Onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Vonnie it is 1 00 p. M. In new york, 6 00 p. M. In london, and 1 00 a. M. In hong kong. Welcome to bloomberg markets. Here are the top stories we are following from around the world. Ecb president Christine Lagarde five to support the euro economic recovery from coronavirus all not. She vows to maintain the flood of liquidity that has so far calmed markets. Morgan stanley wraps up the week for bank earnings. Big gains for the trading desk. Helped thedfall that group survived the brunt of the pandemic. The u. S. ,ntioned, u. K. , and cannot say russian state intelligence is hacking into research enters working to develop a covid19 vaccine. We will dig into the reports. Lets get a quick check on the markets. Certainly a risk off day. 500 off of itsp lows of the day, still down about two thirds of a percent. The dollar index, not too much reaction to the ecb but it is lower in that range above 96. The dow is up half a percent. Bank of america is down two point percent. Let me go back to the dow. That is the transportation average. Today butare higher cruise liners and airlines are lower. Read into the prevailing may be morehat rail safe, at least for the moment. European Central Bank Policymakers left Interest Rates unchanged today. Shestine lagarde saying will not let Monetary Policy be constrained. She also says the ecb assumption is that the Recovery Fund will be approved. An ambitious and coordinated fiscal stance remains critical in view of the sharp contraction in the euro area economy. The governing Council Urges further strong and timely actions to prepare and support the recovery. It is important for the european leaders to quickly agree on an ambitious package. Vonnie joining us now is james athey. She could not be clearer or more appealing in her sincerity. Why is it taking so long, why cant the different parties, including the dutch agree that this is necessary now . Good evening. If only it was so easy in european politics. Europes future was to be decided by the views and desires of the Political Class in europe , then these things would have been put to bed and decided a long time ago. Unfortunately, there is this inconvenient reality, which is democracy and the electorates that the leaders represent. That is where you run into problems. Again, neutralization was not something that was sold to electorates, neither was dramatic hardship which would come with an internal devaluation and a lot of structural reform. If none of those things happens, the eurozone bumbles along. In this case, while there is a huge crisis facing us globally, that still does not mean that you can just me as the domestic electrics in northern europe. To be colloquial about it, their hard earned tax money is not just being sent to southern europe, which they bowed would never happen. Danced to go through this to try and find something which nobody is happy about that everyone can accept. Vonnie these electorate are not immune to the coronavirus. In the netherlands, 7. 2 unemployment, looks like it will be there for a number of years. Not the worst in europe, and that means Something Different in the u. S. , but nonetheless, all the countries will benefit from anything that comes out fiscally, whether it is neutralized or not. James not necessarily. The way this is being structured, countries like the netherlands will be contributors. When you look at france, which was in one of the weaker positions, going in with large deficits, not great cyclical growth, need for reform, unhappy population, a lot of supply coming into the market this year because of the deficit. Then france becomes a net contributor into the fund, so that the money can be transferred into countries that have been even harder hit by the virus. It is right, given the monetary , have a in place dramatic problems in any of the countries or the region as a whole is bad for everybody. But to go back to the politics of this, it is a tough or sell to argue that the netherlands writing a check to the european hand over to larger countries is necessarily an easy win for portions of the electorate. Not all of them. But with an election not too far away in the netherlands, the Prime Minister these to make sure that he is extracting as much as possible from these negotiations so he has something that he can go back on to his domestic all the current and pitch as a success. That is why this is a political process and why it takes longer than is desirable or the Financial Markets or the economy. Vonnie does the ecb need to change its base case . If not, they will need to find a channel that will work. Publicly,course, menem lagarde, as someone experienced in these matters, now representing the ecb, will be positively bullish. I think that is right, there will be some agreement. It will not be everything that everybody wanted. I dont think she necessarily needs to change her assumption. Its about timing, whether we see an agreement as soon as this weekend, is an open question. , suggesting that the agreement was not guaranteed. We also saw some headlines saying there was not unanimity on the governing council about it, somethingf that she pushed hard in the conference. As always, there is new ones in these things. I dont think the ecb needs to change its assumption at the moment. We are in the mediumterm structural damage. It is difficult to judge at this point. Markets are calmed. Investors for the moment are seeing things halffull. Watch and wait from the political side of things. Vonnie not too Much Movement in the recent days. The euro trading above 114. In bonds, maybe