francine: global stocks fall ahead of a press conference from president trump. he has new policies on china. beijing calls actions on hong kong "purely nonsense. unrest in minneapolis. order reaches tensions with social media groups. renault's shares fall after they more thanill slash

4000 jobs worldwide. good morning, everyone. this is "bloomberg surveillance." i am francine lacqua here in london. we are getting data out of italy. a bit better than expected. is worse than expected, not better than expected. shrinking 5.4% in the first quarter, also after it was revised from a 4.7% contraction before. that is having an impact on the stocks, if you look at european stocks, they are down to 1.3%, and if you look at u.s. treasury yields, 0.6%. you what is going on, the crude oil with the biggest advance on record. president trump has said u.s. policy measures on beijing's

move on hong kong. china's crackdown as trump's friend to retaliate have further escalated tensions. for more on all of this, we are joined by our chief asia economics correspondent, and the koran. -- enda curran. enda, what are we expecting trump to do? quiteit could be significant for hong kong, beijing, because the president has a range of penalties to choose from. he could impose sanctions against individuals, individual chinese communist party officials, either in hong kong or on the mainland, or he could cause on the other end of the spectrum, take away the special status of the u.s., and if they go for that option, hong kong is treated no differently by the u.s. than any other chinese

city. that would be quite a risk, and harm both economies. is launching countermeasures against what they call foreign interference. one of the most likely options that they could retaliate would be a potential blacklisting of u.s. companies operating in china, potentially making it much harder for u.s. companies and operate ase they have been in recent years. enda, how would china respond? how quickly with this escalate, or does it escalate and then stand still? enda: i think it could escalate very quickly. we have already had a significant week of fast-moving developments here, and when we look at the record from both a hugethey are making

mistake, and of course you have the chinese foreign ministry pushing back and saying the u.s. are talking pure nonsense when it comes to hong kong. clearly there is a big gulf between both sides. a lot will depend on what steps the u.s. takes overnight, if they go hard on hong kong, then you can expect china to retaliate in kind. there is no sign of a circuit breaker, it is caught in the middle of this geopolitical confrontation between china and the u.s. francine: enda, what is the rest of the world doing? we also heard from the u.k. foreign secretary, dominic raab, possibly opening path to citizenship for hong kong residents. how much does that change? enda: well, this is the most tangible step, i think, we have had from the u.k. government. the u.k. probably has more of a vested interest than any.

what they are doing now is essentially they granted hong kongers something called a british national overseas passport, hong kong residents holding those. those passports are pretty limited. residents hong kong to stay in u.k. for a limit, but they are talking about removing that limit, for an extendable.. -- and extendable period. that is sending a signal to beijing that the u.k. government is watching this and have some measures to respond to if they need to come and if they are going to look out for the hong kong people. that is the kind of message being sent to beijing. we are expecting more message from the eu in the coming days as well. francine: thank you so much, bloomberg's chief asia economics correspondent, endocrine -- in the koran, joining us from hong kong. enda curran,en --

joining us from hong kong. let's get to bloomberg first word news in new york city with ritika gupta. trump tweetingnt about minneapolis. the offending line, when talking about the protests, he said "when the looting starts, the shooting starts." in germany, chancellor angela merkel is talking about a second phase of stimulus. bloomberg has learned that christian democrats are pushing back to avoid too much debt. the coalition is set to discuss the proposal next tuesday. u.k. business confidence has slumped to record lows seen during the financial crisis. optimism and hiring intentions climbed this month more than 40% of firms say they now plan to reduce headcount over the next year. the gloomy assessment comes as stocks are emerging from

lockdown. in japan, factory output dropped last month by the most since the 2011 tsunami. industrial production sliding more than the month before. retail sales also slumped sharply. it comes as the government announced this week it was doubling the size of its response to about 40% of gdp. global news, 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. francine? francine: ritika, thank you so much. now, for is holding a press conference in paris after the french automaker talked about cost-cutting plans. we will keep you updated on renault. we are also speaking to leadership of the french lawmaker -- carmaker. 14,600 jobs worldwide will be lost at renault. we will be speaking to the chief executive at 11:30 a.m. u.k.

