Transcripts For BLOOMBERG Bloomberg Surveillance 20240712

Support. Welcome to bloomberg surveillance, im Francine Lacqua in london. Lots going on on the markets. Lets get straight to what the european stocks are doing. Down 0. 5 . Stocks are falling with u. S. Futures, as well. Oil dropping below 40 a barrel. Economicl says the rebound likely needs more support and that leaves a lot of questions about what Central Banks could or could not do. To have ans good idea of what is going on with the german economy, the german Business Confidence index aligned with expectations. Get straight to the bloomberg first word news in london. Leighann gerrans. Good morning. Protests in louisville, kentucky. One officer is undergoing surgery and a suspect is in custody. The latest violence was sparked by a grand jury decision not to file murder charges against Police Officers involved in the Fatal Shooting a Breonna Taylor. One officer faces a lesser charge of wanton endangerment for firing into neighboring apartments. Itsu. K. Is considering first vaccine study that will deliberately expose people to the coronavirus. The idea of socalled challenge trials has gained momentum recently and a growing number of volunteers have signed up to take part. This type of study can speed up research, but raises ethical questions about exposing people to a potentially fatal virus. France is cracking down on bars and jims, introducing new measures to help stop the spread of coronavirus. It is limiting public gatherings in paris and several other cities, but the government is not planning a new national lockdown. The marseilles area is currently one of the worst affected and all restaurants and bars will be shut there. 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. Im leighann gerrans. This is bloomberg. Francine . Francine thanks so much. Lets kick it off with the latest on the markets. Warnings from the Federal Reserve about the need for stimulus injected fresh jitters. The dollar meanwhile advancing to its highest levels in seven weeks. Fx, great now to talk to have you the day after we heard from powell. What happens to dollar . In the, we have been strange position where during the summer it has been a dollar selloff thanks to European Growth expectations outpacing the u. S. What is happening now as we are starting to get to a place where coronavirus cases are spiking again. Fiscal stimulus in the u. S. Is becoming much more questionable in this election cycle and that is going to hurt u. S. Growth and risk assets. The fact that help weighing one right now are the risk upside falls, consensus positions, whether it is crowded visions, start to hurt, francine. That is the short dollar trade that has built up over the summer. Even though it is a u. S. Story in terms of expectations being dampened by the lack of a fiscal stimulus agreement between democrats and republicans, it is hurting risk assets. Francine when you look at euro, at what point does euro strength become a real problem for the ecb . Is there a chance we enter into a currency war . Jordan i dont think it is going to be a currency war. It is not really a problem compared to the coronavirus. In terms of the impact on gdp, trade, inflation, there is a currency element to it. It definitely ways in inflation, but dealing with the covid19 situation is just so much more important. The volatility of gdp and inflation from the coronavirus lockdown and so forth is so much more important than the currency, so when the ecb started talking about the currency more it was not a big deal for us. It did slow down the move higher in europe, but it was not a reason to sit short. I just recently entered short eurodollar positions. Ive also gone long against the norwegian krone. That was in the back of the risk sentiment, the news from the u. S. With Justice Ginsburg passing away, and the stalemate that would create in congress made the likelihood of stimulus in of the physical side drive the long dollar view. Francine what do you do with the swiss franc . At the moment we heard from snb leaving the deposit rate unchanged. Will they have to intervene into the fx market more . Jordan they absolutely have to and they already are. We saw much bigger intervention earlier this year in march and april. There has been much smaller intervention more recently because they did not need to. Me why client that asked is it when euro is stronger, euroswiss is moving higher . Snb has been consistently leaning against the wind in terms of fx price action. The swiss franc will be used as a funding currency thanks to its low interest rate, but there is no attraction in buying u. S. Swiss downside just because we have a central bank constantly fighting against the wind. Euroswiss is very much a range bounce. Francine lets talk about pound, given what we saw in terms of restrictions for coronavirus and brexit looming. Jordan well, francine, it can definitely go lower. Against the euro, it can go 94, 98. Cable is around 120. One thing we have to make clear is no deal is now much less of a scary prospect for fx markets thanks to the experience of covid19. What can happen, though, is we have a coronavirus station building again this winter and no deal brexit weighing on the pound. 120 is the brexit impact. If we also have a coronavirus lockdown, we could be talking below that again. We sell 1. 