Innovations, but does promise a massmarket car by 2023. Welcome to bloomberg surveillance. I francine lacqua. A lot going on in terms of news flow. We have an etf show coming up but we have some breaking news in terms of pmi for the euro area. A bit of an indication of where we are headed in terms of economic prowess or not. September services pma coming in at 47. 6, below the estimate of 50. 6. Ityou get a figure above 50, means we are in expansion territory which we are not paid european stocks across the board are gaining. Partly, this has to do with some of the recent trends we have seen, certainly when it comes to Market Street the dollar also extending the rally and it does seem like the stocks are steady as equity markets try to build some up one upward momentum after we had a pretty big selloff that cut valuations in early september. Coming up later today, the fed has shelled out 8. 4 billion dollars buying fixed income etfs, so how do jay powell do and of the investors that try to get ahead of it . We will discuss that on our weekly show, etf iq europe. Lets get to leighann gerrans. Leighann fed chairman Jerome Powell is calling for further support for the u. S. Economy, saying it has a long way to go before fully recovering from the pandemic. He made the comments during testimony to House Financial Services committee. Prospects for another round of fiscal stimulus have dimmed in recent days amid tensions over a replacement for Supreme CourtJustice Ruth Bader ginsburg. Meanwhile, President Trump plans to replace the late Justice Ruth Bader ginsburg getting momentum. Republican senator and from critic mitt romney says he supports moving forward with a confirmation vote. That all but cautious democrats votes of stalling a nominee until inauguration day. President trump to announce his pick on saturday. Ngesident trump and xi jinpii class to during a United NationsGeneral Assembly meeting. President trump used his speech to accuse beijing of balloon the oceans and lying to the world about coronavirus. Leadersterpart slammed for trying to politicize the virus. As the race for a vaccine continues, the Washington Post reports it will be new rules for emergency authorization. The u. S. Food and Drug Administration will bring in tougher standards that will make it difficult for the drug to be cleared for election day. The new guidance is expected as soon as this week. The u. S. House has passed a stopgap funding bill to keep the government operating through december 11, that is after a deal to provide aid to farmers and Food Assistance for low income families. The bill now goes to the senate. Its passage would avert a Government Shutdown just before the november 3 election. Global news2 4 hours a day on air and on Bloomberg Quicktake powered by more than 2700 journalists and analysts in more than 120 countries. Im leighann gerrans. This is bloomberg. Francine thank you. Lets kick it off with the top story and Boris Johnson announced new measures yesterday to prevent the spread of the coronavirus. We always knew that while we might have driven the virus into retreat, the prospects of a second wave was reached in the last fortnight. Daily hospital admissions in england have more than doubled. If we could curve the number of daily infections and reduce the reproduction rate to 1. 0, then we can save lives, protect nhs in the most vulnerable, and shelter the economy from these more costly measures that would inevitably become necessary later on. Im sorry this will affect many that are just getting back on their feet, but we must act. Unless we probably make a progress, we must assume the restrictions will remain in place for perhaps six months. Francine that was Boris Johnson yesterday. Dani burger is in the city of london. Are there less people about today . Dani definitely not. If you were to compare this to a week ago, it is almost no difference at all. We have been seeing people around this area. Currently, i am across the bank of england so this is a popular in a section behind me. Yes, the number of people has picked up. This is by no means what we would see, for example, last year around 9 00. The peak of people going to work but most of the people have been speaking to say they are on their way to work and have no plans to work from home. For example, one person i spoke to, he works for a recruiting agency. He said his office is full. They have social distancing measures, hygiene measures in place. Theres no real reason for them, they think, to go home. That would not work from up until they are told they have to by the government. I spoke with someone else who works in real estate, saying they still need to go in for meetings. Otherwise, he expects less people to go into the office. People walking in, this a lot of bike riders here. Warnediness lobby has the most recent restrictions are going to be difficult for businesses to survive. We might see more restrictions come to the city of london. The mayor has warned he might need to add more restrictions and businesses around here might need more support. Francine what have we heard from banks of how it impacts people going back to the office . Dani you and i have been talking about this for a while. Banks have been some of the more aggressive business is to get their employees back in the office. Today, we learned Goldman Sachs is putting those plans on pausing london because of this announcement of Boris Johnson, pressing Office Workers to stay at home if they can. Their office which is a 15 minute walk from where i am