in london, 30 minutes in new york. in london, i am guy johnson. my coanchor is alix steel in new york. inrhear equity markets are the red, we watched the u.k. budget unfold today. and with you the stocks are up again. guy: per ticket -- alix: particularly with tech outperforming consistently. it is getting into mired -- tech is now getting mired into what's happening with hong kong. and we are reversing a trough troughierffee -- session. we are still worried about the private, right now it is a bisection in the u.s.. we will break this down. we will speak with our guest from j.p. morgan who heads up their more -- their oil and gas research and we will talk about inventory numbers. the equity strategists are just reluctantly upgrading their target and we will talk to new -- and we will talk to them on the hour. guy: he's a 2900 on the markets at 31 so we will see what happens. as you mentioned, it's an interesting day in the u.k., the pound is getting a minor boost, the market is really shrugging its shoulders as we have seen radical plan to save t

♪ sonali: -- nejra: good morning from london. stocks look for direction as investors weigh the prospects of more stimulus with political tension. mitch mcconnell could unveil a geo plea -- gop plan today. beijing had found retaliation after the shuttering after its -- the shuttering of its mission in houston. test the shares rise after hours as quarterly earnings beat the streets. profitability meets the criteria for inclusion in the s&p 500. we got a report earlier today that china is moving to close a u.s. consulate, not being seen by some commentators at -- as some sit -- as serious as hong kong. -- saying that asian would likely respond to the forced closure of -- that beijing would likely respond to the forced closure of its consulate. the possibility of potential cuts to its larger hong kong mission. he said cutting the mission staff in hong kong to 100 or 200 people is an option. china has pledged to respond to the u.s. closing its houston consulate. will come back to that and the market reaction in a moment. we are of cou

from london and new york. conversation with wolfgang on europe and brexit. shiftsu look at massive in foreign policy because of the economic shift due to covid-19, we also have a u.s. election coming up, how will the relationship between the u.s. and europe change depending on who is president next year? wolfgang: the relationship has been in a crisis even before trump became president. by otherershadowed relationships between president obama and other leaders but there are structural issues that have nothing to do with personalities, with the exception of france, other countries are not spending what they promised on defense. there are trade disputes that are primarily related to the on theor example, refusal to allow cultural imports. views on different china, within the eu and across the atlantic, on iran. whatever will happen in november, these countries will , some will no doubt proclaim the transatlantic alliance is back. the u.s. is looking more toward asia. the eu has yet to develop foreign policy. ger

in london. 10:00 a.m. in new york. in london, i'm guy johnson. in new york, alix steel. plaque equity markets. alix: yes. we did make it to friday, so i guess that is good news. it looks like risk wants to buy the dip. we will see if equity markets can do that. the steeper trade we have been seeing very crowded, now rolling over. record low yields on that five-year. oil was lower. now trying to catch a bid. will we buy the dip into the weekend, or will lower than ever yields continue to permeate? we will break that down over the next hour. we will be joined by kathryn of the university of texas on the pandemic. of then michael morris guggenheim securities. you can only go back in florida. taking a more circumspect view of whether or not these parts should open. earnings next week are going to be a big theme as well. a lot of the big tech names are going to be in focus. let's talk about what is happening broadly in these markets. you mentioned the curve steepeners. the curve is flattening. there is pain in that trade. the u.s. 10-year yield has come down. a tight rangein

as for london, i'm not sure london will come out of that. the growth of paris, the financial center and business center, depends largely on the development of the european project. and of course they are working together to strengthen the euro partly through the release for the pandemic. and i think from this future is -- macron's future is pretty bound up with europe. tom: i have no idea what the answer is to this question. jonathan fenby, what does the party structure look like in france in 2, 3, 5 years? does the right have a voice like they had? jonathan: no. if le pen fails to unseat marcon, i think she will fail to do so, and mccrone is reelected macron is-- reelected. his party has not established itself as a deeply rooted increasingrty, fragmentation and presidential politics. francine: thank you for joining us this morning, jonathan fenby, chairman of china research. ,ater today, glenn hubbard former chairman of the u.s. economic a counsel -- economic council. that is 5:30 p.m. in london and 12:30 p.m. new york. this is bloomberg. â

i'm francine lacqua in london. the market is not only looking at the number of deaths across the world, but looking at what is going on in terms of economic stimulus. european shares, slipping with u.s. futures, the dollar snapping a five-day losing streak. treasuries edging higher with most european bonds. a full market round up shortly. let's get to the bloomberg first word news with leigh-ann gerrans. leigh-ann: the u.k. will pump 3 billion pounds into environmental projects as part of its recovery plan. the investment will be formally announced tomorrow when gives anr sunak update on economic plans. he's under pressure to introduce a meaningful package after the prime minister's speech last week failed to impress many economists. emmanuel macron has reshuffled his government. bruno le maire stays as finance minister. improve labor affairs, he's moving elizabeth .orne and ha appended thes national security legislation imposed on the city last week. her comments come hours after the government asserted broad new

