and office of racial equity. >> thank you so much supervisor walton and to the g.a.o. committee chair mar, supervisor peskin and supervisor haney. this is important to me on so many levels both the role of the human rights commission but also as a black woman in the city. i have experienced levels what i perceive as anti-blackness from my peers and colleagues and folks that work with me and don't always feel there's a recourse to address that. i appreciate this process and time. i will try to be mindful of time and move quickly. as supervisor walton mentioned, mayor breed issued directives in 2019 and those directives led to the development of a diversity equity and inclusion task force. the human rights commission was asked to help facilitate those conversations with the idea that folks would come in and share ideas and concerns and consolidate their feedback. we failed to gather consensus on next steps. what i will highlight is the role that hrsc held. that first meeting was focused on the pieces that superviso

provide equity up, you know, 12 -- private equity up 12%. it's been backed by a very strong i.p.o. market. public equity has also posted a very strong rebound, record setting rebound, actually, and is now up about 9% for the year. where we have major tilts in technology and china, they're up about 15% this year. you heard me comment about natural resources there. i coudo have some comments the at the bottom of page 20. asia alts recommended an allocation. blue torch, which is a new relationship for us, credit strategy, the board approved $15 million last month, and it did close at 15 million. in june, the board approved an allocation of $75 million to their flagship fund as well as [inaudible] fund. good news today is we just did receive an allocation for the $50 million in the flagship funds. [inaudible] one of our flagship investments in the life science phase, very difficult capacity here. we did request $75 million. we received $50 million. that was primarily because of our going back and forth earlier in the spring -- excuse me, yeah, early spring, march, april period -- about

and office of racial equity. >> thank you so much supervisor walton and to the g.a.o. committee chair mar, supervisor peskin and supervisor haney. this is important to me on so many levels both the role of the human rights commission but also as a black woman in the city. i have experienced levels what i perceive as anti-blackness from my peers and colleagues and folks that work with me and don't always feel there's a recourse to address that. i appreciate this process and time. i will try to be mindful of time and move quickly. as supervisor walton mentioned, mayor breed issued directives in 2019 and those directives led to the development of a diversity equity and inclusion task force. the human rights commission was asked to help facilitate those conversations with the idea that folks would come in and share ideas and concerns and consolidate their feedback. we failed to gather consensus on next steps. what i will highlight is the role that hrsc held. that first meeting was focused on the pieces that superviso

and office of racial equity. >> thank you so much supervisor walton and to the g.a.o. committee chair mar, supervisor peskin and supervisor haney. this is important to me on so many levels both the role of the human rights commission but also as a black woman in the city. i have experienced levels what i perceive as anti-blackness from my peers and colleagues and folks that work with me and don't always feel there's a recourse to address that. i appreciate this process and time. i will try to be mindful of time and move quickly. as supervisor walton mentioned, mayor breed issued directives in 2019 and those directives led to the development of a diversity equity and inclusion task force. the human rights commission was asked to help facilitate those conversations with the idea that folks would come in and share ideas and concerns and consolidate their feedback. we failed to gather consensus on next steps. what i will highlight is the role that hrsc held. that first meeting was focused on the pieces that superviso

equity position. one of the narratives that has come through from a number of other people is equity volatility is expensive relative to credit volatility. with that in mind, is it too late to buy volatility in the equity market, which would correspond with your moderately cautious view on u.s.? monica: i would say cautious for the time being. prices are increasing. there is uncertainty. i wonder why this has not been happening before. the micro fundamentals from the equity market -- and in particular to the credit markets. it was something that makes us feel comfortable. this is the reason why we were oriented to this. the earnings season might onvide and shed more light the direction, and may be we can into the value equities. it is an amazing couple of days in terms of the markets. you have sap bear market yesterday. the biggest one-day drop since 1999 yet i flip to cyclicals like hsbc this morning, good news coming through on the guidance and on the credit losses. i just had a conversation with in

provide equity up, you know, 12 -- private equity up 12%. it's been backed by a very strong i.p.o. market. public equity has also posted a very strong rebound, record setting rebound, actually, and is now up about 9% for the year. where we have major tilts in technology and china, they're up about 15% this year. you heard me comment about natural resources there. i coudo have some comments the at the bottom of page 20. asia alts recommended an allocation. blue torch, which is a new relationship for us, credit strategy, the board approved $15 million last month, and it did close at 15 million. in june, the board approved an allocation of $75 million to their flagship fund as well as [inaudible] fund. good news today is we just did receive an allocation for the $50 million in the flagship funds. [inaudible] one of our flagship investments in the life science phase, very difficult capacity here. we did request $75 million. we received $50 million. that was primarily because of our going back and forth earlier in the spring -- excuse me, yeah, early spring, march, april period -- about