standing now, it was about 20 full, but goldman says no need to come back anymore. They were really aggressive in the beginning trying to get their traders and the people who need infrastructure back in the office. Hsbc we learned this morning is heading the pause button. They are no longer continuing their phase one plan of getting people into the office. Saying even if you need to grab an item, that is not being allowed unless there is some court of exceptional circumstance. Francine thank you for the update. Dani burger. Lets get to another one of our top stories. The ecb the risks legal trouble if it tries to extend the Emergency Powers of its pandemic bond buying plan to its other asset purchasing program. Paul. Ng us now is t what is the significance of these comments . Paul i would say it feeds into a debate that looked like it might have been getting started. There were reports earlier this week that some governing Council Members believes the powers of the Emergency Purchase Program are very useful and could be used after the pandemic crisis, perhaps in the existing asset purchase program. Ecbas been at the heart of policymaking since the birth of a european he is a lawyer. Hes warning of legal trouble if they go down that route. Hes pointing out the governing council always links the Pandemic Program as a special power, the extra flexibility it has, to the pandemic. That was in the Monetary Policy statement. It was in the legal text and it has been every one since. Decide to change tact, the runner legal risk. It is significant wording from him. Francine what does the Economic Outlook actually warrant in terms of more stimulus . Would we get more stimulus in december . Paul this does not rule out the ecb deciding the Pandemic Program needs to be bigger or last longer. Hes not prepared to go that far at the moment. He said the outlook for the economy is in line with current projections. 80 decline in gdp this year and only a partial rebound next year. He did say there are signs it could be better than that but it all depends on the Health Situation. What he called a major caveat to any projections. If the Health Situation deteriorates, not just infections but the burden in the health service, that could derail scenarios. We saw today pmi numbers come out which were very poor for the Service Sector which is the biggest part of the economy in the euro zone. That is at risk and it does mean, i would say, more pandemic purchases could yet be announced as economists predict in december. Francine thank you so much for the update. Paul gordon, who leads our ecb coverage. Tesla up, the muchhyped battery day fails to meet expectations, but it builds out a roadmap for building out the first massmarket electric car. We will discuss that later in the program. This is bloomberg. Francine economics, finance, politics, this is bloomberg surveillance. We are getting some breaking news out of jp morgan. A lot of the banks have been preparing with the extent of brexit and now maybe a hard brexit. No deal with the eu when they leave january 1 of 2021. We understand jp morgan is set to move 230 billion of assets to germany and the brexit shift. What we know so far from jp morgan, we will try to dig deeper and bring you details. They chose paris as the european headquarters. Some of the reasons the reasons they need to actually transfer physically some of the assets that they have managed and decided to do that to germany in this brexit shift. As soon as we find out more, we will bring it to you. Lets get the Bloomberg Business flash. Leighann tesla is setting the lofty goal of making a 25,000 car by 2023. The car will be possible by innovating electric car batteries and cutting the costs in half. It is part of the companys socalled battery day that lacked the sizzle investors have come to expect from ceo elon musk. Hsbc is joining Goldman Sachs in positing its efforts to return to its u. K. Office. That is after the governments appeal for britons to work from home to help combat coronavirus. Workers says critical will continue to do so. But most staff will remain at home. Nike is bouncing back from its pandemic slump. The Worlds Largest sportswear market returned to profit for the quarter, posting far better revenue than expected. That was helped by growth in china and sales by ecommerce rallied late trading, giving a boost to other activewear companies as well. That is your Bloomberg Business flash. Francine. Francine thank you so much. Lets turn to diversity and the topic of women in leadership the former Prime Minister of australia, julia gillard, and the candidate running to be the next chief, spoke about the obstacles women face on the road to becoming leaders. We need to increase the pace of change. I think we need to do two things. The business of politics has been structured around mens lives, not womens lives. We need political institutions, parties, politics to reach out and embrace women and to change, to make it a profession you can engage in, balance work and family life. On that, it is showing the way forward. Second, weve all got to get out of the backs of our brains, sexist stereotypes. When we look at women, we tend to project on them baggage that they should not bear. We are more interested in their appearance. More interested in their family structures. We are predisposed to concluding they are unlikable, a bit of a bitch. We need to get those sexist stereotypes at of our heads and give women a fair run at leadership. Interviewed the women in the report at how Women