Curfew takes effect at 8 00 p. M. Eastern time tonight. The u. S. Forasts double standards after its treatment of its protesters. Then stocks sit higher as pboc unveils measures to boost lending to the real economy. 6 00 a. M. In london. 7 00 a. M. In paris or berlin. Understand whyo markets really are looking through the threat of martial law. Hisammons sent through notes. He said if you see this black swan evolve, i. E. Curfew across america, you are looking potentially at equities to retrace all the way back to march 23 levels. Of course, trump is potentially saying that he could bring the military onto the streets, saying the Second Amendment will not be affected. Annmarie exactly. Good morning. This is the question investors i read that note from ben ammons. The fact is, this divergence, what is going on in terms of wall street versus main street, the disconnect between the markets, which had a three month high, and what is actually happening around the world, let alone the fact that we are still dealing with a Global Health crisis and pandemics, tensions between beijing and washington, the Unemployment Rate is expected to be the worst since the 1930s, near 20 , and civil unrest across america. It didnt turn to widespread looting in the city. That is as i speak to you at new york citys under curfew as new york city is under curfew and we will have another curfew tomorrow and it will start even earlier, manus. Lets quickly look at what the markets are telling us this morning. We are seeing Global Equities in terms of divergence. Downsideutures to the under pressure given everything i just told you there. Social unrest continues in america. Investors assess the prospect of the deployment of u. S. Military. As her President Trumps address, we will get more on that in a moment. Upside, upies to the. 7 . Closely watched measure yesterday of u. S. Manufacturing rose in may. The pboc injecting some help into the real economy. You are pointing towards a higher start. Thats take a look at whats going on across assets. The dollar index, 11 week low. No real moves in the bond market. Oil on the front foot. We are waiting to know with opec will meet on thursday. Under discussion. Do they taper . Do they not taper . Agree . Di and russia i know you and i will be looking forward to that meeting. Potentially and likely on thursday. Lets get more on our top story. President trump has threatened to deploy the u. S. Military to end what he calls the riots calls riotswhat he and lawlessness. Unrest continued over the killing of george floyd, an unarmed black man, by police last week. Pres. Trump if the city or state refuses to take the actions that are necessary to defend the life and property of their residence, then i will deploy the United States military and quickly solve the problem for them. Annmarie later this hour, we will speak to our report on the west coast. For now, lets go to washington d c we are joined by bloombergs john carney. Thank you for joining us. I know it is late on the east coast. What seems to be the president s strategy and his response to the protests we are seeing around america . John he is trying after the pandemicus epidemic. Protests widespread and violence by some of the protesters across the country that project an image of. Trength, of power and he has taken a bit of a leave from richard nixon, declaring himself a law order president , and this unfolded at an extraordinary way this evening, when he, you know, as was a protestere at the white house, and all of a sudden, the policeman fired tear tear gaslicemen fired against people who were demonstrated and peacefully, and his he walked he made address said he was going to deploy the military to you know took home the tensions tensions ande violence. He left the white house to go to this church that had been set on fire yesterday. So it was just a remarkable moment. In the Trump Presidency and in recent american history. Pres. Trump and of course manus and of course, good morning to you, john. This is where cuomo said the president wants to make it a Reality Tv Show of god and country, call up the military, and then go to a church and hold up a bible. As you can see, the imagery is there. Very potent symbolism that that is being used by all parties in this. And i ask you, we have written our story saying that the president may use the insurrection act of 1807. In 1992, this was used took while the los angeles riots. The question is the efficacy of what legislation the president might use. He does have legislation on his side at this stage. That isis is something going to be debated by constitutional scholars, lawyers, politicians, others. Yes, this act has been put into force, put into place over the course of the last 200 or something years, but normally, a governor would have to request federal troops to be deployed. Weere is no indication saw Governor Pritzker of illinois today who operated the president for his upbraided the president for his rhetoric, saying people are not being tough enough with the protests. I think a lot of governors would be very reluctant to call in federal troops. Can he do it without the governors permission . Well, we will see. Enormous number of questions. Annmarie tuesday, november 3, that is what everyone heard from joe biden, the presumptive democrat nominee for the president ial election. How is all of this likely to play out in the Election Campaign . Going to beis making a speech in philadelphia tomorrow. Later today, actually. In philadelphia, to address this crisis in the civil unrest, in the raw feelings over the death of mr. Floyd in minneapolis. ,ou know, he has to you know he spoke with black leaders today, monday, and they are saying, you know, its fine. The message seems to be that it is fine