Beijing. Its markets, g president xi say both side have increase talks. Amid a cuts, it comes drop this quarter. And joining london me very, very shortly, its called technology, when she is ready, she will join us. Through on s coming bayer, the company in germany, point of the weed thousands more u. S. Wind up weed killer has been a deal reached. This is the breaking headline coming through. That the court filing was late monday epresenting consumers argue that roundup had caused their cancer. A little more detail on that, we bring that to you. Nne marie will be with me, but absentia of herself, a snapshot of the markets. The narrative of recovery and victory for trump, how does it translate, its data and the recovery coming through in china that equities chinese higher. 6 of 1 , the trifecta, sales, investment and wise. Ction yuan trades higher, how much stronger will it get. A man concerned about relapse. Cable peaks in the green at 8. 67 despite the political chair s in westminster. The first growth rate since covid19 hit early in the year. Output also picked up and its now ahead of the pace 2019, the chief Investment Officer of wealth management, good to have you with me this morning. And accine, the recovery, victory. This morning were very narrative n the data in china. Ow important is that the narrative in the data from china, does it play out globally is it isolated as you trade . Maurice the times when china from the world, we worlds economy which will be growing. Its impressive. You talk about the links we the rest of the world, know that this leads to exports exports, the fact that china is a leader and a role in as played it. Its important to this extent, the fact that china can row and the rest of the world is in recession and it means for china t of the world, could be a force and thats why talking d states is with china now. Thoughts. Ld those were showing the bond ifferential, anne marie is joining me some just a second. The v isower of magic, on the screen. I told you before this show 6 00, where were you . Ann marie the recovery in china this shows it has legs, also the credit data from last week i want to wing that, get more recent perspective in mean of what does this for. Them t take pressure off continuing acting . Extremely wise, ere talking about liquidy injection, they are no way near key for the future. China has several objectives, one of them is to have the yuan of the world y take the role of the dollar. I dont think they will manage that, for sure, they are to advanced in this spot, some extent the u. S. Is the dream they initially have. Also the numbers this Morning Investments are down, china is not only managing to its economy, mostly by mall degrees, they are are on all options the table. Maurice, you made me smile there that yuan is the dream, its more of a of dollar weakness. I just want to understand this. Overweight cash and gold, defensive, maurice, been ur disquiet heightened by last weeks market narrative . Defensive ery position i sense from you in the moment. Maurice allow me to disagree the market, we are seeing they are just using it nd we are slightly nderweighted which is actually a difference, yes, 20 , so ok positioning. Youre right in the fact that overweight cash, we were markets. In liquidity we were wrong, it happened in september. Thats the reason why. See cash not so much as ecently, but if we think its see r, than the market, we cash opportunity because we were expecting in the near term. Really happened. Were quite confident in the medium turn, thats why. 10year spread, maurice, 250 treasuries is widening, basis points. To look at china sovereign, the search for yield depressed around the world or do you think going to the u. S. We see , the rhetoric between the u. S. And china means that you might want to from there,back off its not so safe. Aurice an excellent point, yes, of course, chinese thing, ent, that sort of its because of the fed, the and japan who were doing that before or going into monetary theory, the great conditional crisis and to lift taboos about that. With it doesnt compare any other markets. You, china has a place. The irish, the american, lets accent range and get to australia by way of singapore markets, jules are you doing . Im good, were talking about j. P. Morgan m lifting its target for the currency. 6. 8 to the dollar for the first year. Ince may last j. P. Morgan revising the 6. 85 to 6. 9. Lift dium path of resistance. About do you re buy chinese bonds, City Securities and schroeder yes, you do. Ay china returns to growth and as starting to see the yuan reverse. Could have d market sustaining file and we asked the 10year yield down around two basis points, were talking bout the strength doming they h and a third day, report that a vaccine could each the general publicly november. Ann marie. Thank you so much. Accent as man us english one, its bloomberg day break europe. Trials have restarted in the u. A. On hold in the u. S. Ntil they suffer a side effect from a patient. Seen as likely one of the earlierest to reach the market. U. K. , Boris Johnson has assed a soft tileal and deceiving members from his own party. Government admits it breaks International Law and will face in the bigger battle house of lords. Urging est u. S. Bank is stay. O news 24 hours a day, owered by more than 2,700 journalists and analysts. This is bloomberg. Manus laura, thank you very much. Start, up, the fastest the equity market has driven the frenzy. From that exclusive next. Rsation right here this is bloomberg. Bloomberg. Good morning, this bloomberg day break. Recap of mondays m. N. A. Deals, thebillion of highest tally at the start of september 2019. 