Onnce places restrictions more cities. Pedro sanchez calling an extraordinary meeting. House signals it is open to a comprehensive plan shifting its stance as a result. Pushed higher. Gorman goes hunting. Morgan stanley steals a 7 billion deal for the purchase of eaton vance. From our interview with the ceo itself. Himself. Lets look at what futures are doing. Green arrows. See, they are incredibly slight. Not even 0. 1 . The percent missed price indicating a higher open then futures are showing you right now. U. S. Futurest the after stimulus talk. It will more directly affect the u. S. Economy. Nasdaq, dow jones and futures up 0. 4. Breaking news coming through. Lets get to that. First on the macro front. The u. K. Economy, clocking in some growth figures looking to be much worse than the market anticipated. The u. K. Economy grew at 2. 1 in the month of august. The estimate was 4. 6 . We were expecting that rate of growth compared to previous months to come down. A bounce in june, the expectation being for another bounce here. Maybe the last. 4. 6 . Instead, we get 2. 1 . Is the conservative part of the economy that is running into trouble. Services, index of rising 2. 4 . The estimate was for something up five. Services underperforming versus expectations. Lets get to some breaking corporate news. Of 4. 235 equity value euros that is still happening, by the end of 2020 or 2021. It is expected to close. Of 2021. Rst half interesting detail coming through. Whether they would get rid of the italian business. In london. Story lets look at where we are. We saw u. S. Stocks rise, european stocks rise. Pointing slightly to the upside. A lot of talk of stimulus stateside. Chinese stocks bouncing. Assets of all varieties bouncing. The yuan stronger permit the dollar is a little weaker as a result. Gold tickingd higher. Far fromocks, not alltime highs we saw last month. Joining us now is kristine aquino. Before we get to everything data, a spikeu. K. In covid cases, let me get your take on the u. S. Stimulus. It is getting confusing what nancy pelosi and donald trump are expected to agree on. What are we looking at now . Movement we have seen, especially in equity markets and the u. S. , does reflect that. A bit of a whipsaw kind of describe theple headlines. The idea of a bigger than expected package would be positive. Is thattion is how long going to last . The talks could turn any minute. We see that happen lots of times already. No stopping that from happening again. Anyone following the headlines and trading on this must be very busy by now. The poundfollowing perhaps a little dizzy. Any data we for got. There is a great deal of artistry involved trying to estimate growth numbers. Analystxcuse the community for being wide at the mark. Negative . E anything the pound has not really moved. In terms of the fundamentals, of course it is worrying. We are seeing from this set of data, largely misses across the board. Mild revisions lower, which tells us something about the slowing momentum and the u. K. Economy. That is before we get to the idea of brexit. When it comes to the pound, it has been an interesting story. Betse seeing those bullish and the offshore market, the positioning markets. Very resilient, perhaps a little of that is the and, thereness story does seem to be quite a bit of resilience built into the currency. I think the question, the kicker will be what happens with brexit and whether that will lead to a breakdown in those positions. Gets skewedket toward one direction, the risk is when something happens that is surprising going the other way, we see a quick liquidation of those positions. We are kind of getting to that set up where we see a lot of positive sentiment. Last,r that is going to we will see. We are going to talk to more to stops, pushing Climate Change. Your question, which assets will win as climates change . What are you hearing . Very interesting. Blog is itus in the is going to be about those companies that speak to necessities. Are talking about food in particular. Agriculturally related. Ofre is going to be a lot insecurity around that. If we see the effects of Climate Change ramp up. We are seeing the sense people get when they feel something is at a shortage. We speak about shortages in the u. K. That is likely to be a similar picture once we see the effects of the Climate Change story ramp up over the next decade or so. That looked to be speaking to that need for necessities, serving that need, would probably be one of the key winners in the story. Thank you very much for joining us. Runs bloombergs mliv. Lets get the first word newss. The top stories from laura wright. Is uncertain if the next president ial debate will happen. The commission that organizes it insists it will be virtual. But President Trump insists he will not take place in a remote debate. Plan. Den rejecting that saying it was the president who pulled out, not biden. 18 iraniannctioning banks in a move to choke out the economy. The news had been flagged in advance, with officials waiting for weeks. I ran faces so many sanctions, more will not make a difference. Virus program a backed by the world health administration. It hopes to give lower Income Countries the same access as wealthier nations. Details were not immediately disclosed 13 men have been charged in a plot to overthrow the government of michigan and kidnap the governor. Their alleged plan was to storm the Capital Building and try Governor Whitmer for treason. They planned to destroy Police Vehicles with molotov cocktails. Day,l news, 24 hours a powered by more than 2700 journalists and analysts. This is bloomberg. Thank you very much. Laura wright. Up next, spains Prime Minister calls for an extraordinary meeting. Yields continue to fall. The lowest since march. We will discuss europes virus resurgence. Welcome back to bloomberg markets. This is the European Market open. We are looking at a mixed picture in terms of futures. U. S. Futures on the rise. European futures having a difficult