Of tech trade war, while the streaming giant netflix misses estimates. Welcome to surveillance. I am yousef gamal eldin in dubai. Assetse risk eye firmly bid, the state of play of the s p 500 currently called substantially higher after of course the earnings picture continues to fill overnight, including from netflix, which came through with a miss. Latest lawsuit and the uncertainty in stride. U. S. 10year finally Getting Movement in the last 10 hours. We are at 81 bits, and the selloff really taking a little bit of momentum over the last few hours. Behold yield curve beyond five years is trading at four month highs. It is not a volatile rising bond yields. It is doing nothing to help the dollar, though. On the currency note, you have traders testing the chinese governments tolerance for a strong yuan. A major move in the u. S. Fx space keeps rallying, no matter what officials you doing. Gold getting a list as well, up. 7 . Keep an eye on that trade is what Billionaire Hedge Fund manager john paulson is saying. Lets get to the bloomberg first word news with you to round out the picture with leighann gerrans. Hi, leighann. You. Ann good morning to significant antitrust action against an american company. Google controls about 90 of the Search Market in the u. S. The doj says that blocks a talent gateway to the internet. The u. S. Is accusing google of using exclusive deals to smother competition from rivals. We think this case is deeply flawed. We compete vigorously in the market space. Falling,s are free, and those are hallmarks of a competitive industry. Leighann the u. S. And eu are overng for a clash preferred candidates to lead the wto. Observers believe the Trump Administration is leaning toward the other candidate, south koreas candidate. The other preferences not yet clear. Saudi arabias crown prince is being sued in the u. S. Over the killing of journalist jamal khashoggi. Prince Mohammed Bin Salman and 20 others are named in the complaint. Khashoggi was killed by saudi agents in 2018. Crown prince mohamed denies any involvement but accepts as the de facto leader. City,s most populous officials are imposing a 24hour curfew following protests over police brutality. A Nigerian Health officials is at least two officials were shot dead, adding to at least two other deaths across the country yesterday. 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. Yousef . Yousef thank you so much. Lets get to the u. S. , because the country may be edging closer to a stimulus deal. House Speaker Nancy Pelosi says she is hopeful that an agreement can be reached at this week. That timeframe would be crucial for getting a bill passed by election day. Senate Majority Leader Mitch Mcconnell has weighed in. Pelosi told bloomberg progress is being made. Speaker pelosi we all want to get an agreement, because people need it, and it is urgent, and our economy needs it. We had one little bump in the road with the appropriations committee, they are not sure they are going to be ready, but lets hope they are. We are starting to write the bill, and then we can have the negotiation, but i am optimistic. Is seemaoining us now shah. They may be getting ahead of themselves. Are you on the same page . Seema good morning. I think i am on the same page, despite the optimistic tone that gives, it looks unlikely to me that we will see the factors. In terms of market expectations, they are anticipating something, at least in the next few months, and with that, i would agree. I think come january or february, you will see a leaning toward a fiscal stimulus package, and i think that is what is keeping the sentiment pretty positive. An early stageat of a new cycle . Are saying we will get a new cycle in the united states, a new cycle where you have a generation of pivots fiscalfiscal stimulus, stimulus after fiscal stimulus, already assisting stressed monetary policy. Seema i think that would have been the hope, that we would see that additional focus on fiscal policy, which is sustained. Certainly from Central Banks in the last few weeks, you know, as they call for additional fiscal policy measures, i think what they are saying as they are out of tools. Unfortunately, we cannot also ignore the levels of debt that have been run up across countries around the world, so it will be really difficult for governments to keep introducing new fiscal stimulus deals, and i think what we see in congress if the blueprint of the kind of debate we will see going into 2021, not just in the u. S. , but across europe and other countries, too. Yousef for all the talk around uncertainty about the outcome of the u. S. Election, the vix picture is very interesting, and we have, of course, the additional picture for our clients. This is the story of the currency rate at the 29 handle, november and december vix futures, the november vix was about 32. Are you also increasingly confident that we are going to get a clear result, come november 3 . Seema i think we may. Look at the polls. The polls are giving us a clear indication of who is going to be in the white house. But there is uncertainty around the congressional lessons. Who is going to win the senate . The majority of polls