France threatens to get out of the rescue plan altogether. 11,000 jobs slashed, the german giant fights for survival. Welcome to the program. Looking at the futures, reflecting the way the european and u. S. Equity markets closed yesterday. Futures down in europe, mixed in the u. S. , reflecting what we saw yesterday were the u. S. Wobbled into the close at the end of the session. New york schools closing seems to be the factor. Breaking news, some commentary from astrazeneca in connection phasehase two, not the three news we have been waiting for. That is expected to come within weeks. This is more detail on the phase two data. They are confirming the vaccines immune response in older adults, that is crucial considering who is most vulnerable to the virus. The lancet is publishing the findings. A lot of stuff we have heard already from phase three trials more advanced than this from other drug companies. It has not been peerreviewed or in journals. We are getting the phase two study, the efficacy against covid. Theoxford Study Confirms response in older adults is useful information even if it is not the phase three data we are waiting for. Lets get back to the markets and look at what we see on the gmm. The chinese equity market is doing ok. A mixed session in asia. Asia wobbling a little bit. An increase of the virus in tokyo, that is a focus for markets, along with the closure. F schools in new york will that be followed by further restrictions . New york is going the way of europe in some senses. We have seen the longest winning streak in asia in some 32 years. Sessions. Streak 13 that could come to an end. Marketsok at where the go next. S p 500 Index Futures fluctuate after new york city shut schools because of rising infections. Lets get to that conversation with laura cooper, markets live strategist. This is not phase 3 news, just days two extra information. We do have phase 3 news that has people focused on the medium, but the market can wobble on shortterm difficulty fighting the virus. We saw this from the news out of new york. Laura the fact we are seeing competing narratives from markets pricing in the vaccine optimism on clearly a 2021 outlook that is looking more upbeat against the nearterm challenges. Central banks are warning of the risks in the near term, so markets are struggling for what is the next catalyst for a move higher or lower. We did see new york city announce School Closures, we see rising hospitalizations across states. That did shake sentiment. It is not a catalyst to go lower, because there are reports of vaccine progress. It is unclear whether we will bullish,ext move being or bearish in the near term. Anna it is complicated when you look at your. We have seen the reintroduction of some lockdown measures. I wonder how much that gives us to work with when trying to assess what this will do in the u. S. If we see statebystate introduction of further lockdown measures. European markets rallied through that. Still have managed to stay more focused on the mediumterm. Laura there are a number of tailwinds supporting that bullish narrative, despite nearterm risks. We did see european equities rally despite the rolling lockdowns, and Economic Activity under strain on account of the restrictions. We still have Central Banks willing to step income us a Market Expectations are for the buying ine bond december. That is why we are seeing a muted reaction in the treasury market despite stocks coming under pressure. At this stage, stocks are more vulnerable in the u. S. Given the relatively frothy evaluations. That could be more of a factor in the nearterm. I would not expect a selloff like in march, given the economic impact. It will be or contained this time around. Anna some amongst us might think about exit about brexit. I have seen a lot of reporting, surveys suggesting 5 down on sterling if there is no deal. What are your thoughts on where sterling goes . Laura it is weaker on the fact we are seeing the potential for seeing a no brexit scenario. At this stage, we could see a kneejerk relief rally in sterling, potentially above the 135 mark, but its capacity to hold those gains is a challenge. The jan brexit beyond brexit, we will see trade restrictions regardless of the outcome, and that is not priced into this market. Risks are asymmetrically skewed to the downside. If we look at the markets are telling us, it is signaling a 70 probability of a deal by year end. If we do not see that, we will see a sharp kneejerk downside reaction in sterling, and overlay that with rising deficits on the back of increased spending. It will be quite a challenging time for sterling, and any upside will be capped. In on bitcoin. I asked our colleague mark cudmore about this. He has taken my question as a market timing signal, which i caution against. Interesting that we saw the sharp rally yesterday morning. Within the span of less than an hour we saw it quickly unwind. It is a challenging asset in terms of a macro water to forecast, because it is sentiment driven and does not have intrinsic value. In the current environment, it is likely to be the case from consensus that we will see bullish momentum persist, potentially breaking close to 20,000 record mark on the fact we are seeing a shift to more Digital Assets by Central Banks it could provide more of an impulse. We are seeing Retail Investors find attraction in the crypto of theiven the fact exceptional gains repelled momentum further. But outs of volatility like we saw in the price action. Anna thank you very much, laura cooper. You can get involved in the questions we ask and putting to our markets live team. Back, we will get further analysis of what is going on with astrazeneca. Results. Hase two study what does that mean . What can we expect and hope for in phase 3 . We will talk about that next. This is bloomberg. Our goal is to supply up to which could gos, to the united states. For 