♪ nejra: good morning from london. manus cranny is in dubai. these are today's top stories. new coronavirus infections soar with california and texas reporting their biggest daily jump. anthony county tells congress the surge is disturbing but expresses hope for a vaccine. the u.s. treasury secretary says another stimulus package could be passed in july. larry fink tells us the viruses

impact on small businesses is still unknown. boris johnson announces a dramatic lifting of lockdown measures imposed in england as the u.k.'s chief medical officer warns the virus will persist into 2021. it's just gone 6:00 a.m. in london, 7:00 a.m. in paris. this --he question is why is anthony fauci talking about a disturbing surge? are we preoccupied by the two magical words from steve mnuchin? we will exit the session at the end of the year, with 10% unemployment potentially. we are hanging our hats on the holy grail of hope, but the reality of real human hotspots in this covid crisis. nejra: yeah, absolutely. when you talk about the real human impact as well, yes, we look at the fact cases are surging in the transmission rate is actually above 1 according to

some estimates. the real human impact is on jobs as well. there are really questions over when that support comes away in autumn, what that means for the jobs picture, not just for the u.s. but elsewhere as well. manus: no, you are bang on the money. the other narrative is listen to manny roman's interview. he talks about being stunned by tech. two months ago, it was going to be there. you have the stimulus narrative and the magical words from the rbnz, now looking at a broader range of monetary tools. we are not done on that front. nejra: on that policy front, it was interesting that manny roman saw u.s. inflation will state for a long time before the fed raises rates. we are not getting a lot of impetus or direction today in terms of asian equities. perhaps a touch of risk appetite, but nothing to write home about. u.s. futures on the front foot

after we saw gains in the u.s. session yesterday. european futures in the red. seeing a little bit of divergence in terms of the futures. third day of dollar weakness which perhaps speak to some sort of cautious risk on coming through cross assets. the 10 year yield not doing a lot. oil on the back foot after some signals of increasing stockpiles again. manus: let's dig deeper into it. the coronavirus search across is puttingstates the reopening narrative and plans in doubt. new cases have soared in places like texas, arizona, california. they all broke its record, california broke its record for new cases for the fourth time in the past week. nejra: top u.s. health is puttig the reopening narrative and official anthony fauci noted a disturbing

surge in new cases and reopening states and says the next couple of weeks will be critical to address this. he told lawmakers that he was cautiously optimistic a vaccine will be ready by the end of the year. joining us for the hour is georgina taylor. great to have you with us. thanks for joining today. it is really interesting that we are seeing a reasonable amount of risk appetite across markets despite all the warning signs we have just talked about. how pro risk are you across your multi-asset portfolio as you weigh out the second half of the year and the risks of a second wave? georgina: good morning. thank you for having me. i think it is the dilemma we are all facing as investors right now. to look at the immediate in sense of the data coming through. mathematical,he constructive turning countries back on in terms of manufacturing data, data yesterday that was encouraging.

putting that against the longer-term implications of all of this to say, yes, this is a second wave, potentially what you spoke about coming up. but also but the long-term consequences are of all of this. portfolios, we want a new strategy to be honest. we can look across all different asset types and get into specific ideas and investment opportunities but that top level, very little direction exposure to equities. more to credit because there's a little bit of support their from the policy backdrop. things like the dollar. we do like the dollar but very specific pairings with emerging markets. perhaps that backdrop has changed a little bit. and then the appetite you are seeing in markets that perhaps some of the risk is increasing for the u.s. specifically

relative to the rest of the world. not wanting to run too much directional risk at the moment because the risk around the in demand picture will surge again perhaps later in the year. manus: good morning to you. let's begin -- we have a whole hour and we have lots of stra nds to discover. we will hear from manny roman in a moment. the nasdaq composite is up, record high. manny roman says, from pimco, this is nothing short of its ordinary. i need people to start to define what tech is. mega tech versus ordinary tech, versus health tech. where does tech play for you? georgina: tech, for us, really from that top level looking down . it is two things. firstly, it is playing into where demand has increased to a certain degree agreed a world where we find ourselves.

