tv Bloomberg Daybreak Europe Bloomberg December 23, 2020 1:00am-2:00am EST
u.s. futures slip on the news. open for business. france resumes critical trade links with the united kingdom but travel depend on negative covid tests. brexit hangs in the balance, but michel barnier says both sides are ready to make a final push. very good morning to you. just past 6 a.m. in london. another day we are seeing a mixed picture when you look into the u.s. risk off in terms of the u.s. asia, up more than 5/10 of a percent. s&p 500 futures a little over. what we clawing back had earlier which was a lot lower. this comes overnight with the president of the u.s. putting up a statement, a video on twitter, talking about the fact he things more money should be added to the covid-19 relief bill. we have the pound trading north of 1.34. up nearly 3/10 of 1%.
part of it has to do with the fact trade is going to get again open with france. that trade resuming at midnight overnight. also the fact brexit talks seem to be in a final push. we will have to wait and see. we have heard this before. brent this morning trading under $50 a barrel. some softness when it comes to the oil prices of wti or brent, down 1.5%. a lot of it has to do with the worry of the strain in the u.k. otherointing to the fact parts of england may enter into tier four, that worry is going to be hitting the demand side. now, we begin this morning with the surprise video from the president overnight. president trump is demanding congress amend the bipartisan covid relief package he had been expected to sign. pres. trump: i am asking congress to amend this bill and increase the ridiculously low $600 to $2000, or $4000 for a couple.
i'm also asking congress to immediately get rid of the wasteful and unnecessary items. now toe: joining us provide clarity is bloomberg's john hardy in d.c. very good morning or late-night to you. what are the president's objections and amendments. he went through a slew of things. unclear is a little what his objections are except the amount of money being offered to people. measure, which went ryrough this long and ve torturous process to be passed by congress. $600 per person. the president wants $2000. the video set,
he complained about wasteful spending and asked for what he considered wasteful spending. and what sort of amendments he would want. this, of course, calls into question this agreement which was very fragile as it moves forward. annmarie: it was fragile and it took weeks, months actually. how has this message from the president gone down in capitol hill? john: so far, most of the reaction has been from democrats who surprisingly would like very -- or thehe paychecks checks, the stimulus checks, relief checks to be increased to $2000. speaker pelosi, nancy pelosi said she would like to see that. chuck schumer, the minority
leader, leader of the democrats in the senate, challenged mitch mcconnell who was very reluctant to move forward with the relief package and really wanted less and was finally approved to agree to this. but -- if the president -- go ahead. annmarie: i just want to know what is the next step? the president was supposed to sign this. it went through a lot of negotiations, really came down to the 11th hour. what is the next step this morning? john: he could. that would have severe repercussions from both parties, from the people who are counting on this, small businesses. and last, but maybe not least, the two senate races in georgia which would determine the control of the senate.
two republicane candidates, incumbents in a real bind. annmarie: john harney in d.c. thank you for staying up late with us. joining us now for more context is rupert thomas -- thompson, chief investment officer at kingswood. thank you for joining us. i want to get your initial thoughts on this surprise video we had from the president overnight. does it worry you the fact this legislation has not been signed yet? rupert: it was not the christmas news we were all hoping for. president trump is as unpredictable as ever. a really want to go down as president that boarded the fiscal stimulus package that the economy is crying out for? no. maybe it is a few days, couple weeks more delay. we could actually end up with a
slightly bigger package. i think this is a hiccup rather dent in the package getting through. annmarie: if the president does get his way and the stimulus checks get a big boost from $600 to what the president wants, which is $2000, what kind of impact will that have on the market? rupert: definitely positive. in terms of treasury yields, this pressure. maybe you could test 1%. equity markets, even if you go to 10 year treasury, this is not going to represent equities. and very much what these equity markets focus on, not only in the states but worldwide. any sort of measure short-term which will boost growth. annmarie: right. what kind of growth do you think in the united states the sectors
that will do the best and rounding out 2020 into 2021? do you by the full rotation? depends timetally horizon you are talking about. very short-term, it is pretty hard to call which way things are going to go because it is in the melting pot. these kind of points, you have to step back a bit. just put -- one way would be putting on your till and helmet -- tin helmet and dodge the shrapnel, the negative news, and focus on the prospect for a strong global and u.s. recovery. the way still on path, to think about playing it is this valley rotation. it does not mean that value stocks will outperform, but if you are looking at a strong cyclical recovery next year, and interest rates remain pretty
low, that is an attractive environment where you expect value stocks to do well, particularly where value stocks are very key. i think you have to play value six to 12 months. annmarie: going into 2021, john brought this up, the next big thing to watch is the runoff election which is in a few weeks. do you think this is going to have any major implications, depending on how big of a second potential or third stimulus package rather president-elect biden could get through? rupert: clearly, if the democrats do win the two senate seats, then the chances of a significantly bigger second stimulus package would go up significantly. in has to be said, there will be checks and balances in terms of how much will be able to get through. sure, it will move closer to what he wanted to implement in terms of $2 trillion, green
energy and the rest. it will still be a thin majority in the senate if they do get the two senate seats. i think there will be quite a lot of checks in terms of how much they will be able to get through. you can have more, but it will not be like if they have a clean sweep. 2020, a: we saw in record $2.5 trillion in borrowing. what do you make going into 2021 of the corporate america when you look at the debt market? rupert: the general view on the debt market is corporate bond yields are going to remain very well supported, because we are reducing -- we are heading into a period of strong global recovery. if you look at the level of growth, they are back down to pre-covid lows. is there any real reason to expect spreads the fall significant further? no, there is an.
