Treasury market. European stocks are down by 1 . U. S. Stocks are up i. 2 . I also want to bear in mind what is happening with the chinese currency. This is important. 6. 6 four, below key levels. The dollar continues to weekend. The dollar is important, the euro is important, but the chinese currency is potentially very important. Jump inaly reporting a new daily virus cases to over 15,000. The other part of the story, we are talking about trade talks, the u. K. And the eu are ready to sit down immediately with the goal of finding a deal by midnovember after positive contacts between the two sides. Our bloomberg is european politics reporter. Ian, a great way to talk about itting the deal, getting done, was that Boris Johnson was getting his way and getting it done. Ian in the past five minutes, the chief negotiators have gotten off the phone after about an hour long discussion. We have not heard officially what they have agreed to do, but as you were saying, we have reported in the last couple of hours that it looks like the trade talks are back on. It was on friday that Boris Johnson, the prime minister, said he wanted to defend the talks just and the talks because it looked like they were going nowhere. It looked like the eu was not going to make any compromises at all, but it now looks like negotiations might resume as early as tomorrow. Guy we look forward to hearing the details of that call in a moment. Ian, thank you for the update. Got vincent juvyns, jp morgan Global Market strategist, joining us now. Do i buy u. K. Assets or sell gilt . We also might see arising pound and no tariffs in a serious way kicking in. It might be too quick. The upside of the bonds are more limited than the downsides in the case of a no deal. We have to look at the breakdown of u. K. Assets. We have seen it is heavily exposed to the energy, to the banking sector, a deal which would still struggle in the environment we are in. That would be from an inflation negative to brexit, which would by far be the most we are live in bloomberg World Headquarters in new york over the next hour. Here are the top stories we are covering on the bloomberg and around the world. Most [inaudible] understand what the story could be. Boe, begoing to have inflationary, are we going to reverse that now . Vincent it is too early. We have had so many false starts in this negotiation, and this rumor about resuming talks, but we would rather expect the end of these negotiations to be. We still hope for the best, but are prepared for the worst, meaning we are still short on u. K. Assets at the moment as we speak. European assets more broadly . European equities have been trapped in a range. Could brexit help them out of that range and the earnings season help them out of that range . Of thehat gets them out tight range they have been in since the summer . Wouldt a brexit deal help, some clarity on the rollout of the recovery plan, which has been agreed at the end but what is slowing european markets at the moment is more the health situation. Mention several times the Health Situations in European Countries were starting to see new restrictions put in place, luxembourg, where i am talking from at the moment, and france, so these limitations do not bode well for the Fourth Quarter of the year. From an economic perspective, we headwind for european markets and could see a headwind for Global Markets as we see risk spreading another region as well. Alix lets flip it. You had barclays out, saying that because of uncertainty, stronger ties to the u. S. , if biden wins the presidency that will be a boost for european assets. Then you have the virus issue and the u. S. Politics issue. Vincent a democratic sweep would probably be, if i looked from a european perspective, could benefit europe, as it could be followed by a green wave and we could see europe positioning itself in terms of green business, generally speaking, and that would be even more the case on the recovery front. That is something that could play well for europe. In the context of a more stricter story, we need europe to integrate itself much more than it has at the moment. Need to be able to challenge u. S. Companies in different sectors. But brexit, the clarity about the u. S. Election it is more about clarity than one or the other candidate winning the election would be positive for europe. Future, we need to continue in europe on the path that it started in mid nationallding the champions. Lets be honest we are leaders in the field of renewables, and that could be an area of expertise in europe that we could further develop in the future and would make obviously european markets more attractive in the future. Tenyear hase u. S. Seen yields rise quite sharply over the past couple of days. We have not seen the same thing, or at least the same magnitude here in europe. Do you think we will see yields pushing higher in europe . Do you think the ecb would allow that . Vincent i dont think so, because it will be a dangerous game. We have high debt countries in some need really for the support for the covid crisis. , so clearlynageable the ecb has mentioned a couple of times and its communication that rates are going to stay low for the foreseeable future, probably for much longer than expected at the start of the crisis. Each year, we publish a longterm Capital Markets assumption, where we give some rate expectation or expectation for the next 10 or 15 years for Interest Rates to normalize at some point, but not between time. Nd five years the ecb is probably going to maintain these Interest Rates low for the foreseeable future. In europe, Interest Rates have been pretty low. Remain