annmarie: certainly has.g from new york back to london, i'm seeing as different things as how people are acting on the street, at least from my window in terms of mask wearing. everyone in new york was wearing a mask, and a little less and u.k.. in the markets, u.s. futures a little under pressure. risk offeing a little sentiment this morning although china is bucking the trend. up. csi 300 of you have a major driving city like l.a. saying they might lockdown. what will that do for demand? let's see what else we have. the bloomberg dollar index is rising a touch. relatively unchanged. havedollar of higher as we -- up higher as we have the deal clinched in brussels, edging closer. and i put gold in there because citi expects an all-time high. 30% probability the next three to five months, $2000 an ounce on gold. we will watch that closely. i will say it was a long slog watching it gate to 1800 -- get to 1800. to the eu story, because it is the top story for markets this morning. hardliners, it looks like, will

i'm annmarie hordern in london.y story and what is going on on the stoxx 600. we are down .2%. , bit of a global mixed picture equity struggling for direction ahead of the fed. the ftse and attacks are lower, but the cac is up nearly 4%. if we look at the sector picture, retail is the shining as kerie up 1.2% moremped and next is optimistic for the year. also, financials are up .2% today. we did hear from a number of banks, deutsche bank, a boost from the trading unit and barclays. shares are lower. citi expected more. matt: good morning. let's look at what is happening today in germany. the economy minister and the finance minister will be questioned by the bundestag's finance committee about their roles in the wirecard scandal. a special session which interrupts the summer recess will be held behind closed doors so we'll have to wait to get commentary from others after the fact. we will get brazil's unemployment figures for june at 1:00 p.m. london time today. country has been very hard-hit by the pandemic. a rise

annmarie: it's annmarie in london. thank you for joining us. your best guess how long immunity lasts for those who have had covid? if we were to see a vaccine, would it be something like the flu vaccine where you have to get one every season? kate: two questions. let me ask the second one. we think it is possible this will be like the flu, where you will need annual flu shots. pursuing the opportunity of trying to find a sterilizing vaccine. that is one where you are prevented from infection completely. 're exploring that but it's possible we will only find a vaccine that will reduce severity of symptoms and we will have to keep dosing to maintain that immunity. because you're right. we are not seeing evidence of long-lasting immunity from both people who have had covid, and we are seeing a decline in the antibodies that they generate as a result of infection. found, once a vaccine is how does the government approach the rollout, in terms of logistics, protocol, in terms of standards? kate: it's a massive, complex effort. so, we are deep in the

annmarie: welcome back to the european open. i'm annmarie hordern alongside matt miller. relatively unchanged. a headline they are going to ask european banks to forgo their dividends the rest of the year. lvmh under a lot of pressure this morning, down more than 3%. this is likely weighing on the index. sales slumped 38%, but beat the 42% slump analysts were expecting. many say this is the worst quarter for luxury and niklas is higher thisot morning as they decided to stick to their outlook despite the drag from the pandemic. i want to bring steve brice back and the conversation. this morning, autos are really breathing a sigh of relief. oomfot is giving a little to the auto space. when will they start coming back? you look at auto producers, they have started coming back. they've just been underperforming other areas of the market so from our perspective, we see significant andess in controlling covid people projecting we have a vaccine in place that is widely distributed or will be widely distributed in inner term, then it is difficult to project .utperformance to the

matt, annmarie? annmarie: thanks so much. banks, brewers, oil all coming up.ow corporate's react. european market open it next. futures a bit mixed ahead of the open. the open on the other side of the break. this is bloomberg. ♪ annmarie: good morning from london. a minute away from the open of trading. here are today's top stories. whatever it takes. stocks trade mixed in the fed leaves rates near zero. u.s. gdp do later is set to be the ugliest report ever. on tex gets a grilling capitol hill, lawmakers accuse the ceos of using their power to crush rivals and squash competition. all four companies report later today. it is an earnings bonanza. european companies worth $2 trillion report this morning. ceos this hour. i'm looking forward to these three executives, some of them have some big surprises in their earnings. matt: yes, absolutely. huge surprises. especially from credit suisse, all to the upside. we have a number of earnings coming up. we will see if that moves markets. futures are not doing much of anything. about zero point 1%. the live cash trade

