manus: good morning from dubai. it is "bloomberg daybreak: europe." i am manus cranny. annmarie hordern joins me. equity futures fall as protests hammer u.s. cities nationwide for the seventh night. president trump threatens to deploy the military to end the it, ofas he says lawlessness. new york city is under curfew for the first time in over 70 years. said the second

curfew takes effect at 8:00 p.m. eastern time tonight. the u.s. forasts double standards after its treatment of its protesters. then stocks sit higher as pboc unveils measures to boost lending to the real economy. 6:00 a.m. in london. 7:00 a.m. in paris or berlin. understand whyo markets really are looking through the threat of martial law. hisammons sent through notes. he said if you see this black swan evolve, i.e. curfew across america, you are looking potentially at equities to retrace all the way back to march 23 levels. of course, trump is potentially saying that he could bring the military onto the streets, saying the second amendment will not be affected. annmarie: exactly. good morning.

this is the question investors -- i read that note from ben ammons. the fact is, this divergence, what is going on in terms of wall street versus main street, the disconnect between the markets, which had a three month high, and what is actually happening around the world, let alone the fact that we are still dealing with a global health crisis and pandemics, tensions between beijing and washington, the unemployment rate is expected to be the worst since the 1930's, near 20%, and civil unrest across america. it didn't turn to widespread looting in the city. that is as i speak to you at new york city's under curfew -- as new york city is under curfew and we will have another curfew tomorrow and it will start even earlier, manus. let's quickly look at what the markets are telling us this morning. we are seeing global equities in terms of divergence. downsideutures to the under pressure given everything i just told you there.

social unrest continues in america. investors assess the prospect of the deployment of u.s. military. as her president trump's address, we will get more on that in a moment. upside, upies to the .7%. closely watched measure yesterday of u.s. manufacturing rose in may. the pboc injecting some help into the real economy. you are pointing towards a higher start. that's take a look at what's going on across assets. the dollar index, 11 week low. no real moves in the bond market. oil on the front foot. we are waiting to know with opec will meet on thursday. under discussion. do they taper? do they not taper? agree?di and russia i know you and i will be looking forward to that meeting. potentially and likely on thursday. let's get more on our top story. president trump has threatened to deploy the u.s. military to end what he calls the riots calls riotswhat he

and lawlessness. unrest continued over the killing of george floyd, an unarmed black man, by police last week. pres. trump: if the city or state refuses to take the actions that are necessary to defend the life and property of their residence, then i will deploy the united states military and quickly solve the problem for them. annmarie: later this hour, we will speak to our report on the west coast. for now, let's go to washington d c we are joined by bloomberg's john carney. thank you for joining us. i know it is late on the east coast. what seems to be the president's strategy and his response to the protests we are seeing around america? john: he is trying after the pandemicus epidemic -- . protests widespread and violence by some of the

protesters across the country that project an image of .trength, of power and he has taken a bit of a leave from richard nixon, declaring himself a law & order president, and this unfolded at an extraordinary way this evening, when he, you know, as was a protestere at the white house, and all of a sudden, the policeman fired tear tear gaslicemen fired against people who were demonstrated and peacefully, and his he walked -- he made address said he was going to deploy the military to -- you know -- took home the tensions tensions ande violence. he left the white house to go to

this church that had been set on fire yesterday. so it was just a remarkable moment. in the trump presidency and in recent american history. pres. trump: and of course -- manus: and of course, good morning to you, john. this is where cuomo said the president wants to make it a reality tv show of god and country, call up the military, and then go to a church and hold up a bible. as you can see, the imagery is there. very potent symbolism that that is being used by all parties in this. and i ask you, we have written our story saying that the president may use the insurrection act of 1807. in 1992, this was used took while the los angeles riots. the question is the efficacy of what legislation the president might use. he does have legislation on his

side at this stage. that isis is something going to be debated by constitutional scholars, lawyers, politicians, others. yes, this act has been put into force, put into place over the course of the last 200 or something years, but normally, a governor would have to request federal troops to be deployed. -- weere is no indication saw governor pritzker of illinois today who operated the president for his -- upbraided the president for his rhetoric, saying people are not being tough enough with the protests. i think a lot of governors would be very reluctant to call in federal troops. can he do it without the governor's permission? well, we will see.

