The other thing they are focused on is unemployment. The stimulus in europe and we wait to see what happens in the u. S. Alix the latest on twitter was gold or tesla reaches 2000. I covered gold back in the day and the coverage was google or gold at 2000. You dont want to miss this. His insight on u. S. And european equities as well as tesla. What you do before earnings . U. S. China tensions flaring up again. The u. S. Secretary of state mike pompeo spoke about the issue in remarks in copenhagen earlier today. We are setting clear expectations for how the Chinese Communist parties going to behave. When they dont, youre going to take actions that protect the american people. Alix joining us for more is kevin. What happens now . Are pushing back and they are saying in a statement from chinas foreign ministry, china condemns such an unjustified move which will sabotage chinau. S. Relations. Toy urge the United States withdraw its erroneous decision. Otherwise china will make necessary reactions. I do want to note that this is part of a broader bipartisan u. S. Shift in strategy for how they are dealing with the chinese. Yesterday there were indictments against two alleged chinese hackers who act and, according to the department of justice, and trying to get covid19 research. John, who leads the department of Justices National security division. I asked him why they are doing this. He says what the communist party is doing is allowing them to continue their criminal activity instead of acting like a normal government what, which is shutting down their intrusions. They are on call for the benefit of this date. I think of it as a onetwo punch. The indictments came yesterday, the consulate closing shortly thereafter in used in. Francine thank you so much. China we areabout joined by george magnus, author flags. Of red thank you for coming on. Weve been talking about ip theft from china for quite some time. Have things suddenly gotten bad . What is the u. S. Need to put a stop to it for political reasons . Alix i dont know george i dont know. I think there is clearly a story here. Something im not privy to. It is coming a day after the indictment of these two people on hacking grounds for ip theft rounds. Grounds. To do allegedly with coronavirus vaccine. I cant cooperate that corroborate that. I suspect these things may be related, but i think we have to wait to see what comes out of this. Yeah, i mean, it looks like an exceptional move to the u. S. Administration. You dont normally do these things unless you have good grounds and unless there is something concrete to base it on. I guess i didnt understand why u. S. Markets did not seem to blanket all. That . Er what you made of george just my hunch here is that to a degree i think markets speaking,e relatively sinoeverybody else elations. Relations. As long as this has the feel im not trying to understate this, because it is serious so long as it has the feel of kids throwing bricks at each other in the playground without im justetting hurt, using that as an example to illustrate that there is a certain degree to which i think markets will rush this off as as beingbrush this off aggravated banter between two aggrieved parties. There is always the possibility that something crops up, which is taken much more seriously. I would say where we have seen markets really blank is when when there hasis been some demonstration of the deployment of financial leverage. Against individuals and institutions associated with the suppression. Or that to happen in hong kong, there is no way that markets could ignore that. That would be a serious development. I think this is par for the course, is my hunch. Francine what does it mean for the 10year of president xi . Is crackdown on encore on hong kong. What does it tell us that could indicate to the markets how they should view this new china . George my view is i dont think it really tells us very much that we didnt already know, which is that barring some kind of revolt or serious pushback within the top echelons of the communist party in china, xi jinping is ensconced in his position. Remember, a couple of ational Peoples Congress goat term limits were removed. Hes already got the power to stay chairman of the communist party and head of the military commission for life. He could be president for an awfully long time, if not for as long as he lives. There is always the possibility that rising pushback against china abroad, particularly in the west and across belt and road countries, but more significantly pushback by important, wellplaced people inside china. We wouldnt necessarily know about that at all. It is a bit like if people remember the cold war with the ussr. He had an army of terminology just whose job it was to interpret body language and whether people were standing up for sitting down at conferences, where they were situated on parades to indicate whether the president or chairman of the party was in favor or not. We are going to have to watch this. It looks at the moment as of china as of china is in the process of losing its most important external relationship, if it is not lost already. He will have to see what happens we will have to see what happens after the elections in november. That is a serious development. It is not necessarily that he is guaranteed the position for life. Alix it is also not just the u. S. Dominic raab saying that he will work with allies to hold the cyber attackers to account. Also saying they are concerned by the evidence china did engage in cyberattacks. I wonder how you understand the interplay . Probably think this is something which is being viewed also in beijing as potentially quite serious. So long as the United States and europe and japan and south korea ,nd socalled members of the loosely speaking, alliance of western economies or western democracies was fractious and divided and they were arguing against each other over trade and so on, this played to xi jinpings benefit in a material way. If it now looks this kind of pushback against china is basically binding the United States, united kingdom, and europe together and certainly the u. K. Has been