A survey says more than half their nts will keep children at home. Hong kong stocks see a rally from u. S. Holds off tough sanctions. Ain line equities are unfazed by the unexpected pull jack. Good morning, everybody. To the markets straightaway. Well show you what weve right the futures now. This is a picture for you. Futures certainly suggesting strength some coming from the european equities session. We have a little bit of catchup to play in the but not to the extent that we see futures bouncing in europe. Some expecting strength perhaps in relation to the opening up story. Far fingers crossed, all fingers crossed. Well keep alert definitely to a second wave and talk to our guest about the subject. Some catchup with the u. S. U. S. Futures look a little more sanguin, of the y very aware violence thats been taking place. Weighing on investors minds no doubt although equity markets seem to be last from this story week. Well see whether that lasts. Thats what weve got in erms of the futures picture. Its interesting to see the asian market and how risk on asian markets were, particularly the hang seng. 3. 4 . Ng kong up by even the chinese up. Ong kong market up very strongly. We did hear from trump on friday and he talked about anctions being possible with regards to china and its activities in hong kong but he didnt go as far and wasnt as specific as some had expected he might be. Hong esult, we see kong equities moving to the upside and singapore equities as well. Coming through the Asian Session and european futures do point higher in defiance of some of the gloomy headlines we have. Get to first world news. Erupted in several u. S. Cities following the death of george floyd. Custody. N police its ranged from marches to setting fire to government buildings. Trump is blaming the riots on antifa, a movement of left wing activists. Hell declare the group a terrorist organization. The uk government is coming nder pressure from its own scientists to show caution in easing the lockdown. 20 experts wrote a over the weekend saying the public foreign secretary has defended the ecision to loosen restrictions saying always ts do not agree. Two american astronauts board the International Space station. T marks the first time humans have traveled to orbit on a commercial spacecraft. New era for nasa and is a big win for the billionaire elon musk. Its also the first time that american astronauts u. S. Soil from since the Shuttle Program 2011 thereby decreasing the reliance on russian rockets. Day on hours a bloomberg powered by more than 2,700 journalists and more than 120 countries. Lets get back to the markets. We need to bring these stories together. Stocks in asia have been hitting higher with hong kong markets jumping this morning. Risk assets are happy with what the president didnt say on friday with regards china. The president stopped short of defining tough sanctions over chinas new security law for hong kong. Lets get into the markets bloomberg our managing editor, he joins us from singapore. Morning. Ry good how do you square the very gloomy headlines, clearly concerns about civil rights in the u. S. Protest , with activities, but it also leads to questions about the economy. And ability y to rebound in the u. S. Economy. How do we draw a line those very negative images and the move that we to see in markets at the moment . Mark the markets have no moral judgment on the situation. Of the so there really arent making a judgment about protests. About the what they are saying is there is just chasing assets of the massive stimulus programs weve seen globally. However, there is a little u. S. Risk premium on assets. I think overall, it was the ted, if we exclude protests in the u. S. , we expect it to be an extraordinary risk on monday, given that donald trump declined to escalate u. S. China tensions further a step back from the edge so that was a big sweat on markets last week its been ameliorated. O you expected a massive risk, but its been very risk on for most of the world but, in fact, u. S. Are pretty es much flat. So the u. S. Is paying the these protests. Its just not fitting into the rest of the world and that kind of makes sense. Is it a danger that we read too much into the tone maybe that President Trump or the lack y of details or the fact that e didnt step up sanctions immediately and very specifically because some well over the weekend dangers ofut the moving very much towards a and perhapsorld anybody seeking further signs of a truce between the could be hina disappointed in the future . Mark i think it depends on of markets. Clearly the tensions between the u. S. And china are a running situation but they havent just developed under donald trump and i a nk its just taken slightly more aggressive tone in recent years and they arent going to go away. Rising super power in china and thats challenging the hegemony that the u. S. Had globally therefore that will have increasing tensions in the years ahead. That wont go away. Market theme right now . I think that many people have outlined that its that trump is going to derail the china deal ahead of his far the election. The china buying were eeing although moderate is one of the few victories he voters. H he might go for some more headline grabbing. What weve seen so far is to expected and i dont think markets are misinterpreted or reacting incorrectly to sayis all for now. They are not saying over the next 10 years the relationship will stay good. Saying, this has probably been put on the back burner for the next months. Of it might ride up again but for now weve got too much in our possibilities by policymakers. Weve got to buy assets. We do see european utures pointing very strongly at higher marks. Weve seen china, of course, large th korea to a extent ahead of this story. And we have had some data south korea d over the weekend. What clues are we getting from these asian large how quickly to or how slowly its possible to rebound after you remove of these lockdown measures . Mark im not sure the data