After the ecb announcement and it has been quite choppy in the u. S. , equities are now lower. All three indices are down. The dow and s p down by. 4 , nasdaq down. 1 . The 10year yield at 70 basis points. Little movement but enough to show there is some kind of reaction. The euro continuing to strengthen. Above 118. We will stay on the euro. Surgeine lagarde say the in currency must be monitored. That only called for the european to strengthen further. Our first guest is lena komileva. A lot to unpack out of the meeting but how is the european economy doing . Economy wasropean recovering quite strongly from the effect of the lockdowns. It is the balance effective switching on and switching off and on an entire continent. Whilst important is that a lot of the conversation is about the top figures, which did recover quite strongly in the early months after the lockdowns, we had quite a great divergence between the sectors. Those most affected by social distancing are lagging behind but others have recovered quite quickly. That is giving optimism to policymakers we are in a locked down recovery that is underway. Having said that, we have seen a great loss of momentum in the recovery in the last eight weeks. That has coincided with a spike in covid numbers. It is too early to say but it is clear for a region that is quite export dependent, developments in global trade are having in influencing affect. The gap that seemed to be closing after the lockdown is not going to be with us for a while longer. That creates a question mark about how Balance Sheets and the private sector and the Financial Sector and Banking Sector will adjust to the end of the early physical cushion to covid. Theie we should mention 10. 2 on a plane it rate across europe is slightly different of a metric than the Unemployment Rate in the u. S. Because the full rate of employment is slightly higher at the best of times. Generally, can we anticipate the Unemployment Rate will come down across, even as europe Takes Center Stage again with the pandemic . Lena its a political phenomena. Not just in economic phenomena. Various programs are in place in europe by virtue of the stronger awayl safety net have in led to less volatility. That said, its impossible to underestimate the degree of adjustment this still has to happen. We are clearly not at the end of the pandemic. We will be with covid for a while longer. The private sector Balance Sheets cannot delay the adjustment to the new normal. That means permanently lower demand in the sectors. Sectors most affected by social distancing and acceleration of technological innovation. In general disruption from technology sector, airlines, you name it. Those structural adjustments will happen even with the social safety nets that exist in europe. Ultimately i am optimistic about where we end, not just for europe but the global economy. This is a shock that has forced businesses towards stronger innovation, accelerating technological investment. It will force some upscaling at up training of labor skills, particularly from those in low income sectors where workers are being displaced at the moment. That is something to look forward to. Something has to happen between here and now. That is a shift towards Government Programs that focus more strongly on labor investment and retraining skills. This is happening but probably at a pace that will not preclude finalolatility in the part of 2021. David i want to show you something lagardechristine talking about depreciation. Here is what she had to say. And the current environment of elevated uncertainty the governing council will carefully assess incoming information, including developments in the Exchange Rate with regard to simple of occasions for the mediumterm simplifications for the medium term outlook. She is convinced it will not have an impact on inflation. Where did we see the euro going . Lena it is an interesting thing. The ecb decided to play it very safe today. It was a very defensive communication that basically stopped short of Market Expectations for drawing a direct link between the euros strength and the ecbs forward reaction function. What is interesting and the parameters that guide policies of the ecb, there was an uninfected addition in their underlying inflation rate. Pricese cpi excluding for 2022. That reflected optimism about domestic demand recovery with fiscal stimulus expected to eurosthe impact of the appreciation. Thats an interesting economic calculus. It says we are not going to directly respond to the Exchange Rate because we think governments will do more heavy lifting to protect the private sector from a disinflationary impact of the stronger euro and the loss of competitiveness. At a time when the euro is not just appreciating against the regionsut against recovering at a much speedier pace than the euro zone, china for example, there does seem to be a placeholder of a position rather than the endgame. Sooner or later any decision about how to tackle the Exchange Rate will force the ecb into interaction. I dont see