the european central bank has urged lenders not to pay dividends or bonuses until january 2021 it extends a previous call to withhold such payouts until october of this year the e.c.b. said it was necessary to ensure banks kind of zorba losses on the support lending to the real economy. american motorcycle maker harley davidson saw a dramatic 47 percent fall in revenues during the 2nd quarter of 2020 sales of motorcycles in the u.s. and around the world collapsed demick lockdowns close showrooms the company has announced 700 job cuts in an attempt to reduce costs. and harley davidson is just one of several u.s. companies that have been reporting results today our business correspondent joins us now from new york yes this set of course really figure is the 1st proper indication of how big an impact the coronavirus has had on corporate america tell us more. the overall it's not a pretty quarter but nobody really expected that take mcdonald's for example the fast food chain also out with earnings and revenue drop of about 30 percent by the way harley-davidson that was not all to blame on the

the european central bank has urged lenders not to pay dividends or bonuses until january 2021 it extends a previous call to withhold such payouts until october of this year the e.c.b. said it was necessary to ensure banks kind of zorba losses support lending to the real economy. american motorcycle maker harley davidson saw a dramatic 47 percent fall in revenues during the 2nd quarter of 2020 sales of motorcycles in the u.s. and around the world collapsed demick lockdowns close showrooms the company has announced 700 job cuts in an attempt to reduce costs. and harley davidson is just one of several u.s. companies that have been reporting results today our business correspondent joins us now from new york yes this set of course early thinkers is the 1st proper indication of how big an impact the coronavirus has had on corporate america tell us more. the overall it's not a pretty quarter but nobody really expected that take mcdonald's for example the fast food chain also out with earnings and revenue drop of about 30 percent by the way harley-davidson that was not all to blame on the pande

when european central bank officials meet in frankfurt today president cristina got to face questions on whether she has done enough to return europe's economy to health one area of controversy is how far the c.b. should go in buying up more dead from weaker as southern european economies like italy and spain at its last monetary policy meeting christina got almost doubled the amount of bones and other assets the central bank plans to buy under its pandemic emergency purchase program to almost 1.4 trillion euros let's go over to all the banks our correspondent in frankfurt i mentioned the fears of china going easy on stimulus what about europe. well i don't see any fears in the market so far on europe on the e.c.v. not doing its part not being prepared to do more if necessary but don't expect any announcements of the e.c.b. is jacking up that 1.4 trillion you just mentioned that was only decided 4 weeks ago any time soon madame lagarde the president made it clear as such in an interview last week with the financial times she said we have done so much that we have quite a bit of time t

institutions tast was supervising financial firms german regulator buff and as well as the european central bank according to reuters regulators fail to classify why our card is a financial holding and hold it to higher standards as for why a card score business experts stand by it i'm sure this is. in the end we should actually count of companies like why our card is a business with the future of this kind of payment technology. we know that our banks are past their peak and why a card looked like it had a golden future. however that promise only holds if tighter regulation ensures customers can trust that their payments are processed correctly . and as to the role of regulators the chair of the fin tech working group at the european parliament stresses yucca luna's told us earlier that others also failed in the y a cot scandal is what he said ordered as external audit is. failing to apparently they were basing the findings on the internal audit so there were several rings probably about where failing what we're talking about supervision and super was really has to be improved of course not onl

the european central bank chief christine legarde has called on your resume leaders to come to an agreement quickly on a coronavirus recovery plan batteries latest meeting the e.c.b. held back from topping up its vast pandemic stimulus for the euro zone the guard said that europe's economy was rebounding from the pandemic and probably passed the low point he said they have massively relaxed its monetary policy to respond to the crisis over the past few months bush said e.u. leaders now needed to do their bit and quickly agree on a huge recovery plan. well you leaders will meet later this week to try to reach agreement on that 750000000000 euro coronavirus recovery plan so are the e.c.b. and the e.u. on the right track to get the continent through this tricky period well that's a question that i put to some of the world's leading economists during an online panel discussion hosted by the world economic forum meetings in this program and we have a commitment to a column fiscal response with the european recovery fund now they're going to walk you about it on friday and saturday doubtful we'll