were seeing at the moment is the main driver of whats happening in markets. The idea river is of this massive stimulus geopolitical tensions. However, data weve seen has shown that the economies maybe werent as derailed or at least arent going to be bending back as quickly as some of the feared. Treme so were looking at the most negative scenarios. Necessarily positive but its removing another saying its possible that markets might a little n track quicker than people feared maybe only a month or two ago and as long as that is still open its a positive environment in light of the massive there. S packages out mark, thanks so much. Cudmore, if you want to touch, if you want to talk to the tv team thats the function to use on your bloomberg. Dig furtherell into the protest activity in the United States. Protests erupting across america. Rarely tensions fuel violence in dozens of cities just as the country starts to revive its economy after coronavirus pandemic. Well bring that you story next. This is bloomberg. Next. This is bloomberg. Welcome back to the European Market open. Past 7 00 utes here in london. Go till minutes to the start of the european trading day. Bloomberg business flash for you now. Here are some of the top corporate stories that were this morning at bloomberg. Looking to defuse a strike at its factory in northern france. The carmaker says it has no plans to shut it down but after they pted announce add sweeping cost cutting plan, a reduction of the 0 jobs around world. Talks with unions about the future of renaults northern site is set to get underway tomorrow. The e. U. Could charge 7,000 companies for access to the e. U. Market. That to help pay for its coronavirus recovery program. An news is, according to interview with the budget in the financial times. A report saying there is no alternative to new sources the venue to service e. U. s debt. New york city finance wont recover from coronavirus until 2026, thats according to analysis. Has lost about jobs this year. More than 800,000 last august. Covid19 isnt the only for the cut but the lockdown has forced a domino effect on everything from to mortgage payments. Thats your bloomberg flash. Get back to news stories focusing on the violence in the United States. Violence erupting in dozens cities across the u. S. Following the death of george floyd. Unarmed black man died last week. To as the u. S. Works recover from the coronavirus, shutting down the economy resulting in lost f millions of jobs. Heres more on the phone from San Francisco. Good speech this morning. Bring us up to date. Of is the sixth night protest activity and violence. Yeah. Iolence and curfews are continuing in cities across the United States. Cities like denver, boston, and new york but as we get into monday morning, there has been an escalation in those cities with protestors clashing police, you know, San Francisco where i am enacted which w this morning came into effect about two hours ago. Los angeles has seen rioting throughout the day and the National Guard has been deployed. There are numerous reports of the National Guard being in a number of cities. That kind of escalation has case sense friday, when the officer bent with neck of on the george floyd was arrested and charged with thirddegree murder and manslaughter that. Of escalation has progressed over the last couple of days. The on monday president will meet with the attorney general william barr and host a Video Conference with state governors, you know, police officials, and kind of work this out. A really of like key week. Before this broke out, we all were looking towards 1 because that june 1 date is when a lot of states would move to the next phase reopening their economy particularly things impacting retail and the now urant industry and there are some question marks about whether that progress can kind of go concerns well as from Public Health officials, of course, that protesting people in close proximity will spur further outbreaks of the coronavirus which, of has already redamaged the economy in months. This comes at an already difficult time, of course, u. S. Economy. How is Corporate America reacting, because just at a ime when many were expecting the Corporate America to pick up again to ick back into action post coronavirus lockdown, the protests are understandably stopping that from happening some cases. Right. There are some very direct you know, target, which has its headquarters in minneapolis where this started has has closed stores there in addition to other stores country. E amazon has reduced delivery of packages and operations is ities where the risk highest. Apple closed a number of its stores on sunday. Ou know, its likely some of them will remain closed. You know, has closed stores. The fronts of the windows smashed in and it was closed up. Thats the realtime reaction. Of Corporate America, netflix on madeday, citigroup cfo a personal blog post addressing this issue of, hand which is in line with the black lives atter movement and thats continued throughout the weekend. The starbucks c. E. O. Posted oday, you know, there is this kind of two parts to it that Corporate America, biggest m the publicly Trading Companies to the mom and pop shops are in ng that retail particular will start to recover in the month of june nd what youre seeing is a lot of damage to shop fronts skittishness while there is violence on the streets. With the latest, that violence taking place in america. Cross well continue to focus on that story as we go through morning. Our next conversation, well focus in on all things that pound e moving the through 2020. Will brexit be back on the radar . We expect us can from the uk government hedging through the summer reopen s we slowly the uk economy . Well have a guest to talk about uk next. This is bloomberg. This is bloomberg. Welcome back to the European Market open, 40 of tes until the start the trading day. Futures pointing up this orning by 1. 5 over euro stocks 50. Lets get into the market conversation around the uk right now. An uk is preparing economic stimulus package. Orking on proposals to invest in training program, infrastructure and help for companies as he tries to limit the recession the coronavirus. We have a guest. Pound. Ocus on the clearly stimulus activity from the uk government will be one thing after many where the guide pound heads from here. How focused are you on further stimulus coming from government. Its got to be the right thing at the right time, i suppose. Think what weve seen from the you can government has been unprecedented. Exceeding what weve seen from other international peers. Deficit has e increased and weve seen by almost all of that increased issuance. Know it fell off sharply in march on the initial enactment of the fiscal but its rallied. Any further increase in iscal stimulus kind of implies in bank of england quantity, in order to facilitate that increased debt issuance. We think that will be a ajor driver Going Forward and really suggests along increased Political Risk that sterling should fall. Easing uantitative should be one of the factors that weighs on the pound. Brexit see the negotiations, we can talk about that in a moment but we want to remind ourselves, 80 of the uk economy, just over, is services, and if it to es very difficult reopen services activity, post the lockdown, that could be something that elatively hits the pound harder than, say, the euro or other currencies . Yeah, absolutely. A very clear story from pmis that the Services Sector has taken andbrunt of coronavirus of lockdown measures. Considering, you know that massive way that the economy disproportionately focused on the service that t the uk is exposed, it does suggest that well see a in the ukery here from the coronavirus. Brexit talksct to resume once again this week. Here is a deadline looming at the end of june, at the end of this month, lets but i ourselves wonder how much that matter given weve heard strong governmentthe uk that they will not extend. Is it a base for the markets no there will be extension, that its into the autumn to december 31 . I think hour right. Policy makers have been very lear that they are not going to ask for an extension. We had some comments from week frost last suggesting there is a deadline likely to be missed that crunch point that we were expecting at the end of june is now unlikely but we think as we kind of push we dont deadline, have an extension heading into the year end well see and an d rhetoric increased focus on the brexit story. At the complex on i xit, its a risk and think in a world where everyone is looking at pmis, coronavirus, case curves, markets could really this as kind of having a stronger narrative and a stronger direction. Make of the u strong riskon picture that ere set to inherit in europe from asia overnight . Hong kong and the hang seng moves higher but in asia was broader and the rally in europe looks strong but u. S. Subdued. Re quite what do you read into that kind of riskon picture that expect for europe . Think hit be a risk positive. A lot of nervousness heading into trumps response on friday didnt deliver the bite the markets were expecting. The next u. S. Trade war, you could see broad financial none of that really materialized. Hat we got was, you know, sanctions, retaliatory measures actually very focused on hong kong and a few remediation issues for china. So it kind of lacked bite, wouldnt buy into a rally. What was very clear from the peech, this is almost a president ial campaign speech, and this kind of something is were very likely to see ontinue right up until the election. That environment [inaudible] mindful of the path from and the ovember u. S. President ial elections place e set to take then. Thank you very much. Thank you very much for joining us, we do see a bit underpricing or rotation away from u. S. Assets overnight, whether thats futures stock market or whether the dollar. A bit of underperformance of assets. Up next, markets in south africa, beginning to reopen the economy from today. Well speak to the south African Reserve bank governor. He joins us next. This is bloomberg. Ns us next. This is bloomberg. Welcome back to the European Market open. Half an hour until the start european trading equity day. Green ct to see some on the screen, some positivity at the start of the days session. At whats happening in south africa. Rereleasing, the country will move from a level four most el three meaning businesses will be able to open and an additional eight Million People can return to workings after a 50 basis points rate cut back on may 21 the reserve bank said the impact will only be felt as the economy does reopen. Now, were joined by the south African Reserve governor, Lesetja Kganyago. Its great to speak to you. Thank you for joining us on bloomberg. You can do more with Interest Rates. That you might more with Interest Rates as the south Africa Economy continues to recover . Its difficult to say at moment. Inflation it say, is not an immediate concern. Problem is not a for the next 12 months, and aim to cut inflation, and will keep usit [inaudible] the beginning of year, we have basis d 275 points. That 275 basis points couldnt be felt during the lockdown. Economy reopens were oing to have to reassess what the impact will be. Deploy, n ready to with our mandates. Do you nor, when think, then, that the fully will benefit from the 275 basis points of youve already done to date . Government has spelled out taking a riskbased approach. In the dark of the lot of as of course [inaudible] the consumer inflation. We do have a meeting in july ultimately by the time have there, well enough data that will enable the decisions that well have to make. Okay. When it comes to the rolls bank is central playing at the moment, governor, weve seep reports over the weekend suggesting that some parts of the anc role of xpand the the central bank, to invoke financing infrastructure and development of finance funding the eveloping financing institutions, are you wear for the anded role centra