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tv   Bloomberg Markets European Close  Bloomberg  December 9, 2020 11:00am-12:00pm EST

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guy: from london, i'm guy johnson. alix steel is a new york. we are counting you down to the european close on "bloomberg markets." boris is going to brussels. the prime minister and the commission president are going to have dinner tonight. deal or no deal on the menu? poland and hungary said to be close to a deal that will see them remove their vetoes and unlock the eu's 2 trillion euro budget and rescue plan. significant u.k. regulators on the pfizerg vaccine for people with significant history of allergies. the u.s. is relying significant the on these mrna vaccines. stocks are bid. we are off our earlier highs, up by 0.4% in europe. the s&p dropping on the news coming out of d.c. we are lower after hitting an intraday record higher little earlier on. the cable rate is bid today, as people it is abated maybe boris will bring home a deal on the
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brexit front. however, there are mixed messages coming out of brussels. we will be there in just a moment with maria tadeo. euro-dollar not really reacting, not budging, really, on news of that potential deal with poland, hungary and germany on the eu budget. the market i think has largely already assumed that a deal would get done. to point outwant doordash, we are waiting for that to start trading on the new york stock exchange. we are looking at a bid ask spread of $145-one $50. we thought it was going to price in the mid-90's, and unreal move we are going to see which so we are very interested to see how it is going to wind up trading. when it does, we will bring all of that to you live. u.k. prime minister boris johnson heading into what could be the most important dinner of his life, sitting down with european commission president ursula von der leyen a brussels in about three hours. joining us with more from outside the european commission
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in brussels is bloomberg's maria tadeo. is it just going to be ursula von der leyen and boris johnson? are there teams going to be there? what do we learn and infer from that? maria: what we know is this will very much be a tete-a-tete with the head of the european commission and the prime minister. the negotiating teams will be represented, but there won't be any other european leader at the table. this is very much between the commission and the prime minister at this stage. there has been information coming up from the commissioner over the past hour that really hints that this is not going to be a make or break moment for the deal. we are not going to get a deal by the end of the dinner. that is not going to happen today. this is about injecting political momentum into the talks. we are being told a key here is the briefing that von der leyen will give to european leaders tomorrow when they come to brussels. if he is able to tell them the , but minister is serious
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until then, nothing will move. today, the dinner, if it doesn't go well, the europeans say they will focus on no deal preparations. let's talk about the timeline if this goes well, and the teams get back together and start negotiating. is a deal done by the end of the weekend? i would say it is unlikely at that point. i was just a briefing hour ago and put a question to one of the officials, where i said why are the european officials not engaging at this point? why is this not officially on the agenda? officially, european leaders are not supposed to talk about brexit on thursday or friday. his answer is that there is still a lot of technical work that needs to be done, and it is too early to bring in the leaders at this point, so i would say it is always difficult to get a time on when it comes to brexit, but this week does seem unlikely. guy: ok.
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that is interesting, and terms of trying to get things organized. thank you very much, indeed. bloomberg's maria tadeo in brussels for us. as the market awaits the outcome of this meeting, bloomberg has been speaking to business leaders about the potential impact of a no deal brexit. that anly hope agreement can be found because even with agreement, it is going to be very painful and difficult. that with a hard brexit, it is going to be really painful, especially for people losing their jobs. it is the last thing we need last night -- less than we need right now. >> those tariffs can be quite substantial on some food items. so those all most inevitably are going to lead to higher prices. is themost important market participants, banks, asset managers, all participants are well prepared for this event , and hence, i do not it is bait
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huge volatility around it. bait -- do not anticipate huge volatility around. guy: joining us now is arend kapteyn, ubs chief economist. the base case, is that the way to go? arend: we think so. i think we are all just waiting. if you are not in a room -- in the room, you don't really know what is happening or how close we are, but you have to thing a deal is going to be forthcoming. all of the focus is on things like fisheries and food and things like that, but if there is no deal, the u.k. will effectively lose most of its auto industry. some of the cost estimates we forgot about because we got preoccupied with covid. the cost of not having a deal is just way too large to not close that final gap between the two sides. the: how do you think
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unfair competition problem is going to play out? if each government is infusing their government was a lot of money to spend on stimulus, but then they have this clause where they are not allowed to support or subsidize certain businesses, how does that affect the recovery out of covid? arend: the u.k. has not been using a lot of support so they have not benefited as much from it and the european countries have. i think we are now going into a phase where that policy support the comes less important because with the vaccine, we expect a pretty solid private sector recovered. intoinly as we get later 2021, that will take over the recovery. so this year we were on life support. to some extent we still are. q4, every european country will be in contraction. but as we come out of that, those lockdowns, and go into 2021, that support becomes less important.
