Transcripts For BLOOMBERG Bloomberg Markets European Open 20240712

Deal. No let up in germany. Angela merkel ruled out further loosening of measures after europes largest economy records the biggest spike in cases in four months. Asian stocks trade mixed following a fresh record on wall street. European futures point to a positive open. Good morning, everybody. Welcome to the program this wednesday morning. Lets have a look at terms of breaking news. Notes coming through mace maersk. The fullyear numbers, 6,000,000,0007,000,000,000. This is new guidance coming through. That is interesting in itself. The guidance we previously had in the year had been withdrawn by this business which operates 20 of the world container fleet. They are giving us this new guidance here. Looking at the underlying profit numbers for the second quarter. This is the backward looking part of it. The underlying profit data is 359 million dollars. They have done better than the estimates. We will be speaking into the management of maersk later on in programming. We have u. K. Cti numbers coming through. Ive been reading our preview from the Bloomberg Economics team. Consumer prices rising 1 . The estimate was an increase of 0. 6 . If you are looking to build a narrative about inflation, this helps you. The inflation number coming in hotter than has been anticipated. Thatbelow any 2 target the bank of england might have in mind. Retail prices and a few other details coming through. We will see deflation in august numbers. Part of the reason for that is the temporary sales tax cut that we saw from retailers. Like we do looks drag on prices into next month. Bigger than expected. Maybe we see Something Different in the next month. Lets get to the futures picture. This is what we have from European Equity markets. U. S. Meters flying in terms of the closing level. Alltime high. The s p and other index is making new alltime highs at the close. In terms of futures, we expect to go higher. U. S. Futures pointing to the upside. European futures up by 3 10 of 1 . More than that on dax futures. We will see where we end up at the start of trading which comes in and 57 minutes. The dollar is a big source of conversation topics at the moment. Lets get to gmm to show you what is on the move. Weve been fairly mixed through the asian session. Weve been close in hong kong during the morning session. That is something to be aware of. Chinese stocks under pressure because of new guidance to University Endowment funds about divesting away from chinese stocks. The dollar was steady today. We dont see much movement. We have seen a great deal of weakness. Steady around those two euros. Lets go to bloomberg first word news. Here are the top stories we are covering here at bloomberg. Joe biden is the democrat nominee for president. It was confirmed that a virtual rollcall during the remote convention. A slate of speakers from former president bill clinton to representative alexandria ocasiocortez. Biden himself will close out the event on sunday night. Compromise in the stimulus deadlock. Nancy pelosi says the democrats may be willing to make cuts to their rescue package to seal a deal with republicans. She wants a comeback after the election with more items on the agenda. A senior official tells us the white house sees the possibility of a pair down package of around 500 billion. Belarus is president has put the army on alert, deploying it to the countrys borders with the european union. Its an escalation of tensions as he faces mass protests to his 26 your rule. The bloc holds a special summit to discuss the situation in belarus. European leaders may decide new sanctions are needed. 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. Lets take a look at the markets. Wall street had a record close, propelled by tech shares. Betterthanexpected housing data. The dollar is steady. Near a twoyear low. Lets get into the markets with laura cooper. Assets and see risk u. S. Stocks heading from here . Between i divergence whats happening in stock markets and the underlying economy. S paw these levels on the unemployment numbers looked different. Is that entirely normal . Lookould expect them to distinct at this point. I dont think that its normal in this current context. Largely, the theme of that has remained unchanged. We look at what is underpinning the rally, it is largely the same. Datalus efforts, economic pointing to a solid recovery ahead. Vaccine optimism against the backdrop of relative case count improving. Where do we go from here . Increasingly looking like risk assets are vulnerable to news flow, given the fact that a lot of this good news is priced in. Its crucial to look at the lack of bread we are seeing in this rally. Two thirds of the s p 500 continue to remain well below their february peaks. It is driven by this tech story at this point. I think that that is increasingly vulnerable heading into election risk. Given the fact that we have u. S. China tensions as well. Anna where do we think the dollar is going to trade . Abouter of guests talked this. Volatility in the dollar heading into the election. There are so many uncertainties about how the dollar would respond to various election outcomes. Volatility lies ahead. Absolutely. We could see the dollar catch some temporary bids. We see risk beginning to dominate in terms of secondly risk, rising case counts. That could support the dollar in the near term. Ultimately, what we are going to see is the dollar continuing to remain under pressure. We are seeing exceptional stimulus coming from the fed that has yet to play out in the dollar. Hasdollar weakness to date largely been concentrated within the g10 sphere. It has held up relatively firm against the em currency. We start to cem outperformance, risk sentiment taking hold. Ultimately, we expect to see the dollar coming under greater pressure against emergingmarket currencies. Anna i want to ask about the pound. Data. T broke that cpi more inflation in the u. K. Than many had expected. We see a spike up in the pound. Not an enormous amount. Still, 132. Weve arranged all of the losses that the pound has maned against the dollar for this year. That is quite something. Is the pound as honorable vulnerable . There are brexit headlines still to come. The pound is honorable to downside from here. The core cpi was quite surprising. Thats largely a backwards looking indicator at this point. Given the fact that the u. K. Needs to brace for deflation, given the temporary tax measures in place. The collapse in demand that weve seen. Look at what markets are pricing in. Points bytwo basis the end of the year. Less than 10 basis points over the coming 12 months. Thats really optimistic, given the fact that we have these brexit risks. A very tight sevenweek timeline in order for the eu and you can reach an agreement. Looking at the underlying volatility. None of that risk premium is reflected in the currency at this stage. There are certainly risks for downside going forward. Anna thanks for joining us, as always. Next, is the best over for european stocks this year . We open up thel European Equity market this morning. Thats the forecast from a Bloomberg Survey of equity strategists. Theres not much more in the tank for europeans. We discuss, next. This is bloomberg. Welcome back to the European Market open. We still have 45 minutes to go until the start of cash equity trading. Futures are firmer. We saw a new closing high on the s p and nasdaq. Lets get a Bloomberg Business flash for you. Heres our todays top stories. Goldman sachs signed a deal with malaysia to finalize its 1mdb settlement for 3. 9 billion. The west bank announced an agreement in july but it is now concerned. It doesnt resolve the probe by the u. S. Justice department. Its a malaysian state fund at the center of Global Investigations into money laundering. Amazon plans to make it harder for merchants to slip ship products by itself. They will be more likely to pay the company to handle the task for them. Sellers will have to honor today delivering pledges. If they cant, they risk losing a prime fast shipping bad. Germanys utility giant is planning to raise up to 2. 