France relaunch. President macron unveiled his stimulus plan. The focus shifted beyond covid into longerterm problems. Russian tensions rise. Angela merkel says there is proof that an opponent was poisoned as he was tested in germany. And mercedes considers an electric version of its luxury maibach to defend its luxury anna welcome back to bloomberg position. Markets european open. Are just an hour away from 53 minutes into a positive the start of cash equity trading European Equity session. U. S. Futures have pared some in europe. Lets take a look at futures losses as well. That is worth keeping in mind. Right now. They are higher in europe. Lets talk to laura cooper from markets live team, where she is we are looking at gains across the board. Macro strategist. One of the things we will be watching for his initial jobless claims. I am drawn to a piece you have futures are higher. Written about the importance of data or the way that data that we usually see driving markets we see drops if you look at u. S. Is not necessarily driving futures. Markets right now, because we are all hooked on the latest virus news flow, vaccine news flow. What is the relationship at the moment between data and market response . Laura the key point is that we are always away from the open there is not really a relationship. In new york. We have seen this narrative that stocks are breaking away from economic fundamentals. Clearly, that is the case when we look at data releases and the anna we are talking about actual impact that they are futures. Having on markets. Typically, we would expect initial jobless claims or this shows you what is happening tomorrows payroll to have a in asia. Significant move in terms of equity markets, but is that we have real divergence between that is not the case these days, the kospi. Because it is about these the Hong Kong Market is down. Vaccine headlines and these hints of unexpected policy shifts that is really driving markets. We will likely need to see a certainly mindful of the record highs in the u. S. Mindful of the broadening of the vaccine in order to get cleaner read in terms of Economic Data rally. Away from tech. And for that to really revive this monetary transmission lets talk about that as we go mechanism that is clearly being through the program. Broken and markets in lets look at ethics markets. Markets. And it is not long until november 1 and the cdc is the dollar up a little bit. Getting ready for that day as a vaccine delivery deadline, it looks like. I want to talk about the big there does seem to be strength economic number we are going to get tomorrow, the change in nonfarm payrolls. Typically, it is a big one for moving around a little bit this morning. The markets. I have heard so many say, as a first word news long as you are within 200,000, you guessed pretty well. Update. Germany says tests showed the whisper number right now is 35. That a russian Opposition Leader is there room for a lot of was poisoned. Volatility around this . Laura i think certainly that has been the case over the last number of months. Unprecedented berlin will now consult with its european and nato allies. Economic collapse, which is very world isrkel says the difficult to try to forecast numbers Going Forward. Waiting for answers. Where typically we would look to we are expecting that the initial jobless claims as some kind of gauge on the firing side of the equation, but more people russian government explain this incident. There are very serious questions could potentially drop out of that only the russian government the workforce. We are seeing this fragile labor can answer. And they must answer them. The u. S. E diplomats in market backdrop. That does not really give any indication of what we are going face new limits on travel. To see potentially tomorrow. I think ultimately, we are going to see a slowing pace of hiring Going Forward. The real risk is that we are senior officials will now need going to see more permanent job losses Going Forward and just approval to attend any event the capacity about much more stimulus could be needed to try outside of consular posts. To salvage this recovery that is being priced into markets. Anna ok. Boris johnson is trying to win thanks very much, laura. Back trust after a series of laura cooper. Policy reversals. His return to westminster has the germany august services pmi facetoface meetings numbers come in ahead of the prelim number, 52. 5. With mps who are anxious over bloomberg surveillance is up his handling of the crisis. Next. They will keep watching the strength in these European Equity markets. This is bloomberg. Global news, 24 hours a day, on look here, its your very own allinone air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Matt thank you very much. Asian stocks are mostly higher after their u. S. Peers set fresh alltime highs again. Perhaps we are broadening into other sectors and away from technology. We have been talking about how tech stocks are overvalued. There must be a move back into those value trades. Im not sure this is a real big turning point. Eurodollar has cap down a little bit. I am impressed how global risks are holding up so far. That might be a broader shift. Anna good morning. We are seeing big moves and affects markets. We see the euro down half a percent. Entertainment experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. It might feed into a change this baby is the total package. It streams exclusive originals, of risk appetite. The full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. They are concerned. This leads to a broader theme we are seeing across the world. Matt what is this china headline that we saw this morning mean . They will go all out for their chip market. What does this mean . Think this is an ongoing chipping into the trade war. Thing. China is planning a sweeping set of new policies to develop its Semi Conductor industry to counter Trump Administration restrictions. In the green. Global stock rally builds after they want to bring a lot of the u. S. Equities touch fresh highs. Researchers home. France Emmanuel MacronEmmanuel Macron unveils his stimulus plan. They want to isolate their tech the focus shifts beyond sectors. Anna this is an interesting one. I was reading some words by bloomberg economics. Chinas growthg rate down to 3. 