High and ard a record n extension from asian data adds to the tail wind. Pening its economy after devastation caused by the look at us, rome favorable borrowing conditions. Welcome to the show. E have breaking News Headlines luftanza, 1. 22 billion examining sales over the medium term. Company in serious rebirth. Guidance from ny lufthansa, good morning. I dont know how any company can give you serious forward the amount of uncertainty they have, let alone the airlines have been battered due to the pandemic, overcoming the and able to link that 9 billion euro bailout from the government. Look at the markets this morning, another risk on day, upside this to the morning, up 1 . As well higher the market sk, doesnt think a major impediment at the moment. 2020. Ost oversold manus in the Risk Appetite clearly currency pair, good isk confirms another green day for stocks. U. S. 10yearyearold ticking a higher and brent above 40 a we havent seen this ussia and saudi left the meeting in vienna. Extending theg at deeper cuts, but the meeting to be confirmed, theyre putting this one down to the wire, manus. Ets get to the latest to our top story, that is here in the United States, protests over the unarmed black man george floyd while in police ustody are considering for an eighth consecutive night despite curfews in cities across the country including new york. Pentagon says 1,600 troops have been moved to the area, but , d. C. Defense officials earlier distanced themselves from resident trumps warning that he could use active duty military forces to clamp down on protests. Off, we want to begin in d. C. With john, another night, thank you so much for us, john. Its late where you are. What has been the reaction to regarding the protests . Mixed. Well, its been is attempt to strike this dramatic aggressive pose seems to be flagging. His appearance before the in washington yesterday which was preceded by demonstrators being the police and by soldiers, thats come under sharp criticism from religious leaders, not just the episcopal bishop who is responsible for church, and from the catholic archbishop because went to a shrine oday to make an appearance, a Roman Catholic shrine here in washington. Not only that, though, thats is a ing, washington pretty liberal city, but pat the teleevangelist whose viewers are trump critical ofwas very he president s response to the protest and his photoop in church, churches and not only that, i think as mentioned, his defense ecretary, mark esper pleaded ignorance because he was at the church and he said he didnt know why he was there. Going to they were inspect the damage. A good first day drama on moment of monday. About joe biden, where is the democratic voice, is he have any traction, anyone paying attention to bidens response . Certainly, yes. Most high profile appearance of the campaign tuesday, rather in philadelphia. Now, did it exceed expectations, not, but it certainly didnt it sort of disappoint. He basically said that these preceded blems long donald trump and he said i cant 0 days, in my first 10 long s going to take a time to have this healing take place. Beyond that, his campaign has upsurge in donations and since the protest his new criticism of president stance. So he has come out of this, at least initially looking pretty good. Ow if the protests continue, not nearly as violent over tonight as they have been, but have to seee, well what happens. Whats the situation like where you are in d. C. . I was walking through the streets of new york, i saw ots of glass on the floor, i saw windows completed busted in before shops were opening up in he morning and shops were completely boarded up, if they werent, construction workers ere out there putting up fourbyfours. Where does the country go if here after what weve been six days orthe past so . Ohn well, again, it depends how this unfolds. It may if there is more it seems that mayors bring the rs cannot violence under control, people to take a second look rejection of ps of his and demand strategy suppression of the and of the protests themselves. Where i am in washington, i have little, i live in a residential area. But downtown, a lot of have been vandalized and there has been arson in new used to live, there a great deal of mayhem and there was tonight, a much smaller scale than last night. Safe, john harney talking to us. Well talk to our reporters across the u. S. To speed with your first alert news, President Trump says the Republican Party to seek a new city for its national convention. Its been planned for charlotte, north carolina, but the president wants it to be moved restrictions. Irus thats been put in place by the states governor. Didnt ident definitively say the g. O. P. Was and ng out of charlotte didnt say which other cities were under consideration. Angela ny, chancellor 100el delays plans to spend euros, they couldnt reach a deal. They reconvene today. Latest on rounds of bloomberg has a massiveat the e. U. , intervention Boris Johnson who to the e. U. Ak leaders later this month. Told the bloco be taxes are already high and they wont on the the burden french people. It comes as countries grappling pay for trillions in spending to protect jobs. Hours a day on