For the entire day after its worst ever outage. The hardware breakdown is to blame. European leaders gather for a special summit in brussels. Relations with china and sanctions on belarus top the agenda. Isnt butecovery fund concerns linger. 9 00 in dubai. Good morning. The risks of a Government Shutdown have been taken off of the plate. I have the image in my head between nancy pelosi and mnuchin. It sounds like the white house is moving forward. Mitch mcconnell, are we closer to a deal . He says we are miles away. Annmarie he seems to be pouring cold water on that idea. The democrats did postpone that vote for the 2. 2 trillion. Maybe we can get something on foxbusiness. Obviously, you dont want to hold your breath. Already, strategists said that the growth for the year is going to be dim because of this. What im focused on is these job losses. Exploding. That is sounding an economic alarm of the real pain in the real economy, not the financial markets. Manus on the other side effect coin, we have bullard versus bargain. Bullard is breaking away from the peers. The economy is recovering faster than we expected. Bullard, hes saying the recovery is faster than expected. He has the contrary invoice. You can delay the stimulus. We can wait on fiscal stimulus. Potential for one of those fumbles in terms of a narrative from the fed which alleviates the pressure on the politicians. Good morning. Annmarie lets take a look at the markets. Futures higher. We dont have a lot of movement. Theres a number of holidays. Australian stocks are doing better. The focus is on the nikkei. It is changed right now. There is no trading. The exchange had an outage. Trading will be down for the entire day. Rollover the board. Dollar down across all of g10 this morning. Weakness against the yuan as well. That heightens how unlocked the ust is. Crude holding above 40 a barrel yesterday. We saw that stockpile data showing a surprise drop. Also, dollar weakness. I know you called the bond market a snooze fest. As we have been speaking about, tons of job losses. Tens of thousands. Disney announced it was slashing 28,000 roles. That was just the beginning of a painful 24 hours. Continental improved a plan that will affect 30,000 workers. Jobs. Te will cut 3000 800 Goldman Sachs plans to cut 400 jobs. The biggest losses came in the airline sector. American airlines and united announcing combined cuts of 32,000 employees. Those numbers are staggering. The decision ramps up the pressure on secretary mnuchin and House Speaker nancy pelosi. The haggling over 2. 2 trillion Economic Relief backed by the democrats. The house leaders have postponed that vote. They gives them more time to reach the elusive compromise. Our guest host. Everybody hopes theres a fiscal deal. Look at those job cuts that are coming down the pike. You start this Fourth Quarter. Can you really afford to start the Fourth Quarter without being fully engaged with risk . Is that a little too bullish a scenario to look at the next 30 days . Marija good morning. Im a strategist. Path for constructive risk assets in the mediumterm. Theres a lot of volatility. Theres a lot of politics. We have elections. We have the european summit. It will be choppy. Longerterm, the economy is recovering very slowly, very unevenly. We have very supportive monetary policy. I would be very surprised if we dont get another fiscal package. We probably would. It will be torturous to get it but we will get there. Theres lots of money on the sidelines. We know corporate have money. We know consumers have money. Factorsination of those makes me constructive on risk assets in the mediumterm. Annmarie when you say you are optimistic, are you optimistic about a fiscal package getting done in the next 48 hours . Or before the end of the year . Probably thenk latter. It is politics. House the white politics dominates economics and 48 hours. In mediumterm, you imagine there will be a package given the amount of suffering in the job market we are seeing. Want you to hold onto your tech calls. I know it will permeate throughout the next 30 minutes. Lets all take a breather. We know that. Good. Im glad that hasnt changed. We will come back to that in a moment. Lets talk about cyclicals. Given the progress stance you have, where do you want to be in terms of cyclicals . Weve had a couple people say they want to be longer on europe relative to the u. S. Does that work for you . Do you differentiate differently . Much. maybe not that what i do like encyclicals is materials. The material space is very interesting for us. That links to our previous discussion. We expect materials and the metals space, it comes from government spending. We see that in china. Things like chinese imports of metals, copper, aluminum is huge. We are seeing a lot of development there. In europe, a lot of infrastructure projects. Boris johnson was talking build, build. Thats his way of getting out of the pandemic and reengaging the economy. More comfortable area to belong. Stocks have gone up a bit more already. We expect that to continue. Stocksing material specifically. That is when we really like. Annmarie i know you prefer materials over energy. You still love the u. S. And em. With these jobs cups job cuts coming in the United States, do you think its time to start moving away . Marija no. Probably not. Manus already alluded to us. Of u. S. And part emerging markets indices. We expect a lot more strength there. Lesspect thats a lot affected by job cuts in the real economy. Thats part of the market brings its own thing, secular trends. Working from home and things like that. That will continue. Weve seen how those sectors have been i dont want to call it lockdown proof. It has been performing quite well. I suspect that will continue for some time. Marketll support that more than any other region. Annmarie our guest stays with us. A lot more coming up especially in tech calls. Lets get the first word