time choosing direction. That is possibly because what is going on covid wise. France placing more cities on maximum alert. Restrictions are being added in and grenoble. Meanwhile, in spain, the Prime Minister has called for an emergency Cabinet Meeting which could call for the declaration of a state of emergency in madrid. Yields in the spanish 10 year note fall to the lowest level since march. The covid cases are causing real concern. We are joined by rebeccas chaz worth. Rebecca chaz worth. Markets had been focused on the shruggingssues and off virus rates. Is it now more of a concern . Definitely more of a concern. What we have seen and what will help the market bring backup is recovery. What we have seen is net upgrades and recovery. Thank goodness, not seen the deaths but still seeing restrictions to the economy. Still seeing reasons why Companies Might see results downgraded. We may have seen some uptick, which is going to come back up again. A strange time in the market. So many parts of uncertainty. As we can see concern around what is going to happen in madrid, paris, london and elsewhere, we see yields coming down. The spanish yields coming down this morning. Attention. There are other examples. Is that because the market makes an assumption, the ecb will be there. Fiscal and monetary stabilizers will act . That is something very important to the market. The Central Banks the ecb and will havegland, they said we will do whatever it takes. Not at the moment, we do just have that focus on qe, we have a focus on fiscal stimulus. Will or wont we get stimulus is driving u. S. Markets day today. In europe, we have the huge recovery package. There needs to be that agreement on budgets. There are so Many Companies that could benefit from that now. See ets as a way to work around that confusion. The stimulus to what he. Explain. There is one part of the hit the nail on the head. Dividing the market in 11 sectors. You saw sectors really take off four years ago. The trump victory, that was quite a surprise. People wanted to orientate their portfolio to the winners. Those were areas that would see deregulation tax rises. Energy benefits. Fromcials benefited deregulation. A lot of Companies Running ahead of the tax cuts. Areas such asaw utilities come off. They were too defensive in that environment. Maybe we will see the opposite this time. Sectors clearly loom into view. I have been reading about how the fx markets, traders are pulling out the trump playbook. They are turning it on their head. Mexican peso and focus. What is in focus for you in terms of the u. S. Election at the moment . You have utilities energy. Time. Has had a rotten to get anynot going better. If you see a biden elected. Also, the full democratic suite, you are going to see and green policies, taxes against carbon. Spending on renewables and battery technology. That will benefit utilities who were early in this game. Look at the rerating of european utilities. You can pair that with energy. And Gas Companies are so late, they are going to end up assets. Anded financials, you could get a different market. The consumer might be in play as well. Both sides are talking about are we going to benefit the consumer. Either by a tax cut or paying them the minimum wage. Seen that in the market this wake. Anything planned by biden or trump is being pushed to one side. Matters is getting that fiscal deal. It does seem as if we have conflicting reporting about how urgently that might come. She stays with us on the program. Coming up, how trade uncertainties might impact investing. This is bloomberg. Welcome back to the European Market open. Theres point modestly to upside certainly in paris. Strategy. Investment there are a lot of risks on the horizon. Outcomes best be anticipated . What are the risks one of the risks you talk about is the dividend. What i you expecting in the Fourth Quarter . Is it too soon to expect evidence to return . Unfortunately it probably is. That is one of the known unknowns. Will we see growth dividends is too early for them. We are expected to get stress test but we will not hear about that straight away. Banks in the euro area have been restricted from paying dividends. We have a large oil and Gas Companies. One would think where it will prices are, predicting a biden presidency, it is too early for them as well. All is not lost. Interestingher areas like utilities and health care. How much does health care i dont want to say profit off of, but benefit from this crisis . I think we moved beyond those early days. April, may, we felt there might be a vaccine. That would be it. Everyone is expecting in the meantime, in the you have built up huge facilities which have been paid for actually by people throwing money into this. You have accelerated lots of r d. You have bought a lot of goodwill. Previously, 34 weeks after the election we would have been renervous about what a biden lead administration or democratic wave could do to the health care market, what they could unleash, and this environment you have almost bought time and goodwill. Vaccine. Wants that vaccineu have the coming you need testing. People are still looking for the cure. Even with the vaccine, you need the cure. Drugs he used have brought those to the forefront. Is a lot of interest in technology. I could ask you about that. Im going to take the opportunity to ask you about utilities. We dont talk about the sector is much as maybe we should given the hunt for yield. It has never been so exciting with that comes mainly from the sgm. If you think about what is driving a lot of the flows in this market, esq is a real feature. If you think about the environmental side, utilities give you the option to transition to green energy. Giving unstable cash flow, that is all terribly important when you are paying a dividend. A yield, and get some cases, it is almost twice the local market. These companies have is very interesting at the moment. Having you, as always. Happy friday to you and yours. Editorior