billion euros for 2020. second quarter pretax profit came in at 158 million euros. the estimate was for 133 million euros, a beach on the second quarter pretax as well, so that was deutsche bank. santander, second quarter loss of 11.1 billion euros. that was unexpected because what was estimated was a profit of 828 .5 million euros as santander is booking a goodwill nonrecurring impairment. antander reporting a loss on $15 billion covid related charge. coming up, we kick off a week of oil earnings including bp, total, and shall. -- shell. we will speak with a ceo of an oil company. we have three ceo's coming up for the rest of this hour. that is next. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." i am nejra take action london. let's get to the risk -- nejra cehic in london. u.s. futures point to another day of decline. european futures also negative. the 10 year yield absolutely steady. the real yields on the 10 year at another record low in the u.s. the dollar holding to some losses. w

budget news of the deal so the euro rise to a fresh 4 months high. now for more let's bring in chelsea delaney from the frankfurt stock exchange jessie 4 days of hard running or was it worth it. for markets it's a clear guess that it was worth that we've seen the dax actually a raise to all of its losses for the year now it's up about 2 percent so that's a pretty incredible again given the coronavirus economic fallout we've seen this year but for investors obviously there is a real need for this money in the euro zone economy is expected to contract about 8 percent this year but the discussions were so heated and they also really brought about these bigger questions about the future of the euro zone what these countries and the euro zone really to each other and so the fact that they were able to strike an agreement and sort of come together is a big win for investors so now all this money is agreed upon but how exactly does this deal work with the money coming from and who will get it. all the money is going to come from the capital markets this is

and facing up why can't boss comes clean about his role in the downfall of the multi 1000000000 euro payments for. the kids as well and as to business history is in the making investors are closely watching today's e.u. rescue summit leaders hammering out a deal for the biggest recovery fund europe has ever seen but there's dutch opposition and the threat of a hungary and veto the markets would love a deal but this could drag on over the weekend and even be too late before we get too pessimistic let's check if the european union is on the right track in getting its 27 member states through these tricky times it's a question my colleague rob wants put to some of the world's leading economists the european central we have a commitment to a common fiscal response with the european recovery fund now they're going to walk you about it on friday and saturday we'll get a decision up 5 minutes on our street deprived politicians as we always do but i think we will get. eventually a commitment to a common for school program and that's why i call for europe's stability over the medium term the

it started at 500 billion euros. to 400 billion euros. and now we understand that it is at 390 billion euros. the frugal four believe this should be done through credit and loans. they are willing to work with 390 billion euros. you're looking at a reduction of more than 100 billion euros. but i will say that negotiations are ongoing. we know the european leaders will reconvene at 4:00 p.m. rutte trump into marc this morning and he says he does not believe this is a done deal. he said howell -- i asked him how long this could go until and he said until the end of the weekend. anna: this does not feel like a joke. signaling -- if the deal is reached, it will seem like an important political signal has been given by the european leaders. what about the other issues they have been talking about? conditionality. the reforms. what else is still being discussed? maria: there is a big question mark around rebates. some countries would like to see the rebate increase. including the frugal four. if they do have more money now, it is a contradictio

you were talking about the euro taking into the green on headlines and we continue to watch the euro-dollar at 1.1446. head ofing in the fixed-income research at socgen and guy, you had been counting on -- i was reading through your recent notes come your forecast, expect haitians, some kind of agreement here. this be all right with you if we got 390 billion euros in grants? as good as the original plan, but i think what is probably more important than the numbers is the psychological impact and the message being given. what is significant with this plan is the first step towards some sort of real fiscal union in terms of europe and one of the problems with the monetary make a monetary union work, you have to have a fiscal union so in that sense, the psychology behind this decision is more important than the numbers. i know you are bullish on italy. they will be one of the big winners in this plan, but are you worried about the political uncertainties in italy? just this weekend, politico had a expose on the politicians looking to be the next nigel farage and you are hearing more rhetoric f

