the markets do not have a massive reaction to the ecb, which is what christine lagarde would have wanted. hitting lows during the early part of the press conference. the euro-dollar did pick up a little bit during the press conference, and this will be a source of concern. she mentioned it again and again during the press conference and it is clearly all the radar screen. 1.2131. the bond market is quiet. not much reaction. we will talk about that in a moment. the other fact is what is going on with brexit. the prep -- the pound is on the table, 1.3272. alix: we are while -- waiting for airbnb to start trading and we will take that to you. we will get back to the ecb and how it boosted its emergency bond but purchasing program for nine months. the president said that the envelope might not be used in full. pres. legarde: a favorable financing can be maintained with asset flows that do not exhaust the envelope over the net purchase horizon, the envelope need not be used in full. beally, the envelope can regulated to maintain favorable cancelng conditions to the negative pandemic shock. al

says ite lagarde doesn't have to be used in. [video clip] >> if the conditions can be maintained and do not exhaust the envelope over the net purchase horizon, the envelope need not be used in full. envelope can be recalibrated if required to maintain favorable financial conditions to counter the negative pandemic shock to the path of inflation. guy: this is about flexibility. we extended the program, that is significant. we are increasing the size of the program and we are going to manage it on a dynamic basis as we work our way through the process. interesting to see what is coming out of the ecb. christine lagarde is keeping everybody on board. joining us, here to discuss all of this. duration more important than size at this point for the ecb? >> i think they're trying to remove risk to keep a bonded deals compressed. they're playing with duration as well as size. i think it is worth pointing out the ecb is a huge player in the bond market. at the end of -- by the end of the year, the ecb should own 40% of the german bund ma

a lot of challenges ahead for christine lagarde. chris hare.rt with what actually happens today at the ecb. this has been so widely telegraphed. now people are talking about the fact that they may come out bigger and larger in terms of size and scope of what they can do. what is your base case? chris: that's right. her base case had been an expansion of the program by 250 billion euros. we've been struck by the extent to which market expectations have ramped up. 500 billion euros plus, as you mentioned. we are in a position where the ecb wants to do whatever it takes in order to prevent an adverse market reaction to its policy announcements, to prevent a tightening in market financial the ecb hasand then to deliver bag in terms of the numbers on q. week that it is going to announce later today. annmarie: they meet every six weeks. they will likely say, they will only use it if it is warranted. why deliver such a big number if you know you are not going to use it? and you know you can just add to it in six weeks? chris: we question the wisdom of

i take your point on lagarde and i understand lagarde's politics here. but your call has been extraordinary. you have been absolutely dead on on this. it is going to come down to nations, as it always does. withdo you anticipate germany and france, at 1.22, 1.24, 1.26? george: not much, to be honest. if you take a step back and look is,here purchasing parity it is at 1.25. historically europe has been in a range of 1.20 1.30 at the time. i think all that will happen over the next couple of years, an unwind of the excess dollar strength, the driver behind this dollar strength has been an unprecedented demand of uncertainty. if you think back to the left few years, we have had trade wars, pandemics, monetary tightening. and next year will be a very unusual year because it will be a very quiet year. worldically when the tightens down, the dollar tends to weaken. francine: i understand this is a dollar story, but the trajectory with the euro must change depending on whether we get a recovery fund or not. after all, it changes everything for europe. will a po

this is something of what madame lagarde said today at her's news conference about that question.sident lagarde: we do not target exchange rate, but clearly the exchange rate plays and exercisesole downward pressure on prices. will continue we to monitor it very carefully going forward. david: they may not target it, but it sounds like she has a target on it. how big of a concern is this in europe? the strengthening euro? nicholas: we have had a strong euro for a long time. argue have been able to it has always been stronger than it should. this hurts german exports. it does not hurt french companies to the same extent because the small ones are not export oriented and the big ones have subsidiaries around the world. the reality is people are saving a lot of the stimulus money. people are not consuming. there is no upward pressure on prices. there is no wage price inflation. the stronger euro is going to be a bubble to the ecb for some are in aause if we continued deflationary situation and if europe continues to , then one is on the horns of the dilemma. david: let's talk just fo

