that was the deutsche bank global head of fx research.et straight to the bloomberg first word news. republicans are drafting their own proposal for practices.olice it includes racial bias training, increased use of body cameras, and enacting the first federal anti-lynching law. house democrats have already come out with their proposal. they want to make it easier to sue and prosecute police accused of wrongdoing. all of this comes in response to the killing of george floyd in minneapolis. u.s. authorities are investigating a vast hacker for hire scheme traced to india. it involves attempts to steal confidential information from investigative journalists and advocacy groups fighting climate change. it is unclear who funded the hacking operation. one of the beneficiaries apparently was the embattled german tech firm wirecard. the company says it has not been in touch with any hacker groups. the u.k. has not seen a time like this since the industrial revolution. britain has gone a record two months without burning coal. from 40% just seven y

torsten slok of deutsche bank. just a remarkable conversation.re the kinds of things you need to see happen. the issue with this is that this was a pandemic. i think the way the federal reserve has approached it is the belief that no one deserved to go under because no one could have seen this coming. not my personal view whether that is the wrong or right approach come about that seemingly is the approach from policymakers worldwide. tom: that a claimed deutsche bank chart that everybody put out, i know zero edge featured it a few days ago, of the zombification of this economy, is extraordinary. all this comes down to is a new kind of capitalism. i love your short question there. what is this? we don't know yet what this modern form of capitalism is. jonathan: i am not even sure whether we can call this modern capitalism. i have no idea what we should be calling this for the years to come. lisa: my question is, honestly, we have a situation where people who own assets are seeing price gains. people who work at these companies being i with more d

what are we hearing from deutsche bank?is not officially commenting but a source close to the matter tells bloomberg it swiftly ended the informal talks in 2019. now, before wirecard's meltdown and the still unfolding accounting scandal, the stock plunged to new lows in the latest session. it apparently toyed with the deal that would have catapulted into the global financial elite. sources, the payment processing tech firm approached deutsche bank with an idea for some kind of combination or tie up late last year. the project was codenamed panther according to those close to the matter, and the prospect of the processor taking over germany's biggest lender actually highlights the sudden reversal of fortune that we are seeing for it. it had been the best performer in the dax 30 stock index in 2018. its value now is only a fraction of that of deutsche bank, yet it looks like there was some kind of idea that we might actually be able to do a major deal with deutsche bank. deutsche bank not officially commenting but said to hav

because of the construction, it reacted so swiftly and replaced lufthansa by june 22 deutsche wohnen is 22 years old but since its creation has grown into one of the biggest real estate companies, residential companies in germany last year in discussion about the rental capital was a discussion for some time because of the rental increases especially in berlin has taken a toll on the company last year. they were one of the candidates to move into the dax now second time lucky they made it into the dax with a market value of roughly 14 billion euro in berlin, you have that cap now in place since february, which means they can't increase their rents for another five years the scrutiny now is on deutsche wohnen more. that's what housing associations are now saying most likely international investors want to have higher dividends to push harder for rent increases. if you are a dax member, you are more investable for loads of investors. at the same time, talking about lufthansa. that's not possible if you look at the fallen angels it is not too bad. rallying by others as well lufthansa ha

joining us is christian nolting from deutsche bank.the monetary side and the fiscal started to come through, do you think europe is say from a very bad procession, or is this still a risk if something goes wrong or if the money doesn't get deployed fast enough? kristin: -- deploying onthink the monetary side and the fiscal side, i think a method of change now is on the fiscal side we see a second layer. the first one was more on the supply side to support companies to survive the shutdown. now what you see is support of the demand side so the consumer spending starts after the lockdown with companies opening up. the tax in germany for the next six months from july to the end of this year, just one of the largest spending bills in europe . i think that is a positive sign. there is see if perhaps -- i think b.a.t. has everyone because that is the product you could imagine. i think that is good news from that perspective, and it has worked in other countries as well. from the tools, it is the right direction that we see. eventually it all

peter hooper, deutsche bank level head of economics research. that is the consensus.have reopened and you get the mechanical bounce, and then the long slog starts. it will take a long time to fully recover. tom: that is the consensus, but to lisa's question, the basic idea that the good news is we get back to 10% unemployment, that was the worst unemployment of 2008-2009, and we all know how we felt then. the behavioral recovery in new york city with 18% unemployment until you get well under 10% employment. no one knows when that will be. jonathan: i cannot agree more. 10% is terrible. i do not think anyone thinks that is a good number. what we all want to see is something much better. what i worry about is as we reopen in new york, massachusetts, the northeast, you will see the numbers continue to push higher. what that could do is mask fragility beneath. there are other states further along in the reopening process, and to michelle meyer's point at bank of america, what is critical is to understand whether the increase of infections as we start to breach hospital ca