andbillion euros of grants, three to 60 billion euros of low interest loans -- 360 billion euros of low interest loans. what difference does this package make to your assessments prospects? next yearth is, it is and will peak in 2023, 2024. for us what matters is what will happen in the near term. it will have very little impact on that. there is an organic recovery process that is already underway. that should be enough to further lift growth rates in the euro area. the crucial measure of business confidence, the pmi, as translated to another 10% to 15% for european equities. matt: is this a list, sebastian, that you saw happen first in china or asia, and is now happening in europe? and you expect to happen in the u.s.? as far as i can see, the virus shut downs really hit china first, then europe very hard, and now, they are sort of hitting the u.s. in different places. is that how the recovery is going to work as well? sebastian: i think that is a great way of putting it. china has been our playbook throughout this period so we saw how lockdowns were at two months in china. the growth

leaders have now agreed on how to share 750000000000 euros in 8 between member states. you're watching t.v. news live from berlin stick around for g.w. business in. more news as always on our website w dot com and you can follow us on twitter and instagram ads. i mean found much time to thank you for. in the height of climate change. africa's most of. what's in store for. us to come for the future come the closest thing to construct a major city to go to just inside the country or. i mean this is the entire show the entire scheme jurors are dealing with a new unit and i killed many civilian.

we were talking about the euro, euro up on the back of the belief with the fact that the e.u. frugal four or the countries that have been holding out are ready to accept this $450 billion in grants for the recovery fund. julius baer takes off european bank earnings a record first half profit. anchor manusbreak cranny spoke with him -- with the ceo. take a listen. >> in march and april we have seen continuous activity through the entire half of the year with a bit of on and off, but coming out of the first into the second half of the year, there is a dynamic of what are the markets doing, how are those recovery patterns happening in different countries. it will be interesting moving forward. the fx,ou said look at is,derivatives, my question is that hedging or is that active client engagement? how would you define that kind of number in the report? obviously our boundaries are cooler. the treasury book has been a revalue with the huge change in dollar interest rates throughout the first half of the year, foot on the other side come on the trading side, we have been benefiting f

euro stocks are totally left. i did want to point out that euro-dollar off the highs of the session but just barely. about thegth is that recovery, something is or don't want to be on -- but on the dollar being down and out. down byyield in italy one basis point. the two year yield up five basis points. close to that negative territory. it all comes in the euro cancel fund and if they will distribute that 750 million euros. we will be talking about that with david bloom from hsbc. let's get the update on the ground and brussels. maria is there with more. what do we know so far? it seems like they are going to be talking on the 750 billion euros stimulus. is that rhetoric? maria: it is unclear whether we get a deal. we do know european leaders have been stuck in a room was 10 hours debating what to do with his recovery fund. it is clear there are three major sticking points. one has to do with the size of the recovery fund, how big it is going to be. euros wouldbillion be granted as grants to countries in southern

s unprecedented 1.8 trillion euro aid and budget deal which would see the bloc borrow against its own budget for the 1st time in its history the euro hit an 18 month high on the agreement which also drove market gains in asia europe and the us the deal hinges on a 750000000000 euro coronavirus recovery find divided into loans and grants for members hardest hit by the pandemic the grants don't have to be repaid here's how european leaders have been selling the deal. the agreement reached in brussels early this morning is good news for millions of people in germany and all over europe. any help is needed now especially for countries that calm manage the recovery on their own likes and evelyn's did exchange we expect those countries to do everything possible to manage on their own next time for over the year interest rates are lowered the cost of borrowing is smaller and everyone benefits from that that's called financial solidarity so that's what was born this morning in this agreement and it's significant progress. it's an authentic marshall plan to give a forceful response to the cove

the euro bank slightly. i wonder how this final deal compares to what was already priced into the market. maria: that is also a very good question when you looked at the action in particular in the italian debt market, they had been very well anchored on this idea that the european central bank is going to stay put and that ultimately the european union leaders would have to agree to a fiscal package. a country like italy and spain would be the guest beneficiaries for those grants. that is to say that money in other parts of the budget has been reduced to make sure that those allocations would not change too much. so you are seeing potentially a windfall here, a compromise the only country that is not going to get more money is germany but angela merkel suggested today that that was the price of a compromise. nejra: thank you. catch up with you a little later in the show. let's get to breaking corporate news. the two headlines that you want to draw your attention to is that ubs may resume share buybacks as s

