Here its a similar story in the u. S. , our high after going to the past 10 00, but within the s p, you still have the down names doing the best. Is the second best, it remains to be seen if there is any sort of substantial rally or just a rally within a bear market. You can see that reflected in other asset classes, 25 billion worth of supply coming online in just about two hours. Of the threeyear, it is doing continues to roll over today after yesterday. At the bestlding on performing within the s p as well. We will see as we head into the next few hours if we are able to hold on. Guy absolutely. The correlation between what were seeing around the market performance, people are certainly nervous about that relationship. U. K. , Boris Johnsons government is facing a serious challenge at the worst possible time in the virus outbreak. The Prime Minister hospitalized and the foreign minister under pressure to Solta Medical equipment shortages which are making headlines on a daily basis. Joining us is bloombergs u. K. Government editor. What do we know about Boris Johnsons condition . We understand he is in a stable condition and in good spirits. Importantly, they are not paying us to say that he is not receiving mechanical ventilation. Patients with coronavirus to go on to mechanical ventilation see their life chances decreased significantly. We will get a further update from downing street on the Prime Ministers condition and we will see whether his condition has curated further or is continuing to stabilize. Can you give me a little bit of perspective, being an american, what is the chain of command and how it works . With the constitution if something happens or the president is incapacitated, it goes to the Vice President. Completely different is the short answer. Theres no written constitution, there is no Vice President as such. What johnson has done unusually is the name a colleague of the first secretary of state, so he will effectively advertise with Boris Johnson deputize with Boris Johnson. He will be constrained by the cabinet, he wont have the full powers of the Prime Minister. He will have to deal with colleagues, all of those who are involved in response to the helpavirus, all of them with Boris Johnsons job. They portray a unity cabinet, how long that situation lasts four. For. Guy do we know how much authority has been transferred to mr. Robb at this stage . It is still unclear. The question is who is going to be chair and cabinet, who is going to be leading the press conferences . We could season tension between hancock and the Health Secretary leading the push on nhs which has been the focus of government efforts right now. They are trying to get ahead on testing, providing enough equipment in the form of ventilators and to equip medical staff with equipment like masks and downs, the protective equipment they need. That is were the focus of the government attention has been. To followup on that a little bit, are we in a place where policy is set and we are just executing . Or are there further steps the government is going to be taking to feel the hit with Boris Johnson like extending lockdowns are getting stricter with those were not abiding by the rules . Ed it has been a pain to say that the focus has been on executing, on delivering the Prime Ministers plans. The problem is that the cabinet has got to make some very big choices to lead to what could be the peak of the virus. To extend the lockdown, do they make it stricter . Do they have to make choices about which patients get treatment . On evenhey prepare keel afterwards . The pm wont necessarily be able to take part in this. You starte the moment to see tension emerge. Guy ive seen some chatter today certainly on virtual trading about the possibility of some sort of unity government. How close could that potentially be . We have a new leader now of the labor market, what is the possibility that the labour party and the conservative party with the majority do, indeed, worked together . I think you saw johnson in recent days try to bring labor and other opposition parties more with the response to the coronavirus. We will see what happens really matters how long johnson stays in hospital. Wasael talking this morning pretty reluctant to do the same. That may change if the situation is prolonged. Alex it is sort of a similar but broader question to that, how has the u. K. Government under Boris Johnson been working with world leaders, for example, and the u. S. , President Trump on friday announced an export ban on certain medical goods and then reversed that yesterday. What has it been like in the u. K. And is that disrupted . Ed there has been a tremendous were, as pull, as it the big argument has been over ventilators. And whether the u. K. Could have or should have signed up for the European Union program to buy more of them. There were four invitations extended to the u. K. Government, all turned down. Partovernment says for its that this program didnt offer anything that it couldnt do on its own. Tensionseeing those that International Trade about what the u. K. s relations with other parts of the world are and you are seeing them being coming to the form. Alex i really appreciate you taking the time, it was obviously a staggering headline. Thank you very much. Now i want to get an update on what is making headlines in the market. Taylor lets take a look at some of the major averages, because coming off the highest of the session, this is at the volatility has been increasing just a little bit or so. There are some headlines could be crossing this. The number of u. S. Homeowners with mortgages who have stopped making payments down to 2. 