Transcripts For BLOOMBERG Bloomberg Markets European Open 20240712

Four days of losses is about to become five. Are down 7. 5 over the previous four days. Cross assets, we look like this. A bid into the bond market briefly in treasuries. It did not stick. It was a treasury market selloff. This morning, it is about yen strength. Dollaryen coming down on 0. 3 . Again. Rude is down 0. 9 mark wheret is that you have these massive producing countries like russia and saudi starting to worry. These are very hard prices to deal with when you try to balance your books. It all comes back to demand. Everything is about demand right now. When you have france and germany going into lockdown, that does not bode well. Euroyen is striking me this morning. I feel that for the first time it is acting like a haven. It is her membrane what it is supposed to do. Jonathan a bit of yen strength. Chancellor merkel giving a wakeup call to her fellow eu leaders. They failed to act quickly stop the pandemic. For more, our western europe managing editor joins us. Walk us through this at the moment. We know about the restrictions. What we are trying to gauge is how the people of germany and france are responding to this. Are they willing to do this all over again . Hi, jonathan. I think you see the majority of people willing to do this, but there is a fatigue that has set in, in germany and france and elsewhere, over once again having to stay home, to see all these businesses close. I was talking to a local shopkeeper down the street in berlin. She was very worried about how her restaurant survives yet another lockdown. The chancellor was speaking yesterday in the bundestag. She was interrupted several times by opposition lawmakers to the point where the president of the bunestag, a longtime member of merkels party, had to step into say, you need to let the chancellor speak. She was quite forceful in her response. She was really saying to these people who were interrupting her that what they were spreading were lies and disinformation, and that the people of germany needed to understand how serious the situation was in the country. Annmarie what about france . How are these new measures going down that have been introduced today . Have thefrance, you situation there on top of the horrific terrorist attacks. You have this twin situation happening there with this lockdown, the stricter lockdown coming into place and people very worried about the virus, and people also reacting to these attacks that have happened as well. It is essentially, president marcon has a lot macron has a lot on his plate and he is trying to balance all of these things. We have the french Economic Data out this morning, which looks really good, but as we move back into lockdown in the sense that these numbers dont really at her anymore because dont really matter anymore because there will be a huge economic hit next quarter. Jonathan chad thomas out of berlin. Onures are negative, down 41 the euro stoxx 50 futures contract. We can get that board back up there. Nasdaq futures rolling over, about two hours ago aggressively. Nasdaq 100 futures down by 200 percentage point. I want to continue this conversation with our guest. Lets start there. Lets look at the situation and i wonder at the difference you see looking at the end of q4 and looking out to the rest of q2. Guest thanks for having me on. The differences, governments know more about what happened. They know what they need to do, but they are later to do it because of fearing the economic consequences. I think the measures that are being taken to restrict activity and transmission this time are milder and not coming all that quickly, despite the foreknowledge, which means they may be less effective in slowing down what happens. But also the reason for all of this is the Economic Impact was contractionary and will be less severe than we saw in the Second Quarter as well. Jonathan what does that mean for you as you navigate the next couple months in this market with the cap lower . Do you want to take advantage of the situation in the next few days . Not so much. We have moved our strategy to equities. We are aggressively longer equities. We have moved the last few months, but most of those have been in the emerging world like andnesia, chile, russia, indeed malaysia and china. It European Equity markets, is around what it was in april. So there is still opportunity there. It may get bigger and more attractive before it narrows. I would say we are cautiously moving into some equity markets, mainly the ones that present more attractiveness right now. Annmarie you say you take these long exposures into em currencies like the brazilian real, russian ruble, turkish lira. Are you not worried about the risks . Covid, the election, geopolitical risks . Guest yes, we are always worried about risks. We need to take risks to get returns. It is a balance between the prospect, the attractiveness, and the risks that are out there. They are well known by everybody else and therefore presumably in the price. And turkey are trading at their lows for the year in real effective terms. Some are at their alltime lows. At one point, you need to that the expected return balances it out. Jonathan lets talk about how you balance out those risks. Lets get to the bonds board and the action of the last 24 hours. What was interesting this week is we had the bid come back into treasuries, but it was not big. The 10 year at 21 basis points. Where do you get those risk mitigating characteristics to balance out a portfolio . Where do they come from . Incomei think long fixed because fantastic hedge it is near zero or negative. But those markets are negatively correlated because as we have seen time and again, the Central Bank Response to a graver economic threat is to hold borrowing rates and yields at extremely low levels and encourage governments to borrow and spend to alleviate the economic damage. Long fixed income is a partial hedge, but not a complete one. We cannot hedge all risks. It is a case of balancing opportunity with risks by taking active risk in the portfolio where there where those two options are the most compelling and they discount the dangers that are out there. Jonathan tom clarke on the price action this friday morning. Good morning to you all if you are just waking up. Here we go again, futures down on euro stoxx, dax futures, s p 500 futures, nasdaq futures down by more than two full percentage point following earnings yesterday. Tal thirdquarter adjusted income beating estimates, coming in at 148 million. They say they are doing fine on 40 oil. As theyg about tou thao are the only ones have remained unscathed when it comes to dividend cuts. A big beat this morning coming out of the french oil major. For first word news, here is laura wright. Laura there are four days until election day and already more residents of hawaii have voted and in all of 2016 according to data from the u. S. Elections project. Many states are seeing a huge early turnout. In texas, numbers have hit 95 of the 2016 totals. Treasury secretary Steven Mnuchin is accusing nancy pelosi of pulling a political stunt in holding up a new stimulus bill. He says she is refusing to offer compromises with her all or nothing approach. Pelosi says it is possible to get a deal after the election. We sent him a letter, which you probably have seen. Here are some of the answers we are expecting. We are not expect in the mall to be in our favor, but we expect them to be in a place where we can weigh the equities and come to a compromise and negotiate so that we can go forward. Laura president Emmanuel Macron is bowing to stand firm in the face of islamist extremism, saying french values are under attack. It comes after a knifeman killed three people and injured several others at a church in nice. There were at least two other attacks in france yesterday. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Jonathan, annmarie . Jonathan thank you very much. Coming up, an exclusive conversation with governor of the Austrian Central Bank Robert Holtzman following a News Conference that is taking up more stimulus. Futures negative, up to four days of losses on the euro stoxx 50. We shave another 58 points off that benchmark, down 1. 