Angela merkel may be pouring a little bit more cold water on that idea in the last hour. Vonnie absolutely. It is hard to understate the extent of the rally here. We have consumer durables leading this rally, up more than 7 in the s p 500. Itself is up 4. 4 . Even in the s p 500, the worst performing sector is up 1. 25 right now. The dollar index is up 0. 25 . A live at of weakness for the 1. 0785. Ding at the Canadian Dollar stronger today at 1. 4742. Guy lets get some more insight into what is happening with these markets, a little more context as to where we are potential he going. Mber, Global Market strategist at jp morgan asset management, joins us on the phone. Looking at what is happening around world, seeing signs that there may be stabilizations happening in a number of countries when it comes to coronavirus cases, then extrapolating that into the equity market, i am wondering whether that is a step too far. Hugh i would agree with you because i think at the moment, what we still really dont have a good grip on is the duration of the hit to activity. Clearly, the markets are more optimistic today and over the past couple of weeks, but i think theres a clear risk that we start to see second waves of outbreaks across different nations, and that really forces investors to start to reassess their assumption that this can be just a one or two quarter hit to activity, and then a sharp rebound from there. Until you can get a much better steer on how long lockdown measures are going to be required, it is hard to be bullish. Guy does credit look cheaper than equity . If i am looking to tiptoe back into the market, do i do it via the credit channel rather than the equity channel . Sure. I think the focus, regardless of if you are looking at credit or equity, has to be upping quality at the moment. Within the credit market, youre looking at ig falling under the emboli of centralbank support. As to where to go first, i think in the near term, credit feels like a safer bet because youre going to feel the effects of that Central Bank Intervention more quickly, but for longterm investors, if you are looking for returns over multiple years, clearly equities are the place to find money. I think it comes down to the question of time horizon. Vonnie jp morgan has been saying fade the release bounces. On your side of the bank, would you say the same thing . Im cautious on over extrapolating the shortterm moves because for me, i still think there are significant uncertainties as to how this plays out. One of the signals i will be watching for airy closely over chinaxt few weeks is how goes about lifting their lockdown measures and how quickly they can get their workers back to work while trying to keep a second wave of outbreaks under control. We are seeing stories over the weekend that actually, you are starting to see a few concerns rising again about the potential for that second wave of outbreaks, so i would expect china to give you an earlier lead on how this is going to play out across other developed markets. Vonnie ive been reading that as well, and it has been pretty obvious that markets are taking their cue from other market. We feel like maybe we are a couple of weeks behind europe. Certain countries in europe are a couple of weeks behind italy, and so on. For markets to do the same thing . Not everyone does this is him way,locks down the same gives stimulus the same way. We arehis is all what grappling with. These are unprecedented types of economic shocks, and therefore, all investors are really grabbing any data we can get our hands on to try and extrapolate how this is going to play out. For me, talking to our colleagues on the ground in asia, they are starting to see activity normalizing more quickly in the Manufacturing Sector than in the services think the question is absolutely right at the moment, which is how governments are going to try to back themselves out of the quarter they find themselves in. I think monitoring the news flow over the next couple of weeks as to how governments start to plan their exit from the lockdown strategies theyve implement it will give us a better steer on the type of recovery we might be looking at later in the year. At what is look happening around the world, clearly it is not easy to compare apples to apples and get the data to be consistent from region to region, country to country. Who is infigure out advance of others is very difficult. Nevertheless, there has been this kind of view that the dollar is the safe haven asset, and by extension, u. S. Equities are a safer haven asset then maybe other developed market equities. Is that the correct point of view . Im excluding the dollar here. Our u. S. Equities safer than european equities or some asian equities . Index composition is going to play a big role because really, what i am looking for at the moment in terms of the safest equity markets is those that have the strongest Balance Sheets. Typically, that is normally going to steer you towards the u. S. Over the developed markets. In addition, i think you have to look at financials within europe , and struggling to see the financials picking up until we start to see Government Bond yields rising for the right reasons, and yield curves starting to steepen further from here. For me at the moment, it is really