europe does not restrict our room for maneuver in a globalized world europe gives us more room for maneuver it is only with europe that we can maintain our freedoms. and so more than ever before we need to focus on fundamental rights we need to mutual assistance and support solidarity a community spirit of europe will only be safeguarded if we offer innovative responses to the challenges of climate change digitalize asian and our responsibility in the world those are the huge challenges facing us but i am confident look back at the various tests and trials that europe has already overcome the failed to treaty the constitutional treaty 15 years ago the economic and financial crisis and the tough battles we have there nor the mass movement of refugees 5 years ago it's never been easy in there have always been moments of heart but the most bitter prices have helped us to listen to better understand the needs and concerns of others we have learnt together europe has overcome all these prices. because at the end of the day everyone is aware of what is in valuable fundamental rights and cohesion.

so pretty free over the rest of europe is the key function. don'tdon't fight the fed, fight the ecb. thank you for joining us. coming up, the world health organization says the virus now hangs around water droplets. more on what we are doing to contain the pandemic. this is bloomberg. alix: -- alix steel with guy johnson. haslatest in the u.s. revolved around schools within new york city, the mayor saying that kids could go back to will in september for about two to three days. president trump really weighing in heavily on reopening schools and pushing back against cdc guidelines. joining us now is a senior pharmaceutical analyst for boom lurk intelligence. this -- as this debate becomes politicized, what's the science behind this? sam:sam:. my firstquest --sam: question for you is there anything that isn't politicized in the u.s.. we have to deal with the scientifically, rather than making it a back-and-forth partisan issue. we do the children, generally, there are examples of kids who got covid-19 and had her e-cig -- horrific disease, gener

europe, better-than-expected, but still in retraction mary territory. we have also learned that the french foreign minister will be soon, as he has resigned. now we have leigh-ann gerrans. hi, leigh-ann. leigh-ann: hi, nejra. this comes as president emmanuel macron is open to revamp his right presidency, including a new top team. he wants to keep pushing for reform, controversial in france. brexiteers on a bright agreement -- broad agreement, despite talks this week ending a day earlier than planned. they are looking to near i so cold -- a so-called landing plan. both acknowledge major sitting points do remain. passedna bill has congress and now heads to president trump for approval. the legislation would impose sanctions on chinese officials who crackdown on dissent in hong kong. the house and senate moved quickly to pass the legislation after beijing imposed a new national security law in the city. elaine maxwell has been arrested --jeeves lane maxwell ghislaine maxwell has been arrested. epstein'ss jeffrey close associate for years. u.s. prosecutor s

are happening all over europe. there is a need for europe to come together to talk about this. alix: i wonder how all the dynamic plays out between china, europe, russia, and the u.s. in that we have a lot of regression in the u.s. because of nord stream 2. then you have china in the background as well. how do these chess pieces wind up playing around each other over the next six months, particularly as we gear up for election year in the u.s.? election is the key issue here, and i think europe is not going to want to show its cards on china before they know what is going to happen in washington, whether donald trump or joe biden will be sitting in the white house in january. in europe, there is a desire to ensure -- they are very aware that russia and china have been working more closely together and french president emmanuel macron has talked about reaching out to russia to create some european space between china and the united states. deal isthe nord stream a slightly separate from the considerations about relations with china and the united states, but certainly there are

you know that many member states in europe are involved in the transatlantic partnership but europe needs to rely here on itself we need to be able to decide the future of europe in this rapidly changing world we need to decide whether we take europe seriously whether we want so europe's identity to be safeguarded in times of crisis so we need strong european foreign and security policy now one key partner will remain the united kingdom we need to shape our future relationship and that would keep us busy over the next 6 months progress in negotiations thus far have been. to put it to diplomatically we've agreed with the united kingdom to accelerate the pace of talks to reach an agreement by autumn an agreement that can be ratified by the end of the year i will continue to push for a good solution but we should also prepare for a possible new deal scenario. during our presidency we need to do everything within our power to focus on 3 further foreign policy goals firstly on accession conferences we need to engage in talks with north macedonia and albania so that the western balkans accessio