this as a sustainable position. The fact the ecb did deliver what was expected today did with the markets in the wrong direction. Table the euro strength with the rising real rate in the eurozone zone because of negative inflation rates will do little to strengthen market. Onfidence brexit i want to move to and the European Commission had saying the u. K. Has not engaged in a reciprocal way. This rose up from the ashes in days and has become a complete debacle. What is the base case in terms of what happens by october 15 and the end of the year . It is a political negotiation. Think ultimately by looking at headlines on the global terminal, it seems like the u. K. Does not want to trade deal with europe. It is playing extremely hardball this late into the process. The stakes are extremely high. Pay no deal brexit will extremely damaging for an economy that is already behind of the massive risk premium in terms of gdp growth. Looking beneath that storyline, clear the strategy the u. K. Site is following is to evident for the outsiders, the europeans how attractive it will be to have the u. K. Outside a trade deal. Does not would have another rogue nation making its own rules. Contrary to the negotiation tactics to force the other side tualatin a compromise. We will see if that pays off. Thatpean side has tells us how far apart the two sides are and how much noise we we reach a deal. The incentives are clearly on the table for the u. K. Site in terms of the message they want to send brussels to brussels. It is probably not an attractive proposition. David len vonnie lena, wonderful to speak to you. Has told his Trading Floor staff to return to the by september 21. Jp morgan has told his trading staff to return to the 21, whichseptember gives them about two weeks to get into the office. Deal. Ty big the first bank on wall street to staff they have a mandate to come back in. Is a weekf september from next monday, less than two weeks. Just the trading for staff, not the entire staff. Already begun and continues. Senate democrats have the vote the republicans aid bill. Senate democrats have the votes to block the bill. Over to Mark Crumpton with first word news. Western europe has surpassed the United States and new daily coronavirus reemerging as a global hotspot after bringing the pandemic under control earlier in the summer. Cases have been on the rise in spain, france, and other nations. The region reported more than 27,000 new infections in the past 24 hours. The u. S. Reported 26,000. Wildfires in Northern California have transformed the skies over san francisco. Than two dozen major fires are burning in the state now. One has caused a 25mile path of destruction through mountains and foothills. Possible thousands of homes and buildings have been destroyed. At least three people were killed yesterday. The london hearing on wiki leaks founder Julian Assanges expedition from britain to the United States was suspended today because one of the lawyers may have been exposed to the coronavirus. The attorney will be tested and then the decision will be made forward with move the hearing, which will likely take about a month. He is fighting american prosecutors attempts to get the British Government to send trial the u. S. To stand on spying charges. 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 Mark Crumpton. This is bloomberg. Vonnie this is bloomberg markets. Time for the stock of the hour. Citigroup shares are lower after the bank made history by tapping jane fraser as its next chief executive officer. Kailey leinz has more. Kailey corbett stepping down after being at the helm since 2012. Jane fraser will be his replacement. She is the president and ceo of the consumer bank. She was elevated to that secondincommand spot a year ago. The timing of this is a bit surprising, given that many thought Michael Corbat was stay on for a few years and its unusual for a ceo to step then in the middle of a crisis such as this one. It is history making giving she is going to be the first female ceo of a major wall street bank. Her resume already quite impressive. She has been at citibank since 2004 after leaving mckenzie. Its an important point to emphasize, this is about citi pushing hard into consumer, not just investment banking. Their Retail Banking and credit card units make up about 45 of the revenue. All that said, frazier will face a bit of an uphill climb. Citi has struggled to make profitability. Is stock is up 43 , but that half of the gains seen by the s p 500 financials index. We spoke to a bank analyst at wells fargo who closely followed that earlier today from bloomberg tv. Take a listen to what he had to say. Change it citigroup is good and needed. Citigroup has improved over the last eight years under my but they my corbett, still have workingclass efficiency, returns, and stock market valuations. They have come a way but not as far as they need to go. Jane fraser can give a fresh look. Kailey he did note that she is a bit of an unknown entity. He and others noted that some investors maybe wanted