1 billion in a share sale. 10 of market value, depending on the pricing. It could be the biggest offering has been share of new shares in the region this year. They are hoping to use the money to expand its Renewable Energy operations. That is your Bloomberg Business flash. ; 14 in london. The best days may be over for your and europes equity rally. Stocks are stuck at the same levels they were at two months ago. Equity strategists see little changing. Upside as of tuesdays close. We are joined now by nick nelson. Good to have you with us. The perfect want to get insights from on the subject. A survey of equity strategists. Would you go along with that assessment or are you more optimistic . Nick good morning. I would agree with much of that. We were significantly more bullish a few months back, seven months now. Marketspoint, clearly did look oversold. Valuations look attractive. We were starting to see policy response, both monetary and fiscal. At that point, the upsides appeared quite large. We think the markets got too fast. We have some modest downsides, about 5 . Given how much markets are moving day today, we are relatively neutrally valued right now for europe in absolute terms. Thats the headline. When you look at it relative to other assets like bonds or other equities like the u. S. , europe still looks attractive. A difficult situation for investors right now. Anna let me ask you about where europes its in the mix. Look at it versus other assets and stocks. In terms to your today performance, europe underperforming the u. S. The s p 500 up 5 . Euro stoxx 50 down 12. Does this underperformance in europe make sense to you . Bank of America Survey talked about the euro era being the most preferred for many investors. How do you tie those things together . Nick maybe theres more enthusiasm for the europe. Thats only in the last few weeks. Europe has lagged the main index. About 15 percentage points. Thats huge over this time. A lot of that has been become because of the sector. Great performance by tech stocks or biotech stocks. In europe, we dont have that market cap. We heavier into banks, energy, autos. That explains part of the gap. I dont think investors are actually necessarily overweight europe. Maybe they are starting to think about moving. Look at the currency. Moving the euro against the dollar in the last few weeks. Maybe thats a sign of assets shifting out of the u. S. And europe. You relative call coming you could see some of that underperformance potentially catching up. Strategist reading a referencing pmi data and suggesting there might be, a move in pmi. Allied moving european stocks. That relationship between pmi indicators and stocks, does that still hold . To verybe subject different influences in the covid19 period. Nick thats right. When you look back over time, a lot of the analysis we use [inaudible] greathave always been indicators for a turn in the equity market. Turned inmis december. A couple of months before the market low in march. Foras a good indicator investors to start moving back into equities. Look at europe. Pmis at a low around q1. They were down to 13. They are up over 50. Thats giving you some confidence that things are getting better. One word of caution on this. The pmis are referring to the change and Economic Activity, not necessarily the level. 50, the most recent numbers are improving compared to the month before. Given the fallen gdp in the second quarter, we are nowhere near the level of the Economic Activity we were at the beginning of the year. Downgrades are starting to slow. We are still way down from where we were in terms of the level of earnings for companies. The consensus thinks by the end 5 next year, we will be at below where we were in 2019. We think we will be worse on that. 15 below where we were in 2019. Yes, things are getting better. Pmis are a great indicator. The levels are very depressed because of the shock in the second quarter. Thanks so much. Stay with us. More coming up in the next half of the program. We will discuss whats going on in germany. No let up. Angela merkel rules out further loosening of virus measures after a surge in cases. The rest of europe watches on nervously. This is bloomberg. Anna welcome back to the European Market open this wednesday morning. 40 minutes until the start of equity trading. European equity market futures pointing to the upside. Flat to positive. Angela merkel has ruled out any further loosening of virus measures in germany. The chancellor said a doubling in the number of daily cases in the country of the last three weeks. Europes biggest economy recorded the largest increase in infections and nearly four months. Fears about a resurgence across the continent. Nick nelson is still with us. I wonder how vulnerable your thoughts are on the earnings picture for european companies. How vulnerable are they to further lockdowns . It will depend on whether we see very localized lockdowns taking place or something more national. Nick yes. We saw that in the q2 results. A few stragglers coming in. Maybe surprisingly, it has been a reasonably good result in terms of where companies have provided compared to their estimates. Its the best in almost three years. I think that comes after the massive downgrade we saw in march, april. Those were the worst since the data started 30 years ago. We had the bar lowered very aggressively. Companies beat us by far. Over the quarter, you went in with most companies countries and lockdown. Corporate profits were affected by that. You exited with us opening up. Phase, muchecond more likely to be reasonable regional lockdowns, national lockdowns. That will take a bit of financial off of the recovery and will become a problem for corporate profits. There is little visibility when we look into the second half of the year for how companies can deliver in terms of profitability. A focus on these regional breakdowns. More partly, how governments respond to that. Anna thats interesting. To thew my Attention Company guidance that weve had so far through the earnings season. 12 months Forward Guidance on margins, 7 . We will see a bottoming out in the round around that level. Thats similar to the lows we saw around the financial crisis. But the most comforting. As a body, the corporate reporting sphere is going to remain profitable for all of this. Is that what we expect to happen . Nick yeah. That is what the consensus for the estimates are. Crisisse the financial is as close a comparison that we have. We dont have any real comparison. Its a useful one. It is recent. A decade ago. Its refreshing. We are to see companies remaining profitable across sectors. I wonder. We think theres more downgrades to come in terms of the consensus estimates. Look into 2021. 40 . Ink the bounceback, we think that could be too aggressive. We are more like 25 in terms of the bounceback next year. I think you are right. Around decent profitability. Is the the issue bounceback next year. It might not be as good as people are expecting. Temporary lockdowns. We also have Government Support schemes, which have stopped the costs to companies. They will start to fall off in the new year. Anna thanks so much for joining us. Coming up next, we talk to the managers of maersk. This is bloomberg. No one knows what it is going to be like to lead during a pandemic. Welcome back to the European Market open, 30 minutes before the start of the european cash equity trading, a day of the u. S. Equities, the nest at closing above alltime highs. Lets get back to corporate earnings season. Maersk has restated their level,s at a higher between 6 billion in 7 billion, staying open for business throughout the covid19 crisis. We are joined now by the ceo of maersk, his first interview of the day, soren skou. Able, how is it you were to produce new guidance today that is better than the guidance you had to withdraw earlier on in the year . What is it that has gone well . Been our business has negatively impacted significantly from the coronavirus on our volumes. 