people are starting to be able to justify the valuations attached to these companies, but also start to potentially increase some of their growth expectations that affect overall. but it also affects is this, if we want to term it, the growth of valley debate also linking with the policy backdrop. you do get an extended period of very low interest rates. looking at the cash driven companies. looking at where you can have some degree of confidence in cash flows that companies are delivering in the future. i think that still, with a number of investors, resonates that the tech sector captures all of those themes. concernit is a bit of a because i think valuations have run away and i think everything being classed as a strong cash

flow, various elements of technology we have to think about. i think investors have to be far more specific. i think from a stock picking perspective, you have to be more selective and continue to have exposure. nejra: on the specificity of your portfolio, with the rebound we have had particularly in equities through april and may from the march low, and as we continue to see lockdowns easing and accelerating around the world through the month of june. what would you say are the most important ideas that you have changed in the portfolio in the month of june of assessing the advent -- evolution of covid? georgina: i think from a top-level perspective, we did a little bit before the increasing of exposure slightly to credit over equity. acknowledging that the risk environment did change a little bit.

holding onto an increasing a little bit on the risk on exposure through the credit markets made some sense to us. i think that top level of equity markets is almost paring equities to say who are the winners and losers within this global environment in which we find ourselves. adding a long position in australian equities, for example. relative to being cautious in summer like india. we are thinking that relative value across equity markets. manus: we are going to dig into that. i like how you said dividend trades and aussie and volatility in hong kong and inflation in regards to europe. georgina taylor, invesco asset management. i will get you up to speed with your first word news, because the u.k. will see a dramatic lifting of the lockdown measures in july. the goal is to save the economy. the risk is it causes a second

spike in infections. speaking at a news conference yesterday, prime minister boris johnson was clear, he took full responsibility for that i decision. officials warned the virus will be in the u.k. until 2021. the european union may choose to keep the door shut for americans as officials convene to assess easing control on the bloc's external borders. one criteria upper escutcheon is reciprocity. it would mean u.s. citizens are not allowed in because europeans are still barred from the u.s.. $2an is struggling to trillion of virus aid. fund's40% of the budget is for cash handouts that have not reached people, despite being approved in late april. only 14% have been let out to small businesses.

for job protection subsidies, it is even worse. that number comes in at 6%. global news 20 for hours a day on air at quicktake, powered by 2700 journalists and analysts in more than 120 countries. nejra? up,a: manus, coming treasury secretary steven mnuchin is still upbeat about an economic recovery. why he believes the u.s. will be out of its recession by year-end. we will find out next, manus. manus: day three of bloomberg invest. we've got more conversations at hand. carson block will be speaking out against the german regulator market, blaming it in large part for its rolse in the rise of wirecard which has seen a spectacular fall over the last few days. over $2 billion went missing. this is bloomberg. ♪

>> the u.s. had yield curve control during world war ii. exitafter the war, the from the yield curve control was very difficult, so it kind of ended in tiers. i think that is one of the main concerns of going this direction. i think there are more questions than answers right now. was st. louis fed president james bullard on the possibility of yield curve control by the central bank. u.s. treasury secretary steven mnuchin is finding an optimistic tone on the road to recovery. he believes the u.s. could be out of recession by year-end.

