>> good morning from london. this is bloomberg day break europe. these are today's top stories. u.s. equity futures extend loss s. mike pompeo said securing freedoms from the communist party is a mission of our time. global stocks had already been on a downward trajectory after an unexpected rise in u.s.

jobless claims. president trump scrapped his g.o.p convention as the coronavirus rages. concerns that big tech is on a bubble. welcome today break europe. the results came out a few minutes ago. 650 million. t was an estimated loss of 250.1 million. equinor posted an unexpected second quarter profit. they are on track to deliver on their plan for cutting costs of $700 million. it cease 2021 capex at 21 billion. it sees 2022-2023 at an average

of $12 billion. a clear beat in terms of second quarter adjusted net and profit. keeping the dividend and keeping the full-year capex guidance on change and on track for cost cutting. those are the main lines coming through. we'll speak the the c.e.o. coming up at 7:00 a.m. u.k. time. japan is closed. china is bearing the brunt of the losses. red on the screen in hong kong and australia. a little bit of a weaker yuan. an increase in tensions between the u.s. and china given the news around the order of the chengdu consulate. take a look at what's happening in the u.s. yesterday all three bench mashes fell over 1% for the first time in a month following the increase in u.s. jobless claims for the first time since march.

it wibed outside monday's rally. futures opening lower today as well. europe closed pretty much flat yesterday. we did see some of the gains given up in europe. the dollar extended losses. futures not giving us a lot of direction. the dollar index is at its lowest level since january now and gold close to a record. now back to china demanding the u.s. to close its chengdu consulate. the statement come a.f.c. the american government forced china to leave its mission in houston earlier this week. the chengdu consulate opened in 1995. the retaliatory move came after secretary of state called xi jinping a true believer in corrupt ideology he said the

trade deal means less to him because their role in spreading the coronavirus. great to have you with us on the show. a number of elements of rhetoric mounting now that are perhaps going to start to cause concern to the market. how concerned are you that we're going to see equities slide as a result of u.s.-china tensions. it wasn't that that necessarily dominated the session yesterday but could it start to weigh on equities the rest of the year? >> good morning. we think that investors have been ignoring the political tensions so what they focused on was the impending recovery to ve global economy and also stimulus that global banks have enacted.

equity markets have strengthened but underneath the surface, the tension has been ongoing. i think investors are turning more of their focus into this issue now. knew we have more rhetoric coming from the u.s. and china. is the u.s.-china tension going to stay? as we move toward the election, as president trump's approval rating goes down, we see this is the case now, he is going to impose stronger rhetoric on china and this is exactly what's happening now. we were not surprised there was ome selloff. president trump still has to care about the stock market. there is no real substance into actually having threatening

measures. >> right. but perhaps some of the escalating moves on the consulate suggests that the hawks are in charge. what does that mean for your view on chinese equities, janet? >> yes. so we like chinese equities. there is always going to be short-term -- investors -- long-terme markets -- investors. we do see there are more quality growth companies in the region that are more -- they have a competitive advantage. the tech sector. healthcare sector. chinese equity. the prospect that more

institutional investors participate. it is pretty underowned by national investors. we think the trend will continue. >> janet, in terms over the talked a s well, we lot about the fact that it has been more industrial rather than consumer-led in china. does that affect your thinking on chinese assets? >> yes. basically what we look for is -- i think for now, at this stage of the cycle because of all of the huge stimulus measures, most of the chinese stimulus measures are going to the old industry, the infrastructure. that is really because it gives you the biggest bang for your buck. it depends on what the economies are doing, following employees

and giving cash. it will benefit the industry at least for now. over the long-term, the sectors won't be performing as well. sectors like technology, ealthcare. >> president trump has canceled his florida nominating convention. the move to cancel the biggest event of his re-election mpaign as the host state posted record deaths from the pandemic. what was behind the decision? >> good morning. it was almost inevitable that the trump campaign was going to have to abandon this convention due to the fact that you're seeing rising numbers in florida. it has become a hot spot in the