14 , 15 , 16 . Our profits were up. We have done very well on the cost side. We have done a good job of adjusting the network to the capacity needed, so that is driving things. So that is why the higher guidance. What kind of visibility . You have given the guidance, so i assume you have some kind of visibility. How good is your visibility this year and into the next . Soren we are halfway through the quarter. Month. As the worst volumes were down by 20 yearoveryear, and since then, we expect in the Third Quarter that global trade will be down year on year, in the mid single digits. Could combine with low cost and slightly higher prices, guide ours we can operations. Improved, but what expectation do you have for when volumes will normalize, back up to 2019 levels, i suppose . Soren welcome our basic scenario has been for quite a while now that we would see a ushaped recovery, which means back to the 2019 volumes sometime in 2021. Anna you mentioned that you have been successful on cost. What is it you have been able to do to bring costs down . Soren well, like most companies, we have benefited from less travel expenses, but it is really the fuel prices, our network costs. We operate seven ships. We have cut down on the capacity that we deploy. That means we are saving money general, and then, in all of our operating costs, of course, going into the crisis, not knowing what would happen, we accelerated all of the costsaving initiatives we had in the drawer, so it was across the board. Freight rates have been going up. It some of your business, suppose, operates on contracts that were signed at different times. How much were you able to and if it from those freight rates rising . Volumes, contract volumes, so the freight rates are what the freight rates are. The other half are volumes where we benefit from higher fright freight rates when they go up. Mentioned taking some capacity out or reviewing the number of ships you are offering. How much vessel opacity have you taken out, and has that been something you think has support to those freight rates . Pandemic, through the with the capacity that our customers need, and, obviously, we took out a lot up front. Inplanned on taking that out april when the crisis really hit, and then we have been reinstating, if you will, pacitti in line. Your do you expect any of rivals to get into trouble . Will this be an opportunity for you to buy up smaller players . Is that something youre interested in . With the acquisition we did in 2017, our ambitions in ours on the carrier side, plans have been met, at least for now. Our focus is growing our landsideand our logistics business. Anna and what about others in the sector though . Do you expect consolidation to be a theme . Soren i personally believe we will see one more round in our industry. But the carriers in general will come out of the covid pandemic stronger. People had me, most good secondquarter results, so that consolidation is probably going to be later rather than sooner. Anna in terms of your balance sheet, you finished a round of buybacks, not with businesses, that does not seem to be on the front of shareholder mind, but are you thinking about when in the future you could do any further buybacks, or is that just not a topic of conversation at maersk right now . Soren well, it is a topic. We finished our Current Program in july. We have plans. We will do that in the fall quarter and then come out with some statements in connection with the full year. Is our intention anna yes. Ok. To continue to distribute. That is interesting. And are you seeing with covid19 still in pandemic mode, are you able to operate normally, or have you had to experience higher costs to protect your staff and your business . I think we can say that we are very proud of the fact that we have kept our 700al network of more than operating. Airports have been operating. Our warehouses have been doing business, as have others. So we have been able to serve our customers. The issues you see with Global Supply chains for our customers have not really been related to being able to transport goods. It has been much more related to Single Source reliability and stocks. Anna soren, good to see you. Of maersk. Flash. Et a bloomberg colleges and universities asked to divest from chinese holdings, being warned that regulations could see some companies delisted entirely. According to a bloomberg investigation, College Endowments have billions. Goldman sachs has signed a deal to finalize the amdb settlement, with an agreement in principle in july, but the pact does not resolve a probe by the u. S. Justice department. 1mdb is the center in the center of investigations of money laundering. And Brigade Capital said it would not return money after the Bank Accidentally transferred more than 900 million. Brigade says it does not have the money and says the payments were to to about 40 funds that use brigade as their investments or collateral manager. And that is your Bloomberg Business flash. Talking about trading, we will continue that conversation but from a different angle. Trade talks canceled. Krupp says he does not want to talk to china right now and says he was the one who canceled. Is the phase one in peril . More on that. This is bloomberg. Welcome back to the Bloomberg European open on bloomberg tv, and in the region, futures may be to the upside, not much, but lets get a look at some of the events that are happening today, things you should be aware of. At 10 00 this morning london time, we will get the final cpi reading for the euro area. We had the u. K. Number that showed pent up demand apparently for services, including haircuts, by reading some of the details. Get more on the pound action, but we also get that eurozone cpi number, as i mentioned. Then at 11 00 a. M. , by videoconference, a discussion on sanctions on belarus. At 3 00 p. M. , reviewing strategies for compliance when it comes to oil supplies, opec. Decide to comply . That seems to be one of the references. And later today, the National Economic club will host a conversation with the richmond fed president on the economic outlook, with thomas barkan. President donald trump says he caught off the trade talks with china last weekend, throwing the future of any agreement into question. If the due collapses, it risks a return of the tariff war, which hurt trade and companies around the world. President trump i postponed talks with china. You know why . I do not want to deal with them now. With what they did to the world, i do not want to talk to china right now. Ok . House Speaker Nancy Pelosi suggested democrats might be willing to make more cuts to their stimulus proposal in order to seal a deal with republicans and speed up covid19 relief. The white house now seems to be looking at a pared down package of around 500 million. For more on this, we are joined by our bloomberg senior editor, jodi schneider. Think you very much for talking to us about this. So what are the implications of President Trump saying he has called off the talks and we were supposed to get these regular sixmonth reviews, werent we . I yes, and it is symbolic, but not a surprise with the rising tensions daily between the u. S. And china, but the talks were one part of normalcy, that there was still one trade agreement. This phase one trade deal came into effect and was negotiated before the coronavirus pandemic, but it really was the last kind of bright spot in the relationship, as charles freeman, the Senior Vice President for the chamber of commerce, taught us earlier. And it really was a way to at least keep some conversation going, and they were supposed to have these check ins every six months, but now they are not having these check ins, there is very little normal communication between diplomats in the u. S. And china, and that could be an implication that could have some farreaching effect on the relationship as we go forward. Now, that could change. President trump is very material about this. As we saw in the tariff situation, one moment, he was imposing tariffs, and the next moment, he was having a coolingoff period and was willing to have trade talks, and then he was not. This may change. Obviously, this is election season, and President Trump is using his tough talk as part of his campaign strategy, so it is unlikely we will see any talks anytime soon. It seems to be straight out of the playbook, doesnt it . On stimulus, are we any closer to a deal there . Earlier this week, we were hearing nancy pelosi and the democrats saying about an effort to meet halfway, and about the strategy and timing that they are asking for . Basically, the Trump Administration says it sees a possibility for democrats and republicans to agree on a smaller round of pandemic relief, around 500 billion, that would be an accord on issues, including the Postal Service, more money for businesses to keep workers employed, but they really remain very far apart on state and local governments and the stimulus checks. Nancy pelosi and Chuck Schumer said they would be willing to two their proposal to trillion dollars, as much as 2. 