christine lagarde is supposed to reiterate her pledge to do everything she can. the euro area economy plunged into a record contraction, shrinking at an annualized rate of 3.8%. that reflects shutdowns aimed at containing the coronavirus and more demands for fiscal support from governments. global news 24 hours a day, on air and @quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. hurtado.ana this is bloomberg. tom: thanks so much. equities with a fractional left. ,acebook out with earnings microsoft with earnings, and apple later today in new york. in the bond space, short-term paper coming in with a vengeance. the u.s. two-year well under .20%. that is the number one barometer going through those bloomberg headlines we will see from christine lagarde. what do you see? francine: i am seeing a similar data check. a lot of the focus is on earnings and u.s. jobs. that is also happening today and a lot of focus is on what christine lagarde can say in terms of extra stimulus. the economy is in a holding pattern and we

that is also happening today and a lot of focus is on what christine lagarde can say in terms of extra stimulus. the economy is in a holding pattern and we got a look yesterday after encouraging news fauciach. -- which dr. said was encouraging, from gilead. a medication in treating covid-19. tom: joining us is marcus

has christine lagarde done enough? does she need to focus on stimulus once the recovery starts to take hold? obviously the ecb discussion today will be hopefully heavily , this isd and so far q1, nothing about q2 yet. it's just phenomenally bad. much worse than anyone had expected. to have that all go down between five and seven and a half going down is something that's quite remarkable. christine lagarde made the statement that she thought the euro zone growth year-over-year would be close to 15%, so that undoubtedly will set the stage for the discussion. dosense is the best they can in terms of headline numbers is from 750se the program two may be one at quarter. the rest -- one and a quarter. the rest will be small things and perhaps talk about the possibility of suspending the p and making a lot of general noises about being prepared to do a lot more if necessary and having the firepower to do more if necessary. that's where it's going to be. it's a very different central bank. , that'sery unified body not true the

christine lagarde saying there is still a lot of uncertainty about how far the euros in economy could fall this year. lagarde: given the uncertainty regarding the extent of the economic fallout, growth by ecb staffduced predict growth could fall between 5% and 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. christine lagarde talking a bit earlier on in the press conference. joining us on the phone is kit juckes. always appreciate your time. i am looking at the data out of the euro zone, and it is grim. the fastest contraction we have ever seen. we can show that on a chart we have here at bloomberg. enoughtion is, was it today, what was delivered by co.?tine lagarde and is it enough? think if you listen to the message, which is i will pre-everything i can think of and think of something new every time you come back, they still have a problem the fed doesn't have in the sense of the whole limit towards mutualization of , so and fiscal policy promising that you wou

as well as christine lagarde's press conference for the ecb.ity story right i want to point out a headline from bloomberg saying the saudi wealth fund is building a team to holland for global -- to hunt for global bargains. a lot of hedge funds doing the same thing. and the other areas of the market, we did wind up seeing a greatf with an btp euro-dollar a touch weaker pretty stable going into the press conference. the data in the u.s. is out. the number we are focusing on his initial jobless claims, coming in at 3.8 million, that is more than estimated yet sequentially we are following. if we have reached the peak, that is good thing, but we are still around 27 million unemployed. a check in on inflation rate the month on monthor down .1%. all in line with estimates. spending and income, personal spending down 7.5% and personal income down 2% during both of those not great as we continue to see the not great day to roll in. bloomberg's michael mckee joints me yet again. earlier when this we talked about a year of growth. is it weird that the d

a warning from christine lagarde, who said that gdp could fall as much as 15%.hey haveaid that perhaps done too little, too late and they are having a videoconference to try to figure out how to mitigate economic fallout from the outbreak. global news 24 hours per day online and on air, powered by journalists and analysts in more than 120 countries. this is bloomberg. vonnie: let's get back to earnings season in the economy more broadly, union pacific has the latest today with volume done by 25% over last year in the second quarter. ,oining us now is lance fritz the ceo of union pacific. congratulations on getting through a tough, tough quarter. your employees are classified as essential workers. the supply chain was at stake here. everything to grocery stores, hospitals, and so on. how many more employees do you think you will need to furlough or layoff? you have already had to furlough what, 15%? >> yes, we have. we had talked about a 15% reduction in the you -- in the workforce year-over-year. that was sequentially in the fourth quarter from last year. doing

speaking of inflation, christine lagarde, ecb president, has made a strong plea for inflation and urgedernments to get over their differences as they prepared a second round of -- for a second round of talks. the comments came in an op-ed published in newspapers across europe, a day after ministers failed to agree to a rescue package. saudi arabia's sovereign wealth fund has taken stakes worth $1 billion in european oil majors, including total. shares were bought on the open market, and the investment fund may buy more. no comment from the companies. powered by more than 2700 journalists and analysts in over 120 countries, this is bloomberg. nejra: thank you so much. global coronavirus cases top 1.5 million as germany hit a record one-day death toll earlier this morning. u.k. and new york had the same tragic milestone on wednesday. prime minister boris johnson remains in intensive care, but the chancellor says his condition is improving. wall street banks are warning of a $5 trillion hit to global growth. joining us is the ceo of unigestion. just, given what i outlined in terms of globa

