Meeting today. We are in brussels. The euro goes higher as the ecb forecasts are said to show more confidence on the economic outlook. For clues on extra stimulus at todays meeting. 6 00 a. M. In london. It is 7 00 a. M. In frankfurt. The two cities with the most amount of risk. Good morning to you. Normally, we talk about political crises. The irish version is what we have. Europe ripping up the rulebook and going for the playbook from johnson and cummings and prepared to take legal action against the u. K. It on seats the pound. Good morning. Annmarie i know you are on brexit watch. Im certainly waiting to see what we are going to hear from Christine Lagarde. Tos a very fine line she has walk. Does she want to exude confidence about the european recovery . At the same time make sure shes getting that support she thinks the economy needs . The challenge will be making sure she does not bid up investors for the price of the eurodollar. I want to take a look at whats going on in the markets. Asian equities seeing reprieve after the stocks we had yesterday in the United States. They are bidding higher. I put the dax futures up there because what we are waiting for today is we are. 09 away from the dax being flat on the year below 119. Lar we will dig deeper into that scoop we had yesterday out of brussels. 1. 29. To get more context on all of this this morning is the chief investment strategist at Northern Trust management. Think you so much for joining us this morning. Everyone has been so focused on the tech rally. The question i was wondering is do you think that this is retail led . I say that because we did not see that bid higher for treasuries which normally we do when we see the rotation from riskoff into havens. Certainly saw a lot of retail money basically chase the tech trade so it could very well be a lot of Retail Investors got a little spooked by the story regarding the option buying and they all of a sudden felt that may be a multiple uncertain Companies Like apple was a bit rich so i would not be surprised if there was a little profit taking from that group. Mind you, there is still a lot of money that has been made here today so for these people, maybe this is enough for them to now while we reassess and see how this story plays out. Manus its manus. That is what i wanted to get a sense from you. We have been looking at a whole variety of people through the week. We are in nosebleed territory. Goldman saying they want to throw their hat in the ring for attack. Sense when youre see the vix at elevated levels to scale back in terms of overall equity exposure and look perhaps for better opportunity . Buy the dip, that awful cliche. . S that what is at play wouter that is the dynamic a lot of people will have to wrap their head around. Is this a temporary spike in the vix . If you believe the economy will continue to recover and you believe the support both fiscal and monetary will stay in place, then you should buy the dip because you will have a buying opportunity at a more attractive level. If you believe may be the vix will stay higher for a longer time, then you need to start thinking about a new volatility regime and that would imply lower valuation levels for things like equity but also credit and high yields would need to be reassessed. A higher fixed level, higher level of volatility does mean a higher level of underlying risk. That is the question we are now facing. To be honest, we are still in the middle of that. We dont think its either or at the moment. We dont have enough evidence yet. We should be prepared for a prolonged period of higher volatility given the brexit elections and the u. S. China trade conflict right in front of us. Annmarie theres going to be more volatility as the weeks progress. I have a question about bonds. In a world where Central Banks rule, is it really safe to put your money in bonds . If not bonds, where do you search for safety . Wouter we have seen people search for safety and a couple of places. What dotion on bonds is you expect when it comes to inflation and curve steepening on the back of Inflation Expectations moving higher . Arehe moment, we feel they so much demand shortfall the inflationary threat is really quite limited. We are acknowledging that the inflation story in the future might get challenged by all the support coming through from the monetary and fiscal side. If i was a bond investor, i would expect the short end of the curve to stay angry because Central Banks will not fight rates anytime soon but the long end of the curve that is when inflationary expectations Start Playing a role. That is when i would focus my intentions on being more careful. You have unleashed the trashy inner bond broker in me of old. Lets go back to the volatility and how that translates into the highyield trade. They want to scale back ig, up on junk. Their bid if theres volatility coming towards us, could that unseat the rally that we have seen in high yields . Have a look at the gtv library. We have seen this movement down in spreads. Are we set for a rather unseating moment in credit . Wouter thats a very good question and it is one we are only just starting to grapple with. I dont want to be overconfident