♪ nejra: good morning from london. i am a rhgh with manus cranny life from dubai. u.k. prime minister boris johnson is moved to intensive care for his coronavirus treatment. foreign secretary dominic raab will deputize. asian stocks moved to their first back-to-back gain in three weeks. oil pushes higher ahead of thursday.

euro area finance ministers look for agreement on a corrective response to the crisis in a crucial call today. shinzo abe says he wants cash handouts as quickly as possible. ."lcome to "daybreak: europe a powerful rally in the u.s. session yesterday. investors seem to be looking for the virus peak. cameron crise says, if you are looking for the bottom, it may not come for more than a year. manus: diamond warns that a recession could be similar to 2008. a trillion dollar stimulus from japan. the ministry of singapore going with liquidity requirements. good morning. nejra: if we wonder whether the rally will continue into the

u.s. session, u.s. futures lower earlier. on these, seeing green screen and asia and also in terms of european futures. the big move yesterday, taking the futures above the moving average and pushing through the end of march high. do we get to a 70 handle? we are at 69 right now. oil resuming its rally after we secretary the energy had a productive discussion over the phone with his saudi counterpart. in the u.k., boris johnson is in critical care. his coronavirus infection worsened. britain enters a critical period. scientists predict the outbreak will peak in the next seven to 10 days. iseign minister dominic raab

temporarily running the government. >> the government's business will continue and the prime minister is in safe hands with a brilliant team at the hospital. the government will continue with the prime minister's direction defeat coronavirus and pull the country through this challenge. nejra: joining us with more is bloombergs executive editor for international government. thank you for joining us. whilst we know about the state of the prime minister's health? >> like you said, he has been in hospital since sunday. he has had a persistently high temperature and cough. he had been battling the virus for at least 10 days now. athad been isolating at home 10 downing street. attending meetings virtually.

with the selfie video he put out, he was clearly unwell. he was taken to the unit as a precaution in case he needs ventilation. he is on oxygen. right now, he is not on the ventilator. there has been a pattern for patients that around the 7-10 day mark, they take a turn for the worse. clearly he is unwell but they say right now this is a precautionary measure. manus: the gentleman now running the country is dominic raab. he is now in charge. what do we know of raab? what kind of person izzy, what is his background, and what can we expect? rosalind: he is known for tussling with theresa may over frexit. he is a lawyer by trade. theas a candidate for

,onservative party leadership who fell behind boris johnson and supported him. role coming into this temporarily at a time of real crisis in the u.k. measures taken by the u.k. not to test people. he is coming in and having to chair daily meetings at a time when scientists are saying it could peak still in 7-10 days from now. there are shortages of workers, vital medical kits, and real questions about how the u.k. manages its way through the rest of this. the prime minister's hospitalization coming with the u.k. facing serious questions ppe forcing covid-19,

doctors, and obviously the norm is price for lockdown. u.k.'sis mean for the fight against the virus? rosalind: the government said that we would initially be on a three-week lockdown and that would be coming to a close later this week. of course, we have seen some initial warnings that it might be suspended. the economic managers within the government, the health managers within the government, there is at the same time the imperative to limit the damage to the economy, individual workers. you need to balance that against the need to keep people safe and

avoid a re-spike in infections. simplyof that, raab asked keep things together at daily briefings, meeting with health officials and scientists. nejra: there have also been questions of whether there could be a government of national unity with labor, which of course also has a new leader in keir starmer. thank you for joining us. let's get to the first word news. the u.s. is easing restrictions on exports of masks and other protective equipment just days after it instituted the measures. after a public spat with company it president trump said would continue to export some masks. china is reporting a new

coronavirus deaths. it adds to signs that the coronavirus may be easing. in new york, there is indication that the number of new deaths is hitting a plateau. the biggest producers are moving toward a truce in the price war and may cut out what. he held a productive discussion with his saudi counterpart ahead of a virtual meeting with the alliance scheduled for thursday. the european union is facing the biggest challenge. the chancellor pushed back berlin criticisms that lacked solidarity in projecting calls for debt. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. manus: coming up, virus optimism. global equities in the green.

