His cabinet. Caroline. Us bring in about psa. T ask you what do we expect to hear from the board . How quickly will the acquisition happen . Groupne we have the psa Board Meeting this afternoon. Signing and mo you by the end of the day. Sources, to bloomberg one big obstacle has already been removed. A stake owner is backing the mou and this is key. Remember in june, the state backer was responsible for making the merger between fiat and. The future governance of the new entity and the synergies between them and the psa group. To remainthe chairman chairman of the new entity. Expect also the psa group to have six seats on the board. We expect the entity to be based in the netherlands. It will have offices in new york, paris, and milan. To access the u. S. Market with chrysler and jeep. However, two legal obstacles remaining. One with italian authorities and the other with chrysler being accused by General Motors of bribery. The company has denied wrongdoing. Anna thank you very much. More on the car story in a moment. Let us get to robin matheson. An important day in u. K. Politics. Boris johnson is going to amend his rights it deal to guarantee that this is not extended. Italian the governments hands making it more difficult for him himself to delay brexit. It is interesting because in the last few days there has been a lot of conversation regarding the bluster of Boris Johnson and how it was just that for him to win the election. Making it very clear that he will drive a hard bargain with the eu and he will exit the eu at the end of january and then there will be a short phase of negotiations. Areeither way he says we done by the end of 2020. That still opens the door to the idea of a no deal brexit. If they get to the end of next year and the arrangements are not set, the alternative will be to have an extension though he says he is not interested in that. It raises the possibility however small that the u. K. Could crash out without any further arrangements made. Matt he is giving himself less than one deal to do a trade deal with the eu. Deals takeseen trade forever. If feels that way. Angela merkel saying last week, this is a short period of time to get things done. And johnson will have you start quickly and move fast. The u. K. Will have to give some concessions to the eu. Want to discuss things around taxation and labor arrangements. There are a lot of prickly issues that could send these talks into delays. There is still a group and parliament that feels the u. K. Should not be giving too much away in these arrangements. He will have to navigate not just brussels but his lawmakers at home in a short amount of time. Anna they will be interesting to see what kind of divergence u. K. Will want to obtain from brussels. London andson in carolyn conine from paris Carolyn Conan from paris. Matt some markets including the economic slowdown in south asia. Let us discuss with bloombergs manus cranny. Two days ago there were two crops of warnings. Electrolux as well. Q4 is not looking so festive so far. Manus it is not exactly ho ho ho. That was an idiosyncratic story. When it comes to the brand of lever. A lever uni selling ass not much. You have challenges in ice cream. These are the issues within this business guiding sales to the bandwidth of 3 5 . It is the slump in asia and the language they used about america is that it will take time to recover. And there in lies the point. If you disappoint this market in all of the melt up moments, you will get pushed very hard. This is alan joe coming to the end of his first year of running the business. He started on the first of january, 2019. And he closes out the year with this disappointment for investors. When he started to talk about what the last quarter would mean for investors, many invest ors say it is important globally. Manus he has been there a long time. What Deborah Aiken had to say about the business in terms of his year so far and it is interesting because she talks about the operating margin still being at 20 . The cost cuts program on track. What is interesting is the disposal that may come into play going into next year. Pohlman was out. Starting upubtedly 2020 perhaps another year for change. Look at her last slate in terms of the issues. Matt i am very calm this morning. Anna it is only 38 minutes into the program. Manus i have a global objection. He is allowed to make a hat when he is out and i am not and im taking it to the highest levels today. Att you have hair manus cranny in dubai with a full head of hair. Thank you for joining us. Ext, we talk about car sales the outlook for the full year is still pretty bad and there has been a lot of negative news. We will talk about that as we watch this merger today. Bloomberg radio is live on your mobile device or on Digital Radio in the london area. This is bloomberg. The combination of pressure, a much higher focus on performance and on this Movement Toward consolidation of managers by the large Pension Funds. We are seeing a few