christine lagarde says she's hoping financing conditions are stable and that it is not necessary. necessary will it be? >> it goes back to the mario draghi thing of where we will do whatever we have to do. look back at where they were aroundey raised rates 2013. christine lagarde has said we will throw everything we can at this and do monetary stimulus and you've now got some evidence of fiscal stimulus coming with it. hopefully, you will see that in the united states and the u.k. onlymonetary authority can be so much and christine lagarde said it and jerome powell said it and people around the world have set it so this is good news in the sense that the authorities are acting but bad news we are seeing economy slowing because of the pandemic. they were talking about the problems in germany and when you see the problems of the pandemic, you see how it will impact the economy. you have to try to control that pandemic and doing that helps the economy. vonnie: we want to thank you for joining us today. be watching the airbnb ipo which is happening momentarily. we saw the indications

we are going to play you a clip of christine lagarde speaking at the meeting today.ybe we will not need to spend a dull if favorable financing conditions remain and she also talked about how the vaccine is going to enter into it. >> if favorable financing conditions can be maintained with asset purchase flows that do not exhaust the envelope over the net purchase horizon, the envelope need not be used in full. the envelope can be recalibrated if required to maintain favorable financing conditions to counter the negative pandemic shot toward the path of inflation. ecb's extension of their bond buying program according to bloomberg news and their conversations was a compromise. some people said we only need six months to extend this because they are more optimistic on the economy. the other side of the board said we need to keep this in place for a year. i think what bloomberg economics said was very important about this. does --d if the vaccine then, this may be the last extension of bond buying the ecb has to do. it also means they will not even spend the full amount

little has changed for lagarde.erman two-year, the portuguese 10-year, now the spanish 10-year -- they signal disinflation. this morning, a critical ecb meeting. it is not antietam of 1862, it is not the great galveston hurricane of 1900. it is the one-day pandemic death in america of 3000. good morning, everyone. this is "bloomberg surveillance ." tom keene in new york, francine lacqua in london. the news flow is extraordinary. we didn't mention one word in the last hour on this horrific pandemic. extraordinary in america. what do you see from london on the pandemic in europe?

the christine lagarde says the ecb will recalibrate its tools.lane calls banks after policy decisions renewing unease about its communication strategy. 6:30 in the city of london. we were supposed to focus on what we are seeing in the bond and thusespite -- spike in treasury yields, dollar weakness. joe biden talks to the new york times and we are potentially back into 2021 with worries about u.s.-china trade concerns given the fact he said he will not make any immediate moves on those 25% tariffs of chinese exports going to the united states. is putting his political stake in the ground in terms of not starting on easy street. iran warning we are not going to roll over. we may stop inspections america does not lift sanctions. you mentioned the bond market. our guests, state street, said he is not expect repricing. it was one of the biggest one-day moves in the bond market this year. state street think it is a run-up and it is very nearly done. my other guest this morning said expect the breakevens -- sorry, the curves to steepen. maybe the curve

what kind of string is christine lagarde, mr. bailey at the bank of england, and powell, what string are they pushing on right now? jonathan: let's be clear. they are all pushing on a string. they can't do much more than they already are doing. what happens if they don't do this? if they allow financial conditions to tighten? that is what they are worried about. they can't achieve more. they can only keep things as they are, which is what today's move was about. keeping things as they are. the additional change has got to come from the physical channel, channel,fis -- fiscal not policy making. tom: vix is nothing. euro barely moved. we will talk american equities right now. lisa, i want to go to you on pushing on a string. things priced to perfection. the spanish paper priced to perfection. portugal priced to perfection. the credit and high-yield yield markets completely priced to a bizarre perfection. lisa: let's draw a distinction. spain and portugal are not necessarily treated as credit the ecb is buying. when you look at cred

what is lagarde going to deliver tomorrow?rms of the breakdown of individual stocks, this is the sector breakdown. the car sector having a solid day. auto parts up 1.45%. sectors and negative territory. construction and technology, which is interesting. there might be a cyclical tilt to the market today. vw is not moving fury we are on tenterhooks -- vw is not moving at the moment. trading up one point 13. -- blaming margin push lower on the fact we are seeing china-u.s. tensions. that stopped down 11.5%. down 11.5.that stock deutsche's percent down 1.33%. alix: deutsche bank ceo spoke with bloomberg's german bureau chief and they spoke about the banks growth and performance. >> the momentum in october and november was satisfying to us. we have seen continuing good momentum. a year is over when 12 months are done. we have to go through the december and october time being unsatisfied with the performance. it is clear some of the outperformance we have seen has been covid related and has been market induced. there is no doubt. t

