Session, 0. 7 . We are seeing a decent move when it comes to the bond markets. The eurodollar trading up by 0. 1 . I want to show you what is happening. A lot of sound and fury around the middle of the session, but as it has for a long time, the pound going absolutely nowhere. We are up by just 0. 1 against the u. S. Dollar. Alix i feel like it is the same thing now with stimulus headlines in the u. S. Lets get the latest on brexit headlines. The u. K. Says talks are over. Prime minister Boris Johnson spoke on that earlier today. Pm johnson given that they have refused to negotiate seriously for much of the last few months, and given that this summit appears explicitly to rule out a canada style deal, ive concluded that we should get ready for january 1 with arrangements that are more like australias, based on simple principles of global free trade. Under in australia type deal, there would be no competence of agreement, and the bulk of trade would be done under less favorable wto rules, where both sides could impose tariffs. Joining us from london are mij Group Managing director, and judy dembski and judy dempsey, Carnegie Europe fellow. This is what we all sort of feared, a crash out hard brexit. Think the markets have priced in some of the drama we are now seeing. We are in the final stretch of negotiations, and as such, things are necessarily going to be a bit rockier. We are heading into that zone now where the big compromises are going to be forthcoming, and one should nor the eu councils conclusion. I think eu leaders talking to their domestic audiences in that context. But listen to what Emmanuel Macron said on fish. Listen to what Angela Merkel said, who is much more cautious and much more open. Look at what boris said quite explicitly. He didnt say no deal. He just said we need a change of approach. I suspect negotiations continue next week. We will see positive Movement Towards a deal. Guy judy, is your sense that talks are still on . We are going to see a frost barnier meeting this afternoon. Toy certainly the eu wants continue with the negotiation. Boris johnson has been completely inconsistent and put all of the stops over the past couple of months to put serious negotiations. Secondly, the eu does want a deal. Is pretty damaging for europe and for britain. It is back to the negotiation table, but one thing i will say here is that Boris Johnson has to decide if he is going to use the pandemic to do a hard brexit butoing to go for a deal, he is already in the blame game, blaming the eu for the breakdown of the talks because it is clear that britain has wasted so much time in coming to proper negotiations. Alix how does the pandemic play into that thesis . Dependentndemic plays into the thesis in the following ways. Says johnson can easily theres no sign of it going way, and the infections are going up, so i have to concentrate on this. But in fact, the pandemic, what is happening in britain, what is happening across europe is a european wide affair. Of the the number states eu are isolated from each other, nor is Great Britain. They all need each other more and more. An excuse not to take the hard decisions over a deal for brexit, this is johnsons decision. But to hide behind corona i thing is very disingenuous at a time when britain is going to need an appropriate trade deal more and more as it tries to get on its feet after the spend make. Guy Boris Johnson is currently speaking at 10 downing street, virus and the what is happening in manchester commode is likely to move up into tier three in terms of manchester, which is likely to move into tier three in terms of restrictions. The negotiation seems to be around state aid and fish. The u. K. Is trying to position at that if you are to give ground on fish, you do pick up ground in state aid. Does it state aid versus fish, or are these two different tracks . Mujtaba they are obviously related. I will just say on context on covid, that is propelling the government to do a deal that they have made a real mess of how they are managing the pandemic. I think Boris Johnson needs a political win, and that will ultimately drive him to do a deal with the eu. The government has moved a little on state aid and are willing to articulate what the regime they are going to implement after brexit will look like. They will accept the role of domestic regulator. There will be dispute resolutions. These are all the things europe has been looking for on state aid. The government does need to move further. It will only move further if there is an opening on fish, and based on discussions i have been having with senior french officials, officials in brussels, i do think they are preparing to move on fish, and i expect we will see a tradeoff between those two things at some point over the next few weeks. But this could run into mid to late november. Alix is the macron situation driven by merkel in moving france to one side or the other, or is there some thing is going on . Mujtaba we are all united. The 27 have been strongly united on the brexit question. They cant allow brexit to divide them internally. So i do think there are nuanced and subtle differences between their approach, but on the fundamentals, they are relying on the fun the middle. On the fundamentals. If it wants to