Transcripts For BLOOMBERG Bloomberg Markets European Open 20240713

After the storm, global stocks stabilized after the worst selloff since the financial crisis. U. S. Equity futures rise. President trump says he will seek substantial relief for industries. Italy, though, in lockdown. A ban on travel and Assembly Goes nationwide. The who says the threat of a pandemic is very real. Crude gets back some of its losses after the biggest drop in three decades inspires decades. , after theaudi oil kingdom cut prices. Getting in there, looking at the cheap stuff. Do you see there anywhere else in the market . What does the gmm look like . Anna getting in and looking for the cheap stuff, emerging markets, rebounding rescan assets risk assets. Msci asian markets. In fx markets, the big move is around again. Gainrday, we saw the yen coming yesterday, we saw yen selling. The moves into havens yesterday a little overdone. Im seeing some kind of stabilization. How long will that last . We see yields going up a little bit. Some of that move into havens being unwound again. We wont get too excited about that given that it is well below 1 . That seems to be something of a watershed. We are moving in that particular direction. Lets tell you what is going on with one particular corporate reporting in london. They have come up with Asset Management just ahead of the estimate. The estimate was for 528 billion. In terms of the extended life this is excluding the Lloyds Banking group withdrawals. That is of interest. The outlook for markets in 2020 is turbulent. Lets get into that conversation now. The ceo of Standard Life aberdeen joins us on set. Very good to speak to you. I want to talk to you about markets feeling some turmoil. Also about your own outflow story. Ofs start with the first lows of those, the turbulence in markets. Just how turbulent are you getting ready for . I think we are in the middle of a turbulence at the moment. I think yesterday was driven by pure panic. Prices and bond prices at the moment were effectively discounting the global recession and potentially some period of deflation. Whether it turns out like that or not will determine the Economic Impact of these two supply charts. Anna do you see a recession in 2020 and is this like 2008 for you . You find those comparisons helpful . Is that the scale of it . I think the panic and the scale is in similar territory. I think it is very different from 2008 because we are not yet looking at a Financial System which is under threat. What we are looking at is supply shocks, one from the virus and the other from the issue with the oil price. One of the things ive learned in 40 years in the business, you cant see around too many corners. If the virus is wellcontrolled and if we get things breaking see a market bounceback. Going to be much tougher environment. It sounds like a copout, but it is too early. Anna matt . Matt i can understand there is no visibility in the virus and that is a supply shock where factories are shot, people are not getting the stuff they want to buy and it is hurting the markets. In the oil side, how much of a problem is this. If all of a sudden, there is no more collusion and price controls and it is a free market in oil and people can buy it for whatever price the market sets, is that necessarily a bad thing . I think you work right quite right. In oils one a big drop prices, we are seeing the equivalent of a tax cut. It wills remain low, have a beneficial impact for consumers. , we the last 10 years or so have seen the expansion of some pretty expensive production, which is going to be taken out of service and i do expect that it is that that will dominate in the short run. I think the good news is quite a lot of that bad news is very quickly discounted in market prices today. Subjectt me get to the of your business, the outflows you have seen. I think 17 billion pounds and change. Your business has seen a lot of outflows over the last couple years. Are you getting those under control . I think we saw, by the way, within that 17 billion, a very encouraging second half of the for the we actually saw First Time Since 2017, net inflows in the Fourth Quarter. The fact that Investment Performance showed a significant and in particular, i think it is a very significant improvement. Business far is the from getting over the i think when you look at the improvements in Investment Performance as the investment teams have come together, you look at momentum that is they are in the second half of the year in sales after we have integrated our Distribution Team , then i think we are beginning all thehe benefits of heavy lifting of integration that we did in 2017 and 2018. The fact that we had Building Momentum in the second half is assigned that we are looking forward. Terms of thek in merger making sense. Has it helped to be larger, to defend yourself against passive players . Was that a strong part of the rationale . I think the fact that we have scale is really important. Anna it helps in days like yesterday. Yeah. That is important. That is not just in terms of distribution, but the quality of our research, as well, that allows us to remain calm and take the mediumterm look at markets, which in these kinds of environments, you need to think about the future. You need Detailed Research and analysis. Investment, opportunities are opening up that will drive future performance. Matt are there opportunities now . Do you discount the global recession . Embedded int is market prices. At the moment. Both the downturn in economic a probably negative earnings almost everywhere in the world. So, what you tend to do in those kind of situations is you do the hard yards and you look at what is in the extreme. Everything gets valued in the same way. Value being market created as we speak. It is our job to do the hard yards and find those. Anna you do think it is different to 2008. Lloyd spanks that we will avoid the systemic damage with evidence in 2008. Are there systemic worries for you may be around credit . There are always systemic worries when you see the prospects of the shocks. A couple of things are important. Bank Balance Sheets, the Banking System, the Payment System seems to be in pretty robust shape. One of the things we are finding out as we see the reversal of some of the leverage being built up over the last five or six that is that process probably coming to an end. We are looking at the title holders of the leverage. My take at the moment, it is very early days, we are in better shape as a Financial System than we were as we went because8, 2009, partly the regulators have done a pretty good job. Matt what about the regulators . What about the country in terms of its response to coronavirus . Some governments have handled this well, some have not handled that as well. What do you think about the situation in the u. K. . I think so far we have a proportionate response. I think this is not just for government. But it is also for individuals and businesses, as well, to make sure that they do the right afterand they look colleagues and think about the way in which you can service clients. Certainly as a business, we are listening carefully to advice from governments, but we are certainly also putting in our own plans to make sure that we take care of our people around the world. Anna thanks very much for joining us. Up on the program, we will discuss the future of Power Generation in europes largest economy. Our exclusive interview coming up next. And remember, Bloomberg Radio is live on your mobile device or on Digital Radio in the london area. Also across the latest in the markets, the turbulence created by the coronavirus and oil, of course. This is bloomberg. Anna welcome back to the european open. Start of the european trading day. It was a substantial dip for European Equity markets. Many of the european stock markets down by more than 8 . Still substantial moves. Look to unwind a little bet in this mornings trade. Italy is going into nationwide lockdown to try to stop the spread of the coronavirus as the outbreak continues to spread in the nation and the death toll nears 500. The Prime Minister has called it the nations darkest hour. Schools will be