John, a little lift in bonds. Offer those ecb headlines largely expected. Jonathan a left in equity futures as well. Not sure it is related to that decision. 3 . Ive about maybe the success rate later will be defined by one currency pair, eurodollar right now at session highs. Tom euro strength getting up near the 120 level. We have lots to talk about, we welcome all of you worldwide, across this nation with a number of themes, particularly in the markets. We are going to get to equities and derivatives in a moment. On the nasdaq, weve got to go into this. The response on twitter yesterday was on fire. The premier league. Theyve all done well as the mlb struggles towards a bubble. The interest is, Team Surveillance is riveted by the opening of the premier league season. Waythan she is making her on her decision on who her team is. Lisa, are you getting enough suggestions . Are you happy with what you are deciding . Lisa i getting a lot of suggestions. I am leaning toward a team. I am taking all aspects into consideration. In particular, even the fact that my household has a proclivity toward the mets. I like teams that spend a lot of money, lose a lot. Tom lord oneill emailing in u would being man the way to go. Jonathan duke emailed in the last hour and said arsenal. Shes got a big decision. Tom it is great to see premier league back again. They have done a better than anyone. Markets, the equity this pandemic. It clouds everything, including the woodwardtrump flap in washington. It affects or johnsons life. Barry eichengreen writing in project syndicate that now is the important time for this covid virus, versus what we saw in the spring. Jonathan going into flu season its going to be really difficult. Outrage in the United Kingdom about the inconsistency of the policies coming out of this government. The new one is that you can limit gatherings to only six people. A lot of people thinking about christmas. Which relatives do you tell cant be at the party . [laughter] you can laugh about it and its a great excuse, but its serious. Today,ages of newspapers is christmas canceled . Tom got to admit, that took me back. Overe so proud of our Team Labor Day weekend working on the storm in the equity market. We have been doing that with a mix of strategist and those with derivatives. Mandy xu joins us. Is it played out from the excesses of august . Mandy we will see. All eyes on tact. Tech. When everyone is talking about is the dislocation we are seeing in tact. What stands out is two things. One is the extreme levels we are seeing. Ach are currently trading at record high relative to the broader market. That is true whether you are looking at the index level or even looking at the single stock level. As a group there implied volatility is higher now than it was in the Fourth Quarter of 2018, which was a period in the market sold off 20 , driven by tech. Spikecond thing is, this we have seen recently has not really come from the last week and we had the selloff as you would expect. Most of that search in volatility has actually come from the two weeks prior when the market was particularly when tech was going up. That is quite unusual. We saw a spot up dynamic in tachy. In terms of what is driving it, i would say two things. One is, on the way up we have seen for the second, which is gotten less attention, they havent really performed in the selloff. We havent seen any demand for Downside Protection. People are very comfortable with what we are seeing. Ie most consistent message have been getting is, this might be the most anticipated, expected pullback we have ever gotten. There has not been a sense of panic in the market, despite some of the big moves we have seen in tachy. Jonathan what does that tell you . Mandy right now what it means is investors are viewing this as a positioning cleanup in tachy. Some of the access we have seen is getting taken out. They are not viewing this as a broader macro selloff. Two things stand out. Volatility and equities in recent days have not spilled over into other asset classes. Lower. Her flat or the second thing is, within the equity market what stands out as correlations are very muted. Keep anone metric to eye on if you want to know what this is a macro selloff or a sector specific idiosyncratic selloff. ,f you look at s p correlation they are trading around 30 . Put that in perspective. In june correlations were in excess of 80 . Markets are saying, this is not a macro selloff, it is tech specific. Doesnt mean it cannot turn macro. We think there are a couple of macro coming up that can Downside Risk to the markets. Surrounding ongoing stimulus talks and the election. Right now the way the market is trading and pricing into the derivative market is still saying this is very much about tech positioning. Lisa mandy, you brought up the ongoing fiscal talks. What could happen with that that could disrupt markets, given the fact that it looks less likely something will get through. A lot of strategist have said that is priced in the. Mandy i would say the opposite. The consensus is that something