Recovery fund. The agreement would be very bad not only for europe but for the markets. Ericsson tops the stoxx 600 as european roll out drives demand but the leader says hes worried europe is missing out. China has accelerated the rollout and it continues at a high pace in north america so 5g is happening at an increasing pace in the world i worry that europe is falling behind daimler shares accelerate as more cost cutting forces the carmaker to halt production of mercedes demand in u. S. And mexico as it reveals a 1. 7 billion operating loss for the Second Quarter the last dance for a lockdown growth shares plunge in extended trade as the streaming giant adds 10 million subscribers but warns growth will grow sharply to its weakest level in years beginning shortly, some comments crossing from the European Commission and she has effectively said that these stakes couldnt be higher and all necessary pieces are on the table and a solution is possible from her leadership perch hoping a deal would be struck today as she took to the red carpet a short time ago what we are also hearing this is a group of the frugal four leading the charge said hes not optimistic ahead of the talks on a Recovery Fund he said netherlands will stick a a position Recovery Funds must be tied to reforms a lot discussed behind the scenes about some grants and loans being tied to the countries and suggestions of compromise and the latest crossing the wires right now, julianna thank you, karen. Weve heard from a couple of other european leaders french president macron said europe needs to show solidarity and ambition if it is to agree on a covid Recovery Fund translator this is a moment of truth for european ambition we are living through a Global Health crisis and Socio Economic crisis coming to agreement and coming hours are absolutely critical to achieving these goals. European Council President also urged leaders to come to an agreement. This is an important decision the first since the beginning of the crisis we have worked very hard to prepare this summit. I know it is very difficult because it is not only about money. It is about people, European Future and unity even if it is difficult, i am convinced that it is possible to reach an agreement comments are crossing there one of the big ones is really the tone from the frugal four. I want to highlight some of the challenges the optimism some of the peripheral countries have as resip ye recipients of the funds what they are weighing in on. Saying hes not optimistic on these talks and hes sticking to a position about recovery on reform that does not lead to a lot of compromise, does it . We know there are two different groups going to the summit most of the European Countries are on the same page when it comes to recovery and on the other side, we have the frugal four headed by the dutch Prime Minister and that they are asking for more conditionality attached to this fund. The crucial bit here is that we are seeing leaders meet for the first time in about five months. It is very relevant. This is how they are used to making deals they get together and meet for all nighters and reach for a breakthrough we could see that happening already this weekend at the moment, it seems like there is a chance of 50 50 whether we are going to see a deal or not. Some of the stumbling there if we see the governance and it has been asked that the different government put together a reform plan to outline how theyll be investing the money theyll get from the eu and at the moment, that government is asking for those plans to be approved at the council and many governments are against the idea because theyll be giving them including the netherlands and also every eu country, a lot of power about each Others National plans. I just wanted to give you the outlook that the Prime Minister shared with us moments ago sharing some thoughts ahead of the summit im seeing how the amounts are calculated it is not very fair. If you look at unemployment rates of the last five years, what is the impact of the crisis for me, it is more important to see what is the impact now we decided to do large scale testing, we test over 10,000 people a day because we are sure to test a lot makes it possible to stop the spread of the virus as quick as possible. We are able to find a third of all the positive tests through largescale testing and also testing commuters. This is not taking into account when you account the expenses of the crisis there is still some homework that could be done on how we calculate the expenses when we speak about solidarity, i have to admit i am surprised and happy about the testing that makes now that we have high figures. It is normal if we test higher, that is normal that we have higher figures. Some countries say, they have a lot of positive tests, well see how many positives and we have the good figures the problem is we speak global and act local very often as i said before, there are some homeworks to do still now. I took enough shirts for the next days to find an agreement to leave without an agreement would be bad even in a crisis time, we are not able to agree. That is a problem for me Prime Minister, im worried about my children and grandchildren. Who is going to pay for all of this debt to government, corporates, households it has gone through the roof the latest figures now europe and the european area have the same problems who is going to pay for all of this the fact that we speak about resources, thats new. A lot of topics about the resources and we speak about plastic