i think that christine lagarde will not be a snoozer. it will be interesting to see what she has to say. jonathan: the ecb will be happy with what you said. the weather in london is absolutely beautiful. i am in a good mood. one of those mornings when you wake up and it is just -- mmm. it is photo on twitter, coming out of whatever -- jonathan: you were not with me. tom: you got that right. it was so emotional. lisa: he has not gone to sleep. he was out clubbing. jonathan: we look at the price action. equity futures negative on the s&p 500. let's give you the price action. -4/10 of 1%. breached 1.20. yields treasury unchanged. we are in the middle of the range since april 1. the bottom half is 50 points, the top end at 90 points. there it is. worldwide, we want to bring in our first guest troy gayeski. it is great to catch up with you. have becomeon, you more defensive in alaska but weeks, why? troy: one of the major drivers of the explosive upside has been massive expansions of the balance sheet. they expanded by over $3 trillion, that

we will talk about christine lagarde. what is the size and scope for this stimulus from madame lagarde? she boosted european equity markets yesterday. she will act as appropriate. she takes hold of the do whatever it takes narrative. we will discuss the numbers on. this is bloomberg. -- the eurozone. this is bloomberg. ♪ manus: i'm manus cranny in to buy. ken murray -- in dubai. let's talk about your morning calls. meiette saly, she has left on my own. always a bit dangerous. let's talk about europe because ubs, what a spoiler. what is going on? >> this is due to the pickup in virus cases in europe and the accompanying restrictions that come with this. ubs saying you are seeing a plateau in the economic picture which could have downside momentum for european earnings. see modestu could downside from the stoxx 600 index although analysts including nick nelson have targetted the year-end for the index. 340 is a drop of 4.4% from friday's close. would beany upside from relative valuation to bonds and not absolute ones and ov

citigroup next on christine lagarde and the ecb. futures -9.loomberg. ♪ ♪ ♪ ♪ ♪ the big events are back. xfinity is your home for the return of live sports. tom: this morning, it is all the rage. call it others for longer. how accommodating can president lagarde be with the ecb reports? all will listen. 500erday's lift -- the s&p hits 5% below its peak. apple is 12% below its peak. tesla, an outrageous recovery. and from fear to rage, trump cooperates. woodward interviews the president. the result, outrage about the book "rage." this is "bloomberg surveillance ," from our world headquarters in new york. francine, i have eight things to talk about but we have to go -- is this media a big deal? francine: this media is a big deal not because and it would is expecting anything now, but we will get updates on inflation. this is the first meeting since covid cases rose significantly, but also

christine lagarde has a message for the euro zone.he ecb is ready to deploy more monetary stimulus. let's take a listen. pandemic ist of the still being felt across the euro area. , peoplere losing jobs on the income businesses are facing difficulties and prospects about the future remain uncertain. inflation in the euro area stood august and is expected to remain negative in the coming months. away frome are far the goal that we have, which is close to but below 2%. we are not complacent about it. the euro area real gdp is only expected to recover to precrisis levels in late 2022. the recovery remains incomplete and certain and uneven. francine: let's get more on this with our guest. from theso hearing finance minister of germany raise 75%t they will of gdp. do you think they are underestimating how much they will need to get out of the recession? but i thinkwill, one of the things people said of miss is it does not really matter how much you borrow. if you are borrowing nothing, which is what people are doing now, germany is borrowi

that was christine lagarde, the president of the european central bank with an important speech of about 40-45 minutes. the focus has been on inflation. there are a couple of things we need to look into and we have reaction from laura cooper. ecb willay that the consider allowing inflation to overshoot. good morning to you. i know we listened to that speech together. are we any closer to more easing from the ecb? laura: i think it certainly is the case, but the take away is that it was a very dovish commentary from lagarde. there are two key takeaways i'm seeing. one is that there is this continued willingness to do more because she did note the fundamental challenges around this low inflation outlook and the fact that they do seem willing to have this inflation targeting regime, average inflation targeting regime, like we are seeing from the fed, because she did note that such a strategy could strengthen the capacity of monetary policy to spur the economy given the constraint of the zero lower bound. the negative lower bound. it is quite interesting because she also noted that inflation

this was a dove speech from christine lagarde this money.ick: i think the expectations of qe policy, clearly that will depend on a number of factors. but i think you have a very supportive ecb, a very concerned ecb about how the chronic phase of the pandemic is emerging and what else can be done. but they have done a lot of credit already and i guess they will be doing more given the lack of concern about inflation. tom: we are distracted by the silliness of the political season. what i observe in breakevens across the western world and the 10-yeari see in and two-year german dynamics is that we have this inflation and deflation. is that trend now entrenched, and do we have to adapt to it in our investment? rick: we have had that adaptation for a long time, and i think you pointed out earlier, we have got real yields at extraordinarily low levels, negative interest rates, negative real yields. that is enforcing investors to think about where they are going to get returns strong. it is not a willy-nilly -- for spread assets, squeezed into tho

