It will have to wait. The word from u. S. Congress as the next tranche of stimulus may not come until august. President trump holds his first briefing and says wearing a mask is patriotic. And mixed picture for stocks but the euro holds onto gains after hitting an 18 month high as european earnings continue. Beatics company abb estimates and we will speak to the ceo shortly. And elon musks next payout. The tesla ceo qualifies for 2. 1 billion more as the market value reaches another new milestone. The big test comes today as they report earnings. Under one hour away from the start of cash trading in europe. Lets take a look first off at futures. They are down. Looking at jobs of about. 25 to. 33 . The euro is one of the most interesting stories today. What do you see on the gmm . Got a little bit of weakness coming through in the Asian Session, down. 2 . Some breaking news. I mention it because it is good news. Operating, a business in u. K. Retail, i had to read this twice to make sure i was seeing it right. They say their half year is ahead of the prior year, which is quite something even where we have been. Kingfisher is continuing to experience strong demand. Back to that question around the gmm, what we see on the screen coming through is that the Asian Session is quite mixed. We see a move to the downside driven really by us trillion, singapore, both by australia, singapore. We see a little bit of weakness in the dollar. We do not have a very obvious riskon, riskoff theme going today. I will mention on the gmm what is going on with silver, up 5. 6 . You mentioned it moments ago, the highest since 2013. And gold up above 18. 50 an ounce. Real strength in precious metals. Lets get the bloomberg first word news update. Laura President Trump is rebooting his virus briefings. The president urged americans to wear masks and avoid risky behavior. The official u. S. Death toll the virus has topped 140,000. Cases are still growing, particularly in southern and western states. Recovering from a mild case of covid19 may not offer much lasting protection. New analysis of 34 patients who did not need intensive care saw antibody levels fallen quickly. It is raising concerns over the durability of a vaccine and the ability to research socalled herd immunity. The u. S. And u. K. Are signaling work awarded action against china. Visiting the u. K. , mike pompeo says he wants to build a coalition that understands the threat posed by beijing. Speaking with his u. K. Counterpart, they say further action may follow the g7. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Matt thank you very much for that. Mixed amide uncertainty over the timing of fresh u. S. Stimulus program. Indeed, really as people do not expect it to come for a while. The dollar extended losses while gold soared above 18. 50 an ounce. Get into it now would lower cooper. With laura cooper. Does not look like we are going to get multi dollar u. S. Stimulus until at least august. What does that mean for markets . Laura i think markets have been pricing in the expectation of an extension of the u. S. Fiscal package. He fact we are potentially not seeing it come through before the benefits expire at the end of the month is shaping risk appetite. That is why we are seeing u. S. Stocks extending today. Adding on top of this, these warnings coming from the u. S. Administration that the worst is yet to come for the virus. So really the backdrop today looks to be one of a riskoff on these factors. Let me ask you about what is happening with precious metals. Gold over 18. 50. Silva rocketing higher. What is the backstory . Laura it is certainly remarkable, the moves we are seeing in gold and silver. I think really what we are looking at that thats the backdrop is the perfect recipe for silver to reach the highest in seven years and for gold to be on pace to touch these alltime highs. Tumbling,e dollar is we see real yields are falling further as Inflation Expectations begin to climb back. All of this is being underpinned by this exceptional flood of stimulus from central bankers. So when we add on top of it the virus uncertainty, it is no wonder that we are seeing these haven demands. Certainly when we look at the complex between gold and silver, what is interesting is silver has significant room to catch up the gold because it is both an industrial metal and a precious metal. So there is the added benefit to the price momentum given the fact we are seeing these supply constraints as well as demand picking up for the incorporation into industrial demand. Its likely we could see this momentum propel further, even if we do see nearterm bouts of profittaking. Day your question of the on the blog puzzles me. The question of the day is tesla the worlds most valuable carmaker . Well, it is worth like four volkswagens. Tesla is worth more than volkswagen, toyota, and hyundai all combined. So, yeah, theres no other carmaker in the world worth nearly as much as tesla. Whats the question mean . Laura the question really reflects just the conundrum that is facing markets right now, because when we look at tesla, it is a company with scant revenue and profit. But on market cap, it is the Worlds Largest carmaker now. When we look at the profit side, its profits were about 10 of toyotas. So clearly when we see itsuations of 320 times forward earnings relative to 20 for a company like toyota, one has to wonder whether these frothy evaluations are justified. But from a Broader Market perspective, the risk is whether this shape in terms of the momentum in the stock will contribute to broader risk on sentiment with earnings coming. An exceptionally popular retail trade and that is contributed in part of the price action we are seeing. So if they do