that core for u. S. Versus europe and the stronger Balance Sheets of the tech sector at this stage. Guy that kind of takes us towards the tech arena. About whatnd think kind of sectors and what kind of secular trends are going to be accelerated by this process. If you try to pick advantage of that, what are you seeing . Hugh when you are looking at the next invest in cycle, it comes down to the pace you are looking at. If we are going to see a slow, steady recovery out of this, with perhaps Consumer Behavior taking it while to normalize, then to me, you are looking at your secular growers, your tech names as being really wellpositioned. If that rebound is going to be sharper and quicker, and momentum is going to pick up much more quickly, then perhaps that is where your value type names have a better chance. Absent that kind of shark pickup in growth, i think it is tech at the moment. Vonnie thank you for joining us today. That is hugh gimber, jp morgan asset management. A headline now crossing the bluebird. Rodrigo duterte of the philippines is likely to extend the lockdown in the philippines to april 30. Once again, sources telling bloomberg that Rodrigo Duterte is likely to extend the philippines lockdown to april 30. Lets get a deeper check of local markets of Global Markets with taylor riggs. Taylor this is the second straight monday that weve had major gains. A week ago, we had gains of about 3. 4 or so on the s p 500. Before that, mondays were usually posting losses. Hadnt sine you hadnt seen a gain going back since arch second since march 2. It is all about perspective. You are still down about 23 from the peak in february, so why we have come a long way, there is still nowhere near the highs weve had a month or two ago. Some of the optimism coming today on the Health Concerns about the virus. In a partnership, going to invest in the company to look at experiment were antibodies to either treat or prevent covid19. Sure Orasure Technologies also getting a boost from a test that uses fluid samples. Pharmaceuticals begin a Clinical Trial today that said Animal Studies showed promising immune responses. Those big pharmaceutical and Biotechnology Companies are gaining. As you can see, this is sort of a broadbased risk on sentiment. That means yields are higher by about six basis points or so on the 10 year. The vix continues to fall, now down to a 45 handle. We are now at the lowest on the vix since march 6. The dollar is seeing some weakening, as you mentioned. Gold is the one outlier, still a safe haven catching investors attention. You had seen a lot of Dollar Strength and selling off of gold. You are seeing some of the dynamics returned to normal correlation. Guy . Thankk you indeed you very much, indeed. Coming up a little later, i interview with austrias finance minister. His insights on stimulus measures for european economies, and what happens next at that eurogroup meeting tomorrow. This is bloomberg. Im guym london, johnson, with vonnie quinn in new york. This is the european close on bloomberg markets. Lets check in on the bloomberg first word news with viviana hurtado. Viviana we begin on capitol hill. Part of the fingerpointing threatening new steps to aid the economy. U. S. House speaker tbilisi says Donald Trumps slow response is costing lives. Senate jordi leader Mitch Mcconnell says Democrats Senate majority leader Mitch Mcconnell says democrats distracted the nation from a threat with the impeachment trial. President trump and Vice President mike pence pointing to a day by day reduction in deaths in new york. Still, the u. S. Surgeon general warning americans to brace themselves for tragedy. He says this week be the hardest and saddest of most americans lives. Spain reporting the lowest number of new cases in more than two weeks. As signs that europes largest outbreak is slowing. Deaths marks the lowest fatalities since march 24. British Prime MinisterBoris Johnson reportedly in good health. He spent the night in the hospital, where he is being treated for the coronavirus. His illness dealing a blow to the u. K. Business as the country repairs for the worst of the pandemic to hit. So far, almost 5000 people have died from covid19. Scientists say the peak of the outbreak is likely to hit within the next weeks. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im viviana hurtado. This is bloomberg. Vonnie thank you. Lets get to the latest now on the u. K. Government as Prime MinisterBoris Johnson remains hospitalized with coronavirus. Newlyerg spoke with the appointed u. K. Shadow chancellor. Status ofer about the the Opposition Labor Party leader and whether he could join a wartime style government of national unity. I think it is very important at this time that we show that different Political Parties can work together, but in particular, make sure that the right support is in place for people who are under pressure, and to make sure that our Public Services are really delivering. Obviously, particularly our health care system. Wehink it is critical that have a very transparent and open approach. I think it is right that the opposition will raise question and put on the record where processes arent working. I think that is very important. We have continuously done that since the beginning of this crisis. I think we are going to