remarked a few weeks ago that we are past peak central banking and jackson hole just one year ago we had mark carney the. owner of the bank of england say and he gave a. speech during the lunch and he said it's time to to organize a new monetary system to replace the u.s. dollar so i think inside us are well well then the becoming almost but they can't ignore it anymore no one could say you know let me ask you a question about after them and you know we've been there many times to the netherlands and it's such a great country and that's such a great city and of course they have a reputation for being quite liberal minded and there's a lot of activism now we we met up with greenpeace many times in after them and our message to them 1516 years ago was that it's the central bank that is the root of all the issues that activists come to protest against my question is is there a growing awareness in the activist the progress of the liver the liber the liberal communities that the root of their problem is a central bank you're quite right and one example. is of course what's happened with t

become the plaything for speculators fueled by incredibly egregious money printing by a rogue central bank and this is causing all manner of dislocations mal investments in societal changes for more let's turn to stacy herbert hey well you know what something that you predicted would happen is happening and it's coming true billionaires lining up to take their companies private so what will robin herder's trade when everything has been l b. right so as we've been saying on the show for a number of years all this money printing in the strategy of companies taking themselves private or buying back their own shares with the 0 percent interest rate would end up with a an economy and a stock market that doesn't exist anymore because it's all been taken private remember during the 1980 s. michael milken introduced the revelation in the revolution in leveraged buyouts the l.b.o. they borrowed money they acquired companies they sold off assets they kept a difference and they made many many billionaires the 1st huge wave of billionaires in america thanks to jackson burnham mike milken in the levera

as a central bank. >> as a central bank, there is no pressure for many authority coming closer to whatll contributing to fiscal policy. as you know, our consideration is that we have abundant research. [inaudible] so yes, fiscal policy has been [inaudible] but unlike other countries, we assets.ets, huge francine: when you look at some of the imbalances that may be we have served because of ultra rates for longer, is there anything we are under appreciating? is there anything you worry about we are not looking at yet? are always things to worry about from our point of view. we are an extreme -- in an extreme situation. i think we all have to worry about the pandemic and how it develops. developments in most countries, including our own, have been quite worrying this summer. that made uncertainty. sharp downturn a in our economy, like many other countries, and that has been handled by secret policy and monetary policy, which in our case has contributed to downturn. there's always more specific worries as well. one specific area we mentioned in our recent report is, so far, have had ay we

and that central bank interfaith vention well cause inflation so here is what we see out of singapore ok why the hopes for a solution to out of control government debts won't work this time rapid growth is no longer possible and inflation is not going to be tolerated in societies with slow wage growth head of central bank of singapore it has been said out loud it has been said out loud now they're speaking honestly at least some people are some of the truth is trickling through and we you know in response to this us national debt climbing climbing climbing he also says rising inflation and high economic growth works during the decades after the 2nd world war in bringing down debt levels and highly indebted countries such as the us but it won't work this time said carmen shanmuga garbutt men a senior minister in the singapore cabinet chairman of the monetary authority of singapore singapore central bank and deputy chairman of the government of singapore investment corporation singapore sovereign wealth fund he was speaking at the opening day of the virtual singapore summit so there was

these central banks will be very cautious.t to make sure inflation expectations are anchored. even if they think we have these demandrge gaps and weak dampening inflation overall, they want to be certain that is the case. you have seen a lot of frontloading and rate cuts in emerging markets as well. anna: do you think central banks in these regions, in these emerging markets, will have to be creative around policies? some of them already are, using other lovers to drive -- using other levers rather than the want tool that is the interest blunt- rather than the tool that is the interest rate. guest: they are not lower bound, versus the case in advanced economies. some of them have moved to qe this year. poland is one example. for now, they will stick to interest rates as a main policy tool. right now, you are going to cef central banks on hold. they will take stock of recent developments and take a very cautious approach. anna: caroline, thanks so much. caroline grady. 8:37 here in london. let's take a look at america's income

