Milestone, u. S. Deaths topped a new milestone as new york city closes schools again. Germanys finance minister tells bloomberg taming the virus is critical. E. U. Leaders will attend make a veto that threatens from hungary and poland. France says nations could be cut out of the rescue plan all together. Chinasy pledge, president xi jinping says the nation wont engage in decoupling, saying its policy of opening up wont waver. It comes after the u. S. And the u. K. Called for beijing to honor its commitments on hong kong, citing serious concern. Its just gone 6 00 a. M. In london, 7 00 a. M. In germany. Bad news coming, 11,000 jobs to be cut from the business. Of justlow the estimate over 30 billion. No room for a dividend this year. The banks dividend has been restrained. You think about it, this is a disastrous year for steel. The future is unclear. We are grappling with rolling lockdowns and interruptions around the world. Recovering, but the reality of europe and the United States is found. Good morning, annemarie. Annmarie good morning morning. Yes, it is quite a found privet a grim, said milestone, 250,000 deaths, surpassing that level. I spent most of the pandemic in new york city, and as of today, new york city Public Schools, the biggest Public School system in the entire United States is closed. Alert. Aised a high statistics are coming out around the world and that seems to be overwhelming markets, not the vaccine news. Manus absolutely. As you put it, tokyo is on the next highest alert level. What about the equity market . Discombobulated, my favorite word of the week. How do they look . Annmarie we did see a stark downward trend yesterday when we found out about those new york city Public Schools, wall street closing lower. That is bleeding into asia with deeper losses in tokyo. Those have started to turn back. Equities to the downside across the board. European futures are looking negative, down. 7 . The dax on a precipice of newly erasing and wiping out all the losses for the year. It doesnt look like that will happen today. The yen is a haven. More virus restrictions are overshadowing progress toward a vaccine. Berlin became the latest epicenter protest in europe over policies to stem the pandemic with police using Water Cannons in an effort to break up the demonstrations. Germanys finance minister dismissed the criticism. We understand there is still big support in the population, if you look at polls you find 80 , Something Like that. This is not too bad. Yes, there are some opposing it, but this is how things are in a democracy. I think it is more or less that most of the people are supporting the governments strategy. In the United States, new york city has shut schools transits a crippled system as deaths in the u. S. Has now topped a quarter million, a very grim milestone to wake up to this thursday morning. Is our guest, thank you for joining us this morning. I want to get your sense, do you trade increasingly hopeful vaccine data that we heard yesterday, or do we deal with the devastating news on covid cases . I think we mightve lost our guest at the moment, so we can just have this conversation. Its a push off and pull between the market strengthening in the vaccine news as opposed to the devastating news and what you wake up to, tokyo raising the alert level, 200 50,000 people have died in the United States, and we are seeing more and more covid restrictions coming into play across the United States. Lets take a look at where retrade this thursday morning. Flat. 0 futures relatively wall street did close lower today. A lot of it has to do with the city,e saw in new york the s p 500 closing down more than 1 alongside the dow and the nasdaq. Nasdaq futures this morning a little bit to the downside as well. We will catch you up with some of our first word news this morning. Tensions are rising among Oil Producers this morning. United arab emirates floating a deal leaving opecplus. Of a genuine plan of action. There has been friction with neighboring saudi arabia since the summer in the uae increased output above its quota. The u. K. In canada are on the brink of signing a new trade deal to replace the existing agreement britain has through e. U. Membership. Last year trade between the two nations was worth about 17 billion pounds. Sources tell bloomberg an announcement is expected within days. And pimco is being sued by a pair of female workers who are accusing the money manager of having a fraternity culture. Company the marginalizes, demeans, and undervalues women and encourages gathering at strip clubs. The suit says the expectation is that women must choose between having children or excelling in their career. Pimco strongly denies the allegations. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I think we are back with our guest host this thursday morning, the head of Investment Strategy at rbc wealth management. Ask for hanging through the new 2020 virtual television. I want to begin with this question, the dichotomy market is facing. Had this euphoria on vaccine news. We hear better vaccine data every single day, but then we have these other grim headlines coming out. Passing a grimes milestone of 250,000 dead. If you are in this market, which narrative do you play . Theres a shortterm and a longterm narrative. In the shortterm, the virus continues to wreak havoc in the u. S. The numbers in europe are stabilizing in some countries at a high level. Some countries are making progress, but the virus is going to make this winter very difficult. If you think of the Third Quarter of the year, we expect to contraction in europe on the order of 2. 