Quite a lot going on in the markets. Quite a lot going on in the u. S. President ial race, certainly in u. S. Politics with President Trump tweeting i think 25 times yesterday, not mentioning his wife or a lot of the white house staffers that have been infected with covid19 and saying that we should not be worried about it. Certainly, it will play out in the election. European stocks are struggling a bit for direction following yesterdays broad market advance. We are looking at dollar per much study. Other Asset Classes really little movement. Lets get straight to the bloomberg first word news. Heres leighann gerrans. The coronavirus can spread through the air to people who are more than six feet away from an infectious person. That is the latest guidance from the cdc. The agency says this message of transmission is uncommon method of transmission is uncommon and happens in places with poor ventilation. It raises new challenges for reopening businesses and schools. Coronavirus is spreading again across most of the u. S. Experts are warning that School Weather may and cold cause the situation to deteriorate. 34 states are now seeing more cases than they did a month ago. New york city is closing schools in virus hotspots. The fate of businesses in those areas remains unclear. Spain may extend its emergency wage support beyond january. Madrid is ready to reevaluate the situation, but a lot more depends on a vaccine. An extension of the program could protect hundreds of thousands of at risk jobs. Spain already has one of the regions highest unemployment rates. Frank alderson is on course to join the ecbs executive board euro area finance ministers. He is now the sole candidate to replace eva marsh, whose extent on the team ends in december. The executive board will not achieve gender balance, which may prove contentious in the european parliament. Global news 24 hours a day, onair and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am leighann gerrans. This is bloomberg. Francine . Francine President Donald Trump returned to the white house after three days of hospital treatment for covid19. In a video released shortly after, he urged americans not to be afraid of the virus. Pres. Trump dont let it dominate, dont let it take over your lives. Dont let that happen. We are the greatest country in the world. We are going back, we are going back to work. We are going to be out front. Francine joe biden spoke out and urged the president to encourage mask use. Mr. Biden i would ask him to do this, listen to the scientists, support masks, support a mask mandate nationwide. Require masks in every Federal Building and facility and in interstate travel. Urge every governor and mayor to do the same. We know it saves lives. His Administration Just rejected a mask mandate for Public Transportation on friday. Francine lets get more now with Kathleen Hunter from our politics team. The president seems to be trying to turn his own bout with covid into a political advantage. Empathy ry little was very little empathy for the over 200,000 deaths in the u. S. That is the risk. I think when you have someone who has the advantage, as the president does, of having a worldclass team of medical experts dedicated to him 24 7, that is not the reality for most americans or most people on the plan. That is the risk, that he comes off as being cavalier towards a disease that has killed more than 200,000 americans, and one that democrats have said he is not taking seriously enough since the very beginning. We are already seeing democrats making the argument. Francine what are ongoing risks to the president s health and the health of those around him . Thats a big issue and a big question mark. We know that somewhere upwards of 10 people in trumps inner orbit, white house staff and people who work there have become ill with covid19 in recent days. We dont know how any more people are going to get sick. We dont know the extent to which the president s selfisolation is going to keep him out of contact with white house staff. The whole staff of people, beyond just political aides, weight on the president at the white house and do things for him and help assist him in the first lady. Those people would potentially be exposed. There are secret Service Agents who potentially could be exposed. We dont know how deep this is going to go. We know that the president himself, whether or not he is really out of the woods. His own doctor said perhaps he isnt yet. Recovery could be 710 days, several weeks. We dont know exactly what his Health Situation is going to be a week from now either. Francine i was going to talk to you about tomorrow nights Vice President ial debate, but then the president also said that he is ready to get back on the stage. How soon could that be . Well, i think that it is very clear from trumps actions, we know that he really thrives off of these rallies, and the crowd seeing him, which helped propel him to victory in 2016. He is agitating to get back out there. The big question is going to be the extent to which he drives that happening versus his medical staff driving the happening, and how long in the end he is forced to wait before getting back out there. That is very much an open question at this stage. There is some questions surrounding tomorrow nights Vice President ial debate, which is already sick going to take on a higher level of importance given the situation surrounding the president at this stage. I think that people are going to be paying closer attention to that debate. I also think there is going to be increased