per crunch, push ups, aero squat. it inflates in 30 seconds. aerotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com. ♪ manus: from bloomberg's middle east headquarters in dubai, i am manus cranny with anna edwards in london. it is "daybreak: europe." >> we are very far apart on some key things, but there is hope we can keep talking to see what we can do. the u.k. certainly will not be away from the talks, i think

people expect us to go the extra mile. shot. another bryce johnson and ursula von der leyen extend exit talks. the pound jumps. looking at positives, u.s. futures aim ahead of the first deployment of vaccines in the u.s.. a bipartisan stimulus. unveiled. also be and germany enters a hard lockdown this wednesday, as it are the overtakes the u.k. for coronavirus deaths. anna: good morning, everybody. welcome to "bloomberg daybreak: europe." edwards. manus, it is great to be on the program with you as we perhaps see some brexit progress on the weekend, defined as a continuation of talks. still locked in the same conversation, the trade-off between access and rule alignment. a level playing field

perspective. interesting to hear you play that clip of david loom talking about the pound and how nobody cares about the details. in the markets command that might be the case. but for businesses in the u.k., some of the details included in that deal, if we get one, will be crucial. manus: absolutely, and i just wonder to what extent, david was perhaps slightly tongue-in-cheek with that nobody cares, but you are right, there is a potential for businesses to deal with serious issues at the ports, logistics, etcetera, is very high. if you look at the language, i was struck by boris johnson when he said, we are very far apart. there are serious issues that separate us. there is a clarity and a simplicity in the wto for brexit, but bloom, encapsulates, i think the mood in the market. violence is back. he said, "sex and violence is

back in the pound." is it game theory or is he trying to save face? seem to bearkets do a seething that this is part of a negotiating tactic. investors are sending the pound higher. stronger across the u.s. that against the u.s. dollar and against the euro as well. another thought into the mix, we have the bank of england meeting on thursday and that could be interesting. if we have a deal, will it be a dell meeting? if we are still talking, they may express readiness to act. if we have no deal there, will really be a big focus on the bank of england and what they can do. this is what we have on the pound, 1.33 is where we trade, 8% up against the u.s. dollar. euro-pound also seeing movement. ftse futures are a bit sluggish, to the downside and 0.1%. there are other factors at play this morning.

the talk of the stimulus still in the united states, and the plan for the rollout of the vaccine stateside. all of that helping to lift morning. this even in europe we shouldn't lose sight of the fact that we have germany going into tougher lockdown measures this week. looks to discuss this morning. let's talk more about the brexit talks, they have been extended. u.k. prime minister boris johnson and european commission president ursula von der leyen agree to go the extra mile and keep working on the deal. the pound jumped on that news. maria tadeo is in brussels. they will continue to talk. morning,n for us this does it get us any closer to a deal? i understand the u.k. put forth a new proposal over the weekend for a level playing field. we will see if that can move things. maria: that will be the key, does it take us closer to a deal? that is always hard to say, but it avoids the no-deal scenario.

a lot of things could have gone wrong sunday. another deadline passed. if the prime minister was serious about walking away from the deal, he could have done so already. we also have new language from the european commissioner, who also said, we get we are all exhausted from this, but we want possible.eal if it is going back to your point on the level playing field, the tone has changed from brussels coming out of that summit. are some of underlying was clear that everyone here gets the u.k. will become an independent, sovereign country after brexit. that is clear to everyone. when it comes to the market access, it is something that e.u. could change. so it is not about enforcing the about tweakings the market access if they move away from the european standards. that is something that can get that to the sovereignty that the prime minister is looking for, that is so key to getting a deal

politically. just seeing some of the tariffs could potentially come into play on the wto. maria, what does the extra mile mean? do we have a time limit? what can we expect over the next 24 hours? maria: manus, we don't have a timeline, and we don't have another deadline coming up. some in brussels actually look at that as good news, the fact that there is no time pressure to go to another deadline. in terms of what to look out for in the next few hours, michel barnier will be briefing the time.7 at 7:30 u.k. it will be interesting to see the reaction from the french, they have always taken a tough line on the brits. i will also point to this line from the prime minister, still insisting that if it helps me to go to another country, to brussels,, paris, berlin to speak to another leader, i am