it comes as christine lagarde risks the block could do to little too late. the euro area economy could shrink as much as 15%. in italy, the number of coronavirus recoveries has overtaken new infections for the first time. the news coming seven weeks into a nationwide lockdown. are -- there is a plan for gradual easing of containment measures. planningk., they are to ramp up testing. after weeks of criticism the government is falling behind. the telegraph is reporting boris johnson plans to returnafter to downing street as early as monday. president trump casting doubts on reports kim jong-un was in critical condition following surgery. monday, u.s. officials said he had been critical. south korea says he is conducting normal activity. coming up, how the world bank is recover fromnies the coronavirus. this is bloomberg. this is bloomberg daybreak: europe. we made it to friday. let's get a look at the risk radar. read on the screen and asia. the s&p 500. in futures point to a lower open. the 10 year yield slipping. dollar-yen, we are seeing commodity currencie

a lot of earnings and we have the european central bank and what christine lagarde has to say if she have extra measures given what they've done already, a look at what they say and what stimulus will mea

we continue to get lines across from christine lagarde.ing we would like see a bit more inflation. i'm not sure if that was tongue-in-cheek, but that's the kind of thing we have been hearing for a solid eight years now. beenization as it has dashed globalization as it has been will be questioned according to christine lagarde. if you are watching the currency , kristie lagarde is saying she is not unhappy with the level of the euro. she finds the movement to be stable. a lot coming out of the ecb right now. i thought it was probably the most interesting thing we learned so far. she said that each month of a 3% of gdp,osts 2- referring to the euro area, per month. is saying that debt has to be paid back gradually. of course, everyone from average consumers to large businesses are amassing debt right now. we are minutes away from the open. up next, the rally that started the week has hit a wall. although, we do see futures higher and we do see u.s. futures moving higher as well. maybe that wall is mobile. discuss the various bets unwinding a

christine lagarde coming out with some headlines. the ecb will do everything necessary within its mandate, and they are accepting further requests for euro swap lines. fromgine that extends health sharing of information and resources as well as economic. tom: i am glad you bring it up. this is sort of a daily basis, and one of the tranches of alphabet soup of assistance from the united states of government, we will run out of that pot of money today or tomorrow. the speed of change we see including madame lagarde's comments, extraordinary. one of the most qualified people i know to link in the profit atlosion, steven wieting citigroup working in strategy and linking profit and stock market performance into the greater economy. thank you for joining us. how much have you had to change your outlook? how far away from january 31 are you now? steven: very, very far away. we are expecting the u.s. economy to contract more than 4% in 2020, and we think that the current quarter, the second quarter -- if you think about it would fall about 1

what was seen from christine lagarde. euro-dollar now in positive territory, $1.0953.p by 14%. --percentage tombs percentage terms, a fairly big move. vonnie: here in the u.s., we are off our lows at the session, but even the nasdaq turned higher for a moment. broadly speaking, we are a bit risk off. given yesterday's bounce, it is probably not something

a warning from european central bank president christine lagarde.s the block's gdp could fall as much as 15%. she also said they have done too little, too late. european leaders are having a video conference, trying to figure out how to mitigate the economic fallout from the coronavirus outbreak. as many as half of the people killed in europe were residents in long-term care facilities, according to the world health thenization, which says numbers show a deeply troubling picture of the vulnerability of older people in care. the agency director also said care facility workers are underpaid, underequipped, and under protected from infection. 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. i'm mark crumpton. this is bloomberg. david: georgia is going to open back up some of its businesses as of tomorrow, according to governor kemp. in the meantime, the house of representatives is going to vote on 484 billion dollars in spending to help the economy. we are joine

christine lagarde has warned of doing too little too late.tral bank is increasingly expected to step up support for the economy. one in four economists surveyed by bloomberg now says the ecb could boost emergency bond buying as early as next week. for more, let's bring into the conversation maria who joins us from brussels. your thoughts on the eu 27 inching closer and the sense that yes, something was signed, but the big decisions around just how much debt neutralization there should be or burden sharing around the bloc once again kicked down the road. >> exactly. the reality is we did not really get anything on paper yesterday. toy did not really commit anything. there are still questions on how big the economic stimulus should be and what shape it should take. made --s progress angela merkel conceded -- i think this is probably a first -- in which she said the economic response will have to be huge. most crucially, the italians had a very constructive tone yesterday. saidtalian prime minister he is seeing good progress. the data he pointed