3 this morning. Good morning. Not much of one if you are long. This is bloomberg. Greater china is the region most heavily impacted by the absence of the new iphones during the september quarter. Still, we beat our internal expectations in the region, growing noniphone revenues strong doubledigit and iphone customer demand grew through midseptember. Jonathan that was apple ceo tim cook on the call yesterday afternoon. Again, and weop drop lower. Nasdaq 100 futures down by 2 . Four days of losses on the euro stoxx 50. Is it about to become five early this morning . About 45 minutes away from the opening bell. I want to bring in dani burger for more on this. The outlook, they just could not give us one, could they . Dani they really couldnt. It is not just the outlook, it is the fact that we already knew these thirdquarter earnings would be good. We knew the estimates would be somewhat conservative. The fact that these Tech Companies beat, that is not enough for investors in this current environment. They need to give a positive outlook that shows the gains they saw this quarter were not just a blip, that it will continue, and that they are somewhat immune from the pandemic because big tech has done so much better this year with the idea that they would be beneficiaries from the stayathome trade companies, like amazon. But even if you are amazon, even if you give us a big beat on online sales, investors look at things like increased spending due to coronavirus, and that gives them concern. Apple, you had the miss in iphone sales. Facebook, you had them spending more, warning about outlook. Unless you are google who says, look how good our digital ad spending is, you were getting finished in yesterdays post market trading. Annmarie google is the only one up. Alphabet trading more than 6 . It is not just yesterdays aftermarket trading in the United States. We are seeing a selloff this morning. What is causing the companies to fall off . Dani concentration risk is really huge. It has been a concern for a long time. We talk about it to no end. You take that concentration risk and add it to a volatile environment where the economy is in question, where you have an election on the horizon, and you have this very increased volatility, and specifically these tech leaders being brought down. In some ways, s p should have been a warning shot for us of the dangers of when you have this high concentration in indexes in these momentum names. You are worried not only if you are a tech investor, but if you are invested in the greater index as well. Earnings continue to be an issue not just for the tech names. This is how brutal investors are. If you missed on your earnings expectation, you are falling most relative to the market, going back into deutsche banks database. If you meet expectations or beat, you remain flat. Investors really want to see some stellar results because right now they think this is as good as things get, but the thirdquarter is where we are at. Jonathan great work as always. I want to build on the words of dani. We talked about this the last couple days. It is not about the news, it is about how the market responds to that news. The message in the bottle of the last when he four hours. Even beats are not Strong Enough to satisfy this market. Tom clarke is with us now. What is the message in that, when you start to see numbers like what we got after the close yesterday, and the price action we saw in after hours trading . Think your correspondent called it brutal. That is one way of saying that volatility is higher, which is to be expected. If we are talking about big tech in particular, it has a very large but probably oneoff move to the Digital Economy that ramped up this year. That was very good whilst it was becoming new, but it does leave markets vulnerable to it not being continued at the same rate. Some sectors have done extremely well. I would not say it is huge. The post trading yesterday and today, these Companies Like you are mentioning are still strongest anywhere in the world. Annmarie would you suggest buying on this dip, given the fact that you say these are the Strongest Companies in the world . Or is it silly to go long on this market, given four days are left until the u. S. Election and we could see fresh locked and restrictions coming from other parts of the continent . Buyt no, it is not a recommendation. I was trying to avoid saying it was likely to be doomed forever in that sector. That i. T. Is a factor and the United States as a country is not a good value from the perspective of going long right now. There are four days until the election. I think the high gear of a contested election result has probably receded because there are only a few days left. But the outlook for the Regulatory Environment in i. T. Is largely dependent on what happens next tuesday. There are a number of factors to take into account, but fundamentally we do not think it is a very good value and that is the other side of the coin for having performed strongly for a very long time. We are not taking long on this dip. Jonathan great to catch up. Tom clarke. I want to check in with the price action. We are 40 minutes out from the open. Byare lower once again, off 1. 5 on euro stoxx 50 futures. Side, anited states really aggressive rollover on the nasdaq 100, down by three points. I want to turn to the bond market. Things really turned in the italian bond market yesterday when the ecb president teedo more stimulus teed up more stimulus. We have another bid, and it is back. More on the European Central bank decision, the stimulus still to come. Around the corner, an interview with the Austrian Central Bank governor. Futures are lower this friday. Youre watching bloomberg tv. Incoming information signals the euro area economic recovery is losing momentum more than expected. Activity in the Services Sector has been slowing visibly. Consumers are cautious in the light of the pandemic. The impact of the second wave on banks is going to depend on the bank spot. The European Central bank and the whole euro system will be extremely attentive. We will not just stand still. We are going to use all the instruments we have with the entire flexibility that we have, and i am clearly referring to pep more than others. We have little doubt given what of thecting as a result risks we are seeing that theumstances will warrant recalibration and implementation of this calibrated package. Jonathan ecb president Christine Lagarde striking a supportive tone as cases surged across europe. I want to check in on the bond market. It did not feel right, which is why a questioned it and i can confirm it is not right. The italian 10 year, the yield is up. Big yesterday that came in after those soothing words from ecb president Christine Lagarde. I want to turn to tom clarke. It was a Christine Lagarde that lent into the idea that Something Big was coming. What stood out to me was this idea that they will look at all instruments. Do you think a rate cut could be on the table come december for the ecb . Is probably not the most effective lever they can pull, but it is possible they will give more rate cuts and the problems with negative rates. Miss lagarde has made some missteps earlier in the year. In february, she said a comment about not being the ecbs role to narrow bond spreads. She will dog everything. The policy response to the markets and the only one that is viable forces the central bank yields rates and extremely low and encourage governments in a coordinated fashion to borrow and spend and stimulate their economies. Rates cut in the policy could be part of that. Plenty of already pledged any mission pledged ammunition. That is not that clear what they are going to do other than make more statements about being able to do whatever it takes. Jonathan great to catch up. Tom clarke. Annmarie, this seems to be the direction of travel right now for Christine Lagarde. I dont think she left behind much doubt yesterday. There is more coming in december. Annmarie i am curious, where is it coming from . It could be the pip. Back into the original qe policy moves, and what else could she have up her sleeve . Jonathan i am curious what it will achieve. That is the big question for me. Next, and ask conversation with the governor of the Austrian Central Bank. This is bloomberg. They are spiking up big. They are shutting down, they are locking down. I disagree with that because we are never locking down again. We locked down. We understood the disease and now we are open for business. Jonathan that was the president of the United States weighing in on the european virus resurgence that has been weighing on markets all week. Futures down by 1. 4 on the dax. Nasdaq futures rollover aggressively, down 2. 