he told bloomberg a new stimulus package could come as early as next month. has mnuchin: the president been clear that we put a lot of money into the economy. we had an unprecedented response on a bipartisan basis in the last cares bill. there is no question that money is having a major impact on the economy. whether it is the ppe, which impacted 50 million workers, or whether it is the direct on,ments of over $160 milli these are all having an important part of protecting american workers and american business. i actually just left the republican senate lunch and we are beginning to discuss the different aspects of what another bill would look like. we want to take our time because, number one, there is money we still have not put out. number two, we want to make sure whatever it is we are doing going forward is much more targeted to the businesses that are most impacted. ing, you think it

is likely sometime in july, they build my passed both houses? sec. mnunchchin: that would be e timing. david: right now, would you say the legislation is working reasonably well? would you say the fed is doing as good a job as you would like them to do? they have a lending program that has not actually lent money. can you say whether the president is happier today with the head of the federal reserve? think thein: i federal reserve has done a phenomenal job. we speak to them almost on a daily basis. these programs are a combination of work of the federal reserve and the treasury. i think we have worked very well together. single one of these programs is up and running. we have a municipal bond program. we have a commercial paper program. we have a main program that is now up and running. we have a corporate primary and

secondary. we have a program that lent to banks and nonbanks for ppe loans. the fed acted in unprecedented response. yes, i think you have seen the president is very pleased with what the fed has been doing. david: in this quarter, we have slipped into a recession, according to the natural bureau of economic research which makes the official determinations. do you think by the end of this year, we might be out of a recession? sec. mnuchin: i do, but the traditional economic metrics given really appropriate we shut down the economy. first, let me say they were way too many people that lost their jobs and got laid off. again, we are not going to be done until we get every single one of those people back to work. so, i am not really focused on the technical issue of it is a recession or it's not a recession. i'm focused on helping all these small businesses and all the

workers. that's what our job -- i think you saw the recent employment numbers, people thought there would be another 8 million people unemployed. we put 2.5 million be able back to work. this is the ppe working. you saw great retail sales. i think you will see the economy had a very bad second quarter. i think you will see a spectacular rebound off the bottom in the third quarter. david: you are one of the principal negotiators with bob lighthizer on a deal with china. are you confident the chinese can honor the commitments to buy the products they agreed to from the u.s.? sec. mnuchin: i have every expectation that they will. they have continued to tell as they will, as recently as last week when secretary pompeo met with one of the senior people that flew in from china. they had a summit. so, i have that expectation that they will lead up -- live up to their obligation. i think thethat,

world wants a lot more transparency on covid. how did it start, how did it spread, how did it spread around the world and it didn't spread within china? we shouldn't confuse these two issues. yes, we have expectations that they will live up to their trade agreements, but we have expectations they hav in a lot more transparency around the disease. manus: u.s. treasury secretary steven mnuchin talking to david rubenstein. joining us this morning is georgina taylor. i look at your positioning. selective credit and high yield has been good to you. listening to the treasury secretary, long the fed, long stimulus. do you double up on credit here? georgina: i think it's a risk. i think that everything they are doing from a policy standpoint is pretty impressive really around the world.

i think what it potentially is missing is some of the structure balancing. a number of economies before the crisis even hit. one of those is looking at the strength of balance sheets and a lot of debt that has accumulated across the public sector, but the corporate sector as well. while we are quite happy with the credit exposure that we have, we are doing it in quite a selective and specific way in the portfolios. i think we would be reluctant to increase the assets we've had. secondly, it is a little concern that some of those balance sheets stresses do come back to haunt the market at some point and we've got to be very mindful of that. nejra: yeah, interesting. one thing that you say also in your fund summer is that long-term u.s. interest rates moved higher recently and that worked against your interest

rate yield compression idea. do you keep that yield compression idea in place in the u.s.? and do you combine it with an idea of curve steepening as well even though we heard from jim bullard that yield curve control might not work and what's the point of it if rates are going to stay low for such a long time in the market? georgina: i think the yield heme is really looking at the narrowing of the gap between u.s. interest rates and the rest of the world, more specifically looking at u.s. versus european rates. that is something that has played out over a multiyear period. there is no real reason why interest rates in the u.s. should be so much higher given some of the stresses in the u.s. as they were in other places around the world. one of those being low inflation for longer and maybe an anchoring of short-term interest rates. something we hold onto his a theme.

