With france reporting record infection rates as germany curfews go into effect in berlin and frankfort. President trump is back on the campaign trail after announcing he has fully recovered from covid, claiming he is now new. Well get rid of it all over the world. You see big flareups in europe, big flareup in canada, very big flareup in canada you saw that today a lot of flareups, but its going to disappear congressional lawmakers have rejected a white house proposal for a new 1. 8 trillion Coronavirus Relief package, as talks to reach a fresh stimulus deal before the november election remain at an impasse. The Trump Administrations plan would include aid for state and local governments and Liability Protection for business, along with 20 billion in support for the struggling airline sector. Senate republicans, though, oppose the plan in a weekend call with treasury secretary Steven Mnuchin and white house chief of staff, mark memeadows, saying they were not pleased with the high cost of the proposal meanwhile, House Speaker nancy pelosi claimed the package was not large enough, adding that more fund were required to help support Virus Testing and tracing. Mnuchin and meadows later released a letter calling for legislation to release funds from the Small Business bailout program, while a larger stimulus deal is discussed. They also urged lawmakers not to take a quote, allornothing approach to negotiations President Trump says he plans to return to the campaign trail this week after claiming he has fully recovered from the disease. Nbcs Kelly Odonnell has more reporter tonight, President Trump making a new claim about his own covid recovery, saying he tested negative in an audio message to supporters. Were in great shape, tested totally negative and really in good shape reporter but the white house physician, sean conley, has not reported the president tested negative for covid in a memo late saturday, dr. Conley wrote, he is no longer considered a transmission risk to others. Today in a fox news phone interview, the president claimed he is now protected by immunity. You know, the word immunity means something, having having really a protective glow, it means something reporter the cdc guidance says being cleared from isolation does not imply immunity the doctors memo also indicates the president may have had more recent fever and lingering symptoms, given this wording feverfree for well over 24 hours and all symptoms improved. The president s health injected in a campaign ad reporter President Trump is recovering from the coronavirus and so is america. Reporter the Trump Campaign used an old interview clip from dr. Anthony fauci. President trump tackled the virus headon, as leaders should i cant imagine that anybody could be doing more. Reporter but dr. Fauci tells nbc news, they did this without my permission and my comments were taken out of context. In my five decades of public service, i have never publicly endorsed nor do i now endorse any political candidate. The Trump Campaign responded in part, the video is from a nationally broadcast Television Interview in which dr. Fauci was praising the work of the Trump Administration. Today, joe biden attended mass in delaware, while this weekend, biden warned democrats to be wary of intimidation tactics at polling places weve got to go out and make sure you vote, because the only way we lose this is by the chicanery going on relative to polling places lets take a look at some of the Market Action in the european markets this morning. We are still trading weaker on the ftse, similar to where we started out the trading session, holding 6,000 points, but a weaker start the French Market, deepening out of a positive in negative territory at this point. So fairly flat trading pattern the dax has given back some of the early leadership it was showing as well. You can see, only up about a tenth. Slim ranges from the smi and zurich and slightly down on the italian market weaker for stocks in spain so patchy session, not a huge amount of momentum at this point. Well, the bank of england has asked uk lenders to provide information on their readiness for negative Interest Rates. This after the boe announced that it was considering plans to take rates below zero if necessary. The banks have until the 12th of november to respond. And you can see, most of the banks trading higher domestic ones a little bit weaker at this point lets get to jim mccormick, global head of desk strategy and jim, do you want to weigh in on this type of market we caught this morning looks like were lacking direction. Listen, i think there was more bad news than good news over the weekend, particularly on the trend in u. S. Fiscal policy so i would say that the quiet open is probably good news the market isnt really taking the news all that negatively last week, though, the markets had got to the point where some were saying, does it really matter who wins the election at this point weve got fiscal stimulus coming anyway down the track. And plenty of monetary support, if not enough now, the fed will step in again. Does it really matter what the outcome of the election is what do you make of that thinking i keep hearing it more and more . Yeah, i would push back on that i think the outcome matters quite a lot. But what i do think the market is seeing is one that the probability of a democratic sweep is going up quite substantially. And if you get that democratic sweep, youre looking at a very sizable fiscal stimulus coming in the u. S. Very early in 2021 so i think it does matter, you know, what happens, but the market is moving toward a democratic sweep in terms of what that means for the dollar, i would be interested to hear your thoughts on that. There is a view that we do get some dollar weakness we saw the pboc over the weekend trying to enter