Global infections exceed 30 million. Saudi oil minister says, make my day, and a warning, he says whoever gambles in this market will be ouching like hell. Good morning. 6 00 a. M. In london. We have breaking news, caution to buy bankia. They see a completion of the merger in the First Quarter of 2021. A number of headlines are breaking, and they will do that, we will have an update on that. Sentiment to the downside, relatively flat across asian equities. Msci asiapacific up 0. 3 . Tencent down 1. 5 , under pressure from the Trump Administration, looking into Data Security concerns. They have large stakes in these gaining companies. Lets see what is going on across assets. Brent crude up 0. 7 . Barrel, getting a boost from the Saudi Oil Minister. It was a public dressing down of cheaters, and a blunt message to the market to not bet against the cartel. Nothing really happening in the bond market. More confidentng in its alliance with oracle. Beijing has asserted its right to block the sale of critical technologies, it is likely to greenlight this deal if it does not include the transfer of the app, algorithms. What would it take for this deal to go through . Getette we are starting to all the pieces of the puzzle, but the key piece is whether or not President Trump will approve this. They are getting confident that chinese regulators will give the green light to the deal. It is dependent on those factors you mentioned, as long as it does not involve Artificial Intelligence algorithms that drive tiktoks service. Oracle has agreed to Steve Mnuchins new terms that address these security concerns. We need the backing of President Trump. We have heard from mike pompeo who said he is close to backing the deal, which is an indication the president will give a goahead. What is also interesting is that oracle ceo, larry ellison, is a known trump supporter. He held a fundraiser for the president in february. Donated 130,000 to trumps reelection bid. Piece on the bloomberg saying this is how business is done in russia, not the United States. He writes that he can scarcely imagine a situation that is in greater violation of american capitalism. Annmarie tencent is also in focus. Protocols security involving tencent, the one that caught my eye, tencent owns a stake in epic, which has fortnight which a lot of people are obsessed with. What is the latest in this gaming saga . Asking forhey are movement on how these gaining companies are dealing with the privacy of american data. Owns the Los Angelesbased games, riot, which is the maker of fortnight. Says theyintelligence value the assets around 22 profit. 6 7 of that is why you are seeing a move downward in tencent in hong kong. They are down about 1. 5 in late trade, dragging on the hang seng tencentsrimming gains. It is another move as President Trump looks to crackdown on chinese tech. Juliette saly in singapore, thank you for your time. Emmanuel cau, head of European Equity strategy, Barclays Bank joins us this morning. Thank you for your time. Is there a risk we will see retaliation from beijing on u. S. Tech or u. S. Companies in general . It is not just huawei, wechat, it is now into gaming. Where else can we see this, and at what point do the chinese retaliate . Emmanuel good morning. Seen this strategic law between the china and the u. S. , and with the election we see a lot of noise. Not sure anyone has a strong , inrest to escalate particular from the u. S. I suspect there will be some status quo for the time being. , it will bece volatile in the coming months. 40 plus dayshave until the election. Will the biden strategy be different . Will we see a different approach to china and Tech Companies under joe biden . The democrats have a strong stance against china, so there is not much different between the democrats and republicans to contain china as much as they can. Cooperative more with europe. I think the u. S. Will try to create more consensus around the way to contain china, and rebalance trade away from them. This will be a central theme to the u. S. Election. Some part of the market already exposed to tech will be volatile. Annmarie do you think through bet prism, is it safer to on technology outside of the United States . A guest yesterday was bullish on tech all around, but said in emerging markets she likes tech because they are not against regulatory hurdles we could see in the United States as well as the backandforth between beijing and washington. Emmanuel absolutely. And there are signs of euphoria in tech driven by investment in in this using options part of the market. [indiscernible] as we have seen the last few days, we have some of the high profile stocks falling sharply. [indiscernible] we do like semiconductors in they arertly because less likely to be in this between the u. S. And china. Annmarie more broadly, there is a piece in Bloomberg Opinion that talks about the effect of fed support and how it may be fading. You think stocks are losing liquidity momentum . The strong liquid driven market, the bull market [indiscernible] tech is part of that. We seem to be seeing liquidity now where Central Banks are approaching the limit of their policies. The fed announced news this week, the market was somewhat disappointed, including the bond market. Annmarie you can never please some people. Im glad