Business Models winning and most losing. Matt that was the ceo david hunt warning there about the disparity between winners and losers in the Asset Management industry warning 80 of funds could effectively become zombies. Anna a topic we will no longer talk about in 2020. Boeing is to halt production of its 737 max next month. Deepening the plight of the jet maker. Expects thatoeing they can no longer churn out the max at the current pace. Thirdparty merchants can no longer use fedex this Holiday Season because it is too slow. The move highlights the giants control over how some products get shipped to consumers. Antitrust approval. It has jumped the final regulatory hurdle for the nearly 5 million deal firstdegree to in february. Roche has had to repeatedly extend its offer. Regulators have been concerned about how it will treat the market. Past plantbased beef import. Brown says a new chicken line is likely to get more attention in 2020. The companys beef and sausage products are already available globally. Look at what the mobile phone did in relation to landline. Nobody had to denigrate the landline. And we dont think we have to denigrate animal protein. We just want to give the consumer a new and better choice and let them make the decision. Your Bloomberg Business flash. Anna thank you. The psa group is set to have secured the backing of the french government for its merge with fiat chrysler. The board representation holds roughly 12 of psa. The deal will send two carmakers into a global giant. Rose european car sales 4. 5 in november, the third month of gains in a row putting sales on track for a flat 2019. I of todays Board Meeting, we b metzler,e head of juergen peoplieper. Does this create a global giant to be reckoned with . Ofrgen yes it does in terms size, globalization and revenues. One of the top five carmakers in the world. Simply, this group has some advantages on its side. It is strong in the european volume market and in the north american suv market but on the other hand, it lacks some things like very good Premium Brands except for ferrari and a good position in china that it is sensible in the end. Anna many people make the argument that we need to see consolidation in the sector because of the amount of research and development bending required. The big event towards the big pivot towards electric vehicles. What will make sure that the m a done in this sector will produce results allowing for the benefit to be reaped if you like . On one hand, it is a for both move companies. Fiat chrysler is not Strong Enough to compete with the toyotas and the volkswagens of the world. Offensive move because he wants to make peugeot one of the best carmakers. Lowes Companies Come from not such a good position in terms of new technologies. Peugeot is ok. Fiat is not so good. This is notce rocket science. Everyone can buy batteries at the end. Both of them did not lose so much. The combined company has a chance to be in one or two years a very good competitor. Matt do you like bmw . Do you like volkswagen . You dont have a buy recommendation on daimler. Why is this stuttgartbased carmaker the loser . Juergen one thing is management. To make it simple, i like the management of volkswagen and i like the new management at bmw. He is a great guy in this industry and daimler has had problems in the past. More or less for 20 years or so. Lack ofhas always had a management talent and of course, howtill do not really know good he is in the end. The First Six Months have not been that great and the performance recently in london was also not very good. I am not very impressed by isagement and also, daimler makers in two german terms of technology. Matt thank you for joining us. , head of research at b metzler. Morning wetuesday will recap some more of the stocks to watch at the opening. Limits Growth Outlook. We will talk more about that when we come back. This is bloomberg. Matt this is bloomberg markets, the european open. I am matt miller in london. We are 10 minutes away from cash trading across europe. Let us get to hong kong first. Johnson is guaranteeing that the brexit transition phase is not extended. He wants to deliver his election promise. Highlys has warned it is unlikely negotiations will have enough time to complete a deal. The move sets up a possible cliff edge for a no deal brexit in a years time. The eu has agreed to a landmark regulation. Lawmakers approved and accord unsustainable activities overcoming definite divisions on what technologies should be included on the list. The agreement should help set a framework for the fastgrowing market of green finance. Nuclear and gas was included on the list of green technologies. Says it is england less worried about the dangers of a hard split with the eu. Resenting the Financial Stability report, mark carney said the risk of a no deal brexit still exists but becomes less likely. He says the Financial System is prepared for the latest stress test. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Anna thank you, very much. Time for your morning call. If you dont like the futures market on equities, take a look at bitcoin which has been tumbling in the last few weeks. Dani burger has more. Dani equities going higher and bit point going lower. The first time it is reached this level in about seven months. The have been looking at outlook which does not seem good for bitcoin. The currency keeps churning lower lows. Any sort of balance we get from here come it is likely to be more feeble. That is the word he uses. We have seen bitcoin rally since june but ever the humble analyst coming he says his track record has been mixed. You would be hardpressed to find a bitcoin strategists that cant say the same. He is saying take this with a grain of salt though the technicals are looking negative for bitcoin. Matt dani burger talking about bitcoin. Let us get to the stocks to watch ahead of the open. The number things to keep your eye on especially issues that to europeanross companies. For example, you have the amazon story that they are banning fedex. That could read across clearly to ups but also to Deutsche Post and others. Anna keeping an eye on all of those delivery companies. And speaking of unilever. It says it is not living up to its targets. Is he isew ceo holding to his decision. And changing Consumer Habits and developed markets is part of the story. And it is having a bit of a Sluggish Performance in asia. Matt we also have the story of boeing which is halting its production of 737 max. A supply chain picture. This is fascinating. A huge company with huge implications for the u. S. Economy but also for Companies Across europe including airbus. And anyone that supplies them. And if you pulled up that supplier list you have rollsroyce and a number of other European Companies. This might be something that could benefit airbus, it may not benefit the other suppliers to boeing. Also keep an eye on the Hotel Business which is selling a toke and giving cash shareholders. Matt coming up, the market open. We are just more minutes away from the start of trading. We do have futures here pointing down even after big gains across asia. This is bloomberg. [ dramatic music ] this holiday. Ahhhhh ahhhhh a distant friend returns. Elliott. You came back and while lots of things have changed. Wooooah woah its called the internet. Some things havent. Get ready for a reunion 3 million light years in the making. Woohoo yeah anna a minute to go into the start of cash equity trading this tuesday morning. Unilever guides lowered. The ceo fall short of his predecessors targets. Halting reduction. Boeing says it will halt the production of the 737 max in january. Meeteugeot shareholders today. And eu car registrations rise for the Third Straight month. Matt, talk to us about futures. Overnight, on a lot of the big indexes ftse futures are down. Some might be taking money off the table although we are hearing from one of the biggest Goldman SachsFund Managers that now is the time to get into the european cyclicals. Anna let us talk about the start of the tuesday trading session. The futures were suggesting a little bit of weakness. Fore the market pausing consolidating a little bit. As a result, the ftse 100 is down by 0. 2 . A positive correlation between the ftses largecap and the pound in london. That was not the case for much of the preceding period. We see the ftse coming down and the british pound weaker as result of the latest news lines. No deal brexit at the end of 2020. Netherlands down by 0. 4 . Euros stocks down by 0. 2 . A negative session for the European Equity session. A Progress Report in terms of trade we know a phase one deal is going to be signed but we dont know when. And we dont know what it means in terms of agricultural purchases by the chinese. We are still looking for detail as we head into next week and the quieter period of the Holiday Season. Let us look at the sector picture. Consolidating what we already know about trade. We see a bias to the downside it seems from the sector picture. Financials mixed ted negative. Staples definitely to the downside as well as health care. Energy and utilities to the upside. Health care is down but utilities are up. The unilever move at the top of the trading day how negative that is and the knockoff impact it will have on other consumer facing companies. Matt the staples are down. Let us get to what we see in terms of individual stocks. Youll have to enter 54 stocks stocks you have 254 gaining. Airbus is adding the most points to the stoxx 600. You might expect that after the disappointing news out of boeing. Points the second biggest addition to the stoxx 600. Take a look at your losers here on the mov. Levernow lever uni the biggest, down more than 4 . He also down. Consumer staples are getting hit hard. Otherwise, you see lloyds on the downside. Interesting to see. We heard more from the rank of england. Interesting to see the u. K. Banks in the losers list including lloyds and