>> good morning from bloomberg's european headquarters. i am annmarie hordern. this is "bloomberg daybreak: europe." divide and conquer. u.k. prime minister boris johnson hopes to stamp out the virus region by region with new lockdown measures, but his top medic says the plans will not do enough. tech rally roars back. sincesdaq has its best a april, but futures are softer as johnson & johnson halt its

coronavirus vaccine trial. there are three weeks until the u.s. election. president trump returns to the campaign trail in florida. president trump: now, they say i'm a mean. i feel so powerful -- i'm immune. i feel so powerful. i will kiss everyone. i will kiss the guys and the beautiful women on the everybody -- and everybody. i was just -- will just give you a big, fat kiss. >> good morning. manus cranny is off on holiday. it's not even winter and england is introducing lockdown measures, including closing pubs. as the rest of europe, the united states deal with the resurgence of cases, wall street closed higher, with the nasdaq having its best athans april. all of this has me wondering -- it's best day since april. all of this has me wondering, are financial markets diverging

from reality? johnson and johnson halting its covid vaccine study. s&p 500 futures under a little bit of pressure. msci asia relatively flat. the hang seng index has not traded at alternate due to a typhoon -- at all today due to a typhoon in hong kong. we do have the euro-dollar trading around 1.17, so i stronger dollar, a little bit of weakness on the euro. nymex crude below $40 per barrel, this comes as we have more supply concerns. u.s. 10 year yield, .76%. treasury market back open. we are seeing a steepening of yield curve. market is pricing in more fiscal aid at some point. the pandemic front and center once again. johnson & johnson is temporarily

halting its vaccine study after clinical trial participant experienced an unexplained illness, the second time that has happened to a front runner developer. boris johnson has closed bars and pubs in the worst hit areas of the country to control the resurgence, though his top health advisor said it will not be enough. >> i am not confident, nor is anybody confident, that the tier three proposals for the highest rates, if we did the absolute base case and nothing more, would be enough to get on top of it. what we can see is that we need to go further, or these rates will continue to rise. international government executive editor joins me now. as i said, we are not even in the winter yet. it is still autumn. already, we are seeing lockdown measures make it back into our lives. this does not come without political repercussions, does

it, for boris johnson? >> that's right. interesting thing is that you are seeing governments across europe grappling with this. it is not just in the u.k. things are getting bad again. in the u.k., it has become articulately difficult politically. not only is boris johnson and grappling with local leaders who are saying hang on, we don't agree with these measures, they are too stringent on us. his own tories are sink, you are not consulting with us enough. you are still looking to impose these decisions on us. today, we are going to see some questioning of him in parliament. there will be two opportunities for tory mp's as well to question boris johnson over his strategy. there has been a high level of confusion over what these measures might be. tiers ofave three

which people say are still quite confusing. even some of boris johnson's mp's being questioned have said they are not quite sure what the rules are. it's difficult to expect the public to know what those rules are and to meet them as well. >> i think a lot of people were confused yesterday, at least where i live in london. do we know what's going to happen with london yet? we know what is going on with liverpool city. they are on a very strict high alert. what's happening to london and surrounding areas? >> there was not an announcement on london yet. there had been some talk that there might be. some areas of london are flashing quite read in terms of the area of risk for covid. there was no announcement. at the moment, gatherings limited to a maximum of six people and pubs and restaurants need to close at 10:00 p.m. level two has further restrictions. that did not happen but it is

obviously being discussed. you can see from that report that came out from the scientific advisory group saying they were considering even a short break in national lockdown. needed.stuff is that's are pointing towards further restrictions within london itself. >> that level two, that means people would be banned from mixing indoors with other households. the very high level means pubs and bars will be closed, a tighter ban on mixing. school and retail remain open throughout. bloomberg's international government executive editor, rosalind mathieson, thank you so much. joining us is jim mccormick, global head of desk strategy at natwest markets. thanks for joining me. i want to start with our question of the day. are markets underpricing the impact of the pandemic? jim: listen, i think it has been