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what is still important is things like the extended unemployment benefits, the jobless schemes, and some level of income support because not -- but at this stage, it is no longer a thing about adding support. it is just letting the private sector take over the recovery, and then you can start to think about withdrawing it may be a year, a year and a half or so from now. guy: one of the economies in europe that has been hit the hardest izzy the u.k. it has it has a -- hardest is the u.k. it has a big hospitality sector. it is out front when it comes to the vaccine, significantly in front of the rest of europe. could the recovery we get, that kind of return to normality that could come earlier in the u.k., masked to some extent the effects of brexit? arend: absolutely. if there is a deal, first of all
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there's going to be some friction costs in that deal that are going to be immeasurably small relative to the volatility coming from covid. even if you have no deal, right now we have a baseline forecast that assumes a deal. we have about five point 8% growth in the u.k. next year. if there is no deal, we will take it down to something like 3.5%, 3.8%. the swings in gdp from this pandemic are much more important. i the same token, the speed of the private sector recovery, rolling out a vaccine and accelerating that may more than offset what you might get in terms of frictions for brexit, but sectorally, the sectors being affected by either pandemic or brexit are very different. so distributional he, it definitely matters. to your point, in terms of how quickly can you get the recovery going, it is layer upon layer of uncertainty. so even if we managed to be quick on rolling up the vaccine, if you look at what happened in china, china effectively has had the pandemic under control for
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4, 5, 6 months. it was only last month that cinema ticket sales were back at recovered levels. not only is there uncertainty about the logistics of getting the vaccine to people, even once you get the hospital and discount rate down, how many months do you actually need for people to confidently go back to their normal way of life? i think that is highly uncertainty. alix: cinema? god, i can the last time. more breaking news on doordash. ,e are now looking at a bit-ask $150-$155. we will bring everything to you the moment it starts trading. this is bloomberg. ♪
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alix: live from new york, i'm
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alix steel, with guy johnson in london. this is the european close on "bloomberg markets." poland and hungary now seemed to agree on a company is with germany, according to a senior government official in warsaw. joining us with the latest is bloomberg's richard bravo. he helps lead the team covering the eu government out of brussels. what is the significance? right now, eu ambassadors are meeting in brussels, going over this cumber mas agreement. if they all sign off on this agreement, which indications are there is a good chance this is going to happen, then we will be very close to this eu budget going ahead. budget the $2.2 trillion and stimulus package that the eu agreed on this past summer. a big deal, and all 27 number states are really waiting
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for this stimulus package to help their economies get back off the ground. whatwe will see exact a deal looks like and where compromise is being made. aren't -- us car still with us, arend kapteyn, ubs chief economist and global head of economic and strategy research. you have a release package that is going to be distributed around europe. gs attached to it are very limited. basically, you've just got to use it in a useful way which is very different to the church and applied to the eem back in the air is in crisis. in the euro zone crisis, we emerge stronger because of those .estrictions is this going to generate higher economic growth sustainably in
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order to justify the higher debt levels these are going to be carrying? arend: i think one of the features of the way money is going to be spent is it is much more infrastructure, environmental, digitalization focused than the stimulus and just the last couple of years. generally, i thing of the way that money, those type of issues as being productive, provided the money gets spent on that. return for't get in it is some structural reforms per se, because you don't have that strict conditionality as you mentioned. but i'm not overly concerned that that money is going to get wasted. for me, the issue is that it's just not really a lot of money if you spread it over so many years to move the needle on anything. so i think it is nice to have. if it starts getting rolled out next year, it would actually give you a little bit of net fiscal stimulus in europe which
