and be healthy. get off the floor and get on the aerotrainer. go to aerotrainer.com, that's a-e-r-o-trainer.com. ♪ >> good morning. it is 6:00 a.m. in the city of london. this is daybreak: europe. europe on pause. france's month-long lockdown comes into effect. merkel says the eu should have acted sooner. totle doubt the ecp is set prop up more stimulus in december as the virus stimulus triggers fresh measures. get gdp data across the continent.

and solid numbers in tech are not enough to keep investors from selling, dragging down u.s. equity futures. good morning. over the past 45 minutes, we have seen a leg lower across equity futures as well as across the msci asia pacific, even though yesterday wall street did close higher, it was a relatively flat close in europe. s&p 500 futures down 0.9%, and the nasdaq 100 futures extending the losses past 2% this morning. clearly the stabilization yesterday has not been enough. it has been a difficult week in the markets. the tech overnight did not meet expectations. apple down more than 4% in after-hours trading. it was about expenses and costs for apple in china. twitter extending losses more than 17% in overnight trading.

for investors. alphabet, one bright spot in big tech, up or than 6%. u.s. 10 year yields at 80 basis points. this was the close yesterday for the german bund market as well as the 10 year italian btp's. christine lagarde gave a clear signal -- more stimulus is on the way and investors are loading up on european debt. 1.17,ro-dollar below further easing weighing on the euro-dollar. we have german breaking news, coronavirus cases exceed 500,000 after a gain of 19,409. cases continuing to hit new records across the continent. records in italy and spain yesterday. global cases are topping 45 million. france is now in a month-long lockdown as the eu's largest

economies have varying measures to fight the virus's spread. in a have found our self dramatic situation. to challenges to public health and the growth prospect of the euro area. what was the best strategy brought down the elderly, the most vulnerable, test, alert, protect, none of that is sufficient. >> obviously there are people's choices. there was no restrictive measure that has no impact. >> we are wondering when we are going to come out of this crisis, but now is the time for patients, for determination, and for discipline. our editor in germany joins us. that is what they said to you publicly, but last night they had a closed-door virtual meeting. what was the message from angela merkel? >> the message is the message

she has been delivering domestically, that leaders have to step up, tighten down, and they reacted too slowly to the crisis. she should look in the mirror, but because she talked about political realities that delayed the steps. strugglingelf was with that in germany, where she struggled to get the 16 state leaders on board until wednesday, when she agreed to a month-long lockdown, come into effect on monday. annmarie: what about the rest of europe? we have france kicking off their lockdown measures today. will this force the likes of italy to go back to dirk honey and measures? totri-county and -- draconian measures? chris: everybody has seen these waves, and they're probably going to be next steps. italy has been saying they will

use next week to debate where they go next, but it is going to be hard for any country to tighten measures in the coming weeks given the numbers we are seeing. but what we have seen from germany and france so far is what they are calling a partial lockdown, or lockdown-lite. they are trying to limit social contact as much as possible, restricting bars and restaurants , the social activity, but keep economic activity going. that means keeping schools open, keeping daycare is open, and that means the bulk of the economy can continue to run, so it is less debilitating than the lockdowns in the spring. the question is whether those are actually going to work. it will take time before we get those results. annmarie: and we are not even in the winter yet. many scientists are saying it is going to get worse. chris reiter waking up for us very early in germany. now ecb president christine lagarde spoke yesterday following the policy decision, and she says the economy is

losing momentum faster than anticipated, clearly because of covid. policymakers are expected to agree on a new monetary package in december. >> activity and the services sector has been slowing visibly. consumers are cautious in the .ight of the pandemic the impact of the second wave on banks is going to depend on the bank spot. let me tell you something. the european central bank and the whole euro system will be extremely attentive. we are not going to just stand still. all theoing to use instrument's we have with the entire flight ability we have -- the entire flex ability that we have -- flexability that we have. expect the risks we are

seeing that circumstances will morant the recalibration and the implementation of this package. annmarie: joining us now is fabiana fedeli. good morning to you. we are seeing this selloff in the past 45 minutes take a bigger leg lower. i a lot of angst in this market. this comes as france enters a lockdown. monday it will be germany. what are your initial thoughts on all of this? fabian -- fabiana: good morning to you. it is true that we are going back into lockdowns, but this is a different type of lockdown. the economic activity is still working. billy we went two steps forward in the third quarter. we are going one step backward.