3 . We want to touch on breaking news coming from Goldman Sachs. Retiring of womanomics from goldman after 26 years. For many of you, familiar with her work out of japan, retiring from Goldman Sachs after 26 years. That is according to a memo. That headline just dropping in the last couple minutes or so. I want to cross over to the austrian governor, who is standing by alongside maria tadeo. Maria thats right. I want to go straight to the interview. We are joined by Austrian Central Bank governor robert holzmann, also a member of the European Central Bank Government council. I have to ask about Christine Lagarde yesterday. She sent a very clear message. She repeated many times the risks to the european economy are very much tilted to the downside. The economy is quickly losing, but we dont know the timing of the pandemic is. I think they said there is calibration coming. There is more money coming in december, no question. Is that the right way to read it . Guest i think this is a correct interpretation, with some caveats. She also said it is very clear that the december protections will make our decisions. Makewe have decided is to preparations to go through our whole portfolio and see where we need to recalibrate to be ready for december, but the decisions will be based on december data. Maria it is very tied to the data. There is more stimulus coming, but you also believe that recalibration means a whole package. What does that look like to you . Tost recalibration means redraw the conclusions for the implementation. We had a discussion about other instruments and we found out that we need to recalibrate based on what we have to expect, was thatall agreed needs to be able to contain matriculation. Consensusn emerging that liquidity by itself does not do the trick because the prices do not go up. We have to look at what can we do to the structure . We need the system to be more efficient. You say the pepp is working. Do you want to see more of it . What i am understanding is this is not just about adding more stimulus, it is making sure we work for it. Guest it is to say we have more than one instruments. You have the pepp. Whiche new instruments may be thought about from here to december what could becoming. What we see is we have to be a bit more disaggregated and it is not only the quantity. We put a lot of money on the table, but the inflation hardly moved. There is a rising recognition that quantity by itself does not do the trick. You have to look more into the structure to see how this can be fined tuned. Maria i am curious about something you said, new instruments come december. What do you mean by that . Guest i will give you a little hint. Itdont think we are out of yet. We will find out after the analysis, which is part of the ongoing strategic discussion and review what can be used more and what can be used less. Maria and what about rates . Interest rates . Rates will bet part of the discussion, but from what we currently see. There is no productivity. There is little effective Interest Rate change. This is a decision which will be made later on, that it will be moved, but this is something that must be discussed. Maria there is a lot of uncertainty right now in terms of where the european economy is going from here. We were talking about this huge rebound being called into question because we are going into lockdown. But one of the things you mentioned is that when you look at the economy you want to figure out what a for lockdown looks like, what a partial lockdown looks like. Isst the critical part based on the first lockdown where essentially everything was closed, with exception of the most needed services. Ishink the current lockdown to say we lockdown social activities for this reason and bring forward the closing of the restaurants. But we want to keep the Economic Enterprises and offices and schools, continuing as it is. There will be a lockdown, but the lockdown on the social side is far more responsible. Maria the way to read that is the Economic Contraction may not be as bad as some are thinking it could be. Guest this is the idea. Bringll lockdown does not the house results. You can have them it you are willing to interrupt the social interaction. This will be something you can do by regulation. It depends very much on personal behavior and it is the most is foot the most difficult to control. Maria when the market looks at the economy and prices in recession, are they wrong . Guest i think this is a hope, not a projection, that this double digit recession there will be a weakening, but it will not be a recession as steep as we had in the Second Quarter. All countriesing try to avoid and all countries want to stay on activity in order to avoid reduction. We will see the quarter four profits not as strong as the Third Quarter. This is likely to be weaker, but it will not be as steep as is currently envisioned by some. Maria but you are going with some consensus by saying it may not be as bad as it is, a mild lockdown may not be that dramatic for the economy. I wonder at the governing council, is there consensus around this, whether double digit recession is inevitable or not . The main projections, the not toos based, and much of the broad projections, which is our basis. There may be deviations, but we need to make sure that it remains at the level we had envisioned and not far away from that. Maria i want to ask you about the Market Action we are seeing today. You were sounding pretty dovish today, and that is not usual. You have talked about at times prefer the pandemic to normalize some of that policy. You are saying we are going to increase the level of stimulus. I am not going to give you details on that, but there is something happening in september. The yields are jumping today. Why is that and what is happening . Is there a disconnect between your message, or is this the concern that there is perhaps a lockdown happening there . Guest i would not call six basis points a jump. I would say this is something where the markets rise. It is a pricing mechanism by the market, and it is unavoidable. Nowe are priced in changes that didnt happen and im sure there will be nervousness on the different markets. But you still have the instrument of pepp. Market see how the reacts. Maria you reckon that any tension in the periphery is pretty much on called for today . Forretty much uncalled today . And that is a good point to make. There was an area which Christine Lagarde also repeated a message many times about the fiscal package and the fiscal stimulus. She said governments need to spend and the ecb will be here for the second wave, but we need to see progress on the National Level and we need to see that Recovery Fund happen sooner than later. Are you disappointed by the actions coming out of brussels, the signs that they seem to be dragging their feet . Guest i think both points are well taken. Needs that the governments to address it in a determined but cautious way for fiscal thoughs because as lockdown has economic fallouts, there needs to be as much as possible compensated for viable companies. But on the other hand, yes, the package is coming, it is dragging on. Everybody who knows the European Union or the commission knows it does not happen from today to tomorrow, but everything i have heard from the commission and they also had the discussion yesterday. It showed quite clearly they are prepared, they are optimistic that they will bring this to the table, they will have it ready. Beenis something which has decided before, and everything is working. Bickering lastminute is something that is part of the european discussion. We have got to leave it there. Fantastic to catch up with the. Thank you for joining us today. Maria tadeo from austria alongside robert holzmann. Lets get to the headlines from that particular interview. It looks like the hock on the governing council is in line with Christine Lagarde to do more, more stimulus coming in december. What i thought was interesting was the headline from the governor around and stressed rates around Interest Rates. Doug eurodollar off the back of that, a little bit of a bounce. Talked abouty using all instruments. The governing council might have at least one person who thinks rates will not be a part of that. Annmarie he said he sees little effectiveness in any Interest Rate cuts. Very interesting interview. The headline that maria got out of them was right to assume that lagarde signaled more stimulus. Stimulus is coming in december. It certainly is. Jonathan futures right now look like this this friday morning. Good morning to you while we rollover the s p 500. The nasdaq off by more than two percentage points. It is all about a fiscal offset to more restrictions across europe. Schemehe furlough ending tomorrow. We discussed what is next with adam marshall. This is bloomberg, with 18 minutes until the opening bell. Futures are negative. Jonathan 15 minutes away from the open. Lets get the price action. Equity futures down 1. 3 percent on the euro stoxx 50 on the day coming into today, down by about 7. 5 . What a brutal week. Eurodollar with a little bit of a bounce off the back of maria tadeos interview with the governor of the Austrian Central Bank, ruling out his vote for a rate cut, leaving stimulus on the table. Into the bond market we go. Treasury yields a little bit lower, 81 basis points. Down that we have seen over the last week continues, down 0. 