time. coming up, we have plenty more on the markets. sell in may or stay-at-home? either way, you may be regretting it, with stocks to end the month with solid gains in th u.s.. -- in the u.s. we will discuss with jim mellon of burnbrae group. that is coming up next, and this is bloomberg. ♪ rg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. now, as we head into the final

trading day of may, let's discuss risk sentiment with a big-name investor. stocks were sent to and the month with big gains in europe, 4%.s&p up as countries around the world gradually ease their lockdown, is it already priced in? i am joined by jim mellon of burnbrae group. thanks so much for joining us. when you look at what the markets have done, what they will do next, and the legacy of the virus, will markets behave differently because our ways of life have been intercepted and will continue to change? jim: that is a great question. it is sort of a multifaceted question. i would say that most of the rise we have seen in markets around the world have occurred as a result of monetary and fiscal stimulation, and in fact, the increase of market capitalization, which is about $15 trillion since the bottom around the world, has been

matched by a fiscal and monetary stimulus of about $15 billion, so the amount of money that has come and i think has been the main propellant to the recovery in markets. we have now got to the point, where in the u.s., the market is priced fairly aggressively, about 24 times, 25 times this year's earnings or maybe 25 times next year's earnings, qualified by the central bank stocks, which leads me to worry about the future direction. i would say i would certainly not by the market except very selective and some difficult stocks at the moment, and i would look elsewhere, so europe, perhaps, where stocks are still there is abut recovery, even in the u.k., there is a recovery that is undergoing now, and of course in asia. i think out of the asian markets, japan shines the most for me. francine: what does it mean for real estate?

what will be the thing that will change the most, post-virus? jim: well, that is a great question. people will say, what we have to spend five days meeting and sit in those factory farms hypothesis, could we just work at home? i suspect it will be a combination of working at home and going back to offices, which ,s why maybe the we work model if not so badly executed and highly indebted, is not such a bad idea, because maybe people start using a flexible office space. it might be a stop to look at in that respect. but i do not think the people being social animals and eating some structure and eating some structure in our lives that we can all work at home forever. so i think people will start going back to the office. you will see faster recoveries for normal practices than most people are suggesting at the moment. , does it mean that

you would be interested -- i know you have been involved in real estate in the past -- would you be interested in anything technology-related? i will get to health care and a second. how will technology change us? jim: well, technology is already changing us. the fact that i am speaking to you not in a studio but in a hotel says it all. the connection is pretty good. i think everyone is getting used to doing video calls, teleconferences, webinars, and that sort of stuff. it is an accelerant of something that was already in place. however, these technology companies are very well priced. this is not the time to be chasing a fad, stock market wise. in terms of real estate, it is mostly in residential, not so much in offices. i think residential will be absolutely fine. we all need somewhere to live. that is not going to change them

especially now that we are spending so much time at home. estate is aeal relatively stable investment. there are always countries that are highly indebted. they are not linked to closely to retail, which is really being damaged by this event, and will continue to fail. also in offices in the old conventional type of office, you know, the ones in the city that we are so familiar with. francine: jim, i know you also get a one million pound gift to oxford toge at improve resilience. the reason is, i imagine, because of the work you have done and biotechnology and also trying to figure out, get out, health concerns -- you know, health concerns, given what we are living through. what are you hoping to achieve? jim: basically, i am really keen on building up immuno resilience

in the elderly cohort, because as we have seen, the older people in our society have been much worse affected by covid-19, and there are ways, there are technologies around that can be accelerated to do two things. one is to build up that immune system and elderly people, so they are not so badly affected in future pandemics -- and there will be future pandemics. let's not begin any doubt. secondly, to build homegrown industry, both in the u.k. and in other countries around the world, which prepares us for allowspandemics, which us to develop things like antimicrobial resistance products, or a vaccination platform, you know, manufacture ppe and all that stuff that we were so lamentable about in the early stages of our response, and what has shocked me and, i guess, many, many other people, is basically the response to this pandemic was similar to the response in 1918 and 1920. in other words, it was medieval.