the euro call slipping a little bit. option suggesting that investors are less optimistic and can make further gains from here. what is your view? jane: very much it depends on what happens at today's summit. the we have progress are not? we may not get a sign off on the recovery fund, but what we need to gauge is the degree of representation and whether or not something can be done in the next few weeks. they indicated we may need a second summit by the end of the summer to push it through, but hopefully today we have a good indication whether or not a compromise is there for the taking. the euro has priced in good news since may on the back of this and the policy move earlier in the spring from the ecb. if they can do something today, you can go a little bit higher, but a lot of the news is not in the price, and it could be tough at these levels. statushat kind of haven is attached to the euro? what is in the price with that in mind? concern aroundng virus infections, and as we watch european leaders put together this

with a woman finally get in front of the wheel for the euro group that's the finance ministers out of their worst recession in you history and france so just because humans to. had taken stake in the huge slice out of sales for producers. is all a let's do business the environment is a big window with economies around the world coming to a street chain holt as companies crank up production the dream of a clean a future is going up in smoke international energy agency is calling for states to include aid for green policies in their corona rescue packages. shuttered shops empty high streets life at a standstill in many parts of the world the pandemic has prompted governments to take action to stabilize their economies. airlines have been rescued and stimulus packages of help keep companies afloat but with so much attention being devoted to the health crisis there been calls not to neglect other pressing issues like climate change. such concerns have prompted the international energy agency and the international monetary fund to propose a plan that aims to unite climate protection with e

euro-dollarrket, unchanged on the day. how much pressure will adam lagarde put on european leaders into the weekend. tom: the questioning is of a ecb pressity at the conference. 's with macroo policy perspectives. her claim out of ut austin was economy. she absolutely nailed the slowness of gdp that was to come. let's go back to that moment where you nailed to the gdp growth that didn't happen. are we falling into that trap again? >> we are certainly in danger of it. the fed has done a good job disconnecting markets from the economic distress we are experiencing which prevents the sort of debt deleveraging we were starting to see in march. it was that balance sheets drag that really was the constraint on the recovery last time around. we don't have overleveraged consumers. we also don't have banks that are in distress or having solvency questions and that's also huge benefit. but we do have a deeper fundamental hole in the economy and just a tremendous amount of uncertainty. so there is still lots of need for support to ge

is that positive as well for the euro? the dollar side, what we are seeing from the imf is a structural downtrend in the dollar falling across all central banks. we have recently -- march is the lowest level in terms of dollars 2011, it was the second lowest since 1996. these are interesting times, and looking at the flow, it is the case that we do see diversification away from the dollar, but as you also said, in terms of diversification into point, they, case in chinese, it was encouraging last week that with the dollar cnh collapse that we saw, very sharp moves coincided with a very sharp outperform of chinese stocks. looking back at the euro, the latest ecb balance with data, there is tangible evidence that was taking place, the less investors become buyers of domestic. my point being that the rest of the world has been very invested in the u.s. for the last five years. most of those investors were based in europe. assets,e domestic looking at it as before, political risks and all that. guy: stick around. we need to ca

budget of more than a trillion euros michelle has proposed a recovery fund of 750000000000 euros in loans and grants. money for this fund will be bored by the e.u. on financial markets and directed toward countries hit hardest by the crisis such as spain italy and greece what's driving a wedge between leaders is whether the money should be handed out as grants the so-called frugal for austria the netherlands finland and sweden insist it should be mostly loans and paid back he is considered one of the biggest obstacles to a deal austrian chancellor is a bust and coots goods things an agreement can be reached but that necessarily this weekend. there are still a lot of questions to be answered 1st of all to where should the funds flow who will be the main recipients what is the suitable criteria for this. though clearly delighted to be meeting up again in person the jovial atmosphere is not expected to last long the german chancellor angela merkel's cautious optimism in the days leading up to the summit seems to have subsided. this put off we will take a lot of willingness to compromise from

leaders agreement on a 750000000000 euro carona recovery package after a marathon 4 nights of heated negotiations the leaders struck a deal to provide 390000000000 euros in grounds and another 360 in low interest loans to member states hardest hit by the pandemic it will be financed by collective borrowing a paradigm shift for the e.u. will the deal hold the euro zone together or have member states simply papered over the cracks in europe's foundations. corona recovery deal and the e.u. rebound that's our title. and it's a pleasure to welcome our guests eric is an american journalist who has written for the los angeles time amongst other media outlets and he says the summit exposed once again how much disunity there is in the european union. and we're very glad to have with us public talk of tomasky he took us to excuse me he is a polish economist and senior associate at the german institute for international and security affairs he says we must reform the member states now or will face the same problems again with less time and fewer instruments. and great to have with us once again

