i'm nejra cherish -- nejra cehic in london.na: rolls-royce is scrapping its profit targets after discussing dividends. last month the turbine maker said it would significantly reduce all but essential activities edits civil air and space facilities. boeing decided to keep it seattle manufacturing hub closed indefinitely. the factories are where all of the company's wide-body jets are built. it has been scheduled to reopen late tuesday evening, following a two-week closure. the pandemic injecting uncertainty into boeing's lands to get the 737 max jet into the air. managers --ith fund one of the most volatile stocks months on record. -- ended the month up just over 1%. by the way, none of the managers respect responded -- responded to requests for comment. that is your bloomberg business flash. nejra: let's focus on the coronavirus. martina,ny kind sapphire gin joins us. they are switching production from alcohol to hand sanitizer. one of a number of companies using their capacity to provide. let's speak to our guest to joins us.

nejra: yeah. simon, on the point about dividends, so before the world was really hamstrung by coronavirus, u.k. equities were compared toloved many other global equity indices. if we do see a significant cut back or delay to dividends from u.k. companies, are investors going to react negatively to this or see through the dividend cuts to the potential positives on the other side? simon: you are right to say that as a result of the politics over the last three years, the u.k. market has become significantly out of, but there was an opportunity predicated on the dividend yield of 4%. you are right to say that incomes are rising and investors will take a dim view in the near term of the significant cuts to dividends, but, and this is one of the things i cite to the note, if they move toward capital, business investments, also physicaland capital, it actually generates positivity and earnings growth, rather see it increased than decrease, despite the fact that headline news may go down. i think that i

i am manus cranny alongside nejra cehic it -- nejra cehic in london.ebounds after plunging below zero for the first time after the may contracts expire. u.s. crude for june delivery is at $21. the kospi trades lower on reports that kim jong-un is in critical condition. willd trump said he temporarily suspend immigration amidst the coronavirus as some states are preparing to reopen. larry kudlow said the president will reopen the economy if it is safe to do so. smaller gains in new virus cases in italy and the u.k. about the discussion around oil and what donald trump is prepared to do next to help us remain above zero. nejra: absolutely. welcome to daybreak europe. a devastating day for oil yesterday. we have some breaking news coming through. guide dueg its 2020 to coronavirus. this is amidst the uncertainty. it remains confident it can deliver on 2030 goals. in terms of the first quarter, beat ons came in with a estimates. first quarter revenue coming in stronger than expected. it is the withdrawal of the 2020 guidance. the abandonment of that which

aviva,th euan munro from nejra cehic, and i. ♪ nejra: this is "bloomberg daybreak: europe."a cehic in london with manus cranny in dubai. still with us is euan munro, ceo of aviva investors. instead, you are encouraging your team to look through short-term uncertainty and identify long-term opportunities where markets are pricing asset wrongly. what dislocations have they found so far? euan: it is may be easy to straight with a stock example, we feel, and a crisis like this, there is an expression that the baby is getting thrown out with the bathwater. for example, in italy, obviously, because of intensity of the crisis, there has been generic selling of italian assets. but a stock like telecom italia has been so aggressively as well. we looked at the leverage on their balance sheet, and we are looking at the fact that come in italy, as in the rest of the world, telecom type activity is skyrocketing. people are doing more videoconferences and calls, and we did not feel that that was justified. telecoms are interesting. chip stocks, people move on to more electronic means of c

nejra: absolutely.mid the politicizing of the pandemic, with it being split along bipartisan lines, the majority of americans say they don't want to rush a return to normal. coming up, we speak exclusively howarry kudlow about americans can get to work. p.m. u.k.view at 3:00 time. the central bank lowered its prime rate. beijing is expecting around $140 billion in bonds after the first contraction in decades due to the coronavirus. in the u.k., the government is furiously defending its handling of the coronavirus crisis. it comes after a sunday times story suggested that prime minister boris johnson failed to take the outbreak seriously in its early stages. the government said the article contained falsehoods. italy, spain, and france reporting the smallest number of fatalities in weeks. francis says it will unveil plans within two weeks. the current lockdown could see the french economy contracted by 10% in 2020. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700

