that's all for this edition of "dateline" i'm natalie morales. thanks for watching. [theme music] i'm karen tzo. these are your headlines spain reopens a number of industries to revive its ailing economy. the numbers are down new infections per day, with all the measures we have taken, we are thinking step by step going back to a new normal >> shares of norwegian airlines

plunge half their val ru a positive surprise from china where exports and imports were much less than expected in march. u.s. bank stocks mark their first negative session in five as jp morgan kicks off earnings season with investors anxious to find out exactly how these banks have been impacted by coronavirus. >> this is a look at european stock markets are trading. don't forget they've been closed for the long easter weekend. we saw the look out of china export and import numbers.

expecting a plunge of 14% only down 6.6%. still a steel fall but much better than anticipated. that's been paused for the reopening of european markets. talk about when we'll start to see the easing of lockdowns. europe starting to layout plans. that is really starting to help out. we are still witnessing a little red ink at this stage. the other big catalyst is landmark and the production cut of oil it has been a slight increase this morning it certainly didn't move the needle on the spot as anticipated. these markets are a little more anticipated as a result of the lack of movement on the energy price. what we've got now as we switch over the charts. those boards are negatively

impacted with err down 21 points translating to the red 1% higher for the dax. we gave early markets about a third a percent on the handle. and on italy, we watch the country 19% in the green still on some decent gains the european commission, it will next week unveil a plan for eu members to coordinate an exit to the lockdowns according to the times. the president there announced a lockdown extended until may when schools will begin to reopen anyone with symptoms will be tested and anyone infected will be given masks he says progress is made but the battle is not yet won. >> translator: there are hopeful

signs but nothing can be taken for granted. in the east, hospital services are overwhelmed. on the french mainland and overseas, the system is under tension and the epidemic is not under control. we must continue our efforts and rules. the more lives will be saved that's why strict confinement will be observed until may 11. >> telling cnbc, berlin will weigh the perspective. >> we have managed through it very well but we need to find the right balance. i would say it is not the health of people versus the economy because they are very much interlinked. you need to have a strong economy. unemployment is harmful for the mental and physical health of

the people too we need to find the right balance. now with the numbers down. the number of new infections a day and the measures we have taken, we are thinking about step by step going back to a new normal >> also while speaking to frost, he admitted the european union initially struggled the coordinated response he initiated the rescue package showed the block remained united >> at the very beginning, the european union is still very disorganized we have pulled together and we are standing strong. we are helping each other, for example, germany is taking patients to treat them in our hospitals from spain or italy. then there is the economic die mentions with the $500 million

euro package in the past days. i would say we have a good base to help to support those who need to have economic support in the crisis >> the number of fatalities has risen among 15,000 a warning the death toll will continue torise this week before plateauing. foreign secretary has signaled the lockdown will continue ruling out an eminent change to restrictions what does the trophy jeajectory like in the uk it seems we are nowhere near the target just yet. >> absolutely. the welsh yesterday didn't do any tests because it was a bank holiday. so there are patchy performances 18,000 tests were carried out in the uk on saturday but that is a

long way short of the 100,000 promised by the health secretary by the end of the month. there were question marks about whether this included all types of testing including tests not available including anti-body and antigen tests. i don't want to look at this in the round as well. there has been a lot of questions about protective equipment and the testing. the broader strategy and were they took late there have been some successes and it is important to point out. the facilities like this one behind me, which is the exhibition center in normal life a facility put together with up to 4,000 icu beds an put together with royal engineers and workers in the space of nine days if they can do that and r

replicate the same in birmingham, manchester, glasko, be bellfast as well that growing excess the government would point sto to say, yes, we have made our mistakes but with emissions slowing and the hope for infections and the excess of icu beds perhaps it is not going as badly as you fear. this isn't just about the health side of things or the economic side they have reportedly told the hit to the economy is as much as a 30% hit gdp. the cabinet level, we'll come to

that the debate about the economic ramifications or the pure ramifications and when one can lesson off and get the economy back up and running. that's a stren uous debate we don't think will be solved this week raab is expected to announce on thursday at least three more weeks of lockdown on thursday. i watched a video on the prime minister where he is recovering. he made a speech about protecting the nhs and shielding the nhs and maintaining the lockdown here in the uk. >> thank you i want to look at basic resources. green continues today but some of that has been given back as