sewing is doing at deutsche bank?avide: i think he is doing the best he can given the hand he is given. has withheld the first shock. for arkets have allowed good pml. i think there is further structured like most other banks. but deutsche bank will be a survivor of this crisis. this is something that was not five ory, in my view, six years ago. you soe: great, thank much, davide serra. we will get back to davide throughout the day to figure out what comes out of the s -- out of the ecb. coming up, we speak with sheila patel. the markets, we will look at what happens in the next couple of weeks. paws, are rallying their tom. actually, they paused their reality, is what i meant to say. this rally was powered by bets on the speedy recovery by the pandemic. now the focus is on a lot of the job losses. treasuries are actually steady. the australian 10-year yield is thriving back. on the stimulus front, heard from angela merkel, a sweeping 130 billion euro package for consumer spending. and to get businesses back again. el

deutsche bank warns provisions bankrise -- the german provisions aren a threat to a deutsche bank's restructuringn. but to restore profits after five years of losses. that is your bloomberg business flash. alix: thanks so much. we want to stay with the banking story. what caught my eye is u.s. secretary of state mike pompeo is blasting hsbc on china's move to impose national security legislation and hong kong. -- a browbeating of hsbc should serve as a cautionary tale that fealty seems to have earned hsbc little respect in beijing and continues to use the bank for political leverage against london. i was surprised at this from pompeo. guy: pompeo is also putting greater pressure on the u.k. on a number of different angles, including the relationship with huawei. the u.s. and the secretary of state are asking the u.k. to take sides in the china-u.s. conflict, and this will be something that will be problematic for a bunch of companies. if you are nike, how do you deal with relationship? you have a big business in the u.s. and china. how you make that work? the european close is coming up. this is

we are joined by the cohead of capital markets at deutsche bank.rik, thisting, is a strong message by jerome powell. as a central banker, committing yourself out another 18 months, this is a big step. you are removing optionality. in a sense you are tying your hands behind your back. otherwise you risk a situation down the road. >> exactly. it is mirroring with the ecb said last week, which is that the central banks are going to do whatever is necessary to stabilize markets. if you look at the message, there is both a bad and a good thing there for the markets. the bad thing is clearly the central bank is going to face much longer than six months. the good news is they are committing to stimulus, which is part of what the technical is in markets. it, tonteresting, isn't see the market react to both of those thoughts, to have to go through that process. i wonder what you think of the tools the fed has available to it. is yield curve control something those that you talk to think is realistic? is it happening already or is it inevitable here? >> it i

>> two big banks, deutsche bank and barclays.nically when you talk to people and what both are arguing toe regulators, what is iting they're saying our relationship with mr. epstein has something to do with his relationship with jpmorgan and, i will get into all that in a second. like i said, two big banks are under scrutiny because of their relationships with, with mr. epstein, convicted sex offender, who hung himself in his jail cell while he was awaiting charges. mr. epstein had a long history on wall street. he did business with bear stearns in the day. then jpmorgan. most recently deutsche bank and had a continued relationship with the ceo of barclays, jeff staley. but here is what we know, deutsche bank is primarily the one under the gun right now. new york state regulators are looking at their relationship with mr. epstein. what deutsche bank is arguing is pretty simply. he came to us in 2012. he came to us from jpmorgan what they're describing as a clean bill of health, despite the fact in 2008 he was convicted of having

deutsch 380, ubs 400, bernstein 370.are back in a minute. - [narrator] the shark vacmop combines powerful suction with spray mopping to lock away debris and absorb wet messes, all in one disposable pad. just vacuum, spray mop, and toss. the shark vacmop, a complete clean all in one pad. can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. >>> big whipsaw overnight as navarro said the trade deal was over but then clarified his comments looking for a gain here as the nasdaq is coming off seven straight wins, s&p up 5 of 7, "squawk on the street" continues in a moment. i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior dec

idea, but deutsche bank quickly into the per luminary talks.ore than $1 trillion in assets, it market value was less than wire card as recently as april. abril -- apple plans to sell mac computers with in-house processors, signaling an end to its 15-euro alliance with intel. the change was announced at the virtual conference for software makers. it also saw the most drastic change to the iphone home screen since the product possible lease. it will now allow users to place widgets that sit between the usual grid of apps. that is your bloomberg business flash. matt? right, pershing square's bill ackman says the recovery in the u.s. economy could begin by year-end, but the reopening process will be sloppy. he also says the outcome of the coming u.s. elections won't impact his investing strategy. he spoke with david rubenstein at the bloomberg invest global summit. going tohink we are begin a recovery certainly by year-end. i don't think we will be back to anything close to a normal economy until probably the second half of 2021. i think if we have

