>> good morning from dubai. break.loomberg day today.p stories defying curfews in the united stat states, bringing active army nits into the d.c. region as a planning measure. stocks, the lobal

high and ard a record n extension from asian data adds to the tail wind. pening its economy after devastation caused by the look at us, rome favorable borrowing conditions. welcome to the show. e have breaking news headlines luftanza, 1.22 billion examining sales over the medium term. company in serious rebirth. guidance from ny

lufthansa, good morning. >> i don't know how any company can give you serious forward the amount of uncertainty they have, let alone the airlines have been battered due to the pandemic, overcoming the and able to link that 9 billion euro bailout from the government. look at the markets this morning, another risk on day, upside this to the morning, up 1%. as well higher the market sk, doesn't think a major impediment at the moment. 2020.ost oversold manus in the risk appetite clearly

currency pair, good isk confirms another green day for stocks. u.s. 10-year-year-old ticking a higher and brent above $40 a we haven't seen this ussia and saudi left the meeting in vienna. extending theg at deeper cuts, but the meeting to be confirmed, they're putting this one down to the wire, manus. et's get to the latest to our top story, that is here in the united states, protests over the unarmed black man george floyd while in police ustody are considering for an eighth consecutive night despite curfews in cities across the country including new york. pentagon says 1,600 troops have been moved to the area, but , d.c. defense officials earlier

distanced themselves from resident trump's warning that he could use active duty military forces to clamp down on protests. off, we want to begin in d.c. with john, another night, thank you so much for us, john. it's late where you are. what has been the reaction to regarding the protests? mixed.well, it's been is attempt to strike this dramatic aggressive pose seems to be flagging. his appearance before the in washington yesterday which was preceded by demonstrators being the police and by soldiers, that's come under sharp criticism from religious leaders, not just the episcopal bishop who is responsible for church, and from the catholic archbishop because

went to a shrine oday to make an appearance, a roman catholic shrine here in washington. not only that, though, that's is a ing, washington pretty liberal city, but pat the teleevangelist whose viewers are trump critical ofwas very he president's response to the protest and his photo-op in church, churches and not only that, i think as mentioned, his defense ecretary, mark esper pleaded ignorance because he was at the church and he said he didn't know why he was there. going to they were inspect the damage. a good first day

drama on moment of monday. about joe biden, where is the democratic voice, is he have any traction, anyone paying attention to biden's response? certainly, yes. most high profile appearance of the campaign tuesday, rather in philadelphia. now, did it exceed expectations, not, but it certainly didn't - it sort of disappoint. he basically said that these preceded blems long donald trump and he said i can't 0 days, in my first 10 long s going to take a time to have this healing take place. beyond that, his campaign has upsurge in donations

and since the protest his new criticism of president stance. so he has come out of this, at least initially looking pretty good. ow if the protests continue, not nearly as violent over tonight as they have been, but have to seee, we'll what happens. >> what's the situation like where you are in d.c.? i was walking through the streets of new york, i saw ots of glass on the floor, i saw windows completed busted in before shops were opening up in he morning and shops were completely boarded up, if they weren't, construction workers ere out there putting up four-by-fours. where does the country go if here after what we've been six days orthe past so? ohn: well, again, it depends how this unfolds. it may -- if there is more it seems that mayors

bring the rs cannot violence under control, people to take a second look rejection of p's of his and demand strategy suppression of the and of the protests themselves. where i am in washington, i have little, i live in a residential area. but downtown, a lot of have been vandalized and there has been arson in new used to live, there a great deal of mayhem and there was tonight, a much smaller scale than last night. safe, john harney

talking to us. we'll talk to our reporters across the u.s. to speed with your first alert news, president trump says the republican party to seek a new city for its national convention. it's been planned for charlotte, north carolina, but the president wants it to be moved restrictions.irus that's been put in place by the state's governor. didn't ident definitively say the g.o.p. was and ng out of charlotte didn't say which other cities were under consideration. angela ny, chancellor 100el delays plans to spend euros, they couldn't reach a deal. they reconvene today. latest on rounds of

bloomberg has a massiveat the e.u., intervention boris johnson who to the e.u. ak leaders later this month. told the bloco be -- taxes are already high and they won't on the the burden french people. it comes as countries grappling pay for trillions in spending to protect jobs. hours a day on pic by on quick bloomberg, journalists in 120 around the world. ann marie. coming up, the promise to

troops.large number of more on that next. this is bloomberg.