ecb president christine lagarde cautioning that gdp could drop as much as 15%.as well as the business confidence is in a freefall, including in germany, where consumer sentiment has dropped to a record low as the coronavirus leads to europe's highest deaths in decades. singapore's covid-19 cases continue to spike. is for a fourth consecutive day. half of the six vaccines in the human trial stage are in china, according to the world health organization. the organization saying there's a total of 83 vaccines and the element around the world. in new jersey, the coronavirus has hit hard in nursing homes. the who is saying that up to half of the people killed by the coronavirus in europe are seniors and long-term care facilities. you are watching "bloomberg markets." this is bloomberg. ♪ ♪ we have been discussing, data on both sides of the atlantic really grim. pmi data, horrible on both sides of the atlantic. claims data not good. let's get a sense of where this leads us and talk a bit about the market response to all of this as well. ira epstein is joining us now o

high.ro is data shows the region suffered the worst three-month contraction in decades, with christine lagarde saying the euro zone could shrink as much as 15% during the current period and 12% over the full-year. mitigated the eu must its approach the crisis. >> euro area real gdp decreased by 3.8% quarter on quarter, revealing the impact of the lockdown measures in the final weeks of the quarter. the shutdown term of economic activity in april suggests the impact is likely to be even more severe in the second quarter. western europe is seeing the rate of viruses decline -- virus infections decline. france rose at the slowest pace in four days. france plans to continue easing its lockdown from may 11, with some shops being allowed to reopen, although cafes and bars will remain closed. japan is ready to extend the virus a state of emergency, even as other nations prepare to lift restrictions. the nikkei news says restrictions could be pushed forward. infections in indonesia have continued to rise and top 10,000, despite lockdowns around jakarta. the death toll is now approaching 800. still ahe

more successful in the states, but where they are missing and where christine lagarde and the central bank will be looking for more for government and from the european position is the stimulus. once we start to see economies slowly moving out of lockdown as we now are, what will be there to stimulate economies as ,pposed to keeping them on hold which is effectively what they've been doing for this period of lockdown good so much uncertainty about the path of that lockdown from here because germany is starting to see a push up infections. other countries are strung to see if they can't follow germany's footsteps. david: to bring it back to united states, we heard from the fed and jay powell yesterday. one of the things he said that over the medium term, we have challenges. he said there might be longer-term damage. we have had the fiscal stimulus. how can we learn from the u.s. experience as it applies to europe? seen more we have people join the on employment roles and increase that support for people -- we have more jobless claim numbers today from the u.s. that is the u.s. way. the

christine lagarde coming out with her own "whatever it takes" statement.osing a little bit of steam here. japan now declaring a full on state of emergency. the small business administration loans ran out of funding today as well, so those are all on the market. morgan stanley down by about 0.6%. let's get more into morgan stanley. wealth management revenue missing in the first quarter. joining me with more is bloomberg's sonali basak, and marty mosby, vining-sparks director of bank and equity strategies. walk me through what we are learning on the media call. sonali: then come the questions. we see from the ceo, who spoke to my colleague, that trading revenues are down in april. tradingtion is if those numbers are sustainable, not to mention the percentage increase we saw was a little less than what there was at jp morgan in equities and ficc, and that goldman sachs. the market share question will also come into play in that analyst call. lending was up, deposits were up, but what is the expectation moving forward? morgan stanley did say in their release t

attention turns to christine lagarde.acebook surges as advertising revenue holds up amid the pandemic. socgen.hear from later, shell ceo. don't miss it. manus: good morning to you. 1.7 3 billion people on facebook during covid-19. socgen doing more than being on facebook. it loses 326 million euros in the first quarter. the global banking division, revenue down. down by 27%. the revenue at the bank is down by 16%. you have a net loss in terms of guidance, expressing their guidance for the cost of risk in basis points. they are saying 70 basis points in 2020. the underlying return on equity is a negative number, -0.5%. loss revenues dropped by 16%. global banking revenues crumbled by 27%. those are the top lines. we talked -- we talked to the societe generale ceo. we -- the-- nejra: virus clouding the future for the chemicals company. what we are getting right now is first quarter adjusted even at 1.6 4 billion euros. that's more than we have got there. we have the withdrawals of the outlook for the 2020 business year. tha