pushing for more stimulus anytime soon but on the monetary policy monetary policy side the european central bank has indicated today that it would be willing to keep in place its stimulus efforts through the middle of next year whether that will be long enough is still a bit of a question but they do seem ready to pump more money into the economy financial correspondent chelsea dillon anythings joining us. now in the same week as congress called them 2 powerful america's biggest tech firms of showing they're only getting stronger with impressive q 2 figures facebook came out on top reporting an almost doubling in profit despite an advertiser boy culture in the period meanwhile amazon posted its highest profits ever and apple beat wall street's revenue expectations however google's parent company alphabet announced its 1st ever decline in overall revenue was due to flagging abseiled. staying with tech a u.s. national security review of popular social media platform tick-tock is expected to land on president donald trump's desk any day now the investigation will address concerns about how the chin

and the european central bank chief christine the god has called on euro zone the this too quickly agree on a coronavirus recovery plan after risk meeting the e.c. be held back from topping up its exhaust and a big stimulus for the euro zone europe's economy is slowly rebounding from the pandemic. spain has held a state ceremony to pay tributes to corona virus victims and medical workers but the national strong. will is fall from spain again faces a surge in cases and an e.u. fund that could prove a lifeline for the country's battered economy is still not certain but today's focus was not on the future it was about remembering the 10s of thousands the nation has lost. it's been a difficult time for us country king philippe and his wife corinne the chiefs presided over the solemn and dignified ceremony for the $28000.00 spanish victims of the coronavirus. or usually are going to show right emotion and wish the memo to you today is a day that we will never forget. it will remain in our hearts. because today we are now with the alamos piety you know what you actually mean and the highest ho

the european central bank says bulgaria and croatia have been accepted into the exchange rate mechanism to as a precursor to adopting the euro as their currency over the next 3 years it paves the way for the 1st enlargement of the euro zone since 2015 lithuania joined the currency bloc as its 19th member. european union has launched a probe into a trade deal with the miracles or group of south american countries after complaints about its environmental impact activists said the deal cutting tariffs on farm products would have a devastating impact on the global climate. the german meat processing company at the center of the country's largest corona virus outbreak now says it will change its labor practices tourney's will stop using sub contracting firms and begin hiring employees directly it was already facing government pressure. turner said it intended to directly employ 1000 stuff by the end of september as part of a plan to end all sub contracting in its business before next year. the move is voluntary but comes as german lawmakers consider legislation enforcing direct hiring for me

matt: we got some lines earlier from the european central bank. european the finance industry, to freeze dividends through the end of 2020 into january 2021. what does that mean for your investors? banks continually turned into simple utilities? steve: i think it wasn't totally unexpected. we've been talking about this for some time, that this would likely happen. markets obviously will get some volatility on the back of confirmation, but ultimately, this is another cautionary measure. we've been talking about the covid environment in recent times in terms of deterioration of data. that leads to risk of increased bad loans. the ecb is taking a cautious stance and saying let's see how bad this gets before we allow people to go out and pay dividends again. once things normally lies -- normalize, dividend should be fairly healthy. ismarie: steve brice standard chartered. one of the darlings in terms of the pandemic. this is bloomberg. ♪ annmarie: welcome back to the european open, 10 minutes into training and european equities on the front foot. let'

the european central bank chief has called on eurozone leaders to quickly agree on a coronavirus recoverylan. after its latest meeting, the ecb held back from topping up its best pandemic stimulus for the euro. europe's economy is slowly rebounding from the pandemic. from the economy to people, many people who suffered serious covid-19 symptoms and survived have rehabilitation challenges. apart from the physical ordeal, the psychological repercussions can also have long-lasting effects on patients. we met one survivovor who is ony gradually getting back on the road to recovery. >> and breve. >> the lung test of the rehabilitation clinic is still exhausting for this covid-19 survivor. >> these are very positive results. >> i'm glad. >> she is making great progress. she was admitted to the hospital with bronchitis and a severe fever. her initial coronavirus test was negative, but she was later diagnosed with covid-19 with severe pneumonia and was put on a respirator by a doctor. >> it feels a first like water running into your lungs. i was terrified and feared for my life. i almost had a he

