with us fromlsen unicredit, and we will continue. fascinating to see some of the dynamics over the weekend. get back into to lessform of socially distance amid this pandemic. coming, look for ian bremmer of eurasia group. an update on a cheap euro world. this is bloomberg. good morning. ♪ tom: good morning, everyone. frommberg surveillance," london and new york. in six weeks county, maybe five, maybe seven -- i think six weeks lift, an interesting correlation in the market. there are some exceptions. i would point to brazil as well. but nevertheless, an interesting and optimistic start on a monday. erik nielsen was thus -- with us from unicredit. there are eight ways to go here. and i can focus on italy and the unicredit mandate and all, but i really think on a monday it is time to focus on christine lagarde. what are her degrees of freedom right now in the political economics she faces? how constrained is madame lagarde? think, tom, that you probably have a central bank with amazingly free hands at this stage. and you have seen it t

not great news for unicredit. operates in italy and various other countries around europe. job cuts across europe, it seems. that saudi news come of the trump news, absolutely amazing over the last few minutes. moredetails than that -- details on that in just a moment. this is bloomberg. ♪ vonnie: this is "bloomberg markets." coming up later today, we will speak to the verizon chairman and ceo. this is bloomberg. ♪ guy live from london, i'm johnson, with vonnie quinn in new york. this is "bloomberg markets." we have seen over the last few minutes a huge surge in the price of crude. president trump tweeting that the oil markets are going to see a huge cut in output. he says, "do spoke to my friend mbs, the crown prince of saudi arabia, and president putin of russia. they will be cutting proximally 10 million barrels." let's ring in now to this conversation bloomberg's annmarie hordern. let's talk a little bit about what we know. is this actually going to happen? the russians are sounding a little bit more cautious,

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 declare a state of virus emergency with cases jumping. japan looking to fight the virus with a two-stage stimulus plan. u.s. futures on the front foot. we saw global equities decline on the week yesterday. -- you had bankamerica saying we are poised to retest the record low of 31 basis points. the yield, moving slightly higher. dollar strength for a fourth straight day. johnson, hospitalized, highlighting the challenges of fighting coronavirus and u.k.. we see a little weakness in cable in oil -- and oil weaker today with the opec-plus and others me

crisis we will be better off and we will exit faster if we do this in a more coordinated manner unicredit research suggests that spain is set to suffer more from the crisis in any other european economy unemployment spain was already at 40 percent before this crisis 800000 people have lost their jobs as a result you know madrid is now pushing for mutualization of debt and these e.u. backed corona bonds but northern european countries are resisting this where is european solidarity at this time so 6 again. the house taken its place in the measures that have been greek for the short term where we need to work a little bit more is in the medium to long term response and this is in 2 pieces 1st the budget for the next 7 years of the european union the budget that means that we will give ourselves. to invest in priorities that make more sense cost coronavirus and 2nd in the recovery plan economic and social recovery plan where we need to probably invest together in mutual manner mutual lising the investments not neutralizing that but neutralizing our investment in the future versus why we are

unicredit have to take a $900 million loan loss.is the first quarter, they reaffirm their capital buffers. that is confirmed that 250 basis points. they talk about first quarter risk, so they are taking these additional losses. italy in the eye of the coronavirus storm. arespreads over bunds widening and the risk is very you could have junk status for italy. let us get set up for the rest of the trading day. this is what is on the agenda. 12:00 p.m. u.k. time we are going to get the turkish central bank rate decision. it will probably cut interest rates by 60 basis points to support the economy. in the u.k., boris johnson remains out of action recovering from his own severe case of covid-19. raabgn secretary dominic is going to speak during prime minister's questions at 12 :00 noon u.k. time. tarmer will be in the chamber. most members of parliament are taking part by zoom. over to the u.s., earnings season continues. at&t, baker hughes. lastly, we have the 50th anniversary of earth day. celebrating that. plenty more to come. ♪ >> i

barclays is down 3.6% as well. 3 3.8 for unicredit. >>> president trump has come under attack for halting funding to the w.h.o china has urged the government to fulfill its effort. germany's foreign minister weighed in saying it was not appropriate to play the blame game adding, quote, the virus knows no boarders. he called on investors to strength ent strengthen the un. >> he began to criticize the global health body last week repeatedly accusing it of being china centric. u.s. is by far the biggest donor of the w.h.o. giving it more than $400 million a year that is on hold saying they were too slow to react. >> the delays the w.h.o. experienced cost valuable time, tremendous amounts of time more time was lost to get a team of international experts in to examine the outbreak, which we wanted to do, which they should have done. the inability of the w.h.o. to obtain virus samples to this date has deprived the scientific community. >> president trump who has been arguing with the governors about who should lift the coronavirus shutdown he has said he will work with local officials to lyft r

