yeah. that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [music playing] . 10:00 in central europe. 9:00 in london welcome to "street signs." a rick-on rally. the dow spikes more than 1,600 points on signs of coronavirus pandemic may be flattening out travel and leisure stocks. british airline the next to secure a loan from the trezy

and 0en the blocktalks for the efforts. telling this program unity is what is needed >> a relief package is absolutely necessary it is necessary because we combat a common enemy in europe. solidarity has to be demonstrated >> uk prime minister boris johnson is admitted to the hospital and dominic raab will continue doing had is work >> there is incredible teamwork behind the prime minister to make sure we get him better as soon as possible >> over to the wall here to give you a story of how the markets have developed

we've been on air since the open this morning and only seen gains pile on effective live so europe is playing catchup on the rally we saw in the united states and asia. it is a broad-based rally of the stoxx 600. we are up nearly 3% year, which takes us back 20% on top of the loan that we saw in this index let's roll the wall and show you how that breaks down in terms of that individual picture for different markets. perhaps i'm surprisingly given on the focus of the financial well being a lack of trade going on in the ftse 100 that may have to do with the fact that we had seen the dollar sterling it is up for debate at this stage. again, taking some of the glass

off at this stage. i would suggest that the speculation around this output for the group meeting is encouraging. some of these continental units higher italy is one of those markets that has been devastated by coronavirus infections and deaths but we are up 4.25% at the moment travel and leisure up over 7%. if you break that down, you've got the ez jet money they'll get from the coronavirus fund in the uk perhaps alleviating some of the liquidity and credit concerns around ez jet specifically we've also seen carnival up here pif, the saudi investment fund has stepped in and bought a

sizeable stake in carnival even though this business, the cruise ships have featured heavily in this story, there is a business there to be saved that will be stronger when we get to the other side of this. autos, again, question of support for some of the french auto businesses and a message around psa and fiat. will that continue how strong will the business be? both of them are looking at the financial incident if you look at the hard data, there is nothing that makes you think, i know, i must go out and buy a german stock now although the production was a little better than expectations but the big number started with

a zero jimmy conway joins us from citi. jimmy, the news out of citi really revising down around expectations what earnings growth will look like around full year 020 and what that means for the markets. maybe that can walk us through that analysis. >> yes good morning the research team has put out the note that needed to be down around 50% in a strong view that isn't prices by the markets. it chimes as our own trading view that we've probably seen the highs involved the fed has acted quickly. previous guests are saying they

had the playbook they've enacted that and bring volatility down. we'll begin to understand more about the full impact and equity markets haven't got close to that yet >> we got a bounce today in our audience, they are thinking how cute do i have to be to not get left holding the baby what will be your read to say, that's it, we are done here. the markets will level high? >> for us, you've got this enormous quantum support that is almost impossible to keep track of writing about how difficult it will be. it is all about building a bridge is it a bridge to nowhere.

it is about having enough stimulus and support to get us through. the question is we don't know how long that will be. keeping an eye on the pharmacology time line being attached to certainty around when some of these restrictions are removed and the economy can start to engage. we think earnings will reveal with cash flow and we as an industry focus on the more public end of the market the sme market has been impacted i think it is understandable why the market is rallying i would want to see earnings be given up before you commit to a more full time rally >> to confirm, the equity market is a failed measure of the economy at the moment is that what you are saying?

>> i think it is trading day today very much at the moment. if you look at the overall volumes you saw at yesterday's move that's one of the third highest moves in the dow what you are seeing. 7% moves become relatively normal, quote/unquote, i think you have to look at each one like what is driving it and is there a lot of volume behind it to vindicate that move where there is real conviction i don't think we are seeing that i think we are seeing the after shock of risk to work out the depth of this recession and indeed if the support is sufficient >> given what you are saying is our contemplation of this market

given outright clarity then? >> we fully concur with our research colleagues. i think that some of the measures the fed has engaged in has opened the front end and it has been incredible. it is a big tick in the box forei for ensuring blue chip activity. investors will be focused on the survival plan. there is an eye catching note about the economy. the time line isn't long enough.