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you generally don't have elsewhere. but i think those amounts as being relatively small and not very consequential, and on a timeframe that the market does not yet really care too much about. alix: to that point, when the news of this first broke however many months ago, the rhetoric was that it is important because it is a first step, and it could be more of a banking union as we move on after that. are those things either pushed off or off the table, considering what happened with poland and hungary during all of this? arend: i don't think so. i think the optionality is worth a lot. so what are the real economic effects of that money being spent, that is relatively small near-term. but having crossed the rubicon on effectively putting a place a mechanism for a transfer union, we see not just what we see now with poland and hungary, but also the frugal four, that there's a veto there that would
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make potential reuse of that mechanism quite difficult. i think the circumstances in which this was born are unique. a pandemic in which everyone was innocent i think made it easier to come to some kind of agreement. we will have to see what the stock looks like next time around to get everyone to agree to it again, but once you have done it once, it comes easier to do again. i think you see that in risk assets, and euro-dollar. it is the optionality rather than the near term. guy: portugal is now negative on its near term. spain is very close to being negative on its tenure. -- on its 10 year. does the ecb just have to carry on? we are going to hear from lagarde tomorrow. are these countries right to assume that their borrowing costs will always be the slow? arend: certainly for the next -- be this low? arend: certainly for the next
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four years, i think. they are trapped by their inflation forecast. they will roll out the 23 forecast tomorrow. we still think it is going to be something like 1.5%. you are still way short of your target, and the road forward guidance forces them to effectively keep accommodating, so we don't have their program finish until sometimes in late 2023 or 2024. on that time horizon, the debt service costs are going nowhere. you first need to close this inflation gap, and then you can start to think about the withdrawals. it is why the spreads are where they are. i think the net supply in europe in the next year, if we are right on what is going to happen tomorrow, is severely negative. it is something like -300 $20 billion. so there's very little reason for debt services to go up in the near term.
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alix: does that imply you expect them to announce an open-ended pepp, a whatever it takes pepp? once that is moved, the capital key problems will come back to hunt the bond market. still ae think it is time-limited extension to the end of next year, about $500 billion, and then we will get a new series of quarterly tltro's. we think it is something temporary, exceptional, which is why you can waive the rules. the lawyers on the ecb council are still very vocal on that. i think they have argued it to the courts, so you can't make that permanent. obviously you can push the envelope on how long you keep extending, but i think for most people, there was the sense that this was temporary. it just turned out that this pandemic is lasting longer than expected. so it is easy to justify into 2021. it gets more tricky to justify
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to any 22 once we get a vaccine, so it is a time-limited -- to 2022 once we get a vaccine, so it is a time-limited extension we think. alix: on doordash, you're $106/$155 -- at $160/$155. sonali basak has more. sonali: this is about to be a blockbuster ipo. i think back to when new or was going public. that did not go well. now we are in the middle of a pandemic, and this is just going gangbusters. some of the investors that started off very early are about to do very well. that includes sequoia and kleiner perkins, and of course, softbank, which has about a 25% stake here and got in in 2018. this is a very big win for softbank, as well as small street names.
