can they affect an esm strategy right now?sm could start operating today if the country wanted to tap it. although i do think this whole debate is beside the point in the sense that you have had every country in europe announced a meaningful fiscal support package in the past couple of weeks. you have had the ecb commit more buying power to this through the pet programs. there was already the sense that the ecb was going to finance whatever governments want to put on the market. you do not need to have a corona bond to finance this. i feel like this is a bit of a red herring in terms of getting through the crisis, but it would be the opportunity to prove that europe is willing to make some step toward debt mutual is asian. they should use this crisis -- mutualization.ual is asia the esm is not sufficient for in terms of capacity for that. guy: john, do you think that comes with conditionality? do you think that if a country enters the esm at this point, the stigma attached to that is great? how do you get around that? how do y

it does seem this debate has esm isorward and something they do not want.ave to come up with something else or situation where italy will be in a serious -- weion, and that is have seen how that plays out with the yields spiking. guy: maria, we will wrap it up. maria tadeo in brussels, thank you very much, indeed. we will continue to monitor what comes out of that meeting. there is an expected press conference. we will update you on bloomberg with that news. now one of the biggest hotel companies in the world has been forced to lay off more than 200,000 staff around the world but the company ceo says he plans to rehire everyone it is counting on a strong balance sheet to weather the storm. the ceo spoke exclusively to nejra cehic and manus cranny on the phone. >> i plan to rehire every single one of them. 300,000employees out of because of the hotels being closed as of april 1. i do not know how long this crisis will last. i know you will see light at the end of the tunnel. i do not know whether we will come back as strong as ever before because of the rece

in termsk at the esm, of the scale that might be available through the esm, is it big enough, when theyalk about monetizing the esm, they talk about 2% of gdp. first, your take on that? here is -- stand back in the context of the eurozone and simply acknowledge what has been a governing principle for the last decade, which is, germany gave up monetary sovereignty to the european central bank. the bundesbank has been overruled on every big monetary policy decision pretty much. germany is not going to give up and so weereignty, just know that there is not going to be a situation where other countries can effectively borrow against germany's either directly or indirectly. the model has to be a combination of monetary policy cap in yields and effectively sovereign national decisions. in a sense, i don't understand tactically why people try to bring up this issue of the issuance of eurobonds, because it is just not going to happen. they would make more sense to me given the budget rules have been suspended, actually for come in inense, for this to be allegiance to countries. italy and spain

is there any conversation around that when it comes to the esm? maria: that's a good point. in fact, this is something that countries have pointed to potential he. i am picking italy, but also , almosts been floating saying that this is a credit line that this should be available for everyone. it is not about pointing fingers. we don't necessarily want to tap into it because the european central bank a lot of our debt, but we don't want anything short on the credit side. we want something that is big so that at the end of the year, we have the equivalent of a marshall plan for the european economy. we want something that is not designed to be a short-term shock, but actually to deal with the applications. potentially, italy will in the year in a big recession and with a lot of debt on its balance sheet, and they don't want to do that because they feel if the market were to turn against them, it would be in a much bigger position than before the crisis. guy: what is the view in brussels about what happens if a deal cannot be done? europe is famous for finding compromises. wha

if you look, the italian premier made it clear, i say no to the esm. i want a corona bond. for the finance ministers, it is difficult to engage when that is the guidance we have been given. while this whole thing was happening in brussels, in rome, he was saying if konta takes anything like esm, he is eventually "selling the country out to brussels, so you can see the lines have been drawn so much, it is so entrenched, that it is difficult for leaders to move very much in the current setting. much, maria very tadeo, reported from brussels on the ground with a lack of progress from the european finance ministers in terms of trying to forge a way forward for the esm or corona bonds, even though it would not be called corona bonds. no agreement between france, italy, and spain, and germany and the netherlands on the other side. coming up on the program, we will discuss this further, get an investment perspective on this, and we will speak to peter oppenheimer at goldman sachs. that conversation coming up at 7:30 london time. this is bloomberg. ♪ matt: welcome back to "bloomber

