this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg ."es, 43 minutes into the session right now and looking at losses. the ftse down 11 point. in paris down 0.5%. let's get the bloomberg business flash. deutsche bank is paying new york's banking regulator $150 million for a string of compliance lapses related to convicted sex offender jeffrey epstein. the regulator says the bank failed to detect or prevent millions of dollars of suspicious transactions. deutsche bank says it deeply regrets its association with epstein and is cooperating with the authorities. out tos has reached potential candidates to gauge their interest in the top job. long-term part of a succession plan to replace chief executive jes staley. sources tell bloomberg no formal search is underway but jes staley couldn't leave the lender as soon as next year. there is increasing activist pressure to replace him as ceo for, a monger things -- among other things, his previous relationship with jeffrey epstein. boeing has settled 90% of the wrongful death claims over the crash

this is bloomberg. ♪ yousef: you are watching "bloomberg surveillance." am yousef gamal el-din in dubai. tesla has overtaken toyota as the world's most viable automaker, shares in the electric car company have doubled since the start of the year, giving it a market capital of over $207 billion. inre is still a massive gulf manufacturing numbers. in the first quarter tesla produced 4% of the number of cars made by toyota. daimler says the car industry faces painful cutbacks over the economic fallout of the coronavirus pandemic. the german company's chief executive is warning of drastic salary cuts, saying they are necessary to protect daimler's finances and safeguard investments. executives will face bigger reductions than rank-and-file workers. britain's financial regular says firms should be preparing for a no deal brexit. the financial conduct authority says the breakdown in talks could disrupt equities and derivatives operations. it warns to have arrangements in place so they can continue serving european clients. that is your bloomberg business flash.

this is bloomberg. ♪ ritika: this is "bloomberg surveillance," with the bloomberg business flash. cut 2400 ever,ing the third loss cutting 43%. the company forecasts the industry will recover quickly. operationsusting because of the pandemic, pushing retail staff to work remotely. programe started a which will allow retail and corporate employees working remotely to take coronavirus tests at home. lady gaga is back on top. she was the biggest popstar in the world this past month, according to bloomberg's rankings. was therecord best-selling album in the u.s. that is the bloomberg business flash. tom: i cannot believe that. , really, social impact. boe, not just about raising interest rates. there can be other discussions. one of them can be how you set the interest rate every day. the mechanism, for years, decades, has been libor. our conversation with john williams of the new york fed. here is the governor of the bank of england. steps thatlaid out need to happen. we need to set clear -- [indiscernible] you may have seen my remarks, there is no reason we believe, --er march next

this is bloomberg. ♪ francine: this is "bloomberg surveillance."ncine lacqua, here in london. that's get to the bloomberg business flash laura wright. has moved up -- they were largest tech company a stock split after shares emerged 80% in the past year. the next iphone will be delayed by a few weeks. facebook is rebounding from a pandemic drop in digital advertising. second-quarter results topped estimates with revenue rising 11%. the social network lost 2.7 billion in monthly attributes over the next three months. alphabet's revenue fell for the first time in the company two decade history. pulling back on spending during the pandemic. up sales were down 8% over the next year, but they were picking up by the end of the quarter. google and youtube continue to be strong. amazon has crushed expectations, posting a record profit for the quarter. the online retail giant spend more than $4 billion in the three months. cleaning where houses and keeping employees at work. it seems to have paid off as customers switched to buying groceries and supplies on

stay with us, worldwide, this is bloomberg. ♪ ritika: this is "bloomberg surveillance," with the bloombergs flash. for the first time ever, investors have bet $20 billion against a stock. the value of tesla shares sold short is approaching that milestone. it has risen 230% this year. elon musk poking fun at short-sellers. the pilots union has reached an agreement on a lead program, with early retirement. senior pilots, 62 and older. earlier this week, united notified employees they could lose their jobs in october. air travel is picking up. firms, countries in the asia-pacific region account for the top 20 markets, vietnam, south korea and indonesia showing growth. china and the u.s. dominate in the number of flights operated. that is the bloomberg business flash. tom: thanks. greatly greatly appreciate that. we are hoping to have all of francine,eillance," victoria street in london, we hope to be back. extraordinary extraordinary effort by our team. what it takes to do "bloomberg surveillance," 4 a.m. london with francine starting coverage out to 10:00 a.m., just extraordinary. we are thr

"bloomberg: surveillance --this is bloomberg. ♪ francine: this is "bloomberg: surveillance." francine lacqua in london. let's get to the business flash with laura wright. is slashing ad spending on facebook according to the wall street journal. walt disney is the number one advertiser on its platform. it comes as a growing list of companies are halting spending, many criticizing the handling of hate speech and misleading content. no official response from disney. cuts,ing to announced job coming as the coronavirus continues to affect its business. saidy, the chief executive the has been the opportunity to accelerate its turnaround. a spokesperson told sky the companies is not speculate -- comment on speculation. 2020 target as demand for ventilators flooded into the market. the health tech company sees a recovery in spending on other equipment. phillips is targeting a modest gain in sales growth this year and an improvement in profit margins. that is your bloomberg business flash. francine: in the u.s., the white house is said to start talks on the next virus stimulus package

