nejra: good morning london. this is "bloomberg daybreak: europe." china's economy returns to growth. consumer demand weaker than expected. stocks fall as president trump leans against further sanctions on beijing for now. a group of world leaders call for solidarity on the coronavirus as second waves spread. the ecb set to keep stimulus steady today as the crisis persists.

twitter shares fall after hours on an unprecedented hack on the accounts of prominent u.s. figures, including elon musk and bill gate. jack dorsey called it a tough day. welcome. it may have been a tough day for twitter, but it is also shaping up to be a tough week for tech stocks in general. the nasdaq leadership we have seen falling back a little bit this week. nonetheless, we did see a little bit of strength come through on the s&p 500. today, we are seeing a little bit more risk off sentiment across assets. perhaps to do with concerns around the china data, particularly around the retail sales question. asia, the screen and particularly in chinese equities. the 10-year yield is steady. you are seeing the dollar steady after a couple days of weakness. also perhaps the fact that we are seeing a little bit of softness in crude.

it did close that a four-month high yesterday, shrugging off plans by opec-plus to taper production curves. let's get to the first word news now. coronavirus cases continue to surge in the u.s., with california reporting near record cases and fatalities. the world's biggest retailer is to require customers to wear masks at its stores. costco,joins starbucks, and best buy in the move. the governor of the bank of england has told conservative lawmakers, u.k. interest rates are likely to stay low for a long time. according to people present at the meeting, he said the bank will do everything they can to support the economy. separately, a survey by the british chambers of commerce set almost a third of businesses in the u.k. expect to cut jobs in the next three months. fewer than one in eight said they plan to increase their

workforce. twitter shares fell after some of america's most prominent figures had their accounts hacked. bill gates, elon musk, and warren buffett were among those who appeared to send almost identical tweets about bitcoin. says most should now be working again. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. let's get back to our top story. china's economy returned to growth at 3.2% year-over-year, reversing a plunge in the first quarter and beating the median estimate. that activity and consumption data for the world's second-largest economy came in weaker with retail sales unexpectedly contracting in june. sources say president trump has indicated he doesn't want to further escalate tensions with the beijing and has ruled out additional sanctions for now.

fromng us as guest host blackrock, great to have you with us. good news that the chinese economy has returned to growth. the focus seems to be on the weakness in retail sales and another consumption versus the industrial side of the economy. does this mean authorities will have to be less conservative with stimulus year? -- here? >> what we have seen so far is that pboc for example has signaled intention to perhaps be less pro-easing than before. but not all central banks have the luxury of being able to move both sides. if you think about right now, creating a tenure really interesting opportunity. it is true that the consumption piece of the recovery is lagging behind of the industrial production and manufacturing,

but that is not surprising in that there is a bit of a psychological effect at play here. this corroborates the big data from china, as well. weekday traffic is back to pre-covid levels. weekend traffic is still very muted. it goes to show that even one people can, they choose not to because they are rather conservative in the face of the reopening, which is what makes it more sustainable. we favor china assets, china bonds, because the country is further ahead in containing the virus in the pandemic curve and at the same time, the authorities, central banks and governments alike, seem to have more bullets in their pockets. nejra: makes sense. at blackrock, you favor chinese bonds and equities. the csi 300 weaker today. it is heading for its first three-day loss since may. we could say that is perhaps evidence that the recent exuberance in chinese stocks is

fading. what kind of sense do you get from investors around chinese assets? in particular equities. wei: actually, flows are starting to finally start coming. example,ly basis for last week was the strongest in emerging markets so far this year. led by inflows into chinese equities. there was a lot of that coming from domestic investors, but part of it is also coming from international investors and it would appear that as the equity market continues to do quite painful becomes more for international investors not to hold chinese assets, china bonds, and china equities alike in this increasingly bifurcated words. we have to hold both.