will get done. That is why you havent seen a material pullback and make the broader s p. To meeen it in tach, but i think the investor consensus andomething might come late something will get done. To me the risk is if it does not get done. I think there were a couple of headlines saying the public ands dont expect any time any kind of stimulus bill. That is a risk. , weerms of upcoming data will see how much impact that has on consumption. Tom lisa emailed in earlier. Thanks for watching. She said, in gods name is that . Lisa we werent going to do this. Tom forget about the dampening function. Are we going to regress to the mean or are we going to go to the mean mean . Where you go beyond any kind of regression you have got . He saying cannot be a big selloff . Can it be a big selloff . Biased to the is downside. But we have been recommending rest of the for the year is to look at Downside Protection strategies that take advantage of dislocations we are seeing in the bull market. Particularly in the s p what stands out is downside skew. Theirn advantage of that structures where you buy one put and sell a further part put. That is what we have been recommending. Markets are still near alltime highs. Take advantage of dislocations that give you some Downside Protection. Tom i think this is great. We have mandy talking about skew. Jonathan mandy, thank you for tolerating us. Mandy xu, credit suisse. I dont know how long i have been doing this program now. Maybe too long, but the amount of times i have had to say thank you for tolerating us. Tom, you are the only person on the planet that can say something, i get up, and nobody on wall street knows if it is real or not. Truly, the great derivative expert at bloomberg, who invented so much of our terminal functions. This is really important. It is about momentum. Regress to the mean. We have the specter where everybody is happy, then you go back to that at some point, some level, or do you blow right through it . When was the last time we ,xperienced a sustained sixmonth, 12month difficulty in the market . It was a long time ago. Jonathan lisas best friend sorted that out, didnt they . Central bankers. Sarcastic,lightly lisa. Im well aware they are not your best friends. Maybe that was the good news. They stepped in and cap financial conditions loose. I think but it has done and we have gone back to the story so many times if your objective is to divorce financial conditions from underlying fundamentals, you are going to see a widening spread between main street and wall street. You have to acknowledge that some societal tension develop. One thing i havent heard enough of from Central Banks is an acknowledgment of that. That that is happening. Tom this is so important. What this comes down to is simple. When you hear all of this fancy mumbojumbo like llama, what that means for the average person more about their Retirement Plan means instability. That is that lack of trust you are talking about. Jonathan tom, if you are lucky to have a Retirement Plan. And isnt that the problem . We talk about the 401 k s and how equities have recovered. So many people do not have a retirement land. Tom 70 . Jonathan if youve got no skin in this game, you are doing ok. Financial assets of done wonderful. What about everyone else . What about the people that do not have money in this market . From new york and london, this is bloomberg surveillance. Ritika im ritika gupta. In beirut a huge fire has broken out at the port a little more than a month after a massive explosion there. The Lebanese Army said the fire was at a warehouse where oil and tires are stored. Last months explosion killed more than 190 people and damaged thousands of buildings in the lebanese capital. Jp morgan has found that some employees improperly received Coronavirus Relief funds intended for american businesses. Bloomberg learned the bank noted suspicious amounts of money have been deposited into workers checking accounts. Some employees have been fired. Jp morgan is not commenting. Atedance is likely to miss deadline this month for the sale of tiktok u. S. Operations. Chinese regulations have complicated negotiations with the bidders, microsoft and oracle. A review will take time. Wildfires in Northern California have transformed the skies over san francisco. During daylight there was only a dark orange glow, more than two dozen major fires are burning in the state. One has covered carved a 25 mile path of destruction through foothills. Least three people were killed yesterday. 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. Im ritika gupta. This is bloomberg. Over the past couple of quarters it really doesnt matter. It will start to matter when we learn about the growth trajectory. Henry, greatt was to catch up with him over the past 24 hours. When will it matter . , 2021. Ooking for q1 get the price action. Equities all over the place in the last week. Down aggressively, bounce back again. About. 