is that christine lagarde, is that what they are doing? >> let's keep in mind that as i said, europe, the economy was probably hit a little earlier and it is unequivocally positive for president lagarde to be adding 600 billion to the 750 they already announced, and extending it for a year. the truth is that absolutely pales in comparison to what the fed has done. both in terms of speed, the fed has moved much more quickly. in terms of size, the fed has really put no caps, the bank of japan has put no caps. and also the breadth of the action. if you are taking a balanced look at the fed actions, japan's actions, while they are unequivocally positive, they are probably also lagging some of the other economies and i would expect there to be a continued spread between the economic recovery in europe versus that in the u.s. because of the fed and the fiscal actions. in terms of their speed and size. just picking up on part of is it ok that, financial markets are rallying in the way that they are at the moment? given what is happening in the re

madame lagarde is on that calendar. i'm sure what she is saying come and much of what we saw in the united kingdom yesterday, is let's get to it and keep the fiscal stimulus pressure going. none of these people are standing aside and relaxing. they clearly seems to be the message. francine: 100%. if you look at the shift of a lot of the language of the central banks, they see the range of forecast tilting slightly to the downward compared to where they were months ago. we will have plenty more on the markets. let's get to first word news in new york city with ritika gupta. upika: china plans to speed purchases of u.s. farm products to comply with the trade deal. beijing will buy everything from soybeans to corn and ethanol. purchases fell behind because of disruption caused by the coronavirus, and the countries have been sparring over the origins of the disease. human rights and hong kong. secretary of state pompeo is denouncing former national security advisor john bolton as a traitor who has damaged america. pompeo sa

good lagarde: -- >> afternoon. pres. lagarde: i said good afternoon. >> good afternoon.rst question -- some of the reports before the meeting suggested not all of the members of the governing council are ready to support an increase in pep. can you give us a sense of how wide was the support for the measures you adopted? my second question is about your strategy for investment under pep. you say they will continue until the end of 2020. if everything goes according to plan, the rollout of those purchases could start at the beginning of 2023. sayshile, the guidance programs will continue past the date of the first rate hike increase. does that imply that the roll up from pep would start before the first rate hike? thank you. pres. lagarde: your question reframing for you the cost benefit -- i was tempted to say the benefit cost because there are more benefits than cost of our pep. hasuld observe that the pep already demonstrated it is a successful program. the downwardted spiral in financial markets and reduced any tail risks at the time, without which we have been in a s

ecb and christine lagarde. lisa: the interesting thing to me as we are not necessarily seeing the emergency in markets. as tom was sand, we are going to get the release. we got thoseget, u.s. initial jobless claims every thursday morning. how quickly are some of the people getting rehired? how much are these numbers understating the situation given the discrepancies we are seeing? so many questions, but hopefully we will get a glimpse into potential recovery. -- jonathan: we will bring that data to you at 8:30 eastern, just ahead of that news conference, with ecb president christine lagarde. we had down to washington to catch up to kevin cirilli, chief washington correspondent. of course general mattis gets the headlines, but arguably, the substance came from secretary esper. precisely. i spoke with a source who is very close to former secretary mattis yesterday, who reminded between --ention that the tension between matti s and trump predates this. secretary esper telling reporters there were some disagreement

christine lagarde speaking a little earlier today. she will speak at the bottom of this hour as well. speaking to us from washington is adam pozen. banks,alk about central particularly the ecb given the fact that christine lagarde has just been speaking. herhe doing enough and are calls for greater fiscal policy out of europe ultimately going to be met this time? adam: president lagarde is and --the right choices in the public call for the european union and the euro area to step forward on fiscal. there's only so much monetary policy can do. i would not say they have maxed it out, but they have done most of it. the next step is fiscal. my concern is it is part of the european union's multiyear budget process. the commissioner explained at an event last week, until the first quarter of 2021. that will be an issue. but this is a huge step forward in design. guy: -- as tothere is a debate where that money goes, to what country, what qualifications do you use daca do you have best qualifications do you use? do you have best practices? ad

the main event, the ecb meeting, the main request regarding christine lagarde and the governing council and the bond-buying program. a lot of attention there we are seeing a little reversal in the euro trade. that has strengthened very much and we are seeing a little bit of eye retreat as we come in today. let's look at the dax in more detail you had daimler down sharply this morning we have bounced off the lows of the morning. a bit of green on the board. we did hear from adidas earlier today. they are seeing a return to growth in china in the month of may. so optimism there. german index is trading a little lower this morning let's look at banks. commerzbank, deutsche bank very central to today's trading session given the ecb meeting. on that front, let's flush out what to expect today the central bank is forecast to ramp up the 750 euro emergency bond buying scheme the ecb may also expand purchases to include corporate bonds. analysts will be looking out for any response and move towards debt neutralization as well as the forecast of growth in the eurozone getting out to annette mada

