the commission president ursula von der leyen said this. final word of the eu law is always spoken in luxembourg. nowhere else. -- european mission commission's task is to safeguard a proper functioning of the year of the euro system and unions legal system. we will look into the possibilities of next steps which may include the option of infringement proceedings. 's from newtone investment management and is still with us. eu to germany, germany to the south of europe, but i emphasize south of europe. breakup risk is on the table. how do you play that? is it real, or is it media hype? catherine: i don't think it is -- it is certainly not out of the question we could see a breakup of the eurozone. done iss outbreak has it has led to a heightening of animosity among the sovereign europeans who feel northern europeans have let them down because they've had to rely on china and russia for their protection equipment and they feel at the beginning of the crisis very abandoned by northern europe. of course, you've always had a big convergence of p

ursula von der leyen has come under a lot of pressure.criticism that a times she seems overwhelmed by the size of the crisis, and she is perhaps too deferential to europe and has not grown into the role. before she was at the european commission it was jean-claude juncker, a man who could hold his own versus angela merkel and emmanuel macron. in a way ursula von der leyen does not seem as strongly juncker.d as that is one issue. she will have to strike a balance between two things. then it will depend on whether the smaller countries such as the netherlands or austria agreed to the loans program. that is something up in the air. they are going to put forward a counter offer the commission to consider. guy: we will leave it there. it is all getting convoluted but very interesting. bloombergs maria tadeo joining us from brussels. european markets now shut for the day. the ftse 100 finishing near session highs, pushing up quite nicely toward the end of the day. a little dip first thing but the auction continuing that process, up over 1%. the

francine: what are the options of urszula vendor line right now -- of ursula von der leyen right now?or my letter, i received a -- the case is clear. it will be very fast, declaring purchasingive bond program be on the competence of therefore,stem, and they will -- that is a clear case of procedure. however, it would not make sense to impose any fines. this is only to restate the legal position, finding based on the court judgment itself seen as an infringement of the independence of the highest court in germany. this would not be wise, and i am not -- francine: you have been critical in the past of the ecb, especially when it comes to the transparency of its actions. what lessons should the ecb draw from this? does it need to speak to citizens differently to explain exactly what it is doing? sven: yes, i think that is quite right, and this is also true for the european commission. we had lots of critics from different angles concerning the monetary policy, and i think we did not do enough in the euro system, in the european commission, but also in the european parliament, to take ser

what do we expect from ursula von der leyen and ecb? en, this is her biggest moment since she has taken over the european commission. there has been a lot speculation about what will be unveiled today. what kind of fiscal stimulus and what kind of joint debt sharing burden are we going to see from european member states? there are three things to focus on. one will be the size of this. just how big is the budget going to be and how big will the recovery fund be? german and french are pressuring for 500 billion euros. lookecond factor really to is the compensation of it. are we going to see mostly -- grants, as germany and emmanuel macron are pushing for, or do we see it as long-term? ursula von der leyen already entered that we are looking at trillion euros that will be unveiled today. matt: what about the pushback? i have been asking guess about formerkel-macron proposal the last couple of days. everybody brings up the frugal four. it is a phrase that i think people love to use. but also, there are some countries in the european union t

we may get part of the answer in a few hours time when european commission president, ursula von der leyenncement will build on a plan proposed last week by germany and france for a $545 billion european recovery fund. joining me now is holger schmieding, chief economist, berenberg bank in berlin. thank you so much forjoining us. what do you expect the size of this fund to be? the fund will probably be $500 billion euro, a recovery fund however it will likely be part of a bigger programme adding up easily toi bigger programme adding up easily to i trillion euros. recovery fund plus a few other things which the european commission will add to that, including probably some creative accounting such as redirecting money which the european commission, the european commission, the european union was meant to spend anyway to come up properly with something like i trillion euros overall. how difficult are countries like france and germany to get everybody in the eu on board to have consensus? it is extremely difficult but that is part of the course for the european union and many other institution

