, stocks andcovery futures sliding after unexpected uptick in u. S. Jobless claims. Delay to the stimulus plan means one thing for markets. This may get worse. , china to the u. S. To close its consulate in chen u du. Mike pompeo calls the chinese president a true believer into italian totalitarian ideology. Delay, thisuction follows big drops in microsoft earnings despite solid results. We are an hour from cash equity trading. You can look at drops of more than 1 acrosstheboard in european futures. You have got you are got u. S. Teachers that continue to fall after the slump we saw yesterday. Anna we have got numbers from vodafone out this morning. Lets get to that. 21 organic services revenue, this is the bread and butter of what they do. Down, but the estimate was something worse. There was another u. K. Giant, unilever, also yesterday. They are keeping the guidance for Free Cash Flow prespectrum. There have been questions around the ipo tower unit. The european tower unit is on track for an ipo in early 2021. The target unit is targeting a listing in frankfurt where we are looking out for any comments about huawei. We have seen the u. K. Decision recently and see if vodafone will comment on that. The increasing cost of doing business with other providers. Lets say thats talk about the asian session. Human to through the futures and they looked gloomy. You looked through the futures and they looked lonely. 2. 4 . Ng seng weaker down australia down 1. 3 which is also wrestling with the coronavirus as we know. The bloomberg dollar index showing dollar weakness around out of the week. To continue the trajectory of the week, we are dealing with in marketsncerns around the u. S. China tensions, u. S. Jobless numbers, the initial claims numbers. That was extra had a concern and concerns around u. S. Physical sport. Fiscal support. We will go to laura wright for the update. Laura china wants the u. S. To shut its consulate in southwest china. This comes after the u. S. Shuttered chinas consulate in houston, texas. Beijing says it is responsible for the current escalation in tensions and is calling on washington to change his decision. The u. S. Economic recovery is stalling. Initial jobless claims rose for the First Time Since march. Continuing claims dropped slightly. Of data comes as hundreds billions of dollars of federal aid is going to expire. The u. S. Economy could be at risk of a doubledip recession. The u. K. Has announced its biggest Flu Vaccination Program for the winter as it seeks to protect the National Health service from a second wave of coronavirus. They hope to vaccinate 30 million people. Free jabs usually available for over 65 and at risk groups will be available to everyone over 50. 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. This is bloomberg. Anna, matt. Laura in london with your first word news. Ecuador reported a surprise profit in the second quarter. They saw a profit of 46 million compared with the expected loss or anticipated of 250 million. That was fueled by trading gains and tax change designed to support norways oil industry through the pandemic. We are joined by the ceo of ecuador equinor. We all were, or at least to the analysts showed a forecasted loss, but you reported profit thanks to gains in in volatile markets. Not volatile markets. What would you highlight as being successful . Good morning. Arst of all that has been very exceptional and extraordinary quarter for us and in many ways we have to be looking at a most dramatic quarter in the history of the order oil markets. Looking deep down on the liquidity environment. Is this situation with the capacity to utilize this, it has given us a strong trading performance in the quarter. Really good to see that and if you look at upstream it is on the negative side. See positive. Let me ask you about the value of your assets. You have not taken it down based on reassessment of lowering of esteemed oil prices. Others have done that. You have received 80 in 2030. Do you see approaches different and why the why do you take it . I cant comment on what others are doing. What we see in the situation is a lot of uncertainty may be in increasing uncertainty. We see the covid situation could impact the command demand side. We see a potential impact on the supply side that is not being discussed that much. Less Risk Appetite in the industry, it could have a bigger impact than we might see on the demand side. A lot of uncertainty and we are ready for our own analysis and independent analysts, we see scenarios. That have even higher, the same level we have longterm assumptions. And seet in that space no reason to change the assumptions in connection with this quarter. I wonder if you talk more in depth about the demand side because we are worried about the possibility of a doubledip recession in the u. S. Or a stalling of the economy. How do you see demand shaping up . Is, you know, underlying all of this, the covid uncertainties and the potential for lockdowns and continued negative impact on the industrial and demand. To us it is basically a very fragile situation. A lot of uncertainty on the demand side and it creates a unique situation. If you combine with the uncertainty of the supply side, we see record high storage levels have developed. With the time threat coming down significantly, there is less incentive to keep the volumes in stock and we see a lot of volumes that were back because of commodity environments. It is fragile and challenging situation in the markets for quite some time actually. And looking at the supply side and the stories issues, can the market absorb an increase in , set torom opec plus hit the markets next month . This situation, there is a lot of volumes that is prepared to come back into the equation from the supply side. And basically the only thing that can support a balanced Market Going Forward is demand side is picking up and eventually will. But the escape of what that will look like is highly uncertain. It goes back to the global recession. And when the Global Economy and more specifically a demand, what that starts to look like and the transportation sector. That will going to pick up and support the demand side. Very fragile and challenging