♪ nejra: good morning from london. this is bloomberg daybreak: europe and these are the days top stories. a mixed stocks amid doubts of the timing of fresh u.s. stimulus. it comes as president from hold his first virus briefing in months and tells americans to wear a mask. silver jumps to the highest in almost seven years and gold rises towards a record amid uncertainty over the recovery. citigroup recommends etf's for exposure to bullion.

the elon musk's qualifies for a package as tesla's average market valley reaches a milestone. the big test comes today as the electric car maker reports. welcome to daybreak europe. we are seeing a little bit of a mixed picture in the a's ingestion, perhaps slightly slower for asia index. we have some breaking news coming through just now. akzonobel saying covid-19 will continue to impact the second half of 2020. it also says that headwinds related to covid-19 eased during the quarter, so that is a quarter they are reporting on in terms of the second quarter. saying that results showing a strong focus trying to get through the rest of the line on that headline. basically in terms of the quarter we are reporting for the second quarter, covid-19 eased headwinds related to covid-19

eased but it will continue to impact the second half of 2020. akzonobel saying it suspended its 2020 financial ambition due to the pandemic. that is the guidance coming through from akzonobel. coming up, we will speak to the ceo. that is shortly after 7:30 a.m. u.k. time. let's get to the markets. we are seeing a little bit of red come through the headline level on the msci asia-pacific index. u.s. futures with no direction at all. we did see the nasdaq and the red yesterday after hitting a record the previous record. we did see a little bit for the s&p 500 yesterday but there seems to be a little bit of risk off concern coming through over questions of the timing when the u.s. stimulus package will be passed. that is as president trump's coronavirus comments, saying it will get worse than better perhaps causing a concern. pullback after gains yesterday following the deal on the eu

recovery fund. the dollar weekend for a fourth session. it is actually breaking a decade-long uptrend. the euro hitting an 18 month high in yesterday's session but do you agree with mizuho who says it has become a more credible safe haven and it could over the next 12 months get to a 1.30 handle. demand for safe havens puts a rocket on the silver and gold. silver at a seven-year high and gold nearing a record. stocks trading mixed and uncertainty over the timing of fresh u.s. stimulus programs. senate majority leader mitch mcconnell cold water on avenue rescue plan could be reached before some benefits expire. president trump has rebooted his briefings with a warning the outbreak will likely get worse before it gets better. pres. trump: we are asking everybody that when you are not able to socially distance, wear a mask. get a mask. whether you like the mask or

not, they have an impact. they will have an effect and we need everything we can get. nejra: joining us now for more is annmarie hordern. great to have you with us. a notably more reserved tone from the president. what exactly did he say and what was the change? annmarie: good morning. taking definitely more of a reserved tone giving his briefing. a lot less time then usually during the height of the pandemic. now we see cases really ravaging the u.s. in places in the south and the west of the u.s. he is restarting these briefings. he says it is going to get worse before it gets better. he also said if you cannot socially distance, put on a mask. this is something that has become very political in the united states. in part, because president donald trump said he didn't want to wear a mask early on. i have to say, it is not just in the u.s. on this side of the atlantic, i

got really accustomed to not being able to go into any shop at all in new york when i was there for four months without having a mask. even going running in central park and along the streets, you saw people wearing masks. a different picture in london, but that is going to be changing this friday when it becomes mandatory to go into any sort of grocery store. nejra: on the stimulus as well, it seems unlikely that a new plan will be reached before some of the current benefits expire. so, talk us through exactly what the situation looks like at the moment, but also in terms of what is delaying the bill. is all about the potential cuts to the payroll tax? annmarie: the first thing is that the gop really needs to get their house in order before they start these debates in earnest with the democrats. broadly speaking, the republicans favor extending some of the stimulus benefits, some of the stimulus benefits to jobless like the $600 checks that are set to expire at the end of the month. some republicans say they don't

incentivize people to get back to work. maybe $600, you do $300. they want to put money there. they agree more money for testing, but there are some republicans that are skeptical about the payroll tax cut. this is something president trump says he would potentially veto a bill if the payroll tax cut was not included. that is going to be something that the republicans need to get on page with the white house before they start debating the democrats. while steven mnuchin and mark meadows, the white house chief of staff, said a deal could be made by the end of next week, mitch mcconnell laughed out loud. it is not seen this will get done in the next 14 days. nejra: annmarie hordern, thank you so much. joining us for the hour is peter, global macro strategist at rbc capital markets. great to have you with us. shakeup so the markets, let's say specifically to the dollar and equity