we have had a setback, but this is not going to stop the economic recovery ahead. we are closer to the end of these uncertainties then we are to the beginning. we are closer to the results of the u.s. election, whether contested or not. we are also closer to not only a ,accine, whenever that comes but we know better how to deal with covid. yes, we have had a setback, but if you ride this one out, i think you are getting ready to have a macroeconomic pickup in the next few months. annmarie: it is interesting that you say that we have learned a lot. i am struggling to see exactly how much we have learned, given the fact that countries are going back into lockdown sooner than the scientists were expecting. we are not even in november or december yet, not even in the winter months, technically, and we are already seeing record

cases around the continent. do you think this, then, is the lowest point we are going to see, or is there going to be more to the downside in the markets? fabiana: we learned to deal with this very quickly. in march or april, a lot of governments were not sure what they had to do. they took steps very slowly, and we are still paying the consequences of that. i am not saying it is going to be rosy over the next couple of months. we are going to have heart conditions, but we also know that economies are not going to completely lock down. we also know that we are getting closer to a resolution. we have more therapies, a couple of them, including the one that actually cured president trump, in stages of approval. some of them have already been approved. we are also closer to a vaccine. we are going to go through tough times, but looking at this as a

long-term investor, you know that eventually we are going to come out of this in the next -- by the end of the year, beginning of next year. annmarie: right, if you are long-term, but if you are short term, if you are just waking up this morning, a serious acceleration to the downside. futuresago, s&p 500 extending beyond 2% lower, catching up to where the nasdaq 2.5%.wn nearly at thele bit of reprieve close clearly not doing enough. bit.arkets are spooked a maybe this is just in the short term. i want to ask you, are you a buyer on this dip? fabiana: it's funny, manus yesterday on the program said now everybody is going to come on the program and say, i have to buy on the dip. if you are short term, clearly we are not going to have any good news over the next few weeks until we know actually

what is going to happen with the u.s. election results. they might actually not come early next week, as we would be usually used to. until we get some good news, this market is going to stay very volatile, and we should expect some tough numbers coming out. but the first good news could be coming out of u.s. elections, if we get some clarity, no matter what direction that is, and the next good use. come on their abuse -- the next good use could come on therapies for covid or these lockdowns which might be able to stem the outbreak from where it is now. fidelity --py of fabiana fedeli stays with us. we are accelerating this selloff we are seeing this friday morning. it has been a messy week in the market, quite brutal.

his --down 2.5%, as in and the s&p 500 futures lower this morning. coming up, don't miss our interview with the governor of the central bank of austria, at 7:30 a.m. u.k. time. next, the tech giants low a third quarter. we discussed big tech earnings next. this is bloomberg. ♪

annmarie: let's get a quick check on what's going on in the markets. we are seeing markets really fall out of bed. s&p 500 futures extending losses past 2%. 2.5%, 500 futures down and the dax down 2%. having a little bit of deja vu

since the world was first dealing with economies going into lockdown. you can see the nasdaq extending losses after we had big tech results yesterday, the world's largest big tech companies notching a blowout third quarter. it still was not enough to get investors to buy into the end of the trade day. joining us to discuss is dani burger. there were some decent numbers in there. dani: not only decent numbers, but taken as a whole, really huge beats. there are flies in the ointment. you have apple beating on their earnings thanks to macbook, thanks to services sales, but iphone sales missing for them. then you have companies like google, the stand out, rallying about 6.5% out of their digital ad spend. facebook also beaten, but issues like spending on coronavirus and uncertainty weighed both them and amazon down. dani, looking at the

