Brussels summit in after concerns grow. Leaders are there to discuss china and belarus. The Fourth Quarter starts with a after its worst ever outage. It says a hardware breakdown is to blame. Good morning, everybody. Some breaking news coming through at the 7 00 hour. Lets go to the closing space and h m. We had these numbers in the middle of september. Pretax profit numbers from the business. Further detail here. 48. 9 . Liquidity remains good according to the Closing Company and they say september sales decreased by 5 in local currency. Many stores have local restrictions limiting opening hours. They currently have 166 stores that are still closed. Given the global stretch of the business, perhaps that is something of an achievement. That is the latest from h m. Get to rollsroyce. We have some breaking news coming through. Proposing a recapitalization to start with a bond offering. One billion pounds bond offering. Be 200 pounds. Ll proceeds. Raise growth they are getting support from the u. K. Export finance guarantee. That is some government support. S is a fully underwritten that is the 2 Million Pounds right issue they are talking about in terms of the underlying shareholder base. The u. K. Is to back a potential loan increase of up to one billion down. Are also giving us some impact. The largest impact. This is widely trailed that they were going to be raising money. From other pounds sources. There had been talk of getting sovereign wealth funds according to people familiar with the matter called off because existing shareholders did not want their holdings deluded. To give you a sense that headaches this business is facing, stop down by more than 80 year to date as the pandemic hit sales and also maintenance revenue. That is the story at rollsroyce. Lets get to the Broader Market picture. Equity markets in fairly fine form today. When it comes to European Equity futures, we moved to the upside. U. S. Equity futures also point to the upside. We dont have real concrete progress in u. S. Stimulus, but they are talking and they will continue to talk for the next day. Stephen mnuchin, treasury secretary, set a lot of progress has been made. Lets look at where we are across the Asian Session and in some currency markets, as well. We have the Asian Session dominated by what has been going on or not going on. Stimulus talking lifts global risk sentiment just a bit. We also have the yuan moving higher. There is a holiday in china. Broadly, we are fairly risk on, it seems. Lets get into a conversation with laura cooper, our macro strategist. It seems there is some anticipation with progress around stimulus even though there is absolutely no deal as yet. Laura you said it quite well. Markets do seem to be getting ahead of themselves. The fact that we are still seeing these negotiations ongoing, the fact that we are , markets arefines grasping onto that and that really is underpinning this risk on mood we saw late in yesterdays session and that is touching futures today. I think really going forward, the market narrative could potentially be tested. We do have payroll numbers coming out tomorrow and initial claims today that are likely to show fragile labor market recovery, just the fact that we are seeing exceptional layoffs coming across from companies. That could begin to put more focus on the fact that we dont have this fiscal stimulus and how much it is needed and markets could begin to reprice what is currently expected from those assumptions . The stimulus conversation is not just around the u. S. , isnt it . We doubt the Recovery Fund with a done deal and the big picture had been agreed, but now it is about the details. These details perhaps throwing up reason to be cautious and that there could be delays on the horizon, trying to link the rule of law with distributing funds seems to be a sticking point. Investors might be nervous from the european point as well. Laura absolutely. I think it was quite surprising we didnt see more of a downbeat price action when we saw these headlines come across yesterday from germany on reports that we could the and increase in delay in terms of actually getting the funding over the finish line every of but i guess it is really going to be the case that disputes of this kind are expected, particularly this time around when we have this joint debt issuance that needs unanimous agreement across all the countries. We still do have the frugal four holding out on some components. Some say it is too lenient. Some say they dont want to actually follow this rule of law proposal. Ultimately, i do think they are not going to meet their january 1 target. Germany has alluded to that. From a market perspective, the stimulus is largely baked in. Obviously, the upside of euro sentiment is going to be capped. This comes at a time when we are seeing the resurgence in virus cases and the emergence of a two speed recovery across europe with Services Sector starting to tumble and that really will weigh on the Growth Outlook that has largely been this positive narrative supporting both european equities and the euro. Let me ask you a little bit about the Asian Session. Im sure you have been getting up to speed on what is going on in tokyo or what hasnt been because trading canceled there. A hardware issue. This is really unusual, isnt it . It is and it is really the worst kind of shutdown we have ever seen. It is quite significant, the fact that japanese stocks of the Third Largest in the world and the daily turnover is about 22 billion. Now i think really what this tells us is that it could impede on investor confidence. Markets were already on heightened alert after we saw some shutdowns in new zealand back in august. That was more about cyberattacks, so the fact that we are seeing just a hardware break down may temper the fears somewhat, but it