Jackson hole goes virtual. Jerome powell gives an update on the central Bank Framework review. We hear from bank of england governor Andrew Bailey and ecb philip lane. No more lockdowns here. Italy joined france and spain and rolling out another nationwide shutdown. Despite rising cases in all three countries. Global infections past 24 million. The eu trade chief phil hogan quit after growing criticism that he broke my wrist rules by going to a golf dinner. Just under an hour away from the start of cash equity trading in europe as hurricane laura makes landfall in cameron, louisiana. See european futures swinging back and forth between gains and losses. Right now, dax futures up about 1 10 of 1 . The futures doing a lot of nothing. A bit of a stall after global stocks really had an alltime high again yesterday. I want to bring you some breaking news on wpp. The second quarter, organic sales at the advertising behemoth down 15. 1 . This sales hit was something that investors were focused on. Its not as bad as analysts had anticipated. 19. 2 had beenf the estimate. The sales drop was actually 15. 1 . Still bad but a little bit better than expected. Wpp booking 2. 7 billion pounds of impairments in the first half as well. The company says its buyback is still under review. Its also reviewing its dividend policy. If you are invested in those shares for income, watch out for headlines on that. Its costny also says savings are on track for the upper end of the range it had been a 700 Million Pound date hundred Million Pounds target. Cost reduction progress was also a big focus for investors. Lets talk about another country that is breaking news. Rollsroyce. Weve got an update coming through from them. Really interesting. They say they are reviewing options to strengthen their balance sheet. There had been talk about whether they would try to raise money coming to ask investors to put more money in. This is a business that makes money or doesnt based on how many engines they sell and how many hours their engines are in the air. They are reviewing those options. First half adjusted operating loss comes in at 1. 6 7 billion pounds. 191 million. This is worse then was anticipated in terms of the underlying loss number. They are talking about the potential disposal that they had for those number. They are reviewing that right now. Thats one of the lines we are hearing from the businesses morning. Targeting disposals to raise 2 billion pounds is one of the lines we are getting. Also, headcount. Headcount4000 reduction by the 27th of august. The fundamental restructuring of their Civil Aerospace is something they are tackling. We believe that there for now. Rollsroyce giving us an update on their performance. Interesting. Targeting disposals to raise 2 billion pounds including itp arrows. , the latesto matt on the hurricane. Hurricane laura making landfall near cameron, louisiana. A category four hurricane. We were being warned that this was dangerously close to becoming category 5. It could be. It still could be the most powerful hurricane to hit louisiana, bringing with it deadly storm surges, flash floods, high wind. Winds gusting as high as 150 Miles Per Hour overnight. Those kind of speeds make it a rival to the lost island hurricane. 1856 is the last time we saw when speeds of that nature. A real focus is on any loss of life that might happen here. Industry and other parts of the Energy Taking precautions ahead of the arrival of hurricane laura. Lets get a bloomberg first word news headlight update. A 17yearold was arrested after two people were fatally shot in kenosha, wisconsin. They came during clashes between protesters, counterprotesters, and the police. It stays after another black man was shot seven times in the back by police. The wisconsin governor has doubled the number of National Guard members available. China says it offered to let u. S. Regulators audit companies. It is hoping to diffuse a spat that could see its firms on american exchanges delisted. The vice chairman says beijing is sincere in wanting to pause the state of standoff. For all the u. S. Investors who have invested in these Chinese Companies, they have made a lot more money than the average market in return. Its good for the Chinese Companies as well. They have access to International Capital and listing in new york also helps. Its mutually beneficial. I hope there will not be a decoupling. The European Union trade chief has stepped down after growing criticism he broke virus regulation. He attended a golf dinner in ireland last week, an event that is under police investigation. The eu will have to move quickly to fill the post. And has a key role in trade discussions with the u. S. , u. K. , and others. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Matt thanks very much. Rally has stocks stalled out a bit as Traders Await details on the feds new policy framework from Jerome Powell in the virtual jackson hole speech. Making landfall in cameron, louisiana. Lets bring in laura cooper from the mliv team. Both of these things, it seems hurricane laura. Im confused. You have the same name. Everyone seems to be named laura today. Hurricane laura hitting with very dangerous winds and camera, louisiana. The jackson hole speech. They are equally halting the dollar right now. Tell us how those things affect the currencies move. This point, we are seeing this risk off tone. Fed, it will the likely be hard for the fed to actually out of the markets today. Markets appear primed for some confirmation that the fed is going to be open to this inflation overshoot and this aggressive stance. If this is confirmed, we would expect to see the dollar come under more pressure, adding to these underlying