9 . Lets turn to fiscal stimulus. The uks furlough scheme ending tomorrow. At its peak in may, it covered almost 9 million british workers. We are joined by adam marshall. Fantastic to catch up with you. Lets start right there. With the businesses you represent, what more do you want to see from the chancellor . Guest first of all, the furlough scheme that ends tomorrow has been a lifeline for a lot of businesses. It has helped them to keep people on. It has helped them at a time when demand cratered due to government imposed restrictions. The government put in place a replacement that was a lot less generous, and we had to lobby hard for that replacement to become more generous because we are not in a phase of recovery. We are always saying that the support on offer has got to become insert with the restrictions being placed on the economy. Annmarie it is not just covid, it is brexit. What is the outlook for the Fourth Quarter if there is no deal . Guest i think a lot of businesses are busy fighting the fivealarm fire that they can see very close to home. That is the impact of the pandemic on them. And for that reason, many have not been able to do as much preparation for the end of the brexit transition as they otherwise would have liked. The objective has still got to be to get a deal rather than to counter. Ensure that agreement ensures that trade can continue to flow with as few barriers as possible in the circumstances. If we were to see a no deal scenario, a disorderly exits, i think the impact on a lot of businesses and supply chains would be extremely significant because so many have been focused on dealing with the consequences of the pandemic. Jonathan we dont call it no deal anymore. We call it the australian deal. Since when did we get this rebrand that no deal was now australia . How naive do the government think people like you are . Guest well, you will never hear a rebrand out of my mouth. Agreement,eans no and that means a disorderly exit. If we have time as businesses to make pragmatic changes that are required to go from one relationship to another where we have the detail and the answers to the questions that are required, we can make that happen. If it is disorderly and those answers do not materialize because you have a situation of acrimony, that is bad for investment. Annmarie what is the government doing preparing you for that no deal scenario that youre calling, the australia style deal . Guest i refuse to call it the australia style deal. It means trading on wto terms. Lets call a spade a spade. Many of the changes that businesses are going to need to make apply either in a scenario where there is a freetrade agreement or where there isnt one. We have encouraged firms to focus on those changes they would make in any scenario. For example, making sure they have Customs Declarations ready to go for in points for imports and exports. A lot of chambers of commerce across the u. K. Are working on precisely that at the moment. There are also huge numbers of complex questions like around rules of origin, where goods come from, and what sorts of checks and assessments are required on them. A number of those answers are still in the air. Until we have a conclusion to those negotiations, it is very hard for firms to plan accordingly. Jonathan great to catch up with you. It is a difficult time and we appreciate your time this friday morning. Thank you, sir. Away rather, 11 minutes away from the market open. Next, we will get you the stocks to watch. Lets get you some real price action. Equity futures look like this. Down. And nasdaq off by more than two percentage points. That is the story of the market. It has been a brutal one and we are set to add to the pain this friday. This is bloomberg. Jonathan lets get you to price action. Equities lower, down by one point 3 on the euro stoxx 50. Off by about 7. 5 coming into the session. Nasdaq is lower by 2. 2 . Ahead of the opening bell, lets get you some movers. Here is dani burger. Dani we have talked about what is happening with air france and klm, because it is this idea of what was a positive summer month for a lot of companies. But the deterioration happening in the economy is starting to filter through not just companies, but markets as well. That is air frances story, cutting capacity to 35 what it was last year. Previously, they fell at year end. You had things looking positive, but then that turns into cutting capacity for companies and stocks taking a leg lower. Annmarie what is going on in the Energy Sector . Total a bright spot when you consider how bad it has been for the oil majors. Dani oil it self is poised for its worst month since march, since the height of the coronavirus pandemic, at least in the beginning of it. When you have these Companies Like exxon yesterday announcing they were cutting 15 percent of their workforce, that is what investors are rewarding right now. Cost cuts and things like total beating profit estimates. They are up by 1 . At the same time, they say they are doing just fine with 40 a barrel. But what happens when it goes far below 40 a barrel . We are trading in the mid 30 right now. This is a big consumption problem for these European Oil Majors and oil majors in general. Then you have things like air france and klm, the demand for capacity from airlines that is also disappearing. You have road capacity in the u. K. Going lower. The consumption picture for these companies is really graham. Is really graham. Is really grim. Jonathan after the close, brutal. This morning, it is set to continue. Dani it absolutely is. I think the tech story is also one of momentum and one of growth. In yesterdays u. S. Session, even before these tech giants sold off, if you look at what did and did not do well, it was momentum and growth that got beat up yesterday. There was this concern of this concentration where it was seeping through markets, and it is set to hit european markets today. Look for the big momentum names within europe to take a leg lower. I was discussing it with Stephen Innes this morning. He says they are basically paralyzed before the election. The only money they are putting in is a couple of fx traits. What is left is a lot of retail traders, a lot of fast money. If it is fast money based on these momentum trades, if that momentum is starting to revert, they are likely to continue to ride the wave lower. We were talking about that earlier this week about the big retail presence in tech. It could send it lower. Jonathan we can. Four minutes ago. Equity futures shipping up as follows. Turning negative going into the opening bell this friday morning. Good morning to you all. Euro stoxx 50 futures down 1. 4 . The cash open next on bloomberg tv. From the city of london, for our audience worldwide, good morning, good morning. Annmarie hordern, i am jonathan farrow. Ferro. Tech titans worry about the uncertainty on the horizon. Seconds to go until the cash open. The u. S. Haping up on stoxx 50, down by around 1. 4 . Futures on the week coming into friday, down 7. 5 , the worst week since march for european equities. Dax futures 1. 6 . Cross assets quickly, lets have a look at the bond markets, shall we . Yields were actually hi, back through 80 basis points. Annemarie, that data in the bond market, given the week we had an equities, not the followthrough you might expect. Annmarie yeah, Richard Jones actually pointed out this over at mliv, a friend of the show, and what we are seeing is a bleed in the equity market, bunds where they traded yesterday relatively flat. Right now, that risk off. That is what we are seeing in equity markets. It is only 8 00 a. M. In the city of london. We start to see money move into potentially more safe havens, jonathan. Jonathan lets get to the market open, annmarie, give it some life, let it breathe, give you a cross as that picture. Equities opening up lower by 1 on the cac 40 in france. We are down by about 1 , the ftse 100 up by about seven tens of 1 . Signing off just a little bit come up a basis point on a fiveyear to a 82 basis points. Isnt that a story . A bit of a bond market in italy, we unwind that a little bit, still negative 35 basis points on the italian twoyear. Check out for exchange this morning, i think the standout for me is just not on that screen, the japanese yen, dollaryen breaking down to a 104 handle. That is the price action, here is the top story. The city of lights is dark. Paris closing its cafes. For more, i would like to bring in bloombergs chad thomas. We have had the restrictions. Walk me through what life is going to look like through the weekend. Chad good morning, jonathan. It is really quite surreal, because in many ways, we are back to where we were in march of this year in germany and france and, quite rightly, many