Other question is where what has apple become . Tom instead of the markets and the nasdaq war that we have seen , ties into apple, this was actually, francine, a huge deal yesterday. Arguably the biggest meeting they have had in three years. We are not going to go apple fan boy on it and explain all the stupid is that and the other thing. But i also want to go in with alex webb, sort of the racket that theyve got where everybody has to upgrade because this is old technology. This phone is a failure. I have to get rid of it. Francine the question i have been asked the most is, do we have 5g here, and people just dont know yet. Lets get to the bloomberg first word news with leighann gerrans. Leighann prospect of another stim list package before election day look bleak. President donald trump and Senate Republicans are at odds. The president is urging them to go big or go home. Senate majority leader mitch admitting to aly vote on small businesses. Nancy pelosi says the latest offer is not big enough. The worlds top Central Banks are urging governments to keep spending. They say that concerns about mounting debt should be put aside until the economic recovery from the coronavirus is complete. The imf is normally a champion of restraint, but the fun degrees it is too early to end support. Here in the u. K. , there is growing pressure on Prime Minister Boris Johnson to order a Circuit Breaker lockdown. The Opposition Labor Party and government says it is needed to get the coronavirus under control. Deaths have soared to the highest level since june. And russia has ruled out a deal with the u. S. On Nuclear Weapons before the president ial election. Willeputy foreign minister have a freeze on their arsenals called a freeze on their arsenals unacceptable. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more im 120 countries, leighann gerrans. This is bloomberg. Francine . Tom . Tom thank you so much. Get out the calendar, december 31, the e. U. Heating up with serious headlines. One of them coming out right now great wooden signals it will not walk away debt Great Britain signals it will not walk out from there are other headlines with these important meetings that frankly, francine knows a little bit more about than me. Sterling moves on this action. 1. 2939. Some oddities in the market, but the major theme is nasdaq up, the nasdaq 100, not the composite. Spx up 16 points. That is a nice big move,. 4 . 12,140. Creen, that is a quote we usually dont give. That is the nasdaq 100, and that is with the pros are watching right now, lit up by technology. You will hear me talking about that a lot more. Turkish lira, another ugly day, out to 7. 95. We are on the eightlire to the dollar watch. Francine going back to the british pound, will it did erase losses, saying the u. K. Has signaled it will not walk away from e. U. Trade talks immediately. Why this is important, there is that december 31 deadline, which she rightly said was the big one, but then there was the selfimposed u. K. Deadline for tomorrow, october 15, where they said if there was not of progress by then, they would walk away. This goes against what they initially decided. And what im hearing from insiders is that we think there is a call between Boris Johnson and the Commission President today. Boris johnson now taking this and hand himself to try and push away from try to push a way forward. Earnings will move some of the european stocks, which is why my data check also looked at european stocks coming putting financial shares up, leisure shares down, because of extra possible restrictions or lockdowns in the economy. Apple has unveiled its new iphone 12 models, promising they would be thinner, lighter, and faster, with the longawaited 5g technology. Each generation of Cellular Network technology on iphone has enabled Breakthrough Innovations and entirely new opportunities for developers and users. And 5g is the most exciting step yet. For so many people, this all becomes real with 5g coming to iphone. Francine that was apple chief executive tim cook at the virtual Product Launch yesterday. Alex. G us, it might be an interesting phone and something people want, but if i dont have 5g right now, why should i get it . Alex that is a very big ask. Incremental improvements from the previous generation, i actually think the best thing is the fact that it no longer has it will have the flat edges, phone is a lot less likely to crack. That is probably the biggest jump out feature in my eyes. Without 5g it comes short of being useful, but it will not be a game changer anytime soon. Francine how quickly his 5g coming . It is different than if youre sitting in london, in new york than somewhere else. 5gwe bring back the conversation to the forefront . U. S. Is far less proportionally than the u. K. , but in china they have 400,000 5g made stations ready. They have already sold 98 million 5g phones on china mobile. This is really a place to get the Chinese Market in order to compete in china. Apple feels it needs to have even though there are not that many applications for 5g technology yet. Tom i want to get away from the fan boy stuff. The miracle of all this are the chips. I was flabbergasted a few days ago when they talked about the 14 chip doubling operations perspective doubling operations per second. How does apple do that . Why do they do that, and no one else can do it but apple as they move the letter a14 chip out to the public . Is partly a question of capex. They have deeper pockets than anyone else in the world when it comes to r d, and they are looking at the most intensive piece of the r d jigsaw in check. They have huge teams working on this, at least least in israel. They have given they have done some candy acquisition of they have done some canny acquisitions of chip companies. To play