10ly plans on spending billion euros a month. Biden uses his first call with Boris Johnson to reaffirm his support for the good friday agreements. A lot to talk about this morning. Under one hour until the start of the European Equity trading session, futures look flat. Ftse futures, dax futures, a bit of a mix. Yesterday europe was up strongly 1. 5 or more on the major markets by the close. We come into today with a continuation of themes of the previous day, selling out on tech, getting back to value. Lets get to u. S. Futures, looking more buoyant and having to do with what we did not see in the u. S. Session yesterday. Things are not as strong across the board. Nasdaq down by 0. 3 . U. S. Futures looking have we seen that rotation playing out in terms of the tech versus value story . It is in play in asia. It is inch deceit a japanese equity market doing well. See the interesting to japanese equity market doing well. Part of this has to do with what is going on in tech, a crackdown on mono ballistic practice in practicemonopolistic in china. The u. S. Dollar weaker, the new Zealand Dollar paring back. No cash treasuries today, it is veterans day. Oil continues to make gains. We will keep an eye on the oil price. Alibaba has kicked off singles day, the worlds biggest shopping spree that will gauge the strength of chinas recovery. The strong sales are overshadowed by a tech selloff. Lets get to the markets with mark renfield who joins us from singapore. I am looking at incredible oneday moves on the tech names in china, down by singledigit percentages, sizable ones. What is the backstory . Investors did not see the extent of this coming . No, it is a surprise to some people, chinese authorities have decided they want to rein in major players. Ofcent and alibaba are two the Huge Companies operating in china, and there shares are to the downside today. Listings on the Hong Kong Market have helped to keep the hang seng under pe. Is down kong tech index more than 5 , which is remarkable. It is a decent day for the nasdaq. The underlying story is that some Major Companies are trying to get into the Banking Sector through the back door. They are lending to small and mediumsize companies and individuals without going through the usual procedures they need to. China figured they need to rein that in. Internetbased companies. That is part of the reason the ant ipo was stopped by chinese authorities. They are trying to bring full control of the Credit Sector back under the authorities in china. You are seeing a big selloff in tech stocks because of that. Anna shadow banking is something china has wrestled with for many years. This is a different flavor of shadow banking coming from a different place. Let me ask you the question of the day, i was looking at the oil price that is continuing to , Oil Prices Continue to pick up. We are not back to march levels . I am wondering what you are hearing when you ask this question today . Are saying of people until you see a more sustained Global Economic breakthrough, it will be tough for oil to get anywhere close to where was. Although asia is reasonably open, though travel you cannot travel where you like but the economies are doing fairly well. That is not the case in europe and the united states. While people are stuck at home under lockdowns, business restricted, none of these are favorable for oil. There is not a lot of agreement among the countries for how much they should be dumping. Demand is below the levels opec would like, and they are not united. The whole picture is not conducive to oil staying strong for long. There may be sporadic rallies, but it will be sometime before oil prices sustain prices we saw at the beginning of the year. Anna european stocks look flat, looking for momentum, perhaps that will not come from the big story, the agreement around the european budget. What are you looking for next in terms of adding momentum back into the markets . Mark it looks as though we are heading toward the central banks. Christine lagarde does speak today, and we had one of the spanish central banker speaking today saying the ecb needs to address deflation. That is another way of saying they would like more easing or bond buying, something along those lines. When we do not get enough in terms of fiscal policy or there are locked downs, we go down to the central bank. The ecb needs to come up with something. Maybe well get something today what they will do in december to help out. Also a spike in bond yields the ecb may not be keen to see that is caused by new zealand withholding rates today. There is uncertainty in the bond markets that will cause distress in europe. We will be looking toward Christine Lagarde to calm everything down and reassure them she will do what she needs to to keep everything on track. Anna thank you so much, Mark Cranfield joining us from singapore. 53 minutes until the start of the trading day. Laura joe biden uses his first News Conference as president elect to criticize Donald Trumps refusal to concede the election. Haydn says he is moving forward despite legal challenges from republicans and lack of cooperation from the white house. I think it is an embarrassment. And frankly the only thing how can i say this . Not help the will president s legacy. Laura italy may need to spend 10 billion euros a month and virus a. The lockdown measures are estimated to cost the government 3 of italys gdp if they last until march. The aid bill will be 6 billion euros a month. The u. K. Is planning sweeping powers to intervene in foreign takeovers it deems a threat to national security, that includes retroactive action on deals completed after the bills publication. That is the controversial instance, but the u. K. Is with similar roles with france, germany, and italy. 