so our view, yes, that the market will go lower >> i want to move away from the trading aspect to focus on some of the longer term perspectives here in this argument that may be the friedman doctrine the idea that share holder capitalism died along with this pandemic crisis. we seea world emerging focused less on the short-term earnings announcement and more of what corporates can do for their communities and other stake holders. give us insight into that world. >> caller: sure. the first step of that journey was already taken with the esg environment. the way i would call it is we

are seeing a bottoming in labor force. a lot of firms saying, we'd rather limit distribution rather than maintain staff. if you are seeing labor force going up, you could make an argument that that is going down it is conceivable that given the con instruct and size would have given the taxable and a lot of the focus we are involving towards is more of the society impact that corporates can have. i think you made the argument that might be very good for society but possibly less good for margins going ford and may impact distributions i think we are seeing that for example with some of the financial stocks >> thank you for joining us. jimmy conway, head of equity

trading at citi. moving on, uk prime minister boris johnson has been moved to intensive care after symptoms worsened after 10 days of suffering from the infection the uk cabinet minister said he's notaware of a npneumonia diagnosis and that deputy raab is now acting. >> he says if there is any change, there will be a statement. we can ascertain the prime

minister is still in intensive care again, let's go through what we do know at the moment. the prime minister was admitted around 8:00 p.m. sunday evening. the downing street press office was at pains to say this was precautionary. up until midday yesterday, it was clear the prime minister was still working. we understood he was still working on his red box and official papers. we heard from the prime minister on twitter or at least someone tweeting for him that he was in good spirits and praising the national health service. then we heard at 7:00 p.m. yesterday, the prime minister was admitted to icu, intensive care and put on oxygen there are reports that the prime minister received 4 litters initially of oxygen and was on a

ventilator that was before we learned that the prime minister's condition had worsened the press office continued to say it was a precautionary measure to take the prime minister who was conscience into icu incase there was a need for a ventilator dominic raab, the foreign secretary was deb tiesed >> the focus of the government will continue to be making sure the prime minister's direction, all the plans for making sure we can defeat coronavirus and pull the country through this challenge will be taken ford >> dominic raab talking there. it's extraordinary looking at markets that are risk on today

remain in peril. it will add to the uk death toll of more to a total of 5,373. the drop down day was around 30%. health experts and scientific community are advising they do not believe we are yet at the peak in the united kingdom and that could be next sunday, easter sunday. >> hopes of the collective response to mitigate against the fallout and talking about what measures could be taken when we come back. there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need.

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no matter what music you like, stream it now on pandora with xfinity. and don't forget to catch trolls world tour in theaters and at home on demand friday.rated pg. let's party people! ♪ one more time the death rate from coronavirus has slowed in italy and marked the smallest increase in four days the number of cases has slowed the head of the institute says

it is too soon to say there is a decline. in france, the death toll stands at almost 9,000. a warning the country may see its deepest economic down tuturn since world war ii and they say we are still some ways away from the peak. >> that's right. the peak is when the numbers go down the numbers are not going down we've seen the numbers, the growth slowing that was the case for death. yesterday, the numbers of deaths grew again it is not a linear process the number of new cases has been slowing down the number of admissions in the intensive care have been slowing down we are still in the middle of it bare in mind that france is

entering the fourth week of confinement. it is expected that it will be extended after we have seen nice weather in paris and people starting to go out a little more they are tweeting saying i've seen too many people in the street you have about half a million fines already put to people for not respecting the rules of the lockdown there is a concept of the economy. speaking to the senate saying this will be the worst recession for the country since world war ii the previous worse recession was in 2008 when gdp was down 2.9% that leads to the statistic that two months of confinement will

shave off 6 percentage points. entering the fourth week saying the lockdown is more necessary than ever. trying to square the circle here on confinement as well as the economic impact. difficult situation here >> thank you germany has reported better than inspected industrial output numbers. a warning that it expects industry to tumble to lows it has not seen since the early 90s over the second quarter. which area within the industrial sphere is holding up at this point? >> actually, chemicals are not