closed. Public events will be canceled. Italians wont be allowed to travel without a business or health reason. President donald trump says he will seek payroll tax cuts to help bluntly the Economic Impact of the coronavirus and he is looking at substantial relief for industries hardhit by the outbreak. The president says he will announce it tomorrow. Oil is coming back from its biggest loss in three decades. The collapse of opec plus has seen saudi arabia threaten to raise to record levels and russias largest producer the International Energy agency is moving crew demand to drop this year for the first contraction since the financial crisis. Resilience of shale. The impact it will have on the economists. Discovery. Ew it may have great consequences beyond oil. On the ecb to cut rates this thursday. Deutsche bank and j. P. Morgan are joining hsbc in predicting a cut. Investors are expecting a 10basis point reduction to the rate. Global news 24 hours per day on by and on Quicktake Bloomberg powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Matt laura, thank you very much. Now, lets bring you an exclusive interview in the power industry. German Energy Giant Uniper has beaten estimates for the full year as it produced higher power prices. Meanwhile, the company says it will invest one point 2 billion euros in the next three years to cut its carbon emissions. Joining us now from dusseldorf in germany is andreas schierenbeck, the ceo of uniper. Thanks for your time this morning. I have to first ask you about the most pressing issue for markets it seems in the last couple of days, this price war saudis russia and the and opec. How will this affect your business with the big drop in the ruble . Youve got such a big piece of your profit in that currency. Good morning. Thanks for having me. I think it is an interesting question you are asking. Fiscal year 2019 and of course we are looking forward to the next fiscal year. Of course, the development of the oil price, it is something that we are looking at very clearly. Gas ismore on gas and not all that covered. We have longterm prospects. Were expecting the fiscal year between 750 million. We will have this fiscal year as well, the Dividend Payment coming up. Anna so, is your assessment of what we saw in markets yesterday , this does not affect your 2020 . Are looking into it. At the moment, it is too early to raise any concerns. We have seen fluctuations of the ruble every year. It is one third of our business and we have a very Strong Performance last year to as well. Situation,ying the but we are not completely concerned. Matt the price of natural gas has also come down significantly. Higherse, you have pricing really helping your results. That is one of the Key Takeaways from your results. Prices . Ou forecast gas how do you forecast power prices Going Forward . I think for the gas prices, we expect they would be under pressure especially with what is going on the last couple days. If you look outside, i dont know how the weather in london, here in dusseldorf it is more feeling like spring. That is definitely putting some pressure on gas. So, actually, the situation has not changed dramatically. There is a lot of gas available. Coming from asia to europe. I think that is a situation we can deal with. Gas if the more production in europe is going significantly down. It is something we have expected may becoming a little bit earlier. Matt im here in berlin and we have our own special climate. Although i dont feel like we had much of a winter either. It just rained and was gray every day. We use a lot of gas. It is cheaper than coal. We are using more gas than coal. How quickly do you expect that shift to happen across germany . Actually, it has already happened last year. Nearing the 30 euros mark. Gasswitch from carbon to automatically. You have seen our figures, as well, contribute into our results last year quite significantly. Switching from coal to gas can happen. The carbon rate and the gas prices. I think with the gas prices , the pricesfurther are staying at a median level, i think that is good for us and the gas business. I think you will see this is a little bit accelerated and the rate driven by the market. Anna can i ask you in the context of commitments you have made around Carbon Neutrality and decarbonization, what will be the main strategy for uniper s growth . Closing of last year was one of the best years ever. I think we set to a good updated strategy. For our european generation business, we handed out a target that we will be Carbon Neutral by 2035. We will be probably still emitting carbon but offsetting it with technology or other means. Nevertheless, it is a push to natural gas. It will be a switch to hydrogen partially. We have some experience with hydrogen. We have already some bigger projects in the transportation and chemical industry. Most of our efforts can take hydrogen. I think we are in a good track. Toare definitely committed 2035 being Carbon Neutral. The other part of the business, the commodity business, that is a different chapter. We are looking there as well to see what we can do. Matt thanks so much for your time, andreas schierenbeck, the ceo of uniper joining us out of dusseldorf. Coming up nationwide, locked down. Italy becomes the first country in the world to attempt to complete shutdown to prevent the further spread of the coronavirus. We bring you the story live from rome next. This is bloomberg. Loomberg. Anna welcome back to the european open. 35 minutes from the start of the European Equity trading day. We are going from meltdown to melt up. A little bit of a bounce. Lets talk about the spread of coronavirus and what the Italian Government is doing to combat that. Italy has gone into a nationwide lockdown. Affecting more than 60 Million People. Good morning. What does this lockdown entail . So, basically, theyve just taken the limited lockdown they did in the northern parts of italy and just a blanket extended it to the whole country. Zone,iginal ban, the red was only 48 hours ago. It seems like they decided very quickly that those initial steps werent enough. So every single part of italy is under the same rules, all the universities are closed, all schools, almost all activities that you dont actually have to do are recommended against. And all travel has to be justified. The post . About can you send packages, letters . Can you get things in the post . Well, that is a very good question. Actually, i havent seen anything directly addressing it. I suppose that would be another way things can move. I did not see anything about that particularly, but it has more been about people traveling and having a justifiable health or business reason to go somewhere. Anna ok, thanks very much. Joining us on the lockdown that has now gone nationwide in italy. Coming up, we will speak to a ceo of a german auto supplier. The report their full year results and talk about the turmoil in the auto sector in china and elsewhere. What kind of market is that leaving on the business . This is bloomberg. Matt welcome back to the european open, 30 minutes from the start of trading, cash equities after the big drops we saw yesterday. Will he get a bounce . Bloomberg daybreak europe im matt miller alongside anna edwards. Anna after the big rock you described, the biggest routing global stocks since the financial crisis. After that, we are expecting a little recovery in this morning session. The price for the oil markets, what will happen to dividends in that sector . Little, making a up some lost ground, up 4. 