we heard from christine lagarde yesterday.get euro area gdp's this morning. , the natofternoon secretary-general will deliver an address on strengthening the all liens in a post covid world. day meeting kicks off and officials are expected to leave rates above zero and recommit to using their full range of tools to support the u.s. economy during the pandemic. "as you work" could be the message. and a lot of talk about the yield curve. matt? matt: stand record miller has kenmiller hasn druc become the latest investor to say he was too cautious to capitalize on the rally. the s&p 500 has wiped out its from 2020. and retail brokerages have account sign-ups and trading volumes in the last quarter. as the so-called -- has the so-called dumb money gotten a lot smarter? is with us. lot do you think -- have a -- has a lot of the smart money missed this rally? tom: hello and thank you appeared if that is true, that would be flattering because we would be described as smart money. we have not chased the equity markets up aggressively s

has been lagarde calling for actions like this from the beginning.alt reaction from the 27 countries on an integrated basis -- and keep in mind, the financing or this $750 billion will be through eu bonds, so it really is all for 1, 1 for all. if we can complete on this, it is unequivocally positive. for the dow is my least favorite on the planet. with this make you want to buy europe in a different way than you did the war? i know you are interested in greece and italy, but does this up the ante into what you want to look into? bob: this is very interesting, particularly when you look at financial sector, one could argue that u.s. institutions are stronger, healthier, better capitalized versus the europeans. but when you look at the valuations, they are so low in europe. in the case of banks on the price-to-book, in other areas in terms of the multiple of earnings, europe provides a significant opportunity. we recently invested in a paris-based broker-dealer. they are showing that there are ways for institutions, in this case, not a bank holding com

lagarde christine saying the decision was unanimous.o you think the market was convinced by a clear communication story from the ecb? is the message fully and loudly understood by the market? >> good morning. nice to hear you. new, i think the ecb yesterday and the policy announcement -- they were really quite impressive paid as you say, we had the extension, confirming the extension from mid-2021, reinvestment until 2022, managed to roll offs as well in terms of those policy proposals into the future. so an impressive announcement, which puts the ecb quite ahead of the curve. i think. as you say, clear communications also from the guard. this policy announcement, for me, is quite important because it begins to help us keep bond yields at the right kind of level. as you saw in terms of the market response yesterday, we significant improvement in spreads and periphery spreads, so that is telling you i think that the market is responding to it positively. the worrying sign was the action on the euro because what we really want to see for

christine lagarde says the pandemic plan is targeted and proportionate. the world bank sees the worst global recession since world war ii. senate democrats with a sweeping police reform bill. manus: 6:00 a.m. in london, 9:00 a.m. in dubai. i have two pieces of paper, one is the dollar destruction story, is the bondte one vigilante trade -- it was not really a bear market, but what i like is he says the market selloff was a panic attack. i want to tell you i have had more panic attacks since 2009. i think they are inextricably linked. nejra: it is always great to kick off the show with an update on how many panic attacks you have. i love the daily comments, he has coined another acronym, mother of all melt-ups. to classify what happened in the selloff is a bear market is if we are talking about a bear market, you might expect more losses to come. if you see this as a panic attack, you could have faith in further games. erase see the s&p 500 yearly losses. we are seeing green on the screen in asia for several days in a row, but weakness in u.s. futures. wha

let's talk about europe and christine lagarde. stands before european lawmakers today. , public to bloomberg hernandez the costa says deflationary risks warranted the decision to rally. still with us, patrick armstrong from plurimi wealth. when you look at the things we are looking for in europe. we had some pretty discouraging figures out of germany. how does the european economy stack up with the u.s.? patrick: the european economy is struggling more than the u.s. industries with comedic asian sectors that the u.s. has in the , the banking sector and industrials in europe are hard because they are more at risk, even the policies on social distancing. we have not seen the bottoming of these germany economy -- of the germany economy. stimulus being approved right now across the euro zone. and are in place now probably seeing the bottoming happening. don't expect remarkably sharp recovery. happens if the ecb -- at ecb level? a lot of this recovery is dependent on the central bank. what happens if there is a legal challenge? patrick

bringer, i also need to in a headline out of christine lagarde, which is market movement.hat e.u. leaders are meeting to talk about the summit, meeting by video conference to talk about this package, and madame lagarde moments ago warning these leaders of market risks if there is no stimulus deal, something that seems obvious but it is always good to get a reminder from the president of the european central bank. we need to go back to juneteenth and the black lives matter movement. jennifer, thank you for joining us from new york. the protests have gone global. where have they happened and what are protesters asking for? jennifer: the protests globally were inspired by what happened in america, but then they involve -- they evolved into countries reckoning with their own entries -- with their own issues with racism and colonialism. we have seen them in brazil, and south africa, the u.k., and across australia, where it is fascinating that they are not just asking people to remember that black lives matter, but also that indigenous people's lives matter. frustration has turn

