produced back in the day. who would've guessed they'd still be building the mustang 50 years later? so as fun as those days were, the best days are still to come. >> legacy is still here. >> legacy is still here. [screams] good morning, everybody. travel in turmoil. british airlines and travel operators lead declines after the u.k. makes an overnight decision to reinstate it's quarantine >> we risk reinfection to the u.k. and second wave here and

then another lock down >> it will not cut it's schedule branding the decision regrettable. the low cost airline posts a smaller than expected loss for the first quarter. >> acquisition, sap shares jump after the german software giant said it will float qualtrics just a few years after buying it for $8 billion republican lawmakers reach a deal in the next relief bill in a move that will handout payments as well as commit to 70% wage replacement helping to push u.s. futures higher in early trade. a very warm welcome to street signs we closed out with the flash pmi

for july which showed the recovery across europe and now we have the data coming through. the german business index. the german business morale rises in july. that's the headline. the business climate index came in at 90.5 that was ahead of forecasts. economists were looking for 89.3 that's 90.5. the current condition index, that came in at 84.5 in july that was a touch below expectation. the current index slightly below but the business climate index slightly above now in terms of expectation, this is the real encouraging message. the expectation index came in at 97 in july versus forecast of 93.7 the german economy is recovering step by step the expectation index from june

revives 91.6 that's a better than expected jump in german business morale for the month of july and that seems to confirm the improvement that we saw in the flash numbers on friday. there's a look for you at the euro trading quite firmly versus the dollar already in the run up to this data >> pictures saying that they are seeing the german economy set. it was extremely badly hit and it's seeing a significant improvement in business morale in july.

a very strong surge was back in positive territory when it comes to trade the recovery is taking momentum. the construction sector is also doing a lot better than before closer to q-3, that's what the economist is saying that this highlights a good start to the third quarter and that optimism is gradually returning to german businesses i guess all in all this is positive news for the german economy starting as they are saying the first quarter if you do business here on the ground in germany, it does feel that there is major improvement. not for everybody. it's now taking and enjoying the pick up in demand. it remains to be seen how the

middle class and smaller s&p sector is after the crisis because they're still feeling the brunt of prices given all the disruptions that they are facing but to sum it up, the eck peckati -- expectations are at 97 better than expected business climate is better than expected and it is official the german economy is recovering step by step. >> one of the main concerns out of friday's pmi for germany was the labor market the on going cuts in the manufacturing sector we're not going to get that grande you lairty in today's ethos survey but what is the latest in terms of expectation of when these reduced working hour schemes wind down, what the employment picture is going to look like in germany >> nobody knows so far companies make these short-term working scheme which is the labor market which was very

successful during the last crisis they were just reducing getting subsidies from the state i guess if we are going back to a certain level of trade right before the crisis. the recovery is doing well enough that most likely not too many jobs. and we have to see a change for example. and they will not go back to a same amount of jobs and most likely the travel sector as well so i guess there is a silver lining on the horizon when it comes to the market development but there's also a down side risk especially for those factors. >> and on a stimulus front we know that in addition to a

european recovery fund that's been agreed, the german government itself has agreed on stimulus to try to support the economy so when you think about the impact of stimulus on mitigating job losses, what sectors are poised to benefit from this stimulus >> i guess it's all of these sectors which are, yeah, future technologies because that is where the stimulus is aimed toward it was a bit of a surprise to see that not too much stimulus, for example, for the sector like a traditional combustion engine and previously they were always protected by the government. and that was not the case with this round of the fiscal stimulus we have currently seen so i guess as i was saying, all

of these areas would benefit the most but also there's a lot of support for the service sector as we all know the shutdown was hitting this hard. that's what i guess we're getting in terms of a fiscal stimulus a lot of headlines around a resurgence in various parts of europe including in germany. considered a local lock down what is the latest on the ground in terms of the feeling around germany's control of the situation. is there still a lot of confidence in the german response. >> there's still a lot of confidence it's what they call infections and they are very good at

tracking those hub beds of infections currently i think that we're going to hear from the bovarian prime minister, how they're planning on managing the crisis because it's mainly helped us in the agricultural business that are effected in this area and i will say there will be a press conference with the prime minister who is going to stretch out his plan in general, germany is most concerned from those coming back from holiday this might be one of the issues currently discussed in berlin. to have a check for people coming back from spain and you probably have it in the u.k. i

