Began logic in the tiktok negotiations amid news china is unlikely to back the deal with oracle and walmart President Trump says he will nominate a candidate to replace Ruth Bader Ginsburg on saturday. Sources say he met with Amy Coney Barrett at the white house. Lets get to the top story today in the United Kingdom. The government is expected to announce a series of new restrictions imposing a 10 00 p. M. Curfew for pubs, bars and restaurants and expected to do a you turn when it comes to work from home guidance raising the alert level to four. Saying the risk of second round of infections is high or rising. Speaking to cabinet news, the government is working to ensure people continue normal life limiting social contacts no one wants to do these things or take these steps they are reluctant steps but they are necessary as we were reminded and you are reporting, the rate of infection is increasing. The number of people going to the hospital is increasing and we need to act is it is not just the United Kingdom but when it comes to the focus, authorities will impose local restrictions for today as the french city battles a spike of intensive care restrictions in spain, requesting help from the army to help battle a surge in cases what does this mean for markets. Lets take a look at how we are trading. Weve got green on the board a rebound after yesterdays brutal sell off. It was worth noting and the stoxx 600 plunged 3. 2 working the worst daily performance. A bit of a rebound here not recouping the losses the dax is out performing alongside the ftse mib up 1. 5 and the german index is the worst performer. Travel and leisure was one of the worst performing sectors alongside banks. We are seeing further selling pressure weve got red on the board from iag down 2 . Lufthansa taking another hit down 1. 4, carnival a bit of news out of tui the company has slashed capacity to 40 of its normal winter season bookings for the german travel giant are down almost 60 in total as travel restrictions continue to weigh. Tui has lost 60 of market value said it is on track for an agreed Government Support packet airbus has warned it may not be able to avoid further cuts to avoid layoffs. Saying the situation in the Airline Industry is worse than we thought already unveiled plans to shed 15,000 jobs citing a slump in air travel demand. Lets bring in mark manduca from citi this plunge in the travel sector that kicked off yesterday has gotten a lot of attention and we are seeing further losses. What do you make of the selloff . Are these concerns confounded . You summed it up as worse than expected it is the lack of visibility half of all bookings are taking place in the last week before flight these airlines cant plan for their business of course no planning for a fixed cost asset base as the airline clearly is means worst than expected cash burn. Why is this happening . Youve got a nervous consumer, uk rules and fines changing rules tit for tat endorsement rules. This all leads to companies saving their ramp ups into what is the demand. This is like the mad hatters tea party. As we head to one of the bleakest and bitterest winters on record for the airlines what more can they do . That description of the sector paints a grim picture . It is hard to be optimistic going into the winter. What you are having is that most Airlines Lose money even in a good year, quite frankly given the recent round, well be disappointed on the cash side of the business cash burn will be worse than the street forecasting in the next couple of months as you emerge in calendar 2022 or rather 2021, youll see another round of highly diluted equity raters. That will quell any enthusiasm we are seeing in the prior weeks. It is very hard in a fixed cost asset base when you dont have the demand to effectively stem the cash flow. Restrictions reported are not tied to the travel industry like cutting the curfew or imposing the curfew cutting the number of attendees for weddings why is this negative for the travel sector. If you cant sit in a restaurant, what would make you sit on an airplane with 180 people this all moves people back to being more ensue lat in the way they operate and that is less travel is europe different to other regions. If youve got multiple borders and ways of explaining out the virus trapped in any one country causes a lack of invisibility causing a nonlinear demand as we go through those elements. For the tools that will travel they are ramping up in terms of capacity but hasnt been a game changer. Are all hopes dashed when p it comes to those tests being used when it comes to the flying again these things all cost money. You have to ask yourself what are the adoption rates, what are we going to charge for the supply when you charge 30 euros and it is actually 37 euro fare none of these solve for the real problem, which is, there is a virus which is forcing people to travel less. That brings it back to the fundamentals, which is there is no easy fix for this we have to accept the recovery is not going to be a 2021 recovery when we talk air travel, we have to make the decision between short haul and long haul long haul has been even harder hit. What is your take when long haul air traffic recovers to prepandemic levels one of the key routes people look for is the north atlantic thats the way you are making the 15 to 25 Profit Margins the u. S. Ahead of the elections have got themselves in the position this will not recover anytime soon prethe u. S. Election weve kbon back into the wave of lets go home. That is being pushed out to the right. Without that, it is hard to see how corporate recovers one of the major profit centers. I see recent weeks it becoming more of a short haul problem ask yourselves simple questions, who is going to book a halftime break with their kids given the bingo quarantine issues. It is not just a longhaul question it is a mix of the two have you got any strong buys or strong sells. Give them to us now. The issues we have in particular are surrounding around lufthansa we think they are going to burn more in the second half as much as 5. 