Trade talks. How long can the relief rally last. Cuts at Deutsche Bank. Jobs aser could slash part of its Restructuring Plan. Investment banking likely hit the hardest. European leaders pull another allnighter in the search for the next European Commission president. Is the momentum with the dutch socialist . This is the European Market open. We are less than half an hour away from the start of equity trading. Lets look at futures. No surprise after the g20, after the truce, after the huawei surprise, no surprise therefore we see european futures higher more than 1 . We are a picture as expecting it to unfold in the european session. Let us take a look at the asian session. Havens out of fashion. Chinese equity market up by 2. 7 . Of positivea result risk on news flow items. Most of it connected between the u. S. And china. We see havens very unpopular. The dollar surging. The japanese yen being sold. The dollar one of the gainers. The yeneeing sorry, being sold, also the euro under pressure. Gold prices down by 1. 6 . Investorsobviously coming into stocks and out of fixed income. A lot of questions as to how markets deal with the fed. We will pick up that conversation with our markets life team. Live team up. Australia continues to push upward. Cotton in the frame because of what we have heard about china. We have not seen the list. We do not know the details. Brent crude, wti, up as a result. The saudis and the russians have managed to signal to the markets they are keen to continue production cuts. Lets get a first word news update. President trump has become the first sitting u. S. Leader to set foot inside north korea. He met kim jongun at the demilitarized zone. The leaders agreed to restart nuclear talks. The next European Commission chief. Angela merkel has endorsed a dutch leftwinger, but that got pushback from her colleagues. Donald tusk is trying to shore up support for the appointment. To convinceying beijing it is not responsible for the arrest of huaweis cfo. Hsbcinancial times reports gave information that helped build a case. She is under house arrest after being arrested in december. Global news, 24 hours a day on air and tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna just want to bring you live pictures on the ground in hong kong. Protesters resuming their attempts to break in to the Legislative Council in hong kong. We understand police have been using pepper spray on protesters trying to break in. This is a day of holiday in hong kong. The stock market is closed. Usually this is dominated by conversations on the handover from a britain to china of the territory. You can see protest activity, which we had seen earlier this month, of course are restarting. Mark cudmore, our bloomberg , goods a live editor morning. Good to see you in london. Let me ask your initial thoughts on the question of the day on the markets live blog. How long will this rally last . We have seen the truce. Are we talking about a lack of detail . Absolutely. It still means good news. That should be a relief rally. It could last a few days, it could last the whole week. We have had this slew of terrible pmi data. Billion, all 10 of them decline since last month, which is extreme and shows deterioration is universal the trade slow down is going to affect all these economies. The trade truce is not just about no more tariffs. They need to remove tariffs in place. Anna a lot of comments from economists saying, we still have the threat, the risk, of further tariffs. It is not the time to rethink where we are. Pmi, we put together this intentionally confusing chart to show that picture of asian pmis coming down. Many of them below 50. Onhave the positive risk news for the g20. We have the underlying economy, still slumping. What does that tell us about fed expectations. The market has to decide, how much support is needed . Mark the market is going to trade for a rate cut later this month. He economy is down enough i would argue what the fed does is not going to be enough to change the cycle. There is going to be pressure from the markets. We are getting that relief in rates. We are getting cut price pressure. When it comes to the end of the month, we are going to be back in this conversation. They are definitely going to need to cut. Anna the strong dollar, talk to us about that. We see the dollar index up 0. 4 . That is a big move. Mark you have higher yields, you have the euro undermined by merkel. You have the surge in oil. It used to be good for the dollar. The dollar relied on imports for oil. Now the u. S. Is an exporter. It is a perfect storm of good news for the dollar. The yuan help to the story as well. Bloombergsudmore, markets live editor. How long will the post g20 rally last . Reach out to us, ib tv is the function to use. We are bringing you live pictures. Protesters carrying umbrellas. Resuming their attempts to break into the Legislative Council. Police have been using pepper spray to try and fire them back. They have been calling for the resignation of carrie lam. Had a turn. Y she delayed extradition legislation. Hong kong protesters want more. Continuing,rotests we will be back with the latest. Anna welcome back to the european open. A decent surge at the start of the European Equity trade today. The cac and the dax getting substantial, the ftse 100 even, up by 0. 