the central bank asks european lenders to hold back on dividends and buybacks until next year to conservehysical strength. precious metals shine, at the cost of the dollar. the fed's two day meeting could be a catalyst for further gains. good morning, everyone, and welcome to "bloomberg surveillance." i am francine lacqua here in london. gold is on the move. i also wanted to show you lvmh. it is down quite significantly investors --inted disappointing investors with earnings. the picture is that stocks and u.s. futures are pushing higher today. cooling somewhat but it did touch 2000 late yesterday. dropped after the french luxury conglomerate reports earnings that missed analyst expectations because of the lockdown. let's get straight to the bloomberg first word news. here is leigh-ann gerrans. >> good morning. senate republicans have unveiled a $1 trillion plan to bolster the economy. the package, announced by mitch mcconnell, includes an extension to unemployment benefits but at lower levels. it includes cash handouts of protection from virus lawsuits. >> we have one foot in the pandemi

german lawmakers have ended a legal standoff over the european central banks bond buying program. backad alliance voted to the program, cns keeter propping up the euro area economy. the dispute was sparked by germany's top court, which ruled the purchases could be illegal but kicked the matter down to the parliament. this vote means the bundesbank can continue to participate in the ecb's program. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. we have seen a bit of a mixed picture in terms of european equity index futures as india promises to reopen restaurants, pubs, and hotels after months of virus restrictions, and after american nonfarm payrolls surprised to the upside with an upward revision as well. let's get into the markets right now with laura cooper, our bloomberg mliv macro strategist. laura, what do you think is going to drive markets today more the positive -- positive data out of the u.s. economy yesterday? laura: that is the question, what can drive markets today? it is go

among the institutions task was supervising financial firms german regulator as well as the european central bank according to reuters regulators fail to classify a wildcard as a financial holding and hold it to higher standards asked for why a card score business experts stand by it i'm sure this is. in the end we should actually count. companies like why our card is a business with the future of this kind of payment technology. we know that our banks are past their peak and why a card looked like it had a golden future it was think it's who can believe however that promise only holds if tighter regulation ensures customers can trust that their payments are processed correctly. read it became the latest online platform to take action against hate speech on monday and closed 2000 and kill in a crackdown that the tech company says is aimed at community that promote. i called again and howard is here at the big table with me now to talk about this this seems like a big move why is it significant because many headlines that we've read of the past months and years have preferred to on the facebook an

they will probably get a shot from behind from the european central bank. is not much more they can do right now. they can always raise the amount of qe they can do. they have lowered interest rates butheir lending programs have not had to take him they anticipated. it doesn't appear there is a lot of demand for additional monetary policy in the economy right now. look for them to give us forecasts on where they think we are going and emphasize the need for fiscal help. vonnie: is there anything that might surprise the global economy from any of the central bankers? we will hear from the bank of japan. they have to be careful not to spook the markets. mike: i don't think you'll see any real surprises. interest rates are about as low as they can go, unless you want to get into parsing how many additional basis points you can get into. people have basically turned away from monetary policy, believing it is on its lowest setting. any additional action would be designed to keep rates where they are, rather than push them lower. if there is no qe additional in t

aren't anywhere near well enough if you look at the recent stimulus whether it's come from the european central bank or the bank of england here most of the the coded response payments and gone to low carb high carbon industries with virtually no conditionality attached and governments frankly are are not stepping up whatever they say what's interesting though is that the markets are beginning to realize that the future for both of us is much much weaker the decision by dominion to abandon the mid atlantic gas pipeline in united states recent announcement by the european investment bank that l n g isn't going to be a part of the energy future because it can be out competed by renewables what that shows is that the transition is actually had both what the fossil fuel industry and governments are already expecting. oil hasn't been the desired boon for countries like nigeria nor is it likely to be as long as prices remain as low as they are. you think about things like the environmental damage of the niger delta. the what's been the cost of foot from nigeria of trying to get on to the oil boom. it's i