markets, could we see as we continue to see delays to the u.s. stimulus discussions? the u.s. is not the only place in the world that is headed towards a fiscal cliff edge. peter: one of the key things that we really have to get our head around is the labor market is obviously in a relatively precarious state than most of the economies. currently, that support is petering out. in my mind, that is the crucial thing. if you don't get any follow on thatrt, the risk is these people recipient of these checks, $600 or i watered-down version of it later -- if they get nothing, what you get is a massive drop off in consumption. that is the most likely outcome. therefore, i think a risk is that. if that is the case, if we didn't get anything at all, i think the market will be addressed because the expectation of the economy will be addressed. let's see what these guys get

together in a relatively short time. that poses, so some risk to the equity market. what about the dollar? could we see it significantly roll over? it has already broken a decade-long uptrend. peter: it's obviously not as simple as just looking at the potential fiscal stimulus. there is quite of range coming, two sidesly there's of the ledger. you mentioned the earlier euro earlier. broadly speaking, i think the risks to the dollar is that. there is no agreement. what we do know is the equity isket, typically there safety in the dollar. we do think there's a very decent chance an agreement can

be reached. let us not speculate around what would happen if there wasn't. nejra: yeah, so that is the fiscal side of things. obviously, the fed is in the silent period so perhaps not something the market will be fixated on, at least until the 28 to 29th of july. i was reading commentary this morning that said there's a slight misunderstanding between the markets in the fed. what the fed basically said it is our goal is to make sure we have orderly and liquid markets. the markets has taken that to mean, ok, we are going to buy like there's no tomorrow. do you agree with that misunderstanding that someone highlighted? peter: to be honest, i am not quite sure there is a misunderstanding because what the fed has now done, it reduced the interest rate, the long end of the curve. purchasesompel the because they don't really need to. the market is in a relatively

low interest rate level. very stable, not very volatile at all. if there was volatility, let's say of the stimulus does come through and there was more spike of treasury yields, i think that will be on the case again. i think there's a reason why the fed has not taken the program off the table and kept them at a relatively low rate so they can restart the purchases if and when it is needed. nejra: that was a comment by wells fargo investment senior global market strategist. strategy around fixed income in the u.s., we have been very range bound for quite a while. do you see value in buying with the fed is buying? do, particularly when you look at longer maturities. ae of the things we like is relatively steep curve against other curves.

againstkind of pitch it the u.k. which is relatively flat. we do think there is still value . both in theterms, u.s. dollars and other currencies, we do like it even though it is relatively tight as well. generally speaking, in this environment, yes, longer valued. nejra: peter stays with us. let's get to the first word news with laura wright. laura: thanks. the u.s. is charging two chinese hackers with stealing or trying to steal terabytes of data, including coronavirus research. the justice department says the information taken was worth hundreds of millions of dollars. adding the two men were assisted by chinese officials. >> what they are doing is allowing them to continue their criminal activity instead of

acting like a normal government would, which is shutting down criminal cyber intrusion. allowing them to continue it because they are on cough to the benefit of the state. recovering from a mild case of covid-19 may not offer much lasting protection. new analysis of 34 patients that didn't need intensive care .2 antibody levels falling quickly. the researcher feuding concerns over the vaccine and the idea of researching so-called herd immunity. judy shelton is one step closer to joining federal reserve board. the president's contentious pick cleared a key hurdle, winning approval of the senate banking committee and a partyline vote. the panel voted in favor of christopher wallace who passed with a clearer margin. 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. nejra: coming up, pedal to the metal. gold at an all-time record. up next, we discussed the flight to havens. this is bloomberg. ♪

nejra: this is bloomberg daybreak: europe. pedal to the metal. gold continues its march towards a record on expectations more stimulus is needed to help the global economy. highest in seven years as investors flock to the precious metals due to a resurgence in virus cases, slowing growth and

negative interest rates in the u.s.. metalsand industrial with expectations of a rebound which may seem a little counterintuitive with concerns around growth. ed morris can talk more about this. he told bloomberg silver will also get an extra boost. ed: the most convenient way to do it is through an etf. you don't have inconvenience of llion and worry about storing it. it is great. how do you store it, hide it under a mattress? the etf is a financial instrument that provides you convenience without having to deal with physical materials. >> a few of the elements that seem to be boosting bullion also seem to be helping silver. when it comes to silver, how much of the industrial demand rebound optimism as well? ed: silver is the poor man's or