25 . Negative treasuries unchanged. About 70 basis points. Claims, 12 minutes away as well. U. S. Data, before we get that News Conference we will break down the economic data. Tom im so glad you brought that up. I have completely forgotten. We see claims, and that is an important data point as well. We want to get to this important interview. Fidelityon family owns and they have always done inspired hiring to bring in the troops for the boston bread. They did that with bedding slotnick off, who is flooding exotic cough vadim zlotnikov. He joins us now with fidelity, their institutional Asset Management president. The rules have changed. Everybodyas lifted, else has lifted. I want you to discuss the overtrading disease we have right now. Are you and fidelity facilitating an overtrading disease that will lead to losses . Vladim fidelity has always been about longterm. Of know as well as i do, 90 the investment outcomes comes from the underlying Product Design, not from the trading. The emphasis has always been on making sure you have the appropriate product is Product Design to achieve investment goals. Fidelityour heritage, is at a mandate to be on prospectus. What is working right now in terms of total return . Narrow on perspective investment or a more broader tone . Vladim the last 10 years have been about a very narrow market. 6040 product that has emphasized u. S. Equity has delivered strong results. The key issue is, is this going to change . We believe it will. There are a number of drivers that are conspiring to argue for significantly greater degree of diversification. That is going to be a critical decision. Clear, i am not speaking on behalf of fidelity but the Economic Research team that developed the paper. Jonathan to build on that a little bit, the move away from 6040. It is the 40 that has gotten a lot of attention. Can you speak to that . Vladim absolutely. If the premises we have is that, you want to invest on the basis of something that is likely about the future. One thing that is very likely is that the levels of that in the economy relative to gdp are going to continue to escalate. Demographics, policy, everything is conspiring to make it happen. The issue is and this is where the big question is is that going to drive inflation . We believe it will. That is a huge departure from where we have been. Not only will it drive inflation, it will also alter the type of assets that are likely to outperform in that environment. Lisa what is likely to outperform . Vladim there are a number of things. If you look back before 2003, luxury goods had the same inflation as gpi. , if you remember the aspirational consumer, using your house is a checking account, all of those cliches drove massive inflation in luxury goods. Future inflation is going to be somewhat driven by the policy. For example, to the extent we wealthitics aimed at redistribution, many of the areas that high that have high elasticity are likely to see inflation. They are undervalued and we do think some of those could outperform over a long term. This is not a one year forecast. Tom this will be a question for you. When we read about the gamma w ell, when we read about fancy derivative strategies, it destroys trust on the street. Add we regain the trust on the street if everybody is trying to out do soft bank of japan . Vladim there will always be investors interested in shorter Horizon Trading that believe they might have a point of view on things like gamma or delta. That is a relatively small minority. Significanttion of liquidity we have seen in the market as well, as well as low Interest Rates. There is a propensity to try to seek out incremental investment. I want to keep coming back to the point. If you believe that 8590 of your outcome is about Product Design, that is where people should spend 8590 of their time. Tom how does will daniel do it . Has is the message that made that fund do that for all this years . Vladim hard work and natural talent. That is a generally good recipe for success. He has done a remarkable job. His 30th year at fidelity this year. It has been a remarkable run. Tom i want you to take us back to george and jeff and the rest of them, who from time to time would make bets in the bond markets. Bigyour equity guys making bets on fixed income or is that in the past . Vladim i think that is mostly in the past. Within the group that i run, which is what i am most familiar with, we dont do that, no. It is mostly multiasset products, balance products, that are aimed at satisfying particular regulatory requirement, particular tax requirement. Jonathan fantastic to catch up. Fidelitytnikov there, president. Allow me to lift the lid on this program. In a commercial break tom will speak to a guest and has the charts from 20 years ago memorized and wheels off managers and ask the person if they remember that person . Can you just buy the book . Tom no, i cant write a book. We talked about it. One of the mayors of new york said no, not going to write a book. Jonathan are you going to tell us which mayor . Tom not going to happen. Never going to happen. Jonathan tom, i would read the book. I will do what you do. You get the book, the open it up, pick a