5 compared to the previous quarter. In the u. K. It could be a sharper, deeper contraction on the order of 3. 5 payment in the u. S. , with the virus continuing to advance, they will have more lockdown measures. We expect december and january could be weak months. It could still eke out some growth for the fourth quarter. But the market has had a remarkable advance. We had the catalyst of the u. S. Election and the catalyst of the vaccines, and we have different Economic Resources playing out at the moment. A its possible will have period of consolidation. If we look at 12 months, we can theine a world where been attained and we made progress on rolling out a vaccine. Theres been a lot of 2020 fiscal support and we do expect some modest gains going forward. Good morning to you, great to have you with us this morning. I was looking at extreme positioning, its a thing i touched on in the last hour. Absolutee from that myopic bearishness of may, extreme bearishness to extreme bullishness. You see that kind of extremity and markets, is the momentum are we at a breaking point with the bullish optimism, or is that just too skeptical of me . Frederique i think you have reason to be skeptical. Weve had a lot of reviews. We will hear a lot more how its about difficult to control in europe. We hear about the difficulties of rolling out a vaccine, is fantastic news that we had these vaccines, but distribution is going to be tricky and take time. Depending on how far the market has gone, some investors could start taking we would tell our clients to use this period to look at portfolios and make sure you have enough cyclicals in portfolios to carry you over to the next year. ,ectors such as industrials ,ith growth that is underpinned quality financial should be part of the portfolio and in many cases they havent over the last people focused on defenses. Manus well talk about that in a moment, our guest host this morning from rbc wealth management. E. U. Leaders gear up for what looks like a grueling battle to salvage billions of euros of pandemic relief. We will discuss. This is bloomberg. This crisis has shown us that Global Public health is the foundation of the worlds prosperity and security. Save act scenes must be available for all, whoever they are, wherever they are, whatever they can afford. No middle or low Income Countries should be left behind. A Global Recovery is the only way to reopen our economies, to restart the labor market, to repair supply chains, and start rebuilding. Capitalizing on existing market forces, not fighting them. We need to use our recovery stimulus to invest in the clean and Digital Technologies of the future. This is the thinking behind europes 1. 8 trillion euro cover package. You can count on europe to lead the way. Manus thats a president of the European Commission there with a very clear message. The European Union is facing what looks like a grueling battle to persuade hungary and poland to pull back threats endangering millions of euros of pandemic relief and budget funds. They say they will veto a key plank in the economic recovery package. They can be cut out of the rescue plan all, so fighting talk all the way around. Be ifngerous would it poland and hungary do expect realistically happen . Frederique we do expect that by the end of the year, they will have mediated, make some compromises so that the funds can be released as expected by the end of the first half of next year. Theres a lot at stake for hungary and poland. In the past, they have received a lot of fines from the e. U. They would be the beneficiaries of this package as well, so we telling in fact for them means shooting themselves in the foot. You have to remember that the , andt is headed by germany to leaverkel is keen this package as her legacy. The e. U. Has assured itself as being very aggressive, very decisive during the crisis, and this image of cohesion is now under threat because of these vetoes. So they want to come up with some kind of deal or agreement, perhaps linked to certain behaviors or precise behaviors so that the funds can be dispersed. If they are not dispersed, remember that countries that need funding still have access to financial markets, and as low,as interest is already that shouldnt be too much of a challenge for them. But the big big question is whether the image of cohesion comes under threat. Long euro positions have been building since we learned about the e. U. Recovery find. If there is in a deal or there is a deal but it circumvents hungary and poland, what kind of pressure does that put on the single currency . Markets will worry some it and we could see shortterm pressure. I think the importance of the in theonomies are really periphery, a lot more important to the e. U. Than these two countries which have been reluctant, shall we say partners within the e. U. Im sure there will be speculation as to whether that can extend further, but countries are seeing at the moment that they can benefit from being part of the e. U. Its not an attitude they had back in april, so its important to preserve this cohesion. Manus you mentioned you wanted to try to take a little more value on board, but were inching closer to trade deal. Will that add to that narrative . You say it looks cheap, and there is a reason why these things look cheap. Would a trade deal put a floor under that cheapness, and how does it compare to other markets . Frederique so the u. K. Has underperformed for the last four years. We are way below average valuation levels. Whether we have a deal or a new deal, the difference is very small. If we do have a deal are economists expect that over the economy is going to be smaller by the order of just under 7 . It will beno deal, smaller but will be about 9. 