guess that's one of the issues currently but nothing yet. >> thank you so much for flushing out the numbers and the broader picture of what's happening in germany. >> president of etho institute, thank you for joining us right on the back of this fresh data, looking at the numbers, it seems that the recovery, the momentum, the morale in germany continues to improve in july is the data as encouraging as it looks or are there reasons to be cautious if we look a little bit under the hood. >> there's reasons to be cautious we don't know what's happening in the autumn. what the second wave will be whether there will be one and so on but overall, it's certainly positive particular expectations and pessimism that we had in may is going away the current business situation

is still quite bleak but the economy is recovering. >> concerns around the labor market and how are businesses feeling in terms of the jobs outlook. >> companies are still expecting to dismiss workers on balance. it's still manufacturing companies. and see that the recovery there is probably slower than in germany. and domestic market and in china, for many companies the most important market the recovery is underway so it's a mixed picture abobut labor market recovery will still

take time. >> there's a lot more concern mounting in recent weeks given the u.s. response to the outbreak and rising virus numbers there. what does that mean from germany? >> that is a reason for concern at the same time we have to see that it's very diversified. it is especially for the car industry it's involved in about -- in the car industry, a lot of production for the u.k. market takes place in the u.s. itself, in mexico. so the impact on the german economy is limited it's a very important market it's only one market among men. >> you mentioned the outlook for business spending that companies are still feeling uncertain about the future

>> well, we have actually asked businesses when they expect the situation to normalize and most businesses say it will last ten months, 11 months, or maybe a year so businesses themselves are not expecting normalization of the situation any time soon but they are watching markets closely and as opposed to some of them will start spending again trying to prepare for the upturn that will come at some point. >> if i can change that a little bit, widen the conversation out, chancellor angela merkel was in the spotlight for brokering the european recovery fund deal which many have called a game changer for europe what had been the german response from the business community to angela merkel's role the chancellor's role in this but the overall recovery fund. >> overall, it's been mostly

seen as a political signal of solidarity of the ability of the youth to act in this crisis. at the same time, a lot of people say caution is warranted so this money will be spent maybe in 2021-2022 or most of it even later at the same time it is clear that the recovery will mostly depend on national economic policies and on the willingness of the countries most effected by the reform to change their economic policies to introduce reforms. the recovery fund does bring a lot of money but it will not end this crisis. >> getting the health situation under control and germany someone of several countries in the eu that's been in the headlines this weekend because of a resurgence in cases

germany has been very strong relative to other countries. that's the perception anyway what is the outlook for the virus in germany are we going to continue to see this lock down to address the issues >> i think that's an open question we are going to see this local lock downs there are fewer people traveling abroad but there's still quite a large number so we have debates. there clearly is a risk that we would have more widespread outbreaks and that may also endanger the economic recovery still the hope is the expectation is that maybe tests will be introduced for people coming back and the outbreaks will be locally limited and the action will also be local so that we can avoid another larger shutdown.

>> it's justification for reintroducing the quarantine measures. >> as you can see there, we're seeing a significant negative reaction across travel stocks this morning with u.k. airlines. down about 11% and now about 9% lower a pretty substantial hit what this means not just for the travel industry but the outlook for the virus more broadly on the continent and across europe. charlotte now joins us with more on the developments across spain.

what is behind this resurgence in cases and how has the spanish government reacted to the u.k. government reimposing this quarantine. >> you'll remember spain reopened it's boarders on june 21st the tourism industry being hugely important to the spanish economy making about 12% of the spanish gdp. and particularly important to that sector. this announcement this weekend from the u.k. government and people come back from spain and to the spanish economy, it will be safe to come to spain and you'll see other european countries but they are under control. these measures coming from the u.k. government followed some other measures taken by other countries.

and people come back from spain and avoid traveling to catalonia in particular. addressing these concerns and locally compare the situation to february and said things could go either way. we want to avoid a march scenario where it gets out of control and particularly younger and they want to take all measures to avoid confinement so here's the situation very much being kept from the authorities in spain but again the spanish government is trying to reassure people saying they are keeping a situation and measures are being put in place to give you an idea of the situation