we have some optimism at the outbreak may be waning in some of the core hotspots. that is next on bloomberg. ♪

it is "daybreak: europe." nejra cehic alongside me in london. first back to back gains on asian equities in a couple of weeks. yesterday in the cash market. is this a rally built on containment or on formal? -- or on fomo? we can ask our guest. roll over, have a look at the

bonds. of have a trillion dollars stimulus coming to bear in japan to try to fight the ensuing recession. the dollar is rolling over on a global basis. to that end, we have construct of discussions with the u.s. and saudi's with regards to oil. manus: --nejra: asian stocks are up, heading for their first back-to-back gain in two weeks. optimism grows that the outbreak may be waning in some key epicenters. the outbreak drove the benchmarks iia three-week i. further stimulus is needed. house speaker nancy pelosi told democrats this on a conference call. the next stimulus bill will be a trillion dollars and will repented funds -- will replenish

funds. it should include payments directly to individuals, food stamps, and for the payroll protection plan divides loans to small businesses. manus: on the others of the coin, the ceo of jp morgan, jamie dimon, says he sees a pandemic leading to economic downturn. he sees a found recession at a minimum and that jp morgan is not immune to the threat of this kind of stress. a baddimon warning ofession, echoes of a crisis 2008 ahead. you see a market rally by 7%. do you think jamie dimon's warning is prescient? >> i think what we are looking

term, assete short prices on the back of some underlying optimism. fresher fiscal injection from the u.s. newlatest rumors is that a packet will be put into place. that is really buoying the equity markets. line,ality is, down the as we face the consequences of this lockdown, companies will try toessure as they regain market share and operation over the next few months. that will be a challenge to smaller firms that do not have access to credit. what jamie dimon is looking at, that it could have .egative effect on the economy

nejra: in that case, when might we expect the market to bottom? our very own cameron crise says it could happen more than a year from now. he used measures like the speed of the decline, the price of equity markets, and also ism manufacturing and the unemployment rate. was 74the fastest trading days from peter to trough. this time, we have seen it happen in 24 so far. or dohe bottom come soon we have to wait for a year? saed: what we are seeing right now is something that is unprecedented in our times. is not are seeing now something which is financially driven but something that is

basically driven by government lockdowns and precautionary measures. , trying too this pick a bottom here is very risky. i think we have to see to what affectthe lockdown will global liquidity. it is looking more along the lines of 20%, 30% drop. then, i think we are looking for a bit more, asset he down to 1700. a further drop in supply and equity markets as we essentially try to reengage. morning happen tomorrow if a vaccine for treatment shows up. it all hinges on us finding some kind of way to end the lockdown.

if it and's tomorrow morning or a month from now, the bottom may be in place. the system will see unprecedented rally. uss is all contingent on trying to find a way out of this lockdown. you are seeing governments try to find a more manageable way. we understand, roland lockdowns, a w-shaped recovery. a myriad of outcomes. but if you are looking at and equity market that has a risk, our guests says we have seen the low in bond yields, but from what you have just sent, i am not so convinced that would be your take. have we seen below, or should we be buying more bonds as a protective ballast?

saed: at this stage, -- the present fiscal stimulus. ifsaw rba, there was a move things improve. fed and rest of europe to actually remove stimulus if that was the case. i think the underlying bond buyers, at least this year. oncould see further pressure the downside in bonds in the medium-term as we continue to see results. you could wait a bit, a bit of a correction. bank of america says the dollar is the best barometer to gauge the tolan markets. to that end, how would you trade currencies right now around the

dollar? saed: we saw a significant rally -- i on credit contraction think going forward over the next few weeks, we will see a case where further dollar demand will take place. but you essentially have to look at this situation. europe is actually in a poorer situation than the u.s.. i will be looking for any balances, looking to potentially sell sterling on any balances. i will be looking for further deterioration in the demand in -- i don'tket, and think consumers are going to

come out of the gates here and start spending. manus: hold some of those thoughts. we are packing a lot in there. we will get back to some of those tough topics with you. saed abukarsh, senior executive officer at ark capital, stays with us. better than for the quarter revives hopes that a surge in internet usage will help offset a drop off in smartphone demand. and the company will break out the numbers by division later this month. --en is said to be working boeing temporarily shutting its last commercial jet factory still in operation.