sessions transpired. it was stimulated out of china the fall in march 6.6% better than anticipated in the 40% plunge better. in terms of henl care stocks also driving higher. the big one to focus on is after the astragenica, it is outpacing the other drug makers on the board. let's speak to the managing director of clinical research. give us a sense of what you are watching in terms of the reopening and what you are seeing deciding which industries, which small businesses and factories they want to reopen first what do you make of where we now stand? >> i think, karen, the markets are going to be looking beyond

the lockdown of easing to take stock of the earnings recession. the argument at ts lombard have been propped up in this rally and by the evidence of scale we see that as simply a triage of pricing but it doesn't do anything to cut off or hit the earning or demand and we think that is a cautious stance. it is possible, however, to continue the opportunistic parts across the board in various

sectors. it is very difficult to see how you can pick out and discount the cash flows it is much more likely to be less discrime gnat moves and shorter waves on headline moves but i wouldn't expect outperformance >> i hear you on retesting the lows i know many wonder if that was it goldman sach changing their view saying that s&p may have touched that low down and may have seen more upside to year end. what do you make of that view that earnings in this quarter do not matter we start forecasting around 2021 now, doesn't it take out the potential for more down side

>> it comes down to a question of multiples my colleagues on the strategy side are very conservatively assuming that the market average pe multiple doesn't descend too far below the historic average despite the reality of a huge recession. even if you take in what are the circumstances a bullish view of multiples, you are still looking at a v at a fair value to well below the thousands. we know that in the crisis of 2008 where the first bear market bounce which was similar to what has happened in the last 10 days we think likewise before the final bottom is made and could

be the similar pattern to compare themselves with each other -- >> christopher >> i have to say we have a different view >> do you think the markets are woefully underprepared for what you call the third quarter calendar, ie, a new wave of infections of course, as you rightly point out, there could be more waves of infection coming later in the year >> it is not so much that it would be proposterous to say we know this or that. we can have a reasonable ground for supposing that investors should be cautious on timing

it is not that the economy will fail to restart because of something we know no one else will start that would be absurd it is reasonable to suggest that the quick and smooth restart scenario is not realistic. one reason is that you mentioned on the show a second ago before i joined you, these trials going on for potentially effective therapeutic drugs to be accessible and affordable. there is a lot of excess there the inevitability of second waves of infection the market should be thinking about or projecting forward is

that second wave of infection and how well it is dealt with -- >> christopher >> yes >> what are the other major ills in the global economy that this will bring to the floor as well. the four of us discussed many times before we knew what coronavirus was, there were other problems which other issues will come to the forea and create other problems there any way >> that's exactly the right way to look at it. this was annette etiface buildip and up that was already teetering and needed something to knock it over and was far more dramatic than anyone had ever seen which was a sudden stop to the global economy

the nasty side effects and that we would put on top is on the credit side perhaps starting with emerging markets. one feature of the post global financial world has been the buy side bubble. as central banks bumped out liquidity through the quantitative easing programs, the problem was that this was searching for yields all types of assets and emerging markets. now you have a mountain of a dollar denominating credit in the big emerging market countries which will be extremely precarious now there is one thing for some sub saharan african country on

two to three years ago quite another thing for the important country to run into trouble. we could think of turkey, a dramatic case or mexico which could have for example in the 1980s, systemic consequences we should be looking for serious traps and blow ups in this type of area. >> christopher, as a former british diplomat, you know your way around foreign power let me ask you relating to the kind of recovery we may have, if consumers start to lose confidence and let's be frank, neither president trump nor the eu or others have shown themselves in a good light when it comes to an

ta anticipating the damage. what do you see that doing to public compliance to health care issues and the likelihood we'll see a strong consumer rebound? >> on the one hand, i think it is very hazardous to predict public discontent will take one or another form. for example, general publics all over, certainly the developed world will look forward to an end to these restrictions and so-called lockdown and also a fear factor which will rehibity the normal consumer patterns, even if the lockdown were to be released and governments hoping