we live in this technology advanced age, and we should use that technology to make sure we are much better prepared. and group of scientists entrepreneurs are preparing a paper to get to the british government -- i am sure people are doing the same thing around the world -- to show a potential path forward for us to not be affected in the same way as we have been in this pandemic. but i will say that the covid-19 boat has sailed. i think we are toward the end of the crisis. i think there will be a vaccination. i think it will be treated. i do not think the companies that are out there are trying to wrap themselves with a covid-19 otherwill be anything than distant memories in a year wayo's time, and the same everyone jumped on the cannabis bandwagon and that sailed, it will be the same with this. but we need to build a broad platform of immuno resilience for elderly people. and it is possible, given the

technologies that i mentioned in my book, to do so and to accelerate that process. that should be the number one priority of governments around the world. were we soim, why badly prepared for this pandemic? did we, you know, underestimate the risk, or is it because, you know, it is a difficult choice to basically choose between the economy and health? jim: yeah, that is a great question. no one will really know until it is all over. there are all of these international comparisons. we are doing work in denmark, we are doing work in sweden, all of this is irrelevant at this stage. we have to look at this very close response to future pandemics and work out why this pandemic came along. and let's face it -- all of these pandemics -- the avian ones, the swine ones, that relate to too much antibiotics in the food chain, probably, and

the most recent one come from agricultural malpractice, mostly from the chinese, but we should not blame the chinese, we need to work with them to make sure it does not happen again. one of the great things that is happening in our society today is that there is a revolution in clean food, particularly in clean meat. we have seen it was beyond burger, and possible burger in the united states, and a variety of other countries, and we are seeing it in cultured meats, which will be on our plates in the next five to 10 years. if that industry takes off, it will have many positive effects on the environment, unhuman health come on release of land for housing and also for other health, onn human release of land for housing and other things, animal cruelty will go down. it is here and now come and i hope, again, because of this tragic event, the government will take note. this is the time to be investing in new food technologies to help

us to avoid a future pandemic, reduce antibiotic use, and to reduce the lack of hygiene and some of the food chains that we have around the world, and of course these pandemics. francine: thank you so much for joining us. jim mellon there, chairman of burnbrae group. up next, we talk about renault, racing to cut costs in a bid to outlast the auto downturn. we will bring you the details next. this is bloomberg. ♪ mberg. ♪

francine: this is "bloomberg surveillance." i am francine lacqua here in london. renault is cutting about 14,600 jobs, lowering capacity to out downturn.tlast the joining us is bloomberg senior editor benny tamil. nny, will we see more job losses from automakers all around the world? yes, this is only the beginning, the tip of the iceberg. we have seen this, predominantly in aviation come over the last couple of weeks, really big numbers coming out of some of the companies there. that part of the industry has not been that affected so far. we saw two job cuts announcements by uber, for carmaker and a niche

cutting jobs, but the big carmakers, we have not seen that scale, so renault coming up today with a number pretty big, 14,600 jobs in total, that is probably the big -- the first big number we will see. there will be others. interesting to see the breakdown between france and the rest of the world. france, and in 10,000, so the much bigger part of this is a broad, and that also has to do with the political invocations. this is an economy that means the french base to back it up, and you cannot do that if you are sort of biting the hand that feeds you, so most of that job cuts is abroad. francine: also because what is going on or what had happened, does it put the alliance in any risk at all? well, the alliance has

been trying to steady the ship, since the arrest and reappearance of carlos ghosn. we have seen fairly substantial cuts at nissan as well this week, so they are also reducing ofir output and sort shrinking the amount of models they are making. what the alliance is trying to do now is sort of get on a french path and get even again and sort of put the whole mess that they have been through in the past year behind them. francine: benny, thank you so much, benny kammel there, and you are watching live pictures of that renault press conference. later today, we will be speaking to the chief executive of renault, clotilde delbos, at 11:30 a.m. this is bloomberg. ♪ this is bloomberg. ♪ staying connected your way is easier than ever.

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faster than a call. easy as a tap. now that's simple, easy, awesome. francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua. >> today, president donald trump

plans to announce new u.s. policies toward china. markets bracing for punitive action. have been rising recently with washington and beijing also sparring over the coronavirus. the president says we are not happy with china. the u.k. is opening a path to citizenship for 300,000 hong kong residents. raabgn secretary dominic says of china continues down its current path, they will change the legislation. they will lift the cap to 12 months as a pathway to citizenship. the coronavirus is shattering the global aviation market. the reading agencies outlook for the company is negative. earlier this month, the company said it was scrapping about 9000 jobs.