5 . There is a lot at stake. Let me ask you about vaccine news. It seems we have seen some more promising signs. There seems to be an urgency, readiness, to get prepared in the u. S. For a vaccine to come earlier than had been anticipated. I think the market is waiting for real news on this. Given the rally we have already seen. I think it makes sense to talk about. 60 of those vaccines that go to phase three trials get approved. That number goes up to 85 . Five or six of these are on track to get approved. We could be in a world where we have five vaccines. That was a slightly arbitrary date. Expecting some vaccines is a logical consensus of opinion. It might have less impact than people think. There will be vaccines hitting the market by years end. Anna thanks very much. 50 minutes to go until the beginning of the trading session. U. S. Stocks set yet another alltime high. Techhe rotation out of given even further to run . This is bloomberg. Matt welcome back. This is the european open. We are about 48 minutes away from the beginning of cash trading. United airlines plans to eliminate more than 16,000 jobs next month. This will take an effect on august 1. Some of the staff may be called back when demand improves. The holiday rental firm was approached about a merger. No official comment on the story. The company is on his radar. They are facing a regulatory probe. The sec is looking into if the fund informed its clients that they sold their stock. To disclosures prior to 2018. They cooperate fully with regulators. Thank you very much. Hit yet another record in yesterdays session. Investors are expecting signs that the rally may be going into other sectors. Really good to have you with us. That we sawally yesterday in the u. S. Are we about to see other sectors catch up . Good morning. This will be more outside of tech. This has been providing very high earnings. This is also driven by lower rates. The fact that we are seeing the data improving. Expecting it to perform well. We expect some cyclical. I can understand the argument for buying tech stocks. Obviously the working from home thing. Hundreds of billions of dollars of cash on hand. Cyclicals after the Global Economy has been shut down . Nobody has made any revenue. Are we waiting for a disaster to happen economically . No, i dont think so. We have the Monetary Policy supply. It is true that the economic environment is not great at the moment. Matt i heard a click. Anna that did not sound good. Educated, technical year. That sounded like a line going down. We will try to reestablish our link. We will get her back. Im used to hearing that as a kid. Hadre phones even pushbuttons on them. Coming up, polls indicate joe biden taking the lead in three key swing states. This is bloomberg. Matt welcome back. This is the european open. We are 40 minutes away from the cash equity trade. We are looking at european futures. Two months to go until the u. S. Election. Leading donald trump and three key swing states. Arizona, wisconsin, and north carolina. This as investors are increasingly pricing for volatility around the election. The volatility premium has only been higher once in the trackers 16 year history. Right at the beginning of the covid pandemic. She is an equity strategist. All learned you cant really trustee polla that well. Polls that well. How much volatility are you concerned about . Not a lot. Areink a lot of people looking for a major fiscal support. There will be some volatility. Overall, we remain that way. What kind of timing do you have in mind around betting on the results of the u. S. Election . Uncertaintyn for even after the election. Avoid getting wrongfooted by that . You are talking about a dollar cost averaging approach. It is always difficult to get the market timing right. We were thinking of adding cyclical exposure in the u. S. What is really important is ng some sectors matt we are having real problems. With the land lines this morning. You can tell that is a landline. You can hear that. Back toat is taking me my childhood. Maybe somebody doesnt like our questions. We were liking that conversation. We are hoping she will come back. Next, tensions between moscow and berlin escalate. Angela merkel says the russian Opposition Leader was poisoned by a nerve agent. Ofwill get some analysis what is happening in brussels on this front. We will get a roundup of the headlines we have seen. And get some more details on that. Shall we get a first word news update . Germany says test show unequivocally that a russian Opposition Leader was poisoned. A military grade nerve agent was used. Withn will now consult european and nato allies to formulate a plan. Angela merkel says the world is waiting for answers from russia. We are expecting that the russian government explain this incident. Questionsvery serious that only the russian government can answer. They must answer them. Chinese diplomats in the u. S. Face new limits on travel. The move by the secretary of like restrictions on diplomats in china. They will need approval for University Visits and any evidence outside a consular post will need a approval if it is more than 50 people. Boris johnson is trying to win back support after a series of policy reversals. His return to westminster has seen a number of facetoface meetings with mps who are anxious over his handling of the crisis. Not ruling out temporary hikes. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Matt thank you very much. We are looking at futures that are gaining a little bit here in europe. Futures in the u. S. Are down a little bit. After they reached alltime highs in the equity index. Anna this is interestingly we were talking about this earlier. We were talking about what we have heard from the ecb and how that was dominating on the european front. We have also seen the pound a little bit weaker. Lot to talk about when it comes to fx coming through. Exclusivelyll speak after airbnb rebuffed an approach. We will get his thoughts on investing at this point in the cycle. This is bloomberg. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. 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 welcome back to the European Market open, 30 minutes until the start of the session, fairly flat, but European Equity futures dewpoint to the upside, some but European Equity futures point to the upside. Lets get the morning calls this morning. Bloombergs dani burger joins us. Lets start with the dollar. We were talking just before the break about stress with the dollar, but a lot of these that guys in the research i have been reading is all about dollar the zeitgeist. Shape, Technical Analysis says we will get a bounce out of the dollar. Targeting onee, spot 30. The others you see, long positions versus the dollar, so dollar versus canadian, dollar and the swiss franc. They see that popping the spot 98. The caution on the narrative that the dollar can get stronger from here, if you get outside the technical land, there are things that could derail it. The fed meeting we have later this month, as well as real money. Matt well, how will the weakness in the dollar, which we have seen, not today, obviously, but how is that going to affect european stocks . Dani there have been a lot of warnings that the effect here, matt, will be negative for the european darling, so you think of the sectors that have done well, things like tech and health care, these are big exporters, so they are hurt when theeuro is stronger, and if euro continues to be stronger, including tech and health care, look for them to underperform, and in their place, you have set yours, ones that are domestically focused you have that are tos mystically focused. Europeanech rallying, ones that are domestically focused. Despite tech rallying, perhaps the underlying market does not show that, but we are seeing them gearing up for the currency effect. Fidelity says do not overplay the effect of a stronger euro, because if this does happen, and we get a really strong euro, companies will just start to cut costs and find other measures for more efficient trading, matt. Matt all right, dani. Dani burger with a look at currencies for us. Now, here in germany, chancellor merkel has said russian Opposition LeaderAlexey Navalny was poisoned by a military grade nerve agent, sending the ruble tumbling, speaking of fx. Tadeo joins us. Merkel is demanding answers. She has demanded answers from and otherhis issue issues, and she does not typically get any. Going to get any on this, matt . The tone from merkel yesterday was very severe. As you know, she herself presented the findings in a press conference. The foreign minister could have done it, but she decided to take care of it, which shows she treated it very seriously, and the language was severe, saying there is proof that this was poisoning. Someone was trying to silence the person who was really the opposition to putin in russia, and these are questions that at this point, only the russian government can answer. If you look back, there was a similar incident in 2018 in the u. K. Theresa wanted answers but did not get any. What complicates is for germany is perhaps some uncomfortable transactional situation between russia and berlin, and it has to do with the pipe and energy and gas, and the germans also say we look at the geopolitics and the Energy Policy as different things, but it is becoming difficult to separate the two. Anna maria, what kind of response could be get in terms of sanctions . I remember the eu leaders where itthe summit, quickly overtook the agenda, which was supposed to be about brexit, and we saw this dominate. We did see some united action from europe. What are we expecting to see this time . Yes, and the reaction from the head of the European Commission and the external office at the European Union was very clear. We trust the findings from the German Government, and whoever did this has to be brought to justice. The problem here is it is a tricky time for the European Union, because at the same time, you have the situation going on in belarus. There are sanctions coming that way to belarus. The europeans had been trying to get pressure to engage on this, so it is difficult to see how you play the two, how you go tough on putin at the same time are trying to work with him to try to get to a safe situation in colorados, so overall, the timing of this is very tricky work with him to try to get to a safe situation in belarus. Matt the french government, by the way, has unveiled a 100 billion euro economic plan to reboot the countrys economy, maria, after the coronavirus, and a lot of this is very forwardlooking. Can you tell us about that . Maria yes, matt. We finally know what is in this. Money to kickstart the economy. I guess you could see there is very direct stimulus ahead of the election in 2022. Winnuel macron wants to that election, so he would like to see growth get back to the levels before covid, but we are also seeing about 30 billion euros. What is macron has interesting, what i find parti