matt: good morning from berlin. this is daybreak europe and these are the days top stories. any port in a storm -- the bond rally churns on as 30-year treasury yields fly below 1.5% for the first time ever. opec plus waits for a decision from russia. -- globalimpact coronavirus cases approach 100,000 globally as the u.s. outbreak gathers pace. south korea blasts japan over its move to quarantine its citizens. italy doubles stimulus to

contain the spread. successful emergency surgery -- james dimon undergoes emergency heart surgery, temporarily handing control of the largest u.s. bank to his lieutenant. reports are he is recovering well. morning again from berlin. i'm matt miller. nejra cehic is out. manus cranny is live in vienna. we are going there to the opec plus meeting. incredibly important meeting as you will see in a moment when i show you the oil price in just a few minutes from now. i want to check on first off the number of data points after the big slump we saw in risk assets yesterday. there is unusually no sign of a .alance typically after 3%, 4% slump on

indexes, you see a bit of a bounce. we are eight and a half hours away from the open of live u.s. trading. nonetheless, u.s. futures still down again 1.25%. in just a to manus moment. crude oil at $45.43 a barrel, and the yen, which was really looked for me when i across my asset price worksheet -- the yen was 105 handle, safeng a real fleet to haven assets. let's go now to manus cranny. he is, as i say, live in vienna, been following the opec plus meeting for days on the ground now. are we going to get a decision, an agreement from russia? menace: it is a high risk roll of the dice. ministerrainy and oil

arrived back here yesterday and said if they don't all get together, there is no plan b, so the evening unfurled a little bit further. it was all very casual, and of they were where the saudi's are, so there was that plan b in formulation. in other words, if the russians arrived at this marriage of eternity, looks a little shaky, there is a plan b. they put whatever plan b is in place. preparedness for a tough negotiation period this morning in vienna. there's nothing that galvanizes more than the speed of pot -- more than the speed of price destruction you are seeing. the equity market, that volatility in the equity market, the collapse in demand permeates

into the commodity market, and seal thehat may russians to take action. we understand at the end of the plan b meeting last night, there was a discussion to extend one .5 million barrel cuts to the end of the year, so there is a formulation of a backstop. maybe the russians would arrive and make sure the marriage remains intact and on a high level. something -- of there are dark clouds over the skies of vienna, and that particular piece goes on to a whole other ending. matt: yeah, the weather is not fantastic. the knowledge, though, is great there. great to have you there. let's get over now to maria tadeo. she is standing by in brussels.

global cases of the coronavirus 100,000.ng the u.s. outbreak gathering pace. spending.ling its give us the latest on the coronavirus. maria: the obvious question at this point is -- are we going to see those numbers peek? none of the data out there seems to be pointing that way. nothing suggests we are headed to peak virus. global cases now pushing 100,000. if you look at china, the numbers are at lows, so anywhere , the logic is the more people your test, the more you will find, so you should expect numbers to increase both in the u.s. and in europe where you see countries adding on a daily basis. it would focus now on france because yesterday we had a big

increase of 180 cases pushing the total to more than 450. that really is the core of the disease in europe. the government saying they're going to put on the table 7 billion euros to try to kickstart the italian economy to stimulate the economy, but the question is -- is that going to be enough. it's double the amount that was floated at the beginning of the week, but the issue is when you look at the data we've had, it's very backward looking at you also have to keep in mind the average rocketed in the space of a week, so none of the data we have serves any purpose at this point. when you have to look at bookings, hotels, those we know were down in italy, and secondly at this point, how will that fix the issues in the north of the country? the reality is the north of italy still very much restricted by the coronavirus. matt: thanks very much, talking to us about the coronavirus and

spending out of italy. global central bankers are cutting interest rates beyond their financial crisis era lowe's, underscoring the hit to economies from the coronavirus even as investors question the healing powers of that monetary policy in the first place. we heard from policymakers about the coordinated response to the outbreak. i would say is we are now going to have an interruption where we are going to have the severe deterioration. >> the level of coordination is extremely high. >> we are coordinating with her majesty's treasury to make sure any initiative we undertake are complementary and they collectively will have maximum impact. >> the strong sense that we are all on the same place dealing with exactly the same thing. >> the frankel take all necessary steps to support the economy and financial system. plex it will help to moderate or mitigate some of that inevitable tightening of financial conditions.

