>> our top stories. cases rise atrus the slowest pace in three weeks. the u.s. passes a aid package. stimulus plans not enough to secure a deal.

reportres whipsaw as a coronavirus drug failed in a trial. let's get to the market. after two weeks of strong gains in equities, we are seeing a little bit of weakness. yesterday, we saw the s&p 500 close flat. those shares moved around in that gilead report. weakness in the asian session. about 0.6es down percent. weakness in european futures as well. the 10 year treasury yield steady, the bloomberg dollar index not showing a lot of movement. the aussie and kiwi underperforming. that is reflecting the risk off appetite. the u.s. jobless came down yesterday. quite a bit of bad data in

europe and the u.k.. oil, what a wild wide -- right it has been. $17, brent up 0.5% -- 4.5%. the u.s. house of representatives has passed a $484 billion lead package. it will replenish funding for small businesses, hospitals, and virus testing. trump will sign the legislation on noon friday. this comes as u.s. cases rose at the slowest pace in three. joining us from new york on very hard earned. -- anne-marie. what are the details of the lending program for the oil industry? >> for the oil industry and we had the treasury talking about companies closed for national security.

the u.s. would want a equity stake in those. let's go for oil, it has been a wild week. the is being seen in industry, shale. steve mnuchin talking to our colleague, a lending program for oil companies. one person said it could be run by the federal reserve. might be asked to reduce production. whether or not they are asked to reduce production, we are seeing old wells being shot. what that means is on its own, the oil industry could cut 20% of production. we saw president trump wanting to lend a helping hand. the issues with supply and demand. we heard from the treasury, deemed about companies

critical to national security, u.s. once a stake. week.ave results of next they said they are poised to cut production of the dreamliner. >> one thing that also moved the market around in terms of equities yesterday, perhaps you it seeing catch up, is gilly , the best hope for a covid-19 cure reportedly flopping. bikes interesting. they came out with a report in the afternoon. it came accidentally, a post the world health organization has posted. it flopped in the first clinical trial.

reduce pathogens present in the bloodstream. wide rangefering a of views. skeptics saying the results are worst case and arial. others saying, we need to -- worst-case scenario. others saying, we have to hold off on conclusions. due to low enrollment, results are inconclusive. could beope this drug used to treat the coronavirus. it put a lot of pressure on equities. the stock ended 4%. >> thank you so much. let's get to the first word news. e.u. talks ended with no agreement on the recovery package. angela merkel pledged to back a stimulus plan. it comes as christine lagarde risks the block could do to little too late.

the euro area economy could shrink as much as 15%. in italy, the number of coronavirus recoveries has overtaken new infections for the first time. the news coming seven weeks into a nationwide lockdown. are -- there is a plan for gradual easing of containment measures. planningk., they are to ramp up testing. after weeks of criticism the government is falling behind. the telegraph is reporting boris johnson plans to returnafter to downing street as early as monday. president trump casting doubts on reports kim jong-un was in critical condition following surgery. monday, u.s. officials said he had been critical. south korea says he is

conducting normal activity. coming up, how the world bank is recover fromnies the coronavirus. this is bloomberg.

this is bloomberg daybreak: europe. we made it to friday. let's get a look at the risk radar. read on the screen and asia. the s&p 500. in futures point to a lower open. the 10 year yield slipping. dollar-yen, we are seeing

commodity currencies better performing. oil steady and higher. what is happened in asia, china has cut another policy rate. they rolled over some of the targeted rates. by the pbocused since last year to channel liquidity. while avoiding a flood of money. it is the latest in a string of ensuringaimed at liquidity. bank of japan policymakers will discuss allowing unlimited government bond purchases next week. it would replace their current target as officials come under pressure to shield their economy from the coronavirus. joining us is a senior multi-asset strategist. global equities heading for a weekly loss. is the mindset among investors

after two weeks of gains changing at all? are we seeing more fragility come through? where there is perhaps not as much conviction policy support can make up for bad economic data? nejra. morning, i think that is a really good point. on one hand, for policy support, absolutely critical. policymakers.aud policythink about the support enacted in the financial crisis, 2007, 2008, it took about two years to implement less policy support. is politically fraught.

but if they are actively seeking where they need money the most. it takes a bit of time. that is incredibly important for the markets. need policyy support. need to see some better news. on the medical front. weeks, if wele of think about infection rate, things like that, yesterday was a big setback with the gilead trial. why marketsntially are reacting today. policy support. i think it is an extremely important.