trade on the eu Single Market, it has to accept binding and enforceable conditions in the labor market, and indeed state aid. I suspect the government, because a context, because of covid, scotlands concerns about the governments competence, they will be able to do a deal on the eus terms and avoid the risk of a no deal at the end of the year. Guy is there frustration in berlin as to the way paris is conducting itself, or does unity hold . Judy great question. Actually, unity holds. Issue,k to the fisheries the brexit negotiations are an integrated package, and the fish element just came up over the past several days. This is london trying to go for the maximum in this kind of deal. But i think we have to go for the Bigger Picture here. This is not just about fish, and fish at the moment is controversial, especially on the coast of the eu members that do a lot of fishing. The picture is in northern ireland. The Bigger Picture is in intelligence sharing, insecurity. It is in the trade relations that britain actually wants with the eu. Talking about australia and canada is fanciful at this moment. Europe is britains biggest trading partner and its neighbor. To squabble over fish and lucite of the Bigger Picture i think is very damaging, and that is why relationshipcron is very important. They see the Bigger Picture, but they also have to pay a little to some of johnsons constituencies, but they are not going to give much away. Alix the last three weeks, all we have been talking about his state aid and fisheries. Are the security conversations actually happening . Who are the key players in that . Where might that wind up . Negotiationsurity are very depressing in some ways because of a dispute between the eu and britain. I think britain is now going to pull out of the special galileo satellite system. I think the eu could have made a copper mise to include britain in this. Britains intelligence is still very good. But i think we are going to see Great Britain leaning more and more on nato, but heaven knows what happens to nato if trump is reelected, given president trumps attitude towards nato. But at the end of the day, given what is happening in the ,tlantic relationship, china all provokes a very Strong Defense array for the european union, and britain needs that, too, because britain cannot go it alone. Guy if we end up getting to a deal and the end of the year will around, how different the relationship be . How much friction will there be come january 1 of next year . Mujtaba theres going to be a lot. The u. K. Is leaving the Single Market in the customs union. Most of those economic unions guarantee frictionless trade. What the government is planning to do is a zero tariff, zero quota trade agreement. So trade will be free, but not be frictionless. That is important to understand. Even in the best case scenario, theres going to be substantial friction, so this is a hard brexit. In fact, it is the hardest version of a brexit absent no deal. That is the world we are heading to in the event there is an agreement. So economically, things will be more challenging. Of course, nothing the government does with the rest of the world will conference a will compensate for the loss it now experiences. I think it will be a bit more challenging, the bilateral , and i think rebuilding trust and rebuilding that political relationship will also likely take some time. Guy we will leave it there. Mij rahman, eurasia Group Managing director, judy dempsey of the Carnegie Europe foundation, thank you. Boris johnson speaking at downing street. If you would like to watch it, it is available on your terminal at the function live. Manchester resisting a move into that tier three highest level of lockdown. An agreement has not been made with greater manchester, Boris Johnson is saying. He calls the situation grave, and will intervene if necessary. He certainly disagrees with those calling for a national lockdown. Up next, we will address the market and put case and of what is happening here. John wraith, ubs head of u. K. And european rates strategy, will be joining us. That conversation next. This is bloomberg. Guy live from london, im guy johnson. Alix steel is a new york. This is the european close on bloomberg markets. Forrest johnson continues to speak at 10 downing street, ealing with issues Boris Johnson continues to speak at 10 downing street, dealing with coronavirus. Nding the focus is what is going on in manchester, the Northern City currently resisting the central governments decision to impose the tier three lockdown, the highest level of lockdown we currently have in the u. K. Andy burnham, the mayor, is basically saying he will not make that decision. That standoff continues. Boris johnson indicating that he will step in and intervene if necessary. We will see ultimately what happens there. We have seen lancashire today, the area to the north of and liverpool, that is going to be placed in the level three, and that has been, i understand, unresisted by local authorities. But we find ourselves in a situation where basically, we have this creeping lockdown taking place. Boris johnson resisting a national lockdown. His argument seems to be, and i think a lot of people are looking at this argument as well , how does a circuit