chelsea why is the london stock exchange selling the. next. there's a couple different strategic rationales behind this deal for one the london stock exchange is in the midst of another big deal where they are buying a really big u.s. data provider for about 27000000000 dollars and as a condition of that deal they have to divest. a lot of stock exchange they would have been too big and they would have had too big of a concentration in. financial markets so they did have to get rid of the milan stock exchange for that other deal to go through but for euro next and for europe this also is highly attractive deal for them euro next has been really consolidating in europe they say that with this deal they will handle about 25 percent of all equity trading within europe's about also of course can allow them for things like cost cuts and consolidation in the workforce so it financially makes sense for them and for italy they really wanted to get the milan stock exchange back into european hands this is the exchange where a lot of italian government de

milan stock exchange so this will clear the way for the london stock exchange to go ahead with this other deal but this is also strategically quite an important for your own necks and for europe as a whole this will allow euro next to be really the biggest player and european stocks trading they'll have about 25 percent of the stock trading market here which will allow them to do things like cut down costs and improve efficiency of for the platform and it also fulfills that italy's wish to get this. exchange back into the european hands so normally certainly the announcement moves the markets one of those would do investors there in front for the make of the deal. for frankfurt it's actually a bit of a disappointment the board which runs the frankfurt stock exchange had also been in the bidding for the milan stock exchange so a bit of a blow to not have come out on top for frankfurt in particular but this does just comment that met a general trend towards consolidation of stock exchanges in europe we've seen many many companies merging or doing acquisitions and this comes as europe is rea

next is set to buy the milan stock exchange for 4300000000 euros your next as the acquisitional create the largest pan-european market maker to deal also benefits the london stock exchange which hopes shedding the italian unit will ease its takeover of financial data firm or offensive the you have expressed skepticism over that deal. so the l.s.e. in your next appear to be the winners of that deal is there a loser or financial correspondent frank for chelsea delaney thanks so. perhaps the biggest loser after days is that it's your birthday which operates the frankfurt stock exchange share they were also in the running to buy the board. they clearly lost that and it comes after they've lost out on several big acquisitions in the past couple of years there's really a big push towards consolidation piano stock exchange operators right now they're facing an increasing amount of competition from the u.s. from asia from high traders that are really starting to dominate the market and with this acquisition with this deal next will really become the clear leader in the european stock trading business. right chelsea do indeed there in frankfurt and staying in euro

consolidation phase started years ago with indices of the london stock exchange now set to sail for 4.5on euros. euronext is not the highest bidder. it is the most politically expedient choice. this is something we need to look at closely. there is not much left to buy after this. tom: interesting to see this. somewhat of a for sale. competeg lp constructively each day. david westin just killing it today. speaker nancy pelosi to wander by. deborah dingell of michigan, my favorite of the congresswomen of congress, on her battleground state. futures up 12. this is bloomberg. ♪ >> on day one, joe biden will repeal that tax bill. what he will do with the money is invested in the american people? >> on day one, joe biden is going to raise your taxes. it is remarkable. right after a time when we are going through a time, almost 22 million jobs died, we have added back 11.6 million jobs because we had a president who cut taxes and rolled back regulation. industry, youuto voted against it. let's set the record straight. >> american people deserve to know, senator harris was one of only 10 membe

the deal could come as early as next week, a commendation of amd -- the london stock exchange group haseed to lx -- the teliana to price more than $5.1 billion. it needs e.u. approval for is $27 million purchase of rsa itded by adding boorse teliana. francine: this is what the markets are doing. the focus on the extra stimulus that could come from the u.s., but they are also looking at a number of infections of covid-19 rising in europe. european bonds rising, italy's 10 year yield falling to a record low in treasury -- and treasuries gaining, the dollar retreating. tom: an important interview with the leadership of armenia. the turkish lira, 7.90 three today. it has been an ugly week for turkish lira. please stay with us. on bloomberg markets today, the close. esther minard of guggenheim. -- mr. minard of guggenheim. good morning. ♪ president trump: i think i'm going to do a rally on saturday night, if we have enough time to put it together. but we want to do a rally with florida on saturday night read my one sylvania. -- might do one in pennsylvania. it's incredible was going on, i fe