5 on brent. The 10 year yield goes higher, the end comes down. Fiscal yen comes down. Will we get a payroll tax cut . President trump talking about something major coming later today. That could be the next thing for the market to focus on and the euro, which had been gaining ground, complicating actions for the ecb. Now, the euro weaker against a resurgent dollar this morning. Lets get a Bloomberg Business flash with laura wright. Laura Deutsche Bank is dividing its sales and trading team in frankfurt after an employee contracted the coronavirus. It is sending some personnel to a backup site has a precaution. The bank says the employee is in good health. Kkr is temporarily closing both offices in london and having it clean after an employee tested positive. The takeover of semiconductor has one security clearance. It is a small step forward for the deal. He reported some u. S. Officials were recommending President Donald Trump block the deal. China still needs to approve the transaction. Blackstone is in exclusive talks to take a Developer Private according to reuters. The deal would be one of blackstones biggest that yet on china. Buyoutfounder says opportunities may increase amid market turmoil as the Virus Outbreak hurts Company Valuations across the world. Air france expects to cancel 3600 flights in march due to the coronavirus. It is reducing capacity by 13 on longhaul and 24 on its networks. Qantas is cutting a quarter of International Flights for six months. The biggest reductions are in asia, but it is reducing service to the u. S. And u. K. That is your Bloomberg Business flash. Matt laura wright in london with your business flash. Shiffler has reported fullyear revenue 14. 4 billion euros. The german autos supplier says it expects Revenue Growth this year of between 2 and zero. Thats not really growth, is it . Revenue contraction this year. Etween 2 and zero shares currently up 3 in the premarket trade. Joining us from music is the ceo of schaeffler and im assuming the forecast for contraction is a lot to do with china and the coronavirus. How severely is that impacting your business . Klaus good morning. Good morning from munich. The coronavirus is clearly a challenge. We are showing numbers today that are better than expected for the year 2019. It is not only topline what counts, it is Free Cash Flow and we have shown in 2019 that we are able to generate significant Free Cash Flow even better than expected. That gives me confidence we will also cope with the unexpected situation now with the coronavirus. Knowch a situation, we all forwardlooking statements are somehow a working hypothesis. Our guidance says 5 for the auto sector in 2020. That is in line with what others have said so far, and it is a clear commitment that we want to do our best to fight this crisis and achieve our targets. Anna good morning to you. What are the selfhelp measures, given that is the backdrop, the spread of coronavirus globally. What are the selfhelp measures schaeffler can put in place to protect yourself as a business financially . We were one of the first in china that set up travel bans and did all the things everyone is doing now. Let me say in china, all of our plants are back to work, 80 of Capacity Utilization we are seeing at the moment. 95 of the people are working, so the situation in china is clearly calming down and here, the most important things were to protect the health of our employees, second, to make sure the supply chain is not interrupted and we act in a most agile manner and clearly number three, we should not overlook it is very important to support our customers and the situation and if we apply the same measures we did in china here in europe, i feel confident we have a chance to cope with this unprecedented environment. Matt isnt that going to hurt business even more . Show,seen the geneva car the Geneva Motor Show canceled, the industrial fair has been canceled. Dont these impact your business in a negative way . This is a new type of risk. We have all learned to deal with geopolitical risk with natural is a new typethis of risk and the situation is unprecedented, so it is important to stay calm, we stay focused, and we show some leadership in each of our businesses and that is what we are committed to do. Canceledsomething is his right from my point of view because we need to avoid the virus spread further, but it doesnt mean there is no potential for a vshaped recovery in the rest of the year. Anna the chinese auto market seems set for another drop in sales. What are your expectations for the demand story in china . Klaus the demand story in china, the data point we all have is that february was down 80 in car sales. We expect march will be better and april will be further better. If you extend that into the year and assume the Chinese Government where the crisis will to have seen the peak also take action, that is a potential that over the year, the drop will be digestible. Dont forget in the last year in 2019, the first half year was a 15 drop in auto production and we cope with that. Lets stay focused and concentrate on the data we have and draw the right conclusions. Matt one of the things you are doing is focusing on cost cutting the core costcutting program and your industrial division. How does, or does the lower price of oiled help you do that . How much is fuel in terms of your cost and do you try to take advantage of 20 oil . Let me first comment on the costcutting and the cost and capital discipline measures last year. We have, as you saw from the release this morning, we have reduced our workforce in 2019 by nearly 5000 people. We have initiated end of last year november another program with about 1300 people, so i think we are well prepared in terms of managing our cost base. In terms of material prices and energy cost, the Lower Oil Price clearly helps us. What is more important is the steel price and here, we are seeing a little positive support, so lets wait and see what the year is going to bring. We are clearly looking at the holistic p l and while there is pressure at the moment from the and while selfhelp measures have proven successful in 2019, the material price part of the equation could help us, as well. Matt thanks for joining us this morning. Klaus rosenfeld, the ceo of schaeffler after earnings. President bolsonaro visiting the u. S. We will take a look at some of the events you should be watching out for today and a. Today next. This is bloomberg. Anna welcome back to the european open. 41 minutes past 7 00 in london. Just under 20 minutes until the start of the trading day for European Equity markets. We are expecting a substantial bounce at the start of the trading day, not making up the losses of yesterday. Were lost yesterday but we are looking for rebounded risk assets. Bond markets, we also see a little bit of selling of the perceived safe and of bonds, not like yesterday and we see yields going higher. The u. S. 10 year yield at 0. 64. Italy, its own story. We see italian 10 year yields falling five basis points at the start of the trading day. The lockdown across italy clearly the big talking point across the italian markets. Lets take a look at some of the events we should focus on today. First off, brazils president also narrow president u. S. ,aro is visiting the trying to convince tesla to set up a point in his country. Later this afternoon, the European Commission will present its industrial strategy package. Plans include a new eu Wide Partnership to develop Clean Hydrogen fuel technologies. Matt. K. Health secretary hancock slowly taking questions from lawmakers in parliament and will also get final euro gdp ,igures for the Fourth Quarter set to go as they teased out growth of 0. 1 . Lets get the first word news with laura wright in london. Laura in china, president xi jinping has visited wuhan for the First Time Since the outbreak started. It is a trip to project confidence. The government has stemmed the spread of the virus in the nation. Wuhan has been quarantined since january. The total cases around the world have topped 113,000. In the u. S. , president said he will seek a payroll tax cut to help blunt the Economic Impact of the coronavirus and is looking at very substantial but we learned the economic package will leave out a for the travel industry. The president will announce the steps tomorrow. Oil is clawing back losses after the biggest drop in three decades. Plus haspse of opec seen saudi arabia threaten to raise output to record levels and russias largest producer production. Ramp up the International Energy agency is warning crude demand will drop this year for the first contraction since the financial crisisl. The resilience of shale, the impact it will have on the economy. This is more than the discovery of a new policy. It may be russian roulette, which will have great consequences beyond oil. Laura economists are counting on the ecb to cut rates this thursday. Deutsche bank and j. P. Morgan are joining hsbc and Oxford Economics and projecting a cut. Expecting a 10 basis point reduction to the deposit rate and some are expecting a direction to liquidity. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Anna thanks very much. Laura wright in london. Lets get to our markets conversation with mark cudmore. Great to see you this morning. A bounce in oil prices not making up for the losses of yesterday but we are back about 36 a barrel brent, up 4. 8 after the losses yesterday. Even if we find a bottom in crude prices, you argue that doesnt necessarily mean an end to volatility the stoxx. Mark in the extreme day we saw yesterday, but overall, a higher level of volatility will be part of the structure of the markets for a few weeks because the volatility recently will affect measures. Implied volatility goes up, risk goes down from the buy and sell side. There is less appetite for those positions which means structurally, higher vol for a while. This is a reason why volatility periods tend to cluster. Matt that means we could see bigger losses Going Forward . What do you think about the market situation now that the u. S. Is coming in with at least projected to be a dramatic rescue package. Im not overly negative on markets, but i will say that i dont think you want to read too bounces. Todays it is logical for assets to consolidate, given the extreme moves the last couple of sessions. We assume today we would get a retracement, a pullback in assets. This is not to say this is an irrational move and they should collapse again. I wouldnt read too much into the shortterm price action. We have structurally higher volatility, so a couple percent move either way isnt too drastic. How do i think it plays out from here . In the shortterm, we are getting a policy response which is probably a boost in the short term because it feels like we had a clean out and therefore slight overshoot in the shortterm. How does it play out the next few weeks . Generally, Global Equity markets havent reached a stable bottom the next couple of weeks because we havent assessed the longterm economic damage which may be drastic but that will depend on the coronavirus narrative and where there is not much clarity about that yet. Talkingesident trump, about a Major Economic announcement coming but hes also been comparing this to the flu consistently. We will see what he plans to introduce. What about the question of the day, about assets retracing moves . This question we are throwing on the mliv blog is which assets will retrace moves fastest . Weve seen a lot of assets turning tail today, numbers retracing losses of yesterday. What are your thoughts . Most extremee cases are in the first case, oil at more than 30 maybe 40 . Clashedbecause it has so much on the day. U. S. Treasury yields, any day before yesterday, we would have gotten yields 30 basis points on the session. They are down 20 basis points on the session. Havenk treasuries and oil seen the most extreme. Arguably, treasuries have the most extreme move because oil was a real news event. We are going into a price war, the biggest providers of oil are clear on that. Treasuries, probably the biggest market overshoot. Matt i wonder what you think about oil and what price we should be seeing. Figuresee 30 wti, i must be sending trucks and ships and planes and getting it by the barrel as much as they theibly can, or is that natural equilibrium and is that around the price it should be considering demand destruction . Mark we are probably going to get oil at simulated tankers like the last crisis. It is better to buy a cheap tanker, store some oil, and wait for the crisis. It is a little different now. We have russia and saudi arabia indicating they are in this price war and both can survive a long time. Between russia, saudi arabia, and shale oil. The immediate conclusion is none of them is vulnerable to immediate collapse and therefore, there will remain downward pressure on oil for some time and whether that means for six months or three years, it is something that we need to play out a bit further and see reactions but i think at the moment, where is the oil price, it will take a wild find it but it is well below 40 a barrel. Is it below 30 a barrel . Probably not, but closer than 40. Anna one of the stocks that was doing ok was an oil storage business. Thanks, mark. Mark cudmore, mliv editor joining us in london this week. Coming up, jeffries finds rock hard global stocks to write out the chaos. It is about sustainability. We will bring you a selection next in our morning call. This is bloomberg. Matt welcome back to bloomberg market the european open. We are about seven minutes from the start of cash trading and we do see green arrows in terms of futures. Yesterday, we had incredibly dramatic drops. The biggest in most indexes since the financial crisis. In others, since september 11, 2001. These bounces are definitely small in comparison to the drops that we saw yesterday. Are you looking for a place to park your money now amid the turmoil from coronavirus and the oil market . Jeffries is suggesting some low risk global stocks to ride out the chaos with your morning call. Here is and reordering. Annmarie they are looking for places to hide amid the chaos and markets. A lot of companies in staples, health care. Proxy and highd visibility. Some names already does, associate foods, unilever, which makes dove and similar home and personal hygiene products, and the u. S. , names like activision blizzard, a videogame company, took , daughter dollar general, retail. Hoardingr, you see products and in japan, some Company Names do things like semiconductors and contact lenses, telecommunication companies, and the farmer sector. What jeffrey calls this, rocksolid defense global stocks. Anna rocksolid, we will see what kind of visibility they will have on their dividends Going Forward. Even with the coronavirus pushing the Global Economy toward this worse performance in over a decade, a number of investment themes are improving resilience or look set to. Lets talk to dani burger with a breakdown of some options, opportunities, perhaps. Dani within the market turmoil and that is as Public Health concerns reshape how consumers haven. The uncertainty of the virus has shifted Market Dynamics and that means a lot of the stayathome stocks are starting to look like havens. We see companies encouraging employees to work from home. Companies that allow chatting platforms become vital in this environment and it seems reasonable that people will want to order food to their home often. For that reason, analysts updated grubhub. Video gameainment, companies, netflix, outperforming the global stock market. Imperial capital calls this the cocooning effect. We have the stayathome stocks and this is the flip side. During outbreak in china, we saw a sharp fall in restaurant traffic. If that repeats itself, Restaurant Operators like Restaurant Group could suffer. Many of their outlooks are located near cinemas. Those shares, also tumbling. It was drastic last week after the james bond sequel was announced to be pushed back. Amc, trading at the lowest on record and disney, all those companies falling. Things like clorox, outperforming. Matt you need to bleacher stuff, of course. Dani burger, thanks for that. Coming up, the market open. Futures are pointing to a bounce after the big drops we saw yesterday. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Anna a minute until the start of cash equities trading. There are your headlines. After the storm, global stocks stabilize after the worst selloff since the financial crisis. U. S. Equity futures rise as President Trump says he will seek substantial relief for industries. Italy in lockdown. A ban on travel goes nationwide. The threat of a pandemic is very real. Crude claws back some losses after its biggest drop in three decades. Some buyers of saudi oil are said to seek up to 50 more after the kingdom slashed prices. Matt lets look at futures. We are looking at gains across the board. We are only looking at gains of about 1 . On a normal day, that would be if you hadnt, but lost 7 in your portfolios yesterday, it doesnt look that great. A little bounce after the big drop in futures, and we are seeing a bounce in u. S. Futures, as well. It could be said to be a slight risk on session this morning. Will openng markets more smoothly, more quickly today that we dont have this huge panic in trading. Anna lets hope so, because panic inms to be yesterdays session. The ftse 100 gaining 1. 