We got a boost from the bank of england a little early around. We will hear from the governor in just a moment. The cable rate, 1. 31. Keep an eye on the critical lines in the sand as we come through tomorrows session. We are starting to see yields a little bit higher here in europe today. A little bit of stabilization may be in the bond market after yesterdays big move, but a much flatter curve. Lets dive into the bank of england decision to boost its bond buying program. 150 billion, a little bit of a surprise. The market was expected 100 billion to be added to the program. Why the bigger number . That was the question i put to the governor. Gov. Bailey i think that was what we learn from our earlier experiences with covid. It is important that we act both quickly and that we act clearly in scale. That was an important consideration for us. The second thing is that we have to meet the inflation target sustainably over time. So a lot of work we did on our forecasts, employing the perspective policy decision into it, it was clear to us that 150 was a quantum of qe that delivered a sustainable path of inflation to meet the target. Guy what is the economic effect difference between the two numbers . Gov. Bailey it is much larger, obviously. One is that it does have an impact on the cost of financing and on the Interest Rate curve. Secondly is the quantity effect, if you like. It puts more liquidity into the economy. It takes up assets that are not as liquid and puts assets into the economy that can be used in consumption and investment. Of what comes next, is qe still the most effective measure of delivering monetary stimulus to the economy after this announcement . Have you discussed other tools, for instance, yield curve control . Do you have an idea of the sequencing in which you may use them . Gov. Bailey a lot for Central Banks has changed in recent times. We have had to look far more at the tools we have available to back ineas if you go time, it was really a choice over rates, Interest Rates, and what you did. And we have done that. Weve had to look at the role of forward guidance, the rule of quantitative easing, and we are doing the work obviously on evaluating whether there would be a case for using negative rates. We dont have a sort of fixed order of use of tools. I think that is appropriate. It would always be dependent on the state of the world and the state of the economy that we found ourselves in. Guy looking at the economy, looking at the report youve delivered today, questions are going to be asked around the world as to whether or not economies are going to start to doubledip. Youve got a negative number for q4. What is the risk to the downside on the letter number on the letter number for under shoot . Gov. Bailey that is a question of the evolution of covid itself. Weve got a very substantial Downside Risk on the forecast, and a lot of that relates to how covid itself is going to evolve. I would emphasize that. The other thing i would emphasize about the past of gdp and activity in the economy is just to bear in mind that at the end of the Third Quarter, the end of september, relative to a level before covid, so at the end of the last calendar year, the economy is about 9 down in terms of the level of activity. When you think about the quarterly path, we have to overlaid on the fact that these are huge numbers. These are just unprecedented numbers. That fall in q4 does come from a starting point that is much lower thans was precovid. Guy the trajectory is different. Gov. Bailey yes. Guy as a result, what do you see is the biggest risk for the economy . We talked about covid. What about brexit . What assumptions are you making right now . You have agents giving you information. What assumptions are you making about the preparedness of the british economy for brexit come the start of next year . Gov. Bailey we continue to condition and use the forecasts on the view that there will be a trait agreement, and it will be the trade agreement the government has set up to get. I think that would obviously be an outcome we would all welcome. We continue to use that because the negotiations and talks are obviously still going on. Actions speak for themselves. Guy bank of england governor Andrew Bailey speaking to me a little earlier. We got rishi sunak, the chancellor, splashing the cash. You do have to wonder whether one is related to the other. The low rates allowing the government to borrow more. Alix if there is one mmt experiment, many say it is the u. K. Lets break it all down with kit juckes. He joins us from socgen. ,hat were your thoughts particularly in terms of the growth forecast the boe perceives in 2021, 2022 . Kit i think it is inevitable that the growth forecast gets worse and the recovery gets pushed further out. The virus cant have no impact. There are huge uncertainties about what goes forward. Already, the u. K. Probably has the most downward revisions to growth forecasts through the course of this year for the average of 2020, 2021 of all of the major economies, and that is not going to change with this latest lockdown, nor would it change if we were to get a no deal exit from the European Union. That would be another source of downside. It is pretty miserable. The bank of england is not very optimistic, nor is anybody in Financial Markets. Guy why is the pound doing what it is doing . Kit because there is in a north amount priced in, more than anything else. Firstly, remember, we priced in a huge amount of risk within weeks of the referendum all the way back in 2016. In terms of the tradeweighted value of sterling, it has been wandering around at the bottom of historical ranges ever since. I think from where we are now, there is one big risk remaining, which is negative Interest Rates. You listen to the conversations you are having about what is the purpose of more qe. The bank of england is buying the gilts that rishi sunak needs to sell to finance everything he is doing. That seems to me to make sense. Be the first major economy with a big current account deficit to experiment with negative Interest Rates, justified because it hasnt gone so badly for countries like switzerland, denmark, the European Union, and japan, seems to me to be a huge risk to run. Sterling i think goes on trundling in its current range unless we get negative rates, at which point it gets significantly weaker. Alix what do you think the conditions would have to be for the boe to do negative rates . Kit no deal brexit, i think. They are doing the work now, so it is something they will be ready to do at the beginning of the year. If we go back to wto terms for trade and we get what they think will happen in terms of a real hit to growth at the beginning next year, that i cant see how they avoid it. But if that doesnt happen, i get the impression they would rather do more qe than run the risk. Guy lets talk a bit about what is happening with the euro. Weve got a euro around 1. 18 right now. We could get it out of its recent range. This is the time when we are going to hear from Paolo Gentiloni in a few minutes, and we are seeing the euro zone get hit hard by the virus. Do using that the upward trajectory through on dollar . 20 towards 1. 25 that a lot of people still have penciled in is viable if we continue to see the economic trajectory look like it is at the moment . I appreciate there is another side to this, and that is the dollar, but nevertheless, the Economic Situation in europe is not getting better. It is likely to get worse. Kit the dollar side is critical, and that depends in part upon the election, but more than anything else on what the fed continues to do. I dont think we are going to reopen the real yield cap between the eurozone and the u. S. But i think the critical piece from the european side here is we are in a bleak environment as long as europes response is an aggressive fiscal response, preferably still a joined up aggressive fiscal response. Ultimately we can go back to where we were at the start of the euros fall, when the u. S. Had aggressive fiscal policy and the europeans relied entirely on the ecb. Ecb, solve thehe problem of the second wave, and i dont see how the euro gets through 1. 20. As long as we get a decent fiscal response, i thing we change the mix of policy and it will lead to a strong euro. I dont think that it is going to be a runaway from the euro. I dont think we will be at 1. 25 by christmas unless someone gives us good news from somewhere. But i dont think we will make it through 1. 20 at the moment, except within the context of a weaker dollar across the board. But it is that fiscal reaction that is critical. Alix let me ask about the dollar because it feels let the u. S. Is where the europe was. We are in some ways totally reliant on the fed to support the economy. We are not going to get that 3 trillion blue wave stimulus. So what is the Downside Potential for the dollar here . Kit the biggest Downside Potential for the dollar is a good potential. It is that the Global Economy starts to recover. If someone finds a viable vaccine before the end of the year, and that we get production up around the world, you will see capitals flow out looking for better yields and better opportunities all around the world, and it will be one of those good weak dollar stories that i shall stand and cheer for years preferably. If it is what we have at the moment, which is a nervous, slightly uncertain weaker dollar that is just because of overreliance on the fed, the you will see it reelected with currencies like the yen and the swiss franc leading the way. I dont think you can go that far because all of the big open economies what the eurozone, we cant really thrive if the of us economy cant get some growth. So it will be a smaller, more modest weaker dollar, and a less healthy one. What we really need is a longerterm story. For now, the market is just buying into a narrative that yes, we are going to get less of a trade war, we are going to get less of a fiscal package, and we are going to get more fed accommodation over the next few months. Do you make of the narrative shift we have seen over the last day or so . We went from pricing and a blue wave, and that was good. We have now gone to a divided government, and apparently that is good also. Is it sustainable . And if so, for how long . Kit i think the first thing it does is it says that there are lots of narratives, but as long as the narrative comes back to the fed is even more accommodative for even longer than the last time, it is getting hard to imagine how they could be more accommodative, then apparently in terms of risk sentiment, that is enough to float every boat