a Little Movement in the u. K. Basically, pretty calm markets. What can you do to take advantage of this downtime . James from an investment perspective, it is difficult. One volatility is this love, Monetary Policy is in stasis everywhere and no movement in the front end, and at the long end, it is becoming less interesting, even with all of this Government Bond supply, we are heading into summer anyway, Central Banks are pretty regular in terms of their interactions with Financial Markets, it is tempting to say that where you want to own and carry. Ution from that strategy. I still think we are in the environment where the volatility of volatility is high. I would rather be asymmetrically exposed to safety rather than risk. There are some things you can do with Central Banks being supported with rates out five years, but you can still manage the steepness in the forward curve. Hunkeringou are just down and looking for better opportunities. Vonnie we have to ask you about britain. More murky for the rest of the year as to what will get done trade wise, brexit relationshipwise. Right now, even the Monetary Policymakers dont know what is coming next. Do you invest in britain . James longterm im very bullish u. K. The opportunities that will present themselves over the longterm future or a u. K. Economy, which will do some we have a strong institution, rule of law, flexible economy, well resourced economy. Theres a lot in favor of the u. K. In the medium and longterm. Of course, in the short term, brexit will be destabilizing anyway. In this environment, it is a drop in the ocean compared to what is going on with economic wherewns, with job losses they are, massive damage to economies everywhere. Shorter term, it is difficult. I am biased to be positioned defensively because there are difficulties ahead. It is actually a market that we are short relative to markets where we see about it in owning duration. I would rather be defensively positioned. Term, medium and long attaching yourself to assets that will benefit from the u. K. s transition to an independent economy is very attractive, and that means sterling has a long way to go strengthening. Vonnie a pleasure speaking with you, james. Coming up, the global rate for a vaccine. The latest on the search. And how Russian Hackers are being linked to a bid to steal vaccine data. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. The u. S. , u. K. , and canada today said russian state intelligence is hacking Research Centers in order to steal vaccine data. Meanwhile, shares of moderna are rising for a fourth day after earlier trials of the vaccine produceirm to antibodies in the 45 patients tested. For more on these companies benefiting in this race, we are joined by nina deka, robo global analyst. One of the interesting things about robo global is that it manages a health care, technology, and innovation etf. 24 year tois up date, even as the s p 500 etf is up 2 . Welcome. Let me ask you about these companies chasing a vaccine. We see the latest company each day the latest each day we hear about get results. Yesterday, it was moderna. A study had shown results in may. Is there a danger to trading these companies right now . Nina i wouldnt say there is danger but what i would steer people toward is looking at the longterm investment pieces of these companies. You mentioned the etf which moderna happens to be a member. The reason we elected them to be included in the etf is that we are looking at the bigger picture. Hype around the Coronavirus Vaccine, the bigger part of the companys story is going unnoticed. This is the 10th vaccine that they have in the clinic. With every vaccine they have brought to development, they get smarter and faster, which is why they were able to bring this Coronavirus Vaccine to the clinic so quickly. Ai with every use step of their process, which cuts down on thousands of hours of manpower. And the company focuses on a new type of therapy called mrna. Today, there are no commercially scenes on theback market, but once it is approved, then everyone can get excited about all of the other therapies in development. Drugsa has 20 other mrna in development. The 84 as you look at companies in the etf that you cover, what other companies have a good shot of arriving at, not the vaccine, but in addition to the search . Nina one thing you want to know about the company is looking to make a vaccine is that most of them cannot do it on their own. They have to partner with somebody to help them develop or manufacturer. Aderna has partnered with commercializing Drug Manufacturing Company based in switzerland. They have also partnered with another company to help them manufacturer for Clinical Trials and beyond. There are a lot of other companies that stand to gain from this. The United States has allocated 10 billion to help accelerate development. They have not just invested in one company, they have invested in a few. A lot of these companies have to partner with other companies. If you look at where that 10 billion start to get allocated, it gives you an idea of the broad array of companies that stand to benefit from this funding. Vonnie genomics robotics, telehealth. How concerned are you about the idea that russian intelligence is trying to hack into Research Centers . Could it be detrimental to their efforts . I know the j j cfo spoke about it this morning briefly at high level, saying Data Security is a large part of their overall focus. What i will say is, as the world gets more and more digitized, as Health Care Gets more and more digitized, we will be exposed to that type of risk, as