15 during the madness of march. We can see these sorts of levels again if we go to no deal and you look at a coronavirus lockdown once again. Francine thank you so much, jordan rochester there. We will have to get jordan to go through some of his other calls. Up next, a continuing conversation. We will talk about the economic Recovery Plan here in the u. K. We will also talk covid19. This is bloomberg. Francine economics, finance, politics, this is bloomberg surveillance, im Francine Lacqua here in london. New coronavirus restrictions have pushed to the u. K. Chancellor rishi sunak to push out new measures to protect jobs and businesses. The government will focus on extra state cash. Joining us is the u. K. Shadow chancellor Anneliese Dodds. Thank you so much for joining us on bloomberg surveillance. I know you have pushed quite hard to get some of the Spending Plans that the government has put in place, but it seems we are in a tricky situation given the extra restrictions. What would you do differently . Very, very are in a difficult situation. Obviously, the u. K. Is particularly suffering currently. By many projections, we will have the deepest recession in the g7, potentially a very slow recovery compared to whether nations. We have been calling an of the chancellor to take a longer term view. Above all, we have been calling 40 times for the chancellor to look into introducing a system of targeted wage support, like that which operates in germany. It has taken a very, very long time for him to announce that. It looks like he will do that today, but of course that has come in after the announcement of additional restrictions and some of the deadlines for redundancy consultations have started before the end of our furlough scheme. We really need much quicker action and effective action. To work with ready the chancellor if he is willing, as well as the businesses and trade unions to get this right. Francine but your criticism goes to the amount they are spending . Notorious chancellor has spent as much in no tory chancellor has spent as much as rishi sunak. Is that where they are targeting the money . It is where money is being targeted. It is the fact that we are having very slow response. Quite often in the u. K. , we had Public Health measures being announced, but without economic measures being announced at the same time. There has been a lag and it has been a damaging lag. We need to government to get a grip on this. Around wage support, we havent been calling for a continue of the u. K. Furlough scheme, which backs wages up to 80 and then is being withdrawn gradually. We said, lets have a targeted incentivizes,that rather than a subsidy from government. We think that kind of targeted approach needed now and it needs to be put in place much more quickly now than we are seeing from the conservative government. Francine do the restrictions change your view at all . Because the situation is trickier or do you think some of the things that you are calling for are more urgently needed because we are facing a difficult economy over the next two or three years given the restrictions possibly put in place for six months . Well, that is right. I think that the argument for targeted wage support has become much stronger. The government said they did not want to introduce it 20 times when i called upon them to do so, so clearly they change their minds quite rightly around that. But there are other areas where we will need to see action, given that this recession we are facing right now. In particular, we need to see the training and retraining program that is so necessary in the u. K. Weve got very weak systems, a lack of capacity in that area. Has already allocated funding for National Skills strategy, but it is not being used. It needs to be used to put into place for people who have already become unemployed, but we also need to see government facing up to the debt crisis many Smaller Companies will be facing. It sounds like the chancellor might be potentially extending some of those coronavirus related loan schemes in a statement this afternoon. We will wait to see what he is announcing, but we need longerterm plans. We need businesses to be able to invest and take on new staff if they possibly can. Francine in other parts of europe, certain countries governments are taking active stakes in companies as a part of support. Should the u. K. Do the same . We really dont think the conservative government should be ideological, we think they should be pragmatic. There will be cases where an equity stake would be the appropriate way forward, one which delivers value for money. Ive seen consistently very clear that there are conditions placed on the use of public money. We have not seen that very much from the u. K. Government and i think that is a big problem because it means that some of the schemes have not been used in the direction they were intended. We want government to be openminded. There are Industries Like aviation in the u. K. That will need to be substantially changed for the future because of the climate crisis, because of sappy what looks like a reduction in demand structurally. We need governments to be much more active in the sector, planning for the future with businesses, to get us to a better place. Francine if we were actually to , is there a. Company or sector where you think the government should be much more actively involved in giving much more support . I think there are a variety of different ways for government to intervene in order to protect our economic capacity. Ive been particularly concerned given the lack of process progress around wage support until it appears today with what is occurring in the Aerospace Industry and our arts industries, creative industries. Both of them are critical for our exports. They are also very important in terms of employment when the kind of supply chain that applies to aerospace impacts on very large numbers of jobs. Very important for our Environmental Programs in the future, as well. Until now, we have seen very little panic from government in relation to supporting jobs in those sectors. We are going to have to look very carefully about what the chancellor