3 . Expectations about what could happen on the trade front between china and the u. S. Will boost markets elsewhere. That is what we are seeing in the asian session. Protests in hong kong resume. Breaktrators trying to into the city legislature. Sophie kamaruddin is on the ground. These protesters are trying to get in. How big is the protest activity today . A holiday because of the handover anniversary. How big are protests compared to recently . It is a Public Holiday in hong kong. We are seeing different scenes unfold in the city behind me at the Central Government complex. We are seeing protesters chanting as police attempt to disperse the crowd. One segment is attempting to break into the Legislative Council building. Police are loading rubber bullets. Earlier this Morning Police used pepper spray to push back protesters trying to disrupt the flag raising ceremony. Several were sent to the hospital after those clashes. Hundreds of protesters gathered here. About 1000t protesters altogether. Civil human, a rights and they will not change their plans to continue the march which starts on the eastside at 3 00 p. M. The c hrs saying they reject the proposal to end the march at southern park. In years past, the march reportedly attracted a crowd as big as 400,000 people. We already saw hundreds gathered there at victoria park, filling up the central lawn. Rallies took place last month which drew more than one million protesters. Anna thank you very much. That developing story as protests continue in hong kong. Continued calls for carrie lam to quit. Another developing story with oil. Ces surging to a fiveyear sorry, fiveweek high. Saudi arabia and russia signaled their support for output cuts on the sidelines of the g20. Opec plus Oil Ministers gather for a series of meetings today and tomorrow to discuss production policy. ,anus cranny in vienna for us all over this opec coverage. He is joined by the founding director of the center on Global Energy policy. Good morning to you. A brave man joins us now. Good to see you this morning. We have the announcement from mohammad bin salman and putin, more importantly, that they support an extension. How important was that messaging before this opec disruption . Everyone expected rollover. It wasnt surprising it came from heads of state at the g20 meeting instead of opec. That might have rub some members the wrong way. Nine months gives more confidence to the market and helps show russia is in this for the long haul. Iny can reassess the meeting december. Issues get resolved in russia, showing russia would have the ability to increase, they are still committed to the deal. It is important in the messaging, whatever they announced. Tomorrow, they signal saudi arabia remains willing to do what is necessary to continue to manage the market. There is so much uncertainty in both directions. The resolution of the trade war, which could be bullish, to Political Risk in the gulf. Iran, obviously the waivers, getting exports to zero is Mission Number one, for the american administration. How much pressure do you sense at the moment . Know what irans exports actually are. It is fair to say the u. S. Has been more successful unilaterally taking irans exports close to zero than anyone thought was possible. A huge amount of economic pressure on iran and they need to do something to get trump out of his comfort zone and find some path to a negotiating resolution. Suggestingicans are there is a high degree of confidence iran was behind the attacks that took place in the isait of hormuz, but there no concrete evidence from other nations. How can iran fight back . Iran is going to look for opportunities, hitting a drone, doing something to show there is a risk of escalation in that region. They are going to do something that forces the u. S. To either retaliate or find a pathway to negotiation. Trump is trying to put maximum pressure on iran, but wants to avoid military conflict. You cant have both without a pathway to negotiation. 1987, reagan said it tonot the United States job protect the strait of hormuz. Are you surprised trump is so nonchalant . U. S. At is different is the is on a net basis almost a zero percent importer of petroleum. The perception is think is the straits dont matter. Strait of does the hormuz not matter more . It does matter, and we know because trump has repeatedly gotten on twitter to call on opec to increase production. He knows what opec does matters for u. S. Prices. Manus what is the biggest unknown . Trump and irant negotiate echo trump fancies himself as a great dealmaker. The possibility he could try to get a better iran deal i dont think iran knows what that is is a situation out there the market needs to be considering as well as escalation of conflict, as well as a trade war or a resolution of trade conflict with china. There are so many uncertainties. What is that worth to this market . You are going to see a couple of dollar premium as a combination of Political Risk and positive news on the trade front. We still dont know what is going to happen with the trade war between the u. S. And china. Thank you very much. That is my guest here in vienna. A very good day. At the center for Global Energy. Good morning. Anna good morning. Thank you for that conversation. Protect yourself from those strong rays. The tliv blog running if you want to get across what is going on in vienna. We will of course bring you coverage later. Next, a look at the stocks to watch at the open, including Deutsche Bank. The german lender continues considers cutting jobs worldwide. Anna six and a half minutes to go until the start of the European Equity session. Lets get your stocks to watch from around the newsroom. Jp joins us from our equities team. Dani burger is with us focused on the tech sector. Bank, more gloomy headlines in terms of job cuts. That is true. The bank is set to cut 20,000 jobs around the world. More than a fifth of its total workforce. 