that, as the airlines have parked fleets as the demand for long-haul travel literally evaporates. will announce a new date for when it will start reopening plants in the u.s. and canada. it will start on may 4, effectively extending the shut down by two weeks. rivals general motors and ford have refrained. that is your business flash this morning. nejra: we will be keeping across that story and we will bring you any updates on the right and theer's health as -- on prime minister's health as soon as we have them. europeanres, generally futures quite positive. lagging euro stocks. course, boris johnson

moves to intensive care. he is not on a ventilator, as we understand. theng up, no signs of pandemic abating. markets are waiting for the unified european response. what does that look like? what can the eu finance ministers call later today deliver in terms of unity? this is bloomberg. ♪

nejra: this is "daybreak: europe ." france's proposal for a fund to boost the european economy after the coronavirus crisis could be 3% of the bloc's gross domestic product.

eu finance ministers or do to a anderence call at t :00 -- 2:00 p.m. london time today. new disagreements about whether to deploy the bailout fund or to push for so-called corona bonds. abukarsh.aed you were saying earlier that you would selling any rallies in the euro. what is your outlook for the movement and fixing for europe when you look at thousand -- look at sovereign bonds versus credit? saed: we are thinking that the bones could get further into negative territory. the problem right now for to fundthe inability the fiscal stimulus and europe. what you are seeing right now,

the old question with regards to the maastricht treaty. thee days, violations of guidelines. at the same time, the idea for corona bonds is being pushed away by the german side. we are definitely seeing debate within europe about what is the best method to actually access liquidity. the problem is that this, as usual, takes time, and the german side does not want to actively participate in a group debt situation. i think this debate carries forward. i think we will see some embers of hope this week or next week. compared to the u.s. or other to act, europe tends much lower. we saw the pandemic fund,

nearly 30 billion euros in paper. our guest yesterday suggested that the ec should go -- the capshould go for spread targeting. let the nation test the ecb. that was from m and g. what do you make of that proposition? saed: what you are seeing now, it is similar to what the japanese are doing. is not soying problem much the rate itself but the access to funds. ability for the european government to produce --

manus: we will have to pick up the yield cap conversation in just a moment. here,n the markets right from the hotel industry ceo. ♪

manus: good morning from bloomberg middle east headquarters in dubai. new top stories this morning. prime minister boris johnson is moved to intensive care as his condition worsens. dominic raab will deputize for him. asian stocks had for their first back-to-back gain in two weeks. hopestocks surged as

surge. the euro area finance ministers look for agreement. says he, shinzo abe wants cash handouts. 7:30 in paris. the three things we need to deal stimulusrillion dollar in japan. so they areold, saying things are beginning to function a little bit that her. the whopping 7% rally yesterday in the u.s. nejra: that rally taking the s&p 500 above its 200 week moving average. you start to ask yourself whether that is just a blip and whether we have further to go before we hit the bottom. manus: and that depends on

living in a life after lockdown. equity futures are retracing. a belter of a day yesterday in the cash market. a rally that was built on containment. jamie dimon warns of a bad recession. jp morgan versus guggenheim meinhard saying the s&p could fall by 14%. seven look at the rest of the market stories. it is about stimulus. a trillion dollars of stimulus coming to bear. rallies. a constructive call with the saudis, 9 million barrels according to my guest. cable more to do with dollar weakness than the severity of bad news about oris johnson. he is in intensive care.

nejra: let's pick up on that. boris johnson in intensive care. coronavirusnister's infection worsened. he remains conscious. scientists predict the outbreak will peak in the next seven to 10 days. foreign secretary dominic raab is temporarily running the government. >> the government's business will continue. the prime minister is in safe hands. the focus of the government will continue to be making sure the prime minister's government, all the plans to make sure that we can defeat coronavirus will be taken forward. well investor optimism of the outbreak drove the benchmarks to a three week high, further stimulus is needed. nancy pelosi told democrats on a private conference call.