then the other question is how is europe managing economically? and as i think i heard steve saying before, this very difficult balancing act between health and the economy means that a country like greece or portugal, which shutdown early, is now facing very serious economic consequences. and we now have, yesterday and today, european leaders meeting to try and sort out a rescue package, and we had exactly the same disagreements going on as we did during the european financial crisis, where northern countries, in particular the netherlands, mark rutte of the netherlands, the prime minister there saying we cannot issue corona bonds which are a new version of euro bonds, to mediterranean countries without some quid pro quo. without some sort of quid pro quo. huge challenges cropping up in the european summit this weekend. steve, one last one on the uk before we leave this topic. another thing that happened last week was boris johnson accepting that there would have to be an independent inquiry when the pandemic is over. these often cost a lot, they

dead sending the signal that she's intent on holding europe together what ever it takes. joint appearance with french president in manama macaw saw her sacrifice what have been a german fiscal principle for years no joint e.u. debt proposing the 1st 500000000000 of the corona recovery plan for the 1st time germany agreed to guarantee debt that mostly benefits other e.u. countries like italy a potential game changer we had the impression as watchers that germany e.u. policy was paralyzed so now corona happened and the giant started to move and i think this is a very good sign. at the same time europe struggles to stay out of the way as relations between the world superpowers china and donald trump's america further strained by the crisis in germany we don't know exactly what the world order is going to look like coming out of this will we have a cold war between the americans and chinese that is actually an open question right now and there's no question that how you respond to a crisis like that will be the most important line in the obituaries that are written for many p

what do you and others in the west of europe say to a fractious eastern europe? >> well, first of all, i must say i travel that distance down to florence in absolutely no time. i think in negotiations, there is always going to be tension. this time it was on the level between the north and south, -- then on the conditionality of the value issue, it was between the east and the west. i think where everyone landed was somewhere smack in the middle. i feel quite comfortable with this package. i'm happy about the outcome. tom: i'm very curious of your thoughts at this raging pandemic debate over the path taken by sweden. it is just a fascinating scandinavian experiment. from out the path from oslo to stockholm to helsinki about how you all treated this virus. >> it has been quite different. sweden had a very what i would call a liberal and relaxed way of approaching it. norway, did way, finland, partially in iceland we went into -- well, i would say locked down much immediately. the results can be seen. i -- we don't know enough about the virus enough at this stage.

debt sending the signal that she's intent on holding europe together what ever it takes. joint appearance with french president in manama mccaw saw her sacrifice what had been a german fiscal principle for years no joint e.u. debt proposing the 1st 500000000000 of the corona recovery plan for the 1st time germany agreed to guarantee that most benefits of the e.u. countries like italy a potential game changer. we had the impression as watchers that germany e.u. policy was paralyzed so now corona happens and the giants started to move and i think this is a very good sign. at the same time as europe struggles to stay out of the way as relations between the wild superpowers china and donald trump's america further strained by the crisis germany we don't know exactly what the world order is going to look like coming out of this will we have a cold war between the americans and chinese that is actually an open question right now and there's no question that how you respond to a crisis like that will be the most important line in the opiates you areas that are written for many p

is way bigger than what we see in europe. much weaker lower potential growth and realized growth in europe and a huge amount of structural problems because of the nature of the region. i have not seen anything that suggests to me that europe's economic outlook is in any way better than the u.s.. it is actually much worse, because the virus has been re-spreading in the u.s. in a more aggressive fashion, it has led to this narrative that the growth outlook is equally better in europe. i don't agree with that, and you rightly point out, we are seeing some numbers, very early stages but we are seeing some numbers in terms of virus spreading in certain regions which we -- which could be concerning. -- one of if not the highest in the g10. that is a real problem at this time of year, because you're already seeing responses from other countries which will be a huge negative hit for the tourism sector -- sector. past thaten in the carrying the burden of a stronger currency is not easy. alix: staying with us, james athey of aberdeen.

will be boosted we invest in europe's future. and finally. unlike in previous crisis is this time member states have not opted for an intergovernmental agreement but they haven't trusted the european commission of europe's recovery we will together manage a total of $1.00 trillion euro the bulk of the money will be channeled through the programs in which the european parliament is involved. next generation e.u. comes with a great responsibility and we are determined to bring about reforms and investment in europe. nevertheless i must also mention a difficult point in their search for compromise leaders have made far reaching adjustments into the new m.f.f. and next generation you for example in health migration external action invest you they have not taken up with the solvency instrument this is regrettable it decreases the innovative part of the budget even if more than 50 percent of the overall budget m.f.f. and next generation you will support modern policies and so finally to conclude europe as a whole has now a big chance t