esm saying head of that would take years. the key is of course as always the germans, but you saw the french propose and also the dutch prime minister propose a much smaller deal. the numbers circulated were something like 26 billion euros, way too small. but there is hope something would happen at the euro group meeting in the next week. but i think corona-bonds, how you call it, is unlikely. nejra: thomas harr from danske bank stays with us. coming up, we hear what the boston fed president had to say about when we can expect the coronavirus lending plan for small and medium-size businesses -- we discuss more on the markets next. this is bloomberg. ♪ ♪ manus: good morning from bloomberg middle east headquarters. daybreak era. your top stories this thursday morning -- u.s. stock futures rise after the s&p's worst drop in two weeks. new york and new jersey debt doubled in three days. u.s. officials suggest china concealed the extent of its outbreak. bank of america's ceo expects the u.s. economy to bounce back quickly after th

one of these tools could be the use of the esm, but obviously esm was born for a completely differentd in a completely different crisis from this one. and this is the reason why the on how it is ongoing works now, and the areitionality's it has now completely different that we are leaving now. francine: thank you so much, commissioner. paolo: but that is not the only issue on the table of the discussion. there are many other tools that we can use. francine: commissioner -- paolo: not only having a monetary response based on the intervention. francine: commissioner, thank you so much. too short a time. we will have to get you back on. ♪ these days you need faster internet that does all you expect and way more. that's xfinity xfi. get powerful wifi coverage that leaves no room behind with xfi pods. and now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device that's connected is protected. that's a $72 a year value. no one else offers this. faster speed, coverage, and free advanced security at an unbeatable value with xfinit

. >> no to esm.to eurobonds. >> corona bonds are one form of europe. -- in >> if anyone would agree on that, it never would be in place at the right time to fight the crisis so i consider it an apathetic debate. >> in spain, we think this is a good idea to demonstrate solidity of the fiscal response. tothere are possibilities issue bonds over certain institutions, like esm, if you call that corona bonds, why not? bonds? call them corona repeated, the esm is an instrument that is completely inadequate. andbonds are a sufficient adequate response to the emergency we are facing today. >> we have all the firepower we will need and we will use it. morning, everyone, bloomberg "surveillance," some of the interesting voices on monetary theory over the reach of this pandemic, and so much coming back to federal reserve policy. the secret is when william white writes, everyone reads every word of it. the chairman reads it, the vice chairman, the governors, and the presidents read william white because of his r

jane: i think the esm will be the first stage of this. that will i think be a test. don't think anybody really knows at this stage what the economic cost of this crisis is going to be, how effective the amount of stimulus, the amount of -- and therefore what is going to be needed further down the line. certainly i think the esm will be brought into line before they go down the line of corona bonds, but it is going to be something that just develops. and how deep will this crisis be? we just don't know. statistic we first need to look at to determine that is the human cost. the fertility's and when this is becoming the leveling off. we got to see that in italy perhaps, but it is too early to be confident. but we are certainly not there yet in terms of france and spain. the next two weeks could be crucial in giving us that sort of data, and giving economists something a little bit more -- giving economists and bit more of a framework about the assumptions of the globe economy impact. francine: jane, thank you so much for your wisdom. jane foley there of rabobank. if yo

in theory the use of the esm should come with conditionality.lity will be making powerful countries easier. does that simple he not? ultimately the debt burden resides at the national level. are two things. first of all, looking at the esm it's about trying to look at it as a good thing, saying the tool is already there. don't look at it as a bailout. it's about saying no. toxic.uld be politically it's a fragile situation and very weak. italy can take all of its money. it's a balance sheet that the country doesn't want, they don't want to be in a situation where the debt rockets to 180% and they go through very few recessions going into a contraction. feeling ultimately that your area is turning into a two-tier film. thank you for the update, it's certainly getting complicated again. oil repairing losses today. making progress towards a deal to curb output. tentatively set for thursday. they want the u.s. to join in but president donald trump is showing little willingness to do so. jamie is warning a bad recession is on the way. his annualst sen

the esm feels like the more likely route.s there are no conditions that the southern european countries feel are insulting. they feel all the european countries are in it together and it should not be seen to be , it should be around european solidarity. from that perspective, that is where the clash is. outany is keen to help northern european countries. how do you do that? when you look at the bond markets, bunds that traded at not farback at -40, from where they started the year. italian spreads her 30 basis points wider from where they started. even with esm, it seems there is a form of mutualization happening and bunds are not as safe as they previously were. there is a joint problem that is getting worse and will lead to larger issues. it is interesting to see --i would not say bunds have lost but ifsafe haven space -- you look at the relative performance in a downturn of bun d and italian debts, it has been smaller than people would have anticipated. thank you very much for your time, john roe, head of multi asset fund

