Transcripts For BLOOMBERG Bloomberg Markets European Open 20240712

From the hospital as soon as today despite conflicting reports from doctors on his treatment and health. Markets recover from fridays riskoff term. France reportedly plans to shut down bars in the paris region as part of new coronavirus measures to be announced today. They warned of a tough winter ahead but equity futures shake off europes spike in infections. Agman Fertilizer Company k s is in advanced talks to sell its morton salt unit to kister group for 3 billion as they propose a review of its indexes including increasing the size of the dax to 40 from 30 companies. Away, just under an hour 60 minutes away, from the start of cash equity trading in europe. Lets take a look at futures this morning. We are seeing green arrows across the board with dax. 75 , and ftse futures gaining almost 1 this morning. If you look at the percent mispriced, we see gains of more than. 5 indicated at the open. Take a look at the u. S. , futures pointing slightly higher this morning, not 1 gains, but more than. 5 . Mastec futures up. 75 . What do you see on the gmm . Gmm. Positivity on the futures pointing to the upside. The Asian Session looking fairly positive. Onere up by one point point 3 . Some markets playing catchup from closure at the end of last week. Broadly speaking, we are fairly riskon across many of these assets. South korean assets doing quite well. The data out of manufacturing and various parts of asia so we saw we are pivoting to something of a riskon stance. Optimism perhaps around President Trumps condition. Is it too early for that . If you leaves the hospital monday, perhaps that adds to some optimism. Hopes of stimulus also in there. We will talk about all of these themes as we go through the program. A lot of focus on that as we head into another couple of weeks of brexit talks after the meeting on saturday. Interesting to see the extent of the moves we are seeing in oil prices. We certainly saw in fridays market response and in todays, a pivot to riskon. Globalconcerns around growth and we saw a big selloff, down by more than 4 in fridays session on wti, now we are up by more than 2 on wti and brent crude. Lets get back to our top story around the health of the president of the United States. Donald trump health remains under scrutiny. The president s doctors raised the prospect he could be discharged as early as today but questions continue over the seriousness of his illness and his symptoms. For more, kailey leinz joins us from new york. So what do we know about the president s condition right now . What is the latest on what his doctors have been saying . His doctors tried to paint an upbeat picture, saying the president is improving and could be discharged as soon as later today, but the remarks were inconsistent and they withheld information. Reporters theld president did indeed receive supplemental oxygen on friday. He had previously said he did not. Point sayingt one his oxygen level dropped to 93 , which would be considered to be a severe case of covid. Forquestion has been given three he has been given drugs. He has been given dexamethasone, k steroid used in morrissey rip patients. Doctors from used for more severe patients. He actually contracted it a lot earlier than previously thought. There remains questions about the timeline about his condition and we are going to have to wait and see if he is indeed discharged back to the white house later today. Good morning. The president took a surprise drive to greet supporters outside of the Walter Reed Hospital. What has been the reaction to that. Heat has taken a bit of for it. Many in the medical community saying by doing that driveby, he was endangering his staff and secret service agents, and using that as another example of the president not taking the virus seriously enough. The secret service says safety protocols were followed. The president did say he had learned a lot about covid19 by going through it, but clearly, that driveby, waving to support us from the motorcade, was very much about getting his face out there, demonstrating his strength the american public, given he is off the campaign trail for the time being. Anna thank you very much. Thank you for joining us. Details as further we go through the program and she will certainly be joining us regularly to give us updates. Lets get to the market reaction. What kind of what do we read into the response we are seeing in equity markets . It seems to be a riskon feeling in asian equity markets and in the futures picture, but as we know, covid can be an unpredictable disease. It can start mildly, if it is at the moment, and it can lead to deterioration. It seems as though we will be watching the president s health for weeks rather than just days. You got it right. We are not out of the woods yet in terms of the pandemic but it was largely riskon today during asian trading. Asian equities arose along with equity Index Futures as markets were flooded by news that President Trump may be released from hospital as soon monday. It somewhat helped boost risk sentiment overall. It remains to be seen whether this is a shortterm boost or if sustainablee more recovery through stocks. Also, there still remains questions about President Trumps Health Condition like how soon he will be able to return to work and if reelection campaign. This action is also taking place despite rising uncertainties amid the november 30 election, and we have seen strong gains, mostly in japan, hong kong, australia, in the stock markets. Chinese markets remain closed for holiday. Also, there are other factors at play. Over is renewed optimism the new u. S. Stimulus deal, a stalemate in the stimulus negotiations, which has been one of major Downside Risks for risk assets like stocks. And trump tweeted from the hospital that the deal needs to get done, and we have heard from nancy pelosi as well. Also, there is potentially matt can i yes . Matt i assume that is one of the things we are watching out for this week because its not all about of course, everyone is focused on trumps coronavirus situation. It is not all about that. We are watching out for other things this week. Sungwoo exactly. There are other drivers at play at the moment. That, you know, there is potentially a perspective that this risk rally has been, you know, archly thanks to accommodative centralbank policies globally and that some people might think that, you know, centralbank support continues to help prop up the economy. Thats good for stocks as well. Fed chair powell is preparing to speak on tuesday. We have got an mliv post saying it will probably be a reminder that stimulus will continue to backstop the market. One of the key focuses investors might be looking out for this , you know, given that the s