♪ ♪ ♪ ♪ >> good morning from london. cehic, with manus cranny live from dubai. these are today's top stories. u.s. futures rise after the s&p's worst drop in two weeks as new york and new jersey deaths double in three days per u.s. officials sugges suggest china concealed the extent of its outbreak. the bank of america ceo expects the u.s. economy to bounce back

quickly after the crisis, as u.s. jobless claims could hit in even bigger number than last week. and daily fatalities continue to rise in spain and the u.k., as france proposes an economic rescue fund. let's get the markets. sixttle weakness in asia, a percent drop for the s&p 500 over the last two days. futures are positive, though, up over 1%, and european futures pretty much unchanged. it's difficult to look at fundamentals, for where equities go. a lot of people looking at technicals, saying there is a range we could fall into in the next few weeks. is10 -- the 10-year yield steady, but if we see a renewed selloff in equities could more money move into treasuries? the bloomberg dollar index is steady today with yen weakness. have we found a floor on oil?

we are bouncing back a little above $21 a barrel for wti. now, a classified u.s. intelligence report seen by bloomberg says china conceal the extent of the coronavirus outbreak within the country. u.s. officials suggest beijing intentionally under reported total cases and deaths from the disease. the outbreak began in china's hubei province in late 2019, but the country publicly reported only 82 thousand cases and 3300 deaths, according to data from johns hopkins university, half as much as the u.s., which has the largest probably reported outbreak in the world. in a daily press briefing, president trump echoed that view. >> their numbers seem to be a little on the low side, and i'm being nice when i say that, relative to what we witnessed and what was reported. coronavirus deaths in the

u.s. continue climbing sharply in the states of new york and new jersey, their governors releasing data showing doubling fatalities in the last three days. the new york death toll reached almost 2000 victims, while new jersey reported over 350 deaths. orders and employment at u.s. theyries contracted, as grapple with pandemic related demand destruction. the latest jump in supply shows . joining us, our guest from dansk a bank. thank you so much for joining us. we have seen a bad couple of days for the s&p 500, but a lot of people saying we have not yet had true capitulation in the equity market. do you expect that in the next couple of weeks? >> no. i think the capitulation on march 13, the 16th, 20th of

march, i think we're care the worst volatility -- through the worst volatility and two reasons for that. first, the fed has been very aggressive. and secondly, if you look at the number of new cases of the virus, it is peaking. so i think from an equity point of view, not saying it will fall or we will not have down days, but in terms of volatility and lows, it is a fair chance we have seen the lows. looking at the s&p. and in terms of volatility, i don't think we go back to where we were. nejra: interesting. the s&p 500 would have to fall another 9.4% to get to the level it hit on march 23. so if you think that perhaps we are not seeing a big capitulation to come in equity markets from here, what does that mean for fixed income? my question,, if we see a

further selloff in equities, does the money move to treasuries, does the 10-year yield retest the record low of 31 basis points given what you just said? what you answer no -- would you answer no? thomas: i think fixed income is a little stuck. the 10-year in the u.s. trading around 60 basis points, there is massive q.e. support. but i do think that would keep it stopped there, so you continue to see it stabilize, a little higher, but fixed income will be stuck around 60 basis points. ijra: forgive me, thomas, lost you there for a moment. we are having a few audio issues. i did not hear the end of your answer. but let me ask you about the u.s. treasury play. last week, we got that number

that shocked the market and sell resilience in equities following that. u.s. equities are higher right now, futures. will we see the same reaction if we get a number north of 3 million today? thomas: yes, and that's a good point you are raising. that was interesting, we saw that number, for five or 10 minutes the market reacted negatively, but turned around. to some extent we know these data will be so awful, that we have never seen them before, but to some extent the market is aware of that. we know we are having a deep recession now, but at the same time you see central banks really stepping up, doing unlimited q.e. and credit easing, when it took them nearly four years during the global financial crisis. interesting. so, we might see resilience in

the u.s. session today after jobless data. in terms of what is being priced into markets, whether a recession, a double-dip recession, a depression, all kinds of calls are out there for l-shaped u-shaped, recovery, the latest is actually a nike "swoosh." what is priced into the market if that is possible to gauge in terms of recovery? thomas: that's a very good question. we are discussing that a lot. say thewe see it, let's equity risk premium for example. there, you can say we are at lows, but not substantially beyond one standard deviation. the market is pricing a very alsorecession, but it's

important to note the market is not pricing a long recession. the market is to some extent buying into the story, that you will have some kind of recovery in the second half of the year and you have economies opening. what is the balance of risk here? the balance of risk, i would say if you look at it from a medium-term perspective, i think equities in three to six months from now will be higher. i think the base case has to be that you have a very deep recession, but some kind of recovery in the second half. for whatever reason, if the virus comes back or we can't open economies, i don't think the market is focusing on that, the market is saying that cannot be the base case. nejra: ok. certainly we saw jeff gundlach, howard marks, jim rogers focus on that much more pessimistic scenario yesterday. we will carry on the conversation with thomas for the rest of the hour.