a question that has been ongoing. i do not think there is an easy answer. the reality is that we have had an enormous amount of policy response, both monetary and fiscal. the truth is, there is parts of the global economy that really do look v-shaped. if you look at the global goods cycle, global trade, global housing, even some measures of employment have bounced back pretty sharply. i think we are probably a little bit expensive, strictly in u.s. equities but i don't think we are anywhere near as expensive as some people think. >> i know one thing you're interested in is fx. . volatility do you think. now -- fx volatility. do you think now is the time to buy fx volatility? jim: i think that one market that is a big winner is the fx

market and affects volatility. it is create -- xf volatility -- fx volatility. the only way for you to really reflect that is through affects markets and -- fx markets and ask ask -- fx volatility. >> your outlook on the dollar, you thought september, a lot of these trends were going to start to unwind. what do you expect in october? it is three weeks u the u.s. electionntil -- until the u.s. election. jim: i think in the election is going to be a speed bump in terms of being able to price big trends. what we do see is that clearly, the polls are shifting toward an overwhelming win by the democrats. if we do get that, we expect the curve to continue to steepen. the equity market is a big

question. it looks like markets are thinking it may not be so negative. >> the equity market is a big question mark. i wonder if there is a reluctance to resort to the draconian for lockdown measures -- full lockdown measures we saw in march. does that limit the potential that we could see on earnings? jim: you get a lot of headlines around second markdowns, but if you actually look at global mobility data, governments are not really changing all that much. there is a lot of scary headlines, but this is nothing close to what we had back in march and april. i think that's one of the reasons why the equity market has been able to look asked a lot of these headlines. >> but high-frequency data does show that, at least for the u.k., they are lagging, except for canada, behind all g10 countries in terms of high-frequency data and how much it is impacting the economy.

you don't think these new measures around liverpool city, potentially we could see the level number two coming into london and its surrounding area, you don't think this will have as much of an impact or a big impact on economic growth? jim: it's not going to have as big an impact as we had in this ring, but it matters -- the spring, but it matters. country by country, covid differentiation will matter a lot. the u.k. has not managed as particularly well. the u.k. has brexit uncertainty heading into the end of the year. i don't think you are going to see any country going back to where we work in the spring in terms of overall lockdown levels. >> i am glad you mentioned brexit. i cannot move on to anything else until i get your thoughts on where we are in the brexit negotiations. we had the self-imposed deadline supposed to come this week. what do you make of where we are?

jim: that deadline was never a genuine deadline. really, the deadline is december 31. you can come to an agreement sometime in december and still have this thing go through. we do expect ultimately you get a trade deal. we expect that deal to be a pretty skinny deal, so to speak. it really is going to be something that is very last-minute, certainly not going to happen this week. >> yes, certainly not. if it is a skinny deal, do you see further downward pressure on sterling? >> yes, i think that the market has placed too much emphasis on the binary question of do we get a deal? ultimately, you need to think about just what that deal looks like in the context of covid management that has not gone particularly well. ultimately,nk that we don't see anywhere near the upside in the pound that a lot of the market seems to be

thinking. >> this morning, we trade 1. 3004, a little softer on cable versus the dollar. jim mccormick stays with us. we will talk about the tech rally. nasdaq 100 rallies more than 3% in yesterday's session. has the whale returned? we will find out next. this is bloomberg. ♪

