Installed within a whisker of februarys alltime high. The cash trade is less than one hour away. Your are your headlines. Germany extends its Job Support Team until the end of next year, spains or rules out another National Lockdown as cases rise. Britains vaccine bet, the u. K. Backs a plan for a dnabased maxine. We look at a 50 million rates for a solution. And caveat emptor, u. S. Consumer confidence drops to the lowest level in six years. We will get the latest french figures out this hour. Just under one hour away from the start of cash equity trading in europe. Lets look at how futures are trading. Right now across europe, we are seeing slight green arrows. And i mean slight. You can call dax futures and euro stoxx 50 futures unchanged. In the u. S. , we see most futures contracts falling this morning, although also very slight drops. S p futures are unchanged after another record high yesterday. Nasdaq futures gained about 1 10 of 1 . Anna, what do you see on the gmm . Anna feels like we are taking a pause for breath. The gmm emphasizes the downside in the asian session. The Msci Asia Pacific is almost entirely flat compared with the previous close. The chinese and singapore market are all showing up in negative territory. In terms of where we are heading , or things guiding us around, still virus concerns, of course. The focus of the concerns seems to be drifting slightly from the u. S. Into europe, not in terms of the size of the caseload, but maybe the trajectory of those infections, usually something we are very mindful of here in europe. The focus is on fiscal stimulus. We will see whether that manages to turn things around. Big news out of germany on that front. We will keep an i on that. And on oil prices as well. We see a mixed picture for oil, brent at 45. 49 as we watch a hurricane laura. The second night of the Republican National convention was capped by speeches from secretary of and first lady melania trump. Pompeo sparked controversy for record his speech during a trip jerusalem. The state department prohibits political activity while on official travel. Third night of unrest in wisconsin, after businesses were vandalized and dozens of buildings were set on fire. It was sparked by the Police Shooting of a black man, jacob lake. His familys lawyer says it will be a medic miracle if he ever ws again. Children over the edge of 11 will have to wear face mask use their school is in a high risk area and that includes oil moving around the building and in communal areas. They will not be required in classrooms. In less risky areas, it will be up to the school to decide if masks are necessary. A weeklongicked off tour. Yesterday a minister was in rome meeting with his counterpart, luigi demaio. This comes on the heels of u. S. Victoria state mike pompeos visit in which he once china er threat than russia. Global news, 24 hours a day, on air and quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Matt matt thanks very much. Stalls in global stocks within a hair of februarys alltime high as investors mull the pace of recent gains. And expectations loom over Monetary Policy. Benchmark ande the tech heavy nasdaq climbed backedesh records by gains in facebook shares. Our bloomberg mliv microstrategy is is here. Laura, it has been so long now that we have been hearing evaluations are skyhigh but the outlook for gains is too strong to resist. What is the reason now for these new highs in the second wave of coronavirus . Laura ultimately what markets are telling us is the this bullish optimism prevails. A slew ofriced in for good news, whether that is the slowing u. S. Case count, whether outlook,upgrade in the whether that is there is no alternative in terms of finding returns, ultimately what we are seeing is cash being deployed into the equity market. I think Going Forward, it will be a case of markets being vulnerable to negative news flow. It will be all about jackson hole this week, what comes out of powells speech tomorrow and low for longer narrative in terms of Monetary Policy will continue to bolster the optimism we are seeing in stocks. Anna with that in mind, on the markets live team, i know you have been asking this question, what the bond traders fear at jackson hole . Running up to this event, there is a lot of talk about inflation, average inflation targeting. What are they fearful of . Are expecting a shift in terms of the inflation mandate, they expect powell to confirm this low for longer narrative. Bond yields are breaking away in terms we are seeing of the inflation extradition outlook, so that confirms what they are expecting from policymakers. What bond markets potentially fear, we can look to the post someminutes left week for guidepost, because that is where we didnt see any signs of imminent change in the inflation mandate. We saw bonds come under pressure and yields rise sharply. That frontintment on in terms of a Material Change ahead in terms of their actual mandate for framework, that could suddenly send a jolt through markets tomorrow. Matt speaking of ageold, how concerned should we be about hurricane laura . Pricese are seeing oil at these fivemonth highs, and ultimately, yes, it is constraining supply, we are seeing u. S. Inventory being wound down because of it. But i think the impact will be relatively shortlived. I dont think we are going to punch through and sustain levels above the 4550 dollar a barrel mark because at the end of the day, we still have the downside, that remains under pressure. Notably if we start to see these rising case counts, and consumers not having the capacity to sustain demand on the income side, ultimately, oile will be what pins prices at current rangebound levels. Anna i am not sure we have ever had a hurricane, anna. I keep waiting. Let me ask you about the fiscal stimulus in germany, there is a lot of talk about where in europe