announces around wage support. I think that will help if he puts the right scheme in place to protect deployment, but we are employment, but we are waiting for details. Francine can we afford more debt . Investors are trying to figure this out on the u. K. At what point do you think too much debt is the biggest concern of the u. K. . Well, clearly we are in a situation where Interest Rates are currently low, but that will not necessarily continue forever. I think it is really important when we look at these questions that we focus on the size of the u. K. Tax base. That is shrinking because people are losing their jobs, they are spending less because their income is going down. Businesses are becoming insolvent. All of that is a really strong impact on where tax base. We need to preserve economic capacity, try to maintain the size of that tax base. That is important. In the middle of this deepest recession in 300 years in the u. K. , preserving our tax base and economic capacity is really the most important thing right now, so that we can have hopefully that recovery that we really need to see. Francine thank you so much, the u. K. Shadow chancellor Anneliese Dodds speaking to us today on the stimulus plan that will be announced by the chancellor. Thank you, Anneliese Dodds. Coming up, the future of europes biggest economy. That conversation is up shortly. This is bloomberg. This is bloomberg surveillance, im Francine Lacqua in london. Coming up, we have quite a lot talking about what is going on in the markets. One of the things we are looking at is eurodollar and all the dynamics. A couple of data points. Im glad to be joined by clemens fuest, president of the ifo institute, to talk about the economy and what has been going on in germany. When we look at the business touch belowjust a estimates, do you worry that with coronavirus cases rising and on the rise, that it will mean a big hit for consumption . Mr. Fuest there is a risk, no doubt about that. What is driving the recovery in the index at the moment is manufacturing, mostly. We have seen improvements in that is related to exports going quite well for some of our trading partners. Also manufacturing in other countries recovering, but there is a risk that the second wave of the virus will cause problems. We Ask Companies about the situation of expectations. Expectations are coming down in services and that means countries are worried about the second wave. Francine how confident are you in your forecasts given the rising uncertainty that we are dealing with now . Mr. Fuest at this stage, clearly forecasts are very difficult, no doubt about that. It is very hard to assess how the infections will go, how the pandemic will play out. In addition, we have uncertainty about u. S. Elections and all that surrounds it and on top of that, we have the brexit negotiation that is stuck with a lot of uncertainty around the scenarios. They are very uncertain, no doubt. Francine if you look at what we have been seeing overall about the furlough scheme in many European Countries, what is the right thing for the German Government to do right now to make sure the economy is fully supported as much as they can afford to . Mr. Fuest the German Government has come up with a lot of stimulus. That was the right thing to do. , itink at the current stage should continue doing this. There is no reason to expand stimulus at this point in time. But at the same time, it would be much too early to think about scaling back stimulus. So just continue what has been decided, including the furlough scheme. Year, i suppose we will know more about where the economy is going and a new decision can be made. Francine do you think the german model should be a great example for other European Countries to follow suit . Mr. Fuest i frankly dont think so. We have furlough schemes in other countries and i think the relatively benign situation in germany is related to the sectoral structure, which is more oriented toward industry and manufacturing. Then we have to see that germany was hit later than other countries, especially southern European Countries, by the pandemic and that is why infection numbers were lower in that has contributed to the better economic situation. So it is not just miraculous economic policies. Francine can you give me an update on how you are expecting trade to go ahead before the u. S. Election . We were worried for a long time that the Trump Administration would put tariffs on german carmakers. Do you think that risk is less because we are so close to the election . Mr. Fuest i think the focus at the moment is elsewhere and not so much on euu. S. Trade. I think the administration has also understood that u. S. And eu trade is less imbalanced if we include services then many people think, so there is little to be won for the u. S. Administration in a trade war with europe. This is more with china, it seems. I would not expect problems on that front. Francine thank you so much for your time. Clemens fuest, the president of the ifo institute. Coming up, we talk about President Trump and the election. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Francine economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua, here in london. Thes get straight to Bloomberg Business flash. He is here is leighann gerrans. Owner is tiktok appealing to president prompt trump from from banning the video app. Who will own what in the new global tiktok is still a contentious issue. Italy expects debt to rise to about 160 of gdp by the end of the year. Sources told bloomberg of the new provisional figures which also show the economy expanding 6 in 2021. Finance minister roberto kull terry says he will likely present the autumn budget update and that will be next week. Over in the u. S. No murder charges in the Fatal Shooting of Breonna Taylor. A kentucky grand jury chose not to file indictments against any of the Police Officers involved. A single officer was charged with wanton endangerment for firing into neighboring apartments. The decision has sparked outrage and renewed violence. At least two Police Officers have been shot. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more im 120 countries, leighann gerrans. This is bloomberg. Francine . Francine lets get the latest on the u. S. Election. President trump has refused to commit to a peaceful transfer of power if Democrat Joe Biden wins the vote in november. Pres. Trump we will have to see what happens. You know ive been complaining strongly about the ballots, and the ballots are a disaster. The people are rioting. Will you commit to make sure there is a useful a peaceful transfer . Pres. Trump get rid of the ballots and you will have a peaceful transfer. There want be a transfer. The ballots are out of control and the democrats know it better than anybody else. Francine reporters asked joe bidens for his response to trumps comments last night. Mr. Biden im being facetious. What country are we in . He says the most irrational things. I dont know what to say about it. It doesnt surprise me. Romney, thett republican senator from utah, tweeted that fundamental to democracy is a peaceful transition of power. Joining me now is leslie vinjamuri. We have never really seen anything like that. Do people care when the president says things like this . Does it have an impact on the upcoming election . Leslie i think they do care. This president is always talking to multiple audiences. He has been doing it for a very long time. If you read the article in the atlantic last night, by the end of the summer he was making four requests a day on mailin voting. It is part of his effort to undercut the legitimacy of the president ial elections. People care a lot. His base probably read that as a safe as a sign that the elections will not be authoritative or legitimate, and it riles up the democratic base, which we have seen is very passionate. A tremendousn amount of political activism, more americans registering to vote. So there are some this is something we have not seen before. Does it actually change the mind of people that are the undecided voters, or does it just entrench his base . If i am in the u. S. , the midwest, and i read this and i say he has gone too far because he is now putting in questions were democracy operates, or do i say hes right, im going to vote for him because this is unfair . Leslie i think if you are talking about independent voters, moderates, it sways a lot of people. At a time where the barriers, the perception of the barriers to voting ri think much higher than in past elections. , in the polls,ng we know that what matters in the states, everybody, francine, on Election Night is going to be waiting to see what happens in florida. And we probably will see something on florida during the night. The margin of victory for whichever of the two candidates will tell us a lot about what will happen subsequently. Could take a very long time if it is close, which it looks like it very well may be. This is going to be a very contentious period. I some scenarios, it could run for weeks by some scenarios, it could run for weeks. If there is a very clear defeat for President Trump and a resounding victory for Vice President biden, i think that is a scenario where we could anticipate a peaceful transition. Nameine we all know her now, Breonna Taylor, the hospital worker shot multiple times on her home on march 13. There have been a number of protests after no officer was charged because of that death. How does that play out into the election . Leslie the black lives matter protests have been taking place in the killing of george foreman, and they have continued. Have not always had our spotlight on them in the global news media, but they have been continuing. There has been an unprecedented amount of violence. People have worked very hard to know that it is not only george floyd, is Breonna Taylor and numerous others across the united states. This is a very significant case. It has fueled and will continue to fuel protests now at a stronger rate, and it will motivate a lot of progressives and democratic voters, and of course if there is violence and remember that the vast majority of protests have been peaceful there is a focused certainly on the right to highlight the violence. This is part of President Trumps effort to make part of his campaign about his ability to bring law order to the streets. That is exactly what has not happened under this president , certainly not because of this president. He has stoked division, he has inspired violence. But this is going to certainly drive voter turnout. It is one of the top issues right now for the electorate. It is going to be discussed in the president ial debates next week, and it is very divisive. I think one real concern now is the combination of the battle over the next Supreme Court justice, the battle over defunding the police and legislation make it very hard to talk about getting anything constructive through this congress before the president ial election, and of course we know this stimulus is critical. We know that a stopgap measure is critical. But polarization amongst the american electorate, the partisanship in congress, as always been bad. Its much worse right now. Francine it is a pretty divided country at the moment, and you mentioned the battle to get an appointment, someone to replace Justice Ruth Bader ginsburg. Does any of this sway polls . Does it sway someone who would have voted for trump to now vote biden or vice versa . Leslie i think the real question is