mark: this is "bloomberg daybreak" i'm manus in dubai. recovery from c the coronavirus pandemic and businesses continue to reopen around the world. gauges show economies stabilizing following despitenavirus shutdown a slew of risks on the horizon. u.s.-china relations, havoc on streets of the united states of america eventually

victories.g hard won you toph, great to have with us. one thing that i'm exploring is i t equity markets and emphasize the word "equity literally suffering from selective hearing and they only see what they want to see narrativehe reopening and none of the political angst there is around the world. do you think we're suffering selective hearing, gone a red, good shade of morning, selective hearing? hristoph: good morning, so the markets' response to the economic policies is very strong and selective, strong because the equity markets,

the nasdaq learning from the i ket section foreign view, would say the first winners are the companies, most of them are listed within the why the d this is nasdaq is so strong as i yesterday, minus 7% outperforming the european example, with the share to day of minus 17. as you know, the european arkets, so many companies and hat's why the european markets are so much with u.s. markets. different markets which is theme first, competitors and the

rest of theorms the on the planet. one of ourhristophe, writers said it's 10 weeks old, t's already taken as history's most aided. we are seeing as of last tuesday, short positions are starting to build. we're seeing the biggest build in five years. do you think that investors are to take on some of these concerns and at least give little bit of a hed hedge. hristophe: they are surprised by the strong reaction in the weekly markets as we were two minutes ago. and sometimes people don't are so nd why markets strong despite rising risks

around us. here takes different shape. we have, for example, predictions, in the u.s. putting -- the trump administration since a few years, for example, could be replaced by tax hikes, corporate tax hikes case of for example, next ats waiting for the u.s. election. and china, back just those measures. is a e economic recovery soft wand. e don't ask this shape, we expect a huge shape. ecause we have the contraction very tarm contraction in just

take arter and then as we quarters, two years to come back and people don't understand, investors don't understand why strong despite all of these risks we were political risk and risk.itical manus: and you outlined a very risk, the consumer. this, 20 words, you had million people unemployed, the management, two to six illionpeople to go in management. the explosion in savings rate, full lockdown, they paid off card.credit you say this remains, this isn't issue, is it, this is potentially a global issue? christophe: it's a global issue

likely.aid people get money once, they a very strong stimulus with the fiscal lag. and don't money orget that for each draft of contraction in the gdp, the uts, hard banks and both combined injected into economies 1.5 around. the supply chain was and t was stuck because of the lockdown, people created cash. the idea is what people view sitting or it for reopention on the day we

economies. people expect a boost in consumption in the months to come, on the outside we are a little bit more cautious that, yes, people ould spend this money by consumption and economic recovery. time.ld take this is the ability is improving progressively. annmarie: we're going to leave staying with us. we'll look at what is coming up well, the annual generally meeting later today, investors proposed pay he about $250 million. hong kong's annual vigil

1989 tiananmenhe anniversary, that's irtual, the move could lead to more protests. manus: the official projections inflation setting the scene for more policy actions. is widely expected to boost its stimulus package. friday, we get the payroll report for may. he numbers are expected to be better than april's 20.5 million job losses. the figure is expected to hit the 8 million mark. o that's the data that's coming. coming up on our show, though, for that e.c.b. announcing bond buying this the debate get into right here, this is bloomberg.

annmarie: this is "bloomberg day break." e.c.b. is expanded its pandemic emergency program by million euros at its meeting tomorrow. he sharp downgrade to the central banks forecast calls for stimulus.l monetary on the phone is christophe. for sticking around. this is already priced thin. i it is or if it's not, should say, what can the e.c.b. surprise the market tomorrow?