6 . That is up from a quarter of 1 just a month ago and the loans that are supporting low and moderate income borrowers are also jumping to four and a quarter percent, those are now in for parents forbearance. Cracks that were seeing are not in the bond market, take a look at the 10 year yield. Yields are rising for a second additional day, they were up eight basis points yesterday, an additional eight basis points today. We have climbed last week to 76 basis points or so in just a matter of a few days. What that means is you are transmitting that into additional gains in Investment Grade and highyield index Investment Grade continuing to have a lot of optimism that they will be supported by the feds and the highyield index. This is interesting, this is even after fallen angels are keeping the index growing and we are seeing some glimmers of hope here, but i would argue that there is still a lot of unknown left within that highyield market. What has been lagging traditionally in this market is also the similar story that we saw yesterday, the auto index is one i will touch on briefly. Gm are than 8 , ford and leading those gains. Again, perhaps with a turnaround, what was losing in the last week now gaining today. Guy thank you very much. We are going to keep going through in terms of what is happening in new york state, in terms of the new cases and deaths that are happening. Cuomo, 130 8000, 836 cases. 731, that isrting the biggest daily jump that has been seen, that may account for why many markets are just getting a little softer. We are going to carry on the conversation regarding those markets coming up next. We will get his take on what is happening stateside plus also what is happening here in london with the Prime Minister hospitalized. This is bloomberg. Alex live from new york, im alix steel with guy johnson from london, this is the european close. Apparently new york reporting a guest daily jump in deaths is 5489 coming from governor cuomos press conference, the biggest daily jump index. It may not be a surprise that markets are going to get a little bit heavy as we continue in the trading session. We do want to check in now, here is mark. Mark the worlds biggest producers are moving toward an agreement to call off their price war and cut output. Ministers and diplomats will spend the next few days talking about who is willing to cut production. The key players will be saudi arabia, russia, and the United States. Italy is considering easing the nationwide lockdown as new coronavirus cases and deaths continue to flatten out. Bloomberg has learned some companies can open by mid april. Denmark and austria were the first European Countries to loosen restrictions as the government seeks to gradually revive economies crippled by the containment measures without risking a second wave of an actions. The acting u. S. Navy secretary has apologized his Harsh Criticism of an Aircraft Carrier captain. He was relieved of command on the uss Theodore Roosevelt after raising the alarm over the spread of coronavirus among his crew. Thats motley told the crew the closure was too naive or too stupid to be the ships commander. He apologized last night. Askingtic senators are Deutsche Bank for details of its contact with President Trumps family business. The trump has asked the german lender for obedience the on some of its loans. The senators want to know the extent to which Deutsche Bank holds Financial Leverage over the president. Global news 24 hours a day on air and tictoc on twitter. Powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Thank you very much, indeed. Lets carry on talking a little bit about what is happening in these markets. Chris turner, ings global head of markets. Chris, lets talk about what were seeing. Were seeing around the world, surging back, still heavily down on the year. Does this feel like a bear market rally right now to you . Early, thefeel a bit equities are very forwardlooking and would turn far earlier than economic activity. I think we probably already have seen the low in midmarch, perhaps we might retest it. I would expect more volatility just as you mentioned earlier, i iink volatility think volatility levels are coming down, but we will still trade a much broader range than we have been in recent years. In how long do we end up we bump along trying to figure out what the economic trajectory is . I heard you say equities are a discounting mechanism, looking to react to any piece of positive news, but how long do you think this consolidation phase could potentially last . We are looking at some very the activity, perhaps the u. S. Might fall as much as 4 quarter to quarter, as the data