pic by on quick bloomberg, journalists in 120 around the world. Ann marie. Coming up, the promise to troops. Large number of more on that next. This is bloomberg. Mark this is bloomberg daybreak im manus in dubai. Recovery from c the coronavirus pandemic and businesses continue to reopen around the world. Gauges show economies stabilizing following despitenavirus shutdown a slew of risks on the horizon. U. S. China relations, havoc on streets of the United States of america eventually victories. G hard won you toph, great to have with us. One thing that im exploring is i t equity markets and emphasize the word equity literally suffering from selective hearing and they only see what they want to see narrativehe reopening and none of the political angst there is around the world. Do you think were suffering selective hearing, gone a red, good shade of morning, selective hearing . Hristoph good morning, so the markets response to the economic policies is very strong and selective, strong because the equity markets, the nasdaq learning from the i ket section foreign view, would say the first winners are the companies, most of them are listed within the why the d this is nasdaq is so strong as i yesterday, minus 7 outperforming the european example, with the share to day of minus 17. As you know, the european arkets, so Many Companies and hats why the european markets are so much with u. S. Markets. Different markets which is theme first, competitors and the rest of theorms the on the planet. One of ourhristophe, writers said its 10 weeks old, ts already taken as historys most aided. We are seeing as of last tuesday, short positions are starting to build. Were seeing the biggest build in five years. Do you think that investors are to take on some of these concerns and at least give little bit of a hed hedge. Hristophe they are surprised by the strong reaction in the weekly markets as we were two minutes ago. And sometimes people dont are so nd why markets strong despite rising risks around us. Here takes different shape. We have, for example, predictions, in the u. S. Putting the Trump Administration since a few years, for example, could be replaced by tax hikes, Corporate Tax hikes case of for example, next ats waiting for the u. S. Election. And china, back just those measures. Is a e economic recovery soft wand. E dont ask this shape, we expect a huge shape. Ecause we have the contraction very tarm contraction in just take arter and then as we quarters, two years to come back and people dont understand, investors dont understand why strong despite all of these risks we were Political Risk and risk. Itical manus and you outlined a very risk, the consumer. This, 20 words, you had Million People unemployed, the management, two to six illionpeople to go in management. The explosion in savings rate, full lockdown, they paid off card. Credit you say this remains, this isnt issue, is it, this is potentially a global issue . Christophe its a global issue likely. Aid people get money once, they a very strong stimulus with the fiscal lag. And dont money orget that for each draft of contraction in the gdp, the uts, hard banks and both combined injected into economies 1. 5 around. The supply chain was and t was stuck because of the lockdown, people created cash. The idea is what people view sitting or it for reopention on the day we economies. People expect a boost in consumption in the months to come, on the outside we are a little bit more cautious that, yes, people ould spend this money by consumption and economic recovery. Time. Ld take this is the ability is improving progressively. Annmarie were going to leave staying with us. Well look at what is coming up well, the annual generally meeting later today, investors proposed pay he about 250 million. Hong kongs annual vigil 1989 tiananmenhe anniversary, thats irtual, the move could lead to more protests. Manus the official projections inflation setting the scene for more policy actions. Is widely expected to boost its stimulus package. Friday, we get the payroll report for may. He numbers are expected to be better than aprils 20. 5 million job losses. The figure is expected to hit the 8 million mark. O thats the data thats coming. Coming up on our show, though, for that e. C. B. Announcing bond buying this the debate get into right here, this is bloomberg. Annmarie this is bloomberg day break. E. C. B. Is expanded its Pandemic Emergency Program by Million Euros at its meeting tomorrow. He sharp downgrade to the Central Banks forecast calls for stimulus. L monetary on the phone is christophe. For sticking around. This is already priced thin. I it is or if its not, should say, what can the e. C. B. Surprise the market tomorrow . Hristophe just to implement and execute the strategy. The e. C. B. Decided stimulative monetary to execute it. Ve under c. B. Has countries the pressure and under the best and you are going in he right direction from the e. C. B. Perspective because they one of the hange strategy andte the the e. C. B. Regarding strategy, the execution of the strategy. This is why markets are starting e. C. B. Measures. Saw a reduction italian read for the onds, for example, and the first positive reaction in the