had a corrupt motive that the purpose was to obstruct or to shut down an investigation perhaps of deutsche of bank how bank as you're mentioning who is a favorite of present heir to want of turkey there's reports that deutsche bank is under investigation that even jerry cushion or and money laundering if there is a corrupt motive then that could be evidence of an impeachable offense you may recall when archibald cox was fired by richard nixon in the watergate case he was then acting as special prosecutor that firing was used by the house judiciary committee as evidence of obstructing justice and failing to faithfully execute the laws in voting impeachment articles but there's not a way in my judgment that mr berman can reclaim his job the sanction that's available under the constitution if there was a crowd motive is impeachment. how important is the berman to the investigations that are going on i'm guessing that they are not based around one individual that there are dozens possibly even hundreds of lawyers and legal experts working on the on these variety of different cases that are goi

coming up, matthew liz eddy of deutsche bank.een lights out about the flow of economic growth. interesting work from deutsche bank. for an get you prepared interesting labor economy week. in there with us markets. here is what you need to know, yields grind ever lower. stay with us. this is bloomberg. ♪ ♪ do the math and the math is simple. logicallyre very naive. too many have mayors who are openically neutered and the economy. this morning, the pandemic across america rages. do not ask about the trajectories of mexico. the yield breaks lower. the two year yield nearing a 0.15 handle. hope for a v-shaped recovery evaporates. the second half of 2020 is upon us. we consider the many risks and uncertainties of getting to new year's day 2021. good morning. this is bloomberg surveillance. i am tom keene in new york. we begin early, we like to do that on surveillance. good conversation, framing out the second half of the year. what i

the payments company considered a tie up with deutsche bank and approached the lender with the idea.eutsche bank quickly and the preliminary talks while the bank had more than $1 trillion in assets, its market value was less than wirecard in april. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. at what isa look happening today. 9:00 a.m. london time, the eurozone's culinary pmi readings for june. boris johnson will announce relaxingeasing plans, of social distancing rules is expected to be the main point of discussions. manus: indeed. reading of u.s. pmi for june will hit the tape at 2:45 u.k. time. 15 minutes later, the latest new-home sales figures. will there be a rush across the doors? and the bloomberg invest global summit continues throughout the day. implications of stimulus deployed during the pandemic. let's look ahead to some of the big interviews that will be crossing the terminal throughout the day. pimco'sime, we will see ceo followed by the carlyle group's co-ceo, and finally,

simple design and it's easy to use the app was developed by german software giant s a p together with deutsche telekom the firms were only commissioned to create it in early may until then the german government had planned to use technology that would have put user data on to central servers critics warn that the system was not secure and too vulnerable to hackers so berlind switched to a decentralized solution now users remain anonymous and the encrypted data is wiped from their smartphones after 2 weeks. the covert app uses bluetooth to determine which other smart phones are in the vicinity and for how long if an app user tests positive for the corona virus other users who were in longer contact with that person get a warning message some experts say that around 50000000 people in germany would have to use the app for it to be really useful in the fight against the virus it was all come back and thus we also have to make it clear to people that we're not going to suddenly get rid of the virus through this app it's just one approach of many that can at least help thin out the chain of infecti

gether with deutsche telekom the firms were only commission to create it in early may until then the german government had planned to use technology that would have put user data on to central servers critics warn that the system was not secure and too vulnerable to hackers so berlind switched to a decentralized solution now users remain anonymous and the encrypted data is wiped from their smartphones after 2 weeks. the coded app uses bluetooth to determine which other smart phones are in the vicinity and for how long if an app user tests positive for the coronavirus other users who were in longer contact with that person get a warning message. some experts say that around $50000000.00 people in germany would have to use the app for it to be really useful in the fight against the virus and thus we also have to make it clear to people that we're not going to suddenly get rid of the virus through this app it's just one approach of many that can at least help fin out the chain of infection if not actually interrupt it and the question could this is the logo of the official german coded

and donny deutsch is with us as well on this friday morning. we have another slate of new polls to show you this morning on the heels of the ones we s w showed you yesterday showing joe biden with sizable leads in six battleground states that trump won in 2016. this morning we have numbers from four more key states, including battleground florida where biden is up nine and deep red georgia and texas, which look quite purple right now. >> you see the opening statement, and donny deutsch, joe biden showing empathy. which, of course, joe biden is better than just about anybody in the political state showing empathy for good reason, he's -- the stratetragedy that he's endn his life. and then you have donald trump who is asked what should he say to people that are scared and he attacks the reporter and says you're a bad reporter. he can't do it. but donny, i'm going to start this morning, this friday morning, and hope everybody has had a good week. going to start this friday morning with just asking the question again, does this guy want to be elect

