California joins texas reaching one million infections. Picking a statement, President Trump bands investments and firms controlled by chinas military as u. S. Election Officials Say the vote was the most secure in american history. Welcome to the program, happy friday morning. Under one hour until the start of the cash equity trading session in europe. We have a mixed picture in futures. European futures looked negative. Yesterday u. S. And european stocks dropped around concern to the extent we may see new lockdown measures in the United States. We have a futures picture where europe is weaker, wanting to play catchup with latterday losses in the United States. U. S. Futures. 2 the upside. U. S. Futures point two the upside. Nasdaq futures are treated like havens during the coronavirus. Lets look where we are across the broader assets, weakness in china. President trump in the last few months of his presidency, focusing on the things he can still act on. China mobile and telecom falling as results of a new order from President Trump u. S. Investment into anything that is Chinese Military. We will keep an eye on the stimulus conversation in the United States. The white house is taking a step back from that dialogue. The potential for further tougher measures are focused on by the markets. To you, laura cooper, a lot a focus on yesterdays session to the extent which the United States might have to introduce tougher measures as we go through the Northern Hemisphere winter. And alarming commentary coming through, one of her colleagues in the u. S. Suggesting risk is on the verge of a meltdown. What are you seeing with the link between the virus and where we trade . Laura the fact we are seeing renewed lockdowns come across the u. S. Is shifting the market narrative away from the vaccine optimism that drove price action earlier this week back to could we be in a situation like march when risk assets sold off on the backs of the lockdowns and wave of infection. Markets largely shrugged off the second wave through the u. S. In the summer. Back in the spring we had this impulsive from the Monetary Policy, and we will not get that again, and that is keeping investors nervous. We will see these spurts of vaccine progress, and that might andnough to support overall not reach those march lows. We can expect volatility as tugofwareigh the of vaccine optimism for the future and near challenges of restrictions. Anna it will be interesting to see how markets navigate that. They can be medium term optimism around the vaccine, but in the immediate future, concern about how the winter develops. I suppose investors, with a base case for how tough the winter will be. People are a lot of focused on the extensive lockdown measures to be reintroduced in parts of the u. S. Laura absolutely, and if we look at gauges that point to the degree, they are not at the levels they were in the spring. The Economic Contraction we saw in q2 are unlikely to be repeated this time around. Ultimately governments want to keep restrictions localized and not have sweeping national lockdowns. As of yet it is not prudent to be as effective. In the u. K. We see the case count climbed to record highs, but it is too soon for markets to put their nearterm focus on the economic collapse, because we have support coming from Central Banks. For the u. S. It will hinge on fiscal gridlock. Mismatch for vaccine deployment and nearterm challenges on the growth outlook. Anna i must have taken my eye off that coin for too long, because it is doing something interesting. Aboveould drive bitcoin 20,000. It is currently above 16,000. Interesting to see it rally to the vaccine news. Some people do not like bitcoin at all, and others suggest it is a haven and can have haven properties. Why would a haven rally through the vaccine story . Laura bitcoin is one of those things that pops up on your screen once in a while and goodness, what is happening . We could potentially see it break above those 20 record highs. The fact it has rallied on the back of vaccine optimism is in part because a lot of Retail Investors can use it as a proxy sentiment. The fact they are piling in suggests it could be used for reflation and reopening trade, being priced into that affect. When we look at the bitcoin cycles over time, we are in a fourth cycle. Suggests it could be momentum building through 2021 before consolidation is due there. Given the extent of the rally, one her 30 yeartodate, it is a volatile asset. Its Intrinsic Value is questionable, but the fact it is a proxy for retails and a haven as well, those factors should keep it propelling higher. Anna something i found interesting this morning, i was not sure how much the comings and goings at number 10 and downing street will feature on radars. It could on who stays, set the course for how the government governs in the future. And specifically around brexit. On the current news flow, the talk of comings departing by christmas, we are seeing the pound a little higher. Perhaps it will have impact on the brexit negotiations. Laura it is not really surprising given the fact that Dominic Cummings is considered a hard exit tear. His departure hard brexiteer. It suggests we could see a softening stance in terms of brexit negotiations continuing into crunch time. Remaining, have gaps markets are priced for optimism in terms of a deal coming through. We are seeing a kneejerk reaction. Given the tight timeframe, i onld expect no deal is still the table and it is not priced in the market at this stage. Sterlingrobably