Fears. Republicans are sounding more optimistic about fresh fiscal support while u. S. Virus cases spiral. Good monday morning. 6 00 a. M. In london, 7 00 a. M. In brussels, where brexit negotiations are taking place over the weekend. Lets see where we trade this monday morning. We did not get a brexit deal. What we do see after the friday rally, the s p 500, the doubt, the russell the dow, the russell, all hitting new highs. The u. S. Plans to add sanctions on about a dozen chinese officials. The msci down about 0. 2 this morning. Many futures are down 0. 3 . 10year yield on friday inching closer to 1 , a level we havent seen since march, steepening on the t the largest steepening since 2017. This is on fresh stimulus talks. The pound, we saw some softness. The pound is the barometer for brexit, and brexit negotiations resumed in brussels yesterday. Signs one of the biggest obstacles to a trade deal is close to being resolved. U. K. And eu are hoping to finalize the deal, but another key Sticking Point remains. Maria tadeo, good morning to you. You had a lot of early mornings and late nights. It looks like theres been some progress on fishing rights. Now what becomes the big issue . Maria we are close to a breakthrough on the fish. This is all about softening the blow after brexit to the fishermen who are not going to be able to go deep into the u. K. Waters. We are moving close to a political landing zone for this that would see a transition period in the range of five years to seven years. U. K. Wanted 10. Now we are moving close to a breakthrough. The big Sticking Point continues to be the level Playing Field. This is about the u. K. Moving away from the eu standards, from the regulations that set out the playbook in the European Union. This is a question the Prime Minister will have to ask himself. Does this pass the sovereignty test . This was all about taking back control, setting up your own regulation. How much could you politically move away from the eu regulations and make that ok to your own political audience . The big Sticking Point is the level Playing Field, not so much the fish anymore. Annmarie what happens in the next 24 hours . Many were hopeful we would see a deal by this morning. Maria right. We did speak to some european officials yesterday who say they dont believe there will be a deal approved in the next 24 hours. This is still technical talks. We do have a briefing. 27 ambassadors. It will be interesting to see the reaction we get from some european capitals. The very important phone call between Boris Johnson, the Prime Minister, and ursula von der leyen, happening today. That could signal whether or not there is a momentum for a deal. Thursday and friday, they will meet in person in brussels. That is still seen as a real deadline for any deal to come through. Again, stressing that this is ultimately a political decision. You can have a deal on the technical side, but if european leaders and the Prime Minister dont give the green light, then its not going to happen. That will probably be at the end of the week. Annmarie bloombergs maria tadeo in brussels. She will be across this story throughout the entire week. Maria will be speaking to a member of the European Parliament and brexit steering committee. That exclusive conversation coming up at 8 30 a. M. London time. Later, we will speak to the mayor of london, sadiq khan. That interview is just after 10 30 a. M. London time. Now, joining us this morning to digest all of the latest news, tatiana. Good morning to you. I want to get your sense of the situation. We are hearing so much out of brussels and london. It seems like the effective deadline is going to be thursday at this eu summit. Do you think we reach a compromise by then . Good morning. They keep us guessing, dont they . You know, im torn. It seems they, market is not. The market thinks a deal is on the table because it makes economic sense. Im maybe a little less optimistic about that because its not just about economics. It is about ideology and politics. This morning, as maria just said, it is clearly a positive that there is some movement on fishing. One wouldve thought it was possible to find an agreement there. Theres a number of ways to cut it. One is the timing of the transition. You have something to play with. I would think that there is something similar on the Playing Field that you just have to find the right wording, where you can say, im independent, but, at the same time, i do acknowledge that i work in a great system. Its just about the packaging, you would think. At the same time, why has it taken so long if it is only about the packaging . When you convert it back to the markets, there are so many more steps. If we assume that the negotiations that there is an agreement, then it has to be rectified ratified. There is a long way to go. Note, howon that promising is it to you that chancellor merkel, the times is reporting, is softening the stance on the socalled level Playing Field . I think she is currently playing the [indiscernible] she sounds very reasonable. Lets just move forward, be rational. Try to find a compromise. A is always possible. Those a compromise is always possible. Those wordings are very soothing. They are the right way to approach these negotiations. Because one can make it a winwin. Theres talk the European Union didnt want to be seen to allow the u. K. Too many positives, given that they want to leave. At the same time, as we said earlier, you can package it in a way, and its just about the communication, that you say, look, they want to go their way. There will be consequences for us. At the same time, we want to find a new working relationship Going Forward. Annmarie a brexit deal, tatjana, coupled with very hopeful vaccine news in the United