the royal bank of scotland. And some irish banks also operate in the u. K. Are down. Discuss the European Market moves with a look at what could go wrong. Mike bell joins us from j. P. Morgan. We were reading through your notes and we thought you sounded a little gloomy with regards to your outlook of 2020 even though we have gotten all of this seemingly decisive news out of the British Election and u. S. Trade with canada, mexico, and china. What is your outlook . Has i think the market already priced in a lot of good news. On the back of expectations that we will see a turnaround in Global Manufacturing and a browns in the pmi and a bounce in the pmi surveys. And we will get the trade deal which now it does look likely and some resolution on brexit. Which may or may not be the case now given the news we have gotten this morning. I think the valuations well constrained the upside from here will constrain the upside from here. We need to see Consumer Confidence react seller rate reaccelerate. Anna we talk about the strength in the labor markets globally or certainly the developed markets. And we have seen the incredible job creation in the u. S. You have drawn my attention to the adp picture. In contrast to the nonfarm payroll picture, in the most recent timeframe, adp coming down as nonfarm payroll goes down. What are your concerns . Mike i think that chart is fascinating. It tells you that one measure of employment growth is slowing quite materially. Areally when corporates under pressure, Companies Often respond by cutting jobs. Margin pressures lead to costcutting and that is how economic cycles can sometimes come to an end. The fact that we have divergence among the data come it tends not to last very long so we would expect the gap to close pretty soon but which direction a closes in is critical to the outlook. The market could start to question the pillar that has held up equity markets this year, that the u. S. Labor market is ok. The good news we saw yesterday from the u. S. Service sector pmi is the labor component picked up a little bit. That leads me to a more positive view that the labor market still looks ok. Matt isnt the other good news that the fed still has a lot of still has a lot of room to move . Thatquity sectors are not worried about the underlying economy as long as the central bank is passing out free money, right . Mike we have had insurance cuts. The fed has made relatively clear i think that they will certainly cut if the data gets worse from here but in that scenario, if the data gets worse from here, we are not seeing the real acceleration rea eacceleration priced in this year. If we were to see the fed cutting more from here, that would worry me that it is a sign that we are not seeing a pickup in the Economic Data that is expected. Anna this chart was also fascinating. In terms of whether you see bubbles emerging in the u. S. Looking at the white line. This is u. S. Homebuilder confidence once again picking up. This in relation to the fed suggesting we are heading towards alltime highs in u. S. Homebuilder confidence. Does this tell you something be fed should be aware of . Mike this is the part of the economy that is most exposed to rate cuts. We have seen a significant rate cut. Ha survey. Building permits have picked up which suggests that rate cuts are stimulating this sector. When we look at bubble risk, we are more concerned about corporate debt. Has come debt to gdp down. On the other hand, corporate debt has gone up. E are more concerned matt interesting stuff. Mike is going to stay with us, Global Market strategist at j. P. Morgan. Raising the bar. The bank of england passes banks on stress tests but it lists a key capital demand. We will discuss that. This is bloomberg. Anna welcome back to the european open. 11 minutes into your trading day and European Equity markets on the back foot this morning. Down by 0. 5 , the stoxx 600. Businesst a bloomberg flash. From hong kong. Is falling short of its growth target as it gives in to consumer demand. It says 2020 will see underlying growth in the lower half of the companys target. Boeing is to halt production of its grounded 737 max deepening the crisis engulfing the playmaker. Sources say going now accepts it can no longer turn out the max at its current pace. No layoffs are planned with many workers temporarily reassigned to other teams. Approval ofrned its takeover of another company. Has had to repeatedly extend its offer for spark as regulators investigated how the acquisition might affect the market for treating people with hemophilia. That is your Bloomberg Business flash. Matt thank you very much. U. K. Stocks are pointing down this morning. That is after the postelection gains from what the companies sending the stoxx 600 to a record high yesterday. The bank of england says all of the banks have passed stress tests and can whether a financial crisis. Anna despite this, the financial we certainly see the impacts of that. Some of the big banks in