bnp paribas is full-year earnings take a pounding from the coronavirus pandemic.e will bring you our interview with the bank's chief financial officer. recovery mode. goldman sachs and morgan stanley see signs of the world economy is bottoming out. could growth bounceback in the second half of the? we are just not -- half of the year? where just under an hour away from cash trading in europe and the u.k.. let's take a look at where futures are after the pounding we took yesterday. than 4%fell more yesterday before u.s. stocks rose. we have european futures falling, asian stocks higher. ftse futures up 1.3% and dax futures up a little bit more than that. take a look at u.s. futures. we see gains there as well. s&p 500 many contracts currently percent quarters of a and dow jones futures up 0.9%. these are today's top stories from the bloomberg terminal. an internal u.s. government projection is pointing to a surge in virus cases. it shows the outbreak of vastly accelerating by june -- accelerating by june to more 0,00 200,000 cases and 25 deaths. the white house is

that was guy johnson, with the cfo of bnp paribas, lars machenil.oming up, we will ask about oil, and about the values out there, and of course what it means for market valuation. this is bloomberg. ♪ francine: this is "bloomberg ."rveillance i am francine lacqua in london. let's get back to john normand of jp morgan, where he is head of cross asset fund mental strategy. i know we spoke about the legality or not legality in terms of the ecb and the qe program. i want to get your thoughts on how damaging this could be. does it show that german courts are not, you know, and solidarity? could this be the start of the end of the euro project if countries feel they do not have enough support? does it rain in what the ecb can do? john: i think it is the beginning of the potential court challenge against the program because there has been a number of ways the ecb has constructed its programs to try to essentially allow debt monetization, which otherwise is prohibited by the lisbon treaty, and what happens with the newest incarnation of that, it was the sub

paribas.g daybreak: europe market open is up next. ♪ there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. ♪ anna: good morning. welcome to "bloomberg markets: "uropean open. i'm live in london alongside matt miller in berlin. matt: good morning. the markets say lift the lockdown. europe and u.s. futures rise. a number of economies move toward easing restrictions. let's get your top headlines for you off the bloomberg terminal. europe's new normal.

fillion, bnpves paribas usa ceo.een getting lots of indicators from other big banks on how they are going to start reopening their business. do you guys have a plan yet for the u.s.? it? is jean-yves: thank you so much for having me. it is definitely an unprecedented situation. my first priority in my position as ceo is ensuring the safety of the staff. it is important to mention that we have 95% of our staff working from home, and the bank is open for business, moving full speed serving clients. return to the office is something we are planning on with a lot of consistency and focus. i would say you should expect it to be gradual. get our first, we will staff back on premises, and assess how the pandemic evolves. we'll do it following state guidelines and policy, but we are engaging with employees, and their feedback is important to us. i see three concerns coming from them. the first is around commuting. the second is around testing. there's going to be different kind of testing. the third is around social distanci

paribas shares rise resiliency. we speak to the chief financial officer. "bloomberg surveillance." i am francine lacqua at the bloomberg european headquarters in london. we are waiting to hear from the german court of legality, coming up shortly. meantime, this is what i'm looking at in markets. the markets are on tenterhooks on this ruling from the german government. i have to say, u.s. futures are climbing. sentiment being helped by expectations more economies will move toward easing of lockdowns. oil on the course for its longest winning streak in nine months. what else i am looking at, earnings. we had b.n.p. paribas rising, setting aside problem loans but warning full-year earnings will take a pounding from the pandemic. rallying after it reported a 35% plunge in first quarter profit. plenty more on that, and of course we are waiting for that ruling on the legality of qe from the german court, but first let's get straight to bloomberg first word news, with viviana hurtado. viviana: we begin with an internal u.s. government projection showing the outbr

paribas,ates to b.n.p. i don't expect more than 15% back on premises.s no absolute pressure or urgency to get back on premises. the bank is functioning very effectively. had you told me we would be operating successfully with 95% of staff working from home, i would have been hard-pressed to believe you. >> no kidding. i'm with you on that. i wonder how that comes out on the other end. structurally, are you looking at a smaller rental space, smaller office space? less people permanently in the office space? think -- >> i think you are highlighting another important point, which is what kind of structural changes we might be experiencing. i think working from home is a trend to last. there's going to be collateral consequences. i do believe that companies will review their real estate footprint in very dense urban areas. we are going to be reviewing business. i see all the structural changes coming from my clients this time. for economies, for independence, ratell as the unemployment is increasing to job creation. is good insight to get from your clients.