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fidelity and t. rowe price, which got in a lot later, but again, big gains, up from this year's valuation that was just over $15 billion. alix: we have seen this jumping in five dollar increments, which everyone should be checking out. that is pretty large for the ipo's we have seen recently. sonali is sticking with us on set to get all of the action from bloomberg. thanks so much. this is bloomberg. ♪
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alix: this is the european close on "bloomberg markets." the uk's national health service says people with seeds advocate history of allergies -- with significant history of allergies should not get the pfizer/biontech vaccine. meanwhile, canada just authorize the use of that vaccine. joining us with more is emily
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ashton. the allergy thing that happened overnight, how unusual is that? emily: yesterday was the first day of the vaccine rollout in england, and the front page this morning was so positive. everyone was very excited about people having those first injections. but then midmorning, we got this news that there'd been to cases workers, health care professionals who had these allergic reactions, but are all right now. they've recovered. so that wasn't the best kind of news the day after the first day of the rollout. but what the national health service is saying is that this is a people with a history of ,ignificant allergic reaction not just mild allergies. guy: how significant does it have to be?
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the new advice from the nhs is that any person with a history of a significant allergic reaction to a vaccine, medicine or food should not get this vaccine, and these people who had the two cases, to put it into context, we know that thousands of people had this vaccine yesterday, so these were two cases. these were people who carried adrenaline with them, and according to the guidance, should not have been given the vaccine in the first place. it seems like this kind of error in them being given it. i think we need to put it into context and kind of reassure people that for the vast majority of people, this does not affect them. alix: what did we learn about the rollout? like you said, this should not have been given to them. what are the cases we still need to work out here that other countries can also learn from? emily: it is not clear exactly what went wrong here, whether
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they had an allergy, but obviously that's got to be part of the process, that the health care professionals are asking patients do you have this severe allergy, are you carrying an adrenaline pen. therefore, you should not be getting this point. that is why the guidance today is anyone with a history of serious allergic reaction should not be taking the vaccine, and that facilities should be available for all vaccines. it is assuring to know that these have been picked up fast. by the end of the day, the u.k. regulator was looking at this. things are being monitored well. i think we also have to put into context that we had over 60,000 deaths in the u.k. this year. the vast majority of these people have been very old. cases are rising in a lot of areas in england, and
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vaccinations are incredibly important to curb this virus. guy: we are going to leave it there. thank you very much for the update. $160/102 to five dollars on doordash -- $160/160 to five dollars. we are watching that closely. alix: i think $58 billion would be the latest they value the company at. i think the latest round of funding was $16 billion. guy: i think comparisons will be made with 1998, 1999. the european close is coming up next. this is bloomberg. ♪
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guy: almost 11:00 in new york. 165 170 the offer on doordash.
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will it happen we will get pricing? will it be our show or the next show? let show you what is happening with european stocks. they are fading into the close. still up .4%. as you can see, off session highs. 395, still getting close to the 400 line in the sand. a big deal the back end of last year. let's talk about the individual markets. dax,tse, the cac 40, the not necessarily in that order. the dax the upper former pugh aide the auto sector in particular -- the dax the upper former today. dax the up -- the outperformer. ftse 100 up. let's give you the broader as it. ecb tomorrow, pay attention.