also helping the stock a bit today david through the bars of course wayne hughes well on the european central bank you've had some pandemic advice for the euro zone's big banks which the e.c.b. been saying they're basically telling banks to to save as much money as they can so they're telling banks to not pay dividends to not pay big bonuses to executives and to not be buying back shares and till we see how how deep the financial problems are going to be for these things so they've put this in place through january of next year but we are still it's very unclear how much money banks are going to lose through the crown virus pandemic there have been estimates of between 400000000000 and 800000000000 euros worth of bad loans over the next several years so there clearly is is going to be a lot of financial stress going forward and they do need to have a pretty significant liquidity buffer ok frugality on a lot of people's minds right now chills delay need for us in frankfurt thanks very much. well in cameroon a long history of mistrust between hospitals in the public has been made worse by the chroni

european central bank chief christine the god has called on here is a need is to quickly agree on the coronavirus recovery plan after its latest meeting the e.c.b. held back from topping up its vast and david stimulus for the year is a europe's economy is slowly rebounding from deep and. now for many people who've suffered serious call the 900 symptoms and survived rehabilitation poses its own challenges apart from the physical ordeal the psychological repercussions can also have long lasting effects on patients. once a 5 a who's only gradually getting back on the road to recovery there's a fair assessment of the cost or oh my god and grief. the lung test at the rehabilitation clinic is still exhausting for durata. the berliner is a covert $900.00. yeah he's a very positive results. i'm glad you know who. here at the clinic name back to back she's making great progress in late may she was admitted to hospital with bronchitis under severe fever and initial coronavirus test was negative but after another test from a lung she was diagnosed with covert 19 lascivious pneumonia an inexperie

show those are very different attitudes be taken by the powers that they vote in you do get european central bank and order is situations and the world bank i.m.f. to describe a system was taken to ever charging years ago so therefore my conclusion is if they stick with that for a period i think we can get through this and not easily and bored with it in a fairly quick time spent. john the soft of the well i'll continue my conversation with the 2nd longest serving prime minister nitish history they have to have. the world is driven by a dream shaped. thinks . we fear to ask. problem drugs has come from unscrupulous dealers but from pharmacies to in every state in the united states we see a very sharp increase in the number of people seeking treatment for addiction to prescription opioids invaded america under the banner of medicine persisting with the pain but instead of trying to wean him off though she just goes after dose after dose after dose and really became his drug dealer soon is to blame patients manufacturers. welcome back i mean conversation with beth to have 2nd longest serving prime

and what about the city when it comes to recovery plans the you in the european central bank are they on the right track when it comes to getting the continent through the crisis that's a question our business reporter rob was put to some of the world's leading economists during and online panel discussion hosted by the world economic forum. what do you have a commitment to a common fiscal response with the european recovery fund now they're going to walk you about it on friday or saturday doubtful we'll get a decision at 5 minutes past midnight by st deprived politicians as we always do but i think we will get. eventually a commitment to a common fiscal program and that's why i call for europe's stability over the medium term the problem of course is that the scale is still relatively limited. and that there is a great deal of dependence on the national government still leading in terms of fiscal policy but i think we're going in the right direction we are very much impressed with the european union's comments nance saw climate change and he said this and then it also starts great op

unfortunately the reality of it is a long way in the a long way in the future which means the european central bank will need to be very proactive in keeping borrowing costs down in order to make economic conditions as easy as possible in the absence of a fiscal response. very briefly please what would be the economic impact of a 2nd wave. we're already starting to see the effects of that now and i think close attention to the services pay and eyes from spain and italy next week if they show no signs of going about 50 then the economic situation in those countries will get gradually worse michael hewson thank you very much thank you u.s. president donald trump drawn cross party criticism after suggesting a possible delayed to this year's presidential election trump who currently trails democrat joe biden in opinion polls has no authority to change the date which is set by lol trump later backtracked but continues to push claims and the increase in mail in voting due to the coronavirus pandemic would result in fraud. even for president trump it was a rapid u. turn after floating the idea of delaying

italy or more are almost double that so will this deal now close that gap the head of the european central bank has said that gap is putting the very survival of the euro in danger do you think the deal will get money to those southern countries in such a way and quickly enough that it can close that divergence. i salute greed of the diversion. not only in the euro area but especially of the single markets is a very. very bad thing and what's changed the minds of the leader of the summits i think it's was the throat above the. woods of the single market but some comes to us off the corner crisis we're actually developing. and the populists in those countries can actually change the political lines of those countries so the economy divergence can cause social lot of divergence and social good of the of the day version can have a vote in the got to embark on the political unity of the you know and i think that's old of the deuce on the still did very well and that's why we have does this isn't the summit so let me ask you this eric. the dire economic prospects that are facing those southern europ