italy and the unicredit mandate and all, but i really think on a monday it is time to focus on christine lagardewhat are her degrees of freedom right now in the political economics she faces? how constrained is madame lagarde? think, tom, that you probably have a central bank with amazingly free hands at this stage. and you have seen it through the extraordinary programs that they invented on the spot. we were all, including myself, screaming for the need for whatever it takes, and she did not like it and it was very clear there was some big hangover about this, and then comes the that program, and after they announced the 750 tpp program, where they buy everything, and the stock investment grade, it gives them the folks ability to buy whatever they want in this space. so they have a letter freedom now. fascinating tois me is jay powell, chairman powell, as a secretary, munition, and he has a secretary munition who says to republican senators -- secretary mnuchin that i'm going to speak with secretary pelosi. lagarde'sistine secretary mnuchin? place youe is not one call up. the good news is in s

christine lagarde earlier said the eurozone could contract by as much as 15% this year that gives you the idea of how pessimistic she is about the european outlook we are getting hints that they could upgrade or enlarge their current pep program, which is the pandemic emergency program, they have set up last month. that's highly questionable for today. they most likely will have to increase over the course of the year if you look at where they stand already, the program, the $1.1 trillion would run out by autumn of this year which might be too early an enlargement is very likely. also, what is interesting as you were pointing out is whether we get details of what they are willing to buy will it be also junk bonds taking on bulk and high yields in the corporate world what will it be? it seems like many corporates, the debt markets are actually closed we have been hearing from many markets currently. it's super difficult given the uncertainties of the outlook that will be one area of questioning and potential answers from madam lagarde of course, she will be requested of how much yield

of course we see that there is nothing showing up on the euro bond from christine lagarde.ng the economy and how do you think christine lagarde and the ecb have been proceeding >> of course the economy is shrinking and this is the consequence of the confinement as we say, so nothing is surprising and we have to expect even more contraction and i would say everywhere, frankly speaking, perhaps from the asian countries. second remark, the ecb has confirmed its own total determination. i was recomputing what christine was saying with regards to the purchase of securities and until the end of the year, 1 trillion euro purchase program. there was total flexibility in the use of the pandemic emergency purchase program, which this flexibility is very, very important in the president juncture and there has been also a number of additional elements that were also important, in particular the famous targeted long-term refinancing, which is now at the level of minus 1% for new lending, the interest rates that the banks are refinancing with last point, the attitude of the governments a

ecb president christine lagarde warrant the economy could shrink 12% this year.rged european politicians to provide more fiscal support. 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. i'm mark crumpton. this is bloomberg. amanda: live from toronto, i'm amanda lang. shery: i'm shery ahn in new york.. we are joined by our bloomberg and bnn bloomberg audiences. let's get you started with a quick check on how markets are trading this afternoon session. u.s. stocks under some pressure after falling from that seven-week high. the s&p 500 being led lower by materials and financials. we had some abysmal economic data again, jobless claims coming in higher than expected. this, of course, slowing, but elevated. the nasdaq being boosted by strong results from microsoft, facebook, and tesla. sentimentve some coming from the fed on their desire to expand the main street lending program. we see boeing gaining ground a little bit, this after they said they would be selling $25 billion

christine lagarde could step up the asset purchasing.recasting a loss in the second quarter as revenues slump because more than two thirds of the german athletic company's stores are closed, due to the covid-19 pandemic. thank you very much for joining per.kas i want to talk about the rate you are getting through cash. first quarter you got through 1.4 billion euros of cash. do you expect things to worsen in the second quarter? how much will you need? >> on our balance sheet we have close to -- we don't believe we will have a cash crunch moving forward. the question everyone is asking is how quick will the recovery come. ,hina has been a good indicator particularly in the month of march on retail. standpoint, it will be a very difficult year. you told us previously in our last interview your balance sheet looks good as well. the work youdue to have been doing on it and that you did last year. is there any reason you would need to tap state loan programs for help? we did that as you saw by the end of march. the frontrunner was unicredit.

he thinks christine lagarde will work to keep italian yields low.te by minute with market debt from bank america, blackrock and standard chartered. up next, facebook bounces in the post market trade as first quarter revenue holds up. we'll hear our interview with the company's c.f.o. this is bloomberg. ♪ matt: welcome back to the european open. we are 41 minutes into the session right now. looking at a mixed market. the oil stocks have come down and really weighed on some of the indexes. for example, royal dutch shell. b.p. a very heavyweight on the ftse. it has dipped sbune do negative territory. the dax is threading water now and the cac is .2% up. -- .02%. socgen traders with wiped out by the market volatility due to pandemic. trading slump 99% to nine million euros. e banks posted a net loss of 326 million. shell has cut its for the first time since the second world war. the twirts cut will shock investors who relied on shell's generous returns for decades. the decision underscores the gloomy outlook for the industry this year. net income was do

