georgina taylor from invesco stays with us.he u.k., how badly is the economy going to be hit in the coronavirus lockdown? we look ahead to this week's gdp data and the big trade on sterling. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." i'm nejra cehic in london with manus cranny in dubai. in the second quarter come u.k. gdp plunged to levels not seen since 2003. the median forecast is for a 20% fall come a sharper slump than european peers and the recovery is made harder by local spikes in cases. that gdp number is due on wednesday at 7:00 a.m. u.k. time. georgina taylor from invesco asset management is with us. an idea that is fairly esoteric. the norwegian krone versus the pound. georgina: i think the pound has been something we put on the sidelines for a period of time but with the risks around growth , i think the drivers of growth are so uncertain, lockdowns where construction has been turned back on, we might get better data but the services structure -- sector will be under pressure. maybe it isu.k.,

coming up on the program, we will talk more about the fixed income market with rob waldner of invesco. just at the epicenter of some of the shifts we have seen cross asset worldwide in the last couple of days. asa: we are definitely seeing bleed up in the benchmark 10 year real yield. leading to questions, is the ,elloff in the treasury market does it have legs? jonathan: tom on vacation. those vacation days are racking up for tom keene. on the bond market, treasury yields higher by three basis points on the 10 year to 0.67%. in foreign exchange, the euro $1.1770, up 0.25%. 0.7%e s&p, we are positive . good morning. heard on bloomberg radio, seen on bloomberg tv, this is "bloomberg surveillance." ritika: with the first word news, i'm ritika gupta. china wants to discuss tiktok and we chat at upcoming trade talks with the u.s.. the chinese will bring up president trump's perspective trump's president perspective bans. joe biden is counting on, harris'-- on kamala harris' ties to the progressive community. he made history by selecting the california senator as a running mate, the first

atlor: the senior strategist invesco is still with us. i know you said you favored equities over treasuries, but how does high-yield and credit look? i was looking at our high-yield barclays index. i thought 500 basis points over treasuries looked at one point, and down further, we migrate. how are you viewing credit at this point? >> i think we are being incentivized on credit, and i expect we will be -- incentivized to own credit and i expect we will be for a while. these moves that presage a recession, and that is the time when you need to hold true and by corporate bonds and investments that always bemoan the low yields never seem to want to do so. you get the policy response in an economic recovery and spreads suspect that is what we are moving towards. spreads are still elevated compared to where they were for a lot of the last 10 years, so there is still some potential value that exists in those parts of the market, but ultimately, the federal reserve is going to be active in the corporate bond market. the federal reserve will not

lira into turkish the weekend. , was aup with invesco more complete macro view, brian levitt will joinis a simulcast on bloomberg radio, bloomberg television. this is "bloomberg surveillance ." ♪ >> you are seeing a lot of divergence within the market in terms of valuation. >> there is a disconnect between what is happening in public equity markets and what is happening on the ground. >> the worse the data looks, hopefully the more impetus for fiscal stimulus. , we got got less supply demand being stimulated, and that should lead to higher prices. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. it is a simulcast on bloomberg radio, bloomberg

brian levitt is with invesco, their global market strategist. we are thrilled he could join us today with a more broad view from what we have heard from discrete equity strategists. as you right into the weekend from monday morning, what are you thinking about? brian: i am thinking about everything you are talking about, which is to say a few weeks ago, everyone was focusing on this recovery in the markets, and do we move to the more cyclical, deeper value parts of the market, and should we expect a steeper yield curve and further deterioration in the dollar. it seemed up the time that investors may be getting a bit ahead of themselves. given how covid has been playing out, it came with some fits and starts, and as a result, i think getting too far ahead of playing the cyclical recovery was going to be problematic. so we are sort of back to where we were, which is to say investors are looking for growth where they can find it. low rate, low inflation, relatively weak growth environment. tom: let me ask a dumb question for the day. we spoke earli

>> we saw some consolidation etf industry invesco made a couple deals in prior years and they've really pruned their lineup to make room for offerings as did ishares and wizardry etf is a bad environment for them, so we saw a number of these leveraged and inverse products shut down this is a niche part of the market, but more exciting and what we're seeing launch at esg and we'll have possibly a record year for etf -- >> i think his shot froze. we'll go back to it, but elizabeth, the ones todd described using leverages and so forth, is this shakeout a good thing? >> you know, i think in many cases turnover in the etf industry is quite healthy, especially when funds that aren't sustainable go away it means that the rest of the optio auctio options are a little more sustainable. one thing that we've done recently is all of our exchange-traded notes are now rated at least a medium and possibly a high because in addition to all of the factors that todd mentioned, we've also seen a real rash of closures of the exchange-traded notes. >> and what does that say to you, elisabeth >> it says that

. >>> the s&p 500 at another record high but invesco's top strategist sees one trap that could foil thegnation.cnbc.com more "squawk on the street" coming up. now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪ >>> protesters clashed with riot police in wisconsin one day after a black man was shot by police in the back multiple times. the officers involved were not wearing body camera technology, one concern. the city had reportedly planned to buy more than 100 body cam a cameras from our next guest this year butdelayed that due to funding shortfalls and other concerns rick submit is enterprise ceo and founder, launching a new autonomous drone program that will

and chief investment strategist and brian leavitt is global market strategist for north america at invescomorning to you both. brian, i'll come to you first. this recent rotation, we've seen attempts at it quite a few times. not just in the last couple of months but the last couple of years. do you think it lasts this time? >> yeah, i think it lasts here we're following a consistent pattern in a recovery. you would expect to see at some point the more economically sensitive parts of the market start to participate and you're starting to see some better signs with regards to cases. there's obviously a massive policy response from the federal reserve. we're likely to see, at least the market is expecting to see, more support on the fiscal side and then obviously there's some hopes around therapeutics or vaccines as you're talking about this morning if you believe that this recovery is feeling like fits and starts >> do we need to see a full stimulus deal in congress for that to continue >> well, i think the market is precipitated on that eventual y eventuality. if we don't get an additional