Transcripts For BLOOMBERG Bloomberg Markets European Open 20240713

Here are your top headlines. Blame game. President trump raised the prospect that china deliberately caused the coronavirus outbreak. This as the u. S. Pauses some tariffs for 90 days but not those on chinese steel or aluminum. Crude collapse. Wti sags to its lowest level in the 21stcentury on concerns that Storage Space is running low. The demand outlook remains gloomy. Signs of easing. Germany begins to reopen its economy as spain, france, and the u. K. Report the fewest coronavirus fatalities in weeks. Just under one hour away from the start of cash trading. Lets take a look at where futures are headed in europe. Futures are higher, whereas u. S. Futures are down. You can see the ftse 100 futures up more than 1 , as are the dax futures. S p, dow jones, and nasdaq futures, red arrows. Further away from the start of trade on wall street. It looks like we will kick off the week in europe higher. That divide between europe and u. S. Futures is interesting. We will watch that as we go through the morning here. Europe time of course, matt. Lets get uptodate on the first word news at bloomberg. We start in the united states. The u. S. Is postponing certain payments for 90 days. The move is aimed at freeing up cash for businesses hardest hit by the pandemic. It is limited in scope so china. Enforcement actions including those taken against airbus. In the u. K. , the government is defending its handling of the coronavirus crisis. This comes after a sunday times story suggesting Prime Minister johnson failed to take the outbreak seriously enough in the early stages. They said the article contains a series of falsehoods. The coronavirus pandemic is showing signs of easing in europe, italy, spain, and france. All of those countries reporting the smallest increases in fatalities in weeks, but the path to return to a normal life is not clear. France says it will unveil its plans within two weeks. The current lockdown could see the French Economy contract by about 10 in the year 2020. Matt. Your all right, so back to Bloomberg Business flash. Asian stocks traded mixed while the dollar strengthened on monday, which is today, and investors prepared for a dour earnings season. While keeping an eye on tentative signs that the Coronavirus Infection rate those deaths are decelerating in some countries. Crude Oil Prices Collapse with west texas intermediate crude plunging below 15 a barrel down to 14 and change, the lowest level since at least 2001. Lets get in the markets with laura cooper, our bloomberg mliv macro strategist. Lets talk about oil. This months contract has absolutely tanked. What does that mean for next months contract . At the mainook contract, we are seeing that. Pressure sending it to a 21 year low on the back of those. Even when we look to the june contract, what is interesting is that is actually under pressure as well. Traditionalimes the volume. This suggests markets are concerned about the nearterm capacity to store a lot of this crude because ultimately, we still have these 10 production cuts coming from opecplus members, not enough to curtail any kind of demand that is in place, so likely at this point, we are going to have to see some kind of u. S. Lifting of lockdowns because they account for about 20 of global demand. A catalyst in terms of the west texas in and of itself. We are seeing actual Retail Investors really highly into etfs, so this does point to potentially hopes of this market rebound coming through. Really interesting to see that taking over as the most traded contract towards the end of the relevance of may. We have the may contract of course. Slightly more than a day perhaps. People that is something do not want to. Let me ask you about stimulus. Following the oil story. That is not the story. China of course putting in place further measures. A rate cut of a sort over the weekend. What is the latest thinking on what china has done and more to come chinese . China lowerd see its loan prime rate. This was largely expected. This is crucial because this is where most new loans are based, in this one your prime rate. It is ultimately to keep a lid on home prices. Given the fact that we are likely to see the chinese economy, it is going to take quite a number of months to get back to the precrisis levels. Accommodative stimulus to persist and we will need further cuts down the road. Even the fact that we are going to need to continue to see borrowing costs be contained in china. Even then, we are seeing Interest Rates across the curve extend declines. An issue of concern in terms of tightening conditions but it will keep the pboc on watch. Today, i am just wondering bull bear debate is like. The bears are hard pressed to make their case although he is in that camp as swap. What are you hearing from the rest of the team . Laura i think it is interesting because at this stage, it is a question of will the lifting of lockdowns be successful to the point that we will see the unleashing of pentup demand . And that will spur a sharp vshaped recovery in the u. S. Economy in particular, or whether we are going to see a second wave of restrictions which is going to magnify the economic downturn at hand. We are seeing markets largely shrug off record declines across Economic Activity. This does point to market looking through this so that recovery and a part of this could be just the swift and proactive and quite exceptional measures of stimulus coming notably from the fed, so it could be the case, but is that enough to actually a lot of these businesses, to allow for a fairly swift recovery . We are getting mixed reviews from certain members, but ultimately, there are so many uncertainties at this point that it is too hard to declare of it briefly either thes or the bears at this the bulls or the bears at this stage. Anna laura cooper. Give us your thoughts on what or bloomberge blog television. Oil plunges. We will get an investors perspective on what is going on in the front end of the oil curb. Oil plunges to the lowest in two decades amid concerns the world is rapidly running out of places to store crude. We will get thoughts on that, next. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. We are just under 50 minutes away from the start of cash equity trading across europe and in the u. K. , and right now, we are seeing futures that point higher. Thats get the Bloomberg Business flash. Here are todays top corporate story for you today. A 1. 2 trillion fund says forget earnings season. Stocks. This round of reporting will not offer much for investors. What is more important is understanding how the economy will get back on its feet when the lockdown ends. For that, he says, look to europe for clues. Invest 28 planning to billion dollars on Cloud Infrastructure over the next three years. It is a major effort to extend one of its Fastest Growing businesses. The sectors revenue rose 62 in the december quarter. The chinese ecommerce giant and build more data centers will continue to develop its own technologies such as ari chips. Compensating is managers and employees with additional shares after the price dropped sharply amid the coronavirus pandemic. Getting caught more than in half from the late february high, the banks overall bonus pool is down 1 . The new ceo signaled to a swiss tv channel that the lender may curve pay for 2020 to show solidarity amid the crisis. And that is your Bloomberg Business flash. Anna . Anna lets talk more about oil. We touched on this a little earlier and in the headlines. Oil extending its slide with wti prices falling to the lowest in more than two decades unconsidered in the world is rapidly running out of places to store the crude. That after output cuts proved counter ant to plunging demand. It expires tomorrow, tuesday. However, with the more active june futures falling by around one third as much on more than five times as volume. Joining us, the chief economist adds a company. Even excluding that, looking at the june contract, we are still seeing further moves to the downside in oil prices. That is where volume seems to be right now. What kind of visibility can you hope to have around the oil price . Tohave seen strategies cooperate seemingly agreed to but perhaps not follow through on or difficult to conclude, a lack of storage. Any visibility at all around oil . I think the point is simply that the economies of the world are going down by much more than was previously reckoned