5 . The value of the deal is that its a base to build on that you can focus on in order to negotiate individual differences. Is going to be difficult for the u. K. For the next six months at least. Haveink the economy will largely gone through the most painful part of the adjustment. We do expect dividends to bounceback next year. A lot of companies as you pointed out when you started the passam, companies had to dividends this year. We expect to balance dividends in the u. K. Next year on the order of 20 . Thank you so much for joining us this morning, the head of Investment Strategy at rbc wealth management. Coming up next, south africas president says he is committed to reining in the countrys debt. Will hear from him next. This is bloomberg. Annmarie good morning, this is bloomberg daybreak europe. Alongside anis craney in dubai. South africas president has reiterated his commitment to reining in the countries skyrocketing debt. The president spoke to bloomberg in johannesburg. Take a listen. The investment had been going down in relation to our gdp. One of the reasons why i arrived at my tenure as president and the focus on attracting investment to try to correct this. We are in the process of doing so. We set ourselves a goal of attracting 100 billion into our economy in five years, and we are already more than halfway there. Commitments are being made by companies and many of these commitments are actually being actualized, so attracting investment is an effort to visavisnvestments our gdp, and i think we can turn things around quite significantly. But it also means that the itsic sector, throughout various entities, also needs to demonstrate its own confidence in the economy of our country, so the Public Sector investment had taper down, and we now want through thet and infrastructure play and through refocusing our state owned enterprises, we will be able to do so. And in tandem, we will also see the private sector getting to invest more. How confident are you that south africa can avoid a sovereign debt crisis . This is the risk that the finance minister highlighted. We have taken it upon ourselves to draw a line in the are, and decided that we going to arrest the debt levels, bring them down over the next four years, were going to see our debt being brought down. We are spending far much far too much money on debt servicing costs. Than we pays more for education, and that cannot be. We got to bring down our debt levels and make them much more manageable. We are embarking on a variety of being stopping waste, stopping corruption, and with all these measures that we are putting in place, im certain that we will be able to bring our debt levels down and avoid what you would call a debt crisis, because we are focused, and we have been open in telling the nation that we have too much debt, in a country that needs to grow, needs to reduce its debt. And through that we want to be able to generate it is through investment that we get growth, and as you get growth, to have moreable revenue and taxes. Manus that was the south african president. Lets stick with the african nation and its economy. Dani burgers with us. Looking at the outflows, they are mounting again. You take this morning on south africas debt position . Dani the fact that coronavirus has exacerbated the debt situation that south africa is facing since 2008 and 2009, their debt load has more than doubled forecasts are for it to continue to rise. When those coronavirus restrictions hit, the economy was already deep in a recession. Lockdown, tax collection became even harder. So thats how you get the rising debt picture. It forced the ruling african nation to reverse its position and to accept the loan from the imf. So this is the push in the pool. You have the rising debt and the lowering of investments. Hit one of the lowest in decades. South africas finance minister sees debt to peak at six years from now, despite talking about bringing it down over the next five years. The finance minister sees it reaching 95. 3 of gdp by the year of 2026. So he is forecasting a situation that continues to erupt. So south africa faces a situation they need to reform or face a sovereign debt crisis. Annmarie thanks so much for that. Coming up, we will speak to a chief executive officer from the abb. You dont want to miss that. 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. Annmarie good morning, 6 30 a. M. In london. This is bloomberg daybreak europe. Here are todays top stories. Grim milestone, u. S. Debt from the cabal coronavirus top a quarter million as new york city shuts schools once again. Fatalities in italy had a seven month time to germanys finance minister tells bloomberg containing the virus is critical. Tough decisions, e. U. Leaders will attempt to salvage billions in buyers relief fines in todays summit amid threats from hungary and poland. France says the nations could be cut out of the rescue plans all together. Fighting for survival. Good morning, manus. What is overshadowing the market, although we had positive vaccine news again yesterday, is just the grim milestones, the devastating statistics we are seeing, especially in the United States. New york city having to shut the biggest Public School system in the nation and also tokyo raising the alert level. The virus is front and center. Manus absolutely, and that alert level in tokyo has been pushing the nikkei a little bit lower. Lets check in on the markets. The msci drops, driven by the sentiment of rising of the level in tokyo, the highest level as we seek cases climb, the msci asia. Credit suisse saying it will still be up 12 next year. We have to deemphasize the