what you are looking at it is very well supported, not because of the fed which will remain a backstop. the potential -- a few specific areas, maybe high yields. in a sense, you were looking at pretty low returns of corporate bonds. government bonds, negative returns. for equities, we were looking at potentially high single digit numbers over the coming years. very much, i think if you have any appetite for risk at all, you have significant exposure to equities rather than focusing on debt, whichever you are talking about. annmarie: rupert thompson stays with us this morning. let's get you up to speed on the other news with our first word news. the bank of england needs a laser focused on keeping inflation expectations and check after the pandemic. that is according to the chief economist, warning that if the central bank, it will push up bond yields adding to the u.k.'s
massive debt burden. he spoke to stephanie flanders. orvery near term, quarter two, as the vaccine rolls out, it is going to remain a bumpy ride. not as bumpy as earlier this year but bumpy nonetheless because we see virus cases on the rise. we see restrictions on the rise. and that cycle we see this year will persist near term. the u.k. isd looking at locking down more areas of england to counter a faster spreading variant of the coronavirus. other regions could face tier four restrictions, meaning nonessential shops have to close. the cdc is warning the new variant could already be in the united states. israel is heading for its fourth election in just two years. its governing coalition collapsed after seven months after failing to pass a budget. the new ballot is set to take place on march 23.
polls indicate a new challenger may be able to win enough support to unseat benjamin netanyahu who has been the prime minister for over a decade. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts. now coming up, france reopens its border with the united kingdom, ending a closure that crippled britain's busiest port. the details next. this is bloomberg. ♪ wanna lose weight and be healthier?
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annmarie: good morning. 6:15 a.m. in london. france this morning reopening its border with the u.k. after the nations reached an agreement. france cut off shipments from dover on sunday over concerns of a faster spreading variant of covid-19. travel will be limited and depend on getting a negative covid test result. joining us now is stuart wallace.
very good morning to you. how easy will this test system be you to implement? it is the chaos likely to continue now that the border is reopening? because there's a long line of trucks at the border. stuart: good morning. i think that is the point. at last count, there was something like 3000 lorries backed up. half pretty close to the port. that will take a lot of time to get through. in terms of the testing regime itself, that seems to be part of the reason why we have this sort of somewhat put prickly -- perplexing delay in getting a resolution. the french side wanted the more comprehensive test. the british side wanted the speedier test. i think in the end, they have gone with the speedier test. it remains to be seen how fast they can get through that, before tthe december 31 deadline is looming fast. annmarie: certainly. what kind of chaos does this
kind of show us what a no deal brexit could look like? is this what it would be? or could get even worse? stuart: [laughter] i'm hesitant to make productions because we haven't had a brexit deal so it is difficult. at the moment, the talks of centering around what looks like 60 million pounds worth of fish. the reality is if we don't get a deal in the next few days, that will be very hard to get that through the various parliaments. isn if we get a deal, there likely to be some problems, partly because of the backlog, but partly because they are leaving the deal to the last possible second. annmarie: on sunday, the chief scientific advisor for the government said more parts of england would have to face tier four restrictions. the sun is reporting this could happen as soon as today. boris johnson and his team mulling with whether or not to do this.