to express sympathy, to express compassion, but what are you going to do about it . He has to present an agenda, something that will move the country forward from these crises that have unfolded. Over the last 50 years, sporadically, in the 1960s, and then again, yes . Manus thank you very much. We are going to leave it there. As you say, theres going to be a great deal of constitutional debate about whether the president can use those powers a governorshout request. Thank you very much, john, joining us on the very latest. Lets get you up to speed now with the first word news because facebook employees are increasingly unhappy with the firms lack of action against controversial comments from the president after twitter obscured one of his process, saying it glorified violence. Facebook opted against a similar move. Some senior figures are now leading a virtual walkout. Ceo Mark Zuckerberg plans to address the situation in a Company Meeting today. Lam hasg leader carrie blasted the u. S. For double standards, blaming the Trump Administration for cracking down on demonstrators. Plans to out against strip hong kong of its special trading status. Is simply no justification whatsoever for any toernment, any economy, impose sanctions on hong kong as a result of very legitimate process of the Central Government the central authorities taking this position to enact laws for hong kong to better protect national security. For the first time, hong kong has banned june 4 gatherings to commemorate the crackdown in tiananmen square. Boris johnson plans to reset his governments agenda with a major speech. Drawingcellor is also their plans to bolster the economy amid the worst recession in 300 years. Sources told bloomberg his speech is expected at the end of global news, 24 hours a day, on june. Air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Annmarie, you are there. You are living it. You are in new york. Annmarie in new york, where we are in the middle of a lockdown, the first curfew in more than 70 thes, and the president of United States urges states to dominate the protesters paid up next, we will discuss the Market Impact of all of this. This is bloomberg. Manus it is bloomberg daybreak europe. I am manus cranny in dubai. Global stocks, as we have been saying, have seen a rebound since march. That was caused by the coronavirus pandemic, and despite the unrest in the u. S. , Credit Suisse is maintaining its positive view on equities. Joining us now for the next hour is our guest, cio of International Wealth management and global head of Economics Research at Credit Suisse area always great to have you with us. I read the notes with fury this morning. Do not panic or change your investment goals. That was admits to the coronavirus crisis. You said temper panic with patience. As you look at the unfolding situation in the United States of america, must i apply patience and not panic at the moment . This is the right message, and indeed, if we take a look at also how the equity market reacted over the past few days, we are still having an equity market that is focusing on the reopening of the economy. Also, when you take a look at the temperature of the market, for example, with the vix, the implicit volatility index, the same message seems to go on. I think at the moment, of course, every situation has to be monitored with attention from the part of investors, but there are important levels that have beeneen that have now broken to the upside and that just suggest that there is a remaining positive sentiment, so we have kept a steady hand for now. Annmarie good morning. You talk about this steady hand, but many continue to question just the disconnect you are seeing on wall street with stocks at a three month high, but what actually is happening in the real economy, not to mention a Global Health crisis, and where i sit in new york and what i am witnessing is unrest in the streets. How long do you think this could last . In terms of this d correlation decorrelation, there has been a lot in the media in terms of, for example, the reality on labor markets, and then how Financial Markets, the take the Financial Markets have chosen to do on the situation. I would just highlight the following. Financial markets and equity markets in particular are forwardlooking, and hence, what is really important are the recovery. Of economic important indicators here to support the equity market at the moment are coming actually from the credit market. In fact, the very Large Purchase programs of the Federal Reserve as well as the ecb are going just to continue compressing credit spreads, and that will bring actually the discount rate for future earnings of companies are down. We think there is support from the credit market. Lookinly, when you take a at those economies and regions that should be first to register ofo the improvement, a sense a bit more normality in the Economic Activity are to be found in asia. Of course, the Chinese Business cycle is very important for a number of not only countries around that are intimately tied to the chinese economy and the business cycle, but also sectors like commodities, for example. And you have been seeing that the eurozone equity market has now started to come back here. It is one of the regions that tends to be really correlated with the Chinese Business cycle as well. Of course, oil is continuing to help. I think that all of that, coupled with a lot of doubt i mean, many investors have simply not participated in the equity recovery here from the lows. So all of that seems to be supported for now. Manus yes, you suggested that is euphoric. It perhaps the participation has not been unanimous. I want to pick up a couple of lines of thought they. You talked about the credit markets. I