christine lagarde. ere seems to be this belief in the market now that maybe president lagarde could have been a bit stronger to condemn the strength, how quickly it rose. do you agree with that? how much would that have changed? >> no, i think we could not ignore that the euro has strengthened significantly over the last few weeks or onths. the ukraine was more vocal around the currency. t in general, a stronger currency does find -- that does lower inflation expectations. they have it on the radar and it is part of the things that will drive it forward if it keeps going up. they will become more and more vocal about it. francine: what does that mean for how the e.c.b. is handling the crisis overall and where you see value in european fixed incomes? >> the e.c.b. like other central banks will remain in place as a strong, strong support to the markets. what does this mean to fixed incomes? ranges in government bonds. yields with real yields likely to remain in negative for tory and in general, fixed incom

i'm certainly waiting to see what we are going to hear from christine lagarde. tos a very fine line she has walk. does she want to exude confidence about the european recovery? at the same time make sure she's getting that support she thinks the economy needs? the challenge will be making sure she does not bid up investors for the price of the euro-dollar. i want to take a look at what's going on in the markets. asian equities seeing reprieve after the stocks we had yesterday in the united states. they are bidding higher. i put the dax futures up there because what we are waiting for today is we are .09% away from the dax being flat on the year below 119.lar we will dig deeper into that scoop we had yesterday out of brussels. 1.29. to get more context on all of this this morning is the chief investment strategist at northern trust management. think you so much for joining us this morning. everyone has been so focused on the tech rally. the question i was wondering is do you think that this is retail led? i say that because we did not see that bid higher for trea

london time, followed by christine lagarde's news conference.xt, we will discuss the future of the economy. this is bloomberg. ♪ francine: you are watching "bloomberg surveillance. i'm francine lacqua in london. this is what the markets are focusing on. a lot of the focus is on the vaccine, valuation, certainly when it comes to technology stocks. the euro is steady somewhat. investors are waiting for the outcome of the european central bank meeting. i'm also looking at crude oil. it is declining but treasuries are gaining. the european central bank is widely expected to keep policy steady. investors will be closely watching for comments from christine lagarde on any hint of whether the stronger euro is becoming a problem. let's get straight to the bloomberg business flash in london with leigh-ann gerrans. lvmh-ann: the chairman of did ask the french government to -- for help in pulling out -- france's richest men was directly involved in the decision to call off the sistine billion-dollar purchase. tiffany has accused lvmh of trying to leverage

christine lagarde saying they talk a lot about the euro but do not target specific exchange rates. yesterday, nasdaq, and also 137, soo highlight watch that space. >> we are paying a great deal of attention to what is happening. very much what we did earlier. this is it -- this is what christine lagarde says the central bank will do. >> the governing council will carefully assess incoming information, including developments in the exchange rate when it comes to simplifications for the medium-term inflation outlook. >> christine lagarde, president, speaking earlier and joining us now. christine lagarde basically indicates it is ok until there is an impact on inflation. >> three ways the ecb can talk about currency. they can talk about principles, how it is not a part of their policy. they get seriously concerned about the movement currency and it could lead to price stability or the aims to achieve inflation goals being undermined. we can go back to worrying more about covid-19, more about the growth prospects, rather than ecb getting too worried today. whenever you see a headline a

and christine lagarde says the ecb is ready to act further to aid the recovery. this as chancellor angela merkel could place further restriction measures to stop the spread of the pandemic. good morning and welcome to "bloomberg surveillance." i'm francine lacqua in london. tom keene is in new york. tom, i have to say all eyes are on the debate this evening with joe biden going up against president trump tonight. the focus is also on what we have heard from christine lagarde, that could move fixed income in your, but that in europe, but euro also saying we are not over this. tom: a little bit of a rebound in euro. i know prime minister johnson will be making comments in some form with the virus front and center. i looked at the statistics, and i must admit when you look at the cases, it really gives pause on the case growth we have seen across europe. as to the debate, kevin cirilli and david westin in cleveland for the debate. it is a late night debate. i'm sorry you're going to be up at a god god-awful 2:00 a.m. to see the drop on this. but it is really somethi

the euro climbing higher on christine lagarde's comments.ing the 30 year bond option. look for that takedown. that wraps it up for me and guy. coming up for me -- coming up in the u.s., former massachusetts governor on "balance of power." this is bloomberg. ♪ david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide, i am david westin. welcome to balance of power or world of business. we will start with the presidential election. with the attention of both campaigns consumed with the explosive reporting with bob woodward's new book about the president's handling of the coronavirus, something the president himself addressed yesterday. president trump: we do not want to have to show panic, we will not show panic. i was very open whether it is to bob woodward or anyone else, it is just another political hit job. whether it was bob woodward or anyone else, you cannot show a sense of panic or you will have bigger problems than you ever had before. david: for her analysis of the politics of the book, we welcome b