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. This is bloomberg. Rotation. Ext, risk on we will talk about the move out of defense of tech names. If you are waking up in london, this is the sky that will greet you on november 11. This is bloomberg. Anna welcome back to Bloomberg Markets european open. Lets look at the European Equity markets. Futures fairly mixed for london, perhaps more momentum than a halfhour ago. Euro stocks futures to the upside. S p futures up 0. 6 . Nasdaq futures ulcer moving up. The Chinese Market under pressure because of heavy selling in big tech names. Rotationthe regular connected to the virus. The story out of china is about regulation. Lets get a Bloomberg Business flash. Laura italian Payments Company is nearing a deal to buy its rival. The companies have agreed on details of the all stock transition. It is valued at 7. 8 billion euros. Owner is asking u. S. Courts to intervene to prevent the Trump Administration forcing a sale of the video app. Bytedance is asking for more time before it faces a ban. It plans to sell 20 of the entity. In the gaming sector, epic has won the dismissal of two apple claims on its app fornite. D new userse downloading it. The main fight goes on. That is your Bloomberg Business flash. Investors have been rotating out of defense of tech names into shares more exposed to Economic Growth. A new dimension is china. ,e are joined by nick nelson managing director hed of global European Equity strategy, ubs. Very good to speak to you. You have been looking in detail at european sectors and their response to the vaccine news. It seems that gap between stocks sensitive to the vaccine and stocks that are not closed substantially. Does that mean we have done a lot of pricing in the vaccine . Is there anymore we could do on this . It, yes, when you look at the case where we have seen going back to the market low around marchapril, we saw a surge in the percentage gap between the stoxx most sensitive stocks most sensitive. After the move this week, that gap has closed from 30 Percentage Points to 10 Percentage Points. Thirdsk we are about two the way through pricing in a vaccine. The news this week was positive, but there are more stages to go, more to do in terms of how the vaccine is approved and transported and administered. We are not out of the woods yet, and there is more to go as the vaccine gets priced. We took a big step forward in terms of pricing the vaccine. In particular on the day the news broke, we saw value outperform growth by nine Percentage Points in europe, a massive move. Anna it suggests in the markets mind, two thirds of the vaccine is worried about efficacy. And assuming other things take care of itself, the distribution. Does this limit the ability of the market to move further positive on vaccine news . Nick naturally as we go through the next stages, the approval is the next big move. It is not just pfizer, we have the oxford process and several others in phase three trials. Other vaccines should be focused on, the progress. It is not actually getting the vaccine and administering it. Once there is a working, effective, safe vaccine, it could change the behavior of governments. It could make Large National lockdowns across the u. K. And parts of europe, those could be less likely, and we could have a more targeted vaccine to those who need it, and health care workers. Then allow the rest of the economy to operate more normally. In terms of Economic Growth and corporate profits could be a big game changer. Consumers may well behave slightly differently if they know there is a safe and available vaccine, it may make them less fearful and riskaverse. They may travel more and spend more and enjoy leisure and restaurants. Just having the vaccine, even if you are not vaccinated, it will be helpful. Anna that is fascinating psychology. Let me ask what you see in value stocks . A lot of rotation and growth into value and banks and the like, some of that we have seen. Prepandemic we were talking whether it was time to get into value. Where do we stand on that conversation now . Nick it has been going a long time, more than a decade if you go past to the Global Financial crisis. In 2016 we had the trumpflation trade. Were have been periods are have seen that, but generally it has been brief. The underperformance has been stunning. Year to date in europe value is underperforming growth by 55 . That a percent move we have seen this week is a fraction of the underperformance this year, let alone going back previously. In the shirt torn, given in investorsterm, given positioning, most investors are there ist with growth, a possibility for this to move further in the near term. In the longerterm, it will depend on how effective the vaccine is, and more importantly, do we generate inflation . Can we see Interest Rates rising, yield curves steepening . Im not sure we can see that yet. Anna thank you very much. Stay with us, nick nelson, managing director head of global European Equity strategy, ubs. We have been talking about the vaccine. The Pfizer Vaccine is cooling down on stories of its deepfreeze storage spooking analysts. We will dive into how chinese tech is responding to the latest regulatory push in beijing. This is bloomberg. Anna welcome back to Bloomberg Markets european open. Is what we have in terms of futures, u. S. Futures point higher including nasdaq futures. Nasdaq in with the pack rather than going its own way, selling off as we have seen in the recent rally another stocks in response to vaccine news. Lets talk about tech. Nick nelson, managing director head of global European Equity strategy, ubs is