Citigroup names james frazer Ceo Jane Fraser ceo, making her the first woman to run a wall street bank. Good morning. A massive milestone on wall street. The first female to run a major wall street bank. Is this a High Water Mark . It is a crack in the glass ceiling. We have a lot to cover this morning. Covid cases are kicking up, brexit drama, and, of course, no stimulus bill yet. Nasdaq yesterday closing down 2 , a crack in the tech rebound. Futures are up. 01 this morning. Here are your stoxx 50 futures in europe, showing a slower start. Down nearly 0. 3 . In the eurodollar, 1. 18. What lagarde said about the euro, not too worried, she seemed. Joining us now is janet mui, investment director at Brewin Dolphin. Good morning to you. I want to start with what is going on with the tech rebound we are seeing. I was looking at the bullinger, and you can see the nasdaq unable to get rid of that breakout of the midrange. Is this a signal of more erosion or will stocks start to trade sideways . I think it is because the rally has gone too fast and too much. It has been concentrated in just a few megacaps, where there has been increasing retail interest and not just in buying stocks but buying derivatives of while, which skewed market momentum. It was drivenat by a lot of momentum and as a momentum fades, there will be more of a selloff and volatility, which we think will. Ersist for a while we got a bit more negative news weing of the virus front, have no progress on the stimulus for the is a big market in order for the rally to keep going. I think it is just the environment where stocks are having a recess at the moment. Think the market is pricing in the stimulus bill . On Proper Campaign season, still no stimulus will, and on top of that, disappointing jobless claims. I wonder if the market needs to price that out or do disappointing jobless claims make you want to price in jobless relief . Janet the current economic environment is not great at the moment. The recovery is going on but what were seeing now is a stall in the, group in the economic recovery. Not just in the u. S. That in europe and the uk as well. The only standout is china. In this economic environment, i nk markets are saying whether it is justifiable in the shortterm. Especially with the u. S. Election in two months, where there is still uncertainty. Markets are pricing in, than the polls are projecting a biden presidency, which historically should be negative. I think investors are trying to be cautious. However, i still think the structural environment is still a positive for stocks because of the very accommodative policy and bearish Interest Rates and the potential for stimulus . Annmarie so the fact still remains the backdrop to the equity rally. Morgan talking about yesterday that it will not just be a[laughter] u. S. Election day, it will be a u. S. Election week or two weeks. Our investors starting to price in volatility . Janet this election is like no other, definitely. You cant really compare with the previous elections. History will tell you that with such an economic environment, where we are having a recession isthe election year, there low chance of the president being elected. But this recession was brought bywhether virus not the virus, so it is not a traditional recession. So there is still a lot of uncertainty. History would tell you that a unified democratic government would the negative for stocks. We think that aggressive measures may hit earnings. Still be lots of fiscal stimulus. [indiscernible] annmarie i was looking at gross leverage yesterday, a measure of risk, and we are at top 10 percentile. Why arent investors in this environment not racing in or protecting more to the downside . To be honest, i think a lot of it is because of the liquidity by central banks. Whenever you have the market weakness, you have some risk ahead, everyone will be saying, at least we have the fed who is on hold for the foreseeable havee and potentially will asset purchases from the u. S. Or potentially from japan. There is no alternative market environment where everyone knows that the valuation of certain areas of the market is high, but there is really no alternative but to put these assets in the market because you dont get any yield for other alternatives from other alternatives. Francine janet, you will be staying with us. Continuing the tech conversation, or rather the bifurcation of the technology space, the tiktok up owner is looking to it spend billions of dollars and create hundreds of jobs over the next three years. Lets get more from Juliette Saly in the lion city for us. This came overnight. They are really picking up their in singapore, arent they . Juliette they really are. In the timing is interesting, President Trump demand that tiktok sell its u. S. Operations. We understand bytedance has applied for a digital license from the Monetary Authority in singapore, only one of five the regulator will give out to none banks by december and they plan to invest billions over several years, predominantly setting up singapore as a data center for tiktok. There are more than 200 job openings and positions in singapore, everything from payments to ecommerce and data and privacy. We are seeing south asia open up as an alternative to other areas as these hostilities from china continue with the likes of the u. S. And australia. From Bloomberg Intelligence tells us singapore is highly attractive to tech firms, the workforce is tech multilingual. Longterm, this could provide a big boon for Investor Sentiment in singapore too, we have seen an underperformance in the index so far in 2020, but there has also been quite a lot of big market moves happening in singapore. Singapore airlines announcing it will let go of 4300 jobs due to the pandemic. So this will be a big boost for the lion city . Annmarie certainly. We keep seeing job losses across sector. Ines this adds to the more than 400,000 from that sector alone around the world. Juliette saly, thank you very much for that. Thats good to the first word news with laura wright. Laura europe has overtaken the u. S. In new coronavirus infections. The e. U. , norway, iceland and it didnt sign reported more than cases thursday. The region has emerged as the latest hotspot after bringing the pandemic under control earlier in the year, with surges in countries including spain and france. The odds of another round of u. S. Fiscal stimulus have been dropped. Senators blocked another republican proposal in the region of 500 billion to 700 billion. Democrats are looking for 2. 