breaker, a two week circuit breaker, actually work . Does it just delay the story . What is the exit plan from that . That is the argument coming from the more hawkish element within the conservative party at the moment. If you are to enter these more severe terms, how do you get out of them . What is the plan . Alix as a business, how do you make any adaptation when you may be struck with regional issues . Im starting to hear things from investors that the u. S. May be just six weeks behind, or is this going to be an anomaly . That is going to dictate where rates and fx, etc. Go. Guy you are certainly starting to see a pickup that would suggest that is the case. Maybe it is a simple weather thing. It got colder here earlier, as a result of which we have gone inside earlier. John wraith, ubs head of u. K. And european rates strategy, joins us now. I want to get your position on what is happening with the Brexit Strategy coming out of the u. K. Today, thing it will ultimately walk out of the talks. What is your sense from a market perspective as to what is happening here . Is there anything new . John not really, i dont think. No. What is new, i suppose, is the tone of the comments, but i think that is related almost entirely to the fact that the real deadline is getting closer and closer, and it has been the nature of negotiations as you head towards the end point of a deal for both sides to dig their heels in ever more. But i think with both sides still very firmly keeping an eye on an end ambition of striking a deal, i think the market is taking it fairly calmly. We would suggest there is going to be more volatility over the coming days, even though the endpoint for us and i think for the markets remains the likelihood of some kind of deal, which keeps disruption to a minimum after yearend. Alix is the asymmetric risk to the upside or the downside based on that . John if you look at where we are now, certainly in terms of the tradeweighted level of sterling, we are almost exactly in the middle of the range that we have traded in for nearly four and a half years now, ever since the referendum, and roughly 5 from either extreme that we have seen over that period. A would say on conclusion of reasonably clear deal which leads to disruption minimal, we will head towards the top end of that range. That is probably the limit of the upside as long as these other risks are clouding the outlook for the u. K. Economy. On the downside, if a deal really falls apart, theres probably significantly more downside. We will certainly head back to a lower end of that post referendum range, and probably another 5 to 10 beyond. So around parity on eurosterling would be our expectation. Guy i am trying to understand how this all affects inflation. Is the right way of thinking about it that no deal is inflationary because you get that big move in sterling that you just talked about, and you get a c can hike in tariffs a significant hike in tariffs . Is that the right way of thinking about it . Is, yes, i think it although on top of that, you have to layer in the fact that , leaving covid to one side, but in itself, that probably gives a boost to u. K. Sentiment and activity, and at the margins, that is a bit more domestically inflationary. With no deal, you get a spike in prices because of the fall in sterling and the imposition of tariffs. You probably get a weaker domestic demand offsetting that. The important thing in terms of the rates market and Monetary Policy expectations is to remember that the mpc has guidance explicit that they dont tend to publish data until the output gap is well on its way to be enclosed. That is going to be way after this year and after the u. K. Economy has grown well for a period and replace to this air pocket in demand we are seeing unfortunately as a result of the pandemic. For policy, i think a spike in inflation on the back of a new deal brexit doesnt mean anything for rates. The mpc is not going to tighten rates on that sort of inflation. Guy what about cutting . I think right now, weve got 10 bips priced for the lie come august of next year. Do you thing that is the right price . What could be the catalyst for it . John with think it is broadly right. To put it simply, a cut is more likely than a hike over the next year or two, basically. But we still think it is a pretty low probability that they do cut into negative territory, although they are preparing the ground. I think everything they say tells you they would rather not go there. They are far from convinced that it is an effective policy response, and they worry about the impact it would have on u. K. Banks. But if we get a no deal brexit, and especially if on top of that, we are getting bad news economically speaking from the worsening of the pandemic and perhaps the hopes of a vaccine dashed, they may well have to go negative. We are not inspecting no deal. We are not expecting worse news on the pendant into next year. We dont think negative rates is likely to crystallize, but it is still a possibility in those worstcase scenarios. Alix what else can they actually do . John they can certainly do more qe, as they like to keep her minding the markets, and we think they will in a few month time. If they are worried about the outlook, that qe will be