tom and francine from london and new york. spain's largest utility company says the lockdowns from the pandemic dampened performance of the first half of the year. join us to talk about covid-19 and the impact on covid-19 is nacioow see a -- is ig galan. how quickly do you expect prices and demand for energy to get back up after what we have lived through the last three or four months? guess there are a thele of charts avoiding revolution of the electricity demand. markets with a -2% return, in this moment, -- we have in the past two moments in terms of demanding and certain weeks, -18 as a whole. in februaryprices so 44,level in europe, 45 euros -- now it is 44, 40 4.2. at 42, andices were now they are at 42 -- 44, 45, 46. direction as same well. america hastin suffered more than a lot of regions in recent weeks. when does that region get back on its feet, and what does that mean for demand there? ignacio: countries like brazil and mexico, in the case of brazil, the government has a stake in our sectors, quick actions to prot

i am nejra cehic in london. french prime minister Édouard philippe has resigned as president emmanuel macron's cabinet shakeup begins. bloomberg's caroline connan joins us on the line. update us on the latest. caroline: we should know the in theench government next two hours. it is possible that the prime minister, Édouard philippe, could be reappointed, because this resignation we just had is a step in the process, and we should have an entirely new government, and the question is -- does emmanuel macron want to keep Édouard philippe as prime minister? sure, he is very popular, which actually could be a problem for macron's next-- reelection in 2022. Édouard philippe has already crisesndling all of the over the past 20 years, not only the pandemic, but he tried to do retirement reform last winter, and before that, you had one year of protests with the yellow vests. emmanuel macron needs to show a fresh start with this new we will have to see whether Édouard philippe stays or not. nejra: right. so what coul

i'm francine lacqua in london. the markets are more quiet, but a lot of the focus is euro given what we've seen in the markets and what we saw with the eu leaders. the eu strengthening to a four-month high, bond spreads narrowing as regional leaders in europe make progress negotiating a stimulus package for economies devastated by the pandemic. euro-dollar, 1.1455 and gold flat. let's get the first word news with laura wright. may joink. international allies and suspending its extradition pact with hong kong, it could come today when the foreign secretary addresses parliament. tensions have ramped up in recent weeks. london could introduce sanctions over human rights abuses, a move beijing once would have consequences. donald trump is playing down arising coronavirus cases. he told foxnews many are experiencing nothing more than sniffles and positive tests are only up because of water testing. he's called -- wider testing. anthony fauci a little bit alarmist and says the two men have a great relationship. members o

there is no clear alternative to london. i don't see london being replaced. of activity,iches it's expected that activity in london will decline. one important point for your viewers that encapsulates the problem that the u.k. would have year, the u.k. is trying to get all of the benefits of being a member while not being a member. when they were a member of the eu, they tried to negotiate to get all the benefits of being a nonmember. the eu is saying, you chose to leave. if you left, you cannot get all the benefits of being a member. that is certainly true in financial services and a number of other areas. , on a: the other thing separate note related to coronavirus, britain is handling it differently than many of the countries in the european union, appears more and more with the reopening in britain, there is a different strategy at work. talk about how reopening have gone in mainland europe, in most of the countries that make up the european union. a story today about museums reopening. it is working, though, right, ambassador? anthony: i am in italy. ita

guy johnson es const on the acreage in london. is const on the acreage in london. google says you don't have to come back for a lear that a year, five years, a decade. jes staley says let's get back to the office. morei think the banks are of a pressing concern, absolute critical. if you think about the advantage that sector needs to make, the changes in diversity, in terms of gender and race, corporate culture really important in a bank as well when dealing with risk. all of these things, i can understand why he wants to bring people back into the office. i suspect it is going to be a little more flexible bringing everybody back to the 9-to-5. tom: credit suisse flexible as well. francine lacqua in zurich. we will get her in the hour. with our first word news in new york city, here is ritika gupta. ritika: negotiations resumed saturday on a compromise coronavirus relief plan. areblicans and democrats nowhere close to an agreement, under pressure because of people losing unemployment insurance this week. a stopgap measure would extend those benefits. federal reserv

in london. right here on bloomberg. ♪ >> many of those cases are young people who will heal in a day. they have the sniffles, and we put it down as a test. i guess it is like any 9.7%. people are going to get better, and in many cases, they will get better very quickly. audience, anglobal extraordinary sunday for the president and this nation. oft was with chris wallace fox news. it was a contentious interview by all opinion get a lot of fact checking of the president and his posturing about mr. biden as we stagger towards an election. right now with a perspective on this is a man with a wonderful cv. peter trubowitz is a professor within lse's prestigious to national relations office. do you buy the polls? thell remember in 2016 when polls did not work. do you show -- do you buy the polls that show mr. biden ahead? prof. trubowitz: yes, if the election were today, biden would win and probably the republicans would lose the senate. but i expect this to tighten between now and november. it is f

london with francine starting coverage out to 10:00 a.m., just extraordinary. we are thrilled, not all of us thrilled, to be back at lexington avenue on monday. [laughter] tom.ine: we will miss you, tom: i will deposit the dog down here right now, francine. a careful segue in introduction. on.ch hill, life goes new york is adapting, as everyone is to this pandemic. as the governor of new jersey told us yesterday, it is difficult in new jersey but it is nothing like what you are seeing in little rock and across the sunbelt. what needs to be done this weekend to assist the sunbelt in this pandemic? rep. hill: tom, francine, good to be with you. arkansas,utchison, of recently signed an executive mask for common requirement. if mayors want to pursue that. it would be consistent across the state. i think we now know after months, we have to live with this. people with the virus, have to follow cdc guidelines of wearing a mask in public and having social distancing. that would be the number one thing we could do in the sunbelt, to follow cdc guidelines. tom: how are