the warning from bnp paribas was significant.hey have been hit by three main andors associated with it, there is significant provisioning that goes along with it as well, though not as big as in the united states. last night, i talked with the machenil. lars risk backed upof by 500 million. the second effect is a one-off -- related to to italia investments in the p&l. they went down. this is a negative effect that would normally pay for that cut when the market returns. the third impact of covid-19 is when it comes to the decisions that have been taken by authorities to strongly recommend that dividends would be paid, which has an impact on our equity and derivatives activity. those are the impacts that weighed a bit on the results. guy: do you think we will have to see further provisioning? to give you a sense of what you think the trajectory of the nonperforming loan curve is going to look like. it, wef you look at have seen confinement that has been happening. that is what is weighing. the question is how we get out of this th

paribas. up next, we'll talk to the c.e.o.germany's merck to see how long he thinks the pandemic will last. ♪ these days staying connected is more important than ever. so we're working 24/7 to maintain a reliable network, to meet your growing internet needs. we're helping customers who are experiencing financial difficulties stay connected. we're increasing internet speeds for low income families in our internet essentials program. and delivering self-install kits to your door. nos comprometemos a mantenerte conectado. we're committed to keeping you connected. for more information on how you can stay connected, visit xfinity.com/prepare. ♪ anna: welcome back to "bloomberg markets: european open." still half an hour to go into the start of the european equity trading date and it looks like it will be a negative one. let me tell you about some of the things that are happening in the day ahead. 's monthly oil report on the ecb publishes its monthly bulletin. 1:30, weondon time-out will get u.s. initial jobless claims for the week

asidebnp paribas sets more cash for loans, and sees net revenue down 20% this year. >> bnp paribas is earnings will take a pounding, also posting a $200 million hit at its trading unit. alix: this comes as other companies continue to take steps to me to get the crisis. about airlines will cut 3500 positions, while car rental company hertz prepares to file for bankruptcy. >> there's a lot more distressed players today. it will help clear the market, but it also means that there aren't near as many opportunities. alix: sam zell echoes warren buffett, saying there aren't as -- during an out turn because the fed acted so decisively. enoughnow says it has liquidity to withstand current conditions until december 2021. >> we are trying to figure out a lot more on what the implications are of the court ruling that part of the quantitative easing the ecb has put in place has been judged illegal. alix: germany's judges say that some parts aren't backed by eu treaties. >> it is a bombshell really. they are basically saying overall, there is no monetary financing, which would be illegal, and not

paribas sees a softer slower recovery ahead than initially hoped.andemic will also change the way it views is workforce with changes to real estate and travel. the u.s. head told us how that is affecting is returned to office plans. >> we have 90% of our staff working from home and the bank is open for business moving full speed serving clients. return to the office, we are planning on very -- with a lot focus.istency and i would say you should expect it to be gradual and through phases . we will get our staff back on premises and we will assess how the pandemic evolves. we will do it with state guidelines and policy. we are engaging with employees. feedback is important to us. i see three concerns. one is commuting. the second is around testing. there will be different kind of testing and the third is around social distancing once back on premises. some of the other banks have been looking at setting up a temporary office in the suburbs are only bringing back capacity -- or only bringing back capacity to -- do you have any specifics? havech busines

daniel morris, bnp paribas investment strategist, will be joining us. that is next.omberg. ♪ mberg. ♪ ♪ from london, i'm guy johnson, with vonnie quinn in new york. we are counting you down to the european close here on "bloomberg markets." european equities just above the flat line this morning on the back of what is happening in china and hong kong come and we see the impact on what has happened with the chinese equity story as well. the hang seng overnight down by 5.5%. european equities now back to flat. we've got enemy copper -- we've got l.a. me copper -- we've got lme copper down by over 2%. the mix in terms of the sector story for equities here in europe i truly reasonably positive -- in europe actually reasonably positive most european markets have outperformed u.s. markets this week. vonnie: here in the u.s., we will have to see how the next fee hours go. right now we are down slightly for the s&p 500

it's notable in hsbc and bnp paribas providing this.r banks haven't told us how many exemptions they have in this period. it's quite possible there's a lot of other banks that have had the same types of failings. we just don't know about them yet. it's more than likely, in a few months, we will see the same kind of reports coming out of banks. got,seem, from what we've they are pretty reasonable explanations for why they have seen these types of moves. you don't get a lot of information from banks for exactly what's going on because of commercial sensitivity and all of that. harry, really interesting story. it'll be interesting when the details start to emerge. harry wilson. this is bloomberg. ♪ w?w?uhió'ñó guy: from london, i'm guy johnson, with vonnie quinn in new york. this is the european close on "bloomberg markets." coming up, we have "balance of power" with david westin. what's he going to be talking about? one of the big stories, disney. analyst will be joining us. one of the big stories on your side of the pond. vonnie: absolut