great to have you with us. thomas harr from danske bank stays with us. e.u. nations are setting out competing visions of how to deal with the coronavirus pandemic consequences, as governments are at odds over how to cook -- cushion the economy. one key disagreement, mutual rising debt, which is popular in hardest hit countries like italy and spain, but germany and the netherlands are pushing back. in the u.k., almost one million people have claimed universal credit welfare payments in the last two weeks, up from 100,000 in a normal fortnite. the benefits are designed to help people if they become unemployed or are on low income. the surge coincides with when the u.k. first imposed dramatic restrictions on business and the public. president donald trump will meet with oil executives reeling from a massive drop in prices, as saudi arabia unleashes a record volume of crude, escalating a price war with russia. the president says he expects those countries to settle differences, saying they are negotiating at i think they will come up with a deal.

the federal reserve is letting wall street banks take on more leverage, to deal with the severe lack of liquidity. the fed is making clear the move is for banks to expand balance sheets as appropriate, not so lenders can increase capital distributions like dividends. global news 24 hours a day, on quick take powered by bloomberg powered by more than 2700 journalists and analysts in over 120 countries. coming up, we hear exclusively from bank of america ceo brian moynihan on why he expects the u.s. economy to bounce back once the coronavirus health crisis is resolved. this is bloomberg. ♪

manus: this is bloomberg daybreak: europe. manus cranny in dubai with nejra cehic in london.

a quick check on the markets. downs innged close italy and germany, there is concern about the duration of the coronavirus hit. our guest host has said he expects a deep contraction in the second quarter, then a recovery. brian moynihan, optimistic. theing at the money, in second quarter do you want to be long dollar or yen as your protective trade? do we test 1.3%? leverage,tends the wanting wall street banks to extend leverage. after the rus, sians finally admitted they cannot produce oil at these prices. bank of america ceo brian moynihan said he expects the

u.s. economy to bounce back fairly quickly once the coronavirus health crisis is resolved. take a listen. brian: as we went through january and february, we saw with consumer spending money at table --ster rate double-digit rate since 2019, so the economy will probably grow faster than people projected. into march when you saw the situation, even with the impact in march, we will still see consumer spending in the aggregate on march, this is not a small sample, up for march, not a lot but two or 3%, and year-to-date up almost double digits. that is faster than last year versus the year before. path, buty is on this as he watched march play out it has changed dramatically. so what the federal reserve did, starting a lot of liquidity programs to stabilize the markets, congress passing a steaming this bill to keep

people employed. at bank of america, we told our teammates they have a job here and that is important. to the extent we keep people employed, keep cash going to households, that will be terrific and keep a baseline of the economy growing. the other question is how to help small businesses do that, and a program has been announced, beginning friday. the key to that, how do we get that money out quickly? the banking industry, on behalf of congress and the president and the administration, they developed a set of regulations. they are in process, they are starting to publish them. we just ask customers to be patient. my advice, go back to their bank who they already have a lending relation with, that kind of documentation. work with those banks. we have customers come to us, and we will come through if they desire into the program, and it will be very good because they can continue to pay their employees. that is what it is designed to do, and also cover some of her

cover some overhead to help small businesses. we are activating thousands of people to help take applications, a huge digital presence, and if everyone can do it in orderly fashion, it will be very good for the u.s. economy. >> all of us in our own ways are trying to live day-to-day, week to week and get through this crisis. some economists are talking about possible demand destruction, permanent reduction in consumption because of the crisis. as you look at it, is there a risk of that? how large a risk? brian: at the end of the day, one of the things that's great, if you think about the throughput of the u.s. economy, with the amount of stimulus, amount of fiscal support coming, amount of monetary support, if you look at economists, 25% down in the second quarter and working their way up, the sheer amount of dollars, $5 trillion, is overwhelmed by the amount of support coming into markets. all that is geared to getting --

