Europe here. We initially saw quite a negative story coming out of europe. In the United States, maybe some stimulus talks helping propel the story a bit higher. The s p up by over 1 . The euro has come back. It is still negative on the day. We did have a 1. 16 handle. We now have a 1. 17 handle, but we have seen continuing dismal inflation data out of the eurozone. Yesterday was germany. Today it is france. A 0. 6 print. We get the final number friday. Alix totally different from the u. S. , in that we are able to generate some inflation. Christine lagarde with her strongest signal that the ecb will change its goal. She said it may be worth examining a strategy that allows inflation to temporarily rise above the target rate, similar to the feds shift. We need to thoroughly analyze the forces driving inflation dynamics today, and consider whether and how we should adjust our strategy in response. The anchoring of fixed rate expectations might have loosened. The wider discussion today is whether Central Banks should commit to explicitly make up for inflation when they have spent quite some time below the inflation goals. It is not about moving the goal posts for monetary policy. The usefulness of such an approach could be examined. Alix joining us from london is chris watling, longview economics ceo and chief market strategist. And on the phone from brantford is Volker Wieland of the institute for monetary stability frankfurt is Volker Wieland of the institute for monetary stability. Is there a first mover advantage . Who is going to win in that playoff . Er basically, we had this conference today. This is a conference which was reaching out to academics, two former central bankers, to researchers to discuss the strategy review, and in my view, all that president lagarde said is that everything is on the table and being examined, so it is only natural to also examine the proposal of what the fed is doing now. The socalled average inflation targeting. But if you listen to the various assessments at the conference, it got mostly bad reviews. There was a lot of criticism that the feds approach is unclear and that it may actually, if anything, increase inflation volatility or d anchor expectations or deanchor expectations. That ity, my reading is will not lead to the ecb picking this up. Guy what do you make of the chances of the ecb, regardless of the policy changes that it makes, being able to lift inflation to potentially above average . We had a print out of france today, 0. 6 . There is a concern now that Inflation Expectations in the euro zone are getting anchored at very low levels. They were anchored around 1 for a while. Now it seems we are getting anchored potentially below 1 . [indiscernible] chris excuse me, sorry. I would say it is a great question. Is clear there is a divergent trend. The most obvious force behind that is probably fairly obvious. One, the demographic profiles are very differents of the aging in the euro zone versus the u. S. , where youve got a much younger population on average. Got baby boomers, youve got a b boomers that shes got baby boomers youve got baby boomers, and a lot more millennials. Theres a much bigger thing in america that is less prevalent in places like italy and not very prevalent in germany. So you get the consumption impulse from lowering interest rates, and therefore harder to get inflation up. I think these factors are making it very tough, whatever the ecb does. Im amazed that these Central Banks are still regarded as credible, having missed these targets for 10 years pretty much across the board, and the ecb is on of the ones that has missed it the hardest. Alix that is a pretty good point. Volker, why should the ecb maintain that when it comes to targeting . Measureon the inflation , everyone is talking about Consumer Price inflation. Consumer Price Inflation is also driven importantly by imports. That is a different effect here in europe than in the u. S. Because we import oil and other energy. We really benefit in terms of consumption from the reduction in the oil price and other energy prices. That is what is pushing down Consumer Price inflation. But a little known secret is that the broad inflation in europe, which you measure with a gdp deflator, which basically includes investment goods and public goods, all of the government expenditure, all of these areas, we had a reading of 2. 4 inator increase of the second quarter. So we actually get diverging inflation measures, and that is getting too little attention in the ecb strategy. I think it would benefit from looking at broader measures of inflation, and not only Consumer Prices. Guy a couple of things which i want to pick up on. First and foremost, the ecb mandate doesnt include that. Knowledge, it doesnt include that. You think we need to change the way that we target inflation, or the in place and we target here in the euro zone . Second, do you think the ecb is therefore going to have to step up when you talk about the inflation related to imports and be much firmer about what happens with a stronger euro . Can you talk me through those two things . Volker first of all, no. The mandate is not tied to a particular measure of inflation. The mandate is laid down in the treaties. It is part of the strategic choices of the ecb, what measure they choose and at what horizon they target. That sign that they can focus on the measures they have, there is some fine tuning one has to do. For example, the Consumer Prices would probably not it up another probably notch it up another few basis points, or 10 to 20 basis points. We will see. But when you about policy transmission, what are they actually affecting . If the ecb is buying extensively corporate debt of companies such as siemens, it lowers the financing cost of those companies, so it has an effect on their output, and eventually goes through inflation. But