But negotiations remain far apart and vander layen believes they are close both sides are severely hit by the pandemic. We should do Everything Possible to find and agreement that is possible so that we do not increase the negative impact on our economies. Lvmh shares move lower. Tiffanys arguments as unfounded for the case of ditching the 16. 6 billi 16. 6 billion take over deal a warm welcome. Lets kick off the show with a look at the markets. Rallying more than 2 breaking a twoday losing streak. Dax in particular was very strong leading gains rallying 3. 2 ftse 100 lagging a little bit. We are seeing a little retreat this morning the dax is down as well lets dive in to the sectors to see the best and worst u littlitiutilities are the onln the green. Lets look at the worst per forping sectors. Yesterday it was worth mentioning you had the banks leading down sharply to the down side banks down 1. 4 . Autos down 1. 3 some of those reopening stocks taking most of the hit this morning. U. S. Futures, what are we in for at the start of wall street. Dow jones about to open about 85 points and s p looking at a fairly mute the start. This comes after a positive move the s p advancing about 1. 6 nasdaq rallying 1. 9 lets bring chris into the conversation cio. Great to have oun the show the European Market has been more resilient over the course of the month of september. Trading down 0. 8 on the month versus u. S. Indices down 6 in some cases do you think this can continue from here . Chris, it looks like we are having a bit of issues with your audio. Lets take a closer look at lvmh in focus this morning. The company has sought to strengthen its case against tiffany. Saying the spurious argument put forward. The collapse of the 16. 6 billion deal lets get charlotte to give you the latest on the saga on what is unravelling here. What more can you tell us. Yes, indeed the latest chapter looking at spurious arguments put forward by tiffany saying lvmh tried to play the clock and file for approval particularly they have filed for this about 10 days ago after they said they would have to step out from the merger deal after they received a letter from the french government this is the latest chapter here, lvmh counter suing tiffany they should express the statement this morning given the arguments in the filing here saying they have faced material add virs change in its business. Thats a standard provision where a buyer can step out for a deal here, they mention given the covid crisis that tiffany is particularly ill suited for the challenge ahead. They mentioned exposure of the u. S. Market and foot fall in malls in particular. They also mention that there was a Miss Management as the other argument here talking Miss Management and how the current management breached the operation to run the business soundly until the deal was closed and mentioned that they paid the highest possible dividend when the company was burning cash and reporting losses in this statement saying no other Luxury Company in the world did so mentioning the absence of a pandemic as a carve out to say, well, this has been one of the element that was in other deals. It was in the disagreement between the protest in frank, civil unrest or Cyber Attacks were the conditions that they would have to go through pandemics were not one of them they would have to step out from that deal. This comes after this letter that lvmh said they received from the french government asking them to delay the closure until after january 6 which is a deadline for agreement to come on the back of the Digital Services tax and come on to french goods to give after receiving this letter. They said they could not follow the calendar that had been agreed with tiffanys to close the deal and there for had to step away from the deal. That came after rumors lvmh were looking for potential legal loophole to renegotiate, the terms of the deal before the covid crisis a very different landscape for the luxury sector. They were trying to find some ways to negotiate the share price at 125 per share. We know this filing will be in the suit for the fifth they could negotiate a solution but the latest chapter as you said, juliana. In the meantime, down 0. 5 on the cac. The precedent this could set for other companies that have agreed deals before the pandemic and what may happen with them now. Thank you for your reporting lets take a quick check we have red across the board dax now 1 lower ftse 100 pulling back by about 1 the pace per selling is gaining. This comes after the strong gains yesterday. The dax leading the way more than 3 higher just to put these into context for you, for the month of september, the stoxx 600 is down 0. 8 , which marks a more resilient performance than weve seen state side. Chris, hopefully you can hear me i want to pick up about that point on the month to date performance in europe. The stoxx 600600 down less than 1. 6 in the month. U. S. Indices down between 3 and 6 do you think that outperformance can continue from here great, great question yes, i can hear you loud and clear. Do i think it can continue not really, no not for now anyway the reason the u. S. Is off so much in september is because it was up so much june through to september. It will strengthen ive been saying, it has been a rally of two halves from the march 23 lows to the june highs. Pretty much everything went up together from june to september, it was a u. S. Show. A techled show and europe didnt really participate. If you look at europe now, it is basically been range bound since early june and struggling with a strong euro and heavily weighted i think the u. S. I dechl has underperformed since september given back the strong gains and that center forward. Until we see some back up in bond yields. Some confidence about the vaccine and emerge ens and that is sparking off a rally. That is heavily waited and sort of defensive because it is not tech in september. What is that pull back we have seen in the growth sek torz