you have a good set of results for bnp paribas. they put about half a billion euros for loan loss provisions here looking ahead because of the impact of covid. they mention the ratio is still up 12% warning that the net profit for the bank in 2020 could be down between 15 to 20% for the bank with the cfo asking about the reaction and the commitment to the access to liquidity and whether in his view the bank was doing too much or not enough >> if you look at the banks today, banks are really the instrument to support the return of the economy it is important. it is important that banks can do this and do this in a right way. a look at the supervisors on one handcrystallize and before taking that out. on top of that, they are sure that monetary policy can find its way through the banks. if you add it all up, it is something the authorities are really doing so that the banks have played their roll in getting out of this covid-19 crisis >> there are questions on what kind of recovery they are going to get and maybe the damage done to t

that is daniel morris, senior investment strategist at bnp paribas asset management. let's check global markets now. here's taylor riggs. taylor: big companies are really outperforming some of the smaller companies. you see that by the s&p outperforming the equal weight index. health care also a sector we are looking at. suppressorn immuno remdesivir gilead's in a late stage trial. a vaccine booster is also moving the health care sector today. lower after president trump is expected to sign an effective order that would make social mediahold companies liable for curbing free speech. twitter getting hit harder on that. a few earnings movers i wanted to look at. dollar tree, big earnings boost. comp sales are up. customers really going there. but when looking to restart production for the 737 max. moderna extending the deal to boost their vaccine candidate output, certainly giving metal lift. finally, you mentioned oil at the top of the hour, so i wanted to take a look at a terminal we are showing here. oil inventories, you can see a big buildup, which means people are

paribas, ies to bnp don't expect for phase one more than 15% back on promises.ncy to get back on promises because the bank is really functioning very effectively. had you told me to it half months ago that we would be operating successfully with 95% of the staff working from home, i think i would be hard-pressed to believe you. alix: no kidding. been hard-pressed to say i was broadcasting from might homes though i'm with you on that. i wonder how that comes out on the other end, structurally. are you looking at a smaller rental place or office space? there was a bombshell yesterday from facebook saying that would be their way forward. >> your highlighting another is whatt point which kinds of structural changes we will be experiencing. working from home is going to be a trend to this day and there -- workinglateral from home is going to be a trend to stay and there will be a collateral footprint. i do believe as well we will be reviewing business travel. we are getting used to doing this so digitally. i see the structural changes coming for my clients this time.

turkey lifting a ban on lifting a band with bnp paribas in the u.s.y met local obligations to turkish lenders. this is according to people familiar with the matter, so we will spend some time understanding exactly what that means for euro markets. turkey imposing the band last week after market interventions, and rules failed to stem. we will have plenty more on turkey and on the u.k.. this is bloomberg. ♪ francine: u.k. prime minister boris johnson announces his plan to restart the economy. restrictions on movement will be eased wednesday. some shops and schools could open in june. in the u.s., president trump urges americans back to work while combating a coronavirus outbreak amongst white house staffers. vice president pence is self-isolating following his press secretary's diagnosis. and the european commission threatens to sue germany, while president ursula von der leyen issues a strong rebuke over the constitutional court's ruling on ecb bond purchases. hi, everyone. this is "bloomberg surveillance." i'm francine lacqua, here in london. tom kee

bnp paribas estimate some 30 million people in china were unemployed or furloughed as a result of the pandemic, so they are targeting 9 million new jobs, which is significant, but lower than last year's 11 million. they will commit to this phase one trade deal with the u.s., which is a positive sign that there is a thin thread of --ration amid teary ration thread of cooperation amid deterioration in every other area. more u.s. goods purchases amid this economic backdrop. francine: selina, thank you so much, selina wang from beijing. coming up, despite the tough talk from president trump, china is still going to enter the phase of the trade deal. we will talk u.s.-china relations and what they mean for the global economy. that is coming up next, and this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. now let's get straight to the bloomberg business flash is in new york city, here is ritika gupta. good morning. ritika: good morning. the pandemic will probably reach the pandemicus -- will probably reach the p

we talked about bnp paribas' forecast where you may look at 100 50 million people unemployed in chinaurloughed. the official jobless rate is expected to improve to 5.8%, but that only accounts for urban workers, so that is the key caveat. what this means is we are looking for more policy responses and the international people's congress, but for more details on that, the pboc has a more powerful set of policy measures, and we are waiting for those details. a trimming of the medium-term that we would be looking at yesterday. that may happen today as well. the retail sector remains on the pressure -- remains under pressure. emily: tom mackenzie there in beijing. of course, we are awaiting the slew of china numbers. we will get more analysis on the chinese economy from guests later on. let's get you a quick check of the latest business flash headlines. the ok tos has won enter china's credit rating market. says it will be allowed to conduct bond raising operations in the chinese market. the news comes as a record amount of bonds are offered with chinese companies and local governments ra