we heard from christine lagarde.ou are the excesses perceive or the behavioral excesses of chronic negative interest rates? is a get a gold? -- is it hitting old? -- is it getting old? paul: it was never great in the first place but what we have now is a old-fashioned tax. you could call it a wealth tax, a tax on savings. you have a tax in negative interest rates. this talk about how to be payback government that, you never payback government debt. you are talking about a situation where governments are going to be looking at things like negative interest rates as a wealth tax rather than as a stimulus policy. i think that is how we need to start framing this. financial repression is nothing new. the u.k. was doing this in 1945 and successfully as a method of reducing debt. not to the extreme of negative rates, but low rates. i think this is going to be around for some time to come, very low rates for low value. tom: there is this cosmic belief that somehow the rules this time are different in nominal and real wages

christine lagarde has already suggested an expansion of the bank's bond buying program was in the offing. we demonstrated that we were there to support the economy during the 1st wave of core enough iris we will be there for the 2nd wave which is underway and which by the way in europe is now beginning to to to slow down and to reduce in intensity because of the new containment measures that have been taken but which are indeed affecting the economy as we speak i mean clearly all the p.m.i. numbers and all the the latest developments that we are seeing are showing that the economy is still suffering or i got real felber myers president of the kill institute for the world economy and he joins me now mr felder market morning how much room does the e.c.b. have to really affect what's going on in terms of chronic recovery. interest rates a. space for monetary policies of course very restricted but by extending the it's been a convergence of purchasing program violates another 650000000000 euro so ramping it up to 2000 billions and he used to be can create a situation which allows governments

to 2022, 20 is up 23, according to christine lagarde it i would say expect the unexpected. what is the unexpected within this quiet at the zero bound? it will be out there. i would say, as we beat up on airbnb and doordash, their capitalization is a fiction. they put out very little equity, and there has been a frenzy for that very little equity. 10% ofn: doordash, shares sold, airbnb just 8%. we are talking about the unexpected. let's talk about the expected. secretary a's are telling abc the u.s. fda -- secretary azar telling abc the u.s. fda will grant vaccine emergency use authorization. from london and new york, good morning. this is bloomberg. ♪ >> this is bloomberg. the u.s. is one step closer to getting a coronavirus vaccine. say the vaccine's benefit outweigh the risks. meanwhile, a warning from reddish prime minister boris johnson. he says business and the public should prepare to leave the european single market without a trade deal. he says that u.k. will continue but -- an agreement, disney is predicting netflix style growth for its services. an onslaught of pr

christine lagarde has promised that, in the market is front running that carried in terms of some ofividual stocks, let me show you what is happening. switzerland, this is a sensitized our company. a move to new 3d technology which would not work. the stock reacted strongly. jeffrey's out with an interesting note about the u.k. leisure sector. we are getting to the point todaywe need to start -- the journey started for the u.k. with that vaccine. what i thought was interesting is you sought a steeper bounceback in certain sectors. you see the pub sector coming back, transport coming back, cinema coming back, but hotels will lag. a more downbeat approach to iht. that stock down nearly 4%. the other stock i want to mention is g4s. is now rumored to be coming through with an alternative offer. the problem is we do not know how much that is going to be. the stock got marked up a little bit, but the details will struggle to price that stock accurately. alix: let's dive into the markets. 's portfolio manager lianz.ie hans -- at al there is the idea of the value trait will shine. retail, fo

how close to japan, tokyo is christine lagarde? jonathan: in terms of the bond market and amount they are buying? everything coming out of the beiphery, net issuance, will bought by the ecp. -- ecb. net supply coming out of europe, most of it will get sucked up by the ecb. that is the market and what you have to deal with. that is part of the reason for subzero-year-olds in portugal and record low yields in italy. that is why people think it is a bond market. you will have to get used to it. here, and the duration will be important. isabel was talking about that with blackrock. the duration is of more interest. equityolds into the markets, futures down 30,000, and look at the ipo markets. i know you have your 8000 shares of doordash, did you get the 8000 shares of airbnb. jonathan: i wish i had gotten an allocation. you will love this quote. he said "we priced our stock where we did not take every last dollar off the table, but where we feel it is a true reflection of our fundamentals." lisa: basically they are sharing our shares d