25 . The spanish ibex up over 1 . Euro stoxx over. 5 . For is the bounce that is now, at least. How long that lasts, we will see. European equity markets going higher with more appetite for risk assets. You see that in sovereign bonds, the way we are seeing selling in goingign bonds, those higher after the readjustment after the flight to safety of sovereign bonds driven by ongoing fears around coronavirus and they have not gone away. Also driven yesterday by big adjustments in oil markets. What will be the longerterm implications of the detachment in oil price . We will get into that shortly. Interesting moves in fx markets along with a risk on move in stocks, we saw appetite for the dollar and selling in the pound and euro. Which sectors are benefiting the most . Most are in positive territory. Lets look at what we have on the sector breakdown. A little area of red around staples, but generally speaking, we are moving to the outside upside. I. T. , industrials, financials. That is knows a prize that if you see red anywhere, it would be utilities. This is what we have at the moment. We see markets generally moving higher. A little bit of a bounce this morning. By no means making up for the ground we lost yesterday where european big markets were down 7 or 8 and small ones, down more than 10 . Matt not even close and you will hear a lot there was a lot of talk today about how oil is coming back, but it is still trading at 36 a barrel, so not coming back much. As mark cudmore pointed out, you see treasury yields coming back, but they have absolutely plummeted, so it is not going to mean that much in terms of the kind of change we saw from friday to monday. Take a look at individual movers here. They opened straight away. Very quickly today compared to what we saw yesterday at this time. Three hundred stocks were trading and now we see almost all 600 of the stoxx 600 issues changing hands. Breadth,of the 552 are up. London petroleum, royal dutch shell, putting up decent size gains in terms of percentages and you see infineon ,n and murray annmarie there was concern over purchases. A big mover, 5. 6 in the chip space. Take a look at the losers. You dont see many big losers here today. S, whiche a few, like se provides global satellite services. Integrated transmission. Capita in the top, london. That is a company that provides an integrated range of services across the public and private sector, customer, human resources, software and so on. Actually down right now. Ce only really sized loser is apita plc. Otherwise, we dont see a lot of drops. Anna let me tell you what is going on in the central bank front. Some lines from the riksbank this morning. A lot of expectation around the fiscal story globally right now. For their part on the monetary side, they say the Balance Sheet should not be reduced in coming years. Perhaps a suggestion things will remain looser for longer. A rate cut, not the most important measure. Once again, we her Central Banks talking about how other players maybe are going to be in the mix or maybe simple rate cuts are not the way to do the necessary moves here when it comes to providing the right level of liquidity for markets. European markets, opening higher as asian stocks rebounded falling the following the biggest equity route since the financial crisis yesterday. Opening higher, but not making up for yesterday. The partner and cio at london and capital joins us on set. Good morning to you. Im looking at a chart that gives a nice visual as to the extent of the downdraft we saw for u. S. Stocks yesterday. Taking the stairs up on the s p, and taking the elevator down. In 13 sessions, close to bear markets in u. S. Stocks. How much were you caught off guard, just like everyone else, by what happened yesterday . Fortunately, in terms of exposure, we didnt have much equity exposure. It was shocking. Of had a holy trinity problems. The coronavirus spreading, the fact we realize for the last 10 years, we could count on Central Banks. To cutanymore rates and we cannot anymore. And youan introspection have russia and saudi arabia creating this problem in the short term but the expectation opec will not be able to oililize price and volatility will be higher in the future. You managed to avoid any exposure. How was that . Are you completely out of equities and commodities . Pau no, those are two areas we managed to avoid the energy space. We had some concerns about, not because we have a crystal ball, but rather because we didnt feel valuations were there and we also were not in any cyclical equities. We had been expecting for markets, which were quite overbought at the beginning of the year, to go back to pretty in 2018, awe were market concerned with growth patterns and is beginning to realize, and that is very much with us now and i dont think it will leave us. Central bankers are no longer the white nights that can save us from all trouble. Anna central bankers themselves have been quick to point out the limits to which they are able to act. What about what we do around trading regimes . Weve seen the south koreans coming forth providing shortselling rules and some were asking yesterday we saw Circuit Breakers working yesterday around stocks. Some talking about whether we need to see different regulations to stop such excessive come a such large moves in markets. What were your thoughts . Pau thats all good. Markets are a mirror in which the real economy and corporate world looks at and they only reflect what is being thrown at them. What will stabilize markets is the realization that Central Banks, the only thing they can do is make sure rates and cost of capital at our levels to allow for the fiscal stimulus itt needs to happen, whether is targeted fiscal expansion which will take time but in the short term, you will see news about temporary tax relief, tax forbearance in sectors, state guarantees, bridge loans, all sorts of developments from the treasurys of the major west and western economies. That is pretty much the only thing we can do. Anna how can you make those announcements look big enough to capture the markets imagination . Pau you have to do what they do best, which is sell a vision like bernanke had to do or draghi had to do. They will do whatever it takes. Up bailing outed the Financial System and the Banking System and in 2020, we will have to collectively bailout the real economy. Own,or fault of their something not dissimilar to a natural disaster. Matt over the last 10 years, thatarkets did so well they were often outperforming alternative assets like hedge funds, private equities. Is this the kind of time when a hedge funds true value shows through . In thesestment alternative assets, do they hold up much better and really outperform during this volatility . We give up on a lot of alternative assets over the last few years. The only 1 maybe not the only one, but one of the few things around what is going on right the realization Central Banks are no longer able to stabilize things. It will make investors go back to lets go back to fundamentals. The markets are beginning to trade on fundamentals and the fundamentals of Many Companies because of this holy trinity of problems are deteriorating and that is going on. Banku go from central toding the reaction function fiscal stimulus, very much taking that baton, you go back to prices not just reflecting the binary will i have support, will i not from Central Banks . Is qa on . Stable but back to certainly an environment in which fundamental investors, like hedge funds and like some more focused on the true value of things as opposed to trying to secondguess what policymakers will do will do better and i think once that settles the dust settles, and there will be pain in alternative markets, you will probably see an environment where at last you will see vehicles doing better than passive anna a few lines coming through riksbank. S from the most likely the coronavirus effect will be temporary. You cant exclude more longterm and farreaching effects. We will get into that conversation next with pau from london and capital. Italy becomes the first country in the world to completely shut down to prevent the spread of the coronavirus. We will bring you the story live from rome. This is bloomberg. Matt welcome back to the european open. We are 15 minutes into the trading day now and we are seeing gains of about 1 on the cac. Gains,e, 1. 