in the Second Quarter. Look at what if we happened to china in the First Quarter, which was a lead element in this whole coronavirus problem, the recalculation of chinese gdp, it fell over 12 in the First Quarter from the Fourth Quarter of last year. Rate is to say, an annual of about 40 . And no circumstances. The oil price of course is going to go down if anything like that is happening elsewhere. The oil price is going to go down quite a bit further. Arguably, you might have to sort of pay someone to take delivery of this stuff. Effect does that have on the economy, charles . Because it would seem to me that Cheaper Oil Prices are good for consumers and good for business. On the other hand, people are talking in terms of miles per week now instead of miles per gallon as the lockdown continues , and of course, in economies like the u. S. , the oil industry employees a ton of people. Charles exactly. If you look at who benefits and who loses, quite clearly, the consumers benefit and the producers lose. So obviously, its very bad news for the middle east and for russia and for anyone really dependent on oil production. In the case of the euro zone, it is almost entirely and importer of oil, and therefore, is a beneficiary. On the other hand, in the case of the united states, there are very large sections of the economy, particularly the shale frackers, who are going to be in as a result of this. Specifically of course, what this does is give evidence that the World Economy is actually suffering probably more in the Second Quarter than even our dire forecasts suggested. Worth pointing out of course, as you suggest, the role of the u. S. That is perhaps different from the last time we saw oil prices down this low. What does that do for the u. S. Economy, taking those two dynamics that matt was illustrating together . What does this do to the u. S. Economy, a weaker oil price of this extent . Charles what it does is it sends the stock market down. There has been sort of an absurd sort of runup of the stock market on the basis that somehow people can just ignore the fact that theres going to be no earnings at all this year to speak of. Actually, of course, people will not be able to ignore the lack of earnings. Neither will they be able to ignore the lack of dividends and so on and so forth that make a large part of u. S. Personal income. What this actually tells you is that there is a substantial and very, very major recession in the united states, and of course, with that in turn means is that the stock market is as technicians might put it whistling dixie. [laughter] matt that is a great phrase. Great american phrase, charles. What do you expect in terms of the economic rebound on the others . Because that is what some firms, Like Northern trust, are pointing to as light at the end of the tunnel that will bring markets back, and Northern Trust notably says watch europe as an example for what happens in the u. S. Charles yes, well, i think, you know, optimism is a very admirable state of mind. But i think we have got to realize that people are not going to come out of this and suddenly say, yes, ok, in fact, i am going back to the sports event i went to before or that theater, that restaurant, that bar. Be ase there will not complete cure. Therell simply be some sort of decisions about just how to handle things on a daytoday basis. And so, you know, it is absurdly optimistic to imagine that people are suddenly going to snap back and do exactly what they were doing six months ago in three or six months time. They are not. And in addition, theres going to be in response to this very economy. Al drop in the theres going to be a very significant slowdown of Business Capital spending, and that in turn means that it carries the slowness forward into the Third Quarter we think for sure. There is another negative quarter after the huge crash in the Second Quarter, and then, only very tepid recovery starting in the Fourth Quarter, so i think its completely unrealistic to imagine that you can just look through this downswing that is taking place now. Charles, youre going to stick with us. We get more from charles dumas, chief economist at ts lombard, in the next block. Tentative signs of anything on restrictions of everyday life. We will bring you the latest, next. This is bloomberg. Anna welcome back to the European Market open. We are seeing this divergence between europe, u. S. Futures, and european futures pointing in slightly Different Directions right now. Lets focus on what is going on in europe. The region to start the week from today, germinate will allow shops of less than 800 square meters to open. Spain plans to extend its lockdown into may but will loosen restrictions on children going outside, which has been up to this point in place. Charles dumas is the chief economist at ts lombard and is still with us. Charles, what is your concern around the euro zone right now . Focus on infections in various countries, lockdown measures, the easing of lockdown measures, but more structurally, if you like, around the euro zone, you as well as others i know have concerns around the sustainability or the lack of fiscal infrastructure. Think the basic problem is that the measures that have been taken to deal with the Financial Stress of recessionunder the that is taking place in the Second Quarter, the solution has entirely consisted of measures to make sure that they do not go under. Which is fine, by itself, but of course, what is needed is actual spending to take the economy out of this recession, so if we take eurozone economy in aggregate, of course, you focused on germany, which is the best place the reduction of gdp in the First Quarter, we think will come out at around 1. 5 to 2 , and in the Second Quarter, at about 5 . Which is a 20 annual rate, of course, and that means by the Third Quarter, or indeed by the Second Quarter, you are already down by about his percent or 7 . The question is, how are we suddenly going to bounce out of that . The short answer is no. People will of course consume a little bit more, but on the other hand, Capital Spending will be down and will trade is exports, which means which European Countries depend on to a great extent, will not be bouncing. They will almost certainly be through mostessed of the year, so we really spending. With what is the problem the Government Spending are the government aid packages that are out there . I read that, for example, the lockdown has deprived german inailers of 30 billion euros sales. On the other hand, the German Government has fast tracked one trillion euros in a two workers. Is there a problem with the pipes . Are too many people gaming the system . That just does not add up. Charles no, no. I am not concerned about whether the German Government can afford to do what it is doing. And the germans actually handled the 2009 recession rather well with the system they call which means shortterm working, and they are probably doing the same again now, so in that sense, the measures are ok, but the problem of course is if i am insolvent, and the Government Supports me, that is fine, but it does not mean that i am suddenly going to go out and spend money on expansion or indeed if i continue to be insolvent, it will not be obvious that the government can continue to support me indefinitely. Charles, thank you very much. Thank you for your time. Charles dumas, chief economist at ts lombard. Thank you very much for joining us. We will talk further about oil. Oil is headed for unpredictability as the current contract nears expiration. We have seen a lot of volume jumping from the may contract into the june contract. Even the june contract says look to be relatively under pressure. Various people pointing out we have had statements of cooperation from producers of oil, but sometimes, they have not been followed through on with any real agreement on production. We will talk about oil, next. This is bloomberg. Anna welcome back to the European Market open on bloomberg tv. We are 30 minutes from the start of cash Equities Trading and european futures point higher. U. S. Futures, a little more sluggish and catch up in europe but european futures point up one. 2 for u. K. Futures some things we are watching for this week 1. 