Stocks into value encyclicals keep up . Havens are bringing back some ground. The Federal Reserve warns there could be major downside for asset prices if the Economic Impacts of the virus is not mitigated. Will a vaccine or stimulus come soon enough . Welcome to the program, happy tuesday. Picking news from the u. K. , jobs data giving us a picture of the damage done or avoided on the u. K. Economy. The unemployment rate, a three month figure, we get an ,nemployment rate of 4. 8 exactly what was anticipated. It was on the rise. Very cushioned by the furlough scheme over the summer, and the end of september. Where we are on the jobless claims number, we have i go to this because we do not have survey data but it is interesting because it is october data, a little more impactful. The jobless claims change down by 29,800. , that looks lower than the prior period. Some of the data seems an improvement on the previous period. I go to that redhead line on the u. K. Unemployment story. 164,000loyment fell ending september. That is a little backward looking. We have had a stop and start furlough scheme. It had looked like it would be withdrawn, but it has been extended to march. Lets look at where we are on the equity market picture. The incredible gains yesterday in europe and the United States, the euro stockss 50 was up, the cac up more than 7 . A little reflection and backtracking on yesterdays enthusiasm. Ftse futures down 0. 8 . Seeu. S. Picture, we may something flatter. We did see some euphoria unwind during the session in the u. S. Nasdaq futures in the red yesterday. Has been highly representative of fastgrowing stocks. M home tech for futures in the u. S. , flat this hour. With stalling in the asian session, some of the hurdles we need to overcome with regards to a vaccine are better understood. Some markets in asia are paring their gains. Gold and the yen see small increases. Substantial moves yesterday. Isbal stocks, the rally stalling in asia. Concerns on largescale Coronavirus Vaccine studies. Yesterday the s p 500 closed at a two month high on the news of a vaccine being developed. Lets get into the markets with mark cudmore. Managing editor in singapore. Give us your reflections. I feel like a killjoy because i did not get to do this yesterday and ask how exciting it is that we have got a vaccine. Mark im the killjoy today. I feel like i am in this world where everyone is very excited about the vaccine. There is cognitive dissonance. I asked people when they thought they would be able to travel, more are pessimistic, thinking 2022, whereas i think by the first half of next year we expect a range of vaccines to be rolled out. I am more worried in terms of markets, we have a crisis right now. We saw the state of emergency. France beingity in used, and adding 41,000 cases a day. All around the world we are seeing coronavirus cases accelerate. From0 deaths last week up 47,000 the week before. Ofhink we are in the middle an extreme Health Crisis. It is great news for the vaccine effectiveness, but it will not change the game on this side of crisis. At the moment it looks like most people are taking a more positive longterm view. Anna the Health Crisis is the big thing and nothing should detract from that. If we look where investors might have become unstuck, it could be the individual asset class level. Will there be some people badly positioned ahead of this . And if we find out who got in trouble yesterday . There is a good point made to me saying it is amazing how markets were priced, given that we have known a virus was coming. Pfizer had an Earnings Call in october where they said they expect results, and they would have 40 million doses by the end of the year. We knew this news was coming. We knew we were going to get updated news on the vaccine, and yet the lockdown portfolio was outperforming up until yesterday. The rotation yesterday was extraordinary, and there will be funds. F pain in macro these extraordinary moves and Commodity Markets and gold and oil. Treasuries are with clashing back and forth. Fx a little more controlled, but some wild moves there. Across a number of assets we have done stop losses, and that will cause a lot of pain. When contending on this Health Crisis, the fragility of the market but people are trading optimistically now even if i am suspicious. Being suspicious, we need to be. What about the fed warning yesterday . I cannot work out if this was awkwardly timed or welltimed. Warningyou make of that given the support the fed is putting into the markets . We have seen high assets because of fed support. Mark i think that is right, and it is part of the rhetoric, keep pressure on the government to deliver stimulus. Maybe with vaccine news, there will be less pressure to reach an agreement on stimulus and that will be worrying for stocks. Fox are pricing stocks are pricing in data,ing to john hopkins one herd of 40 2000 fresh cases in the u. S. Yesterday 14 20,000 fresh cases in the u. S. Yesterday. You are still looking at a situation woerle december you will have north of 1500 people dying in the u. S. Every day. It is an extreme situation and people are getting overwhelmed in certain states. The fed is saying do not get distracted by the fact there is something promising that will come through in 2021. Focus on the real problem right now. Markets should Pay Attention as well. Thank you, mark cudmore. Up next, the u. K. Liens on Climate Policy as a way to reach out to the next u. S. Administration. Markets slide after the euphoria of monday, we bring you across all the major moves. This is what we have on dax futures, pointing to the downside. Into the story about the vaccine,. This is bloomberg. Green gilt will bring in a new class of investor. Partly driven by different investors coming in. That is something we want to tap into. The benefit of launching sovereign curve is it means private companies have the ability to piggyback on that. It will help grow a private green market in the u. K. And give u. K. Investors access to more denominated bonds. Sunaku. K. Chancellor talking about green gilts in an exclusive interview with bloomberg. S p futures flat right now, european futures unwind a little bit of positivity yesterday. U. S. 10year yield shot up yesterday. Biontech have a breakthrough on a covid19 vaccine. 