Also up on the s p. Thend pingpong and pound pingponging around today. I think it was a reuters report talking about the fact that we hadnt made any progress in the brexit talks. Then we got the legal action and the fact that there was a landing zone, particularly on state aid, and that fishing was the only area that we didnt have a deal done. Subsequent to that, we start to see the pound rolling over again. We did see commodities generally do well last month. Crude down, burned trading just north of 40 brent trading just north of 40. Alix nancy pelosi is having a press conference, saying she is talking about how to go forward on really else. She is still ash really ills on relief bills. She is still hopeful, going against the report that she was skeptical. Euro still trading up 0. 3 . U. S. Is politics in the the European Union is starting Legal Proceedings against the u. K. The move was announced by European Commission president ursula von der Leyen Urszula by European Commission president ursula von der leyen earlier today. The provisions have not been removed. Therefore, this morning the commission has decided to send a letter of formal notice to the u. K. Government. This is the first step in an infringement procedure. Alix joining us with more from brussels is bloombergs maria tadeo. What does all of this actually mean . Maria i would point to the words of the finance minister of the netherlands. He said this sounds like it is very serious, like perhaps it could be a dealbreaker, but in reality, it is not. This is part of a procedure we all knew was going to happen. The europeans are dead sure this is a breach of international law, and if this were ever to go to court, they would win the case. But at this point, they see it as something that was obviously going to happen. Yesterday, the u. K. Had to pull this bill. That didnt happen. The eu is now threatening to take legal action, and has given the u. K. A month to come back with a reply to their concerns. Negotiationty, the is very much is still ongoing. It doesnt mean that there is going to be no deal on this, and it doesnt mean that talks are stopping. It just means that this is very predicable. The eu is a rulesbased organization and they will take action. The talks are very much ongoing. Guy lets talk about one of the other subjects everyone is paying so much attention to, the eu rescue fund. What else are you hearing in terms of rock rest or no progress on that . The germans are talking about it being delayed. What kind of delay are we thinking about here . Maria for the europeans, today is just as big as anything related to brexit. The deal was this is going to be operational by january, 2021. This is something that a country like italy really wants to get going quickly, and by mid22 anyone, the funds by mid2021, the funds would really start to flow. The eu wants to mix or that the money that would get paid over will be used appropriately, but also that countries are going to stick to fundamental democratic rights. That is fundamental when you look at a country like hungary and viktor orban. Theres paper that hasnt flowed yet to try to get to a compromise, but there is no indication that we are going to get there tomorrow. If there is no break in the next few weeks, the idea that the Recovery Fund could be delayed will be a very real threat. Guy maria, thank you very much, indeed. Joining us now here in london is james athey from aberdeen standard investment, and investment director there. You are short the pound, so lets talk about what is happening in the u. K. Even if we get a deal and theres all kind of rumors flying around today, would you still be comfortable with that sort is it with that short position . What are you expecting from a deal . How good could it actually be . James good afternoon. It is really the sterling short we are running that is as much about the process to get to a deal as it is about the outcome thereafter. We are somewhat skeptical as to how smoothly this last stage of the process will go, and we really dont think the market was accurately handicapping the risk of it becoming as messy as we are seeing today. The noise versus signal on brexit is always high. If we were to get a deal, we would still believe that would be at the low end of expectations with regard to how economically significant that would be in the medium to longterm, but it would certainly deal with some of the shortterm disruption. But given cable, the short explicitly is really something which we would expect to be managing in this process. Alix what kind of deal would we have to see for you to close out your short and go along . James mediumterm, i am bullish the u. K. , and i think sterling is very cheap, so as i say, this very much is more of a tactical position reflect in the fact that those risks are being priced. It is difficult because what could be in the deal is so complicated. The fact that there will be a deal, if that is what we are talking about, the fact that we could reach an agreement on things like fisheries and state aid suggests that there is some nearterm positivity, and that would definitely be something we would have to consider with respect to sterling