this is bloomberg. ♪ this is bloomberg. ♪ manus: annmarie: annmarie: this is -- manus: this is "bloombergurope." between china and australia are ratcheting higher following hong kong's new security law. the australian prime minister, scott morrison, he suspended an extradition agreement with the city. we are going to cross to annmarie hordern. this is the new escalation. canada moved on this last week. this is the new move by australia. good morning. esty: we had camp -- annmarie: we had canada last week extending the extradition agreement. the u.k. welcoming hong kong residents. new zealand saying they are going to review their policy on a tradition but australia is taking this stance on both this morning, extending the expedition agreement with hong kong and also the prime minister, scott morrison, giving skilled migrants -- that is what he wants to do -- from the five-year visas with a pathway to permanent residence. as we mentioned, this is going to really exacerbate these tensions in australia and china. australia has been actively as well trying to lure hong kong-based businesses to

annmarie: thanks so much.g government has denied attacking free speech after banding a dozen candidates from elections on the legislative council. it came in day after police arrested four youths over social media posts. our north asia correspondent has investigated the ramifications in a new hour-long documentary "hong kong on edge." congratulations on this show. what is in store for the opposition after these latest moves? >> it is going to be pretty tough. four years ago, there were candidates disqualified for their platforms. this time, upwards of 12 candidates yesterday were disqualified, saying even more could be disqualified. the democrats were hopeful they could win many more seats. the legislative council has 70 seats, 30 directly elected. for september 6. this takes a lot of wind out of their sales after last year, they had district council elections where they won more than 80% of the seats and a rebuke of beijing. deadline for candidates to submit their nominations. the government came in. the elec

annmarie: it's a really good question. data today shows that inventories are 200% higher than a year ago. they are still fighting an uphill battle with all the inventory they built up. a billion barrels, a mountain of it. a stabilized price range where they see these green shoots, and possibly it is a moment they can take to increase reduction of it. already -- increase production of it. already, it was supposed to happen. this would be possibly one moment when it could potentially happen. the iea had a mixed report on friday saying that we are seeing pickup, but there is this casting of a shadow on the outlook about the disturbing reminder of the pandemic. one thing to keep in mind that will certainly be clear in the meeting, is that the prince is certainly going to insist that cheaters --e the iraq, nigeria, kazakhstan and angola, he will make sure those proposition cuts continue. guy: chinese gdp is out this week. how important is chinese data to get a gauge of what is happening with demand? chinese have been restocking

annmarie: you also talked about your key business in the latest report. keeping some of the big key empire in-house, and what other m&a do you think is potential this year? -- can thendustry industry do more m&a in this kind of crisis environment? alan: i would say our position on m&a has not changed over the last six months. we are disciplined looking at strategy, price, and timing, and if good opportunities emerge, we are in a strong position with error very healthy balance sheet , and taking advantage of that. the other thing we have been working on in the last quarter, we have announced our intention to unify the company, simplify the legal structure of unilever, and further down the road that could give us opportunities to look at more transformational acquisition. that was unilever chief executive alan jope speaking with annmarie hordern. coming up, we will continue the conversation on earnings season. this is bloomberg. ♪ >> i think the environment for retail investing has been pretty great over the last 10 years, frankly. retail has had to pay to

francine: annmarie, thank you so much, annmarie hordern without ruling.s will not see any potentially embarrassing documents from his banks and accounting firms. a push to reopen businesses ahead of the coronavirus only has modest gains, we focus on latin america and the wider picture with yacov arnopolin of pimco. this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance ." that get to first word news with leigh-ann gerrans. leigh-ann: the coronavirus crisis in the u.s. is showing no signs of abating. cases have top 60,000 for the first time -- daily cases have topped 60,000 for the first time. australia is tightening travel and reviewing its quarantine rules after a recent spike of cases in melbourne. singapore heads to the polls today as a ruling party since two extend its 65 year rule of the state. are beingecautions taken, including temperature screening and the use of disposable gloves. key issues include jobs and the economy, which are set to contract as much as 7% this year amid the coronavirus crisis. in poland,