want to continue to do that. There are Big Questions about things like testing, the availability of protective equipment, and we want to make sure that those issues are dealt with, and i think being quite open about that is going to be critical. You pointed to some of the potential holes in the package we have seen from the u. K. Chancellor. Unprecedented, really. Four emergency packages unprecedented, really, for emergency packages that would have been unimaginable for a conservative chancellor. Do the packages go far enough . What would you do differently . I welcome the packages that have been put in. They were necessary. It was quite right work with businesses to put them into place. Wouldveay that it been good if discussions couldve happened earlier, but at least we have now got the scheme in place. I think there are big issues the government needs to be looking at now. First of all, we need to be looking at how employers can be very strongly encouraged to take part in that furlough because we are seeing a number of them decide not to do that. Part of the reason for that was because a number of businesses are looking at fixed costs, which obviously arent covered. And inuld cover salaries arrears. Loan wasnt fit for purpose necessarily for that point of view. That has been changed to an extent. Hopefully that will meet tomorrow of that support so that businesses will be looking to keep those staff on and not shut up shop, but we really need to see government engaged on that question. It is not good enough just to announce that furlough scheme. See it protect jobs wherever possible. Guy that was the new u. K. Shadow chancellor here in the u. K. , the finance minister effectively. The much a believer in international process, dealing with the crisis that we are facing right now. Lets talk a little bit about whats is happening with Boris Johnson. The british Prime Minister in across the hospital river from 10 downing street. It will be interesting to see the locations in terms of what it means for the bridge government. Raphael joining us now. Boris johnson, the Prime Minister, is in hospital. Ashear that he is just there a precaution, but nevertheless, what are the applications for the running of the British Government and its response to the virus . Therese the government has been very careful about raising any kind of alarms about johnson going to hospital. They say it is purely precautionary. Johnson actually tweeted today. We have been told he is still in charge. I dont think there could be any doubt that if you have the leader of a country in the middle of the biggest crisis country has faced since world war ii, that the leader hospitalized, there are complications. It is difficult to run a country from a hospital bed. The question really is how long will be in hospital, and who is coordinating daytoday activity along with him because weve heard that various departments are beginning to clash over the tradeoffs that have to be made between the economy, which has basically been put on ice, and some of the Health Care Challenges in terms of testing, getting protective equipment for nhs workers. For now, we see dominic raab, the foreign secretary, chairing the covid19 meetings, but how long that could continue if johnson were really to be out of commission is an open question. Vonnie right. He had been enjoying high ratings, so what is happening now . Is he holding onto those ratings . And does the British Public have the right to know a little bit more . If hes in the hospital, does the public have the right to know if he is on a ventilator, for example . Therese that is a very interesting question. On the ratings, johnson got a boost after the election, a boost after brexit, and initially, there were a lot of doubts about how the government was handling the coronavirus crisis. ,hey then responded to those the criticism. There are daily news conferences. The Prime Minister took over responsibility. His tone very much changed, and i think public responded to that and were very supportive of the isolation measures. That doesnt mean that those Approval Ratings will necessarily continue. I think there have been huge questions around the inability to organize fast testing, and particularly about the shortages in protective equipment facing the health care workers, which is directly putting them at risk simply because the viral load you have in hospitals is higher than what most of us would have, so going out in the street the doctors and nurses that dont have protective equip and are at higher risk. I think the government were very supportive of the nhs, know how hard the nhs is working at this time tomorrow going to be rightly critical of the government. But how much do we really know about johnsons condition . It is an open question. If he returns to work and is healthy in the next 24, 30 six hours, i think people will feel they have been roughly kept in the loop. But if it drags on, i think there will be questions raised as to what sort of plan was really put in place and whether the public was kept properly informed, especially at this crucial time. Guy we will leave it there. Bloomberg opinion columnist therese rafael on the government here in the u. K. It would probably be nice if Boris Johnson found his way out of hospital. This is bloomberg. Live from new york, im vonnie quinn, along with guy johnson in london. This is the european close on bloomberg markets. Equity markets are doing very nicely in the United States. The s p is up 4. 