nejra: absolutely. as you hinted at, one corporate casualty in the coronavirus crisis has been dividend payments. credit suisse has already said they would hold back on some of the payouts. ist first quarter provision the red headline to focus on. as you say, they may see more impairment come, another line dropping is that credit suisse may see more reserve bills in coming quarters so it needs a loan loss provision with the u.s. banks very much in focus with european banks, there is expected to be a challenge from european banks. there some feeling that the likes of credit suisse and ubs maybe a little bit shielded than some of the others, for example deutsche bank. there are different business models, but at the moment, european banks trading at the steepest discounts to u.s. banks on record, something to bear in mind in terms of the context going into this. manus: will catch up with the new ceo who joins us a little later, at 9:00 a.m. london time. one of the big nordics delivering their numbers. a lo

nejra: ok.you aren't really playing on a strong rebound of the economy. we were saying some wall street banks are warning the global economy of the next -- over the next two years could take a hit of $5 trillion to gdp. are you factoring in that sort of macro outlook, core at this point is an outlook like that not that useful given the uncertainties ahead? neil: i still think the outlook is -- fiona: i still think the outlook is not very useful, because we don't know how long the economy will remain closed and all these numbers are very dependent on when the economy will be reopened, and will it be capable of staying open? because if there is a second wave of coronavirus coming, he would have to close again. uncertain, the projection of the future. what we know is that in a best-case scenario, we factored in the economy closed for two months, then a slow restart. and that's still, we don't know that, that is a best-case scenario. nejra: fiona frick, unigestion ceo, staying with us. up next, soli

nejra: right.resting, because jim polson had a note yesterday where he talked about the fact that you're really seeing a big divergence in the vix and the mood index. according to his analysis, generally when you see that, it is bullish for equities. would you be taking a more cautious view on equities from here and seeing the rally we saw yesterday as nothing more than a bull trap -- pool trap -- trap? wen-wen: i would be cautious on equities. it is at the bottom of the capital structure so it is -- so high-yield is not going to do well. equities are even more at risk. noting that valuations have improved and it does not mean portfolio managers should not be looking around the margin for good opportunities and thinking about the long-term value that is being created here. nejra: yes. n-wen, you are also saying that at the end of 2019, the confident u.s. consumer was the support propping up the economy. is that support gone, in your view? wen-wen: i would say that the consumer is very challenged at

nejra? nejra: it's really interesting.hing that i would comment as well as that there is a great story on the bloomberg talking about the fact that investors and traders seem to ignoring a lot of the data and actually just focusing on the potential rebound at the end of all of this. jim mccormick is with us. i hope you can year me. i want to put that question to you. you point out in your latest notes the divergence between growth assets and the global compass it pmi. is this a market that is looking through bad data and focusing on the rebound at the end of all of this? jim: yeah. listen. we had gone neutral three or four weeks ago. a 25% increase in the s&p 500. month forward ceo is very close to its all-time high. it's a worry here that there has been good news. there's good news around the virus. there's good news around policy. you have to recognize that we are living in the weakest growth in many years. we are worried about that. manus: good morning. hopefully it is easier going now. contraction of 3% this year. asse

this is bloomberg. ♪ nejra: good morning from london. i'm nejra cehic. today's top stories. global stocks push higher along with oil. jp morgan is first up. don't miss our interview with wells fargo's cfo later today. deaths in new york state topped 10,000, but president trump says he hopes to reopen the nation ahead of schedule. he says he has total authority to do so. president macron extends france's lockdown to may 11. the u.k.'s planning its own extension this week. the daily rate of death in britain is expected to keep rising. welcome to "daybreak: europe." let's get a look at markets up to the best week or equities since 1974 last week. we had into an earnings season with very little visibility, so much so that the equity does urgent hit a record in march every it we are starting with asia.on the screen and u.s. futures in the front foot. european futures up 1.5% as well. the 10 year yield is steady. a little bit of weakness for the dollar for a third day. commodity currencies outperformed. oil is in the front foot as well. the market was a little

nejra: good morning from london. i'm nejra cehic with manus cranny live from july. this is "bloomberg daybreak: europe." the daily death toll from coronavirus declines from some epicenters. president comes there are signs the outbreak is leveling off. delay reports lowest daily for talent decent march 19 at the finance minister reiterates the efm can be mobilized for aid. up -- dips picks after an opec meeting is delayed. donald doesn't think he will have to impose tariffs on imported crude. welcome to "bloomberg daybreak: europe." looks like light at the end of the tunnel according to unicredit, but he says it is a long tunnel. the question is, how bright do you see the light? manus: and i think it depends the research that you read this morning whether it is jpmorgan saying the u.s. buyer faces -- the data we are getting through could put pressure on the vix and create a floor on equity markets. morning. nejra: if we take a look at how equities are performing, you got chinese markets closed, green on the screen in japan, a weaker yen, but we are waiting japan to d