in deutsche bank, they missed the retail v-shaped bounce we got as well.ou get the feeling that economists are pretty much flying blind right now on each and every data point. jonathan: i would agree with that, but he talked about consumers and businesses self-regulating. even if the governors, the local officials, state-level officials don't hold that themselves, companies and consumers will, and we are already seeing signs of that in various states across america. appraise fore a four-day workweek, it is all about the two-year yield coming in. 0.1602%.wn to there is a ground in the short-term space, isn't there? lisa: certainly, borrowing costs are on the low side. i am struck by how low the borrowing costs are for the top-rated companies, especially at the federal reserve released some of the details of their bond buying and showed that the likes of apple and verizon benefited significantly from the purchases. liquidity does not equal solvency. i put do the fed's measures run out and a cascade of bankruptcies starts to change over and take the tone for

one client deutsche bank, under investigation by that division. we don't know much about that. how strange? playing golf with the president within five or six days of this evolving and just sent a memo out to his whole staff at the s.e.c. he was looking forward to them all coming back and not working from home. the day before this happened. >> right. the lack of qualifications and who clayton is and his previous affiliations and current affiliations contribute to this perception that this is more than just a change of personnel. the best case scenario is that we simply have an imperial presidency philosophy. the president can do whatever he wants, if he like as gs a guy, n put him in a spot he wants him. the worst-case scenario, we have an attorney general willing to enter into all of this conflict, bring a barrage of criticism. enter into what looks lying appearance of conflict all in service of a president. the thing most disturbing that needs to come out. you mentioned ierdogan and the turkish bank case. trump said i'll help you out, but the important part, those prosecutors

maybe it's deutsche bank. whatever it is or that donald trump said he wasn't aware of it. did that strike you as weird? >> donald trump is a person who thinks he's above the law, who was angry at jeff sessions for recusing himself when it came to the russia interference investigation and then faced ten different instances of claims he had obstructed justice including asking his white house counsel to lie for him. and in that, we also saw him say on air force one when asked about $130,000 payments to stormy daniels, he said ask michael cohen, i know nothing about it. we find out he was writing checks to pay michael cohen back for paying stormy daniels. we should not believe what donald trump says when he's feeling heat because something has just happened that may, may be about obstructing justice in a way that helps donald trump. at least it appears that way. now, the reality of -- nick mentioned what we heard in john bolton's book is what we've seen in his behavior. this is a president who wants to help people who he feels can help him hold office and win election. so for

pmiill get inside that released from deutsche bank.g. ♪ shery: new industrial data from china is due later and analysts expect a strengthening expansion in manufacturing needed by the gradual reopening of the economy overseas. let's bring in deutsche bank greater china macro security just. inside manufacturing is doing well. sector seen the surface being impacted with the upper again beijing. china reporting 19 new coronavirus cases on monday. seven in beijing. me.hank you for having june pmi to indicate recovery of china's domestic economy. data shows generation growth in june accelerating engine one -- 1.1% year-over-year. fiscal spending picked up since may which should help stabilize investment consumption. shows recovery to 50% of last year's level plus the rebound of global pmi recently suggests recovery with exports. in beijing,cases containment measures have been effective in terms of checking patients. impact hase growth been limited to the beijing growthso we expect broad recovery to continue. perhaps that is why fitch also r

>> not with me personally, but they have then in contact with george avella, and deutsche welle has madehis known to the u.s. embassy in germany as well as to authorities in the united states. there was a report with the detailed information of what happened and how this transpired from our perspective. i don't know if u.s. authorities have donone anythingn terms o of ththe local level. it is s one thihing to complaind make federal authorities aware, but it has to go down to minneapolis authorities, to minnesota authorities, and there is where it is getting tricky. there were state troopers involved an metropolitan police involved. this is going to probably take a while. brent: what about the officers you had contact with in minneapolis? did they ever explain to you why they shot at you or offer an apology? was there any communication? >> [laughter] no, there was no communication. the only communication we had was when they threatened to mace us. we did not hinder any police activity when we were there, so, no, there was no communication, no apology, but i have to say other colleagues, i

friend were on their way to their holiday destination sunny beach with gold necklaces and west german deutsche marks hidden in their socks to pay for their planned escape. and you. think unleashed and i think that's. the. only people who had hard currency could afford to spend an evening in the trendy bars and expensive restaurants this paradise was also clearly divided into 2 camps . they want to sleep with the. rose garden the one to give you. have any influence board machine or a currency. you can see was one of those unlucky guests from east germany. but when. this hotel here wasn't that great. the room was reasonably nice but whenever we took a shower it would completely flood everything and we would have to wait half an hour before the water drained away. leave. today the hotel has been renovated is modern and inviting until 989 it was only for guests from socialist states. who used to be a translator runs the hotel now. directly opposite is the coup which back in the day was one of the most luxurious hotels on the beach. 10 west germans were also staying here in 1908. you quickly got to