2 trillion. Minority leader Chuck Schumer told reporters he hopes the result will prompt gop lawmakers to come to the negotiating table. Rio tintos ceo is stepping down amid concerns over the destruction of Australian Heritage sites. He came under pressure to step explosions ate to a mining area in a 46,000yearold sites, which archaeologists say is among the dust in the country. Is among the in the country. Jp morgan is requiring most of its sales and senior employees to return to the office soon. Managing directors and executive directors will oversee subordinates. But those with childcare and other Health Issues are not required 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. I am laura wright. This is bloomberg. Annmarie laura, thank you so much. Coming up, three weeks. That is how long the e. U. Is giving Boris Johnson to scrap plans to override the brexit Withdrawal Agreement or risk legal action. And as new york prepares to mark the anniversary of the worst terrorist attack on american soil, we speak to the chairman and ceo of cpw. It lost more than a quarter of its employees in those attacks of 9 11. You are looking at live pictures of manhattan as the city wakes up. We will bring you live coverage of 9 11 memorial events throughout the day. This is bloomberg. Annmarie good morning. Iis is bloomberg daybreak, am Annmarie Hordern. Set totrade talks are continue next week, despite the uk rejecting the e. U. s ultimatum to scrap the plans for the Withdrawal Agreement. Economy and Financial Affairs commissioner told bloomberg it is up to the British Government to reestablish trust between the two sides. Verydeed, the bill was between themaging u. K. And the e. U. So what we are stressing now is that it is up to the British Government to work to reestablish this trust. Our is running, because assessment is that either we reach this agreement within one month from now you know that the formal deadline is the end of the year, but to have an agreement, we need to have decisions taken at the beginning of next month, beginning of october. So the reestablishing of trust, which means the changes in this bill that was introduced in recent days is of essence, and it is very urgent. If the u. K. Does not back down, will there be a hard brexit . Well, as we always said, this is not the european , this is not the european will, this is not the solution that we envisage. But you need two parts to have a deal. Anyf there is not seriousness in respecting the agreements that we are on the basis of, the negotiation that is now going on, i think things will get very difficult among the e. U. And the uk. We are now working for this, not at all. We are not working for a hard brexit. Trustfuled to have a partner to have a deal. We heard today from the ecb that they revised upwards their 2020 forecast, but they see the stabilization of any rebounds next year. What is your assessment of the european economy right now, what letter of recovery are we in . , in general, with a similar analysis of the one of the ecb, our valuation, we will have our winter forecast in november. Our evaluation is that we will have a rather tough recovery butcially in june and july, perhaps according to highfrequency data and new granular data, the speed of the recovery slows down in recent weeks, in august. So i think we still have in aroundf us uncertainty the strength and the speed of recovery. To reinforceis confidence in the markets, in the citizens, and in the business community. This is what with our recovery plans, we will try to do in the next weeks. Because uncertainty is still ofre, and we are not sure the speed of the recovery that is underway . Annmarie e. U. Commissioner for economy and finance speaking exclusively to bloomberg yesterday. For more, we still have janet bewley from Brewin Dolphin. Ashe drama continue the drama continues with brexit, how do you price this in, and the latest agreements regarding the Withdrawal Agreement, does that toys on the wider trade agreement they are trying does it poison the wider trade agreement theyre trying right now to get a deal on . Janet absolutely. Indeed, the pound has strengthened. We think that markets have not actually priced in the probability of the Nodeal Brexit potentially by the end of the year, because i think markets were very focused on the covid situation, on the liquidity side. Happened, if there are more negative tensions, we will head into a hard brexit. We all know that in the past few punishthe market will any negative deals regarding brexit. In terms of being toxic to international relations, absolutely, the amendment to this bill is actually breaking International Law. Not only would the e. U. Not be happy about it, i think the u. S. Has come out and said we cannot make a trade deal with the uk because it is breaking International Law . Annmarie yes, nancy pelosi said forget any u. S. The uk trade deal if this happens. I wonder if that is another risk of the market niche to suggest that some of the risk of the market needs wonder if that is another risk that the market is today to digest . Previouscording to analysis and surveys, it put the probability of a hard brexit