certainly less available within that idea right now given the compression of interest rates around the world, but i think given the move in u.s. interest rates you have had, i think there is still an opportunity to say that gap will still continue to reduce. georgina taylor from invesco asset management stays with us. coming up, boris johnson gives the green light for pubs in england to reopen next week, but scientists warned that the u.k. must prepare for a second wave. we will discuss next. this is bloomberg. ♪

betterl we have a understanding of the outcome of the 2020 election and we know what's going on, i think we

should expect a lot of volatility for the next year. but let's be clear, markets have done quite well with all this uncertainty. cashhere's a huge pile of sitting on the sidelines. that money needs to be put to work. nejra: that was blackrock chairman and ceo larry fink on market volatility. let's turn to the u.k. and boris johnson announced july will see a dramatic lifting of britain's lockdown. the uk's top scientists were clear about the risks. the chief medical officer warning the public to plan for the long haul on the expectation the pandemic will persist at least until this time next year. georgina taylor from invesco asset management still with us. you take warnings like that, the impacts we have seen other u.k. economy. bank of america merrill lynch sees sterling behaving like an emerging market currency and the deficit will surge as high as

10% of duca economic output next year. that is a fairly bearish output on the pound. how bearish are you on the pound? georgina: we started to get more bearish. it was a very difficult currency to add into a portfolio because it felt as though it was trading on headlines and that is very difficult when you are trying to be a longer-term investor. as we have the negative exposure to sterling very recently, not only do we have the immediate sense of how we feel we can come out of this covid related crisis. brexit is still looming in the background as well, cannot forget about that. given the deficit problem, given two big risks now for the u.k., we certainly are more cautious on sterling as it currency in the portfolio. manus: what does that do to your stock position? we put on the screen, u.k. equities underperforming in

dollar terms since the brexit. ubs has gone quite bullish. they say the discount in the valuation is what makes it attractive. lagged asian indices for the past four years. given your sterling view, the dividend store in the u.k., how does that play together? georgina: we do have some exposure to u.k. equities. when you run the dividend model approach, the valuation approach to the u.k., i think it certainly looks more attractive versus elsewhere. so overall, we are not too excited about it but the u.k. is one area we do have exposure. the dividend issue is a problem. so an evaluation has to factor in a cut to dividends over the next year or so and continue lower dividends that we continued in the past. weaker sterling is supportive of equity markets and that means they're not the same.

manus: georgina, thank you. the sterling tropical support equities. georgina taylor stays with us. up next, we will talk about inflows, outflows right here on bloomberg. ♪

manus: good morning from dubai. your top stories this morning. new coronavirus infections soar, with california and texas reporting their biggest daily jump. anthony fauci tells congress the surge is disturbing but expresses hope for a vaccine. the u.s. treasury secretary tells bloomberg another stimulus package can be passed in july.

blackrock tells us the virus's impact on small businesses is yet unknown. and boris johnson announces a dramatic lifting of lockdown measures imposed in england from july. this as the uk's chief medical officer warns the virus will persist into 2021. nejra: welcome to daybreak: asia europe. it is interesting, because you do see the warnings start to pile up both in the u.s. and in the u.k. and europe. we had better than expected pmi data, but the second wave does seem to be alive and well, and yet we still see risk assets fairly big. manus: nejra, it's about whether you believe -- for example, , the political pressure bringing economies back to birth rather than stagnation is a critical issue. i say it is about stimulus. the news from mnuchin shifted

the dial again. it was not a fed moment, but it was an incremental dial shift in the narrative, and that translates to markets. let's roll through them. the kiwi rolls over because vr rbnz that indicates they are ready to roll down in terms of broader measures. you've got nasdaq breaking records. then you've got the dollar rolling over, nothing short of extraordinary. but have a look at oil, gold, and 10 year government bonds, because you've got a nice narrative in terms of inventories rising. what do you want? do you want an inflation hedge? is gold and inflation edge? and your favorite, nara, 10 year ield up seven point -- up .72. the indicators of the pandemic spread include new cases.