european central bank chief christine legarde has called on eurozone leaders to quickly agree on a coronavirus recovery plan after its latest meeting the e.c.b. held back from topping up its vast pandemic stimulus for the eurozone europe's economy is slowly rebounding from the pandemic. you know from the economy to people many people who've suffered serious cohabit 900 symptoms and survive have rehabilitation challenges apart from the physical or deal these psychological repercussions can also have long lasting effects on patients. met one survivor who's only gradually getting back on the road to recovery there's the faster. i got entry. the lung test at the rehabilitation clinic is still exhausting for the road and. the berliner is a covert 1900. variables a difference out. oh i'm glad you know who. here at the vibe clinic name back to back she's making great progress in late may she was admitted to hospital with bronchitis under severe fever an initial coronavirus test was negative but after another test from a lung she was diagnosed with covert 19 lists of pneumonia and inexperienced doctor

for going financial reporter conrad boson is joining us from frankfurt where the european central bank is of course based so how much of a surprise was this for people where you are. quite a surprise sara because. your also had the backing of germany but as it turns out of the smaller member countries of the euro group obviously had been under a mess on the estimated again you know countries like belgium the netherlands the baltic countries don't like it usually when you know the big member countries of the euro group already decide about everything before the vote and let's not forget kind of angel ones called the smaller northern european countries very small countries with very small weight and that was perceived to be very condescending and arrogant something that donahue is said to absolutely not be just briefly conrad in terms of policies apart from coronavirus recovery plan what will be most important for the euro group chief. the banking union more of an integration of our banking and financial system at presque isle donahue might exactly be the right person to restart this pro

the european central bank has left its monetary stimulus policy unchanged following several months of dramatic intervention to deal with the covert 19 crisis e.c.v. boss christine loh god says the bank is ready to adjust its various instruments if needed the e.c.b. have massively relaxed its monetary policy to respond to the crisis over the past few months in june and ramped up its emergency bond buying program from 750000000000 euros to 1.35 trillion euros in addition bond purchases were extended until at least the end of next june. our financial correspondent lee barnes is watching all this from frankfurt only tell us more about what. the president christine legarde had to say today. well she explained why the e.c.b. took these measures or respectively did not take any additional measures she sees and her you see the colleagues the european economy picking up there is. it's picking up in the summer she says it will or will be but she's dampening experted expectations that this was it that there might not be another bottoming out and so she says that it's an unsteady recovery this su

. >> the european central bank and other banks launched instruments to elaborate on negative rates fors. massive purchase of securities. were temporary instruments, but in fact, they mastered so the nonconventional instruments have become conventional instruments. there is a second change to consider. policies.al budget in short, germany has turned out to be comedian. ynesian.easy and -- ke >> our response must be designed for the future. it should allow us to revive our economies and at the same time make a leap forward. we need to accelerate the transition, strengthen our sovereignty while remaining faithful to our values. nejra: edward smith is still with us. you are approaching europe with quite a bit more caution than a lot of people we speak to. why? edward: one of the reasons is that recovery fund that everyone got very excited about. yes, it is certainly a milestone . the first time we are seeing germany accept the need for both fiscal transfers within the euro area and the use of the budget and the genuine stabilization. step in thetely a right direction but it is a temporary

the european central bank may ask banks to hold off on dividends, at least through the end of the yearbloomberg has learned that several ecb board members do not see enough clarity to justify restarting payouts. the decision is not final. president trump reportedly asked the u.s. ambassador to britain to help get the british open golf tournament late at his course in scotland. the president asked woody johnson to see if the british government could steer the tournament to the trump resort. the ambassador raised the issue, but failed. 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. this is bloomberg. francine: thank you so much. let's get back to the housings -- housing sector. joining us now is sanjiv das i'm a he has caliber home loans chief executive officer. the largest mortgage companies in the u.s.. sanjiv, right to speak to you. i was reading through some of the things you sent over. loans that people ask, even in a pandemic is increasing. does that support the fact that we could see a hou

