Waiting for trade clarity, markets await updates on the trade war. The pboc says it has space to na manufere if needed. And new pickup line, elon musk looks to entice new buyers as he unveils an electric powers cyber truck that can with stand a sledgehammer but not metal balls, apparently. Lets take a look at whats going on in equity Index Futures this morning. It was a muted and mixed trade over in asia. As we finish the session,s the holding up in that sense. We do see here in europe not Much Movement on the continent. Dax up. 4 of a percent. It had been down to 129 926. Now its coming down to 129. 6. But as the pound loses ground, its futures gain. Still only one or. 2 of 1 . But its early in the session. Down dayld turn into a for u. S. Stocks. Christine lagarde making her first well, her Second Public speech as e. C. B. President in an hours time. But it should be the first on monetarily policy. At least we hope so. Banking integration and renewed calls for fiscal stimulation. For more on this, maria joins us. Maria, we heard madam lagarde in her first speech back on november 4th here in berlin. She didnt say anything about monetarily policy. What do we expect to hear from her today . Good morning, matt. There is a lot of expectation built into this speech. I hate to disappointment. Were being told that today she is not going to make big statements. That this is not going to be that kind of speech. If anything, were going to get a broad sense of what european policy should look like in the eyes of Christine Lagarde. This is interesting, matt, because you know very well investors havent heard a lot from lagarde. Shes been radio silent. Investors dont know where she stands on it. They dont know where she wants to take policy from here. We are being told that this is not going to be too exciting. She wants to focus on teamwork and building consensus. And that is probably because that final decision from mario dragon was so controversial at the governing council. We know it created divisions, tensions. And Christine Lagarde wants to focus on those tensions. Shes not willing to signal any direction on the monetarily policy fund. Matt all right. Thanks very much for joining us. Were going to bring you that speech live when it kicks off, and of course, Market Reaction if any follows it. Lets get in with mark cudm, ooer. What do you expect from Christine Lagarde today. Is she going to tow the droggy line . I think theres very little relevance for maria. It would be shocking if she discusses it before she had a meeting with her board members. It would be rare for her to make any monetarily comment. Theres any chance to relevance today, perhaps she reiterates the desire for fiscal stimulus. Thats a wellknown stance. I dont think there would be much of a Market Reaction. Theres a chance of surprise. But it would shock markets if she doesnt move anything today. To moveat do you expect markets today . We dont see a lot on futures. Are we going the get some kind of clarity on trade which seems thats what the markets want . I think its a good question. Its been an incredibly quiet died. I have been distracted on other administrative issues and it did not take me long to catch up on whats going on in the asia session. I think the p. M. I. s could be relevant. The g. D. P. We will be watching the p. M. I. Data. It remains a present issues. Theres some study of the kissinger comment since the start of the cold war. I dont think it changes the game. It just means there is that focus on trade headline. The immediate focus on the p. M. I. s otherwise youll wait until the u. S. Session. Admin is the worst. I think we can all agree. You mentioned kissinger there, and your n. Y. Question of the day is what would trade cold war do to assets . What kind of feedback are you getting from clients . I think, you know, the genuine feedback this is too longterm of an issue to drive markets today. I think there is an underlining concern out there that the tension weevep seen between the u. S. And china is just the start of a much bigger shift in their relationship. And you know, while some point to it being under the Trump Administration it is notable that this bipartisan support on hard line china and the u. S. I think many people warned this already that theres a risk that the tensions that weve seen in the last 18 months is just the start that may last for years or decades. And that would undermine the Globalization Team that weve seen in previous decades. We are seeing that already. A lot of the implications if this is ongoing are quite large r how businesses operate and it affects the open economy in asia. Its a big scene but its not to decide this week or next week. Matt mark, thanks very much for joining us. N. Y. Managing editor. You can participate in the conversation. Give your take on what a trade cold war would do to asset prices. Go ahead and type ib plus tv go to answer the n. Y. Question of the day or to comment on anything really. You could also email me irectly. Mtmiller bloomberg. Net. We go to juan in hong kong. Thanks, matt. Indicted on charges of bribery and fraud. Thats the latest setback for israeli Prime Minister benjamin netanyahu. Hes hitting back accusing Law Enforcement of trying to stage coup. All this as an inconclusion election is raising the question of a third vote in the year. I feel like this is going blow up, thats being probably up by fiona hill. She said she told that to gordon wasnt when he forthcoming. He wasnt involved in security or foreign policy. But instead a domestic political errant. Clearly advance russian interest. As republican and democrats have gree agreed for decades, it plays an Important Role in our national security. As i told the Committee Last month, i refuse to be a part to e a part of the narrative that the ukraine attacked us in 2016. Global news 24 hours a day. Powered by more than 2700 journalists. Im wan ha. This is bloomberg. Matt thank you very much. With your first word news out of hong kong. Blade runner, elon musk flips the script once again as he unveils a cyber truck in los angeles. We are live in l. A. Next. And remember, bloomberg ra radio mobile device or on d. V. D. Digital. Tune in. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. We are just about 17 minutes away from the start of cash trading across europe and in the u. K. And you can see futures on the continent are mixed. We do have. 4 gain in futures in london. But more importantly in los angeles, elon musk has a new pickup truck line for consumed u consumers and investors. He has a no octane event in los angeles as he looked to tempt a new audience to electric vehicles. One man always close to action in l. A. Is our own ed ledlow. He joins from us the tesla Design Studio. Ed, talk to me about the thinking behind this move. And i think europeans cant quite grasp how important a pickup truck is in American Culture and certainly its massive in terms of sales to american consumers. Exactly right, matt. 75 of what north americans are buying are light trucks. This is anything from a big sufficient to a very heavy duty pickup truck. Thats an area dominated by the pri. It e cyber trucks starts at 39,900. It can tow more than 14,000 pounds that really does make it competitive against traditional engine. Combustion they say it would resonate with core truck buyers here in the minority american market. The space age body is made from this ultra reinforced steel. He same he plans to use in the starship. The chief swung the cyber truck and didnt make a market. But they did a second demo where he threw this metal board. It smashed. Elon invited him to do again. I dont think that went to plan. But whether the price point or the key price point all the specks will win over traditional buyers of the pickup trucks. Everyone from farmers contracters are all the way around in the cybers trucks. But they wont go into sale until 2021. In my personal opinion, i think it looks awesome. Its very delorean. I think its the coolest pick up truck design out there. Aside from the bowling jer which will be in small quantities. You say its not going to be on sale into then. Have you heard anything about the possibility of this being sold in europe . Or is it only destined for american shores . Look, internally at tesla, they are a global exean company. They want to get it to asia as well. And while that segment is big in north america, its growing as well. You see the moment frum the north american market. I just spoke to ben c oombings llo. E said dont worry about the price point is key. Low volume. Elon has said in the past that they could come back if this truck doesnt appeal, they could come back with a kind of more straightforward pickup truck for a Broader Market here in north america and beyond. Matt ed ledlow staying out late in l. A. Teslas Design Studio checking in on their cyber truck. Really kind of space age design. Also very much as i said delorean kind of look, which i thought was very cool back then. I still think it looks quite cool. Openfully it runs a little bit better than a delorean did. Lets get a look at the commu company forum. There should be progress on Banking Union by december. Were still very fragmented within the single banking market. And the goal of the European Union is to have Single Markets for all goods and services. So we still need to move a lot to get that done for banking services. Does it mean, that its almost impossible to get something by december or will we get there . I think well make progress by december. Our position has been published. So were debating a lot of the questions we have. We dont know if well have something definitivityly in the next three weeks. Definitely aim to get the results in december. What about some of the concessions . Well, we think i mean, our proposal has several pillars. We think there needs to be furthestist reduction needs to be furrer improvement to the resolution regime for banks, its when they come into crisis. We need an enhancement of the harmonization for the Smaller Banks that dont fall under the resolution regime. Union. We need the for example of minimum transation. And if moved ahead we do think we can move ahead on to a positive turn. When do you think that is . It depends how much we can reduce the risk in the Banking System. Thats exactly the component of the negotiation. Then we have to agree on when we will tear down the wall that still prevents the Common Market for a Banking System because at the moment every member state has their own capital or liquidity rules. Are there company nas are pushing back . I mean, the good news is everyone has their lem where is theyre pushing back. But i think the good news is that, if we all give up our red line, then we can make very substantial progress. Because there are mechanisms that if we improve it, if we produce risks, if we find some enhanced ways of sharing risks. Then everyone can help i. It will help everyone to move the red line. The deputy german finance minister speaking to la coy in beijing. Much more than that throughout the day. We are minutes away from the open 10 minutes exactly now of stock trading across europe. Were going to take a look at the issues. You want to watch next including talo oil, the lack of visibility on the play plation. Were going to be live in leipsic as the s. U. D. U. Kicks off. Well bring you the latest in german politics. This is bloomberg. Matt seven minutes to go until the start of trading. Lets see your stocks to watch. Emory is looking at tello oil. Our team is covering play tech and danny burger on vivendi. Whats the story on telo oil. A city has cut them from buy to neutral. Its tough look at the outlook for the campaign e company. The expiration company, they lack that visibility. And theyre talking about the risk of their ghana production. Which weve seen them decrease the production. Thats why city is cutting them. Oil prices are soft this morning, matt. Matt emory, thanks very much for that. Macarenia. Whats the story on it . The provider, play tech said this morning, i beat that for 