146 billion, a 51 increase period a year ago, if the current flows stay at the it would make 2020s best. E talked with mark about the uture of dealmaking post covid. It was by liquidity. Therption things about what happened last time. I have a f c. E. O. S, strategy if opportunities become to start , im going looking at again, thats built over the last couple of months. At valuations, running a little more than 11 if its reported not bit r markets, there is a of an evaluation opportunity that people have taken advantage of. Sustainable is highly questionable. And the kinds of deals being interesting the features is we have seen a lot Government Intervention or just this morning on government looks d particular talk or oral. And s a great question ill not sure i have a great answer for you. Clear we have seen the Regulatory Environment has tougher, erally antitrust, so its not that surprising. A lot of concerns about sustainability and e. S. G. We do about it. Ere going to see more interventions. You plan around them and go for it. Mean is it the way they look at the risk of the closing, change some of the additions in terms asking for getting over the line . You have to be smart in the pleasing process, the feasibility, can you get through in an environment like this. Again, around sustainable in e. S. G. , a lot of tevert has hurt e. N. Goo, lets take that conversation to maurice. Im drawn to the comment on and the liquidity has driven the consequence. Not all of the u. S. Physical stimulus is over, the economy in years. Coming toity train is you on one side, is government key to driving these markets further. Frisco plug the space liqu liquidy . Banker, urse and the inflation for europe and he goes nd looking about work, what it does how are your, how is your raduation, if you have zero everywhere, the temps are going can payspecifically you foryour price for football, the earnings. Driver, you big yes the economy to grow and or sure the u. S. In particular are going full steam including quite new. Ch is now, unclear whether there will we should item so must. This should be the next step, richard e, but cycle, its easy so restart and then the lickiedy is what dries most people. Thats what we heard the guests talking about, this takes a , tara different shoe of m. N. A. Monday. Illusion of feeling were back to normal, this is nothing and how theyre not really push as towards the conomy and one of them is do youg in the opposite, dry to that that he had with a uerrey of deals but none are underlying economy. We talk about, on the worrying. Ion which is and an also be a drama equity guy. The crash and then banking in 2006 and 2003, not sign. Arily a good many, many good deal are trying create much value. Agree with that. That, funding is up cheap and grocery cart. Working on my french and waiting to your boyso tell sometime. Thank you so much. Coming up, the european noon market, this is bloomberg. Manus this is day break europe, the e. U. Says china should open its market further. Conference, video the representatives said the ball is in chinas court. A lot still remains to be and in other important steps of the disagreement, particularly into areas that one is marked with xs, and the sustainability. We need children to move friends issues. Wo y dont have to grier its without conclusion nd mary, good to have you with us. What the european demands, the timeline . Timeline at this point is very unclear because we were hoping or at least the e. U. Was hoping to get this endstment plan going by the of this year. Lions, you dont want to see pressure. There are a number of issues. The fact that we didnt get a second short statement. Received one r we without conclusion. Shift and you that possession, when it comes to china. Also a into china was increated balance for so many folks. It done unless its four the company to allow access despite the company. We were hoping this guy would be done before the end of the year. 202 if the chest decides they theyre not ball, really doing. Xi mind your own business. What would you say whether or going to play ball . Its interesting, it did get a lot, we press conference from angela merkel. They decided they wanted to take there. Feel that and what he chinese could do to some extent is to decide in the long line,re playing exports, are a big deem but at do see the ou politics here are coming very and ed with the trade thats a nation for bothed e. U. China. Attracting the goal nart u. S. And china. Plan to resumes its cut jobs with the lender facing likely revenue drop this quarter. Dorl, north. North. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Annmarie good morning. From bloombergs European Headquarters in the city of london, i am Annmarie Hordern with manus cranny in dubai. This is daybreak europe. 