Writtish capital is set to see tighter virus measures. Here in germany, new cases rise by a record amount. Goldmans golden earnings. The bank posts wall streets biggest jump in bond trading so far this season. Revenue at all four divisions is up on the year. And burriss johnson tells e. U. Leaders he is disappointed by progress in brexit talks. The city of London Corporation urges both sides to avoid an act of self harm. Just under an away away from the start of european and u. K. Trading. We are seeing futures down substantially across equity indexes. 66 . Futures down. In terms of u. S. Futures, we see losses of about a third after percent, a little more on dow ubledigit on the jones and s p contracts. Anna, what do you see on the gmm . Anna lets get to that and see what is happening over in the asian session. We are weaker. We have futures pointing lower in the u. S. And you were and weaker through the asian sector as well. Outh korean sector down by. 7 . A lot to think about. The virus here in europe is certainly one of those themes. What will happen in london and how quickly . The germans. The fading chance of a stimulus deal in the u. S. It feels the market has resolved itself to the likelihood or not of stimulus coming in short order. But we will talk about that in more detail. We have u. S. Bank earnings, all of that adding up to a murky picture. Wells fargo and bank of america looking less so. The australian assets on the move in this g. M. M. , they are considering buying longer term bonds. The Australian Dollar down half a percent. We dont see the pound on here, which is a change, interesting given the brexit developments. We are in a holding pattern. They are going to wait to see what comes out of the the e. U. Meeting tomorrow. We have some numbers coming out of ryan air this morning. They are reviewing their compass itf capacity. Ryan air said they would cut their winter capacity from 60 down to 40 . A shadow of itself. Here is laura for the news update. U. K. Prime minister burriss johnson is disappointed by the slow progress of brexit trade talks. In a call with e. U. Leaders, he said he will decide if it is worth continuing to work for a deal. He previously indicated the u. K. Would walk away if no agreement was in sight by october 15. Germany is still optimistic a deal can be reached. It is always the right way to just ask questions that are difficult up to the last moment. My experience is sometimes in the last moment you will find a solution. Thailand has declared a state of emergency. As protests against the government continuing. Yesterday, tens of thousands of pro tersors broke through police lines to march on the Prime Minister areas office. They want new elections, and curbs on the traditional powers of the king. They say they do not want to bring down the monday average. Age ons are rising of in biogenesis. The latest development threatens to bring russia more coalascely into the conflict. It has a mutual defense pact with armenia and says it is studying the incident. Global news on bloomberg quick take, powered by more than 2,700 journalists and analysts. This is bloomberg. Anna and matt . Matt thanks very much, laura in london giving us the first word news. Asian stocks, u. S. And european futures dip as investors weigh earnings reports from american banks and fading chances of a stimulus deal in washington before the election. It is the virus that is front and center here in germany and in the u. K. As well as cases rise to a new record here. London looks at the possibility of a lockdown. Lets get to mark, our managing editor out of singapore. Mark, these virus concerns continue to increase. What does that mean for risk assets . I think the price action in the last 24 hours has been really quite soggy. I think soggy is the appropriate word. It is not like a notably bearish, but it is just that everything has been kind of drifting lower. When you look at the g. M. M. S it has not been wild moves. It has been a relatively quiet mark with a slight risk off tone. That appears to be the back up at the moment. People are nervously awaiting for the next catalyst. For so long we were told that stimulus would dreyfuss next. It is more of a discussion of what that actually means. It goes back to the stimulus, more of a next year story. We are waiting to see if we get surprise in u. S. china trade tensions. Until we see that surprise, they are traders. We are going with the back drop news. The virus is continuing to get worse and the economic recovery is stalling. We are entering the winter season and we still dont have a vaccine. A slight negative back drop, but not enough to see depressive selling. We talk about the possibility of further measures in london, we are talking about going from tier three to tier inside ning no mixing peoples homes. We are not talking about the toughest measures we saw in march. We will see whether that comes to past. Let me ask you about commodities. I know that is something the markets have been dealing with today. What can end commodities underperforming . I was looking at where we are onbrent, and we are static between 409 and 45 since the middle of the summer really. But what is the biggest picture story around commodities at the moment . Well, i think the point you have made about oil prices being relatively stable is an important one. That is a big change from the first part of the year when we saw the collapse and the powerful rebound. Underlying this is the fact that commodities best reflects that back drop, the changing back drop of how we are trading in this market. From spring onward we were trading the massive stimulus package that is came in. It was a reinflation store there. There was money to mutombo to work, and yes there was this terrible collapse in economy, but we were going to grow back. Now what we are seeing is