other aces in europe. Places in europe. We are at the point where we are going to basically shut down again. Bars and restaurants are closing. Leisure time activities closing. And theseabout gyms sorts of things where people would go and congregate, and of course the idea is they do not want people to congregate, so they shut down places where people would have a lot of interaction with one another. The big difference here, compared to in the spring, is that some areas are going to stay open, so the goal is to keep schools open, for example, and businesses are going to stay open, factories and the like. They are urging people to work som home if they can, offices are not closed, per se, but there is a push for people to stay home if they do not need to go out. Annmarie chad, very good morning to you. I was struck by that call that the leaders gave virtually amongst themselves. We only have a little bit, people close to that are telling us what was said. The tone that was struck was one of doom and gloom for the entire continent. What do we expect from other countries who are going to announce similar measures, france, like germany . Chad i think that is a very good point. Merkel has been sounding the alarm in germany for some weeks now, and she really took an opportunity on that call with leaders last night to say we are in a crisis across the continent here. We were too slow in acting, and we really need to move faster. We are hearing, for example, that italy is now looking at similar measures to what we have currently in germany and france. We are hearing that from sources, that the italy cabinet is meeting this morning. They may not actually take action today, but they will likely do something in the incoming days as the cases are shooting up there just like everywhere else was italy was the original epicenter of the outbreak in europe earlier this year. Jonathan hey, chad, great to catch up, as always. Chad thomas they are of bloomberg there of bloomberg. Lets get the board back up and look at the dax, the ftse, the cac 40 come up by 10 ends on ftse, the dax down another 1 , 128 off the benchmark in germany. Gimber,us now, hugh Global Market strategist at j. P. Morgan asset management. What kind of levels are you thinking about . Hugh yes, good morning. I think the challenge at the moment is we have all of these binary events coming over the next couple of weeks, so you have been speaking of the risk of new restrictions coming, potentially over the next few days. Weighing are already in the potentials of a vaccine, and we have policies in the way with brexit, so november is setting out to be a very hectic moment, and i expected to be remaining elevated for the next few weeks. The context of the verily we had over the course of the summer is probably understandable. The investors are pausing here and taking a breath. In terms of when we step in, i think if we are looking at europe, you want to look at a world which is more cyclical, when and what you start to see bond yields backing up. Some of those cyclical sectors are having a better outlook. I think you can see a catalyst for a move in that direction, a democratic sweep being one, progress on the vaccine being another, but i think it is understandable that investors want a bit more clarity at this stage. Jonathan hugh, lets talk about the bond market, first of all. With the ecb about to come in with more qed, they have effectively told us more qed, moreha, effectively qe, they have effectively told us that is what was going to happen. Hugh that could put some of the pressure on bond yields in europe. A similar story with the five vaccine. With the vaccine. At the margin, you can start to see it shift, so i think in the bond market, when you are working on the levels today, you do not need much of a move to start to change that narrative and just gradually give some relief to sectors such as financials that are being hit so hard by the decline in Interest Rates this year. For me, it is more about Global Forces working in the direction and helping to move european bond market yields a bit higher rather than something that is going to come from the ecb itself. Annmarie hugh, good morning. How does a more accommodative policy out of the ecb change your conviction trend, change where you may want to put money . We know she is going to deliver, but she left it open that all tools are on the table. We do not know exactly yet what the ecb is going to do. Hugh . Seems we might have lost the line with hugh gimber from j. P. Morgan asset management. Thanks to you, sir. Annmarie, we can talk but the ecb, i think it was revealing how much Christine Lagarde lent into the idea that they have already made the agreement. Once the News Conference started and she had read through the initial statement and then the q as, the first question and the First Response that really let everybody know the decision has already been made. All of set to look at our instruments and reset appropriately. Which instruments . We talked with the Central Bank Governors who flagged pretty clearly that rates, from his perspective, would not be. He also said something about new instruments and not really expand on that, so that is something to think about between now and the next december meeting, in the middle, back end of december. For me, i am looking at the bond market and what is happening with btps through the week. We have had an ugly equity market in the europe, and they has not been backed up by a big selloff in the italian market, largely because of the ecbs promise to stay in debt and when you have a market like we have through q4, and you have countries like france and germany talking about shutting down those economies again, it is clear where this is going. We need more fiscal stimulus, and the ecb needs to step in and keep that Government Bond market wide open, the periphery, to find itself. Annmarie, that is the big change this time around. Fiscal and monetary authorities working really closely together, and i think we have seen another example of that in yesterdays ecb News Conference. Annmarie yeah, and she set herself, given the risk there is, quote, little doubt that the ecb will act in december. Andrew said lagarde put it on notice, there is no need to read today. He is saying what you should take out of this is you should assume that the ecb will act in december. I think that is pretty certain, if the market is expecting it. I am just thinking about them are they going to use the peg, which is much more flexible, than if they went back to the more fundamental qe program that we saw under president mario draghi. I weren yeah, guy and talking about this yesterday, the floods ability around a program. You can go back and forth on this the flexibility around the program. You can go back and forth on this all day. The next meeting is a long, long time given the rise in europe at the moment. Things getnder, if worse, if the ecb will have to make a move before that play. Session,s to the if you are waking up stateside, it is an early one for you all. Equities in europe taking aother leg down, the dax up 5. 9 , the cac 40 in paris, france, we are down by. 75 . Check out futures on the nasdaq, down 2. 28 . Down 2 overnight. Those numbers from big tech were really tidy, but it was not enough. Theres your future right now, on the s p 500. The nasdaq down about 50 points. Worldwide, the final snapshot of what happening in of what is happening in the market. This morning, a clear stand is the japanese dollaryen, holding onto a 104 handle, 104. 32. Eurodollar come around the time that governor holtzman told bloombergs maria tadeo here was not for an Interest Rate cut. 11 minutes into the session, a fifth day of losses on the cards for the euro stoxx 50. This is bloomberg. This is bloomberg. Ms. Lagarde incoming information that the euro area economic recovery is losing momentum more rapidly than expected, activity in the Services Sector has been flowing visibly. Consumers are cautious in the light of the pandemic, the impact of the second wave on banks is going to depend on this, but let me tell you , the europeane central bank, and the whole european system, will be extremely attentive. We are not going to just stand still. We are going to use all the instruments that we have come up with the entire flexibility that we have, and i am clearly here p, more than pe others, we have little doubt, given what is expected, as a result of the risks that we are seeing, that circumstances will warrant the recalibration and the implementation of this recalibrated package. Jonathan ecb president Christine Lagarde could not have been any clearer, could she, about what could come in december. This is the price action 15 minutes into the session. Dax upwn by 1. 5 , the 5. 