the next stimulus bill will be at least $1 trillion and will replenish funds for programs signed off last month. plus he said that extra funding should include payments to individuals, food stamps, and protection scam. let's have a look at one of the hardest hit industry groups in the world. quarters of three its staff. 20,000 people due to the coronavirus pandemic. the tourism industry has been heavily hit the outbreak. the company has enough cash to withstand the crisis. sebastian, thank you for joining us. present here very and around the world. 5000 hotels. those numbers are stunning in yous of the number of jobs

have to cut. thatwe go to reopen, with number of layoffs, do you expect to reemploy that number or will it be a scaled process? run me through the reality of that number and what will happen if you attempt to reopen. intend to rehire every one of them we had to let go, furlough, temporary leave over 100,000 employees. i don't know how long this crisis is going to last. but i know you will see light at the end of the tunnel. i don't know if we will be able to come back as strong as before. closed, athree hotels network of 5000. every one of them, i intend to

rehire every employee. i just hope everyone will come back traveling by early this summer. i could be dead wrong. tom fighting for accor survive, and surely it will, and for the industry to come back. nejra: great to speak to you this morning. on the question that on the hotel industry, the travel pointed to early summer. seeing onwhat are you that front that gives you hope of a comeback by summer? sebastien: the only hope of a comeback we have, and it could be tiny. of all the reservations we have for july and august, less than

10% have been canceled. it does not mean people will show up. i am not naive. fetching 25, maybe 30%, but i can tell you i will do everything to make sure my hotel is open and ready to welcome everyone of you. manus: we wish you well with that aspiration. i think that is one of the strongest messages i have heard from a ceo on the network. china, we understand, is returning to some form of working life normalcy. as of 2, 3 weeks ago, we have 400 hotels in china.

when he 5000 employees. ago, 85% of that workforce was at home. as of last night, the same number are back in the hotel and of the hotels are open. the business is back, slowly back, including food and beverage by the way, in our hotels. the second largest operator in china, over 3000 hotels, i am on the board of this company. 60% occupancy. visitors, or local chinese, but this is a good sign of indication that in a country that has been badly hit, three

weeks, five weeks after the fact, activity is back in some spaces in china for sure. nejra: one thing that you have pointed to previously is your relatively strong balance sheet relative to peers. i wonder, as we look past the crisis we are in right now as we have been doing, could your relatively strong balance sheet create any opportunities for consolidation postcrisis? sebastien: one thing first. thanks to this, i can sleep at night. hours,sy all day, 14 trying to look after all of my employees being furloughed, making sure they have medical , if i can assist them. having 25 billion euros of cash sheet permitsance

me to weather the storm and basically handily long crisis. i hope it will be much shorter. we have the liquidity to basically not be run. manus: -- do not be runover. manus: have you tapped any credit lines? tapis caused you to have to credit lines on a scale that is available to you? sebastien: we have 1.2 billion euros credit line that we have not drawn. peers, wese, like my have been getting release from the financial holders, trying to .et relief on the 2020 covenant

that has been obtained. if we were to draw on the line, we have the ability to do it. nejra: in previous interviews, you have said as well that you don't think you will need french government help. but is that something you would rule out if things took a turn for the worse? sebastien: in today's circumstances, i don't roll out -- i don't rule out anything. measures get as much as you can from your local government heads, agencies, you make the tough decisions on trying to cut costs. ton, you basically make sure prepare for the rebound.

it will happen. the only thing we don't know is when. industry inhe hotel am medium to long-term, i not preparing for the rebound as of yet, but i am thinking about it. in the meantime, be cautious, be prudent, be humble, and know that what you are facing we have not seen before. we have a brilliant team, we have the time, and we have the network. thank you so much. manus: can i ask you -- sebastian bazin, ceo of accor, great to catch up with you today and hear a note of optimism. some breaking lines that italy

may start the gradual end of the lockdown on may 4. that is the latest that we have got from italy. 9 thatactually on march the national quarantine was imposed on italy. prime minister boris johnson is in intensive care. his coronavirus infection worsen when he was hospitalized over the weekend. foreign dominic rob is temporarily taking over. scientists are expecting the peak of the outbreak to be in the next seven to 10 days. >> the government's business will continue. the prime minister is in great hands. the focus on the government will continue to be making sure that we can defeat coronavirus and hold the country through this challenge. the next stimulus bill

