fitch downgraded your outlook to negative from stable.d say you have strong liquidity but warned on your oil and energy exposure $15 billion, i want to get a sense of how much of that is at risk, andy. are you preparing for zero prices again on oil? if so, how? >> yes, fitch has take then view across the sector they changed the outlook not the rating on those. so i think that is understandable in the world that e live in. it's one of the air yeas do lend it to. i think what is important to understand there is that the level of lending we have got is now probably about 20% compared with 2015 when we were setting about the restructuring of the business and the areas in which we have ranked have actually become much more select. the proportion which is to high grade investment is significantly higher than it was before. more of this is shorter term and therefore it will work through. so i'm concerned by it but obviously very low oil prices we eed to monitor that carefully. nejra: we've not not gutch -- we've not got much time yet but i want

tony stringer is the sovereign team managing director from fitch ratings.ll ahead, we will get insight into the global labor market. this is bloomberg. ♪ vonnie: it's time for your latest bloomberg business flash. gilead sciences is higher as data may offer hope for what could be the first treatment for the coronavirus. the company says experiment of drug helps patients recover -- says an expert mental drug helps patients recover faster than standard air -- says an experimental drug helps patients recover faster than standard treatment. we will get more details later. hammered general electric in the first quarter. orders in aviation plunged due to the virtual halt in air travel. ge is the primary maker of jet engines. the parent of mercedes-benz is another company hammered by the coronavirus. daimler says sales and operating profits plunged in the first quarter. the company closed plants to preserve cash. that is your latest bloomberg business flash. guy: european equity markets heading into the closing positive form. the news out of the united butes certa

italy is downgraded by fitch.ees revenues slightly lower this year as traders post their second straight quarter of gains. we will hear more from our interview with the cfo, james von moltke. no changes expected from the fed today, but markets will want clarity on asset purchases. third-quarter gdp will show the extent of damage so far from the coronavirus. matt? matt: all right, we just got about 10 seconds until the markets open up. you can see futures pointing up about 0.2%. not huge gains, but there have been a heck of a lot of earnings releases today and that will definitely cause a little bit of volatility in markets. now, they are opened up. the ftse is usually the first out of the gate. not a lot of movement. gaining about 0.1%. we typically get the ibex out next. so, we will see of spain can also hold onto a little bit of gains at the open this morning. it is down, actually, 0.2%. the ftse up 0.1%. the ibex down. you can call each of them little change, which is why the boxes are gray, rather than red or

let's take a look now at some other coronavirus related news from around the world ratings agency fitch says the world is on track for a recession of coat unprecedented depth in the post-war period it could be twice as severe as the great recession of 2009 south korea's central bank says the economy has shrunk 1.4 percent well the corona virus its worst performance in more than a decade the number of confirmed over 1000 infections in singapore has lost 10000 despite robust efforts by the city state to try and control the virus and in china a citizen journalist missing for almost 2 months has reappeared he says he was detained by police and forcibly quarantined. here's a look at some other stories making headlines around the world boeing is thought to be planning to lay off 10 percent of its civil aviation stoff news agency reports the cuts will affect up to $7000.00 people working on the 77 max and the long haul 77 and 777 models boeing is restarting production of the aircraft following. us president donald trump has signed an executive order temporarily suspending immigration he said i

right let's take a look at other coronavirus news now the ratings agency fitch says the world is on track for a recession of unprecedented depth in the post-war period it could be twice as severe as the recession of 2009 u.k. researchers at oxford university will today begin trials in humans of a potential covert $1000.00 vaccine the e.u. says russian media continue to spread anti european misinformation related to the corona virus it's being disseminated via twitter facebook and other social media outlets in china a citizen journalist missing for almost 2 months has reappeared he says he was detained by police and forcibly quarantined. now it is the 1st trial of its kind in the world 2 suspected syrian intelligence officers are set to face justice here in germany today they're charged with crimes against humanity including torture and sexual assault prosecutors are using universal jurisdiction laws to try to to set suspects here now the defendants enter germany as asylum seekers along with thousands of other syrians did every reports now in the hope of one mother that this could bring ju