2 but these truly pale in comparison to yesterday. The biggest drops we have seen. Ince the financial crisis one reason for those big drops was italy. It has gone into a nationwide lockdown, first country in the world to attempt a complete more than 60ecting Million People as it tries to stop the spread of coronavirus in europes forced biggest economy fourth biggest economy. Lockdowns in northern regions announced 48 hours ago all of the term lockdown is pretty flexible in italian. Lets speak to alexander a speciality in rome. What does this entail . Is it a true quarantine . A true blockade . Is it impossible to get in and out of italy . It is not impossible to get in and out of a sulli italy and not impossible to get in and out of your house. The fact is, you need him on struggle reasons demonstrate able reasons. Unclear, the question most of the 60 million italians are asking themselves today. Can i walk the dog . Can i go to the supermarket . Can i visit my elderly mom . In the beginning, the limits of , butockdown seemed yesterday, the screws were getting tighter and it seems the government is being stricter this time to make sure the spread of the virus finally stops. Anna thank you very much. Joining us with the latest from rome. A lot to discuss, the extent to which this will be applied. Pau is still with us. You make of italys response and do you see it as a precursor for the rest of europe or will each european country choose its own path . Pau i suspect it will be on a casebycase. It is interesting because italy is our canary in the mine in the way south korea and china were in asia. As bada and south korea, as the figures are, you are beginning to see the evidence covid19 but in actual normal influenza flu, the at which contagion is happening is slowing down and that is good news. Let us all hope italy will have those trends because that will at least if the rest of europe is up on that wave, it is the peak of the wave and we will know there is an end to this horrible thing. Matt it is good news in terms of the virus, right . Horse hident order jacket, if i cant order a new ducati, if i cant go out and buy a fiat, isnt that a problem for the economy . Pau absolutely, you are right mosttaly probably has the onesided economy in the whole of the eurozone. There is always the wealthy reason region, catalonia, bavaria, but the Growth Engine notn the north and it is only the personal drama but the of theat irrespective top of the wave coming you have a particular country that is in anuch already extremely precarious situation in terms of growth and later productivity labor productivity. The better news for italy, that gives the rest of europe an to collect the constraints around fiscal had. Nsibility they anna imposed what you expect to happen to the currency because if italy wants to sell more jackets and cars internationally, the strength we have seen in the euro and i have a chart that shows an unwarranted euro touching overbought since 2008. How complicated will that make recovery . Pau it doesnt help and as if we did not have enough problems for italy, it depends on large exporting champions which will suffer. Noteuro is reflecting idiosyncrasies of the eurozone but the dollar situation. Very quickly we have a situation where the dollar or yields in dollars are converging to where we have been for a long time in selling sterling and euro. The dollar had a massive differential six months ago and because of rate decreases and the expectation that the fed will have to go to 50 to 75 basis points of reduction. That will stop. In the next fed move, the fed will move rates. They will realize there is a limit to what the central bank can do. Lets talk about fiscal response. I expect the eurozone to allow for the fiscal response to take place and that will take some wind of the sails. Matt thanks for your time this morning. Pau morillaginer is a partner and cio at london and capital. Next, stocks on the move this morning including infineon on. The chipmaker is gaining after its 8. 7 billion takeover of cyprus semi. One u. S. Clearance. Won u. S. Clearance. This is bloomberg. Anna welcome back to the european open. 23 minutes into a trading day that looks different to yesterday. Up from the drops yesterday. We 8 on European Equity markets in yesterdays session. Today, we clock back a little of that. The market in italy, flatter than others due to new developments around the quarantine. Lets get to stock moves. Annmarie hordern has a breakdown. Annmarie infineon on is up more than 4 at 9 billion acquisition of the american Cypress Semiconductor getting a small step. It was approved by the committee on Foreign Investment in the u. S. Hurdle, but moving in a positive direction at a time we have seen deals regarding security measures be stalled in washington. I want to move on the sector picture. We have oil clawing back a bit. Butand brent trading at 30 the Energy Sector of more than 3 yesterday. Yesterday, we entered its worst on record drop yesterday. Total its biggest drop, was down 16 . For some context, down more than 30 yeartodate. Similar in basic resources, up 4 today. A little breather. We have base metals rallying and iron ore rallying. , but the sector down 30 yeartodate. Some context even though we are getting a bit of a breather. Matt thanks very much for that. As you have noticed, oil is its biggest some of drops in a generation. Investors grappled with the most volatile market on record amidst simultaneous supply and demand shocks. Treasury secretary Steven Mnuchin told russias ambassador in washington the u. S. Wants an. Rderly Energy Market surely the ambassador took that to heart. Partnerllaginer is a and cio at london and capital. What do you think about the moves in the oil market . How does that affect the rest of the business, the rest of the markets you watch . Immediate is very effect on some sectors, airlines which havent had a very good time lately and perhaps a boon for consumers. Even the fiat you mentioned earlier. That theproblem is ,. S. As a country both directly from corporate shale, corporate, industries proliferating around the industry of shale, where operation got employment in those regions, the fact is shale torators are not just unable operate at these low levels, but they are very leveraged. Therefore, they will default and that will affect the real economy and that will affect anna so we will watch the credit story in oil. , partner andiner cio at london and capital. Next, more on the coronavirus and the credit story. This is bloomberg. Anna welcome back. 30 minutes into a trading day seeing a small balance in relation to the big losses of yesterday. I am edwards at our European Headquarters in london. Alongside matt miller, who is in berlin. Matt lets take a look at the equity story so far. After the biggest drops yesterday we have seen since the great financial crisis, we are making a little bit of a recovery. On a typical day, a gain of 1. 