what do the companies produce . Investment goods. So of course, you have to look at broader measures such as gdp deflator, which includes those goods. You have to look at it when you want to know the effect of policy and how quickly it is taking effect. In that account, the measures they have taken in the last few years in terms of asset purchases look better than if you are more effective look better and are more effective than if you focus on Consumer Price inflation, which is on imported goods, therefore not directly affected by ecb policy. Alix lets get to the fiscal policy. That European Recovery Fund now seems a little bit dicier. Angela merkel spoke earlier on that. Still got to get over some hurdles that are now in negotiations with the parliament. Along with the purely financial questions, theres also the issue of the rule of law in connection with financing. I am not going to go into detail, but i will say that we have difficult negotiations ahead of us. Anyone who is bullish of european equities says it is because of the European Recovery Fund. If there is a delay, what happens to that thesis . Chris thats a good question. To be fair, that part of the story is the european cover refund, but it is really a global story. We hear some challenges to the european Stimulus Fund. Clearly, and a sense they are setting each other off. Clearly they need the Stimulus Fund to support its growth, and i suppose if you dont have it, you could argue that the euro would strengthen because theres less looseness to policy and europe. Youre struggling more and putting more deflationary headwinds, and not even getting that boost back as well. I think this is classic referring thats classic european negotiation in parliament. Classic european negotiation in parliament. Theres clearly some challenges on some of the financing, but i am pretty sure europe will get over this hurdle. I would not have thought of this as a meaningful problem for the European Equity market, really. Rallying,markets are and europe gets caught up in that to an extent, too. Yf course, europe is heav encyclicals, like in the u. K. Majorityill need the of e. U. Membership back it. Polandre, hungary and wont necessarily be able to resist it. We do need this package to be improved on a nation by nation basis, so potentially there could be some risk. Volker, let me talk to you a little bit about that. The fiscal side is absolutely critical for europe. If the fiscal side were to stumble, where would that leave the continents recovery . Volker yes, the fiscal side is crucial. We have huge packages already in terms of giving support to the economy, and also additional stimulus packages in germany, now in france. S a lotional government of ready are already doing a lot. They have no problem funding themselves at the moment because the ecb is massively buying out government debt. So in that sense, right now the governments have no funding problem. If you look at the cost of government funding, they are low across the board. So in a sense, i dont understand the Recovery Fund as a stimulus package. It is really a growth and innovation package. A key element is that it is to a significant part of transfers, so it doesnt automatically increase the debt of the high debt countries. But if you get a gift, if you get a transfer, people want to know how you use it, and then use it wisely, so this comes with Strings Attached to be used greeningation, health, of the economy. So it will be a process. I agree that there are hurdles. Political negotiations. We will get over them, and then this will be a program hopefully putting growth on track in certain key areas. In terms of if the governments run into financing trouble in the nearterm, if the ecb were to have to stop buying so much government debt, there is still the ease and the esm. There are still unused credit lines. In that sense, governments could sustain their deficits also in that way. Governmentsf resistant to maybe taking esm financing for a long list of reasons. We will leave it there. Chris watling and Volker Wieland, thank you very much, indeed. Coming up, pelletier making its coming up, palantir making its debut through delectable sing they view through direct listing. President eak to nyse Stacey Cunningham. Stacey cunningham. Guy 16 minutes past the hour. This is the european close on bloomberg markets. Majorors are watching two wall street debuts today, peter going publictir through direct listing. Misc president nyse president Stacey Cunningham is with us. How confident are you that this will go off without a hitch . Stacey we are excited about today. We are ready, locked and loaded, and it is going to be a great day. Alix far palantir specifically, its gotten all of the buzz, but there has also been criticism as to the governance of it and how much peter thiel is in control of the stock and voting rights. How do you see that debate playing out as more Companies May opt for direct listings and try to keep more control . Stacey i think what you are going to see across the choices is this isnt were placing ipo, but companies are going to be able to choose, do they want to go public through traditional ipo, where they have the infrastructure in place that goes along with that and some control over their initial shareholders, or direct listing, which reduces their cost of capital . Where i think the next evolution you are going to continue to see is what elements of each of these do others start to adopt. Palantir is introducing lockups and dual class structures. We have seen ipos start to refine some of the lockup mechanisms that were traditionally there. Start toeen spacs evolve their models. The important point is it is not onesizefitsall. Not all companies are created equal. We are going to support them at the New York Stock Exchange in whatever path makes most sense for them and their investors. Guy