>> good morning from london, this is nejra cehic and here are today's top stories. u.s. coronavirus cases records the lowest number in april. bill gates says a vaccine could take as long as nine months. u.s. stocks and their best month since 1989. apple gets its forecast for the

first time in years. and the fed -- the ecb cuts funding costs. boris johnson pledges a lockdown exit plan. welcome to daybreak era. as we head into may, how about these markets? 1987.st month since u.s. equities. u.s. jobless claims yesterday, the you want to focus on the unemployed or the fact that the claims have been decelerating for four weeks. we saw a red on the screen yesterday. more than 1%.own a lot of markets closed. in asia, japan is open. read on the screen for japan. many are closed but ftse futures points to a down day. risk off across the markets. dollar strength coming through

on the bloomberg dollar index. oil is an outlier in terms of the risk picture heading for a monthly gain. coronavirus,o the u.s. coronavirus cases recorded the slowest daily increase for the month of april. resident donald trump will theel to camp david for first time leaving the white house compound for more than a month. the president is preparing to resume travel and reopen the economy. york isus from new annmarie hordern. a potential glimmer of hope from the u.s. walk us through the latest data. >> a potential in the sense of what we are seeing in the data looks like a flattening of the curve. and you look at the average for the country. average of cases has grown by 1.2% from the day before. that is down from what we saw last week, an average of 3%. -- when always a "but" you look at some of the states,

things are getting worse including new jersey, the neighbor of new york, reporting 460 new deaths. texas also saw its highest death toll and on the west coast in california, they are seeing a pickup in cases. the biggest one-day jump of new infections. on the average, things seem to be getting better but there are certain spots where things are getting worse. ra: and also, a lot of excitement about gilead's coronavirus treatment. how close are we to fda approval? -- a lot ofup excitement about that. they are working at lightning speed to go through the day debt said he expects something relatively soon. gilead will be sending -- spending $1 billion on this.

they are going to be donating many doses of this drug. analysts and investors are scrambling looking at what this means for the company. what does this mean in terms of revenue. it is a controversial question according to one. the ceo said it is a point well taken but we will be very thoughtful about providing this drug to patients who need it while making sure this is sustainable to the company and shareholders. he also said it was too premature to discuss this and there were a lot of moving parts. : gilead is caught between making a profit and treating the world and when you have a lot of people saying out of sectors in terms of equities, it is very much health care and tech that will remain robust through the crisis. you look at what we heard from amazon and apple and maybe you put a question mark over that.

coronavirus is the main factor here. is all about what the pandemic means to the bottom line. these are two of america's biggest companies that were supposed -- that the coronavirus epidemic and the trends it sparked would favor these companies. saidmazon though, they they will be spending $4 billion in this is to increase warehouse and meet capacity surging demand to protect workers. that means they could lose money and the current environment. jeff bezos said investors, take a seat. we are not spending little. we are going big. apple on the other hand added money to their buyback program. they also boost did their dividends. .- boosted their dividends they also did not provide guidance for the next quarter which spooked investors on the apple side. nejra: annmarie hordern in new

york. great work. toe sure you stay tuned bloomberg tv and you can catch our special "coronavirus, critical challenge saturday at 2:00 a.m. london time. is expandingeserve its paycheck protection facility and adding additional vendors to provide stimulus. doling out an additional $320 billion after the initial round of nearly $350 billion which was exhausted. the european central bank has moved to ease money market stress since relaxing restrictions. introducing -- to ensure sufficient liquidity. president donald trump is speculating that china may have chosen not to contain the coronavirus. the president said he has seen evidence that a lab in wuhan was the origin and it possibly got

out due to a lab mistake. u.s. intelligence officials are examining the source. that is unfounded. boris johnson is pledging a comprehensive plan to lift the lockdown. he will release details next week. suggesting people will be encouraged to wear face after restrictions are limited. the u.k. is on the downward slope. 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. coming up, 1987 highs. u.s. stocks have their best month in decades but close lower. we take a closer look at the slide next. this is bloomberg. ♪

nejra: this is bloomberg daybreak: europe. let us that a look at the risk radar. but manyking risk off markets are closed. weakness in japan. we are seeing a down date signal to buy u.s. futures. slipping.eld dollar strength. heading for its first weekly gain in a month. let us get back to equity markets because u.s. stocks ended their best month in three decades on a slightly sour note as dismal economic data and corporate results reflected the told the coronavirus has taken. the s&p 500 fell from a seven-week high as the number of jobless claims surged. more than 3.8 million americans filed for unemployment benefits sending the six week total to about 30 million. as u.s. unemployment -- as u.s.