it will not have notable impact on equity sectors.ing youthere think a biden administration would change in terms of extra taxes, breaking up? is that already priced in? one thing is corporate tax issue. expectedinistration is to go at 28%. that would have implications. the other thing, it may well impact upon markets in a different way. companiesa suggestion bring back companies to the u.s. to benefit from lower taxes but ended up investing those funds rather than putting them -- [indiscernible] -- the equity rally. obviously, if the situation runs in reverse, you may see equity markets stay put for tax reasons. one,in textbooks, chapter they say markets don't matter. in the vicinity of chapter 23, they say they matter. you straddle this beautifully. what do you make of the wall of money out there given the set of worry? the presumed wall of liquidity available has to change how we analyze. is there a wall of money? we have been talking about it for years. sometimes it does not appeal. individualsd theoretically can borrow huge amoun

equities lower.berg. ♪ throughout the advanced countries, the pace of economic recovery is slowing and i can't think of any exception to that general statement. the president of cambridge weighing in on this market and economy. looking at the price action, a tough start this morning. down 1.5%on the dax, on the ftse. a weaker sterling helping things out. bid into the bond market, treasuries firmer. across the continent, big rally germany, italy catching a bid. risk aversion to start things off this monday. your stock movers, back with us dani. dani: a big turnaround compared to what lufthansa did last week when he reported narrow losses for earnings. shares gained 12% last week. today, big declines in lufthansa share price, down nearly 3% after a report saying they are cutting more flights. they will temporarily close some administration operations because of weaker demand. that, all from an internal letter to employees. thebig mover by far, biggest loser for the stoxx 600 sap. the cfo, telling you h

equities doesn't give you a good picture for global equities. --opean equities of you have equities as you have described have had a terrible time. they look credibly low comparable to the u.s. equitiesassets in u.s. have really not taken account of the probability distribution of how this will play out, but also taken account of the damage that has been done and will continue to be done to economies and business models. tom: i just looked on the bloomberg at a log chart of the value line geometric index, which is an old war horse. it takes out a lot of the emotion, a lot of the dynamics of the movable feast of all of these big cap stocks. it is extremely well contained, and as you said earlier, basically a pullback. how do you know when a bull market ends? how do you know as a fundamental guy? james: you actually don't. you know in the rearview mirror. i can't quite remember who, one of the sell side analysts was drawing comparisons to this earnings season in the u.s. with season,000 earnings where you got solid looking earnings, lots of beats

we have moved our strategy to equities. we are aggressively longer equities. we have moved the last few months, but most of those have been in the emerging world like andnesia, chile, russia, indeed malaysia and china. it european equity markets, is around what it was in april. so there is still opportunity there. it may get bigger and more attractive before it narrows. i would say we are cautiously moving into some equity markets, mainly the ones that present more attractiveness right now. annmarie: you say you take these long exposures into em currencies like the brazilian real, russian ruble, turkish lira. are you not worried about the risks? covid, the election, geopolitical risks? guest: yes, we are always worried about risks. we need to take risks to get returns. it is a balance between the prospect, the attractiveness, and the risks that are out there. they are well known by everybody else and therefore presumably in the price. and turkey are trading at their lows for the year in real effective terms. some are at their all-time lows. at one point, you n

and build the equity position. normalizing.s we are in an environment of low interest rates. there is a reluctance to withdraw fiscal stimulus in most parts of the world. evaluations in the u.s. are slightly expensive. be justified can by how low interest rates are. we feel more comfortable with the risk. specifically as rates are going up. there seems to have in some progress and how to deal with the virus come how to manage the virus. taking precautionary measures. medical treatment. feel moree comfortable with the risk in the market. up inld not be to cut day-to-day movements of markets. in day-to-day movements. >> i want to update viewers. the president of the u.s. and the first lady have just tested positive for the coronavirus. you can see markets alongside me, a massive amount lower. s&p futures down 1.5%. this is a huge risk to the markets. one that was not priced in. it was going to be a volatile session. many say it is a contested election. at the health of the president of the u.s.. ask.e to u.s. jobs re