is that what we potentially could expect as of today, mort's -- more parts of the u.k. will have tier four restrictions? stuart: it seems to be heading in that direction. has seemed to flip-flop a little bit on this and particularly with this new variant. there is no real -- just how far spread it is. moment, this partial data they are working with. on the other hand, there's a big political price to pay. as we try to find this balance between the two where people can enjoy some family gatherings but hopefully without a super-spreader fears event. given what's happened over the last week or so, and the comments we've had from the scientists, the politicians, it seems quite likely but i am hesitant to say it will happen.
annmarie: we will leave it there. my christmas has gone virtual and i wish you very much a merry christmas. he's the director of me in london. thank you for joining us. rupert thompson this is still with us. i just want to pick up on the ending point from stuart. one of the main things we saw in the market was the fact that u.k. came out about this strain but the u.k. does very serious sequencing. it could be likely another part. do you see the fact potentially other countries will start doing more advanced sequencing, do you think this could lead to a more serious correction or is this just a muted fullback -- pullb ack? rupert: we are of the view this is a short-term muted correction. key,nk what will remain what we heard earlier on in the program is all the experts at the moment are very much saying
the vaccine will be effective with this next mutation. even if the virus mutates further, the other point is these vaccines, the way they are formulated, it is much easier to adapt. as long as that remains the case, that is the key point that the vaccine is effective against these increasing mutations, then the market will retain its faith in a strong recovery for next year. maybe the whole thing gets pushed out a bit. the latest mutation is more infectious which clearly means that there are more vaccinations for great proportion of the backs and -- of the population before you consider reducing social distancing. i don't think it fundamentally changes the view that in six months time we should hopefully be returning towards normality. if that remains the case, think the market will continue to focus on that prospect.
you have to remember through this whole crisis, apart from the initial panic, the markets have been very willing to focus on the six-month horizon rather than getting bogged down on the bad news short-term. annmarie: on your notes overnight, you talked about the mind blowing equity market. we are at all-time highs in the midst of a global pandemic, in the midst of the fact we've had recessions around the world. you also point to the fact that tesla is now worth more than all automakers combined. you end your notes saying you see this as like christmas, the time of fairytales. i want to ask you before we wrap up the conversation, do you think these levels are justified? rupert: are you talking about tesla or the market overall? two different answers. annmarie: let's go with the market overall and then tesla. rupert: in terms of the market overall, two key points. the first is do you think the
vaccine will be effective and have a strong global recovery? if you think that is the case, it's a pretty good reason to think the market valuations are justified. second key point, do you think rates will remain at super low levels for the next couple of years? if you think the answer is yes to both of those, you've got to say that valuations are sustainable. wordrms of tesla, the fairytale is the best way to lead. some fairytales have a happy ending, some don't. annmarie: all right, we will leave it there. thank you for joining us, rupert thompson, chief investment officer at kingswood. merry christmas. coming up, redemption for a beloved hedge fund strategy. posting its best quarter in eight years. dani burger has the details next. this is bloomberg. ♪ the usual gifts are just not going to cut it. we have to find something else. good luck!
annmarie: good morning. welcome back. i'm annmarie hordern. an fx strategy popular with the hedge fund crowd having its best quarter in eight years. they have returned nearly 7% since the end of september, last return since the start of 2012. joining us now is dani burger. other start of the year, carry was having its worst run in nine years. a huge u-turn. why? dani: three key elements of what it turned around. one, you have low rates in the u.s.. you also have a perpetually weakening dollar. at the same time, you have this reflation trade that is favoring emerging-market assets. but all that together and you have a carry trade that is doing well. funding the carry trade is a relatively new thing. when we have a dollar that has fallen 13% since the march peak, it looks attractive to use that to fund it and go and buy
emerging-market assets. with the fed keeping rates low, keeping that hunt for yields very much so alive. if you use the dollar to buy the south african rand for example, it would have returned 15% since the end of september. doing so with the colombian peso would have given you 11%. annmarie: how long can this last? is this going to be another trade into 2021? dani: it is one of these things that it is so popular right now and betting against the dollar in general is so popular right now, there's always the fear the good times cannot last. look, wall street is still betting there is further weakness for the dollar to come in 2021. really the concern is that should there be another bout of volatility that could end up favoring the dollar, should there be a vaccine that could favor the dollar. if the vaccine is extremely successful in the u.s. recovers faster than other nations, that could favor the dollar. in any of those scenarios, because there's a large short buildup, there could be a
painful short sweep and a rally higher in the currency. that would really hurt this carry trade. annmarie: thanks to dani burger, breaking down the carry trade into 2021. a quick check on where we trade this morning. we did have a dip when it comes to the equity futures market in the u.s. and europe. this is on signs of potentially a hurdle when it comes to the stimulus package in the u.s. the president overnight releasing this video, saying he doesn't think the baskets goes far enough when it comes to the stim list check. right now, the stainless checks going out for $600 if he was to sign the legislation. he is saying it should be $2000 to each individual american. we do have asian equities picking up, nearly 6/10 of 1%. the pound this morning, north of 1.34. brexit negotiations continue. coming up, more on the relief package. no relief yet. president trump demands changes to the rescue plan passed by congress.