nejra cehic alongside me in london.st back to back gains on asian equities in a couple of weeks. yesterday in the cash market. is this a rally built on containment or on formal? -- or on fomo? we can ask our guest. roll over, have a look at the bonds. of have a trillion dollars stimulus coming to bear in japan to try to fight the ensuing recession. the dollar is rolling over on a global basis. to that end, we have construct of discussions with the u.s. and saudi's with regards to oil. manus: --nejra: asian stocks are up, heading for their first back-to-back gain in two weeks. optimism grows that the outbreak may be waning in some key epicenters. the outbreak drove the benchmarks iia three-week i. further stimulus is needed. house speaker nancy pelosi told democrats this on a conference call. the next stimulus bill will be a trillion dollars and will repented funds -- will replenish funds. it should include payments directly to individuals, food stamps, and for the payroll protection plan divides loans to small businesse

♪ nejra: good morning from london, i'm never hate -- nejra cehic. this is "daybreak: europe."nd the u.k. report their deadly estate so far. u.k. prime minister boris johnson remain stable in hospital. oil extends gains ahead of today's opec-plus meeting as top producers move closer to a deal to curve output. russia says it's ready to cut by 1.6 moving barrels a day. ubs expects to report first quarter net profit at around 1.5 billion dollars. the dividend for 2019 will be paid into stages. rival credit suisse will delay half its devin. welcome to "daybreak: europe." as we head toward the long easter weekend, all states warning the global economy facing a $5 trillion hit over the next two years, greater than the output of japan. and they say global output not return to pre-virus levels until 2022. , futures have been moving around a bit overnight. we're seeing a bit of green on the screen in asia for the fourth session. a bit of a mixed picture. the 10 year yield dropping almost three basis points. foot, and front russia said it is ready to put it screwed output by about 15% pa

this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." i'm nejra cehic in london.isk off in today's session after u.s. equities hit a march high yesterday. with a negative bias. in europe, the 10-year treasury yield doesn't move too much. dollar-yen, unchanged. g10 currencies range bound apart from the kiwi, but oil taking a battering again. wti plunged yesterday, continues to slide today. rent is more steady but you are seeing the spread between june and july and it comes back to suo. -- uso. it does, indeed. when it comes to the storage capacity, jeff curry says it could be three to four weeks. where do you want to go? do you believe the rally in the s&p 500? forward earnings are high valuations? -- or high valuations? nejra: hsbc has set aside the most capital in almost nine years to bad debt as the coronavirus outbreak royalty economies of its main markets. expected credit losses swelled to $3 billion in the first quarter, almost double estimates. europe's biggest lender has already stopped its dividend falling regular -- following regulatory pressure for compa

nejra: interesting.lier this month that socgen had several charges related to goods and receivables . this is according to documents filed on the website. can you tell us a little bit more about that and any other impacts on socgen of the trouble and chaos we have seen in oil markets recently? frederic: first of all, we'll comment -- we don't comment on anything specific. price, yes, there is already an impact. is relatively mitigated. it's important to look at the exposure we have. we communicate that 61% of our inclusion in oil -- it's large companies. even with smaller companies, some of them had edged the production for 12 months. the impact we see is minimal. it depends on how long prices will last. beyond the fact that the u.s. government might change also. it's a fluid situation. we keep coming to the first quarter. we have to see. -- manus: what happens with the equity trading? it looks as it have -- if it has imploded. can you give us some color on that? we wrote a story the other day about your

nejra: great work. let's get to the first word news. putting in place a plan to start easing lockdown measures on may 4. prime minister giuseppe conte is warning a second wave of infections would cause a damagence of death doing to the economy. isernor cuomo in new york setting out a phased reopening that could start as soon as may 15 and probably will begin in new york before moving to the city. , says, as long as we act prudently, the worst should be over. --lling stockpiles making it the glut is taking tanks close to capacity around the world despite saudi arabia starting to curb output ahead of the start date for production. it is starting to cut from about 12 million barrels a day to the agreed level of 8.5 million. the bank of japan is removing the cap on the amount of sovereign debt you can buy. bank has not bought at anywhere near that level in recent years. the boj is also in the cap corporate debt, more than doubling the amount it can hold. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2