the market to ensure that some of that strength that theyre witnessing, their own currency is tamed what do you think were setting up for if there is a blue wave i would say, just firstly on the china news, its going to be very difficult for asian policy makers to push back on their currency strength. The fundamentals are so overwhelmingly positive in asia right now. As far as the dollars, our view has been all along that if you get a democratic sweep, it should be some combination of dollar weakness, a much steeper u. S. Dollar curve. And on the equity market, its a tougher call, but looks like the market is gravitating towards it not being the negative they thought a few months ago when it comes to some of the action we saw in the Chinese Markets today as well, it wasnt just about the Central Bank Policy it was also a little bit of chasing of growth corridors. The market seems to have done a fullcircle comeback to what we started out the first wave of infections saying, we stopped chasing areas of the world where you are seeing limited covid infections. Where youre seeing a strong handling of the crisis and the market seems to have circled right back to china as its come off of this very long break for the markets. Yeah, listen. I think this concept of covid differentiation is going to be a real market story over the next six months and lets be honest. Asia, china, and a lot of east asia have done a much better job than most. And what youre beginning to see is the growth dividends that come from good covid management are accruing so good, strong anecdotal news about chinas golden week. A lot of strong data in the past month or so. Jim, where does that leave europe, there was a mindset were not going to have another National Lockdown in some of these countries, but in france, it was more than a handful of major cities that were under severe rerestrictions. In the uk, were talking about substantial services that could damage the Services Sector how do we need to think about the economic hit from this second wave now . I think we need to also think about the concept of differentiation. What youre finding in the second wave is some countries like germany, norway, italy to some degree, are faring better than others, like the uk, spain, and france and that will become a market story. On the uk side of things, the market seems to be getting excited about a brexit deal that we still dont see at a time when growth ended the summer in a fairly difficult place and with this covid surge, youre likely to see new lockdowns. Weve certainly been negative on sterling and continue to be so into the end of the year funny that you point out that optimism around a brexit deal, because the pound has climbed that 130plus handle, which is a higher range than we have been, and youve seen a little bit of headwind for the ftse. Does this trade wiwind it could climb much higher than the levels weve got at this point. I think ultimately we get a deal thats been our base case for a while. But the risks of an accident between now and the end of the year are pretty high and i think the market assumes that the pound is super cheap, given the weakening in recent years. And if you look at some of the longterm fundamentals, its not so clear im not surprised the market is trying to buy sterling into some brexit optimism, but that optimism needs to probably be curbed a bit and i think the fundamentals around the uk economy look pretty difficult heading into the end of the year. Jim, where is the optimism going to come for for european markets then if we weigh up some of the news of the background, any Brexit Developments any boost from u. S. fiscal stimulus it feels as though weve been stuck in a range the French Market struggled to get back a 5,000 points. Its been excruciating where do you see the genuine push that would take us back to high ranges, where we would be in catchup mode versus the u. S. Markets . I think the big difference with europe, and well see this in the coming months, is that the u. S. Frontloaded a lot of its fiscal policy, which is why youre seeing so much concern around the difficulties of this latest fiscal policy in europe, the fiscal policy has been slower, but steadier. And as we get more fiscal support heading into next year, that should provide at least a relative outperformance story in europe but i agree, its been surprising how negative the market has been around the European Growth story. It certainly hasnt been great, but it hasnt been quite as bad as markets seem to think and jim, just finally, can we talk about event risk in some of the u. S. Banks today weve seen as you were mentioning this blue wave theory that could be positive for the banks with any steepening of the yield curve, but the banks are giving us a show and tell this week on the report cards weve had about a 9 bounce in the banking stocks since the start of october versus 3 in the wider market do you think theres a chance of either a selloff or further gains this weekend on the back of the news flow well, listen, i do think the underlying fundamentals for banks heading into next year are better so, obviously, the crisis has created a lot of asset problems at banks, but the truth is, banks are far better capitalized than they were back in 2008. And as we move away from monetary reliance than steeper reliance, we could see steeper curves and that could be supported for banks. I would hope to see the trend weve seen in the last few weeks continuing through next year Jim Mccormack with us, global head of desk strategy at gnat west the ewian has treated from 17month highs after the peoples bank of china scrapped the reserve requirements for banks when trading in Foreign Exchange contracts Financial Institutions would be allowed to cut the returns from 20 to zero, removing a safeguard against