safety protocols heading into the. Francine thank you so much for the update. Kathleen hunter there from our politics team. Joining us this morning is etham, head of multiasset management at Royal London Asset management. When you look at how the president has behaved so far, does it have a Market Impact because it has an impact on the election or is it just too soon to say . Trevor the Market Impact is really the impact on the election. It is cliche to say that the market wants trump to win because he will cut taxes. The government finances are such a mess with covid all over the world. Big tax cuts are just not really credible. Biden is seen as more proregulation. What the market wants to avoid is a close election. They dont really care who wins. They dont want a close election that drags on with lots of rancor and uncertainty. The market started to firm up a little after the president ial debate. The polling is now showing joe biden opening up a pretty largely. How the president large lead. How the president s illness is playing into this is really hard to judge. If he was to become seriously ill, that is also an uncertainty that the markets really dont want. It also could be that there is a like whatpathy vote, happened in the u. K. When Boris Johnson was ill. It is another layer of uncertainty on top of the uncertainty that was already there. Francine what do you think is priced into the market right now . You talk about the market not wanting a close call. Are they worried about a contentious election or political gridlock . Trevor i think it is more the too close to call and they uncertainty of knowing who is in charge and the sort of impact that would have on society at large in america if you had this long, lasting dispute going on in such a polarized society at the moment. If you go back to the 2000 election, when it was not until december that the final victory was announced, it could be election month rather than election week. That is what the markets are most concerned about. If you are trying to hedge against volatility in november, you will find it is more expensive than december and october. Francine even if there is two, three days of squabbling, who won, or concerns about giving power to someone else, this gets resolved, right . The u. S. Has institutions to deal with this kind of thing, dont they . Trevor they do, but you have a president here who is not a typical president. He has spent a lot of time saying to his base that the postal votes are fraudulent. The very strong likelihood is he will do better on the night as the postal votes come in. Setting up for this situation where he may even go to a legal challenge, he may try to involve the Supreme Court. The Supreme Court has a republican majority. It can be quite messy and uncertain. In the end, it should get resolved, but markets dont like uncertainty while its actually happening. If it starts to create people out on the streets in american cities, for example, which could happen, over weeks and weeks of uncertainty, then that could also impact the economy. Francine thank you so much. Trevor greetham therefrom Royal London Asset management stays with us. Dont miss our coverage of tomorrows Vice President ial la harris andn kama;l mike pence. We get the first polls after he was released from the hospital yesterday. This is bloomberg. Economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua here in london. Lets get straight to the Bloomberg Business flash. Deutsche bank is not ruling out a take over as early as next year. That is as the lenders share price recovers. Speaking exclusively to bloomberg, the ceo set out the moment, m a is not his top priority, the turnaround is. The focus of Deutsche Bank is find to transformation. I am clearly focused on this on. The success over the past 15 months i think proved our point that this transformation was and is the right one for the bank. Therefore, this has top priority and my full management attention. Is taking an early 30 stake in suisse. It is buying the holding for 3. 4 billion euros. Remains fiercely opposed to what it is calling a hostile approach. If the acquisition goes ahead, it would create a global giant in waste and environmental services. That is your Bloomberg Business flash. Francine lets focus on europe and spain. They extended emergency wage support beyond january. The nations Social Security minister says madrid is ready to reevaluate the situation but a lot will depend on a vaccine. An extension of the program could protect hundreds of thousands of at risk jobs. Spain already has one of the regions highest unemployment rates. Still with us is Trevor Greetham from Royal London Asset management. It does seem that overall, we are we sought recovery that is much quicker than may be a lot of economists expected. But now, we are being hit by a second wave. How does that play into your Portfolio Management . Trevor we described the alphabet soup of what the recovery will be. Weve chosen the square root symbol. There was a rapid, almost vertical recovery, then it flattens out. World, there has been a sort of Glass Ceiling we have hit because social distancing is still enforced. The markets dont like that sort of Inflection Point from rapid recovery to sort of slower recovery. That, coupled with the president ial election and brexit uncertainty sticking around, i think that is why we are seeing softness in markets. We dont know how the Economic Cycle will pan out from your. Its a bit of a here. Its a bit of a wait and see moment. In the long run, we will get through this