faster. there's no structural issue in the economy. it is a health care crisis, and if you mitigate that you will see on the other side of this a rebound, what are economists say. as people adjust the second quarter down more due to unemployment, people are guessing that will happen this week, they will be a deeper downdraft, but most economists, economists, believe on the others of this is a reversion to where the economy almost gets back to the same size sometime next year that it was prior to this, which is a pretty fast turnaround. i think that that's the core belief. because you aren't changing anything fundamentally about the business cycle, what's going on. you are saying, if you get by this virus, it works. if you look at china right now, you see the data getting stronger. are on the fact they others of the situation, and you are seeing, we are seeing when i talk to our commercial clients, the factories they work with are at 65%, 75%, seeing goods and

shipments coming out of china, seeing factory start up even in some places that were most affected, people going out and shopping. the question, when the consumer feels comfortable going out, going to restaurants, going to shopping, doing things like that. that will come when the health-care crisis is solved, and that obviously, there's a tremendous amount of talented people and the best health care in the world working on that every day. when that happens, that is when the behavior will come back and it is just a matter of how fast we can get there. nejra: that was bank of america ceo brian moynihan. let's continue with that theme of the shape of the recovery. economists are serving up a menu soup.phabet set to be the deepest recession since 2009. here to discuss is dani burger. what letter it is supposed

to look like, an l, w, u, n for nejra? one thing for certain, calls for a v-shape have gotten fewer and fewer because this recession is so different from any other. a recession without a purpose. in other words, there is no excess buildup in the system, no bad debt that needs to be washed out through a session -- recession. instead, the pace of the economy is almost totally dependent on what the virus curve looks like. have slant upwards and more and more cases it could have lasting and dire consequences to the economy, but if the curve is able to be flattened, that means we can restart parts of the economy. again, it was healthy before this recession, and we could see a sharper rebound. this is where you get the calls for the economy and stock market to come back more quickly, similar to what you see in china with pmi's bouncing back pretty

quickly. this is something ubs agrees with, the quality u-shaped -- they call it a u-shaped recovery, saying it will happen in the third quarter of this year or between the third quarter and the first quarter of next year. i want to point out that the markets are doing not just what strategist are saying. markets, notat necessarily a slow recovery or even a quick recovery. instead, looking at december 2021 futures, more than a year out. 38%ently they price in a decline in dividend yields from the current level. i no means does that recovery in arnings, that oftem means not recovery in the economy, either. quite a dire shape the market is pricing in when you look at those measures. still a lot of uncertainty, so whether you are a bear or a bull

on the current recovery, there is a lot to fret about. manus: thank. not much v about those numbers, is there? exclusive our interview with the ceo of qualcomm. that's next. this is bloomberg. ♪

♪ manus: this is "bloomberg daybreak: europe." i'm manus cranny in dubai. london.hic is in a red headline, china is to start buying oil. we know the storage bins are getting pretty full, could run

out of storage by may, and that would take oil comfortably below $20 according to bank of america. extendednd italy have lockdown measures until after easter, and spain reported its deadliest day yet with 864 fatalities and confirmed cases topping 126,000. german chancellor angela merkel said infection rates had gone down slightly but cautioned it is too early to relax strict rules on public interaction. she also said working with german auto officials to find a way to restart assembly lines, there are concerns some cash- strapped -- may not survive the pandemic, which would spell disaster to the country's fine tuned and supply chain when it comes to restarting operations whenever that is. it comes as european leaders

still struggle to come up with a joint response to counter the economic impact of the virus, with competing visions from france and the netherlands. officials find it unlikely -- thomas harr from danske bank is with us. you have the ecb firing bazooka after bazooka, and yet there is no common fiscal response. this is what they say runs the risk of a new sovereign debt crisis, if sovereigns do not one up with joined thinking fiscal response. how big a risk is it that we get another sovereign debt crisis? thomas: i think for me, you can differences the key compared to 2011-12, what the ec b has done. they reacted much faster, where

they took years during the last crisis. but i do agree, there should be a common response, because you shock, so you should have a common instrument like the ecb has done. this is not only the debt to gdp problem, but you should say, commonuld see a response. it's not only about a new debt crisis, but if you have a new prolonged european growth crisis, and that is where i think a common fiscal response, whether it is esm or something else, i think it makes more sense. nejra: yeah. response,common whether it is corona-bonds or esm credit lines, what is the market pricing for is most likely? is looking atrket