erik nielsen that unicredit has talked about life at the end of the tunnel, but it is a very long tunnelan oncoming train? that is another thing to ask ourselves. japan is causing -- calling for early decorations -- early declarations, and bloomberg surveillance continues in the next hour. tom keene in new york joining guy johnson in london. this is bloomberg. ♪ guy: can you hear me? i hope you can. tom: the endless echo of silence, a glimmer of good news as new york city -- europe, too, but not tokyo. japan considers emergency action against the virus. markets surge, yet the dollar resilient. when mo stressed emerging market economies call on the world bank and the imf? and it is cocktail hour in washington as the president goes in search of a malarial cure. in london, the prime minister is grievously ill in dublin.

we have seen today that unicredit has reached an agreement with the unions for 5200, that is just oneion of what we are seeing. >> it's devastating. and it is tooound soon to assess the damage because we don't know how long the economy will effectively be closed. italy,r, in the north of parts of this region have been on lock down since february. most of the country has been on lock down since early march. we are going to remain in lockdown at least until after easter, at least a partial basis after that. the effect on the economy is going to be devastating, it will be hard to recover from that, and i think that's what the politicians are getting at, what for helpturning to, after we get out of this. >> i want to thank you very much your time this afternoon. let's check in now on the bloomberg first word news. week was a record-breaking for unemployment, more than 6.6 million americans filed jobless claims last week. that was more than the most higher estimate. the the past two weeks, number of unemployment applications reached about 10 million. senate majority leader mitch mcconnell

unicredit came out with a pre-released last week and said they were at a 900 million euros.re than the 500 million now. they are assuming a 13% drop in gdp. whatever deutsche bank is doing will have to be vetted very carefully. vonnie: does this let deutsche bank leapfrog its competitors? steven: leapfrog? the revenue increase their increasing is certainly something that has -- i've spoken with a few people and everyone was like the revenue increase is pretty cool. it does seem like a good result for deutsche bank. the loan loss provisions may be on the mild side. we do not know the details. the trading boom of the first quarter does not last of the second quarter, then this may prove short-lived. deutscheof the things said today as it may fall below its ratio of 12.5%. storage -- a story today talking about some of the leverage ratios the banks in europe operate under. they are likely to get relief. the commissioner will be announcing a series of measures according to your reporting. what we know about what governments and what the authorities and regulators are doing to al

mix like this one this will not be the last one so we need to be better prepared for the next one unicredit research suggests that spain is said to suffer more from the crisis in any other european economy unemployment spain was already at 40 percent before this crisis 800000 people have lost their jobs as a result you know madrid is now pushing for mutualization of debt and these e.u. backed corona bonds but northern european countries are resisting this where is european solidarity at this time so 6 again slowly buried the house taken its place in the measures that have been greek for the short term where we need to work a little bit more is in the medium to long term response we need to probably invest together in mutual manner mutual izing the investments not mutual lising past that but neutralizing our investment in the future versus why we are european union this is where we think with our we are in the north or in the south in the store in the west of europe it's europe that needs to exit the crisis it's europe that needs to strengthen its internal market and its ability to be a glob

unicredit has a 50% contraction for spain and italy.s are very high. , and soany, the dutch on still prefer the -- matt: the french saying for every two weeks of confinement, they lose 1.5% of gdp growth. that shows you how serious the lockdown hit the financials. we are hearing some countries are easing the lockdown across the eu. how is that going to work? maria: every time they go into a lockdown this size, the economy is lights out. you make the decision that you are going to sacrifice your economy to keep people safe, and that's what the europeans have done until now. when you look at the french situation, now that you mentioned the central bank, there has been reports today suggesting that emmanuel macron is not a board with the idea of an early end to the lockdown. that would perhaps signal to people that they can start going out on the streets, and you could see the curve spike up again. he's not convinced about that. you hear the same thing with the italians. there have been reports that they are looking at opening some of the

the frontrunner was unicredit. closed in the month of april.not foresee that when we had the conversation in march. we are seeing a very slow opening and that means we need a different balance sheet with a closed down world. i think what we have done is make certain we have a healthy balance sheet. you say things have changed in the last five weeks or so. you had insight into what was coming because of what you had seen in china already. would it be safe to say you have been caught by surprise in terms of how bad things have become for europe as a global business? that would be a gross misstatement if you were to say that. march,e third weekend of i don't think anybody would have expected the world shut down. what we did see were early indicators. that the world would close down over three days, we did not foresee and i don't think anybody else would foresee. what we have done -- matt: i have to -- i have to disagree. i had a flight back home march 15 that i knew the week previous i was going to have to cancel because i was afraid i would not b