enormous number of questions. annmarie: tuesday, november 3, that is what everyone heard from joe biden, the presumptive democrat nominee for the presidential election. how is all of this likely to play out in the election campaign? going to beis making a speech in philadelphia tomorrow. later today, actually. in philadelphia, to address this crisis in the civil unrest, in the raw feelings over the death of mr. floyd in minneapolis. ,ou know, he has to -- you know he spoke with black leaders today, monday, and they are saying, you know, it's fine. the message seems to be that it is fine to express sympathy, to express compassion, but what are

you going to do about it? he has to present an agenda, something that will move the country forward from these crises that have unfolded. over the last 50 years, sporadically, in the 1960's, and then again, -- yes? manus: thank you very much. we are going to leave it there. as you say, there's going to be a great deal of constitutional debate about whether the president can use those powers a governor'shout request. thank you very much, john, joining us on the very latest. let's get you up to speed now with the first word news because facebook employees are increasingly unhappy with the firm's lack of action against controversial comments from the president after twitter obscured one of his process, saying it glorified violence. facebook opted against a similar

move. some senior figures are now leading a virtual walkout. ceo mark zuckerberg plans to address the situation in a company meeting today. lam hasg leader carrie blasted the u.s. for double standards, blaming the trump administration for cracking down on demonstrators. plans to out against strip hong kong of its special trading status. is simply no justification whatsoever for any toernment, any economy, impose sanctions on hong kong as a result of very legitimate process of the central government -- the central authorities taking this position to enact laws for hong kong to better protect national security. for the first time, hong

kong has banned june 4 gatherings to commemorate the crackdown in tiananmen square. boris johnson plans to reset his government's agenda with a major speech. drawingcellor is also their plans to bolster the economy amid the worst recession in 300 years. sources told bloomberg his speech is expected at the end of global news, 24 hours a day, on june. air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. annmarie, you are there. you are living it. you are in new york. annmarie: in new york, where we are in the middle of a lockdown, the first curfew in more than 70 thes, and the president of united states urges states to dominate the protesters paid up next, we will discuss the market impact of all of this. this is bloomberg. ♪

manus: it is "bloomberg daybreak: europe." i am manus cranny in dubai. global stocks, as we have been saying, have seen a rebound since march. that was caused by the coronavirus pandemic, and despite the unrest in the u.s., credit suisse is maintaining its positive view on equities. joining us now for the next hour is our guest, cio of international wealth management and global head of economics research at credit suisse area always great to have you with us. i read the notes with fury this morning. do not panic or change your investment goals. that was admits to the coronavirus crisis. you said temper panic with patience. as you look at the unfolding

situation in the united states of america, must i apply patience and not panic at the moment? this is the right message, and indeed, if we take a look at also how the equity market reacted over the past few days, we are still having an equity market that is focusing on the reopening of the economy. also, when you take a look at the temperature of the market, for example, with the vix, the implicit volatility index, the same message seems to go on. i think at the moment, of course, every situation has to be monitored with attention from the part of investors, but there are important levels that have beeneen -- that have now broken to the upside and that just suggest that there is

a remaining positive sentiment, so we have kept a steady hand for now. annmarie: good morning. you talk about this steady hand, but many continue to question just the disconnect you are seeing on wall street with stocks at a three month high, but what actually is happening in the real economy, not to mention a global health crisis, and where i sit in new york and what i am witnessing is unrest in the streets. how long do you think this could last? >> in terms of this d correlation -- de-correlation, there has been a lot in the media in terms of, for example, the reality on labor markets, and then how financial markets, the take the financial markets have chosen to do on the situation. i would just highlight the following. financial markets and equity markets in particular are

forward-looking, and hence, what is really important are the recovery. of economic important indicators here to support the equity market at the moment are coming actually from the credit market. in fact, the very large purchase programs of the federal reserve as well as the ecb are going just to continue compressing credit spreads, and that will bring actually the discount rate for future earnings of companies are down. we think there is support from the credit market. lookinly, when you take a at those economies and regions that should be first to register ofo the improvement, a sense

a bit more normality in the economic activity are to be found in asia. of course, the chinese business cycle is very important for a number of not only countries around that are intimately tied to the chinese economy and the business cycle, but also sectors like commodities, for example. and you have been seeing that the eurozone equity market has now started to come back here. it is one of the regions that tends to be really correlated with the chinese business cycle as well. of course, oil is continuing to help. i think that all of that, coupled with a lot of doubt -- i mean, many investors have simply not participated in the equity recovery here from the lows. so all of that seems to be supported for now. manus: yes, you suggested that