so in the foreseeable future, in my opinion. The debate in the u. S. Is between short and speculators and longterm barriers, as i heard you say in your introduction. I am a bit more favorable for u. S. To ration that i am for european duration your am for duration then i european duration, but in china, it is also probably more attractive. If i was a longterm speculator, i would look more to this side of the world to look at quality duration and a good hedged portfolio. Of jpvincent juvyns morgan asset management, thank you very much. Coming up on the program, we will talk about earnings, antitrust. The ceo of verizon will be joining us next. This is bloomberg. Alix the rising topping Third Quarter estimates, shares have on up from early gains. Lets break it down with scarlet fu. Verizon is the largest u. S. For wireless character, so it is close to the new technology of 5g, and verizon posted a beat and raise when it comes to profits. In narrowed its fullyear profit forecast announcing flat to 2 growth. Over the longterm, verizon is targeting gdp plus, saying it will grow its earnings at a rate that is just above economic growth. Bloomberg intelligence calls the Third Quarter solid results in the environment, because Wireless Service is a utility, a must have rather than nice to have. You can see the lingering effects of the pandemic on different businesses. On the downside, verizon sold fewer phones, because story openings were a gradual process and people might be also waiting store three openings were a gradual process and people might also be waiting for the new iphone. That it isessage is focusing on the future, and that is 5g. It launched its national 5g network last week, and we will have the available will have it available and will have it in multiple countries soon. When you look at the performance of verizon so far this year, it is comfortably ahead of at t, which has moved in its own direction of combining content and distribution. Both players are trailing tmobile, which completed at sprint takeover in april and is now the number two player in the industry. Guy thank you very much indeed. Lets pick up where scarlett left off and talk to hans vestberg, the ceo of verizon. Lets talk about 5g. As scarlett was saying, you have rolled out nationally. Weve got the new iphone. Are we at a Tipping Point . Hans we have talked about this second half of 2020 to be very important for our execution of 5g. We built the first fiber reached network, and now on top of that, we are both nationwide, covering more than 2000 Million People 200 Million People, and we are 55, 60, so we will seek that by the yearend. We are running the Network Experience and as i said before, the launch of the iphone was important because this market, the u. S. Market, has such a high penetration of users. This is an important moment and we were extremely happy with the launch of the iphone 12, because all of them have ultra wideband inside the models, which shows how we are continuing together to work with our partners in this system. Alix the visibility now that it has been on sale for a few days, but you are giving it away for free, right . How long can you a, want, and b, afford to do that . Hans when it comes to preorders, there are preorders of two different models right now, more coming on the sixth of november. We are very early in the preorders, just a couple of days, but we have seen a lot of engagement in our Customer Base and the traffic in our stores, so we are very happy with what we have seen so far. Have any early to conclusions. That is where we are on it. Wen it comes to offerings, feel really good, what we have. We have the best network and a device that is working on things we have built over so many years, but we have also worked with our customer, our mix and match, where we have different types of offerings for our frommers, all the way premium unlimited to unlimited basic, where our customers can choose. We feel good about it, and at typical offering that we would have would become a new iphone. We got it to 5g, and this is the second most important launch iphone has done since the start of the iphone. The first one was of course the most important. Fast speed, reduced latency that the new iphone should provide am i going to get it . Are you going to be able to deliver that . If not, will there be disappointment . In citiesave built and stadiums and venues, that is where we have built right now, and we have it in 55 cities. E are building five more in the last two months, we built more of the wideband stations then there would be in the entirety of 2019. Will have 60 of them, double and triple of them and some of the cities, the coverage of them. This is what we have built in the cities and we have the best 5gon top of that, and nationwide. You are going to get the experience, but it is built in these cities right now. Alix lets talk about another headline here, this one coming from the dojs antitrust case against google. That they distributed the money to promote their Search Engine were not named. Was verizon one of them . Hans we are working with all of the big brands in this market. Amazon, disney, google, and we have an agreement with all of them. We have 20 Million Consumers on and theyess network, are no more specific in their relationship with google than anybody else. Guy if i get one of your new iphones, is Google Search going to be the default . Hans yes. This is the new iphone, by the way, which i have in my pocket. That is what we have right now on the phone, but we give optionality on everything we are doing. We are working with all of the top brands our customers want to have. We