this is bloomberg bring ♪ -- this is bloomberg. ♪ >> economics, finance come politics, this is bloombergt's get you up to speed with the business flash. >> good morning. china says it will impose sanctions on americans lockheed martin. the move is in response to washington's approval of the possible deal to buy parts to refurbish defense missiles of private company, a foreign called themkesman to cut military ties. huawei. is poised to ban from its networks reversing an earlier go ahead. both companies -- copies not be allowed to add huawei components by the end of the year. all existing equipment will have to be removed by 2027. they're expected to set up plans in parliament later today. is noan union justice doubt and luxembourg are set to release two rulings. first is on the irish back tax bill and in a separate ruling, they will -- on shipping across the atlantic without applying to rules. at your bloomberg business flash. >> thank you very much. let's talk about angela merkel who is showing a united front with italy ahead of a crucial eu summit. the two leaders have warned the block

this is bloomberg. ♪ is bloomberg. ♪ yousef: you are watching "bloomberg surveillance."yousef gamal el-din in dubai. the u.s. and china -- the tit for tat continues. donald trump has ordered an end to the hong kong special status in the united states. joining us now is bloomberg's caringly, the china executive editor. bloomberg's china executive editor. treats hong kong differently on commerce and trade and the other important areas. they have revoked several important provisions, including hong kong, does not include eliminating passport holders, certain experts, da and eve neither trump nor his administration have specifically set how it will impact certain sectors here, including the financial industry, and that has a lot of people wondering what the material impact will be. karen, what was this theme for the city itself? confronting the geopolitics but also having to deal with the new tax code from china for ex-pats. that is a double whammy, isn't it? karen: yeah, the white house has not specified which chinese officials would be sanctioned, but it raises deep questi

this is bloomberg. ♪ this is bloomberg. ♪ francine: this is "bloomberg surveillance." and francine from london and new york. still with us, william the milken institute where he is chief economist. we were talking about the trade concerns between the u.s. and china and some of the things that could flareup in the asian region. when you look at the u.s. domestically, what makes you worry about how funds are distributed. william: in the u.s., the fed has done a great job of trying to calm capital and debt markets ey are tryingth to be a participant, a buyer of debt. everything toward debts, corporate managers are incentivized to invest in sustainable technology. the main concern is paying back the investor who wants his money back and doesn't care how much you make. if we have allowed the fed to support the equity market and that our kids by ensuring the equity markets, by buying baskets of equities, that equity finance will incentivize managers to invest in projects that will go for high productivity and profits. in my research work, a chart i put up shows there is a ne

this is bloomberg. ♪ francine: this is "bloomberg surveillance."were looking at the markets and we had some mixed data out of europe and we were looking at what the ecb could do next. joining us to talk about this, investment, a chief strategist. every time we have you on, we took about italian btp, german bunds, and the like. do you see any value in these bonds right now? david: yes, i do. i think the periphery has got further to rally. i quite like btp's at this point in time. i do think that it is not just about the ecb actions but it is e.u.in terms of the recovery fund. that has not yet been finalized and agreed, so that is something to watch very closely. meaninghink value is a -- i think that is a meaningful step that would reduce the risk around the project, and that is good for peripheral bonds, and italy is one of the main beneficiaries of that. francine: if you look at italy, they also have a huge financing project that should see the light of day. how can you be sure that they are spending money where it is needed and not wasted? that:

this is bloomberg. ♪ francine: this is "bloomberg surveillance." straight to the bloomberg business flash. karina: good morning. shares of intel are falling the company revealed that a new chip production process suffered another delay. that boosted rivals. at issue is a new method for cranking out smaller, more powerful chips. it is the latest sign the coronavirus is wreaking havoc in hollywood. disney has canceled the august release of the anticipated film delayed future star wars and avatar movies by when you. amc has delayed his reopening until mid-to-late august. about 400,000 airline workers around the world have been fired, furloughed, foretold they will lose their jobs because of the virus. the biggest losses have been in north america, europe, and asia. job losses in related industries such as aircraft makers, airports, and travel agencies could reach 25 million. that is the bloomberg business flash. francine: thank you. there is a settlement in the case involving goldman sachs and malaysia's troubled well fun, one mdb. numbers are being -

heard on bloomberg radio, seen on bloomberg tv, this is "bloomberg surveillance." ritika: with the first word news, i'm ritika gupta. today's monthly u.s. jobs report is likely to be a mess. the june data and weekly employment claims are expected to show further improvement in the labor market, but the actual trend may not be immediately clear because of problems dealing with the misclassification of out of work americans as employed. the numbers are out at 8:30 new york time. for the first time, u.s. daily coronavirus cases rose above 50,000. there were increases in states including texas, florida, and california. health experts say the virus is increasingly becoming a disease of the young. in florida, the median age of those infected is 37, down from 65 in march. the british economy is gearing up for what is being called a super saturday, the day the u.k. will reopen clubs, restaurants and hotels. both the government and businesses are counting on a big on the path to recovery. some bank of england policy have sounded optimistic. they say economic activity is ret