is euphoric.- it perhaps the participation has not been unanimous. i want to pick up a couple of lines of thought they. you talked about the credit markets. i have a look at the high yield and the investment grade. the compression of those spreads. and i just want to get a sense from you as to what moves the next major move because president -- mr. powell said we are moving from emergency liquidity to credit lending. that is the next phase of the fed. do you expect further compression in credit spreads, and what does that do to the equity story if we are moving from emergency liquidity to credit lending? nannette: there's a couple of things to note here. there has sure that been this view of expanding and using the power of a central bank balance sheet to reengage in asset purchases where actually, the asset to be

purchased have been extended into credit. so that is certainly bringing just a buyer into the markets in the form of the central bank that is very helpful for the credit market to gain is poised again. that is one part of the story. the other very important part is that when a central bank asset purchase program is coupled with expansive fiscal policy, in other words, expenses from the government that are being funded by increased debt issuance by the government, then this is also quite powerful. of moneyul in terms coming into the system. now, money area supply to really increase, that was something that was missing,

for example, in the last set of asset purchases when fiscal policy in europe was contracting. so i think that also, from an economic standpoint, the credit lending is meant to actually really engage credit growth. that is supportive to the economy. annmarie: we are going to get into the ecb and a little bit. nannette hechier fayd'herbe from quite a series stays -- credit suisse stays with us. a quick look at what is coming up this week as well, we have on thursday of course that ecb meeting as well on wednesday. we have google, manus, that will be one of the things to look at. they have an agm as well as brexit today. there will be more brexit talks. manus: there will indeed. [indiscernible]

the crescendo is at the ecb. carrie lam. we will talk china. are they on the defense or offense and policy/-- in policy? we will come back to carrie lam in just a moment. this is bloomberg. ♪

annmarie: this is "bloomberg daybreak: europe." i am annmarie hordern in new york. manus cranny joins me in dubai. hong kong's leader has blasted the united states for "double standards" over the way it handles protest spirit tear gas was fired at crowds and washington, d.c. as people peacefully demonstrated over the death of a black man who was pinned down by police. carrie lam made comparisons over the way that territory has been forced to deal with riots. she also addressed president

trump threats to remove the city's special trading status. >> there is simply no justification whatsoever for any government, any economy, to impose sanctions on hong kong as a result of a very legitimate process of the central government -- the central authorities taking this position to enact laws for hong kong to better protect national security. annmarie: nannette hechier fayd'herbe from credit suisse is still with us. we see escalating tensions between beijing and washington, and of course, hong kong is in the crosshairs. does this change your positioning on potential investments/ where do you -- investments? where do you see opportunities in china and hong kong? nannette: certainly, tensions are always to be monitored

attentively. however, we have taken the view globally whether it is for assets from emerging markets, including from china. markets. of developed we have taken the view that there's some very strong, underlying societal changes that are bringing opportunities around. and just to speak, for example, and one of the societal trends that is simply population aging. is how the chinese economy the agingo accompany of its own population is uncovering potential in health facilitiesl as in

and in a number of sectors. just to say that always, of ,ourse, beyond the short-term there lies the opportunities, and these opportunities are just driven by things that are very separate from the talk that is just the top of the day. i would just have to say the following. neither for the u.s. nor for -- manus: we will pick up some of those super trends -- we are going to pick up some of those super trends in just a moment. i know you have very core views on tech, health, and emerging markets, so we will turn to that conversation with nannette hechier fayd'herbe from credit suisse. these are images coming to you from washington d.c. the president of the united states threatened to use troops to address the unrest in the city. the debate will roll around what legislation he might use to enact u.s. military on domestic

-- inside the united states. it is suggested he may refer to legislation of 1807. we are live to san francisco, next. this is bloomberg. ♪

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annmarie: good morning from bloomberg's headquarters in new york city. i am and reordering. this is "bloomberg daybreak: europe," and these are today's top stories. u.s. equity futures fall as protests hammer u.s. cities nationwide for a seventh great night. president trump threatens to deploy the military and what he calls lawlessness. new york city is under curfew for the first time in more than 70 years, but looting continues. mayor bill de blasio said the second curfew takes effect at 8:00 p.m. eastern time tonight. carrie lam blasts the u.s. for