poor woman's gold. there's an element of all those other things that go into the gold market. the depreciation of the dollar against other currencies. continued world high-risk and low interest rates. but in addition to that, you have the industrial uses of silver, particularly in portable cells. that boost should really change the relationship between silver and gold. in terms of looking at the next year or two, we think you have a combination of factors. the underlying factors that are boosting gold and silver, and the industrial factors that should change the ratio between silver and gold. haidi: i have to ask the abled question -- given the unprecedented year that is 2020, we look at gold as a commodity or a currency? what do you advise investors to shoot their perspective into? ed: we have never actually

thought about thinking of gold as a commodity. it is not like other commodities. it is not consumable. you never really lose gold in the world. it is more like a currency. it is more like an asset that fluctuates with a lot of other things. this is the kind of moment where gold really works in terms of the yield you can get from it based on all the other things happening in the global economy. you don't have to worry about deterioration, consumption. it is something unlike other commodities, which gives you a sense of where the world is going rather than a snapshot of the world is currently. the momentum and bullishness we are seeing for the outlook of gold unprecedented to you or is it comparable to any other period of financial history in your experience? ed: it is comparable to other periods.

we have a couple of unique things happening. if you look at the price of gold and a whole bunch of other currencies besides the u.s. dollar, there is never been an era it currently is. if you look at the nature of the world we are living in, we are going through a critical environment that can be compared to something so far worse than the great financial crisis when gold etf's came into being in a big way for investors. precipicehe dangerous of being something like the great depression, 1928 to 1932. yeah, there is something unique about it, although we have seen the player in gold in 2008-2009. we saw the play in gold in 2016, but this is, in terms of risk in the global system, something that nobody living today has ever seen before.

shery: you are pretty bullish on precious metals. what would actually make you change your stance, if at all? what elements would you take into account? ed: i think the biggest one would be if there really were an inflation rising in the world economy somewhere. you can think about inflation in terms of food and fuel. a very just in the u.s., limited in terms of recent history amount of acreage under cultivation. we have very adverse weather conditions. and if you look at the main food staples, soybeans, wheat and corn, they look like they could be inflationary. with the doll the depreciation, inflationary across other countries. food and with energy, fuel lead inflation. and reflation could be a damper,

it could be a headwind. nejra: that was global head of commodities at citigroup ed morse talking to bloomberg. peter is still with us. this simultaneous rally in gold and silver say to you about the market mindset? should we interpret it simply as gold rallying with the expectation of prolonged low interest rates? a silver rally because there is some hope in the market of a continued rebound and industrial demand, even if consumer demand remains depressed? peter: i think it is probably a combination of all of them. the gold rally is obviously not new. it has been with us. zero everywhere. that means you don't get any or relatively little income from holding fixed income assets. that obviously means holding gold relatively speaking as more advantageous.

on top of it, there's all sorts of risks ranging from reflation on the one hand to some kind of calamity in the world. any sort of for safe asset even more attractive. when you look at the pricing relatively speaking between the two metals you mentioned, silver is relatively cheap to gold. it is catching up now, particularly in an environment where you do see some kind of a rebound globally on the one hand but particularly in asia which is coming out of the crisis relatively well. i think you can make that case. nevertheless, gold price is the main driver of some of the other precious metals. peter -- we will next talk about when mizuho calls a credible safe haven in fx. as the euro reaches an 18 month

high but is it overboard? we will discuss next. this is bloomberg. ♪

nejra: this is bloomberg daybreak: europe. the euro strengthened to an 18 month high yesterday after european union leaders reached a deal for 750 billion euro stimulus package. that push the euro 14 day relative strength index above 70 for the first time this year, a level that suggest overboard conditions. peter from rbc capital markets is still with us. the technicals might say the euro is overbought but is that a reason to sell it now? peter: i mean, we have seen quite a bit of strength in the euro for a number of reasons. on the one hand has to do with the dollar. on the other hand, the positive developments we had yesterday. if you look at it technically, a

very small window that you showed, but if you go back quite a long time, we are coming dollar..17 against the it comes down all the way from the financial crisis. i think of these levels, somewhere between here and these levels, we will probably see a bit of a pause in the euro strength. maybe a correction. that typically the way this goes. where we go more medium-term depends on a number of things. very happy to discuss them, but in the near-term, i am not sure this is exactly the level with somewhere between here and the level i mentioned. will talk moree about this later in the show but just briefly, mizuho says the euro could get to 1.30 over the next 12 months. is that a level that you feel the next 12 months as well? colleagues onmy