this is bloomberg. francine: thank you so much. twitter has put up a role violation notice on president tweets aboutrecent minneapolis saying his comments glorified the violence. the social media giant has already earned the president's fact checking the notices next to some of his tweets. he signed an executive order aimed at limiting the protections of social media companies. alex webb joins us. rowinitely an escalating between the president and twitter. can he actually stop them or hurt them because of this? alex: it seems not.

to force them to do anything. the one thing that is really

they should take stuff down if

but of the public view and actions toward the priority. you have to take into account a very important factor. francine: will the company become bigger? are you looking at acquisitions? are you opposed to the big luxury companies? our job is focused on the

development of the brand. we are not at all thinking of the listing. we are working to conserve our hard work. showed strong position. now we will wait for the market come back. we know our balance will show that we have had two or three months of lower profit, but it is going to be the case for everyone. as aconcerns our position brand and group, we want to get stronger through direct lines, not through strange ways. we are very confident, calm about the way ahead, and we have many projects to develop. product: that was the code chief executive officer. we will have plenty more throughout the day. staying with an italian flavor, but this time the italian governor, central bank governor, his annual speech in rome, he

said there is a need to resolve the structural problems that seem to be growing in italy. he is also reassuring the getets and also the italian is also sustainable. coming up, how are early-stage investors adjusting to the economic ground in 2020? the chiefeak to executive of moonfire ventures. that is coming up next. this is bloomberg. ♪ this is bloomberg. ♪

>> this is bloomberg surveillance, i'm printing like

what -- i'm francine like law. >> softbank doubled the pay of its vision fund boss and $15 million for the year, despite the investment business to the the over $17 billion loss, biggest ever loss in its 39 year history. the founder took a 9% pay cut. astrazeneca unveiled the data behind a win for one of the blockbuster drugs. it significantly cuts the risk of lung cancer deaths. it is the biggest product, with sales nearly $1 billion in the first quarter. chris weise is preparing to review one of its most part purrs -- prosperous businesses. bloomberg learned it will be focused on loans backed hard to sell assets. tois reviewing lenders

clients. that your bloomberg business flash. francine: how early-stage investors are adjusting. route --uest coaching contributed to dozens of startups. he's out on his own. he says better technology is the key to better investing. we are delighted to be joined by mattias. great to speak to you. we look at the way technology is changing our day-to-day lives, the pandemic has changed the way we live and work, will be go back to normal once the virus dies down or we have a vaccine? are these technologies that stay? guest: these are changing times.

i believe it is very hard to forecast everything that is going to happen. some things are going to revert and some are not. that we have changed the way we are working -- but we are changed -- we have changed the way we are working. for through remote working for health care, a massive increase in the digitization of that sector. i've invested in a company because i'm seeing the digitization of health care is recovering, and what usually took a year, sometimes weeks, but now is taking a day or two to implement because we're realizing the traditional way of delivering help has to change. so payroll health is a

management platform that helps patients make better decisions. ultimately, it's about improving performance and productivity with technology. and managing a patient is a complex project see have to be careful with that. care prettyalth intuitive. is there anything else? some of the social calls, people are using these platforms to conduct meetings. is there anything else people don't necessarily realize right now that will be left after the verdicts -- the virus goes? mattias: that's a great question. there are big changes happening. crazy andeen going everybody has been using zoom on a daily basis, many of them have never -- many of whom have never used it before. then you have a house party that

increased. coming in, tools because what we also require is spontaneity. you talk about hey, what is going on? what is interesting, very busy started in they intoy, and people can jump a version of twitter for a smaller group of people. that's getting excitement in the valley. you have other interesting hours,like the last 24 sequoia was putting $29 million into a video messaging startup. you can spend and -- sent and project a video, and people can watch it whenever they are available to watch it. francine: what is the difference between that and what's at -- whatsapp?

if you are in early-stage investor, you make a decision between two ideas? does it depend on the founder? is it the money did -- money behind them? how do you make those decisions? mattias: it is clear that the founders are very important, and essentially their vision, but many times we feel that two things look very similar, but ultimately you have very different outcomes in the end because the way we start using them. when you talk about payments, for example, there's a big difference between ign and foreigner. but people who are in that industry, even today if you are using, you know, whether it is, like you said, whatsapp for video, or zoom, is a different experience, but both of them are providing different types of communication tools. francine: do you see -- there's