christine lagarde says action has to be taken.dus is set to production cuts after a breakthrough in high-stakes negotiations and could sign a deal this weekend. russia and saudi arabia are said to have clinched agreement with iraq home of the pair accused of shirking its share of restrictions. the agreement still to be ratified would see opec-plus extend its record production curve for another month until the end of july. myanmar says it will hold general elections later this year, confirming expectations for a vote at the end of 2020. the national league for democracy scored a landslide victory in 2015 as myanmar emerged from five decades of military rule. allegations of genocide over the treatment of the minority have overshadowed her administration. yvonne: another check of markets. the theme of today and the last 24 hours is curb your enthusiasm because we are seeing mostly lower and it comes to asian equities after global stocks had a studying rally -- a stunning rally the last two months. a seventh day of losses for your blo

i think maybe that last question in the press conference , president lagarde would probably say he got off to a shaky start with one of the earlier conferences. she did a good job today in reassuring the market, she was very clear in her communication. at the end of the day, those things are important, but even more important is the substance, the content of the measures announced. it is pretty big and it will be the driving force behind the market actions. alix: of course you're talking about when she said it is not her goal to target spread, that made the markets pretty angry. nonetheless, she did say that they are too tight. you have a read on what they want to see, they have to be looking at yields and saying this is where we get into a safer place. what is that level? , in manyre looking at of their communications, this gdp weight and government bond spread through the curve which basically reduces all of the financial conditions, at least the component of them, from government bond spreads into one useful variable. is something i would describe as waxing a form practicingtrol --

we did hear christine lagarde make the point again that she needs fiscal support on this.iscal support has to now.from european -- series ofbeen a announcements at the national level. commissionn recovery plan proposal. the discussions, i am afraid, will be tough, will not be easy. at the same time, when you look at the economic impact, it is important because it can make a big difference. thanks very much. stay with us. william de vijlder, chief economist of bnp paribas. what we will talk about next, how do you forecast in uncertain times and how confident can you really be in any predictions that you were colleagues are making at this point? -- or colleagues are making at this point? this is bloomberg. ♪ anna: welcome back to the european market open here on bloomberg tv. a decentooks at for bounce. let's get back to our guest, william de vijlder, bnp paribas chief economist. i have -- have you given any thought to how atypical this recession is? it came on very quickly and we talked a lot about how unique this situation is. it is certainly unprecedented perhaps in its d

coming up, ecb president christine lagarde appears in front of european lawmakers just days after the bank boosted bond buying by more than the market expected. this is bloomberg. ♪ nejra: this is "bloomberg daybreak - europe." i am nejra cehic in london. we start the week on a front foot in terms of risk appetite. u.s. futures slightly higher after global equities had a third weekly gain. of enthusiasmt over the ecb last week. 10 year yields edges up, a 24 basis point rise. positive but some of the gains from the opec plus deal fading. christine lagarde appeared in front of european lawmakers today days after the central bank boosted bond buying by more than the market expected. speaking to pablo hernandez -- he said the deflationary risk warranted the move. esty dwek is still with us. thank you for sticking around. even after the ecb surprise, going beyond what the market expected, people immediately began to call for more. do you expect more from the ecb and if so, what? took a page out of the fed's book and announced a bigger than expected increase to the program and an exemption.

we have images of christine lagarde on suite at the moment.uggested it could be as bad as 10%. , doesthe german response that skew us firmly on the medium term, the medium severity outlook? worked at the central bank for over a decade. when you wanted to steer the committee one way or the other, you would give them alternatives. you would all his them to pick the middle one. the ecb gave us three scenarios last month. s.ntraction was due to them basically picking the middle one. the certainly helps. we've got to get better. the forecast would have been close. it would have depended what they were expecting. it is quite often a very mechanical update. this complicates matters further. the covid pandemic. they may not even offer a forecast. after all, the bank of england, they certainly shied away from offering a new forecast. we will see. i can't see the ecb staff doing anything that is massively away from consensus in their headline numbers today. annmarie: simon wells from hsbc stays with us. we will get to the boe in a few moments. key event

christine lagarde has warned -- the banks up but prediction is unlikely japan out. a coalition has agreed on a $100 billion seamless package to get the economy going. that has exceeded the top end of expectations by 30%. the deal includes a cut in the value-added tax, plus there is money to build outside networks and railways and double incentives for electric cars. global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in i amthan 120 countries, leigh-ann gerrans. this is bloomberg. francine? come? -- tom? tom: thank you so much. equities, bonds, currencies, commodities. not much conviction on where we will be at 9:30. vix,utures -91, and the 26.15, showing a remarkable level. to 26.15.hrough i would also note gold showing some moments, under $1700 per ounce. francine: i spent a bit of time with christian nolting of deutsche's talking about gold. the stock rally powered by the speedy global recovery is taking a pause. the dollar climbing. treasuries are steady. i would point out -- i put the italian 10-y

christine lagarde at one point said she is not in control of this bread and does not want to be, nowt seems like the ecb is looking at this bread and wants to control it. the scenario you just laid out makes it look like there is no way that is not going to blowout. marilyn: i do think a lot of the headwinds we saw in europe before -- before there was a lot of concern around some of the peripheral economies such as italy and other countries where huge amount around the political situation, the fiscal situation, but i think the ecb gave an upside surprise for most market participants. we saw a huge increase in the pepp program in terms of extending it to at least june 2020 one and extending the reinvestment. to a certain extent, i think the ecb has done a lot more sense that phase and since the market reacted to christine lagarde's comments, the ecb has done a lot more to help to support spreads and support the underlying financial conditions. forward, we will start to see more dispersion in terms of the individual economist, and that is certainly key. some economists come out of this

