Lufthansa looks to take off. Efrp eu regulators approve the plan bayer stock gets a boost after the german drug giant settled hundreds of claims around the weed killer roundup ending years of disputes it was a grim day on wall street losses more than 2 suggesting we will extend these losses after america recorded nearly 35,000 new covid19 cases in one day. The highest level since the number peaked in late april. California and florida both logged a record rise in daily cases. Disney has postponed the reopening of the park in california originally scheduled for july the delay comes as disney workers in florida urged local authorities to reconsider plans to open the orlando site due to a recent spike in cases. The company welcomed visitors to hong kong. Apple has shut a number of stores in texas due to the spike in the cases now temporarily closing seven houston area locations following similar moves in arizona, florida and north and South Carolina new york, new jersey, and connecticut imposed a 14day quarantine for those traveling from other states. New york governor outlined details. The infection rate formula will be 10 per 100,000 on a sevenday rolling average or 10 of the total population positive on a sevenday rolling average the latest news for travel and leisure not good news. We have seen stocks already suffering year to date losses. Just a damage to confidence we have witnessed as many had hoped we would get back to some form of normal in the skies whether masks, social distance and middle seats left open but with the demand not just Business Travel but many Leisure Travel hoping return to some form of Summer Travel ryan a air, easy jet the United States in session with high singledig ill losses across the board from delta, United Airlines and spirit lets get into those falls on easy jet which raised 419 Million Pounds in the new Stock Offering as the Budget Airline looks to increase cash flow. At a price of703 pence per share adding that it received strong support after the carrier reported a wider first half pretense of 753 Million Pounds and could not give guidance for the rest of the year lufthansa ahead of todays emergency meeting. The carriers biggest share holder to endorse the governments nearly 9 million rescue package where do we stand now, annette actually, thats at least the line one could say is that the job in government and lufthansa were winning the case against the billionaire investor he is the owner of what some might know he has reportedly in that range of 50 euro. He was threatening to veto the rescue package at that extra ordinary meeting starting today at 12 00 cet now he backtracked yesterday, he was saying that hes going to okay the plan despite his concerns that it is not a good idea that government has a 20 stake. So this is like out of the way for lufthansa. At the same time, the European Commission now at 9 30 today was saying that they are approving lufthansa 6 billion recap tallization. Confirming the stake to go out over lufthansas ownership in the next six years if thats not achievable, they have to come up with the Restructuring Plan in the short term to medium term the fate of lufthansa secured. They really need the money they are burning cash. Some 1 million euro that is not Getting Better the Holiday Season is approaching. There is so much cancellations and reimbursement, this is like a lifethreatening situation on another positive side, the trade unions are contributing to the rescue package quite tremendously with the Cabin Crew Union and contributing some 750 million to the plan and the pilot union is doing its best to keep the airline afloat. With that, back to you annette, ill walk you through some of the Market Action we are witnessing we are trading lower but only modestly so. We are trying to put some of the weaker ranges. Weve started the trading day behind us and with the selling across the markets, we are down 2. 7 individual markets suffered even steeper losses the dax was down 3. 4 . The market still eyeing the risk around new infections. We are seeing problems across the United States and germany and still keeping an eye on some of the positives we had good new on the individual cases bayer and the roundup cases have been a cast lift the ibex in spain also popping green. Pretty big transition. Other markets still trading down close to half a percent. We are still talking about a lot of volatility. We had climbed a long way over the course of the last couple of sessions or quarter. The gain down 11 on the benchmark. The markets evenly split now it has been volatile look at the shopping it has been at the top, and at the bottom we rallied at the top. Real Estate Health care seeing the april tide, technology seeing that move south this looks like a little bit of end of month and quarter positioning. The chief Market Strategist to Barclays Private bank can i ask you about some of the volatility we have witnessed do you think this is how far weve moved from the markets in the quarter on the recovery trade . Good morning. It is probably two factors first, the worries around covid19 and the quarter this could have been considering how close we are to the end of that quarter i dont think weve seen any meaningful change in the pandemic the worries are already there. The second wave, weve seen some in china and the u. S the end of the quarter might have been a bit of a catalyst for people to reassess we had poured a dose on the quarter suggesting an even deeper contraction with the second wave of infection whac t what do you think it means you sound some what cautious the market is of the view that