through a significant change of heart the shortlived golden decade lasted about three years is now in the trashcan. I think the British Government is nailing its colors to the mast of saying, we want to engage with china, want to do commerce, that has to be on different terms and with redlines observed on both sides if there is to be reciprocity in treatment. But also in europe. Not all European Countries are coming around at the same speed. Certainly in russells, paris, berlin,ome degree in merkel is behind the pack in terms of where she is situated, gradually i think europeans see china as a threat to the world order, loosely speaking. Thatlso to the prerogative german and European Countries have without being affected by intrusive or interference by Chinese Companies. To catch upgreat with theo. Thank you very much. That is george magnus, ox of the university oxford. Coming up, the u. S. Is ordering 100 million doses of a vaccine. We are going to talk to dr. Wilbur chen. This is bloomberg. It will probably get worse before it gets better. Something i dont like saying about things, that is the way it is. We are employing Young Americans s and other indoor gatherings. Be safe, the smart. Trumpthat was president and his first Coronavirus Briefing since april. California now surpassing new york the most confirmed covid cases in the nation. And shares of pfizer are rising after the u. S. Ordered 100 million doses of a vaccine. Joining us now is dr. Wilbur chen. He does is a member of larry hogans task force. Thank you very much. A real pleasure. I want to focus on the vaccine potential the u. S. Ordered. On hundred million of these doses from pfizer. They said they could make more than one million doses. We threw a realistic timeline. Dr. Chen i think that is a great question. We have a number of vaccine candidates in the running right now. We are in the final stretches where we are planning on having the efficacy trials in the fall. Some of them are starting up at the end of this month. By fall we should be having phase three. Which means we might have efficacy proven for some of these vaccines, including the pfizer vaccine. Licensure that the might be sometime in winter. Im not sure if that means december, january, or february that is the timeframe i am looking at. Once we have licensure, manufacturers have to make those doses available. We heard about 100 million. We hope those other manufacturers are also going to be successful, bringing many more millions throughout the u. S. Alix what if we cant have a vaccine . There was a report yesterday saying, if you catch covid19 and have mild symptoms you have antibodies but they fade quickly. Are the antibodies that are made by a vaccine different to those . Dr. Chen we hope so. We havent tested that and that is what we will be evaluating come this fall with these efficacy studies. It looks like that natural infection, more symptomatic you are the more antibody response we are seeing. If you have less symptomatic sees you have a much lower antibody response. That is only part of the equation. Scientists also look at the immune response which is those t cells. Those are also important and may in fact be part of that efficacy we will see with either infection or vaccines. Alix dr. Fauci was on an abc affiliate talking about treatments likely to come before a vaccine. Are we about treatments, talking about something that is going to help you if you are on a ventilator . Are we talking treatments like i have it, i want to get the pill and i will feel better. Dr. Chen i think that we dont have treatments available that are oral treatments right now. The ones ive been hearing about ones that are injectable types for hospitalized patients. Or they could be taken orally, but they are mostly for severely ill patients. Nothing like an antibiotic which can be taken as an outpatient that i have seen that will be efficacious. We are seeing improvements with a lot of these drugs that are being evaluated, but again i dont think have a panacea pill. Francine can we keep control of the virus if we have a treatment that works . How much worse will it be then flew if you have a treatment that, for the people who are severely ill they can survive . Dr. Chen thats a good question. Im not sure. Of thent evaluated all different permutations of combination therapies, so we have seen that lowdose of steroids can be helpful. Weve seen that remdesivir can be helpful. Those alone have not shown that we can completely avert hospitalizations for deaths. It does make a significant improvement in those numbers, but it doesnt present a panacea. As we think through the 10th therapies we are looking at, none of them are a cureall that are going to get us completely out of this. Tools in theful as toolbox for doctors to be able to treat patients. Again, i dont see any of this is a cure that will help us avert the disaster this fall and winter. Were eaking of, you are also on the Governors Task force. Can you give me a sense of how you are rising him to open, what not to open, how to deal with school . Giving himeve been the scientific advice and he has been running with it. He has been a governor that has been readily accepting and eager to hear from scientists about all of the elements the developments. Systems,r local school in my county we have decided we are going to go with virtualonly for the fall semester. Other jurisdictions throughout the state are taking making their decisions even this week or next week. Very soon. Governor iso our looking at all of this information and the trends nationwide that are showing we are seeing an uptick in cases. Thosedriven primarily by younger adults that are probably engaging in social gatherings, going to bars and restaurants, perhaps not adhering the best to masking universally went together. Again, we are trying to message out to the public about the importance of this. Francine dr. Chen, thank you so much for joining us. Coming up, we have plenty more on corporate news. Wirecard chief executive is arrested. That is coming up next. This is bloomberg. Love live from london, im Francine Lacqua. Lets get onto wirecard. We turn to the