the head of the european commission, ursula von der leyen, has set out proposals for a 750 billion eurof grants and loans to rebuild the european union's economy. two—thirds of the amount would be for grants to member states and businesses worst affected by coronavirus, with the rest in loans. and, spain is starting ten days of official mourning for the 27,000 people who have died during the coronavirus pandemic. king felipe and queen letizia held a minute's silence, as well as the spanish parliament, the police and members of the public. we'll have more on the those stories in a moment, but first here's our health editor hugh pym on the track and trace system in the uk. it's billed as a new phase in the battle to contain the virus, targeting people at risk in the areas where they live so restrictions for others can be progressively eased. it will be a big ask for some — those who have been in contact with someone who tested positive will be told to self—isolate for m days. nhs test and trace means we can start to replace the national lockdown with individual isolation for those who hav

meps in brussels on friday called for a two trillion euro stimuluss and- commission president ursula von der leyen has said she w wants t least one and a half trillion at her disposal. clear estimates however put franco german plan people expecting it to be three hundred twenty billion to the five hundred billion euro figurure is definitely a compromise on the amount. of france has been at the forefront of efforts to convince you to issusu this common european debt. it's something that hard hit on country expedient italy verery hard for but it's something that richer northern countries like germany. and the netherlands have pushed. hard against. it looks like germany is finally on board which is a big step five hundred billion euros in that common europeanan back. directeded to those parti. he's a man you might. the money will not need to be re. spending t that is grant now loans. number is germany be responsible for about 27%7% the debt that was incurred by the e. u. that is. a level with its usual but contribute to. make sense since the plan is for the e. u. to repay the money dear future europe

the head of the european commission, ursula von der leyen, said the most courageous approach to the crisisof the who said, he welcomed an independent evaluation. here's his response. i thank member states for adopting the resolution which calls for an independent and comprehensive evaluation of the international response, including but not limited to who's performance. as i said yesterday, i will initiate such an evaluation at the earliest appropriate moment. well earlier — i spoke to our global health correspondent tulip mazumdar. i asked how china will be impacted by the resolution. china wasn't specifically mentioned in this resolution, but if you are looking at how this pandemic started, what happened in those early days — and there has been criticism not just from the world health organisation, notjust from the us, i should say towards the world health organisation, but australian and other countries as well saying saying they were too close to china, that china wasn't transparent at the beginning, and get the who did continue to praise it. i think there will be some investigation int

the head of the european commission, ursula von der leyen, said the most courageous approach to the crisislcomed an independent evaluation. here's his response. i thank member states for adopting the resolution which calls for an endeepened and comprehensive evaluation of the international response including, but not limited to, the who's response. as i said yesterday, i will initiate such an evaluation at the earliest appropriate moment. so how will china be impacted by this resolution? tulip mazumdar is the bbc‘s global health correspondent. china wasn't specifically mentioned in this resolution, but if you are looking at how this pandemic started, what happened in those early days, and there has been criticism notjust from the world health organization, not just from the us, i should say, towards the world health organization, but australia and other countries as well saying they were too close to china, that china wasn't transparent at the beginning, and yet the the who did continue to praise it. i think there will be some investigation into that as well, and certainly the us will be l

but basically, ursula von der leyen is saying europe trumps germany. what are her options now?as very fewshe options. she is the president of the european union and she has to defend its integrity. she has to take action one way or the other. she has to talk to the germans. she does not have to file a suit immediately. she can initiate talks, try to stop the conflict somehow. if that does not work out, she probably has no option but going to court. what can germany do to avert this conflict? is there interest in averting a conflict from the german political establishment? karen: of course. germany has no interest in escalating this. that is the question, how do you do it? we are talking about a ruling that is out there from the top court, a very political court and a very independent court that has been critical about its own government a lot. if the german government wants to help throughout this crisis, it cannot just overturn the ruling. imagine howult to you negotiate something like this. it is really a quagmire. i have no idea how to solve it. that's going to be the diffic

for the fact that there was more than a nod i think to the way they were doing this, with a ursula von der leyenfrom paris to germany, saying they are sea, paris to germany, saying they are sea , grassy as paris to germany, saying they are sea, grassy as to the french and spanish premises, many technical problems in there as well —— saying merci and gracias. it was either pre—recorded or a life pitch, there was a message from the leader, for example emmanuel macron, the french president, saying this has to be for a vaccine that is universal, for eve ryo ne a vaccine that is universal, for everyone to use in this $8 billion that has to be something everyone can that has to be something everyone ca n a ccess that has to be something everyone can access and it is affordable. with that came a pitch from every single country. one country notably absent from the summit was the us. the trump administration says that thanks to its own efforts — dubbed ‘0peration warp speed' — the us is working urgently to develop a cure for the virus. last night, president trump predicted that american firms would devel