matt: joining us now for the hour is jane foley, head of fx strategy at rabobank. ask you, what is your response to the coordinated monetary policy moves we have seen so far. have they gone far enough, or is it even too much? >> i think we will even see more. we still have the bank of england to go, ecb to go and others. got quite a big response from the bank of japan and we have to draw out of this a couple of things. first of all, policymakers -- central banks and other policymakers that are experienced. they understand the necessity to move quicker, and another thing is the fiscal policy response. this is something which has really hurt tourism in a number

of asian countries and will continue to hurt in europe and the u.s. fiscal policy response has a very real part to play in trying to shore up demand and keep people in jobs and those sorts of areas, too. again, this is about the interaction not just of monetary policy but the interaction between monetary policy and governments and what we have seen is i think quite a rapid response. for instance, this week we have quite a u.s. issue significant fiscal package. there could potentially have been more. in terms of what we've seen, yes, i think it has been quite a rapid response and i think we've got a long way to go before all of the countries have laid out what they are going to do. matt: is there a concern that

this time it is different in the just that they are not dealing with problems on the demand side but also supply-side issues? we hea from warnings that you could see inflation that was not a worry, obviously, during the financial crisis. does it concern you they may have to do an about-face? >> yes, it does. inflation is a potential risk, and it is quite interesting from an academic perspective because what we saw last year with the trade wars between u.s. and china were questions about globalization. the world has become reliant on these very sensitive supply chains, how if something happens in china, it affected supply chains elsewhere. if you like, because of the trade wars, because of the suspicions from the west, you could say we could have reached peak globalization.

perhaps there was some sort of retraction of the move we have been making toward globalization, and if you like, this epidemic could be considered perhaps the heart of that same push. markets are considering if they are too reliant, if there needs to be more localization of fromies, for instance, so an economic perspective, it is -- whatteresting that this crisis will do as i follow him to trade wars, perhaps limiting the amount of globalization we will see. matt: it is absolutely fascinating. what do you think about the supply chain? what does the work at rabobank show us about how the supply chain looks now? are they getting back to work? our shipping lines starting to move again, or are we still in a deep freeze? >> if you look at some of the data with respect to pollution in china, that has begun to

creep up again, so from that therective, it does seem are operations that were not going a few weeks ago, but from some terms, that could be too late. for the fashion industry, which ships a lot of goods from china to europe and into the u.s., no doubt, and some fashion experts suggesting a couple of weeks ago if the fashions were not already in a ship on their way, perhaps they would reach shops too late for the season, and that would mean they would hit the shelves a little later on the year and be discounted, so already i think for some firms it could be already too late and we could see a real hit to demand and for others, as you say, we could have inflation potentially if there is a shortage of various different

components or parts. matt: another fear to add to the mix. jane foley you're going to stay with us for the hour. coming up, we are live from the opec plus meeting. we will go back to vienna and be joined by bob mcnally. don't miss that conversation with manus after 6:30 a.m. london time. plus, treasuries continue their incredible rally with 10 and 30-year yields dropping to fresh record lows. how low can they go? we will talk about it in the chart that matters. this is bloomberg. ♪

matt: this is bloomberg daybreak: europe. good morning. treasuries continue to rally as

investors by bonds. >> the 10-year yield hitting record lows. the 30 reaching that 1.5%, actually hovering around 1.4%. the 10-year treasury yield -- the coronavirus continues to impact the global economy. everyone is trying to ease the situation, but many on the street say this could potentially took the global economy into recession. we could see more flight to safety and more investors going into treasuries, and those yields could potentially come lower. matt: very interesting stuff. pretty amazing to look at these numbers. every day, you think it cannot