1 to 2 . Investors appreciate the move. Costs,y will they cut but also where they want to go. The on the tech sector, reader cross in the g20, whether it can supply huawei and not fear recrimination from President Trump, but also the rivals listed in europe. There is so much that can move on this. We cannot talk about trade without talking about tech. Hopes that some of the disruption we saw in the supply chain will go back to how they were. Already rising more than 4 . Rivalssaid, it is those that benefited from that huawei band. They might be under pressure. Anna thanks for joining us. You can get all the stories you want to follow, first go is the function to use on your bloomberg and on the mobile app. Lets go back to hong kong now as we get ready for the start of the European Equity trading day. No trading in hong kong. You see a hole in the glass of the Legislative Council. Protesters have succeeded in breaking the glass outside. They have been trying to get in. Organizers have changed the end destination for this march. This on the day that typically commemorates the handover from of this asianna territory. No trading in hong kong because it is a Public Holiday. Protest activity continuing. Calls for carrie lam to resign continue to come from the protesters. As we wait for European Equity markets to open, and open strongly on the back of those developments at the g20 trade truce, the agreement to restart talks and the huawei surprised. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Until thenute to go start of cash equity trade this morning. The picture in asia is strong, up. 8 . 08 . The risk rally was started by the truth. They restart trade talks between china and the u. S. Strongly, 2. 7 . We have the hint production cuts put into place will be continued by the saudis and russians. Thats something were following. The euro is weaker. The dollar is stronger. The yen is weaker. The euro is weaker. Futures point higher. This is the picture on european features, ftse up. 08 . Also watching iron ore and oil prices pushing minors and Oil Companies hihgher. We finding will ourselves declaring all market territory . That should all market territory bull market territory . That should happen. We could see lower liquidity. Well watch for that in the swiss market story. Were waiting for the market to show off their pricing at the g20 outcomes in osaka over the weekend. The dutch market biggest to the upside. The ftse of 9 10 of a percent. Up 1 10 and euro stoxx of a percent. Heres the euro, down 4 10 of 1 . Many of the heaven place have been unwound in the currency market. The swiss franc is down and the dollar is strong. Some of this is having an impact on equities in just a moment. Lets talk about where we are on the sector picture. No surprise, across the amec, imap, very few areas of red. One in utilities. Generally speaking, this rising tide is lifting these both. Thats what weve got for the markets. No surprise, bp and shell are doing well. Movers. Ok at individual weve got this mov screen for you, which shows where we are on equity markets. This is the picture we have with ams moving to the upside. This is the tech sector, reactions of huawei news and risk on sentiment. Arcelormittal said their stock is higher. To the downside, exdividend today. Weve also got your see no as an ex dividend. Lancia move slower, down 1. 5 . 600stocks on the stoxx moving higher this morning. The move higher is a broadbased. Interesting to see what is going on with swiss stocks, rising 0. 9 after it loses eu recognition. Detailslve on the later. Opens lower after easing huawei restrictions, down just. 25 , erickson down three quarters of a percent, but undersold. European markets opening rodlike higher. Broadly higher. This comes after president s trump and xi open a trade truce. Joining us is jeremy. Lets start with the big picture, around this risk rally and how long it lasts. Weve already seen people throwing cold water on that. Give us your thoughts. Remy weve come into the start of the year with probably as good a tone as you could have out of the g20. Thats the good news. How long will this last . We are talking about negotiations. And theres negotiations can fall offkilter. Seeing a are risk on rally, rate expectations can be qualified or undermined in the context of data. I think that is a dynamic to keep in play. Better fromeen weekend events, but were somewhat circumspect in anticipating longerterm. Weve got a lot of data to get through, which could be demonstrated of the deceleration over the first half of the year. That may have an impact on risk recovery. Anna well take it, but remain circumspect. Worth pointing out germany, the german dax doing well today, 1. 