Story. It has come an awful long way awfully quickly. Still do not know how this saga ends. Coming up later in the hour, we will be doing more on wirecard. We will also be covering what is happening in europe in terms of the political story as well. We are going to be talking to brian chesky, airbnb cofounder and ceo. We will get more on the reopening and how that is affecting his business. Looking forward to hearing from him. Stocks continue to climb. Lets talk about that. Alix yes. As we reopen, the question becomes, which country did it right . Which country is going to get the biggest boost if we get a vshaped recovery . Is it going to be the u. S. Or europe . Over the last month, the dollar in the u. S. Has been outperforming. But now what . Us, our guest who downgraded the u. S. And a good in the euro zone because of the covid19 response. Walk me through the thesis. Thank you very much. Very good to be with you. The thing we are trying to the last here is for decade, investors have focused on sectors on a global basis. What we are moving into is a new regime that will be much more focused on probably regional responses, both in terms of policy responses economically but also health care responses. That as you say, the differential response in terms of the health care response, we can see it in the numbers. The week on week changes in america starting to go back up again. And the eurozone numbers starting to come down. There is a risk at the second wave. At the moment in the developed economies, the u. S. Is most at risk. That is why we downgraded the u. S. Compared to the euro zone. One reason at least. Guy over the last few years, i heard people tell me it is time to get out of the United States and focus on europe. I am hearing it again now from you. Why is this time different . Ian i am not sure it is going to be different on a structural basis, guy. We have been overweight the last 3. 5 years. Now you are looking at valuation extremes in terms of the differential. I think we are looking at extremes also for areas like the Technology Sector that is at the heart of the u. S. Market, and we are worried that if we start to see any of those earnings disappoint at a more fundamental covid not just the gory, and see bond yields up, these can undermine tech. That is one factor. The other sector, the other area is the furloughing of workers in the euro zone gives much greater opportunity to get workers back into the workplace much faster than perhaps the level of dislocation that there might have been in the United States through not keeping workers so attached to their companies. These are the kinds of differentiating factors we are focusing on here. Alix do you need a vshaped recovery to do that . Ian no. In fact, we would argue that you do not need a vshaped and we very much doubt you will get a vshaped recovery. It may look like a vshaped initially, but then you start to see this is a permanent loss of income. When you look at that permanent loss of income that is implied isthe oecd forecast, which similar to ours in the later years, you are nowhere near to making up the loss of income and earnings capability. That is what you were previously anticipating. The higher valuation areas of the market start to get challenged when they see this longerterm earnings disappointment coming through in a bigger way. So again, it is that valuation differential that starts to play in favor of the euro zone relative to the u. S. Fed is doing everything it can at the moment and more. The ecb is doing a lot, but it is behind the fed. Why would i buy the euro zone when the fed is providing all the liquidity . Does that liquidity bleed out . Is there an argument for some of it staying in the United States, the bulk of it staying in the United States . Ian i think that is true, but the big change that is taking place here in terms of regime is that we are no longer just talking about Monetary Policy. We are talking about loose money and loose fiscal. The big delta here is not so much that the fed has stepped in once again. We have seen that movie before. We know how it plays out. This time, the thing that is different is the policy. You would not have hardly imagined they would have been willing to do the level of fiscal expansion they are talking about of 13 fiscal expansion. That is immense. It is that delta we are looking at here as well. It is the shift to fiscal activism in the euro zone that we see as the big changing factor here that is also helping us move this eurozone story overweight relative to the u. S. Alix sorry for the noise, by the way. She was riding her scooter. [laughter] alix working from home, man. Working but still from home. Ian we have all been there. Alix i know guy has been, too. Goldman sachs yesterday talked about u. S. Politics. How does that play into your thesis when you still have brexit and there is still Political Uncertainty in europe . Ian we still have Political Uncertainty here in the u. K. And eurozone more generally. That is still being a relatively high level over this period. Aboutk, again, thinking the change in the markets, the change in perception. The change in perception around the risks around what corporate profits might look like and what the tech sector might look like in a Biden Administration rather than a trump administration, these are the kinds of things that we think take the shine off a very fully priced u. S. Market. Remember, you are looking at the u. S. Market that is still on Something Like 25 times trading earnings, almost 30 times cyclically adjusted earnings. Very different from where you youin the euro zone where are still around or below your 10 year averages on valuation