the in expressing definitive outcome here but what i do think is that with the volatility regime having shifted a bit over the last couple of weeks and we have all these volatility inducing events right in front of us for months to come, you could very reasonably expect volatility to stay high. Yes, if you are any sort of investor, you have to take that on board and think about what that would mean for fair value. From a highyield perspective, if you are in a higher volatility regime, you need to demand a higher spread. That would mean the trade we have been enjoying, we are overweight highyield. Is coming to an end. Trainsok, well, gravy come to shuddering stops. Ands with Annmarie Hordern myself. First word news. Laura wright is in london hq. Laura the e. U. Is considering legal action over the u. K. s intention to breach the brexit Withdrawal Agreement. That is according to a document seen by bloomberg. The initial analysis suggests it may be the case before the controversial plan is written into domestic law. The prime ministers threat to on the on the renege deal has got across the atlantic. Defendedump has comments in which he intentionally downplayed the severity of the coronavirus. In march, the president told bob woodward he played down concerns to avoid causing panic or price spikes. Joe biden said trump failed to do his job and is responsible for tens of thousands of deaths for not giving adequate warning about the dangers of the rhymers. Aultard are no asked arn asked them to pull out of the deal to buy tiffany. He wanted to call off the 16 billion dollar purchase. Tiffany accused lvmh of trying to leverage protests against Police Brutality and the covid19 pandemic to seek a lower price. They have denied exerting any kind of pressure. He said the french government requested a delay for reasons related to the trade dispute with the u. S. Barclays is considering replacing its u. S. Headquarters in times square. Sources say the bank is looking for half a million square feet of space. Before the pandemic, the development reshaped the west side, drawing Tech Companies through massive offers but offers leasing in new york has slumped with many working from home. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am laura wright. This is bloomberg. Annmarie. Manus thank you very much. The euro is on the edge. You brought this point up this morning. Would she tie inflation to the fx rate . That could be the end of that run. A change of a few pounds. Good morning. Annmarie good morning, menace. We are going to keep it there on the pound and look deeper as the u. K. As the e. U. Considers Boris Johnsons plans to breach the brexit door steel which has rattled leaders in brussels. We are in the belgian capital, next. This is bloomberg. Annmarie good morning. This is bloomberg daybreak europe. Manus cranny alongside me in dubai. The European Union is considering legal action against the United Kingdom over plans to breach the brexit Withdrawal Agreement. According to a document seen by bloomberg news, the e. U. Believes it may have a case even before the u. K. s internal market bill is written into domestic law. For more, maria tadeo joins us from brussels. What are the options the e. U. Now has and what are they exploring to do . Ofia that is a story out the terminal. Its a bloomberg scoop. What we are seeing here is that the e. U. Is already looking at those Legal Options if that bill is indeed voted through in the u. K. , which as you know, is highly controversial but would almost undo key elements in that exit part of the Withdrawal Agreement. Not was just approved a little less than a year ago and that should be factored in. The European Union always looked at that as legally binding trade and they always looked at that as almost an International Agreement that has to be respected no matter the outcome of the trade talks, and they are looking at potentially suing the u. K. If necessary and that would open up perhaps the room for some type of financial compensation but this is very early days. This is just exploring those options but it goes back to the theme we have been talking for this whole week, this idea that european officials have really been taken aback by the u. K. Pushing through this potential piece of legislation, undoing agreements that they still very ach see as fit and view as result of three years of negotiation that no matter what happens in the trade talks has to be respected. Always great to see you. How much of this is negotiating tactic . How much of it is real risk . Theink it is europe taking playbook and putting it right back at them. Theres many theories floating around today, whether this is just political noise or this is really heading and now into a nodeal, but one of those theories does suggest or point to the fact that this could be the u. K. In a very almost machiavellian but also very intentional way, just precipitating this crisis, hoping that that will trigger an intervention from e. U. Leaders. For weeks now, the u. K. Team has said that Michel Barnier is stuck in the negotiations and they need to see a bigger political push and this may get european leaders more involved into this. What i would say however