8 set, answerable market. That will be confirmed upon the closing of this session, as we are in bull market territory. If things continue, thats where we will be. Measure of risk sentiment. I wonder if you will expend on where this leads for the fed. We need to wait for the data. Interesting to see weve seen risk assets reacting quickly, yet we havent seen expectations shifting that much. The markets seem to think there is a need for cuts. Ive got a chart that illustrates that. Jeremy thats true. The need hasnt changed. Where the market changes is the probability or prospect of 50 basic point need basis point ease. The market is getting ahead of itself in anticipating or discussing the prospect of 50 basis point cut. If there is a reasonable payroll, that should diminish that probability of a more aggressive move from the fed. Markets are very much on march a few minutes from the reserve. As we know, the white house will keep the thumbscrews on mr. Powell, pressuring him to try to move the fed, move the dial towards the more constructive risk oriented buyers. Anna that dollar move is a big move, of. 5 on the dollar index. You think that gets unwound or just not sustained . Jeremy indeed. I think we have to watch the data. Today, we may get a weakening trend. If thats the case, thats the third retreat well see. We havent seen that since mid2017. That underlines the deceleration in certain parts of the u. S. Economy. That could take impetus out of the dollar. Anna thank you. Stay with us. With us on the European Market open. Up next, we bring you the stocks on the move, including Deutsche Bank. 20,000 jobs cut worldwide. Well get the latest. This is bloomberg. Anna welcome back to the european open, 10 minutes into your trading day. Equity markets extending the rally this morning. We saw a strong rally in the asian session, given events at the g20. That has been picked up and then some. The stoxx 600 extending gains by 1. 3 on the stoxx 600. Lets get your specific stories. Dani burger has those for you. Dani there is a lot of macro moving stocks today. I couldnt get away with not doing tech. 6 ,r shares are up almost the highest price into months. Thats what is moving stocks from the cooling of u. S. China trade tensions. The disruption of the tech sector not looking as bad, with huawei allowing to work with some u. S. Companies. Atlantia moving to the downside. They got a preliminary step from the Italian Government of revoking motorway concessions. This comes last are less august. Deutsche bank shows rallying. We have been talking about this, slashing 20 jobs 20,000 jobs at the firm. Optimistic certainly on some of the changes made there. Anna thank you very much. Interesting to see that. Oil is surging to a fiveweek high after saudi arabia and russia signaled their support of output cuts. Those messages coming from the sidelines at the g20. Opec plus Oil Ministers gather in vienna for a series of meetings today and tomorrow to discuss production policy. The Energy Minister waiting on production cuts weight in on production cuts. Im for an extension. I think thats needed for the current condition of the market. A ratherxpecting easier meeting, and hopefully you see the numbers. My expectation is also to be higher than 100 . Anna lets get to manus cranny, covering the latest on the opec plus meetings. Good morning. Has anything been agreed so far . Manus there was an edict had a down at the g20 handed down, which was go off and see if we rolled off six months over nine months. The language on the streets of vienna and hotels around us, stronger certainty and longer term horizon. Thats from the secretary general. Who you just heard from, the mr. Where i live, good luck to him a minister from where i live, good luck to him. Up 3 on wti. How much of that is g20 relief and how much of that is this preemptive strike that putin launched into this opec plus meeting before hand . It will wrangle with many that this is a mess which was sent down. What this does is allow us to come back in december. It gives opec plus flexibility to look at the situation then. Anna interesting to see the supply and demand stories britt large over oil prices. Writ large over the oil prices. Youve been speaking to iranians a little bit. What do they have to say . Theres a clear message coming from iran. They are under huge pressure. We all reported sanctions the other day. They dont want to blow up the deal here. They want to support it. They said six to nine months. Its more about style and substance in how we get to the end of the journey. Have a listen. Our position is very bullish. I have no difficulty with extension of cut or more cut. Is my problem liberalization. Manus how does iran react . You can be sure there will be call today. Friendly fire. Theyre going to ask for a political statement of unity. Theyre talking with how russia handled the unilateral decisions handed down. I read needs to show they have showrt iran needs to they have support beyond american borders. Exportingand theyre 300,000. How much are the chinese buying . How much slippage is there in that marketplace . What will iran do . What will they go to to wrangle the president of the United States of america, who doesnt seem to care very much about protecting the streets of her mood her moves. Anna good question. Thank you very much, bloomberg anchor, dealing with the sunshine in vienna, keeping across the oil story. Jeremy still with us. It seems as if weve got demand and supply stories both pushing Oil Prices Higher this morning. Is this going to result