board, apple down 4%, facebook down 2%, twitter down 18% overnight. why are investors sending these stocks lower? dani: there are two parts to this. one is very much a tech story. you and i have been talking about this forever, that tech is just too frothy. investors want to see perfection from these tech companies. it is not just tech, it is earnings as a whole. if you beat your earnings this season, you are getting punished the most on record. companies who missed their earnings estimates were down 5.5 percentage points. historical average is 1.5%. line at theyellow far left is what it looks like. you are mostly flat. stock valuations as a whole are

very high, and investors want to see companies immune to the coronavirus pandemic, because that is front and center at this moment. face it, most companies are not immune. investors want to know if the third-quarter results are just a temporary blip, and are things going to get worse from here on out? ismarie: what dani saying is not helping nasdaq 100 many futures this morning. they are down more than 2.5%. s&p 500 futures down more than 2%, alongside european equity futures. it is not shaping up to be a happy friday morning in these markets. fabiana fedeli is still with us. this tech bubble, what is your take? when i: if you remember, was on the program with you a few weeks back, we talked about our strategies. we had already started taking

money off the table from big tech in the u.s., and that was based on a number of reasons. first of all, devaluations in the u.s. market, where we saw there were a number of companies with much better valuations and still good fundamentals. also, the fact that if you go ahead, these expectations are going to hit a road bound come bump,ause -- a road because second-quarter numbers are going to be difficult for them. we cannot expect them to deliver these kinds of growth levels for the next year or so. this is exactly what is happening right now in the market. the breath of the market is increasing. it is not necessarily that investors are only taking money out, but they are putting money in other stocks that, in their own right, have decent fundamentals and that are valuations -- and better valuations. annmarie: if you take money off of tech, where are you putting

that, sector specific? fabiana: from a sector standpoint, we have put that money in sectors such as industrials, such as materials. we like specialty materials. we also like -- we spoke about that earlier on -- the sustainable investment theme, ultra renewables. those have been the areas where we have deployed. also, from a regional perspective, we have taken money out of the u.s., deployed money in north asia. that was early this year. more recently, we have increased the weight in asia and we are still running a smaller weight muchrope, where we very like the specialty material, industrial sectors. annmarie: i know you like north asia followed by europe. what in europe do you like now, given how gloomy the european economy is getting given these

fresh covid restrictions? fabiana: you have to have investment in there. in the shorter term, the european economies are going to get hit, no doubt. but if you look at it on a six months, one year investment horizon, i think some of these companies are actually faring very well. board, notross the even in one specific sector, valuations in europe are really undemanding. you do see the fundamentals are actually starting to improve. to stayhere is you need selective, because not all companies are coming out of this unscathed, and some of them will second, not survive the and if we ever have it, third wave of covid. it is a matter of being very selective. annmarie: exactly, fabienne a. third wave.

in europe, we are at the start of the second wave. we have to get through that. thank you for your time. --ing up, as we had to break, i want to take a look at what is going on in the friday price action. off s&p 500ng futures. nasdaq futures down more than 2% . this friday morning looking like it is going to be another risk off. this is bloomberg. ♪

annmarie: we are seeing markets selloff this morning. s&p 500 futures and nasdaq 100 futures down more than 2% this morning. it is not shaping up to be anything brighter in europe. from thernings out

largest cement maker, lafargeholcim. joining me is gone in such -- ensich, ceo of lafargeholcim. we are seeing cities go into lockdown, but you are actually seeing a resilient construction space. jan: yes, we have seen an excellent quarter. this is based on very resilient demand from our customers. in emerging markets, we are ahead of last year in demand, based on all the branded products we sell through distribution. and we have very strong demand for residential, building, and -- annmarie: where is the recovery happening? is this out of asia, or are you seeing it around the globe? : our volumes are up from