London Trading lower. Mark carney also spoke of the risk of a disorderly exit from the eu. The worstcase scenario is effectively a no deal disorderly brexit. The probability of that scenario has gone down because of the Election Results in the intention of the new government. But the scenario itself and the risks that we protect the system against has not itself changed to. It just becomes less likely. Anna mark carney there until the end of january. Bell from j. P. Morgan is still with us. Focus the hows focus is significant is it that Boris Johnson started the new parliament by saying i will. Ut into legislation mike i think it is not helpful. There is a removal of the nationalization corbyn risk. But also thinking that because boris has a majority coming he perhaps would be in position to return to the softer free trade agreement. That is not the case. I guess the latest news does not mean they could then legislate again for an extension if necessary but it does remove some of the certainty that i think people have started to price in on the back of this election result. Matt how much does it matter to ftse 100 companies. A lot of them are so international, they are just listed here. You have big bounce seen in the ftse 250 and the more domestically focused stocks look at the gap between the 250 and the ftse 100 has widened out quite materially. It does still matter the largecap as well. We are in a difficult position. We have seen a large amount of money flow out of u. K. Equities. Had there been continued likelihood we would see an extension which until this morning i think was most peoples best case, you wouldve seen quite a good bit of that money going out. But this news this morning reinjects uncertainty into the story. Pause. Iving investors let me ask you about the underlying economy in the u k and how optimistic you are. We spoke earlier about the week pmi data from parts of the eurozone. We also saw some gloomy pmi manufacturing data. Do you expect that to be driven by nervousness around the unpredictability of the election or is it temporary . Was the manufacturing data extraordinarily weak, the pmi component. It is not just a u. K. Story. Look at the European Data and the manufacturing data that everyone had been expecting to , and not just in germany we are clearly not seeing a bottoming in the manufacturing data that many had expected. Is that temporary . A lot of those surveys were taken before the latest news on trade. It is not just the brexit story but concerns around the tariffs coming in but that now seems unlikely given the phase one deal looks to be happening. We need to see these surveys pickup because people have been calling for a term for six months now and it still has not come. Matt more people are calling for that now. We will keep you around a little longer. Mike bell. He stays with us. Up next, we bring you the stocks on the move so far including you ileverever un with those stocks dropping. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. We are 22 minutes into the trading day right now. We have clocks everywhere. My watches a little fast. That does not matter because we are down a little bit. We want to look at some stock movers pulling on the stoxx 600. Movers todayhe big are those to the downside and one of the biggest decliners is unilever, down more than 5. 5 . They are lowering their growth for this year and next year. The Pressure Point seem to be south asia and north america and the changing taste of shoppers looking for something more niche. Bank of england coming out saying u. K. s biggest lenders can whether a financial crisis lloyds is under a lot of pressure. This has to do with what is going on with boeing, saffron is part of that supply chain. Boeing stopping the 737 production. A lot of strain on that supply chain. Matt Annmarie Hordern looking at some of the big movers. The Goldman Sachs asset manager thats all this years rally and equities and despite todays losses, it has been a big one things the market is too pessimistic on europes 2020 growth picture. Portfoliohe global for asiapacific is betting on a European Equity rally. Anna for more on that, we bring back in mike bell from j. P. Morgan Asset Management. Is this the year where they outperform . Mike im not sure. Rowlands inis Global Growth and the market is anticipating it, there is a good chance you could see european cyclicals rally in the way just discussed. It does need to happen. We are still focused on the employment components in the manufacturing surveys for both germany and exfrance and germany eurozone. Cutting jobs. To cross intoll the rest of the eurozone and eventually the service sector, then the cyclical recovery expected will not come to for which it. There are risks around it. And if we do see a reaccel eration in Global Growth, then i think the em will outperform in that scenario. Our suggestion is to have some em equities and to hedge it with more defensive assets. And european equities would not go into that bucket. ,nna let me ask about unilever when of the stocks we are focused on today. Are you concerned about consumer etaples not being as stabl as they were . Mike the big picture for me is about stocks priced for a consistent growth. I think this is a broader story. A lot of these stocks, particularly the more defensive ones are priced to deliver continued growth. If they miss sales growth, the stocks get punished pretty significantly. If you take some of the more cyclical growth sectors like tech, Consumer Discretionary which has been delivering solid growth for the last decade and are priced to continue to do so, if they begin to disappoint, matt the euro stoxx 600 is only priced at 14. 