this is "bloomberg." ♪ is "bloomberg surveillance."he continue to virus, we have a partnership with leading authority from covid-19, johns hopkins has been at the forefront of the international response. every day we will bring insight from experts in public health and emergency preparedness. today we're delighted to be joined by lauren sauer, johns hopkins university assistant professor of emergency medicine. professor, thank you for joining us. when you look at the number of cases in the u.s. and the number of people in hospital, what needs to be done today for that to go down dramatically? >> i think that most important thing we can do today is publice to encourage the andwearally distance masks. a lot of the research is showing that is working. i think we all want to move toward reopening but looking at the growing case counts, looking at the cases across the united states, i think it is absolutely critical to maintain as basic public health interventions. get lauren, it is july 1, out the calendar, back-to-school shopping begins i

this is bloomberg. francine: this is "bloomberg surveillance."ovid-19 shock is underscoring the role private markers that private markets can play in portfolios. amongst the key investment that jim sees emerging is the size of the policy response so far, the changes to the economy, and sustainability. jim barry joins us now. thank you so much for joining us. we are doing an analysis with our colleagues, also following what you do very closely. have you struggled with any fundraising, for alternative things? what is the appetite for them right now? jim: i would say in general private markets in particular have accumulated capital at a phenomenal rate over the last five years, and really there are some logistical difficulties with respect to the last few months. there is nothing from our client suggesting that that allocation is going to diminish in any way. and in particular the low yield environment has been a big driver and we are looking at that sustaining into the medium and potentially long-term. no end of the accumulation of capital. pandemi

this is bloomberg. ♪ matt: this is "bloomberg daybreak: europe."iller in berlin on this friday. england prepares to reopen pubs, restaurants and hotels on the fourth of july. another stage in the reopening of the country after months of virus restrictions. the government and businesses are counting on the economy getting a big boost on the path to recovery and by mr. boris johnson will tell bertens today ons today to act responsibly. he is prepared to shut the economy again if the coronavirus cases surge. .oining us is richard vines richard, before we get to the restaurants, a have to ask you about these sort of conflicting messages. on the one hand, it is super saturday. the pubs are finally open again. everybody in britain is going to want to storm through those doors and start ordering, you know, clients of snakebite black. on the other hand, the prime minister is going to ask people to act responsibly. how do those two things square? >> good morning, matt. i don't think i can square those two things really. people are going to go for it tomorro

this is bloomberg. ♪ ritika: this is "bloomberg surveillance."'s get the bloomberg business flash. after awill leave decade at the british bank. he will stay on until next june. void is the weakest orders -- lloyd's is the biggest mortgage lender. he received full-time ownership after the bailout during the financial crisis. bloomberg has learned that the ride-hailing service uber has agreed to by postmates for $2.7 billion in an all stocks takeover. of ubers is a rival eats. billionaire warren buffett is making a bet on u.s. liquefied natural gas. toit's berkshire has agreed base $4 billion for to me energy cap natural gas line -- gas pipeline storage. that includes a 25 princeton stake and the natural gas export facility. contacts withrm india and japan. contractsrm supply with india and japan. francine: this is the data we are looking at. china is propelling the global stock rally to a mom month high -- to a one month high. if you look at europe, bank instruction, shares are pushing the stoxx 600 up. u.k. homebuilders are also rallying after a

for more onoin bloomberg radio and bloomberg tv.erg. ♪ ♪ >> the economy is not ready to be taken off the ventilator here. >> it's got to be the real economy that performs. otherwise, none of these companies will be able to make it through to 2021. >> what are the global tensions going on? right now, the biggest is the war between china and u.s. for global positioning. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: good morning, good morning. this is "bloomberg surveillance ." we are live on bloomberg tv and radio. alongside tom keene, together with lisa abramowicz, i'm jonathan ferro. in 90 minutes, jobless claims and america speaking to the pain in the labor market. later, former vice president joe biden going to pennsylvania to tell us why he is best placed to deliver the recovery t

this is bloomberg. ♪ francine: this is "bloomberg surveillance."tsche bank chief executive, christian sewing, is speaking with daniel schaefer, our bloomberg bureau chief. into --come continuing fixed income momentum continuing into june. ifsays they are assessing the wired card bank is an opportunity. i don't 100% know if he sees a payment system and sees that as something more that they want to get into. that we have seen over the last seven to eight weeks. let's get to first word news in london with leigh-ann gerrans. leigh-ann: the european economy will be hit harder than previously thought and will take longer to recover. it is the starkest warning yet from e.u. officials about the impact of the pandemic. the block's executive at forecast a contraction of 8.7% this year, a percentage point deeper than predicted just two months ago. italy plans to dramatically expand public investment. the nation's focusing on boosting growth rather than raining in debt, as the government plots its way out of the worst recession in a century. last year the leve

this is bloomberg. ♪ anna: welcome back to "bloomberg markets: european open."til the start european equity trade, futures are looking more buoyant. embarking on the most extensive restructuring in its history, with plans to cut 15,000 jobs worldwide. weeks after a 15 billion euro package to save airbus, save the french aerospace industry. clearly, that was not enough because of the travel restrictions. people are afraid to travel because of covid. 15,000 jobs, a letter percent of the workforce of these cuts will be made. this level should remain 40% below pre-covid for the next two years. unprecedenteds and worse for travel than after the 9/11 attacks. , a thread is a theme that spreads across our reporting. we talk about the travel and leisure sector, the impact on the credit ratings, and now the firings that are happening at airbus. coming up, the market open. futures are mixed. this is bloomberg. ♪ anna: a minute to go until the start of cash equities trading. let's get to your headlines. going in the wrong directions, dr. anthony fauci says the u.s. good ri