doing too badly. we have text tile and pharmaceuticals. overall, the situation is very dire let's concentrate on the ifo expectations the ifo is saying for the next three months, the german industry is expecting the worst slump ever they only started to record that number set in the early 90s. we can also talk about probably the worst down scenario since the second world war we had a similar situation in the 70s with the oil crisis. today is a lot worse than that the measures are in place. just as we spreek now ahead of the institute, which is the main

institute counting the number of virus speaking here. he is saying it is too early to call that situation currently. it is too early to say, we need to have a relaxation taking place. that was the same as they were saying yesterday when she confronted the press take a listen to what she said about the state and situation in germany. >> translator: we have a big health challenge impacting all member states, however differently, it is a shock that is important to understand. i've repeated this during previous crisis and i stress this now more than ever, germany can only do well if europe does well >> what she also said in another part is of course the government is thinking about how to exit that situation, the lockdown of the country but it is also too

early to put a date out where we will have a relaxation of the lockdown situation because the numbers are not yet going down european finance ministers are moving close tore a coronavirus relief package eu sources si ministers are close to approving a $400 billion credit line through the block's crisis fund. we had the former ecb president on programming earlier he dismissed concerns about a rerun of the sovereign debt crisis after the gfc >> we will have a substantial significant relief package that will help on the fiscal side of all countries.

particularly those countries that have large, i would say, data outstanding i am very confident that the measures would be taken that would not permit risk crisis to emerge >> silvia is back with us. i think you have some insight. how large of a package are we talking about? >> caller: there are different things in this package if i start with the esm credit line, this has been approached by germany and the netherlands there have been some developments ultimately, this could reach $240 billion euros netherlands and germany wants light conditionality as

countries such as italy do not want debtor tough restrictions attached they do not want to be in a more difficult situation in the future whenever they need to repay these loans. discussing the conditionality and what to do with the joint debt italy, spain and france, they still want some guarantee there will be some joint eu debt issue e ance even if they were to approve this nevertheless, they are expected to green light the proposal to raise $1 billion euros they also expected to approve further help that could

ultimately reach $200 billion euros. in total, today's package reached half a billion euros the minister still needs to figure out what they are going to do about this esm credit line >> thank you still to come, will the u.s. join potential outcome cuts. it will watch the meeting on thursday we will have shortly the iea's fatih. th icongn mont there is a chance that that's the last time. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan. this can help you cover your essential monthly expenses.

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we are back. welcome to "street signs." i'm geoff cutmore. the dax hitting a five-week high on signs the coronavirus pandemic curve could be flattening in western europe the low-cost carrier has become the first british airline to

secure a loan from the uk treasury the uk prime minister johnson has been admitted to intensive care dominic raab stands in for the leader saying the government will continue its work >> there is an incredibly strong team spirit behind the prime minister. reports suggest opec and reduced production >> if you are a believer in markets. i can guarantee you there is a cut. let's update you quickly on the markets. we have a rally taking place in europe the gains are strong across the board. we are up nearly 3% on the ftse

here the dax high at 4% the ftse mib back shy about 5% at this stage. it is travel and leisure that has been leading us. one, the saudis taking a stake through pif, carnival. the cruise ship business we've had money for ez jet which will ease concerns around liquidity there. we should mention oil and gas. we are up over 3% in the oil and gas sector at the moment on some hopes in the market that there will be something done to address this supply glut u.s. futures have improved through the morning. we are now indicating just shy of 600 points shy of the dow at the open here. we have a bit of time to play

before the start of the session here let's focus on oil and gas crude prices are trading higher around the biggest oil producers to cut output at planned talks on thursday. reuters reporting that saudi arabia and russia will seal a deal the meeting could help put an end to the price war which spark the sharp selloff as markets cope with the fall of command due to the coronavirus president trump has not made clear to the production cuts instead of saying they are already impacted levels. >> if you are a believer in markets, i guarantee there is a cut from prethis condition

