Cash trade is less than an hour away. Here are your top headlines. Republicans unveil a 1 trillion aid package to bolster the u. S. Economy. More direct payments to americans and Liability Protection for businesses. Keeping the borders close. Bloomberg learns the eu is set barriers to travelers outside the block amid rising virus infection rates in spain and germany. Plus, better than bad expectations. Michelin reports operating profit at the highend of estimates despite swinging to a net loss. The delivery here was one of the big delivery hero is one of the big winners. Dont miss our interviews in this program today. We are seeing the ecb, breaking news. The ecb asking european banks to freeze dividends. You can always get the latest ecb headlines on your terminal. Type ecb go for a great dashboard. The ecb is saying it wants european banks to freeze dividends for the rest of 2020. The remaining four months of the is saying ite ecb least not pay at dividends until january 2021. There is a headline from the ecb, watch your bank stocks today. Just under an hour away from the start of cash trading. Look at futures. They have come off. Earlier we saw asian stocks rising. They turned around a little. Futures gaining more. They have come off the highs we saw earlier. European stoxx 50 futures are unchanged. Futuresook at u. S. After news on the stimulus bill from republicans comes through. You see green arrows here. S p 500 futures up 0. 7 . Nasdaq futures gaining 0. 2 . Across assets we should look at whats going on with gold. Futures unchanged. Futures touched 2000 an ounce for the first time ever. Is the rally overdone . The dollar index on a lower almost into years, still above its average the past 10 years, but a bit of a comeback when you look at major peers. Eurodollar still at a 1. 17 handle. Brent, 43. 42 per barrel. Oil, freshg on with coronavirus concerns hit demand. Dollar weakness is providing strength. Senate republicans have unveiled their 1 trillion plan to bolster the economy. Includes an extension to unappointed benefits. Matt can laura hear me . Im going to go ahead and take it right now. We have breaking news out on reckitt. Second quarter like for like sales rose 10. 5 . The streetting estimates, definitely a stock you want to watch today. You are going to want to watch the entire Consumer Staples sector. Saying thealso entire year 2020 it has seen better than views had been in april as the outlook. For the balance of 2020 remains uncertain. Inhough bit of difficulty their 2020 margins, in line with current consensus, and the net revenue for the Second Quarter was 3. 3 7 billion pounds. User beating on secondquarter revenue numbers. Beating on like for like sales. The rest of the year or the entire year, better than it had been in april. Openean stocks look set to maybe a little bit higher. Asian stocks paired gains. Gold certainly did lose steam coming off its highs, record high yesterday. The dollar narrowed losses after following falling to a 22 month low. Senate republicans have presented their rescue plan to bolster the u. S. Economy. Slightly less than the democrats 3. 5 trillion plan. Mark, the issue here is that republicans controlled the senate. Is this taking a little bit of the air out for investors, the fact that republicans want to curtail jobless benefits and offer a much smaller package then democrats in the house . It is one of the concerns. The price to argue action is worrying today. We are getting the turnaround tuesday. Equities seeing a little bit of that sheen come out of them. Debate in the u. S. Is one of the issues. This was widely expected that there was going to be this partisan divide. It is not like this is a shocking event. When the price action turns slightly negative like this, people are going to create a narrative to explain it. We knew the news this morning when it looked right in the world. It is not like the situation has changed. What we are seeing is a market that is very stretched. The best example of that is earnings. Overall, very strong, yet failing to boost stocks to higher levels. Annmarie whats going to be the driver . Do you think it is going to be the stimulus bill or will it be the fed . The fed probably will not be a driver. It is much bigger overall. It is going to cause headline volatility either way. It is whether the ultimate package, it is assumed there will be some package, it is whether the ultimate package surprises on the upside. The stimulus is a larger driver longerterm. Im not sure going to read too much into the shortterm headlines. The mliv question of the day, will big tech results revive the sectors mojo . What feedback are you getting . , big technteresting have had disappointing results. It is not that they have been bad. Big tech has also beaten. The overall market has done better on earnings surprises. Certainlyto the idea they are at the forefront. These momentum trades are running out of steam even though they are getting more supportive news. Even though earnings have beaten. I think that is a worrying concept for the whole market, not just stocks. We discussed gold. There are so many markets out there that have been on this kind of momentum idea that are looking stretched. Baggage might not them significantly lower. Like if they fail to get the stimulus by the end of the week. Annmarie thanks so much to mark cudmore. You can join the debate about the mliv question of the day. Will big tech results revive sector mojo . Reach out to us at i. B. Tv on your bloomberg. Out its gop rolls stimulus proposal to kick off negotiations with democrats. We will get all the details as we face one fiscal cliff this saturday. Saturday. Matt we are 48 minutes from the start of cash Equities Trading across europe and the u. K. Futures are slightly mixed. If you look at the cac futures, very little change. Dax and 50 futures ftse futures gaining. Moderna has launched the first largescale u. S. Vaccine trial alongside the