this is bloomberg. ♪ matt: welcome back to "bloomberg market: european open."o go until the start of trading. we do see futures pointing higher here in europe. the largest tech company in this -- sapis showing signs reported culinary results overnight that saw that are than expected revenue for the quarter buoyed by a resumption of cloud revenue. , given the pandemic, how has sap boosted sales year on year? >> the story they are telling is companies in asia have focused on cutting their costs, and making a more transparent supply chain. products,ves sap using them to upgrade their access to the supply chain. and their ability to adapt to changing scenarios with covid-19, some of that involves repairing disruptions in supply chains. basicallys pitch is they can help companies become more limbo and deal with unexpected situations quickly and efficiently. that has helped them boost sales in asia where economies are coming back online, and companies have to look at how they can restart production using different factories and adjusting their supply chains to the cr

this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance ."till with us is andrew sheets, managing director / chief cross asset strategist, morgan stanley . what do you do with technology stocks now? we have been more cautious on this sector, and -- the market is moving the other way, the sector is very strong. we are focused in the near-term on a specific issue, we are into an earnings season that has gone pretty well for companies that reported. the big tech names have not reported yet, they are reporting later. not only are they reporting later, they have not had their expectations be cut as much as a lot of names that have reported. i think this will be an important earnings season generally, but especially for a lot of the popular secular growth and tech names where earnings expectations have not market iswhere the expecting them to be, they are immune in some ways to what is going on. that may be the case, but it may not be how far-reaching the implications of the virus are. our concern is those estimates causes high, and that disappoint

vonnie: we are joined by our bloomberg and bnn bloomberg audiences.are the top stories we are following from around the world. more reaction to the june jobs report and weekly jobless claims with diane swonk, grant thornton's chief economist. speak with stew leonard, jr., the ceo of stew leonard's, about their stores reopening, food shortages, and lots more. we are seeing stocks extending the recent gains, some decent economic data in the form of the jobs number. that is allowing investors to continue to be enthusiastic. pretty broad in terms of what is moving higher. all but real estate in the s&p 500 is moving higher. energy leading the way, interestingly, along with materials and industrials not far behind. some into zs and about the pace of economic recovery, despite the fact that we get negative news on the covid front. disastrous numbers in florida. great concern voiced about whether the economy that have already moved to reopen will have to move backward. diane swonk is the chief economist with grant thornton. we have to take the data in two pa

bloomberg tving and listening to bloomberg radio. this is "bloomberg surveillance.a: the coronavirus is on a rampage through the u.s. sunbelt. texas, california, and florida all reported record number of deaths. houston hospitals fill up all of the icu beds. the number of new cases in the u.s. whenever 60,000 in a day for the first time. president trump's former lawyer and fixer is back in prison. refused then had test of home confinement. he is serving a three year sentence for campaign-finance violation and other crimes. he was released in may and allowed to return home for fear of catching coronavirus. a top military officer in the u.s. has broken with president trump over bases named for confederate generals. told congress they should take a hard look at those bases. threatenedrump has to veto legislation that would manage the name changes. investors will bet $20 billion against a stock. therding to research firm value of tesla shares is approaching that mark. risen, and that has -- jenniferking fun lopez and alex rodriguez are amongst a group bidding to buy the

this is bloomberg. ♪ pres.rump: the united states economy added almost 5 million jobs in the month of june, shattering all expectations. and ittacular number helps the overall situation enormously. >> on a standalone basis, this is a very strong employment report. is ae jobs coming back reasonable expectation give in what is happening on the ground with progression of the virus. >> the numbers looked impressive. they are really stimulus driven. underscores really how rapid things change in a covid tainted economy, even though we did get a really important upside surprise today. it is way too early to declare a victory. investors reacting to u.s. payrolls for june which beat consensus by 4.8 million. there was also an upward revision to the previous months number. the jobless rate fell for a second month to 11.1%. marketsained as the assess the prospects for an economic rebound even as u.s. cities tighten restrictions in hopes of preventing a second wave of the coronavirus. we are joined now by frederick carrie

this is bloomberg. ♪ francine: this is bloomberg's -- ritika: this is "bloomberg surveillance." & beyond plans to close 20% of its stores over the next two years. they operate more than 950 locations in the u.s. and canada. like many retailers, they try to scale down e-commerce business and negotiate with landlords. the pandemic locked down sent sales plummeting 49% in the latest quarter. the sales drop has gotten worse as airbus failed to get any orders last week. jobsannounced a cut 50,000 at his jetline unit. warren buffett is dropping it down the ranks. fortune putsichest him in eighth place on the billionaires list, the lowest he has been since the index started in 2012. you can blame his generosity in part. he gave almost $3 billion in archer hathaway stock this week. that is your bloomberg business flash. tom and francine? francine: yesterday, we had a conversation with the italian finance minister. tore's a lot of pressure politicians for italy to accept the esm credit lines. people say there could be some stigma attached. i asked that question and they say no, they are