5 trillion, and the 3. 5 trillion dollars was half in may. But now, the problem is the senate is not in session, and we do not know when the senate would be coming back into session. The house will be coming back into session this saturday to vote on the 25 billion dollars in aid for the Postal Service, but they have to negotiate and pass the exact same bill, so it could be weeks or even months before this is done. Anna yes, asking how long it could take to get a deal through, and i suppose we have to wait until after the election, and then there is a whole other set of unknowns there, in terms of the makeup of the two houses, and therefore, how long it takes to get any kind of stimulus. Di that is right, nancy pelosi select stated earlier this week that they could come up with a deal that is closer to the republican number and then come back after the november election with additional agenda items, assuming, of course, that the democrats do well and that they would be in a position to negotiate, but, of course, that may not be the case. It depends on a lot of factors here what they get and what number they get close to. In the meantime, there is a lot of people in the u. S. Who are hurting, who need those checks, and businesses who need that money to keep their businesses open, given how slow traffic is for many restaurants and retailers. This is a realworld kind of issue for many people in the United States, and it could play out in the election also. It could play into how people vote. Our thanks for joining us, Senior International editor, jodi schneider, with the latest on the political scene. Thats get a bloomberg first word up to, and we start with the u. S. Postal service. The u. S. Is suspending changes to the Postal Service after concern about the slow delivery of ballots ahead of the november election. Democrats have accused President Trump of hampering mail in votes, and the postmaster is shelving the changes to avoid any appearance of impact on the election. New financeamed a minister. It gives one of Prime Minister Justin Trudeaus top aides overseeing the economic recovery, one of his go to ministers on some of the main issues, including renegotiating the north american freetrade pact. Woman tos the first hold that position. In belarus, lukashenko has put alert. Itary on it is an escalation of tension as he faces mass protests in the toughest challenge yet who is 26year rule as there is a special summit to discuss the situation in belarus. European leaders may assign new sanctions. Crisis hasal escalated in an area where the president was detained by the military. In a broadcast on state television, he said he had no choice but to comply after weeks of protests that alleged approach corruption. Others have announced sanctions. Global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. 10 minutes or so to go for the start of European Equity trade, and the stocks we are watching next, including the German Energy giant, rwe, raising a significant amount of capital to back it into renewables. More on that. This is bloomberg. Anna welcome back to the European Market open. Equity markets in the United States hitting an alltime new high. And with the European Markets when we open up in about eight minutes time, futures fairly mixed, and the cac 40 futures a little lower. Lets get our stocks to watch. We are joined by dani burger. Lets start with another business coming to the market, asking for some shareholder money, wanting to invest in renewables, rwe. Several come seen to the market, but they are said to raise 2. 5 billion, and that is to expand and work on their Renewable Energy prodded, about 10 of their market value, perhaps the biggest spot value in europe so far this year. It will likely dilute shares, most likely dilute shares, so we are seeing rwe down about three but some say this should ultimately be taken positively by the market. Anna i was talking just a couple of days ago about the relationship amazon has with the market in the u. K. , and here we have this around morrison. What is the story . New patch starting today with morrisons, in the u. K. , and you can now order same day groceries from morrisons via amazon. 40 pounds, you will get it for free if you are a prime member. The hope is they can expand throughout the rest of the country in coming weeks, and it starts today. This is really a way for those whoto help cannot go into the store and who can now order it by amazon. Anna and what about the movement on the dax . We have been following the travails of wirecard, and what are we expecting to hear later . Dani today, we get the announcement on who the successor of wirecard will be. There has been some speculation, but for now, the frontrunner seems to be livery hero, so there could be volatility around those shares as investors decide to either rice it into the index, which, of course, would give it a lot of passive money if it does not get into the dax, and there is question as to whether that makes sense. They did hit a record high, but in terms of profitability, it is not as reliable as some other members on the dax, but we will find out today whether it is delivery hero or perhaps a surprise company. Eye onk, we will keep an that. Dani burger with your stocks to watch. And another one, suggesting we could see and move upwards in maersk, and we have got maersk coming through this morning. They have reinstated the guidance that they had withdrawn some months ago, so Many Companies withdrawing guidance, but this was a punchy upgrade that we got from them, an interesting conversation i had from the ceo, saying buybacks are still a conversation, and they will look at that in the fourth quarter. Coming up, the market open as we bring to the start of the European Equity day. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Anna we are a minute away from the open of cash equities sessions this wednesday morning. Ceiling a deal. House Speaker Nancy Pelosi suggest democrats might be willing to compromise on a stimulus plan. President donald trump says it was him that canceled last weeks trade talks with china. No let up in germany. Angela merkel leaks out further loosening of virus measures after the biggest spike of cases in nearly four months. As asian stocks trade mixed following a fresh record on wall street, but the dollar slides on signs that the size of the next round of u. S. Stimulus may smaller than expected. European futures point to a positive open. Looking back to the program, everybody. Just a few seconds to go until we get those European Equity markets opening. Futures have been suggesting we will be a little stronger, but not by much. Futures suggesting a bit of weakness, ftse futures higher, dax futures a little bit weaker. We will see where we end up. You are just down by 0. 1 . The ibex over in spain also down by around 0. 1 . We have a couple of markets opening to the downside. We have a real focus on inflation today. We had numbers out from the u. K. A little bit earlier. Cpi inflation coming in higher than anticipated. We will get the european numbers a little bit later on as well. We have numbers coming through , up bymollermaersk 6. 