>> how important our earnings? it might seem like a silly question but we are speaking to ceos where they are saying point blank they cannot give any guidance. everybody is saying the first quarter is completely meaningless. how much is the market moving in earnings at the moment? >> i agree 100%. i have been in your program a couple of weeks ago. we discussed earnings. probably more important than any we have seen in recent history. numbers are going to be horrific. we are seeing huge disappointments. the buyback. absolutely.

that is probably not a surprise to anyone. what is quite disappointing is we are not going to get any guidance. there is uncertainty about businesses. they really need to forecast the business of the customers. very long supply chain. have a very good clarity. this earnings season less informative. mindsets changed at all since we spoke three weeks ago in terms of attitude toward risk? no, not very much.

our measure is extremely elevated. it is pretty much the same level. market not seen concentration risk go away. the market is fragile. movement upity of or down is high. investors are quite cautious about what they do. slight probably see a improvement in the overall risk sentiment. higher prices for the next couple of weeks, that always helps. what we are beginning to see , that isres data definitely there.

but i would say it is very cautiously optimistic. >> the markets are becoming insensitive to data releases. we will monitor whether that continues. let's get the bloomberg business flash. to cut out the dreamliner i about half. insisting painful measures will be needed. last month, he warned of a new reality with a much smaller jetline market. risks running low on cash. the oilan airline says route has deepened distress. looking at carrier aid from its home country of germany. four-yearoring its sales forecast. jumpeduarter revenues

23%. while it gave a optimistic target, outlook fell short of sentiments. let's get to some numbers. first quarter organic revenue, up 4.3%. 2020e maintaining guidance. wet is interesting given have seen companies withdraw guidance. it is too early to assess the full impact of covid-19. slightly softer than the estimate, 21 point 09. world bank president david malpass says the institution is focused on helping nations recover in the post covid world. take a listen. >> the first order was to set up

health care programs. get 100 countries that have arrangements and provide things like personal protective equipment. that has been good. the next step is to help countries get ready for a recovery when it happens. specifically working from a focus they need to have more transparency in their debt. they need to work on the fuel subsidies. it is a prices down, lot less critical to have the government keep subsidizing gasoline. can workomething they on. and then social protection. a safety net for the poor. what we are trying to do is get cash to people, actual cash to people rather than funneling it only to government entities.

the medical professionals we have spoken to make it very the third world countries, the world bank countries, are really fragile. their medicaln infrastructure. the world bank has to provide leadership. what is your action plan to approve their ability to respond? -- improve their ability to respond? >> it is a deep recession. with the advanced countries shut down, the poor countries do not have markets, they do not have remittances. they have been used to getting money from people sending money back home. we are trying to strengthen the health care systems themselves. in eachdifferent country. some countries need more

hospital beds. some need more equipment. 100 programs in just a month is a very impressive -- people --ked hard both in countries the world bank has offices in a lot of countries that have to connect, often by videoconference to get the list of things that were needed in the country. that is all going on. we are trying to do bulk purchasing and advanced purchasing to help troops of countries at the same time. beginning,ned at the we had two presidents of the world bank. and coloradohysics college. we have a president some would say is anti-science.

he has recently gone after the world health organization. thent you to speak to institutional integrity of the world bank. speak to americans who would suggest the integrity of the world bank is not there to distribute the money. you spend the money, the millions and billions of dollars over the coming months? a hard question. it is valid to ask. it is valid to ask the world bank to defend that. the governments structures are pretty strong. as countries ask for a loan or a bank makes both loans and grants, we can look at the system the country is proposing to use. my sense is there is very good integrity of the flow of money

from the world bank. so many international organizations around the world, it is hard to generalize. world and president david malpass. no deal on ad with recovery package. as christine lagarde written -- says the block risks doing too little too late.

is bloomberg daybreak: europe. inching closer to a recovery plan on thursday. that is after angela merkel pledged to back a huge stimulus

package. friends and spain demand reconstruction funded. meanwhile, christine lagarde has warned of doing too little too late as the euro area economies may shrink this year. the central bank expected to increase support for the economy. one in four economists say the ecb could boost emergency bond buying. we will get more impact with the -- at 9:30 a.m. london time. earlier, we were mentioning the fact you think markets are getting increasingly insensitive to market data. the markets still rally.

we still have an impact when it comes to eu leaders. do expect the ecb to step up next week and increase bond buying? seen in europe is unfortunately the coordinated action from the european commission. what has supported european economists is individual actions by governments. with the help of the ecb. dayecb announced the other they are going to accept collateral. it is quite important. it shows determination of central banks to support government. supportat it takes to us. we would not be surprised to see

more decisive action from that front. >> in that case, would that encourage you to become more positive in european equities? or would you prefer, for example, to be buying high-yield debt? to theuld probably go side of that. with european stocks, there is a reason we do not like european stocks. they were in a kind of precrisis situation even before coronavirus. we had endless conversations about is you are recession? we do worry about european -- it is our least favorite region. >> ok.