double standards over its treatment of its protesters. asian stocks sit higher as the pboc unveils measures to boost lending to the real economy. manus, good morning. we are seeing some of that pboc action play into the markets in asia. what is the picture? manus: absolutely. the pboc, you know, is it q. week? -- qe? not if you have to repay the loans. where wet is about to are on the streets of the united states of america. curfews in new york where you are. and the risk -- the risk is that we move to a form of martial law. that is the risk the markets need to assess. good morning. annmarie: it certainly does. this note,with talking about this black swan event. yes, manus. a very different new york city than i am used to and i was not

here more than seven years ago when they had the first curfew. it started at 11:00 p.m. this evening and what people protests -- it led to a widespread looting. the famous 34th street macy's was boarded up and even that was broken into. so mayor bill de blasio, before this curfew even ended, said we are going to have another one this evening and it is going to start even earlier, manus. 8:00 p.m. eastern time. back tohis all goes what happens next from washington. we spoke to our correspondent just a little bit earlier on and as he said, yes, the president maywell use speculation -- well use the insurrection act. last used in 1992 to quell the l.a. riots when the governor -- that was a qualification i thought was quite interesting -- the governor made a request for the military at that stage, and that is not where we are at the moment. annmarie: i had to take a walk

down memory lane and my history degree with the 1807 acting that everyone is talking about given the fact of what president donald trump said yesterday and watched this address and it was quite an extraordinary scene because afterwards, he made an impromptu walk through lafayette square in washington, d.c., and that park where there were protesters. police had used tear gas to clear them. he can go to the famous church by the white house and what he did was hold up a bible and that was pretty much a photo op. really interesting pictures. really evolving around the united states yesterday and throughout the night, manus. manus: the governor of new york, cuomo, coming back and lambasting that particular tvtrayal as something of a reality show. the dollar is focused on the economy and not politics over streets of the united states of america. complacency may be setting in in

the dollar. i love it. the dollar. the longest losing streak. sincengest losing streak april 30. the dollar is focused on the reopening narrative, not on the curfew or black swan risk. the rba did not sound, i suppose, overly happy of where the dollar can go. that dollar is up at a four-month high, up 18% since march 19. they cut back their bond purchases. crude is storming up .3%. will they extend for one month to three months? if they do, you will go from a glut to a deficit. the money is sitting on the sidelines. we will debate that with our credit suisse just in just a moment. .75%.an futures up we wait for the great recess of the narrative from 11 downing

street. let's get to our top story. the president of the united states threatened to deploy the u.s. military to quell riots and lawlessness across the country. it follows days of violence after the death of an unarmed black man at the hands of police. the president calls on governors and mayors to "dominate the streets." in a moment, we will go to san francisco. but first, let's get some reactions to the events. >> i think protesting is only the beginning to allow us to express our pain for over the years, and it is our calling out to have something done. you cannot legislate away racism. >> will emphasis be on quality of life, quality of issues and making sure that we speak to those issues. you know, residential, recreation, economics, education, and safety. >> there should never be a bad

cop in any police department. if someone is bad, they do not deserve to be a cop. >> training has to be improved. it has to be better. it has to be more comprehensive in large departments and small. >> we have a crisis on top of the crisis with a side of crisis. what we have to do is extend the hand of help and say that we are going to get to the other side. voices on the the current crisis in the united states of america. let's get the very latest from ed ludlow, standing by in san francisco. good day to you, sir. a little bit more complex. we see the images appeared of course, the accusation is we have run the media driven policy uncertainty. news stories are exacerbating the wariness around event risks. where are we in terms of the escalation across the nation? know, it is still

ongoing in a number of cities around the country. the main take away from the was hist's address willingness, preparedness, to use military personnel. he did not give any indication of authority. he would have to do that and the white house has not followed up. sources have told bloomberg in the last few hours that he is considering using that 1807 insurrection act that you mention. what we do know from the pentagon is that, you know, several hundred national guard troops have been sent to washington. there is an active-duty unit from the region that is being moved into the area near the capital, but they are basically on standby. but one thing that the president did do was sort of push further on state governors to deepen their use of the national guard. we had done that earlier in the day when he held a video conference with them. he had labored their existing actions as weak.