the fx side, we are a bit more cautious than that. that is not the level that we have. but generally, i think there is a case to be made to be optimistic on the euro, definitely. rbca: peter schaffrik from capital markets stays with us. lots more to talk about. coming up later this morning as well, we will speak to the foreign affairs minister. don't miss that conversation shortly after 8:30 a.m. u.k. time reporting of second-quarter numbers that beat estimates. we will break down those results live from zurich next. manus will join us on the show. we did see a lot of green on the screen yesterday following the deal on the eu recovery front, but european futures pulling back ever so slightly in today's session. down 2/10 of 1%. u.s. futures unchanged. this is bloomberg. ♪

nejra: good morning from london. this is bloomberg daybreak: europe and here are your top stories. a mixed picture for stocks or doubts amid the timing of fresh u.s. stimulus coming as president trump holds his first virus roofing in months and tells americans to wear a mask. silver jumps to the highest in almost seven years and gold rises towards a record amid uncertainty over a recovery. citigroup recommends etf for exposure to bullion.

elon musk qualifies for a $2.1 billion payout as tesla's average market value reaches a milestone. today the electric carmaker reports. seeing some caution and markets today around questions over the progress of the u.s. stimulus plan. you are seeing some read on a headline level in asia. we saw the s&p 500 closing in the green yesterday. nasdaq closed in the red after hitting a record. we saw a lot of green on the screen for european equities yesterday following the deal on the eu recovery fund, but futures down .%. -- down .3%. coming off of a decade-long uptrend. uro moving into overbought territory as well. becoming a more credible safe haven. could get to 130 on euro-dollar and 12 months.

riproaring with havens as well. gold nearing a record. silver at a seven-year high. economy,rns around the but the playing field might have to do with a bit of optimism around a rebound in industrial demand. president trump has rebooted his coronavirus briefings with a warning that the outbreak will likely get worse before it gets better. he also took in noticeably more reserved tone, urging americans to wear masks and avoid risky behavior. >> we are asking everybody that when you are not able to socially distance, wear a mask, get a mask. whether you like the mask or not, they have an impact, they will have an effect, and we need everything we can get. nejra: on the stimulus front, senate majority leader mitch mcconnell poured cold water on new hopes a new rescue plan could be reached before some current benefits expire. republicans have broadly backed a fresh round of jobless benefits but voiced doubts over

trump's desired payroll tax cut. let's turn to earnings in europe. abb beat estimates for its second-quarter. -- engineering custom he company is seeing some improvement in orders and the third quarter but still expects revenue to be strongly impacted. in their best case scenario, abb sees recovery in the fourth quarter. for more on the numbers, manus cranny joins me now. great to see you. numbers better-than-expected, but what stood out for you? the commitment to the share bay back -- buyback starts tomorrow. business.ce of the it is on the margins now. 10.6%. down from this time last year. if you want to think about abb, think about electrification of cities. samardzija engineering around the world -- smart engineering around the world. way aheads at 10.6%,

of what the market expected around 8%. yes, it is down, but nobody is unscathed in this environment. the commitment to the share buyback actually happening, that was given to us a couple weeks ago. the margins are better. you and i broke these numbers at the end of the first quarter. they withdrew that guidance in march. the language being used by the team here is the orders at best would recover in the fourth quarter. can we talk about the orders now to contextualize for you, down about 18% versus last year. but still beating the estimates. this is where i think you and i should discuss more. the language when it comes to china, a strong rebound and an order backlog. nejra: yeah. you are going to be speaking to the ceo later, digging more into the nuances of the language as well. what is his prime objective at the moment? manus: he's a new ceo in this

seat now. he comes from a background of running these kinds of businesses at abb. he has 18 divisions, four to five are technically underperforming. what is he going to do with those? his shareholder roster want to be sated. investors, a little less perhaps. but in terms of pushing us. but these are active investors. they want demonstrable return on equity. so what he will do with the underperforming divisions? the death of the global recession and a recovery, the mechanism of recovery, what is the momentum? when you dig into the numbers, it is the personification of lockdowns. europe collapsed by 18% in terms of orders. it was in the eye of the covid storm. how is america recovering even