are fully aware that this is a historic moment in europe. we are currently in one of the most difficult economic and health crises but nonetheless europe it. is managing. having worked really hard to tackle this crisis in a really effective way and this will benefit the e.u. budget and it will link solidarity with responsibility solidarity here because all 27 countries together her. parents support next generation is your responsibility because next generation the e.u. it doesn't just point the way out of the crisis but also it serves the very foundation of a modern and sustainable europe one of the tool more points we have now on the new own resources tightly linked to the repayment this is a big step forward with a clear timetable member states will benefit as they will contribute less to repay the investments and the new on resources will strengthen the european union also in the long term. i'm glad that we managed to safeguard this achievement during the whole negotiations. and europe's recovery will be green the new budget will power th

the world health organization says it's worried about the coronavirus situation in europe just weeks after the countries that started to reopen their doors to tourists. china's foreign ministry says its embassy in the united states received death threats because of beijing hysteria whipped up by the trump ministration to the u.s. the chinese consulate in houston 72 hours to shut down. great to have you with us this is r.t. international. anger over the deployment of federal forces to the u.s. city of portland shows no sign of dying down president donald trump's decision to send in the troops to stamp out nearly 2 months of anti-racism protests only to the situation. i. guess you're. right. the mayor of poland was tear gassed by federal agents as he stood with protesters. claims that he's lost control of the city how we get over it doesn't that as i've already asked the time for the destruction to remove federal forces from all hold concerts and the 2 other u.s. cities so just discourse today from the place of the loudest since the arrival of the right. you all chicago's merit as citi

the narrative is go to europe, go to europe as a safe haven, by european equities. is the right take away from a market perspective? davide: from a market perspective europe has been underinvested. if you take the average u.s. investor, they have less than 2% to 3% located to european equities, less than emerging markets, and right now is the wrong position to be in. equitiesrly european -- in europe we need less shortened fiscal stimulus because our social welfare platform is strong anyway. we do not need anyone to get short on subsidy because they lost jobs. congress does not have to pass us -- theecause for same for health care. health care is free to everyone. in order to fight the pandemic, europe is better equipped. if we see brexit with no deal? we seem to forget there is still this thing moving and it does not seem to be a way forward. what does that do to european equities? to be clear, this deal was possible thanks to brexit. this deal, at a commission level into state-level is the first positive sign of actual brexit. finally, the last of the continent --

but also in europe it's not quite clear how europe will react and germany has so far try to meet the americans demands by building a new terminal in northern germany and we recommend instead of building a new energy terminal hydrogen terminal should should be both that would fit into the energy transition goals but also into the hydrogen strategy and that would also hit the kompany the u.s. a fraction companies as well comfort from the german institute for economic research thank you so much thank you china has responded angrily to u.s. accusations it's sponsored hackers who are seeking to steal covert $1000.00 vaccine research to chinese nationals are indicted for stealing hundreds of millions of dollars worth of intellectual property and trade secrets from companies across the world prosecutors say the hackers stole information not only for their personal profit but also research and technology that they knew would be of value to the chinese government. i mean while china is demanding the u.s. to stop making such claims accusing the u.s. of slander out let's bring in chelsea delane

to europe east roche europe. after 4 days and nights they finally agree on the details of loans and grants to be given to member states hit hardest by the pandemic so who won and who lost the program. germany since the start of the high profile trial of a man accused of targeting a synagogue in the city of hama and killing 2 passes. welcome to the program european leaders of seal the deal precedented $750000000000.00 euro coronavirus recovery fund after 4 days of often heated talks leaders finally agreed on the details of loans and grants to be given to countries hit hardest by the pandemic of the $750000000000.00 total $390000000000.00 will be in the form of grants the remaining $360.00 will take the form of cheap loans it's a compromise that satisfies the demands of more fiscally conservative member countries good morning everyone we. dude it's europe is strong europe is united level for these were the words the delegates have been working towards a deal has been done and the wrangling can stop everyone can go

italians that do not understand europe or don't trust europe. what needs to happen over the next one to two years so that we don't fall into the hands of another breakup of the euro? i think forknow, italy there is no more room for mistakes at the european level. in the last 10 years, two big mistakes. the way in which the euro crisis was managed 10 years ago and the problems with italy, and maybe the most damage with public opinion, the way the refugee crisis was managed. today i don't see any more room for mistakes. this is why i think what europe needs until now and the last .onths is very positive what is very important is to continue and to be sure that this announcement will become reality. and the announcement of public plansn, euros, and europe are not just announcements for the media, but this announcement normalizedreality, people in the streets. otherwise frustration will substitute the present trust because in the last months, i think there is a recovery of trust. march is a horrible month with the polls against europe raising in ita

europe does not restrict our room for maneuver in a globalized world europe gives us.