you have yet to did with regard to the incidents involving deutsche of data of which we have also been made aware we will contact u.s. authorities to find out more about the circumstances we remain family committee generalists must be able to carry out that tusk which is independent coverage of events without endangering their safety it would appear to push democratic states under the rule of law have to meet the highest standards when it comes to protecting freedom of the press. standouts and entirety even though that was the german foreign minister there speaking let's discuss this now with correspondent stefan cmos he is in minneapolis and courtney were in washington d.c. courtney is the advocacy director of the committee to protect journalists to both of you welcome stefan let me start with you and let's show our viewers the moment when you and your team were shot at by police in minneapolis take a look. take. that on. the break this is perfect 6. for me i'm going to get out in the middle of the. very early they're. going to give. rise to the new yes we were doing a job and this is

it will be replaced by deutsche's -- on the 22nd of june. just under one hour away from the start of cash equity trading in europe. let's take a look at how futures are trading. if we do have gains today, it is going to be four out of five. euro stoxx 50's up one point -- 1.2 5%. ftse futures gaining 1% this morning. take a look at what is going on in terms of u.s. trade. we see on the s&p, the dow, and the nasdaq, all gains. just about 1% for dow jones futures. the leader among the three benchmarks. what do you see on the gmm? anna: let me just tell you what is coming through in terms of breaking news this hour. just while you are talking, we have a headline coming through on germany. closer to your home of course. german april factory orders falling by 25.8% month on month. the estimate was for a drop of 19.9%. for what it is worth, that is weaker than the estimate, but as we have seen with many of these data sets, a lot of economists questioning the estimates and validity of a lot of the data we are seeing at the moment. interesting to se

deutsch: and i know that have been talking about these for a while. it is worth pointing out -- he told the witness to "prepare to die." did the threats get worse? did they impact the witness' testimony? mr. zelinsky: they did. rep. deutsch: mr. zelinsky, would you say that these are serious offenses? mr. zelinsky: yes. rep. deutsch: help me understand, how do you come up with a seven year to nine year recommendation? and what were the enhancements that increased the sentencing range? mr. zelinsky: in coming to the recommendation we did, we do in every case, we consult a report that is prepared by the court. the relevant department of justice policies, and then we look at the guidelines. it is important to understand that the guidelines in this case is clear and the applications are readily apparent. it was not a tough calculation. after looking at that, we determined what a reasonable sentence would be in this case. rep. deutch: normally the department defends recommendations within the guideline range, don't they? mr. zelinsky: it is the policy of t

while the stock has been the best performing bank among peer, a lot of good news is priced ain and deutscheading wells fargo to buy saying it believes most risks for the stock have been priced in meanwhile, barren suggests it might be time to look at value opportunities and highlighted three deep plays citigroup, morgan tstanley and goldman sachs topping that list for them i think the interesting thing is that' ooempb though morgan stanley and goldman sachs are down 5 and 7% respectively year to date of the big cap banks on a price to book multiple, they're still pretty cheap because of course the investment banks are cheaper on that multiple compared to some of the commercial banks so it fits that deep value play in the way that barren books says, but you can understand the deutsche bank call if you're just looking at relative percentage performance year to date that selling goldman and buying wells fargo would maybe sense. still down 44% year to date. >> i think the segment was made for me and you >> mike and sara, you can go home >> first and foremost, i own morgan stanley i prefer it ov

either investigatinhis inaugural committee for the misuse of funds; deutsche bank, which was a big creditor of trump's; giuliani and his aw firm. shyo that's part ofhis got eyebrows raised. but then there's the part about john bolton. friday night, abc news released the transcript,n a clip of the interview with lton. the former national security advisor had written a very critical book of trump. he said the president told the president of turkey he was going to intervene the u.s. attorney's office to protect the state bank of turkey. that's why this has raised so many eyebrows over the last 48 hours. >k > sreenivasan: let's tout the rally in tulsa yesterday. there was a lot of concern that uring a pandemic, this wasn't the best id. the end result? > a> well, to put it technical, political science term, not good. daur., the public health officials in tulsa, were all saying, the worst thing you can do is pack people into a crowded rwhooe they're making a lot of noise, because that will spread the particles. b what basically happened was that the trump campaign was telling us this was going to