less turnover. There is your question does it sway independent voters . Alreadyependent voters tend to lean republican or lean democrat, so it inspires them to vote. It certainly energizes both Donald Trumps base and the conservatives in the market, who care passionately about the appointment of Supreme Court justices, and it mobilizes progressives. Ginsburg ruth bader will be lying in state tomorrow. Tremendously class, for a woman who had so much extraordinary influence over so many decades, for equal protection under the law. I think what the evidence actually shows, the people who would really analyze this, is that in the end, this does not change peoples votes and it does not driver it does not vote it does not drive voter turnout. This election is different. Some of the elections we have drawn from previous legends might not be the same. We know in the midterm elections in 2018, the fight over kavanaugh certainly on mobilized and energized and increase the passion with which voters took when they voted. Yet to come. A lot remember that americans are sitting at home right now, they are working at home. We know this from zoom calls dogs and their children are coming into the background. They are frustrated, they want to see america get back on its feet again, so i think the pandemic will be the number one issue that drives americans when they turn out to the polls, what do they think of this president , and do they trust the president to move the country forward . Or do they want Vice President and his team to do that . Francine what about the republicans . Because of the division, because of these very emotional subjects that we have just touched, are we going to see a splintering of the Republican Party, or are any of them question whether trump should be there candidate . Leslie this has been the question. What has happened to the Republican Party . The party of dignity, of free trade, of internationalism, the party that has been behind the president for most of these four years. The question of the Supreme Court justices. We dont even have a candidate announced yet. Hes going to do that saturday. Already we have the votes in place for that with a couple of exceptions. At least makowski thinks it should wait until after the election. Next president who chooses that Supreme Court justice, shes obviously in a very tight race. There is this broader question of will the republicans what will it take for the republicans to stand up to a president that really simply hasnt represented their style of politics. And frequently not there policies. And if we got to a contested election, would they stand up . One certainly hope so. Francine leslie vinjamuri, head of the u. S. Program at chatham house. Coming up, more with richard clarida. This is bloomberg. Francine this is bloomberg surveillance. Lets get straight to the Bloomberg Business with leighann gerrans. Leighann j. P. Morgan is set to pay close to 1 billion to resolve u. S. Market manipulation investigations. Sources told bloomberg of the potential record settlement involving alleged spoofing. It could be announced as soon as this week. It would end caused by the Justice Department and industry regulators into weather metals and treasury traders rigged markets. Westpac is paying a record fine of 1. 3 billion trillion dollars 1. 3 billion australian dollars. It costs his former chief executives job. It is the largest fine levied against an Australian Company and it is also more than the 900 million aussie dollars westpac put aside for the penalty. California plans to ban new gasoline powered cars 2025 as part of the fight against climate change. Governor Gavin Newsoms announcement comes as the state is battling historic wildfires. Says californias electric vehicles accounts for half of the ev market. Francine jay powell is planning for more stimulus while highlighting the egg and to recovery. During his second day of testifying before house panel, it pushed back suggestions that the fed favored markets over people in the pandemic. Richard clarida agreed with powell. Richard what we are seeing quite simply is that perhaps in a normal recession or perhaps if we were back in february, then obviously getting to 2 and moderately achieving 2 would be within our forecast to rise, but because of the shock, the economy has to recover. That recovery based to the last downturn will occur within about 3, 3plus years. But until we get to that point, overshooting is just an academic point. We want to get the economy to Percent Inflation and maximum employment. 2 inflationy took and maximum employment. We think that can happen. Fund manager after fund manager has come on the show and said we are at risk of creating an asset price bubble. How does that factor into your calculus about when to tighten policy . Richard that is a good question. Certainly it is an important consideration. We get regular briefings on Financial Stability. We issue a twice yearly report, so we are very attentive attitude to that risk. But its also important to remember, we have a dual mandated assigned congress. If hypothetical we are to become concerned that Financial Stability put our maximum employment and price to bloody goals at risk, then price stability goals at risk, then we would have to factor that in. Our inclination and our preference at the fed is to work with other agencies on regulation, supervision, bank liquidity, and other dimensions than simply raising or lowering rates. For Financial Stability. Lisa i guess another way of asking this is, how effective can the fed be without other support, without financial stimulus that direct aid to companies . Richard fiscal policy is for the congress and the executive branch, but when asked, we will say that we do think additional fiscal support will likely be needed. I think it is very clear that the cares act, which cast in march, which passed in march, was a historic government response to a stork to a historic crisis. The 3 billion package provided significant support to the economy. About 11 million jobs have returned, but there is still a deep hole. We have a high rate of unemployment, a lot of small and mediumsized businesses that are suffering, so additional fiscal support will likely be needed. That was fed vice chair richard clarida. I spoke with the chief executive of u. K. Bank our interview with allison rose is next. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua, here in london. As part of the bloomberg a quality summit, we spoke to allison rose, the chief executive of natwest proof. It is very clear that we set targets. Im a great believer in if you dont measure it, it doesnt get done. So we have a very broad program around helping encourage women coming into banking, encouraging girls to think about banking. I have a program called dream bigger which goes into schools and encourages girls to think about finance as a career, to think about entrepreneurship as a career, to work on resilience and encourage more people into the pipeline. But we set targets at our top four levels. We have a diverse represented board. My executive team now is 30 female, and we have targets set organization to encourage all elements of diversity and inclusivity. As well as elements of you set targets, you put interventions in place, and you create a culture that hopefully will encourage people and allow the talent to thrive. Francine what you did why do you think not enough females join banking in the first place . Is it a cultural thing . Is it a perception . Is it seen as too aggressive . Alison i think historically the Financial Sector has been very maledominated. When i started my career, i joint areas where and i was the in the room. That was the environment i operated in. So i think it starts from having a perception of it being like that, but the culture of banking is changing enormously. We need to do a better job of explaining the fact that you can careers than in one organization and how exciting it is, and then create cometure where people can here. We have increasingly seen more women come into banking. We need to back more women into a executive position so that they can make a difference so that you have a diverse workforce. Seeing diversity, its fantastic getting different perspectives, different challenges, different creativity which makes it more competitive. Making sure that we can really articulate the attraction of this industry, i think will encourage more women to join. Francine do you get pushback with some of these initiatives some of the things that youre trying to do and change . Geton no, a lot of what i when i have driven diverse debates in the cultural change why am i not attracting more women, why do i have an exclusivity problem, how do we address this . A lot of it is unconscious bias. We have to look at talent in a different way rather than through the lens with which you would typically look at it. Typically i dont get pushback. I get asked, how can i get the best talent, how can i get help . Explaining the Business Case come in explaining debbies point of the Business Case, expanding the imperative explaining the Business Case, explaining the imperative. Francine that was alison rose speaking to us yesterday as part of the bloomberg equality summit. The Aviation Industry leaders are coming together at the Virtual World aviation sector as the space faces unprecedented disruption. There is also quite a lot because the Turkish Central Bank will announce its latest policy decision. It is expected to hold his benchmark rate at 8. 25 , and also this afternoon, the chancellor emma rishi sunak, would give a statement on the u. K. Economy and more measures to support the economy. In the u. S. , we heard from fed officials after two days in front of the House Financial Services committee. Jay powell and Steve Mnuchin faced the Senate Banking committee to get their quarterly cares act report to congress. In the meantime, this is what the market is looking at. A lot of the focus is of course on the valuation that we had over the last couple of days. A lot of the focus is on what we heard from the u. K. As we expect rishi sunak to announce something to put in place to actually support the economy and some of the businesses because we know of what we know about the businesses. Well dropping below 40 a barrel. Stocks are falling, officials warning in the u. S. From the Federal Reserve that more fiscal stimulus is needed to sustain the economic recovery. 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 grim tidings. Markets slump as warnings from the fed on the need for more stimulus ignite fresh jitters. Powell and mnuchin take the stage again today. President trump refuses to commit a peaceful transfer of power postelection. Hes currently trailing joe biden in national polls. The election is 40 days away. And rishi sunaks winter economic plan is coming. The chancellor will set out a new crisis plan to protect jobs today. Measures could include extending employee wage supports. Good morning and welcome to bloomberg surveillance. Im Francine Lacqua in london. Tom keene is in new york. It was pretty stunning to hear that from the fed. I guess not supporting the markets because they worry about Monetary Policy come of the essential the second phase of Central Banks that they were talking about and what they can do on the physical front. Tom there is so much going on, you wonder what is the cause or the effect and maybe the recause. As we were talking yesterday, across all of surveillance, the United Kingdom clearly out