what did you learn from christine lagarde yesterday that gives you strong euro in the future?or what anyone -- for anyone holding a short euro position, you had eu recovery ds and then german fiscal stimulus this week. yesterday, the ecb. what really changed was the correlation to the markets. in the past, when you had qe, it is a cell euro story, meaning lower yields, outflows from the euro area into the u.s., and that would be dollar strength, euro weakness. into yesterday, we said to our clients, it is a different ballgame. qe will lead to higher growth expectations after a long period of time, months now, of european equity outflows from foreign investors. we said, if we get an unexpected qe program, which we did yesterday, then we would see inflows into equities and banks will outperform as well. we have seen all of that play out, tom. we: in jobs day in america, don't do lagrange functions, but i will ask you to do -- to triangulate three major payers. stronger euro, dollar ambiguity, and greater yen ambiguity. triangulate them six months out. jordan: i think we will hav

it has been a bit of a lagarde as were the german and french markets. a little catch up, german stocks up a half a percent. the stock market a little bit back more than dout 04 firmer across the board. repositioning on the board too we've been closely analyzing the implications with dividends and buy backs caution to real estate and health insurance versus some of those gains and technology. industrial rallying and you've got a decent trade in media stocks one of those areas hit by the slump in advertising we've seen a lot of bail outs in the return to the market easy jet tapped the market lufthansa agreed with the major share holder stepping aside to clear and allow into the german carrier. of course air france klm now with all sorts of strings and consideration. not holding on to some of the early gains. up close to 6% now 4.2% hard to hold on to the extra green holding on to the boards drilling down quickly at the start of the shift we were in the green and in the stocks deutsche bank in particular and now selling up 2 plus percent hsbc, two patches

are really focused on what could be an original ecb meeting at 8:30 new york time and christine lagarde's important press conference and q monday -- and q&a. right now with our news in new york city. formerident trump's defense secretary jim mattis is condemning his former boss in a scathing letter. saying the president misuses the military. he says they must reject those who make a mockery of the constitution. president trump responding on twitter, saying he did not like his leadership style or much else about him. meanwhile president trump seems offense topy with's kotik. -- with defense secretary esther -- esper. in crete --sts expect the european central bank to increase monetary stimulus. warmed --lagarde has warned that -- in hong kong, lawmakers have passed controversial laws banning residents from disrespecting china's national anthem. that adds to fears that beijing is tightening its grip on the former british colony. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by over 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this

the real story is that the yield market in some of this off what we saw from christine lagarde yesterday -- i will go right to it -- the vanilla spread, the difference between the two-year yield and the 10-year yield has .oved three standard deviations here is a sophisticated word for that. it is a join or must steepening -- it is a ginormous steepening in the yield curve. francine: stocks rallying and the treasuries falling as investors are focusing on the stimulus, off the u.s. jobs report is expected to show the highest unemployment since the 1930's. with a good conversation an employee from blackrock. how consumers behave will give us a glimpse on what post lockdown economy looks like. keep an eye on that. sixthoking set for its weekly gain after opec-plus reached a tentative agreement to extend production cuts. sombermber and -- a memorial for george floyd gave way to intense protests on thursday. response hasmp's created unease, particularly among republican lawmakers. all of this ahead of the elections in november. joining us now is amy pope. for deputy homeland advisor president

. >>> christine lagarde says the world may be past the worst of the crisis but she cautioned the recovery will be in her words, quote, incomplete and might be transitional in europe, you can see generally positive there catching up to us in positivity. dax up 1%. >>> coronavirus headlines drive much of the conversation yesterday, the cdc said it estimates for every case reported, there are likely 10 other infections that means the real number of americans may top 20 million frank is here with the latest this morning on those headlines. good morning >>> that is right. we have the outbreaks in multiple states, the governor announces that he's pausing the efforts to in his word, corral the spread hospital rates spike in 16 states this week 35 states are using the contact tracing technology from his company. here is what he said on mad money last night >> just wearing a cloth mask reduces a spread by 90%. second thing is test and trace you got to test. once you do test, you've got to trace. that is true for states like we've heard from these incredible governors and corporations as well >>> t

francine: it was very clear -- we heard from madame lagarde a couple of weeks ago, looking at the range, that they were expecting the economy to fall by, were on the weaker end or were on the worst and, and we are not going to get the kind of rapid recovery that maybe we could have expected. when will you make the cola what kind of, you know, recovery we will see -- the call of what kind of, you know, recovery will will see? frederik: i have stopped making forecasts. [laughter] we are doing our best to track the recovery. we are encouraged by the recent news. on the other hand, we need to get pmi's, they make the best prediction, and they make little sense, for instance, we are not above 15, whereas the month of april should have been better, but there are mixed signals. let's not lose sight of the bigger picture. the ecb stop production, as you said, will be revised lower, because christie and others said so. -- christine lagarde and others said so. ofs is something that is historic proportions. it suggests that the ecb would need to cut rates by 500 basis points and do several trillio