6 as the company reinstated its guidance and actually issued better guidance than it had previously had. That perhaps being seen as a real positive for these markets. We are in a bit of sort of august lull in terms of the earnings season. That is after cpi data in the u. K. Showed inflation rising faster than expected and signs that the u. S. Might pursue a normal narrower stimulus bill fueling a rally in the pound. We are joined now by jane foley, head of fx strategy at rabobank. Let me start with some of the scenes around europe that may or may not be moving risk assets at the moment. One of those is around the underlying virus. We have seen the measures being taken in greece, spain, and italy to clampdown just a little once again on movement. Are you concerned that we are back in two even localized lockdowns later on in the year, what will that do to the euro, if that becomes the narrative . Jane the euro could be vulnerable to this. The measures are seen as quite pragmatic. We have not really entered into the beginning of the flu season yet. Of course, that will happen as we get into colder weather. I think one of the risks for the euro is the state or the size of the Recovery Fund. We know that this is a big political step forward for europe. Can,esnt show that europe that european leaders can come together. They can compromise, they can put something together. That is a big political step. But there is the possibility that if lockdowns are more protracted, are more extended, that this Recovery Fund could prove to be just a little bit small. That could be a political hurdle. From the frugal fours point of view, there is no more room for compromise to make that bigger. Perhaps we have not heard the end of the story about the Recovery Fund just yet. Anna thats interesting and also puts the focus back on some of those sanctions on europe that are looking to pull europe apart. Do think that becomes a theme if we see the funding limit being tested in this european Recovery Fund . Jane i dont think that we can really cast this aside. Since may, the markets have been very optimistic about the euro. I do fear that perhaps too much optimism is priced in. Not only did we have that new party in italy, i think it was founded on july 23, just a bit after the Recovery Fund. Polls suggest, particularly in italy, that antieu sentiment is there. If brexit were to prove a success five years on, then actually we could have more people in italy hammering for something similar. We are going to see rises in unemployment. We are going to see economic hardship. That often means that politically, there are just pressures for some thing new, some changes. That means that the euros pressures could return at some point. Anna the euros pressures could return. Thats interesting. But i am looking at data suggesting that Asset Managers have never been more bullish about the euro. That makes you nervous for the path forward for the euro, whether it can continue this strength . Jane yes, exactly. I do say that the euros fundamentals have improved certainly on the ecbs policies are part of that as well. I do worry that the optimism has gone a little bit too far. We have considerable concerns about the economies. Germany exports to china could be another point of potential weakness if china there are various different concerns around the euro zone, which over the last few months has been totally overlooked. It just worries me that the optimism about the euro has perhaps become a little overextended. Anna yes. Is a strong euro one of those worries, jane . I was talking to nick nelson of ubs early on. He said a tender 10 depreciation in the euro versus the dollar produces a hit to profit. We have seen a 10 depreciation. I spoke to one analyst yesterday who suggested that the ecb is not going to worry about the strength of the euro unless it 1. 30. How concerned should we be about dollar weakness and euro strength . Will the pace of the move have raised a few eyebrows in europe. Treasuryl bank or no department is comfortable with movements of this extent. It makes it very difficult for them to forecast and anticipate how prices are going to move over the next 12 months or any timeframe indeed. So the pace of the move will have made a lot of people uncomfortable. If you look at various models of a fair value, the euro certainly is not that stretched. But in an environment where many economists are suggesting that inflation pressures could be quite weak, where it will be difficult for firms to pass on prices, higher prices coming through the supply chain or wherever else on wages or pressures unemployment, nobody really wants a stronger currency. In this sort of environment, a weaker currency would be more useful. So there will be some pressures for some firms certainly. Policymakers were not particularly be welcoming of this move either. Anna talking about recent currency strength, jane, that takes us onto the pound. The pound against the dollar, 1. 3244, giving up its shortlived spike on the cpi data it got in the last hour. It was much higher than expected, that cpi number. Pentup demand seems to be part of the story. How do you expect that to drive into the pound . How do you expect the pound to trade this year . Jane it was a surprise to see that higher cpi data. I think the breakdown i know it is somewhat surprising that food prices are lower. We know more people are spending money on food more money on food, or have been this year. People are spending a lot more money on their homes. There has been some supply chain issues with respect to furniture and home where issues. That is something homeware issues. Most economists do think that inflation is more likely to trend lower, that we will more likely have disinflation than hyperinflation over the next couple of years. With the pound, i think it is not really going to be inflation that is the big trigger, it is these brexit talks. Last night, we saw these again breaking down, this time over truckers rights. I think over the months ahead, if we dont get a deal, if we dont have some sort of compromise on the trade issue between the u. K. And the eu, sterling could be really quite vulnerable. Anna yes, much potential for volatility. Thanks very much. Jane foley from rabobank with us a little bit longer on the program. Coming up, is the dollar still king . The greenback slides on the suggestions that the next round of u. S. Stimulus will be smaller than originally thought. We have seen the dollar fairly flat this hour. We will discuss that next. This is bloomberg. Anna welcome back to Bloomberg Markets european open this wednesday morning 11 minutes into a trading session that is flat to negative. Lets get a Bloomberg Business flash. Some of the top corporate stories we are covering. Maersk has raised its fullyear outlook. The Worlds Largest Container Lines as profits for 2020 will be between 6 billion and 7 billion. Soren skou says that does not include the possibility of a second phase of lockdown. The company was able to stay open for business throughout the crisis but warns uncertainty still remains. Isman utility giant rwe planning to raise up to 2. 1 billion euros in a share sale. The new stock represents 10 of its market value. Depending on the pricing, it could be the biggest offering of these shares in the region this year. Rwe is hoping to use them i to expand its Renewable Energy operations of the money to expand its Renewable Energy operations. Amazon and means it will be more likely to pay the company to handle the shipping for them. That is your Bloomberg Business flash. The dollar is holding at its lowest level in some two years after a fiveday losing streak. That is as President Trump keeps up the tough talk on china, warning u. S. Colleges and their endowment funds to sell shares in chinese companies. Prospects for u. S. Stimulus may also being weighing on sentiment. Jane foley from rabobank is still with us. I am going to give you the Impossible Task of telling me that a definitive driver of weak dollar right now telling me the definitive driver of weak dollar right now. Negative real yields, is that at the heart of it . Is it this push higher we have seen in inflation, very small by historic standards, but still that at to march, is the heart of it . What is the real driver . Jane various factors all coming together. Negative Interest Rates is a part of it. We have had it before. I think this time, because nominal Interest Rates are so low, there is this perception that yields or Interest Rates could be negative or perhaps a more for attracted protracted period. The inflation argument is a really interesting one. Already yesterday, we saw that stronger than cpi index. Economists are not of the view that we are going to see a lot of inflation, because we are expecting to see higher unemployment. We have pressure on wages. We dont think that producers are going to be in a position to push on higher prices. Also, of course, for decades now, we have seen problems in the developed world that push wages higher. That is the economist point of view. Many people are taking a different stance. For at gold price, instance, that