happy to do that. the point is emmanuel macron and angela merkel do not want to see him yet. they say you need to go through ursula von der leyen and michel barnier to do that. manus: ok, let us see where he travels to. maria to jail, our reporter in brussels. our guest host is the global head of macro fixed income and currency research at this bank. thanks for joining anna and i this morning. says sex and violence is back. the pound is up this morning. are you hopeful there will be a deal? >> i think for the last week or /40.we said before 60 now we say 50/50. too close to call. a bit of relief in sterling. but a lot of people may be thought there was a deadline here on sunday, and that seemed

to have been postponed. we don't really know where the deadline is. it is also likely that even if we go beyond the third of january without a deal, they will continue to negotiate. anna: so they continue to negotiate -- good morning, thomas. you suggested 50-50. bit.s changed a little are you making preparations in terms of your portfolio for a no-deal brexit, or have you not got to that point? thomas: we have said until one week ago, we had taken 60-40 in favor of the deal and have 50/50. to it is very difficult to say. the way we look at markets is, you are right, there should be implications for sterling. i expect the euro to go for .95 or .97 in case of a no-deal. it could drop down to .67 in the case of a deal.

but it will not be that significant, because it is the most critical event for the last four and half years. normally the market is able to handle that. there will be some volatility, but it will be brief in the broader market. manus: this is something anna and i were chatting about this morning when looking at the pricing of the bank of england. anna brought up this chart which is at the market is pricing in a cut from the bank of england in january. in a no-deal scenario, you say it is perhaps priced in. with a push the bank of england into negative rates or just -- would it push the bank of england into negative rates or just leave it at zero? jordan: i think it would be negative. that is the reason for u.k. markets, there should be a significant implications. say even with u.k. markets is that there is this risk that we don't have a deal

on the third of january, that they continue to negotiate. the market still has to look at that. maybe we will have a deal at a later day. it makes it tricky for the market to handle this. it is not completely binary because they may continue to negotiate. but i think the bank of england will cut into negative if we have a no-deal brexit in january. anna: you said there will not be too much fallout outside the u.k., it has limited relevance outside the u.k.. but do you have any nervousness around interest rates for markets, for example the bank of england suggesting last week when talking about financial stability, that maybe the e.u. has not matched the bank of england in terms of preparations in financial services. do you fear maybe the continental players might miss out? what is your sense? thomas: i doubt. but you are right, there -- you are always a bit nervous about something is missing.

this is a huge event for the u.k. it is not a huge event for the broader european markets. of course there will be volatility around the date. what is important, you flag that earlier in the program, is for smaller businesses, there would alterations.t that micro-site, you can say there will be clear implications. but that is not a real economic impact, in my view. anna: thomas stays with us. let's get a first word news update. laura wright has that here in london. laura: good morning. u.s. government agencies have been hit by hackers. fire i saidy firm the attack came through an update for a widely used i.t. software. it is reported that the hackers backed by the russian government are suspected of being behind the attack. the u.s. says it is aware and is taking all the necessary

steps. iran plans to double oil production in the next year as the country anticipates a loosening of u.s. sanctions under president-elect joe biden. extra exports could cause problems for opec, which is trying to keep away the downward fall of prices. u.k. ass overtaken the the european countries with the highest number of covid-19 deaths. italy is among the countries hardest hit by the pandemic, with more than 1.8 million cases. the european council president. , expects the first vaccine to be approved in the e.u. in the coming weeks, maybe even before the end of the year. british spy novelist john like died at 89. a former officer with mi5 and mi6, he wrote more than 20 books, tales of treachery,

betrayal, and duplicity. the "new york times" was described him as the preeminent spy writer of the 20th century. global news, 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. laura, thank you very much. coming up on the program, a vaccine rush. u.s. hospitals are preparing to receive the first shipments of the pfizer vaccine just days after its authorization for emergency use. we have that story next. ♪ this is bloomberg. are you frustrated with your weight and health? it's time for aerotrainer, a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form

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manus: it is "daybreak: europe." i am manus cranny in dubai and anna edwards in london.

germany is poised to enter a hard look down. employees and schoolchildren will be urged to remain home. nonessential shops will close. in the u.s., hospitals are preparing to receive the first shipment of the coronavirus vaccine. health-care workers and nursing home residents will be prioritized. cases are surging, with total anna. nearing 300,000, anna: u.s. lawmakers are planning to unveil it an hundred $8 billion coronavirus relief plan, but doubts remain over whether congress will pass it. senator joe manchin guarantees the hard-foot negotiations will produce results. sen. manchin: we were on the call yesterday, and we will get on a call this afternoon to finish things up. we will have a bill for the american people tomorrow, $908 billion. anna: senator joe manchin there. thomas is still with us. how much is a stimulus package