possibly get any lower, and that yield does continue to fall. the february u.s. jobs report will provide a snapshot of the labor market health and the u.s. before the coronavirus outbreak. what do some of our top guests think ahead of the release? payrolls growing in february saying the coronavirus impasse -- impact likely to be reflected in the march jobs report. impactement noted some of coronavirus on tourism and leisure which could reduce services and payrolls contribution, and it would also impart some upside risk to the , andge hourly earnings with think the pace of u.s. payrolls is on a general slowdown trend due to moderating economic growth and signals from jobing indicators such as

openings and nfib hiring intentions. we will hear from larry kudlow, national economic council director this afternoon. that conversation at 2:30 u.k. time. definitely one you don't want to miss if you are focused in on the u.s. economy, and the fed, speaking of, surprise on tuesday with an emergency half-point interest rate cut to cushion the economic impact of the coronavirus. one of those who voted wasn't dallas fed president robert kaplan. he spoke exclusively to global impact and policy editor kathleen hays. >> the situation has changed pretty uniquely the past couple of days. you are right, if you asked me two weeks ago, i was saying publicly let's see how this unfolds and i will make a judgment at the meeting. it is too early to comment. what happened once the virus got to south korea and then to italy and then it was clear there were diagnosed cases in the united

states, for me at least, the probability of material deterioration in the u.s. economic outlook, the probability of that increased to the point i came to the view we were going to need to take action at the fomc meeting, and then i felt the situation is changing so rapidly that i thought it would be wiser to act now and act boldly where it could make an impact. here is what i mean by that -- it's not going to help with obviously the number of diagnosed cases. it is not going to also get people to want to go out. it's not going to do anything reaction containment if diagnoses spike. we will end up in a period where we have a severe slowing of the economy that lasts for a period of time, a company that is likely to be tightening financial conditions and what

monetary policy can do is if we go into this with somewhat easier conditions, i thought -- and i still believe -- it will help to moderate or mitigate some of that inevitable tightening of financial conditions that will happen as a in casas this spike and the containment, so the judgment about the wisdom of this is more looking ahead to what is going to happen in the next six to eight weeks, not what is going on right now, and in that regard, i feel as confident today that we did the right thing as i did on tuesday, and i will say one other thing -- the number of people -- a number of people had a reaction because the market on the day we did it sold off, and i will tell you if the market had gone up that day, that would have given me no comfort whatsoever that we made the right decision, and by it selling off, it did not make me feel like it was not the right decision. this is not about conditions now. it's not about the current stock market. it's about mitigating a

tightening of financial conditions that will likely happen some number of weeks from now, and increasing the likelihood that as we come out of the situation, we can come out more strongly. matt: that was dallas fed president robert kaplan speaking to our global economics and policy editor kathleen hays. jane foley from rabobank is still with us. what do you think of the fed's surprise move? the financial conditions explanation, you know, makes sense that we just heard from robert kaplan. it's pretty basic. do you think they have to do it again? market is already signaling they will go 25 basis points again quite soon. the question is when they will actually hit zero, and the expectation is they could reach zero as quickly are a soonest june, which really is not that far away. market expectations are very much focused on this risk of

recession. the u.s. could hit recession, japan may already be in recession this quarter. the word recession has certainly been bandied about quite freely now, and those are the risks. this is the risk the coronavirus could bring to demand an economy is which very many of them -- countries like south korea, were already very vulnerable, so interest rates, yes, they are going to go aggressively lower, and then, of course, what can fiscal policy limit the economic impact of this crisis? matt: what do you expect in terms of fiscal policy? we heard about $8 billion already. of course, that's less than even what the italians are spending. are we going to see more of that out of the u.s.? do we need to? >> it's very difficult to answer that question with precision

