with Oil Prices Still so this situationee is sustainable for much longer. I think there are some in the saudi government who recognize this. Last month we had the finance minister saying we are raising the vat, and they raise the bat in saudi arabia to levels much higher than the rest of the reason. They discussed the possibility of income tax, which i think would be a political nightmare for the saudi monarchy, but the fact that they raise the idea of pursuing revenue from areas other than aramco is a big deal. Alix which is a perfect leeway into what saudi aramco is trying to become. I was struck by how committed it isre it seems like a terrible time to spend 15 billion on a refiner. What is going on . Ellen that is a good point. There seems to be some confusion or disagreement over whether the he wasnt today, when asked about the state of the deal, said we are doing Due Diligence and that is it. We are notas saying going to make any public statements about that deal. Important because thes road into india way aramco operates is it likes to buy stakes in refineries in countries where it wants to export a lot of glue a lot of crude oil because that is a baseload of oil exports to that country. Owning part of the refinery would secure aramco crude into india, and also gives it some stake in the profit. It is not a great time to spend that much money on a refinery, but at the same time aramco still needs to invest for the future. That is part of what this deal represents to them. How much debt do you think this company ends up carrying . How much more will we see in terms of bond issuance . Ellen there will be more bond issuances, particularly if demand remains sluggish for the rest of 2020. Even though they are relying on asia to buy most of their crude oil does not mean crude oil prices will go up. Would like to see Prices Higher than the 40s. They are happy with the stability we are seeing in recent months, but at the same time, the opec plus deal they are committed to means they have a cap on how much oil they can produce and sell. I think they will compensate by issuing more debt. Guy have to leave it there. Ellen, always appreciate your time. Ellen wald, Atlantic Council Global Energy Center Senior fellow. A quick look at the equity markets. Very range bound. A little bit of movement during the auction process, but not a great deal. Finishing in positive territory. Oil stocks doing relatively well, banking stocks doing relatively well. The market has been largely becalmed. I expect u. S. China and politics will be a big factor in the conversation. It will be doing that at the top of the hour on dab digital radio. Jonathan ferro is new york, i will be joining him in london. This is bloomberg. Guy live from london, i am guy johnson with alix steel in new york. Close onhe european bloomberg markets. Lets talk more about this technology fight between china and the United States. Willng announcing you sanction u. S. Officials including senator marco rubio and ted cruz. Coming off of some of the measures imposed by the u. S. Friday. Joining us is roger zakheim, director of the Ronald Reagan institute and previously formed as general counsel of the u. S. House Armed Services committee. Thank you for your time today. Lets talk about what kind of trajectory we are on. Where is this going. At the moment, Financial Markets seem reasonably relaxed about this conflict between china and the United States, yet i read more and more stuff from the politics and International Relations world which makes me worry about a cold war 2. 0. Roger i think a cold war 2. 0 israel. It has been going on for some time. Is real. It has been going on for some time. What is new is that has entered the technology economy. For years the u. S. Government has been mitigating Foreign Investment in the United States when it comes to china they have been doing that with respect to 5g, they have been doing it with semiconductors. The is new is now impacting technology our children use every day on their phones. Understand how tiktok is a security concern in general in terms of exposure to younger children. How is it a National Security concern . Roger it comes down to data. Tens of millions of americans giving their data over to the Chinese Communist party. That is not a controversial point. It is something republicans and democrats and experts in the United States have been thinking about and working on for years. What is controversial is how you mitigate that threat. Is it adequate to make a u. S. Company buy the subsidiary of a chinese entity . How you mitigate it is the challenge. Do take the view you cannot mitigate it at all . That is the debate going on inside the white house. Guy are we going to have u. S. Companies and are we going to have chinese companies, and are the two being to be excluded from the other hegemonic sphere of influence . Roger it will happen in those areas that are key to National Security. Warfare in the 21st century. You already have separate companies when it comes to aerospace and defense. What is new is the innovation base, those companies that control and develop technology for the 21st century, are now on that dividing line. Cold war 2. 0 is trying to find out how much intersection can we have between United States and china and how much decoupling is required . In the realm of semiconductors, everyone has decided they have to go separate ways. When it comes to things like tiktok, where you have huge amounts of data going across the United States and china in the opposite direction, people and policymakers trying to figure out how much intersection can you allow for . We will see with this microsoft solution, a middleoftheroad approach. That may not satisfy every person concerned about National Security when it comes to china, but will probably be enough to put a bandaid on the issue for now. Alix what duplicates will we have . Facebookus china, your supposed to be you have facebook launching reels, supposed to be the tiktok of facebook. Will we have multiple companies doing Different Things in different continents . What does that mean for innovation . Roger it comes down to what used to be called in the 20th century the west, in the 21st century we