is that this has triggered a lot of backlash here in europe. We have heard from the head of the european council, the head of the european commission, saying this is not a good basis of trust going into a negotiation. Negotiate in good faith when our counterpart is not doing so . Thats almost the mood here. Definitely become much more aggressive over the past three or four days. Thank you very much. Lets see. We will go to the wire on these negotiations, tracking the e. U. U. K. Negotiations. Our guest host this morning is from Northern Trust, wouter sturkenboom. Many battles to be fought globally, whether on growth or inflation or indeed on the brexit front for europe. Lets hone in on the economic side because you have your stagflation theory. A headwind of stagflation does Christine Lagarde phase in your assessment face in your assessment . Shes facing what i would call a modest challenge for this upcoming meeting. Of course, we saw the cpi dip into negative territory so we are officially in deflation and we have seen a relatively strong euro. Just causing incremental this Inflationary Pressure as well dis Inflationary Pressure as well. She needs to acknowledge shes largely tapped out as far as her room to maneuver. She can push Interest Rates further but what will that do from this point on . Doing more qe is kind of the same story. The only thing i would say she still has in her disposal that is interesting, potentially very powerful, is in lowering their rates or sweetening the terms a bit more to incentivize banks even more than they already are. They already are massively incentivized to extend credit and thereby sustain recovery and get inflation higher. Annmarie i know we are going to dig into what lagarde has coming up today. I want to ask you about brexit because this morning and over the past few days, you have just in strategist all over just seen strategists all over the map. Some say no deal. We could be down the lowest in 35 years while theres also a lot of brexit fatigue in the market. What is your base case for cable . Wouter we are a little bit on the cautious side of that so we do not have a big expectation in either direction. We think the cable is a bit range bound here depending on the scenarios for gold. We had the 125135 range. We have had that for a while. The question is to what extent are the economic constraints that the u. K. s facing in its negotiations with the e. U. Proved to be binding or not . Clearly, the actions of the u. K. Government are more and more pointing in the direction that they do not feel like that constraint is binding. They are willing to take the pain if it were to come to pass so that certainly puts that lower end of the range, the one to five, more clearly in view than the upper end, which was really the better case outcome in which, where the u. K. And the e. U. Would find a deal so i would say the lowend is where we are currently focusing our attention from here. Greatly think the other underserved issue is this. I think it is all over at the end of this year. The reality is that this dislocation of risk is going to ensue for a very long time over a number of matters. And theres a deep discount on u. K. Assets relative to global equities. At what juncture do you think that that gap narrows . Wouter thats a really good question. I think what people need to realize is that when it comes to the relationship between the u. K. And the e. U. , there will always be one, even if there is a nodeal exit. Basically, the next day, the two parties need to come together and start thinking about how they want to work together, how they want to live together, how they want to maintain the supply chains that are crossing the all directions. This will not go away. Theres no such thing as a clean break. That does not exist. There will always be a relationship that needs to be maintained and negotiated so the very next day, we need to get back to the negotiating table. I think when it comes to u. K. Assets, its really all about the endpoint of that final negotiation, whether its with a nodeal or the very next day, the way you do have a deal. If that relationship does not get maintained properly, i think that this will stay in place. If they start finding ways perhaps under new leadership, i think it will all dissipate. Sorry. Annmarie wouter sturkenboom, thank you so much. Hes from Northern TrustAsset Management. Coming up, from strength to strength, ipos in china and hong kong have had a solid year despite the pandemic. More on that. This is bloomberg. Manus this is bloomberg daybreak europe. I manus cranny in dubai. Annmarie hordern alongside me in london. The mood music would be the key at todays ecb decision. On holds likely to stay but officials will have to confront a slowdown in the euro areas recovery as well as stronger euro currency. It has gained yesterday after sources told bloomberg that policymakers have become more confident. Potentially reducing the need for more stimulus. Madness, since march the ecbs bond buying has averaged 22 billion euros a week under the pandemic emergency purchase program. Analysis by Bloomberg Economics expects purchases to keep this pace until you end of the year before