position. The biggests of impact for a deal, clearly the u. K. Will be getting some benefit from it. How much uncertainty would it remove from the euro zone, and how much of an impact would it have an positioning within the euro zone . We were talking to a guest from Charles Schwab earlier on that indicated if we were to get a brexit deal, that would be another reason to buy european assets. James i definitely wouldnt be in that camp. Ive always been of the opinion that the obstruction in that trading relationship would be more impactful for the euro zone then the u. K. I know that is not a popular view, but my analysis of the situation does differ from the consensus in that regard. It is not good for either, certainly, any shortterm if we have very disrupted outcomes. But it is important to give you my thoughts quickly without getting into the weeds. There is a difference between trading agreements and a deal with tariffs, versus the facilitation of trade and removing some of the frictions which might occur at the border. It is very difficult for me to give a short answer. I would need to see the details of exactly what was being agreed. But we do purchase an awful lot of goods from the European Union, and we do sell them an awful lot of services. It is on the basis that i think some of the highlevel analysis maybe doesnt agree with how i would see that situation. But european problems go way beyond just dealing with the u. K. It would be a big Downside Risk if we had a really destabilizing relationship with them in the nearterm. I dont see it as a massive upside relative to the structural and cyclical issues they have to deal with. Alix let me layer Something Else in. If we do get the european Recovery Fund coming through, and we are still stuck in the stimulus conversation, furlough conversation in the u. K. , does that shift your view at all . James the Recovery Fund is small, and it is not going to be implemented until, at the very least, the middle of next year. You are talking about a sixmonth ratification process to get that through parliament. It needs to be passed in all of the commission, the brussels executive branch, if you like, to be able to raise their own resources. It has to be ratified by every national parliament. That process could take up to six months. We still havent even agreed, and we are seeing in the Public Domain that some of the issues needing to be ironed out before they go forward and start that ratification process, and then, even if it goes according to plan, the plan for how that money will be doled out suggests theres not too much going to countries in the early stages. 2023,of it is backloaded, 2024. The fact that there is some sort of agreement to a Recovery Fund has been welcomed as being a game changer, a hamiltonian moment. That is not really the case, not just because it is small and a long way in the future. It is covered with conditionality. It is spreading a decent amount of money across a lot of countries across a lot of time. I dont believe it sends the signal that a fiscal union or some sort of fiscal transfer are easier to come by now. I think it sends the opposite signal, that a crisis of this magnitude was not sufficient to enable the politics on the ground, to enable the governments of the various nationstates to agree to that sort of fiscal transfer. Has 3he euro zone now trillion euros of excess liquidity within the system. 3 trillion. Ive got a chart here which shows it. Youve got to get to the point where you Start Talking about a liquidity trap in europe, if we havent been there already. That really just emphasizes that Monetary Policy may not be pushing, and that fiscal needs to deliver. We are unlikely to see yields rising anytime soon. What is your assessment of what that 3 trillion tells us about where the eurozone is . James it tells you that we have been relying heavily on Monetary Policy to deal with issues that Monetary Policy is not capable of dealing with. Ultimately, you bring demand from the future forward to today , but you have to pay it back in the future. The only reason we are not is because we continue to expand on Monetary Policy via Balance Sheets in place of rates. At some stage, that has to come to an end, but in the short term, it just means the world is awash live is awash with liquidity. Policy relies on behavioral aspects, which is that you change the price of something, and that will change the behavior. Unfortunately, we are seeing that is not the case. I would argue that fiscal policy is not necessarily the answer either. I think fiscal policy is too broadbrush a statement. Spending is not really influencing the mediumterm growth trajectory for economies. It doesnt deal with potential growth. Investment over time is a different matter, but where fiscal policy is current spending, that really isnt changing the mediumterm trajectory. The euro zone has structural issues because of the nation of the union, and trying to ameliorate those or mask them with Monetary Policy is completely divorced from the reality. Alix and on that positive note, we will leave it there. James, thanks a lot. James athey of aberdeen standard. Coming up, Charles Goodhart, former advisor to the mike of england. We will get his insights to the bank of england. We will get his insights on brexit and a Central Banks are being asked to do policy that they should not be allowed to do. And we are getting headlines that crossed from Nancy Pelosis press conference. She does think that the house will vote today, and that she did have constructive talks with steve mnuchin, but there is still no agreement on parts of a release bill of a relief bill. S p futures up by 0. 