2019 a little below consensus. It to be expects well below expectations. Its highly talenting trading conditions. This year. And they are called down as much as 10 this morning. So we will be watching for that. All right. Well Pay Attention for that. Ive got a story on media set. Whats the story. The two have been futing for some time. Combined its operation into a double holding campaign. It owes aubt 20 . It sees this as a good will gesture. Its selling at about 20,000. Watch for both of those to be on the move today. Matt all right. Well watch out for those danny, duh very much. I just want to point timeout viewers and clients you can get all of the equitys team stories by typing first go on the term nafment and you can get it under the news section. Thats where youll see a running ticker of all of the stock stories. We youd need to get prepped for your open. Just four and a half minutes to go. We do see a mixed trade a mixed trade in terms of equity index future this is morning. But the futures are still up, about 1 3 of 1 right now. Pay attention for a little bit more action in london. Then maybe youll see in frankfurt and paris. This is is bloomberg. Matt we are a minute away from cash trading in europe and in the u. K. Lets take a lack at the markets. For that we go to emory. Emory . Emory ation markets relatively quiet. Up only 1 of a . Mark cudmore was talk about that earlier. They are supposed to be down for row. Nd week in a we have p. M. I. s this morning. How was the german Manufacturing Sector holding up. The pound trading 129. 15. Talking about the extra land pack. And of course, the labor party s unveiling the man testo. Fan fest toe. We have seen a bit of a risk off for the entire week and its entirey. Lets take a look at how european equities have opened up this morning. We have trade being the main drivers. Robert light houser given us this invitation to go to beijing. What happens with the hong kong bill . President trump signs that into law. Complications i imagine. Equity futures. Back. L as spains i you know stocks. It will be interesting to get these p. M. I. s. Were going to get the first time as well, matt. How is brexit and the election impact the u. K. Manufacturing. We have Christine Lagarde, a monetarily policy speech. What is he going the say about race . Is it low for longer. On . Is going a lot of green on the screen. The health care sector, glean the korean. Yesterday, the only group that ended in the green were auto and auto part makers. We are seeing a little bit of busy after a lack luster asia. What do you see on individual movers . Were seeing a pretty even split right now, emory in terms of winners and losers. The company, you see the big ones up there, the top novartis is one of the big gainers. Roethlisberger. Shell in terms of adding the most points. All of the gas line oil and then rio tinto. The mine others are eals also doing fairly well. Plus, the big drug companies. Losers on it. And you see a couple of smaller names putting up some really big losses. Eden red for example is the biggest lose fler terms of points. Its also down more than of right now. It omps prepaid vouchers for a product an Services Like restaurants and childcare to reward employees and loyal customers. Its a company out of france. Right now, its putsing up the biggest losses of more than 6 after malware infection. Reports of a cyber attack on him. Heaping to drive that stock down. European marks are opening slightly higher. In the u. S. No, talks joining us fun managers. What do you think about the state of trade talks and are you concerned that were in kind of the foothills of a cold war. I believe. Dr. Kissinger said yesterday. Perhaps, weve seen so much volatility. Trade talkses coming in and then going away. We have seen some positive statementses from the chinese trying to reasewer shem. Does get some hope. But certainly there will be some resolution. Before the owned the year is now being lower the probably of that is. And thats what investors are really worried about. What you do think about risk as sets then. Did you take some profits off the table here . So there,s a lick of that. Weve mostly been focusing on on defensive sectors through the last couple of months. Some of the quality namentse have been coming through. Weve seen it. Leading the market. Thats already. Expectation from now until the owned the year. Also, looking into next year, earnings expectations are looking alqaeda high. And if they are really bringing on expectations down. What do do you think of regionally in terms of stouks. Is there an increcks that you lytle better than the left. Or are you really looking at individual fehr for companies about looking for value plays. Sot sbch very much. Its a stock pick. When we do see these things its comical to look at the underlining fundamentals. To move away top of is short terms. In terms of individual areas certainly within the u. S. Im looking for company. You have more global exposure includesing some of these higher groceries. I notice youre also looking in terms of turpped radar play. And the waste manage. Recycling. Is that sort of an e. S. G. Play . Yeah, its an area that has coupleowing for the last of years. And to that scenario thrts lots of opportunity alow that the supply change. Something that we need to be doing inner resource in. How we can contribute to some of the kind of challenges that we have within the world today. Is there you know, germany had this climate package. But for example scandinavia. Or is it s it parade out globeably. Theres a lot of works on green tech and glenal solutions. General ithin and solutions. They have a best weighistishish sthue. Also thetary police for them. Lacking at that solution sides of things as well. Its very much on the offensive mind for consumers. So thats an area thats doing some good innovation itself. Youre not avoiding china throughout the trade war, throughout the issues with hong kong. Youre still staying invested. He sent me some of the volatility and at no time ne latest sup