nejra: good morning from london. i am nejra cehic with manus cranny from dubai. this is "bloomberg daybreak: europe," and these are today's top stories. stocks are mixed. u.s. democrats say momentum is gathering but want more concessions. the white house hints at executive action if there is not a deal. we are one hour away from a rate decision. it's projections are expected to show a recovery looking less v-shaped than in may.

corporate results come fast. the hiring trend on second quarter impairment and the cost of the pandemic. 6:00 a.m. in london, 7:00 a.m. in germany where siemens numbers are crossing the bloomberg terminal. this is amidst -- this is a beat. 1.79 billion on the industrial businesses. the estimate was for 1.19. they are reaffirming the 2020. they still reaffirm refrain from giving guidance for 2020. it is still very tough for them. the estimate on the numbers was for 1.1 billion overall. let me try and get those for you. still no full-year guidance. they see it comparable to crime this year.

still a moderate decline for 2020. refraining from the guidance. third quarter free cash flow is $2.46 billion versus 134 a year ago. -- 434 a year ago. it is a different business to the one they took over in the early 2010s. 2013 is when he was there. you have got a little bit of data to get through. we will talk a little bit later on. he is the ceo of siemens. firstns us for the interview of the day. credit agricole, how did they do? we did the socgen numbers the other day. how did it look for credit agricole? nejra: overall, they have seen their provisions rise with covid hitting big clients. let me take you through the numbers. second quarter provisions, 842 million euros. the estimate was 775. bigger provisions than expected for the second quarter.

second quarter revenue comes in in line with estimates. second quarter net income actually beat 945 million euros versus 720 million euros estimate, and second quarter investment bank revenue jumping 38% to 780 million euros, so basically, credit agricole setting aside more than expected to cover lows after the pandemic hit retail clients and march corporate customers. debtosts to cover the drove down results and some of the lenders most important business units, including the large client segment, which saw a fivefold increase in the cost of risk from a year earlier. just a year earlier. just to note, credit agricole is more diversified, less dependent onn bnp paribas and socgen trading, so it did benefit from the volatility that boosted fixed income results. at the same time, it was able to avoid the dividend related losses at socgen and natixis.

overall, it was a mixed quarter better thanost expected net income. we will speak with the cfo. that exclusive interview after 8:30 a.m. u.k. time, manus. manus: from the french bank to unicredit now, unicredit's trading unit seems to have had a bumper quarter. second quarter trading profit, 357 million. the estimate was for 270 million. the net income number comes in way ahead of estimates. 420 million. near doubling of the original estimate that we had in the market, driven by the trading side of the business. seems to be one of the considerations. now, when it comes to the guidance, confirming the cost of risk for them. risk is going to be 120 basis points and they are

saying that they still see, going into next year, for 2021, they see an adjusted net profit to 3.5 billion. there beat on the net in -- t double theore than net estimate. it delivered a little bit of value there. ok. that is the state of play on those. akzo members coming through. i know you have the quick line on that. -- numbers coming through. i know you have the quick line on that. lookingust quickly through these numbers, coronavirus hit was reflected in the first half underlying earnings. akzo withdrawing two earnings goals and canceled its fourth-quarter special dividend. it reaffirms the estimate of a

1.5 billion euro covid-19 hit to full-year earnings. first half net income actually plunges 39% 1.4 billion euros. that number i brought you a moment ago on the coronavirus impact so it is a first half net we willrop of 39%, and talk earnings with the axa ceo, coming up in the show. we will go into detail more into those numbers and he gives us the exclusive interview at 6:30 u.k. time, manus. members, the the global employer from around the world. resilience and agility in the second quarter of this year. profits, growths profit falls by 19% in march and remains flat. the man behind the numbers joins us now, the ceo. let's have that conversation and cross to the man on the line. the group ceo.