2 . David westin will be speaking with nancy pelosi at 12 00 p. M. Eastern, five atop p. M. London 5 00 p. M. London. This is bloomberg. Guy welcome back. Nearly 16 minutes past the hour. You are watching the european close on bloomberg markets. Lets get more insight into the tensions that we are seeing between the European Union and the u. K. Over brexit. Charles goodhart, emeritus professor at the London School of economics and former advisor to the bank of england, joins us now. Thank you for your time today. We still dont know whether we will get a brexit deal. If we dont, do we get negative rates from the bank of england . Charles i should be extremely surprised, indeed rather dismayed, if thats what happen if that should happen. I think that would be quite the wrong response. If we get a hard brexit, there will be exporters who are quite badly hit. We could certainly face 40 tariffs for exports to europe. But easier Monetary Policy and negative Interest Rates would do absolutely nothing to those who are certainly had by much worse tariff barriers, and their trucks get stuck on their ports on the way to europe. Record nothe the right response. One might say the opposite is even more likely. Because if you go along with a hard brexit, which is probably at this moment not fully taken into account in markets, the pound would probably fall and could fall quite sharply against other exchange rates. Whats more, if pound started to fall, the normal response is actually to raise Interest Rates. Under present circumstances, with a massive amount of debt outstanding, a lot of companies being in a very fragile financial position, raising Interest Rates is almost unthinkable. I think the balance of pressures would be that a hard brexit would be followed by absolutely zero movement on Interest Rates. Alix is there a possibility that the market is going to force the boes hand if they start aggressively pricing and more negative rates . Charles no, i dont think so. I think it is quite capable of Holding Short rates where they are. I see no likelihood of the market forcing the bank of england into an unwanted change. They killed the idea fairly clearly in a comment a couple of days ago. Certainly, i think that a hard brexit would make the idea of negative Interest Rates even more unlikely because of the effect that they would probably have an exchange rates. Guy covid is the other thing we are dealing with right now, and the response from Central Banks has been to cut rates, but more importantly, to amp up qe. We have seen the ecb delivering significant amounts of money into its Banking System via the tltro. We got 3 trillion of excess liquidity within the euro zone. The banks have so much liquidity , and yet there is no demand and no desire, it seems, to lend that money out. Are we now at the point where we are in a liquidity trap, and further liquidity will simply not help . Why isnt this proving to be inflationary in the way that we would have expected, judging by the textbooks we were all taught a little earlier on . Charles it is not inflationary because theres enormous cautionary demand for money. People dont know if they will be in their job in a couple of months. Companies dont know what kind of demand is likely to affect them. I think you are wrong when you say there is no demand. Corporatesding to has gone up quite strongly in recent months because corporates are not using that money, except to score a little way against that possibility against theit away possibility that they might not see incomes for a long period of time. The question that i think is a fascinating one is what is likely to happen should there be a vaccine, and the whole pandemic concern becomes less acute . If uncertainty goes, what will then happen with all of the available money floating around . Guy and what do you think would happen in that scenario . That thei think Central Banks are underestimating the degree to which a quite considerable collection of forces is going to mean that it is not going to be lower for longer, that inflation is going to return, that inflation may return with a vengeance. Have just written a book called the great demographic reversal, which sets out some of the forces in the retreat from globalization, see retreat in the population and the strengthening of the Bargaining Power of labor, which is going to mean that rather than having very low inflation continuing, we are likely to have recurrence of inflation. Some of the monetary and fiscal measures that have had to have been taken because of the covid crisis is likely to bring that forward and make it even stronger. Whichbased on that, country is going to get hit with inflation first . Which country