5 times earnings compared to 17 or 18 for u. S. Stocks. Do you see that split starting to narrow a little bit . The spread . Mike i dont think you will see a material rerating in valuations in europe or the u. S. The relative performance will be driven by earnings growth. Mike, thank you very much. Mike bell will continue the conversation with matt and i on Bloomberg Radio at 9 00 a. M. London time. This is bloomberg. Anna welcome back to the european open. 30 minutes into your trading day here in europe. Here to do a little bit of Christmas Shopping which it looks like investors are concerned not enough people will do. Take a look at the stoxx 600. Down about 0. 5 . Look at the big losers. Consumer companies are down. Personal Household Goods are the biggest loser on the day having to do with unilever. You also see retail down, travel and leisure down. There is concern about fewer shopping days this Holiday Season and the unilever sales warning and amazon saying it will ban fedex deliveries. A lot going on around Holiday Shopping moving the markets today. Boris johnson plans to change the law to guarantee the phrase is not extended. Warned it is highly unlikely negotiators will have enough time to complete a deal. The move sets up a possible new clip fed or he no deal brexit in a years time. And across india, tensions continuegh as protests against a controversial new citizen law. Anger has to five days of sometimes violent demonstrations across the country from new delhi to mumbai. The new bar the new law bars undocumented muslims from certain countries from seeking citizenship in india. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Anna thank you very much. My does talk about what is going on in the aviation sector. Boeing is to halt production on the 737 max next month. For hundred of the planes are in storage following a global flying band. The playmaker said it will prioritize the delivery of the stored aircraft and employees will continue with their related work or will be temporarily reassigned. Matt the problem is its suppliers its suppliers may not be able to make contingency plans for their workers. We were chatting during the break. I dont think people understand how huge this company is for the u. S. Economy. The 737 itself, each plane has about 400,000 parts that come from multiple suppliers. By virtue of the fact that these sometimessupply within hours because of that, there is a massive that it will have a massive impact on the u. S. Economy especially in the runup to the 2020 elections. Anna are they able to put these employees to other functions . At away, they have already said they will reassign those workers to other jobs or other production lines. 12,000 employees are at stake. There are other employees at the suppliers that may not be able to be reassigned. Matt and that is the issue. There are huge suppliers. We have a great function here at bloomberg. Splc. You can see General Electric and others a lot of European Companies as well. Rollsroyce for example. Asian Companies Like mitsubishi. So Many Companies that may not have the flexibility that boeing has for their employees. Spirit makes 52 airframes for boeing for the program. And spirit will have to reassign or look at how they can stop production. For the moment, they have said they have not decided whether to stop production of the airframes. Already boeing has an issue with storing planes. They have 400 aircraft they have already built. They have to reassign them and look for places to park these planes. Volume,of the large they would need a lot of parking space. Boeing said we will take a pause for the moment and see when the faa will bring this aircraft back into surface service. Anna is this something that airbus could take advantage of . Anticipated by many in the aviation sector. Is this something that airbus can make positive news from . Slump earliest production is 2024. Airbus cannot capitalize on this shift. Anna not very quickly anyway. Customers wait five years to get a plane. Matt we do see rollsroyce up and some of the other european suppliers. They are also suppliers for airbus. Does not supply engines for the 737 max. Matt that answers that question. Anna thank you very much. Is taking the most points off the stoxx 600 this morning after it lowered its sales