do you think lagarde references it?he did last time in the opening statement, which was a bit of a surprise to everybody. bhanu: i thing it is possible they reference it. particularly when you look at the rate at which the eurozone is going, it is very likely that a stronger trade would have euro is having an impact. what i am not sure about is what can they do. if they say that as a result of inexpensive euro, we are going to extend ppp and keep it in place longer, that is going to -- that is going to mean that spreads are tight, so i am not sure but the ecb can do other than express disappointment. i'm not sure the ecb has the tools to cap the euro. alix: always good to catch up with you. thanks very much. this is bloomberg. ♪ ritika: it's time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. the ceo of citigroup has he's worried about his employees' long-term productivity while working at home. >> people talk about the productivity that comes working remotely. ,e

lagarde alluded to that the other day.onathan: is it the difference between a catch-up trade and something more durable, more sustainable? many different faces to cyclicality. everyone is in the same bucket. the bucket just says cyclicals on it, and through the next year or so, you start to get some dispersion. lisa: i am picturing literal buckets, and one of them says cyclical. jonathan: that's how it works, isn't it? lisa: i will say, i think it is interesting what the regulators are going to do with dividend payments and some of those types of regulations that were put on the banks in response to the pandemic. we got overnight the european regulators coming out and giving more specifics about reinstating some of these dividend payments. it wasn't as generous as people thought. this may be one of the biggest issues to determining how much value there is next year. jonathan: a very timely conversation coming up on this program. we will catch up with jeremy ibc of aof c fascinating fx market. the euro just off the high. to

will those dynamics lead to great instability if christine lagarde cannot be successful?e: that is right. france started this crisis with a higher level of debt to gdp. germany had more leeway to expand its policy. in that sense, that is true. when you look at the scale of the decline in gdp, in germany, relative to many other european we did not see the bigger fall in economic output. when you are the president of the ecb trying to think about whether to support the european --nomy, the european economy there are many different economies in europe and they are all doing different things. most of the bigger economies -- relative to 2019 q4 gdp to each other. germany, france, and italy showed very different declines in gdp yet they have all bounced back to within a whisker of each other. the big difference is spain of the u.k., both of which are still very sluggish, 9% or 10% below where they were. when you are a central bank, especially one dealing with 70 diverse economies across the euro area -- with so many diverse economies across the euro area, it is a challenge. jon

christine lagarde's press conference 45 minutes later. this is bloomberg. ♪ ♪ matt: welcome back to bloomberg markets. we are about 43 minutes away from the start of cash equity trading across europe and in the u.k. as well. here in germany today, the ecb is poised to deliver another blast of monetary stimulus. policymakers are expected to add 500 billion euros to their emergency bond buying program and extended until at least the end of 2021. the euro zone economy is in a fragile state after being hit by new virus lockdowns and a continued uncertainty over brexit doesn't help. we are joined by konstantin veit. let me start by asking what you expect today. a little bit more bond buying and bank loans? konstantin: we have been told by the ecb quite clearly that the blueprint for managing the pandemic will remain the same. the focus is on the pet program. less on interest rates. passing the ball onto fiscal policy. anna: good morning to you. how do you find making money in european bond markets at this point? i was reading an interesting .i

german chancellor angela merkel claimed the number one spot for the tenth year in a row with christine lagardein a row. kamala harris became the third debuting in the number three spot other notable female politicians made the cut, nancy pelosi, number 7, and stacey abrams earning the 100 spot. >>> getting ready to take a trip down to whoville tonight "how the grinch stole christmas" is getting musical treatment on nbcing and mark barger got a look behind the scenes behind this big production. >> i abhor christmas trees and i scorn every wreath. >> reporter: to get into the spirit of playing the grinch, matthew morrison did not have to look too far. >> 2020. there's a lot of people out there that feel particularly grinchy this year, so it was kind of easy to pull upon the collective global sorrow that is going on >> reporter: the pandemic has sidelined many actors including morrison for months on end so when the opportunity that did come along happened to be a musical about an iconic character, all the better. >> it was a challenge for me honestly i don't live in that kind of anger and darknes

christine lagarde came in second.e list for the first time in the number three. house speaker nancy pelosi dropped from third last year to seventh this year, and georgia voting rights activist stacey abrams earned the 100th spot on the list. >>> coming up first on "cbs this morning," we'll speak with rick gates, senior vice president of pharmacy at walgreens, about the company's plan to distribute a vaccine. ed it with an adjustable precision jet spray and an advanced pad system. and offers personalized cleaning suggestions unique to your home. braava jet m6 and the irobot home app. only from irobot. plus have high blood pressure. they may not be able to take just anything for pain. that's why doctors recommend tylenol®. it won't raise blood pressure the way that advil® aleve or motrin® sometimes can. >>> our top stores this morning. the fda will meet tomorrow to discuss whether to authorize pfizer's coronavirus vaccine for emergency use. it comes as more than 104,000 people in the u.s. are hospitalized with the virus