greater in size or more rapid in terms of the pace of purchases. They can also change the Term Funding Scheme to make it cheaper for banks to access money and potentially do it for a longer period, lower the fees on that scheme, which has a much more direct passed through to the Corporate Lending markets than simply cutting the policy rates. There are obviously other schemes they can do in terms of supporting credit markets and giving incentives to banks to lend more aggressively to the private sector. Those things we think would be more effective in cutting rates to negative territory. It is a tool in their toolbox. With think it is well down the list of what they are likely to practically do in the near term. Alix as they have been trying to say. John wraith of ubs, thanks a lot. We appreciate it. This is bloomberg. Guy ongoing press conference at 10 downing street. Just been hearing from the chief scientific officer in the u. K. , driving in some ways the critique from the Science Community that the government is not doing enough. He is saying, we are not where we need to be on the virus. Scientists are certainly pushing the politicians at the moment to do more. In some ways, the politicians are trying to do more in the form of regional lockdowns. Then we are having a fight at a regional level. We certainly feel look disunited country. Lets take a quick look at where markets are right now as we head towards the close. A very positive session for european equities, as you can see by the final numbers that have been delivered here. In terms of where we sit on the week, a little less positive for european equities. The ftse 100 down by 1. 6 on the week. The close is next. This is bloomberg. Mberg. Guy 30 seconds to go until the end of regular trading this friday, alex. It is friday. We are up by 1. 4 on the european markets. Gapping higher first thing by the autos. Ill talk about the autos in just a moment. Negative week. U. S. Equity markets are continuing their run. Particularly the nasdaq. Here in europe we are looking like we are going to finish on a negative note over the last five days. We could take a look what the week looks like. As you can see we are posting a red number. In terms of the individual markets. 7 of 1 . By 7 broadly positive, we have this time yesterday posting positive numbers. Particular in the Leather Goods area. That has powered that over in paris. The dacks has been driven by the car sector. Look at individual stock stories that are worth looking at. Daimler, one of two companies within the european auto secretaryive with strong numbers. The other one was volvo. We sauted a surprise pickup in the september numbers for european car sales. That really riding a positive boost. Volvo in the truck sector a solid day. Fresh, the online delivery k hitting a record high. They were gushing today in terms of its reviews in terms of performance of the company. We potentially have a steel division, the market liked that news, that stock up by 11 . Alix lets look at how the world of the vaccine is developing. Particularly as cases right and lockdowns continue on a regional basis in europe and the midwest is suffering as well. The latest is pfizer said its emergency Covid Vaccine could seek emergency use authorization for its vaccine in the u. S. The timeline is now late november. They talked about it being the end of october of the joining us now kate bingham, chair of u. K. s vaccine task force. The group set up by the the government to lead the u. K. s efforts. Great to chat with you on this. In the u. S. At least, if you get emergency authorization you can just get the vaccine out to the public faster. What mechanism does the u. K. Have to do that . Te its called regulation 174. Its a procedure that allows us to order n. H. R. A. , our regulator, allows them to give conditional approval and add conditions to what other vaccine they may allow to be given to the public. Its a similar approach. I prefer not to use the word emergency use because it signals panic and lack of due process. In fact, due process is being followed and safety is paramount. I prefer the lang wadge conditional approval. Guy we have seen a number of trials hauted, paused, over the last few days. Pfizer is pushing on. It has a product. Some of the investigators with some of the others are looking like they could be causing problems. What is your assessment of the timeline . Kate weve got as far as the u. K. Is con concerned, we have two vaccines that will have the target in the next few weeks. Thats the Pfizer Vaccine and the astrazeneca vaccine. D in the u. S. You have moderna. That we can be firm on in terms of timing of recruitment finishing. The date much less firm. We watch the number of infections in the different Clinical Trial cohorts. That is what will determine whether or not we can show statistically that people who have received the vaccine are protected. Those people who received versus those people who received the control. That is what the regulators want to see is that statistical benefit from the vaccine. Alix say when you get that, then, we see that one vaccine has better stats than the other, how do we go about who gets what vaccine . Kate in the u. K. This will ultimately be a decision based by the department of health