christine lagarde speaks in 90 minutes time. disney cuts deep.hey will lay off 28,000 workers at its resort business, leaving one of the deepest economic scars of the covid era. welcome to the program. just gone 7:00 in london. waiting for data to come out from the u.k. economy and some news expected from shell. let's get to the u.k. data first. this is the final reading on u.k. gdp, coming in not far away from where we anticipated it to be. estimate was 21.7. 19.8 percent for the quarter on quarter numbers. these are all negative. a retreat of 19.8% in the second corner. the estimate was 20.4%. that's just a small detail. we are dealing with incredibly large negative numbers. they are very backward looking. the real question will be, how does that data perform? how has the economy performed since the second quarter? how will liberal -- perform as we head into the second bout of this virus? we are in the throes of it now and the united kingdom. what does that look like in the winter? that's where it is when it comes to u.k. gdp. we also have hous

and we have a press briefing from christine lagarde to follow. li from blackrock is still with us. that thet lagarde says market is waiting on. will she talked down the euro? actionsno tangible are expected on thursday. the focus will be on what is communicated. it was our idiot knowledged the euro strength so we could see a potential nod there. broadly, if you think about what central banks can do, the ecb compares to the fed and the boe. they have less room to maneuver. coulddown the line they talk of the asset purchase a little bit more. they are more out of ammunition compared to their counterparts. it depends on how much lower the euro could go. when it comes to european assets, we have been overweight but clients are increasingly inclined to come to us asking --how do we play this? strength to euro what we can select for asset exposure. that means we are domestically forecast -- that means we are domestically focused. manus: does that play out in any way in the vae versus gwth debate? whene say to be discerning we go to this rotation. if you

a press briefing by christine lagarde will follow.till with us is frederik ducrozet from pictet wealth management. in theflation collapsed euro area. how will the ecb deal with that? frederik: it was shocking news for those expecting lower inflation. there was no story where the central bank would not respond to such a surprising downside. you had a colleague who just said a week ago there was no need for the ecb to add to stimulus so it is a tricky communication that comes up on thursday and we will get at least a signal more easing is likely to come. francine: more easing that could be a rate cut? up a this be a signaling rate cut or could we have a rate cut as semesters day? how would the markets take it? frederik: a rate cut on thursday would be a big surprise, but even if president lagarde thinks the possibility of reopening the door to rate cuts, that would be some surprise to markets. it has been historically .he response of the ecb the exchange rate is 13% against the dollar, 4% on a trade weighted basis. significantve a impac

you can carry on and listen to christine lagarde live on bloomberg. just a recap, she is very much marking the downward trajectory in terms of the pressures we are seeing. inflations will remain negative and the couple of months. togetherr euro coming to make the short term inflation outlook for the euro look a worse. alix: even though the words she said we might have heard before there is debate developing for the ecb. are they going to be reactive or preemptive? that really hinging on inflation targets. maybe we will get more on that over the next couple of days. in the markets, a fierce rally in europe, the u.s., a lot of money pouring into tech. the nasdaq 100 futures are being shorted by the most since 2006. pop.e seeing a last week it was about the stronger dollar and now you need to sell the dollar top. yields go nowhere, oil goes nowhere. now ofraho joining us ubs. what the ecb says, what the fed says in stark contrast to stimulus. in the u.s., there is give-and-take on either side. what happens if we do negative stimulus deal? jason: the fed

what do we expect from christine lagarde? laura c.: the hype heading into the meeting has been around euro strength and whether they will continue to talk that down. there certainly going to be this balancing of market expectations where it's going to be all talk and very little action. when it comes to the euro, they are unlikely to actually allude to it in the opening statements. that is extremely rare. it's likely to be pressed on it in the press conference. it's likely to be the case, which is going to pin any kind of concern for the currency strength to inflation. we saw core inflation print a record low and that is perceived as true by the stronger currency. it's likely not going to talk down the currency outright. any mixed messages on that front could see things gaining further ground if they strike a less dovish tone. the: of course, euro-dollar, it's partly the euro story and it's partly the dollar story. what are your expectations for the greenback as we head into what could be a very volatile election in that peri

coming up, we will get the latest from christine lagarde.ays the ecb is keeping an eye on the euro, but she does not sound the alarm. we will analyze the latest ecb meeting next. this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets: european open." away from the start of cash trading. , deputy cio at lyxor asset management, is still with us. we have some alliance from philip lane saying headline inflation is going to remain negative for the rest of the year. he says it is abundantly clear that there is no room for complacency on the ecb has made only partial progress, or maybe he is saying that europe has only made partial progress on combating the crisis. we have forecast going out four or five years from huge market participants saying that inflation could be 5%-10%. what is your take on inflation? florence: i think we have a really different scenario when we look at what is happening in europe and the u.s. in the u.s., we have positive inflation, which is still low, but slightly below historical averages. the situation is quite

