The former California Attorney general because the first africanamerican woman and first south Asian American woman on the ticket. Big revamp. They will exit all noneuropean Corporate Banking activity, and they forecast longlost loanloss provisions at 3 billion euros for the year. We will speak with the cfo of abn amro. Let me get to some of the breaking news we are getting here from the u. K. We have u. K. Gdp numbers coming through. We are looking for the month of june and for the quarterly figure. We have seen a rebound in the month of june at a. 7 . That was 8. 7 . That was ahead of the estimates. Thats the rebound for june. A rebound was expected. Quarter coming in at 20. 4 . That was with an estimate of around 21 . If you look at the year on your number, its similar. Its the extent of the losses that we saw in terms of Economic Activity in the Second Quarter. We look at things for a year on your number. Officially what we already knew because of the u. K. In the session. Saw the u. K. Economy contracting the First Quarter. We then saw the weakness of the Second Quarter coming through, as just mentioned. 22 ad dropped at 20 , or looking at the year on your number. The rebound confirms for june to the extent that we have seen that 8 . The lossesextensive that weve got here. Will we see any rebuilding of the economy in the Third Quarter . How strong will that rebounding be, and will there be any slowing . We will get to the markets. We will get their thoughts on the u. K. Data. Matt joining me from berlin. We are under one hour away from the equity market. At the end of the u. S. Session. What do futures tell us now . Some redstill see arrows for futures here in europe. At the European EquityIndex Futures and you will see that they are, for the most part down. Nifty futures gaining a little bit, but less than 1 10 of 1 . And euro stocks are both down. If you look at u. S. Features futures, gains are there. Maybe investor still have not thered out what happened at end of yesterdays trade. They thought it was a fluke. As a result they are buying futures in todays trade. So you do see a little bit of a mixed picture there. But get into our markets cover with laura cooper, our bloomberg mliv macro strategist. She knows what happened yesterday at the u. S. Close. Was so. Equity trade positive and then turned around at the end of the session. What happened . What we saw and price action the fact that we had these Price Expectations in the vaccine hoax. The news out of russia. We also had a surprising the germanming from sentiment survey, but then we saw the gpi. It really had this treasury selloff in them we saw the reports that we were going to see the stimulus still may come out of washington. Cyclical shortly unwind. Anna we look for the European Markets to catch up or catch down what we saw with the u. S. What about the u. K. Data . It seems like some of the data does not touch the sides in terms of the market, it seems to be moving at such a pace. You can see that in the days we have it we have a rebound of 8 in the month of june, which means we know how dire things were in april and may. Did the u. K. Gdp move a dial . That we are seeing this come in line with estimates is not that surprising. What is interesting is looking at the Details Behind the headline figure. That is more concerning for the outlook ahead. When we look at private consumption that looks at Consumer Spending and the client more sharply than expected. While the estimate for the 20 drop in the corner is in line with the estimates, the boe is banking on a rebound in three and beyond to support this recovery. What we are seeing is the fact that households are having this elevated level of precautionary saving and they are unlikely to tap into to support the recovery. We also have the unwinding of furlough schemes and the u. K. That are going to challenge the jobs recovery ahead. Yes it is a might with estimates, ultimately this does still paint a picture for a sluggish pace of recovery ahead. That thistant to know u. K. Collapses much larger than most other Major Economies that are falling around 10 in the Second Quarter, comparable basis looking at germany and the u. S. , for example. Laura, thank you for joining us. Laura cooper, bloomberg mliv macro strategist out of london. Bloombergs first word news. Top stories from the terminal. We go back to london. Democratic president ial candidate joe biden picks senator Kamala Harris as his running mate. Black woman and first asianamerican on a party ticket. She was known as an aggressive campaigner. Legal background as District Attorney of San Francisco and then californias attorney general. Adviseruse economic larry kudlow is dismissing concerns the tensions may jeopardize the u. S. China trade deal. He said that china is substantially increasing american goods. The deal forced a trade were between washington and beijing, but the relationship has deteriorated. The explosion with United Nations is creating a crisis. It will ship 1500 thousand pounds of wheat. The blast on august 4 tour through major grain silos in the capital, leaving the country with only six weeks of flour. Activist jimmy has been released on bail. He was arrested monday under the citys new National Security law, accused of polluting the foreign forces. It comes as china plans to suppress the city. Global news, 24 hours a