indicators. Guy we are going to talk about that a little bit more and in a little more detail in a moment. Ian, you like european banks. Again, people have rotated to european banks on a eurozone recovery. And again, it has never happened. European banks trade on such extreme valuations, and you have to question kind of why this time will be different again. It, but it is maybe for a reason that i appreciate they are cheap i appreciate they are cheap, but maybe they are cheap for a reason. Ian we have been hawkish on the banks for two years. This is a big shift for us to get more positive. If you take the view that you are seeing some backstopping of credit, remember that the large element of that credit market in the Investment Grade is banking debt. You are seeing a direct support coming through, and we would expect the ecb to do that in the same way the fed is doing to some extent. Also, you are looking at a situation where the growth of money supply, there is some nice things for clients in money growth and looking over the change in the banking sectors performance in terms of equity market performance, not necessarily economy performance. It tends to correlate very highly with that. We are looking for those kinds of factors. Again, some of that liquidity to perhaps spill over to this sector, which is definitely unloved at the current time. Alix to wrap that up, Andrew Bailey had an opinion article on bloomberg today where he talked about looking to pervak the Balance Sheet to give more ammunition out of centralbank firepower. How does that in form or shape the view of a longerterm return for equities. Equities . Ian [laughter] i would not like to have a differing view from the bank of england and certainly not mr. Bailey, but i think we have seen how that movie plays out. Tightening in the United States and that ended up being reversed quite dramatically. I think we would need to see this combination of loose money and loose fiscal provide real velocity for the economy before you get into that position. Is evenoment, our sense though it looks as though there is a lot of liquidity and a lot of fiscal firepower, all we are doing is filling in the gap of that dramatic collapse in Economic Activity you are seeing with covid. What i would like to see is loose money and loose Monetary Policy sustained for some time to really get us back to 5 , 6 gdp growth. And at that point, you can start to talk about running down those Balance Sheets more aggressively before you start to raise rates. I think you will need to see much faster growth rates. That is the reason why we are seeing on a 12 month view, and remember this is a 12 month view, that we want to be in more value stocks rather than growth stocks. Guy always a pleasure. Thanks for your time today. We really appreciate it. Trategy we will talk about what is happening in europe in a little more detail. We will be talking to the eiv boss, mr. Hoyer, next. We will get his idea on the recovery, the funding of the recovery, and what is going on in terms of its institution, whether it has the necessary funds to do what is being asked of it. Werner hoyer coming up next. This is bloomberg. London, im guy johnson with alix steel over in new york. This is the european on Bloomberg Markets. The coronavirus pandemic is an enormous challenge for europe but it could be a chance for a new beginning. That ist werner moyl what werner hoyer said. Thank you for your time today. We are trying to figure out exactly when this 750 billion euro program is likely to be finalized and what the details are going to look like. What are your expectations . Share your wish for clarity as soon as possible because i understand there are still differences of opinions between Member States of the european union, and this must be sorted out quickly because we are in a situation which is totally different from 10 years ago. Statenow not an issue of finance, at least not yet. ,t is an issue of companies basically in most cases Healthy Companies which are in trouble because they cannot survive the liquidity problem. Therefore, the money must flow quickly. Therefore, we need to get our act together quickly. We need to know what we are talking about because this Recovery Program is a huge shape anty to opportunity out of a difficult crisis situation by addressing the structural weaknesses of our economies and industries. This must be addressed quickly, but we need some knowledge about the details of the program for the european union. Alix doesnt that just mean you are in some ways picking winners and losers . Investing in green energy versus other areas . Isnt that something that will come out of this when we look back at it . Werner no. Aware thathave to be some areas of the european economies have become clear. One weakness is digitalization, where we are lagging far behind other parts of the world. Singleot have a unified digital market in the european union. Secondly, we are trailing behind the others when it comes to innovation. And roughly one can say 1. 