in this increasing awareness by virtual standing still with providers increasingly embracing chinese assets, this underweight is beginning to hurt and we start to see flows coming back. on a day-to-day basis, we will have fluctuations, but the trend seems to be that it is coming back from significant positions. nejra: yes. it is interesting that the flows are coming back now just as we start to see an intensification of tensions between the u.s. and china. what is investors' thinking around that? are they much more focused around china's recovery from the pandemic and putting concerns around tensions to decide to mark or do they think that even if tensions accelerate, it is not going to have much of a negative impact on chinese assets? wei: i think geopolitical concern, especially as we head

into the election where the major reasons holding investors back from investing in chinese assets so far this year, where some of the about escalation in recent days it seems to be louder in rhetoric than substance, then the actual substance. we are getting some indications from the u.s. that there is not a huge amount of willingness to further escalate from here. i think that is giving investors some comfort. intono mistake, as we head november elections in the u.s., being harsh on china on the rhetoric front will be likely a bipartisan push. we will continue to see greater focus around what gets said by whom. we also focused on the fact that

the chinese economy is somewhat shielded. nejra: wei li from blackrock stays with us. the philadelphia fed is revising its growth forecast given the resurgence of the virus in hotspots. still, green shoots are showing in the latest manufacturing and labor data. he gave us his outlook on the recovery. take a listen. the manufacturing sector has bounced back. we saw the last report last month. we are seeing some good news. itself, of philadelphia i'm concerned not just about the large medical situations, which have lost a lot of revenue and with elect -- elective procedures being curtailed or delayed, but also in the rural communities here, though systems have been hurt quite badly through this process. >> what about the overall u.s. economy?

revising your economic forecast or your outlook? >> prior to this, we saw a pretty big hit to gdp in the first half. we thought it would bounce back. unemployment around 10%. we are revising it right now because with the virus surging in the south and southwest of the country, we are concerned about that, i'm very concerned about that, so this is going to be a very slow recovery. until we get the virus under control, we can't get the economy back to full throttle. >> you came up as an educator. how important is it to get the schools open? how important to the economy this fall? >> it is very important, but we have to do it carefully. we don't want to put people at risk. in child for example,

care business, about half the childcare institutions, many of them are small companies taking care of children. about half of them closed. capacity.about 50% find care fort their children or be able to get their children to school, they are going to have a hard time working, particularly in a about their children, it is human nature they will be less productive. but we can't do it in a way that puts the children our communities at risk get -- risk. >> are you concerned about the level of stocks at this point and whether or not it is sustainable or we might be seeing a bubble that took the economy with it? >> the stock market is a measure we look at.

i have to remind myself that it is not the real economy. >> do you think there is any role for the fed and perhaps controlling the rise of equities at this point. >> at this point, we had to act early and aggressively to help stem the damage from this unprecedented pandemic and we did that. that was job one. as we start to climb out of this hopefully sooner rather than later, we will address other issues. we had to act to save as much of the economic infrastructure as we could. >> what more could the fed do? there was a suggestion that you let the economy run hot for a while and explicitly say let inflation rise. is that strategy on the table? >> we have been saying that the

2% inflation goal is symmetric, which means we should overshoot it. we are having a difficult time doing it like all developed economies. i'm supportive of letting inflation get above 2% before we take any action with regard to the fed funds rate. nejra: that was philadelphia fed president patrick harker. coming up, world leaders call for global solidarity amid the coronavirus pandemic as global cases top 13.5 million. this is bloomberg. ♪

is "bloomberg daybreak: europe." turning to coronavirus and global infections continuing to surge, topping 13.5 million, tokyo has joined australia's

second-biggest state victoria in hosting a record number of infections. los angeles has seen record number of inflations. texas posted 11,000 new cases, also a record8 world leaders issued a call for global solidarity. wei li from blackrock is still with us. we certainly saw quite a bit of risk in coming through in the hopes of the modernity vaccine. -- moderna vaccine. when you look at the appetite investors have had for risk assets, it looks as though there hasn't been -- has been a big favoring for fixed income in june. has that been in credit on the assumption that central-bank support is going to be around for a while? wei: absolutely. it makes the et g flows globally

a record month in june and this is coming on the back of central-bank support, so if you think about the fed likely going to stay close to zero for an extended period of time, three years or maybe even longer, that is really taking away income. leaving aally scramble and that is very much supporting credit, which is why we continue to keep our overweight in credit, including investment-grade and including a high-yield because we expect the search for income to continue to intensify. yes.: what is interesting as well if you look at the stock market in the u.s., we had a few weeks of nasdaq out performers, out performers of the stay-at-home trade. some showing worries that that trade was perhaps getting extended. this week, the nasdaq has underperformed. it is down so far this week while the s&p 500 has posted gains.

some say this shows investors are always going to find something to buy in the u.s. stock market in any economic circumstance convinced of fed largess. interpretation of investors you speak to? wei: we see nasdaq and tech related stocks giving back a little bit in a week that there have been vaccine development or positive news -- this is not surprising. you think about big tech names, they are the stay-at-home investment and they have outperformed when everybody is working from home, staying at home and if that process were to change, we could see a bit of a rotation. we do continue to believe that some of the structural trends are getting accelerated this year. teamg a secular investment , we continue to favor that.