8 percent, s p 500 futures still negative, though, down by 1. 4 . 47 going into the opening bell a little bit later this morning. Still with us, hugh gimber from j. P. Morgan asset management. I want to touch on the stimulus package, price action in the market. Can you walk me through the diminishing marketing returns of the additional role of stimulus from the ecb . What impact is it going to have . Hugh i think you will see a peripheral bond markets and credit markets, because the statement from the ecb commits them to even longer, would be possible by the fixed income markets. What it is going to do for the rest of the european economy and the stock market is then going to depend on fiscal stimulus, because really, i think that this stage, all the ecb can do is limit any potential increase in borrowing costs and say to the government, over to you, now it is up to you to drive forward fiscal spending and 2021. So they can do that, but clearly they are not the only game in town. Annmarie just like jay powell, she kept squarely pointing the finger at fiscal stimulus. What kind of instruments could we see . She kind of left open the statement about other interest they are looking at, as well as halzolzmann. What else could we see in december . Largeit will be about how that increase is. I think it will look for another round of more generous financing for the banks. Personally, i think at this stage, a rate cut is less likely, because obviously with the, you always have two factors. Economics of that decision and the politics of that decision, and it will be a calibration of those two factors that will bring it together in december i think at this point, a rate cut even deeper into negative territory is truly difficult for them to justify into december. Jonathan lets get a trade for the brave. Long financials in europe. Are you willing to get behind it . Hugh if we get the s that will lined that up, but i think it is very thankful. First of all, i think the democratic sweep in the u. S. Is going to be a key factor for european financials, because of the dynamics in the global bond market. And that i think you are looking at that vaccine trade as well. At why if i look european financials have underperformed this year, they have struggled with interestrate outlook, with returning capital to shareholders. Those two and three factors have improved significantly through earnings season, the missing piece of the moment is the Interest Rate outlook. Jonathan thank you, hugh, great to catch up, hugh gimber from j. P. Morgan asset management. That is the difference between now and spring. The picture is obviously higher for the balls like hugh gimber, because the horizon is different. Back in march, the horizon was incredibly uncertain. Unrestricted,e what have you got . More stimulus. For that reason, the equity bulls Still Holding on. Equities lower, we bounce off the lows, just. 33 . 18 minutes into the session. This is bloomberg. N. This is bloomberg. Jonathan 21 minutes into the session, lets get into the price action in the eckley market,. 33 percent, just a little bit off the bounce in the first half hour at least. Equity markets elsewhere in the United States, futures up about 1. 4 . Plenty of earnings through the morning, with a pandemic researching, researching, russia is looking for a vaccine. We have the ceo of russias secondlargest bank, andrew kostin, the ceo of vtb bank. Good to see you looking well. I know you had covid19 many months back, and you look fully recovered, so that pleases us all. Lets start with covid19 could we see a second wave across europe at this point youd i wonder from your perspective, andrew, how that will bleed through the bottom line at the ecb . For banks,l, i mean, for vtb, of course, it was a difficult year. Though i have to say the potential was much worse. This year, the russian economy will have a contraction of around 4 of the edp, which is the risk sectors, and we have a relatively good first quarter, when the economy starts to recover. The most important thing that the russian government and president putin yesterday just confirmed it come as i will confirm. , that the russian government does not plan to lock down the economy again, so the number of people with the coronavirus are growing and russia. At the moment, Russian Health authority, russian medicine can cope with it, and we dont expect the closure of enterprises, a low down like we had earlier this year. I think that is the most Important News for russian business, because it is not a problem with the economy, it is a problem with health. Economicways fear an crisis for health reasons, for coronavirus reasons, and that is why our expectations are not as gloomy as they could become a bully, even taking the calendar, the number of six people sick people growing. Andrey, good morning. We could potentially see a biden administration, which many are saying more sanctions on russia. He has already called russia an opponent. How are you preparing for that change in tone in the United States and moscow . Andrey [laughs] of course we do not like to comment on american elections. We are afraid of being accused of any interference. But of course we will wait and see who is the next president. Of course the Trump Administration in, it is more hetectable for us, because has a record of the last four years. Though i have to say, they were not good years for the russianamerican relationship, and most of the sanctions against russia, including myself, were taken during mr. Trumps presidency. New,er we can expect serious sanctions from the new election, we will have to wait and see. I think my principle is to resolve the problem when it arises, you know, at the moment, there is a political struggle between the two candidates, as many are said. We know the position of the democrats, but we will have to see. We only hope that whoever is elected, we expected better relationship. We want this, you know, that is the answer. Annmarie but how are you preparing . Because every analyst is also saying if biden wins, we will see a selloff, potentially, in the ruble, and this can affect your company. Andrey well, i think the russian economy is quite strong at the moment. If you see the record of the last six years since the sanctions when into use for the first time, our economy suffered from the sanctions but not to each has anhat unresolvable problem for the economy. The economy is doing relatively well, and i think we will survive. I think we are quite strong, and america is not the whole world. We do business with china and other larger economies. We will have to wait and see. We can hope for the best. That is the only thing we can do. C, but weplan b, plan will not comment on this yet. Jonathan we will have to leave it there, sir. I know you have your annual investor conference. Good luck. Andrey thank you very much. Co ofan andrey kostin, the to be bank. Ceo ofhaping up vtb bank. Equities shaping up, ftse negative of. 1 , and in spain, the ibex just about positive, the dax down by about onethird, so a slow recovery starting to emerge on a fifth day of losses. From london, this is bloomberg. Om london, this is bloomberg. Do you think out of this pandemic countries will be willing to elect female leaders . We look at them and tend to project on them baggage that shouldnt be. Women are given the opportunity when no one wants to do the job. Women have a very clear objective and want to save lives. Women leaders, if you look at their careers, also built up a level of trust. Women have to be better at communication in order to be elected as leaders. This doesnt hold true for men. We need to get those stereotypes out of their heads and give women a fair run for leadership. Trying to change the this is correct interpretation with caveat, she also said its clear we use the december projections and information in december to make our decisions. What weve decided is to make preparations to go through our whole portfolio and see which area we need to recalibrate to be ready for december but the decision will be based on december data. Jon when the e. C. B. President lagarde said all aboard, she meant it. Heres the price action 30 minutes into this section now. Shaping up as follows in the equity market. Ftse raising losses negative . and the dax down. 40 lets get to the sector price action and break it down. Something were not used to saying for energy, top of the pile, energy up. 9 . And total following earnings, up by 1. 6 , adding. 