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

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

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

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

lagarde is forthright, straight to the point.t does she need to do to frighten the pants off an fx trader today? more loans, the hint of deeper rate cuts to come, hint of more q. week? qe?ore q. week -- more what would make them shudder and run? centricthat would be qe to me. at the moment, it is not very credible. it's much more focused on the economic recovery. that would be potentially helpful. be a forceful statement from lagarde that she's unhappy with the rise in the euro which is normally never something she would say but that's probably what it would take. the exchange rate is too strong. we are going to do more qe to counter it. annmarie: certainly, i want to hear what she does, and the fact that the fed kind of went ahead of them. does she follow the fed? are they on the back foot? wouter sturkenboom, thank you so much for that. he's from northern trust asset management. we will bring you, as i have been saying, the latest on today's ecb meeting with full coverage of the policy decision at 12:45 p.m. london time, follow

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 yo

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

christine lagarde.here 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 inco

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

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

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

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

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

annette, what did you make of madam lagarde's speech >> i think you have summarized it perfectly i can only add some details when it comes to her contemplation whether this crisis might be more disinflationary or not. hear the jury is out because obviously the first take from that crisis is that we are seeing a serious dis inflationary trend if you look through that, that's what i'm hearing from the ecb. they are not convinced whether the nondis inflationary affects can be seen now. there will be shifts in economic structure and perhaps changes in the way our companies are producing and procuring their components which mean the prices could actually rise. that's one el vent also, her general comments that monetary policy needs to be better explained to the general public that is her main goal and one of the reasons she got the job. before draghi, there was a general connection with the general public it is difficult to explain it but i think what her aim is, to outline the measures there to be deployed or explain it more often, why they do what. most likely that speech was also the gra

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

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

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

what lagarde said about the euro, not too worried, she seemed.oining us now is janet mui, investment director at brewin dolphin. good morning to you. i want to start with what is going on with the tech rebound we are seeing. i was looking at the bullinger, and you can see the nasdaq unable to get rid of that -- breakout of the midrange. is this a signal of more erosion or will stocks start to trade sideways? i think it is because the rally has gone too fast and too much. it has been concentrated in just a few megacaps, where there has been increasing retail interest and not just in buying stocks but buying derivatives of while, which skewed market momentum. it was drivenat by a lot of momentum and as a momentum fades, there will be more of a selloff and volatility, which we think will .ersist for a while we got a bit more negative news weing of the virus front, have no progress on the stimulus -- for the is a big market in order for the rally to keep going. i think it is just the environment where stocks are having a recess at the moment. think t

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

we heard madame lagarde say risks are to the downside.ome came away from the news conference saying she painted a rosier picture than they thought. stephanie: certainly the formal language out of this meeting was exactly the same as at the last meeting, pointing to the fact risks were on the downside. coming into it there were another burke -- there were a number of people in the markets, considering the data has not been so great, you are seeing the data leveling off and even starting to go down, the momentum weakening in european countries. we were wondering whether she would sound even more downbeat. as you suggest, the overall tone of her press conference was ,pbeat and we have heard bloomberg has heard that some members of the council had wanted to be even more upbeat in their language and had been overruled. david: are they seeing something in the numbers? the numbers came up largely. they are not cheery economic numbers, but whether it is gdp growth or inflation they have come up somewhat since the last estimate. stephanie: there w

madam lagarde saying part of her wish is to see process on the banking union. >> i do think this is an important area what the covid crisis does is increase the uncertainty about the state of the banking system. especially in the country's most -- with the deposit insurance, this is more difficult. southern european banks. italian banks, spanish banks may not be solid these concerns are now stronger. it will probably be more difficult to make progress with the banking union which is a pity because the banking union is needed. we shouldn't be limited. that is a difficult subject and it would be important to make recovery the importance would be a big obstacle >> we look to the future many believe the reduction of globalization. looking at the german policies where many are reliable. how do you see this shaking out? what would this mean for the german economy >> there is a danger that this would reduce globalization and there are forces saying we should produce more at home it would be a lot of damage not just to the economy, the german economy as a whole the risks should mean more diver

weak inflation will be a part of that meeting, looking to hear how madam lagarde looks to frame. oil and gas down, basic resources and telecoms. looking at the u.s. futures after the rebound on wall street nasdaq with the best day since may boosted by microsoft the dow looks to drop about 100 points and the nasdaq to pull back about 90 basis points speaking to cnbc, druckenmiller issued a stark warning over market volatility. >> right now, we are in a ragingmania. we have commentators on your network encouraging companies to do stock splits and going up 30 and 40%. i think the merging of the fed and treasury, which is effectively what is happening during covid sets a precedent we have never seen since the fed got their independence it is creating a raging rainia and has not spilled over to main street >> the ecb council will hold a policy meeting amid concerns a stronger euro could pull into a deeper territory madam lagarde expected to keep rates steady instead getting out to annette with a special guest to set us up for today's meeting. >> thank you it is a bit of a tricky situa

