Equity futures lower on the ftse. The s p 500 went down. Bid into the bond market. Into the bond market we go, negative almost 60 basis points on a 10 year. Its like a throwback to our days together five years ago. There is some weight to this. Good morning. Annmarie certainly, it is. Were so excited to have you back. An absolute gladbac bloodbath, nymex dropping below 39 as the resurgence of cases in europe not going to bode well on the demand side. The supplyside worried about libyan oil barrels. Softer. A bit this is the prospect of fresh stimulus. That helped treasury yields rise. Jonathan thank you. Lets get the first word news this morning. We can do that with laura wright. Laura china is laying out a new plan for Economic Growth this week in beijing. President xi jinping is holding a meeting to decide on the next fiveyear plan. Its expected to focus on technological innovation, economic selfreliance, and the environment. But the event is closed to the press. Key decisions wont be cleared before it wraps up thursday. The latest trade talks between britain and the European Union have been extended to the middle of this week. As the u. K. Government has indicated optimism about signing a deal, sources tell bloomberg the chief negotiator Michel Barnier will remain in london for the discussions. The senate advanced Amy Coney Barretts nomination to the Supreme Court to a final vote. Her confirmation that are today is in little doubt, but it comes after delaying tactics by democrats. They want to wait until after the election while republicans see the chance to lock in a conservative majority on the bench for years to come. Protesters in thailand are putting pressure on germany over the kings legal status in the country. Its the latest move to force changes to the constitutional standing of the monarchy. Demonstrators are asking terminate to scrutiny asking germany to scrutinize whether he violated countrys law. The king is in bangkok spends much of his time in germany. Global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. Jon, ann marie. Jonathan thank you very much. Eight days to go into the election, President Donald Trump continuing to downplay the impact of coronavirus. Some companies are coming out very quickly with the vaccine. Very shortly, very quickly. Double quickly and the pandemic. Were rounding the turn. The vaccine will get it done fast. Jonathan cases hit a record sunday. Mark meadows said the u. S. Is not going to control the pandemic. Europe and spain and gnashing announcing a curfew with spain and italy. More restrictions across europe, an increase of infections across United States a real concern as we go deeper into winter. Annmarie exactly. You and i have had this conversation. Its not even flu season. We got our flu shots and its not even winter. We still see strict restrictions in europe. Were deep into earnings season. Markets are ignoring earnings season and looking at fresh restrictions. Jonathan what i really worry about, its still october, not november, were not starting winter across the continent, but the data has deteriorated. Weve already lost momentum. We saw it again this last week. This is an economy without momentum, facing an increase in infections. Once again, an ecb asked to do the heavy lifting. Thats the event of the week. The pressure on Christine Lagarde, with not many places to go. Annmarie certainly not, and she gave a nod to the g service data. She said the Services Economy in europe is 75 of jobs. While the services contract, there is much harder to come out of. That vocation you didnt take in the summer, youre not going to take it next month. Maybe the car you dont buy, but the vacation you dont take. Serious services. Jonathan joining us now is the head of flexible multiasset. Mark, great to get you on the show. First question for you, does a second wave lead to a second dip in the european economy . Mark great question. I think its already starting. [indiscernible] the european economys already slowing down. With further restrictions were likely to see, that will fully accelerate the downfall. Annmarie good morning. What does this mean in terms of where you want to start putting assets . How do you want to change your portfolio going into weeks end . Marc so many. The president ial elections, the coronavirus case numbers accelerating. We also have vaccine trial readouts. An incredible amount of noise. We dont have an edge because we have to wait for events to unfold. We are looking for signs of trends emerging, even within asset classes. To a point about europe, we will adopt a cautious stance for this reason. Coronavirus going in the wrong direction, highfrequency data. Another thing to focus on is the fact inflation dynamics are also deteriorating. Its investors, businesses, consumers not anticipating lower prices. They will withhold spending decisions. Jonathan sap came out yesterday evening, and they cut guidance for the rest of this year. That stock is down in the early trading by almost 1013 . How complacent are we being in europe . Look at how they europe the economy is playing out. Even software companies, even theyre struggling. What does that make for cyclicals . Marc if you look at the earnings season in the u. S. , its cyclical, the biggest beast by far, by financials, materials. Its been strong earnings against expectations. The nifty, thats because the bar is low to beat. Its worth highlighting this week will be critical for the technology sector. All the big Communication Services companies reporting. After that, well have a better feel of which ban better perspective to year end. Annmarie and you did say earnings in the u. S. Are doing well, but earnings taking a backseat given covid cases, given the u. S. Election. Using after the election, earnings will become do you think after the u. S. Election, earnings will become valuable again . Happen is will investors will effectively have in fact elections in their rearview mirror. Will apply there will be winners and losers. What youre probably going to see is money put back to the sidelines in order to have [indiscernible] once that clarity emerges. Jonathan weve got to leave it there. Great to catch up. Marc will be sticking with us. Coming up, the stimulus blame game. Sap cutting its outlook for 2020. We speak with the cfo in 30 minutes time. Alongside annmarie hordern, im jonathan ferro. This is the countdown to the european open. Good morning. This is bloomberg. Were waiting for the final you said they said they would. Yeah, and also same thing. They keep moving the goal post. Were making concessions, too. We dont even have the bill yet. Weve continued to make offer after offer after offer and etsy continues to move the goal post. Jonathan neither side willing to take responsibility for the frozen pandemic relief plan. Well polos he says it could happen this week, the chances of it making it through the senate is slim. Malcolm marc is still with us. Its pretty obvious the daylight between house democrats, the admits ration, and Senate Republicans administration, and Senate Republicans is still there. We will get a deal done, not before the election, but some port some point afterward. Marc you cant win out, because houses and households need funds, given the fiscal thing that submerged. The challenging thing is elections are only a few days away. That introduces a level of calculation by both sides, on top of the normal ramblings. Both sides are jockeying for position, each side being blamed if the other side doesnt go well, or taking credit if it does go well. Were seeing a chicken wire situation, where both are trying to put pressure on the other side to extract more concessions. We do think theres a possibility of negotiations culminating in a deal but getting those funds out is a pretty low probability. Annmarie it certainly is. Jon caught up with larry kudlow. As hes talking about the fact they want to get this deal, President Trump says go big or go home, larry kudlow is saying there is a vshaped recovery. If theres a vshaped recovery, why do you need to trillion dollars plus of stimulus 2 trillion plus of stimulus . When you see relief for households . Marc that base case is moving all of the time. The reality is its