and a lot of uncertainty ahead of us. It will include a lot of volatility. Uncertaintyis some for shareholders as well. You cut your dividends and halted your by brock buyback program. What kind of situation do you need to see before you are able payback . Hareholder eldar this is no specific individual trigger. This is referred to dividend policy, it is about the financial situation for the company, what it looks like, the outlooks, commodity outlooks and expectation for the future. We will have to look and make an adjustment call. One thing i can say is this quarter is that the guidance for this, it is adjustment we will have to make as long as we are and we willtuation have to make that call when we come to the next quarter. Ask you about the future of the business. You said the company will be so mueller in the future. What you mean will be smaller in the future . What do you mean . Eldar that was a comment i made on the need to become even more efficient. We see companies, we have indicated from some downsizing throughout the organization. We will simply have to continue to improve continuously and it will have an impact on the total workforce. I dont know how much and i have no indications of number of people and our percentages. But it will take us into becoming a tighter company in the second half of this year. It is something we will have to come back to but it is pushing efficiency and also including the impacts from new ways of working, seeing a lot of things we can do differently from the covid situation, working from home and traveling less and so on. That will support a more sufficient Company Going forward. That was the comment i made with efficiency. Anna efficiency in the cost space. Think you your time. The ceo of equinor. We will be back to the equity markets, chinese stocks tanking and u. S. And european futures pointing lower and concerns over escalating chinau. S. Tensions. We will discuss Market Reaction to that with our mliv currency and rates strategist. This is bloomberg. This is bloomberg. Go, it willutes to be way down by the same factors weighing down asian trade. China ordered the u. S. To shut a consulate in a titfortat retaliation. That is concerned of tensions and warnings of recovery in the largest economy could have stalled. Joining us is the market flight currency and rates strategist. What is behind the selling we youreeing in stocks, given focus and appreciation of how risk assets perform . Had the jobless claims, ongoing tensions between the u. S. And china. Is is it is that the latter that is weighing on stocks . It is a bit of both. If you look deeper into it, it is not surprising at all stocks are falling because in the past four weeks alone the s p has racked up gains of 7. 5 in the past four weeks but suggest some profit taking was due and if anything the current tensions giving an excuse to take money off the table especially going into the weekend. There are other reasons why i think the markets are not going faced the onto a particular point. Is the mind thee is no downside to dowler and the gains in u. S. Treasuries are quite mild by historical standards. That taken with the overdue correction in stocks, very interestingly, but i dont think this is a major storm brewing. Mliv i wanted to ask the question of the day. Juliette saly posted on the blog the question, are airlines a broader markets guideline . They have been an economic the weather. We what kind of responses are we hearing . Reasoning would seem so because the people begin to tremble again it is a sign economies are travel again, it is a sign economies are on the rebound. But the reality is quite different. Is more or less very important. But the Airline Industry index. S still down 51 why is the difference so stark . The airlines have suffered massive losses and even in the best of times they are anemic. And it only gets worse. Airlines i dont think are a good guide to the broader markets. Thank you so much. The mliv currency and rates aboutgist talking to us the markets coming up in 41 minutes is the open. Not as bad as 2017. We will get more on the escalating chinau. S. Tensions with state streets ben jones and asked why he doesnt think it is a big risk. This is bloomberg. Anna welcome back to the European Market open. European futures pointing to the downside. It could be weaker by a percent or so at the start of the trading day. A lot of geopolitical tensions to be concerned about. Between the u. S. And china and economy underlying u. S. And what kind of support will be forward coming from washington in terms of the fiscal stimulus. Think one of be i the most interesting battles we will watch over the next week, isnt really maybe it is in u. S. China. Maybe it is democrat, republican in terms of the stimulus bill. Speaking of the former, china is demanding the u. S. Close its consulate. Which the statement comes after forcedrican government china to leave its mission in houston earlier this week. A key u. S. Listening post for developments into past in tibet. Jinping ao called xi true believer in a bankrupt totalitarian ideology. President trump also said the trade deal means much less to him because of what he called chinas role in spreading the coronavirus. His allegation. By benned by a jones of state street. Doesnt that seem like it should be a real concern for investors . I think it is becoming a little bit more of a concern. I can see we are focused on the covid as the primary story and also investors have got quite used to these stats spats between the u. S. And china and they are willing to look through it. Carry on of thing will in the background. What does it really mean for Financial Markets . Will it impact chinese equities . Will it impact u. S. Tech firms in the answer is probably not really. Days like today where you get this spike in news flow and the risk off tone and some outflows from chinese equities when you look at the northbound flow but generally speaking the direction of travel is still pretty positive. The main reason i see that is because investors are not positioned for good news. They are pretty conservatively positioned particularly when it comes to Something Like china. It is not as if there is forced selling