♪ annmarie: good morning from bloomberg's european headquarters. it is 6:30 a.m. in london. this is daybreak europe. >> i am asking congress to amend this bill and increase the ridiculously low $600 to $2000. annmarie: in a surprise video, president trump single he may not sign covid-19 legislation. u.s. futures slip on the news.
open for business. france resumes critical trade links with the united kingdom. travel will depend on negative covid test results. and brexit hangs in the balance. michel barnier says both sides are ready to make a final push. very good morning to you. 6:30 a.m. in the city of london. still, two of the top stories we have been talking about. stimulus package in the u.s. and brexit are front and center. when it comes to stimulus talks, yesterday, the house and senate passed it. the president has new demands. he has yet to sign it and he could in fact veto it. he is asking for the $600 checks that are some of the grout to individual americans to be boosted to $2000. let's look at where betrayed because that initial video he posted on twitter did have an impact on markets. s&p 500 futures still slipping. asian equities are recouping.
up nearly 6/10 of 1% on the asian benchmarks this morning. when it comes to brexit negotiations, still ongoing. we could see a breakthrough today. officials on both sides have told bloomberg news that we counsel he about deadlines when it comes to brexit so no one should hold their breath. things are looking positive. michel barnier saying they are pushing for a final destination. we are north of 1.34 on pound-dollar. brent crude slipping again, 1.5% lower. wti also under some pressure. a lot of this has to do with nervousness, the precariousness of the demand-side and what it looks like. you have more parts of the world going into lockdown or having stricter restrictions like you are seeing in london. potentially the u.k. the sun is reporting parts of england may enter tier four in the next few days. that could have an impact on oil
demand and that is why you see these commodities a little lower this morning. the top story is yet again coming from d.c. president trump demanding congress amend its covid 19 relief package that he was expected to sign. >> i am asking congress to amend this bill and increase the ridiculously low $600 to $2000 or $4000 for a couple. i am also asking congress to immediately get rid of the wasteful and unnecessary items. annmarie: joining us now to provide clarity on that surprise video is bruce einhorn. thank you for joining us. just a map out exactly what's going on here, what did president trump say was wrong with the legislation because the white house was involved in these negotiations? bruce: yes, it was. in his video, president trump said this $600 payments were too small.
he calls them ridiculous. variouscomplained about spending items which he said shouldn't be there. he complains about foreign aid, scientific research, complains about being for the arts, the smithsonian, the fbi building. all of these things are in the omnibus spending bill that congress passed. they are not in the covid relief bill itself. they are two separate things. the covid relief bill was attached to these omnibus spending bill which is what will keep the government open. all the foreign aid in those other things, those are routine things every year. the president is mixing things up a bit. bill is: this spending very long, like 6000 pages long. foreign aid in all of that is routine on a yearly an annual
basis. the white house was involved in these negotiations. they were initially on board with the bill. where does that leave the president now in terms of signing the bill? do you expect a potential veto or is this political theater? bruce: good question and we are not really sure where this is going to end up. it is possible that his political theater. we have seen things like this in the past from the president. but that is the possibility that thisuld go ahead with threat and not sign it. you are right that the white house was in on the negotiations or so everyone thought. stevenry-treasurer a new mnuchin was involved. he praised the deal earlier in the day. now he is out on a limited seems. annmarie: the next big thing come january is the runoff in
georgia. what does this surprise message overnight and the potential hurdle with the stimulus bill mean for the runoff election? bruce: one of the reasons that the deal happened in the end, that there was an agreement was because mitch mcconnell has told his republican colleagues that this was an important thing for their two colleagues who are running in the georgia senate election in early january, that they needed this because they were getting hammered by the democratic opponent's that the senate had been getting in the way of the covid relief bill. with president trump now threatening to scuttle the whole thing, that leaves republican senators exposed into the election. them andd position for for the other republicans, especially given that the democrats are quite happy to go along with president trump's demand to increase the payments to $2000.