you. to see resilience and agility in the second quarter of this year. i want to know what the momentum of recovery has been like and just give us a sense of where is the recovery strongest and what is the biggest theme that comes through in the recovery around the world? good morning. yes, we areing, and successfully navigating this crisis. you see that in the quarter, we had a 28 decrease of all revenues, so quite sharp, but it is linked to the environment. on the other side, we are performing ahead of the markets in a number of countries like france, italy, japan, spain. i told you, in the quarter before, that would be the trough , and it has been, -33 percent. since then, we see a gradual improvement. in june, we were at -25%. we see that in july, this

gradual recovery is continuing, but we expected this recovery to be nonlinear. you see that in some part of the world. some are in lock down, like in australia. some countries are hit by a second wave like hong kong. for us, the good news is that we have remained solidly profitable, we have a strong balance sheet, and we have been able to generate 330 million free cash flow in this quarter, continuity business and continuing to support our colleagues and our customers. nejra: great to catch up with you today and good to hear that you are in a good position in terms of profitability and cash flow. when we spoke to you last time, you actually did tell us it was too early to speak about a recovery and you said you were

seeing early signs of a gradual stabilization. is there any risk to that stabilization right now, given that, for example, in europe and in other parts of the world, you already mentioned australia. there are those risks of a second wave, which might perhaps encourage employers to put a freeze on hiring. for the moment, we do not face a major hit from a second wave. we see that these types of lockdowns are really localized. are watching the television. in many countries, you see the increasingnfections quite fast, and the question is, will we be able to maintain the infection?f the economies can continue.

this decision will be taken by the government. i do not expect anymore that governments will put countries and economies in lockdown. already seen many statements about that. but we could face some lockdowns in restricted areas, in cities to protect for the short term. we seee at this stage, week after week, month after month, this gradual recovery, but we expect a nonlinear recovery for the reason i have mentioned. forwards, wee look are going to end furloughs. employees are going to have to contribute more. some of the language that was used around the last quarter was a bloodbath in terms of the temporary contract market.

as help from government is perhaps reduced, are we going to face a huge spike in unemployment in the closing quarter this year, and if so, we is most at risk -- where is most at risk? alain: governments in the vast majorities of the countries are applying the german recipe that this country has applied in the crisis of 2008-2009. governments are -- the recovery of the economy together with the reduction of the furlough support. act to the important manage, to put the economy back at work and then reduce the support so that you do not have creation of unemployment, especially mass unemployment, so time will tell if the supports are as effective this time as it

-2000n germany in 2008 nine. italy, it is too premature to see how after the holiday period, activity will start. we have to wait the month of september. this is really the key point. i expect some sectors will be structurally impacted. we know that travel, terrorism, and so on will be structurally impacted for many years to come. but some others will restart. some others will be activated like everything around e-commerce, logistics related to e-commerce. there will be pockets of growth. you getting requests from clients right now and do to promotey services diversity in hiring? alain: for sure. we promote diversity in hiring. we promote also what we call

career transition because we see, in many sectors, and many get thems, we need to prepared either for new roles inside the company or outside their current ones. we expect that some industry will restructure themselves and it is important to prepare these people to a new job outside their industry by upscaling andrea scaling ---and rescaling them. diversity is not only a question soreligion, color, race, and on, but it is also a question of experience. we are the mobile leader. this to help another 400,000 people to find another job thanks to services. nejra: alain dehaze, ceo.

great to have you on the show. thank you so much. coming up, we are going to talk about earnings with the ing group cfo. he gives us his first interview of the day, next. this is bloomberg. ♪

nejra: this is "bloomberg daybreak: europe." i am nejra cehic in london. manus cranny alongside me in dubai. ing reporting provisions for loan losses for the second quarter that missed the average analyst estimate. the dutch lenders citing 310 million euros of impairments on goodwill in the second quarter. banks are being hit across their businesses by the unprecedented impact of the coronavirus, ranging from setting aside billions for sour loans to -- joining us now is ing's cfo,

tanate phutrakul. thank you so much for joining us today. the second quarter loan loss provision came in greater than what was expected by analysts, but what is really key for analysts and investors is the full year loan loss charge. most european games have given that -- thanks have given that. i don't see that in your numbers. can you give us some guidance in what you expect for loan loss provisions for the full year? -- very proud about how has been.-- i think if you look at our revenue numbers, it has held up. they were quite strong. our capital ratio actually improved from 14% to 15% and our loan losses that you talked about remain relatively modest

loan-loss.n terms of having said that, you are right that we have taken somewhere inund 1.3 billion euros terms of charges for loan-loss rates during q2. addressing your question about what the future will bring, i think looking at loan losses in q2, we have basted on a certain economic scenario. for the euro zone, for example, it is based actually on a reduction in gdp of minus 8% and a recovery of roughly 5.5% going into 2021. if thatbasis, i think, situation transpired, we expect that loan loss provision thing will be lowered in q2. second half of the year compared to the first half. >> let's put some context around this. the market wants to know -- you have gone from 42 basis point

