Yields have continued to fall in italy. Stocks in europe. We will provide the details in a moment. The s p is up around. 5 . A stable day. We are seeing a rotation back towards the tech stocks. The top the stoxx 600 benefiting from the ecb largess, which were now expecting more of. The stoxx 600 up 1. 12 . Aboutyou are talking Christine Lagarde saying the ecb will be there for the second wave of the virus. The Central Banks primary tools will likely stay the same. Lagarde while all options are on the program, the have provenros their effectiveness in the current environment and can be dynamically adjusted to react to how the pandemic evolves. They are therefore likely to remain the main tools for adjusting our monetary policy. Alix joining us from frankfurt is paul gordon, who leads bloombergs western european Central Banks coverage. Bdp is getting the most out of that statement from Christine Lagarde. Yields down. What was your biggest take away about how she said she would support the economy . Single most important thing is the reliance on the pandemic emergency purchase program. The ecb has two purchase programs. The other one is the older asset purchase program. The pandemic one is more flexible and toward stressed economies. Christine lagarde has said that is one of our primary tools and that is why btp is benefiting from that. Guy is this a tacit acceptance we are now in the realm of monetary financing . The bank channel is not working. There is no demand from the private sector. In the public sector, this is the green light for italy and everybody else that wants to borrow as much money as they can at this point in time. The ecb will back it up. It is a similar story in london with the bank and the treasury. Is the ecb firmly on that road . Paul you would have to define monetary financing and obviously the Central Banks would tell you they disagree with that assertion. What they are saying is the ultimate goal is price stability. At the moment you need to stabilize the economy. The way you do that is pumping money into the system. You no excess liquidity has surged. It is not that the banks are not lending it. Bank lending in the eurozone is up strongly because banks have taken on loans to get them through their cash flow crunch through the pandemic. There is a lot of money floating around. What that does is push down borrowing costs, that allows governments to borrow heavily, as you are aware they have done, and spend that money and keep the economy afloat. A point. , up to the crunch comes when inflation starts to pick up and that is when Central Banks have hard decisions to take. Guy always appreciate your input. Bloombergs paul gordon joining us from frankfurt. Joining us to get her assessment of what is happening, geraldine sundstrom, pimco european portfolio manager. The ecb is pumping money into the system. Btps are benefiting. We are seeing peripheral stocks benefiting, and this is backed up by a huge rally over the last few days in european stocks as a result of more positive vaccine news. The combination of all this together, does it encourage you to think europe is a good place to put money to work . Geraldine the way i look at it is when we look at 2021, there are some good things to look forward to. With the vaccine, with support from the central bank, and more spending ahead of us. There is one commonality for this recovery and the cyclicality. More countries have written it on the wall. It is green and digital. You have to look at those companies which will be the enablers of this recovery. We can find a few in europe, but i would think a lot of these enablers are to be found in asia and the United States. Taking a bit of a broad view, it is not necessarily where the money is going to be spent. It is which companies are going to accrue the benefits. Guy alix typically if youre talking about esg or green investing, that is a full on europe play in terms of the amount of money they would give to companies and of element in infrastructure. You do not see it as that . Geraldine not entirely. A lot of this green revolution comes from Renewable Energy and electric vehicles and the system around it. A lot of these things are dominated by Asian Companies when it comes to solar panels or even battery. Where a lot of the value added is going to be made is not on the European Companies. If i generalize, there are exceptions to everything i can say. Guy in the short term, do you think that europe will be a covid . Iary of the end of i appreciate i am talking about the next few weeks but the next six months. As the vaccine starts to kick in. Europe looks like it has a lot of be up companies and economies. The spanish market in particular, i think the last 10 days it is up 20 in terms of the equity market. How do you play europe . Geraldine you have to make a differentiated. A differentiation. There were some sectors impaired by the lockdown and there is some normalization of Certain Companies and valuations. We cannot forget we are in an era of disruption and there are forces at play that were there before the pandemic that got accelerated