news with laura wright. Laura european regulators are set to start an accelerated review of the Coronavirus Vaccine from Oxford University and astrazeneca. The rolling review allows regulators to see trial data while the government is still ongoing. Widened theors have investigation into the incident that led to a halt in the trial. The worst ever outage in japanese trading. The Tokyo Stock Exchange has stopped trading for the entire day, giving no timeframe for when trading can resume at the worlds thirdlargest spot. Buying and selling will be frozen on the first day of the new quarter. Previous outages only affected parts of the trading day. The format of the president ial debate is changing. Thats after the first chaotic clash between President Donald Trump and joe biden. The organizers say they want to provide a more orderly exchange of use. I didnt says candidates should be able to speak uninterrupted. The Trump Campaign says rule changes are moving the goal post. Global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. This is bloomberg. Manus thank you very much. European leaders meet in brussels amid growing concerns that the 750 billion Euro Recovery Fund could be delayed. We discussed. This is bloomberg. Manus this is bloomberg daybreak europe. Annmarie hordern alongside me in london. To europe and beyond. The leaders meet in brussels for a summit with the talks ranging from china to brexit. The meeting comes amid growing concerns that the 750 billion Euro Recovery Fund could be delayed. Stumblesation faces over the rule of law conditions. Maria tadeo tracks every nuance from brussels. Good to see you this morning. Where are we in terms of this Recovery Fund . I thought we were there. This is very europe. Maria [laughter] exactly. In market had already priced that we would be there by early 2021. That was the idea. The idea that the Recovery Fund would be operational by the start of the year. The commission would give you an upfront payment. By mid2021, the money would flow to countries that need that funding like italy. Its europe. We hear from officials that they feel the implementation would take longer than that because there are still issues that need to be resolved. A crucial issue here has to do with with rule of law. Youthinking here is that are the european union, you will give money out to a country like hungary, you have to have guarantees that they will respect fundamental democratic rights. Thats the concern here. They dont have the guarantees they need. I spoke with the commissioner who handles this issue. She told me the pressure on the money has to be there. We have to get guarantees. Lets take a look. Toi believe that we need increase the pressure also by means of money. Who will decide on the possible function . It will have to be very well based on thorough analysis. That was the commissioner speaking to us yesterday. One issue, we have rule of law. We have money. We have guarantees. The European Parliament would like to question the numbers here. They dont have a deal yet. What they think the Recovery Fund should work going forward. Those issues mean theres a real risk that the Recovery Fund wont be operational. China . E what about that seems to be top of the agenda today. Are there more restrictions to come with Chinese Investment into europe . Maria thats a good point. What we know at this point is that come friday, european leaders will very likely say in an official way that the relationship with china has to be recalibrated and rebalanced. Thats a very clear goal now from the eu. It will be done. The 27th saying that tomorrow morning the key here is not just the language. But whether or not we will see more restrictions and whether we will see the european regulator allow more m a between European Companies to create the champions that politicians say we need. Annmarie we will be tracking the special summit throughout the day. Thank you so much. Great reporting and fantastic interviews. The imf says spains recovery is under threat because of a second wave of infections. The government should not remove fiscal support too early. Spain prepares new targeted restrictions and hotspots such as madrid. Spain had the highest number of cases in europe. Our guest is still with us this morning. We had a special summit in brussels. Its not the agenda. The Recovery Fund and whether it is on shaking ground will set a gloomy backdrop to this meeting. Where do you see this . In markets have priced this already. Point in whaty you said is fudge. Thats what happens in europe. Expectations are high. There are hiccups. Thats my expectation. Torturousve a very few days, weeks, months. We know that money is needed and earmarked. Eventually, it will find its way to the economy. It wont be an easy path. Its usually a lot more difficult in europe than thehere else, given commissions, lots of countries. It will be difficult. It is a step in the right direction. Markets really cheered the package. Its a great step forward. Justll eventually we have to get through a few difficult weeks and months. Manus it will be a bumpy ride. A brief thought. I know annmarie wants to get into the stock story. Any thoughts on Christine Lagardes lean towards average inflation targeting . Would it mean anything substantial to you if the ecb mimicked the fed . Lagarde,or christine for the ecb, it would be aspirational targets. European inflation has been below target for a long time. We will see weakness right now as well. Probably mores signaling. Im not entirely sure how much. Questioning credibility. In europe, you will get more of that as well. Think the ecb is trying to provide a lot of support. They signaled they can do more. They desperately need fiscal spending. For me, the rescue package is a lot more significant than whether it can be pushed through. I suspect it will be. How much work needs to be done to get it through is more important. Annmarie very quickly. Story, all