♪ annmarie: good morning. this is "bloomberg daybreak: europe." the nasdaq 100 jumped more than 3% yesterday and was in striking range of its all-time high. leading the gains, mega tech. apple surged more than 6% on the date. joining us to discuss this all is dani burger. what was behind the massive rally? dani: you could point to a few

news items to say this is the reason we have had such a big rally. apple ahead of its iphone lunch, we had twitter getting upgraded and amazon heading into prime day. we like to look underneath the surface. underneath the surface, you will see some indications of perhaps a nasdaq whale coming back. inions actions, -- other words. one indication, this was pointed out to me by andy brenner, both of the vix for the nasdaq and the index itself rallied. this happens rarely. vix, this one again is for the nasdaq, part of what goes into this stage is just options in general. even if they are bullish options being but, the gauge that will

read that is hedging, so that will move higher. that's one indication that this was led by call buying. the other indication that we have that this is really led by individual investors perhaps piling into techs, perhaps the retail crowd, we have seen call volume spike in single names. that blue line is call option for single names. on the bottom are the q's. it stayed elevated this entire year. that call option desire is not going anywhere. according to jp morgan, 40% of all option volume is from single name stocks. this indicates to us that we do have buyers in the market flocking to apple, amazon, google, microsoft, all the big-name tech, buying up bullish options, and perhaps helping these stocks have a massive rally yesterday. annmarie: thanks to dani burger.

potential whale back, or a number of them. jim mccormick is still with us. what do you make of this? areou think markets diverging from reality? or is it just of this options frenzy? jim: i think that if you look at the equity market, the tech part of the equity market that started the reversal back in early september, so i think as we start to come back from that, it's probably not that surprising. aztec continues to be the darling of this market -- as tech continues to be the darling of this market. you can question valuation as much as you want. tech has been a big winner in general from this. crisis. . that's probably going to continue. i'm sure there is a lot of flow going on in the news. got surprising that tech is starting -- not surprising that tech is starting to catch up

again. annmarie: this happened yesterday and we are just three weeks away from the u.s. election. polls are showing a biden victory, a potential blue wave. that may bring more corporate taxes, more regulation on tech. is tech not scared of this blue wave in the united states? jim: i think the tech regulation is what i would worry about. the truth is, if we get the blue wave, and let's be honest, that's what the numbers are suggesting, i would imagine on day one of joe biden'presidency, -- joe biden's presidency, the main priority will be on getting an enormous fiscal stimulus into the economy. the regulation on tech will come. ultimately, what the market sees is that there is a very big fiscal stimulus coming into the u.s. economy early next year and that matters. annmarie: certainly. at some point, everyone is pretty much sure we are going to

get this monster injection. there is another debate going on on wall street with goldman sachs single big, -- goldman sachs saying go big. when do you think it's time to rotate? jim: i think that if you dig into the biden program, there are clearly some big winners. obviously, companies that are linked to the climate should be fairly big winners. i think the injection into the economy should certainly be good for smaller companies. yes, i think if you are not sure what biden means for the overall equity market, you can be sure there are sectors you want to be in and sectors to move away from once that presidency kicks in. annmarie: there is this other debate where you see equities going higher, people starting to ngice in this blue wave, buyi

the rumor. if it is a biden presidency, do you think we will see a selloff in the market? jim: the thing i feel most strongly about with a blue wave, so to speak, is it's a bond market event. ultimately, in my mind, what we should see is a significant steepening in the u.s. curve on the back of expectations. what that ends up meaning for equity markets is unclear. the equity markets benefited enormously from the low rates that we have had over the past 6-9 months. i think the bond market will prove to be a check on equities, but not necessarily stop equities from going modestly higher. annmarie: that final potential steepening of the curve help -- will that final potential steepening of the curve help investors? jim: flat curbs have been a problem -- curves have been a

problem for financials for a long time. year high is at a four- already. judging from what we think will be the amount of bond supply coming next year, the curve has potential to steepen. that should be a modest positive for financials for sure. annmarie: you can see the spread on the screen. steepest level since 2016. jim mccormick from natwest markets stays with us. let's get to the first word news with laura wright. >> the conservation hearing for supreme court nominee amy coney barrett dissented into a clash over obamacare, the pandemic, and president donald trump. she cast herself as someone who puts personal preference aside, pointing to what she sees as a vital but limited role for federal judges. barrett says justices are not on the bench to make value judgments. hong kong scraps trading of stocks and bonds today after a

tropical storm prompted officials to close schools. gnal was set to number eight. trading in the city was last affected by the weather in august. the coronavirus pandemic will cost of the u.s. around $16 trillion, four times the cost of the great recession, according to former treasury secretary larry summers and fellow harvard economist david cussler. added the cost of loss-of-life and health to the direct economic impact. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie: coming up, morgan a blue sleep in the united states election would be most positive for european stocks. that's right, european. more on that next. this is bloomberg. ♪