contributehould also to changes outside europe. , countries, europe companies are trying to implement new technologies, which are more environmentally friendly and contributing to the fight against climate change. this is something which is exactly following our political priorities. alix: commissioner, thank you very much. it was good to talk with you. johan hahn, eu budget commissioner, thank you very much. this is bloomberg. ♪ ritika: time for the bloomberg business flash. look at some of the biggest business stories. american airlines is mortgaging its brand. the carrier is getting 1.2 million from goldman sachs -- 1.2 billion from goldman sachs. like other airlines, american has been hard by the collapse of travel caused by the pandemic. warren buffett's berkshire hathaway is planning more money to bank of america. millione bought 850 dollars of bank of america shares. he is the bank's largest shareholder. bank of america has plunged 30% this year. alix: something everybody will be watching are any headlines that come from d.c. the clock is ticking on a new stimulus plan. it se

is making 750000000000 euros available especially to member states and southern europe. we shall continue to work together in the coming months to ensure that europe makes it through this crisis which will continue to affect us for a very long time to come. germany is also spending a lot in response to the pandemic to protect its industries which is central to the economy it's providing more than $500000000000.00 euros that in the united states the government on the federal reserve has so far made to want a half trillion dollars available to support the economy. but what about poorer countries how are they fairing. which questions begin with germany and europe 1st of all these huge amount of spending that we just heard about does it amount to something that is going to have the kind of impact like and the new marshall plan here in europe potentially for europe it could and that is something that has been touched on but obviously it depends on whether the e.u. as i agree to it they are going to have the negotiations on the 17th and of july but apart from that we've also h

also this hour the world health organization says it's worried about the coronavirus situation in europe just weeks after countries there start to breed opening their doors to tourists. and china's foreign ministry says it's an embassy and the united states received death threats because of the anti beijing hysteria whipped up by the trumpet ministration as after the us gave the chinese consulate in houston 72 hours to shut down. watching our to international bring your live news update from our studio here in moscow welcome to the program. anger over the deployment of armed federal forces to the u.s. city of portland shows no signs of dying down president decision to send in the troops to stamp out nearly 2 months of anti-racism protests only aggravated the situation. by. no you are right. here you're there along. with. the mayor of portland was tear gassed by federal agents as he stood with protesters the white house claims he's lost control of the city for over a dozen mayors have already asked their trumpet ministration to remove federal forces from or halt plans to send them to othe

less keep a tension on europe because after 4 days of tense negotiations the $27.00 e.u. countries reached an agreement on choose the on a post coronavirus stimulus package the french president hailed the plan of historic but opposition members didn't call that a bug deal for france. this recovery plan is based on european solidarity is a historic change for the european union and the eurozone think it's a common goal based on solidarity and responsibility because there's a planned refund deadline the goal isn't solely to leave all of this on the backs of future generations so this is a common desire to invest which will enable us to properly face the social and economic but also it's a logical challenges of our european union. macron has just signed the worst deal for france in the history for you to protect his ego he sector feiss our future and our independence european taxes abandonment for agriculture colossal financial commitment of the country micron has given into everything contribution discounts to tight fisted countries spending controls the reduction in the am

world health organization says that is worried about corona virus in europe just weeks after countries started to reopen their doors to tourists. china's foreign ministry says its embassies in the united states have received death threats because of the anti beijing he styria whipped up by the trumpet ministration after the us gave the chinese consulate in houston 72 hours in which to shut down. good morning great to have you with us this is r.t. international. anger over the deployment of armed federal forces to the us city of portland shows no sign of dying down president donald trump's decision to send in the troops to stamp out nearly 2 months of anti-racism protests only aggravated the situation. i. i. i. i i. i i. the white house claims the city's mayor has lost control of the city but over a dozen men as a whole ready asked the trumpet ministration to remove federal forces from more home plans to send them to other u.s. cities protesters calls to defund the police of government louder since the arrival of federal agents. meanwhile chicago's mayor is citizens to inform the police