tax. We agreed in paris, remember we gave us Ambitious Goals if we want to fulfill what we say and be credible, the people that want to import products in europe and the limits you paid if not, you pay a tax. We speak corona and money. A few months ago, nobody spoke about those. We still have problems with our environment. It is important to keep that in mind too then there is a discussion about the digital tax and a lot of different points where we say as european union, we want incomes and resources. On the other hand, we guarantee the order amount so that means that the payment back is a long time about 30 years together. The fact that we have crisis today and we have to react today. Not to react to this crisis now, the bill will be even bigger tomorrow so this is likely to be a long meeting, guys we are not expecting a breakthrough in the coming hours. There is still a lot of differences to determine how this money will be distributed and how theyll be repaying for this debt in the future and how they are going to be overseeing how the funds will be distributed by the Member States i wanted to give you a final note that well be discussing this since april 23. That was the last time we had the submit they agreed that the commission needed to come up with a proposal and since that date weve been discussing about this Recovery Fund and how the euros should be distributing these 750 billion euros. Thank you for breaking it down for us. Lets bring in our next guest, european economist to weigh in florian, it felt like there was so much optimism going into the Recovery Fund. A lot of differences but investors had been bullish since this proposal came together. Now this morning, throwing a little cold water. The dutch Prime Minister weighing in saying hes not optimistic is this all just political posturing or do you think the mood has turned a little more sour it is difficult to say ahead of that summit it is crucial and we expect the eu leaders to make some serious progress this is the first summit where they sit together in a room. That could spark a positive surprise yes, a breakthrough is unlikely at this stage not only are they far apart. They are meeting in a room for about 300 and they are about 27. You are not going to have these by lateral talks over a glass of wine these differences still remain pretty different will probably narrow a little. There are some very sticky points no breaks from now the best result could be that they agree to meet again before the summer break at a summit where they would have an agreement in principal. In terms of the sticking points, you mention conditionality and governance. On conditionality, the frugal four want to insure tut funds. Italy front and center when it comes to being a recipient to these. Do you think we could see any give to the italian side in terms of what they are willing to propose on the reform that could get the frugal four across the line here . Weve seen so far from the italian side is that Prime Minister conta came up with socalled s socalled sim live indication simplification it would have to make us reform and investment agenda more ambitious to accept that the thing is, the frugal four will look at conditionality and governance in combination. The less italy could provide or would be ambitious in its reform and investment initiatives, the more the frugal four, especially the netherlands, will suggest that they want to have the final say of giving a green light to disbursement the more the italians give, the less the dutch would insist on that and the other way around. This Recovery Fund has been wrapped up with the longterm eu budget, it was a clever tactic in terms of kbcombining them do you think we could see in some way that frugal four are compensated in the longterm budget as a way to get them on board for the Recovery Fund . Yes that would be one of those options where they either have to pay in less because they get a higher rebate or more out of it in this regard, there could be a bit of horse trade in the fund and the longterm budget at the same time, and this would be a more explosive option in the eu or other major countries, they would consider to push ahead with harmonizing corporate taxation the netherlands have quite a favorable tax regime if countries give green light to the European Commission to basically fast track some of these initiatives, the dutch resistance to the proposal would probably soften a little not sufficientily the way would be more through rebates and more ambitious reform agendas by those countries which we would expect to receive the large shares of the money. The digital tax is one of the components of the european budget over the next seven years. Europeans are pretty good at delay taxes and talking with americans. That doesnt seem a lot of appetite to go it alone because of the fear of trade or retaliation from the americans do they continue to pencil this in and maybe defer taxes to a later date yes i think they will. At the current stage, ratcheting up the differences with the u. S. Is probably not a wise option. In this regard, the taxation may not be the road ahead. The eu is thinking about a plastics tax and carbon board adjustment so the initiatives well put forward in all respects of how the eu can risk their own resources. That may actually be one of the big steps of the Recovery Fund and the longterm budget that we get even more integration among those European Countries not only are they sharing a bit of the debt burden but at the same time, they could make up their mind and