by the pandemic and are likely to continue going forward. There is a normalization that needs to occur, but ultimately Secular Forces are still around. Because the recovery will be mostly green and digital, i would say government, even active participants in this disruption. I think you need to heed this on the compass and horizon and keep those secular themes on. I would think things that were disrupted before the pandemic are unlikely to see a miraculous recovery. They are likely to remain disruptive. They can be an adjustment in valuation to take into account some of the recovery. The capability and the endurance of producing profitability is what ultimately would make the difference in companies performance. If we look at the post covid and Cyclical Companies and cheaper valuation, i would think japan is better cyclically and sector oriented than many of the european markets. Alix what is interesting when you talk about post covid is you have Central Banks and fiscal policy, which is what we were talking about earlier with paul gordon. In that respect europe and the u. K. Seems to be ahead everywhere else. You will have fiscal stimulus working together with the ecb as a big backstop, in a way when you have firepower losing steam in japan. In the u. S. You do not have that coming through. Geraldine that is very true. I call it follow the money. Where the profit will accrue is not necessarily where the gdp growth is being created. Growth, butsee gdp the enablers of this recovery and where most of the value added is likely to accrue is not necessarily with European Companies. What advice would you give to european governments who are preparing to embark on massive means spending programs. How do they make sure that money does not leak out of europe . Think thereldine i are certain things being done. The large merkel has battery makers come build factories in europe to help the german auto industry. There are hopes that certain European Companies are getting on the bandwagon, but they have taken a lot of lag in terms of battery come in terms of semiconductor technology, and for renewables, the vast majority, close to 70 or 80 of solar panels are dominated by china. When it comes to the choice, what is going to happen is of course european workers will have to install the solar panel or Renewable Energy in europe, often or nots more made outside of your, and when it is made in europe, it is very often by Companies Whose headquarters are not in your. Alix an interesting counterintuitive view. Geraldine sundstrom of pimco, youll be sticking with us. We will have more on how to trade the rising virus cases. Alibaba single day, their sales billion yuan, double what they did in 2019. 2019 was 38 billion. Estimating between 70 billion and 80 billion in a single day. Unreal. This is bloomberg. Kailey lets check ritika lets check in on the bloomberg first word news. Do not expect any phone calls from Vladimir Putin to joe biden. A senior russian diplomat says the country has no plans to contact the president elect he says moscow was put off by an experience in 2016 when the Russian Ambassador to the u. S. Was criticized for reaching out to the Incoming Trump administration. Florida is bracing for a second hit from eta. The storm is now hurricane with top winds of 75 miles our the storms been in the gulf of mexico since crossing over south florida on sunday. Forecasters say the western part of the state could see up to four inches of rain as well as flash flooding. The brunt virus is roaring back into u. S. Cities the coronavirus is roaring back into u. S. Cities after a couple of months of the disease being a rural problem. Metropolitan areas are now averaging a daily Record Number of cases. That is meant rising cases in and around denver, detroit, and chicago. The virus is also mounting a comeback around boston and newark, new jersey. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Am ritika gupta this is bloomberg. Alix for more on the virus, optimism around the vaccine, joining us is Bloomberg Intelligence director of research. That was the story for 48 hours, and today the story is the u. S. Virus cap rising, you have icu beds filling up in paris. Where are we . Where is the vaccine . Where is the treatment . To say i am not surprised by the way they cases are shaping up. We did write something a couple of weeks ago with the fact we expected it to be a delayed response in terms of hospitalizations, and unfortunately this is exactly what happened. You are not going to be able to control this until people take the right measures, which , weyone has said repeatedly should be masking, social distancing, and trying to remove any opportunities for the virus to spread in places like gyms and restaurants. Guy we will leave it there. Thank you for the update. I want to bring back in our guest, geraldine sundstrom, pimco europe portfolio manager. Lets talk about this week and the journey we have been on. We came in with a big bang in the beginning of the week when we had the pfizer news on the efficacy of its vaccine which got a lot of people very excited. I