california saw record levels of new cases for the fourth time in the past week. nejra: yeah, and manus, anthony surgenoted a "disturbing" in new cases in reopening states, and he said the next couple of weeks will be critical. with the risks of a second wave continuing to linger, when will the u.s. and global economy ounce back? here are our guests weighing in. >> the economy had a very bad second quarter. i think you are going to see a spectacular rebound off the bottom in the third quarter. >> we expect real gdp to come back to the 2019 level by the end of 2021. >> i do think the resiliency of our economy is such that we will power through this, but it is not going to be a classic v-shape. it is going to be more of a

u-shape recovery rather than a v-shaped recovery. >> we are seeing a lot of things rebound, and that is being taken as a sign that we are on the path to recovery. we are a long way off from that in the u.s. and even much more so in the developing world. >> we will not have a robust global recovery unless all the world is recovered. of our top was some guests from bloomberg invest, weighing in on when they can expect to see an economic recovery. after months of redemptions, hedge funds have finally seen inflows. clients added money for the first time since february since managers grapple with conditions. danny, what have you got? dani: investment added $1.7 billion, but that is peanuts compared to the outflows they have seen in the prior two

months. more than $24 billion pulled in march during the turbulent market. it is still a rough road ahead for hedge funds. we saw that in may. the ones that had the best our credit hedge funds and event driven headphones. example,t funds, for still some negative outflows in may. this just shows that you don't want to pay up, or investors don't really want to pay when markets look as rough as they have. barclays did a survey of their clients trying to assess what hedge fund flows will look like from there on out, and they think 100 billion dollars is going to be pulled from hedge funds for the for talladega -- for the totality of 2020. this is investors really turning away from the industry with so many wanting access to liquidity, so it is easy to pull money from these expensive managers. year-to-date, assets remain around $3 trillion for the entirety of the industry, but that is no different than what they had in 2014.

it has been really stagnant and shows what a struggle it has been. they have that $3 trillion eu m number and they say, look, this is no industry -- no way for an industry to grow and thrive. manus: dani burger there, going through the latest data. we have mentioned his name a couple times, the pimco bus, who says well the coronavirus pandemic -- while the coronavirus pandemic still poses many unknowns, there is still an opportunity to pick up underpriced assets. what are they? an expert on tech stock, but let's talk about credit for one second. i think you have seen an enormous amount of issuance in the credit space from the tinto of march 2 today -- from the end of march to today. if we bridge a liquidity gap,

then there is going to be a long cycle wherefrom we need to think about solvency and their own businesses and what they can achieve. if we know anything from history , we know it is a long cycle, a cycle where there will be somers done, and where sectors are going to be profoundly affected, and we need a restructuring. just think of the airline sector. when are we going to see each other in the flesh? i don't know if it is two weeks away or six months away. part of it is also the virus, of course, where your respective of how much work we have done in terms of understanding the risk and keeping people safe, there are also things we do not know. as you see cases taking up in 26 of the states in america, there is a lot of unknown. at the moment, you have the

fed buying everything and supporting the markets. what do you see the best return, given what you just said about credit? you said you were worried about that. out one: i would point thing, which i think is interesting. cycles,ook at the u.s. this is a long cycle, and the tolity to deploy capital restructure is actually the opportunity to deliver outsized returns next time. you don't have to hurry, but it is something that we are focusing on. if there are opportunities to buy cheap businesses and cheap of all theuse factors that were just mentioned, and the ability to put them in the correct

structure with the correct liquidity, i think the industry will deliver outsized returns. you have seen that for the first time, i would say, in the crisis in 1991, and you saw it again in the asian crisis in 1997-98, and you saw that inditex and telco .nwinding in 2001 and 2002 and you saw, obviously, a lot 2009. hopefully pimco will thrive out of this market and find plenty of opportunities to invest. >> pimco is one of the famous winners from what happened in 2008 and 2009. is there a particular area you think will work for you like it did then? is that something you want to focus on this time? emmanuel: i think we bowed very well. -- bode very well.