the democrats always wanted more money to go in direct payments. it was opposition from the republicans that kept the dollar figure at the level the president now says is ridiculously low. annmarie: nancy pelosi immediately saying the democrats would support the $2000 covid boost to those aid checks. bruce einhorn, thank you for giving us contacts. staying in the u.s., commerce secretary wilbur ross says there's more to do on trade with china. he spoke to bloomberg about how the trumpet minute ration handled negotiations over the past four years. sec. ross: the chinese commitment, for example, to purchase agriculture is huge. i believe it will turn out that this past year that just ended will be the largest ever cultural purchase year that china has never had from the u.s. that is a very good thing because our farmers have been
hurting. we've puthough, tariffs on what a lot of goods coming from china. the major reason for that is to still have some trading room so that if we do get the kinds of concessions that are needed for these bigger issues that we have something to give them potentially in exchange. i think it was a wood very well balanced use of tariffs, pulling off tariffs on some and in a reciprocal way as they lowered their tariff and nontariff trade barriers to us believing some in reserve so that we can get the rest of the way. because we must solve the technology problem and we must solve the industrial espionage. we must solve the stealing of secrets in various ways and we must solve their efforts to
become the dominant military power at our expense. trump and you have made that a priority, dealing with the industrial espionage, theft of intellectual property. can you measure that and see where we've made of difference or has not kicked in yet? is it less today than four years ago? sec. ross: well, they have passed some legislation that moves a little bit in the right direction but big issues like market access still remain. there is work to be done and we knew that. amember, this was not complete trade deal. this was announced as a phase one. we and the chinese are both well aware there is much more to do and hopefully that will happen in the coming time. really directly
your responsibility but you are a senior official and that is the cyberattack reportedly from russia. i understand there's an ongoing investigation. can you give us a sense from any side of the government of the priority being given, of figuring out exactly what happened and what we need to do about it? sec. ross: there's a lot being done but since it is a work in progress, i am not at liberty to discuss it. i can assure you it is a very tough priority of the intelligence community, homeland security, of the effective departments and of the president and vice president themselves. this is a very serious situation. it is a very widespread hacking and very sophisticated one. david: thank you. one last short question. the defensed
authorization act. is there any question the president will sign it? sec. ross: that is obviously up to him. as you know, it passed both houses with overwhelming bipartisan support and so i would hope he would consider looking at it favorably but he is the president. there is only one president at a time and it is his decision what to do. wilbur ross they're speaking to bloomberg's david westin. coming up, france agreed to reopen its u.k. border. what does it mean for supply chains? we speak to a food distribution group. this is bloomberg. ♪
critical trade lanes. eu citizens and residents will be able to travel after showing they have received a negative covid-19 test. french official said the goal is to have traffic moving this morning, almost 3000 trucks have been stuck in southeast england, threatening the shortage of fresh food in the u.k. joining us is natosha linhart. very good morning to you. thank you for joining us this morning and for your perspective. you serve some very big clients in the u.k. like aldi. there has been severe congestion of one shipping company. should we expect shortages of certain foods? all,would say, first of our partner in the u.k. good morning to you. thank you for having me on the show. unfortunately, we do live in this community and environment.
