Transcripts For BLOOMBERG Bloomberg Markets European Open 20

BLOOMBERG Bloomberg Markets European Open July 12, 2024

Markets slump as warnings from the fed on the need for more stimulus ignites fresh jitters. Powell and mnuchin take the stage again today. Partial measures. France cracks down on gatherings and bars but will not impose a full lockdown to stem a surge in virus cases. Do it like the germans. Richie soon act will set out a new crisis plan to protect jobs today. One proposal is for a wage top up scheme for workers who return parttime. Otherwise known here as we are under no an hour away from the start of cash trading in europe. Big drops anticipated for european stocks. You can see ftse futures down 9 10 of 1 . Dax futures down 1 . Down even futures more. U. S. Futures dont look as bad. Remember, u. S. Stocks took a big hit yesterday. Europe escaped losses. Europe has catch up play on the way down. Set, at least in the s p and dow, to stabilize. Anna absolutely. Thats a crucial transatlantic difference in time. We ended in very different places yesterday. Lets have a look at the gmm. You can see how asia is responding to the downdraft from u. S. Stocks yesterday. Asian equities down considerably. Down 1. 5 . South korea under pressure. The japanese market is fairly broadbased. Weve seen some money going into dollars. The dollar index is now fairly flat. We see weakness on the gmm and the emerging market space in asia. Dollarhe australian making some moves to the downside. A lot of concern around fiscal stimulus in the headlines. The fed making the case unanimously. Many of those voices coming through asking for more. We have a weak global stocks picture as markets gradually start to lose hope, it seems, in fiscal stimulus. We are down 10 on u. S. Stocks. A week september. Lets get into a markets conversation with mark cudmore, are bloomberg mliv editor. It seems weve returned to being preoccupied by fiscal stimulus in the u. S. This is connected to the virus story. Europeus story dominates. Perhaps uptick in the data out of the u. S. As well. Investors asking whether anything is possible before or after november. Mark the stimulus has some extra focus this week. That has been the theme since early august. We expected to get a stimulus deal ages ago. There has been negative sentiment. With the fed comments, there is emphasis that the stimulus needs to come through. Its a bad thing its not there. Its hardly a new development. Story little bit of that fitting the narrative. The narrative was that we already saw this risk aversion. Weve been talking about it. Many of the key assets started turning lower. The fundamental ones. Metal started turning lower. Thats feeding into the very strategic positions in tech and fx. Fx finally joined the party. Thats where the stretch positions are. Weve known for some time. We knew before the fed comments yesterday. We know we are in a riskaverse environment. Just because the fed mentioned, we still have stimulus, it doesnt help. I wouldnt put all the blame on that. Matt what do you think about the Insider Selling reports . A story showing that on the s p 500, insiders selling has picked up at the fastest clip since 2012. Mark they are being very smart about it. It makes sense. , forackdrop here is several months, weve known that valuations in stocks were stretched because we had this incredible stimulus debate. We could not see this diversions forever. We could not see a world where stocks keep growing exponentially while the economy is struggling. The Global Economy is going to be in a smaller cycle the nastier than last year. That cant keep explaining it forever. Theres only a finite extent of that trade. It is debatable when it was. One of the things that have helped changed that narrative is the fact that stimulus didnt come through from early august. Now we are seeing this idea that, maybe time to still still sox. Sell stocks. Is this a major turning point . Probably nuclear action. It will be a painful correction. We had such a powerful move higher. The nasdaq climbed 80 since march. It 30 drawdown is irrelevant. It still puts us at record highs. It might be a correction. It might last two months. It might last until midoctober. It can still be very painful. Anna do you think its right to draw parallels to march . Weve come a long way. I can march, that was deleveraging. That was a search for a system from Central Banks and fiscal activism. Both have done a lot since then. On the mliv blog, you have been asking which assets will suffer most from deleveraging. People describe what happened in march as deleveraging. What are the parallels, if any . Which are the assets that will suffer most . Mark the desire to compare to march is complete we understandable. I think there are quite a few key distinctions. First of all, back then, we were trading a shock. It was a whole new narrative. Are not new. Now its just like, the pricing has changed. The emphasis has changed. On a positive note, the Central Banks and the fed have made care that they will not let this turn into a credit crisis. We expect some highprofile bankers. We expect delinquencies to rise. There will be a negative credit backdrop. Thats different than a credit crisis. In march, we feared a credit crisis. The stimulus had not been brought out yet. Bankers have shown an extraordinary willingness to do things that we were not seeing as conceivable nine months ago. That provides a backstop for markets in extreme situations. The problem is, they already used a lot of ammo. They fired a lot of bullets. It will be a extreme situations. You are in an environment where its likely that the correction is quite deep. Ultimately, it will not be the panic stations we saw in midmarch. People do believe that once it starts getting really bad, and we can again. Matt theres a great story on the bluebird overnight by craig torres. It talks about the fed having this Financial Stability unit that was created in 2000 2010. It took the first early steps in march to make sure that there was no financial crisis, no fiscal crisis like the one that we saw back in the great financial crisis. Thanks very much for joining us. Bloomberg mliv managing editor. You can join the debate on todays question of the day which is, which assets suffer most from deleveraging. Reach out to us at the mliv team. Lets get the bluebird first word news now for that. We go to laura wright in london. Laura no murder charges in the Fatal Shooting of breonna taylor. A grand jury chose not to file the indictment against any of the Police Officers involved. A single officer was charged with wanton endangerment for firing into neighboring apartment. The decision has sparked demonstrations. At least two Police Officers have been shot. President donald trump says the Supreme Court will likely have to decide the outcome of the gnome of her november election. Hes arguing he needs to confirm a new justice to break any type. Hes casting doubt on the validity of the election, adding to his criticism of mailin voting. The u. K. Is considering its first vaccine studies that would expose Healthy People to the virus. The idea of challenge trials has gained momentum recently. A growing number of volunteers have signed up to take part. The study can speed up research but raises ethical questions about exposing people to a fatal virus. Global news 24 hours a day, on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. This is bloomberg. Anna thank you very much. Coming up on the program, Jerome Powell pleads for more stimulus. Similar points from other fed speakers. The white house seems reticent. Stocks tank. Disagreements on both sides of the aisle in washington on the subject. We will discuss, next. As bluebird. What we are saying is that in a normal recession or if we were back in february, obviously getting to 2 and moderately exceeding 2 would be within our forecast. Because of the depth of the shock, the economy has to recover. Recoveryseline, that relevant to the last downturn will occur within about three years. Point,e get to that overshooting is just an academic point. We want to get the economy to 2 inflation. We think along with fiscal support, that can happen. Fund manager after fund manager has come on the show and said we are at risk of creating an asset price by the bubble. How does that factor into your calculus about when to tighten policy . Thats a good question. Is always anbility important consideration. We get regular briefings on Financial Stability. Twiceue it white yearly. Its important to remember, we have a dual mandate from congress. Maximum employment and price stability. If we are to become concerned that Financial Stability at our maximum employment and price stability goals at risk, we would have to factor that in. We also believe that Monetary Policy, raising or lowering rates, is a wanton instrument. Our preference is to work with other agencies on regulation supervision, bank liquidity, and other dimensions than simply raising or lowering rates to deal with Financial Stability. Another way of asking this is, how effective can the fed be without more fiscal support or another round in washington thats it that is substantial . Indicated and we all believe, fiscal policy is for the congress and the executive branch. When asked, we say that we think additional fiscal support will likely be needed. Its very clear that the cares act, which passed in march, was really historic government response to a historic crisis. A 3 trillion package providing significant support to the economy. The economy made a lot of progress. 