banks versus the central european banks, versus the swiss, for something else?ical over the next we humans will be watching the gdp recovery rise across the world, and gauging from that feedback into the banks. the u.k. has additional complications of the brexit negotiations, the repercussions on the economy could be deeper here. hence we are seeing that in the banks, which are underperforming compared to other european lenders. that could be one to watch. kailey: in the u.s. we are seeing bank lending tighten and a time that many consumers need access to credit. are you seeing the same thing in europe? is something the european policy measures have tried to address, the ecb and cheaper lending to the banking industry have really tried to prevent those conditions tightening. it is too early to tell. we will see more over the next three months, but the early implications is clearly this is a concern. kailey: thank you so much for joining us. it is time now for a check on the bloomberg first word news. ritika: it was a record-setting month for joe biden. bloomberg

central bank modelled on the german central bank. i think had aldrich and his colleagues introduced that plan in 1908, 1909, 1910, even early 1911, it probably would have got enact ae chltd we came out of te panic. there was a sense we had to do something. aldrich had the power of the business community behind him, but republicans didn't act. one gets the feeling that they thought they were going to be in power forever. they had largely run the government since the civil war and probably they thought they would run it for another 50 years so they didn't do anything in those years. it wasn't until 1912 that aldrich introduces his plan in congress and by that time, the country had swung in a progressive way. the democrats had taken control of the house and with progressive republicans, they now had control of the senate and these democrats and republicans were not about to enact a conservative, private bank like aldrich was proposing. so the aldrich plan died. the house is now controlled by the democrats, the ball is in their court. an

the government is giving in the central banks are giving.fbe fair to the ray dalios this world, i think this is a classic third phase of monetary policy in a debt super cycle. you've done qe for the last 10 years and financial assets. before that, you cut rates down to zero. now we are coordinating monetary and fiscal policy, albeit not officially. the size of the fiscal package i don't think really matters to the market in the sense that it might have some implications on encouraging, but i suspect that will be more about the vaccine timing. will keep ond if coming, whatever size that fiscal packages. that is the key here. guy: i think dalio speaks later on this week, so we will hear more from him. what do we learn from christine lagarde this week? at the moment it looks like they are sitting back and waiting to see what happens area using their really worried about the currency at $1.20? when do you think we get more from the central bank? chris: great question. i think really, they are worried about the currency strength. they must be. it

where you can. >> david, thank you for joining us as always head of european fixed income. >>> the central bank action continues. the bank of england is expected to hold steady on rates and policy later today governor bailee previously indicated that negative rates remain in the tool box some anticipate a more cautious phone as they tee up stimulus measures catch us for boe decision time at 12:55 cet for now, we are going to take a eabrk. a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. and then found the home of my dreams. but my home of my dreams needed some work sofi was the first lender that even offered a personal loan. i didn't even know that was an option. the personal loan let us renovate our single family house into a multi-unit home

it is getting that central banks can meaningfully increase inflation, and i think the central banks atome point are probably going to have to provide even more in the way of support. for a lot of central banks, which are near zero in terms of their policy rates, then it would be to go to negative rates. much,ne: thank you so david riley. business,rom the sports, and entertainment world. speakers include ursula burns. in bank of america chairman -- and chief executive brian moynihan. that is at 7:00 a.m. in new york, 12:00 p.m. in london, and this is bloomberg. ♪ ritika: this is "bloomberg surveillance." here is the latest bloomberg business flash. the lofty goal of making a $25,000 car by 2023, according to tesla. this cheaper car will be available by cutting the cost in half with cheaper car batteries. the news came as the company's so-called battery day, but it lacks the sizzle that companies have come to expect from elon musk. joining goldman sachs in pausing the return to the u.k. office. appealing to britain's to work from home. the banks as critical work is supporting customers i

a busy day with central-bank decisions. ket action with sophie kamaruddin in hong kong. sophie: we are keeping an eye on banking stocks this morning. the bank index is gaining 0.7%, after we saw u.s. yields retire overnight which could add more fuel for value hunters. at offshore yen is hovering near a july high. afterare slightly higher the opening was in treasury. the 10 year yield for the u.s., just pausing after rising for three days. let's check in on the mood in seoul. 0.2%.is off by the korean won is gaining ground, up 0.1% against the greenback, trading at its highest since january 23, after the dovish fed message, seen as a boon to em assets. while we are keeping an eye on stocks in seoul, this company will make a decision on a potential spinoff of its battery business. we are keeping an eye on that. telecom ashing sk well, as one store is preparing for an ipo next year. the u.s. industry is lobbying for federal incentives to keep manufacturing of semiconductors at home in the united states. let's check in on the op