from congress will be worth at least a trillion dollars. that is according to nancy pelosi on a private conference call. she said that extra funding should include payments to individuals, food stamps. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. oil continuesup, to gain. signs that the world's biggest producers are moving toward a deal. we discuss the prospects for an agreement. this is bloomberg. ♪

this is "daybreak: europe

." the risk rally is gaining steam. green on the screen and asia. s&p futures in the green. they were in the red earlier. the yield back above a 70 handle. the dollar rolling over. gain with a little bit of optimism. manus: so the markets are moving with philosophy, a trillion dollars worth of stimulus coming to bear in japan. movedminister shinzo abe to announce a state of emergency in seven prefectures. he also announced a record billion,package, $988 to support struggling households and businesses.

oil, producers moving toward a deal. we understand that the u.s. energy secretary has a productive discussion over the phone. says a. government virtual meeting of producers is set for wednesday and a meeting of energy minister's for friday. the oil market, a rabbit rally in the space of four days. what needs to be delivered to sustain that rally? i think we are priced in closer to the number, closer to 10-15,000,000,000. we have seen pricing of oil prices. ,lobal consumption of oil despite china and other states building up strategic reserves, is going to have to wait a little bit until the local

economy is back online. if we do of the gap have a positive outcome. muchorld does not need as oil as it has in the supply chain at the moment. we would look to sell any spikes in oil in the mid 30's, if we see it. nejra: the sort of downward trajectory for oil is one of the things leading a lot of people to look toward disinflationary and deflationary. a real risk according to the boj policy chief. ino concerns about recession japan. the manufacturing industry as well. japan, whatoking at

implication does that have of global markets? saed: i think what we are seeing is everyone is throwing the kitchen sink when the virus starts to impact the economy. we saw it in europe, in the u.s., in japan. this package will be key in assisting individuals. thege would change inflation outlook because consumer behavior in japan is very different than consumer behavior and the rest of the world. , assetconomy right now bubbles blowing up. everyone is trying to keep their equity market assets. you don't want the situation of

a pandemic and collapse. seeing -- as well as trying to keep the lockdown in place. japan is doing their best to follow the same lead as the u.s. and europe. saed, we are struggling to hear you but let's give it one last go. the u.s. economy and the nikkei, buying in japan. extent, you want to add any asian equity and specifically japanese to your portfolio? -- saed: i was long asian equities. i have been looking for any value. over the next few months. -- now, of s&p consolidation. manus: we are going to have to

leave it there. sound issues.some thank you, saed abukarsh, senior executive at ark capital. it is a question of a rally in oil. should that help us to deflect? nejra: coming up, the u.k. prime minister is in intensive care. we will get the latest on his condition and some other key developments. this is bloomberg. ♪

nejra: this is "daybreak: europe ." withnejra cehic in london manus cranny in dubai.

u.k. prime minister boris has been moved to intensive care as his condition worsens. foreign secretary dominic rob is standing and for the prime minister. annmarie hordern is standing by in new york. give us what we know about the prime minister's condition. >> worrisome news out of the united kingdom. boris johnson is at st. thomas hospital, just across from parliament, south of the river. he was admitted over the weekend but now he is in an intensive care unit. he is receiving breathing treatments on oxygen but he is not on a ventilator and he remains conscious. thatcritical situation they are going into. over the next 5-10 days, we could see a potential uptick in these cases. about 5000 people have died.

they have to manage these situations. a lot that means getting the protective medical equipment is -- equipment as well as more workers. there has been an outpouring of support. and emmanuel macron president trump. the united states. manus: what are the latest developments for president trump and the export restrictions? the alpha of sentiment this morning. >> everyone loves that word, plateau. similar positive news out of europe, spain, germany, italy. governor cuomo talking about a potential plateau in new york. he did warn people to remain socially distant in place. president trump striking this deal with 3m to get more

protective masks. manus: we will still be social distancing for quite a while. that is your addition of "daybreak: europe." ♪

anna: welcome to "bloomberg markets the european open." markets say ite is risk on again. futures in europe and the u.s. points against. is less than an hour away. forrest n