♪ now, they say i'm immune. i feel so powerful. i will walk into the audience, i will walk in their and -- in there and will kiss everyone. i will kiss the guys and the beautiful women and everybody. i will just give you a big, fat kiss. annmarie: that was the president of the united states in a rally in florida. he is back on the campaign trail after testing positive for covid-19. and they say is safe to go back on the campaign trail. now on what a potential blue sweep could mean in risk assets. what are they saying? juliette: we are hearing from analysts, including someone from

morgan stanley, that it will be positive for european stocks. sweepay initially, a blue would see a little bit of a tick lower in the s&p 500 unexpected lower fiscal stimulus. then, you could see a bit of a buy in the dip coming. that would see a global rotation and where you could see that rotation is in the european markets, particularly in european banking stocks boosted by this expectation of further fiscal spending and upward pressure on bond yields. morgan stanley saying investors should have a procyclical bias in their portfolios. annmarie: also, in asia, i wanted to get your take on what is going on in hong kong. trading has been halted again due to the weather. juliette: yes, this is a very stormy time in hong kong. it is the height of summer and

heading into the autumn. we saw this happen in august when trading was halted in the stock market. it has happened again today. we heard early in the morning because the hong kong observatory had this storm8 signaled that they would halt the morning session. they halted the afternoon session as well for stock and bond trading. coming on a day when there is not much action in asia because of this down tick in u.s. futures. when we look at the action yesterday, there was quite a big spike coming through hong kong stocks.- in hong kong not much happening in terms of what they are missing out on in the hong kong session today. will see hopefully, we trading resume tomorrow and everyone is safe in hong kong. thank you to juliette saly in singapore. president donald trump returns to the campaign trail, saying he feels powerful.

after his recovery from covid-19. . . we discuss that next. futures andny nasdaq many features a little softer -- mini futures and nasdaq mini futures a little softer. this is bloomberg. ♪ - [announcer] imagine having fuller, thicker,

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since april, but futures are softer as johnson & johnson halt its coronavirus vaccine trial. there are three weeks until the u.s. election. president trump returns to the campaign trail in florida. president trump: now, they say i'm immune. i feel so powerful. i will walk into that audience, i will walk in there and will kiss everyone in that audience. i will kiss the guys and the beautiful women and everybody. i will just give you a big, fat kiss. the president of the united states back on the campaign trail. we have more in a moment. let's take a look at the price action. we are seeing futures adrift, even though yesterday we had a solid day on wall street. nasdaq having its best day since april. flat. futures roughly euro stoxx 50 futures relatively flat as well. we are in the green in asia pacific. we are up more than 0.1%. as juliette was telling us, the hang seng is closed due to weather conditions. we will have updates on whether

or not it will be open tomorrow. euro-dollar this morning trading around 1.18. a weaker euro against the u.s. dollar. nymex crude trading below $40 per barrel. this has to do with more concerns on the supply-side. bond markets back open today. yesterday, it was closed due to columbus day. as jim mccormick and i were just talking about, we are seeing that steepening of the yield curve. the market is expecting a fiscal bazooka. president donald trump returns to the campaign trail, boasting at a rally that he feels energized and powerful after his recovery from covid-19. this comes as joe biden holds a lead over trump in likely voters in michigan and wisconsin. for more, we are joined by bloomberg's john harney. thank you for staying up late for us. like me.u are a ram does this rhetoric mark a shift