say it will be democratic lead, but it is a very small margin. I think the chances of continued uncertaintys election, i think there is a fairly high chance of that. Investors need to consider that. Having considered that, our advice is ignore the election noise, come january and february, the markets will forget the election, and they will focus on the fundamentals, which will be essentially the pandemic and centralbank policy. Tosef seema, we have a lot talk about. Fascinating conversation. Seema shah from Principal Global Investors stays with us. Here is what is in the pipeline, the subscriber Party Netflix slumped, fewer subscribers than expected. We will break that down next. The higher tensions between the u. S. And china as well. This is bloomberg. Yousef economics, finance, politics. This is bloomberg surveillance. I am yousef gamal eldin in dubai. Trying to contain the coronavirus in the united kingdom, going to enter the highest virus level, so there will be a Key Development to factor in the coming hours as we try to get a bigger sure better picture of how the government goes about this broader mention. Lets get to the Bloomberg Business flash with leighann gerrans. Leighann hi, yousef. Netflix is the outlook for consumer growth has improved. The Worlds Largest food and Beverage Companies forecasting organic sales growth of about 3 this year. An increase in pet ownership is also driving sales of nestles pet care products. Increasing at its london home, after two employees tested positive for covid19. These latest cases are a setback for the bank as it tries to return offices, almost 30 of workers in the u. K. Are now back. In new york, about 30 are now rotating through the office. And snapchat surged more than 20 yesterday, after reporting tough estimates. The company had previously warned that the pandemic would the company, with losing money from the lack of big movie launches, but the slowdown never actually happened. The lack of new tv and movies only meant more people were turning to the app. And that is your Bloomberg Business flash. Yousef . Yousef thank you very much. Lets talk about netflix. To the streaming driver maintain growth, 2. 2 million in the third quarter, about one million short of what analysts were expecting, following the strongest first half of a year ever. The company had warned the pandemic boom would not last. Still with us is seema shah from Principal Global Investors. Let me get an initial reaction from you on these netflix numbers. Seema i think this is, you know, what we are seeing, given the incredible performance that they had this year, and not just this year, but even going back the past decade, is that you have earnings expectations extremely high. So it is getting more and more difficult for tech firms to meet these High Expectations having said that, you know, some of the larger ones, such as the apples of this world and googles, they continue to do well. We have got continued confidence in the mega cap space, but it does not mean that they are completely bulletproof. About this latest move from u. S. Regulators to try and rain and what they describe as monolithic practices by google . Is this an inflection point, perhaps, and a bit of a reminder that what we saw with ibm and microsoft decades prior could play out here . Seema well, i think this has largely been anticipated by markets. We have known for a few weeks there was going to be some kind of antitrust move against google within the coming weeks, so i think that is not new. The thing i think that has taken markets by surprise as it seems Like Congress and generally various administrations are upping the ante against big tech. As i said, the big tex sector is sector is noth bulletproof, regulation, taxation, all the Things Congress can use against them, but we are measuring this in terms of years, not months. I think the future is still solid for mega cap tech. Yousef there is a fascinating column written this morning on the bloomberg that is titled everything is too expensive and nothing can be done. What are you telling clients in terms of adjusting their portfolios . It is such anook, interesting article. What we have been thinking about more and more over the last couple of weeks is it is almost as if the market does not care about either fundamentals or valuations. You know, valuations are extremely stretched. The fundamentals there is a considerable distance between the valuations, of course, and the underlying fundamentals of the economy. What does that mean to investors and how they should position . We still focus we think there is an economic recovery. We think it will be long, it will be protracted, there will inevitably be potholes, but we do think it will be there. At the same time, Central Banks have been the main driver of the markets over the last six months. They are Still Standing behind markets. There is a huge wall of liquidities fill in helping capital markets, so with that in mind, we do think that a correction is unlikely at this stage, so it means still risk on. Given that uncertain environment, you need some kind of defensive positioning. We like mega cap tech as i said, for the next couple of