11 million jobs have returned. Theres a deep bowl. Theres a high rate of unemployment. We have a lot of small and mediumsized businesses that are suffering. Additional fiscal support will likely be needed. Matt that was the fed chair Richard Clarida. Sounding the alarm on the need for fiscal support. He wasnt the only one in the last 24 hours. We heard from Charles Evans and Jerome Powell. All signaling more is needed from congress. The prospect of broad stimulus was downplayed by white house Economic Advisor larry kudlow at a subsequent briefing. Sensible, say to you, efficient, targeted measures might be very helpful. I dont think we need another gigantic multi trillion dollar package. Byt we are joined now andrew pease. What do you think about the in and thehe u. S. Is reaction of markets . Is more stimulus needed . Andrew more stimulus is needed. Part of the correction we are getting. [inaudible] we seem to be heading into march again. More stimulus is needed. Whether we get it before the election is back in question. We will certainly see more stimulus. Not just in the u. S. Light. Eading into march thats a nice phrase. How does that translate into Market Reaction and other assets . The dollar benefited back in the spring summer. The dollar seems to have broken its downtrend recently as well. How are you expecting the greenback to respond . A lot of people are concerned about the u. S. In terms of fiscal stimulus, elections, volatility. I suppose you would expect to see people going into the greenback. Andrew the greenback will do what it normally does. [inaudible] the dollar will do what it normally does. It will take up its save haze and haven characteristics. Step back from the current volatility and look ahead. I think that that decadelong rally with the u. S. Dollar is probably finish now. Over the next 20 months, the dollar will probably be on a downtrend. We will see more Dollar Strength of markets continue to weaken. Matt if we are on a bigger downtrend for the dollar, and the u. S. Isnt getting the stimulus that the market thinks its it needs, is it time to buy european stocks . Have you already your rotated into european stocks . Andrew we have not rotated it all yet. On a longerterm basis, nonus stocks look like a better proposition. The challenge with rotating into nonus stocks is that that has not been a great strategy over the last decade. The last decade has been the decade of dominance of the u. S. Share market and mega cap names. Thosee need to see recovery dynamics come into play. Weve had a hint of it over the last three months. We need to get through this level of volatility. We are starting to see a concerted move towards more stimulus measures, particularly if we get a democratic clean sweep in november. That would signal that we could get a big stimulus package early next year. That would be a very good signal to say, yes, thats when the normal recovery dynamics can start to come into play. That will favor nonus over u. S. More valued cyclical stocks over the big mega cap tech names. Anna thanks very much. Stay with us. Andrew pease. Up next, france clamps down. Written reaches for its checkbook. We look at how europe is fighting rising virus cases and the impact on the economy. This is bloomberg. Anna welcome back. 7 22 here in london. Futures point to the downside. A lot of catching up to do with the u. S. Selloff. French announced new steps to fight covid19. Bars will close earlier. Public gatherings and cities will be limited. The government isnt considering another nationwide lockdown. The u. K. Chancellor sets out a new plan to protect jobs and rescue businesses. Lots going on from abroad. In terms of the virus and its economic effects. Andrew piece is still with us. I suppose we must be nervous about the services sector, then. How do you position with that in mind . Andrew we have that coming through from the european pmis yesterday. What we know, we see how this particular episode plays out. Particularly into these downturns, the s p 500 is up 10 . We need to see more panic and markets before we start positioning against it. See mode tot and see how this plays out. At some point, if we get to a point where people are getting a nervous getting nervous and enough, theres not enough evidence yet. Stepping against this downward trend. Matt are you encouraged by the stimulative efforts out of European Countries and the u. K. . It looks like we will get something more from richie soon act and the European Central bank. It is going to sell banks tltros. Money,banks to borrow possibly to the tune of hundreds of billions of dollars again. Does that make the european situation different from the u. S. . Andrew its an interesting point. One of the things i was worried about heading into this downturn would be that even though we would not have as bad a Virus Outbreak as we had in march, there would be less capacity for Central Banks and the fiscal side to respond. The news we are hearing about the fiscal measures coming through, the fact we are hearing about this, thats quite promising. Thats very positive points. We are seeing politicians prepared to step up now. If we get a second wave of Virus Outbreaks, theres that fiscal backstop coming through. Thats a really positive point. Tltros, do you get a sense that this can be a game changer . Some analysis suggests that banks are very wellfunded. Maybe its a lack of demand. Businesses will not wanting to take on more debt during these troubled times. Andrew Central Banks have done so much. Fiscal dominates over monetary right now. What the politicians do will be more info impactful than what the central bank does. That doesnt mean they cant do anything. In the u. K. , the bank of england has been looking to take rates negative. Tltros where they pay banks to borrow money can be effective. Ass not as impactful at at the start of the crisis. The fiscal. Side dominates the monetary side. Matt thanks for joining us. The global head of Investment Strategy at russell investments. I want to point out that we are seeing continuing covid cases surging across europe. As weve been talking about, france is introducing new restrictions to stem the spread of the virus. That comes on the heels of lockdowns in madrid and increased restrictions in the u. K. We will discuss all of that and the effects of it, next. This is bloomberg. Anna welcome back. Half an hour to go until the start of the cash Equities Trading session. Just to tell you a little about about french utilities. Futures set to open to the downside in half an hours time. I dive into french utilities for a moment. They may sweeten their bid for on she stake in sewers. This is according to the ceo. We continue to watch that launch. The ceo may take a serious takeover bid. Lets get into our morning calls for now. Juliette saly joins us from singapore. A call from j. P. Morgan about how trumps tweets could affect rates markets. We are gearing up to early november. We never know. The tweet count might go up. Juliette thats right. J. P. Morgan looking at their index. That infamous tweet from President Trump back in 2017. This is where they gauge the volatility on the u. S. Treasury market when the president tweets through Interest Rate delivery of derivatives. The volatility has weekend since we started to see a huge rise in President Trumps tweets at the height of the pandemic in march and may, they are starting to see some words like ventilators play into this market. Its an interesting change your go. Words like china and product produced the biggest effects. Should the topic of these pronouncements turn to topics like covid19, the election, and geopolitics, it could be a more bullish factor for volatility heading into november. Matt a lot of stories surrounding metals this morning. Morgan stanley sees upside in mining shares. Juliette they certainly do. Weve been talking about what shape this recovery is going to be. They are seeing it will be av rape a vshaped recovery. That should be a good boost for mining equities and also for commodities as a whole. The uptick is copper. They are saying that will be in eight be a winner. When it comes to money, equities look wellpositioned to do well in this scenario. The top Mining Equity picks go around the globe. Anna thanks very much. Juliette saly in singapore. Staying in the asian region. Getting latebreaking lines coming through from hong kong on the security situation. Hong kong Insider Selling<\/a> reports . A story showing that on the s p 500, insiders selling has picked up at the fastest clip since 2012. Mark they are being very smart about it. It makes sense. , forackdrop here is several months, weve known that valuations in stocks were stretched because we had this incredible stimulus debate. We could not see this diversions forever. We could not see a world where stocks keep growing exponentially while the economy is struggling. The Global Economy<\/a> is going to be in a smaller cycle the nastier than last year. That cant keep explaining it forever. Theres only a finite extent of that trade. It is debatable when it was. One of the things that have helped changed that narrative is the fact that stimulus didnt come through from early august. Now we are seeing this idea that, maybe time to still still sox. Sell stocks. Is this a major turning point . Probably nuclear action. It will be a painful correction. We had such a powerful move higher. The nasdaq climbed 80 since march. It 30 drawdown is irrelevant. It still puts us at record highs. It might be a correction. It might last two months. It might last until midoctober. It can still be very painful. Anna do you think its right to draw parallels to march . Weve come a long way. I can march, that was deleveraging. That was a search for a system from Central Banks<\/a> and fiscal activism. Both have done a lot since then. On the mliv blog, you have been asking which assets will suffer most from deleveraging. People describe what happened in march as deleveraging. What are the parallels, if any . Which are the assets that will suffer most . Mark the desire to compare to march is complete we understandable. I think there are quite