some kind of esm measure. littleket is still a skeptical about corona-bonds. esm saying head of that would take years. but there is, the key is of course as always the germans, but you saw the french propose and also the dutch prime minister propose a much smaller deal. the numbers circulated were something like 26 billion euros, way too small. but there is hope something would happen at the euro group meeting in the next week. but i think corona-bonds, how you call it, is unlikely. nejra: thomas harr from danske bank stays with us. coming up, we hear what the

boston fed president had to say about when we can expect the coronavirus lending plan for small and medium-size businesses -- we discuss more on the markets next. this is bloomberg. ♪ ♪

manus: good morning from bloomberg middle east headquarters. daybreak era. your top stories this thursday morning -- u.s. stock futures rise after the s&p's worst drop in two weeks. new york and new jersey debt doubled in three days. u.s. officials suggest china concealed the extent of its

outbreak. bank of america's ceo expects the u.s. economy to bounce back quickly after the crisis. today's u.s. jobless claims could post an even bigger number than last week. italy's death rate eases as growth in new cases moderates, but for tallies continue to rise in spain and the u.k. and france proposes an economic rescue fund to fight the fallout. to the market, repercussions as we wake up this thursday morning. an extension of shutdown and europe, in around italy and in germany. you have a rise in s&p futures this morning. we will get into jobless claims today. of course, still looking at a drop of 6% over two days. are we trying to find a bottom or will we take another leg lower? it is getting pretty darn hard to produce oil at these levels,

and there is much talk. what do you want to be? do you want to be caught short on the possibility of a deal? you are looking a practical yield curve control as amended by the central bank. our guest host says you will see a recovery in the latter part of the year. how do you want to be positioned going into q2 gapper long the come along swiss, short on dollar? you want to be positioned going into q2? do you want to be long yen, long swiss, short on dollar? governors in new york and new jersey releasing data showing a doubling of for tallies in the past few days. the u.s. death toll reached almost 2000 victims. in new jersey, they have reported more than 350 deaths. joining us from new york is

-- anneed -- and murray marie corden. >> this is adding to the global number of confirmed cases, which this week, the johns hopkins tally is set to go past one million confirmed cases that are officially reported. as you were saying, i'm in new york, and this has become the epicenter of the pandemic. new york and new jersey over the past few days, debts have doubled. one thing happening in new york that doctors are talking about, they are seeing a surprising number of young patients, which really undermines what we first thought when we started reporting on this at the end of 2019. without the most at risk would be those that are older, but the new york health department is saying one in five hospitalizations are those under the age of 44. we are hearing other states starting to do more in terms of social distancing. florida being the latest, telling residents to stay-at-home. this is after weeks of them

rejecting to do so. now that we are seeing other states pick up on these tallies, the trump administration is weighing halting domestic lights, including new york and miami. president trump said when you go from spot to spot, but heart, so basically blocking the price for some of these hardest hit cities. : meanwhile, we got a report that u.s. intelligence is theesting china concealed extent of the coronavirus outbreak in its country. what exactly do we know? i could not exactly hear your question, but i think you wanted to ask me what was going on in terms of that report, that bloomberg scoop talking about the fact that the u.s. intelligence community and a classified report said china heads concealed the extent of the outbreak, underreporting total cases and deaths. two of the officials that spoke to bloomberg said this basically proves the numbers are fake.

president trump said he did not see the report but said chinese numbers are like. we have seen a lot of speculation that -- about if these figures are correct. one is that the government changed the methodology a number of times on how they count cases and we have known for weeks they were not counting individuals who were a symptomatically had the virus. another thing we have been seeing -- really devastating reports of these burns -- these outside theg up will be a province where the pandemic began, and that has drawn a lot of public criticism about beijing's official numbers. china right now is fourth in terms of total confirmed cases, coming after the u.s., italy, and spain. thank you so much. the boston fed president says a new lending program for small and medium-size businesses is still a couple of weeks away. he spoke to bloomberg in an

exclusive interview. >> with the rate because we did at the emergency meetings earlier in march, we reduced the federal funds rate by 150 basis points. normally, we would expect that to flow through to other financial markets pretty seamlessly, and you would see borrowers, both individuals and firms, seeing lower cost as they tried to borrow funds. inortunately, the plumbing the financial system was overwhelmed by the number of people trying to sell whatever assets they had and get into cash, so some of the interest rate reductions that we did, which were primarily at the shorting of the market, had not perfectly gone through to the rest of the market. these facilities that we are setting up our intended to in effect get the plumbing better, so the new york fed has been buying mortgages and treasury securities. i would say the treasury