billion, is $908 this material in the context of everything we have seen, with the stimulus bills that have gone before? think $1 trillion is roughly what the market is expecting. it is a positive. but the thing is is it going to come before christmas, or after biden is inaugurated? not sure it matters that much. i think it is a slight positive. what is much more important is that we are completely confident that we can say the vaccine is working, and it takes out the risk for the global economy, which one could have feared say three months ago. for the market it is clearly a positive. ours: thomas, how much of risk assessment is based on herd 80%nity, that phrase, that take-up people are talking about, how important is that to match up with the risk-taking we

are seeing? thomas: for me, it is much about dust the reason why you have seen this significant rally in equity markets especially in november after he got the pfizer news -- the market is forward-looking, 3-6 months ahead. there was a fear before the news that when we were in autumn, that we would have to lock down again. that risk has been reduced tremendously. so you are right about the herd immunity, but still, when we come to next autumn, you should assume a lot of people have been vaccinated and, therefore, we will not have to look down again. i am not sure it is important when exactly we can lift the restrictions and when we, have earned in unity it it is more that a lot of people have been vaccinated -- and when we have heard immunity, i think it is more that a lot of people will have vaccinated. anna: does that mean we also able to look through the latest

lockdown measures we are seeing in germany, and possibly in italy -- in germany from wednesday, we will see tough locked on measures, but is that story based in the matter how tough the measures are? thomas: you are exactly right, i think the market is looking through these things. germany is locking down more strict, but it does not matter for the global economy in 3-6 months' time. a little bit the same with how fast the vaccine is rolled out. it doesn't matter that much. . it matters a bit whether we can lift restrictions, but it doesn't matter where we are in 6-4 of months. you have to remember, all the time, markets are forward-looking. they are trying to look at future earnings. that is why i think it is not that important for markets, the new lockdowns. manus: thomas, i applaud your stoicism, it is the most robust narrative i have heard in a while.

with a fiscal deal coming at some stage in the next month, do 1%, or perhaps more importantly, will the fed allow you to break 1% with substance? thomas: yes, it is a good question. what i believe in is that the fed is here for the long run. they want inflation expectations up, therefore, they want to continue with kiwi -- with qe. are they going to be afraid the interest rates are too high? i don't think they will now. it is driven by healthy development, increasing growth expectations. i think the fed will continue. i think they will allow interest rates, say the 10 year to go 1%.e to a it is right to think that u.s. rates will rise next year. we will have a fed which continues with stimulus, you will have a sharp growth recovery in the u.s., in my

view, and all of that supports high yields in the u.s., in my view. manus: ok. thomas haar stays with us, from danske bank. coming up on the show, rapid china inflows are spurring a call for the strongest yuan since 1993. where were you in 1983? pop me an iv. this is bloomberg. ♪

"daybreak:s europe." i am anna edwards in london, with manus cranny in dubai. it is predicted the yuan could strengthen in a level not seen in nearly three decades.

juliet sell joins us for this morning's call. juliette: this is a call from economist,china saying that a 10% upside for the chinese currency this time next year, saying investors are trying to chase yuan-dominated assets because they have more yields than elsewhere in the world. you have seen it strengthen today. upside.another 10% we have not seen that kind of levels for the chinese currency since 1993, almost three decades, as you said. this company has increased their holdings of offshore yuan stocks by more than 3%. that is showing this momentum coming through into these inflows. but he says the yuan's appreciation could be a key threat to china's macroeconomic because a rapid advance in the jan could impair chinese exports

by making them more expensive. they think that pboc will step in before you get to that level. may have a call for the yuan in -- at 6.35.ict 35 manus: thank you very much, juliette saly in singapore. thomas haar is with us this morning, from danske bank. thomas, do you chase the yield? we talk about overly consensus trade. everybody has been banging on about, buy yuan or chinese bonds. asia, and of the sensitivity from the chinese authorities of too much strength in the currency. you are right. it is a fundamental right trade. china is looking strong. you have seen china opening up a little more. the dollar is weakening broadly

because of rising inflation concerns in the u.s.. i think china will continue to grind lower. i think 6 in a years time is too much to cope with, i would imagine something like 6.30 or something despite, that it is consensus.tio anna: in terms of the chinese currency, the you get the sense that the authorities are happy with the strength they are seeing, some pushback? how far does that go? thomas: i think they could do tweaks, controls in terms of how you hedge your stock and so forth. we have seen that again and again. they could do more like about, because they are word it could hit exports -- worried it could hit exports. i think you will see it tightening from the chinese authorities. but the trend is there. i don't think they will fight that completely. it will be a slow move lower in dollar-china, in my view, that

the trend is there and it will continue next year, in my view. manus: if i can find further compression in credit spreads, arein eem markets, in g10, you prepared to take the credit ink in china given the rise default rates we are seeing? thomas: i think there is a bit of worry there. the last incidents we have seen, in terms of these spreading event is a sign of the authorities, it -- investors don't think they will be bailed outcome of these companies. there is a rising credit risk. for example, chinese government significantcarry a pickoff from what you see in the em space. i think that is a move we are seeing at the moment. anna: thanks so much, thomas haar from does québec. he stays with us -- from danske bank.