p 500 index the dollar had been a primary respirometer. We will be watching how dollar and the s p 500 index will perform for the rest of this these rapidlyl changing developments in the u. S. Election. Anna we have not had much time to talk about the fiscal stimulus side of things in the u. S. , but clearly, that has taken on a new light in the wake of recent events and we will talk about that further. Sungwoo park from our markets live team, thank you for joining us with reaction we are seeing in the asian equities session overnight. Up next, the dollar is being pulled in two directions. The odds of a democratic clean sweep in novembers election. We will speak next with the chief fx strategist. This is bloomberg. Matt welcome back to Bloomberg Markets european open. Right now, we are 48 minutes away from the start of cash trading and looking at futures that are pointing up across european and u. S. Equity indexes. Lets get the bloomberg first word news right now. For that, we go to laura wright in london. Reporting that President Trump did not disclose his first positive coronavirus test. He took a rapid test on thursday but waited for the results for a more thorough covid screening before telling the public. It says he knew about the positive test before his appearance that evening. Boris johnson is warning the u. K. Faces a very tough winter ahead. Speaking to the bbcs and thomas, he accepts the public is angry with his handling of the pandemic. His government plans to subsidize dining. It may have spread coronavirus wildfires in california have burned a record 4 million acres so far this year, a bigger area than the state of connecticut. Its more than during the previous three years combined and more than double the previous record set in 2018. Results are devastating. Fires have killed 31 people and destroyed more than 8400 buildings. 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. This is bloomberg. Anna, matt. Anna laura wright in london. Markets are studying this morning on easing fears over president donald case of covid19. Optimism over President Trumps is growing rapidly, prompting buying in the stock market, while the yen is being sold. At the dollar resumed its slide after the dollars riskoff gains. We are joined by the chief currency strategist at dws. Good morning to you. The big picture around the dollar. On the one hand, it behaves like something of a haven, although some people are raising questions about its haven status this time around. On the other, it needs to react to the possibility of a democrat win in november. Certainly if it trades the latest polling data, what are you seeing as the Guiding Force behind the dollar at the moment . There is a lot influencing the u. S. Dollar from this point in time. You already mentioned a few to start with the safe haven characteristics of the u. S. Dollar. I think you can see quite clearly now that it has regained some of the Safe Haven Care mystics. If you look at the yen and the dollar in tandem, dollaryen not doing so much, so the u. S. Dollar is back in the game, and maybe it needs something more to something we saw in march or the big unknown, getting introduced when we saw trump testing positive to really get this reaction back. It is something we have got a reminder that the u. S. Dollar, they have a safe haven characteristics and of course, the election is at the forefront. Its only 30 days to go. Thate, what we learned is trump has been positive for covid. More uncertainty to be digested. From all this analysis we already debated, for instance, that this will be a contested election, we now have so many new outcomes. I have been talking about it to other peers over the weekend. What the Campaign Looks like on both sides. We have seen already the democrats also adjusting in their campaigning. What will do that to opinion polls . We have seen in opinion polls after the tv debate from etc. , picture, we also of course have the u. S. Stimulus package. Maybe this has changed the dynamic as nancy pelosi said. Us tolection debates for look at before we understand whether trump can actually participate. We will still have the fed. Live meeting the election. We will see fomc minutes this wednesday. We will have a lot to digest on the dollar, pulling out in both directions. See as thedo you most likely outcome, stefanie, to the election scenarios . This is much more difficult to say with all the new scenarios in the mix. I would say we could have different likelihoods then we had discussed before friday. Especially i see that what has happened now, we have the whole election on the narrative of the pandemic and this is a topic that trump actually had not talked about. Our assumption so far was based on how did he do for subjects we are carrying towards biden . Now that he has been diagnosed with covid himself, it is a crude maybe it forces him to reexamine his views on the pandemic. With he comes out of it character and this will appeal to voters that criticized him for handling the pandemic before. To be hes getting some sympathetic points, too. We will have to see what adds to the opinion polls, but i think its become more difficult at this point in time to kind of go with the old polling. Anna emerging markets, briefly, emergingmarket fx on this subject on the u. S. Election, how do you position given the range of outcomes you have just outlined just weekly . Stefanie i think it is polluted derisksk prudent to of cross currency peers, especially across currency markets. If you look at such a short timeframe and such a wide area of possibilities now. Anna thanks very much. Stefanie holtzejen stays with us. We will get further thoughts from stephanie on fx markets shortly. Coming up, france plans to shut down bars in paris as the reemergence of coronavirus in europe threatens recovery. We will focus in on this, next. This is bloomberg. Matt welcome back to Bloomberg Markets european open. 40 minutes to go until the start of cash trading. We are looking at futures that are arising across European Equity indexes. Now, in france, the country reportedly plans to shut down bars in the paris region as part of measures to be outlined today. This is as new york city said it will close schools and nonessential businesses and ban indoor and Outdoor Dining in nine hotspots for at least two weeks. In the u. K. , Boris Johnson warned on sunday that the nation faces a very tough winter ahead. It will continue to be a bumpy threw two christmas. It might even be bumpy beyond and what we want people to do is for people to behave fearlessly but with common sense. To follow the guidance, whether national or local. From stefanie holtzejen dws is still with us. Are you concerned about a second wave rolling across the globe here . Concerned. If you look at the statistics we got this