, a cnbc article from my producer, this is from cnbc, about fdny, one of their investigations of deutscheank, and also last year, it was reported that the fdny was among a group of federal investigative offices that were probing whether deutsche bank had complied with anti-money laundering and other laws. joich bank has reportedly loaned billions of dollars to trump's company and companies controlled by his family and the son-in-law jared kushner. it is hard to read anything good into that paul. >> the question is why does the president do this? it is because his attorney general lets him get away with it. he authorizes this conduct. so look, the southern district of new york went after michael cohen. they got him. now the southern district is going after rudy giuliani. and trump steps in. this is a part of the pattern, the president has fired five inspectors general. he fired the u.s. attorney in dc who was prosecuting the michael flynn case. his genius move of course, was to appoint bill barr as his attorney general. mr. barr is the president's enforcer. mr. barr is the president's, wit

if you had to do it with regard to the incidents involving deutsche eventa which of which we have also to be made aware we would contact us oath or choose to find out more about the circumstances we remain firmly committed journalists must be able to carry out their task which is independent coverage of events without endangering their safety it would appear to push democratic states under the rule of law have to meet the highest standards when it comes to protecting freedom of the press. standouts tartly. all right let's get more on the story now we can speak with nick waters from the investigative group belling cat which has been collecting and analyzing the instances of violence against journalists during these protests and he joins us from london hi nick i take us through some of the examples of how journalists are being targeted well so far we've collected 106 examples of all is against journalists and although in some cases it's clear that these journalists in to go between protesters and police in the majority of cases we seeing. them being talked of by police despite sleeping j

the loan was in 2017, with deutsche bank. deutsche bank is not speaking. braun is not speaking.atus of this company that was once viewed as the future of germany's financing division, it has been cut, the credit rating six levels by modi, to know one step from the lowest tier of junk. clearly, there are more details to come, but clearly an unusual scandal. back to you. rishaad: thank you very much, su keenan joining us. let's have a look with regards to these markets, having a look at a mixed bag, the lows of the day in essence, regional stocks kicking off on low values. it does create more volatility there. the hang seng, for instance, in hong kong, we're seeing those of one third of 1% lower. the sensex ended a while ago. elsewhere, people are mulling the impact of coronavirus outbreak in countries essentially, a lack of conviction out there. we're white we're -- why getting these paltry volumes, as it were. haslinda: that's right, has to do with a second wave of the virus. well, that is it from bloomberg markets: asia. bloomberg daybreak: asia is next. keep it here with us. t

deutsche bank and commerzbank moved to the upside. you see both of those banks up by more than 3%.ole is the biggest gainer today. no sectors in a negative territory. health care fairly flat today. matt? matt: cautious investors have been left reeling after a stock rally saw the s&p 500 index wipeout its 2020 loss. the index has never been this monthto analysts' 12 price target. joining us to talk more is xavier rolet, non-executive chairman of capital markets at shore capital and former ceo of the lsc. what -- lse. what do you think of this rally? we have seen big rallies in europe as well, even as companies -- governments around the world intentionally shut own economies. so many investors must have got this wrong. xavier: thank you for having me on your show. indeed, this is a question i get all the time, illegitimate one -- a legitimate one. there are a few things that drive the demand for equities. you are right, we have seen an amazing rally of the stoxx and the s&p. demanding, pretty pricey range. but keep in mind today that over a quarter of all that outstanding just debt o

alex any chance we can get a split screen of bob costa and donny deutsch?i know we're operating like mcgyver. donny, you have subtle shades with bob, he's got traditional furniture, he's got a washington post pillow on his couch. and i'm sitting there and thinking, i got to listen to this guy because he has profound insight. now, i'm looking at you and i don't know what's behind your head, is that a plant? is that an alien? i don't know what that is. what is that? what is that? >> it's a plant. it's a plant. >> why do you have it caged in glass? i don't understand. who gets flowers and puts them in glass? >> joe -- >> donny looks like he's living well to me. >> i spent a lot of time on my floral arrangements and i'm proud of it. i'm going to leave it at that. >> can we stay on donny here, that's the story. donny, that lamp in the back behind you, what is that? are those like cadilllackors th used to use? >> those are grapes. >> no the other -- those are supposed to be grapes. >> i think they're grapes. >> you know, joe -- >> i don't understand that either.