75 would be tremendous for the broader european index, but considering yesterdays drops of 7 and more across the indexes, this is not so great. Lets take a look at equity groups or the Industry Groups gaining. Most likely all of them are gaining. Here you see yes, indeed, they with basic resources of oil and gas leading the pack because they had the biggest drops yesterday, so those 3 recoveries are not so impressive in the face of 10 to 20 drops. That is the kind of market we are dealing with peer lets get to first word news with laura wright in london. Laura italy is going into nationwide lockdown to try and stop the spread of coronavirus. As the outbreak continues to spread in the nation and the death toll nears 500, Prime Minister Giuseppe Conte his called it the nations darkest hour. Schools and universities will be closed, all Public Events will be canceled. Jinping, president xi has visited wuhan for the First Time Since the break started. It is a trip intended to project confidence or government has managed to stop the spread of the virus in the nation. Sincehas been quarantined january 21. The number of cases has topped 130,000 per in the u. S. , President Trump said he will seek a payroll tax cut to help counter the Economic Impact of coronavirus. Have learned the economic package will leave out aid for the travel industry. The president says he will announce the steps tomorrow. Global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in this isn 120 countries, bloomberg. Anna thanks very much, laura wright in london. Lets check what is going on. The gilt markets, investors piling onto the safe haven of guilt and treasuries. Today a little unwind of that, yields going higher. Demand is coming down. Where does that leave us ahead of the budget tomorrow . It is budget day in the u. K. What kind of support will we see for u. K. Businesses to bridge them through from one side of coronavirus to the other . This is a marathon, not a sprint. What will be in that budget for business to help them through that marathon . Lets talk about the corporate sector from a different angle. Corporate bonds are edging higher after the u. S. Announced Economic Relief to help limit the turmoil felt by the coronavirus and an Oil Price War. One measure at risk in the european debt market jumped to its highest and seven years monday. The market that heat levels not seen since june 2013. Lets go to our guest, head of Investment Grade credit in europe at wells fargo assets management. Henrietta, good to speak to you this morning. You see charts like them when we just showed, the index jumping to its highest since 2013, how concerned are you about credit markets and their durability in europe . Saw yesterdayt we was quite exceptional. I think it was due to confidence factors, news on the oil front, bearing in mind that if you look at european markets, they are probably less sensitive to oil than the u. S. Markets. You have the contagion effect from that effect over the weekend. And of course there is the uncertainty about coronavirus. I think what we are seeing is the credit markets have been theonably sanguine about coronavirus until last week. And i think the big jump we saw monday has been building over the course of last week. I think that is why the intervention of the central important, but it. Eeds to be handinhand Central Banks will not be doing it alone. I am just looking at a story out of matt i am just looking at a story out of santander in spain, is this the kind of thing that you need to see to give the market a bottom . Henrietta yes. I think that is what we need to see. We need to banks to be able to help companies through a difficult patch from an economic perspective. They will need help in terms of payment, in terms of being able what italy isough going through etsy to be carried through what is going to what italy is going through at the moment. Anna the companies in the oil sector are you saying staying well away from companies in that space until you work out which ones will be most affected by the big move we saw yesterday . Henrietta absolutely. I think the oil shock is something the market is a bit more familiar with and is able to deal with. If you go through emerging markets, you know who the Oil Producers are and you know who can survive a difficult patch. Di and russia are going to if you look at the credit markets, you look at the u. S. Credit markets and highyield in particular, oil and gas is still about 10 of the market. It will have an impact there. Fragilemarket that is since the shock we saw in 2015 and 2016. I think it will help topple over a few more companies. Anna so we will see u. S. Shale drillers go under as a result . Henrietta and accelerate some of that movement we have seen. If you look at investmentgrade markets, you have exposure on the oil and gas side with investmentgrade. It 250 about call billion in the market to watch on that front. Matt to some extent, this is kind of what saudi wanted to do, right . They get to cut the price for oil, the can deal with it they can deal with it, the russians can do with it, and they drive these companies out of the market. Henrietta absolutely. I think that is the aim. Saudi is on the Balance Sheet to do it, probably less than russia. Russia is being quite disciplined over the last few years in terms of the budget. It, too, can hold on for a while yet. Are you seeing opportunity . I saw an interesting couple of tweets from big names in the market over the last 24 hours one was by ray dalio, saying pay attention. There will be some. Where do you see those . Henrietta i think at the moment where we are seeing the most opportunities on the credit markets are twofold. One is p g. That is what we see benefiting from the Current Conditions because people are locked up at home and they will watch videos. We are seeing a lot of the Business Travel being replaced by Video Conference calls. All of that is good for the tnt sector. That is an area that is of interest. If you did get redemptions in the high end markets, the baby can be thrown out with the bathwater. That is an interesting sector to look at. The other sector we like, primarily because the Central Banks are going to do their utmost to keep it up and running, are the banks. They have reacted strongly to the markets, but i think that is definitely an opportunity because the ecb, the fed, they will be supporting the banks Going Forward. Matt you got hit pretty much the hardest. What do you expect in terms of european banks . And readd a, what do you respect henrietta, what do you expect from the ecb . Henrietta the ecb is going to cut rates. At most we might get a twopoint cut from the ecb, but what is more interesting is that they already have to support the Banking Systems, they sure the pipes were, make sure the flow credit keeps going. There may be a message on some of the for the banks to be sector,lend to the sme as you talk about with santander. Introducing the tail end of last year another aspect, and i would say the hurdle is still quite high for that, but they are buying 20 billion a month in the markets where they could tilt that more to the corporate sector if they feel the need. Not only that, they could increase it. They have been higher before. Matt we are going to keep you with us a little bit longer. Pacquement. Up next, as Deutsche Bank as a Deutsche Bank employee contracts coronavirus, we look at the measures taken to contain the outbreak across europe this morning. In the need to know. This is bloomberg. Anna welcome back to the european open. Increasingly partisan for moves for the European Equity market. Now more than 2 . U. S. Futures are higher, by 3. 3 , 3. 