very strong gains across the sector a socgen shares up paribas is up higher on the back of more support from the french government and tension to the auto sector a lot of optimism. the german rally up 4% they will come to the market for fresh capital. uk names rallying strongly this comes on the back of a very strong session for a u.s. bank i want to give you a look at what we saw in terms of u.s. movers here. goldman up 9%. citigroup up jp morgan up 7%. we heard from jamie dimon, shares up after he called the bank very valuable at its current price. he famously bought shares in 2016 close to the bottom of the market at the time the bank boss said he was not trying to call the bottom but added that there was a very good chance of a recovery and cautioned that it was not yet time for share buy backs. >> caller: i think you've got to see the white of the eyes of the recover from you start buy backs. companies are all of a sudden retaining a lot of capital yes, i think you may see people start them but they probably won't be the size you have seen before >> that was jamie dimon speaking ye

paribas saying as many as 100 30 million people may have lost their jobs or been furloughed as a -- 130 million people may have lost their jobs or been furloughed as a result of the coronavirus. the unemployment rate is at 6%. most economists think it is double that. the legitimacy of the commonest party will be front and center as well. anything else we hear about trade relationships with the united states and the defense budget as well. there is a since the pla will be pushing for more money this year. there is a lot to look for when delivers thatague work report at some point in the next few hours here in beijing. lot on the agenda. tom mackenzie continues to bring us the latest. as we get that news, we will for getting plenty more perspective, and we will be joined by our guests, including daniel rosen in half an hour's time. krach at 7:00 a.m. hong kong. and joining us later will be the u.s.-china business council as well as views from eurasia. next, we hear from one stock picker and get their view on where investors should be looking as the world struggles with the coronavirus cri

we know that was a point of difficulty for both bnp paribas on socgen on the trading side. credit agricole more to diversified.- more richard clarida is optimistic in his outlook for the u.s. economy on that front. we will discuss that, next. this is bloomberg. ♪ manus: this is daybreak europe. i am manus cranny in dubai. nejra cehic alongside me. just how severe the slowdown in the u.s. will be. clara data committing -- clara data -- richard clarida committing to do more. china comes back on board to the s&p 500. it really slashed into the -- so we are playing recovery. there seems to be a little bit of criticism of the ecb bond buying. we will have a look at the bond market and dollar-yen at a seven week high. crude recovers. you did put on 20% yesterday. have we reached the nadir in terms of demand instruction? stay tuned because we have our guest joining us from blackrock to talk about commodities. to the fed story, the vice chairman, richard clarida, as i said, is optimistic that u.s. economy will begin to recover in the second half of the year. that is despite acknowl

bnp paribas say 131 million or and it isobs or really closer to 12% for the jobless rate.hey see the market will shed 10 million positions when the government hoped to add 10 million. all of this is going to weigh on consumption and you have got the external picture west remains bleak, china facing a serious spill back with the global demand picture remaining week. major economies that are most affected by the virus, including the u.s., asia and europe, will pose a drag on china's output. we heard from the finance minister in china a few hours ago in the people's daily saying the virus hit the government revenues and the deficit will be increased. we are waiting for the details on that at the national people's congress next week. haslinda: tom mackenzie in beijing. coming up, coronavirus creeping up as china seals off areas near the north korean border. macau has 50 cases. this is bloomberg. ♪ newsad: of it of breaking -- a bit of breaking news, korean air seeking to raise one point trillion -- 300,000,000,001 -- 300 billion won. this sharen from sale. and some government

okay year for european financials, but this year has been terrible i'm seeing blue chips like bnp paribasredit suisse down 40%. these are businesses that have been able to protect and in some cases like credit suisse in particular grow their earning streams despite the low rates. as a result we're trending 30% or 40% of book value, which is substantially below previous lows in 2007, 2008, 2009, when they had a lot less capital. they're safer, diversified their earnings streams and their valuation multiples are as low as they've ever been this is why we believe there's such an opportunity here >> david herro, thanks for joining us this is the last commercial we take before we head into the close, which is just 16 minutes away down 2.5% on the dow every financial plan needs a cfp® professional -- confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org. they're all possible with a cfp® professional. there are times when our need to connect really matters. to keep customers and employees in th

into effect on june 6 and effectively make it much easier for institutions like goldman sachs or bnb paribas to vest in stocks and bonds. pointing that trade deal is progressing and china has been buying u.s. soy and meat and has removed restrictions on some u.s. farm goods. finally, what i thought was interesting, this whole week, we've had a lot of reminders of the importance of the u.s. consumer to american companies we had another reminder today because for disney, the shanghai park shoeold tickets. they sold out for the first day in three minutes and for the whole week in one hour shanghai disney was being discussed a lot. most people said they wanted to get tickets because they didn't want to have to wait a long time in lines people are excited to go to the park on monday >> wow, that is not what i would have expected. >> it reminds me of the nfl draft. it was like, i would never watch that the day it was happening, i was like, it's three hours until the nfl draft. we are ready for something to do >> we all need to be entertained. >> yeah, the background is that chinese people have bee