Ridehailing company grab is among the companies reconsidering partnerships. And it is rent day for britains commercial tenants, but how many businesses will pay up . Theu. K. Plans this as u. K. Plants substantial easing of lockdown measures. We will get analysis. Lets have a look at where we are on the futures picture for equity markets. This is the picture for european futures. Stoxx 50 futures and ftse futures both down around. 06 0. 6 . It looks like we will have a bit of a move to the downside at the start of trade. U. S. Futures are fairly flat this hour. Futures on the s p entirely flat, on the dow entirely flat, the nasdaq or positive, up 0. 2 . Yesterday we saw concerns around the second wave of the virus or the third wave, perhaps, in the u. S. , the south and southwest of the United States, taking the edge off gains in the s p, but the nasdaq is powering through to new record highs. Lets show you whats been going on through the asian session. Things looking pretty mixed. Some markets doing better than others. We saw the kospi making canes, still up by 1 , on further developments geopolitically on the korean peninsula. Things looking a little more negative this hour than they did just half an hour ago. The Msci Asia Pacific fairly flat overnight, off some strong gains for tech stocks in the u. S. Yesterday. We will get to that story later. Lets get bloombergs first word news update for you. The pandemic spread in the u. S. Is leading some state officials to consider slowing or even reversing plans to reopen. Cases are rising in texas, florida, and california. Hospitalizations showed a big jump. Infectious disease expert anthony found she about the uptick Anthony Fauci is concerned about the uptick. Dr. Fauci the surge of infections look like it is a combination, but one of the things is an increase in Community Spread, and thats one of the things im concerned about. This is something that has been in the press over the past couple of days. Anna the u. K. Will see a dramatic lifting of lockdown measures in july. The goal is to save the economy, but the risk is that it causes a second spike in infections. Yesterday, Boris Johnson was clear he took full response ability for the decision. The doctor flanking him, though, warned about the dangers. A strong earthquake hit southern mexico today. 400 miles away in the capital, mexico city, buildings shifted and tiled on roofs were shaken loose. Pemex says it shut production at its selena cruise refinery after the fire. Global news 24 hours a day, powered by more than 2700 euros and analysts in more than 120 countries. Lets get back to the Global Equity story. Global stocks and equity futures looking mixed as investors weigh their appetite for risk assets against the continuing acceleration in coronavirus cases across the american sun belt. Lets get in the conversation with mark cudmore, who joins us from singapore. It seems we are caught in the same push and pull on a daily basis. On the one hand, a rise in daily infections. On the other hand, the question about what Central Banks and fiscal authorities will do globally. Do we see a way out of this seemingly constant theme . Mark it has been a spectacularly dull market today. I think conviction levels have dropped. Its kind of weird because the global story, supposedly we are a more diverse world and there are many Major Economies and its not all about the u. S. Like it was 20 years ago, but it reality, the market at the moment is just about the u. S. Of u. S. Is at the epicenter the coronavirus resurgence, and the problem they are about if they are going to have to reshut down states. Tech in the u. S. Is really surging ahead. And the election in the u. S. Is pressuring International Policy and might send us into a tailspin again if there is more trade tensions. , it waits for the u. S. Session again. I think thats where we will decide the shortterm direction. I think people are much more entrenched in their mediumterm view either way. Anna and as we wait for the u. S. Session, we might it more clues through that session, i suppose, about where tech goes from here. On the market side scene, you have been arguing this, is the tech rally above all or a sustained boom . What kinds of responses have you been getting in light of further strength on the nasdaq today . Mark i am hit by have overwhelmingly bullish the responses have been. Normally when you ask these questions, you either go into the void or you get a load of answers. Either side will give you emotional answers. In this case, very much bullish responses. I think that reflect more to the fact that it is bulls who feel like they can speak up. If you are a bear who is challenging this rally, you are feeling like a broken record, coming, you are going to say its a stupid bubble, but we you would not have said that a month or two ago. You feel more embarrassed about that now. We have very much seen a bullish response, and i think that the confidence. I dont see the tech rally being vulnerable in the shortterm. Anna i have seen an interesting story about gold prices on the bloomberg this morning. The price could reach 800 as the virus researches demand. What is the thinking about gold . The rest of the team is very excited by gold. I was bullish earlier in the year. I am less enthused. Gold could probably do ok higgins the u. S. Dollar, but gold is higher than almost every other currency. The dollar is one of the week currencies in the world in the last three months. In a world where we will probably continue to see the , gold willeciate hold, but it does not mean it will be an outperform her. I am probably an outlier on the mliv team for being less than enthused by gold. There is a lot of volatility, and a lot of discounted assets, and we are still getting a number of drivers every day. In germany canne take their eyes off the wire card story, which is fascinating, they might be interested to see