euro democratic ne democraticnext has slipped some of this down to the price tag paid, the london stock exchangecomparison moving higher in the session. if you think about what is playing out in terms of regulatory issues, when you talk about the sale of an exk45iexch some of these come to the fore eu eu eu eu euronext saying that central functions will remain in milan but they are hoping that the deal will boost its earnings saying that it expects that synergy, and that is a big one with deals of this side, 60 million euros, so we are seeing some positive euronext but clearly this has been the motivation >> karen, thank you very much. >>> all right. let's talk more now about these markets. the major averages up three of the last four sessions and one group of stocks making a rather surprise fourth quarter push but your next guest is calling for caution as we and a half gate throu navigate through the rest of the month and the year matt millie is joining us. good to have you back on there was a story the other day that one small cap etf, the iwm, took in something like a couple of billion or a b

euro buying the balsa italian business off the london stock exchange.sh land, this is an interesting story. we are focused on what is happening in terms of the covid story in your. british land reinstating dividends. getting enough cash flow in terms of rent for a bid to justify that. the market responding quite positively. the standout story of the week in terms of the stoxx 600 is definitely rolls-royce. lisa: let's find out more about why it has gained nearly 100% in the past week alone. joining us on the phone from london is bloomberg transport reporter charlotte ryan. what is the story? charlotte: this has been a meteor rise for rolls-royce, almost 100% in a week. obviously the share price has ,een severely hit before hand which may be partly explains why we have had such a jump. a number of theories on this one to be honest. one is that we have had news earlier in the week that the industry is planning to give further support to plans for a more -- a new generation of many nuclear reactors which rolls-royce is involved in, and that gives the compa

was jonathan's which sort of became the center of what was increasingly understood as the london stock exchange. nothing left of that now. but if you go to this like this horrible little post blitz you know, bland building. no windows. his little blue oval plaques, this where jonathan was. speech of nothing quite there. thomas: the thing about the bubble it self, the key thing was honey designed the deal. this was the first time, the thing to remember about it is yes, this is a bubble and yes there was deception previous people voted to deceive others. and sometimes the same people were actually calling others while they were fooling themselves. this was the first time that this had happen so the deal would set up with a really fatal flaw in the middle of it. nobody ever said how much, what the value of what the piece of debt was. .. .. this is the how the modern bond market first starts to form and people in financial will tell you, the stock, may where the headlines come but theband, may where the action. i. much, much larger and the fate of nations hacks on the been market in a way the stock

of those was jonathan's which became the center of what was increasingly understood as the london stock exchange. there's nothing left of that now. if you go to exchange alley still exists but if you walk down there's just this horrible post blitz bland building with no doors and no windows and one of those blue oval plaques that says this is where jonathan was. >> but the thing about the bubble itself, the key thing was how youdesign the deal . and this is the first time, the thing to remember about this is this was a bubble, yes there was deception, yes people deceived others and were self deceived. sometimes the same people were actually conning others while they were fooling themselves but this was the first time any of this had happened. so the deal was set upwith a fatal flaw in the middle of it . nobody ever said how much, what the value of a piece of debt was in terms of these shares. the company was able to say we will give you three chairs for that piece of debt today but tomorrow 80 we will give you two and we get to keep the difference. we get to keep some of the shares that we would

next is set to buy the milan stock exchange for 4300000000 euros and your next as the acquisitional create the largest pan european market maker to deal also benefits the london stock exchange which hopes shedding the italian unit will ease its takeover of financial data firm or offensive the you have expressed skepticism over that deal. so the l.s.e. in your next appear to be the winners of that deal is there a loser or financial correspondent frankfurt chelsea delaney think so. perhaps the biggest loser after today's deal is that it's your birthday which operates the frankfurt stock exchange share they were also in the running to buy the book that they've clearly lost that and it comes after they've lost out on several big acquisitions in the past couple of years there's really a big push towards consolidation among european stock exchange operators right now they're facing an increasing amount of competition from the u.s. from asia from high traders that are really starting to dominate the market and with this acquisition with this deal you're inexorable really become the clear leader in the european stock trading business. right chelsea delaney there in f