is going to blink first and hike rates . No one is going to want to be the first mover in that environment. Charles it is very difficult to tell which country is going to be hit first. Probably the u. K. Is likely to be quite near the front, again because i think the Dollar Exchange rate is going to be subject to quite severe downward hard exitf and when a or no deal should actually take. Actually take place. Guy thank you very much, indeed, Charles Goodhart of the London School of economics. Thank you very much. This is bloomberg. Alix you are looking at nancy pelosi, the House Speaker giving a press conference, talking about stimulus. She says she did have productive talks with treasury secretary steve mnuchin. She does hope the house will vote on the democratic bill today, but still nothing concrete coming out of d. C. This is really, truly a lastditch effort to get the stimulus going. How do you get that 1 trillion to somewhere you can scale up and keep everybody happy . Guy it is state and local that seems the biggest gap probably exists at the moment, and there are significant gaps still between the two sides of that particular issue. David westin is going to be talking to nancy pelosi a little later on on balance of power, so hopefully we will get more clarity from that in terms of where the problems lie. Nancy wrapping up that press conference as she prepares for her interview with david westin. [laughter] alix she will go prep right now. I also want to point out that she says the gop seems wedded to the tax cut for the wealthy, and that she hopes they would be open to an earned income tax credit. That t is the minute ae. Men knew she the minut guy still some ways to go. It is critical, somewhat argue, that the u. S. Economy needs this now. Ftse is up, cac is up, decks down. Dax down. The european close is up next. This is bloomberg. Jonathan 30 seconds until the end of regular trading in europe. We are up but we have been fading throughout most of the day. The morning going sideways. We faded through the afternoon. We have seen political tensions driving things. Certainly the stimulus story in the states striving the afternoon session. Up. 2 . Lets see how we go through the auction, whether we finish in positive territory. Seeing pingpong from the pound. Lets see what sterling has been up to. Conflicting headlines driving sterling all over the place. Moved lowerchart first thing this morning as there was a report suggesting talks were making progress, then there was another report suggesting progress was being made. We have seen legal action being taken by the eu against the u. K. As a result of the moves the u. K. Has made. That is the movement. That was the one day change. This was the two day chart. Ftse 100 up. 2 . Not reacting much around the rollsroyce coming down sharply. Taxes lower. 4 . Basically starting in so many ways as waste start off in so many ways as we start off the fourth quarter. Lets look at individual stocks. A 5 billionas Restructuring Plan being put out. Good for bonds, bad for equities. The 10 move to the downside on rollsroyce. This goes back to the general bridge collapse, it looks like likelylian government is to strip the family of the highway concessions. Bayer under pressure. We spent a lot of time talking about bayer and the roundup story. Lets talk about them monsanto story. Buyer is trading down 12. 40 8 as a result of that. Pandemics are the top concern for amsurg professionals over the top five to 10 years. This is due to a new study from the french insurer actually a. Other concerns like cybersecurity, geopolitical social, and macro did as well. Earlier we spoke with the ceo. Risks we have done this report for the seventh time and have a very good view on how the positioning of risks have evolved. What we have seen as climate risk has been for a long time the top risk, and due to the tragic and unfortunate context of covid19, the health risk has taken can the first place. In the long run, the climate risk should remain the number one risk because it is the risk of many other risks we see, be it on the health side, be it on the question around social tension, but also on the question around geopolitical issues we live every day. Personally, i do believe the climate risk is the number one risk position. Alix i wonder what we learn from the pandemic in terms of vulnerabilities on a geopolitical level as well as a Health Care System level and a Poverty Level that also translates into the risk Climate Change will bring. Thomas it is absolutely true, because the issue is those risks cannot be seen anymore. They are very much interlinked and we have seen exactly this in the pandemic. If you look, the pandemic has shopped health systems, has certainly shot countries that do not have the means to provide a social cushion and have certainly fueled geopolitical tensions because of the interconnectivity of our world today. All of these risks are more complex and more interlinked and it makes it more difficult to say how can we find solutions in order to protect us against them. Guy lets talk about how the industry has choked during this period of accelerated change has coped during this period of