right now, but certainly i think most people agree there is a significant risk that there may be more, but obviously it ends -- it depends on how the initial effects managed to stave off the worst in terms of both human and economic effects. in terms of panic, i think that .s an important thing clearly in italy we have seen a really big budget, and south korea, a really big budget. the u.k., their focus has switched to trying to balance out the economy to really trying of the the impact coronavirus. again, there is a lot of fiscal emphasis at the moment. germany is interesting. they have added measures this week, but they have not yet, or they try to stress this was not a fiscal program generally, but i think that italy, as fears of

the coronavirus continue to build, there are concerns about what they will do to try to help ease the impact across the euro zone. matt: we are going to keep you with us a little bit longer. whisper screene there. we will talk about jobs as well and what else we can see, what we can use to gauge the strength of the economy and which currencies benefit the most. coming up, jp morgan's ceo is recovering from emergency heart surgery. the bank says it is putting his lieutenants in charge as he recuperates. up next, we bring you more on that story that you need to know. this is bloomberg. ♪

matt: this is bloomberg daybreak: europe. jp morgan's ceo has undergone emergency heart surgery. it was caught early and the surgery was successful -- that is what jp morgan said in a statement about chief executive officer jp morgan -- jamie dimon's emergency heart surgery. he felt chest pains before work and checked himself into a hospital. that might have saved his life. as the most prominent executive and global banking, investors were very much concerned, especially as the surgery comes at a turbulent time and financial markets due to the impact of coronavirus. shares fell about 1% and post market trading. placedan said it copresidents in charge. an analyst at the bank is in capable hands and added that jp morgan has perhaps the deepest bench in north american banking. matt: thanks very much, out of new york on this jp morgan story. we will continue to cover that

for you throughout the day. , a promise from bank of england's mark carney. ammunition to combat the virus. we will be hearing what is on offer. this is bloomberg. ♪ tv just keeps getting better.

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matt: good morning from berlin. i'm matt miller. this is bloomberg daybreak: europe. these are today's top stories. port in a storm -- the bond rally turns on as 30-year treasury yields slide below 1.5% for the first time ever. global stocks slump along with oil as opec plus waits for a decision from russia. widescale impact -- global coronavirus cases approach 100,000 is the u.s. outbreak gathers pace. south korea blasts japan over its move to quarantine citizens and italy doubles spending to contain the spread. emergency heart

surgery. jamie dimon undergoes surgery, a heart operation, temporarily handing control of the largest u.s. bank to his lieutenants. the bank says he is recovering well. take a quick look at the risk off mood and markets today, continuing a global route from yesterday. we had bigger than 3% drops in new york. that is continued through asia and now we see futures down across the board. if you look at s&p futures, they are still down. if you look at u.s. yields, they are still down. oil prices still down, and the yen is gaining against the

dollar with a 105 handle. juliet, we start with you in singapore. what are you looking at? mentioned that money going into global bonds, which has seen yields globally touch some of these record lows. i'm looking at particularly what has been happening in the china bond market and also in australia. we saw the yield on china's 10-year benchmark hit levels not seen since 2002, and australian yields have recorded all-time rba on a week in which the cut rates to an all-time low. the nikkei has tested lows today as we see money going into the yen, which you just mentioned, and goldman sachs said the yen at 95 to the dollar is a realistic target, albeit with a caveat that it will not happen overnight. matt: thanks very much.

indian markets tumbling today. what is behind those moves? is it just a continued global route? >> good morning. yes, it is a global route, but you have domestic factors as well. it is a sea of red across the board. 3%.ave seen a cut of about broader markets are also seeing a sharper cut, and actually, it is the banking stocks in focus. volatility has surged significantly today. a rise of almost 12%, and as i mentioned, banking stocks, they regulator r.b.i. has put the bank on the moratorium for almost one month. due to rising asset quality issues. falls as much as 85%, the stock falling to levels of