the news you have just given us from the white house about trump talking to the nation saying to wear a mask cannot socially distance? there are number of things about the reinvention of this corporation. it is about reengineering, and what is set to be divested and how quickly it will be divested. nejra: and you pointed out to me off the air when we look at abb, we are looking at a global barometer, but you are also in switzerland also speaking to a number of executives. tonest kinds of takeaway have you had so far from your conversations? upus: i think if you stack the runway of conversations, ubs was cautious in terms of everybody should just be a little bit more hesitation in terms of saying it will all recover. a vaccine is already very much in the short-term market rising mechanism. fore is not much room

mistakes. you would not talk about the credit markets often in the market is calling for long credit will be have conversations with them at the start of the covid storm. on monday it is interesting the momentum of the clients relative to the momentum of the clients within ubs. haveus industries i think weious reflection to do as come out hopefully of this covid storm. is the vaccine already really in the market narrative? because the vaccine does have transformational -- it will be fascinating to see what the ceo is going to say. he is a ceo in a hurry. nejra: great to see you. shares rose despite reporting in

over 25% drop in revenue for the exec and quarter. quarter. they say they are through the worst of the crisis and it will get better. >> -- not all countries will be the same. what we are focused on is accelerating the implementation of our strategies, staying focused and adaptable so that we can respond, either go quicker or slower going forward.

so that we can come out a stronger company when this all ends. >> what does that mean concretely? where are you innovating? are you going to try to sell to consumers at home more if we are going to be in this lock in, lock out, and we are not sure if restaurants willfully open in the next 12 months -- will fully open in the next 12 months? >> we are going to accelerate the paring down of our volume. we have been driving, getting out our growth model. arethat experimentation core things. we have seen the opportunity to take out goals so we can focus resources on the best brands and the best categories to really strengthen the portfolio to help it come out. we are accelerating a series of things we know. we are investing where we know there is growth.

whether that is commerce with oriver or click and clack digitally enable take away from restaurants that will sell you through the window. and access tonels different channels that are growing and responding. there are categories responding like coke zero sugar is still growing. waters are doing well. do not see things are working faster than we normally would so we can invest behind the channels and the activities that are growing and will be growing long after this crisis has ended. >> pepsi has gotten into the energy drink sector, so competing with you on that. but their snack business did really well and you do not have the same type of snack business like that. fend offse -- competition and try to get market share in another area. >> we are in the beverage

business. that is what we know how to do and we think that will be the epicenter of our opportunities for long time to come. great,end, we we have a grand system around beverages. that is the most likely place. in the short term, winning in those channels that are open. disproportionately higher share. whatever channels are open, let's win shares there today and during the crisis. we will be stronger in those channels, then away from home channels which are even better, we will be in a much stronger position. at-homeshares in the channels in the second quarter. that will be our focus for the next few quarters. then we want to win in the reopening.

helping different types of customers that are one big categorization. helping them reopen as effectively as possible will cut the coca-cola company in the best position in the future. was the coca-cola chairman and ceo. let's get you a virus update. as hong kong virus cases topped the previous daily record, the government is saying new mask wearing measures are set to take effect on thursday. basically hong kong has said it may adopt stricter virus control measures if needed. willlation to the mask, it require mask wearing in public venues. that is set to take effect on thursday. we have also got an update from tokyo. the governor has told residents to avoid necessary trips outdoors over the holiday weekend. new cases of coronavirus.

let's get to the first word news. laura: the u.s. and the u.k. are signaling more coordinated action against china. pompeo says he wants to build a coalition that understands the threat posed by beijing. speaking with his counterpart, the u.k. foreign secretary says further action may follow at the g7. recovering from a mild case of covid-19 may not offer much lasting protection. new analysis of 34 patients that did not need intensive care had antibody levels falling quickly. there is concern over the durability of vaccine and herd immunity. australia suffered its worst coronavirus infections after a surge of cases in victoria. the six-week lockdown may need to be extended unless people comply with restrictions. despite in cases risk the nation's first recession in

almost three decades. 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. this is bloomberg. now let's take a look at some of the events happening today. u.s. a kateri of state mike pompeo is in denmark for talks. ecb:15 london time, president christine lagarde open dissipate in a washington post live webinar. the central bank vice president will also speak online in the annual symposium. his speech is scheduled for 4:00. the goldman sachs ceo joins the economic club of new york at 7:00 to discuss the impact of the coronavirus pendant. -- pandemic. what is next for european assets? we will discuss. this is bloomberg. ♪