feel there is a bias built in for a lot of people that they want this to be over. We now find ourselves in a situation where we need to refocus back on what is happening with the vaccine . Do you think we need to trade out some of the optimism we felt over the last few days . Do you think we need to reverse this tactical move towards value , or do you think markets should look through what is going to happen over the winter and love towards that vaccine . How do you play this . Had the pfizer news and we are awaiting the results of further companies with vaccines, some probably before year end. It would help to have more than one vaccine. If the market continues to get positive news on other vaccines with good efficacy, i think the market might be able to look moment, precisely because what Christine Lagarde did today is we are seeing more fiscal stimulus that is supported by central bank purchased. There are more announcements out of japan, and hopefully even in if ssion i think things if things were to get worse, it would probably be small. If we feel the light is at the end of the tunnel and for this year, meanwhile from governments and Central Banks, i would think the market would look through and there is no need for a big pullback from what we have seen. We have seen certain adjustments, certain rotation. Once markets can refocus on what the future brings, what to look for on the horizon, and which companies are the winner of this recovery. I think at the moment there is a bit of a big boom after the vaccine. There were a lot of Distressed Companies that got a breath of fresh air and oxygen. Now i think youre going to be back to fundamentals and looking at how things pan out for 2021. Alix if you take a look at yields in general, whether we btp orking at bunds or yields in the u. S. Training round 1 , have we seen the top . Yields in the u. S. Trading around 1 . Have we seen the top . Yields go i think if too high the fed will come back. They have a mandate, and certainly we are not out of the woods. I think the market is going to rely and hope the support of central bank is around. , for thosene can do of moremore worried inflation going into 2021 is to move out of the saved ration into inflation protected securities like the u. S. Treasury. We think the breakevens on the , the total is not very high, and it makes sense to move over a part of the nominal portfolios. O longer guy is that the most effective inflation hedge . Do you think commodities could work well. Im curious as to the options investors have. Geraldine there are other ones. Real yields will stay depressed precisely because Central Banks want to help this recovery. The debt burden on corporate Balance Sheet and government is very large and they want to average this inflation target they have consistently failed du. Real yields will remain negative for the foreseeable future. We do not think therell be a huge inflation surprised which has enabled them to remain in their goals which have been depressed of late and less stimulus coming out of the gridlock. Gold still probably has good days ahead. Alix at what point do we get the counterintuitive play, which is we are going to not get the huge amount of supply we were expecting from certain governments like the u. S. And you will have overseas buyers because we do see a rise in yields on the steeper curve . When does that start to play out or is that not going to happen . Geraldine we think there will still be need for quality income. Population aging and pensions needing fixed income assets. Not too much fear of people coming to buy that. If there is not enough demand, the Central Banks at least for certain amount of time will be taking on the difference. Rates will remain lower for longer. This has been our motto for a while there is no reason to think this will change, even though we have one vaccine and hopefully many more and in 2020 there are good things to look forward to. Alix thanks a lot. We appreciate it. Geraldine sundstrom of pimco. Thank you very much. This is bloomberg. Ritika time for the Bloomberg Business flash. A look at some of the biggest business stories. Jp morgan is no longer the world most systemically important accurate the Financial Stability board reduced jp morgan alongside citigroup and hsbc. It recommended a lower capital burden for the bank and several of its rivals. Deutsche bank says working remotely is a privilege you should have to pay for. Strategist are proposing a 5 tax for those who work from home on a regular basis. Not because of the government lockdown. Deutsche bank says that could raise 48 billion a year in the u. S. And could help support low income and essential workers. That is your Bloomberg Business flash. Alix thanks so much. This is a story everyone was trending around a couple of hours ago. The idea is if you work from home you do not have to pay for lunch or travel so your saving money. If your employer does not give you a desk, they have to pay for it, if they do then you have to pay for it and in essence a really interesting conversation about how inequality will play out