8.5%, and there is a ripple effect that can be seen across the board for banking stocks. the likes of sbi confirmed yesterday the board approved they will be looking at investments at a want to highlight the indian rupee which was down for the second straight touching the mark of 74 to the dollar. matt: and murray, you're looking at save havens this morning and they are catching a bid. what do you see? >> we see save havens surge. you see fear spread through the market. 1.40 4%. we see and massive appetite for treasuries. $67 an ounce on gold, many are questioning when we will hit the 1700 mark. maybe today or next week, which jeffrey gundlach says it is the best thing to own. .nd the euro swiss franc we have seen massive demand for

the swiss franc. it is up to percent for the year, continues to grind lower. deutsche bank says it may hit parity. that would be a huge move, something we have not seen since 2015 when the s&p lifted that currency cap. .att: thanks very much of course, and murray as a new york forest covering everything. wall street right now. let's get to the first word news. i will do that. the number of reported coronavirus cases around the world is nearing 100,000 according to official statistics . over 3300 people have now died and around 55 thousand have recovered. the world health organization is threatening to name countries that are not doing enough to fight the outbreak -- name and shame. central bank coordination over the virus outbreak is extremely high, at least according to the bank of canada governor.

the central bank followed the fed in cutting by 50 basis points. he says there is a premium to acting in concert on policy but admits that some central banks have more room to maneuver than others. the coronavirus appears to be straining the u.s. health system . medical workers are warning of supply shortages, and hospitals are uncertain when they will be able to test suspected cases. lawmakers are warning the government will fall far short of its goal of testing one million people by the end of the week. russia and turkey have announced another cease-fire over the deepening crisis in did, syria. presidents putin and erdogan are hoping to patch the increasingly fraying relationship between their countries. the pact fell short of what president erdogan was after. it did not establish a new zone of control to resettle millions of refugees.

global news 24 hours a day on air and quicktake by bloomberg powered by more than 2700 journalists and analysts and more -- in more than 120 countries. just over a week left for mark carney at the bank of england. he is not shying away from commitments, joining federal central bankers with hopes to cushion the cost of coronavirus. he signaled he is hatching a plan to go beyond rate cuts, sending the pound to a fresh one-week high. >> the bank will take all necessary steps to support the u.k. economy and financial system consistent with our statutory responsibilities. herre coordinating with majesty's treasury to ensure that any initiatives we each undertake are complementary and that they collectively will have maximum impact consistent with our independent responsibilities. matt: jane fully from rabobank is still with us.

what do you think of how much ammunition carney has right now? >> there's a couple of things that come to my mind straight away and those are funding for lending. this was about trying to support small and medium-sized businesses. if you like, is similar to what other central banks have tried to do. certainly in the last few days, the last couple of weeks, we have seen authorities tried -- i thought is around the world try to put steps to support small and medium-sized enterprises. i lines but perhaps also other businesses on the front lines of those affected by the coronavirus. i think something like that is

likely from the bank of england, thinking about what mark carney was trying to get across yesterday and interestingly, the , on march the 16th, he indicated something in his question-and-answer session that again perhaps he will be working with the treasury in order to put something out there. yes, we just had an interest rate cut at the end of the week, but i think it will be more than that. i think it will be trying to pinpoint certain points of the e-card me -- certain parts of the economy which are most at risk, certainly in the immediate term, from this crisis. matt: nonetheless, nothing seems to move the pound that much. we are stuck in a pretty tight range. is there anything that matters as much as brexit? is the coronavirus going to move the currency? to january, the market was very much focused on the bank of england.