weekend, keep in mind, results not always being 100 accurate, especially in germany. They dont even report on the weekend. Look across europe, and we have either on friday or saturday made new records in so many countries. France, netherlands, slovakia, hungary, poland, austria. Spain entered into another lockdown, being the first European Capital to go back in lockdown. The second wave is already upon us, and it is something thats on all the europe concerning movies we get on the side. Keep in mind, the borders are open. Recommendations, you have to sometimes test covid negative to be able to move, but other than that, there is little restriction at this point in time because everybody really wants to avoid the shutdown. Something that is very worrying. Anna yes, indeed. We are looking at infections, worth noting the testing regimes and many of these countries were very different in the earlier part of the year. Perhaps they are not comparable. As we track hospitalizations and deaths, that will be of course much more comparable. Do you think perhaps that this politically will force those who are hesitant around the Recovery Fund for europe to find Common Ground . Stefanie i would hope so, but it is also again, it refocuses the narrative onto the pandemic. This is what we have to deal with. Theres emergency meetings for politicians to deal with their domestic situation. I would hope that it is something that, you know, on tuesday, the meeting with ministers is around the recovery and resilience. This is kind of bringing the nations together. Refocusing attention on your domestic right now because you have to kind of do emergency measures. It will helpif psychologically, of course, to work through this together. Hopefully soon enough, yes. Matt thank you so much for joining us today. Chief currency strategists at dws talking to us about the increased uncertainty. President trump pays a surprise visit to supporters outside his hospital yesterday as questions continue over the seriousness of his illness. Next, we will bring you the latest on Donald Trumps covid19 treatment. An expert from Johns Hopkins says he could be released as soon as today. That is leading to optimism in the markets as a result. European and u. S. Futures both trading higher after a weekend of uncertainty. You can see the president himself in the black suv, waiting to supporters last night in a surprise visit. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open. I am matt miller in berlin. We are looking at futures gaining across the board. Ftse futures are up a 1 . It has been a weekend of circulation over President Trumps health. White house physician sean conley admitting to giving a misleading statement about the president receiving oxygen. In a video, the president says he has learned a lot about covid19 in the last few days. It has been a very interesting journey. I learned a lot about covid by going to school. The real school. I get it. More, we are joined by kaelie from new york. What do we know about his condition . When you look at the treatments he has been receiving , it would indicate his condition is more serious than doctors are saying. Ones not only receiving the treatment but also a store but also a steroid. Medical experts say it could mean the illness is progressing more quickly than expected. Painting aical team more positive picture in a conference on sunday. Despite all of the positive remarks they made, they were inconsistent and they left a lot of details out about the president s lungs and oxygen levels. How is all of this influencing the opinions of voters . And how is it influencing the possible outcome of the election . Getting the picture that the president is off the campaign trail for now while he continues in isolation. Polling shows he has fallen further behind joe biden. Pollbcwall street journal taken shows joe biden has the biggest lead in the campaign. That polling was done before trumps positive diagnosis. A Reader Survey conducted of 10ard shows nine democrats and half of the republicans believe the president could have avoided getting sick so he is not getting any sympathy bumps. The probability of joe biden winning is up to 61 . Markets americans are focusing on the health of the president and the first lady this is anse, infection that has taken the white house by storm. Several people close to the president have also tested positive. Who are some of those key players in the Republican Party . The president s personal assistant has tested positive. And hicks, Kellyanne Conway several other prominent republicans including Chris Christie as well as a few key senators including tom tillis and ron johnson. This raises questions about events being held at the white house including the rose garden ceremony for Amy Coney Barrett as well as Campaign Events. Not everyone has tested positive. Negative test cases including the Vice President , Steve Mnuchin as well as joe biden and kamala harris. Harris and pence are still scheduled to take part in a Vice President ial debate on day. It becomes all the more important now given the president s illness. Thank you. Continue to get back to her for updates as the markets get ready to open. We have seen steady we have seen markets studying over the fearsadying over the regarding the health of the president. Dani burger has more. Dani a lot of the comments im hearing reflect what you are seeing in the markets, a cautious optimism. Fx strategist from a brokerage says the president may be doing better than it initially feared and that is giving a positive sentiment injected into the market. But he added that if the president is not released from the hospital today, that would cause a bout of volatility. Around theme revolves the dollar. Goldman sachs pointing out that a democratic win would probably mean a weaker u. S. Dollar. The chairman says look at what we have seen what the dollar. There is not a big flight to the haven currencies. The fact that we have not seen a rally in the dollar is telling. It means markets are starting to reprice themselves around the increased odds of a biden presidency. The last theme is around stimulus with the president tweeting that a stimulus needs to get done. Core jp morgan and ever believes this has increased urgency after the president s diagnosis. Anna dani burger, t why for that. Ou for that. Cinema world is closing temporarily its theaters. This news comes after mgm canceled the release of the new james bond movie putting the plot pulling the plug on one of the few new movies that were to be released this year. Chinas largest chipmaker says is subject tolier additional export restrictions. It is evaluating the impact which says it could have a material adverse affect on its business. The news confirmed last week. This is the latest tech company