materializes, we are going to be looking through the middle of the Second Quarter and into the end of the quarter. What is the size of this out there . You are probably going to say it last about one or two months until we really gauge the true size. That, where do you go for actual safety . What works are things like momentum and certain names in tech. What hasnt worked are some of the defenses. Where can you cash . The dollar is rolling over now. What is the best place to go wait this out . I was going to Say Something is thering, but safety long end of the core bond market, the time being. I would discourage people looking at the fx market, south african bonds, it is far too early to play to those emergingmarket countries which are going to suffer the legacy issues were the fallout of higher cost around the world. Alix does that mean you want to be buying the dollar, or is it too early to call the dollar up . Dollarhink probably the has topped for nearly topped. Crisisly the funding which broke in the middle of march, two or three weeks, it also this huge portfolio in the month of march, which i think really inflated the dollar. Over time, particularly the dollar funding issue gets resolved, probably within four weeks or so, the Program Starts in just over a week or so. We think the dollar could. Would probably like to think that we have already seen the high and we favor defensive currencies first, maybe when we have a better handle on the size of how the policy measures are working, thats when we would like to probably be a bit more aggressive and move back into commodity territory. Lets talk a bit about what is happening right now in the eurozone. There is a Video Conference call taking place between finance ministers. The german finance minister talking about a big task for agreementns to get an today. How behind his europe in terms of forming a common physical response to what is happening here, a joint debt response to what is happening with the eurozone economy . If you end up in a situation where debt is not the issue, how toxic you think bdps potentially could be when the market comes back around looking at how sustainable that debt is . You really nailed it there. The issue is it is not just providing more debt for italy at the present time, and certainly the schemes out there, particularly whether the esm is fired up, they are already aggressively buying through current schemes as well. To hold together, the end result is that italy is just left with much higher debt to gdp levels. That issue could come back in one or two years time. Being, things were contained because of the backstop, but it would be a major step, probably too early, but a major positive step if we could move toward a debt neutralization. Guy we really appreciate your time. Global head of markets. This is bloomberg. Thank you so much for speaking to us, what drives you . A desire to do things well, a desire to create, a desire to make things happen. Within the last few minutes, weve seen new york state performing deadliest day yet today in terms of the number of fatalities associated with coronavirus. We are now seeing a similar thing coming through in the united kingdom, the u. K. Reporting its deadliest day yet, 786 fatalities as a result of the virus. With 55,242, but the 6159 from rising to 5373. Alarming figures, extremely alarming figures. The Prime Minister in intensive care. Lets take a look at where european markets are. Europe, the markets have been very well based as we worked our way through the day and they remain so. The nasdaq which has been a very strong performer, just now shy of the 20 uptick that we saw as a result from march 18 to now. Airbus having a very, very strong day as we continue to watch what is happening with the to figurector, trying out desperately to exactly how to calibrate the response to the changing nature of the demand story as a result of the virus and the impact it is having for airlines and the new aircraft. In terms of the sectors, travel or later remains the best leisure remain the best sector. The only sector that is in negative territory as we head toward the close here in europe is the Health Care Sector by 1. 2 . Guy 30 seconds until the end of regular trading in europe this tuesday. Lets look at where we are. We are off our highs but still positive. Lets get it idea of what the trajectory of the session has looked like. This is how we are, fading into the close. Off our low, which we hit around an hour ago. Certainly not at our highs which we hit much earlier on in the session. Up 1. 