securities market is operating reasonably well, the mortgage market is operating much better than it operated a week or two is not by any means all the way back. the commercial paper markets, some of the shorter-term markets are seeing margins come in, which is a very good sign. it means lower interest rates are starting to be passed on to terms and -- two firms and households -- passed on to firms and households. the primary goal of what the federal reserve is doing is trying to reduce the amount of spillovers that occur. there's not much we can do about the health crisis that was created by covid-19, but there are things we can do to limit the amount of spill to financial factts, and i think the that we quickly got our facilities up and there's still more facilities coming has helped in reducing the amount of

financial spillover, but not completely eliminated it. nara: that was boston fed president eric rosengren. competing presenting ideas for how to deal with the coronavirus pandemic. one of the key disagreements is the idea of neutralizing debt. corona bonds are popular in some of the hardest hit countries like italy and spain, but germany and the netherlands are pushing back. president trump set to meet with oil executives reeling from a as saudirop in prices arabia unleashes a record level of crude. in the u.k., almost one million people have claimed universal credit loans and payments in the last two weeks, up from about

100,000 the previous fortnight. with whereoincides the u.k. first imposed dramatic restrictions on businesses and the public. the federal reserve is letting wall street banks take on more leverage so they can afford a lack of liquidity and treasuries . the fed is making it clear the move is for bad -- banks to expand their balance sheets as appropriate. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 20 700 bloomberg journalists and analysts in more than 120 countries. we've seen a drop in the s&p 500 over the past two days, but we have seen a little bit of lift in futures in the asia session. european futures jump a little bit. sacking a six-day advance against the dollar. the dollar steady overall and oil bouncing back around $20 a barrel.

the 10-year yield steady ahead of u.s. jobless claims. the latest move from the balancexpand your sheet, extend your leverage, and the fed has reduced those leverage ratios on u.s. banks. will it work? coming up, as european countries loans,e to extend discussion of how the cost of life will be even greater. everything you need to know. that's next. this is bloomberg. ♪

this is bloomberg daybreak: europe.

the tech supply chain has been feeling the heat as coronavirus continues to spread globally, but qualcomm, the biggest maker of chips for mobile phones, says it is seeing the return of consumer demand in china. the company ceo spoke exclusively to bloomberg. >> as i look at demand, i think everyone has been hit by an while thethe consumer virus has been peeking in individual countries. it probably worked its way west, meaning that in china, you've seen an improvement in terms of demand, and you've seen that in activations for phones, for example. i think everyone is trying to put their arms around how europe and the united states are going to deal with this, but in terms of the operations of the company, the operations of the supply chain, i would say the and demand for the technologies we work on, that still seems to be quite robust. we just have to assess how we get through this near-term period in terms of dislocation

and demand, but the technologies themselves and the operations of the companies i think continue to go quite well, even given the difficulties of this environment. >> i know there is still a lot of uncertainty, but you have to be doing the math and looking forward and preparing for the worst case scenario. what is your sort of operating assumption about just how much more to get for the overall economy, which is often an indication of demand in general? you use china as a guide, it took about five weeks for their handset activations to resume to a more normal level. i don't think anyone thinks that the issue worldwide is going to be any less severe than what we saw in china, but i think what happens with companies, particularly big tech companies, and we are certainly in this category -- we are very much focused on making sure we are

positioned well coming out of the situation. if you look at the technology like 5g or the smartphones that people are using, really to get by during this environment, we know those will continue to be important to people. maybe even more so given the usage patterns that we have seen . we want to make sure we are prepared to take advantage of what we think will be a pretty significant uptake on the backside of the situation. i think there's probably less work trying to figure out how long it is going to be, at least right now, and more to make sure that your organization continues to be strong during the down tick, at least in terms of demand. for us, we continue to hire. we continue to add people in the ands that were driving 5g, that will continue, we think, through any length of time we can envision in terms of the length of this situation, but we are probably in a little

different situation than perhaps some other companies just because we know that the technologies we are working on will continue to be important as we come out of it. manus: there are major moves in the market as we speak. in the past 46 minutes, china has come out with a red headline saying they are buying oil to put into the reserve. huge consequential moves to the rallying by 1.1 percent, a near 8% rally in the price of crude. as you look at the market today, what you need to ask yourself is this -- do you want to get caught short of a deal? the norwegian krone strengthening by more than 1% at one juncture and a drop in the dollar. what you have is oil ratcheting higher. the possibility of a u.s.-russia