5 of gdp less off of this years rdi over 15 years now. So we are heading into a structural disadvantage with our competitors not much productivity. Finally, sustainability is the name of the game here. Those who dream of returning to the old world of fossil fuel Energy Production are totally on the wrong track. You are being asked to do some heavy lifting here potentially, and i am wondering if your institution, the eib, is set up to be able to do that, to support companies in the way you will be potentially asked to do so. What do you need to make the difference at this point in terms of financing for your operations . Werner of course, we need to know exactly what we are expected to do. It is clear that a big part of the burden of this initiative will be on the shoulders of the eu bank. Because what is necessary in particular are the huge structural challenges in the next few years, is to mobilize as much money from the private sector as possible. So all the money in the world will not suffice in order to address all the problems we have on the table. Iswhen institution like eib very necessary. Countries, companies, institutions, sovereign wealth with are ready to support good diligence at eib and are requesting to be accepted as cofinancier. That is a good way. The other way is to issue bonds for these purposes which we do at 60 to 80 billion euros a year. Is also a way to let the private sector contribute to the policy goals. Alix can you give me some perspective as to how easily the money is flowing out . How much has been dispersed . What is the transmission mechanism . Here in the u. S. , it is very much done through banks. What about where you are . Werner of course, we operate through intermediate banks. And the takeup up of the programs is extremely good. We have fed programs which were oversubscribed by the factor of two or three. From that point of view, it is fine. We are quite happy with it. On the other hand, i walk on main street and go to a shop and there i do not see enough yet. Improve theeed to speed of disbursement and our partner banks are key in this process. Just to kind of think about when you are distributing money where it goes, there remains a key question about where europe spends money and what the most effective policy at this point should be. In the u. S. , there has been a big focus on consumption. I am wondering whether or not longterm objectives that include things like sustainability are the way to go at this point in time and whether or not the european needs shortterm triage to make sure it is capable of withstanding. Do you think trying to do two things at the same time as the right way to go . Werner i think we should not adopt the american way. To putve that we need priority for investment overconsumption. We have neglected that for too long. I understand the Member States are doing a lot to support consumption, Consumer Spending via tax breaks and things like that. That is fine. For us, what is key is we must mobilize the investment motor in europe. Intorequires investment research, technology, digitalization, and the environment, sustainability. I think it is going to be a huge driver of growth in the next years. The amount of money that is needed to reform our economic and industrial set up in Energy Production is enormous. We must have the ambition to be the technological leaders on this. So investing into this might not be very profitable in the very shortterm sense. The benefits will come later. They will come over time. That will be an opportunity to straighten out some weaknesses of our economy. Alix all right. Thank you very much. Sorry. Go ahead. Some people are trying to hide behind the virus when it comes to the climate challenges. No. We must use the situation now as difficult as it is as an opportunity and not just a chance that we may get rid of hiding behind the virus. Alix thanks a lot. Thank you. This is bloomberg. Ritika is time for it is time for the Bloomberg Business flash. Wirecard fighting for survival. 1. 2 billion of its cash on its Balance Sheet probably does not exist. Wirecard has withdrawn its recent financial. A momentous week in the tens of desk in lufthansas history. It is spending to scrap a 10 billion bailout. Emergency talks are set for today. Airbnb was hammered by the travel shut down but now is expecting surging booking due to bent up demand. Pentup demand. I want a little more data. We are still a little early in this crisis for me to feel clear enough about how this will play out, so we are not ruling it out this year, but we are definitely not committing to a timeline right now. Ritika he said there were so many dark hours during the crisis. We will have more of our interview with brian later this hour. His take on how travel will never be the same. That is your Bloomberg Business flash. Guy . Guy thank you very much. We are a few minutes away from the end of trading in europe. We are down. If you look at the sector breakdown, it is positive. Volume, though, really quite light. Details to follow. European close is next. This is bloomberg. [ sigh ] not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Ask about saving up to 1500 on your installation. Guy lets take a look at the scores and see what is happened with the european close. A light volume day today, which is worth bearing in mind when you look at the breakdown. We are negative, but it is worth bearing in mind the light volume story is definitely present. What we have seen is the more cyclical stocks doing better from a sector point of view. That side of the session is gone. We came of age and looking good. We climbed back in we came out of asia not looking good. We climbed back into positive territory. The individual markets, not a great deal of difference between them. We are seeing more idiosyncratic stories being the more interesting elements. We will talk more about that later in the week. You have wirecard. We will get more information on what is happening with wirecard in just a moment. And is the ftse, the cac, the dax all down similar amounts. In terms of the sector breakdown , we have more defensive stock sectors underperforming. Look at the bottom. The food and beverage sector, some of the worst performers, the health care sector. A much more mixed up story today. At the top you have some of the autos and some of the tier one suppliers. It