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 keene eight, in new york. that therse remember terrible figure in terms of the unemployment we have in the u.s., as economies slowly reopen in europe, but very carefully. we figure out exactly what ideally is the time to reopen while at the same time saving lives. tom: i think the reopen thing is really germane this morning. i love how the french call it a move to "the confinement -- -confinement." in america, yesterday afternoon, there was a real understanding of confinement at the white house. dr. fauci worrying about origin, and also the vice president of the united states worried as well. that was sobering on mother's day. francine: it certainly was. let's get straight to first word news in new york city with ritika gupta. take a co-president trump -- ritika: president trump has a tough job this week, trying to convince ameri

the head of the european commission, ursula von der leyen, said the most courageous approach to the crisisd an independent evaluation. here's his response. member states are adopting the resolution which calls for a enquiry into the international response including but not limited to the who's response. i will share any such evaluation at the earliest appropriate moment. so how will china be impacted by this resolution? tulip mazumdar is the bbc‘s global health correspondent. china wasn't specifically mentioned in this resolution, but if you are looking at how this pandemic started, what happened in those early days, and there has been criticism notjust from the world health organization, notjust from the us, i should say, towards the world health 0rganization, but australia and other countries as well saying they were too close to china, that china wasn't transparent at the beginning, and yet the the who did continue to praise it. i think there will be some investigation into that as well, and certainly the us will be lobbying behind the scenes very hard for that to be part of this invest

how serious is that court in topping what madame lagarde and ursula von der leyen and others would like to do? peter: i think it is a very important question. i think there are different ways how this can go. it is very important to see what decided. actually the court did not say that -- sorry, the first step is to say the fed and the bundesbank cannot participate until something has changed in the next three months, and that is the top line. the crucial thing is that the european court has not properly examined whether the ecb took all potential options into account when it made its decision. that is the main charge. and i think that, frankly, relatively easy to overcome because clearly the ecb has done tons of analysis. potentially every nook and cranny in this thing. the question is whether they will be willing to say, all right, we presented analysis and we played ball and here we go. what i reckon is going to happen going forward is that it is going to be treated like an internal german problem where the bundesbank taste charge of this -- takes charge of this, and they go ahead an

discuss theill economy in a webinar and ursula von der leyen will address the european commission --ean parliament. tom: right now on the litmus paper of the system, a gentleman who is particularly astute in the trenches of market foreign-exchange analysis, he is adam cole with rbc in london, and always provides a really interesting perspective away from the certitude of consensus. consensus most get wrong this wednesday? adam: i think the creeping consensus into markets has been -- and i'm thinking of powell in particular -- this creeping consensus of negative interest that will goicies into effect. that will become more entrenched after the reserve bank of new zealand opened its arms to the policy. so i think what we see in market pricing and what we see from market participants is that the fed is starting to contemplate using negative rates. adam, this is so, so crucial. thank you so much for bringing in new zealand. the flies flying around here are the new york honed flies that come out in may and fly across you while you are on air. adam, i want to talk about the snowball effect

francine: that is of course ursula von der leyen.in, with italy, has suffered the worst of the economic -- of the coronavirus pandemic. joining us now is jose maria roldan. thank you so much for joining us. when you look at some of the concerns out there, when you look at some of the concerns over banks, and maybe there is a is thereegulation -- anything systemic that worries you in spanish banking landscape? michael: not -- not in particular. everything is going to be confronted with rough waters in the coming months. of course, the economic deceleration that we are seeing across the world, and the type of simultaneous crisis is going to have an impact on balance sheets, on quality. i think we are prepared in terms of solvency, liquidity. we werear better than 10 years ago, so i think that is think there are going to be rough waters, but we are determined not just to weather the rough waters, but also to do what we need to do ourt now, which is serve clients in getting them through this complicated environment. francine: what does i