india, to china, two a lot of markets in europe and africa. also, in europe, we have demand on last year's level. how worried are you about fresh lockdowns we are seeing out of germany and france? jan: but we are seeing now is not so great. i think that governments are doing an excellent job to keep business alive, especially to keep construction alive. quarter threer results will continue into the remainder of the year. annmarie: the other big story is the u.s. election in four days. do you see any impact that might have if we get a change in the top in terms of infrastructure spending out of the united states? jan: i think the u.s. will launch a big infrastructure program, and we will see that whoever might win the race. annmarie: i want to ask you, is there any update you can give us

about that claim against lafargeholcim that has been admitted by the u.s. federal court in regards to your previous joint venture in cuba? jan: no, we have no update. it is a cross proceeding. we don't comment at this point in time. annmarie: what if the claim does go through? would you have to take a provision? jan: i think it is a minor claim. i am not so worried about it. annmarie: quickly, anything you are thinking about in m&a right now? jan: we are in an excellent position. if you look at our balance sheet, we have the strongest in the industry, and that makes us comfortable for any opportunity which will probably come up. annmarie: all right, thanks for joining us. -- jan jenisch, ceo

of lafargeholcim. this friday morning, although we stabilization on wall street and in london and frankfurt, we are seeing selling this friday morning. this is one of the worst weeks since march. s&p 500 futures down lower by 2%. dax futures cannot catch a break .his week, down 1.7% coming up, the other story we are focused on besides covid, four days to go, and we have an historic early voting turnout. we will discuss the u.s. election next. this is bloomberg. ♪

annmarie: good morning. this is bloomberg daybreak: europe. month-long lockdown comes into effect. futures down more than 2% in the u.s. morecb said to pump up stimulus as the virus resurgence triggers fish measures -- fresh measures. solid numbers are not enough to

keep investors from selling, dragging back down nasdaq futures 2%. a good morning to you. london.. in the city of 7:30 am in germany and paris. french economy numbers, grew by 18.2%. the estimate was for 18.2%. this came after we saw economies take a shutdown. to second lockdown is going shave off about 15%. we are only in october. let's take a look at what is going on in the boards. not doingrope, anything. asia-pacific down 1.3%. s&p 500 futures down 2%.

nasdaq futures cannot take a break. 2% this morning. let's look at what is going on after hours. we saw some heavy selling. amazon, down more than 1.5%. apple, it is about the iphones, down more than 4%. users not doing enough for investors. across assets, i want to take a look at what is going on in the bond market. themlose, you could see moving in tandem. christine lagarde giving a clear guidance. euro-dollar down below 18%. europeany something leaders want. not exactly going to help in the sunset. theyeason it is so low,

don't exactly like that. it is election day. 80 million americans have already cast ballots. a busy weekend of campaigning. one thing we are not going to see is stimulus. pelosi reiterated the need for further action. >> we need to stimulus even more so. the reason we had a better -- a better third quarter is because of what we did in the cares act. subsequent legislation for ppe that put money into the economy. is people are coming -- that going to wear off and we need another infusion. it is not a question of we do not need it, it proved it worked and now we need it more. annmarie: nancy pelosi in stimulus and gdp figures.

oxford economics put it well. record can and meaningless at the same time. joining us now, derek wallbank. left is a week and a day of campaigning. the trump administration, they are doubling down in iowa. mike pence stop there. white is he fixated in iowa right now? iowa is an interesting state. it is agricultural. of thetaken the backend trade war hard. trumpa state where subsidies have gone to farmers to try to blunt that pain. trumpalso a state donald really badly needs to win. if you cannot win states like iowa, that gets really bad really quickly. that is why he is going and doubling down on it. if you're talking to voters, you

are saying the same sorts of messages you might say to wisconsin or minnesota. which are also places trump is targeting. annmarie: i was looking at corn prices this morning. iowa, having one of the worst months since june. early voting figures, they are astonishing. of voter like 60% turnout. does this help either campaigning? imagine heavy banking of turnout helps democrats or at least that is the conventional wisdom. the early voting looks like it is skewing to the left. joe biden's banking a lot of his votes. if you are talking about this campaign, were talking about a segment of the electorate that skews to the right of the median. that is trump voters. voters,e of these shy