is the tier one suppliers doing better today. The retail sectors are having a positive day, as are the minors despite glencore being investigated. Lets take a look at some of the individual names. We will focus on wirecard. The stock dropped today as dramatic as it has been in percent terms over the last few days. Wirecard down another 41 . In terms of absolute loss, the bulk of the losses last week. Glencore is being investigated over what is happening in the congo. The stock not taking that big of a hit. Down 3 . Carnival down reasonably hard. There has been a deal done in the United States you will not see until september 15. That is not the entire cruise line operating fleet. Carnival down 10 . The big story out of europe continues to be what is happening with wirecard. Before we saw trading take place, the company admitted it does not think a 1. 9 billion at the center of the saga actually exists. This is missing money and on a scale if you would have expected. Lets get the details is what happens next. We are joined by bloombergs benedikt kammel. Walk me through where we are. I was surprised to see the stock given the hard today lack of transparency about what is happening inside the country, and in particular where this 1. 9 billion euros actually is and if it exists. Benedikt that is the question. Does this money exist. We heard the 1. 9 million had gone missing and now we heard rather than going missing, it might not have existed in the first place, which is quite a bit worse. It is interesting to see the reckoning that is happening in the german establishment. Bankers,regulators, politicians asking how could we miss this. Did we look in the wrong direction. How could we not see there was something fundamentally flawed at this company . You talked about the stock decline we have seen. This is a company in a death spiral. We have close to a 50 stock dropped today. The massive implosion last week. It seems difficult for this company to recover from this. Movies cut the rating moodys cut the rating dramatically and has now withdrawn entirely. Whether this company can come back is an open question at this point. Alix that is a good question. Dnt anyone catch this . Herew the fcc regulators would be all over it. I wonder if the same thing is happening in germany . Benedikt is starting to happen and the Financial Times wrote a series of articles about wirecard and questionable accounting practices. Wirecard always pushed back on this and started investigating journalists. Startedan regulators borrowing short trading and so on. Ist they did not properly do look under the hood of wirecard. They went along with what the company was saying and the stocks went up and down with each new revelation, and then the pushback. That clarity where things stood. Now they are coming around regulators saying maybe we did miss the smoking gun, maybe we did miss the clear signals and a lot of egg on the face of the regulators and the company itself. Solvent . His company my understanding under german law, if it is not, that it needs to be wound down. Who will make that call . Benedikt that is a difficult situation for the banks in particular. They want more time to assess the damage on their own Balance Sheet, but this is a difficult balancing act. They cannot draw this out too long because otherwise they are not tricky legal situation they are in a tricky legal situation. It is a very fine line between giving wirecard extra time to assess the damage on their own Balance Sheet, but not enough time, certainly not throwing money after them. Tier question is the Company Still solvent, it looks as if theyve drawn most of their. Redit line at this point if this death spiral continues, this could turn into a company winding down very rapidly. Alix to talk quickly about the contagion. The bank of china said they might have to write off all of the money they wind up lending in their credit line and will not extend the credit line. How indebted is the company . What is the exposure like . How does that play out . Benedikt you will see this ripple through the system. This is a company that lubricates transactions around the world. They have deals with visa and mastercard. That is difficult to unwind. It is difficult enough if youre Company Making stuff and you have to go somewhere else and find that product. This is a company that has become a central part of electronic payment and electronic transactions, and unwinding them will be difficult. In terms of the exposure to banks, we are seeing the tip of the iceberg. You just mentioned the chinese as one partner that has come out with a number. We will probably see more in the next couple of days. Right now there a lot of banks looking for extra time to be able to put a number on it. That is why we do not have a lot of other companies coming out to give us their assessment. We will probably see more in the next couple of days. Guy house displaying in germany . How is this playing in germany . Germany has tried to set itself up as a tech hub. Fintech is seen as an area of strength. How undermining will this saga is there a sense regulators need to fall on their sword . This is a huge missed by premuch everybody concerned. Investors, regulators, everybody has missed what has been going on. Benedikt the head of the german financial regulators often called it a disaster, and he is probably speaking for the company as much as he is for himself at the baker Regulatory Framework of germany. Germany tries to reposition itself as a new fintech hub, and this is a huge blemish on that record. , wirecardk at the dax and the ascendance to the dax, this is an index made up of oldschool companies. Bank,olkswagen, deutsche