when he said that he was going to consider using military personnel, he said it would be in response to inaction by state governors. as of this moment, with curfews in effect in new york city and washington, d.c., and a number of other cities, there are still protesters out there, and they are still coming in contact with police. wherem in new york city, one of those curfews is taking place. you know, i have to think that chicago is supposed to open up on wednesday. new york city, the last region in new york state that is still closed, it is supposed to open up on monday. how does all of this play into the reopening of these cities after still dealing with the coronavirus shut down? ed: one of the principal concerns for state governors and city officials today is the coronavirus. you have lots of protesters in close proximity to each other. i have spoken to a lot of pandemic experts and health officials in recent weeks with my reporting. coronavirus has a two-week

incubation period. to 10 show up in six days. the concern is with all of these protests, that flareup might happen in the coming days. with the economy reopening, chicago is supposed to open a lot of retail, a lot of restaurants, on wednesday, june 3. city officials today copped out as to whether that could happen. this is something that is top of mind for them. there's definitely some doubt that the pace of reopening in the economy may now slow again. threatenat may well the unemployment numbers. we have those at the end of the week. we are expecting anywhere up to 20%. bullard, etc., at the fed, might be talking about 10% at the end of the year, but these risks unemployment number and corporate america are mounting, aren't today? ed: it is showing up in the municipal bond market as well, manus. you have to think of the financial context as well for the state and municipal budgets.

they have already been hammered in the months of march and april because of the coronavirus. where you are in new york, tax revenues are down 70% in april. there is costs from covid, and policing now with the riots. they will have to pay for the damage that has been caused. there's also concern about the ongoing financial strain that these protests will have on cities, municipalities, states, and in hand with the ongoing battle against the pandemic, but also, you know, you now have corporate america are trying to reassess its we opening plans. but also, there was a big, vocal chorus from corporate america. a lot of companies issued statements. a lot of black executives from broad street put posts on social media addressing this issue, so you know, it seems that while the economy is important, this is very much an issue that is striking not just in the streets of protesters but at the heart of corporate america as well. annmarie: the city cfo, if you have not looked at that, quite moving blog post, i would suggest you do that.

ed ludlow, stay healthy, stay safe. thank you so much for joining us. let's take a look at what else is going on in the news this morning. first word news update. most dock market purchase depends want a reduction in the world's longest trading hours. they favor a trading day of 9:00 a.m. to 4:00 p.m. according to a monday -- london stock exchange. they agreed any changes would need a unified approach across europe. in light of that, they are waiting on surveys from other forces before making a decision. barclays plans to return about 700 staff to offices in the united kingdom, u.s., and india starting in july. the bank told staff in a memo that those going back will mostly be traders and others who cannot work from home. it will amount to less than 1% of the company's global headcount. bloomberg has learned the rest will work from home until at least the end of september. china's central bank has unveiled a $60 billion plan to aid small businesses. people's bank of china says it will purchase loans from smaller companies.

it is a new policy to boost the supply of lending to the real economy. pboc is using $56 billion from its lending program. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. manus, that pboc news actually is lifting the small caps that have been attempting to claw their way back from what has happened from those equities due to the pandemic. manus: yup. it looks as if all the trade uncertainties -- on the back burner for now. this is -- that is nearly a two month low. 3.8%. the greenbacks decisive move downwards at the moment, could it indicate a breakthrough moment? we discussed. this is bloomberg. ♪

manus: it is "bloomberg daybreak: europe." i am manus cranny in dubai. i am in dubai, ok? and roy horn turn is in new york. -- annmarie hordern is in new york. if i speak a little bit more slowly, we might get some of the show. the rolldown of lockdowns. central bank decisions and possibly an earlier than expected opec-plus meeting. the cartel and its allies are considering extending the current level of cuts by possibly one month to three months. the existing agreement -- curbs these in july. oil traded without direction for a second day as the market waits

to see of opec and its allies would extend the record production curbs. see if you can do a bit better. annmarie: i have to say as well this tuesday, we are not actually going to vienna if they move the meeting to thursday pit that look at the dollar. it has been below a descending triangle pattern among other key technical indicators that points to a breakthrough moment for riskier assets, especially in emerging-market currencies, which have lacked behind an equity rebound since late march. joining us on the phone is nannette hechier fayd'herbe from credit suisse, still with us. thank you so much. one thing i noticed in your notes, you would like some emerging markets. i have to ask you about sale. over the weekend, it overtook france in terms of coronavirus infections. there is a worsening situation there. did this change your mind at all about investing in brazil? -- i havewe have had to say from an investment standpoint -- really a focus on emerging-market credits, and

actually, credits in hard currencies. for now, on the equities side, we have not taken such a positive view. saying, in terms of emerging market, when these currencies, anything that is helping the economic outlook of the emerging markets is a positive. a weaker u.s. dollar is certainly among those factors, and so, we have continued to the to our views over emerging-market bond complex altogether. can i ask you then, one of the new pieces of the jigsaw we got this morning with south korean inflation, cpi drops for the second month. japan drops for the first time into deflation. when you look at that asian implex, within your notes,