decrease in the first half of 2021. President lagarde will be quizzed in her News Conference on market expectations. From northernboom trust Asset Management is still with us. Said thatis what she matters. Nobody is expecting major policy changes today but she has this really fine line to walk. Dovish enough so people think more stimulus is coming while at the same time, she has this challenge of making sure the euro does not continue to rise. What do you think she says in terms of walking this fine tight rope . Wouter you have described it just about perfectly. I really like manuss description of the mood music that will be so important because it is all about how she exudes that confidence. The ecb is doing the right things. The recovery is on track, but it does not need to do more right now. If necessary, it will be ready to do so. They are willing to put those three things into one performance, if you can call it that, and exude that confidence. That is what she will be focusing on, exuding confidence both in the quality of the recovery as well as the fact that ecb, if necessary, still has the tools available to act, and how she will do that will be focused on q a session where shes going to take those eadon, andad on h basically be a strong person in the room and exude confidence. Manus i just wonder, could this be one of those days where its esque, to do whatever it takes. Lagarde is forthright, straight to the point. What does she need to do to frighten the pants off an fx trader today . More loans, the hint of deeper rate cuts to come, hint of more q. Week . Qe . Ore q. Week more what would make them shudder and run . Centricthat would be qe to me. At the moment, it is not very credible. Its much more focused on the economic recovery. That would be potentially helpful. Be a forceful statement from lagarde that shes unhappy with the rise in the euro which is normally never something she would say but thats probably what it would take. The Exchange Rate is too strong. We are going to do more qe to counter it. Annmarie certainly, i want to hear what she does, and the fact that the fed kind of went ahead of them. Does she follow the fed . Are they on the back foot . Wouter sturkenboom, thank you so much for that. Hes from Northern TrustAsset Management. We will bring you, as i have been saying, the latest on todays ecb meeting with full coverage of the policy decision at 12 45 p. M. London time, followed by president Christine Lagardes News Conference at 1 30 p. M. London time as well. Coming up, as we have been saying, strength in ipos in china and hong kong, they have had a solid year despite the pandemic, bucking the trend. We will have more on that, next. This is bloomberg. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. Annmarie good morning. From bloombergs European Headquarters in the city of london, i am Annmarie Hordern. These are todays top stories. Healthy correction or fundamentals pointing to more selling . Buyingrs seem unfazed the dip. The e. U. Strikes back. Brussels sees a case for legal action against the u. K. Over Boris Johnsons plan to breach the Withdrawal Agreement. Walking a fine line, how does Christine Lagarde without talking up the euro . Good morning, manus. That is what we are focused on of course today as we await that ecb meeting and News Conference from Christine Lagarde. How does she not talk up euro while showing confidence in the european recovery but also dovishness in the sense that shes going to think the economy still means that support . We have a credible bloomberg scoop overnight which is talking about the fact that some are seeing more confidence in their forecast in the European Union. We have another bloomberg scoop overnight about brexit. I know you are interested in this because you have been talking to me all morning about splendid isolationism. Manus you learn something every day when you come to school. That is what i say. The whole rulebook really is that johnson and cummings put together, i would say europe is reaching into that toolkit and saying we may take legal action. They need to see that through. This goes back to yes, i will bore you to death. This goes back to a period of time in british politics, 1885 to 1902. It was a period of splendid isolation. Is that where we are headed . Lets have a look at the markets. You came to school, you learn something new. Go google it. The s p 500 gives a little bit back. J. P. Morgan says its not done. We are back in the green. We spent pretty much daybreak middle east on the downside. The nasdaq had its best turnaround since november. Sorry, since april of this year. People have essentially been afraid to buy the debt, reassess, and five. The bullish trend remains. Have a look at the rest of the monkeys because its the fx risk you really want to focus on today. All agility dropped back but we did bank it above the 30 level which tells me to get ready for a new paradigm according to our guest host this morning, volatility. Crude down by. 2 . Mayon the nod as the e. U. Threaten legal action against the u. K. On a bad brexit outcome. The answer is 1. 