employment continues to be savaged, the fed responded with a liquidated -- liquidity facility. alsoentral bank is widening its mainstream lending program to more borrowers as revenue and employee limit has -- 50%.sed by 15% lori joining us now is edward park. i feel that outlining the economic picture versus the stimulus has perfectly set us up actuallyu why you have moved international equities to overweight? edward: we have been monitoring this for a while and i think when we saw equity markets fall in march and to a lesser extent in february, we started seeking the gradual relative are you wish and attraction building between equities and bonds. these are one of the things

that gives you a long-term impression. we are seeing the u.s. earnings yield reach about 7.5% compared treasury, itgilts, down about 0.5%. this is an attractive time to start adding to equities. we also think that we will see a short and significant shock from affect9 but it will not long-term economic growth. as a result, we expect markets to look through the near-term quarters in terms of corporate data and look to a future which is slightly more positive and isticularly given it supercharged by a lot of u.s. fiscal and monetary policy. notes you sent before the show you said this is what markets seem to be focused

on. they are eyeing the fact that the stimulus will outlive the pandemic. i want to take you to some thoughts from gary shilling on the bloomberg this morning. he says that stock traders are in need of a history lesson and he is talking about the great depression. he says it looks like a bear market rally similar to 1930 with an additional 40% drop in stocks to come as a deep global recession stretches into 2021. he goes on to say on the subject of stimulus that the gigantic provided so far is unlikely to offset the massive disruption of the coronavirus pandemic. i would ask you why you are not skeptical about the rally we are seeing at the moment? best stock for you at -- best month for u.s. stock since 1987. edward: there is a difference in what will happen to the economy versus what will happen in the financial markets.

datedis undoubtedly poor coming out from economies at the moment be that the u.s. in terms , or europe. i would stress that when you look at the data, during the financial crisis, the most recent terrible stock market event come it took 200 days for the equity market to fall into a bear market. this time it has taken 20. lookmic data does unquestionably port. but how deep is the recession -- or how long will this contraction go on for? where we would question that would be saying -- if we do see a gradual reopening of economies , we see people getting back to work albeit it will take a little bit of time. we are more in the u-shaped

recovery camp. that, there will be a sharp contraction in economic data to mow we do think it is temporary. expectingy we are markets to be a discounting mechanism. nejra: on the earnings come is the market fully discounting the negative impact on earnings with the extreme lack of guidance we have had pretty much across the board? extremelyat is an good point. only 16% of as indy 500 so far and given full-year guidance for 2020. most people have withdrawn. a lot more difficult to try to

calculate that. when you look into the numbers that the market is reflecting come it is somewhere between 50 -- 50%-20% fall. there is an attempt to try to do that. the q1 earnings we have been seeing -- you can try to calibrate your numbers on that onlyock down was really enforced in march. a challenge for markets. but again i would say that what is happening in terms of the is probablyrters only 20% of the valuation of an equity. even if we do see earnings ridiculously hitch for the rest of the year, markets will look forward particularly with rates so low. nejra: edward park from brooks macdonald asset management, great to have you on the show today. with more than 30 million americans out of work, we spoke to the --we spoke to eugene

scalia. >> these unemployment filings are hard to say. we recognize that each of those filings as a worker and potentially a family that is on hard times now because of what we are trying to do to fight the coronavirus. we are obviously doing all we can to help the states deliver unemployment benefits to them. it does appear that the filings have crested. the number is declining. we don't know the extent to which the filings reported today that it was about 3.9 million. we don't know the extent to a backlog.reflects at the same time we are getting these filings, we are looking forward. states are beginning to reopen. and so we look at the prospect that within just weeks, some of these people that have been filing will be able to get back to work. >> the backlog is important for several reasons. a data perspective.