higher. Else is really just a small additional feature of it. We site what it means for this or that sector in the equity market, but in the end, this is a risk rally born of super come at it if monetary policy, and we wakeup today with more optimism in the market. That is what we will get. The trouble with these narratives, you say we are jumping from one to the other, we still havent finished counting votes, last time i saw. So we can change them around. The bigger test in that sense will be whether the fed goes in and does ease more now, or waits for a bit because at the current point in time, things arent yet so bad that they should be doing more qe. The fed has a sort of messaging problem, given how much the market is asking of them. Alix lets go to the fed a little bit more here. If they wanted to either signal weve got your back, we dont know the outcome of the election, but weve got your back, what do they need to change in the statement . If they are going to pull the trigger today, what can they do that would actually be meaningful . You are looking at a seven handle on the tenure. What is that going to do . Kit i am struggling to see what they could do today, given we have liquid markets. But if they Just Announced they were buying more or buying further maturities, if they announced yield curve control, you could get a bigger reaction. If you get anything that talks about extending securities, but why would they . What the European Central bank did is what the fed should be doing, which is making it clear that it looks as if we are in for a slightly bumpy time on the economy. E meet again in a few weeks unless things are brighter than we it would expect them to me expect them to be, then we will meet them. Guy financial conditions are actually looking pretty good. Theyve got better over the last couple of days as volatility has come down, as the equity market has improved. I would have thought that would be one of the key metrics they are watching. It is not getting works right now. It is getting better. Presumably the fed just sits on the sidelines. Wouldnt that be the message . Kit making it clear that they are ready to act again soon if need be. I think the fed is probably looking like everywhere else, where some of the Economic Indicators are slightly worrying for the next couple of months. That the labor market improvement is slowing quite significantly at this point in time. We will see what tomorrows numbers throw out at us. That will give us a better read. They are probably nervous about what could happen in terms of slower activity through the fourth quarter. They may have been nervous at the way the curve was gradually bear steepening until the election turned it round. Sense in doing anything today, but they will be conscious of the fact that the market is permanently bidding up its expectations, building up and betting up its expectations of what the can do, so they have to do something to nod to that. If we need to act, theres plenty more we can do. Guy always a pleasure. Thanks for your time. Greatly appreciate it. Coming up, we will continue to focus on the euro economy. Could europe be headed for a doubledip recession with new lockdowns . We will have an exclusive conversation with Paolo Gentiloni, European Commissioner for the economy. As we prepare for that, the vote cap continues. Alix we are looking at a live shot now of fulton county, georgia, where Officials Say ballot counts are almost done. That encompasses atlanta, so we might get some information there. Georgia state voting, mentation manager says that they are counting voting, mentation manager says that they are comeing provisional overseas, and military ballots as well. This is bloomberg. Guy live from london, im guy johnson. Alix steel is a new york. This is the european close on bloomberg markets. The European Union sees new and says the economy wont reach previrus levels until 2023. Joining us for an exclusive interview, Paolo Gentiloni, European Commissioner for the economy, and my colleague in brussels, maria tadeo. Thank you very much for your time today. We greatly appreciate it. The numbers you published today are prelockdown. How big is the risk to the downside, relative to the figures you have given us today, for both the European Union and the eurozone . Of course, we have a risk to the downside, but our figures are already considering the fact placehe rebound that took in the Third Quarter began to lose momentum already in september, and then in october, new measures, restrictive measures, new lockdowns began to take place. So the figures we are presenting today, which is a negative growth of 7. 5 in the euro area and in eu with some slight differences, or figures that phases two different that we are in. Quarter of very strong economic rebound all over europe, and second, the phase we are in and that probably will affect the fourth quarter, which is the interruption of this rebound. The two things mixed together gives us these final figures of the negative growth of 7. 