14. The world grapples with coronavirus and the outbreak in china and hong kong has had an impact across the ipo markets. All remain vibrant despite of the anxiety. Companies raised 600 billion dollars. 60 billion, buying new share same period in 2019 p at hong kong is becoming an increasingly popular listing venue amid u. S. China tensions while demand from Retail Investors has been surging as apple liquidity encouraged banks to lend. Largest chinas Restaurant Company operates kfc, pizza hut, and taco bell brands. They could see a recovery ahead. Yum chinas ceo told bloomberg the Company Plans to open 850 stores this year, and chinau. S. Tensions are not a big concern for their business. We have had it for 33 years so we are seeing a lot of ups and downs and market movements, but i think its fair to say that after 33 years, we have a very exciting business here, and certainly, we are still seeing huge opportunity going forward. I want to ask about the timing of the ipo. We have and group coming out as up as ant group coming well. Theres a concern of a liquidity squeeze in hong kong. Are you challenged by the timing . Joey we feel like this year is the right time to do it. Because the Hong Kong Ipo market is doing incredibly well. Theyong kong investors, know the business in china a lot than in other places, and the listing also allows us to be to ourto our customer, community, so you know, our view is very longterm, so whether this year or later, i think the most important thing is to feel the timing is right, and there you go. You are incredibly excited about the milestone. The rationale for the secondary listing as being closer to consumers and investors in this part of the world. Joey absolutely. Surely, there must have been some discussion at the board level about the noises we have heard in washington about threatening to delist chinese companies. This must be part of the hedge for you. Joey when we can see such a big company, the most important focus, we always look at our employees, customers, shareholder, and communities. Kind ofe many factors beyond our control, and as we always aboard, take things into the holistic view, and we will consider what is the best to do. About who areear the Key Stakeholders here and definitely see our employees and our customers, so there we are. We make it. You know, you can see my team is so excited. Thats the most important thing. 2. 2 billion u. S. Dollars. How do you prioritize how you put that money into play . Joey theres a few areas we are going to focus on. Is growth. China,in 1400 cities in but theres still another 800 cities in china that can see theres not even one. Pizza hut, we are only in 500 cities in china. Theres 1700 cities in china where we do not have a pizza hut store. Most doors are one area. In terms of the digital investments, pricing investments, to view the infrastructure, to grow that, thats the second focus, and we term,e that in the long the opportunities are fading. You hit your 10,000 mark earlier this year. You had a target of an additional 800 to 850 by the end of 2020. Are you still on target . The this is still sort of aspiration we have for this year. We have not changed that despite i, youid19 because, as know, probably mentioned many times before, we are here for the longterm, and we see the longterm trend is still very exciting. We are not changing that aspiration of 850 for this year. Annmarie that was joey wat. From northernboom trust Asset Management is still with us. I just want to get your take on china. Theres this idea of chinese exceptionalism given the fact we have seen a pretty strong recovery in china compared to the rest of the world. Our Bloomberg Economics team, they say that data is set to show theres going to be legs in this recovery. Is this solely in chinese story or are we going to start to see this spread across aipac . Wouter you would normally expect to leave some sort of spread because china is part of the whole asia pac economy. Under the manner of goods, you would expect that to percolate out. At the same time, when we started trading through the chinese front, its the exports that are doing better than the imports, so it still seems its a little bit more domestic bitsed and its a little more driven by domestic policies than by regional policies so at the moment, i would say china is still in the lead, also regionally, but as time goes by, we should expect that to positively impact the region as well. Manus wouter sturkenboom, thank you so much, Northern TrustAsset Management, our guest host this morning stays with us. Up thosef course pick trains of thought through the morning. Laura wright had your first word news. Is considering legal action over the u. K. s intention to breach the brexit Withdrawal Agreement according to a document seen by bloomberg. The initial analysis suggests it may have a case even before Boris Johnsons controversial plan is written into domestic law. The prime ministers threat to renege on the deal has got prompted a warning from across the atlantic. Nancy pelosi said they would be absolutely no chance of a trade agreement with the u. S. If johnsons actions threaten to in northern ireland. Donald trump has defended comments in which he intentionally downplayed the severity of the coronavirus. In march, the president told bob woodward he played down concerns to avoid causing panic or price spikes. Democratic president ial nominee joe biden said trump failed to do his job and is responsible for tens of thousands of deaths for not giving adequate warning about the dangers of the virus. The worlds animal population has fallen by more than two thirds in the last 50 years 4000ding to a study of species by a conservation group. It found the biggest drops had occurred in latin america and the caribbean. The population fell by 94 . Agriculture and landuse change were a key driver as Natural Habitats were converted into farmland but Climate Change has also been a factor. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Annmarie thank you so much. Coming up, the worlds biggest miner announces a new environmental strategy. We will look at how the corporate race against Climate Change is heating up, next. This is bloomberg. Annmarie good morning. This is bloomberg daybreak europe. I am Annmarie Hordern in london with manus cranny in dubai. Miners are among the worlds biggest Greenhouse Gas emitters but some industries are hoping to change that. The hp Group Unveils a new plan to introduce its carbon impacted today as well as it could be too late. We house gas emissions are set to fall the most in modern history this year, 20 20 could be the worlds hottest year yet. Could be the worlds hottest year yet. Through this piece. Its quite a divergence. Greenhouse gas and missions are actually coming down. The steepest drop we have seen in a while, yet the world could be this year, it could heat up the most. Even thoughnow that gas emissions have fallen by a record this year, thats only 5 decline, so we are still pumping out 95 of the Greenhouse Gases we pumped out last year, and what matters to heating up the planet is every ton of Carbon Dioxide we put into the atmosphere, and we have been putting a lot of those since the Industrial Revolution began. Its not a surprise we are seeing the planet it up. We will continue to see the planet heat up until we stop admitting Carbon Dioxide altogether. Manus of course, you make the point that the admissions in no way are compatible with what was said in the 2015 paris climate agreement, so which forms have increased . Where are you seeing the increase coming through from . Akshat the most visible ways in which we can see it is currently in california, where recordbreaking wildfires have happened, and these wildfires are breaking records and other parts of the world. Earlier in the summer, we saw them in siberia. In january, we saw them in australia. But wildfire images stick with us. Heating also shows up in many insidious ways. Earlier this summer, we had a diesel spill in the arctic region, and that was caused because the permanent ice on which business and infrastructure was built is melting away, causing that infrastructure to fall apart and cause environmental harm in the process. We think of the paris climate agreement, which is set this goal which seems small, which is s keep forming on average. The average is a lot because heating will happen in extreme scenarios. In the summer, we experienced a heat wave in the middle east where temperatures reached 53 degrees celsius and led to the deaths of many people. Manus indeed. Would recommend everybody hop onto the bloomberg terminal and have a look at that. Akshat rathi joining Annmarie Hordern and myself. Yes shes has been a hot topic for a number of years with the past decade dominated by talk of importance, of environmental issues, as we have just been discussing. 2020 has ushered in the rise of looking atal issues, the pandemic, and then blms protests. Companies with a better grasp on have better share price gains. The head of sustainability at schroders led the team conducting the research he joins us now. Great to have you with us right now. Thank you for joining us. I want to get a sense of how do corporations and companies prove s you with veracity that the is scalable in the organization and real . Good morning. Good morning. Thanks for having me. It has been a really important question over the last few months. As you say, its been something we focused on very heavily. There is not a single answer to the question in terms of how companies prove that. In the end, it comes down i think to really trying to understand how the policies understanding what are they actually doing in practice . One of the areas i would highlight, the number of companies we have spoken to, the national grid, one example of many. Understanding how they went out around Mental Health to ensure the people working that company were properly trained. They were removing unnecessary pressures. Its that sort of response which i think indicates companies that are thinking about the implications of the crisis for their workforce and are more farsighted. Annmarie your Research Also talks about how saints will outperform sinners. What are you looking for when you look for saints . Andrew thats an interesting piece of work. One of the interesting things that unfolded in particular, during the early phases of the crisis, was this was a live event unfolding and what you saw was the Way Companies responded was very much