i think one has to be incredibly humble in terms of where we go forward. but i think that there will be plenty of opportunity in the sectors i mentioned, which are a big challenge to buy cheap assets, and also, for most of what we do, to of risky sectors -- avoid risky sectors and actually be defensive in terms of making sure we don't own any things that break. but there are sectors that are quite positive. for example, the housing market is in pretty good shape. the whole mortgage market, if it provides opportunity, is actually pretty steady. we think housing in the u.s. does not have enough supply and that house prices, give or take, are reasonably stable given what we know. that's the pimco ceo speaking exclusively to bloomberg as part of the invest global summit. our guest host is georgina taylor from asset manager.

we have seen the market get over the liquidity gap. got a solvency gap. don't buy things that break. do you like mortgage backed securities? do you like the housing market? what is it you liking credit space that has bridged the liquidity gap? georgina: i think the housing market is an interesting area. we don't do mortgage backed securities specifically, but even looking at stocks that are related to that sector, we search had some exposure to that, and it felt inconsistent with the more cautious economic outlook. thethis is not about housing market this time around. was in much better shape previously. it certainly will echo that. to avoid arereas always as important as the areas to have exposure to, and somewhere like insurance, for

us, is a bit of a risk. some of those credit risks have increased for that sector. on top of that, you have the recent crisis, which does lend itself to thinking more cautiously about the outlook for the insurance segment. it would echo those words on what you have exposure to right now. when: it's interesting, you take together a lot of the comments we have heard today, ,ow rates for a long time comments that the signaling is more important than the amount the fed actually buys in terms of risks like credit, and larry fink saying you are going to have a lot of volatility over the next year, but there was a lot of cash on the sideline. that leads me to think that investors might say, let's put money into both u.s. credit and wes equities -- u.s. equities. because it is such a popular trade, do you have any more ease

of terror trades in the u.s. that you would like to capitalize on -- piece of esoteric trades in the u.s. that you would like to capitalize on? georgina: it skews the opportunity, and all of us who are more cautious from an economic standpoint have to remind ourselves that this low interest rate environment is investor behavior is an important driver right now. even though absolute yielding credit may not look high relative to history, you can see how that could continue to gain momentum as people look for a relative yield advantage. forink i would see support credit, and that is why we have had some exposure. think the balance sheet issue can play out in a more nuanced way. we are exposed to a basket of companies that have strong balance sheets relative to the small-cap sector, which does risky from a credit

risk perspective. interesting. georgina taylor stays with us. here is what we've got coming up for you today, or the events you should be looking out for. this week, we get the evo survey , one of the best indicators of economic growth in germany. this afternoon, the imf will publish its world economic outlook. they estimate at the global economy would shrink by 3% this year, manus. the day for commercial tenants in the u.k. to play the quarterly rent. all day, we are covering the bloomberg invest summit, the biggest names across finance, economics, and investing. coming up on the show, eu

nations plan to ease their travel ban. could the door space shot to americans? more on the story. ♪

>> i think there is a real danger of confusing rebound with recovery, that we are seeing a lot of things rebound and that is taken as a sign that we are on the path to recovery. i think true recovery means you are at least as well-off as you were before the crisis started. i think we are a long way off

that in the u.s. nejra: that was the world bank vice president and chief economist. it's interesting that she makes a distinction between rebound and recovery, because we saw a rebound in european pmi yesterday but still in contractionary territory. speaking of europe, rebound or recovery, whether to open the door to americans will be one of the topics of debate today as diplomats from the eu countries discuss the travel ban. one topic up for discussion is reciprocity, which would see barred. the closely watched german ifo survey out at 9:00 a.m. we will speak to the evo institute president shortly after that. let's get more thoughts from georgina. if we pick up on that thought of what we are seeing in europe, it is simply a brief rebound or an actual recovery.