886 new cases in the past 24 hours alone. so there's a situation so neighbors countries watching this nervously 12% of gdp it's the latest measure in particular. >> thank you so much for reporting. grappling not only with the fall out from the decision with the u.k. government. a 185 million euro loss for the first quarter. better amid the pandemic than analysts fear. 99% from the year before with revenues sinking 95% to 125 million euros. the company described the quarter as quote the most challenging in ryan air's 35 year history it expects losses to narrow in

the second quarter but declined to give longer term guidance ryan air ceo said that the current target of 60 million passengers for 2021 fiscal year is tentative and could quote go lower. >> coming up on the show, big tech ceos get ready to testify in front of the u.s. congress this week. we'll discuss what to expect after the break.

they have not been offered but sap ceo says it's a win-win opportunity and they are, quote, in it for the long run. >> an all star line-up of tech ceos is due to testify virtually before u.s. congress later this

week to discuss this, director of european media at city joins me now. thank you for joining me a lot of debate in the market over whether the valuations were justified and now we're looking at major tech companies testifying over their competitive practices. do you think this could be a watershed moment for tech? >> thank you for having meon what i would say is probably need to take a step back

interestingly. and there's also others across the markets in europe, for example, we're looking at moving beyond to actually create more specific rules so i think what we're seeing is its a means to manage big tech. is it the correct means or is it fit the purpose nowadays because tech is certainly evolving much faster than regulation but we're seeing some regions, europe in particular thinking about specific rules around big tech >> we tend to group big tech together and talk about them as

if they're one entity but each of these companies is operating a slightly different part of the tech world i have been reading around the expectation for this congression congressional testimony and some people are saying this will be soft given not only what is happening virtually but they'll be testifying together along side each and they operate such different parts of the world >> i think the title itself is how it's influencing antitrust competition but also that so i think that we need to actually just look at how complex it's becoming and to have many other

views going on in the market it's important to think about the start of the regions so if you think about europe for example we lack big tech platforms. there's a huge focus on access of data. and that requires access to a huge amount of data. so in europe how do they find the data at the hands of the big tech companies so we're seeing europe lead the regulating charge. the u.s. is probably more challenging because the more they impede the big tech platforms in the u.s. does that then have a knock on effect to the overall position

there's a more complex situation. >> it's interesting what you make about europe leading the regulatory charge when we know that europe lagged both the u.s. and china when it comes to creating these innovative big tech players and when we talk about the broader european market and the scope for europe to outperform the u.s., the biggest bear point is that there are no titans in europe. >> it's an interesting point and europe is clearly, clearly pushing the regulatory front arguably they have unintended consequences increasing the dominance of big tech. it has lead to gdpr like regulations globally but it's

also lead to lots of focus on data globalization and some markets and obviously in europe it's completely unacceptable i think one of the key points and these would be important in the views going on is actually around enforcement so what has become clear is there's lots of positives to come out of it it's increased consumer rights around the data but there appears to be a lack of enforcement and if you look at the reason why it's a very, very complex piece of regulation and also the data protection authorities in europe when you look at that position and funding relative to huge cash

piles. so that's going to be key to whether this could make a difference coming up on the show, a sign of the times. tensions with china worsen

>> british airlines and travel operators decline after the u.k. makes an overnight decision to reinstate quarantine on travelers from spain >> we must be able to take swift decisive action or we risk reinfecting the u.k. and a second wave here and another lock down. >> but the stoxx 600 cuts losses after europe's largest economy is recovering step by step german business morale improving further in july. >> expectations that are

improving so this pessimism that we had in april is going away. the current situation is still bleak but the economy is recovering. >> it will not cut it's spain schedule branding the government decision regrettable as they post a smaller than expected loss for the first quarter >> sap shares jump after the german software giant says it will float qualtrics after buying the firm for $8 billion. >> we're about an hour and a half in and we did open on the back foot.