in the wake of this negative news. It will be in the background but is it going to be the Main Driving Force and is a going to sort of take the legs out of Risk Appetite . I am not sure it is. Anna i wanted to ask you about this trend of decoupling to start two distinct spheres of influence in the economy. Do think investors are mindful of that . Or do investors think this will be marginal or wont take effect for a long time and so minutes not to think about it . Manage not to think about it . Ben the bifurcation is real. We have seen it with u. S. And china and also european and other western economies with Chinese Technology firms. The 5g situation is it is a prime concern. Investors are aware there is going to be the bifurcation. Does that mean that these equity markets is an index that underperforms and falls as a result . There will be some nuance, there will be some occasions you need to make. In the u. K. Telecoms companies are going to come under pressure because they are going to have to spend a lot more to replace existing technology. There will be some of those impacts. In terms of a macro news story that takes out the legs of equities more broadly, i dont think that is the main story. It is more about the nuance and selectivity as the risk off, risk story risk on story. Very interesting insight. We will keep you with us for more. Benjamin jones stays with us. We will talk about the jobless claims increase since march. This is bloomberg. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Back, this is the european open. We have got 30 minutes to go until the start of cash trading. Futures are down 1 in europe and down in the u. S. On concern of the increased jobless claims and the possibility of a stalling or doubledip economic recession. Lets take a look at what you should be watching. The bank of russia likely to cut Interest Rates after 150 basis points of april and june. Bloomberg economics recommends they will go big with a half point move. The governor holds a News Conference at 1 00 p. M. Watch out for preliminary pmis from the Worlds Largest economy. Showing the u. S. Moved into growth territory with services and manufacturing readings expected to rise above 50 in july and more data from the u. S. With home sales for june. The post virus reopening late in the selling season will restrain the extent of improvement in the housing market. Anna u. S. Jobless claims rose unexpectedly last week for the First Time Since march. This could be a cause in the recovery pause in the recovery. Initial jobless claims rose to 1. 4 million from 1. 3 million when the consensus was for no change. The rollouts of further stimulus efforts have stalled because of lingering differences between Senate Republicans and the white house. The 1 trillion gop plan will not be ready until monday. Lawmakers expected mcconnell to begin releasing a series of bills as soon as thursday. Benjamin jones from state street is still with us. The underlying recovery story, set back by the reemergence or continued emergence of the coronavirus. It is the fight against the coronavirus in the u. S. Which until we get over, manage to get through somehow, it will dominate market sentiment. Ben i think as you mentioned at the top, the Economic Data in the u. S. Is starting to stutter a little bit. We have been looking at a faster moving, regional alternative data released in the u. S. As a result or in the wake of covid. That should have signaled some of these jobless claim numbers would creep higher. If you look at some states, we saw a rolling over in the number of hours worked. It is because of this we started to get fears coronavirus is not under control. There is local lockdowns being put into place and individuals not willing to travel and move around and go about normal business. In europe we have had more success in containing the virus and social distancing seems to be working. Individuals are happier to go to restaurants and visit retail areas and go back to work. It is interesting you have seen the european activity starting to overtake the u. S. That is not the phrase i would have been saying six months or so. I think it will be the thing the u. S. Economies will struggle with. It will be uneven and stuttered recovery from here. Europe looks to be in that are shape. You mentioned it is also to do with the fiscal spending plans. Europe has got is recovery van off the ground. Overis going to be support questions in the u. S. Matt we have got stronger social safety nets in europe as a permanent fixture where in the u. S. These had to be put in ad hoc. I wonder what you think of the possibility of a fiscal package in the u. S. The democrats have a 3. 5 trillion package that passed the house. The republicans are wrangling over a 1 trillion package. How quickly does the market need to see it . Ben something will happen. The market knows that. It is a question of size and where it is directed. In europe we have seen it directed at infrastructure and green initiatives similar in china. In the u. S. , does it become more directed at infrastructure or the consumer or individual, through tax cuts. Depending on how you see that unveiled, that will lead to some intermarket nuances or differences. Willnk the fiscal plan come. I dont think there is any real question about that. I think it will be quite positive for risky assets. Plenty of people want to see fiscal stimulus. You talk about how you are neutral in europe excluding the u. K. We have seen a big fiscal stimulus, so why the neutrality on europe . Ben the neutral does reflect i am generally more optimistic on certain parts of europe. The industrials and materials of europe, the auto manufacturers, we are seeing an increase in demand for auto demand because people dont want to use public transport or to try to work. They want to maintain social distancing. The real problem for me is quite a heavy weight on financials and banks and european indices. While we are in this environment , type of rate environment, that will be weighing on the Banking Sector and ultimately weighing on the india european indices. Europe is about finding opportunities in the region instead of buying as a whole. U. S. And china are dominated by tech, those