united states and it has record deaths. what is interesting is we spoke months ago about the fact they actually moved the convention from charlotte, north carolina, because the governor wouldn't waive measures of social distancing and they moved to it to florida and now florida is really becoming a hot spot. it is key for the administration and the campaign to have had this convention. president trump is trailing in many polls against democratic nominee joe biden. we know in 2016, his big rally, this is power mount for him and it could have been a way for him to joel and excite his base and on top of that, he was clearly looking forward to this as little as two weeks ago, the campaign was saying this rally and convention will be on and now they are going to have to do what the democrats are doing, go virtual. >> thank you so much. let's get to first word news. >> the u.k. has announced its

biggest flu vaccination plan for the winter to protect from a possible second wave of coronavirus. they hope to vacs night more than 30 million people. more than twice as many as last flu season. they will be available to everyone under the age of 50. intel is warning of another production delay. concerns this the world's largest chip maker will fall further behind rivals in an area it once dominated. it will likely be delayed by six months and they are considering something that previously would have been unthinkable, outsourcing some of its chip production. spacex's value looks to be going higher with an evaluation at $44 billion. that would rank as one of the most valuable venture companies in the u.s. it delivered two astronauts to

the international space station. a first for commercial craft. global news 24 hours a day on air and powered by more than 2700 journalists and analysts in more than 120 conditions. this is bloomberg. >> thank you so much. coming up, jobless claims rise for the first time in march. we take a look at the situation of the u.s. economy next. this is bloomberg. ♪

pnewline this is bloomberg day break europe. i'm nejra cehic in london. u.s. jobless claims rose last week for the first time since march. this may be the clearest sign

yet of a pause in the country's economic recovery as the coronavirus surges and forces doors to close to businesses once again. it wose to 1.3 million when the consensus was for no change. majority leader mitch mcconnell said the $1 trillion g.o.p plan won't be ready until monday. they had expected him to begin releasing a series of bills thursday. janet, the thing about the initial jobless claims data is it caps a week of concerning data including credit card spending, a leveling off in a running back in air passengers. a measure of consumer sentiment turning more pessimistic for july. restaurant book , . i could go on. when you compound that all together with the initial jobless claims figure, how high

do you rate the risk of a double dip recession in the u.s.? >> i don't think there is a strong risk of a double dip re snegs the u.s., this kind of data is after the fact that there have been virus surges in some states in the u.s. where some open measures have been rolled back temporarily and some restaurants, not being open. there is bound to be an impact but as you look at the trend, the continuing points are are still come down bespite an increase in the weekly numbers and you look at the consumer spending data, it is on a rebounding trend. itis a risk but we don't see as material as the moment. >> pnewline of course one thing

that might create more of a risk is if there is a pullback in federal aid, if we don't get stimulus coming through to replace what is going to expire, janet. what would you put on a stimulus plan that is going to satisfy the market? >> so i think a lot of the stimulus measures have been quite helpful. the paycheck protection program. the loans, the cash to the consumers and the very generous unemployment benefits. i think some of that will have to continue because if you n't, there will be a patch which will be bad for con sungs. i expect some of those measures to continue. it is important to make sure money is in the pocket of onsumers for the u.s. economy.

it is important to get money into the pockets of people. some of these unemployment benefits to continue, maybe not as much as the generous -- but i think some of these measures have to continue somewhat to satisfy the market. pnewline speaking of satisfying the markets, youed a advise -- u.s. exposure. we have seen the u.s. equity market look through data, particularly bad data but yesterday following initial jobless claims all three benchmarks dropped more than 1% for the first time in more than a month. are we going to see the u.s. equity market given where it is priced now to become more sensitive to any weak data points? >> yeah. i think so. i believe things will get