we think the ecb will continue to be supportive, has lessthe ecb ammunition compared to other central banksich have become a bit less independent and are more boosted by the respective governments, like the fed or the bank of england. can i would say here that the euro continues to go higher, because of the currency, where the central bank is more conservative. so can we see the growing above 1.20? yes. we think it will cap a bit of upside, european offset on the equity side, however, and credit -- in credit, which is about survival and the company, we still see a bit of interesting yields across european companies. but given the factors, which are linked from a cyclical economy, like banks, for example, or the tourism industry, which, by the way, still also gets good government support. so we are lending to these companies, to these banks, and we are getting a lot higher than we get paid by buying a spanish or italian government bond. lookine: alberto, when you at some of the banks, what happens to, you know, fixed-income in europe, where, i mean, you mentioned some of them that you find a

he wants a central bank in virginia to help farmers and merchants. he wants a bank in sacramento or san francisco to help california farmers, merchants, and bankers, so he comes up with the regional reserve banking system of x number of reserve banks. he realizes he has to have somebody on top of this to coordinate these reserve banks, so he says i will use the control of the currency. he names a top federal banking official whose main job it is to authorize national banks. if you wanted a bank at that time you went to the state or you went federally. if you went federally, this was the guy who oversaw the license. one author had a very good characterization. the aldrich plan was called the national reserve association. glass called his the federal reserve association. it was federal in nature. when he comes up with the scheme, we don't know who the next president is going to be. it's early 1912, and we are headed toward the most famous election probably in american history, the 1912 presidential election. three major candidates. the republican presid

guy: let's talk about what action we will see from central banks. be hearing from jerome powell shortly. today, the governor of the bank of england pushing back on the idea negative interest rates are a near-term possibility in the u.k.. the ecb looks as if it is warming up to the idea of more qe. sense of whether or not we are going to see significant central-bank stimulus coming from here and what indications that will have on pricing. ironically, the ecb will be the central bank that will deliver the most effective easing going forward. they have the pandemic program and they are going to expand the qe program. that provides a lot of support for the european economies to fund their fiscal deficit and fund border programs for their economy. the other central banks are a bit more of tricky situations. u.k. does go down the negative rates route, that is a currency story that could lead to much weaker currency, through the import export channel could stimulate the economy. i think the u.s. -- the fed is somewhat has a convoluted communication strategy

annmarie: we have more central bank news as well this week.d see a rate cut in south africa after gdp shrank an annualized 51% in the second quarter. friday, further details from the bank of russia. the central bank is likely to keep its key rate on hold. our guest is still with us. thank you for joining us this morning. many expect central bank's to remain dovish for a long time. in emerging markets, this is much more challenging. how do they remain dovish and attract capital in this type of environment? marija: that's exactly the challenge central banks are facing. they need to support economies. they justifiably cut rates. this year, it is probably ok. asrent-account deficits activity came down. should people start spending again, it would be very acute problem. for this year, they are probably all right cutting rates. next year would be problematic. with the performance of emerging markets. emerging market countries struggled to issue local currency debt. a lot more issuance in dollar-denominated debt. that probably has to do with between

[inaudible] mitigated by the central bank for loans.ble] the credibility, the option has some value. it is low value. [inaudible] what comes next? suppose we -- [inaudible] -45 basis points creates issues. [inaudible] -- big problem. the main problem is not monetary policy. [inaudible] -- below the curve, more than today. today is tonction preserve. huge issuance of this [inaudible] question is, main fiscal has to say accommodative '22 but howainly in do you spend the money? [inaudible] question back to the -- [indiscernible] correctly, you know it is supporting structural reforms, technology. it takes time. there is not much time. tom: peter, thank you so much. the former ecb chief economist. coming up, interesting, david kirkpatrick, not on a specific technology,erican our digital dominance forward. we will look at the digital effect. this is bloomberg. good morning. ♪ tom: good morning, everyone. knownberg surveillance" for politics from time to time. francine lacqua and tom. futures, -10. good time, after this most odd summer of 202