this r d, they have to be close to the meters in this space. They they build on the arm architecture. Tom is anyone even close to using the ax bionic chip pass . Is there any equivalency . Is samsung even remotely close to the rigid, every year a leap condition in cheap in chip engineering . Alex samsung staff is broadly samsungs stuff is broadly comparable. Each chip has its own pros and cons. Samsung may do this at a scale which apple doesnt quite yet, and apple uses a lot samsung chips. , there is an assertion that actually samsung makes more money from the iphone then it does from its own funds because it has components in the iphone. So what alex said is profoundly important, that samsung does better naked parts for the iphone then they do playing around with their own less profitable stuff. Francine i really learned something. I dont know what chip is in my phone, but i will certainly find out during the break. Alex webb joining us on the legs apple products. Coming up, Leslie Vinjamuri. We talk u. S. Elections, 20 days away. This is bloomberg. Tom good morning, everyone. Bloomberg surveillance. Thrilled you are with us. Futures up 15, dell futures 28,686. Tting it 35 of the nasdaq 100 is three stocks apple, amazon, and microsoft. 34 point percent. You can find that on the bloomberg terminal. Right now you cannot find Leslie Vinjamuris world on the bloomberg terminal. You can in news. It is about politics and the raw emotion of what is out there right now. She is head of the u. S. And americas program. I want to try out a quote from your new study, and maybe what we will see not after the first tuesday of november but sometime in the vicinity of february one as well. It will not be lost on Vice President biden, then president biden, if hes elected, that the last two british Prime Ministers have gone out of their way to humor donald trump. Yes, they did. Bidenroud irishamerican, has already warned he will take a dim view of any u. K. Moves around the completion of brexit at the end of this year, the risk undermining the acclaimed good friday agreement of 1998. Leslie vinjamuri, this is not on the radar of pennsylvania and florida, but it does address term two of trump or term one of biden. Will there be a stark difference to the United Kingdom . Leslie well, i think there will be on any number of things. Not that comment by sir peter ross make off, the former u. K. Ambassador to the United States. You see the democrats pushing very hard on this question that the irish border and the implications for the future of the u. S. , u. K. Freetrade deal. But i think more generally, actually, if there is a change of administration, a change of leadership in the United States, verypresident biden is likely to come over, spend a lot of time in europe, and to expect a lot of europe, especially when it comes to the very big question of china, questions of 5g technology, national security. People are going to want to see europe cooperating with the United States in exchange for a much more present, committed america. As a partner, not only with nato, but on any number of issues. I think it would be a very big difference. We are weeks away from an election, and none of us tom to the election, and of course the president in pennsylvania yesterday, Vice President biden and florida, it is now that exhausting day to day grind. North carolina came up yesterday. Which state matters to dr. Benjamin to dr. Leslie vinjamuri . Leslie we are all watching pennsylvania. I personally am watching florida because what happens on election day is going to count so much, not only about which way the elections go but how quickly it is decided. I think all of us are very concerned that if the election result is delayed for several weeks, the potential for instability, unrest, contestation is significant. So florida is the state i am watching. Most of it is very close. Francine do you worry about turnout . If turnout isnt great, does it automatically give trump a better chance of winning . Leslie i retweeted this morning David Westerman of the political report, anticipating record 150 million and 160 million americans. In 2016, there were about 137 million americans, so people are mobilized, people are passionate on both sides. They want to vote. The question, as we know, is what will go wrong in the process of voting . In virginia, there was great dysfunctionality. There are very long lines, and we have seen this in the last day or two. There are all sorts of barriers to voting, but there is no doubt that people are ready to vote, they want to vote, they want to participate. America is absolutely energized by this election. Bracket orhat is the type of voter that President Trump needs to try and regain right now . Leslie well, it has been very interesting. What we have seen for the last four years is that President Trump has maintained that base, but he has gradually lost a number of other groups that were very important for him winning in 2016. So right now he is pushing hard to get suburban women back. Of white women voted for President Trump in 2016. But what we have seen in the current period is the only female demographic that is really staying with him are those women who did not go to university, did not go to college. The women who have gone to college have really begun to peel off. So he is fighting for the women in the suburbs, and theres also the question of who is going to get the Older Americans voting for him. Increasingly close. A lot of Older Americans are showing that they are supporting Vice President biden. That is another really important battle right now. Are 20look at where we days out, and of course the energizing platform one of the distinctions yesterday in the zeitgeist was a president that has to get back on message, away from the entertainment of it, the theater of it, and, yes, recovering from his illness and get back to policy. What is the policy message of the president of the United States . Leslie i think this one is really challenging because there has been so much distraction. We know the number one issue in this election is the pandemic. The health crisis, the economic recession. I think that this president , he is really trying to say to americans that he is the president. He can deliver the economy, that he can bring the economy back. He is trying to suggest that Vice President biden and Kamala Harris are too far to the left to do this and that they will tax americans and drive the economy into the ground. I really think he is trying to campaign on the basis of being the president that really restores the health of the u. S. Economy. Francine leslie, do you believe trump voter that may not be showing up in the polls . Leslie that is a very interesting question. That is unknowable, one of those known unknowns. I am sure there are some people who are reticent, whether it was President Trump or any other candidate, to openly state their political views. America come as we know, is as polarized as it has ever been. I think a few years ago the survey came out that people were more worried about their son or daughter marrying somebody from the other political party. It used to be somebody from another religion. If is, god for bid wouldnt be surprised if people did not always want to say the question is, how significant is that, and i suspect it is smaller than we think. Tom she is a what . Francine thank you so much, Leslie Vinjamuri there. Market,p on bloomberg the ims and managing director, christina euro gave a that is 10 30 a. M. In new york, 3 30 p. M. In london, and this is bloomberg. Leighann this is bloomberg surveillance. I am leighann gerrans with the Bloomberg Business flash. Liver has learned that the company has a market value of about 8. 7 billion. Kendo to looking for a big bet on shale in the midst of a historic downturn in the oil industry. You will not be seeing massive crowds on black at walmart. Number of customers will be limited inside it stores to just 20 of usual capacity. Other changes include sender carts. Sanitized business chiefs are calling on government to rescue the a billion dollar bailout after the coronavirus pandemic led to a collapse at travel. That is your Bloomberg Business flash. Francine . Francine thank you so much, francine. A lot of the focus is on brexit negotiations because we had that selfimposed deadline, on october 15, tomorrow. It seems from Boris Johnson step aside, they may decide to extend or at least not leave straightaway. No making hard decisions, is how they are putting it. It would be great to show it to see how towns moved on the back of it, and you can see there is quite a lot going on with leisure stocks down but financial stocks in europe up. Tom looking into the equity ket, 28,691, dow futures we are watching the nasdaq to the moon. Amazon in the middle of their prime day, joe feldman just out seeing day one of prime was extraordinary come up. 3 on the nasdaq 100. Isabelle Mateos Y Lago of blackrock is up next. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Advanced economies are doing better than emerging and developing economies, including china. Within countries, are seeing women doing worse in labor markets. We are seeing rising inequality. This is what we described as long and even highly uncertain percent. Tom something i read, the executive summary every word. I try to dive into one or two of the appendices, as they say, as well. Terrific work by the imf. Theyre like opinion out of. They get beat up constantly. Book, gradebook, redbook. Required reading. Francine lacqua in a conversation with her today. Right now isabelle Mateos Y Lago with us with blackrock. Are you kidding me . Global head of official institutions group. That means she is a big deal. That is all you need to know. Isabelle, one of the great juxtapositions is technological innovations. We are in the middle of prime day. Massive global inequalities in a moldy 2021. When we break the elite outperformance of technology from the observation of a world that is really struggling . Well, goodally morning, tom. It is the job of the imf to focus on what is not working, where there are the tough question that a lot are working with. It inield bonds, you find emerging markets, and you find. T in china but for a lot of donors, these are investments they would never have contemplated historically because of their risk parameters. And likewise for a number of them now, contemplate an investment in liquid assets. They would have thought they were completely offlimits in the past and now they have to be on the table. Yielders. N dividend portfolio construction is being completely taken back to the drawing board because people understand we are going to have these low Interest Rates for a long time into the future. Francine what is the biggest worry that there is too much risk and even parts of the market which is not as regulated as others and that could be dangerous for some kind of meltdown or that some of the risks that could materialize some of the Downside Risks that weve been talking about in the World Economy materialize . Clearly theat is risk, right . Right now the best case is we are now deep into the second wave of the pandemic or entering into it but we are beginning to see light at the end of the title. Progress on the vaccine and treatments and economic reopening, yes, were going to see more restrictions but hopefully we will be able to avoid going back to full lockdown. So it wont be a straight line. The risk is obviously there is a major setback in it the search that vaccine or a cure or policy stimulus, which remains so essential and the imf is very