90 of infections in volunteers. The most scientific advance in the battle so far against coronavirus. Some of the dust has been allowed to settle. Everybody has been able to get into more detail on what the company is saying from this press release. Thanu have more concerns you did yesterday about what this means, or more Unanswered Questions . It is an early read, and for what it is, it is as close to the best possible read we could have had at this stage. We knew there would be a lot more questions when you are only looking at people a couple weeks after being vaccinated. We need to know about longterm safety, you are not know about the longterm durability and the terms of how long it protects people. Basically to be able to analyze that. Anna on how long it gives people immunity, we will have to go ahead and immunize people not knowing that . Is that an uncertainty we have to accept . Yes, you have to do that because the alternative is that you hang on for another year trying to figure out if this vaccine has a years worth of protection or six months. At this point, you have to do that and figure it out as you go along, otherwise you end up with people being infected or dealing with lockdowns until you get that answer. Anna what about Global Distribution. That has gotten a lot of attention, the temperature you have to store the vaccine. The ceo was talking to my colleagues about how he thinks the Global Distribution effort will be fine and possible. It will be the last mile getting things from warehouses to where they will get administered, that is the challenge. Is that a challenge for you . Sam absolutely. When you want to keep it in a large volume before you start vaccinating people, at that point it can be kept in the fridge for a week. To have it in larger volumes, you need to keep it at the temperatures we are dealing 0 degrees centigrade. That is a challenge because Broad Solutions have not dealt with this before, but it cannot be something we cant solve after we have solved one of the biggest steps, getting a vaccine that does a good job. Anna that is the significance of what was announced this week. What about the issue of the makes minks in denmark, the strain identified there . How quickly can a vaccine be being effective to fit to useful in a mutated version of the vaccine . S askingy nonexpertnes that question. M it is a very good question. Given that it took six months to go from nothing to this stage of a trial, and the technologies at fizer and biontcech, johnson johnson. You can switch to a new version possibly, but you have the logistics of having to revaccinate people. The better thing would be to avoid creating situations where the virus can mutate easily. ,nna thank you very much Bloomberg Intelligence research director. President elect biden and prime johnson warn of a tough road ahead despite the vaccine news. We discussed the market implication, next. This is bloomberg. I must stress these are very early days. It is clear this vaccine even if approved will not be widely available for many months. Rely onsolutely cannot this news as a solution, and the biggest mistake we could make would be to slacken our resolve at a critical moment. We are still facing a very dark winter. That was president elect joe biden and Prime Minister johnson warning the public about a tough winter ahead despite the promising vaccine news that got the market so excited yesterday. U. S. Es fairly flat in the european futures coming back from early losses. Lets get a take on the markets, we are joined by Peter Shapley any. Minister johnson telling everybody to keep things in perspective. The market seemed to make up its mind quickly. Do you think the move to sell momentum and growth, to get into value, was that overdone yesterday . Peter the market prior to the announcement yesterday had already anticipated that on the more immediate term we will have a vaccine available. With positive news on that, we are firming up that resolve over the medium term. It does not change in the near term. Anna what are the prospects if that is your stance and you think vaccines will play an Important Role . What is the prospect of value stocks . Peter one of the things we have seen yesterday is that rotation everythinge, were from the lockdowns and Current System we have, and were everything else, the cyclical stocks were boosted up. The Financial Sector got a good boost. Thatis one of the themes cannot stay with us. Anna what about reflation . That is a slightly different theme, because one of the key ingredients for reflation that we had before hand was whether or not we come out of the pandemic, but how much Government Support and public money will be thrown at it. One of the dampeners out of the u. S. Election was the senate race, which will probably tie down the financial of the public money that can be thrown at the problem. Overall, if we came out of the recession that we currently have, if we can become a situation where we need lockdowns, that should be ultimately not inflationary but reflationary tendencies definitely. Anna do we have to wait until january until we get