christine lagarde defends the ecb crisis measures as the world bank sees the worst global recession sincehe second world and cathay pacific comes the latest airline to get a government lifeline in the wake of the pandemic with a $5 billion. good morning. this is bloomberg surveillance. i'm francine lacqua in london. let's go straight to the markets. we are seeing a lift to the market somewhat but a bit flattered then what it was earlier on. 0.4%.oxx 600, down by the dollar is rising. treasuries advancing. we had a little bit of momentum. we saw that historic rally. the dollar strengthening for the first day in nine sessions. the federal reserve extended its main street lending program which means it is allowing more companies to participate. that lessens the burden on banks that create the loans. plenty more on that throughout the day. that's get to the first word news in london with dani burger. dani: hi. lockdowns across the world may have prevented about a half a billion coronavirus infection. that is according to the first peer-reviewed analysis of the impact of health policy. it come

central bank has announced action stimulus measures for the eurozone as well the bank's head christine lagarde says that it will issue another 600000000000 euros in emergency funds to lessen the economic damage from the coronavirus crisis that's on top of a 750000000000 euro package announced in march the e.c.b. says the euro zone's combined economy is shrinking at an unprecedented rate and the bond buying will continue until at least 2020. the latest economy indicators and survey results confirm a sharp contraction of the euro area economy and rapidly deteriorating labor market conditions. the choral novel respond demick and the necessary containment measures have severely affected both the manufacturing and the service sectors taking a toll on the productive capacity of the your royal economy and on the mystic develop and that was christine legarde speaking earlier i'm sorry kelly in berlin thank you so much for joining us here on talk of the units. i'm neal and i'm david welcome to the 2nd season of only. the planet on the brink of disaster we just long in-depth interview experts about one

angela merkel and christine lagarde have fairly harsh words for their colleagues, both warning, if theregreement before the summer, the european economy will face dire consequences. a, would you agree with that assessment of the situation? b, how dire? >> so, i do agree that the proposed recovery fund is an important additional element of what has so far been a very forceful european policy response. we've had a significant policy response at the national level. early response , includingpean level support from the commission for labor markets, this additional, very large fund would complement these very strong measures we have seen so far. indeed critically important. g aare still in -- facin significant downturn. you will see us revising down words further our numbers. it is too early to see how much. the european economy has taken a very severe hit, and i agree we need to continue with forceful policy stimulus. package as well as the individual stimulus packages from germany, france, italy, spain, etc., enough? >> that is a very strong response to how we see the situation right now, b

christine lagarde said they will issue emergency bonds to lessen the economic damage of the coronavirushat is on top of the 750 billion euro package announced in march. the ecb says the eurozone's combined economy is freaking -- shrinking at an unprecedented rate and the bond buying will continue until at least june 2021. a town in central germany has reimposed some coronavirus restrictions, not long after they were lifted. dozens of people celebrated the end of ramadan together, setting off a wave of new infections. correspondent: just as corona restrictions were being l lsened in this germantown, now the threat of a second lockdown looms, and all because some residents in this block breached rules by meetingng oen mass. >> they are endangering everyone, not only themselves, and it is inconsiderate. >> i thought if everyone sticks to the rules, it will turn out ok. there are still people who appear to not be taking it seriously, and that is worrying. correspondent: 30 family members from this apartment blocks celebrated ramadan, violating hygienene and social distancing rules. several

three headlines on lagarde she sees risks to the down side. she sees a q3 rebound. more in the second half. labor market is rapidly deteriorating. ultimately the inflation outlook, she says, is subdued. that's what animates the ecb they only react to inflation if the outlook is down, they have to react to that and they are reacting i think one of the stories of the day that you think about is a very aggressive lagarde. i think she's more aggressive. i don't know how you would have acted in this situation, but she's certainly been aggressive here surprising the market, which is a central bank tool. she used it today. the markets seemed to react favorably to it, joe >> okay. all right. steve, thank you liesmania. like wrestlemania. is that portman, too maybe. anyway, beck, over to you. >> thank you, joe. >>> when we come back, we're going to talk markets ahead of the opening bell on wall street. in the meantime check out shares of j.m. smucker. they beat estimates on the top and bottom line with results driven by covid-induced consumer demand smucker forecast a 1 to 2

european central bank kristin lagard said the worst of the coronavirus is still behind him but concernf a second wave to come potentially. in ash overnight, markets were mixed, markets in china remain close for holiday. asian economies head to worst quarter since 2008 in the financial crisis. kospi was up 1%, and japan nikkei average up better than 1%. some of the top stories we are watching this morning, the house of representatives passing a sweeping police reform bill yesterday curbing excessive force. the bill honors life of george floyd who died in police custody in minneapolis. >> the house is honoring his life and the lives of all killed by police brutality by saying never again. maria: the george floyd justice and policing act bans chokeholds and no-knock warrants, eliminates qualified immunity that protects officers from lawsuits and increase reporting of police use of force. bill stands little chance of becoming law with little hopes of passing in the senate. as the house prepares for final votes, democrats block gop resolution to condemn riots and oppose defunding the police