and i had to pay more than $100.00 euros for a doctor and antibiotics. and the job she just took her commission she didn't help at all. and mariana's case the broker wasn't a company just a private individual she charged $300.00 euros for mariano's travel costs and $150.00 as a fee. that's a double violation of the law job brokers in romania aren't allowed to charge commissions to check this we call a romanian company with online offers of good jobs in german farming we ask about one job in here that it involves strawberry picking on the field or in green houses and that the contract costs $100.00 euros that is a few we're told the pay is $9.00 euros $35.00 an hour 10 hours a day we ask about accommodations the answer is for people to a room the bed costs $6.00 euros 90 a day to be taken out of our wages and the bus trip there and back cost $240.00 euros just one short phone call and we've already uncovered an illegal thing as well as over time and transport i get out in prices. reports of rising numbers of coded $1000.00 cases that farms and meat proces

i currently have my long euro trade on. emerging-market traits -- i think just because folks are optimistic doesn't mean it is the end of the -- francine: what move zero if we get a stimulus deal today? -- what moves euro? bigan: the deal itself is for medium and long-term. a lot of it has been priced, we have been talking about this for months. if the headline hits that a deal has been agreed, i do not think euro is going to move too much because it is a matter of timing. it has comepened is earlier than expected. we did not expect it to happen this weekend. we thought this would go before summit in august rather than july. good news is it has come earlier. medium term, you have a common asset. you have a sense that european leaders will come together whenever there is a crisis and do right amount to avoid risks. you talkper long run, about european rate spreads going from near zero between each other like they did a long for ago in 2004 the outlook long-term european assets is made more optimistic. short term, what will m

tax on every 1000000 euros in profit. that was the last straw for e.u. competition commissioner my creative s. here in 2016 the european commission ordered apple to pay ireland 13000000000 euros in back taxes but dublin and apple both appeal the ruling. we're going to brussels correspondent barbara visa with us as well as our business reporter on the sullivan with me of the apple's welcome the deal so is island even though it just missed out on how much 13000000000 euro yeah that's right so there'll be a lot of parties and i've been celebrating what we're not going to do with 13000000000 euros of those seriously there actually won't be because there's really a lot of people in ireland who aren't happy about this so for starters the opposition parties in our large swathes of the public feel it's quite embarrassing and insulting that of the time when the irish government is spending a fortune on payments to try and boost the economy off the crown of ours or during the democrat or a while this is happening they're turning do

euro yen indicates stronger euro versus yen with a euro dominance. just for a second we had a 1.16 on euro-dollar. on the gyrations in the commodity space, it is a deceptive space. the bloomberg commodity index is really good math and it is 18% goal. moon, thato the index has done better. what about the rest of the space? francisco blanch is head of global commodities and derivatives and owns gold up to his eyeballs. he is like goldfinger in the james bond movie. get gold out of the way. is it dominating all of the commodity analysis? are the indexes no good just because of gold? francisco: no. thank you for having me on. we are having all precious metals. we have had a pretty good run on industrial metals, and the one commodity that has not moved all that much has been oil. around the $4045 level for a few weeks. to $45 level 40 for a few weeks. there is a question of what china will do and from a resources perspective. there is an inflation story going on, bold is the biggest beneficiary because a lot of macro factors that have been compiled. i do

that is the euros in president talking. the euro stable against its american counterpart. 1.14 at the moment. we have him talking in english now. let's have a listen. families, women, children, as leaders we have responsibilities. ,e have a democratic mandate and we have to answer that challenge by showing we are able to deal with these through concrete, real results and through decisions, not virtual decisions. so that we can move toward the future and meet our challenges. thank you. madam president. >> [speaking french] ladies and gentlemen, thank you very much. by thinking the president for his really hard work and tremendous perseverance. because the success of this european council is his success, as well. i would like to thank angela merkel for his exceptional guidance. we spent four long days and nights. this agreement is a signal that europe is able to act. accused ofoften being too little too late, here we are demonstrating that the opposite is the case. thehe end of april, european counsel gave us a mandate of des