after the pandemic. Guy i think that is the point of this. I do not think this will go anywhere, but i think it speaks to a wider problem, and that is how to has to figure out balance the scales a little bit when it comes to those that have not been affected by the pandemic, that have not suffered, that have not seen their income affected because they can simply work at home cured they are able to carry on. They can simply work at home. They can simply carry on. It is interesting what will happen with thanksgiving and christmas. There will be a real divide in terms of people who have not had their incomes affected just going out and spending money. Governments will have to figure that one out. We are going to take a brief break. As you can see, we are marking veterans day around the world. We saw a brief ceremony in london. As you can see, the president of the United States at Arlington Cemetery in washington. This is bloomberg. [drumming] alix you are watching President Trump at Arlington National cemetery in virginia participating in a wreathlaying ceremony on this veterans day. President elect joe biden is also honoring veterans day, stopping at the Vietnam Veterans memorial in pennsylvania as well. Guy europe wrapping up its day. We have seen ceremonies across europe to commemorate armistice day. Certainly in london a reduced ceremony at the not without its controversy. Iss talk about what happening in markets. We are near session peaks. These are the numbers we are looking at. The ftse 100 outperforming, up 1. 6 . The dax in germany a significant outperform her throughout this crisis, certainly of late. The dax up. 5 . Madrid up 1. 1 . Madrid over the last 10 days has done 20 , but it is an economy battered by coronavirus and any sign of a vaccine will certainly with itse in spain Tourism Industry flat on its back. Lets talk about what has happened more broadly. Some of the other Asset Classes weve been focusing on. A giveback in eurodollar. 1. 1764. Christine lagarde indicating she will continue to use the programs alongside her colleagues in the ecb, particularly the pepp program continuing to drive yields lower. Brent crude up 1. 7 . One of the big performers today in terms of what we have seen in equity markets and in terms of the currency has been turkish lira, up 4 right now. Indicating hegan does support the incoming governor of the central bank after the previous one was fired. Maybe a green light to Interest Rate rises. Remember president erdogan hasnt on conventional has an unconventional approach to his believe that Interest Rates cause high inflation and that is something the market has been nervous about. The turkish lira has responded to the more conventional approach to monetary policy. Upgrades for iag. Its stock has been outperforming. A series for the airline conglomerate, the stop up today. The numbers on one level were quite good, but it is the forwardlooking indicators for this bank that bleeds the market today. That stop giving back 5. 74 . Suv. S out with an electric definitely bell making competition for the likes of tesla. The market keeping the eye on the fact the germans are finally starting to get into gear. Maybe get into gear is the wrong choice of words for electric vehicles. Bmw up 1. 42 today. Factor9 has been a big for many European Companies and has cost the Global Economy 12 trillion according to one of the worlds leading providers of insurance. According to the companys ceo, there is another rest we can there is another risk that can be just as disruptive as the coronavirus pandemic. Earlier to get the take on the wrist. Cyber risks are very significant and you could see the equivalent of a pandemic hit virusole world through a or breakdowns of clouds. These extreme events that could be extremely disruptive for the business side. Imagine all of the Small Businesses less protected from one date to the other losing all of their data, how catastrophic would that be . Imagine an attack on Critical Infrastructure or things like that. Itis quite mindboggling and is also clear in my view that some of the big powers of this world could do these things. The reason they do not do it is they are not at war with each other, which reminds me the Nuclear Situation when i was young. The frightening piece is the ability is there, that is what secret services across the main free countries who are in that game a knowledge. You never know how this knowledge could trickle down and other people could use some of that. Cyber is something people talk about it, but they compare it to past losses, which are specific to some companies. It could become much bigger. There is another tail risk which could affect Many Companies at the same time. Levelou say maybe a state is mutually assured destruction, but it is the nonstate actors where that risk emanates from. Is this an insurable risk . Borderline. , there is norisk way we will exclude that. That is possible, but we cannot issue a whole Economic Loss we cannot ensure a whole Economic Loss. Im not sure Capital Markets will jump in and want to take massive amounts of cyber risk. You can