they continue to come through with further substance and evidence than the cyclical rotation that we have started seeing coming through, so as an example of that, some of the value of exposures started turning around. seen flowso following them, as well. june into july. nejra: that is interesting about value inflows picking back up. is this a trend across global equities or has it been more concentrated in global equities? say the european equity block is a value piece in comparison with the composition of the u.s. equity markets, we started to see flows coming through in a big way, so just to contextualize that, we are still

out $30 billion of outflows from etf's and active exposures, giving exposures to european equities. the plan of turning around from significant outflow into tentative buying in june and coming into july into european equities, that is really unmistakable. we favor european assets at this juncture because the block is further ahead in the pandemic curve. they were more prudent both in lockdown and also in reopening. getting more details over the next couple days. favorably compares to the u.s. equities down very well so far already. we have upgraded european

equities. nejra: we will talk more about that in a moment when we talk about the ecb meeting. wei li from blackrock stays with us. shaping up to be a bumper quarter for big banks. morgan stanley and bank of america report earnings today. this is bloomberg. ♪ ♪

is "bloomberg daybreak: europe." let's take a look at the events today. quarterly oning a data-transfer. the decision could have major implications for thousands of companies. this afternoon, more u.s. bank earnings, today, morgan stanley

and bank of america. at 1:30 p.m. u.k. time, christine lagarde holds a virtual press conference. goldman sachs delivered its best trading results in years, joining the likes of jp morgan and citigroup in smashing estimates. discuss is dani burger. i mean, what a surprise for goldman. our good results going to keep rolling in today? dani: look, that is what we can definitely expect. someone like bank of america does have more exposure to the consumer, but jp morgan, the delinquencies were not as bad as we had expected. a lot of that has to do with the fed stimulus. the reason these banks continue to do so well, eight can be chalked up to the fed with their shock and awe. really helping banks. it really stands out from what the rest of corporate america is

going to. quotes we have heard is from a consultancy and capital markets, saying that they were so good, it is almost indecent. if we continue to see these fantastic results role in in large part thanks to credit training, it might say do they need to be doing more for main street, instead of helping out wall street? which they certainly have. pcb policymakers widely expected to keep -- ecb policymakers widely expected to keep holding steady on stimulus. exceeding buying seen 2 trillion euros this year and next. wei li from blackrock is still with us. we talked earlier about your preference for european equities over u.s. equities.

how much of that is dependent on action from the ecb versus the fiscal stimulus? of thethink in terms game changer for us to become a bit more policy bound on european side finally coming through. ecb has been ready on standby to rescue and has gone vague for a while now, but the final coordination between monetary policy and fiscal policy gets us excited. in terms of today's ecb meeting, nothing we are expecting. no change in policy and the cards, but we do pay attention to the press conference and see if they have adjusted their inflation outlook or growth outlook and, if so, maybe president lagarde will field questions about the german constitutional court ruling that seems to have been resolved at

this point. but this is not a big focus. the big focus will be the next couple days at the summit and what they come up in terms of the details of the recovery fund. nejra: absolutely. you are not expecting a huge amount from the ecb today. are you in the camp of investors that will say -- is definitelyhat in the cards. if you look at flows and ,ppetites for european credit that certainly seems to be what investors are expecting and there is no reason to rule that out, especially given how effective the policy had been in containing the widening out and making funding very affordable. i think that continuation is certainly in the cards. nejra: wei li from blackrock

stays with us. coming up, twitter hacked. .olitical and business leaders we bring you the details next. this is bloomberg. ♪

nejra: good morning from london. this is "bloomberg daybreak: europe." china's economy returns to growth, but consumer demand comes in weaker than expected. stocks fall even as president trump leans against further sanctions on beijing for now. a group of world leaders call for solidarity on the coronavirus as second waves spread in hotspots. the ecb set to keep stimulus steady today as the crisis persists. twitter shares fall after hours