ecb boss christine lagarde warned that there are signs of recovery in europe — but support is still neededy in the third quarter was stronger than expected and the prospects for the roll—out of vaccines are encouraging. the pandemic continues to pose serious risks to public health and to the euro area and global economies. joining me now is chris beauchamp — chief market analyst at ig here in london. it looks like a resolution has been found, so what has the initial reaction been? broadly positive, nothing too much in the markets overnight but a good sign to see this important programme finally making progress in the european institutions and to see it on the same day as the ecb announces an increase to its own recovery efforts is really encouraging sign and contrast with the us where you still have this rancour over a similar package and you have the us bank pleading with the government to get moving and markets will be pleased that one key part of the global economy has coordinated fiscal and monetary stimulus to provide the best possible boost for the struggling economies. hopefully thi

matt: so this brings me back to scholz, and also, to some extent, lagarde.ment here do? what can the ecb do in order to try and cushion the blow? carsten: let's start with the ecb. we had the big december meeting, lagarde and the ecb made clear they will kind of flood the european economy. they will offer cheap liquidity, cheap loans to banks, lowered liquidity, at least until march 2022. this is the best i can do, unless you can get another speculation about eurozone crisis. but for the economy, i think that's more what the ecb can do. and you can definitely argue whether an extension of the vat reduction is the right way forward. yes, sure, you can argue about it. but there should not be a discussion that there's more fiscal stimulus needed. we discussed the u.s. bill on fiscal stimulus in the u.s. i think erupted well in spring and summer. it will also depend on government in europe to really decide on more stimulus in the first half of 2021. but don't forget, this european recovery fund will now finally start, will only pay out money in the second half o

christine lagarde said economists have to try to be virologists. is it true also of investors? facta: it is a daunting that it investors have been educated for this. what investors are struggling worlds.dealing with two on one hand, the world of today which is incredibly tough. even if you look at basic economic stats, you see an incredible recovery, but the recovery is slowing down. look at the november jobs report. lockdowns.tering 12 million americans were unable to pay basic rent, utilities, etc. then we have the promised world of 2021 and the promised land being a world with covid immunity where the economy can restart again on great rotation trade. which started on monday, november 9. the same thing with vaccine announcements after the biden win. that is the biggest thing investors are struggling with today. banks,akers, the central particularly the fed, and the common denominator is if the fed -- as a market participant, you have no choice but to own assets in order to participate in the market recovery. 2021 should be a constructive year for risk asset. for: we are stil

scouting central bankers around the world at the federal reserve the european central bank christine lagarde and the bank and believe the problem is latin quitted the problem is going to be lack of solvency knew give an insolvent institution more allor in news burns that it doesn't solve the underlying structural problems you've got so many triple b. lines so much sure will be debt that's out there that can never be repaid in a leads that they can never repay all that they have it's when interest rates are at historic lows basically they may make interest rates at 0 so they never paid back well eventually wants not lines like the biggest buyer of european bonds is the european central bank and what i've been saying for many years is we saw this happen in japan and we have learned absolutely nothing from the street last decade they have sealed monetary policy the japan i mean intense 0 growth 0 growth for the past 30 years and. and actually meet on market they own all the options a fixed income market doesn't trade there at all and that's exactly what we're doing here except it's not going to

christine lagarde says the 600 -- lisicki hundred billion dollars -- the comments are seen as relativelyained and helped to push the euro higher. nba superstar lebron james is time magazine's appellee of the year after helping the lakers to the title and being prominent in the fight for social justice and black lives matter. his fourth basketball championship after the longest season in history. he signed a two year $85 million contract with the lakers. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm turning a metal. this is bloomberg. -- i'm karina mitchell. bloomberg shery: shery: should the u.s. communications regulator of the fcc is adding more restrictions on chinese telecom communications companies. it is ordering carriers to remove huawei equipment and it commitment tos operate any america under review. we have seen the chairman really spearhead these efforts for a while. what is the latest? >> that is right. they took those actions against huawei in china mobile last year. this is ano