regenerate a normal activity the behavior responses of the general public could take a very contradictory form i'd agree with your premise that the confidence factor in government will be challenged. i would just add to what you suggested. that is comparison people are bound to look at neighbor x or neighbor y, which appears to have done better or worse and ask themselves why, why their own have not managed so well. that couldbe a strong politica factor that would need to be equated with the corridors of power. it could be an economic factor and companies looking that are saying we are not doing so well,

we'll need to keep our borders closed too you could get the feedback to the economic doc from the political and social perceptions. i have to throw that out there looking forward to the matter of speaking in coming months. >> thank you for joining us. managing director of political research there has been some breaking comment from the robert koch institute. in germany saying no clear sign the numbers are going down further. the number of cases are lower due to the easter break with less testing in germany, we've seen the death toll rising. 170 was the latest, up from 126.

the fewest number of cases reported 2,082 the number of new infections coming up, opec agrees to w chil output cuts but doubts of homu o will actually be removed from the market. more when we return. awesome internet.

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shares of norwegian air are plunging after the company plans to convert $4 billion of debt to equity the airlines plans to issue new shares to keep the business afloat after the company scrapp scrapped its 2020 earnings guidance chinese airlines fell 6% in march. reuters forecast a 14% drop and imports fell 0.9%. compared to an estimate of 9.5% fall of the import number. seeing significant improvements as china looks to rebound from the economic fallout adding difficulties posed by the

pandemic cannot be under estimated. the imf to provide immediate debt relief to 25 of the poorest states affected. announcing the first round of countries received grants to cover their debt for six months. the trust has around $500 million in resources after $185 million pledge from britain. oil prices are trading higher but the move continues to response of the record output response by opec plus. after four days of meetings commits to a cut of 900 million barrels in may followed by smaller reductions through to april 2022 some analysts are warning even though this record cut will not

match demand seeing the price on the screen, 31.55 on brent 32 on wti. > >> aing the total skcuts will be much higher. >> it is much bigger my country follows at 9.7. we are doing 1.3 to bring us back to the 8.5. the uee, this is as a result of our high production. uae is also coming about a million and i believe kuwait has made another announcement that they are coming down by about half a million more than what they were doing. >> more from prince's extensive

first interview on the oil cuts, you can head to cnbc.com reacting to the news of those record production cuts, it is a mixed bag bp falling back and shell reversing. gains in the likes of other energy stocks. let's get to ole hansen. i want to talk to you about some tweets you suggest that they had overplayed their hand? >> translato >> caller: i think they all did. no one could expect to see the dramatic slump we have seen

after falling to the u.s. and europe russia was getting up to pass on the market share clearly saudi arabia didn't either they potentially dropped down to the target area around 40 where we are not seeing this major slump. yesterday, they were caught off guard. this strong reaction was needed with an attempt to provide us. >> what we've been debating over asset classes in the duration risk if we cut so much on the production and the snap back and shortage we hear there is so much put into storage facilities simply stored at the low price. what does that mean in terms of

a glut >> the steep curve is built up to where the back end of the curve has recovered a little bit extra where the front is back to lower to where we were before the announcement that reflects the market that the foundation and recovery has been sowed the stories we have and that this will be such a long, drawn out affair with a return to normal to restart as soon as possible that will likely happen we are seeing extended lockdowns. what kind of traveling patterns are we going to see? are we going toget on a plane and do the usual traveling i don't think so i think this is a risk we could see the curve flatten.

some soon based on the uncertainty the back months will come down as well. >> you've seen the short-term demand will be more than supply. there is supply, demand and the amount of money people need to put into carbons at $25 a barrel, $30 a barrel, that investment is absolutely sided. are we storing for the medium where there is more supply than demand >> caller: absolutely. that is a risk we cannot avoid talking about. those we have seen quite dramatically the oil measures we keep while

we wait to get on the other side and put totentially seen before they were brought out slow oil needs to be found on a regular basis to offset the decaying world if we should see some ba bankruptcies in the u.s. shale industry that's where they can turn up the tap fairly quickly when the price allows it. >> i wanted to comment on shale. some think this is all a conspiracy to destroy u.s. shale. do you believe that? >> caller: i don't think so. i'm sure there is some frustration by the fact we are seeing market share handed over

to non-opec players. you cannot kill the u.s. oil shale industry you could only do that by keeping the prices this low for a long period of time but we will see it bounce we will see some bankruptcies in the short term trump was out talking about $20 million. that number can only be achieved with that industry suffering further losses we are seeing further cut backs. we are seeing the short term as soon as supply announces, we'll bounce back. >> seeing that conversation here, the head of strategy coming up on the show, the

race picks up speed as the who releases support of 70 potentially effective drugs.

