You from the bloomberg terminal. American contagion. The u. S. Records its biggest ever jump in new virus cases. Governors reverse plans to reopen their states. Powell puts his foot down. The fed dividends bid buybacks. Buybacks amid uncertainty around the pandemic. Wall street giant slide in late trading. An elaborate fraud. Auditors accuse them of a sophisticated scheme to hide billions of euros. Visa and mastercard consider cutting ties. Just under one hour away from the start of cash equity trading in europe. Lets take a look at the futures as they are trading now. Yesterday, we closed slightly in the green. The u. S. Also rose and rallied into the close on news that banks would get a little bit more room from regulators to trade and be able to use more of their capital buffers, so diminishing the volcker rule, helping in the u. S. European futures are up as well as we get headlines that klm is securing a 3. 4 billion euro bailout from the dutch government, so we see more hope of stimulus, more news of support from authorities holding up markets in terms of futures. Ftse futures up. 7 . Dax futures gaining. 6 . Anna . Lets talk about what we see on these asian equity markets. In terms of the grr, this is what we have for you. A fairly positive picture coming through for the asian session. The Msci Asia Pacific up by. 6 . Which is interesting given what we saw in the United States. A lot of nervousness this week with regards to the virus and a second wave in the United States. This tugofwar still going on between the virus concerns, stimulus hopes, and expectations globally, but particularly in the u. S. That is part of the narrative we are dealing with this week. The banking stocks in focus in the United States, and that is a conversation we will get to later on in the program. The banking stocks being sent on a real roller coaster ride. The ability to do buybacks. But within sessions or changing legislation, behaving a bit more positively. Matt Companies Listed on the New York Stock Exchange raise more than 35 billion while the Trading Floor was closed. That was via followon offerings, capital raising, and ipos. Daisy cunningham says more companies are considering direct listing as an alternative to the traditional ipo. A really listings are interesting innovation in the Capital Market space and while they are not for everybody, we are hearing from investors and issuers that they are looking for more choices. Withve been working the fcc very productively. We have had two companies today. The cfo of spotify came up with the idea, brought it to us. We rolled out the first one. Slack was the Second Company to choose that path for their public listing just over a year ago. We have been building on that model is to allow for capital raising. With a direct listing, it separates you can choose to go public but not necessarily raise money at the same time, so the two to date have taken that path. Now, what we are working on is what if we want to raise money at the same time but we would like to exchange and process of opening that morning to determine how that offering gets priced. That is the phase we are working on with the fcc now. We filed the first iteration back in december and we worked productively with the questions that we have. This most recent filing which we submitted on monday answers mechanical questions around how that offering will actually be priced in the morning, how it gets entered into the market as an order, and what measures need to happen that morning to get that public. Sohave been advancing that that we continue to work with issuers and investors on having another alternative to the market. None of us knows exactly how or when it will come out but from your perspective at this point, is it really a mechanical issue . That sounds like we have to work at three and it may take some time but it is not a substantive issue that we will get through sooner or later. That is how it works with spotify. It took us 1. 5 years working with the fcc. Constructive feedback and dialogue. Their goal is to protect investors. They want to make sure that they are working with us to develop a process that achieves that goal. It took 1. 5 years to get that done. We are working on this iteration. They are not substantive issues. It is about how it comes to market, how it gets priced, how investors know what to expect from a price level, range perspectives, and how do we know that all this interest gets satisfied . Theres all the mechanical issues we have been working on. You will see a direct listing to have the ability to raise capital at the same time of their listing in the nottoodistant future and there are companies that have been asked about it, too, because they are interested in pursuing that. It builds on new innovation. We have seen over this period of time that during covid19 when the markets have been very turbulent, you have seen a tremendous number of special acquisition corporations which are management teams raising money without having the Business Operations yet but planning to go out and acquire a business. The fact that we have seen so many come to market over the past few months is really indicative of the fact that they are there are opportunistic businesses out there. At the time of the business combination, the combined entity is now companies. It is one more pass we have been working on. In success, as this all gets worked out, how much difference will it make . Will more companies go public . Will they be listed in the Stock Exchange . How material would it be for the New York Stock Exchange . I dont think direct listings will be the past forever company. We are the only one that has ever held one. The fact that we have human beings involved in the process on