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it is interesting the euro did not move much on the news we got out of poland and hungary we are getting close to a deal. cable rate, 1.3380. btp yields continuing to move. today we are continuing to yields moving lower, prices are moving higher. portugal is negative, spain is close to being negative. what is lagarde going to deliver tomorrow? in terms 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
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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. that inud of the fact those businesses where we made changes last year in fixed income but also the financing business where we said this is
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the strength of deutsche bank, when you look at the financing commands, it will be a global trend. deutsche bank is a powerhouse in financing. they have done everything to mitigate the additional headwinds from the interest rate environment. the corporate bank has charged negative interest rates to more than 70 billion of deposits. that is far more than we anticipated last year. that makes us confident the underlying growth, which we have seen in 2020, if we continue to do that in 2021 and 2022, we will achieve our revenue targets for both units. further on, the headwinds from the interest rate will soften in 2021 and 2022 and the following year. ceo talkinge bank's to bloomberg earlier on. for more on the outlook for european equities, sharon bell,
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goldman sachs equity strategist joining us now. we have a cyclical bias in the markets. the car stocks are rallying. there does seem to be a positive view on what is happening. the recovery will be on track. the vaccine is being rolled out. goingstion is, is europe to be sustainably able to deliver this? are we going to see the bounceback story next year allowing the stocks people are buying to carry on delivering? sharon: we are so used to months and years of defensive stocks doing well. it seems odd, the rally into valley -- value and cyclical space has been so furious you have to question whether it will fit. i think there'll be a nice economic recovery next year. the vaccine has already been rolled out in the u.k.. we expected to be rolled out across europe. we think by the end of the second quarter, you will have
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around 50% of western europe vaccinated. that will enable the end of the lockdown and a v-shaped recovery. the caution is savings ratio has gone up and there's a lot of pent-up demand. i think it can continue for a few more months even though it has been very fast and very vicious the last month. alix: the other implication of a better recovery globally if we get a vaccine is a stronger euro, rotation to value but at the u.s. dollar into euro. at one point does the stronger euro hurt your thesis? sharon: that is very fair. in some ways a stronger euro -- be careful, in the sense that a big marginal investment of european equities and european markets is a dollar-based investment, is the foreign investor. that is what europe relies on.
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the dollar-based investment has more interest in diversifying outside dollar assets because they're concerned about the dollar no longer being stronger currency. they want to diversify outside, and at the same time economic growth is reflected in europe, and that will make a nice recipe. in the last few months, there's been a positive correlation between equity market performance and the euro. having said all of that, i agree there is a limit to all of this. the euro will keep going up, -- i do nott could think that will be an issue until you get to 1.25 or above on the euro-dollar. also a little bit of profitability as well in the sense european companies have a lot of overseas earnings in that they make a lot of money and if you transmit that back to europe it will not be so strong. if you think through the
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expectation europe will see better growth next year, that equities in the currency can go up together, as we've seen recently. guy: you buy everything in europe? banks are perceived as being the high beta trade on european recovery. i am wondering whether that will be the case. we will hear from christine lagarde tomorrow. she will indicate we will see low rates for a long time. we may see some curve steepening but it will not be significant. how differentiated am i going to have to be as a result of fiscal policy and monetary policy and the way i select stocks? wason: in the last month, i saying how quick the rotation has been. he did not have to be super differentiated if you're just in the value areas of the market, whether that is financials or commodities. you mentioned autos. all of that has done extremely well. next year you can see low bit more differentiation.
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ado not think you will see rising rate environment for a long time. that is true in the u.s. and europe. central banks have been quite clear they will look through economic improvement to keep pace. think banksaid, i have some upside. rates, they rising will also see economic improvement, and their profitability generally. i think it is an environment as we go to next year even without rate rises that will help the value areas of the market. one area that does not meet rate rises is commodities. fiscal area, close to the global growth, not just european growth, sensitive to the euro rising. here,could do well from
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too. alix: not to throw a curveball, but doordash, we are waiting for that open on the new york stock exchange. 17175.ead is we are watching our screens jaw-dropping on the valuations. thathese unicorn companies are still working on making a profit, what happens to them in a recovery? do we sell those to buy value would you hold onto them and also by value -- and also buy value? sharon: it is tricky. has if you look at rotation into value, you have not necessarily seen growth companies seeing a huge correction. you have seen them tread water or maybe go up slightly in absolute terms. not underperform in that value