take some, but it will never be enough for the actual economic damage. We will have a similar situation to the pandemic where it will be worthwhile to think about solutions. Power states going to react in such a situation . Guy a bit of my conversation ceo. Er with the swiss re we talked about the idea that we are may be ourselves increasingly in a world where these large risks are uninsurable, and that bucket is growing, which is something maybe the Financial Community has not necessarily latched onto garrett alix in the u. S. Has latched onto. Alix in the u. S. For terrorism insurance, when you hit a certain threshold, the government puts in money. I wonder if you have to do that for all of the disaster events you cannot quantify. Lets break it down with charles graham, bloomberg Senior Analyst who covers the Insurance Industry. We have things like climate change, cyber security. What is the solution . The solutionink the industry has been talking about, particularly in the context of the pandemic we face, is building a much closer relationship between insurers and governments. We have talked about the cost of the pandemic in terms of its economic cost. That is beyond the capacity of an Insurance Industry to provide any kind of protection. As a result of that, the majority of Business Interruption policies have excluded the pandemic for a number of years. As we face these challenges, whether it is the pandemic or climate combination of Government Insurance and market resources. If we face and think about climate change, the biggest threat is flood risk. The majority of countries, if flood cover is not included within the household policies. It is a supplemental that in many cases it is so expensive nobody buys it. When floods happen, individuals and Companies End up carrying all of the cost. We have a huge protection gap and need to think more cleverly about how we begin to close that. Do younk the guy think the industry is communicating this properly . One of the problems the industry had through covid is the language on what was covered and not covered. Business interruption was meant to be a small localized event affecting a company and that would be covered. Not these kinds of events. Do you think the industry is doing enough to communicate properly . This is something christian was talking about earlier, and you think those seeking cover understand what theyve got . Charles i think there are two things. First of all we are seeing from the case in the u. K. That some of these policies wordings were extremely badly worded. That clearly has met the industry has not covered itself in glory. I think there has also been a that the industry has a habit of pricing policies according to what it thinks markets will take in trying to exclude the risk in error down the rest. That inevitably leads to conversation the inevitably leads to confrontation and legal fights, which is not a good way to protect the industry reputation. Alix does this go to the courts . Will we see a lot of classaction suits where Insurance Companies will be forced to pay this kind of insurance . Charles we have seen some of those, but the number of policies involved is not huge. In most cases, things were reasonably clear. What we have seen as policies are tighteningrs and you are seeing more exclusions, both from insurers and their reinsurers and from a policyholder point of view, that might not be what you want to see. There is going to be the need to look for a better solution, whether that is to the pandemic or whether that is defined raise. Whether that is fund raise cybercyber risk guy risk could have a huge impact where you to see entire infrastructure getting taken down and the impact that would have on society. Charles graham of bluebird intelligence giving us of Bloomberg Intelligence giving us his thoughts. A little bit of a dip during the auction process, but nevertheless another positive session. We see many of these pushing european equities even higher. We carry on the coverage of the top of the hour. Jonathan ferro and i taking you through the hour on Bloomberg Radio on dab Digital Radio with the cable show. Hope you will join us if you are in london. This is bloomberg. Livea i am ritika gupta in the principal room. Coming up, and exclusive interview with ruth richards. That is 1 00 in new york, 6 with bruce richards. That is 1 00 in new york, 6 00 in london. Guy live from london, i am guy johnson. This is the european close on bloomberg markets. Traffic in Londons Heathrow airport fell in october. It was down 82 yearoveryear. Earlier today i asked the heathrow ceo what he is expecting for november and the months ahead. November will be worse because we have the lockdown and a ban on people traveling. November, i hope will be the low point. Lets see what the impact will be of testing and the vaccine coming in. Guy you talk about both of those things. Lets talk about how they win it how they may Work Together or against each other. Over theso much talk Pfizer Vaccine and other vaccines may reduce the emphasis the need to be placed on testing . I think we need