on an unprecedented hack on the accounts of prominent u.s. figures, including elon musk and bill gates. ceo jack dorsey called that a tough day. welcome. we are seeing perhaps a little bit of a tough day in equity markets after some of the exuberance we saw yesterday around progress on the moderna vaccine. a little bit more risk off. yes, we are back to growth, but retail sales were we can speak to the weakness perhaps in consumption versus the industrial part of the economy, so around the screen and in many parts of the asian market, a bit of a callback for european futures. we saw the u.s. and europe and in the green yesterday. we have seen some nasdaq underperformance this week, as we have seen the risk in come back with prospects of a vaccine. the 10-year yield is pretty steady. the bloomberg dollar index also steady. it speaks to broader risk off across markets. the dollar getting a little bit

of steam to the upside rather than being flat. oil weakening after hitting a former high shrugging off the commitment from opec-plus to take her -- taper those production cuts. china's economy returns to growth year-over-year, reversing a 6.8% plunge in the first quarter. but activity and consumption data for the world's second-largest economy came in weaker with retail sales unexpectedly contracting in june. sources say president trump has indicated that he does not want to further escalate tensions with beijing and has ruled out additional sanctions on top officials for now. turning to the coronavirus and global infections continuing to surge, topping 13.5 million. tokyo has joined victoria, australia and posting a record number of infections. los angeles has seen record hospitalizations. texas posted almost 11,000 new

cases, almost a record. issued ald leaders call for global solidarity in issuing a vaccine that may be developed. a twitter hack has had prominent u.s. figures and political leaders. the accounts sent out tweets promising to double the money of anyone sending funds via bitcoin within 30 minutes. joining us with more details is our asia tech editor. great to have you with us. give us more details on how this story played out and how would it shares. it is quite interesting. none of the particular accounts -- they did not compromise themselves -- it is twitter zone systems. -- twitter's own systems. a social it was engineering attack by its own staff. they were successfully targeted

by the scammers. in terms of account security, it doesn't seem like -- elon musk or barack obama had bad security, it was twitter itself in this instance. nejra: what has been twitter's response? brute foras the most three action possible short of taking down the website, they blocked all verified accounts, so that include journalists such as myself. not the biggest issue in the world. but there are also official public service announcement accounts and newsgathering accounts. so if you were using twitter as your way of keeping track of the situation, you had no more reliable sources available because twitter took all verified accounts, blocked them essentially from posting anything until they tried to figure things out. they say they have isolated the issue and turned the accounts back on.

but there are deeper questions to be asked. security and the trust we put into verified accounts is being fundamentally undermined by this in a sense. absolutely. as you say, most verified accounts can resume tweeting. thank you so much for joining us. as dubai begins to restart its economy, the country is holding its first major in person conference since the coronavirus pandemic. my coanchor manus cranny is speaking to the chairman and founder of email properties. let's take a listen. you are cautious in terms of a warning. we shouldn't squander the

progress we've made. there are risks out there. we have made progress, but there is a warning in terms of don't squander what we have achieved. >> i think to be honest be few like many rate leaders in this room, a month ago we started planning for the possible september-october lockdown because there is nothing guaranteed. what we learn from this unfortunate, scary event that there is nothing guaranteed. i have to hop to my office in serbia two weeks ago and nobody doing anything, they lived a normal life, now they have issues over there. it is still safe, but things are not guaranteed, things do change quickly. we are moving forward and we are very optimistic. government has done an unbelievable job.

i want to thank you and everyone else involved in the government, just unbelievable what happened in this country. we want to keep that and guard that. we don't want to go back to those, i call them dark days and nights. running big businesses like all of you and like myself, i think we probably had muscle pain, stomach pain for a whole two months. we did not know where this thing is going. i don't care how brilliant you are, this is an attack on humanity. i hope we learn. as you say, we take the precautionary measures. i know that earlier you had said you expect normality to return. do you still think normality will return? by the middle of next year or are you more optimistic? >> i think most of us who really believe in science -- a lot of people are putting a lot of

emphasis on the scientists working all over the place -- i think i'm more optimistic than some of my friends science will come and save us. but we are learning, we are becoming better human beings. --are protecting the selves ourselves and the world. yearnk yes, i think next -- crannymy coanchor manus onstage speaking to the chairman and founder of ema. we will keep you up-to-date on the latest out of the conference from to buy. let's get to breaking news. we had a red headline crossed that second-quarter net income came in at 120.8 billion taiwanese dollars. the second gross margin coming in at 53%. what you want to take away from

this is that tsmc's profit has been a beat as the coronavirus has driven demand for data center shift. it has underscored how its technological lead and helping the chipmaker, whether the covid-19 pandemic as well as u.s. curbs its number two customer huawei. it is a critically important link in the global supply chain that had previously lowered its 2020 revenue outlook to reflect potentially the biggest economic crisis we have all been talking about since the great depression , but it did say it still expects robust demand for semiconductors and data centers hosting a surge of online activity during the pandemic. that has kinda borne out in the numbers that we are bringing to you today. .hat is what we have for tsmc a beat on the net income. then also we have numbers coming through for another company.