on chinese equities, hong kong equities, and singapore equities.news flow that has , this focus and emphasis on self-reliance and local demand. we definitely do see a very strong interest in chinese equities from investors. thank you very much. our guest host this morning on china and the oil market risk. consolidation, consideration. deutsche bank could consider, day early next year. more conversation with the ceo and matt miller. that is on the way. this is bloomberg. ♪ manus: this is "bloomberg daybreak: europe." watching offer plenty of central-bank action. ecb president christine lagarde will take part in a video conference on economic and monetary union. her speech comes after european finance ministers picked frank eldon to join her team. manus: federal reserve chair jay powell will speak at the national association for business economics meeting. will he make another plea for more fiscal stimulus? at 1:00 a.m. tomorrow, the boj governor kuroda will address the nabe conference. deutsche bank could consider m&a as early as next year if its pr

they're in essence telling you to buy equities. i think someone dismissing that is short sighted i would definitely agree with rick and buy equities. >> the size of one's wallet doesn't necessarily make them always right, bryn >> that's not necessarily true, though >> do you agree with the call? if you agree with rick and black rock, then now is the time to buy stocks, regardless of the short-term noise over election and stimulus >> we already own stocks i think everyone on the panel already own stocks we're down here in texas i think houston has 26% of the oil and gas jobs here. definitely last night it doesn't swallow well in terms of fracking and what have you the election is in two weeks we're going to get clarity that being said, monetary stimulus and massive fiscal sti stimulus from whoever gets elected is going to come to a theater near us. to say to get stimulus and equities won't go higher, i don't know how that can happen. >> earnings have be good enough to justify the moves you're going to get come downs in stocks you've

looking at equity indexes up -- the european equity indexes are up.roader stoxx 600 index gaining about 0.5%. take a look under the hood to see which industry groups are leading the charge. and autoee that auto parts maker are doing quite well. telecoms as well as banks and retailers are all. it does been a weekend of speculation about president trump's health. white house physician sean conley admitting to giving a misleading statement about the president receiving oxygen. in a video on twitter, the president says he has learned a lot about covid-19 over the last few days. >> it is been an interesting journey. covid learned a lot about . i get it. i understand it. it has been an interesting thing. for more, let us go to our reporter out of new york. the do we know now about president's condition? we have one dr. telling us conflicting things. serious experts from johns hopkins say he is doing better and they go home today. >> we will have to see if he is discharged to the white house later today. many doctors sounding the upbeat tone. he has gotten t

equities have gone on fire.s to us it is pretty clear, it is equities moving right down the risk curve. equities, high yield. the riskier the better. those are the assets that have benefited. tom: this is your wheelhouse. does the underpinning economics and global finance lead to certain instability at some point, or are there so-called lied paths that get us -- so-called glide paths that get us to a successful conclusion out there? michael: it is interesting. you consider the ratio of debt to gdp and a lot of major countries like the u.s., and it has certainly got this year, is that the source of instability may be down the road. the question is, defund rates stay really low? does economic growth pick up? we saw decent numbers out of china overnight. if we see a reasonable recovery over the next 12 months, it probably sets the stage for that instability to diminish. but if the economies bump along at a very grim rate, it could be an unstable situation. tom: but which are you modeling, a grim rate or half-full?

equity markets in fairly fine form today. when it comes to european equity futures, we moved to the upside. u.s. equity futures also point to the upside. we don't have real concrete progress in u.s. stimulus, but they are talking and they will continue to talk for the next day. stephen mnuchin, treasury secretary, set a lot of progress has been made. let's look at where we are across the asian session and in some currency markets, as well. we have the asian session dominated by what has been going on or not going on. stimulus talking lifts global risk sentiment just a bit. we also have the yuan moving higher. there is a holiday in china. broadly, we are fairly risk on, it seems. let's get into a conversation with laura cooper, our macro strategist. it seems there is some anticipation with progress around stimulus even though there is absolutely no deal as yet. laura: you said it quite well. markets do seem to be getting ahead of themselves. the fact that we are still seeing these negotiations ongoing, the fact that we are , m