2 for u. K. Futures. Markets are bracing for the worst numbers in years after Major Economies close down to stem the spread of the coronavirus. Lots of looks to visibility and returning cash to shareholders. To showis expected Strong Subscriber growth when it reports numbers. That is coming on tuesday. Increased demand for home entertainment, as all of us can attest. Health comes to focus wednesday when roche reports. The Company Announced friday its aim to sell an Antibody Test next month and Credit Suisse published its earnings and outlook, a bank that suspended its plan to buy back as much as 1. 5 billion of shares has said it will withhold part of its Dividend Payments until the second half. Multinational foot manufacturer nestle reports its sales for the quarter on friday. Interesting, the food business, both the challenges and the windfall they are getting or did get in the early phases of this. Matt lets get the bloomberg first word news right now. Here are todays top stories. Pledging more stimulus after the central bank lowered its when your loan prime rate to 3. 85 . Beijing is promising another trillion yuan in bonds, 140 billion, after the economys worst contraction in decades. Say the nation is facing unprecedented economic difficulties. President donald trump says china may be knowingly responsible for the coronavirus outbreak. It is a major change from january and february, when the president praised the chinese leadership in their handling of the crisis and it echoes comments by mike pence, who told foxnews sunday china wasnt as forthcoming as it should have been. The European Central Bank Officials are pushing for a according to bank the financial times. Take billions in euro debt off balance sheets, including nonperforming loans left from the financial crisis. The ecb Supervisory Board chairman proposed the idea in early 2017 and now, he is trying to get it off the ground again. 16 are dead in the deadliest shooting in canadian history. A gunman in nova scotia disguised himself as a Police Officer, shooting people in fires. Omes and setting officials have confirmed the perpetrator is now dead. The provinces premier says this is one of the most senseless acts of violence in our history. 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. Anna . Lets turn to the subject of oil prices and weakness. Forin new york is heading next or dose of unpredictability over the next two days as the current contract nears expiration, adding volatility to a market that is grappling with a glut and evaporating demand. Is extending its life, falling to the lowest price in more than two decades. This is about concern the world is rapidly running out of places to store the crude. Joining us from new york is rdern. Ergs annmarie ho we see the may contract under real pressure. With few places to store it right now. Tell us what is going on with the current for nearest term future, but further out the curve. Annmarie cumulative point and im glad you brought up the chart. You can see all of the deliveries and what you can see is deep contagion. These contracts that expire tomorrow, you will see until that is closed out. Markets areinancial meeting the storage hubs and pricelines. The priceline will expire tomorrow. You will have to physically take on that crude and all of that will be going to the hub in oklahoma in america, and it is pipelined to canada, texas, the midlands and to the gulf. If you do not financially settle up, you have to take on that crude but rates in storage are going up. There is nowhere left to store them so twofold. If you are a cold or you might capitulate on the price to get rid of the contract. If you are willing to take on the physical oil, you will be asking for seriously steep discounts because of the stored situation. Later out in the year, the prices are a little bit higher, but they are still coming under pressure today, the junejuly contracts, as well. In the physical market, texas, bidding in crude as little as two dollars a barrel for some oil. This is potentially a harbinger of the fact we potentially have negative numbers on this physical oil trade. Matt and yet prices at the pump have dropped 1. 80, but people are talking about the fact that it doesnt matter how cheap gas is if you are not driving anywhere. What about the forward curve . Does it look like oil is going to be valued more highly in june, in july, august . Annmarie thats exactly right. They are still under pressure, these contracts but the prices are higher in june, july, august and later out into the air in december. That shows we are flush with crude, but you will not really see these gasoline prices, jet fuel prices, all of this under pressure. This is the simple fact that no one is using it i shouldnt say no one, but the majority are accusing it. People are stuck in their homes, there is locked down, people arent traveling. Once that starts to pick up, which is what the curve is trying to foreshadow, that is when you will see prices get more of a floor under them. Anna and what about producers agreeing concerted action here . Betweenlked about this the saudi and the russians, the u. S. , what they can do, as well. Where does that leave us . Some suggests there is a lot of talk and it is not followed up by action. Others say there is very little they can do, if no one is going anywhere, it becomes difficult to sell this stuff. Annmarie they have agreed to the opecplus deal, but it just doesnt meet the demand destruction we are seeing. Whether or not there was an agreement or not, producers have to ratchet back because of the storage concern, especially the likes of finland countries inland countries like russia and the united states. Say is the would u. S. Has decided to join this agreement in the sense that it will have these economically driven output production cuts. Not mandated. Thesands of producers in united states, but something to watch, the Texas Railroad commission is in charge of the oil in texas, this advisory board, basically and they will be voting on whether or not they should mandate on pro rationing of cutting production in texas. Potentially this is something we could see. Normally, we would never talk about this because everyone in american producers want to talk about this free market that we have in the united states, but this is something on the agenda and the fact people are talking about it, even following it like an opec meeting, this could potentially come to the united states. Matt i think free market is something that goes in quotes right now and you can take it with a grain of salt. Annmarie hordern, reporting on the oil market for us out of new york. Coming up, has the cure been worse than the illness . Weeurope begins to reopen, will focus on this weeks the eu summit and the plan to fix the regions broken economies. This is bloomberg. Matt welcome back to bloomberg market the european open. Just under 20 minutes away from the start of cash equity trading and we are looking at futures that are higher. Ftse futures come up more than 1 right now. The latest on economic measures in europe. In the wake of the coronavirus shutdown, the region starts the week with some easing of the restrictions here in germany. Small shops will be allowed to open from today in most states not in berlin until wednesday. Officialsorts ecb have held talks with the European Commission on setting up a socalled bad bank to vacuum up all the lost loans. Lets get more with bloombergs maria tadeo, who joins us from brussels. Know about europes economic response, including this Bad Bank Proposal . Leaderse know european have a highly anticipated meeting and we are seeing ideas and leaks being put into the public, to see when european leaders meet. The latest has to do with the ecb floating the idea of a bad bank that would allow the most stressed lenders to offload some of that bad debt and you have to put this in the context of the fact that there are people who are not going to work, who are not getting paid, companies that have not done any business and made no money, so there is a likelihood some companies are but the same story reports the European Commission is saying not so fast. They are not too keen on the idea and this shows the pattern we are in between countries and institutions who want to go forward, between more hawkish voices saying lets use what we have. Maria, talk to me about the latest news flow surrounding loosening of lockdown measures around europe because different European Countries are going at different paces and that might be entirely appropriate. They all have different situations and levels of infection to deal with. What about italy, because this was the early point of concern for europe, wasnt it . Now, what is europe saying about lifting lockdown measures what is italy saying, sorry . Maria at this point, we know the lockdown was extended until may 4. That has been announced already, but tomorrow, he will speak before the senate and is expected to provide details. How many test, for example, italy would handle on a weekly basis when they go back to work. You can see the italian boiling points this week because there are two Big Decisions that will have to be taken almost in conjunction. Reopen, how to reopen, which regions go forced first but on a macro situation, what to do with the money . Will italy trigger it or not figure it . Conte put up a fight with european leaders and how will that end . You can see there is a lot of nervousness around the news flow out of italy. Matt thanks very much, maria tadeo in brussels with your rundown on what watch for, basically in europe this week. Lorettad fed president mester says it will take time for the u. S. Economy to reopen. She added the central bank is too busy limiting damage to the u. S. And markets to be concerned about excessive risktaking. Take a listen to some of that exclusive conversation. Loretta we are in a real unprecedented, incredibly deep, deep shock to the economy, and i think it behooves us at the fed to really use our tools as best we can to get us through this pandemic shutdown period, mitigating if the negative impact on the economy so the recovery can be as fast as it can be at that point. We are moving into unprecedented territory but we are trying to cash through no fault of their own are impacted by the virus. Corporate debt we havent done before and we will include some fallen angels that have had investmentgrade rating before the virus hit. You are right, we are doing things we havent done before, but at this point, i dont think we can be that concerned about those kinds of moral hazards. We have to look at this is a hugely impactful and negatively impact. Cand we have to do all we to not do permanent damage to the underlying fundamentals of the economy so when the time comes and activity can pick up, we can get a decent recovery out of this. I love what you just said. Where People Struggle and where you might be help us, buying bb credits that were bbbs might make sense to people. Buying highyield etfs with exposure to shaky sectors doesnt make sense. Why the decision . Why the etfs . Pres. Mester part of what we are doing and all of the things we are doing are twofold. Thee trying to make sure markets stay functioning. Some of the efforts of the fed has done are geared toward market functioning and some are geared to mitigating the negative effects on household and businesses by making sure we have credit flowing to those businesses. I look at the etf part of that as a market functioning issue, and we are continuing to look for gaps to make sure our markets are functioning and i would say some of the efforts we have taken already have improved functioning in the markets. There are two things going on. One is making sure and this is the feds responsibility to make sure we have markets that are well functioning so credit can flow and do what it precisely because those are an essential ingredient for the economy. Any other policies we can do can flow through so there is a transmission to the households and businesses that need those fundings. At this point, the fed is all in doing every thing it can to support the economy. When we get to that Third Quarter reopening and it is time to stimulate the economy, is there more you think you need to do or can do, and what would that be . Pres. Mester i think we are going to half what it looks like when we get there. I dont think we are up against any constraint on what we can do. I think we acted appropriately, rapidly, in an unprecedented rapid way really because of the recognition of how deep this shock was. Engineered because the investment we are making in public health. When we get to that point, we are going to look at what we can to deport some of the things the federal government is doing in and bef ppe program prepared to use our tools as appropriate to make sure markets function and we are supporting the economy, as we always do, so that we can get back to normal, Sustainable Growth with full employment and price stability. Is goinghat our goal to be. That is what our goals always are. To do that, we have forwarded guidance, and our interestrate tools we are doing. Right now at zero. We will need those things as appropriate to make sure the economy can recover and get back to a sustainable path growth path. That was cleveland fed president Loretta Mester speaking to bloomberg exclusively about what the fed is doing, what the fed is buying and why. Lets talk about the u. K. The hmr see, the tax collecting officerhief executive is on domestic radio saying the furloughing firms, companies that have decided to furlough staff will have their money by april 30. This is a scheme announced march 17. Whatever it takes, it was announced. It takes time to get into gear as it has in other parts of the world, perhaps, although many questions will be asked. Also questions being asked about loans being given to small and mediumsized businesses and whether the government needs to underwrite or backup higher percentage of those. Lots of questions still in terms of the you ks response. That latest line from the hmrc. We will talk about shake shack, saying it will return all of its 10 million in loans from the u. S. Government, talking about businesses not so small or mediumsized having access to government funding. That is as the nation faces criticism for struggling to deploy funds to struggling businesses Small Businesses. This is bloomberg. Matt welcome back to bloomberg market the european open. Six minutes from the start of trading. Shake shack, the u. S. Burger chain, says it will return 10 million in loans from the u. S. Government. The move follows widespread criticism over Large Companies that got access to the funds despite them being to save Small Businesses. The u. S. Is among the nations the crafted mask massive stimulus programs and now they face the challenge of getting the funds where they are most loan program sme dried up. Is danidetail relief burger. We should start with if there is any hope of minimizing the Economic Impact of coronavirus, governments need to do what they can to support small and medium businesses. We cant lose sight of the fact that actual individuals would be in g7 countries, Small Businesses under 250 employees are about 50 of the workforce and 50 at least of value added to gdp. Theyve definitely been an even, the responses, between nations. The biggest portion tends to be guaranteed loans. Includeds. , it has 250 billion to help Small Businesses but it is already used and small momandpops complaining they have been phased out. Other nations are fishing backlash in the u. K. , just 1 of companies have reported successful applications. Germany and france, by far the most successful but the existing bureaucracy means they dont faced a lot of the logistical hurdles other countries do. Anna thank you very much. Remember, we were talking about this previously and suggesting you need deep pockets and the organizational ability to get the money to the right places speedily. Dani burger on what is going on for smaller businesses. We are minutes from the opening. We will talk to you about what is going on with equity markets. Higher. In europe point u. S. Futures point downward. This is bloomberg. Anna a minute to go until the start of equity trading for this monday, hear your headlines. The brain the blame game. President trump raised the prospect that china deliberately cause the coronavirus outbreak. Terrace for 90 days but not those on china. Crew collapse. The deby ti sags for its lowest lowest wti sags to its level. Demand outlook relates gloomy. And signs of easing as germany begins to reopen its economy as spain, france and you kate report the fewest rotavirus helices in weeks. Spain france and that u. K. Matt for european futures we are having around 1 gains for the major equity indexes. That is what we see on the ftse now as well as the dac and they are stoxx 50. He could kick off this week on a positive note here in europe even as u. S. Futures are down. Lets take a look at the live trade here, as they kick it off. 75 . Anish ibex now up the ftse up. 2 . Rise into theo early seconds of the session. Longer, a while, a bit for the dax to open up. You start to see benchmarks like the bluechip euro stoxx 50 come here. 75 . X now open, up and the cac as well. Things rising higher in terms of European Markets now, even as u. S. Futures are down. Anna lets talk about what is going on in these markets. We have European Equity markets making sluggish gains. The cio at latitude Investment Management joining us. Good to speak with you, freddie. Do you believe in this rally . S p, running a lot off our lows. In the years 3. 