deal. do you want to be caught short? that is a market moving piece of news. that is what will drive markets this morning. absolutely. beijing setting up targets to cover 90 days of not oil imports and it could be expanded to 180 days when including commercial tanks. coming up, as the stock market tests new lows, one strategist is concerned about the collapse of the biggest single buying engine. we got your morning call next. this is bloomberg. ♪

this is bloomberg daybreak: europe. u.k., the government's rescue plan is coming under pressure. one million people have claimed

universal credit since the lockdown began just two weeks ago. the sharp jump in benefit claims from people either losing their jobs or suffering pay cuts highlights how the government to stopmay be too slow huge rises in unemployment. our next guest says that weak economies reduce life expectancy and if shutdowns are prolonged, there could be a greater impact and loss-of-life. let's get to philip thomas, professor of risk management at the university of brisbane. good to have you with us. i look straight to the opening line of your paper. you start by quoting, never aim for more precision than is required for the problem in hand. professor, can i ask you -- the response that we have seen so far, is it precise enough? your estimate of the precision

of the response to the problem and the scale of the problem at hand. >> i think the scale of the problem at hand is illustrated by the fact that if we actually cause the economy to go down, if we crash gdp per head by more than 6.4%, then we have a problem because at that point, we will be taking a greater toll on life then we will be saving. nejra: so what approach should be taken in terms of lockdown? a lot of people would take the counterpoint saying that that is really necessary at this point to stop the spread of this virus and insight a health crisis globally and a health care crisis globally. right, i think that is and i would not disagree with that. only buy uswn can

time temporarily. it is our main tool, but it is only a temporary measure. we actually have a problem because you need two months lockdown in order to try to contain this and return us perhaps to february levels of contagion that we were seeing, in new evidence has come from the ifo institute in munich will tells us that gdp fall by 1% for every week of lockdown. months may be what we require. it is actually going to be about the maximum we can afford. of course, it is a very difficult balance between life, death, and trying to get back some kind of normalcy. you are using a particular

methodology, the j value gdp. this is the model that you use. in your research, you talk about if we get business back to usual -- i just want to get some .umbers from you first in the thesis of business as usual, by september of this year, could you just give me an estimate of the scale of the loss-of-life? actually talking about something very severe. sort of option zero in my paper is called business as usual. it just means carry-on. it is not one that i'm advocating. i'm not actually advocating any of the options in there. as you say, they are enormously difficult decisions to take. something, then to lose in line equivalent 400,000 average lives in terms of life expectancy. the problem, the kicker is that if we do too much, then we lose

life expectancy in other places. : exactly. economists are grappling with this point generally because there has been some research out there that has actually shown that during recessions, life expectancy rises, which i know might sound counterintuitive. it obviously is different to what your research had to show, but when we come out -- that point about life expectancy rising, we are temporaryout a rather figure. if we look at the figures from the financial crash, we can see that it actually stalls and is less than it was. manus: obviously in your paper, you make a number of different points. you say you don't advocate any particular thesis, but that is for policymakers, but as you look at the response from the

government so far in terms of fiscal, in terms of monetary response from the bank of england, relative to other authorities, your assessment so far on the consequences for life expectancy and health. missed the end of that question. if i can guess what you might justified it is quite to spend enormous sums of money to counter this you norma's problem is what the trade value would say. never -- nejra -- enormous sums of money to counter this enormous problem is what the trade value would say. nejra: thank you for joining us. need forns and the

cash have removed the only buyer from the market base, the strategist said. it is a dire time to put .uybacks on hold according to dwyer, the rise in markets have been fueled by trillions of dollars in share repurchases by s&p 500 companies. manus: this was the theme yesterday that we talked about, the withdrawal of the buyback, which is perhaps a more u.s. phenomenon then it is a european phenomenon, but there's no doubt about it, banks taking back dividends is a critical issue. one story we did not spend a great deal of time on this morning and i think is important -- undoubtedly, oil will be the driver of these markets this morning, but the fed encouraging banks to extend leverage. the fed has reduced the leverage ratio for banks. i think this is quite important. if you read the piece, it goes on to really make the point that this is about the functioning

and liquidity of the bond market. foreign central banks sold $100 through marchds 25. this is critical for bond markets. ♪

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>> good morning. welcome to bloomberg markets, the european open. i'm anna edwards live from our european headquarters here in london alongside matt miller in berlin. matt: good morning. today, the markets say is anyone watching the data? futures gain as u.s. jobless claims post and even bigger number than last week. cash trades an hour away.