being targeted by the trump administration. Suez is backing a potential takeover led by a private equity firm. No details of the deal. That is your Bloomberg Business flash. Matt. Anna. Wright with your business flash from london. A blue sweep in the u. S. Election could benefit european cyclicals according to goldman sachs. We will get your morning call on that next. This is bloomberg. Anna welcome back to the European Market open. 20 minutes until the start of the European Equity trading session. A bit ofes could see an upside. A lot of this hangs on the health of the u. S. President so we keep listening for updates from walter reed. Elliott sally joins us now from singapore with the morning call because investors are also hanging on update from the hospital. A Market Strategist has been writing that as bidens election innnels grow, a lowering could grow. Calltte we are getting a today we are seeing the safe havens trade giving a boost to a lot of the em currencies against the dollar today with the won performer. Could fallllarwon to this years low. Simon says you could you should look towards low yielding asian currencies. Another positive factor is the offshore yuan. Did performed quite well after the first debate. Ont meanwhile, a call cyclicals. What could a blue sweep in the u. S. Mean for cyclical stocks . Sharing bell and Peter Oppenheimer a you could see an upside in cyclicals. The dollar would likely fall in this case scenario. With u. S. Ean stocks exposure could be under a little pressure but they are seeing an upside to value in cyclicals. A blue sweep would also benefit china exposed stocks. No surprise that a contested result would be a risk on event and in that case, you would see a higher u. S. Dollar raising the cost on equity across the market. Anna and what about the calls around the stoxx 600 . What kinds of calls are you seeing around that . Juliette this is a bank of america call that you could see another 10 to the upside. They have cut the yearend numbers. An outperformance of cyclicals versus defenses. Part of the reason for the call is because you could see a second wave of the virus in europe start to fade allowing for a recovery in pmis. There they have reduced their overweight view on the auto sector. Very much, Juliette Saly joining us from singapore with your morning call. It has announced it will suspend operations at all of its u. S. And u. K. Theaters. Affect aboutwill 45,000 employees. The company said in a Statement Released just this morning after earlier news over the weekend around these closures. It is a different story for the movie industry and the cinema going industry in china. Ked in a 30 million despite a capacity limit. He thinks Chinese Consumers are already more than comfortable heading back to theaters. Restrained to 75 thanet we did 25 better our last year which was last year. That is clearly an idiot an indication that people feel safe and they are safe. They want to remove they want. O resume their lives and china in particular, and asia in general is ahead of the western world in that. Smoothly in ae as lot of places as in china. At the same time, around the world, you have a more accident existential question as to whether businesses can survive. Does that mean there are expansion plans in china . I dont think the message for the rest of the world is survival. From the china experience, we know there is pentup demand to go to the cinema. We know that when people feel safe and healthy they wont go. They will go. Do not feel people safe at this point in time. It is not an existential issue. The lessons from china not it hadom this weekend, when hundred 50 million in its opening weekend. 150 million in its opening weekend. When will hollywood feel comfortable releasing its blockbuster movies . Mean in termshat of adding more screens in china . We have done very well there. Screens openlus and we have about another 300 in backlog. We have signed a few deals with china this year. There is great demand in china. As we speak, we are opening new screens. There is a lot of dialogue going on. China is our largest market in the world for imax. To give you a reference point, in north america, we have 400 700 withnd in china, several hundred more to go. The demand is growing there. The Chinese Consumer wants to go to the movies. They are also brand conscious. They want something innovative, the next kind of thing that is forwardlooking. It is a terrifically promising market for us. What other markets are you optimistic about . Well for us inne recent years. I think we have 35 the users open with a backlog. Korea, we just signed a large deal with the largest cinema operator there. Open nowve about 16 and we are opening another eight or 10 in korea. Saudi arabia is a rapidly growing market. There was no cinema in saudi arabia until about a year ago it since it has opened come has been very successful. Think we have 25 theaters slated to open in saudi arabia. Saudi arabia cannot build them vast enough. Europe, once it starts to feel safe again, i think that is a very good market as well. That was the ceo of imax. He was talking about the movie business in the times of covid. We are minutes away from the opening and up next, we will have a list of stocks to watch. Including cineworld. More news about that that will affect 45,000 jobs according to the company. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open. Less then 10 minutes to go until cash equities start trading. Let us that you the stocks to watch and for that we go to dani burger. Interesting developments in germany. Dani new changes proposed for the dax. No specific companies are listed that will be taken out. Is justpoint it speculation. Some of the qualification changes they have proposed one you would have to imagine is a response to wirecard. There will be a new Audit Committee and to those companies that are not compliant, they will have a fast exit from the index. It also says Companies Need more liquidity to be in both and they also say companies with controversial weapons will be excluded. There is one company that would not fit this requirement. They do not say who so there may be some speculation. It could be one company which as you have pointed out is involved in Weapons Systems but so is airbus. And the composition of the index they are proposing to change the dax from 30 members up to 40 members and the other would go from 50 up to 60. Anna it will be interesting to see how they define controversial. There are plenty of other indexes that have more members than 30. What about the Banking Sector in spain . Big couples been a of months for mergers in the spanish banking space. Possible noa official negotiations have taken place according to the report but still they say they will consider any strategic option that