the Trading Floor overseeing that price discovery process puts us in a unique position to be able to make sure that things are flawlessly executed, not just at a time of ipos, but especially when you look at a direct listing. What we have seen to it is those opening options are much larger than the typical opening option for an ipo. Both spotify and slack were in the top five number of shares printed in the opening options of all opening options in history. Among a list of the largest ipos of all time even though as companies, they were smaller than all of those companies. Really massive trades because so much price discovery is happening. That is why price discovery is such a critical part of the direct listing process. We are really uniquely matt that was stacey cunningham, president of the New York Stock Exchange, talking with our own david westin. We have a lot of breaking news here on the bloomberg terminal. Let me go ahead and give you first off into properties. The board says it is likely to appoint administrators, meaning it is likely to file for bankruptcy. They are continuing talks with creditors, but if the board says it is likely to appoint administrators, it is clearly a bad sign. Clearly a bad space at the open. In terms of fashion news, we have got h m right now out with a net decrease of stores. They expect to be about 40 and 2020, so the impact of the covid19 crisis means they will be closing down doors to the tune of about 40 in terms of a net decrease this year. So h m coming out with a little bit of news in terms of the Second Quarter. They say their gross margin looks like 46 point 3 . The estimate was just around that, 46. 6 . They say also that pretax loss, the pretax loss for the Second Quarter will be 6. 4 8 billion krona. The estimate was for a loss of 6. 1 billion krona. It is a little bit more than that. A little bit bigger loss than had been anticipated. Klm,iterate air france, the story that we talked about for a moment. Air france, klm, 3. 4 billion euro bailout for the netherlands after weeks of wrangling over how much help the carrier needs to ride out the coronavirus. We are going to speak with the cfo of h m. Adam carlsen. An interview you dont want to mess. Texas and florida halt their reopening process. The u. S. Sets a daily record for new virus cases. Trump says these flareups will be put down. This is bloomberg. Matt welcome back to Bloomberg Markets european open. We are about 48 minutes now to go until the opening of cash trading across europe and in the u. K. , we can see futures are positive here. Looks like we have more than 1 gains on the cac futures contract. Could be more of a risk open in paris. The United States has hit a Record Number of new coronavirus cases. State Health Departments reported over 37,000 new cases on thursday. Texas and florida halted the process of reopening. Both states, texas and florida, politicalican led bellwethers that won praise from donald trump for easing restrictions earlier. The u. S. President took to twitter this morning. He said the u. S. Economy will not be shut down and that the socalled embers will be put down or probably put out. ,e are joined now by justin head of retail multiasset funds at legal and general Investment Management. Thank you very much for joining us. This does not seem to have had much of an effect on markets, at least u. S. Equity indexes closed in the green yesterday. We are looking at positive futures today. Are investors a little bit more sanguine about renewed hotspots with the possibility of a second wave than they were last week . We have seen volatility the increase in numbers. Ignored. Hat cannot be however, i think it is really important to differentiate between a rise in the virus numbers that we are seeing in those hotspots, california, arizona, florida, and texas. Really define the difference between that and a second wave. A second wave is really when countries have got the virus under control and then you see a spike up. This is pretty much a continuation of the first wave, an economyhan seeing completely reopen that needs to close again, we are talking about halting reopenings. It is important to differentiate between the two. We other aspects are that have not seen death rates start to rise yet, and that is something that we are looking at , looking at very closely. Not spiking up may imply the vulnerable are staying away, and the vulnerable are not really captured by the new cases and also that because we know more about the virus, it could imply that we are able to manage it better. Anna the infections are one thing. The death rates are very different, very different dimension, and we will continue to watch available capacity at some of the hospitals. Let me ask you about, away from the human tragedy of this, back to the market story. What do you make of the recent rally we have seen in tech stocks . Does that make sense to you that tech stocks can have such strength, given people are thinking about structural changes to the underlying economy here, given the concerns around the virus, can the nasdaq, tech stocks, keep on rallying . Justin the big concern towards policy on the technology. That is really important. However, we are concerned about the concentration risks in these tech stocks, so you know, when you look at the five tech stocks making up 1 5 of the s p, this is significant concentration, so although we like tech stocks, we think it is really important to diversify away from those bigger names and create a more diversified basket in technology names, particularly for index investors, and we have seen the growth of index, both on the u. S. Side and in europe. Think mayrs think they are getting the diversified exposure across the u. S. And Global Markets, Global