virus. In the short run, lots of uncertainty. Francine what would you buy first . Do you put germany, france, and italy in the same case as the u. K. . Or do you keep the u. K. Separate because of brexit negotiations . Trevor i think the covid issues are quite common across europe. In the u. S. , there is no obvious reek celebration. You could argue the u. S. Reacceleration. You could argue the u. S. Is still in its first wave. The numbers have remained quite high. You definitely have the Glass Ceiling effect in the Northern Hemisphere pretty much. Asia is doing really well at of this, chinas doing really well. I think you have this common covid issue. The brexit uncertainty is probably causing a bit of a pullover the u. K. And europe. I think where we will see that expressed the most is the pound. The pound fairly steady. If we leave with no deal, how rancorous it becomes. Francine actually, we will get back to brexit and a second. There is quite a lot going on. You say you buy on the dip. What kind of things do you buy . If you look at europe, its very difficult to see if a government truly has a handle on covid, because they have a handle one weekend than a month and a half afterwards, if some of the social distancing is relaxed, it could come back with a vengeance. Trevor our favorite sector at the moment is still the technology sector. If you are choosing stockmarket, we would probably buy the u. S. On the dip. That sector is so big in the u. S. Market that it is really outperforming on earnings grounds. The u. S. Is somewhere we would buy on a dip. We would probably also buy emerging markets. That is partly, as you mentioned, because the chinese economy is doing really well at the moment. If the dollar is weakened in a recovery, if it strengthens and then weakens into a recovery, that dollar weakness also helps Commodity Prices in emerging markets. It is really the u. S. And emerging markets we are looking to buy on dips, rather than the u. K. And europe. Francine thank you so much. Trevor greetham there from Royal London Asset management stays with us. Coming up, consolidation consideration. Deutsche bank could consider m a as early as next year. More from our exclusive conversation with the groups chief executive. Thats next and this is bloomberg. The transfer of our material Balance Sheet from london to frankfurt. We are waiting what the final outcome is. That is what you can expect from us and you must expect from us, in particular our clients. We are fully prepared for either outcome. I believe that london is so critical and important as a Capital Market location that london will always play a critical role, also for Deutsche Bank. Whatever the outcome is, which we areis hard to judge, good. Francine that was christian sewing talking about brexit. Still with us is Trevor Greetham. As many people say, a lot of the volatility will happen to pound. Know,too hard to, you make a bet now if we have a skinny deal or no deal or whether or not we have a conference of the a comprehensive deal . Trevor its very hard. We might not hear anything further a few days or a couple of weeks. You could come out in the end with a very thin freetrade agreement. No transition period really. They will have about two months transition or we might come out with no deal. I think the Prime Minister has set up the communication strategy that he is happy either way. He has argued that we can make a deal if the eu makes all the movement. That allows him to sort of say, if there isnt a deal, the eu messed up and its therefore. My their fault. My expectation is that there will be a very thin freetrade deal. With the leader of the opposition saying, get brexit done, make a deal, the bar is set really low. If he comes back with some kind of skinny deal, gives up a few of his red lines, people will still say, what a great dealmaker. Its quite binary. Francine trevor, what does it mean for a lot of Asset Classes . It does seem that a lot of the banks, but also may be the car manufacturers, just could not deal with the uncertainty, so they have already taken steps in the eventuality of wto agreements. Is there going to be much of a shock if something happens . Or are people pretty much ready for it . Trevor i think prude i think people are going to immediately ask whats next . Be a new form of leverage, this period of high tariffs or will the Prime Minister say, this is an australia style deal, and this is it. He has broadened a former Prime Minister as an advisor, i am kind of a bit worried that if there is no deal, the u. K. Will say thats it thats how we are working from now on. That creates all sorts of problems, not least with International Law and relations with friends and neighbors. There is still quite a wide spectrum of outcomes here. The pound could we can quite a lot weaken quite a line that outcome. Its hard to know which way the stock market would go. Francine we will talk again about brexit, i know we will. Trevor greetham there from Royal London Asset management. Coming up, we talk about president and joe biden. This is bloomberg. [announcer] imagine having fuller, thicker, more voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music francine economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua, here in london. Lets get to first word news with leighann gerrans. Leighann President Donald Trump returns to the white house last night after three days of treatment for covid19 at a military hospital. To significantly restrict physical access to him as he continues his recovery and assigns of defiance. He remov