see down from here. What thewill see market makes of that. Thank you, laura cooper, market live strategist. It involved with the question of the day they ask on the markets live blog. What could drive bitcoin over 20,000 . Next, do not stop now, the imf says action by governments and Central Banks have put a floor under the World Economy. We will talk about that next. This is bloomberg. Anna welcome back to Bloomberg Markets european open. Ofminutes until the start equity trading. This is what the global picture looks like now, chinese stocks under pressure. Part of that is a global concern around the resurgence of the coronavirus. Futures point to the downside. U. S. Futures point to the upside. That is the mismatch we are dealing with. Nasdaq futures point to the upside. Europe needs to play catchup to losses in part of the session in the u. S. Yesterday. Laura the u. S. Is banning investors owned or controlled by the Chinese Military. Is part of trumps latest bid to apply pressure on what he abusived as practices. Relationships have curated with the president bowing to punish beijing over the coronavirus pandemic. State and federal officials headed 2020 election was the most secure in american history. A see no evidence of deleted or lost votes, or the election was compromised in any way. It comes as trump continues to make unfounded claims of fraud. Poland is joining hungary and threatening to veto the eus Recovery Fund to make sure funds only go to countries that uphold the rule of law. He eu needs unanimous approval if they block the budget, poland would lose 23 billion euros. Hungary would lose 6 billion. 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. Anna the imf is saying recovery, managing director said actions by Central Banks have put a floor under the World Economy. That comes as the virus ravages United States. No part of the country is being spared with california passing one million cases. Richard saldanha, fund manager, global equity, Aviva Investors Global Services joins us. Good to speak to you. This week has been incredible in terms of the news flow. We got the news around the vaccine and covid expectation. There was expectation and hope, then we saw concrete progress. The market jumped on that, pivoted to value. How did you do through all of that . Richard you are right, it has been an incredible week. Onthink the news you saw monday is a game changer for markets. The moves you saw on monday reflect the positioning now. A lot of people sheltering in the work from home, some of the big names that we have viewed as safe havens. We have shunned the areas that have impact like travel and leisure. The fact you are seeing rotation over the last few days reflects the market is coming to grips that we are in the midst of a second wave, and the news on monday was very welcome and provides light at the end of the tunnel that we have been looking for. We need further data, and there will be hurdles in terms of logistics for the roll of the vaccines. That is why you see a retrenchment. We think this rotation on monday has legs, and you can see that play out in the coming months. Anna how do you where do you see further room for movement in that rotation . Indent into no real the value story . Richard certainly if you look at how much the moves you have seen in areas of the market, i suggest they could have further to run. A lot will depend on further data points out of m moderna and astrazeneca. In our view we think this could play out over an extended period. In terms of sectors we think are interesting, financials are a good example where we see potential upside. We see a return to can, activity in a sector that has had a big impact in taking provisions for credit losses. We see evaluations looking attractive. If we see movement in the 10 year yield, that is an area we are keeping a close eye on. Anna how do you position through what could be a volatile winter . Do you set your sights on a portfolio that makes sense on the others of this . Do you set your sights on that portfolio and sit through volatility in the short term . Depending on how tough things get, a portfolio positioned for recovery could come unstuck in the shortterm. How do you approach that . Richard in the shortterm it is hard to call right now. Bigre in the midst of a sector wave, and Jerome Powells comments focus on controlling and getting hospitalizations down. Longerterm, going into next year, we expect Monetary Policy to remain supportive. You have the prospect of fiscal stimulus in the u. S. , and there is a big gap to bridge where the democrats and republicans are, but a fiscal package would be helpful. The potential for resumption of Economic Activity with the caveat of rolling out a vaccine. 