from how the president has thought about the virus in the pandemic? john: well, yes and no. for the first time tonight -- it -- one ofe first time the first times, rather. i have heard him talk about people who have died in the pandemic. he has been criticized for not paying enough attention, showing enough empathy for people who have become ill, lost their jobs, and have died. he did that tonight. carefreeyed a sort of played,in that could be attitude -- that clip you played come attitude. he tossed masks to the crowd. he promised a vaccine that has yet to materialize, and warned that the -- warned against lockdowns, saying that the lockdowns were actually worse restrict the to

virus. made curiously enough , he has made this tour, hi recoverys part of his campaign. he has beat the virus on a personal level. annmarie: i've been looking at the polls. you can see the campaign agenda. today, he will be in pennsylvania. they have biden's chances of winning hitting a record 86.1%. i just looked at some of the other swing states, arizona, florida, michigan, north carolina, ohio, pennsylvania, wisconsin, biden is up massively in some of the states. michigan, 91%. these are all states that president trump won in 2016. how far should we believe the

polls? john: that's a very loaded question for the political class, journalists in the united states because of after what happened in 2016. donald trump was not expected to win at all commanded -- win at all, and did. the polls were not necessarily far-off but wrong in some of the states. majority ofwin a the popular vote, but lost in the electoral college. he's clearly in trouble. an incumbentime, president has enormous resources bring to the battleto -- to bring to the battle. you can be certain he will try anything and everything to get reelected. he has this week been

highlighting the confirmation hearings of amy coney barrett to the supreme court, which began on monday, of course, the hearings in the judiciary committee. he and his campaign are hoping that issue will energize his -- his supporters, and those who have been put off in the past, but have conservative leanings. annmarie: thank you so much for joining us. jim mccormick from natwest markets still with us. during this analysis, they pointed to the fact that few democrats, few pendants actually want to say, even though all the polls are showing a massive biden win, none of them want to say that that's going to happen. everybody is reminiscent of what happened in 2016. hillary clark showing me this incredible shark that shows trump is exactly where he was in

2016 on the polls. our markets -- are markets overpricing the polls? jim: the markets have tended to underpriced the polls, precisely because they have doubted the numbers because of what happened in 2016. we have said throughout the last three or four months that you should probably believe the polls more. there is fundamentally in the weeds of the polls things that show very different scenarios than what we had in 2016. i think there will be a lingering skepticism of a democratic sweep until we have all the information at hand. have been soumbers overwhelming that we have seen a small markets link. there is still -- swing. there is still more to go if the polls and that being right --

end up being right? annmarie: at what point do you start pricing in the blue sweep? jim: if i am an average market participate, i price that in with -- participant, i price that in with 100% certainty. the yield curve probably being the most visible sign of that. there will always be lingering skepticism until we see the actual outcome. annmarie: thank you so much for joining. jim mccormick, global head of desk strategy at natwest markets . ae world bank president says group of 20 nations should extend debt relief to the poorest countries through the end of next year. he told jonathan ferro that the pandemic has worsened inequality, with the developing nations suffering the most. >> it has already gotten bad. that's showing up in the numbers

and likely to get worse into 2021. one notable part of this global recession is the inequality of it. 08, there was a great financial panic. it hit people's stockmarkets and their bond portfolios and so on. it did not have as much affect on the developing world. this one is much deeper in the developing world and likely to deepen if there are further shutdowns in the advanced economies. one of the things our numbers show is that the advanced recession has actually been somewhat less severe than the estimates in june. thethe developing world, recession has been worse than what was expected in june, excluding china. china is in a bit of a recovery phase. the other developing countries still in a worsening recession. >> given what you are seeing