random page, pretend you have read the whole thing. Equity futures off the lows this morning. From london and new york im not joking this is bloomberg surveillance. Tom i got up on the wrong side of bed. [laughter] look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. If i could, baby id 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. Jonathan live in london and new york, this is bloomberg surveillance. A couple of things on the agenda. We will get you initial jobless claims in america and then we will cross over to frankfurt, germany to catch up with Christine Lagarde as that press conference commences. We need to get to jobless claims in america. To do that we get numbers from bloombergs michael mckee. Athael we are looking nonseasonally adjusted claims of 857,000, up from 837 thousand the week before. Abouts claims rise by 20,000. We are using on adjusted numbers because they change the way they did the calculation of seasonal factors for the headline numbers. Headline numbers come in 884,000. Exactly what it was last week. No change in the adjusted numbers, but the nonseasonally adjusted numbers rise by more than 20,000. Pandemic assistance, we have to keep watching this one because this is the freelancers. 839,000. That is a change of 100,000 higher. Seeing a rise in unemployment claims as the month of august goes on and into september. This is the headline number for the week of september 5. The pandemic number for the week of september 5. The number the total number of people getting claims 29 , an increase of 380,000. We are seeing a big increase in initial jobless claims. Tom the 30 year bond up two basis points. Futures are negative. Data, i go to the the Economic Policy institute, who minces no words. Layer onhe data, and the pandemic assistance as well. When you do that, what do you see . Michael what you see is we are seeing more and more people file claims. The interesting thing about the pandemic number is it is so big and still rising. It was pointed out this morning to me that california is responsible for about half of all the pandemic emergency. Ssistance you have to wonder if there is something wrong with californias reporting system or if that many people are out of work. It is true that in california not only did we have a spike in covid, but we got terrible fires closing down businesses and burning up entire towns. There is probably a reason for some of those additional claims. Some economists have suggested that around the country we have seen fraud in the Unemployment Insurance filings because of how old the Computer Systems are. That is something that will have to be looked into. We want to also pass along ppi. S out and it is up. 3 the core is up. 4 . Final demand for services rose. 5 . That is a fairly large increase, the same as it was in august. Margins for final demand trade services jonathan great to catch up. Great work as always. We have a lot of news all at once. 7 . Dollar off a green light from the European Central bank saying there is no need to overreact to euro gains. We will wait for that News Conference. Will beginnference shortly. Typically i would head straight to frankfurt. There is Important News from citigroup. Switzerland we sat down with if you would be proud stepping aside and allowing the first female ceo. The ceo of Michael CorbatBank Planning to retire in february 2021, selecting jane fraser to replace him. Will not be a surprise to many people is jane fraser. Many people believe this is the person who would take over for Michael Corbat. There it is in print. Tom this is a real change. Michael corbat at 60 years old is rather young. He has a legitimate football player. He is one of the few guys in College Sports that was quite good at harvard years ago. Off of corbat coming in the train wreck of 2009, the reverse split citigroup went through. Jane fraser out of scotland and out of cambridge and out of mckinseys seasoned for her age. Jonathan a strong historic day for wall street and much more coverage ahead. We cross over to a News Conference with ecb president lagarde with euro at session highs of 1. 1818. Here is the president of the european bank. Pres. Legarde we intend to continue reinvesting in full the principal payments from maturing securities purchased under the app for an extended period of time past the date when we start raising the key ecb Interest Rates, and in any case, for as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation. Continue to provide ample liquidity through our refinancing operations, in particular the latest operation in the third series of targeted longterm refinancing hasations, tltro three registered a high takeup of funds, supporting bank lending to firms and households. The Monetary Policy measures we have taken since early march are providing crucial support to underpin the recovery of the euro area and to safeguard mediumterm price stability. In particular, they support liquidity and funding conditions in the economy, help sustain the flow of credit to households and firms, and contribute to maintaining favorable financing conditions for all sectors and jurisdictions. At the same time, in the current environment of elevated uncertainty, the governing council will carefully assess , includingformation developments in the Exchange Rate with regards to its implications for the mediumterm inflation outlook. Continues to stand ready to adjust all of the instruments as appropriate to ensure inflation moves towards its name in a sustained manner towards its aim in a sustained manner in line with its commitment to symmetry. Let me explain our assessment in greater detail, starting with the Economic Analysis. Euro area real gdp contracted 11. 