at 100 and it can go as well as 110 to the dollar. So, yes, we may will see a volatility on sterling and weakness from here . Annmarie janet mui stays with us. We will be talking about the ecb next. Coming up, Christine Lagarde says the ecbs keeping an eye on europes, but she doesnt sound the alarm just yet. We analyze the latest meeting. This is bloomberg. Overall, the balance of risks to the euro area Growth Outlook is seeking to remain on the downside. We decided to maintain our monetary policy, to maintain our accommodative monetary policy, and certainly, under current circumstances, it is very likely that the full envelope of debt will be used for the purpose of developing those policies. We do not target the exchange rate. Our mandate is price stability. Extent thatthe appreciation of the euro exercised in negative pressure on prices, we have to monitor carefully such a matter. The strength of the recovery remains surrounded by significant uncertainty as it continues to be highly dependent on the future evolution of the pandemic and the success of containment policies . Annmarie that was ecb president Christine Lagarde, saying the surge in the euro must be monitored but without signaling any pressing need to adjust monetary policy. The currency jumped to the highest in more than a week. Janet mui from Brewin Dolphin is still with us. Concern . A lack of . N the euro at what level do they start to get concern . What does a higher euro mean and when does that anxiety when do they start to talk about it publicly . Janet i can sympathize with the ecb actually. It is very hard to control the currency level. It is not their mandate but it is out of the market expectation. It will euro start to get nervous for exposed countries like germany. Yet. E not there the ecb has a ready putting so much stimulus measures 1. 3 5 trillion pandemic emergency program, negative Interest Rates, what more can they do . To impactally need the euro, it would have to have a very bold policy, which sounds difficult for now given so much they have done already . Annmarie yes can lead euro definitely stole the show yesterday. I am interested in the europound, given the weakness we could see the pound, given the brexit negotiations and where that goes. We have an uptick of covid cases as well in europe, actually surpassing cases in the u. S. Yesterday lagarde also revealed new projections, saying we now expect the economy to expected. Ess than is there potentially a bigger risk to what they are seeing in their projections, given the rising covid cases we are seeing in europe . Janet absolutely. It is so hard to make Economic Projections nowadays. You would be challenged by any authorities around the world. There is so much uncertainty surrounding the resurgence in cases. That is absolutely key, because when you have a resurgence in lockdowns,ave local more rules regarding how many people can go out together, and more quarantine measures for arrivals from the e. U. Like greece and portugal, that will definitely be a hit to sentiment because consumers and businesses, when you have a traveling, ithe is bound to hit the economy. It is very tough to factor in the kind of projection when talking about a few or three quarters ahead . Annmarie janet, we have to live at there. Thank you so much for your time this morning, janet kne mui, investment director at Brewin Dolphin. 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. Good morning. From bloombergs European Headquarters in the city of london, i am Annmarie Hordern. Bloomberg daybreak europe. Tech tumbles again. Heavyweights in the u. S. Cant hold on to resent reebonz. Global stocks had for a second week of losses. An ultimatum that you obama is giving birth the e. U. Is s johnson one an ultimatum not to back down on the exit deal. And citigroup names james james frazer ceo, mccue her the first woman to lead a wall street bank. Well get to the top story in a moment. We had the faltering rebound in the tech sector yesterday. You could see it at the top of the board and nasdaq 100 closed more than 2 down. Though there is a reprieve in features this morning. Euro stoxx 50, though, to the downside. Eurodollar was the star of the show yesterday. We will be looking at the pound throughout the morning, under some pressure from fresh brexit drama. Richard jones says we are a matter of weeks, potentially days away from 0. 95. Now to our top stories on the financial industry. Citigroup has named a new ceo. Jane fraser will become the first female to lead a wall replacing the ceo retiring in february, after eight years on the job. Candace, thank you for joining us this morning. What does the appointment say about how far wall street has come on gender issues . Many are obviously welcoming this move, but still some say it is a be steps, not the High Water Mark just yet. First and foremost, lets give credit where it is due, citigroup has certainly made history with this announcement. It is part of a creeping change across corporate america, 31 women already lead s p 500 companies. So it is really great news to see a woman in the top job of up our for wall street bank. That said, it will emphasize how rare the situation remains. The finance industry in the u. S. And really in march of the world much of the world still has a long way to go when it comes to gender equity, not just in ceo jobs but equally among the ranks of senior management. Example,he u. S. , for the top groups that oversee the six x, only j. P. Morgan has six banks, on the jp morgan hasnt even gender split. Good news, but i think it is also going to get folks asking questions about what is next for j. P. Morgan, for bank of america or Morgan Stanley and the rest of the industry . Annmarie certainly. I think the spotlight will be on the other major wall street bankstell us a bit about jane fraser. What kind of expe