this is right the number is not going to be that relevant this year considering you had a lot of support from Central Banks and the sector that had been the most effective the fact is very much forward looking. The key is really next year and the shape of the recovery. You should look at the consensus earnings in the u. S. , it is forecasted back to the level before the crisis and if you have a second wave i think you have a question mark on the earnings. This is why the market is getting a bit of a jitter at the moment the expectations and how to price next year and 2022 gerald, i want to take that thought further. Functioning well as a discounting mechanism. A lot of investors now looking for where peak panic will be and peak concern do you think well see that yet as we are witnessing the u. S. Numbers as the reality to the u. S. Road to recovery may be bumpier than expected. Have we hit peak pain this time entering the equity space . I think as you just mentioned, it is highly uncertain. No one has a clue what is happening with the second weave. No one knows what is happening with the virus it is really the most uncertain environment for leading memories for investors. In that sense, it is still difficult. It is a good time to be in the equity market. You have to be selective you are seeing some of the trends being more and more unfortunate where some sectors are really suffering you mentioned airlines and travel industry. For some of these theyll be difficult to recover some of the companies are doing very well through the crisis it is probably a catalyst to do more active management rather than passive i think buying the etf will be looking forward to some of the companies to deliver on the business and the quality of the balance sheet. When it comes to being selective and actively managing a portfolio, do you think these Growth Stocks have further to run . Weve seen a lot of money come into the trade since the march lows the question here is have those become more elevated and attractive from a risk reward perspective. It is a question that has been around for a while. Some of the giants, there was always a question that was expected they kept delivering quarter after quarter i think if you think about the business that would not describe higher those are higher when it comes to equity, what really matters is growth it is sentiment and flow in the market and the rebalancing. You have to think is it the right business and does management exclude it and does it have a strong Growth Prospect i think those kind of companies will do well there will be a moment of profit making if you think more like one, two, three years down the line, those will be approaching the benchmark. Some investors also paying attention to the politics. It has been reported that perhaps it is joe biden spooking the market perhaps if there is a blue wave and a roll back of the tax legislation which has been good news for a lot of investors. What do you think . Are we seeing a dose of politics here it could be likely. Our out look for 2020, we said it would be an uncertain year. We werent forecasting for the virus but with the election, brexit those factors always have an impact on the short term it is very, very difficult to have a strong view on what is going to be implemented. If you look at the economy impact of the u. S. President , you have to have full support of the congress and after the election whether it is going to be a split congress or not i think it is very early on the impact of the u. S. Election on equities for the clarification there, how you are thinking about the election, chief strategist Barclays Private bank the conversation continues on line streetsignscbc. Bayer with a stlenetemt in the roundup case well have those details, next to keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. With spray mopping to lock away debris and absorb wet messes, all in one disposable pad. Just vacuum, spray mop, and toss. The shark vacmop, a complete clean all in one pad. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. The imf has slashed its forecast warning the pandemic is causing more damage than originally thought the gdp contracting 4. 9 with an estimated down 3 in april expected to rebound 5. 4 in 2021 imf warned that deficits will grow as stimulus programs used to curb the damage detailing the Global EconomicGrowth Outlook it is hard to make up that big hit. Even for 2021, the numbers for the u. S. Are still below prepandemic numbers that is a big increase for the world. A warn of the dangers caused by a surge the question is of course if we have a second wave. We have looked at the scenario that is a case where Global Growth is going to be pretty much close to zero in 2021, as opposed to 5. 4 we are projecting now stocks looking overvalued equities look ahead. Adding that he expects to see a rebalancing take place he still thinks the u. S. Will see a vshaped return. We are counting down to u. S. Jobless claims another 1 million plus americans applied for benefits in the past week in many sessions, the appetite and turning higher for the other major indices but does suggest minimal red ink where we saw 700 points stripped off to the tune of more than 2. 5 the nasdaq down more than 2 investors pulled back a cross the board. We may see this return to the narrative. Tech is a growth and defense all at once because youve got those revenues that gives it a defensive element. An increase for some of these big tech names on to bayer, 10. 