in some inflation . This is what Central Banks are looking for. Jeremy if we see prices remaining elevated and higher, that would provide construct. Many Central Banks have been bemoaning lack of inflationary pressure. Weve seen most targets undershot over the course of the last two to three years. We see prices holding up. I think that will provide impetus. Whether it will create an inflationary bubble i think is probably a different point. All we arent seeing the dynamics providing broader inflationary contract. It is an interesting dynamic. One would suspect the cuts will be rolled over another six months. Thats been the view of our analysts. It is the case the oil price is going to remain underpinned, particularly if we can see the demand dynamic prove more constructive. Cuts,re going to see rate that will provide some stimulus. Anna there are fx stories to play around. Look at canada, norway. Do any of those appeal . We havethey do, and seen gains in terms of oil related dynamics. There has been. How much further can those trends ago . In the context of norway and canada, it comes back to Interest Rates rather than assuming the Rising Oil Price will have an impact on the Canadian Dollar or norwegian krone. Higher,seen it ticking but it is nowhere near extremes of 2015 or 2016. Its relevant, but more about interplay between the dynamics and specific markets and Interest Rates and expectations relative to the u. S. Anna on the inflation story, how did oil how is oil regarded . That this move will put on inflation . When you look at expectations, they did seem to tick upwards, the same time we saw oil rise on geopolitics and before we got talks of reduction cuts extended . Jeremy when we do see seismic shocks and a step change adjustment in terms of a particular price component, they try to look through those immediate inflationary consequent is an look at the disc consequences and look consequences and look at the these are erratic items. As long as it doesnt have a broader impact, the central bank can look through them. It is interesting if we can induce an uptick, i think its been fascinating to look at the dynamic on the euro side, where weve seen a capitulation in the last month down to 1. 1 in terms of the fiveyear, and rebounding. Oil prices already contingent part with that. That will probably take or ease the burden on the ecb. Anna quite amazing. The oil price matters as much as it does. Jeremy, thank you very much. Jeremy stays with us. Lets look at the sector picture. Fascinating. This is the sector picture for you. No sector in europe in negative territory. Utilities is the worst performer. To the topside, technology very strong because of the way way news out of the ash way way news weiquite way we news huai news. This is bloomberg. Anna welcome back. This is the market open, 22 minutes into the trading day. This is the picture on equity markets. A very strong session coming through in europe, and particularly on the dax. If this performance continues, they will be in bull market otori. Db market territory. In bull market territory. The scrum happens at 4 00 p. M. Today. Wimbledon, arguably the most prestigious tennis grand slam, begins today. Tomorrow, a policy decision from the reserve bank of australia, if cut rates at a three year hiatus is expected to cut again. July 4, u. S. Markets closed for independence day. Tune into the boston pops celebration that evening. Matt miller is on his way to that event. After the fireworks have died down, we get the jobs report for the month of june. Payrolls are expected to rebound. Lots on the data front to reach out for. We have data out of the asia session in terms of manufacturing pmis. Some of that continues in europe. Spanish weaker than anticipated. Jeremy is still with me here onset. I mentioned the spanish number. Manufacturing pmi falling to 47. 9 . Much worse than anticipated. The euro is weak. But thats a strong dollar story, really. Jeremy that is a strong dollar story. Seen the euro take a weaker story. And they have come to some resolution, not only the but theip of europe, difficulty in terms of concluding a leaguer dish leader for the ecb leader for the ecb. Thats a more pertinent and issue pertinent issue. It is the case, the vagueness saying weakness were is causing headwinds and were back under the anna we have had week pmi data weak pmi data, and cratering pmis in terms of perhaps of overthetop title, certainly below 50 on many of them. Onthis telling us new news top of the downward speculation . Jeremy it goes back to the start of the show, trade and trade dynamics. This is the negative trade dynamics. Weve been talking about trade tensions, trade frictions, which have been amplifying. We have seen global economies modifying. Pmiss unsurprising of heading lower. The question is whether we can see a base in form and better backdrop in this second half of the year. That is the dam dynamic. I think it is reflecting what we are seeing the first half of the year thus far. Anna it is in the hands of trump and xi, or is there concern they are not entirely able to control . Jeremy one hopes its not the latter, because if it is, it becomes dynamic and systemic and we are focusing on monetary policy. How much can the policymakers do . There is an issue in terms of the forces unleashed by the interrelationship between the u. S. And china. If we can see stabilization