unlikely those funds get released before the election. But if the election is contested, that kicks the can further down the road for businesses that need it. Jonathan even if its not contested, lets say republicans keep the senate and biden takes the white house, what does that look like the morning of november 4 for this market . Marc the market will take time to digest what it needs in practice. It depends on whether the republican majority is compromised or they gain seats. That will dictate how confident they are feeling when they enter negotiations with a new white house administration. Theres another scenario in which trump retains presidency but the republicans lose majority in the senate so trump becomes an island, not just within the legion of pounds, but also within his own party. That creates a very distinction all very dysfunctional situation. Annmarie on that point, the betting agency has a probability of a blue sleep at 51 . It was formerly 62 . Do you think investors are overpricing it as blue wave, and is now a time to start buying protection . Marc great question. We wouldnt be convinced the Market Movement weve seen is down with the narrative of a blue wave. Theres so many other things going on which will have an effect on price. Certain level of optimism on a fiscal deal, certain level of optimism on vaccine trials being successful, and of course, the fed and other Financial Companies doing the best to support financial conditions and support financial markets. The betting polls are right and tightening off, for sure. What we would say for certain is the National Opinion polls definitely overstate the likelihood of a blue suite. It is blue sweep. It is still a probability, but President Trump has a high level of support within rub republican within republican registered voters. This support rate is growing in key minority communities, such as the hispanic community. It is possible trump is better than the Mainstream Media would believe. Jonathan let me get to the price action. Equity futures down. The dax pretty hard this morning. Likewise on the s p 500, as well. You mention the narrative around price actions. Whats pressuring for many, we take the price action and create the narrative. Whats clear to me is when things are going up and working, why would the things that have been working stop working anytime soon . Lets talk about the things that have been working up until this morning. Growth equities, fantastic. Credits, tighter, brilliant. When does that stop working . Marc i think whats a more interesting observation, whether that continues within asset classes, theres been a rotation in cyclicality that started in september when we talk about technical correction in the nasdaq. That continued this month, where we saw cyclical sectors, financials, industrials lead the market. That is predicated on, i think, the prospects of a fiscal stimulus, which will bear steepening of rates and curves. If you see a reversal in the reaction, you will see the possibility of styles starting to rebalance themselves again. Secondly on credit markets, what youve seen in the past few weeks is credit risk overspread of duration risks. Typically, high yield have been outperforming. Part of that is rates have gone higher. The duration profile is a lot longer. Again, if rates start to be better as a safe haven asset, you could see that relative performance reverse. Jonathan he mentioned a bear statement. Weve got a full platter. Big question was asked last week. Limiting treasuries might be. Healthsouth do you think it would how south do you think it would be . Marc there are two things to focus on, the sign of the move, and the pace of the move. The size is 10 or 11 basis points, relatively modest. What we are interested in is the move was quite orderly. Basis points rising higher every single day. Markets can absorb that because they view the pattern for the right reason, fiscal stimulus, Economic Outlook mediumterm, and equities and credits are like that. Its when stocks see dramatic moves higher which makes markets weary because theyre not sure whats driving that. They create a sense that the fed has lost control of bond markets, having been successful in suppressing volatility the past few months. Jonathan great to catch up. Really good to see you. Marc franklin on this market. Futures this monday morning breaking down, and down hard, the s p 500 down. Talking about the bid coming back to the market. 30s come again almost five basis points. Dax futures getting hammered. We shaved 220 off dax futures. Much more on price action still to come with your Bloomberg Business flash. Heres laura wright. Laura Carlyle Group is nearing an agreement to acquire seagrams for 2 billion euros. The buyout firm and german engineer are finalizing terms of the deal. They outbid brookfield for the unit. No official, yet, but the deal could be announced comment yet, but the deal could be announced next week. It paves the way for a blockbuster sale that bank at the chinese sent tech giant a higher valuation then jp morgan. More details are expected by tuesday. Sources tell bloomberg the hong kong price could be announced as soon as thursday. Sap cut revenue forecast for the year. It says it expects coronavirus to hurt demand through the first half of 2021. The pandemic will delay the tech firms goals for cloud revenue, overall sales, and profit for one or two years. Previous outlook incorrectly assumed economies would reopen. That your Bloomberg Business flash. Jonathan thank you, thank you very much. Coming up, a covid resurgence pushing back the recovery. This stock market is down and down hard. 40 minutes away from the market open in loaded. Good morning. Alongside annmarie hordern, im jonathan ferro. This is bloomberg. We declare once again a state of emergency because it is the most effective way to slow down the contagion curve and keep the virus away. Annmarie annmarie that was the spanish Prime Minister declaring a National State of emergency. He would Ask Parliament to extend the rules initially enforced for 14 days to six months, until may of 2021. U. K. Is considering reducing the self adulation time for people who tested positive, cutting it for two weeks to 107 days. The government is making some changes for Business Travel, trying to get a boost to airlines. Joining us, siddhartha phillips. What do we know about potential changes . Could they potentially start jumping on jets again and traveling around the world for deals . Morning. Lastah, were hearing this evening the government is considering making bankers, hedge fund managers, executives working on deals, traveling from overseas to the u. K. Exempt from this quarantine period. This is in an attempt to promote a global britain. The governments justification is a lot of these people andally fly on private jets they wont come into contact with anybody. That is what the government is thinking about at the moment. Jonathan its unbelievable to me this is how were marketing this move. Airlines are struggling because Business Travel is shut down. The best way to get Business Travel moving is to reopen quarters and do something about quarantines and testing. When you promote in a way that says its a hedge fund manager, for bankers, it gives an elitist kind of tilt. Why are we doing this when we know what this is about . Its about getting airlines up and running, quarters moving, back to business, back to work, so we dont have to bail out these companies. Siddharth absolutely. The problem at the moment is there have been spikes in the virus in europe, as you all know, and thats coming into contrast with attempt to restart the men. Essentially its restart demand. Essentially its across the world. Travel continues to be slow. Thats what airlines and officials have been urging governments to do is replace the military quarantine period with a testing regime. But the government hasnt said anything about accepting a testing regime. Where it suggested was replacing the two we quarantine with a one we quarantine, followed by a test two we quarantine, followed by a one week quarantine, followed by a test. Jonathan great to catch up, really important story for the Business Community and the city of london. Headlines breaking across the bloomberg in the last couple minutes, china, boeing defense, Lockheed Martin selling arms into taiwan. China set to sanction, boeing defense, Lockheed Martin as well. Up next, joe biden heading to georgia. We discussed the u. S. President ial election, just eight days away. From london and new york, this is bloomberg. Jonathan 30 minutes away from the opening of equity futures,. 