a reflection of their instincts and is a reflection they did not have time to strategize and think about what does the world want to hear . The Way Companies responded earlier is sustainability in action. This was not a reporting question. This was how are Companies Responding when faced with a challenge . You saw some companies who instinctively battened up the hatches, whose instinctive response was to cut costs, lay off workers, furlough workers as quickly as possible and effectively to battened down the hatches. You had companies to help be part of the solution, help ensure that we are going to protect workers and our stakeholders . The distinction between those two groups was marked in terms of the way the public responded and an terms of the way that share prices responded. So one of the things we looked at manus Andrew Andrew sorry. Manus finish your thought. One of the key things you looked at. What is the key thing . Andrew the way the companies responded, so looking at how companies responded in terms of cutting workers, taking government bailouts, you saw that those companies that responded more responsibly, more farsighted lee, were typically rewarded by the market. Look at thiswe period of time, covid, one could say it may be exposed to some of the blind spots in esg. Is that fair or do you think its actually, you know, it has delivered some opportunity to really investigate the esg with incorporates . Andrew certainly, much more towards the latter. , we are stillg refining, understanding, building a better picture. Having said that, if you look at the way the sustainable funds have performed over the last few months, the level of interest in the topic, i think what it has really done more than anything else has galvanized peoples understanding that sustainability is not just in the real world. Many of the things we are talking about with cobit are the same things weve been talking about for years in terms of Climate Change, labor force protection, inequality, and what it has done has heightened and focused attention on the broader topix that sustainability have tended to focus on an accelerated that agenda. Annmarie i feel like because of covid, the s has become such a big issue but we just heard about how we have a missions coming down but still, it might the hottest year on record. Do you find that the e is starting to wane . Investor activism about Climate Change, is that on the wane now . How do you hold all of these together in a company . Andrew esg is a very important topic. One of the interesting things through this crisis, when you go back and compare it it has been focused on Climate Change. It has remained very strong. You are continuing to see policymakers, continuing to see clients, investors, and managers focusing on Climate Change. I would not say it has increased but we have certainly seen it hold strong through the crisis, and that has been interesting because again, if we go back a decade, people, effectively everything other than the immediate problem, tended to get dismissed a little bit. I think you still do have that momentum, that focus. You look at what the e. U. Has done around the e. U. Green deal and its pointing to the fact that this may be the point at which the way the governments response to the crisis could be the point that really galvanizes that change around decarbonization and tackling the climate challenge that could drive real and sustained change to meet the commitments made in paris. Annmarie andrew howard, this topic is not going away, especially as we have two diverging strategies towards Climate Change in the United States and head of the u. S. Election. Andrew howard, global head of Sustainable Investment at schroders. You can catch more of what we discussed with andy howard and the special diversity in the special diversity issue of our magazine. The e. U. Considers suing the United Kingdom. We talk about this story, next. Is this going to be a nasty divorce . This is bloomberg. Manus bloomberg daybreak europe. Its it is bloomberg daybreak europe. Ground zero for risk is going to be in the currency board for me. Run on the dollar is a the downside overrun and overextended . It is what lagarde says in regards to the euro. Possibly inflation and cable back above the 1. 30 line as the e. U. Threatens to sue the u. K. Annmarie anything she says today about the euro needs to be in the lens of inflation. I want to bring up a point about the dax. I know anna and matt are going to focus on that as well. We are. 09 away from the dax, erasing all the losses for the year. Its pretty astonishing when you look at it against the ftse, which is 20 down your to date and of course, we see in the u. S. , they really erased all their losses. Can germany you it today . Thats the question im asking. Can germany do it today . Thats the question im asking. Anna good morning. Welcome to Bloomberg Markets european open. Londonna edwards in alongside matt miller in berlin. Matt today, the markets say that did not take long. A swing in sentiment sees a big gain for stocks, which looked set to continue this morning. The cash trade is one hour away. Lets get your top headlines from the bloomberg terminal. Tech turnaroun