areas will do well whatever. They will lift the indices. When you are doing that regional country allocation, it is still a u. S. And china story. Matt we have got more to talk about with benjamin jones. Intelg in the chip, warrants of another production delay. We will look at how the Company Shares compared to its biggest rivals. This is bloomberg. G. 20 minutes to go until the start of cash trading action. Futures suggest some weakness. Some of them emanating from the u. S. , as futures continue to weaken, we are down on ftse futures and euros stocks futures. Poised to open to the downside. U. S. Futures down. One of the things spooking markets and investors is the recent developments in tech. Another production delay from intel. The Worlds Largest chipmaker could fall further behind its rivals in an area it wants dominated. They say the first its first seven nanometer smaller more powerful chip will now go on sale at the end of 2022 or early 2023, a year behind schedule. Tech stocks are in a bubble with the nasdaq earnings that exceeded analyst forecasts. Companies have fallen in six of the last nine sessions. What do we see in store for check . Tech . Are you not nervous by the Market Action we have seen . Ben not really. The chart you just showed, you circled the last doubledip on the end little dip on the end of it. It pales in comparison to the rally we have seen over recent years. The difference now is the companies are making money. The earnings are very strong, which is unlike the tech bubble. You said it at the top of the call, the companies have beaten analyst expectations on earnings. I think the result of the pandemic has supercharged or accelerated the themes that were already in place at the end of last year and previous years, theasing reliance on tech dominance of the tech sector above all overs others. We are using Technology Far more for working and personal lives. We are doing this remotely from home, working remotely. A lot of the extra sort of backups are going to be in for a long time. I will drive tech and software and demand going forward. I am happy with the tech from here. We have got to remember tech is of the spectrum. That is the style or factor investors are focusing on, continuing to drive markets higher. I dont think it is a bubble. I dont think we are seeing a repeat of 1999, 2000. Matt do you think the valuations make sense . 26 on seeing upwards of the s p 500 and the nasdaq is stratospheric. The idea of these are Growth Stocks and they will be posting bigger jumps in earnings. If you look at a company, there is an electric carmaker worth more than 300 billion and it is not making nearly as much as volkswagen in terms of earnings but it is worth five times more. Ben i cant comment on the individual names, but there are some that will have these stretched and probably quite wacky valuations of course. When we talk about the index as a whole, when we talk about the software companies, a lot of these are trading on reasonable multiples. Most of the earnings back in the. Com bubble, it was multiple clicks and sales. The other thing to look at in a subscriptionbased models, not based on models where the earnings are choppy. They are almost becoming utility like but with the growth spectrum as well. They have got to quality of earnings. That makes them very attractive in my view. Aree are some names that working and difficult to swallow. Some that were doing that and they are much, much higher levels and they have proven their worth. Those multiples were able to deserve it. We will all still be talking about amazon. Thank you very much. Lets get a Bloomberg Business flash. Spacexs value is going higher. It could refund at a valuation of 44 billion. That would make it one of the most valuable companies in the u. S. Two astronauts to the space station. Disney is canceling the august release of mulan and delaying other movies. For a third time the remake has been postponed, this time with no release date. Some cinemas are having to push back reopening plans. The top five richest people. The 77 billion fortune is up nearly 19 billion so far this year. That leapfrogs others. The chairman of Reliance Industries that is your Bloomberg Business flash. Matt thank you very much. Laura wright. Gold trading near 1900 dollars an ounce, edging closer to its alltime highs set almost nine years ago. The Mobius Capital Partners cofounder mark mobius says gold is an attractive asset to hold right now. He spoke with bloomberg on emerging markets and the precious metal. Interest fact that as rates have gone down, the emerging markets rates with sovereign debt and corporate debt can also move down. Amount ofthing is the money the world bank, the imf and other organizations are putting into these markets to enable them to pay back their debts and do infrastructure spending. Within the countries themselves, they have been increasing spending, taking a lot of the budget which will be greater. Theas been pouring into markets. I think it is a combination of these things that led to an increase. The interesting thing is gold has done just as well as the equity markets. I noticed that although gold lagged since the beginning in march this year, until now, gold has lined the s p 500 lagged the s p 500. But both have gone up about the low inom 75 from the five years. So we are in a very interesting situation where people are looking at stocks to preserve their capital because stocks will in just i just to inflation and gold i just when i look at real yield in the u. S. And then i look at gold, that doesnt really say vshape. In terms of Inflation Expectations we are like 100 basis points off where we were a few years ago. How do you reconcile that . Mark when Interest Rates are high, people will tell you you are holding gold, gold does not pay any interest. But when Interest Rates are near zero, gold is an attractive medium to have. You dont have to worry about not getting interest on your gold. You see the price will rise as uncertainty in the markets are rising. One of the other interesting things about gold. I havent looked at the numbers recently, what is the supply coming out of the mines going to be, with the covid. I assume the output should be