9 ,0 7 , dax futures dax futures up. 2 . Dani burger with us now. Dani weve been paying a lot of attention to what happens with equities after the election, but lets talk about what happens with a week to go. A lot could happen. According to miller payback, if history is any guide, he was equities should move higher from here on out. Historically, over the past 30 years, every single election weve seen this play out, i was move higher by an average of 8. 3 heading into the election. The notable exception is 2016. A lot of news flow happened before the election that put a hamper on where equities could go. That could certainly play out this week, as well. Mahle here says theres no guarantee with anything, but this does tell us odds are for equities to go higher until the election next week. Jonathan getting breaking news. Let me bring that to our audience. Biotech asked bayer for 4 billion. They were acquired biotech for 4 billion. Dani theyre going to pay if milestones are met. Lets take a look at how they trade at the open. Dani, back to your morning call, is there room for equities to go higher . Dani exactly, you cant have a rally if they are invested fully. According to takata, who does a fantastic job digging through positioning numbers, hedge funds the moment are neutral. The he doesnt think theyre going to be buying into the u. S. Election because the action hes seen really does imply they state on the sidelines. Steed on this stayed on the sidelines. For one, theres the seasonal issues of hedge funds tending to buy in november, in december trying to catch that santa claus rally that historically takes place. Also, liquidity is favorable for these hedges at the moment. If you want to borrow, make a bet. The data is encouraging to do so who is going to be buying . According to takata, both leverage systematic ctas continue to leverage. The latest aaii survey does have Retail Investors net bullish for one of the first times this year. Jonathan thank you, thank you very much. The markets shaken being shaping up as follows. Up by almost two Percentage Points on the dax. Bunds big treasuriesd bid, asid, treasuries well. Joe biden to georgia tomorrow in an attempt to flip a state hasnt voted for a democrat since 1982. Typically among white college, educated voters. Heres kathleen hunter. Great to have you with us. Biden to georgia, harris to texas. What is going on . Its ate kathleen sign of days out before the election. They been to pennsylvania and ohio, states seen as battlegrounds, but they are playing offense right now. Georgia, in particular, texas as well, are states that democrats, two, three election cycles, states democrats have really wanted to be competitive in and seen opportunities to be competitive in, and they see election cycles where they are able to gain wins or come very close. The average in georgia shows the race is tied between biden and trump, so that, because theres inh an influx in urbanites the atlanta area and the potential to bring out africanamerican voters, theres a sense democrats could have a shot there. Annmarie internal polls must be showing something promising. This is either an historic political coup or a complete waste of time. Well find out. What about the trump side . How are things looking going towards the election for him, given the fact coronavirus is once again front and center for the white house, with a number of aides supporting vp pence contracting the virus . Kathleen the issue is front and center at a time where its not just hitting the white house and the inner circle, but numbers are spiking in the u. S. This is an issue thats been a huge vulnerability for trump and fellow in predicate and fellow republicans looking down ballot. Is handling has been panned by the u. S. Public, so theres a sense this is an issue trump can be vulnerable on. Theres been a lot of effort to ship the conversation to what they see as nation signs of economic recovery or the economy doing better than expected at this stage. Every time theres another set of headlines about people in trumps inner circle, especially so close to mike pence, getting coronavirus, that makes that harder. In particular, we are seeing problematic bowling for the president and there was a poll last week that showed he had actually was running pretty even with biden when it comes to peoples opinions. Thats an issue hes polled better on biden on, so thats a concern for the president. Jonathan is there a concern for biden, who hasnt been visible relative to a much more visible donald trump . Is the strategy to leave the spotlight on the president . What is the risk on that strategy in the final week of the campaign . Kathleen certainly, its been part and parcel to his message around coronavirus, that hes taking a safer approach. The visibility and exposure trump has embraced are not the Biden Campaign would argue, a safer, responsible way to handle the coronavirus. Thats the context in which hes placed his comparatively less out there approach to campaign before the election. Diagnosis marc short plays into bidens hands in that way. He has been campaigning. So has harris. We will continue to see that. Each site has its narrative when it comes to approaching coronavirus. We see that played out, and i wouldnt expect that to change much between now and the election. Jonathan great to catch up this morning, a week and a day away of wrapping this up. A round about 23 minutes away from the opening in the city of london, futures lower, down 1 on s p 500 futures. Were off. 8 on ftse futures. And dax futures not having a good monday morning. In the fx market, euro weaker. Other performance coming from the aussie. Thats the bid. Its the long end of the bond market. The risk aversion reflected in a treasury yield that comes down in the session. Annmarie these covid cases spooking sentiment. Lets get a rep of the first word news with laura wright. Good morning. Laura speaking of risk aversion, italy is introducing its strongest shutdown since may. It will shut entertainment, containers, and gems casinos, a casinos, and gyms. The World Health Organization is warning for a dangerous moment in the northern hemisphere. The u. K. Is considering cutting the tie in isolation for a contact of people who have tested positive for coronavirus. It could be reduced from two weeks to seven days. Northern ireland secretary Brandon Lewis said the move was being looked into, but any final decision would be led by science. China is lying out a new plan for Economic Growth this week in beijing. President xi jinping is holding a meeting to decide on the next fiveyear plan. Its expected to focus on technological innovation, economic selfreliance, and the cleaner environment. But the event is closed to the press. Key decisions likely wont be cleared before it wraps up on thursday. An oil tanker in the English Channel detained several people, ending in a suspected hijacking in the name andromeda. A Police Investigation will continue the reports the crew are safe and well. Ship wasnt carrying any cargo. Global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. Jon . Jonathan thank you. Up next, cutting is halep. The cfo joining this cutting its outlet. The cfo joining us next. This is bloomberg. Jonathan 18 minutes away until the opening of equity futures, not looking pretty, down about 1 on ftse futures, up 1. 8 on the dax. Lets keep in germany, where s p cut revenues. They expect the coronavirus to hurt demand until the first half of 2021. A first half of lockdowns hits italy. And dani burger traders. Dani lets focus on how those affect numbers, as in p shares down 30 . To be more specific s p shares down s p shares down 30 . They see 27. 8 billion. Previously, the high end of the target was 32. 