we will the fiscal support. We have seen it overnight in germany in substantial to a substantial extent. Does it add to the appetite for risk assets, do you think . Lara absolutely. Extension is crucial to economic recovery, because we are already seeing activity beginning to stall below the pandemic levels in germany where it has been really strong relative to its peers. Thatis evident in the fact the ecb actually sees that unemployment in europe would be closer to the 11 range relative with thelow 8 now absence of these games, so getting this income to the consumer side will help support those recoveries. We are seeing that play out in terms of european futures slightly outpacing u. S. Peers today. That is likely feeding into some Risk Appetite this morning. Matt laura, thanks very much for joining us. Laura cooper, bloomberg mliv strategist. You can check out her work and the work of her colleagues on the mliv blog, just type mliv < go on your terminal. Germany late last night reached the agreement, the coalition did, to extend this Job Support Program until the end of 2021. What does this mean for stabilizing europes largest economy . Was it too soon . We discussed the details next. This is bloomberg. This is bloomberg. Welcome back to the European Market open. Still a few minutes away from the start of cash equity trading. Futures suggest there will be little change. Kicking off the alltime highs seen in the s p and nasdaq overnight. Lets look at the corporate stories we are coming for you here. Palantir plans to list on the new york stock exchange. A proceeds rate is and does not have any traditional underwriters. Palantir has never been profitable. This Pharmaceutical Company has been charged with conspiring to raise prices for generic drugs, one of the significant things to come out of the years long investigation into pricefixing. It is the Worlds Largest generic drug maker and says it is disappointed by the move, Andrew Jackson allegations. Mcdonalds is investigative allegations. He mcdonalds is investigating the ceo who was fired in november over a relationship with an employee. It is alleged he had multiple affairs with workers. The company concluded he lied and concealed evidence in the initial investigation. Easterbrook has denied the claims. That is the latest on a Bloomberg Business flash, matt. Matt alright, we are looking at the extension in germany of the until thet program end of next year. Let as the government seeks to stabilize europes largest economy. The subsidies, originally intended to last 12 months pay the bulk of paychecks and allow companies to hold on to workers through the financial turmoil. Treon,joined by anneka managing director of equities at camkempen. I guess it is not a huge surprise. Is it positive news for investors . Positiveabsolutely news because it is yet another signal and another indicator that governments are willing to do whatever it takes to prop up the economy. Anna that is what makes it positive. Is it invest about, something that will drive further flows in terms of investor allocation from other parts of the world into europe, that seems to be things of that many investors are talking to us about already. Absolutely. Europe in particular has been the last child for a long time. If you look at other geographies particularly the u. S. We saw very offputting statements by other Asset Managers for example, lack rock in its media update, where they addressed the point that europe looks to cheap and too laggard. With a fiscal union which appears to emerge catching up to a longstanding monetary union, we look to redress. And recovery is certainly paramount to that. If you look at europe for the firstince indications of the recovery europeoming together, has had a nonquarter high there , which is remarkable. Statements such as the announcement from germany this morning is simply supportive of that. Governments are willing to do whatever it takes on a national level. From the European Union level, they are willing to coordinate. Matt you know what, we see that investors appreciate that in terms of german stocks. The dax is almost unchanged here closer to theng gains we seeing on the s p 500. But elsewhere in europe, the ftse is down 20 year to date, far underperforming u. S. And german stocks. Actually, most continental indexes outside of germany are down double digits year to date. Is this just because of the lack of tech stocks in all of these oldschool benchmarks . Anneka you have hit the nail on the head. Europe suffers from an old economy problem. The stoxx 600, 10 of the weighting is represented by tech. The s p, 25 is made up a loan six just ask tech stocks tech stocks. There is an enormous derth of tech investment in europe. It is a major problem and no wonder that the Recovery Fund has put such an emphasis on digital transitions, green transitions. It begs the question how quickly europe will be able to catchup in order to attract more Structural Capital and structural investments in the region. That is yet to the scene. But we have seen that a lot of the money which has now entered feel likene, it does the first leg of attraction is almost a cheap option on a potential cyclical recovery. The less fleeting leg of investments will need to be supported by a pickup and a catchup in growth and innovation and in technology. Anna we have seen a strong rally in the euro on the back of agreements in the eurozone recovery. Has that stalled . Thing ishe interesting i think it is important to think and thinket dynamics about Asset Allocation and its entirety. The big shift we have seen that period where0 year europe was left off, you start seeing participation again in the eurozone. What we need to look at further, why are stock markets doing what they are doing particularly in the u. S. , while the Economic Situation seems to be telling a different story . Where