still with us. Lets jump briefly to china. A lot of market moves we saw overnight are picking up on the global trends. There is another reason to sell tech in china having to do with the regulatory clampdown. How do you view that action by the Chinese Government . Part of aink it is broader process where big tech becomes superpowerful, operating in markets with duopolys and strong Pricing Power and market shares. Clearly at some point that will be an issue for regulators, whether chinese regulators, u. S. Regulars, or european regulators. The lens to look at it through, before the u. S. Elections we googleeing processes on in terms of market share and online advertising, and a u. S. Investigation into that. Big tech is a victim of its own success, with such large market shares. Regulation is may be struggling to keep up with advances we have seen in mega cap tech stocks. The threats of tax has been the case, talking about revenue companiesarge tech that make money across europe and the u. K. It does feel like there is a miss not just in china, but somewhere will get more regulation on large cap tech funds. Away from the chinese story, into the u. S. And european dynamic we have been covering, we see weakness in tech stocks now that futures look positive, which is a change. Where do you stand on tech given the work from home trend . Then the relatively small selloff, and where are we now as we pause for thought on this recent tech selloff . Nick we are affectively neutral when we look at tech across europe. Essentially it feels to us like it is a sector that has over the years done very well. As we move to a world where we see a gradual rise in Interest Rates, slightly higher discount rates, that might count against tech stock. We will have an opening of the economy and we may see more cyclical paths of the sectors, construction, rather than necessarily the tech sector. Is whereneutral stance we stand now, and bear in mind that may change with the interestrate backdrop. Anna if we are looking for further good news around vaccinations and the approval of vaccines or efficacy data on vaccine trials, where would you be looking . Which sector has not closed that gap from 30 to 10 as the average . Where are the sectors you would look to make further gains . Nick when you look statistically at the most sensitive, it is travel and leisure, commodities, the energy sector, the minors, the industrials and broader construction. All of those will move, that is what we have seen this week, a close relationship with that. Ones we feel have a positive consumersas we see recover, massive savings ratios in the europe and the u. K. , more confidence, we will see expenditure. The european area is producing evs transitioning from combustion actions to electric vehicles. And large tax breaks in germany around new electric vehicles for consumers. That may be is part of the market that will continue to do well. Anna thank you for your time, nick nelson, managing director head of global European Equity strategy, ubs. Up next, the euphoria around the withr vaccine, we discuss the ceo of airfinity. That is next. This is bloomberg. Anna welcome back to Bloomberg Markets european open. Toopean stock futures point the upside by 0. 1 percent. Thats get your morning call with dani burger. You have been looking at the calls coming in this morning. Dani it is all about the value rotation, the biggest debate on wall street. The question wall street analysts are debating is how longlasting is this value bounce . Goldman, barclays, they say this is a longterm rotation. Goldman points to the fact that the vaccine news fuels growth expectation, and when you get higher expectation, that can sustain a cyclical bounce. Our cleat says you have the biggest risks for the market gone, vaccine progress and the u. S. Election, and that will help the procyclical growth rotation. On the others of this we will see a shortterm tactical bounce. Those strategists include citi, ubs, they have a Common Thread in that we do not know what the future holds. There is so much macro uncertainty. It and Monetary Policy is not enough to sustain any value bounce. Bernstein says do not forget about growth. We have low yields that will be the case for some time and growth is attractive in that scenario. Anna thank you, dani burger on the value rotation. A lot of this is driven by the latest, the recent conversation driven by the latest news flow surrounding the vaccine. The covid crisis is inflicting lasting damage on the Global Economy and challenging decisionmakers to find new ways to track of elements. High frequency data is indispensable for finding turning points in a fastmoving event such as a covid vaccine. One data point we need to look at lets bring into the conversation, Rasmus Bech Hansen , ceo founder, airfinity. Good to speak to you. Following this weeks news, what is your time horizon for vaccination in various parts of the world . Rasmus first of all it is exciting news, there is good reason to be excited. There is good efficacy data pfizer released. If you look at it globally, this vaccine is targeted for the western world, it is a special vaccine that cannot be distributed globally. When you look at it from a global perspective, you have to say it is a vaccine for certain parts of the world but not a solution for the entire world. Anna you say that because of the temperature it needs to be kept at, and the logistics will be difficult . Rasmus yes, that is the main reason. It requires a low temperature for distribution which makes it difficult to distribute globally. If you look at the timeline, the other big issue is production. In the Pfizer Press Release that not many noticed, they reduced their expected