this is bloomberg. ♪ matt: welcome back to "bloomberg markets: european open."nto the session looking at 1% gains. the ftse up a little less, the dax up a little more. let's get the bloomberg business flash, top corporate stories. tesla has overtaken toy yoda as as theld -- toyota world's most valuable automaker. shares out of california have doubled since the start of the year, giving it a market cap of more than $207 billion. there is obviously a huge difference in the amount of cars they make. of thenly produced 4% number of cars made by toyota, which makes more cars than anybody else in the world. daimler says the car industry faces painful cutbacks to overcome the economic fallout of the coronavirus. they are warning a drastic salary cuts, saying they are necessary to protect their finances and safeguard investments. he says executives will face bigger reductions than rank-and-file workers. britain's financial regulator says firms should prepare for a no deal brexit. he says a breakdown in talks could disrupt equity and derivatives operations, and is warnin

this is bloomberg. ♪ matt: welcome back to "bloomberg markets: european open."nto the trading session. we are not saying a lot of moment. -- a lot of movement. a downside to the ftse and cac off 0.2%. of dax in frankfurt is unchanged. let's get the bloomberg business flash. laura: more than 200,000 brazilians are asking for the right to sue the biggest mining company over the collapse of a dam five years ago that killed 90 and cause lasting environmental damage. if the case goes ahead, it will be the biggest class-action in history. elon musk has unlocked the second chunk of his pay award. his company hit another target so he can access options worth $2.1 billion. musk unlocked the first in may. teslas value has doubled since then. ending three centuries under the old name, they will remain in use for the consumer business. the chief executive says the move is to align the bank's name with the brand under which most of the business is done. much.thank you very let's talk about the credit default by european companies fell to the lowest in five months after eu le

this is bloomberg. the fed extended seven of its nine emergency lending programs by three months to december 31 in its latest effort to boost the economy. the move comes ahead of the decision today that is widely expected to result in no significant policy changes. stimulus talks between president trump's team and democrats have stalled while senate majority leader mitch mcconnell insisted his plan for shielding organizations against lawsuits stemming from coronavirus cases should be included. his stancei said suggests he is not serious about reaching a deal. joining us is multi-asset strategist at societe generale. thank you for joining us. when you look at the markets today, they seem to be moving sideways but over the last month, they focus a bit on the stimulus, central banks. what is driving assets and equities right now? since mid-june, the cyclical rotation that has been stopped short because of the worry on the second wave. i think what is driving markets recently is worries on whether the secon

this is bloomberg. ♪ tom: good morning, everyone. bloomberg surveillance.'m tom keene in new york. interesting stuff going on here, with an ecb meeting, and of course all the other market activity as well. -- dow -30, dell futures futures -- we are speaking with ohl,icult -- david k who is more than qualified to continue the discussion on negative rates. i want you to talk, david, about negative rates to the public money market funds and short-term paper. bankst understand how the withove forward day today these interest rates. david: we have seen because there is an in norma's amount of revenue with the money market funds, they are quite low. so in terms of interest rates basically making these kinds of asset classes less attractive, and from the ecb part, perspective, this is exactly what you want to achieve, you lessto make risk attractive. it is a measure, and experiment, to push money more into risk advances out of the money market fund. of: this goes to the heart julius baer. , just very simply, if there are challenges in asset management, how will ju

"bloomberg surveillance."'m francine lacqua in london. we have breaking news the last 20 minutes. china says that the u.s. has abruptly closed its consulate in houston. that is having an impact on the market. let's get the markets. risk sentiment looks a lot shakier after china says the u.s. abruptly ordered the closure of its consulate. most european indices have extended declines to session lows. s&p futures accelerating their dissent. i did want to show you gold and silver. let's get straight to the bloomberg first word news. ispresident donald trump restarting virus briefings. there was a shift in tone with the president urging americans to wear masks and avoid risky behavior. the death toll for the virus in the u.s. has topped 140,000. cases are still growing, especially in southern and western states. president trump: it will probably, unfortunately, get worse before it gets better, something i don't like saying about things but that's the way it is. we are imploring young americans to avoid packed bars

from new york city on bloomberg radio and bloomberg tv, this is "bloomberg surveillance."avirus is skyrocketing and republican leaning sun belt and interior states. that could mean trouble for president trump's you wretched -- for president trump's reelection campaign. new cases have exploded in arizona and florida, both battlegrounds. polls show the president support is slipping in places with high rates of infection. jp morgan says wall street is too negative about what it would mean if joe biden were elected. the strategist said numerous factors can make biden more market friendly than investors think. the finance industry is ramping up the pressure on the european union over brexit. the association for financial markets in europe warns there could be disruptions by the end of september unless there is progress on a trade deal by then. recent talks between the u.k. and e.u. and it was little movement. argentina has come up with an improved offer to restructure $65 billion of bonds. the proposal seeks to reduce credit losses. in may argentina defaulted for the nighttime