know the bifurcation in terms of who will do well and who will not, when you look at the inflation and deflation story, how does that impact your emerging-market and perhaps your asian call? nannette: for sure, we are having a global recession, when everyone is understanding 2020 will be and there will be only a few emerging-market countries that will actually be able to post positive growth rates. this isgeneral context, a deflationary context. this is one of the reasons why emerging-market central banks were able to support their real economy by cutting interest rates. this is a moment were also inflation in emerging markets is coming down. back to my point about how do you take exposure to your emerging-market assets at this

point of the recovery? we think it is absolutely through the fixed income side, through bonds that are helped by central banks trying to accompany the move of inflation down. now, in the recovery phase that will be coming up later, when there is also inflation that is bitaps normalizing a little also in emerging markets, this will then be the time to consider the most cyclical assets. and there is a little bit of this sequencing. first, via the bonds, and use the time when credit spreads are wide, which is the case in emerging-market bonds, and then move on to consider some liquid -- selected equity exposures. annmarie: thank you for joining

us, nannette hechier fayd'herbe, global head of economics and research at credit suisse. we have seen unrest to continue to spread across the united states. right now, you are looking at live shot's. this is seattle, washington, over on the west coast. stay with us. we will be covering this the entire morning here on bloomberg. ♪

annmarie: this is "bloomberg daybreak: europe." i am annmarie hordern. breaking news crossing the terminal on the french economy. the finance ministry says it is 2020.to contract 11% in previously, they forecast gdp to be contraction of 8% in 2020. this is going to be a little bit

deeper, hitting the french economy. a little bit weaker. this fuels the fire towards what will the european central bank due on thursday in terms of their emergency bond buying and the rhetoric that they will apply? past reflect back on the week, some of the most hated shares have come roaring back to life pretty much at the expense of the market leaders like technology. hedge fund managers are now calling the greatest opportunity ever. dani burger is with us to discuss. good to see you. here, she would just be so happy to talk about growth and values. they have to do an homage to nejra in her absence pit where are we? -- absence. where are we?

>> it is hard to say if this will be a lasting rotation, especially for value. it has underperformed so massively over the past year and the past gay. in order for value to do better, we typically need to see some sort of pick up in inflation expectations, a sustained pickup, and bond yields moving higher, and we so far really have not seen that sustained. this really may be the last gasp of a market that tries to keep rallying, rallying in the face of expectations, and at times, the reality of what is going on in the street. even so, value is so cheap right now. especially compared to the rest of the market. we have heard from people in speaking to new sturm professors over the weekend that he thinks value is the best opportunity that it has ever been at this moment. the hope is that value is so cheap that perhaps we are starting to see the beginnings of a mean reversion that will pay off for a lot of investors and may be keep the markets going. value -- annmarie: the resurgence, is this a sign that the equity market has further

room to run? dani: that is certainly what a lot of people are hoping for. the you look at the rest of equity market, s&p 500 trading at a 22 price to equity multiple at its highest in decades. the hope is this is the last pocket of the market real fast that does not look ridiculously expensive in a market that a lot of people are confused of how it can keep going higher when we have unrest in the streets and economic woes throughout the globe. jp morgan points out the fact that even though equities look extremely expensive, there's actually a lot of cash on the sidelines and that means that there is perhaps even more room for equities to run higher. you are looking at government, money market funds, at a record holding of cash had fund managers also have a lot of cash at this point. they can put this money to work. according to jp morgan, that means you should look out for equities to move even higher from here at the moment.

it is just momentum traders that are keeping this rally going so look for the fundamental managers. at some point, to step in and make this equity rally continue on. manus, annmarie? annmarie: manus, we have seen unrest continue to spread across the united states. i am sitting in new york, where we are under curfew as well as washington, d.c.. we have live shot's. this is seattle, washington, over on the west coast, so a little bit earlier. indeed. we will see what happens next in the debate. matt and anna will carry this forward, reporting throughout the day in terms of deploying u.s. military on the streets of the united states of america. ceo's are speaking out on the killings, so we will track these stories throughout the day. ♪

>> good morning. welcome to the european open. i am anna alongside matt miller in berlin. matt: good morning. today, the markets say brace yourselves. european countries prepare more stimulus as france warns its economy will contract 11% this year. future is still pointing higher as the reopening of the economy continues. the cash trading is just one hour away. let's get your top