you brought up Central Banks. Stay with us to talk about that next. Lets get to the first word news. Laura the eus climate chief says green bonds create an opportunity for the bloc. They plan on selling as much as 225 billion euros of the debt. Soldhe Green Securities are likely to make the eu the largest issuer. You see blackrock making an enormous change into the green economy. If they wait for us to come out with green bonds to be part of that, i believe this is the moment to do this. Ura global Coronavirus Infections have topped 30 million. The u. S. And brazil with the highest number of cases. The World Health Organization is warning of a resurgence in europe, calling the recent rise a wakeup call. France reported the most new daily cases since the lockdown in may. Contracts based on californias water supply, the First Security of its kind in the u. S. Water supplies have been tight in recent years, and parts of asia and africa have potential problems. Two thirds of the world could face water shortage by 2025. 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. This is bloomberg. Annmarie i want to recap breaking news at the top of the hour. Bank they see this merger during the First Quarter of 2021. Approving this combination creates spains biggest lender as mergers accelerate among financial institutions. It is the biggest deal in spains Financial Sector in two decades. It adds more concerns the banking consolidation in europe. And will we start to see more of it . Saysg up next, britain there has been progress on eu freetrade deals. This is bloomberg. Annmarie good morning. This is bloomberg daybreak european open. Im hammer reporter and in london. Im Annmarie Hordern in london. Significant gaps remain on issues including fishing and state subsidies and European Commission president added to some optimism, saying she is convinced a deal is still possible. Emmanuel cau from barclays is still with us. The you think a deal is possible, and the ftse 100 is down 20 year to date and has not been able to wipe out the pandemic losses. Is it a buying opportunity on the ftse . Emmanuel i think it is possible. [indiscernible] we had the drama last year which ended well. This is the time for the eu and u. K. To agree on some things. It could pressure the currency and somewhat help the u. K. Onket because the ftse 100 the direction of the currency, and if we have a deal, which ,ould strengthen the currency that could somewhat help the u. K. Market. Within that we see domestic is a deal is done. For the time being, we see a volatile currency could help the ftse 100 to perform. If we get the deal in the end, that might reverse. Annmarie what is your outlook . Do they get a trade deal after all of this wrangling and back and forth between brussels and london . Isanuel i think a minideal the most likely. The government can reduce the economic shock, but on services you cannot kick the can down the road were not get something agreed on. , andght be a small deal there will be much more negotiation for many months or years to come. Yesterdaywe heard from the bank of england, the idea of negative Interest Rates is on the table. It was in the toolbox, now it looks like they will investigate it. The first port of call for their next move, or will he go for qe first . It depends on how quickly the deal we need to provide support to the u. K. Economy. It could open the door for the Central Banks. The option is on the table. Might be easier for the boe to justify. There will be more work to be done. U. K. Can prevent a messy shock from brexit, qe might be moreoft option for now than negative Interest Rates. Annmarie how much longer will it take before the u. S. Dollar curve rices in negative Interest Rates from the fed . Prices in negative Interest Rates from the fed . Arenuel im not sure they in the same situation. The fed needs to stay put because the u. S. Faces the upcoming election. If the economy were to suffer or take a hit from a messy try ton, the fed would keep the market and the economy afloat. Im not sure there is much for the fed to go into negative Interest Rates. Im not sure negative rates is what they will go for in the u. S. Remain. Dollar will under pressure because the fed. Ill keep providing liquidity , stayie emmanuel cau with us. Coming up, we will talk about concentration risks. Tech stocks are under pressure following a two days selloff. We discuss that next. This is bloomberg. Rates will remain accommodative until the economy as far along in its recovery. Inflation is expected to be contained over the medium term. Remaining globe remaining below close to the midpoint. With inflation running persistently below 2 , we will aim to achieve inflation moderately above 2 for some time so that inflation averages 2 over time, and longerterm Inflation Expectations remain anchored at 2 . Japans economy has started to pick up with Economic Activity resuming gradually. It has remained in a severe situation due to the impact of the coronavirus at home and abroad. We believe the policy guidance we are providing will serve the economy well by promoting our goals to the many possible paths the recovery may take. Morning, that was fed chair jay powell along with other central bankers around the world speaking over the past few days. A big week for Central Banks. In the