speech meanwhile let's have a look at some other coronavirus news from around the world ratings agency fitch says the world is on track for a recession of unprecedented depth in the post-war period it could be twice as severe as the great recession of 2009 south korea's central bank says the economy has shrunk 1.4 percent over coronavirus its worst performance in more than a decade the number of been from over 9000 infections in singapore as poss 210000 despite robust efforts by the city state to try and control the virus in china a citizen journalist missing for almost 2 months has reappeared he says he was detained by police and forcibly quarantined in rather race to develop a vaccine is gaining momentum the german drug bio and tech won approval to begin the country's 1st human finical trials of a possible vaccine that accounted for dozens of potential candidates in development in europe china and the u.s. but health officials say it will still be months before a vaccine is ready for the market. the german firm vial and tech is working on what it hopes will be the 1st vaccine for covert 19

kim withs is eric fitch ratings group.aid every state looks challenged, but you're not downgrading every state. in this merriment, what states look healthier to you? what states look -- in this environment, what states look healthier to you? what states look worse to you? eric:eric: we look at --eric: we've looked at 12 states so far, and downgraded two of them. if they came into the crisis from a challenged position in our downgrades reflect that. fundamentally, the states that already had lower ratings were probably the most at risk, and that has been reflected in what we've done. taylor: talk to me about illinois, downgraded to ripple be minus, just -- downgraded to bbb minus, just above junk territory. eric: the things we are going to be looking for our what is the extent of action the state is going to take to manage through this economic dislocation and this crisis. we know illinois is going to have to do things, and every state is going to have to do things in normally would not do. for alan wake, that will be thing

fitch has downgraded to share ways to bb+. interestingly enough, it is maintaining its outlook. earlier indicating that it things american, lufthansa, air france, easyjet all need capital. it is interesting that iag is not on that list. iag coming into this with one of the strongest balance sheets. to alex cruz,king who runs british airways, to ensure the balance sheet was in a position that it could withstand a certificate source of stress such as what we are experiencing at the moment. it had been a major effort ever since the financial crisis. effectively, that was job number one. so the balance sheet may be looking a little bit better than some of their peers, according to ehrenberg. in terms of what we need to know, let's find out about the virus. let's get an update with viviana hurtado. begin with want to dr. anthony fauci revising downward u.s. fatalities from up to 200,000 to around 60,000, but this is this the curve keeps flattening in new york, the u.s. epicenter, and social distancing continues to be practiced across the nation. still, in the u.s., cases are accelera

here's a look now at some other coronavirus related developments around the world ratings agency fitch says the world is on track for assertion of unprecedented depth in the post-war period it could be twice as severe as the great recession of 2009 south korea central bank says the economy has shrunk 1.4 percent over coronavirus its worst performance in more than a decade the number of confirmed a covert 1000 and factions in singapore has passed 10000 despite robust efforts by the city state to try and control the virus and in china a citizen journalist missing for almost 2 months has reappeared he says he was detained by police and forcibly $14000.00 staying with john i would just battling a new outbreak of the current of otters in its north east and local infections in the city of how to be in close to the border with russia went up to 52 yesterday with most new cases coming from abroad that's where the virus appears to be under control from beijing to the former epicenter of people are going back to work but as we report life is different and fears of a 2nd wave remain. high up in a

let's take a look now at some other coronavirus news ratings agency fitch says the world is on track for a recession of on precedented depth and the post-war period it could be twice as severe as the recession of 2009 u.k. researchers asked oxford university will begin human trials of a potential covert 19 vaccine the e.u. says russian media continue to spread anti european misinformation related to the krona virus it's being disseminated on twitter facebook and other social media outlets and in china a citizen journalist missing for almost 2 months has reappeared he says he was detained by police and forcibly quarantined folks wagon has reopened one of its german production plants as the country's all important car industry tries to get back on the road earlier this week dime lower also restarted machines at its mercedes plants but the return to work is by no means business as usual. trickle through the gates of dime liz rushed out planned after 4 weeks of coronavirus closure just a few steps into their workplace staff are reminded that these aren't normal times however mask or no y