we are awaiting the latest out of kristin lagard's meeting this morning.will give you the details. ftse 100 up 31 and dax index in germany higherrer -- higher by 20 points right now. now some of the top stories that we are watching this morning, the trump campaign and 18 additional states will join texas challenging the election results in battleground states. the lawsuit filed before the supreme court arguing that 62 electoral college votes in georgia, michigan, pennsylvania and wisconsin should be invalidated because the states acted unconstitutionally when expanding mail-in voting, they have until 3:00 o'clock today to file response to supreme court. kim paxton will join me live at 8:00 a.m. hour to go through the lawsuit and take a lack -- look at the election. the u.s. reporting more than 3,000 deaths in a single day. health and human secretaries alex azar says they could start distributing the vaccine as early as next week pending approval of fda meeting today to discuss that. well, the united kingdom issuing a warning saying that two people have had

christine lagarde mentioned it, but they do not have the tools to halt currency appreciation. i do believe they have the tools to control the bond market. york.om keene in new i love the idea that you are a foreign-exchange trader at ubs years ago. the idea of using a bid -- losing a bit in three seconds is an educational experience. let's get education on price up, yield down. -- grid and seed for 2021 the great unseen for 20 21 is the opposite clearly of consensus. what will be the processes it force price up and yield down for the united kingdom and the united states? up, yield down, in actual government bonds, i think is going to be challenging. i think there is -- one thing a couple things that we have -- that we can almost know for certain, next year there is going to be a material economic recovery, given the positive scientific developments. i think the big challenge for central bankers is how you keep financial conditions loose as the economy recovers. there is going to be pressure for nominal yields to rise, and the intent, i believe come of the central bankers will

christine lagarde expected to increase and extend the ecb's bond buying program.ound under some pressure, down 0.3%. 13.36 right now. rish? and dow jones&p indices are complying with the trump administration executive order on chinese securities with alleged ties to the people's liberation army by making ineligible.ks let's get the latest from sting and angle. some reports, 21 companies are being blasted. -- black listed. >> that was from trump executive order in june and companies were added in august. the list of 21 different companies. a number of these executive orders by trump and sanctions coming down from the administration on china, they' ve had mixed results as far as their success in the courts. but here is a tangible result s&p, dow jonesn indices coming out with a statement saying they are going to comply with the executive order that came down on november 12 in the united states. that essentiallyy will forbid u.s. investment into chinese listed securities, fixed income and equities that have companies, chinese companies that are tied to chinese milita

is christine lagarde going to 1.26 euro?l with peter: the u.s. is in a very flux situation. a two-way risk when you look at currency. we have to see also what happens in the u.s.. part of the appreciation of the euro that you see today, i would argue this is the biggest part of the appreciation of the euro, reflects their fundamentals compared to the united states based on the fact that you have more risk-on attitudes. the flight to the dollar has been reduced globally. the ecb will repeat the verbal message of it is important to follow the currency. i don't think there's much you can do about this. tom: let's come back. is with us and much more to talk about about europe and the global outlook in 2021. that will be a theme with edward formerlyevercore isi with cj lawrence. what is he saying cj lawrence for? futures -13. this is bloomberg. stay with us. ♪ ritika: this is bloomberg surveillance. its is pulling back from vision of a fleet of self-driving taxis. they are selling its autonomous car division two aurora innovation and taking a stake in the startup. uber is scaling

christine lagarde later on, of course in that news conference.ee what it means for the structural euro and if leaders can agree on something in the eu recovery fund. this is bloomberg. ♪ s is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. let's get to bloomberg first word news with leigh-ann gerrans. leigh-ann: facebook is being sued by u.s. antitrust officials and a coalition of states who want to break up the company. they are accusing it of a legally crushing competition and want to unwind its purchases of instagram and whatsapp. the complaint is revisionist history. have liftedpoland their veto over the use of a landmark stimulus package. that is in exchange for a delay in the sanctioning process that could strip them of the funds. the two countries opposed tying sections cannot be triggered before the european court of justice has them -- has a say on the rules, and that could take them more than a year. china plans to sanction more u.s. officials and place new trav

lagarde got that question about climate and whether there's a debate at the ecb about climate.oined me this morning and said, they are stuck in the building, talking about climate at 6:00 a.m. in the morning. do you think climate is going to overshadow the summit today or will it go back to brexit? will i'm sure that they probably try to touch on brexit if they have time. i don't think it as as -- is as important to the other countries in the eu as it is to the u.k. they've got really important stuff to deal with, including climate which is saving the world. they have to save the european union. hungary, poland and the issue they've overcome. they have to get this money out to their own economies to try to recover from the pandemic induced recession. they've got issues. brexit is one that i think a lot of them have grown really tired of. annmarie: certainly have. matt miller is up with anna edwards next. they will take you through the start of european trading this morning. that does it for me and daybreak europe. let's take a quick look at where we traded in the futures market