come out with a downbeat earnings expectation, that could actually shake this momentum we have seen on the retail trading space. Or conversely, have the opposite effect. Earnings are crucially important going into this for the company and for the Broader Market as a whole. Anna laura, thank you very much. Marketting to see if the approaches it differently and values it differently. We know at the moment what tesla is worth. Thank you so much for joining us. You can reach out to us and get involved on your bloomberg if you want to get touch with us and have your say on the question of the day. Do you like the question or not . Coming up, abb reports secondquarter numbers that Beat Estimates. We discussed the results and the outlook live from zurich with the ceo of abb. This is bloomberg. Anna welcome back to the European Market open. We are 45 minutes to go until the start of the cash Equities Trading session. European equity features point a little to the downside. Earnings season continues. Engineering company abb has Beat Estimates for the Second Quarter. The company is seeing some improvements in orders in the First Quarter but still expects revenue to be strongly impacted. Lets go to manus cranny in zurich. Manus good morning. We have the ceo with me here. Hisrn rosengren, its turn this morning. Bjoern thank you for having me on the show. Manus the iconic brand that catches my eye, these margins are what the market will focus on first of all. 10. 6 . But that in context. Bjoern when we went into this quarter, we knew that would be challenging. Started also communicated that before. Now we think we ended up with a margin that is better than we expected, but mainly driven by strong cost mitigation and all our businesses, but also in extraordinarily good quarter. Manus you say it was a hard look down and you look through the numbers. Europe, the usa, all those numbers under pressure. What improvement and visibility can you give us . What is the momentum as become out of luck down . Down inwe saw 23 orders in north america. In europe, which of course is home here, around 40 down. China, we saw positivity. A good recovery in that part of the world. Manus is there a sense of relief in china . Talk about supply and demand. His production back at 100 in china . Bjoern i think their activity is absolutely good. Of whattching up a lot was lost on the First Quarter. How sustainable that will be in the future i think very much depends on the rest of the world coming back to start recovery. China is also dependent on the rest of the world, not only their own market. Manus how synchronized is the recovery . Bjoern it is difficult. Covid is still active in many spots in the southern atmosphere but also north america. Of course it makes people nervous. It is not good for any kind of market. So its challenging for us and we need to see improvements in the coming quarters. Manus you say cost mitigation is what drove this quarter. What the markets want to know if you have 18 divisions, five did not hit the target. So where is most at risk . Is it the lowmargin businesses that you probably want to probably on this quarter we can see which is very rare compared to normally. Service in a downturn, business is the most resilient part of the business. Im very pro service business. Now when you have a shut down we have a different situation. It is sometimes difficult to conduct service. People moving between different countries. What we see during this quarter is to serve business, which normally is the resilient part, is having more challenges. When we look at the different divisions, it is important what kind of segments they are operating into. Which isbout robotics, very much exposed to the Automotive Industry. That is also why we see 25 down in both orders and revenues. That is the bigger part of the business. We also see oil and gas market by lowering the prices of the oil. See thesee need to segments coming back. Manus if we look at those some underperforming businesses, the marine propulsion, supercharges, the market wants to get some indication from you. You have a turnaround strategy to deliver to these investors. Are these the kind of businesses that will come under the microscope . Bjoern i think it is too early to give any indications. We will be back during the market day in november and talk more about it. I think when you look at these businesses, you were mentioning the dodge business, a very u. S. Business. We also have an installation an insulation product. Yes, they are more effective when it comes to volume, as they are operating in these markets. But i think this is temporary. Now we need to look beyond covid and the direction. Where are these businesses going to drive and where are we going to create value Going Forward . Manus are you concerned the auto business is fundamentally scarred, or theres a risk of that happening . The Automotive Industry is going through a shift. Of course with the old combustion engines, moving moreover to electric. If we look at our exposure to the Automotive Industry, it does not really matter. We are more in the Assembly Lines were robots are operating. So i believe that that part of the market will be very interesting Going Forward. Manus i mentioned activist investors when i was talking about your company earlier. Those conversations, how much time are these activist investors going to give you . What is realistic in terms of delivery for them . Bjoern for me, i do not separate are normal investors and activist investors. We all have one common goal, to make sure abb delivers value for our customers, but also for the shareholders. That is my job and that is what we need to drive forward. I think every shareholder needs that. Manus do you need