to make to look externally for its next ceo. Mail is giving them credit mayo is giving them credit in terms of diversity, having a female wall street ceo. Vonnie i go back to the great financial crisis. She was right there at the center of the restructuring. The badheaded parts of i bank, coming up with strategies and so on. People have been concentrating on the most recent history but there is a long history. She has been it citigroup since 2004. What about the other big banks . Does this have momentum to ramp up Diversity Efforts . Kailey i would argue they were already under a bit of pressure given the elevated exposer the diversity and equality conversations for industries across the board. Not just in terms of gender but also in terms of race. When it comes to the top spot there is a lot to do in the Financial Sector. Of all the Financial Companies in the s p 500, only 6 have a female ceo. That is on par with many other sectors. Only three in the s p 500 have a better representation, but citi making progress on that front today. Vonnie kailey leinz, thank you for that. Still ahead, as employees returned to the Office Changes must be made to make them feel comfortable and keep them safe. We will speak about ensuring quality air in the office. This is bloomberg. Vonnie this is bloomberg markets. The u. S. Is pulling the plug on plans for a 48 hour delay in reporting swap trades. There was a proposed to have been a delay in which time banks and Fund Managers could make trades and have them cap secret. Bloomberg is reporting regulators are backing away from that plan. There will not be any twoday reprieve as it were. Moremmer comes to an end, banks are making plans to bring employees back to the office. Getting a headline from dow jones that j. P. Morgan is telling its Trading Store employees to be back by september 21 unless there are mitigating circumstances. Employees must feel comfortable returning. Obviously the airborne transmission of covid19 must be absolutely cap to a minimum or stopped. Joining us now is senseware ceo serene almomen. How much you can break the covid19 spread, if you like, inside . Serene airborne transmission has been shown to be the most concerning mode of transmission of the covid19 virus. We are seeing a lot of different measures being deployed in indoor spaces. The problem we have seen is that when the threat is invisible in the measures are invisible, how do you really know what is working and it is safe to be in inside spaces . That is where senseware comes in. Our technology is able to monitor all aspects of the measures that are being taken for use in terms of transmission of the virus in indoor spaces. Alert in real time if they are not working as they should. And just help make sure aroundtheclock we are creating a safe environment for everyone. A big aspect of that is air quality monitoring using different types of sensors to show how clean the air is and vonnie in many cities air quality was already a little suspect in many professions. How does senseware compete with covid . How do you upgrade your systems to detect a virus which is different from air quality . Monitoring we have a set of sensors monitoring and realtime the conditions by which the virus will be viable and be more or create a risk of infection. We monitor dead zones and can say theyre a dead sounds in these areas of the building. We do that with sensors like co2 sensing that measures how ventilation is working. Bythe five marketing monitoring particulates in the the filtration in the spaces working. We monitor humidity levels. We know from the science that you need to stay between 40 and 60 team entity to minimize the viability of the virus. We are monitoring all these different aspects based on how howscience is telling us long the virus stays viral and stays in the air. We are letting everyone know in real time when we are taking a condition where there is a risk to get infected. Vonnie you have been on the go for several years. One of your funding rounds was in 2015. How has covid allow you to scale your business . Have you received many more inquiries . Serene yes. We are known to have a premium product honor Indoor Air Quality monitoring. Just because the fact that covids airborne transmission is a big concern and expertise in the area allowed us to play a big role in helping a lot of businesses and schools create a system around realtime visibility and the safety of the indoor spaces and creating confidence for people to come back in. It definitely created a big opportunity for us. Vonnie thank you, serene almomen, senseware ceo. We will discuss oil ellen wald ellen wald with of the with ellen wald of the atlantic consul. Mark im Mark Crumpton with bloombergs first word news. Anate democrats have blocked narrow pandemic relief plan proposed by democrats. They say it didnt go far enough given the damage covid19 continues to wreak on the economy. Leaving congress at an impasse. Estimated at 500 billion, the package was a fraction of the two point 2 trillion back to by democrats. Its covid19nding