at the high end, they see eight billion euros. it had pretty -- 2.8 billion euros. it had been 2.6 million. delivery hero had done well in the lockdowns. closed,h economies people are still getting food delivered. matt: getting more food delivered, i would say. dani burger with your stocks to watch. there can be a lot going on at the open. keep an eye on bank stocks as well as the ecb announcement it will ask european banks to freeze dividends until the end of the year. this is bloomberg. ♪ annmarie: good morning from london. we are a minute from the open of cash equities trading. the revival plan, republicans with a trillion dollar aid package to bolster the economy, proposing a cut two emergency jobless benefits, more direct payments to americans and the liability protection for businesses. louvered learns the eu is set to keep barriers to most travelers outside bloc for an additional two weeks amid rising infection rates in spain and germany. delivery hero is one of the big winners from earning season as the takeaway giant ups its revenue forecast. don't miss o

brussels gives a green light to germany's own 500000000000 euro pandemic rescue package but will that soften the blow of a serious recession in europe's largest economy and what about other even embers that don't have such deep pockets. also on the show it survived wars and the great depression but not the coronavirus brooks brothers one of america's biggest men's wear stores files for insolvency. and you scooters are popular vic cities brought a lift line on sidewalks to start the berlin has an idea to bring more order. and welcome to the show i'm stephen beardsley in berlin can europe's largest economy use its deep pockets to help domestic businesses without tilting the balance of competition in the e.u. all the top and the trust official in the bloc now says yes the 500000000000 euro german rescue package lies mostly on loan guarantees whether it can help pull germany out of a serious recession is now the question. look tonsil was rescued last month from the brink of bankruptcy things through a 9000000000 euro bailout from the german government the airline is not the only one getti

wire car scandal the german authorities are also facing scrutiny lawmakers want to know how 1000000000 euros can just disappear. and final call volunteers test out. for the head of its opening 11 years behind schedule. this is deemed to be a business on robots in berlin it's great to have you with us 4 of the biggest names in world tech are about to face questions from the u.s. congress that's a facebook amazon apple and google will be asked whether their companies with a combined value of over 5 trillion dollars of simply become too powerful the c.e.o.'s have already been getting them messages out ahead of the harry. this is facebook a data that disregards the privacy of its clients gives racist comments for your brain and hinders competitors not at all and says c.e.o. mark zuckerberg his company is so successful simply because it's the best. we got there the american way we started with nothing and provided better products that people find valuable as i understand our laws companies aren't bad just because they big. is apple is so technically dominant that others don't stand a chance total

the euro slightly weaker, with euro-dollar at $1.1414. all about europe this morning. is about fiscal authorities in the united states later. crises in europe to make that happen. it has taken unprecedented crisis on the continent to get fiscal authorities to come together in a way that was something that will 10 years ago. tom: i think that is totally correct. the question is, does it take another crisis to move forward to the united states of europe? what we heard in every conversation this morning is the idea that this is not that big a deal, given all the negotiations taking this way, that way, etc. as you well know, the sideshow here is the power between the west and the east in europe, which is almost foreign policy. jonathan: within europe, things tick along time to build. in the 1950's, no one thought that ultimately that would become the single market. when they have the single market in the late 1980's, no one thought that would become the euro zone and the monetary union. at least as quickly as it did. i don't think this is the moment where we change overnig

and who will lead the euro group to 19 nation party of countries using the euro currency the frontrunner for the job is for spain's not enough to be the 1st one to trust euro group this in the biggest crisis. low in terry martin welcome to the program anti-government rallies have filled the streets of serbia's capital belgrade for a 2nd day protesters are angry over what they see as the government's mishandling of the coronavirus pandemic a surge in new infections led to talk of curfews and a lot of critics say the sharp spike in cases is the fault of serbia's president to lifted an earlier lock down ahead of recent elections. pandemic frustrations bubble over on the streets of belgrade chaos erupted as thousands of protesters battles with police and try to storm the parliament they're angry over the president's handling of the coronavirus. the main reason we are here is to support the protesters during these abnormal times when the country is falling apart. cases have spiked across the balkan country in recent weeks serbia recorded its highest coded 1000 death toll on tuesday it forced