christine lagarde will speak before the european parliament today.imes that the climate change should be on the top of the agenda. should they become a big are your of this -- a big buyer of this? pascal: actually, it is very likely that the european bonds, whether they are green or not, but we focus on the greens -- nobody is really in fear of not finding its way to the market. because it is safe. it is backed by probably one of the most stable economies in the world. so, there is no fear around this. -- the see the ecb as primary role of the ecb as biting is green bonds -- as uying these green bonds. it is about having the ecb on board regarding its own accounts. meaning that christine lagarde said a couple of times already before the parliament that she is working, together with the team of the ecb, to the ofsibility of having a sort carbon filter to the assets to buy and the assets to sell. if the ecb come in the coming months, starts making a difference when it buys or when intensity orarding the impact of climate change, that will make a huge d

on hold for now, the ecb is unlikely to make any moves at this week's meeting, but christine lagarde may set the stage for further easing this year. and risky business, softbank plummets on reports it made big bets on derivatives linked to u.s. tech. the nasdaq selloff looks set to continue. u.s. stocks are shut for labor day. good morning and welcome to "bloomberg surveillance." i'm francine lacqua in london. tom is off for labor day. for every american watching, happy labor day and we hope you have a good day off. working on we are bloomberg surveillance to bring you up-to-date -- politics and some of the asset classes. let's get to bloomberg first word news with leigh-ann gerrans in london. leigh-ann: a new poll shows joe biden has a double-digit lead over president donald trump, according to the cbs news survey. the democratic nominee holds a 52% to 42% advantage. support for each candidate is getting more solid as voting day approaches. meanwhile, the survey also says that biden has a six percentage point lead in a battle ground state with confidence. in hong kong, protests have

a lot of what will dictate the markets is not only christine lagarde speaking to parliament but also watchers and later on in the week it is jobs day. they will give us a good indication for the moment of what kind of economy we are seeing in the u.s. tom: very good. i'm looking at euro in terms of the data. euro comes in under 1.17. my eyes are failing me this money. -- failing me this morning. 1.1644. -- dowtures up to .30 futures 2.32. more coming up. us ony o'brien will join the president's finances, as reported by "the new york times" last night. always a continuing story is the continuing american economy with dubs they on friday, in the with jobs day on friday. in the 11:00 hour, danny blanchflower. upures up 27, dell futures 230. stay with us. jeremy stretch next. this is bloomberg. good morning. ♪ franciene: this it's -- franciene: we are getting breaking news out of london. fit and proper is losing its london license. this comes on the back of -- i think it was 12 months ago if i have the timing right, at the time they said uber should be banned because a lack of surveillan

we will be grilling christine lagarde today when she speaks at the parliament at 8:30 u.k. time.tainly a packed week for you. doubt, the brexit discussion will be front and center in terms of what they have got to sign up. maria tadeo has your brussels edition. hsbc rallies by the most since 2009. where were you? the stock is up 9.93%. we will discuss the implications. ♪ anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london alongside matt miller in berlin. manus: good morning. the markets say stay strong. asian equities start the week higher as virus cases balloon globally. futures in europe .2 gains at the open. the castrated just one hour away. these are your top headlines from the bloomberg terminal. commerce bank

annmarie: that was ecb president christine lagarde, saying the surge in the euro must be monitored butut signaling any pressing need to adjust monetary policy. the currency jumped to the highest in more than a week. janet mui from brewin dolphin is still with us. concern?a lack of ?n the euro at what level do they start to get concern? what does a higher euro mean and when does that anxiety -- when do they start to talk about it publicly? janet: i can sympathize with the ecb actually. it is very hard to control the currency level. it is not their mandate but it is out of the market expectation. -- it will euro start to get nervous for exposed countries like germany. yet.e not there the ecb has a ready putting so much stimulus measures 1.3 5 trillion pandemic emergency program, negative interest rates, what more can they do? to impactally need the euro, it would have to have a very bold policy, which sounds difficult for now given so much they have done already? annmarie: yes can lead euro definitely stole the show yesterday. i am interested in the euro-pound, given the weakness we coul

i am really taken by what christine lagarde said about people losing income.about aggregate demand, isn't it? yelena: absolutely. i think what happened early in the pandemic is the fiscal ,timulus provided a little bit quite a lot of a cushion, and we are still seeing the impact of that. that is why we had the rebound in jobs. that is why things are not looking as bad as we thought. andthis is all waning now, we are going to start seeing some interlopers. we will see a decline in personal income. that means that the economy will slow down into the fourth quarter, and the economy will slow down into the next year. is 69%, 70% ofer the american pie. but you know the dynamic is in business investment. what is the state of business confidence that you see in america now? yelena: i think that is the sector that is rebounding simply because there is not enough inventory, but i think that will be one of the laggards. the consumer is coming back, whether it is slower not we can , but i thinkthat the business sector will be lagging behind simply because there is so muc

interesting press conference coming up with christine lagarde. we've been looking at this every morning. looking at market reaction. john, a little lift in bonds. offer those ecb headlines largely expected. jonathan: a left in equity futures as well. not sure it is related to that decision. .3%.ive about maybe the success rate later will be defined by one currency pair, euro-dollar right now at session highs. tom: euro strength getting up near the 120 level. we have lots to talk about, we welcome all of you worldwide, across this nation with a number of themes, particularly in the markets. we are going to get to equities and derivatives in a moment. on the nasdaq, we've got to go into this. the response on twitter yesterday was on fire. the premier league. they've all done well as the mlb struggles towards a bubble. the interest is, team surveillance is riveted by the opening of the premier league season. waythan: she is making her on her decision on who her team is. lisa, are you getting enough suggestions? are you happy with what you are decidi