my eye was drawn to one of the changes you made in the portfolio in that you removed your short europe inflation idea. what is the thinking behind that? we are still quite cautious on europe overall. i thick the market has fallen such a long way -- i think the market has fallen such a long way. it was headed toward zero at the point of the crisis earlier in the year. it got to point to and is now up to 5.6.2 and is now up it is not a positive outlook, but the u.k. has very high inflation expert tatian's priced in test expectations priced in. -- expectations priced in. we think that is a better opportunity. on thegreat hope rides potential stingless to come. could that -- stimulus to come.

could that change the inflation narrative, or is that something in the meantime, i'm not convinced that the stimulus program defies the narrative of european assets? georgina: i think it is a huge support initially. they managed to form an agreement and that probably did feed into our view to take off the short inflation view, because shorter-term, you can see how people might believe that it would start to get some sort of inflation in the system. but i think that still comes down to the structure of the economy, demand versus supply dynamic. for us, we still remain in a very low inflation, even risking heading into deflation again at some point in europe, just because of the disconnect across the different countries and whether the stimulus gets to the right areas and ultimately how much that debt burden is going forward.

manus: georgina taylor staying with us. we've got a little bit more work to do on the markets. re-thinked.talism is going to take a beating if financial markets continue to behave in way they have been acting. we discuss. this is bloomberg. ♪

a globally integrated economy, and we should remember it was emerging markets that help to bring us out of the 2008 crisis. we will not have a robust global recovery unless all the world is

recovered, and that includes the emerging markets. stiglitz,t was joseph economist at columbia university, discussing his outlook for the economy as part of the bloomberg best forum. stiglitz warned that the global economy faces a bleak future in which capitalism could take a beating, unless governments get their policy responses just right. it is predicted that the recovery will soon fiddle out and be more anemic than the ones that followed the global financial met them -- global financial meltdown. -- georgina taylor is with us. i want to focus in on the emerging-market aspect of it. yesterday i was doing the bloomberg invest summit and it was something like 5000% worth of rate cuts have gone through in e.m. where are we on that journey?

you have a view on some of the eem currencies, the dollar versus the brazilian real, just to name one of them. georgina: it is interesting, and i think the tolerance for weaker currencies across emerging markets has perhaps increased because policymakers understand that might have to be part of the solution, and it is a trade-off in the sense that their policy response versus what growth and inflation dynamic they achieve longer-term. for our dollar exposure, we are much happier doing that versus selling some specific emerging-market currency. brazil, as you mentioned. she lay. -- chile. looking at china, looking across the board. the difference is in the policy responses and how effective they will be. even new zealand, which is not an emerging market, but opening the door to policy response, that's another currency we have been selling for a while to say those have not quite gotten

there yet. they are going to play catch up with the rest of the world, and that will play out. the other area that is interesting is volatility. we are lucky enough to buy volatility directly and buy volatility on asian equities across emerging markets. it reflects some of the views the other guests have laid out. nejra: in a couple of words, is it a rebound or a recovery that we are looking at globally? georgina: i think it is a rebound in the data. the recovery is still so uncertain. we need more evidence whether that is generally underway. nejra: thank you so much for joining us. georgina taylor, great to have you with us. that's it for "bloomberg daybreak: europe." the european open is up next. we are seeing divergence in terms of u.s. and european futures. u.s. futures were in the green, giving up their gains now, but

european futures were in the red, manus. manus: it is about the endurance job, whether that carries through. ♪

>> good morning. welcome to the european open. i'm anna edwards, live in london. here are your top headlines. round two. virus cases surge around the united states. the eu could bar americans from entry when external barriers reopen.