talk about democracies across the world. Will they be coming together because they trust each other, there is respect for intellectual property . Those companies will be the multinational companies. The question is whether or not china will be part of that. When it comes to technology, the answer will be no. You will have duplication. What is going on in hong kong is a great example of the fear you see being justified on the part of the west, on the part of democracies across the world, that if you will integrate with china on the things that matter most to security, youre risking your freedom and risking your prosperity as well. Statesn the united contain china . Roger that is the question. I think containing china is the headline going what is challenging containing china is the headline. What is challenging is what parts need to be contained, what parts need to be integrated. When it comes to data and high end technology, that is the tough question. We are finding out whether the u. S. Can do it. What is clear is the u. S. Cannot do it alone. Take 5g. There is recognition United States cannot simply isolate huawei and then expect other countries to follow suit. There needs to be some collaboration, some multinational cooperation across these countries. That will determine the answer to your question. Can you contain china in these areas of sensitivity where National Security and Technology Intersect . The answer will be whether the United States can create alternatives and bring in other democracies around the world into that framework. Alix as we are talking, the South China Morning Post says talks with microsoft unlikely to end in a deal. What is the complication getting tiktok out of the u. S. . Is it even possible at this point . Roger i will not speak to the but wecs of the deal, have in the United States the committee on Foreign Investment in the United States, or any time the Foreign Direct Investment in the United States, where there is a secured where there is a concern about National Security, it has been mostly focused on china, they have frameworks and the authority to make sure those businesses the United States does not want to get in the hands of china, they can create that separation. The law is in place, the policy is in place to realize that. It has habit a lot of the semiconductors space. The answer to your question is yes. Normally they like it when a u. S. Company can essentially be that kind of balance between the Parent Company come in this case the chinese entity, the u. S. Company for the subsidiary to make sure the Foreign Ownership and influence is mitigated. We will see if it happens to microsoft, and respect to the headline you just mentioned i am sure it is in play. If they cannot get a deal done, the United States can place a full on bar. Guy fascinating. Higher, trading 2170 on the South China Morning Post regarding the microsoft tiktok transaction they believe it will not reach a positive conclusion. Roger, thank you. Roger zakheim of the Ronald Reagan institute. This is bloomberg. Ritika time for the Bloomberg Business flash. Ousted ceois suing Steve Easterbrook to recover tens of millions of dollars in severance pay. It fast food chain says discovered evidence easterbrook had sexual relationships with several employees and tried to cover them up. Mcdonalds also says he arranged for one of the workers to get a lucrative stock award. No comment from easterbrook. Shares of apple are now within striking distance of a historic 2 trillion valuation. They have almost doubled since march and need to gain 5 for the market cap to go over the threshold. Much of apples recent surge came following start of the expected results. Investors are positive about a plant stocks which. A clarification on our interview with garrett gold ceo mark briscoe. We said the company was not planning a new york resting. We were referring to a primary listing, as barrick gold already has a listing. Alix thanks so much. Appreciate that. We have a busy week despite the fact that it is mid august. Joe biden is expected to announce his vp pick tomorrow maybe today, maybe tomorrow. He also earnings from softbank and foxconn. That president mary daly will be speaking. That it is over to your neck of the woods. The u. K. Releasing its unemployment numbers. Earnings from cisco and tencent, and later in the week, the big event, u. K. Gdp. For us it is politics, for you guys it seems to be the underlying economic data. Is it worsening . Will. T remember the furlough scheme is likely to come to an end soon. There is pressure on the chancellor to deliver more help and assistance for companies and individuals, whether or not he can do that or afford to do that remains to be seen. The sense as we get into the fall, things are likely to get a lot more tricky. To be honest, i think the market will be dominated by any talk of talks between republicans and democrats on some kind of a deal on stimulus. That is likely to be the driving force this week. Alix yes. Also the vp pick. The longer it goes you have to ask yourself why and what does that mean about his leadership . That wraps it up for me and guy in new york and london. Coming up, we have balance of power with david westin. Looking at an equity market rolling over when it comes to tech. S p ingrained territory. The dow jones up about 1 . This is bloomberg. David from bloomberg World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. , welcome to balance of power where the world of politics meets the world of business. Lawmakers are tried to sort out president trumps four executive orders from saturday and what they may mean for a fourth stimulus bill. We welcome our Washington Bureau chief, craig gordon. You have to explain what does this do to the dynamic . Does it shift the burden back to the democrats . Craig it a tricky one. If your nancy pelosi and Chuck Schumer you do not want to look like youre standing between people and their unemployment checks. That said, what trump decided to do is a bandaid fix. The key thing that has not been reported enough is the only states they can get this money are states where the governor agrees to kick in 100 of their own money to make it 400 a week. You can imagine the