declining for gold. That puts additional pressure on the price. When you look at the u. S. China spat, does not diminish significantly your does that diminish significantly your appetite . We should expect more fights between china and other countries. Mark we have factored that into our calculations. China is important. Along with brazil, china and india are very big for us. We look at china, Chinese Companies in a separate light. We look at mobile, nonus activity. You have seen Alibaba Financial Services has com in southth voda africa to provide apps. This is the kind of thing that is happening. These Chinese Companies are moving globally to places where they will not be affected by the situation in the u. S. Alix we will get to that in two seconds, but gold, are you buying it . Mark i would be buying and continue to buy. What about silver . Mark silver also because it will follow gold area gold is of course the most important. Interesting thoughts from Mobius Capital Partners cofounder mark mobius, speaking with alix steel and francine lacqua. A few minutes to go for the european trading session. Equinor to the ceo of earlier. Kicking off earnings season for the oil companies. We will talk about the stocks we are watching next. This is bloomberg. His is bloomberg. Minutes away from the start of cash trading across europe and in the u. K. Lets get over to dani burger. Dani one of the stocks is equinor posting a surprise profit, one of the big oil and Gas Companies report and they were helped out by trading gains as well as legislation in norwegian, a tax change to help the industry get through the coronavirus pandemic. Second quarter was tough for oil companies. The ceo telling you he expects more volatility in the second half of the year. Another one is vodafone, revenue falling 1. 3 , the expectation had been a fall of 2. 14 . The plan is early 2021, frank for, this has been a big concern from investors who feared the pandemic would delay this ipo but shows how committed the ceo is of squeezing as much profit from its various assets. On the other one they have announced a they are selling nrg for 3. 6y to billion in cash. They are pausing their Nuclear Device meant process. They aimed divestment process. We saw operating profit drop 14 . Much. Thank you very dani burger looking at your stocks to watch. The market open coming up in less than five minutes. We see futures pointing lower on concerns about the continued economic effects of the coronavirus pandemic and the. Ncreasing chinau. S. Tensions the open is next. This is bloomberg. Bloomberg. We have seen income we have seen in some cases a reduction. But that can be only temporary. Probably the longerterm solution is to see more fundtment recoverytype that you see in europe but also infrastructureled stimulus coming through. To encourage those things to get out into the economy and get used and multiplied every time, that is what were looking for. As you say, people are cautious. Cautious because of the virus, but also about job security. Will see that level come down very slowly over time. I was watching a jack ryan film last night and the premise of the movie is the russians try to cause serious damage to the u. S. Economy and short the dollar at the same time. And i thought ang on a second, that does not really work. Because whenever there are real problems for the u. S. , investors globally flocked to the dollar. Do you expect to see the dollar strengthened again. I think i have seen that movie too. Its interesting this time around you are seeing dollar weakness on some of the latest concerns over the last 24 hours. Strength of public currency is a safe haven. Even the the European Parliament with some issues in terms of the validity of the rescue package agreement. And of course that money is not going to be spent until 2021 or 2022. Are there any concerns for you that this rescue package somehow gets off track . They getk once together and supporting each other, which is something that has always held back the euro, so that is a reason why you get those spreads. I think we will see a realization that without it, the economies are not going to recover in the cost of debt will be too high. In the interim the next couple there, the ecb are supporting markets and the pandemic program. And that will be driving spreads lower as well. Concerned that the deal gets thrown out. Essentially we believe it will get through. Let me ask you about some data just breaking. This is to dual with manufacturing and services pmi in france and we are going to get more of this through the day. The big point here is we are firmly back above 50 on both fronts, in particular services. Manufacturing at 52. Services pmi at 57. 8, the forecast for 52. 4. People asking how meaningful those statistics are given what we have seen. The euro is not getting much ground on that but still just above 1. 16. Data on thethis speed of recovery in europe threaten to change your strategy at all . I dont think so. I think without the low interest he spokecture, which about with shrinking spread across the european bond market, this recovery is not going to be maintained. In this sort of environment theres a bit of an on off switch. You are going to get numbers more than 50. Very difficult to work out isther eight 57 or 67 number actually happening. The fact the economy is recovering is good news. I do not think it changes our outlook. The euro has had a very good week. Someect to see profittaking and consolidation, especially this friday. I am not too worried about the euro over the next 24 hours. Thank you very much for joining us today. Hes going to be continuing the conversation with us on Bloomberg Radio at 9 00 a. M. U. K. Time. And im glad because i have more questions. Asi took a last question i took a shower last night i was thinking about tips. Coming up, suing google for pay disparity. Four former employees are trying to bring a class action suit and get it approved. More on that next. This is bloomberg. This is bloomberg. When we went through this quarter, we knew it would be challenging. The mantra was if it costs money, the answer is no. It is still very difficult to predict. So we should never be complacent. We will have to watch carefully to see if there is a true significant second wave in the second half. As we look forward, we think the results of the second half of the year will improve. We do not have the courage to give Firm Guidance for the second half. There will be stimulus in the markets. There will be political uncertainty. There are a few ingredients in the second half that can truly drive forces. Interesting voices, some of the ceos we have been speaking to during earnings season so far. Lets take a look at some movers, and these a stocks responding to the earnings stories. Secondquarter numbers beating estimates. The ceo saying the company is ready for recovery. Selling their are u. S. Energy unit and they are up by 21. 