5 , the dow and the nasdaq up 4. 6 . Consumer durables are doing extra nearly well in the s p 500, up more than 7 . The likes of nike and the Apparel Companies doing well today. The vix down another little bit to 44. 7. We have a stronger dollar, and treasuries in the range they have been in for the last several weeks. Guy here in europe as we approach the end of the session, we are definitely on the upside. As you can see across europe, some real outperformance coming from germany. The car sector in particular a standout, with names like volkswagen. We have seen the docs retaking the 10,009 today. Ftse 100 up by nearly 3 , near session highs. Stocks doing well, the driver sector the travel sector doing well. We are seeing slightly lighter volume than normal, which is worth bearing in mind. European close is next. This is bloomberg. Guy 30 seconds to go until the end of regular trading here in europe, a shortened week of course, friday and monday, youre about, united dates out on friday. Taking a look at where we are with this positive story session here in europe, we are near session highs at the end of the day. Up by 3. 76 for the stoxx 600, up 11g at a heavy 320, points today. In terms of the breakdown of us european equities, take a look, germany is delivering strong outperformance today, as you can see. The dax is up by 3 . [no audio] vonnie so im going to jump in and say that in the United States we are seeing a nice rally. Quite the rally at this point. Easy there as you can see on your screen, the airlines in the u. S. Are lower now. There has been a pretty choppy day for american airlines, down one quarter of 1 . Thatd down as well, South Southwest down three four of 1 . Is anf the s p 500, it update for all boats. One of the sadder stories of today is that the worst performer of the s p 500s robert hass international, the company that provides temporary and permanent staffing services. The Staffing Company is one of the worst performers today. As you can see, the 10 year yield at 65 basis points. Oil was down for the barrel of wti. Upper high now for the dollar index. Lets get to the latest now on the coronavirus pandemic as members prepare to meet tomorrow. Guy johnson and tom keene asked the finance minister what he thinks about the idea of corona bonds. The main goal is to uphold the euro system to uphold each other if we needed and this can be achieved by the instruments and the measures we already have in place. I consider euro bonds as a lets say not so serious one, Everybody Knows that you would have to change the fundamental contract of the european union. This is not easily done. It takes a long time. That,f anybody agreed on it would never be in place at the right time to fight the crisis. I considered a hypothetical debate. We are in favor of doing is helping the countrys in problems, in troubles on the Capital Markets because of high debt ratios in europe. We can do so by using different mechanisms that we have already established after the financial crisis approximately 10 years ago. One of them is european stability, but there are others like the European Investment bank and other measures. We have enough measures to be able to help each other if needed. The esm hekly can utilized to provide relief . I would estimate overnight. If you take enhanced credit it would be possible to the in the evening or the next day, you could draft of the mo you and you would be able to have this credit line in place. To come back to what you said in the previous 41 answer, can i assume that you do not believe that the french proposal joint issuance of recovery bonds, lets call them corona bond recovery bonds, call them what you will, i guess, you dont think that would work . It depends on what you mean. Talking about eurobonds, from a technical perspective the modularization of that within the european union, this is not allowed within the european framework right now. There are other possibilities to issue bonds over certain institutions. If you call these corona bonds, why not. Yet be, for example, why not . Also other possibilities. You have to differentiate by what you mean when you say corona bonds or eurobonds. Austrian was the finance minister speaking to us earlier. A few more numbers to bring, u. K. Total virus cases crossing 50,000 deaths. There is some good news here. New u. K. Coronavirus deaths have slowed for a second day. Some signs may be that the social distancing measures put in place by the British Government may be starting to have an impact, though the total cases have now crossed 50,000. The new deaths number is starting to fall. Lets get more insight on the European Response to the virus. Eurocomes ahead of the Group Finance ministers meeting taking place tomorrow. The line byd now on maria tadeo. Maria, what can i expect out of . He Euro Group Meeting tomorrow i am hearing from minister after minister, from countries like austria, that we should downgrade expectations. What are you hearing from brussels . Maria a few weeks ago the leaders were unable to bridge gaps between the north and the south. The countries that have lower debt, the