Growth Outlook for the year. The economic slowdown in south asia is one factor. Ning us now is to do joining us now to discuss this erik. Youre seeing the new ceo that took over at the start of the year is backing away from his predecessor, paul pohlmans more ambitious Growth Outlook saying it was unrealistic. And investors are not liking that. Anna what is this being attributed to . Emergingmarket headwinds . There is a lot going on. Morninge release this they cite west africa, south asia, north america. Last quarter they cited slow tease sales across much of the developing world and slow ice cream sales in europe because the summer was not hot enough. That does not leave a lot of other markets where things are going well. That is a problem. Matt how important is the ice cream market . Unilever says the ice cream market share will row in the u. S. Is this a huge issue . They made a big deal out of the 4 million rebrand. This is a big business for them. They have ben jerrys and magnum. He sold its ice cream brand in the u. S. To a joint venture. Matt they have drumstick for example. It is big business for these consumer giants. Anna to what extent are we seeing these businesses challenged right changing consumer taste. Not just what they are tasting but the ability for companies to package it up and sell it globally. Consumers want everything to look like it is a small branch. Big companys a producing it. It has to look like it is coming from a niche company. Anna Companies Like unilever have been good about buying up these sorts of companies. The problem is you have to buy a lot of small grants to make up for the sluggish growth in one big branch. Anna thank you very much. Our consumer news editor for europe. Matt coming up, we bring you more on virgin money and other stock movers. Similar downgrades are being and barclays. The stocks have been volatile. This is bloomberg. Anna welcome back to the european open. 41 minutes into your trading day. And negative session. The ftse 100 fairly flat. Here is what you need to know today. The European Union has agreed on a landmark green finance regulation. The deal will the fine what is green and what is not. A fascinating conversation on this front. Implications on investors. Joining us now is our reporter from brussels. What is a socalled green taxonomy . Nerdy andds very technical. The European Union last night agreed to set out the framework to regulate. What is crucial is that they really want to set out the foundations to really define what is green and what is not and they want to do it in a way that could set a Global Benchmark for investment and sustainable space. If you put out regulation want to be able to get money from insurance and Pension Funds you have to look at the political context. The European Commission is determined to get ahead with this green deal and get it done in 100 days. This will determine what is Green Investment in europe. Matt what does this mean then for investors . Can they take what they here today or this week as gospel . Or will this be a moving target . Probably not this week. Early days. The details are still vague. I have heard they will probably wait for about two years until they get the final list and criteria set ins dont what it is significant for the investment community. What we often hear from those that want to invest in this space is they do not have enough data. It also the rules are not clear. What the eu is trying to do is set out the standard. We will not do it in a global way. We will give you a clear benchmark for grain investment. Eyes of green in the the eu, it will be green. Anna it seems there is a part of the decisionmaking to come down the road. In some circumstances, some nuclear and some gas will be considered green. Maria, thank you from brussels. Matt to our top stock stories. A lot moving. Let us go back to Annmarie Hordern. To thee a lot moving downside. A lot of bread for the big corporate movers. Virgin money down 5. 5 . Y were downgraded by bert by barclays and hsbc yesterday. We are starting to see fundamentals back in play for the u. K. Banking sector. They are part of the aerospace supply chain. A boeing supplier. The 737 weion for know what we halted in january. The supply chain is where the strain will be put. The 7ill boeing restart 37s. Anna thank you, Annmarie Hordern for those movers. This may explain why shares have soared 200 since its may ipo. Companymay be why the makes the top 50 in the bloomberg survey. You will see us be very aggressive there. We are aggressive in each market that we occupy. You will see us move with speed and exploit the first mover advantage that we have globally in terms of building the brand most closely associated with the plantbased movement. You can guess that we are very excited about that market and very active in our plans. Anna let us talk about chicken. I am kind of hungry. Test, in atlanta. It went gangbusters. How soon can you get into that market in a meaningful way . You will see