screening of International Travelers arriving at airports. The cdc had been testing passengers on all flights from highrisk areas to 15 u. S. Airports. The cdc says the system wasnt effective because so many people who transmit the disease dont show symptoms. It willrnment says focus on voluntary measures such as educating passengers and requesting Contact Information electronically. Not runn says he will any campaign ads tomorrow, the 19th anniversary of the 9 11 terror attacks. He will visit shanksville, pennsylvania, where united flight 93 crashed into a field after being taken over by hijackers. The president will also visit the site. In 2016, both mr. Comp and Hillary Clintons campaigns both pledged not to campaign on the 15th anniversary of the attacks. Iran began military drills near the strategic strait of hormuz. The socalled wargames are taking place amid escalating tensions between the u. S. And iran. Units from the iranian navy, air forces and Ground Forces are taking part in those drills. 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 Mark Crumpton. This is bloomberg. Amanda im amanda lang. Vonnie im vonnie quinn. We are joined by both our bloomberg and bn and bloomberg audiences. Bloomberg audiences. Senate democrats blocked a narrowly tailored relief plan proposed by republicans, calling eager a response. Opec turns 60. We will take a look at the legacy of the oil cartel with author ellen wald. Tracking the world hunger crisis. We will speak to the ceo of the u. S. s largest domestic Hunger Relief Organization about the state of Food Security in this country. A bit of a reversal first stocks today. To expectng told volatility. In terms of what is leading us to the downside, energy is the biggest single decline on the markets today. Tech is off today. You can see the nasdaq hovering around breakeven here. We are off the lows of the session for the s p 500 and the nasdaq. We are certainly still showing some weakness here. There the price of oil. Bitt is holding up a little better than west texas intermediate but we have seen declines. Perhaps a reflection of concerns about global growth. Progress onmassive a vaccine and the resurgence of covid globally. Happens on the 60th anniversary of the opec cartel. This is where some of the party had been planned had been interrupted because of the covid19 pandemic. Ellen wald is a senior fellow at. He Atlantic Council opec for an studying long time. When we think about the history of this day and the power it has ,ielded over time on the market has it lost its power in shaping the price of oil globally . An inflated sense of the ability to control the price of oil because opec has historically only been effective when it controlled most of the Spare Capacity. Opec was founded in 1960 but it didnt have any power to speak of until we get to 1970, which it was forced to import from the middle east and most of that Spare Capacity in the world was centered in opec countries. Toc power has continued wax and waneed over the years. When it does have power over the price of oil, it tends to wield the power and consumers around the world field the feel the effects in a very significant way. Vonnie how has the power shifted in the global oil universe . The cartel was influenced soft power. Influential iny the 1970s, in 1973. They had a lot of power because they were the ones in these countries producing oil or they were buying the oil from the opec countries and then distributing it. So they had a lot of the power. Seeds thisen opec power away from them. Basically they were negotiating for the price of oil and couldnt reach an agreement and so opec basically said negotiations are over, we are just going to set the price of oil unilaterally and that combined with some other geopolitical aspects led to the 1973 oil shock. Countries playr an Important Role in the oil 1980s,e saw in the increase production particularly from alaska and the united , opec had much less influence and they tried hard to ofend defend the price oil by cutting production over and over again. It never really worked for them. In 2014 whengain opec was really suffering from increased production from the fracking revolution and it took a long time for them to really be able to expand the group to include these other countries kazakhstan, azerbaijan and mexico. This allowed them to affect the price of oil in incremental ways. Amanda one big shift thats happening is the shift away from fossil fuels altogether. How quickly we get there and how long it takes we can debate. We have seen Oil Companies reflect that that shift is coming. Where does it leave saudi arabia . How concerned should we be on a country that is so dependent on this commodity . This is something saudi arabia and opec as a whole have been grappling with for some time. The 70s when opec first jacked up the price of oil, it was the Saudi Oil Minister who argued that opec was acting against its own interest in setting an oil price that was so high because a oil prices would encourage the shift away from fossil fuels. He