accelerated change. Deliveredalk not for the customers in the way that has anticipated. Do you think the Insurance Industry is doing a good job now in serving its customers and how does it need to change as a result of what we have learned during covid . Thomas we were in a situation where we are now faced with new risks we have not seen in the past, and risks we also have never ensured in the past. Expectedrefore to be that you come into a situation where the industry has paid for what it was covering when there were ambiguous situations because you cannot always foresee everything. Xa has made a big effort in making sure we solve those situations to the benefit of our customer, and then you have a residual risk because we are talking about the Systemic Risk. It is not a health risk where one out of 10 people get sick. Here everybody is potentially sick and countries were basically it is called a Systemic Risk and we need to find new ways of public and private partnership in solving for those questions that have never been on the table. This is also one of the reasons we have been proposing a new regime to cover those risks, which is very much a public and private partnership between the states and the private actors to make sure we are better ensured and protected Going Forward. You are huge Portfolio Managers now faced with a situation where you have to raise the risk in the portfolio to generate a return. I am wondering if the Insurance Industry is company is comfortable with that, and i go back to your previous answer in terms of socializing risk, and doesnt mean the cost of insurance are likely to have to rise as well because portfolios within insurers are not generating the returns they want to . Thomas it is clear this situation has led to even lower Interest Rates. We are already in a phase before the crisis in a phase of lower Interest Rates, and now it is lower for longer. This means we need to think about our product compositions, how can we still create an offer Attractive Solutions for retirement in a low Interest Rate environment . The desire of people in a more aging society for better Retirement Solutions has not dropped. That is the one thing we need to do. Secondly we need to see how we reprice our products. The Investment Income is certainly one part of the entire way of making sure we can cover claims and the risks, and therefore if there are lesser risks, it will mean we need to increase prices. However, i would look at the question of low Interest Rates more at a macro level and more again at a societal level, because what does it mean . Low Interest Rates or Interest Rates at zero are essentially a text to the saving population that will have difficulty to ensure the retirement is sufficient. With the demography we have, we will probably run into a social topic around Retirement Savings and retirement funding. Alix the other part of that is the market for green bonds that is getting developed in europe. What is your demand for that and how do you think that market will develop and feed into the thesis you were just talking about . Thomas it is a fantastic way to use the prices to push transition. I was glad to see the European Recovery Program is facing the financing on 30 of green bonds. I believe leveraging the rebuilding to be more sustainable is great. We started this early this journey early by going into green bonds. It is a very established market and strong market. What we need to make sure Going Forward is the market is well defined and there is no danger of what i would call a greenwashing. It is when we buy green we know it is green and will remain green. Axa ceo talking to alix steel and i earlier on. He thinks we are taking our eye off the ball. Risk and covid is a the bigger risk remains Climate Change. If we take our eyes off the ball that will have significant consequences. Europe seems to be stepping up. Elsewhere the view is retreating that Climate Change is the number one priority. Alix i found that interesting. I wonder how that might stack up now that china is pledging neutrality by 2050 or 2060. There are issues in terms of specificity. In the u. S. We are lagging behind that. A lot of that hinges on the election. Guy absolutely. Fascinating to see how much catchup will be possible in the united states. The outcome of the election critical to all of this. Fascinating to see what has been happening in california and elsewhere and trying to come at a state level, drive some of this forward. Spending can be a big deal and the next 18 months. As we were talking to our guest earlier on talking about the market has to front run that. Alix exactly. The question is how do you distribute it and you do it with subsidies or is it pumping money into the system . Maybe the u. S. Would be better at that with a biden presidency and when there is still a blue suite when we are struggling a blue suite when we are struggling to get the euro it will drive the thesis of whether you by the u. S. Or europe. Guy lets take a look at where europe has closed. Ftse and cap both higher on the day. Ftse and cac 40 both higher on the day. Dax a little lower. I think were just waiting for news on the stimulus out of