so we know exactly how many americans are in need of this but also for individuals to get the financial assistance they need to sustain. is there anything congress can to speed up that process? >> when of the critical wasisions of the cares act an extraordinary additional $600 a week in unemployment for americans could out of work because of the coronavirus. we have been working every day as closely as we can with the states to help get the payments out. to havees have proved very old computer systems and they were understaffed which has caused delays. we are doing all we can to help them. i have been in communication with members of congress in getting that done. we will continue to support them. is a follow-up on that plate

from a basic standpoint, congress might be able to provide technological infrastructure to help some of those states struggling to keep up. >> we have offered to put every stay in touch with something called the u.s. digital service. it is a tech group within the executive office of the president and they have been working with a number of states to help them with their computers. i spoke with one governor who had to go to latvia to find people who knew the computer system his eight had because it was that old. i think as we come out of this pandemic, there will be an occasion to consider what we should be doing differently going forward and i think that the states will want to enhance their system. >> in terms of making sure the benefits have not been extended so much that people are to work, i think that is something washington wants to see is people returning to work.

i have interviewed republicans in the past several weeks who are concerned about that. that there may be a disincentive for people returning to work. what are your thoughts? >> unemployment is an important safety net. >> especially now. was important to the president to provide an at your measure of support to americans who are really making a sacrifice for our national health. that said, unemployment is never our first choice. our first choice is that people be able to go back to work. and as we reopen, people who have been receiving unemployment should go back to work. you cannot get unemployment if comeemployer is saying -- back and please rejoin us nor can you quit a job in order to get unemployment. we will make sure that we talk to the states about focusing on that aspect and our inspector general will be looking into states' efforts to bring people back to work which is what we want. nejra: that was u.s. labor

secretary eugene scalia. that is at the bloomberg business flash. aidng is ruling out federal instead selling bonds, the largest offering this year and the company says it eliminates the need for more cash. boeing burned through the most money ever in the first quarter. it is looking to shore up finances more by cutting jobs and cutting production. the worst contraction in history according to market trackers. edges 70 5 million in the first quarter. a double-digit decline from the same time last year. both firms attribute the shortfall to the pandemic. we worked at cutting more jobs. been told a coworker and company also plans to permanently shutter its on-demand effort. there is currently one location close do to the pandemic. the gatwick harbor may be closed by british airways.

says there is no certainty -- the pilots say there is no certainty that air flight will pick up again. cutting funding costs from banks but it has refrained from boosting its bond buying program. you will hear about that next. this is bloomberg. ♪

nejra: this is bloomberg daybreak: europe. i am nejra cehic. money markets and bonds showed immediate signs of relief after the european central bank is to restrictions on long-term loans to banks.

it has also introduced bonds. president christine lagarde introduced the bond rally when she said the ecb is ready to increase efforts. uncertainties,gh growth scenarios produced by ecb staff address the euro area gdp could fall by between 5%-12% this year. depending crucially on the duration of the containment measures and the success of policies to mitigate the economic consequences for businesses and workers. nejra: that was ecb president christine lagarde. edward parks from brooks macdonald asset management is still with us. to carry on the conversation we were having earlier, i know you think that the policy accommodation we are seeing globally could turbocharge the

economic recovery and risk assets rallying to reflect this but when i look at your credit views come you have upgraded the u.k. and international investment grade, does that include the eurozone raised on what the ecb is doing or might do? edward: mainly in the u k and in the u.s. we still have concerns -- we are seeing a huge amount of policy response from the ecb but we still effectively don't think it is delivering what markets are looking for. there will still be economic pressure on a lot of the companies which are domiciled in the eurozone. our upgrade in terms of credit, we focused this on the investment grade market. the federal reserve has done a huge amount but what it has really done is support high-yield. -- there hasot been a lot of talk about fallen

angels. the fed can only by about 2% of that compared to them being able to buy -- percent of investment grade. nejra: it makes sense. recovery does come, do you expect the markets to continue to favor the dollar? edward: we do. the key point before was the interest-rate differential between whether it is u.k. or europe and the u.s. dollar and that drove the overall pre-coronavirus narrative for investment. we think this will reestablish. the main thing is the differential is quite small now. when people start to look forward, they think of the u.s. stimulus and the u.s. outperforming economically post crisis. park, from brooks

macdonald will stay with us. we will talk earnings. this is bloomberg. ♪

nejra: good morning from london. is bloomberg daybreak: europe and here are today's top stories. u.s. coronavirus cases record the slowest daily increase in april. the fda says it is moving at lightning speed for a new drug. u.s. stocks and their best month since 1987. a loss on increased spending amid the pandemic. apple gives -- apple misses its

forecast for the first time in years. lendingfed expands its program. boris johnson pledges a lockdown exit plan saying the u.k. is past the peak of the outbreak. welcome to daybreak europe. we have seen the best month since 1987 for u.s. equities. for month in a decade equities. many markets are closed. in japan you are seeing red on the screen. u.s. futures indicate a second day of decline. u.s.rday's drop came from jobless rates. in europe, we're not going to have trading. have trading in france, germany, or italy. off across thek board except for oil set for a weekly gain. opec plus staging 10 million

reduction -- 10 million barrels of reductions. the coronavirus pandemic has made this earnings season highly unpredictable. more than half the firm's have reported rock-bottom. here to discuss another driver daniarket is bloomberg's burger. strategists had already cut expectations. did companies meet the lowest bar? >> for the most part. the way to think about it is that earnings have been bad but not worse than anticipated overall. just under half the firms have beaten expectations. and 42% have missed. that is not great when you we see earnings growth tracking. into the results come you see a clear divide. cyclicals lied. energy a big drag.

.ou think of dividends energy is down about 42%. health care, communication, utilities up 8%. that should support a good equity tilts. tilt. -- a good equity nejra: many have been saying that you can ignore the first murder. everyone is looking -- you can .gnore the first quarter what do expectations look like uarter.the first q >> we are looking at a black box. in earningsound growth next year. 2021 profits -- the average estimate is 2% higher than 2019. the key will be what the recovery will look like in the

second half of the year and what that means for next year's earnings. interestings an point. a strong rebound in expectations for earnings, the macro picture, gdp picture global growth looks pretty negative. there is a discrepancy between the micro and macro data which might mean we won't see the bounce back necessarily. ubs things european profits will be down 16% at the end of 2021 compared to 2019. a discrepancy and expectations tells you how cloudy the outlook is but still the consensus were a strong rebound is what is helping power rockets higher in recent weeks. nejra: great to have you with us. thank you. words get to the first news. donald trump is speculating china may have chosen not to contain the coronavirus. he has seen evidence that a lab in wuhan was the origin.

u.s. intelligence officials say they are still investigating the exact source. china says accusations it released the virus from a lab are unfounded. gilead scientists -- how much revenue can it generate on the company's earnings court. gilead says it is too early. amazon is telling investors to navigates as it the hardest time it is ever faced. it's all profit shrink. it is boosting spending to keep operations running smoothly during the pandemic. apple did not provide a forecast for the first time in more than a decade sparking concern that performance will suffer later this year. sending shares down. 1%pite the giant reporting a

rise in quarterly revenue. and retail sales head to a new record. 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. coming up, past the peak. boris johnson says the u.k. is through the worst of the outbreak and promises a lockdown exit plan. we discussed the outlook for the u.k. and the global lockdown next. this is bloomberg. ♪

♪ let us start with antivirals. fight thehe drive to virus in your body.

there was a recent promising report from a trial of gilead the company says ed helped patients recover faster from standard care. president trump has touted two anti-barrels that have been used -- antivirals that been used to treat malaria. -- there iscs limited evidence that they worked against the coronavirus. trials could have results this month. vaccines. toy are considered crucial the pandemic because they create widespread immunity. he also take longer to develop. that is because they must be proven to be extremely safe since they are given to people who are not sick. there are 70 vaccines in some stage of development. companies developing them include johnson & johnson,

sanofi in connection with glaze -- clay foes smithkline. vaccine is being tested on 45 patients and their maybe early results late this month or in early june. finally, the indirect therapies. they do not directly treat the virus but they help patients by mitigating some of the effects. such as difficult a with breathing or severe inflammation. roche are among -- is among the companies making these drugs. for more come you can touch our special coronavirus medicines, critical challenge saturday at 2:00 a.m. u.k. time. u.s. coronavirus cases recorded the slowest daily intake for april meanwhile, president trump will travel the camp david. a president isas preparing to resume travel and

reopened the economy. u.k. prime minister boris johnson appeared at his first press conference is recovering from coronavirus as he pledged a comprehensive plan to lift the lockdown in the u.k. and said the country is through the worst of the outbreak. take a listen. >> we are past the peak of this disease. we are past the peak and on the downward slope. edward park from brooks macdonald asset management is still with us. as we have been talking, you have been saying that in april investors wanted to switch their focus toward the decline in cases but also exit strategies for locked down i was reading something this morning saying that we talk about consumer demand potentially be an pent-up during lockdown but what happens if it turns out that the demand is actually restricted?

will we see a repricing of risk assets? much is if there ,s pent-up demand for leisure there might be strong restrictions about how to do that. if we look at one of the countries which is restarting next week, italy, italy is restarting its industrial, automotive, and manufacturing sectors. that is a rather good outlook. even if there is demand coming through, there will be supplies to meet its. some companies including hospitality where there will be restrictions. anything which contains large social gatherings -- there will not be a complete return to normal. there will be areas. instead of for example if

we don't see a grand reopening my colleaguely, as jonathan bernstein talks about, cascading bouts of travel -- trouble through the system, you have acknowledged we could see more bouts of volatility during this area. do you just still stayed tight and stay overweight in equities? edward: if we were seeing a change in terms of a major surge in terms of new cases, let us say we had gradual exits from lock down but even that was enough to spike a round of a second wave come that would cause us to question our narrative. if the economic recovery takes longer than expected and it is more of a protracted you, that , that will not change our base case. nejra: in terms of asset level of -- asset allocation come in

march you added to equities. that as of the gilts, is play on the u.k. or something else? edward: we have very low all in yields. that is true of sovereign bonds. .he all in yield the flexibility for the bank of england to experiment with more but is nottes, politically or economically that palatable. we think we are reaching the lower bout in terms of gilt yield. they may provide less protection. nejra: looking ahead to the recovery again, you pointed out that tech and health care are secular growth themes that could

perform well that when i think about some of the news we had overnight and the fact that gilead is caught between making a profit in treating the world and then you get these warnings from apple and amazon and the impact they have had from the pandemic, does that question that theme around tech and health care at all for you? it is important to delineate between the consumer stocks such as apple and amazon and those that are cloud-based such as google alphabet. there is a difference between those which are more linked to consumer demand. they have had a bit more of a wobble in terms of their profitability. in terms of health care, health care is a theme that is growth focused as his technology and it is a low rate environment even if we see earnings struggle again in the next six months

because of the fact that they are growth sectors. people will be willing to be patient for earnings to come through. for tech, there is a division tech and moreer business solutions. we expect that differential to carry on. brooksedward park from macdonald asset management. great to have you on the show. digging up on the theme of tech, twitter shares tumbled as the economic fallout from the coronavirus wreaked havoc on advertising sales. bloomberg technology's emily chang spoke with the ceo. take a listen. >> we really saw two different time frames during the march quarter. one was from january 1 and till march 10 when we were off to a good start especially in the u.s. we had a strong super bowl and a lot of great things were

happening around the world for us. from march 11 to the 31st, we saw ads revenue down 27%. remember, our business is one that really benefits from events. events and the events that bring people to twitter where advertisers come to connect with their customers around those topics. as events were pushed out and canceled, that had some impact on us. the second issue we saw is we are very brand focused in our advertising. brand advertising is harder to measure and is sometimes less orilient during an economic a more constrained economic environment in which we find ourselves today. this is a reminder how important our work around direct response advertising is. can you tell us about april and what you are seeing? facebook says it is flat. you have to be able to share