Kingdom. Tomorrow, u. K. Hospitals will get the vaccines and start the inoculation process. Those two things coupled together potentially in one week what kind of movement do you see in u. K. Markets, especially since many are saying the value trade, the rotation is here to stay . Tatjana the value trade is here to stay. This is a nice next positive step along the way. In that regard, it is a positive. See,hen well have to because clearly it is a public good. The vaccines are not being sold privately to start with. How a blackee market is developing there. Clearly, the most vulnerable would be vaccinated first. Thats a good the right way forward, because we know who is most affected by it. We will have to see how the economy can reopen. The u. K. Has been one of the most affected. Gdp has been the most affected. This actually impending Brexit Impact has put pressure on gdp, in addition to covid. Clearly, those are the right steps forward. Then we will have to see how it has been accepted. I would assume that, very quickly, there is a change in attitude. If you see your freedom of movement is being increased, there is skepticism around getting the vaccine. Manus t annmarie tatjana, thank you for your time this morning. We will talk about u. S. Stimulus next. Lets get a recap of the first word news. President trump says his attorney, rudy giuliani, has tested positive for coronavirus. The New York Times as 76yearold was admitted to hospital yesterday. The president wished him well, saying, we will carry on. Said hisianis son father is getting great care. The California Attorney general will lead efforts to curb the coronavirus pandemic and strengthen the Affordable Care act. The president elects priorities include expanding testing, access to ppe, and distributing a vaccine. He could be the first latino to head the u. S. Health agency. Said to bechs is scouting Office Locations in the south of florida, with a view to relocating Asset Management farm its Asset Management farm. The move could be a blow to new york as the home of the u. S. Financial services industry. 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. Annmarie all right. Thank you so much. Coming up on the program, backing a stimulus bill. Senator bill cassidy says it is likely trump and mcconnell will be on board. More on that next, from london. Good morning. This is bloomberg. We are going to focus on those most vulnerable and those most on the front lines of treating covid with the initial doses and then we are going to progressively keep adding more and more people. Be thinking in the february and march timeframe that you are going to see more general vaccination. By the Second Quarter of next year, we will have enough vaccine for every american that wants it. That was alex azar. It is looking like a landmark week for vaccines with the u. K. Set to launch pfizers shot tomorrow. The u. S. Could approve its emergency use as early as thursday. This comes as covid19 deaths globally. Llion on the stimulus front, President Trump and senator Mitch Mcconnell are likely to back the 908 billion package, according to senator bill cassidy, a member of a Bipartisan Group sponsoring the bill. Neither have said we will sign your bill. Thats fair. We will have final language that will come out earlier this week. Then people can look at it we can modify it look at it and we can modify it as needed. The pain of the American People is driving this, and im optimistic both of those leaders will come on board. Annmarie we are joined by our senior editor. Lets break down this indication. Is this a commitment or a gut feeling . A little bite, is more of an intuition. This is not cassidy saying that trump and mcconnell have signed hat on anything, t they have signed on the dotted line or given winks and nods. What hes referencing is that trump has called for a much larger stimulus thats under discussion, and he thinks that Mitch Mcconnell is going to come on board with it at some point. Its a little bit more muck more money than mcconnell wanted to spend, but the thought is, in cassidys view, this is going to be a way to get forward. Where we are coming to right now is, if you want to do a package,us sort of aid before the end of the year, there really are not that many vehicles to do it. This might be the most advanced one running. Involved who have been with the creation of it, as it is being created, are sitting there saying, theres only one train in town, if you want to go somewhere, best get on board. This is the only one running. Annmarie briefly, only a few weeks left to 2020. Whats the window to get something actually done . You have to have something this week, i think. You can have a couple of eyes is left to dot and ts left to have abut you better good idea where you are going. Theres also a defense bill out there that trump says he is going to veto, that congress may have to try to override a veto. It would be the first time in trumps presidency that would happen. Theoretically, theres a way to patch it. Theres a lot of things you have to do that congress is staring at and the clock is ticking. Everyone is going to go home from christmas. Are they going to come back at all before it goes over to the new congress on january 3 . Annmarie good point. I think december 11, in terms of having to extend the government to keep it open, is one to watch. Back with us is tatjana greil castro. Tatjana, i want to get your sense on where the stimulus talks play in the United States. Its almost like the bad news in terms of the jobs report on friday meant good news, because that put the impetus on d. C. To act. Do you see a deal before the end of 2020 . Tatjana that would be very positive. I did not think there would be a deal coming that late into the old administration. It would