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

annmarie: certainly not.tries are expressing concern, australia just the latest today, saying they will suspend its extradition agreement with hong kong, and they will be giving skilled migrants from hong kong five-year visas with a permanent pathway to residency. are concerned about the hong kong national security legislation with china. canada extended its agreement with hong kong last week. u.k. is also opening its doors to millions of hong kong residents. australia is taking it from stance, similar approaches in the stance against china. andtions between australia china have been icy recently. australia's largest by far, number one trading partner. we have tensions regarding with mine, where australia wanted to send investigators. china imposed tariffs, halting beef exports. want to watch. the australian dollar is up by .1%. and significant relationship, interesting to see the word being used. thank you very much, annmarie hordern, for bringing us that geopolitical look. looking broadly positive. surveill

annmarie: certainly.ike pompeo singled at the scene you over signing a petition supporting beijing -- singled out the ceo for signing a petition supporting beijing. a priority has been finding ways butunishing these banks, specifically hsbc was mentioned as a potential target. if some of these top advisors get their way with the administration, this could mean limiting the ability of hong kong banks to buy u.s. dollars. 2.8%.kong is down thiseep in mind that proposal has not been elevated to senior levels of the white house. it faces a lot of strong opposition within the administration. it is said it could hurt the u.s. financial system much more than it could hurt china. we should also note that hsbc declined to comment on this story. matt: i want to point out that you are a very transatlantic reporter. you normally live in london, but you are american and you are there now. barclays has reportedly reached out to candidates to replace the ceo jes staley, formerly of jp morgan in new york, now at barclays

annmarie: at the moment it is. matt: unbelievable. anna: not from friday. we have not been able to go into a grocery store here without a mask for like, four months. this is bloomberg. ♪ businesses are starting to bounce back. but what if you could do better than that? like adapt. discover. deliver. in new ways. to new customers. what if you could come back stronger? faster. better. at comcast business, we want to help you not just bounce back. but bounce forward. that's why we're helping you stay ahead and adapt with a network you can count on, 24/7 support and flexible solutions that work wherever you are. call or go online today. anna: welcome back to "bloomberg markets: european open." 30 minutes until the start of the european trading day. european equity market futures suggest we will see a bit of weakness at the start of trading. u.s. futures look fairly flat. let's take a look at some of the events that could shape your date. the u.s. secretary of state, mike pompeo, is in denmark for talks. nord stream 2 will be one of the subjects on the agenda. e

annmarie hordern somewhere in europe. is looking into that.stion i ask myself is -- the delicate balance. that demolition and demand. it is folly to believe that you will ever get back to the 2019 revenue. put is the risk that they this oil back on the market and we get a tantrum? risk.i think it is a real centralhe analogy of banks in terms of trying to in managingclarity expectations of the marketplace with more transparency. i think you are also right, manus. a recovery in the stock markets and in various sector errors. i think where we will have more economic scarring will be in those areas which will be slower to recover which will be some of those heavy oil consumers especially transport. of all of the sectors coming back online, to go back to 2019 hundred percent capacity, the transport industry will struggle. the consumption for oil is going to be slow from that sector. if we bring on production to quickly, you could have a lot of sensitivity to the price. is the final roundup of some of the pieces of the jigsaw that we of look at toda

let's bring in annmarie hordern to talk a little bit more about this.g, -- the short interest in tesla is far more than the total market cap of fiat chrysler. annmarie: yeah, it is on the verge to be the first hit of $20 billion according to s3 partners. in a report they put out, they are saying that tesla and the company developing the ev truck, they are looking like candidates for a short squeeze. tesla, more than a 200% gain this year alone. likely short-sellers have hit the limit for losses. this is the value. you look at the percentage here that is outstanding, tesla is at 9.5%. there are a lot more heated stocks in the u.s., like american airlines. but elon musk has been toying and poking fun at the short-sellers this past weekend. he made good on his promise, producing a pair of short shorts to mark his triumph against these investors betting against tesla. they are on sale. they have been sold out. a bunch of people have been buying them. they are some $70 u.s. dollars. anna: very nice. what about the companies here in europe and the short inter

annmarie: where do you want to start?ain on the relationship is coming from a number of directions. on the culture, the national security front, this has to do with tiktok and wechat. peter navarro says he expects trump to take action against the apps and says will they are engaging in information warfare against the u.s. he didn't rule against banning them. tiktok has anna -- denounced these allegations. navarro ruled that out. the white house isn't the only one that saw corporate america looking at tiktok. wells fargo asking employees to remove the app from work phones due to concerns about concert -- security. then there is the politics and trade side when it comes to beijing and washington. friday on his way to florida, donald trump was talking to reporters on air force one and said a trade deal -- phase two is not under consideration. breakdown between countries over the year. one thing i am looking at is the south china sea, the administration plans to make an announcement regarding the south china sea. we see a com