300, butsted the csi Retail Stocks are broadly mixed. Attention turns to the fed. President Xi Jinping Tells the e. U. To mind its own business. He agrees both sides need to accelerate talks to a trade deal, but will not take lecturing over human rights issues. And job cuts are back on the table, citigroup joins wells fargo in cutting its workforce as revenue falls this quarter. Manus. , good morning. One thing we both working on listening t back to was the interview with ill gross bill gross. One thing i found interesting from his Investment Outlook was he compared the postcovid economy to his sons tattoo, saying that covid19 was like a tattoo on the global economy. It will take years to recover from. And of course he talked about the fed. , front and center on investor minds tomorrow. He said it is playing the dog in the treasury is wagging it. Is it inflationary, yes. Manus and then there is the de globalization argument. You are right, it is the tail wagging the dog. What gross had to say in terms of the run in the markets, in his opinion, it is not all the u. S. Fiscal stimulus. You will need a quantum of deficits to continue to pump the economy. In future years, it will require 4 trillion, 5 trillion, 6 trillion. So youre looking at that as a risk. Deglobalization and deficits are the risk. You have asia on that. One year high on the yuan. S p futures rallying. Is the deal done . Donehey desperation deals because you go nowhere to deploy your cash. Oil, cable and 10 year government bonds, it is the fed coming to bear over the next two days in terms of the guidance they will give. Bank of america says the risk is a downside,. 35 and on the upside come up. 15. What will the fed do if we spike to 1. 75 . You need to go back at google it, that is called a taper. Jonathan knows all about it. Know he is watching annmarie i know about temper tantrums, manus. If jonathan is watching, that is good. He says investors[laughter] should be defensive as fiscal stimulus in the u. S. Fades. He spoke in an interview from california. Take a listen. I think the demographic influence continues. Globalization is turning to deglobalization, which is not deflationary but in inflationary. That is going to change outside the pandemic. And of course the pandemic is not has not helped globalization, it has actually accelerated deglobalization. To some extent, yes, the virus is changing things. Tom i have to go to your memo today where you talk about a 6 trillion deficit. We have heard this from other sources. One great economist has made clear that we need much more deficit coverage. What does your world do, what does the bond world do if we get 5 or 6 trillion deficits. Bill the bond world at the of the fed melding and the treasury. To my way of thinking, this sounds rather derogatory, but tha the fed is the dog and the treasury is wagging it, and to some extent if the treasury ones trillion they went 6 provided through mmt and through purchases, which they have done, do i endorse that . No. Is that constructive down the road . It is not. Is it inflationary, probably yes. We will have to see. It has not been in japan. The way we have melded fiscal now, theary right deficit could increase what we are at 100 of gdp already. At some point, as others point , if the fed stays out of it or bash their influence, inflation will come back. We had inflation with Financial Assets and commodities so it has just come back in another form. Tom you recommended the proctor and gamble dividend and the bond world selloff is collective chair. I will give you great credit for coming up with this concept. Do we have an asset bubble or bubbles floral because we have your financial repression . Bill i think so. And we have an asset bubble because Interest Rates are near zero and negative in many parts of the world. That, at least to my way of discussedthrough models and so on, it has inflicted Growth Stocks and anything that would have profits in the future but is growing fast. So, yeah. Financial repression cometh it is something that has always been swept under the rug not only by powell by yellen and bernanke, etc. , as something that can be fixed at a later point. Prior fed chairs have either focused on inflation or focused ,n reinvigorating the economy and to the extent that retirees and to the extent that Pension Funds and savers are being heard, that can just wait. At some point it cant, and a think we are beginning to see that. We dont have to talk about credential or Insurance Companies or banks, we can talk about momandpop on main street in des moines, iowa, where they have no more savings and they are not able to earn money on whatever they have left. Year islem year by going to increasingly the is getting increasingly greater to read that becomes the real chink in the armor of this entire financial complex. Manus bill gross of pimco, the cofounder, speaking exclusively to lisa tom and jonathan. There is still a real yield. Maurice gravier of emirates nbd is august host. Lets get for the bond markets, that is what bill gross does best. Look what bank of america said. They said asymmetric risk in the bond markets is skewed to 1 . The risk is that those deficits rape and that could reprice the bond market. Is the asymmetric risk in the bonds in the u. S. To the upside, and is it capped at 1 . Maurice our own fair value for the end of the year based on a longterm quantitative model is 1 for the u. S. I think yields are capped. I heard one day somebody on your talking about the u. S. Government funds as free of risk, and this is where the asymmetry is. Investment bonds are the new government bonds. Me, the u. S. Treasury is becoming more and more kind of like a currency rather than if your investment. Capped