green across the screen when you look at european equity futures as well as u.s. equity futures.have an entire day to get to. it has been messy when it comes to politics in d.c. the president seems more willing now for a comprehensive stimulus deal but everyone is skeptical whether or not we will get it before november 3. we are 25 days away from the u.s. election. this is bloomberg. ♪ are you frustrated with your weight and health? it's time for aerotrainer, a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. do the aerotrainer super crunch. the pre-stretch works your abs even harder, engaging the entire core. then it's the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. planks are the ultimate total body exercise. build your upper body with pushups. work your lower body with the aerosquat. the aerotrain

equities.ast for the last two decades. as for election years, recent history not exact kind. we have seen october declines before the last three presidential elections, 2008, 2012, and of course, 2016. this time around, we've got an anything goes election, no fiscal stimulus on the way, and all of this against a backdrop in which we could see a second wave of covid. that is before we even get to the fundamentals. earnings season begins in about two weeks. says estimated earnings are going to fall 2.2% year-over-year. guy: absolutely. comms make forh the best month. for more on what we can expect from the markets this month, we are joined by jeff kleintop, charles schwab chief global investment strategist. what do you expect from october? >> i think october and probably the fourth quarter is going to be defined by the volatility we just talked about. it is a classic month for volatility, and there are a lot of stars aligning for that this time around. there's a big battle going on, and i don't j

they are not rallying as much as when you get a selloff in the equity market or a rally in the equity market. my question on foreign exchange is a pretty simple one. do you get downside protection k something like aussie, iwi, again something like japanese yen? tom: there's a cost to effecting a transaction. anytime i hear the word option, i hear expense, and that expense takes out any potential return from the hedge. all of my radar is up on this, i'll be honest. jonathan: some of those positions were being built up over the last kabbalah months -- last couple of months. equity futures up 14, 0 .14% -- 0.4% on the s&p 500. westmacott,ir peter former u.k. ambassador to united states. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. it was a debate heavy on policy, without all of the dramatics of last week's presidential event. vice president mike pence and kamala harris squared off last night insult lake city. not surprisingly, the first question had to do with the coronavirus. pence said president trump has put the health of the american people first. harris s

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equities doing nicely. equity futures near session highs, up 27. we advance 0.8%. i think there's a story here that is remarkable. what is happening in europe right now, lockdowns, restrictions across the u.k. come across the continent. france, italy, spain. the euro still retaining a $1.18 handle going into some data which hasn't even looked good before all of this. it is just something to look out for. in the bond market, zero .70% on the 10 year yield, even with all market,alk -- the bond 8% on the 10 year yield, even with all of that talk. joining us now, amy wu silverman, rbc capital markets equity derivative strategist. then testers get you with us on the program -- fantastic to get you with us on the program. volatility was so elevated a few weeks ago. then we faded. then we came back a little bit more. what is the approach now? amy: it has been fascinating to watch because the last time we spoke, the options market was clearly pricing a contested and protracted election with uncertainty very high in december. that has completely gone away now, and the optio

anything other than the fantasies equities and able -- equities enable. i don't think it is high-volume and tie growth. tom: what is the view on the american labor economy? i believe elections are about jobs. we learns that in school, didn't we? you are doing pathbreaking research on this. what is the latest you have on the labor economy so we can brief the politicians all on this? daniel: the most salient statistic right now is the continued high levels of unemployment insurance claims. they range between 800000 and 900,000. this is not stopping. we are getting people who were previously reemployed back into the pool of people who have been laid off. this continues us both small and medium-sized enterprises begin to determine whether or not they can make it for the long haul, those that were propped up by ppp and other programs. you are now seeing substantial layoffs by large businesses, corporations, airlines, etc. that have delayed that pattern, and that is contributing to the problem. is -- thatthat that this is occurring in a vacuum, while jobs pictu

another remy cointreau, equity called higher this morning.e back out and about and buying some cognac. increased demand in china and u.s. sales. they expect their earnings to be smaller than previous -- declines to be smaller than previously forecast. operation profit, they seek declining 25% to 30% in the first half. anna: dani burger with your stocks to watch. , maybe at reckitt keeping everyone's dishwashers going. they make detergent. coming up, we will speak to the ceo of swedbank. the numbers from swedbank, we will keep an eye on that at the start of trade and talk to the ceo at 8:20 london time. this is bloomberg. ♪ anna: a minute until the start of cash equities trading. here are your headlines. better-than-expected third-quarter profits in sergio ermotti's last laugh. it has set $1.5 billion for share buybacks next year. crisis measures. the island's government imposes some of the most tony and measures in europe -- draconian measures in europe. sea.ine day in the forecasters don't see a deal before the november 3 election. we will h