this is bloomberg. ♪ oomberg. ♪ "bloomberg surveillance.," nejra: this is"bloomberg surveillance.," idon. i was talking with christian schulz, citigroup economic director. before the break, we brought you breaking news regarding france appointing in youth prime minister. appointing a new prime minister to succeed Édouard philippe. just a moment ago, we were talking about how you got quite a lot of faith in germany's response to the crisis, the recovery, and also the fiscal response generally. what is your outlook for france in terms of the recovery trajectory? christian: on friends, we are less optimistic. the approval ratings that macron has in the approval rating of him dealing with the crisis are much weaker, and it reflects back on to the consumer confidence. but if you look at it, not everything went bad in france. they've got the virus under control now, it seems. so far, so good. the banking system in france has been very forthcoming with credit. it has provided liquidity and that has really helped french companies. the pmi this they are responding more strongly in france than

this is bloomberg. ♪ francine: this is bloomberg surveillance.ht to the bloomberg business with leigh-ann gerrans. leigh-ann: the virus is eroding demand for luxury products in lvmh customers are curbing purchases of goods faster than the company can cut costs. profits came in worse than expected in the first have for the three months through june. revenue fell 38%. analysts expect it to be the luxury industry's worst ever quarter. pfizer and biontech say they the late stage trials of coronavirus vaccine candidate. their goal is to submit it for review as soon october, putting it on track for one of the most ambitious timelines to date. unlike moderna, pfizer has not received funding from the u.s. for research. intel has ousted its chief engineer less than a week after falling further behind in production technology. the company's chip designer manufacturing opposition -- manufacturing operation, leaders say changes are to accelerate reduction and leadership. that is your bloomberg business flash. francine: have gold prices risen too far, too fas

this is bloomberg. ♪ reports today. this is bloomberg. ♪ tom: "bloomberg surveillance.", everyone. "bloomberg surveillance." johnson in london, i am tom keene in new york. into some central-bank action through the rest of the week. no question about it, the lift coming on worldwide, the pandemic and the idea with that we may get a vaccine sooner, better and at some point. the backdrop is in the united states. clearly, the president, who some would say is at war with science . peter baylor going after the president for a second day. i should say the president's advisors as well, as they criticize dr. fauci. but growth back to the science. one of our experts from science works out of victoria senior health care analyst. what is different about this virus? this vaccine optimism versus the optimism of three weeks ago or three months ago? , the difference is that we have yet another vaccine, now number three. one from pfizer, now my dinner. moderna.om mothe data seems to indicate you are able to induce an immune afterse in humans injection. there is lot still to understand an

this is bloomberg. ♪ ic. this is bloomberg. ♪ vonnie: this is bloomberg markets.e quinn in new york. alongside greg pennell in toronto. with the pandemic sending waves through the economy, the oecd is. or different scenarios. joining us now with the details is the oecd chief economist and director laurence boone. the latest survey of the u.s. says that while a lot has been done, and it is great that we could have a gradual recovery, why isn't it possible that we could rebound quickly here? laurence: two factors make it difficult. the first money is we don't really know a lot about the virus, we don't have a treatment, vaccine. that is the only way that you can protect people, by using physical distancing. this will impair a number of sectors like travel, hospitality, entertainment, leisure activities. we will not get back to a 100% economy but just 90, 95. some states are having trouble containing the virus, so in you need to take more stringent measures of confinement to let the infection rate declined, which means shutting down the economy a little more. it will

this is bloomberg. ♪ tom: bloomberg surveillance. good morning.ejra cehic in london for francine lacqua. i am tom keene in new york. it feels like a friday in new york with the jobs report. frankly a lot of other data as well, coming out today. we will have a much better look at the american economy by 12:00 noon today. willem buiter joining us with his work with citigroup. then we turn to a different style of macroeconomics. has been a careful student of the domestic economy with some controversies i might say, writing for the new york times as well as academic services over the last number of years. here on the present state of america is paul krugman. paul: we are in big trouble. back about a month and a half ago, i was laying out the bad scenario. it was clear we were going to have a couple good months of recovery. there was a lot of pent-up demand for people weren't allowed to do. the bad scenario was that we would have a spike in covid-19 cases that would lead us to have toinstall -- lead us to have stall and backtrack. we are going to get a

this is bloomberg. ♪ ♪ leigh-ann: this is "bloomberg markets."pulling the plug on jet, endingo production after a half a century run for the twin aisle plane. the decision hasn't been reported, but sources have it worked out from subtle word changes in the company's financial changes. despite the popularity with travelers, the final version of the 747 never caught on commercially. citigroup is unlikely to bring more than 40% of workers back to the office until a coronavirus vaccine is available. the bank has started to bring a small percentage of staff back, but it has run into a consistent problem. employees are hesitant to use subways or buses to get to work. the firm has around 200,000 employees globally. elon musk is again taunting the securities and exchange commission. while commenting on twitter about tesla's surging share price, he started joking about short-sellers. he then referred to the regulator as "the short seller enrichment commission," a phrase he first used in 2018 after the sec sued him for securities fraud. that ended in a set