was actually saying this to his fellow ministers in 1973 has an argument that this was not good for them. I think opec realizes theyve got a fine line to walk. There is this Ongoing Energy transition. When you look at the process as a whole, in particular saudi arabia does believe there is whetherd demand for oil its in gasoline, jet fuel, the fuel that goes into the ships that transport products around the world but also into areas into making plastics and products. I think they have a pretty good idea that they can no longer depend on just selling crude oil for gasoline. They have to be involved in all of these other aspects of the value chain of oil in order to remain relevant in a world that is really looking at all different sources of energy. Vonnie always a pleasure speaking with you, ellen wald of the Atlantic Council. Coming up, Senate Democrats have just blocked a slimmeddown slimmeddown republican pandemic relief bill. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. Amanda lang in toronto. Know, colony had begun reshaping its portfolio prepandemic to focus on digital infrastructure. Jason kelly joined him and spoke about the new era and the u. S. Election. A secretary mnuchin, chairman powell have done an amazing job with 430 five individuals trying to figure out how do we get a plan to the people. Its not to us. Its not to the big companies. Its not the Balance Sheets. People are panicked for survival. The average individual trying to figure out how do i live, how do i go forward, whats happening with my rent, whats happening with my home loan, whats happening with my check. Its not coming from that employer anymore and that can confusion and dismay when you have three to 5 trillion being flushed in the economy of how you disperse it, you have to give them all great credit. At the end of the day, the solution to all of that has got to be a resurgence of confidence across all the things that we talked about. Pandemic, i honestly never thought i would see a global submission as bad as this is and as horrible as one death is and how an environment like this, we cant find a solution or a cure is another quandary. But the cessation of revenue in the world is a problem. And the unintended consequences of that, the openness of the division between the have and the havenots, what we are seeing in black lives matter, in kenosha and portland and chicago and the anarchy, certainly is part political which weve always had. Its being displayed in a different way than its been. But its part of this financial frustration of people just not having a gps as to what their life is going to be and can they sustain themselves. That, i x amanda that was colony capitals tom barrack in conversation with jason kelly. Democrats in the senate have blocked a slimmeddown pandemic relief package. Bloombergsing in government reporter jack fitzpatrick. Is veryc here, this political now. Does this mean that no stimulus will flow until after the november election . Beenlot of reporters have asking lawmakers, are you giving up. Are you ready to give up and say the next thing is the election. No one has said explicitly its over, we are throwing up our hands, but we havent heard of any concrete plan to take another vote on another piece of legislation and they have to move on to other things like funding the government to avoid the shutdown. Of aless there is somewhat miraculous change in either sides position, we just dont see much of a pathway forward until after the election. Is Congress Ready for mass starvation, mass unhappiness and really disaster in our cities and suburban areas . When you talk to lawmakers in different parties of different ideologies, you get very different responses in terms of what the effects are, in terms of voters opinion on how serious the problem is still. There may be more people wearing , but there is a bit of a fatigue in terms of taking those precautions. I dont think i can tell you that every single lawmaker believes that the level of destruction is exactly the same and that the needs are exactly the same. Obviously there are disagreements on the economic side of it that are not surprising. Funding forcomes to Supplemental Nutrition Assistance Program and things like that and the basic needs especially for poor people and people of color especially, politics and ideology are very much in the way. Amanda i guess this brings me to the logic around saying nothing is better than getting exactly what we wanted. As far as i gather, the Senate Democrats opposed to this because it wasnt enough. One of the concerns weve heard from economists has been about a fiscal cliff. That do youncern is think . Theres a lot of concern, especially among democrats on the economic stimulus side, especially based on state and local government aid. Thats the detail that is the big Sticking Point aside from just the Politics Around us. Democrats still want to see Something Like trillion dollars in aid to state and local government. Republicans are nowhere near that number and the reverberation that could