better. we have continued to see green shoots in the economy. there are risks as the virus continues to surge. it doesn't change our view that after the volatility, we think that the virus situation will eventually be controlled and the economy will be functioning normal pace again. continuing good news on the vaccine side and the medical side of things. evidence suggests that the governments, not just the u.s. but globally, they don't have the appetite to shut down the conomy completely. the risks are not priced in properly. equity markets are on the upward trend for the u.s. for health

and healthcare. pnewline janet stays with us. we'll take talk more about tech in a moment. twitter reported a second straight quarter of user growth. its advertising business was hammered as businesses pulled back on spending. we spoke to their c.e.o. about the company's earnings and challenges in 2020. take a listen. >> we feel like the principles e use to guide our work, the policies that we are transparent about, the way that we show up in our conversation with advertisers, content partners, agencies and human rights group who is have an important voice around these things have really helps d us stand on our own whether whether it is around the conversation that has happened over the last few weeks or other conversations shes we understand how we think about things and they find -- we learn a lot from

the engagement that we have with them. >> but clearly we're not coming out of the pandemic any time soon. obviously the economy is suffering. how much longer do you expect there to be a retraction in global advertising? >> it is hard for us to predict some of these things beyond our control such as shelter in place and how events will come back. what we do know is what a much larger audience with all of the progress we made on our revenue products and coming ouft this situation as a starter company that can deliver better for advertisers, that when live events come back, baseball season starts tonight. basketball season starts next week. as people come back to these things, there will be a better fogs to help advertisers reach commerce on twitter. >> how would that work? am i going to have to pay for my

twitter and what wouldn't or would be behind a pay wall? >> we would be happy to take your money if you like but it is more likely as we experiment around subscription services these would be value-added services beyond what people get today. hiring people where we're thinking through the opportunities. we'll test them and when we have things to announce you'll hear about them through product announcements and not through job postings. we put something up a few weeks ago and that got a lot of attention. >> we have to talk about this great hack, the biggest hack i can remember in all of my years covering twitter. bill gates, elon musk. joe bide opinion. i know you're working with law enforcement to figure out who is behind this. with a massive election coming up, how can you assure the american people and people in any country that the integrity of our elections are safe?

>> we worked really hard when we have a security issue like this to bote understand it and then to communicate really clearly what we have learned so people all around the situation can gain the confidence that we have fixed the situation and that we'll work hard to make sure it doesn't happen again and to learn that this one happened to be social-engineering driven so and we hope to learn so other people can avoid these same kind of challenges. these are frustrating when they happen. the way we show up at a time like this helps us build and rebilled build trust with people around the country. >> you have the c.e.o.s of apple, amazon, alphabet and facebook scheduled to test monday before the house subcommittee. they want to hear from your c.e.o. jack dorsey as well.

has he received a formal invitation? >> i'm not sure what to make of it. this seems to be more about other companies and the issues they face than it does us. our conversations with regulators and policy makers are important to our work all around the world. we want them to understand our principles and policies and how we enforce them and we find when we do that, everybody is better off for the exchange of ideas that we have. i'm not sure this will tie back to this meeting next week or not. pnewline that was ned seagle, the c.f.o. of twitter. a production delay. we'll look at that what that means for the world's biggest chip maker. this is bloomberg. ♪

pnewline this is bloomberg day break europe. i'm nejra cehic in london. another production delay. the stock fell 10% in extended trading sparking concern the world's largest chip maker will fall behind its rivals in an area it once dominated. the most powerful chip will go on sale at the on the other hand 2022 or 2023. a year behind schedule. the nasdaq erased a huge monday rally. concerns of plunges in microsoft and tesla. the biggest internet and software companies have fallen in six of the last nine sessions.

janet, it is interesting because all 11 tech companies that have reported have beat earnings forecasts but the sector is gone . does that stock market reaction versus the earnings tell you it is time to take some profit from the tech sector? > i think the sector has has done really, really well despite that we have been in a very difficult economic situation. the rally mainly driven by the big techs. it is normal for markets to take a breather on this kind of strong rally. we still -- in the sector. t is quite normal.

pnewline we'll pick up on this in a moment. you stay with us. coming up, comparable sales that beat estimates. we'll get more with the c.e.o. next. this is bloomberg. ♪ hey, kids!