these iphone numbers coming out later. What do you make of these sentiment indicators . Are they telling us anything useful . Mark i think the big theme is european clear mines were positive while the u. S. Ones were disappointing. A better job at containing the virus, and we have probably seen a quicker pickup than was feared a month ago. The opposite story, in the u. S. , where people are much more positive, they are expecting a quick rebound, but they have done a terrible job at controlling the virus, and i think that means those emis will sink lower. I think this will fit into the bottom theme of european outperformance versus the u. S. When it comes to the iphone, i think one of the other stories weve got in last month or two is how quick the consumer recovers versus factory prices and industry prices. It gets people to produce again, but you actually need aggregate demand. You need consumers to regain confidence. That is a problem the u. S. Is going to have as the coronavirus resurgence, but i think the i think that europe will be better on that front. We will see if we get anything more positive today. Mark, thanks so much. Up next on the program, a disturbing surge. Americas top virus expert reports soaring new cases in some of the biggest states. What does that mean for your Investment Strategy going ahead . This is bloomberg. Back. Welcome 45 minutes to go until the start of the European Equity trading day. U. S. Futures are fairly flat right now. Nasdaq futures stand out to the upside. European futures more negative. Now a coronavirus search across the United States is putting reopening plans in doubt. Indicators of the pandemic spread as new cases surge in states like florida and arizona. California broke its record for the fourth time in the past week. Anthony county noting a disturbing surge in new cases in reopening states and said the next couple of weeks would be critical. Lawmakers he was cautiously optimistic a vaccine will be ready by the end of the year. Lets bring these thoughts together and see how they influence the thinking of andrew pease, global head of Investment Strategy at Russell Investments. Good to have you with us. Lets give year strategy as you digest these new headlines around a second way for a continuation of the first wave, and what Central Banks and governments are doing to combat that. What is your strategy looking like, and how resilient is it in the face of a resurgence of the virus . Positive, are quite and we are certainly putting a risk on perspective. He went back to neutral about a week or so ago once we saw the panic had passed and things had turned to more neutral levels. Right now we are looking at two big risks over the next few months. The first one is the second wave of the virus infections. But that panic with that panic, it will cause a lot more risk over the next few months. When you look at where the cycle is, and the cycle right now is very supportive for risk assets because of low inflation and low Interest Rate growth, that should starts at start to support riskier assets like credit. For now, it looks very twocited. Twosided. Anna you mentioned the election. Some analysts have said it would be too soon to read too much into the way the markets behave right now and to link that with the election in november. I wonder how the outlook for risk assets ties in around assumptions of the u. S. Election. Andrew the markets should not look to the elections just yet, give it a few weeks, but with an amount of time, i think that will become a big focus. Once we had until august or september, the elections are going to become a very strong focus. There are two areas around that. Out for a be looking democratic sweep of the senate and house and what that means for tax and Monetary Policy going forward. The second will be if donald trump doesnt look like he can win, one of the implications in particularly withstanding the trade war. Anna a lot of things to watch out for. There is a lot of uncertainty around the virus itself, around some of the reopening is planned in the u. S. , and i guess that passes on into uncertainty around corporate profits. What is the trajectory for corporate profits in the u. S. . Is there a path you are looking ahead to . Andrew the path was a recovery. Is corporate profit bottom unless this second wave turns out to be a repeat of the first wave, it is likely that we are going to have some type of recovery for the second half of the year. Stuttering because of the virus outbreak. We are seeing a recovery from the bottom. The question mark is over how strong it is. That is part of the reason we saw that aggressive 40 rebound over the last three to four months. We are seeing profit recovery, and i think that will happen. None of us are confident about how strong it will be. Anna indeed questions around that strength. We will delve further into some of your broader strategy, but just to tie up on stocks, are you trading u. S. Stocks versus european stocks . Which geographies look favorable to you, and does that link back to handling the pandemic and other matters . Europe and u. S. Are heading into the recovery phase, and it has been a really challenging call because it has been a long time since the u. S. Market has not been the it has been over decades since u. S. Stocks have underperformed. But if you look into the recovery phase, the recovery phase will pay i will favor cyclical value type stocks and will not favor so much the growth he, defective type stocks. Health care amtek have done very well and tech have done very well, but heading into the thinkry phase, i financials, industrials, materials will do well. I think we might see some rotation heading into the recovery phase over the next three or four months. Anna andrew, thanks very much. Andrew pease stays with us and we will continue to tap into his thoughts on strategy. How long until the World Economy gets back on track, then . We will hear from guests at bloombergs global and best conference on when they expect Global Invest conference on when they expect to see a rebound. I think you are going to see the economy have a very bad Second Quarter. I think you are going to see a rebound off the bottom of the third portrait. Third quarter. Come topect real gdp to 2090 levels by the end of 2021. I think the resiliency of our economy is such that we will power through this, but it is not going to be a classic vshaped. Ushapedl be more of a recovery rather than avshaped recovery. Are a long way off that in the u. S. And even much more so in the developing world. We will not have a robust Global Recovery unless all of the road is recovered all of the world is recovered. Guestse were some of the on the bloomberg invest Global Invest talking about the economic recovery. Lets talk strategy with andrew pease, global head of Investment Strategy at Russell Investments. Yesterday we saw tech stocks rallying once again. The nasdaq very strong. If you look at the relationship or the outperformance of growth versus value, you can see it is outperforming now more than it is during the dotcom boom. Pauseer if that gives you for concern around valuations in tech or whether the tech rally can continue. Andrew we are seeing a lot of the tech giants power through this covid crisis. Have seen hints of a cyclical recovery taking place, particularly when i look at ,hings like the dollar index starting to come into weakness now, which is hinting toward the fact that we are headed toward some type of rotation. We have seen a recovery and a turning profits that is a checkbox turning profits. That is a tick box to show that valuations should start turning around. Recovery is typically the best time for value stocks to perform, and i think that relationship should hold over the next 12 months. Andrew, is what you are seeing with the dollar telling you if what youre seeing with the dollar is telling you about the stallard to have the recovery phase, what does that tell you with the fx market more generally . Do you move into the types of sees that benefit Risk Appetite is higher . Andrew that is the play. The choices become a little more straightforward. The dollar index has been quite high. The dollar index starts to turn. We know that there is a lot of stimulus that is going to be playing into the chinese economy , so that leads to a trend in Commodity Currencies like the aussie dollar and kiwi dollar. More generally, as the dollar index starts to turn, that should provide a little bit of headwind for currencies like the euro to have a bit of outperformance as well. You make of the u. K. s stocks . It makes me think of energy and the weighting towards energy and Global Players that you have on the ftse 100. But thinking about u. K. s stocks more generally, what do you make of them at the moment . I have noticed that the discounts to global stocks is very extreme right now. You Bf Management citing that is one of the reasons they quite like them. What do you think of the u. K. . All the brexit uncertainty, the u. K. Market has been unloved for a long time. Across all major regions, the value. Ems a pretty good from a longterm perspective, the u. K. Is a great place to be. On a shorterterm basis, there was not not much to go off of, particularly in this basis of brexit uncertainty. It is hard to be super certain about someone on a new term basis, but years in the future, i think the u. K. Has the ability to be one of the better performing markets. Anna thanks for joining us. Andrew pease with Russell Investments with us to talk about various investment themes this morning. On whatet very focused is going on with virus infections right now, but also Corporate News stories of interest to us. One of those is round wirecard. The former ceo is arrested. Up next, we are live from germany with the latest on that story. Also keeping our eyes on what is going on with futures markets. Minutes or so, about 0. 7 . This is bloomberg. 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. Almost as easy as having those guys help you move. We are those guys. Thats you . 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 to the european open. 30 minutes until the start of wednesdays trading day. At the starteaker of the trading day that u. S. Futures are pretty next. Apart from the nasdaq which looks to the upside. This morning, we get the iphone survey out of germany, one of the best indicators of Economic Growth in germany at 9 00 u. K. Time. How good is the link between the sentiments indicated from these economies . We will look to that data 9 00 a. M. And this afternoon, the imf publishes its economic outlook. In april, the forecast was a 3 contraction this year. A watershed moment that will shine a light on how much british businesses are struggling. Interesting to see how many businesses pay up and pay the rent to the extent they have been protected from doing so in certain parts of the mental market. Allday rental market. Allday we will be covering the summit, the biggest names across investment. We will shed their advice for dealing with the most severe financial crisis since the great depression. It had plenty of contributions so far. We will bring you some of our best interviews over the next hour and a half. One of the corporate scandals rocking germany is wirecard, missing 1. 9 billion euros. As the former ceo was arrested by munich prosecutors, the company is facing further investigations. Germanys top financial regulator said it had reported the company for allegedly market manipulation. Lets get the latest on the tsong from the saga. He was arrested and released on bail. But is next for him . Hes the man at the center of the attention. He built the company is into what it is in good and bad terms. He was arrested yesterday arrested yesterday, obtained by prosecutors and released on bail. Hes descended fro