15 points to the euro stocks 50. Utilities up. 40 . Tech suffering given no surprise after close yesterday. Sector 0 stock tech down. And the numbers weighing more so on the nasdaq this morning. They absolutely are and one of the keys here is really who is participating in this market. I was talking to an expert seconds ago and basically saying if youre an investor headed into the risk event of the election, you can wait on the sidelines and afford to wait the moment so whats taking place is more of the ill go sort of traders. And one of the other themes thats playing in european markets today european players being worried about the u. S. Election themselves, really changing their concentration to concern over the economy and when you get a lot of these more cyclical sectors getting beat up. The exception today as you pointed out is really remarkable is the Energy Sector but thats really a story of total showing they can cope with the 40 barrel story in oil there. Jon the other story for us and i know youve been looking at it as well, the safe haven bit that hasnt been there and a pause on that because i think its really, really important. Over the last few months, how many conversations have we all had with our sources about their worse youre not getting those risk mitigating characteristics out of the treasury market anymore. What are you seeing playing out . Whats playing out at this moment is really being concentrated on equities and because hedges are so expensive at the moment, a lot of people are finding it easier to cut and run rather than try to position themselves around these havens so gold bonds not giving comfort in the market but one of the weird quirks what were seeing is yen being the one haven starting to shine. It feels not long ago we were questioning whether the yen could hold the haven status and here it is maybe a swoon for the dollar yen this weekend will restore some of the confidence that perhaps this is where you do want to turn. Some traders on the asian side telling me a lot of the yen action today is both from real money and from some of the leverage players, seems to be surrounding some positioning ahead of the elections and maybe thats less of a concern of whats happening on the economy and more the political story but still otherwise look what is happening on the 10year yield. Youre getting nothing from that today and theres big assumptions of big supply coming to the market once the election is over. On thank you, dani. Getting a full handle on the dollar yen. Wait until you see the risk aversion feeding through with a market totally isolated by stimulus. Used to see in credit where the smart people were and where we were told growing up looking through the market you would say credit leads equity and now not so sure and maybe see the risk aversion more so in foreign exchange. Dani the yen and frank edging out but bloggers are pointing out were well below and modest to the key level and potentially starting to act a little more and the yen perhaps is a safe haven but not at the key technical level just yet, jonathan. Jon turning to the guest and getting to the tech earnings, Third Quarter for facebook, amazon and apple all three beating estimates and shares drop as investors are worried about the outlook and pleased to say matthew of Bloomberg Intelligence joins us now. Youve got the beat and then the outlook. Give me the first and then the second. Matt thats right and different sources to beat. The theme is around the big shift to online, you know, facebook, despite the sad boycott in july grew sales 22 in the quarters and people were short and shows you these big platforms have the power and appetizers getting back to selling product to consumers and the best places to do that are places like facebook and google. The equity numbers rose a bit mixed and iphone sales were a bit of a disappointment, down 20 year on year and really ipads and ers on working from home. China was a bit of a disappointment for apple, too, down 29 year on year and the lowest revenue number there since 2014. Amazon as usual kind of selling future amounts of product to people, 96 billion in sales and an outlook looking about 1120 billion to sell next quarter. I think the problem is their costs are going up again which always has been an issue with amazon, great revenue numbers but then spend the money on improving the products and people waiting for the next quarter, the next quarter for the real profits to come through on that enormous beef of a business. Shocking because they expected a steep jump in sales, matthew. Given whats going on in tech, why are the shares falling even though these were pretty substantial numbers, deep down are investors concerned about long term outlook or is this a moment to take profit . Matthew when you look where the shares are and how much they are up year to date, i think its really just profittaking. I think its not huge surprise that these businesses have done really well in the last three or four months as, you know, spending has picked up again. But obviously with lockdowns coming particularly in europe and question marks how long theyll last in the u. S. , its early a fragility to the market and will you see campaign tisers shutter and will people stop spending. The question is how much they can sustain this 20 , 30 growth through 2021. Jon great to catch up, appreciate it. Matthew bloxham of Bloomberg Intelligence. Bringing up the waitings of the nasdaq 100. The apple stock, the waiting weighting of the nasdaq 100 is 13 . You see whats happening in the individual stock and you get an understanding why nasdaq futures of off by 2 pun, off 1. 28 and a large chunk is from apple. Lets get you first word news with laura wright. Laura the french and spanish economy surged in the Third Quarter but that rebound is being derailed by knew restrictions across the continent, the jump of over 18 for france and 17 for spain follows huge slumps and there are four days until election day and already more residents of hawaii have voted than all of in 2016 according to data from the u. S. Election project. Many states are seeing a huge early turnout, the number of votes in texas, for instance, have already hit 95 of the total 2016 vote. Treasury secretary steven make chuchen is accusing nancy pelosi of pulling a political stunt in holding up a new stimulus bill and refusing to offer compromise with her all or nothing approach. Pelosi says it is possible to get a deal after the election. Global news 24 hours a day on bloomberg quick takes you powered by more than 2700 journalists and analysts in more than several countries. Ann marie, arent you happy and pleased we arent talking about fiscal roulette on capitol hill anymore. We want to see a fiscal package and can all settle on that point. What were all happy about is we dont have to pretend these two parties ever really were negotiating for a preelection deal. Ann marie its nice to see the saga wrap up at least for now, at some point well have to see some sort of fiscal stimulus support out of the United States. What was it, july the last time individuals got those extra Employment Benefits . Theres a struggle happening in america. Jon coming up on this program, four days to go, and an historic voter turnout. Well discussion the election next. The eyes on washington, d. C. Through the next week. This is bloomberg. Millions of american peoples have already voted. Over 75, im told, 75 million. And millions more are going to vote before this is over. And i believe when you use your power, the power of the vote, we literally are going to change the course of this country for generations to come. President trump its very much bigger than any g. D. P. Weve had. Go back to the 1950s and then its less than half. This is the greatest number, 33. 1 . If you ask me two weeks ago, i would have said ill take 12 . 12 would have been very nice. Nobody heard of 12 . 33. 1. Let me tell you what theyre going to do, i never even thought of this one, they wont even talk about it. This is the biggest event in business in 50 years. Jon joe biden and President Trump campaigning in the swing state of florida. 