some certainty around the senate race to get a clearer picture on the fiscal stimulus, to be able to see where the reflation story goes, were treasury yields go . Peter we have to see what the next steps are in the u. S. , and in europe we know what the response has been, and we know it has been lockdowns, therefore gdp compressing. We will have to see what the followthrough is in the u. S. That is not implied in the market to the same degree. The numbers keep rising. We know typically they are three weeks behind europe. If you look further out, it is not necessarily whether or not the senate race goes one way or the other. It is about whether we get further fiscal support, which i am sure we will get one form or another, and if the economy can come out in the second half of next year, which seems likely at this stage. It is likely we see treasury yields picking up slightly, and we do see steepening tendencies. The question is the speed and magnitude. More government spending, you get more of that. Anna we saw interesting messaging around the fed, warning that some assets could face big declines if the virus goes unchecked. Is this part of the narrative, the fed trying to persuade the government to take the responsible choice to do more stimulus . Know and many studies have been done on this if you come to a stage where the virus is uncontrollable, that is bad for the economy. How do you deal with that . The fed is not going to go directly into advising the government what to do, that is not its place, but it is one of the things from the economic point of view that letting the virus go rampant is bad for the economy. Anna where do you stand on havens . They were hit yesterday for obvious reasons. How much focus do you give to haven strategy given what we know about the virus and the vaccine, and what we dont know . Peter if youre referring to haven strategies in terms of bund yields or shorter data treasury yields, it seems too early to let go of them. That is not because i have a bleak outlook, but when you look at what is controlling them predominantly, it is centralbank policy. The Central Banks focus on the here and now stimulus, but in the case of the fed that they have a more longerterm outlook, and what they want to do with policy Going Forward if the economy recovers. Average inflation and that type of stuff. Ecb here in europe, we think they will put easing measures in place. The yield curve in europe seems protected in my mind. Anna thank you very much, peter schaffrik, global macro strategist analyst, rbc europe. Coming up next, we will talk about climate with bill winters, ceo exec. Director, Standard Chartered. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Climate change is happening. This needs to be repeated over and over. Whether the transition to a Carbon Neutral economy takes place in an orderly fashion or in a disorderly one, there will be impacts on the financial system. 126 governments have includingto net zero, three global giants, china, japan, south korea in the last few weeks. At a minimum, Companies Must disclose whether the assumptions in their accounts are aligned with paris. We need policies that nurture Sustainable Finance and mobilize green investments. Announce june to 2021 next year, [indiscernible] year, we end of this will lay out for our tokeholders how we intend align with the paris accord. The economy challenges of the claimant transition are phenomenal. I ask myself, how much does it cost . A lot. But nothing we cannot afford, because the causes are survival. Our survival. Anna policymakers speaking at the Green Horizon summit in london. A new initiative to flight Climate Change, a task force started by mark carney and chaired by bill winters is building voluntary Carbon Markets to meet the goals of the paris agreement. The private initiative is set up to provide a blueprint for credit markets, allowing companies to offset emissions by financing projects which help the environment. Us now. Ters joins we start with the big picture. What role can they play in getting us to net zero . And talke to be here about a critically important topic. The volunteer Carbon Markets have been around for a while. We have been engaged for over 20 years, but they are not fit for purpose, not standardized enough, not large enough, not liquid enough, not transparent enough. He have not achieved credibility for anybody engaging that market can be certain that their money will go to the right causes. We know that we have committed to reducing Greenhouse Gases to the point where we can limit the temperature increase of the planet to 1. 5 degrees centigrade. The most important effort necessary to get there is for all of us to reduce our Greenhouse Gas emissions. Etc. Fuel efficiency we know we cannot get there without substantial transfer of value from those people who cannot produce reduce Carbon Emissions to zero or negative, but are prepared to pay money to somebody who can take carbon out of the environment. That is where the voluntary Carbon Market comes in. It is an opportunity for banks and airlines are shipping companies that can reduce emissions a lot, but not to zero. Take incremental reasons. Anna to pick up on that point, the criticism leveled on the Carbon Market is that it allows those who produce Carbon Emissions to continue to do s. Iis that a criticism you can accommodate. . Bill yes, we think we can. Everybody has to go about their own reduction plans. The difference between what one can reduce through their own actions and the amount needed to get to net zero can come through the voluntary Carbon Market. We have to have these sidebyside. One of our Core Principles is not to crowd out the requirement for companies to red