europe, christine lagarde and the european union, there is what they will do in terms of the stimulus or not. then we have stimulus with talks on going. thisg us to talk all about is patrick armstrong. patrick, thank you for joining us. a million things going on. it is brexit, stimulus in the sanctions onxtra hong kong. the markets are nearing record highs. what will they look at for impetus? patrick: the thing that the markets are looking onto is that we will almost certain he a sharp recovery in 2021, so with the success of the vaccines and the number of vaccines showing high efficacy, you can put a base case of very strong economic growth in the second half of next year. economies reopening, getting past the big headwinds of lockdowns and partial lockdowns. that is the driver of the cyclical recovery story. you've also got fiscal stimulus. although things are looking good, they are not good yet. monetarymy still needs and fiscal stimulus. we have a situation in the united states of almost $1 trillion. all these things come together -- coming together create a bullish narrative, tha

grand scheme of things, and against the backdrop of both the stimulus package announced by christine lagarde and the overnight confirmation of the trillion euro recovery package, i think it is, you know, third in the list of importance, which is why -- and maria is spot on -- why you need to this morning pay such little attention to brexit, because you see the pound, bigger fish to fry. francine: but will have bigger fish actually be enough to sustain a recovery? even what we heard about the ecb, they are concerned about euro strength. they cannot really do much about it. and the recovery can take longer, you know, to take place without the u.k. is the question, because overall, even in the event of the ecb forecast, modeled most central banks on an orderly transition. they were still modeling 1.3% inflation, 1.4% inflation by with even with money, even a stimulus package, even with the announcements from the governing council, and yet is that likely the risk to the downside likely to increase as a result of a brexit deal? absolutely. but in the grand scheme of things, i think euro-focused i

does that get past to one funny five -- past christine lagarde and philip lane?o not want a stronger currency. they will do all they can to try to prevent euro appreciation. we think there is nothing the ecb could do to stop a stronger euro amid a weakening dollar. this comes down to how limited the monetary policy toolbox is for the ecb. to increase and extend. we expect an extension and operations. these types of measures at this point are really incremental easing. if you like sustaining current easing measures rather than doing more. the only scenario for the ecb where we expect them to have a strong impact on the currency is if they were to cut deposit rates by a lot. in the region of 50 basis points. this is highly unlikely. the ecb are not a meaningful impediment to euro-dollar appreciation. forarie: thank you so much that ahead of next week's meeting. us thisor joining thursday morning. coming up, it may have been a bumpy november for equity markets but active managers struggle to keep up. we talk returns, next. this is bloomberg. ♪ manus: this is bloombe

tomorrow the big one for christine lagarde and the governing's counsel -- and the governing council.s year andinto some of the challenges we see in a time of output gap, we spend a lot of time on politics this morning, a lot of time on the dynamics of brexit. how about the markets? we speak with mark mccormick of td global head of foreign-exchange -- of td, global head of foreign-exchange strategy. i want to bring it right over into the great litmus paper of the system which is your world, which is dollar dynamics. what does that due to to foreign-exchange in dollar dynamics? mark: iq. what it -- thank you. what it does is pushes the dollar down. the way this works is the way the world's repricing reflation. ciber yield curves, higher commodity prices, pick up and emerging markets, focused in asia. a lot of that is pushing the dollar down because what you are seeing is there is expectation that the global economy is going -- economy is going to reflate mixed year. one thing we have tried to articulate to clients is if you have a view on equities or the global yield curve, you also in

100 most powerfulwomen of 2020 angela merkel topped the list followed by ecb president christine lagardemala harris made her list debut as the highest ranking and most powerful female elected official in u.s. history debuting in the number three spot of course the election shuttling her right to the top of that list >> powerful list for sure. frances, thank you very much >>> still on deck, robinhood looks to join the growing list of high profile initial public offerings, details on the big bank the trading app has tapped to lead the big ipo. in a land not so far away, people are saving hundreds on the most reliable network with xfinity mobile. they can choose from the latest phones or bring their own. and choose the data option that's right for them. they even get nationwide 5g at no extra cost. and since they are on the carrier rated #1 in customer satisfation, they live happily ever after. again, again! xfinity mobile. your wireless. your rules. your way to stay closer together. click, call, or visit an xfinity store today. >>> we're following a developing story in the news for a push