8 quarter on quarter in the Second Quarter of 2020. Results data and survey indicate a continued recovery of the euro area economy and point to a strong rebound in gdp growth in the third quarter. Alongside a significant rebound in industrial and services production, there are signs of a notable recovery in consumption. , momentum has slowed in the Services Sector compared with the manufacturing sector, which is also visible in survey results for august. The increases in Coronavirus Infection rates during the summer months constitute headwinds to the shortterm outlook. Looking ahead, the further sustained recovery remains highly dependent on the evolution of the pandemic and the success of containment measures. Uncertainty related to the evolution of the pandemic will likely dampen the strength of the recovery in the labor market and in consumption and investment, the euro area economy should be supported by favorable financing conditions and expansionary fiscal start, and a strengthening in global activity and demand. This assessment is broadly 2020cted in the september ecb staff Macro Economic projections for the euro area. These projections for see real in 2020, plus8 in 2022. 1, plus 3. 2 compared with the june 2020 euro system Macro Economic projection , the outlook for real gdp growth has been revised up for 2020 and is largely unchanged for 2021 and 2022. Given the exceptional uncertainty currently surrounding the outlook, the projections include two alternative scenarios which we will publish on our website following this press conference. Overall, the balance of risks to the euro area Growth Outlook is seen to remain on the downside. This assessment largely reflects the still uncertain economic and financial implications of the pandemic. Estimates, euro area annual h itp inflation in august from positive. 4 in july. On the basis of current and future prices for oil, and taking into account the temporary reduction in the rate, headline inflation is likely to remain negative over the coming months before turning positive in early 2021. ,oreover, in the near term price pressures will remain demand,due to weak lower wage pressures, and the appreciation of the euro Exchange Rate. Despite upward price pressures related to supply constraints. Over the mediumterm, recovery in demand, supported by accommodative monetary and fiscal policies, will put upward pressure on inflation. Ofketbased indicators longerterm Inflation Expectations have returned to their prepandemic levels, but still remained very subdued while survey based measures remain at low levels. Broadlyessment is reflected in the september 2020 ecb staff Macro Economic projections for the euro area, which foresees annual inflation 2021, and2020, 1 in 1. 3 in 2022. 20 euroswith the june system staff Macro Economic projections, the outlook for ,nflation is unchanged for 2020 has been revised up for 2021, and is unchanged for 2022. Projection for inflation in 2022 masks an upward revision to inflation, excluding energy and food, in part reflecting the positive impact of the monetary and fiscal policy measures, which was largely offset by the revised path of energy prices. Turning to the Monetary Analysis, broad money growth continued to rise, reaching in2 in july 2020 after 9. 2 june. Strong money growth reflects domestic credit creation and the ongoing asset purchase by the euro system, as well as precautionary consideration which fosters a heightened preference for liquidity in the Money Holding sector. In this environment, the narrow monetary aggregate encompassing the most liquid forms of money continues to be the main contributor to broad money growth. Loans to then private sector continued to be shaped by the impact of the coronavirus on Economic Activity. Following strong increases in the early months of the pandemic, the annual growth rate of loans to the nonfinancial corporations remain broadly stable in july, standing at 7 , compared with 7. 