it has been fairly orderly what does that say about the nature of selling. Who is telling and how concerning it is thats an important point that give back globally over the course of september has been centered on tech and growth and been some dramatic moves and one or two stocks on the move. This has been orderly in this give back. That tells you, wir in an up trend since march 23 in the u. S. It is an orderly counter trend give back consolidation of gain. We saw in fixed incox, there is not too much drama there in the last three weeks and so on and so forth there is a lot of frej coming into Early September there is a lot of options and weak stocks and a lot of getting carried away with oneself, i think weve unwound that to a large degree weve reset and are ready to get back on with that up trend led by tech for now. Until we see some sense of that vaccine back in bond yields. The big question is whether these stocks will produce those earnings we have u. S. Earnings season kicking in at the start of october. Do you expect earnings to provide support for the markets . I do. If you look at upgrades,down grades, theyve been heavy for the moment thats encouraging the analyst support is encouraging and expectations will keep moving to the upside that growth side is strong relative to expectations has been good. It looks like the Third Quarter gdp. There is so much stimulus under pinning this economy especially if we get another stimulus in the states at some point, i think they will. Yes, it is expensive no one knows what the pe ratio does cap the market. What really matters is the liquidity in the Earnings Growth for now, we seem to have both of those factors. We talk the Political Risk here that we get disputed Election Results do you think the result is currently priced into markets . I think the three or four weeks worried about the election risk we priced a lot of that in if we look at the models that were greedy and telling us they are fearful. There is a lot of chatter about it everyone is talking about it, there is quite a lot of us interesting, two things. One, we used to say, if it is gridlocked, its good. The politicians wouldnt do anything they could get on with what they need to do when politicians stand back, they often do better secondly, if you look at the prior elections, there is no pattern. Sometimes the market is not interested and sometimes they sell off before the key point here is weve been selling off a few weeks. So thats a good set up for coming into the election in a few weeks time. Well leave it there, glad we got those audio issues sorted. Cio of longview economics. A british super market chain has picked up a preferred bidder the brothers have joined forces to buy walmarts majority stake of the chain for more than 645 billion. You can see that marks and spencer hoelgd up a little better lets look at the frankfurt listing of walmart Holding Steady up about eight basis points i think weve got some live pictures for you of the german finance minister speaking where the 2021 federal budget is kicking off. Well bring you any commentary for you as the show progresses if you want to get involved in the conversation on the show, thats at street signs and britain and the eu struggle to find a compromise as they warn of a greater damage from a hard brexit more details next. The coronavirus pandemic has now claimed over one million lives with cases continuing to rise in europe and america u. S. Vice president mike pence has warned americans to expect case numbers to rise in the coming days. He cited greater testing capabilities in some midwest states President Trump defended his administration testing strategy. I elected authorities more than 100 times and distributed more than 171 million to expand testing production weve done almost twice as much testing as france, italy and almost six times more than south korea. Weve done far more than any other country usually two, three, four, five or six times in france, the number of people in intensive care hit a threemonth high spain has reported nearly 3,000 new cases bringing the total to 750,000 cases. Following a meeting with madrid officials that failed to reach an agreement translator the longer we take, the tougher the measures we have to apply and we have to be very clear, the situation is complicated. It is not enough to stabilize, you have to bend the curve and lower the incidence. You have to lower it and this isnt easy this is going to take weeks and effort it was already done on an earlier occasion thats why we have called on the Madrid Health commission to review their measures. Warning failure to do so would make things worse. I call on the responsibility in these times our economies on both sides of the channels are se veeverely hb the pandemic we should do Everything Possible to find an agreement that is manageable so we do not increase t impact to our economies. The details are clear on the table, so from our side the willingness to step forward and to have an agreement is clear. Sylvia joins us now and has been following all the twists and turns. How would you frame the key message coming out of the meeting between the uk and eu negotiators . The rhetoric of a no deal has dialled down over the last few days that was clear yesterday after that meeting between european officials. They rei had rated that they want to reach an agreement despite the outstanding differences that they still have the main issue seems to be the internal market presented a few weeks ago. If it goes ahead and becomes law, it would override parts of the agreement, the deal that uk and the eu put together and signed earlier in that meeting between officials, the message was to ask the uk government again to withdraw the articles in this legislation that challenged the agreement but on the other hand, we heard from the uk government that thats not their intention. In this context, id like to show you some remarks from this uk government meeting. There have been those in the union that