9 billion. But the previous estimate assumed we would start to get economies reopening. According to s. A. P. , they say a lot of business customers have had to freeze various spending. That is hurting the Software Makers revenue for the year. The ceo on the Earnings Call also citing their cloud Business Travel, saying they have limited visibility, people traveling less means any sort of Business Travel programs surely will come under pressure. Bloomberg intelligence tells th em the big surprise to them was the sharp deceleration in backlog numbers. According to our strategists, it shows s. A. P. Is losing market share in the Cloud Software business. Jon, and marie . Jonathan really important conversation. Were joined by s. A. P. Cfo. Good to have you on the program. About a month into q4, are these Getting Better or worse . First of all, thanks for having me. Let me start by saying we are actually not unhappy about our q3 results, at least in as far as we can influence them. We saw in q3 quite a significant headwind, both on topline as well as profit side. The fact that we were still able to increase operating profit from currencies by 4 is actually quite good. Secondly, you have said to us before the challenges we are facing and travel and expense management, Cloud Business, which is significantly down. Backing that out, business in the cloud is up 26 . We feel comfortable with the directory we are on the trajectory we are on. Willrom our perspective, certainly look a lot different. Aurora look we have our outlook, we have adjusted. We will see a gradual improvement to lockdown easing. Unfortunately, the opposite is starting to happen. Therefore, our expectations of q4 are similar to what we have seen. Jonathan your language, youre not unhappy. Youre feeling comfortable. Markets are not feeling the same way. What is your message to them . Luka our key message is that we are building this company for sustainable, longterm growth. We see an excellent opportunity to double down and expand our market in the cloud, significantly. Were investing in this, both to new innovation categories that departmentng our rmd rmd Department Working on. As customers become more open to move their core workloads to the cloud to accelerate into this movement, take our customers by the hand, and transformed them to the cloud to drive faster digital, transfer that has updated midterm ambition over the course of the next five years, we want to reach 22 billion euros, which is close to triple the size of the Cloud Business we are employing now. We clearly see longterm opportunities for outside growth for an increasing cloud Growth Business and operating Profit Growth in 2020 three and be on. Annmarie your previous outlook assumed economies reopened. Its a different picture in europe today. Are you confident to say the worst is behind s p . Luka no. To be very clear, we assume to face a challenging environment probably until mid next year. Of course there is substantial uncertainty out there when covid impacts will ultimately start to dissipate, when a vaccine will become available, when travel restrictions can be eliminated. But our best guess this should be the case in the second half of 2021. From there on, we see great opportunities to further expand market share, in particular in the cloud because solutions and i concur, will be able to consolidate market, by far the marketleading solution and travel expense, and the end of the crisis will be an opportunity to increase their share. Then we have new opportunities i have been fighting, particularly the migration of our base in core erp to the crowd. That does not exist elsewhere in the market. We will propel our growth. Annmarie right now, no one is traveling, so concorde is under some pressure. Conversations, where do you see Business Travel coming back online . We had our Airlines Reporter talking about they want to potentially lessen the quarantine periods, this of isolation. , bankers and hedge funds isolation periods, bankers and hedge funds. When you see that coming back . Luka we are cautious ourselves. To be quite open, we are going to save s. A. P. , the lines share of reductions lions share of reductions. The majority of this will become from reduced Business Travel. We frankly believe that, also in the first half year, we should see significantly curtailed levels of travel, compared to precovid situation scenario. But certainly, this cannot go on forever. We are also preparing s. A. P. To be able to allow for Business Travel again when the situation is safe and secure. In the meantime, 28,000 customers rely on sap solutions or our remote implementation or Customer Support capability, certainly put to the test, and have succeeded quite well. Our internal consumption assumption when Business Travel should start to normalize again. Jonathan looked, just a final question for me look, just a final question for me. What is your advice to policymakers right now . As in capital is not a problem. It is not monetary policy. Bloomberg you like to see from policymakers that you are not seeing right now . Luka double down on innovation and visualization. The Public Sector has a great opportunity to lead the digital translation for the economies. They need to lead by example in many states, including germany. They are rather laggards in terms of adoptions of digital scenarios. That is the first thing. The second thing is investment stimulus. Its quite understandable and policymakers have responded remarkably fast and well across europe in immediate investment relief to companies are challenged. Certainly, s. A. P. Continues to be in a solid position. To now is the time translate those immediate safeguarding measures into sustainable investments. What we are doing in germany and europe around establishing the cloud infrastructure, and from a governmental perspective, fostering the buildup of trance european cases for european clouds, this is exactly the type of hopeless areas and investment areas i would want everyone in europe, because this is what will determine our longterm dependent longterm competitiveness in the market. Jonathan appreciate your time. Thank you. He is not unhappy. He has comfortable he is comparable. Lets get you your Bloomberg Business flash, your top stories with laura wright. Lisa u laura thanks. Airbnb. Bloomberg has seen an email to shareholders. They approved a 2 1 split. Hosting hoping to raise 3 billion in an ipo this year. Cocacola European Partners agreed to buy amatil. It creates a producer of the worlds most popular drinks. 6. 6value the firm at billion. The purchase gives the european Bottling Company an even Larger National footprint. That is your Bloomberg Business flash. Annmarie thank you very much, minutes away from the open, euro stoxx 50 down. 4 . Watch, your stocks to including lufthansa. Thats coming up next. This is bloomberg. Jonathan six minutes away from the open, not a ready week, down. 8 , down almost to present on the dax, were sections across europe, and a stalemate over fiscal stimulus plans. Your stocks to watch, heres dani burger. Dani we could see airlines, specifically lufthansa, under pressure, falling on trade gate. Memo,ing to an internal is closing flights and parts of its Administration Operation due to weak demand. Were coronavirus cases, more restrictions means lufthansa under pressure. Astrazeneca goes higher this morning. Vaccine,boration over reporting it had a robust immune response from elderly patients. They saw antibodies, t cells, the protective responses you want to see in a vaccine. Bloombergiemens, a scooter of people telling us that carlisle, the buyout island buyout giant, is going to be buying up for 2. 4 billion. Annmarie . Arie . 2 ,arie the features down definitely risk off decisively this monday morning. Jonathan they are going to need that extra rest. Abusy week ahead, a week and day ahead. Futures lower. This is bloomberg. Jonathan 60 seconds from the cash open in europe. Your headlines, curfew on the continent. Spain and italy imposing restrictions. China sanctions boeing and Lockheed Martin. On washingtons weapons deal to taiwan and deadlock industry. Stimulus talks stalling a week ahead of the election. Equity futures, shaping up as follows. The ftse, down off 1 . Dax futures near session lows. Zero stocks futures off 1. 