countries with a huge pile of debt, like italy. They were told to come tomorrow and come up with a plan, a proposal to bridge the differences and put together a big package for the european economy. In your interview you really nailed it. That is the debate at this point. Here is what we have already, the credit line when you look at the figures. Maybe 35 billion euros, you are looking at close to 30 billion overall. The germans, the austrians, they andwant to move from that saying dont look at this as a bailout or a return of the troika. Dont look at this as something strict and politically toxic. The problem is its going to be very hard to convince countries , who want and italy to see something bigger. Who feel that the amounts are not big enough and call this a shortterm situation. Ultimately they could be hit with a huge pile of debt and ultimately whether or not the debt is sustainable. Vonnie and then we are back in two it again. Is there a chance they cant make it without a mutual situation . Maria at this point what is key is that the narrative has moved. Countries that were playing hardball, like the dutch, saying that they should have prepped of the economy for a time of stress. Something toxic doesnt make them look good. The reality is the bottom line is, are they willing to take on more risk and it points to what you are seeing. At one point this was to be made neutral. Its about bringing the two sides together and saying we will not do corona bonds, but we will put together a fund to finance through debt. We can look at something more longterm, a fund for five to eight years. Frankly, everyone is keeping quiet. Negotiations happening tomorrow. Guy lets talk about conditionality. In theory the use of the esm should come with conditionality. Removed,ality will be making powerful countries easier. Does that simple he not . Ultimately the debt burden resides at the national level. Are two things. First of all, looking at the esm its about trying to look at it as a good thing, saying the tool is already there. Dont look at it as a bailout. Its about saying no. Toxic. Uld be politically its a fragile situation and very weak. Italy can take all of its money. Its a Balance Sheet that the country doesnt want, they dont want to be in a situation where the debt rockets to 180 and they go through very few recessions going into a contraction. Feeling ultimately that your area is turning into a twotier film. Thank you for the update, its certainly getting complicated again. Oil repairing losses today. Making progress towards a deal to curb output. Tentatively set for thursday. They want the u. S. To join in but President Donald Trump is showing little willingness to do so. Jamie is warning a bad recession is on the way. His annualst sent letter to shareholders, its economic at jpmorgan he sent his annual economic letter to shareholders. Cannote that the market be immune to the effects and that the bank is unlikely that the cut is dividends. The lockdown in europe may be with germany and spain reporting lower numbers of new cases. We end in japan, where the Prime Minister is proposing a 988 billion package aimed at helping people hurt by the coronavirus. He will propose a state of afterncy be prepared cases of the coronavirus merged. Day on air, powered by journalists and analysts in 120 countries. This is bloomberg. Lets check on where european stocks have settled this monday. You can see the performance going through in germany, finishing up by nearly 6 at the 10,000 mark. A strong performer today. We will be turning our attention again in more detail to another cable show. It will be on Digital Radio in the london area, of course bringing you the u. K. Latest news when it comes to the virus outbreak, coming in the form of the Daily Briefing at 10 downing street. This is bloomberg. Vonnie live from new york, im vonnie quinn guy johnson is one the european close, on the markets. First or sales at bmw orange over 20 as the coronavirus hit all german automaker market. Hit and shutre down, their production lines were scheduled to resume operation in two weeks. Rollsroyce has extended its dividend for the first time, going public, the jet engine maker borrowing 1. 8 Million Dollars to help survive the coronavirus. Million in 17 years. And analysts are still trying to raise billions from loans. Toairline reaching out international banks, emirates was forced to ground their fleet, turning to buy into a hub for travel. That is your latest Bloomberg Business flash. Stay tuned, more is next. 