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cyclical rally. that is what i would expect. equity markets overall do well. the longer duration stocks, the unicorn struggling to make profits, staying on relatively high valuations, but still the switch and more value. i am comfortable with the idea you can have low rates for a long time, you're longer duration companies whether they be biotech companies, technology companies, or the new unicorn coming through, all of those long-duration assets and a low rate environment with relatively low economic growth in the more medium-term, they will still be favored over that horizon. guy: do i put sustainability companies in that same bucket? do i put industrial companies that make goods for the spend ability push europe is about to go through and that bucket? are they going to put on higher
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valuations? europe is about to spend a lot of money. we are getting closer to a deal on the recovery fund. it looks like next year could be the start of that. how do i price those kinds of stocks, how deep do i want to get into them? inron: there are names europe that trade unreasonably high multiples, renewable energy companies. maybe there is a manufacturer, maybe there's a producer of renewable energy trading 20 to 30 times pe. that would be very high for a european company. i do not think you are looking at the sky high multiples you often see in the u.s.. i think renewables companies can trade on a premium and will continue to trade on a substantial premium to the european equity market. i am not looking for the lofty valuations you might get on some of these tech ipos where multiples are up to 100 times or more. that is less likely. the type of growth we are
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talking about from the investment plan if you're into green energy, the type of growth we are talking about is the high single digits. it could grow. growth, nottype of on these incredible elevated triple digit high multiples. guy: we will leave it on that note as we continue to track what is happening with doordash. sharon bell of goldman sachs will stick with us. let's talk about where we are with the ftse. we are just dipping in the auction as we come through the close. i will show you the final numbers at the moment. the number we are all focusing on is what is happening with doordash. 170/175 the bid offer. those of the closing numbers in europe. ipo, theon that multiple ipos on wall street. this is bloomberg. ♪
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ritika: coming up, an exclusive interview with westmore, robinhood founder ceo. this is bloomberg. guy: i am guy johnson. this is "the european close." $175/$180.w this will be an important distinction. apparently there is a florida-based door manufacturer that has the ticker door and people are waiting to see if it gets a price spike as a result of people confusing the two tickets. door and --, you want to go with want toor and dash, you go with dash. eu leaders will be holding a summit tomorrow. bloomberg's maria tadeo spoke
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earlier with european commission executive vice president ahead of that summit. iria: i am optimistic -- >> am optimistic. we have been working very hard. the positions are becoming closer to the proposal we have made, and i think we can reach an agreement tomorrow. i think it is still possible. maria: including poland and hungary? >> including poland and hungary. it all hinges on the other discussion going on about the financial framework and the recovery package, but i am quite sure if we can find a conclusion ofthose issues, the issue the commission target for 2013 -- for 2030 will be within reach of a positive conclusion. maria: you are optimistic we could get a dual agreement on the budget and the targets? frans: there are two issues that
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are essential. we have to make sure we have the money to invest in our society so people do not lose their jobs and companies do not go bust. there is a risk if europe does not have a budget and we do not have money for the recovery that this could happen. that is our top priority. when we have the money to invest , we have to make sure we invested in a sustainable economy. for that we need a -55 target for 2030. the disco issues are interlinked. alix: that was frans timmermans, european commission executive vice president speaking to maria tadeo. sharon bell of goldman sachs is still with us. you like u.k. stocks? why? sharon: it seems like a brave call at the moment. there are a few reasons. beexpect a thin deal to agreed sometime before the end of the year between the u.k. and the eu. that is our expectation. reducell be helpful to
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his perfection when it comes to the u.k. we also like value companies including commodities and financials in the u.k. that have techge weight relative to where the equity index has very little representation. the sector exposure the u.k. has , the fact that is the u.k. economy will be quite choppy on the upside, we have an expectation of 7% gdp growth next year. that is above consensus. globally we expect -- it is above what we expect globally. the u.k. is digging itself out of a deeper hole. ,rowth has been incredibly weak but it is also because the u.k. is rolling out the vaccine quickly and it is a service-based economy. fewer restrictions. ftse 100 or ftse 250?
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sharon: it is a tricky one. probably has the least to from a brexit deal because it is global, international, and it is not focused on the u.k., or the u.k./europe trade. it has exposure to u.s. and china. if there is a deal done between the u.k. and the eu, that will most likely push up starlike. -- push up sterling. it is an index that makes millions of dollars, so when you translate that back to sterling it will be a bit damaging for the index. overall i feel a brexit deal will help. we have a 12 month target on the about 10% of the from here plus a nice dividend in the u.k. plus we think sterling will rise. overall return should be put to good on ftse 100.