let's take a look now at some other coronavirus news the ratings agency fitch says the world is on track for a recession of on precedented death in the post-war period it could be twice as severe as the great recession of 2009 south korea's central bank says the economy has shrunk 1.4 percent over the coronavirus its worst performance in more than a decade the number of kobe 1000 infections in singapore has passed 10000 despite robust efforts by the city state to try and control the virus in china a citizen journalist missing for almost 2 months has reappeared he says he was detained by police and forcibly quarantined now it is the 1st trial of its kind in the world 2 suspected syrian intelligence officers are set to face justice here in germany today they're charged with crimes against humanity including torture and sexual assault prosecutors are using universal jurisdiction lost to try the suspects here the defendants entered germany as asylum seekers along with thousands of other syrians did every reports now in the hope of one mother that this could bring justice for her son and we w

brussels thank you very much let's take a look now at some other coronavirus news a ratings agency fitch says the world is on track for a recession of unprecedented depth in the post-war period it could be twice as severe as the recession of 2009 u.k. researchers as oxford university will begin trials of a potential kopek 1000 vaccine on volunteers the e.u. says russian media continue to spread anti european misinformation related to the corona virus it's being disseminated on twitter facebook and other social media outlets in china a citizen journalist missing for almost 2 months has reappeared he says he was detained by police and forcibly quarantined coronavirus lockdown measures have disrupted supply chains around the world not least in manufacturing powerhouses like bangladesh where close factories have left workers jobless and struggling to survive. despite the lockdown thousands of seamstresses from the textile factories in dhaka have taken to the streets they are hungry and they are angry the government has instructed textile companies to keep paying wages to work has joined the

coming up in the next hour, fitch ratings, ahead of greater be discussingl banks.ave 111.com executive turkmen. 11.com's executive chairman. first quarter consolidated net. second-quarter smartphones and tv profits could decline significantly. of course, we do have the impact of the coronavirus pandemic. mobile dram demand could soften in the second quarter as well. they will address memory market changes through flexible spending. they are saying that mobile market uncertainty will remain high, this after first quarter earnings just reinstated the strength of their semiconductors and dram business. we will discuss all of that as we have the market open in south korea and australia. this is bloomberg. ♪ >> good evening. australia and south korea have just opened for trade. our top stories, asian markets faced an uncertain day as consumer confidence undermined the new york session. waters.rus muddies the infection rises around the world with the u.s. topping one million american deaths. surpasses the number of total sufferers in the vietnam war. the virus is weakeni

tom: this has been hugely helpful, dexter thillien with fitch, on 5g and netflix.ay with us as we watch world-class worldwide. this is bloomberg. ♪ ♪ welcome back to bloomberg "surveillance," tom and francine from london and new york. we have been figuring out what happened to wti that made the contract go into negative territory. brent, the steepest decline in the last 20 years. yesterday we spoke to one of the longest standing bowls in the market -- bowls in the market -- bulls in the market. here he is. volumes, 6.6 high million barrels have traded below negative prices. it shows that prices can turn negative and shows that the prices have been staying a bit too high for too long. they have been propped up by ,romises of cuts by opec-plus by going into an etf, and maybe the fed is buying as well. buy in the if people future and keep them artificially high, it will get worse and we will run out of storage capacity because the market does not get the signal fast enough. that is the difference between equities and bonds, and oil. you can prop up equities, central b