this happened because of the virus. it knocked out 40% it went down in one hour no, i think it is happening automatically. nobody has asked me that question i'll let you know thursday evening. the executive director for international energy agency and steve will join in the conversation sir, can i get a reading from you, we've had a lot of sources suggesting we are edging toward an agreement what is your read on the situation where we are going to see an agreement on output cuts. >> first of all, i should say that the news of the day is that

the day after the opec plus meeting on thursday and friday, there will be a g 20 meeting in all countries. i make this call that all countries come together and discuss about the oil market stability. i am pleased that our call to transmitting the one direction and saudi arabia the president invited all g-20 to meet there. the reason this is important is two reasons. one, even if the saudi/russia agreement takes place, people talk about the production cut,

this will not be enough to face the big problem we are facing. even if there was a 10 million cut. this quarter, we expect still about 15 billion off the stocks. that will be off the markets for a couple of days or couple of weeks. there is still a huge demand of oil in the market. this is one reason the opec plus meeting alone will not be enough in terms of bringing the volumes down second, i think the world needs a global response. we called a meeting and they have accepted that i hope that this signal can come

on friday from the g20 countries together with also taking some measures to bring stability to the oil markets reducing the supply >> so i take on board keenly that this needs to be a more coordinated move to manage the market here. you've listened to the sound bite of donald trump who feels that the u.s. has already played its part in terms of output. do you agree or do you feel the shale producers need to review their own output numbers >> i don't know if the people around the world are aware the issue of today is not only the issue of the oil companies,

millions of people working in the oil industry and their families are facing a major unemployment problem it is a huge issue issues so big that i believe all the countries need to make a positive contribution for this problem. this includes all the g 20 countries. also given lifeline to demand the agenda of the g 20 countries this friday. >> doctor, you and i have spoke many of times about the tens of trillions of dollars needed in investments if we are going to

have enough energy for the 20th century. i cannot see a scenario where that type of investment will happen are we looking at another calamity down the line if we don't see that investment? >> this is a very good question. the oil companies, energy companies are facing a huge problem. i expect a huge amount of layoffs across the supply chain. this will affect investment. the main source here is facing that demand is extremely weak. extremely weak

in 2008/2009, we have seen oil collapsing it is much more severe than the melt down. oil is affected in a disproportionate way because of confinement. billions of people cannot take their cars, buses or jets. the therefor oil consumption is affected the investment required in the next few years to come will be a big question it is mainly depending on how the global demand will recover are we going to use in the future -- >> sir >> yes, sir. in terms of the clear and

presence situation, if we look at international production. most of the commenters i speak to and the industry, they believe it is shale that will suffer if we see the prices remain at this level for longer. it won't be russia or saudi, it will be shale and a huge disruption do you concur with that idea that shale is facing a clear and presence danger at these prices? >> i would say yes and no. it is yes or no because i think everybody, everybody, entire oil industry will be affected. number one, the industry will be fit because of the higher prices in order to produce. let's do not forget, if the

prices come back to the levels of $40, we may see a rebound of shale coming this could change the calculation of some of the countries. some say their intention for the change was wiping out shale. as i said before in my view, this is playing russian roulette if shale would come back, technology is there. if the prices come to $40, we'll see the shale come back. in the meantime, all the countries around the world whose companies are relying heavily on the oil rebound sooner or later. >> it seems if you have this g20 meeting on friday, there will be

a few voices at the table who will say they are quite happy with wear prices are at the moment why would they want to bring ultimately higher prices for consuming countries? >> oil industry is currently one of the pillars of the global economy. it is very fragile one of the major industries which employed millions of people if the oil industry cracks down, if the oil industry cracks down, the implication will be felt ever where the workers, the engineers, the pump stations in india or indonesia or other countries all economy will be effected from that. i don't believe any country

would benefit from a $10 oil price and it is severe consequences in the next years to come. i am sure all the leaders of the g20 countries will look beyond the next few weeks and have a bigger perspective if i can tell you one more thing, why it makes me pleased that the g20 country agrees with the iea proposal is because it also shows us in the difficult days ensuring the major work around the world they are giving a signal that they can come together to discuss and hopefully have an agreement. >> thank you for your time joining us from the iea. let us point out we are getting some news from tokyo, which i think you'll be