are you of the same view, or would an esm type program be enough to shore up the finances of italy?at what the ecb has done is more than enough. i think that the italian fromnment will increase 2%, which was the estimate before the virus, to somewhere around 9% or 10%. the whole additional borrowing thene financed by the ecb the new program announced 10 days ago. there will be no effect on spread and options because the ecb can buy the beer it -- can buy b. -- can buy. actions in terms of the health system -- for bondsce, having europe will make it easier, but in the short term option, that is not necessary. if needed, can the ecb do more for italy? said, if the i 2.29%, thes to fraction of the bonds in italy's capital, which is 13%, that is enough to finance it. i think that narrower -- that could beeurope -- they asked to do it directly through euro bonds -- probably yes, but in terms of the effect on the market, the ecb is probably past confidence, and that could happen through esm. francine: thank you so much for your time. economics professor. we have more of a conversation on

necessary, ornds can it be done with the esm, the coronabonds necessary, or can it be done with the esmecb, or rescue funds? know whethern't corona bonds may be needed to issue countries like italy -- rescue countries like italy or spain. the problem is if you wait, the worst-case scenario might happen, countries like italy might get into serious difficulty. and all the heavy lifting is on the european central bank. i think that's the big problem at the moment. implicitly, everyone is relying on the ecb's new pet program eating successful. but again, that is the wrong idea. politicians should not rely on the ecb, but they should do their share of the work, and currently they are not pulling their weight. this could prove disastrous further than the line. hopefully not. marcel, are you worried that small and medium-sized businesses, consumers throughout this crisis who had to take loans to get by, are going to be saddled with debt, and is it going to be a huge hindrance to a recovery? marcel: yes, this will be a gigantic hindrance. many companies may not survive the crisis, not because o

>> caller: there are different things in this package if i start with the esm credit line, this has beenroached 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

esm has conditionality. ministers sayse and e.u.nt is close and an agreement could come before easter. what are the sticking points? maria: the germans are trying to change the narrative. they don't want this to be seen -- and they are aware that the stakes are very high. the italians do not want to take anything that looks like a bailout. toxic and giuseppe conte could run into a lot of problem if he takes the esm credit line. was saying if he does that he is selling out the country to brussels. , we don't are saying want corona bonds, let's go for a special-purpose vehicle. there could be a level of mutual risk taken on by anyone. ando not have the details countries do not want to see joint debt. toy will say you are trying get an undercover corona bond and we still do not like it. the narrative and tone has changed and they are aware i need to get something done quickly because this is not just for the european central bank. until now, christine lagarde was doing all the heavy lifting. are getting that we vis-a-vis spain and its

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that countries like italy, spain are going to be able to weather the economic storm just using the esmhanism? or do you think that the corona bonds that the germans are so dead set against are in absolutely subsidy -- necessity? thierry: i will be clear on this. i'm a strong believer that to overcome the crisis, everything go country in europe will have to put on the table a plan. range of 10% of their own gdp. germany already did it with its plan. it was voted on last week. this is what u.s. did with the 2 trillion plan supported by the senate and house. every single country is working on this plan. of course, the plan will be finished. let us start with the plan, the business side. and then we will discuss how to finance it. the point is, what the ecb put on the table today will not be sufficient to finance all these plans. one thing is certain. every single eu country should have access to finance this plan. germany has not the money to do it. they will have to borrow everything. your us -- u.s. doesn't have the money. no one has a planet -- no one on the planet has the money to put

within the rules of the esm, we should help those who need it. saying europe can handle any debt arising from the coronavirus crisis but of course all of that fall short of what the spanish and italian government really want which is something like a mutually guaranteed debt instrument let's move on. the federal reserve is seeing a likely shift we'll get minutes from the latest meeting outtoday. more on that when we return. 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. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. s. >>> welcome back quick look at the european session. we have had some worsening, i think, of market trend over the la

that one, they may want to wait until the eu leaders decide because if everyone agrees to go into an esmprogram, 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 verizon. he's up next. this is bloomberg. ♪ guy: from london, i'm guy johnson, with vonnie quinn in new york. ."is is "bloomberg markets verizon communications posting q1 earnings that beat expectations, but revenue that didn't. .tock down by around 1% now trimming guidance due to uncertainty when it comes to sales. joining us to walk through his company's performance in the last quarter and what can expect going forward is the verizon ceo, hans vestberg. thanks for your time today. we really appreciate it. your cfo was talking about the f