of those relations and the traders, were talking about a coming attracting protracted, double provide resilience that will provide resilience and we wont rely on monetary easing to get it going. Anna thank you for your time. Jeremy stretch, jeremy joins me on radio at 9 00. You can join us there on bloomberg radio. Could slasheutsche 20,000 lenders. This is bloomberg. Anna minutes into the trading day, here on your here are your trade lines. Xi jinping and donald trump restart trade talks. Bond traders backing a fed cut. How long can the relief rally last . Deep cuts at Deutsche Bank. Jobs as aslash 20,000 Restructuring Plan. Shares gained 3 . European leaders pull another allnighter in the search for the next commission president. Is the momentum with dutch socialist france timmermans . We will get the latest from brussels shortly. Good morning. Welcome to the european open. Im anna edwards in london. Lets reflect on what weve seen from hong kong for a moment. More on this from the ground shortly. Here, we have protesters gathering. Thousands of protesters on the streets. Weve seen some making attempts, using an iron cart, trying to get into the Legislative Council, some of them successful in breaking a hole in the glass. Its a Public Holiday, no trading in hong kong, a day that marks the handover from the british colony to the chinese. 30 minutes into the trading day, well be back to get an update. The big picture is risk on, 546 stocks on the stoxx 600 go upwards in response from the g20. The truce on the trade talks, the agreement to restart the talks, and the surprise around way way, he was ticked huawei , that we have yet to see the details. Companies fearful of the long arm of u. S. Foreign policy. Some of the tech stocks are moving higher. Ims International Moving to the upside. That is the story. Simeon moves higher. On the downside, and ex dividend. Atlantia, we heard about that story, down 2. 7 a little while ago. Weaker. Lufthansa we have seen a downgrade. We saw one of the brokers turning negative on those stocks. Lets get a bloomberg first word news update with olivia hows. Olivia the u. S. And china agreed a traders and said they will revive negotiations. This comes after negotiations at the g20. President trump said he will scale back restrictions on huawei. He said they are running the trade war and they should hold off on tariffs. As the president continuing talks, which had been interrupted for a while, its a very big deal. I think that the banner headline for this and i think everybody is going to be pleased. There is no promises, no deal made, no timetable. I want to emphasize that. Olivia President Trump has become the first sitting u. S. Leader to step foot in you north korea. He met kim jongun at the hester lee planned meeting hastily planned meeting. He said it was a great honor, inviting kim to the white house. Opec and allies are moving to extend supply cuts in the First Quarter of 2020 as they said grapple with shale output and out. Oil jumps to a fivemonth high. We heard from irans oil minister ahead of the meeting. Alive, wants to be should decide to receive the instruction from outside of it. Olivia fresh protests in hong kong as police clash with demonstrators. They said they would break into the legislature. They are marking the return to china in 1997. It raises new questions over stewardship of the financial hub. Global news, 24 hours a day on air and at tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. Anna . Anna thanks very much, olivia. Leaders have been meeting through the night to decide who to nominate as head of the commission. Bele leaders seem to gravitating to the dutch later, there has been some on the tpp. Maria tadeo join just from brussels. Joins us from brussels. Theres been a night of internal divisions. Where are we at now, as they are all exhausted and blearyeyed . Maria good morning. Weve been here for hours and nothing has changed. Fred system are meant is the front runner. Hes got the backing of Angela Merkel and emmanuel macron. Those are the two biggest countries that should lead to an agreement. The key is the division, the opposition to elect a social democrat to lead the European Commission. Its interesting theres been this resolve against Angela Merkel from this political group. They are able to get everyone in line and a compromise. Weve seen real world defines. Still hours to come. It could change from now until lunchtime, the timing were looking at. No whitesmoke. Zimmerman the front runner. Its unclear if he could seal the deal, or if they will improve approve his nomination. Anna indeed. Some prefer merkels grouping. Some with a similar viewpoint in the epp. What are the implications . If we do see timmerman, what are the implications for the ecb if we get that kind of confirmation . Maria were being told this is your. Nothing is a great until it is agreed europe. Nothing is agreed until it is agreed. Market have repercussions. Were now hearing nothing will come until september. Theres a real risk for the germans walking out and get nothing. No European Commission or central bank. If you get france and the European Commission, the french could be in frankfurt. That is risk for Angela Merkel, who goodly negotiations emptyhanded. Anna thanks very much. Great graphic. Maria tadeo on the ground for us in brussels, waiting for the news flow, waiting for those leaders