Maintaining ties with venezuelas president. And sprint to the finish. Deutsche telekom sees profit rising as the companys tmobile unit edges closer to stealing a landmark u. S. Deal. Just under 15 minutes away from the start of cash equity trading in europe, lets take a look. Irst off at futures green arrows across the board put futures up. 7 , more than 50 points right now on that optimism about more stimulus injections coming from beijing. Take a look at u. S. Futures for the second trading day of the week. Remember, shorten holiday week. Still have a solid seven hours until u. S. Markets start to think about opening up. Throughout the morning. Lets take a look at the risk indicators we can glean from the gm them here. In terms of equity indexes, you can see in asia, we have decent gains here. In terms of forex, we can see a intle bit of a mixed picture terms of the hong kong dollar and japanese yen, little changed, but we do see some yen strength. You see that in some other assets as well for example. Aboveample, gold climbing 1600 a troy ounce as investors in some corner of the market look for some kind of safe haven. With our into markets mark cudmore. Lets start with what we see in terms of the risk mood today. The markets seem to expect more stimulus injections from beijing . Is that smart, and do you see it coming through . Mark i think absolutely, they do expect more stimulus. Actually, i think they expected globally, not just from beijing. All eyes are on what china does and how they reacted to the virus, but we are in this consolidation phase. We have equity markets doing ok, generally slight risk on those, but there are sections that look a little bit more negative. It is a consolidation phase after a period where markets have generally been doing ok. This whole paradigm where we will see a lot of stimulus against the negative Economic Impact from the virus. We are in a stage now where investors are looking at how quickly stimulus will affect assets. Matt we do see, though, big packages coming through. For example, in singapore, youve got the biggest sort of deficit spending going on. We were talking about the 5. 6 billion singapore dollars since the 1990s. How does that affect much assets close to you . Singapore is very much at the front and center. Also it reflects the whole region. Because it is so central to shipping, singapore stretches the sentiment everywhere across the region and they are a very practiced government, so i think it debuts extreme measures. It was the first government to come so soon after the virus news, so it is not as though they have change their schedule but that they arc right proactive they are quite proactive. Matt youve got also a Turkish Central Bank decision coming today and movement in the turkish lira. What are you expecting . Banke turkish central impressively got away with quite an extraordinary round of easing last year and i would not have anticipated it. Again today, the general anticipation is that they cut rates for 50 basis points, but theres a lot of variability in the forecast. I think that in an environment where u. S. Treasury yields are heading down toward these all twoyear lows and generally, we see global yields come much lower, turkey can get away with easing aggressively. The problem is inside environment changes, you will see turkish lira we can aggressively if you get into a more risk off environment or an environment where global yields kind of move up at a regal pace. That is when the turkish lira will really be vulnerable. Matt it is interesting because earning an did anticipate this erdogan did anticipate this. Everyone thought he was nuts. He brought inflation down with forced cuts. It does not seem to go in line with econ 101, does it . The question of the day, what does a ushaped or vshaped china path mean . What are you expecting . This idea that the markets have become obsessed with eu shapes versus vshaped or, of course, this a shaped or lshaped recovery. Is economic damage permanent, or is it temporary . Gettingmany people are very consumed, but even if you resolve discretion and do some complex economic analysis, it is not clear how you would actually change your portfolio allocation. Perhaps more important for asset policyion is the reaction, so if you notice the Economic Outlook being more severe or maybe over and rinse around the world during more aggressive easing, maybe it is a sign china will have a more severe aggressive downturn in the next few months. Ratesd might cut aggressively. Overall, i think the economic path of china is not only one part of the picture, perhaps a minor part of the picture, but investors are getting worried the economic damage might be more sustainable, might be more longterm, but we will have to see the official data over time and how that communicates through onepage emails onto the policy side. Mark thank you for joining us, our bloomberg mliv economic manager live out of singapore. You can join bloomberg on the question of the day what does a u or vshaped china path mean . Tell us what you expect there, a lot of questions about what type of recovery, if any, we should be looking for. Reach out to us on your bloomberg terminal to take part in that conversation. Up next, we take a look at the stocks to watch this morning, including Deutsche Telekom. The german phone company expecting operating income to rise again this year as it edges closer to a landmark wireless tmobileits u. S. Unit, u. S. Remember, Bloomberg Radio is live on your mobile device for Digital Radio and the london area. Tune in. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open right now, about 50 minutes away from the start of cash Equities Trading and looking at green arrows across the European Equity index futures. On optimism, we will get more stimulus out of china to recover from the coronavirus. Lets get to bloombergs first word news. Thea in the u. K. , government will end what it calls the nations dependence on cheap or low Skilled Labor and a new immigration system will come into effect for january 2021. Skilled workers must speak english. That is part of the governments pledge to end freedom of movement from the eu after brexit. Hong kong is headed for its first backtoback annual recession as the coronavirus cripples an economy already battered by months of political unrest. Economists forecast a contraction a more than 1 this year, following a 1. 2 decline from 2019. It would mark a slower recovery than from the sars outbreak. Singapores budget will provide a fairly large fiscal boosted to the economy as it works to counter the impact of the coronavirus according to the countrys deputy Prime Minister and finance minister. He and Virus Outbreak. Economies already in trouble after the slowdown in this Virus Outbreak will have a fairly negative impact on the Global Economy as well, on the singapore economy. Laura trump the fire has announced a new set of clemencys and pardons, including a financier who was convicted of securities fraud and a former illinois governor who was convicted of corruption and trying to sell former president Barack Obamas vacated senate seat, but President Trump said his 14year sentence was too harsh. This is bloomberg. Matt . Matt thanks very much. Laura with your first word news. Lets get to your stocks to watch around the newsroom. Dani burger looking at renault for us. Lets kick it off with you. What is the story with the carmaker . Dani rough run for the carmaker. Moodys cut their rating on the company yesterday, putting their corporate debt at junk, so now it is just one below Investment Grade. They are looking at sales falling 16 , and they say that given the companys outlook, it looks like their margins will not improve significantly in the midterm. I should say s p still maintains their Investment Grade rating, but again, thats just another piece of poor news for the carmaker. Telekom, this story, i have to say, i started my professional career covering bn ina reporter for frankfurt. There was already the talk of a possibility of a sprint deal. Now we see that finally coming to fruition. That is very much the key part of the story today. The wireless market is competitive and getting more competitive as well. The sprint deal, as you said, is the key part of the earnings and what will be driving shares this year. One thing to note as well is tmobile u. S. Is doing well itself, winning market share, so adding sprint to that should be good for the stop. Overall, numbers look pretty solid across the board. They are still optimistic about the outlook, but they have outperformed on Telecom Stocks already so far this year. Matt thanks very much for joining us. Get the latest stock stories by typing first go on your bloomberg terminal. You can also get it via the mobile app. I also want to point out iag, a stop to watch, the Airline Operator getting increased investment from Qatar Airways. Qatar increasing its stake to 25. 1 from 21. 4 percent, so a boost there. China. Up, could beijing be about to unleash billions of dollars more to support businesses . That is why we see futures up today, on that kind of optimism. Also, when you are traveling to work, tune into Bloomberg Radio. It is live on your mobile device. The citylso get it in on Digital Radio. This is bloomberg. Matt welcome back to Bloomberg Markets. This is the european open. We are a little over 40 minutes away from the start of cash Equities Trading. We do see gains in terms of futures both here in europe and in u. S. Futures on optimism that we will get more stimulus out of china. That as the death toll in that country rises past 2000. Despite Hubei Province reporting the lowest number of new cases of the coronavirus since it changed its methodology last week. Authorities considering more measures to support businesses such as direct cash infusions and mergers to bail out the countrys Airline Industry, and hong kong has reported its second death from the virus. The city bracing for its first backtoback annual recessions on record as the outbreak cripples an economy already battered by months of protests. Head of theow, the mea Equity Capital markets the head of em ea Equity Capital markets. Lets look at how the virus has impacted your universe. In some cases, like the csi 300, completely recovering losses since the virus was announced. I think investors generally have been willing to look through the issue and focus on central bank liquidity. Matt you have probably the biggest share of private in thers of any bank world. Are those High Net Worth individuals still optimistic that we could see more Profit Growth from a continued Economic Cycle here . Through this longrunning equity rally, the challenge for investors, both private individuals and institutions, has been to commit money into the equity markets. We have seen cash levels all the way through at quite high levels, and that is why these fallbacks are being seen as an opportunity to put money into highgrowth tech stocks. Got next week im going to to the super return conference in berlin. It is like to trillion in p d. Is there that much cash as well . Are the markets awash with cash everywhere . As we continue