for example, like the esm, if you would call that corona bonds, why not? not call them corona bonds? >> i think we have all the firepower we need, and we will use it. nejra: maria tadeo joins us from brussels with the latest. good to have you with us. are we likely to get a decision out of this meeting? maria: you know very well finance ministers are given 10 days to bridge those different opinions, and as you heard, there are many different ones. i would say it is different this time and it is not the first ofe we have heard the idea europe with a joint instrument. what is huge is the countries that are really pushing for it are not willing to let go of it. before when angela merkel would say this is out of the question, we are not going to do it, the waters were almost calm. but this time the countries are not letting go of it. the latest one is the italian prime minister, who yesterday night said that he did not think it was a good idea. that is using it as a bailout fund. do not look atng it as a bailout, this is money that is available now. of if you

is this really a crossroad for europe, do we need to run a bonds, for is the esm enough? unclear if this is emotional because people want solidarity at any cost or whether they really need it economically. : i think it is very difficult at this stage to assess the effect of the crisis in italy compared to other countries. estimates indicate that countries are affected in the same way, some more than others. lookgal agrees that if we at the development of the pandemic, if we look at countries like belgium, spain, i think we are all in the same boat. the point is that the situation is different. there is a higher debt to gdp ratio from andy lower growth rate, so it may need stronger support. i think the political issue is more relevant right now and the economic issue. in the sense that there is an issue of trust between leaders and the european level and there is an issue of the legitimacy of the political leaders with respect to the public opinion. they, a large part of public opinion has lost some trust, vis-a-vis the european institutions, for reasons related to immigra

the two main issues are new credit line through esm and joint commissions are still at the table. there is no breakthrough at this stage. we'll see what finance ministers will do today. >> thank you for that. let's let's update you on some chinese news car sales fell 40.8% year on year the group giving us a snap shot of how much weakness we've seen in auto sales as a result of the coronavirus. earlier on, we updated you where they are seeing some improvement in imports and exports into and out of china at this point as they try to address the lockdown here in europe, giuseppe says they have to maintain strict lockdown they have advised continuation of the strict measures urging the government to produce a road map for returning to work confirming the issue will be reviewed at a meeting today. multiple reports indicate the measures will be extended beyond next week. i see, steve, the new leader of the option has wasted no time weighing in how long we should expect to see this >> i saw that. he doesn't want an exact date but he wants an idea of what it looks like the option is holdi

at the moment even the basics of the esm credit line to support the virus is not being agreed on by members. is it a lack of solidarity? is communication failing? do we need debt forgiveness and will the countries most impacted ever get it? right, but asre all the key political decisions -- decisions, it is a matter of negotiation and finding agreement. i believe at the end of the day, everyone will realize the european solidarity bond is the only route, the only way to allow the south of europe part to survive and as a matter of fact also the core of europe to survive through this crisis. president of the e.u. commission and the former president of italy rightly said in one of our webinars, to whom the dutch will sell the two lips if italy and spain and the rest of the south of europe will fail? it is in the interest of european citizens to show solidarity. it is not about helping italy or spain. it is very much about safeguarding the rest of europe, the entire concept of the european union. tom: when will we see an institution set forward in orope to provide leadership, is it every natio

then the third is the esm credit line expansion, valued at about 2% of gdp with very limited conditionalitye last one is politically fractious, but what all eyes are on is the language around recovery if any? that is the big point of contention. we are bearing in mind after this meeting we go straight into a press conference. there is no written communication at this time. the way it is articulated will be crucial to determining how investors react. guy: what you think the outcome will look like? the french proposal looks difficult to achieve. the spanish proposal, that may be more possible. what i've been reading, certainly to the suggestion is the easiest course is to include this recovery fund within the eu budget that the commissioner will deliver and maybe there is gearing around that so we could see borrowing around that. the current budget is about to run out, so the debates around the budget is difficult at best. i'm wondering what the possibility of that being the most likely vehicle for achieving something? stephenie: i think it is fair to say that middle ground approach they are

notar, the regional plan is to increase that but rely on the ecb, credit lines and the esm and lendingor the european investment banks. there appears to be limited coordination when it comes to with countriess like austria implementing the phased in returns. joining us is the european investment bank president, werner hoyer. let's start with the issue of debt neutralization and the debate that it's taking place in europe. saystalian prime minister people will write europe off and everyone will do their own thing without an agreement on shared data.if there is not a leap toward federal lysing debt in europe, what you think the implications are economically? >> i think the question of mutual is asian of debt or euro bonds is too much in the foreground. what's important is that the european citizens need solidarity. that can take different forms. solidarity is not felt might people, then they lose their belief in the european project and that would be extremely damaging. who are theountries toughest opponents to euro bonds or corona bonds or whatever you call it, they will suffer the most