a few key distinctions. First of all, back then, we were trading a shock. It was a whole new narrative. Are not new. Now its just like, the pricing has changed. The emphasis has changed. On a positive note, the Central Banks<\/a> and the fed have made care that they will not let this turn into a credit crisis. We expect some highprofile bankers. We expect delinquencies to rise. There will be a negative credit backdrop. Thats different than a credit crisis. In march, we feared a credit crisis. The stimulus had not been brought out yet. Bankers have shown an extraordinary willingness to do things that we were not seeing as conceivable nine months ago. That provides a backstop for markets in extreme situations. The problem is, they already used a lot of ammo. They fired a lot of bullets. It will be a extreme situations. You are in an environment where its likely that the correction is quite deep. Ultimately, it will not be the panic stations we saw in midmarch. People do believe that once it starts getting really bad, and we can again. Matt theres a great story on the bluebird overnight by craig torres. It talks about the fed having this Financial Stability<\/a> unit that was created in 2000 2010. It took the first early steps in march to make sure that there was no financial crisis, no fiscal crisis like the one that we saw back in the great financial crisis. Thanks very much for joining us. Bloomberg mliv managing editor. You can join the debate on todays question of the day which is, which assets suffer most from deleveraging. Reach out to us at the mliv team. Lets get the bluebird first word news now for that. We go to laura wright in london. Laura no murder charges in the Fatal Shooting<\/a> of breonna taylor. A grand jury chose not to file the indictment against any of the Police Officers<\/a> involved. A single officer was charged with wanton endangerment for firing into neighboring apartment. The decision has sparked demonstrations. At least two Police Officers<\/a> have been shot. President donald trump says the Supreme Court<\/a> will likely have to decide the outcome of the gnome of her november election. Hes arguing he needs to confirm a new justice to break any type. Hes casting doubt on the validity of the election, adding to his criticism of mailin voting. The u. K. Is considering its first vaccine studies that would expose Healthy People<\/a> to the virus. The idea of challenge trials has gained momentum recently. A growing number of volunteers have signed up to take part. The study can speed up research but raises ethical questions about exposing people to a fatal virus. Global news 24 hours a day, on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. This is bloomberg. Anna thank you very much. Coming up on the program, Jerome Powell<\/a> pleads for more stimulus. Similar points from other fed speakers. The white house seems reticent. Stocks tank. Disagreements on both sides of the aisle in washington on the subject. We will discuss, next. As bluebird. What we are saying is that in a normal recession or if we were back in february, obviously getting to 2 and moderately exceeding 2 would be within our forecast. Because of the depth of the shock, the economy has to recover. Recoveryseline, that relevant to the last downturn will occur within about three years. Point,e get to that overshooting is just an academic point. We want to get the economy to 2 inflation. We think along with fiscal support, that can happen. Fund manager after fund manager has come on the show and said we are at risk of creating an asset price by the bubble. How does that factor into your calculus about when to tighten policy . Thats a good question. Is always anbility important consideration. We get regular briefings on Financial Stability<\/a>. Twiceue it white yearly. Its important to remember, we have a dual mandate from congress. Maximum employment and price stability. If we are to become concerned that Financial Stability<\/a> at our maximum employment and price stability goals at risk, we would have to factor that in. We also believe that Monetary Policy<\/a>, raising or lowering rates, is a wanton instrument. Our preference is to work with other agencies on regulation supervision, bank liquidity, and other dimensions than simply raising or lowering rates to deal with Financial Stability<\/a>. Another way of asking this is, how effective can the fed be without more fiscal support or another round in washington thats it that is substantial . Indicated and we all believe, fiscal policy is for the congress and the executive branch. When asked, we say that we think additional fiscal support will likely be needed. Its very clear that the cares act, which passed in march, was really historic government response to a historic crisis. A 3 trillion package providing significant support to the economy. The economy made a lot of progress. 11 million jobs have returned. Theres a deep bowl. Theres a high rate of unemployment. We have a lot of small and mediumsized businesses that are suffering. Additional fiscal support will likely be needed. Matt that was the fed chair Richard Clarida<\/a>. Sounding the alarm on the need for fiscal support. He wasnt the only one in the last 24 hours. We heard from Charles Evans<\/a> and Jerome Powell<\/a>. All signaling more is needed from congress. The prospect of broad stimulus was downplayed by white house Economic Advisor<\/a> larry kudlow at a subsequent briefing. Sensible, say to you, efficient, targeted measures might be very helpful. I dont think we need another gigantic multi trillion dollar package. Byt we are joined now andrew pease. What do you think about the in and thehe u. S. Is reaction of markets . Is more stimulus needed . Andrew more stimulus is needed. Part of the correction we are getting. [inaudible] we seem to be heading into march again. More stimulus is needed. Whether we get it before the election is back in question. We will certainly see more stimulus. Not just in the u. S. Light. Eading into march thats a nice phrase. How does that translate into Market Reaction<\/a> and other assets . The dollar benefited back in the spring summer. The dollar seems to have broken its downtrend recently as well. How are you expecting the greenback to respond . A lot of people are concerned about the u. S. In terms of fiscal stimulus, elections, volatility. I suppose you would expect to see people going into the greenback. Andrew the greenback will do what it normally does. [inaudible] the dollar will do what it normally does. It will take up its save haze and haven characteristics. Step back from the current volatility and look ahead. I think that that decadelong rally with the u. S. Dollar is probably finish now. Over the next 20 months, the dollar will probably be on a downtrend. We will see more Dollar Strength<\/a> of markets continue to weaken. Matt if we are on a bigger downtrend for the dollar, and the u. S. Isnt getting the stimulus that the market thinks its it needs, is it time to buy european stocks . Have you already your rotated into european stocks . Andrew we have not rotated it all yet. On a longerterm basis, nonus stocks look like a better proposition. The challenge with rotating into nonus stocks is that that has not been a great strategy over the last decade. The last decade has been the decade of dominance of the u. S. Share market and mega cap names. Thosee need to see recovery dynamics come into play. Weve had a hint of it over the last three months. We need to get through this level of volatility. We are starting to see a concerted move towards more stimulus measures, particularly if we get a democratic clean sweep in november. That would signal that we could get a big stimulus package early next year. That would be a very good signal to say, yes, thats when the normal recovery dynamics can start to come into play. That will favor nonus over u. S. More valued cyclical stocks over the big mega cap tech names. Anna thanks very much. Stay with us. Andrew pease. Up next, france clamps down. Written reaches for its checkbook. We look at how europe is fighting rising virus cases and the impact on the economy. This is bloomberg. Anna welcome back. 7 22 here in london. Futures point to the downside. A lot of catching up to do with the u. S. Selloff. French announced new steps to fight covid19. Bars will close earlier. Public gatherings and cities will be limited. The government isnt considering another nationwide lockdown. The u. K. Chancellor sets out a new plan to protect jobs and rescue businesses. Lots going on from abroad. In terms of the virus and its economic effects. Andrew piece is still with us. I suppose we must be nervous about the services sector, then. How do you position with that in mind . Andrew we have that coming through from the european pmis yesterday. What we know, we see how this particular episode plays out. Particularly into these downturns, the s p 500 is up 10 . We need to see more panic and markets before we start positioning against it. See mode tot and see how this plays out. At some point, if we get to a point where people are getting a nervous getting nervous and enough, theres not enough evidence yet. Stepping against this downward trend. Matt are you encouraged by the stimulative efforts out of European Countries<\/a> and the u. K. . It looks like we will get something more from richie soon act and the European Central<\/a> bank. It is going to sell banks tltros. Money,banks to borrow possibly to the tune of hundreds of billions of dollars again. Does that make the european situation different from the u. S. . Andrew its an interesting point. One of the things i was worried about heading into this downturn would be that even though we would not have as bad a Virus Outbreak<\/a> as we had in march, there would be less capacity for Central Banks<\/a> and the fiscal side to respond. The news we