provisioning in q1 and you confirmed to me the equivalent of 80 basis points here, so this is a dramatic either deterioration or reassessment of your portfolio, so which is it? you are now way ahead of your peers in terms of deterioration. is it that the assets are deteriorating more quickly than you thought? are you being more aggressive in your assumptions? tanate: good question. i think if you look at our basically, the element of frontloading, loan loss provision, even before the actual loan losses appear, in that 1.3 billion euros, approximately 400 million euros. it is basically reflecting the macroeconomic slowdown that you see without the actual loan loss being visible in our numbers yet. having said that, i think if you look at our nonperforming loan

ratio, it is actually quite low favorablyich compares compared to our european peers. point, would you say that your resilience is better than your peers? and why is that? there is no reason really to think that you have got safer loans than other lenders, for example. in two i think probably parts. if you look at this, almost 40% is in mortgages and the mortgage portfolios happen in the northern part of europe. the netherlands, germany, where the performance and the economies are relatively quite strong. we have quite limited exposure to some of the more sensitive parts. for example, our portfolio with respect to airlines is quite modest. our exposure to hospitality's is

also modest and the last point to make about the loan portfolio is we are quite a diversified group with lending that is not concentrated in any particular sector except as i mentioned in the mortgage area, which we deem to be quite safe. covid has ravaged every industry and driven fundamental changes. to have tong accelerate or will you accelerate your bank closures? we know you as a technology savvy bank, but is covid going to push you to accelerate bank closures, physical closures? tanate: i think that acceleration is already happening. if you look at the last quarter, almost over 80% of interaction with the customer base is digital. more than that over 41% of our customers a deal with us only on that mobile device so clearly, the acceleration of the

digitization, a strategy we have been pursuing for quite a number beingrs, is actually accelerated by covid. indeed, we are always reviewing our physical footprint. in some markets like netherlands, we have announced reductions in our branch footprint so indeed, that acceleration of digitization are within our industry. means i wonder what that for costs. your cost income ratio target has been 50% to 52% for a while. it is currently, according to bloomberg intelligence, running at nearly 60%, so is your cost income ratio target will achievable? how aggressively are you chasing that right now? have gottenink we to that 50 to 52. as a digital bank, we believe we can get that. we are going through quite an unprecedented period of time where our revenue is under some pressure because of the economic

situation we see here today. we take and review our efficiency plan and the fact that we are able to keep our costs flat year on year. i think it is a testament to actually reducing costs while at the same time investing in our future, in our digital future. finish off with dividends. we have a huge review from the ecb, pushing for pause, pause and reflect. what investors -- i wonder whether you still retain progressive dividend policy and will you have -- are you going to have excess capital that might be trapped because of regulation? nonetheless, you will have capital to release eventually. i think if you look at our capital ratio, it is sitting at 15% ratio, which is 5% higher

than our trigger. plenty of room for dividends. we even reserve dividend for the full year 2019, which we have not yet paid, and i think once the dividend relaxation comes from the european central bank, we are looking forward to actually resuming our dividend payments. committed tomain progressive dividend policy. put basicallye our dividend policy into suspension because of the ecb recommendation. we will review policies. manus: thank you very much for being with us this morning. frank discussion on the provisions. tanate phutrakul, the cfo over at ing. coming up on this show, more , director offauci

the national institute of allergy and infectious disease. ♪ ♪

manus: it is "bloomberg daybreak: europe." i am manus cranny in dubai. nejra cehic in london. we are knee-deep in the earnings season. we had ing. we have had -- lufthansa clearly negative second half. lufthansa, second quarter adjusted loss, he bit loss, 1.8 6 billion. the market penciled in 1.82. they expect positive cash flows in the course of 2021. that is a 59% drop in their operating expenses. what have you got? nejra: the loss that you talked about, that came after second-quarter revenue fell 80%

to 1.8 9 billion euros. the estimate was for 1.34. lufthansa sees precrisis demand normalization at the earliest in 2024. coming up, we speak to the axa ceo. this is bloomberg. ♪