>> good morning from london. i am nejra cehic. manus cranny is in dubai. this is "bloomberg daybreak: europe." stocks start the week strong despite another record day of coronavirus infections. goldman sachs expects a wider contraction in the u.s. economy this year. across the atlantic, the bank of france governor says the country's economy is picking up faster than expected. christine lagarde sees disinflation ahead for the eurozone. the german lender looks to fill its top job as soon as this week in a bid to end a shareholder revolt. 6:00 and in -- 6:00 a.m. in london. you have not had it so cheap for quite some time. five year low in dollars. record no in pounds. , thedity from my friends munificence of central banks is gushing in the form of liquidity. it goes back to the old story which is where do you find the velocity, where do we start risk-on.he bonkers jp morgan, citigroup, look to the hinterlands of recovery. good to see you again. bita: goldman sachs takes a of a different view in terms of the rest of the year but i still see some growth coming

i'm francine lacqua in london in london. biggest tech company sap is selling its stake in its qualtrics unit two years after for 2 -- $8irm billion. christian klein says the spinoff is win-win. qualtran: it will allow non-sapocus on the customer base and second, despite the ipo of cost, sap will remain fully committed to experience management and develop further use cases for customers and that will continue with the joint go to market. fear, air's worst second wave of coronavirus is holdrned lockdowns could the recovery until next year. the airline posted a loss in the three quarters to june and it will lose money the rest of the summer. ryanair says the virus could hit demand for months to come. that's your bloomberg business flash. nejra: thank you. -- francine: thank you. health officials are grappling with a second wave of the pandemic. china has reported them most domestic cases since march. spain, india, and australia are facing rising outbreaks. we'll get the latest with a virus expert this hour but first, let's disc

i was taken aback by the debate in london with masks. i believe we are wrangling about waiting a week or two to do it. dialogue, itest seems, in the united kingdom. british way ofry approaching things, isn't it, tom, trying to do with all .ventualities finally you come to a decision and you are concerned if it is the correct one. it is the correct one at this point in time. we are watching with great hasrest how the debate become so politicized. we are scratching our heads, trying to figure out whether it is the right thing to do, but it is not politicized the same way as in the states. you mentioned in the headlines, the president finally wearing a mask to walter reed. that is may be a big step in the right direction. one angles certainly there. us with an will join update, leading the way, the effect on the economy and of course across the different markets. with news in new york city, here is ritika gupta. ritika: good morning. 15,300 newed record coronavirus cases in florida, the biggest one-day rise since the outbreak in the u.s. th

guy johnson stepping in for francine lacqua in london. jobless claims in america, hugely important economic data, but the real economic conversation will be in frankfurt. absolutely. the ecb today likely in some time,ust merely to mark there may be some tweaks in terms of determining will it have an impact, but it will not be major. the ecb is waiting for more data. the ecb is also waiting for meetingnd the council which will determine this rescue plan, 750 billion euro rescue plan, and everybody is waiting to see what happens there. yousef: a medical meeting today -- tom: medical meeting today, first do no harm. right now with first word news in new york city come here is ritika gupta. ritika: president trump is shaking up his struggling reelection campaign, replacing manager brad pascal. pascal has been under fire for some time, coming less than a month after the resident's sparsely attended rally in tulsa. the twitter accounts of some of the most prominent american political and business leaders have been hacked, amongst them, barack o

♪ nejra: good morning from london. this is bloomberg daybreak: europe. these are today's top stories. stocks trade mixed. the dollar studies after the fed's rates near zero. u.s. gdp due later could be the ugliest report ever. tech gets a grilling on capitol hill. lawmakers accuse the ceos of alphabet and amazon of using their power to crush rivals and squash competition. all companies report today. an earnings onslaught in europe with results from big banks and oil. standardto the ceos of charter, credit suisse, and shell. welcome to daybreak europe. let's get to that earnings onslaught. credit suisse numbers broke a few minutes ago. credit suisse is to create a global investment bank. we were reporting that credit suisse was planning to announce a major overhaul of the business. we learned that it's creating a global investment bank, combining the chief risk and compliance officer roles as well. in terms of the numbers, net revenue beat the highest analyst estimate. net income also beat the highest estimate. the provision for loan losses coming in at 2