maximizes options. Look for that to be on the rise. Matt and of course the cineworld talk. The company saying its closure could affect 45,000 jobs. Dani they do not have any winter blockbusters that can help carry them through. Everything has been played. Issue is thent James Bond Film which has been delayed for a second time. This would affect 45,000 employees. The ceo saying he cannot underscore how difficult this decision was and when key markets have more guidance on their reporting status and studios can bring a highflying of major releases back to the big screen, they will reevaluate. With ouri burger stocks to watch. As we work our way to the start of European Equity trading for another week, we still have concerns about the health of the president of the United States and what that does for the fiscal debate in the u. S. Will be crucial. And we could be hanging on Health Reports coming out of the Walter Reed Hospital or indeed the white house. Even if he makes a speedy recovery, that will still impact campaigning and pulling. Marketsst important for is he did tweet over the weekend that he really wants to get a allal deal done and asked sides to work on a bipartisan solution. The democrats want a 2. 2 trillion fiscal deal. The white house until now has been pushing or a number closer or 1. 6trillion trillion. If markets will be seeing any fiscal stimulus comes through as well as if the president s health improves. We will be back with the market open. This is bloomberg. Anna a minute to go until the start of cash equity trading for another week. May be released from hospital as soon as today despite conflicting reports from dr. Spurs on his treatment and health. Markets recover from fridays risk on term. Bars being shut down in paris. New measures being announced later today. Bank proposes increasing the size of the dax. Increasing the size of the german benchmark up to 40 members with conditions. At whatt us take a look is going on in terms of future. Higher across European Equity futures. Levelse to the highest of the session. Euro stoxx 50 and dax futures are each up a little more than zero point percent. Global macro mover screen shows you a slew of risk assets of across a number of columns. The far left column is the live equity trade. The ftse is already open to come climbing zero point 4 and climbing. Positive market sentiment. Madrids ibex is opened up 0. 9 . Up 0. 8 . Ac 40 is hoveringal indexes around 1 gains and you can see that really across europe this morning. There. Ee gains as we get headlines from ursula the euyen president tested negative on thursday and was tested again today but is currently self isolating as we focus on covid cases amongst the most powerful people in the world. She says she participated in a meeting. She participated in a meeting with someone that tested positive and that is why she is behaving with this caution as well. We are seeing gains. Coming this optimism from the latest updates around the health of the president. His health remains under scrutiny as he stays in hospital for treatment. Say he could be discharged as early as today. There are questions over the seriousness of his illness. Date on the news running his health. s medical team held a News Conference on sunday saying he was doing well and improving and could be discharged as soon as early as soon as today. They were not specific about his lungs or about his oxygen levels. The doctor said that the president did need supplemental oxygen on friday. He previously said that the president was not receiving those treatments. We know the president is on a five day regimen of regeneron as well as a steroid. That is where there is the contradiction. The steroid he has been put on is used for more severe patients. Doctors say the own this could thanogressing more quickly has been shared. A lot of question marks still here and we will see if he is discharged later today. Matt even without being discharged, the president drove out of the hospital in his motorcade yesterday to greet his supporters. He was in a suv. He has received some flak from the drive. Specifically from critics in the medical community who say that by doing that drive, he was endangering his staff and not taking the virus with the seriousness it deserves. The secret service said all safety protocols were followed. Has gotten some negative attention for a. What he was likely trying to do was show the American People that he is doing well. They are not seeing him in public at Campaign Events and probably wont for the next week or so. Anna thank you for that update. Isning us now here in london atl dinning, the cio waverton investment. We are focused in the short term on the health of the president in the u. S. Virus, hasgainst the that reshaped your view of the election . Bill i think the election to us has been in the background. Given the consistency of the lead that joe biden has had in polls and in the betting markets, we are looking for signs that the market is thinking about some of the consequences of a democratic administration. Personally, i think the president getting covid puts it back at the center of the campaign. The president was trying to focus more on the economy and the recovery. The job market improving, etc. But this puts the virus back at the center of it which is probably not good for him given how his approval rate dropped significantly in the spring when the virus first appeared. Matt we have seen the approval bolsonaro johnson and skyrocket after they got the disease. The president seems to be taking some lessons from this. It does look like he is on the mend now. He took a drive yesterday. Said that he could be released later today. Are you done incessantly checking your phone for updates on the president . Bill i am following it on twitter. A lot of conflicting stories over the weekend about exactly when he got it. There are stories that he had a positive test that he did not tell anyone about before he had a more comprehensive test. There is some confusion about what is going on. We dont wish anyone but Better Health so if he gets out today, that would be good but in terms of the reaction this is slightly different than the case with Prime Minister Boris Johnson. I think there was genuine sympathy for him though he has not taken the approach that the president did. The president has been very skeptical of the china virus. Debate in cleveland last week, his staff and family did not want to wear masks at the cleveland clinic. To be as dismissive as he appears to have been about the virus and then to have it affect him and the first lady and so many of his staff, i think it is then onent scenario where the Prime Minister has been battling this and then gets it. Gether or not this will enough sympathy to change the polling picture which