9 billion settlement in roundup cases for the roughly 125,000 claims it inherited in the takeover of monday s monsanto the mediator said the remaining cases will go to trail in the next month this huge settlement is keeping the product from being sold to consumers at this stage. Thats right. There is really no word that the ingredient is causing causer and bayer is not admitting it is si settlement which amounts to 9. 6 billion and setting aside another 1. 25 billion for any future fall out it is positive for Share Holders. It is bringing an era of uncertainty to a close it is a lot of money but still it could have been more. 85,000 for plaintiffs. Merck has paid for settling other cases. That should be good news for the Share Holders. Even though the Share Holders have lost a lot of market value ever since bayer went on to buy monsanto for 63 billion u. S. Dollar, the company lost some 13 billion euro in market capitalization and that is not coming back, at least in the immediate future what happens next is that bayer has to pay roughly 5 billion this year and another 5 billion next year. They are going to fund it from their cash flow and the sale of their Animal Health unit the rest, which is not covered, they are not selling new bonds going from there. If you look back to when this story initially broke, it took investors by surprise and took a while to get on board in the first place. Where do you expect the focus to go now that the overhang has been largely lifted . The ceo of bayer reiterating that purchase of monsanto was a good deal for the Company Going forward they are sticking to the opinion that they are among the most rigorously studied items and will not cause cancer. The change it is going is ending an era of uncertainties. Bayer itself is the restructuring case for the first time they didnt get the vote of trust from the Share Holders the future is uncertain. Who knows when the next person comes, what they are doing next . Thank you well continue this conversation state side tune in for that later in the philippines, Authorities Say that former wirecard coo may be in the country. The scandal that engulfed the payment firm authorities are investigating wirecards missing 1 million euros. Wirecard admitted the money never existed in the first place. Coming up, the United Arab Emirates suggesting more thats coming up shortly music welcome to street signs, these are your headlines european equities rebound despite markets lower after a surge in american cases sees a spike higher than it has not seen since april the imf cuts forecast and warns of the state of public finances it is hard to make up that big hit. Even if you look at two years later. So 2021 for the u. S. Numbers are still below the precrisis levels lufthansa with hopes the biggest investor will approve the bailout package and will approve the recap tallization plan bayer gets a boost after the giant settles thousands of claims paige nearly 11 billion and ending years of disputes we are just keeping you up to speed with developments around wired card this is the german payment firm that has been in part of investigation of 1. 9 million of missing funds. The Management Board of wire card has decided today to file an application for the reporting of insolvency for the opening in munich this is fairly Significant Development in the direction for the company. There has been hope set that it might continue but huge damage around what has transpired with these missing funds. The stock shares have been suspended. The application for the opening of the proceedings are very Significant Development. The stock, you can see has been down in morning trade. Down 12 clearly so many Unanswered Questions about whether the funds existed in the first place, whether they traveled abroad and were housed in Bank Accounts in the fiphilippines. Just to repeat, what we are now hearing, the Management Board has decided to file an application for Insolvency Proceedings for the company. If you think about all the activity bidding up a couple of sessions as investors were speculating lets take a quick look at the market direction we started to pick up appetite. Returning to trade and pressing the sell button. The market still stubbornly in the red. We have to gain more than half a percent. We are up to a similar tune in the french market. Italian stocks are up. Investors are getting back involved in stocks the u. S. Future, there has been a little green moving on to the nasdaq weve seen similar situations where investors are buying stock. Not just the tech names but biotech names in terms of treatment and the health care element. You can see that is still a little bit dented, the april tide we saw waning in session, 700 points stripped off the dow. Losses of 2. 5 for the s p as we suggest a little more data on u. S. Jobless claims. It is significant that the Management Board has decided to file application for Insolvency Proceedings. Annetta has been following this story. That suggests investors are on the hook around wirecard that is a big surprise it comes on the day that they are filing for bankruptcy. That would mean they need time for restructuring. That could mean the company is running out of cash and that they could pay the salary. Social security and they have to legally file for bankruptcy and there is no way around it. It could be another breach of law for wirecard for now, the company is doing some sort of chapter 11 for restructuring soon that does not necessarily mean they are going under but it will most likely mean that under the insolvency law here in germany, the administrator will have a look at who have claims to the company and what can work and actually pay and which part of the company is