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♪ >> good morning from london. these are today's top stories. chinese stocks in u.s. equity futures extend losses as china orders the u.s. to close one consulate. mike pompeo said securing freedoms from the communist party is the mission of our time . glover -- global stocks were on a downward --

florida convention is scrapped as the virus raised this -- virus rages. the nasdaq with gains for the week on concerns big tech is in a big trouble. looking at ecuador. we have got the results earlier this morning. it was a clear beat on some of the numbers. welcome to daybreak europe. let's get to the markets. china bearing the brunt of losses, hong kong and australia in the red. japan is closed. there are concerns of the u.s. and china playing into that. also the catch-up in the u.s. jobs report. we saw all three benchmarks fall more than 1% for the first time in a month. the nasdaq erasing its gain for the week. lots of questions continuing around potential tech bubble. others say it is a different situation. european futures pulled back after europe closed flat

yesterday. the dollar extends losses. not much direction from treasury futures, no cash trading and gold near a record high. china has demanded the u.s. close its consulate. this comes after the american government forced china to leave its mission in houston earlier this week. 1985.engdu opened in move cameation rate after mike pompeo called xi jinping a true believer in a bankrupt totalitarian ideology. president trump said the trade deal means less because of what he called china's role in spreading the coronavirus. let's get back to earnings and signify has reports that beat an estimate. liga five -- joining us now is the ceo of signify.

thank you for joining. you have said you are not providing financial guidance at this time. why are you not able to provide that for the market? eric: good morning. you see as well as i do the volatility is quite high on the markets at this point in time. the visibility that we have for , it is- quarter three not good. we don't know what is going to happen. we see the rate of infection going back up every other countries going to proceed to other lockdowns. it is difficult in this point in time to give a guidance. we are cautious on the guidance and we see the markets. we are very optimistic otherwise because we have been able to q2.t in q1 and we have seen stimulus from

governments that are positive for us. and the green deal in europe, the key investment grounds where we are focusing like i'm a change and food security, circular -- like climate change and food security. cautious and optimistic for the upcoming months. not givingow you are financial guidance, but internally you must have some kind of base case on which you are basing your business operations. some companies have said their guidance is based on the fact they are not expecting further lockdowns or a second wave. is that your base case? aside theave put target mechanisms we had the previous years, and we go through what we call quarterly forecasts. if you look at the performance , our number one priority

was the protection of human capital, not only the physical health of our people where he implemented very successful measures worldwide on all the sides were we operate but also mental and psychological health where we kept the teams together with a high level of motivation. we did not lay off because of the covid-19 situation and we recorded our highest ever employment score which is measuring satisfaction. to thehad to adapt situation to report strong credentials despite a decline of 20% in our revenues, we are maintaining our operating margin at the same level of last year, salesd we generated 8% of in free cash flow which is 37 million more than the previous year. at the end of the day we have those mechanisms that help to

protect our human capital and generate good financial results. nejra: where are the challenges? are they on the supply-side? are you seeing demand in certain geographies? the -- q1 one 30% of 30% was linked to supply. 90% linked to demand. we have been able to reorganize our supply chain which is running today. the only issue we have like many companies is demand. we have seen big shortfall of demand in countries of asia, india, countries in europe like rance, spain, italy and u.k. we have to face the situation in front of us and more than ever keyword.ptation is the

we need to adapt quarter after quarter to the situation we are facing which is quite volatile. nejra: that is interesting, the shift from q one to q2. on adaptability, you have an ultraviolet light you are working on that can degrade coronavirus in a matter of seconds. talk to me about how big a part of your business this is becoming. can you put numbers on it? is it a bigger part of the overall business? eric: it is going fast because it is a preventive measure. it does not cure but it prevents. have in order to prove scientifically it does have an