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

we also cohosted a congressional briefing on advancing racial equity. it should go without saying that this is an unprecedented pandemic. the likes of which has not been seen in this country. seenve certainly disparities in past public health emergencies. the pandemic has greatly exposed trust for america's health has been advocating. calling for data disaggregation. we are also focusing on other issues. calling for investment in public health infrastructure. this includes increased funding at local levels. as we prepare for a vaccine, it is important to realize that hesitancy and access issues are real. the underlying reasons are many, from higher rates of being uninsured or underinsured to lack of act as to health care to .istrust as you will hear from our panelists today. leadingbeen one of the voices advocating for policies that would increase equitable vaccine access. we advocate for increased funding for the centers for disease control. we have heard many saying that this pandemic should serve as a call for action. two in systemic inequities. we r

equity futures are lower. the story out of europe, chancellor merkel proposing to shut bars and restaurants for up to a month. emmanuel macron speaks later this morning -- this evening. he's exploring reportedly a one-month lockdown. joining us now is maria tadeo in brussels. this is accelerating quickly. us through what is being proposed, considered, and decided? maria: it is moving very fast and you could argue it is a reaction to the number yesterday in terms of cases and deaths, which were high in france. when you look at emmanuel macron speaking at 8:00 p.m., there has been speculation as to what measures we could see tonight. these are measures that are being speculated. i want to stress it is not official and we will have to idea,or tonight, but the the french government would be inclined to go for a four-we clocked down that would start friday to detain spread. to go for thated option, a complete shift, a real u-turn on what we heard. it was all about tracing, but that is changing. according to reports

equities, that is a different call.e taking it back to the expected fiscal spending which would be a boost for overall stimulus, but then you have the likelihood of an increase in taxes. they say it would be neutral for stocks. 30 trades across sectors if you see this blue sweep. a recordat index track high tuesday when we saw the volatility in markets coming through in the s&p 500. matt: thank you very much, juliette saly in singapore with your morning call. let's get to the bloomberg first word news. struggling with a resurgence of the coronavirus with france and spain recording record daily increases. national politicians are leaning on local authorities, fearing the impact of wider measures. patients inf intensive care in france has tripled. areas forced into local lockdowns, no firm date set for rolling out the package, and it depends on any changes to the rule. about 17 million people are in areas of stricter virus restrictions. nancy pelosi has signaled openness to an airline relief bill after the president stopp

why are german equities or the german equity index doing so much better year to date?rexit differences? covid difference? think brexit is waiting but also the pound plays a role. it has had a bit of a bounce back. differencet makes a and it plays on the ftse. most of these companies are exporters. anna: it is often about the fx. when we see the london market go its own way, we look at the pound. we are seeing a bit of pound strength this morning. what about your thoughts on bond markets? about inflation, some worry it is coming all others say they cannot find it right now. what are your thoughts on inflation? >> i think that is right. in the short-term, central bankers are not optimistic. they talk about inflation above 2%. of wishfuls is a bit thinking for higher inflation. we don't see any signs of that yet. but in the longer term, we are reaching the logical bottom for bond yields and we are seeing this probably for inflation also. i think these are cyclical drivers. i think we are coming to understand that we do not completely understand this. and i think we are go

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with equities lower in europe, once again the equity market breaking down by about .6% in paris on thewe unwind some morning losses, down to her about .1% there. 500 looking flat, the s&p picking up a little bit. we events 2.2%. they are asking what assets will move most on election morning. that conversation coming up next. this is bloomberg. ♪ jonathan: 52 minutes in the session, equities back a little bit. we are buying some of the negativity in the early part of the session, almost dead flat. the cac 40 off by .6%. time, -- we get consumer confidence at 2:00 p.m. deep into earnings season, looking for numbers out from eli lilly and pfizer later on. , our macroow, laura strategist. walk us through the day. laura: i think what markets are looking for when we wake up next wednesday is whether we will actually see a clear winner. whether we know who will actually be the next resident of the united states. i think markets have shifted, positioning away from contested election risks. can more of that blue wave inflation trade takeover. if that is the case on wednesday, it is likely to be