companies that have been around for decades and centuries. Not many hightech, new, innovative companies. Sap often named as the one big exception. Wirecard was the much needed addition to that breed of company. It is safe to say they struggle to hang on to their listing at this point. It is a damage all around from regulatory point of view, from a pr point of view, from the composition of the dax. There are few winners in this. On, but im pile wondering how valuable the underlying business actually is and if somebody could buy it. Not in the middle of this mess. Fintech is something and is where a lot of people are investing. What are the probabilities . Benedikt a good question. Probably too early to say. He will see other companies picking over the smoldering heap of wirecard in the next couple of weeks, and the company has already said they have hired external advisors to assess the way they go forward. Companymight see is the trying to quickly monetize some of its assets, seeing the company sell assets and getting partners, whatever they can do to keep the ship afloat. There will certainly be companies who want to come into unless people look under the hood and find the company is so terminally flawed there is nothing they want to play with. A lot of the value of the company has to do with the counterpart with visa and mastercard and paypal. If these partners pull out, there is probably much less value in the company than there is today. Alix great analysis. Thank you so much. Benedikt kammel joining us from bloomberg. Lets get a check on what is happening outside the business world. Victory for president at the supreme court. Justice is rejected and industry challenge to the president s . 25 tariff on imported steel tariffs. Some companies have negotiated deals to avoid the tariffs, but they are still in place and much of the world. President trump is urging republicans to oppose a democratic bill on Police Reform. Ledger is expected to come up for a vote this week. The president says the measure would destroy our police. The bills sponsor says the president does not understand it. Senate republicans have their own Police Reform legislation. The Global Economy is pricing of feis turtle the Global Economy is facing a fresh hurdle. Coronavirus keeps businesses on edge. Cases rose by a record for single day yesterday, the biggest flareups took place in the u. S. And brazil. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am ritika gupta. This is bloomberg. Much,hank you very indeed. To bring you the final scores for the ftse 100, a little bit of a pickup as we come through the settlement. Not much. These are the final numbers. European equity markets treading on thin volume and down. 5 . We are expecting come as we watch what is happening new york with the move to phase two, a loosening of the restrictions in the u. K. We are expecting that to be announced tuesday or wednesday. Tonight we will bring you the Daily Briefing from 10 downing street. Well bring that to you on the cable at the top of the hour on Bloomberg Radio on dab in the london area. Jonathan ferro in new york joining me in london. This is bloomberg. Alix life new york, i am alix steel with guy johnson in london. This is the european close on Bloomberg Markets. Unless you are guy going on a camping trip, other people might start to use airbnb. The company has faced about 1 billion worth of cancellations, cut 25 of its workforce, and raised an additional 2 billion. Emily chang spoke to the ceo as to what is ahead for travel. Brian none of us were prepared for a once in a century crisis. It analysts have described as something more akin to world war ii. Likethat happens, it felt it felt like 12 years of success and had all these things in life was great. , you build something in 12 weeks and you lose most of it in four weeks. I cannot describe what that feels like. The captain of a ship and the torpedo just hit the side of the ship. Emily travel came to a standstill. People do not want to travel or they cannot travel legally. It was illegal to rent an airbnb. What was the lowest point for you . The darkest hour . Brian there were so many dark hours. The old quote attributed to winston churchill, if youre going through hell, keep going. The first dark moment was when we had a Million Dollars of cancellations. Emily you also had to cut 25 of the company and you gave an incredibly generous severance package. I could feel the pain in your note to the team. Talk to me about going through that process, cutting 25 of your staff. Brian it was the saddest thing i have done in my life professionally. We were not sure we would have to do layoffs. If we had to face the hard truth that travel we did not know when it was going to return. We knew that when travel return, it would be different. It would never be the same. Emily you do not think travel will ever be the same . What does travel look like . Brian i do not know for sure, but here is what i will say. Travel will be back. But it will look different. Emily what trends are using in europe and asia versus United States . Brian the United States has been strong. We cannotclarify declare recovery anywhere because we do not know where there is pentup demand and temporary or sustainable recovery. We have seen a temporary recovery in the United States. Most of europe we have seen a temporary recovery other than the u. K. The u. K. Is still locked down until july 1. France, germany, italy, spain are seeing strong growth. Latin america has not recovered and asia is starting to recover but not yet recovered. North america and europe are extremely strong. Latin america and asia are a bit behind. Emily how much you think