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ftse 250 as well has the exposure to domestic growth. we quite like u.k. equity overall. alix: let's pretend we get a brexit deal and it is amazing. do you want to buy european stocks or u.k. stocks? sharon: u.k. stocks on the deal, if it is amazing, as you say. deal.tocks purely on the a specific basket of representation like the u.k. domestic company. i think it will not be a bad thing overall for europe, and i to 50 toect the europe news, but noteal as much as the u.k.. guy: we see but what -- we'll see what boris johnson brings back from brussels. sharon bell of goldman sachs,
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greatly appreciated. waiting for doordash. $180/$185. we're trying to figure out where we will go. the ipo priced at $102. 81% could be the percentage gain. bloomberg intelligence senior technology analyst joining us now. your reaction to what we are seeing in the market today? deep: what you're seeing is a shift in sentiment towards gig economy companies. i say that because for the longest time, cooper struggled with questions around its path to profitability. we saw lift go through its own struggles. i think what doordash has done it showed this business has proved to be an essential service at these times of pandemic, where customers are
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using more online grocery delivery, online food delivery, and i think investors are realizing the scale these companies have, there is a path to profitability. it is a shift in sentiment, we think covid has been a key factor in that and maybe the valuations are getting stretched given the company is just going public, but overall there is a big change in sentiment. alix: i was going to say, it could appear this could double from what it priced at two when it opens. that does not seem like an insane possibility. is it worth that much money at this point? how they make their money, is it profitable, will we be able to sustain moves into these names when they're in a recovery? mandeep: i think the way to think about it is to look at the top line growth. in the case of doordash, its top line grew over 200% at a revenue
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base of close to $1 billion. it will likely double the revenue to $4 billion next year. when a company is growing triple digits, i think investors realize how much runway there is when it comes to the online penetration in this market. the top line is key. ipoede of uber, once it the top line tank -- granted because of covid -- but the top line decelerated sharply. doordash we think is sustainable because the food delivery trend is still in the early stages. guy: i want to bring a bunch of stories together that we have been talking about. you have doordash tracking higher, 185/190 now. on the same day we are talking about stimulus for small businesses, relief for businesses in washington, d.c.
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i am wondering how i put those things together and whether there is greater regulatory risk coming down the pipe towards doordash. i also know this another story trending high, that is that you could see a three dollars surcharge being applied to deliveries. we are not talking about food deliveries, we are talking about goods deliveries. nevertheless, i wonder whether the regulatory environment will turn more difficult and washington will wake up to what is happening and they will want to protect those small businesses, those restaurants. greatp: you bring up a point. i think that is the biggest risk with the gig economy companies. the recent verdict was a favorable one for the gig economy companies. do your about restaurants struggling -- to your point about restaurants struggling, we -- they areh
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helping these restaurants generate demand. that is the value at of a company like doordash. they should be able to navigate the rigor tory risk. alix: always great to catch -- the regulatory risk. alix: always great to catch up with you. 185 -- 190 as we wait for it to open. coming up, an exclusive interview with jay clayton on "balance of power" with david westin on bloomberg television and radio. this is bloomberg. ♪ the usual gifts are just not going to cut it.
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worldwide, i am david westin. welcome to "balance of power," where the world of politics meets the world of business. we want to check it on the markets. joining us is abigail doolittle. most of us are watching this doordash, because it is extraordinary. they priced at $102, it has been going up about a dollar a minute. $190/$195. abigail: is amazing. there's so much demand it has gone from $102, that is above its initial range, or actually a second range, it just keeps going higher. they are eating up this demand. ipogger question is is the frenzy too far, too fast? the biggest food delivery business in the u.s., about 50% of the market is captured. once it does start trading will be bringing that to yo


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