have been concerned about the clauses we have put into the internal market i was able to stress today that these klauss aclauses are a saft we want to make sure the position of north earn ireland are secure and the agreement is implemented in full. Those are not there. Supported as a safety net if need be and those will remain in that bill. When it comes to this internal market bill, it will be in the house of lords as of tomorrow and it could be that the Upper Chamber could ask for changes. Lets see how those discussions will come in the coming days the eu made it clear, theyll start studying the possible legal steps that they take if the government goes ahead and implements the market the way it is now they are starting their final round of talks today lets talk about what happens if those talks go well. Is this a chance to secure a teal or look to extend the midoctober deadline to reach a deal this is their final round of negotiations of that deal in the midoctober deadline the ultimate deadline is december the 31st of september. Thats when they need to figure out what sort of arrangement they have of trade starting in january. The idea, the reason why they said midoctober is that they want to have enough time to get approval for the potential deal in the uk and the European Parliament but technically speaking, they could extend that midoctober deadline for november to bridge the outstanding differences they still have we know at the moment, those are particularly about fisheries and competition rules but also a school of thought out there that if you actually put the heads of state in the same room or same video call, then they can bridge these two and that could pave the way for a Technical Agreement that would bring indeed a trade agreement together lets see how this final round of negotiations and what they will say by the end of the week so that we can understand if they are indeed aiming to reach an agreement or if there will be some delay when it comes to that interesting to see that the pound has rallied on the back of these headlines. We are seeing more strength versus the dollar trading just above the 1. 29 mark. Coming up, investors have flooded the esg market but how can investors ensure they are putting money into the most impactful funds. Well discuss that welcome back to street signs. These are your headlines European Markets are lower a day after banks led higher and u. S. Futures turn red following mondays rally democrats propose a 2. 2 trilli 2. 2 trillion stimulus but taxes look set to dominate the first u. S. President ial debate after a report President Trump paid no federal income tax for a decade. Brussels warns the uk position remains far apart from europe the uk commissioner says those are part both sides are severely hit by the pandemic. We should do Everything Possible to find an agreement that is manage manageable so that we do not increase the negative impact on our economies. Lvmh claims tiffanys argument is unfounded for ditching the take over deal. We did see the dax gain is wo r we are seeing the ftse 100 and we have bounced off the lows of the morning. Just about 20 minutes or so down he the ftse mib holding up best. Relatively steady this morning from the senior bank of england official as well as the positive tone certainly around those but still a lot of uncertainty around those. Still holding up 0. 3 . And holding up strongly to 1. 1678 u. S. Futures see where we are poised to start the day on wall street the dow just about eight points. The s p 500 and the nasdaq looking at a fairly flat start yesterday, we did see things fall and the s p and nasdaq popping. A pause in breath for investors today. Moving on air france from hold to reduce saying they are counterproductive at reducing emissions at a time they are already battling the pandemic fallout. Taken majority in large cities the president macron has made his own Climate Friendly pledges. Total also in focus will acquire londons Largest Network of londons charging points the source runs more than 1,600 charging points in the uk c capitol. In line with the citys goal to be zero carbon city by 2050. Joining us now from clarity ai, she is the ceo as money pours in to the esg market, she warns not all funds are created equal and investors are looking at how they can make the most impact with the money looking at how the investments have evolved for the pandemic. Thank you today, investing has grown more than 30 on assets and management. With the pandemic, that trend is accelerating we have seen a increase of demand to more than three times than precovid19. Definitely accelerated this situation is. It leaves a lot of subjectivity and subject investors is there a place of more uniform measure definitely a maethodologists to sustainability and social Environmental Impact that is a challenge we try to attack with clarity. On the Technology Platform of investors to help them understand and develop their own views as well. One of those ways they can access the theme and various etfs, which of those types of Investment Products do you think offers the best way to being assess high impact esg investments. What we acknowledge is that different investors have different goals within Sustainable Investment depending on those goals, they might choose different products. They might choose optimal investments. Depending on the goals, they are different products thats why they work on the platform always based on the goals that they acknowledge they might have when it comes to the investing, timing looks like the issue. If you are too early you are stuck through the heavy, heavy investment phase how do you time that and are there tools you can use to try to do that better . Yes the goal is different. Do you want to have the lowest Carbon Emissions today or minimize the future emissions so help those companies to transition to make the right investment that is Something Else can you do so understanding the Carbon Emissions versus the future of the company. T