5 . Focus. N also and it is the broader chip base in focus from europe. Intel warning about another production delay. As a result we see infineon down by 4. 8 . Broadbased selling across trech tehc. Nasdaq features broadbased selling across tech. Nasdaq futures down. I want to bring up some breaking news on treasuries, or on pricing of treasuries. Five year treasury yields. You have seen they have fallen to a record low of just over 25 basis points. If you take a look at the five 0. 2548. Re, we hit i will follow tom keenes example and go out five significant digits, which i think is what fixed income traders prefer. 0. 2548 . Figs, because you do not count the zeropoint . My producer correcting me. He is much closer to High School Math than i am at 46. You can see this drop. Its just another example of the incredible shrinking yields. We had a story the other day on Bloomberg News about a huge amount of treasuries, of sovereign debt being issued. Eventually going to overwhelm centralbank buying, and then you would see yields rise. I hope this happens before i have to start buying these bonds for my daughter. Because at 25 basis points she is not going to make much. That is true. Depends on the investment horizon you have in mind. Interesting story. And it is interesting to see as we get headlines on the u. K. And the u. S. , the amount of borrowing that is happening. Yet these yields remain as low as they are and in many cases continue to fall. When will that catch up with us . Turning to the business of equality, four former employees of google are trying to get a court to pass a law suit that would allow the women to represent more than 10,000 peers in a disparity suit against the tech company. For more on this we are joined by jennifer. What is the latest on this google story . Andlassaction status gender discrimination lawsuit do not have a good track record within the tech industry. But these four former google employees are hoping to step up rusher on the industry and move the needle forward. If they are granted classaction status by a judge, this would enable them to represent over 10,000 of their colleagues. According to the lawsuit, they say google paid women less base salary, smaller bonuses, and even fewer Stock Options than men in the same job code and location. And they claim the behavior spanned all different positions across the company. It is important to note this case dates back to 2017. Google has tried to dismiss it in the past. In 2018 they try doing that. Theirle official defended policy and called the claims unfounded. With the current climate i imagine a lot of eyes will be on which way the judge sides. Earlier this year a group of women suing oracle over unequal pay marked a huge milestone for the industry when they won class status. Similar cases against twitter and microsoft were denied. This class certification hearing is not until december, but if granted, an economist at uc irvine estimates these women could seek somewhere near 600 million in damages. Thank you. Do not miss our quick take show at 6 00 p. M. U. K. Time tonight on facebook and on sunday, july 26 on youtube. This is bloomberg. S is bloomberg. 49. 50 i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Xfinity. The future of awesome. Matt welcome back to the european open, 30 minutes into the trading day, looking at losses across european equities. Lets look at the benchmark stock 600 index right now and see how its doing in the first 30 minutes of trade. You can see it has come down and is now off 1. 7 . If you take a look at the grr screen, which is your group rank returns on this index, you can see which groups are following the most. Loser, the biggest leading the big tech tech drops in europe. Youve also got health and basic resources as big losers. In fact, all of the groups are falling, oil and gas and utilities falling the least. Lets get the bloomberg first word you know what . Let me give you the german pmis first. 56. 7, and the forecast was only for 50. 5. So the German Services pmi for july blowing the estimates out of the water. In terms of manufacturing, its also a beat, not as far into expansion territory. The manufacturing pmi in july was a solid 50, even 50. And the forecast was for 48. Those of the pmis, which you are going are the pmis, which you are going to watch closely. Now lets get to laura wright. The u. S. Economic recovery looks to be stalling. Continuing claims did drop slightly. The data comes as hundreds of billions of dollars of federal aid is expect set to expire as the u. S. Economy could be on the dip of a double recession. Flu Vaccination Program through the winter as it seeks to protect the nih from a second wave of coronavirus. They hope to vaccinate 30 million people, almost twice as many as last flu season. 