swing voters. that is who we are looking at. a lot of these harder biden voters, the folks who are anti-trump or provide an, have already locked in their ballots. is an important distinction people miss. we are not sitting here hearing these candidates talk to a representative sample of the electorate. so many of those on the left side have already put in their ballots. 95%arie: in texas, it is 2016. hawaii, above 100%. it is not just the presidential election we need to be watching. the senate race is equally important. it could tip the house and the senate. to watch ist race in iowa. for more on this, jennifer joins us. what are the key states we

should be watching? iowa and who else? is beings one that closely watched. as we mentioned, democrats could split the senate and away we have not seen. democrats hold a three seat majority. tight braces are happening and being watched because the republicans are not necessarily in a bad situation. iowa, joni ernst defending her title there. her seat there. she is a staunch trump defender. her challengerh there nearly, a rhodes -- race i am watching. my home town. between martha mcsally, in arizona, they assume the seat at the end of november because it

is the seat of john mccain. other races include south carolina where lindsey graham is. someone who is of course the judiciary chairman. has raised ar record amount of money. jamie harrison is tightening the race. we just don't know how that race is going to turn out. one other state i was going to mention, main. e. who voted no for amy coney barrett, she is defending her seat. those are a few of the races we could watch. if biden wins the white house, democrats will need three seats to take over the majority of the senate. if eitan does not take the white house, the democrats will need four seats.

a lot to watch in terms of the senate races. you so much.nk outlining whether it is going to be a blue wave or tied let's get to the first word news with laura wright. is seeing digital spending rebound. it is a slower pace than a year ago but a stark contrast from previous three months. youtube is the fastest-growing part of their business, bringing in about $5 billion. saysny's chancellor european leaders should have acted sooner to control the pandemic. sources have told us of her private comments. she says political realities stopped them from imposing reactions, but they will have to act faster in the future. france aiming to limit its contraction to 15%. that would be half the drop seen

during the spring. the finance minister reintroducing supports for businesses and money. global news, 24 hours a day. powered by more than 2700 journalists and analysts in more than 100 20 countries. this is bloomberg. onwant to get a quick check the markets. 6:40 am and london. selloff. pretty heavy s&p 500 futures, under 2%. the nasdaq futures, taking a bit of a hit. futures down more than 1% this morning. it's just 6:40 a.m., it has been a brutal week. as france enters a locked. turn., it is germany's a look at what is going on in the oil market. the ceo of london energy joins

us. this is bloomberg. ♪

morning, six: 43 in the city of london. we are down in markets. s&p down 1.9% futures. not looking very good in europe at all. dax futures down more than 1%. #to the downside. oil having a tricky 24 hours. the biggest monthly slide since march. autoe squeezing demand for

and aviation fuel as well as gasoline. that's get more from dani burger. >> when it comes to oil in new york, prices tumbling 12%. in london, they are trading at a may low. especially, the demand side with concerns over consumption. cases earning records. if you look at what is happening in the u.k., road fuel sales sliding. airline capacity is shrinking. election volatility does not help, either. you have the return of libyan supplies adding to concerns of a glut read this has hammered firms as well. exxon has become the latest company to succumb to that. that equates to 14,000 jobs.

not the only one who has had to announce job cuts as these companies struggle to preserve dividends. this is a trend we are seeing across all of the oil sector. let's talk to someone who knows a lot about what is going on. thank you for joining us this morning. you did beat estimates but the picture is looking gloomy. and france, lockdowns and germany. what are you seeing right now in the demand side? >> we are seeing the second wave of the pandemic come to europe and the u.s.. when it comes to demand half has not been a good year at all.