near term and what could happen to some of the other markets. We busted above 18,004 bitcoin. Bitcoin. Is all in on man, 10 third richest of his portfolio is in bitcoin. What does it mean for the market . It could mean that the bond doubters are holding sway as we see a slight flattening. The Big Industrial story of the day, the swiss giant, abb with a new ceo at the helm. He has a track record of decentralizing success in turning around companies. Its part of the plan to boost the swiss engineers profitability. Great to have you with us this morning. Lets get to business, three big sort of material interest have you had in these businesses that are up for sale . How soon will you sell them . Good morning. Good morning, and thank you for having me on the show. Portfolio and our. E been working quite hard what is core and noncore, and weve come to the conclusion that these three divisions art noncore and we will exit. On the other hand, these assets are really well performing, highly valued assets, which means that we are not hurrying on exiting. We will find the right time and make sure that we get good pay for the assets. Have you talked to banks or potential buyers . Yet, havent started that but of course these are great companies. Thatnt feel worried about. I think the important thing is to find a good home where they can develop and grow and create value for us in the future. Thats the most important with this decision. Manus you say you are not in any hurry, but when can we realistically expect you to close a deal on dodge . Thats quite a great asset, and there will be a lot of interest in that in the market. But i think it is too premature, we will come back with that and start the process, but make sure that everybody that has interest can meet on that asset. But this is something youre looking to do within the next 12 months . Bjoern im sure that will start in the process with at least one of these assets. We will of course look for the best way for some of these businesses, we look at exit and maybe sell it, or we might spin it off. Manus a spinoff . Which one are you drawn to spin off . Bjoern probably the turbocharger, which is quite a large business, extremely well performing and a very Strong Player in the market. We believe that with a Large Service operation of almost 75 of the business and a strong it could, we believe be well positioned on the swiss stock exchange. Manus so you cant throw Something Like that to us, what is the valuation of that business and what would you hope to achieve . Valuationhat is the and bandwidth . Bjoern the size of that probably 800 billion u. S. Dollars in revenues. So i think its quite good and very profitable. The process, we look at opportunities and when the right time comes, we will do it. There is no corona discount on any of these businesses, because its really a high value asset. Move on ai want to little bit more to what is happening on the macro front. We have positive vaccine news, but of course you are in switzerland, im in london. Europe overall is dealing with a lot of restrictions on economies. How is this impacting your business and your outlook . Bjoern it is challenging times Global Industrial company like abb. I must say im quite impressed with the way the group has handled this, when we went into the pandemic, i was quite nervous if we could even support our customers during a total shutdown. Now, six months later, i think we can draw the conclusion that the group has managed to take itself at least to this stage and to deliver good financial performance, even in these difficult times. And we been managing to serve our customers, and using new technology which of course is important. And many of our Production Units are going more in the direction of automation which is an important direction for the group. Its one of our main targets. To plantvere role is new seeds, what do you expect biden to do for your business . Theres a new president elect with the green agenda. 500,000 electric charging stations is the target. Is that deliverable, and how do you win in a biden Green Administration . Bjoern i think we have to wait and see whats going to happen with biden and the policy they going to put in the market. Abb willbd become profitable. Thats also part of our target going forward, to help our customers to reduce Energy Consumption and become more sustainable. , our targetthink now for 2030 is to help our co2omers to reduce emissions by 100 megatons. Thats the equivalent of 30 or 40 large coal plants. Its quite significant. President elect biden wants to put 500,000 charging stations for electric vehicles. Like you say, you dont know exactly whats going to be done, but you must be looking at some point where you can make more revenues out of the United States with this kind of agenda. Bjoern we are number one in ev charging today. This is one of our Fastest Growing businesses. Of course europe and china have been the Fastest Growing market. In the u. S. Is going to accelerate their electric cars and the ev charging on the roads. Headline, isorite good to have you with us. Abb. Eo of coming up, will speak to another bank, southard africa. Well talk about the banks Business Plan going forward. This is bloomberg. Annmarie good morning, this is bloomberg daybreak europe. Manus cranny is in dubai. Turning our attention to south africa, the central bank is making a right decision later today against the backdrop of rising covid19 cases. Its the longest recession in 28 years, reducing expenditures is part of the governments plan to get the economy back on track. Our next guest heads the National Unit of africas lender by assets. Good morning to you, thank you for