how much lower can central banks engineer the shape of the curve? ave seen so much already, we've got curves flat around the world. low, yet incredibly once again bank of england is talking about negative rates come it has left qe on the table, ecd did something on bank lending. there seems to be a potential for rates to go even lower. how much scope is there? , may bee united states a little bit more out of the 30 year. more room toe compress. japan,u look at rates in germany, parts of northern europe, i think you are getting to a place where we are pretty close to the floor. on rates. hoping, as you do more qe in that environment, is you are gradually pushing more investors out of the credit curve, and monetizing risk premiums. stimulushere the associated with asset purchases come from. it is a tool. tools, it has diminishing returns. to some extent, we already starting to see that. alix: stick with us. nathan sheets. this is bloomberg. ♪ ♪ >> has been unbelievable and inspiring how well so many public companies have managed through the pandemic. h

whether it is the central banks in the u.s. or abroad, the balance sheets of the central banks are clearly stretched. i think as long as interest rates stay low, which is clearly the strategy of the fed and the global central banks, that will be fine. i think there is so much pent-up demand. i just have a sense that once we get through this virus, there is just going to be a real resurgence in consumer spending. everyone is being pent-up for so long. that is what we have to see. you know, look. there are a lot of tensions in the world. the worry is about the corona winter. in the northern hemisphere especially, where the weather is areg to be as good, people dining inside. the virus could be very difficult and could be hard on all the economies area -- economies. >> given the pent-up demand we could see, does that mean we could finally see some positive inflation other than just asset price inflation? >> that is a great question. the fed clearly has taken the strategy of growing our way out, meaning they want to take the real r

the central bank has a challenge.nderlying theme is that they need to be as supportive as they can to stimulate economic growth. anna: thanks very much. chris dyer stays with us. we will get further details around strategy away from the u.s., into japan and europe. let's get a bluebird business flash. here's laura wright. laura: snowflake sword in its stockmarket debut. share price up as much as 106 26%. a market value of more than uber, dell, and general motors. 6.4 billion dollar ipo is a record for a software company and is the biggest in the u.s. this year. >> the ipo is a price discovery process. we were after a very specific set of institutional investors. people that can hold multibillion-dollar positions. willing to hold them for 5-10 years. also people that don't change momentum up or down. laura: the latest version of the playstation will go on sale on november 12 for $500. that matches the price of the xbox series s. the companies battle for market share. pricing is an important factor of success. the less

any other central banks in e.m. economies that are on the same path, but doing better?ane: it is quite interesting. i think if you go to more stable e.m., looking at poland or hungary or other countries in that region, perhaps the opposite is true. they would like their currencies to be weaker because they are think and get out potentially winning more businesses, potentially from asia. we've heard of quite a lot of on shoring in the last few months. if there is more back towards the major market, and those economies really want to benefit from that, and you could argue that for than, there is a little bit more of a currency war. a month or currencies to weaken, and who doesn't want a weaker currency? but turkey has gotten inflation problem. alix: what is your top trade right now as we head towards the election? fx volatility is fully picking up. alix: i think fx allah -- jane: i think if we have seen a stronger dollar, if we see that coming through more, currencies like the aussie could drop more if we get more of a risk off appetite. alix: great point. maybe one day w

let's get analysis on all the central-bank action.aberdeen standard investments and she joins us from singapore. we know a lot of the central bank liquidity has been underpinning what we have been seeing in market action. that brings us to our question of the day, which is essentially how much more stimulus do risk assets really need here? that is a tricky question. we have been seeing a lot of stimulus coming through and i think we have just seen overnight that we are lower for longer for now. i think we have to look at how the recovery of the economy would look like going forward in the next few quarters and then we will see whether the central bank will add more stimulus and whether it will result in a different stimulus action? juliette: what we have been seeing is this rally intact? when we had the we chat ban announced by president trump, you said this was a buying opportunity for tech. do you still see it as a strong buying opportunity? pruksa: i think we are seeing volatility in terms of share price movement following this ann