making show those are very different assets be taken by the powers that they vote in you do get european central bank and other is situations and the world bank i.m.f. to describe a system was taken to overcharging years ago so therefore my conclusion is if they stick with that for a period i think we can get through this and not easily and bored with it in a fairly quick time spent. john the soft of the well i'll continue my conversation with the 2nd longest salving prime minister nitish history they have to have. was a pandemic no certainly no borders just blind to nationalities. has emerged we don't know but certainly we don't look like world peace to be. a judge of. commentary crisis at least the same things. we can do better we should. everyone is contributing to each of our own way but we also know that this crisis will not go on forever the challenges create the response has been masked so many good people are helping us. it makes us feel very proud that we are in it together. world is driven by a drunk. person. dares thinks. we dare to ask. problems drugs don't always come from unscrupulous d

still to come, the dutch central bank governor tells us why he thinks european economies should not leanvily on monetary policy. stay tuned for that interview. this is bloomberg. ♪ the dutch central bank governor klaas knot says europe should not lean heavily on monetary policy as the main line of defense against coronavirus fallout, and there is risk of an uneven recovery across the euro area. he spoke at our webinar. guest: clearly if left unattended, there will be asymmetry in the recovery. fiscal packages and fiscal space has been asymmetrical, so the physical response has been more forceful and more immediate in some countries than in others. there is also the difference in economic structure. some countries are more dependent on things like tourism, which has taken an immediate hit. differences in economic causedre also have a symmetric consequence, asymmetric shock. the amount of flexibility, that is the point where i personally believe the dutch economy -- why the dutch economy is doing well, because we have a high degree of adaptability built into our economic structures. so yes

the ecb's request -- the central bank asks european lenders to hold off on dividends and buybacks until next year to conserve fiscal strength. and precious metals shine at the cost of the dollar. gold futures touch $2000 for the first time ever. the fed's two-day meeting could be a catalyst for further gains. good morning, everyone, and good afternoon if you're watching from asia. this is "bloomberg surveillance." francine lacqua in london, tom keene in new york. the rally is fitting somewhat. stocks are up, but we look at the stimulus in the u.s. and the fed meeting to give us an indication of what the economy will or won't do. tom: the stimulus is front and center, and you go to the articles and late-night, the real effort, francine, for people here to talk -- i was really impressed that the white house members went up to the hill on the weekend. that is highly unusual. there is an effort to do the facetime, but let's not kid ourselves, they are far, far apart. i can't convey that for everyone in america, the clock is ticking for july 28. francine: rent needs to be paid and fees. let'

the european central bank who is essentially kind of sticking her nose in all this is well saying it needs to be an ambitious plan a big plan and if you come with a kind of a or a small or a careful plan as the frugal 5 would probably call it then that's not going to get it done that's what needs to be extremely ambitious but when you use language like that you're really kind of pushing everyone who are leading them to say there's only one right way to do this and i think that's what you're seeing is a complex here over whether or not there's only one right way there are many ways remember as you said this was supposed to be a 2 day conference that's going on for days now and plus and now it's the longest meeting since 2000 and all of this you know hillary i want to play some sound from the austrian chancellor here. susan says this is a serious issue because i believe we can make lazy compromises here there was a certain degree of flexibility among many countries who we spoke to countries have agreed that we will hold on to a very clear position if you're not willing to go below a ce

i am reminded by what christine lagarde, the president of the european central bank said recently atbecause they have the emotional intelligence. so, do you think, tina, that the plaudits women have received for their leadership roles during the pandemic may actually say, actually, we want to see more women in positions of power right across the sectors? could that be a real opportunity that emerges? well, i hope so. i'm smiling broadly because here in the united states we actually have the examples where the cities that have done better are the ones led by women, and especially by black women. here in chicago, mayor lori lightfoot, mayor keisha lance bottoms in atlanta, mayor muriel bowser in dc. you know, it is the women mayors, in addition to the women leaders of countries that are doing the right thing. they are listening to science, they are staying true to this, they are reacting as mothers and they are bringing that instinct into caring for their cities and their countries, and, you know, i do think it is an example to set for the world on what women's leadership can do and me