stephanie: this is the first time we have seen a shift in the christine lagarde ecb relative to the centralank under mario draghi. the exchange rate, although they do formerly say they are targeting the exchange rate, the exchange rate seems to loom large in their strategy. they want to keep it down to help the economy. we get the impression the council overall was not so concerned about the level of the euro or the fact it is likely to go up further. that is a shift, and it will make it harder to hit the inflation target, which at the moment they have no sign of hitting. it looks like in two years time the core inflation rate will be 1.1%. half of the target they are trying to reach. their they have indicated extraordinary bond market program will go through the middle of next year. some thought she might extend that. when do they have to address that question of when they go further with that program? stephanie: an interesting debate on the council about whether the amount they previously talked about, the 1.30 5 trillion euros is a ceiling or the overall amount they will spend, and then

christine lagarde making it clear that the ecb will do whatever it takes. we've heard that before, haven't we? will she succeed? judging by inflation prices, the market has serious doubts. we will talk about that in just a moment as well. job cuts continue to mount in europe. the engineering giant continental laying out a restructuring plan that could cost thousands of jobs. shell is going to cut 9000 jobs. disney will slash 28,000 positions. let's talk about where we are with the market story this afternoon. equity market and focus. really a topsy-turvy session in europe here. we initially saw quite a negative story coming out of europe. in the united states, maybe some stimulus talks helping propel the story a bit higher. the s&p up by over 1%. the euro has come back. it is still negative on the day. we did have a $1.16 handle. we now have a $1.17 handle, but we have seen continuing dismal inflation data out of the eurozone. yesterday was germany. today it is france. a -0.6 print. we get the final number friday. alix: totally different from the u.s., in t

that was the ecb president christine lagarde addressing european lawmakers on monday.attle lines are being drawn ahead of -- or i should say at the heart of the european central bank over whether to add monetary support to head off in the economic slowdown or wait for stronger evidence that is needed. most economists predict the pandemic program will be expanded this year, probably december when new economic projections are published. we are joined by the chief economist at bnp paribas. -- the your take on firepower the ecb even has? even if they wanted to do something, could they move the needle on growth and inflation? >> that is the key question. ,ou can put more money at work to restructure your balance i think weer, but are in a situation where fiscal policy is absolutely crucial. countries the various , think of germany, france, and other countries, will be takeul, but it will several years before we have inflation even converging a tiny bit toward the target and that is the headache of the ecb. anna: good morning to you, william. get inflation back to where it n

christine lagarde said repeatedly she does believe the european green deal is the way forward, whichs striking to hear take what some is a political stance, to say climate change is real, we have to tackle it, and the european central bank will do its part. cities,rn countries and many voters do care about the green agenda. it makes the institutions look on the same page as the voters. what is interesting is what the european commission is doing, because if you look at the recovery fund, this huge recovery fund for countries hit by coronavirus, they want to convert 30% of the total to be financed in green bonds. that means we could see 200 million euros in green bonds hit the market. this would be the european commission tapping markets. anything issued by the european commission would be aaa bonds. they are creating a huge market trants that huge en anyone can buy. they believe this is a huge market for the future and whoever gets there first and gets to create a benchmark for that market will be successful. the europeans want to create that benchmark by issuing these bonds. marc: i

: so it's going down, but i'm curious because i feel like some of the language we heard from christine lagardend even from draghi prior to her is there seems to be a little more language around the idea they could meet the inflation target and inflation was coming down the pipe, but i'm not quite sure why they don't seem to dial back some of that rhetoric. >> absolutely right. it is all the more stunning that when you see what's happening , and wages arecy , one factor is fiscal policy and it was mentioned by the chief economy and the president of the ecb as the most important factor behind the upgrade of the inflation outlook by 2022. . the strategy is that the ecb boostingan rely on inflation of wage growth. hard not it's very only for madame lagarde but the ecb economist who has finally said actually the euro does matter to us in terms of the currency where it's currently trading. it does have some bearing on where we set policy. meanwhile, the u.s. is re-fleeting and it's hard for europe to catch up. europe is still being hindered to some extent by what's happening with rex it. doesn't hav

china south africa there's been a prediction that a lot of that convergence is going to slow and christine lagarde actually has a voice and concern about this one thing that's interesting to see though is they have not slowed their production down as much as the west has during a so what you might see are 2 factors or 2 trends while the factor of reverse globalization in terms of re on shoring but you might find convergence actually expedited because manufacturing has continued in a lot of the emerging nations whereas it hasn't to the same extent in more developed nations like the u.k. and like the euro's. yeah we're speaking with the hillary ford which troll marc business development consultants in the washington and the veteran c.b.s. new york business reporter joe connelly joe the big story at the beginning of the shutdown is something you alluded to earlier is business is shifting to services and more recently you've been reporting on businesses pivoting the way they actually sell example. i think this is the big story going forward now here's one example we did a story this week on edge of a

