Plan to shake up the fed before he leaves office. Theres a lot going on in the markets. Of course we have to focus on u. S. Politics, Central Banks here. We seem to be inching closer to a deal with u. K. And the eu. That is filtering through an optimism in terms of pound, and the other thing i am watching is bitcoin. Bitcoin is something i do not watch very often. It is something we need to watch out for. It has always been there, but a huge rise above 17,000, and a parabolic ascent, surging past 18,000 for the First Time Since december 2017. The mania and cryptocurrency everyone has said has reached a fever pitch, including fidelity investments. European stocks overall unchanged, slipping just moments ago again on these new virus cases as they continue to mount, and that is worrying investors across the world. To the bloomberg first word news in london with leighann gerrans. Ighann. Leighann with two senators and quarantine, the republicans fell short of the votes needed. Republicans can reconsider her nomination, but time is running out. President trump has found a security chief after he contradicted President Trump security chief after he contradicted election fraud. It isn the u. K. , announcing a 12 billion pound plan for green indices and to trac tackle Climate Change. Prime minister Boris Johnson says it will create new jobs. Sales and production of diesel cars will be cut down. Three former lawmakers in hong kong have been arrested over a scuffle in the Legislative Council chamber earlier this year. They have been detained for allegedly trying to disrupt a vote any criticism on the Chinese National anthem. Global news 24 hours a day, onair and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am leighann gerrans. This is bloomberg. Francine . Francine leighann, thank you so much. Now, the news of a vaccine does not really change the ecbs plans to adopt monetary stimulus according to president christine lagarde, speaking at the u. S. Economy forum. Lagarde says that point is to stop the slump from getting worse and that they should be available in 2021. Ms. Lagarde i am not sure it is going to be a major game changer for the forecast, simply because what we had anticipated in our baseline was that at some stage in the first half of 2021, they would be there would be a vaccine, and it would be rolled so in the course of 2021, it might be a little exhilarated given the news that we are receiving from germany, u. S. , but i do not think there is going to be a game changer, so to speak. I think that our forecast is being revisited almost as we speak, and we will be releasing on the 10th of december, so i do not want to anticipate what the outcome will be. , you know, we have seen before we had this great news about vaccines, we had some pretty negative news concerning the second wave that really came about, certainly earlier than anything we had anticipated, and together with that second wave, we had also that list of containment measures and lockdown measures that have country aftera another in the euro area. We had the development that affected negatively the situation, and that also has an impact on the outlook. Francine so what kind of economy do you see for europe in the world . Because of the extra restrictions, is it a double dip, is it something that is so uncertain at the moment, because usually if we get a vaccine, we do not exactly know what shape it will take or how consumers will behave. Ms. Lagarde you know, i do not want to downplay the very good i thinkthe vaccine, but we need to be aware of not just the short term and the news impact, we have to be mindful of the overall situation, and in that vein, i think the second wave that we saw presents risk. The first risk that i would think of is the fact that consumers, investors, employers do not regard the pandemic as a shapef, you know, this v that we always point to, but as something that will recur over the course of time, and as a result would lead them to completely change their behavior. How bad is it if saving again, how about if they freeze and hold their investment plans because of the uncertainty generated by this situation . And the second risk that i see is the potential real financial spillover, which we have managed to avoid so far. In other words, we have not had the Financial Sector amplifying weighed one that has the real economy, and we really need to stay clear of that, because that would be an aggravating factor. Francine what surprised you most in the economy, worldwide but also given the pandemic . Is it positivity . Is that how quickly people actually started working again, when some of these lockdowns were lifted . Ms. Lagarde you know, what surprised me most from this part of the world, where i have relocated, is, you know, how, in the face of this massive, shock exhaustion is shock, how these players upped their game, putting together a very large package in the first half of march, and we were soon followed by the european commission, the decision to remove the state aid restrictions, the decision then to put on the table a massive package that was agreed in july, that surprised me. Francine well, that was the ecb president , christine lagarde, speaking to us yesterday. Lets get more on Monetary Policy