charge of the international monetary fund for only 5 months she took over from the french woman christine lagarde 5 months ago but she has a great deal of experience she's a bold garion who previously was a european commissioner now she is showing i think the enormity of this crisis remember that her organization the international monetary fund was set up along with the world bank the so-called bretton woods organization set up the brushwood conference at the end of world war 2 to try and get the world's economy out of world war 2 well she's saying this is an even tougher task certainly much greater than the recession of 20082009 so she's i think showing the scale of the problem and in that last stance i think she's showing where she's most worried which is the developing economies of the world particularly in the end in our stance are focusing on africa a place she said economically that showed so much momentum in the last few years but momentum that could be seriously set back. what we're seeing from this virus what we see at these world health organization press conference is a daily update of

and, again, christine lagarde also mentioned that the bad numbers, they are just starting to come.d, the first three months — these numbers are forjanuary, february and march. we know we didn't go into lockdown until march, so what you're actually looking at is just a few weeks in march is what has caused this economic carnage. economic carnage indeed. 0ur economic carnage indeed. our thanks to aaron there. here's another way to visualise the impact coronavirus lockdowns have had on some of the world's largest economies. the international energy agency is forecasting a 6% drop in energy demand for the year, which would be the steepest fall in more than 70 years. and they predict global carbon dioxide emissions will fall by a record 8%. but the head of the iea, fatih birol, adds... to give you an idea of the scale of the hit to the us economy, let's take a look at the food supply there. this is an aerial photograph of a queue for a food bank in san antonio, texas, two weeks ago. at that time, unemployment benefit claims were about to rise above 20 million. and think about it, they a

christine lagarde says the ecb governing council has never discussed the issue of helicopter money.an eu parliament said the eurohas area headline inflation may fall considerably in oil prices. they have never even mentioned. apparently, they have never discussed or brought up the issue of helicopter money. they have never discussed it. matt: why wouldn't she just talk about it? anna: she has no view from the ecb. let's get the thoughts of peter fitzgerald. your thoughts on helicopter money, whether the ecb should go down that route. is that needed? >> first of all, the ecb and the eurozone is anymore difficult situation than pretty much any other economy. they have control over monetary policy. you can see the flexibility of the bank of england. whether that is pure helicopter money or not is something for economists to debate. you have helicopter money and versions of it in the u.s. and in japan. the euro zone is in a very difficult place. where you would like to see the mutual is asian of debt across europe. if you think about the real risk and a number of people have said this,

christine lagarde has been saying given the high uncertainty surrounding the ultimate extent of the economy fallout. growth scenarios produced by the star suggests that your area g.d.p. could fall by between 5 and 12 percent this year. depending crucially on the duration of the containment measures and the success of policies to mitigate the economy consequences for businesses and workers. and the economic worries clearly being felt here in germany too the economy here is going to shrink considerably in this calendar year more than 6 percent and although ministers say they expect the economy to come roaring back in 2021 that's based on projections which infer that they will not be a 2nd wave of coronavirus in this country and while they can't guarantee that ministers angle americal and the leaders of the states of this federal republic are trying to work out what their next step should be how to help the economy more was not allowing coronavirus to flare up again. still to come. during the age of the corona virus how the pandemic has hit an ancient tradition. i know there are plenty more ra

what can we expect from christine lagarde? this is bloomberg. ♪ this is "daybreak: europe ."ng for italian bonds as investors are counting on the european central bank to boost the access -- the asset purchase program this week. policylure to deliver support is likely to see them continue the worst losing streak this year. it kept the rating two notches above junk on friday but the risk of downgrading still hangs above the debt. klaus baader from societe generale is still with us. increaseee the ecb bond purchases this week? klaus: i doubt it. the ecb has just very recently come up with some very significant programs. the pandemic purchase program, that has a volume of 750 billion, which is absolutely enormous. of course, we think that in time , that program is quite likely to be scaled up. ofre were of course a lot signs of relief about the absence of a downgrade for italian debt. nowhere is that sign of relief going to be louder than at the ecb. we have seen some compression in the spread. the fear of fragmentation, which is one of the big fears that haunt the ecb, it has d

christine lagarde saying governments must support each other.as been pointing out that economic and financial linkages means no country can avoid collateral damage because something else is happening or somewhere off austin the block is suffering. italy is among governments which include potential use of credit lines for the year areas, bailout fund, as well as the wording of any joint name and as themas the we also have driven by divisions in the sense that the dutch and german are very much against a joint test plan. coronavirus, whereas italy, spain, and france, are in favor of such a thing, so those divisions are continued. we have had these meetings taking place a bit later between european finance ministers and the hope is there will be a united front. rishaad salamat at they are with the latest out of europe. coming up next, tokyo and the areas in state of emergency. half of the japanese economy. what does that mean for japan in the long run? kobayashi joins us for that discussion. this is bloomberg. ♪ ♪ shery: tokyo and six other prefect