joining us from johannesburg. We spoke to your president yesterday and he said the nations more than halfway of reaching its investment target of 100 billion rand over five years. What does south africa need to do to attract the rest of that goal . Things thate key our country has got to do is to reformnt its structural agenda which has been accomplished by most sections of business, labor, community, all of them. For that plan to translate into confidence,comes in investment, accelerated growth, jobs, it needs to be implemented , and that is what is going to be key. In oure of the areas country. Manus the kind of targets set out by the president and the administration over the next is, givene question the current global backdrop we are in at the moment with covid, wave two in europe and the United States, and your own problems with covid in south africa . I think it is realistic, and isfact, i would say that it more on the modest side. Achievabley not be gethe near term, but as we along, as we continue to implement the structural reforms, as we continue to open up the economy and the private who look strong, and we create more opportunities for Small Businesses by reducing barriers and giving them what in the areancluding you must bear in and theres already talk of of vaccine, one with success 90 and the other 95 or higher, if thosef logistics vaccines work, its not inconceivable that in about two years, covid would be a thing of the past. And all that is going to differentiate countries, its how they go about setting policies with diligence and discipline to see a positive outcome. Africa is onsouth course to do that. Annmarie youve talked in the past about there is consensus between the Public Sector and the government and the need for reform. But we still dont really see it. What is the hold up . Lungisa one of the biggest holdups has been the rebuilding of institutions, the reform of the institutions. Through aca went some of thech where functions of the state that are delivery ofr facilitating economic activity, utilities, the Power Transport and logistics utilities were disrupted. An institution like that which depends on sustainability was disrupted in material ways. Nowthere is clear evidence that those institutions are beginning to gain ground. Manus and do you believe the other part of the president s tenure has been about trying to grapple with corruption . Realu see hes making inroads on dealing with corruption . Andou see it, is it real, is he moving fast enough historically on cracking down on corruption . Lungisa the evidence is very abundant. E has rebuilt institutions of course it is still underway, impeccableve credentials and those institutions have started to act against corruption. Many being arrested and charged with acts of corruption. That he began a cleansing his own anizations where they have because of the position that hold. Beand when they are found to suspect in the case of corruption, they should step aside. And of course the process of stepping aside is yet to be seen. Its there for everyone to see. Hesery confident that winning the battle. Complex. Ngs are very its not like solving a mathematical equation. But the process of fighting corruption is well underway. They want to see the demonstration of that being dealt with. Thank you for your time this morning, sir. The ceo of standard bank. Up, blackrock and targeted fiscal stimulus. Thering you more from Bloomberg Economic forum. This is bloomberg. If we are going to try to really rebuild our economy, we truly need a very targeted fiscal stimulus for those who are still unemployed. We need fiscal stimulus for some of the cities that are most impacted and i think targeted fiscal stimulus is needed in order to begin the work of equalizing the economy. That will be essential for the biden administration. That was the black rock chairman and Ceo Larry Fink speaking at the Bloomberg New economy forum. It strikes me as it is november 19 and we are still talking about the school stimulus deal potentially in the United States. Though stimulus checks going out to americans dried up this summer, and you have positive vaccine news. I wonder if that puts pressure on republicans to not have the impetus to get a deal done. A raft ofhink theres changes coming through in the last 48 hours. Is the appetite there on the republican side to do anything . Credit suisse this morning said equity markets can travel higher because we need to look through what is happening at the moment. Rallying by market 12 going into 2020. They say weve got to deemphasize the nearterm risk. Interesting, we have this push and pull from so many of the calls. Some saying sell or by the vaccine. The markets can price and future good news, they can also be derailed by bad news. 250,000 deaths, new york city, the biggest Public School system in the United States closing. Thanksgiving is next week. Similar across europe and the rest of the world, and the holiday season, christmas in december, that is the worry right now for those epidemiologists. Manus absolutely, and whether the u. K. Reopens in december and what would that look like . Its technically my thursday, technically my weekend. What i love about this story is its like my pension fund, i wish i could find the key. Christmas, bitcoin is all right. 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. Anna good morning and welcome to Bloomberg Markets european open. Im anna edwards. The cash traders an hour away. U. S. Deaths from the coronavirus reach a quarter million as new york city shuts again. Germanys finance minister tells bloomberg containing the virus is critical. Tough decisions, eu leaders will attempt to salvage