nejra: -- manus: good morning from bloomberg's middle east headquarters in dubai. i am manus cranny. nejra cehic alongside me in london. it is daybreak europe. of stimulus in the u.s. and the democrats say momentum is gathering. they want more concessions. the white house takes executive action if there is not a deal. we are half an hour away from the bank of -- we have a bank of

england rate decision today and projections are expected to show recovery, looking less v-shaped than in may. we speak with the governor, mr. bailey. do not miss it. sick and results come fast. siemens operating profit rises. lufthansa steps up its measures to cut costs. up next, the axa ceo on the cost of the pandemic. to daybreakme europe. let's continue with earnings. we have numbers coming through from adidas. not that many at the moment but i will bring your what we have got. second quarter revenue at 3.5 8 billion euros. the estimate, 3.24. that second quarter revenue coming in stronger than expected . the second quarter gross margin at 51%. the estimate was 49.8. in terms of what we were looking for coming into these

numbers, what was key to look at likely handing adidas its worst quarter in many years so we are going to dig into the numbers and see whether that actually happened and we want to know whether business is recovering quickly, particularly in china, and to draw some conclusions for regions that are yet to lift their social distancing requirements. the expectation is that adidas was unlikely to provide a new full-year forecast and i am not seeing that come through right now so that is something we are looking at. second quarter revenue, 3.5 8 billion euros a beat. second quarter gross margins coming in higher than expected as well. manus. all, got to of correct myself. i made a mistake. the bank of england is in 18 minutes. novo nordisk, this is one that is guiding higher for the growth for the year, so they raise

their full-year ebit growth forecast at 2% to 5%. so theyup from 1% to 5% are pushing themselves up the of what isrms expected. when it comes to the second quarter, earnings, 2.9% above the estimate. the ebit comes in at 13.8 4 13.84 billion. a lot of this is due to d stocking -- destocking. a little bit better than the market estimated. 10.63. the market priced in 10.65. that is a beach on those numbers. the guidance goes higher. in terms of some of the individual drugs, let me give you a hint of where the outperformance was. they chose the sales.

4.23. we are going to have a conversation with the ceo. that joins the bloomberg team. our guest joins us at 9:30 a.m. i was going to say, do you buy a bit of alt leisure? adidas or nike? which brand do you like? lululemon? nejra: i don't know what alt leisure is, but i am not that fashion forward. i like wearing athleisure -- is that what you are talking about? [laughter] is alt leisure, athleisure. give us some deals on combined ratios. remove from lululemon to combined ratios. before i do that, novo nordisk will pay a dividend. never mind leisure.

i am suitably chastened. 3.25. also leisure. athleisure.re, there you go. see the actually cannot combined ratio in the numbers. what i can tell you is that analyses is full year premium income of 54 billion euros. it did see 52. the second quarter premium at 12.83 billion euros, higher than the estimate of 12.57. the key line is they will not issue profit guidance for 2020. that brings me back to adidas because they are still not able to provide an outlook for the full year 2020. to go back, we are going to talk earnings with the cfo. that exclusive interview is after 7:00 a.m. u.k. time. insurers struggled to keep up

with claims as the coronavirus upends every aspect of our lives. in the first half as it booked a charge for claims related to covid-19. it is the latest sign of the toll the pandemic is taking on european insurers. joining us to discuss is the axa ceo. great to have you with us on the show. thank you so much for joining us. you have also withdrawn two growth targets and canceled your planned dividend. that is quite a lot to digest and it makes me wonder, do you think that things are going to get worse from here for the business? >> yes, thank you. good morning. clearly, we are in a situation of high uncertainty with covid-19. the question, is there a second wave or not? therefore, you have to be very cautious. when we come to the strategic

that given thear situation with covid and the impact on profitability and return on equity, we had to withdraw two of the four targets. however, our strategy remains clearly confirmed and when it comes to the dividends, we pay 50%. we have kept a deposit of -- a reserve of the second half, but our regulator has clearly indicated that there is a very high recommendation not to pay any dividends up to the end of the year, 2020, and we are obviously following this recommendation. manus: good morning. it's manus. with all of that in mind and so much uncertainty, you are reaffirming that you think it is 1.5 billion euros hit from covid for the full year. can you really be confident that that does not fit? you have litigation, you have