the marathon talks continue your leaders and a 4th day of tough negotiations for a 750000000000 euro coronavirus aid package can europe afford those talks to fail. on syria grapples with high inflation and soaring food prices syrian farm was returned to the fields facing a difficult new beginning. welcome to the business of the end good to have you with us european stocks opened lower into the new week weighed down by discord in brussels after 3 days of tough negotiations you need us have made progress but they remain at odds over how to cough up the proposed 750000000000 euros recovery fund designed to help europe cope with its deepest recession since world war 2 while some last minute adjustments have been made to a piece of the so-called frugal 4 that's austria denmark sweden and the netherlands significant disagreement remains the wrangling you set to continue later this afternoon the outcome unset. with let's bring in our financial market correspondent chelsea delaney in frankfurt chelsea what are investors there rooting for european solidarity whatever the cost or those with st

cash flow above 5 billion euros. it saw about 5 billion euros. perhaps the market might take that positively to some extent. they had previously talked about a recovery going into the latter part of the year, but the other thing it the market might be more focused on what we heard over the weekend about s.a.p. software stake in its unit through a u.s. ipo less than two years after it bought the firm to compete with salesforce so that will be something the market will be focused on, perhaps the rationale and more details behind the u.s. ipo. we will also be speaking to the sap ceo in the show at 6:40 a.m. u.k. time. let's get to the markets and it seems to be u.s.-china tensions are weighing on the dollar and that has been declining to hit a nine -- 16-month low, the lowest since march 20 19th. -- march 2019. you are seeing gold hitting a record after seven weeks of gains, the longest winning streak since 2011. a lot of that seems to be around the lower for longer rationale and concerns around u.s.-china. the u.s. 10

certainly thes risk in the euro zone, and therefore, the euro is weakening in times of risk-on, as we can see. say thatfore, i would risk-on, if it were to continue, would be more supportive, particularly against the u.s. dollar. if you were to agree on this recovery refund, this would certainly support and upwards move in the course of the year, will do not think it be decisive for the euro appreciation trend. matt: yesterday, angela merkel said that this is the worst time for european history, and she wants substantial package out of brussels. is that not a support for the currency? thu lan: it certainly is, but i do think that the market has support already, from what you remember, when presented macron their proposal for the recovery fund. that is when the euro started to appreciate. since then, it has not reacted to any political news on this front anymore, which suggests to me that the market is relatively cautious and is going to await what exactly you will agree on in the end. support sector has already been largely priced in by the market. matt: you are going to stay with us.

we are waiting for a deal to be done on the 750 billion euro package. if we do get back, there could be a new rating in europe. how would you see it? how would you position for it? bilal: that is a very good question. e.u. summit is critical. we are not sure about whether we will get a formal announcement. it is certainly clear that angela merkel is pushing hard to push a broader agreement to approve the e.u. recovery fund. i think it will go through. we are not sure whether the announcement will come on the weekend or in the subsequent few weeks. campaign from emmanuel macron and angela merkel seems to be moving toward agreement around this. , think that it is significant his recovery fund, because in addition to that, we also have germany's fiscal stimulus as well. it is suggesting there has been genuine movement toward the area , sharing fiscal risks. this could have a profound impact. we could see the continued rally and could see that euro continue to depreciate. alix: so, i wonder, as we move forward, are we going to look at the recovery plan in i

euro-dollar on the high, up by .3%. we will break this down over the next hour, particularly in regard to earnings. we talked to coca-cola ceo james quincey. francine: and what they do in terms of innovation going forward if they are looking at football or cricket with a sip of coke, i wonder if they will change to try to get people more drinking at home to the coca-cola products. 750 euro stimulus. what she said was that it was quite hopeful for the future because it shows cohesion for europe. joining us from brussels is maria. we were expecting a deal and then we worked and that -- we weren't, and then we were. we finally have a deal -- is it a good deal? overall, whene, you look at the numbers, you can say it was not as ambitious as the initial program. if you look at the allocation for a country like italy or spain, badly hit by the coronavirus, they are taking home 82 and 72 billion euros, this is money they will essentially not have to pay back. this is not extra debt will have to take on. that was a crucial redli

not only in the euro area but especially of the single markets is a very. very bad thing and what's changed the minds of the leader of the summits i think it's was the throat above the. woods of the single market but some comes to us off the corner crisis we're actually developing. and the populists in those countries can actually change the political lines of those countries so the economy divergence can cause social lot of divergence and social good of the of the day version can have a vote in the got to embark on the political unity of the you know and i think that's old of the deuce on the still did very well and that's why we have does this isn't the summit so let me ask you this eric. the dire economic prospects that are facing those southern european countries are not only of course due to corona they were macroeconomic weaknesses in spain and italy and elsewhere that preceded the crisis the. for we're determined to make sure that this recovery package essentially helps to remedy those macroeconomic weaknesses by imposing what's called conditionality