christine lagarde of the european c central bankk and the bank i joined the call he warned. all across the european union and drag o on the economy. rejections last week the unemployment. that comes also in spite of the fact that he has already worked different. we are ready a one. and the other coursese really. of the year et. has been the ecb's's quantitatative easing programme buying loans. in buying government and corporations and- work with articles that despite the stimulus measures they stole a lot of question marks over his state o of the europeanan economy- this mask. s not quite right. okay because with you very. and finally australia is keeping mum when it comes to naming the country behind a huge cyber attack which is targeted all levels of government right down to the business community but sources down under believe that beijing is the chief suspect a spokesperson in china house there tonight the country has played any part in this attack joe and meals i mean explains. warning bellsls for australaliae country came under a large scale cyber attack on friday as p

these are absolutely disastrous numbers — christine lagarde calling it the biggest economic crisis certainlyd war. and we see the debt levels in countries like italy projected to rise to something like i60%, possibly 170% of national income. how on earth does the eurozone and the wider eu get out of this economic mess? well, pretty much as all other economies will. this is a temporary thing. this is very, very serious. i agree with all the numbers you gave. they are a very good description of the hardship we will experience in the coming months, but we really need to make this a temporary crisis. it does not come as the regular and usual crises in economics do. interest rates are low. we were following a very long — probably the longest — path of economic growth in recent history. unemployment rate was very, very low at the beginning of this sanitary crisis. one of the champions is the uk, but you have other examples in europe and worldwide. so... i understand that, minister. but the problem i'm getting to is that what you have in the midst of this public health crisis is an economic crisis

the markets are watching what christine lagarde will do after the meeting. they will have to do something. increase that 750 billion euro pandemic emergency purchase program. we have seen the amount of stimulus that has called these bond markets in the euro area since the shock that we saw back in march. any stimulust of calls, i think it is going to disappoint. some say the markets will be priced at 500 billion in this program in the near term. the biggest culprit that perhaps sees the most pain is going to be italian bonds. of course, that euro rally could .e good as well haslinda: there are calls for the ecb to be bold. we will have more on the ecb decision later when we speak to the management president at 7:30 a.m. u.k. time, 2:30 in hong kong. that is it from "bloomberg markets: asia." "bloomberg daybreak: europe middle east" is next. this is bloomberg. ♪ >> the following is a paid program. the opinions and views expressed do not reflect bloomberg lp its affiliates or employees. >> the following is a paid presentation brought to you by rare collectible

how many times before covid-19 did you see or hear christine lagarde pleading with the rest of europemoney? her point was -- i will keep regs though but you have to keep the show on the road -- i will w but you have to keep the show on the road. matt: peter coming you are going to stick with us. more to come from peter kinsella. strategy.d of fx coming up, we will talk about america's jobs report and what investors have to look forward to after that. ,eassurance from fed chairman jerome powell is what they would like. we will discuss. this is bloomberg. ♪ matt: welcome back to bloomberg markets, this is the european open and we are 10 minutes into the session. 10 minutes in. bloomberg business flash. top corporate stories. potentially the biggest firm a deal ever. sources tell bloomberg astrazeneca has approached gilead about a potential merger. in the very early stage and there have not been any formal talks or terms and we are also told that gilead is not currently interested in a big merger. a spokesperson for astrazeneca says the company does not comment on speculation. the u.k. i

also seeing some dow lagardes today.s down, verizon boeing and johnson and johnson relatively flat there as well. we are seeing some movement to kind of make things move there as well. something to keep an eye on for sure federal reserve chairman jay powell prepares for day two of the virtual testimony. adding some color to the latest policy to buy up corporate bonds. >> i don't see us as wanting to run through the bond market like an el vant doing things and snufg out price signals like that we want to be there if things turn bad in the economy or go in a negative direction, we want to make sthur we are there with the actual market. should we need it, we clearly don't need it now. >> coming amid reports of a possible $1 trillion stimulus package being weighed by the trump administration along with possible return to work bonus checks to get companies back on track. >> joining me now, cnbc contributor james pethokoukis. is this a federal reserve that has basically backstopped the ee tire economy in the u.s. and globally

turnout when it comes to london but also in bristol, and then you look at central banks, christine lagarde is in front of the european parliament today, and the said is wednesday. interesting,l be francine, certainly with the market recovery, which continues this morning. on the political front, all eyes are on the white house, and i don't mean about the fence wrapped around the white house, up to the top of lafayette park, but really it is a nation that awaits the next step from the president. he was out tweeting in the vicinity of 12:00 midnight on general powell. we will talk about that today. it was an eventful weekend and it continues right into this monday. francine: thank you, tom. we will have more on that and now we will get straight to first word news in new york city with ritika gupta. ritika: the u.s. city hit the hardest by coronavirus starts to reopen today. new york city will allow construction and manufacturing at wholesale trade to start operating again. rios -- retail stores can offer in-store pickup. if all goes well, new york and re-expand the -- can expand the reopenin