interested in hearing. the japanese prime minister shinzo abe has declared a state of emergency in tokyo, osaka and five other prefectures this to combat corona. this is something the japanese country had talked about and suggested it might do in part to reinforce the tightening lockdown measures. japan had been criticized by some others for not moving to stricter lockdown and quarantine measures earlier saying that withdraw of the emergency will happen as soon as it is clear that people's lives are not in danger. we are going to take a quick break. u.s. averages soar amid positive signs on virus numbers in new

york but does the rally really have legs we'll be back with more. jimmy's gotten used to his whole room smelling like sweaty odors.

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welcome back if you are just joining us, let me bring you up to speed the japanese prime minister abe has declared a state of emergency in tokyo a number of other cities that as a way of cracking down on the movement of individuals because of coronavirus the japanese prime minister says if we can reduce the movement of people by 70 or 80%, we can ensure the virus peaks out in two weeks. so tokyo, osaka and five other prefectures will operate under a state of emergency to combat the coronavirus. u.s. futures have largely strengthened while we've been on air. we are indicated to open 600 points higher at the start of

the trading session at the dow european markets have opened strongly on the back of gains made in the u.s. and because the asian session has largely supported those gains. barring australia where there was no change in interest ranges, we have seen markets broadly higher the chinese markets are coming back to their business after the festival in asia let's focused on the markets then that we saw yesterday very strong trading that we saw in the close where we pushed well above 7% on the average broad based stocks higher. the s&p also higher. our next guest says we are experiencing a bare market rally but that indicators point to the

resistance and more volatility to come. micha michael purves, good to have you with us. tell us why you see that course unfolding here >> caller: sure. thank you for having me on the 2,800 is an interesting level to watch i don't want to get too deep into technical details but if you measure the high in february relative to where we made lows in 2016, 2011 and 2010, you can see that they all sort of try and u late on retracement that end up being around 2,800. so i would be watching that level very closely

it is a retracement of about 50% of the high and low and the recent low as well as the lifetime high in february as well these have rely defined those in the last couple of weeks the level we just powered through yesterday. one thing that is important to add is that we've been through enormous volatility where we've seen the huge surge and we were pointing out was a surge higher. those are very characteristic of the rally. you have to be very thoughtful

and careful with not just one update or a series of up days that the market would go in higher you did briefly see that as a lower high that would lead to another leg down you mention that is an impressive gain. we saw that movie before back in 2008 at 28%, which rallied off the lows which gave way to the 666, march of 2009 that leads to the fact that we should retest at least from a few weeks ago. >> i want to get to the timing there. there was a view that if we got past the positioning,

effectively, you would have some of those buyers disappear and have some of those lows revisited. i know technology is also coming up and you are noticing that some of those tech stocks haven't posted >> that's a great point on timing what we've seen here is because of the covid 19 numbers were flat. you can get a context of how bad the medical data will be here in the u.s. as well as europe we haven't even gotten to these unknowns and what is happening with these earnings it has been

remarkable and performed better. it is not just long-term tech but smaller growth tech that outperforms dramatically i think it is very important to recognize that investors have made a lot of money in technology shares over the last two or three years we haven't seen any selling of those. if you draw on the channel of the big tech etf, we never got to the bottom of that five-year channel which we never did get to i do think there is another leg to come down in tech shares particularly i think that will come with earnings, which are just two or three weeks away the

next one will get a better contempt when p it comes to the top lines and how the margins can contract here. >> appreciate the analysis the ceo of capital advisors. karen, thank you we'll see you tomorrow we are wrapping up "worldwide exchange." let's give you the final world you are at the hospital where boris johnson is currently receiving oxygen >> the uk prime minister is in intensive care huge concerns. we'll carry on coverage on "worldwide exchange" coming up after a very short break here on cnbc .

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going for two. stocks looking to extend yesterday's gain as president trump touts the progress of more than a dozen potential covid vaccines and treatments. what the new york times is saying about one white house official's early warning about the u.s. outbreak fell on deaf ears and the uk prime minister is