5 to date percentage turn, incredible considering the selloff we saw. Market,and a new bull up 20 since the middle of march. Do you believe in this rally . The rally has happened quickly as did the initial crisis in the bear market. It is a very short term. It may be due to another fall due for another fox news gets worse. I do substantially believe markets will be higher in the next six to 12 to 18 months. It may be due for another fall if news gets worse. A lot of investors were betting on an end to the bull market and a sustained low. When it started to rally again, just about everyone we talked to , everyone is saying the Economic Data is going to get worse in the next six month or three months, so surely we will doubledip and there will be a crack to the floor. I see the levels we reached at that point as top 10 valuations to Global Equity globally. There still trading in the top quartile of the attractive valuation basement last 50 years. Even at todays levels you have a hype ability of making decent forwardlooking returns from equities but you will have to write out the increased volatility. Expect the remainder of the year to see extreme volatility. Volatility in the true sense as opposed to just crashing markets, up and down for its recent swing has not surprised me. We have added to our portfolio in the third week of march and added since then. We continue to see opportunities in the signal stock level as well as the market as a whole and do believe it is probably the most exciting asset class left to invest in, especially even u. S. Yields now yielding less than 1 . As and when the dust does settle, equity markets are a discounting mechanism that tries to look through investing in the shortterm and the longterm returns look exciting. Concernedty, are you freddie, are you concerned, in the u. S. 20 Million People are unemployed. The country has not been able to get money out to small and mediumsized businesses, so there could be a cascade of makeup sees there cascade of bankruptcies there. On the others of this, companies that do survive will be saddled with debt, as our countries. They will have had no income in the meantime. It seems like an absolute recipe for disaster for earnings in 2021, and we see already downward revisions across earnings globally. Hillary made a special chart to is 3700 that, it does not seem there is any reason for optimism, that we come out of this any stronger or as strong on the other . I think that is one of the key reasons we focus on the largecap stocks. If youre looking at small and medium Cap Industries which are going to be, may or may not be , they willselves struggle through this environment. There that offset obviously more people will be unemployed or looking for work and there will be lower levels of consumption over the next 12 to 18 months and people hope to read find work. But the larger businesses, that market dominating businesses in the major Market Indices and what we focus. A lot of people said the smallcap will be the want to rally out of this as it has declined and often small caps rally because they have fallen more. But in the long term, the next two to three year term, i see this to be an opportunity for the largecap stocks. Steel market shares continue to invest through this. Talk about in cashstrapped. The majority of our businesses have cash on hand and have debt they are funding at 1 2 or 3 in five or 10 years, longterm debt. And they are investing in their businesses now to be better and stronger on the way out of this. And there earnings this year are going to get hit dramatically. Some retailers and restaurant businesses are currently earning close to zero revenues on a daily basis, yet theyre still investing and still growing and they are going to come out stronger. My belief is if you can build a portfolio of those sorts of businesses, franchise businesses, in six full in cyclical and defensive sectors which will survive, they will be able to thrive on the other side whenever that is, given the opportunity cost and the disk it rates discount rates in the market, you do not want to be on invested in the market. Anna freddie, where you see resilience in your portfolio . Has it been in the places you would have expected, supermarkets and the like, or where else . Yes, some of the more obvious sectors. Telcos are guiding flatter up this year that is a revenue stream, we all still pay our phone bills. Probably more for data if your pay as you go. Supermarkets had a boom. Tobacco stocks are doing well. Some of the Health Care Stocks are doing well this year. And some of them more nice place like Industrial Gases where, they have an industrial business that is going to suffer as Industrial Production falls, but they have health care oxygen businesses which offset and slightly more niche areas like that. And a few essential retailers globally. Then the obvious, netflix, amazon, computer games, though stayathome trades have been doing well also. That is phase one for what happens. You continue to see growth be expensive but highquality stocks doing well. As until we can start to discount a cyclical recovery. And the underlying economics of the situation is very bad, i agree with matts comment. Anna freddie, thank you very much. From latitude Investment Management, the cio and he stays with us. We will get his top stock picks next. As coronavirus keeps large swaths of the world at home, why does freddie include a travel company in his portfolio . Also a key names he wants to keep across as well. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open, 11 minutes into the session. 25 e looking at gains, 2. 5 percent, that acts up. 5 and the ftse barely treading water now. , the cio of latitude management is still with us. We are looking at gains. 25 dax up. 5 . The freddie, you have a new Investment Vehicle for investors who want to pick up what they see, what you see as relative bargains right now, isnt that the case . Yes. We have Just Announced we are going to launch a new global strategy to take advantage of what we see is a once in a decade opportunity to be investing. We are doing that at the moment. I see this as a very exciting opportunity to invest in equity for the longterm. I agree with howard. It is across the board as well. What is interesting about this market is we are going to have volatility for the next few months which is great for stock pickers, especially patient once who have a longterm in mind i think we are likely to see a change in leadership. It does not have to come immediately. But this growth led market with had for the last decade, every time you get a serious crisis in the series bear market like this, a change of leadership happens. In the past 70 years we have had six distinct value versus growth markets. This is been the longest growth versus value market. Often there are tickets where they trained together and both can do well or badly together or one can have a strong leadership against the other. Im keen within this opportunity to to manage opportunity manage it and include cyclical exposure and include cheaper stocks in the market to get the velocity on the others. And i do not mean june, probably next june. Investing with that timeframe in mind, i think investors can pick up real bargains here. And i believe this market is alive with opportunity. Anna so not in the shortterm perhaps june of next year your time horizon. You also mentioned earlier keeping an eye on companies that are going to win out in certain sectors, where the competition is going to be less at the other side of this. Does that explain why you have a company like looking. Com, which must be a poster child for difficult sector to be in right now . Booking. Com. Yes, booking. Com the Largest Online travel agent in the world is in the eye of the storm on this one. But they have a billion dollars in cash and the boys had a Business Model were they do not have negative working capital. They do not charge you in advance of a booking but once you have booked. What that