is linked to negative real Interest Rates in the u. S. We think expectations that we could see asset Price Inflation push higher, in the way that we did after the qe was initially used in the u. S. During the Global Financial crisis. So a really broad debate about inflation over the next few years. That certainly is part of the factors impacting the dollar. But a democratic president , potentially another pressure on the u. S. Gross outlook. It tends to bring more regulation and higher taxes. A big variety of reasons, but i think right now, we have a lot of momentum behind this dollar weakness. Come september, i think we could have a correction for some of the losses that we have seen. Anna it is interesting, isnt it . Taking all that you have said and then asking the question whether the dollar is still behaving, it certainly was during march. Every time you raised doubts about the dollar as a haven, it proved to be one once again. I am mindful of that. I was reading stephen roachs peace talking about a 35 drop in the dollar versus a basket of countries that the u. S. Trades with. That was his expectation, 35 drop. He was talking about how the savings in the u. S. And the current account current accounts problem would eventually undermine the dollar. Is that something that in the end undermines the dollar as a haven or no . Do we not get there . Jane you know what . I do not think that we do get there. If we do get to a scenario like that, it could be several decades out. The u. S. Dollar is still the dominant currency of the Global Payments system. Although there have been attempts by china to alter this, even the eu has tried to put some momentum in place to alter this, it is going to take a very long time to change this. People need dollars to finance their debt. Dollar denominated debt has been growing since the Global Financial crisis. Dollar are the big currency for transactions. Shere is a research by the biis published in december that suggest that the currency invoices are issued in is a real significant factor on which Currencies Central Banks have in their reserve. I think the dollar will remain a safe haven, irrespective of its current account and budget position, for some decades. This is a function of the characteristics of the dollar, its use in transactions, its liquidity, more than the u. S. Economy. Anna i remembered being recently quite surprised that the number of chinese businesses , rather, the scale of the use of the dollar in trade by chinese businesses regardless of the fact that the Chinese Government wants to push the yuan as the trading currency. Let me ask you about what you foresee for the dollar. So it would take decades for that kind of scenario to do about, that i put to you there to develop, that i put to you there. Americans do seem to be preparing for a weaker dollar. If you look at what Warren Buffett doing with gold, or the rate at which americans are now buying housing. Some are suggesting that this was all about preserving wealth. Do you see some of those signs . Jane i think if you are worried about inflation, then that would be the move to go. Gold is traditionally a hedge against inflation. Many people are concerned about that we dideristic see after the Global Financial crisis. We saw a lot of money being pushed into intrinsic assets, not just housing, but classic cars. Instance. , for all these assets really did push higher and this, of course, related to very cheap money. Are the Interest Rates negative, there is the possibility that we get another boost to these as a prices. Given what we saw after the Global Financial crisis, there certainly is a risk. Anna thanks so much. Thanks for joining us. Jane foley, had of fx strategy at rabobank, joining us this morning. Oil eases from a fivemonth high ahead of todays opecplus meeting. We will discuss the oil price and whether those members of opec and opecplus that have not been complying with their targets, whether they will be made to comply. That is next. This is bloomberg. Welcome back to Bloomberg Markets european open. 22 minutes into one states session, down 0. 25 on the stoxx 600. Travel and leisure stocks actually outperformed today. Some of the u. K. Listed Airlines Trading higher, perhaps around airport. Bility of the oil prices have eased from a fivemonth high after a report signaled u. S. Gasoline stocks are surging. It comes ahead of a meeting of opec and its allies to assess its supply agreement. Joining us for more is annmarie hordern. Good morning. What is going to be on the agenda for opec and friends . Annmarie good morning. I think it is very clear this mind that top of the agenda is going to be compensation, bringing those cheaters on board. And this really comes very clear from the kingdom. Saudi arabias king has called nigerias president this morning and they discussed the importance of compliance. The saudis are making it very clear that they will not tolerate cheaters for very long. This has been the agenda really for russia and saudi arabia since they were really bearing the burden of these cuts. It is not just complying with the cuts that you have to do exactly right now for this month. They want them to atone for their past sins, so making up compensation cuts for the past once they have missed. For nigeria, they are lobbying to count one of their oils as a condensate instead of a crude. That might help them bring into line. Iraq has been doing better in terms of compensation. They have implemented about 80 . For the iraqis, it has been probably the best we have ever seen. Compensation may be just a bridge too far. This is a country that is still dealing with a very dire economic outlook. They are still dealing with the effects of war and sanctions. For the iraqis, it may be a bit harder, but it is clear that compensation and getting cheaters in line is top of the minds of the kingdom, as well as for moscow. Anna so top of the agenda is going to be whether those who have not been playing ball will decide to do so. Thats the supplyside. What about the demand outlook for oil . Annmarie exactly. And the reason why we are seeing this massive push on the compensation site is because demand is looking relatively shaky. Weekard from the iea last and they dropped their second half outlook due to the depressed air travel. Yesterday, we saw what you mentioned earlier, that u. S. Report of surging gasoline gasoline stockpiles. They need to remain vigilant if they want to be able to have control on this market. At any point, you could have a demand pull back. Its going to be eight balancing act. That is why we are seeing this maximum Pressure Campaign for every country to make sure they have compliance 100 . Anna ok. Thank you very much. Annmarie hordern with the latest on the oil story. We are a little bit weaker for oil prices. The brent price, 45 per barrel. Wti, 42. 54. Lets take a look at some of the stocks on the move today. The biggestcus, loser on the stoxx 600 after the german utility giant priced its share sale at 32 euros 55. It wants to invest in renewables, of course. Maersk, in the shipping space, climbing. That stock really climbing after they raised its fullyear outlook. It is a positive story to the markets and the stock is up by 5. 5 . The biggest gaine on the stoxx 600r. It has raised its forecast for the year. Belarus sends troops to the eu border in a drastic escalation ahead of a Leaders Summit today. What is the latest thinking on this move on the general approach to belarus in europe, in brussels, in frankfurt, in berlin, and in paris . We will get the details on that next. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . 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. Anna welcome back. This is Bloomberg Markets european open. European equity markets have been weaker, but not by much for the first half hour of the trading session, though down by 0. 