hard not it's very only for madame lagarde but the ecb economist who has finally said actually the eurooes 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 have much bearing on what the ecb does going forward? >> it does, and there little they can do about the current status and even less they can do about brexit. again, the big difference including related to this is fiscal policy, the outlook that ofcal integration, recovery almost one trillion euros altogether of the recovery will finally have an impact and i do expect again -- joe: a little breaking news out of the fed that says it is considering extending constraints on bank dividends and buybacks. earlier in the crisis with the stress test, they did impose rules on the way the banks can give back money to shareholders in terms of making sure the banks had fortified balance sheets and so forth so it will an

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

verythink lagarde walked a fine tight rope. stronger dollar would be negative for a lot of people. we have seen the dollar and stocks are inversely correlated over the last few months. if we see the dollar researching, that could -- could --, that there is really nothing they could do at this stage but sit back and watch. i think some of the markets were surprised that she did not offer stronger verbal intervention. i think there were real risks from starting to talk down the euro at this point. matt: so do we see the euro than 31, but do we 1.18 or thegetting to 1.20, possibility of 1.30. >> if we do get to those -- 1.30? stage,e do get to that the ecb will start to talk it down. if it goes much further, they will start really addressing the problem. axe: interesting double emerging between christine lagarde and philip lane. philip lane is certainly giving us something to read and digest this morning. thank you very much. just a quick line on another red headline breaking across the bluebird. tesla plans to start shipping chin

lagarde can pull out of her hat thursday if she intends to do anything.ong euro is definitely a disinflationary force. you have no growth there and no inflation there. the only way to generate some inflation is a weaker euro. and a lot of these policies, the outcome is a weaker euro, so i think you might have to see a shift from some of the other central banks to keep up with what the fed has already done. francine: do you think it will lead -- where is euro-dollar at the end of the year? is our target. it is a little bit below that right now. the u.s. election i suppose is the wildcard. if you have a contested election, you can see a weak dollar for the remainder of this year. there is definitely a possibility of that. i don't know if it is a probability of that, but i don't see either side giving ground if there is any contest to the election. the policies from the united states have been more aggressive than they have been in europe so far. francine: where do you see, patrick -- you have been buying specific talks or industries. where are we? september

presidentand we have lagarde talking to parliament later on, and part of the ecb's watchers conference. european stocks are rallying the most in two weeks. i think it is bank shares that are leading these gains. oil dropping below $40 a barrel. if you look at what is happening in banks, it is hsbc surging 10% in london after the biggest shareholder raised its stake in the bet that the embattled lender will return to paying dividend. it could be a game changer going in the future. let's get to top stories, and lots talk about the u.s.. the new york times reports president trump paid $750 in u.s. income taxes in 2016 at 2017 and has hundreds of millions of debt that could come do over the next few years. the president has dismissed the report. pres. trump: total fake news. actually, a paid tax, and you will see that as soon as my tax returns -- they underwrote it for a long time. the irs does not treat me well. i will tell you that i look forward to releasing that. i look forward to releasing many things. .eople will be really shocked the new york times been doing this. fake story after

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

at the moment the valuation those might be lagardes and offer stops but really for that to change, we need an economic environment that is supportive for these names that the profit can recover. >> what was the catalyst we saw for the selloff yesterday. >> a lot of the investors are pointing to the options market there have been big positions built. that meant there was always going to be the sort of dynamic hedging where some stocks would move to be exaggerated to some extent i think, looking behind that, what we have is the situation where we have very good fundamentals good to long term, we push to those levels and extremely skub rant any change that could change quickly and have a very big impact that's what happened we were overbought looking at the technical market indicators. any sort of snap back was always going to be quite large when it comes. >> you and i and people have been looking at the markets for years from you and tesla has the price. how you can feel about the value stocks down 43%. down over 19%. i want to put aside the madness of the oscillation and concentrate on

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

willdo you think lagarde do next week in terms of rhetoric on euro strength? 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 host this morning, thank you very much. coming up, daimler unveils an -electric vehicle as they try to catch up with tesla. we hear from the ceo. thi