5 billion will they have to go back to the government again early next year as part of what is effectively more cash burn than they thought and did they raise enough from the government the first time around this is true for a lot of airlines in q 1 next year. Cash burn will be bigger than expected in this space mark, thank you for being with us. Managing director at citi. I want to bring you fresh commentary out of bafin. Theyve said the wirecard case has led to caution in the grenke case in the spotlight after research has called to attention some alleged accounting issues and irregularity in this company they weighed in saying the case has led to caution in the grenke case saying it is an advantage that grenke is fully utilized by the united states. Into now back to what is happening in the corporate space. Suez has raised midterm targets defending itself from a takeover bid from violio. With a share dividend or Share Buy Back the new strategy has shown tangible results quicker than expected a u. S. Court has decided to expedite a lawsuit of tiffany against lvmh over the take over deal a judge set the trial date for the start of january china called for beijing to block the tiktok deal that would see oracle and walmart become the new owners they describe the deal as robbery opposing to terms that would see americans take four out of five board seats and deny beijing to the source codes. Continuing narratives with each player trying to spin the deal in a way that makes them look like the winner yesterday President Trump yesterday on fox news said oracle and walmart would have complete control they said the chinese will not have anything to do with it. Thats not 100 . Oracle came out and said americans will have the majority control and bytedance will have no ownership meanwhile, bytedance coming out and saying it would have 80 control. Walmart and oracle will combined have 20 of Tiktok Global and bytedance will have 80 . This is how oracle can say americans will have majority control. Look at the board. Four out of five members will be american the final member will be the founder of bytedance, who is chinese. We look at the vc money. 40 of bytedance is owned by american investors if bytedance owns 80 of Tiktok Global plus, the 20 from walmart brings american ownership to over 50 . Thats why oracle is claiming now that the new Tiktok Global will be majority owned by americans. Oracle and walmart dont see bytedance having a direct stake but the individual Share Holders having a stake bytedance views itself as having a direct state in Tiktok Global and doesnt separate itself. Thats why it is saying it will own 80 stake in Tiktok Global and has said it will maintain control of the coral go rhythm and will not transfer any of that activity to oracle. When oracle and President Trump say they will have total control, thats not true one member will be on the board and bytedance will have some stake in walmart as well this is where we stand right now. That was arjun speaking on the latest speaking from the bank of america financials conference and has said Wealth Management clients most active in asia have picked up. Giving some color. He says the bank has seen cash levels consistent with prepandemic levels very active again. Over time, the bank wants to put in twothirds of capital some color about how hes thinking and how activity has progressed in recent weeks so activity picking up in terms of transaction levels. Well give you comments as they come in. Bank stocks suffer heavy losses well discuss the long term implications, next give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. European banks are recouping some of the losses documents allege u. S. And europeans have moved suspicious activity reports claiming to show jp morgan and ny mellon a look at the u. S. Banks they were hit very hard. Among the worst performers in the u. S. Market. Professor of criminology. They are suspicious reports. They are suspected cases do you have any sense of how many of these transactions do actually reflect Money Laundering and how many of them are in fact, okay. No and nobody does in the sense theyve got like switzerland, the banks are required to do a lot more investigation before their report when they report, they are frozen for a while until prosecutors make up their minds. In most countries in the world, they dont do that if the banks cant account for what the transaction is for, than just the easiest thing to do is to file the activity report and then it is up to the authorities to do what they want to do with it. The sources they have to do with that is very limited most suspicious activity reports dont get looked at seriously. It is a difficult debate hereof who is complicit then the responsibility turns over to the regulator. Banks have a legal responsibility to know their clients. In your view, who has been most complicit here the government or the Banking Sector hard to say it is not just the Banking Sector where they are regulated in the u. S. Or canada but in the uk, lawyers make quite a few reports. Not that many of them are really followed up. It depends on the jur isdiction. There is no sense in making the reports in terms of finding stolen assets easier if nothing is going to be done with them. We need to think about them as an engineering problem the banks do need to know their selfs better. The states and the u. S. Need to have more or less secrecy than they do around the world too it will be easier for people to make the judgement as to whether it is really suspicious or whether we are just wrongly suspecting people. There is also a big issue