the united states. Nancy pelosi will be talking to david westin on balance of power. We will take some of that interview on the table show at the top of the hour. Critical moment in terms of that stimulus negotiation. We will do that on dab Digital Radio in the london area. Jonathan ferro and i will be taking you through that. This is bloomberg. Ritika this is the european close. I am ritika gupta in the principal room. Coming up, Brian Moynihan at 3 00 in new york. This is bloomberg. Lets check it on the bloomberg first word news. Russian Opposition LeaderAlexey Navalny blames Vladimir Putin for poisoning him. He told a german magazine the russian leader is behind the crime and i do not have any other version of events. The kremlin has denied responsibility. Today it said navalny is taking orders from the cia. Shows restrictions on social contact may be helping slow the spread of the coronavirus. Research from Imperial College london tested more than 80,000 volunteers last month. The result show the virus is still spreading, but not as quickly as it had been in august. 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. I am ritika gupta. This is bloomberg. Guy thank you very much, indeed. Lets talk about the eu summit getting underway. Theany is warning delays in eu Recovery Fund may be unavoidable and the fund will not be operational by january 1, which was the target date. Minister of law conditions. Part of the package is the rule of law conditionality, which is now being put on paper, details hammered out. It is not unusual at that stage you have some debates about the nittygritty details of what is being put on paper. Now a german proposal to come to an agreement and the council and with the european parliament. We think that proposal is not yet at the level we want it to generally we support germany and trying to reach a deal, but we do not think this proposal is good enough, it should be better. Guy mark ruda speaking earlier. Charles grant joining us from the center of european reform, where he is the director. Financial markets got very excited when it looked like this rescue fund was a done deal. Many people, particularly in the united states, thought it was a done deal. Now it seems it is not. How far away from getting it over the line do you think we are, and how big of an impediment do you think the rule of law issue is . Charles i think it will be a done deal but there is serious risk of being delayed by a month toward a month or two. It is very difficult the dutch and the fins, those who are very not very keen on the Recovery Fund are also the countries that care the most about human rights, and they believed countries such as poland and hungary have been abusing human rights, restricting press freedom. They want strict rules into the disbursement of the funds so countries which do would disrespect the rule of law would not get money from the fund. When the fund was initially agreed a couple of months ago, the wording was ambiguous. Now i have to get back to the details. You cannot go on with the ambiguity forever. Poland and hungary are threatening to veto the entire budget package, and if the conditionality is too tight, too explicit. On the other hand, the dutch and their friends in Northern Europe who care about human rights will not accept unless there is explicit conditionality. There is a conundrum. I think in the long run the eu will do what it always does, find a compromise in the middle. There is quite a bit of brinksmanship. It may drag on to one more summit. Also they will meet again in the middle of october to sort out brexit. Maybe they will resolve the Recovery Fund then, in which case there would be a small delay to the implementation of the Recovery Fund. Alix what is a middle ground . What can both sides say to take it back to their governments but also make both sides happy . Charles a lot will depend on the Precise Voting rules. If the commission will make a proposal to withhold payments from countries which it considers are breaching the rule of law, then how was that decision going to be taken . The division makes a proposal and the council decides. A lot will depend on the voting, but mr. Rohrbaugh needs to go back to hungry and say mr. Orban needs to go back to hungry and say will not get clobbered, and mark ruda needs to go back to his constituents in the netherlands and say the countries that abuse the rule of law will not get money from the Recovery Fund. Both countries need a victory from this, some form of words to give them a victory. They may have to have another argument later on. Guy there was this idea this was the hamiltonian moment for europe. Does this disagreement disabuse us of that idea . Charles in terms of the politics of the eu it was a very thertant moment because done quite well from the euro zone and are less affected by the covid crisis, and the southern countries who have had a lot of economic problems in have been worse affected, the tensions between them getting acute and support for the eu was diminishing in italy. In a sense it was a hamiltonian moment because it showed a commitment by the north europeans, including the dutch and the germans to do a oneoff transfer