both. Testing is the only game in town to get people back to normal in the near future because even with the u. K. Getting early access to a vaccine, it will take a year and a half to vaccinate the entire country. This is a global issue, not just a u. K. Based issue, and it will take much longer before the vaccine can have a massive impact around the world. Testing has to be our focus, and there are two things we need the u. K. Government to do. The first is to move quickly to put in place a testing regime, which allows you to test and release. If you going to selfisolation and have a clear test, you can then get out of isolation quickly. That is something we need in place for early december. We need to move to the next stage, which is to have predeparture testing where you know before you get on a plane you will not be quarantined when you get to the other end and you also know all of the other people on that plane are free of covid. That is what will need over the next year or two to give people confidence to get back to traveling as normal and to help save millions of jobs in the u. K. Economy alone. Guy lets talk about the north atlantic. If i read the figures, october down 95 . That is a brutal number. Where do your negotiation stand on opening transatlantic corridors . What is government doing . What noises are you hearing from america . How realistic will it be to reopen routes between london and new york . Is a hugelyit important market for the u. K. The only major economy where the u. K. Has a surplus is the United States. It is vital for our economy to get that reestablished and at the moment there is almost no traffic whatsoever. At a basic level, the vaccines and the test we will be relying on to get our economy back up and running come from the United States. Unless we have the planes to get them here in safe, temperature controlled conditions, we will not be able to get to the healing process. It is vital we make this happen. There have been conversations between the u. K. And the u. S. Government before the election, which is making good progress. There has been a bit of a pause recently. We have been working with the Transatlantic Airlines to support our government and come up with a plan for how we can restart transatlantic aviation. Ofthink having a pilot departure testing between london and new york, which is the busiest route in the world, would be the right way to start. That is where our focus is. I had hoped we would be able to get that up and running before thanksgiving. I do not think we have the time to do that. Definitely by christmas we should have the predeparture up and running so we can start to get back to normality between the u. K. And the u. S. Guy before christmas. That is interesting. Heathrow airport ceo speaking to me earlier on today. Alix earlier today American Airlines said they are resuming their dallasfort worth to shanghai flights twice a week. Opening up there as well. Talking more about freight and relationships, brexit talks look set to miss another deadline and continue into next week. The uncertainty over trade deals did pose a number of challenges for businesses. In particular is customs. Anna jerzewska. Thank you for joining us. I have read a lot of stories about how the customs world is not ready for any kind of brexit and to handle the amount of checks and volume that will have to come down. Can you give me some insight into that . Anna absolutely. Thank you for having me. The best place to start is to customs, itot just is borders in general. The border is a place where a number of processes have overlapped. We have a movement of goods checksborders but also that ensure animal and plant products entering the u. K. Are healthy and safe for consumers. Prevention, immigration, number of factors, and all of this has to Work Together. Everyone needs to be ready come Everyone Needs to know exactly what they need to do and Everything Else needs to be put in place and ready for that deadline. In terms of customs, there are a lot of issues when it comes to customs and in terms of readiness, trade being ready, and also people will submit the declarations on behalf of clients, on behalf of traders, individual companies. When i talk to companies, they tell me they are as ready as they can be because they do not know what the situation will look like. They also tell me they are struggling to find customs agents. Can you give me a sense of how significant this shortage is . Is a ready as they can be good way to put it. A number of companies have said they are as ready as they can be because they are still waiting for important pieces of guidance , important pieces of information from the government. We do not have everything we need. Isterms of customs, that something that has been ongoing for the last couple of years. Had at, we have never sufficient amount of customs in the u. K. Companies are struggling to find a great majority of companies do not submit Customs Declarations themselves. They get someone else to help them do that and that is the customs broker who submits. If you do not have the customs broker