certainly does point to increased volatility when the markets do open and the fact that it could really weigh on japanese confidence. Incould see that play out equities. Certainly not very encouraging as a way to start the month. Anna not a good start to october then. Thanks very much, laura. Laura cooper joining us from our mliv team. Up next, bridging the gap. More on stimulus conversation state died. Steven mnuchin and and nancy pelosi edge closer to a stimulus deal, but will it get done in time . This is bloomberg. Anna welcome back to the European Market open. 50 minutes until the start of the european cash equity trading session. Futures points to the upside. Lets get a first word news update. Laura thank you. The worst ever outage in japanese trading. The Tokyo Stock Exchange has stopped trading for the entire indication for when trading can resume. It means its the thousands of shares will be frozen on the first day of the new order. Previous outages only affected part of the trading day. The format of the president ial debate is changing after the first chaotic match between President Donald Trump challenger joe biden. They said they want to provide a more orderly exchange of views. Biden says candidates should be able to speak uninterrupted, but trumps team says rule changes are moving the goal posts. According to a new report says more are likely to follow in the coming weeks as the end of the transition period looms. President Emmanuel Macron and Vladimir Putin are calling for a ceasefire between armenia and azerbaijan, but azerbaijans president is vowing to continue the military campaign until Armenian Forces leave disputed territory. The violence is more intense and widespread than at any time since a 1994 ceasefire. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Matt treasury secretary Steven Mnuchin and nancy pelosi are haggling over a 2. 2 trillion Economic Relief bill backed by democrats, but seen as much too pricey for republicans. House leaders postponed a vote to give the 21 more day to negotiate the compromise. Roll call says mnuchin is now offering a 1. 62 trillion proposal, bringing the two sides closer to bridging the gap. We are joined by our guest. Good morning. We have no deal, no further stimulus, no update, replacement, new package. That may be pretty positive. What kind of odds would you give it . There are continuing backtoback talks. Remain skeptical. There are new talks. These to be done , so all and all, we were men for the quarter, the u. S. Fiscal booster. What would anna what would change things from the position on capitol hill and make that support more forthcoming . If we see an uptick in the virus or a real selloff in u. S. Stocks . Would that mean we would be more likely to see stimulus coming forward . At theould have to look resilience and the speed of reaction. One that proved to be more then thel, more faster fiscal policy. I really tend to see the fiscal policy to address the it will havehile to rely on the central bank. What stance do you recommend investors take around stimulus and the underlying virus . Do you think investors should be cautious or risk off . Cautious is really the name of the game. Keep in mind a balanced portfolio. Assetsspectrum of risky while we are more mutual assets. Positioning, euro equities, those kind of relative positioning mean mutual risk balance is what we think is appropriate for investors about the current uncertainty in the market. Can china act as a haven at this point . Given the way the country has dealt with the coronavirus, the size of the economy, the role of the economy in asia. Does that mean china and other asian economies can act as an attractive destination for money at the moment . It is one of the themes we have been following to get to the region. Trigger forly a chinese equity themselves, but thatfor all of the sectors are linked to this country that proved to be successful when setting up its policy accelerator. It is a clear sign that china is living in the recovery. The exposure to the region and the exposure to china. What does that mean for the emerging markets appetite . Some could say that the emerging markets could be volatile and vulnerable during a period of heightened political uncertainty. On the other hand, you were of emergingicture markets that could benefit from being in the glow of china at this point . How do you treat the em asset class . , we are tackling a lot of selections. Distinguishlly to the several countries within emerging markets. North asia, south asia, the different things. Banks, a weak u. S. Dollar are definitely something that is beneficial for the emerging markets. We still favorite over local currency. We do think tempering the exposure for more emerging rates more contraction out of the highyield. , we might see some opportunities, again selectively. Whether the currency will perform on the equity stance korea, sona, south these are the regions where we are looking at. The emerging market is really a big part and offers the possibility to diversify your portfolio. Monica, thanks very much, stay with us. With us to talk about the big picture for Global Markets this morning. 