first coder numbers down 47%. the estimate was for a drop of 43%. a little bit worse than expected. first quarter sales, 1.9 9 billion euros. richemont saying that double-digit sales decline is across all regions. , monetary policy expected to remain loose enough to continue to drive loose assets -- risk assets higher. he says it is best to stay long. he said we will continue to see lots of loan loss provisions for the rest of the year. think it will ultimately set, ame sort of severe surge in defaults. i like to remind people that the

strongest economic expansion in 1933 ands between 1936. again, we never recovered back to the levels of 1929, then ultimately there was a second setback that resulted in what we call the great depression. artificial stimulus being created by the government by monetary policy, in the near term it is lifting asset prices, but when you look at main street, unit that small business is, these are where the majority of americans' jobs reside. the real economy is not improving at a pace that would cashrt continuation or flow growth which could support these companies. so whether that is tomorrow that the chickens come home to roost or whether it is three years from now, the day of reckoning

will come. is thatmoment, my bet monetary policy will remain loose enough to continue to drive risk assets higher. it is probably for people looking to maximize returns, probably the best thing to remain long. >> when it comes to the real economy and preparing for that wave of default, we heard from banks who have set aside a combined $28 billion. i want to get your read on these provisions. are these carefully considered amounts? or are they stabs in the dark about what the potential damage could be? >> i think they are stabs in the dark. it is really interesting. at the end of the first quarter, when we had pretty good visibility at the end of march into how severe the downturn was, the banks did not take very high reserves that all. reserves, ae taking

lot of reserves, it tells me we are actually behind the curve and they are in a game of catch up. i don't think the reserving that occurred in the second quarter is adequate in terms of what ultimately will be needed. i think we will probably continue to see lots of loan loss reserve provisions going forward for the rest of the year. >> we may surpass the number seen in the great financial crisis. on the flipside, we have seen the trading operations that have done well, including goldman sachs today. one analyst called it almost indecent and could create a political backlash. >> i think in this environment that is a very real risk. the banks have targets on their backs from the financial crisis. they are constantly being identified as the winners every time we have a bailout, so easy

monetary policy, the bond purchase program which has stimulated a huge amount of bonds is issue and buy resulting in extraordinary trading profits. large pockets and these financial institutions are a target, especially by certain members of the congress, the more liberal members. so i think the reality is that there is going to be a backlash for the banks and especially if there is a democratic administration that comes to power. that was the guggenheim global ceo scott minerd speaking exclusively to bloomberg. this is bloomberg. ♪

nejra: this is "bloomberg daybreak: europe." despite a roller coaster for equity markets, the majority of family offices say they have performed in-line with or above target benchmarks according to ubs in the first annual report of family offices. familyort focused on 121 offices. for more insight, the head of global family office at ubs joints me now. great to have you on the show. really interesting report. thank you for bringing it to us. when you looked at the beginning of 2020, you sort of looked at the view of family offices then and then since then. i'm wondering what the family offices that you surveyed did

during march, april, and may. there was a rebalancing in portfolios. can you characterize that for us? >> thank you for having me. they kept their strategic asset allocation. they kept their temper. in a cold-blooded way, they did a rebalancing of extraordinary proportion. when markets were falling, many sold. many of our clients bought. they used their dry powder. they reduced cash balances at the time. they asked us for credit, for loans. so we got requests of multibillion dollars of bank loans, which they reinvested in public equities, mainly u.s. equities. so they made a lot of money in the process. that is why many of them are above in march year to date above the beginning of the year. and only a few lost money. nejra: yes, and it is really

interesting because you talk in the report about the fact that family offices were more worried about missing an opportunity rather than making a loss. they were quite active tactically, but there were two different ways in which the tactical activity played out. tell us about that. was that, one outcome they rebalance to their portfolio in a very, very professional way. reduced their appetite for private, so they reduced their private equity allocations in a significant way because opportunities in the public market were far superior during the covid crisis than before. yet we see a reversion to the mean in private equities, so we expect significant investment in private equity in q4 and q1 of 2021. ofra: now, at the beginning