depreciation this latest move by the Chinese Central Bank certainly tempered the recent rally in the u. N. We saw it pulling back from 17month highs investors retreated from their long position. So the pboc said it would scrap the reserve requirement altogether for forward trading starting from today, meaning Financial Institutions would no longer need to set aside cash and essentially getting rid of the rules that made doing this more costly. Previously within banks and Financial Institutions did need to set aside 20 as forex risk reserves this was a rule that was brought in two years ago in an effort to stabilize the rem b at a type the u. N. Was under some trade tensions the pboc says this latest move, that makes it cheaper now to short the u. N. Comes as the forex market is remaining stable and has done since the start of the year we have seen the u. N. Gain more than 6 against the greenback since may. And last friday marked its biggest oneday percentage gain since 2005 this has been partly put down to the pace of the economic recovery in china, which has been faster than other parts of the world, as part of this firstin, firstout story. Some economists have pointed out that chinese authorities havent got in the way of the u. N. Strength, particularly at a time when chinese leaders have been really promoting this socalled dual circulation strategy, which am aims to prioritize supporting the domestic economy and rusie i reducing a reliance on exports with some of these external pressures like the virus in the United States. But this could be a sign now that chinese authorities may want to slow down the pace of the appreciation but its only said to be a minor sign of concern. Economists have actually said that the fixing this week will be significant and more telling in terms of whether chinese authorities actually do want to hit the pause button on the u. N. Strength in sydney, im sam valles, back to you more cities are placed on to maximum letter be sure to tune in term with olaf scholz. Well be right back. For skin as alive as you are. Dont settle for silver gold bond champion your skin youre watching street signs. Let me take you to airbus today as we see a slight pop in the share price. The eus new trade commissioner has called objen the u. S. To ree retaliatory trariffs on over 70 billion of products. The u. S. Levees on eu goods were imposed last year after the wto confirmed illegal subsidies were granted to european aircraft manufacturer airbus. Trade chief has called for a settlement between the yearslong dispute between the u. S. And the eu over the giant and boeing moving on to iag which has replaced the boss of british airways. They have put sean doyle into the job, taking over from alex cruz the move comes as part of several Management Changes enacted by luis guego as the group struggles with the impact of the pandemic and the slump in travel and the stock price traveling weaker today, as you can see lets move on tos astrazenea which has received phase iii trials with hopes that the british Pharma Company will be able to provide up to 100,000 doses by the end of the year and the stock price climax positive, about a tenth of a percent positive the British Government today will unveil fresh local lockdown measures for england, with liverpool set to see the tightest restrictions. The Prime Minister will present the latest changes in the commons before giving a press conference in downing street this evening uk communities secretary Robert Generick defended the curb all the number of cases are rising rapidly across the country, there are still huge variations if you go to north norfolk, the latest statistic shows that the number of cases is around 19 if you go to manchester, its well over 500. So it is right that we pursue a localized approach that must be the way forward because none of us want to see a return to blanket National Measures that would be the alternative. A partial curfew has been introduced in berlin and frankfort over the weekend to curb the spread of the virus the german capital has reported 400 new daily case with chancellor merkel saying there is cause for concern annette joins us with more as we get set up here in the uk for more restrictions, walk us through what it looks like there in germany the cities are all implementing their own measures, but in general, the measures are Wearing Masks in public, having curfews when it comes to restaurants, and also to limit public and private gathering to if your city is in maximum alert level to 25 people and even 10 people when it comes to private gatherings thats for now, what we have in terms of restrictions. But Angela Merkel on friday was also saying that if those restrictions are not in terms of no infection rates then of course, nothing will prevent them from doing more because one thing has to be is the ultimate aim to get the infection rates down and to actually not going into a scenario where we really have exponential growth rates but it comes to the infection development. Over the weekend, the infection rates have calmed down, but that is what we have seen also earlier. That could be because of statistical biases in terms of of registering those infected over the weekend so one needs to be we need to wait, i should say, until we get some new numbers from the week one thing is clear that i guess germans are very much aneuroed about the fact more restrictions are here to come when i speak to people, the people are expecting that we also see more in terms of restaurant s closing again and also more travel restrictions. We have travel restrictions already in place inside germany. If you come from a risk region, you have to have a negative covid test in order to be able to travel elsewhere than where you are based. Karen . Thank you very much for that, annette. Lets push on to