is bloomberg daybreak: europe. concerns today around progress on the u.s. stimulus plan. u.s. features are flat. european futures pulled back after gains yesterday. 10 year yield is steady. we are seeing a fourth day of dollar weakness, but dollar-yen is unchanged. oil pulling back as well. dataok ahead at more today. peter, while we are seeing dollar weakness, euro hitting an 18th month high. i am wondering how much more upside you see to the euro based on the deal on the eu recovery

littlehile there's very in the way of interest rate differentials. peter: before i answer your question, if you take a step back and ask yourself why this is happening now, one of the big reasons is the relatively low interest rates that europe has now for year is less relevant now because the rest of the world has basically caught up with europe. hence the advantages of holding dollars in that case have gone away to some degree. when you look at the development, clearly, europe is doing reasonably well with the crisis on the one hand, and it of aven created more european-wide fiscal situation. so that is clearly positive. as far as levels are concerned, technically the currency, we are probably a little overbought, yes. i can see it overextending a

little but the key level is 117. inre a big downtrend comes for many years, since the financial crisis, overcoming that in one fell swoop is probably a big ask. i'm generally positive on euro and european assets, but we have to keep in mind these big levels that typically see resistance coming in. nejra: yeah. the guest i spoke to on the show yesterday, even though we got the deal on the recovery fund, it is not a quick fix in terms of money coming through. we are talking about 2021. and there are a lot of risks until we get there. what is the trajectory for european assets from here until now? it is it all an upward trend or can we see investor sentiment hit a little bit after the big run-up we have had in equities and credit in anticipation of the agreement on the stimulus? all, arctic we

have to go through some main asset classes -- i think we have to go through some main asset classes. credit is the most impacted by the decision yesterday. credits have been tightening ever since the blowout by the ecb. southern european fixed income assets mixing with the italian market, and also southern european credit names. with see over the summer relatively low -- i can see us grinding tighter. big gains are not there. i can see dropping back to .8% where we have been trading at an all-time low. if you look at other asset classes, relatively speaking, they remain cheap. that has been the case for quite

a while, particularly against the u.s. partly because the competition is different, but partly because it is european assets. we know a host of investors globally have been under investing in european assets. so i do think that there is still value in european assets, but depending on the asset, it is not as great as it used to be a couple months ago. nejra: yeah. makes sense. also makes sense what you just said, why you remain long spread products ranging from government bonds to credit. peter, yesterday there was commentary out from blackrock investment institute saying they think european equities are the best way to sort of play a global economic rebound. do you get the sense that that is the mindset among a lot of investors right now, who as you pointed out, have shorted europe

for a while? peter: i am not sure i would underwrite that statement. quite a lot of people i speak to remain relatively skeptical, maybe shifting a little. headwindsndamental that people have very often used to underinvest in europe, they remain in place to some degree. we know the dcb is more active now, has more complaints than others. think europe can get through them. if you ask response from investors i spoke to, arguments are still prevalent. nejra: thank you so much for joining us, peter schaffrik. pleasure to have you on the show. adding moreesla than $100 billion to its market value since late june, unlocking

a $2.1 billion reward for elon musk. and now their earnings must deliver. this is bloomberg. ♪ ♪

tesla has added more than $100 billion in market value since late during. -- late june. click this afternoon they report financial results. here is dani burger. a blot on the table for tesla. analysts expect strong second quarter and that is why shares have surged so much over the past month.

at one point hitting $300 billion in profitability, surpassing toyota to become the world's most profitable by market value. can they get that second-quarter revenue? this is part of why we see tesla right now priced to perfection. if they are able to do it, it may get them closer to reaching a milestone that has eluded them, net profitability for the year, which might get them included into the s&p 500. so far they have had three consecutive orders that quarters of profitability, so this would three consecutive quarters of profitability, and this would be the fourth. issue withsually an the second quarter unable to post profitability, but even if they do not get that fourth consecutive quarter, they still might be included. the index might make an exception for them. nejra: dani burger, thank you so much. the european open is up next.

european features slightly in the red. u.s. futures study. this is bloomberg. ♪

>> welcome to bloomberg markets the european open. matt: today the markets say not all that glitters is gold. silver jumps to its highest level in more than seven years as investors flock to the precious metal. futures point lower. in europe the cash trade is less than one hour away. here are your top headlines.