to decide on some of these appointments. They have to do that today. Deutsche bank caught a break last week with the fred fed stress test. The bank is back in the spotlight with plans to cut 20,000 jobs, more than a fifth of the global workforce, and they may exit the equity business altogether. Joining us is steven arons. Great to have you with us. What can you tell us about these major changes . Another sector of gloomy headlines for Deutsche Bank. Steven thats right. I think the most important take away is they are really serious about the christians coming in last year and presenting a Restructuring Plan the didnt deliver results. They need something bigger and stronger. He is preparing this, more than a fifth of the workforce, if there really is the plan he will present. It will be the biggest of the bank in many years, decades even. And we will see if that is enough to convince investors. Anna why is this happening now . Weve had ceo after ceo trying to get a handle on what is happening at Deutsche Bank and trying to make it more competitive, globally. Why is this happening now . Steven the bank has been struggling many years to achieve a healthy level of profitability. All of the previous ceos that have tried to turn around the bank, basically theyve always tried to nip and tuck on the edges of the bank. They never got down to the Investment Bank, which has been a problem for Deutsche Bank for a long time. This plan now seems to envision much bigger cuts the Investment Bank than the previous ones because the bank has given up on previous ambitions to compete headtohead with the u. S. Investment banks. Anna thank you very much, steven arons in frankfurt with the latest. Up next, we bring you the stocks on the move this morning, a very risk on session. We got news flow out of metro bank. The stock is up after announcing it is looking for a new german. Chairman. This is bloomberg. Anna welcome back to the european open, 43 minutes into the trading session for european equities, and it is strong, reflecting on the news flow from the g20, the truce between xi and trump, the restart in talks, the surprise around huawei pushing stocks higher and pushing Telecoms Operators in europe. Stephen erickson is up. 08 . Lets talk about what is going on closer to home. The u. K. Is closer to stasis according to the latest economic survey. The stagnant Manufacturing Sector is under pressure, with a number of firms reporting approved orders falling to a sevenyear low. Lets speak to anna marshall, joining us for his first interview. Let me talk to you about the results of the report. A modest pickup in services, maybe not all gloom. But Economic Conditions remain stagnant. Is that the summary . Adam that is definitely right. After the brexit deadlines, a little bit of a pressure valve went off and going back to business as usual. Seeing int were business manufacturing. And in the u. K. , it is along the bottom. We havent seen numbers like this since the end of the financial crisis. That gives us cause for concern. There are unresolved issues if we want to see the economy powering ahead. Anna what about the end of october . Businesses got over the last hurdle. Now they look ahead to a new hurdle at the end of october. Do you get the sense that there are going to be stockpiling once again . They are going to take it as seriously . Or is there fatigue with the entire stockpiling process . Adam theres a huge frustration and fatigue. There is also bitterness and resentment. Thats the amount of money people have to spend to prepare for previous deadlines. We dont see as many businesses running up stocks again. In fact, we see businesses running down stocks in march and the april deadline. But everyone is worried they are asked to prepare for a huge number of different outcomes. That creates costs and uncertainty. As a result, many say to us were going to watch and wait. That means we could be in for quite a roller coaster ride in september and october. Anna so if brexit does happen, some will be caught unprepared. Know they aredy prepared for any outcome. We tried it sublime try to supply as much information as we can, and try to push for as much information as they need to prepare for that. But that is not easy for many to do, taking the plunge, even though they may not need to spend it, is difficult for smes. Anna both contenders to be the next Prime Minister will contemplate no deal. It seemed jeremy hunt wouldnt, but now he seems he prepares prefers ideal. He thinks 6 Million Pounds to protect farm and fishing. Would that be enough to protect the impact of no deal . Adam we havent seen from any of the candidates from the conservative leadership or anyone in westminster, a full set of plans that would help British Business and protect the economy in the event of a disorderly exit. The priority for the majority of the firms is to avoid that. To come to some sort of negotiated agreement. Abrupt changes in trading conditions can hurt lots of businesses, lots of communities, and take peoples livelihoods with them. That needs to be realized as the rhetoric wretches keeps ratcheting up. Anna do you think they have been chasing rainbows in terms of brexit outcomes . Do you still see that in the conversations . Maybe a better deal does exists and thats what they are going after. Adam they have to find it quickly if it does exist. We need pragmatism, answers