to do acquisition or divestment to shift the share price . Bjoern i think i have been very clear when we met during the 10th of june. We made numerous large acquisitions which are still not operating on the levels we need. So our main focus now is to get our operation and the Profit Margins to the right level. I have been very clear to you and to everybody else that i will not be satisfied before abb delivers. Bjoern manus to close, the margin beat was driven by cost efficiency. Natural bloomberg question, cost efficiencies, more to come . And does that mean you have to reduce headcount . Bjoern it is a very special time. We talk about shortterm challenges and longterm opportunities. We need to take us through this challenging time, and we are doing that with from kinds of cross measures. Some of them are temporary. We are trying to keep costs under control. The important thing is when we get out of the covid19, is that where are the demand levels in the market, and that is what our businesses need to adjust their structure for. This will vary between the different segments where we are operating. Manus thank you so much. It is a pleasure to be in your building with the. Thank you for inviting us in in these challenging times. Global and touches so many points from the u. S. , asia, and the core of europe. Suffering under lockdown, reemerging. Good morning. Matt thank you very much manus with the ceo of abb. Coming up, President Trump shifts his tone in his latest virus briefing, as the word from washington is the next round of stimulus will have to wait. We will get the latest from washington. This is bloomberg. This is bloomberg. Welcome back to the European Market open. We still have 35 minutes ago before the start of trading. Cash equity futures showing some weakness. Incks trading fairly mixed asia amid uncertainty of the timing of fresh u. S. Stimulus program. Senate Majority Leader Mitch Mcconnell poured cold water on the hopes of a new rescue plan could be reached before some current benefits expire at the end of july. Oining us for more good morning. It now seems unlikely a new stimulus plan will be reached before existing benefits expire at the end of the month. So what is delaying a new bill . Annmarie part of it is that the republicans need to get their own house in order. The republicans for the most part agree with extending measures that are as you say, on the edge of a cliff about two dry up, like the personal paychecks, jobless benefits like the 600 week checks. Some republicans say that does not incentivize americans to get back to work and the need to reduce that number. But for the most part they think money should go towards testing. But some republicans are skeptical about a payroll tax cut. President trump warned without that he might veto the bill. Until republicans and the white house get on the same page, republicans cannot debate in earnest with the democrats. And right now republicans see the stimulus bill costing some 1 trillion while democrats are aiming for 3 trillion. While Steve Mnuchin and mark meadows have said they can get a deal done by the end of next week, when politico asked Senate MajorityMitch Mcconnell about it, he laughed. So clearly this will not get done in the next 14 days. So that risks all these programs drying up. We will have to see where it ends up. But right now it looks like it will be a longer process. Matt by the way, President Trump restarted his virus briefings with a much more reserved tone, saying wearing a mask now is patriotic and encouraging people to do that. Annmarie a change of tone and a restart of these briefings, which at the height of the pandemic in new york, they brought in tums of viewership, north of 8 Million People are watching them daily. We have a shift in tone on how bad the pandemic is as well as masks. Everybody thatg when you are not able to socially distance, wear our mask, get a mask whether you like the mask or not. They have an impact, they will have an effect, and we need everything we can get. Annmarie it was a critical moment because the mask has become very politicized in the u. S. Partly because President Trump refused to wear a mask anywhere. Now he says if you cannot socially distance, it is time to wear a mask. We are also going to see a lot more mask wearing in london. In new york i got so used to having to put on a mask no matter where i what. It has been a change in mood matt wait, you can go to Grocery Stores without a mask in the u. K. . That is allowed . Annmarie at the moment it is. Matt unbelievable. Anna not from friday. Matt we have not been able to go into a Grocery Store here without a mask for like, four months. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Anna welcome back to Bloomberg Markets european open. 30 minutes until the start of the european trading day. European equity market futures suggest we will see a bit of weakness at the start of trading. U. S. Futures look fairly flat. Lets take a look at some of the events that could shape your date. The u. S. Secretary of state, mike pompeo, is in denmark for talks. Nord stream 2 will be one of the subjects on the agenda. Ecb president Christine Lagarde will participate in a Washington Post webinar. Viceentral banks president is also speaking online in the annual u. S. You symposium. David solomon joins the Economic Club of new york at 7 00 p. M. London time to discuss the impact of the coronavirus pandemic. Hasical company akzo nobel reported secondquarter income that is down 44 year on year. The company has suspended its 2020 financial targets and sees the impact of covid19 continuing in the second half of the year. We are joined by thierry vanlancker, the ceo of akzo nobel. Let me ask you about suspending your