situation in europe just. started opening. in china say's its embassy in washington received death threats. being whipped up by the. chinese houston 72 hours. one minute past 9 am and 11 pm in tokyo and 5 in the evening right here in moscow this thursday july the 23rd welcome to r.t. international. an intense standoff is developing in the u.s. city of portland president donald trump's the citizen to send in federal troops to crack down on anti racism protests appears to have faded the situation. right. there why. it's reported tomorrow portland was among those tear gas federal officers. with protesters the white house they must be has control of the city however more than a dozen u.s. most of them democrats voiced the alarm over the federal crack on the verge the trump administration to pull troops all its of american cities meanwhile calls from the police amidst all riled the writer. well the mayor of chicago has emerged citizens to inform the police of any unconstitutional actions committed by the federal forces earlier mr t

francine: what does this mean for europe? i do not know whether it translates, tom -- come 10 days no one will care about the summer, it was a disaster and the markets will move on. nathan: i think this is another part of the market effect that has been priced in over the last six weeks or so. i think the euro has strengthened due to the policy response from the ecb, but also the anticipation of this recovery fund. , myon the margin expectation is that this agreement will reinforce the euro, and that along with the monetary stimulus, and as i said earlier the favorable position of the european economy's as they come out of lockdowns, i think that puts europe in a relatively strong position and is likely to be distinct lovely -- distinctly positive over the next few months. alix: if i had wine and chips i would probably also remember that. that sounds weird. francine: i have that everyday. income, nathan, it is always wonderful to catch up with you. walmart will be paying out another cash bonus to the store club and distributi

-- isurope united europe united were divided? it's really -- is europe united or divided? it is really not funny anymore. tom: how do you boil this down for our american listeners? they are like, we've seen this plenty of times. jonathan: if europe doesn't get a hold of it this time, it will be another 10 years of crawling out of an economic hole in a suboptimal way. we will have crisis after crisis, political episode after political episode, and redenomination risk that dominates global markets. we do not want to see a repeat of that. we need some progress on the continent. tom: part of this is my reading this weekend, and i am behind on ig versus high-yield. we've got a massive debt yield nation.is we see new debt coming on. how fragile is high-yield? lisa: there's concerns that the likes of carnival and norwegian cruise lines are going to lose more money at a time when their whole industry has been thrown into existential angst. there's been more interesting high-yield at a time of states facing the underlying backdrop of fiscal support globally. the idea that all of th

that, or does europe feel strong armed by washington?” that, or does europe feel strong armed by washington? i think until this point, europe has been able to hide behind the uk and the assurances that the security threat from having huawei systems in place could be controlled, but now that the uk has reversed course i think europe feels much more tracked between a hot rock and a hard place between a hot rock and a hard place between displeasing its ally, the us, and losing out on at the economic benefits, especially after the pandemic offered by good relations with china. because it is notjust huawei. china is germany's biggest trading partner. there has been, as you say, over the last year mounting concern in europe over chinese human rights valuations, in hong kong for example. —— violations. there is a lot of debate and discussions going on in europe right now. it is under pressure from both sides. celia, you pay close attention from the chinese perspective on this. one thing that struck me was on hong kong, a lot of european c

visited every news live from berlin charting a course for europe's recovery on the american sets out her aims for the e.u. was germany takes over the council presidency the main goal is to contain the pandemic and overconfidence consequences is also coming up after pressure from more than $200.00 scientists the world health organization and many difficult run of iris could be transmitted by tiny particles suspended in the air so what does that mean for our behavior and our health. cost millions of people in the australian city of melbourne are locked down again the government says it is the only way of preventing a catastrophe. i'm sumi so much going to thank you for joining us german chancellor angela merkel has called on the european union to unite and emerge stronger from the greatest challenge it has ever faced the coronavirus pandemic at the european parliament in brussels merkel laid out her vision for germany's council presidency which will be dominated by economic recovery from the pandemic she will come to the e.u. commission's plan for a massive relief fund for struggling e

the possibility -- and in europe. the possibility is that the pandemic could make things worse by fueling nationalism. on the other hand, it it could force people to rethink and think more clearly about how the international system needs to be structured to serve people's interest. so i am hopeful that there will be some rethinking. tom: professor, this has been wonderful. inlook forward to seeing you our studios in london, maybe a pandemic removed. now, new york city, our first word news. >> in new jersey, a gunman reportedly dressed as a fedex driver and shot and killed the son of a federal judge and wounded her husband. law enforcement says it does not know of any specific threats against her. lastly, she was assigned to a lawsuit against deutsche bank linked to jeffrey epstein. the european union is set to sign off on a key proposal. the netherlands, denmark, and sweden are satisfied with $450 billion on the fund being made available as grants. the rest will be in the form of low interest loans. the e.u. leaders w