euros in loans all of the coronavirus recovery money would be raised by the e.u. taking on common debt but through its budget a common debt had been a red line for many nations earlier we spoke with clinton's 1st head of germany's evo institute and he said both sides of the debate over grants and loans had understandable arguments this is a crisis that came mostly from the outside at the same time it seems that the impact of the prices is related to previous economic conditions and i think it is perfectly understandable that the pru before in that case say well we want to know if we pay for other countries here we want to know how the money is spent of course there is a dialogue in my here because if this is to be a sign of solidarity you know that should include some trust to the countries that receive the money. as scientists at oxford university say that a coronavirus vaccine being developed with pharmaceutical giant astra zeneca showing promise after its 1st human trials but they're not the only contenders working on a vaccine dozens of big and start up pharma

jonathan: i would take the euro pushing higher over a weaker euro to try to fuel exports and everyone pessimistic about it. i think we would rather see a stronger euro and real reason for optimism on economic recovery and fiscal integration in the perceivable future. i would take that over every thing else, and i am sure others would, too. coming up on the program, will thing much out -- on the program, wolfgang munchau. this is bloomberg. ritika: with the first word news, i'm rick gupta. across the -- i'm ritika gupta. across the u.s., states are -- officialscould are warning that they could implement lockdowns again. case numbers are climbing but all but six states. the white house has drawn a line in the sand for the next coronavirus a bill. president trump could reject a measure passed by congress if it doesn't include a payroll tax cut. democrats are solidly opposed, and even republicans are cold the idea. in the u.k., prime minister boris johnson will announce $3.8 billion of extra funding to help repair the national health service. he is also due to announce plans to -- by the

tax on every 1000000 euros in profit. that was the last straw for e.u. competition commissioner my creative s. here in 2016 the european commission ordered apple to pay arlin 13000000000 euros in back taxes but dublin and apple both appeal the ruling. with the decision coming up in a few hours let's talk with arthur sullivan from v.w. business good day to yours or nice nice to see you again this ruling has major ramifications far beyond arland even beyond the e.u. what's at stake here ok so brian on one side here you have the european commission and its 2016 decree that apple owed the irish state 13000000000 euros in back taxes because of what they had said was a spokes sweetheart tax arrangement unique to apple which amounted to state it so if that ruling is upheld today that would be a major win for the or being commission the most powerful body and its ongoing battle to sort of crack down on tax avoidance across the block would also be a blow for apple i mean they can definitely foot the bill we know that the money is

coronavirus recovery package they had told into the early hours over how to pay out the $750000000000.00 euro bond they will be back later but there's no sign of a breakthrough here also coming up load up charges reach could be very expensive. for me i'm calls on the amazing being extremely terrible and cautious about russia saying it is for them to see hong kong's pro-democracy leader nathan law talks to d.w. in exile in london she says he'll continue to speak out against china's crackdown of the territory. and 76 years ago i don't hitler survived an assassination attempt now germany's armed forces on our pounce upon shouting about the man who tried to kill hitler. i'm sumi so much kind it's great to have you with us european union leaders have taken a break after their tense summit over a proposed to 750000000000 euro coronavirus recovery package went into a 4th day members are split over how much money should be distributed as handouts or as loans that will have to be repaid and whether strings should be attached to enforce the rule of law and some countries hard hit southern states includ

news live from bergland european union leaders strike a hard fought deal on a balti 1000000000 euro coronavirus recovery act which they agree on the details of loans and grants to be given to countries his hardest by the pandemic to deal reached after marathon talks in brussels that stretched over 4 days and nights. i'm sorry kelly walk into the program european leaders have sealed the deal on an unprecedented 750000000000 euro coronavirus recovery fund after 4 days of heated talks which almost broke the record for the longest e.u. summit in history leaders finally agreed on the details of loans and grants should be given to countries hit hardest by the pandemic the loans will include rule of law compliance measures meaning member states will have to show that they are up holding e.u. laws to receive the relief funds. and germany's chancellor angela merkel worked closely with french president emmanuel mccrone in order to forge the steel merkel said that she was very relieved and described the deal as a good signal she talked about how the leaders work their way toward an agreement. scott trog t