lots more in the markets, next. this is bloomberg. ♪

morning. cases rise atus the slowest pace in three weeks. this as steven mnuchin ones equity in return for eight. wants equity in return for aid. whipsaw as aares

covid-19 drugs a failed in a trial. the company says the report does not fairly represent the results. it is not looking like such a happy week for equities. have numbers coming through. etst quarter, business coming in at 1.63 euros. what we are looking for with every company is the guidance. it is maintaining its growth forecast. withdrawing guidance altogether at this point. first quarter revenue comes in a

little bit higher. santa fee hass gotten a sales burst because the lockdown has fueled stocking up. a short-lived boom for the covid-19 pandemic. we are seeing a little bit of red on the screen. whipsaw in and equities yesterday. treasury yield, hovering around 60 basis points. in terms of fx markets, underperformance in the aussie and the kiwi. overall, the dollar is stronger. a fifth day in a row. oil as well, what a wild week it has been.

gold putting back ever so slightly. leaders have inched closer to a compromise deal. pledgeder angela merkel to back a huge stimulus package. joining us now is maria day. between euns leaders. some up what happened and why we saw the european market rally yesterday. there was nothing on paper. that is the way it went. we did not get any statistics on the amount or structure of the stimulus package. saying this is going to require huge economic responses. of euros, not just billions. are seeing the debate.

there was a much more constructive tone and attitude. everyone agrees this is going to take a lot of money. it is a question of how should the help be provided? should we do it in transfers? countries would like to see transfers to keep the ratio of more stable. where --estion becomes we have a meeting next week. saying ecbmeeting could be the back to sharing the debt burden for europe. they could hold national debt for decades. today, bloomberg has done a survey of economists talking about the fact we could see an

increase in the bond buying program. how likely is that? bank isuropean central taking a quicker, more aggressive action to calm down markets. they did point out we are big economic contraction, perhaps 15%. ecb is -- they are going to have to issue a lot of debt and a short amount of time. pcp andrun out of woodley you signal you are willing to buy more? somewhere in the summer. some were willing to step it up. >> even with those

disagreements, in terms of leaders, we sell bcp yields dropped 10 basis points. that cicilline about the expectations around the ecb. -- says something about the expectations around the ecb. the u.s. house passed a mere $500 billion coronavirus aid plan. the chamber entered following strict health precautions. trump willay donald sign the legislation today. u.s. secretary treasury mnuchin will have to offer shares to the government. the requirements are similar to those for airlines seeking payroll assistance. gilead shares tumbling after a chinese trial of a drug for covid appeared to show it is a

failure. but a scientist working on the trail says it does not accurately represent the results. and the u.k., matt hancock vowing to ramp up testing. after weeks of criticism the government is falling behind. test appointments will be available. the telegraph reporting worse johnson plans to return to downing street as early as monday. this is bloomberg. as the debate over reopening the u.s. economy rages, we get the thoughts of gary cohn, former director of the national economic council. take a listen. u-shapedk it is a recovery. i am trying to foreshadow or

think about a u-shaped recovery. businesses orn certain events will not come back and that u-shaped recovery for some time. are going to we basketball games or baseball games anytime soon. do i think baseball and basketball might play without fans in a controlled atmosphere? i do. i think we would enjoy having that entertainment. that is a different type of environment. compared to where you have 20,000 people or 50,000 people. there is a roadmap for reopening the economy. it relies heavily on logistics and compliance. do you think it is a viable approach? >> i do. i have talked to scott quite a bit during this. i think he has been very practical and reasonable.

trying to lay out a way we can get back into a more normalized economy as soon reasonably possible. i think what he has laid out is quite reasonable. >> you talk about your trepidation, the gut instinct you have. what do you think those challenges are? ofthere are a large amount people getting government benefits. they may be in excess of what they will learn when they go back to work. if you are home doing nothing, earning more money than if you went back to work, this hard to get those people back to work. i have heard of fast food restaurants doing curbside pickup. help-wanted signs in

retail establishments doing curbside and they cannot get people to reengage. we want people to reengage and not rely on government handouts. that is number one for me. number two, we are going to need a national feedback loop through testing. everyone does talk about testing. if we have a seven, when the virus reappears, we are going to need to slow down the economy in certain areas. it will not appear everywhere at once. the more granular data we have, the easier it is going to be to reopen that economy in certain places while allowing the places without the virus to stay open. their gradualn increase of economic activity. >> let's turn to financial markets.