fundamentals. Theres a real risk that we could see the dollar catch a bid, should the fed disappoint and not provide details. That is something we saw post fomc meetings last week. We did not see hence of this imminent shift. It does set up the potential for Dollar Strength today. Anna good morning to you. Its interesting to see the asiapacific stocks down, 1 10 of 1 . Consider some of the latest geopolitical tension between the u. S. And china. Maybe thats an achievement. They are testing missiles. The Trump Administration putting trade visa restrictions on some chinese officials. All of that could have led to something more of a selloff. I suppose we are all waiting for jackson hole. Laura c. that is the case. U. S. China tensions have been trump has made it clear that a tougher stance on china is a key element of his election campaign. Despite the progress that he wants on those the phase one trade deal. Its all about powell. We have this hurricane as well. Those two are quite negative catalyst for stocks heading into the session today. Matt we could see as much as 25 billion in damages from this hurricane. Thats if it holds that a category four. Ask theo quickly question of the day. You are asking on the mliv blog today. What would a trump when mean for assets . You previously asked about biden. What are you hearing from clients . Laura c. we are seeing the fact , the conflicting potential sources of stress for the market. One is that a Trump Presidency could be seen as more cash friendly, less regulatory. That could actually support this rotation into cyclicals, the financial sector. At the same time, we also have escalating tensions around trade. We could actually potentially see an extension of more trade tariffs, geopolitical tensions in general. That is unlikely to be the case under a biden presidency. At this stage, it is hard to determine which of those factors will win out and be an upside or downside to stocks. 2016,f we look back in the first few months after the inauguration were quite negative for stocks. We had a strong uplift. That came partly on the back of the fed and sweeping tax cuts. They could have that same reaction again. That is something worth considering. Anna with culture wars dominating, a focus on policy, it seems sensible to protect the unpredictable. Thats the latest on the markets. We mentioned Jerome Powell and jackson hole. We will get more of that. Jerome powell headlines this years jackson hole symposium. We will look ahead to his highly anticipated speech. Thats next. This is bloomberg. Anna welcome back to the European Market open. 45 minutes to go until the start of the equity trading session. Features dont tell us much about where we will head through the european session. Mixed for European Equity markets as we wait for jay powell at jackson hole. Jackson hole 2020 kicks off today with the fed chair. He will be headlining. This year will be like no other. The event will be held virtually for the first time ever. The public will be able to watch. Traders are expecting details on the feds new policy framework with the fomc holding shortterm Interest Rates. Symposium will also address the challenges facing policymakers as a result of the pandemic. About theo the Central Bank Inflation target. I never thought of 2 is a ceiling. Stay focused on what anchors Inflation Expectations in the economy. From a communications standpoint, i think we will be talking about the kinds of things that help us do a better job of achieving our objective. Lets head to andrew jackson, head of fixed income at federated hermes international. How high should our expectations be if we want to protect ourselves as we head into jackson hole . What are we likely to hear . Andrew i dont think we are likely to hear anything urgent. You spoke to laura about jackson hole and hurricane laura. What laura was focused on is what will happen here in the next day or two. What we are really interested in is what happens a long way away from here. As much as focusing on spot risk, risks over the next couple of days, i think we are all very focused on what happens in the long way. Deflation, lot of does the policy framework change sufficiently to be able to stimulate the economy there and get inflation back in . A reminder from Jerome Powell of how powerful they can be to fight inflation is inflation gets out of the bag, if we get that 2 . Most policymakers and central bankers are hoping we get there at some stage. It may take some ideas to get us there. Matt what are the unused tools . What have they not reached for yet that is still at their disposal . Andrew more formal guidance. They can go as far as japan and think about targeting yields. I think negative Interest Rates is one which they have struggled to come to terms with from an Operational Risk perspective. We see that in europe. That is something that you hope they are discussing just in case we get a major impact on the Global Economy or the u. S. Economy and if the virus were pernicious over the next 12 months. Shape do you think the yield curve would look like if the fed in the fed dream scenario . If they could do whatever they wanted to assist the u. S. Economy to recover from covid19, what shape would they give to the curve . Andrew they wanted to normalize. The kind of curve we are used to seeing. Where to tens are not acutely flat. They want people to value shortterm over longterm. Getting anything close to normalization gives them more power to fight inflation. They want to be able to move the yield curve, twisted if inflation starts. At the moment, they are mostly worried about getting inflation back. They will not be focused on what the yield curve looks like. They would be more comfortable if it looks