some exciting things from us in the poultry space in 2020. I cannot mention the partner. We look at key platforms including beef, pork, and poultry. You are seeing the pressure around the poultry and pork industries. We have done a lot of work there. Matt i do wonder what you have learned along this very interesting year as a ceo and a leader of a company that really is about a lifestyle and who we are. Office toto go to an work on issues that are so important to me personally and to the world is a privilege. This year we were recognized by the markets for what we are doing. We dont believe that this is a shortlived trend. This is something that has very long legs to it. If you think about what we are doing, we are not suggesting that people do not eat meat. I grew up eating meat. The idea behind the company is to providing a better form of meat. To provide the meat that provides all of the delicious satiating experience that we have come to love. If you look at what the mobile phone did in relation to the landline, nobody had to denigrate the landmine and we dont think we have to denigrate meat protein. We just simply want to provide the consumer with a better choice. That was ethan brown, the ceo of beyond meat. Speaking about the plants to launch a poultry alternative. Anna i found it interesting to say that he wants to provide a better form of meat. Matt i love Fried Chicken as well. And is sodelicious nutritious and if he can provide that without having a chicken factory. Have you ever tried beyond meat . Anna reduce the meat consumption. Up next, the sterling honeymoon seems to be over. The pound has slumped more than 1 after Boris Johnson pledged to block brexit delay. We have more on that as well as how the markets are interpreting the story. That is next. This is bloomberg. Matt welcome back. This is bloomberg markets, the european open. An hour into the trading session and we are looking at drops across the board. Interesting because we had such gains in the asian indexes. And the ftse 100 is fairly flat. Matt and it is flat because of the drop in the pound. Two days ago it was trading for 135 and now we are down to the 131 handle. Anna the Prime Minister says he will change the law to guarantee there is no extension beyond 2020. He can now count on a parliamentary majority. Let us take a look at what is moving the market. Give us your thoughts richard on the slide in the pound this morning. I was joking with matt earlier come in the runup to the election we were asking how long it would be until the market moves on from the gains of the johnson victory to thinking about the uncertainties about the end of 2020. I think we have our answer now. It was tuesday. It has been a short honeymoon period for the pound after the short euphoria time we saw on friday. Everyone was feeling relieved that the possibility of a no deal brexit was off the table. The Withdrawal Agreement would the past quite easily because the tories have a huge majority. What Boris Johnson has done though is brought forward a lot of the anxiety that investors would phase in 2020 by making this announcement regarding no extension to the transition area. The pound has taken a strong head against the dollar and the euro. Of englandhe bank easing expectations have ratcheted higher. We were down to five basis points in pricing in terms of easing into next year on friday. That is back up to 15 which is where we were before the election. It is almost certainly on the this hasde, brought it forward. I think we are seeing the price action in the pound and the u. K. Rate space is reflecting that reality. Matt we are getting some certainty now certainty that if the negotiations are not done by the end of 2020, the u. K. Will crash out of the customs union. How low can we go with the pound in terms of cable and more importantly for me in terms of europound . We were talking about this at 93 and now we are down to 84. That ise shortterm, why we got the reaction we did on friday. There is some uncertainty. The Withdrawal Agreement will pass. We will not have a no deal brexit on january 31. The problem has always been that there is the end of next year deadline looming and would the u. K. Extent ask for an extension and the answer is no. The uncertainty that was frontloaded has now been pushed back a year so there is no change for businesses and households. What this could lead to is cable trading down to the mid 120 handle. And it does not look like something that will go away soon. It has been brought forward. People have to think about it now. 120s. Mid on richard, thank you. By 0. 5 x 600 is down today. Hit yesterday an intraday high in the stoxx 600. Anna and i are heading to radio now. Surveillance is next. This is bloomberg. European stocks tick lower after big rallies in the u. S. And asia. Another cliff edge. Sterling weakens after Boris Johnson says he will change the laws of brexit measures are not extended. Maker ane welcome to bloomberg surveillance. These are your markets