hey, those economic recoveries are stalling. We are a little bit worried. We are probably going to see some more bankruptcies as some of of the support packages from countries desire son. We dont halftime next package from the u. S. It goes back to the virus sector and we are turning more negative in the economy. I am not saying a positive outlook comment until at least the new year. I am not saying commodities are going to sell off aggressively, but they are probably going to stay heavy for a couple of months. I wonder if a new president in the white house changes in a new year. Cameron has a new column. He says you always have to be careful when you think about the intersection between politics and Financial Markets. The temptation to project your own opinion on to the rest of the street can be overwhelming, which can result in a painful comeuppance. What do you think about the fact that wall street expects biden to win right now . I dont want to weigh in on whether that is the correct political projection, but i do think it is interesting how they have changed the reaction of how marks are focusing on that. My explanation for that is up until the summer it was assumed that we would be going into this election with a second stimulus package having been delivered. Therefore we wouldnt say a stalling recovery and consumers struggling. That would be the back drop going into the election. Biden would change other policies and not about a stimulus package. Many of the people at the time were focused on his tax plans. That was perceived as more negative for macts. Now it has become clear that stimulus is a post election issues and the composition of the government welcomes much more important. Not only does it master which president is there, but if it is a nt that is working with both houses of congress. The idea that one party may take one presidency and both arts of the house makes it easier to pass aggressive mical. I dont think they are changing the overall perspective on biden and what the Democratic Party means for control the next few years, but it is balls the most important thing for markets right now is that we et a new at 11 00 stimulus package. That looks most eyesly to come under a blue sweep of both houses in congress. Thank you, mark. Up next, will it be lock down in london after a curfew in paris . They are set to see tighter virus measures. We will get more details on that. That is bloomberg. Matt welcome back to the european open. We have some breaking news here, which under normal circumstances if we werent looking at brexit, a president ial election, a second wave of the coronavirus, this would matter a lot more. Tsmc sees Fourth Quarter seattles of 12. 7 billion. It is raising its full year outlook and now expects sales to grow by above 30 in u. S. Dollar terms. This is for the year 2020. A lot of people thinks this is the year of the disaster. For tsmc it is not. And remember, this is a company well, this is the Worlds Largest semiconductoror. It really has a lot of meaning for so much of the market, even in the tech week European Market, the tsmc results are important to watch today because they could affect a lot of other companies that trade around, especially london and in the netherlands. Anna yes. Any read across from this to other tech is interesting. The apple dimension to this is interesting as well. I am looking at the top live blogs that some of our colleagues are running while tracking the tsmc numbers. Profits jumping to 36 a record, held up by apple orders. There is that read across. Lets get a Bloomberg Business slash. Wells fargo has fired more than 100 employees suspect the of abusing Coronavirus Relief funds. According to an internal memo seen by bloomberg, the bank identified staff it thinks dawodued the u. S. Small ball administration. It followed j. P. Morgans finding. The u. S. May be about to up its curveballs on chinese companies. It wasnt clear when a decision would be made. Ford will fail to meet european limits on Greenhouse Gas emissions this year. It is falling short balls of a recall of plugin hybrid s. U. V. s after seven caught fire and they had a recall. That is your Bloomberg Business flash. Laura wright here in london. London is on course for tighter lockdown measures as virus cases continue to rise in britain. This comes after a curfew was announce inside paris and other major cities. Germany has reported the highest number of infections since it started. We have the chief economist here. From an Economic Perspective how Much Movement are you seeing in your forecast for the winter period for europe at this point given we seem to be dealing with a virus that is still very much on the move . Yes. It is still very uncertain economic titles. The i. M. F. Has just published their new World Economic outlook. They have upgraded things, but still a very deep global recession they are forecasting. It is uncertain for economists to predict. We need to get out of the Health Crisis first, and that is where the focus should be. It is not a tradeoff between economic wellbeing and health policy. The quicker we get out of this, however strict the measures have to be, the better it is for the economy in the longterm. It is going to be a challenging Economic Future for europe as well. I think what we have seen so far is policy makers have insulated the Financial Sector markets from what is happening in the economy, and some fiscal measures as well. You cant have that lack of alignment going on for a very long time. Eventually the markets have to adjust or the real economy has to get better. Matt as an economist, im sure you are always excited to watch animal spirits, and it seems to so optimistic is when it comes to things like vaccines. Have they gotten ahead of themselves a little bit in terms of this virus . It seems every time we get indications of