on the three components, the 200 billion dollars in guarantees for the eib, the credit line for the esmand then the unemployment scheme with 100 billion from the commission. i think that is ok. i wish they would do something much more dramatic, and i wrote about this in my notes yesterday. i think there should be an agreement to finance yourself through this crisis because it takes too long to make it mutual or some other construction, but then there should be a pledge that if the ecb wants staff to unload their papers into the market, you mutualize that debt. bigwe will not get a dramatic move from the european side. unicreditnielsen of with us. worldwide on this monday, this is bloomberg. ♪ francine: happy monday from all of us at bloomberg. this is "bloomberg surveillance ," and this is what the markets are doing. we saw a selloff with asian stocks. here in europe, and a lot of the focus is actually on corporate earnings. a lot of the focus is on the number of debt stabilizing across many countries, including spain, italy, and the u.k.. rising with the dollar, oil plunging. tom was s

if you listen to the italian esm hasou do see the been vilified to such an extent i do not see how ats stage they can sell this to the italian public and pretend it is a good thing. vonnie: how long can we count on europe maintaining a unified public response? at some point countries will just have to look after themselves, right? maria: they will. and at this point what the italians rely on is the european central bank. a lot of europeans i spoke to said perhaps the recent move i -- we saw today approaching 2% has to do with technicalities with what the european central bank is buying and they will fix that to avoid a fragmentation in the spread and this will correct itself. enough for ad country like italy to rely on central banks. there was a lot of hype to significant stimulus do european countries sharing the burden. this is not what we are seeing. that is what the markets start to worry about a few weeks of from now. how sustainable is this? what will the debt pile be over the long term. is that going to be enough? vonnie: thank you so much for reporting these days. that is mari

in the btp yields as a result of the italian prime minister suggesting he could be open to using an esm

in the btp yields as a result of the italian prime minister suggesting he could be open to using an esm line. vonnie: to bring you up-to-date on the situation regarding the coronavirus in new york, governor andrew cuomo saying there have been 481 deaths in the last 24 hours, holding below 500. also some stabilization to hospitalizations. they are once again basically flat. we had about 1800 yesterday. governor cuomo saying the curve is on the way down, but at the same time, we need to keep ourselves very vigilant. about 1300 people hospitalized with coronavirus yesterday. hospitalizations basically flat. overall virus deaths in new york , now 14,828. meantime, the markets are registering losses today as well. the s&p 500 down 2.7% right now. energy companies not doing so well. neither our travel companies like expedia. crude oil is in a category of its own right now. $3.31 is what the current month's contract is trading at. the dollar index might be more interesting to look at in some sense, at 100.18. some strengthening, including the hong kong dollar, which had to defend its peg becau

is this a crossroad for europe and we need corona bonds or is the esm enough? unclear if this is emotional because people want solidarity, or if they need it economically. stageis difficult at this of thess the impact crisis on italy compared to other countries. indicates allte european countries are affected in the same way, some more than others. if we look at the development of the pandemic, if we look at spain,es like belgium, we are all in the same boat. the point is the situation is different. stocks have a higher equity ratio and a lower growth rate. it may need stronger support spirit i think the political issue is more relevant than the economic issue. there is an issue of trust because of the leaders at the european level and there is an of thef legitimacy political leaders with respect to their own domestic policies. in italy, a large part of the public opinion has lost trust vis-a-vis the european institutions for a series of reasons. immigration, but also to describe this, which started first in italy, and they want more. and the scale of wishes, s

but i would say at this point italy is, two very difficult decisions coming up, what to do with the esmn. matt: thanks very much. maria tadeo talking to us about the state of play now. coming up, we speak to the ceo of allianz. that exclusive interview after we saw germany will backstop credit losses. this is bloomberg. matt: welcome back to "bloomberg markets," european open. 30 minutes into the trading day, looking at gains across equity indexes. if you want to take a look at broaderx 600, the european benchmark index, you can see gains there as well, coming back from a dip earlier in the session, off a little over 1%. in terms of the breakdown, in terms of the sector breakdown, you can type grr on bloomberg for any index and see the breakdown there. right now, we have travel and leisure stocks rising, as well as technology and bank shares on the up. now, let's get the bloomberg first word news for you, top stories from the bloomberg terminal. the coronavirus has passed a grim milestone with global infections topping two million. it took about four months for the virus to infect the f