christine lagarde was the first woman at the helm. she's unleashing another half trillion euros to keep the economy afloat in a global pandemic. then -- >> we are going to be vainating over the next few months significant numbers of people. >> scottish prime minister nicola sturgeon leads a new push for scottish independence. >> there are five in american food that are directly linked to the

alternatively, lagarde could have come across much more aggressive versus the euro as well.ou are right. certainly, the strong euro is contributing to these very weak inflation numbers, very low inflation expectations. anna: good morning to you. whoe got a guest on later sees it going to 1:30 at some point in 2021. we will talk about how far the euro goes. thinking about 2021, i know on the mliv blog, you have been thinking about forecasts. i'm guessing this has a lot to do with the underlying health crisis and the ability of governments to roll out vaccinations to fight it. >> yeah. you are exactly right. one of the big answers to that question we had was first of all, vaccine efficacy and global access. that was a key point people made. people also talked in a related way about global growth outcomes versus consensus. stimuluseen the policy , now we've seen the vaccine. will the vaccine deliver the growth outcomes that we are expecting? those were definitely two of the most important issues that were picked up for 2021. matt: what do you think about the brexit story here?

i know the ecb debates whether or not this should be its mandate, although christine lagarde is clearks, and even those who question the mandate have said they need to check whether they are unintentionally supporting companies that are environmentally harmful with policies. all centralthink banks can have a critical role to play and can be influential if they allocate money to where it should be. this speaks to one of the problems in the market, even from a private sector standpoint, which is the definition of green activities. in europe, the regulators have the framework to define what should constitute as green activity come out which serves as a guidance for investors or the central bank to allocate capital. but we have not seen that across the board. the flip side is, if we have this framework which defines green activities, there is limited disclosure by companies. companies could be in the right industry, but without disclosures around how much their revenue is derived from greening activities, it is hard for investors or central banks to allocate capital in a way that will go

european central bank expected to unveil its own expand stimulus package tomorrow when christine lagardectations out there that we are going to see stimulus in europe, do you see the global story improving do you think united states decoupled. >> i think stimulus spending right now is not right answer i think what you really need to do is make sure, everything is cleared away for economic growth to come back, i mean the stimulus spending has -- it was a huge amount of money i mean a little over three trillion dollars, 10,000 as there are per man woman child goes on debt if they do student alone forgiveness other stuff you are going to hamstring the economy going forward i don't think stimulus spending will stimulate the economy i think what should be done lifting up restrictions on economy letting people go back to work. once vaccines are in place that is the way to go, i hope that is what we do here. maria: independence and freedom, you are working on mortgage insurance product to help people who with come unemployed can't make mortgage payments, tell us about that. >> is a alan dershow

if the lagarde has been so exquisite about the ecb not only trying to revitalize inflation, which will, but also specifically mentioning that they are aiming to keep government borrowing costs under the control. they will do enough to keep rates under control, and further support recovery in the economy. i think where needed, they will do more and they will do so later this month. anna: valentijn, thank you so much, have a great weekend. valentijn van nieuwenhuijzen , thank you for joining us here on the european markets open. a few lines coming through from the e.u., the french minister saying that the risk of a no-deal brexit exists. i guess that is a statement of fact. some in the e.u. 27 say that this man, michel barnier, would not sign something that e.u. states would veto. we will talk more about the breakthrough or the breakdown in brexit talks, as we seem to be getting toward the end of this, safe to say. this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute

it is also something madame lagarde has spearheaded in the euro zone by bringing together the fiscalh helping toward the recovery fund alongside macron and merkel. we have seen alignment with fiscal and monetary policy. what does that mean for the debt and deficit? of course we will see an increase in the deficits and debt, but these are issues we can deal with in the medium-term. the cost of not dealing with economic crisis and leading to a deflationary spiral could be more expensive from a sociopolitical perspective, rather than dealing with imbalances today. anna: in western economies, or you worried about a deflationary spiral, or inflation coming back to haunt us? thanos: inflation, i believe we will move into an inflationary period, not in the next 6-9 months, but further from that, most definitely. the receding globalization of the multipolar world. that will increase costs. tensions will remain across the geopolitical areas, even between the u.s. and the eu. thirdly, i see an unprecedented level of stimulus, and very importantly, not directed toward important institutions. it