play out right now, and they used to be a stigma attached to asking this question, but i am not sure there is anymore. whether the cure for this virus and the approach from developed economies is worse than the disease? >> it's hard for us to judge. history will look back and try to assess. world, iforest in the covid is a problem, but it bigger problem -- a bigger problem for people is no jobs and increasingly this problem of food shortage, scarcity as incomes go down. one of the things that hit the developing world so hard is that the remittances got cut off from workers working outside the country. that might be across the border or in one of the advanced economies. they would be sending money back every month to their families. that got cut off rather suddenly. another thing is just of the

activity, the activity level of the world for many countries is down 10% from what it was a year ago. that means health problems for children, they are out of school, they are not getting vaccinations. ismany cases, malnutrition on the steep rise. >> we talked about the problem, there is a huge one. let's talk about how you are looking to remedy it or at least offset some of the issues. the debt services suspension is something you have pushed forward. it expires years anend. can you walk me through how long you would like to extend that initiative? >> we would like to extend in another year. it is only providing shallow relief. we would like to do much more. what this has done is the , inest countries should not this crisis, given the severity, starting last may 1, they were

able to stop paying their debt service, that means principal and interest, to official bilateral creditors. the richer countries plus china. they could stop those payments and the commercial creditors were supposed to join that initiative as well. that means banks and hedge funds, for example. unfortunately, they didn't. even the bilateral official creditors did not fully participate. so, the savings for these countries, we are talking about the poorest countries in the world, they are still paying their debts, in some cases. that i think should be broadened , and then also extended through 2021. annmarie: jonathan ferro in conversation with world bank president david malpass. let's get to the first word news with laura wright. laura: u.k. prime minister boris

johnson has announced bars and pubs will close in the worst hit part of england. the chief medical officer says local authorities will need to take more action to get the virus under control. in some areas, significantly more. bridgewater associates founder ray dalio says china has the upper hand over the u.s. on a range of issues. speaking at a conference, he said time is on beijing's side in the spat with washington and that the next u.s. administration will have to deal with china's continuing rise. he warned the tensions could spiral into armed conflict. side ands on china's it is not on the united states' side for various developments. i think what is going to be a difficult situation in the new destiny ision is the on the side of china growing and doing better probably.

laura: global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie: thank you so much. coming up, ready or not. apple is set to launch 5g iphones but the technology is still not ready for the masses in the united states. we will look ahead to that event today. stay with us. this is bloomberg. ♪

♪ morning. good 6:45 in london. this is "bloomberg daybreak: europe." apple is set to launch its first-ever 5g iphone at a virtual event today, but the technology is still not ready for the masses in the united states. joining us is alex webb. -- alice webb. what should we expect from the apple event today?

how are they dealing with this challenge with the 5g tech? 4 newwe can expect iphones today. with 5g all going to be connection. will not be5g thing really useful at all in the u.s. and in large parts of europe. this is really about china. china has got a very fast 5g rollout that is already available in much of the country. they are adding hundreds of thousands of antennas. i think that is what the 5g capabilities targeted at. annmarie: they are going back to these sharper edges on the corners. i think it's a generation five. why are they changing how the iphone actually looks and feels? alex: apple has always changed things up. it should make phones less

likely to smash the screens. slightly towards the edge. makes it a little more vulnerable to being correct. having a flat as -- cracked. having a flat edge makes it less likely. annmarie: i think i am one of them. i think a lot of journalists around the world are tired of phone screens breaking. we have another event today as well, amazon prime day. what are the expectations? i feel like with the pandemic, it has been prime day for a lot of people everyday. has gone from being the everything store to the only store. we are seeing uptick in amazon use. for brick-and-mortar retailers, the move of prime day from july to october is going to actually

steal the thunder a bit from black friday, when people might spend a lot of their money ahead of christmas and go into brick-and-mortar stores. now, some of the spending will be gobbled up by amazon prime day. shops.s for annmarie: disney shaking up operations, putting the focus on streaming. i wondered if this was always going to be a long-term plan or if the pandemic really quickened this decision up? alex: the pandemic certainly accelerated it. historically, disney makes a lot more money from theme parks than it does films. it needs cinematic release to get the largest possible audience for theme parks. healthynjoyed a very price ebitda multiple. that puts it more in the bracket

of netflix. they are concentrating on the streaming. that means it is hoping to justify that multiple and be looked at more as a growth stock than a value stock. annmarie: thank you, alex webb, getting up early for us. next, also coming out today, wall street's biggest lender's report third-quarter earnings. worse isnd, how much it going to get? we previewed the big banks next. this is bloomberg. ♪