7 percent. Hopes for fiscal stimulus, talks from President Trump over a Major Economic announcement coming. , with hiswill that be official comments around coronavirus and how like flu they have believed it to be . Futures the u. S. Picture for you as well. Even with a very strong gains in futures in the u. S. And in stock markets in europe, it is not making up for the heavy losses of yesterday, where we were down, of course, by 7 on u. S. Equity market there about for the major markets are lets go to the Bloomberg Business flash with laura wright. Laura it sounded like aberdeen has seen its assets drop less than expected, but the slower decline Lloyds Banking group shifting money away from the company. We spoke to Standard Life aberdeens ceo about the current turmoil in markets. I think yesterday was driven by pure panic, and we have got stock prices and bond prices at the moment effectively discounting a global recession. Period ofially some deflation. Whether it turns out like that or not is going to depend on the Economic Impact of these two supply shocks. Laura santander is opening a 20 billion euro Loan Facility for theness to mitigate coronaVirus Outbreak effects. It is recommending remote dependence of its annual general that is your Bloomberg Business flash. Anna thanks very much matt thanks very much, laura wright in london heres what you need to know today. A goshen Bank Employee in frankfurt and another a Deutsche Bank employee in frankfurt and another kkr in london have contracted coronavirus, swift measures to contain the outbreak. Italy will become the first country in the world in recent history to attempt a nationwide lockdown and try to stem the spread of the disease. Joining us to discuss with more on coronavirus, corporate impact in europe, is dani burger. What steps are kkr and deutsche havetaking now that they workers who contracted the virus . Dani certainly a new turn for these firms. Before we saw preparation, the kkr and Deutsche Bank are joining the ranks of Financial Firms that have to contend with workers who have the virus. When it comes to Deutsche Bank, their frankfurt office, they have taken employees, separated them into sales and trading, putting them across from the main tower. They have a recovery site that they say they will operate until march 27, encouraging some employees to work from home, so spreading everybody out. In their london offices, they are doing something similar as well. Kkr is more drastic so that the ill employee was in their london office. They have completely shut down the london office. They say anyone who has come into contact with the employee needs to self quarantine for 14 days. Everyone works from home until further notice, and they will sanitize their london offices. I would not be surprised if at we are speaking as were speaking there is a cleanup crew at kkr right now. Lets interrupt the conversation briefly because we have information coming through from japan. Shinzo abe, the Prime Minister there, is putting together ¥430 billion fiscal support package, around 4. 1 billion u. S. Dollars. We are seeing reaction coming through from the japanese with regard to the virus. We are going to have to bring our conversation to a close, but thank you, dani burger, with how businesses and banks and the Financial Markets are coping with coronavirus. Up next, we will bring you stock movers, including Infrastructure Company lance here. More on the Market Reaction next. This is bloomberg. Matt welcome back to the european open. Right now 50 minutes into the session, we are looking at gains European Equity indexes. Typically that would be a pretty banner day for those of you long stocks, unless you got long last night it does not look so great. We had 7 and change drops across european and u. S. Stocks at the end of yesterdays session. Lets take a look at oil right now. Saudi aramco just announcing it will supply 12. 3 Million Barrels a day of oil in april, and you can see nymex crude right now up at 31. 82, 3182 brent crude at 35. 08. Last week we were looking at figures that were 50 for brent crude, so huge drops yesterday not really helped much by the gains we are seeing today. Lets get to normally our resident oil expert, now in new york city, annmarie hordern. Talk quickly about what you think about the 12. 3 billion down 12. 3 Million Barrels a day coming out of saudi. Annmarie this is a complete escalation of the Oil Price War between moscow and riyadh, pumping about 3000 barrels a day above their max. Taking it to 12. 3 Million Barrels is a clear sign they are serious about this price war. Moscow is not going to take this one likely lightly. In terms of stock movers, we see this broadbased stabilization, the biggest selloff since the financial crisis. The companies that are not doing the best are italian companies, and no wonder why, given the fact that italy right now, the first country in the world to have a standstill, on a lockdown. Children are home at school, restaurants are closed, events are ending. This will have an impact on their economy for so many businesses in italy under pressure this morning. Another update from italy. The country is going into a nationwide lockdown, the first of the world to be nationwide as it attempts to control the spread of coronavirus per the outbreak is putting unprecedented strain on italys health care system, with some of the worst affected areas close to breaking points. Lets go to Tommaso Ebhardt in milan. We were reading further down in the story where we were talking with health professionals, that they are saying the system is coping just at the moment. What is the latest. The latest is that the weaker is where the real emergency is right now. The measures announced last night widening a lockdown that we have been here in milan since saturday night, working from home and not from the office. Hospitals are suffering. Do issue is that we in italy not have potentially enough beds , you need to treat all the patients that we target in coronavirus. There is aople lockdown and we will be closed until april 3. Closing atstaurants 6 00 p. M. , so it is a proper lockdown even if the way to enforce the lockdown are different in the first couple of days. We saw that you can see some movers currently in the country. Airports are open, now they have started to make checks at people moving from milan, south to milan you can travel inside the country just for justified business reasons. Matt thank you so much for joining us. I hope you get some way to play in your rugby games, maybe your league can set up in an empty stadium. Tommaso ebhardt in milan, our bureau chief there and our resident brother rugby expert as well. Lets go to kristine aquino, leading the market watch live. At the, if you look scale of the drops that we had, they are really not making us much making up much ground. Really, and is really too soon to call this the end of the route because the big question in the market is what is going to stop it. We have seenk temporar reprieve we have seen temporary reprieve in what you can expect. We have seen massive declines and a little bit of a bounce next day only for risk sentimental reset, back toward negative a few days late later. It is not clear at this point what is going to stop this. I suppose the question of the day is taking advantage of the shortterm environment, and what you could expect, the biggest retracement would be assets that have seen the biggest declines, but until we see a clear catalyst for stopping the rut, we might be stuck. Anna we do seem to be in the dark, dont we . One of your colleagues describe this as fishing in the dark. A lot depends on how individual corporates, when they get a handle on visibility, and a lot will depend on Health Crises about to develop across europe and the united states. These are things that we will not get the answers to too quickly. Kristine and the problem is there is zero his ability in the impact zero visibility in the impact on earnings. That is not something we will see probably until later in the year. This is kind of what we have been worrying about over at markets live, the idea of the initial hit to sentiment because of coronavirus concerns. In the second order effect is hard data, via earnings, these concrete things investors are watching, which does not make for a good year. Anna thanks very much, kristine aquino. Member, you can join in the debate. That is it for the european open. Stay with bloomberg tv. Up next is surveillance. They take you through the balance and European Equity markets. This is bloomberg. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Francine markets take a breath, global stocks stabilize. President trump will speak. Nationwide, even as doubts arise as to how closely the italian lockdown can be enforced. And the threat of pandemic israel but the up is real but the outbreak can be contained. Good morning, good afternoon, good evening, everyone. This is bloomberg surveillance. Im Francine Lacqua in london, tom keene is in new york. You had a fantastic hour recapping some of the falls that we saw yesterday. If you look at oil stabilizing somewhat, and european stocks somewhat. Tom you have the german twoyear back under 1 negative yield. Over a positive 1 in the united states. I will call it stabilization and recovery today, but i am not hearing all clear by anyone