he stays with us. u.k. and e.u. extend brexit talks, but with less than one week before the real deadline that matters, will we get a deal? . more on that next. this is bloomberg. ♪

>> good morning from bloomberg's european headquarters in the city of london. i am anna edwards of manus cranny in dubai. this is "daybreak europe." very far apart on some key things. we will keep talking to see what we can do. the u.k. will not be walking away from the talks. people would expect us to go the extra mile. johnson extends

brexit talks with yet another deadline ignored. the pound jumps. looking at positives, u.s. futures gaining ahead of the first appointment of vaccines in the u.s. a barbara's and stimulus plan -- bipartisan stimulus plan will be unveiled. germany enters a hard locked down as italy overtakes the u.k. for coronavirus deaths. a very good morning. 6:30 in london, 7:30 in paris and berlin. a real focus where i am in the city of london on brexit and deadlines, and deadlines go and we have blown through another one over the weekend and now, we focus on the middle of this week, talk about whether we might get some progress, but do any of these deadlines matter other than new year's eve? manus: absolutely. our guest host and my previous two guest hosts say we could run on the way down to the wire on

the 31st of december so we could be repricing sterling. there's a whole load of different narratives out there which is that volatility is back. volatility is back, sterling is stronger. it sees this extension to a certain extent as a positive even though the prime minister of the united kingdom says we are very far apart and there are major issues. get ready for the australian style deal. david blum, the guest we have been quoting, says an australian ande deal is no trade deal trading on wto. annmarie: it means trading on wto terms and all of the shock and friction that would come to the u.k.'s relationship with the e.u. if that would come to pass. even if we get a deal and that does seem to be the base case for many of the guests we talk to, we are still facing a big shift in the way the u.k. trains

with its closest trading partner. asre will still be friction we get closer to the end of the year. manus: absolutely. we will talk to this more. the narrative was around. how do you jump the rubicon as a level playing field? they don't want tariffs coming back to bite them. let's talk about markets. we have a couple of narratives. v-day fory -- is a fiscaland f-day for stimulus. overwriting notes from j.p. morgan and the likes talking about a rally in equities. 20% rally from where i am sitting. london is flat. roll it up and you have a look at the currency markets. sterling is bid. volatility is ratcheting to

levels we have not seen in quite a while. the same amount of money to hedge yourself as that fateful day we were together. the oil market, up 1%, and great op-ed this morning. illusions of grandeur in the oil market as the vaccine does not equal demand. morning. with us this our guest host. let's bring the narrative to you which is the equity narrative. we are out. f-have this strong v-day and day narrative. this, again, there is consensus melt up drama. do you buy the story? >> we are in the bullish game so we are looking for equities next year, up 10% to 15% and it's

about this fix must to 12 months. in the world will be a better place because we have all been vaccinated, we don't have to lockdown countries next year, next autumn, and the europe and u.s., and that is what is driving it. you are right. it is soorry i have is contentious. are we seeing a lot of that now? market participants trying to position for that rally heading into next year and that's the reason you may see a little bit of risk heading into the end of the year. annmarie: if we are talking about herd immunity to talking about hurting into certain trades, long equities is one of them. what about short dollar? how concerned are you about them selling? thomas: it's about whether you are thinking about the broad dollar. dollar china will go lower. euro-dollar is a different animal.