we have been across every other sector that has gone to the cloud, digitized over the last couple of decades. It is something that we have to be aware of. Want to be investing in companies that are paying close attention to cybersecurity. Vonnie is there a point at which you want to get out of these companies as an investor . We are all watching them as human beings, hoping that Better Health care and vaccines armored from these efforts, but as an investor, with a 25 gain in the etf, should you cut and run . Nina i wouldnt think so. We are only getting started, particularly in health care. If you look at telehealth, we are still in early days of overall virtual care adoption. In the next 5, 10 years, virtual virtuallyunderlie every facet of Health Care Going forward. We have only scratched the surface over the last couple of months. There will be broader use cases of adoption for surgical robotics, and then potentially using the internet and 5g will expand the use, so that you can rgery and potentially reach people who cannot get to a hospital, in rural parts of the world. We are in early days. As we see further adoption of 5g, Better Internet service, key medication platforms, we have just scratched the surface of health care innovation. Genomics, gene therapy, there is so much more to come, in cancer therapy, diabetes innovation. Vonnie looking forward to seeing you again soon. Hopefully we will know more by then. Nina deka, the robo global senior analyst. On the race more for a vaccine in the latest edition of bloomberg businessweek, which is on newsstands today. Morgan stanley seeing its best quarter on record or profits and revenues for profits and revenues. We will discuss in todays stock of the hour. This is bloomberg. When we design was a business that in times of severe stress would be fine, and when markets are active and volatile, we would still perform across the banking franchise. This was that crisis and this is what we delivered with a 50 plus roe. I think invalidates the strategy, but it is our strategy. It is not for everybody. Vonnie that was james gorman speaking earlier. Morgan stanley is our stock of the hour today. Joining us now for more is scarlet fu. Scarlet another Bank Delivering big. Morgan stanley posting its best order on record for revenue and profit. Like Goldman Sachs and the banks before it, trading revenues surged. Total, they posted 30 billion in trading revenue. Or morgan stanley, it was up 60 versus last year. Trading was a star, almost tripling from last year. Morgan stanleys recent success was in its stock trading operation but they rely more on its prime brokerage business and unds. Ies with quant f they were less actively trading in the Second Quarter compared to active ones. Morgan stanley lost that equity crown to Goldman Sachs in the Second Quarter. Vonnie the stock has been performing interestingly today. It is the best performer among the five biggest banks. Having said that, it is only up 3 this year, reflecting the struggles that all the financials have taste. Was talking about their strategy coming out of the Wealth Management crisis. Managing other peoples money and taking a percentage of the assets they hold is a more reliable source of revenue than depending on volatile market conditions. We heard from banks in the past that markets were not volatile enough, or bad volatility did not lead to a surge in trading. Wealth Management Revenue rose 6 in the Second Quarter. Analysts were looking for a 10 drop. Morgan stanley is still on track to close its a trade deal. They see that acquisition as giving them more digital offerings and bolstering margins, which it anticipates overall should be in the 28 to 30 range. James gorman also said that he is on the lookout are possible acquisitions as well. Vonnie thank you. Coming up, retail recovery. U. S. Retail sales surging, but what is the data really saying . This is bloomberg. Mark im Mark Crumpton with bloomberg first word news. House Speaker Nancy Pelosi says she is confident congress can pass the virus relief package in the coming weeks. The speaker said she believes republicans will ultimately agree to spending levels closer to the 3. 5 trillion democrats are pushing for. Republicans have agreed at least 1 trillion is needed. Both sides are set to begin negotiations on further stimulus as early as next week. A shakeup of president trumps struggling reelection campaign. Manager Brad Parscale will be replaced by his deputy bill stepien. The move comes as a new Quinnipiac University poll gives joe biden a 57 to 36 lead over the president. It also said more Americans Trust bidens new a better job on the economy. Scathing mary trump memoir about her uncle has sold a million copies on preorders alone. Simon and schuster said the book ind a record 950,000 copies combined print, digital, and audio editions since earlier this week. Another trump expose from john nearly 800,000 copies in the first week of its release. The president tried to block both books from coming out. Judges in each case denied requests for injections. In a sign the coronavirus maybe dissipating in the city that was africas first virus epicenter, Health Officials moved to reduce the capacity of a covid19 Field Hospital in cape town. A decline in the number of patients from to the decision. Nick woodman from the facility will be sent to other parts of the country, including johannesburg, where virus cases are surging. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Amanda im amanda lang in toronto. Welcome to bloomberg markets. Vonnie im vonnie quinn in new york. We are joined by our bloomberg and