there was speculation the banquet interest rates at the end of that january meeting. it did not because we did have a tond in confidence related perhaps this strong showing of the conservative government at the december election. the market has been a little bit schizophrenic when it comes to the u.k. this year, partly focused on the bank of england, partly focused on these brexit talks. these talks started in brussels at the start of the week. these talks will continue every two to three weeks either in london or brussels for the duration, and these are important because they define the relationship the u.k. will have with the eu from january and there is still the threat that the u.k. could pull out of talks if they have to make too many compromises so that the threat of this no deal is a concern so this factor and be

well they/won't they with respect to what the bank of england will do is a factor. matt: how bad would no deal, falling back on wto trade rules be for the currency? think, would be, i really quite bad, at least initially. i think there would be fears of massive key was borders, supply , certainlyculties initially. how long it will take for investors to come back into sterling will depend on what happens. do we have these really long queues? are they going to be managed? how quickly will the government get technology in place? at the moment, the government has said it will take five years to get the technology in place. that's a frightening prospect for many firms, particularly smaller firms that could be squeezed if supply chains are

disorderly. in addition to that, we had the threat that if there is a holdup foodstuffs could go up in price, and that would hit the poorest members of the community. that would not be obviously considered to be a positive thing. the study on that scenario is already extremely vulnerable. matt: you're going to stay with us a little bit longer. we are live from the opec plus a meeting in vienna. we will be joined by bob mcnally. don't miss that conversation with manus cranny next. this is bloomberg. ♪

matt: this is bloomberg

daybreak: europe. i'm matt miller here in berlin this morning. let's take a quick look at what is going on in terms of the selloff in global equities. u.s. equity indexes closed down more than 3% yesterday. s&p futures indicate another negative open today. is not going to happen for a while, but u.s. stocks look like they are going to come out of the gate down and euro stock futures are off considerably more than we see anything else. a high-stakes diplomatic poker game is happening in vienna today between russia and opec that risks a price crash if it backfires. manus cranny is there for that meeting. tell us all about it. menace: thank you very much. i've got a guest who will do a better job than i could do, and that is bob mcnally. what does success look like today with the russians coming back to town?

>> success is minister novak signing off after some more kicking and screaming to a 1.5 million barrel a day cut, at least for the second quarter of this year if not for the rest of the year. menace: what happened last night? left and went to the creation of where societies were. >> i think that was to get plan a across the finish line. panic is growing by the minute. demand forecasts are getting worse. i think with the ministers did -- what the ministers did was to aze they have to resort little brinksmanship to get russia across the line. i think they have to go to novak point -- 1.5ed one million barrels all year, not just in one corner. that will make it easier for novak to convince russian 1.5ucers to perhaps go with in the second quarter.

i expected trade, but we will see. panic is worsening. demand forecasts are falling. this is a no kidding emergency, and they got to get russia to yes. if theyif they wobble, prevaricate, what is that due to prices? do you remember some colossal collapses. >> no question, if they commit an epic policy failure by not cutting production, i think we could easily see a revisitation of old woes in around $26 a barrel if not lower. remember, the only reason oil prices stop falling at $26 a barrel in 2016 was because russia agreed to conditional cuts. back then, before then, they thought shale oil provided a net under oil prices. as we sit here today, everyone realizes there is no net under oil prices if opec does not act. theoes that stiffened

resolve for russia? >> it does. the russians are a little more comfortable with oil prices, but they do not want to see certainly below 42. that is when budgetary problems get worse. i think the russians realize there is no net under oil. if they fail to act, we will go well below the threshold for pain, so i think the russians, you know, are ailing the heat as well. that is why i think ultimately we will have a deal. menace: you also maintain there is a global geopolitics and that this marriage that would last for eternity gives global credibility in a way -- i don't know if credibility is the right word. >> no question russia has obtained enormous strategic advantage and financial and monetary advantages from this new relationship, this marriage, if will, with riyadh and abu dhabi. russia loves it that we are all going to sit here waiting for minister novak's plane to emerge from the rainy weather and for