got a lot of headwinds. is 1.5 being very conservative or room for risk of reappraisal? theas: 1.5 billion has been first estimate and we have confirmed the matter as you said. 1.5 areons for the relatively clearly identifiable, so you have, for example, event cancellations. you know which events will happen, which will be canceled, so it is relatively easy to calculate. have got other events like business interruptions, where it is more difficult. we have a long history of being an insurer, and we are obviously taking our best estimates of what will happen, and therefore, we are confirming the 1.5 billion. going forward, there is the potential for a second wave, but at this point, this is our best

estimate and we feel very comfortable with that. nejra: thomas, let me just follow up on that then. you mentioned events. you mentioned business interruption. can you give us a sense in the business of where you might be seeing, at the very least, a little bit of stabilization, if not a recovery? is it more within events or more within business interruption or elsewhere? are still things that we need to process through claims havesee that happened. events have been canceled. there are certain interruptions. i do not see any recovery because these are claims that have definitely happened. where i do see recovery and a change, it is very much in the strategic lines we have been focusing on. when you look at health, the business has grown significantly. demand has gone up. when you think about recovery

and the future opportunities, this is clearly one area where there is future opportunity. look, you have got to run the business for the future. i know you are dealing with a crisis here and now. of your strategy is asia and china. given the security law in hong kong and the rising global tensions with china, do you want to commit more capital to china? is there a risk that the more you commit, the more risks you take for regulation and trapped capital? is a globalse insurer. we are operating in over 60 countries, and obviously, global and geopolitical tensions always create uncertainty, which is not good for business. however, our business is very focusingause we are

and serving local needs, for example, for retirement, health, his misses, and so on. with the exposition we have today, and we are the largest foreign insurer in china, we feel very well-positioned. it is a market with great opportunity, and we are continuing our engagement as we have laid it out. covid, aomas, during number of insurers were criticized for not covering enough operating losses. for example, with restaurants during lockdowns. are you getting a different response now in terms of how you have dealt with that issue at axa? hadas: quite honestly, i difficulties to understand where the criticism comes from. if you have a look and take the french markets, the french insurance market as a whole has committed $3.2 billion to its customers and society at large and also restaurant owners.

yes, one can say we have maybe not been fast enough at the beginning, but when you look at our response and when you compare this to other sectors, we are the biggest contributor to the social effort and honestly, i think this should be more recognized. manus: what are you most worried about in global markets, thomas? we are dealing with negative real rates in the states. we are dealing with bond yields crumbling around the world. perspective,arket what are you most concerned about? thomas: i am very concerned obviously about a further wave of covid and what does it mean for economies, since most of the states will not have an additional amounts of money to spend to help. secondly, obviously linked to

that, the question of how volatile will financial markets be because volatility is always bad for our business. effect ofnd enduring this crisis on the negative side whiche no interest rates, is obviously never a good message for customers that are saving for their retirement. and that is why, what i said earlier, our strategy of shifting away from financial risks going more to commercial insurers, going more to health and protection, exactly the right one. this covid crisis has confirmed and reaffirmed the strategic direction. ceo.: thomas bubert, axa we will have to leave it there but thank you so much for joining us today. great conversation. first word news with laura wright. laura: u.s. assets to crack down on chinese technology looked to be extending well beyond mike

pompeo is urging american companies to block applications from the app store. this so-called clean network guidance is not binding. it is an escalation. we want to see on trusted apps removed from u.s. app stores. president trump mentioned the , andng action on tiktok for good reason. with parent companies based in china, apps like tiktok and wechat are significant threats to american citizens, not to mention tools for ccp content censorship. laura: democrats are pressing for more concessions on pandemic relief ahead of the end of the week deadline to reach a deal. the chief negotiators have warned there is little time left to negotiate. the chief of staff says the administration has given more ground than the democrats. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.

nejra, manus. manus: laura, thank you very much. laura wright in london. coming up on the show, we hear more from anthony fauci. the interview. do not miss it. this is bloomberg. ♪ ♪

manus: it is daybreak europe. i am manus cranny in dubai. nejra cehic alongside me in london. it has been a frisky session so our. let's deal with the big story of the day. the rapid speed with which researchers are developing coronavirus vaccines, and it does not mean that safety is being sacrificed, according to anthony fauci, the top infectious disease expert.