some insights into what we can expect going forward. thoughts give you two about the timeframe right now. the first one is it is incredibly dynamic. for us to discern patterns and articulate them publicly may perhaps put people in position where they are making judgments on things that are still anecdotes and not data points from which we can draw a straight line. 11ondly, we think that march until march 31 gives people a good glimpse of what it is been like for us to operate in this environment. we already in that timeframe saw advertisers pivot their campaign. instead of advertising waskbooks come intuit advertising the gofundme for small businesses. hyundai were advertising a program where they were helping their borrowers. we have been working really hard

to help advertisers make this is it and some of it happens quickly while other parts of it take longer. users andtalk about the fact that the olympics are being pushed back, live sports are not happening. if that continues, will that hurt the help the user growth we have seen? >> we definitely benefit from the topics and events that bring people to twitter. sometimes they are scheduled things like the olympics or march madness or other events that cannot happen or are delayed the cause of the global pandemic. but then there are things like the last dance which so many of us are watching where the concert that was on television all over the world a couple of weeks ago bringing people together despite the pandemic or in some cases because of it and are great audience opportunities for us and ultimately give us the chance to have a larger audience that we can work with for a much longer period of time

to show them the other great things on twitter. muchy to think about this more about the long-term than about any particular event and how that might affect audience growth. that was bloomberg technology emily chang speaking with the twitter cfo. boeing is rolling out federal aid instead selling $25 billion of bonds. the largest offering this year and the company says it eliminates the need for more cash. boeing burned through the most money in the first quarter looking to shore up finances by cutting jobs and cutting production. tracker. to market shipments totaled about two inches $75 million in the first quarter -- two edge is $75 million in the first quarter. british airways may close its gatwick hub.

a letter to pilots, the airline said there is no certainty that flights from the airport will ever resume. this would come as a blow to london second busiest airport. virus hit tech. we look at how apple and amazon have said this quarter and what is coming up next. this is bloomberg. ♪

nejra: this is bloomberg, daybreak year. let us talk tech and amazon and apple which have both taken a hit from the corona virus pandemic. jeff bezos said the online retailer may incur a loss in the current quarter as it boost

spending to keep legit sticks operations running smoothly and apple has skipped out on giving a forecast for the first time in more than a decade as it reported heartily revenue that grew just 1%. tim cook said the firm saw a pickup late in april however shares fell for both in extended trading. alex webb joins us now. great to have you with us. thank you for joining. if we look at amazon come in the past investors have been sanguine about amazon spending plans. will they take the same view over the spending they are having to do for the pandemic? >> i doubt it is the answer. in the past, they have been pretty happy or sanguine about the fact that amazon has raised a thin margin based on the knowledge that reinvestment for profit has been or has led to long-term growth. securing new customers by investing in apple prime. this time around -- amazon

prime. this time around, they are investing in equipment and more people to fulfill deliveries in the current climate. that does not guarantee long-term growth. customersees that the that are using amazon right now will continue to do so. nejra: and the competition is stepping up. the point of no guarantees, it is hard to have any of those from any company at the moment but apple for the first time in more than a decade not providing a forecast. how worried should investors be? two reasons to be worried and one to be positive. you can see why they of not given a forecast because they are dependent on people leaving their homes and trying out phones and saying they will buy them. none of us really know when

lockdowns will be eased globally. if they are eased and people will go out and buy phones, that is positive. the second reason to be negative is will people have the income to spend on apple products when they do leave their homes? it does not look too cheery. quarter, in italy, the lockdown kicked in halfway through the quarter and amazon was still raising its price target. apple built some resilience. thank you so much for joining us. bloomberg opinions, alex webb. let us get a check on the market action. futures point to a down day. in europe, many markets closed but ftse 100 futures down 1.5%.

pretty much risk off across the board. this is bloomberg. ♪

matt: good morning and welcome to "bloomberg markets: european open." i am not miller in berlin on this labor day -- i am matt miller in berlin on this labor day. we are one hour away from cash trading where markets are open. that may get you your top headlines. tech troubles, global stocks get dragged by big tech. a possible loss in the second quarter, and apple tipping its forecast out right.