. $15.2 billion in loans, just since february and that's why fitch and other credit rating agencies,e ratings for the airlines and basically said, look, they may have to take out even more loans in the future. they may borrow from the government another $25 billion they may have to go to the private market after that. how much more do these guys have to lever up in order to keep this industry at the level of employment where it's at right now. i just got this a few minutes ago. the number of commercial flights in this country is down 70%. the number of commercial flights globally down 80%. that gives you some indication of what kind of an impact the coronavirus has had on the airline industry worldwide and also here in the u.s >> we're going back to the flight levels of the 1950s probably literally. >> you're down 90% in terms of the number of people that are flying right now rather than the same day a year ago. >> pictures of one guy on the flight, and he's the one that took the picture guy adami, any of the airlines investable they're getting back stopped >> no, but i don't -- fina

cash grant value is when you take a look at the mayor airline stocks right now, keep in mind that fitchast week cut the credit ratings on all of the major airlines in the united states. and why did they do that they're worried of them taking on more debt it is not uncommon to see them take out another billion, ball and a half or 2 billion or more, eater in loans or in credit lines over last 3 weeks and here's the reason why. passenger levels, they have been pretty much bottomed out arnt 90,000 to 100,000 passengers a day. in fact, yesterday was the lowest day ever according to the tsa in terms of passengers and crew members who were screened at u.s. airports way down there on the bottom 90,000 just over 90,000 were screened we think that's probably close to the bottom there, kelly, though hard to tell at this point. bottom line, look for the airlines either later today or tomorrow to say, okay, here's our decision coming to the grants. >> wow okay phil, we appreciate it thank you, sir. >>> the airline industry is one group of companies that sven chur capitalist chamath said should not b

abercrombie & fitch, versace, among names with furloughs in recent days and interesting to note, too, though that vf corporation, the parent of north face and lululemon, they haven't done furloughs and paying the employees at least for a little while longer back over to you. >> do we have any idea about how long a furlough can stay a furlough before the company has to turn it into a full layoff? >> that's a great question i don't know the exact details of that and the reason that a lot of these companies, though, issuing furloughs are we don't know the length of the store close why ares and getting back to business in retail. and by giving the furloughs it allows the employees to apply for some of these company assistance programs under the c.a.r.e.s about and to get the compensation because if you're sidelined but not officially furloughed you are not eligible for some benefits but a lot of retailers don't have time lines and don't exactly know what to do with the furloughed employees or how long it will be that case. >> court, piper sandler's teen survey is out and with america's ki

coronavirus crisis and they're trying to get some kind of pretty and standing they can't change and fitchis what i'm trying to resist looking into the possibilities i don't know what actually i might into trying to put in place to give not certainty police a chance of them not understanding what might happen now you want all the below to do is actually clear that the gene changes there's no international matches that are going to be taken but this is a reality check today and i kept suggesting and what games even the chance that there might be only domestic league games played conceivably behind closed doors in jail doug is quite fanciful like big there will be a point and that comes where you a top actually have to make a decision on if they can resume as early as something like july or august or even later would they still try to complete seasons as some religions integrations. their finances count as marketing sponsors they want to be as fair as possible but still implies the possibility that seasons can't be completed and they have to start again everything is that right or at least t

as of march 22nd you've got macy's, gap ink, "l" brands, footlocker, bed bath beyond, abercrombie & fitchd others that currently have debt that is junk rated, even though those retailers' balance sheets are at least stronger than names like jcpenney, neiman marcus, j. crew, j. jill, gamestop and others who also have junk-rated debt, but on a much lower on the speculative ratings scale. now, the national retail federation is communicating with both president trump and treasury secretary steven mnuchin, asking for liquidity for all. noting that retailers that were solvent before the crisis could be pushed to insolvency through no fault of their own. but as a result of this virus. the nrf says, look, officials are responsive, they're accessible, they're listening, at least, to an array of perspectives one concern, of course, is that if junk bond-rated companies do get access to this aid, that would mean that a company like macy's would be eligible, along with a company like jcpenney, and jcpenney was struggling. it was sort of right there on the brink before this crisis hit. so that opens up