clear about that if there is policy fatigue in the public support phase, then we are in a much more dire scenario. And that is what the markets are pricing. They are pricing, yes, we are seeing light at the end of the tunnel. That is what where i would tend to see the biggest risk. Tom outside your purview, but 720 plus of assets yesterday nasa blackrock, which is an industry and a Global Financial system up to his eyeballs looking for a warm spot, is that ultimately what drives assets, what drives intangible investment is the money has to find a warm place . youre putting in a slightly dismissive way. That is the way finance works. And it is for the better, frankly, the fact that asset owners are trying to get yields, to get returns in line with their mandate. And thanks to that, youre seeing capital flow back somewhat to emerging markets who direly needed. You are seeing money flow back into Corporate Bond markets and carpets need the money to invest into the future. Yes, money needs to flow to where the opportunities are. But i would not see anything various about that. Tom thank you. It me squeeze in one more guess youre going to stay with us. Im sorry. Im trying to figure out what the hour is doing. We will come back with isabelle Mateos Y Lago a blackrock. I want to focus on the United Kingdom and some of the challenges francine is noting today on trade and dialogue across the channel and across the north sea. Right now without first word news in london, leighann gerrans. President trump is battling democrats and republicans over the proposed stimulus package. He is telling sent republicans to go big or go home when it comes to her proposal that Majority Leader Mitch Mcconnell is only promising a vote on a paycheck replacement plan for small business. Meanwhile, House Speaker nancy pelosi says the white house plan comes up short. She is demanding significant changes. Supreme Court Nominee Amy Coney Barrett avoided any major slip in a day of questioning on capitol hill. Couldnt democrats caster about abortion rights, healthcare, guns, election disputes. They made little progress. They asked her about abortion rights, health care, guns, election disputes. They made little progress. Prime minister Boris Johnson has that tomorrow as a deadline for an agreement. Negotiations are expected to keep talking past them. Johnson and european Commission President discussed the impasse today on a video call. Russian president Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman are urgent opec and its allies to stick to agreed production cuts. That puts pressure on members who have not seen living up to the promises. Oil prices are barely about 40 a barrel. New coronavirus outbreaks are hurting demand. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am leighann gerrans. This is bloomberg. Tom thank you. Futures up nicely. It is banking season. We will do the round again at 6 45. Thank number 42 comes out with earnings and we will look at that. This afternoon, a conversation with a chief Financial Officer of a challenged wells fargo. John shrewsberry as we do definitive work here on the banks, the prospects forward, and the income statement, the prospects forward for their stocks. This is bloomberg. Time to is no longer get this Prime Minister the benefit of the doubt. The governments plan simply is not working. Another course is needed. That is why im calling for to be to three week circuit break in england in line with the recommendation. Francine that was u. K. Labor leader calling for Second National lockdown in the could to come back rising coronavirus cases. We are back with isabelle Mateos Y Lago a blackrock. We have brexit, selfimposed deadline tomorrow with no softening of the stance from the u. K. Side, we have the lockdown which is unclear whether there will be a lockdown for very brief period like many are to break the shortcircuit. What is your take on u. K. Assets right now . a difficult place for exactly the reasons you mentioned, plus the impact of the pandemic, even without going into further lockdown. It is notk it is like the market is wildly the chance ofut avoiding for the restrictions or magically expect a deal is going to come out of a rabbit hat at the end of this week. So u. K. Assets, a lot of orertainty, no massive over under pricing i would say at this juncture. Francine do you look at negative rates as something that could happen in the u. K. , looking at examples around the world . Or is it something that could push investors to the brink . no, i think the bank of england has only done a good job of procuring the preparing the investors minds for this. Initially, i think it really did come as a big surprise that the measure was even being contemplative because it was such a departure from past pronouncements. But, yes, that is something i think investors definitely think could probably not this year, but if the Economic Conditions worsen, i think investors are prepared for it. They are not happy about it, but this is definitely something that is part of the talk. Tom where is the threeyear opportunity here . On a strategic basis looking out three years with the back and forth and back and forth of the continent in the United Kingdom, where is the investable opportunity . Isabelle actually, we are feeling quite good about europe is strugglingch with the second wave at this very second. But if you look further out, even without going as far as three years, you have for the first time in i dont know how many loans, fiscal and Monetary Policy working in tandem, working to support each other. After wishing it to happen for so long, it is finally happening in europe whereas it isnt to unitede extent in the states. And europe has put in place in the form of the Recovery Fund really the tools of building. Etter after this crisis