of the government. Well have a committee, called a joint committee of vaccinations and immunizations, which is like your apik community in the u. S. They give the government advice on the prioritization on those people they think should receive the vaccine first. The preliminary advice that the jcpi has given to the u. K. Government is that the First Priority is care workers. Second is frontline, health care workers, and the over 80. Then it goes down in age order with including adults with severe Underlying Health disorders. As a preliminary advice that we have been given in the u. K. But that will obviously still be subject to the final data from the Clinical Trials which will indicate whether any of these vaccines work in those different cohorts. Guy can you give us an acements how difficult the logistics are in distributing the vaccine. From what i understand you need a cold chain from production all the way through to putting these things into peoples arm. How hard is that going to be . How quickly will it be able to be ramped up . Kate guy, youre right. This is a major logistical challenge. Unfortunately, one that im not responsible for. In the u. K. , the department of health, is responsible for t all i can say is i think we have a crackerjack team. They are working to do work through how the vaccine gets distributed. It will be challenging. Guy can i just interrupt. Where is the bulk of the vaccine that we are likely to use in the u. K. Being produced . Kate depends. Which vaccine. The oxford as trazenica vaccine is the u. K. The pfizer has two supply chains, a u. S. Supply chain and the european supply chain. Those are the first two that could be available in the u. K. And then the u. S. Of course with moderna, they have an established u. S. Supply chain. They have got a european supply chain coming close behind. Alix question on the next step for vaccines. Say we get five or six vaccines in this first round. Different companies. Do the companies then stop making vaccines . I read an article over the weekend that talked about how oftentimes the second, third, fourth iteration of vaccines can be more effective than the first. But if we rush the process now, we wont get those second, third, fourth iterations. Kate i think two questions. One is, will we be able to continue to develop those second, fourth, how can you do that . If you are vaccinating everybody, you wont be able to include those people in trials. The way we think about that is by defining if you can take a vaccine that has been approved and gone through a big control trial, and demonstrated they are able to protect against infection, then an equivalent vaccine can show the regulators if they can replicate those same requirements. The antibodies, if they can show an equivalent of immune response, then its considered whether or not with data they might be prepared to license on the back of basically whats called protection data rather than the full data. An important point is that we dont think this is likely to be a virus that or vaccine that is one and done. Its much more likely that the immunity will wane at the time. And therefore we are going to have to do additional revaccinations to maintain that immunity against this virus. If thats the case, actually those second, third, fourth generation vaccines could play a very Important Role in providing what may be a different type of immunity which could provide some protection, and the durability of protection. The fact the vaccine doesnt get approved in the next few months, does not mean it doesnt have a role in controlling and maintaining our protection against this virus. Guy kate, how many people need to take the vaccine for it to be effective in the community . How do we convince people that it is the right thing to do . Kate i think thats a very important point about vaccine hesitancey. People being concerned about should they take the first vaccine. All these various claims that are made about potential health risks. The first thing i would say is that all the Clinical Trials that have been run in the west and u. S. , europe, u. K. Have been done against preestablished agreed safety and efficacy standards. And there have been no short cuts whatsoever in the safety evaluation of the of these vaccines. The opposite. These vaccines probably are significantly larger than typical vaccine study precisely so that safety can be very well evaluated, which is what we have seen when we see Clinical Trials being put on hold or pausing because in these very large studies, for example a study is 60,000 people. Its inevitable in those 60,000 there will be cases of disease that emerge that are unrelated to the vaccine. Even if they are unrelated, an independent expert has to assess every single safety event to ensure that it is safe to continue dosing the vaccine. What i would say to the people who are hesitant about vaccines is look at the factual and clear information which has been given by the physician and those who are in authority running these Clinical Trials. The pharmaceutical companies by and large are mostly doing this at nonprofits, this is not something that is being pushed through for commercial reasons. Everybody wants to get the pandemic finished as soon as we possibly can and get back to life