quarters, it should be relatively safe. Yousef we will see how it plays out, seema. I always appreciate having you on the program. Seema shah, chief strategist at Principal Global Investors. Anna edwards will be speaking. That is next. From dubai to the rest of the world, this is bloomberg. World, this is bloomberg. Anna you are watching bloomberg surveillance. I am anna edwards in london. The greek Prime Minister greater restrictions on manchester. And Prime MinisterBoris Johnson said there will be repercussions if we do not act. Yorkshire has also been moved into the highest tier for england. Lots to talk about their and also brexit. Please welcome to the program nadhim zahawi, business minister. Thank you so much for joining us. If i could start on the subject of the virus, because we had plenty of news lines around that, can you confirm before we knew that the government was trying to reach regionally, is that formula working . Well, i certainly pay tribute to the mayor, dan jarvis today has been reporting in south yorkshire, as well as hope that we can agree with Greater Manchester that we can provide the 60 million on offer to them. The allocation of funding is twothirds of wages for those people who are asked to stay at home, will be paid by 3000 poundsnt, after a close as well. So it is a big package. We are already at 200 billion pounds of, you know, wrapping our arms around the economy, as the Prime Minister quite rightly reminds us. And you see some of the borrowing members to date. They are putting an incredible amount of money. Italy and spain and others. Anna can i ask you, do you think there is any reason to increase the amount of funding to businesses, particularly where they are not forced to close, but demand levels have been hit usually by moving into tier 2 . Is there something coming for tier 2 businesses . Mr. Zahawi look, we have already made provisions, because a new scheme that comes to replace the further scheme, which comes at the end of this month, will effectively allow businesses to keep their people parttime, if, you know, trade is reduced because of the, you know, interventions we are making, where the government salaries, and the employee obviously pays onethird, and it will be topped off by universal credit. So a Single Person living in a, you know, onebedroom flat on National Living wage would see pretty much 93rd percent 93 of their ways coming through still. Anna if there no plan to change funding for tier 2 or the funding plans around tier 3 . Mr. Zahawi the funding plans have been accepted by dan jarvis in the ship filled city region and other areas. Of helpvery big package for businesses, for the employees and employers. We review all of our interventions, anna. When we entered this pandemic in march, we listened to business, the furlough scheme, we extended it to the end of october. We made it more flexible. We introduced the coronavirus interruption scheme and introduced a larger one for businesses that were sort of falling between the gaps of the scheme of the bank of england scheme. Cl bill we continually review our interventions in the economy, and we want to make sure that we get them right. I talked to businesses every single day anna on that subject, yes, let me hear you about brexit, because we are hearing lines this morning from michel barnier, just as our speaking and talking a lot about compromising, about the need to balance compromise, referencing the sovereignty of the u. K. I wonder if this is the language the u. K. Government is looking forward to take the conversation further on brexit . Mr. Zahawi well, i have not yet seen Michel Barniers comments, but from what i am hearing from you, it sounds incredibly positive, that he is talking about the sovereignty of the united kingdom, and we have always entered these negotiations on the sort of prerequisite, which is only fair and right that we are treated as a sovereign and that we negotiate as an independent, sovereign nation paired we wanted a canadastyle deal, which we think is doable. , asdoor remains ajar michael day would say come over the weekend, to further listen to the eu and what they have to say on this. ,he difficulty we have to say he was right to ask, as i am now doing on your program, for us to start or accelerate, i should business,rations with for the first of january, 75 days or so left now. Keep because we cant business hanging online, and on the first of january, you know, we will be after the single market. Anna a logic prepare for. Thank you so much. I am sorry, we are up against a break, business minister for the u. K. , nadhim zahawi. This is surveillance. This is bloomberg. Dani welcome to bloomberg etf iq europe. Im dani burger. We will be your guide to the regions up a Thriving Market and Exchange Traded funds. Everything you need to know about the funds and the flows. 460 billion of inflows. We will ask if the u. S. Eat the u. S. Etf market buffer growth will continue regardless of whether there is a democrat or republican in the white house next year. 95 oft big thing Institutional Investors say fixed income market is ready for the quant treatment. We will discuss a new way to buy bonds. If y a s