estimate is that expedia and the other competitors as well as smaller players had to pay all this money back, huge cash drain from their business. They are firing people and have far less capital to invest in their systems. And booking had an advantage in terms of systems, margins, sales growth, market position and, we believe, corporate strategy, head of its peers, and we believe, scale, head of this crisis. It will only come through stronger. The question for me is not do i believe it will be q4 this year or q3 next year where we recover back to traveling, or is there going to be the kind of structural impairment for business travel. Of course, those things are interesting and they matter. The bigger question for me is what we still book travel online . Willie book more travel each year for the next five years . I think that is likely. And will there be one dominant player in the marketplace in the beste, and one of the businesses ive analyzed in the last five years, which is booking. Com. We are happy owning some of those stocks to this. For that very longterm advantage. It is about being willing to take those to pick the stocks up when you see them attractive, not trying to call the bottom. Everyone is trying to say is this the cheapest we are going to get it and for us it is saying is this cheap enough for our any future models of what could happen, then we are already investing in the stocks. Matt will you be willing to sell investments that have done well, or that have held their value, like google . In order to pick up those that have been hit hard . Absolutely. We have been doing more rotation. We tend to trade little. Our average turnover per year is 10 . We have done that in the last month. We have probably done more than that and so we are very happy buying and selling. When you have a trending led market as we have had for the last three years, the right answer broadly is to doolittle. But when you have high levels of volatility, you have to be little you have to be willing to sell the winners to buy back into those who been suffering where you believe that business will succeed but the stock prices falling. You have to take some of the money off the table from some of the winners from the last decade. Matt freddie, thanks so much for joining us. Latitude Investment Management taking advantage of this moment. Continue the conversation with us on Bloomberg Radio at 9 00 a. M. U. K. Time. Join us and tune in if you are in london on the dab Digital Radio network. Up next, oil is heading for an extra dose of unpredictability as the current contract nears expiration. We will explain. This is bloomberg. Anna welcome backanna to the london andrket 22 9 22 a. M. In barris or berlin. Or berlin. In paris phillips investing one Million Euros in increasing production of ventilators and hospital equipment needed to combat the coronavirus. The ceo spoke to bloomberg earlier. At phillips we see Strong Demand for diagnostic equipment, for ventilators, four patient monitors. Also for telehealth at informatics that aid the treatment of critically sick patients in hospitals. At the same time, we see hospitals have postponed socalled elective procedures, and therefore the demand for our image guided therapy is down. We also see Lower Consumer demand for our personal health business. A 2 g that up, we saw decline of revenue in the First Quarter. A 5 included we estimate impact from the coronavirus pandemic. In the Second Quarter we expect that to be more severe. But in the Third Quarter and Fourth Quarter we have assumptions that lead us to say we expect positive year on year growth. We expect the second have to be thewhat better, that for full year we expect a modest revenue increase. The confidence we have for that second half year is built on the back of a strong order, Strong Demand and connected care and precision diagnosis and hospitals resuming some of these elective procedures that, for example, for cardiovascular patients, they really do not want to postpone too long. Altogether, we have given guidance, but we have not made it quantitative. That is what your headline is referring to. Overall, at phillips, we are working very hard to deal with the customer demand. We call it our triple duty of care. Taking care of customers and patients, supporting business continuity, and ensuring the health and safety of our 80,000 employees around the world. Many of which are working exceedingly hard, 24 7 in three shifts to cope with the Strong Demand for Critical Care equipment. Anna on that Critical Care equipment, one of the big things youre working on is gearing up to produce 15,000 of a new easy to use ventilator. The rest products e30. Respironicsnt x e30. Hundreds of components are needed to produce it. Even that many are stepping in to produce ventilators, does that make it more death goal for you to source components for your ventilators . We have three factories in the united states, two in pennsylvania and one in california and we are adding correction lines and investing one had a Million Euros to add capacity to make as many as we possibly can. We are working with partners flextronics and table to do so. Ventilators are not simple products. Besides the components you have Sophisticated Software that will look at what the patient really needs in terms of ventilation. Indeed is them supply chain of components. We need to make sure we deliver as fast as we can. Extent, im glad we have been able to build an airlift between asia and europe and the united states. Because no day can be lost. You refer to other companies with initiatives. To some extent, that is distracting. I think people want to have a proven ventilator in the both for intubated patients as well as noninvasive ventilation needs. Matt i suppose everyone is trying their best to join this global move. Can we go back to the reporting side for a moment . I want to date the print the dividend. I want to dig deeper into the dividend. Rhetoric you just used in terms of confident second half with a youdend of. 8 five cents, have gone to scrip on this, to paying this insurance only. Do you anticipate getting back to a Cash Dividend before the end of this year given the guidance you have just given to us . We are announcing today we will keep the dividend of . 85 over the year 2019. But we are turning it into a dividend in shares, scripted as you say, because we want to preserve cash. It is an uncertain world out there and we do not know exactly what will happen. If everything works out, fine, thats great. Liquidityl conservation as a strategy that we have to embrace. Phillipsas the ceo of speaking to bloomberg earlier. One input cost that will be cheaper for phillipsproduction is oil. Wti is extending its slide, falling to the lowest in more than two decades. On a concern that the world is rapidly running out of places to put the crude it would potentially bite. You can see potentially by. West texas intermediate trading 14. 95 permex for bell, and 18 slide today. In terms of the next months futures contracts. June futures right now at 23. 69, maybe it hopes storage will open up. You can see contracts rise in hopes demand will come back. 28. 52. In august futures 30. 53. Talk still to come, we about the locked and what it means for the u. K. Around house prices. We get insight from right move. Want to tell you we are losing steam on European Equity markets. The European Equity still up i. 3 . The ftse flat. The cap up modestly. The deck up. 4 . Very modest here as u. S. Futures look weaker. This is bloomberg. Nowadays you do more from home than ever before. The xfinity my account app puts you in control with Digital Tools to give you the help you need when you need it. Get fast and easy answers with personalized help 24 hours a day, 7 days a week. Change your wifi password to a phrase thats easy to remember. Even troubleshoot your services on your own. Were working to make things a little easier for everyone. Download the xfinity my account app today. Matt welcome back to the european open 30 minutes into the trading session. Lets take a look at how equity markets are doing. It look like we would come out of the gate strong with futures 1 rate acrosstheboard. We have dissipated a bit and are now looking at the stoxx 100 just up above the it in water level of. 1 . 77. 