uppon markets that are going markets, theropean est three months, the u. S. Equity markets. Manus how do you differentiate wait for this ou merkelled stimulus program, the didnt get it over line. Iate hat be the different to the other markets or how do differentate . Christo christo in the he i think could have strong eaction country by country according to the Economic Policy some d by the e. C. B. And specifications country by which would have a positive direction of the markets. To play thee prefer excluding s it were the u. K. , im sorry for that. On the euros and play the eurozone of the european markets. Manus there is a whole other regards to es in brexit. Defying the curfew taking to the streets. This is bloomberg. You say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. Annemarie good morning, this is daybreak europe. Thousands defy curfews in the United States. The pentagon says active duty army units, calling it a planning measure. U. S. Futures rise and push the nasdaq toward a record high. Brent is higher, over 40 a and italy reopens its economy after the devastation caused by the coronavirus. Good morning to you in dubai, how are you . Manus a very good morning to you, great to have you with us. Photograph ofe a me getting into a car. Miss chasing ministers. Im going to talk about lufthansa because i think it is a very important story. Sales dropped by 18 . They will go through deep restructuring. In many ways, this is the story, which is, you might get bailed out, you may get money from the government. Youre looking at First Quarter losses more than tripling and the cost cuts will be in two stages. Anybody that believes were going back to some kind of normality in terms of employment in europe or the United States of america is deeply mistaken. That is why this story is so critical. They are going to restructure. They are going to streamline operations. They are looking at this as if theyre going to sell. Of 950 Million Euros 950 thats almost a billion euros. Story, thats why this matters so much. Lets have a look at the markets. The s p 500 is loved by everybody, is charging again charging ahead. For me, the story is about the dollar. Is it taking a breather . Fed said we need to consider negative rates. The longest winning streak since april 20. If the aussie bottom just before the stock market bottom, i decided to do something a little bit different. Billiton and rio flying higher. This is about global recovery. Theyresachs saying lifting their iron or targets. Are you ready for rotation . Lets get the latest on our top story, its about the protest over the death of the unarmed black man, george floyd at the hands of police. They are considering for an eighth consecutive night despite curfews around the country. The pentagon has deployed 1600 troops in the streets of washington, d. C. Have letsals get the latest from the west coast. Ed ludlow joins us from San Francisco. The latest around the country, there are troops now on the streets of d. C. Is everybody taking troops from in newmps offer ed york there very much relying on the police force. New york Governor Cuomo was saying the police were ineffective on monday and seen thebut weve not National Guard deployed in new york. Nationsomes to the capital specifically, the pentagon basically confirmed that active army units were moved into the region around d. C. But they havent actually been deployed yet. The city butround not on the streets of washington dc. Theyre essentially waiting and seeing what is happening. Theres a heavy National Guard presence in washington, d. C. Near the national monument. There has been some light especially in the area immediately outside of the white house like clashes with protesters. Largely, throughout the day, protests in los angeles, San Francisco and other cities in the midwest have been pretty peaceful. But as you say, there are active military personnel standing by. Earlier in the day they tried to put some distance between the president s suggestion that the military would be deployed, and the briefing from the pentagon earlier was that the National Guard was the preference when it comes to handling these protests. Annemarie downtown in new york, i took a walk on madison and fifth. Store after store is boarding up. Are there any signs this will directly impact the economy . Ed i suppose the two good pieces of pieces of good news where that chicago will go ahead with the next phase of reopening its economy on wednesday. There was some question over whether that would happen, but the citys mayor confirmed that it would. New york city still on track to interface one of reopening its economy on june 8. Governor cuomo made a point in the briefing today that it surprising given everything thats going on, but a positive move. The bottom line is, we havent seen any economist knocking down forecasts on the economy, we discussed in the previous days that additional spending on health care, now you have to factor in the cost of damage from these rights. But there are green shoots in the economy. The Housing Market is on its way up with housing rate so low. Diners are recurrent returning to restaurants but theres been no fundamental in wherem economist they see the u. S. Economy going from where it was already impacted by covid19. The latest forecast is that by the end of the year, the economy will have shrunk by 5. 