say, all right. Okay we go forward with our own resources, which is a requirement for coming along towards, lets say not a hamilton moment but another step of such a moment some quarters of europe are certainly like rules when you look at what could be debated, one suggestion would send out the money through grants and conduct annual reviews. That does provide fees and intervention like we saw with the constant having to clear hurdles. The other compromise would start loans and write off those and turn them into grants if certain conditions would be met. What would be more palatable for members for the likes of greece and other member countries i think a lot of those countries, which expect to receive a big chunk of the money acknowledge that they have to get their economies up to speed. Especially when it comes to italy. So there is this acknowledgment that they have to implement reforms, which other countries especially the netherlands are requiring to do. I think the addition of those loans and grants with those countries like the frugal four might be palatable in addition to the strings of money weigh softer than what we had seen eight or nine years ago. Currently, it is a lot of this horse trading going on of selling whatever agreement well hopefully get to your domestic audience and seeing Prime Minister conta and where the sentiment has been rising there a lot about how do we come to a deal which is palatable and beyond the substance the expectations you build before hand and you communicate whatever you agree on after such a summit this is really crucial even if we dont get an agreement now. Thank you you can see on the dollar rates, we are slightly shy of the 114 handle weve climbed a long way to get to the 1. 14. We are a little above it yesterday when madam lagarde was talking about the potential of this Recovery Fund a little higher than where we are this morning the one to watch if we do get positive news and it could be market moving. Well check on that currency for you. Come back to Corporate News and well explore the ericson numbers. Hes concerned europe is falling behind in the race for 5g roll out. Now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. I was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. Touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. A quick look at some of the european markets you can see the german stocks in the green. Reversing to the tune of 1 . Very much eyeing this Recovery Fund and the detail that will come out of it still some option that will handout some of the grants and loans. Skuing the balance and at the top 1. 7 higher. Technology topped 1. 1 Health Care Stocks out as well offset by the banks. Banks on the back of 1. 6 travel and leisure reversing today. The big Corporate News has been ericson. Confirming financial targets for 2020 and 2022. The telecom maker signed 99 new 5g makers in the quarter a drag where they said they could return to profitability at the time telling cnbc, the ban could end up speeding up decisions on 5g investment it is all about delivery solution and new prices. Thats the only way we are going to longterm win what is good with the decision is it removes uncertainty that could be hampering investment in 5g in europe and in the uk the reality, europe is falling behind china and north america so i think it is good we can speed up and focus on speeding up the 5g vefltment. Daimler reported a smaller than expected loss of 1. 7 billion thanks to sales in china and a jump in sales last month. They will halt production in creating sa creating sedans in u. S. And mexico in an effort to cut the cost ab volvo and trucks and Construction Equipment maker will cut 4,100 jobs as a plan to reduce jobs. Coming up, Russian Hackers are accused of vaccine data theft. Well delve into that after the break. 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. Translator i have to say that there are still big differences. Thats why i cant say well reach an agreement this time around i hope we do but we have to look at reality in the eyes the first summit as leaders brace for heated negotiation on the agreement on the blocks 750 billion euro Recovery Fund it would be bad for europe and also for the markets ericsson tops the stoxx 600 and reaffirming its target says global 5g roll outs drive demand he worries europe is missing out. China have accelerated the rollout to the future and the infrastructure it continues at a very high pace in north america, so 5g is actually happening at an increasing pace in the world i worry a bit that europe is falling behind daimler shares accelerate as more cost cutting forces the german carmaker to halt production of mercedes sedans in u. S. And mexico as it reveals an operating loss for the Second Quarter. The last dance for lockdown growth shares in netflix plunge after the streaming giant adds over 10 million new subscribers in the Second Quarter but warns growth will slow sharply to the weakest level in years it is a big day in brussels today in a key meeting to debate the 750 billion Recovery Fund to help out hard hit states in europe this is now the inside of the meeting. You can see some elbow bumps there. One looks to be some what breached many leaders arrived wearing masks. They took them off as they communicated their messages no journalists there. The conversations are niceties at this point. The nitty gritty looks complex there has been push back from other states and too many attached the group of nations called the frugal four led by the netherlands calling for condi