♪ pres. trump: i feel so powerful. i will walk into that audience, i will walk in there and will kiss everyone in that audience.

i will kiss the guys and the beautiful women and everybody. i will just give you a big, fat kiss. ♪ that was the president of the united states at a rally in florida. it comes as doctors confirmed he has tested negative for the coronavirus and is back on the campaign trail. today, he will be in pennsylvania. wall street's largest banks kick off the third quarter reporting season. citi and jp morgan out with results. u.s. lenders have risen over 10%, a rare break from the deep underperformance during the pandemic. joining us to discuss is dani burger. are earnings figures likely to help build on market momentum or can they help undo it? >> we are expecting big banks to report a rise in profits. if banks can meet it come a they can indeed continue some of this momentum we have seen. these banks have set aside a huge arsenal of loan-loss provisions. so far, these sour loans we have

loans we have seen have been outstripped. banks are likely to have more provisions, but executives we have heard from have made it sound like it will not be as much as we thought -- saw in the first half. is that overly cautious or are loans actually getting worse? assuming it is just caution, this allows investors to dream of a time when they can start releasing some of these reserves. that will help underlying profit as well. annmarie: what sort of commentary are we expecting from citigroup and jp morgan executives today? >> one of the big parts we want to learn about is their commentary and numbers around trading figures. jp morgan we are expecting to be one of the biggest banks in terms of revenue from trading. they have really been the leader this year. jp morgan's cfo set a month ago ago that shemonth

expects trading figures to be higher this quarter. the other thing from these banks you want to hear about are cost cuts and job reduction. both citigroup and jp morgan have resumed reducing their headcount. the more idiosyncratic factors at both of these banks. for citigroup, it is the transition to a new ceo and some of the regulatory pressure and fines they are facing over risk control. for jp morgan, credit cards are going to be fascinating. it is obviously a big business for the bank. they have set aside some reserves to deal with souring loans. consumers not spending a lot on credit cards. in august, 56% increase over the month to month of handing out credit cards. that could really help jp morgan's earnings as well. annmarie: thanks to dani burger. also, this is what else you need to be looking out for today. 3:00 p.m. london time, andrew

bailey will appear before a house of lords committee and is expected to talk about the outlook for u.k. jobs. at 6:00 p.m., apple will launch its 5g iphone as the u.s. looks unprepared to really embrace the technology. we heard from our opinion columnist that this is all about china. all day today is amazon's prime day. amazon is about to test whether consumers who have taken to online shopping in huge numbers during the pandemic are willing to spend even more on this amazon prime day. that is your trading they had. that does it for me on "bloomberg daybreak: europe." up next, we have anna and met taking you through the open -- matt taking you through the open. we had a pretty positive day on wall street. euro stoxx 50 futures unchanged but ftse 100 futures up, alongside dax futures in frankfurt. one thing we will be looking out for, anymore restrictions coming. chief medical officer says boris

johnson's new steps to quell an infection probably will not be enough in the worst hit spots. we are still waiting to see if london goes anywhere on that tier. stay with us. this is bloomberg. ♪ so you're a small business,

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>> good morning. welcome to "bloomberg markets: european open." in londonedwards alongside matt miller in berlin. matt: good morning. today, the markets say you win some, you lose some. investors weigh a potential setback in the search for a virus vaccine amongst a big rally in tech stocks over not. here are your top headlines from the bloomberg terminal.