is it the work you look for europe writes no. also on the day a committee of m.p.'s from britain's parliament accuses the government of badly underestimating the threat from russia and failing to investigate the possibility of russian interference in the bratz it referendum so the question is who is protecting british public from interference in our democratic process in a nutshell we found no one is. after 4 days and 4 nights of tough and often bad tempered negotiating the european union has agreed i don't precedented 750000000000 euro coronavirus recovery fund countries hit hardest by covered 98 will receive loves and grants to try and river . bath and economies of that 7c5xb3c9xb will be available as grants the other 360000000000 will be in the form of cheating lungs but it was a hard sell some countries held out to the last against if you start a departure from previous fiscal also doxy and the introduction of shared debt good morning to everyone and we did it europe is strong europe is united level for these are the words the delegates have been working towards

there is no safe haven assets in europe. a stronger ecb and we also need to negotiate something stronger when it comes to the union. otherwise, this will be the scenario that will push the spread up again. this is something we want to avoid at all cost. more we are going to talk about that with you, load event -- ludovic and also what we see happening over in the u.s. coming up, los angeles on the brink of another stay-at-home order. the florida democrat says the spread of the virus in that state is out of control. we will discuss the impact on business and the economy next. this is bloomberg. ♪ anna: welcome back to the european market open. europe's first trading session of the week. downequity trading is about 0.5%. as we make our way through this losing awe seem to be little bit of momentum. and we have maybe dialed back our expert nations from the news from brussels. astrazeneca a focus for markets today. rally the share price solidly during the european session on friday. and then it moved higher in the u.s. on frida

you see it coming back in asia, in europe. you see the situation is not yet under control in the americas. so, we are really still in the first phase of this crisis. to --is not even useful we are still at the beginning. and the challenges central banks are facing now is to manage the crisis. nejra: the bank of international istlements's benoit coeure staying with us. 6:30 a.m., we will hear from .ay dalio this is bumper. ♪ -- this is bloomberg. ♪ nejra: this is "bloomberg surveillance." still with us is benoit coeure of bank for international settlements. a form or ecb executive board member. we had a wide-ranging discussion just now over the role of central banks in dealing with the coronavirus crisis, but in your role as head of the innovation hub, i wanted to ask about what sort of rule innovation or digital innovation is going to play over the next few years. benoit: i think that innovation will be absolutely crucial to lift us out of this crisis. we see the crisis already being -- bringing a push to our digitalizatio

in europe, that is not the case. we just heard the commissioner, that it is going to take a long time to ratify the deal that has been agreed at the leader level. then it will take a while to raise the money. then they will finally disperse the goods. in the united states, if we agree to more checks for americans, they can get that out pretty quickly. more checks for americans certain within this agreement. the price point, right now i would say it is one $5 billion, coming down from the democrat $3 billion. jonathan: we've got peter tchir with us of academy securities. it is about signal, not size. how transformational for the continent you think this is? peter: i think this is great news. europe offers some value on the market side of things as well. say, there's been time getting this first wave through that should open the door for more going forward. we've been waiting for this for a decade, so it is really good this is happening. i think it is interesting. markets times, american seem to ignore these transforma

europe was slow, too. but the ccp's cover-up of the coronavirus, an outbreak that began in wuhan, china, which has now killed tens of thousands of our people and hundreds of thousands of people across the world, i think it's accelerated everyone's awakening. europeans, like americans, are starting to find their voice. the commission in the external action service last spring identified china as a systemic rival. very important acknowledgment. the lithuanian intelligence services national threat assessment identified china as a potential threat for the first time in 2019 and did so again here in 2020. the g-7 condemned china's national security law targeting hong kong. i greatly appreciated, too, how the u.s. called out china for its disinformation campaign surrounding the pandemic. it's also not just words. the new alliance on china is gaining steam. united kingdom has a strong stand against the ccp's attempt to crush hong kongers' autonomy. the czech republic has secured networks, clean networks in 5g, an

and europe's role in the world in the future. 2 weeks ago i discussed this in some detail and today i just like to refer to a further challenge facing us in the presidency of the e.u. that is the question of the future relationship between the european union and the united kingdom the progress made here to be cautious about it have been modest what we have agreed with the u.k. is that we will accelerate progress here so that in autumn we can have some kind of an agreement that will be then ratified later i would push for a good solution but we must and should in the e.u. and in germany prepare ourselves for there being no deal with colleagues here at the expectations of germany and. your presidency are high and i can say on behalf of the german government that we are determined to do everything in our power so that as europeans we can make progress together for europe within europe and with our international partners and i would like to ask all of you and your contacts to the parliaments in the member states. to support our targets within the german presidency because only if we get t