8 . Volume has faded. In terms of what we are seeing from an individual market point of view, a little bit of the dispersion story in terms of the various makeups of the various markets. The dax outperforming common industrial stocks bouncing back. Unloved stocks catching the biggest bid. 40 dax up more, and the cac up around 2 . In terms of the sector breakdown , travel and leisure is the best performing sector. You are seeing names like carnival doing well. Hotel groups are trading strongly. Catering companies coming back. They have all been badly beaten up. The market is buying back all of the stocks. The insurance sector, the chemical sector. The Safest Companies at the bottom, health care. Food and beverage, utilities. More defensive names not the market favorite but we see how things progress as we work away through the day. Jay powell talking later this week. It will be visiting to see with the fed chair has to say. Iag up 8 . We are seeing rollsroyce trade quite strongly as well. Much more prudent in terms of the way it will shoot funds back to shareholders. The market is pretty happy with what is happening with the rollsroyce. You also have a big stake being taken in rollsroyce by a key investor and that is also ing the market. Y rollsroyce cutting its profit goals. Roche trading down, and you see hello fresh, food delivery company, down nearly 10 . The market reversing. Equities catching a bid. Stuff that the market has not loved coming back strongly. Alix it is a very similar story in the u. S. As well. We are off the lows of the wesion but up only 2. 5 , were up stronger before. We are seeing pick up in selling on the long end of the yield curve. Yesterdays three day takedown was ok. We also had a ton of supply. The dollar is still firmly holding onto its lows of the session. Oil is losing shine. Im interested to see if it is equity leading oil or oil leading equities. We know the g20 Energy Ministers will meet on friday and we got a headline irans Oil Ministers spoke with the opec president and realized that other Oil Producers must adjoin. No doubt that would be some kind of hurdle for our conversation on friday as well. Guy . Guy lets talk about what is happening in the euro zone. Eurozone leaders are struggling to agree on a concrete strategy for the fallout from the virus. Leaders not reaching a compromise when it comes to debt mutualization. Lets get an update on what we think might come out of it. Joining us on the phone is bloombergs maria tadeo. What can we realistically expect from this gathering . The germans, the dutch sticking to their position that debt option,ation is not an saying esm is available. Maria if you listen to the italian premier, he went on prime Time Television and said we will say no to the esm, yes to corona bonds. The italians are not moving. They want to see the joint debt out on the market. It haspast 24 hours, actually become more explicit and more entrenched in their position. There are two things that are striking. Todayclear that even there are big divisions. This is something we have talked about for years. This is a debate that has been going on for a decade. Andcan see those divisions argue ideologically are still present on the table. We have talked about these meetings for weeks but the market is not moving. And bears repeating that governments need to do more. We cannot move the backdrop every single time. Nothing is changing. In terms of expectations, there was a lot going into the meeting. What i am hearing is not much has changed. There is common ground. There is momentum behind the of a joint fund to break everyone together. Countries like spain are shifting to that, saying this might be better than fighting for a corona bond if that will never take hold. It is not clear how we will be able to come up with a joint position. At this point it is vague. Guy is there alix is there any detail you have learned about how eu leaders can get esm and omt to work . I have heard that all countries cap esm, or the conditions that go along may not be that onerous. Are there workarounds . That, we know when youcentage look at a country like italy, youre looking at 39 billion euros. When youre looking at spain, youre looking at 30 billion euros. Will that be enough Going Forward . There predictions of a recession. The italians do not want to see any conditionality. They feel like it looks like a bailout and they believe this is a Health Emergency and is not their fault. The germans are trying to change the narrative. This is not a bailout. We do not want strings attached. It does seem this debate has esm isorward and something they do not want. You have to come up with Something Else or situation where italy will be in a serious weion, and that is have seen how that plays out with the yields spiking. Guy maria, we will wrap it up. Maria tadeo in brussels, thank you very much, indeed. We will continue to monitor what comes out of that meeting. There is an expected press conference. We will update you on bloomberg with that news. Now one of the Biggest Hotel companies in the world has been forced to lay off more than 200,000 staff around the world but the company ceo says he plans to rehire everyone it is counting on a strong Balance Sheet to weather the storm. The ceo spoke exclusively to nejra cehic and manus cranny on the phone. I plan to rehire every single one of them. 300,000employees out of because of the hotels being closed as of april 1. I do not know how long this crisis will last. I know you will see light at the end of the tunnel. I do not know whether we will come back as strong as ever before because of the recession, but i can tell you for a fact we. Ave over 3000 hotels i intend to reopen every one of them. I intend to rehire every employee and i hope people