1 in june. High rates of corporate loan growth continue to mirror elevated liquidity needs to firms to finance ongoing expenditures and working capital and to further build liquidity buffers, although the rebound in Economic Activity has resulted in some recovery in revenues. The annual growth rate of loans to households also remains stable at 3 in july. Sinceme rate as observed april 2020. Growth in loans to the private sector continues to benefit from historically low bank lending rates. Measures,ur policy together with the measures adopted by National Governments and european institutions, would continue to support access to financing, including those most affected by the ramifications of the pandemic. , a crosscheck of the outcome of the Economic Analysis with the signals coming from the Monetary Analysis confirmed an ample degree of monetary accommodation is necessary for the robust convergence of inflation to levels below but close to 2 over the mediumterm. Policies,fiscal ambitious and quarter native fiscal stance remains critical and coordinatative fiscal stance remains critical. Fiscal measures taken in response to the pandemic emergency should be targeted and temporary in nature. Endorsed safety nets by the European Council for workers, for businesses, amounting to a total of 540 billion euros, provide important funding support in this context. The governing council also strongly welcomes the next generation eu package of 750 billion euros, which has the potential to significantly support the regions and sectors hardest hit by the pandemic, strengthen the single markets, and build lasting and prosperity recovery. In order to fully reach its potential, the package will need to be firmly rooted in sound structural policies, conceived and implemented at the national level. Welldesigned structural policies could contribute to a faster, stronger, and more uniform recovery from the crisis , thereby supporting the effectiveness of Monetary Policy in the euro area. Targeted structural policies are particularly important to revitalize our economies with a focus on boosting investment in Priority Areas such as green and digital transitions. We are now ready to take questions. Question comes from reuters. Good afternoon. President lagarde, your words indicate the Exchange Rate was a topic of discussion in the governing council today. Could you give me a bit of detail about that discussion and how concerned are you about the current level of the euro . Do you think the strength is justified and how much does this affect policy . Whetheruestion is about you discussed any change to any of your policies, whether it is tltro, was there any change discussed today . Pres. Legarde thank you so much for your questions. Yes, indeed. Discusseding council the appreciation of the euro. As you know, we do not target Exchange Rates. Our mandate is price stability. To the extent appreciation of the euro exemplifies negative pressure on prices, we have to monetize or we have to monitor and this was indeed discussed during our governing council. On your second question concerning changes to our we, as always, look at how effective and efficient our policies are and our programs have been. Thatwe look at the impact a program like the Pandemic Emergency Purchase Program has been, we can only knowledge the fact it has been efficient and it has been effective. Whether you look at the sovereign yields across the euro area, whether you look at all indicators of fragmentation, you can come and we can come and certainly did take stock of the fact that it has worked in and with respect to the risk of fragmentation. In terms of monetary stance, we also acknowledge that pepp has served its purpose, although initially it was not intended for that particular aspect of Monetary Policy, but it did. We decided to maintain our Monetary Policy, to maintain our accommodative Monetary Policy, and certainly under current circumstances it is very likely epp will envelope of p be used for the purpose of developing those policies. The next question comes from isabella. Thank you for the opportunity. President lagarde, two questions. The first is on pepp. The ecb does not fix the size of its Asset Purchases Program in relation to the size of Government Bond issues. Ambitiousat you call fiscal measures in response to the coronavirus pandemic will result this year and next year and a massive increase in debt to gdp levels. Are you and the governing council worried that as debt increases might jeopardize financial instability and provoke unwanted pricing in higher yields and spreads, so in that sense the market suspects the pepp to be increased, and what you think about Market Expectations for that . My second question is on banks. Showed a fragmented Banking System and some weaknesses. Covid19 can increase fragmentation and weaknesses in banks and so markets expect more to be done for banks, for example substituting the tltro three conditions. It is the council looking at that on european banks in the and the vision of tools . Thank you. Pres. Legarde thank you for your many questions. Let me take the opportunity of your first question to acknowledge and celebrate the fiscal measures that were taken. Asked foreatedly fiscal measures to be taken, and for fiscal policies to work handinhand with Monetary Policy. This is clearly something we have seen since midmarch, both at the national and european level. If you combine all the fiscal measures that were taken at the national level, you arrive at , consisting of gdp of measures that have an impact on the outlook. That is not to