profitable and can be sold to other companies or is there also a remaining core which could be viable in the longer term. That is under the insolvency administration, which is completely different than before that is only my suspicion for now that they have to apply because basically the constrains meaning they are running out of cash to pay all of their employees, for example back to you. The background of insolvency law there in germany and the implications for wirecard. Lets push on to markets one of the Worlds Largest benchmarks has warned argentina and turkey they could soon be removed from the emerging market index if it becomes hard for investors to access their stocks the head of the emerging and cross asset strategy at bank of america global research. Lets get into trade clearly all of the emerging markets have been different. Different willingness to tackle the virus. What can you say about the risk of investing the broad basket at this stage definitely more cautious. Long term, there are opportunities. Around for the next several months, we are cautious. We think that is still growing and not in the control secondly, we have piled into the emerging market that will last two months on the basis to the hope of recovery and the market going forward. The product stimulus are different from the core market they would need to shore up economy. Doing quantitative easing. It is time for caution this news about argentina and turkey is just an Early Warning that investors could heed more generally looking towards the end. This crisis will mean more of the country will go down the route of more making it harder to invest. That doesnt mean in the long term there are greater opportunities in the end still creating and performing in many parts of asia it is funny because there have been two different jurisdictions around the fall out and a concern about credit rating. With turkey, the country seemed to weather the coronavirus very well with both of those around the same category. I think covid is only one aspect msci is not particularly concerned about covid but Market Action but trading rules where you can short stocks and things like that. In that context with the markets which have screened the loose market and that sort of raises questions about elibility for global indices at the end of the day, they have to make sure their product can be traded by global investors. Otherwise, they wouldnt be doing its job. Covid has been managed relatively well. Turkey has the bias to grow. It can grow. The young population and quite growth focused government. That helps most produce the lasting session this year because of covid that will be better next year than other countries also because turkey is a particularly big beneficiary of Global Oil Prices and low Interest Rates if you look out to the medium term, one of the Big Questions they are asking is whether all of the stimulus thrown into the market compared to the higher legislation down the line. What do you think about merging markets in particular. If you think investors these days can get their head around they do use quantitative easing and for how long i will say for the short term, next 12 months, there is no need to worry the economy needs a boost. In the longer term, if you think about the next few years, there will be at some point higher concern about inflation rates. It will be very hard to stop it. The deficit is so large. South africa announced 14 of gdp. That is very hard to get out of politically. I think well return to what they have long forgotten about the banks are under more pressure inevitably, inflation will go up what im talking about is from the threeyear perspective, markets are some what underappreciated thank you for joining us. We have been keeping you abreast of the proceedings around wirecard just crossing the tape, prosecutors in munich have asked about wirecard insolvency application saying we will look at all possible criminal offenses prosecutors are saying they will look at all possible criminal offenses meaning investigations continue and there may be some proceedings that come at the culmination of those investigations movement around the 1. 9 million euro of missing funds. California with a record rise of daily cases and the wave continues to mount more when we return. If youve had the coronavirus, youve got a lot of fight in you. And youre in a special position to help us fight back. The plasma in your blood can literally save lives. But we need to act fast. Please donate plasma now. Please donate. Donate. Donate. Donate now. You fought for your life. Now lets take the fight to covid19. Go to the fight is in us dot org to find out how to donate. Because the tempurbreeze transfers heat away from your body. So you feel cool. Night after night. During the tempurpedic summer of sleep, save 500 on all tempurbreeze mattresses. During the tempurpedic summer of sleep, we could never do what they do. But what we can do it be a partner that never quits. Verizon is the most Reliable Network in america. Built for interoperability and puts First Responders first, giving their calls priority, 24 7. We do what we do best so they can too. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Some breaking news now from lufthansa. Tracking bailouts. The ryanair chief legal officer says they wont challenge the approved bailout so challenge been thrown down by budget carrier given the intervention that will take place disputing with the government the conditions of the bailout. If there is a huge injection of funds and more aggressive players. The concern of ryanair saying it will challenge these decisions wpp ceo mark reed says facebook needs to address issues biracial equality he has spoken with the social media giant about changes. It is a challenge for facebook weve had robust discussions about steps they need to do to make sure the platform is safe and that it perpetrates Racial Justice and if there are processes, how they take down content and the policy theyve set up globe al alliance for responsible media. Advertising bodies to really look into this issue i think the Current Situation is putting pressure on facebook i think they will be looking at what they are doing. One of europes biggest tech conference has announced it will be held on line and partially physically in lisbon joining us, founder and ceo of webb submit. It may be a virtual attendance with me and many others. Tell us what this means. This is a huge event will you have the same sort of numbers and what will the feel be this year it is a very good question. Online, we run software to run conferences online Prime Minister trudeau and the ceo of twitter will be speaking. It will be difficult to not be there facetoface we are ready for the alternative if possible, we would hold a small owe vent in lisbo event lisbon well be ready to host an event of many scale. Looking at what you were asking for from speaker receptions and lounges what does it mean for revenues and what does it mean for other conference facilities that will not go ahead in a physical capacity when we started 10 years ago, we were Building Software from the outset we were first a Software Company and secondly a conference organizer. The event usually takes place in toronto and had more participants on line than off. The change has been positive for many large conference or event organizers, this is a challenging time we hope our platform and im sure there are other emerging Software Platforms will organize their own events working to enable the similar platform hopefully other large events will pattern like us business events are 1. 5 trillion industry thats larger than the Music Industry what do you think the size of this industry will look like i think like cars, at the moment, the future is hybrid an the future electric. For us, the future is online it was a 20 million industry for online music if it is 1 of 1. 5 trillion, thats an enormous company or two. I think a few unicorns or decacorns will come out of this. For global events like ours, you open up participation to parts of the world where it may have been difficult to commit to travel an entire day i do think this broadens participation. Many who are used to plugging away at home or in a tshirt clearly, there has been a huge change also acceleration in the Digital Trends i think the ceo from twitter was talking earlier on your show they have announced they are staying remote one of the shifts will be in commercial real estate and sitting in cities around the world. Certainly, some of the highest paying renters for office space and cities are beginning to encourage more work from home even more. Well encourage fundamental shift around the world that will be one of the most fascinating trends to watch out for. Thank you for joining us. I hope to talk to you soon the founder and ceo of web submit the u. S. Has recorded nearly 35,000 new covid cases in one day. The highest since it peaked in late april at 36,000 tracie potts with us from washington, d. C. Talk to us about the latest round of infections and what the ramifications may be exactly and its a worldwide spike we are seeing how that is playing out here in the United States new numbers overnight, now more than 45,000. Those numbers went up overnight. 45,000 cases in a single day the largest number of new cases weve seen diagnosed and reported in one day. The previous record was in april when many areas were at the height of coronavirus. Now we are starting to see that spike in other areas as well in the United States, nearly half of our states are seeing significant increase in coronavirus cases. This is a second bump in what experts say is the first wave. A lot in the south and west in states that reopened early on. We have states that are running out of intensive care beds in texas, the governor is urging people to stay home because of the increase in cases. Now the cdc here is saying that we could see a total of 150,000 deaths by the middle of next month. The bottom line of those numbers is while some areas like new york, which had been a hot spot in the United States now on the decline. Other areas are beginning to spike and some say this is far from over. Let me take you to what we are seeing on u. S. Futures counting down to another day on wall street and jobless claims are out. Another 1 million plus americans have applied for fresh Unemployment Benefits taking that total to 14 million it is a huge number. Investors more positive to the start of the session s p 500 futures not just on the nasdaq and what we saw early on. Investors sold off all the major markets. You can see this morning with the turn around. Stark contrast of global economy. A drop even further almost 5 lower it is a warning from the imf about what could be ahead. Thats it for a very busy show today. Im karen tso. Worldwide exchange is up next. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. It is 5 00 your top five 5. Dow futures are in the green but technologies look tough. Wall street and new worries about lockdowns as states start to roll back some reopening plans. Not just states responding apple, disney and more taking their own response a bold market response to john rogers and what he see