and customs provider and youre doing this for the first time and you do not know where to start, that is a problem. Theres a shortage of customs brokers and welltrained customs brokers. Does thisix how much wind up costing companies and what does the government do in the meantime . Anna there are various different types of costs. The upper cost per declaration, so a customs broker would normally charge the prices have gone obscene scene of gilly over the last year i think at the moment it is around 50 pounds for an import declaration and 20 to 30 for an export declaration. If you multiply the number of shipments by this number, that ends up being your cost. Then you have a hidden cost, the number of internal cost such as hiring people, getting the right thesis. Quite a significant amount. The government has the right for businesses to prepare for brexit. There is question of how these grants were administered because they are available for companies and not individuals. If someone is interested in a career in customs they can access grants, train themselves, and then get hired by a company. For a company, these grants are helpful. They cover systems. They are helpful, but the scale of the problem is much bigger than the demand for grants available. Guy i am also hearing some of the government money is driving up the wages of customs agents that are already trained. We are seeing huge Price Inflation within this space. If that is what is happening, are we seeing more people being pulled in or just ending up with those that already have the skills being paid significantly more and not resolving the problem . Anna there are two things. One is that a lot of these grounds have gone to companies, and as a result they have gone to people that are already custom specialist. The company will not hire someone for work they have for six months. The grants have been available for a couple of months. The people that went for the training are already working with companies as customs professionals. It is upscaling rather than trading new people. Upscaling rather than trading new people. That is the case. In terms of wages growing up, that is just a question of demand. There is so much demand for customs, especially. Involving the private sector as well as the public sector. Everywhere you look you have customs agencies, customs brokerage companies, but you also have individual companies, multinational companies. Everyone is looking for customs professionals which will obviously make the salary slightly different than they used to be a year ago. Really appreciate your input and what is an important area of the brexit conversation some people are not talking about. Interesting to see how governments ultimately deal with it. , founder of trade and borders. Alix in the u. S. We are still seeing the rotation into tech. The question is what happens tomorrow when the bond market reopens . They are closed because of veterans day. We have a yield of 95 basis points on the 10 year. Does that wind up moving the stock market and we see more rotation into value and procyclical stocks we have seen over the last two days . We are seeing virus increases in the u. S. You have to wonder if we are just weeks behind you you have to wonder if we will see regional lockdowns. We are very close to having to close Public Schools in new york city. Guy i know you are very worried about that and einar stand why. I do not think anybody and i understand why. I do not think anybody wants to go back to homeschooling. The Economic Impact would be significant. He ftse 100 outperforming what i will say is again we see strong volume for European Equity markets today. The ibex up 78 . The ftse 100 plus 90 . Money is continuing to move around in these european markets as we see this rebalancing. It was interesting to see the huge strength we have seen in the turkish lira on the back of the erdogan comments earlier. Alix that wraps it up for me and guy. [ sigh ] not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkinbath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkinbath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkinbath provides independence with peace of mind. From bloomberg eadquarters, im david westin, welcome to balance of power where the world of politics meets business. Terribly dramatic day but tech is coming back. Onds arent trading at all, abigail, because of veterans day. Abigail thank you to all who have served. Very much appreciate your service to our country. Relative to the markets, its fairly quiet. What makes this unusual, david, we are not looking at small moves. Standard poors up about. 8 . The nasdaq up closer to 2 . We do have, though, a little bit of a reversal of the rotation weve seen this week. Of course, the rotation i am talking about that you and i talked about yesterday and the before, into value, into small cap today. Folks going toward the big tech names. What stands out again, david, it feels relatively quiet. We dont have crazy headlines were dealing with. It teams as though investors are enjoying this pause for the markets and the bulls overall