have the best distribution, the best network, and namebrand. That is why we have this partnership and our partnership ath apple last week, we have partnership with amazon. We are working with microsoft on the 5g mobile edge compute, and that is our strategy. We work with all these prime brands to give our customers more and monetize it. Alix i would like to get your perspective on what you think of the antitrust case against google and the animosity in washington among big tech, and how that may affect you in the longer term . Your relationship with google or the money you end up getting from google to put their search on your phones. Can you tell us how you are thinking about it . Same no, i have seen the news reporting as everybody else. Theve no insight as to what doj is claiming, etc. Relationships with Many Companies and google is one of them, so i have no comment. Guy we are not going to let this go just yet, hans. Do you have a revenue sharing agreement with google to install Google Search as the default option on the new phones that you send out . Have a long relationship with google when it comes to different types of applications. Of course, android is used on the phones, it is not iphones, so we have a commercial relationship with them. Alix we know you are not going to get a hard number. If we get some pushback from google and how they distribute their Search Engine, it is going to affect your phones and how can numerous react how consumers react to it. There has to be a contingency plan or something. Hans whatever decision comes out, we will cope with that. We have worked with many different decisions in our industry over time, so there is nothing unusual about hey, we are only seeing this in one day, so lets see what is going to happen. Guy another quick question as to the numbers. Hans, what would be a high improvement and guidance that you delivered to the markets today . What are the factors driving it right now and how sustainable are they . We talked about 5g. Is there anything else . Hans no. I think we are in a good saw that ourd you Service Revenue actually was coming to grow in the Third Quarter, even though it was 7. 7 , it was not very important. We improve from july to august and august to september, so we are improving. Clearly, what you see on the consumer side, we are now improving on the business side as well. We are improving that and ios, was doing f the best in six years. We are very happy with our wireless and wired infrastructure. We also saw our media is actually doing good in this to 20 inoming down the second quarter, and now down 7 and improving. It was manufacturers and we continue to have good can good cost control and the companies. We are also adding that with the iphone launch that is coming in the Fourth Quarter this year. Last year it was in the Third Quarter. That is why we see a good directory and a good base for going into 2021 as well. Alix we thank you for playing with us on this. Hans vestberg, Verizon Communications ceo. This is bloomberg. Its time for the Bloomberg Business flash, a look at some of the biggest business stories in the room right now. Has agreed to an 8 billion settlement into u. S. Stigations and how the Justice Department is announcing the deal this morning. They have already proposed a separate 10 billion settlement and local state claims. And a strongerthanexpected product in the Third Quarter as this sweetest company from huawei. Sweden said the company will be blocked from 5g networks if they plan to use chinese equipment. Huaweill the trauma over n,good news for ericcso guy. They are getting more market share because companies cant use huawei. Guy they are getting more market share in china, which is worth bearing in mind. They are taking market share away from nonchinese competitors, i. E. , other nonchinese companies. Nokia is probably doing fairly well at the moment, samsung is in the space as well, but it is interesting we have been talking about what is happening in this space right now. Hans vestberg was talking about ive spending taking place. Sweden, its home market is even banning huawei. Lets take a little look at where european markets are wrapping up. The pound is a bit of the story on our side of the atlantic, seeing some performance coming through from the ftse 100. 57. 22 is that number. 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Ask about saving up to 1,500 on your installation. Virtual appointments now available. Guy welcome back. Wrapping things up in europe. We are at session lows in europe or very close to them, down 1. 31 as we approach the close. Another difficult day, another range bound, probably less so the last few days. Really where the price action is, and then getting locked into the sideways range. We are pushing lower. We will potentially breakthrough 60. Lets talk about individual markets around europe and give you an idea of what is going on. Other factors contribute into the story. The ftse now with a 57 handle. The dax and the cac 40 down 1. 5 . The ftse 100 contending with a stronger pound this afternoon. The ftse goes down, the pound goes up. It is a mechanical process as you translate earning streams. A lot of international largecap stocks within the ftse that require that. Within the pound, we have broken through 1. 31 on the headlines. A more positive picture in terms of the possibility of a deal, the pound has priced that in. 1. 3134. We have seen euro strength. Broad dollar strength. Take a look at the chinese currency. The dollar weakness on the Inventory Data alex broken the last hour contribute into a story being pushed through into crude. Crude down 3 as you can