is to buy the milan stock exchange for $4300000000.00 euros a year and next as the acquisition will create the largest pen european market maker and the deal also benefits the london stock exchange which hopes shedding the italian unit will ease its takeover of financial data firm referred to the e.u. has expressed skepticism over that deal. so the next appear to be the winners from the milan deal is there a loser our financial correspondent in frankfurt chelsea de laney thinks so. perhaps the biggest loser after today's deal is the director birthday which operates the frankfurt stock exchange share they were also in the running to buy the board. they clearly lost and it comes after they have lost out on several big acquisitions in the past couple of years there's really a big push towards consolidation. stock exchange operators right now they're facing an increasing amount of competition from the u.s. from asia from high speed traders that are really starting to dominate the market and with this acquisition with this deal next will really become the clear leader in the european stock trading business. or in chelsea delaney there in frankfurt corona virus infectio

london stock exchange inches closer to getting eu approval deal.s $27 billion matt: take a look at europeanity index futures. they have been pretty mixed so far this session. you are still seeing ftse futures up .1%, .2%. you are not getting a lot of direction from the futures picture, but the ftse mix price looks a little better than that. let's see if they open up higher this morning. take a look at the global macro column holds a risk asset class. you can see the far left-hand column has the equity indexes in it. the ftse does indeed open up .2%. and forthouncing back between gains and losses, though the covid situation obviously is relatively bad in spain. as a result, you can see more concern poured into that index this morning as the ftse continues to gain strength. cac 24 up after france reported relatively large numbers of coronavirus cases for itouple days in a row, and is actually holding up at that level. little changed this morning. european markets may be mixed to higher. that as new infections in spain and italy hit a six-month high. the pandemic threatening to spiral out of c

rolet, nonexecutive chairman for capital markets at sure capital and the former ceo of the london stock exchangeyou think about these technical issues? we were talking to investors yesterday who were getting frustrated and wondering why whye aren't redundancies, these systems keep having issues and are worried about a bigger problem to come. are you? elise: well, it is a good question. most exchanges operate on the basis of i.t. architecture that has been around for many years. first of all, they operate private networks. the banks, the pokers -- brokers that tie-in to exchanges themselves have external connectivity with clients. that adds to a lot of the complexity of operating these platforms. of course, something specific to the exchange industry, consolidation, creates an additional layer of integration of complexity, bringing these platforms built with different infrastructure -- it is very complex. failures can come from hardware. they can come from software issues, quality control, but as you said and as clients said, there are redundancies. and don't always work sometimes you get the tri

the london stock exchange agreed to sell milan's borsa to eurone euronext so i don't know if that one is nearly as -- there is no great joke in that one i don't know if -- we've been joking will the lsd for a long time >> so worth twice as much. if you had told me that, i would have said no way or almost worth as much as ibm wouldn't have believed that. but the world keeps changing, you know, in spite of -- >> this was a big sought after deal there were a lot of people going after this and who were interested looking at the bids prelts closeclos pretty closely so decent premium on this. >> and it is a pandemic stock, amd, too, i guess, with everybody staying athome, demand for chips for everything that we do at home >> and also a china story. they are being opportunistic and taking advantage of the idea that xilinx has been hurt. >> amd's improved fortune over the last year, up 90% due to demand for that. >> sure. and you can't get computers, you know, they are backlogged still for all the schools and kids and families ordering these things so not going away anytime soon that demand.

we are seeing some examples from london, tokyo, even the thailand stock exchange.tions are pretty breathtaking -- some of the factors you just cited, liquidity, these are fundamentals that are not likely to go away. the search for yield, the availability of central bank driven the quiddity. do you expect this level of activity and interest to continue into next year? paul? there is always some reservation. have been seeing very rapid advances in some of the prices. especially in the top sectors, technology and health care. theave been seeing some of investors confidence is a little bit fragile. they have actually been building proper position. i would not be surprised to see some of these investors deciding to sell when they see the first sign of any market uneasiness. at the going rate, everything is good. u.s. presidential election happening in less than a month's time, there is still going to be some market volatility and uncertainty. after theat mean that u.s. election when all of these ipos are out the door that we could be seeing some cooling in this space? y