will hearoubt we something similar from christine lagarde. becomes how much more credit risk to central banks need to take on? europe has been more aggressive than the u.s.. the ecb has been buying corporate bonds for a long time as part of their original qe program in 2012 to 2013. that will continue. what we could see from them are more tweaks to their program. they have sufficient dollar amount for their various pet programs. that will run out by the end of the year. there are other talks about fiscal agents in europe, the eu providing more support for european economies. that will interact with monetary policy. christine lagarde will talk about the need for the eu to step up with more fiscal policy and the ecb is ready to support that commitment. it is about supporting the commitment to increased economic -- supporting economies down the road, and they will increase programs as necessary to achieve those objectives. alongside that, it was good news on friday. peripherals doing better. italy and greece not downgraded by the rating agencies

christine lagarde reiterating her call for more physical help because central banks are struggling. is the only game in town. is one of the long-term indications of the fed controlling the u.s. curve and asset prices, what does that mean for foreign exchange? george: you do have an unprecedented situation because there is no historic precedent. on one hand, you have one of the largest gdp drops and economic contractions in history. on the other hand, you have extreme amounts of government and central-bank intervention, central banks lending to the entire economy. there is a huge debate that will eventually emerge in terms of whether all of this is inflationary or disinflationary. we sit in the disinflationary going on is at is global liquidity trap. the private saving rate will have to rise aggressively. if you look at what happened across previous pandemics, the private sector started saving a lot more because of all the uncertainty and central-bank actions are not enough to shift us away from this japan equilibrium. what i recall the situation is basically a zombie market where ce

michael: it will be an interesting test of christine lagarde because she is so new in the job, whethershe wants to do something like jay powell and come out with all guns blazing and do as much as he can write up front as the fed did, or whether they want to wait and see if they get stuck with what the eu leaders finally make a decision on in there bail package. package.re bailout they could buy additional bonds in the high-yield category. the other is dispensing with the p so that they could buy more of a particular economy's bonds. on that one, they may want to wait until the eu leaders decide because if everyone agrees to go into an esm program, those who need it like italy, that opens to door to outright monetary transactions that enables the ecb to buy whatever they want without worrying about the capital key. some tough decisions for the governing council and for madam lagarde. vonnie: michael mckee, thank you so much. we will be speaking to you again a little later on. guy: what have you got coming up? we are going to speak to hans fist berg, this -- to hans vestberg, the ceo of

until now, christine lagarde was doing all the heavy lifting.ting that we vis-a-vis spain and its outlook -- data that we are getting ,is-a-vis spain and its outlook cases rising to 146,000. the total number of deaths have 13,000, 757000 from deaths in the last 24 hours. spain gives hope that measures that have been taken slow the virus down, according to the world health organization, which has faced criticism from president trump. give us a summary of what is happening in europe, what is working and what is not? ,aria: when you look at italy the situation appears to have been contained and spain there is a lag. europe is not just an economic crisis. seeingin and italy hundreds of people die a day, this has an emotional impact. it is having an impact on the psyche of the country. on long can this lockdown go and how long can we keep our economy shot? the longer we do it, the more damage will be done to these countries. they are at higher debt and the economies are not growing, and this will get bigger as long as the lockdown get suspended. at w

a little bit of an about-face from christine lagarde.poke the market by not necessarily being as hawkish as other central bank president had been. today, chief sounded more in line with what we had been hearing. >> they disappointed a bit. the market was looking for some expansion on their portfolios, buying both government debt -- that did not come. they tried to offset it by making lending attractive. generally what you are seeing is the fed and congress kind of behaving as if they want to do more than is needed. it not hurt the euro, but it did hurt other asset markets. scarlet: we saw european banks in particular. what exactly is the ecb holding off for? as if they want to hold their fire and wait for the right moment to unleash their firepower. moven: we think they will next month. courterman constitutional is going to rule on certain programs of their legality. the, it is not clear that ecb itself, and the government and counsel, is convinced you have to through the kitchen sink in. obviously, when you look at the fiscal authoritie

christine lagarde renewed her plea for a strong physical response to the coronavirus.urging governments to get over their differences as they prepare for a second round of talks. her comments were in an op ed published in newspapers across europe, day after finance ministers failed to agree on a rescue package. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. coming up, do not miss our exclusive interview with the ubs ceo. that's after 9:30 a.m. u.k. time. this is bloomberg. ♪ nejra: good morning from london. this is bloomberg "daybreak: europe." thes get a quick check on market action. green on the screen for forte in asia. hard to get a read on how the u.s. equity market will open. .10%, dow just futures leading ever so slightly. the s&p 500 technically in a bull market. european futures in the green, up more than 1%. the 10 year yield slipping three basis points and oil on the front foot ahead of the opec meeting. let's get more with sheila patel from goldman sachs asset