christine lagarde painted an optimistic picture of the euro economy, saying manufacturing continues tomprove and economic data suggests a strong rebound. the ecb kept policy on hold and tempered its forecast for economic contraction to minus eight from a june forecast. it will be around 5%. overall, the balance of risks to the euro area growth outlook does seem to remain on the downside. reflectsssment largely the still uncertain it, and -- uncertain economic and financial applications of the pandemic. karina: citigroup named james fraser as its next ceo, making her the first woman to head up a wall street bank. she is a 53-year-old and has been with the bank since 2004 after a decade with mckinsey. she will replace mike corbat, who is retiring after more than eight years in the top job. she will join the board effective immediately. hong kong police have arrested 15 people in connection to a surge in digital sales. by media company is owned jimmy lai. august, -- police said the arrests were made on suspicion of illegal funds were used in a conspiracy to defraud. global news, 24 hours

the ecb unlikely to make moves but christine lagarde has set the stage.ated to tech. u.s. stocks are shut for labor day. welcome to "bloomberg: surveillance." i'm francine lacqua in london.

of its earnings arrive from that region reporting for cnbc back to you guys >>> ecb president christine lagardeaid the central bank is monitoring the euro as ecb extended asset purchases until june next year keeping policy rates unchanged in september and held rates steady at 0.5% and lagarde highlighted how the stronger euro could impact inflation targets. >> we do not target but we monitor. we monitor carefully the appreciation of our currency has an impact on our inflation as i said, it is not a policy target for us. i'm not going to comment on the level of our currency but it is clear that external value of our euro is an important determination of our area. we'll continue to monitor the development and be attentive to them >> ecb board members are speaking out following the meeting. >> the euro appreciation will dampen the inflation outlook while he says the exchange rate will be monitored going forward. >> forwarder fed chair has sited the inflation for his biggest concerns of the economy. the man that coined the phrase irrational ex ub rans has down played the outlook >> basically the re

last time we heard from christine lagarde was in july. she was cautiously optimistic.irus cases. the recovery has slowed down. we are likely to hear more pessimism setting the stage for cutting before the end of the year. matt: thanks very much. dani burger talking to us about what to expect. on thursday we will broadcast that for you as it happens. coming up, more on bloomberg markets with chris bailey. ♪ look here, it's your very own all-in-one entertainment experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus, x1 also includes peacock premium at no extra cost. this baby is the total package. it streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached. ♪ guy: 3:00 in london. i am guy johnson. welcome to bloomberg markets. labor day the united states. markets a little quieter than normal. the stoxx 600 is sign

christine lagarde has painted an optimistic picture of the euro economy, saying manufacturing continueso improve. hold.b kept policy on she said the bounceback next year will be around 5%. >> the balance of risk to the area is to the downside. this assessment reflects the uncertain economy and financial implications of the pandemic. >> hong kong police have arrested 15 people in connection with a surge in next digital shares. the media company is owned by vocal government credit. in august, it soared by over 1000%. the arrests were made on suspicion legal funds were made in conspiracy to defraud. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. shery: still ahead, time is running out for tiktok. the trump administration says it will not extended deadline to sell the video apps u.s. operations. on the brink of collapse, how is spat over policy threatening to tear the new south wales government apart. ♪ >> president trump says he will not extend the deadline to sell off t

manus: if you think the ecb are going to sit on the sidelines, if you really think christine lagardeto sit on the sidelines and let euro-dollar go to $1.30. gotmberg.com, when you have , european equities. again, this will come back to just how strong germany is. they extend part of their furlough payments. the biggest gain since august 2009. that sets the tone in terms of bifurcation. there is a bifurcation between the u.s. and europe. gap or doclose that you believe the u.s. is alpha and europe still plays catch-up? annmarie: sticking to the u.s., i want to show you live pictures out of portland, oregon, that have been demonstrating for weeks against police brutality are marching to the mayor's residence. we will have coverage of this throughout the morning and continue to bring these live scenes out of portland. laura: president donald trump is planning to visit kenosha, wisconsin, the city where two protesters were killed last week. speaking yesterday, he suggested that the man arrested may have acted in self-defense. vice president joe biden slammer the president for not calling

christine lagarde and other officials having knowledge that these are temporary factors.ll go back positive in the next few months. you can see the breakeven, the blue line, shows that when you look out five years, they still see inflation far from target. it is similar to what we have seen in the u.s. and japan. this is why the ecb appears to be opening the door to looking at this having the same kind of debate the fed had for over a year, perhaps making a move. shery: we have breaking news at the moment. we are hearing the tokyo stock exchange is investigating reports of network issues. we don't have more details, but the open in tokyo is in about 20 minutes. the japan exchange group spokesperson now coming out saying the tokyo stock exchange is investigating reports of network issues. we will get you more details as we get them, but the open is supposed to be in 20 minutes, so we will be watching closely. gpx holding trade of all security due to network issues. actually we do have more breaking news. american air will begin laying ,ff 19,000 people tomorrow according t