a second wave, all of a sudden participants seem surprised . Yes. I think it is probably better to be on the cautious side. Science is moving slowly on this. We have had some obstacles that are being overcome. But economists have traditionally been more optimistic when it comes to technology. So it is something to be aware of for sure. Anna you are an independent forum for central banking and public investment. When you look at what Central Banks have done to fight this, it seems there was an initial flurry in the northern hemisphere, springtime, and then things have been quieter of late. Where do you see the next substantial move from Central Banks, picking up the bat on once again . Yes, well, i think before this crisis hit, we were debating what would happen when the next crisis hit. Central banks had run out of ammunition. They dont have any tools left in their tool box. We were surprised that they actually could do quite a lot. We are not in the same space again where we have said Central Banks have acted. They have taken a lot of measures. What is also important is that fiscal policy has started to move. One of the things about the recovery and how we design it is we have been two reliant on monday tony parker policy in the past. This is a crisis that requires primarily a supply side response. Central about about banks. Matt can a green revolution create more jobs and output than we expect . I think the focus has to be on a sustainable recovery, a green recovery. We cant go back to the system that we had before. We have to design the recovery in a way that is also in line with what the planet needs. That is how government in europe are designing the recovery. The e. U. s Recovery Fund is focused on that. In bailouts in the economy have to take that on board. We cant go back to the same system. It has to be a sustainable recovery. Matt thanks so much for joining us. We appreciate your time this morning. Chief economist, joining us talking about the effects of the virus and what we need to do economically. Coming up, germanys finance minister said he is confident that e. U. Recovery funds will start being used by the beginning of next year. More from my exclusive interview next. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open. Right now, 38 minutes away from cash trading. You see futures are moving lower. Dax futures now off. 9 . The finance than minister in germany, olaf scholz said he is confident the e. U. Can finalize the Recovery Fund this year. I spoke with him yesterday about fiscal stimulus, the Banking Union and brexit talks in an exclusive interview. I started by asking him if there was going to be any need a Debt Forgiveness plan for consumers and companies . My view it was right that we decided to give subsidies to many companies, especially the small and Mediumsized Companies so that they dont have a problem after the crisis. And it is important that we plement into the support mechanisms, equity instruments that are helping that a debt burden is not a problem for a company. Matt you have managed to take advantage of this crisis in a sense to strengthen the European Union, as you have said before, with a hamilton moment. When will you start to deploy those funds . Will selva you decide to start giving the money out to the countries that need it . We are working very hard to make all the political decisions, something that is a legal structure. I am quite confident that we will be able to do it this year so that the money can be used next year. Matt what are the next steps . I spoken with cristhian saving. Bank c. E. O. s dont think there is a Strong Enough fiscal union to make cogsborder cons cation work . We are now deciding on the very high sovereign debt of the European Union, which will be paid bakt. Included in this decision is the common idea that we will have our own resources for paying them back. This is creating a fiscal capacity for the European Union, and this makes the difference. This is the, if he you may call it, the moment. On the other hand it is necessary that we work very hard on the other questions that are on the table. It is the Banking Union, the Capital Market union. Matt when will we see the uropean government Deposit Protection scheme . When will this come to a reality . Anyone understands that we have to work intently on the question of Banking Union, and we have to understand the hopes of Banking Union, which includes a lot of topix that have to be solved. But understanding the end game of a Banking Union is key for doing the necessary decisions. It will not be just one question. There are 10 or 12. Matt can i ask you a brexit . Boris johnson had set tomorrow as a deadline and if there is no progress made he would pull out. It looks now like he is going to continue to negotiate. Do you think the e. U. Can make progression on this . It is always right to ask questions that are difficult up to the last moment, and my experience is sometimes in the last moment you will find a olution. Att german finance minister olaf scholz reminding us of something we forget daily. Nothing is decided until everything is decided. As much as we like to keep track of the horse race, you really just cant until it comes to an end in this kind of negotiation. Anna yes, all that matters is the finish line. Up next we will talk about the spanish economy and foreign policy. This is bloomberg. Anna welcome back to the European Market open. 30 minutes to go until the start of cash equities trading. One of the big concerns of the markets as we head into winter is the fight against coronavirus. Today we have had further news flow on that front. Spain is enduring one of the orst covid19 outbreaks. They announce add 72 billion youre stimulus plan. We are joined now by spains Foreign Affairs minister, Arancha Gonzalez laya. Glad to have you with us. Let me start by ta