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. Imie live from new york, vonnie quinn. Guy johnson is with me, too. Netflix struggling to keep up with consumer appetite. The chief executive officer spoke to bloomberg exclusively earlier. This is an unprecedented time. We have seen Strong Demand for our food and beverage products. Especially those countries that have been hard hit. We have free priorities. The first one is the health and safety of our employees. If we stay healthy we can make a positive contribution here. Next of course is Business Continuity is key. We are trying to maintain manufacture of the food in beverage products. Over and above the call of duty in the communities, around the world where we were present. Vonnie do you have all of your raw material supply guarantees . The minute that we saw the crisis spread we were trying to improve inventory levels at all levels of manufacturing. Materials that were works in process, as well as finished goods. Obviously there was very little time and i think flexibility is what is required right now. You do have logistics constraints. Sometimes you need to resort to operating and sometimes even that takes longer with a limited capacity. It really is all about managing in a very tightknit way this and showing flexibility. This is what our teams have focused on right now. How do you see the coronavirus outbreak changing Consumer Behavior in the longterm . Longterm is a bit far out right now. We are very shortterm focused at the moment to meet demand where we can. This is the most essential service that we can provide to consumers. What we are seeing from china, for example, where there is some improvement here, even in the aftermath, there is Strong Demand for value products and all buddy products. Maybe a bit less on premium. Given that we are of course in a recessionary environment, its a safe that for the other communities as we emerge from the Immediate Health care crisis. In the short term based on product demand, are you stockpiling any . Have you increased production of certain products, like water for coffee, for example . Generally we are trying to produce flat out in the face of Strong Demand, but keep in mind that we have limitations of logistics kicking in. Presentswer employee presence as a result of precautionary measures and enhanced safety protocols we need to run at the plants. We are not always able to give it 100 of the capacity that you would have under normal circumstances. We are working extra shifts where we can to ramp up manufacturing, but keep in mind that this is a challenging moment and just getting to the normal levels of manufacturing is a pretty Outstanding Achievement right now. That was the nestle ceo Mark Schneider talking to bloomberg earlier today. Hell with more details on this youre with more stock details, abigail doolittle. Abigail a zune video is thebi stock of the hour abigail zoom video is the stock of the hour. There has been a lot of negative press about privacy concerns and what the fbi is coming hijacking. Before detailing the downgrade, lets take a look at the ipo, its incredible. At its teak from about a year ago, the stock was up 250 . A lot of this happening this the virusurse, causing social distancing and working from home. The company had been seen as a bit of a hero. Thats a piece of the downgrading. A usual up this year on zune video has created this ultra premium valuation that will last. Basis,ncredible on a pe trading at 260 times earnings, something that you dont see everyday. In addition they are saying that the current popularity is coming schools and some schools recently on privacy concerns are switching over to other platforms. One positive is that revenues are climbing in a big way this year, up by 88 . Next year by 46 to over 900 million. Finally, during this work from home time, there have been other big winners like slack, the messaging company up about 9 . Multiplatforma communications company, of quite a bit. Citrix is the big winner, up 2 over the last few months, all higher. Not performing or participating i should say in the work from home rally. That is your stock of the hour. Vonnie thank you for that, have a guild dolittle, without stock of the hour. Coming up in the United States, balance of power. They will be speaking with Jim Greenwood of the lobbying group for biotechs, discussing the role of biotech during this coronavirus pandemic. Thats coming up next on bloomberg tv. Now to markets, interesting that how we deal that abigail was discussing working from home. Companies we have that provide temporary services for workers, anding workers in temporary bruntime jobs, taking the of losses today. Only a handful of stocks are lower today, the market really seizing upon what might be a permanent slowing, hopefully not, but in the last day or two we have seen the number of deaths go down. In england we saw a lower number of deaths then we get over the previous 24 hours. That had stocks rallying today. Makers like also , nordstrom gap, up 70 . A pretty strong day across the board in the s p 500s. Currency wise, the dollar index is stronger. Around now, we are at 100 812 on the euro. Even as we know, Boris Johnson continues to be hospitalized with no more details given. The vix is more muted at 44. The 10 year yield at 55 basis points. Once again, stay tuned for balance of power. This is bloomberg. David from new york to our tv and radio audience, welcome to balance of power. Stocks surging today on word that the death toll from the coronavirus is easy and some of the hardest hit spots here you joining us now is taylor riggs. Dayor what a difference a makes, right . Taking a look at the s p 500, we are up. We saw similar gains in the s p 500 one week ago monday, but for lossesndays were posting. You hadnt seen gains since march 2. Today looks like the second straight monday where we are seeing gains. Across assets lets look at what that means for the other indices. Vix, theok at the lowest handle since march 6. You are getting more funding pressure then is being released here as the doar