tom: it is inside baseball on bloomberg on this friday with david bloom with hsbc. ou parse poland and hungary versus europe? david: poland is an interesting one. they did something fundamental and different cutting rates aggressively. the e.u. bowl comes through -- upl comes through splashing 750 billion in the fund. that is good for these currencies so it is a bit of a topsy-turvy. we think poland will be under pressure. we are talking game changers every day on everything. normally we get a game changer once a year. poland comes 40 basis points, boom, in your face yesterday. where did that come from? is thepsy-turvy statement that david bloom gives you when he doesn't really have a call. [laughter] francine: i think it is cfa level three. tom: it is. francine: if you look at what underpins the dollar now, how do you deal with trade worries, china, and huge unemployment figures in the u.s. go into that? david: we think a currency is made up of three dynamics -- cyclical, structural, and political. cyclical is out the window. you cannot really drive them much lower,

david bloom is our guest this morning. kind of scale up you expect from the bank of england. and is sterling already pricing that scale up? david: i think it's far as pricing in, as i indicated example, new zealand, the u.k. talking about theseu can't just trade one at a time. what really is happening for the moment, the relationship to risk. i think the impact at the moment on sterling is incredibly limited. it doesn't matter what you do practically. what does matter, if you come out of this, if you have a u-shape, you more buying power. you keep pushing, keep pushing. economy that does not really have massive fiscal firepower. for four years, another 7.5% of gdp set aside. point, sol starting that is the issue. i think the monetary responses are maxing themselves out. i don't think these negative rates matter. it is not a demand problem, it is a supply problem. that is why the fiscal side will push hard. those with firepower will do the best. nejra: on that fiscal point, and your note, you say that the euro will not fare

in our community get them wanted daily business planting trees is more than a symbolic act for david bloom the children have learned a lot about the crucial role as the trees play to provide shade to protect rivers and soil and play a vital role in taming the health of our environment. well at the time when our lives overshadowed by the mounting crisis their commitment. if we can manage to raise awareness of environmental issues in children then there is hope for real change the crisis can also be an. here in company change is already underway ever since the lockdown was imposed it's been absolved there has been improved air quality around the city some changes will probably be very fast but could be adopted for good it is a good buy for me. here in kampala. thank you sandra i'll bring about change is our mission here. i'm music is one way of making it happen i'll leave you with a song for mccain young clean up initiative and joy. for environment i melt from lagos nigeria see you next time about 2 churches. such as financial. aid you mean just to get tripped down. from the mike. in the fil

hsbc's david bloom lends his voice to the people cautioning a quick recovery. futures pointing down. the cac trade is an hour away. these are your top headlines from the bloomberg terminal. most improved player. president trump softens his criticism of jerome powell but the two disagree when it comes to negative rates. traders price the fed going subzero early next yeek. italy doubles down the government passes a much delayed 55 billion euro stem luis package but is it enough? watch the b.p. trade today. and america first. or is it americans first? sanofi says the u.s. will be first to get its coronavirus vaccine. it took the most risks in terms of investments. we'll speak with germany's merck at 8:30 u.k. too many. we're just an hour away from the start of cash trading in europe. futures are pointing lower. 1% drops on the major equity indexes. here you can see ftse futures a little bit worse than the continental indexes. take a look also at the half percent or last drops that we see in u.s. futures after big losses yesterday. u.s. markets fell to a three-week

on how much weaker you do see the euro from here because i was thinking -- i was speaking with david bloombc and from their perspective, they believe investors do not seem to be pricing in the risk of a euro breakup, for example. it is not so much euro breakup. the resolve is as strong as ever which means it could dampen growth in the longer term as they navigate bringing the region together given the disparity from the coronavirus linked cases versus economic recovery. breakupit is not purely but it is ahead and that is a risk for the region. we still think the dollar could weaken quite a bit further. and also within europe, things the poland versus europe or japanese yen versus the euro -- all of those could have at least another 10% plus fall from here. nejra: and i notice as well that you prefer the yen to the dollar because you believe the japanese economy is in a position to cope with the stronger yen versus the increasing deficit of the u.s. dollar. you are short equities. you think the euro could weaken from here. what about in the fixed income space, are there good opportunities t

you imagine james foley as boisterous as david loom, or david blum having the gentle grace of jane foley? i cannot get there this money. mr. bloomnd jane foley are very much on the same page. they have been dead on on dollar resilience. jane alluded to that moment to go. she is with rep. banks: -- she is with rabobank right now. hatzius at goldman sachs, u.s. unemployment rate of 25%, correlate in your call on dollar resilience with dr. jan hatzius' unemployment rate. jane: i think the dollar may wobble a bit when we get bad u.s. data, but really this is the safe haven currency right now. from that point of view, the dollar tends to gain when there is bad news about the u.s. economy, generally speaking, and it goes with that news with everything else as well. this is why the dollar is the safe haven, because it is the global payment system currency. people need dollars. right now no one wants the yen. people are moving out of the yen. can outperform, but it is going to be a dollar story, i think, until people are ready to move back into emerging markets in a big way, and that could be some way off. tom: right. i am not yet, jane

david: at the same time, does this give at least some support for president trump, who says we have to let the states decide for themselves and let 1000 flowers bloom lot of different experiments happen the way you do in a federal system and that may be a way of easing our way back to an active economy. michael: the president's right, we have to reopen. the question is timing and how to do it safely. some say there should be a national standard, especially to get enough tests to the states so they can make sure people are safe. others say let the states do it, we will see what happens. none of the states that are reopening yet meet the president's own guidelines for doing it, but there's a lot of impatience to get going. david: there sure is. thank you so much for michael mckee, ever stalwart correspondent for bloomberg news. up nextame time, coming we will talk about whether the tech industry can save us from the coronavirus. we will do that next on "balance of power" on bloomberg television and radio. ♪ david: welcome back to "balance of power" on bloomberg television and radio. states and the federal government are desperately trying to get thei