it is also for the food industry. critically with fresh produce, this is definitely going to represent a challenge. i think we will be feeling the block that has happened between france and europe, continental europe and the u.k. in terms of supply chain. supply chain is a massive global issue at the moment. in my view, the world was not ready for this pandemic and supply chains has been a problem all over the world. we have seen it in the last few months, containers from china were not available. now we have seen the u.k. i believe there will be some shortages. annmarie: what about if there is a no deal brexit on top of this? does the port chaos, the supply chain strain, does that get worse? natasha: clearly in the last few weeks, companies like myself, we
have been trying to stockpile into the u.k. because there is uncertainty of duties which are extremely high. we have some basic categories of products like pasta, which will be affected up to 30%. it is a massive increase. to betely, this will have reflected on the consumer. this is a tragedy in my view. will be morehains difficult because of the uncertainty of brexit. createall continuing to a bit of a backstop, but it will be a very big effect. it is clogging up boards everywhere. we see the shipping companies are struggling, transports are struggling as we have seen the last few days. yes, i think the combination of
christmas, winter, brexit, the fact the u.k. is an island -- all of these things make it particularly serious. annmarie: not just the double whammy. kind of a triple one with christmas. what are the weakest links when it comes to the eu-u.k. supply chain? natasha: being an island, clearly, the biggest port of entry is dover. so, we have this one port of entry for trucks on the road, which is the most important one. and this is really, as we have seen, it is completely backed up. the u.k. is not self-sufficient with regards to its own food. conversely, the other way around, we have seen massive scottish producers who are trying to get into the european table. if it does not arrive by
christmas, they will have lost the years work. it is on both sides. it is not just the shortage of food in the u.k., but it's also the situation of u.k. companies who cannot export their own products. so, we are all struggling. it is affecting the business community tremendously. i have to say it is really this uncertainty, almost the uncertainty then saying the duties. if we all knew six month ago what we are dealing with, what is the monster we are dealing with but at the moment, this is the biggest struggle, the uncertainty. it looks as though today they will give us something or they have to wait until the end of the year, i don't know. this is contributing to the panic that we see at ports of entry into the u.k. annmarie: right now, we do have friends reopening the border. do you expect the situation to ease? natasha: it should easily of but we know the lori drivers -- the
lorry drivers coming back into france will have to be tested for covid. the quick tests. still, it will take some time. we know the products we have in the u.k., 15 trucks that are waiting. they have been told not to go to the border because there are no facilities available for the drivers. there is no basic facilities. no toilets, washing areas. it is clearly very stressful for all the drivers. it looks to be a temporary thing, but they are suffering quite a lot. annmarie: we learned overnight that lou founds a will be airlifting fruit from frankfurt to the united kingdom. i know frankfurt is a big hub and has a connection to a lot of italian producers. are you part of anything like that, airlifting? natasha: no, we cannot do it.
clearly, this will affect costs tremendously. as i said at the beginning of the conversation, just in the environment due to the fact everything has to be at the minimum price. manage not ready to backstops in any way. and airlifting products would be absolutely impossible for roy price perspective -- from a price perspective. some of the value of our products is lower than the actual cost of transporting them. you can imagine biplane, that would be impossible. that would also prop up the airports. i think they will be using it to get the vaccines. annmarie: how has all of this affected your supply chain? where have you seen the biggest level of disruption? natasha: the biggest level of disruption has been, basically, not getting the right quantity of stock at the right time.
up,risk having stockpiling which you cannot get into the u.k. because there are struggles there. the combination of panic buying within the u.k. the u.k. consumer is also under tremendous on security at the moment. one minute, they are told they are on lockdown. the next minute, they are not. the next minute, it' threatens their supplies. all of this, a combination of things creates extra costs. we've actually had to in the u.k. just in case we needed to manage it. you can imagine all the bureaucracy around it without knowing really what is the clear path to follow. annmarie: i saw that with my own eyes monday morning, the lines at the shops. some of them were going around the corner. definitely some nervousness that
annmarie: good morning. this is daybreak era. europe's largest economy may have had a woman at the helm for the last 16 years but it lacks behind other nations when it comes to the representation of women in the boardroom. joining us now is aggie control in berlin. why is the government pushing for a quota for the number of women on boards? is it really that low? >> hi. as you set, germany is really lacking compared to its peers regarding comedy women are at the helm, at the top of the most
important companies in the country. if you look at the u.s. and u.k., it is about a quarter of seats on the boards of the top 30 companies that are taken up by women. when it was last looked at by a german campaign group in september, women only occupied 12.8% of german executive roles and as well as this nine of the companies on the dax index don't have a single woman on the management board and these companies include brands like adidas that has a lot of female consumers and some of the new members like delivery hero. companies,or these will this be enough impact for them to actually affect change? agatha: this proposal itself would only implement the list of companies with more than 2000 employers -- employees. among that, it would also only be a requirement with boards
with more than three members. critics of this bill set it would lead to total is him and ae green has advocated for percentage system rather than a headcount as to avoid any form of total is him. we spoke to social democrats politicians who has been behind the bill since the start. here is what she had to say. we have been fighting already for many decades about women are not a foreign concept to the executive levels of german industry. we have secured a historic achievement because we have agreed upon a binding legal requirement for these executive boards. right, many thanks to agatha cantrill. great work, and for that story and great reporting on the numbers coming out of germany in terms of the lack of diversity of females on their board. that does it for me and daybreak era. anna edwards is next with the