welcome to "street signs," i'm karen tzo. >> it is a mixed bag the ftse 100 is in negative territory. leaders extend their lockdowns but begin to layout exit plans spain reopening a number of industries to revive its ailing economy. >> with numbers down today and past weeks, we are thinking about step by step that is important. step by step, going back to a new normal astra zenica starts a trial on a new drug adding $6 billion to the market group plans

>> amazon plans a hiring spree but also lifting restrictions on shipping of nonessential items >> u.s. bank stocks and investors eager to understand the impact of the virus. european stock market had a solid start after a long easter weekend. the support we saw coming from asia and particularly the chinese market after we saw the export number in march down 6.6% that was pause for these markets also eyeing the reopening across these country's early exit plans. the italian stock market

the strongest doing most of the heavy lifting is the german stock market the dax up and reversal with some disappointment around that opec plus deal not lifting the energy majors and those reversing about half a percent >> a quick look at yields and stability coming into the mix. we can see on german bund. positive on france, 1.69 on italy. fairly elevated level versus the rest on spain what you'll be witnessing over 2 million people have been diagnosed after cases doubled over the last two weeks alone. the u.s. and europe remain the epicenter. there has been a rise of imported cases to mainland china that have seen the highest level in five weeks.

in america, over 20,000 confirmed cases. >> president trump plan to reopen u.s. economy plans. made his views clear whether it would be individual state orz federal government >> the president of the united states calls the shots if we weren't here for the states, you would have had a problem like you've never seen before we backed them up. we did a job no one ever thought possible astrazeneca will begin a trial whether the drug calquence wi will help. three drug makers are issuing trials julianna, there have been so

many announcements from drug companies, what do you hear about the potential of one actually coming to market? >> in terms of the potential, there are certainly efforts ramping up for companies across the world. that list coming out showing 70 candidate vaccines are in development highlights how many different researchers are trying to find a vaccine. of those 70, only three are in clinical trials right now, which means they are being tested on humans the furthest along is by a chinese company that is in phase two trials phase one trials are being carried out by moderna and inovio beyond that, the others are in

preclinical trial mode, which means we are months and months away from that vaccine coming from astrazeneca and to bring the gap when that vaccine is available, companies are ramping up efforts to find treatments as well this is an existing drug, being used to treat adult leukemia we've had positive news overth weekend from remdesivir drug from gilead, they found a compassionate use that 58% of hospitalized patients saw improvement. one treatment that has had some negative news is chloroquine and

hydroxychloroquine, the two anti-malaria drug. a small amount of chloroquine was halted in brazil because of concerns it could have on the heart. there are some concerns out there the bottom line when we talk about vaccines and possible treatment is that it is too early. >> bringing in the medical professor at king's college. we've seen a lot of unknowns and exactly how it is spreading, why some have a mild dose and it is killing other people give us a sense of what you are working on you are using a technology app to try to track the virus. >> yes we launched the covid symptom tracker app, which is on every

mobil phone. we managed to get 2 million people in the uk to use it it is one of the fastest selling free health apps ever in europe. this has allowed us really to see a much wider range, which is reported in the media. this has given us a spectrum of symptoms that aren't recorded like a loss of taste and strong fatigue, so we are adding new symptoms we are able to track over time what's happening to the virus and the population in ways we can do just by looking at hospital data giving us a different picture. >> there has been many different

indications if you can conduct testing and take temperatures, use masks, there might be a way to fight the coronavirus to allow returning to normality what is interesting is the asymptomatic cases >> there is not much we can do about a sthese cases. in the uk, we had about 2 million people, we estimated extrapolating from the 400,000 that had symptoms to the uk population and similarly to the u.s. if we know that, say, 4% of the population is infected we know on top of that, the latest results in new york in

pregnant women suggested about eight times more time are a sympt asymptomatic that gives you an idea of how many people have already been infected and is expected to act as some form of buffer we would get to grips now not only with this small group of people in the hospital and how many people had been infected and we believe have some temporary immunity it is a shift into understanding the population that is really important. >> professor, in terms of the value, you described how this app would be able to track different symptoms and detect

where these vulnerable populations lie. creating meaningful conclusions that health care providers could use. >> so we pass on the data every day to the health authorities. that has been done in the uk and also at mass general in the u.s. we can tell really the same day that tell us how those rates are changing every day we are producing maps that give us an idea of what is changing every day. in this example, rates of symptoms went up for the first four days where people were closed together or maybe the incubation period was there.