price int of that to for europe and they will have challenges so that is a consensus that euro-dollar will raise higher from here. in our view, it will head lower at some point next year. annmarie: thomas, thank you for joining us. thanks for giving us your time this morning. lots of topics covered with thomas on bloomberg daybreak. staying with us, brexit talks have been extended. boris johnson and ursula von der the extrae to go mile and keep working on a deal. joining us now is the senior fellow at the german marshall fund of the united states. very good to speak to you. shifted givenase the continuation of talks or is this all part of the negotiation drama? >> keep talking it's good. both parties had a prearranged onortunity to end the talks

sunday. they did not. that is the good news. we don't know yet why. there is as you just said the possibility that this is all part of a sort of choreography dance of death that leads us to a no-deal, but there's also the possibility that this is the kind of drama, if you like, that takes us right up to the very deadline,before the new year's eve, before there is a deal, but i think it's important to understand that such a tactic is not without costs. u.k. firms, european firms that are supposed to be even with a deal suddenly trading on a new customs declaration basis and things like that, they are completely blind. they are almost at this stage not likely to even know how they will respond on january 1, what kind of forms they are going to

implement so if this is actually a choreography for a deal, it is still a very costly one. manus: go back and look at the evening when they were ready to walk out the door and they say merkel was the lady who turned him back. you say we are at an ideological standoff. anna has mentioned a level playing field. rubicon of ap the level playing field? what is palatable to the european side? jacob: fundamentally, this standoff is about -- the u.k. wants to have the opportunity to diverge from e.u. rules going forward. they are a sovereign nation, as said by prime minister johnson, and this is in many ways -- this is the point of brexit. if you did not have the opportunity to diverge, why bother at all? the e.u. is basically saying,

look, we are the biggest market. if you want access to it, we able to ensure there is a level playing field and fair competition, and how do you jump that? right now, we are at a stage where essentially, if you have no deal, you will have tariffs right away. but on the other hand, if you have a deal with a sort of independent arbitration coming afterwards, you may or may not future ifs in the this arbitration decides that the u.k. has materially diverged from e.u. rules, so i believe there should be a possibility for a deal that both can live in myere that is opinion common sense that you can reach such agreement but at the same time, you know, there are going to be, as i said earlier, chaos -- a certain degree of chaos on the borders

come january 1 because of the lateness of any deal, and that, politically, may just be better for both sides -- certainly the u.k., i would contend, for the prime minister to say it's not a deal. it's also blamed for the u.k. -- on the e.u. side, and it's easier to sell the mastic. that's basically where we are, unfortunately. annmarie: will it be a binary event for you, seeing the outcome of this, a question of deal or no deal? well a lot of the detail within that really matter? it will matter for certain businesses in the u.k. and the e.u. it might matter more in some sectors than others. what is the detail he will be looking for in a deal? -- you will be looking for in a deal? jacob: we kind of know what is in the deal. it's going to be a very shallow one. it's going to focus solely on goods, to some extent, some

agricultural produce analyte. we know what has now been agreed on the northern irish border. we know it's not going to include any services. so in that sense, we know. i mean, what will be covered and what might not be covered. the reality is it's a sin deal. thin deal. that's part of the political problem about this issue. what we know is that even if there is a deal, you are going to have to have ongoing negotiations about a host of issues, whether it's financial service -- financial services equivalents, the majority of the government, it needs to be negotiated going forward in my opinion. skinny deal,s is a as many people have titled it, how much more difficult is it going to make negotiations about services? if this is a deal done with gritted teeth?

how much more difficult does that set the stage for services, a robust services agreement? jacob: i don't think there's any doubt that those negotiations, under any circumstances, are going to be very, very difficult. but having said that, i also believe that if there is no deal, there is a very distinct risk that if you like the politics and the rhetoric spin out of control. i mean, we had a narrative this weekend that was focused on gunboats in the channel to protect fish. if that is the sort of medical level of rhetoric between the two camps going into any negotiations in a no-deal, that thanill infinitely worse even a hard-fought deal so i certainly hope there will be a deal but i would also say that it continues to be my base case less likelyis still

that no deal at this point unfortunately. ,anus: ok, jacob kirkegaard thank you very much, senior fellow at the german marshall fund of the united days. states.ight is with -- laura wright is with us. entering aany is hard locked down from wednesday. non-essential stores are closing, employers are being urged to shout workplaces, and school are being encouraged to remain at home. it includes a ban on gathering over the new year and will last until january 10. the u.s. has cleared the vaccine from pfizer and biontech for emergency use. longirst doses will be for term care facility residents. the president and other top u.s. officials will be offered the vaccine within days. the european union has called on china to allow a bloomberg news

to ao have access lawyer, medical care, and contact with her family. she is a chinese citizen who was detained on suspicion of endangering national security. china's e.u. mission says her rights and interests are fully protected and the matter is internal. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna, manus. you very much. i will pick it up from here. deal or no deal? which set of u.k. stocks are likely to rise and fall as we enter the final stretch of brexit negotiations? we discussed. this is bloomberg. ♪