nejra: yeah.rms of what happens next, we have our eyes trained on the jobs market and how that will reverberate throughout the economy. looking ahead to initial jobless claims today. there were people earlier this week saying, look. the equity markets completely looking through bad data. just looking at the rebound on the other side. that the equity market does start to wake up to the bad data, what would you do in your allocation? david: we would do very little. our core investment philosophy has always been good quality businesses, good balance sheets. we would stick by that. we think that holds us in good stead in an environment like this. we will think more about individual stocks rather than what the market may do. our view at the moment is that this will be a very tough environment for a very long time. markets will be volatile around that. we need to focus on fundamentals. it would not change what we would do. impact onsee individual businesses again. we've had chances to buy some great bus

nejra: absolutely.f you think about it, it is perhaps extraordinary that until now the assumption seems a bit and markets at the second half of the year is going to see a recovery in a big bounceback, especially when you think about the fact that there are so much uncertainty around how the virus is going to evolve. what if we have more than one lockdown, what if we have several lockdowns? what if we have a double-dip recession or even a depression. that something the market doesn't seem to have woken up to yet. manus: gun lock is saying stocks will fall beyond the lows we are seeing in march. i think it's critically important. the technicals are the most --ortant thing, you can gundlach says were already in a depression now. imbalances inmany the global economy going into this, showing it's going to be a very different world when we come out. let's get to the first word news , top officials in u.k. now say they come -- a country hasn't done enough to test for coronavirus. experts are struggling to agre

nejra: exactly.e don't want to assign too much weight to a one-day moving markets, but it's interesting we are seeing quite a big move higher in u.s. futures, given the risks that a premature reopening of the u.s. economy could lead to a new wave of infections. some are attributing the move and futures to the fact that gilead has reported that one of his coronavirus drugs is working. anne-marie: the market looking for any good news to run with, especially when it comes to something that could potentially alleviate the crisis at hand. they are seeing one of their with some patients seeing rapid recovery and fever and other symptoms. the results coming out of chicago, they are tiny, but they do look promising when we look at some of the data. nejra: great to have you with us. thank you so much. let's get to federal reserve officials, cautioning a recovery will be slow to take hold once social distancing measures are rolled back. james bullard warns a depression .s among the possible outcomes dallas fed

nejra: daimler confirming its 2020 guidance.ted with a gradual ramp up of production and net liquidity of industrial operations down to 9.3 billion euros at the end of the first quarter, but it's really the guidance line to draw your attention to. we just had a conversation with standard chartered cfo, and we were both trying to get guidance in terms of credit loss provisions for 2020. he said it is hard to predict those, but they will clearly be higher than recent years. he would not commit on the dividend, the buyback, guidance. what we can tell you is people a lot less branding. remy cointreau sees sales dropping. , currentull year 5.25ting profit is a lower. it's a pretty stunning blowup number. revenue drops 25%. full-year profit down, so they are giving guidance, and you know where people drink remy cointreau. it's in china. he got a little bit of vw. you got the car is what happened? nejra: i know. for someone who doesn't even have a driving license. severely below 2019, that is the red headline, so seeing sales revenue s

nejra: ok.ly we saw jeff gundlach, howard marks, jim rogers focus on that much more pessimistic scenario yesterday. we will carry on the conversation with thomas for the rest of the hour. great to have you with us. thomas harr from danske bank stays with us. e.u. nations are setting out competing visions of how to deal with the coronavirus pandemic consequences, as governments are at odds over how to cook -- cushion the economy. one key disagreement, mutual rising debt, which is popular in hardest hit countries like italy and spain, but germany and the netherlands are pushing back. in the u.k., almost one million people have claimed universal credit welfare payments in the last two weeks, up from 100,000 in a normal fortnite. the benefits are designed to help people if they become unemployed or are on low income. the surge coincides with when the u.k. first imposed dramatic restrictions on business and the public. president donald trump will meet with oil executives reeling from a massive drop i