the second pandemic is slowing down the demand side. in 2020.t it is the importance is for companies to show resilience for oil prices. that is something we control. you look at the results of energy for the last nine months, we generated free cash flow. that is a key focus for any leaders of an oil and gas company today. trade 37 and $.40 on a barrel of brent. getting very close to your break even. how are you going to survive rent falls below 35 dollars a barrel. >> we will break even. phase two, we would be below $10. close one of the lowest

breakevens in the industry. we do not control the market. capacity tol our produce the lowest possible cost per barrel. being as efficient as possible. today, even if the oil price would go below $30, we would continue to generate free cash flow. this has highlighted in the future, you have to be really resilient to low oil prices annmarie: annmarie:. -- prices. annmarie: what does it mean for investment? will -- the world hasn't fundamentally changed. 80% of the energy mix is coming from fossil fuel and they have

been very low investments due to the crisis. you would see eventually the men would pick up again. shouldent, investors focus on the energy company, the most resiliency. there will be a day once the pandemic is beyond us where demand will pick up. oil prices will strengthen. the energy stock would be a very attractive place to be. a verye: we have important opec meeting in early november. did that hit your production? norway, as you stated, they reduced production. like all the other producers, yes, this is valid until the end of the year. despite the fact we had to reduce will production in the two main fields, we still generated over $500 million of free cash flow. i would sayt us but

at a minimum. some of the meetings, we have seen contrary to what we saw in march, opec is much more disciplined. have been playing a balancing act in this environment. we have seen the oil prices relatively stable before the second wave. we see pressure in the oil prices due to the concerns of demand. i am pretty certain once the second wave is behind us, we will see demand picking up again. annmarie: i am looking through your release. you say you announced your intention to stand down in 2021. what is your advice to nick walker on how to do with the will market where $40 brent is the normal? nick toreally happy for

take the reins. the company is in great shape and nick has been a fantastic beenn in terms of what has working for us. do continuing what we have done. prices.resilience to be one of the lowest cost, lower emissions. i think nick will do extremely well in the coming years. annmarie: best of luck to you and your future. alex schnider. thank you for joining us. doing very well, $37 a barrel. amazon, facebook, and alphabet. ofant to get a quick check where we stand. -- s&p futures

down 2%. it has been a brutal week for the markets. atis not stopping here friday. ♪

an hour awayt over from the european cash open trading. nasdaq, futures down more than 2%. we are seeing red arrows around the european continent. what else you need to know, after the record feeding the -- gdp, look for record numbers out of the u.s.. issued forngs are finland and romania and by moody's for denmark and the netherlands. mobile reports later today. you have to watch out for what

exxon has to say. a bloomberg scoop, they are slashing 15% of their global workforce. that is about 14,000 people. staying with earnings, let's dig deeper into tech earnings. blowout third quarter from facebook, apple, but we saw shares drop. serious buses in after hours trading. matthew, what is behind the estimate beats? big rebound in online appetites. demand,seen consumer basically, spending with the ises of facebook and google a surefire way of generating -- people were kind of expecting a surge. even those heightened expectations proved to be a bit conservative. is a standout and

a blowout. overnight, the shares fouled. different reasons for each company. what are investors concerned about? theseis a mixed bag, why stocks fell. if you look at amazon, it is classic caution about what are they spending their money on. also, they are planning to spend a lot of money making sure their employees are safe. shift being costs are going to go up. how much money they are actually making out of everything. facebook flagged a number of

uncertainties. not the least of which is regulation. data privacyging and the new operating system. online techig platforms. a few different things going on there. so much forke you joining us. breaking down what we saw overnight in the tech space. those tech earnings not helping what is going on. europe moving into lockdown. monday, it is germany. italy may be weighing some. this is good news. stocks hitting the worst week since march. you remember that march selloff. euro stoxx, 15, down more than 1.5%. the dax, 1.8%.

joins me next, it is the european open. this is bloomberg. ♪

jonathan: from the city of london for our audience worldwide, good morning. i'm jonathan ferro. the countdown to the open starts right now. european lockdown sending stocks to the worst week since march. president lagarde setting the stage. tech tightens worried about the uncertainty on the horizon. let's check out the price action 60 minutes away from the opening bell this friday morning. futures lo