i'm francine lacqua in london. the markets are moving on a couple of things. they are looking at numbers of infected across the world, but also the fed decision. stocks are struggling for direction. treasuries pretty steady. it is all about the fed, the policy meeting, and what they will give us in indications. in asia, modest gains in hong kong and south korea. they outperformed in china but low volumes. -- 1957.157 let's get straight to the first word news in london with laura wright. james: the uk's looking at ways to loosen its coronavirus quarantine rules after restrictions on trips prompted backlash. one possibility is abandoning blanket restrictions in favor of regional bands and another is reducing the time passengers arriving in britain need to stay in quarantine. the u.k. and u.s. voiced concern about hong kong's election after a flurry of media reports the government is considering postponing the vote maybe for a whole year. hong kong's opposition argues the coronavirus outbreak is being used as an excus

tom and francine from london and new york. we are looking at gold because it is trading near $1900 an ounce. the dollar extending the week's stride. we want to show where we are on that, 7.01. stocks in europe are falling intend them with u.s. equity -- in tandem with u.s. equity futures. if you look at yields in the u.s., they are touching lows, tom. tom: the bond market does it switch, and we have had two days of lower yields. 10-year, 5.92 rounded up past that economic data as well. i cannot tell you exactly when, but i am certain or than anyone that is associated, is a fed official. kocherlakota has made it. the economic slowdown -- i have the clearest memory of 100 days or maybe 120 days ago, kocherlakota sticking his neck out and saying fed, do something and do it now. here is the former president of the minneapolis fed. >> the fed should be doing all that it can to stimulate the economy in the current setting. both the further current mandates in terms of trying to get inflation back up to 2%, and try to lower unemploym

let's get to the first word news in london. has raised the idea of postponing the presidential election. he tweeted, ballots should be delayed until people can safely vote. this is something he does not have the power to do alone and would need the backing of congress. mitch mcconnell says the election date is set in stone. the u.k. has raised lockdown restrictions across the north of england. greaterimpact the manchester and parts of yorkshire. people will no longer be able to meet indoors with other household area chinese president -- heping is calling for told a politburo meeting china should focus on boosting local output. as part of a so-called circulation model to reduce reliance on the international economy. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. nejra: u.s. gdp crashes. the american economy severs its sharpest downturn since the 1940's. next, how the pandemic has ravaged businesses across the country. ♪ nejra: th

tom and francine from london and new york. management the aries chief executive officer discussing the new $3.5 billion special opportunities fund, which is designed to sweep up the of companies hurt by coronavirus pandemic. >> i think we all have to be very careful and we have talked about this before that we do not conflate the markets and real economy. allhile the technicals and of the liquid markets that the fed has been supporting are fantastic, if you peel back and look at the fundamentals, the recovery is uneven. we have to make sure we don't confuse a rebound versus substantial recovery. >> where is fed liquidity not reaching? where are things attractively priced? >> we have been able to find distressed opportunities in first-order covid impacted industries like travel and leisure, advertising, media and entertainment. if you move to the second order, you have to look at it in two places. where is the liquidity not finding its way? thee are certain pockets of mortgage-backed securities market that have not been support

i'm nejra cehic in london. another production delay. the stock fell 10% in extended trading sparking concern the world's largest chip maker will fall behind its rivals in an area it once dominated. the most powerful chip will go on sale at the on the other hand 2022 or 2023. a year behind schedule. the nasdaq erased a huge monday rally. concerns of plunges in microsoft and tesla. the biggest internet and software companies have fallen in six of the last nine sessions. janet, it is interesting because all 11 tech companies that have reported have beat earnings forecasts but the sector is gone . does that stock market reaction versus the earnings tell you it is time to take some profit from the tech sector? > i think the sector has has done really, really well despite that we have been in a very difficult economic situation. the rally mainly driven by the big techs. it is normal for markets to take a breather on this kind of strong rally. we still -- in the sector. t is quite normal. pnewline we'll pick up on this in a moment. you stay wi

i'm francine lacqua in london. we have breaking news the last 20 minutes. china says that the u.s. has abruptly closed its consulate in houston. that is having an impact on the market. let's get the markets. risk sentiment looks a lot shakier after china says the u.s. abruptly ordered the closure of its consulate. most european indices have extended declines to session lows. s&p futures accelerating their dissent. i did want to show you gold and silver. let's get straight to the bloomberg first word news. ispresident donald trump restarting virus briefings. there was a shift in tone with the president urging americans to wear masks and avoid risky behavior. the death toll for the virus in the u.s. has topped 140,000. cases are still growing, especially in southern and western states. president trump: it will probably, unfortunately, get worse before it gets better, something i don't like saying about things but that's the way it is. we are imploring young americans to avoid packed bars and other indoor gatherings.