1 or so on these major markets. The dax and cac just into positive territory. Interesting sector breakdown. We have got basic resources, utilities, oil and gas, i am reading about how Energy Stocks are trading weaker as a result of some of the latest stockpile data ahead of the opec meeting. To the upside, travel and leisure is interesting. Some of the u. K. Travel and leisure stocks doing quite well. We have had some News Headlines overnight and this morning to surrounding whether the u. K. Government is going to be able to make testing at airports a factor in their policy. That is having perhaps a bit of impact on some of these aviation stocks. We certainly see some of them outperforming today. We see the likes of ryanair making very modest gains. British airways and iberia up by 4 . Thats a quick look at where we are in the sectors. A mixed picture for the sector breakdown for european stocks. Lets get a bloomberg first word news update. In theof compromise stimulus deadlock on capitol hill. House Speaker Nancy Pelosi says the democrats may be willing to make a cuts to the rescue package to seal a deal with republicans. She wants to come back after the election with more items on the agenda. The white house sees the possibility of a pared down package of around 500 billion. Canada has named Chrystia Freeland as its new finance minister. It gives one of Prime Minister Justin Trudeaus top aides the job of overseeing the nations economic recovery. She has been one of trudeaus go to ministers for some of the governmentss main issues, including renegotiating the north american freetrade pact. Freeland is the first woman to hold this new position. The political crisis in mali has escalated. The president has resigned after being detained by the military. In a broadcast on state television, he says he felt he had no choice but to comply. It comes after weeks of protests that allege corruption and nepotism within the government. Malis neighbors have condemned the move, announcing sanctions. Hong kong is clearing up after its most powerful storm so far this year. The typhoon disrupted business and travel and forced of the cancellation of morningstar trading in hong kong. It caused little damage. Hong kong has now lowered its warning signal as the typhoon is moving away from the city and trading restarted in the afternoon session. Global news 24 hours a day, onair and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Back to geopolitics. The belarusian president is facing his biggest challenge in his 26 year rule, as strikes and protests continue against his leadership. Alexander lukashenko has deployed to the army to the countrys borders within the eu, drastically raising the stakes ahead of a plan summit between the blocs leaders. This as russian leader Vladimir Putin discussed of crisis with chancellor Angela Merkel and president emmanuel macron. He told merkel of the unacceptability of any attempts at external interference. Joining us now is our european politics reporter in brussels. This has taken an unexpected turn, perhaps, with the positioning of these troops. What will eu leaders hope to achieve during their meeting today . I think Foreign Ministers discussed this last week, didnt they . Yes, the Foreign Ministers decided basically to start the process for imposing sanctions. But i think leaders really realized that this was too serious to leave just to the Foreign Ministers. They want to show some symbolism , europe does not go to sleep, europe does not go on holiday during all this. This is an important topic that needs fair discussion. However, they are in a tricky situation. They cannot really do all that much. Ther influence their influence really is really quite limited. They will come out with some very strong statements condemning the antidemocratic crackdown we have seen on the streets of belarus, but really, there is not a lot more than that that they can do at this stage. Border with the eu and brothers. This is very in belarus. This is very much on the doorstep of the eu. There is little political influence for historical reasons that they can bring to bear. What are the risks for the eu . Think they think that the risk is that they dont want to be seen to be interfering in a foreign democracy. And i think they are worried that if they make it look like they are asking the people of belarus to choose between either europe or russia, then thats not going to go down very well. That will be seen as kind of like, you know, the foreign, the europeans plotting against russia in something that the kremlin sees as its backyard. They are really going to play this gently, play it down. They are going to try to somehow open a dialogue with the current regime, with the opposition to see if there is anyway that perhaps there could be some kind of peaceful transition to a new government. I think that is the way they are going to play it today. Anna what about the sanctions story then . Is that something that may be seen well, if they do sanctions, they will be careful of not going too far, not overstepping the mark. Sanctions is the one weapon that they have got. Up until a few years ago, there were already sanctions on belarus. They lifted those a couple of years ago in order to try to create the environment where they could talk to the leadership. As you say, the Foreign Ministers have decided to put some sanctions back. I think what will be the topic of discussion over the next week or two will be how far to go. How much do they want to keep , wer powder dry and say dont want to do it yet, we want to see what happens . They know that ultimately, they can sanction officials very close to the government in belarus. That will also send a signal to the kremlin as well. And i think there is a threeway conversation going on here. Anna thanks very much for bringing us the brussels nuance. In brussels, thank you for the update. The Democratic Party officially announces joe bidens nomination as president ial candidate. We will hear from the dnc event and a deep dive into bidens green policy next. This is bloomberg. Whof you want a president defends spending hours a day watching tv and zapping people on social media, hes your man. It works great if youre trying a rowertain or but in process, it collapses like a house of cards. Donald trump inherited a growing economy and a more peaceful world. Like Everything Else he inherited it, he bankrupted it. When this president goes overseas, it is a blooper real. He breaks up with our allies and rights love letters to dictators. America deserves a president who is looked up to, not laughed at. Joe biden will be a president we will all be proud to salute. With joe biden in the white house, you will never doubt that he will stand with our friends and stand up to our adversaries, never the other way around. Anna president bill clinton there alongside two former secretaries of state endorsing joe biden. This is democrats officially nominated biden as their candidate for president at the Democratic National committee. Now lets hone in on some of the specifics of his campaign. Plan aims toreen spend 3 trillion to help the United States economy get out of the pandemic era recession. And promises an overhaul of the American Energy system that will put Climate Change at the heart. The ambitious plan sets a goal of a carbon free electric grid by 2035. We have a couple of voices to comment on climate matters. Lets get to bloombergs green reporter, who is with us now. Good morning to you. Adens climate plan as candidate is quite different from his plan during the primary. So what has he been changing . I am not entirely sure if he can hear me, so we will leave that conversation. Lucky we have a couple of voices lined up to talk about the green agenda and the esg agenda this morning. Turning from those Political Climate plans to changes pledged by businesses and today marks one year since the Business Roundtables statement dumping its advocacy of shareholder privacy, which it had previously had, in favor of stakeholder support, specifically with the focus on esg. Lets bring into the conversation and discuss this chuka umunna, executive director and ahead of the esg at edelman, and former u. K. Shadow business secretary. Great to have you in the on the program in your new role for a new conversation. Let me ask you if anything has changed. One year on since the Business Roundtable made these pages pledges taking into account the wider view of stakeholders, has anything really changed amongst the signatories to that . Chuka i think it has, actually. Good to be back on bloomberg. Were they right and what they said in what they said . Of theirember, part rationale for this was that if you dont take into account the interest of shareholders, of