as we used to know it. And to do so safely. We certainly in the u. K. Are thinking about working with department of health and colleagues who work with the tech company to try to address the antivax statements as well as the propaganda relating to vaccines which is just simply false. Guy on that note well leave it. Kate, thank you very much for your time. Kate bingham, u. K. Vast seen task force. Prime minister speaks at 10 downing street talking about the brexit deal. Saying the e. U. Does not seem to want to progress a trade deal. Thats whats happening with the vaccine and the virus that would be addressing thus far in this news conference. We are wrapping up the week. These are the final numbers here for the european markets. A negative week delivered by european markets. But a positive session to finish things up on a friday. Driven largely upon by the car sector. Certainly the best performing sector in europe. The top of the hour in the london area, this is bloomberg. Alix this is ploomberg markets, the european close. Coming up, tony ressler, our management chairman, this is bloomberg. Time now for the bloomberg business. A look at some of the biggest business stories in the news right now. A plan to increase the val identification to what would be a record breaking i. P. O. Bloomberg has learned that the target is now at least 280 billion because of strong demand. And about 35 billion in the sale. The Company Plans to list shares both in hong kong and shanghai on the same day. For the first time this year new car reg strailingses were 1. 1 in september. Italy and germany saw increases. That offset declines in france and spain. For the ear european auto sales re down 29 . 737 max rebound the has been grounded for more than a year because of two fatal accidents. Boeing still has to get approval from the f. A. A. Before the plane can start flying again in the u. S. Thats the latest. Guy thank you very much. Hugely significant to get that decision, or that news out of the european regulator, alix. Oversea, theres been concern about wait we see the f. A. A. Over in the states regulating and certifying aircraft. For them to come out and say we think the aircraft is safe. As before for the f. A. A. , the f. A. A. Is further along in terms of its investigation than the arpa is. And the rest of the world will look and say a nonu. S. Regulator is saying the aircraft is safe to fly. There are still a number of hoops that boeing has to jump through. Alix what wound of happening before the chinese regulators were on top of it quicker than the f. A. A. Im wondering where they stand in this. Guy i think politics will play a part in all of this. I think we find ourselves in a situation where potentially you could see the chinese regulators, because of the tensions that are existing between the u. S. And china, may be making it more difficult. Well see ultimately what happens as a result of the election, whether or not that takes place. Alix interesting. That conversation is probably on hold. From the plan manufacturers to their customers, talking about the airlines. The industry took a huge hit from the pandemic. They are still taking it. Despite that top credit asset manager is betting on the sector. We had an exclusive interview with the c. I. O. For credit jim. The reality is when you really peel the onion back, not only every industry but every company has a little bit of impact. The Airline Space certainly those airlines that are either domestic or cater to more of a budget traveler, those will probably have a bit more recovery than the high end business recovery. We found certain situations whether it was providing new debt capital or we have been involved in some of the restructurings where we suspect with whats going on with aviation, the value of planes, the value of closes. That there may be an opportunity to be a lender through a restructuring process. We have found a variety that we thought made sense. I do think if you take a step back that a couple of big industries, commercial real estate, and aviation, i do believe that there will be a multiyear opportunity that how you, again no pun intended, how you navigate that. You may start out as a senior lender. You may find yourself providing capital and c. M. B. S. Or a. B. S. You may have insight into individual buildings or planes. Both of those are industry that is attracted a tremendous amount of capital last decade. And whenever a tremendous amount of capital is provided, theres usually a bit of an unwind. And on top of the unwind with whats going on with Consumer Behavior back to work, however it may be, theres going to be lot of macroshifts or waves that crisscross those two industries. I know we as a firm has spent a tremendous amount of time bringing together folks from a variety of perspectives to appraise those opportunities. Its not necessarily that you saw kind of a vshaped rebound in that industry. Its just that you saw the opportunity to retain value even as things get a lot worse. A lot worse. Yeah. Find Great Companies and then well find the right place in the capital structure to invest. Sometimes it is equity. Sometimes its a senior lofpblete sometimes its providing the debtor in possession which we did for one of the airlines. There is no one playbook