be positive to see it being lent to a potential government linked to a potential government shutdown. Yet there is some agreement to be found. That would be positive for the equity markets. Clearly, something we are watching very closely, what it means for the treasury markets. The treasury is in a nearterm high, just under 1 in the 10year. That could steepen further if you get a stimulus package. Annmarie do you think the 10year could pierce through that 1 . Some economists are saying is just not possible because of where the fed is. Tatjana the short end is clearly anchored. Saying ed has been we will take it slow in terms of raising interest rates. Committed nowhere as as the ecb to keep the long end as anchored. Qe than there is less in europe. I wouldnt be surprised if we see expectedgrowth to be next year. See if its inflationary or not. But still there would be strong positive impetus. With a strong stimulus package attached to it, i wouldnt be surprised if it would pierce through. Point about that stimulus in 2020, do you think that diminishes the chance for a bigger package of stimulus in 2021 . Know,a well, again, you thats why im surprised that they are pushing for it. I wouldve thought you would want to keep maximum flexibility for the new administration. It is only weeks now. Yes, you have a very good point. They may actually you are boxed in more because you are agreeing not only on the size of the stimulus package, but also on what the package is being used for. It can definitely be seen a compromise. This is now talk. We will have to see if anything will be agreed. Annmarie thank you so much for joining us. Castro, thank you so much for your time. Coming up, the United States could sanction more chinese officials. Thats weighing on markets this morning. Details coming next. This is bloomberg. Good morning. This is daybreak europe. Im annmarie hordern. The United States is set to sanction more chinese officials. This comes as President Trump continues to put pressure on china in his final weeks in office. Asiaore on this, our chief correspondent joins us from hong kong. What do these sanctions signal for u. S. China relations Going Forward . It signals for now that President Trump isnt finished when it comes to dealing with china before he leaves office. Its going to make it more difficult for President Biden to unwind some of these measures when he takes over. These sanctions are for the recent disqualification of legislators from the hong kong [indiscernible] i think the bigger focus for markets and indeed the economy will be whether they signal even bigger sanctions are underway and whether the u. S. Targets banks, for example. Annmarie it might not just be chinese officials. It could move to banks and others. We also had chinese trade data out this morning, which beat expectations. Huge, what we saw. Whats behind this massive jump in exports . Its a bumper number. The explanation was there might be some tapering off heading into the end of the year, but we are seeing the opposite. Early take seems to be there is still strong demand. China is good at making personal Protection Equipment for the health sector, given that the virus continues to search in europe and the u. S. , and all of the work from Home Technology everyone still needs. That seems to be feeding the demand. There is an argument among economists that perhaps as the Global Economic recovery is slow because of whats happening with the virus, that will eventually feed through to chinas own exports. Its a bumper figure. It sets up china to end the year on a strong note. The question is how long that can last heading into the new year. Annmarie thats the question i ask a lot of guest on the program. S guests on the program. How much can the chinese exceptionalism last if the rest of the world is falling behind . China was first in an first out when it came to the pandemic first in and first out when it came to the pandemic. Doubt the no manufacturing and export story has been an important leg of chinas own recovery. A lot of investment is a state led. Thats would be in thats been one of the key legs. Domestic consumption is doing quite well. It took a while to get going, despite the fact the virus has been under control for some months. You have investment. You have this export story. Its likely to hold up in the near term. Theres the ongoing virus surge in europe and the u. S. , twitch will drive demand which will drive demand for ppe. Its a question of how long we can last it can last once we turn the corner into the new year. Annmarie thank you so much for that recap. Lets take a look at that move. We saw him move lower decisively in asia saw a move lower decisively in asia, down 00. 2 . The stoxx 50 down more than 0. 2 . Friday, we had fresh records with this news about fresh sanctions potentially on about a dozen chinese officials. Officials, ort does it go to the Banking Sector . That could start to make the markets jittery. The other story we are watching brexit positioning. Your morning call is next. This is bloomberg. Morning from bloombergs european headquarters. These are todays top stories. One step forward, one step back. Brexit talks near a compromise on fishing which means a level Playing Field is the biggest obstacle. Stock rally hits a pause. The u. S. Plans to add more chinese officials to a blacklist. And stimulus hopes, virus fears. Republicans are sounding more optimistic about fiscal support. U. S. Virus cases spiral. It is monday morning. 6 30 a. M. In the city of london. Michel barnier said to be briefing eu ambassadors. We are waiting for any headlines out of the frexit negotiation. Still no deal. Pressure on asian equities. We just caught up with our chief economics reporter out of asia. The u. S. Is planning potenti