are hearing about the fiscal measures coming through, the fact we are hearing about this, thats quite promising. Thats very positive points. We are seeing politicians prepared to step up now. If we get a second wave of Virus Outbreak<\/a>s, theres that fiscal backstop coming through. Thats a really positive point. Tltros, do you get a sense that this can be a game changer . Some analysis suggests that banks are very wellfunded. Maybe its a lack of demand. Businesses will not wanting to take on more debt during these troubled times. Andrew Central Banks<\/a> have done so much. Fiscal dominates over monetary right now. What the politicians do will be more info impactful than what the central bank does. That doesnt mean they cant do anything. In the u. K. , the bank of england has been looking to take rates negative. Tltros where they pay banks to borrow money can be effective. Ass not as impactful at at the start of the crisis. The fiscal. Side dominates the monetary side. Matt thanks for joining us. The global head of Investment Strategy<\/a> at russell investments. I want to point out that we are seeing continuing covid cases surging across europe. As weve been talking about, france is introducing new restrictions to stem the spread of the virus. That comes on the heels of lockdowns in madrid and increased restrictions in the u. K. We will discuss all of that and the effects of it, next. This is bloomberg. Anna welcome back. Half an hour to go until the start of the cash Equities Trading<\/a> session. Just to tell you a little about about french utilities. Futures set to open to the downside in half an hours time. I dive into french utilities for a moment. They may sweeten their bid for on she stake in sewers. This is according to the ceo. We continue to watch that launch. The ceo may take a serious takeover bid. Lets get into our morning calls for now. Juliette saly joins us from singapore. A call from j. P. Morgan about how trumps tweets could affect rates markets. We are gearing up to early november. We never know. The tweet count might go up. Juliette thats right. J. P. Morgan looking at their index. That infamous tweet from President Trump<\/a> back in 2017. This is where they gauge the volatility on the u. S. Treasury market when the president tweets through Interest Rate<\/a> delivery of derivatives. The volatility has weekend since we started to see a huge rise in President Trump<\/a>s tweets at the height of the pandemic in march and may, they are starting to see some words like ventilators play into this market. Its an interesting change your go. Words like china and product produced the biggest effects. Should the topic of these pronouncements turn to topics like covid19, the election, and geopolitics, it could be a more bullish factor for volatility heading into november. Matt a lot of stories surrounding metals this morning. Morgan stanley sees upside in mining shares. Juliette they certainly do. Weve been talking about what shape this recovery is going to be. They are seeing it will be av rape a vshaped recovery. That should be a good boost for mining equities and also for commodities as a whole. The uptick is copper. They are saying that will be in eight be a winner. When it comes to money, equities look wellpositioned to do well in this scenario. The top Mining Equity<\/a> picks go around the globe. Anna thanks very much. Juliette saly in singapore. Staying in the asian region. Getting latebreaking lines coming through from hong kong on the security situation. Hong kong Police Arrested<\/a> the activist joshua wong over the october 2019 protests. Back in the autumn of 2019, we were very focused on what was going on on the streets of hong kong. Joshua wong is a very wellknown activist. He has been arrested. His twitter account says he has been arrested in hong kong. Lets get a Bloomberg Business<\/a> flash with laura wright. Laura j. P. Morgan is set to pay 1 billion to resolve u. S. Market manipulation investigations. The record sediment involving alleged the accord would end probes by the Justice Department<\/a> and industry regulators into whether antitreasury traders rig markets. Raiseoup is looking to 17. 5 billion in its hong kong seer sell. Sources tell us that wont lock in any cornerstone investors. Its confident there will be plenty of demand for one of the largest equity deals in the city. They invited big investors for a shanghai sale. Paying alaying record fine to settle the nations biggest breach of Money Laundering<\/a> laws. It cap sasol get that shredded the banks reputation and caused the former chief executives job. Its more than the 900 million aussie dollars westpac put aside for the penalty. Thats your Bloomberg Business<\/a> flash. Matt thanks very much. Thats your business flash. With new covid cases surging across europe, brand is introducing new restrictions to stem the spread of the virus including closing bars earlier in the easing and limiting public of the rings. The government is not considering a new nationwide lockdown. Joining us now is maria tadeo for more. . Hat are the reaction so far maria the main message is that this is no plan for a national lockdown. Instead, very tailored, very specific measures that target specific areas that have become problematic. Overall, 11 areas including paris and the city of marseille which is becoming the hotspot in france. Thats where you will see restaurants be completely shut. To will also see limitations the amount of social gatherings you can have. When you look at a city like paris, the government has said they want to see bars and restaurants shut from 10 00 next week. The logic is that the longer you go into the night, you have more to drink, you dont respect social distancing rules. That was the main point here. Its interesting for future lockdowns in europe. Fulldea you dont go for a one. Measures that go across the country dont actually work. You have to make this tailored to the situation according to the region in question. About infection with coronavirus across europe. A number of officials have now gone into quarantine because of exposure to people with coronavirus. We got a glimpse at some of the names. Give us the latest. Maria it has not been a good week. You have all meyer. You head of the european council. You have the head of the foreign diplomacy and the trade commissioner into quarantine. Theyve come in contact with people who tested positive. The french prine asked minister tested positive himself. , thesef these gatherings highprofile meetings in capitals across europe. They are becoming problematic. Highprofile officials are becoming infected. This has repercussions. This is dangerous for heads of state who dont want to get coronavirus for obvious reasons. Going forward, its a valid question whether we will see a return of not meeting in person but doing this via conference. Thanks very much. Giving us the latest on the coronavirus situation, the spike in cases across europe, the new restrictions, but also the numerous officials who are in quarantine or have tested positive, as in the case. Up next, exit before brexit. J. P. Morgan is moving 200 bankers and 200 billion euros out of london. The money is coming to frankfurt. The Financial Capital<\/a> of germany. Will it attract more city jobs . The managing director of the frankfurt main finance committee joins us next. We will talk more about that. This is bloomberg. Anna welcome back to the European Market<\/a> open. 20 minutes until the start of equity trade hearing europe. Doesnt look pretty. Point decidedly to the downside. We have to play catch up with the united states. U. S. Futures also negative this hour. Lets take a look at some of the stories we will be watching for today. In the aviation industry, leaders come together for a festival as the sector pays faces unprecedented challenges. 12 00 you take time, the Turkish Central Bank<\/a> will announce its latest policy decision. Its expected to hold its benchmark rate at 8. 25 , holding Interest Rate<\/a>s steady seems to have become a theme along Central Banks<\/a> recently. The u. K. Chancellor will give a statement on the economy this afternoon. In the united states, we hear from fed officials. After two days in front of the House Financial Services<\/a> committee, Jerome Powell<\/a> and Steven Mnuchin<\/a> face the Senate Banking<\/a> committee to give their quarterly cares act report. We will see if theres anything new left to say. We will focus on the fiscal. Heres laura wright. Laura two Police Officers<\/a> have been shot amid protests in louisville, kentucky. One of the officers is undergoing surgery. The violence was sparked by a grand jury decision not to file murder charges against Police Officers<\/a> involved in the Fatal Shooting<\/a> of breonna taylor. One officer faces a lesser charge of wanton endangerment for firing into neighboring apartments. Donald trump says the Supreme Court<\/a> will likely have to decide the outcome of the november election. He argues he needs to confirm a new justice to replace Ruth Bader Ginsburg<\/a> to break any type. Hes casting doubt on the validity of the election, reiterating his criticism of mailin voting. The u. K. Is considering its first vaccine study that would expose Healthy People<\/a> to the virus. The idea of a challenge trial has gained momentum recently. A growing number of volunteers have signed up. This type of study can speed up research but raises ethical questions about exposing people to eighth adel a fatal virus. California plans to ban new gasoline cars by 2035. Gavin newsom announced the state is battling historic wildfires. Californias existing strength in electric vehicles accounts for about half of the nations easy markets. Global news 24 hours a day, on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. This is bloomberg. This is bloomberg. Matt thanks very much. Your first