i am francine lacqua here in london. the markets are focused on data in the u.s., stimulus in the u.s., and for july manufacturing 51 .1, instead of the 50 that was expected. the other thing we are really ,atching out for is gold, 1897 within a whisper of 1900, which will be a big psychological impact. now let's get to the bloomberg first word news in london with laura wright. hi, laura. hi francine. ,rising for the first time about of march to 1.4 million, but dropping slightly. the data comes as hundreds of billions of federal aid is set to expire. the u.s. economy could be at risk of a double recession. a vaccination program for the protect ait ceases to second wave of the coronavirus. twice as manyple as last flu season. at shots available for the risk groups will be available to everyone over the age of 50. disney is canceling the august release of "malan" and delaying "avatar" by more than a year. date.ime, no new release some cinemas are also having to push back reopening plans. global news, 24 hours a day, on air

the head of multi-asset at royal london asset management. we are going to look -- be looking for prime spots. some investors are pinning their hopes and strong investment banking results. this is bloomberg. ♪ >> you are watching bloomberg surveillance. to the jp morgan and citigroup as well as wells fargo development. investors largely expecting lousy results, but there may be positives. joining us to discuss is danny. >> there might be some bright spots and one of the things that might come out as a winner are the big investment banks. lossready have this credit baked into the picture here. we know trading results will come out somewhat stronger. so this beacon of hope and surprise on the upside is investment banking. that means ahead of this earnings season, you should be buying the big capital market base. things like goldman sachs, morgan stanley, jp morgan. it might help reverse some of those mark to market losses and private equity investments and they have more flexibility to stack up on their loan loss reserves to help them battle

good morning from london and from new york. guy johnson in london for francine lacqua. tom keene in new york. lots of action on economics through the week, but overlaying all of that politics, we saw yesterday some important shifts in the united states of america on the distant south china sea. that full's in the pacific rim dynamics, a good theme -- that folds in the pacific rim dynamics. a good theme to speak with jeremy stretch. there is such an interesting linkage to china. explain to our audience -- i know you are quite good at this -- explain to our audience the profound linkage of australia through the south china sea to china. jeremy: what we have seen over the last two decades is the increasing linkage of those economies because the australian backdrop is driven in part by commodities, and those commodities have been axtensively consumed by chine as the chinese economy has exploded over the momentum of the last two to three decades. traveling tourism between china and australia. the signs that china has been recovering rather earlier from the ravages of the cov

tom and francine from london and new york. joining us with some of the smartest research notes around is george saravelos, deutsche bank head of fx research. tom and i love reading the things that come out, targeted to their clear -- they are always smart. you put out something asking how high euro-dollar can go. what are the dynamics there? george: thank you for your kind words. i think we are undergoing a regime break with the dollar. these are broad dollar dynamics. we have had positive european news which we have talked about. what we have here is the end of dollar supremacy. february-march, and the first one is the end of yield supremacy. er, dollar was a high-yield now down to zero. hedgevery cheap to american assets. second, the end of growth supremacy. the virus economy trade-off has not proven accurate. the u.s. has not managed the virus as well as the rest of the world, so we expect more downside, more surprises from america compared to europe and north asia. and also policy supremacy, i would argue. in the u.s., we

nejra cehic joins us from london. i am absolutely baffled by the need of the united kingdom to take a summer holiday. what is this debate in london about air bridges out of heathrow nejra: to me, the air bridge will be to france if i could get that holiday in the summer. it is about allowing travel to european countries without having to quarantine for 14 days. we have been expecting this week to get that announcement from the government, including some countries like france and italy, but some would still be exempt from that. the other thing we are looking forward to is the july 4 reopening of the pubs. some are calling it super saturday. reallyat will be interesting after what we have seen in america, the virus story as we go into the long weekend here is really quite something. we will give you some coverage on that today as well. right now with our news in new york city, here is ritika gupta. time, u.s. the first daily coronavirus cases rose above 50,000. there are increases in big states including texas, florida,

in london, 7:30 am in london, and this is bloomberg. ♪ tom: "bloomberg surveillance." good morning, everyone, from london and new york. we are talking with rupert blackrock.out there is a perspective of politics from mr. harrison, but he looks to blackrock for their guesses, their forecast, their treatment of the interest rate market. weides gold moving today, have persistent yields down. how much is lower for longer at blackrock? the dots are there for the federal reserve, and a big shift to 20 22.2021, even is blackrock managing money for lower for longer, out say five years? years. maybe not five clearly we are in a lower for longer environment. have implicit yield you curve that yield curve -- we have implicit yield curve control for central banks. looks a little bit overdone. there is scope for quite a large shift upward in the u.s. economy over the next two or three years. i would probably expect yields to rise. we would certainly be a little underweight on the long end of the curve, thinking that we could get some steepening over the next couple of years, and al

i'm francine lacqua in london. tom keene is in new york. shrinking 12.1% in the second quarter matches the estimates that we have been speaking to. italy was ugly but better than expected, so it does seem that when you look at the overall picture, inflation, that inflation rate coming in at 0.4 percent, that is higher, a touch higher than expected. tom: this is economic data, and we need to do what we do at bloomberg, which is explained the way they quote gdp data in europe is different than america. the 12% number is equivalent to number yesterday in the united states. it is showing tension in europe as well. friday --low on this is it absolutely extraordinary? francine: i feel like we have not had a quiet newsday on a friday in quite some time. .e had quite a lot of earnings quite a lot of politics with the latest declarations by president trump, and there is just quite a lot overall in geopolitics as well, so we will get through that in a second. that's get to the first word news with ritika gupta. ritika: good morning, francine, tom, se