looks as though biden has a solidly, i would be rather skeptical about that. Focus on the Underlying Health of the economy in those locations. The headline across the bloomberg says cineworld shares have opened and the share price down by 57 compared to the close on friday. This after the news that they plan to close u. S. And u. K. Theaters. They are talking about substantial job losses. About thes questions state of the economy in the u. S. And this links with President Trumps health because he has been tweeting from his hospital corridors talking about fiscal stimulus and the need for fiscal stimulus to get through this. Have i do think there is a possibility that we get an agreement. The president getting the virus puts it back on the front page, at the top. I think it will have an effect. You are already seeing stories over the weekend in places like new york city talking about closing schools again in certain areas of the city. These rolling, partial lockdowns happening in the u. S. And over here in the u k and europe suggest that we will be dealing with this on an ongoing basis and coming months and that seems to be what governments are planning for. I do think that raises the possibility that a fiscal stimulus might be more likely in the sense that getting something done ahead of the election was probably not a bad policy given there is a possibility that some of the Economic Data does start to reflect on the fact that people are probably going to continue to be social distancing and being careful. And i think the president getting the virus is a positive for trying to get a fiscal stimulus done which would have to be done this week if they can do it. You forill, thank joining us and we have more questions for you, bill dinning, the cio from waverton investment. Weeks up, with only two before the deadline for the u. K. Goal,ministers significant divide still to bridge. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open. 12 minutes into the session and looking at 1 gains and more on European Equity indexes. Industrial goods up more than 1 . Let us get the Bloomberg Business flash. Laura wright in london. Laura cineworld is temporarily closing all of its movie theaters in the u. S. And the u. K. Losing about 45,000 jobs. The news comes after the cancellation of the new james bond movie. To warn the said delay of blockbuster releases is making the industry unviable. Will haveed company an annual revenue of about 1. 8 billion euros and the market value of more than 15 billion euros. The deal could take more than a year to complete. That is your Bloomberg Business flash. Verio of intense brexit negotiations begins today following a call on saturday between Boris Johnson and the Commission President in which both renewed their commitment to getting a deal. Keyr compromises on the disagreements of fishing rights and state aid are still needed. Bill dinning is still with us from waverton investment. Draw a distinction between the shortterm and the volatility we expect to see in u. K. Assets around the brexit headlines . Certainly the macro issues around u. K. Politics and around brexit have been one of the factors i think has oppressed Certain International investment interest in the u. K. Which has a slightly depressing impact. The u. K. Market has a lot of bad news priced into it. Issues around the structure of the u. K. Market and Companies Including the Energy Companies and banks and Material Companies are not places investors want to be at the moment. We feel the u. K. Market has a lot of bad news in the price. The underperformance of the u. K. In the last few years has been pretty excessive. And there are some worldclass businesses here in pharma companies. We think the u. K. Is on our radar. Brexit isappens with important. If we cannot get a deal, we will probably have a wave another wave of the sale of u. K. Assets. Pmi missingservices by a long shot. 42. 4 . 42. 6 . St for the composite pmi falling to 42 point. Some headlines from the spanish economy. Bill come youre talking about the u. K. Economy and brexit. I know you like some u. K. Stocks including shell. Think like stocks you will not the at all affected by brexit . Or are they so undervalued . Bill the first thing that has is it is attention dangerous to compare valuation measures across borders. Four years ago, the u. K. Had the highest priced ratio. If you look at the individual companies, a company like shell has been a poster child for everything investors have been wanting to avoid. There were also some individual decisions made are the company that have not been appealing to investors. But this is a worldclass therey and i think should be a change in tone in terms of what investors want out of their portfolio, then i think shell is well positioned for that. This is a worldclass business that we continue to think will grow well. We think there are opportunities in the u. K. And increasingly i think investors may start to look at that particularly if there is broader rotation in the market. Valued. Is seen as a player. Thanks very much for joining us. Bill will be joining us in conversation on bloomberg radio. Matt was breaking the services pmi numbers in spain. The corporate sector also has some interesting stories. Of aonfirmation talk about a merger. Spanishation within the Banking Sector has been a theme for some time. This would create the countrys seventh biggest bank. They failed a year ago partly due to differences over the shareholding structure. Ofwill see of the pressures the Global Pandemic can push things through this time around. Coming up, global infections surpass. We get an update coming up next. Matt welcome back to Bloomberg Markets. This is the european open. We are 21 minutes into the session and looking at big gains across European Equity indexes. Up 0. 7 . 600, some of the Industry Groups are making headway. Autos up 1. 7 . Bank stocks up 1. 