number of things the covid-19 crisis has accelerated that we think are inflationary again, what christine lagarde was mentioning this morning. if you add all of those up, then i think the pictures have fully appreciated it >> what are your thoughts on madam lagarde's speech >> i think in many respects, what we are seeing is this policy revolution. monetary and fiscal policy are working hand in hand to address both the covid crisis and broader economic impact of the crisis that is something i think investors have begun to factor into their markets when we look at things like fiscal spending, it becomes important. they are linked together the ecb looks going forward and obviously the inflation profile that they are focused on they are looking at how governments respond to the fiscal policies as well as monetary policy. so really it is this policy revolution that continues we are seeing in the united states and will continue elsewhere. >> let's dive into some of your asset class views. you have turned neutral on equities, credit and cash. >> one area we like very much is markets globally where we th

what do you think we will hear from christine lagarde? you work quite clear with me.is not the beginning of a currency war. i would disagree with you. willdo you think lagarde do next week in terms of rhetoric on euro strength? yogi: i think she will make comments to try to slow down the pace, but there is euro weakness with dollar strength that you cannot ignore in this marketplace, and remember what is going on on the broader markets. u.s. markets are at all-time highs. everyone is looking to take money off the table. giphy -- withd the geography, you will see a lot of pressure supporting euro strength, so any rhetoric she can make to slow down the strength will not stop it but is what we would expect to see in this environment. backdrop, markets in europe are down. in germany, flat. in france, down about 14%. there is a contrast between some of the players in europe. but that is her challenge. she has got to come up with a statement across the board. manus: ok. well, you know what? she is a formidable tour de force when it comes to telling the way it is. our guest

the euro strengthening after christine lagarde said she will be speaking -- a historic day on wall street. citigroup names its next ceo. he is the first -- she is the first woman to take the role that a major global bank. we will discuss the challenges ahead for her. citigroup and other banks are planning to return of their selloff. i speak with the ceo looking to clear the air literally for employees. let's get a quick check of the market. despite the choppy session after the ecb announcement and it has been quite choppy in the u.s., equities are now lower. all three indices are down. the dow and s&p down by .4%, nasdaq down .1%. the 10-year yield at 70 basis points. little movement but enough to show there is some kind of reaction. the euro continuing to strengthen. above 118. we will stay on the euro. surgeine lagarde say the in currency must be monitored. that only called for the european to strengthen further. our first guest is lena komileva . a lot to unpack out of the meeting but how is the european economy doing? economy wasropean recovering quite strongly from the effect of the

matt: we see the euro on the screen 118, should that be a concern for christine lagarde?or now our fx strategists think it is not. you need to go 120 for it to start being a worry. from an asset allocation standpoint, the fact we have than looking at this for a while , it makes sense. it is something we would continue to do. more importantly analysis with the recollection is low euro -- and it could be one of the signals as we go into november. still got a lot to talk with you. there are expectations for a better jobs number today. how fragile is the underlying recovery in the united states? we look at how food poverty has worsened in america during the pandemic. this is bloomberg. ♪ matt: good morning from berlin. i am matt miller. these are today's top stories. u.s. stocks hit hard as a tech sends the nasdaq down. asian equities fell and now futures are pointing to even more declines today. marketkman tells us jitters are no surprise considering corporate value and the proximity to a u.s. election. we will hear from him throughout the day and the focus, we will turn to

christine lagarde a very visible at the ecb managing the message forward on a diminished toolkit.n any number of cap -- any number of topics, we are thrilled nouirel roubini could join us. we want to save the american politics for a bit, i want to address the moment for europe. i must speak on the eastern mediterranean, where you are in israel. lagarde, the disinflation and deflation is chronic. you have been so good over the years about the chronic condition. give us an estimate of the chronic nature of our dearth of aggregate demand, diminished inflation and what it means for all of us listening. severity of deflationary pressures lacking good markets and labor markets is going to continue. keep are going to monetizing fiscal -- for years to come, from what rf -- [indiscernible] eventually, these negative supply shorts are going to lead us down the line two years from now to stagflation, recession and rising inflation. short-term deflationary pressure, but over the medium turn we have the opposite problem. francine: what does that mean? if there is inflation concern, is it the b

christine lagarde speaks in two hours. good morning. just gone 6:30 a.m.he city of london. what a wild evening it was. a little substance, a lot of chaos. in mywas more decorum model u.n. high school debates than we saw with president donald trump and joe biden. mustlin's called it a hot -- mass. swing voters said america was the big loser in this debate. manus: absolutely. the insults went backwards and forwards. there was a lot of shouting over one another. biden going over the wealth differential. biden going after the status. trump bombing back in regard to biden's son and pushing towards the family narrative. how does it play out for markets? the equity market has rolled over. we've done a range of 1%. s&p 500 down. the pmi down in china. it's the tale that is wagging the dog. volatility in the equity market. euro stoxx 50 down. what can the guard -- lagarde bring to the table to reinstate the cyclical narrative of europe? the dollar is big. 1.7% this month. the first month of gains in six months. oil is lower. the grim reaper's came to bear at the co