from our world headquarters in new york and london. francine, one of our staff said it is a nudgy newsday. it is almost august. his europe, like every year going to shut down, or is this year going to be different? francine: i think this year is going to be different because a lot of people are working from home and people will continue working on holiday. when you look at the markets, they are probably range bound and that is where the nudgyness comes from. we have earnings in europe that will give insight and you have the spat between the u.s. and china, which is significant but is not translating into concrete market movement. tom: we will talk about china and a moment. airlines front and center. right now, with our "first word news," here is ritika gupta. ritika: china may retaliate for the closing of its consulate in houston by targeting the u.s. consulate in hong kong. that is according to the editor of the chinese communist party newspaper, global times. he writes the u.s. has over 1000 staff and that means it is a spy center. t

london time. we will discuss the future of the investment management industry with keith skeoch from standard life aberdeen. this is bloomberg. ♪ francine: economics, finance, politics, this is "bloomberg surveillance." let's get straight to the bloomberg business flash. >> -- is launching a review -- boohoo is launching a review of its suppliers amid concerns about labor exploitation. shares in boohoo have lost a third of their value this week. the clothing company could face an investigation under britain's modern slavery act. to 2200s to lay off up u.k. staff at jaguar-land rover factories. plant40% of staff at the face dismissalss. the company is owned by deutsche post, which just announced a guidance for the year. slumping on reports the u.s. may punish banks in hong kong and de-stabilize the currency peg to the dollar. hsbc may even be a specific target. the british lender makes more than 2/3 of the pretax income from hong kong. hsbc recently back to china's new security law, drawing criti

i am anna edwards in london alongside matt miller in berlin. matt: today, the markets say start how you me to go on. equities begin the week on a tear with the csi up more than 5%. european futures pointing to big gains on the continent. the cash trading is just one hour away. here are your top headlines from the bloomberg. coronavirus infections hit a global one day record over the weekend. expects a deeper contraction in the u.s. as the infection rate stateside rises to 2%, but equities prove immune to the bad news with chinese stocks leading gains. wall street is playing catch-up after friday's independence day holiday. vacuum.the power commerce bank looks to fill its top jobs as soon as possible in a bid to end shareholder revolt led by activists investor cerberus. germangetting right now factory orders up 10.4 percent. sounds like a big number, but of course, it's from a low base and it misses the survey by a lot. the surveyed factory order, the expectations for factory orders soth over month were 15.4% we only got 10 point 4%. much better

i'm nejra cehic in london. sap has raised its free cash for 4 billion euros after the company announced plans to sell off its unit qualtrics through a public offering. it marks a quick turnaround from the purchase in november 2018 which received lukewarm reception from investors put off by its price tag. christian klein, thank you so much for joining. talk us through the rationale of this qualtrics ipo just two years after the record deal. when we are talking about qualtrics, let me outline qualtrics was one of the best acquisitions as if he ever did. they above -- performed above and beyond. three months back when i become sap, ryan smyth and i discussed options about how to move qualtrics to the next level and a partial ipo, and we are both fully convinced it is a win-win for sap and qualtrics. why? first, it will allow qualtrics to focus on the noncustomer s.a.p. base in a high-growth market and second, despite the ipo of cost, sap will remain fully committed to development joint gonue with the to market. sa

♪ >> good morning from london. i am nejra cehic. manus cranny is into by. this is "bloomberg daybreak europe." these are today's top stories. the white house makes good on his threat to leave the w.h.o. stalls aseopening u.s. cases approach 3 million. the hong kong dollar pack is in the firing line. trump advisors want to destabilize the peg. slums, as concerns grow about washington may punish hong kong-based banks. the u.k. chancellor unveils the government's plan to pull the economy out of its deepest slump in centuries. boris johnson says the u.k. is ready to leave the e.u. without a trade deal. manus: the line from the vice chair, clarida is that there is more we can do, more forward guidance. nehra.orning, nejra: good morning. if we look at markets, we were seeing some gains in asia, we china.e to see them in we saw some green on the screen for u.s. futures after the index closed lower yesterday. now those gains have been given up. seeing in negative print for european futures, they'll. interestingly, i made the risk-off sentiment in equities, the 10 y

london doing better than the cotton on markets. london flat, continental markets down. we will continue the coverage at the top of the hour. the cable show takes to the air on dab digital radio in the london area. this is bloomberg. ♪ guy: i am guy with alix steel in new york. this is the european close on bloomberg markets. from.k. is banning huawei its generation of mobile networks. here is the u.k. cultural secretary announcing the move in the house of commons. >> the best way to secure our network is for operators to stop equipment to build the u.k. future 5g networks. guy: operators will not be able to allow huawei components to their 5g networks after december 31 this year. ,oining us is jeremy thompson u.k. huawei executive vice president. walk me through your reaction to this decision. jeremy" it is a very disappointing decision and i think it is bad news for everyone in the u.k. with a mobile phone. the government has been bound to this position by huge pressure from the u.s.. we have had a steady stream of senators, congressmen, and others. the draft announc