in this interestrate environment, there is a lot of cash on the sidelines. You are seeing Asset Allocation out of effectively negative Interest Rate yielding fixed income into the equity market and i think the private equity world has equally benefited from that. Matt do you see a recovery in the ipo market . We have seen some ipos that are very high profile very poorly. How does it look to you right now . Investors remained binary. If you can deliver strong dividend yield and deliver a very strong growth story, there is a strong amount of demand for that. Anything else we have seen over the last 18 months has been challenging to get price in this environment. Seen late Stage Tech Companies avoiding ipos . Are they staying with private placement . I think it depends which region you are in. If you focus on this time zone, you have a market that is relatively starved of good tech growth stories, so the ipo route remains positive and worthwhile globally, there is there more mandated money in the private space that are willing to take that route, but ultimately, it comes down to a choice from the issuer, and i think the stockspecific story. Matt what are the most exciting deals in your pipeline . Do you see more hesitancy to go from private to public and the u. S. And then you do here . I think the time zone has some difference. There is no doubt about that with the underlying market. I think encouraging for issue is, the ipo route represented Good Opportunity for exit, but this story is about competing the private space where there is a lot of money on the sidelines, and lot of money in private equities. They are cherry picking a lot of these assets and taking them into private hands, and the other side of the competition is a public equity market that is interested in tech, interested in growth, and you have some very attractive multiples to compare to. Matt it does not seem like there is much of a virus effect on what you oversee on a daily basis. The ipo story, the convertible bond story, it is more about then it isaybe trade about i think that is right. We have a very seasonal business and reality is we are about to see the ipo season open. What we have seen to date i think is a block market that has , blown upy active readily by the Investor Base, and really, investors wanting to put money into the market, struggling for ideas and the secondary market and using blocks as a way of finding liquidity and putting money to work. Matt we have seen some stories recently, how are investors looking at it . It seems like from the press coverage ive seen on convertible debt, they have gotten a lot of positive looks. From an insurance perspective, particularly if you think at where equity reference levels are, we are very attractive. From the buyer base, they have had almost a scarcity of supply, and if you bring good quality credit to the market, you will have a good response. Matt absolutely. We are going to keep you with us. The head of ema the head of emea ecm. Goldman sachs losing staff overseeing 10 billion in assets to rival banks. Ubs is one of them. It has poached a team that manages 6 billion worth. Another which looks after about 4 billion with is leaving for public. Our chief finance editor joins us to talk a little more about this. When i talked to guests, especially when i talk to their pr people, this is the kind of thing people in the industry are whispering about a lot. Absolutely. Especially in the Wealth Management space, this is an area where everybody, not just Goldman Sachs, not just ubs, everybody sees it as an increasingly core part of their business and an increasing profit driver because so many other pieces of the business, the prophet stories have been somewhat questionable. Matt it is hard to make money anywhere else. We see everybody diving into Wealth Management, notably Goldman Sachs. Matt why i mean, Goldman Sachs is at least in new york, the pinnacle of the industry. Why are they leaving Goldman Sachs to go to other places . Are they not getting paid enough . Is the pantry not very nice . Must be the pantry. Obviously, it has to do with whatever money they were making in whatever piece of the pie they will be taking home. Again, unlike, lets say, in dealmaking, you know, wealthy people, people whose money the potential customer base, they dont follow the brand necessarily. They follow their Relationship Manager. If their Relationship Manager goes from here to there, then the Goldman Sachs cachet does not have as much power as it might to a Company Going public wanting to do a deal. Matt right, High Net Worth individual, and that is why it is a problem for them. Right. Matt i think that was one of the primary concerns, when he leaves credit suisse, that is why they had him watched because they do not want him taking any more business. They dont want him poaching their Relationship Managers. That was the heart of it. Matt thanks so much. This is a story we will obviously continue to cover. Our Senior Finance editor here in london. A surprise bid for a rival has launched one of the biggest european banking deals in a decade. A lot going on in this industry. Will it mark the start of an m a spree in the sector . Remember, Bloomberg Radio is live on your mobile device and the london city area. Tune in. This is bloomberg. Matt welcome back to Bloomberg Markets. Just 30 minutes to go until the start of cash equity trading across europe. You can see we have green arrows optimismof futures, so about the possibility of more coronaviruspite the is really helping the equity trade. It looks like it will help us get