speaking in an interview with david western, found she said he hopes the vaccine is at least 70% effective, but it is more likely to be 50% to 60% effective. he feels good about that. end inci: not durably the sense of truly putting it behind us. the classical history of viruses, particularly respiratory viruses, such that if they are going to be something that is as capable as this virus is of officially spreading from human to human, ultimately, if you really want to put the nail in the coffin of an outbreak, you can use a vaccine. however, and it is a big however, there are many things that we can do from a public health standpoint that can more adequately control this globally as well as mystically, and they are not particularly complicating things. they are things that we keep talking about. you know, five or six

fundamental principles, things like wearing masks universally, indoor and outdoor. keeping six feet at least distance. avoiding crowded places. outdoors always better than indoors. clear-cut, fundamental awareness of the need to wash hands as frequently as you possibly can, and stay away from places like bars, where you congregate in crowded places. if we universe the -- universally do that, and one of the problems we have in this country is that the understanding of the seriousness of this as a pandemic varies depending upon what demographic group you are in, because i have never seen an infection like this, where it goes from 40% of the people have no symptoms at , very heavily weighted

towards young people, who do really quite well. people who have miners symptoms, moderate symptoms, severe symptoms, hospitalization, intensive care, and death. >> what is effective in a vaccine? what if we get a vaccine that is 50% effective, effective for three-month or six months or something? then what do we do? dr. fauci: the percent effectiveness or efficacy, and then durability. they are really separate. one at a time. if we had a 50 -- i hope it is going to be more than 70%. even if it is 50% to 60%, a 50% to 60% effective vaccine is totally value-added if you complement it with public health measures. so give you an example historically, david. if you look at measles, measles is really an amazing vaccine. it is 97% to 98% effective. in effect, the only thing you

need to do with measles's vaccinate people, because the high degree of -- is vaccinate people. it gives an amazing degree of herd immunity to the population. whereas when you have a vaccine for a disease in which you can do public health measures to mitigate against the spread, you put those two things together a 90%would love to have effectiveness. if we get a 50% to 60% effectiveness, i will go good about that. with regard to durability, that is a different story. no question about it that if you get a vaccine, you are going to at least have several months protection to get you through a season. if it turns out that you get more than that, all the better. turns out you need to boost someone, that is ok, too. we can give a booster shot the way we do for other vaccines. matter,s a practical

who is ahead in this race as far as you can tell in finding a vaccine that would be efficacious? dr. fauci: it depends on what or mean by temporarily ahead efficacy ahead. there is no one ahead in efficacy because the proof in the pudding is that you need to do the large phase 3 clinical trial to determine efficacy and to confirm safety. that was our interview with anthony fauci, director of the national institute of allergy and infectious diseases. coming up, not so much the rate debate but the shape debate. the bank of england decision is imminent. this is bloomberg. ♪

nejra: the bank of england's rate decision is imminent. we are not likely to see any policy action with the focus likely to be the banks projections. joining us is the head of u.k.

rate strategy at hsbc. would projections, what you do around the pricing of the front end with regard to negative rates right now? >> expectations are certainly high that rates will go negative in the next few months or so. but i think, you know, obviously, yields are at a low. the bank keeps the dream alive of negative rates, then they will stay low. if there is any kind of disappointment in terms of timing or the likelihood, certainly, you would need to see the front end repricing. you have around 20 basis points of rate cuts priced in so expectations are certainly high. keeping the dream alive could take you into hotel california. check in and you cannot ever check out. isn't that a destructive risk? daniela: definitely. forecasting 10 year yields of zero for the year, and

of the year, yet they could go much lower than that if we get negative rates. if they do cut, it would really open up a range below zero as to where they could trade in the ecb has kind of shown us each themay be promised to be last but in all likelihood, we are potentially looking at a series of rate cuts, and given the preference, it seems to be kind of unwinding the balance sheet. it means we are looking at a very long period of low rates if that is the case. nejra: is that why you are owning the tenure outright? -- 10 year outright? isiela: the best thing duration. we can debate about how the curve may move in the very near term, and yes, it's likely to steepen up a little bit, but durations -- let's see what the bank of england decision is.

daniela russell, head of u.k. rates over at hsbc. for asee if they load up lower outlook. the morning from dubai and london. this is bloomberg. ♪ you doing okay?

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>> good morning. welcome to "bloomberg markets: european open." i am annmarie hordern alongside matt miller in berlin. good morning. matt: good morning. today, the markets say greed or fear. gold's phenomenal outperformance