occur from huge shortfalls in state budgets over the next year or so could be really significant. Its hard to predict exactly when that would take effect and who it would affect when, but there is a huge gap in terms of partisanship in terms of determining the economic effects of whats necessary, especially for state and local government. Vonnie thank you, jack fitzpatrick. Coming up, the state of Food Security. Hint, its not very good. Hunger is surging amid the pandemic. Meeting theks are need with feeding americas ceo. This is bloomberg. Amanda this is bloomberg markets. Im amanda lang in toronto. Alongside vonnie quinn in new york. Thanks in part to a Global Pandemic and some natural risk natural disasters, the United States biggest Hunger Organization admits that more americans could be hungry in 2020. Isire babineauxfontenot giving us context on how many people generally are food insecure and how many more we expect. Whats the increase off of what base . According to the usda statistics of 20, Food Insecurity rates in the country were about 37 million. That was 2018. We just got the 2019 number. It looked like they inched down to about 35 Million People. Top of that, we are looking at projections of as much as 50 Million People being food insecure as a result of the pandemic. And about 20 million, almost 20 million will be kids. Its really devastating whats happening out there in terms of food crisis right now. Wenie from the very start saw disturbing images of long lines of vehicles. Its just unreal to see that kind of thing in the richest country in the world. Next . Appens where regionally do you see the most need . Start by saying weve seen an increase as of now of than we more demand have historically been seeing. Those long lines of people, weve tried our best to limit what those lines look like. One of the things that is so important for people to understand is that people are still out there. There is still a need. Images,ont see those its because some of those lines are dispersed. 50 Million People are struggling. Where itswo pockets inordinately impacting people and one is in Rural America and the other would be in communities of color. They have always had special challenges with both of those demographics, but those are made even worse today with the pandemic. Amanda we just heard from the organization that runs access to free clinics that donations are way down. What are you seeing in terms of especially from your big corporate supporters, whats the level of support like now. One of the challenges we had is weve had to go out and purchase those because many of our traditional donations have been in the form of retail sure youve im seen those images of empty shelves at grocery stores. What they had in excess they were donating into our network and many times they dont have anything to share so weve had to go out and make additional purchases. Weve seen a is remarkable outpouring of support from the american public, from corporations. The problem is that even with all of that including the federal interventions that have been bipartisan in nature, even with all of those interventions weve done some recent research and it shows the supply demand gap over the next 12 months. That includes everything weve gotten so far, about 8 billion meals. The need is still great. We continue to need help. Congress back at the table. We need them coming up with bipartisan legislation. I heard you earlier talking about Supplemental Nutrition Assistance Programs. Thats one of the things that actually should not be at all partisan because it is so helpful in so many ways. For every meal that we provide, snap can provide nine. Veryso know snap has a stimulating effect on the economy. Saw that for every dollar invested in snacks, the return on the economy was 78. I hope that everybody is going to get back to the table and they are going to prioritize the most vulnerable members of our society because what we are andng and i get out witnessed it firsthand on the ground, theres a lot of devastation. Over 35 Million People are food insecure. Inordinatelydemic impacting them from a health perspective. Vonnie a stunning figure. Thanks to claire babineauxfontenot, feeding america ceo. Crumpton. Mark about six in 10 registered voters in the United States say they plan to vote before election day. Pastmatic shift from elections likely caused by fear of the coronavirus. Post university of maryland poll released today, 61 percent of voters said they planned to mail in their ballots, put them in a dropbox or vote in person at an early voting center. Only 39 said they would vote on election day. Senate democrats have blocked a narrow pandemic relief plan proposed by republicans. They say the measure didnt go far enough given the damage covid19 continues to wreak on the economy. The billin favor of was short on the 60 needed, leaving congress at an impasse. The package was a fraction of the two point 2 trillion backed by democrats. The u. K. Refused to withdraw legislation that would tear up part of the brexit withdrawal