a huge fight between president trump and a lot of the social media companies. just a couple of hours ago, twitter put a warning on the latest president trump tweet for glorifying violence. for that change, and anyway, the the way social may operate? or is it too soon to tell? mattias: first of all, i'm not an expert in constitutional issues. but trump will challenge twitter and it will be painful for the organization. it is going to be a tough distraction. but, you know, social media needs to be careful of their brand and what it stands for. they rely on them for news sources and the need to stick to a high standard. if they are not tested, they will lose users. the amazing thing is, it is kind of hard to imagine social media is going to be shut down

completely. more about this is politics than technology. it is difficult to predict the outcome of this controversy with things involved with the president. but if nothing else, we know that this is going to be -- social media is going to be central to our lives and we will see how this unfolds. francine: when you look at companies to invest in, do you think that the fact that maybe we are going into a world we become less global, maybe there is a realization amongst countries they have to invest in more natural champions? does this mean we have to have more big companies in your to test in europe travel -- in europe to rival the other ones? will it be just western companies that dominate? mattias: another interesting questions.

the reason why started -- interesting question. the reason why i started when fire was to help entrepreneurs -- moon fire was to help entrepreneurs. i think that is where the new champions are going to come. when we are thinking about champions, we're not talking about winters winners that are going to be building billion-dollar companies. we are looking at building $50-100 billion evaluated companies. they are working hard to become a leader in this sector. i think it is really important and i think it is the reverse. actually think in this new irld, we are going to be -- actually think in this numeral, we are going to be a lot more global anywhere. that's what this new world order is about. geography is being destroyed. francine: thank you so much. mattias, founder and chief

executive of moon fire venture, some good ideas about how we invest in technologies. now, european antitrust commissioner holding a briefing on 70 support measures. this is what sheet -- sovereignty support measures. this is what she is saying so far. she has given comfort. we have plenty more on that throughout the day. up next, back with the bank. we look at who is going public in these unprecedented times. that is coming up next. and this is bloomberg. ♪

francine: economics, finance,

politics. this is "bloomberg surveillance." latest to the list is jd ep. the total value of offerings this month is nearly $18 billion, the most in two years. about this istalk bloomberg's dani burger. today ise's listing one of many ipo's beginning to come back to the market. market volatility is subdued. these companies want liquidity. now is the time to jump in maybe if you have been holding off the ipo or a secondary offering. we have seen bankers start to speed up this process. they want to get in right now when markets are calm. get in.s wanting to

this is the quickest ipo of the size. that just shows you how desperate these companies want cash. they think now is the time to do it. we are also seeing demands on the investor side as well. companies that have really -- recently ipo'ed are outperforming. they're filling up their order books really quickly. to ipo early because of increased demand. francine: we are also seeing more demand for corporate bond sales. they are smashing records. what is behind that? globally, is true especially in the u.s. this week means we saw u.s. investment grade bonds, market value, smashed through $1 trillion offered. this is double the pace of 2019. usually, it takes much longer to get to this point. part of it is the fed offering

to support companies. this is what they had in mind. they wanted companies to get cash so they could support themselves for the pandemic. they are going to the etf market. as soon as they announce their intentions, the floodgates opened. on the company side, cash is crucial for them. they need that liquidity. we are seeing so many equity listings. bankruptcies in the u.s. have seen the highest rate since the financial crisis. most strategists do see this start to wane toward the back half of the year, especially if the economy rebounds and these companies don't need to take as much risk. corporate balance sheets keep adding leverage. this has been a problem even before the pandemic. francine: thank you so much, dani burger. stocks actually falling with u.s. futures on friday.

it is also the last day in may. president trump's press conference on china is threatening to further stoke the tensions between the two largest economies. treasuries gaining along with european bonds. i'm also looking at stocks in shanghai. the offshore one is study and crude oil is turning its biggest monthly event on record. gold edging higher. we continue in the next hour. tom keene joins me out of new york. a little bit later, the cleveland fed president joins us. this is bloomberg. ♪

global stocks fall.

i have a press conference from president trump. twitter says a post from president about minneapolis breaches rules. his executive order increases tension between the white house and social media groups. we hear from the chief executive in the next hour. good morning, everyone, this is "bloomberg surveillance." we are getting some data out of the eurozone after we had gdp figures in italy worse than expected. inflation seems to feed into the ecb's thinking. inflation rates falling to zero point 1%, the lowest in four years. pretty much to be expected given we halted the economies were a couple of months. tom: