Good morning, everyone. Welcome to bloomberg surveillance. I am Francine Lacqua here in london. This is what the gap. There is a big movement on europound. That is what i would be watching. Also data coming in better than expected but really still under 50 at 41. 7. If you look at the data, the story on the markets is exactly what is happening with euro pound. Now, the fact that france is now floating a veto threat over the brexit deal makes a lot of Market Participants very nervous. I am looking at our live blog, in 2020 at funny expecthe basically says eurosterling to appreciate rapidly through the september high. Leaplks about ready to Tall Buildings if the trade talks fail. Overall, looking at global stocks really pausing for breath after record highs. Now lets get to the bloomberg first word news in london with leighann gerrans. Hi, leighann. Leighann good morning, francine. Expanding the lockdown in germany for three more weeks until january 10. Reassessrkel wants to the restrictions, saying infection rates are still far too high. It is unclear if a vaccine will be available before christmas. Now, frances warning and may veto a trade deal between the u. K. And eu if it does not like the terms. At a meeting of ambassadors, that yous chief negotiator, Michel Barnier, wants to talk about it before it is even finished. Some are concerned he might be giving too much away and leaving little. Time to scrutinize that deal. And a former french president has died. A key architect of the european integration, laying the groundwork for the euro. Card is recognized for legalizing abortion and making divorce easier he died after contracting covid19. Global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am leighann gerrans. This is bloomberg. Francine . Francine leighann, thank you so much. Now, democrat leaders in congress have thrown their support behind a bipartisan stimulus proposal as a foundation for a new round of negotiations. It comes as the pandemic continues to raise come up with 2700. Ties topping testifying before a house committee, fed chair jay powell says he is in no hurry to taper the bond purchase program. He also warns millions of americans are still out of work. Chair powell with the labor market, i think we ought to remember that despite the rapid progress in getting people back to work, which is so welcome, there are still 10 Million People out of work because of the pandemic. Joining us this trevor greethham, head of mostly asset at Royal London Asset management. What are the markets hoping for . Markets werenk the expecting a compromise much closer to the republican end of the scale. Keep in mind the democrats wanted to . 4 trillion, and we are getting just short of 1 trillion. What is 1 trillion these days . There are certainly a lot of focus on the georgia runoff, because of democrats were to win both seats, they could come back with a stimulus package later. And we have got a light at the end of the tunnel with the vaccine developments. So the markets are taking a pause for breath, but the positive fundamentals for next year is still very much in place. Francine but are they already priced into the markets, trevor . What needs to happen for markets to go up from now . Trevor i think probably what needs to happen is we need to get better virus numbers. Theres a lot of concern, understandably, about death. Because of the thanksgiving holiday, that is that a parent because in the new infections, but that could very well increase quite a lot in the next couple of days because of the thanksgiving mixing that has been going on, so i think the markets are quite concerned about that. I think it is quite stretched. Private investors are very plus, directors in the u. S. Are big fellows of their own shares and have been since the election, so there are some concern that markets are overrating things in the shortterm. There could be a dip, and if there is a dip, i think a lot of people will want to buy it. Francine then what will support it, trevor, longerterm . If we have a vaccine and a pickup in the economy longerterm, are we going to policy, you know, realign itself . Trevor it is earnings, really. When you think about covid winners and losers, they are far away from where they were this year. Strong growth. Ry particularly in those moving sectors, which are cheap in valuation, and that can drive the market higher. The real question is if bond yields stay low. If bond yields stay low, that does not change the valuation of Consumer Staples too much or technology stocks. Is my base case. But there is a bit of concern out there that you will have a case in markets that are better traveled into rise. If Growth Stocks selloff, you could have a value rotation where the stock market might struggle to go up, and there are plenty of times in history where that has happened. Example whereat the economy was very strong, and because it was rising, they did not like it. It is really crucially about monetary policy. If francine trevor, win are we going to see worries from investors about debt . We are creating record debt levels, and for the moment, policymakers seem to not worry about it. When do we start thinking about that . Trevor well, there is some very interesting work on this. Book has written a recently on inflation. What he has pointed out is debt levels rising to 100 in the u. K. , for example, where debt drops, this is about aging demographics. The governments have got to find a way of dealing with this debt, and growth is not necessarily the obvious option. Productivity is not really improving as much as you might think, and maybe, because we are using tech a lot more, we will see a boost in productivity. That is something to be hopeful about, but i think inflation will be part of that makes, and it will be dressed up in various ways about average inflation target from the fed, Central Banks being nervous about debt levels, Interest Rates being kept low by Central Banks, possibly also yield curve control, you know, if bond yields start to rise too much in 2021, do Central Banks step in and say no, we cannot take any risks with this recovery . We are going to keep yields capped . Those are things we will c. P. A. You will also hear rumblings about those are things we will see. He will also hear rumblings about inflation and that as part of the mix. If you start raising taxes and that, we could see quite a rapid relapse in 2022. Francine trevor, thank you so much. Trevor greetham from Royal London Asset management stays with us. Coming up, opec gets closer to a deal with output after failed talks earlier this week. Will they find an agreement . We will bring you the latest shortly. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. I am Francine Lacqua here in london. Crude oil trading at 40 a barrel. That is after failed talks earlier this week. A source told bloomberg the focus is on production cuts over federal. To ouret straight commodities team. Javier, what are we heading towards . What will opec decide . That they still have a voice but dont rattle the boat too much . Well, francine, a few minutes ago, i was talking to one of our sources, and i asked if it was positive, so definitely the news within opec has changed dramatically over the last 48 hours. Every one of the members, the group was meeting on monday, it has been the last two days to hammer a deal. A seems we are heading compromise solution in which increasing goods gradually, not going to increase generally in one single swath, as it was planning, by 1. 9 Million Barrels a day. It is not going to add the threemonth delay to the increase that they were proposing. It is going to have an element of delay, an element of gradual increase. But certainly the move has improved significantly in opec, and they are heading toward a deal today. Avier, tapering starts in january, or will it actually start a little bit later, and how much difference does it make in the oil market and the oil price . Javier that if the element we do not know. I do believe there will be an element of delay to that increase, that gradual increase in production, but whether it is going to be a delay of one month or two months for a few weeks is something that the ministers need to agree when the meeting starts today at 2 00 p. M. Vienna time. Certainly a few weeks is going to be very important for the markets because of the balance of supply and demand is so, so fragile at the moment, but i think that the market has no there were reports yesterday night that opec was heading to the new type of proposal of a gradual increase in production, and the markets this morning, it is not much tomatoes. 4 , but the market it is not much,. 4 , but the markets believe they are at least getting something that is not an immediate increase in production would be enough to keep prices supported at current levels. Francine javier, thank you so much, javier blas there, he leads our opec coverage. Trevor greetham with rea london Asset Management is still with us. Trevor from the first lockdown in march and april, we can see things like availability data or restaurant table bookings, they dipped very dramatically in april and they dipped again recently in some countries, not all countries, the u. S. , for example, has not seen another lockdown, and china, they kept the virus under control. I think the real question is what will happen in what will manufactured goods, because if they start to travel, they will come back, and if people start to travel more, not as much as before, the but there will be travel, that helps oil demand, and retail sales held up extraordinarily well in 2020, because people have got money to spend on goods rather than services, and as a result, manufacturers want to fire up their factories as well. I think on the demand side, there is quite a rosy outlook, and i think opec wants to make more revenue. Copper the new benchmark, trevor, for how the World Economy is doing . If you look at, you know, the price of oil, the dynamic is we could be heading toward peak is notcause oil renewable, and there is all this talk of climate change, but what does it need right now . Trevor equities, bonds, currencies, commodities trevor it tells you a lot about the economy, and the reason for that is there is not a operating supply for copper the same way there is for oil, and as a result, it tends to reflect supply and demand dynamics very quickly, demand dynamics particularly very quickly, and it has been very strong, so that is telling you about the reopening. The chinese economy, you know, called a lot of this earlier this year, in the sense that for china, covid was a 11 problem. The economy has a onemonth problem. The economy has been recovering ever since. That is why demand is holding up so well. Francine is there something that makes you nervous about the chinese economy . Is it pboc policy . Trevor yes. We are starting to hear more about the fall allowed. Beingay defaults allowed. That may or may not be serious. People are looking at very leveraged factors. We saw that with the Wealth Management a few years ago. The collapse in the economy. But there is also rumbling about a tightening of chinese policy at some point, and that is, i think, perhaps the first sign of a central bank talking about tightening in a serious way. Be i understand why it might china that is the first to talk about tightening, because they were first out of the lockdown, and if the World Economy is really strong next year and theres lots of demand from consumers, then you could see, you know, a big boost in growth next year that they want to get ahead of. The policy is more about going from super easy to a more neutral position. I wanted to gor, back to something you said about treasuries but also the dynamic between treasuries and gold. When did we get something that looks a bit like, you know, the old normal . Well, i mean, treasury yields, if we are right to suspect that yields my stay rly low, i do not think they are at the moment free risk. But if yields stay relatively low and inflationary pressures are actually building the underlying economy, then what you will see is a further drop in real yields that go deep into negative territory, and there are two things that tend to drive the gold price, one is the dollar, assuming a weak dollar trend, the others deepening negative real Interest Rates. At the moment, real Interest Rates are picking up on signs of optimism on the economy, and if we see nominal yields capped, and breakeven inflation rates have to widen by going more negative, that could be another big leg up for gold. At the moment, you know, i would be nervous about buying gold on the basis of what is happening with Interest Rates. If you start to see real Interest Rates go more negative again as breakevens widen, then i think you can see more progress. Francine thank you so much. Head ofreetham there, multiasset at Royal London Asset management. Coming up, jack lew 1130 a. M. London time here on surveillance. This is bloomberg. Year,ying into next including the 50 million, 1. 3 billion in total, i do not think this is going what we are providing against in the first half, but of course we are ramping up reduction extremely quickly so that we can get the vaccine to everyone as quickly as possible. Francine well, that was the beyond tech chief commercial biontechsean merritt chief commercial officer sean ett talking about a vaccine before 2021. The vaccinel that can get approval before christmas. Of course a very different type of vaccine, but we also understood by speaking to the astrazeneca chief executive that he needs to go through a second set of trials. Now lets get straight to the Bloomberg Business flash, heres leighann gerrans. Hi, leighann. Leighann hi, francine. Nestle is investing 3. 6 billion dollars in an effort to fight climate change. Plant 300 Million Trees and help farmers shift to more Sustainable Agricultural practices that also plans to get 100 of the electricity from renewable sources within the neck five years next five years. Daimler is proposing the former boss at bmw and volkswagen lead a supervisory board. It wants them to take over as chairman in march. The carmaker is currently undergoing a major overhaul, focusing on bitter cars and cutting thousands of jobs. Isd french utility o lining up advisors. Bloomberg sources say bmp, credit suisse, and lazard have been shortlisted for potential roles. It once about 5 billion euros for the operation. Assays no official comment of yet, and that is your Bloomberg Business flash. Francine . Francine leighann, thank you so much. Coming up, we speak to spains Foreign Affairs minister, Arancha Gonzalez laya. Getting to the markets, there is one currency trend actually, the currency pound, that is what i would say if i were tom keene i spend too much time with tom keene. [laughs] eu investors have warned Michel Barnier not to give too much away in talks. In fact, france has also warned it could veto a trade deal between e. U. And u. K. If it that is what we are watching out for. I will show you that as well we will talk more about brexit and the Eu Recovery Fund next. This is bloomberg. Is bloomberg. In a land not so far away, people are saving hundreds on the most Reliable Network with xfinity mobile. They can choose from the latest phones or bring their own. And because they get nationwide 5g at no extra cost, they live happily ever after. Again, again. Your wireless. Your rules. Your way to stay closer together this holiday season. Switch and save up to 400 a year on your wireless bill. And get 300 off when you buy the Samsung Galaxy note20 ultra 5g. Learn more at xfinitymobile. Com. Francine economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua, here in london. Lets get to the bloomberg first word news with leighann gerrans. Leighann good morning, francine. Democratic leaders are throwing support behind a bipartisan stimulus plan worth over 900 billion. They see it as a foundation for a new round of talks with republicans and the white house. It marks the first public retreat from the democrats much larger proposal for nearly 2. 5 trillion of spending. Iran has approved a bill forcing rouhani to end nuclear topections, a blow president elect joe biden, giving his Administration Just weeks to make a key breakthrough with tehran. The powerful Guardian Council made the decision, which has been criticized by rouhani. Opec is making talks on oil raises the, possibility of salvaging a deal. Earlier in the week bloomberg sources say the focus is now on the gradual easing of output cuts over several months. It is unclear if the tapering would start in january or later in the first quarter. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more im 120 countries, leighann gerrans. This is bloomberg. Francine . Francine france has warned it could veto a trade deal between the u. K. And the e. U. If it doesnt like the terms, pressuring negotiators. Warned of theoy danger of brokering a deal with you leaders. Were talking a month left before the transition period. Exporters from around the block will be anxious for a agreement. Spains of a trade is worth more than 35 billion. Joining us now is Arancha Gonzalez laya, the spanish Foreign Affairs minister. Thank you for joining us today. Are you worried that Michel Barnier is giving too much away, could give too much away in the u. K. Just to get a deal by the end of the year . Mandatee trusting the we have given to the negotiator and his ability to broker a good deal. We trust Michel Barnier, and we hope you can come back with a good deal. We are in the last lap of negotiations. The negotiator knows very well what he can do and what he it do, and we are takes two to lend this plane. The landing in my view is rather clear, or at least it is clearer than it was before, and what we need to do now is put the political wheel on both sides necessary to get to the finish line. Francine you have the full consulate of Michel Barnier of france yesterday reaching raising serious doubts about what the negotiator would bring back. With that, there were other reports from other countries, belgium, germany, and denmark. Do you think at this point it is overdoing it . Min. Gonzalez laya i dont think that is my reading of the situation. There are specific interests, the interest of ensuring a good deal where it will not be unfair competition on the u. K. Side for the future, that it is a level playing field. But we did in the last hour is examining with the e. U. Negotiator of the state of affairs, like normal in any other negotiation in which the European Union is involved. Full confidence that our defending thel be interests of the European Union and its Member States in its totality and doing well. Francine do you see december 31 as a hard deadline, a real deadline for a deal with the u. K. , or would you be ok to extend negotiations if it and getting the right deal . Well, izalez laya think on this, i think the answer by the u. K. Months ago. They say very clearly that they it moving beyond december 31 of 2020. What do u. K. Gave us was we need to deal by the end of the year, so obviously if there is no deal by the end of the year and if negotiations are not expected, what we will see is the u. K. Moving out of the European Union , borders becoming the reality between the e. U. And the u. K. , and in the case of spain, with andborder between spain gibraltar, because that will be the external border of the e. U. So this is why all of our ,fforts must go now to a deal to have the u. K. Exit the you, and that negotiating curve bringing certainty, bringing clarity, bringing stability, which we all desperately need, which companies and our economic operators desperately need in this time. Francine minister, whats happening with france . The french are briefing with brussels that the french are extending negotiations. What is the game that france is playing at the moment . What are we looking at in terms of the situation . Min. Gonzalez laya i want again to rhea gatorade to reiterate that this is a discussion that we had some months ago, that the e. U. Was ready at the time to consider extending the transition period, but that the u. K. Was very clear and firm that it would not extend this period. More inuestion is london than it is in brussels. Francine if the u. K. Word to prepare if the u. K. Would be thereed to extend, would be happiness with that . Min. Gonzalez laya i do not answer hypothetical questions. This is not a hypothetical question that we can contemplate because this question has been answered in the past. If circumstances change, we will look at it. Francine i hope the circumstances change and that you come back on bloomberg. Hungary has said they will not list their budget on the Recovery Fund. Is it time for the rest of europe to forge ahead, push ahead without these two countries . Min. Gonzalez laya what is very clear is that both countries are working on a very tight rope because they are business because their businesses and citizens and economies need to stimulus as much as the rest of the European Union needs the stimulus. So at this point in time, it is a question of responsibility, and that is why what we are asking is for responsible behavior on the side of poland and on the side of hungary, understanding that they may have concerns, and understanding that we have always been ready to listen to those concerns. But it is now a matter of responsibility, but not just visavis the European Union, it r on businessesei and their own citizens, who are also feeling the hard impact of the second wave and their economies, and we are looking at this Recovery Fund as a to get to their recovery come also in poland and hungary. Francine if they exclude themselves out of this historic package, do they remain viable e. U. Members . Min. Gonzalez laya i remain convinced that at the end of the day we will be able to find a consensus. At least this is what spain will try to do. We will work hard to conceive to achieve this consensus because we think it is an absurd option. In polandsinesses and hungary saying. The question now is to ask hungary and poland to behave responsibly and to work to achieve this consensus, to join the consensus of the rest of the European UnionMember States so that this Recovery Fund can be put to work as soon as possible. Youcine minister, have spoken to those countries . If you look at the people in charge of negotiations, they seem to be pretty dispirited about exactly what is going on, about the tone of negotiations. Why do you still remain optimistic at this point . We remainlez laya optimistic. What we are doing is speaking with them, talking with them, reaching out to them because our prepared solution is a solution for 27 Member States. This is how we crafted this Recovery Fund, and this is how we hope it can be operational. But again, be very clear with them that what we need to do now is move and move fast, because otherwise, of course, what is at stake is the recovery, and this is a huge responsibility between your country and the recovery of your country and the european economy. Therene minister, i know is a lot of talk and a lot of debate about ski resorts and covid and the third wave. What will happen in the next couple of weeks . Do you worry if ski resorts be of and this could National Competence and we will see a pretty ugly wave of coronavirus . Min. Gonzalez laya what we are doing, we are doing this with all the regions in spain, and consensus among all those regions, the measures that we will apply in the very special period ahead of christmas. It was agreed in spain yesterday , looking at limiting mobility in spain over christmas, understanding this is a special time for families to reunite, limiting the number of family members that can gather, and relying a lot on citizens responsibility and good behavior. These measures have now been agreed. There are other discussions that continue. For example, what to do with areas like, for example, ski resorts. The discussion remains open, but we will prepare and we will savor like we always have been through this pandemic measures that help us protect citizens, protect their health, limiting mobility in a surgical way so viruse can control this in the best way possible. The second wave in spain now is showing very clear signs, signals of going in the right direction. We now need to work hard to make sure we do not get to a third wave. Francine thank you so much, they spanish Foreign Affairs minister there, Arancha Gonzalez laya. Coming up, with global deals ahead of precovid levels, what those 2021 hold for the m a market . We will ask the jp market the j. P. Morgan global head of m a. That is coming up next, and this is bloomberg. Francine this is bloomberg surveillance. According to j. P. Morgan, over 20 mega deals worth more than 10 billion each have been announced since the beginning of july. So far this year the company has advised on deals worth over 500 billion, and j. P. Morgans m a teslasl includes billiondollar sale of its businesses in thailand. And Thyssenkrupp Elevators take over. I know you cannot talk specific deals, but overall we have had a pretty encouraging m a flurry in 2020. Is it just going to accelerate into next year . Good morning, francine. It is obvious lee the time of is year when there bullishness about the year ahead. In july of last year, there are good reasons. Everye seen mega deals in one since july. Deals above 10 billion. There are no signs of this pace slowing down. It is really across all regions and all industries, and it is driven by three things. Number one, acceleration in domestic consolidation, for banking, energy, real estate, and telecom. Secondly, we have seen an increase in the health region, and health care and tech and also industrials. Finally, the first european this champion is is a theme that is called for a long time ago and that finally became reality, but now it is appropriate for more. And what is different from the past is that there is a Strong Political desire across the european governments to create more european champions. But if you add to that on top, over 80 billion of announced deals, you can see it is right for m a bankers. There is no christmas break for m a bankers. Francine no christmas break, right . You said this is cross sector, cross region. But a lot of that m a was pushed by the u. S. When will it come to europe . Are there sectors that are ripe for consolidation . Is it banks or is it Something Else . Dirk it is not just the u. S. In the last couple of months it has been very healthy. Clearly europe had to catch up, and that is what we are seeing now. If we look back at 2020, there has been a number of European Countries that really like the global ambitions, that went ahead and made some pretty bold moves into the u. S. In the middle of the crisis. A lot of activity in asia, in the u. S. , but also in europe. Francine if you look at u. K. Companies, they have mostly been targets in north america but also private equity futures. Do you see that trend changing anytime soon . Dirk it has always been a struggle between the u. S. And the u. K. , so i think that is nothing new. From that point of view, clearly the uncertainty around brexit, the u. K. Has not had the strongest number of years, but there is definitely more to come. Francine from where . Does Brexit Change the fortune of the u. K. . Dirk it is not just brexit. As i said before, the trend at the moment is really across industries and across regions, so it is not just driven by one single factor, but we are really seeing that in this environment, as to become more important. Struggled to deliver the implied growth assumptions, and that is where m a comes in. With m a, we really have the chance to increase margins and your bottom line. That is irrespective of brexit, and that is why i think in the u. K. We will also continue to see a healthy m a pipeline. Francine we are seeing various european dealmakers setting up now. Are there enough targets in these vehicles to get to work . Dirk when you look at the u. S. Ipo market, clearly the 2020 was the year of the spec. In november alone, we have seen 10 spec mergers. So far it has been all u. S. , but i think your question is right. It is clearly the risk of a certain imbalance between supply and demand and that is why we are now seeing specs looking outside the u. S. For targets, and that is why in 2021, specs have become a target in europe. That wereore specs initially raised in the u. S. , looking for targets in europe. Thatis clearly something will stay at that has created a bias that has become an important kind of component in the m a market. Francine . Quickly, are you expecting activism to come back in 2021 in europe, or is this something that dirk absolutely. There are two things. Number one, it has been a big increase in engagement, also traditional investors becoming much more outspoken and vocal. Even more interesting, private equity has become more aggressive. And in certain situations, they are becoming activist. Activists they are more like private equity firms. They are looking for ways to operate this private equity. But for companies, especially at the time that they have lost their path during the crisis, that could mean in 2021 there suddenly in an approach, mostly private equities and activists at the same time more or less. So we will be very interesting to see how that develops. Francine thank you so much, dirk albersmeier, global head of m a at j. P. Morgan with great insights into the trends that we will see in 2021 and beyond. Coming up, amazingly competent. Nobel laureate praises joe bidens economic team. We will hear his thoughts next. This is bloomberg. Francine this is bloomberg surveillance. Im Francine Lacqua in london. A letter focuses on the markets, and the markets are looking at a lot of things, first of all the record high when it comes to stocks, and they are taking a breather today. The other thing they are watching out for is what is happening with brexit. It is a surprise to many that france is threatening a veto focusing on a veto threat. That is putting pressure on the eurodollar trade debt. I dont know whether we have eurodollar, but if we dont we will get it to you in a second. It is clear that global stocks are pausing. Lets get to the Bloomberg Business with leighann gerrans. Morning, good francine. Officials from the e. U. And the u. S. Are stepping up work to settle the longrunning dispute over subsidies. Dombrovskis says the two sides are actively engaged in talks, hoping they can reach a deal to cancel their titfortat tariff. The deal expands its u. S. Asset management business, giving the size and scale to compete with larger rivals. Look are he is pivoting toward Asset Management and Financial Services and away from more traditional investment banking. Daimler is proposing before boss of bmw and volkswagen lead supervisory board. Bernd pischetsrieder to take over for Manfred Bischoff in march. Biggerpany is making cars and cutting thousands of jobs. And the french utility is lining up advisors as it prepares to offload some of its services businesses. Bloomberg Services Says bnp, credit suisse, and lazar have been on the shortlist list for potential roles. Foroptions include the sale an ipo, but there is no official comment as of yet. And that is your Bloomberg Business flash. Francine . Leighann, francine leighann, thank you so much. Bloomberg surveillance continues in the next hour. Tom keene joins me from new york. We will focus on brexit. Again, we are seeing a bit of eurodollar, but actually, no, buturodollar europound. We have a great discussion with thatrd jones, saying despite pmi uphill battle for european expectations, there could be movement on the euro on the back of a possible brexit deal or not. So keep an eye on that. This is bloomberg. [announcer] imagine having fuller, thicker, more voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music francine americas deadliest day. The u. S. Reports more than 2700 covid fatalities in a single day. L. A. Issues a stayathome order. Macron turns up the heat. France threatens to veto a brexit deal if he doesnt like the terms, piling pressure on the e. U. Not to make more concessions. And, stimulus in time for the holidays while Democratic Leaders back 908 billion stimulus proposal. The concession puts the ball in the white houses court to reach a deal by year end. Good morning, everyone, and welcome to bloomberg surveillance. Im Francine Lacqua in london. Tom keene is in new york. Tom, a lot of the focus is on the stimulus deal, smaller than expected. We will see if there is some kind of agreement on this, but a lot of the focus is on the renewed threat coming from france. Veto, at the a same time the french saying they are negotiating to 2021, means a lot more uncertainty for brexit. Tom