is the disconnect coming from . Of course it is the lack of alternatives, say you buy equities in a yieldhungry environment. Perhaps even more importantly than that are the technical factors involved. Passivehink about this retail mania in the markets, which are arguably be magnified forces ofquant things cometh these factors have been enormous drivers in the returns thus far, particularly in the u. S. Forces,un through the the scary thing is it does feel like a of reference. Years ago, we saw a red flags being raised about dangerous developments in market architecture. Years ago, you had statements such as, 80 of the stock market is running on autopilot, and enormously powerful statement. What you have seen since covid, if you think about how in march 2020, the preferred group was. That is why etf inflows have already surpassed 2019 fullyear. The issue is that with great anticipation, it is quite simply compounding the overcrowding that we see in largegrowth companies. Thank you. We will return to those themes in a moment. On the subject of the euros, our colleagues are writing on the technicals. Amec i was just referencing have back to backming with very similar lows. We will be back shortly. Coming up, can anything derail the relentless u. S. Rally . We discuss that next. Hat next. Anna welcome back to the european open. European features such a little more direction, pretty mixed in terms of where we will head in 45 minutes time. U. S. Stocks reached alltime highs. Perhaps that is one of the reason we are pausing. A Third Straight day as the pandemic showed more signs of easing, amidst continuing expectations of Monetary Policy. The s p 500 and nasdaq notched fresh highs as facebook shares rallied. Anneka treon joins us. You talked a little bit about how the way this retail mania might be feeding off each other, snderscored by the role of quat in all of this. The role of quants how do you think they are driving us to higher highs . It is a fascinating topic that is not getting the level of attention given the significance. Answer your question, i want to zoom in on retail and the relationship between retail and quants which is such a permit point, retail participation since covid has enormous, 20 to 35 of contributions to date coming from retail, which a most doubled. It is therefore that robin hood, which has become synonymous for Retail Investing with its commissionfree proposition, a sevenyearold company, is now valued at 11 billion, a valuation up 50 year on year already. Quite remarkable. If you think about the role of ants and how it all intertwines, lets talk about tesla, which it could argue is the poster child of the retail mania today. Au cant help but draw parallel between the dotcom bubble in 1999 and what were seeing today. Stock is truly remarkable. Coincidence that tesla is one of the most actively traded stocks on robin hood. Quite interestingly, when robin hood earlier this month decided withdraw its data access to the street, esau comments and reactions from the Hedge Fund Community and also from the quant Fund Community highlighting this is a problem, because Retail Investing tends to have a momentum bias which works very well in quant models of trading. Anticipatingare where do we anticipate crowding in which sectors and which areas and they are positioning and feedingor that of data feeds from the Retail Investor community, particularly because volatility levels have normalized. That does allow the risk models on the quant side to put more leverage on. Matt fascinating stuff. Unfortunately, that is all we have time for. Hopefully we can get you back soon, anneka treon from kempen. The welcome back to european open. We are looking at a mixed onside not really much order of direction. Spain is emerging as the epicenter of europes run a virus outbreak. The Prime Minister, pedro sanchez, has rejected calls for another National Lockdown. In germany, meanwhile, chancellor merkel is extending the countrys john support program until the end of next year. So a couple of different stories on the continent. Joining us is arrieta dale maria tadeo. We will start with her home country of spain. There is no National Lockdown. Looks like the Prime Minister is pushing the responsibility onto the regions. How helpful is that in combating the virus . Maria it is not actually very helpful. The Central Government is saying that we dont predict anything that looks like the march situation where the whole home, ifad to stay anything, the regions are finding ourselves in a difficult position because cases have rocketed over the past two weeks. They should turn to the Central Government and ask for the state of emergency. The reasons are never going to do this. It is a most like conceding defeat. This is becoming a game between the Central Government and the regional administration, which is not making their response effective. The Prime Minister is taking a communityt from the because the country is not reacting quickly enough. Spain had a poor start to the year. Some are essentially did not happen, in the fall could see a big recession. So there are serious question doingabout what this is to the economy because the damage looks very big fall country like a spain. The concern here is that we head into a deep recession. Maria, instead of fighting the pandemic, germany is extending its relief package to workers overnight. What is the political dust does this signal theres this signal more stimulus coming from europe . Maria the government already said we will continue with this program and it will continue to pay for relief for workers if 2021. On get fired until but germany is a country that is rich, that has a surplus and money to spend. The rest of the European Countries like spain and italy will have to ask themselves the same question, do we still have to pay for this . Though we have the money to p