word news. The issue of diversity in the financial industry was brought to the fore this week with it the controversy involving the wells fargo ceo. He said, the field had a limited pool of black talent. He has now apologized for that statement. Bloomberg equality summit, gemma wolf of Goldman Sachs<\/a> said theres a robust pipeline of diverse entrepreneurs looking for funding. They spoke with bloombergs romaine bostick. I think one of the dynamics thats really interesting that our team is talking about and that we are watching is whether the current environment and videoconferencing, zoom, skype, isnt truly an equalizer. Opportunities the and leading to more investing gaps . What i mean by that, we know theres a strong pipeline. Weve seen it. There are so many opportunities to invest in really strong Industry Leading Companies<\/a> across a variety of sectors and industries. In the current environment, im hearing from some entrepreneurs that videoconferencing is removing some barriers to get to that funding. They dont have to fly out every month. They dont have to worry about the cost and time of being away from the business. They also dont have to think through, do i need to go to drinks . How do i navigate this . On the other hand, we are seeing some saying its really hard to do business right now without meeting facetoface with the entrepreneur. We are observing this. I dont know what the answer is. I would love to hear from people on what they are seeing. Its important that we be aware of this so we can ask the white questions about whats really leading to the investing gap. Its not a pipeline problem. We do think that this network app is a contributor to the investing gap. Theres a nuance here on the pipeline question. As you move into the later stages of a company, there are fewer companies by founders of color. The bulk of our pipeline we have seen is earlier. This cuts to charlies points. You have to start younger. You have to build the base to try to get leaders five or 10 years from now who you believe can succeed you at wells fargo. For us, its about Funding Companies<\/a> early and helping them grow into bigger companies. You cant just expect Big Companies<\/a> to exist. Because of these structural limitations that have persisted for a while. The pipeline is rich but it is young. We have to accept it and help it grow up. Level, aree esoteric there enough examples for them to follow . When we start our careers, a lot of us look at someone who looks like us or sounds like us and we say, i can do that. I can do what they are doing. Do we have enough of those examples out there right now for black entrepreneurs to look to where they feel comfortable . Not only pursuing it but feeling like they can succeeded it. Examples matter. We call that lighthouse companies. We have a few we are investing in purely for the purpose of providing samples to younger companies. We have some more proven companies in the portfolio. Not because they cant raise money elsewhere but because we need examples for others in that community. The goal is to build a community that is honorable with each other, that can learn from each other, that can overcome together. With bloombergs remain bostick at the bloomberg equality summit. Up next, we bring you your stocks to watch including city world. Revenue down two thirds. This is bloomberg. Matt welcome back. This is the european open. We are 11 minutes away from the start of cash equity and trading. Europe plays a little catch up to the downside with the drops we saw in the u. S. Yesterday. J. P. Morgan is shifting about 200 billion euros in assets from the u. K. To frankfurt because of brexit. Thats under 10 of the banks total balance sheet. The move could make j. P. Morgan germanys sixth biggest lender. Could this be part of a broader trend . What will it mean for competition in the financial industry here in germany . We are joined by hubertus vaeth. Let me first ask you what you think about moves because of brexit. There are moves also because of covid. How much do you expect brexit to move the finances finance business from the city of london and into frankfurt . Hubertus what we expect is anywhere between 750 to 800 billion euro of banking efforts assets to be moved into frankfurt. We know around 300 billion has arrived already by now. We expect another 100 billion to come by the end of the year. Remaining 350 billion will depend a little bit on the final outcome of the negotiations. They are more or less earmarked for being moved, depending on the final outcome. Anna so this could be there could be more to come . Hubertus i think we are only halfway through. What do you think we will see in terms of bodies following those assets . Youve got 200 bankers. I know j. P. Morgan has given the option to leave the city and go to paris, madrid, amsterdam. Do you think frankfurt will be a winner in terms of attracting those bankers . Do we have the right infrastructure in place . Hubertus if you look at bodies, you have to takeover it into consideration. What weve seen by the end of last year, 1500 jobs moving. Not necessarily meaning bodies. They can be locally recruited. The ecosystem here is sufficiently sophisticated that for most of the jobs, you can recruit locally. Its not necessary to move bodies. We had expected by the beginning of the year, that throughout 2020, another 2000 jobs would follow. Obviously given covid, we have not seen that. There is a close relationship between assets and bodies. We see now that assets are moving in and bodies will very likely be delayed when moving in. Why is that the case . Regulators want to see bodies backing up the efforts. Anna do you expect these big u. S. Banks that move money to start going after domestic german business . To modi to what extent will that be part of the story . Hubertus thats a concern for local income. They will very likely go after german business and european business. The majority of those moving into frankfurt, built in frankfurt, [inaudible] we already have a highly competitive market. That would make it hypercompetitive. Your what are ecb,mplications for the for other regulators . Will they have to boost their forces . Will they have to push up their numbers as well . Hubertus the answer is a clear and strong yes. All i know is that they have done it already. They have already consulted. They have boosted capacity. Due to various delays in the brexit negotiations, some of the capacity has been [inaudible] i dont see a massive new capacity build up. I think regulators are fairly ready. Anna thank you very much. Thank you for joining us. Phenomenon asting we move towards the end of the year and the trade conversations around brexit continue. We are minutes away from the market open. Lets get your stocks to watch with dani burger. Earnings this morning, revenue of 712 million dollars. The real issue here is they are warning they may breach their covenant unless they get a waiver. If they do, it could trigger a restructuring of the company. That is deftly want to keep an eye on. The pain uncertain for cineworld as countries continue to add more restrictions. Base metals are one to watch today. We saw the bluebird base metal index clock its worst we can about five months. That pain is on the back of margin saying that they do see the pain getting worse for the metals industry. We could see Companies Like<\/a> slump during todays trading. Finally, more news on the spanish bank merger front. Discussing potential mergers. Senior management, shareholders all talking together. Thats according to spanish local reports. So far, they have not hired an invented inspector. Its not certain at this point yet. These two pinks held talks at the beginning of 2019. Those were called off. They sizzled out. It looks like a merger is potentially back on the table with the story of banks merging in spain picking up steam over the past month or so. Matt thanks very much. Dani burger there talking to us about the stocks to watch. Coming up, futures are pointing down. More than 1 . The multipercent losses that we saw in the u. S. Yesterday. Europe closed in the green for the most part as u. S. Stocks plunged. Now its time to play catch up. The market opens in five minutes. This is bloomberg. A minute to go until the start of cash equity trading in europe this thursday morning. Here are your headlines. Grim tidings. Powell andlump as mnuchin take the stage again today. Partial measures. France cracks down on gatherings and bars, but wont impose a full lockdown. Germans. Like the the u. K. Chancellor will set out a new crisis plan to protect jobs. One is for a government backed wage scheme for workers to return to work part time. Matt take a look at european futures. They are pretty deep in the red right now. Looking at drops of 1 , more than 1 on ftse and jack futures as europe dax futures as europe is expected to play catch up with the drops we saw in the u. S. Yesterday. Lets take a look at the live cash trade with the global macro movers screen. You will see columns of different assets. The far lefthand column shows you equity indexes as they start trading live. They will populate this column. The ftse straight out of the gate down 0. 6 percent. Typically, we see the ibex in madrid open up next. It takes a little bit longer typically for the continental indexes to open up. There you see the ibex down 1. 2 . The cac down 1. 