this is bloomberg. ♪ matt: welcome back to bloomberg markets.uropean open, just 12 minutes into the session right now, and we're looking at gains that are about 2% across european equity indexes, almost 2%, so definitely a risk on feeling on this monday after we had a down session on friday. it looks like investors are very hopeful for continued growth and government support. 5.6%, got the csi 300 up 5.7% after a little bit of help from the states overnight. itket volatility is making difficult for investors to work out where to put their money, to some extent. freddie lait is still with us. freddie, we were talking about the stocks that you like. texas instruments is one you'd have been in vet -- we know you have been invested in for some time. what are your other stable investments that haven't changed throughout the crisis that you continue to hold onto? -- why do you think you not feel the need to change out throughout the coronavirus crisis? to your comments about what has been working is this technology, in particular, subset of the market

this is bloomberg. ♪ ritika: this is "bloomberg surveillance."'s get the bloomberg business flash. an all-time high, passing the previous record of 1921 dollars set in 2011 for gold. has passed theld record in 2009. a u.s. ipo of the software unit -- it requires a u.s. company less than two years ago, the company -- a people keep a majority interest in politics. --in four bloomberg learned there investors almost $100 million in its parent of china ant financial during its last round. lamp -- funding one estimate says it could be valued at more than $200 billion. that is the bloomberg flesh. francine: thank you so much. this is what i'm looking at in the markets. time and i spend a good amount of time talking about gold. gold is significant because we can see -- if you look at stocks, it is pretty much missed, but now it is flatlining and the dollar is sinking. don: let me run through it now. futures up 14 -- tom: let me run through it. futures up 14. the two-your stunning under -- .392.nt you have seen that in the inflation-adjusted 10 year tips

this is bloomberg. ♪ ritika: this is bloomberg surveillance. i am ritika gupta.la is possibly paving the way for its soaring stock to join the s&p 500 index. the carmaker reported positive earnings for the first quarter -- for the fourth quarter in a row. that is not good enough for ceo elon musk who says tesla is not going fast enough. unilever reported better-than-expected revenue in the second quarter that was fueled by consumers buying hand sanitizer and ice cream. unilever also signal the pandemic hasn't hurt its appetite for acquisitions. ceo alan hope tells bloomberg tv the company has been looking for purchases the last six months. mercedes-benz expect to make an operating profit this year. the company is counting on the economy improving. that is your bloomberg business flash. tom: ritika, thank you so much. we had been speaking with marvin loh of state street global about the clear and present dangers, clear and present opportunities, but what is out there? but 2024,an 2021, 2026, with all of this debt building up? marvin, there has to be a price to all

this is bloomberg. ♪ nejra: this is "bloomberg surveillance."'m nejra cherish in london. centralo says recent bank actions -- i am nejra cehic in london. ray dalio says recent central bank actions, he spoke with us. take a listen. ray: today the economy and the markets are driven by the theral banks, and coordination with the central government. what i mean by that is the purchases right now of financial assets by the federal reserve or the purchases by the purchases by the federal reserve of government securities are the drivers of that market. so of the production of the money, if you look at money, and you look at who is in the market -- so the federal reserve, for example, set an interest rate that, for different types of creditors, based on its economic objective, in the old days, let's say when we had the 2008 financial crisis, we needed to protect banks because they were systemically important. and then money market funds and commercial paper and the like. now it is much broader than that. the world economy is systemically important. if t

this is bloomberg. ♪ is bloomberg. ♪ vonnie: it is 1:00 p.m. in new york, 6:00 p.m.00 a.m. in hong kong. i'm vonnie quinn. welcome to bloomberg markets. here are the top stories we are following from around the world. phase one and done. that is what president trump says. phaset while ago, saying two is not under consideration, and the relationship between washington and beijing is severely damaged. in a few moments, i'll be speaking with the john boyd, founder and president of the national black farmers association. we will be asking how the china deal is scoring with farmers. and whether more aid is needed. and it is jobs day in canada. david rosenberg on the report that said canada retrieved nearly a million jobs last month, still ringing the recovery to only about 40% of the 3 million lost. let's take a look at the

bloomberg, the founder of bloomberg lp and bloomberg philanthropies.come on "bloomberg daybreak: asia." this is bloomberg. ♪ the influx of investment in india's tech sector is encouraging its own mega startups to go public. the first one might be the online insurance platform, policy bazaar, backed by softbank. elstrom,r from peter bloomberg's editor in tokyo. india has a tightly regular to financial services sector, so how is this come to be? >> as you say the financial services sector has been tightly regulated. from -- but what you have seen is regulations have loosened up, and there is an intriguing crop of startups trying to peel off segments of the industry and trying to bring innovative services and lower cost to them. is one of them, and online platform for buying insurance, from health insurance to property insurance. it matches buyers and sellers, and the platform will follow-up on claims. a reporter interviewed one of the cofounders of the company who said they're looking to 250m now as they prepare for an ipo next year, and they are targeti

this is bloomberg. ♪ tom: "bloomberg surveillance" guy johnson in london.rancine lacqua reporting on credit suisse in zurich. tom: tom keene in new york and howard ward, each of these companies is different. what is the distinction you see in apple computer in 2021? tom, this has been a phenomenal stock. i never would have expected it to do as well as it has done this year. cap,trillion market reporting tonight, revenues, $55 so,ion, earnings $2.10 or earnings this fiscal year up, maybe 5%, 6%, revenues around 2% . growing your business during a pandemic is a good thing which results in stocks being be rated higher than those companies suffering during the pandemic. owns the smartphone market. they own it. u.s.martphone share in with their ecosystem, they have developed incredible brand loyalty with 90% rate of people continuing to own apple iphones when they're are ready to get anyone. massive upgrade when the 5g phone comes out in september/october, as many as one third of all current iphone owners are planning to upgrade, according to surveys we have see