day, on powered byight more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna thank you very much. Laura wright in london. Up next, Corporate Finance outside europe. In a major restructuring of abn amro. We speak to the cfo next. This is bloomberg. Anna welcome back to Bloomberg Markets european open. 50 minutes until the start of the cash equity trading day expecting to catch up with some of the losses we saw only in the day. Lets get to the story around european banking. Announced a revamp of their banking. They are planning to ask that all corporate outside of europe. I will drop its tradein financing operation. They expect total loanloss provisions of the year to rise to 3 billion euros. To discuss the numbers and the strategic shift, we are joined now by the cfo, Clifford Abrahams. Very good to have you with us. We will talk about all of these things, the strategic shift and whats happening with provisioning. If i can stop start with a low loss provisioning, what is the trajectory for low loss provisioning . Do you think we have passed the worst . What does the visibility look like . All loanloss provisions in q2 were around 700 million. Which is a decent amount, which is why we break even in q2. Those provisions were down on q1 and we expect him p. M. Ins in the second half of the year to be below the first part of the year. Its possible we peaked for this year. We expect impairments to be elevated next year, but likely down on this year. We are hopeful we have seen the worst. I wonder about the Investment Bank performance in the quarter, and your plans for the division for the unit in the future. Our Corporate Bank outside europe, a tough quarter. Of those provisions, that 700 million within our Corporate Bank and a lot of that was in our global business, our plans about business Going Forward outside europe. We tend to wind down that business. Thats about 10 of the group. That reflects our decision to focus the bank and the Corporate Bank on our home market. Group for derisk the the moderate risk profile. We want to line the whole group to a common strategy. We work closely with our other businesses here in europe. We will invest and grow those businesses. Anna more focused on the European Business than. Selling theider parts of the business that you will take three or four years to wind down. That business is around 10 of the group in terms of capital. Work with the client and take our time and what is still a tough environment to wind down the business. We will do that to optimize the value of the group to do the right thing for our clients. We expect that wind down to be capital over that period. Largethe civ had very losses on individual clients recently, clifford. Amros it possible that abn was involved in so many writedowns, and what are you doing to improve control in that business . Clifford the environment has and we are a big bang that operates around the world. We have seen more than our fair share of issues. We have taken a good hard look at our Risk Appetite across our business is in the Corporate Bank and tightening up our Risk Appetite when necessary. Some of thoseing businesses where we have seen elevated in the past. I suppose that you are offering some of those noneuropean Investment Banking activities to satisfy european clients. Assessment of whether this will damage what you can do in europe if youre . Ot able to operate clifford we think it will have a limited impact. We will maintain our activities in clearing which is the top three globally. I will remain our global business. Within europe we remain in the shipping business, which is an international business. The other business and other parts of the world are in you are europe and asia and they were prominent for other businesses. We are copying we can grow in europe. Abn amro is under criminal investigation by the dutch Public Prosecutor for lacking Money Laundering controls. Can you tell us anything about how those discussions how that probe is going and whether or not its possible you reach a settlement . Clifford its ongoing. I have no further update. As you would expect we are incorporating fully with the investigation and we will update you when we have news. Anna i suppose that is to be expected. Let me talk to you about the daytoday operations of the business during the covid19 pandemic. What does this mean for the way you are able to operate the business at the moment . What daytoday challenges does it still present . Clifford here in the netherlands we have what we call an intelligent lockdown. A relativelyns is soft walk that started to ease in midmay. We have seen Consumer Confidence rising steadily since then. The government has been supporting the corporate and the private sector here with the banks. Any spike ineen bankruptcies in the netherlands. We are cautious going into the winter, but its from a health of an as government measures ease. I am optimistic that the worst is behind us in terms of health. We are clearly watching the Economic Statistics closely, but i am pleased to see the netherlands track records of resilience and out performing new england new zealand. Conomy and is still the case we feel good about the netherlands and europe. Oft we are looking at video a retail branch. Is the Retail Business going to stay the same or do you foresee changes, substantial changes for the way Retail Banking