for any industry or any type of company. Uy what is happening in the airline sector. Fascinating to see how the Airline Sectors been supported, alix. Clearly another round of stimulus would be a huge help to the sector. The feds also provided help as well by boosting the credit market. And allowing these airlines to come to market and actually raise moppy as well. Certainly those received considerable support from different angles. I guess everybodys hanging their hats on what happens next in terms of what goes on in washington. Alix just two weeks ago, pelosi said please dont fire anyone yet. We are working on it. Well get a deal. Thats when proum was diagnosed with covid. The latest is pelosi did talk for an hour yesterday. She told some colleagues, the democratic colleagues, there are still a lot of things they are butting their heads against. One is the liability provision. Mitch mcconnell, the head of the senate, has been adamant that that is included in it. Also pelosi is talking about things like mandatory testing strategy, that hasnt gone anywhere, either. Guy there seems to be more moving parts than we first assumed. Just getting this over the line in terms of simply thinking about the number is not the way to think about it. If we dont get a deal done, do we get a big deal done after the election . Some people are thinking that could be the case. Maybe we have to wait for january or february before we get some stimulus out of the united states. That feels like, alix, a long way away. Alix i think it depends on what job Mitch Mcconnell will have after the elections and where the senate goes. Talk about getting a deal done and brexit and an australiantype deal. The well break that down more next. This is bloomberg. Guy british Prime Minister over the last few minutes wrapping up a press conference at downing street. He says the e. U. Doesnt seem to want to make progress towards a trade deal. He says the u. K. Wants a canadastyle agreement. Most tariffs are eliminated. Joining us from brussels, the other side, maria, what can you tell us . Maria what i would say this has been a day of a lot of tension, optics here going into the summit. Its ended the way we also was going to end with no deal and no clear way to a deal there. Was no deadline here. The Prime Minister saying hes very unhappy. The flip side is, macron, hes a tough negotiator on the e. U. Side. One of the major sticking points has to do with fish. This is something that the french care about. It may be surprising for the Investment Business community. Its a very small amount of g. D. P. , but politically its sensitive. I asked him are you willing to compromise and move on that . An angry answer. Have a look. I want negotiations are failing on fishing, which is the tactic argument of the brits. They are failing on everything. The leaders of the 27 Member States who made the decision to stay within the e. U. Are now here to make the british Prime Minister happy. The brits knee the single european market, they are far more dependent on us than we are on them. Fisheries is a tactical argument used by the brits. Why . Because in the case of a nodeal, it is the only way Boris Johnson will be able to ay, i won. Marie that was the french president. I would say you move away from the unhappiness of Boris Johnson, and macron, the realities are the two sides are very much at the table. We understand that next week negotiations will continue. In fact, thats what we heard from Angela Merkel. And the head of the european commission. In their view, nothing has changed. Alix great reporting. Thank you very much. Talks continuing there. Talks here on stimulus. Right now you have a little optimism in the equity market. The outperformer is the dow. You see any rotation out of tech in the cyclical. That wraps it up for me and guy here in new york and london. On balance of power with david wes continue on Bloomberg Television and radio. Dont miss that. The big news out of the u. S. Was retail sales fell. Factory sales a little weaker. That change in the market, helping boost retar heel sales, keep that elevated. The question is can that continue with no more stimulus checks coming . It looks like an impasse when it comes to d. C. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. From bloomberg World Headquarters in new york, and tv and radio worldwide. Welcome to balance of power. Start with the check on the markets today. Joining us, abigail. Up again maybe three weeks in a row. At the same time we do have a virus, we dont have a stimulus, why . So much noise out there focusing on the market. The reason we know that we do have the s p 500. The dow up three weeks. All these headlines, reacceleration of the virus in europe and ear in the u. S. , the case count the highest since early august, very worrisome. Plus no stimulus once again. You could say we are climbing the wall of worry. Stocks up three weeks in a row. The check of the nasdaq, up four weeks in a row. The best streak since the end of august. That was that big powerhouse. Today we have bonds lower. So there really is this risk on tone despite all these uncertainties. This has been the story right out of the marlos that despite everything going on in the world, stock investors are all in buying stocks for sure