lets talk about that. Are we starting to reach the limit of what is acceptable governance . The three founders of palantir are basically going to be able to retain control of this business, almost carless of how much they own. Until they die. I am wondering whether Public Markets are going to be undermined if we see a continuation of this trend in governance. Stacey it is really important for investors to choose and reward what they want to see. If Companies Choose to stay private because they feel forced to give up control when they go tolic, investors lose access those companies in the private markets. We believe strongly in the fact that this nation has been built on the story of shared success, as companies grow. If we dont allow the everyday investor to share in that success by having access to those investment opportunities, i worry that we are really going to redefine the fabric of this nation. So it is important that they are public of any so that people could to share in that success, but investors should reward the behavior they want to see, and they should do that i investing in government structures they believe in in governance structures they believe in. Alix do you think that investors will be able to understand the distention of all of that and know that they dont have control over these . Stacey using about a company like salesforce, who went public in 2014 and has returned 5600 since then, those companies are staying private much longer. Many times, because they are concerned about the undue pressure as a Public Company on shortterm thinking around quarterly earnings. Some of them are adopting governance structures that allow them to maintain control as a Public Company. If we dont support that mechanism, my concern is the pendulum will stay where it was in the private markets. 2020 really showed the strength of the Capital Markets, and the fact that companies under pressure because of the pandemic could easily raise money. Billionraised over 130 through ipos and followup offerings. We want to see that swing back. Guy absolutely, but there need to be checks and balances. The individual investor is less sophisticated in Public Markets than they generally are in private markets. They dont have the analysis that exists in private markets. There need to be checks and balances. If i am investing in a company where i dont have control, and , theyunders keep control are not taking the economic risk in the way that they once were. How is that correct . Why shouldnt there be greater checks and balances in the Public Markets than there are in private markets . Stacey we balance investor protections and investor access. That is how we give investors the tools and the information they need to make an informed decision. But they need access to those opportunities. Denying access is not the right answer. Want to empower them with information so they can choose what is right for them, and investors should vote with their money. Alix one more question on this particular point. Do you feel like there are a lot of companies in the pipeline like palantir that have stayed private a lot longer, and will move on to the Public Market and may a lower valuation to bring up this conversation . Stacey september has been the busiest month at the New York Stock Exchange for ipos in our history, and october is on track to look exactly the same. I think that is reflective of the fact that companies have been private for a really long time, and took for granted that they would always be able to raise capital in the private markets. This year has been challenging. It changed the dynamic around the cost of capital in private markets versus Public Markets. We are seeing a lot of Companies Looking to tap into the Public Markets. They are uncertain about what the future might bring based on the pandemic, based on economic conditions. So we are seeing more Companies Come to public, and that is not a trend we see slowing down. Guy are you 100 confident that you could justify the fees that you charge for data . Stacey the dynamics around data fees have certainly been an involving an evolving trend in the equity market. It is important to recognize first that all of our fees are filed with the sec. Competition has led to a dramatic reduction in transaction fees, but an increase in fixed costs on brokers and those connecting to the exchange. The cost to trade is less than it used to be, but the Retail Investor is undeniably the benefit or of that trend. Alix how do you see that playing out with the doj . You have a lot more exchanges coming to markets, a lot more competition in part because of the data fees. If the doj is successful in its push with antitrust, you will get a pushback. Stacey this is a very competitive landscape. We operate five different equity markets. Our customers do not take all of our data fees for all of the markets. They take the ones that fit for them. That is a choice. It is a competitive marketplace. That is why we have seen how that evolves, so new exchanges will have that same hurdle as to whether or not they are providing value to their customers, that they want to be able to go about it subscribed to their fees. It is a very competitive marketplace, much like the evolution of content generally. As i look at my buying trends across netflix or hulu or alley or hbo, we are making different decisions about what we value. Guy interesting comparison. Do you expect the cost of data to come down . Stacey i expected to be driven by i expect it to be driven by our Competitive Forces as it has been to date. I reemphasize, not everybody buys every product. Alix are you concerned about more exchanges coming to market . Stacey we have been in this business for a long time. Certainly we have seen this before, where exchanges, brokers might come together and launch a new exchange. It is not something that is unu