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 lockdowns. it is the balance effective switching on and switching off and on an entire continent. whilst important is that a lot of the conversation is about the top figures, which did recover quite strongly in the early months after the lockdowns, we had quite a great divergence between the sectors. those most affected by social distancing are lagging behind but others have recovered quite quickly. that is giving optimism to policymakers we are in a locked down recovery that is underway. having said that, we have seen a great loss of momentum in the recovery in the last eight weeks. that has coincided with a spike in covid numbers. it is too early to say but it is clear for a region that is quite export dependent, developments in global trade are having i

lagarde, the disinflation and deflation is chronic.ou 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 bad type of inflation, or does that mean monetary policy and fiscal stimulus needs to be paste? nouirel: if you have negative ,upply shorts coming from -- reassuring and protectionism, and other potential growth and increase costs -- [indiscernible] we end up with stagflation eventually. it is not a pro

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

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

this goes back to what the ecb did yesterday and the fact that president lagarde somewhat spurred a rally in the euro after she delivered relatively mild comments on the surge. but the chief economist said -- set a tougher tone this morning, possibly signaling more monetary stimulus is needed. let's talk about all this, the ecb and the euro, with themos fiotakis. great to have you on the program. when you look at the ecb, was the ecb a little too relaxed about strengthening in euro? themos: good morning, and good to be here. good to see you again. they repeated the usual mantra about how the ecb used the euro and input with inflation, but the main question around that is and remains what are you going to do about that? of toolst have a lot to deal with it. they kind of really take interest rates much lower from here, and they cannot do anything about the fact that the dollar is weak at this stage and will probably remain weak as long as drivers remain in place. does it actually hurt their inflation forecasting echo themos: it hurts probably for the next year, but i would note that the eur

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

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

from lagarde to georgie how are they doing in this new world?christine lagarde took over after a from her predecessor and shored up the imf and then left to become the european central bank head. , youoman who replaced her do not have to be a woman, but there were two in a row, but the woman who replaced her is not that well-known. she is unlikely to be the president of the world bank when you think about it. she is from bulgaria. normally you get someone from western europe, france or germany heading up the imf and somebody from the u.s. heads up the world bank. she was so impressive that she was the chief executive of the world bank, and then she became the head of the imf. during the pandemic they had to extend credit to countries that really needed money. for those that did not pay attention, the imf job is to shore up the balance sheets of countries in financial trouble. -- they also had to put a moratorium on loans being repaid by a number of countries because some of the countries cannot pay them back. when we look at the imf, it is the p

christine lagarde yesterday seemed to take a back seat. they are worried about the stronger currency. is the europe too strong right now to help receipt covery? -- is the euro too strong right now to help the recovery? >> we always monitor an array of economic indicators. one of those is where we are from an exchange rate point of view. we are meeting here today. it was not a topic of discussion. it's a long-standing view of the eurogroup. it is so important to us an exchange rate reflects the economic fundamentals of the euro area. it was not a subject of discussion today. and this is a matter the president has commented on. >> what is your assessment of where we are going into the autumn? the economic data has improved over the summer. do you expect that to continue? what degree of certainty going into that period? >> we are, of course, in a atmosphere at the moment in which there is much uncertainty. the figures released by the european union a number of weeks ago did point to a decline in income. national income across that period of n

larger in population than the u.s., but still we are seeing 252 deaths on wednesday -- by christinell lagarde today saying we can't get a grip on the recovery in terms of the economy until we get a grip on the virus. >> to talk more about the connection between the virus and ae economy, let's bring in founder and ceo. thanks for joining us. it has been tricky over the last several months to suss out a relationship between the fluctuations in the virus and the economy. we had this big sudden stop in the economy in the first wave. but it is more ambiguous -- when you look in europe and the u.s. right now, is there some clear link between the rate of change or speed of the recovery of the economy? >> initially when we had the first wave, we had a huge spike in cases, in deaths. that was followed by lockdown and a dramatic economic impact. as we second wave, or even look into the third wave in some countries, that relationship is getting more complex. the relationship between the cases and policy response has changed. dramaticearned maybe a full-blown lockdown is not needed. spikes.ugh we have ca

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

is anything that lagarde says likely to trigger an fx war?a tough job because over the last couple of weeks, we have seen her colleagues have questioned the strength of the euro. 120..s. dollar hit we heard a couple people from the ecb pushing against your strength. we sell it -- against euro strength. lagarde will be conscious of the fact she does not want to trigger a global effects were. if she was going to talk devilishly about the euro, that could get the attention of the u.s. treasury, possibly japan as well. avoidy even try to discussing the euro out right just because she does not want to excite the foreign exchange market. it is going to be pretty hard for her to keep the euro down on a day when people's eyes will be .ery closely i some of my colleagues have been saying, there is a slight upward bias toward the euro when lagarde speaks later today. juliette: mark cranfield in singapore. thank you for your insights. let's head to new york and get the first word news with karina mitchell. karina: tiktok's parent bytedance as reported t

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

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

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.

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