impact -- it eradicates as you said. we have multiplied our product capacity by eight. we have a first step in september and second at the end of the year. we have at the beginning of until 2021 capacity that has been multiplied by eight. we also are bringing to the market new offers. we have 12 new families of products that will be brought to the market before the end of the year. at the same time we also acquired a company that is specialized in infection. we bought that company, we are developing the worldwide. we see a very high level of business, since the start of the crisis. it is a known technology.

we are now developing it very fast where we see needs in every country. nejra: you mentioned you acquired a company and to progress with these business moves. do you see yourself making more acquisitions in order to capitalize on the business moves you are making as a result of the pandemic? acquisitione a big this year. priority is to deleverage. if we see opportunities that we really have to go for, it will be small companies built on oppositions we may do. -- acquisitions we may do. but we need to deleverage at this point in time. nejra: the ceo and chairman of

signify. thank you for joining us and giving us your time. let's get to first word news. laura: the u.s. economic recovery looks to be stalling. jobless claims rose for the first time since march to above 1.4 million, but continuing claims dropped slightly. hundreds of billions of dollars in federal aid is set to expire. the u.s. economy could be a double-dip recession risk. president trump is canceling the republican convention next month in florida as a tally of virus cases hits 4 million. the gop decided to move to jacksonville after north carolina's governor refused to waive social distancing rules. florida was hit with a surge in infections. the u.k. is drawing up plans for an infrastructure bank to fund projects across the country. it comes as the u.k. may exit the european exit -- european

bank this year. state owned lenders to finance the project. 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. ♪ thank you so much. now turning to the business of equality and four former employees of google are trying to get a court to pass a class-action lawsuit. it would represent 10,000 peers in a gender pay disparity suit. we are joined by bloomberg quicktake's jennifer. great to have you with us. mentioned, these women are really sort of leading the way right now in the tech industry, women and minorities are continuing to step up the pressure on leaders to confront these issues. there is four former employees seeking this class-action status which would represent over

10,000 of their colleagues. they are seeking near 600 million damage from the companies. they say google paid women less ice salaries,'s -- base salaries, smaller -- they say all of this behavior is a violation of california's equal pay act. this has been going on since 2017. google has tried to dismiss the case. defend.ll but if these women are given class status, it could set a precedent in the industry. we saw one earlier this year, a suit was filed against the company, class-action. in comparison, similar lawsuits filed against twitter and microsoft were denied class-action status. we will be watching this closely. quicktake bloomberg reporter.

thank you. don't miss the quicktake show tonight on facebook 6:00 p.m. u.k. time. gold is $40 from its all-time high as concerns about global growth continue to boost the precious metal. this is bloomberg. ♪ tal. this is bloomberg. ♪

nejra: this is bloomberg daybreak: europe. let's get a quick check on the market action. china bearing the brunt of losses on concerns about u.s.-china tensions. seeing futures in the red. closing up after jobless claims,

treasury futures don't give as much direction and oil holding losses. janet, in the u.s. we saw all three benchmarks lose more than 1% yesterday. the nasdaq has erased gains for the week. would you describe what we are in right now as a bubble or the conditions really quite different to 2000, where you saw the fed raising rates as opposed lower for longer right now? janet: absolutely. like in the stocks growth category, these usually perform well in low interest rate environments because investors should shape returns by this. the interest rate environment will be very low for the foreseeable future. this supports technology stocks

going forward. there is variation within the technology sector. we have less competition, good wetform, innovation, so think these companies will actually do better in covid-19 environment. supportd continue to the stock going forward. [indiscernible] nejra: thank you so much for joining us today. janet nui, great to have you with us. gold is near $1900 an ounce. mark mobius says gold is an attractive asset to hold right now. as industries have gone down, the emerging markets rates with sovereign debt and corporate debt can also move