but we bounced off the lows and we have patches of green on the board here the spanish markets with a 1.3% hit this morningso a bit of cautiousness coming through. contracting about 1.4% let's take a look at the markets one of the big stories has been a dollar trade

up a further 0.45% this morning. the dollar index logged six days of continuous decline. so a lot of optimism on the european side on the back of the european recovery fund approval. the pound up about a third of a percent to 12830 let's get a check on how wall street is poised to open up. a modestly positive start. no major moves there but we're looking at it. the nasdaq, the tech heavy index meanwhile logged it's second negative week in a row so the tech heavy index coming under a bit of pressure. now the u.s. has closed it's conciliate this is a story we have been following. we have been following the escalation of tensions between washington and beijing and this closure has come after the

beijing authorities were forced to close in houston. we have a statement from the foreign affairs ministry saying authorities took over the premises shortly after the conciliate closed. now industrial profits in china grew at the fastest rate rising 11.5% in june. it's the second consecutive month of growth. >> jumped 11.5% year on year in the month of june compared to may's 6% rise it's certainly consistent with

the data out of the quarter. this is mainly down to falling costs and improving profits in the industry such as steel, oil and gas. we are seeing a spike in cases in countries around the world as well as further lock downs and that could continue to weigh on export orders so there's still concerns about just how sustainable this profit growth is moving forward. but broadly speaking the recovery has been uneven we have seen industrial output certainly offering relief but consumption is still lagging this recovery and there are concerns about jobs and interestingly there is a article out today saying that thousands of state owned firms and local governments are expanding hiring to help graduates secure jobs in a market severely impacted by the virus.

and we do know that job stability is key to political stability in sidney back to you. >> on the health care front, 472 million dollars in fresh funding from the u.s. government it remains on track to deliver around 500 million doses and possibly up to 1 billion by 2021 the additional capital brings the total funding to 955 million dollars. the german bio tech group announced its attention to list in the u.s. as the company continued testing it's coronavirus vaccine. it comes shortly after they took a 10% stake in the company

he said he would purchase 100 million euros in share as part of the listing they are expected in the fourth quarter of 20. let's bring in the head of health care strategy great to have you with us. with so much excitement, it's interesting to see the market reaction in health care on the back of virus news rising a week or two ago right in the lead up to the yuniversiy of oxford data publication but many others have pledged to make their vaccine at cost. they're not going to profit from the vaccine. so how justified is it that investors put money into these companies when they're not poised to benefit from vaccines and treatments

>> i think the broader question is when will the vaccine produce and can we get back to normal as an economic perspective? we are fairly worried about the run up in stocks because we think they've gone a little bit too far. >> and astrazeneca, again they are planning to produce this vaccine at cost, not make a profit on it but when you think about the reputational impact of being part of a vaccine that could effectively help save the world from this pandemic, what does that mean down the line for a company in terms of opening doors to more funding and more public interest. is that getting investors excited at these valuations which you're imlying look stretch? >> there's also the drug pricing

again on friday. this argument is that it is highly innovative. so it's currently the world's biggest problem. obviously it's quite a big deal when it comes to that. >> and when we are looking out for phase three data now from the university of oxford, astra zeneca will be getting more advanced data from other companies as well. one of the big issues is as countries around the world get a better handle on the outbreak it's going to take longer to test the vaccines from a regulators perspective, i'd say that everything is on the table but one of the things that we're concerned about is

its all at breakneck speed and we need to see the data. >> what does that mean for vaccine availability if we're not going to get that data until next year. >> that's the challenge with manufacturing. they're all done biologically. but the manufacturing caneed wi depend on the vaccine candidate and hopefully we'll get a hand full of successful vaccine candidates more than one. >> what is going to happen to all the capacity that's being

built right now to manufacture these vaccines we know that it's being built out for all of these vaccines effectively that are in late stage trials and we don't know whether they're going to prove effective or not so what happens to all the infrastructure. can it be easily converted to perhaps contribute to the vaccine that does prove effe effective or is it wasted capacity. >> one of the things is doing a boost strategy which means you have one type of vaccine and then the second type of vaccine. >> they have the vaccines and that's very different from manufacturing and adenovirus for instance there's different sorts. >> when it comes to your health

care strategy, what do you see as the most attractive infestments at this point. is that a stock that you're interested in? >> a lot of the small names. we're looking at two things. resilient growth so big companies with decent earnings growth that will continue despite what happens in the economy and we're also looking for disruptors and innovators because one of the things that has come out of this cry sisis have made five years progress in five months in terms of market adoption so the world is ripe for efficiency gains made by companies with new digital health and technological approaches to health care. that's one that we're pretty excited about in the small and mid cap end. >> and you mentioned the renewal of focus on the pricing debate