5 this year, and a relatively slower passive recovery for next year because of the consequences of the situation we are in now. Maria the question in europe has to do with what the next year looks like. I know this is very difficult to predict because you have no visibility on the virus at this point, but do you think, given what we know, that we can avert a doubledip recession . Yes, iwell, definitely think this is possible. That all our policies of the Member States and our common policies keep very we should mind that not prematurely withdraw our of fiscal stance as much as it is needed, and for as long as it is needed. Avoid the stall we are in now and transform itself in a second recession. This is quite possible, but it depends also on the strength of our support to the economy. That islarge part of the joint recovery fund. Doesnt need to be bigger than what it is, particularly as we go into a second lockdown phase . This well, i think that decision was so important. We also find it historical for the European Union, but our main task now is to implement it. Quite optimistic that we will be able to implement it in the right time. , keeping this supportive fiscal stance means keeping our extraordinary fiscal roles in state aid rules that we adopted in late april and march, and this allows Member States to continue to support their. Conomy with renewed strength i understand that also the ecb will continue in its program with renewed strength, and this is also the reaction of the new phase of the pandemic. Guy lets just break that down a little bit. Lets talk about the rescue fund, first of all. You just said you are confident that europe will implement the fund at the right time. What is the right time . What is your timeline for getting the rescue fund over the line to make sure that it is actually able to start operating . And when do you think the first euro will actually be spent from this fund . Euros arrivedst to Member States on october 20, after the First Issuance of a common debt from the European Commission. 17 billion of social bonds targeted to this supportingthat is schemes in Member States. Interestingy emission because it was oversubscribed 14 times, and this gives a good look also to the future, a much bigger emission we will have for the next generation eu. The timing of this next generation eu, which is the bigger envelope of our recovery fund, is that we have to approve National Plans in next spring. This will allow us to have the first this burst meant of 10 of the amount to Member States in late spring next year. That can only happen if there is a deal over the european budget because nothing is agreed until everything is agreed. Today it seems nothing is moving it seems something is moving. Does that mean that by the start of 2021, the European Recovery Fund is going to be fully operational . Is that what you are predicting now, that it will be operational by the start of next year . Paolo well, i think what has happened in the negotiation between the council and the European Parliament is a very positive step forward, and this could allow the European Parliament to give its consent in the session. To kickstart the process of ratification from national parliament, and this process will i think allow us to keep the timing that we have in mind. This, of course, is extremely important because the implementation of this initiative is crucial not only for the recovery, but also i think for the strategic evolution of our fiscal policies in eu. Of 2021 ishe start still the gold. I want to pick up on something you said, were you told us the ecb could potentially take action in december. I know you are not going to tell less exactly what the ecb is going to do or what you would like the European Central bank to do, but do you have any conversations with them in terms of coming up with joint action . Paolo i think they are confirming their extraordinary programs of purchase in facing the pandemic. Ins was absolutely crucial the months behind us, to keep the Financial Markets, to keep the balance in the Financial Markets to avoid instability, and i am sure they will continue with their efforts. Earlieru mentioned it in terms of the oversubscribed social bonds. Can you give me an idea of what you are thinking about in terms of total green bond issuance, social bond issuance, and if the ecb is going to have to buy them to develop this market in a speedy way . , we took aou know couple of very ambitious commitments. This fundhave all of of 100 billion euros through an issuance of social bond. This will make the European Union, the European Commission maybe, one of the first global issuers of social bonds. At the same time, we decided big emission, the 750 billion emission, wouldbe partially through green bonds. 40 , ofhreshold of course, we know that the thank you for your time. We deeply appreciate it. Thank you for joining us as well. Happening in the markets, we are packing things up in europe. Lets work our way through exactly what we are seeing. We will see the final numbers in a moment with the auction process done with. Nevertheless, another positive session for european the stoxx 600 by 1 . We pushed up nicely. Thestandard story today is continuation of the drop in volatility we have seen. We are also seeing continued strong bids for the euro, the pound has had a good day as well. The euro up by 8 . Im told by the end of the week it will get up to 180. That would be a positive signal. The pound through 130. We have seen the governor of the bank of england didnt list for hundred 50 billion when it comes to qe. Sending his fellow scheme through march. We are seeing a much more