will come back traveling and enjoying geography and discover people and territories by early the summer. I could be dead wrong, but im accor to survive and get back on its feet. Jra you pointed to early summer for the Hotel Industry coming back. Lets get more visibility in terms of bumping spirit what are you seeing on that front that is giving you hope you might see some sort of a comeback for the industry by early summer . Sebastien the only sign of hope we have, and it could be very tiny, is out of all the reservations we had booked for july and august, less than 10 as of last night have been canceled. Are andnot mean people have to be as optimistic as i am in terms of the epidemic being under control. I am not naive. I know we will be having 25 occupancy as opposed to 75 . I tell you i will do everything to make sure my hotel will be open and to welcome anyone of you. It changes every day. Manus we wish you well with that aspiration. That is one of the strongest messages ive heard from any ceo on the network. Lets take china on the roadmap. To some formrning of working life. What can you tell me about the business in china as a roadmap for occupancy usage, booking, and return . Sebastien as of two or three 85 of the 25,000 workforce was at home in china. As of last night, the exact same number, those 20,000 plus pieces are back in the hotel and 90 of the hotels are open. Depending on the location, but business is slowly back, including food and beverage in our hotels. One of our partners associations , which is the second largest operator in china and has over 3000 hotels has been giving me his number last night. Are backs hotels reopen with close to 60 occupancy, of course in a lowbudget segment. Of course 98 of our visitors are local chinese, but there is indication that in a country that was badly hit, three or five weeks after the fact of the epidemic being under control, activity is back in the hotel space. Nejra one thing you pointed to previously was your level of your relatively strong Balance Sheets. As we look past the crisis we are in back now as we have been doing for a lot of this conversation, could your strong Balance Sheet create any opportunity for consolidation post crisis . Thingien it does one first. Thanks to this i can sleep at night. I am busy all day 14 hours trying to look after all of my employees being furloughed to make sure they have medical assistance and i can assist them if they have financial distress, which we have been doing. I am looking to my owners. You are correct. Having over 2. 5 billion euros of cash on our Balance Sheet permits me to weather the storm and to basically handle long prices. I hope it will be much shorter. Thanks to god we have this under our belt. That was Sebastien Bazi n, ceo of accor. We want to check in with bloomberg first word news. Mark Boris Johnson is in stable condition in intensive care. He was moved there yesterday to help them recover from the coronavirus. Innsons office says he is good spirits and has not needed a ventilator to help him breathe. In spain, assigned the government is yet to bring the coronavirus outbreak under control. The dental rose by 743, and were almost 5500 new infections 743. Eath toll rose by japans Prime Minister has declared a state of emergency in tokyo and surrounding regions. There has been a recent surge in the number of confirmed coronavirus cases in the area. The emergency will last for a month. It gives local governments more power to contain the spread of the disease. House Speaker Nancy Pelosi wants the next round of stimulus to be at least 1 trillion. The speaker told Congressional Democrats the package should include more direct payments to people and more Small Business loans. President trump says the fourth stimulus bill is under serious consideration. 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. I am mark crumpton. This is bloomberg. Guy, back to you in london. Guy thank you very much indeed. European markets finishing off their highs. Still in positive territory. These are the settlement numbers. The ftse 100, not much action during the auction. The climb out of the lows continues for european equities. 20 from itser march 18 lows. In terms of what will be covering later on, the cable show will be taking to the air at the top of the hour. Jonathan ferro will be taking you through that hour on dab Digital Radio. A big part of the next hour will be a briefing from the u. K. Authorities from 10 downing street and questions about Boris Johnsons health and what is happening in hospital with the prime mr. Front of mine for many. It u. K. Yesterday reporting what is happening with the Prime Minister front of mind for many. The u. K. Yesterday reporting its deadliest day. That briefing will be my will be live on dp Digital Radio on dap Digital Radio. This is bloomberg. Alix breaking news. Mitch mcconnell tweeting just now he will work with secretary mnuchin and later schumer to approve further funding for the Paycheck Protection Program by unanimous consent during the next Senate Session on thursday. It is like the ink has just dried on the 2. 