7 20 in london. Coming up, 24 hours, 100,000 jobs lost. Companies step up the cost cutting programs as countries try to assuage fears of a second lockdown, but is there worst to come . This is bloomberg. Anna welcome back to the European Market open. Futures point to the upside, if modestly on the dax. Tens of thousands of job cuts announced in the last 24 hours. Disneys announcement that it would cut 28,000 jobs was just the beginning. Continent out continental produced a plan that would affect 30,000 workers. Shall set between 7000 and 9000 would be affected. Unload jobs. Would unitedn airlines and announced a combined 32,000 job cuts overnight. Plenty of job cuts as we reach this stage of the pandemic. I guess this is to be expected. This could symbolize companies with finances that are not in a great place, Balance Sheets that are not in a great place, but you think there are still opportunities in Investment Grade at it despite signs of stress in some places . Think we arei one of thering hottest risks in the aftermath of the pandemic. The guarantees are going to fade away. Will really have any affect on certain companies. We need to say that when we look to europe, the role of the something that is really relevant. Support isome partnering with the fiscal liken theorder to corporate sector. Perspective,tment it might be the case out of is moreld sectors appealing. Starting your recovery, it is usually eally [indiscernible] which is really Something Different now. Anna such as the role of Central Banks in these markets, monica. I want to talk about were dividends head here. If you are looking at the world of dividends, you have to include total returns for euro companiesstoxx 600 since the year 2000 two actually achieve positive returns for equities. You have to look at it on a total returns basis rather than an equity price basis. How important is the dividend flow for you . It is really important. Rates, youterest really are searching for yield and definitely the dividend is one of the elements that is critical to select a stock or region. The dividend story is one of the themes featuring our investment recommendations. Anna thank you so much. Thanks very much for joining us. 7 26 in europe. European leaders hold an emergency meeting in brussels. Up next, we will bring you the brussels addition. This is bloomberg. Anna welcome back to the European Market open. 30 minutes until the start of cash trading. European futures point to the upside. Lets get to some of our top stories coming through the Asian Session. Juliette joins us from singapore. Lets linger for a moment on the latest out of japan after the Tokyo Stock Exchange had to suspend trading or not trade at all. Will it review tomorrow . It is too late for today, isnt it . Juliette it certainly is. Normally, we would be talking about the close. Normally, there have been disruptions in the past in the morning or afternoon, but trade has halted the entire day. They are working on replacing the hardware, which they say caused the glitch and they do hope they will see trade resume tomorrow. There will be a press conference in around an hour, but this was a major disruption on the first day of trading of the new quarter when we were expecting japanese stocks to react to wall street overnight. We also had that 10 minutes before japanese trade resumed. The Japan Exchange says there was no indication this was related to any kind of hacking, but investors have been high on edge after we saw security threats really disrupt trade in new zealand for four sessions in august and we saw other markets in the country also suspend trading, but we did have derivatives the osaka exchange. We also heard from a strategist at tokyo security saying this is problematic in things like this happen. As i say, they say there will be trade resumed tomorrow. They are working to restore this hardware and this is an electronic disruption, not a Cyber Security threat, that is what we are hearing. Anna that kim is a relief to some. Lets get to the morning calls. You looked at the u. S. Election and i just spoke to a guest very positive on em, particularly around china. What is the report from Goldman Sachs around em . They are saying pretty much similar, that you could see it outperform developed markets. Sweeps the democratic could result in some higher taxes and that could help the em equities. Economies like mexico tend to be more positively correlated with the democratic win. They say chinese equities could benefit and when it comes to other factors for em, they say the vaccine is still front and center and that is where you will see the likes of the mexican peso and the brazilian rate. Rather than the result of the u. S. Election. All of these calls coming through as we start to see a potential Biden Victory here. Anna thanks very much. Juliette saly joining us from singapore. We are looking ahead to the start of november with interest. Lets get a Bloomberg Business flash. Goldman sachs is resuming job cuts, setting to eliminate roughly four hundred positions. The longevity of the position is forcing the biggest bank in the u. S. To wait out the turmoil. Wells fargo, citigroup, and j. P. Morgan are all planning cuts. American airlines and united are starting to lay off thousands of staff to reverse the job cuts if the government agrees to provide additional aid in the next few days. American is cutting 19,000 while american is laying off 13,000. The rate pressure. Google has line out touched has launched new 5g cell phones. Changes to its features and a lower price but the handset more directly in competition with the lower end phone. That is your Bloomberg Business flash. Much. Thanks very european leaders are meeting in brussels for a two day summit. The growing concerns that the Recovery Fund could be delayed as the phase stumbles over the rule of law conditions. Lets get some explanation now. Morning, maria. Markets had priced in a win for the Recovery Fund. Is it going to be ready in time . I was speaking to a markets life colleague, laura cooper, who was suggesting that maybe it was surprising about maybe a little bit of a delay. Maria exactly. The idea is that the Recovery Fund would have been operational by the start of 2021 and the European Commission would make and by mid2021, you would see the payments beginning to flow through countries that really need them. You think about countries badly hit. When european leaders agreed to the Recovery Fund, they did leave some gaps. When did