and christine lagarde has said members cannot avoid economic fallout if one suffers. trying to rally the troops and get them to act in unison. what does the recovery look like if they squabble and drag out the response to the crisis? i am optimistic the squabbling will be short-lived. there is some hope that will be the case. what kind oftate recovery europe sees, just as it will every economy. so i would imagine that we will coming fromtimulus europe. if not, what we could see is the ecb step in. this might seem like an outlandish idea, but what we have seen time and time again is in an absence of fiscal stimulus from governments, central banks have stepped in. that was apparent during the global financial crisis. we could see it happen again. exploring anhe ecb experimental tool which could simulate fiscal stimulus. scarlet: relying on the central bank. the invesco chief global market strategist, thank you for your time. that does it for the closing bell. what did you miss is up next, where we will look at the impact of the coronavirus on higher education. this is b

we're going to continue to pay attention to christine lagarde at the conference.ges on the ecb side not much the big question everybody is going to be asking themselves is is there going to be a euro bond that will solidify the notion of all countries sharing on the credit quality of the best credit of the european union that is back to you. >> steve liesman joins us now. rejoins us stevewith more hi, again. >> reporter: hey, good morning, joe. i think one of the things you can watch here is now the insured unemployment rate. what this is is a percentage of those with continuing claims, those who are eligible for it. it is now at an historic 12.4% proxy not bad for the unemployment rate and where it may be going it's a week behind so there's still more catchup to do looking at the states, many of the states individually are actually down. a couple of the ones that are up i'll give you here real quickly. washington state was up. michigan looks like it was up again big time here. let me just look at this no, sorry, that was down michigan was down. new york, i believ

christine lagarde is very vocal on that. isn't what is good for one good for all? germany recognize this? that is not good for europe as a whole unless it is taken on by everybody. why can't germany just come around? i think there is a lot of involvement in this. particularly inside angela ,erkel's party, quite frankly there is not much fiscal sm left under this. but i do think that the germans .nd the dutch that opens the way for a more generalized eurobond, which is a path they don't want to take. . i personally believe that is the wrong take on this crisis. i believe what they should do, and possibly where we are going to end up is a more specific type of response, which will see a degree of fiscal mutualization, thereby setting the precedent that europe can actually, when it has a shared crisis, a shared experience like coronavirus, come up with a joint response. also in fiscal terms, but this create the past and work centralized debt mutualization. i think the word bond will probably have to be removed as well. forie: jacob, thank you your thoughts this mornin

the federal reserve to do all of the heavy .ifting with a a situation change in position by christine lagarde and the massive stimulus they administered. the european governments are at a disadvantage. there's no common bond for the entire region. the german government has agreed to increase the amount of stimulus, it is not clear that countries ge would be able to increase their spending and have central support for that taking place. so i see that stop and go, and i don't see progress in a common front today as i would've wished. alix: i'm sure guy will have questions on that, too. do you expect them to start buying things like junk bonds or mortgagesd pay for that mortgage servicers are getting hurt on his people don't pay their mortgages? i talked to dan tarullo, who used to work at the fed. he said we could see a doubling of the fed balance sheet. what do you think? komal: i think the fed balance sheet is going increase substantially. in terms of high-yield bond purchase, they are probably going to buy a basket. clearly they can't pay favorite -- they can't play favorites, so probably us

christine lagarde said policymakers are committed to helping the euro area and are ready to increase asset purchase program as much and for as long as required. the european union says it will reshape its next trillion euro budget to focus on the virus and funnel much of its spending in the immediate future. the commission president says the new seven year plan due in january will be "the mothership of recovery and must be different to what had originally been imagined." she said the budget must be frontloaded to power investment in the recent years. the philippines cut its rate as the virus upends the economy. the governor lowered the rate 50 ahead of the banks next meeting. the key rate is now at its lowest since they adopted and interest-rate corridor system in 2016. shery: argentina is asking foreign bondholders to accept a sharp haircut as the government tries to move its finances to a sustainable path. investors are urged to take a three-year moratorium on payment and a 62% cut on the interest they are owed. restructure overseas debt is part of efforts to support the economy am

well, it was not enough to force through a deal, and it comes as ecb president christine lagarde warnsng too little, too late. the central bank thanks the euro shrink this could year as much as 15%. president donald trump casting doubts on reports kim jong-un was in critical condition following injury, but he did not give any more corrected on monday, officials say the leader of north korea was in critical condition after cardiovascular surgery. south korea says kim is conducting, quote, "normal activities." citing, quote, "significant economic uncertainty," caused by the coronavirus pandemic. optimistic quarter sales targets, but intel's outlook fell below estimates. 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 viviana hurtado. this is bloomberg. francine? francine: viviana, thank you so much. now let's focus on the german economy, and we had that ifo institute at the top. if you look at pmi's for the month of april, they actually plunged to 17.1, way below economists' forecast and