over the next 10 or 11 days we've seen a decline of new symptoms we've seen where people didn't have any health problems they were recording that they were fit and well. they record this rate of new virus in the community this gives us a day by day account. it is telling us that lockdowns are working and we feed this to the government and it allows us to make those restrictions and when those can be used when those go back, we can see how quickly the rate is rising so we can try to balance that economy against health what we are seeing is two weeks before the hospital filled with customers. that's the problem >> thank you for joining us today. best of luck with the app and

tracking coronavirus julianna, we'll talk to you later on amazon has confirmed they will allow third paurty party sellers to ship non-essential items. creating 100,000 new positions in march in a bid to fulfill orders the five biggest banks record record low interest rates. claiming the bank would withstand extreme economicdown turn conditions. citigroup, bank of america and goldman sach report on wednesday. yesterday, closing lower for the

first time in five days. wells fargo will be speaking out today. tune in to that interview at 2100 cet our international senior credit analyst, i want to ask you about what we can expect this time around early reports suggest that the key factor is loan loss provisioning looking at banks holding to losses what are you expecting this time around >> caller: good morning. the cost of credit and cost of risk we've seen over the last few years that would be the last rate for the banks and would be around .08%. all of the banks already came forward saying this year with

the sense that the economy is in recession. to be fair, if we look back at history, the key strategy for american banks was around 2% i think is of course depends on how long the lockdown will continue it is fair to say at least 1.5%, 1.6% for this year, so very high level cost of credit >> the banks are now dealing with the zero interest rate policy there is a concern on how far that can go with the fed in negative territory what could be down the tack for monitory policy. >> caller: unlike the european or japanese banks, americaning

banks have gained interest income over the last three years. the fed up until 2018 has been on a hiking path the banks were able to actually earn positive money on the holdings of treasury, unlike french or german banks now, on the rate went to zero. this is going to be very significant head wind. for the u.s. bank. whether they'll go below that, we don't know because we don't have the precedent to some extend, the u.s. market doesn't really work with negative rates relaxing on the europe and what the fed announced last wreeek. as you know, all of the

corporate has been drawing on the credit facility provided by the banks. that has been an effect. the balance has ballooned. we think $350 billion, which is double on the long-range loan growth someone else with investors and the feds buying back, that could alleviate a little bit on the back >> i wanted to ask you whether w we are going to see clear differentiation between mortgage and investing banks? will that lessen the impact on those with market businesses >> yes you eventually will.

we see more diversified franchise and some development for bank of america. those have room to the expense as you say, there is some division may be suffering in the mortgage banking there could be a spike we know that q1 has been good in capital market strategy. in mid-february or march, there has been green chutes coming back so, yes, diversification in different businesses will be key factors. >> are european banks going to be staffed on performing across the board but not allowed to foreclose across the board i'm very worried about those

with those comments being pointed out. a large amount of the companies they'll provide credit to will not be profitable. >> exactly to some extend, the eurozone banks in the last 12 years have not done well. for them once again to be cutting costs. this is the silver liner so we see more emerging so the economy become even more challenging for those banks. for the american banks, they still have some room to cut expenses and on the other side of the coin, they need to remember that some banks like jp morgan are very optimized. so there is still room, yes,

there is not room to cut costs >> thank you for that. of course, goff working from home and steve outside the hospital u.s. futures before we go, you can see marching into the green. that's all for today's show, "worldwide exchange" is up next.

total authority. president trump flexing his federal muscles against the governors threatening to take the reopening of the u.s. economy into their own hands >> wall street bracing for earnings season and one expert said it could be twice as bad as 2008 >> deliver apps under fire for price gouging amid the pandemic. it is april 14, 2020 you ar