is done . We see change in the past. In the netherlands we are a leader in digital for a the bank and our clients. We see a step change in that Digital Adoption over the last few months. We have around 100 branches in the netherlands. Not that many for a population of 20 million already. We now really stepped up our Video Banking. Almost all of our mortgage consultations are done through Video Banking and we are seeing our clients across the business, our Private Banking clients and commercial banking clients really like Video Banking. Now that they have used it we dont think they will go back to the old face to the old facetoface in the same way as before. Think what covid has done is accelerated and build on past trends. Built on past trends. Talking tof abn amro us about the shape that this is Going Forward, the impacts of covid, the provisioning we are having to do and structural change. At get back to the u. K. Gdp story. The chancellor has commented on the latest gdp figures in the email. He said the u. K. Economy is now in hard times and goes on to say many more will lose their jobs in coming months. Clearly very cognizant of the way the treasury has sheltered many from the real impacts of a onto the has fallen u. K. Just as they have in many other parts of the world. Now we know the extent of that with the gdp numbers. Gbtc gbp numbers. The forecast is for the month of june. As i came in at a rebound of a. 7 , we saw 8. 7 , we saw an uptick in the pound. It was given some reassurance at the margin, except for whats going on in the u. K. Story. A bump back above 130. Here is laura wright. Splitting its shares in a 51 exchange in an effort to make the stock wessex and said to individual investors. This comes as the carmakers surge pushed its valuation to around 250 billion. Thats more than ford and toyota combined. Trading will begin on august 31. Air b b is filing for a stock market listing in the next few weeks. It could start trading as soon as the fourth quarter, during the harshest lockdown as air b b tumbles about 90 and they cut a quarter of the workforce in a bid to survive. By may the company was already seeing a rebound. That is your business flash. Laura wright in london with your business flash. ,oe biden chooses Kamala Harris the former California Attorney general as the first black woman and the first asianamerican on a major Party President ial ticket. We will discuss the democrats Vice President ial pick. This is bloomberg. Anna matt welcome back to Bloomberg Markets european open. Away from thetes start of cash equity trading and we are following. U. K. Futures are up on the ftse 2 10 of 1 . Elsewhere in europe we have red arrows on equity Index Futures. U. S. , joe biden has picked senator Kamala Harris to be his running mate. Harris is the first black woman and the first asianamerican on a major Party President ial ticket. Once a rival for the top job, the california senator of indian jamaican heritage and long been considered the front runner for the number two slot. And on capitol hill, there are growing fears that the stimulus stalemate could drag on for weeks. The key figures in negotiations have been spoken for days, and dont have any talks planned. The white house and democrats are still far apart on key issues such as state aid and the overall size of the relief package. Joining us now is the senior. Conomist these are two very separate issues. Let me start with the stimulus negotiations, or lack thereof. It looks like that may have been behind the downturn in yesterdays u. S. Equity trade. What are your expectations for a u. S. Stimulus package . I think a further major stimulus is rather unlikely, given the fiscal dynamics that we have been seeing in congress over the course of these talks. Whats likely is two things. One, a series of continued, very births of fiscal stimulus through executive order from the Trump Administration. We saw a 100 billion package this week. Although they are limited. Several prominent senators have already called them unconstitutional. And then you are looking at more things like tax cuts and middleincome tax cuts. Thethen the second thing is furthering of the fed. We saw the municipal lending facilities with a cut the rate by 50 basis points, which helps the states with them bearing the brunt of the pandemic. It will help them hopefully securities. Those are the two things we are assessing. I am pessimistic on the possibility of a grand bargain like what was done in march and april. I suppose the fiscal spending good morning to you the fiscal spending is something we pick up when it comes to other economies as well. Thank you. Just a short comment. We will get back to you shortly. Our senior economist stays with us. Up next we will talk about u. K. Gdp numbers. Britain in recession. The u. K. Economy tracked more than 20 in the Second Quarter, outstripping all major european countries. We will talk about the countrys outlook and the possible ray of light with the rebound in june on the year. It chancellor in the u. K. Says we are in tough times. Jobs. Ore will lose their we will focus on the u. K. Next. 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. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. 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 Bloomberg Markets european open. 30 minutes until the start of the European Equity<