mention the measures that were taken under the headline of guarantees, which roughly account for 20 of gdp. That is only at the national level. As i said in the introductory statement, the governing council strongly welcomes not only the three safety net measures that were decided earlier in the summer to help employees, companies, and sovereigns in a total amount of 540 billion euros, but it did welcome of they the breakthrough new Generation Eu Fund of several hundred and 50 billion euros, which will clearly have an impact. Most of which is not included in our projection as they are being published today. These fiscal measures were necessary, and im only pleased they could be taken in due course and sometimes with the necessary waivers and exemptions required at the european level. Words about the program we put in place, the pandemic emergency program. Let me remind you that it has two functions. It was initially calibrated for 750 billion euros back on the 18th of march. The firstwas function was to stabilize markets to ensure a smooth transmission of our policy measures. The second function was to ease our Monetary Policy stance to help counter the substantial downgrade of foreign inflation outlook caused by the pandemic. The pepp in march and its recalibration in june have successfully stalled a tightening in financial conditions and contributed to easing the overall Monetary Policy stance. Clearly with market stabilizing and risks of fragmentation subsiding, i remind you we are premuch back to the precovid levels in terms of spreads. The flexibility property of pepp, which is distinct from the hasibutes of the cspp become less prominent. In easingf the pepp our Monetary Policy stance has taken a central stage instead. Nutshell, fiscal measures were needed, they were taken timely and efficiently. , as an emergency program, was clearly responding to the needs of the time. I would at the tltro you referred to has also served the purpose we intended, which was to make sure the economy was ,eceiving liquidity in order not to accumulate liquidity or build buffers, but to make sure lending to the economy was taking place. Tltro three was calibrated with that in mind. Access a actually borrowing Interest Rate which can go down to 1 , is only under the condition that the lending to the economy, corporate and households, is tantamount to what it was or more than what it was prior to covid19. Differentee is very tltro two. One and we observed at the time of this massive takeup for this first one trillionghly and 300 billion euros. We observed it was well spread throughout the euro area. It was not a category all bank in a country, it was across the board. The other thing we have observed , which tells us it is effectively working is the low Interest Rates, which continue andpply, both for corporate households. Increased credit this lends to the economy, plus 7 for the corporate, plus 3 for the households, and the fact that the banks themselves in a july survey we have published say the tltros has helped them to lend to the economy, and it shows in the numbers. Those banks that have taken up tltros have a larger proportion. F loans to the economy in this stocktaking exercise in relation to tech in relation to continued asset purchase programs, and relation to tltros, we believe our Monetary Policy tools as calibrated have worked well. Next question is from bloomberg news. Good afternoon. My first question is about recent comments by philip lane in which he talked about a two stage policy approach to the pepp. He said his role is to counteract the negative shock to the expected inflation past caused by the pandemic. How widely is this view that is depending mostly on the outlook for inflation outlook the shared by the governing council . My second question is about the recent strategy shift were a lot of attention has been made to the change in inflation goal where you have to have some thoughts about. It also introduced an important shift in how it addresses the health of the u. S. Labor market, paying more attention to how marginalized groups fair in the economy. I would like to know what efforts the ecb is making to understand the unique eating qualities facing minorities in the unique inequalities facing minorities in the labor market. Pres. Legarde thank you very much caret i think i have just addressed the point youre raising, which is the dual function of the pandemic emergency program. It was a program in and of dnalf and it has in its flexibility, which was clearly intended to address the issue of dispersion, the risk of fragmentation, and intended to make sure our Monetary Policy was transmitted across all Member States of the euro area. Clearly, that function has worked, is working, and is critically important in order for our Monetary Policy to transmit throughout the whole region. Thats a dual function and the other function has to do with the monetary stance, and toarly it will continue address and deliver on that dual function. We very much hope it continues , bothk on both accounts the stabilization of financing positions