Market cap. Taking accidental stock concentration, particularly for retail investors, which is my field. What we have been doing go on. Matt no, i was just going to say it is fascinating, as of all the cattle are really being herded into the same pen here and that certainly is a risk we can understand. We are going to take a quick break. Justin onuekwusi from legal and general Investment Management stays with us. We have more to talk about with him. Coming up, increasing diversity. Thinking about diversity in your workforce. Companies doing more to level the playing field. We will hear from investors taking steps for change. That is next. This is bloomberg. I think diversity does not just happen. It has got to be intentional. I have to say it is not a unique experience for me to often be the only black person in the room or around the decisionmaking table. I think it is a moment in time where leaders like myself need to spend a lot more time listening, trying to understand, and then actually taking steps. This is not a time where leaders or businesses can be neutral. They have to decide that they are going to be explicit about adding Inclusive Practices and diversity into the solutions. Are activelywe recruiting minority candidates much earlier than you normally would in different places. Critically important that we get africanamericans who are on corporate boards and progressive leaders that are on corporate boards to hold their management teams accountable for diversity and inclusion. Tied directly to their pay. More and more of our clients are choosing to deal with companies who they believe meet their social their environmental ideals. The companies are starting to realize more and more that not making progress is not sustainable. A number of industry executives speaking to bloomberg about diversity in the workplace and the need for actionable steps to effect change. Let us pick up on that conversation with justin from legal and general Investment Management. We have the source on the markets a moment ago. This is something you have been leading a charge on and you were recently awarded the freedom of the city of london so congratulations on that. Will you look at the Asset Management industry is there one or maybe a step that you would like to see enacted to try and improve the diversity of the workforce . I think so. I think diversity, you have to split it into the different segments, whether it is gender, diversity, ethnicity. The key thing is to listen to the people within your business. Every culture within a business is different. To understand the lived experience of people in your business is vitally important if you are going to make steps to correct this. It is not just about guessing a diverse relation to your business. Its about creating an inclusive culture. It is that culture that i think is really where Companies Need to really focus and really understand the lived experience of their employees. Matt what is the talk about black movement that you have started here . What is the intention and how is it working . About three years. The idea is to address the underrepresentation of particularly black people in the Asset Management industry. Just a few stats when you look across the city of london, it is based on a new financial report. There were 12 black Fund Managers across the whole of the city of london out of thousands. There is only two people that we assetentify that fit in managers across the city of london. There is a lot of work to be done. It does not lump all together. It actually said ethnic minorities may have different experiences. In order to really tackle increase representation of ethnic minorities, you have to break them up and understand the lived experiences. Anna with that in mind, i wonder what you can suggest also for inspiring young black men and women, boys and girls, to get involved in the fund Management Industry and Asset Management. Inspire them to get involved. Justin one of the Biggest Challenges that we see is entrylevel. Entrylevel, when you speak to students and universities, when you speak to kids in schools, in communities, they dont know the Asset Management industry exists or simply, they do not see it as being attractive because they do not see people that look or sound like them in the industry. What the industry can do in this case is obviously reach out to those communities, number one, but also showcase role models, showcase the people that are more diverse. Because that will help attract a more diverse that should lead to better results in the future, as you should get greater cognitive diversity by having a more diverse of people. Matt are you interested in getting a more diverse slate of people, justin . Whenever you talk about quantitative easing, Central Banks, boosting income inequality, it is all about the fact that, for the most part, you have got, you know, white people invested people of color are not quite as much. Do you look to change that or has that come down the line . Justin that is something we are looking to change. You identified a number of things. An analogy which stops black talent from rolling through. In particular, high crime is where we want to address this. Learning about investing, learning about saving, comes pretty early. Currently, working on wanting an afterschool program. Go out into communities and teach people softer skills, teach people about networking and things like that. Also importantly, teach people about how to invest their own money. Anna really important messages. Thank you so much for joining us today. Justin onuekwusi, head of retail multiasset funds. Apologies for interrupting. Next, we will talk about banks. 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 welcome back