2 , as well. It looks like European Market<\/a>s andopening down about 1 change right now as warnings from the Federal Reserve<\/a> on the need for more stimulus in america spooked investors yesterday. Of course, this is a different continent with many different countries, but still, we tend to follow along. Lets bring in simon french to discuss what is going on. He is a chief economist at panmayor gordon. U. S. First,on the as markets are want to do. Do you think the u. S. Needs more stimulus . Is that important as an engine for Global Growth<\/a> . Economic stimulus for the of states in the form [indiscernible] the lack of progress in capitol is problematic, but i think what we learned from the testimony from mnuchin and powell is that they certainly support a much more targeted suite of economic support of fiscal policy then was the case at the start of this crisis. I think that is the way things are evolving. We are learning which sectors cannot operate economically viably under social distancing and fiscal policy needs to be more targeted. Good morning to you. We have heard that many times, something politicians have pointed to, as well. Can i ask i ask how we go about practically . Decidewe practically which of the sectors do we decide need support . It is easy to say aviation and retail and anyone and hospitality, but there are limits, there are places where the sectors meet each other. How do we go about disentangling all of that . Is one of the reasons why it has been so difficult to get the second wave of policy stimulus through because actually, you find that we might neatly talk about sectors when we talk on air, but unfortunately the real world does not operate like that. Error inconcern about a way the sectorbased schemes have performed. You are right. The support is likely to come through for those sectors that have the most effective lobbyists for making the case white it is not viable under premarket economics at the moment and need be propped up fed. Fed had matt do we see better stimulus efforts here than we do in the u. S. . Is ithe central bank, going to be a big boost . Hopefully a little bit more on furlough schemes. Is that going to be a decent boost . Simon i think it is certainly the case that the longerterm support for businesses and households is more defined in the european area, although it is not clear to me that investors are entirely putting the weight on the social commentators. Financial investors are saying that is good news in terms of supporting the existing supply side and weve talked about this previously when i been on your show. There is a problem of transitioning to new patterns of demand. What i think has an advantage for the european model of supporting the existing supply side becomes an impediment when demand comes in. It is hard to say we are going to turn our back on industries that are uneconomic post covid and support transitions. I think that is a delicate balancing act on the content and in the u. K. A delicate balance has got to be struck. Anna we will get further thoughts about what to expect on the u. K. Side in a moment. On the more global picture, i was reading from the Australian Government<\/a> today every of they are setting out some fiscal plans and they were saying they dont plan to start rebuilding fiscal buffers until unemployment gets comfortably down below 6 . I thought this was an interesting strategy. You set out the shortterm firefighting strategy and you say we will move to longterm thinking once we have met certain metric. I wonder if that is something that could spread . Smiling because actually fiscal Forward Guidance<\/a> is something i wrote about at the very start of this crisis. Where we dont want to be in a uation is where households spending cuts or cutting imminently. Saving anticipating a crunch to come. We heard a lot on monetary Forward Guidance<\/a>, conditional Forward Guidance<\/a>. I think there is a compelling case at the moment for saying with the markets where they are, with the intellectual hook that was provided a decade ago to lean back on, fiscal policies are prepared to wait until the recovery is well entrenched before raising taxes and cutting spending. Very sensible. There isnt a Budget Constraint<\/a> right now and i think the australians are the vanguard right now and i would welcome that. Matt keep smiling, simon. We are going to keep you with us. Simon french sticks around. Downxt, france clamps while britain reduces some of the movement and also reaches for its checkbook. We will look at how europe is fighting rising virus cases and helping to prop up the economy. This is bloomberg. Back to thee European Market<\/a> open. 10 minutes into the european trading session. Things looking negative across European Equity<\/a> markets. France has announced new steps to fight covid19. Bars will close earlier and public gatherings will be limited to, but the government is not considering another nationwide lockdown. That comes as the u. K. Chancellor set out a new plan to protect jobs and rescue businesses. Simon french still with us. We tapped in a little to your thoughts to expect from richey soon act later today sunak later today. What will the gist of it be . The at theis height of the pandemic, the million u. K. Ing 9 workers in the form of pension schemes. We think that has come down to to 3 million. The problem with the announcement of a tightening of restrictions is not so much the direct Economic Impact<\/a>, but the indirect Economic Impact<\/a> on confidence, consumer spending, business investment. What needs to be done in the u. K. Today is recognize that there are some sectors in space,lity, leisure there are also parts of the unable toat will be operate profitably, economically under social distancing. He needs to recognize that in the absence of a vaccine, the state needs to continue to subsidize those sectors, particularly if they think there is a viable Economic Future<\/a> for those businesses after the pandemic has passed. Concernat about the around Zombie Companies<\/a> . Is the u. K. Going to go too far . Is it ok if the pendulum swings too far for now . Simon look come of zombie , the view that effectively you delay the rebalancing supply to deal with new demand is certainly something to concern yourself in more stable economic times. If you think about the last decade, Zombie Companies<\/a> was not a reason not to act in 2008, 2009, 2010, but it probably should have been further up the agenda as economies recovered in the middle part of our decade. Not want toou do turn your back on productive capacity that might be required when a vaccine if a vaccine comes along because it is going to be far more costly for your economy and population if you have companies that need to be recreated subsequently. Anna we are just getting breaking lines from the times in london saying that their understanding that rishi sunak has ruled out making the wage scheme sector specific. If he does not go down a sector specific route, if he goes down a different route, which could be reduced support for all areas of the economy, what should he be mindful of their . Simon one word. Particularly pithy one, but conditionality. That he needs to avoid the ever we spoke about before the break. He needs to make it conditional on something, that either when people are not working, if people are not at work but they are being paid by the state, are they taking part in training . Are they doing voluntary work . Is there some sort of activity . This is what might be necessary. To be fair if that line is correct, he said that throughout the summer that the treasury is concerned that targeting specific sectors is very hard to do for just the reason you mentioned before the break. We dont fit neatly into categorization. We talk about sectors. The real world does not operate like that. Matt does it make sense to be more like the germans or do you think that the germans got lucky in a lot of ways . Simon no, i think there is a lot to like about that model. It worked well and you can see that very clearly in the data. We worked with a number of German Companies<\/a> without the economy involved, gave them the flexibility into thousand eight in 2008 and 2009. Operationally, it is going to be the challenge. Intellectually, i dont think there is much of a debate to be had, but as we found through the crisis, the best policies are those that can be operationalized quickly. It is all very well coming up with an elegant, sophisticated model, but if it does not survive contact with reality, it cannot be delivered. It is no use. Anna i wonder in the end if we might get a number of projects coming through from the treasury. That is also possible, isnt it . We will have to wait and see. Thank you for your time. Simon french. Be continuing his conversation with us on Bloomberg Radio<\/a> at 9 00 a. M. U. K. Time. Lets get a Bloomberg Business<\/a> with laura wright. Jp morgan plans to being bring more workers back to its londonbased. While some lenders have encouraged people to work from home, jp morgan said its Business Unit<\/a> will decide who is needed in the office and who isnt. Raise 17. 5king to billion in a hong kong share sale. It wont seek to lock in any cornerstone investors, confident there will be plenty of demand for one of the largest equity deals in the city. The big investors for a shanghai sale to mitigate. 1. 