7 . Bid into the bond market. This has been a tough morning to wake up so far for the equity bulls. More restrictions on the continent and in the United States, those talks breaking down. Againie and covid once becoming front and center with the white house with key Staff Members close to mike pence getting coronavirus. We are days from the u. S. Election. 25 and ftse down by we will get the equity benchmarks open in just a moment. The story is what is happening through the bond market in europe. It is fascinating to see the italian 10 year with a bid. Yields coming down a spacious points. Sovereign like behavior on a tough morning. There is the move in spain, off 1. 44 . Down on the ftse, off 1. 3 . Coming into the bond market, risk aversion. The long end of the german curve, 30 year yield comes down to about 18 basis points. That bid is in the bond market for good reason. Places like germany, switzerland, places like the United States. There is real concern about this second wave across the continent and what that means potentially for a second to dip second step in the economy. And ine fresh curfews italy, the strongest restrictions since a lockdown in may. Lockdowndraconian measures following the breakout in the spring. Jonathan about a minute into the session in europe, this is what things way club look like. Risk aversion monday morning, benchmarks lower. The ibex in spain, off 1. 4, the ftse in london down 1. 2. In the fx market, a stronger dollar story. Eurodollar off by one third of 1 . Cable, off. 25 . More pain going into the aussie. It is the move in the bond market that gets your attention. 30 year yields in germany, down another two basis points. In switzerland, down to basis points on the 10 year and italy getting a bid on risk aversion in europe. That is the picture of market pressure on the ecb meeting. Policymakers likely to discuss the impact that a spike could have on europe recovery and whether more stimulus is needed. We start the conversation with the head of fixedincome at Newton Investment management. Lets start right there. The pressure on Christine Lagarde this thursday. Walk me through how much pressure is building on the central bank again. Think much is going to happen at this one because the rise in cases is too soon to change direction so quickly but potentially come you are right. We are going back to more severe lockdowns across europe. I think the stimulus is more focused on the governments. More like the governments providing support than the central bank. Done a lot bank has of heavy lifting in providing liquidity. There is not much more they can do. They can make sure the wheels of the system are still working but essentially, the cash has to come from governments now directly to economies if we go to more serious lockdowns that threaten the economic recovery. Annmarie is there any doubt the program the ecb will favor . There is a lot more flexibility on that bond buying. Paul good question. Theyve got enough tools to make sure the bond market is working. As you mentioned this morning, it is working. Falling, buts are they dont need to do too much to make sure the very low negative yield strategy is working across all countries across all markets. More on the corporate side, theyve got the enablement to buy more bonds if Companies Require cash, require the money. Essentially, the wheels are working fairly well in europe. As far as issuance last week, there was a lot to do their. That money has to get into the economies, as well so that will take a wild to get to the levels of stimulating the economy, but i think there is something there. We will see more money flowing into the economies so im encouraged that we are seeing broad falls in yields across the european sovereign spectrum. Jonathan stick with us. I want to run through the pressure action. Ftse, off 1. 1 . The pain for the equity longs is across the european indices on the continent. Equities, really rolling over hard. As paul points out, it is constructive on a morning like this to still see the periphery firmer. Ofs is about the recovery europe, not the breakup of europe and that is an important distinction this morning. Nevertheless, to see the dax shave off the benchmark in germany, it is a tough morning. Annmarie tough morning for Companies Trading on the dax. Cfo,and we spoke to the the stock is down some 20 this morning. A little bit over 19 and this comes as s. A. P. Cuts their outlook. The cfo said to us he is comfortable where they are. Inking a deal , for 4 billion and finally, astrazeneca getting higher, up. 5 . Good news on the vaccine front. The university of oxford vaccine produced a robust immune response in elderly people and this is according to the Financial Times. Johnson and johnson may be rebooting, as well. Jonathan lets hope we get more downnews, but to see sap 20 on a morning where 20 minutes ago, the cfo said we are comfortable with where we are. If you are an investor in this stop this morning, i dont think you are comfortable seeing it down 20 in early trading. We talked about europe. There is a distinction between a recovery breaking down and the potential breakup of europe. For places like italy, spain, look atwhere, as you the periphery come are you confident weve made the pivot away from sovereign debt in italy and this crop across the periphery behaving like a credit and starting to perform like sovereign . Paul the important distinction is this is a european problem, not just a southern peripheral european problem. It is the countries in greater numbers, but it is seen as a paneuropean problem. The other thing is the response is paneuropean. Weve seen joint issuance of bonds. That is a sea change and regime support the european bond market and that is the bit keeping that sovereign bias to the broad european bond markets rather than just buy germany, sell italy trade. It is a key distinction they are together. They are fighting together and they are doing the ecb support, and also the fiscal support is a little more joined up then perhaps it was before. Annmarie you are concerned about the supply and demand dynamics changing at the Second Quarter of next year. Higher inflation, bond yields. Why do you think it is q2 of next year . Paul i dont feel quite like that right now. We are going into another wave of lockdowns, and clearly it is all about how do we actually protect capital the next few weeks and months, but after that, once we get through this wave, hospitalizations dont rise to levels, and deaths dont rise, i think we get economies gradually get reopened and back to normal. It is inevitable if you are a politician, you are not going to lockdown economies unless you have to, but you probably have to just in case statistics are wrong. I think we have to go through this phase and after that, we are looking at a broader economic recovery extended by monetary stimulus that is immense and fiscal stimulus, which is building and still quite supported well into next year. It is the mix of monetary and fiscal stimulus that leads to potential for modest increase in inflation expectations. When i say modest, in europe, i think you are looking at 2 , plus 2 at best, but a more consistent plus 2 rather than zero to 2 . That is the change, and weve got supply to work through. Weve got several economies, more government supplied, inevitably you get high bond yields. That can only happen if we are recovering. Week. t happen this it probably wont happen decide of the end of the year, but as we move into a broader economic recovery next year. Jonathan we hope it will. Paul brain from Newton Investment management. 10 minutes into the session, a tough start for the equity market. Tech stocks, down almost 6 , the dax off by 2. 5 , the ftse trimming losses, coming in at. 5 down. Big names in banking, pharma reporting in the coming days. Next, the earnings outlook for the continent. From london, good morning to you. Equities lower. This is bloomberg. Throughout the advanced countries, the pace of economic recovery is slowing and i cant think of any exception to that general statement. The president of cambridge weighing in on this market and economy. Looking at the price action, a tough start this morning. Down 1. 