33 so we are not doing as well as you may have thought. Still have u. S. Futures trading lower this morning. Lets take a look at how the Industry Groups are trading. As you can imagine, it is going to be a split picture here, with positive returns today for health care and insurance and personal and household goods. Some defensive names are rising. Auto parts are up today, as well as travel and leisure, two of the hardest hit in this crisis. On the downside, basic resources. The price of oil collapses. Resourceas and basic stocks the biggest losers. Food and beverage and Construction Materials also down. No surprise to see the oil sector under pressure. Lets get a first word news update and then our top stories this hour on bloomberg. Certain is postponing tariff payments for 90 days, move aimed at frank of cash for businesses hardest hit by the pandemic and has limited the scope. Duties onot see u. S. China, steel and aluminum, or Enforcement Actions including those taken against airbus. China is pledging stimulus after the central bank lowered its oneyear prime rate to 3. 85 . Beijing is promising one trillion yuan in bonds, 140 billion. That is after the economys first contraction in decades. Due to the coronavirus. Chinas leaders say the nation is facing unprecedented economic difficulty. The coronavirus pandemic is showing signs of easing in europe. Arey, spain and france reporting the smallest increases in fertility in weeks. The path returned to normal life is unclear. Smallest increases in fatalities in weeks. The lockdown could see the French Economy collapse but contract by more than 10 in 2020. Doesman in nova scotia dies to himself as a Police Officer and shot people in their homes and set fires. Officials confirmed the perpetrator is now dead. The premiere of the province said this is one of the most senseless acts of violence in our history. Global news, 24 hours a day, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Matt the average asking prices for u. K. Homes fell slightly in april according to right move. The property website morant the coronavirus lockdown has made it virtually impossible to produce meaningful statistics. 20 us now from right move, miles i wonder if everything is so frozen right now that it is difficult to go on a look at real estate. I am looking for a new place. Is that the biggest problem . It is. Unsurprisingly with stayathome, very few properties can be put on the market or sold because you cannot go and physically view them. It is hard for the market to function. Activity is bubbling away underneath and there seems to be pentup demand. But you cannot physically transact. So it is hard to produce statistics. All people can do really is research online. Or watch videos of properties online. But they cannot physically view. Yes and we have seen the virtual viewings picking up. It morning. How else, this is an innovation that has been around for a while, videos of properties. No doubt it is being pushed further to the forefront given the prominence of these events. Can we see the sector innovate so when real estate vendors can open up again in the u. K. , theyre able to do so in a way that is safe . Absolutely. And that means the staff in the office being safe. And also sellers and buyers. Social distancing will be here for a long time to come. Is becomingsafe ingrained in people psyche. Therefore, as you sick, the use of virtual viewings, not therefore as you say, the use of virtual viewings, not just to garner interest but maybe your first viewing you would have done physically, you will now have a detailed online viewing to limit the number fiscal viewings you actually do. You have Estate Agents offering virtual valuations as well. Wandering around their property with samples. And people may not want three or four Estate Agents valuing their home physically and they may decide to a three online valuations, before choosing it an agent to come around and do photographs and measure out. While this is a terrible outcome it does force change and innovation out of the coronavirus situation. The if you look out to second half or 2021, or 2022, a lot of people have missed out on income. A lot of companies and consumers will be soaking up debt now. Into theice pressure rest of 2020 and 2021 . Lockdown wefter will probably get a slow motion. , as the market finds its feet. People will be wary of visiting each others homes. You might have fewer properties coming on the market and fewer buyers. That equilibrium may about matt. That that leak librium may match match. T equilibrium may the key thing will be forbearance by lenders. People will start struggle to pay their mortgage. With record low base rates Interest Rates on mortgage at a record low as well. What will keep people in their sales thattop forced do drive prices down. So the outlook is more uncertain for 2021. I think this year, slow motion. Recovery andon implement levels, and confidence boosting, and other signs in the economy. It may be that the government recognizing that the Housing Market is a key part of economic recovery, will look to put incentives in place, try to kickstart the market. Anna if we were looking for incentives, which would be the ones that would be appropriate . Not at this point because the market is locked down as are many other parts of the economy. But when it comes to the time when we need them . Buy supports, obviously, the House Building industry, that supports employment. For demand for brandnew homes. I think we will see an extension to help to buy. Getting First Time Buyers back into the markets because they are often at the bottom of the chain. Stamp duty. Already gives most for time buyers no stamp duty to pay. I think the key thing is going to be low deposit mortgages. Available. Eadily mortgage availability. That has been one of the drivers of the Housing Market. A number of sales up 11 on per year. Mortgage bell ability with low deposits helps firsttime time buyers and helps the markets. I think the government will be encouraging letters to make sure low deposit mortgages are available. Miles, the start of the year seems like a long time ago. Doesnt it . Rightmmercial director at move talking about that u. K. Housing market. Coming up we will speak exclusively to the white house Economic Advisor and National Economic Council Director larry kudlow. You can see that after three 00 p. M. At u. K. Life. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open and we are 40 minutes into the trading day. Looking at. 5 on the dax. Lets get a Bloomberg Business flash, your top corporate stories from the bloomberg terminal. Credit is compensating managers and employees with additional shares after the price dropped sharply. Suisse, more than cut in half from fm are high. The overall bonus pull down 155 . The ceo signaled to a Swiss Television station that the letter make curb pay for 2020 to show solidarity amid the crisis. A 1. 2 trillion fund says do not worry about earnings season, by u. S. Stocks now. Mcdonalds Northern Trust thinks this round of reporting will not offer much for investors. What is more important is understanding how the economy will get back on its feet when the lockdown ends. That, he says, the u. S. Should look to europe for clues. That is your Bloomberg Business flash. Lets talk about what is going on in the u. K. The u. K. Government has issued a fears defense of Prime Minister forrest johnsons handling of the coronavirus crisis. Report in the Times Newspaper to size the brick churn meant of ventilators criticized the procurement of ventilators and says that johnson did not take the virus seriously. Responding to the sunday times article the government says it contains errors and actively misrepresents the enormous amounts of work going on. Ministers added there was no imminent prospect of lifting the lockdown on the country. Blair, from the institute for Global Change and former u. K. Prime minister. Very good to speak with you today and good heavy on the program. Thanks, anna. Anna how would you be setting expectation in the country now around life as normal, around the lockdown and how long it continues because the government intoeen resistant to enter conversations about lifting the lockdown. The messages stay at home. How would you are people for the life that lies ahead . Why institute put out a paper today, a detailed emanation of how you ease from the lockdown while controlling the disease. You have two phases, the suppression phase which is what we are in now, and then the managed or controlled revival of the economy. The collateral damage, economic and therefore health, because it is a false lemma between life and livelihood. The