3 billion dollars australian dollars to settle the nations biggest monetary laundering laws. It is the largest fine levied against an Australian Company<\/a> than the money put aside for the penalty. That is your Bloomberg Business<\/a> flash. Matt thank you, laura. Jerome powell is pleading for more stimulus while highlighting the long road to economic recovery. During a second day testifying before a house panel, he pushed back against suggestions that the fed favored markets over people during the pandemic. In an exclusive interview, Federal Reserve<\/a> chairman vice chair Richard Clarida<\/a> agreed with his boss. What we are saying quite simply is that perhaps in a normal recession or perhaps if we were back in february when obviously getting to 2 would be within our forecast horizon, but because of the depth of the shock, the economy has to recover. As i said in our baseline, that recovery relative to the last downturn will occur within about three, threeyears, but until we get to that point, overshooting is just an academic and we want to get to the economy within 2 of maximum inflation and we think along with fiscal support that that can happen. Fund manager after fund manager has come in the show and said we are at risk of creating an asset rice bubble. How does that factor into your calculus about when to tighten the lessee . Tighten . That is an important consideration. We get regular briefings on financial. We are very attentive and attuned to that risk, but it is important to remember that we have a dual mandate assigned from congress, which is maximum employment and price stability. If hypothetically we were to become concerned that Financial Stability<\/a> put our maximum employment and price stability goals at risk, we would have to factor that in, but we believe Monetary Policy<\/a> raising or lowering rates is a pretty blunt instrument and our inclination and preference is to work with other agencies in regulation supervision, bank liquidity, and other dimensions than simply raising or lowering rates to deal with Financial Stability<\/a>. Another way of asking this is how effective can the fed be without more fiscal support, without another round in washington dc that injects direct aid to companies or individuals . Indicated, powell fiscal policy is with the congress and the executive branch. We do think additional fiscal support will likely be needed. It is very clear that the cares march was aassed in really historic government response to an historic crisis. A 3 trillion package provided significant support to the economy. The economy has made a lot of progress. About 11 million jobs have returned, but we still have a very high rate of in in mint. We have small and mediumsized businesses that are suffering, so additional fiscal support will likely be needed. Anna that was the fed vice chairman Richard Clarida<\/a> sounding the alarm on the need for fiscal support. Coming up, we have been discussing this already and we will get further discussion. Germanong has the recovery been . We discussed next. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. 22 minutes into the session. Looking at a 1 drop in london on the ftse. 0. 6 . C down the cac down 0. 8 . We are playing catchup with the u. S. s big drops yesterday. Germanys ecosurvey is due out in the next hour, ticked bit typically one of the best indicators of the regions economic growth. At the same time, the u. K. Rishi sunak is looking at aid that would include a german style subsidy program. Joining us to discuss the copycat mentality is dani burger. We have had a decent recovery here in germany, stronger than other European Countries<\/a>, right . Dani yes, one of the things that i really like to look at are some of the higher frequency data. Just because a lot of the surveys and figures can be very backwards looking, but this gives us a more uptodate measure. From what we can see, the Consumer Behavior<\/a> has in large part returned to normal. This blue lines restaurant bookings on open table. That is back to previrus levels. The purple one, that is truck mileage, some more commerce moving around. Then we have footfall in the yellow, as well as Public Transportation<\/a> use and those are both moving higher and i should say much stronger than what we are seeing in the u. K. Part of that is of course helped by the help in the German Economy<\/a> including stimulus. An oxford stringency index. Basically the higher it is, the more strict restrictions are to protect the public. So, i have germany in the white versus the u. K. In yellow and france in blue. One of the things you can see with germany is it steps in a bit later than the European Countries<\/a> when it comes to measures and then those measures are less strict than other countries. It is about even with france though the index does move on a lag, so we are likely to see france jump up with the latest restrictions. This also helps restore Consumer Behavior<\/a> back to what it was because it does not have to take too much of a hit. Anna really interesting, but we are talking a lot about the german labor market. We shouldnt be under any illusions that germany has not suffered from job losses as a result of this crisis. Dani that is absolutely right. You can see the jobless rate really pick up in germany. Because of the Stimulus Program<\/a> which helps pay for part of furloughed workers wages, this might fill some of the slack in the labor market, as well. We have heard Companies Based<\/a> in germany announced increasing job cuts. That includes bnsf. We get these cuts and yesterday we heard from daimler, announcing about 4000 planned job cuts, so the pain in the labor market is certainly still there, something im sure the u. K. Is keeping in mind as they examine some of these germantype aid programs. Matt yes, definitely watching those, especially the automotive layoff really starting to take off in germany. Coming up, we are going to speak are going to speak to the head of the emea banking at citigroup. This is bloomberg. Anna welcome back to the European Market<\/a> open. 30 minutes into the trading session. Equity markets on the back foot, as we were in the u. S. Yesterday. Down by one point 1 on the stoxx 600. A concern about u. S. Fiscal stimulus. U. S. Futures also moving to the downside by 0. 4 to 0. 5 . Ryanair is trading weaker. Retail is also to the downside. Grr function on the bloomberg. We have retailers of all stripes. Anything exposed to the coronavirus is under pressure in todays session. Nothing to the upside. No sectors moving to the upside. Just one right at the top. Lets get to some breaking news. Matt yes, even real estate not really moving around that much. On yourype snb go bloomberg terminal, you will be taken to our homepage for the Swiss National<\/a> bank. You will see that they have maintained their policy rate at 75 basis points, as had been expected. The snb also putting out some forecasts for 2020. Snb sees gdp contracting by about 5 this year. Andnecessarily surprising neither is the move or lack thereof to hold rates at 75 basis points. Nonetheless interesting. Lets get the bloomberg first word news. Bytedance is asking a federal judge to stop donald trump as beijing is threatening to cut off the deal over what state media is calling dirty tactics. President donald trump says the Supreme Court<\/a> would likely have to decide the outcome of the november election. He is arguing he needs to confirm a new justice to confirm the late Ruth Bader Ginsburg<\/a> to break any time. He reiterated his criticism of mailin voting. France is cracking down on bars and gyms to stop the spread of the coronavirus. It is limiting public gatherings in paris and several other cities, but the government is not planning a nationwide lockdown. The marseilles area is one of the worst affected areas and all restaurants and bars will be shut. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Anna thank you. Prepared a fresh round of jobs and business support. The u. K. Chancellor is studying german style measures. He is expected to give an update on his plan later on today. Lets talk to the brexit editor. Good to speak to you. He will announce a nonsector wage specific support scheme. What are we expecting him to say . I wonder if there might be more than one measure. We just dont know at this point. We dont know at this point. They have been suggesting it will actually be targeted board. The virus has forced his hand. Short shock to the economy that they envisioned back in march. They were talking about getting the virus under control within three months. Supportough scheme programs were designed for that situation. That is fine, if we are still going through this virus after it is very expensive and the need to find a replacement. Thee why they talk about furlough. See someexpect to extensions to the business led program again. Going to have to run further. It is very much in crisis mode. Matt what is the base of the conservative party really think about these debt fueled Spending Plans<\/a> . Short answer i think they toognize there is a threat the economy here. Hes one of the few with a that says it is still very high because he has been able to spend money quickly at this point. None of them have been perfect. In general, they have been pretty supportive. I think it gets much more interesting in the longerterm if this crisis goes on. Talking about the virus being here another six months. If it goes on longer than that, thesustainable is it . Increase of the national debt. There will most likely be a snapback toward a balanced budget and toward very difficult decisions about taxes and spending, which areas will have to be cut. Anna just weeks ago less than weeks actually, we were looking at the falling out within the conservative party between them and the europeans around how brexit negotiations progressed. What has happened with that . There was one vote and moved on another stage. Is it now on the back burner . Slightly. It is going to go through the lords in a moment. That is when you are going to rebellion, threatening to rebel on this. Block the bill, but it can certainly delay it. They can draw or amend the bill for the eu is threatening legal action. Difficulte a slow and process. , we are not eu going to get the trade deal as long as this is outstanding. It is slowly coming to a head next month, where you will see the compromise between the two for there is no bill. Matt thanks very much. Edward evans there talking to us about this developing story that we will continue to follow for you. Up next, j. P. Morgan is set to shell out up to 1 billion in the biggest spoofing penalty ever. This is bloomberg. Welcome back to bloomberg markets, this is the european open 40 minutes into the session. We are looking at a drop in stocks. It has to be said, not nearly as