so in europe how do they find the data at the hands of the big tech companies so we're seeing europe lead the regulating charge. the u.s. is probably more challenging because the more they impede the big tech platforms in the u.s. does that then have a knock on effect to the overall position there's a more complex situation. >> it's interesting what you make about europe leading the regulatory charge when we know that europe lagged both the u.s. and china when it comes to creating these innovative big tech players and when we talk about the broader european market and the scope for europe to outperform the u.s., the biggest bear point is that there are no titans in europe. >> it's an interesting point and europe is clearly, clearly pushing the regulatory front arguably they have unintended consequences increasing the dominance of big tech. it has lead to gdpr like regulations globally but it's also lead to lots of focus on data globalization and some markets and obviously in europe it's completely unacceptable i think one of the key points and these would be important in the views go

let's look at the details of the close in europe. just closing up now in europe. the stoxx 600 saw some of these losses accelerate into the close. volume sterlite. they're off by 50% of what it usually is this time of day. ,e see stocks down in the closing it 0.9%. , ecb has abe a day rift emerging on how programs of the allocated. much of this is about that ecb with news in france as mccrone shuffles up the cabinet. the ftse 100, one of the weaker regions, down 1.5%. one of the big losers in all european stocks today was rolls-royce, down 10%. may need more fundraising. it shows how weaker balance sheet is and liquidity situation , the dax is lower today. here in the sector red except for travel and leisure. they are introducing air bridges, you can travel to the u.k. without having to quarantine for 14 days. that's going to be a big boon for some of these situations. basic resources, oil is lower today. when you look at this, it's a value and momentum play. technology is not falling as much as the rest. it's huge play in the u.s. with the nasdaq closing at a rec

today's headlines the world health organization says it's worried about the coronavirus situation in europe just weeks after countries there started reopening their doors to tourists. and china's foreign ministry says its embassy in the united states received death threats because of the beijing hysteria up with by the trump administration that's after the u.s. gave the chinese consulate in houston 72 hours to shut down. a very warm welcome to the program from all of us here at our teacher in moscow thanks for joining us this hour. anger over the deployment of armed federal forces to the u.s. to the of portland shows no signs of dying down president all in terms decision to send in the troops to stamp out nearly 2 months of anti-racism protests only aggravated the situation. are right. or wrong. if you're here there are long term effects you're gonna get. the mayor of portland who you just saw there was tear gassed by federal agents as he stood with protesters white house claims he's lost control of the city however over him doesn't rares have already asked the trump administration to remov

versus europe? find that the u.s. versus europe is interesting. the company's in the u.s. to a better job of setting pre-earnings targets that are lower. if you look at the earnings supply data, the u.s. is doing far better than europe so far. in the second quarter, that probably makes sense. we will see that in the later gdp numbers. the outlook for european companies will be better than the u.s.. nejra: ok. let's take this through to the credit space, which you watch closely. seeou think we will defaults rising into the second half of the year, based on what we are learning so far from earnings? bill: yeah. the default cycle in this crisis has been very mild. a lot of people think credit has done well because of central bank work. in my mind, it's fiscal support. showsly interesting study that were it not for a number of somewhereports, between 40 and 50% of companies would already be dealing with liquidity surges. i think these are going up in the second half of the year. how much depends on the question of fiscal fatigue. can governments continue to support companies?

taking up loans to boost the economy in europe this is the kind of things the europe can do but the rest lies at the number states where you are belgium has been seeing a spike in cases there's so threatening actually that authorities are considering imposing another complete lockdown could belgium cope with that. but the government here in belgium is threatening a lockdown but they don't really want to have a lockdown because of what's be detrimental for the economy and belgium also for tourism so they try to bring in measures that would keep this in thing no easy and people are not allowed to see as many people only 5 per week now and budget is hoping that this really do the trick numbers up in better but they also not as high in absolute numbers at they were in april and may but it is very some it is a reminder that the pandemic is not over and still more ahead when we come to fall and winter dan thanks so much for that from brussels today. now to some of the other stories making in the news this hour hong kong authorities are warning that city is on the verge of a large scale outbrea