this is bloomberg. ♪ nejra: this is "bloomberg surveillance."m nejra cehic. .arnings onslaught coming up coming up, our conversation with the deputy ceo of renault. we will talk carmakers next. this is bloomberg. ♪ save hundreds on your wireless bill without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you only have to pay for the data you need, starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. 5g is now included with all new data options. switch and save hundreds. xfinity mobile. welcome to camp tonsafun on xfinity! it's summer camp, but in your living room. learn how to draw with a minions expert... how to build an indoor obstacle course! plus... whatever she's doing. and me, jade catta-preta. the host of e's the soup! camp tonsafun. it's like summer camp, but minus the poison ivy. unless you own poison ivy. in which case, why? just

this is bloomberg. ♪ ♪ francine: this is "bloomberg ."ce let's get back to the markets now and focus on gold's bumper year. ant prices is nearing $1800 ounce. joining us now with the details is dani burger. dani: yes, today is certainly seeing golden nearing $1800 an ounce. 2020 has been the year of the precious metal and havens in general, as coronavirus takes its impact on the global economy. for every single month of this year, the commuter live inflows inflows tocumulative gold backed itf's has -- the prior record for inflows into gold etf's happened in 2009. that is this a blue bar over here. we just surpassed that at 655 and we just passed the halfway mark of the year. certainly a chance that these could turn into outflows in the second half, meaning that we would not be at that record anymore. traders think otherwise. they are continuing to bid up gold. according to hsbc, a metal strategist at their says the continued support from central banks, low interest rates, expanding balance sheets and fiscal support not only means old's ga

we are joined by our bloomberg and bnn bloomberg audiences.e the top stories we are following from around the world. canada as almost a million jobs in june, the unemployment rate dropped to 12.3% as job gains surpass estimates. wall street facing trouble in its campaign to hire black talent. we will discuss the industry's move to address the lack of black executives. and we take a look at the state of reopening the fitness industry with the ceo of orangetheory, dave long. amanda, what is going on in the markets? amber: let's check in on the action. breatherq taking a after reaching yet another all-time high yesterday, leading the way in the united states is financial stocks. lines, this after carnival cruise says they are booking next year and it is in line with historical norms, and they have not had to discount prices that much. so a host of cruise liners are trading up. there's a look at the u.s. dollar versus the canadian dollar. you mentioned earlier the canadian economy turning out nearly one million jobs for the month of march -- june.

this is bloomberg. ♪ just francine: this is "bloomberg: surveillance." francine lacqua in london. virusvery from the pandemic may not come until 2022. take a listen. have been leaders proactively coming with a stimulus package that is to support the economy but i would like to highlight important elements. we should not lose the global challenges in the economy. -- astock experience slowdown in 2019 and the pandemic has accelerated the slowdown in the global economy and created a shock to the astem, but we have seen positive response from the regulators and the g20 leaders, specifically the finance ministers and central banks, where they have learned from the previous crisis where they took their time to come up with a stimulus package but this time, the issue we need to look at certain elements of the global economy that enable us to look related toal changes digitization, related to our ability to have free trade and more importantly, should not lose sight of a key principle. sustainability and also development, human capital developments. it is import

this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe."ejra j pitch --i'm nejra cehic in london. japan is weaker in asia but the msci index green overall. the 10 year yield a steady. the dollar is getting hit by u.s.-china tensions at a 16 month low. g10 currencies strengthening against it. gold at a record, oil pulling back. airlines aretish hitting back at the decision to quarantine visitors from its top tourist destinations. the spanish say it is a safe country and working hard to contain outbreaks's. spain's health ministry report 930 new cases thursday and friday. emmanuel cau from barclays is with us. 30 days with what we are hearing from spain, but is this enough to shake your thesis that we are going to see a strong rebound in europe and in many ways, europe has weathered covid better than u.s.? emmanuel: i don't think so. i think the situation on the covid front is across regions so infection remains high. in india, in japan, spain. i guess markets and economies will have to deal with this uncertainty for much longer, at least unt

this is bloomberg. ♪ matt: this is "bloomberg daybreak: europe."miller with annmarie hordern. the relationship between u.k. and china is about to be tested. the british foreign secretary dropped a heavy hint the u.k. will suspend its extradition treaty with hong kong. the move would mark a further diplomatic escalation intentions from britain banned huawei its five g networks and possible sanctions over human rights abuses. for more, jodi schneider joins us from hong kong. know about this actually happening and what would it mean for the u.k.-china relationship? like it is very likely to happen and to happen today because the minister will address parliament and he has given a big hint, big signals that the u.k. will suspend its extradition treaty with hong kong, which is a former colony that it handed back to china in 1997. this would definitely escalate tensions. bowingalready the u.k. -- what china says is bowing to u.s. pressure by banning huawei from 5g networks. there is the human rights abuses that they might sanction for and the invitation