down. that is one thing. the second thing is the amount of money that to the world bank, the imf and other organizations are putting into these markets to enable them to pay back debts and to reduce infrastructure spending. that is another thing. within the country's themselves, -- countries themselves, they have been spending. the budget deficit will be greater. that has been pouring into the markets. it is a combination of these things that has led to an increase. the interesting thing is gold has done just as well as the equity markets. i notice although gold lagged since the beginning in march this year until now, gold has lagged the s&p 500. look at the five-year numbers, it is the same. both have gone up about the same inm about 75% for the low five years.

we are in an interesting situation where people are looking at stocks to preserve their capital, because stocks will adjust to inflation and also gold. they are sort of hedging their bets. >> when i look at real yield particularly in the u.s. and then look at gold, that doesn't really say v-shaped. in terms of inflation expectations we are like 100 basis points off where we were like a few years ago. how do you reconcile that? when interest rates are high, people will tell you you are holding gold, it does not pay any interest. but when is near zero, gold is to have.tive medium you don't have to worry about not getting interest on your gold. you see the gold price will rise as uncertainty is rising.

one of the other interesting things about gold, and i have not looked at the numbers recently, the supply coming out , what is it going to be. i assume output should be declining for gold. that puts additional pressure upwards on the price. >> when you look at the u.s.-china spat, does it diminish significantly your appetite for chinese assets? should we assume we will see more fights between china and u.s., china and europe and other countries? our: we factored that into calculations. china is very important. along with brazil, china and india are big for us. we look at china, chinese companies in a separate light. we look at what the global non-us activity is.

for example, the way you have seen it, alibaba financial services has now teamed up with south africa to provide financial software and apps. this is the kind of thing that is happening. these chinese companies are moving globally to places where they will not be affected by the situation in the u.s. in twoill get to that seconds, but are you buying gold? >> i would be buying now and continue to buy. >> what about silver? >> silver also because it will follow gold. gold is of course the most important. that was mark mobius speaking with alix steel and francine lacqua. let's stick with gold.

what are the most important things with a lower opportunity cost of holding gold now real rate are negative. the dollar is not strong and it has weakened. there are tensions between china and the u.s., and the coronavirus case count which keeps growing, it has blown past $1800 an ounce. nowadays 2% -- now it is 2% away from the all-time high. ubs thinks gold will hit $2000 -- by september. this is likely going to have to adjust as gold keeps rallying. silver another precious metal is rallying. it is heading for his big list -- biggest weekly gain since 1982. a lot of people are heeding mark mobius' advice. seeing economic destruction by

the coronavirus. seeing a weaker dollar. as cities emerge from coronavirus lockdowns, the way people use public spaces is changing. we discuss how. this is bloomberg. ♪

nejra: as cities emerge from coronavirus lockdown, the way people use public space has been changing. this person has covered european cities at city lab. you have been looking at how authorities and residents are reclaiming the open spaces.

what did you find? >> urban space is at a premium with social distancing measures. all activities need more space in order to interact safely. we have found for example places serving food and drinks and moving into the street, not just the pavement but into the roadway. cycling is one of the few safer ways of traveling long-distance. that has required more space. you have had projects like bike lanes being installed across major cities taking away space from cars to make it safer. we have seen a real move outdoors and a reduction of space for cars. just to make the kind of lifestyle possible. not really seen is it has allowed people to return to their pre-pandemic habits. even though we are coming out --

thank you. atra: contributing writer bloomberg city lab. thank you so much. chinese equities down 3%, u.s. futures -- this is bloomberg. ♪

♪ nejra: good morning. i am anna edwards live in london alongside matt miller in berlin. matt: today the markets say, do i smell fear as stocks and futures slide. near nine-year highs, the nasdaq rumbles overnight after trading at its highest relative to the s&p for 20 years. the cash trade is narrowing.