the european central bank is giving lenders temporary relief on their leverage ratios. e ecb's new measure allows the bank to include central-bank exposure from the calculations based on data from the end of march. that will raise the average ratio by about 0.3%. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am leigh-ann gerrans. this is bloomberg. francine: bank of england officials are expected to laid the groundwork for more monetary stimulus. that is as optimism over the u.k.'s economic rebound officials out. forecasters widely predict the bank's bond buying program will be expanded again before the end of the. the market expects the key base rate to be cut below zero in 2021. joining us this morning is deanne julius, distinguished fellow at chatham house. thank you so much for joining us today. if the bank of england, how dovish can the bank of england actually turn today, given all the headwinds we are facing? deanne: i think they will sound uncertain rather than dovis

in focus, the swiss central bank has maintained its key policy rate. willing to intervene more strongly in the foreign exchange as the frank continues to be highly valued. >> turkey's central bank keeping rates unchanged. lowered rates to the current 8.25% to prevent further devaluation. the policy has worked to boost exports and soften the economic fallout of the pandemic. >>> let's look at u.s. futures after yesterday's brutal selloff. the s&p dropped 2.4% with 94% of stocks moving lower. consumer durables and apparel was the exception with strong results out of nike. nasdaq dropped 3%. we are in for a soft start if these levels hold. it looks like the pace of selling has eased some what. the nasdaq looskiking to lead losses the dow looking at about a 20-point drop at the open. >>> fed chair powell called for a fiscal stimulus. he said the recovery would go quicker with is support from congress >> a full recovery is likely to come only when people are confident it is safe to engage the path forward will depend on keeping the virus under control. >> o

what is the interplay with central banks?hael: the stimulus, i think, will have to come from the fiscal side. we know what sort of challenges the central banks have. they have got almost more than all in -- thinking and thinking of raising interest rates. qe fully back as normal. nothing on the horizon in terms of the whole debate of yield curve control and so on because yield is already very low. that means we need to see fiscal stimulus. we need to see some of these stimulus programs renewed that we saw in april, may, june be introduced. but we have to be realistic. continue to do this for a long period of time. therefore, we have to expect at some point, the bare minimum will be done. if the central banks see that t he recovery -- they will have very little incentive to do anything. therefore, i do believe q4, q1 is going to be critical for the path of this recovery and the time span we are looking at for economies to get back. we think it will take two to three years to work our way through this. the next phase has to com

as targets do you see the central bank injecting more stimulus to get things rolling. well i think the projections coming from germany are new to the optimistic original the germans of being so minus the optimistic typically now their projections are predication quite a few things 1st of all they're saying we're not going to have further lock sounds and which means there's not going to be further outbreaks of covert i'm not quite sure how they're able to make those projections i think the balance the risk in many european countries right now looks as if there are going to be through the lock downs certainly or looking at in france in the u.k. at least as big travel restrictions in place i don't think i share his optimism as a seller and bear in mind the german economy is a very export driven economy so things might be great in germany but if they're out of the rest of the europe and the rich and the rest of the world it's not going to translate into much economic success for germany so i think they're being rather optimistic on the v. shaped recovery i'm not sure how l

we heard from the vice president of the european central bank, saying they are looking at euro levels and the ecb also offering a bit of capital relief, or capital relief to banks in order to cope with the pandemic. away,hey are all flailing and you felt that yesterday with mr. powell. it was under store neri moment. i cannot underscore enough the originality of what was being accomplished yesterday, francine. i was sitting there with michael mckee, and his press conference question was superb. they are all dealing with what to do with inflation at no aggregate demand. it is a fascinating time. francine: we will have plenty more on that, but now let's get to first word news in new york city with ritika gupta. ritika: president trump has slapped down some of his top health officials. he contradicted them at a news conference, saying that a coronavirus vaccine could be distribute it widely to the public by as early as next month. cdc director robert redfield told congress that the vaccine would be distributed in the second and third quarter of next year. the president called those comme