ib nejra and i suggestions for netflix. nejra: this is "bloomberg daybreak: europe."ts strongest result in history as it cashed in on lockdown around the world and added 15.8 million paid subscribers. the streaming company also warned investors the surge may come at the expense of growth in the months ahead. another interesting thing for netflix is that the unintended benefit from coronavirus when it positive quarter of free cash flow since 2014. when you look at equity markets, what are you savoring? do you have a preference for large caps in tech or are you focusing more on companies with strong balance sheets and free cash flow? >> i would say both. our locationrding within the equity markets, we prefer the most resilient companies. with low leverage in orders to make sure the company will be able to crush this task. the second thing i would like to mention about netflix as an pray forwe continue to growth. within equity markets. regarding netflix, it is something you can extend to innovative companies taking profits off this very touch period. , weuld say to summa

nejra: how do you see the coronavirus outbreak changing consumer behavior in the long-term?ark: i think long-term is probably a bit far out right now. i think we are very short-term focused at the moment to really meet demand where we can. i think this is the most essential service we can provide to our consumers. what we are seeing from china, for example, where there is some improvement here, that even in the aftermath of demand for maybe we willts, have some premium. given that we are in a recession area environment, i think that is also a safe that for some of the other communities as we emerge from the immediate health care crisis. nejra: in the short-term, based on the demanding rcn for certain products, are you stockpiling any? have you increased production of certain products like water, like coffee, for example? mark: generally, we are trying to produce flat out in the face of strong demand, but keep in mind, with logistics limitations now kicking in, and also lower employee presence as a result of illness or precautionary measures, and also enhanced safety protocol

nejra: one thing you pointed to previously was your level of -- your relatively strong balance sheetse look past the crisis we are in back now as we have been doing for a lot of this conversation, could your strong balance sheet create any opportunity for consolidation post crisis? thingien: it does one first. thanks to this i can sleep at night. i am busy all day 14 hours trying to look after all of my employees being furloughed to make sure they have medical assistance and i can assist them if they have financial distress, which we have been doing. i am looking to my owners. you are correct. having over 2.5 billion euros of cash on our balance sheet permits me to weather the storm and to basically handle long prices. i hope it will be much shorter. thanks to god we have this under our belt. that was sebastien bazi n, ceo of accor. we want to check in with bloomberg first word news. mark: boris johnson is in stable condition in intensive care. he was moved there yesterday to help them recover from the coronavirus. innson's office says he is good spirits and has not needed a ventilato

nejra: absolutely.e your global tour, albeit perhaps more remotely at the moment, what are you gauging from clients in terms of their appetite for risk? are they wanting to hold cash and sit on the sidelines right now? are they concerned with capital preservation? or are they saying, no, please go out and find those opportunities for us with the recent selloff we have had, even though of course the s&p 500's right now technically back in a bull market? sheila: i would say every client wants to talk about the investment environment and opportunity and management environment. they are all struggling to support their teams and vet new ideas, having the whole teamwork remotely. on the institutional front, many of our clients have come into 2020 expecting a challenging environment or even a recession, and had raised cash. so they came in with some money that could be put to work, but now you need to consider where. i'd say a more measured approach in the u.s. money has been put more quickly to work coming ou

nejra: glad we finally got you on the horn. thank you sticking with us.rivate banking at union bank. also dealing with some treacherous waters. oil trading lower this morning. giving up some of its gains from last week's rally. will the president or the u.s. administration get involved? cutaim of these talks is to oil production by about 10 million barrels a day. will the u.s. join? those two parties want president trump to be part of the talks. he has shown little willingness to do so. despite originally calling for the deal. he wants levies on imports to blunt the impact of the price for if necessary. >> i would do tariffs. very substantial tariffs. we are independent. matt: catch us up. expecting?rkets >> the big concern is how do you get to a deal? opecing the u.s. into an plus deal. president trump is willing and ready to use tariffs if need be. he said he has been against opec his entire life. he was throwing a lot of cold water on this. there are immense hurdles for the deal. matt: it seems like there is no anger a real yearning for free market her

nejra: one thing you pointed to previously is your strong balance sheet relative to peers.ok past the crisis we are in, as we have been doing for a lot of his conversation, could your balance sheet create any opportunities for consolidation post crisis? >> one thing first. all day 14 hours trying to look after my employees to make sure they have medical assistance, or if they have any financial difficulties. we have been setting aside 25% of the dividend. and i am looking to my owners. having 2.5 billion euros of cash on her balance sheet permits me to weather the storm and handle a long crisis. i hope it will be shorter, but it makes a huge difference. thank god we have this. was the ceo of accor. the global response to the pandemic is not just affecting hotels but air travel around the world. hour called the darkest for aviation. airlines are facing a cash crunch and looking to governments for support. air, air france are the latest carriers to get state aid packages. joining us on the phone is daniel roeska, senior analyst, sanford bernstein. how are the biggest airlines