my expectation is we would see esm loans with low conditionality, but the dutch government is pushingty, which i think is shortsighted from the dutch at this point in time. we could see very significant discord in the e.u., not for months but for years to come. matt: peter, thank you very much. really appreciate your insight today. peter kinsella, global head of fx strategy for union bancaire privee. peter will continue the conversation with me on bloomberg radio, 9:00 london time. dabhe london area, use radio. anywhere else in the world, use the internet. don't miss our exclusive interview with the ceo of u .b.s., joining "bloomberg u.k. time.e" at 9:30 this is bloomberg. matt: welcome back to "bloomberg markets." this is the european open. right now 21 minutes into the trading day and seeing more than 2% gains in london and frankfurt. different sectors' recovery project raise after getting hit by the virus. the goldman sachs asset management chairman touches on the current market environment and what goldman sachs clients are looking for and investing in at the moment. she spoke wit

if the eu puts together a lending program similar to the esm in italy, that could open the way for outrightbond buying of italian debt. the question is -- that is a question down the road. alix: fairpoint. the other monkeywrench in this whole thing is inflation expectations rolling over completely and is the two year breakeven now a negative territory as oil has been continually hammer? look at the oil impact. how do you look at it when it comes to central banks? deflationary impact, does also give them more cover? how do you see it? michael k.: it is complicated in the short run. normally you think about commodity price shocks like oil hitting the market, it is positive and negative. it is negative for the energy production distribution network, but it is a positive for users who have lower input numbers into their usage for the household sectors. right now large part of the global economy is using oil. falling oil price does not seep through to greater household confidence in household spending because they cannot spend money on anything. it is complicated in the short run because demand

joint debt issuance, a corrado bond, if you were, well northern countries say use the bailout fund, the esm. leaders are supposed to meet on thursday to figure out what they are going to be deciding on. alix: all right, thank you so -- thanks a lot. michael mckee will be sticking with us. back to that breaking news on exxon cutting its capital budget by about 30% to the lows since 2016. that company is the latest major oil company to retrench. and marie horton joins me on the phone with more. walk us through some of the details. annmarie: as you say, they are just the latest joining the raft of major producers slashing expenditure to try to boost cost savings. you think even exxon is feeling the pinch, the collapse in crude price has been so severe. they are cutting their 2020 capex by 30% to bring them to $23 billion. they saw originally up to $33 billion. this is the lowest for exxon since 2016. another sticky on the bloomberg, they see industry refining output to decline, which reverses course on a massive investment drive exxon was planning for. it is going to be quite painful for them.

issues, the terms that would be applied to any credit line from the euro area bailout facility, the esm, and how they would finance a plane in the long run. 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 be

doesn't access the esm and get some support, that means higher yields for the country. what we have been seeing play out. potentially why christine lagarde is in the market discussing it. oil pretty much flat. the new thing is maybe we will pay u.s. producers to keep oil in the ground. that came out from the u.s. government. we are breaking that down later in the hour. joining me now is julian emanuel , btig chief equity and derivatives strategist. good to catch up with you. we are coming off of the morgan stanley earnings and all of the big banks reporting. how do you think about earnings season this time around? julian: you really don't trade earnings season for the most part. when you think about it, with the vix at 40, there is just so much noise from day-to-day that you really need to focus on the bigger picture. that having been said, we acknowledge that the price reactions to the earnings in financials the last couple of days have really been somewhat disappointing, and from that point of view, when you look at the next several weeks and look at the world making

do not think we will see corona bonds, but we will see some liberalization of the terms under which esmkstop be a helpful for some of the economies that are coming under pressure, and a nice complement to the powerful program the ecb has put forward. judgehow are you going to which economies will come out better than others from this crisis? is a very important question. effectivenessthe of the measures that have been put in place to eradicate the virus. plansl also depend on the they implement. we will see different countries come back to work at different times with different speeds. i think that we will be able to ,earn from that experience hopefully china will give us useful perspective as well. this issue of who will be able to do it most effectively, i think that is an open question at this stage. a really insightful answer, thanks so much. nathan sheets of pgim will be sticking with me. i want to give you an update on what is making headlines outside the business world. here is viviana hurtado. viviana: boris johnson is in stable condition and responding to treatment for coronavi