even session when it comes to the bond market. Yesterday was a big flattening. Tradesere a series of being today is calm calmer. You can see how little bit the terms of yields dipping higher. Ftse 100 by 3 10 of 1 come under programming continental markets. Underperforming continental markets. Governor, 5902. By 2 . Up european markets in general remind remain recently suppressed reasonably suppressed. We will talk about the Banking Sector in a moment. And commerzbank not having a good day. Net Interest Income not looking particularly good at the moment. That is a very flat curve. Euro zone. Tes in the astrazeneca talking about a vaccine by the end of the year. It is having an impact in the rest of the business. We saw that in the numbers early on from astrazeneca. A good few days from the health care center. In germany, a tick in yields. We were talking discovery earlier, that is a much more positive story today. Another weis rising are focusing on is the sector cartels fall again europes four largest markets as they continue to put pressure on economies. We spoke to fullsize and ceo, he spoke with our managing editor chad thomas. Wave, wethis first have good oil intake, very high product momentum. We have many new products coming on the market. I would even say that because of the lockdown there was a demand postponed, so we have a healthy forre relatively confident the next two weeks to keep production high and maintain down do not get into shut the disruptions of supply supply chains. I think it is wellmanaged. If people now remain disciplined, and if we could drive the case once again down, we do not get to the targets of by. Health systems run i am optimistic we can manage the crisis and get through it. A Democratic Program probably will be more aligned with our worldwide strategy, which is to fight climate change, to become electric. Sayhe other hand, i would over the past years, we could establish a trustful relationship with the Trump Administration and government. I think we did a lot to contribute to build america, investing a lot in plant factories, car plants in chattanooga. Yes. At the end, i think this is the position america has to take and we only can watch and we have to adopt it ourselves. America will key region for us. Volkswagens ceo. Lets switch gears to what is happening in the Banking Sector. The numberalked with of top executives about the challenges they are facing. Issue on theis big capacity to pay the dividend, which is certainly a major factor which explains why the european Banking Sector is down this year. I think valuation, which makes no sense compared to the longterm potential of the banks. We are in a state where governor really knows what is going to happen. We will closely monitor over the next couple of weeks and months. The ecb is being responsible for making sure they see a clear line of sight from an uncertainty perspective in light of what we discussed about the second lot down. We do see dividends for payments, but whenever that happens we have reserved those dividends, allowing us to continue our business while at the same time providing to our shareholders. Lets talk about it. Basically, credit beats estimates. Commerzbank and ing missed. Lets talk about it. To steven arons, joining us. I want to talk to about i want to talk about commerzbank. Other banks that have big Investment Banking divisions are doing well. You have seen that with bnp. Encapsulates the european economy much better. It does not have the benefit and is feeling the effect going through job losses and also covid. Is that a way i should eric arise this story . Yes absolutely. Is that the way i should characterize this story. Yes. Commerce bake has been hampered by negative Interest Rates. And of course, corona. For trading,nt which is benefiting on this massive trading boom. The mass of trading is boosting them. They are there is a tale of two cities. To either of them last . There were other releases but now there is another shutdown coming. The win in, can trading we have seen from these guys sustained . Those are questions everyone is asking and no one has an answer. There trading boom, it is all potentially on corona, how it unfolds. If it stays with us, that is probably i do not know, but i assume it is good for trade, but that will ceo earlier today said they expect more hedge in the fourth quarter. But, she was incapable of saying how much it would be because this all depends on how bad a second lockdown would be. Guy in terms of reshaping business, we are seeing cuts. Is doing it, ing is doing it. Saying is there reflection of the needs to cut costs, lay people off . Is there a belief that once that has happened, these banks emerge better and healthier . The bank drop is still very difficult. You wonder whether or not we are in a position where the operating environment is moving in front of them, getting more difficult, they are always going to have to play catchup. I think that is true. It certainly many of these banks, most of these banks will be shrinking over the course of the foreseeable future. It will be one round of cost cuts after the other. Back, thereot going is not going to be notch note much growth. Manyis been going on for years. There is not much they could cut anymore. There is nothing else they can do. Always a pleasure, thank you for your