having a stronger economy, having more cohesion across the different countries. We dont know for sure it is going to happen, but frankly, the political calendar does not look too bad, either, when you look at the support for populist parties across different increased it is not significantly or in some countries despite the are chips caused by the pandemic despite the hardships caused by the pandemic. Europe seems to be on a pretty good trajectory. Going out for the trip three years, going out further to three years, it is encouraging to see there is so much emphasis really on rebuilding better, on accelerating the target, on focusing more on human capital. Now, some countries will just talk about it and others will actually implement it. I think that is what will be important to look at. But on the horizon three years, theres every reason to be optimistic. Francine thank you so much, isabelle Mateos Y Lago. Coming up a little bit later 11 00 a. M. In new york, for copy monday get london 4 00 p. M. In london. This is bloomberg. Appleann of iphones are winning praise for its lower prices and new sizes. The company showed off four versions of the iphone 12 at a virtual event. The price begins at 699. The topper version has apples biggest screen yet, 6. 7 inches. Wall street expects the iphone 12 to kick off a new cycle of sales growth for apple. Cutseon has started job for salaried workers at its woody jet engine unit. There preparing for a long slump in sales and repair work. The cuts are part of raytheons plan to get rid of 15,000 jobs in its commercial aerospace business, including pratt and supplier collins aerospace. Bloomberg has learned that china plans to increase its stake in universal music by another 10 . Last year it let a consortium that bought a 10 of the Worlds Largest Music Company from france. The deal included an option to double the size of the stake by next january. That is your Bloomberg Business flash. Francine thank you. Climate change, Global Economic recovery. That is the message from leading figures in the financial world. Yesterday we spoke to the imf energy director, blackrock chair, and chief executive, and mark carney. They were quite hopeful a lot was being done because of this transition to build a better future. In mold the economy toward low carbon Climate Resilience by investing in green and resilient infrastructure. We can advance digitalization, which is apple is actually happening. We know a Digital Transformation allows us to accelerate going green. Tothe question for us is how focus on what is top of mind of people, jobs . Top of mine. Create green jobs. An hour recent Research Shows if we direct and our recent Research Shows if we direct the students to be oriented to green infrastructure, it will be fantastic for jobs. Jobs onet 33 million the basis of making the stimulus green. Secondly, people are worried inequality. If we do not digitalize everywhere, that would happen. So if we want to give opportunities to people, we have to go digital everywhere. And i would say for sure people worry about inequality growing. That is something that again, connecting the dots can help us prevent from happening. Carney, d. C. Much more interest when addressing Climate Change because of the crisis or at a certain point has it taken a bit of a backseat . Upi would actually pick where the imf managing director began, which is that i think there was a question and initially when the crisis hit, but very quickly it was recognized that there were parallels between what happened with covid, the importance of resilience and preparation and that is sort of on the defensive or riskmanagement side, but more positively, the need to build forward better, as the imf has been saying, and the importance and really the opportunity that comes from moving toward a more sustainable economy because it is more capitalintensive, jobhave a. A number of the programs that need to be put in place. Jobheavy, a number of the programs that need to be put in place. Individualsrt for and companies in the height of to emergency and transition the Sustainable Growth going forward. I want to say the interest is absolutely there. It is a policy imperative and im sure larry and others particularly larry, can speak to, the Financial Sector has gone mainstream. Francine minister, if you look at angola, one of the countries that has been hit the most because youre dealing with what everyone else is doing what, the pandemic, lockdowns, plus the oil price really collapsing. How do you look your priorities for the next 12 month . First of all, we need to make wee we survive and that preserve almost life as possible and will make sure our Health Systems do not collapse. It is also a priority to make sure our debt remains sustainable. Francine larry fink at some point was quite funny because i kept asking him, are we too optimistic . He says, there is a danger we are having a pollyanna moment. I think the one things timeline. If you transition the economies, thats fine, but do it quickly or youre just overcome by events. I dont know if theres a window of 12 to 18 months where they really need to do the hard work, policymakers stop coming up, we will speak to the imf managing director again. Tom moving forward on the pollyanna moments, david pearl of epic investment partners. Important update. Stay with us. Futures up 10. This is bloomberg. Tom nasdaq 100, less than 2 from a record high. Ande, 2. 1 trillion company in new york city, they are all leaving. We tech. Big tex. Francine lacqua will speak today to the managing director. In pennsylvania, the president must get back on script. Mr. Biden is a servant of the radical globalist. Binds this trump is the only senior trump cares about. Things are heating up and
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