come on the economy, on covid19. With our next guest, one of the most respected in banking today, Patrick Odier, chairman and senior managing partner at bank lobato the. We have Bank Lombard Odier. We have not spoken in a while. How has it all been going . Are markets too optimistic that we are over the worst of the pandemic . Patrick francine, i think there be tooed not to exuberant. I think in general, investors and clients have been very disciplined. They have been avoiding panicking and listening to advisors, such as ourselves and others. And i think this has been good as the markets did recover, as you know. I think what is happening now is a number of uncertainties over are sort of months fading out, and that we have to adjust the scenario for the next 12 to 18 months, of critical importance. In our case, we are looking at basically that the sharp recovery is going to play out, and that we are probably going of activitiesevel in the u. S. , here, i mean, and probably early 2022 in europe, but the big question would be thereafter, so we have to adjust portfolios. Francine what are clients actually asking of you now . Are they ready to do more deals . Do they want to be more invested . What are some concerns Going Forward . Patrick first of all, they want to make sure that they recovery that they benefited from by staying invested, as we and many have advised during the crisis, a vshape scenario, i think they want to make sure that, one, they can benefit from this positioning, and second, that they can adjust from the neck cycle. So i think there is a little bit next cycle. So i think there is a little bit rotation with regards to the fixed income allocation, and perhaps also the protection in portfolios. They are asking indeed for protection, and traditionally commit has been asset allocations. Course,lso been. Of using some of the markets, protect a little bit more of the portfolio allocation, so they ask for a balance rather than invested risk, and some of rotation ofctive locatio the positions, remaining investments of course in the current cycle. Patrick, how much more of this rotation do you think we have left . How far can it go . Patrick well, you know, there is a strong interest for what we perceive today, in particular with regard to the Way Industries have to adjust to the current economic model and probably be able to discuss that later, but i think the rotation grows in line with also the spiraling change, looking for opportunities of companies transitioning from one economic model to another, i am thinking carbon, but also other aspects that have made investments, they are trying to make use of those changes come of course offering a lot of opportunities, and making the trend much longer than we would perceive in other traditional circumstances. Francine patrick, thank you. So much. We will actually come back and speak about sustainability and rotation toward a much greener investment. Odier with Bank Lombard Odier a stays with us. This is bloomberg. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. I am Francine Lacqua here in london. Now, a lot going on in the Climate Change space. Going green, u. K. Perimeter Boris Johnson had announced a 12 billion pound plan to boost green energy and tackle Climate Change. He says the 10 point plan will ban gas and diesel cars in 2030 and create or support as many as 250,000 jobs. This week, another company has also launches National Capital strategy, targeting Investment Opportunities and sustainable resources, focusing on bioenergy and regenerative farming. Lets get back to Patrick Odier from Bank Lombard Odier. Patrick, you talked a little bit about sustainability and the appetite from investors to just go green. How much are you expecting that trend to continue in the next 18 months . Patrick actually, to put it in perspective, francine, five years ago, we had barely 3 to 5 of our requested proposal that contained any serious questions related to our taking into consideration sustainability factors. Today, it is barely 1 of total requests, not asking any questions, so it is a trend that i would say the covid crisis has also accelerated the perception on how important it is to understand what is really happening in the world, what is happening in our model, and what has as an insurance on the Business Models to have on the portfolio. So of course it is about client position come of course it is about health, nature, but it is also about social issues. Started 25 years ago, so we are wellpositioned, and that is why we announced i think the first of its time new Investment Strategy in major capital, which is basically providing investors with opportunities to both harness and preserve nature at the same time. Nature being at the origin of more than half of what is produced in the world today. Francine but what will be the biggest change for Financial Markets . Will it be mandatory disclosures of, you know, green admissions . Is that going to happen . Is a taxonomy or putting a price on carbon . Patrick welcome actually come if there is a price on carbon, i think many of us would be happy, because, as with nature, carbon is one of these aspects that has a value, actually we think it would be negative, as nature has a positive value but