murat is the electrical engineer out of istanbul who has had a em starting asin a young economist at deutscheillion years ago. surveye a sentiment which judges the panic of em. how in a panic is financial emerging markets as they look at this economic contraction? murat: thank you, tom. this survey was conducted among investors from 198 institutions, billion, the$600 second half of may/early june. less than a quarter of investors are bullish. em prospectssh on in the next three months. they hold large amounts of cash. over 5% cash in portfolio. positioning is defensive. , they areeign credit overweight. the rest, including equities, is underweight. rogoffe distinction dr. makes, is that em economies don't have fiscal largess to help in economic slowdown. if they don't have trillions of dollars of aid, where do they get a system to create demand? murat: good question. that is sort of in our survey as well. it really becomes distant across regions. att investors look relatively comfortable asia, in the forefront, the region with largely domestic savings, more international reserves and more sti

deutsche bank loan provisions surging in the second quarter to the highest level in over a decade, ast grapples with the economic slowdown caused by the coronavirus. the cfos says the money set aside for bad loans will reach 800 million euros in the three months through june. owners suffered from the lockdowns in most of its key markets. to counter the hits, they plan to invest 900 million euros a year through 2022 to boost its e-commerce operations and expand store space. francine: thank you. prices slowed, suggesting an uncertain recovery from the coronavirus slump. still with us is anna stupnytska , head of global macro & investment strategy, fil investment management. we were talking about deflationary pressures in the chinese numbers. what kind of economy will we see from china in the next couple of years? will the transition to consumer, or will it be a more fraught relationship with the west? anna: i think it will be difficult for them to make its transition given how the customer has been affected and will continue to be affected by the crisis given social distancing. continue

persian b o a persian deutsch of l a persian all these others that are waging. psychological warfare against iran but then you know after a few hours i didn't actually know that there were these conspiracy theories i wasn't following the news today and then late this afternoon i discovered what had been going on it was actually something quite simple yeah well i was you know there's always going to be speculation with something like this something as explosive as this let me ask you then since you mentioned that would it surprise you or does it surprise you that people would be wondering if there's going to be a wag the dog scenario with an election here in the united states just months away or that israel what in fact do as it's always promised and hit iran again to wipe out whatever nuclear attempts it's making as netanyahu has promised to do why would that surprise you. it would surprise me because if there's rarely a regime were to strike iran iran would strike back much harder on israel as. it's very small compared to iran so their vulnerability would be mu

deutsche bank is warning provisions for bad loans will rise in the second quarter to the highest levela decade. the german company said the money set aside will reach $908 million. rising loan provisions are a threat to their restructuring plan as they try to restore profits after five years of losses. u.s. trade group for restaurants said its proposal for a stabilization fund could be paying for itself. they say the fund could generate $270 billion in economic activity. the senate has signaled the next fiscal response to the crisis will be more limited than that. that is your business flash update. taylor: it is time for smart charts. we look at timely topics through charts. we are going to focus on treasuries for smart charts. i'm looking at the appetite of the longer end of the curve. after an initial spike when the fed said it would buy bonds the same pace, the 30-year yield dragging lower for a third straight day. i have got a lot of commerce because of how the fed is supporting financial markets and asset prices, everything else we could be worried about is put on the back burner

the boards drilling down quickly at the start of the shift we were in the green and in the stocks deutsche bank in particular and now selling up 2 plus percent hsbc, two patches of green now i think it was up 2% at the start. that was significant turn around could see significant losses in the down turn caused by the dividend pandemic. share buy backs will be suspended until the fourth quarter. they need to resubmit the payout plans. shares in those major u.s. banks stocks fell in after hour trading and led the major averages higher. here is a look at how they stand in after hour trade. bank of america, lerl lynch. ecm government told cnbc that the banks had a tougher job. >> the issue of the stress test on the part of the discussion of the last two days. the first result was put on the table and from that perspective, i'm pretty confident that the stress testing is done well and that it will cover issues if they were to merge but one has to say that banks now a days have a difficult situation. on the one hand, they are asked to come forward to the loans to enterprises in difficulties. on

yours sarah vallow's at deutsche bank posting moments ago on a continued weaker dollar and continuesframe out euro-dollar at 1.15. the all-encompassing encompassing bloomberg dollar index, and with it all of a sudden we have some real risk-on feel here with futures up 12, dow futures up 1.09. that places dow spx back to 3.066, and the vix coming in at half a figure, 27.76. lots of other confirmations, including stronger renminbi today. please stay with us. from london and a new york in curfew, this is bloomberg. good morning. ♪ >> i think protesting is only a beginning to allow as to express our pain for over the years, and it is our calling out to have something done. you cannot legislate away racism. >> the emphasis to be on the quality of life, the quality of issues and making sure we speak to those issues. residential, recreation, economics, safety. "bad"re should never be a on any police in the world. if someone is bad, they don't deserve to be a cop. >> training has to be improved. it has to be better. it has to be more comprehensive in large departments and. >> small. >> we ha