80 million americans have already voted. Its not just the president ial election we need to watch, the senate race equally important as it could tip who controls congress. Jennifer joins us now, quick take reporter. Whats the latest . Jennifer good morning, jon. Democrats really are within reach of controlling the u. S. Senate and you know what, theres 35 senators up for reelection and theres a lot of close races im personally paying close attention to but i think everybody should be paying close attention to. First off, i want to start in arizona, my hometown, and also a really interesting race because mark kelly is going up against senator Martha Mcsally. Mark kelly is of course the husband of Gabby Giffords who was shot back in 2011 but hes also getting edging very close to senator Martha Mcsally and whoever wins the race assumes the seat the end of november which is different for these other seats and the reason is thats the seat of the late senator john mccain. Another one to Pay Attention to is senator Lindsey Graham is holding on tightly to his seat against a democratic challenger who i dont think he expected but Jamie Harrison has raised a record amount of fundraising and thats another very close race. A few other states, georgia has two seats up for grabs. If theres not a majority a candidate wins on election night, that will go to a special Runoff Election in january. Two other to Pay Attention to it in iowa joni ernestst and Susan Collins are holding on to their seats. Theres a lot of close races to pay close attention to. We hear iowa is going there this weekend. Jennifer, thank you. Well continue the conversation on the election. Yesterday we spoke to the chair of the republicans and now its ndice, thank you for joining us this morning. You heard jen say shes from arizona and all about the swing states. Youre from central pennsylvania. I want to ask you, although pennsylvania is really known for gas, joe bidens comments about moving away from fossil fuels in general has not bode well with many who work in the industry, will that hurt his chances in his home state. Good morning. I dont think so. I associate more with the pittsburgh side of pennsylvania, a lot of coal and Steel Industry and the city reinvented itself and we see it across pennsylvania. Investing in new types of energy and green energy and thats something that is being recognized more by pennsylvaniaians we need to move in this direction and were reinventing ourselves and will happen with joe biden. Ann marie what about the other swing states, President Trump is doubling down in iowa and mike pence went there and is going there this weekend. Given the swing states, we see the midwest states pick up in these covid cases. What are we expecting if joe biden wins the white house in terms of covid . Will there be a mandate for mask wearing, what kind of mandates can we see on the National Level if he was given a chance at controlling the pandemic . Candice joe biden in january suggested a plan how he would handle covid. The biggest contrast to President Trump in office now is we would see a lot more coordination between states that decisions wouldnt be independently made in washington alone without consultation with governors even at the local level in certain cities. Applying particularly to the midwest before this gets out of even more control right now, we would need to consider things such as mask mandates, for example, as weve seen in germany which can really have an impact. Jon what decisions have washington made that you think are the wrong ones, candice . Candice they really havent made many decisions and we see the effect right now. Many Small Business owners in the United States had to close their businesses, over 400,000. Many people, we have unpress consented job loss out of work and weve seen how quickly the senate can move when they want to with confirming new Supreme Court justices. It would be great to see that type of action when it comes to providing Financial Assistance right now to americans who are suffering. Ann marie candice, thank for you joining us. I want to ask you one more question regarding voter turnout. Were seeing record numbers, about 60 of voters in 2016. What campaign do you think this helps . Candice i think it definitely helps the democrats. And speaking from our position with democrats abroad, weve also seen in germany five times higher voter engagement, particularly for some of the states you mentioned, arizona, iowa, registration deadlines for americans overseas goes through november 3 and were really trying to even up that voter turnout and sign more voters. Jon fantastic to catch up with you. We appreciate your time. Thanks very much. Equities this morning about 48 minutes into the session were lower by a little more of. 10 with the ftse. With the business flash heres laura wright. Laura netflix is raising prices for the most popular u. S. Prescription. They say the americans are willing to pay more and will increase to 14, the price of the 4k service is going up by 2. Starbucks is signaling the worst is over after it captured the fiscal year with better than expected quarterly results. The key u. S. And china markets are inching closer to growth but didnt quite get there and marks the Third Straight quarter of declines. The size of the drops are not as bad as the spring. Exxonmobil is cutting the global work force by 15 by the end of 2022 and includes 1900 u. S. Jobs, mostly in houston as well as previously announced layoffs in europe and australia. The cuts are on efforts to curtail spending after the worst string of quarterly losses since the takeover of mobil in 1999. Thats your business flash. Jon and ann marie. Jon the price action 50 minutes into the session this friday morning, things arent as bad as they have been the last week but thats a low bar. The ftse up by. 2 . We are negative 11 points there. More still to come as we round out the trading week and look ahead to wrapping up that election. This is bloomberg. Weve found ourselfs in a dramatic situation. This affects all of us without exception. Renewed challenges to Public Health and the Growth Prospect of the euro area. What was the best strategy, lock down the elderly, the most vulnerable, test alert, protect. None of that is sufficient in the current situation. We need to take it further. Obviously there are painful choices. Because theres no restrictive measures, it has no impact. We are wondering when we ill come out of this crisis. Now is the time for patience, determination and for discipline. President trump theyre spiking up big and shutting down, theyre locking down. I disagree with that because were never going to lock down again. We lock down. Weve understood the disease. And now were open for business and thats what it is. Jon the latest of the reaction of what the week was and this week we woke up to the brutal analysis in europe through q4. 54 minutes into the session, we bounced back a bit on equities the are down by. 2 and dax down. 6 . And a fifth day of losses for the euro and coming into friday down 7. 5 . Down another zero,. 5 . Next week is massive. An election, a fed decision, and payroll is friday, all coming together, ann marie. Ann marie you have to think, the selloff, five days, its been brutal. Running course for the biggest monthly loss since march. You and i both remember how terrible march was. You have to think going into the week you just set up, do you want to be long . Who is getting in long this morning, you have to ask yourself. Jon heather, fantastic to catch up with you, a final thought of the price action, looking ahead to the next week, what are you looking for . Heather good morning. Today it seems to be trying to get ahead of next week. Youve got possibly some profit taking ahead of the election amid fierce about a disputed result. You also have renewed questions about tech valuations amid Apple Earnings and also youve got the increasing fear of lockdowns in europe thats hanging over stocks and other risk assets. So today is probably a lot of position clearing end of month going into what you said is a huge week next week. Jon massive week ahead. We appreciate your time. Heather burke there. Equities rolling over for the fifth day down. 8 on the dax. Ann marie, isnt that the story, the. 8 , rolling over a bit compared to the week weve had here in europe. Ann marie a little bit of a repreeve but a few weeks ago we were waiting for the dax to turn positive and the s p and the nasdaq has already gone. The dax down year to day 13 but not as bad as the ftse down 26 year to date. Whats so worrisome and we talk about it a lot, were not even into the winter months and were seeing those restrictions come into play in germany and come into play in france and italy we learned from chad maybe next on the list. There is serious pain left to europe and this economy. Many are questioning are we due for a double dip recession. Jon euro stocks down 26. 4 . Thank you. This was fun. I can tell our audience is pleased about it. Next week well have ann marie back and ill be gone and stick to my normal routine for bloomberg surveillance. Coming up on the program on this network, well be catching up with Francine Lacqua and tom keene on bloomberg surveillance from the city of london this morning. Good morning to you all. Equities low for a fifth session. This is bloomberg. Francine four does ago, the u. S. President ial races narrowing in iowa. Joe biden narrowing in battleground. Month foreuros a Solidarity Fund during lockdown, and 7 million for partial employment. Entech and tech sales overnight. Good morning. London. Cine from happy friday. A lot oflong moves, not only because of tech in europe, its interesting to see that equities have not infiltrated some of the current trees but we will see what happens. Tom