equities joining us with some of her strategy and sites. Up next, the u. S. Government has taken an equity stake in a Battery Metals company that undercuts dependence on china for key materials. This is bloomberg. Welcome back to European Market open. Little bit of news on the Banking Sector coming through from switzerland. The ebs chairman will not comment on talks. A mergert looking for target. He had previously reported they were discussing a merger of equals, your favorite phrase. Line slightly an unclear what this means. Safe to say this is a conversation for investors. I think it is fascinating. Byl weber had been reported an investment magazine as merger, which is really an acquisition of either a number of banks ranging from Credit Suisse to deutsche bank, which has been discussed in the last year. Now he says he is not looking for an acquisition target that goes counter to what we had previously thought he was considering. Watch bank shares this morning. They could react to Something Like this. Do it sally joins us out of singapore. China is back. It seems a solid start to october. What data do you have for us . Watching these big moves. It has been a long golden week holiday. With what we saw in the one the, strengthening against dollar. This as we had a strongerthanexpected fix from the pboc showing authorities are happy with their recent appreciation. When we have a look at what stocks have been doing, we have in the keyolid moves indexes and china. The 10 year yield reaching its highest level since december. I want to show you what has been happening in the tech heavy china index. A lot of money going into risk assets. Track for its best day since july. What about the rest of the chinese economy . Have you got a sense how gold has been for the chinese economy . I was reading statistics about the number of chinese who managed to get away. Before golden week. 630 7 million, quite incredible. We saw those pictures of people packing airports. City says there were a lot more tourists than they were expecting. Top pick is a they areism looking to get into ashares once you have the listing in november. Cic a little disappointed with what you are seeing and macau. A lot of border closures. People are not at the casinos. They are expecting the gaming revenue to fall 7080 year on year. Thank you, Juliette Saly and singapore. Lets get the first word newss. The top stories for you from laura wright in london. Are back on. Ops the white house has versed its stance. With donald trump wanting a comprehensive deal. It came after nancy pelosi pushed back on individual measures for different parts of the economy. Placing people on maximum alert as coronavirus cases top 18,004 second day. Restrictions are being added in grenoble. Cinemas face stricter controls. Italy and spain have reported the most cases since april. Warnings of leading a sustained increase. Potentially closing restaurants and bars. There is a growing backlash over the rules and anger over boris handling of the pandemic. Global news, 24 hours a day powered by more than 2700 journalists and analysts who read this is bloomberg provide thank you. Laura wright with your update. The u. S. Government has taken an equity stake in a company the Company Received a 25 Million Dollar investment from the u. S. Government. Brazilianvelop a nickel and cobalt mine. Cobalt is an important ingredient in electric batteries. It is largely under chinas control. It is a move to reduce alliance geopoliticalst rival for key materials. Great to speak to you. Asyou see your is this having to pick a side here . Does this investment come with a lot of Strings Attached . We are fully allied with u. S. Interests. Of japan and other nonindustrial. A recognition of of geopolitical significance the overwhelming chinese control of the pipeline of supply, intoegic materials that go electric vehicles, battery storage. Normally, i would expect the ceo to say he does not want to take political sides. Considering that is your beategy, this election must important to you. Donald trump has championed that paradigm. Joe biden, maybe not so much. I dont think that is entirely true. The recognition of the importance of balancing chinas dominant position, areas that has been baked into the bipartisan political landscape. I dont get is really a political issue, it is a National Security issue. Does it hurt your business interests . To take an antichina stands at all . Are at the producer and, everybody once an alternative. Able nd user is everybody likewise once diversity. Position would increase in terms ofby china competitiveness. Potentially being involved in an escalating global trade conflict. It is the product of a geopolitical reality that will be with us for years and decades to come. Can you explain to a layperson, how rare are these metals . How difficult are they to get . Is there enough supply in this earth to meet the demand for electric cars coming up . We produce, process, and recycle. In the u. S. And canada, it is an important part of the equation. On minedot dependent resources, but in decommissioned batteries coming into the pipeline. Of the scale of geological occurrence. Certainly production will be there to meet the estimated to growth in demand driven by batteries. Electric vehicles, Renewable Energy systems. It will require higher prices to meet that demand. It is not so much one of , the issue is one of the capital and technology, pricing of the product to create economic viability thank you for bringing the story. Moreg up in the program, restrictions around the virus. As thewidens its curbs virus minces europe once again. This is bloomberg. Welcome back to the open. We are about 18 minutes to go equityhe start of cash trading across europe. Morgan stanley has struck its second mega deal in 10 months of acquiring an asset manager. The ceo of the bank said how the deals could reshape that and the other, Morgan Stanley in the coming years. This has been a 10 year strategy to take what is an extraordinary bu