that will be providing a racial equity plan aligned with the racial equity framework that the officeof racial equity developed for the city. so last year the city passed a law establishing an agency called office of racial equity under the human rights commission, and they developed the framework under which there are multiple phases to develop a city-wide plan in response to racial equity. the first component of that framework focuses almost entirely on internal city and agency hr issues, and they have promulgated a template and a plan, an action plan that every single agency has to develop and submit by december 31, 2020. so we each are developing our racial equity action plans and would be submitting our agency-wide action plan that we're beginning to develop in december 31, 2020, like every other agency. once we have submitted all of our plans, all of the enterprises and bureaus when they have those plans ready, they will be returning to you to present their plans and their priorities in early 2021. if we can go to the next component of the presentation, please. and then as you k

brookfield -- a 20% stake in equity.ed they news rejecting a proposed $3 billion takeover from a massachusetts mutual life. that is your bloomberg business flash. anna: laura wright in london. from get your morning call juliette saly standing by in singapore. it is all about what happens if there is no deal on brexit. the pound has been whittled in the asian session. and now things get more complicated. what is the latest? juliette: they do. the pound has been rising in asian trading around a bloomberg school that officials are close withviving talks officials. there has been some political posturing from boris johnson on friday regarding a weaker pound. the main issue will be the u.s. election. againsteeing hedging the pound. a lot of traders saying they will mute the brexit noise after four years of discussion until the contentious u.s. election is over. will be asaying there no deal brexit and you could see a 5% decline in pound across the board. we are also hearing from a strategist that things we are moving towards

equity strategist.not know if you heard the conversation, but it to evolve's to all of these politics and what it means to the equity markets. what does it mean to the equity markets in march or may of next year? gina: what the equity market will focus on postelection are the prospects for fiscal policy to continue expanding and the opposite of that fiscal policy via tax reform and increased tax rates. you will have some give and take depending on how large fiscal policy package is in a postelection environment. you probably see some of them were cyclically oriented groups in the equity market do well, but then you have to think about the timing of how to pay for that and how to pay for the extensive policy action we have had over the last year so. that is where we get into a sticking point. do we pay for it with immediate tax increases? we see capital gains rates go higher, do we see corporate rates go higher and how faster they go higher, or is it more of a delay to pay where corporate can adjust and

we are still over 45 minutes away from the start of cash equity trading. a mixed picture in terms of futures right as ftse futures fall, cac and dax futures just barely treading water. deutsche bank could consider a merger or acquisition as early as next year. this profitability and share price recovered. told me then sewing bank remains laser focused on implementing its turnaround plan. we see an increasing domestic deals, not yet cross-border. things like capital market and banking unions, not with the way it should be. and yes, covid for sure accelerated certain developments. scale is an issue. integrate to fully two or three years ago. we are well underway. that is happening in other countries, too. it is domestic so far. cross-border i would say -- matt: every time i talked to a bank ceo they tell me they are not ready at the european union level. whenever i talk to eu leaders they say, you're free to do cross-border deals. which shoe has to drop first? >> both are right. we are free to do cross-border deals, but if the regulatory headwind and certain

director european equities strategist, jp morgan. the other big news, brexit looks at it could go no deal. to massage hisas previous statements to continue negotiations. with this triumvirate of bad news, doesn't make sense that sellers -- that investors are selling stocks today? grace: our view is that we are in the midst of a recovery. markets will move higher over the next 12 months. we think the u.s. and chinese equities could make new highs over that 12 month period. but we will see periods of volatility and market consolidation through that. this is what you were alluding to, the shape of the covid virus resurgence. we would be using the volatility and consolidation to add cyclical exposures to supplement areas of structural growth. we have been long-term advocates including digital transformation by the technology sector. our conviction has not waned, but as a result of structural changes that are taking place in the post-pandemic world, it is oure news areas we have highest conviction equity ideas. in terms of what we are loo

equity futures fading off of session highs just a little bit.iscal talks, we have been turning the volume up and down on the same song for the last three months, and i am not sure what progress we have made. in the bond market, yields come in two points to 0.76%. in euro-dollar, we reclaim a $1.18 handle. bond levels, record lows, italy, spain. the covid cases in spain and france, the restrictions getting a little bit tricky on the continent. tom: we just saw that come across to bloomberg, on the government of spain acting against the government of madrid. these are the socialist leaderships of the nation going after the conservative leadership of madrid, saying we are going to shut things down. i would bring it over, before we get to the optimism on the equity markets, to what we heard in the last hour. deutsche bank with a roughly -3.5% down for four quarters, and up for the next four quarters, so a flat u.s. economy for eight quarters. he made clear stimulus was needed. jonathan: let's get to the optimism of the moment with ben laidler, tower