that has definitely allowed the central bank to save some firepower. ot want to rock the boats too much in terms of destabilizing the banking landscape at this point. shery: tell us a little bit about the broader risk picture them. jonas: we talked earlier about how banks are hoping to save the economy but that is coming out a big costs. they are settled with sagging earnings and a ruined capital. so the stealth approach is papering over things for now. but it will be interesting to see next year if again they will start allowing the weaker banks to fail. as many experts and analysts say they will have to. and what the market reaction to that will be. shery: all right. jonas bergman with us. don't forget, you can always find in-depth analysis on bloomberg radio. we are broadcasting live from our studio in hong kong. you can listen on radio plus or bloombergradio.com. more ahead. this is bloomberg. ♪ this is bloomberg. ♪ take a look at trading in the aussie dollar which is seeing some price movements at the moment after westpac said it sees the rba cutti

i think there is very little central banks can do at the moment and honestly, in my view, all centralanks are now more focused on unemployment rather than inflation. lagarde, what she said is centrallly what banker should say but in my view, the focus is on unemployment and going forward, what they can do is very little. the increased the size of the balance sheet about 50% in a short period of time. that's pretty much what they can do at the moment. in negativeready territory and have proven not to be effective, so going forward, the ball is on the fiscal side rather than the monetary policy side. let's see if there is more fiscal lift to come. the bond market is ground zero for you. negat -- -0? .52. you are looking at the most issuance since 2009. is there asymmetric risk in the bond marke= -- bund market? unpickssuance in any way the bund market? but the: it could, amount of liquidity in the market and the players needed to buy german bund, whatever the and the central bank is still behind the curve. even aaw in the u.s., significant increase in supply can move the rates much. the

we in central banks cut race -- cut prices. that means you could have more stability in those markets. there are other things to consider. francine: talking about things that thed go wrong market hasn't priced in, we heard from the ecb regulator for the banks saying that the market is not pricing at all at the moment a no deal brexit. how would you play that at the moment? believe thatf you no deal brexit should be the base case, you should be short sterling. that is not a novel concept for anyone with a depressed level of the currency. you recognize that clients are also underweight on currency. the disruption you would get from a no deal brexit because of what it means for the bank of england, possibly negative interest rates, means the obvious hedge is the one that is being underweight the currency. tom: with this hedge uncertainty, can you affect trades? can you affect a tactical strategy? john: i hope so because that is what i'm trying to do for a living. i think the idea here is that you should expect maybe a lower suspec

we have always been in this discussion with central banks stepping too far.ee an as we do not economic recovery, as long as we don't see pickup in inflation globallye central bank will remain highly supportive because -- i don't know a way out of that without economic recovery and increasing inflation rates. if that is not happening, it will remain full throttle. matt: thanks very much for joining us. appreciate your time this morning. talking to us about the situation, the broader situation in europe and the situation here in germany. anna, we did get german consumer confidence numbers out. minus one point six in october, better than 1.7 we saw in september, but still the lowest level since 2003. questions around propensity to spend for consumers in various geographies i'm sure as we build toward the winter, as we assess the extent of lockdown measures. next, building a sustainable recovery. should we be looking to digital technology for a way out of this crisis. ♪ look here, it's your very own all-in-one entertainment experience: xfinity x1. it's the easies

range bound, very stable, not moving a lot, consistent with a central bank that has been on the case rsistently very, very easy. does something happen today with the bank of japan that potentially disrupts that relative stability in the yen? that could be incredibly important for performance, not only in japan but for developed markets versus emerging markets, at a general risk measure for global stocks at large. we have more market views. guggenheim's global cio told bloomberg tv that the fed's pledge to keep rates lower for longer will make it virtually impossible to haidi: he says markets are price for rates remaining on hold for at least five more years. >> the chairman is going to have a lot of pressure on him to define what and overshoot means, what will actually treat for a rate increase. coming into this the way the market was priced, we are basically priced for virtually no increase for the next five years. i was a little bit surprised because i'm probably a little bit more on the bearish side of this. they would be strong in their commitment to go through 2023, but you know,

those will be issues the central bank bears in mind as they work their way through.t economy and our exports are up. we see good levels of investment from both overseas and here domestically, so there is an awful lot that changes in a short time and i think by the time we get to the be getting of next year, people will see how the new zealand economy has gone. the ratings agencies continue to u.s. favorably and know we have a strong balance sheet and this upland approach from a physical point of view. i think there's an awful lot of water to go under the bridge before decisions from the reserve bank next year. do you imagine where you have a date letting foreign students, tourists, do you see the idea of a trouble bubble happening with australia? grant: we are working toward the idea of some international students returning at the beginning of 2021. it won't be at the volumes we have had in new zealand in the past but we are working to see what we can and able. the government recently announced we would be creating a certain category of prices for people to support e