2021, our goal is 3 billion doses. Anna that was the biontech ceo speaking to bloomberg. Lets stick with Pharma Companies in the fight against covid. The Astrazeneca Oxford vaccine promotes an immune response in the phase two study published in the lancet. A phase 3 trial will affect the efficacy and is expected within weeks. Sam fazeli is with us. A lot of times, this is not the phase 3 data but more detail on phase two. What are we learning . Announcedally they the publication of the phase two trial in the lancet. The fact they in thethe vaccine elderly population. They have a group of people in 70 years plus, and that is what is interesting to see. Introducebeen able to an immune response in folks, we have not seen that data. We have seen it for pfizer and biontech, and now with astrazeneca. Not hugely surprising. It is a similar pattern with other vaccines. Useful to get that data on the older age groups. They are key to the covid story. What about the phase 3 data we have yet to see . What expectation can we have . Ofs is a different type vaccine, not messenger rna and what we have seen from biontech and pfizer and moderna. This will be taken, a new tool in the toolkit, because it is a different type of vaccine. Situationwe have a where we will not have enough doses if it was just going to be moderna and pfizer for the next three years to vaccinate globally. That is why we need other vaccines. Thatonundrum is, what if efficacy and side effect profile is different . Someo we manage that when population is vaccinated with one vaccine and others with the other vaccine . That will take a lot of work to work out. It is good to have options when it comes to medical therapy. Indeed, thanks very much, sam fazeli. Marketsus with a perspective, equities strategist , claudia panseri. How much upside you think there is for Global Equities around vaccine news flow. We got news today but it is not the phase 3 trial we are waiting for. What upside is there around the vaccine news flow . It sounds as if we managed to lose that line. Claudia panseri, sorry for that. We will try to get the connection after our next break. Eu leaders gear up for what could be a battle with pandemic relief. We will discuss that next. This is bloomberg. This crisis has shown us that Global Public health is the foundation of the worlds prosperity and security. Safe vaccines must the available for all, whoever they are, wherever they are, whatever they can afford. Incomele or low countries should be left behind. A Global Recovery is the only way to reopen our economies, to restart the labor market pair supply chains, and start rebuilding. Ons is about capitalizing existing market forces, not fighting them. We need to use our recovery stimulus to invest in the clean and Digital Technologies of the future. This is the thinking behind europes 1. 8 trillion euro recovery package. You can count on europe to lead the way. Von derat was ursula leyen speaking at the new Economy Forum conference. Lets get an update on the big news stories we are covering a bloomberg this morning. Tensions are rising among oil producers, with the United Arab Emirates floating the idea of leaving opecplus. It is unclear if this is a warning overproduction levels, or a genuine plan of action. , theboring saudi arabia uae increased output. U. K. And canada are on the brink of signing a new trade deal to replace the existing agreement britain has three e. U. Membership. Trade between the nations was worth 17 billion pounds. An announcement is expected within days. Tokyo is raising is raising as virus alert levels to the highest. New cases hit a record high. The u. S. Is facing a new rim milestone with 250,000 deaths. Hospitalizations are down but intensive care is falling the most since may. 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. , equitypanseri strategist, ubs switzerland is still with us. We managed to reestablish the line. I was asking before the break how much upside is there to global stocks from vaccine news . We have had some phase 3 trial data, and phase two from astrazeneca. Good morning. We see the vaccine as good news because, not just because it will bring the economy back, but our lives back to normal. The valuation of the stocks is not cheap, but that is due to the big drop in Earnings Growth in 2020. With the vaccine for next year available, that should bring rotation andto value rotation that we started seeing two weeks ago. This is positive news for us and the market overall. Tokyo might put an end to a long running streak for asian stocks, up for many backtoback sessions, the longest winning streak since 1988. How do you play asia given the success many parts of asia have had fighting the virus . Claudia the line is breaking, and i did not understand the question. Sorry. Anna how are you playing asia at the moment . Claudia we play the recovery. The recovery, we clearly have reference within the euro zone for small and midcap. In the u. S. We like midcap. We have some positioning overweight across industrial and in the global sector location. Names,clical and value but also with the size. Being exposed to smallcap and midcap in the euro zone, given the valuation. This is true not only in the euro zone but in the u. S. Urszula were hearing vendor line about the importance of the Recovery Fund, how worried are you about agreement to that Recovery Fund and getting fiscal stimulus given the disagreements that are currently taking place between hungary and poland and the commission . Claudia this is shortterm risk which the market is not focusing on much, but considering the by major countries like germany, france, italy and spain, we shall see something, which is important considering the current restriction in some countries. There is some risk in the shortterm, but for 2021 we will find a solution. The wider market is not focusing on that too much. The solution will be something we will