nationalist is for health. National institute for health. Make 500 million doses in 2021. The virus is eroding demand for Luxury Products and lvmh customers are curbing purchases faster than the company can cut costs. Profit came in worse than expected in the first half. Revenue fell 38 . Analysts expected to be the luxury industrys worst ever quarter. Intel has ousted its chief engineer after falling further behind in production technology. The companies chip design and manufacturing operations will be split. Intel says changes are likely to. Ccelerate production Senate Republicans have presented their 1 trillion rescue plan to bolster the u. S. Economy. Would trim emergency jobless benefits and give a second round of payments to americans. Businesses and other organizations would be shielded from lawsuits, something the democrats do not want. The plan had been delayed due to divisions within the party. We have one foot in the pandemic and one foot in the recovery. The American People need more help. Comprehensive. Be they need it to be carefully tailored to this crossroads. That is what this Senate Majority has assembled. Just the first step to negotiate a compromise. Democrats offered their own 3. 5 trillion stimulus package area nancy pelosi called the gop plan, quote, pathetic. We are joined by the chief currency strategist at dws. Thank you for joining us. The United States is approaching a fiscal cliff as early as this saturday with a 600 stimulus jobless benefit coming to a close. Can we see a deal this week . Maybe not this week, but maybe next week. The senate is scheduled to start summer recess after the seventh of august. It is expected congress can finalize a stimulus bill before that. It is not that the house and senate are not in session until september 8 and i would think both sides have an interest to get something done. Of course there is in a year where there is a highly disputed reelection going on, there will be some discussion and debate. I think that is to be expected. Think thedo you market takes the news that republicans want to reduce jobless benefits and just give out a onetime payment of 1200 instead . The republican package is a bit smaller than the democratic proposal. How do you feel about this as a starting point . If you look at the currency dynamic, i dont think we are thisy only looking at information at the moment. The election is something that has been weighing down the dollar already. The way everything has been laid out in the news beforehand, it is something that is weighing down the currency. I would not think this is what is driving the currency at this stage. If you look at the dollar, we are now at very stretched levels on the dollar index trade rate and also in regard to eurodollar. We just need this to go through as much as we need to hear the fed tomorrow to get an idea as to whether they keep on the way they articulate it. We take it from there. What are you expecting from jay powell . Obviously he is going to be very dovish. Is it going to be the message of lower for longer . It will be the message lower for longer. The market is as i mentioned, is already prepared for a more dovish message. We have been seeing how covid19 has played out. I would not think this comes as a surprise. What would come as a surprise would be the signal that there would be expansionary policy at this stage. I dont think that is expected. I dont expect it either. It is too early for communication. Matt when we see very bad news for the u. S. Economy, for example, when we saw the u. S. Aaa Credit Rating cut, investors flooded into treasuries and bought the dollar. In this case, when we see covid cases get, as some have put it, out of control, at least worse than anyone would like and the recession deeper, do you see the dollar weakening . Reply in the currency world you always have two sides to the equation. From the time perspective we have euro positive news. Fund. Recovery things supporting eurodollar on its way out. We have the german stimulus plan. We had an opening of europe after being in lockdown. From a timing perspective, we have been flooded with an understanding of how things look in the u. S. , which have been delayed. I would urge look at the other side of the equation again and try to look ahead and not only be caught up and try to extrapolate everything you see today into a picture for the next three or six months. If you look at covid19 development, in the euro, we are getting signs of the second wave of infections. Whether people would like to call it as such or not. We have cases increasing in all countries. By 50 in aggregate. The highest level since the end of may. We have seen travel Warnings Issued from the u. K. By ions have increased it was over 100 last week. Ago, the summer in thes really started eu. Everything is open borders here. Look at the numbers from australia overnight. Lockdown can be a drag on employment if you are looking at how they had to close down melbourne and victoria. Lets not forget to look at the other side of the equation. Att we are going to look second way fears outside the u. S. Next. Up, as we said earlier, maybe not reopening orders. The European Union looks set to extend its curbs on foreign visitors as countries fear a resurgence in virus cases. We are looking at eurodollar above once 117. Matt welcome back to Bloomberg Markets. This is the european open. We are 37 minutes away from the start of cash equity trading. Mixed markets with ftse and dax futures gaining a quarter of a percent. Eu may keep its external borders shut the travelers from countries including the u. S. For at least two more weeks. The bloc is concerned a resurgence in virus cases could hamper the european recovery. According to officials the eu is leaning toward removing more countries from its travel waitlist as it conducts a review on wednesday. Stephanie, we have seen real strength here on the euro. Certainly against the dollar, up to more than 