Weaker byh pound is 9 10 of 1 . Picture withig tina fordham, avonhurst partner and head of Global Political strategies. She joins us from london. States we are 57 days away from the election and still no stimulus insight, even though the senate is back. It does not look like the president and democrats are ao any page that would be considered similao similar. Where do we go from here . Tina i think another round of stimulus should be a foregone conclusion. This haggling we are seeing, Congress Just back from recess, is what you would expect to see. Each side wants to see they are driving a hard bargain. Look at the language used by the two different sides. Republicans say the president wants nothing more then to write checks for american families. Democrats say the stimulus is not just skinny, it is emaciated. But we are going to get there because we have to. Ands a political imperative not just an election year, but with an election coming days nobody wants to pull the plug. Vonnie it
Cash trade. Here are your top headlines from the bloomberg terminal. Trumpa on the defensive. The president stands by his handling of the coronavirus on day one of the Republican National convention. Says democrats are still blaming America First Nikki Haley Says democrats are still blaming America First. The chinese arrives in europe today. Demandsla merkel answers from russia after it was putin critict the was likely poisoned. We have figures crossing the wire right now. The German Economy shrank 9. 7 in the second quarter. The initial estimate was for a drop of 10 point 1 . This is a second look here, and so it looks like it is a little better than expected. Still, of course, a massive drop , the quarter over quarter figure. The yearoveryear figure is a drop of 11. 3 , so a big drop in the german gdp. That the bloomberg economists expect a rebound in the second half, and of fullyear drop of about 6 for 2020. Lets take a look at what futures are telling us after the new record highs
Shortly. Onhave got hopes of progress a vaccine and signals that they are making progress in terms of the u. S. China trade tensions. Both of those really firmly supporting the risk rally that we are seeing. Let me show you the state of play with the stoxx story. The back ofming off record highs in u. S. Stocks. The good times might not last, according to morgan stanley. They are saying the market is vulnerable to shocks, especially rising rates. Treasuries are on the back foot as we speak. We are looking at a weaker greenback. 830. Dollar at 1. 1 yeah,ps a little bit of a strange one given the wider risk appetite. The folks at pimco saying the gold rally is it played out yet is not played out yet. They believe gold remains attractively valued, especially in the context of low Interest Rates. Here are some of the stories we are watching. Both of the u. S. And china are seeing progress under their phase one trade deal. They are committed to the success of that. Senior officials from the
The cash trade here in europe is less than an hour away. Lets get your top headlines. Softbank plummets on reports it made big bets on derivatives linked to u. S. Tech. A selloff looks set to continue, although u. S. Stocks are shut today for the labor day holiday. Johnson plays hardball. U. K. Officials say britain is not scared of walking away from brexit negotiations emptyhanded. Talks restart on that note in london this week. And cracks in the pipeline. Germanys board member former minister links nord stream 2 to the poisoning of alexey navalny. We are less than an hour away from the start of european trading. There will be no u. S. Equities trade today. You can see european futures are gaining. We are getting more german data out now, economic data. Up 1. 2 . Strial output the estimate was for a gain of 4. 5 percent, so a mess in terms of Industrial Production so a miss in terms of Industrial Production. Yearoveryear, there was a drop. The actual drop was 10 . The estimate had bee
At the same time, we generated more capital through earnings. Thats why are ratio is 12. 5 . Talk to me about the merging of the two units. What is the reasoning behind that . The Investment Bank merger is something weve been discussing for months. Even my predecessor, it was already a topic. 2015, clearlyn the two had to be separated. We had to restructure the trading business. Are at a stage or we can put them back together again. Most of our competitors have it anyway. This is not a cost exercise. There will be some cost benefits. Its really about having one overriding business to have one Investment Bank globally, one equities business. A Global Trading solution business, which build on our success. It serves our equity, fixed income, transactional business for the private bank and institutional business. How difficult was it to do this in the middle of the pandemic . Thomas it was relatively good. You get used to resume calls. Zoom calls. We had many internal calls to get this lin