65s available for the over and at risk groups will be available to everyone over age 50. Disney is canceling the release of mulan and delaying star wars and avatar movies. This time, with no new release date. Some cinemas are having to push back reopening plans. Global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. Anna, matt . Anna thanks very much, laura wright with an update there. Coronavirus lockdowns change the way public space is used. As the recovery enters the next phase, how much is here to stay . Joining us is fergus osullivan. Good to speak to you. Youve been looking at how authorities and residents have been reclaiming open spaces in cities. What commonalities have you found . Fergus thats right. We found during the pandemic and recovery period, space is at a premium. Pedestrians meet need more space on the pavements. Food and drink need to move outside because interior spaces are safe, and bikes, the safest way of traveling long distance, they need safer space on the road. A fight tolly compete for demand. Protected bike lanes have been carved out in many cities to make getting around easier. Out,00 of them were bowled bars and restaurants moving outdoors, not just pavements, but taking over entire streets, something we have seen in many, many cases. I saw a lot of streets closed. I was in spain last week, a lot of streets closed so that bars and restaurants could move their tables further out into the space. Here in berlin, a lot of lanes we used to drive cars in have been shut down for bikes, which also means not only can you not drive in those lanes, you cant park on the side of the road. And as a result, really increased traffic to the point where i think the mask is definitely an advantage to my health. How else do we see trouble changing in cities . Youve already seen those changes yourself. Certainly, we cannot, at the moment, get around cities in the way we used to. We cannot possibly safely return to the kind of volumes of people moving around cities in the way that we were. Thats meant, so far, thats meant prioritizing things like walking and cycling over cars and over public transport. But there are some problems with that. We found in london, for example, car traffic has gone back to about 80 of what it was before the pandemic. Its more or less recovering. But transport use is at 37 . Other people dont need it because they are working from home, or they are still afraid of risk calls to by caused by close contact. So right now, were in a position where probably most people are going to need to stay working from home because we dont yet have the means of going safely back to work while maintaining social distancing. Yeah, have to say thats the major reason im sitting here and not in a more Central London location. The paris mayor have been talking about the 15 minute city, something talked about before covid and increasing amount of tension. Is this a seen many around the world are picking up on . Fergus absolutely. Paris has gone further than anyone. They have a commissioner. They have an officer looking after that concept. In which almost all of the city needs can be met. That means work, leisure, school, everything locally accessible. Lifedoesnt just make easier. You can use it for other reasons. It cuts pollution. The reason why that is brewing at the moment is not just because it is more sustainable. Its a type of way of organizing urban space that is far more resilient to pandemics and lockdown conditions. Were livingif like that anyway, far less disruption in our lives. That is what is being discussed in london, both of the boroughs and citywide level. Its very much come out of this niche space talked about widely across the world now. Thanks very much, contributor for blue brick city lab. Bloomberg city lab. I think its something that interests everyone watching the program. We will have fergus back as soon as we can. I want to check out some of the risk assets we see putting up big moves or getting near records. Gold close to the big round umber of 1900, right now at 1894. 91. You can see silver, as well. Is six, which significant figures. Up next, a car made out of corn . Offering biodegradable cars to young people. Well talk more of a future of a Cashless Society and generation z with the company founder. This is bloomberg. Anna welcome back to the European Market open, 41 minutes into a trading session weak for equity markets, down 1. 9 , use futures also weaker. We u. S. Futures also weaker. China u. S. Tensions part of the story, weak u. S. Data also a key part. The numbers we got from intel weighing on tech stocks. The coronavirus pandemic increased the need for cashless payments, and Startup Company go henry is empowering young people to take part in the recovery. They offered a Prepaid Debit Card and app designed exclusively for six to 18yearolds, to help them learn good financial habits. The startup also launched the first ecocard, which is biodegradable and made out of corn, apparently. Lets speak to luis hill. The founder. Good to speak to you. I was reading with personal interest about your business. I wanted to ask you, whats to stop banks from doing what you are doing . If they have the customer base, what is to stop them and then parents dont need another product . Louise when we started months ago, that was something we thought a lot, banks would come in and copy us. But what i realized, this is an area that is our focus and the banks think of it as an addon. And their legacy systems, their infrastructure means they are not able to be as noble and quick as we are as a start up and also, as i said, its not their prime business. We launched a product that was aimed at parents with kids in this space and we were able to design something that was perfectly targeted to that. Matt i imagine this gives you a. Aluable snapshot i saw a little bit of fortnite in the intro video. I will admit when i started playing, i thought the skins would give me added advantage over competition and i dropped 99 quit on a pack of skins quid on a pack of skins. Is this what kids are buying . Louise its amazing to see where the money is being spent. We released, in october, an economy report, the biggest report ever of its kind looking at actual spend, not survey data, but actual spend and where children are spending their money. And its really interesting to see. Precovid, and i have to say that, teenage girls are absolutely propping up the high street. They are using money as a social tool to go out and about. And maybe, predictably, teenage boys, one of the stats that amazed me, 1213 year old boy is are spending an average of 200 pounds a year on gaming, exactly as you said. Anna right, teenage boys and matt. Were getting a lot of insight into mets viewing and gaming insight matts viewing and gaming insights today. Let me ask you about the monthly fee. I find that interesting because you are educating a new generation of Bank