markets, nasdaq futures are attempted to find their footing after the index started to climb in the past two sessions. Volatility highlights how vulnerable the market has become to wobbles in these megacap stocks. Digesting all this is dani burger. How severe is the concentration in the Technology Space . Dani it is very severe. It feels like we are having this conversation for the past two years. The concentration in the biggest stocks, the mega cap tech stocks is unprecedented. In global indexes, as of the 500, essentially all of the upside this year is due to the top 10 stocks. Without them, gains for the main indexes will be significantly less, same goes for europe. In can see the index does better than it would without the big 10 stocks. That blue bar on those charts is the big 10 contribution. It is big for all these indexes. When you look at the average performance, all of these have done well year to date, but the average is actually negative because of this concentration risk. People are waking up to this and realizing indexes are dominated by the mega cap stocks, we need to diversify beyond the indexes. We have seen equal weighted s p do better this month than the main index. Annmarie every morning we talk about what is the latest in the Financial Community and whether or not they will go back to the Kitchen Table or the office, and the latest seems to be there are step backs for some lenders. Walk us through who is going back to the office and who is being sent home. , ai Goldman Sachs this week trader contract the coronavirus, so they sent some of them home who may be exposed. Goldman was one of the most Aggressive Companies getting their workforce back. We saw barclays sending some traders home here in london. That is all well and good, people might want their bankers back, but it does not always work out. Annmarie it is something we will keep track of as we enter the winter. Many Health Officials are warning of a second wave. Thank you, dani burger. Coming up, warning shots from the kingdom. Saudi arabia is out at opecplus and shortsellers in a bid to protect the oil market. It was a blunt press conference. This morning, brent crude is up 33. 59. This is bloomberg. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Annmarie good morning from bloombergs European Headquarters in london. Im Annmarie Hordern. This is bloomberg daybreak european open. The Trump Administration asks skinning cubbies to provide information about their Data Security involving china giant, tencent. Is this the next catalyst for a tech selloff . Goldman sachs is the latest bank to send some traders home after an employee tested positive in the manhattan hq. Global covid infections exceed 30 million cases. The Saudi Oil Minister says, make my day, and a warning. He says whoever gambles on the market will be ouching like he ll. Good morning. It is friday, september 18. Flatarkets are relatively this morning. Msci asiapacific is up 0. 4 . It would be set for the first weekly gain. Tencent down after pressure from the Trump Administration looking into Data Security concerns. Euro stocks 50 flat. Brent getting a boost from the Saudi Oil Minister. Coming off of a low of initial drop when the boe talked about taking Interest Rates below zero. Lets get back to the oil market, oil climbing after saudi arabia expressed determination to stop opecplus members from exceeding their output quotas. Sent a warning to shortsellers. Take a listen, this was his answer to my question yesterday evening. We have decided to be proactive and preemptive. For those who would like to result,the market, as a make my day. Joining us now is will kennedy, bloombergs Senior Editor for commodities. It was an interesting opecplus press conference they gave, a bit lastminute. The prince was blunt and direct to the market, do not test us. This has risks, doesnt it . Will it does. The prints had a nice day the prince had a nice day and a market was impressed by his resolve to defend the price and his scolding of opec noncompliant is. Things will come into sharp focus and there are big challenges ahead. They have a meeting in december. Large cuts that they agreed to, putting two Million Barrels a day back into the market. It is not clear the market is ready to take those two Million Barrels. Demand has stagnated in several key markets. He is saying to the market, do not test me, but the key question in december is if he needs to keep more oil off the market, is russia going to stay with him . Other countries running financially, will they stay with him . He has a diplomatic challenge. At that last empress we sawlus meeting theatrics yesterday, and this is when the uae Oil Ministers flew to riyadh during a pandemic to sit with their saudi counterparts. This is because he has been cheating, but he is such an ally to the prince. The prince is doubling down on the cheaters, isnt he . Will it was the diplomatic equivalent of a public scolding. He did not mention the uae by name, but the minister was sitting next to him. Is usually their closest ally and opec and beyond. Are veryrown princes close. It is discomfort to saudi arabia that the uae was producing as much as it was. Level the prince made clear his anger, and you can understand why. If theiraudis, closest allies will not make cuts, what hope do they have for other c