5 on the dax, on the ftse. A weaker sterling helping things out. Bid into the bond market, treasuries firmer. Across the continent, big rally germany, italy catching a bid. Risk aversion to start things off this monday. Your stock movers, back with us dani. Dani a big turnaround compared to what lufthansa did last week when he reported narrow losses for earnings. Shares gained 12 last week. Today, big declines in lufthansa share price, down nearly 3 after a report saying they are cutting more flights. They will temporarily close some Administration Operations because of weaker demand. That, all from an internal letter to employees. Thebig mover by far, biggest loser for the stoxx 600 sap. The cfo, telling you he is not unhappy with the numbers they reported. Analysts saying it is difficult to find positive news in this relief save for free cash flow. The Cloud Services businesses according to bloomberg intelligence, they are looking some market share, their concorde Business Travel segment, limited visibility with continuing rises in coronavirus if it keeps up. , the kleins, it will be its biggest intraday decline since 1990. 1996. Taking down other Cloud Company businesses with mini,ncluding cap ge falling 3. 5 . This will be its biggest drop in six months. The cloud involved in Services Space and has a partnership with sap, some bad news for s. A. P. Is also bad news for cap gem. Tomarie now, we want discuss the earnings outlook in europe with our guest. From banks, big pharma, energy. Paul brain at Newton Investment management, still with us. Earlier, many thought companies were sounding less negative. S p sap, the last outlook, the assumed economies would be reopened. It is not even november and we have fresh emergency restrictions around europe, record daily cases coming out of the United States. Do companies now need to reconsider this is going to be painful on the economic side and on the data side in terms of a highfrequency data about what consumers can actually do and have to recalibrate their earnings outlook . Paul i think im a little surprised of the reaction from Companies Going into this quarter. Most of us had been talking about the possibility of a second wave, worrying what would happen if there were further lockdowns. Have focusedanies more on the recovery opportunities and generally, we all discussed vshaped or ushaped, i think we are looking at ushaped, two steps forward and one step back. This is one step back and companies are thinking realistically. The other concern, the length of this hits to business. The longer it goes on, the greater the chance Companies Wont will essentially have to resort to cost cutting, laying off staff. Weve seen that coming through already and thats probably what Companies Hand necessarily planned for, but obviously it is a scenario, but i think we need to do that. This will be a tough winter for economies and Companies Involved in that. Lets talk about how you allocate through these issues. Where in the capital structure you want to sit, equity versus credit. They are calling this the golden era for credit. What is your take on the kind of conversation because im sure you come across it in the several months. Paul broadly speaking, you are better rocking credit than you are in equities at this level, only because companies are wanting to survive to pay the creditors. They cant cut dividends and so isso equity share price going to be a lot more volatile than credit. The investmentgrade credit market is not less opportunity than it used to and if we get a bid on recovery, you will lose money because government yields rise, and if you get serious economic decline, we will see downgrades and those fallen angels rise. In credit, we prefer the highyield space. Build iny has been to the credit market, but we have paused that because the current mood in the market, the current concern about a second wave. Jonathan in terms of where in highyield, the sweet spot has been bb between ig and highyield. Paul more it would be slipping into single bs,. It is a safer highyield. Reprice tohat has to the new supply coming. Youve got to b, do your credit analysis very well because not every company is going to make it. That is the sweet spot. Jonathan great to catch up. Paul brain, head of fixed and Income Investment at Newton Investment management. Equities, down off by. 25 on the ftse. Dax off lows, but down more than 2 . Bid into the bond market, stronger dollar this monday morning. On the program, moving the goalposts. U. K. Banks tightening lending standards as buyers look to beat the holiday. Up, we discuss british banking. This is bloomberg. To bebal investors tend western centric in how they view the world. The east is nothing like that. Not just china, but a number of countries in the east. They do a better job of managing the virus without ballooning fiscal deficits and printing money. Jonathan that was the cocio of Bridgewater Associates warning of limited growth post covid outside of asia. In europe and the u. K. , banks are turning away mortgage applications. The Financial Times reports british lenders are putting up rates to deter potential borrowers. Jonathan, always great to catch up with you. It is the first piece of tension between the banks and policymakers, fiscal authorities, and monetary policymakers. What is going on here . Jonathan well, the u. K. Mortgage space has been interesting because if you go to the beginning of the year, you have the bank of england telling lender value, we think you are lending too much and the virus struck. Because of the pentup demand, prices have shot up since then and the lenders have come back from 95 and have come on to 75 . That all makes sense because they are looking at values and say we dont trust this market. The other problem is you have a huge makes in the people who are trying to take advantage of the holiday. Make theot going to march deadline, so not surprising. It is something we have written a lot about over the past six months. I would almost say they are a little late to the party because we have seen rates gone up across value buckets over six to eight weeks. Jonathan we see rates go up before and weve still seen housing bubbles expand. Not for me to say this is one, but i want to jump from your perspective looking at the financials. Is there Financial Stability stored up here going into spring of next year . Jonathan weve got asset bubbles. Housing is always one. But if you u. K. , think about it from the bank perspective, the bigger banks hefty fund, funded a lot of provisions. For a lot of the banks, the irish, smaller spanish, we still dont know whether they are confident in the first half provisions will be enough because their p ls are so small relative to Balance Sheet that even if they get a little wrong, it will be ugly. All we will see is further divide between the strong bank , to not even the santanders, then for smaller weaker banks. They certainly need a regulator here because things like restarting dividends, you cant really tell some of the strong banksy cant pay anything, but you dont want Smaller Banks to start paying. Annmarie jonathan tice of bloomberg intelligence. We have hsbc, as well as Deutsche Bank this week for earnings outlook. Jonathan lets get to the price action. 26 minutes in, equities down. As we0, futures lower inch toward the u. S. Open but the european session, dax down. 2. 22 5 , ftse off. 4 and in the bond market, a bit across europe in bunds, on the periphery and in the fx market. Stronger dollar story. Coming up, the latest trade talks between britain and the eu, extended into the middle of the week. We speak to philip lambert. That is next from london. Im jonathan ferro. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Jonathan 30 minutes until the open in london this morning. The price action, we head lower on the ftse, on the decks, and on stoxx 600, down by 0. 