Leaders are better at controlling the deaths from covid19. Do you think out of this pandemic we will see more countries be willing to elect female leaders . I hope so and i think we are having a good debate about female leadership brought to the fore that countries led by women are faring better in this recent pandemic. Im always a little bit careful. Are always going to be more empathetic or more nurturing, because that is weaving the gender stereotype through. But, the fact that Women Leaders have been lauded in this pandemic. The fact that we are reevaluating the importance of caring throughout our society. And disproportionately, the women on the front lines whoever is on the front lines are women. The fact too that that weve got real experience now with this world and we could take with us the best of it to enable work and family life to be better balanced. If we want to, we could come out of this pandemic era turbocharging gender equality for the future. Sure. Add something to what julia said. If you look at these women, theres also something thats important. Build trust with their societies over time. Pandemicem of this also has a lot to do with trust. Is society trusting what information you give them. Your society willing to obey and do things for the public good when you say so. I think the Women Leaders, if you look at their careers, they have also built up a level of trust. You said that women are only given leadership roles when things go wrong. 2020, a lot of things have gone wrong. How much of a problem do you foresee glass cliff this year and next 5, 10 years to come . Thank you. We actually say it tends to be the case. There have been some women who have leadership roles when things are going right, but you notice a lot that women are given an opportunity when no one else wants to do the job. We have this unusual year, the not only causing Health Problems but economic problems. In some countries, it is going to be really dire. In many countries all over the world, economic consequences are really severe. It will be interesting to watch what will happen in countries where the politics gets more fierce and more murky or more difficult, and who will come forward. Will women have a chance to come will people or vote for women to lead . We are going to watch that and see what happens. The w. T. O. Is not without challenges. It was interesting to see what happens with alexion of the leadership. Is it going to be a woman . I always say you shouldnt elect a woman unless they are competent. Lets see if a competent woman will be selected. Francine that was julia gillard, former Prime Minister of australia, and candidate of the wto to be next director. Talk with the worlds biggest brewer and what it means for the beverage industry. This is bloomberg. Now some companies are talking about restrictions. Pubs in the u. K. Will likely have to close that 10 00. Withalso learn how to live social distancing so they were able to put tables outside sidewalks. Society is trying to Work Together in partnership. The other way to bridge this will be through partnership. Mayors have to allow bars to expand their footprint so people can have their social activity and these things but with social distancing. We are helping our clients weather the storm. During the lockdown in the u. K. And many other countries, we did vouchers. Buy vouchers during the lockdown. We would match oneforone. That would be working capital for your pup to survive. Can the pub reopened, you redeem the voucher with food and drinks. We tried to facilitate and connect consumers with their favorite, so they can help the establishments go through the andh period and be there when the situation gets to a new normal. Francine your catchphrase is bringing people together. Do you think you will have to produce less beer in 2021 . Carlos i dont think so. I think consumers will find a way. Mean, if there are restrictions, the consumers are smart and will learn to live with those restrictions. Migrate. Ome will they want to arrive early at the pub and go from the pub to home and continue as a Smaller Group at home. At the end of the day, when you think about the human being, us, we are a consequence of millions and millions of years of way our brains are wired. The way we evolve as human beings. We need social interaction. So much only zoom can replace but at some point people have to be together again. That can be in ome, and the part, Smaller Groups. People will always try to go back to what brought us here. Francine that was ab inbev chief executive carlos brito. Jp morgan moving about 200 billion euros from the u. K. To frank for. This is because of brexit. We will have plenty more on the story. This is bloomberg. 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 up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Francine welcome to bloomberg etf iq europe. Over the next 30 minutes we will be your guide to the regions thriving market, Exchange Traded funds. Everything you need to know about the funds and the flows. It is six months since global stocks at their bottom as the world is ready for more coronavirus restrictions. How should ets prepare . Powells investments turnout, and what about the investors who try to get ahead of him . As some of the worlds biggest Asset Managers face Climate Change voting records,. First thing is first as was countries and expected inspectors have been at tracking the money . Dani burger has been tracking it. Danica this looks at funds that track different european assets. The past