what do you think the most important lessons to be taken from the panic selling, massive and speed at which prices collapse? >> the financial markets around the world have held up quite well. we have had good liquidity. getyone who has wanted to in and out of financial markets has been able to do that. the unintended consequences of what we are seeing. thisen we write about time, we will talk about this, the banks have been in good position. banks have had to provide more liquidity than any other crisis in the past. that was gary cohn.

let's check on the events you should be looking out for. businesshe german conference. u.k. opposing extending the deadline. set to reviewp italy's credit rating. a --n mnuchin and ways weigjs a lending program for u.s. oil companies. this is bloomberg. ♪

of things are going to change.

accelerate the use of online banking and acceleration. we are goingvinced populationreduce densities. >> companies will have much more tendency to go to virtual seasons. this may be something good for banks. see the importance of diagnostics. continuing to invest. recent debates have shown how important that is. companiesasked whether they could switch to work from home in a week, they would have said, and possible.

>> those are some of the top exact is we spoke to about how they think is this will change. the u.s. house of representatives has passed a $484 billion aid package. house said trump would sign the legislation at noon on friday. this is the fourth coronavirus measures since early march. steven mnuchin says he is considering creating a government lending program for u.s. will companies looking for aid. below zero for the first time earlier this week. we have a number of super majors reporting. the oil priceto

its self, the fact he is thinking about a lending program for struggling oil companies, he has pointed out investment grade drillers should look to the fed. does that give you comfort if we declines, it might not feed through to the rest of the equity market because of concerns about defaults the oil sector? yes, to some degree. we are already beginning to see silly like that is the oil and energy sector pickup from the rest of the market. it is by far the worst performer. companies are really struggling. really poisoned the rest of the market. one thing we are focusing on right now is the wide dispersion

between various sectors. the gap i came across, between the best performing sector and the worst performing 50%.r, drop in the equity index. they are focused on sectors that can do better and sectors that can do worse. it has allowed them to perform quite a lot better. >> that dispersion you just outlined, that is a fascinating stat. you have said stay away from energy companies. you are long health care and i.t.. i know you like growth versus

value as well. that is a strategy you have been implementing for a wild. in terms of the will price, people are thinking about the fact we could see production cuts. if the demand side proves challenging, what implication does that have for your overall strategy >? will prices, we see affecting current prices. see really two distraint trends. prices.ng fuel on the other side, we are seeing of supply of kind chain problems. increases in stockpiling. food prices going up.

prices of electronics and furnishings, edging higher. problems with delivering certain goods. we see those dynamics. some goods are getting more expensive. problems with delivering certain goods. that is a dominant force in headline inflation. we are seeing some deflationary pressure. >> some headlines. expecting a gradual recovery of oil consumption in the second half. briefly on the border market as of oilwell, steven mnuchin has askd for equity stakes in exchange

for $17 billion of aid. see policymakers, whether that is the fed, governments, supporting equity markets, is that positive for you as an equity investor? >> in the short term, yes it is very positive. central banks, governments, that is very positive. longer-term, it is interesting to see whether it is like long-term investment. we saw u.s. governments supporting banks during the financial crisis. short-term, definitely positive. amani -- maria

veitmane. next,l cover that bloomberg. ♪

this is "bloomberg daybreak: europe." investor who has consistently topped peers says the asset class has never looked so promising. his emerging markets equity fund has trounced 96% of competitors. of 1200 developing nations stocks. our guest is still with us.

given the fact that when we look at stimulus, all stimulus is not equal. it seems like developed markets are ahead at the moment in terms of pandemic stimulus. holdis really the time to high conviction on emerging entities? are three reasons we like emerging markets. been -- investors staying away. there are opportunities. that, emerging markets are dominated by asian markets. in the next stage, fighting this crisis. providing liquidity.

supporting economists. giving people and companies back.to come reopening the economy, consumer part. they are trying to restore it, getting workers back to work. in the developed market, it is still too early. sense, emerging markets are ahead of developed markets. one of the dominant sectors is -- >> we will have to leave it there. 90% of the portfolio is in for asian tech firms.

global equities heading for a weekly loss. this is bloomberg. ♪ awesome internet.

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♪ anna: good morning. "bloomberg markets: european open." i'm anna edwards live in london. the cash trade is just under an hour away. eurou agrees a 500 billion short-term deal on the economy but fails to make any progress on long-term plans as leaders clash. upping mistakes --