7 relative to 2019. I now the focus is really on getting back to reopening the economy. Will start toews be curtailed. Ed. Marie thanks, lets get to the first word news this morning. The latest round of brexit talks are set in friday without a break through. Bloomberg has learned the eves now pinning its hopes on a dramatic intervention by the Prime Minister. Boris johnson is set to speak with e. U. Leaders later this month. Is likely to be told the block can offer possible concessions if the u. K. Does the same. Rick brent crude has top 40 a barrel for the First Time Since mark. Its a opec and its allies are close to agreeing agreeing to a short extension of output. Ofdi arabia is in favor three months. Tiffany shares took a dive yesterday after womenswear daily reported a deal maybe in certain. They are apparently concerned about the impact of the coronavirus pandemic on the u. S. Economy and growing unrest across america. No comment to bloomberg from either company. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Manus one man who believes in the vshaped recovery after the covid19 pandemic has passed us losses will beb permanent. Take a listen. Recovery, vshaped because thats what the markets are telling us. Every market around the world has gone up by 20 30 or so. Im talking about both emerging and developed markets. I think a vshaped recovery is in store for us, actually. Financial markets are being driven forward by Central Banks. We can see that happening. Theres a divorce from economic reality that we are seeing on the street. There is a racial element happening now in the United States. The market is looking past all of that simply because they know and investors know that the central bank has got their back. Is that ultimately going to blow up in their face . I dont think so. What we are hearing from companies around the world is ,hat once the lockdown is over customers will be coming back in droves. Here in munich, i walked the streets and i see people in lines waiting outside. That means people really want to get back to buying again. Over, i lockdown is think we will see a big recovery. Of course the numbers will look because you have actual shrinkage in the economies around the world. Dont forget, when you start looking at the numbers next year, you will see an incredible increase. Economy is down by 6 . Next year it goes down 1 , that means a 7 increase. So i think it will be more like a vshaped recovery. I hear what youre saying about consumers, but nevertheless, the u. S. Consumer was a massive part of the Global Economic story before before covid19 hit. Will see a clear we structurally higher level of unemployment in the United States. We will get the payroll numbers on friday and that Consumer Spending power is simply not going to be there in the way that it was. While earnings estimates have come down, we still havent fully felt the impact of the unemployment story because most people are still being supported by government programs. When that changes, we will feel the force of that. Do you agree with that, or do you still think the consumer can act as a catalyst to keep investors on site . Youre absolutely right. A lot of people will lose their jobs permanently, not only in the u. S. But in emerging markets around the world. They are finding out they dont need 20 people, they need 15 or 10. So a lot of people will be out of work. They willis is what do, start a new deal program. A massiveere will be program to improve the infrastructure of the u. S. , which will employ a lot of people. I think thats the only answer for the u. S. And also for other countries around the world. They got to use these dollars in this currency there getting from to start massive makework programs, if you will. Theres infrastructure and all kinds of things you can do to put people back to work. I think thats really the only answer. The amazing thing to me is, i just looked at the south african rand, and i couldnt believe it. This april it has appreciated against the u. S. Dollar by 10 . Now, why is that . Words, somethings happened in country that was downgraded by moodys to junk status. Why is that happening . I think its because people see a vshaped recovery in these markets. Annemarie if we extrapolate that to emerging markets as well as develop arc its, you mentioned a new deal type program, and we see something similar across the board. So many rate cuts are coming from emerging markets, Central Banks, and stimulus at the same time are seeing that developing as well. How do you cherry pick the opportunities where thats going to pay off and where its going to come back and bite you . Thats a good question. Thats why we are emphasizing companies with strong balance sheets. A number of companies will not be around next year. They will have gone bankrupt. So we have to look at the survivors. And then we have to look to those companies that are going to benefit from these huge Infrastructure Spending we see coming down the road. Mobius,hat was mark talking about his expectations for the vshaped recovery, extolling