we are still seeing major equity indexes -- well, actually all european equity indexes boast green arrowst to bloomberg first word news, your top stories from the bloomberg terminal. for that, we go to laura wright. laura: stimulus talks are back on. the white house has reversed its stance with donald trump now wanting a comprehensive deal after nancy pelosi pushed back on the deal for individual measures for different economy. on maximum alert as a daily coronavirus cases topped 18,000 for a second straight day. close andasinos will restaurant space stricter controls. italy and spain have reported the most daily cases since april. the u.s. has sanctioned 18 iranian banks in a move to shut down the nation's economy to pressure the nation into entering a new deal to constrain its nuclear ambition. critics say iran already faces so many sanctions any more will not make much difference. 13 men have been charged in a plot to overthrow the government of michigan and kidnapping governor. there alleged plan was to overthrow the government the governorcharge as a traitor. hours a day on air and a

on euro-stoxx 50, down .1% european equities.sis points on the german und.year b annmarie: only 53 minutes into today suspect session. later, christine lagarde, we hear from her, the president of the ecb. also watching earnings from big apple, amazon. they got a brutal beating yesterday on capitol hill. jonathan: it was tough for them on capitol hill, tougher them in the equity market as well. pile inf the yesterday's session. onittle bit later, a focus the ecb president. joining us is richard jones. rich, great to catch up with you, sir. the ecb later today -- what is the focus for you? so many people don't expect christine lagarde to do anything? yet the pressure is still on. when are they looking for? think base case, the ecb is not going to do anything today. i think they will hold off until december, and i think they will do it for a couple of reasons. any ecb action today might look panicky, and i think it could potentially affect the markets. the markets are not expecting anything today, so i think they will welcome the au

equity futures choppy.nce a little more than -- chinesellar-yuan currency the strongest since summer 2018. that is the story in the fx market. the story in the commodity market is the copper price, highest since june 2018. a big china factor, i know the supply disruption, big china factor. demand normalizing. here is the move and treasuries. lower, yields higher, up three basis points on the u.s. 10 year. a low bit earlier this morning we had a guest on the program who tried to pump up the beige book coming out later. michael mckee joins us, our economics and policy correspondent. lisa: who was that? [laughter] jonathan: i have no idea. should we get excited about the beige book? michael: not at this point. the beige book helps the fed set up for its next meeting. the next meeting comes two days after election day. given we may not know who has been elected the fed is not expected to do anything at that point. there are concerns the economy is slowing down. a lot will depend on what happens with or without

equity markets don't seem to mind, shooting higher. alix: i feel like we get headline after headline that could move the markets, whether it is harsher rhetoric over china, over iran, and nothing seems to move the needle. it is the recovery reflation trade again. oil getting a nice pop. the curve had been much steeper, and we are kind of just treading water here. still 62 basis points on the twos-tens. the relief rally still in equities. the question is why. the vice presidential debate took a much more moderate tone then last week's presidential debate. it did still feature some sharp exchanges. sen. harris: the american people have witnessed what is the greatest failure of any presidential administration in the history of our country. vp pence: quite frankly, when i look at their plan that talks about advancing testing, creating new ppe, developing a vaccine, it looks a little bit like plagiarism. one, joeis: on day biden will repeal that tax bill, and what he will do with the money is invest it in the american people. vp pence: we'v

european equities are bid today. the u.s. bond market is closed, but the equity markets are open. we are up by 1.2%. earnings season getting up tomorrow with j.p. morgan, but stimulus talks are not going anywhere. the german ten-year yield, yields are going lower. we are also seeing some pressure caught in periphery. we are getting awful close to a has 100 spread that basis points on it, and that is certainly something we are watching very carefully. we note the comments from mr. lane over the weekend. the other thing we are noting as well is what is happening with chinese currency. the pboc over the weekend basically putting two way risk back into that currency pair. the question is, will that be marketto stabilize this and keep the pboc happy, or is further action ultimately going to be required? kailey: joining us now is mark mccormick, td securities global head of fx strategy. let's talk about the u.k. first. more restrictions to stop the spread of the virus there. the market doesn't really seem to blink at any of these new additional restrictions. why? mark: it is an importan