nejra: in reordering, great work. -- annmarie hordern, great work.r than what was initially tabled. european futures in the green. the european open is up next. this is bloomberg. ♪ >> good morning. welcome to "bloomberg markets: european open." i am anna edwards alongside matt miller in berlin. matt: today, the markets say it is a deal. a 700 50ers agree billion euro coronavirus recovery package after more than four days of tense negotiations. european futures point two gains at the open. the cash trade is less than one hour away. anna? what wet's linger on heard from ubs this morning. my colleague, manus cranny, spoke to the ceo of ubs, sergio ermotti. numbers coming in better than expected. there is even talk of a share back. well, andrformed very asset gathering businesses were very engaged with clients and i think that is, you know, during of course, there was a mix seeing the fruits of our investment and technology being front to back. also the value of -- was very important, so on that side, i would say that the effects to business, rates, and

joining us now is annmarie hordern. it is on the table at this meeting? deciding whether or not to keep 9.6 million barrels a day off the market or allow some of the supplies to come back on as originally planned when they struck the historic deal. this was supposed to happen after june. they decided to extend them. that would taper the cuts of boosting production to around 7.7 million barrels per day. they see demand recovery gains contraction. some sources are leading toward that tapering. also we had shipping schedules already set for august, so when he or saying that so many are saying it is more or less -- so many are saying it is more or less locked-in. of course the worry is that if they start to taper and the market is still too fragile. we see concerns about pockets of resurgence of coronavirus cases around the world. whether or not you look at what is happening in florida or hong kong or tokyo. the worry is that if they do this too soon, what does it mean for the price and could we potentially see a crash again? yousef: thank you very much for t

joining us now is bloomberg's annmarie hordern. talk to us about the significance over this latest development. >> it was the split reading. when many people were wondering whether they would be able to see the financial records come it will likely not happen anytime before the election. the first part of the ruling was the supreme court backing the new york grand jury's bid for donald trump's records. --s quote stood out to me 200 years ago come a great jurist of our core and established that no citizen, not even the president, was above the common duty of providing evidence when called upon. this ruling was a victory for the manhattan da. they may be able to get their hands on president trump's tax returns but that does not mean that the public will see them. the supreme court blocked for now the house subpoenas that might have led to the public release. is a win prism, this for president trump. shielding the president. president trump was on twitter blasting the supreme court in numerous tweets was -- he was calling himself a vi

tracking the story is annmarie hordern. details on this, we know that environmental policies are in the forefront, but it is the timeframe that matters. alsorie: yes, and it is the amount. he is really putting the green in this green deal. it is a lot of money and it is quicker. his plan is to address $2 trillion over four years in green energy. that is a massive jump from the more modest one point $7 trillion over 10 years that he had originally proposed last year when he was campaigning for the nomination. includeshis proposal setting a clean energy standard .y 2025 it is also going to look to put more americans behind the wheels of ev's. enticing them by cash vouchers. also, it is a big nod to those in the democratic party who towardview this as a key moving the party and their agenda forward. washington to the governor jay inslee and senator elizabeth warren. in sleep focused on climate change during the campaign. he proposed 100% clean electricity standard by 2035 and warren later endorsed it. we spoke about this chall

annmarie: good morning. we heard from asos, the fast fashion retailer.rally outperform the store-based retailers during the pandemic and they expect profit to hit the top end of market expectation this year. recent months rose 10%. incrementalite the covid-19 costs 10 they see this european bounceback. they have a call later this morning and after the allegations of labor exploitation and factories, which weighed on shares, that is something we want to see if asos is possibly going to comment on. that is something that esg investors are looking at. then we have burberry, the luxury industry really totally different when you look at luxury versus online every it the majority of luxury sales come from physical stores, so burberry this morning, they did report retail sales falling 45% in the quarter, which was like the better than what was expected, but as the company has struggled with sales during the pandemic, they are looking at a cost savings to reorganize the company. that will mean new savings of 55 million pounds. finally, asml. this is really a ste