612 month on the view, there is reason to be optimistic. Thinking of some level of normalization playing out next year, but the next three to six months is tricky. We need to get a grip on the second wave. Anna thank you very much, richard saldanha, fund manager, global equity, Aviva Investors Global Services. He was mentioning the response from the central banking world. We will talk about that next. Bullet, the vaccine will not solve economic woes. We will linger on that. This is bloomberg. That is certainly good and welcome news for the mediumterm. Although significant challenges and uncertainties remain about timing, production, distribution, and efficacy for different groups. From our standpoint it is too soon to assess with confidence the implications for the path of the economy in the near term. As we get more news on the vaccine situation, i hope it will give encouragement and hope but also start to begin to reduce the level of uncertainty. We are not really there yet. For monetarytant policy, because we have to make Monetary Policy in conditions of extreme uncertainty. I dont want to be exuberant about a vaccination, because there are uncertainties about the logistics, transportation, the rolling out, the fabrication, the number of people that will be vaccinated in 2021 so we can reach the herd immunity which will give us more certainty from the health point of view. Anna a host of central bankers limiting their exuberance, christine lagarde, jay powell, Andrew Bailey warning that a vaccine is not enough to end of the economic challenges. Richard saldanha, fund manager, global equity, Aviva Investors Global Services is still with us. We talked about this, about how it is great news for the medium term, but how does it help in the shortterm term . What about central bank support . Do you expect the ecb to do more . Richard i think it is clear central bankers locally will remain supportive. The commentary we have seen suggest that. For us, the key is fiscal stimulus coming into play. The u. S. Is an area we are focusing on. We have to gap the bridge between where democrats and republicans are. A fiscal package will have significant implications for expectations on the yield curve as well. I expect Monetary Policy to remain supportive. There is an understanding that even though we have that policy data on the vaccine, it will take time to feed through. In the meantime we expect the backstop to be there. We want to see fiscal stimulus coming into play to support economies. Anna clearly the virus is the number one challenge we are living with at this point. When we look ahead, the challenge of our lifetime, more on the climate agenda. We heard from the Central Banks on that subject. When we think about this other challenge and the structural opportunities that maybe this brings, how are you positioning yourself around a green agenda . Is it around Infrastructure Investment . Richard yes, absolutely. After the one area u. S. Election result you can ca sea change in you can see a sea change. The Biden Administration can influence policy and rejoin the paris clement agreement, that is a major step. There are a lot of areas where you can see beneficiaries. Building efficiency. The biden climate plan outlines the upgrade of 4 million buildings across the u. S. , that would be beneficial for companies, air conditioning, Companies Helping on the Energy Efficiency side. Siemens, schneider as well. Companies can benefit from this. You really see governments step up. The European Union with a significant roadmap for transmission. The u. S. Rejoining paris would be a significant step reestablishing themselves as a key player in climate. As we go into next year. Anna how do you play are you looking for play exposure for renewables, or businesses moving in that direction . Richard for us, we need to think about the supply chain. We have seen the names you referenced that have done extremely well, whether it is wind power or solar power generation. If you look further down the supply chain and Cable Manufacturers playing a key role in connecting offshore wind farms to the main grid, that is an area of focus for us. We think companies that are helping in efficiency, helping making the grid more resilient, such as what we are seeing in the u. S. Had a role to play. It is not just about the peer play names when you think about the supply chain and the whole ecosystem. There are a lot of interesting areas. Anna thank you for your time, richard saldanha, fund manager, global equity, Aviva Investors Global Services. The latest lines out of china, the Chinese Foreign ministry giving a briefing, saying u. S. Executive order is harmful and they urge the u. S. To withdraw that order. This is in connection with the u. S. Banning investment in firms owned or controlled by the Chinese Military. Up next, we speak to chinese specialists about china. This is bloomberg. Welcome back. European futures look negative. U. S. Futures looked quite mixed, mixed to positive. Nasdaq futures up by 0. 5 . Oil prices move to the downside. The u. S. Is banning investments in firms it says are owned or controlled by the Chinese Military. It is President Trumps latest bid and pressure to beijing. Trumps executive order says china is exploiting u. S. Capitol for its military. Joining us to discuss is jonathan fenby, chairman of China Research at ts lombard. We are looking at live pictures of the Chinese ForeignMinistry Briefing on this, pushing back against what we have heard from President Trump overnight. What is the significance of this . We might get more of this, i suppose, from President Trump. He can do this by himself. Jonathan yes, this is part of a steady ratcheting up of peoples, which i think in the Trump Administration want to get through before the transition in the u. S. At the end of january to a new presidency. Actions are quite probable indeed. Pointsme ask you about of tension between china and the United States. Hong kong has been on the list for a while. I guess we are looking for a continuation of sorts from president elect joe biden and his approach around hong kong. Do you since any change in strategy from the United States on these points, on hong kong and human rights issues with china . The biden, certainly, word from his team is that they intend to continue a tough line towar