2020, before the market volatility of march, family offices soto had their portfolios split, according to your report, between growth sensitive and wealth preservation assets. how much has that shifted now? josef: it has slightly shifted. what we have seen is that there is soft line into real estate, hard assets into more stable assets. we have also seen some gold buying was ongoing. we have seen that some cash levels are going up as well. that is also mainly driven due to the assumption that there may be more volatility coming and many of our family offices want to have dry powder to reinvest. you expectwhere do them to reinvested that dry powder? josef: if you assume that we have massive rebalancing in march, then you can assume that many are sitting on massive gains right now in july. so, there may be a negative rebalancing, so to speak

ongoing. there may be some selling pressure by large investors. highly we see is a volatile market going on. going forward for the next couple of months. however, that may be mitigated by the fact that democrats and republicans will do massive public stimulus to get their candidates reelected, so to speak. so there is no way around equity. while we see volatility, equities are going forward. nejra: ok, equities debt rigor going forward. what about developed versus emerging markets? josef: we have seen a massive rebalance also in asia, in hong kong, which is trading back at record levels. but we see however is that liquidity is king these days. when covid really hit hard, when the market was really volatile,

the price for liquidity was going up massively. what we will see is that many of our investors with fixed to develop equity markets simply because of liquidity, they want to get out when they want. nejra: right. that makes sense. what about fixed income? during the start of the year, that was relatively low. has that increased with the liquidity for example from the fed and other central banks, particularly around credit? josef: never fight against the fed. those who follow that advice made a lot of money in fixed income. during the crisis, even high-grade bonds and high-grade bond portfolios were discounted heavily. bids on -10%, -15% super high-grade bonds. those spreads have disappeared and the high yields market has would've recovered. so there you could make a lot of money.

getting outrally is of steam, that is a question, but it was a great way to make money in the past. nejra: are you getting any senses of longer-term shifts in the views or sentiments of family offices? i'm thinking more of the long-term impact of the pandemic in the way we do business, global supply chains, and all the impact of that might have on investing, whether it is more appetite for sustainable investment, more appetite for tech, or any other trends like that. does any of that coming through in the investors you speak to? what we see his expectations for private equity have fallen in light of the economic dislocation. we see many looking at potential dislocation in the real economy for investment. then we see a flight into real estate that is not only because real estate has a real asset

qualities, but real estate is also an elegant conduit to transfer assets from one to the next generation. then you see obviously a return to the mean, a reversal to the mean of private equity investment. when we saw before that allocations to private equity and private markets had increased steadily at the expense of public and liquid, which was only interrupted by trend intoow back in private equity sustainability. on the sustainability side, one piece of caution -- everybody talks about impact investing. however, we should also note that sustainable investing is an area that is full of different terminologies and their definitions and complex ratings, so what our clients do was what they do best. witches they exclude. they know what they don't want to invest in. so they exclude. if you exclude, you may forgo

financial returns. that is a real challenge. that is the one, single most important challenge for family offices. doing good well-being sustainable, they also want to make money. nejra: a pleasure to have you with us. we run out of time. head of global family office at ubs global wealth management. great to have you with us on the show today. in terms of how markets are shaping up, we are seeing a bit of risk off after the risk in we saw yesterday on vaccine optimism. a little bit of pull back across asian equities, u.s., and european futures. did have the data out of china. back to growth. the question is over the consumer side versus the industrial. we have breaking numbers from tsmc, as well. basically profit, posting its biggest profit beat in six years. we saw that on the second quarter net income. the second quarter gross margin. 53%.

really what this showed was the resilience of the business how itscovid and technological lead has helped it whether the pandemic, as well as the u.s. curves on the number two customer huawei. corporate profits exceeded analyst estimates by the widest margin in six years and that is the key line coming out of tsmc in terms of that. yes, markets a little bit more risk off in terms of today's session. we look ahead to the ecb meeting today. not much expected today, but investors do seem to be positioning. we heard that from blackrock earlier as well. have some numbers from richemont. sales coming in worse than expected. lots for investors to digest. the european open is up next. interesting to see if in the u.s., the nasdaq under performance continues this is

bloomberg. ♪

anna: good morning. welcome to "bloomberg markets: european open," i'm anna edwards. the cash trade is just an hour away. a group of world leaders called for solidarity on the coronavirus as localized outbreaks spread from tokyo to texas. china's economy returns to texas in the second quarter, but consumer demand comes in weaker than expected. the ecb said to keep stimulus