in london. thrilled you are with us. everyone is really talking, and this goes back to the chancellor's speech yesterday and what we will hear from biden today about a labor picture. and the shift from a pandemic and furloughed over to a real question about job layoffs. francine: yeah. i think this is the time. in the u.k., we had the many budget yesterday that gives a little more support to workers. if you look at most of the furlough schemes in the u.k. and what is happening in the u.s., you can assume some of the money would run out by the end of the summer. this is the exact time to look at the permanent shift to the labor economy and what did come in two to three years. tom: we have a terrific our for you. we will talk to our guest about mr. buffett, mergers, and acquisitions. we acquired the first word news in new york city. ritika: joe biden will call for a moderate approach toward reviving the u.s. economy today. in his speech in pennsylvania, the democratic nominee will stay away from m

i'm francine lacqua in london. sales at roche took a hit from the coronavirus pandemic despite the boost of sales from the anti-body test. sales are now recovering. joining us now is the chief executive officer of roche. thank you for giving us a little bit of your busy schedule. i want to talk about anti-body testing. is the world's testing capacity sufficient right now? >> demand for covid-19 testing is clearly outstripping the supply and the bottleneck is not so much with anti-body tests. the actually molecular tests which identify whether you are infected or not. demand is enormous and therefore it is so important that tests are really allocated to those patients with symptoms. is patients and any source very important that we do everything, every one of us to help or reduce infection rates by keeping social distance, washing our hands, wearing masks. otherwise it will be very, very difficult to keep up with demand. francine: do you think in this way, we would get a handle on covid-19? i heard you have to test

i'm anna edwards, live in london. let's turn to fashion and the ethical sustainability issues that plague the industry. plunged after a report some of its suppliers were paying workers as little as 3.50 pounds an hour, less than half minimum wage. the company says it is reviewing its supply chain. jennifer joines is now over the phone. jen, good to speak to you. about workingerns conditions have been raised for years. what is new now is that we are in the middle of a global pandemic and not only that, there is heightened awareness about structural inequality and how it's affecting marginalized groups. as it pertains to boohoo, they are the latest company having to address these concerns that there are poor working conditions in their garment factories. since those reports came out, boohoo said it dropped two of its suppliers and the company itself found no issues with working conditions at its facilities. but there's still real concerns about the rigorous turnaround schedule of that, fashion and cheap close and exploi

i am tom keene in new york, nejra cehic in london for francine lacqua. there is an uproar in london about how you are going to travel and if you are going to quarantine. nejra, we must look in this hour, these unfolding events in hong kong are extraordinary, and the prime minister says he will take many citizens into the united kingdom. is that right? than 3absolutely, more million potentially hong kong citizens are being allowed citizenship in the united kingdom. extraordinary developments in hong kong. -- not a lot of clarity and it is difficult to see where the risks actually lie. whether it is easy to abuse or difficult to apply. tom: i agree with you, strongly. i think there has been an getting totion of their friday morning, of getting into the weekend and the experience of each and every day. our team in hong kong is working on that. working on that 24/7. now with our continued reports, our "first word news," in new york city, here is ritika gupta. ritika: for the first time, u.s. daily coronavirus cases rose above 50,000. there were increases in

in london and 10:00 a.m. in new york. with alix steel. welcome to bloomberg markets. the claims number is better than anticipated for the job cuts, the permanent job cuts from companies like united and i wells fargo potentially keep on coming. alix: they are the clouds in the background but if you are a tech investor or a chinese investor, you will keep buying everything. that seems to be the theme of the day with the nasdaq climbing and although fang stocks climbing yesterday. the interesting thing for me is it encompasses what we are dealing with. gold and copper are both rallying. we haven't seen this level in gold in five years on this level in copper in one year. one is a fear play in one as a growth play so it doesn't make sense but we will break it down. guy: we are getting some data out of the united states, wholesale inventories month on and that number has been trending lower. trade sales coming through significantly better than anticipated, 5.4%. the prime number was really ugly and that was -16.9 which has been revised slightly higher but this is late data

mattin london alongside miller and berlin. last trading day of the month. last day of the month. >> happy friday. the endets say, is that of the good news? as european nations start reporting gdp slumps, the markets look for any reason to be risk on. the cash trade, less than an hour away. here are your headlines. big attack it's even bigger. alphabetacebook, and tune to techsumers to solve the problems of a global lockdown. the french economy shrinks 13.8 or after an increase in jobless claims shows the recovery is in shaky ground. ibar, bnp arab are -- par beats all but one of the big wall street banks. just an hour from cash trading. let's look at futures. futures futures, u.k. are down but only slight moves. nothing material. nothing to show us what kind of direction we can expect. futures right ww, if you take a look at the eif screen, also slightly mixed this morning. of working slew earnings news. i will kick it off right now with natwest. impairment charge of 3.5-4.5 billion pounds. expecting less than one billion. in the second quarter, more than d