steeper than it does now so they can do something about it. And attack inflation. They want to get their weapons back. That is their secondary concern. The primary concern is getting back to normal. Matt its interesting to me that we are talking about extreme, extremely dovish, emergency dovish measures. Possibly even reaching for negative Interest Rates in this economic collapse. At the same time, equities are at alltime highs. The s p 500 is trading for 27 times future earnings. How do you square that circle . How do you make that work for you . The equity market is betting on a bang up thirdquarter recovery. Chairman powell is doing anything he can to save the economy. Andrew you are basing the fixed income guide to be bearish. You are right to do it. I worry a lot about that. The dislocation between the markets and the underlying economy are stark right now. Odd, that wel very are at those kinds of levels. We are at those levels partly because of what Central Banks have been doing and the impact that that has on investors. It forces investors to do stuff that they wouldnt do. The momentum is very strong. You commented earlier about how asian futures are doing better than they you thought they would do this morning, given everything in terms of trade tensions. The fact that todays jackson hole. Momentum continues to be positive. It is tough to be bearish now. In the meantime, when i looked at fixed income markets, theres a ton to do. You a more bearish tone, get a fixed income guide to be bearish stories. There are corporate that are really struggling. Not just individual borrowers. Veryis a time to be focused on your analysis, your credit analysis, your equity al assist. There will be bubbles on the upside. There will be those that will probably go into bankruptcy at some stage over the next six months. We dont see that amazing thirdquarter performance. Matt fascinating stuff. Great to get a fixed income guide on when we are looking at alltime highs on the equity side. Someone call you the smart money. Thats what we would call you. Head of fixed income at federated hermes international. Thanks for joining us. Up next, hurricane laura makes landfall. The category four hurricane hits cameron, louisiana, causing extreme wind and flash flooding throughout the entire state. We will bring you the details, next. This is bloomberg. Matt this is the european open. We are 38 minutes away from the start of cash equity trading. 36 minutes away from the start of the cash trade. Futures have turned slightly red. We were bouncing back and forth between gains and losses. We are coming off of record highs. We did hit record highs once again yesterday. Indexes,of different from the s p 500 to the ms ci world index. We are up at pretty lofty heights. This ahead of the fed speech at jackson hole. We will hear from chairman powell later on today. Also was hurricane laura crashes into the louisiana. Weve heard reports that wind is up to 150 Miles Per Hour. Thats about 240 kilometers per hour. That causes massive flooding across the state of louisiana. Its a category four hurricane now. Nearing category 5. Threatening what forecasters have described as unsurvivable damage. You are seeing live pictures of texas. Cameron is where the hurricane hit. Reporter. Is our you, whatet me ask are the chances of has everyone evacuated . Human life is the most important issue. Where does it stand . Stephen authorities have said they have evacuated nearly everyone. That is the highest priority at the moment. People a report that 150 to decide to stay in their houses. Its an emergency. Everyone should be evacuating. The government is doing all they can to get folks out at the moment. I know that the oil industry will be ready for this. What kind of aside from the tragic loss of life that might result, what kind of financial damage are we expecting to see . Stephen this will be in the range of tens of billions of dollars of damage across the board, not just to the oil and gas industry. Also to infrastructure in the region. The Louisiana Tech suncoast right there is home to about 25 of u. S. Refining. You are already seeing facilities get shut in, they are not producing. Thats affecting the price of gasoline. It is the home of two of the largest lng export facilities in the united states. They are both shut. They have evacuated both all staff. Evacuated everyone. Anna thanks so much. 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. Welcome back to the European Market open, 30 minutes away from the start of cash Equities Trading this thursday morning. Futures suggest a fairly lackluster start, and also watching what is happening with hurricane laura in louisiana. Lets take a look at some of the events worth watching out for. The 2020 final day of Republican National convention. President trump is expected to deliver his president ial acceptance speech. Angela merkel to discuss the strategy to contain the coronavirus. We will get a further update on the spread of the virus a little later in the program. And jay powell will speak at a Virtual Event to discuss the Monetary Policy framework. We will look about inflation targeting, and per limiter estimates shows u. S. Gdp contracted by the most ever in the second quarter. We will get a reading today alongside u. S. Weekly jobless claims. They drop at 1 30 pm, always a focus for the markets. Matt . Matt yes, absolutely. So a lot to look ahead to today, and there is some news out of delivery hero, as well. The best performing stock on the german dax is buying the Online Grocery store, insta shop, 270 million as delivery hero reported their first earnings since the company entered the dax, and that was just this last monday, actually. It is germanbased b