yields are because the longterm prospects are not right. I wish it happens, that is a way to solve the debt issue, but i dont see it coming. Deglobalization, yes. But theres technology and this has not stopped. Annmarie in mentioned japan. They have been printing money for decades but they have not been able to bring up inflation. The u. S. Is much more prepared to run a budget deficit. Do you think in that sense the u. S. Could actually be successful . Theice well, first, japanese are the leader in this modern monetary implementation. They did it for the past decade and nothing happens. The difference is japanese government bonds are mostly owned by japanese investors, which makes it different, why the u. S. Treasury bills there is no choice. You will run this large a deficit. Deficit will be contained in coming years, but longerterm covid was one thing. What is coming is more automation a. I. , and people having less jobs. And maybe we will go into some kind of helicopter money, where at the end, maybe we just had the snapshot with covid of what theens in a democracy when voters are jobless. We are in uncharted territories for the long run. Huge deficits may not matter, we may print money in front of that . Annmarie it will be interesting at some point if the fed is able to remove the punch bowl. Thank you for joining us this morning. Maurice gravier, cio for emirates nbd. In wall street, job cuts are coming for citigroup employees. The lender joins rivals like wells fargo, ending an earlier pledge to stop staff reductions pandemic. Dani burger. Has been looking at this house deep can we expect these cuts today . Deni they are not particularly steep. Globale 1 of cities workforce which is about 200,000, that they will be letting go. But it is significant because they had pledged earlier in the pandemic to give their employees some relief that they wouldnt have any job cuts. But if you look at citis employee base, we will not see any changes. That is because they have hired 26,000 people so far. So it more washes out the job cuts they will take. Doesnt mean they are not important. There is a good reason citi was to get their costs under control. They are likely to see their revenues drop. Not have the growth in sales. But Interest Rates are still very low. We are likely to see loan losses continue to pile as well as Consumer Spending that has really slowed down. We also learned yesterday that regulators are considering a public reprimand against citi because of deficiencies in some of their rent controls. Citi has been spending a lot of money in that area to get that up to standard. Manus productivity now. Employeesn says working at home are less productive. Ends. E never it starts at 4 30 and goes on and on and on and on. [laughter] on the rightis track . Annmarie doesnt matter where you are, manus, you are always productive. [laughter] dani jp morgan found that everyone working at home the entirety of the workforce, they are less productive at home but they specifically point out the kids. They say younger employees are less productive at home, this is blamed them kbw, who creative combustion is taking a hit for these younger employees. J. P. Morgan. Touching spokespeople for their part say their younger employees are missing out on learning one in the office. This is a key data point. You want to bring your employees back into the office . We have learned that frequently, people do work longer hours at home, but perhaps of those longer hours are less productive if you are a jp morgan employee. What banks are telling their employees, come back to the office jp morgan is telling employees to come back september 21 if they are in one of the key sales and trading jobs. They are opening their new york offices and hoping to have 50 capacity by next week. Manus thank you very much, dani burger. We never left the office, did, annemarie, dani and myself. The whole debate is the we just more . Did you work harder at home, Annmarie Hordern . Tell the truth . Annmarie my terminal was up all day. And never shut down from 4 00 a. M. Until i went to bed. I found that i worked more at home, but i am probably more focused in the office. I will be honest. Manus there you go. Dani, we like your focus, razorsharp. Lets move along. Coming up, we are back to productivity, politics and elections. More work in the next 50 days. Than a trump in california. State officials clashing over climates role in the wildfires. We will discuss that next. This is bloomberg. Oomberg. The dystopian future we have seen onscreen so many times over the years, where people need to travel through space and time to find habitable planets or shrink themselves to combat the population is starting to seem less and less like a figment of hollywoods imagination. The people who are most affected are already almost loanable. Climate change is an equity issue. One, we have been warned about it for decades. For many, it has a ready reached their shores. None of us need to be reminded of the stakes of our work to fight Climate Change. If we did, we would simply have the vastround to see fires and smokefilled air here california. Are we going to continue to be caught up in the politics of the day or are we going to make the right decision for Environmental Justice . Saying it cant be done, it is too overwhelming, Climate Change is not real, or it is just too hard to tackle so dont even try i