ecb president christine lagarde says there is still room to add stimulus and it can adapt its program-- if the euro zone economy needs help. she's is the third quarter will see a rebound. ecb tosts expect the expand its $1.5 trillion bond buying to bolster the rebound and revive inflation. should keepthe eu pursuing a trade deal with the u.k.. it warns any british violation of the brexit agreement would bring talks to an end. former u.k. prime minister theresa may is the latest conservative to reject the bill saying she will not support the move. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. shery: federal reserve chair jerome powell says the u.s. economy is facing a long, uncertain road to recovery. he is set to speak alongside steven mnuchin tuesday. let's bring in our global economics and policy editor. what are we expecting to hear from powell? >> we have a pretty good idea. his prepared remarks were released this evening. has been saying abou

alix: christine lagarde was testifying in front of you parliament. she says the exchange rate is not a policy target for ecb. she has not commenting on levels of euro come a saying they are monitoring them. these are typical responses you would hear from the head of the ecb. when does central bank really care? don't have an we insane trade target, but there are a lot of bots -- buts. levels, it ist about speed. through 120, they will be ok with that. it would not eek in a forecast. pushbackhink the stronger. at this point on balance, they are willing to talk and not go beyond talking, that is the pace for depreciation. guy: the euro-dollar rate has gone 120-116 really quickly. do you think that run is over? do think the dollar has potential to strengthen? >> i think that run is over. we have the knee-jerk reaction where the dollar is trading as the safe haven, it is being respite. regarding side is ucb, they have been on the euro a bit more of late. riskwe do have the u.s. ahead as we head into the home stretch of the election. i think that it's goin

are we going to see the same from christine lagarde? it was a very quick move in a short period of time. doesusly, the currency matter for the inflation outlook. it came on a day a very low inflation. what is that they are really going to do? don't know how much the ecb can do then push on rhetoric. you may see a slowdown in the euro-dollar moves. you mentioned that pretty awful print on the inflation side. how does that translate terms of what comes next for the ecb? does it translate in some ways to your positioning being long spain versus france? think then, i inflation numbers over the summer have been highly distorted by covid effect. europe was tood inh in july and too low august. i think the ecb understand that. meeting in ecb september is going to be a pretty boring one. the ecb in spain versus germany, the moves were so significant. story fore underlying peripheral bonds and europe are still pretty positive. germany says the country has reduced their reliance on exports. exports are huge for the single currency market. do you a

nasdaq down. 1.85%.ion by -.8 it is a tricky one for christine lagarde. just south of 70 basis points on the u.s. 10-year. the story of the moment, what is happening with big tech and the options market. the perfect guests is stuart kaiser. let's keep it super simple. what is the message for the client given what is going on right now and the last few months? stuart: you can interpret this to ways. the first is that this is the last gasp of the tech rally and the last legasing to the rally and hedging. need tothe thing you worry about in terms of large-cap tech leadership and quality leadership. the flipside is this is a healthy correction. you have seen across the board in the options base activity that could be read into ways. people were chasing the rally by buying call options and stocker placement. people selling the stock and replacing it with calls to reduce risk. depending on which side of that you are on, you will have a slightly different view of things. people are piling into the tech trade, for it is prudent for me to reduce risk with key upco

central bank that will be speaking later today, and traders will be watching that closely after christine lagarderred a rally in the euro yesterday when she delivered relatively mild comments on the currency's surge. it will be interesting to see how officials will position that. we already have this morning, the chief economist at the ecb sending -- setting a tougher tone on friday, signaling that more monetary stimulus may be needed. so we have that, and coming up on bloomberg markets, we will speak with the irish minister of finance of public expenditures, so maybe he will have a thing or two to say about euro. that interview coming up at 10:00 a.m. in new york and 3:00 p.m. in london, and this is bloomberg. ♪ ."m: "bloomberg surveillance on this september 11, i am tom keene in new york, francine lacqua in london as well. we will have more remembrances this morning. stay with us on bloomberg radio and bloomberg television. 19th a very different remember its of september 11, a year of pandemic, a year of politics. we address politics, folding it right into pandemic, with elliot hentov, really f

in foreign exchange, i think tomorrow is going to be fascinating for ecb president christine lagarde. you don't like a strong euro, what are you going to do about it, and when are you going to do something about it? that is tomorrow's story. from london and new york, this is "bloomberg surveillance." ♪ >> longer-term is not looking good right now in terms of support for consumption. >> this economy is dynamic, but not dynamic enough given the shock it has received. >> there's a different correction then we have seen in the past. >> any shock higher in yields is when i see the fed putting a lid on how high yields can go. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. jonathan ferro, lisa abramowicz, and tom keene. a spirited wednesday on "bloomberg surve