8 . As a part of the broader stoxx 600 index there. Dani burgerer to who has the story on the possible expansion of the german dax index. Dani that is one part of it. There are two buckets that the owner of the dax has proposed. To 10 moreld move members. Proposals areion very fascinating. It is hard to see this not being a response to a wirecard. There would be a new independent Auto Committee which would look at the accounting processes for companies as well as risk controls. And if the companies are noncompliant, they will have a fast exit from the index. There will also be new profitability requirements as well as liquidity. Accusations ofrd fraud occurred come it took itut two months before was pulled from the dax. Another requirement being proposed is a ban on any Companies Involved in controversial weapons. It is unclear which companies that would be. They say there is one company that would be excluded if they introduce this screening. But a lot of companies are involved in the manufacturing of Defense Systems including airbus. We are not totally sure on who that will be yet. And these proposals will be decided over the coming months. Much, danis very burger. Infections have surpassed 35 million. New york city is closing businesses and schools in nine hotspots. And paris will shut down bars for 15 days. Is warningon britains of a tough winter ahead. Joining us is the director of research from bloomberg intelligence. The very good to have you back on with us. U. K. Officials confirming that thousands of positive cases have been missed from the test in september. Tests in september. The chief scientific officer cautioned comparisons. Regimeserent testing are clearly important and what really matters is if we see the hospitalizations to reflect the infection rates. Absolutely. I have to say that i have access to some data that one of our providers sends us and that really does show that even in the u. S. , you have the same thing. The number of people going to hospital for treatment is much lower now, over half. A lot of it has to do with physicians in other settings has howme much more savvy about to deal with this infection and not panic sending everyone to the hospital. There is some of that going on. And you have the demographic change in that a lot more younger people are getting it and they are less likely to get sick. And they are not in there. I agree with the chief scientist in terms of testing. I personally know three people that had it but never went for a test. There was no such thing at the time. Berlin are still difficult to get even if you have them dumb us. How difficult will the winter be so many people increasingly getting the infection and testing positive or so many people getting it and not even getting tests . In france where i live and in the u. K. Where i also live, friends and family that have had a risk of having caught it can get a test really quickly and get a result. We even had one result come back the same day. It is going to be a very tough winter. We are going to go inside more which is where the virus infects better. Matt absolutely. From bloomberg intelligence. 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. Matt welcome back to the european open. We are 30 minutes into the trading day. Looking at equity indexes up the European Equity indexes are up. You can see the broader stoxx 600 index gaining about 0. 5 . Take a look under the hood to see which Industry Groups are leading the charge. And autoee that auto parts maker are doing quite well. Telecoms as well as banks and retailers are all. It does been a weekend of speculation about President Trumps health. White house physician sean conley admitting to giving a misleading statement about the president receiving oxygen. In a video on twitter, the president says he has learned a lot about covid19 over the last few days. It is been an interesting journey. Covid learned a lot about. I get it. I understand it. It has been an interesting thing. For more, let us go to our reporter out of new york. The do we know now about president s condition . We have one dr. Telling us conflicting things. Serious experts from Johns Hopkins say he is doing better and they go home today. We will have to see if he is discharged to the white house later today. Many doctors sounding the upbeat tone. He has gotten three treatments that we know of as well as an experimental medication. He has received a steroid. It could indicate the president s illness is progressing more quickly than expected. That is part of the inconsistency we referred to. There were reports on sunday that the president did not positive testirst on thursday instead waiting for the results of a second test. Marksare still question around his condition. Anna we will wait for updates. Time now for the brussels edition. Eus recoveryhe fund. Maria tadeo has more. Were looking at the European Central bank. There is already a a lot of speculation in the market. Look at some of the Downside Risks as to whether we would see the ecb taking preemptive action. To talk about this, we are joined by Vitor Constancio joining us from lisbon. There are investors who would tell you that at this point it is difficult to read what the European Central bank is doing and what Christine Lagarde wants to get to. Is there a messaging issue going on . So. R i dont think i think the message has been clear. Naturegrams reflect the of the policy in place and working. And you can see the outcome when on look at the market yields sovereign debt. There has in a decrease. There has been a decrease. The nature is working and it is very clear. Also coming ecb officials have discussed increasing their which is alsod be positive. Language, whenhe you hear Christine Lagarde for example she says let us not get too carried away. We chief Economist Says believe this is problematic for inflation. Is that whiplash for the markets . The ecb has to closely monitor what happens to the Exchange Rate but it has never been the target of policy and it cannot be. And by the way, the noise in the markets when the euro was creeping up to 1. 20 against the is 1. 17 and now it which was the level of the Exchange Rate when the euro started in 1999. Maria the conversation around the euro has changed in the last few weeks. Changing into whether we will see action taken by the ecb. We will see an increase in that program . What do you think we will see in december . Vitor i think any measures that may come or not will concentrate on the purchases of security. If indeed it is warranted to increase the program which they can do, of course, but that would be related to inflation prospects and performance. Rate whichexchange is now at the level which is, i would say, normal. When we compare to the old. Hurch rectory trajectory maria how much do you worry about inflation or the lack of . You . Orried are point tou are right to the core inflation because that is the more concerning figure right now. It has become very low indeed. Is havingnflation quite a bit of affect including the price of oil which a year ago was at 70 a barrel and is now barely 40 a barrel. That is having an impact on inflation. But also on core inflation. Concern over the low level of core inflation right now but on the other hand, we all know that this is something that has to do with the prices and in germanye in bat and the factors related to the crisis. All of these factors are things that Monetary Policy cannot offset in the short term. Need more to reach a conclusion we need more data to reach a conclusion about in about inflation prospects which could take place in the december meeting. Reasonanother potential for concern is the Recovery Fund. The idea that there is