. ♪ >> good morning from london, i am nejra cherish. infectionsnavirus surpass one million.pence says more than 1000 americans are being tested daily. we look at the economic toll in today possible job reports. tocow said it has not agreed -- goldman sachs says it is too little, too late. sayserman finance minister he is willing to offer italy and spain quick financial aid. -- a third view of declines in asia. we did see some green on the screen. led largely by energy shares. that looks to fade in today's session. coronavirus case and death toll is being focused on. the dollar heading for a weekly gain. the 10 year yield slipping a basis point. we are seeing the trump bump, a record surge, fading in today's session. it has infected more than one million people around the world, over 50,000 lives have been lost with half of the deaths occurring italy and spain. the asian development bank says it could reach up to 4.1 trillion or 5% of gdp. the u.s. vice president pence says the economy will rebound strongly after the pandemic passes. that is despite mounting unemployment. fun

nejra. morning, i think that is a really good point. on one hand, for policy support, absolutely critical. policymakers.aud policythink about the support enacted in the financial crisis, 2007, 2008, it took about two years to implement less policy support. is politically fraught. but if they are actively seeking where they need money the most. it takes a bit of time. that is incredibly important for the markets. need policyy support. need to see some better news. on the medical front. weeks, if wele of think about infection rate, things like that, yesterday was a big setback with the gilead trial. why marketsntially are reacting today. policy support. i think it is an extremely important. >> how important our earnings? it might seem like a silly question but we are speaking to ceos where they are saying point blank they cannot give any guidance. everybody is saying the first quarter is completely meaningless. how much is the market moving in earnings at the moment? >> i agree 100%. i have been in your program a couple of weeks ago. we d

he spoke to nejra cehic. >> [indiscernible] -- and from the european union policymakers in the sense that we need a prong fiscal policy response with a strong monetary policy. fiscal policy, if directed rightly, it can have a very substantial impact on the real economy quite quickly. >> yes. just to stick with the monetary policy a moment, and on the topic of taking further action, does having pepp, with essentially no limits on how much debt you can buy, reduce the need for launching outright monetary actions? >> these are not alternatives. i would not like to speculate at this stage that we would need to use the outright monetary transactions or not. toolbox, part of our and if you may recall or you may read from my book, it was critical decision in 2012 following mario draghi's now legendary speech in london in july of 2012, when he said within our mandate, we will do whatever it takes to ensure the future of the euro. that was the tool, but you may remember it also requires a program under the euro instability mechanism, and this seems to have been rather contentious among the me

nejra cehic and manus cranny talk to the bank ceo.lying risk which is representative of what we had in mind, then the witht of the covid crisis a mix of provisions and direct impacts. it is a bit of a mix of increase related to the covid crisis. in terms of perspective, there has been a lot of prudence, and according to different scenarios we give the range we expect toward this year between 70 to .8% minus drop in gdp in the euro zone, and 100 basis points in a -13% drop of gdp in the euro zone. we think we should be within this range. jra: the fact that you have set aside 820 million euros of bad loans in the first quarter, and you put any kind of number in terms of millions or billions for 2020 and terms of a loan loss provision? the prudencehave of all of the uncertainty, but also the benefits of all of the governments. france is i would say the most agile and implementing these guaranteed facilities, which we reduce the default. it makes the forecast very difficult. have 70 basis represent 500 million euros. means 3.5 billion eur

helping other countries with ventilators, france, italy, spain, nigeria, spoke to the president of nejra. many countries are calling us for help with ventilators. it is highly sophisticated. we are doing high-quality ventilators. blithe if you could say a few words? dr. adamson: i have worked with a strong team from fema, dr. birx, military, it has been wonderful to see the evidence generation in real-time, learning as fast as we can from what is happening with the epidemic to create mathematical models for these infectious diseases to understand the demand for the hospital resources. and to do forecasting for states like yours to understand how we can be prepared for what is coming. thank you for the opportunity. trump: you were fantastic. i met with blight and 20 young people, they were all young and brilliant. i think the average iq in that room was 192. it was an incredible meeting. many of them have made a lot of money in silicon valley. they dress a little bit less, in a t-shirt, they were very thick glasses for the most part but they were super brilliant people. jared really led t