him to step off and announce if we are going to have a deal or not. this is enormous prestige for russia. i don't think they will walk away from that very quickly, especially since they know something needs to be done or oil prices will collapse. putin is enjoying this game, perhaps more than russian producers are. menace: that is the downside -- manus: that is the downside. the dark before the dawn. >> in the dawn, you want to just buy -- i think pretty soon, we are going to have a once in a generation opportunity to buy oil and gas companies. the consensus now is oil and gas are sort of like horses and buggies in 1902. it is a dying asset. it was suffering from terminal cancer before this flu virus came along and one wonders what they are going to do with their stranded assets. mainly because of the contention electric vehicles are going to

out of business in this decade. i'm saying we are substituting wishful thinking for sound analysis. china ev sails are imploding. policies are not nearly strong enough to effectuate the demand change folks are expecting. in a few years, i think we are going to wake up and put this coronavirus behind us. demand growth is going to be two to three times stronger than the consensus expects and we will be short on supply. the price is going to have to return and do the old job of balancing the market. boom is going to follow bust. getting back to the spring producer, they have a choice -- they can decide to cut production or not, but when we get into the boom phase, they will run out of supply. : thank you very much for being with us. there you go, matt. run the risk of a huge policy failure, but not the base case scenario. the cloudsa look at

and have a look at the old clayton. it's a plane, boss. matt: fascinating conversation. as we continue to monitor the spread of the coronavirus, remember you can check on your bloomberg terminal to see the latest breakdown of the spread. cases and the one-day percentage change illustrated by those bubbles. shoots down wall street's v-shaped recovery theory. we will tell you why and anne-marie's morning call next. this is bloomberg. ♪

matt: this is bloomberg daybreak: europe. it's time for today's morning call. says av-shaped recovery

theory that is floating around wall street will not be easy to achieve. anne-marie: good morning. we keep hearing everyone talk about the potential for this v-shaped recovery here in new cold but citi is pouring water on it. they say in this note that it's clear to investors that the end of the 2019 growth consensus is not going to materialize. they say rate cuts will not lift all boats in the end, and they say the most vulnerable include russia and chile, but they do not think we are going to see a v-shaped recovery. they say it will be far more protracted really around the world. interesting stuff. it is a debate we have been hearing for quite a few days now, quite a couple weeks, actually. jane foley is still with us. what do you think about the possibility of a v-shaped

recovery? >> people were talking about it a couple of weeks ago, but i'm surprised they still are. the shape with the coronavirus has become so much more obvious now. when we go back to a couple of weeks ago when people were talking a lot about me-shaped recovery, i think we were focusing just on supply side difficulties connected with china. china obviously at that point had locked down. we knew various industrial sites were closed. hadnew the supply chain difficulties and consequently if you are talking about a manufacturing firm, you think of the second quarter, third quarter, they can handle that, but we have come a long way from them in terms -- a long way from then in terms of what we believe about the recovery and it's quite obvious this is more about demand as well. when you add that into the equation, it will be a lot more difficult. if you think about the airlines and how affected many of the airlines are, will that travel

just be put off and on again later in the year? certainly business travel that did not happen now, that will not necessarily be back-to-back, and if you do not go to a coffee shop for two or three weeks, it does not mean you're going to have twice as much coffee in the next three weeks. quite clearly in my view and i think in most people's view, the v-shaped recovery is old hat, and i think it is now about recession and the fears of recession really are spreading. asia and theecting u.s. as well. thank you for joining us on what is set to be a pretty risk off day for markets after we saw a real drop yesterday in stocks around the world. that is it for bloomberg

daybreak: europe. the european open is up next. when you are traveling to work, remember to tune into bloomberg radio. it is live on your mobile device anywhere in the world, but if you are in the london area, you can tune in on digital radio. this is bloomberg. ♪

anna: good morning, welcome to "bloomberg markets: europe." i am anna edwards alongside matt miller in berlin. today, investors pile into bonds, sending benchmarks to historic lows amidst increasing global unease. european futures point lower. the cash trade is less than one hour away. ♪