9 . Down on the session in every single sector. On the ftse, it is the minus, ashley miners, the energy. The miners, the energy. Risk aversion bleeding through the equity market into the bond market. The euro softer, the dollar firmer through much of g10. Price action, and here is first word news with laura wright. Laura on that note, on risk aversion, italy is introducing its strongest virus restrictions since the end of the National Lockdown in may. It is limiting opening for bars and restaurants and shut down for jims. For gyms. There World Health Organization is warning of a dangerous moment for many countries in the northern hemisphere. The deadlock over stimulus on capitol hill seems to be continuing. House Speaker Nancy Pelosi and the white house are blaming the other for moving the goal posts and talks. The Republicanled Senate may not act before the election. After the s pying upgraded italys outlook. The agency left the rating on change left the rating unchanged but boosted it to stable. Italy is one of the regions most indebted countries with the debt gdp ratio of close to 160 . Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more this is countries, bloomberg. Aremarie the btps certainly rallying, down seven basis points on the yield. It is time for your brussels addition. The week ahead in european politics, the latest trade talks have been extended into this week. Brussels and maria tadeo, who has an interview for us. Good morning. Maria good morning to you. That novemberis is the new target, the moving deadline. We could have something on paper they could provide the basis for a deal. To talk about this, we are joined by a member of the european parliament, and most crucially, he says on the brexit group here in brussels. Mr. Lambert, the idea that has decided to stay in london, how do we interpret this . Stretche in the final of the negotiation, and i think indeed the British Government ultimately wants a deal, so we are going to do our utmost to have one. I have limited hopes as to what that might entail, but at least now the perspective is that we might have a deal after all. You say the u. K. Government wants a deal. But when do we get it . Do you think midoctober is realistic . Doubt ashas never been to whether the European Union wanted a deal. Not under any conditions, but we want one. There are doubts as to who would win out of Boris Johnson the hardliners, who want to cut all ties with the European Union, or those who want a more cautious is the closest neighbor to the United Kingdom. Both parties i think wanted deal. Will we have one by midnovember yes midnovember . Yes, we can. The question is how deep. We would have limited ambition. This will not be as good as membership of the European Union. In other terms coming there will terms,e in other there will still be an agreement between the United Kingdom and union and the European Union. Maria we have heard a lot about fish, and we know the french have taken a strong deal on that. Fish is symbolically big but economically small. The real thing is about a level Playing Field and the way you enforce it. So it is the government linked with the level Playing Field provision. These are major selling points because the United Kingdom does not want to be forced to align with e. U. Legislation, but on the other hand if he wants to keep assets to the single it follows legislation. How do you do that without that is the whole question. About fairtalk competition. In a world where there is a fear deal, how much do you the u. K. As a competitor to the e. U. . I dont fear it. The United Kingdom is part of the Single Market at the moment come and we have nothing to complain about. Moment, and at the we have nothing to complain about. Kingdom see the united being more pricey than some Member States like germany. I am not afraid of that, especially if we are talking nott trading in goods, trading in services. Maria when you talk to officials in brussels, the more hawkish voices say that ultimately the Prime Minister needs a deal more than the europeans do, that this is going to hurt the u. K. Economy, more than it will hurt the e. U. , and this happening why coronavirus is happening. Is that a fair interpretation, the Prime Ministers thinking at this point . In his head,am not but i think the predicament in the United Kingdom is dire at the moment, obviously, and it is i think that language to the extent that the United Kingdom is cornered and it has to make all these concessions is not conducive to a deal, so i would refrain from using this kind of like rich because i think it is in both parties interest using this kind of language because i think it is in both parties interest. Maria the tradition period will end by the end of the year, so if we assume we get a deal by november, when does it get to a vote in the european parliament, and how easy will that vote be pushed through . Phillippe it depends on the quality. I have trust in the negotiating team. We have had no surprises from each side, and since he consults with european parliament, the moment by moment basis, i would guess that the deal will be approved by the european parliament, unless of course we have prices sessions made by the u. N. Negotiators that would be impossible for the european parliament. But i dont think that scenario is very likely. Maria so when is the real deadline here . We really need that in the first half of november, because with the due process to be observed, the parliament is not just a rubberstamping document, so at least four weeks to profit this correctly to process this correctly. Maria my next question, how problematic could that be . We know it was very problematic in the past. Can it get proved ease that can it get approved easily . Are you worried about that or not . Phillippe despite all the infighting, i think that should be no problem for these measures. Maria just a final question, if you look at the financial market, they have ruled out that we will not get a deal. They believe the deal will come and they are pretty concerned about that they are pretty certain about that. Would you say they are pretty certain about that. Would you say they are wrong . Phillippe and we could go i thought that scenario would be the most likely. I have been thinking that for months. Then we had this later turnaround in the British Government where they used a onech by michelle vanier earlier statements. They did not say anything new except that they wanted to offer it as a seachange. But that told me that actually the British Government after all wants a deal, so i would say have won the ear of the Prime Minister, and that we ultimately are going to have one. Not a very ambitious one, but at least one that will avoid the transition period on january 1. Maria thank you so much for joining us on bloomberg television. It is always interesting to see the disconnect between what you hear with the politicians and what the market is pricing and murray . Jon . Annemarie . Jon . Jonathan thank you so much. We are going to cover this every single day. And we have a new deadline, a new deadline, a new deadline the first part of november. I can hardly wait to see what happens with these brexit discussions. The ftse. Own on we are negative on the stock 600. We are down zero point 9 . S p 500 futures, for our we are down 0. 9 . Futures, risk aversion down for basis points on 10, just above holding 80 basis points on the year. Elsewhere in the fx market, the u. S. Dollar stronger. The bloomberg dollar index up. 33 . Up, we hear from outgoing ubs director Sergio Ermotti. That is next. This is bloomberg. Jonathan 43 minutes into the session, equities lower this morning. Jonathan 43 minutes into the session, equities lower this money. It would propound sterling this money. The decks off by 2. 