nejra: one thing you pointed to is year relatively strong balance sheet relative to peers.st the crisis we been in, can your balance fort create opportunities consolidation post crisis? sebastien: that is one thing first. thanks to this, i can sleep all night. i am busy 14 hours trying to look after all of my employees being furloughed and making sure i can help them with medical assistance. owners,o looking to my but you are correct, having over 2.5 billion euros of cash on our balance sheets commits me to weather the storm and handle along crisis. butpe it will be shorter, basically we will face the wave and not be run over and thanks to god we have this under our belt. tom: extraordinary interview with the gentleman from a core accor.cor. -- daniel to rouleau will join us laterullo will join us and off these unique equity markets, ron temple will join from lazard asset management. stay with us. ♪ 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 a

nejra -- anna: looking at what is going on in fixed income markets and what is going on and treasuries in particular, i know you have been asking on the markets live blog if treasury yields can go to zero. what has been happening behind the scenes in this market? as a still performing haven? some weeks ago, there was heavy selling even of treasuries at times of crisis because people were selling anything and now people are talking about a lack of liquidity and treasuries. what is the story? >> what is going on in the treasury market now is the fed is doing all it can to indirectly keep yields low. yes, it is doing outright treasury purchases, and we are still seeing that haven demand because the path of least resistance right now for equity markets appears to be lower. these new fed facilities are coming through helping create function in the market, preventing the dysfunction we saw earlier. overnight, we did see, for example, the u.s. frees about 2% of capital under temporary changes to leverage rules for u.s. banks because ultimately, we have these sensibilities that will bring abou

nejra: welcome to "bloomberg markets the european open." morning.d today the markets say we have reasons to rally. futures point strongly higher in europe as nations outline their exit path from lockdown and italy avoids a credit downgrade. cash trade is less than an hour away. let's get your top headlines on the bloomberg terminal back to work. italy starts seeing its lockdown ease, france follow suit. boris johnson returns to his post today. adidas revenue slumps 19% in the first quarter, but bayer catches --oost with adjusted epic. ebita. surprise.ish deutsche bank says that expects to post a profit for the first quarter, but as it is unlikely to meet its leverage ratio in 2020. we are just under an hour away from the start of cash equity trading in europe. let us take a look at futures as they trade across europe this morning. looking at gains on futures of 2.3% for the euro stoxx 50 blue-chip european benchmark index. ftse futures up 1.5%. they have risen a full percent in the last hour. dax futures are also up. in terms of the u.s. we

matt: that was asml ceo peter speaking to nejra cehic and manus cranny.joined by the head of technology and communications analysis at mere about securities. these days toual have a total lack of visibility. how bad is it, and when will it improve? i found the quarter statement presentation reassuring. 700 million euros delta between the revenues in q1 and the original guidance. the fact that they think they will make up that 700 million within the next two quarters, there is no demand issue. that is the key thing to remember, especially given the high prices of the systems. and the most encouraging aspect looking through the data is 11l, during q1, had purchase orders. this is the very high-end 250 machine.uro really a supply chain issue which they are managing through, not a demand issue. that is critical to remember, because they do believe they can make up that shortfall in the next two quarters without any detriment to margins or cash flow. matt: where do you see the biggest hit in terms of the coronavirus? is the supply issue the biggest hit, or is

nejra: good morning from bloomberg. i am anna edwards in london. this is the european market open on bloomberg television alongside matt miller, who is in berlin. matt: good morning. today, the markets weather the storm. oil markets collapse. the stocks mixed after china pledges more stimulus. european futures are higher ahead of the cash trade less than one hour away. here are your top headlines. blame game. president trump raised the prospect that china deliberately caused the coronavirus outbreak. this as the u.s. pauses some tariffs for 90 days but not those on chinese steel or aluminum. crude collapse. wti sags to its lowest level in the 21st-century on concerns that storage space is running low. the demand outlook remains gloomy. signs of easing. germany begins to reopen its economy as spain, france, and the u.k. report the fewest coronavirus fatalities in weeks. just under one hour away from the start of cash trading. let's take a look at where futures are headed in europe. futures are higher, whereas u.s. futures are down. you can see the f