this is "bloomberg daybreak: europe." republicans unveil a trillion dollar aid package. more direct payments to americans and liability protections for businesses. gold futures touched $2000 for the first time ever. could the fed's meeting be a catalyst for gains? wrote -- erode. don't miss our conversation with the ceo of automaker psa group. we saw gains on the s&p 500. the benchmark erasing last week's drop. the rebound in tech stocks overshadowing a slide in banks. futures on the front foot today. postinguropean futures gains after we saw europe's benchmark close in the red yesterday. pretty much flat right now. the 10 year yield back above. the dollar at a 22 month low. gold futures touching 2000. if you look at the spot price we are trading at 1009 hundred $45 an ounce, edging up 0.2%. havee republicans presented a rescue plan to bolster the u.s. economy. before that, breaking headlines. 300 millionabout euros as an impairment in the second-quarter results. that is the headline just crossing from ing. we will bring

we are long europe. we think europe will benefit from a stronger currency. improving relative macro in europe and we think emerging markets, despite the trade war with the u.s. and china, will benefit from fed liquidity and from the weakening dollar. nejra: and you talk about euro strength in your outlook benefiting some of the domestic players. how much further do you expect the euro specifically to benefit to the upside from dollar weakness, and therefore, to impact here strategy versus domestics? emmanuel: there are two in play in the effects market. one is the weakness in the dollar coming from the massive fed liquidity put into the tariffsnd the risk of with china. packagethe recovery approved by the eu plays a significant step to more integration. are seeing good development's the pandemic in europe relative to the u.s. so far and the macro recovery has been strong. nowed, stronger europe for should not be a headwind to further betterment for the someean market but takes rotation away from exporters toward the domestic part of the market. in the last f

today return to normal in europe when it comes to covert 19 but ask coronavirus restrictions of being lifted or loosened the world health organization is warning about a potential spike in the virus with eastern europe and the polk and is deemed to be particularly at risk. we still have some worrying trends in southern europe in the balkans so we're not out of the woods just yet in the european environment it requires sustained vigilance just 2 months ago montenegro was declaring itself corona free not anymore it seems 2000 cases of the virus have seen social distancing and lock down measures reintroduced but. you may be forgiven for thinking that western europe would force off the worst the pandemic count to offer but there's also been spikes there as well in spain for example the number of new infections has tripled recently in this peaceful use of the ozone the swimmers have been relaxed is where outbreaks happen is not only family reunions or other types of gatherings where we've had a good number of new outbreaks but also in places where there's been evening entertainment they ha

it is more pronounced over in europe. tomorrow,ry about when that enthusiasm, that initial my world has changed feeling starts to unwind. i worry that could happen in the markets. the earningshere season starts. i think it is going to get really interesting. we will talk more in a few minutes time. stocks that are really driving high. take a look at tesla. we are north of 80% over the last 10 days. the s&p is up by 1.24%. european stocks up by 8/10 of 1%. bdp's are faring relatively well. we are waiting to see what is going to happen on the back end of this week. storyl be a significant as we get a rating based on the 750 billion euro rescue fund. you want to pay attention to what is happening. , potentialbig supply for it to strike. that is another factor that we need to throw into the mix. what we have coming up later, we will speak to the outgoing boss of the euro group. he will be joining us to give us his take. and wille the governor be transitioning over to the ecb . we will talk more about the fiscal side of the eq

and europe, we get more data. we have contraction data for the second quarter for frank's just a little earlier this hour. that is it for bloomberg daybreak europe. plenty more earnings to come. i will speak to the cfo of natwest group. ♪ >> good morning. welcome to bloomberg markets. mattin london alongside miller and berlin. last trading day of the month. last day of the month. >> happy friday. the endets say, is that of the good news? as european nations start reporting gdp slumps, the markets look for any

and europe. translate -- i just narrativey to tie the in china to emerging markets because you have a pretty strong core in terms of emerging market sovereign debt in hard currencies. what is the most attractive? just talk us through that. it links exactly to your introduction on china really. when we were looking at how we were managing risk in the portfolios of our clients come up where did we want to increase our exposure? the emerging markets were the first key place for that reason. andnew china was first in we knew they would be able to get control of their of economy using fiscal levers. china dominates the emerging-market complex. as china's incremental growth comes through, the government debt has been forming well in the hard currency space. ill, we have mark -- ok, bill, we have more work to do. coming up, banking pain. are expected to stay in their numbers this week and analysts expect the worst since the financial crisis. that is next. this is bloomberg. ♪ manus: it is "daybreak: e