4 percent. It is not looking good across the continent. The cac 40, off by one person. Down by 52 point in switzerland. Theio ermotti is one of longest serving bank ceos in europe. During his tenure, one of the key questions as if european lenders can ever catch up to wall street. Sergio it is very difficult to predict, with what we see and what clients are telling us. Youre going to see changes, youre seeing allocation shifts. You are going to see new policies being implemented. Even if the Current Administration is confirmed, probably they will need to make changes. Manus you always say to me in interviews, it is an uneven Playing Field. I am comparing the wrong things. So could that be a constructive thing, where may be the level, maybe the Playing Field gets to federal levels for europe and the u. S. . We will see. Europe is europe improving, or is the u. S. Basically losing ground . We will say. I think it is difficult to see how europe can gain ground from where it is today without a significant shakeup of its the u. S. Is still not to be undervalued, underestimated because it has always been able to come out somehow stronger from any changes in administrations or politics. , maybe at the beginning you may see some dislocations when changes come through. Manus nine years, longest tendency. What do you enjoy most onthejob . Sergio i would say that i enjoy most of the days, the fact that it was always something new. I think the early days was ofaging the aftermath theater and other crisis for ubs , and starting to reposition a strategy, working on the execution and getting traction clients wases and the first focus. But then over time things have changed a lot. I have to say that i am not so sure i enjoyed that a lot, but i thosea lot of time with matters. I guess that was less of an interesting part, but at the end of the day that was a necessary part of my job. Manus if we look back at the strategy, you are probably going to be remembered most for looking at your trading background in your career, did that give you additional insight when it came to that . Sergio i think so. Not necessarily the trading background, but the fact that i have been working for many years , for a very large investment was and also later on i still involved in doing ng businessesnki before joining ubs. It reinforced my belief that you need to be a onestop shop in order to be successful in the Investment Bank in the Investment Banking world. And that sense, i knew that ubs had excellent capabilities in inities, in fx, in markets, m a, and strong franchises in europe and in asia. Goodhere and they were and enough to sustain a Business Model that would serve well clients and shareholders. Annemarie ubs ceo Sergio Ermotti. He will say goodbye to ubs this weekend, and can watch the full interview, the conversation between Sergio Ermotti and manus cranny. Manus cranny has been following him his entire tenure at the bank. Later this week, a settlement meeting, to impose retaliatory tariffs, 4 billion on u. S. Exports. Tomorrow, hsbc, one in a long list of banks reporting this week. Ofnesday, the ceos facebook, twitter, alphabet, all expected to testify before a Senate Hearing on eight speech, this information, on hate speech, misinformation, and privacy on the platform. The comments we want to hear from Christine Lagarde, back to celebrate her First Anniversary at the helm. Friday, another slew of bank earnings. West net group, banko subadult, joining us now is richard jones. Lets first start with the price action today. Lower equities, lower yield. You say this is a blueprint for what is to come. Explain. Good morning. I think what we are seeing in stocks and the dropping u. S. Treasuries and bond yields, it could be a blueprint for the price action we will see in the coming weeks and months. What is happening specifically today is disappointment that it looks like we are not going to get near term fiscal stimulus in the u. S. I think finally the market has given up hope on that. But also i think you combined that with the sheer scope of the pandemic skirt the pandemic surge in the u. S. And europe, it is starting to become evident to markets. Every day that goes by we get record daily infection numbers. On both sides of the atlantic you have government unable to assist dean the spread of the virus and all of it is starting to sink in with markets. I think there is still optimism there that we perhaps get this blue wave that a lot of people are talking about, that fiscal stimulus will come in the u. S. But it is not going to be a new thing. We typically see a robust stimulus in the u. S. In the early spring. So the long winter ahead of this, i think markets are jon we just lost the line there with richard jones, Bloomberg Live reporter. Catch up, although i didnt get to talk to you. I think it is not what is happening in equities with the breakdown, it is what is happening in europe. It is clear right now that the europe pn economy and the euro are facing that the european economy and the euro are facing challenges. We have a resilient euro in the middle of this over the last several weeks. Certainly, 1. 1821. It is only a little softer against the dollar, but it is still pretty strong. What does this say, what does the strong euro say to Christine Lagarde when she meets with the governing Council Thursday . Are they going to have to do another coming in with verbal intervention if the euro continues to go through that 1. 20 level . Jonathan that is a conversation for thursday. Up next, a special guest will be joining us. There is reason i am here and matt miller is not come and that is because matt is a new father. We can do that next on this program, and hopefully we can hear a little on the markets from edna. We will do that next, right here on bloomberg. Jonathan already important things to do here, first of all we start with price action. Equities down at 0. 5 . In frankfurt, the ducks off 2. 1 . In germany, doing his part for 1. 1 he dax off to matt miller, a new father, joins us now. Congratulations. Matt a pleasure to be on my show with you, and of course the greatest pleasure of my life so far is to see this little packet of joy, born on friday night. Really an over powering moment. It puts a lot of things into perspective. Annemarie she is so adorable. Look at her there. It is very, very cute. I remember when you and your wife met. I was there that evening, so it is nice to see it come full circle. What is the latest on the covid restrictions in germany . We were talking about italy and spain, but what about berlin . Matt before i get to that, i would just point out that my wife and i met in the most remarkable way possible. She was touring the floor of the new york stock exchange, and i was working down there. A two point six ounce baby in berlin. In terms of what is going on with the coronavirus come of course like the rest of europe, is getting worse and worse. Because my world now fully rotates around babies, my immediate thought was i wonder if more people are going to have babies as we go back into lockdown. What i saw an interesting study a couple of days ago, that fewer people are going to be or that people will be having fewer babies because they are going to wait longer to get married. Jonathan matt miller, we have got to get you go, sir. It was fantastic to catch up. Congratulations. Here we are, matt miller come a new father. I will be filling in all week with annmarie hordern. Looking forward to doing that for you through the rest of this week. Thank you for choosing bloomberg. Coming up next, much more still to come on bloomberg surveillance with Francine Lacqua and tom keene. With equities down, down hard as we kick off trading this week. Equities lower off the back of more restrictions in europe, and a fiscal stalemate in the United States. Eight days to go until that election wraps up. This is bloomberg. Its moving day. And while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. It only takes about a minute. Wait, a minute . But what have you been doing for the last two hours . Delegating . Oh, good one. Move your Xfinity Services without breaking a sweat. Now thats simple, easy, awesome. Xfinity makes moving easy. Go online to transfer your services in about a minute. Get started today. Francine viral surge in the west as spain declares a state of emergency. Record infections as u. S. Cases hit a record for the second day. Vexing host. Host. Cine the first batch may be available by january for some and blame game, nancy pelosi and mark meadows accuse each other of moving the goalpost on stimulus. House speaker says the chamber could pass a pandemic relief plan this week. Happy friday. Keene is in new york. Francine lacqua and london. There is a lot to talk about, so bringing out our top stories today, we need to engine breaks it because there is negotiating. We need to look at european stocks because of sap because it is eight days from november 3. Truly an eight day week and the United States. The first tuesday of november. The news flow is still