christine lagarde defends the ecb crisis measures as the world bank sees the worst local recession since the second world war. and staying in the air, embattled hong kong carrier cathay pacific becomes the latest airline to get a government lifeline in the wake of the pandemic, with a $5 billion recap plan. good morning, everyone. this is "bloomberg surveillance." i'm francine lacqua, here in london. tom keene in new york. i know we need to talk about the dollar and the rally, but we are also getting breaking in terms of data and the euro area and gdp is a bit worse than expected. first court of gdp shrinking 3.6% -- first quarter gdp shrinking 3.6%. it is better than expected -- i stand corrected. tom: it is important to point out that it is calculated differently for early-morning american viewers. that is a stunningly bad number, whether it is a little better or a little worse. the way they calculate gdp in europe is very different than in the united states. i will let the pros do the math, gdpthat is a 12% negative based on the u.s. calculation. francine: we will have a look at metri

the ecb will double its bond purchasing program to $1.25 trillion euros the ecb president christine lagarde ses they still face a contraction of 7% this year. they don't expect inflation to rise leaving it far below the 2% target she said she hoped the boosted bond buying will steer inflation back to pre covid levels >> collectively determine that the 600 billion should bring us over time significantly close tore what i have called the pre covid inflation path while allowing us to monitor how some key impact our policy. so we will understand a little better how the economy rebounds in the third quarter and then later on in the course of the coming months. to have a bit more clarity >>> it is all systems go in equity markets in europe seeing very strong gains across the board hire the ftse mib up 3.3% spanish stocks rally leaving the overall stock market higher. the dax up about 4.4% and trading about 1.4% higher as well this is all interesting because yesterday, in the immediate reaction, we saw the stoxx 600 end the day lower. it was a very choppy session we were trading lower in the lead

>> iraq has been the lagarde in opec they had insisted they should be given ex emton their monthly average6.6 billion. they've had massive protests over the government failure to provide businesses and jobs. they say they need every last barrel they say, look, we pay a penalty if we shut operations. they say they face technical and financial challenges complying saying look, you've signed up for this agreement that's basically their whole production they are seeing some effort to become compliant >> you probably rolled your eyes like i did seeing the headline opec strikes a deal. getting ahead of themselves to say, there is a deal right now, until they get together, there is no deal do you believe there will be a deal to extend the 9.7 million a day for a month. they meet again and revisit. where do you think opec will go with this? >> i think in the end, they'll find some way to put a band-aid over the situation we've already had them on twitter we think there will be some public act of atonement over the month and then it will get reviewed. this is something he takes very seriously. sayi

christine lagarde is speaking right now. youran find that on bloomberg terminal on live go. the ecb president speaking on what is happening with the economy. when it comes to the equity market the -- for track -- the dash for trash is on. alix: s&p for the year is down 1/10 of 1% and the picture of protests over the weekend you would think something different in the markets. euro-dollar around highs of the session. the 530 continuing to steepen. the steepest we have seen since 2016. what does that mean for the fed when they take center stage on wednesday? how do they address the steeper curve? the backdrop continues to be the coronavirus. new york city finally gets a chance to reopen today. i am waiting to hear the construction outside of my apartment. it has been three months under that stay-at-home order in new york. a live shot of herald square and the area around the empire state building. construction, add, manufacturing, wholesale trade, and retail stores can offer curbside or in-store pickup. a former new york state lieutenant governor and current member of mayor bill

but, how much is pending on thursday and whether or not we get more stimulus from lagarde?nk stimulus is key issue. i think the fact that they committed themselves to fiscal policy, which is very different than they managed to break through the logjam they have had for years. buying more government bonds, we think they will, but they may not announce it. monetary policy is a surprise, what is driving the euro, i think, is the prospect of fiscal policy. inrdly enough, that will, 2021, when there is expectation that the economies will be rebounding anyway and this will be on top of that. look at when you relative strength in the euro, obviously we have been here before. he reach that 110 level. but it always has turned out to be a little bit of a head fake. i wonder if we see this peel back relatively quickly once we get a little more clarity? the last 18 times we eurotried to buy into strength, we did have rates at zero for as far as the eye could see. fed in sorthave the of asset buying spree that would shame any em countries. the policy orientation really shifted. the u.s.