stakeholders, sorry, it will ultimately negatively impact on shareholders. If you look at what has happened in the last 12 months, you had esg funds outperforming the wider stock market during the covid19 selloff. Have actually had more come out showing that the majority of sustainable funds have been traditional funds. We have seen greater and greater capital chasing esg investments. We have had a massive increase ,n sustainable bond volumes social bond issuance has rocketed to more than double the total amount raised in 2019 already now in 2020. There is strong evidence that corporates with a good esg profile proved much more resilient in the face of covid. All that data indicates to us at what the Business Roundtable signatory said. Ppe, investing ,illions to support communities on that measure, you have seen businesses more roundtable signatories, three times more likely to give paid time off, for example, than the general average. Measures, there has been Research Done on this. We still have a long way to go. The research that we have showsd out at edelman that if companies are true to these stakeholder values, the public and customers will punish you, they wont buy from you. Anna you mentioned to some of the progress that has been made and there is still a long way to go. A couple of my colleagues were a piece recently that identified some of the members of this group who signed this pledge who dont pay living wage. This is mostly u. S. Based research, but who arent paying a living wage. This wont be true for all these businesses, of course. Is closing the gap between ceo pay and the pay of the broader employee base, is that something that will take these businesses closer to these esg goals . Will i think ceo pay continue to be a controversial issue. There is absolutely no doubt about that. I think the key will be the overall level of wages amongst of the workforce in a business, relative to revenue and profit. I think that is always going to be looked at going forward. Haveurse, during covid, we had a huge resurgence of equality,n issues of particularly following the tragic death of george floyd. Again, the research that we have carried out has shown that more than 60 of americans are saying that they will either make buying or boycotting buying decisions based partly on the record of a company on these kinds of issues of social justice. And so, if you dont do these things and the public perceives take ceo pay, if that becomes a controversy, it is not good for your reputation. You will see citizen customers acting with their wallets and simply not buying products from you anymore. In the u. K. , a good example of an esg controversy that there has been has been boohoo, which is one of our fast fashion chains. Before they had the ceo controversy, they were twice the size and market capitalization. Esg controversy surrounding the treatment of workers in its supply chain, it lost more than a third of its market capitalization. You could say arguably that was investors acting with their feet. Increasingly, you are seeing these esg issues having a huge impact on the bottom line of your market capitalization. Anna and so is that influencing whether shareholders pushback against this broadening of corporate interests . As companies try to take into account the interests of all the areeholders, shareholders pushing back or saying in a longterm view, our interests align with this broader view of stakeholder interests . Chuka i actually think it is more the latter than the former. A companys ability to integrate these factors into decisionmaking is seen by investors as a proxy for prudent management. Surveyn Investor Trust in terms of what investors, money managers, Portfolio Managers are thinking. That is the emerging consensus view. If you are not taking account of these issues properly, then in the end, the bottom line will be , shareholder value will be hit. I think we have seen a seachange coming out of this crisis, which has brought even more focus on esg issues relative to when we came out of the Global Financial crash. I think it is fair to say, for example, in the Financial Services sector, a lot of people went back to business as usual. They thought they could just pretend it had not happened. I think coming out of this crisis, it is quite clear that business is much more sensitive to its role in society and how it is perceived by citizen customers. Which is why if you look here in the u. K. , corporates have been quite careful as to whether they take advantage of state support through this pandemic. They know that if they take advantage of state support and 12 months down the line, there is a Big Conversation package announced for the ceo, all they want or they want to do a buyback, that is going to be extremely controversial. Anna ok. Thanks very much for joining us. Chuka umunna, head of esg consultancy at edelman, an former shadow business secretary in the u. K. Thank you for bringing us your thoughts on the oneyear anniversary of that Business Roundtable event. Lets get back to the u. S. Looking at the democrats climate plants. Joining us plans. Joining us for more detail, bloombergs green reporter. Bidens climate plan is different from what he was talking about in the past during the primary. What changed . Its a very smart move. Biden recognized that within the primaries, there was a very large progressive arm. Many candidates were much more aggressive on climate. When he became the presumptive nominee, he reached out to the progressive arm, he reached out to Bernie Sanders and created this committee to figure out what could be the compromises that he can make on his plan that would bring along enbridge this divide that has existed within the democrats. He will need the entire base if he is to put a strong showing against trump. There is also the chance that some republicans, perhaps those center,closer to the may change their mind and vote against trump this time. He is also playing to that base. Carbonidens promising a free electric grid by 2035. How realistic is that in the u. S. . It is really ambitious. There is no large economy that has set a carbon free target for 2035 or sooner. Doing this is going to be a real challenge. But in a recent report from the university of california berkeley showed that using todays technologies, the u. S. Could get to 90 carbon free by 2035 without money difficulties. It is really the last many difficulties. It is really the last 10 that becomes more complicated. We will have to integrate todays technologies much better if we were to cut the last 10 . Anna thanks very much for bringing us this story. The stubborn last 10 difficult to budge then. Coming up on the program, we will bring you the stocks on the move this morning. This is bloomberg. Welcome back to Bloomberg Markets european open nearly day. Ur into the trading 55 minutes have gone by and we have not moved all that far on European Equity markets. We are up now by 0. 3 . Lets get into some of the individual movers. Rwe is the biggest loser on the stoxx 600 after they priced their share sale at 32. 55. It wants to invest in renewables. This the climbing, shipping business, after the Worlds Largest container line raised its fullyear outlook. They were able to reinstate the guidance that they had previously withdrawn. Unibrew the biggest gainer on oxx 600, shares up by 9. 6 . Galapagos falling after the sda does not approve an arthritis drug. That may also affect a partner on the drug, gilead. Lets check out some currency moves for you because we have talked a lot about the weakness in the dollar over the last five days or so. The dollar is pretty flat right now. A little bit of upside bias to the pound. The euro around 1. 19. We had some Inflation Numbers out from the u. K. Earlier on this morning which showed those had come in a little stronger than expected. We are soon to get Inflation Numbers from the euro zone as well. Surveillance is next. This is bloomberg. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. The s p and nasdaq powered to a record close. Nancyacy hint pelosi hints that the democrats could compromise on a deal to get more stimulus. President trump ramps up the antichina rhetoric, saying he called off trade talks with beijing. And easing is on hold, Angela Merkel rules out further loosening on virus measures, after