Customers into the idea they will pay for banking. Most people in the u. K. Dont pay for banking services, at least with an upfront fee. Did you think about other ways of funding this model . Louise we did. The simple fact is every Single Movement of money, we have to pay for, and so do the big banks. The big banks, their Business Model in the u. K. Is more around making their money from mortgages and credit, and that kind of thing. Obviously, thats not open for us, so we need to charge a fee. We make that fee as low as we possibly can we make it as simple as we possibly can. There is just a monthly fee per child per account. Matt where are you looking to grow . I know that some countries, like here in germany, still value cash. Whereas in scandinavia, there are so many places where you can only use digital. So, what do you see as far as growth plans are concerned . Louise for the moment, we operate in the u. K. And the u. S. We launched in the u. S. Almost two years ago, and a couple of months ago, we hit one million active customers between those two markets. We still have a huge amount of going to do in the u. S. , but yes, eventually we would like to rollout wider than that, and actually as you say, when you start working around the world, the concept of teaching your children around about money is worldwide. The only limits for us are access for the internet, access to Digital Online spending, and that is incredibly widespread. There are variances between countries, between germany and scandinavia for example, but the market is huge. Anna clearly, your business benefited people who want to move to a Digital Society. But that said, how much quicker do you think we will move towards a, i dont know, fully Digital Society given covid19 . How much has that spat up the process sped up that process process . Louise hugely. They obviously have access to digital spending and a cart. They sell card. They very seldom use cash. Spent by gopounds henry customers. 17 to take out cash, the rest was card or online. With covid, thats increased. Contactless has become even more mainstream. Weve often talked about our customers and generations being Digital Natives because theyve grown up with online being part of their lives, learning through the internet and computers, etc. But they are cashless natives, and probably the first generation of cashless natives. Anna thanks for sharing the story with us, luis hill, condor louise hill, founder of go henry. I can see the gold price right 1. 900ot far from the mark. There is about global growth, and thats continuing to boost the precious metal. Well discuss that next. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open, 52 minutes into the session, looking at drops of 2 in frankfurt and paris, 1. 67 in london. Gold is trading near 1900 an ounce, edging closer to its alltime high, set almost nine years ago. Cofounderital for says gold is an attractive asset to hold. He spoke with bloomberg on emerging markets and the precious metal. Oh yes, i would be buying now and continued to buy because gold is on a run. What about silver . Gold is theso, but most important. Joining as now is bloombergs markets live able editor. Its understandable mobius would advise investors to buy and continue to buy gold as long as hes holding it, but to a lot of people, it just doesnt really make sense. Theres no return. You cant directly buy things, transact with it. Was it your line that it might just be a pet rock of sorts . That is something we here in the gold market a lot. It is true. It pays yields, but nothing else does at the moment. Istty much everything disconnected from fundamentals at the moment. What gold is telling us right now is more that theres a lack of face in policymakers, and gold is that kind of referendum marketelse the perceives central bank of doing, and there are enough people out there worry about worried about policy that they want to buy something that is a hard asset and, you know, for a fairly low cost. Anna thats interesting. It was actually our colleague, mark gilbert, thats is offered gold offers protection against central banks, but if you dont like gold, you suggest its a pet rock, which is a brilliant line. To what extent does this rise in gold suggest we lost faith in what central bankers can do here . We see yields on Government Debt continue to move downward. I wonder how that plays in. Eddie thats a very important factor. Piece and its a strong piece this morning. Theres been a lot of commentary on gold. I think that is the key here. I think partially, what they started was the lack of faith intentional banks. The from here on out, what happens is people Start Talking about it. You see more columns about it. You see excitement building around oil price. Gold is a mania prone metal. You talk about it more, you draw more retail, it pushes the price up. That makes it test record high more likely, and gains beyond that. Matt what do you think about the rally weve seen in silver has mobius put it . It follows gold. How do you see the relationship changing, though . Quote right, my favorite is that it echoes and amplifies gold. It does move alongside gold but it does whatever gold does, more so. And if you see larger hedge funds, it can move quickly. I was looking at the data yesterday. To2011, silver went from 26 50 in the space of three months. Its a metal that can move quickly but it can also come down quickly. Youve got to be a fairly fast mover if you want to get in on that rally. Us, thanks for joining eddie joining us with the latest on gold and silver. We have a selloff on the weight in global stocks, asia through to europe, u. S. Futures also pointed lower. There is increasing concern about tech, nasdaq futures down 1. 3 , low intel numbers getting attention in europe, as well. Matt yeah, nasdaq futures dropping about twice as much as we see s p futures falling right now. So, amtek is the biggest losing group and tech is the biggest losing group in cash trade. Well talk about it more on radio. Francine tit for tat. To closels the u. S. Anotherulate in location. U. K. Chancellors asking for an extra relief fund for scotland, northern ireland, and wales. The nasdaq erases its gains for the week over concerns