going to be money flowing from the commission to countries has anchored yields but there is a lot of talk that it could be delayed. How problematic could that be . Becauset is problematic one of the risks of the recovery next year could be the insufficiency of the policy stimulus in general in the euro area. In the beginning, one could of the that the package Recovery Funds would take time first to get final approval and second, to prepare all of the projects and the plans at the country level that are necessary to draw on the facility. Publishedmmission as two weeks ago its proposal which goes to the euro group. Goes toroposal which the euro group. The template for those plants. And the proposal the fines the objectives and the proposal relatinghe objectives to the cohesion and the the plantsand links that have to be prepared in each to the objectives of the mediumterm initiatives of the eu. Socalled european flagships which are very much delighted with Climate Change and revitalization. Concentrating more than 50 of that can be done using these funds into areas making the program and mediumterm support to more structural policies which is a guarantee that the money will be well spent. Is compatible to mediumterm objectives. But also linking the plants to program. Ean the proposal is quite detailed and complex. Many ofng perhaps too objectives at the same time because there are quattro main objectives as base are four main objectives as they say. Foresees that in 2021, only bulk would that the be concentrated in 2023 and 2024. This indeed means that the european level for stimulus will not be very significant next that nationallies fiscal policy will have to which isto be objectives. All maria it will continue to go up, exactly. R constancio nevertheless know, the factor has been suspended for next year but i think there needed. P revision is it needed. Right. Vitor that it is compatible the present terms of the stability pact. Youia mr. Constancio, thank for speaking with us. That is it for another edition of the brussels edition. Anna. Matt. Matt maria, thanks very much from brussels. Vitor constancio, former Vice President of the ecb. 1999ng the most since after the sale of its gas and oil business. Up next, we teach we speak to the ceo. You anna welcome back to the European Market open. European equity markets are up by 0. 6 . Group says the sale looks good for the company with sales jumping the most since 1999. We are joined by jon stanton. As you get ready to celebrate group, tell usir how transformational this will be. Jon it is a major moment for us. Years, wecointreafour making many changes. This deal is the final step in our journey to create that future vision we were working towards. Acquired a company and added that to our minerals division. We have that focus in that space and we have a Bright Future ahead. Group has transformed itself many times in the last few years. We are very excited about the future this creates for us. Matt when did you start these discussions . Is this a covid deal . Thinking abouten this for 12 months now. We announced this in february just as the whole covid situation was developing. It is part of that journey that we have been on. This situation did create some challenges in executing the deal but we did get it over the line. In these challenging circumstances. It is a really tough time but for us, this is about the value this creates for the future. In a sector where we are incredibly strong. But for a number of reasons, we think the future is very bright driven by carbon transmission which will require metals that we are exposed to. The vast majority of the worlds copper is produced without tools. Anna you have talked about some of the areas you are excited about and you have some money to invest. Talking about where you will invest that. Any suggestions about your priorities for investment . We see ourselves as a consolidator. We have been a disciplined acquirer. We will continue to be that. Equipment providing into the mining itself. We have a crushing and grinding offering in mind. As well as other equipment for the wet part of the mine. That is where we operate. That is where the wherein the tear takes place that is tear the wear and the takes place. Across the value chain, we think there will be future opportunities for us to consolidate building on the strength we already have in that space. We look to add to our already strong foundation. To you today talk on a busy day for you. Jon stanton. Next, can stocks advance without stimulus . That is our mliv question for the day and we talked with freddie vanderbilt. This is bloomberg. Anna welcome back to the European Market open. Into a positive trading session as a markets digest the latest news flow over the health of the president and hopes for fiscal stimulus. Good morning to you. You have been thinking about copper. We were just talking to a company that previously did a lot of business in oil and gas. What do you see structurally in the Copper Market . I we will see more of that. I think a lot of companies see oilr business that produced now looking at copper. As we shift to green energy and electric cars, we will be consuming more copper. Humanity has been looking for copper for a long time. Since roman times. We have identified all the major resources. That makes a strong longterm case. In the shortterm, it is a different picture. Aboutis all of this worry Global Growth and consumption and manufacturing. Disconnectcannot from the injury from the industry. Copper has come back at about 4 . The long term case remains. What have the romans ever done for us . [laughter] how much time have we got this morning . Can stocks advance without more stimulus . I think that will be a key focus this week. But which stocks . Case for stimulus is a little bit harder with donald trump in hospital and the wider outbreak. More nervous about shaking hands on a deal. But i think stocks do need it but at the same time, the faangs have been acting as a haven trade. Whether that continues is hard to say but i think the market does need stimulus. Eddie, thank you for joining us from mliv blog. Go on your terminal. German pmis coming out better than anticipated or than the preliminary reading. Going against what we saw in spain. The services pmi in germany, 50. 6. Preliminary earning was 49. 1. Stay with bloomberg television. Surveillance is up next. This is bloomberg. Francine President Trump may be released from hospital as soon as today despite conflicting reports from doctors. Markets recover from fridays risk off turn. France reportedly plans to shut down bars in the paris region, to be announced today. Cineworld shuts its doors. The worlds secondlargest cinema chains suspends operations. 45,000 jobs are at risk. Shares slumped. Welcome to bloomberg