the gains to the stoxx 600 this entire century has been from dividends. Without that, you could see real losses in the ftse market. Is it time to take money off of the table in europe . Say, we havee to been fairly negative on european stocks for quite a while. For me, the key chart in europe is revenues in europe relative to the rest of the world. Years, downward sloping line. The point you are making is that revenue in europe, earnings in europe are substandard. The companies are paying dividends. Thats it really. With dividends being removed, its a more difficult story. Yes, we are very skeptical. Manus ok. We can come back to the skepticism on the u. K. This is our guest host this morning. Coming up, more on tokyos trading halt. A system issue blamed for shutting down the worlds thirdlargest exchange. This is bloomberg. Annmarie good morning. Exchange isock helping trading for the entire day after the worst breakdown it has ever suffered. The trade freezing on the first day of the new quarter, dampening investor sentiment. Start of the golden in china. Juliette saly joins us. What is the play in tokyo . What do we know . Had this happen before. Juliette this is the worst halt weve seen in its history. Weve heard from Japan Exchange which runs Tokyo Stock Exchange. They will try to resume trading tomorrow. They are saying it is a hardware problem. Trying to make sure that people dont think it is a cybersecurity attack. Investor sentiment is on edge after we saw hacking affect the new zealand stock market in august. The Stock Exchange buying and selling thousands of shares. We have been seeing some movement and derivatives including futures. Other markets in the country including exchanges are also sustaining trading. This is coming on the day that investors were supposed to react to the survey that came out 10 minutes before the market was expected to open. Showing an uptick in the Large Manufacturing sentiment. Still well off of prepandemic levels. This is going to affect investor confidence. Weve heard from a strategist at tokyo security saying this is very problematic. Investor confidence gets impacted. You could see some negative reaction in japanese stocks. Much. Thank you very lets see whether they can get us up and running by tomorrow. Our guest host this morning. Lets focus in on japan. We are getting ready for sue get. We understand that it will be a mirror of phnom x. Worth of japanese stocks. Triple the level of the boj intervention. How do you look at japan and the prospect of suga . Marija for us, its not just for japan. For Overall Investment this year, it has been all about earnings. Earnings have been fairly not strong. None of the region has strong earnings. Relatively resilient. They have performed well. Reallys will have been bad in places like u. K. And japan. They struggled. For we really want to see us to get positive on the markets is some optimism on earnings. We look at earnings forecast, earnings expectations. They are quite negative and japan. Politics. What we need to get, better earnings outlook. Japan is still struggling. For us, it is delano. Still a no. Annmarie there are still more pessimists than optimists. You are a pessimist on japan. Outside japan, you like e. M. You like tech. What other sectors in asia . Asia, it is mostly tech. Asian tech, we like that a lot. Thats a very interesting story for us. We suspect we know that investors have been super bullish on u. S. Tech. We know it is very crowded. You can argue about valuation. It is quite stretch. I suspect that that case is probably less extended for asian tech. We know it had some setbacks with u. S. China trade war, u. S. Trying to pressure chinese text out of the market. We suspect it is less crowded, less extended. I would like to venture a guess that Chinese Government is more likely to have its technology champion. There is an interesting story there. Asian tech is very positive. Semiconductor story. We like platforms. You are pouring into our obsession with bifurcated tech between washington and beijing. Up next, we look at whats going on in the United States. Dividend and buyback limits extended by the fed. Stay with us. This is bloomberg. Annmarie 30 a. M. In the city of london. Good morning. This is daybreak europe. Tens of thousands of job cuts and no fiscal support. American airlines and united laying off 32,000 people. Steve mnuchin and nancy pelosi are still talking about stimulus relief. Japan trading on hold. The Fourth Quarter begins with a major outage. The Tokyo Stock Exchange is shut down with all trades frozen and much of asia also shut for holidays. For aan leaders gather special summit in brussels. Relations with china and sanctions on belarus are on the agenda. Isnt Recovery Fund you refocus [indiscernible] lots to digest. Asia is pretty much flat given that we have this outage in tokyo. There are a lot of holidays on a number of exchanges. It is these job cuts for me. Tens of thousands of job cuts. People are going to start seeing even more suffering. All of this just within 24 hours. Manus yes, there are some of the numbers. Potentially 30,000 people. I think if you look at the past 24 hours, you differentiate between political chaos of yesterday morning when we came to air and this morning with the market has bid on is really on the veracity of a fiscal deal. Of fiscaltina difference between the republicans and the democrats closing in if the concertina market therefore the market can start with a certain amount of underpinning. Asmarie one thing for sure many will say this is crunch time for the stimulus deal. Many were saying october 1 was going to really need to be the date to head because of what is going on with the airlines, but remember july, the 600 stimulus checks also never got a fresh start. So, it is 24 hour crunch time. All of these job losses, no fiscal deal all and we are 33 days ahead of the u. S. Election. Manus lets put it into risk pe