the virtues of the rebound in the rand. Reopens in the Prime Minister urges a National Review before his government lifts restrictions on domestic travel. We will discuss. This is bloomberg. Manus this is daybreak europe. The italian Prime Minister marks italys national day with an appeal to citizens to Work Together to revive the country as his government prepares to lift restrictions on domestic travel. Meanwhile the central bank skewed ss asset person, underscoring institutions in the face of the coronavirus outbreak. Joining us is our guest. Thanks for joining us. We have a really important week for italy as they begin to reopen. As you can see, the ecb has really stepped into support italy on the monetary side. We know we will have this relief fund on the fiscal side. What does italy do with this money . Right now its going to be focused on trying to rebuild its economy. It was already stagnant before the epidemic broke out. To contractected between 10 and 12 this year. Italy is really focused on trying to revamp its Tourism Industry and its manufacturing sector. You, youod morning to also note the unemployment rate, but you also focus on youth unemployment at 33 . Reignitinges to italy, where should the focus be to deliver these funds, these loans, these grants . Should it be on that use side or to the more structurally challenged part, the middleaged . Youth unemployment has been the big issue for several years. As result of various labor reforms, they have contracts that have suffered significantly over the past few years. By revamping sectors including education, tourism to give a boost to use and different places in the economy. Annemarie you noted that recent poll shows 67 of respondents feel that they feel disadvantage being part of the e. U. , even the bear about to get these relief funds, this always becomes a big topic when we go into elections in italy. Do you think that given the pressure on the economy we could see even more euro skepticism when it comes to italian politics . Livia absolutely. What we see is populism growing at the moment. Over the past year, the right wing groups have increased in the polls and the centerleft coalition government, their approval rate has decreased. What we see is that they are likely to gain momentum. Italy will have a difficult time addressing the wealth inequality issues in the country. Manus you also make the point howt the disappointment in germany treated your nation at the start. I would say to you that that was a global, every country for themselves. Ofshowed the true nature every man, woman, and child of the human race. I dont think it was just germany. But you make that point and you say that had delivered a searing blow to the allegiance between italy and germany. Livia absolutely. You have to keep in mind that taken in vast numbers of migrants, and the pandemic came. The Immediate Reaction was to erect borders, but some support was coming from china instead of germany. There was a sense of disappointment in the e. U. s ability to come in and help italy, which was one of the first countries that was hit by the pandemic. Annemarie italy recent recently promised to subsidize the purchase of new bicycles for citydwellers. What will be the reaction in germany to using funds for things like this . Livia i think the e. U. Package is leaning toward trying to create an agenda. Giveeal has said it will investments but they need to be tied to certain areas of reform. They would be able to get some sort of funding for it. Im sure if they are italian bicycles, they will be very stylish. Well done, thank you very much for joining us. Waitingp on the show, for the boats to charge and. Capitalize, one the best bet on equity markets is growth versus value. This is bloomberg. Manus this is daybreak europe. Aregreat debate, investors waiting patiently for value from Growth Stocks to become completely bullish on equity markets. But there are signs that a sustainable recovery is on the horizon. As the markets rebound from march lows, some emerge. Faring better than large caps. Basis, value is outperforming growth. Are you on board, are you part of this great rotation, or do you want to wait . Inistophe we are on board the since, as i said a halfhour europe could close the gap or reduce underperformance. By doing so, if we are correct, that willalue stocks experience a rebound in prices. But its a tactical view in the long run. It seems to make sense to be ,nvested in Growth Stocks especially with innovative companies. Technically speaking and strategically speaking, we have two different pictures. Thank you so much for joining us this morning. That does it for us. Europe european open is up next. And tune into Bloomberg Radio on your mobile device. Before regard break, look at these pictures of los angeles. There have been a number of curfews around the country, largely there have been a lot of peaceful protest, but weve seen people break those curfews to protest. These are live pictures right now in los angeles. Anna good morning. Welcome to Bloomberg Markets the european open. Today, markets stay focused hard on the positives from unrest in america to Brexit Impact and the stimulus delay here in germany. Tus