and he's watching the biden campaign and keeping an eye on the new york stock exchange is kristen salumi that he is in london for us dominic cain is in the german capital and our white house correspondent is at the white house in washington d.c. but 1st rob reynolds begins our coverage the news came in a late night tweet from the white house president donald trump wrote tonight the 1st lady and i tested positive for covert 19 we will begin our quarantine and recovery process immediately we will get through this together it is not known how despite elaborate precautions and constant testing of white house officials the white house press corps and others in contact with trump the president contracted the virus but earlier one of trump's top aides hope hicks was confirmed to have tested positive hicks accompanied the president to the debate in cleveland ohio on tuesday trump phoned in to a fox television program earlier on thursday and talked about hicks having been exposed it's a tough kind of a situation it's a terrible thing so i just want to protest and we'll see what happens i mean who knows the white hous

the london stock in change group has agreed to sell -- two euronext and italian lenders. the prices more than $5.1 billion. the extent -- the exchanger e.u. approval for approval on purchasing another company. they will have a quarter of all equity trading in europe. there could be a $30 billion takeover in the chipmaking industry. inanced micro devices is talks to purchase the company which could come together as early as next week. the combination could break the fornglehold on the market data center computer components. l'oreal is closing doors as part of its restructuring on u.s. luxury operations. 400 jobs will be cut. the french cosmetics firm plans to shift to e-commerce. people have been spending less on pricey perfumes and makeup since the pandemic. tesla's new factory will not just be building an electric truck. the company also wants to build factories -- batteries on the site. there will be a vehicle assembly factory, the flagship factory is in california. and your business flash. francine: thank you. this is a picture for what the markets are looking at. we will see what happens when washington wakes up on stimulus. and

stock exchange. that's your bloomberg business flash. here inura wright londonutes until the start of the european equity session. over half of view of small and medium-sized businesses face bankruptcy within a year. that is according to a mckinsey survey, which also vows that one in five companies in italy and france expect to file for insolvency. joining us is our economy reporter who has been looking at these reports. ais is interesting because lot of guests to working capital markets have big businesses that have access to capital markets. and given the amount of support we have seen for central banks, we don't necessarily to worry about them as an asset class, because a majority can get access to debt when they need it. but it is the small and medium-size businesses that look at it and could struggle. what does this report say? over half of europe's small and medium-sized businesses say they could face bankruptcy in the next year if revenues don't pick up. that is significant because sme's account for more than two thirds of the workforce in the half of the

on the financial markets in the 3 main stock exchanges in europe that would be the dax in frankfurt here in germany the cac in paris and the footsie 100 in london all of them when they opened share values dropped somewhere in the region of around one percent although in the past half an hour or so they have improved that they're still dan but say around half of one percent not as bad as when they opened in so far as other reaction is concerned we can anticipate that when the e.u. summit is taking place in brussels from where shawn the share the council president made his twitter post we can anticipate that when the summit breaks up when news conferences are held by the heads of government the heads of state the heads of the commission that they will be asked for a reaction about what has happened to the president and what effect it might have on relations between the u.s. and the european union remembering of course the strategic importance of the united states here in europe the continuing strategic importance of the united states here in europe. all right thanks so much dominic kane that. president trump joins a growing list of world leaders

london time, initial jobless claims will be coming out that sets up the report tomorrow. let's get back to one of our top stories, one of the biggest exchange halts in living memory. the tokyo stockut trading for the entire day. its operator that there was a hardware breakdown and gave no timeframe for when trading would resume. joining us to discuss is dani burger. what is the sentiment? a lot of colorful comments coming out of tokyo. be a lot ofseems to frustration about this event. in the beginning, there was deafening silence. now a lot of the traders are questioning just how active they could possibly be, saying that the hardware issue switched. how hard could it be? how could they not have this prepared? another person said it is a comedy show and making my eyes water. it exposes justo antiquated the technology is in tokyo pieced together by chewing gum and rubber bands. you could hear in that the sense of frustration. they will hold a press conference later this morning, but they will be holding at around 4:30 tokyo time. that is quite a while after the initial closure of the exchange. there are a lot of questions hanging in the air, when will this get fixed? what is layin