annmarie hordern has a breakdown. annmarie: i want to kick it off at swatch.ime the company is not profitable. not really a surprise as they have had to shut about 80% of stores or sales outlets during the lockdown. they reported an operating loss of 3gh june. analysts looking at a loss of 160 million francs. june was a. bit brighter. they are seeing profitability. thanks to sales and mainland china. reported last night they boosted outlook and already trading higher. they see second-quarter revenue significantly above estimates. for o cotto, retail sales jumping 27%. pointing tos are the downside. we are expecting to play catch-up with the u.s. u.s. session was certainly negative yesterday. watch for that to be the team early on here in europe. chinese stocks have been paring their losses as we approach the start of the european trading day. u.s. futures also look increasingly positive. they have gone flat fro -- from flat to up half a percent. this is bloomberg. ♪ - [announcer] imagine having fuller, thicker, more voluminous hair instantly. all it takes is j

joining us from or is isomberg's -- four more bloomberg's annmarie hordern. >> president donald trumpnnouncing yesterday a surge of federal agents he will be sending. oft this is is an expansion operation legend, which he announced earlier in the month, worked alongside the police department. president trump was trying to draw a line and said really the tone of the message was "law & order." many are questioning, is this really about policing or law enforcement or more about his reelection bid? in november, he wants to be seen as the candidate of law & order. he has his eye on the cities of chicago and albuquerque in new mexico. nejra: thank you so much. let's get to the first word news. deficit isa's budget set to hit a post-world war ii record. the shortfall for the 12 months next june will be around 132 billion u.s. dollars, more than double what was for the last year. that is according to the government's economic and physical update. it comes amid a sign in spending. global coronavirus cases have topped 15 million. the u.s., brazil, and india are the three worst hit countries and

i am annmarie hordern. busy show ahead. matt: very busy show indeed.ets say bring on the numbers. we wait on earnings from barclays, from rio tinto, aston martin, and more. we will bring you a host of top interviews before the start of cash trading less than one hour away. we have jes staley, the ceo of barclays, going to join us in just about five minutes time, and we have got the cfo of a $13 billionr loss, but first, the chief financial officer, james von moltke from deutsche bank. the investment bank overall, which is up 52%, and the business is up 42%. we have trading businesses which are rates, fx, emerging markets, which as you have seen with our peers, they are up significantly year-over-year, a little over 75%, and in the rates complex, we have now doubled our performance year-over-year for three straight quarters, so very pleased with that performance. of course, part of it is participating in the better market opportunities that have existed in this second quarter, and we expect a normalization of that. but

--ister cormann: annmarie: minister cormann: i have been the finance minister for the entire time of government ands a fiscal position as a result of the budget prepare after 6.5 years in government. certainly take a level of satisfaction out of the fact that australia and australians are in a stronger, better and more resilient position as a result of the work -- as a result of the work we did. i do next, i am here until the end of the year. we have a budget to deliver in october. we have a budget for christmas and 100% focused on the job at hand. at the appropriate time i turn my mind to what's next. go,inda: before we let you under what consumption would you fast track personal tax cuts? budget isormann: the on the sixth of october, in the lead up to the budget we do what we always do, we review all the economic data, all of the information an opportunity to adjust policy settings to provide the appropriate incentives and the appropriate support to the economy as required. we will be doing that today. we will do that over the weeks and months ahead. when i asked you earlier about

a mixed bag of sectors for annmarie hordern to cast her eye across. pulled out the names we expect to move to the upside. daimler had a recovery in demand late in the quarter which prevented it from losing as much money as analysts expected. the consensus for 2.1 billion euros. as businesses reopen, things are uneven. streaks for car sales in europe. coming back more slowly in china. the big question is whether demand is improving fast enough to make a meaningful difference for the entire year. anna: absolutely. moving onto a fairly resilient story around ericsson. -- telecompany equipment is very salable at this point. >> particularly when you think about what is happening with huawei. colleagueoke to our in the last hour from ericsson -- he said they had the capacity to compete with huawei. they really have been able to weather the storm of the coronavirus better than expected after phone companies cap spending to support networks that were more strained by a surge in home working and streaming. estimates that the calls are looking higher for them a