european central bank's chief says the coronavirus downturn less severe than fear but admits the recovery will be slow. and known for its lavish tales of romance and witchcraft no. enjoys a real life drama losing millions of dollars as the pandemic turns the industry on its head. again for us all and let's do business the german government says it's looking at the entire set of instruments they could use in taking action against moscow over the poisoning of russian opposition leader alexina bally chancellor angela merkel spokesman has underlined that she would not rule out consequences on the multi-billion euro stream to pipeline project if moscow fails to thoroughly investigate the case it also says the german leader is open to all. the north stream to pipeline through the baltic sea means a lot to both parties for russia it's a source of solid foreign currency for germany and other e.u. countries it's a major energy conduit but following the poisoning of russian opposition figurehead alexina valmy a crime blamed on moscow the german government has for the 1st time considered halting con

what are the actions of the central banks? what are they distorting? how much are they distorting? where am i being incentivized to take risk regardless of the price? francine: will we ever go back to old-school correlation? james: i think we will. humanity, cognitive bias, we have a tendency to believe what is true today will continue to be true. it is called the status quo bias. we have short memories. in reality, monetary policies have not always operated this way. we go through paradigms where operates aolicy certain way, and then we have to reassess. i think in the next few years, there's going to be a massive and fundamental reassessment of exactly what monetary policy is trying to achieve, and when that occurs, that absolutely will change some of these relationships. that being said, i do believe there's a limit to which markets can continue to pay up, ignore the premium they are paying for future cash flows purely because they believe there is a central bank there to support them. so i believe there is a confluence of the events in the coming years. i think it is likely tha

the european central bank which is of course the central bank of the euro zone of the european unionade permanent. is that something you could consider, because, you know, you are going to need to stay with this for quite a while. could it be permanent? well, we didn't decide at the moment to have permanent funding. we decided something unprecedented — someone called it a hamiltonian moments. a rubiconian moment. but apart from labels, i think we did indeed take important decision, an unprecedented one, and the experience of the european project shows that when you take an unprecedented decision, if the decision produces good results, then you will repeat it. but until now, we didn't decide a permanent initiative. is it a good result, though? because, i mean, there are net gainers, and there are those who also stand to lose, like austria, denmark and holland. is it fair that some countries are putting money into this fund, and they don't have as much say about how the recipient countries can spend it? because this has been a big area of dispute with the dutch saying, "look, if money

our view is bond yield volatility will be controlled by central banks.cess distortion needs to be reflected in other asset you start to see that with euro-dollar, cny, sterling, and this is why isrency vol versus rate vol attractive at this stage and when it comes to equity vol, more dispersion across sectors. fromrie: kokou agbo-bloua societe generale, please stay with us this morning. let's get to the first word news with laura wright. laura: oracle is said to be the winning bidder in the battle for tiktok's u.s. operations after the main rival microsoft announced its offer has been rejected. sources tell bloomberg the deal with oracle is narrower and appears more like a corporate restructuring then an outright sale. terms are being discussed. the u.k.'s rule of six comes in force today. no more than six people can meet indoors or outdoors to stem the spread of the virus. -- rising at a pace not seen since may according to the institute for employment studies. the u.k. faces twice as many job losses in the coming months than the session following the f

head of the central bank says the economy will improve.loomberg spoke with him today. >> the fourth quarter will be better. next year, we also think that our growth will be better than last year. it depends on external factors, and those factors related to the way the economic expectations see our program, the credibility we can generate, and the way that we direct things. brazil's economy shrank in the second quarter from a year ago. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. alix: we want to turn to clean energy. we want to go to hydrogen. a goldman sachs strategy it wrote that clean hydrogen is emerging as they key technology to d carbonized the high end of the cost curve and it should cause large-scale developments in carbon capture and renewable power. you needed to move forward on zero emission standards. mitsubishi is now planning to build three hydrogen ready power plants in new york, virginia and ohio. browning, the