hristophe: just to implement and execute the strategy. the e.c.b. decided stimulative monetary to execute it.ve under c.b. has countries the pressure and under the best and you are going in he right direction from the e. c.b. perspective because they one of the hange strategy andte the the e.c.b. regarding strategy, the execution of the strategy. this is why markets are starting e.c.b. measures.

saw a reduction italian read for the onds, for example, and the first positive reaction in the uppon markets that are going markets, theropean est three months, the u.s. equity markets. manus: how do you differentiate wait for this ou merkel-led stimulus program, the didn't get it over line. iate hat be the different to the other markets or how do differentate? christo christo

in the he: i think could have strong eaction country by country according to the economic policy some d by the e.c.b. and specifications country by which would have a positive direction of the markets. to play thee prefer excluding s it were the u.k., i'm sorry for that. on the euros and play the eurozone of the european markets. manus: there is a whole other

regards to es in brexit. defying the curfew taking to the streets. this is bloomberg. you say that customers make their own rules.

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annemarie: good morning, this is "daybreak: europe." thousands defy curfews in the united states. the pentagon says active duty army units, calling it a planning measure. u.s. futures rise and push the nasdaq toward a record high. brent is higher, over $40 a and italy reopens its

economy after the devastation caused by the coronavirus. good morning to you in dubai, how are you? manus: a very good morning to you, great to have you with us. photograph ofe a me getting into a car. miss chasing ministers. i'm going to talk about lufthansa because i think it is a very important story. sales dropped by 18%. they will go through deep restructuring. in many ways, this is the story, which is, you might get bailed out, you may get money from the government. you're looking at first quarter losses more than tripling and the cost cuts will be in two

stages. anybody that believes were going back to some kind of normality in terms of employment in europe or the united states of america is deeply mistaken. that is why this story is so critical. they are going to restructure. they are going to streamline operations. they are looking at this as if they're going to sell. of 950 million euros -- 950 -- that's almost a billion euros. story, that's why this matters so much. let's have a look at the markets. the s&p 500 is loved by everybody, is charging again -- charging ahead. for me, the story is about the dollar. is it taking a breather? fed said we need

to consider negative rates. the longest winning streak since april 20. if the aussie bottom just before the stock market bottom, i decided to do something a little bit different. billiton and rio flying higher. this is about global recovery. they'resachs saying lifting their iron or targets. are you ready for rotation? let's get the latest on our top story, it's about the protest over the death of the unarmed black man, george floyd at the hands of police. they are considering for an eighth consecutive night despite curfews around the country. the pentagon has deployed 1600

troops in the streets of washington, d.c.. have -- let'sals get the latest from the west coast. ed ludlow joins us from san francisco. the latest around the country, there are troops now on the streets of d.c. is everybody taking troops from in newmp's offer ed: york there very much relying on the police force. new york governor cuomo was saying the police were ineffective on monday and seen thebut we've not national guard deployed in new york. nation'somes to the capital specifically, the pentagon basically confirmed that active army units were moved into the region around d.c. but they haven't actually

been deployed yet. the city butround not on the streets of washington dc. they're essentially waiting and seeing what is happening. there's a heavy national guard presence in washington, d.c. near the national monument. there has been some light especially in the area immediately outside of the white house like clashes with protesters. largely, throughout the day, protests in los angeles, san francisco and other cities in the midwest have been pretty peaceful. but as you say, there are active military personnel standing by. earlier in the day they tried to put some distance between the president's suggestion that the military would be deployed, and the briefing from the pentagon earlier was that the national guard was the preference when it comes to handling these protests. annemarie: downtown in new york, i took a walk on madison and

fifth. store after store is boarding up. are there any signs this will directly impact the economy? ed: i suppose the two good pieces of -- pieces of good news where that chicago will go ahead with the next phase of reopening its economy on wednesday. there was some question over whether that would happen, but the city's mayor confirmed that it would. new york city still on track to interface one of reopening its economy on june 8. governor cuomo made a point in the briefing today that it surprising given everything that's going on, but a positive move. the bottom line is, we haven't seen any economist knocking down forecasts on the economy, we discussed in the previous days that additional spending on health care, now you have to factor in the cost of damage from these rights. but there are green shoots in