has no price. And it is absolutely not tolerable enough anymore to think that we, with the collective intelligence we have in the markets, and with the politicians and regulators, that we could not come to an agreement about that. That is one aspect. We need more toward pricing, externalities, positive or negative, into the production processes. Second aspect, which of course is now changing, is that companies have noted that capital is going to have an influence on their future wellbeing, i. E. Customer capital will be sparked by the Way Companies do integrate those factors into their strategy. So we are, like many others, are actually looking at this now very seriously to make sure the portfolios that we do recommend to our clients are completely compliant with this approach and actually there should be no other way to invest in compliance and sustainabilitydriven strategies. Francine patrick, where does a lot of this appetite come from . Is it millennials, or is it acrosstheboard it was of your clients think like this . Patrick i think the appetite come from a sense of responsibility from some of the Financial Sector actors, that responsibility has to do with making sure they analyze and conclude with the information i mean, they are massive, and the degree of damages created by todays economic model can be turned into fantastic opportunities, these of these areds visavis trends important for the next cycle that is basically where it comes first. The second come of course, coming from a certain demand that is also, perhaps, leads to the nature of the clientele, the investor, the institutional environment, regulation coming into the disclosure requirements, of course the taxonomy and the metrics that have to be fed on the objective. But they have come up with one of these recommended seven measures that are possible, the temperature allotment measures. This is a way to tell investors, look, you contribute through your investments this without elevation of global temperature. Secondly, this does not or does fit the paris agreement. So all of those metrics and instruments make demand little by little, be more concerned about it. Aspect. The risk as i said first, i think most of the interest comes from Investment Opportunities, both from the traditional sectors that are now moving from what we would call the dirty kind of Business Model to the clean side of Business Model, and finding new opportunities, technology driven. We aree patrick, talking everyday about bitcoin, and certainly for the last two days, it has gone past 18,000, the highest since 2017. What is your take on bitcoin, how are people using it, and it is it something that companies such as yours will get involved with . Patrick if we think there is a huge change of sustainability, i would say there is enough to be interested in that exchange, and understanding exactly how we can take advantage of it, making sure we avoid all the pitfalls and the risks, as i said. There is enough to do in order to perhaps avoid speculative cycles, would be my take on the bitcoin, that it is probably going to be for more speculative investors. Value preservation or Asset Preservation value for me. Aspectsquantity type of that go down when supply goes up. I think in this respect, it does not belong to what we call a very safe and balanced Investment Strategy today. It is more risky that would apply to those kinds of assets. This is to say, francine, bitcoin perhaps may not belong to those strategies, but it does mean that, of course, cryptocurrencies will not exist, but that is a totally different factor. Francine we will have to get you back on to talk about that extensively. Thank you so much, Patrick Odier, senior managing partner odier. Aombard coming up, we will have the chair of hsbc and unilever. We will talk about banking. This is bloomberg. This is bloomberg. In my opinion, dont own bonds, and dont own cash, because they are producing a lot of debt and producing a lot of isey to fund it, answer that changing the nature of capital flows. It is also changing how those flows go to china, in terms of the comparison of that, but particularly as it opens to stocks, so i think it is behaving so sensibly, but dont hold those of the limitations of what is expensive. Francine that was ray dalio, founder and cochairman of bridgewater associates, speaking to bloomberg at the new economy forum. We will have more on the new economy forum. The markets actually kind of moving sideways. A lot of the focus not only on the numbers of cases rising and possible stimulus. Coming up, we talk about the s p. This is bloomberg. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Francine welcome to bloomberg etf iq europe. Over the next 30 minutes, i will be your guide to the market in Exchange Traded funds. Everything you need to know about the funds and the flows. Francine shot in the arm. Stuck etfs listed in europe have already had their best month of inflows since january on hopes of the post covid return to normality. Ethical investing for universities under we speak to asset manager amundi. It is the Biggest Company to be added to the s p 500, causing for billy 400 billion headaches. We will bring you the story. Off, lets discuss some of the weeks flows, buoyed