to realworld questions. I have companies losing business, putting off investments, moving jobs elsewhere. That is right now. Were seeing impacts in the Quarterly Survey and other measures of sentiment and confidence. Unless steps are taken quickly to restore Business Confidence and give people a route map for what is going forward, along with support required, i think were going to see a Holding Pattern for so many. And that is damaging. Anna have these contenders been engaging with businesses, talking to cbi . You can speak for the bcc. Have they been talking about what they want to see . Adam both camps are engaging with us. If we have messages for them, which we have repeated over and the again, recommit to Infrastructure Projects the u. K. Needs. Trade and strategy seriously. And third, people. Businesses need people to succeed. Sometimes they cant get them. Anna thanks very much. Really good to have you with us. Lets get back to our top stock stories. Dani burger has the movers. There are so many to talk about. Which heavy picked . Dani there really are a lot. I picked continental. Starting with the trade story, any of these names moving to the upside, especially auto stocks, down there moving higher. Now because these are mostly moving higher, dax sent to set to enter a bull market. Arcelormittal l also a moving company. The assets cable are 740 million euros. This is a requirement for part of an acquisition theyve done, still a sizable chunk from that sale. Finally, metro bank, from up report from the times. They are interviewing new candidates for chairman, possibly replacing the current chairman. Shares have been under pressure, falling almost 70 this year. Regulators investigated them over mispricing of assets. A new chairman possibly in the works. Shares up nearly 2 . Anna thank you very much. Dems up fresh next, fresh demonstrations. Oppositionarching in to the china backed government. To some extent, successfully managing to break the glass outside the legislature, the Legislative Council. Well have more on the streets on hong kong in a moment. This is bloomberg. Anna welcome back to the european open, to a three minutes into the trading day. We are up just shy of 1 on the stoxx 600. The dax to the four, getting the best of the gains. Auto parts one of the bestperforming sectors. The miners and joints doing pretty well. Could the dax be in bull market territory by close . Well wait for confirmation. Lets get back to hong kong. Protests in hong kong have resumed, demonstrators smashing glass and breaking down the door to the legislature. Today marks the anniversary of the return to chinese rule and the start of carrie lams third year in office. Sophie kamaruddin is on the ground. I understand you are near to these protests. Paint a picture. Were keeping track of two sets of protesters, one behind me and to the east. They have kicked off their prodemocracy march, with tens of thousands, some appeals being made to raise the nation for democratic lawmakers to have Campaign Funding for the elections to be held in november. That march was intended to end deliverere they were to demand and the resignation of the chief executive carrie lam, signifying how this has morphed the on the withdrawal of extradition. We have learned the march is to end its road in central, given the developments behind me. Just about 50 minutes decimeters, we can ask meters, we can expect the march to be passing en route, and where march began, three kilometers to the east. And now here, we can hear intermittent chance, see coordinated action to supplies. An earlier, as you noted, a Smaller Group of protesters succeeded in breaking the glass doors of the council building, using a metal cart, despite efforts by a democratic lawmaker to prevent them from doing so. When understand that group is standing off with police. They have reportedly donned gas max and loaded rubber bullets, according to people. This is played out ins there were clashes with police, who used pepper spy to push back protesters pepper spray to push back protesters. A memorable Anniversary Event for hong kong, marking 22 years since the handover of british rule to china. Anna thanks very much, Sophie Kamaruddin with the latest. She said she will be more open. Well watch the developments on the streets. Time to bring your market check. Atufacturing pmi, coming in 45. 4. The european Manufacturing Sector showing weak signs once again. Spanish data came in earlier, below estimates. Does it mean were seeing bad performance in equity markets. They are in the wake of the g20 developments. Futures point higher. The euro is weaker. The dollar is stronger, as a result of the move from the g20. Oil prices go higher on that, also the supply story. This is bloomberg. Xfinity mobile is a Wireless Network designed to save you money. Whether you use your phone to get fit or to find the perfect gift, youll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. So you save hundreds of dollars a year on your wireless bill. Xfinity mobile has the best network. Best devices. Best value. Simple. Easy. Awesome. Click, call or visit a store today. Francine hitting cause. President trump and xi. Crude climbs. Russia looks at a send out for 2020 as demand falters. Deutsche bank could be set to thousands of as jobs. Welcome to bloomberg surveillance. I am Francine Lacqua here in london. These are your markets