117 for the First Time Since 2018. Europeortant is it that keep its coronavirus cases under control . It would be very important not just for the currency, of course, to continue with the good job that has been done. The question is can this virus be kept under control . We see howg difficult it is to control. We have seen countries that isolated themselves in terms of closing the external borders and still one or two cases are not followed through and the virus can spread very quickly. Within europe, the borders are still open. Travel season has begun. I have concerns that we would see the data going worse. If that happens, there is a very quick reassessment necessary as to how this will drive down the economic upswing that is right now priced in and talked about in terms of european neighbors to outperform the u. S. I would like to highlight, in a grave approach toward changing. The reality of things would be delayed. If you look at examples, germany for instance has delayed sovereignties as it was before until the 30th of september. Spain has waited until the 31st of december. France, companies can wait until the end of august. Changes may look a bit more rosy. This is something for when we come out of the Summer Holiday into the autumn, that is also something i dont think is discussed too wide at the moment that is a drag on the european economy and the euro. Annmarie what level for the eurodollar would start to make policymakers uncomfortable . From the feedback i hear, the European Central bank is comfortable with the higher eurodollar as long as it is accompanied by the view that european recovery is underway. From that extent i dont think be too earlywould trying to comment or refer to currency strength if it is accompanied with the positive outlook. If this is going out of conjunction, which it is not at the moment, that may be a different matter. ,nnmarie stefanie holtzejen thank you for joining us this morning. Vontobel joinsf us after the Company Announced a rise in pretax profits. You say the customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept. 5g, everybody is talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item, corner offices for everyone. We just have to make more corners in this building. Chad . Your wireless, your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch to Xfinity Mobile and save up to four hundred dollars a year on your wireless bill. Plus, get two hundred dollars off when you buy an eligible phone. Matt welcome back to bloomberg market the european open. 30 minutes from the start of cash equity trading and weve got an interview for you that you dont want to mess. Swiss wealth manager vontobel has seen growth in new money and assets under management in the first half. It said Central Bank Intervention is helping mitigate the Economic Impact of the pandemic. The company has extended its financial target through 2022. Joining us from zurich for his first interview of the day is zeno staub, the ceo of vontobel. Talk to me first about your outlook and really your visibility right now. I know it has been difficult past few months, but i think starting to solidify a little bit in terms of your outlook . All, first of operationally weve always been crisis. T throughout the looking forward from a market flighttive, there is a on the one side between the risk of the second way of of the Health Crisis and on the other side, interventions from the central bank and from the governments who have propped up markets and trying to help the economy get through the cycle, is centralrent view banks and governments will help get economies through the cycle and we will continue to build from there, but there is significant remaining health risk. Differently across the world, but serious needs, serious followup. This morning you talked about the record low Interest Rates that will confront investors. How does this impact your strategy . Is confirmation of our strategy. We have very decisively developed more moderate fixedincome strategies. Just the longduration come along Government Bond call that served investors so well since mr. Volcker turned around Interest Rates. We think it is gone for the foreseeable future, therefore what is important to clients is fixed income ability that is more flexible. We excel in a number of these, especially from our 24 boutiques in london, another important source is credit link strategy that we predominantly run out of zurich. Other key longterm implications for investors is, given the lower for longer interest environment, people will have to rethink their overall asset allocation. In terms ofu see, shortterm effects on your business, did he see a big way of a rebalancing . Were confronted by the pandemic, did they do a lot of trading, change around their portfolio . Has that happened or is that still something that is going on . Actually, we see a very limited level of adjustments in our business book and i think that is linked to our positioning and strategy and the way we partner with clients. Asset management clients, we convictionhigh Investment House and High Conviction exit strategies can only deliver through the cycle, with investoratch availability to partner through cycles and you have seen through our flow patterns this has happened with the vast majority of our clients. We have been positive in all Asset Classes and quarters in the first half. I think it makes a lot of sense to both clients and to us as a company. On the Wealth Management side, we are less exposed to lending. Our penetration of the Wealth Management book is lower in industry comparison, as we are perceived as an advisor, a wealth manager, and not predominantly as a bank providing leverage, there for our Wealth Management clients have a reduced need to adjust their positions. Private clients are very diversified in their nature and in their behavior. There was some increased level of trading, but limited on an industry expected. With seen tensions bet