on friday. we're now less than 100 days away from the u.s. election. health care features as one of the key events for voters. what is the outlook for this time around? >> well, so i think health care, health care would be front and center i guess it is front and center but not politically right now. we do think that we'll get some kind of legislation on drug pricing but not before the presidential election. and then of course it depends on what the shape of congress looks like post the election but don't expect drug pricing discussions to go away but i think they will be monetized. >> thank you for sharing your insight. coming up on the show, a gop break through. white house officials say they have agreed on a new trillion

dollar coronavirus relief plan we'll have more analysis after the break.

>> a memorial for lewis took place in alabama this weekend. >> one foiinal journey through selma, alabama. >> thank you for accompanying john to selma one last time. >> it's only fitting that this be part of his home going. selma. the city he helped thrust into the national conscious he and so many others beaten to the ground as they marched for the right to vote. over the years he came back repeatedly to mark the anniversary of bloody sunday, most recently in march as he battled cancer

>> she was on the bridge with him. she was just 8 years old. >> as i looked down i could see hundreds of policemen with tear gas masks. hundreds of state troopers on horses >> the next generation of leaders here because of him. >> i strongly believe i would have never been elected to office in this day and age so they opened up a door that has not been closed. >> and from hundreds more that never met the congressman but say he touched their lives so with all of them watching just as he did 55 years ago, car he ascended the bridge one final time his family walking behind him in the same place where alabama state troopers nearly ended his life, today they stand and salute his words spoken years ago -- >> we're tired of seeing our people locked up in jail over

and over again how long can we be patient >> for many still echoing today. >> he has left me the importance of having courage, standing up for what's right. >> can't you hear him? never give up. never give in. keep the faith keep your eyes on the prize. for john and our nation, let's make him proud >> meanwhile in terms of the latest on the coronavirus, florida has reported new cases over the weekend it's overtaken new york and is now just seconds behind california with the highest number of infections this comes as a growing number of u.s. states order people to wear face masks in public to prevent the spread of the virus but the florida state governor

said he will not make them mandatory and instead, vowed to reopen businesses and schools in august the trump administration says it has finalized plans with senate republicans for a new $1 trillion coronavirus relief package. it will include a extension to unemployment benefits, a fresh round of direct payments to americans and tax credit for small businesses the plan which still needs to be approved by congressional democrats is expected to be unveiled early this week tracy, how does this proposal stack up to expectations >> well, it's what republicans said they were going to come out with it's very different than the $3 trillion proposal the democrats have approved but now comes the negotiations and a big part of that is what to do about

unemployment that's expiring this week. the white house is saying they may need to come up with something temporary so people don't lose the $600 a week bonus checks from the federal government but republicans don't like the figure. they want to reduce the $600 a week bonus some people are making more staying at home than they were when they were working the white house proposed 70% of regular employment as a benchmark but that could be difficult for some states to administer given their antiquated system. they consider this a 30% pay cut during the pandemic. there's also an extension of

eviction protection for renters up in the air this week. there's 12 million renters at risk of losing their homes if that doesn't happen. >> and tracy, what is the time line just clarify for us for this bill getting through >> so it's sort of a series of time lines unemployment needs to be dealt with this week but republicans made it clear that they want to break this up over different committees and different parts and there's some parts of this that could take weeks to negotiate. but it's still not clear what they'll do before that runs out on friday. >> thank you for breaking it down for us. >> now this week is said to be one of the busiest of the

summer republican lawmakers are expected to unveil that trillion dollar relief plan and they'll testify in a house judiciary anti-trust committee meeting on wednesday we also get earnings from alphabet, amazon and facebook along with key pharma names. let's take a look at u.s. futures and where we're poised to kick off the week on wall street green across the board there the dow looking to open 42 points higher if the levels hold that's it for today's show worldwide exchange is up next.

>> it is 5:00 a.m. and here is your top five at 5:00. fasten your seat belts wall street bracing for one of the most critical weeks in months the stocks try to regain lost ground apple, 3-m, amazon and many other games on tap. >> drama in d.c., republicans ready to roll out their latest proposal to try to keep the recovery going and incomes coming in. tensions