both fitch and the s. and p. are saying that your 10 banks all of your main banks are at risk haughty if the coronavirus leads to literally the people the voters you're discussing that leads to them staging a run on the banks. that is very far fetched. the nations will always see everything but i cannot show you that we are going to where that would draw going into a recession and we will survive 19 mr banks was of article written and understood to mean 3 silver in a budget good to talk to you so i think you very much u.s. president donald trump has a call to fire the country's top infectious disease expert it comes after dr anthony she said more lives could have been saved if the u.s. to taken containment measures soon upness to folks she has also contradicted and corrected mr trump in the past including about what medicines may be effective against the virus live now to the white house correspondent kimberly hellcat in washington so the relationships going south between mr trump and mr folks you can really. ind

fitch doubled its estimate of the slump in global gdp growth.t now sees worldwide output following by 3.9%, more than twice forecast at the start of april. that would be a decline of $3 trillion in global income levels and a loss of four .5 trillion relative to pre-virus expectations. we are facing "a recession of unprecedented deaths." 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. i am karina mitchell. this is bloomberg. haidi. coronavirus cases in singapore have crossed the 10,000 mark as infections continue to surge. let's get to yvonne man with the very latest. doingore is singapore about this continue to rise we have seen in infections among migrant workers? yvonne: the government looking for new ways to house foreign workers that they feel, more than 200,000 of them are living in these tight quarters, often 10 people per room. they share a kitchen area and bathrooms as well, so it is contributing to the why things have progressed so quickly.

fitch recently downgraded hong kong from aa to aa minus.ates for the city have been downgraded as well. appetiteack of risk across the board. risk off. rishaad: you are seeing that as well with what we have with those flaccid volumes currently, seeing perhaps a little bit of a comeback, if you will. let's quickly have a look at the tensions between the chinese and americans. beijing's ambassador to washington is the latest official to suggest the strained two-way ties are in need of an overhaul. he was making those comments during a bloomberg new economy conversation series. >> i should be hoping for more than that. not just a pause intentions, but a serious rethinking of the very foundation of this important relationship. rishaad: let's get more on these ties and bring in stephen engle. what does rethinking actually made? does it mean kiss and makeup or does it mean decoupling? you are seeing signs of decoupling through the trade war with oem manufacturers looking elsewhere around the world for manufacturing. the first order of business, i

stephen schwartz, fitch ratings, head of apac coming up next. the credit impasse of the coronavirus pandemic has increased in its depth and duration. but many economies may be mitigated by financial buffers. joining us now is stephen schwarzman great to have you with us. who is most vulnerable out of the markets that you look at? dr. schwartz: good to be with you. we have been cutting our growth region asround the the depths and severity of the virus outbreak continues. mostn terms of who is vulnerable, it is really a economies that went into the crisis with very high debt burdens and therefor little space when it comes to proactive expansionary fiscal and monetary policies. those tend to be the credit in asia-pacific at the lower ratings scale particularly some of our frontier markets such as sri lanka which we just downgraded on friday. done 18 downgrades of e.m. sovereigns in 2020, the highest annual total in less than four months. are there expectations that things will be getting much worse? dr. schwartz: i don't think we are done quite yet

alix: fitch downgrades italy's sovereign credit rating, putting it on the road down to junk.k check on the markets. european stocks are mixed, but in the u.s., we are seeing u.s. equity futures push higher. it is a weaker dollar story overall with the exception of the cable rate. i want to point out some headlines here from germany. the inflation rate fell to 0.8% in april, worse than estimates. also, the german finance and economic minister saying that they are looking at growth in germany contracting by six point 3% now in 2020. they see growth of 5.2% in 2021, so i definite rebound there. some earnings coming out as well , mastercard suspends its buyback program, first quarter revenue pretty strong at about $4 billion. taking a look quickly at the equity, it is up by about 1.5%. it sees substantial liquidity at the quarter end. their dividend is unchanged, but simper early suspending their dividend buyback program as well. we do have the fed interest rate decision later today. a lot of focus will be on their plans for the balance sheet going forward. let's break it down wi