analysis on these Big Bank Numbers we have been working our way through. Lets take a look at where european sox have settled. Most on the continent, the ftse of fiscal andt monetary policy. The chancellor and governor and the bank of england next door to us. We have got a press conference coming up at the top of the hour with boris johnson. We will take that on the cable show. Jon ferro and i will be walking you through that on bloomberg radio. This is bloomberg. Live. Ika gupta coming up, tune in live at 2 00. Pres. Trump transition, this is a big statement. It has to be replaced by Renewable Energy overtime. Giving the oil industry substitutes. Up that some slip cringed with. Pennsylvania is among the states still counting ballots after the u. S. Election. You can see the intricacy of the natural gas pipeline, really centered and a lot of red states. Lets talk to scott sheffield, pioneer is one of the biggest shale players in the basin. Fresh offff a call, of energy. It is good. Does a biden government potentially mean to you . You on yourbe with show. There are two key races buteorgia for the senate, at the end of the day, democrats will have 48. I do not see a lot of changes in regard to taxes on the industry or any major changes if bidens president at i think the Biggest Issue he has already said he is not going to ban fracking but, the question is whether or not they stop issuing drilling permits. That would have significant effect on the gulf of mexico. The Permian Basin in mexico, and also whelming. That is doubly the Biggest Issue. We were emissions like trump did in 2016 we were totally against that. We wrote a letter on their behalf. Ing would want to rollbot rollbacks with those trump efforts we have no federal land, so there is no issues for pioneers. One of the things you can do is get stricter methane emissions which would raise the cost of drilling. You would have to find a way to deal with emissions. Why would you want them . Back about 18e months ago, we have led the effort on the Permian Basin. Pioneer has the lowest intensity. We are now below 300 million a day my flaring in the Permian Basin. In its entirety, both new mexico and texas. We need to get that number down to less than 100 million or even 50 million per the next step is to go to going forward. It is in the world bank already, it is something i hope we adopt over the next five years by 2025. Clearing needs to stop in the permian and the that we havenk divided governments with divided governments, the pressure to make this happen is lower . The industry has started to talk credentials,s esg but do you think the lack of leadership out of washington, particularly when it comes to agree new deal, will slow that process down . It will slow the Green New Deal process down, but the industry is already committed. Talking to trade associations and other groups in the Permian Basin, we have got to take flaring off the table. It needs to get down to essentially zero flaring throughout the u. S. Shale planes. I think it is going to be industry driven. , starting 18 months ago, people are catching on. Almost all of the companies are improving their flailing there flaring. I think it will be industry driven. We need to take it off the table so it does not have to be led by either biden or trump. One area is the Texas Railroad commission that does issue flaring permits. Jim wright, the republican took that seed. Is that a bad thing . No. Talking with the commission, we have been talking with the commissioner and the chairman. They are both very supportive. They are getting more aggressive about stopping issuing flaring exceptions. We have already seen positive response. If crystal would have been elected as a democrat, it may have happened sooner. The Railroad Commission understands how important it is to take flaring off the table in the Permian Basin. The comments you were making on the call a little bit earlier, talking about waiting for opec to make its decisions before you start sending out your budget for next year. What do you expect from opec . Wethere are two big issues talked about. One is the vaccine. The second is when we get the vaccine distributed. The second is the opec meeting on the first. The monetary committee, they met recently. They were talking about not adding the 2 million they are even talking about deeper cuts which may be needed. We need one of those two things to happen. There 2 Million Barrels a day on the first, or deeper cuts. U. S. Shale is going to be flat. We have declined 2 Million Barrels a day from that 13 Million Barrels a day we peaked in february. We are down to about 11. If you take out the recent hurricane noises in the gulf of mexico, we are going to be stable. 