christine lagarde has been saying given the high uncertainty surrounding the ultimate extent of the economy fallout. grows scenarios produced by. star suggests that your area g.d.p. could fall by between 5 and 12 percent this year. depending crucially on the duration of the containment measures and the success of policies to mitigate the economy consequences for businesses and workers. and the economic woe is clearly being felt here in germany too the economy here is going to shrink considerably in this calendar year more than 6 percent and although ministers say they expect the economy to come roaring back in 2021 that's based on projections which infer that there will not be a 2nd wave of coronavirus in this country and while they can't guarantee that ministers angle americal and the leaders of the states of this federal republic are trying to work out what their next step should be how to help the economy more was not allowing coronavirus to flare up again there are some positive signs from spain which has recorded its lowest daily increase in new cases since a state of emergency was dec

yes and that's the that's pretty much what the head of the european central bank christine lagarde has been saying in the last few minutes in a news conference referring to all those figures you're laying out there sammy and saying what the e.c.b. is doing to try to reduce the impact of the coronavirus on economies around the the eurozone but the reality is there's only so much they can do we know it's the e.u. as a whole germany also have put in place the measures they think that can help to ride through the storm as it were that the pandemic represents and they say here in berlin at least they say we expect the economy to roar back in 2021 but of course that's based on projections that's based on them inferring that they will not be a 2nd wave of infection or indeed a 3rd wave of infection which would force them to put in stringent lockdowns again here in berlin right now angela merkel is chatting to the different prime ministers of the 16 states of the federal republic most of whom want her want the government here to allow much greater easing of restrictions economically and yet th

christine lagarde said policymakers are committed to helping the euro area and are ready to increase the asset purchase program as much and for as long as is required. the world's top oil producers open to further output cuts beyond what was agreed in this week's opec-plus deal. saudi arabia and russia issued a joint statement saying they are watching the market closely and will take measures deemed necessary. crude plunged or than 10% on sundays announcement they would nearlylobal out but by 10 million barrels a day. 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. i am karina mitchell. this is bloomberg. rish? rishaad: what we have coming up on bloomberg markets, how hong kong has been bearing out with what has been going on. is it recovering? it was already reeling from months of antigovernment protest. jim thompson joining us in about 20 minutes. indian the next hour, aviation having a tough time of it. we have sanjiv kapoor who had leadership roles at many companies. he will look at the s

ecb president christine lagarde said governments have done too little to stem the virus, and what theyintroduced has been too late. u.s. cases rose at the slowest pace in three weeks. spain reported the most fatalities in a week. >> the public must understand understandablys rying to release sasol by -- societies and perspective economies. newe is no fast-track to normal. karina: in the u.s., fallout is pushing on up limit to the levels last seen since the great depression. almost 4.5 million applied for benefits last week, taking the total to more than 26 million cents mid march. the statistics are raising the debate over when and how states might ease the lockdown. japanese inflation slowed again last month. something consumer spending amid the coronavirus -- slumping consumer spending amid the coronavirus. cpi on fresh fruit slowing from 6/10 in february with energy prices accounting for much of the decline. inflation has slowed two months running. even bigger falls seen in the weeks ahead. the coronavirus hit hollywood. film production collapsed from 1000 shoots in february to zero

alix: i wonder how much of that will then depend on what christine lagarde and jay powell say this week. can they basically keep the volatility curve flat? michael: i think they can. they probably won't say a whole lot. that may be enough for traders at this point because the real focus is on the virus curve, and the fact that some countries in europe in particular are starting to talk about opening. we are supposed to get plans from spain and perhaps france today. that will keep people feeling a little bit better about the outlook. the fed may be giving us more guidance about how long it intends to keep interest rates low, although it may not be in their best interest to be too specific yet. the ecb could perhaps increase lending program, but central banks have done so much so far that it doesn't appear they need to do a whole lot more to keep the market satisfied for right now, until we have a clearer picture of what is happening and where we are going. alix: before we leave off oil for a second, to your world, this is obviously going to be very difficult for some of the gulf states.

ecb president christine lagarde repeating her call for a strong fiscal response. she said it is a great idea when asked about the french plan for a european union recovery fund. we will see if they get anywhere on that. the first $250., billion that senate republicans want to add to the small business lending program. they would like a vote today by unanimous consent. democrats say that may not be possible because some members, including republicans, would object. they want more money for hospitals, more money in the package for almost bankrupt states and cities spending everything they've got on this program. they say we've got a $350 billion program now. $100 billion of it has been committed, but none of it has gone out the door, so we've got time. we can negotiate. we shall see. finally, jobless claims, 8:30 this morning. going to be another staggering number. the consensus, 5.5 million. but the high is over 7 million, in part because of some of the biggest states have had relatively small claims as a percentage of their labor force, suggesting we've had proces