have a look at the high yield and the investment grade. The compression of those spreads. And i just want to get a sense from you as to what moves the next major move because president mr. Powell said we are moving from emergency liquidity to credit lending. That is the next phase of the fed. Do you expect further compression in credit spreads, and what does that do to the equity story if we are moving from emergency liquidity to credit lending . Nannette theres a couple of things to note here. There has sure that been this view of expanding and using the power of a Central Bank Balance sheet to reengage in asset purchases where actually, the asset to be purchased have been extended into credit. So that is certainly bringing just a buyer into the markets in the form of the central bank that is very helpful for the credit market to gain is poised again. That is one part of the story. The other very important part is that when a Central Bank AssetPurchase Program is coupled with expansive fiscal policy, in other words, expenses from the government that are being funded by increased debt issuance by the government, then this is also quite powerful. Of moneyul in terms coming into the system. Now, money area supply to really increase, that was something that was missing, for example, in the last set of asset purchases when fiscal policy in europe was contracting. So i think that also, from an economic standpoint, the credit lending is meant to actually really engage credit growth. That is supportive to the economy. Annmarie we are going to get into the ecb and a little bit. Nannette hechier faydherbe from quite a series stays Credit Suisse stays with us. A quick look at what is coming up this week as well, we have on thursday of course that ecb meeting as well on wednesday. We have google, manus, that will be one of the things to look at. They have an agm as well as brexit today. There will be more brexit talks. Manus there will indeed. [indiscernible] the crescendo is at the ecb. Carrie lam. We will talk china. Are they on the defense or offense and policy in policy . We will come back to carrie lam in just a moment. This is bloomberg. Annmarie this is bloomberg daybreak europe. I am Annmarie Hordern in new york. Manus cranny joins me in dubai. Hong kongs leader has blasted the United States for double standards over the way it handles protest spirit tear gas was fired at crowds and washington, d. C. As people peacefully demonstrated over the death of a black man who was pinned down by police. Carrie lam made comparisons over the way that territory has been forced to deal with riots. She also addressed President Trump threats to remove the citys special trading status. There is simply no justification whatsoever for any government, any economy, to impose sanctions on hong kong as a result of a very legitimate process of the Central Government the central authorities taking this position to enact laws for hong kong to better protect national security. Annmarie nannette hechier faydherbe from Credit Suisse is still with us. We see escalating tensions between beijing and washington, and of course, hong kong is in the crosshairs. Does this change your positioning on potential investments where do you investments . Where do you see opportunities in china and hong kong . Nannette certainly, tensions are always to be monitored attentively. However, we have taken the view globally whether it is for assets from emerging markets, including from china. Markets. Of developed we have taken the view that theres some very strong, underlying societal changes that are bringing opportunities around. And just to speak, for example, and one of the societal trends that is simply population aging. Is how the chinese economy the agingo accompany of its own population is uncovering potential in health facilitiesl as in and in a number of sectors. Just to say that always, of ,ourse, beyond the shortterm there lies the opportunities, and these opportunities are just driven by things that are very separate from the talk that is just the top of the day. I would just have to say the following. Neither for the u. S. Nor for manus we will pick up some of those super trends we are going to pick up some of those super trends in just a moment. I know you have very core views on tech, health, and emerging markets, so we will turn to that conversation with nannette hechier faydherbe from Credit Suisse. These are images coming to you from washington d. C. The president of the United States threatened to use troops to address the unrest in the city. The debate will roll around what legislation he might use to enact u. S. Military on domestic inside the United States. It is suggested he may refer to legislation of 1807. We are live to san francisco, next. This is bloomberg. W . W . Uhiono annmarie good morning from bloombergs headquarters in new york city. I am and reordering. This is bloomberg daybreak europe, and these are todays top stories. U. S. Equity futures fall as protests hammer u. S. Cities nationwide for a seventh great night. President trump threatens to deploy the military and what he calls lawlessness. New york city is under curfew for the first time in more than 70 years, but looting continues. Mayor bill de blasio said the second curfew takes effect at 8 00 p. M. Eastern time tonight. Carrie lam blasts the u. S. For double standards over its treatment of its protesters. Asian stocks sit higher as the pboc unveils measures to boost lending to the real economy. Manus, good morning. We are seeing some of that pboc action play into the markets in asia. What is the picture . Manus absolutely. The pboc, you know, is it q. Week . Qe . Not if you have to repay the loans. Where wet is about to are on the streets of the United States of americ