understand. It is a short term risk, but it does not change the picture for 2021 with fiscal support coming through. Play the u. K. Ou at the moment, given the pivot to Green Investments and big ,nergy names, Big Oil Companies and also exposure to financials if value picks up . U. K. Is one of the more preferred countries in our asset allocation. The reason why the u. K. Is lacking is due to the different element, the u. K. Market is missing big tech names. The performance of tech names in 2020. On the others, brexit is waiting in most of the sector in the u. K. , despite these sectors exposed locally. We like u. K. And buying u. K. Stocks. Not so with the currency which we expect to be appreciating in the coming months. We like u. K. Market structure, it has a value bias. Also industrials. Nna thank you very much apologies for the issues with the connection. Claudia panseri, equity strategist, ubs switzerland. Market, we start with futures. Euro stocks point to the downside. Ftse futures pointing to the downside. We have to play catch up given the u. S. Fell off in there session over concerns over the lockdown measures. U. S. Futures look more positive. In other assets, the dollar moves to the upside. 10year yield at 86 basis points. Cable moves to the downside. We are generally risk off when it comes to stocks and fx. Up next, we are told that controlling the virus is critical as germans take to the street against lockdown measures. We will talk about the german fight against covid19, that is coming up next. Anna welcome back to Bloomberg Markets european open. 30 minutes ahead of the trading session. Euro was the most used currency for Global Payments last month, the first time the common currency outpaced the dollar since early february 2013. Dani burger joins us, why were Global Payments in euros rather than dollars . Dani has to do with the upheaval of the currency, trade and the economy. ,his data comes from swift which handles information for 11,000 Financial Institutions in 200 countries. Thingsre three main key that have disrupted the market, leading into what we saw last month, the euro overtaken the dollar. You have trade upheaval in general changing the picture. You also have recession in most countries. And political disharmony especially in the u. S. This creates a picture were the euro gets more news more often. That is seen as well in the price action of the dollar, the volatility falling more than 11 since its march. Peak. S march anna we should make the point that share of international payments, not a share of the funding currency. It does not mean crossborder loans is in euros and not dollars. How big of a threat is this to the dollar status as a dominant currency . Dani as you put it, the dollar is the currency for the financial world. It is dominant when it comes to the funding currency, and this is just one month. Coble trade is dominated by the dollar. Global trade is dominated by the dollar. It is safer now, but it does not mean it will be safe forever. Things about the dollar is that there are alternatives now. The segmentation in the euro zone, those concerns have faded. It makes the euro more attractive. We have a lot of debt from the euro area because of the funding coming from them, the crisis funding. That could start to rival u. S. Treasuries. At the same time you have a massive deficit in the u. S. , that is not shaking the bond market. But should it, it will attract more investors to the euro. There are threats, but the dollar does not look to lose its status anytime soon as the reserve currency. Thank you very much, dani burger, with all the latest on the euro, the dollar and others. More virus restrictions are overshadowing progress toward a vaccine. Berlin is the latest place with protests, with police using Water Cannons to break up the demonstrations. Speaking to bloomberg, the finance minister dismissed the criticisms. I think we did well. We acted very fast to the crisis. We decided on a Stability Program at the beginning of spring. We decided on a Recovery Program in the summer. We helped the European Union help recover the con ami, and it made it feasible that we had a Good Development in the economy so far. The rates are lower than in other places. We have to tackle the new second wave. Fast. Doing it very and with a strong support program for those sectors of the economy that has to do business for the month of november. We understand there is big support in the population. 80 , and that is not too bad. This is how things are in a democracy. Most of ther less people are supporting the government strategy. Guy Regional Courts and leaders and people in berlin are saying enough is enough. Do you think germany can be as effective in the second wave as it was in the first wave containing the virus . Containing the virus is critical to the economic outlook. Much agree with you that containing the virus is critical. Im absolutely convinced we can manage the situation as we did in the spring. All the measures we took our showing first results. We are not in a situation whether it further growth of the infection rate, and we hope to get it down with the things we are doing. And for making it more easy for the Regional Court to support these decisions of the governments in germany and at the federal level. We are now discussing new legislation in the parliament. It has been passed today and will be supported by the federal council and german legislation. When this happens this week, we can be sure the courts will accept the decisions of the government in germany. You should understand they are not saying it is not allowed to do what we did, they are saying after time, it is necessary to have more complete measures. Not just having government action. Im convinced we will be successful in the Health Sector again. Chancellor ande there was a high probability you might be, what message would you send to the people outs