can almost guarantee you that that is spain coming from this spain that n coming from oil companies. To ensure we can meet the enormous challenges we face today . Annmarie we heard from different celebrities, political and activist organizations, voices on Climate Change. The bloomberg green festival kicked off yesterday. Make sure you catch the week long event that gathers aientists and others for Virtual Event focusing on core issues of climate action. Todays speakers include the chief objectives of philip as well as in formula one world champion. I will be moderating one of the conversations. Make sure you join us. It is 10 50 p. M. In the west coast. Donald and california state officials sparred over the weather Climate Change is contributing to what fires. Staying up with us is our correspondent, jeffrey taylor. Thank you for joining us. Give us the latest comments on both sides, what is the reason for the clash of use . Jeffrey the president comes to california where it is pretty raw here in the state, you have six of the largest wildfires in california history burning. Much of oregon is in flames. Killed ine have been oregon and properties threatened there and we welcome every morning to toxic smoke and ash all over our steps in our cars. In this climate, the president came to sacramento, the state capital them a, and clashed with californias officials over Climate Change. It was quite remarkable. People in the state are reacting quite strongly. Manus jeffrey, good morning and thank you for staying up so late. Rhetoric mr. Trump used it will start to get cooler, just you watch. I dont think the science exiting those. This is the level of discourse we are at between believers and those who think Climate Change is less credible. Jeffrey the president portrays it as a matter of forest management, a management situation, that city officials need to get out and clean up dead leaves entries he doesnt come right out and say that Climate Change is false but he doesnt embrace it either. The closest he got to having a direct clash over the science of read, ihat you just mean, he predicted it will start to become cooler soon, in the face of record temperatures in Greater Los Angeles and the San Francisco bay area. I think what is at work here at bottom is politics. If the president comes to the state to praise the First Responders and some National Guardsmen who helped rescue some people who were threatened by fire in the central part of the state, he gained points for that. He could deny Climate Change or seems to doubt Climate Change, he gains points for that with his base. He can leave the state and ridicule california as failing to exercise drop of forest management. Meanwhile, officials in california just want to keep the money coming. The governor of california is circumspect in what he says to the president because he wants millions of dollars of federal aid that trump is actually providing. Manus the politicization of what is truly a human and ecological nightmare. Jeffries, thank you very much, our u. S. Political correspondent, jeffrey taylor. What is next for the German Economy . We look ahead to the survey due at 10 00 a. M. London time. This is bloomberg. Manus this is daybreak europe. I am manus cranny into by, Annmarie Hordern is alongside us in hq. And matt miller is the anchor alongside anna as the European Market opens. We have talked about the recovery in china. How important is that for benchmarking where we are . Good morning. Matt good morning. It is important. There are a slew of figures out showing the german recovery is quicker than other european countries. They had a bigger shot of stimulus and it started and then stopped its lockdowns sooner than many other countries. Ofwe should expect a reading 59 on the survey today. That compares to a slightly higher reading last time of 71. 5, but it should be around ballpark. We will talk about a lot of other things on the program today. We have henrik johnsson, Deutsche Bank go ahead of capital markets. There is a great cohead of capital markets. There is a great story on bloomberg about billionaires who want to take their companys private, thinking that Global Markets are a little bit too much. Rocket internet here in berlin is one smaller example we have been talking about the last couple of weeks. But the big story is softbank. Can the arm sale allow Masayoshi Son to take softbank private . Annmarie matt, thank you so much for that preview. He is up next with anna edwards. We have European Equity futures turning in red. The dax as well. We are trying to see if the dax can hold on to breaking and year. Flat on the but we do have u. S. Equity futures pointed to a higher start in new york. Manus yes, we will keep a night on paris, up by 0. 3 . , we often talk about that today. Today it is about Vaccine Availability in china, and the vshaped recovery. Does that carry through . That is a question. We handed over across to matt and anna as they take you through the the european open. 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. Anna good morning. Welcome to Bloomberg Markets the european open. I am anna edwards live in london alongside matt miller in berlin. Matt good morning, anna. We look ahead to the fed. Asian stocks drift with european features investors focused on the next risk event. The cash trade is an hour away. 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