2020 no more growth until 22023 and it will be light in terms of the shale industry. Isnt that just basically asking opec to step back so you can produce more . Are is basically what you saying, right . No. It is all about cash flow. Our shareholders have spoken over the last 18 months, everybody wants production to be essentially flat. Very minimal growth until it is really needed. Distribute us the cash flow. We are moving forward with a strong based dividend over two point 5 and a variable dividend 3 5 overpproach the next several years. You brought up a vaccine earlier, we may get it over the next few months. What impact you think it is going to have in terms of demand for product . In london, we are in lock down again, across europe we are in lockdown. Is tickingse count higher, i am curious to how you see things developing. People are not going to behave the same way. How do you see the demand outlook . Why did a survey with a lot of our employees. The first thing, when they get a vaccine, they want to jump on an airplane and travel. I think it is pentup. There is pentup, significant demand and people tired of living at home. I do not by the fact that everybody is going to stay home, there will be no more driving or airplane flying. I am very confident we are going to get back to 100 Million Barrels a day sometime in 2022. I think most people will take the vaccine and in the first half of 2021, you will see the pentup demand release. You mentioned opec, the need for them to cut a cash flow issue. Investors have spoken about payback. You have a sizable variable dividend, what do you think the importance of that is to get investors back in this sector when investors are hardpressed to bet on energy . I think it is all about Free Cash Flow. We neither get our free cash our year we need to get cash flow yield into a doubledigit number. Moving ineral people that direction in our industry and that just going to be the main driver, establishing the variable dividend or something that will make us stay within a based dividend. They and can you cant just put any free class any Free Cash Flow back in the gross. That is key. Do you think it is going to get investors to come back . Yes i do. It is all about returns. We have to take away the myth that we are going to start seeing an upward cycle. 50 60, and the next 12 to 24 months, there is still this fear factor that we are going to return to growth. We have to convince them with a track record that is going to take a couple of years. When youurious as to are at nesting in the business, is it going to be in growing new production . How much is going to be going to decline rates and stem whatever gap you have to keep production flat . We give a range on the call. 0 5 we came out last quarter with pioneer establishing a 5 growth rate. We will make that decision on what to take both companies combined. We gave a range out today, 0 5 . Dependent on to be what happens with the vaccine and opec. Longterm, we intend to grow both companies at about 5 per year, that is the output of our model, but it is focused on Free Cash Flow. Giving back returns to the investor. It is a pleasure to speak with you again. Thanks for your time. Scott chatfield. We continue to watch results from nevada. They are due to be released in a few minutes. President Trumps Campaign saying it is filing suit to stop improper voting. Their current electoral vote count has 98 up. Has biden up. Joining us now is greg jarreau. Seen a number of pieces of news over the last few minutes. A georgia judge dismissing a lawsuit by the Trump Campaign, according to the michigan ag, lawsuits lacking in merit. We are getting pushed legally, but i am curious as to where we stand on the vote count. Or all of the vote counts still on . What does that do in terms of timing . The vote count continues as we speak. Joe biden still has the path to 270 electoral votes. We have had updates in states including georgia where President Trump leads, his lead is down to about 15,000 votes. In democraticunts friendly counties including atlanta that have narrowed the president possibly the question is, will there will there be enough joes for line biden this not need to win georgia to win the presidency. An updateld expect soon. Joe biden, with those two states would get 270 electoral votes. Where are we at with losses right now . It seems to be flying around. There was one in georgia that has been dismissed. I expect donald trump is going to be very litigious. This is something we see every two years paradise expect litigation, asks for recounts. See nothingt, i that purely stop any counting. The Trump Campaign is questionably questioning how the ballots are being tabulated. In pennsylvania, and georgia, he is leading but it also comes as trump as with as trump is waiting for votes in nevada relate counts, the Trump Campaign would need to put him over the top. It looks like they want to oppose counting in states where they are ahead, but they need votes to overtake biden in nevada. Thank you so much. Dictionary of stats. That wraps it up for me and guide in the u. S. And london coming up with david westin, Equity Group Investments will be joining him. As we camped out to the vote. This is bloomberg. From bloomberg world headquarters, i am david westin. Welcome to balance of power, where politics meets business. Another day of suspense in the election. The world waiting for results in nevada, a state that could take joe biden to the magic number of 270 electoral votes. As we await more results which could come out this hour, welcome our chief washington correspondent kevin cirilli. At what are you looking kevin kevin . President trumps they are expected to announce new legal filings in this battleground state. That is right now largely amongst early voting counts, trending toward joe biden. That would put him at the magic number of 270. The threshold needed to clinch the presidency. In addition to legal action the trump