the economy. the housing market is on its way up with housing rate so low. diners are recurrent -- returning to restaurants but there's been no fundamental in wherem economist they see the u.s. economy going from where it was already impacted by covid-19. the latest forecast is that by the end of the year, the economy will have shrunk by 5.7% relative to 2019. i now the focus is really on getting back to reopening the economy. will start toews be curtailed. ed.marie: thanks, let's get to the first word news this morning. the latest round of brexit talks are set in friday without a break through. bloomberg has learned the eve's now pinning its hopes on a dramatic intervention by the prime minister. boris johnson is set to speak

with e.u. leaders later this month. is likely to be told the block can offer possible concessions if the u.k. does the same. rick -- brent crude has top $40 a barrel for the first time since mark. it's a opec and its allies are close to agreeing -- agreeing to a short extension of output. ofdi arabia is in favor three months. tiffany shares took a dive yesterday after womenswear daily reported a deal maybe in certain. they are apparently concerned about the impact of the coronavirus pandemic on the u.s. economy and growing unrest across america. no comment to bloomberg from either company. 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: one man who believes in the v-shaped recovery after the

covid-19 pandemic has passed us losses will beb permanent. take a listen. recovery, v-shaped because that's what the markets are telling us. every market around the world has gone up by 20%-30% or so. i'm talking about both emerging and developed markets. i think a v-shaped recovery is in store for us, actually. >> financial markets are being driven forward by central banks. we can see that happening. there's a divorce from economic reality that we are seeing on the street. there is a racial element happening now in the united states. the market is looking past all of that simply because they know and investors know that the central bank has got their back. is that ultimately going to blow up in their face? >> i don't think so. what we are hearing from companies around the world is ,hat once the lockdown is over

customers will be coming back in droves. here in munich, i walked the streets and i see people in lines waiting outside. that means people really want to get back to buying again. over, i lockdown is think we will see a big recovery. of course the numbers will look because you have actual shrinkage in the economies around the world. don't forget, when you start looking at the numbers next year, you will see an incredible increase. economy is down by 6%. next year it goes down 1%, that means a 7% increase. so i think it will be more like a v-shaped recovery. >> i hear what you're saying about consumers, but nevertheless, the u.s. consumer was a massive part of the global economic story before -- before covid-19 hit.

will see a clear we structurally higher level of unemployment in the united states. we will get the payroll numbers on friday and that consumer spending power is simply not going to be there in the way that it was. while earnings estimates have come down, we still haven't fully felt the impact of the unemployment story because most people are still being supported by government programs. when that changes, we will feel the force of that. do you agree with that, or do you still think the consumer can act as a catalyst to keep investors on site? >> you're absolutely right. a lot of people will lose their jobs permanently, not only in the u.s. but in emerging markets around the world. they are finding out they don't need 20 people, they need 15 or 10. so a lot of people will be out of work. they willis is what

do, start a new deal program. a massiveere will be program to improve the infrastructure of the u.s., which will employ a lot of people. i think that's the only answer for the u.s. and also for other countries around the world. they got to use these dollars in this currency there getting from to start massive makework programs, if you will. there's infrastructure and all kinds of things you can do to put people back to work. i think that's really the only answer. the amazing thing to me is, i just looked at the south african rand, and i couldn't believe it. this april it has appreciated against the u.s. dollar by 10%. now, why is that? words, something's happened in country that was downgraded by moody's to junk

status. why is that happening? i think it's because people see a v-shaped recovery in these markets. annemarie: if we extrapolate that to emerging markets as well as develop arc it's, you mentioned a new deal type program, and we see something similar across the board. so many rate cuts are coming from emerging markets, central banks, and stimulus at the same time are seeing that developing as well. how do you cherry pick the opportunities where that's going to pay off and where it's going to come back and bite you? >> that's a good question. that's why we are emphasizing companies with strong balance sheets. a number of companies will not be around next year. they will have gone bankrupt. so we have to look at the survivors. and then we have to look to those companies that are going to benefit from these huge infrastructure spending we see coming down the road. mobius,hat was mark

talking about his expectations for the v-shaped recovery, extolling the virtues of the rebound in the rand. reopens in the prime minister urges a national review before his government lifts restrictions on domestic travel. we will discuss. this is bloomberg. ♪

manus: this is "daybreak: europe." the italian prime minister marks italy's national day with an appeal to citizens to work together to revive the country as his government prepares to lift restrictions on domestic travel.