about fraudulent and other transactions not being suspected, which is the other side of that coin. Can you give us more detail by what you mean by that last comment . You know, if you think about it, weve had all these antiMoney Laundering controls since 1988 when we first started researching this people spending a lot of money on this process. How is it possible that all the frauds going on around the world with people impersonating other people and companies, how is it possible for people to be moving all of this money out of russia and china if we are picking this up and we are really serious about picking up who really controls our owns these accounts it is an indictment that system is not doing nearly as much as it should do otherwise a lot of these frauds and corrupt things and terrorism wouldnt be possible the uk has the most companies in this list made public over the weekend. What does that say about the uk Banking System are we doing things more wrong than other parts of the world . No. It doesnt ironically, the uk has got another report it does mean there are some strong weaknesses ifs that not too much of a contradiction in the uk to announce reforms of companys house controls which were trained before hand they had not been announced also, there are issues about controlling the use of the same address as a kind of post for lots of companies which still need to be addressed it does tell us how the uk has critical weaknesses including the limited partnerships the government needs to address those even though businesses can play and it may cost them more money . When it comes to protocol, what happens when a bank suspects potential Money Laundering case. They are not forced to stop doing business with a client and in doing that, could it alert a client and then do something fraudulent that they are being watched . How do they get around that doing the suspicious activities at least slowing down business without alerting them to something . I think this is a contradiction. It is a criminal offense for the bank or the lawyer to inform the client that theyve made a report but they have to find a form of words. Whether that works, whether the client is working it out and getting their normal service exiting the client all together is an am bbiguous thing. They dont want the banks to invest them because then they are being under surveillance and the banks or professional gets comfort in the form of a specific request otherwise, it is an irony made a lot up by the media. Coming up on the show, we continue our coverage from the goldman sach summit as markets try to bounce back from yesterdays selloff. Welcome back to street signs. Im Julianna Tatelbaum these are your headlines european equities slug off early losses u. S. Futures are mixed uk Prime Minister prepares to impose a fresh set of National Restrictions cabinet minister says the government must act hinting at new measure. If it is possible for people to work from home, then we encourage them to do so. Beijing says they are unlikely to back the deal with oracle and walmart President Trump says he will nominate a Supreme Court replacement for Ruth Bader Ginsburg on saturday after sources say he met with Amy Coney Barrett at the white house. All eyes on Boris Johnson today, the uk government expected to announce the series. He is expected to put any curfew into mercedes raising the alert level to four saying the risk of second round of infections is high or on the rise. Saying the government is working to ensure people live limited life no one wants to do these things or take these steps they are reluctant but absolutely necessary as weve been reporting, the rate of infection is increasing. There for we need to act lets take a look at european markets now weve got green for every major region the main benchmark dropped 3. 2 the dam was theout performer the german benchmark was up. Banks and travel and leisure we are seeing continued pressure on a number of travel related names he is the managing director his word that this is an overall issue and dont target travel specifically as part of what is driving these stocks lower a little bit of green looking at the flat open if these levels hold the dow looking at a muted start a lot could change between now and then le equities are in a, quote, dang ru market with a rebound and down side of a second wave tech stocks are exhibiting classic signs of a bubble risk joining us now, jonathan great to have you with us. Give us more detail by what you mean by a kangaroo market. It has been a big year for the market that trends side ways in the kangaroo analogy you have those powerful down side risks you also have the political risks. Then you have this historic support and Central Bank Liquidity and monetary combine and fax even hopes coming through. Lets not forget, we have a path way of recovery and risk markets are kind of trapped in the middle until we have this break. It was some what surprising given you speak to analysts and investors. Heading into autumn with further restrictions it is a fragile market some sentiment of recovery is high it is hard to put those in the sector those are a shift back to the Global Growth in 21. I think we would have seen a much more aggressive view. Weve seen some of that but i would have expected more in the market i describe it as a t plus zero world where we are living real time with the must miniconsensus and the second day for the markets to gain again. Let us talk about Technology Shares you are comparing the situation now to 1999. My question, when do you think the party will be over this time the late 90s was an explosive period for markets led by tnt. It was a slightly smaller group. A lot of investors are drawing analogies and there are a lot of similarities there are also some big differences. That Research Shows one of the biggest differences shows th