anna: we have heard this week from fitch around italy downgrading the credit rating in italy.se. it wasn't scheduled. does that help set the stage for the e.c.b. to take further action? >> i think the fact that we have had two of the agencies weigh in on italy and the third one coming in next week. it does set the stage that italy has some problems for the short-term and that the e.c.b. needs to be supportive. i'm quite positive on that because i think it means that swropet any more rating action now for a while after next week which gives them some room to get through this crisis. actually i think that is a positive sign. i believe the e.c.b. will do whatever it takes in order to keep -- just because if they don't, you are -- for people -- the cuts, will italy leave the e.u.? i don't think they will. i don't know the probability skwlowled put on that. matt: do you like the debt then? do you bite or what do you like now? >> the moment we like personal bonds. we're overweight italy. we also have some other ones like portugal and spain. we have been looking at some in france but

fitch ratings expects the nonperforming loan ratio for consumer loans and credit card receivables toan double. i also want to bring up that investors have never been so downbeat on chinese lenders outlook. at biggest banks are trading .54 times their forecast. that is a record low valuation and that is after hi underperforming for most of the past five years. yvonne: a lot of questions on those dividends as well. selina wang with that report, joining us from beijing. coming up, from gm client to nightmare. how the collapse has affected credit suisse. this is bloomberg. ♪ yvonne: it is a shortened week of course when it comes to the trading week. we are getting closer to holidays japan is closed. perhaps these moves are more magnified, but certainly, we are seeing a more risk on session with the likes of taiwan and australia leading the way. we will see how indian affairs. the dollar is a bit weaker here so we are seeing some decent moves when it comes to the kiwi, the won, the aussie dollar as well. it seems like it is the earnings front that is painting a less bad picture. alphabet

coming up next, as on a plummet by hong kong surges, fitch downgrades the city rating.berg. ♪ shery: breaking here in the united states. treasury saying it finalized agreements with major u.s. airlines, saying it made $2.9 billion in initial payments to the airline industry. we have seen tension between airlines and the treasury department, with treasury asking for more strict conditions for .hese payments we have to train dollars in credit virus stimulus, $58 in coronavirus stimulus and 58 billion for the aviation industry, $40 million will go to -- 48 billion to find payroll cost through september. in hong kong the on employment rate has risen was no rest by insight. unresturn of political could add to it. we are joined by our chief north asian correspondent stephen engle. how bad is a plummet in hong kong -- how that is unemployment in hong kong? has relatively few cases of coronavirus, just 1000 cases and four deaths. on top of seven months of protests and that u.s. china trade work, the jobs picture in hong kong is fairly bleak. we have the headline number of 4.2%

fitch is concerned you could see the revenue for the airlines in the second quarter because these low passenger levels drop 90% then for the third quarter, drop down 60 to 65% so there's a good possibility as you take a look at more of the airline stocks, they may have to go back and borrow more. say three or four months down the road they weren't planning on borrowing in this round from the treasury department b, so how much more, guys, can you ask them to lever up before you start to see further pressure on their balance sheets we could hear from some airlines this afternoon more likely by tomorrow. >> worst performing s&p industry group in the market today and for a while now. thank you. opec and its allies agreeing on big production cut over the weekend, but is it enough to stabilize the oil market let's bring in brian sullivan for that answer. brian. >> answer your second question first, apparently it's not because oil fell today despite this massive, unprecedented, historical cut, insert adjective here this was supposed to be an easy decision the g-20 was thrown in on friday the

mississippi's attorney general lynn fitch joins us now. thank you for being here. tell us about the suit you are bringing on behalf of mississippi against the communist chinese. >> good morning. it's a pleasure to be with y'all this morning. my role as the attorney general is to protect all mis mississippians. this suit allows us to seek justice and hold china accountable. when you look at what they've done, it's a malicious and dangerous coverup. the coronavirus has killed. the coronavirus has caused serious medical damage and harm across our country, our state, it's destroyed our businesses and it's altered the way americans will live. so we have to rebuild. and so we see the damage, the issues they have caused, so i'm bringing the suit on behalf of mississippians. >> what are the prospects of this lawsuit against one of the largest countries on the planet who is going to want to just swat it aside, doesn't even take responsible on the international stage. >> that's true. it's the right thing to do. we must hold them accountable. they've gone in and they have sil