meanwhile the central bank skewed ss -- asset person, underscoring institutions in the face of the coronavirus outbreak. joining us is our guest. thanks for joining us. we have a really important week for italy as they begin to reopen. as you can see, the ecb has really stepped into support italy on the monetary side. we know we will have this relief fund on the fiscal side. what does italy do with this money? right now it's going to be focused on trying to rebuild its economy. it was already stagnant before the epidemic broke out. to contractected between 10% and 12% this year. italy is really focused on trying to revamp its tourism industry and its manufacturing sector.

you, youod morning to also note the unemployment rate, but you also focus on youth unemployment at 33%. reignitinges to italy, where should the focus be to deliver these funds, these loans, these grants? should it be on that use side or to the more structurally challenged part, the middle-aged? youth unemployment has been the big issue for several years. as result of various labor reforms, they have contracts that have suffered significantly over the past few years. by revamping sectors including education, tourism to give a boost to use and different

places in the economy. annemarie: you noted that recent poll shows 67% of respondents feel that they feel disadvantage being part of the e.u., even the bear about to get these relief funds, this always becomes a big topic when we go into elections in italy. do you think that given the pressure on the economy we could see even more euro skepticism when it comes to italian politics? livia: absolutely. what we see is populism growing at the moment. over the past year, the right wing groups have increased in the polls and the centerleft coalition government, their approval rate has decreased. what we see is that they are likely to gain momentum. italy will have a difficult time

addressing the wealth inequality issues in the country. manus: you also make the point howt the disappointment in germany treated your nation at the start. i would say to you that that was a global, every country for themselves. ofshowed the true nature every man, woman, and child of the human race. i don't think it was just germany. but you make that point and you say that had delivered a searing blow to the allegiance between italy and germany. livia: absolutely. you have to keep in mind that taken in vast numbers of migrants, and the pandemic came. the immediate reaction was to erect borders, but some support

was coming from china instead of germany. there was a sense of disappointment in the e.u.'s ability to come in and help italy, which was one of the first countries that was hit by the pandemic. annemarie: italy recent -- recently promised to subsidize the purchase of new bicycles for citydwellers. what will be the reaction in germany to using funds for things like this? livia: i think the e.u. package is leaning toward trying to create an agenda. giveeal has said it will investments but they need to be tied to certain areas of reform. they would be able to get some sort of funding for it. i'm sure if they are italian bicycles, they will be

very stylish. well done, thank you very much for joining us. waitingp on the show, for the boats to charge and. capitalize, one the best bet on equity markets is growth versus value. this is bloomberg. ♪

manus: this is "daybreak: europe." aregreat debate, investors waiting patiently for value from

growth stocks to become completely bullish on equity markets. but there are signs that a sustainable recovery is on the horizon. as the markets rebound from march lows, some emerge. faring better than large caps. basis, value is outperforming growth. are you on board, are you part of this great rotation, or do you want to wait? inistophe: we are on board the since, as i said a half-hour europe could close the gap or reduce underperformance. by doing so, if we are correct, that willalue stocks

experience a rebound in prices. but it's a tactical view in the long run. it seems to make sense to be ,nvested in growth stocks especially with innovative companies. technically speaking and strategically speaking, we have two different pictures. thank you so much for joining us this morning. that does it for us. europe european open is up next. and tune into bloomberg radio on your mobile device. before regard break, look at these pictures of los angeles. there have been a number of curfews around the country, largely there have been a lot of peaceful protest, but we've seen

people break those curfews to protest. these are live pictures right now in los angeles. ♪

♪ anna: good morning. welcome to "bloomberg markets: the european open." today, markets stay focused hard on the positives from unrest in america to brexit impact and the stimulus delay here in germany. tus