getting back to normal depends on a vaccine, but even then will things be different . Brian travel as we know it is over. You will never see it again. Travel as we knew it from valentines day and before is over. It does not mean travel is gone, but that travel is gone. Nobody knows what it will be because it is up to the industry to invent the way forward. I think Business Travel will be hit or a wild. A lot of people are realizing they can do will be hit for a while. People are realizing they can do meetings on zoom. People will rediscover the outdoors. Most americans have never been to a national park. Most americans do not know they live within 200 miles of national parks. People will travel a lot more outdoors. These are things will happen. The other thing is travel and living will blend together. What joy mean . If you can do your job from home what do i mean . If you can work from home you can work from any home. What you will start to see is not just travel redistribution, but you might see population redistribution. People may start moving to smaller towns and communities. Trends. Interesting to see how much of that unfolds. Emily chang speaking to airbnbs ceo. A fascinating conversation. Travel, as he says, will change. It is already starting to change in europe. The french government has acided it is going to ban series of internal routes for aircraft. If you can take a tgv or train and get somewhere, you will not be able to fly that route. They are going to completely ban these routes, which has more to do with what is happening in the environment. We still do not know what is happening with lufthansa. It needs to be rescued, but you have a big shareholder who is shares heced the wants to say. It will be a big week for european travel. Alix i wonder how that winds up playing out. If there is a 10 billion bailout of lufthansa, the shareholder will get there shares diluted. If the plan does not go through, is it in were step . We have seen Companies Like united and American Airlines issue a huge tranche, but then there is an issue of collateral. Does anyone want to own the planes . That is unclear to me. Guy it is. This is the biggest shareholder in lufthansa. It is reported there was a meeting earlier on today at the meeting deliver no compromise. Olaf scholz is saying the package for lufthansa is balanced. It is interesting what is happening with u. S. Airlines and their ability to raise money whether or not lufthansa could go down that road is something people may have to debate again. Yet,e not seen the yield but i saw last week it was around 11 good does the math that up if lufthansa would go down that road . I do not know. We will talk about later in the week. Alix 40 we finally get consolidation in the European Airline industry . Good stuff. This is bloomberg. Ritika time for the Bloomberg Business flash. A look at some of the biggest business stories in the news. The pandemic is taking its toll on americas homeowners. Mortgage delinquencies climbed the highest level since 2011. The number of borrowers or than morewrote rose by than 8 of all u. S. Mortgages were past due or in foreclosure. Almost one third of u. S. Shale producers are technically insolvent, with oil at 35 per barrel. It highlights the industry strain, even though crude has rebounded from a record low earlier this year. That is the Bloomberg Business flash. Alix thank you very much. We do have a very busy week ahead on the local front as well as the ecofront. We have the Apple Worldwide developer conference. We also have global pmi tomorrow. The imf is releasing their 2020 Economic Growth projections. We have the New York Primary tomorrow. Im interested to see how the political stage plays off after what many are saying was a difficult weekend for president trump. How that gets reflected within polling and the equity market. Sec. Pompeo absolutely. Guy absolutely. A lot going on. The bolton look will not change hearts and minds. This is my date of the week. Pmi is absolutely massive. Manufacturing expected to come through at 45 in the euro zone. Services at 41. That gives you a composite of 43. Those numbers are not good but that is a significant bounce back from the prior numbers. The prior composite, 31. 9. That was terrible data. These are the per luminary data for june. They obviously are a small portion of the eurozone economy, but if the data continues to bounce back, that will be a positive signal. The numbers are not good. They imply contraction. Alix but is it less bad than we thought . That will be the key. That wraps it up for guy and me on Bloomberg Markets the european close. Coming up in the u. S. , balance of power with david westin. Join him on Bloomberg Television and radio. This is bloomberg. David from new york to our tv and radio audiences worldwide, this is balance of power, where the world of politics meets the world of business. We start with the markets. They seem to be caught in betwixt and between. Scarlet fu will explain it. Scarlet u. S. Stocks did open and the red in contrast with gains we saw in futures. We saw the futures contract take a late dive on friday after the cash markets closed. It was not reflected in the underlying index until today. The gap is still 10 points, but according to our producer it is rare to see widespread when there is not an event like the fed. Even with the s p matching a bit of a comeback, the scene is safety. It is on the heels of a rising buyers just states like california. A firm that tracks big cap tech names, these guys are a source of safety and growth. They have the Balance Sheet to get through this period of and there is not a lot
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