sayingot deutsche bank that dollar weakness has more to go. little bit of softness in the oil price as well. manus: the dollar is almost like a wounded animal, isn't it? it was almost like a wolf that snapped back yesterday. but we can talk more about the dollar in a moment because vigilance is at play. vigilance but no change, that is the expectation of today's fomc. the central bank and the u.s. all but certain to keep its benchmark rates on hold. officials will also target the growth for the first time since the coronavirus outbreak with increasing focus of parities and the joblessness. fed's another on the agenda, potentially yield curve control. jeffrey gundlach expects the central bank to follow through with the policy if the 30 year rate becomes unhinged. he said stocks will likely fall from the lofty perch. he is not the only wall street heavyweight to voice out about stocks amid the pandemic. hedge fund manager has walked back his concerns. >> if there was a franchise for humble pie, oh my, there would be a mile-long to own that becau

deutsche bank and all the other banks as well. just -- there is a mystery about barclays.es: we have been pretty consistent since the beginning of 2016 when we arrived and launched the -- barclays is to be a universal bank. bank is is onel that combines a consumer business, we have a large credit card operation in the u.s., roughly one third of the gdp of the u.k. goes through payment system set barclays. we have branches across the country. the largest credit card operation in germany. you match that with corporate investment bank, and we believe we are one of the -- [indiscernible]banks in london. an investment bank and consumer bank. using that diversification to -- tom: that is well said. and stole -- to run your hong kong banking shop. hong kong and the news. how is barclays going to project at the margin with ms. chen in hong kong and this uproar? are -- thesly there whole geopolitical situation is complicated. we are a global bank. our friends in asia are important to us. we have a good team in hong kong and singapore, and tokyo. we are focused on the main financial

credit suisse saying capital markets have picked up that is providing a nice boost we've heard from deutsche bank ceo and reports from reuters suggesting that ecb is easing the burden on firms and households throughout the pandemic thus far. we are seeing a strong bid in financial services that is names like the exchanges and on the back of those comments suggest a pick up of the capital market that is volume for the exchanges and other financial services firm that is a look at the banking sector in the right direction, that is credit suisse's message. he described business conditions telling a goldman conference feeling quite optimistic saying after a volatile march, the system has been robust in may and june he's not the only one speaking optimistically about the sector. also believing the worst could be behind us that is according to an address at a u.s. conference but told colleagues that they should not take a false sense of confidence from the rally >> caller: the bounce back and magnitude has been a surprise to me we are still in a struggling some people are equating opening up to the

deutsche bank would agree with that.distinction of how money market rates adapt and adjust to the zero bound is at the heart of the matter. joining us with an important bloomberg column is william dudley. i want to go to a must-read. opens stronglways and fact-based. the federal reserve's balance sheet is exploding, growing by $3 trillion since march and exceeding $7 trillion. it could exceed $10 trillion by year end. most people don't want to hold large amounts of cash, most all of the money eventually finds its way back into the banking system. this essay should be required reading in any econ 101 course. clarityown away by the of explaining the process. there needs to be a follow-up to this wonderful essay and that is, what is the best practice of our central bank? what should they do about $10 trillion? bill: the hard part about this is once you have expanded your balance sheet by this magnitude, it will be a long time to get it back down to a normal level. they will be having to live with a big balance sheet for a l

inefficiency and our global system here is masto are looking at a chart that we covered last week from deutsche bank u.s. rising share of companies with debt service and costs that are higher than profits such a fundamentally important char american corporations are increasingly doing business only as a side hostile to their real purpose which is transferring cast from lenders to looters remember the lenders are you know that all of those bonds that are being put on to the federal reserve balance sheet this is what is happening it's being transferred to the zombie companies and they're looting well you know this goes back to something we've been saying for a number of years now that corporations only really have a profit in terms of what they can engineer on their cash desks as they're called right so you have like a car. companies in america they stopped making money making cars they made money leasing cars and then taking the income from those leases and building derivative portfolios and ponzi schemes and then the executives of buy back their own stock and then the options would go up in val

impacted users yesterday separately creating shares of soft bank that holds 25% of t-mobile and deutsche44%. pg&e is expected to plead guilty to 84 counts of involuntary manslaughter as a result of a fire that wiped out an entire town victim's family members are expected to speak. >>> shares of ww better known as weight watchers are jumping. getting a boost of higher subscriptions amid the coronavirus pandemic >>> a story we call won key but correspondent. despite all the rules put in place by congress, wall street has, as we say, new and inventive ways of finding things to sell like the hundreds of millions of mortgage-backed securities similar but simpler wall street product needs to be on your radar. clos, collateralized loan obligations. not what helped destroy the banking system in 2008 business loans generally made to smaller, mid-sized companies that do not qualify to traditional bank loans biggest differences no mortgages and none of the dangerous credit default swaps remember those, built into those the market has boomed in the past decade. the loan market is now $750 billion be