significant as the slump we saw yesterday in the u. S. U. S. Stocks yesterday fell 2 or more. We are looking at less than 1 drops here. So, with that said, lets move on to one of the big stories. Jp morgan set to cough up almost 1 billion in the biggest spoofing penalty of all time. It would end several probes into treasury and middlemarket manipulation. Bloomberg has learned that the final amount could be announced this week. Our finance editor tom metcalf joins us for more. Tom, lets talk first of all about where this fine ranks in terms of other fines, and terms of other spoofing issues. Fines, terms of spoofing it is absolutely a norm us. The biggest was applied to the bank of nova scotia for about 125 million. Whichher was citigroup, was 25 million. It is an absolutely enormous figure. Because of the fact that it is 10 times as big as the previous record goes to show how sweeping and serious the investigation was. Anna i know you have some thoughts on whether it is a good or better result for jp morgan. I guess given what you said, it is bad if it is that big compared to history. What are your thoughts . Tom it is definitely larger than expected. That is the feedback from analysts. Cut to therive to expected income in the next quarter. The share price yesterday when bloomberg broke this news, it dipped, but about 1 , 2 . Morgan, biggest bank in the u. S. , can easily absorb even a fine of 1 billion. I suspect the thing to do was watch what they do in early trading and we will get a good sense of how shareholders fall on the issue. Happening to the in what was alved fairly Common Market<\/a> practice . Fairly widespread and something that market watchers are trying to clamp down on. An enormous fine and that will seem to invest and the investigations. When you look at the individual employees involved, last year, they had criminal charges against them, including the former head the Precious Metals<\/a> desk at jp. The Justice Department<\/a> was using racketeering laws to sort of bring these charges. So, it is an interesting disconnect between the employees directly are facing and the firm itself. It should be noted that the employees have all pleaded not guilty. That case is still proceeding. It seems like jp on the firm is on the way to getting that result. Anna how widespread is spoofing in this market or others . Does this suggest there will be further fines . Tom there has been lots of cases over the years with all sorts of market players. You had highfrequency trading shops being charged. Big banks, jp morgan, bank of america, deutsche bank. A day trader, implicated in the flash crash. It is one of those issues that is a hot topic for regulators. As this fine shows, it is likely to remain the case for a while. Anna remember it well. Thanks, tom. Finance editor tom metcalf. Lets get the Bloomberg Business<\/a> flash. Laura jack ma is looking to raise 17. 5 billion in the ant hong kong share sale. It is confident there will be plenty of demand for one of the largest equity deals in the city. Westpac has paid a record fine of 1. 3 billion australian dollars to settle the biggest breach of Money Laundering<\/a> laws in the nation. It shredded the banks reputation and cost the former chief executive his job. Plans to ban gasoline powered cars by 2035 as part of the fight against climate change. Governor gavin newsom announced this comes as the state is battling historic wildfires. That is your Bloomberg Business<\/a> flash. Matt, anna. Matt laura, thanks very much. The business flash out of london. Allison rose spoke to Francine Lacqua<\/a> about setting targets, encouraging women into banking, and creating a more diverse and inclusive culture. She adds that this isnt a nice to do, and absolute business imperative. The bloomberg equality summit virtual event. We are very clear that we set targets. If you dont measure it, it doesnt get done. So, we have a very broad program around helping encourage women coming into banking, encouraging girls to think about banking. Intoe a program that goes schools and encourages girls to think about finance as a career, thing about entrepreneurship as a career, to work on resilience and encourage people into the pipeline. We have targets at our top four levels. Team now is over 30 female and we have targets to encourage all elements of inclusivity. All of my team is encouraged to pray said and broader elements of inclusivity. I think you set targets, you put interventions in place, and you create a culture that will hopefully encourage people and allow that talent to thrive. [indiscernible] visit a cultural thing is it a cultural thing . Is it seen as too aggressive . I think historically the Financial Sector<\/a> has been very maledominated. When i started my career, i was the only woman in the room. Part of for a long time the environment i operated in. So, i think it starts with having a perception of being like that, but the culture of banking has changed a norm asleep. We need to do a better job of explaining the fact that you can have 1000 different careers in an organization and what an exciting environment it is and then create the culture that people can really be their whole selves when they come here. We are increasingly seeing more women come into banking. Now we need to get more women into executive positions so they really can make a difference with a really diverse workforce. I know certainly being a part of diverse teams is fantastic. You get different perspectives, different creativity, which makes you more competitive. Making sure we can really articulate the attraction of the industry i think will encourage more women to join. Do you ever get pushed back with some of these initiatives . With things you are trying to do and change . No, i think a lot of what i diverse i have driven debates and the cultural change is help from people. Why am i not attracting more women . How do we address this . A lot of it is unconscious bias. You have to look at talent in a very different way rather than through the lens in which you would typically look at it. So, generally i dont get pushback, i get an ask of how can i get the best talent, how can i get help . I think explaining the business case, explaining the imperative. This is not a nice to do, this is an absolute business imperative. It is asking for help, for intervention. Rose, the was allison ceo of the net west group, speaking at the bloomberg equality summit. Up next, which assets are the best for deleveraging . This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. We are 52 minutes into the session. We are looking at losses, but they are not more than 1 . The per ling only 1. 3 0. 3 . Lets get into the markets with our mliv editor. This is a risk obsession because we are coming from the u. S. Where the slump was again 1 or 2 . Here in europe we are not doing quite as poorly. What is the difference . I mean, you are definitely seeing some catch up in europe. That seems to kind of be the story. The selloff. That is the big thing. We are seeing a big selloff and travel shares, and leisure shares, amid fresh restrictions coming across europe. Lockdown lite. While some of the early declines have paired, it is definitely more of the global risk off fears that europe has capitulated to. The u. K. sabout story . We are waiting to hear from the chancellor later about how he plans to move on from the furlough scheme. That is going, but something might be taking its place, we understand. How is the Market Positioning<\/a> into that . Well matt oh it was one of those notorious phone calls. Just get phones disconnected all the time. Anna we dont have much luck with these phone calls. Matt we dont have much luck with technology. Anna maybe move everybody to video. European equity markets on the back foot. You were making the point about the transatlantic catch up. It is worth noting that u. S. Futures have been improving over the last halfhour or so. U. S. Futures now down between 0. 1 and 0. 3 , sinnott the scale of the losses we were seeing earlier on. About the the program mood being risk off at the dollar catching a bid. But the dollar is pretty flat now even though that has been an expression of nervousness, a place of haven that investors have fled to at the times when we have seen panic, in march and at the beginning of this week. Matt i think you have seen a Real Recovery<\/a> in assets. We still have red arrows across European Equity<\/a> indexes, but remember we were down 1. 5 at the beginning of this session and now we are back up to losses on the dax. Only 0. 25 . Only 29 points off on the dax, which is a 12,613. In the u. S. , it was worse before the close and then u. S. Equity indexes closed down about 2 . Yesterday, the dow doing a little bit better, but not much. Now in the u. S. , you are seeing futures that are really little changed. On dow and s p futures. It may not be such a risk on session on wall street after all. Anna we are looking ahead to this news from rishi sunak, the chancellor of the u. K. The pound fairly choppy as we wait for news around jobs. Waiting for news from westminster essentially, from the chancellor for what he plans to replace the furlough scheme with at the end of october. This is bloomberg. Francine good tidings. Markets slump. Thell and mnuchin take stage again today. President trump refused to commit to a peaceful transfer of power, the election is 40 days away. Rishi sunak says a plan is coming. The chancellor will set out a new crisis plan to protect jobs today. Measures could include","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia801704.us.archive.org\/19\/items\/BLOOMBERG_20200924_060000_Bloomberg_Markets_European_Open\/BLOOMBERG_20200924_060000_Bloomberg_Markets_European_Open.thumbs\/BLOOMBERG_20200924_060000_Bloomberg_Markets_European_Open_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}

© 2025 Vimarsana