tomorrow is about the ecb, about christine lagarde.going to deliver. -- is shens are high, going to deliver? expectations are high, but as you pointed out why she doing anything right now? and it is payrolls friday. alix: it is going to be bad. the question we will assess is how bad. i am also looking at company stories today. walmart's general meeting is underway, saying they are definitely removing guns and ammo from the salesforce -- from the sales floors of their stores and reaction, you would think, to the rights we have seen. google coming out later today. guy: looking to forward to seeing exactly what happens with that set of numbers. i think the walmart story is fascinating. we also have warner media group coming through, it is ipoing that number just being posted. the ipo going out the door at $25 is now trading $27. i guess timing is everything. you would not have wanted to do this a couple of weeks back, but at least they are getting that market away. equity markets your strong. the story a little more muted over there. alix

angela merkel and christine lagarde are having some fairly harsh words to their colleagues.that if there is no agreement, and it was not expected today, but if there is no agreement before the summer, the european economy will face dire consequences. would you agree with that assessment of the situation and how dire? that theo agree proposed recovery fund is an important additional element which has so far been a very forceful european policy response. we have had a significant response at the national level and with some early response at the european level to the -- support from the commission for labor markets. this additional very large fund would complement the very strong measures we have seen so far and the ecb going outside the fiscal -- this is indeed critically important. facing aill significant downturn. you will see us revising downwards. it is too early to see by how much. this european economy is taking a very severe hit and i would agree that we will need to continue with very forceful policy stimulus. >> is it enough? is this package as well as the individual

jonathan: ecb president christine lagarde on a pumping road -- on a bumpy road, a recovery still aheada lot of hope on the back of stimulus. the downturn is deep, and recovery could be slow on the continent. i am sure many of you reflected on 2012 and the whatever it takes speech. in 2020, it is for as long as it takes. low rates for a whole lot longer. in your equity market, good morning to you all. ferro, alongside tom keene together with lisa abramowicz. this is "bloomberg surveillance ." treasury yield higher once again. your yield, 0.87%. in foreign exchange, after eight days of euro strength, we settled down a little bit. euro-dollar unchanged come about the dollar weakening against the likes of sterling and the aussie. tom: no question about that. i am watching yields on the twos-tens spread as well. what is true in market economics and academic economics and labor economics is the world has caught up to david blanche -- to david branch flower of dartmouth college. danny branchflower has been screaming about the inequality in the fictions of some of our labor statistics. now, al

manus: it is interesting -- nejra: it is interesting because even after christine lagarde and the ecbabove and beyond it, there was some houses that came out straightaway, calling for more. 1.35 trillione euros, that should be understood as a ceiling according to the account but do you expect any increase before the end of the year? >> anything could be possible. last time the ecb kept policy on hold, slightly disappointed. as i said, it really depends on the data coming out. rebounding, which is a good sign. it may well could be a second wave. european trade tension, which could potentially derail some of the early recovery that we see and the sentiment in the markets. i think if there is more of that the ecb would deliver more because the markets would be asking for more. nejra: right. how much more upside do you see to the euro then? i thinkeah, so again, it really depends on the economic recovery. euronk that could be versus the dollar. it is primarily because the u.s. dollar has more potential to strengthen in the medium-term, we think. i think the interest rate differential is n

we heard this from lagarde. we heard it from all the central bankers. needs to be more done on the policy front. what is really critical, in terms of fiscal policy response, we need short-term stimulus to lift demand, long-term focus on investment structural growth. and i'm talking about green transitions. francine: thank you for joining us. coming up, we talk about the imf and world growth. this is bloomberg. ♪ francine: this is bloomberg surveillance. i'm francine lacqua in london. as u.s. cities protest police brutality, democrats on capitol hill introduced a bill to make it easier to prosecute and sue law enforcement officers. nancy pelosi spoke exquisitely with bloomberg. >> so much stronger as we work in a bipartisan way. recognition there has to be some change. i leave that up to our distinguished chair of the congressional black caucus as well as the chair of the committee of the judiciary committee working with jerry nadler. i will leave it up to them to have their interactions with in the house, as well as in the senate, and hopefully with the

christine lagarde simply says actions have to be taken.eanwhile, the world's biggest lockdown has cost india tens of millions of jobs, resulting in .ecord low economic activity around two thirds of members have reported so far that communications, energy, and industrials are the sectors worst hit. tokyo has reported 28 new coronavirus cases. that's 128 new cases in the past week, the biggest seven-day rise since mid-may. singapore is warning of an urgent challenge from covid-19 over the coming months, with sweeping job losses on the horizon. malaysia has reported its biggest daily rise in do virus cases since the pandemic first erupted. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. haidi? stocks slumped in the u.s. on thursday with concerns the recent rally has gone too far. promisingerns amid economic data. joining us is erin gibbs. ray to have you with us. is there a sense that the market is finally deciding to look at the dislocation we

the ecb has promised to cushion the blow and president christine lagarde says policymakers will act aseeded. >> i very much welcome the european parliament's call for an ambitious european response. i count on this house and this committee to design a strong and effective financial framework. at the same time, you can rest assured that the ecb will, within its limits, continue to support the recovery with all appropriate measures. karina: tension is rising again on the korean peninsula's with the north saying it will close down all contact with the south. the two sides normally scheduled talks at 9:00 and 5:00 each day, but phone calls have been going unanswered with new propaganda at the border. ,ew pictures of kim jong-un residing over a meeting. a court has rejected demands for the arrest of the samsung heir, saying there is no compelling evidence. lee is accused of bribery and corruption. prosecutors allege he and samsung use the legal means to assure his succession. samsung has ordered an independent review into the impact of the potential indictment. global news 24 hours a day, p