manus: this is "daybreak europe ." i am manus cranny with anna edwards in london. ftse futures edge after the u.k. and e.u. agreed to extend trade talks. what is the outlook for cure ftse trades as the brexit saga nears its theoreticalend. we bring in -- nears its theoretical end. the market expects a deal. who better to give us the details other than our own analysts, our senior european strategist. right to have you. sterling is rallying this morning. what does that mean for ftse 100? >> it is an ironic twist, minutes. ander, it's a negative, this is due to the global nature of the ftse 100 and its currency

exposure. in our mind, it's not that tight of a relationship, at least not as tight as many people think. it's better in our mind to look at the ftse relative to european stocks like the euro stoxx index. here, the ftse is likely to underperform as the pound rises. frankly, it's even better to ask underneath the ftse certain trades or barometers either based on the company's geographic or exposure or their size. anna: good morning. let's talk about the underlying trades in the u.k. market, the domestic sources internationals. it kind of goes its own way which is not a reflection of the domestic story. it's a reflection of sterling and what foreign earnings translate into in sterling. i was looking at ftse 250. last week, with all of the talk about food shortages and

domestic chaos if there were to be no deal, it only lot 15 percentage points. what does that picture look like? only lost 15 percentage points. what does that picture look like? tim: we break them down and this is just within the ftse. we are breaking them down to 70% versus 70% internationally. the relative trade between them times in the four past two years. the domestics have outperformed significantly, signaling confidence in the deal. last week, this trade faltered along with the pound so if you think about this -- picture in the first quarter with -- picture the first quarter with no deal. politicals, bickering, inflation because the pound is dropping, and you have

covid restrictions. for is not a pretty picture these banks, retailers, or pubs. and the industrial global franchises, you know, are doing fine. they are playing on the u.s. and china recovery and the pound is down so that is the tension between these and if we have got signals of a brexit deal, the domestics are very well set and the opposite is also true. tim, globalet, positioning and exposure to the the mosterhaps one of under owned from a global benchmark exposure point of view . how does that translate in terms of the impact between small-cap and large-cap? thehe large caps represent global fund manager exposures, how does that relationship build? tim: there's a couple things

here. on the one hand, it's a little bit like what we just talk about with domestic and international. you looksmall caps, if at the ftse small-cap index, then 60% of those companies are industrial, discretionary, or property. very dear to the domestic scene, and the larger cap, as we capsdy talked, the small get hit harder on a no-deal, and that is just the way it will lay out. 30% sinceoutperformed the spring because of the positive sent amount about a deal -- sentiment about a deal. on your point, the other thing that plays into this with the larger camps is don't forget, you have got about 20% of the index nets either big oil or metals and there's no index in the world that trades like this,

so last week, we had oil trading up, --als should trading trading up, and it's a beautiful thing. if you look at the ftse, there's a pretty interesting outlook going into 2021 in a global recovery and if we don't have brexit messing up the picture, it's a pretty good scene for the ftse. anna: thanks for bringing us the things to look out for. we will continue to focus on this throughout the week. tim craighead. ftse futures entirely flat now so not a move on the pound. coming up, astrazeneca plots its post-covid future with a $39 billion deal. we will discuss next. this is bloomberg. ♪

anna: this is "daybreak europe." i am anna edwards in london with manus cranny, who is in dubai. lots of news out of pharma today. dealzeneca a $39 billion for a pharmaceutical company. we are joined by rachel chang. what is the significance of this acquisition for the global pharmaceuticals agency? rachel: this is a sign the industry is looking past covid. for much of the past year, most of the major companies have been tied up with vaccines and treatments and now that we see the first vaccines come out into the population, we know that they seem to be extremely effective. we are thinking back to what will be the record when covid is over and what will that competitive playing field be like? we are seeing astrazeneca coming

out the gate to position themselves for that. manus: thank you. rachel, they are paying a 45% premium. how is that being perceived? why are they willing to pay so much? rachel: that is a substantial premium, 45% on the friday closing price. that is not unusual for this sector. it amounts to billions of dollars in a single drug. that kind of premium is not unusual. we will have to see really. manus: rachel, thank you very much. that was rachel chang on the astrazeneca deal. let's see how that trade opens up. whirling his bid -- sterling his bid. -- is bid.

you have got another two hours, anna. good to have you here. ♪

anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards alongside matt miller. matt: good morning. today, the markets say fingers crossed -- fingers crossed. futures sent higher while the pound gains on yet another brexit extension. the cash trade.