commissionpean president ursula von der leyen unveiled a 750 euro package to support the european economyour colleague, stephanie flanders, who is the senior executive editor for economics, is here to take us through the package. thank you for being with us. in the past you said it is a question of the ecb, but if the commission can deliver this, this can make a difference, put ?nto it -- couldn't it stephanie: i have even asked season commentators that this might be one reason by 2021 only known for covid-19 which is a striking thing to say. this is a historic move by the european commission, and as you know it comes after we have had the leadership of the two most important countries in the european union, france and germany, president macron and chancellor merkel coming together and proposing a similar plan last week. we know something like this has the support of those key players, which makes you think it is quite likely to happen. the importance is this is serious budgetary support, bakeshop of it in grand form. real money, not loans with a lot of strings attached, which is designed

you mentioned that big bailout proposal from ursula von der leyen. it is all about the money pouring into these markets today. that is a very interesting develop and from deutsche lufthansa. it has decided that it cannot take this aid that would have been granted to it by the german government and the european union because the conditions are too onerous. we will bring you more details, but what it means for the future of deutsche lufthansa. the events on both sides of the atlantic. joins us.h it seems like the u.s. has to worry about china, the u.s. has to worry about europe right now. everything is falling apart just a little bit. and yet, the s&p 500 is up. what is the market optimism based on? terri: good morning. there's a lot of optimism, at least if you look at red versus green on the charts. i think there's been a lot of headlines about states reopening, counties reopening, potential vaccine, but what is driving this is the fed buying treasuries, the liquidity they are injecting into the markets, what the government is doing. make no mistake,

thisis is european comommission president ursula von der leyen. >> at a time when we are sitting further apart than usual, the world has shown it is standing closer together than ever before. and in the space of just a few hours, we have collectively $7.4 billion -- 7.4 billion euros. and all of this money will help kickstart unprecedented global cooperation. amy: that isis european commmmin prpresident ursula vonon der le. the ununited nations said the success of the initiative wowoud be measured by the equal distribution of any treatment. in russia, questions abound after three healthcare workers have mysysteriously fafallen frm hospital windowsvever the pastst two weeks. two of them haveve died, while e is hospitalized. the hospitalized doctor previously pososted video on social media calling out the lack of medical equipment and the fafact he had to keeeep worg despite testing positive for covid-19. russian authorities say they are investstigating all ththree cas. coronavirus cases contntinue to surge in russia, with overer 155,00000 confirmed infectio a d over a reported 1400 deaths

commission president ursula von der leyen said the final word is always spoken in luxembourg, the eu's highest tribunal. she is really hoping to avoid opening a real can of worms, considering that the german decision challenges the supremacy of european union judges. another risk is that other nations challenge the authority, and that could go on to threaten the future of the common currency. the mental -- but in the middle of all of that, christine lagarde says her institution is undeterred, and the ecb will do whatever it needs to do to carry the euro zone the crisis. alix: thanks so much. let's now turn to central bank reaction to the crisis. they are continuing to fight the economic downturn. the most recent is china's pboc, which said it will resort to more powerful policies. michael, bloomberg international economics and policy correspondent, joins us now. michael: and credit provision over always growing. china again teasing, not giving us a lot of details. the pboc says it is going to work to offset the virus impact with more powerful policies, paying more attention to economic

this is a ursula von der leyen, who i think will introduce borisjohnson.r boris johnson. as you from the united kingdom, prime minister borisjohnson. as you can see, from his video, he is feeling much better, and i congratulate him on his recent arrival. i'm delighted that the uk is co—hosting this summit and joining forces with all of you against our common enemy, the coronavirus. in our own countries, we have taken extraordinary measures, asking our people to accept sweeping restrictions on their way of life, and by doing so, we have formed a human shield around our health systems, enabling our heroic health ca re systems, enabling our heroic health care workers to save many lives, including my own. but the truth is that none of us can succeed alone. to win this battle, we must work together to build an impregnable shield around all our people, and that can only be achieved by developing and mass—producing a vaccine. the more we pull together and share our expertise, the faster our scientists will succeed. the uk is the biggest donor to the efforts of th