economic and Health Damage is so great you need to be considering now what are the measures that will allow us to get out of the lockdown and return to what will be a new normal. It is not going to be the normal experience before the virus took hold. Really, it is a question for me not so much of looking back on what the government has done, but looking forward to what it has to do now, to put preparations in place, in order to make sure we can ease that lockdown as significantly as possible, on not losing control of the disease. Is that balance we try and set out in our paper and in order to simile a debate about it. Because that is now is the right time to have the debate. Anna now is the right time to have the debate. What should peoples expectations be . And if you were in government, what would you say to prepare people for the likes it will not be normal and for how long into the future . There two things. The first is you have to reposition the whole of government in order to make sure even though you may say with hindsight we were somewhat behind the curve in respect of the suppression phase, we have to get well ahead of the curve in terms of that revival of the economy. We suggest you identify the absolutely court tasks around this. Things like mass testing. Making sure there is adequate and proper Business Consultation sector by sector. Make sure you have the tracing in place, which is going to require not Just Technology but also manual tracing, and enormous amount of work. Howd do you get International Travel started again . We suggest you take each of these areas, and we suggest what they are. And you have to put a proper command and control structure in place for each of these, with a senior person, who may well be from outside government or bureaucracy. Many of the skills required for this are skills more appropriate in the business sector, skills of logistics and procurement and so on. One thing we say is you have to reposition government to do this effectively. With the different structure within government the second thing is, you have to take people with you and explaining the normal will be new. For example, i think there will be widespread use of mask and we may have to insist upon that. When youre doing tracing, if you look at countries like south korea where tracing has been successful, through the application of technology, it has been pretty invasive. Have to prepare people for that. We have to be able to make sure your accumulative all the knowledge over what therapies globally, not just in britain, globally, have been working or not working, in order to make senseeople get a proper of the severity of the disease but also recognize we have to get our way out of the situation where even though only a small is a risk,tion at the moment everything has had to be shutdown to protect the populace not large. Anna you also mentioned in your paper how we need to play with dividing the country by , andaphy or age group assessing whether we can have different policies for different groups. Thoseuld you suggest messages would be communicated . Although the science might suggest those are sensible, some of the polling suggests the moment the public by it to this lockdown is based on a we are all in it together mentality. Howd you get to the need do you address the need to segregate the country in a way that could become divisive . This is the difficult thing to resolve. Treat peopleu can at thedult way, beginning of this the anxiety was that people were not treating this seriously enough. You have to make sure this lockdown really worked. I do not think theres any danger at the present time of people not treating this seriously. They know it is serious. People have experience from their own lives. Will they know of have the disease or suffered with it, people who have died with the disease. I do not think you need to persuade people it is serious. But you are going to have to take them on a journey that says look, there will be experiment to as we release people from this. So, you might decide to trial certain things in areas where there has been not so much spread of the disease. One of the things we do in the paper is braked on country into different geographical distance districts. Some have been hit more severely than others. You might decide around schooling that you experiment. A lot of lessons that in three weeks you will have accumulated from elsewhere in the world. Austria is opening its schools. Other countries will do the same. You will be able to see what is a sensible way forward. You have to take the public with you in this. Disease, ofthat the course, we have to suppress because it is severe. But i thicket as possible that after this i think it is possible that after this we go back into the familiar landscape and find it has completely changed economically and socially. Im not sure people are paired for that. Anna talking about the economics and the economic legacy. What about the debt government is accumulating here . Will this result in an return to austerity or will there be alternative solutions . It is hard to judge that at the moment. The government wants to do everything it can to stimulate Economic Activity at the moment. For that stimulus to work, you have to have the rules in place, and the confidence in place, that people feel they can go out again. At the moment for example, if you opened up restaurant, have any people would actually go . Hard to judgeery what the right response mediumterm and longterm of government is going to be economically, until you see how you can get out of this and return to us much of normal as you possibly can. In the paper we said there are Different Levels of this. When youre doing a hard lockdown, the economic damages severe. As you ease it, the economic damage is progressively less. He will not be able to tell what is the right longterm position for the government economically until you see how the easing of restrictions works. You will not be able to tell. Anna tony blair, thank you very much. Take you for joining us with your new paper from the institute for Global Change, and former you cape Prime Minister. Thanks very much to tony blair for joining us with that. Coming up, which assets will do best as lockdowns are eased . Eased in are being some way in various parts of europe. We will talk about that next with the market live team member joining us. This is bloomberg. Matt welcome back to the european we are almost an hour into the trading session now. We are looking at green arrows. The cat has come back from a little change to. 4 gain. The dax up. 7 . The ftse rising. 5 . Lets look at what is moving markets with Richard Jones our mliv fx and rates strategist. Richard, oil is the biggest story of markets today. Crude, comenymex down below 50 per barrel. How does that affect below 15 per barrel. How does that affect fx and rates . The first thing to say about the oil move is if we do get the lockdowns ending, and i think they will end very, very slowly. In germany the government is taking a cautious incremental approach unwinding the current restrictions. Even if we get strong small increased Economic Activity increasing, it should benefit the oil market, especially given how beatendown the oil price has been. It is important to emphasize any return to normality will be slow to materialize. Oil should be a beneficiary. Markets, theof the longer the lower for longer oh price narrative will feed into lower headline inflation. As a result, i think Interest Rates, which already were going to be lower for longer given the response to the pandemic, i think they will be there will be more downward pressure on yields because Central Banks will be required to stimulate the economy and fight against disinflationary impulse that comes from lower oil prices. Matt richard, thank you for joining us. It will be a quick one today but we will get you on for longer. Fx ratejones, mliv and strategists. He has just on the road in berlin. Thats it for the european open. Up next, surveillance. Im headed over to radio. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Wti opens the week by thinking to its lowest level since 1999 as the demand picture remains grim. Some signs of home, new york shes a drop in daily deaths and u. S. Leaders say an agreement on additional aid is close. Transcend the u. K. Report the lowest fatalities in weeks. Germany reopens the economy on a limited basis today. Good morning, afternoon, and evening, everyone. Pp