guy johnson is in for francine lacqua, and london. think it is remarkable how serious this has gotten, and yet even in the news articles, we are talking about a phase one trade deal like we still want to do business with them. yet here we go with some serious political moments. guy: and it is going to get tougher and tougher. i don't know what business is going to do about this because i think they were already in a tough place, particularly u.s. banks. it is likely, as this progresses, the chinese will put more pressure on them, the u.s. will have to put more pressure on them. they are going to have to take sides. yesterday a guest walked the overlyot sounding enthusiastic about the decisions he had to make. it is really going to be tough. the chinese will pile pressure on. tom: maybe we will see that pressure today. we have our people in hong kong watching the story. also in beijing, karen leigh scheduled to be with us throughout the money. in new york city, here is ritika gupta. ritika: president trump is due to punish china becaus

i'm francine lacqua, here in london. let's get straight to the bloomberg first word news with laura wright. the french, spanish, and italian economies have suffered sharp contractions. down 18.5% for three months. data for the whole of the euro area comes out at 10:00 a.m. and is expected to show a 12% slump. president trump has raised the idea of postponing the presidential election. he says it should be delayed until people improperly, securely, and safely vote. it is something he does not have the power to do alone and would need the backing of congress. mitch mcconnell says the election date is set in stone. bnp paribas has said there is a performance blowout in fixed income. 150% from a year earlier. the french economy does not see a recovery from the coronavirus crisis for a couple of years. >> it will be stronger in some, slower in others. so as we said, we should look at -- before it is back to the level -- we don't see that mid-2023.before global news 24 hours a day, on air and at bloomberg quicktake, powered by

live from new york, i'm alix steel, with guy johnson in london. this is "the european close on bloomberg markets." we have hospitalizations, deaths, and cases arising in florida, turning the leg lower. even big tech can't seem to save the sentiment today. it? it's amazing, isn't were talking about the by everything rally, everything going up, now everything seems to be going down. seenight we continued to strong performances generated maybe china, strong csi, we will talk about that a bit later. the dollar at cny continues to remain below seven, which seems to be something of a catalyst for equity markets. but again even that is beginning to fade a bit at the moment and we are starting to catch a bit bythe u.s. back end, down 5.7 basis points switzerland moving a little bit. the bond market starting to catch a bit. what are we going to be talking about? we have great guest lined up for you, we will be talking to citadel a little bit later on. we have an exclusive interview ofh joe mecane, head execution services at citadel. we are going to figure

guy johnson es const on the acreage in london. is const on the acreage in london. google says you don't have to come back for a lear that a year, five

annmarie hordern in london. philips has reported second-quarter earnings that beat the street estimates. the health technology company saw a drop in demand for non-virus related treatments in the three-month. , offset by increased demand for ventilators. the company is one of the world's biggest makers of ventilators and expects to return to growth in the second half of the year. joining us to discuss is frans van houten, ceo of philips. asonder first of all, someone who has so much experience in this industry, but surely sees what has happened as completely unprecedented, how does your experience in q1 and q2 change your outlook for business in the covid era? very big experience and at first, we were focused on our triple duty of care, taking care of the demands of our customers, health and safety of our people, and business continuity. we have been delivering a satisfactory result despite the circumstances. shift inso seeing a how health care will evolve in the future. the validation of our strategy with a str

in london that means it's 10:00 a.m. in new york. we're 30 minutes into the trading day on wall street from london. i'm guy johnson in new york. alix steel is off today. welcome to bloomberg markets. kaley, what are stocks doing ahead of that? >> what started in china encouraging stock buying trickling through to the rest of the world. stocks higher by the better part of a 1.5% or more. guy: and it's really strong economic data as well. this is a diffusion index month-on-month. bear that in mind when you think about what is going to happen. i.s.m. at 57.1%, kaley. that is up from 45.4 last time around. this is the bulk of the u.s. economy. this is a june number they have economist poll were expecting 54.2. so it is well north of that. the jobs number we'll wait for the details of that tomorrow. i'm really curious as to what is happening in the employment picture right now. but over the next few days, we'll get more employee information on that following last thursday's blowout data. but this is a very, very strong number. how did tha

jonathan ferro, i will be joining him in london. this is bloomberg. ♪ alix: left from new york i'm alix steel with guy johnson in london. what are you reading right now? on the bloomberg terminal -- our top stories on the bloomberg terminal outlined hedge fund fees. some have been able to raise their fees, for most that fee model is a thing of the past. joining us now as andrew beer, a dynamic beta investments founder. the hedge fund guys probably hate you, andrew. the question is, why did fees here? how do we get to this model that totally fell apart and where does it go from here? andrew: it is a very good question. i thought the article was terrific. in central issue is, back the 1990's when the business was the two and 20 model was designed for small funds. if you are raising a fund, having a high management fee allowed you to cover your expenses. if you did really well, you participated in the profits. as the business has become institutionalized, people have not done enough work in terms of re-examining whether the fee struc