equity futures positive about 0.1%. i know equities got a lift monday, but let's face it, for anyone not buried in stock land. it is about the bond market, tom keene. 0.70% is your yield on the 10 year. tom: i can't do it. jonathan: any commentary on crude? 4gl or handle. -- $40 handle. you like that? a touch of positioning around foreign-exchange. do you like that? tom: i don't know. jonathan: we could do this all day. from london and new york, this is bloomberg. ritika: with the first word news, i'm ritika gupta. president trump and his allies look to capitalize on his release from the hospital. that is painting his return to the white house as a metaphor for his strength a month before the election. meanwhile, the president is pointing to his own experience to employer americans not to fear the coronavirus. a new cnn poll shows joe biden's lead over president trump has expanded to 57% of likely voters. 41% back the president. the pole was conducted entirely after last tuesday's debate and mostly after the president's

[laughter] jonathan: equities down on the s&p 500.ng up next, megan greene harvard kennedy school, senior fellow. this is bloomberg. ♪ ♪ ♪ jonathan: wednesday morning worldwide, a classic risk off set up. that's the price action. it looks a little something like this. well, lisa, it might be on a daily basis. [laughter] -4.1%. keep an eye on the banks today. down in europe, down 7% on euro banks. this week alone, we are off by 6.7%. euro weaker, yen stronger, dollar stronger. it is just that risk aversion really getting behind a dollar bid. euro-dollar down to $1.1745. the u.s. 10 year, 76 basis points. going into the ecb news conference tomorrow with christine lagarde, it is what is happening to italy, or rather what isn't happening to the italian debt market. yes, btp's are softer. italian bonds are lower. yields are higher by almost five basis points. but eight or nine months ago, i think you would have seen a much more vicious move off the back of what is happening in europe this morning. tom: as we look at the data right now this

equity futures obsession highs. session highs.bit later we talk about poverty, the economic mess in the state of the global economy with david malpass, world bank president. we will do that at about 9:10 eastern on bloomberg tv. tom: very interesting issue to see how those october meetings go. very virtual to say the least. we are monitoring that very carefully. , 219q futures up 1.9% points. right now on what has not moved, alison williams of bloomberg intelligence. she and her team do spectacular work on the banks and the financials. we start tomorrow. they are so far behind. what will earnings season do give you clarity and outlook where people can buy the banks? alison: i think the main question from an earning standpoint revolves around credit, and unfortunately we are not going to get much more clarity there. ofdo have a lingering issue paused buybacks and dividend limitations, and unfortunately we are not going to get an issue except to know the regulators continue to have these caps and the second round of stress test. unf

you have seen volatility into equities. the question we've explored week after week is what little is happening in the treasury market. i want to put together your world in fixed income with the equity side of the is this you have taken on. what do you lean into for that protection your end? greg: we always advocate for the client need for a balance portfolio. 10 year treasuries at 70 basis points and expected to stay well anchored, given the fact there are no signs of inflation right now or expected to develop over the course of the next couple of years. you have a federal reserve keeping interest rates at zero. we do not expect significant repricing to happen. whenever you see a significant downward move, when we look at the months where there has been bought about performance in equity, bonds provide that equity to a portfolio. although you might not get returns given where we are in rates but still provides balance for investors to have protection in their portfolios they can use to hopefully rebalance that equity we st

we think it's definitely a long equities, like higher equity indexes whoever is elected. in the short term they are clearly weighing on sentiment. guy: stick around, we have got much more to discuss. some headlines just crossing over the bloomberg at the moment. this relates to sanctions that could potentially come out of the eu related to the novichok poisoning of a lexington--alexey navalny. european partners suggesting sanctions targeting first the individuals, sanctioning's targeting entities responsible. see exactly what the details are, but there is a real balancing act at the moment. some within europe taking a more aggressive line. it will be interesting to see ultimately how it comes out. brexit is next. that's coming up. this is bloomberg. ♪ >> house speaker nancy pelosi signaled to democrats -- that democrats are willing to pass a standalone airline relief bill. she spoke with stephen mnuchin a day after president trump ended negotiations on a big stimulus package. last week house republicans blocked a democratic proposal to provide more than 28 billion dollars