troubles at wirecard. Former chief executive marcus brown and two other officials were arrested as prosecutors say the company knew about massive losses as early as 2015. Joining us now is karen. Thank you so much for joining us. Exactly what does that mean . Does it mean other people will be implicated because they tried to cover it up . Yes, it means that prosecutors after four weeks of dig down aon really bit of more information. Apparently they have a witness who has implicated the three. For markus braun it is bad news. He was out on bail and now he was rearrested. To zero chanceed of getting bail. Alix what does it mean for any sort of sale for the company. If they want to sale sell assets . I think wirecard filed for bankruptcy. Insolvency administrator and charge who has the tough task of cleaning up the mess and the books. Really showing people who may be interested in buying stuff what is really there, what is worth it. I think there are probably some efforts that are attractive. Arent think the arrests putting a bad shadow at this process. It certainly doesnt help, but it is also not totally making things too complicated for that part of the affair. These companies have auditors, right . Is it time to audit the auditors . If this happened as far back as 2015 . Strand is the other big and discussion. Is a really bad story about auditors. There is a lot of criticism about auditors. They have been regulated by a huge auditor who signed off on the accounts for many years. They have also gone into the offensive and have sent, we have been criminally defrauded ourselves. All of this has to be cleared up and i think tough questions also have to be asked in terms of what existed. Alix such an ugly story. Thank you very much. We are heading into the close of european trading right now. Hey pretty ugly day. Underperformers down by about 1. 3 . The dax holding up relatively well. We are going to break that down as you have Precious Metals flying as there does seem to be some kind of bid into safe haven assets. We will break that down. This is bloomberg. I am live from new york, alix steel with Francine Lacqua in london. This is the european close on bloomberg markets. Stocks finishing up in red european trade. The cac 40 the under performer. The dax lower, but just by. 5 . I wanted to point out the ftse, off by a full percentage point despite the fact that the cable rate is getting hit flat. Switch of the board. Something interesting. If you look at equities, that is risk off. You look at other Asset Classes it might tell a different story. You are getting a bid into the german bond market also into italy with yields lowered by six basis points on the 10 year. The euro staying fairly bid, at one point hitting 1. 16. Those see more risk on. Are we seeing a change . Is the euro becoming a risk safety asset . If gold futures are telling you anything, the answer should be yes. Gold futures up a full 1 . Silver up at 22. Are we seeing a sea change in what constitutes safe haven assets and what does not . Francine european stocks are falling for the first time in four days. Yesterday they were there the highest level since the beginning of march. Some people are saying it is just a bit of profittaking, but overall you can see the renewed u. S. China trade tensions are pulling down significant industries. I am looking at energy down, im looking at travel and leisure, there are concerns tension between the u. S. And china would translate to a bigger trade dispute. The stat i am looking at is melrose industries, down 17 after predicting it would broadly break even in 2020. It did scrap its interim dividend and that put a dampener. It is finishing off 50 lower. Freshnillo gaining, and abb is the other out performer. Getting more than it is now but it is now up some 2 after the automation gear supplier results beat analyst expectations. ,or more on the European Market lets see what the markets are thinking. Katrina dudley joins us now. Katrina has approximately 1. 5 billion of assets under management. Thank you for joining us. What are the markets focusing on right now . Patchy, we do not know where trade is going, it is all of the focus on stimulus . Katrina the focus is what we had agreed on earlier in the week, which is the European Recovery Fund. This is a significant step forward for europe. We have a combination of loans and grants, which meets the needs of the frugal four. It also gives support to some of the economies, particularly italy and spain, which were hardhit by the covid crisis and the grants there would be made. We think the European Recovery Fund is a big turning point for europe. It is a First Step Towards fiscal integration, and there are other positive parts. We can talk about the green bond and other measures theyve implemented. Howd francine alix do you make that into a strategy call . You bet on green stimulus or do you bet regionally we know italy will be a big beneficiary. How do you think about it . Katrina there are a few ways to do it. You could look to buy Something Like a cheap asset in italy. Unicredit is a banking name we own which traits that a significant discount to book value. Obviously the risk is now reduced that you have these grants. The second part is the green bond. We have listened to various countries, for example greece was saying if they get the money they will spend it on doing things such as renovating buildings to reduce energy consumption, investing in 5g. You are looking for companies that will benefit from doing that. We like to own things like picks and shovels. This time we will own something was is which is a distributor of the picks and shovels. It is an Electrical Equipment to stupider that will benefit as these green bonds are used to upgrade buildings and reduce energy consumption. Francine what can you tell us i know there was so much optimism in the market given the eu Recovery Fund. In terms of the actual transfer gdponey, it is only. 7 of if you do all of the calculations. Do not worried we could have nonperforming loans in italy and other countries as long as we do not have a vaccine . Longerterm, will the markets be looking at th