of money to alleviate the problems in the south. That is a radical step. It is the most important step since the creation of the euro in 1999 the fact it has been delayed does not mean it is not a moment. You can argue about the details. Some macroeconomists point out the size of the fund is not that big compared to the size of the european economy and will not have a massive effect compared to the impact of the covid epidemic, but in italy the principal is established that Northern European countries are sometimes able to engage in transfers with the south to help their southern brothers with their problems. That is quite important. Discussion is starting on turkey and turkey sanctions. How bad our relations with turkey and if they continue to deteriorate, are we in line for another refugee crisis, or worse . Torles turkey is holding on a few million refugees from syria and other places and has been nice enough from the european point of view to not push them across in degrees. In return for several billion euros worth of payments from the eu. Hat deal has held it has worked and turkey has held onto the refugees. If relations with turkey get too bad, there is a risk turkey will find excuses not to hold those refugees, encourage them to swim in degrees, which is what it did in february for a while. That is why the eu is reluctant to impose sanctions on turkey. It fears the refugee situation will deteriorate and fear is a bad impact on domestic turkish politics, where opposition to erdogan has grown in the Opposition Party has done quite well. If the eu is seen to bully turkey, that is playing into erdogan. He says the world is against us, my turkish nationalism is the only way forward. The eu is reluctant to take steps to impose sanctions. The trouble is turkey is behaving very badly and if it does not impose sanctions on turkey, than the sanctions on belarus get blocked, and cyprus which sees itself as a victim of turkish aggression is still vetoing sanctions on belarus, s to imposeu want because of the electoral fraud in the human rights abuse in belarus. This is a difficult conundrum. Alix especially if they want to scale up that Recovery Fund. Charles grant, center for european reform director, thank you. This is bloomberg. Ritika time for the Bloomberg Business flash. Suingegian company is reddish online growth in tech company up auto, accusing it of patent infringement. Smart platformto was built on its automated storage technology. Acato has a partnership with kroger in the u. S. The company has previously denied infringing joint there is a sign that the Coronavirus Vaccine from the university of oxford and astrazeneca may be the first to seek approval in your. European regulators have started a speeded up approval in europe. European regulators have started up a speeded up review of the shot. Alix we knew it was coming, but now we have definite numbers from andrew cuomo. He says new york is reporting the most new virus cases since may. He looked at the Positivity Rate from yesterday in terms of numbers coming in at 1. 27 . Total hospitalizations at 612 and we are at 11 fatalities due to covid as well. What is interesting is apparently there is an app being launched that will alert you if you are in contact with someone who has covid, but it will not track your location and is anonymous. That seems complicated. Guy yes. Then what you do with that . Do you side you decide you want to stay home for two weeks or do you carry on with your life . That is the conundrum some are facing. My phone is bombarded with Text Messages from the government advising me to download the app. The problem is Everyone Needs to be on board and everybody does need to be using it. The hospitalization data and the some peoplete of are saying is behind the recent rally we are seeing in those headline numbers. Alix we talk a lot how about is it europe or the u. S. That handle the virus better, and the elephant in the room as it may be asia. How do you deal with that phone Portfolio Allocation . You cannot shut down again in new york. It will be tough. That wraps it up for me and guy. Coming up on balance of power nancy pelosi will be joining david westin. Mnuchin and pelosi talked yesterday, they talk today. It seems more cordial than it has been in a while. This is bloomberg. David from bloombergs World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. Welcome to balance of power, where the world of politics meets the world of business. We begin our program with a very special guest. She is the speaker of the house, nancy pelosi. Madam speaker, thank you for joining us. It was reported you expressed skepticism whether we can get the fourth round of stimulus before the election. Are you skeptical . Rep. Pelosi i am hopeful. It does not mean i am positive, but i am hopeful. We have some areas of disagreement that are broad, but we will be talking again later today. We are still alive. We are still talking, i am hopeful we can reach an agreement. I think that was an interpretation of some remarks i never said i was skeptical. You might describe it that way. You understand the concerns we have for our police and fire and health care workers, sanitati