2 trillion package. Nancy pelosi talking about another 1 trillion needed. Mitch mcconnell talking about more funding for the Paycheck Protection Program. It is like government to the rescue in the u. S. Guy absolutely. The Central Banks continue the stimulus story as well. We are getting news from the ecb in terms of it trying to make credit more available to the system and decided to accept greek government bonds as collateral. That is a huge step forward for greece in terms of its inclusion back into the Financial System in europe. The ecb is also adopting a more generalized reduction of in terms ofaluation taking an broader amount of collateral. That is going to make the availability of credit even more straightforward. It is announcing this as a temporary increase in the euro system risk tolerance, basically what we are seeing in terms of the Financial Market reaction. Eurodollar maintaining the gains that was previously generating against the dollar. The euro maintaining the gains following the announcement. Big movement in terms of the Financial Market reaction. Alix the same for the u. S. Equity market. It raises the question of what is priced in . How much more aggressive do investors think governments will get . So do other areas of the market where he looking at intervention possibly the oil market. On friday the g20 ministers will be meeting to discuss the state of the market. Iran says any deal has to deal with the u. S. Joining me his Oil Strategist julian lee on the phone. Where are we in any Global Production conversation . Julian . The short answer is we do not know. Increasing seeing is suggestions saudi arabia and level,are at a technical or a level below Vladimir Putin and Mohammed Bin Salman are talking to each other, they seem to be inching towards some kind of an agreement, but i think both of them are looking for some form of contribution from the United States. I think theyre probably both coming to accept that is not going to be the sort of government to government type characterized has the opecplus deal that brought saudi arabia and russia together. What they will except from the u. S. I think is unclear at the moment. That could still be the stumbling block when the ministers from the g20 get together on friday. How much time to they have to make this work . If this doesnt work this week, how much longer do we have before Storage Capacity runs out at the market makes these decisions for the leaders . Julian some producers are already at that point and may be beyond it and having to cut back production because they cannot sell their oil or store it. It is a casebycase situation. If you have got longterm contracts or you have joint venture refineries that are taking your own crude, then you have to some extent guaranteed market, although given the demand structure the demand destruction, i do not think any market is guaranteed. For those countries who have significant amounts of Storage Capacity, the United States is in a good position, saudi arabia , certainly if you look at historical crude storage numbers out of saudi arabia, they have quite a bit of headroom. Other countries like nigeria, witha, perhaps even russia very limited Storage Capacity and sales done on a spot basis are beginning to feel the pain already. Alix i have definitely heard that about russia as well. Julian, looking at the curve as contango continues to steepen. What you think the market is pricing in at this point . Julian what we are seeing at the moment is prices are moving in such a way that it remains economic to store oil on tankers. You need a wider spread to be able to do that than you do to be able to store oil on rand, which it on land, which is cheaper. Thet think people market is fully priced in, the sort of supply disruptions we are going to see caused by a lack of storage. Down,s meeting does break these meetings on thursday and friday do break down without an agreement, i think we will see another leg down. Even if there is an agreement, it is unlikely to have any Material Impact on production view. Policy point of we may already see that. Guy i will have to jump in. Time beats us. Julian lee. Thank you. This is bloomberg. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] guy you are watching the european close on bloomberg markets. European markets closing up around 2 , similar story in the United States. The s p up 2. 1 . Fairly grim data from the u. K. And from new york state. Yesterday the worst day in terms of fatalities as a result of coronavirus. Balance of power on Bloomberg Radio and television with david westin. That conversation is one you want to tune into. Here in the u. K. , you will be going to Bloomberg Radio and the cable show, we will bring you the u. K. Briefing. Have a great afternoon. This is bloomberg. David from new york to our tv and radio audiences worldwide, this is balance of power. I am david westin. The markets are up again. Doing well on a risk on day. For a full report we turn to taylor riggs. Taylor hey, david. Great to have you back. [no audio] they are aiming to pass a loan program to help funding increase. That would be on thursday. The positive headlines are outweighing the negative headlines as of now. 10year gilts 10